SAP S/4HANA & The Path to The Intelligent EnterpriseNordic User Group – September 12th 2019
2INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP.
Except for your obligation to protect confidential information, this presentation is not subject to your license agreement or any other service
or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or any related
document, or to develop or release any functionality mentioned therein.
This presentation, or any related document and SAP's strategy and possible future developments, products and or platforms directions and
functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this
presentation is not a commitment, promise or legal obligation to deliver any material, code or functionality. This presentation is provided
without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a
particular purpose, or non-infringement. This presentation is for informational purposes and may not be incorporated into a contract. SAP
assumes no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional 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.
Disclaimer
3INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Strategy: Deliver the Intelligent EnterpriseKey Building Blocks
Intelligent Suite1
Intelligent Technologies2
Digital Platform3
Automation powered by AI
Advanced insight predictive analytics
Digital-age user interface with conversational UI
Digital assistance with in-context chatbots
Next-generation business processes for the digital economy
4INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
The Digital CoreSAP S/4HANA – The most comprehensive, intelligent, ERP suite
• Overview Page & Analytics
• Procurement Hub
• Predictive Contract
Consumption
• GR/IR Reconciliation
• Commercial
Project Mgmt.
• Project & Portfolio Mgmt.
• Variant Configuration
• Recipe Management
• Realtime Finance (UGL)
• Closing Cockpit
• Commodity Mgmt.
• Compliance Framework
• ML Cash App
• Bus. Integrity Screening
• New Customer Management,
Service Core Option
• Multi-Channel Interaction
Center
• Legal Content Management
• GDPR Tools
• Co-Pilot as Digital Assistant
• New Geographical
Enablement
• Report & Repair Malfunction
• Asset Mgmt. for Resource
Scheduling
• Key Industry function
embedded inside
(e.g. Automotive,
Consumer, Retail, Mill…)
• Re-architecture & improved
functions (e.g. Chemicals,
A&D, Oil Gas…)
SAP S/4HANA
• Order Fulfillment &
Delivery Performance
• One Single Invoice
• International Trade
• Predictive Quote-2-Order
• Realtime Inventory
• Embedded TM
• Embedded EWM
• Advanced ATP
• Predictive Stock in Transit
• MRP live
• Detailed Scheduling
Optimizing with PPDS
• Demand Driven MRP
• Complex Manufacturing
Procurement Sales Supply Chain Manufacturing R&D
Finance Service Asset Mgmt. Cross Functions 25 Industries
5INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP S/4HANA supports the intelligent enterprise through four key pillars
Digital Age User
Experience
Intelligent
AutomationEnd-to-End Real-time
Analytics
SAP S/4HANAYour trusted path to an intelligent enterprise
Artificial intelligence and
robotic process automation
eliminate more than half
of manual tasks
Context aware, real time,
predictive insights so you
can make better decisions,
adjustments, faster
Digital assistance and
natural language
conversations for increased
productivity and user
satisfaction
New Business
Models
Rapidly design and execute
new business models and
digital services, based on
advanced end-to-end
processes
6INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital Age User ExperienceThe evolution of SAP Fiori
Casual User
Self ServicesPower User
Mobile
iOS & Android
SAP Fiori
2013
SAPFiori 2.0
2016
This is the current state of planning and may be changed by SAP at any time without notice.
Conversational
with SAP CoPilot Consistent
Intelligent
Integrated
SAP CoPilot
SAPFiori 3
2019+
First step
available today
7INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital Age User Experience Monitor Material Planning / Consumption
8INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital Age User Experience Manage / Monitor Production Orders & Capacity
9INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital Age User Experience Lists & Document Flow
10INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital Age User ExperienceCoPilot – SAP’s Digital Assistant and Bot Integration Hub
Humanized Next-Gen UX with a Conversational UI using
Natural Language Processing functionality
Cross Applications with One Personality and One
Memory across all SAP
Self Learning system using machine learning functionality
to gain knowledge based on historic data and experience
Business Context Awareness understanding the business
situation and pro-actively suggesting solutions
Open and Extensible for Integration to SAP and
Non-SAP Solutions
Enabling our customers and partners to extend CoPilot
Skills through bots, agents and APIs
11INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Lighter and more
neutral, to blend
more into the
background,
giving application
content the
center stage
Digital Age User ExperienceNew SAP Fiori 3 theme: Quartz Light
SAP S/4HANA Cloud 1908
SAP S/4HANA 1909
12INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Intelligent AutomationDelivered and Lab Preview ML use cases for SAP S/4HANA*
* This is the current state of planning and may be changed by SAP at any time without notice
13INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Intelligent AutomationSelf-Service Procurement: Convert Free-text Order Items to Catalog Items using ML
Automatically
investigate
free-text items
Provide auto-
recommendations
for catalog items
to be created
Historical
Free-text
order items
14INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Intelligent AutomationClear Goods Receipt and Invoice Accounts using ML
15INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
New Business ModelsTransform the value chain and business model
From selling products
Sell Produce Deliver Invoice Service
To selling outcomes
Manage and Service
InvoiceClose
ContractProduce Deliver
By providing machines and equipment bundled with services and consumables, companies can charge for outcomes, deliver product usage insights to customers, and create a more sustainable revenue stream.
16INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
New Business ModelsIntelligent technologies: SAP Leonardo everywhere
Accelerate innovation
Applications that deliver intelligence within
core business processes such as Intelligent
ERP and Intelligent HR.
Develop custom solutions
Employ Internet of Things, artificial
intelligence, machine learning, analytics,
microservices, and data management tools
that will be available over the SAP Cloud
Platform to deliver intelligence out of the
box as well as through co-innovation.
Digital boardroom
Connect the enterprise to intelligence for
the CXO.
Innovation services
Combining design-thinking and
Industry accelerators to ensure value from
innovative new technologies quickly and
with reduced risk.
SAP Leonardo
Industry Innovation Kits
Consumer
Products Assets
& Logistics
Discrete
Mfg. Service &
Assets
Chemicals
Spare PartsDiscrete Mfg.
Logistics &
Spare Parts
Retail Assets &
Logistics
Travel &
Transport
Logistics
Utilities
Service &
Assets
Chemicals
Service &
Assets
Embedded Intelligence
SAP Intelligent
Cash Mgmt.
SAP Resume
Matching
SAP Customer
Retention
SAP Global
Track & Trace
SAP Vehicle
Insights
SAP Predictive
Engineering
Insights
SAP Asset
Intelligence
Network
SAP Mfg.
Execution
SAP Predictive
Maintenance
& Service
SAP Service
Ticket
Intelligence
SAP Brand
Intelligence
Machine Learning | Internet of Things | Blockchain | Analytics |
Big Data | Data Intelligence
Digital Boardroom
DEMO 1Service-Oriented Business Model
18INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
End-to-End Real-time AnalyticsReporting & Analytics Examples
19INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
End-to-End Real-time Analytics Embedded Analytics - Incoming Sales Orders
20INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
End-to-End Real-time Analytics Embedded Analytics - Predictive Sales Performance
21INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Group ReportingConsolidation – multiple entities
22INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
What is SAP Analytics Cloud for SAP S/4HANA?
It is MORE! It is EMBEDDED! It GOES BEYOND!
SAP Analytics Cloud
SAP S/4HANA
SAP Analytics Cloud
SAP S/4HANA SAP S/4HANA
… than SAP S/4HANA … into SAP S/4HANA … SAP S/4HANA
23INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP S/4HANA 1909Analytics with SAP S/4HANA – high level architecture
Persistency
Modelling
Visualization
Access
Database tables on SAP HANA
ABAP-CDS-Models(for analytical and transactional purposes)
SAP Fiori UIanalytical apps, reports, KPIs,… delivered as part of SAP
S/4HANA, extensible by the customer
Odata servicesTransient analytical
queries
SAP Analyticsaccess SAP S/4HANA data directly via
Transient analytical queries
SAP S/4HANA
SAP BW/4HANA(for seamlessly extending transactions with data
warehousing workflows)
Database tables on SAP HANA
Intelligent Technologies
24INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP S/4HANA 1909Manage KPIs and Reports SAP Fiori App
ONE application instead of MANY to
Create Group
Create KPI
Create Report
Create Tile/application
Create Report (from main screen)
Associated Groups
Filter Bar and Variants in KPI and Reports screen
KPI Tag in Analytical List Page
Visual Filter in Analytical List Page
Create Analytical List Page (ALP) application
Add KPI TAG in Analytical List Page
Add Visual Filter in Analytical List Page
25INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital BoardroomCustomer example: Financial Overview
DEMO 2Digital Boardroom
27INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP S/4HANA customer momentum is strongas of July 2019
SAP S/4HANA Customers
11,500+Live Customers1st thousand in 2 years 7 months, 2nd thousand
in 10 months, 3rd thousand in 9 months
3,200Deployment Projects
6,200
Reduction in days sales
outstanding
48%
Shorter delivery lead
time
30%
Increase in operational
efficiency
60%
Faster report generation
80%
Faster material requirements
planning
95%Visibility of inventory across
all locations
100%
Examples of SAP S/4HANA benefits
these customers have reported:
28INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Imagine: Anytime financial close
Intelligent System
• Timely insights
• Soft-close, on-the-fly financial reporting
• Real-time decision-making
Benefits (customer: Horizon)
• 75% reduction in days to close
• 25% reduction in G/L and financial closing costs
• New self-service approach with less reliance on
IT to get financial reports
Prior System
• Time-consuming, error prone consolidation process
• Delayed strategic decisions due to lack of
financial visibility
• Limited financial analysis capability
SAP S/4HANA Solution
• Dramatically reduced reconciliation
• Real-time consolidation
• Single source of financial truth
