Why S/4HANA is The Ultimate ‘Digital Core’ for Industry-Leading Enterprises

In an ever-evolving business landscape, the key to staying ahead is the ability to innovate and streamline operations seamlessly. This involves embracing advanced technologies, maintaining lean and responsive processes, and adapting swiftly to changes in both customer expectations and supply chain dynamics. Data analytics has already set enterprises apart from their competition, and similar advancements are being seen with the integration of artificial intelligence (AI). As new technologies continue to disrupt the status quo, maintaining focus and consistency while enabling operational transformation is crucial. Businesses require a digital core that not only protects essential structures but also seamlessly integrates with upcoming technological evolutions. SAP S/4HANA stands out as the definitive solution for these needs.

The Evolution of S/4HANA

S/4HANA has evolved from a long lineage of SAP’s ERP innovations, stretching over 50 years. Each iteration has increasingly met the complex demands of growing businesses—expanding operations, scaling teams, and enhancing connectivity across global supply chains to better serve customers. S/4HANA converges all essential system elements, optimizing core capabilities and adapting smoothly to future phases of business evolution, thus allowing even customer-specific developments to be integrated in a non-intrusive manner.

Intuitively Customizable ERP Packaging

S/4HANA’s architecture is thoughtfully designed to provide foundational ERP capabilities while offering extensive customization options to meet specific business requirements. This framework is structured into three critical layers:

Digital Core

This is the solid foundation of S/4HANA and all related applications. As well as being the main engine powering everything else and acting as ‘the system of record’, it houses Enterprise Resource Planning (ERP) applications, essential for managing a company’s resources efficiently.

Line of Business Solutions

This layer adds specialized functionalities known as Line of Business (LoB) Solutions around the Digital Core, enhancing the system’s versatility and embedding specific solutions for each line of business.

Line of Business (LoB) Cloud Solutions

Here, modules for specific business functions like buy, supply, design, maintain, make, service, finance or people, among others, are found. Designed for cloud efficiency, these building blocks ensure maximum scalability and easy access, enhancing flexibility across business operations and providing end-to-end solutions.

The SAP Business Technology Platform (BTP): Enhancing S/4HANA’s Capabilities / Extensibility, Integration, Automation, Analytics, and AI

The SAP Business Technology Platform (BTP) is pivotal in extending the capabilities of S/4HANA, emphasizing extensibility, integration, automation, analytics, and artificial intelligence. BTP serves as a comprehensive suite that allows businesses to build, extend, and enhance applications beyond the standard capabilities of S/4HANA. Here’s how BTP elevates the S/4HANA environment:

Extensibility

BTP enables businesses to create and integrate custom applications that address unique business processes, extending the core functionalities of S/4HANA without disrupting the existing system.

Integration

With BTP, enterprises can seamlessly connect S/4HANA with other SAP and third-party applications, enhancing data flow and process efficiency across diverse business landscapes.

Automation

Leveraging AI and robotic process automation capabilities within BTP, enterprises can automate routine tasks, enhance decision-making, and streamline operations, thereby reducing errors and increasing efficiency.

Analytics and AI

BTP integrates powerful analytics and AI tools that allow businesses to gain deeper insights into their data, predict future trends, and make informed decisions that drive business growth.

Flexible Deployment Models

SAP S/4HANA stands as a paragon of adaptability, offering flexible deployment models that cater to the unique needs of every business. Recognizing that enterprises vary in size, scope, and strategy, SAP has designed S/4HANA to be versatile in its implementation. There are several deployment models available, each offering its own set of advantages, ensuring that enterprises can tailor their system architecture to align perfectly with their operational needs and long-term vision.

On-Premise Deployment

For organizations that prioritize full control over their ERP systems, on-premise deployment of S/4HANA provides a customizable and secure environment. This model facilitates a high degree of tailoring, allowing businesses to maintain their data within their own data centers and manage their solutions in-house.

Cloud Deployment

The cloud model offers agility, scalability, and rapid innovation, enabling businesses to stay agile and responsive to market changes. With S/4HANA Cloud, enterprises benefit from a lower total cost of ownership, automatic updates, and the ability to scale resources on-demand. The cloud deployment can be further categorized into public and private options:

Public Cloud

SAP S/4HANA Cloud in the public domain is ideal for businesses looking for a quick start and value realization. It provides a standardized yet powerful set of capabilities with regular updates and enhancements.

Private Cloud

Enterprises seeking a middle ground between the on-premise and public cloud models may opt for the private cloud. SAP’s private cloud deployment, often facilitated by the RISE with SAP offering, combines the customization and control of on-premise solutions with the flexibility and scalability of cloud services.

Hybrid Deployment

For businesses that require a blend of both worlds, a hybrid model serves as an excellent choice. It allows the integration of on-premise solutions with cloud services, providing a balance between control and agility. This model supports a stepwise transition to the cloud, enabling businesses to migrate at their own pace while still leveraging the benefits of cloud capabilities.

The selection of a deployment model is a strategic decision that can shape an enterprise’s digital transformation journey. SAP S/4HANA’s deployment flexibility ensures that whether an enterprise is taking its first steps toward digitalization or looking to optimize its existing digital landscape, there is a solution that fits. This flexibility is a testament to SAP’s understanding that the path to becoming an intelligent enterprise is not one-size-fits-all; it is as distinct as the businesses embarking on the journey.

Unmatched ERP Capabilities and Advantages

Designed with intent, S/4HANA provides a unique combination of benefits that enterprises can leverage for efficient, effective, and continually improving operations. Its modular nature allows for specific customizations while still offering access to pre-configured workflows and platforms, facilitating ease of use and adaptability.

The technological power of S/4HANA, refined to meet modern business needs and modulated for custom selection according to individual business needs, offers a digital core that is stable yet adaptable. It holds a lot of potential for businesses dedicated to elevating operational processes to foster sustainable positive business outcomes. However, the range and depth of choice can be overwhelming to enterprises with minimal technical know-how, experience in ERPs and familiarity with S/4HANA.

As trusted SAP partners who have guided numerous clients on their journey to building a strong digital core, we have the intricate product knowledge and strategic expertise needed to successfully navigate S/4HANA migrations and optimizations. The latest PENTEO report positions us as among the top ten companies in S/4HANA migrations and implementations and we have been awarded the qualification of REX (SAP Recognized Expertise) of S/4HANA.

Partner with NTT DATA to maximize this opportunity for greater agility, efficiency and competitive advantage by having an expert by your side during the entire transformation process: before, during, and after.