What is SAP S/4HANA, and How is SAP S/4HANA different from SAP ECC?
What is SAP ECC?
SAP ECC which stands for SAP ERP Central Component is the previous generation of SAP’s enterprise resource planning software. SAP ECC has multiple modules linked together into a single, customizable system which can be run on a database of the user’s choice. An organization using SAP ECC would be able to optimize its business operations across Finance, Logistics, HR, Product Planning, and customer service.
SAP ECC is heavily modular. Businesses can use the pieces they need and configure the pieces as required by their landscape. SAP ECC can also work with third-party or customized applications on a customized technology stack. However, this flexibility brings complexities. Since each part of the landscape interact with one another, a change in one part can and will affect how other parts function. Therefore, it is important to meticulously test your landscape before rolling out any change such as enhancements, add-ons, customizations, or upgrades.
It is also important to know that SAP ECC has reached the end of the line. SAP is planning to end support for SAP ECC by 2027. They are already in the process of phasing out ECC and are promoting the move for SAP ECC users to SAP S/4HANA.
What is SAP S/4HANA?
SAP S/4HANA is short for SAP Business Suite 4 SAP HANA. It is the latest ERP offering from SAP and is based on the SAP HANA in-memory database to help organizations execute transactions and analyse business data in real-time. It is the fourth version of the SAP Business Suite and is designed to run only on SAP HANA.
With a refreshing user experience powered by Fiori, embedded real-time analytics, and HANA powered in-memory processing to handle large data volumes of operational and transactional business data, SAP S/4HANA is intended to help organizations run simpler and faster with better efficiency. In addition, SAP S/4HANA solves batch latency, manually driven processes, data sprawl – problems which have been present in traditional ERP systems.
SAP views SAP S/4HANA as one of its flagship products and is heavily pushing it to be the successor for SAP ECC. As of December 6, 2019, SAP intends to stop supporting SAP ECC by 2025. As discussed before, they are promoting SAP S/4HANA as the go-to solution for existing SAP ERP customers and are hoping to move the 40000+ SAP ECC users to SAP S/4HANA by 2025.
What are the key business benefits of moving to SAP S/4HANA?
SAP S/4HANA is a revolutionary new ERP which relies on the in-memory computing powers of the SAP HANA database, simplified data models, and a refreshingly new user experience. Some of the key business benefits are –
- Simplification of business processes to drive them in real time by eliminating background jobs and aggregate tables
- Improved performance planning, execution, report generation, and analytics based on live business data
- Triggered period closing and improved business predictions
- Simplification of the entire IT landscape
- Reduced total cost of ownership
- Reduced data footprint
- Ability to work on large data sets in one system – thus saving hardware costs, operational costs, and time
- Innovation with the help of an open platform to drive advanced applications which can help to predict, simulate, and recommend business operations while also safeguarding existing investments
- Rethinking, reengineering, and reinventing of business processes
- Faster decision making with real-time insights on business data
- Ability to reach customers through any channel for delivering value
- Improved revenue and profits through faster and better business operations enabled by speed, context, and data accessibility
It is clear why SAP is pushing SAP S/4HANA as one of its primary ERP offerings, why SAP ECC will no longer be supported after 2025, and why SAP ECC users should move to SAP S/4HANA., isn’t it? So, now, let’s see what are the first steps in moving from SAP ECC to SAP S/4HANA?
What is the first step for moving from SAP ECC to SAP S/4HANA?
Building a coherent business case is the first step for any SAP ECC to SAP S/4HANA transition. It is important to build the business case well ahead of the move – at least a year in advance. Waiting will have you pay the cost of indecision, higher S/4HANA license costs, and a rushed S/4HANA migration which carries a high risk for failure. While building the business case for S/4HANA, identify where you are going and what you will get by going there. Focus beyond savings to understand innovation, value, and the business and IT benefits. It is also important to discover the scope & scale of the project activities.
But, how can you ensure the right budget, effort, expertise, man-hours, project plan preparation, and project execution? You can always get in touch with Iteanz Technologies for more information to take-off with S/4 HANA.
Stay tuned for more insights on Iteanz’s Blog
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