What is SAP?

SAP is a leading provider of software solutions for managing Business processes, and facilitating information flow among organizations through effective data processing solutions.

“We are thrilled that SAP’s revenue has once again ranked us No. 1 ERP software vendor in Gartner’s Market Share Analysis report,” said Jan Gilg, SAP senior vice president and head of SAP S/4HANA Development. “As organizations continue to look for intelligent solutions to optimize and innovate business processes, we are committed to offering our customers a leading ERP system, which enables companies to address current challenges and future opportunities with flexibility, speed, and insight”

Here We find how SAP works..? What are some of the top SAP trends?

As a centralized system, ERP (Enterprise Resource Planning) is the company’s most prominent feature. The first version of SAP ERP was launched as a complete financial accounting system, known as SAP/R1. As a result of the design of SAP R/1, the one-tier architecture included three layers (Presentation, Application, and Database) in one system server.

Besides ERP software, SAP developed several complementary applications such as an enterprise data warehouse, a CRM (Customer Relationship Management), a Supply Chain Management tool, etc.SAP expanded its portfolio even further with the acquisitions of Business Objects, Ariba, SuccessFactors, Hybris, and Concur in 2008.

It is always encouraging to learn about technology’s conception and how it is reshaping the digital world in such a way that it contributes to the growth of the industry. Additionally, it is also important to stay up-to-date with the current trends and technologies of the most beneficial skill, which helps you make the most of your competitive edge in the workplace.

Top Trends  for Digital Transformation in SAP 

Let me tell you how SAP  helps businesses to achieve their goals with its smooth digital transition.

Among the technologies that can help organizations improve productivity are blockchain, artificial intelligence, the internet of things, cloud computing, and robotic process automation. ERP plays a crucial role in the integration of all these technologies into the organizational value chain, as well as serves as a platform for accelerating digital transformation. Let’s look at some SAP top trends that will take over the world in 2021 and beyond.

• S/4 HANA
• SAP with the Internet of Things
• SAP with Blockchain 
•  SAP FSM
• SAP analytics cloud and big data
•  SAP Ariba
•  SAP Marketing cloud
• SAP MM (Material Management) 

Trend 1. S/4 HANA

S/4 HAbegan its journey in 2015 with some difficulties. By the end of the first quarter of 2018, the usage had risen by 43 percent. The S/4 HANA comes in handy when the strategist is implementing or upgrading ERP. With this tool, information can be centralized in the cloud. This module is designed to help in solving complex administrative work when it comes to handling a large amount of data.

What is SAP HANA? The Complete Overview of What it is and How it Works

 S/4 HANA is one of the latest trends with SAP and a modernized ERP system built on the SAP HANA in-memory database that makes it possible for companies to perform real-time transactions and analyze business data. By using this system, companies can respond to constantly changing business needs, customer demands, and environmental conditions more quickly, adaptable, and resiliently. The S/4HANA-centered business environment is called the intelligent enterprise by SAP.

The advantages of S/4HANA

The SAP S/4HANA solution enables companies to move up in the ERP game by combining a simplified data model, lean architecture, and a new user experience based on the SAP Fiori user interface. S/4HANA is also equipped with a wide range of advanced technologies, such as AI, machine learning, IoT, and advanced analytics. SAP HANA and the integrated technologies of S/4HANA make it possible for users to analyze more data faster than previous SAP ERP products thanks to their in-memory database design. S/4HANA, besides being available on-premises, is also available in public clouds or hybrid clouds. SAP S/4HANA Cloud, which differs from the on-premises version in terms of its modules and features, is also available.

Business lines supported by S/4HANA

S/4HANA started out as a series of modules, each with a distinct line of business functionality. Simple Finance was the first module and provided real-time financial data analysis and streamlined financial processes. As SAP Finance, it helped businesses align both financial and non-financial data into one source of truth. As a first step on the road to S/4HANA, Business Suite users typically implement SAP Finance.

