Overview of SAP S/4HANA

What is SAP S/4HANA?

SAP S/4HANA is an Enterprise Resource Planning (ERP) software suite developed by SAP SE to accommodate the complex business processes of modern-day enterprises. It behaves like the central nervous system to facilitate all business decisions.

It enables companies to manage all day-to-day business processes such as sales orders, customer payments, procurement processes, vendor payments, product planning and manufacturing workflows, service requests, and delivery operations.

It is designed for optimal performance and offers an intuitive user experience with seamless integration with technologies like AI, Machine learning, the Internet of Things (IoT), and big data. With flexible deployment options like on-premises, cloud, or hybrid models, it is suitable for a wide range of industries.

It integrates different business processes, such as Finance, HR, logistics, and Sales, to provide a centralized data repository for all operations. It connects with other third-party solutions and supports the previous generation SAP business suite for legacy services and data support.

SAP HANA, the revolutionary in-memory Database, is the foundation of SAP S/4HANA. It provides real-time processing and analytics, and significantly improved performance compared to previous SAP products.

What does SAP S/4HANA stand for?

SAP S/4HANA full form is “SAP Business Suite 4 SAP HANA.”

• “SAP” stands for Systems, Applications and Products in Data Processing.
• “S/4” stands for “Suite 4” meaning it’s the fourth generation of SAP’s business suite.
• “HANA” means High-Performance Analytic Appliance.

History and Evolution

Launch and Early Adoption

SAP HANA, an in-built memory database platform, was first introduced in 2010. It allowed existing products like SAP ERP and Business Suite to leverage their faster performance and eventually laid the foundation for S/4HANA.

SAP S/4HANA was officially launched on 2 February 2015 at the New York Stock Exchange. It offers both on-premises and cloud editions. The on-premises edition was available on the same day, and the cloud edition went live at SAPPHIRE NOW on 6 May 2015.

S/4HANA was an immediate success, with 370 customers adopting it by April 2015. By October 2015, about 1300 customers were onboard. The number skyrocketed to almost 5400 customers by the end of 2016, and by mid-2018, customers reached 8900.

Key Milestones

The SAP S/4HANA release was considered the most significant ERP update in over two decades and required around 400 million lines of code rewriting. This enabled new architecture, capabilities, and integration support for different implementation models, especially cloud implementation, a new concept at that time, and is now infused into our daily lives.

S/4HANA’s Innovations

SAP S/4HANA is built on the SAP HANA in-memory database platform, which allows data to be stored in RAM to provide significantly faster processing and analytics than traditional disc-based databases.

In-memory databases allow decision makers to gain instant insights into key performance indicators, operational data, and trends for proactive and data-driven decision making. Rather than waiting for reports after batch processing on data collected from different modules at the end of the day, live data processing and statistics are at the disposal of decision makers.

In previous versions, Online transaction processing (OLTP) was used for day-to-day operations, and Online Analytical processing (OLAP) was used for complex data processing, reporting, and analytics, which were stored in separate systems. S/4HANA merged these functionalities into one platform, embedding analytical capabilities directly within the transactional processes for real-time processing, reporting, and decision-making without replicating data from different systems and reconciliations.

S/4HANA integrates advanced technologies like machine learning to automate repetitive tasks, enable predictive analytics, and enhance decision-making. For example, it can automate invoice matching, predict sales demand, classify inventory, and track movement.

Timeline of Evolution

SAP Simple Finance was released in 2014 at the SAPPHIRE NOW conference and was the first step towards S/4HANA. Built on SAP HANA, it introduced a simplified data model for real-time financial processing and reporting.

Later in 2016, advanced logistics capabilities, such as Extended Warehouse Management (EWM) and Production Planning/Detailed Scheduling (PP-DS), were embedded directly into S/4HANA. In previous implementations, these were standalone systems. EWM provides an advanced warehouse management system, and PP-DS optimizes manufacturing processes.

In 2017, the Transportation Management (TM) module was incorporated in SAP S/4HANA to enhance integrated planning, execution, and tracking of the transportation process, increasing logistics visibility and efficiency. With the 1809 release of S/4HANA 2018, Predictive Accounting was introduced, which enabled businesses to forecast financial outcomes, simulate potential scenarios based on current data patterns, and make proactive decisions.

