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With the launch of SAP S/4HANA Releases 1608/1610 and following releases the use-cases for analytics have changes dramatically. The used technology has shifted and the positioning with other specialized analytical solutions had to be adapted. What happened?

Analytics finally returned into the core with SAP S/4HANA

In SAP S/4HANA the split of reporting and transactions has been closed and new hybrid built-in applications became possible. For example transactions for purchasing now give contextualized real-time information to make the best supplier decision. Not enough, recently these use-cases were enhanced with predictive and machine learning capabilities, providing intelligent decision support. Higher transparency, accuracy and predictability allow decision making at higher efficiency and quality.

Moreover with the availablity of personalized KPI information already on the SAP Fiori Launchpad the individual user gets latest information about the business and the details behind this in configurable and personalizable drill downs or preconfigured applications. SAP Fiori Smart Templates like the Overview Pages come with preselected dashboard-style information to round up the view of the Business User and the areas she or he can influence this. Colour-coding guides to areas to dig in and lead to either classic or hybrid transactions. The latter can make use of the Analytical List Pages which combine KPI’s, related reporting data to pick and choose the data set a transaction should be processed with AND the transaction itself. This includes simulation of data and function executions to post the data.

Picture 1: Three simple steps from KPI to active transactional processing.

Picture 2: Example for SAP Fiori Analytical List Page “Event-Based Revenue Recognition”.

The Purpose of SAP BW

So the provocant question is: What is the purpose of SAP BW or Data Warehousing in general? Is it still necessary? In my last blog I have been proposing that The end of SAP Business Warehouse in the context of SAP S/4HANA is not in sight! This statement does not change. Data Warehousing and Embedded Analytics are serving very different use-cases. And the fact that SAP BW is SAP’s standard solution for Enterprise Data Warehousing has not changed. End of the 1990’s, SAP BW was used as a reporting engine for all matters including the operational reporting piece. With the power of SAP HANA as a database and the usage of ABAP-based Core Data Services technology the positioning has changed and an integration is very well possible (see also Ulrich Christ’s blog on ABAP CDS in SAP BW, or Matthias Kretschmer’s blog Unified Solution – SAP S/4HANA Embedded Analytics & SAP Business Warehouse powered by SAP HANA!).


With the introduction of SAP BW/4HANA SAP strengthens this message, introducing a new solution, highly optimized for SAP HANA, open to any data source, serving as the new standard for EDW and as a great Big Data data hub. So the portfolio is rounded up with SAP HANA being the common platform, SAP S/4HANA serving Embedded Analytics and SAP BW/4HANA serving as the Platform and Application for Strategic Analytics. Overarched by SAP Analytics Solutions which serve as the perfect fit for (not only) visualizing all data sources providing strong Business Intelligence capabilities.

The use cases of SAP S/4HANA

The central use case is the combination of Analytics and Transactions in the environment of one SAP S/4HANA system. The data is operational, the availability real-time. The virtual character of the data model allows lightweight modeling with immediate reflection of structural changes due to the lack of persisted data. The models are extensible and easy reusable in different scenarios and allow the interoperability with transactional developments.

So it becomes possible to answer questions like:

“How to get the very latest contextual information while I am in my transaction?”
“Which transactions and areas should I prioritize?”
“I am in SAP S/4HANA cloud! I cannot easily deploy a Business Warehouse!”
“I need the latest data structure changes reflected without a lengthy project!”

The use cases of SAP BW/4HANA

As an Enterprise Data Warehouse SAP BW/4HANA consolidates data across the entire enterprise
using a standardized data model to support decision making. By defining common semantics all data values get harmonized and the result is a ‘single version of truth’.

To provide this, a single, comprehensive source of current and historical information needs to be established which implicates a redundant (aggregated and harmonized) persistence of data.

So it becomes possible to answer questions like:

“How to get an overview of my entire business?”
“How do I compare results from different sources?”

The mixed use case

By mixing the use cases for Embedded and Strategic Analytics, the full range of either real-time and fine granular data to high level and multiple source data can be realized. Both concepts of Enterprise Data Warehousing and real-time analytics can be merged, reports and analyses being mashed up and reported in a single report, dashboard or other visulization.

Picture 3: Analytics in the context of SAP S/4HANA – the complete portfolio

Making use of the integration capabilities of SAP BW/4HANA, enabled by the virtualization functionality, real-time operational data can be merged and visualized using SAP BW/4HANA standard tools and functionality.

This way a combination of embedded analytics and EDW cases and data can be created by an accelerated inclusion of SAP S/4HANA data into SAP BW/4HANA

So it becomes possible to answer questions like:

“How do I enhance the latest real-time data with the ability to store snapshots, display external hierarchies etc.?”
“How do I enhance global reports with the latest data coming from my SAP S/4HANA system?”

