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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 1 Public

Speaker’s Name/Department

Date, 2015

With SAP HCM Cloud Service and Support S/4HANA Overview

Uwe Grigoleit

Head of S/4HANA Business Development, SAP SE


WHAT IF TOMORROW’S

WEATHER SHIFTED YOUR

INVENTORY TODAY?



The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the

permission of SAP. 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 document or any related

presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation

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

document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This

document 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 document is for informational

purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this

document, except if such damages were caused by SAP´s willful misconduct or gross negligence.

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

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

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

Legal disclaimer


The Digital Core

Immediate

Empowering business users with

insights to act in the moment.

Intelligent

Beyond automation,

to predictive suggestion.

Integrated

Not only between your departments,

but connected to the world.

HANA Platform


Digital Core for a digital transformation S/4HANA innovations fall under five pillars

Simple data model SAP S/4HANA simplifies the

underlying data model by removing

aggregates and indexes.

Modern user experience SAP S/4HANA is delivered with a

new and modern user experience

that works across devices.

Responsive and innovative

business solutions SAP S/4HANA comes with innovative

and feature rich features such as

recommendations, predictions, and

simulations.

Non-disruptive journey SAP S/4HANA can be deployed in a

non-disruptive manner.

Cloud First, on premise follows SAP S/4HANA is developed for

cloud first, but not cloud only

Security

SAP HANA Platform

Digital Core

Suppliers

& networks

Customer

experience

Workforce

engagement

loT

& big data


SAP S/4HANA Enterprise Management – the Suite picture

SAP S/4HANA MARKETING AND

COMMERCE

SAP S/4HANA HUMAN RESOURCES SAP S/4HANA MANUFACTURING SAP S/4HANA SUPPLY CHAIN

SAP S/4HANA SALES

SAP S/4HANA FINANCE

SAP S/4HANA SERVICE

SAP S/4HANA SOURCING &

PROCUREMENT

SAP S/4HANA ASSET MANAGEMENT

Digital Core Enterprise Management

SAP S/4HANA RESEARCH &

DEVELOPMENT

Products

Suite

Products

Suite

INDUSTRIES

• Supplier Collaboration

• Business Network

• Core human resources and payroll

• Talent management

• Time and attendance management

• Human capital analytics

• Integrated business planning

• Environment, health, and safety • Product safety and stewardship

• Service management

• Service master data management

• Service parts management

• Service agreement management

• Maintenance Management • Product development and project

control

• Production Engineering

• Accounting and financial close

• Treasury and financial risk

management

• Receivables management

• Accounting and Closing Operations

• Accounting

• Cost management and profitability

analysis

• Time and Attendance

Management

• Supplier information and master data

• Operational procurement

• Invoice and payables management

• Operational sourcing and contract

management

• Production Orchestration and

Execution

• Quality management and

compliance

• Inventory and basic warehouse

management

• Production planning

• Order and contract management

• Sales planning

and performance management (ICM) • Billing and revenue innovation

management (BRIM)

Cloud for Service

Cloud for Marketing

Cloud for Sales

• Extended Warehouse Management*

• Advanced ATP*

* Roadmap

• Supply Chain Control Tower

• Integrated Business Planning

• Extended Warehouse Mgmt

• Transportation Mgmt

• Manufacturing Integration and

Intelligence

• Manufacturing Execution System

• Quality Issue Management

• Mobile Service

• Predictive Maintenance

• Asset Networks

• Collaborative Product Development

• Product Network

• Manufacturing Planning and Execution*


Key Lines of Business Dimensions of Value

Sales & Distribution

Asset Management

Finance

Research & Development

Service

Sourcing & Procurement

Supply Chain

Manufacturing

Digital Core

• Reduce Customer Churn

• Reduce Sales Cost

• Reduce Order Management Cost

• Reduce Cost of Processing Returned Goods

• Reduce Un-Planned Downtime Or Outages

• Reduce Asset Service and Maintenance Costs

• Reduce Asset Risk

• Reduce EH&S Penalties & Fines

• Reduce EH&S Management Cost

• Reduce Days to Close Annual Books

• Reduce Days Sales Outstanding (One-Time Benefit)

• Reduce Finance Cost

• Reduce Losses due to Fraud

• Reduce Audit Cost

• Increase Revenue from New Products

• Optimize Research and Development Expense

• Reduce Engineering Change Cost

• Reduce Revenue Leakage

• Reduce Service Delivery and Support Cost

• Reduce Cost of Non Compliance to Service Contract

• Reduce Service Parts Inventory Carrying Cost

• Reduce Procurement Function Costs

• Improve Supplier Compliance (Spend Management)

