Michael Lamade, Global Head S/4HANA Industry Program, SAP SE

Heidelberg, October 19 – 20, 2017

BE SMARTER – TAKE IT TO A NEW LEVEL

CUSTOMER

Michael Lamade, SAP

October, 2017

SAP S/4HANA 1709 updateStrategy and Roadmap for your Digital Transformation

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Legal Disclaimer

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future developments, products and or platforms directions and functionality are all subject to change and may be changed

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obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either

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no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct

or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ

materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which

speak only as of their dates, and they should not be relied upon in making purchasing decisions.

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at anytime for any reason without notice. This document is

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1992 ERP vs. 2017 S/4HANA

Driving Assistance Package

Blind Spot Assist

Active Lane Keeping Assist

Drive Pilot

Head-up-Display

Navigation-Package

Memory-Package

Connectivity-Package

Parking Package with 360° camera

. . .

“e” as after-thought vs. engineered ground-up

Cloud

Simulation

Predictive

Machine Learning

Blockchain

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grown duplication – continuous cleanup – governance - auto consolidate - 360° access

historic no-touch/keep lights on – legal updates – contin. innovation – strategic re-invent

extracts - list reports – dashboards for c-level / key user – realtime - simulation - prediction

old apps disconnected - data transfer – embedded in core - standard API - flexible cloud

phone – learned tx. - cockpits – handheld - KPI’s - networks – intuitive - digital assistant

manual entry - static upload - IoT devices - data mapping & mining - machine learning

Typical Innovation grade

Master Data

Analytics

Core Processes

Data Automation

People Productivity

LoB specificApps

Business pain: Strategic challenges for corporate IT landscapes

IT Layers

✓ CoPilot✓ Business Networks✓ Insight-2-Action

✓ Solution Overview Pages, KPI’s ✓ Visualization & Simulation✓ Machine Learning / Prediction

✓ Industries inside✓ One MRP/Integrated PPDS✓ Advanced ATP & VC✓ Embedded WM & TM

✓ Lean master data✓ 360° cockpits✓ Quick search, track & trace✓ Smart tagging

✓ SAP Leonardo✓ Native HANA capabilities

(Mapping, Mining, Search)

✓ SAP Cloud Platform✓ Standard API’s

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Landscape Simplification/ ConsolidationEnrich S/4HANA through retrofit of SAP Business Suite capabilities (technical view)

SAP S/4HANA

SALES / SERVICE

SAP S/4HANA

SUPPLY CHAIN

SAP S/4HANA SOURCING

& PROCUREMENT

SAP S/4HANA, on-premise edition

SRM

SAP HANA Platform

Extended

Warehouse

Management

Track & Trace

Transportation

Management*

Supply Chain ExecutionSupply Chain Planning

Demand

Signal

Mgmt.

Advanced Planning & Optimizat.

Supply

Network

Collaboration

DP SNP PP/DS gATP

SAP BUSINESS

WAREHOUSE

Operational

Reporting■ Requisitioning

Ariba Cloud Solutions:■ Procure-to-Pay

■ Sourcing, Contract Mgmt.

■ Supplier Information Perf. Mgmt.

■ Operational Contract Mgmt.

Slide shows main consolidation areas – not intended to show the complete picture

■ Catalog Index

Ariba Network:■ Discovery, PO/Invoice

Collaboration, Catalog

Supplier Self Service

SAP Sourcing

Contract Lifecycle Mgmt.

Supplier Lifecycle Mgmt.

Supplier Catalog (MDM)

hybris Commerce

hybris Marketing

Fro

nt-

off

ice

Back-o

ffic

e

Marketing

Commerce (multi-channel)

CRM1)

Sales

Service

Cloud for Service2)

Cloud for Sales2)

Enterprise

Data

Warehouse

1) e.g. for existing

CRM customers

or customers with

specific use cases

2) e.g. for

customers with

Cloud preference

* planned retro-fits

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SAP Fiori 2.0 – What’s New

Me-area NotificationsWorkspace

Me-Area

Replacing former shell header menu

Shows recent activities now

Notifications

Shown in separate viewport

that opens on clicking respective icon

in shell header

Anchor bar navigation

Replacing group menu

Shell header

Revised, launching notification and

me-are viewports and Co-Pilot window.

Provides navigation menu when app is

launched by clicking on title

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Re-designed UI – across industries SAP Fiori Apps Library

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OLTP based systems

Issues & exceptions are typically identified by working down lists

of multiple table & aggregate structures – a time consuming

and error-prone process

A people centric collection of issues & exceptions via embedded analytics

and worklists in real-time on primary data to solve issues in seconds

• Resolved

• Delivered

• Billed

• Paid

OLAP +

OLTP

in SAP HANA

Use Case: Sales Order ManagementHigh volume Order-2-Cash needs too much manual attention and effort

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Experience Transformation: Sales Order Fulfillment: DEMO / VIDEO

MeasureSAP ERP with SAP GUI

Sales Order Fulfillment

with SAP Fiori

Sales Order Fulfillment

Improvement

Factor

Duration 4.15 min 2.20 min 1.9 x

Clicks 70 42 1.7 x

Number of Apps 8 2 4 x

Fields filled 14 3 4.6 x

Use real-time alerts instead of

checking yesterdays’ reports

Ensure resolution of the biggest

issues first Check impacts and act on any

issue within seconds

Sales order management with SAP S/4HANA: what you get…

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SAP S/4HANA Sales Order Fulfillment

Process Receivables

Post Incoming Payments

Payments Proposals

Manage Vendor Line Item

Clear Incoming Payments

Post General Journal Entries

Inventory Management

Produce with Real-time MRP Insights

Analyze Third Party Services

Experience Transformation with SAP Fiori UX – side by side comparison

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SAP S/4HANA 1709Innovations – Lines of Business (LoB)

FPS

2

Extended

Warehouse

Management

• Warehouse Optimization

• Advanced e-commerce

capabilities

• Delivery integration /

Change Management

• Advanced integration of

quality management

• Advanced Labor

Management

• Unplanned Returns

• Simplify integration with

Transportation

Management

Transportation

Management

• Basic Shipping with

Transportation

Management (TM)

• Harmonized master data

and customizing

• Integration of

transportation

management and

extended warehouse

management

• SAP TM integrated in

S/4HANA Enterprise

Management

• Embedded analytics for

transportation

management

EAM – Digital

Enterprise Assets

SAP Fiori app

• Respond to

Breakdown

• Role-specific EAM

overview pages

• Object Pages

Enhancements

EAM

• Report and Repair

Malfunction

• Breakdown analysis

• Legal Control (Export)

Classification

• Intrastat Processing

(Extending the existing

Intrastat functionality for

the new released

countries)

Finance

GRC

Environment,

Health & Safety

• Compliance

Management and

Emissions Reporting

• Site survey

• Simplified risk

assessment and

interdivisional reporting

• Chemical Inventory

Reporting

Quality

Management

• Manage usage

decisions in quality

management

• Manage inspection

overview for quality

technicians

• Analytics for

quantitative results

with graphics and

statistical parameters

in QM

• Provide analytical

information, such as

defects, for different

roles in QM

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SAP S/4HANA 1709Innovations – Lines of Business (LoB)

FPS

2

Foundation

Rules Framework (NW)

Foundation

• Unified Business Event

Handling (Integration with

Situation Handling),

Business Process Flow

Responsibility management

• Agent determination,

Integration with Situation

Handling

Situation Handling

• Automation process

support based on machine

learning and ranking

capabilities

Rules Framework

• Rules for SAP S4HANA -

analytical rule sets

• Rules versioning Adopt UI5

UX for operational rules

• Extend DSM to support

SAP Fiori applications

Idea - PLM

PLM

• Recipe Development - Recipe

Finder

• Visual Manufacturing Planner

• Manufacturing Change

Record

ePPM

• Project reporting

Variant Configuration

• Classification reuse user

interface component

• Embedded Analytics

leveraging configuration data

• New Variant Configuration

engine leveraging SAP

HANA capabilities

Master Data

Management

MDM = CMD + MDG

Master Data Governance (MDG)

Provide master data in corporate

quality across complete

landscapes

Central Master Data (CMD)

Master data maintenance in SAP

S/4HANA (Business Partner,

Product) to efficiently run business

processes

• Business Partner and Product

Maintenance

• Business Partner and Product

Integration

• Governance, Generic

Functions

• Master Data Consolidation

• Mass Processing

• Central Governance

Procurement

SAP Fiori Apps

• Limits, TM integration, Purchase Order

history display, Supplier category, Supplier

Evaluation and Supplier Scorecard

processing

• Enhanced Supplier Invoice processing

(limits, asset postings, multi accounting)

• Enhanced Purchase Requisition processing

(flexible workflow, limit, budget checks)

• Enhanced Scheduling Agreement and

Contract processing (multi level approvals)

• Legal Content Management

• Simplified Service procurement for Service

Entry Sheet and Service Confirmation

processing

Functional

• Enhancements to Professional Purchase

Requisition Processing

• Enhanced Invoice Exception Monitoring and

Processing

Hybris Billing

(FI-CA)

SAP Fiori apps for

• Accounts

payable/receivable

managers (FI-CA) – KPIs

for dunning run exceptions

and returns

• Accounts

payable/receivable

accountant (FI-CA) –

Manage Business Partner

Line Items

• Invoicing specialists –

Billing Plans

Improved support for digital

payments: Customer financial

integration to payment service

providers via SAP Cloud

Platform

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SAP S/4HANA 1709Innovations – Lines of Business (LoB)

FPS

2

Commodity

Management

• Extending the SAP S/4HANA

pricing with a commodity

pricing engine to allow

formula based pricing

for exchange traded

commodities in sales and

procurement processes

• Commodity Procurement

using commodity pricing

engine with purchase orders,

differential invoicing, period

end valuation

• Commodity Sales using

commodity pricing engine

SAP Commercial

Project management

• Delivery of SAP Commercial

Project Management with SAP

S/4HANA (and no longer as an

add-on) starting with release

1709, which simplifies

installation and operations

• Built-in standard configurations

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SAP S/4HANA 1709Innovations – Industries*

FPS

2

Retail / Wholesale Utilities Discrete IndustriesOil&Gas

Wholesale Fashion enablement

Order allocation

Segmentation

Retail Omnichannel

• Integration of the central promotion pricing service

into SD sales order

• SAP S/4HANA Retail Master Data integration with

SAP Hybris Commerce

• Parallel ATP run with time series with results

transferred into CAR

Merchandise management

• Enhanced material article harmonization

• In-Store Merchandising:

New SAP Fiori app for Transfer Products,

Enhancements in SAP Fiori apps Order Products

and Product Lookup

• Object pages for Product, Site and Allocation Table

• Structured articles with full products

• Support MRP areas for special processes

Wholesale

• Settlement Management enhancements

• SAP Fiori apps for budget

specialists – funds

management

• Business role for customer

service representative –

transaction management

including new SAP Fiori

apps

• SAP Fiori app for utilities

meter reading and billing

• Analysis of Master and

Transaction data

• Cloud for Customer

Integration

Automotive

• Vehicle search with

Enterprise Search on

SAP HANA

Downstream Innovations:

• Supply Chain Visualization

• TSW Planning & Analytics,

Ticketing

• Physical Inventory Data

Capture & Processing

• IS-Oil Commodity

Management Integration

Upstream Innovations:

• PRA / Upstream

Operations Management

Integration

Public Sector

* This is the current state of planning and may be changed by SAP at any time without notice.

focus this session

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SAP S/4HANA 1709Innovations – Industries*

FPS

2

Mill Products Banking Aerospace & Defense

• Combined order

scheduling with

embedded production

planning and detailed

scheduling (PPDS)

• SAP Loans

Management for

Banking for use with

SAP S/4HANA –

enterprise services

in the area of "roll

over“, "deferral"

and "capitalization

of overdue items”

• Core Capabilities

and GPD (Grouping,

Pegging and

Distribution) & MIGO

(Goods Movement)

Adoption

Insurance

• SAP Fiori app

providing an

overview page for

claims supervisors

• SAP Fiori app

providing first

notification of loss

Media

• Product Master Hierarchy

Based on Classification

• With the Product Master

app, you can view/filter the

media product hierarchy,

and navigate to product

master details to maintain

the hierarchy.

Agriculture

• Industry to Core:

First release of SAP

Agricultural Contract

Management (SAP ACM)

in SAP S/4HANA

* This is the current state of planning and may be changed by SAP at any time without notice.

focus this session

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SAP S/4HANA 1709Innovations – Industries*

FPS

2

Consumer Products

• SAP Catch Weight

Management (CWM)

enablement for SAP

S/4HANA. Available for

system Conversion

projects **

• Direct Store Delivery

(Backend) in compatibility

scope***

• Migration Tools for CWM

(SAP ERP to SAP

S/4HANA 1709)

* This is the current state of planning and may be changed by SAP at any time without notice

** Available since SAP S/4HANA 1610 FPS01 for New Implementation projects

*** Available since SAP S/4HANA 1610 FPS02

focus this session

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SAP S/4HANA 1610Manage all parts properly

Projects

OptimizationsCustom Code Refactoring

Modification

ClearingSyntax

CorrectionsCustom Code

Optimizations

HANA Optimization

Technical & Methodology

Changes

CDSVirtual

Data

ModelsFIORIRole based / exception

based user experience

New Customer/Partner

Development

Framework

OLAP&OLTP

Principle of ONE,

Simplified Functionality

Relevant for New Install and System Conversion

Relevant primarily for System Conversion

Compatibility

Released

Add on’s

Released

Industry

Solutions

Transition

Installation &

Landscape

Management

System conversion

activities & SUM

Database

Migration &

Unicode

Simplification

database

Deployment

Options

Cloud

Editions

On Premise

Edition

X

X

Functional Scope

S/4HANA Finance

S/4HANA Enterprise

Management

ERP/Suite

on HANA

Transition

Scenario

Greenfield

New implementation

Brownfield

Conversion

+ Tools, Content, Services

Change Mgmt.

Approach

Minimal

Disruption

Process

Optimization

Process

Re-Engineering

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SAP S/4HANA system conversion

Maintenance Planner

Application specific

follow-up activities

Application specific

follow-up activitiesCustom code preparation

Preparation phase Realization phase

System requirementsMaintenance

plannerPre checks

Software Update

Manager (SUM)Custom code preparation

Solution hosted in SAP Support Portal at: http://apps.support.sap.com/sap/support/mp

Simplifies landscape maintenance process to update, upgrade and install systems with

ease and efficiency

Entry via Plan for SAP S/4HANA entry tile

– Offered to ease transition to new product line

– Automatically integrates all building blocks (such as SAP Fiori)

Define changes (based on your landscape data in customer profile)

Select files (like you did in Maintenance Optimizer)

Push all required tools, archives and stack.xml to your download basket

More information:

http://help.sap.com/maintenanceplanner

http://scn.sap.com/docs/DOC-65243i

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Supporting Cross Industry in Core SAP Leonardo / IoT Integration to Cloud

Simplified Architecture

Built to ScaleFor high automation Scalable live business

Built for PeoplePeople centric accessFree text search Any device

Built for GrowthProviding In-memory Integration base for future innovation consumption

Smart Master Data

Reporting speed up to 1000x

Inventory Throughput up to 30

MRP Run up to 10 x

VC algorithm significantly faster

Embedded Transportation, CPM, PPM

Central Requisitioning

New Legal Content Management

New Migration Cockpit

Demand Driven MRP

Variant Config. & Simulation

One Single Invoice

Engineering change impact analysis

Co Pilot 1

Flexible Approval / Resp. Mgmt.

Report & Repair Malfunction Cockpit

ML: SAP Cash App

Predictive Contract Analysis

Geographical Enablement

Automotive Vehicle SearchCommodity ManagementFashion (Seasonality & Segments)Banking – Loans IntegrationCatch Weight Mgmt.Agricultural Contract Mgmt.

Product Master (synced Material, Article)

Hierarchies based on Semantic Tags

Engineering Control Center

Recipe finder

Scalable Performance

New Role based KPI’s

New Overview Pages(Sales, Quality, Procurement…)

New Insight-2-Action Cockpits(QM, Engineering, Sales, DDMRP, FCC…)

So what is the business value in S/4HANA 1709?

Smart BusinessKPI driven Business Collaboration inside

Digital Payments

Integrated Business Planning

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Where to go for more information

SAP Innovation DiscoverySAP S/4HANA Roadmap Transformation Navigator

Discover SAP S/4HANA Explore the scope

Learn more: SAP Learning Hub

SAP S/4HANA, cloud edition trial SAP S/4HANA, on-premise edition trial

Try it yourself

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❖ There’s no reason to wait – start now!

❖ SAP has a unique (“unfair”) advantage with industry boundaries blurring –

retrofitted industry add-on’s allow customer to pick and chose

❖ Tell the landscape simplification story

Self service procurement, PP/DS, ATP, EWM, MDG, TM, CRM, … part of the S/4HANA platform

❖ Tell the S/4HANA+ story (SAP Leonardo, hybris, SAP Cloud Platform extensions, …)

Key Take away’s / Learnings / Observations

Thank you.

Contact information:

michael.lamade@sap.com

+49 160 3603219

AGENDAFRIDAY, OCTOBER 20, 2017

Auditorium

KELLOGG‘S ASIA PACIFIC: SAP JOURNEY TO AWS CLOUD

Speaker: Amit Shah, IT AP, Kellogg Company

Moderator: Ralf Mehnert-Meland, President, SNP

Coffee break and exhibition16:00 – 16:15

16:15 – 17:00