After S/4HANA was introduced, SAP ECC ERP modules were reorganized into lines of business (LOB) that include functions for specific business processes. Initially, SAP S/4HANA Finance was the first LOB, and subsequent releases have added other LOBs.

The following LOBs will be supported by S/4HANA in 2022:

S/4HANA Finance – 

It provides comprehensive financial management, including financial accounting, controlling, treasury and risk management, financial planning, financial close, and consolidation.

S/4HANA Logistics –

There are several modules in S/4HANA Logistics related to suppliers and supply chains, including:

• S/4HANA Sourcing and Placement, including elements such as procurement, operational purchasing, supplier management, and contract management of raw materials needed to fulfill orders
• S/4HANA Manufacturing, concentrating on processes related to manufacturing products, such as making products faster, managing production, planning delivery schedules, and ensuring quality
• S/4HANA Supply Chain, which provides complete logistics planning and manufacturing operations from pre-production through distribution, including production planning, batch traceability, warehouse management, inventory management, and transport planning; and
• S/4HANA Asset Management, including maintenance and EHS monitoring for a company’s fixed assets, such as machines, plants, warehouses, and buildings.

S/4HANA Sales

Pricing, sales inquiries, quotes, promise checks, completion checks, repair orders, individual requirements, return authorizations, credit, and debit memo requests, picking and packing, billing, and revenue recognition are all managed by S/4HANA Sales.

S/4HANA R&D and Engineering

R&D and Engineering in SAP S/4HANA cover the entire product lifecycle, including the definition of the product structure, Bill of Materials, project planning, portfolio management, innovation management, chemicals management, and compliance with health and safety regulations.

Further industry-specific capabilities were added to the digital core LOB later. Consumer industries were the largest sector in 2022, followed by Discrete Industries, Energy and Natural Resources, Financial Services, Public Service, and Service Industries.

The S/4HANA releases have added new functional capabilities as well as integration with SAP cloud products (SAP Ariba, SuccessFactors, Fieldglass, and Concur) and other enterprise systems; and an expanded architecture that incorporates emerging technologies, including AI, machine learning, IoT, advanced analytics, and blockchain in more functional modules.

Trend 2. SAP with the Internet of Things

IoT improves customer experience dramatically, and it is evident, especially in the retail sector. By allowing customers to interact directly with products, usually in an augmented reality or virtual reality environment, technology enhances the shopping experience. The Internet of Things allows devices to connect to the internet. The SAP implementation can enhance businesses’ security, help them better understand data, analyze market data, and much more through IoT. You can integrate SAP with other applications to create predictive analytics, behavior maps, and others. SAP Connected Goods is SAP’s best example of the Internet of Things.

Trend 3. SAP with Blockchain

In addition to SAP with the Internet of Things, SAP with Blockchain is available. Businesses would need a secure platform for storing, transferring, and accessing the information collected by the Internet of Things. SAP and BlockChain are capable of creating a secure environment for information, while at the same time providing stakeholder transparency.

There are a few examples of blockchain in supply chain management, but there are a growing number of them being investigated, including:

• Supply chain finance

Recently, blockchain and supply chain finance have attracted a lot of interest because they can provide more transparency and security and improve invoice processing efficiency.

• Supply chain logistics

The high number of go-betweens and back-and-forth between partners causes a lot of friction in modern supply chains. Therefore, suppliers, providers, and customers interact through third parties rather than directly. According to DHL, blockchain promises to simplify global supply chains by allowing transactions to be recorded, verified, and coordinated independently without third parties.

• Supplier payments

American Express says: “Blockchain technology promises to facilitate fast, secure, low-cost international payment processing services (and other transactions) through the use of encrypted distributed ledgers that provide trusted real-time verification of transactions without the need for intermediaries such as correspondent banks and clearing houses”. 