• Improve User (Spec & Vendor) Compliance

• Increase Sourcing Savings by Enhanced Supplier Visibility

• Reduce Accounts Payable Error

• Reduce Revenue Loss Due To Stock-outs

• Reduce Days In Inventory

• Reduce Inventory Carrying Cost

• Reduce Inventory Obsolescence

• Enhance Supply Chain Planning Productivity

• Reduce Total Logistics Cost

• Reduce Total Manufacturing Costs

• Reduce Manufacturing Cycle Time

• Reduce Scrap Value

Based on SAP expert and customer feedback


Enter Material Order Choose best supplier

and complete material

order entry

Review Material Shortage

Select Supplier

Analytics and

Insights

Now All On

One Screen

Purchase Manager

Check Budget

Overview

Review Detail

Report

Faster customer delivery

Larger average deal size

Fewer warehouse stock outs

Check Average

Supplier Delivery

Performance Cross Sell

*Screenshots shown are for demonstration purposes only and are not final product commitments

Contextual insights at the point of decision


The Power of Pumpkin

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12 Public © 2016 SAP SE or an SAP affiliate company. All rights reserved. 12 Public

Improvement ranges are SAP estimates for a hypothetical ~$3B Manufacturing company as sample.

IMAGINE

• A national coffee chain unveils a new fall item, featuring pumpkin.

But their new supplier is unable to meet overwhelming customer demand…

WHAT’S POSSIBLE

• The procurement manager can analyze in real time why the supplier is

struggling based on their past historical performance data. SAP S/4HANA offers

several solutions, including ordering more, or sourcing a new supplier.

THE IMPACT

• Armed with this information, the procurement manager can bring in a secondary

vendor to compensate for the shortfall, soon replenishing stores with the strongest

demand, delighting customers and increasing sourcing savings up to 10% *


SAP S/4HANA Capabilities Highlights for Operational Procurement

» Leverage Catalog Buying in Self service requisitioning processes

» Monitor critical business events, purchasing spend and supplier

performance in Procurement Overview Page

» Increase supplier relationship and performance by using Activity and

Task Management

» Leverage Purchasing Category in real-time analytics to monitor the KPIs

along business responsibilities

» Visualize planned spend versus actual spend per purchasing category

» New Fiori Apps for Sourcing and Contract Management: Manage

Request for Quotation and Supplier Quotation

» Create Sourcing Request in SAP Ariba Sourcing out of

SAP S/4HANA

» Structure and merge material groups into the new business entity

Purchasing Category


S/4HANA for Sourcing & Procurement Function Alliance Contract Manufacturing (ACM) rides the digitization wave

• $100m revenue

• Manufacturer and distributor

of precision manufacturing

solutions

• 800 employees in Asia and Europe

Products

• Photonics, microwave, optics

components

• Electromechanical modules

• Value added assemblies

• Kodak supplier awards

• Critical precision components

• Precision Optics and Electromechanical assembly

• Module tuning & integration

The solutions implemented so

far have positively impacted all

business functions

throughout the value chain for

ACM.

Erik Looi Thong Chin, CIO

“

“ 20% Procurement

savings

30% Lower

inventory

50% Lower

uncollectable

AR


automated, paperless

processing of business

documents (PO = SO)

Value achieved by SAP S/4HANA

BUYER

SUPPLIER

Automated, paperless

processing of business

documents

Increased productivity

due to easy clearing of open

items

Effective use of

free cash

Reduce Days

Sales Outstanding

No-touch Invoice postings

and Invoice exception

handling only

Quota of discounts realized

due to timely or early

payment

Overview payment dates

for all the customers Solving cash shortages

Order Collaboration Invoice Collaboration Discount

Management

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 16 Public © 2016 SAP SE or an SAP affiliate company. All rights reserved. 16 Public

Driving Change

IMAGINE

• A car manufacturer produces multiple models each requiring an average

of 3,500 materials

• With an average daily production of 500 cars the manufacturer has to process

over 10 million material postings per day.

• Technology limitations of the past do not allow such large transactions to be

processed in real time, preventing Just-In-Time (JIT) deliveries

WHAT’S POSSIBLE

• With SAP S/4HANA postings can now run in real time providing the car manufacturer

the ability to get instant visibility into its material ledger at any time and allowing it to

respond more accurately to production issues.

