3.2    The SAP S/4HANA Product Family

Customers can choose between multiple editions of the SAP S/4HANA product family. Figure 3.4 shows members of the SAP S/4HANA product family currently available.

In general, we differentiate between the on-premise editions and the cloud editions. However, all members of the SAP S/4HANA product family are based on the same program code. End users will only see differences between the editions due to the different user interface (UI) concepts. SAP S/4HANA Cloud only provides SAP Fiori-based user interfaces, while the SAP S/4HANA, on-premise, allows you to continue to use the traditional interfaces based on SAP GUI for Windows. SAP S/4HANA Enterprise Management Cloud (Private Option) is a private managed cloud solution, that is, a hosted service, in SAP HANA Enterprise Cloud (SAP HEC) and is a combination of the on-premise deployment model and the cloud deployment model.

Figure 3.4    The SAP S/4HANA Product Family

3.2.1    SAP S/4HANA, On-Premise

In SAP S/4HANA, on-premise, customers operate the software in their own system landscape. They are responsible for purchasing the necessary hardware, for installing and managing the software, and for maintaining the system (for example, implementing software changes). Currently, SAP S/4HANA is available in two on-premise editions:

• SAP S/4HANA Finance
• SAP S/4HANA

SAP S/4HANA Central Finance is an additional on-premise variant that enables global financial processes as a complementary instance for the operational systems in the system landscape.

SAP S/4HANA Finance

Released in 2014, SAP S/4HANA Finance was the first product from the SAP S/4HANA product family (at this time, SAP S/4HANA Finance was called the SAP Simple Finance Add-on for SAP Business Suite powered by SAP HANA). The data structures in the accounting area in SAP S/4HANA Finance were adapted to fully exploit the potential of SAP HANA’s in-memory database technology for the first time. Thanks to this modification to data structures in accounting, processes in Financials (FI) and Controlling (CO) can now be processed in one step, which was not possible before in SAP ERP because of high resource consumption. For more information on the individual product innovations, see Section 3.3.1.

At the time of this writing, the latest version is SAP S/4HANA Finance 1605. At present, SAP does not plan to offer another version of SAP S/4HANA Finance. If required, customers can migrate from SAP S/4HANA Finance to a newer version of SAP S/4HANA.

SAP S/4HANA

In November 2015, the second on-premise product was launched: SAP S/4HANA. Then referred to as SAP S/4HANA 1511, on-premise, or S/4HANA Enterprise Management, this version added further innovations in addition to those mentioned in the financials area. At the time of this writing, the latest version is SAP S/4HANA 1610. SAP refers to SAP S/4HANA as a new digital core for enterprise software. Figure 3.5 shows this digital core including the relevant innovations that cover various lines of business (LOBs).

Figure 3.5    Different Business Areas in SAP S/4HANA

For more information on product innovations in the individual business areas, see Section 3.3.

SAP S/4HANA is supplemented by functions from so-called compatibility packages (see Figure 3.6).

Figure 3.6    SAP S/4HANA Compatibility Packages

Compatibility packages provide functions with the traditional design you are familiar with from SAP ERP—functions, for example, for human capital management (SAP ERP HCM), for warehouse management (SAP ERP WM), or for transport management (LE-TRA). After migrating to SAP S/4HANA, these functions are still available in the same format (for example, the data model is not adapted, and the user interfaces also remain the same). However, these functions are not the target architectures from the technological perspective. For example, the target architecture for human capital management is SAP SuccessFactors; for warehouse management, SAP Extended Warehouse Management (SAP EWM); and for transport management, SAP Transportation Management (SAP TM). Consequently, compatibility packages provide functions that give you the option of continuing to use traditional functions to map these specific business requirements after you migrate to SAP S/4HANA.

[+]  Gradual Migration to the Target Architecture

Compatibility packages enable you to choose whether you want to migrate directly to the target architecture in these subareas or whether you’d rather continue using the traditional functions.

The useful life of the functions covered by the compatibility packages is restricted. Up to the end of 2025, you can continue to use these functions in the traditional format. After 2025, the license for their usage in SAP S/4HANA will no longer be valid.

SAP S/4HANA Central Finance

SAP S/4HANA Central Finance is a variant of SAP S/4HANA. In this variant, customers can connect their distributed system landscapes to a central SAP S/4HANA Finance system. Figure 3.7 demonstrates an example of a combination of SAP and non-SAP systems in which financial documents are replicated in SAP S/4HANA Central Finance.

