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10 October 2023

Why switch to ERP SAP S4HANA, conversion process

With over 40 years of existence, ERP (Enterprise Resource Planning) is the backbone of companies. This is why it is a constantly growing market: last year, it almost reached a two-digit growth rate (9.4%) worldwide. SAP has been once again the manufacturer on which most companies rely, with a market share of 6.5%.

In addition, SAP has been recognised as the leading company in two reports issued by IDC MarketScape, which highlight the technological value, innovation and experience in this field.


SAP has been firmly committed to S/4HANA for some time. This product was launched in 2015, although its latest version was released in October 2021, and it is an ERP based on the SAP HANA in-memory database, thus allowing companies to carry out transactions and analyse business data in real time.

The German company has developed this application to help companies in their imperative digital transformation, enabling them to modify existing business processes and models or create new ones. This results in companies becoming more flexible, responsive and resilient to changes in business requirements, customer demands and environmental conditions.

SAP S/4HANA required rethinking the database concept and involved, for the company, rewriting 400 million lines of code. However, thanks to all these changes, the ERP is simpler to understand and use, as well as more agile for developers. SAP sees S/4HANA as an opportunity for businesses to reinvent business models and generate new revenues by taking advantage of the Internet of Things and Big Data by connecting people, devices and business networks.

Also, because S/4HANA does not require batch processing, businesses can simplify their processes and run them in real time. This means that business users can get insight on data from anywhere in real time for planning, execution, prediction and simulation, according to SAP.

In fact, the company always highlights that, with S/4HANA, businesses will be able to use advanced technologies, such as Artificial Intelligence (AI), Machine Learning, IoT (Internet of Things), blockchain and advanced analytics.

Main benefits

Like any ERP, S/4HANA is especially designed for medium- or large-sized companies. Its options for automating many business processes are further maximised the more complex and larger the organisation in which it is installed.

It also allows for improved management and communication in organisations that have several offices or dispersed locations (offices, warehouse, factory, etc.), as well as between various entities under a same company.

This ERP includes modules for the main business processes of companies, such as manufacturing, procurement, supply chain, distribution, retail and financial services.

However, one of the main handicaps of this ERP was that its data model and capabilities were different from other versions, as it had to be developed almost from scratch. The truth is that, at the beginning, there were not many developers and administrators who were able to provide services and experience in this new application. A situation that has been rectified over the years.

In fact, having a system integrator specialising in the development, installation, rollout and maintenance of this ERP is a guarantee of success.

Other reasons

In addition to the above, here are other reasons why companies should change to SAP S4/HANA.

As it is a cloud solution, users will always have the latest versions available, thus ensuring that their business is always digitally up-to-date and that they are using and making the most of the latest technologies and capabilities. That is, becoming a company that is up-to-date with an ERP that is up-to-date.

We must also remember that SAP will no longer support old versions of its ERP in 2027. Therefore, the sooner we complete the migration the better; we will not only be able to do so more calmly, without any last-minute surprises, but we will also be able to enjoy the benefits of this ERP earlier.

In this regard, it should be noted that SAP launches improvements to the application every quarter, incorporating new functions and applications that make its core even smarter. Hence, the sooner we upgrade, the lower the risk of becoming outdated with our current system.

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