• Cold chain traceability

Storage and shipping of pharmaceutical and food products are often similar. IoT sensors on products coupled with blockchain technology can record temperature, humidity, vibration, and other environmental metrics. Whenever a reading is out of range, smart contracts are used to ensure automatic redress. 

• Food safety

Cross-contamination is a difficult issue to track and isolate when it comes to food safety. As a result of the lack of data and visibility in the supply chain, it is difficult to address issues quickly and reduce unnecessary waste and the cost of recalls. Blockchain is being used by a consortium to ensure all product movement and status are transparent within the supply chain.

 Trend 4. SAP FSM

This tool makes it possible for companies to handle their complete service process on one platform. Services are delivered by taking requests from customers. It allows a company to automate many functions of service management, and extract useful information that can be used to make decisions. SAP FSM can also be integrated with the Internet of Things, reducing numerous real-time mundane tasks. It is trending today, to integrate SAP FSM into an assembly platform for easy delegation and dividing operations.

Any industry with employees in the field could benefit from field service management. Implementing field service management software is most beneficial to the utilities, healthcare, construction, home improvement, property maintenance, and telecom industries.

Some of the most common industries that use FSM include:

Utilities (gas, water, electricity)

Healthcare

Construction

Home Improvement & Property Maintenance

Telecom

The following tasks might be performed by a field service manager for a company selling home healthcare devices:

• Planning and scheduling sales presentations and meetings
• Setting up and inspecting equipment with the assistance of technical specialists
• Keeping track of employee progress

Trend 5. SAP analytics cloud and big data

There is nothing new about big data. Cyberspace information is being used by companies to make the best of their decision-making strategies by utilizing data collected there. Making AI-based data analysis easier and creating insightful information for an organization’s wellness is possible with the SAP analytics cloud.

These are some examples of everyday applications of Big Data.

1. Transportation
2. Advertising and Marketing
3. Banking and Financial Services
4. Government
5. Media and Entertainment
6. Meteorology
7. Healthcare
8. Cybersecurity
9. Education

Trend 6. SAP Ariba

In 2012, SAP acquired Ariba, “vendor management” technology. Ariba focuses on streamlining contract and vendor management, whereas it previously did not make quite a splash. Ariba is known for its simplicity and network capabilities. 

Cloud-based SAP Ariba connects buyers and sellers on a single platform so they can do business together. In addition to providing less cost-effective ways to procure, it simplifies business procedures and makes it easier for an organization to manage its vendors.

Following are the solution areas covered by SAP Ariba’s cloud solution: −

• SAP Ariba Supplier Management − This system manages supplier information, lifecycle, performance, and risk all in one place, and from anywhere in the world.
• SAP Ariba Strategic Sourcing − Manages all types of spend – direct materials, indirect materials, and service spend – for sourcing, contract negotiation, and spend analysis.
• SAP Ariba Solutions for Direct Spend − Manages all design-to-deliver activities by connecting people, processes, and information.
• SAP Ariba Procurement − Reduces costs and risks while improving compliance, visibility, and control.
• SAP Ariba Financial Supply Chain − Enables companies to close the source-to-settle circle by improving cash flow, releasing working capital, and enhancing overall profitability

Trend 7. SAP Marketing cloud

SAP introduced several new innovations in the Marketing Cloud technology early in 2019. . Using SAP Marketing Cloud, multiple campaigns can be managed simultaneously. The top management can create better campaigns by automatically analyzing and comparing data from many marketing events. By supplying detailed customer information in real-time, the SAP Marketing Cloud helps you to get to know your customers better and personalize your approach across all channels. This will result in a higher conversion rate and enhanced customer retention.

SAP Marketing Cloud (formerly Hybris Marketing) unifies user data into a centralized hub so that brands can deliver contextual, consistent, relevant experiences to all customers, regardless of the channel or device they use.

