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The new S/4HANA - advantages when upgrading from ECC

SAP ECC s4HANA

S/4HANA is the direct successor to the previously used SAP software ECC. Thanks to the modern approaches and the practical structure, S/4Hana offers numerous advantages over its predecessor. Significantly larger amounts of data can now be processed with better performance and business processes can be further optimized. 

It is worthwhile for companies to deal with this topic early on. Because the support and further development of the old systems is not permanent. The modern versions are gradually replacing the old standard and create an advantage on the market through faster processing.

In this article we will inform you comprehensively about the advantages of S/4HANA. We accompany you as a customer on your way, to effectively integrate the new SAP system into your operations. Learn more about the benefits and see how it compares to its predecessor.

Be honest, are you going in circles with the CEO, IT and departments on the subject of SAP S/4HANA transformation and the switch from SAP ECC to SAP S/4HANA?

Are you also in the "hü" and sometimes "hott" mode and try that Change from SAP ECC to SAP S/4HANA Planning products, defining a sensible strategy and in the end you also want the decision that then leads to binding implementation?

We see many companies wanting or doing just that, but...

  • do one preliminary analysis after another, which costs effort, resources and money
  • are too technical and focus on a technical migration strategy
  • disregard the requirements of the departments
  • whose IT is alone in the preliminary analysis
  • getting lost in the details and still not working through the essentials
  • don't have the most important components of a holistic SAP S/4HANA strategy on their radar
  • didn't pick up and involve top management
  • ultimately come to no decision
  • wondering why not
  • keep going in circles

Find out everything about this promising topic now and contact us directly if you have any questions!

What is SAP S/4HANA anyway?

SAP S/4HANA is an ERP software solution from the manufacturer SAP SE and successor to the previous core product SAP ECC or SAP R/3. The "S" in the name stands for the "Simple" principle, which the ERP suite exhibits due to the improved user interface and simplified data model. The "4 " stands for the fourth Product generation and the abbreviation HANA (Hhigh performance Analytic Appliance) for the underlying database technology, which enables data processing and analysis that is many times faster with in-memory technology.

SAP S/4HANA is considered the next-generation intelligent ERP platform. 

SAP will end the maintenance and further development of the predecessor system R/3 in 2027. It is therefore essential for SAP customers to switch to S/4HANA. S/4HANA offers companies and top management many advantages. The customer-specific requirements for digitization, process automation, data harmonization, the use of artificial intelligence, increasing corporate efficiency and improving quality and flexibility are becoming the focus of attention in order to achieve corporate goals.

S/4HANA advantages compared to ECC 6.0

Most companies currently using SAP are using the SAP ERP ECC 6.0 version. ECC is the direct predecessor of S/4HANA, but in this case this means that it is based on the knowledge of 30 years ago. ECC was developed in 1992. At that time the world was not as digital as it is today and many technologies that we take for granted today had not yet been developed at that time. For this reason, the system is not adapted to today's needs.

Current status of SAP ECC 6.0

Insufficient performance: In recent years, information in its evaluation in large quantities has become increasingly important. When ECC was developed 30 years ago, the development possibilities, especially of databases, were not yet sufficiently advanced to efficiently process today's data volumes. This system is thus quickly confronted with performance problems.

Blocks new technologies: As already mentioned in the previous point, SAP ECC 6.0 is not state-of-the-art. For this reason, the system often cannot be combined with or use new technologies. Companies that are able to use the latest technologies gain a competitive advantage, which in turn puts everyone else at a disadvantage. In the long run, this advantage can leave competitors behind.

Module based system: The structure of the SAP ERP ECC system is modular with individual SAP modules such as SAP MM, SAP SD, SAP PP and others. These consist of further sub-modules. The individual modules are clearly separated from each other, but can be easily networked.

The SAP S/4HANA advantages

smart business: SAP S/4 is a non-module-based system. With this system, the processes in the company are merging ever more closely. In addition - unlike the ECC version - the core is severely limited. In order to optimally tailor the system to each company, the new Business Suite can be individually expanded. Functional, intelligent extensions such as SAP Ariba, SAP Leonardo (AI, IoT [Internet of Things]) and SuccessFactors can be used for this.