SAP HCM has been available for S/4HANA in both on-premises and cloud versions since 2022; however, SAP SuccessFactors is widely used for Human resource solutions. It offers a modern user experience, better configurations for business-specific needs, and integration with S/4HANA backend services.

S4 HANA SAP release cycles address different industries’ requirements and requests. For example, the 1610 release introduced solutions specifically for the oil and gas industries, the 1909 release emphasized discrete industries’ pre-configured solutions, and the 2021 release cycles focused on financial and public services.

Shift in Release Cycle

Since the release of S/4HANA in 2015, SAP SE has followed a yearly release cycle for on-premises versions; however, after 2023, a two-year release cycle is being followed to allow businesses to adapt, implement, and stabilize each upgrade.

Editions and Deployment Options

Deployment Models

SAP S/4HANA offers different deployment models with distinct and overlapping functionalities, having limited complete control over the underlying infrastructure.

On-premises

This implementation involves installing and managing SAP S4 HANA systems on organizations’ servers and infrastructure, providing complete control over the system, underlying hardware, and data management. It offers maximum control, customizations, and data security, but requires in-house IT resources and infrastructure management.

Cloud

It can be divided into two sub-categories, public and private cloud implementations.

• Public cloud: a shared multi-tenant environment managed by SAP or other service providers, offering excellent scalability, and lower upfront costs, with the provider managing the infrastructure and technical aspects.
• Private cloud: A dedicated single tenant hosted by SAP or other service providers, providing more control and customization options than public cloud, with scalability and flexibility benefits and lower upfront infrastructure cost.
• Hybrid: This combination of on-premises and cloud deployments allows organizations to keep running legacy and new versions on premises for total control over data for security and compliance, while leveraging cloud-based functionalities of S4/HANA for other functions.

SAP S/4HANA Cloud Editions

SAP S/4HANA Cloud Editions have unique naming conventions compared to their on-premises counterparts, providing different functionality and implementation.

SAP S/4HANA Cloud, formerly known as Essentials Edition (ES) and Multi-Tenant Edition, is a highly standardized and ready-to-run ERP solution. It is a Software-as-a-Service (Saas), where different tenants tied to organizations operate on shared infrastructure. Ideal for businesses looking for quick, cost-effective, and scalable solutions.

SAP S/4HANA Cloud Extended Edition, previously known as Single-Tenant Edition, is a private cloud system provided by SAP dedicated to one customer. It offers more flexibility and customization than the public cloud.

SAP S/4HANA Cloud Private Edition is a solution that can be hosted on any cloud service provider or private datacenter. It offers the highest customizations in the cloud category and is suited for organizations with complex regulatory requirements and a massive investment in legacy systems.

On-Premises Characteristics

S/4HANA provides similar coverage and functionality to the SAP Business Suite, including modules like Finance (FI), Controlling (CO), Materials Management (MM), and Sales and Distribution (SD). It offers tailored functionalities for complex, industry-specific processes.

In this implementation, companies have complete control over their data, hardware, and upgrading schedules. It also supports customization options for country-specific regulatory requirements, language, and business processes.

Cloud Characteristics

SAP has a clear roadmap of future products, and S/4HANA cloud is the pivot product in this transition to its cloud-first strategy. Cloud features and functionalities are a priority, along with faster delivery of updates for patching issues and feature requests. Functionality covers all business aspects, such as finance, procurement, sales and distribution, manufacturing, plant maintenance, project systems, and product lifecycle management. As a cloud-native solution, it offers ease of scalability and flexibility to adapt to the changing needs of the business.

Implementation is typically faster than the on-premises solution. Its feature updates and security patching are automatic and accessible from anywhere, enabling remote work and collaboration.

Key Integrations

S/4HANA integrates with other SAP cloud solutions, which provide specialized functionalities to specific business needs to extend its core capabilities.

