SAP S/4HANA happens to be one of the newest and most vital components in the SAP portfolio, which consists of around 300 products and 200 cloud-based services. It is a new strategic, future-oriented enterprise resource planning (ERP) system which replaces SAP’s old ERP system. SAP S/4HANA contains various modern integrated technologies. It also comes with various advanced capabilities which allow companies to automate their business processes better and run real-time analytics.
| As per Gartner reports, SAP S/4HANA Cloud Public Edition has been identified as a leader in both reports for product and service-based enterprises |
Because of the enhanced popularity of SAP S/4HANA, a lot of companies are now migrating to the SAP S/4HANA environment. This integration can offer companies multiple benefits. It can also allow them to take their businesses to new heights. However, before you integrate with SAP S/4HANA, there are quite a few things that you need to be aware of. So, here we are going to take you through five things that you need to know before opting for S/4HANA integration:
Things to Know Before Integrating Your Business Applications with S/4HANA:
What is S/4HANA Integration? S/4HANA refers to the process of integrating S/4HANA with other applications in your environment. This allows for smooth flow of data between the various systems. |
As per Gartner, as of Q2 2024 reports, approximately 37% of SAP ECC customers worldwide had bought or subscribed to licenses for S/4HANA.
So, here are some of the most crucial aspects that you require to consider before you go for SAP S/4HANA external systems integration:
1. Clearly Define Integration Scenarios and Requirements:
There are four different S/4HANA integration scenarios. Each of these scenarios has its own particular characteristics. So, let us have a look at what these integration scenarios are:
Third-party integration:
Here, you need to take the time to identify the third-party applications and the legacy systems you want to integrate with SAP S/4HANA. It is not uncommon to underestimate the work needed or to overlook a system which can completely derail the project schedule and expose you to multiple challenges. Integrating third-party applications with SAP S/4HANA involves resolving various technical and procedural challenges.
The cloud-based applications also bring various other obstacles related to security and compliance requirements. Some of the third-party applications that are frequently integrated with SAP S/4HANA include cloud-based business applications, including CRM, non-SAP ERP solutions, Human Capital Management (HCM) systems, trading platforms, E-Commerce solutions, etc.
B2B Integration:
Now this is yet another SAP S/4HANA external systems integration scenario. It is one of the most challenging integration areas when integrating to SAP S/4HANA. A B2B integration is mostly connected to the company’s core processes and value chain, which makes the integration difficult. SAP S/4HANA also has different interface operators, and choosing the right integration pattern will play a key role in determining the success of the integration process.
| As per McKinsey’s latest B2B Pulse Survey of B2B decision-makers, 19% of respondents are already implementing gen AI use cases for B2B buying and selling. And another 23% are in the process of doing so. |
B2B integration requires a strong understanding of technical and business requirements. You also have to ensure that your mappings comply with different security and compliance requirements. However, the B2B integration to SAP S/4HANA can be a big opportunity to modernize, consolidate, and standardize your B2B integration. It will ensure that the B2B platform becomes more manageable. It will also help you reduce annual costs.
Public cloud:
Nowadays, a lot of companies are running a hybrid IT infrastructure. They mainly do so in a multi-cloud environment. This involves several public clouds or a combination of public and private clouds. This means hybrid cloud integration. In order to bring an end to it, almost all companies using SAP S/4HANA follow a multi-cloud hybrid strategy.
Integrating with the public cloud involves a hyperscale environment to create a data lake and the tools for analytics, machine learning, and artificial intelligence. Companies make use of the information hidden in the data lake every day to make insightful business decisions. The hyperscale environment is also cost-effective. It can also offer companies valuable insights.
SAP Integration:
SAP S/4HANA is a part of SAP’s enormous portfolio. It consists of a lot of other products and services as well. SAP also offers various out-of-the-box integration solutions for integrating its other applications. According to Forrester research, companies that use SAP Integration Suite saw a 345% return on investment over three years.
One of the biggest advantages of SAP customers is that they can rely on SAP’s offerings to be open to integration. This means that all of SAP’s products and services can be integrated with SAP S/4HANA services. This allows for business operations to be carried out in a smoother and effective manner.
Top 4 SAP S/4HANA Integration Scenarios:
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Identifying the right integration scenario for your business is extremely vital to the integration’s success. So, you must carefully understand your business needs and identify your integration scenario based on that.
Opt for S/4HANA Integration -> Witness 50% Increase In Business Efficiency!
2. Choose the Right Integration Technology:
There are a few major technologies that are mainly used for the SAP S/4 HANA integration process:
SAP Integration Suite:
This is SAP’s cloud native integration approach. It accommodates various modern integration scenarios, especially hybrid landscapes. It comes with a comprehensive set of services, including cloud integration, API management, open connectors, etc.
Process Orchestration:
Process orchestration is nothing but an on-prem middleware used by companies that are willing to build a strong on-premise presence. This is extremely suitable for ensuring that all your inbuilt capabilities are enhanced.
