With the ongoing wave of SAP S/4HANA implementations, many organizations are rethinking their data and analytics portfolios. At Etlia Data Engineering, we frequently help businesses navigate these decisions. When it comes to analytics with SAP S/4HANA, the choices often resemble a 1X2 football bet. Here’s a short practical breakdown of the choices:
1: All-in on SAP (Pure SAP)
Choosing “1” means relying entirely on SAP’s built-in tools like Datasphere and SAP Analytics Cloud (SAC).
Pros:
– Seamless integration across SAP systems with optimized performance
– Real-time insights and SAP’s own functionalities (e.g. AI applications and planning) tied to business processes
– Simplified vendor management with a single tech stack
Cons:
– Limited flexibility
– Dependence on SAP’s offering and innovation timeline
– Scarcity of SAP analytics experts
This option is ideal for businesses prioritizing simplicity and full integration with SAP ERP.
X: The hybrid play
The “X” approach combines SAP tools with external platforms like Azure and Databricks, blending the best of both worlds.
Pros:
– Flexibility and scalability
– Access to advanced AI and machine learning capabilities
– Retains some SAP-native advantages
Cons:
– Risk of data silos and duplication
– Complex governance and skill requirements
– Higher operational complexity and TCO
This hybrid model works best for organizations seeking flexibility while maintaining ties to SAP ERP. This is the most complex scenario with the highest total cost of ownership (TCO), so it’s essential to carefully assess the business case to justify the additional investment. Be sure to identify the specific reasons and value drivers that make this approach the right choice for your organization.
2: External Data Tools and Platforms (Non-SAP)
Selecting “2” involves moving all analytics to external platforms such as Azure, AWS, Snowflake, or Databricks.
Pros:
– Unmatched scalability, flexibility, and customization
– Wide support for cutting-edge tools
– Independence from SAP’s constraints
Cons:
– Greater difficulty integrating with SAP ERP
– Higher management overhead for cross-platform data
– Dependence on non-SAP experts
This option suits organizations focused on top-tier analytics and innovation, even if it means operating outside the SAP ecosystem.
Key considerations for your analytics strategy on top of S/4 HANA
1. Align analytics to business needs
– If seamless process integration and simplicity are priorities, SAP-native solutions are a strong starting point.
– For advanced analytics or scalability, consider hybrid or external approaches.
2. Evaluate SAP’s analytics offering
For organizations already committed to SAP S/4HANA, it’s logical to start with SAP’s integrated tools like Datasphere and SAC. SAP is also investing heavily in developing advanced business AI capabilities that integrate seamlessly with SAP’s own tech stack. SAP data solutions are designed to function together with S/4HANA simplifying deployment and accelerating ROI.
3. Don’t overlook Best-of-Breed solutions
While SAP’s analytics tools are rapidly maturing, platforms like Microsoft (Azure, Fabric), AWS, Databricks, and Snowflake may provide more advanced AI and ML capabilities. Ensure you have a robust approach for any SAP data extraction e.g. by using SAP Datasphere and be aware of potential challenges and limitations when integrating non-SAP solutions with S/4HANA such as restricted external data extraction (e.g. SAP Note 3255746).
The winning strategy for SAP S/4HANA analytics
The choice between SAP-native, hybrid, and external solutions depends on your organization’s infrastructure, data strategy, and goals. Start by evaluating SAP’s analytics tools, as they’re optimized for S/4HANA. For advanced functionality or flexibility, explore hybrid or non-SAP options.
Stay tuned for upcoming blogs, where we’ll dive deeper into each scenario to help you make informed decisions.
Interested in learning more or discussing your specific needs? Book a meeting with us today!