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September 2015

Considerations of S/4 HANA

HANA Community https://ibm.biz/s4hanacommunity

HANA Adoption Workshop Link https://ibm.biz/S1_S4_HANA_Adoption_Discovery_Workshop

External facing PoV on S/4 HANA Finance https://ibm.biz/IBM_CFO_Meets_S4_HANA_Finance

Not to be reused without prior approval from IBM

Mark Dudgeon

CoC

Global SAP CTO

[email protected]

Bery Meyerink

CoC

S/4 HANA Finance [email protected]

Gagan Reen

CoC

LSS Leader

[email protected]

Sanjay Das

Europe IoT

Analytics [email protected]

9/30/2015 2

1. Future of ERP in the era of Digital Transformation Moving to S/4 HANA ERP core is the foundation for Digital Transformation

2. The What, Why and How of S/4 HANA - TechnologyIT Considerations for S/4 HANA Adoption, including wider HANA Platform

3. The What, Why and How of S/4 HANA – FinanceThe new ERP Financial Solutions portfolio built for SAP HANA, allowing “real-real-time”

analytics at the “most granular level” across all financial dimensions

4. The future role of Analytics Moving from Operational Analytics (i.e. What happened) to Insightful Analytics (i.e.

Why did it happen) to Predictive Analytics (i.e. What will happen)

5. IBM Lab Solutions for SAP – Demos & Overview of "Boardroom of the Future“Showing the “art of the possible” for HANA Platform

HANA Adoption & Innovation Workshop

IBM Confidential

9/30/2015 3

Some of the key points addressed in the HANA Adoption Workshops

� S/4 HANA is the answer, what is the question?

� Future ERP in the era of Digital Transformation

� What is S/4 HANA? Establish baseline information for S/4 HANA

� Why is S/4 HANA Important? What are the drivers for S/4 HANA (Business & IT)?

� How to get to S/4 HANA? What are the Adoption Scenarios?

� What are the options around Cloud?

� What changes for the way we do development in the future?

S/4 HANA Key Messages

ERP in the era of Digital Transformation

1. Future ERP

9/30/2015 5

IBM‘s view of CxO challenges with move to digital transformation

5

Source: IBM IBV Customer activated enterprisehttps://www-01.ibm.com/marketing/iwm/iwm/web/signup.do?source=csuite-NA&S_PKG=ov17183

S/4 HANA - Transforming the ERP core into a Digital Enterprise Core?

� Competitive advantage will be

created trough data and

analytics, business models will

be shaped by cloud, and

individual engagement will be

powered by social

technologies in a secure

environment

�Mobile is the preferred

method of exchanging

information and services for

organizations and

professionals of all kinds

� Social Business technologies

help to understand the

individual, deepen

relationships and connect,

communicate and share

information

Business

networks

Social

networks

People

Devices

Big Data

Internet

of Things

Digitally enabled supply chain

(E2E integration, Transparency…)

Customer centricity and individualisation

(Customer experience)

People skills (e.g. Retention of

talents)

Technology as enabler for new business models

(e.g. Uber...)

Integration of different cross

channel touchpoints(Customer insights)

Organizational openess

integrating a network of

suppliers and clients

Business model innovation and acquisitions and

divestitures

Market factors (New business

models, globalization strategy...)

9/30/2015 6

Technology Adoption Lifecycle - Rogers Bell Curve(a developed by Everett Rogers)

� Benefits versus Risk who are the early adopters of

HANA, and what competitive advantage will they gain?

What pain points will HANA address for my company?

� It’s a case of when as companies will move to HANA.

Key decision point is when will be the right time?

� Acceleration and Speed will be a key element and

differentiator to move towards a Digital Transformation.

How long can you afford to stay with prior generation

technology?

� E2E Integration will be created trough data and

analytics, business models will be shaped by cloud, and

individual engagement will be powered by social

technologies in a secure environment

� Risk Mitigation for moving complex and large

established ERPs using a proper Digital Transformation

Roadmap with a clear set of committed benefits

� Competitive advantage IBM and SAP can provide

unique offerings, drive business case and customer value

through accelerated implementation and reduced risk

HANA is just a technology enabler. To Gain real competitive advantage and

deliver benefits of HANA requires redesign of core business processes

Establish baseline information for S/4 HANA & Simple Finance

2(a). What is S/4 HANA?

9/30/2015 8

HCM

(HR & Talent)Marketing &

E-Commerce

Procurement

& Travel

Sales &

Service

SAP S/4HANA applications and extensions

• Simple Finance (New)

• Simple Logistics (New)

• Industry & LOB Solutions (Core)

SAP HANA Platform

• SAP Fiori User Interface (role-based user

expérience for all devices)

• HANA Cloud Platform (HCP) (DevOps Platform

for SAP HANA Extensions)

• Analytics Platform

• Integration Platform (e.g. HANA Cloud

Integration (HCI) for SaaS; BigData Integration)

(New Simple ERP)

People

Devices

Big Data

Internet

of Things

Business

networks

Social

networks

S/4 HANA is the ERP Platform of the future

More than just ERP, HANA is a Platform that all SAP products are based on

9/30/2015 9

• In Memory platform • Real-Time analysis

• Real-Time Reporting

• OLAP and OLTP co-existence

• SAP HEC for SAP

• Business Suite on HANA

• Instant financial insight

• No aggregates

• Single Source of truth (views)

• Simplified data model

• New user experience

• Choice of deployment (Cloud/On-Premise)

• True single Source of truth

What Makes this possible?

