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Dr. Heidger Marx, Principal Industry Advisor ChemicalsSAP Digital Business Services, Energy & Natural Resources
How the SAP Model Company for Chemicals can speed up your SAP implementationsInternational SAP Conference for Chemicals, Prague, October 18th, 2018
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Service Overview
Scope
Delivery Approach
Agenda
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Digitization is Happening NOW
Over 2 billion people now on social networks.
81%of CEOs think mobile technologiesare strategically importantfor their business. 4
4 Annual Global CEO Survey, PWC, 2015
of CEOs think socially enabled business processes are strategically important for their business. 4
61%
Cloud
Social Networks
Mobility
Internet of Things
Big Data Business NetworksTechnology
2 Technology Adoption Report: Business Networks, Ardent Partners, 20141 ScienceDaily. ScienceDaily, 22 May 2013 3 Internet of Things (IoT) 2013 to 2020 Market Analysis, 2013
$85 billion
Growth in cloud-based software as a service (SaaS) will continue at 20% each year through 2018, when the global market could reach nearly $85 billion. 5
5 From box to cloud, McKinsey 2015
Of the world datahas been generatedduring the last 2 years 1
Things will be connectedby the end of 2020 3
90%
212B
Growth in adoption of business networks in next 2 years 240%
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Transformation Needs to Happen NOWto stay ahead of competition
1) answer of more than 80% of CEOs in “Annual Global CEO Survey”, PWC, January 2015
50% of the companies in current present S&P500 will not be there in 10-years-time
McKinsey, “Creative Destruction”
CEOs see the potential…
60% expect 15%–50% of their earnings growth in the next 5 years to come from technology-enabled business innovations.
McKinsey study, 2013
86% say technology advances will transform their business over the nextfive years.
CIO Journal, January 2015
… and see a clear vision and plan as key success factors1
A clear vision of how digital technologies can help achieve competitive advantage
A well-thought-out plan for digital investments, including defining measures of success
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SAP’s Digital Platform
SAP Model CompanySAP S/4HANA Value Assurance
SAP Digital Innovation Lab
SAP Model Company
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Time to value is key in assuring a successful digital transformation
Long, risky and costly implementation times
Line-of-business (LoB) and industry-specific know how recognized as a need, not just nice to have
Fast-changing business challenges requiring a flexible solution
SAP Model Company service to deliver reference solutions from SAP that are: Preconfigured and
comprehensive Tailored to an industry or line
of business with end-to-end business processes
Enriched with real-life experience, delivered as an engineered service
Accelerated innovation adoption and simplification of the digital transformation
THEchallenge
Transform to SAP S/4HANA
Accelerate implementation for faster time to value
Adopt early and quickly – and free up resources for innovation
THEsolution
THEoutcome
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The SAP Model Company
pre-packaged, ready-to-use, comprehensive reference solution, tailored to an industry or line of business
state-of-the-art applications and proven best practices and encapsulates the experience from successful, real-life digital transformation projects
Embedded in an overall transformation road map and delivered as a service, a model-company driven approach enables you to reduce cost, decrease risk, and accelerate adoption during discovery, preparation, exploration, and realization activities
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The SAP Model Company Building Blocks
Best Practice
Industry Reference Architecture
Engineered Services Technology / Functional
SAP Solution Manager Documentation
Pre-Configured Processes
Sample Data
standardized professional service with accelerators for fixed outcome and fixed price
sample master data and transactional data to showcase the business
SAP S/4HANA, Hybris, Success Factors, Industry Solutions
Comprehensive business process documentation, methodologies and step-by-step approaches combining knowledge of customer projects
template solution for an architecture providing business capabilities to run end to end operations
preconfigured steps for operating the business with SAP Software
control, monitoring and transport for the landscape
SAP Software
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Projected Reduction in Effort using SAP Model Company Approach
Traditional Project Implementation
Approach with Model Company
Explore 20 – 25 Weeks*
6 Weeks
Build: 30 - 45 weeks*
Build: 12-16 weeks*
Import the Model Company to customer landscape
Target: Reduce
Blueprint efforts upto
80-100%
Target: Reduce
Realization efforts upto
50%
Target: Reduce Testing
efforts upto 30%
Model Company KPI’s
Integration Validation
* Estimated Efforts
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SAP Value Assurance for SAP S/4HANA powered by the Model Company
SAP Model Company is the baseline allowing Clients and Partners to differentiate on to accompany and ensure success for your journey of digitization
SAP Model Company – Implementation framework Project with the intention to go-live Integration into existing customer landscape Different deployment options
(SAP HANA Enterprise Cloud / on-premise / and the like) Project feedback to continuously improve SAP Model Company
SAP Model Company – Prototype and design Dedicated proof of concept and sandbox landscape for SAP Model Company Different deployment options
(In the cloud / Amazon Web Services / on premise) Landscape that can be configured
SAP Model Company – Discovery Introduction of SAP Model Company Guided tours and meet-the-expert sessions Read-only, generic demo Platform managed by SAP Fast and ready access (such as, less then 24 hours)
INVO
LVEM
ENT
OF
SAP
ENGAGEMENT SCOPE
Plan and safeguard
Acceleratetechnical implementation
Acceleratefunctional realization
Innovate
1
2
3
4
C
A
B
3
1
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SAP Model Company: Innovation adoption made simple
• Get a jump-start for your implementations• Deploy SAP innovations fast, simple and flexible• Reduce non-value adding tasks to a minimum
• Use state of the art architecture and best practices• Minimize risk with proven end-to-end solutions• Leverage business and implementation guides
• Reduce complexity and use ready-to-run appliances• Accelerate and get your model company in days• Minimize costs with cloud based deployments
Fast time to value
Predictable results
Simple on-boarding
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Service Overview
Scope
Delivery Approach
Agenda
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SAP Model Company for Chemicals – Scope (version 4 on 1709)Over 1200 Processes and 149 end-to-end Scenarios
Based on Best Practices
SAP Solution Manager Documentation
Supplementary Components
o SAP S/4HANA Chemicals trial with industry best practices US 1709 – detailso SAP Best Practices for S/4 HANA US 1709 Baseline – further details
o Weigh & Dispenseo Environment, Health and Safety - EHSo Manufacturing Performance Management – MIIo Global Batch Traceability – GBT (option)o SAP Leonardo IoT Scenario (option)o Digital Boardroom (optional additional service)
o Business Process Master List, Business Process Flows, Business Capability
Model, Reference Architecture, End to End Business Scenarios, Configuration
Guide, Test/Demo Script
Important - The Model Company is build on the SAP S/4HANA Chemicals trial with industry best practices for S/4HANA 1709.
Some processes from the Best Practice Baseline were specifically tested within the Best Practice Chemicals (with baseline master data instead of chemicals
master data). This is why the Best Practice Baseline is listed here. Further processes from the Best Practice Baseline may be used, but they were not tested in
an integrated way.
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SAP Model Company for Chemicals – Scope Options
A service scope option is a combination of scope items that can be added on top of the standard package.
Scope options Required Scope items / Functionality delivered
M Mandatory Mandatory Manufacturing Weigh & Dispense Manufacturing Performance Management – MII Best Practices content
Asset Management Sustainability
Product Safety and Stewardship (Best Practices content) Environment, Health and Safety - EHS
Procurement Sales, Marketing & Service Supply Chain Execution Supply Chain Planning Finance and Controlling
01 Scope Option GBT Optional Global Batch Traceability – GBT Scenarios
02 Scope Option Leonardo IoT Optional SAP Leonardo IoT for Distributed Manufacturing – IoT Scenario
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SAP Model Company for ChemicalsWhat is SAP Manufacturing Performance Management?
Measure the Overall Equipment Efficiency with MII and use this as starting point for Industry 4.0 and SAP Leonardo
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SAP Model Company for ChemicalsWhat is SAP Global Batch Traceability?
See the networks of batches from purchase orders, across production and transportation to deliveries – across systems
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Key features
• Sensor data for accurate tank inventory levels
• More accurate storage and transport planning
• Reduce spill size, costs, scrap
SAP Model Company for ChemicalsWhat is SAP Leonardo IoT?
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SAP Model Company for ChemicalsWhat is SAP Digital Board Room*?
Total Transparency 360° view of your business One source of truth (KPI definition
and data) Always up to date (“real-time”) Any detail available
Agile Decisions Fewer “adjournments” due to
missing information No discussion of data quality
and KPI consistency Instant simulation of alternative
scenarios e.g. along value driver tree
Simplified Execution No tedious alignment on
presentation documents beforehand Full history available including
decisions and comments Consistent tracking of follow-ups
* not in scope of the Model Company
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SAP Model Company for ChemicalsWhat is SAP Solution Manager?
Over 1200 processes (incl. process variants) and 149 end-2-end scenarios are documented with diagrams, test scripts, and configuration documents from level 1 to level 6 (transaction). From here you build your own processes and scenarios.
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SAP Model Company for Chemicals – What is New in Version 4?
Additional Scenarios from SAP Best Practices for Chemicals 1709
✅ Embedded Transportation Management ✅ Embedded EWM✅ Intercompany, extended Supply-Chain✅ Advanced ATP✅ Fiori Reporting and Analytics✅ Additional Product Safety Scenarios✅ Advanced Variant Configuration✅ PP/DS Scenarios
Additional MC-specific enhancements
✅ SAP Leonardo Scenario: IoT Tank Level Monitoring (option)
✅MII: enhancement of OEE scenario to include confirmations from MII
✅ Embedded Transportation Management: Inbound scenario in Procurement
Changes to the landscape
✅ Applications included: S/4 HANA, MII✅ Other components as new scope options
✅ Global Batch Trace✅ SAP Leonardo IoT
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SAP Model Company for Chemicals – Scenarios (1/7)
Business Priority Scope Item Scenario(Preconfigured content and delivery accelerators)
Plan to Product Manufacturing
Model Company for ChemicalsMII - Manufacturing Performance ManagementWeigh & Dispense - Scale TestWeigh & Dispense - Weigh with PI SheetWeigh & Dispense - Weigh with Weighing Cockpit in S/4HANA
Best Practices for Chemicals 1709 Bulk Manufacturing (without PI Sheet)Make-to-Order (Process Industry)Multiple Product Campaign Run incl. Material Quantity Calculation Active Ingredient Processing Repackaging Relabeling Bulk Manufacturing (with PI Sheet) Blending Process with Material Quantity Calculation Inbound Storage Tank Management Process Order with Co-Product and Quality ManagementWork-in-Process (WIP) Batch Repetitive Manufacturing with Quality ManagementMake-to-Stock (Process Industry) with staging using PMR in EWM Subcontracting (internal) Tank Trailer Filling Engineering Change Management with Engineering Records Demand-Driven Buffer Level ManagementMTS Variant Configuration utilizing classical Variant ConfigurationMTS Variant Configuration with Material Variants utilizing Advanced VariantMake to Order Variant Configuration utilizing Advanced Variant Production Subcontracting - External Processing(continued on next slide)
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SAP Model Company for Chemicals – Scenarios (2/7)
Business Priority Scope Item Scenario(Preconfigured content and delivery accelerators)
Plan to Product Manufacturing (cont‘d.)
S/4 HANA Best Practices 1709 BaselineMaterial Requirements Planning Rework Processing (Stock-Manufacturing Material)
Plan to Product Supply Chain Planning
Best Practices for Chemicals 1709 Bottleneck Scheduling with Top-down / Bottom-Up Approach Feasible Scheduling Plan
Request to Service Asset Management
Best Practices for Chemicals 1709 Refurbishment ManagementOverhaul ManagementWork Clearance ManagementOperational Maintenance Preventive Maintenance Investment Management in Plant Maintenance Refurbishment Management with Sub ContractingMulti Resource Scheduling Calibration Processing
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SAP Model Company for Chemicals – Scenarios (3/7)
Business Priority Scope Item Scenario(Preconfigured content and delivery accelerators)
Procure to Pay Procurement
Best Practices for Chemicals 1709 Subcontacting (External) Consumable Purchasing Purchase Contract Scheduling Agreements in Procurement for Consignment and Stock Material Procurement of Direct Materials Ariba - Purchase Order to Invoice Integration with Procurement Requisitioning Supllier Classification and Segmentation Procurement of Pipeline MaterialsQuality Management in Procurement Activity Management in Procurement Serial Number Management Ariba - Sourcing Integration Request for Price Supplier Evaluation and Performance Monitoring Ariba - Quote Automation Integration for Procurement Procurement of Services Intercompany Stock Transfer Intracompany Stock Transfer SAP S/4HANA for Legal Content
S/4 HANA Best Practices 1709 Baseline Real-Time Reporting and Monitoring for Procurement Predictive Analytics for Contract Consumption in Procurement
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SAP Model Company for Chemicals – Scenarios (4/7)
Business Priority Scope Item Scenario(Preconfigured content and delivery accelerators)
Order to Cash Sales, Marketing & Service
Best Practices for Chemicals 1709 Sell from Stock Customer Returns Free of Charge Delivery Debit Memo Processing Sales Contract Management Sales Order Processing (incl. PoD and CoA) Samples Processing Sales Order Processing with Customer Down Payment Credit Memo Processing Sales Order Processing with Collective Billing Sales Processing using Third-Party with Shipping Notification Sales Processing using Third-Party without Shipping Notification Sales of Non-Stock Item with Order-Specific Procurement Totes Handling Invoice Correction Process with Debit Memo Invoice Correction Process with Credit Memo Returns and Complaints (incl.QM) Consignment Sales Third party with subcontracting Sales Order Entry with One Time Customer Sales Rebate Processing Intercompany Sales Order Processing - Domestic Advanced Available-to-Promise Processing Delivery Processing without Order Reference Accelerated Customer Returns SAP Fiori Analytical Apps for Sales
(continued on next slide)
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SAP Model Company for Chemicals – Scenarios (5/7)
Business Priority Scope Item Scenario(Preconfigured content and delivery accelerators)
Order to Cash Sales, Marketing & Service (cont’d.)
