What Is The Difference Between SAP ERP And SAP S/4HANA?

November 7, 2022

Business management software is more popular than ever.

This isn’t much of a surprise, since more and more people are starting their own businesses from home. The use of such software can make it much easier to manage one’s business (especially for individuals without actual experience).

This type of software is also sometimes called ERP software (‘enterprise resource planning). ERP software can be used to manage more or less all areas of a business, from finance to payroll, and even sales. The wide availability of software means it’s very difficult for business owners to choose a type that’s right for them.

At the moment, SAP ERP and SAP S/4Hana are very popular with business owners. They are both manufactured by the same company, SAP SE.

While they are both enterprise resource planning programs, there are differences between them. This post will tell you what those differences are.

1. Financial Management

Financial management is something that business owners should take very seriously. If entrepreneurs don’t manage their finances well, then they could end up misusing money, or not being able to pay their taxes at the end of the year. Financial management is a key component of most ERP programs. While SAP ERP and SAP S/4HANA both have great financial management resources, most experts agree that SAP ERPs are considerably better. By looking at this SAP ERP vs SAP S/4HANA comparison, one can see that SAP ERP has more capabilities than S/4HANA. For financial management, SAP ERP is therefore the better option.

2. More Innovations

SAP S/4HANA has many more innovative additions made to it than SAP ERP. For example, the program has simplified or changed functionalities to make them easier for users to navigate, has replaced old functionalities with new ones, and unified functionalities that were previously separated. With that said, SAP ERP is still a very useful program and is definitely worth using.
Just because the S/4HANA program is more innovative, that is not to say for a second that SAP ERP is not useful or is not innovative in its own unique ways.

3. Better Scalability

Out of the two programs, SAP ERP is a lot more scalable. In the context of ERP software, scalability refers to a program’s ability to keep up with your business’s trajectory, direction, and changes. Compared to SAP S/4HANA, SAP ERP is a lot better at keeping up with increases in workload and data volume. With all of that said, S/4HANA can still be scaled up. It is just not as scalable as SAP ERP is. Therefore, if you need software to be highly scalable and are stuck between the two, SAP ERP is the better option for your business.

4. User Interface

If you have some experience with ERP software or SAP programs already, then SAP ERP is a very easy program to get started with. Its user interface is very simple, and the initial setup is a pretty simple and straightforward process. The same cannot be said for SAP S/4HANA. The internet is awash with guides exploring how to use SAP S/4HANA for the first time, because of how challenging the platform can be to become an expert in. With that said, if you have experience with ERP programs or SAP products before, you will find using the program easier, but not as easy as SAP ERP.

5. Departmental Integration

Many of the users of SAP ERP say that the platform’s best feature is how easy it is to integrate various departments, like purchasing, finance, sales, trading, and human resources. Integrating departments makes it a lot easier to run one’s business. It also makes it a lot easier to run said departments more efficiently. It should be noted again, SAP S/4HANA still offers good departmental integration, at least compared to other non-SAP programs. It is again just that SAP ERP is the superior option when compared to SAP S/4HANA, which is still a good program in its own right. You can still integrate all modules on S/4HANA.

6. Memory Database

Most experts agree that one of the key highlights of the S/4HANA program is its memory database. S/4HANA is a combination of software and hardware, used to process huge amounts of data in real-time. Memory is always something that you need to think about when you are planning on using ERP software. You need to find a program that has as much memory as possible. A cloud edition of the program has also been released in recent years.

SAP SE is an indomitable force in the ERP industry. If you are a business owner who’s interested in investing in ERP software, then you have no doubt heard their name before. Take the time to research their products and find the one that’s right for you.