The Key Differences between SAP ECC and S/4HANA

When explaining the key differences between SAP ECC and S/4HANA to a non-technical stakeholder, it is important to highlight the following points:

SAP ECC (ERP Central Component):

• Traditional on-premise enterprise resource planning (ERP) system.
• Based on a client-server architecture.
• Utilizes the traditional row-based database management system.
• Requires separate installations for different modules like FI, CO, MM, etc.
• Follows a rigid and linear business process flow.
• Limited real-time analytics capabilities.

S/4HANA:

• Next-generation cloud-based ERP solution.
• Built on an in-memory computing platform.
• Utilizes columnar data storage for faster processing and access to data.
• Combines various modules into a single system for a simplified architecture.
• Supports agile and flexible business processes with real-time insights.
• Emphasizes digital transformation and innovation.

Overall, while SAP ECC is a traditional ERP system with limited capabilities, S/4HANA represents a modern and intelligent ERP solution that enables businesses to streamline processes, make data-driven decisions in real-time, and adapt to changing market dynamics more effectively.