SAP S4 HANA

New release of SAP S/4HANA
SAP S/4HANA is an ERP system that is used to manage a company’s resources in real time. What exactly is an ERP (Enterprise Resource Planning) system: it is software for enterprise resource planning.

S/4 Hana jes system is based on an in-memory database – SAP HANA in-memory. An in-memory database means that all data is stored in RAM. Thanks to this model of data storage – the system does not waste time loading data from the hard drive into RAM. This technology provides faster data access to multi-core processors for information processing and analysis.

The solution offers a significantly simplified data model and speed. Analytical and transactional processes take place on the same database – with no separation of OLTP (transactional processing systems) and OLAP (information processing using a multidimensional database) processing. An additional advantage is its ease of use, thanks to the SAP Fiori interface. Moreover, SAP S/4HANA can be deployed locally or in the cloud (S/4HANA Cloud).

What is SAP and what does the name mean?

SAP – is a German information technology company founded in 1972. The name SAP is an acronym for the English words: Systems Applications and Products in Data Processing meaning: systems , applications and products in data processing.

SAP Hana, on the other hand, is an acronym for the words: High Performance Analytical Appliance, or High Performance Analytical Appliance.

Main SAP S/4HANA licensing models

Among the available license models, we distinguish:

public cloud,
private cloud,
on-premise.

Public Cloud – Software is 100% managed by SAP as a “cloud provider,” and updates are automatically sent to systems according to a schedule defined by SAP with a tightly controlled configuration and extension framework.

Private Cloud – The software is 100% managed by SAP as the “cloud provider,” while update schedules are agreed with the customer, some software modifications are allowed, but they may increase the startup fees.

Onpremise (On Premise) installation – the software is installed and run by the customer (sometimes this is done by an outsourcing provider or hosted by a service provider). In this model, we can have as many modifications as we like – but they will increase the cost of ownership because each modification must be included each time an upgrade is applied.

What are the migration models of SAP R3, ECC to S/4 Hana

In case the customer has earlier versions of the product:

ERP Central Component (SAP ECC),
SAP R/3,

There are several scenarios for migrating to the latest version of S/4 Hana:

      1. implementation from scratch - “greenfield”.

This migration involves remodeling the current processes in SAP ECC, R/3 to meet the new needs of companies. Recommended especially for customers who want to transform their processes and return to the standard features and best practices of SAP S/4 Hana.

      2. system conversion - “brownfield”

Migration of the SAP ECC 6.* system connected to any database to SAP S/4HANA – while maintaining the existing configuration and historical data

      3 Selective data transfer

This scenario allows you to estimate the scope of data conversion and new implementation – the possibility of flexible data customization.

Recommended migration scenarios depending on the S/4 Hana licensing model adopted
The choice of SAP R/3 to S/4 Hana migration scenario has an impact on the type of licensing of our system.

The table below shows the recommended migration scenarios depending on whether we have an on-premise installation or the SAP S/4 Hana environment is installed in a public or private cloud.

      What benefits will SAP S/4HANA bring us?

The new system offers us faster execution of business processes and a simpler IT infrastructure, as well as advanced operations that will definitely facilitate real-time decision-making. SAP S/4HANA is designed to be able to incorporate additional (add-on) elements. What’s more, many of them are also incorporated directly into the standard, which allows efficient administration management, increases system reliability and reduces hardware and interface configuration costs.

Another benefit is that there will be no need to separate products into separate SAP systems, such as a separate EWM warehouse management system, a separate sales system, or a separate APO demand planning system.

      Change for the better in reporting

One of the advantages in reporting is the simplification of the system and a move away from the complex data structures that have been created over the past several decades. Such a change has a positive impact on the properties of the new system and significantly increases efficiency. One example is

financial planning
budget approval
creation of financial reports
control over the implementation of the budget

With SAP BPC, it is possible to automate planning, budgeting, the calculation process or the preparation of reports, which translates into a reduction in the time spent on closing financial statements and reports.

SAP BPC can be integrated with third-party applications, supports the import and export of data from other ERP systems and is particularly effective when combined with other SAP products.

What benefits will SAP BPC bring us?

It is an all-in-one tool for financial processes such as planning, forecasting, budgeting and reporting.

Intuitive interface, ability to use all popular business tools.

Combined with SAP Analytics Cloud , it brings advanced planning, data visualization and scheduling to a new level.

It is embedded in SAP S/4HANA, so you can access all data in real time.

How will the working experience change ?

SAP S/4HANA has introduced a completely new user interface in the form of the SAP Fiori application (HTML5). However, in many areas, the user will be able to keep the existing SAP GUI interface and move to new transactions, one that does not require the installation of additional client software (using a browser).

The SAP S/4HANA system offers support and maintenance for the following domains:

Resource management
Finance
Production
Research and development
Sales
Customer service
Supply source identification and procurement
Supply chain

Authors
Krzysztof Jasiński – ERP system administrator
Dawid Kukiełka – SAP APO Consultant