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SAP S/4HANA Cloud Public Edition: A Leader in both reports for product and service-based enterprises

SAP is proud to have SAP S/4HANA Cloud Public Edition recognized as a Leader in both the 2024 Gartner® Magic Quadrant™ for Cloud ERP for Product-Centric Enterprises and 2024 Gartner® Magic Quadrant™ for Cloud ERP for Service-Centric Enterprises.

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A tale of two enterprise types

In the separate Magic Quadrant reports for product-based and service-based enterprises, Gartner observes that the Magic Quadrant for Cloud ERP for Product-Centric Enterprises helps ERP leaders in product-centric organizations evaluate cloud ERP vendors as part of a composable strategy that emphasizes core process standardization with innovation. Service-centric enterprises adopt cloud ERP applications to benefit from more structured sets of process capabilities that produce better business outcomes.

While both types of enterprises are in the market for a cloud ERP solution that automates operations, the two types of enterprises prioritize different process areas for innovation and optimization.

In its Magic Quadrant for Cloud ERP for Product-Centric Enterprises, Gartner defines process enablement with product-centric ERP solutions to include:

Supply chain planning
Procurement of product inputs
Production control
Warehousing
Distribution
Transportation logistics
Customer order intake and invoicing
Vendor invoice management
All elements of financial transaction processing and reporting

And, in its Magic Quadrant for Cloud ERP for Service-Centric Enterprises, Gartner defines process enablement with service-centric ERP solutions to include:

Financial management system (FMS) functionality, including general ledger, accounts payable (AP), accounts receivable (AR), and financial planning
Order-to-cash (O2C) functionality, ranging from configure, price, and quote (CPQ) to cash collection activities
Source-to-pay (S2P) functionality, which must cover at least e-sourcing, contract life cycle management, e-purchasing, AP invoice automation, supplier management, collaboration, and payments
Human capital management (HCM) functionality, which must cover at least administrative HR capabilities, such as core HR data management, employee life cycle transactions, and position management
Other administrative ERP functionality, to support typical service-centric activities, such as extended planning and analysis (xP&A), project management (for project-centric capabilities), service procurement, and real estate lease management

Mandatory features for cloud ERP

Gartner Magic Quadrant for Cloud ERP for Product-Centric Enterprises identifies the following must-have cloud ERP capabilities to include:

Plan supply and demand and source and procure production inputs
Manufacture products
Manage customer fulfillment and logistics

In its Magic Quadrant for Cloud ERP for Service-Centric Enterprises, Gartner identifies must-have cloud ERP capabilities to include:

Financial management system capabilities that provide visibility into an enterprise’s financial position through automation and process support for any activity that has a financial impact.
Order-to-cash (O2C) capabilities that provide the framework for the financial supply chain that supports the mission of an organization to make money by providing services to customers. O2C integrates financial and operational processes within an organization and must be robust for transactional support and analytics to coordinate enterprise operations.
Source-to-pay capabilities, including the ability to pay for and manage supply of goods, services, and people in support of the delivery of revenue-generating services. Included are e-sourcing, contract management, e-purchasing accounts payable, supplier engagement and collaboration, payments and procurement of services.
Human capital management functions that relate to administrative HR and talent management business requirements, including core HR data management, employee life cycle transactions, and position management.

Leaders Quadrant Descriptions in the Gartner Magic Quadrant Reports

Leaders Quadrant Description in Magic Quadrant for Cloud ERP for Product-Centric Enterprises

Leaders Quadrant Description in Magic Quadrant for Cloud ERP for Service-Centric Enterprises

Leaders demonstrate a market-defining vision of how ERP product-centric systems and processes can be supported and improved by moving them to the cloud.

Leaders demonstrate a market-defining vision of how service-centric ERP systems and processes can be supported and improved by moving them to the cloud.

They couple this with a clear ability to execute their vision through products, services and go-to-market strategies.

They couple this with a clear ability to execute this vision through products, services and go-to-market strategies.

They have a strong presence in the market and are growing their revenue and market share.

In the cloud ERP suite market, Leaders show a consistent ability to win deals with organizations of different sizes. They have a good depth of functionality across all areas of operational and administrative ERP.

In this market, Leaders show a consistent ability to secure deals with enterprises of different sizes and have a good depth of functionality across all areas of core financial management.

They have proof of multiple, successful deployments by customers.

