Now accepting guest editorial from SAP, Oracle, Workday and ServiceNow practitioners.Pitch a guide
The Sign-Off Table

Lesson 3 of 5

Analytics placement

9 min

Listen to this lesson

0:00 / 7:37

Every SAP program argues about where reports should run. Put everything in S/4HANA and you risk overloading the transactional system and missing non-SAP data. Put everything in a warehouse and operational users wait for loads and reconcile two versions of the truth. The architect's job is to place each analytical need where it fits best, and to make that placement deliberate.

Embedded analytics in S/4HANA

SAP describes embedded analytics in S/4HANA in three layers: the SAP HANA database holding the business data, a virtual data model built from Core Data Services (CDS) views, and SAP Fiori analytical apps on top. Analytical queries built on CDS views feed multidimensional reports, KPIs and SAP Analytics Cloud stories through a live connection. Because the data is read where it is created, embedded analytics is real-time and uses the system's own authorizations.

Fiori analytical apps and KPIsAnalytical list pages, multidimensional reports, Smart Business KPIs, SAC stories on live data
Analytical queriesDimensions, measures, filters and parameters defined on CDS cube views
Virtual data model (CDS views)SAP-delivered and custom CDS views that give business meaning to tables
SAP HANA databaseThe transactional data itself, read in real time
The embedded analytics stack in SAP S/4HANA, as SAP's learning material describes it.
The Sign-Off Table · thesignofftable.com/academy/sap-arc-301

The data platform

A separate analytics platform earns its place when data comes from many systems, when history must be kept beyond what the operational system holds, when data must be harmonized across sources, or when heavy analysis would compete with transactions. SAP's offering here centers on SAP Business Data Cloud, which brings together SAP Datasphere (described by SAP as a business data fabric for integrating, modeling and distributing data) and SAP Analytics Cloud, with the concept of data products: packaged, governed, reusable data sets owned by a domain team.

Data moves from S/4HANA to the platform through extraction-enabled CDS views and replication. SAP Datasphere's documentation lists, per SAP S/4HANA release including 2025, the SAP Notes that must be applied before replication flows can use an S/4HANA system as a source. That is a typical architecture dependency: the analytics design creates technical prerequisites in the ERP system that Basis must plan.

Replicating S/4HANA data to SAP Datasphere creates prerequisites in the source system that Basis must plan.
The Sign-Off Table · thesignofftable.com/academy/sap-arc-301
NeedEmbedded in S/4HANAData platform
Open sales orders at Detroit, right nowBest fit: real time, same authorizationsLags behind the source
Five-year warranty trends across ERP, MES and portalLimited: only S/4HANA dataBest fit: history and multiple sources
Daily credit exposure for Great Lakes Fleet ServicesBest fit: operational, currentPossible but adds latency
Group margin including Alternadores before and after acquisitionPartial: only post-load data in company code 1910Best fit: harmonizes legacy history with S/4HANA
Ad hoc data science on large volumesRisk of load on the transactional systemBest fit
Placing analytical needs. Most landscapes need both.
The Sign-Off Table · thesignofftable.com/academy/sap-arc-301

A placement rule set

  • Operational, real-time and single-system → embedded analytics in S/4HANA.
  • Cross-system, historical, harmonized or heavy → the data platform.
  • Planning that writes back plans → the analytics platform's planning functions, with clear ownership of plan data.
  • Never build a second copy of an operational report in the warehouse "just in case"; two versions of the same KPI will disagree.
  • For each KPI, name one authoritative definition and one place it is calculated.
Place each analytical need by asking whether it is operational and single-system, or cross-system, historical and heavy.
The Sign-Off Table · thesignofftable.com/academy/sap-arc-301

What would you do?

Dan wants a daily dashboard of open AR by customer for company codes 1710, 1810 and 1910, plus a three-year trend that includes Alternadores' legacy history. Where should each part live?

Key points
  • Embedded analytics: HANA, CDS virtual data model, analytical queries and Fiori apps; real time and same authorizations.
  • A data platform fits cross-system, historical, harmonized or heavy analytics.
  • Replication from S/4HANA creates prerequisites in the source system.
  • One definition and one calculation place per KPI; reconcile to the source.

Check your understanding · not graded

Lesson check

  1. 1. Embedded analytics in S/4HANA is best for:

  2. 2. What forms the virtual data model in S/4HANA embedded analytics?

  3. 3. Which need most clearly belongs in a separate data platform?

  4. 4. Why name one calculation place per KPI?