1. In Memory Database

2. Support for Columnar Database tables

3. Ability to move logic to database layer via stored procedures

What Changes with S/4 HANA?

1. A complete rewrite of ECC code phased by functional area and

moving some application code to DB layer as stored database

procedures

2. New data model with removal of old tables, aggregates and

indices to fewer columnar based tables – So Real Single Version

of the Truth

3. Natively designed with SAP Fiori UX, offering an integrated user

experience with modern usability and instant insight on any device

4. Real Time Operational Analytics on the ERP platform versus

data latency with SAP BW reporting.,

5. Integration to the Internet of Things and business networks

for real-time collaboration (planned: machine-to-machine, Ariba

Network, Concur) in the networked economy

6. HCP as DevOps platform for extensions

Key Benefits?

1. Convergence of OLAP back into ERP for real-time reporting and single version of

the truth via Fiori Apps and HANA Live

2. Bring in many data sources from inside and outside the business into the HANA

platform for real insight

3. Use Speed of In-Memory to match & cleanse data on the fly

4. Build business rules in the Platform to create, including embedded analytics, to

create new optimized and innovative business processes

5. Optimization of business processes including removal of unnecessary steps, and

some batch processing

6. Simplification of Business Model (e.g. Embedded IBP, moving of other functionality

from separate Business Suite products back into S/4)

7. Deliver actionable insight and innovation fast from “Big Data

8. Simplified User Interface via SAP Fiori

Considerations for Database:

1. ECC on RDMS will provide very limited benefits versus S/4 HANA

2. Suite on HANA will provide some benefits versus S/4 HANA

3. Full IT and Business Benefits from S/4 HANA and enablement of S-Innovations

An enabler for business innovation

HANA, the simplifier of Enterprise Software

9/30/2015 10

Not just S/4 HANA …..

•S/4 HANA: (Simple and 4th Generation) a highly evolved suite of simple applications (or sERP)

running on the HANA database system.

•S/4HANA Finance: The first “Hanatized” LoB solution for S/4HANA. Designed to provide

strategic value with instant insight across finance via personalized and simple user experience.

•HANA Live: Uses the speed and power of in-memory computing in SAP HANA as a launching

pad for real-time operational reporting and analysis through leveraging predefined tables and

data models

•Lumira: a self-service solution that allows analysts and decision makers to access, transform,

and visualize data

•Fiori: the new user experience for SAP software. It applies modern design principles and

represents a personalized, responsive and simple user experience across devices and

deployment options

•HANA Cloud Platform: SAPs designated strategic DevOps platform for extending SAP (and non-

SAP) On Premise and Cloud solutions and Building new applications on the SAP HANA Platform

•HANA Cloud Integration: SAPs new integration platform for Hybrid ERP. It provides real-time

process and data integration capabilities between on-premise and Cloud SaaS applications.

S/4 HANA is a journey … Are there benefits to be gained now?

2(b). S/4 HANA Roadmap?

9/30/2015 12

S/4HANA Roadmap & delivery schedule

Continuous innovations

Yearly innovation cycle

Quarterly innovation cycle

SAP S/4HANA,

cloud edition

(next update)

SAP S/4HANA,

cloud edition

SAP S/4HANA,

on-premise edition

SAP S/4HANA,

on-premise edition and cloud edition

(next update)

Available

Today

Planned

InnovationsFuture

Solution

� Simple Finance 2.0 available today for S/4 HANA

� Other considerations for IS-Solutions/Add-Ons for S/4 HANA

(e.g. JVA for Simple Finance not yet available; IS-Oil Add-On needs to be adjusted for Simple Logistics)

� Next major release for S/4 HANA estimated November 2015

Provide by SAP: This is the current state of planning and may be changed by SAP at any time.

9/30/2015 13

SAP S/4HANA On-Premise Edition

High Level Roadmap

Today

• Scope: Full ERP scope with

optimized ERP processes,

including Simple Finance

• Scenarios: All Core ERP scenarios

(except HR: SuccessFactors EC)

• Industry Solutions:

• all SAP industries for ERP

scope, restrictions for sFIN (see

note 1968568)

• Country availability: 62 countries

• Language support: 38 languages

• Scope: Full ERP scope incl.

Simple Finance (sFIN) and

Simple Logistics (sLOG)

• Country availability for sFIN

und sLOG: 62 countries

• Language support for sFIN

und sLOG : 38 languages

• Focused investment based

on customer priorities

across the suite

• Language and country

support based on

customer requests

Planned Innovations (1511) Future Direction

Provided by SAP: This is the current state of planning and may be changed by SAP at any time.

9/30/2015 14

Solution Today (1506) Planned Innovations Future Direction

• Scope & Scenarios:

• 10 simplified Core Scenarios

• Scenarios related to: Accounting,

Controlling, Materials

Management, Production

Planning and Control, Plant

Maintenance, Sales and

Distribution, Logistics Execution,

Quality Management, Logistics –

general, Product Lifecycle

Management, Project System

• Integration to SFSF EC and Ariba

• Country availability : US, DE, AU, CA,

UK

• Language support: EN, DE, FR, ES, RU,

CN, JA, PT

• Scope: Focused investment

based on customer priorities

• Language support and country

availability: delivery based on

customer requests and based on

customer co-innovation

• Scope: Focused investment

based on customer priorities

• Language support and country

availability: delivery based on

customer requests

SAP S/4HANA Cloud Edition

High Level Roadmap

This is the current state of planning and may be changed by SAP at any time.

What are the drivers for S/4 HANA (Business & IT)?

2(c). Why S/4 HANA

9/30/2015 16

Customers Challenges today ….Map the outcomes to value

• High TCO, with multiple systems• Inflexible, lack of agility in adapting to

changes• Low productivity: Complexity of process,

data, architecture and UI • Multiple sources of the truth• Heavy on batch processing• Closing Speed compromised• Performance

• Data Latency, delayed decision making• Scattered information, Data Integrity• Limited self-service reporting capabilities• Slow turnaround for new reports• Locking issues and limited parallelism• IT heavy and not business intuitive• Unable to optimally execute planning,

budgeting and forecasting• Inability to measure business performance

BI | Planning | Industry Apps

ECC | Transactional Systems

• Incomplete information to make informed decisions

• How to create the “competitive advantage”?

• Limited connectivity options to all data sources

• ERP platform a blocker to enabling move to Digital TransformationPredictive | Big Data | IoT

• Reduced TCO through systems & Data Consolidation

• DevOps platform for extensions• Optimised Business Processes• Simplified data model• Improved performance• Single version of Truth• Real-time processing• Simplified Fiori based UI

• Agile, Increased speed to deploy new functionality

• Faster Decision Making• Unlimited workload capacity Self-

service reporting• Better Visualization for analytics• Business focused simple role based UI • Real Time Data to improve Diagnostic

Analytics

• Omni-channel data sourcing from any customer/ device/ business network.

• Creating the “super-competitors” through Predictive, Prescriptive & Cognitive analytics

• Transformation of ERP to power the digital enterprise

What Customers Want ….Reduce Costs, Increase Value!

Market conditions are changing….Technology can be an enabler, but we need to understand the business pain points

9/30/2015 17

An example Pain Points we are hearingIn most cases, S/4 HANA could be the resolution

Availability Anytime Anywhere: “We

need our ERP system to be available 24x7

to address new mobility and Analytics use

cases requiring Systems of Record data”

Reporting: Slow turnaround for new

reports versus Self Service Reporting

TCO & Finance: Users spend lot of

time on period closure activities

Performance issues:

ERP and BW Performance issues with

transaction and data volumes

ERP an Inhibitor to Innovation:

ERP platform a blocker to enabling

move to Digital Transformation

Data Latency: Users have to wait for

Batches to complete before Finance

data/adjustments posted on source

systems is reportable => delayed

decision making

Finance: Balance sheet accounts are

typically independent of CO whereas

profit and loss (P&L) accounts generally

include a CO account assignment.

TCO & Data Duplication:

Multiple BI systems, Data duplication

of single data – Across LoB’s and

across BW systems. Impacts

reconciliations, loads, latency etc.

Data Integrity: Different layers of data

process for same data which creates

erroneous records in process - increases

the number of points of failure

(i.e reconciliation issues / duplications)

TCO & DATA: Users have to post manual

adjustments to correct erroneous data -

High effort in correcting and verifying

across the multiple systems including

propagation from the source systems

Performance: Batch processing is

having a problem in terms of time

taken due to data. Few jobs cannot be

run dynamically because of the

capacity concern.

Performance: Locking issues and

limited parallelism

Low productivity: Complexity of

process, data, architecture and UI

.

Processes: IT heavy and not business intuitive

Integration: “We are struggling with how to get our legacy applications to play

nicely with cloud and also to be secured by the infrastructure.”

Finance: Unable to optimally execute

planning, budgeting and forecasting;

Inability to measure business

performance

Big Data: Data Incomplete - only

available from ERP with limited capability

for data sourcing from any customer/

device/ business network.

IBM Confidential

9/30/2015 18

Analysis for S/4 HANA opportunity qualification

Is there a Is there a need to review

the clients financial maturity

capability?

Are there Are there usability

issues with ERP?

applicable?

Are the following

Technical /Ops criteria

applicable?adopt HANA?

Does the Client have a

vision to adopt HANA?

Many sources of truth and

isolated processes impact

conclusive decision making

Incomplete , latent

information impact timing of

business decisions

Unable to optimally execute

planning, budgeting and

forecasting

Complex integration of ERP

and non SAP application

Aged User Interface

impacting adoption and

productivity

Lack of business insights -

latent data and complex

reporting architectures

Limited readiness to adopt

new processes and

functionality

High level of manual

intervention or effort for

Month End closing

High TCO for “as is”

Current systems coming to end

of support

Performance issue with current

ERP & BW

Complex architecture and high

level of customizing

Identified Use Cases that

leverage benefits of HANA

Sound Business Case &

Business sponsorship

Potential areas for HANA

adoption identified

Client recognises HANA

adoption necessary in the

near future

Pursue S/4 HANA

Reassess in the future as requirements and

inhibitors may change

No No No No

Yes Yes Yes Yes

Unable to measure and

monitor business

performance

Month End closing taking too

long or too much effort

Other business Pain points in

Finance or other Business

Functions

High # of Developments

=> High Support Costs

9/30/2015 19

HANA Feature / Benefit ECC SCM CRM BW PI EP MDG Comments

1 Optimised Transactions � � � � � � � SAP optimizing transactions for HANA DB

based on prioritization of value

2 Real Time Operational

Analytics � � � � � � � Run all your operational reports from the

source system via SAP HANA Live versus

data latency with SAP BW reporting.

3 Fiori Smart Business

Cockpits � � � � � � � Fiori Smart Business Cockpits providing

Real-time insights

4 Free Text searches � � � � � � � Free Text searches – google-like experience

in to improve customer service by reducing

response times

5 Eliminate batch processes � � � � � � � Eliminate batch processes - by enablement

of real-time operations

6 Direct Integration of IoT /

Big data into ERP � � � � � � � Direct Integration of IoT / Big data into ERP

- Innovate your Business – Transform

Business Processes

S/4 HANA Delta:

1. A complete rewrite of ECC code (only S/4 HANA) phased by functional area and moving some application code to DB layer as stored database procedures (available on Suite on HANA)

2. New data model with removal of old tables, aggregates and indices to fewer columnar based tables – So Real Single Version of the Truth

3. Natively designed with SAP Fiori UX, offering an integrated user experience with modern usability and instant insight on any device

4. Integration to the Internet of Things and business networks for real-time collaboration (planned: machine-to-machine, Ariba Network, Concur) in

the networked economy

5. HCP as DevOps platform for extensions

Platform Comparison:ECC AnyDB versus Suite on HANA versus S/4 HANA

9/30/2015 20

Functional Comparison:S/4 HANA Finance versus Simple Finance 1.0 versus Finance on ECC

Feature / Benefit S/4HANA

Finnec

(sFin 2.0)

Suite on

HANA/Simpl

e Finance 1.0

ECC 6.0

EHP7

AnyDB

Comments

1 HANA Enabled, including HANA Live � � �

2 Simplified Data model, Universal

Journal

� � �

3 Fast Close � � �

4 New Cash Management � � �

5 Integrated Planning and

Consolidation

� � � Standalone SAP BPC an

option

6 New General Ledger � � �

7 New Asset Accounting � � �

8 Improvements in Controlling � � �

9 Reduced Reconciliation efforts � � �

10 Fiori Solutions � � � Minimal on ECC, More on

SoH, Native on S/4 HANA

11 Mobility Solutions � � �

12 Reporting with BO Solutions � � �

20PANASONIC and IBM Confidential

Various deployment Scenarios based on “As is”

2(d). How to get to S/4 HANA?

9/30/2015 22

Moving to S/4 HANA – Summary OverviewTechnical Upgrade & Migration

S-Innovations

Simple Logistics

ECC 6.0

RDMS ECC Data(AnyDB)

Suite on HANA

HANA ECC Data

Da

tab

as

e L

aye

rA

pp

lic

ati

on

La

ye

r

Technical Migration to Suite on HANA DB

Technical Migration to Suite on HANA DB

S/4 HANA (Today)

HANA ECC Data

HANA S/4 Data

Sim

ple

F

ina

nce

1. S-Innovations Enablement

1. S-Innovations Enablement

SAP ECC Enhancement Pack 7

SAP ECC6.0 Enhancement Pack 7 (or above) SAP ECC6.0 Enhancement Pack 7 (or above) P

re-R

eq

s

1. HANA SPS09

2. ECC EHP7 SPS7

3. NetWeaver 740 SPS10

4. Additional Simple Finance 2.0 pre-reqs

1. HANA SPS09

2. ECC EHP7 SPS7

3. NetWeaver 740 SPS10

4. Additional Simple Finance 2.0 pre-reqs

Pre-requisites, compatibility, EHP, Kernel and NetWeaver versions: • SAP Simple Finance add-on 2.0 for SAP Business Suite powered

by SAP HANA 1.0 http://Service.sap.com/sap/support/notes/2117481• Financials processes released for usage with SAP Simple Finance

add-on 2.0: http://Service.sap.com/sap/support/notes/2119188• Release restrictions for SAP S/4 HANA Finance on-premise edition

1503 are listed in OSS notes OSS 2127080, 2117841 http://service.sap.com/sap/support/notes/2127080Localization requirements will need to be reviewed based on OSS note 2153644http://service.sap.com/sap/support/notes/2153644

• SAP Simple Finance, on-premise edition 1503 Release scope OSS Note 2119188http://service.sap.com/sap/support/notes/2119188

• See http://help.sap.com/sfin200 for detailed overview

SAP ECC Enhancement Pack 7

SAP ECC Enhancement Pack 7+

S/4 HANA (Future)

HANA S/4 Data

Simple Finance

9/30/2015 23

Scenario 2: Upgrade and Migrate

(all instances, or optionally consolidate)

Scenario 1: Greenfield Implementation

SAP ERP

or

SAP R/3

Or Non SAP

Scenario 5: Replicate into a Central Finance

(and optionally reduce number of instances over time)

SAP ERP

or

SAP R/3

Upgrade,

Migrate &

Enable SFIN

(SAP ERP 6.0

EhP7 on HANA)

Simple

Finance 2.0

SLT Replication

Real-time

ReconciledCentral Finance

instance

source system(s):

� SAP (any release)

� non-SAP systems

Re-Implement

SAP ERP

or

SAP R/3

Scenario 4: S/4 HANA Enablement

Suite on HANA

(SAP ERP 6.0

EhP7 on HANA) Enable SFIN

S/4 HANA

(SAP ERP 6.0

EhP7 on HANA)

Simple

Finance 2.0

S/4 HANA

(SAP ERP 6.0

EhP7 on HANA)

Simple

Finance 2.0

S/4 HANA

Simple

Finance 2.0

S/4 HANA

Scenario 3: HANA MigrationSuite on HANA

(SAP ERP 6.0

EhP7 on RDMS)(SAP ERP 6.0

EhP7 on HANA)

Simple

Finance 2.0

S/4 HANA

Migrate &

Enable SFIN

On-Premise (can be Private Cloud or Cloud (Public) is an available option for all scenarios

Deployment Scenarios for S4 HANA

9/30/2015 24

Upgrade, HANA Migration Solution Options(For Scenarios 2-4)

Solution Scope

Option

Cloud

Migration

On Premise

Migration

Migration

Without

Upgrade

Migration

With Upgrade

DMO Complexity

Low -

Medium

Complexity

High

Optimization

Upg_Mig_Classical

-

Option 1

Upg_Mig_Classical

-

Option 2

HANA Migration -

Option 3

HANA Migration -

Option 4

HANA Migration &

Optimization-

Option 5

HANA Migration -

Option 6

9/30/2015 25

Technical Migration to SAP HANA -

Considerations

IBM Confidential 25

9/30/2015 26

S2. SAP HANA Readiness Check for ERP

26 IBM Confidential

9/30/2015 27

HANATIZATION Approach

IBM Confidential

9/30/2015 28

Simple Finance 2.0 - Top 10 Lessons Learned

28IBM Confidential

9/30/2015 29

Leveraging Existing IBM Assets and Accelerators already used for Upgrade & Migration Services

Accelerated Security Tool

Semi-automatic remediation of

SAP roles impacted by the

upgrade.

9

IBM Internal Assets

IBM SAP Upgradeand HANA migration

Accelerators

7

6

5

1

4

3

2

IBM Partner Assets

Ascendant™ SAP Methods

Upgrade and Migration Roadmap with Accelerators

Upgrade and Migration services on

IBM Cloud

IBM Cloud for SAP Support Upgrades

and System management

IBM HANA Value Pack Services

IBM evaluation, strategy and

preparation services on S/4 HANA

HANA Migration Factory

Upgrade and migration factory

Accelerators and upgrade tools

Reduced cut-over outage

Adapted use of CUUC, TUUC,

DMO and/or NZDT

Panaya CloudQuality™ Suite

Upgrade impact simulation and

test platform

SmartShift Technologies

Automatic code remediation,

HANAtization and optimization services

Accelerated Upgrade Tool

Automatically identifies and corrects

syntax errors in custom developments

caused by the upgrade.

x x

8IBM S/4 HANA POC and Assets

Pre-documented sFIN 2.0 migration steps,

sFIN 3.0 and sLOG 1.0 process review

10

9/30/2015 30

S3. S/4 HANA Business Case & Roadmap Creation

I1. HANA Analytics Use Case - POC/Pilot Creation

R1. HANA Admin Support

R2. HANA Application Support

I3. Enterprise HANA Implementation

C2. BW Migration to BW on HANA

I4. BW on HANA Implementation

C5. SAP Business Suite Migration to HANA DB

C3. Conversion to LSA++ Architecture for BW on HANA

I5. Business Suite on HANA & S4HANA Implementation

I7. System Consolidation using BSoH

C8. SAP HANA Testing Services

HANA Conversion Services

HANA Implementation Services

HANA Support Services

C7. BPC Migration to HANA

I6. Advanced Analytics Implementation

IBM Services for SAP HANA & AnalyticsCross Sector Summary

DesignDesign BuildBuild RunRunStrategyStrategy

S2. S/4 HANA Readiness Assessment

S1. S/4 HANA Adoption Discovery Workshop

S4. Analytics Jumpstart

C6. S/4 HANA Activation

C1. SAP Upgrade Services

C10. SAP S/4 HANA Modernization

S5. Data Strategy for HANA

C9. SAP Fiori Enablement for HANA

R3. Data Lab Service

I2. S/4 HANA PoC on IBM Cloud

C4. Analytics Report Solution Modernization

Additional sector specific offerings based on specific industry use cases

S6. SAP Business Scenarios Analysis

HANA Strategy Services

9/30/2015 31

An example of roadmap to S/4 HANA using Service

Offerings




C5. SAP Business Suite Migration to HANA DB

I5. Business Suite on HANA & S4HANA Implementation



C1. SAP Upgrade Services

C10. SAP S/4 HANA Modernization

C9. SAP Fiori Enablement for HANAI2. S/4 HANA PoC on IBM

Cloud

C4. Analytics Report Solution ModernizationS6. SAP Business Scenarios Analysis



Ne

w In

sta

llU

pg

rad

e/M

igra

tio

n





C9. SAP Fiori Enablement for HANA

C4. Analytics Report Solution Modernization

S6. SAP Business Scenarios Analysis



Ph

as

e 1

Ph

as

e 2


S3. S/4 HANA Business Case & Roadmap Creation #2

xx. Sector Specific Offerings

xx. Sector Specific Offerings

DesignDesign BuildBuild RunRunStrategyStrategy


I2. S/4 HANA PoC on IBM Cloud

3(a). What are the drivers for

Simple Finance?Addressing Pain Points and Business Outcomes

9/30/2015 33

Sample Showcase: Maximizing the bottom line through SAP Simple Finance

S/4 HANA Finance: the new ERP Financial Solutions portfolio built for SAP HANA, allowing

“real-real-time” analytics at the “most granular level” across all financial dimensions.

9/30/2015 34

Simple Finance is highly focused on CFO’s requirements to run a real time business. See IBM Business Value Institute’s study on CFO’s from the IBM C-Suite Studies :http://www-01.ibm.com/common/ssi/cgi-

bin/ssialias?subtype=XB&infotype=PM&appname=GBSE_GB_TI_USEN&htmlfid=GBE03590USEN&attachment=GBE035

90USEN.PDF

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IBM CFO Study meets SAP S/4HANA Simple Finance

What?

Key?

Why?

How?

9/30/2015 35

The Global CFO Studies identified 4 Finance profiles

One group, Value Integrators, outperformed the rest

Source: IBM Institute for Business Value, The Global CFO Study 2010, The Global C-suite Study 2013

9/30/2015 36

IBM CFO Engagement meets S/4 HANA –

Simple Finance

SAP Simple Finance key functional

benefits

IBM CFO study Key Activities by

Performance Accelerators in the

Value Integrators quadrant

Boosts

Finance

Efficiency

(FE) and/or

Business

Insight (BI)

IBM & SAP

agreed

relative

importance

of each

activity

Specific SAP Simple Finance functions / modules /

benchmark data which enable the capability beyond

classic SAP FI / CO

1 Drive integration of information

across the Enterprise effectively

(single source of truth)

FE + BI Very High Universal Journal to achieve a virtual single operating

model, Integrated Business Planning, Cash Management,

Fraud Management, etc.

2 Drive enterprise cost reductions FE High Improved automation capabilities in nearly all areas, e.g.

Lease Administration

3 Measure / monitor business

performance

BI High Consistent business insights and prediction capabilities

across all Finance value map elements

4 Optimise planning, budgeting and

forecasting

FE + BI High Integrated Business Planning, Cloud for Planning

5 Execute continuous finance

process improvements

FE High Financial Close, Planning, Forecasting and Budgeting,

Managing Money, Finance Operations, Fraud and Audit

Management

6 Provide inputs to enterprise

strategy

BI Medium Extended simulation flexibility and speed through on-the-

fly calculation capabilities

7 Develop talent in the finance

organisation

BI Medium Modern user experience, improved automation

capabilities to get rid of transactional activities

Simple Finance can be an enabler to address pain points from Finance Operation

3(b). SAP Simple Finance Key Feature:

New Data Model

9/30/2015 38

Is S/4 HANA a real innovation? What is really different?

