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What's SAP S/4HANA?
SAP S/4HANA is the business application suite specifically designed for HANA. This software is designed to manage large companies' day-to-day operations, such as order-to-cash, plan-to-produce, and request-to-service.
SAP S/4HANA marks the end of the traditional transactional system.
It aims to provide users with real-time decision-making assistance based on both internal and external information sources.
The new business suite was released for the first time. SAP began to phase out its older ERP products in order to make S/4HANA its flagship product.
Businesses can now create specific functionality tailored to their industry using the new ERP suite.
SAP HANA, an in-memory database management software, and S/4HANA are the ERP suites designed to integrate with it.
Although they aren't exactly the same, both SAP products have been created to integrate. Both products are part of SAP's main product range, which aims to provide the most recent generation of products for businesses around the globe.
Unmatched Benefits of SAP S/4HANA
SAP S/4HANA is unique in its structure. It is not like traditional relational databases. It works in memory and stores data in columns.
This allows for fast, near-real-time analysis and computing capabilities.
This article will outline the main benefits or value-added features SAP S/4 HANA provides to customers.
Simplification
SAP S/4HANA is a significant improvement in the management and administration of your IT environment. The interface is simple and one of the key attributes SAP added to the ECC Application Structure.
SAP S/4HANA allows for centralizing network and hardware resources. It's the digital heart of business process reduction by using the HANA memory-based database.
Cost Effectiveness
If cost efficiency is important, S/4HANA adoption is a great decision. It allows you to integrate multiple systems' transactional as well as analytical capabilities into one system.
This can greatly improve decision-making.
Actual Tables
S/4HANA can simplify the data model for Finance, Inventory Management, and other areas. One table is used for Finance, i.e., ACDOCA.
Only one table is used for Materials Documents (i.e., MATDOC). Ability to aggregate on-the-fly: This allows you to aggregate on the fly.
This simplifies the data structure and makes accounting more flexible in the long term because it is not limited by the number of fields that are included in the total records.
Significant changes were made in the way transaction data is stored within SAP S/4HANA for financial and accounting purposes.
This greatly improves the ability to align internal and external reporting requirements. Accounting is now more flexible.
Planning Table
Starting with SAP S/4HANA 16,10, it's possible to record planning outcomes stored in the ACDOCP Table. It is the same structure as ACDOCA (the general Journal) and has the same structure.
Comparing entries from both tables will allow for plan/actual reporting. Integration with SAP Analytics Cloud can also be done through the table being created, master data, and reference data.
It can be sourced via SAP S/4HANA, then SAP Analytics Cloud.
Innovation
SAP S/4HANA, one of the SAP products SAP is offering to help businesses adopt cloud-based services, is one example.
Cloud technology allows software companies to create innovative products and improve the capabilities of S/4HANA.
Although it is difficult to choose between traditional SAP ERP solutions, S/4HANA by SAP is an essential product for executing business in today's complex and evolving business environment.
Cons of S/4HANA
Data Issues
Older systems are prone to incorrect data and other data issues. Problems are most often caused by a mismatch between older and newer formats.
There are many options available to minimize integrity concerns. This issue can be solved by confirming data using a subset, sampling, or complete record-by-record analyses. Another option is to start from scratch and limit data migration.
This is not feasible for large companies with huge data repositories. It is useful for new or small companies. The complexity of a transition to SAP S/4 HANA depends on the enterprise's size.
Customization
A system that is custom designed is like a comfort zone. It is a place where everyone feels challenged to get out.
This is particularly true for older techniques that were specifically tailored to your business's needs. It can be difficult to integrate the new system with customizing. It is important to remember that it takes perseverance, determination, and a lot of persistence to make it happen.
SAP consultants can assist you in making customizations to S4HANA products that will help you define a new strategic direction for your company and provide a future outlook.
Knowledge
Proper planning and execution are key to the successful implementation and migration of S/4HANA. Around five percent of IT executives admit that they don't have the skills to successfully manage SAP S4/HANA migrations and rollouts.
This issue can be solved by outsourcing support for companies that provide SAP consulting services. SAP BPC Services can help you find the right IT provider for SAP S4/HANA migration and implementation.
What's SAP ECC?
SAP ECC stands for SAP ERP Central Component.
It is also known as SAP ERP. It is one of the older SAP applications that was originally developed to work with a third-party system,
SAP ECC is the system most companies use and are comfortable with. It has the most common modules, such as financials, HR (HR), warehouse management, logistics, and warehousing.