APIs (Application Programming Interfaces):
This APIs (Application Programming Interfaces) integration methods are heavily used for SAP S/4HANA API integration. This ensures that the integration gets carried out in a smooth and effective way without much hindrance.
Third-party integrations:
A lot of companies also make use of iPaaS platforms for integration. This is extremely useful in heterogeneous landscapes. It ensures that the business needs are properly fulfilled. The integration process also gets carried out smoothly.
Related Read: Difference Between SAP ECC and SAP S/4HANA
Different S/4 HANA integration setups:
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Here’s how you need to choose the right technology for S/4HANA integration with the other systems in your environment:
The integration platform should be of a hybrid model:
The platform that you choose for S/4HANA third-party integration with your business environment needs to run both on-premise as well as in a variety of clouds. This will allow the integration to fulfill your business demands. It will also minimize the associated risks and costs. If the integration platform runs from a vendor cloud, it is an iPaaS. This is the most sensible solution for integrating SAP S/4HANA in the business environment. You can also choose to go for a multi-cloud strategy and have your integration platform in a public cloud of your choice, from where you can run different applications. The companies of today are also using SAP S/4HANA API integration to bring together the systems in their environment.
You should be able to add other integrations to the SAP S/4HANA integration platform:
Implementing SAP S/4HANA external systems integration also involves integrating the rest of your environment. So, it is always better to choose your integration technology in such a way that you are able to add other integrations as well. This will provide you with a competitive edge and will also allow you to ensure that your business processes get carried out smoothly. The kind of integration technology you choose also depends on your exact integration scenario. So, that should be put into consideration as well while you make your business decisions.
Your integration solution must be available as an iPaaS:
In recent years, the iPaaS model has grown significantly in popularity, mainly for S/4HANA real-time integration. A lot of companies are opting for iPaaS integration for their business. A major reason for the popularity of iPaaS involves:
- The growing use of cloud-based applications.
- The success of APIs as a popular integration technology.
- The diverse integration needs of companies.
The various advantages of using iPaaS include:
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The biggest advantage of using an iPaaS solution is that it is managed by a provider. So, all you have to do is choose the right provider, and you will be able to ensure that your integration process gets carried out smoothly.
One such iPaaS provider that offers top-notch SAP S/4HANA integration services is APPSeCONNECT. With APPSeCONNECT’s enhanced integration solution, you can easily drive business growth and success within a short while.
Know more about APPSeCONNECT’s S/4HANA Integration! Click here!
| DID YOU KNOW: According to IDC, the worldwide enterprise applications revenue grew 12.0% in 2023 and is forecast to surpass 600 billion USD in 2028. iPaaS integration is going to play a contributing role in ensuring that the revenue generation targets are met. |
3. Establish Secure Communication Channels:
In today’s highly interconnected world, it is really important for you to maintain secure communication channels while implementing the SAP Integration Suite in your business environment. This will ensure seamless business operations and will also enhance productivity. Secure communication channels are essential to protecting data against breaches and cyber threats. It also impacts team collaboration, customer service, and overall operational efficiency.
Here’s how you can maintain secure communication channels:
- Choose the right tool: Always select the right communication tool. This will allow for seamless integration.
- Establish a clear communication protocol: This will remove discrepancies and ensure business operations get carried out seamlessly.
- Leverage automation: Automation can help streamline the communication process and also reduce manual efforts.
Here’s how you can secure communication channels
- Implement encryption:
Encryption is a vital way of securing communication channels. It ensures that vital data is accessible to authorized parties. There are two main types of encryption:
- End-to-end encryption
- Transport Layer Security (TLS)
- Use multi-factor authentication (MFA):
Multi-factor authentication adds an extra layer of security by offering users two or more verification factors to gain access to the required information.
- Educate users on security practices:
You must also ensure that the users are well aware of the various security practices. This will further allow them to ensure that the business operations get carried out in a secure way.
4. Develop and Test Integration Flows Thoroughly:
Based on the SAP data integration requirements, you need to develop the integration workflows. Make sure that the workflow development takes place in such a way that all the business requirements are fulfilled. It is also important that you implement advanced forms of technology while carrying out the workflow development process. This will ensure that your business needs are well attended to.
You must also vigorously test the integration workflows. While developing the integration workflows, you need to test them vigorously. By doing so, you can catch errors at an early stage of the integration process. This will ensure that your project timelines are maintained. You will also be able to reduce the chances of errors.
Also, it is important to make use of advanced automation tools and SAP middleware for quick integration. This will help in eliminating errors real quick. Here are a few of the important things that you need to test during the integration process:
- Verify the workflows between the modules and the integrated components.
- Identify the issue between the modules.
- Look for inconsistent data flow and mismatched data types.
- Confirm the functionality of each of the modules.
- Detect the performance bottlenecks.
