In the realm of enterprise resource planning (ERP), SAP S/4HANA represents the cutting edge. There are many ways in which it diverges from its SAP ECC predecessor. The first distinguishing feature of S/4HANA is that it was developed on an in-memory database. Unlike ECC, which was developed on a more conventional database platform. Hence, S/4HANA can handle massive volumes of data in near-real time. Providing the means for businesses to act with greater speed and accuracy. As a result of S/4HANA’s streamlined data model, data duplication is greatly diminished, as well as processing speed is increased. Finally, the analytics tools in S/4HANA allow for continuous visibility into the state of the business. Last but not least, S/4HANA allows for a more adaptable deployment strategy and a much more up-to-date user interface. This encompasses traditional installations as well as cloud & hybrid setups. In general, S/4HANA is a vast improvement over ECC. Furthermore, provide increased efficiency, nimbler operations, and better business results.
SAP S/4HANA is the latest work from SAP. This signifies a substantial shift in how ERP systems are developed and executed. It is an upgrade over the previous SAP ECC ERP system & represents a new direction for the company. S/4HANA is designed on an in-memory computing architecture. Include real-time processing, a streamlined data model, & in analytics to aid with decision making. The system also provides a modern client interface & more flexible deployment choices. Make it a viable option for companies of all sizes. In this context, it is crucial to grasp the key distinctions among SAP S/4HANA & SAP ECC. As well as the effects of these dissimilarities on commercial enterprises. This essay will examine the many ways in which S/4HANA stands apart from ECC. Additionally, how this cutting-edge innovation might help commercial enterprises.
What is S/4HANA
Business operations can benefit from SAP SE, a pioneer in enterprise software solutions, and its flagship product, SAP S/4HANA. It’s a cutting-edge enterprise suite developed on an in-memory computing device to handle massive amounts of data instantly. S/4HANA works in tandem with other SAP products to give businesses a comprehensive suite of services for managing their finances, inventory, distribution networks, production processes, and more. This system’s modern UI, built-in analytics, & streamlined data model help firms make more informed decisions more quickly. S/4HANA can be deployed on-premise, in the cloud, or as a hybrid solution, giving enterprises a range of deployment options to suit their needs. SAP S/4HANA is an enterprise resource planning (ERP) system created to aid enterprises in undergoing operational transformation, fostering innovation, and achieving strategic objectives.
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What is ECC?
ECC is short for “SAP ERP Central Component”. This is an enterprise resource planning (ERP) technology technology designed by SAP SE. Before SAP S/4HANA was released, it was SAP’s primary enterprise resource planning (ERP) solution. ECC provides multiple modules . It is possible to implement it so that it can support various business operations. Like accounting, human resource management, purchasing, logistics, production scheduling, and much more. It is a conventional database-driven system. It can operate either on the local machine or in a personal cloud according to its design. It comes with features like real-time analytics, analytics, & interaction with other SAP applications. For a number of years, ECC has been one of the most widely used ERP systems. However, since the release of S/4HANA, SAP has begun transitioning away from this old method in favor of the more modern one.
How is S4 Hana is different from ECC
A next-generation enterprise resource planning (ERP) system, SAP S/4HANA is differentiated from SAP ECC in a number of areas. The following are the primary distinctions:
S/4HANA is developed on an in-memory computing device that delivers real-time processing capabilities. On the other hand, ECC was constructed using a conventional database platform, which was unable to achieve the same degree of performance. The in-memory cloud computing environment makes it possible for organizations to handle enormous big data in real time, which in turn enables enterprises to make decisions more quickly & improves business outcomes.
Simplified Data Model:
S/4HANA includes a streamlined database schema that lessens data redundancy & improves information process efficiency. The latest data figure excludes this need for sophisticated indexing and aggregation, resulting in greater performance and reduced storage costs.
Embedded analytics are a feature of S/4HANA, and they deliver up-to-the-minute insights into how businesses function. Because the system is integrated with SAP Analytics Cloud & SAP BusinessObjects, it enables enterprises to get a deeper comprehension of the data they collect and to make choices that are based on more accurate information.
Interface for Users:
S/4HANA features a new user interface which is more intuitive & user-friendly over ECC’s interface. The advent of digital technologies is designed to streamline tasks to improve productive capacity.
On-premises, cloud, and hybrid deployments are all supported by S/4HANA, giving users a wide variety of options to choose from. This gives them greater leeway in the manner in which they develop the system & enables them to select the deployment option that’s also tailored to meet their requirements in the most effective manner.
