Using S/4HANA in asset management

SAP S/4HANA: Unlocking new possibilities in asset management

SAP has introduced S/4HANA, an ERP suite designed to serve as the foundation for companies’ digital transformation. S/4HANA offers a wide range of technologies and capabilities that support the digitalization of business processes.

A key strength is its ability to process and use data from business processes in real time. The suite is also built for use with SAP Fiori, which greatly enhances usability. In addition, the SAP Intelligent Asset Management Suite can be seamlessly connected to S/4HANA via the SAP HANA Cloud Platform, along with its IoT services and applications. 

These innovations can positively influence all areas of a company – from FI/CO processes to customer interaction. Plus, they also open up significant opportunities for asset management. 

The strategic importance of making the switch

Switching to S/4HANA is not without its challenges, primarily because it is far more than just a technology project. 

Organizations aiming to fully leverage the potential of this next-generation ERP suite and drive true digital transformation must address a range of strategic questions. This, in turn, often requires adapting – or even completely redesigning – existing business processes. 

Why switch then?

Avoiding the transition to S/4HANA is not a realistic option. The reason is simple: There is no escaping digital transformation. Sooner or later, every company must act if it wants to remain competitive. For SAP users, there is an additional driver: SAP ERP will only be supported until 2025. By that point at the latest, organizations will be required to switch to S/4HANA. 

In light of this, it is wise to address the following questions early on: 

• How should the company position itself strategically? 

• What role will S/4HANA play in this? 

• What process and master data adjustments will be required? 

• What could a suitable roadmap look like? 

From the outset, asset management should be a key consideration. 

From real-time analysis to planning

To fully understand S/4HANA’s potential in asset management, it is useful to first consider the fundamental role of IT in this area. 

IT continuously collects and analyzes data from all asset management processes. These insights form the basis for decisions aimed at making asset management more effective, efficient, and safe. The ultimate goal is to maximize the company’s value creation through professional asset management while keeping associated costs to a minimum. 

This raises key questions such as: 

• Which machines and systems are truly essential for value creation? 

• How can they be operated at peak efficiency? 

• Which maintenance strategy is most suitable? 

• When should an asset be replaced with a new machine or system? 

Additional benefits with S/4HANA

Until now, many companies have relied on SAP ERP or SAP Plant Maintenance (SAP PM) to answer these and similar questions. However, S/4HANA goes a step further, making asset management even more effective, efficient, and safe. 

Another key advantage is the consolidation of process and machine data, enabling a truly holistic view of asset management in line with the ISO 55001 standard. In this context, the following aspects are particularly important. 

Real-time analytics and embedded analytics 

Technical metrics such as Mean Time To Repair (MTTR), Mean Downtime (MDT), And Mean Time Between Failure (MTBF) are essential for evaluating asset management performance. Equally important are commercial KPIs that assist in tracking and analyzing costs. 

These KPIs rely on vast amounts of data. Traditionally, analysis has been limited to historical data. With S/4HANA, companies can now leverage real-time information to create forecasts and simulate different scenarios. This makes it possible to detect risks early on and take timely corrective action. 

In short, real-time and embedded analytics help companies switch from a reactive stance to a proactive one, allowing them to anticipate challenges instead of merely responding to them. 

Simplification of the user experience with SAP Fiori

SAP has often faced criticism from business users for its less-than-intuitive interfaces. With SAP Fiori, applications can now deliver a much-improved user experience – on both desktops and mobile devices. 

Fiori apps are visually appealing, functionally intuitive, and can be tailored to specific roles. Users also benefit from a central cockpit where they can manage their own applications. Centralized access to all apps, combined with the integration of various UI technologies, allows the functional scope to be continuously expanded while ensuring a consistent and seamless user experience. 

Integration of geographic information systems

Many companies operate numerous IT systems across different departments and areas of responsibility. This often results in data silos, which limit transparency and hinder cross-departmental collaboration. 

The SAP Geographical Enablement Framework (GEF) addresses this challenge by enabling the integration of geographic information systems (GIS). Specifically developed for asset management, the SAP Geographical Framework for S/4HANA makes it possible to visualize geo-enabled assets, as well as integrate them with business processes and relevant analyses. 

Keyword search across the entire ERP suite

SAP Enterprise Search for HANA (SAP ESH) enables fast and intuitive keyword searches across SAP S/4HANA. It displays all objects containing the searched term, whether they are technical assets, maintenance orders, purchase orders, documents, or customer master data. 

This capability allows information to be located far more quickly, supporting faster decision-making. It is especially valuable in areas such as fault analysis, remote services, and master data management. 

New opportunities in asset management with SAP S/4HANA

SAP S/4HANA facilitates targeted optimization across multiple aspects of asset management while also opening the door to entirely new scenarios. Plus, standalone SAP technologies relevant to asset management can be seamlessly integrated, particularly applications from the SAP Intelligent Asset Management Suite. 

One example is the Asset Business Network (SAP BNAC), which facilitates the exchange and sharing of asset data to improve operations, streamline maintenance, and support the ongoing development of machines and equipment. Central to this is the concept of digital twins – virtual representations of physical assets. 

With SAP Predictive Asset Insights (SAP PAI), companies can continuously monitor the condition of their assets and predict future performance, enabling proactive maintenance and minimizing downtime. 

Despite these innovations, one thing remains unchanged – a hallmark of SAP for decades: With S/4HANA, all departments and business areas remain fully integrated. Asset management continues to be directly connected to commercial processes, materials management, human resources, and production – just to name a few. 

This close integration ensures seamless data exchange across the entire enterprise and even beyond

S/4HANA: Paving the way for future-proof asset management

SAP S/4HANA unlocks vast potential for asset management: from integrating innovative technologies and leveraging real-time data to fully embedding asset management into company-wide processes. Organizations that strategically take advantage of this potential can boost efficiency, enhance transparency, and ensure long-term resilience, building a strong foundation for their digital transformation journey.