Illumiti Innovation Blog

What SAP S/4HANA 2021 Brings to the Enterprise Part 2

Date: July 19, 2022
By: Lorraine Howell

Understanding the Business Value of S/4HANA 2021

The ability to innovate before competitors, adapt to market speed, operate in uncertainty, and pioneer and grow with a modern ERP have never been more important. The first step to getting there is to better understand what SAP S/4HANA 2021 brings to the table as a modern ERP platform.


In Part 1 of our introduction, we focused on the 

value of real-time insights available through SAP S/4HANA 2021, the embedded analytics and functionality within the core that gives the core an end-to-end capability to manage your processes, and new business processes that support the digital economy.

In Part 2, we look at the power of artificial intelligence (AI) technologies across business processes, out-of-the-box integrations, the modern user experience, and more.

Artificial Intelligence (AI) Technologies

AI is embedded in the S/4HANA core, for example, within new Fiori apps that SAP has released into the latest version. So you have things like conversational AI capabilities and automation capabilities across business processes. Let’s take a closer look.

  • Customizable Chatbots - Chatbots have been available for a while in S/4, but with 2021 you can customize them to work the way you want them to work for S/4HANA user assistance and support, thus mirroring the consumer market where more than two thirds of consumers use a conversational interface for customer support
  • Automation of Standard Processes – Let’s say that you want to be able to upload sales orders into SAP that arrive in multiple formats e.g. from an Excel spreadsheet or in an email. Without writing any extensive code, this can now be automated, possibly removing any human intervention
  • Use of Historical Data to Predict/Optimize – Machine learning capabilities are using historical data, for example, to match and clear documents for intercompany reconciliation.
  • Connection to Real-Time Sensor Data – You can facilitate and improve existing business processes with real-time connection to sensor data, for example, giving you a spatial representation of your assets within the system itself, and the ability to tap into that data using AI to predict when the asset would need maintenance

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Out-of-the Box Integrations

There are many solutions that complement the end-to-end processes that exist in the S/4HANA core to provide complementary functionality and ease of use across the web —for example, travel expense management through Concur or managing employee performance through SuccessFactors via the Web. Many solutions integrate automatically out of the box with SAP S/4HANA and the list continues to grow.

A myriad of solutions form this intelligent enterprise, all of which you can access through the SAP Fiori Launchpad or through SAP's latest edition, SAP Work Zone. This out-of-the-box integration provides a “one user” experience across the entire SAP portfolio.There’s also integration with third-party solutions like ServiceNow, for example, if you're using ServiceNow for incident management, or even connecting into MS Teams if you're using Teams actively to run your business.

Modern User Experience (UX) – Fiori

Even though you can use the Fiori Launchpad and the Fiori applications with ECC already, SAP has enhanced a lot of the Fiori apps to work with the data structures in the simplified S/4 world.

  • You’ll find that the Enterprise Search capabilities are fast and efficient on a HANA database
  • There’s In-App Assistance through the conversational AI that we introduced above
  • You have Instant Notifications, so that if anything is going through a workflow process within the system, you are notified through the Fiori event Launchpad immediately that it needs your attention
  • Fiori Apps are available to Use on Any Device
  • Exception-Based Management KPIs that help you run your business on exception are available via the Launchpad

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Flexible Workflow

The workflow engine in the latest versions of S/4HANA is very different from the old workflow that we knew in ECC, enabling you as customer and you as end-user to build your own workflow processes. Create your start condition(s), define appropriate approvers, create groups of users to receive a particular notification, etc.—all from an easy end-user interface.

Situation Handling

Also enhanced in 2021 is situation handling, which is different from workflow. An error needs attention, or perhaps inventory has run out and someone needs to be notified. Instead of going into an error log that you may not look at until month end, you get an immediate notification in the system to remedy the situation quickly. The number of areas within the system that these situations can address has increased exponentially in the latest version of 2021.

The Bigger Picture: Intelligent Enterprise and Composable ERP

Realize that an intelligent enterprise extends beyond the S/4HANA core to include things like the:

  • Business Technology Platform—where you can leverage tools like machine learning and AI, as well as compose applications to complement your business
  • Business Networks – where you can manage contractors through Fieldglass, manage travel expenses through Concur, or source and procure inventory items through Ariba or Logistics Business Network, for example
  • Industry Cloud – where SAP has built applications such as Spend Management, The Asset Intelligence Network, and Digital Manufacturing Cloud that you can leverage

From an Illumiti perspective, we’re getting to a point where we will be publishing applications into the industry cloud as well to support things like collecting production stats in the mining industry or capturing field data, for example.

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There are tons of solutions, capabilities, and tools that can support you running your business, and it’s critical to have those integrated so that you have one source of truth at the end of the day. Moving to S/4HANA also sets the stage for the future of ERP, which Gartner calls Composable ERP, an adaptive technology strategy that enables an enterprise to keep up with the pace of business change. On that note, consult Illumiti’s whitepaper on Composable ERP for more details.

As we approach 2027, your organization will be joining hundreds of thousands of enterprises across the globe migrating to SAP S/4HANA. Explore a day in the life of an SAP user with Illumiti’s SAP S/4HANA Interactive tool: https://illumiti.com/a-day-in-the-life-of-an-sap-user/

About the Author

Lorraine Howell

As Vice President of Innovation at Illumiti, Lorraine is intricately involved in determining how clients can effectively and affordably benefit from the innovations at SAP regarding business intelligence and mobile applications.

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