Overall, SAP S/4HANA is a major advance compared to ECC, since it offers higher performance, more agility, as well as enhanced business results.
Top business benefits
The HANA in-memory database in SAP S/4HANA allows for greater adaptability, decreased expenses, and accelerated analytic processing, according to experts. It’s possible that the system will be more user-friendly than ECC and facilitate a smoother shift to the cloud. Here are 9 of SAP S/4HANA’s most useful features for companies.
Improved Ease of Changing Business Models
SAP ECC was developed at a time when business models weren’t being pressured to evolve as quickly as they are now due to factors like emerging technology, rising consumer expectations, shifting supply chains, and the rise of hybrid workforces.
Easy integration of purchases into existing ERP systems
Convenience store giants often buy up smaller brands to enter new markets & diversify their product lines. To integrate new acquisitions into their existing enterprise resource planning (ERP) systems was a time- & labor-intensive process before SAP S/4HANA. Nataraj showed how, with S/4HANA, organizations can keep new acquisitions separate from their core operations and hosted on the SAP cloud.
Reduced total cost of ownership
Functionalities like master data governance and Global Available-to-Promise (Global ATP) are built directly into S/4HANA. The fewer boxes an administrator has to take care of, the less it will cost to purchase and maintain the underlying infrastructure.
More quickly gleaned findings from analyses
S/4HANA’s exponential higher level is thanks to the HANA in-memory database. According to Low, this is because its intelligent data design minimizes wasteful aggregate tables & redundant data. As opposed to collecting data and then queuing for it to load in a data warehouse.
Improved ability to predict the future
Slowly but steadily, S/4HANA is improving its modeling, predicting results, and forecasting with the help of embedded AI & machine learning applications. In order to predict future demand, a store, for instance, may utilize the Universal Data Element Framework to analyze past data and incorporate external elements, such as the weather. The store, as Nataraj pointed out, might then create a model to forecast the need for a certain product in a specific area.
More timely closes at the end of each period
Quicker end-of-period financial closures would result from a more efficient database. According to Nataraj, S/4HANA enables businesses to perform predictive accounting with the application of artificial intelligence & machine learning, allowing them to reconcile the accounts in real time & receive reports demonstrating how they financially stand right now.
Taking preventative measures to care for assets
Businesses may use S/4HANA’s in-memory database, machine learning, as well as artificial intelligence to combine IoT sensors from the manufacturing floor with asset monitoring and alerts using data modeling. Vibration, temperature, and movement are continuously monitored by the sensors, which “operate 24/7,” as Low put it. He also noted that businesses can save money by predicting when machines would need maintenance or will malfunction based on baseline measurements.
Improved usability by simplifying the interface
SAP has not done away with its GUI, the standard user interface for almost 20 years. However, Low noted that SAP redesigned it for S/4HANA to more accurately match modernized business procedures. SAP Fiori is an HTML5-based (SAPUI5) platform that may be implemented in S/4HANA or used as a stand-alone module for common business tasks on iOS & Android devices.
Automation of mundane activities
With the help of S/4HANA’s light process automation, businesses can stop wasting time on mundane operations like running reports by hand and instead devote that time to increasing productivity. To further accelerate and simplify corporate operations, automation of robotic processes systems can be integrated.
The ability to adapt is crucial
Companies that migrate to S/4HANA, whether through a greenfield implementation or a brownfield update, gain the agility to accommodate future company acquisitions, keep track of assets in real time, and free up workers’ time by doing away with repetitive, manual processes.
When the fundamental distinctions between SAP releases are understood, it is simple to understand why a transformation to S/4 HANA is advantageous, and it is also simple to see how, with appropriate SAP migration scenarios, the transfer can be a straightforward process.
The transition to SAP S/4HANA is becoming less of an option and much more of a must for most businesses. This is due to the fact that SAP intends to stop providing any kind of support for earlier versions of its product by the year 2027. The advantages of S/4HANA conversion are multiple; that include a good user experience, performance improvement, & reduced cost of ownership plenty of others.
Meravath Raju is a Digital Marketer, and a passionate writer, who is working with MindMajix, a top global online training provider. He also holds in-depth knowledge of IT and demanding technologies such as Business Intelligence, Salesforce, Cybersecurity, Software Testing, QA, Data analytics, Project Management and ERP tools, etc.