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This guide compares SAP ECC and SAP S/4HANA, highlighting their differences in architecture, performance, and features. It explains how S/4HANA’s in-memory database, simplified data model, and Fiori UI improve speed and user experience. The blog also helps businesses understand migration benefits and choose the right ERP solution for future growth.
SAP’s market demand has reached a new high. Companies across
all industries are increasingly turning to SAP to help them run their
operations more efficiently. If you’re a startup company trying to establish
itself, or an experienced business mapping out your next big step, the
transition to ERP solutions is the right move. Knowing the difference between
SAP ECC and SAP S4 HANA can have a remarkable impact on how your company grows
in the long run. After reading this guide, you will be able to decide which ERP
system is best suited for the needs of your organization.
SAP ECC stands for SAP ERP Central Component. It's a
traditional ERP system, and for more than 20 years, it has remained the
backbone of thousands of businesses all over the world.
Key Overview Points of ECC:
SAP S/4HANA stands for SAP Business Suite 4 SAP HANA. It's
SAP's most intelligent, next-generation ERP system with a completely new user
experience – built exclusively on the SAP HANA in-memory platform.
Modern ERP Vision:
The architectural and database differences between SAP ECC
and SAP S4 HANA are very prominent. Understanding them is very important to
know which type of database will work and support your workflow better.
|
Aspect |
SAP ECC |
SAP S/4HANA |
|
Database |
Supports multiple databases (Oracle, DB2, SQL Server) |
Only runs on SAP HANA in-memory database |
|
Data Processing |
Slower data retrieval with disk-based storage |
In memory processing for immediate data access |
|
System Speed |
Transactions take seconds to minutes to be processed |
It processes a magnitude of calculations in a matter of
milliseconds |
|
Hardware Requirements |
Standard server infrastructure |
Designed for modern, high-performance servers |
The data models and system design reveal significant
structural differences between SAP S/4HANA and SAP ECC. A good understanding of
how each system stores and processes the data can help businesses in selecting
the platform that best meets their needs.
|
Feature |
SAP ECC |
SAP S/4HANA |
|
Data Tables |
Uses different tables for totals and line items |
Single unified table structure |
|
Data Redundancy |
There is a high redundancy with aggregate tables |
A cleaner data model with minimal redundancy |
|
System Complexity |
Having more tables leads to more maintenance |
Simplified tables decrease administrative burden |
|
Data Storage |
Needs more room for storage |
Storage required is reduced by up to 75% |
SAP ECC manages business processes on a daily basis, but so
does SAP S/4HANA; however, the way in which they do it differs. Reviewing these
functional distinctions enables organizations to determine which system best
fits their routine business activities.
|
Process Area |
SAP ECC |
SAP S/4HANA |
|
Financial Closing |
Monthly closes can run for days |
Real-time closing at any time |
|
Material Requirements Planning (MRP) |
Runs in batch mode overnight |
Can be run live during the day |
|
Inventory Management |
Separate inventory control module |
Integrated with embedded analytics |
|
Purchase Order Processing |
Standard transaction-based workflow |
Streamlined with predictive capabilities |
How these systems look and how they actually feel to work on
are completely different. Here’s what you should know about:
|
Element |
SAP ECC |
SAP S/4HANA |
|
Primary Interface |
SAP GUI (classic green screen interface) |
SAP Fiori (finished, web-based look and feel) |
|
Mobile Access |
Limited mobile functionality |
Full mobile-responsive apps |
|
User Training |
Steeper learning curve for new users |
Intelligent design that minimizes training time |
|
Personalization |
Basic customization options |
Highly personalized user experience |
In today's fast-paced business world, waiting for
yesterday's reports isn't good enough. The ability to access real-time data and
make instant decisions can be the difference between seizing an opportunity and
missing it entirely. Here's how both systems handle analytics and performance:
|
Capability |
SAP ECC |
SAP S/4HANA |
|
Report Generation |
Separate Business Warehouse (BW) needed |
Transactional data is where embedded analytics can be run
on |
|
Real-time Reporting |
Limited; most reports are based on the prior day’s data |
Total real-time insight into operations |
|
Predictive Analytics |
Needs third-party tools |
Built-in AI and ML capabilities |
|
Dashboard Performance |
Slow rendering if the report is complex |
Instant dashboard rendering |
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The possibilities for system configuration and modification are
different between SAP ECC and SAP S/4HANA. By understanding these differences,
businesses gain insight into how flexibly they can adapt each system to their
way of working and to their future requirements.
|
Aspect |
SAP ECC |
SAP S/4HANA |
|
Availability |
Best for serving on Premise |
Available on-premises, as a cloud service, and as a hybrid
(combination of on-premises and cloud) offering |
|
Customization Approach |
A lot of custom code (Z-programs) was allowed |
Focuses on extensions rather than modifications |
|
Integration |
Point-to-point integration |
API-first architecture for simplified connectivity |
|
Update Cycle |
Big upgrades every few years |
Continuous innovation with quarterly release updates
(cloud) |
Knowing what the future of your model is is an important
business consideration while assessing the difference between SAP ECC and SAP
S4 HANA. This will tell you which systems are still supported and for how long,
so you can make your choice.
Transitioning from ECC to S/4HANA is not a small job. Consider the following factors carefully for a more meaningful and careful shift:
Clean up your existing data before migration. Years of transactions usually result in duplicate records, outdated master data, and superfluous custom codes. A clean foundation makes your new system more efficient.
Examine all your custom programs and modifications. Not everything from ECC will work in S/4HANA. Determine what to retain, what to substitute with out-of-the-box configuration, and what to reconstruct with new solutions.
S/4HANA opens new possibilities for process improvement. Rather than simply replicating old workflows, consider how your company actually operates today, and leverage real-time data and simplified transactions.
Your ERP decision has immediate consequences for the efficiency of your day-to-day operations, your costs, and your competitive edge. Both platforms address different organizational requirements.
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