SAP S/4 HANA Overview

As time goes on, most of the big tech companies show their keen interest in SAP H/4 HANA, this is because the SAP H/4 HANA provides a relational and column-oriented database management service. The SAP S/4 HANA overview article helps our SAP HANA consultants to become masters in SAP H/4 HANA concepts. From this article, you will be learning the purposes, key features, industrial applications, and SAP HANA VS SAP H/4 HANA. let’s begin;

What is the SAP S/4 HANA

The SAP S/4 HANA is an ERP( enterprise resource planning) business suite that is developed based on SAP HANA in-memory database server that allows business enterprises to perform tasks like transactions, and analyze the business data in real-time applications. SAP S/4 HANA application can be used in both on-premise and cloud environments. One of the key aspects to developing SAP H/4 HANA is that it uses the SAP Fiori user interface rather than the traditional SAP graphical user interface (GUI). SAP S/4 HANA module required a rethinking of the data concepts and rewriting the millions of SAP codes. SAP S/4 HANA provides an opportunity for business enterprises to redesign business models and frameworks. 

SAP HANA


SAP S/4 HANA editions :

The SAP S/4 HANA works well on two kinds of environments they are:

  • On-premise 
  • Cloud 

  Let us know them in detail;

1. On-premise:

  1. The following are the key factors of the On-premise edition;

  → On-premise is an Enterprise business planning suite that is based on in-memory database management.
  → On-premise is an internal platform so that it will run from the company’s servers when users try to access it.
  → The features of on-premise editions include are;

  1. Database-driven 
  2. Networking
  3. Customization.

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2. Cloud:

   Below are the key factors of the Cloud edition:

 → Cloud edition of SAP ERP is a Software as a service type. This type of SAP edition offers software upgrades and maintenance services.

 → The features of Cloud editions;

  1. Programming interface navigation
  2. Integration
  3. Data-driven services.

 → It offers easier operability, a limited, and readymade set of business-driven end products.
      Examples: Microsoft Azure, Google cloud platform, and AWS (Amazon web service).

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Key features of SAP S/4 HANA : 

     The following are the key features of the SAP S/4 HANA data-driven module;

  •  Real-time inventory management and material valuations.
  • Accelerated material requirements planning
  • Effective order management and billing.
  • Efficient procurement
  • Advanced available to promise.
  • Embedded extended warehouse management.
  • Embedded software in product development.
  • Optimized portfolio and project management.
  • Integrated quality management.
  • Production planning and detailed scheduling.
  • Consistent SAP Fiori user experience for SAP HANA.

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What are the needs of using SAP S/4 HANA:

   The below are the major benefits of the SAP S/4 HANA:

  • Time-saving integration: SAP S/4 HANA delivers a fully maintained integration that works with any platform, allowing you to continue to extend your technical architecture, including any employee portal applications.
  • Reduced IT workloads: A single and secure environment provides increased scalability, faster, and easier backups that allow offloading work from staff so they can focus on critical business and be more efficient.
  • Improved work processes and productivity: Quickly recognize and reduce the errors, allowing your business to increase efficiency, and also reducing the manual workloads by consolidating multiple workloads.
  • Enhanced functionality to support innovative business models: New feature packages specially designed for your industry and business.
  • Improve total cost of ownership: Manage large volumes of structured and unstructured data efficiently.
  • Financial savings, Goals, and revenue: plan and project desired results to create the goals you want, as well as reduce the cost through storage reduction and the elimination of the low-value and repetitive workloads. 
  • Move CAPEX TO OPEX: Retiring the legacy systems and leveraging improved resources by deploying the SAP S/4 HANA to the cloud eliminates most capital expenditure costs, maintenance, and related Costs to OPEX line items. 
  • Simplify administration with real-time data: Real-time data allows insightful, informed decisions for better forecasts, including predictive forecast, enabling faster planning with more granular precisions. 
  • Customer satisfaction: Anticipate customer needs and deliver an amazing experience your customers won’t forget.

Major differences between SAP HANA and SAP H/4 HANA

Now it’s time for us to know the major differences between SAP HANA and SAP H/4 HANA:

  • Usage

          a . SAP HANA provides in-memory computational power to SAP and Non-SAP applications.

          b. Utilizes the SAP S/4 HANA’s in-memory computing power to unleash top-notch Business intelligence capabilities.

  •  Live reporting: 

           a.SAP HANA supports live reporting.

           b.Whereas SAP H/4 HANA does not support live reporting.

  • Business warehouse:

           a.The business warehouse is not available for SAP HANA.

           b.Where SAP H/4 HANA consists of the business warehouse.

  •  Prerequisites:

           a.SAP HANA provides prior knowledge of how databases or SQL (sequential query language works).

           b.Whereas SAP H/4 HANA provides basic proficiency in SAP Fiori or any other ERPs.

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SAP S/4 HANA migration transitions

  There are three transition ways to migrate SAP S/4 HANA:

  The conversation paths are as follows;

  •  System conversation -> ERP system -> that is available “on-premise” -> complete conversation of an existing SAP Business Suite Software system to SAP S/4 HANA.
  • Landscape Transformation -> ERP system classified into three regions (Region A, Region B, and Region C) -> available on both “On-premise” and “cloud” -> Consolidation of current regional SAP business Suite software landscape or selective data transformation into one global SAP H/4 HANA software system.
  • New system installation ->ERP system and third party systems ->available on both the platforms “On-premise:” and “cloud” ->new or existing SAP customer implementing a new SAP S/4 HANA software system with initial data load.

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Industrial applications of SAP S/4 HANA

 There are a lot of data-driven and business-driven benefits of SAP S/4 HANA. Due to these reasons, most industries prefer to adopt SAP S/4 HANA in their organizations. I would like to mention the industries where we get to see the SAP S/4 HANA implementation:

  • Manufacturing industries 
  • Engineering and construction industries 
  • Consumer and industrial product sales 
  • Banking sectors 
  • FinTech companies 
  • Transportation and logistic firms 
  • Retail industry 
  •  Health care centers
  • Public services and utilities.
  • The list goes on.

Final words :

SAP S/4 HANA is the most widely used ERP functional module to avoid Any insufficiency occurring in the data transfer. SAP H/4 HANA is a data-driven and business-driven enterprise resource planning (ERP) functional module. SAP H/4 HANA is a  relational database management application that creates and retrieves data from different sources.  The SAP H/4 HANA article is an extended version of the SAP S/4 HANA module which helps readers like SAP consultants, and SAP experts to master the basic concepts of the SAP H/4 HANA module.

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Kavya Gowda
Kavya Gowda
Research Analyst
Kavya works for HKR Trainings institute as a technical writer with diverse experience in many kinds of technology-related content development. She holds a graduate education in the Computer science and Engineering stream. She has cultivated strong technical skills from reading tech blogs and also doing a lot of research related to content. She manages to write great content in many fields like Programming & Frameworks, Enterprise Integration, Web Development, SAP, and Business Process Management (BPM). Connect her on LinkedIn and Twitter.