SAP ECC has modules for manufacturers that include Production Planning and Materials Management.
SAP ECC, the core product of SAP Business Suite, should not be confused or misunderstood with SAP Business Suite.
SAP Business Suite includes more than the core modules. It supports complex functions such as Supply Chain Management (SCM) and Customer Relationship Management (CRM). SAP Business Suite, like SAP ECC, can be run on third-party databases such as MSSQL or SAP HANA.
SAP components are also called modules. They are part of the ECC program. They are specifically designed to accomplish specific business tasks.
SAP ECC contains ten core components.
It is necessary to install the component in order to access its functions. You might want to make sure that your components are connected to maximize performance.
App developers can help ensure that your components are properly implemented and integrated.
Remember that not all SAP ECC components are required by every business. Some companies may only require certain components, while others might need all 10.
These are the ten components of SAP ECC:
- Distribution and sales (SD)
- Materials Management (MM)
- Financial Accounting (FI)
- Production Planning (PP)
- QM stands for Quality Management (QM)
- Controlling (CO)
- Services for Customers (CS), Services (CS)
- Project System (PS)
- Plant Maintenance (PM)
- Human Capital Management (HCM)
SAP ECC or HANA
SAP ECC, which is basically an ERP system and the foundation of the Business Suite, can be described as HANA as an information system.
HANA is an in-memory data store that allows you to manage all your transactions and analytics from one location.
It was originally designed to be used in data warehouses and data marts. However, HANA has evolved to handle all aspects of data platforms, including transactions and analytics.
SAP ECC integrates digital data into several, but equally important -- parts of a company's database system. The SAP ECC system is on-premises, but users can also deploy HANA cloud-based or on-premises.
SAP will cease providing maintenance services for SAP ECC in 2027. Customers will have to migrate to S/4HANA by 2027.
This can be costly and time-consuming, but it can take many years.
What's SAP HANA?
SAP HANA, an in-memory computing database, is designed to speed up SAP processes and applications. HANA innovations in design, such as memory and a simpler structure, increase performance.
This results in greater productivity, real-time transparency, and better use of analytics. Businesses can react to market conditions with current data rather than only relying on quarterly reports. SAP HANA is able to analyze real-time data nearly instantly.
This allows companies to react faster to environmental changes, which can lead to significant strategic advantages.
HANA is the back end that runs this SAP landscape. It is a column-based Relational Database Management System (RDBMS) that manages, stores and retrieves information about core business operations.
SAP HANA doesn't define the tasks that an organization does. It can still handle all types of information. HANA can be used by businesses to install applications, such as SAP-based financial, HR, and logistics apps.
Companies must decide which software best suits their needs.
SAP is unique from other RDBMS. HANA reduces memory usage by 10% and increases efficiency thanks to its column-oriented storage.
This storage combines OLAP/OLTP into one structure. SAP HANA's layout can significantly improve the speed and efficiency of Online Transaction Processing (OLTP) and Online Analytical Processing (OLAP).
The majority of databases' data can be saved directly to the disk. This results in very little storage space. Hard drives are slow and can only recall information at a slower speed.
The Pros and Cons Of SAP HANA
HANA can not only process data and memory but also quickly processes information. This type of SAP is very useful for business people who need immediate information.
SAP HANA offers many benefits that companies can realize, such as:
Application Development
Independent or in-house developers can use HANA for a personalized and unique experience that is tailored to each user.
This can be combined with analytics technologies, future gem transactions, and cross-devices. This will give you the best performance.
Easier Data Access
The SAP Hana platform also offers more detailed and accurate data that can be used to assist businesses. The company you manage can grow quickly using all sources of data, internal and external.
High-quality data increases confidence and makes it easier to make these decisions. HANA could be more useful in integrating, replicating, and looking for data that has already been used.
Administration
HANA's final benefit is its simplicity. This allows users to spend more time on processes and improve and increase efficiency in their company.
HANA allows you to monitor applications' security and data security. This will ensure that data is always available.
Process Analysis
SAP HANA's other benefit is its ability to solve business problems and ensure that decisions are made in a way that is appropriate to meet business challenges.
An analytics procedure can access the SAP HANA memory capacity to store all data, such as graphics, text, space streaming, and time.
Database Service
All businesses, big and small, understand the importance of maintaining and managing databases. HANA is a database container that has a larger storage capacity and can be dynamically managed.
Cons of SAP HANA
- SAP HANA Cloud is compatible with SAP-certified equipment.