Solution	Description
SAP SuccessFactors	It is a Human Capital Management solution focusing on Talent management, core HR processes, payroll, and employee experience. Its integration with SAP HANA S4 enables the flow of data between HR and Finance, workforce planning and cost allocation, performance management, and tracking operational efficiency in Human Capital Management.
SAP Ariba	It is a specialized procurement suite, and its integration with S/4HANA enhances visibility and control of direct or indirect spending, supplier management, efficient procurement, improved supply chain management, and compliance.
SAP Hybris	Now known as SAP Commerce Cloud, it focuses on Customer Relationship Management (CRM) and e-commerce. Its integration with S/4HANA’s sales and distribution processes provides a unified view of customer data, real-time inventory correlation with order processing, personalized marketing, and enhanced customer experience.
SAP Fieldglass	It is a specialized solution for managing the external workforce, and its integration with S/4HANA Finance and HR modules provides better visibility and control of workforce spending, improved compliance, and cost control.
SAP Concur	It is a travel and expense management system. Connecting it with S/4HANA automates the expense reporting and reimbursement process, providing real-time visibility into expense details for better cost control and compliance with internal policies and external regulations.

Release Cycle and Versions

Release Frequency

S/4HANA on-premises followed the yearly release cycle, which means customers received a major update every year, providing flexibility to plan upgrade schedules and adapt to new features. After the release 2023, SAP changed this model to a two-year cycle. Major releases will be available in two years with seven-year maintenance support.

S/4HANA cloud follows a twice-yearly release cycle, with two major releases around February and August each year. It delivers new features quickly in smaller and manageable packages managed by SAP.

Version Coding

Cloud versions of S/4HANA follow “YYMM”, year and month version coding. For example, “Release version 1709” was released in September 2017.

Before 2020, S/4HANA on-premises also followed the “YYMM” versioning convention; however, after the 2020 release, it is following the “YYYY” versioning convention, with each release version translating the release year, e.g., 2020 means released in 2020.

List of Releases

SAP S/4HANA on-premises major release cycles are as follows:

Version	Description
1511	Released in November 2015, it was the first major release.
1610	Released in October 2016. Major logistics module improvements were added.
1709	Released in September 2017, it introduced advanced analytics with machine learning.
1809	Released in September 2018, focused on intelligent ERP capabilities.
1909	Released in September 2019, more advancements in Machine learning capabilities.
2020	Released in October 2020, switched to YYYY versioning format, and improved treasury functions.
2021	Released in October 2021, improvements in industry-oriented functionalities.
2022	Released in October 2022, focused on cloud extensibility.
2023	Released in October 2023, the enhanced artificial intelligence and automation features were introduced.

• SAP S/4HANA cloud has a more frequent update cycle, with two annual releases and sometimes more than two. The following is the list of cloud releases:
• Year 2017: 1705, 1709
• Year 2018: 1802, 1805, 1808, 1811
• Year 2019: 1902, 1905, 1908, 1911
• Year 2020: 2002, 2005, 2008, 2011
• Year 2021: 2102, 2105, 2108, 2111
• Year 2022: 2202, 2208
• Year 2023: 2302, 2308
• Year: 2402, 2408

Implementation Methodologies

Overview of Approaches

There are three major approaches to SAP implementation, each tailored to an organization’s specific needs. Below is an overview of each approach.

• New implementation (Greenfield): It’s like a fresh start with a clean installation of S/4HANA from scratch, ideal for organizations transitioning from non-SAP ERP systems or setting up standardized business processes without historical data.
• System Conversion (Brownfield): Organizations migrating from existing SAP ERP systems like SAP ECC to SAP S/4HANA adopt this approach as they must retain historical data and configurations. It focuses more on technical details related to the upgrade rather than on setting up processes from scratch, and it can be implemented relatively faster than a Greenfield implementation.
• Selective Data Transition (Landscape Transformation): This is more like a selective migration of data and processes to SAP S/4HANA, and it provides the flexibility to move specific business areas in phases with minimum disruption to ongoing operations.

Greenfield Implementation

Greenfield implementation helps organizations migrate from non-SAP systems, e.g., Oracle ERP, Microsoft Dynamics, or in-house ERPs, and implement new SAP systems, design Business processes, define data migration strategies, and define management across organizations with new SAP ERP systems.

