SAP S/4 HANA – the next generation business
suite for digital businesses
In a
digital world, information can be measured and made available across the globe instantaneously.
Sailing on the backwind of new technologies, this is a key enabler for
redefining business processes. Fundamentally, it means that a digital business
needs to deliver on the ubiquitous promise to truly serve a segment of one: The
end consumer. The whole value chain becomes a highly flexible organism to be
run in real time – it becomes a LIVE Business.Since
the launch of SAP S/4 HANA two years ago, it has firmly established itself as
the next generation business suite to support digital businesses. It has the
ability to unite enterprise-wide processes into a synergistic digital core. At
the core of the innovation with S/4 HANA is the revolutionary in-memory
capabilities of SAP HANA that allows both transaction and analytical data to
reside in one system, which in turn provides our customers with the ability to
analyze, report, simulate and predict in real time, to make smarter and quicker
business decisions. In addition, with SAP FIORI we offer a role based user
experience that looks great and really delivers intelligence to the user in an
intuitive.Clearly,
this has resonated well with the market and S/4 HANA now boasts over 5400
customers, making it the fastest growing product SAP has launched.
SAP S/4 HANA Cloud – the next generation, intelligent
ERP in the cloud
This
brings me to SAP S/4 HANA Cloud, the Intelligent Cloud ERP offering from SAP and
the announcement on Feb 9th at the SAP Capital Markets Day. At this
event customers, partners and SAP executives showcased the new S/4 HANA Cloud solution
from the trusted global leader in ERP. S/4 HANA Cloud is our ERP cloud offering
that benefits from the same game changing innovations we delivered with
S/4 HANA, but now via a SaaS delivery model, all managed and delivered by
SAP. SAP S/4 HANA Cloud is the cloud ERP solutions best suited for
organizations with more than 1,500 employees, and for subsidiaries and
operational units of larger enterprises.
Why ERP Cloud and Why now?
Moving
a company’s core to the Cloud enables a fast deployment and decreases time to
value. Additionally, it fosters rapid innovation cycles and reduces TCO and
TCI, matching a Fit to standard and enabling agility in consumption. The end to
end experience is at the heart of it. But for customers and partners there are
new rules of the game to adapt and digitally transform as well. Technology
induced innovation to change the Corporate fundamentally goes along with
business changing capabilities for each Line of Business. Enterprise customers
expect SAP to re-define, renovate and innovate its core asset – ERP, and
deliver it as a SaaS deployment model.We
have seen for some time clear indicators that the market is shifting to consume
ERP in the cloud and that this is set to grow rapidly in the coming years.
There is a significant amount of evidence out there that points to the growth
of the cloud, but for me there are a number of leading indicators from the
analyst firms that show how fast things are moving. Most analyst firms predict
up to 20% growth rates in the next 24 months for the Cloud ERP market.
According to the analysts, Finance is leading the charge as the next LOB
already shifting to a SaaS approach, especially for more service centric
companies.We
are confident that, using our heritage, knowledge and expertise built up as the
ERP market leader over decades, and our leadership with S/4 HANA supporting our
customers managing their digital transitions, we can support our customer’s
journey to Cloud ERP.
What is different with S/4 HANA Cloud
It’s
easy to imagine that a Cloud ERP solution is simply a watered down version of a
full blown ERP on premise system, compromised in technology or ability in some
way. With S/4 HANA Cloud, this is not the case. With end to end processes
supporting finance, plan to product, and order to cash and procure to pay we
offer enterprise-ready functionality for digital businesses.However,
more importantly S/4 HANA Cloud shares the same in-memory architecture as
S/4 HANA and so offers the same benefits. With analytical and
transactional data together in the same system, you have the performance to run
a truly “live” business, run on the fly aggregations to slice and dice data to
provide immediate insights based on real time data. This provides the trusted
information it needs to make fast decisions across the business.S/4 HANA
Cloud consists of a modular set of Editions that provide a flexible, extensible
ERP platform that will scale up and down according to business needs. New
capabilities and users can be added as you need them, quickly and easily.A key
design principle that has driven the direction of S/4 HANA Cloud is the need for
an easy to use, responsive and consistent consumer-grade ‘business user’
experience.
Through SAP FIORI 2.0 and embedded analytics we have realized this
requirement and helped to release the intelligence and data within the system
to the user in a meaningful way that drives productivity and smarter
decision-making regardless of device. Key innovations such as Enterprise
search, Overview pages and the Fiori Launchpad help to navigate and push key
information to the users, which in turn changes the way software is
traditionally used and drive changes in the way business is done in a digital
world. Differentiating is also the inclusion of an digital assistant,
leveraging machine learning capabilities to make decisions more intuitively and
based on all available internal and external data – learning as you go. More
about this later.SAP
S/4 HANA Cloud has been developed to co-exist in a heterogeneous system
landscape with native integrations to other SAP solutions and open interfaces
for further integrations and extensions via the SAP Cloud Platform to anything
out there.And
one more – With a shared data and semantic model with S/4 HANA on premise and
S/4HANA Cloud, we are offering a naturally best in class two-tier ERP
landscape (2Tier). This is a huge advantage and reduction of error prone and
heavy effort consolidations and integrations between headquarters and
subsidiaries, during set-up and even more important during the lifecycle of
your operations and the changes you want to apply.
Finally,
S/4 HANA Cloud uses SAP Activate proven best practices content and methodologies
to enable customers to deploy and go live with an ERP cloud solution.Want
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