- July 29, 2021
By now, you’re probably familiar with SAP S/4HANA: the inheritor of SAP R/3 and SAP ERP solutions with advanced features designed to aid your digital transformation efforts. SAP S/4 HANA is a modern-day ERP system with embedded AI that can completely revolutionize your business operations. So, how can businesses reduce costs with SAP S/4 HANA?
S/4HANA is a future-ready ERP solution with built-in smart technology, machine swotting, and advanced analysis ability. Some additional benefits of S/4HANA include:
- On-premise public or private cloud as well as hybrid deployment possibilities
- Analytics, embedded artificial intelligence, and quick process automation
- In-memory DB and simple data model structure
- Best-in-class capabilities for a large-size industry
Business Paybacks of S4 HANA for the Enterprise
SAP S/4 HANA is distinguished by its simplistic, highly increased competency, and revolutionary new features. These features include planning, analysis, and stimulation options to bring your ERP systems to the next level. S/4 HANA is capable of transforming transactional systems and data recording capabilities.
When it comes to calculating the ROI of the project, the SAP business suite already has an embedded feature for calculating organizational cases enabled by saving TCO (Total Cost of Ownership) & optimization.
All of these estimates are valid for SAP S/4 HANA as well. Along with all these benefits, the simplification of SAP S/4 HANA adds additional benefits, include:
- The usage of new UI
- Reduction in data volume
- Increase in flexibility
- Higher throughput rate
All these benefits will factor into the business value considerations. As you can see, the financial departments of your organization should benefit from this; profit may take an upward curve as a result of more structured sharing services and quicker financial closing. With all of these amazing financial functions, your business could reduce costs with SAP S/4 HANA.
More Efficient Implementation duration for SAP S/4 HANA
It can be quite difficult to estimate the duration of the migration process, as it differs for each client depending on their environment. Generally, you may be able to estimate a timeline of six months. For 75% of our customers, this has been the case for at least the first step of migration.
For large enterprises, usually look for greenfield projects. Organizations look at this technological transformation as a chance to completely innovate their existing ERP landscape.
The option to keep the IT landscape intact and yet opting for new technological advancement is also possible. This category is called a Brownfield project.
Whether it’s a greenfield or brownfield project, it takes several years to transform completely, however switching to S/4 HANA jump-starts the transformation process.
Savings Beyond the Storage Cost
At times, the cost of managing a large database in an enterprise goes beyond the storage cost. Managing these large volumes of databases consumes a lot of time, manpower and requires quite a lot of downtime.
S/4 HANA has effective and accessible cataloged features that make it possible. These features also support in reducing the cost, risk, and size of DB for deployment, along with intensifying the performance, capability, and recovery.
S/4 HANA migration is a long process and can not be achieved overnight. Moving the SAP S/4 HANA reduces the cost and risk involved in migration. It emphasizes building a simplified yet real-time content management foundation. The feature is further extended to Enterprise Content Management (SAP Extended ECM). The structured and unstructured information can be linked to the S/4 HANA software process. The SAP Information Lifecycle Management feature allows information retention, reduces the cost involved, and efficiently manages large database sizes.