Data is the key to numerous operations today! Most businesses rely on quality data to enhance their strategies and increase revenue. Sadly, however, the increasing competition and increased means of generating data tend to impact the actionable insights from it. Interestingly, many organizations are now switching to advanced ERP suites like SAP S/4HANA to improve data management and analytics. Built on the SAP HANA database, S/4HANA is the next-level ERP program integrating transactional and analytical processes to offer a seamless experience across different business functions.
Interestingly, however, that’s not all! There are numerous reasons why businesses are actively turning to the SAP S/4HANA for data management and analytics. Let’s learn more about them in the following section.
5 Ways SAP S/4HANA Impacts Data Management & Analytics
#1 Simplified Data Architecture
The basic design of SAP S/4HANA is focused on tackling the problems posed by conventional ERP systems. Older systems would split data between multiple databases and modules, introducing inconsistency, massive space consumption, and inefficiency in operations.
However, things are different with SAP S/4HANA. It doesn’t complicate systems and integrates into a single platform, eliminating redundant data storage. This approach also streamlines data governance and reporting, reducing the chances of errors or inconsistencies in reporting. It also provides firms with an integrated approach to data while eliminating the need to examine smart data separately.
For instance, SAP S/4HANA integration allows business owners to combine financial and operational aspects of their operations. It allows the CFOs and other stakeholders to have an integrated view of the company’s finances with minimal effort directed toward reconciling information from different sources. This integrated approach improves transparency and leads to better business decisions.
#2 In-Memory Computing for Real-Time Data Processing
One of SAP S/4HANA’s main features is its in-memory processing capabilities. Unlike conventional databases that store data on drives, SAP HANA processes data in memory and necessitates laborious read-and-write operations. This facilitates immediate data access, allowing for real-time data processing and analysis.
In today’s fast-paced business environment, real-time data access is essential when enterprises must respond swiftly to shifting market conditions. With SAP S/4HANA, businesses can handle massive amounts of data in milliseconds, which leads to quicker decision-making, more precise projections, and the capacity to act on insights right now.
For example, a shop might automatically initiate restocking orders when particular criteria are achieved and track inventory levels in real-time. Likewise, finance teams always have access to the most recent financial data, which makes financial planning more flexible and dynamic.
#3 Embedded Analytics for Instant Insights
One of the most significant selling points for most Enterprises has been the integrated analytics that SAP S/4HANA powers. Instead of relying on third-party reporting tools, customers can get these powerful analytics capabilities from directly within the ERP system. The embedded analytics provides transactional data to offer users real-time, contextual insights to make decisions based on the data without moving away from the SAP interface.
Doing so enables business users to interact and work with data better. For instance, a sales manager may have one place to monitor an organization’s clients’ orders, analyze sales statistics, and forecast demand. By embedding analytics in your everyday operations, you minimize the dependence on other data warehouses or business intelligence systems and thus drastically reduce the time to insight.
What’s more? SAP S/4HANA also delivers machine learning and predictive analytics algorithms to help businesses predict emerging threats, trends, and opportunities. These predictive models help predict equipment failures and determine how to maintain equipment best to lower downtime and operational costs.
#4 Advanced Data Management and Governance
Effective data management and governance also secure data security, quality, and compliance—essential to ensuring organizations are under strict regulation. SAP S/4HANA offers robust data management capabilities, which help companies determine the high quality and uniformity of master data.
SAP also includes MDM (Master Data Management) characteristics, ensuring that core business entities, such as customers, products, suppliers, and employees, are standardized at the company level. Businesses that have a singular set of master data can cut down silos and generate accurate reporting, thus reducing errors in operations.
Apart from MDM, SAP S/4HANA offers data cleansing, validation, and enrichment solutions. These tools support organizations in improving their data quality, enabling them to produce better business analysis and decision-making. The platform also ensures data protection compliance, which aligns with standards like GDPR, giving businesses greater assurance about handling sensitive customer and financial data.
#5 Integration with Cloud and Big Data Technologies
Today, many organizations leverage cloud computing and big data technologies to elevate their analytics capabilities. For example, SAP S/4HANA can be seamlessly combined with SAP Analytics Cloud, data from third-party data pools, and other cloud-based services to enhance organizational abilities in data storage and processing.
This combination opens the analytical possibilities of combining structured and unstructured data from multiple sources for more valuable insights. For example, companies may leverage SAP S/4HANA transactional data with social data, IoT sensor data, or any external datasets to allow extensive analytical capabilities while gaining a 360-degree view of their operations.
Moreover, SAP S/4HANA’s cloud environment allows organizations to extend their data management capabilities depending on their needs. Organizations can quickly respond to changing data volumes and workloads without worrying about limitations on on-premise infrastructure. This flexibility is especially advantageous for organizations dealing with fluctuating workloads or seasonal spikes in data processing capacity.
Be Part of Change with SAP S/4HANA!
SAP S/4HANA is the future of intelligent businesses! Its new and improved features make it one of the go-to options for organizations that need to keep an edge in their operations.
Don’t wait to make a move; connect with our experts at Avally, your go-to ERP consulting company, today!