Discover your value: http://impact.s4value.com
Companies who reduced their financial close time:
29INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Imagine: Automated order-to-cash
Intelligent System
• Optimized Accounts Receivable
• Frictionless order processing
• Big reduction in costs, big productivity
improvement
Benefits (customer: Hwashin)
• 15% decrease in processing time for invoices
• 10% reduction in global settlement schedule
• 10% reduction in days sales outstanding
• 25% reduction in A/R costs
Prior System
• Manual effort to interface with external credit agencies
• Inefficient collection and dispute handling
• Un-reliable rule-based approach to invoice matching
SAP S/4HANA Solution
• Full automation of creditworthiness
• Centralized repository
• Eliminate intergroup transactions
• Cost and profitability analysis by vehicle type
Discover your value: http://impact.s4value.com
Companies who automated order-to-cash:
30INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Imagine: Demand-driven supply chain
Intelligent System
• One platform to connect all technology-
supporting areas, such as HR, finance, logistics
and supply chain
• Capture demand insights
• Rapid synchronization to avoid overstocking of
product
Benefits (customer: JTI)
• Synchronize capacity and materials planning
• 5% reduction in inventory
• 6.9% increase in customer order fill rate
• 10x faster MRP run
Prior System
• Rigid supply chains slow to change
• Poor and delayed demand insights
• Complexity and silos
• No demand-driven planning
What’s Possible
• Transform to fluid supply chains and demand networks
• Demand information captured through new signals
• Ability to orchestrate complex networks
• Manage demand-driven planning
Discover your value: http://impact.s4value.com
Companies leveraging new SAP S/4HANA supply-chain capabilities:
31INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
What industry leaders are doing today
Hoerbiger Group
“We want intuitive. We want future-
oriented. We want fast. We want
the modern system, the modern IT
landscape. So, we very quickly
came to the SAP S/4HANA
solution.”
Challenges
Hoerbiger needed to continue planned growth and also transition to public company.
Their broad geographical presence in more than 100 locations required them to
establish a reporting system for plants with globally defined KPIs to improve plant
performance through effective use of assets by preemptive actions on maintenance
and repairs, lower inventory and processing of customer invoices. Their customers
now need products faster and configured to their requirements.
SAP S/4HANA Innovations
Hoerbiger decided to redesign their business processes for standardization and
simplification. They utilized the capabilities of SAP S/4HANA and intelligent asset
management solutions to automate equipment usage measurements and automated
customer invoicing based on usage. SAP S/4HANA also enabled to capture unique
product specifications using Machine Learning, Orchestrated complex networks of
internal/external partners and hence Improved business planning, billing accuracy
and customer satisfaction
Benefits
Moving from SAP ECC to SAP S/4HANA, together with process standardization, has
yielded:
• 14% Revenue increase
• 30% reduction in inventory
• 84% more standardization in processes to bring scalability and agility for business
models
• 42% faster Service Delivery while lowering DSO by 5-10%
Industry
Industrial Machinery
& Components
Employees
7,300
Region
MEE, Austria
32INTERNAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Best Run companies have already transformed with SAP S/4HANA
Traditional Business Models Best Run Business Models
Personalized ‘Smart’ Products & Services
Service
Consumer direct/connected channel
Recognized brand
Resiliency
Multi-enterprise orchestration
Thinking processes & systems
Real-time/Transparency
Mass market products
Equipment
Disconnected intermediaries
OEM
Simple efficiency
Point to point
Reactive Processes & Systems
Latency/Obscured
Impact
Role
Em
plo
ye
e
Overhaul the
corporate
strategy
Make rapid,
accurate,
data-based
decisions
Constantly
deliver
innovation
Continuously improve
operational excellence
Deliver
Customer
Value
• 10% - 20% Increase in revenue
from new offerings
• 10% - 20% Increase in customer
satisfaction
Challenges
• 75% Lower total cost of ownership
• 50% Reduction of data footprint
• 10% - 40% Increase productivity
• 10% - 30% Increase on-time
delivery rates
• 60% - 70% Reduce of total
vendor invoice processing time
• 10% - 15% Reduction of total
logistics costs
• Up to 10% Reduction of total
manufacturing costs
• 40% - 50% Reduction of time spent
on period end close
• 25% - 30% Reduction risk and
compliance costs
Source: SAP Performance Benchmarking