Why migrate to S/4HANA?

StrategyDriven Tactical Execution Article |S/4HANA|Why migrate to S/4HANA?Operating a business is not always an easy task. It requires you to stay updated on various trends to remain competitive and significant to your customers. Usually, IT complexity within companies will stall S/4HANAmigration projects. Nevertheless, many companies will find it helpful to shift S/4HANA. This article will provide you with the benefits your company will enjoy after migrating to S/4HANA.

Reduced Ownership Costs

S/4HANA facilitates functions like master data governance and Global Available to promise. From an infrastructural perspective, the reduced boxes to manage translates to lowered maintenance costs. Again, S/4HANA allows a shared infrastructure, thus enabling businesses to eliminate bare metal that needs replacement every five years.

Easy Business Model Updates

Typically, the SAP ECC was developed for business models that have not been forced to change as fast as today’s models. For instance, today’s models are changing to keep up with various influences such as customer expectations, hybrid workforces, supply chain disruptions, and advanced technologies. However, following the increased opportunities to pivot and apply data to new business models, organizations can allow easier model change through SA S/4HANA. Besides, SAP S/4HANA is developed from the bottom up and facilitates how organizations do business now.

Simplifies the Introduction of Acquisitions into the ERP Environment

In the consumer packaged goods sector, businesses add complementary goods to their offerings and expand into new markets by getting smaller brands. Before SAP S/4HANA was developed, companies were required to combine these acquisitions into their core ECC systems. Unfortunately, these activities needed many resources and time to accomplish. The good news is that with S/4HANA, companies do not have to fold acquisitions into their core; instead, they can store them in the SAP public cloud.

Faster and Better Analytical Insights

S/4HANA elevates its performance exponentially, especially running through the HANA in-memory databases. It incorporates an intelligent data design that decreases aggregate data and table redundancy, thus making it exceptionally efficient. Also, the core ERP system provides faster insights and analytics instead of keeping data in the warehouse and waiting for it to load each time you need it. Also, you will enjoy speed insights from the analytics capabilities and business transactions in the same system.

Enhances Forecasting Accuracy

Although they are evolving slowly, embedded machine and AI learning applications are steadily changing in S/4HANA, facilitating improved forecasting, predictive outcomes, and modeling. For instance, a retailer can utilize a Universal Data Element Framework to forecast demand based on historical data. This allows them to pull in third-party aspects like the weather. Therefore, a retailer can develop a model that can predict the demand for a specific product in a particular area.

Facilitates Proactive Assets Management

AI, machine learning, and in-memory databases allow businesses to combine industrial sensors with S/4HANA. This facilitates predictive analysis, especially in receiving alerts if a machine malfunctions and monitoring assets on the manufacturing shop floor. Additionally, the sensors work full-time, constantly monitoring movement, temperature, and vibration.

Also, guided by the baseline measurements, businesses can predict unexpected shutdowns or when a particular machine requires maintenance.

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