S/4 HANA Best Practices 1709 Baseline Sales Order Fulfillment Monitoring Order-to-Cash Performance Monitoring Planning Apps for Sales
Order to Cash Supply Chain Execution
Model Company for Chemicals Embedded TM – Inbound Scenario
Best Practices for Chemicals 1709 Return to Vendor Physical Inventory – Inventory Count and Adjustment Stock Handling - Rework, Scrap, Blocked Stock Basic Warehouse Inbound Processing from Supplier Physical Inventory with EWM Basic Warehouse Outbound Processing to CustomerQuality Management in Stock HandlingOutbound Logistics Optimizer Based Planning and Carrier SelectionOutbound Logistics with Transportation Management Advanced Warehouse Outbound Processing to CustomerMultiple Product Campaign Run with Cleanout order
S/4 HANA Best Practices 1709 Baseline Initial Stock Upload for Warehouse Replenishment in Warehouse Scrapping SAP Fiori Analytical Apps for Inventory and Warehouse Management
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SAP Model Company for Chemicals – Scenarios (6/7)
Business Priority Scope Item Scenario(Preconfigured content and delivery accelerators)
Plan to Product Sustainability
Model Company for Chemicals Safety Incident Recording Health Risk Assessment Exposure Monitoring Chemical Approval
Best Practices for Chemicals 1709 Product Safety Dangerous Goods Management Substance Volume Tracking (Sales) Substance Volume Tracking (Purchasing)Global Label Management Substance Volume Tracking (Production) Dangerous Goods Management - Mixed Load Check SERC - Secondary Data Determination SERC Installation Recipe Development Advanced Ingredients Replacement with Recipe Finder
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SAP Model Company for Chemicals – Scenarios (7/7)
Business Priority Scope Item Scenario(Preconfigured content and delivery accelerators)
Core Finance Finance and Controlling
S/4 HANA Best Practices 1709 Baseline Accounting and Financial Close Credit Management Accounts Receivable Accounts Payable Advanced Bank Account Management Advanced Cash Operations Profitability and Cost Analysis Internal Order - ActualOverhead Cost Accounting Standard Cost Calculation Period-End Closing - Plant Inventory Valuation for Year End Closing Accounting and Financial Close – Parallel Ledger Asset Accounting Asset Under Construction Asset Under Construction - Parallel Ledger Direct Debit Period End Closing - Maintenance OrdersMachine Learning - SAP Cash Application Integration Managing Material Price Changes and Inventory ValuesGeneral Ledger Allocation Cycle Cash Journal Event-Based Revenue Recognition - Sell from Stock (S/4HANA Best Practices for Cloud 1805)
Best Practices for Chemicals 1709 Activate Document Splitting for Chemicals
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SAP Model Company for Chemicals – Scenarios of the Scope Options
Business Priority Scope Item Scenario(Preconfigured content and delivery accelerators)
Plan to Product Scope Option 01: GBT
Model Company for Chemicals Purchasing with Global Batch Traceability Production with Global Batch Traceability Sales from Stock with Global Batch Traceability Analysis of Batch Genealogy
Plan to Product Scope Option 02:SAP Leonardo IoT
Model Company for Chemicals IoT Tank Level Monitoring
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SAP Model Company for Chemicals
Additional Benefits✅ Installation support✅ Customer Enablement (“Discovery”)✅ Explanation of all processes✅ Integration of all included components done✅ Content is already in SAP Solution Manager 7.2✅ The Model Company fully integrated into the SAP
Activate Methodology✅ On top customers can order a service for the fit/gap
analysis
Mod
el C
ompa
ny fo
r C
hem
ical
s
Global Batch Traceability (option) Environment, Health & Safety
SAP Leonardo IoT (option)
Weigh & Dispense
Manufacturing Performance Management
Digital Boardroom (optional additional service)
Additional Pre-Configured and Ready-to-Run Processes
SAP Best Practices for Chemicals 1709
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Service Overview
Scope
Delivery Approach
Agenda
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SAP Model Company Delivery
