How the SAP Model Company for Chemicals can speed up your SAP implementations

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1 How the SAP Model Company for Chemicals can speed up your SAP implementations International SAP Conference for Chemicals, Prague, October 18 th, 2018 Dr. Heidger Marx, Principal Industry Advisor Chemicals SAP Digital Business Services, Energy & Natural Resources

2 Agenda Service Overview Scope Delivery Approach 2

3 Digitization is Happening NOW 81% of CEOs think mobile technologies are strategically important for their business. 4 Mobility Cloud $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 90% Of the world data has been generated during the last 2 years 1 Big Data Technology Business Networks 40% Growth in adoption of business networks in next 2 years 2 Over 2 billion people now on social networks. 212B Things will be connected by the end of Internet of Things Social Networks 61% of CEOs think socially enabled business processes are strategically important for their business. 4 1 ScienceDaily. ScienceDaily, 22 May Technology Adoption Report: Business Networks, Ardent Partners, Internet of Things (IoT) 2013 to 2020 Market Analysis, Annual Global CEO Survey, PWC, From box to cloud, McKinsey

4 Transformation Needs to Happen NOW to stay ahead of competition 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, % say technology advances will transform their business over the next five years. CIO Journal, January 2015 and see a clear vision and plan as key success factors 1 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 50% of the companies in current present S&P500 will not be there in 10-years-time 1 ) answer of more than 80% of CEOs in Annual Global CEO Survey, PWC, January 2015 McKinsey, Creative Destruction 4

5 SAP s Digital Platform SAP Model Company SAP Model Company SAP S/4HANA Value Assurance SAP Digital Innovation Lab 5

6 Time to value is key in assuring a successful digital transformation THE challenge THE solution THE outcome 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 Transform to SAP S/4HANA Accelerate implementation for faster time to value Adopt early and quickly and free up resources for innovation 6

7 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 7

8 The SAP Model Company Building Blocks Best Practice Comprehensive business process documentation, methodologies and step-bystep approaches combining knowledge of customer projects Pre-Configured Processes preconfigured steps for operating the business with SAP Software SAP Solution Manager Documentation control, monitoring and transport for the landscape Engineered Services Technology / Functional standardized professional service with accelerators for fixed outcome and fixed price Industry Reference Architecture template solution for an architecture providing business capabilities to run end to end operations Sample Data sample master data and transactional data to showcase the business SAP Software SAP S/4HANA, Hybris, Success Factors, Industry Solutions 8

9 Projected Reduction in Effort using SAP Model Company Approach Explore Weeks* Build: weeks* Traditional Project Implementation Approach with Model Company Import the Model Company to customer landscape 6 Weeks Build: weeks* Integration Validation Model Company KPI s * Estimated Efforts Target: Reduce Blueprint efforts upto % Target: Reduce Realization efforts upto 50% Target: Reduce Testing efforts upto 30% 9

10 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 C SAP Model Company Implementation framework INVOLVEMENT OF SAP Innovate Accelerate functional realization Accelerate technical implementation B 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 Plan and safeguard ENGAGEMENT SCOPE 1 A 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) 10

11 SAP Model Company: Innovation adoption made simple Fast time to value Get a jump-start for your implementations Deploy SAP innovations fast, simple and flexible Reduce non-value adding tasks to a minimum Predictable results Use state of the art architecture and best practices Minimize risk with proven end-to-end solutions Leverage business and implementation guides Simple on-boarding Reduce complexity and use ready-to-run appliances Accelerate and get your model company in days Minimize costs with cloud based deployments 11

12 Agenda Service Overview Scope Delivery Approach 12

13 SAP Model Company for Chemicals Scope (version 4 on 1709) Over 1200 Processes and 149 end-to-end Scenarios Based on Best Practices Supplementary Components SAP Solution Manager Documentation o SAP S/4HANA Chemicals trial with industry best practices US 1709 details o SAP Best Practices for S/4 HANA US 1709 Baseline further details o Weigh & Dispense o Environment, Health and Safety - EHS o Manufacturing Performance Management MII o 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 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. 13

14 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 14

15 SAP Model Company for Chemicals What 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 15

16 SAP Model Company for Chemicals What is SAP Global Batch Traceability? See the networks of batches from purchase orders, across production and transportation to deliveries across systems 16