THE IMPACT*

• Increase material posting throughput by ~18%

• Reduce Manufacturing costs by ~3%

• Reduce Manufacturing Cycle Time by ~7%

• Reduce Scrap Value by ~ 25% Improvement ranges are SAP estimates for a hypothetical ~$3B Manufacturing company as sample.


Empower the business with Analytical Insight

Spot stock expiration and stock-availability issues in real time

in context of urgency and priority

Analyze immediately the percent of available product stock in

this location expiring over time and profit-and-loss implications –

assess options to address the issues with one click

Evaluate and filter on actions that may be taken, such

as order changes, marketing campaigns, donations, or scrap,

ranked in order of feasibility and viability

Solve the problem by selecting the combination of actions

resulting in the highest ROI – immediately initiate workflow to

execute against those actions

1 2

3 4


Empower the Business with decision support

Decision Support

Simulation


S/4HANA for Sales Function MEMEBOX doubles in size with S/4HANA

With this stable platform and

approach, the Korea team is able to

support MEMEBOX in developing

innovative business processes

using SAP S/4HANA Finance, which

is highly valuable as a quickly

growing company. We look to SAP

as a strategic partner that can guide

us toward digital transformation.

Rio Kim, CFO, MEMEBOX Inc.

.Headquarters

Seoul, South Korea (MEMBOX Inc.)

San Francisco (MEMBOX Corp.)

Industry

Retail

Products and Services

Beauty products

Employees

300

Revenue

US$24 million (MEMEBOX Inc.)

US$40 million (MEMEBOX Corp.)

Web Site

us.memebox.com

Partner

Global Service & Support

organization

“

“

Objectives

• Improve the accuracy of inventory

• Increase insight into logistics information

• Create a secure foundation for global business

expansion

Why SAP

• High visibility and strong control of financial and

logistics information in real time with the SAP®

S/4HANA Finance solution

• Support for the entire application lifecycle from

implementation to operation

Resolution

• Deployed SAP S/4HANA Finance using the

SAP HANA® Enterprise Cloud service in just

five months

• Minimized deployment risk and eased change

management with greater visibility of processes

and functionality using a system based on the

“best model company” and SAP Application

Management services

• Improved competitive advantage, accelerated

growth, and penetrated new markets with

stronger logistics governance and supply control

• Enhanced insight into customer interactions at

every touch point, providing sales real-time

visibility into stock information

Future plans

• Roll out the SAP ERP application in China and

other markets to support global business

expansion

• Deliver best-fit customer insight solutions with

marketing analytics, performance management,

customer insights and segmentation, and

merchandising analytics

50% Reduction in

the closing

period

100% Improvement in

inventory accuracy

50% Increase in sales

productivity with on-

the-go data access

30% Shorter delivery

lead time to

customers

100% Increase in revenue

since the launch of

SAP S/4HANA Finance

http://us.memebox.com/


S/4HANA for Sales Function Allowing O.C. Tanner to continue its transformation

• $0.5B leader in the employee

recognition industry

• “We are a manufacturing

company transforming into a

high tech company”

• Detailed story

S/4HANA

S/4HANA upgrade allows O.C.Tanner to more fully utilize their

ERP and achieve the transformational objectives discussed

in this document.

ADVANCED CONFIGURE, PRICE, AND QUOTE

Catalog and customer service materials can be easily updated

and maintained via CPQ capabilities. No longer will O.C.Tanner

have to rely on custom built applications.

CUSTOMER ENGAGEMENT AND COMMERCE (CEC)

This solution offers O.C.Tanner an expansion of the company’s

digital capabilities in eBusiness. It simplifies customer interactions

and transactions across various channels.

Performance Management

Services & Program Tailoring

• Leverage O.C.Tanner Institute to balance

standard offering and customer tailoring

• Full program visibility to customer’s employees

• Full self-service capabilities

Customer experience

• Short delivery times on 3rd party merchandise

• Accuracy and rich details on merchandise

• Links to client HR team / mobile

Catalog Management

• Rich and consistent catalog management

capabilities

• Automatic updates on SKUs and pricing

Pricing

• Extensive capabilities for different

pricing levels (“multiple prices”)

• Real-time and dynamic updates

• Multi-layer supplier discount strategies $30M long-term benefit estimated from the IT transformation

Our process was archaic…and

we fell in love with S/4HANA,

CPQ, and Hybris because we

saw how then can simplify

our business.

