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SAP Evolution from R/1 to S/4 Hana

Updated: Jan 29, 2022

About SAP-

SAP is German multinational Software Company especially known for ERP software that makes business operations to run smoothly and maintain customer relations.

Founded in 1972 as a private company by five engineers from IBM AI department.

SAP ERP Evolution-

Whenever major technology shifts occurred SAP is always rebuilding the business applications and some of the key moments in SAP’s application development history are following-

1972- R/1 is not considered as a major release.

1979- SAP invests in ERP and builds standard business software based in technology as SAP R/2 supports and integrates major business functions in real time and handles multi-currency and multi country implementations.

1992- R/3 system introduced by SAP as there was rise in the personal computer and firs time with client/server architecture as three- tire approach and processing split across three layers – Client, application and database with improvement in the end user experience.(Better screen)

2004-To meet the customers demand of better integration between their business applications and web, SAP developed new application called as SAPNetweaver so all the applications of business can run on the common platform and customers can build and integrate existing applications easily using SOA (Service oriented architecture). Now the name R/3 replaced by SAP ERP and it is part of larger family known as SAP Business suite which also includes many other line of business (LOB) SAP CRM.

2015- Huge memory and multi core processors arrive to offer massive computing power and the existing SAP application does not fully utilize the power of new hardware so the rewrite of complete business suite required and new business suite is called SAP S4HANA.


SAP S4 HANA is not a single product and includes many applications so customer can start with basic components and add others later. So it is great to start with S4 HANA Enterprise management also known as ‘Simplified core’. It supports to all the core business processes such as OTC, PTP and many other.

SAP S4 HANA Line of business (LOB) solution (SAP CRM, SRM) easily integrates with the Core and overlaps and redundancy completely removed by S4 HANA.

Important point that SAP S4 HANA is built natively and optimally to run only on SAP HANA platform (database)

SAP S4 HANA Journey-

SAP Old Architecture-

Three tier architecture –

1) Presentation Layer- Software components specialize in interacting with end user and known as Client layer. In SAP user interaction purpose we use GUI

2) Application Layer-Software components that specialize in processing business applications and known as basic layer where all programs are executed and act as communicator between presentation and database layer.

3) Database layer- Software components that specialize in storage and retrieval of data like fast and large hard drives.

SAP S4 HANA Architecture-

SAP S4 HANA 1809 – The Intelligent ERP-

SAP provides the largest and most global network of digitally connected customers, suppliers and other partners to help businesses collaborate more efficiently, organize and adapt resources more quickly, and innovate processes and business models.

Ariba- Ariba is the largest business commerce network and combines industry-leading cloud-based applications with Internet-based trading community.

Concur-Concur is corporate Travel Booking tool helps you manage the travel booking process from beginning to end.

Fieldglass- Fieldglass provides a cloud-based Vendor Management System (VMS) that allows organizations to better procure, manage and optimize their global flexible workforces.

Successfactors- Helps to manage HR Functions in the cloud environment.

IBP- IBP is real time planning solution for demand , sales and operations with analytical dashboard.

DMI (Digital Manufacturing Insights) – It is centralized, cloud based and data driven manufacturing performance manager.

IPD ( Intelligent Product Design)- Solution for product life cycle management.

SAP TM Evolution-

SAP TM Architecture-

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1 Comment

Rajesh Sharma
Rajesh Sharma
Nov 29, 2020

Very nice explaination

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