Modern architecture and fast system: S/4HANA is a scalable and robust system that can be individually tailored to a company. Due to the use of primary data, a simple and efficient data structure, the system is very performant. Since S/4HANA has a wide range of connection options, the entire data management system can be mapped with S/4HANA. It can then be used as the single source of all information, the single source of truth. 

Productivity enhancing: S/4HANA was developed to be browser-based and thus offers device- and location-independent use. Workflows available in the program help with business decisions and facilitate reporting processes as well as everyday business in general.

An essential part of S/4HANA is the processing and analysis of large amounts of data in real time and thus a significant simplification of the data model. Furthermore, high-performance data storage and innovations such as the open in-memory platform for forecasts. These are possible thanks to the SAP HANA database, which forms the foundation of S/4HANA. Additional benefits are shorter innovation cycles and shorter system response times due to the reduction in code lines and tables. Costs can also be reduced thanks to the low maintenance requirements. In general, it can be said that the interface concept, which bears the name SAP Fiori, is much more user-friendly than before thanks to intuitive usability, role-based work and availability on different devices.

Why you should take advantage of SAP S/4HANA?

Give your business an advantage by having access to the new technologies before your competitors by adopting S/4HANA in a timely manner.

Latest information: In contrast to ECC, larger amounts of data can be processed and combined through the SAP HANA database. This process also works faster than in the ECC system. This means that all employees can access live data and are therefore up to date. Modern technologies such as machine learning and artificial intelligence can be used on the basis of the new database. In order to prevent a failure, machines can make predictions about necessary maintenance themselves. The costs caused by the failure of a machine and the resulting stop in production can thus be avoided.

User-friendly interface: The new user interface SAP Fiori creates a completely new user experience. Thanks to an intuitive and clear structure, new SAP users can also get along well with the system. Furthermore, the processes can be carried out more efficiently and in less time.

Scaling: The S/4HANA system can grow with your business and be customized to new challenges to meet the needs of your business.

Flexibility: With S/4HANA, SAP has kept the core of the business unit relatively small to give companies the chance to customize the system. It is possible to connect and integrate different applications to the system. Examples of this are SAP Ariba or SuccessFactors. 

Scarce human resources: In order to have an optimal system in the company, it must be set up individually. Due to increasing migrations, the SAP partners are working to capacity and the availability of consultants is becoming increasingly scarce. Let us advise you in good time to secure a competitive advantage.

Process recording: In order to optimally adapt the system to your company, we analyze your processes in order to implement them in S/4HANA. We implement this undertaking in detail and extremely thoroughly so that you end up with a perfectly tailored system.

What other services does INSIRE offer with S/4HANA Transformation?

The finance departments in particular are now facing the changeover, as the software company SAP is phasing out support for older ERP system versions from 2027. This means that every SAP customer with an ERP ECC 6.0 system must switch to the new ERP system S/4 HANA. The group-wide ERP migration is a complex process, since it usually involves system structures that have grown over several years. 

We help you to master the transition and bring our expertise to the table!

How do we do it? 

We combine our previous finance strength with a newly aligned SAP S/4HANA consulting area and thus support our customers from start to finish. We have strengthened ourselves with experienced consultants and are expanding successful partnerships. The aim is to implement an integrated system for optimizing the real-time processing of financial data and to reduce or replace in-house developments in the projects.

We accompany you in the central steps in the design of your financial processes! This is how we cast a perfect foundation for the subsequent S/4 implementation. A quick project initialization and a comprehensive, structured approach characterize our project approach and help to achieve the best possible result!

Our S/4HANA strategy in 3 steps:

Chart S/4Hana transformation

At the beginning, the status quo is crucial and the status quo of the processes is extremely important. Make a meaningful preliminary analysis with us and save effort, resources and money. We not only focus on the technical migration, but also involve the top management with targeted assessments. We have the most important components of a holistic SAP S/4HANA strategy on the radar for you. 

Join us on the path to the future of financial platforms. Get in touch with us, our SAP S/4HANA experts will be happy to advise you! 

Do you now have questions about the S/4HANA transformation? Are you trying to build up the necessary know-how in your department or do you need support with a specific question in the area of ​​SAP S/4HANA FICO?

Partner SAP S/4HANA Markus Pannicke

Markus Pannicke

Partners S/4Hana

markus.pannicke@insire.de

+49 (0) 162 - 265 - 506 - 3

Benefit directly from a free Consultation!

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