The traditional data model for ERP systems is complex, and a complex data model causes the application code to be complex. Up to 70% of application code is built specifically to enhance the performance of an application and adds no value to the core business function. A complex data model and complex code lead to high efforts in integration with other applications and enhancements impeding agility.
SAP HANA, the database on which SAP S/4HANA is built, can generate any view of the data at run-time, all from the same source tables – doing away with the need for aggregates and indexes. This simplification shrinks the application code needed, resulting in an agile core data model and simplified application code.
The following animated graphic explains the data model: