There are various methods to improve system performance in SAP based on where the bottleneck is identified.
From a code optimization perspective, using built-in performance analysis tools such as SQL trace (ST05), Runtime Analysis (SE30), or ABAP Test Cockpit (ATC) to identify long running transactions or inefficient lines of code can be beneficial. Once identified, we can streamline the code, for example, by reducing database hits, avoiding unnecessary nested loops, or using appropriate internal tables.
Regular system monitoring using transactions like ST02 and ST06 can give insights about system health, buffer hits, swaps, memory consumption, and much more. If a system's performance is suffering due to high memory usage, it might suggest the need for tuning memory parameters or re-evaluating expensive SQL statements eating up resources.
From a database perspective, ensuring that database indexes are properly used and maintained can significantly improve access times for frequently accessed data.
Also, periodically archiving and deleting old data that is no longer required in the system can reduce data footprint and improve system performance.
Finally, employing proper hardware sizing and configuration during setup, maintaining updated patches, and staying up-to-date with SAP Notes can also contribute to an efficient, well-performing SAP system.
It should be noted that performance optimization in SAP is a continuous process and requires regular monitoring and adjustment based on the specific requirements of the business.