SAP S/4HANA

What it is

SAP S/4HANA is enterprise resource planning (ERP) software: the system that large organisations use to run finance, procurement, manufacturing, logistics, sales and other core processes. SAP, based in Walldorf, Baden-Württemberg, launched it on 3 February 2015. It succeeds the company's earlier ERP generations, including SAP R/3 and SAP ERP, and is available on premises and as a cloud service.

How it works

S/4HANA is designed for SAP HANA, an in-memory database that keeps data in main memory rather than on disk. This allows transactions and analytics to run on the same data at high speed, so companies can report on their operations in real time instead of waiting for overnight batch processes. SAP also simplified the data model compared with its earlier systems, removing many aggregate and index tables. Users work through a browser-based interface, and the system is increasingly delivered with embedded analytics and AI features.

Why it stands out

ERP systems are the backbone of the global economy, and SAP is one of the leading suppliers. Its software records orders, invoices, inventories and payroll for many of the world's largest companies. The move from older systems to S/4HANA is one of the largest IT programmes in the corporate world, because SAP has set end dates for mainstream maintenance of its previous ERP generation. For a German software company to set the standard in such a critical field is unusual in an industry dominated by the United States.

Where you meet it

You rarely see S/4HANA directly, but you interact with it constantly: when you order a product, receive an invoice or are paid by a large employer, there is a good chance an SAP system processed the transaction. Finance, procurement and supply chain teams use it daily.