Agg Agg Agg Agg Agg Agg Agg Agg Agg Agg Agg Agg Agg

Ind Ind Ind Ind Ind Ind Ind Ind Ind Ind Ind Ind Ind

K K D D: 1 Q Q CUR

Line Item Table Keys

K K D D: 2 Q Q CUR

create

dublicate

K D Q CUR

Industry Solution

K D Q CUR

Dimensions Quantities Curr

S S

Status tables

S S

Index TablesInd Ind Ind Ind Ind Ind Ind Ind Ind Ind Ind Ind Ind

AggregatesAgg Agg Agg Agg Agg Agg Agg Agg Agg Agg Agg Agg Agg

Change logs

2

3

4

5

6

K D Q CURHeaderTable

K D Q CUR

create

dublicate

S S

Status tables

S S

7

8

200 – 350 fields

Document

concept

SD

MM

FI

PM

1

6Line Item Table

Header Table

Business Warehouse Extractors ETL layer Modeling layer Presentation layer

K K D D: 2 Q Q CUR K D Q CUR

D: 1

D:

D:

Aggregates no longer required

Index Tables no longer required

Change logs no longer required

Header tables no longer required

Real-Time Data

Replication

SAP In-Memory

Database

Modeling

StudioSAP

HANA

columnar storage for every field

400 fields

Insert new

field

SAP ERP SAP S/4 HANA

Simplified Data Model

3(c). SAP Simple Finance Key Feature:

Universal Journal

9/30/2015 40

Challenges of the Current ArchitectureMultiple Sources of Truth

9/30/2015 41

• The Universal Journal combines and harmonizes the good qualities of all

accounting components and can also be extended with customer fields.

• It allows you to establish a single source of truth for getting more financial

insight in what is happening in the company, with a higher data quality due

to built-in ERP validations.

• Universal Journal supports Account Baed COPA only

� Concept: “Take the best of all

worlds” (e.g. ledger, market

segment, coding block, etc.)

� ONE line item table with full detail

for all applications - for instant

insight & extensibility

� Secondary cost elements are G/L

accounts.

� Data stored only once: no

reconciliation needed by design

� Reduction of memory footprint

through elimination of redundancy.

� Fast multi-dimensional reporting

possible without replicating data to

business warehouse (BW).

� If BW is in place anyway, only one

single BI extractor needed

(instead of many today).

� Non-disruptiveness –for ABAP

program perspective, “read access”

remains the same. SAP provided

“compatibility views”, which

redirects the program to the new

format in HANAs

SAP’s Single Version of Truth – Universal Journal

3(d). SAP Simple Finance Key Feature

Central Journal / Central Finance “An Alternative Implementation scenario”(Scenario 5 from previous Slide)

9/30/2015 43

Migration to Central Finance Scenario

Can be achieved via Central Journal in a distributed system landscape

� Concept: “Take the best of all

worlds” (e.g. ledger, market

segment, coding block, etc.)

� Real-time replication of FI and

secondary CO postings from

several source systems into a

central simple finance system

� Document drill back to the

original FI document in the source

system

� Replication of cost objects

(production orders, product cost

collectors, and internal orders)

from source systems to the central

system

� Mapping functionality for

harmonization of master data

before posting into central finance

� Access to existing master data

mapping from SAP Master Data

Governance (optional)

� Centralized error handling with

the error correction and suspense

tool

Benefit from SAP Simple Finance while not

touching your existing system landscape

3(e). SAP Simple Finance Key Feature:

Accelerate Month-end Close

9/30/2015 45

Accelarated Month End CloseLeverage Soft Close and Accelaterate Hard Close

4. Future Analytics

The art of the possible

5. IBM Lab Solutions for SAP

(LSS) Demos

9/30/2015 49

4

LSS Electronics Storefront App: View in stock, order, and pay for electronics products and equipment at the LSS Electronics retail store via their

e-commerce storefront

Value Drivers: Increased customers, increased revenue Target Audience: Retail managers

LSS Hybris Electronics Storefront

He can now go to his cart and check out. He enters his

payment, bill, and shipping details.

Technologies Leveraged: hybris Commerce, S/4HANA

The customer “Checks Out” and the camera is to be

shipped directly to him.


5

A potential customer has been browsing the web for a

new camera to buy. He comes across the LSS Electronics

e-commerce storefront and decides to view current

product offerings.


1

Here, he can filter by product type and brand to view

products available. He decides to view the cameras

that the store currently has. The product data,

maintained in S/4HANA, is displayed on the

storefront.


2

The customer can view product specs and reviews.

Deciding to buy a particular camera, he adds it to his

cart.

Technologies Leveraged: hybris Commerce,

S/4HANA

3

9/30/2015 50

4

LSS Smart Shopper App: Improve the customer shopping experience by helping customers navigate through the store, automatically adding

coupons and recommending products, and keeping track of items added to the cart in real time to streamline customer checkout.

Value Drivers: Increased store revenue, increased customer loyalty, decreased check out times

Target Audience: Retail customers, retail workers, retail managers.

LSS Smart Shopper App

Upon entering the store, the app tells the customer

the optimal route to get through the store quickly

based on the products she needs to buy.

Technologies Leveraged: S/4HANA, UI5, HCP,

Predictive Analysis

While adding new products to her cart, the app scans

the products in real time via RFID.

Technologies Leveraged: S/4HANA, UI5, HCP, IOT

Service

5

A user is in need to run some errands after work today,

and she needs to get into and out of the store quickly.

Prior to going into the store, she logs into the LSS Smart

Shopper app to open her profile

Technologies Leveraged: S/4HANA, UI5

1

She can navigate to the products tab and can select

the products that she wants to buy.

Technologies Leveraged: S/4HANA, UI5

2

Upon selecting products, the app recommends

other products the customer may be interested in

and also notifies and applies any offers currently

going on in the store.

