What is SAP S/4HANA?
SAP S/4HANA is an integrated ERP solution (Enterprise Resource Planning) that runs on SAP HANA, an in-memory database designed for high-speed data processing and real-time analytics powered by AI. While legacy SAP ERP solutions (like those of competitors) were often heavy, transaction-focused, and reliant on traditional databases, SAP S/4HANA stands out by leveraging HANA’s performance to deliver immediate insights through AI. This allows users to work more information-driven and anomaly-based rather than merely transaction-oriented, making it easier to identify new opportunities and detect errors.
Additionally, the modern user interface provides more flexibility, and the cloud solution accelerates the pace of innovation and availability of new features.
With SAP S/4HANA, businesses also get a platform better equipped for integrating advanced technologies such as AI, machine learning, and automated processes. S/4HANA is a mature yet future-proof solution compared to earlier SAP ERP versions. It has a vast ecosystem, including SAP Analytics Cloud, SAP SuccessFactors, and other SAP products. The system is also designed with open integration in mind, making it easier to connect with third-party providers in a larger ecosystem.
- A powerful ERP solution with a high-speed database integrating storage and memory.
- HANA’s advanced architecture (in-memory technology) is optimized for AI.
- Focus on user experience and information-driven workflows.
- A mature and stable system while still being innovative and future-ready.
- Access to SAP’s entire ecosystem and various third-party solutions.
Differences Between SAP and SAP S/4HANA
One of the most significant differences between traditional SAP ERP (such as ECC) and SAP S/4HANA is the database and architecture. While traditional SAP ERP can run on various databases, SAP S/4HANA runs exclusively on SAP HANA, providing significantly higher performance and the ability to process large datasets in real time.
S/4HANA exclusively runs on SAP HANA, an in-memory database that delivers real-time insights and high performance. This enables seamless integration of AI, machine learning, and other advanced technologies.
With S/4HANA, businesses can continuously innovate, particularly by leveraging the cloud for faster access to new functionalities. Another key difference is in user experience: shifting from a more traditional, transaction-focused interface to a more intuitive, user-oriented design where machine learning predicts needs, identifies anomalies, and reduces manual tasks.
What is HANA Used For?
HANA is primarily the database foundation of SAP S/4HANA. It is designed to handle both transactional and analytical workloads in real-time. This enables businesses to combine operational data, analytics, and predictive insights within a single system.
By running both ERP transactions and analytics on a single platform, businesses can effectively utilize AI and machine learning for immediate insights, forecasting future needs, and optimizing processes. This transforms how companies use data: the system works for you, enabling better, more informed decisions.
- SAP S/4HANA seamlessly integrates with SAP’s AI solutions, such as SAP BPT, offering machine learning, IoT, and advanced analytics.
- AI enables predictive analytics, process automation, and improved business operations.
- SAP HANA’s high performance allows for efficient execution of advanced AI algorithms, delivering faster and more accurate results.
Benefits of SAP S/4HANA
SAP S/4HANA provides real-time ERP capabilities, significantly improving business efficiency. Its in-memory technology enables rapid processing of vast data volumes. AI and machine learning can detect anomalies, automate workflows, and reduce manual operations, transforming business processes from being transaction-focused to more strategic and analytical.
S/4HANA can be deployed in the cloud, on-premise, or as a hybrid solution. Cloud deployment, especially public cloud, reduces costs and accelerates access to new innovations. In today’s API-first world, cloud deployment is often a prerequisite for leveraging SAP’s partner ecosystem and integrations.
- Real-time ERP enhances decision-making and drives innovation.
- Cloud deployment reduces costs and ensures continuous feature updates.
- Seamless integration with SAP’s ecosystem and third-party solutions.
- A scalable system that accommodates complex international operations.
- Advanced AI capabilities with high-speed data processing.
AI in SAP S/4HANA ERP
Automation of business processes is one of AI’s key strengths within SAP S/4HANA. Machine learning suggests next steps based on historical data, and users can interact with the system through tools like SAP Joule. Joule introduces natural interaction into the core of the system, enabling users to request analyses, filter data, and conduct what-if scenarios with ease.
AI also enhances decision-making by analyzing massive datasets to identify patterns and trends that might otherwise go unnoticed. This provides executives with better strategic insights and the agility to adapt to market changes quickly.
