transform sales with sap s/4hana - sapsa kraftfullt … sales with sap s/4 hana ... based billing...

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Transform Sales with SAP S/4HANA®

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White Paper Background and Key DefinitionsThe information outlined below is helpful to understand the contents of this value proposition white paper. It gives clear details on the objective and scope of the paper. Key definitions are also provided for select sections of the paper to provide further clarification.

DELIVERABLE OBJECTIVE

Provides information on the value in moving from an ERP on a traditional database to SAP S/4HANA® and cloud and line-of-business (LoB) solutions

KEY DEFINITIONS

Within the process and sub-process deep-dives, there is detailed content in table format articulating the following:

Pain points Represents major customer business and IT challenges

Current state with ERP on traditional database Represents the ERP capabilities that are available on a traditional database

SAP S/4HANA capabilities Represents the capabilities shipped with the latest release of SAP S/4HANA

Cloud/LoB + SAP S/4HANA capabilities Represents all other solutions that can be integrated with SAP S/4HANA and provides business value. For example, SAP S/4HANA + the SAP Integrated Business Planning solution, or SAP S/4HANA + the SAP Manufacturing Integration and Intelligence (SAP MII) application, etc. These solutions are not embedded in SAP S/4HANA, but integration scenarios exist for these

Planned innovations and future direction* Represents new functionalities planned for future release of SAP S/4HANA, or new integration possibilities planned for SAP S/4HANA

With the value proposition section, all quantified benefits are conservative estimated improvement ranges tied to the top value drivers. They are based on early adopters or new developments/enhancements of SAP S/4HANA + LoB and cloud enhancements that can drive value. Keep in mind that these should be used as a guide. We recommend working together to assess your current maturity and the value of moving to S/4HANA in order to develop a personalized business case.

Detailed road map available on SAP.com (Customer Login Required)

This document and SAP’s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, included but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.

http://www.sap.com/roadmaps

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Agenda

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SAP S/4HANA Sales Capability and Value Proposition Overview 4

Order and Contract Management Deep-Dive 8

Inventory and Basic Warehouse Management Deep-Dive 11

Billing and Invoicing Deep-Dive 14

Value Proposition 16

Future Road Map 17

Customer References 18

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SAP S/4HANA Sales Overview

TRANSFORM SALES WITH SAP S/4 HANA

The digital economy is changing your customers’ buying behavior. Living in a world where sensor, and social structured and unstructured data flows are just one click away, customers expect individualized products and a unified buying experience on any device. Digital technology is changing the game, and companies that adopt new sales and distribution strategies are changing the rules. To succeed, companies need to streamline their complete digital value chain from marketing, sales and services, to billing, in order to drive value and optimize customers’ experience across every channel of interaction. Leading companies are learning what new technologies can do for their sales and distribution organizations.

At the early stages of the customer journey, new innovative applications can simplify the time-consuming tasks of initiating contact with a lead and then qualifying, following up, and sustaining the conversation. This is shifting the job of a sales person to more added-value activities. Salespeople can focus on building relationships with prospects, with personalized recommendations in hand, and focus on increasing loyalty. They need to be equipped with the tools to provide greater insights into the needs of customers, their buying patterns, and the relative potential value of different customers.

We also see a step-change in the cost and effectiveness of distribution and billing processes. Your customers expect shorter and more reliable delivery times for goods, and much simpler ordering, invoicing, and payment processes. At the same time, they expect more individualized products and services; for certain industries, this individualization has reached a lot size of one.

The additional complexity that this level of personalization causes in sales and supply chain processes can only be resolved through an integrated, real-time technology platform such as SAP HANA.®

SAP S/4HANA enables substantial increases in the productivity of your internal sales workforce. It provides detailed insight to action summaries and increased automation tailored for the internal sales representative. Advanced available-to-promise capabilities will allow sales employees to check real-time availability of goods across warehouses, reserve inventory based on customer priorities, propose and reschedule deliveries, enabling companies to best serve their most profitable customers. Integration between SAP S/4HANA Sales and the SAP® Hybris® cloud solutions provide companies with real-time, context-based, predictive customer engagement analysis for individualized marketing campaigns. Additionally, it enables unified multichannel e-commerce and flexible billing for B2B and B2C businesses with business network collaboration.

