S/4HANA in 5 minutes: Benefits, opportunities and practical example

SAP S/4HANA is the latest ERP platform from SAP and therefore the direct successor to SAP ECC. With its help, it is possible to manage central company areas such as finance, logistics, purchasing and production. Users benefit from faster processes, a cloud-compatible architecture and a modern user interface. A migration from SAP S/4HANA is particularly worthwhile in connection with complex processes, increased reporting requirements and upcoming modernization measures. This option is usually less relevant for small, static applications.

What does S/4HANA mean?

S/4HANA supports companies in managing important core processes. The abbreviation stands for “SAP Business Suite 4 SAP HANA”. The entire system on which SAP S/4HANA is built is based on the SAP HANA in-memory database, which is able to process data in real time and make it available in real time.

In addition, S/4HANA has a modular structure and can therefore be operated as flexibly as possible in a cloud, via on-premises solutions and optionally also hybrid.

Another advantage is that an S/4HANA conversion is usually possible without any problems, as the system can be integrated into existing company processes as easily as possible.

The most important advantages of S/4HANA at a glance

S/4HANA offers its users many different advantages. The following arguments are generally particularly convincing:

1. The system provides real-time analysis and reporting
2. The integrated memory technology ensures that processes can be implemented more quickly
3. S/4HANA is cloud-capable, can be scaled flexibly and therefore usually results in lower IT costs
4. Thanks to SAP support, S/4HANA is considered future-proof
5. A modern user interface creates the basis for intuitive operation

S/4HANA is therefore particularly worthwhile for companies that have set themselves the task of managing complex processes faster, more transparently and more efficiently. Furthermore, this is not an issue that only affects IT. Rather, almost all business areas benefit directly or indirectly from the advantages mentioned.

In which areas is S/4HANA used?

The target group for S/4HANA includes companies that are confronted with a high volume of data and a complex process landscape.

Within these companies, the system is primarily used in the following departments:

• Finance and controlling (including for real-time evaluations)
• Purchasing and logistics (for consistent processes and optimized supply chains)
• Production and supply chain (for faster processes and optimized planning)
• Reporting and business intelligence (as a basis for well-founded decisions)

S/4HANA is not only convincing in the respective areas, but also provides support when it comes to networking these areas and sharing information.

S/4HANA: A look at the technological level

The “heart” of the S/4HANA solution is the HANA in-memory database. Here, data is not processed on hard disks – as was previously the case – but directly in the main memory. This saves users time and allows them to execute processes faster.

Thanks to its modular structure, everyone can decide for themselves whether the system should be used as a cloud or hybrid solution, for example. Another particularly practical feature is that S/4HANA can be easily integrated into existing system landscapes. Nothing should therefore stand in the way of uncomplicated integration.

What does S/4HANA integration mean at an organizational level?

A changeover to S/4HANA affects the entire organization and not just the IT department of a company. The specialist departments in particular are often confronted with the corresponding changes relatively early on.

Special attention should be paid to the following points:

• Assigning clear responsibilities
• sufficient coordination between the various specialist areas
• Pilot projects for gradual introduction
• regular performance reviews

The qualification level: What do companies that integrate S/4HANA need to achieve?

The extent to which the implementation of S/4HANA offers exactly what companies expect depends, among other things, on internal skills. For example, it is important that those who will be working with S/4HANA have expertise in the areas of data management, process analysis and change management.

Without appropriately trained employees, the potential associated with S/4HANA often remains untapped. It is therefore important to train everyone who will be affected by the changes at an early stage.

Various industries: S/4HANA can be used here

Anyone who takes a closer look at S/4HANA and its benefits will quickly realize that the solution can be used in many areas. Especially in areas where integration, transparency and speed play an important role, the question of implementation often arises sooner or later.

• Industry and SMEs often use S/4HANA to optimize production processes, better manage warehouse processes and gain a better overview of financial and controlling structures.
• Companies in the energy sector use S/4HANA to map complex value chains, for example in the areas of grid operation or billing.
• In public administration, S/4HANA is often used to optimize reporting in budget and funding management.

The platform can be configured and expanded as flexibly as possible depending on the industry and company size.

S/4HANA: A look at the effects and opportunities

The use of S/4HANA offers companies many opportunities for the most strategic approach possible.

Because:

• With the help of real-time data provided by the system, it is possible to make faster and more informed decisions.
• Automated processes save time and often reduce costs.
• Cloud models are characterized by convincing scalability and thus support company growth.
• S/4HANA is considered future-proof.
• Digitized core processes ensure improved competitiveness.

The implementation is therefore a good opportunity to make even better use of the advantages of digitalization for your own company and to be able to maintain your position on the market.

What determines the success of S/4HANA?

In order to fully benefit from the opportunities offered by S/4HANA, it is important for companies to be prepared accordingly. If you want to ensure optimal basic conditions here, you should make sure, among other things, that…:

• Define clear goals and create a roadmap
• Maintain its master data cleanly (and keep it up to date)
• Involving specialist departments and users at an early stage
• Plan internal change management and training at an early stage as an integral part of the project
• to start with pilot projects and regularly monitor their success.

S/4HANA in practice

S/4HANA has already been successfully implemented in our KRL G/L accounts project. The initial situation was an existing SAP system. The focus here was on the desire to optimize the account logic in the financial area and ensure greater transparency with the help of real-time data.

Quick glossary: the most important terms explained

ERP:

ERP stands for Enterprise Resource Planning and therefore for software that makes it possible to control central business processes

HANA:

HANA is SAP’s in-memory database that enables fast data processing

Fiori:

Fiori is the user-friendly, role-based interface of S/4HANA

Cloud model:

With a cloud model, hosting takes place via data centers. Data stored here can be accessed flexibly, for example via smartphones.

On-Premises:

On-premises solutions are operated in the company’s own data center.