SAP ERP vs SAP S/4HANA
Founded in 1972, SAP is a multinational enterprise based in Germany. It has over 240 million cloud subscribers and over €27 billion in global sales.
According to user comments, SAP ERP is commended for its extensive functionality, effective supply chain management, and first-rate customer service. With so many companies preparing to switch to SAP S/4HANA, IT managers and SAP architects may better grasp what to anticipate from the software and the advantages of moving to S/4HANA by knowing the distinctions and similarities between SAP products.
Let’s explore, how SAP s/4 HANA different from SAP ERP with FUSION INFOTECH!
Overview of SAP ERP
The goal of SAP ERP (Enterprise Resource Planning) is to manage and integrate essential company activities through a comprehensive software package. Since its initial release in the 1990s, SAP ERP has been an integral component for businesses looking to increase productivity and simplify their operations. A unified and real-time view of corporate data is made possible by its many modules, which include finance, human resources, manufacturing, supply chain, and customer relationship management.
SAP ERP has had a big impact on Bangladesh’s manufacturing, pharmaceutical, and textile industries, helping businesses become more productive and make better decisions. The system’s capacity to automate procedures and centralise data lowers errors and boosts operational effectiveness. Smaller organisations may find SAP ERP’s complexity and expense costly, despite its advantages. However, given its strong points, it is a vital tool for big businesses hoping to expand and survive in Bangladesh’s competitive market.
What is SAP S/4HANA?
Built on the in-memory HANA database, SAP S/4HANA is an advanced ERP package intended for continuous data processing and analytics. It improves usability and productivity by providing a user-friendly SAP Fiori interface and a streamlined data model.
Additionally, SAP S/4HANA helps companies to make data-driven decisions more quickly, which is essential for keeping a competitive edge. Its use is expanding in Bangladesh, particularly in sectors like manufacturing and banking where operational agility and real-time insights are highly prized.
Features of traditional SAP ERP
Money Handling
- Entire modules for controlling, asset management, financial accounting, and treasury management.
- Enables adherence to different accounting standards and reliable financial reporting.
Management of Human Resources
- Includes payroll, talent management, time management, and personnel administration.
- Aids in increasing worker productivity and streamlining HR procedures.
Distribution and Sales
- Oversees shipping, billing, invoicing, and sales orders.
- Guarantees effective order fulfillment and improves customer service.
Material Administration
- Oversees material valuation, inventory control, and procurement.
- Guarantees ideal stock levels and seamless purchasing procedures.
Manufacturing Scheduling
- Makes shop floor control, material requirements planning, and production scheduling easier.
- Decreases downtime and increases production efficiency.
Management of Quality
- Manages quality throughout the manufacturing process.
- Adherence to quality standards and minimises flaws.
Plant Upkeep
- Supervises the planning, carrying out, and recording of maintenance.
- Lowers maintenance costs and improves machine reliability.
Project Framework
- Facilitates the planning, budgeting, carrying out, and monitoring of projects.
- Guarantees that projects are finished on schedule and budget.
Relationship Management for Customers (CRM)
- Manages service management, sales force automation, and customer interactions.
- Increases the loyalty and happiness of customers.
Intelligence for Business (BI)
- Offers resources for reporting, data analysis, and business planning.
- Enables thorough data insights to support well-informed decision-making.
Is SAP HANA an ERP system?
No, SAP HANA isn’t an ERP system. It’s an in-memory database platform designed to process high volumes of data in real-time. While it powers SAP S/4HANA, which is an ERP suite, HANA itself focuses on data management and analytics. So, think of SAP HANA as the powerful engine that drives the advanced capabilities of SAP’s ERP solutions, but it isn’t an ERP system on its own.
What are the key characteristics of SAP S-4HANA compared to SAP ERP?
Database Stored in Memory
SAP S/4HANA facilitates real-time analytics and simplifies data processing by utilising the HANA in-memory database.
Compared to SAP ERP’s previous traditional disk-based databases, this represents a major advance.
Model of Simplified Data
A more straightforward data model in SAP S/4HANA reduces information duplication and boosts productivity.
This results in faster reporting and transactions, which is essential for Bangladeshi firms who want to be agile.
Improved User Experience
SAP S/4HANA’s SAP Fiori interface provides a cutting-edge, user-friendly interface.
Bangladeshi users will find it easier to adjust to this than the typical SAP ERP, which has a more expensive and unintuitive graphical user interface.
Immediate Analytical Results
Real-time analytics capabilities offered by SAP S/4HANA enable businesses to make more rapid, data-driven decisions.
Furthermore, this functionality is very helpful for Bangladesh’s dynamic marketplaces, where prompt responsiveness is essential.
Combined Procedures
SAP S/4HANA enhances overall operational efficiency by seamlessly integrating many business operations.
Process delays are decreased and workflows are streamlined for Bangladeshi businesses thanks to this integration.
Cloud Interoperability
Cloud deployment options are included in SAP S/4HANA, providing scalability and flexibility.
Traditional SAP ERP solutions are generally installed on-premises, which can be more expensive and less adaptable for Bangladeshi companies that are expanding.
Cutting Edge Technologies
AI, ML, and IoT are examples of cutting-edge technologies that are integrated into SAP S/4HANA.
These developments give Bangladeshi companies access to state-of-the-art resources they need to remain inventive and competitive.
Streamlined Personalisation
Compared to SAP ERP, SAP S/4HANA offers easier customisation and feature expansion.
This feature makes it possible for Bangladeshi companies to effectively modify the system to meet their own requirements.
Enhanced Output
User productivity is increased by SAP S/4HANA’s performance enhancements, which include quicker data processing and retrieval.
This increase in performance is crucial for Bangladeshi businesses looking to streamline their processes.
Future-Ready System
SAP S/4HANA’s architecture supports future business needs and technology improvements.
Because of this future-proofing, Bangladeshi businesses may develop and expand without having to update their ERP systems constantly.
Challenges and Considerations of S/4 HANA and SAP ERP
There are some obstacles and factors to consider when implementing SAP ERP or switching to SAP S/4HANA, especially for companies in Bangladesh.
Because SAP ERP is so complex, it has problems. We are aware that its many modules require notable training, which adds to the challenging nature of implementation. Smaller Bangladeshi firms may find it prohibitively expensive to implement and operate SAP ERP. Another difficulty with customization is that it takes time and money to modify the software to meet particular requirements.
Furthermore, the conventional SAP ERP GUI is not user-friendly, which has an impact on user efficiency and adoption. Concerns about delayed processing and duplicate data can affect decision-making. Flexibility might be limited by integration challenges with third-party apps and more recent technologies. Finally, the lengthy deployment period postpones the advantages’ actualization.
Even though SAP S/4HANA is sophisticated, it has its own set of difficulties. Because of the complexity of the project, a precise plan of action is needed when migrating from SAP ERP. The move will come at a significant expense, which will include consulting services, hardware, and software. The long learning process of the new system makes employee training difficult. Extensive testing is necessary to ensure system compatibility with current infrastructure. Though less complicated than SAP ERP, customization still necessitates careful preparation. Cloud deployment raises concerns about data security and compliance. System stability requires constant supervision to perform regular updates. Moreover, there may not be as many qualified specialists in Bangladesh, which raises expenses and delays hiring.
Businesses in Bangladesh must be aware of these obstacles to properly plan their SAP deployments or transitions, guaranteeing seamless integration and optimal advantages.