Soon, the technologies offered by the SAP S/4HANA suite will enable companies to introduce more autonomous business processes by integrating predictive analytics, machine learning, and natural language processing. The metering and usage- based billing capabilities of SAP S/4HANA will help transition classic product businesses into more profitable outcome-based service organizations. Additionally, the Ariba® Network allows seamless integration with SAP S/4HANA Sales to open an additional sales channel with access to thousands of new prospects. Companies will have the potential to extend their sales across virtually every global region. All SAP sales and distribution solutions will be connected in real time to support companies with a successful digital transformation.

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Traditional Landscape Digital Customer Engagement Landscape

CRM. WEB CMS. MOBILE. MARKETING. OMS. STORES. CONTACT CENTERS. ERP. ETC.

* Can be part of SAP S/4HANA enterprise management, but licensed separately.

Mostly B2C

B2B & B2C

Mostly B2B

Web Mobile In Store/ Branch

Contact Center

Digital Goods

Market- places

Internet of Things

Social Media

SMS/Notifications

Search KW/Ads

Digital Adv.

Email Printing Agent Tools

Front-End Solutions

SAP HANA Cloud Platform

Retail (POS / CAR)

Other Industry Capabilities

Customer Experience

SAP Hybris as a Service on SAP HANA Cloud Platform

Sales Marketing

Order and Contract Management

Inventory and Basic Warehouse Management

Billing and Invoicing

Commerce Billing*

Industry Solutions SAP Hybris Solutions

SAP S/4HANA

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SALES CAPABILITIES

Outlined below are the primary capabilities for sales where value can be achieved through SAP S/4HANA + SAP cloud and LoB solutions.

Order and Contract Management

• Sales master data management

• Sales contract management

• Subscription contract management

• Sales order management and processing

• Claims, returns, and refund management

• Sales monitoring and analytics

• Billing and invoicing for physical goods

• Subscription billing and invoicing

• Goods issue

• Goods receipt

• Basic warehouse management

• Basic shipping


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SAP S/4HANA SALES VALUE PROPOSITION SUMMARY

SAP S/4HANA enables companies to substantially enhance, simplify, and visualize the entire sales process from prospect to payment.

• Reduce sales-related costs. Give the sales team a complete view of the sales process and facilitate ad hoc collaborations to accelerate sales decision-making, for example related to contracts, pricing, and negotiation.

• Reduce inventory-related costs. Simplify and visualize processes related to order fulfillment tracking. Use instant communications between key stakeholders to take actions immediately and reduce cycle times. Respond quickly to unforeseen events (e.g., delayed shipments or changes in customer orders) through increased inventory visibility. Improve order fulfillment and allow for inventory optimization along the supply chain and across warehouse locations.

• Reduce days sales outstanding. Enable faster billing with reduced administration. Introduce flexible and dynamic search capabilities of the customer invoice list. Leverage automated subscription billing to reduce errors, speed up processing times, and enable new business models.

• Increase market share, share of wallet, and customer satisfaction. Gain a single view of the customer and enable better engagement along the buying journey, including data from Web streams and social channels, past interactions, propensity scores, and “in-the-moment” interactions.