This approach is adopted for newly formed companies or companies wanting to start fresh, even if they have previously used any SAP solution. After implementing HANA S4 SAP systems, the initial data load process is executed with only migrating necessary transactional data from legacy systems, if any, which eliminates technical debt from old systems and provides streamlined processes with a modern, user-friendly interface.

S/4HANA standardized configuration and integrations can speed up the implementation and ensure compliance with industry standards. However, there are challenges associated with this implementation. Change management, training, and customization require time, often with the help of external consultants. Careful planning and execution are necessary for integration with external entities such as banking systems, suppliers, customers, and distribution networks.

Brownfield Implementation

Brownfield implementation is suitable for organizations already using SAP solutions, such as SAP ECC, and wanting to upgrade to S/4HANA. It involves the technical migration of existing systems to S/4HANA by upgrading the database. Customizations and configurations are modified according to the new system, and historical data is retained.

Several assessments are done before migration, and one of the key assessments is database compatibility. Suppose the legacy system is not using the SAP HANA database. In that case, the first step will be upgrading the database to SAP HANA with specialized tools like Software Update Manager (SUM) with Database Migration Option (DMO). Brownfield implementation requires extensive testing, as technical debt may carry over to new systems. However, downtime in business operations is minimal and costs less than a new implementation.

Selective Data Transition

Large organizations have different SAP ERP solutions implemented across various regions, and a selective data transition approach helps them consolidate all systems into a single global SAP S/4HANA system. Only data and specific configurations were migrated from legacy systems, with process alignment, providing unified reporting and analytics benefits across the organization.

In contrast to consolidation, this implementation also helps organizations separate different business areas into separate S/4HANA systems for compartmentalization in mergers and business restructuring scenarios.

Organizations can adopt this approach to implement S/4HANA for selective business areas and reuse the legacy SAP ERP solutions process. This strategy balances cost-efficiency and process modernization with gradual adaptation of future technologies. All scenarios require careful planning and execution for data consistency and integration and require specialized tools and expertise, as this implementation is more complex than the other two approaches.

Product Lifecycle and Maintenance

Release Strategies

Cloud editions receive major releases twice a year, ensuring that cloud customers receive frequent bug fixes and enhancements at a faster pace due to SAP’s infrastructure control.

On-premises edition used to receive one major release per year, and after 2023, one major release every two years. In between major releases, minor packages like Feature Pack Stacks (FPS) for new features and enhancements, and Service Pack Stacks (SPS) for bug fixes and security patches.

Changes in Product Strategy

SAP has changed its product release strategy for the on-premises edition. After 2023, the S/4HANA on-premises edition will follow a two-year release cycle with extended maintenance support of 7 years instead of 5 years. This will allow customers to schedule maintenance, upgrades, and long-term maintenance support easily.

Distinguishing Features of S/4HANA

Real-time Processing: Facilitates transactions and analysis of business data in real time.

SAP S/4HANA is built on SAP’s revolutionary in-memory database SAP HANA, which combines Online Transaction Processing (OLTP) and Online Analytical Processing (OLAP) into Hybrid Transactional/Analytical Processing (HTAP). This provides real-time transactional data analysis without separate database replication and reconciliation delays. With embedded analytics at a module level, end users can generate and analyze reports from different in-built dashboards for up-to-date information and timely actions.

Simplified Data Model: Streamlines the ERP system for improved understanding, use, and agility.

Simplified Data structure of S/4HANA’s in-memory database reduces redundant database indexing tables and aggregates, which results in faster data access, improved data consistency, and simplified application development. A smaller data footprint makes maintaining and upgrading the database easier with flexible options for scalable implementation.

Advanced Technologies: Integration with AI, ML, IoT, and advanced analytics.

SAP S/4HANA integrates with advanced technologies such as Artificial Intelligence, Machine learning, the Internet of Things, and advanced analytics. AI and Machine learning help automate repetitive tasks such as invoice matching, predictive accounting, and procurement recommendations. Internet of Things devices connect with business processes to monitor and maintain equipment in real time. Advanced analytics provide predictive forecasts and perspective analytics for the best course of action. These cutting-edge technologies future-proof business transition from the digital era to the AI revolution.

Fiori UX: Modern, tile-based user interface for ease of use across devices.

