How to Best Understand SAP’s S/4HANA Announcement

Executive Summary

  • Accenture and other Big Consulting Companies provide large amounts of information on S/4HANA.
  • We evaluate the accuracy of this information.

Introduction

SAP introduced its S/4HANA system, and it had its partners chime in about how great S/4HANA is and why companies should implement it.

“Numerous long-standing SAP partners are ready to resell and provide services for customers along their journey to run simple with SAP S/4HANA. Read what early adopter partners — including Accenture, Capgemini, Deloitte Consulting LLP, EY and PwC — have to say.”

Accenture

“For businesses looking to take advantage of an always on, digitally connected and Big Data-driven world, Accenture has developed a high velocity enterprise approach that delivers enhanced ERP assets featuring disruptive technology like in-memory and powered by digital accelerators like social, mobile, analytics and cloud. For companies ready to embark on their digital transformation journey, SAP S/4HANA is a powerful platform that works with our high velocity enterprise framework to extend the value of SAP HANA. Our broad understanding of digital and the SAP solutions landscape combined with our superior industry expertise and global delivery capabilities means Accenture is ready to help organizations use SAP S/4HANA to create differentiated capabilities for their businesses and engage with their customers in new and more meaningful ways.” Mark Willford, senior managing director, Technology Ecosystem & Platforms, Accenture

It’s interesting how completely vacuous this paragraph is.

  • What exactly is a high-velocity enterprise?
  • Ahhh, the term digital transformation is raised, which is a misleading marketing term as this article covers The Problem With Using the Term Digital Transformation for IT Projects.
  • Superior industry expertise for what industry? Or does Accenture maintain that it has superior industry expertise in ever single industry?

This is utterly meaningless from beginning to end.

Let us see what Capgemini has to say.

Capgemini

“We are delighted to join SAP for the launch of SAP S/4HANA and offer our customers the opportunity to simplify their ERP landscapes and accelerate innovation through the adoption of the SAP HANA platform. As an early investor in SAP HANA and a leading partner in terms of the number of active SAP Business Suite powered by SAP HANA projects worldwide, Capgemini is ideally positioned to demonstrate the value of SAP S/4HANA to both IT and business decision makers. We look forward to helping our clients take advantage of the game-changing real-time insights of SAP Simple Finance and working with them to maximize the business benefits of SAP S/4HANA.” Jerry Lacasia, Global SAP partner executive at Capgemini

S/4HANA does not simplify anything; in fact, it makes implementation far more complicated and more expensive. It also does nothing to simplify ERP landscapes. S/4HANA is not particularly innovative. Adjustments have been made to ECC, but it hard to identify any innovation.

Cap Gemini may be an early investor in S/4HANA but they even now have very few S/4HANA resources that have ever been on a S/4HANA project. The rest of the paragraph is throwaway.

Deloitte Consulting LLP

“Deloitte has been delivering SAP HANA since some of the first clients adopted the platform, and working closely with clients on the adoption of SAP Simple Finance. As an in-memory technology, SAP HANA removes the latency of decision-making and is foundational to the future of real-time business. SAP S/4HANA is a game-changer for ERP and provides an entirely new way for our clients to simplify their business and provide a better customer experience in a digital, networked and complex world.” – Jan Waals, principal, Deloitte Consulting LLP and global SAP practice leader

Deloitte did adopt the S/4HANA platform, but primarily to resell the experience in the form of billing consulting hours. HANA does not remove the latency of decision making. It improves the speed of analytics processing, but we do not know about decision making speed changing. S/4HANA does not simplify the business of companies that implement it.

EY

“We have seen tremendous interest in SAP HANA from our customers as a means to transform their business. The combination of EY’s transformation focus and SAP S/4HANA will allow our clients to begin managing their businesses more efficiently by bringing access to data and analytics real-time and helping to deliver instant value to the business. EY continues to invest in building and growing our SAP offerings and experience and we have highly skilled, industry focused consultants ready to help our clients transform their business and enable this next generation of ERP.” Michael Yadgar, EY Americas SAP Leader

Will S/4HANA deliver instant value to the business? This article was written by SAP in February 2016, but in 2017 very few companies anywhere have seen value from S/4HANA. I have research coming out that indicates that very few customers even have S/4HANA live, and this is over a year after this article was written.

PwC

“Businesses today are awash in data and faced with increasingly complex markets, customer engagement channels and business processes. Transforming technology systems can help simplify business processes, while providing more value to customers. SAP S/4HANA can help users connect processes, devices, Big Data and networks in real time. SAP has combined its expertise in business software applications with the unique power of SAP HANA to help businesses jump-start innovation and manage processes smoothly.” – Rodney Seligmann, Advisory Principal and SAP Global Alliance Leader, PwC

S/4HANA has absolutely nothing to do with Big Data. SAP does not have much of a Big Data solution. As far as connecting to networks, ECC is already connected to the network through something called an “ethernet cable.” The ethernet cable is a hyper-advanced technology that plugs into the server. Rodney Seligmann may have seen this in his life. Ethernet cables also come in different colors. It also connects to ECC right now in real time. The ethernet cable carries information all around companies through a network infrastructure all in real time. That is how emails get from companies as well.

ECC can also connect to devices. You don’t need S/4HANA to connect to devices. As for processes, S/4HANA does not connect to processes. Rather it models processes. But ECC also models processes. If it didn’t, it would not have sold very well.

