S4HANA Enterprise Resource Planner

S4HANA was released by SAP as an ERP system. It is an application that offers various opportunities within the management of company resources. This system is built on a different architecture to the classic relational database of the company. SAP S4HANA is an acronym for Business Suite 4 SAP HANA, meaning that it can only run on SAP HANA and is the fourth version of SAP Business Suite.  SAP HANA is also called HANA Database which runs with data stored in columns that allow faster and real-time analytics, and computing capabilities. In 2015, Bill McDermott called it the first biggest launch in 23 years. Auditarena has an online course that teaches Structured Query Language(SQL) which can be used to interact and manipulate data on HANA Database.  Click here to access it.

S4HANASAP views S4HANA as one of its flagship products that customers will start using as one of the next-generation successors to the SAP Business Suite ERP platform. It is an easy to use system which is used to solve problems and handle larger amounts of data than those that came before it. S4HANA is available in 3 options which are: in the cloud, as an on-site solution, or as a hybrid, which is the combination of the first two. It also uses the SAP Fiori User interface and not the traditional SAP graphical user interface.

Benefits of S4HANA for businesses

One of the major benefits of S4HANA is its in-memory which gives businesses a focused business suite that is powered by real-time data. It serves as an edge to organizations that use data streams. These data streams include asset information or online sales which are coming from sensors.

Another benefit of it to business is that satellite applications do not need instances that will in turn reduce the volume of data. This means that the only database needed will be the SAP HANA and it will grow together alongside applications. There would be no difference between the application and database layer.

SAP introduced the idea of machine learning functions into S4HANA .  They have incorporated prepackaged solutions of machine learning into every release. In the 2018 release of S4HANA Cloud, 12 new scenarios were added to help customers optimize processes. Nine out of which were for machine learning solutions, while 3 were Co-Pilot conversational User interface scenarios.

Other benefits of S4HANA

SAP S4HANA is easy to use, thanks to Fiori 2.0. It provides a modernized design for great innovative user experience. It makes it easy for individuals to access Worklists, list reports, and overview pages. The Fiori User interface can be personalized, highly responsive, and intuitive. This lets users ask questions and access details, irrespective of the device.

Another benefit of using the S4HANA is that it is cost-efficient. You can bring the analytical and transactional capabilities of various systems together in a single location. This ensures better decision making on the part of users.S4HANA

With SAP S4HANA , you are guaranteed of simplifying the management and administration of the IT landscape. One of the features that SAP incorporated in its ECC app structure is simplicity. It makes it possible to consolidate hardware and network resources, and serves as the center for simplifying business process. It does this by harnessing the HANA in-memory database power. S4HANA opens the door for the future evolution of technology. Any organization that wants to be part of future innovation needs to make decisions through which it will benefit in the future.

Moreover, the S4HANA applications have improved speed and performance more than its predecessors. You can plan, execute, and also generate reports that are based on live data. It also provides predictions and lets businesses provide superior and greater customer-centered applications.

Modules of S4HANA

The major component of this system is SAP Finance. The SAP Finance aims to trim down the financial process and allows financial data to be analyzed in real-time. It helps organizations to align financial and non-financial data into a single source of truth, as described by SAP. Some of the modules and functionalities that have been added are as follows:

  1. S4HANA 1511: This module was introduced in late 2015. It introduces a module known as Materials Management and Operations abbreviated as MMO.
  2. S4HANA 1610: This module came about the following year after the S4HANA 1511 was released. It consists of a module for supply chain management, inventory management, environment, health & safety, and extended warehouse management.

According to SAP in 2018, S4HANA HCM was announced. It is an application that is an alternative to SAP Success Factors and which is a human capital management application. It will be available in 2023 and will run alongside S4HANA .

SAP S4HANA Pricing

SAP offers three different pricing plans. The first one is the free plan which lasts for fourteen days. With it, you can use powerful capabilities and intuitive workflows. You can visit their website to begin your free trial. The next one is the SAP S4HANA Cloud custom pricing which is per FUE (full user equivalent) users. It is available through subscription and provides industry-specific capabilities of the business needs and cloud benefits you want. Among what it provides include incredible business agility, rapid innovation, and shorter time-to-value.  The minimum purchase of this plan is 50 FUEs.

Finally, there is the SAP S4HANA custom pricing which is available through traditional licensing. It gives full access and control of your ERP landscape letting you maximize the capacity for specialization. You can deploy it in owned data centers or utilizing infrastructure as a service provider. Whichever one you choose, you can use pre-built practices or enable complex customer business processes.


This is a SAP suite of enterprise applications designed to run on a 3rd-party database. It began as a financial software package which is followed by a module called RM/1.  It was later renamed R/1, and then in 1979, R/2 was released. R/2 integrates enterprise functions such as manufacturing processes, accounting, HR, and supply chain logistics. Then in 1992, after the release of R/3, it became the first client/server package. It did not need mainframes, and supported various databases and operating systems.

SAP named its center ERP product as SAP ERP Central Component (ECC). Now, you can use ERP and ECC

In 2004, SAP renamed its core ERP product as SAP ERP Central Component (ECC). SAP ERP and ECC are now being used interchangeably.


In 2010, SAP HANA was released as an in-built memory. It was primarily designed to accelerate SAP applications and all the business processes it supports. HANA innovations have improved over the years. They have innovations such as simple data structure and in-memory computing. These two have led to real-time visibility, superior use of analytics, and high productivity. Businesses can react to various market conditions, based on current data rather than former reports.  It is the main foundation in running the SAP business suite.

SAP Business Suite

You can run a SAP business suite on HANA when you move the SAP suite from another database. The first step in S4HANA migration is moving to the HANA business suite. You can decide to move to a suite on HANA and then upgrade to an S4HANA later on. When you divide S4HANA migration into different projects, you will be able to generate a quick ROI and minimize risk.


S4HANA was launched in 2015. It provides a UX which is SAP Fiori and other applications with wonderful benefits. It was made after SAP rebuilt its former ERP solution and SAP ECC from the foundation taking advantage of the innovative data models of HANA. One of the major differences between S4HANA and ECC is the database they both use. ECC runs on 3rd party database systems like Oracle, while S4HANA runs on the in-memory database of SAP.

How to choose the right SAP Migration Path

Before migrating to Cloud, SAP S4HANA , or HANA, you will have to compare the benefits and impacts it will have on your business. Transformation can be very complex, so you need to consider how it will impact your business before making your decision on the one to choose.

When you choose a well-managed service provider with experience in SAP transformation, SAP, or various cloud vendors, it can save you and your resources many hours of planning and development. In addition to that, it could minimize cost and eliminate any disruptions to your business.


This post dived into S4HANA and some of the things you need to know about it. S4HANA resolves certain issues such as manually-driven processes, data sprawl, and batch latency on the technical end. This equals to better stability, reduced IT costs, and lower damages from future upgrades of SAP.

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