SAP HANA ; S/4 HANA and S/4 HANA Finance in Nutshell.


In traditional data warehouse, real time data analytics is not possible. It is limited by the design consideration or lets say its not designed to be Real time.

SAP HANA is an in-memory database and application platform. What makes it different is the design consideration, which was not in traditional databases. It uses or lets say it stores data (all of it) in In-memory, making mixed used of Columnar and Row storage . The data compression ratio could be as high as 1:10. It allows you to stay away from indexes, materialization and aggregation, which now can be done on the fly.You can run your Analytics and OLTP application on the same instance there by reducing the system landscape complexity and do adhoc analysis .

Traditional Way : –

Screen Shot 2015-11-16 at 10.28.02 PM

Limitation in this design :-

  1. Redundant data at multiple places.
  2. Reduced speed because of multiple data access from different sources and models.
  3. No single source of truth.

With SAP HANA: –

Screen Shot 2015-11-16 at 10.29.02 PM

Benefits :-

  1. Single source of truth.
  2. No redundant data
  3. Less complex landscape and ease of maintenance.

Image courtesy (all right reserved – “Real Time Analytics with SAP HANA “ ) . 

As shown in the above diagram, With SAP HANA, the key is pushing as much of the logic execution into the database as possible. Keep all the data intensive logic down in the database as SQL, SQLScript, and HANA Views.


So then the question arises what is S/4 HANA ?

S/4HANA is natively built on SAP HANA with simplified data model, without indices , aggregates and no redundancies. It leverages the multi tenancy functionality of SAP HANA. It can be deployed on premise, cloud or mixed/hybrid . It is natively designed with SAP Fiori offering an integrated user experience .

Frankly speaking, in essence S/4HANA is ‘just’ a new name for the same good old ERP functionality – the difference however is in that ERP can now run on an in-memory database (SAP HANA).

(Image courtesy –

So now I have brief idea about SAP HANA and S/4 HANA , what is then SAP Simple Finance ?

SAP Simple Finance is an add-on to ERP, which means it is a standard product developed to work on top of SAP ERP (ECC6.07 to be precise). The official name used to be ‘SAP Simple Finance add-on 2.0 for SAP Business Suite’. The Finance add-on replaces the classic Financials applications in your SAP ERP system. In contrast to accounting in SAP enhancement package 7 for SAP ERP 6.0, Simple Finance comes with a simplified data model. Totals tables and application index tables have been removed and replaced with HANA views with the same technical names. A list can be found at the below table. This means the impact needs to be assessed on your interfaces, your data warehouse, your authorization profiles and potentially your monitoring tools.

Screen Shot 2015-11-16 at 11.44.11 PM….. we would be back with more on SAP HANA simple finance in our next Blog ……

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About the Author: Vinay Singh

Vinay Singh has MBA and BE (CS) degrees and is an SAP HANA/BI architect at Freudenberg Sealing Technology, Germany, working in the SAP Analytics area. He has nearly 10 years of SAP experience in the field of SAP product development and consulting. Before joining Freudenberg, he worked with companies such as SAP Labs, Adobe, and T-systems, which gave him a good mix of product development and consulting experience. He has been an author and coauthor on numerous articles in various journals and has officially reviewed a couple of books on SAP Analytics topics. He is also a visiting faculty at Hochschule Furtwangen University, BW, where he teaches SAP HANA under the SAP UCC program.

Series on SAP HANA

1. SAP HANA from Space Level

2. SAP HANA at Ground Zero

3. View the HANA Views from different angles

4. ‘ABAP for SAP HANA’ Points to remember

5. SAP HANA ; S/4 HANA and S/4 HANA Finance in Nutshell

6. Smart Data Integrator & Data Load In SAP HANA



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  1. Hello Vinay,

    That was one good detailed explanation for a HANA starter. Expecting more real time issues and resolutions in future blogs.

    Fujitsu Japan.


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