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SAP S/4HANA Analytics Architecture Options

Table of Contents
Embedded Analytics: What is Available Out of the Box?...................................................................... 2
Reporting Options: Strategic vs. Operational ...................................................................................... 2
In which Cases do we Need SAP BW? .................................................................................................... 3
Exposing SAP S/4HANA Data, CDS Views .............................................................................................. 3
How to Handle Data from Legacy ERP and Data Warehouses .............................................................. 4
EPM Options on Top of SAP S/4HANA ................................................................................................... 4
Non-SAP Analytics Options: Power BI, Tableau, Anaplan ..................................................................... 5
Possible Analytics Architecture ............................................................................................................ 5
Final Words ........................................................................................................................................... 6

SAP S/4HANA, a modern ERP suite from SAP can be deployed either on premises or in the cloud (SAP
S/4HANA cloud). Analytics is one of the key components for any modern organization, and those
implementing SAP S/4HANA face multiple architectural options. There is certain specifics for analytics on
top of SAP S/4HANA cloud. This article reviews analytics options for SAP S/4HANA on premises only.

Source: SAP

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When talking about the SAP Analytics offering, it is important to know that the “enterprise analytics”
used in strategic reporting and planning are not competing with the “embedded analytics” of SAP
S/4HANA used in operational reporting. Both offerings address different use cases and complement
each other very well.

Embedded Analytics: What is Available Out of the Box?

SAP S/4HANA Embedded analytics comes with a lot of predefined analytics apps based on Fiori and on
SAP Analytics Cloud. For creating own KPIs, reports, dashboards SAP S/4HANA provides tools for the
role of the “Analytics Specialist”. The analytical models are implemented in the SAP S/4HANA Virtual
Data Models via CDS views. The virtual models provide real-time access to the transactional and master
data, and therefore need no data replication. Obviously, Embedded Analytics works only on the data
that is currently available in the SAP S/4HANA system.
There are over 42K CDS views available in SAP S4/HANA out of the box. It is recommended to leverage
those prior to developing anything new.
Where can we see all apps and CDS views available in S4 Embedded Analytics?
• SAP S/4HANA CDS views list (SAP Help)

• Fiori Apps Library (all apps available for analytics that you can review by Line of Business,
Roles, Application Components, etc.)

Reporting Options: Strategic vs. Operational

Analytic applications can be delivered via the following popular SAP Analytics front-ends:
1. SAP Fiori apps (S4 operational reports)
2. SAP Analytics Cloud (SAC) – from operational to strategic
3. SAP Analysis for Office (AFO) - usually to be used in operational and tactical reporting.

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In which Cases do we Need SAP BW?

There are plenty of use cases for having an Enterprise Data Warehousing Platform (EDW) in large
organizations. SAP BW/4HANA is usually the most suitable EDW platform for SAP oriented organizations
or those targeting to implement SAP S/4HANA ERP. The following table summarizes some of the use
cases for choosing the right platform for analytics:

Subject Area Recommended Platform

KPIs based on operational S4 data S4 Embedded

Integrate data from multiple sources or 3rd party solutions BW4

Real Time access to S4 data is required S4 Embedded or Virtual Model

in BW4

Document/line item details are needed Either S4 Embedded or BW4

Historical data (more than 3 years) for long term trend analysis BW4

Data cleansing/harmonization is needed prior to reporting BW4

Time-dependent master data BW4

Need to create ”data snapshots” from time to time BW4

KPIs with complex calculations beyond + - * / BW4

Business planning capabilities BPC/ SAC Planning

Exposing SAP S/4HANA Data, CDS Views

ABAP Core Data Services (CDS) Views allow creation of complex views which exceed the capabilities of
database views. CDS views can be used for operational reporting/analytics, as well as for data
extractions out of SAP S/4HANA.
Besides their role in the ABAP Programming Language, CDS Views are the technology behind the virtual
data model of SAP S/4HANA Analytics. With CDS views data models are defined and consumed on the
database server rather than on the application server.
In the SAP S/4HANA system CDS based extraction is handled by the Operational Data Provisioning (ODP)

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framework, the context is called ODP – ABAP CDS Views (ODP_CDS).

