SAP Business Suite 4 SAP HANA (SAP S/4HANA)
In 2015, SAP introduced SAP Business Suite 4 SAP HANA (abbreviated as SAP S/4HANA) as the successor to its popular SAP Business Suite.
The History of SAP HANA
Behind the technological revolution represented by SAP HANA lies a fascinating story of innovation, challenges, and transformation within SAP. This ambitious project not only changed the way data is processed and analyzed but also shook the foundations of the leading enterprise software company.
Origins of the HANA Project
In the early 2000s, a small group of visionaries within SAP recognized the need to reinvent how companies managed and leveraged their data. Led by then Chief Technology Officer Vishal Sikka, this pioneering team faced widespread skepticism within the company. The idea of building an in-memory database capable of processing large volumes of data in real-time seemed overly ambitious and even unrealistic to many.
However, the HANA team persisted, convinced that this disruptive technology would be the future of enterprise computing. Working in secrecy with limited resources, the HANA developers overcame numerous technical obstacles, from optimizing memory usage to designing highly efficient data compression algorithms.
Innovations of SAP HANA
The most innovative aspect of SAP HANA was its ability to perform complex calculations directly in the database, avoiding the need to transfer data to external systems. Another fascinating aspect of HANA’s development was the interdisciplinary collaboration that took place. The team consisted of database experts, software engineers, data scientists, and hardware specialists, all working together to address the technical and performance challenges as the project progressed.
As HANA took shape, it became clear that this technology would not only revolutionize data processing but also lay the groundwork for a deeper transformation within SAP. The company was forced to rethink its software development approach, adopting agile methodologies and faster innovation processes to keep pace with HANA’s rapid development.
When SAP HANA was finally launched in 2010, after years of intensive development, it was met with enthusiasm from SAP customers and partners. However, the real revolution was yet to come with the launch of the S/4HANA suite, designed from the ground up to fully leverage the power of HANA. This paradigm shift not only transformed how companies managed their data but also sparked a wave of innovation throughout the enterprise software industry.
What is S/4HANA Suite?
This new generation of applications is designed for the digital age and built entirely on the SAP HANA in-memory platform. Unlike a simple update, S/4HANA represents a fundamental change with a simplified architecture, a non-redundant data model, and integrated analytics capabilities.
SAP has focused on making S/4HANA the intelligent ERP suite of the future, ready to handle big data “on memory,” meaning real-time computing capabilities, with a user experience enhanced by SAP FIORI, which significantly improves decision-making ease, simpler management, and even integrated predictive capabilities. Although migrating from Business Suite may be a complex project, the new capabilities and benefits of S/4HANA are well worth it. Let’s explore some of the key components that make up this powerful platform.
Components of SAP S/4HANA (SAP Business Suite 4 SAP HANA)
1. SAP S/4HANA Finance
The financial component is the core of the S/4HANA suite. It simplifies and modernizes major financial processes such as:
Financial Accounting
- Unified and simplified structure for general ledger accounts
- Universal currency conversion in real-time for multi-currency
- Overhead cost engine powered by HANA
- Universal ledger for consolidation without data redundancy
- Accelerators to reduce the time for financial and fiscal closures
Tax Management
- Real-time tax calculation with tax code determination
- Integrated compliance for indirect taxes like VAT/IGV
- Deferred tax provisioning and management of tax obligations
- Automated fiscal reports, provisions, and declarations
Treasury and Financial Management:
- Centralized treasury management with intelligent cash forecasting
- Integrated enterprise risk management
- Agile financial planning with real-time simulations
- Refined access governance and compliance controls
Account Foundation and Parallel Accounting
2. SAP S/4HANA Logistics
This robust component helps optimize all facets of logistics and supply chain operations, including:
Procurement and Sourcing Operations
Treasury and Financial Management
