It’s been nine years since SAP introduced its most significant update—SAP S/4HANA. This release has created a wave of excitement, along with confusion and uncertainty among SAP customers. Transitioning to SAP S/4HANA has proven to be a daunting task for many businesses, largely due to the extensive overhaul it represents for their existing ERP systems. But let’s face it, updating from the old to the new is rarely easy, and SAP S/4HANA is a major shift. 

Despite the challenges, there are plenty of reasons why companies should consider migrating to SAP S/4HANA. In fact, 37% of businesses that made the switch have already seen a boost in revenue. Forrester Research estimates that over a three-year period, companies can see a revenue increase of close to $156 million thanks to S/4HANA. With its simplified data structures, intuitive user interfaces, seamless integration capabilities, and powerful real-time analytics, S/4HANA makes legacy ERP systems feel like a thing of the past. In this article, we’ll dive into the standout SAP S/4HANA Business Benefits and explain why it’s fast becoming the go-to ERP solution for businesses looking to stay ahead. 

What is SAP S/4HANA? 

SAP S/4HANA is the intelligent ERP which uses the complete power of the SAP HANA in-memory database. Since its introduction in 2015, it has undergone numerous developments and is now poised as a true winner in the ERP Market. Therefore, it is vital to understand the Business Benefits which you can leverage to enhance business value through digitization and digital transformation with SAP S/4HANA.  

To start with, it has many advantages (What is the difference between SAP S/4HANA and SAP ECC?). It leverages on the HANA in-memory platform and its columnar data storage mechanism to provide near real-time analytics and computation capabilities. In addition, it provides end-users with active decision support driven by data (external and internal) in real-time. However, most importantly, the biggest advantages that it allows organizations to work seamlessly in a digital economy. This has been a key driving factor for businesses to start considering the business benefits of SAP S/4HANA and make an informed business decision regarding their ERP.  

So, what are the business benefits of SAP S/4HANA?  

Top 6 SAP S/4HANA Business Benefits 

• Simplification 

It introduces a healthy dose of simplification to management and administration of the IT landscape.  It enables centralization of hardware and network resources. Therefore, it is the digital core for business process simplification with the power of the SAP HANA in-memory database.  

With SAP ECC and older systems, enterprises often face issues of multiple batch-run dependencies. However, with SAP S/4HANA, you benefit from the elimination of aggregate tables and reduced processing time. In addition, your systems can easily respond to transactions and queries. All this ensures that you can spend your efforts on strategic growth efforts.  

• Performance 

It offers improved performance. It allows you to plan, execute, and generate reports & analytics based on live data. In addition, you can trigger period closings and provide improved predictions. Moreover, it enables your organization to provide better service for customer-centric applications. The ever-so powerful SAP HANA offers increased contextual awareness and democratized data access.  

• Innovation 

Sets the stage for future innovation. Technology is evolving rapidly. Therefore, merely ‘keeping up’ is no longer sufficient. Enterprises must stay ahead of the digitization curve and make decisions which are future ready.  

Applications built on SAP S/4HANA applications leverage speed, context and data accessibility like never before. In addition, they drive cloud adoption. The cloud platform enables organizations to deliver innovative solutions and widen the capabilities offered by this solution.  

• Cost-Effectiveness 

Adopting SAP S/4HANA (What are the ways to adopt SAP S/4HANA?) is a smart move, as far as cost efficiency is considered. You can bring together all analytical and transactional capabilities of many systems into one location. This enables better, informed decision making which can help your business drive better ROI.  

• Usability 

SAP Fiori provides a modern design for a completely innovative user experience. It enables users to easily access Overview Pages, Work Lists and List Reports. SAP Fiori’s UI is designed to be highly intuitive, personalized, responsive, and simple. Therefore, users can prompt questions and access required details, regardless of the device or mode of deployment. This allows an organization to evolve and drive new revenues, connect with customers at a deeper level, access IoT and Big Data, and most importantly, gain relevant insights into any data, in real-time. Hence, organizations can make decisions faster, a factor which is crucial for enterprises in the current digital age.  

•  Easy transition from on-premise to cloud 

A major benefit which comes along with adopting this solution is that it offers an easy transition to the cloud. Since a move to the cloud can happen at any time in an organization, this is an important benefit for business leaders to consider.  

The Future of Business with SAP S/4HANA 

By 2027, SAP aims to onboard over 100,000 companies to its S/4HANA platform. This ambitious goal demonstrates the platform’s growing influence and the potential it holds for businesses looking to future-proof their operations. The transition not only ensures compliance with future technologies but also prepares organizations for the digital economy. 

Statistics and Real-World Examples of SAP S/4HANA Benefits 

• 20,000+ businesses already use SAP S/4HANA globally.

• Companies have reported a 15-20% decrease in operational costs through the use of SAP S/4HANA’s automated processes.

• SAP S/4HANA enables businesses to process financial transactions up to 50% faster than with legacy ERP systems. 

• The real-time reporting capability allows for decision-making based on live data, providing businesses with a competitive edge. 

Conclusion 

However, the decision to adopt SAP S/4HANA is not a simple move. Just understanding the SAP S/4HANA Business Benefits does not mean you are ready to adopt. It requires deep thought, intensive assessments, and a careful evaluation of the benefits your organization can leverage to stay ahead of the digitization curve and compete in today’s business environment. 

Having completed a variety of SAP and SAP S/4HANA projects across multiple industry verticals, KaarTech can help you with this process. If you want to understand our customer success stories, take up an SAP S/4HANA readiness assessment or need a consultation on the strategic path to digitization, please get in touch with us.

 

 

FAQ’s 

1. What is SAP S/4HANA?

It is an intelligent ERP system built on the SAP HANA in-memory database, designed to simplify operations, enhance performance, and drive digital transformation. 

2. What are the top SAP S/4HANA business benefits?

The top benefits include simplification of processes, improved performance, future innovation, cost-effectiveness, enhanced usability, and seamless transition to the cloud. 

3. How does this solution improve business performance?

It enables real-time data processing, faster financial transactions, and improved reporting, leading to quicker and more informed decision-making. 

4. Why should businesses consider transitioning to SAP S/4HANA?

Businesses should consider migrating to SAP S/4HANA to stay competitive, leverage real-time insights, reduce operational costs, and prepare for the future of digital transformation.