The power of integration

Leveraging SAP BW/4HANA you can natively integrate the embedded analytics models and data in SAP S/4HANA with those of an EDW, e.g. to compare real-time actuals with historical snapshots, planning results (from BPC), or external data. To see how this is established, refer to the following blogs: Unified Solution, ABAP CDS in SAP BW and How-to-Guide for further details.

SAP BW/4HANA is the innovation platform for EDW, although integration is also already possible with SAP Business Warehouse powered by SAP HANA. All new enhancements regarding the integration of SAP S/4HANA and SAP BW will be implemented only in SAP BW/4HANA. Possible integration enhancements being currently discussed are

  • new extraction models using Core Data Services (CDS for full and delta extraction) to achieve meta data consistency
  • automatic data model alignment (e.g. oODS generation) to allow semi-automated integration setup

What about Embedded BW in SAP S/4HANA?

Since the release of SAP NetWeaver 7.0, SAP ERP systems automatically include SAP BW. The SAP BW technology that exists inside such an ERP system is called ‘Embedded BW’. This embedded functionality is used to support certain business processes in the SAP Business Suite and in SAP S/4HANA, e.g. integrated financial planning processes in SAP S/4HANA (aka BPC Optimized).

The Embedded BW is not recommended for building an Enterprise Data Warehouse, considering multiple SAP Applications on SAP HANA in productive environments (see in the SAP Community blog and in SAP note 1661202). It is common best practice to keep the amount of data persisted in the Embedded BW not to exceed 20% of the overall data volume of the system.

The version of BW used in the embedded scenario is SAP BW 7.5 (BW on HANA) – Although it is a different codeline than the BW/4HANA (and there are currently no plans to change this approach), it receives selected features from it, in particular the pushdown of certain calculations to the SAP HANA database, thus significantly improving performance of embedded analytics.


As depicted, SAP S/4HANA has changed the paradigms of Analytics in SAP’s ERP world drastically. With the functionality of SAP S/4HANA embedded analytics, it’s virtual data models, tools to consume data and enhance the structures it allows to either report on operational data real-time. It is also possible to run Analytics inside of Transactions and integrate Predictive and Machine Learning capabilities.

SAP BW/4HANA is SAP‘s strategic solution for Enterprise Data Warehousing (EDW). With the existence of Analytical functionality like SAP S/4HANA embedded analytics, this does not mean that the use case of an EDW is redundant! For those environments where only local data is needed and operational reporting is sufficient, this might be true but in any case where data from multiple sides needs to be collected, merged and harmonized, the existence of a new data persistency and functionality to facilitate this is required.

Both solutions, SAP S/4HANA and SAP BW/4HANA complement each other and can be fully integrated, to realize a combination of embedded analytics and EDW use cases.


With best regards,

Jürgen Butsmann

Head Analytical Solutions, Global Business Development SAP S/4HANA


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  1. Adriaan Fourie

    Hi Jeurgen

    Although there may be many discussion on whether you should,  can you confirm based on the what you said above:

    “The version of BW used in the embedded scenario is SAP BW 7.5 (BW on HANA) – Although it is a different codeline than the BW/4HANA (and there are currently no plans to change this approach), it receives selected features from it…”

    whether POSDM/PIPE can be used on the Embedded S/4HANA BW scenario.

    Kind Regards,


    1. Juergen Butsmann Post author

      Hi Adriaan,

      I am not familiar with POSDM in particular but if it runs on a BW 7.5 it is possible in an embedded BW.

      Whether it is recommended, useful etc. I cannot judge. Please elaborate.



  2. Rahaman Shaik

    Hi Juergen,


    Thanks for the clear blog.


    I can use SDI/SDA and smart data quality to connect to different different sources and get virtual data as well as persistenet data into S/4 hana or any native HANA system.


    What is that differentiate BW4HANA or any datawarehouse from SDI/SDA technology other than having a separate database


    Thanks & best regards,

    1. Juergen Butsmann Post author

      Hi Rahaman,

      first of, sorry for the late reply!

      Second: We are currently not pushing SDA/SDI integration of the SQL views of our SAP S/4HANA embedded analytics data model to ANYWHERE (actually note 2511210 would describe even a hard restriction, see also “Zugriffe auf von ABAP verwaltete Datenbankobjekte“). Why: because the data you would read from these SQL statements is incomplete and cannot be interpreted.

      Third: We are planning to make an exception for SAP BW here. Why: because this is the only solution we are shipping Business Content which helps interpreting the objects. And this makes this BW system (SAP BW/4HANA) so unique for SAP S/4HANA.




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