It is a well known fact that small companies make up the majority of companies in the UK; the largest number of companies in the UK have less than 10 people. And then there are the major companies in the UK that are responsible for nearly 75% of the UK Turnover. In the middle are SMEs; companies defined as typically employing between 100 and 999 employees, according to Gartner, with revenues somewhere between £100m to £700m.
Usually these companies have limited IT resources and require an ERP system with broad and deep functionality as well as a low cost of ownership. Historically many of these companies have grown by acquisition and are operating several ‘ERP’ systems for each subsidiary.
It is management who then take a look at consolidating the operations and turn to Gartner, and others, to see who is in the Magic Quadrant.
For the fifth year in a row SAP makes the Leaders quadrant, which rates ERP systems on the ability to support the combined administrative and operational needs of a company.
The other decision to make is, on-cloud or on-premise? This has several variants that can be adopted and each has its own business case depending on the business needs and current environment. The key is in knowing the user should not care. Ultimately, it is the capability of the business function that they should care about.
So what does S/4HANA do? A simplified yet more powerful business suite that can be deployed in the cloud or on premise, containing all the required functionality of the previous released SAP modules at reduced cost. Previously termed ‘Simple’, SAP decided this had a negative effect on expressing the functionality that had been simplified from a technical and operational perspective, not the inherent capability. However, the S/4HANA suite did gain significant traction with companies wanting to move away from batch processing, enabling faster reporting and take advantage of the improved User Experience, SAP Fiori.
SAP has also announced that all new innovations will be exclusively on S/4HANA. So should SME’s faced with several options in software and processing environments look to S/4HANA? The answer is YES.
If you are an SME that’s looking for an ERP solution, or even if you have an old SAP core system that requires upgrading for the latest ‘simple’ functionality, have a look at S/4HANA.