- Ensure proper logging, error messages, etc.
Related Read: SAP S/4 HANA Deployment Models: On-Prem, Essentials and Extended
5. Prioritize Data Governance and Security:
One of the most crucial aspects of SAP S/4HANA integration is adhering to compliance standards and implementing advanced security features. Now here’s what data governance and security is all about:
What is data governance and security? Data governance and security involves ensuring that the data remains protected from external threats and breaches. It also involves implementing various security measures to ensure that your business processes are streamlined. |
By adhering to security and compliance measures, you will be able to ensure that your business data remains secure. You will also be able to save yourself from having to pay expensive fines. The business reputation is also going to be further enhanced. There are various industry-specific regulations that you need to follow while carrying out the integration process. It is also important that you consider geo-specific compliance requirements before proceeding with the integration.
Learn more about APPSeCONNECT’s GDPR Compliance!
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Choosing APPSeCONNECT As Your SAP S/4HANA Integration Partner:
Now you can make SAP S/4HANA integration a lot more convenient with APPSeCONNECT’s SAP S/4HANA external systems integration connectors. The connectors will connect deeply with the business applications in your environment. It will also automate the various processes to reduce errors and inefficiencies in your business platform.
APPSeCONNECT’s enhanced set of features:
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APPSeCONNECT also helps companies maintain accurate and consistent product, customer, order, inventory, and order fulfillment data across SAP S/4HANA and other application endpoints. This is mainly done through the prebuilt S/4HANA real-time integration connectors and templates.
Webinar: Accelerating Growth- Real-Time SAP S/4HANA and Zoho CRM Integration
What Makes APPSeCONNECT Stand Out?
There are a lot of iPaaS providers around who will offer you S/4HANA integration services, but here’s why APPSeCONNECT stands out:
| Feature/Aspect | APPSeCONNECT | Workato | Celigo |
| SAP Integration Capabilities | ✅ | ❌ | ⚠️ |
| Implementation Time | ✅ | ❌ | ⚠️ |
| Pricing Model | ✅ | ❌ | ⚠️ |
| SAP Expertise | ✅ | ❌ | ✅ |
| Scalability and Flexibility | ✅ | ✅ | ⚠️ |
| Customer Support | ✅ | ❌ | ✅ |
| Security & Compliance | ✅ | ❌ | ⚠️ |
With its extraordinary set of features and enhanced capabilities, APPSeCONNECT has proved itself to be a better choice as compared to its competitors like Jitterbit and Workato.
When integrating with SAP S/4HANA, Workato lacks native support for SAP’s proprietary communication protocols and data formats, which again makes APPSeCONNECT a better choice for S/4HANA integration.
Learn more about APPSeCONNECT vs Jitterbit. Click here!
APPSeCONNECT is also known for its enhanced security and compliance features.
APPSeCONNECT follows compliance features like:
- ISO 27001 certification
- SOC 2 (Type II) certification
- GDPR Compliance
- HIPAA compliance
APPSeCONNECT also implements advanced security features like:
- SSO (SAML)
- RBAC (Role-Based Access Control)
- SCIM provisioning
- 2FA (Two-Factor Authentication)
- Domain capture
APPSeCONNECT is also a popular choice among companies across UK and Europe because of its ability to navigate post-Brexit challenges. APPSeCONNECT also follows a flexible pricing model, making in an appropriate choice for companies willing to opt for S/4HANA integration.
Core S/4HANA Integration Pricing Models:
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Real-life Case Study: U.S. Tobacco was able to achieve 100% E-Commerce automation with APPSeCONNECT's SAP S/4HANA Integration solution:
About the company: U.S. Tobacco is one of the global suppliers of primary flue tobacco. The company is known for its quality and its best-in-class tobacco production methods.
The challenges met: In order to expand its operations and build itself an online presence, the company implemented WooCommerce as its E-Commerce solution and SAP S/4HANA as its ERP. Post implementation, both applications operated effectively. However, the applications operated as isolated databases, which soon began to bring new challenges for its business.
The APPSeCONNECT solution: In order to enhance operational efficiency and reduce lead time, the company implemented APPSeCONNECT’s low-code business process automation platform. This allowed seamless integration between SAP S/4HANA and WooCommerce. This helped the company increase its business efficiency by 50%. The company was also able to save an average of 60% on order processing and logistics.
Learn more about the case study by clicking here!
So, if you are willing to make the most out of S/4HANA integration across your business environment, it is high time that you reach out to the integration experts at APPSeCONNECT and avail of their services.
Frequently Asked Questions
S/4HANA may offer you multiple business benefits like real-time business insights, enhanced accessibility, and improved scalability.
SAP S/4HANA makes use of various integration technologies, like:
- APIs
- Middleware
- Third-party tools
Some of the major areas include finance, human resources, supply chain, etc.
You need to consider factors like:
- Business requirements
- Data volume
- Scalability
- Adaptability
