Overview of all topics
SAP S/4HANA is an ERP software from SAP that was launched in 2015 as a new solution and is now primarily implemented as a cloud ERP.
SAP S/4HANA (or SAP Cloud ERP) enables companies to cover and manage their day-to-day processes—from marketing to accounting, and from logistics and human resources to procurement.
SAP customers and new clients can operate SAP S/4HANA on-premise (in a local data center) or as a private or public cloud solution (using a service provider’s IT infrastructure via the internet).
Experts refer to the product as a “real-time ERP suite” because, as an ERP system, it can analyze and process information and data in real time.
Since 2014, customers have already been able to use simplifications in the finance and accounting area through SAP S/4HANA Finance. SAP S/4HANA has been available since November 2015.
SAP S/4HANA is an abbreviation and is made up of various parts:
The foundation of the new SAP S/4HANA software is SAP HANA, an in-memory database. “In-memory” means that the main memory is used as the data storage, which results in significantly faster data processing.
Previous SAP ERP systems could also run on third-party databases (e.g., from Oracle, IBM, or Microsoft) – this is no longer possible with SAP S/4HANA.
Although SAP S/4HANA was completely redeveloped, it is fundamentally based on the data model of its predecessor, SAP ERP. However, SAP has radically simplified this data model.
One advantage of its compatibility with the traditional ERP system is that SAP S/4HANA does not necessarily have to be implemented from scratch – a purely technical migration is also possible.
Find out how to create the basis for a valid and secure roadmap and which aspects you should pay particular attention to.whitepaper “Your path to SAP S/4HANA”
The digital core is the centerpiece of SAP S/4HANA. According to SAP, it represents “the consistent realization of an IT environment designed to support digitalization.”
The core connects all applications with each other, enabling the use of data “without information loss across the entire enterprise” – and in real time.
The reason lies in its architecture: unlike SAP ERP 6.0 (where OLTP and OLAP were separate systems, with programmed indices, aggregates, etc.), information is no longer stored in rows but in columns.
The advantage is that a column-based database can execute analyses and processes much faster (in real time), as the need for indices and aggregates is eliminated.
The functions that are central to companies are located in the core, while all additional functions are positioned outside the core as separate line-of-business solutions. These solutions can be integrated as needed.
The clean core approach (also known as “Keep the Core Clean”) describes an SAP strategy in which the central core of an ERP system such as SAP S/4HANA is deliberately kept unchanged and not extended with customer-specific modifications.
Instead, the focus is on relying as much as possible on standardized processes—best practices. This approach reduces maintenance effort for customers, lowers costs, and significantly simplifies system updates.
In such a modern SAP architecture, individual requirements are not implemented within the customer’s core system but are instead realized on external platforms such as the SAP Business Technology Platform (BTP) in the cloud.
With SAP Fiori, SAP S/4HANA features a new user interface that resembles conventional apps from the consumer space.
The advantages of SAP Fiori include: it is customizable, user-friendly, and convenient to use; it works on a role-based principle (providing the right information at the right time across different user interfaces); and it can be used both on desktop PCs and on mobile devices such as smartphones or tablets.
No. Companies can continue to operate their classic ERP system until the end of 2027. Mainstream maintenance for Business Suite 7 (including SAP ECC) will end at that point.
However, an optional, paid extended maintenance can still be used until the end of 2030. No separate license costs will be incurred until the end of 2030.
If desired, the existing ERP system can be operated in parallel with SAP S/4HANA. Should difficulties arise with SAP S/4HANA, the existing ERP system can also serve as a “fallback option” in emergencies and help prevent disruptions to business operations.
Although SAP S/4HANA was completely redeveloped, it is fundamentally based on the data model of its predecessor, SAP ERP. However, SAP has radically simplified this data model.
With SAP Fiori, SAP S/4HANA features a user interface that resembles conventional apps from the consumer space.
There are three migration paths available:
SAP S/4HANA, as an ERP suite, provides companies with a powerful foundation for digital transformation, but it requires careful planning and strategic alignment. It is particularly important to consider both technical and organizational aspects early on in order to maximize potential benefits and minimize risks during migration.
Advantages of SAP S/4HANA:
Disadvantages of SAP S/4HANA:
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The individual cloud solution for maximum data control
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Since January 1, 2021, the negotiated partnership agreement between the EU and the United Kingdom has provisionally applied. Many companies still have to make necessary adjustments now.
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