Getting an Overview of SAP S/4HANA

Objectives

After completing this lesson, you will be able to:
  • Summarize the digitization challenge
  • Outline SAP HANA and SAP S/4HANA
  • Outline SAP S/4HANA finance
  • Describe SAP Fiori user interface and tools

Connected Digital World

The infographic highlights trends in the connected digital world, covering IoT growth, robotic automation, AI automation, business networks, customer experience, and digital supply chain efficiency.

The world continues to change and present more and more business challenges and opportunities. Today's world is digital and networked. For example:

  • The pace of data generation is accelerating - in the last two years, 90% of world data has been generated.
  • Over the next two years, there will be 40% growth in the adoption of business networks.
  • By the end of the decade, 212 billion things, from cars to heavy equipment to consumer appliances will be connected to the internet.
  • By 2020, there will be 9 billion mobile users in the world.
  • Last year, 51% of workloads were processed in the cloud, and in the future more workloads will be processed in the cloud.

Please see the following resources:

  1. https://www.accenture.com/nl-en/insights/technology/_acnmedia/Thought-Leadership-Assets/PDF-2/Accenture-Technology-Vision-2020-Full-Report.pdf
  2. https://www.gartner.com/en/newsroom/press-releases/2020-01-23-gartner-predicts-69--of-routine-work-currently-done-b
  3. https://www.ventanaresearch.com/digitaltechnology?utm_source=hs_email&utm_medium=email&utm_content=60916286&_hsenc=p2ANqtz-86lhkaCQ8Mze3slTB0g-84d8SFt9granKEPTUZ2RLwo1dNaBgIRBFw3psoqybqHBCkssgg41ncxIR4D0_UNlJHahYYVQ&_hsmi=60916286
  4. https://www.pwc.de/de/consulting/pwc-consumer-intelligence-series-customer-experience.pdf
  5. https://www.bcg.com/publications/2019/most-innovative-companies-collaborative-platforms-ecosystems-changing-nnovation
  6. https://www.bcg.com/de-de/capabilities/operations/digital-supply-chain
ILT

SAP delivers an intelligent integrated automation suite so that customers can focus on leveraging the next level potential of robotic process automation (RPA). RPA can offer a great opportunity to analyze the process level data that it executes. Combined with the integration of intelligent technologies, such as machine learning the robots are more relevant than ever.

You can think of RPA as the Hands and the Legs of the Robot, whereas Machine Learning acts as the Brain that makes decisions, and Conversational AI can play an interfacing role to receive and disseminate instructions from users digitally.

Definitions of these key terms are:

  • Conversational AI assists users with access to peers for guidance and interaction or smart support with automated conversational bots.

  • Intelligent RPA bots automate standard processes via recorded transactions to execute repetitive & time consuming tasks automatically going forward. You can use SAP Business Technology Platform for cross system automation.
  • Machine Learning uses your customer specific history and exceptions to predict, support, automate or optimize business user decisions.
  • Internet of Things integration provides insights to real-time sensor data to facilitate and improve existing business processes and also allow business users to take pro-active decisions.

SAP HANA

A time line of enterprise applications, beginning with R/2 in 1979, R/3 in 1992, ERP in 2004, and culminating in SAP S/4Hana in 2015.

Since the beginning of enterprise computing, SAP have been rebuilding the business applications whenever major technology shifts have occurred.

Some key moments in SAP’s application development history include:

