S/4Hana: the faster, more efficient and more transparent ERP

For a decade now, the world has entered a digital era in which access to real-time information greatly facilitates exchanges between the various economic players in society. This phenomenon is present at every level. From education to politics, including culture, and also making its way into the business world, no one escapes it. In addition, connected tools have provided homo economicus, in other words the rational man, with instant access to a set of information enabling him to maximize his utility by making the right decisions at the right time. In a context where chrono-competitiveness has become synonymous with growth, enthusiasm is widespread.

Businesses are not immune to this phenomenon. However, application solutions are not always suited to effectively and quickly deliver the information needed for decision-making. Depending on the contexts and architectures in place, processing times can be long. Data quality is not optimal due to a multitude of complex sources to reconcile (accounting, analytics, logistics, etc.), and, by design, decision-making is slowed down.

Structured information has become a “rare commodity” and a transformation approach in information processing has become essential. With older technologies, we were limited to “Broad & Deep” analysis or “Speedy & Simple”. Each of these approaches has its strengths and weaknesses, but they cannot work together.

Today, the S4/Hana solution is presented by SAP as the answer to this dichotomy. The new solution includes the classic ERP functionalities as they are known by all companies, while being faster and geared towards transparency. S/4HANA is therefore the new version of SAP’s ERP, faster and more efficient with an SAP HANA platform, a Simple Finance solution and a new user experience complemented by SAP Fiori.

S4/HANA runs exclusively on an SAP HANA database

This architecture changes the data storage approach by introducing a single database enabling operational transactions(OLTP – online transaction processing), as well as data analysis and reporting(OLAP – online analytical processsing) through thein memory functionality, which increases processing speed and makes it possible to view and deliver information in real time.

Simple Finance: towards streamlining the Finance data model

SAP’s new Financial solution, Simple Finance, is a prime example of the current transformation in the structuring of information. The changes are not at the process level, but rather at the level of streamlining the Finance data model. With Simple Finance, we move to a simplified common base, in which it is no longer necessary to create aggregates or manage data replications from one application to another. All information is stored and centralized on the same platform and in a new common line-item table reconciling the worlds of Accounting and Management Control. This base is also more flexible thanks to a dynamic and extensible, column-based structure, which enables more detailed and deeper analyses while keeping processing time to a minimum.

To illustrate the gain, the Data Footprint of an SAP ERP in a traditional database is estimated at 7.1 TB; the same ERP, in a Hana database, sees its Data Footprint reduced to 1.8 TB. The estimated Data Footprint of an S4/Hana system is 0.5 TB, i.e., 14 times less storage space than a traditional platform!

The Simple Finance innovation can therefore be summarized in 3 key concepts: Transparency, Efficiency and Dynamism. Transparency is made possible through the use of a single data source (one single source of truth); efficiency is represented by real-time processing; and dynamism is a consequence of the previous two. Information is considered “reliable”, complete and available in real time, which makes it possible to perform detailed analyses and projections on the fly.

Now for user experience as well with SAP Fiori

The user experience is improved by adapting and simplifying input screens to users’ needs (KPI, Dashboards, etc.); mobile access is also made possible. Today, there is no pre-packaged flow in SAP Fiori that can be used directly. It is therefore necessary to develop the various Launchpads in order to fully benefit from the functionalities offered such as: dashboards, invoice entry, approval processes, etc. As a reminder, SAP Fiori is also available in a classic configuration as an add-on and in all cases requires a significant development effort at the outset.

The S/4HANA suite is now available On Premise or On the Cloud and is becoming the new version of the ERP. However, it is necessary to have migrated to a HANA database to benefit from it.

At present, only the finance layer is available (Simple Finance), and it is compatible with the classic logistics modules. Simple Logistic is on SAP’s roadmap and should be released during 2017.

Are you ready to move to S/4 HANA?

Do you have questions about the evolution of your IT architecture? Would you like to better understand the new S/4HANA and Simple Finance solution? Would you like to migrate to S/4HANA? MeltOne Advisory, through its certified SAP teams and our partners, is able to support you from scoping through to the implementation of this new solution.

Would you like to know more? Please do not hesitate to contact us: jsaccona@meltone.com

Our trilogy of S/4HANA articles continues; the next installment will be dedicated exclusively to Simple Finance.