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Drivers for accelerating the transition to S/4HANA

Julio de Miguel Calleja
SAP Business Development Director | Linkedin

Evolution from SAP ERP to SAP S/4HANA.

SAP ERP (Enterprise Resource Planning) is a comprehensive solution that many companies have used for years to manage their business processes. However, SAP S/4HANA is the evolution of SAP ERP, designed to take advantage of SAP HANA’s in-memory database technology.

Support for SAP ERP will end in 2027, meaning that companies that do not migrate to SAP S/4HANA will not receive upgrades or technical support. Conducting an early conversion process ensures that companies will continue to receive critical support and upgrades.

An early conversion to SAP S/4HANA not only modernizes a company’s technology infrastructure, but also strengthens its ability to innovate and remain competitive in an ever-changing business environment.

Converting our SAP system to S/4HANA not only modernises a company’s technology infrastructure, but also boosts its ability to innovate and stay competitive in an ever-changing business environment.

Key Differences between SAP ERP and SAP S/4HANA

These are just some of the key differences between SAP ERP and S/4HANA:

  • Architecture: SAP ERP uses traditional databases, while SAP S/4HANA is based on SAP HANA in-memory database technology, enabling much faster and more efficient data processing.
    • User interface: SAP S/4HANA offers a modern and intuitive user interface via SAP Fiori, which significantly improves the user experience compared to the legacy SAP ERP interface.
    • Process simplification: SAP S/4HANA simplifies data structure and business processes, eliminating redundancies and improving operational efficiency.
    • Analytical capabilities: With SAP HANA, S/4HANA enables real-time analytics and advanced predictive analytics and machine learning capabilities.

    As a result of these differences, S/4HANA has the following advantages over SAP ERP, which we will be able to start benefiting from as soon as we complete our conversion process.

    • Improved performance: SAP HANA’s in-memory technology enables extremely fast data processing, improving overall system performance.
    • User experience: The SAP Fiori interface provides a more intuitive and customizable user experience, making the system easier to adopt and use.
    • Integration and flexibility: SAP S/4HANA integrates all business processes on a single platform, facilitating cross-departmental collaboration and informed decision-making.
    • Digital transformation: SAP S/4HANA is designed to support the digital transformation of businesses, enabling greater agility and innovation.

Agility and Flexibility with RISE with SAP

S/4HANA systems can be licensed in an on-premises model (perpetual and proprietary license) or in a cloud model through initiatives such as RISE with SAP, a bundle of products that complement S/4HANA. The key benefits of this licensing model over the on-premises model are as follows:

 

  • Agility and flexibility: RISE with SAP enables companies to be more agile and flexible, adapting quickly to market changes and business needs.
  • Cost reduction: By migrating to the cloud, companies can reduce operational and infrastructure costs by letting SAP take care of system maintenance and management.
  • Enable continuous innovation: RISE with SAP enables continuous innovation through automatic updates and access to the latest technologies, such as artificial intelligence and machine learning.
  • Security and compliance: SAP ensures high standards of security and compliance to protect business data and operations.
  • Scalability: Cloud solutions enable resources to be scaled according to business needs, resulting in greater efficiency and resource optimization.
  • Functionality: Rise with SAP integrates additional products such as group reporting, credits for BTP usage and artificial intelligence services, Build Zone or Build Automation.

 

By migrating our SAP system to S/4HANA, we are not only modernizing our technology infrastructure. We are also strengthening our ability to innovate and remain competitive in an ever-changing business environment.