The document discusses some key issues with traditional SAP databases like slow reporting due to complex data models, inability to close books on time due to lengthy integration and reporting processes, and high costs of operations and infrastructure. SAP S/4HANA addresses these issues by using an in-memory column-oriented database (SAP HANA) that allows for real-time analytics, simplified data models and processes like financial close, as well as front-end tools like Fiori for improved user experience and reduced training times.