Differences between SAP S4 HANA and other ERPs:

Here, we will focus on what exactly is S A P - S four Hana and how it is different from the other E R Ps or
other products that S A P was developing until now, mainly focusing on what is the difference between A
SAP-ECC and SAP S4 Hana.

We know that SAP is a software, which helps organizations in integrating their business processes. So if
the organization is using different, different software, still now, in order to manage different departments,
using SAP, all the different departments of the organizations can use a single software to cater to the
requirements or to manage their business processes in one single software.

Now SAP is developing this ERP Software for a long and the first popular version was SAP R3 2005. As they
came up with SAP-ECC, there were some improvements made on SAP R3, for example, the features like
new GL accounting,

the features like real-time integration and a few more activities were introduced in SAP-ECC and which
was launched in 2005. Here, New GL means, New General Ledger Accounting business function to
optimize the FI-GL (New) application component for the processes of parallel accounting as well as
planning and reporting on the basis of profit centres.

Now In 2015, Sap came up with SAP S4 Hana. And the reason for coming up with a new product was there
were some challenges the customers were facing in SAP-ECC.

Now, we will try to highlight whatever the challenges and due to which SAP came up with SAP S4 Hana.

1. The First challenge was due to the increase in the number of transactions, Customers were finding
slowness in their ERP system. So whenever they were doing some transactions, whenever they were
generating the reports, there was a slowness in the system. That was the reason the users were not able
to generate the reports on time. And that is where exactly SAP came up with a new database called SAP
Hana.

SAP Hana provides speed which means it is now faster to perform your day-to-day transactions and your
reports. So, number one benefit of SAP S 4 Hana is because it is using SAP Hana database. The transactions
and reporting can be performed faster.

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2. The second benefit of SAP S4 Hana is SAP Fiori, S A P Fiori is a new user interface which will allow
doing transactions in a simpler manner.

In E C C, we were using a S A P - G U I with S A P – G U I, We used to remember the transaction codes to

perform the transactions. And those screens were not very easy to use for the new employees who are
joining the organization. But with S A P – Fiori, It becomes easier even for a newcomer to understand how
Fury works and to perform the day-to-day transactions. FIORI is a browser-based and easy to generate
even analytics from FIORI. On top of that, Fiori also allows you to do transactions from any device. For
example, you can do the transactions from your tabs, and mobile devices. It does not necessarily need to
be done through computers or laptops.

3. The third benefit of SAP S4 Hana is the simplified business processes.

When I say simplified business processes, it means there are some improvements made in the functional
topics within S A P - S four Hana. For example, there are some improvements done within finance,
there is some improvement done within materials management. There are some improvements done
within sales and distribution and there are many improvements which are happening in the advanced
topics or advanced modules within S A P - S four Hana. With these improvements, it is now possible for
organizations to save time during their day-to-day and maintained activities. For example, the
reconciliation process which used to take 5 to 10 days at every month and now can be performed within
one or two days. There are some other reconciliation activities which were taking a lot of time earlier.
Now, there are many reconciliation activities which are not required because of the real-time integration
between different modules.

Here, Reconciliation accounts are the vehicle that links sub-ledger accounts, like accounts payable,
accounts receivable, and fixed asset accounts back to the general ledger. Every sub-ledger account has to
link back to a reconciliation account.

4. And the fourth benefit of S A P - S 4 Hana is its implementation methodology. So for a new customer
who is implementing S A P - S four Hana for the first time, if you compare the timeline, which was, which

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used to take for S A P - E C C implementation, S A P - S four Hana implementations would be implemented
faster. And that is because of the new methodology called S A P activated with S A P activate.

There are a lot of improvements in the way how you implement the ERP systems.

5. The fifth benefit of S A P - S four, Hana is S A P - S four Hana comes in different editions. So you can go
for S A P on-premise edition or you can go for SAP on cloud edition.

S A P on-premises edition is similar to S A P - E C C in which you need to buy the hardware as a customer,
you need to buy the hardware and the software will be provided by S A P. In the case of S A P - S

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four Hana cloud, you don't need to purchase any hardware, you can just go for the subscription basis and
you will be started using the S A P- S four Hana cloud system, which includes the based business
practices. So these were some of the improvements between S A P - E C C and S A P - S four Hana.