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Articulating roadmap critical for SAP S/4 HANA adoption

ORLANDO- โ€˜How many times โ€œSimpleโ€ was used in todayโ€™s #BillMcDermottโ€™sย keynote?โ€™ tweeted one of the attendees today at SAPโ€™s Sapphire Now conference here.

Nobody probably really knows. Those that tried to determine just how much probably lost count halfway through the SAP CEOโ€™s keynote which focused on the software makerโ€™s efforts to extend the reach of SAP HANA further into the realm of non-technical users. The companyโ€™s latest effort involves the release last February of SAP Business Suite 4 SAP HANA or S/4 HANA. The solution is essentially the result of SAPโ€™s re-writing of its enterprise resource planning software, Business Suite in order to optimize it to run on its HANA in-memory platform.

Now that organization have access to larger amounts of data ever, there is a greater need to be able to sift critical data from information that does not matter and be able to glean actionable insights from that data, according to McDermott.

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โ€œNinety per cent of the data in companies is dark. We have to digitize the core operations,โ€ he said. โ€œOur digital business will bring the power of SAP technology to individual, using the simple approaches theyโ€™re already familiar with to their personal lives.โ€

Bill McDermott SAP
Bill McDermott

S/4 HANA is designed to connect users, devices and business networks in real-time to support the development of business models. โ€œIt will also help accelerate the on-ramp to Internet of Things and big dataโ€ and an โ€œon-ramp to Internet of Things and Big Data,โ€ according to SAP. It is meant to allow customers to use solutions such as customer relations management and human resources application on-premises or in the cloud.

Whereas other solutions are unwieldy, S/4 HANA comes in a smaller package that allows administrators and users to analyze data faster and cheaper.

He said S/4 HANA now has 400 customers around the world.

โ€œS/4 has data footprint that is 10 smaller than other solutions, but it is 1,800 times faster in analyzing data than anything in the market,โ€ said McDermott. โ€œThis means itโ€™s time to say goodbye to the graveyard shift.โ€

S/4 also benefits from the use of a user interface based on SAP Fiori which clothes robust capabilities under a โ€œconsumer-friendly, easy-to-useโ€ UI, he said.

However, Ramini Street, a provider of enterprise software support services for products from SAP and other vendors such as Oracle and Business Objects, released yesterday results of a survey of 230 SAP licensees which pointed to some challenges around S/4 HANA.

The survey said only 14 per cent of the polled licensees have committed to using S/4 HANA with 33 per cent saying โ€œnoโ€ and 52 per cent indicating โ€œmaybeโ€ to the solution.

The top reason for their reluctance were: โ€œno strong business case and unclear ROI (68 per cent; and โ€œunproven, early stage product (44 per cent).

Itโ€™s far too early to judge S/4 HANA or the merits of the survey according to some analysts since the product was only launched less than four months ago.

โ€œIt is a little bit early for customers to assess S/4,โ€ according to Paul Hamerman, principal analyst for business application at Forrester Research Inc. โ€œBut the most important thing is for SAP to articulate to customers the companyโ€™s roadmap and the value proposition of S4/ HANA.โ€

The Forrester analyst said the productโ€™s ability to deliver HANA capabilities either on-prem or via managed cloud or public cloud is a boon for many SAP customers. However, this message appears to have been lost in the โ€œconfusionโ€ that resulted during the February announcement.

โ€œThe adoption trend for software-as-a-service (SaaS) is significant for SAPโ€™s business. They have more than $1 billion in subscription now and they want to grow it over the next five years at a much faster rate,โ€ said Hamerman. โ€œThey need to make it clear to the users what S4/HANA features will be available and when and what benefits these will bring.โ€

At least one Canadian company is upbeat about S4/HANA.

โ€œSAP is rewriting the enterprise backbone,โ€ said Patricia Nagel, vice-president of global alliances for Waterloo, Ont.-based OpenText Corp. โ€œWe will continue to support to develop solutions for S/4 HANA.โ€

SAP offers its customers solutions extension developed by OpenText that enable users to easily discover, capture, managed, secure and use digital data.

A long-time partner of SAP, OpenText announced yesterday the launch of new integrations to the HANA platform for SAP Document Presentment applications. The release will provide customer insights and contextualize multi-channel communications.

The company also announced Vendor Analytics powered by SAP HANA for the Invoice Management Application developed by OpenText.

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