From the end of 2023, SAP will modernize its HCM products in the on-premises area. With the SAP Human Capital Management for SAP S/4HANA (SAP H4S4) solution, the “classic” SAP HCM landscape is integrated into the HANA world. Customers who use SAP HCM on-premise will benefit from the changeover. The new product is of particular interest to companies that are not yet fully active in the cloud.

With small steps towards the cloud

The new software is intended as a supplement to the cloud solution SAP SuccessFactors. It is intended to make it easier for SAP customers to make the gradual and, if necessary, long-term transition from on-premise products to the cloud. Biggest advantage: The new product is fully integrated into the SAP HANA Suite and already has one today Maintenance commitment from SAP until the year 2040. It has extensive functionalities in the areas of personnel time management and payroll accounting. These will not be available in the SuccessFactors modules for the foreseeable future, especially for the requirements of the German market.

SAP H4S4 is equipped with extensive standard interfaces, for example to other SAP HANA modules such as Finance & Controlling or Material Management. Hybrid scenarios that contain both on-premise components and SuccessFactors modules can also be implemented with H4S4. SAP becomes H4S4 with a reduced range of functions in one Private Cloud Edition to offer. This can be a good alternative for companies that already want to use hybrid scenarios with SuccessFactors modules.

Proven modules receive an optimized code basis

In terms of scope and flexibility, the new software will be in no way inferior to the classic SAP HCM ECC. Almost all previously available SAP HCM modules and functions are integrated into one HANA-optimized code base be available. And the most important thing: Customer extensions that have been created can continue to be used and optimized as far as possible. The possibility of new, customer-specific extensions is also fully retained. This gives on-premise customers up to 15 years to decide which HCM parts they want to transfer to the SAP cloud applications and when.

Better performance and modern UX

The new software is based on a new code string and is optimized for the use of HANA databases in terms of programming. Thus, especially when processing large amounts of data with significant performance improvements to reckon with. New Fiori apps let parts of the application shine in a modern look with tidy surfaces.

This must be taken into account when switching

First of all, the most important point in preparing for the changeover is the time planning, by when a conversion must have taken place at the latest. The following timeline provides orientation:

Graphic: SAP H4S4 availability timeline

SAP provides useful tools to make the changeover. These can be used when scoping, preparing and executing the switch to H4S4. In the course of a SAP HANA Readiness Checks It is checked which applications are used how in the company and where there is still a need for adjustment before the changeover. Based on this, the project scope and the data packages to be migrated are defined. As soon as the preparations are complete, the actual changeover will take the form of a major release change. In the course of the changeover, new contractual conditions for use must also be observed.

SAP consulting at the highest level

CONET observes the development of SAP H4S4 from the beginning and is at your disposal long-standing SAP partner with advice on the conversion and its implementation. SAP customers in the public sector are also in good hands with us: In 2022, CONET was awarded the “Partner of the Year Public Services” award for the fourth time in a row by SAP as part of the Diamond Initiative.
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Foto: Guido Wienberg

Guido Wienberg is Head of Human Capital Management at CONET Business Consultants GmbH with a focus on ERP HCM On-Premise.


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