[»]  More Information on SAP S/4HANA, On-Premise, Editions

For further information on SAP S/4HANA Finance, see SAP Help at https://help.sap.com/sfin. The “SAP S/4HANA Compatibility Scope Matrix,” attached to SAP Note 2269324, lists the functions mapped by compatibility packages.

For more details on SAP S/4HANA Central Finance, see SAP Notes 2148893 (Central Finance: Implementation and Configuration) and 2154420 (SAP Landscape Transformation Replication Server for Central Finance).

Postings from FI and CO are submitted from existing operational source systems to the complementary Central Finance system. The SAP Landscape Transformation Replication Server (SAP SLT Replication Server) is responsible for replicating the actual data from the decentralized source systems to the Central Finance system after the data has been initially exchanged. Optionally, a central master data system (e.g., SAP Master Data Governance (SAP MDG)) can ensure the relevant financial master data is distributed.

Figure 3.7    SAP S/4HANA Central Finance

3.2.2    SAP S/4HANA Cloud

In SAP S/4HANA Cloud, SAP operates and maintains the software. Customers access their SAP S/4HANA Cloud systems from any network with Internet access using a browser and a unique, customer-specific URL. Multiple types of end devices are supported.

Sophisticated security procedures such as the Transport Layer Security (TLS) encryption procedure secure the communications between customers and the SAP S/4HANA Cloud system. In addition to this technical procedure, the following security and quality principles apply to SAP S/4HANA Cloud:

• Business data is stored in data centers according to the highest security standards.
• Customers may share physical hardware, but their data is always stored separately.
• Users requiring access to business data have to authenticate themselves, and their identity needs to be verified by user and access management.
• Customers always remain the owners of their respective customer data.

After deploying an SAP S/4HANA Cloud system, you can implement your necessary business processes using the SAP S/4HANA Guided Configuration to guide you through implementation. Then, you can use the SAP S/4HANA migration cockpit to migrate the necessary data from your legacy system to the SAP S/4HANA Cloud system.

Currently, four public cloud editions with differing functions are available for SAP S/4HANA:

• SAP S/4HANA Professional Services Cloud
• SAP S/4HANA Finance Cloud
• SAP S/4HANA Enterprise Management Cloud
• SAP Hybris Marketing Cloud (previously, SAP S/4HANA Marketing Cloud)

You can integrate these cloud editions with other SAP cloud solutions such as SAP Ariba or SAP SuccessFactors. Figure 3.8 shows the editions currently available, including SAP S/4HANA Manufacturing Cloud, and that will be introduced soon. For more information on planned functions, refer to the SAP S/4HANA Cloud roadmap.

Figure 3.8    SAP S/4HANA Cloud Editions

SAP S/4HANA Professional Services Cloud

SAP S/4HANA Professional Services Cloud is a public cloud edition that maps project management functions. SAP S/4HANA Professional Services Cloud allows you to manage both internal projects and customer projects. The projects are integrated with order handling, project billing, and accounting, thus fulfilling end-to-end process scenarios.

Innovations in SAP S/4HANA Professional Services Cloud include the following examples:

• Resource management
  Integration of internal and external resources for project staffing
• Project analyses
  Analysis of the profitability of projects based on costs and revenues
• Project purchasing
  Project-related purchasing
• Integration with other SAP solutions
  Integration with various SAP and non-SAP systems, for example, a native integration with SAP SuccessFactors Employee Central, SAP Jam, and SAP Ariba is possible.

At the time of this writing, SAP S/4HANA Professional Services Cloud 1611 is the latest version.

SAP S/4HANA Finance Cloud

SAP S/4HANA Finance Cloud is a public cloud edition that focuses on business processes in accounting. SAP S/4HANA Finance Cloud integrates internal sales and purchasing processes with accounting and supports business processes with connections to SAP SuccessFactors and SAP Ariba.

Innovations in SAP S/4HANA Finance Cloud include the following examples:

• Principle of a one-tier system
  A shared Universal Journal for FI and CO postings optimizes business processes.
• Optimization of financial closings
  A soft financial close allows you to simulate period-end or year-end closings at any time, which helps ensure transparency during the current business year.
• Integration with SAP SuccessFactors
  Integration with the SAP SuccessFactors HCM Suite links the accounting processes to innovative HR processes.

At the time of this writing, the latest version was SAP S/4HANA Finance Cloud 1611.

