S/4 HANA is designed to be the digital core of the Intelligent Enterprise. In our previous blog, we have spoken about the concept of the Intelligent Enterprise.
It is important to remember that S/4 HANA is not a successor or next version of any existing SAP product. It is a completely new product, built on the foundation of the SAP HANA database. It comes with new innovations and capabilities across industries and across functions like Finance, Sales, Manufacturing, Procurement, etc. S/4 HANA is an integrated Business suite that can be deployed on-premise or on-cloud. Hybrid deployment options are also available. It also comes with SAP Fiori as its front-end, bringing the power of cutting-edge UIUX to ERP.
Here are some of the innovations which together make S/4 HANA a truly Intelligent ERP:
- Re-imagined business models:
S/4 HANA has enabled organizations to re-imagine their business models with new innovations such as subscription-based products and services, additive manufacturing, IoT/sensor-based asset management, and Intelligent Robotic Process Automation (IRPA). These innovations will create a huge impact on manufacturing efficiency and the organization’s ability to respond to dynamic market trends.
Benefits include better asset utilization, improved manufacturing throughput, and improved operational efficiencies. - Embedded functionalities as part of S4HANA:
S/4 HANA comes with a host of embedded business functions, such as Warehouse Management (WM), Transportation Management (TM), Master Data Governance (MDG), Availability to Promise (ATP). SAP S/4HANA provides next-gen production planning (MRP live), dynamic inventory, constraint-based planning, etc. All these end-to-end processes are optimized on the HANA platform for faster response to market changes.
Benefits include improved customer satisfaction, optimized inventory levels, and reduction in days-to-close-books. - Insight to action:
S/4 HANA features a brand-new UX thanks to SAP Fiori at the front-end, which also provides in-the-moment, embedded analytics, and multi-dimensional reporting.
Benefits include a reduction in AP errors, improvement in sales productivity, reduction in reporting costs. - S/4 HANA Simplifications:
S/4 HANA is based on streamlined data models. It also promotes the overall IT landscape simplification which yields better performance and scalability. Further, S/4 HANA allows for flexible deployment options. On-premise, cloud, or hybrid. All these simplifications lead to a reduced data footprint, lower cost of ownership, reduced FTEs to manage the landscape.
S/4 HANA: New Capabilities in LoBs
The Intelligent ERP means that every employee, across functional departments, must be able to work smartly, efficiently, and make data-driven decisions faster.
S/4 HANA harnesses artificial intelligence to simplify certain business processes, optimize others, and bring in innovation to drive maximum results for the business.
Let’s take a look at these new capabilities processes across some Line of Businesses:
FINANCE
In the Finance module, S/4 HANA has brought in new innovations in terms of group reporting and integrated financial planning with the SAP Analytics Cloud. It has simplified accounting processes as well as financial close processes. Processes in areas such as financial risk and treasury have been improved. S/4 HANA increases the agility of these processes with end-to-end analytics and gains valuable insights.
A case in point for the successful implementation of these new innovations is how Hershey, a leading candy company, improved its brand management and customer experience by delivering faster report generation and therefore faster insights into financial processes.
John Zimmerman, Director, Financial Data Systems, The Hershey Company said: “SAP software helps us evaluate, manage, and make better decisions in many areas, from brand and customer performance to advertising spend.”
You can read the detailed case study here.
MANUFACTURING
Predictive MRP is one of the enhancements in S/4 HANA manufacturing process innovations.
SAP S/4HANA also improves production planning, accelerates operations, and helps optimize manufacturing production intelligently. From design to complex assembly processes to quality management, customers have been achieving extraordinary results with S/4 HANA.
Real-time information from the business, from suppliers, and even the production plant floor helps coordinate manufacturing operations.
Methods such as lean control, continuous improvement, and just-in-time replenishment help optimize the flow of materials and bring efficiency into the manufacturing processes. Get more details here.
SALES
S/4HANA for sales allows companies to manage sales activities intelligently. This includes managing sales performance, supporting sales managers and their teams. Customers implementing S/4 HANA for Sales have achieved solid results in maximizing revenue through intelligent order and contract management, improving cash flow by managing order-to-cash processes, incentive and commission management, deal size through precise solution configurations, and much more. Want to learn more about S/4 HANA innovations in Sales? Click here.
Similarly, new innovations like Predictive Analytics in Inventory Management help monitor stock in real-time and take decisions regarding slow-moving items, providing optimal inventory control. Read more on how S/4 HANA can help businesses create an agile and connected supply chain.
S/4 HANA automates sourcing by collecting, analyzing, and accessing all sourcing data points in one system. It centralizes procurement processes and reduces procurement costs by consolidating requisition costs across business units and across locations. Read details here.
S/4 HANA Adoption: Journey Towards Digital Transformation
As we have seen in the discussion above, organizations that have made the move to S/4 HANA – the next-generation ERP, have demonstrated massive improvements in performance and optimization of business processes.
More and more businesses are adopting S/4 HANA in their journey towards the Digital Transformation. Many organizations that are currently using SAP ECC or other legacy ERP systems are migrating to S/4HANA to harness the capabilities of this Intelligent ERP. To help customers in their S/4 HANA migration journey, SAP provides three typical transition scenarios to outline their own path to the S/4 HANA adoption depending on their own unique IT landscape and business requirements. We will discuss these migration scenarios in our next blog.
In conclusion, every organization must chart its own course in the journey towards digital transformation. While this can be a daunting task, consulting partners like Sapours, who are experienced in typical S/4 HANA migration scenarios can provide valuable assistance and guidance in planning your digital journey.
SAP also provides a self-service tool to give customers a roadmap to establish a digital core for their business. The Transformation Navigator helps you assess your current IT landscape, understand trends in your industry. Try the tool today and instantly download a comprehensive report with recommendations about how SAP products can help you on your Digital Transformation journey.
Talk to us to discover how Sapours can help you transform your organizational processes with a custom migration roadmap to move to S/4 HANA. Schedule a free consultation call with us today.
Author Details –
Pravin Malve.
Delivery Lead S4 HANA
Experienced Lead Consultant with a demonstrated history of working in the information technology and Service Industry. Skilled in Business Process, SAP Production Planning, Quality Management, SAP implementation, HANA implementation, Requirements Analysis, and Pre-sales.
