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Accelerate Innovation with SAP S/4HANA Cloud Platform

In the context of the digital age, S/4HANA Cloud is a platform that disrupts the realm of enterprise technology through the provision of innovative resolutions that optimize processes, enhance productivity, and foster expansion. Because they offer an unparalleled degree of adaptability and economicalness, cloud-hosted solutions have evolved into essential tools for organizations. Furthermore, SAP provides an extensive range of license models and cloud-based solutions tailored for SAP S/4HANA. These solutions are available for purchase via subscriptions, private or public clouds, or in combination with the RISE with SAP or GROW with SAP programs.

What is S/4HANA Cloud?

SAP S/4HANA Cloud is an enterprise resource planning (ERP) system hosted in the cloud that offers the ability to integrate and accelerate critical business operations, intelligent automation, and real-time analytics. This enables organizations to leverage the potential of data, make informed decisions, and swiftly respond to changing market conditions.

S/4HANA Cloud

SAP S/4HANA Cloud, a cloud-based solution that it developed, includes a number of functionalities that are similar to those in the on-premise version to guarantee the continuous operation of all features. However, it should be noted that the public edition remains suitable for organizations that require substantial degrees of flexibility and uniformity. This variant is particularly well-suited for agile organizations undergoing rapid expansion that have not yet deployed a SAP solution.

Introduction of SAP S/4HANA Cloud

SAP S/4HANA Cloud is an all-encompassing enterprise resource planning (ERP) system that is offered by SAP SE in two different editions: a Private Edition and a Public Edition. Companies have the chance to minimize the costs associated with information technology, become more flexible and agile, deploy innovations more quickly, and benefit from SAP’s best practices that are available. While leasing the software as a service (Saas) and purchasing licenses for the software as a product (as a product) are two different ways to operate SAP S/4HANA, the operating models for these two methods are distinct from one another.

What advantages does SAP S/4HANA Cloud offer?

SAP recognizes five key advantages of cloud computing: accelerated return on investment, enhanced organizational agility, decreased total cost of ownership, heightened governance and compliance, and the availability of intelligent solutions. Gaining access to integrated analysis and forecasting capabilities, improving governance and compliance, increasing automation, implementing industry-standard best practices, integrating technological advancements with current investments from SAP and other vendors, and eliminating the cost of acquiring an internal information technology infrastructure are all ways to achieve these benefits.

An advantage of utilizing SAP S/4HANA Cloud is its ability to decrease costs, enhance adaptability, and expedite the implementation of new ideas. Businesses have the potential to enhance their resilience, agility, and emphasis on emerging innovations. By consistently and automatically getting them, individuals can also take advantage of the latest technological breakthroughs, such as machine learning and predictive analytics.

It is common knowledge that SAP S/4HANA Cloud offers a robust security framework that conforms to industry standards encompassing data privacy, data security, data center best practices, external audits, and user management. The security framework of SAP S/4HANA Cloud comprises a range of measures, including routine testing and verification via certifications and attestations. Physical security, threat and vulnerability management, customer data flow control, network security, a secure product development lifecycle, and advanced IT security architecture are additional measures.

Extensions can be obtained through the SAP Business Technology Platform Extension Suite, which enables side-by-side extensibility; alternative methods include specified application programming interfaces (APIs), in-app extensions (key users), on-stack development, and embedded Steampunk. The user interface is a pure Fiori launchpad, and configuration is performed via Self-Service Configuration User Interfaces (SSCUIs), as opposed to the Implementation Guide (IMG).

Using SAP Best Practices in the cloud allows for automation, acceleration, and simplified processes. Preconfigured standards are available as “scope items” for a wide range of sectors and industries. However, individual adaptations may be less possible with the public cloud variant than with a classic on-premise solution.

In summary, SAP S/4HANA Cloud offers companies numerous benefits, including reduced IT costs, increased flexibility, faster innovation implementation, and access to SAP best practices. By outsourcing ERP software operations to SAP or working with hyperscalers like AWS, Google Cloud, or Microsoft Azure, companies can benefit from these advantages and stay competitive in the market.

SAP S/4HANA Cloud’s Intelligent ERP:

  • Utilizes SAP CoPilot, a conversational digital assistant for user interaction with ERP applications.
  • Utilizes machine learning technology to automate repetitive and error-prone tasks.
  • Includes embedded analytics for predicting the outcomes of actions.
  • Analytics tools are configurable to user needs and can be developed into apps for inventory management or sales quotations.

SAP S/4HANA offers various deployment options.

SAP S/4HANA Cloud is a comprehensive suite of cloud solutions offered by SAP, including three different operating models: SAP S/4HANA Cloud, Private Edition (formerly Single Tenant Edition or Extended Edition), SAP S/4HANA Cloud, Public Edition (formerly Multi-Tenant Edition or Essential Edition, or just “SAP S/4HANA Cloud”), and SAP S/4HANA On-Premise (classic on-premise in your own data center or hosted by hyperscalers such as AWS, Google Cloud, Microsoft Azure, or other data center service providers).

The “public cloud” variant is suitable for new SAP customers and existing customers who want to benefit extensively from preconfigured best practices and completely rebuild their system. The solution is an immediately available software-as-a-service (SaaS) solution, with SAP hosting the software and taking care of operations and maintenance. The scope of the solution includes the core ERP system, specific industries, and 42 countries. Implementation can only be carried out via the greenfield approach.

With PCE, companies have the full functional scope available, identical to on-premise (25 industries, 25 languages, and 43 countries). Extensions are possible more comprehensively with PCE than with SAP S/4HANA Cloud, Public Edition. Code modifications can also be implemented (but are not recommended).