Technologies Leveraged: S/4HANA, UI5, Predictive

Analysis

3When she goes to check out, the customer doesn’t need to

unload the products on the register. She can just scan her

phone and pay, as the app has tracked all of her products

throughout the store.

Technologies Leveraged: S/4HANA, UI5, HCP, IOT Service

6

9/30/2015 51

The user can view social media postings from their

colleagues in the same city to see where their

colleagues are headed to for dinner or drinks.

Technologies Leveraged: HANA Cloud Platform, UI5

2

4

The user then views their invitations, meetings,

and reservations that have already been

scheduled

Technologies Leveraged: HANA Cloud Platform,

UI5

3

LSS Business Traveler App Use Case: A mobile app that allows users to easily view and select restaurants and predict the places their colleagues

and customers will most likely prefer, and book and expense the vehicles that will get them there.

Value Drivers: Easier travel booking, decreased time spent on expense reports Target Audience: Business Travelers

LSS Business Traveler App

An A priori Algorithm leveraging the users preference data

and their past restaurant expense data is used to predict the

restaurant that the user would enjoy the most.

Technologies Leveraged: S/4HANA, Predictive Analysis, HANA

Cloud Platform

The user views their colleagues in the area that are available to meet

up. Another A priori algorithm is used to pick the top restaurants both

colleagues would enjoy based on each users’ preferences and expense

data. After dinner, users can file this expense data.

Technologies Leveraged: S/4HANA, Predictive Analysis ,HANA Cloud

Platform, Concur

5

A business traveler opens up the application and creates

their profile by syncing the app with social media sites and

answering questions on their food preferences and the

ideal distance range to travel for food.

Technologies Leveraged: HANA Cloud Platform, UI5

1

Users can view and reserve vehicles to take on their business trip

directly within the mobile application.

Technologies Leveraged: UI5, HANA Cloud Platform, Concur

6

9/30/2015 52

Drilling down into where the churn is occurring, she

finds out that a lot of high value customers are leaving

the bank.

Technologies Leveraged: Hadoop, HANA, Lumira

2

4

She reaches out to the advanced analytics team to

find out the characteristics of customers who may

be likely to leave the bank and offers them a

promotion based on upcoming life events.

Technologies Leveraged: Hadoop, HANA, PAL

3

Customer 360- Banking Churn Management Use Case:One of the growing issues in the banking industry is customer churn. This asset will focus

on how a proactive approach can help to prevent Customer Churn and how advanced analytics can help identify customers most likely to switch

banks and take corrective action.

Value Drivers: Increased revenue, decreased customer churn Target Audience: Bank Marketing Managers

Customer 360 - Banking Churn Management

She offers these customers valuable offers and

promotions based on their interests and past banking

services.

Technologies Leveraged: Hadoop, HANA, PAL, Lumira

Several months later, she analyzes how these promotions have

impacted customer churn. She sees a significant decrease in customer

churn as a result, acknowledging she successfully turned insight into

action.

Technologies Leveraged: Hadoop, HANA, Vora, Lumira

5

A customer churn manager at a bank opens up the Customer 360

app to view the current customer churn situation at her bank.

She notices there has been an increase in churn over the past 3

months.

Technologies Leveraged: Hadoop, HANA, Lumira

1

9/30/2015 53

He finds out that a primary factor of this has been related to the

production of one of their pharmaceutical products that lowers

cholesterol as they have not been producing as much as forecasted but

there has been an increase in the amount of waste of this product.

Technologies Leveraged: Lumira, S/4HANA

1

Overview: A VP of Operations in pharmaceutical company’s healthcare division leverages the Value Realization Dashboard to analyze production

of their plants compared to forecasts. The user can drill down into each plant to see which plants are underperforming and which factors may be

contributing to this. When actual batch production is less than forecasted, users can run a predictive analysis to see what may be causing this to

take corrective action.

Value Drivers: Decreased waste, increased revenue, increased visibility

Target Audience: COO, VP of Operations, Supply Chain Analysts

Value Realization

2

3

An operations analyst runs a multi linear regression model on the

batches of the cholesterol drug to figure out what has been causing the

increased waste.

Technologies Leveraged: Lumira, S/4HANA, Expert Analytics

4

The VP of Operations notices that production

is much lower than forecasted for the plant in

Munich. Wanting to see why this is the case,

he drills down into the plant for more details.

Technologies Leveraged: S/4HANA, Lumira

The VP of Operations is interested in viewing the

production and revenue of his pharmaceutical

plants to see if the plants are performing as

forecasted. He opens up the value realization

dashboard and can view these details by plant and

product in real time in his S/4HANA system

Technologies Leveraged: S/4HANA, Lumira,

The analyst determines that the batches that have often resulted in

waste have included carnuba wax from a new supplier, which most

likely has different chemical properties as it’s sourced from a different

region in Brazil. The analyst decides to no longer source the wax from

this provider moving forward.

Technologies Leveraged: Lumira, S/4HANA, Expert Analytics

5

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