- Hardware compatibility issues are a major reason why SAP HANA is a costly investment for most users around the globe.
- SAP HANA cannot be used to replace all ERP products as they are built on different business architectures. ERP users will need to modify the business architecture to make HANA compatible with other ERP systems.
- SAP HANA versions have more frequent updates and releases from SPS, which makes it harder to purchase every update. Updates are also long-lasting.
- SAP HANA servers automatically shut down in the event of excessive data processing or calculations under a heavy data processing load.
HANA vs. S/4HANA
S/4HANA is the ERP system. HANA acts as the running data source.
S/4HANA was specifically written to run on HANA memory databases. HANA memory database cannot be used with other databases.
SAP introduced S/4HANA. Many users consider it the next generation of SAP Business Suite. S/4HANA was specifically designed to solve more complex problems and handle larger data volumes than its older counterparts ECC SAP, and R/3.
It can be accessed on-premises as well as online in the cloud.
Although S/4HANA is a product of HANA, they are completely different. HANA is an in-memory database platform that can be used to develop applications.
HANAs in-memory computation databases mean that users don't have to spend time loading or writing data. HANA's in-memory computation databases allow developers to create and run custom applications.
Read More: Why Choosing SAP S/4HANA Cloud ERP is an Intelligent Investment?
What is a Business Suite?
More than simply, the SAP HANA database for ECC is utilized by Suite on HANA. ECC is installed on the SAP HANA backend system by SoH.
As a result, you may benefit from SAP HANA's performance improvement without having to change the way the application layer is organized. They don't need to become used to a new system. Business Collection Suite functions more quickly on SAP HANA since it operates inside the memory element.
The way that ECC capability operates on a database or hard drive is the same. The majority of SAP transaction codes are found in SoH. Nevertheless, data simplification does not exist. Moreover, SoH provides enhanced transactions that improve performance.
Suite for HANA Data Structure and Architecture
A front-facing web server is part of the multi-tiered architecture of the SAP HANA Platform. The web server is capable of running ECC apps, cloud apps, mobile IoT apps, APIs, and more.
On JavaScript, SQL scripts, and SQL code, the web server is built. This layer serves as the database's front end. Using columns, SAP HANA is a Relational Database Management System (RDBMS).
Due to its columnar nature, HANA can do some tasks more quickly than conventional databases.
Suite for HANA Migration
The suite for HANA will still be supported and updated by SAP. This gives you the flexibility to organize your S/4 upgrade or SAP HANA migration in a sensible way.
Preparation can enhance strategic advantages and reduce annoyances. In HANA, switching between databases is fairly simple. You must upgrade to ECC6 Enhancement Pack 7 first. After that, you can migrate your current database over to HANA.
Typically, it is technical work that is simple to do with a reliable technical partner.
Members of ECC can migrate to S/4HANA first or to SAP Business Suite for HANA second. The database and tables will need to be transformed into SAP HANA's columnar structure.
It is necessary to get rid of collected tables and unnecessary indices. Any new or customized programs must also be examined. Due to new HANA features, some apps might not be required, while others could require modification to perform with the new backend.
For the SAP Business suite on HANA or S/4HANA, backend modifications are necessary.
Every ECC functionality can be supported by SAP HANA. To make sure everything functions well, however, great SAP Basis support, a lot of testing, backups, and probably some post-go live tweaking are needed due to the database's unique structure.
If your organization utilizes legacy servers or customized apps, complex things may also happen. You can choose the most effective conversion strategy for complicated ERP infrastructures to HANA with the aid of SAP HANA migration experts.
In most situations, HANA functionality can replace the need for custom programming.
It will still be necessary for businesses to update and improve current applications. Also, they will require more training on S/4HANA updates and apps.
Optimizing an organization's ERP environment, such as by combining multiple SAP HANA Business Suite Systems or converting legacy systems to HANA, can also be advantageous. The projects become more difficult as a result.
Expertise
It's important to keep in mind that inadequate hardware sizing will result in slow system reaction times and general underperformance.
The SAP Quick Sizer is an excellent place to start, but in order to lock down the ideal hardware configuration, it's crucial to study the Quick Sizer data and perform further calculations.
The proportion has extensive knowledge about properly sizing landscapes. We can assess the SAP ecosystem in businesses of any size and in all sectors for the following:
- Key performance indicators for average and peak loads Disk needs.
- Use information for software deployments.