Customizations of SAP S/4HANA Cloud, Public Edition are only possible within certain limits due to standardization. However, private cloud offers more leeway, combining some of the advantages of public cloud with the functions of an on-premise solution.

The “private cloud” variant of SAP S/4HANA has been available in combination with RISE with SAP since the beginning of 2021 (RISE with SAP S/4HANA Cloud, Private Edition). Since then, it has been possible for the first time to switch to the cloud with a system conversion. Companies can obtain licenses via a software subscription (available as RISE with SAP).

SAP S/4hana cloud implementation

SAP S/4HANA Cloud, a single-tenant edition, is designed to foster cloud principles, innovate continuously, and use standard processes wherever possible. The implementation process involves using SAP Best Practices and the SAP Activate methodology to prepare a client that works like the starter system in SAP S/4HANA Cloud. The Fit-to-standard process evaluates business processes and outlines requirements, with experts determining the details.

Rules 3 and 4 focus on defining integrations and extensions, with white-listed APIs preferred for integrations. For key-user extensions and side-by-side extensions, white-listed APIs are preferred. However, not all options are available in SAP S/4HANA Cloud, so it is important to consider alternatives.

Rule 5 is to make choices transparent, considering the customer’s decision on how to implement them. This includes analyzing how many integrations use white-listed APIs and ensuring design documents are reused for future evaluations.

In summary, SAP S/4HANA Cloud is a cloud-like solution that encourages continuous innovation, using standard processes, and transparency in decision-making. By adhering to these rules, SAP S/4HANA Cloud can help businesses adapt to the multi-tenant public cloud environment.

How much does SAP S 4HANA cost?

The cost of SAP S/4HANA Cloud depends on many factors and is determined individually for customers. In principle, SAP offers the SAP S/4HANA Cloud on a subscription basis, with the price based on a full-time user (Full User Equivalent, or “FUE”). The pricing and licensing model, which was presented in 2018, distinguishes between direct access by humans (Human access) and indirect or digital user access (Digital access).

Rise with SAP

The SAP-introduced RISE with SAP streamlines the process of migrating business operations to the cloud. Access to the private cloud, on the other hand, is restricted to the RISE with SAP or GROW with SAP packages; the RISE with SAP package is the only means of accessing the public cloud. SAP Build, SAP Business Technology Platform (Platform Services), and SAP Business Process Intelligence (Discovery Reports) are among the tools and services that comprise the RISE with SAP bundle. This bundled offering comprises an extensive selection of tools and services and is provided under a single contract. The central focuses of each component are the enhanced business processes, the technical transition to SAP S/4HANA, and the expansion of the intelligent enterprise.

The SAP S/4HANA Public Edition, in addition to cloud adoption-specific services, training opportunities, and knowledge resources, are all components of the GROW with SAP platform, which debuted in early 2023. To facilitate a smooth and efficient migration of organizations to cloud solutions, this solution is primarily designed for newly acquired SAP clients in the midmarket segment. The purpose of this is to expedite the expansion of the business, reduce costs, and substitute conventional systems.

Implementation of SAP S/4HANA Cloud

SAP Activate is a structured framework that facilitates the deployment of new SAP projects by providing SAP customers with a variety of configuration tools and specified processes. Utilizing this framework facilitates the implementation of SAP S/4HANA Cloud. This architectural design remains available for utilization throughout a SAP lifecycle, commencing with the deployment of SAP S/4HANA Cloud (public or private) and persisting until the integration of advancements after the system’s live status.

The SAP S/4HANA Public Cloud solution was chosen due to several factors, which encompassed the available time, the cost of ownership, integration, localizations, and compliance components. Gaining success with SAP S/4HANA Public Cloud necessitates a comprehensive understanding of four fundamental components. Identifying the alignment, aligning your team, managing change, and being realistic are these elements.

To comprehend the fit, it is imperative to ascertain the magnitude of the enterprise, identify the essential functionalities, and identify the areas where adaptation is not feasible. Adherence to established business best practices is of utmost importance, and any attempt to introduce complexity into the situation should be avoided. Aligning the corporate information technology department with the management, business proprietors, key users, and end-users comprising the team is an essential undertaking.

Particular emphasis must be placed on end-to-end operations and personnel in order to guarantee that they are cognizant of defined flows, integrations, and prospective new technologies; thus, change management is of the utmost importance. Due to change management throughout the implementation process, organizations are capable of managing the solution independently of information technology needs. Currently, sprint durations can reach two weeks. It is critical to manage change once the system has gone live so that any unresolved issues can be addressed and periodic release updates can be coordinated.

Being realistic in terms of time, effort, and involvement is also essential. Implementing SAP S/4HANA Cloud can be done in weeks, but a smooth, flawless running process takes time to discover, configure, fine-tune, and understand. To fully manage your business, assign resources and budgets for additional optimizations and fine-tuning activities.

SAP S/4HANA on-premises vs S/4HANA Cloud:

  • Both are developed on the SAP HANA in-memory database.
  • S/4HANA Cloud uses a cloud subscription model, offering predictable periodic payments with lower upfront costs.
  • S/4HANA on-premises requires customers to invest in their development, maintenance, and support teams.
  • S/4HANA Cloud upgrades occur automatically every quarter, without customer involvement.
  • S/4HANA Cloud is a limited version of S/4HANA, offering lower cost and faster implementation time but not the full set of features and capabilities.

Conclusion:

In conclusion, SAP S/4HANA Cloud offers a comprehensive solution for businesses looking to transition to the cloud. Its security measures, cost-effectiveness, and comprehensive implementation framework make it an attractive option for companies looking to accelerate their business growth and reduce costs.SAP’s diverse cloud solutions for S/4HANA cater to different business needs, offering flexibility, security, and innovation, ultimately empowering companies to embrace digital transformation.

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