SAP S/4 HANA:
SAP S/4 HANA Cloud
SAP S/4 HANA Cloud is perfect for businesses that don’t want to manage their own system. It’s provided by SAP as a ready-to-use ERP system through the SaaS model. The company must carefully analyze their objectives and requirements to determine the best form of SAP S/4 HANA Cloud for long-term benefits.
SAP S/4 HANA Cloud at a glance
S/4 HANA Cloud has distinct advantages over traditional on-premises or private cloud installations with its focus on operations, billing and standards. As a SaaS provider, SAP manages operation, maintenance and updating. Solution costs are billed monthly based on factors such as number of users, reserved computing power and data or storage space volume. Customers must adapt to SAP’s standard processes for optimal simplicity.
Before choosing SAP S/4 HANA Cloud, it is important to examine how well the enterprise can meet SAP’s requirements and the resulting impact on productivity. Consider the benefits of standardization and the potential for optimization. Determine how many unique selling points are involved in each business process and whether they can be customized. Answering these questions is crucial before deciding on a cloud solution.
What are the benefits of SAP S/4 HANA cloud?
SAP S/4 HANA Cloud has a range of advantages compared with traditional on-premises operations:
Reduced TCO
SAP S/4 HANA Cloud eliminates the need for companies to have their own data centre for running their ERP system, which can be costly when upgrading to S/4 HANA.
Scalability
Cloud solutions allow for flexible adaptation of ERP capabilities to meet changing demands. This makes it easy to quickly scale up or down as needed in terms of user numbers and computing power.
Standardisation
S/4 HANA Cloud promotes standardizing business processes, which is essential in prioritizing important tasks. By applying standards, companies can avoid uncontrolled system growth that can lead to high costs for operations and maintenance.
Breaking down silos
Using S/4 HANA Cloud, companies can centralize their ERP system, improving data consistency, integration, and collaboration. This is particularly beneficial for those that previously operated multiple SAP systems in parallel.
Strategic impetus for IT
Moving to S/4 HANA Cloud allows SAP experts to focus on vital IT projects and develop innovative revenue models, freeing up valuable resources and mental energy.
S/4 HANA Cloud Essential Edition, Extended Edition or S/4 HANA Private Cloud Edition?
SAP has three versions of S/4HANA Cloud, each intended for different levels of standardisation. Choosing the most appropriate version depends on a business’s unique situation and goals.
S/4 HANA Cloud Essential Edition
The Essential Edition offers standardized business processes with limited customizability. All users share the same software version regardless of their role. This ensures a manageable ERP system without excessive expenses.
S/4 HANA Private Cloud Edition
The Private Cloud Edition offers all S/4 HANA features while remaining flexible and expandable. It blends cloud benefits with on-premises strengths. Additionally, it includes sector and industry processes for 25 sectors and industries.
S/4 HANA Cloud Extended Edition
The Extended Edition of S/4 HANA Cloud is a private cloud version that allows for more customer customization. It supports role-based configuration and integration with a company’s own manufacturing processes. A mandatory yearly release update is required.
How long does a S/4 HANA Cloud migration take?
Moving to S/4 HANA Cloud takes time due to technical complexities. To plan realistically, start by asking two key questions.
How complex are the processes within my organisation?
Integrating multiple process touchpoints and partners, including EDI connections and SAP solutions like SAP DMC in production, into the central S/4 HANA Cloud is essential for improving efficiency, reducing costs, and achieving a transparent overall view across all organizational activities, thereby enabling businesses to gain a competitive edge in the market.
How ready am I to adapt my processes to SAP standards?
Customising and adapting S/4 HANA Cloud requires significant time and resources, but it’s important to keep the end goal in mind. Sticking to SAP’s “scope items” (best practices) may seem like a restriction, but it actually streamlines the conversion process and ensures a smoother transition to the new system.
A successful journey in the cloud requires a positive mindset and guidance from experts. By recognizing the cloud's potential for better workflows and business models and seeking support from experienced SAP and cloud professionals, you can avoid issues and achieve your goals efficiently.
How does the S/4 HANA Cloud migration proceed?
The success of migrating an existing ERP system to SAP S/4 HANA hinges on various parameters, contingent upon the starting point. Defining this initial situation forms a critical aspect of the strategic phase, a prerequisite preceding implementation.
Transitioning to S/4 HANA Cloud, particularly the Essential Edition, typically entails a greenfield approach, establishing systems and processes from the ground up, with minimal opportunity for reusing existing elements due to the stringent standards required by S/4 HANA Cloud.
Both implementation models, greenfield and brownfield, are viable for migrations to the Extended Edition or S/4 HANA Private Cloud. However, the greenfield approach allows customers to thoroughly evaluate their systems and processes. Even with greater flexibility, prioritizing process standardization remains paramount during the cloud migration journey.