Enterprises optimize their business processes by modernizing applications and moving to the cloud environment. This helps companies to realign their applications to achieve optimum business performance. The Enterprise Resource Planning (ERP) system deployed is no exception.
SAP is a leading provider of ERP software that is trusted by organizations across the globe. SAP ERP versions R/1, R/2, R/3, ECC and S/4HANA have been in use for more than 20 years. SAP ECC ERP is a popular version, with a long track record of performance.
SAP ECC & SAP S/4HANA
SAP ERP Central Component has multiple modules linked together into a single, customizable system that can run on a database and helps optimize all business operations including finance, logistics, HR, product planning, and customer service. Since the application is modular, businesses can utilize the components that they need and accordingly configure their environment.
Enterprises that use third-party or customized applications on a customized technology stack can deploy SAP ECC as it is compatible with these applications. However, the landscape needs periodic testing before rolling out changes, enhancements, add-ons, customizations, etc.
SAP ECC is being slowly phased out and all existing users are slowly moving to the SAP S/4HANA environment as the support for ECC will end by 2027. SAP S/4HANA is short for SAP Business Suite 4 SAP HANA and it is based on the HANA in-memory database. This helps organizations execute transactions and analyze business data in real time.
The user experience is powered by Fiori with embedded real-time analytics, and HANA-powered in-memory processing capable of handling large data volumes of operational and transactional business data. Issues that have been present in traditional ERP systems, such as batch latency, manually driven processes, and data sprawl can be resolved using S/4HANA.
What Stands Out in SAP S/4HANA?
- SAP S/4HANA’s in-memory computing capabilities ensure a simplified data structure that ensures data remains in the RAM and it ensures faster data processing compared to other database types that fetch data from the hard disk.
- This new generation SAP environment combines Artificial Intelligence (AI), Machine Learning (ML) and embedded predictive analytics, conversational UI and other capabilities that open the business to endless possibilities offered by the Internet of Things (IoT).
- Mobility is a major advantage offered by S/4HANA that extends access to the ERP applications from mobile devices in a secure manner.
- SAP S/4HANA is powered by Fiori which offers better personalization tools for front-end users delivering superior and simplified user experiences.
- It enables easy, seamless integration with the existing SAP applications portfolio.
| S/4HANA | SAP ECC |
| S/4 HANA can run on the cloud or on-premise using the HANA database | ECC can run on multiple databases such as Oracle, DB2 etc |
| SAP Fiori Apps are available in S/4 HANA for performing activities and generating reports in real-time. Uses Universal Journal. | ECC uses multiple tables and aggregate tables and hence the process is slower. GUI interface. |
| Uses the new GL only. | Uses classic GL or the new GL. |
| Material ledger is mandatory, and this uses extended warehouse management. | It is optional here and includes warehouse management |
| All foreign trade elements moved to Global Trade Services | Still includes foreign trade elements. |
| Does not support the dual-stack anymore. Uses Kernel 7.73. | Dual ABAP and Java stack is still available. |
| Material number length is between 18-40 characters | This remains at 18 characters |
| The primary data tool is the Legacy Transfer Migration cockpit. | Legacy System Migration Workbench is the primary data tool. |
Real-Time Data Analytics: SAP S/4HANA helps analyze large data sets in real-time, and therefore the business can be assured of rich insights to help make data-driven decisions. In a competitive marketplace defined by customer experience, an ERP environment that empowers teams to use the potential of such data to help deliver personalized experiences to customers will always win. SAP S/4HANA can provide meaningful insights due to its advanced analytics capabilities and AI.
S/4HANA can be integrated with the existing IT infrastructure and applications. It is also compatible with a range of databases. As a result, businesses gain the flexibility to run analytics with ease. With teams getting new analytical capabilities, overall productivity increases.
Scalability: The digital environment requires businesses to respond to a dynamic market where a customer needs to evolve rapidly. Businesses can easily scale their ERP environment using SAP S/4HANA. The solution comes with inbuilt storage optimization using dynamic tiering-this keeps frequently accessed data in memory. It moves rarely used data automatically to disk when storage space runs low. Further, the system of columnar storage and high-efficiency compression substantially ensures a reduced data footprint.
Drives Innovation: Emerging technologies are making headway into the digital strategies of today’s businesses. S/4HANA gives any business a competitive edge with the ability to deploy AI, ML, and a variety of new workloads quickly without affecting the performance of existing applications.
Businesses powered by SAP S/4HANA stand to gain in an ever-changing competitive marketplace. However, enterprises need a reliable partner to enable a smooth transition to S/4HANA. Gemini Consulting & Services can help you plan a holistic migration approach that ensures your business gets the best from your SAP S/4HANA deployment. Contact us to achieve a seamless transition to S/4HANA and improve your productivity.
Key SAP S/4HANA Innovations
- Apart from developments in visuals and analytics, Process Orchestration (PO) is a game changer for businesses that makes connecting any technology and platform with SAP a real-time possibility.
- CFO Solutions, Universal Journal, and Digital Boardroom enhance value in financial analytics.
- Features such as Material Requirement Planning (MRP LIVE), Financial Supply Chain Management (FSCM), and Production Planning and Detailed Scheduling (PPDS) have added the right proportion of information analytics required for the business.
SAP S/4HANA: The Future
Building a sound and synced business structure is the first step for any SAP ECC to SAP S/4HANA transition. While building the business case for S/4HANA, it is critical to understand where the business is heading and what the ultimate objective is.
