Is your business still on SAP ECC? With support ending in 2027, the time to upgrade to SAP S/4HANA is fast approaching. For many companies, migration is becoming inevitable, but the process can feel daunting.
Should you migrate now or wait? How can you ensure a smooth transition? These are common questions among ECC users. To address these questions, you must understand the key differences between SAP ECC and SAP S/4HANA.
In this article, we explain in detail how the two systems vary in technicality, functionality, database, and other key aspects. By the end, you’ll have a clear understanding of what sets SAP S/4HANA apart from ECC, which should help you plan an efficient migration strategy.
What is SAP ECC?
SAP ECC (ERP Central Component) was SAP’s flagship ERP product for enterprises. It was launched in 2004 as the successor to SAP R3, and quickly became one of the leading ERP systems, used by thousands of businesses.
ECC operates primarily with the SAP GUI (Graphical User Interface), which has been the main interface for interacting with the system. However, the SAP GUI is quite outdated compared to more modern user interfaces.
Currently, the latest version is SAP ECC 6.0, which consists of specific modules for different business functions. SAP also offers Enhancement Packages (EHP) which allows users to selectively add specific functionalities. We’ve listed the core modules below.
What is SAP S/4HANA?
SAP S/4HANA is the latest ERP system developed by SAP for enterprises. Launched in 2015, it is the next-generation successor to SAP ECC. It offers advanced functionalities, improved performance, and a simplified data model.
Unlike ECC, SAP S/4HANA only runs on the SAP HANA database, which is SAP’s in-memory, column-oriented relational database management system. This enables faster data processing and real-time insights. It features the modern SAP Fiori interface, providing a more intuitive, user-friendly experience compared to the SAP GUI.
SAP S/4HANA is available in three deployment options.
- On-Premise: The system is installed and managed on the company’s own servers.
- Cloud Public Edition: The system is hosted in a private cloud environment for greater control and security.
- Cloud Private Edition: The system is hosted in a fully managed, scalable cloud solution by SAP, with regular updates and lower upfront costs.
As for functionality, SAP S/4HANA includes a wide range of modules in addition to 25 industry-specific functionalities (add-ons). Below are the core modules in SAP S/4HANA.
Key differences between SAP ECC and SAP S/4HANA
There’s a lot of discussion within the SAP ecosystem regarding the end of support for SAP ECC. Many businesses have been using SAP ECC for years. For such companies, their ERP system holds tons of historical data, and intricately configured business processes. Migrating to the modern SAP S/4HANA is inevitable, but it’s also an enormous task.
At APPSeCONNECT, as a leading SAP integration platform, we see many prospects and ECC users raise these concerns. And for most of them, the starting point is to clearly understand what has changed between these two systems.
So what are the key differences between SAP ECC and S/4HANA?
Differences in User Interface
The change in interface between the two systems is a major difference. SAP ECC uses the outdated SAP GUI.
But SAP S/4HANA implements SAP Fiori – the more user-friendly, modern, interface, as well as SAP GUI, considering many users are already trained and familiar with it. You have the flexibility to choose as per your preference.
Differences in Application Engine
The application engine in SAP S/4HANA is faster and more efficient with a simplified data model. It’s built for multiple tenancy and handles complex business processes very well in real-time. The system is capable of in-memory computing and advanced processing capabilities that push certain calculations directly to the database layer.
Differences in Database Layer
As mentioned, SAP S/4HANA uses SAP HANA, an in-memory database that delivers superior speed and real-time data processing. SAP ECC can run on various databases, including third-party ones, but lacks the optimized in-memory functionality that S/4HANA offers.
You can also run ECC on the HANA database through the Suite on HANA (SoH) configuration. But it still can’t leverage the full capabilities of the modern database as compared to SAP S/4HANA.
Now let’s explore these technical and functional differences in detail.
SAP ECC vs. SAP S/4HANA: Differences in User Interface
One of the most noticeable differences between SAP ECC and SAP S/4HANA is the user interface.
SAP ECC operates with the SAP GUI (Graphical User Interface), a traditional interface that has been around for many years. Though functional, the SAP GUI is known for being complex and less intuitive. Users often requiring training to navigate the interface effectively.