- Simplified acquisition-to-payment processes with intelligent automation
- Supplier risk evaluation and management
- Strategic and collaborative sourcing with integrated negotiations
- Centralized contract lifecycle management
- Enhanced ATP calculation engine, allowing for rapid MRP simulations
Inventory and Warehouse Management
- Real-time inventory control with HANA
- Advanced optimization of picking, packing, and shipping
- State-of-the-art warehouse management with voice and vision
- IoT integration for complete visibility and intelligent logistics
Demand Planning and Effective Response
- Collaborative and intelligent forecasting with AI/Machine Learning
- Hierarchical and integrated demand planning
- Availability checks to prevent stockouts
- Efficient response with optimal replenishment planning
Transportation Management
- Air and ground transportation planning
- Route optimization and freight consolidation
- End-to-end shipment tracking visibility
- Freight cost management and collaboration with carriers
3. SAP S/4HANA Manufacturing
Whether discrete, process, lean, or mixed-mode manufacturing, this comprehensive S/4HANA solution covers all aspects of production and operations:
Manufacturing Planning
- Detailed demand planning based on constraints
- Production scheduling from plant to the cloud
- Collaborative planning with real-time simulation capabilities
- Optimized scheduling and sequencing of orders and operations
Manufacturing Execution
- Production order management and operation execution
- Integration with Manufacturing Execution Systems (MES)
- Plant data capture and process control
- Component and ingredient traceability
Manufacturing Analytics and Quality
- Real-time analysis of efficiency and compliance
- Quality reports and non-conformance management
- Custom dashboards powered by HANA
- Predictive maintenance with IIoT sensor data analysis
4. SAP Fiori
SAP Fiori is the new and intuitive user experience driving the core processes of S/4HANA through web and mobile applications. Some of its key features include:
Modern and Fluid Interface
- Role-based design and frequent tasks
- Consistent and customizable experience across all devices
- Access from any mobile device or web browser
- Configurable start pages and tiles for agile work
Ready-to-Use Applications
- Over 500 ready-to-deploy Fiori applications
- Cover end-to-end business scenarios
- Designed with optimal user experience patterns and controls
- Integrable and extensible with SAP Fiori Cloud
Analytical Application Platform
- Rapid creation of analytics with SAP Analytics Cloud
- Real-time operational and ad-hoc reporting
- Dynamic dashboards with enriched visualizations
- Predictive analytics integrated with AI/Machine Learning
Intelligent Application Development
- Low-code/no-code platform for building Fiori applications
- Agile and modern development with Fiori Elements
- Integration with cognitive services and machine learning
- Flexible deployment in the cloud or on-premises
5. SAP HANA
At the heart of the S/4HANA suite is SAP HANA, the revolutionary in-memory database and analytics platform. Some of its key capabilities are:
Real-Time Analytical Processing
- Complex calculations at lightning speeds in-memory
- On-the-fly aggregations and modeling without indices
- Massively parallel processing and scalability
- In-memory data replication synchronization
Simplified Data Model
- No data redundancy thanks to real-time calculations
- Unified views without the need for OLAP cubes
- Integrated business semantics in calculation views
- Continuous optimization via HANA data management
Integrated Intelligent Servicesl
- Business rule engine, text mining, procedures
- Predictive, streaming, and geospatial analytical libraries
- Integration with cognitive services and machine learning
- Extensibility with modern languages like SQLScript
Advanced Data Virtualization
- Unified access to SAP data, Hadoop, cloud sources
- Real-time replication and intelligent data integration
- Distributed processing and query optimization
- Dynamic management of data levels and temperature
With all these components working together seamlessly, SAP S/4HANA (or SAP Business Suite 4 SAP HANA) delivers business agility, real-time visibility, integrated intelligence, and a future-proof platform. Migrating from SAP Business Suite may seem like a significant challenge, but the rewards are substantial. If you need a detailed and practical guide on how to plan and execute your migration to SAP S/4HANA, check out our Complete Migration Guide.
And if you want to learn more about our services, please contact us.
Note by Gilda Valderrama
Chile
México
Estados Unidos