SAP Fiori is a modern user interface designed for ease of use and consistency across devices like laptops, tablets, and mobile devices. Role-based access control provides end users with applications and data relevant to their role. Applications are shown as tiles with simplified navigation and personalization options for improved productivity. An intuitive design enhances usability and requires fewer training efforts. Modern UX design provides a standardized user experience and is highly customizable according to the organization’s needs, serving as the foundation for futuristic innovations such as AI interfaces.

Differences from SAP ECC

SAP S4/HANA is specifically designed to run on the SAP HANA database to leverage its in-memory capabilities, faster processing, and real-time analytics. In contrast, SAP ECC can run on various databases, including SAP HANA.

S/4HANA can be deployed in cloud-only, on-premises, or hybrid configurations, whereas SAP ECC is primarily deployed on-premises with some integration capabilities to connect with separate SAP cloud solutions.

SAP Fiori is a modern, role-based, responsive UI for S/4HANA, making the interface much more intuitive and user-friendly than SAP ECC’s older GUI interface.

S4/HANA natively integrates with Advanced analytics, robotic process automation (RPA), machine learning, and Artificial Intelligence to enable smarter and faster business processes.

S/4HANA Lines of Business (LOBs)

Evolution of LOBs: Starting with Simple Finance and expanding into logistics and other areas.

SAP S/4HANA organizes its solutions around different lines of business (LOBs) to offer specific business features and processes according to the needs of various industries.

Initially, S/4HANA was focused on finance, with the introduction of “Simple Finance,” and then gradually included other key areas such as logistics, sales, and human resources. This journey involved restructuring these areas to take advantage of SAP HANA database capabilities and introducing new functionalities with an enhanced user experience.

Key LOBs

LOB	Description
Finance	Handles the financial aspects of organizations and includes modules such as Financial Accounting (FI) for the general ledger, accounts receivable, and payable, controlling (CO) for cost center accounting and profitability processes, Treasury Management for cash flow, liquidity planning, and financial risk management, and Financial Planning and Analysis for budgeting and forecasting.
Logistics	Covers planning, execution, and monitoring of supply chain activities to ensure smooth operations across supply chain business areas. Offers sourcing and procurement processes like requisition processes, purchase orders management, invoice verification, and supplier performance management.
StandardizedManufacturing	Processes for production planning and execution, material requirements planning, shop floor control, quality management, and production analytics.
Supply Chain	Focuses on demand forecasting, logistics execution, inventory management, warehouse, and transportation management. Asset management handles maintenance of plants, equipment, and facilities, as well as maintenance history tracking and predictive maintenance with IoT analytics.
Sales	Provides functionalities to cover the complete sales process from order taking to cash received, including order management, shipping and delivery, billing, and customer relationship. Order Management processes involve sales order creation, pricing, quotation management, and order fulfillment. Shipping and delivery management handles delivery processing, transportation planning, and shipping goods. Billing processes involve creating invoices and managing credit, debit, and revenue reports.
Customer Relationship Management (CRM)	A dedicated system for customers’ data, like account information, contact management, sales activity, and analytics
R&D/ R&D/Engineering	It provides functionalities like product lifecycle management, processes to handle each step from concept and design to manufacturing and innovation, and tools for project management, resource allocation, and quality management for regulatory compliance.
Human Resources	SAP SuccessFactors is a strategic cloud HR solution. However, S/4HANA is evolving to add more HR functionalities natively, such as employee administration, time management, and basic personnel development.

Industry Segments

SAP S/4HANA is designed to serve various industries, offering tailored functionalities for each industry’s requirements.

Industry	Description
Consumer	S/4HANA helps consumer industries to manage their complex demand patterns and enhance supply chain operations for fast-moving goods. Customer engagement processes with personalized experience provide efficient marketing and sales processes with e-commerce channels, brand management, and consumer analytics.
Discrete Manufacturing	S/4HANA provides features like production planning, project-based manufacturing solutions, quality management, and supply chain management for industries that assemble finished products or manufacture discrete items like automobiles, electronics, or machinery.
Energy and Natural Resources	This industry category benefits from S/4HANA features like asset management, production planning, compliance solutions with regulatory bodies, inventory management, and shipment processes.
Financial Services	Financial institutions can leverage S/4HANA real-time data processing and advanced analytics with predictive risk management. Standardized financial reporting of S4HANA provides better compliance with regulatory bodies and enhances customer experience.
Public services	Public sectors such as government agencies, healthcare, and educational institutes can utilize S/4HANA integrated processes for budget management, supply chain, tax and revenue management, sourcing, and procurement processes management.
Services industry	Service companies can use S/4HANA features such as project management, resource scheduling, customer relationship management, billing, and field service management.