In contrast, SAP S/4HANA introduces SAP Fiori, a modern, user-friendly interface designed to provide a more intuitive, responsive, and personalized experience. SAP Fiori is based on the principles of design thinking, focusing on usability, simplicity, and ease of navigation.
Fiori also works seamlessly across devices, enabling access from desktops, tablets, and mobile phones. This means employees can use the system on the go, improving productivity and providing greater flexibility.
For users who are comfortable with SAP GUI, you can configure the traditional interface in SAP S/4HANA as well.
Quick Summary:
SAP ECC’s SAP GUI can feel clunky and outdated for many users. SAP S/4HANA comes with the Fiori interface which is easier to use and navigate. And it still supports the SAP GUI, making it a flexible system in terms of interface.
SAP ECC vs SAP S/4HANA: Differences in Application Engine
SAP ECC’s application engine was robust for its time. But SAP ECC 6.0 came out in 2005, and the latest enhancement package – EHP 8 – was released in 2016. The underlying system and architecture is already decades old, and even the latest update is outdated.
SAP S/4HANA on the other hand, was released in 2015 and it has received 8 updates so far with a major update every year till 2023.
Although S/4HANA is the upgraded system for SAP ECC, you can imagine the technological shift between both systems. Here are the major differences between the application engine in SAP ECC and SAP S/4HANA.
Simplified Data Structures
In SAP ECC, the system uses many aggregate and index tables to calculate totals and store derived data for quick access. For example, material-related data is stored across separate tables for master data, transaction records, and aggregated reports (e.g., MARA, MSEG and MKPF tables).
SAP S/4HANA simplifies this by replacing multiple tables with a single logical table called the Universal Journal (ACDOCA). It is the central table in SAP S/4HANA for all financial and operational data. ACDOCA stores all data at the most granular level which enables real-time reporting without pre-calculated totals.
Also, SAP ECC has separate master data objects for related entities. For example, ‘Customer’ entity in FI and SD is separate, and so is the ‘Vendor’ entity in FI and MM. SAP S/4HANA replaces individual Customer and Vendor records by merging them into a single entity as Business Partners.
Real-time Processing
In SAP ECC, certain processes like Material Requirements Planning (MRP) rely on batch jobs, which are scheduled periodically. This can cause delays in obtaining updated results, as businesses must wait for the overnight processing of these jobs.
SAP S/4HANA addresses this limitation by enabling real-time processing through in-memory computing. With S/4HANA, MRP and similar operations are executed instantaneously, allowing businesses to respond to changes and make decisions in real time rather than relying on outdated data.
Enhanced Use of Core Data Services (CDS)
SAP ECC processes most of its business logic at the application layer. That means calculations and operations often depend on transferring data between the application and database layers. For large calculations, huge amount of data needs to transfer from database to application layer which slows down the process significantly.
SAP S/4HANA uses Core Data Services (CDS) views to push business logic and calculations directly to the database level. So complex calculations are processed in the database itself, and only the final values are transferred to the application layer. This minimizes data transfer and dramatically speeds up operations like reporting and analytics.
Embedded Analytics
Reporting and analytics in SAP ECC are often managed by external tools, such as SAP Business Warehouse (BW) or third-party applications. But this method is inefficient since users must extract data manually.
S/4HANA integrates embedded analytics directly into its application engine, allowing users to access real-time insights within the system itself. For instance, while creating a sales order, users can instantly view dashboards and KPIs, enabling them to make informed decisions without leaving the transaction screen.
Modern Integration Capabilities
SAP ECC relies heavily on traditional integration methods like IDocs and batch processing for connecting with other systems. While functional, these methods are often rigid and outdated. S/4HANA, on the other hand, adopts a modern API-first approach.
By leveraging REST APIs and OData services, S/4HANA makes it easier to integrate with cloud platforms, eCommerce systems, and CRM tools, ensuring seamless data exchange and enabling businesses to adopt new technologies more efficiently.
Quick Summary
SAP ECC vs SAP S/4HANA: Differences in Database Layer
Finally, another key difference between SAP ECC vs. SAP S/4HANA lies in the database layer. So far, you’ve already learned that ECC can run on any database, while S/4HANA exclusively runs on the SAP HANA database. There are two key factors that make the SAP HANA database a better choice for enterprises.
Columnar Storage in SAP HANA
Unlike traditional databases used by SAP ECC, which primarily use row-based storage, SAP HANA uses columnar storage.
