2/25/2018 by Amy ODonnell Posted in SAP

SAP S4HANA features and benefits

Are you on the fence about upgrading to S/4 HANA?

More than 400,000 companies are using or implementing SAP ERP solutions, and 80% of them are small and medium-sized enterprises. That’s also 87% of the Forbes Global 2000 companies. If you shop online, chances are you’ve used SAP, because 74% of the world’s transactional revenue touches an SAP system, somewhere.


Did you know?

  • 90% of all the world’s data has been created in the past two years
  • Business networks grew 40% between 2015 and 2017
  • By 2020, there will be 9 BILLION mobile users
  • And 212 BILLION “things” will be connected


What Is SAP S/4 HANA?

SAP announced S/4 HANA in February 2015 as its latest version of its Enterprise Resource Planning (SAP ERP) system, designed to run on its advanced in-memory database HANA and providing the most modern user experience, SAP Fiori. It also creates a “core” that connects your company with people, networks, Big Data, and IoT. An S/4HANA migration offers your company a better integration between head offices and other locations using a two-tier placement method and real time analytics. Machine learning gives you better efficiency, automation, and agility for your supply chain and accounting functions.

There’s a lot that’s included in the new S/4 HANA release, which came out on September 15th. HANA is the newest SAP database, and S/4 is the ERP software release that runs on top of it. This suite is intended to run all of a company’s day-to-day processes in an enterprise, consolidating and automating core processes, using a simpler data model. 

The software lets you improve your company's business processes with intelligent autmation, RPA - Robotic Process Automation, AI - Artificial Intelligence and provides embedded analytics to support faster decision making.


Download Infographic - Why SAP S/4 HANA


SAP S/4HANA Cloud is intended to be run in your company’s own data center, SAP’s HANA cloud, or in the public cloud with Azure, AWS or Google Cloud.

SAP S4HANA is the next-generation ERP, and newest business suite for SAP users and customers, built on the advanced SAP HANA platform. It lets your company lower your operating costs by radically streamlining your systems landscape. In addition, it supports various industry-specific requirements with ready-to-go software add-on solutions.

Right now, more than 1,300 companies worldwide are using S/4 HANA, with more to come. In fact, most companies expect to upgrade to S/4 by 2027. SAP’s browser-based Fiori also runs on S/4 HANA, creating a better user-centered work experience for commonly used functions.

Curious about the new S/4 HANA transaction codes? We’ve compiled a complete list for you, available for download on our website.


Expectations for S/4 HANA

About 15 years ago, companies had to upgrade their old existing SAP R/3 sytems to version ECC 6. And now companies are migrating from their current SAP ECC 6 release to the SAP suite on HANA. They certainly have high expectations for the new system, including:

  • 59% of companies anticipate an improvement in current business processes
  • 58% of companies anticipate a reduction in running and maintenance costs
  • 46% of companies anticipate improvements in running reports (simplification and speed)
  • 42% of companies anticipate readiness for SAP’s Digital Core
  • 35% of companies anticipate holistic, real-time access to information
  • 17% of companies anticipate improvements in the user interface


In fact, SAP promises exciting business improvements on their website, such as 20% lower inventory cost, 50% reduction in billing processing time to get your company's invoices out faster and an impressive 30% lower total cost of ownership.

Watch this video to learn more about the S/4 HANA roadmap:


Why Companies Upgrade to S/4 HANA

While there are many reasons for companies to migrate their business models to S/4 HANA, the main business drivers that SAP customers list for migration include:

  • Simplification, 31%
  • Performance, 26%
  • Finance Enhancement, 13%
  • Fiori/Mobile support, 12%

Only about 1,300 of SAP customers are now using S/4 HANA. What about the rest of the companies using SAP?

  • 51% plan to migrate into S4 HANA in the next 5 years
  • 29% are keeping SAP ECC as it is now
  • 19% are still undecided
  • 1% plan to migrate to a different ERP vendor


The Benefits of S/4 HANA

Based on SAP’s claims, the S/4 HANA platform can offer your company (presumable compared to their previous versions of competing software solutions):

  • 70% savings when buying software
  • 15% savings when buying hardware
  • 20% savings on labor


What Can You Expect from S/4 HANA?

The HANA database was built for speed – it is lightning fast compared to other databases. As such, the primary benefits that the platform SAP S/4 HANA runs on are:

  • 1350x faster reporting
  • 1000x faster analytics
  • 200x faster response times

Is your company considering migrating to SAP S/4 HANA? Why or why not? We’d love to know why, so please feel free to comment at the bottom of the page.

Are you ready to learn how to use SAP? Michael Management makes it easy to learn what can be a complicated software to use. We’ve been helping people just like you effectively learn SAP or upgrade their SAP skills since 2000. You can see a full list of our S/4 HANA training courses on our website.

And if you have a team of people to train, check out our SAP training for businesses page. We offer affordable subscription options for small teams and large enterprise plans. 


Author Photo

Amy O'Donnell is a staff writer at Michael Management and curates various blog topics. An experienced writer with expertise ranging from writing web copy, blogs, and articles to white papers and case studies, Amy enjoys writing about food on her personal blog the most.
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