What is SAP Business Suite?
SAP Business Suite is an integrated application which is used to perform start to end business process which can be used in all industries. It consists of Finance, Human Resources, Manufacturing, Procurement, Product Development, Marketing, Sales, Service, Supply Chain Management and IT Management. It is a set of fully integrated applications such as SAP ERP, SAP CRM, SAP SCM and SAP SRM which helps the industry to run their core business smoothly with all their requirements which can be furnished by one single application.
What is SAP ECC?
SAP ECC is an enterprise application which was designed to run third party database like MySQL, Oracle, IBM DB2 and HANA.
The First Financial Software Package was launched in 1973 which was followed by Material Management. They were named as R/1.
Then the second integrated enterprise function was launched in 1979 as R/2 which consists of accounting, manufacturing, supply chain logistics and HR.
They launched their first client server package in 1992 named as R/3 which supported variety of Operating System and databases.
In 2004, SAP renamed its core product to SAP ERP Central Component (ECC).
What is S/4 HANA?
S/4 HANA stands for SAP Business Suite 4 HANA. It was rebuilt so that the Enterprise Resource Planning can leverage the functionality of HANA’s high performance and its data model.
The backend application layer is supported by HANA and the front end uses SAP Fiori because of its user friendly. S/4 HANA has 3-tier architecture where HANA is the database layer and S/4 HANA and SAP Fiori is the application layer.
Key Differentiators between ECC and S/4 HANA:
- In SAP ECC, we have the choice of choosing any one of the databases which can be Oracle, SQL Server or SAP HANA but for S/4 HANA the underlying database can only be SAP HANA.
- HANA is an in-memory database where the data is read from memory and it always resides on the main memory. It is optimized for high performance read operation.
- HANA provides column-based calculation which makes it faster because the operations are performed directly on compressed data using integer indexes.
- In S/4 HANA, OLTP and OLAP capability can be performed in the same system with real time reporting and predictive analytics.
- S/4 HANA’s Finance and Logistics have fewer tables than ECC which makes it faster to implement, as there are no aggregate, history and index tables in S/4 HANA. They are created dynamically with respect to line item table.
Reasons for migrating to S/4 HANA:
- S/4 HANA integrates all the different component like FI, CO, AA into a single table which is known as ACDOCA table. This eliminates the use of several aggregate and index tables into a single table for single source of truth.
- S/4 HANA merges both FI and CO component into one single table which is known as Universal table, and it stores both GL account and cost element. Cost Element stores both primary and secondary GL accounts in FS00 with respect to cost element category. Because of this, we don’t have to run any discrepancy checks and the Period End Closing has also become faster.
- S/4 is very similar to new GL because of its data structure. Customers who uses classic GL are not required to use parallel ledger. Though new GL’s functionality is a pre-requisite of new Asset Accounting.
- In S/4 HANA all customers and vendors are integrated into one single unit as Business Partner. SAP is trying to leverage the concept of Business Partner in other Supply Chain Management applications like APO, EWN, TM. Now these SCM applications can be easily integrated with core of S/4 HANA.
- Material Requirement Planning was run in ECC through batch jobs but in S/4 MRP is being run in real time with HANA.