Benefits and Drawbacks of S/4HANA

Advantages

• Suitable for large organizations with integrated workflows across different departments, S4HANA provides standardized business processes for consistency, compliance, and scalability.
• Provides pre-built industry-specific solutions that address complex industry requirements and reduce the need for extensive customizations.
• Natively integrates with advanced technologies like AI, Machine Learning, Internet of Things, and Robotic Process Automation to provide advanced analytics and automate repetitive tasks.
• With its in-memory database computing, S/4HANA provides instant data access, optimized performance, and real-time analytics for financial reporting, project, and production performance, enabling informed decision-making.
• S/4HANA can be deployed on-premises for total control over data and infrastructure, and can be utilized as a cloud implementation, or a hybrid approach can be used to combine both implementations.
• Ready to be deployed with a lower upfront cost, S/4HANA cloud provides flexible deployment and scalable infrastructure, automatic updates, lower maintenance cost, and seamless integration with other e-commerce applications, making it a leading ERP solution.
• Its predictive modeling and machine learning capabilities enhance supply chain and Sales forecasting for efficient decision-making.
• Provides end-to-end process integration across different departments, ensuring faster and accurate collaboration with transparency.
• SAP Fiori’s modern role-based user interface improves user experience and productivity.
• SAP HANA database simplifies data models, eliminates data redundancies, and provides a central data repository for real-time decision-making.

Disadvantages

• S/4HANA is a complex and comprehensive system for detailed process integration, and it can be overwhelming for small or simple organizations with straightforward processes and limited needs.
• Specialized skills are required to design, deploy, and maintain S4 HANA in SAP, which requires in-house hiring and external consultants to handle areas like ABAP development, Fiori deployment, HANA database administration, and functional configurations.
• The initial cost of software licensing, hardware, and infrastructure for on-premises deployment and implementation efforts is higher. If not carefully planned and executed, there is a risk of project delays, budget overruns, and even failure in implementation.

SAP S/4HANA Embedded Analytics

Features

S/4HANA has built-in analytical capabilities, enabling end users to interact with analytical tools and reports without switching to a different system.

It provides real-time insights by analyzing live business transactions instead of extracting data from different data stores and requiring batch processing for reporting. Embedded analytics in different modules allow operational data analysis for up-to-the-minute insights and faster informed decision making.

Using SAP HANA Core Data Services (CDS), Virtual Data Models (VDMs) are built on top of the HANA database. These VDMs are pre-defined analytical models and reports for common business scenarios. These VDMs significantly increase data access and provide the foundation for real-time customized reporting.

Benefits

Embedded analytics directly operates on the SAP HANA in-memory database, removing the need for a separate data warehouse and the associated overhead of extract, transform, and load (ELT) processes.

These analytical capabilities are built-in S/4HANA features, do not require separate licensing, and save implementation and integration costs.

Migration Considerations

Companies migrating to SAP S/4HANA, whether from a legacy SAP system or non-SAP ERP solutions, must consider key points before entering the design and implementation phase.

Deployment Methods

• Cloud Deployment: In this deployment, SAP is responsible for the S/4HANA cloud infrastructure, such as servers, storage, and networking. It also provides automated version upgrades and security patching, making this deployment ideal for lower upfront costs, quicker setup, hassle-free maintenance, and a minimum technical workforce to manage critical tasks.
• On-premises Deployment: Companies purchase software licenses and host S/4HANA on their servers, like traditional software deployment. They have complete control of infrastructure, systems, and data. This deployment method best suits organizations with strict compliance policies and provides the best customization and integration options with existing on-premises and cloud systems.
• Hybrid Cloud Deployment: A combination of on-premises and cloud deployment, allowing businesses to keep sensitive data on-premises while extending integration with cloud solutions for scalability and disaster recovery.

