What is SAP S4 HANA? Why you should move to SAP S/4HANA?

Aspire Techsoft Academy
8 min readMar 20, 2023

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Why you should move to SAP S/4HANA

What is SAP ECC?

SAP ECC is the Central Component of SAP ERP. It is also known as SAP Enterprise Planning. SAP ECC is one of the SAP Legacy Applications designed to operate on third-party databases like MSSQL, Oracle, IBM DB2, and SAP HANA. SAP ERP consists of several modules that provide organizations with better control over their key business processes. These modules can communicate with each other and create a fully integrated solution for customers in any industry sector.

SAP ECC is the system that most companies have and is familiar with as the more commonly used module that covers finance, HR resources, logistics, and warehousing.

SAP ECC also includes modules like material management, production planning, sales and distribution, financial accounting, plant maintenance, programming, logistics, and supply chain management for manufacturers.

SAP ECC is included among the core products in the SAP Business suite. SAP Business Suite is a group of applications that perform essential business-related functions, which support managing business processes in various industries. SAP Business Suite supports the following operations. Financial accounting, procurements, Production Planning and development, sales marketing, human resource, information technology, services, supply chain management, etc. The SAP Business suite goes beyond the basic modules and supports complex functions such as supply chain management (SCM) and customer relationship management (CRM). SAP ECC, SAP Business suite can run on third-party databases such as MSSQL, IBM DB2, SAP HANA, and Oracle.

SAP ECC is the most commonly used ERP software; things will change in the future as SAP ends its support for ECC 6.0 in 2027. As SAP ECC is reaching its end, a practical modern way to leverage the exceptional solutions in SAP is to migrate to SAP S4 HANA.

SAP Products are –

# SAP HANA and SAP S/4HANA Cloud

# SAP Commerce Cloud

# SAP Ariba Strategic Sourcing Suite

# SAP SuccessFactors Employee Central

# SAP Business Objects BI Suite

# SAP Analytics Cloud

# SAP Concur Expense Suite

SAP ECC Include Core Components are-

# Sales and Distribution (SD)

# Materials Management (MM)

# Plant Maintenance (PM)

# Production Planning (PP)

# Financial Accounting (FI)

#Controlling (CO)

# Human Capital Management (HCM)

# Quality Management (QM)

# Customer Services (CS)

# Project System (PS)

SAP Technical and functional Modules

What is SAP HANA?

SAP HANA was launched in 2010 and is used by thousands of customers worldwide. SAP HANA serves as an application server for analytics, data structuring, and data integration capabilities for all types of databases and supports insights and applications on real-time data, in-memory platforms, artificial intelligence, and machine learning technologies across the organization. This method is available both in the cloud and on-premise. SAP HANA facilitates data structuring and improved workflows for users in the industry to increase productivity, provide real-time visibility, and leverage analytics.

What is SAP S/4 HANA?

SAP S/4 is the fourth generation of the SAP Business Suite, a high-performance analytic appliance. SAP S4 HANA improves business processes by analyzing large amounts of data in real-time using technologies such as artificial intelligence and machine learning and automation to improve business efficiency and speed.

SAP S/4 HANA is SAP’s advanced business suite designed to help you navigate the digital and networked world. SAP S/4 HANA is the fourth version of the SAP Business Suite and runs only on SAP HANA. To leverage the performance and enable the data model in HANA, SAP has created a new SAP ERP solution (SAP ECC) in S/4 Hana and launched it in 2015. It uses SAP Ui5 (Fiori) as well as several applications to optimize business processes in the organization.

Using SAP S/4 Hana you can perform real-time business operations in the organization from anywhere. Many changes are coming to SAP After 2025 SAP ECC will move completely to S/4 HANA. Many revolutions are coming to SAP After 2025 SAP ECC will completely move to SAP S/4 HANA.

The Latest Version of SAP S4 HANA is SAP S/4HANA Cloud 2111: November 2021 and SAP S/4HANA Cloud 2202: available February 2022.

The Difference between SAP HANA and S/4 HANA

Whereas HANA is a cloud in-memory database designed to handle massive analytics on a specific system. SAP HANA serves as the best platform for ERP software.

SAP HANA is the in-memory database technology that powers the SAP landscape. S4 HANA is a business suite launched as a next-generation ERP specifically designed to run on the HANA database (HANA is the Database, not an application). That is, the key difference between HANA vs. S/4 HANA is that one is a database and the other is an ERP suite that runs on its database. SAP S/4 HANA is the application that works on Hana Database.

The Difference — between SAP ECC and SAP S/4 HANA?

SAP ECC is the ERP system and SAP HANA is the in-memory database, designed to handle transactions and analytics. HANA was originally designed to be a data warehouse, but it has grown into an all-in-one data platform that manages analytical, transactional, and application development.

SAP plans on terminating its maintenance support for SAP ECC in 2027 so SAP customers will be required to move to S/4HANA. For most companies, it’s an expensive and lengthy undertaking, often spanning years.

The Differenc SAP ECC and SAP S/4 HANA?

SAP ECC is an ERP system and SAP HANA is an in-memory database designed to handle business transactions and analytics. HANA in particular, originally designed as a data warehouse, has evolved into an all-in-one data platform that manages transactions and application development. In the future SAP ECC will be completely moved to S4 HANA so SAP customers need to work on S/4 HANA.

