SAP System Conversion to SAP S/4HANA.

In recent time there is lots of buzz among SAP eco-system about S/4HANA and system upgrade to SAP S/4HANA.

Let me clears the air about what is SAP S/4HANA? Basically, It’s ERP(Enterprise Resource Planning) system based on the SAP HANA database.

At the same time due to the advancement of technology in programming, User interface, Database, Cloud Computing & commercial viability of IOT & Blockchain, S/4HANA is SAP’s attempt to offer intelligent and intuitive ERP software by leveraging all of it.

For the purpose of this blog, let us try to understand why the organization needs to move/convert/ upgrade to SAP S/4HANA sooner.

Because SAP would not support mainstream maintenance for SAP Business Suite 7.0 beyond Dec2025. (Note: depending on which NetWeaver stack, ABAP or JAVA or dual your organization’s system is based on that your support would end earlier than 2025)

What is SAP Business Suite7.0?

SAP Business Suite 7.0 is nothing but all the core SAP Products which run on Netweaver 7.0 platform (i.e. SAP ERP 6.0, SAP CRM 7.0, SAP SCM 7.0, SAP SRM 7.0, SAP PLM 7.0)

Organizations need to consider reasons/goals pertaining to your organization apart from the fact that SAP would not support mainstream maintenance for SAP Business Suite 7.0 beyond Dec2025

If we look at from SAP’s positioning based on their licensing guidelines, SAP S/4HANA is a new product, not the legal successor of SAP Business Suite. Apart from SAP’s support end for Business Suite on existing NW platform in 2025, The reasoning for your organization to convert of S/4 HANA could be to cash on below additional capability which S/4HANA offers.

Refer below S/4HANA Architecture diagram and HANA capability points outlined below in conjunction.

1.leverage in-memory database (i.e. faster speed of data retrieval based on new data models, no aggregates, no indices)

2.New UI technology (i.e. SAP Fiori based user experience)

3.Embedded AI (SAP promised to make use of intuitive AI alert to make ERP system more compliant and robust i.e. Intelligent core etc.)

4. SAP S/4HANA offers a single solution for a given process, In the past, SAP ERP contained multiple transactions/T codes for one particular business process. with S/4 HANA SAP removed that redundant Transaction and made the process flow simple and easy to follow, this also enhances the usability and end-user experience.

5. Cloud and on-premise model (my hunch is most of the existing implementation would convert/upgrade their system to SAP S/4 HANA On-Premise, not to Cloud version, at least for next 3–5 years)but New implementation would opt either option.

To Conclude, If your organization is using SAP Products, irrespective of which version they are, they need to move to S/4HANA sooner or later. But as outlined above there are numerous benefits to start that journey now.