What is SAP S/4HANA?

SAP S/4HANA, SAP’s fourth and latest generation of ERP, is the technological foundation and digital core of the intelligent enterprise. The Business Suite revolutionizes all business processes—from asset management to finance to sales. Based on the SAP HANA in-memory database, the solution enables real-time data access and analysis. The simple data model, the lean, adaptable architecture, the intuitive, customizable SAP Fiori interface, and an ever-expanding range of AI and machine learning capabilities make it easier for companies to quickly adapt to the changing demands of a digitally connected business world.

The ERP system is available both on-premises for operation on a company’s own servers and as Software as a Service (SaaS) in the cloud. For the latter, there are two variants: the highly standardized SAP Cloud ERP (formerly SAP S/4HANA Public Cloud) and SAP Cloud ERP Private (formerly S/4HANA Private Cloud), which offers more extensive customization and extension options.

Thanks to their specific advantages, the various SaaS deployment options offer solutions tailored to companies’ individual circumstances, requirements, and priorities.

The transformation to SAP S/4HANA can be carried out using the greenfield or brownfield approach, or through hybrid scenarios. While the greenfield approach involves setting up the system from scratch—which requires a correspondingly high level of effort— all processes are reevaluated and implemented in a largely standardized manner based on best practices, the Brownfield conversion involves a gradual migration of the existing ERP system, beginning with a technical upgrade to SAP S/4HANA. This approach is faster and more cost-effective, whereas the Greenfield approach enables a fresh start with a lean, agile ERP solution and optimized processes. Hybrid transformation scenarios combine elements of both approaches. This includes valantic’s extended Brownfield methodology, which offers the best of both worlds and is winning over more and more companies.

valantic’s annual SAP study shows that companies with older installations tend to favor the Greenfield approach. For newer SAP installations with proven processes and structures, however, customers prefer the faster and less costly Brownfield methodology to complete the implementation quickly and launch optimization projects as needed afterward. The transition from on-premises to the cloud always requires a greenfield transformation.

Regardless of the chosen operating model and transformation approach, one thing is certain: The migration from the existing SAP ERP to SAP S/4HANA is not just another run-of-the-mill IT project, but a fundamental system change. It is certainly not a necessary evil in light of the end of support for older ERP versions. On the contrary: An S/4HANA transformation serves as a value driver for the entire business, both in terms of business processes and at the system and organizational levels.

In addition to modernizing the technical infrastructure and applications, as well as harmonizing and centralizing SAP systems, many users are primarily interested in making greater use of automation opportunities through artificial intelligence, predictive analytics, and related data science technologies to better position themselves against the competition and operate more successfully.

With SAP S/4HANA, companies also realize the following benefits:

• Group-wide, uniform, and effective planning and control capabilities
• a decisive leap forward in technology and digitalization
• sustainable, cross-functional process and system expertise within their organization
• greater appeal as an employer through innovation and state-of-the-art processes
• more available capacity thanks to the automation of time-consuming, non-value-adding activities
• Improved maintainability of the system landscape and reduced support effort through standardized processes and applications

valantic supports companies through all phases of digital transformation with SAP S/4HANA—from strategy development to implementation using our proven project methodology and comprehensive test management, through national and international SAP rollouts, all the way to system operations. We act as an equal partner throughout the entire value chain. We have more than 30 years of consulting and implementation experience, as well as extensive technological and domain expertise. In addition to our services, we offer preconfigured SAP S/4HANA industry packages and add-ons for specific tasks not covered by the SAP standard.