Core differences

# Built-in Functionalities

# Database Architecture

# Global Trade Functionalities

# Customizability

# Deployment Options

# Cost of Implementation

New Features in SAP S/4 HANA

# ACDOCA: The Universal Journal

# MATDOC Inventory Management

# The SAP HANA Cloud Database

# Advanced ATP (aATP)

# Global Trade Services (GTS)

# FSCM Credit Management (financial supply chain management)

# Extended Warehouse Management (EWM)

# Revenue Accounting and Reporting (RAR)

# SAP Fiori User Interface

Why you should move to SAP S/4 HANA?

Many enterprise businesses are adopting SAP cloud-based S/4 HANA with their own cloud journeys. SAP’s decision to end support for ECC and Business suite applications by 2025. So SAP S/4 will join the journey of HANA. There are many benefits of using SAP S/4 HANA Cloud apps, and S/4 HANA will enable digital transformation to achieve the company’s strategic business goals.

SAP S4 HANA Migration will bring business benefits across industries and transform business processes, increasing business value through improved insights into data. Of course, organizations that handle sensitive data and companies concerned with data security can still choose to use on-premise ERP (Enterprise Resource Planning) instead of the cloud.

Another benefit of SAP S/4 HANA is that it can open doors to emerging technologies such as AIML (Artificial Intelligence and Machine Learning), Big Data, blockchain, IoT, etc.

Benefits of Moving to SAP S/4 HANA?

SAP S/4HANA transformation is now less of a choice and more of a necessity. This is because SAP is planning to end all support for older versions of their product by 2027. The benefits of S/4HANA transformation are numerous; these include a better user experience, improved performance, and reduced total cost of ownership–among many others.

# Improve Your User Experience: In S/4 HANA, it was redesigned to better represent business processes and upgrades in SAP. Also, you can use business processes in SAP on devices like iOS and Android using user interfaces like SAP UI5 Fiori and HTML5.

# Innovation your Business: In SAP S/4HANA, future innovation technologies will evolve rapidly. Applications speed and database accessibility will be faster than ever in SAP s4 HANA.

# Extend Your Flexibility: SAP S/4HANA offers innovative products to various software vendors using cloud technology to provide a platform that extends the functionality of S/4HANA.

# Increase Your Sustainability: SAP S/4 HANA in-memory Technology works more efficiently with less storage. So data impression is less s4 Hana maintenance cost saving.

# Correct forecasting: SAP S/4 HANA uses technologies like embedded artificial intelligence and machine learning to improve current and future forecasting results.

# Gain insights into any real-time data: If your organization needs a report on the current business process which takes a lot of time, then using in-memory technology in SAP S4 HANA you can get data faster. Also, data is loaded from one location to another 10 times faster from the S/4 HANA setup. That means you can process real-time data it does not take time for business efficiency and decision-making.

# Faster Analytics insights: SAP s4 HANA uses smart data design to reduce tables and increase efficiency. Also provides a core sap ERP system. You don’t need to store your data in the warehouse, the data is loaded manually.

# Scalable solutions: In today’s world of competition no industrial business is stable and in today’s market competition is very high in every business. As your business needs grow and your business grows, you can scale up your S/4 HANA Solution. In short, there is basically no limit to the large amount of data that the SAP Business warehouse can have and it has a high level of configuration such as 168TB RAM or more.

SAP HANA has dynamic operations. Frequently accessed data resides in memory, while less frequently accessed data moves to disk when space is low.

Who uses SAP S/4 HANA?

# Information Technology

# Insurance

# Manufacturing

# Oil and gas

# Consumer and industrial product sales

# Financial services

# Retail

# Public services and utilities

# Transportation and logistics firms

# Energy and Natural Resources

# Chemicals Industries

# Pharmaceutical Industries

# Automotive Industry

Conclusion –

SAP is the world leader in Top ERP (Enterprise Resource Planning) software. Recently the new version developed by SAP is SAP S/4 HANA. The main difference between SAP ECC and SAP S/4 HANA is that HANA is a cloud-based system that provides services to organizations through SAP ECC in the cloud instead of on-premise. SAP ECC will be fully migrated to S4 HANA in the future.

To survive in the industrial competition in today’s digital world, companies across the industry need to rely on Enterprise Management software to maintain operational performance and keep pace with the changing market trends.

Currently, SAP ECC and future SAP S4 HANA are both widely used ERP systems and benefit all types of industries. SAP S/4 Hana is a next-generation ERP system designed to meet the growing needs of organizations of all types in the age of digitization.

SAP S4 HANA Migration will bring business benefits across industries and transform business processes, increasing business value through improved insights into data. Of course, organizations that handle sensitive data and companies concerned with data security can still choose to use on-premise ERP (Enterprise Resource Planning) instead of the cloud. If you feel conflicted between SAP ECC vs SAP HANA, discuss with an experienced partner who can help you make the best choice for your organization. For this, Enroll in one of the most recommended SAP S4 Hana Training with Placement Institute in Pune that offers a hands-on practical approach with implementation on live projects and will ensure the job with the help of advanced-level SAP Training in Pune. Here SAP S/4 HANA Course Training in Pune provides career guidance to reach your dream job. But your job will be based on your performance in the interview and the recruiter’s requirements.

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