D-, Q-, and P-
system
Customer buys SAP Model Company service Sandbox system
Cloud or on-premise
Receives link to
SAP Cloud Appliance Library
Customer copy
1
4
Cloud provider
SAP Model Company services
Existing system
SAP S/4HANA Value Assurance or Advanced Deployment
5
3
Partner
Customer
2
Discovery, fit-gap analysis
Blu-ray discs
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SAP Model Company Delivery
Customer
SAP Cloud Appliance Library
Amazon Web Services
MS Azure
On PremiseCloud Hosting
Blu-ray discs
SAP HEC
SAP Value Prototyping
customer owned / managed account
SAP Value Assurance Service Packages
SAP managed account / SAP hardware
Validation
Delivery
SAP will safeguard the last step of the transformation with Value Assurance Service Packages and Advanced Deployment Packages.
SAP Cloud Appliance Library provides access to an online library of preconfigured SAP solutions that can be instantly deployed in cloud environments
You can purchase your industry Model Company from a cloud environment, access it immediately and let SAP or your preferred partner conduct the fit-gap right away. In the cloud or on-premise.
SAP Advanced Deployment
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System Landscape
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Delivery Approach: Typical Project PlanMain project activities
SAP involvement
Customer involvementKickoff and Workshop Preparation
Installation
Expert WorkshopsIn Parallel
Closing
4 - 6 Weeks
START
Prepare
8 days
2 days
20 days
1 day
Additional lead time for the HEC landscape build
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Responsibilities
Installation support for the Model Company Provide experts for the process workshops Document workshop results as input for fit/gap
analysis
(in addition, the customer can order a service for the fit/gap analysis to prepare for the implementation project)
What does SAP do?
For the installation Order SAP HEC or Provide a AWS or MS Azure account or For on-premise install the Model
Company on your sandboxGet your test licenses where needed
For the process workshops Provide a team with the necessary
expertise Provide the required facilities Prepare, execute, and post process the
workshops
What do customers do?
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SAP Model Company – Value Proposition and Benefits
Reduce total costs of implementation
Start your digital transformation journey
Benefit from latest innovations in business software to help you in the digital transformation journey
Decrease implementation risks
Decrease implementation time
Minimize customizations
Preconfigured solution ready to run as sandbox or demo
Ability to rapidly build demo environments and proofs of concept with reference lookup for standard configuration in the cloud or on premise
With end-to-end processes containing proven LoB/Industry best practices and reference architecture
Starting with SAP standard software and operating it through the entire software lifecycle
Foundation for your fit-gap analysis, to accelerate your deployment
If you want to… You benefit from…
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Don’t wait! Start NOW!Next steps and more information
Useful linksTransition to SAP S/4HANA on sap.com:http://go.sap.com/services/transition-to-s4hana.html
Blog post on SAP Community Network:From Your Current State to Digital with SAP S/4HANA Value Assurance
News article (interview with Michael Kleinemeier):SAP Digital Business Services: Support Evolves with SAP S/4HANA
About SAP Digital Business Services:www.sap-digital-business-services.com
Get started with your service packageand start your smooth journey to SAP S/4HANA withSAP Digital Business Services today
Build your SAP S/4HANA journeyIdentify areas of scope and define your transition path with the discovery workshop for SAP S/4HANA
Contact / follow us on:
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Thank YOU for your attention!
Contact:
Dr. Heidger MarxPrincipal Industry Advisor ChemicalsDBS ENR [email protected]+49-160-889-6266
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