They have multiple proofs of successful deployments by customers, in their home region and elsewhere.

Their systems integrator partners frequently use their offerings to support business transformation initiatives.

Their offerings are often used by SI partners to support financial transformation initiatives.

Leaders typically address a wide market audience by supporting broad market requirements. However, they may fail to meet the specific needs of vertical markets or other, more specialized segments, which might be better addressed by Niche Players in particular. They may also be too complex to deal with or too costly to be considered in less complex functional scenarios.

SAP's approach to product and service-centric cloud ERP

At SAP, we believe that SAP S/4HANA Cloud Public Edition is ideally and uniquely suited for both product and service-centric enterprises. From large and midsize manufacturers and assemblers across industries to retailers and professional services organizations, SAP S/4HANA Cloud Public Edition delivers new possibilities for both product and service-focused companies.

One cloud ERP solution for both enterprise types

SAP S/4HANA Cloud Public Edition has the operational and integration capabilities to support a diversity of business models. For example, integrated solutions for manufacturing, supply chain management, and procurement are ready to run with SAP S/4HANA Cloud Public Edition to streamline product-centric processes. And cloud ERP-integrated solutions for service delivery performance, customer satisfaction, and resource utilization streamlines service-centric processes.

Also, the in-memory processing power of SAP S/4HANA Cloud Public Edition enables real-time analysis, reporting, and monitoring for both types of enterprises. They have the scalability and flexibility to support rapid growth and adaptability without the need for significant IT infrastructure investments.

And, as part of a wider SAP technology portfolio that includes SAP Business Technology Platform and SAP Sustainability Control Tower, SAP S/4HANA Cloud Public Edition provides a foundation for customization and extensibility.

An innovation and customization roadmap across industries

SAP S/4HANA Cloud Public Edition is at the center of our strategy of embedding AI capabilities across business processes, including Joule, our AI copilot. Joule works as an insightful and fully interactive collaborator across enterprise processes and workflows, including manufacturing, supply chain management, procurement, HR, and finance.

In addition, we constantly update SAP S/4HANA Cloud Public Edition to support different product-centric and industry-specific processes, including:

Predictive replenishment in retail
Carbon accounting in sustainability
Fulfillment wave management in warehousing
Automated trade claims processing in consumer products
Order processing and quality management in manufacturing

This ensures that all kinds of businesses are able to use cutting-edge technologies like AI, machine learning, and robotic process automation to constantly improve and adapt their workflows.

A diverse, global footprint and partner ecosystem

SAP has an extensive and diverse partner ecosystem, and a strong presence across regions and countries, with specialized consulting and industry expertise to support complex integrations, transformations, migrations, and more. So, whether our customers are a small local enterprise or a global conglomerate, they run SAP S/4HANA Cloud Public Edition in the country, customizations, and language that they need.

What’s more, SAP S/4HANA Cloud Public Edition adheres to global standards for data security and regulatory compliance. This is particularly important for companies in highly regulated industries, ensuring that they can meet legal and compliance requirements without compromising operational efficiency.

SAP S/4HANA Cloud Public Edition: New possibilities for every kind of company

Product focused

Service focused

Production engineering that increases efficiency along the entire product configure-to-order process with an intuitive, tightly integrated interface

Project management that provides a full project overview with embedded analytics that track work in progress, costs, revenue, and margins in real time

Production planning in real time with predictive demand forecasts, material and resource plans, and utilization reports to avoid disruptions

Resource management that maximizes utilization with visibility over resources, teams, and projects and AI-based insights on skills, experience, and availability

Manufacturing operations that monitor production progress in real time with automated, proactive alerting for exceptions, material changes, or cancellations

Bundling that optimizes the mix of products, services, and subscriptions and automates the monitoring, issue resolution, and performance of bundles

Quality management with automatically triggered inspections and an intuitive, collaborative approach to failure mode analysis and 8D methodology

Service management that ensures timely renewals, billing, and revenue collection, as well as delivering on the right service levels at the best price

Discover the possibilities for yourself

We’re grateful to Gartner for its recognition of SAP S/4HANA Cloud Public Edition. We’re also grateful to our customers—across product and service-based enterprises—who place their trust in our cloud ERP solution to deliver new business value and better business outcomes.

Discover the possibilities for yourself, starting with the Gartner reports. Download the reports

GARTNER is a registered trademark and service mark of Gartner and Magic Quadrant is a registered trademark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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