This quotation makes one wonder if Rodney knows what an ethernet cable is or that devices can be already connected to ECC or that SAP has nothing to do with Big Data.

Conclusion

The falsehoods contained in these comments is impressive. These companies have spokesman who has no idea what they are talking about and are simply repeating platitudes provided to them by SAP. The quotations are both deceptive and idiotic as well as being insulting to anyone with a reasonable intelligence or above.

SAP’s Inaccurate Messaging on S/4HANA as Communicated in SAP Videos

Fact-Checking SAP Information on S/4HANA

This video is filled with extensive falsehoods. We will address them in the sequence they are stated in this video.

SAP Video Accuracy Mesurement

Appleby's StatementAccuracy % of the CommentExplanationLink to Analysis Article
S/4HANA is what allows key processes to be digitized.
0%
ECC was already fully digitized and digitized across key business functions.The Problem with Using the Term Digital Transformation on IT Projects
HANA is a Platform
0%
HANA is not a platform, it is a database.How to Deflect You Were Wrong About HANA
Fiori is a major advantage for S/4HANA.
10%
In S/4HANA implementations Fiori is infrequently used when S/4HANA. How Accurate Was SAP on the Number of Fiori Apps?
Fiori is far more efficient than what came before.
10%
In testing Fiori and S/4HANA, Sven Deneken's statements did not hold up. There was a particular weakness in actually making changes after noticing something needed to be changed, and we found the efficiency below that of ECC with of course SAPGUI.
S/4HANA is innovative as it brings "real time inventory."
0%
Sven Deneken brings up the topic of "real-time capabilities," however there is nothing particularly real-time or different in terms of a reaction than ECC. Whenever you make a change in ECC or any other ERP systems for that matter, the entry is real-time. Sven Deneken states that "the physical inventory is the same as the digital inventory." However, under what system would this not be true?What Happened to the Term Perpetual Inventory?
S/4HANA is innovative because it allows access to supplier information.
0%
Sven Deneken states that information about the supplier is "just a fingertip away." Sven Deneken may be familiar with ECC, where supplier data is also a fingertip, or say mouse click away. It called the Vendor Master in ECC.
Sven Deneken says that the cycle could be changed to daily or sub-daily.
0%
Why would that occur? This is a very strange scenario that is being laid out.
S/4HANA is innovative because it allows MRP to be rerun interactively for a product location.
0%
Sven Deneken is extremely confused when he states that S/4HANA allows a fresh MRP run to be performed for a specific product location and that this is a differentiator for S/4HANA. For a single product location, there is no ERP system that cannot run MRP for a single location. Secondly re-running MRP does not remove uncertainties. MRP can be re-run when something changes. For example, when the forecast changes.Performance Problems with HANA and MRP
Sven Deneken states this demo shows SAP has reimagined inventory management.
0%
However, all of this functionality, save for several of the graphics shown in the video have already been available in ECC for many years, in fact, decades.

The Problem: A Lack of Fact-Checking of S/4HANA

There are two fundamental problems around S/4HANA. The first is the exaggeration of S/4HANA, which means that companies that purchased S/4HANA end up getting far less than they were promised. The second is that the SAP consulting companies simply repeat whatever SAP says. This means that on virtually all accounts there is no independent entity that can contradict statements by SAP.

Being Part of the Solution: What to Do About S/4HANA

We can provide feedback from multiple HANA accounts that provide realistic information around S/4HANA — and this reduces the dependence on biased entities like SAP and all of the large SAP consulting firms that parrot what SAP says. We offer fact-checking services that are entirely research-based and that can stop inaccurate information dead in its tracks. SAP and the consulting firms rely on providing information without any fact-checking entity to contradict the information they provide. This is how companies end up paying for a database which is exorbitantly priced, exorbitantly expensive to implement and exorbitantly expensive to maintain. When SAP or their consulting firm are asked to explain these discrepancies, we have found that they further lie to the customer/client and often turn the issue around on the account, as we covered in the article How SAP Will Gaslight You When Their Software Does Not Work as Promised.

If you need independent advice and fact-checking that is outside of the SAP and SAP consulting system, reach out to us with the form below or with the messenger to the bottom right of the page.

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

S/4HANA Implementation Research

We offer the most accurate and detailed research into S/4HANA and its implementation history. It is information not available anywhere else and is critical correctly interpreting S/4HANA, as well as moderating against massive amounts of inaccurate information pushed by SAP and their financially biased consulting ecosystem.

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References

*https://news.sap.com/partner-quote-sheet-sap-unveils-next-generation-enterprise-software-new-business-suite-sap-s4hana/

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ERPThe Real Story Behind ERP: Separating Fiction From Reality

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Break the Bank for ERP?

Many companies that have broken the bank to implement ERP projects have seen their KPIs go down— but the question is why this is the case. Major consulting companies are some of the largest promoters of ERP systems, but given the massive profits they make on ERP implementations — can they be trusted to provide the real story on ERP? Probably not, however, written by the Managing Editor of SCM Focus, Shaun Snapp — an author with many years of experience with ERP system. A supply chain software expert and well known for providing authentic information on the topics he covers, you can trust this book to provide all the detail that no consulting firm will.

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  • Chapter 12: Conclusion