Columnar storage organizes same category of data in columns, which offers significant advantages when performing read-heavy operations, especially analytical tasks. With columnar storage, the database can perform efficient compression, aggregation, and calculations.
It will retrieve data faster as same data types are arranged in columns. For you, this means faster access times and improved performance. This is particularly beneficial for operations like reporting and real-time analytics.
Calculations at the Database Layer
Traditional databases can store and fetch data, pushing it to the application layer for calculations. As mentioned earlier, SAP S/4HANA uses Core Data Services to perform calculations at database layer itself, minimizing heavy data transfer.
That means unlike traditional databases, SAP HANA can perform calculations and aggregates. It’s a simple but highly efficient change from older systems that makes a huge difference in performance.
Quick Summary
- While SAP ECC supports multiple databases, SAP S/4HANA exclusively runs on SAP HANA, leveraging its advanced in-memory and columnar storage capabilities.
- SAP HANA also performs calculations directly at the database layer. It reduces data transfer and enhances system performance.
- These features allow faster data retrieval, efficient analytical processing, and real-time insights.
Why should enterprises migrate from SAP ECC to SAP S/4HANA?
As SAP ECC support nears its end in 2027, businesses must evaluate the benefits of migrating to SAP S/4HANA. Here are key reasons why migrating from SAP ECC to SAP S/4HANA is essential.
- SAP S/4HANA is built to support modern technologies like AI, IoT, and machine learning.
- Regular updates and ongoing support ensure the system remains up to date, unlike ECC, which is reaching the end of its lifecycle.
- The SAP Fiori interface offers an intuitive, responsive, and mobile-friendly user experience.
- Fast and efficient real-time data processing and data transfer.
- S/4HANA’s API-first approach facilitates seamless integration with cloud platforms.
Simply put, SAP S/4HANA is faster, smarter, and better in many ways compared to its predecessor. Of course, it’s not so simple to upgrade your ERP system. Migration is a long and complex process, but it’s essential.
While migration involves upfront costs, S/4HANA’s advanced architecture can lead to significant operational savings through reduced downtime, better resource utilization, and lower maintenance requirements.
The best move for enterprises is to start preparing now, and slowly making the necessary steps towards a smooth transition from ECC to S/4HANA.
To get started, check our detailed guide below.
What’s next – Planning for SAP S/4HANA Integration?
System integration has become a standard necessity for enterprises. As you plan an ERP upgrade, you must also prepare to integrate SAP S/4HANA with other applications, such as your CRM or accounting system.
APPSeCONNECT is an SAP-certified integration platform as a service (iPaaS) which offers industry leading integration solutions for SAP S/4HANA. We offer pre-built connectors and custom integrations to connect SAP S/4HANA with popular CRMs, eCommerce platforms, and marketplaces like Amazon.
Explore our SAP S/4HANA integrations below:
Frequently Asked Questions (FAQs) about SAP ECC vs. SAP S/4HANA
1. Is SAP ECC ending?
Yes, SAP ECC is reaching its end of support in 2027. This means SAP will no longer provide updates, patches, or technical assistance for ECC systems after this date.
2. Can I keep using SAP ECC after end of support?
Technically, businesses can continue using SAP ECC after 2027, but it is not recommended. Without official support, companies will struggle with new bugs and errors, compliance, security vulnerabilities, and the inability to leverage newer technologies.
3. What is SAP S/4HANA?
SAP S/4HANA is SAP’s latest ERP system designed for modern enterprises. Launched in 2015, it is the successor to SAP ECC and offers advanced features such as real-time data processing, in-memory computing with SAP HANA, and the intuitive SAP Fiori interface.
4. When to migrate from SAP ECC to SAP S/4HANA?
It is advisable to start planning your migration as soon as possible. Migration is a complex process that involves assessing system readiness, customizing functionalities, and training users. Starting early ensures a smooth transition without disruptions to your business operations.
5. Does SAP S/4HANA integrate with other applications?
Yes, SAP S/4HANA is designed for seamless integration. It adopts an API-first approach and supports modern protocols such as REST APIs and OData. Integration with other applications, such as CRMs, eCommerce platforms, and marketplaces is possible with a reliable integration platform like APPSeCONNECT.