Ethan Kennelly, Director of Enterprise

Architecture and Program Management

“

“ BUSINESS INTELLIGENCE

https://jam4.sapjam.com/wiki/show/C3otHoUwDGRkwLXEOcEzAI?_lightbox=true


S/4HANA for Sales Function Benefits estimated for a leading consumer good manufacturer

Deliver predictable, profitable, and sustainable core business

Expand geographical footprint in focus markets

Create and expand a consumer-centric portfolio

across key geographies

Win with knowledge, technology, and capabilities

(people, process, and tools)

Drive industry-leading growth through innovation

(product and beyond)

CO

RP

OR

AT

E S

TR

AT

EG

IES

Global one-time benefits USD Millions

Total

one-time

benefits

Reduce

days sales

outstanding

89-155 40-81

Reduce days

in inventory

49-74

Global annual pre-tax benefits USD Millions

Total

annual

benefits

Revenue

lift

53-76 16-24

COGS and

SG&A

reduction

37-52

Benefits driven primarily by the following solutions:

• SAP S/4HANA

• SAP Trade Promotion Management

• Treasury applications from SAP

• SAP SuccessFactors

• A multibillion dollar company

• A leader in various consumer

brands

• Global distribution network

• Highly diverse consumer base

and business highly seasonal

and holiday-dependent


Sales Order Management : What you get…

Experience Transformation: Sales Order Fulfillment: DEMO / VIDEO

Measure SAP ERP

Sales Order Fulfillment

Sales Order Fulfillment

Improvement

Factor

Duration 4.15 min 2.20 min 1.9 x

Clicks 70 42 1.7 x

Number of Apps 8 2 4 x

Fields filled 14 3 4.6 x

Use Realtime Alerts

instead checking

yesterdays’ reports

Check impacts and

Act on any issue

within seconds

Make sure to solve

the biggest issues

first

https://www.youtube.com/watch?v=mO87IYOn75U




TCO GROWTH INCREASING EFFICIENCY

Setup Testing Data footprint

Native

integration

Landscape

simplification

Asset

utilization

REDUCING COST

101010

101010

101010

Reducing TCO and Increasing Growth


“S/4HANA IS EMPOWERING

EMPLOYEES WITH TOOLS AND

INSIGHTS THAT DRIVE NEW WAYS

OF THINKING…”

– Steve Strout, Vice President corporate systems, SABRE

SABRE


300 Integrations

24 Distinct systems

consolidated

into three

27% Reduction in

custom objects


EFFECTIVE GOVERNANCE

FLEXIBLE DEPLOYMENT

FAST INNOVATIONS

DYNAMIC EXTENSIBILITY GUIDED CONFIGURATION

NATIVE INTEGRATION

cloud and hybrid

quarterly innovation cycle

extensions via SAP HANA

Cloud Platform

fully managed by SAP

integration with SAP SuccessFactors

Employee Central, SAP Ariba Network,

SAP hybris Marketing

Ready-to-run SAP Best

Practices business processes

Enterprise Management Cloud

Professional Services Cloud

Marketing Cloud

Digital transformation delivered through the Cloud


Starting your journey to SAP S/4HANA

• Start a new implementation

and/or bring an existing

landscape back to standard

• Retain existing processes

and migrate from any DB to

HANA

• Adopt and reimage business

processes incrementally

• Re-imagine the business

• Plan the digital

transformation

• Design and Execute with the

help technical and functional

support services from SAP

• Identify business

requirements

• Build the business case

• Develop an SAP

S/4HANA adoption strategy

& roadmap

First steps: Your path: The roadmap Options:

• Planning & safeguarding

• Technical

implementation

• Functional implementation

• Co-innovation

Innovation

Strategy and

Roadmap

New implementation

Landscape transformation

System conversion

On premise

Cloud

Hybrid

4

3

2

1


Next Steps

HOW CAN I LEARN MORE? WWW.SAP.COM/S4HANA

WWW.SAP.COM/roadmaps

http://www.sap.com/S4HANA





Date, 2015

With SAP HCM Cloud Service and Support The Digital Core



Date, 2015

With SAP HCM Cloud Service and Support Appendix


Comparing Traditional ERP to a Digital Core

Traditional ERP

Siloed Data

Partially connected

Reporting tool

Digital Core

Live Business

Unified data

in real time

Fully connected to

customers, suppliers

and workforce

Intelligent, predictive

tools based on

patterns and trends

35,000 SAP customers already have an ERP core

Covering

25 10 120

Lines of

Business

industries countries


© 2016 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate

company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its

affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and

services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as

constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop

or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future

developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time

for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. 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.

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