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Author's profile photo Raghavendra Mani

2-Tier ERP for SAP S/4HANA Cloud – A catalyst for Industry 4.Now

Leverage Accelerated Technological Advancements

Amid rapidly changing times and very demanding work environments, businesses are challenged to adapt faster than ever before and accelerate technological advancement in the areas of Machine learning, IoT, predictive analytics and Intelligent enterprises. There is a huge push to embrace change and innovate in these new areas.

“3.7 Trillion USD – Value creation potential of manufacturers and suppliers implementing Industry 4.0 in 2025 – McKinsey & Company

As consumers become aware of their role in driving change towards making enterprises more flexible and intelligent, manufacturers are having to think out of the box to find a good balance between consumer demands and production feasibility. A growing trend is that more customers are opting for customized orders rather than stock orders, making major manufacturing companies question the viability of traditional make to stock processes.

On the one hand the manufacturers want to offer the consumers as much flexibility as possible and on the other hand their need for optimized processes calls for harmonization and standardization. Manufacturers must now embrace this changing business trend and build an appetite for change and work towards keeping production freeze periods as low as possible.

These of course are welcome disruptions considering the current times we live in and with the emergence of e-commerce as a big player in bringing the consumer closer to manufacturers, it has only re-emphasized this mindset.

All this throws up an interesting yet challenging scenario that is now making discrete and process manufacturers look towards technology and innovation for help.

2-Tier ERP for SAP S/4HANA Cloud as a key change driver

SAP S/4HANA is becoming a central change driver to help Intelligent Enterprises setup their connected digital core on the cloud. This opens up opportunities for mainstream businesses looking to harmonize their business processes and prepare for their journey into Industry 4.0.

SAP’s continued focus on enabling intelligent technologies like Machine Learning, IoT, Artificial Intelligence and Robotic Process Automation as a leverage can now provide businesses with the catalyst to really boost their growth trajectories and make IT-OT harmonization a reality.

Many of our customers today face the growing challenge of digital transformation. With 2-Tier ERP offered for the S/4HANA Cloud on-premise and cloud implementation, we can now guide our customers on a structured path from their current environments into a completely connected digital core. It is now time for action to move ahead and make the shift into this new mindset of a flexible, robust, and evolving business platform.

This evolution is spearheaded by 2-Tier ERP which puts many use cases in the grasp of companies and businesses today. Some of these interesting use cases are highlighted below:

  • Real-Time track and trace for connected warehouses across geographies
  • Drop shipment by subsidiaries of the intelligent factory enabled by top floor to shop floor transparency
  • Full visibility of Predictive maintenance schedules with connected assets
  • Harmonized Project control and tracking with S/4HANA Cloud for Projects

These use cases and many more can now be comprehended, and more complex ones can be tackled with the great technological backbone of S/4HANA Cloud. Customers who currently have most of their manufacturing and operational processes on S/4HANA Cloud on-premise are able to increase operational efficiencies, customer satisfaction and lower process costs due to automation of process steps and can immediately leverage the capabilities of 2-Tier ERP to move them closer to their vision of Industry 4.0.

For customers who are looking for an upgrade path or want to explore offerings on the cloud, 2-Tier ERP offers them an option where they get to keep their current S/4HANA Cloud on-premise setup intact and deploy key functions and processes into the cloud. This gives them a big head start on their cloud journey and makes their eventual move into the cloud more seamless.

As we get comfortable talking about this change in paradigm and move closer to a truly connected intelligent enterprise, we at SAP are ensuring our customers have the best processes and guidance to make this journey a smooth and successful one.

For more details about 2-Tier ERP scenarios for Industry 4.0 powered by SAP S/4HANA, stay tuned for the whitepaper releasing soon.


Further References:

Hybrid Cloud ERP – an outlook for 2Tier ERP with SAP S/4HANA Cloud

Business process in cross system Hybrid Landscape


Market Research:

Gartner Says 5.8 Billion Enterprise and Automotive IoT Endpoints Will Be in Use in 2020

New IDC Forecast Expects the Internet of Things Spending in Asia/Pacific* to Reach USD 398.6 Billion by 2023

IoT Global Forecast and Analysis, 2015-2025

Worldwide Spending on the Internet of Things Will Slow in 2020 Then Return to Double-Digit Growth

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