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Typical Pain Points Current State with ERP on Traditional Database

SAP S/4HANA Enhancements

Planned Innovations and Future Directions

Business Benefits

Order and Contract Management Deep-Dive

Lack of visibility into the order management system results in slow resolution of order fulfillment issues with risk of delayed delivery

High data volume and low flexibility in rebate processing results in time-consuming and error-prone processes

• Responsible employee has to check multiple reports to get a holistic view of all process-related issues

• Prior communications and decisions cannot be tracked in the system

Ability to offer rebates to additional customers is limited as invoice history has to be rebuilt in batch runs; rebate process lacks possibility to use sources other than customer invoices as basis for rebate calculation

• Prioritized list with key characteristics of outstanding sales orders for internal sales

• Relevant insights, contacts, and collaboration features for internal sales

More flexibility with settlement management, as rebate index does not need to be rebuilt when past (retroactively) or new customers become eligible for rebates; additional source for rebate calculation allow improved business models

• Improved SAP Fiori® launchpad access for these business roles: internal sales representative, sales manager, and billing clerk

• Ariba seller-side integration to SAP S/4HANA

• Increased customer satisfaction

• Increased on-time delivery

• Improved internal sales productivity

More flexible pricing (rebates) allows for more targeted business models

Cloud/LoB Extension Enhancements

(continued next page)

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Business Benefits

Limited insights in process cycle time hampers the improvement of the sales process quality

Inability to see and manage one single quote, contract, and invoice statement listing all provided services, projects, and products that are sold together

No available capability for process performance monitoring in SAP ERP (only with additional process observer feature)

Limited support for complex business-to-business (B2B) agreements and contractual relationships, which combine terms for physical goods and services in a single contract and invoice

Prebuilt content to monitor and analyze order-to-cash process performance; allows insights into process cycle times and enables process manager to improve the service level for customers

Master agreements for large enterprise customers managed by bundling one-time sales of products with projects, service offerings, subscriptions, and usage-based services in one contract

The SAP Customer Relationship Management (SAP CRM) application: ability to support a single contract for physical goods and services

Single receivable posting can be generated combining physical goods and services into the same invoice


Improved sales effectiveness and reduced selling, general, and administrative (SG&A) expenses

Increased contract management efficiency resulting in reduced SG&A


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Business Benefits

• Difficulty in getting all customer information, which could lead to customer churn and a subsequent loss of revenue

• Multiple, disparate front-end solutions with incomplete integrations lead to organization not meeting its full revenue potential

Little consolidation of customer information; inaccurate, outdated customer data

Single consolidated view of customer information through integration with SAP Hybris Marketing

SAP® Hybris® Marketing: Get customer information from all company-owned and external sources (e.g., commerce, Web streams, social), do scoring and profiling, and trigger tailored cross-channel real-time marketing activities

In combination with SAP® Hybris® Cloud for Sales, trigger sales activities and leads according to customer signals


Improved customer satisfaction

Lack of complete visibility from opportunity to delivery leads to a loss of revenue

Order capture in SAP Hybris Cloud for Sales while basic order fulfillment capability in ERP

• SAP Hybris Cloud for Sales: Provide sales professionals access to pricing, quoting, and mobile Web- based interface

• Provide customers with contextual, consistent, and relevant sales experiences, regardless of channel or device, throughout the customer journey

Enhance integration with SAP S/4HANA to capitalize on the new sales performance monitoring features in SAP S/4HANA

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Business Benefits


Lack of accurate, up-to-date inventory data, lead times, and procurement timing leads to an inefficient planning process; lack of live visibility into inventory reduces throughput

Complexity in valuating inventories in multiple currencies and for different valuation methods (legal/profit center/reporting purposes)

Inventory analysis is possible via a separate analytical system with data integration issues and data latency; inventory throughput may reach boundaries depending on business scenario

• Material ledger activation available along with functionality of actual costing; however, inventory valuation data exists in multiple aggregated tables

• This leads to slow processes (actual costing, redistribution, revaluation) and inefficient reporting

Enhanced functionality to manage inventory at the lowest level for larger data volumes, enabling personalization and other new business models

• Reduced levels of inventory required

• Reduced inventory obsolescence and waste

• Prerequisite for more targeted one-to-one sales

• Reduced supply chain planning costs

• Better visibility into actual profitability allows for margin optimization

Live inventory transparency and management through a redesigned data model; ability to change lot size to “one,” enabling better customer service

Material ledger available as a default option; all inventory valuation data exists in material ledger, removing all redundancies; faster actual costing due to optimized code based on SAP HANA, faster reporting as needed for actual costing, with multiple currency and valuation methods


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Business Benefits

Inefficient strategies to sell low-availability products according to rule-based strategies

• Less visibility in warehousing and shipping operations

• Lack of real-time inventory monitoring results in less-than-optimal on-time delivery performance

Basic sales allocation mechanism

Visibility into overall delivery progress across system boundaries; overview of shipping status is achieved through a messaging interface between ERP and the SAP Extended Warehouse Management (SAP EWM) application and the SAP Transportation Management (SAP TM) application

Easy-to-use and intuitive SAP Fiori apps for inventory managers, warehouse clerks, and shipping specialists to enable complete visibility into inventory

• EWM – SAP Extended Warehouse Management integrated with SAP S/4HANA, supporting all levels of warehouse complexity

• TM – Integrated SAP Transportation Management with SAP S/4HANA, supporting distribution and logistics holistically

• SAP EWM embedded in SAP S/4HANA core to reduce interface complexity and enable change management of deliveries

• SAP TM embedded in SAP S/4HANA core to significantly reduce interface complexity and enable additional integrations

Sales order confirmation based on sales allocations via sales rules, such as fair share, ranked, or prioritized share


Optimized profitability and customer satisfaction

• Increased on-time deliveries reduce customer churn

• Reduced inventory costs through faster deliveries


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Business Benefits

• Lack of visibility across all inventory results in unnecessary stock-out situations and delivery delays

• Complexity of order fulfillment systems hampers ability to fulfill orders from the entire network

• Inability to substitute products automatically according to business rules

Basic available-to-promise (ATP) capabilities for customer orders, deliveries, and production orders, including back-order processing

• Mass product availability check enabled by the SAP HANA platform for sales, planned, and production orders

– Advanced ATP check for all items of an order at once

– Performance improvements for releasing large production orders

• Improved order promising in near-term horizon based on short-term changes

• On-time delivery for important sales orders through SAP Fiori app for release for delivery

• SAP Fiori app to enable timely actions on short-term supply and demand changes

• Flexible order confirmation based on business priorities in advanced ATP back-order processing

• Rule-based-ATP

• Increased ability to ship product increases revenue and reduces order cancellations and customer churn

• Increased satisfaction of high-value customers through business rule prioritization

• Reduced TCO through landscape simplification


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Business Benefits

• Lack of adequate reporting and operational tools to analyze, review, and control billing processes

• Inability to manage a high level of granularity for discrete billable items associated with an invoice

No robust analytical tools for billing administrators to have quick insight into the ongoing billing process

• Specialized SAP Fiori apps streamline the viewing, adjustment, and correcting of invoices

• SAP Fiori apps for the billing contract accounts receivable manager

• Integration with SAP® Hybris® Commerce, allowing for more complete picture of product content (images, videos, descriptions, translations, etc.)

• Increased billing staff productivity

• Improved subscription invoice processing time

• Invoices go out sooner: reduced days sales outstanding (DSO)

Native SAP Fiori apps simplify the administration of standard billing apps with user-friendly operational tools

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Business Benefits

• Lack of ability to handle billing for subscription and usage-based services, and inability to combine them with physical goods

• Inability to combine billing for physical goods and services on a single invoice

Difficulty in generating invoices and running bulk collection and payment processes in a timely manner

Master agreement contract supported for B2B service providers

Normal billing runs well, but bulk processes are considerably slower using traditional relational databases

Faster and better billing, accommodating bulk processes through enhanced capabilities of SAP HANA

Generate a single invoice from SAP S/4HANA enterprise management combining goods and services on a single bill

• More business model flexibility

• Increased customer satisfaction

Reduced DSO for large customer volumes

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SAP S/4HANA Sales Value Proposition

