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What S/4 can really do

The digital transformation is changing the role of the ERP system in the company. The S/4 Hana application suite, which is to form the core of digital business models, shows what the ERP of the future could look like. A critical inventory illustrates the advantages and limitations.
Damien Schirrer, Orbis
September 1, 2016
[shutterstock.com:528653644, ra2studio]
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This text has been automatically translated from German to English.

Shear DanielThe digital transformation poses enormous challenges for companies of all sizes and from all industries. The complexity of processes and value chains is increasing, while at the same time the use of Internet of Things (IoT) technologies in Industry 4.0 scenarios is generating huge volumes of data (Big Data).

Simplification

The requirements associated with digital transformation can no longer be satisfactorily managed with a "classic" ERP system such as SAP ERP.

With S/4, SAP has now launched an application suite that combines the advantages of the in-memory platform SAP Hana in terms of data processing, analysis and real-time simulation and the benefits of the intuitive user interfaces of SAP Fiori.

It can be installed on premise or used as an individual system in a managed cloud or as a standardized edition in the public cloud, as well as in the form of a hybrid model.

True to the motto "Run Simple," S/4 enables a smooth transition to the digitized world with the help of digital and simplified business processes. The streamlined data model - redundant data layers, aggregates and indices have been eliminated - reduces the amount of data to be processed by a factor of ten on average, and the IT infrastructure has also been streamlined.

A major contribution to this is that PLM, SCM, CRM, SRM and BI functionality or the global availability check (Global ATP) from SAP APO are brought back into the ERP core.

In the case of SAP APO, this eliminates the need to install a separate system and thus redundant data storage or duplication of data between ERP and APO.

Process-oriented

Unlike the modular SAP ERP application, S/4 is consistently process-oriented and thus has a much simpler architecture. The tasks and data of individual business areas such as sales, finance or logistics are bundled in the S/4 suite - namely in S/4 Sales, S/4 Finance (previously SAP Simple Finance) or S/4 Supply Chain - so that completely new possibilities open up for the end user.

In S/4 Finance, for example, he can now perform a soft close of the income statement in great detail at any time. All financial data is stored centrally in a repository and processed almost in real time at the line item level.Infra 1609

This removes the separation between controlling and accounting, and means greater transparency. Thus, every incident that is posted in accounting now appears immediately in controlling and vice versa.

Complex MRP runs that take up to a day in batch mode can be simulated ad hoc in S/4 Supply Chain. This also allows them to be run completely several times a day. This benefits production processes in particular, as decisions regarding the use of materials, machines and personnel can now be made on the basis of real-time data.

Other SAP solutions - whether on premise or in the cloud - can be seamlessly integrated into the application packages that form the "digital core" of the new suite, ultimately creating completely digitized end-to-end processes.

If, for example, S/4 Sales is linked with the customer management solution SAP Cloud for Customer, an end-to-end customer engagement concept can be implemented - online and offline and on any device.

Externally, the run-simple principle manifests itself in the SAP Fiori apps. The apps are precisely tailored to the respective user group and, depending on the role and authorization, bring all relevant data to the business user on the desktop, smartphone or tablet.

Through the SAP Fiori Launchpad, he can access both the transactional and analytical apps assigned to him, as well as factsheets and SAP Smart Business Apps.

The SAP Smart Business Apps clearly combine important operational and strategic real-time key figures for specific areas such as demand and sales planning or project management in one cockpit. In this way, the material planner knows at any time how many uncovered orders, top-priority shortages, or delayed orders there currently are.

And the project manager keeps an eye on all cases of cost variance, missing parts, overdue milestones or WBS elements. The fact that the KPIs can be analyzed down to the smallest detail via drill-down enables those responsible to identify deviations or problems at an early stage and to take countermeasures immediately.

As an alternative to Fiori, in certain cases it is possible to create a user-friendly, personalized web interface for transactions executed in an SAP GUI and Abap custom developments using the Screen Personas add-on via drag-and-drop.

In turn, the Orbis Multi-Process Suite (MPS), an Abap-based, secure and stable application from Orbis, is ideally suited for use in production and intralogistics.

Orbis MPS automatically integrates real-time data from sensors, actuators as well as barcodes and RFID tags, as well as the processes in production and intralogistics, into SAP software and visualizes them according to the push principle in a role-based and clear manner on interfaces suitable for industrial use.

Since the application can be used on the desktop as well as mobile via smartphone or tablet, business users have up-to-date information at their fingertips at all times - even on the go, both online and offline. In addition, Orbis MPS offers the option of combining various SAP Fiori apps in a single user interface.

Companies considering a switch to S/4 should not do so without the support of an experienced partner with cross-module consulting and process expertise as well as comprehensive technology know-how in the SAP environment. He can competently advise the customer on the choice of the right user interfaces (SAP Fiori, SAP Screen Personas, Orbis MPS), the appropriate operating model (on premise, cloud, hybrid) and determine the precise sizing of the SAP Hana database (RAM, discs, CPU).

To ensure that the implementation proceeds on time and on budget, the partner should use an agile implementation method such as SAP Activate.

The road to S/4

If an existing SAP customer is already using SAP ERP 6.0 with Unicode, the first step is to upgrade to the latest Enhancement Package (EHP), in this case to EHP 7. Only then is the changeover to the Hana database carried out and finally the import of the SAP S/4 Hana innovations.

The conversion of the individual SAP installations can either take place in one fell swoop or step by step. If the customer is already using SAP Business Suite powered by SAP Hana, only the "old" code needs to be replaced with new code during the changeover.

For new customers, only the complete new implementation of S/4 is an option, but it is also recommended for existing customers with a multi-ERP environment. The latter should first introduce the suite in a branch that does not yet use SAP software before rolling it out to all other locations.

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Damien Schirrer, Orbis

Damien Schirrer is Managing Director France Orbis.


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Working on the SAP basis is crucial for successful S/4 conversion. 

This gives the Competence Center strategic importance for existing SAP customers. Regardless of the S/4 Hana operating model, topics such as Automation, Monitoring, Security, Application Lifecycle Management and Data Management the basis for S/4 operations.

For the second time, E3 magazine is organizing a summit for the SAP community in Salzburg to provide comprehensive information on all aspects of S/4 Hana groundwork.

Venue

More information will follow shortly.

Event date

Wednesday, May 21, and
Thursday, May 22, 2025

Early Bird Ticket

Available until Friday, January 24, 2025
EUR 390 excl. VAT

Regular ticket

EUR 590 excl. VAT

Venue

Hotel Hilton Heidelberg
Kurfürstenanlage 1
D-69115 Heidelberg

Event date

Wednesday, March 5, and
Thursday, March 6, 2025

Tickets

Regular ticket
EUR 590 excl. VAT
Early Bird Ticket

Available until December 24, 2024

EUR 390 excl. VAT
The event is organized by the E3 magazine of the publishing house B4Bmedia.net AG. The presentations will be accompanied by an exhibition of selected SAP partners. The ticket price includes attendance at all presentations of the Steampunk and BTP Summit 2025, a visit to the exhibition area, participation in the evening event and catering during the official program. The lecture program and the list of exhibitors and sponsors (SAP partners) will be published on this website in due course.