  • 1979 – SAP invents ERP. SAP builds standard business software based on mainframe technology. The name, SAP R/2 supports and integrates major business functions in real time and handles multi-country and multi-currency implementations. (R means real time, and although there was an R/1, this is not regarded as the first major release.)
  • 1992 – With the rise of the personal computer, the introduction of client/server architecture means another rewrite of the applications to exploit the power of a layered, three-tier architecture approach, in which processing is split across three layers - client, application, and database. It is the end of the mono-chromatic, text-based, messy green screens and the start of a new graphical interface to improve the end user experience. This is the birth of SAP R/3.
  • 2004 – Now the Web is firmly established as the common business network and customers demand better integration between their business applications and the Web. SAP develops a new integration application platform called SAP NetWeaver in order to enable this. All SAP applications run on a common platform, and customers and partners can build and integrate existing applications easily using widely adopted Web standards, such as service-oriented architecture (SOA). Additionally, a little later, a new switch framework is introduced to allow customers to selectively enable only the new functions developed by SAP in order to avoid disrupting their core processes. The SAP R/3 name is now replaced by SAP ERP. ERP is part of a larger family known as SAP Business Suite, which also contains many other line of business (LOB) applications from SAP, such as SAP CRM.
  • 2015 – A new wave of advances in hardware architecture brings massive computing power at decreasing costs. Huge memory and multi-core processors arrive to offer massive computing power. The underlying design of existing SAP applications does not fully exploit the power of the new hardware. A rewrite of the complete Business Suite is required. The new business suite is called SAP S/4HANA.
Four technological advances: powerful multi-core processors, huge and affordable memory, optimized caching, and the cloud.

With so much memory available, we can now store the entire database of even the largest organizations, completely in memory. This gives you instant access to all data, and eliminates wait times caused by data loading to memory from disk to memory. We can lose the mechanical spinning disk and the latency it brings, and rely on memory to provide all data instantly to the CPU. Even though Solid State Devices (SSD) storage is faster than disk it still can not compete with memory. So memory is no longer the bottleneck it once was. To address large amounts of memory, we also use 64-bit operating systems. Traditional 32-bit operating systems cannot address the large amounts of memory now available. In addition to huge memory, CPU performance continues to improve at a phenomenal rate. We now have high-speed, multi-core CPUs that can take on complex tasks and break them up so then can be processed in parallel to provide incredible response times. This means that response times for even the most complex analytical tasks, such as predictive analysis, can be carried out in real time. So with huge memory and faster multi-core CPUs we have now have access to huge amounts of computing power. We can now easily slot more servers into our landscape to add more processing power or memory in order to scale to any size.

SAP rewrote its business application software to fully exploit the new hardware. SAP worked closely with leading hardware partners who shared the product blueprints of their new CPU architectures, so that SAP knew how to write the very best modern software to extract as much power as possible.

Cloud computing technology has matured in the last few years and is now a compelling deployment option for our customers who do not want to take on the complexity and cost of the installation and maintenance of IT landscapes. Virtualizing machines means lower costs associated with running enterprise-wide applications. Public cloud services based on subscription models increase access to everyone to the latest solutions, reducing the costs and simplifying everything.

An infographic contrasting the traditional approach to data, involving OLTP and OLAP, to the SAP HANA approach, involving HTAP.

In the past, it was necessary to move data away from transactional applications into dedicated systems so that data could be harmonized and cleaned. As a result, multiple copies of the data were created. But even worse, there was latency between the systems while data was transferred. This means that we did not have a consistent picture of data across the enterprise at any moment.

In many business landscapes today, transactions are managed in systems where both the hardware architecture, database design and the data models are built around fast read/write processing at the record level. Analysis systems take on a different design approach. The hardware, database, and data models are built around batch loading, aggregated storage, and a focus on read-intensive queries and caching. That is why online transaction systems (OLTP) and online analytical processing systems (OLAP) are often separated and linked through interfaces through which data is lifted and shifted periodically. This approach means delays in analysis on the transactional data. It is not unusual to have to wait the next day before analysis can begin on the transactional data.

SAP HANA is able to bring transactional and analysis requirements into one platform. The acronym for this type of consolidated system is Hybrid Transaction/Analytical Processing (HTAP). The database, hardware, and data model of SAP HANA are built to handle combined transactional and analysis processing. No movement of data is necessary and transactional and analytical users work from the same, single copy of the data. This means we have live data available to all applications in real time. This reduces the complexity by removing the need to move data using separate software and interfaces. It also means that new innovative applications can be built that combine transactions and analytics such as those found in SAP S/4HANA.

