So, if you want to know which SAP solution is best to cater to your business needs, let’s first throw some light on They need to decide whether they want to go for the Business Suite on HANA or SAP S/4 HANA. This resulted in offering a more flexible and faster customer solution to augment their experience.Īs the companies are planning to implement the next generation ERP business suite to reap the benefits of digital transformation, they have to make an important decision when they are moving from SAP ERP Central Component (ECC). One such visible transformation was SAP’s own ability to develop its innovative databases.

To truly use S/4HANA and get the best return on investment, IT leaders of existing SAP ECC customers should understand the functional difference and build the best business use case on why their firm should move to S/4HANA.The release of SAP HANA in 2010 brought a few major changes in the digital landscape. SAP does offer compatibility packs to allow certain SAP ECC functionalities to run on S/4HANA. Overall, there are some pretty significant changes in the S/4HANA functional scope. Examples include Central Finance, SAP Cash Management, and SAP BPC Optimized for S/4HANA. SAP is releasing a number of new functional capabilities which are designed to work with S/4HANA and in-memory computing. SAP Transportation Management and SAP Extended Warehouse management are two standalone solutions which S/4 HANA has brought into its core. Incorporation of stand-alone solutions in S/4HANA core:.Replacement of ECC and on-prem functionality with SAP cloud LoB solutions:Įxamples: Replacement of human capital management with SAP SuccessFactors and supplier relationship management with Ariba.But, this means that the enterprises migrating to S/4 HANA will have processes which are obsolete. SAP has stated that the functionalities in SAP ECC will be probable cases in the SAP S/4HANA roadmap. Some Functionality in ECC has no direct replacement in S/4HANA:.SAP S4 HANA also has Extended Warehouse Management (EWM) functionality embedded into the core-system instead of having a separate SAP SCM system as in SAP ECC. But, SAP S4 HANA uses the new General Ledger Accounting architecture implemented automatically as part of the S4 HANA migration. SAP ECC has two general ledgers (GL) architectures. Elimination of duplicate functionality:.Other functional capabilities such as logistics have also been enhanced this way. This allows for extremely fast profitability analysis. In financials, SAP has changed the physical data architecture so that it can unify the previously separate accounting ledgers into a single physical table called the universal journal.

The architectural changes have enabled new ways of working with data. The introduction of the new in-memory database platform SAP HANA means faster analytics and removal of unnecessary tables. The major changes in SAP S4 HANA compared to SAP ECC ERP are as follows: Introduction of a new database But, it is not a direct replacement for SAP ERP with respect to the functionalities and capabilities. SAP is now offering attractive discounts to nudge this adoption forward. SAP S4 HANA is positioned as the new digital core and a direct evolution from SAP ECC for existing ECC customers.

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