SAP S/4HANA adoption is on the rise worldwide. The company reported that the total user base for its S/4HANA ERP package had crossed 20,000, up from a measly 370 back in 2015. While S/4HANA has seen increased adoption from larger businesses, smaller companies are still on edge. Prohibitory costs, internal IT complexities, and lack of dedicated testing are reasons behind this hesitation.
On the other hand, many of these fears are unfounded. After all, the S/4HANA doesn’t just elevate the ERP suite; it also unlocks potentially game-changing advantages for businesses. It lowers the operational cost, offers a better user interface, easier maintenance, better third-party integration, faster MRP2 runs, a simplified data model, and intelligent automation. With a robust test automation solution, this migration can introduce companies to a more efficient and transformative way of working.
This blog will discuss the various business benefits of S/4HANA migration and the role of test automation in ensuring a smooth transition.
What are the various business benefits of SAP S/4HANA?
Companies that have completed the S/4HANA migration have already witnessed this system’s clear advantages. Due to the HANA in-memory database, the platform enables real-time data insights, faster access to data volume, and efficiently streamlined workflows.
Here are five core advantages of S/4HANA over older ERPs such as SAP ECC.
1. Helps make your business model more agile and flexible
Times have changed. Evolving market demands, shaped mainly by the pandemic, have forced companies to change and pivot rapidly. When the older ERPs were commonplace, companies didn’t have to deal with extensive supply chain disruptions, advanced cybersecurity threats, and remote workforces. Today, flexibility and adaptability are crucial to survival in a competitive market. Moreover, businesses need to capitalize on the new opportunities that have opened up. This act requires tons of data modeling and business restructuring – all of which are only possible on the SAP S/4HANA. Making fundamental changes in the business model during acquisitions and expansion sprees becomes much more manageable.
2. Brings acquisitions into the ERP system faster
This is a functionality that opens up new avenues for companies that are aggressively expanding into newer markets via acquisition. Earlier, it was necessary to bring these acquisitions into the core ECC system. Whereas, with S/4HANA, all they need to do is keep the acquisitions on the SAP public cloud.
3. Reduces ownership costs
It is estimated that S/4HANA helps companies see an 11-17% reduction in IT costs. This is supported by the fact that S/4HANA leaps forward from physical infrastructure to a cloud-native platform. The physical assets needed to be upgraded every five years, causing cost overruns and expensive maintenance overtures. On the other hand, public and private clouds combined with SAP’s virtualization can help organizations consolidate their infrastructure at a lower price.
4. Gives faster, more accurate insights
The in-memory HANA database has a smart design that reduces aggregate tables and data redundancy, boosting overall performance. Since companies have ready access to data storage and analytics in the same system, they can get insights faster, speeding up the entire decision-making process. It enables organizations to perform big-data analysis, giving them the flexibility to respond rapidly to changes. This in-memory technology also reduces the carbon footprint, which can be measured with elaborate scaling tools. Businesses can become more sustainable and prepare for a greener future.
5. Simplifies all processes
Even though SAP hasn’t completely let go of its standard GUI, it has been redesigned to become more visually efficient. It reflects all the new enhanced business processes while providing the same end-to-end visibility as before. Moreover, companies can also opt for the SAP Fiori UI for business processes on iOS and Android devices.
Lastly, it also brings in intelligent automation to speed up routine tasks, freeing up resources for cognitive and core business problems.
How does test automation help with the S/4HANA migration?
This transition is about agility and efficiency, both of which require an effective testing strategy. Test automation needs to form the core of this strategy, unlike before, when testing was the last stage in development.
S/4HANA migration involves several moving parts within a turbulent environment. Constant upgrades and changes compel testers to test integrations multiple times, which is simply impossible manually. Test automation helps you achieve your testing outcomes as outlined in the framework.
Choosing the right test automation solution is another crucial factor. The chosen solution must promote efficiency, modularity, and reusability. It must give end-to-end visibility and test automation coverage without compromising testing speed. With Avo Assure, you can achieve all of these and more. The 100% no-code approach and cross-platform compatibility allow you to test over 100 technologies seamlessly. With the SAP Test Accelerator kit, you get access to pre-build SAP-specific keywords that further expedite SAP releases. See how Avo Assure helped a Fortune 500 manufacturer improve SAP application quality and get to market 5x faster.
Schedule a demo today to learn more about how Avo can help with S/4HANA migration.