Seven years have passed since SAP introduced its most significant update with the launch of its enterprise resource planning (ERP) software, SAP S/4HANA. No other development has generated as much excitement, confusion, and uncertainty among SAP customers as S/4HANA. Companies have had difficulty with this process, from understanding the basics to transitioning to S4HANA. Enterprise-ready SAP S/4HANA migration represents a significant upgrade to the existing ERP solution, and transforming the former ERP system is quite a challenge.
There are numerous reasons for companies to migrate to SAP S/4HANA. 37% of companies have observed a revenue increase from S/4HANA. With simpler data models, more user-friendly interfaces, improved integration, and advanced real-time analytics, you will wonder how you managed without S/4HANA.
Continue reading to discover more about the updated features and benefits of SAP S4 HANA software, which explain why this newcomer is overshadowing the legacy ERP.
9 Major Business Benefits
Experts highlight various advantages of SAP S/4HANA for businesses, such as enhanced flexibility, reduced costs, and accelerated analytics thanks to the HANA in-memory database. Using the system may be simpler than using ECC, and it may offer an easier transition to the cloud. Below are nine of the major business advantages of SAP S/4HANA.
1. Effortless Business Model Updates
Imagine yourself working in the finance department of a multinational company with various subsidiaries and diverse product lines across different regions. It is not easy to prepare annual financial reports for such a company. You need to collaborate with various groups, collect data, and create reports. The work is tedious and requires time and resources. However, with S/4HANA, you can effortlessly utilize the process closing task application that has already been built. You can plan to monitor, access, and analyze data from various groups, connect with other individuals and organizations, and accelerate the closing of books.
This serves as simply one instance of S/4HANA’s ability to simplify complex business tasks. S/4HANA offers streamlined applications for various business functions, including finance, logistics, and warehouse management.
2. Simplified ERP integration for growth
In the realm of consumer packaged goods, companies grow into new markets and enhance their product lines with complementary items by acquiring smaller brands. Before SAP S/4HANA, integrating these acquisitions into their core ECC systems required considerable time and resources. With S/4HANA, businesses can maintain acquisitions on the SAP public cloud rather than integrating them into their core operations.
3. Lower ownership costs
S/4HANA is a cost-effective ERP solution as it saves on unnecessary hardware and software license costs. Thanks to advanced data compression implemented in the HANA database, server requirements are reduced and hardware costs are minimized. The S/4HANA platform provides all necessary analytical, transactional, and operational functions, eliminating the need for middleware software and resulting in minimizing software costs. Without accounting in the business benefits of S/4HANA, companies can reduce their total cost of ownership (TCO) by 37% over only 3 years. Low estimated that companies can achieve an 11% to 17% reduction in IT costs by migrating from the old physical infrastructure to the more cloud-native environment supported by S/4HANA.
4. Accelerated analytical insights
Thanks to HANA’s new in-memory processing, instant insights and actions are now possible in S/4HANA. S/4HANA collects and processes live data through embedded analytics, enabling real-time application of insights into business processes. Over 500 ready-to-use Fiori analytics applications are available on mobile. Companies can develop their use cases and incorporate them into their system as necessary. Fiori enables real-time planning, execution, reporting, and analytics based on live data.
The centralized data allows for improved and accelerated cross-functional coordination among business departments.
5. Precision Forecasting for Optimal Planning
In S/4HANA, embedded AI and machine learning applications are slowly advancing to enhance modeling, predictive outcomes, and forecasting. For example, a retailer can use the Universal Data Element Framework to forecast demand using historical data while incorporating external elements such as weather conditions.
6. Effortless operation with flexible deployment
Either on-premises or in the cloud, S/4HANA offers flexible deployment choices and ease of use to enable business agility. Updating business processes is made simple for companies by the system. S/4HANA enables integration, whether it’s an acquisition, merger, or the addition of a new sales channel.
A corporation that uses SAP and non-SAP IT systems can be purchased by an organization having S/4HANA. It typically requires an extensive amount of time and resources to aggregate, index, and integrate data using an old ERP. Bringing the system onto the SAP cloud without integration is an option offered by S/4HANA.
7. Seamless and User-Friendly Design
Many organizations continue to fall behind, but people now want the software they use at work to function similarly to the apps and programs they use at home. Here, S/4HANA assists through apps on various devices, enabling users to create and access business processes and data easily. Additionally, Fiori has made the apps look a lot cleaner and simpler than the mobile apps we use. Mobile applications make it simple for users to enter data and monitor the status of a work, whether they are in the office or a remote location. Additionally, the apps include collaboration features with Google Workspace and Microsoft Teams. As a result, employees can collaborate in real time and reduce the inefficiencies driven by information lags.
8. Automating Repetitive Tasks
With S/4HANA, companies can use Robotic Process Automation (RPA) solutions to automate tasks that are performed repeatedly. This frees employees from tedious, time-draining work and allows them to focus on tasks that are high-value and high-priority. More than 150 RPA bots are available for users to leverage in S/4HANA. Companies can advance this even more by incorporating AI and ML technologies to generate smart insights from data collected through automation.
9. Innovation
S/4HANA makes business processes more efficient. Businesses can rethink their processes and business models, concentrate more on client requirements, and innovate to stay ahead of the competition as a result of its features, which increase the organization’s productivity and efficiency. As the organization innovates, S/4HANA’s embedded analytics, real-time data processing, AI, and ML capabilities ensure that business processes are prepared for the future. Because of these advantages, businesses starting a digital transformation must upgrade to S/4HANA.
In Conclusion
Migrating to SAP S/4HANA is a game-changer for businesses looking to enhance efficiency, improve decision-making, and stay ahead in today’s competitive landscape. With benefits like real-time analytics, streamlined operations, reduced ownership costs, and seamless scalability, SAP S/4HANA empowers organizations to drive digital transformation and long-term success.
However, transitioning to a new ERP system can be complex, requiring strategic planning, technical expertise, and industry best practices. That’s where Accely comes in. As a trusted SAP Gold Partner, Accely provides end-to-end SAP S/4HANA software solutions like migration, implementation, and support services, ensuring a smooth, efficient, and cost-effective transition tailored to your business needs.
