Getting an Overview of SAP S/4HANA

Objective

After completing this lesson, you will be able to describe SAP S/4HANA

The Connected Digital World

Infographic highlighting trends: IoT (75bn devices by 2025), RPA adoption (50% by 2023), digital ecosystems (83% cross-industry), AI (69% tasks automated by 2024), CX improvement (54%), and supply chains (40% margin boost).

The world has continued to change and so to have business challenges and opportunities. Today's world is digital and networked.

  • 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 alone, 51% of workloads were processed in the cloud. That amount will only grow for the foreseeable future.
Diagram illustrating components of a computing system: multi-core processors, large/affordable memory, optimized cache, and cloud infrastructure, connected by arrows in a sequential flow.

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. Virtualising 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.

Comparison of data handling: Traditional approach separates OLTP for transactions and OLAP for analysis, while SAP HANA enables transaction and real-time analysis in a single HTAP system.

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 are created. But even worse, there is latency between the systems while data is transferred. This means that we do 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 - The Intelligent Core

Diagram illustrating SAP's ecosystem: interconnected layers of business technology, applications, processes, collaboration, experience, and sustainability, with the Business Network at the top.

SAP believes that best-run business are intelligent enterprises. They apply advanced technologies and best practices within agile, integrated business processes. This graphic shows the Intelligent Enterprise solution portfolio and how the pieces come together.

The Intelligent Enterprise comprises four core components:

  • The Business Collaboration component focuses on being able to connect and collaborate with external and internal business partners to bridge the gap between locations, organizations and system landscapes. An example of collaboration would be the use of the Ariba Network, where the company can find, interact, and collaborate with suppliers.
  • The Business Process component focuses on the end-to-end scenario for each business transaction and having the integration of these processes as a top priority. In this training we will focus on the financial portions of the business processes.
  • The Business Applications component focuses on the solutions to record data for the Intelligent Enterprise. In this training we will focus on the SAP S/4HANA solution.
  • The Business Technology component focuses on the technical infrastructure and information management that introduce the intelligence into the Intelligent Enterprise.

Let's look in more detail:

  • Business network helps customers digitalize cross-company business processes. The network builds on our procurement, travel, and contingent workforce solutions. It helps our customers work together to build flexible value chains.
  • Experience management helps organizations evaluate and act on customer, partner, and employee sentiment. Understanding what your stakeholders want and how they feel is critical to making the right decisions.
  • Intelligent suite helps to run agile, integrated business processes. We help manage every part of the organization - employees, customers, products, spend, finance, and IT. With embedded analytics, we offer a 360-degree view of the business.
  • Industry cloud allows customers to discover and deploy vertical solutions from SAP and partners. These help customers apply leading-edge industry best practices and extend current business processes.
  • Sustainability management helps customers understand and manage their impact on people and the environment. Climate 21 is the name of our initiative behind our new crop of sustainability management solutions. These solutions help businesses understand and manage greenhouse gas emissions.
  • Business Technology Platform provides data management and analytics and supports application development and integration. It also allows our customers to use intelligent technologies - such as artificial intelligence, machine learning, and the Internet of Things - to drive innovation.

A key part of the strategy is the integration of end-to-end processes. SAP made integrating these processes a top priority. Our breadth of solutions makes this possible.

Universal Journal Enables Continuous Accounting

A diagram explains how ERP integrates transactions and analytics using a unified system, covering accounting, entity close, intercompany, consolidation, and disclosure through a Universal Journal.

The universal journal is now the single source of truth. Each posting creates line items in the universal journal table (ACDOCA) that combines all data entered in the different financial components into one single structure.

The data model has been massively simplified. This means we lost unnecessary tables and the data in those tables in order to shrink the footprint dramatically and simplify the application design and extensibility.

SAP S/4HANA - Deployment Options

SAP S/4HANA Consistent Choice for Cloud and On-Premise

SAP S/4HANA deployment options: Cloud and On-Premise, connected via One Code Line .

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 2 upgrades per year, while S/4HANA on-premise is offer 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. Or, 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.
Comparison table of SAP S/4HANA Cloud Public Edition, Private Edition, and Any-Premise, highlighting differences in innovation lifecycle, cost, governance, infrastructure, customization, extension, and delivery.

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.

Summary

  • The digital core of SAP S/4HANA is designed for real-time business processes and analytics, integrating transactional and analytical processing in one platform for live data access.
  • Supports cloud and on-premise deployment with consistent data models and user experience.
  • The universal journal consolidates financial data for streamlined reporting and analysis and simplifies the database structure.
  • SAP S/4HANA offers flexibility in deployment options, including SaaS, private cloud, and on-premise.