Implementation Approaches

• Greenfield Approach: This approach starts with a fresh, clean implementation of SAP S/4HANA, allowing businesses to reevaluate and design business processes. It is suitable for companies looking to modernize their operations and can take more time to implement.
• Brownfield Approach: This approach focuses on upgrading an existing SAP solution, e.g., SAP ECC, to S/4HANA with minimum changes in design and customization. It migrates configurations and transforms data according to the Database requirements of S/4HANA. This approach may inherit technical inefficiencies of the legacy system, but it has lower downtime and quicker deployment than a Greenfield implementation.

Migration Challenges

• Data migration: This is a key challenge in migrating from a legacy version to the latest version of any software; it requires transforming data according to the newest version. First, identify and extract relevant data for the upgrade, then process it before or during the upgrade process to cleanse, transform, and import data into the HANA database.
• Accurate data mapping: This requires a correct understanding of data structures in the legacy system, defining transformation rules to transfer data into the relevant tables of the new database with the proper data type and formats, handling discrepancies, such as missing, inconsistent, or invalid data, and thorough testing for data validation.
• Defined objectives: Migration projects can be delayed or fail without clearly defined goals, which should be measurable and achievable within a specific timeline to reduce downtime and ensure business continuity.

Additional Resources and Definitions

Definitions:

Solution	Description
Central Finance	It is an S/4HANA solution that centralizes and transforms financial data from different SAP and non-SAP systems into a unified financial reporting and analysis view while keeping these systems operational independently. Instead of full deployment or conversion, companies can gain immediate financial insights with this deployment, which can be used for migration in different phases.
Embedded Functionality	These features and capabilities, such as embedded analytics, transportation management, and extended warehouse management (EWM), were available separately in previous SAP versions but are now integrated directly within the core S/4HANA systems.
SAP Activate	It is a standardized SAP S/4HANA implementation and transition methodology that combines best practices, guided configurations, ready-to-run business processes, and tools. It includes phases like Discover, Prepare, Explore, Realize, Deploy, and RUN to accelerate implementation with iterative development and continuous improvement.
SAP Analytics Cloud	SAC is a stand-alone cloud-based analytics solution that can be used with S/4HANA to provide business intelligence, planning, and predictive analysis. It allows end users to create interactive dashboards and reports to visualize data and identify trends for data-driven decision-making.
SAP Best Practices	Based on industry experience, SAP S/4HANA offers pre-configured, standardized, and integrated business processes to accelerate implementation and reduce design inconsistencies. They enhance user experience and reporting and ensure regulatory compliance and operational efficiency.
SAP Business Technology Platform	SAP BTP is a platform-as-a-service that provides various services to integrate data, analytics, and application development to extend and customize SAP S/4HANA. It also supports other SAP and non-SAP systems, with their innovative AI, machine learning, and IoT capabilities.
SAP BW/4HANA	A data warehousing solution that runs on the SAP HANA platform provides advanced analytics and reporting capabilities on data consolidated from various sources, including SAP and non-SAP systems. BW/4HANA is available on both on-premises and cloud deployments, and a flexible architecture allows the collection of large data volumes. After data transformation, data can be queried and analyzed with customized reports.
SAP Customer Experience	SAP CX is a cloud-based solution focused on helping businesses manage their customer relationships and provide tools for marketing, sales, service delivery, and e-commerce processes. It integrates customer data with S/4HANA backend processes like finance and supply chain.

Additional Definitions for SAP S/4HANA

SAP S/4HANA’s revolutionary design and capabilities are the most significant step in SAP ERP history since the release of SAP R/3, ushering SAP ERP into a marvelous age of Artificial Intelligence from the digital era. R/3 revolutionized ERP solutions with its 3-tier architecture, whereas S/4HANA is changing how ERP solutions transform business operations with its in-memory database, cloud deployment options with integrated advanced analytics, support of AI, machine learning, simplified Data model, and modern user experience.

S/4HANA is designed to standardize business processes with its unified platform, consolidating different systems into a single integrated platform that is available anywhere with consistent and accurate information. Helping traditional organizations digitalize their processes with innovative technology and regulatory compliance.