SAP and Oracle are among the highest quality representatives of ERP systems. While Oracle is well established in the North American market, SAP is mostly used in Europe and particularly in German-speaking countries. In other words, once a company reaches a certain size, there is typically no way around an ERP tool. SAP is often the system of choice, as many alternatives do not cover business processes completely or to a high standard.

Taking a closer look
User interface is decisive: SAP uses numerous innovative technologies such as AI to advance its products. For a long time, the SAP GUI was considered outdated, but with the new UX strategy, SAP is at the forefront. It relies on the so-called SAP Fiori GUI, which is based on HTML, can therefore be operated via a browser and is available on all mobile devices. Since S/4HANA, the current ERP business suite, Fiori Technology has been standard.

Everyone goes to the cloud: SAP also relies on the cloud strategy for innovations. This means that SAP’s latest innovations could only be available in the cloud in future. This does not mean that on-premise solutions generally do not undergo further functional development. But on-premise customers, for example, cannot benefit from innovation leaps such as artificial intelligence (AI) and green ledgers. This also applies to larger function modules and extensions based on the Business Technology Platform (BTP). This development is unsettling for many on-premise customers and is viewed critically by the German-speaking SAP user group (DSAG), which acts as a mouthpiece for SAP users.

S/4HANA: evolution or revolution?
Not all SAP customers have yet switched to the latest generation of S/4HANA, but most are expected to do so by 2027. Both customers and SAP itself need a certain stabilization period after the switch from ECC to S/4HANA.

The added value of S/4HANA must be determined individually for each customer. After all, what use is the fact that a certain process is now running even more efficiently if this process is not even in use? SAP provides tools that automatically analyze existing processes and suggest improvements in S/4HANA. emineo conducts such analyses with customers as part of transformation projects or preliminary studies.

S/4HANA is not just a new release from SAP, but a major leap forward. The use of HANA technology changes the system performance and therefore also the system architecture. This creates a functionality in the system that was previously not possible or only possible to a limited extent for performance reasons. One example of this is embedded analytics, whose analytical BI functions are integrated directly into the ERP system in real time. This allows business processes to be managed even more efficiently.

Transformation strategy and future viability
Even if optional extended maintenance is to be possible after 2027 until the end of 2030, it is certainly not advisable to wait. A transformation strategy is needed. Different scenarios are possible. The best approach depends on many factors. How is historical data handled? Is the cloud part of the strategy? How “clean” is the current system or would a clean-up be desirable? As part of an “S4 Transformation Study”, we find the best conversion approach and the right strategy for our customers. The fact is, many questions cannot be answered in general terms.