SAP S/4HANA Deployment Options

The image illustrates SAP S/4HANA's unified code line, seamlessly integrating both cloud and on-premise solutions for all-inclusive business management adaptability.

SAP S/4HANA's simplified data model and modern user experience are consistent for both cloud and on premise. When it's time to deploy SAP S/4HANA, the choices are on premise or in the cloud. Either way, SAP S/4HANA maintains consistency with the data model, user experience, and code line. SAP S/4HANA and SAP S/4HANA Cloud offer a consistent solution, allowing you to benefit in any scenario or combination.

There are many factors in making the on premise or cloud deployment decision, but they can be simplified into a few major dimensions:

  • IT Strategy: Increasingly, customers are taking a "cloud first" approach to their ERP system landscape. It is important to verify that the scope of the standard best practices in S/4HANA Cloud will serve your business requirements, and whether this should be complemented with extended functionality (Lines of business, industry-specific) via a co-deployment with S/4HANA Cloud, single-tenant edition, for example.
  • Innovation Cycles: Updates to S/4HANA Cloud are provided on a quarterly innovation cycle. SAP regularly delivers the latest in machine learning, natural language processing, predictive analytics, and more in a non-disruptive, easy-to-consume manner. S/4HANA Cloud, single-tenant edition is offered with two upgrades per year, while S/4HANA on premise is offered with one annual upgrade.
  • Business Functionality: The available scope for each deployment option will vary, allowing choices for licensing and deployment.
  • Deployment times: The deployment of S/4HANA can be accelerated in the cloud for many customers, since they do not need to acquire and maintain infrastructure.
  • Regulatory, industry, and regional requirements: Some customers may have requirements in these areas that make cloud unsuitable. If this is the case, then they can continue with traditional on premise deployment. Alternatively, if they have differing requirements for various subsidiaries, they can mix-and-match cloud and on premise deployment in a 2-tier strategy and still maintain consistency for IT and business users.

SAP believes all customers will eventually run their ERP in the public cloud to take advantage of the power of agile standardization.

Not every company is ready to make that move today, so SAP provides some options:

  • S/4HANA Cloud: The fastest path to the intelligent enterprise.
  • S/4HANA: Offers the customer complete control - on premise, through hyperscalers, on SAP HANA Enterprise Cloud.
  • All options utilize the same code line, data model, and user experience.
A table comparing the different business processes between SAP S/4HANA Cloud Public, SAP S/4HANA Cloud, Private Edition, and SAP S/4HANA Any-Premise.

With SAP S/4HANA, you can choose the environment – from software as a service (SaaS) to private cloud supported by hyperscale computing to on premise – that uses the best aspects of the cloud to accelerate your time to value and increase business agility, while balancing customization, standardization, and control:

  • Cloud - Maximize agility with standardized processes built from proven best practices in every industry, new innovations as frequently as four times per year, fast time to value, and lower TCO. Available as private or public cloud solution with the characteristics shown in the figure.
  • Any premise - Optimize your capacity for specialization by deploying SAP S/4HANA in your own datacenter or utilizing an infrastructure-as-a-service provider and customize and extend SAP S/4HANA with complete control of your environment.

Overview of Finance with SAP S/4HANA

The customer value proposition of SAP S/4HANA can be summarized as follows:

  • Instant insight-to-action:

    • In-memory-enabled single financial data source across transactional and analytical data.
    • Enables real-time processes for instant insight across finance and controlling to make timely and relevant decisions.
  • Accelerated close:

    • Enable a soft close by solving issues throughout the month.
    • Integrated financial and managerial reporting.
    • Reduces duplications and errors minimizing the need for reconciliations.
  • Real-time cash management:

    • Automated payment processes.
    • Provide rich analysis dimensions and drill-down features for better insights into cash daily operations.
    • Bank Account Management.
  • Higher productivity:

    • Intuitive and role-based user experience for higher employee productivity.
    • Real-time receivables and payables reconciliation avoiding the manual work.
  • Pre-delivered integration (for example with HR):

    • Employee and cost center data integrated immediately across SAP SuccessFactors and SAP S/4HANA Cloud.
    • Integration scenarios leveraging Intelligent Services and Machine Learning are constantly in development.
The Universal Journal persists through accounting, compliance, entity close, intercompany, consolidation, and disclosure.