Examples of AI Functionality in SAP S/4HANA
- SAP Cash Application: Uses machine learning to automatically match incoming payments with outstanding invoices, reducing workload and improving accuracy.
- SAP Predictive Analytics: Integrated with SAP S/4HANA to provide predictive analysis and reporting based on historical data.
- SAP CoPilot: A digital assistant leveraging AI to guide users through the SAP S/4HANA system, suggest actions, and provide context-aware insights.
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FAQ
- What is SAP S/4 HANA? –A modern, scalable ERP that uses the modern HANA database and has flexible cloud solutions.
- What is the difference between SAP and SAP S/4 HANA? –With HANA you get a modern, but mature and future-oriented solution. SAP without HANA is on its way out of support.
- What is HANA used for? -It is a lightning-fast and stable database that handles complex and large amounts of data. It is used for SAP S/4HANA.
- What is the difference between SAP ERP and SAP HANA? - SAP ERP is the business application itself (e.g. ECC or S/4), while HANA is the database. S/4HANA is the latest generation ERP that runs on HANA.
- Is HANA an ERP or CRM? HANA is a database, not an ERP or CRM. SAP S/4HANA ERP and SAP CRM can both run on HANA.
- Does SAP HANA use SQL? -Yes. SQL is the leading database language and is used in SAP HANA Studio and SQL console.
- SAP or Dynamics 365 Finance or Oracle? -We must not forget Visma NEXT. SAP S/4HANA has local customizations, integrations and is adaptable and scalable, but also costs more and is not for all companies. The choice depends on your needs and resources.
Choosing the right ERP solution
When choosing an ERP solution like SAP S/4HANA, it is important to consider both your current needs and your future growth.
Comparing SAP S/4HANA, Dynamics 365 Finance, and Oracle can provide insight into which solution is best for your business. While SAP S/4HANA offers comprehensive real-time analytics and integration with the SAP ecosystem, Dynamics 365 Finance has the advantage of seamless integration with other Microsoft products. Oracle is known for its strong database functionality and scalability, but has been somewhat behind in recent years according to some reviews. Microsoft may be closest in functionality and scalability to SAP today. For smaller businesses with simpler needs, Visma NEXT is an alternative.
Do you need a system that can be quickly updated via the cloud, leverages AI, and can scale globally? Then S/4HANA could be the way to go. Companies should consider whether to migrate from older SAP ERP systems via a technical upgrade (brownfield), a complete cleanup (greenfield), or an intermediate solution (bluefield).
Migrating to S/4HANA also involves preparing the organization. It is not just about technology, but about people and processes. Good training and thoughtful change management are essential to ensure that your team actually takes advantage of the new functionality. Training, courses and consulting from experienced partners (like us) can make the transition smoother.
SAP S/4HANA is also suitable for companies with complex needs, that want real-time data analysis, require high scalability, and extensive integration with other systems. Visma NEXT (and old Visma) is more suitable for small to medium-sized companies that value ease of use, local customization, and cost-effectiveness. With SAP S/4HANA, you have more advanced features and capabilities while the system is widely used right up to large leading companies in the Nordics.
When choosing an ERP solution, you should consider your business's specific needs, budget, and long-term growth plans. It can also be useful to consult with an ERP specialist to get a customized recommendation.
- Compare SAP vs. Dynamics 365 Finance vs. Oracle. Also consider Visma NEXT.
- Consider your company's size, complexity, and growth plans.
- Consider implementation strategy: brownfield, greenfield, or bluefield.
- Budget for courses and training to ensure successful transition.
Summary
SAP S/4HANA represents a significant upgrade from legacy ERP solutions, offering high-speed in-memory processing, real-time analytics, and AI integration. For businesses looking to stay competitive and efficient, SAP S/4HANA is a strategic choice.
- A major upgrade from previous ERP solutions from SAP and other providers.
- Initial costs, maintenance, and customization mean the system is often best suited for larger enterprises but can also be valuable for unique and complex smaller businesses.
- SAP’s ecosystem includes fully integrated solutions, third-party applications, and flexible API integrations.
- The advanced database technology with integrated memory and storage is ideal for AI-driven processes.
- A highly scalable and flexible system, capable of handling the most complex datasets.
For more information and tailored recommendations for your business, consulting a SAP specialist or attending relevant training programs is highly recommended.
