Explaining SAP Software Application Strategy

This Learning Journey will focus on the fundamental technologies for SAP S/4HANA.

In an on-premise scenario, these technologies are implemented as separate components. In a cloud scenario, these technologies are a part of the SAP Business Technology Platform (SAP BTP).

SAP is the world's leading vendor of enterprise resource planning (ERP) software. It is headquartered in Walldorf, Germany, and conducts business in over 180 countries.

The primary focus of SAP is illustrated in the following image:

We will now examine these five areas.

SAP develops enterprise software for large organizations, small to mid-sized businesses, governmental entities, and non-profit organizations.

Its primary software product is an Enterprise Resource Planning solution, or ERP system. An ERP solution is for managing core business processes such as human resources, finance, accounting, purchasing, inventory management, and so on.

In addition, SAP offers additional ERP-related solutions like the following:

• SAP Ariba, a cloud-based procurement system
• Concur, a time and expense management system
• SAP SuccessFactors, a cloud-based human capital management system, and a wide variety of other supporting applications

SAP's flagship ERP system is SAP S/4HANA and this course focuses on the technologies that support an SAP S/4HANA environment.

SAP applications contain embedded reporting and analytic tools. However, SAP also provides external tools for custom reporting and analytics. These include SAP Business Objects Business Intelligence (BI), which is a set of on-premise analytic tools, and SAP Cloud Analytic Platform, which provides a set of cloud-based tools and reporting capabilities.

SAP software provides mobile access to business data and applications at any time and any place. SAP Afaria enables secure mobile access from any device to any operating system. With SAP Fiori UX, SAP is also supporting the use of software on mobile devices. There is also a mobile development kit for developers and SAP Mobile Services on the SAP BTP.

SAP's primary DBMS is SAP HANA, an in-memory, state-of-the-art database. All SAP applications support the use of SAP HANA as a database.

In addition, SAP offers other database products:

• SAP ASE, which is designed for high-speed OLTP applications
• SAP IQ, which is built to be a data warehouse
• SAP SQL Anywhere, which can be used as an embedded database in small environments
• SAP MaxDB, which may be used by specific SAP applications

SAP S/4HANA runs only on the SAP HANA database.

Cloud computing is the on-demand availability of computer resources without direct active management by the customer. The cloud is a major component of SAP's application strategy.

SAP operates its own cloud system for customers. It also offers support for SAP software on major cloud hyperscalers, such as AWS, Microsoft Azure, Google Cloud, IBM Cloud, and Alibaba Cloud.

Finally, SAP continues to support on-premise systems for SAP customers who are not in the cloud. This support also extends to hybrid solutions for customers who have some components in the cloud and others on-premise.

SAP S/4HANA is at the heart of SAP's strategy to create an intelligent, sustainable enterprise. It is SAP's next-generation ERP system.

SAP S/4HANA manages the core business processes that are common to every organization.

These processes include, for example, tangible assets, financial resources, materials, and human resources. SAP S/4HANA facilitates the flow of information between all business functions inside the boundaries of the organization. It also helps you to manage the connections with employees and outside stakeholders, such as customers, partners, and suppliers.

SAP has a long history of providing ERP solutions, as shown in the following image.

ERP systems are vital to the effectiveness of an organization: not just recording transactions, but performing operations efficiently and effectively, combining individual application steps into business processes, and understanding your internal and external environment.

You are now able to describe the main components of SAP's software application strategy and to describe SAP S/4HANA.