ABAP CDS views can also be used within an SAP BW/4HANA context for data extraction:
- Scenario 1 : Direct access to a CDS view from BW (Using Open ODS Views)
- Scenario 2 : Delta extraction from a CDS view to BW

Source: SAP
Useful links:
• How to use ABAP CDS for Data Provisioning in BW
• CDS views: How To use in BW contexts

How to Handle Data from Legacy ERP and Data Warehouses

It is common that legacy applications, ERP systems and data warehouses coexist together with the SAP
Analytics landscape for a long period of time. In such scenarios it is important to address topics of data
harmonization, source of truth, data latency, performance of analytics applications. For this purpose
data integration within SAP landscape may be necessary, which may involve master data mapping,
history loads, and an overall effort related to data governance. Data integration from legacy/ non-SAP
sources may be either virtual or persistent using SAP BW/4HANA and/or SDWC.

EPM Options on Top of SAP S/4HANA

There are multiple options available for SAP S/4HANA in terms of Enterprise Performance Management
(EPM). EPM generally includes business planning and consolidation applications. SAP BPC Optimized for
S4/HANA is one of the options to consider for business planning. SAP S4/HANA Group reporting is an
option for financial results consolidation.
However, in cases when SAP BW/4HANA is used as a main data warehousing platform containing data
from more than just SAP S/4HANA ERP the approach can be different. SAP BPC on top of SAP BW4 can
be considered for both planning and consolidation. And in some cases SAC Planning can be configured
for specific business planning scenarios without involving SAP BPC.
Useful link:
• Demystifying a Hybrid EPM Solution from SAP: SAC Planning on top of SAP BPC.

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Non-SAP Analytics Options: Power BI, Tableau, Anaplan

Some organizations consider using non-SAP BI tools on top of SAP S/4HANA or SAP BW/4HANA. It can be
due to enhanced inhouse expertise in specific technologies, costs, user preferences, capabilities, vendor
relationships, etc. Even though SAP can technically connect to most non-SAP tools, one has to keep in
mind challenges and limitations associated with this approach.
For non-SAP BI frontends data integration may require a substantial effort. Specific SAP functionality
that may be essential for positive user experience usually is not directly supported by other vendors.
This may include master data hierarchies, BW query structures, currency conversion, customer exit
input variables, units of measure, end-user language settings, authorizations, etc. With non-SAP EPM
tools usually the only possible connectivity is to design import/export interfaces for actuals and
plan/forecast datasets. This may work in certain business planning scenarios, however, very likely will be
complex and not super agile.

Useful links:
• When Does it Make Sense Exposing SAP BW/4HANA Models to Power BI
• A Quick Guide for Connecting Non-SAP Frontends to SAP HANA Applications

Possible Analytics Architecture

Below is an example of a possible system landscape to address analytical needs of an organization
implementing SAP S/4HANA on premises. SAP BW/4HANA box together with SAP BPC embedded cover
both reporting and planning requirements, as well as activities related to financial consolidation. With
SAP BW/4HANA both operational and strategic reporting needs are addressed, involving datasets from
non-SAP sources, harmonized views and historical data.
At the same time operational analytics is available via standard SAP analytics frontends. SAP S/4HANA
data is exposed via CDS views to either Fiori apps, SAP Analytics Cloud (SAC) applications, or AFO
workbooks.

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Final Words
When an organization starts an SAP S/4HANA journey business analytics requirements may not be clear
and technical options for analytics may vary. An overall approach should consider SAP S/4HANA
embedded analytics for operational reporting, SAP BW/4HANA as an enterprise data warehousing
platform together with SAP BPC for EPM applications. And on top SAP Analytics Cloud (SAC) together
with MS Analysis for Office (AFO) can serve as powerful end-user frontends providing insights to both
operational and strategic reports, as well as EPM applications.

Sergei is an experienced leader in Business Analytics and Enterprise Performance

Management. He has graduated with a degree in Applied Mathematics and an MBA
in International Business Management. Having worked across a broad range of
industries including retail, finance, insurance, FMCG and energy, he knows how to
deliver successful consulting projects to his clients. Sergei believes that modern
Data Analytics technologies are key for succeeding in challenging business
environment and staying ahead of competition. He is excited about helping his customers to excel in this
domain. You may contact Sergei by email at [email protected]

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