An ERP (Enterprise Resource Planning) is an integrated software package for managing all a company's operational processes, such as finance, human resources, production and sales, by centralizing data to improve efficiency and decision-making. Find out more about our SAP expertise.
SAP is a world leader in ERP, offering modular solutions for a wide range of industries. SAP S/4HANA is an advanced version of SAP's ERP, using the in-memory HANA database to deliver optimized performance, process simplification and real-time analytics.
SAP S/4HANA is the latest-generation ERP (Enterprise Resource Planning) developed by SAP. Here's what the components of the name mean:
S : Simple, reflecting the simplicity and effectiveness of the solution.
4 : Represents the fourth generation of the SAP software suite.
HANA : High-Performance Analytic Appliance, SAP's in-memory database platform for much faster data processing and analysis.
SAP S/4HANA offers a comprehensive suite of functionalities for managing the different aspects of a company's operations, from finance to supply chain management and human resources.
Financial Management :
• Financial accounting
• Controlling
• Cost accounting
• Fixed asset management
Sales and Distribution :
• Order management
• Contract management
• Price and discount management
Procurement :
• Supplier management
• Purchasing management
• Order follow-up
Production Planning :
• Production planning
• Inventory management
• Quality management
Supply Chain Management :
• Demand planning
• Supply planning
• Warehouse management
Human Resource Management :
• Talent management
• Payroll management
• Performance management
Analytics and Reporting :
• Real-time analysis
• Customized dashboards
• Financial and operating reports
Project Management :
• Project planning
• Cost tracking
• Deadline monitoring
The difference between SAP S/4HANA and SAP HANA lies primarily in their nature and function within the SAP ecosystem. SAP HANA (High-Performance Analytic Appliance) is an in-memory database developed by SAP, while SAP S/4HANA (SAP Business Suite 4 HANA) is a next-generation ERP suite that uses SAP HANA as its underlying database.
SAP is a world leader in ERP, offering modular solutions for a wide range of industries. SAP S/4HANA is an advanced version of SAP's ERP, using the in-memory HANA database to deliver optimized performance, process simplification and real-time analytics.
In-memory" technology means that data is stored directly in the computer or server's random access memory (RAM), rather than on traditional hard disks. This enables extremely fast data access and processing compared with traditional systems, which require frequent reading and writing to disk.
Here are the major differences between the different ways of storing your company's data:
Data in the cloud : Data is stored in remote data centers accessible via the Internet. This offers great flexibility and scalability, but performance can be affected by network latency.
Data on disk (old SAP version) : Data is stored on mechanical hard disks or local SSDs. Disk read/write operations are slower than RAM access.
In-memory : Data is stored entirely in RAM, enabling near-instantaneous access and very short response times. This is particularly beneficial for real-time analysis and processing of large quantities of data.
Processing data in real time brings many tangible benefits that can transform operations and decision-making within a company. Here are a few practical examples illustrating the importance of this capability:
Greater responsiveness to market changes
• Use case : An e-commerce company can analyze purchasing trends in real time and instantly adjust its promotions and inventories to maximize sales and minimize excess stock.
• Benefit : Reduced lost sales and improved customer satisfaction thanks to rapid response to market trends.
Supply chain optimization
• Use case : A manufacturing company can monitor stock levels, delivery times and supplier performance in real time.
• Benefit : Reduced out-of-stocks and surpluses, optimized storage costs and improved supply chain efficiency.
Improving risk management
• Use case : Financial institutions can detect and react immediately to suspicious transactions or financial anomalies thanks to real-time monitoring.
• Benefit : Reduced fraud and financial losses, enhanced regulatory compliance.
Personalized customer experience
• Use case : Retailers can use real-time data to personalize offers and recommendations based on customers' current buying behavior.
• Benefit : Increased customer engagement and loyalty through relevant and timely interactions.
