What is ERP and SAP S/4HANA? A detailed analysis

Enterprise resource planning (ERP) systems are one of the most widely used business systems by companies and organizations as they provide the necessary basis for their smooth operation and management. To improve decision-making processes, ERPs in recent years tend to understand the power of the data they have in their systems and to integrate and leverage artificial intelligence and machine learning technologies.


SAP is a market leader in business resource management systems. The latest ERP it has developed is the SAP S / 4HANA, which is based on a comprehensive database developed by SAP.

In 2015 SAP introduced its new software generation, Business Suite 4 SAP HANA (SAP S / 4HANA) which is completely redesigned. The key to new software is simplicity, which helps businesses get what they need from working with their customers through multiple channels and need a platform to manage their business resources, support strategy and development. The key features of the new software are:

• Simpler model of data management and modelling.

• Immediate on-site analysis of information at the most detailed level, without the need for complex constructions.

• Radically redesigned user experience with access from any computer, mobile or tablet thanks to the new SAP Fiori graphical interface.

Users will also be able to choose to run the new software either in the cloud or in an installation.

SAP S/4 HANA Cloud


SAP S / 4HANA Cloud is an integrated enterprise resource planning (ERP) system with smart technologies, artificial intelligence, machine learning and advanced analytics. It helps companies adopt new business models, effectively manage changes in the business environment, coordinate internal and external resources, and take advantage of the artificial intelligence perspective.

In the new SAP S / 4HANA all these features were further enriched making it one of the most innovative and powerful information systems distinguished by the following features:

➢ New architecture based on a new “in-memory” database structure with simplified data models and integrated analytics.

➢ Simplified data processing by rebuilding tables and using best practices.

➢ Better user experience for users by introducing role-based applications accessible via smartphone, tablet and desktop computers.

➢ Installation options with “On-premise” and “Cloud” versions or a combination of both, thus reaping the benefits of existing supplier relationships cloud.

Modules in SAP S/4HANA

Implementation and installation based on the exact needs of the customers with personalization of solutions and installation of modules of the system (modules). The modules of the system are essentially individual components of the system that each provide functionality for specific business purpose and allow easier adaptation to the specific needs-processes of customers and easier information. SAP S / 4HANA includes multiple modules, the main of which are the following:

▪ Sales and Distribution (SD)

▪ Supply Chain Management (SCM)

▪ Customer Service (CS)

▪ Materials Management (MM)

▪ Supplier Relationship Management (SRM)

▪ Business Performance Management (EPM)

▪ Facility Maintenance (PM)

▪ Product Lifecycle Management (PLM)

▪ Human Capital Management (HCM)

▪ Production planning (PP)

▪ Project Management (PS) (Control (CO)

▪ Investment Management (IM)

▪ Strategic Business Administration (SEM)

▪ Customer Relationship Management (CRM)

SAP S / 4HANA is SaaS

As mentioned earlier, SAP S / 4HANA is available as an on-premises deployment, as a Cloud installation, or a combination of both. Cloud solutions can be either public or private. On-site installations offer a wider range of business functions than the public cloud and more personalization capabilities. Customers with on-site installation not only own the application and installation but can decide when to update the system. However, new features and innovations are only available once a year. The public cloud offers all the innovations and updates every quarter. With this type of installation, customers need to adapt to innovations immediately as they do not have the option to update the system as they do not control the release of new features. This version of the system is also known as Software as a Service (SaaS).



The SAP Business Technology Platform (SAP BTP) brings together smart corporate applications capable of managing databases, analytics, integration and deployment on both cloud and hybrid platforms, including hundreds of pre-built SAP integrations and third-party applications. It is possible to process data with a variety of options from artificial intelligence algorithms and in particular machine learning in order to aggregate, classify data.