Strategy Enablement

BusinessBenefits

RiskManagement

EmployeeEngagement

STRATEGY ENABLEMENT

RISK MANAGEMENT

BUSINESS BENEFITS

EMPLOYEE ENGAGEMENT

• Accelerate new market entry and introduce subscription-based business models

• Optimize synergies with new business partners, acquisitions, or joint ventures

• Change orders on the fly based on changing market conditions

• Improve risk and fraud management

• Reduce revenue leakage

• Increase financial compliance

• 10–30% increase in on-time delivery

• 25–30% reduction in inventory levels

• 10–20% increase in customer satisfaction

• 10–15% improvement in internal sales productivity

• 25–30% improvement in subscription invoice processing time

• Faster user adoption through intuitive SAP Fiori user experience (UX)

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* Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA + LoB and cloud capabilities. As each enterprise is at a different level of maturity, our recommendation is to work with you to determine the value proposition for your enterprise.

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SAP S/4HANA Sales Future Road Map

Digital CoreSales

SAP HANA Platform

Security

SUPPLIERS & NETWORKS

WORKFORCE ENGAGEMENT

CUSTOMER EXPERIENCE

IOT & BIG DATA

Integrate with the SAP Ariba Network (Seller side integration)

• SAP Transportation Management

• SAP Extended Warehouse Management

• SAP Financial Services Network

• SAP Global Trade Services

Integrate with SAP Fieldglass solutions

Integrate with:

• SAP Hybris Cloud for Sales

• SAP Hybris Cloud for Service

• SAP Hybris Commerce

• SAP Hybris Service (including SAP Contact Center)

• SAP Hybris Marketing

• SAP CRM (on premise)

Order management extensions:

• Configure Price Quote

• Order Orchestration

• Service and Usage Billing

• Omnichannel Retail

• Internet of Things sales processes

Integration capabilities for our ecosystem to extend the business process of SAP S/4HANA Sales on the SAP HANA Cloud Platform/SAP Hybris as a service.

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Customers are Achieving Value from SAP S/4HANA

GENERAL DATATECH

• Reduced year-end financial close from 3.5 months to real time

• Reduced time for quotes from hours to minutes

General Datatech (GDT) has expertise in the delivery of enterprise network, collaboration, mobility, and data center technologies to service providers and businesses. GDT aimed to update its enterprise resource planning (ERP) solution and prepare for future requirements and get analytics and real-time information from a single system – a critical business goal for the C-level team.

Click here for General Datatech source reference.

Company General Datatech

Industry High tech

SAP Solution SAP S/4HANA

Enterprise Management

Customer Website www.gdt.com

“ Customer satisfaction is huge. We can lose some large customers if our response is too slow. So we decided for SAP S/4HANA and SAP Fiori. We also see huge opportunities in analytics; this part of our business is exploding.”

—Jonathan Pendrich, Managing Principal, GDT

https://www.gdt.com

https://dam.sap.com/mac/download/a.htm?c=46&k=kSSNXCikloiNiffliNi2N0F7Vm0DRt7f57nRf7SNmf15aRN0l7

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CONVERGENT SYSTEMS

• 48% reduction in days sales outstanding

• 20% improvement in productivity for sales order processing

Clients around the world rely on Convergent to transform the enterprise experience with a simple user experience and mobile solutions. Growing a business by 200% annually presents many challenges, especially while expanding into other countries and taking on the additional foreign exchange risk.

Aiming to simplify the complexity of its expanding business, Convergent turned to SAP.

Click here for Convergent source reference.

Company Convergent Systems

Industry Professional services

SAP Solution SAP S/4HANA

Enterprise Management

Customer Website www.convergent.com.sg

“ Using SAP S/4HANA is like going from a tricycle for small-business accounting software to a race car. It will help Convergent continue our fast-paced growth and simplify our business processes.”

—Shaun Syvertsen, Managing Partner, Convergent IS

Customers are Achieving Value from SAP S/4HANA

https://www.convergent.com.sg

http://sap-espresso.com/viewStory/521

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transform sales with sap s/4hana - sapsa kraftfullt … sales with sap s/4 hana ... based billing...

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