ROAD-2-HANA MeetingSAP Downers Grove – November 4, 2015

Building the Business Case for S/4HANAWhat is it all about? What should we do?Kevin Reilly, ASUG Community AdvocateS/4HANA & HANA Platformkevin.reilly@asug.com

S/4HANA Introduction Differences between Suite on HANA and S/4HANA Deployment Options

The S/4HANA Implementation Migration planning Example migration schedule

The S/4HANA Business Case Components of a good business case Business benefits Example business scenarios

What you will learn today

2

S/4HANA Introduction

The successor to SAP R/3 and SAP Business Suite New SKU and Code Fork Available on the SAP HANA database

S/4HANA themes: Renewed interface with Fiori UX Simplified structure with SAP HANA Cloud deployment first

What is S/4HANA?

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Runs on AnyDB

Built for lowest capability database

Limited use of database functionality

Client/Server SAPGui User Interface

SAP R/3

SAP HANA only

Built using all capabilities of SAP HANA

Full use of database functionality e.g. geospatial, graph

Fiori User Experience

SAP S/4HANA

SAP R/3 vs S/4HANA

5

S/4HANA Deployment Options

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Cloud• Shared HANA multi-tenant DB• HANA Cloud Platform

Extensions• Quarterly Release Schedule• 100% Managed by SAP• Automatic Updates

On-Premise• On-Premise or Hosted• ABAP Customization• Yearly Release Schedule• Managed by Customer/Partner• Update schedule defined by

customer

SAP S/4HANA Roadmap

7

http://www.sap.com/bin/sapcom/en_us/downloadasset.2015-03-mar-02-23.sap-s-4hana-frequently-asked-questions-pdf.bypassReg.html

1503 1506 1509 1511

8SAP S/4HANA Customer Journey

http://www.sap.com/bin/sapcom/en_us/downloadasset.2015-03-mar-02-23.sap-s-4hana-frequently-asked-questions-pdf.bypassReg.html

The S/4HANA Implementation

The S/4HANA Implementation

Custom Code Remediation

BW Near-Line Store

2015 2016

Suite on HANA

Solution Manager

HW Procurement

Roadmap

Cloud Migration

BW Housekeeping

ECC Housekeeping

Year End

SAP BW on HANA

S/4HANA

Sandboxes

Real-Time Analytics

Test Management

The Business Case

• Better Business Engagement

• Improved Morale• Customer Satisfaction

• Reduction in Days Outstanding

• Reduction in batch schedule

• Reduction in Stock• Reduction in Hardware

Cost• Reduction in Project

Costs

1.Financial

2. Quantifiable

3. Measurable

4. Observable

Components of a business case

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Tip: try to move benefits .from Observable Measurable Quantifiable Financial

• Compare against similar companies

• SAP Value Engineering

• Services organizations provide simulation using your business conditions

• Validate based on experience of others

• Relatively inexpensive

• Verify capabilities• Solidify Business Case

Pilot / PoC Reference Sites

BenchmarkingSimulation

Quantifying benefits

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Doing new things Doing things better Stop doing things

Financial

• Reduction in annual maintenance costs of hardware and infrastructure

• One time reduction in stock

• Increase total shopping cart size and value

• Reduced overtime due to less integration pressures

• DBA Tasks

Quantifiable• Reduced project costs

• Reduction in SLA misses for data availability

Measurable• Increased adoption

• Shorter development time due to simplification of the architecture

• Simplification of the solution stack as BWA Blades removed

Observable

• Mix non-SAP and SAP data into one data model in real-time

• Ability to navigate from company level to document level in one report

• 30x Improved average query time leads to faster and better decision making and support

Business benefits matrix

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• Finance soft close

• Planning and predictive finance

• Marketing to audience of one

• Material Requirements Planning (MRP)

• Advanced Available to Promise (ATP)

• High-volume inventory backflush

• Engage talent across the organization

• HR compliance across the organization

• Continuous cross-system control monitoring

• Fraud detection

Where to add capabilities and value

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Top capabilities

Unique value of SAP S/4HANA

Business innovations

SolutionsQuantifiable value

Use case

Example: finance soft close

Description: A traditional measurement of the finance organization is the speed at which a company closes its books. In benchmarking studies, SAP Value Engineering found that the top quartile–performing companies achieve the annual financial close in 26% fewer days than their peers, resulting in 61% lower General Ledger and closing costs.

Industry relevance: Cross-industry

Drive one common view of financial data to help ensure enterprise-wide consistency to minimize reconciliation Enable real-time processes for instant insight to make timely, relevant decisions Use prediction, simulation, and analysis to evaluate financial implications of strategic business choices

Universal journal for both financial and controlling data

On-the-fly aggregation of transactional tables Central finance to consolidate many back ends

SAP S/4HANA, on-premise edition SAP S/4HANA, cloud edition SAP Simple Finance solution

Real-time oversight of close progress Real-time insight into financial results Continuous intra-month processes

400 hours cut from period-end close 86% faster real-time analytics 2.5x faster cost postings*

*SAP software implementation

Closebatches

Consolidationbatches

Initial period Close & consolidation

Reporting on-demand

Close & consolidationInitial period

Business Process View: Finance soft close

With SAP S/4HANA: Real-time KPIs Elimination of end-of-period batch Continuous intercompany reconciliation Continuous financial reporting visibility Line-item detail reconciliation Automation for routine tasks Full management visibility of close tasks

With traditional system: Close activities don’t begin until period end Multiple batch-run dependencies Batch bottlenecks that delay downstream High error-correction efforts Complex issues postponed until after close Time-pressured resolutions Delayed visibility into reporting

Traditional system With SAP S/4HANA

Traditional With SAP S/4HANA

Process excellence

Key Takeaways

HANA is not just about speed. It’s about process change. All migrations to S/4HANA need OCM support and attention Analyze S/4HANA functionality for process improvements Update training materials to include Fiori UX changes Potential reduction in technical support staff

HANA Basis work can be less Cloud changes

Hybrid environment can implement quicker in some cases Also moves some support from internal to cloud vendor

Moves capital investment to manageable expense Migration to cloud moves selected headcount to cloud provider

Key Takeaways

Value Realization Anchor initiatives and projects to explicit value targets Ensure post-project value realization is tracked Establish simple & effective Portfolio Management tools and processes

Collaboration Active governance and collaboration between IT and the business

customers are key components Structure incentive systems to encourage collaboration & discourage silos

Orchestration Cloud applications alter how application portfolios fit together Engage the entire organization in mission-critical initiatives Establish clear project execution tools, and roles & responsibilities

Key Takeaways

Adds value to your company Finance activities are quicker, more streamlined SAP VE group measures 25% faster close, 61% less expense

Upcoming November release Was called Simple Logistics; will be renamed

Leaked information says “Enterprise Management” Expands the value-add into rest of enterprise

Simplifies the IT workload Less DBA work for BASIS folks Smaller footprint of database

Simplifies the Processes for just about everyone else

ASUG’s Take on S/4HANA

Where to find more information

scn.sap.com/community/s4hana/sap.com/s4hana

S/4HANA SAP Best PracticesSAP S/4HANA Cookbook

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Questions and Answers

Kevin ReillyTeam Reilly, LLC

Kevin@TeamReilly.net