S/4 HANA Use Cases: How are Early Adopters making their Case?

Operating in real time is no longer an aspiration – it’s a necessity.  Organizations today need to perform in an always-on, digitally-connected, and Big Data-driven world.  To do that successfully and survive, you need all the information available to you right now – there is no time for batch processing and long-running programs.  You need transactional and analytical data ready in real-time, and in-memory.

That is why you need S/4 HANA.

S/4 HANA is SAP’s bold and game-changing ERP initiative. HANA, the in-memory computing platform drives the digital generation of ERP. HANA combines the essential elements to drive a re-architected enterprise that adapts to digital transformation. Consider the impact of improved technical performance, simpler data model and enhanced user experience; the result is the re-imagined business.

At SAPPHIRE, many use cases and breakthroughs were shared on how S/4 has helped at the core of digital transformation. We want to share some of the pivotal drivers for transforming the CFO’s office:

  • Migrate to Daily Soft Closes
  • One Source of the Truth
  • Performance Improvements driving changes in Reporting

Companies that are built to last must adapt and change. S/4 HANA is the digital core and catalyst that facilitates change across industries and lines of business. For the business that survives the global digital transformation, the core applications must enable the ability to transform the business.

The time it takes to close the books has always been a benchmark for Finance and IT. One SAP customer, an emerging life sciences company, reduced their month-end financial close activities from 4 days to 4 hours. How did they do it, by focusing on value-added activities.

The accountants would spend countless hours at month-end reconciling transactions and spreadsheets, building supporting schedules, perform top-side entries and wait for the refresh of the numbers to show the new financial position.  Now, they can reconcile account balances and adjust balances without waiting for nightly batch updates.

Another objective driving early adoption is “one version of the truth”. For many years getting all stakeholders to agree on the numbers was near impossible. With the simplified data model, all lines of business are looking at a single accounting table; the Universal Journal provides the financial results by all operating dimensions.

The Universal Journal contains accounts, dimensions and values for multiple currencies and valuations across businesses, profit centers and regions. Because the Universal Journal is in-memory, adjusting entries and new updates from sub-ledgers and other sources are reflected immediately in the KPI’s and reports; no more waiting for batch runs and refreshes.

Early adopters of S/4 HANA are experiencing a reduction in reports. This phenomenon is due to how the real-time data comes alive. With live data, and the enhanced user experience, Fiori, users KPI’s drive the reporting at all levels of the organization. Also, reporting dimensions are changed on the fly. View your results by region, profit center or business. The in-memory data instantly flip to the desired view that you want to analyze. The static workbooks and reports that comprise so much of today’s enterprise reporting deck will take a back seat to the insights, exceptions, and alerts that will drive action.

Performance improvements are driving the rapid adoption. In Core Finance, formerly FICO, there is an approximate 90% reduction in the data footprint. SAP has simplified the data structure and eliminated redundant data in aggregates and indices. For experienced SAP users, only two tables support the accounting and operational functions, BKPF and ACDOCA, formerly known as BSEG.  Processing times are improved by as much as 1800 times through the simpler data structure, smart data compression, and data management capabilities.

The Fiori UI/UX is SAP’s latest innovation in role-based user experience. This Anywhere Workplace app powers user on mobile devices i.e. smartphone and tablet, and back at the office. Decision-makers set user based alerts to inform them of processes or results that are exceptions to the norm. For heavy transactions users, Fiori reduces transaction process steps i.e. keystrokes, by as much as 80% in some areas by simplifying the screen layout.

Improved technical performance, simpler data model, and enhanced user experience is the formula for the successful company in the digital economy.

Are you interested in determining Use Cases that support your migration to S/4 HANA? To find out how Titan’s Advisory Services can help your Business Case, contact Warren Norris, warren@titanconsulting.net, 972.679.5183, or contact your Titan Consulting Director. You can see additional information on our Advisory Services page at www.titanconsulting.net.