SAP S/4HANA is a future-ready enterprise resource planning (ERP) system with built-in intelligent technologies, including AI, machine learning, and advanced analytics. It transforms business processes with intelligent automation and runs on SAP HANA – a market-leading in-memory database that offers real-time processing speeds and a dramatically simplified data model.

SAP describes S/4HANA as an intelligent (Enterprise Resource Planning) ERP suite of tools created specifically for in-memory computing. Like Business Suite on HANA, SAP S/4HANA runs in memory, but adds Data Model Simplification. SAP is also moving S/4HANA closer to real-time insights and business context while simultaneously freeing resources from repetitive tasks with each new release.

S/4HANA is not a legal successor of any SAP Business Suite product. It is a new product, built entirely on one of the most advanced in-memory platforms today – SAP HANA – and incorporates modern design principles through the SAP Fiori user experience (UX).

SAP S/4HANA delivers massive simplifications (customer adoption, data model, user experience, decision making, business processes and models) and innovations (Internet of Things, Big Data, business networks, and mobile-first) to help businesses Run Simple in the digital economy. Through its approach to building S/4HANA, SAP is re-architecting its solution for modern business processes that the ever-increasing digitization of the world demands. Re-architecting a solution that has been growing over the past 25 years and has, at points, evolved into different data structures and architectures means that SAP has to decide on one data structure and architecture as they move forward. This is the only way that SAP can prepare the solution for increased simplicity and faster innovation cycles.

Lets take a look at the Finance and Supply chain simplifications and benefits expected when moving to SAP S/4HANA-


SAP S/4HANA Finance is a comprehensive set of financial management and accounting solutions, covering financial planning and analysis, accounting and financial close, treasury and financial risk management, collaborative finance operations, and enterprise risk and compliance management powered by the SAP HANA in-memory. Simple Finance cuts out redundancies in the financial data to simplify the data Model and takes the simplification a step further to provide real-time access to financial performance data.


The supply chain tools in SAP S/4 HANA optimizes logistics, manufacturing, and asset management records for SAP Leonardo. SAP S/4HANA Supply Chain integrates with SAP Ariba, SAP Integrated Business Planning (IBP), and SAP Connected Goods. Once this data is stored in a central location, SAP provides machine learning tools that can be used to make data-driven decisions. The ability to analyze supply chain data in real-time increases forecast accuracy and reduces supply chain management costs. S/4 HANA procurement features coordinate with the supply chain management tools to optimize inventory levels, improve production planning, track process improvement, and keep on top of maintenance operations. SAP appears to be focusing primarily on inventory optimization with the current release.

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