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SAP S/4HANA & S/4HANA Cloud: Which is Right for Your Business?

By November 27, 2019No Comments

In our last blog, we discussed how enterprise resource planning (ERP) software solutions help enterprise-level companies bring all aspects of their business into a single tool.

As businesses grow, departments begin operating with an increased level of independence. If having access to the latest company data is a vital component for success, then it’s time to invest in an ERP system. These solutions use data-driven intelligence to make user’s lives easier.

SAP offers two ERP solutions: S/4HANA and S/4HANA Cloud. So which solution is best for your business? Here’s what you need to know when picking an SAP ERP solution.

What Does an ERP System Do?

ERPs provide a variety of benefits beyond real-time data analysis. Below is a quick breakdown of several advantages:

  • Customizable Solutions – No matter your business, ERPs can be modified to meet specific company standards and industry requirements.
  • Do More with Less – When all departments are running from the same software solution, it’s easier to scale and requires fewer resources to do the job.
  • Increased Productivity – When companies operate from the same programs, they can save time by automating core business processes.

What is S/4HANA

S/4HANA is SAP’s intelligent, integrated ERP system. The solution is based on the SAP HANA database, which allows businesses to analyze data in real time. With the use of artificial intelligence, S/4HANA enables users to make smarter decisions with embedded analytics and an easy to use conversational interface. Plus, the system can address industry-specific requirements with best practices for 26 different verticals.

How Can S/4HANA Help Your Business

Whether with the on-premises or cloud solution, SAP S/4HANA helps companies see effective results. According to SAP, some enterprise-level businesses were able to see up to a 30 percent lower cost of ownership after switching to SAP’s ERP. Other companies were able to lower inventory costs and reduce billing process time by running more efficiently.

What’s the Difference Between S/4HANA and S/4HANA Cloud?

While both S/4HANA and S/4HANA Cloud have many of the same benefits, the primary differences are implementation and management. S/4HANA is the on-premises version of the ERP. The business manages all aspects of the solution, such as the SAP HANA database, applications, servers, operating system, virtualization and network.

S/4HANA Cloud is the Software as a Service version of S/4HANA. This means that SAP manages the solution with no need for an internal IT department to oversee the hardware and databases.

The on-premises version gives users greater control of the solution, from upgrades to customization, while the cloud version is simpler to install and use but offers fewer customization options.

How Dickinson + Associates Can Help

The benefits of S/4HANA and S/4HANA Cloud are great, but you don’t have to decide which solution is best for you on your own. Let the experts at Dickinson + Associates be your trusted advisor. As an SAP Gold Partner with over two decades of experience, our team of experts can determine which solution best fits your needs. Contact us today to begin the process of becoming an Intelligent Enterprise.

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