The Universal Journal is the central line item table offering a common line item persistence for General Ledger, Profit Center Accounting, Fixed Asset Accounting, Controlling, Material Ledger, and Margin Analysis. The table contains the superset of all attributes needed by those application. Transaction data is stored only once. As all the applications now share the journal entries, also the logic for how currencies are converted, how attributes are derived and so on, is common for all applications. Differing values and results requiring reconciliations and corrections are no longer required by design.

SAP Fiori

Scenario

Why is focusing on the User Experience important? Because having a great User experience has an impact on business value. User Experience is not simply about colors and fonts. With a great User Experience people gain productivity and can work faster and more efficiently. It also helps to increase application adoption, decrease errors, and save training costs. All benefits with an immediately impact on the overall business value.

SAP Fiori offers a collection of apps, created based on the rules of the SAP User Experience. Each SAP Fiori app is designed to cover an individual step for a specific role. Several apps combined represent therefore a complete process covering different enterprise solutions and systems. This is a shift from monolithic solutions to activity-based apps providing a role-based simplification of business processes. A role-based user experience means that end users get all information and functions they need for their daily work – but are not overborne by more.

The SAP Fiori Launchpad is at the center of this strategy, offering a single entry point for users to interact with different enterprise solutions.

The three dimensions of SAP Fiori depicted in relation to one another: concept, design, and technology.

The three dimensions of SAP Fiori are Design, Concept, and Technology. In each dimension, rules and guidelines starting with optic, handling, interactions, and architectures up to technologies in development and system landscape are in place to set the definition about what SAP Fiori really is.

ILT

Transactional apps offer task-based processing: Access to tasks like change, create, or entire processes with guided navigation.

Search and Explore View essential information about objects and contextual navigation between related objects.

Analytical apps provide insight to action. They give you a visual overview of complex topics for monitoring or tracking purposes.

Factsheets give you the opportunity to search and explore your data. They provide a 360 degree view on essential information about an object, and contextual navigation between related objects.

ILT

The SAP Fiori Launchpad is a shell that hosts SAP Fiori apps, and provides services such as navigation, personalization, embedded support, and application configuration. It is the entry point to SAP Fiori apps on mobile and desktop devices, too. The launchpad displays a home page with tiles, which can display live status indicators, such as the number of open tasks. Each tile represents a business application that the user can launch.

The SAP Fiori apps on the home page are arranged in tile groups. The user can personalize the layout of the home page, by grouping, moving, and removing tiles. The user can also add, delete, rename, and reorder groups. The ability to personalize the home page must be enabled in the launchpad configuration.

To add tiles to groups, the launchpad provides a tile catalog, which displays all the tiles that are available to a user.

End users can personalize the tiles in their Fiori Launchpad environment.

The following personalization options are available in SAP Fiori Launchpad:

  • Adding applications from the catalog assigned to them.

  • Removing applications that they do not want to use.

  • Modifying and adding applications for filtered report results.

For example, if the user is a group cash manager who is interested in the German market, the user can create an application to take them directly to the cash position of the German market. They can arrive at the cash position directly with one click from the SAP Fiori launchpad home page.

Log on to and Navigate in SAP Fiori

Log on to and Navigate in SAP GUI

Summary

  • SAP S/4HANA integrates digital transformation with real-time data processing with cloud and on-premise deployment options.

  • SAP HANA provides a unified platform for optimized transactional and analytical processing.

  • SAP Fiori offers a user-friendly interface for SAP applications through the SAP Fiori Launchpad, based on roles and authorizations.

  • Default values for user settings can be adjusted, for example, for company code and fiscal year.

  • Customizing options are accessible for organizational management.