SAP S/4HANA Enterprise Management Cloud

SAP S/4HANA Enterprise Management Cloud is a public cloud edition that enables you to map all business processes of an enterprise (i.e., sales, manufacturing, and purchasing), as well as financial functions, in the cloud. You can implement the following end-to-end processes with SAP S/4HANA Enterprise Management Cloud:

• Project management
• Planning and procurement
• Order handling
• Period-end closing
• Invoice processing
• Payment processing
• Profitability and cost analysis

Thus, SAP S/4HANA Enterprise Management Cloud is the most comprehensive edition of SAP S/4HANA in the cloud. Consequently, you can also integrate your business processes with SAP SuccessFactors, SAP Ariba, SAP Fieldglass, SAP Hybris, and Concur in this edition. At the time of writing, the latest version was SAP S/4HANA Enterprise Management Cloud 1611.

SAP Hybris Marketing Cloud

Until SAP S/4HANA 1611, SAP Hybris Marketing Cloud was called the SAP S/4HANA Marketing Cloud. A public cloud edition that focuses on marketing functions, SAP Hybris Marketing Cloud is designed for SAP customers who want to map campaigns or customer analyses in real time using a cloud-based software solution.

You can integrate SAP Hybris Marketing Cloud with other SAP S/4HANA solutions or operate it as a standalone solution.

Among others, SAP Hybris Marketing Cloud provides the following product innovations:

• Customer analyses in real time
  Based on the system’s real-time data, smart analyses can be generated for your decision-making processes, including predictive analyses of customer behavior or trend analyses. Web analyses examine customer behavior when navigating websites in real time.
• Personalized customer experience
  You can selectively approach customer groups via traditional sales channels or online and target them with personalized product offers and recommendations.
• Flexible marketing
  You can control marketing activities from planning and budgeting to coordination and implementation as well as develop marketing plans with budget management and cost monitoring in real time.
• Integration with other SAP solutions
  You can integrate SAP Hybris Marketing Cloud with various SAP and non-SAP systems. SAP Best Practices for integration are also available (for example, to exchange cost data between SAP ERP and SAP Hybris Marketing Cloud).

At the time of this writing, the latest version was SAP S/4HANA Marketing Cloud 1611. As of version 1702, the name changes to SAP Hybris Marketing Cloud.

[»]  Additional Information

More information on the SAP S/4HANA Cloud editions is available at http://help.sap.com/s4hana. You can find the roadmap for SAP S/4HANA Cloud at www.sap.com/s4roadmap-cloud.

3.2.3    SAP HANA Enterprise Cloud

Another variant is to deploy SAP S/4HANA as a managed cloud solution, that is, as a hosted service, in SAP HANA Enterprise Cloud (SAP HEC). In this variant of the private cloud deployment model, customers can individually choose between infrastructure and application management services. Depending on the scope of the selected services, a managed cloud, an IaaS offering, can operate more like an on-premise operating system or can operate more in the cloud.

In this context, SAP HEC supplements the SAP S/4HANA editions and links infrastructure services and application services. Customers can either solely use the cloud infrastructure or additionally outsource the operation and maintenance of the SAP S/4HANA software. You can use all functions of the SAP S/4HANA, on-premise, with this operating variant.

Customers can also flexibly select the application management services provided by SAP HEC. For example, 24/7 service desk operations, internal notification processing, transportation tasks (e.g., implementing SAP Notes), job management, authorization management, print management, or interface administration can be outsourced to service providers. SAP HEC is not only provided by SAP but is also available from selected service partners, such as IBM or Hewlett Packard Enterprise.

SAP S/4HANA Enterprise Management Cloud (Private Option)

The private cloud option for SAP S/4HANA Enterprise Management Cloud is a variant that meets specific enhancement and security requirements. For example, customers are provided with private cloud enhancement options that go beyond the scope of the options of the public cloud editions. Customers have dedicated systems and do not share system resources. In this cloud edition, customers can also better influence the frequency of software and content updates and have them implemented only once a year, for example. With regard to functions and supported country versions, the private option for SAP S/4HANA Enterprise Management Cloud corresponds to the SAP S/4HANA, on-premise.

[»]  Additional Information

For more information on SAP HANA Enterprise Cloud, go to https://www.sap.com/products/hana-enterprise-cloud.html. A list of external service partners who operate SAP HANA Enterprise Cloud is available as well.

For more information on the application management services, go to https://www.sap.com/germany/services/application-management.html.