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SAP ECC vs. SAP ERP S/4 HANA: What is the Difference?

Dave WoodBy: Dave Wood


What is Meant by SAP Business Suite

SAP Business Suite is a group of applications that perform essential business functions. It helps manage many common business processes in various industries. SAP Business Suite supports different operations, including

What is Meant by SAP Business Suite

What Does SAP ECC Stand For?

SAP ECC, which stands for SAP ERP Central Component, is a pivotal technology in business and various industries. Originating in the 1970s, it initially emerged as a financial software package known as RF. Over the years, it has undergone significant evolution to become the first suite of applications for businesses.

In its early stages, the suite included modules such as RM/1, leading to its renaming as R/1 shortly after introduction. The subsequent version, R/2, made its debut in 1979, consolidating various enterprise functions, including logistics and supply chain management, human resources, manufacturing, and accounting.

A major milestone came with the introduction of R/3 in 1992, marking the shift to client/server technology and eliminating the need for mainframes. R/3 was versatile, supporting a range of databases and computer systems.

The most recent version of the software suite, introduced in 2004, solidified its identity as SAP ERP Central Component (ECC). Today, organizations can seamlessly use ECC as an interchangeable term with SAP ERP.

Differences Between ECC and S/4 HANA

Businesses often compare SAP ECC to SAP ERP HANA. If you are not a tech person, it might seem confusing. The web is full of contradictory answers and unclear articles. In reality, the answer is very simple.

SAP ECC refers to the ERP Central Component in the existing SAP Business Suite. The core element that incorporates business operation functions.

Difference Between ECC and S/4 HANA

ECC is the largest system element of the SAP Business Suite. SAP Business Suite can operate on any database including HANA.

The central SAP Business Suite application is ERP. The software specializes in resource planning. It includes various modules that help organizations control key business processes.

The modules are fully integrated and customizable for customers’ and industries' needs.

ERP is a general term that stands for Enterprise Resource Planning. It can be any software that covers the planning of resources in an organization. Numerous companies offer ERP software. Oracle, Salesforce, SAP, and more.

ECC is an ERP solution provided by SAP. ECC stands for ERP Central Component and ECC is a term confined to SAP only. ECC is a component of SAP's ERP software package.

The ERP suite provides the overall management and control of the functions.

ECC consists of the group of functions that businesses can perform.

One supports the functionality of another. Business Suite simplifies financial management, human resource management, sales, marketing, logistics, and supply chain management.

How can businesses benefit by using these software products?

When using ECC, businesses use an efficient software suite that will allow them to improve their ability to perform tasks such as:

What Does SAP HANA Stand For?

HANA is a database of the SAP business software suite. HANA collects information, runs analytics, and oversees transactional data. At first, HANA was a tool for managing warehousing data. It has grown into an all-in-one data managing and analytical platform.

HANA functions on-premises, on the cloud, or a hybrid system. Similar to ERP, HANA has a variety of modules, for example:

HANA helps businesses perform efficient management across all operation systems.

In 2017, SAP released S/4HANA Cloud. This new software proved to be ideal for businesses with 1.500+ employees. Larger organizations often operate on a two-tiered system. With the cloud-based version of HANA, corporations can manage a comprehensive, full business suite solution. It includes SAP ERP Central Component, S/4 HANA, and the cloud version of S/4 HANA.

S/4 HANA is full of trending tech functions. For instance, Machine Learning is now available through SAP Clea. You can now have a digital assistant called CoPilot. SAP improves and updates software non-stop. HANA is a rapidly developing part of SAP. It helps align business data with Artificial Intelligence.

What is SAP Consulting?

Business software is essential for businesses. It maximizes efficiency and organizes management tasks. ERP, ECC, and HANA are robust components of SAP Business Suite. Companies leverage their functionality to ensure their business reaches its full potential.

Are you ready to explore SAP business benefits? Now is the time to share all your thoughts with proficient consultants. Expert SAP consulting companies guide you through every step of the process. From design to deployment and customization, we are dedicated to your success.

Chetu is one of the leading enterprise software solutions providers. We leverage our 20+ years of experience to help businesses grow with the aid of leading software technologies.


Chetu, Inc. does not affect the opinion of this article. Any mention of specific names for software, companies or individuals does not constitute an endorsement from either party unless otherwise specified. All case studies and blogs are written with the full cooperation, knowledge and participation of the individuals mentioned. This blog should not be construed as legal advice.

Chetu was incorporated in 2000 and is headquartered in Florida. We deliver World-Class Software Development Solutions serving entrepreneurs to Fortune 500 clients. Our services include process and systems design, package implementation, custom development, business intelligence and reporting, systems integration, as well as testing, maintenance and support. Chetu's expertise spans across the entire IT spectrum.

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