SAP S/4HANA: An Overview and Key Considerations

What Is SAP S/4HANA?

Enterprise Resource Planning (ERP) has been the cornerstone of SAP solutions since the company was founded in 1972. SAP’s first packaged mainframe software application, SAP R/2, was released in 1979, and was followed by SAP R/3, SAP ERP Central Component (ECC) 5.0, and SAP ECC 6.0. SAP’s current flagship enterprise ERP solution, SAP S/4HANA, was released in 2015, and was a significant shift for the organization as it ran exclusively on the SAP HANA database.

Modules included in an SAP S/4HANA system include: Asset Management, Finance, Human Resources, Manufacturing, R&D/Engineering, Sales, Service, Sourcing and Procurement, and Supply Chain. Each of these modules consist of multiple applications that offer specific features and functionality, as well as industry-specific and enhanced line-of-business functions.

SAP S/4HANA: An Overview and Key Considerations

What Is SAP S/4HANA?

Enterprise Resource Planning (ERP) has been the cornerstone of SAP solutions since the company was founded in 1972. SAP’s first packaged mainframe software application, SAP R/2, was released in 1979, and was followed by SAP R/3, SAP ERP Central Component (ECC) 5.0, and SAP ECC 6.0. SAP’s current flagship enterprise ERP solution, SAP S/4HANA, was released in 2015, and was a significant shift for the organization as it ran exclusively on the SAP HANA database.

Modules included in an SAP S/4HANA system include: Asset Management, Finance, Human Resources, Manufacturing, R&D/Engineering, Sales, Service, Sourcing and Procurement, and Supply Chain. Each of these modules consist of multiple applications that offer specific features and functionality, as well as industry-specific and enhanced line-of-business functions.

Key Considerations for SAPinsiders

• SAP S/4HANA is the solution that SAP wants enterprise ERP customers to be running, but it is about more than simply adopting technology. According to Tom Janoshalmi, the former Global Head of SAP Digital Core Move, organizations need to look at their move to SAP S/4HANA to being about a connected story not just a technology upgrade. While SAPinsider research has shown that many organizations look at SAP S/4HANA largely because of the upcoming end of maintenance for core SAP ERP releases, more see a move to SAP S/4HANA as the opportunity to re-engineer and update processes and configurations. Janoshalmi agrees. He wants organizations to focus on the value they can derive from SAP S/4HANA and what they can achieve moving forward. You can hear more about why the move to SAP S/4HANA is important by reading SAPinsider’s interview with Janoshalmi.
• SAP S/4HANA is the core around which organizations can build their transformed landscape. When Eczacıbaşı Building Products needed to update their existing systems and processes, they looked at SAP S/4HANA as the central part of their update. The overall process involved a complete evaluation of all their current processes and implementing technologies that would increase agility while boosting customer brand experience. SAP S/4HANA was used to connect all the different parts of the business in that process. This article covers more about the Eczacıbaşı project, as does this event session where they discuss their results.
• SAP continues to enhance SAP S/4HANA by including it in RISE with SAP. RISE with SAP is not a new product, but an offering that includes assets that help organizations achieve transformation. The central part of this is SAP S/4HANA Cloud, the software-as-a-service version of SAP’s flagship ERP solution. Damien Johnson from SAP explains in this session what RISE with SAP is, and how it impacts organizations’ existing SAP S/4HANA projects.