- Additional KPIs measure data throughput, storage system latency.
- Input/output effectiveness, and database startup times.
Making the Choice
Every business is unique, and the road to SAP Business Suite depends on your particular needs. S/4HANA Business Suite is frequently used as a starting point by SAP ECC users before moving on to S/4HANA.
S/4HANA gains a lot of significant advantages from SoH. It is less hectic, easier, and cheaper. High-performing businesses may be able to upgrade their complete S/4HANA system at once and profit from S/4HANA.
We advise businesses to upgrade to SAP S/4HANA from non-SAP or outdated systems. There is no advantage to moving to SAP Business Suite on HANA because they will already be developing and migrating to new systems.
It's crucial to take into account your company's perspective on cloud computing and IT infrastructure changes. If your business is wary of managing significant IT activities, switching directly from SAP ECC to S/4HANA is a viable alternative.
Despite the difficulty, you can do it in a single step.
Get the Best Out of S/4HANA
While converting to ERP HANA, choosing the proper business partner is essential. By lowering costs and minimizing disruptions, we can help you get the most out of your SAP investment.
This includes helping you decide between SAP Business Suite HANA and S/4HANA, planning and carrying out an SAP HANA migration, and fine-tuning and operating your SAP HANACloud after it has gone live.
What SAP Solutions are Available for You?
SAP solutions are available for many industries, including Finance, CRM, and network.
Digital supply, human resources, business technology, industry, and other areas are just a few.
Below are the details for each.
Finance
Enterprise resource planning offers financial reporting options. Based on inventory management and control, cash flow estimates are included in these reports.
These reports can be used to verify duplicate entries, as they are automatically generated.
SAP FICO is a tool that allows large enterprises to prepare and manage financial statements. It produces reports and allows for the examination of decision-making processes.
Customer Experience
A CRM (Customer Relations Manager) is a tool that allows businesses to understand their customers and respond to them with quality management.
With the help of an SAP CRM system, workflows can be simplified and knowledge exchange can be made more efficient.
It improves account management and allows businesses to meet customer needs. Experts can also be referred to as CRM (customer relation management) consultants. This professional is skilled in both customer relationships and flagship CRM software.
Network and Expense management
Spending management is the art of managing supplier relationships and purchasing for the business. This allows you to track your spending and optimize it using real-time business statistics.
SAP automates the entire process, increasing productivity. The ability to track what was brought in, who brought them, and how much it helped lower supply costs as well as risk.
The Digital Supply Chain
Digital Supply was also created by the adoption of digital technology. SAP eliminates the need to use paper with its end–to–end connectivity.
It eliminates the need for manual data entry, making it reliable and simple.
It is evident that the IoT market is growing rapidly. IoT consultants are in high demand. They can help businesses convert their existing items into connected things in order to take part in global innovation.
Human Resources and Staff Interaction
SAP doubles as HR and helps with organizational administration. It also keeps attendance records. It helps verify payroll accurately and ensures compliance with HR policies.
It increases productivity and employee engagement.
Experience Management
Solution company's experience Management aids in keeping track of customer-company interactions. It enhances customer interaction with businesses and helps them to identify areas for improvement.
It reduces the distance between customers and businesses.
Business Technology Platform
The SAP Business Technology Platform offers data and database management, analytics tools, and intelligent technologies.
This platform allows businesses to respond quickly to market developments.
Digital Transformation
SAP data intelligence offers cutting-edge artificial intelligence (AI), machine learning capabilities, and technology.
It helps organizations and businesses reinvent themselves to meet customer needs.
Small and Medium Businesses
Learning centers of small and medium size organizations will likely face many obstacles. These include cash flow and supply chain management.
Employee engagement is another. These businesses can use SAP to help them understand market trends. It also allows them to make leadership changes and redesign their product branding.
Solutions for Industry
SAP also offers over 25 solutions that can be tailored to specific industries and may help businesses with their memory layer.
This gives businesses a complete picture of specific industry business processes. These include Finance, high-tech, insurance, and aerospace and defense deployment.
The Key Takeaway
SAP HANA was launched with many functional improvements, making it an attractive upgrade to SAP ECC. Although compatibility packages enable ECC functions to run on HANA, it is unlikely that they will perform at their best.
Existing ECC customers need to understand the differences between the systems and weigh the benefits. This will ensure that SAP HANA has the best ROI.
The business should then be in a better place that allows them to make informed decisions about whether they want to upgrade to SAP HANA or stay in SAP ECC.