Optimizing internal operations
• Use case : A company can monitor the performance of production equipment in real time and anticipate maintenance requirements before a breakdown occurs.
• Benefit : Reduced unplanned downtime, longer equipment life and optimized maintenance costs.
Fast, informed decision-making
• Use case : Executives can access updated dashboards in real time to monitor key performance indicators and make strategic decisions quickly.
• Benefit : Improved responsiveness and agility in the face of opportunities and challenges.
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SAP ECC (Enterprise Core Component) and SAP S/4HANA are two different generations of SAP ERP systems. The main difference between them lies in the database used and the associated benefits. Here's a detailed explanation of why SAP ECC used databases from other suppliers, while SAP S/4HANA runs exclusively on SAP's HANA database.
SAP ECC is an older ERP system that was designed to be compatible with multiple databases, including those from Oracle, Microsoft SQL Server, IBM DB2, and others. Reasons for this multiple compatibility include:
• Flexibility for customers : SAP ECC allowed companies to choose the database that best integrated with their existing IT infrastructure. This gave customers greater flexibility to use databases with which they already had licenses and in-house expertise.
• Large Adoption : At the time ECC was conceived, it was common for large software applications to be compatible with several database management systems (DBMS) to maximize their market adoption.
• Database independence : SAP wanted to offer database layer independence, enabling customers not to be tied to a single database technology.
SAP S/4HANA, launched in 2015, is designed to run exclusively on the SAP HANA database. Reasons for this exclusivity include:
• Superior performance: HANA is an in-memory database, which means it stores all data in RAM rather than on a hard disk. This enables much faster read/write speeds, dramatically reducing response times for complex queries and real-time analysis.
• Simplified architecture : By designing S/4HANA to run solely on HANA, SAP has been able to simplify the software architecture. This enables tighter integration between the ERP system and the database, optimizing performance and maintenance.
• Advanced functionalities : HANA enables S/4HANA to use advanced functionalities such as real-time analytics, massive data processing and machine learning capabilities. These functionalities would not be possible or would be less effective on traditional databases.
• Accelerated innovation : By controlling both the ERP software and the database, SAP can introduce new features and enhancements more quickly, without having to ensure compatibility with multiple DBMSs.
Not sure about SAP S/4 HANA integration? Here's a list of criteria to consider before taking the plunge.
SAP S/4HANA is designed to be used by companies of all sizes, from small and medium-sized enterprises (SMEs) to large multinationals. However, due to its cost and the complexity of its implementation, it is often best suited to medium-sized and large companies that need to manage large volumes of data and transactions.
In general, a complete SAP S/4HANA integration can take between 12 and 24 months for a medium-sized to large company. However, for smaller companies or those with less complex business processes, this timeframe can be reduced. Conversely, for very large companies or those with very specific needs, it may take longer.
The two versions of SAP S/4HANA, "On-premise" and "Cloud," offer similar functionality, but differ mainly in the way they are deployed, their flexibility, cost and management. Here's a detailed comparison:
| Aspect | On-premise | Cloud |
| Deployment | Local servers | SAP Cloud Servers |
| Personalization | Highly flexible | Limited |
| Update management | By the company | By SAP |
| Data security | Controlled by the company | Controlled by SAP |
| Cost model | High initial investment + maintenance | Subscription |
| Complexity | High | Moderate |
| Typical use case | Large companies with complex needs | Companies looking for simplicity and scalability |
Whether you're a company looking to implement SAP S/4HANA in Greenfield or Brownfield mode, or a specialist SAP consultant, FocusTribes is here to help. We support companies in the implementation and management of their SAP S/4HANA projects, ensuring a smooth and optimized transition to this powerful ERP. Thanks to our expertise, we can help you make the most of your investment in SAP S/4HANA, streamline your business processes, and improve your operational efficiency. What's more, we support consultants by connecting them with assignments tailored to their SAP S/4HANA skills and experience, ensuring fruitful and rewarding collaborations.