• Data Management: Views people interacting with your brand from a 360-degree view, so you can target them in the right context, in real-time.
• Recommendation: Provides customer recommendations that are timely and relevant, converting interest into conversion.
• Segmentation: This allows you to create customized campaigns across multiple channels using high-performing audience segmentation.

Trend 8. SAP MM (Material Management) is an SAP ERP component that manages materials, inventory, and warehouses in the supply chain process. This function is part of SAP ECC’s logistics functions, which consists of several components. Master Data, Purchasing, and Inventory are the three most popular and widely used components. Using this module, data associated with inventory procurement, planning, and control can be managed.

Features of SAP MM

• It can manage both materials and inventories.
• Maintains a continuous supply of materials in the supply chain.
• Enhances the efficiency of material management and procurement.
• Business environments are continually changing, and it helps to increase productivity and cut costs.
• The software helps organizations manage various business aspects such as procurement, inventory management, invoice verification, and material requirement planning.

The Future Trend for SAP- The Integration with AI

New technology options include products and services. Installation, application, maintenance, and improvement processes are continuously being improved to simplify their use. In addition, it is important to develop skills in the current trends and technologies that are in demand around the globe. This helps to stand out from the crowd in global competition.

The following are some of the most popular options available in today’s  SAP ERP systems:

What is enterprise resource planning (ERP) software?

Enterprise resource planning software brings together day-to-day data from many departments, allowing for a unified view of the company. A business management system combines key metrics and detailed information, including finance, human resources, operations, manufacturing, and sales. System ERP centralizes data, reduces manual entry, and makes business data visible to teams and key stakeholders.

Self-service configuration: A self-service configuration for PCs, tablets, and phones provides an enhanced user experience while maintaining high security and privacy. For self-service and advanced business processes, dashboards, workflows, business rules, and alerts can all be customized.

ERP analytics and reporting: Take action with access to your data, reports, and analytics. A modern database, dashboard, or KPI runs in memory on the cloud instead of an old server. Their single source provides accurate, real-time business information, as well as integrated document management for reviewing the information contained in contracts, specifications, purchase orders, invoices, and other business documents. Having these capabilities is critical to a growing business.

A complete, integrated software solution: ERP systems integrate multiple functions, such as customer relationship management (CRM), e-commerce, operations, supply chain management, manufacturing, field service, and accounting, so you don’t have to run separate software packages for each department. A lack of integration causes islands of isolation, which hinder productivity and impact the bottom line.

Company-wide customer data: Providing access to company-wide data will improve customer service. The latest technologies not only capture transactions but also show how your customers interact with your team as a whole. We evaluate your competitive performance and profitability by combining sales, quotes, pricing, customer portals, order fulfillment, field service, and costs.

Artificial intelligence in ERP: Productivity can be increased using artificial intelligence (AI). Business information can help you shorten lead times and reduce costs by providing insight into your business processes. Those insights can be used to create expert systems, for example, to identify malfunctioning equipment and troubleshoot it.

Embedded machine learning: 

Automate workflows through machine learning. As your data is processed, computers are able to “learn,” making it easier for them to automate core functions, like determining where to post accounting transactions.

Extended functionality: 

Furthermore, modern ERP systems are able to integrate with other technologies to provide alerts and facilitate better decision-making. For example, IoT integration involves sending and receiving critical information across equipment, vehicles, and ERP systems.

Cloud services to provide wide-reaching access: Businesses need access to their business systems that is fast, secure, and private. With cloud services, you can meet that need in any country, as well as provide your team with access from any mobile device, such as a phone or tablet, anytime, anywhere. Moreover, ERP cloud technologies are easy to integrate with other cloud applications, such as those that calculate sales taxes during sales order processing.

Conclusion

SAP will soon be dominated by these trends… The trends we have outlined will boost business efficiency and speed, and they will also lead to innovations in the fight against this pandemic.

It is my goal to provide readers with a functional perspective on RISE and SAP’s various layers. Please feel free to include your questions or feedback in the comments section. 

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