17 SAP Model Company for Chemicals What is SAP Leonardo IoT? Key features Sensor data for accurate tank inventory levels More accurate storage and transport planning Reduce spill size, costs, scrap 17

18 SAP Model Company for Chemicals What 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 18

19 SAP Model Company for Chemicals What 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. 19

20 SAP Model Company for Chemicals What is New in Version 4? Additional Scenarios from SAP Best Practices for Chemicals 1709 Additional MC-specific enhancements Changes to the landscape 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 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 Applications included: S/4 HANA, MII Other components as new scope options Global Batch Trace SAP Leonardo IoT 20

21 SAP Model Company for Chemicals Scenarios (1/7) Business Priority Scope Item Scenario (Preconfigured content and delivery accelerators) Model Company for Chemicals MII - Manufacturing Performance Management Weigh & Dispense - Scale Test Weigh & Dispense - Weigh with PI Sheet Weigh & Dispense - Weigh with Weighing Cockpit in S/4HANA Best Practices for Chemicals 1709 Plan to Product Manufacturing 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 Management Work-in-Process (WIP) Batch Repetitive Manufacturing with Quality Management Make-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 Management MTS Variant Configuration utilizing classical Variant Configuration MTS Variant Configuration with Material Variants utilizing Advanced Variant Make to Order Variant Configuration utilizing Advanced Variant Production Subcontracting - External Processing (continued on next slide) 21

22 SAP Model Company for Chemicals Scenarios (2/7) Business Priority Plan to Product Scope Item Manufacturing (cont d.) Scenario (Preconfigured content and delivery accelerators) S/4 HANA Best Practices 1709 Baseline Material 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 Management Overhaul Management Work Clearance Management Operational Maintenance Preventive Maintenance Investment Management in Plant Maintenance Refurbishment Management with Sub Contracting Multi Resource Scheduling Calibration Processing 22

23 SAP Model Company for Chemicals Scenarios (3/7) Business Priority Procure to Pay Scope Item Procurement Scenario (Preconfigured content and delivery accelerators) 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 Materials Quality 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 23

24 SAP Model Company for Chemicals Scenarios (4/7) Business Priority Order to Cash Scope Item Sales, Marketing & Service Scenario (Preconfigured content and delivery accelerators) 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) 24

25 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 Model Company for Chemicals Embedded TM Inbound Scenario Order to Cash Supply Chain Execution 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 Customer Quality Management in Stock Handling Outbound Logistics Optimizer Based Planning and Carrier Selection Outbound Logistics with Transportation Management Advanced Warehouse Outbound Processing to Customer Multiple 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 25

26 SAP Model Company for Chemicals Scenarios (6/7) Business Priority Scope Item Scenario (Preconfigured content and delivery accelerators) Model Company for Chemicals Safety Incident Recording Health Risk Assessment Exposure Monitoring Chemical Approval Plan to Product Sustainability 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 26

27 SAP Model Company for Chemicals Scenarios (7/7) Business Priority Core Finance Scope Item Finance and Controlling Scenario (Preconfigured content and delivery accelerators) 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 - Actual Overhead 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 Orders Machine Learning - SAP Cash Application Integration Managing Material Price Changes and Inventory Values General 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 27

28 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 28

29 SAP Model Company for Chemicals Model Company for Chemicals Additional Pre-Configured and Ready-to-Run Processes Global Batch Traceability (option) SAP Leonardo IoT (option) Weigh & Dispense Environment, Health & Safety Manufacturing Performance Management Digital Boardroom (optional additional service) SAP Best Practices for Chemicals 1709 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 29

30 Agenda Service Overview Scope Delivery Approach 30

31 SAP Model Company Delivery 1 Customer buys SAP Model Company service Sandbox system Cloud or on-premise Receives link to 2 Blu-ray discs Customer 3 SAP Cloud Appliance Library Customer copy SAP Model Company services Existing system Cloud provider 5 D-, Q-, and P- system SAP S/4HANA Value Assurance or Advanced Deployment 4 Discovery, fit-gap analysis Partner 31

32 SAP Model Company Delivery Validation SAP Cloud Appliance Library provides access to an online library of preconfigured SAP solutions that can be instantly deployed in cloud environments SAP Cloud Appliance Library Delivery 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 onpremise. SAP managed account / SAP hardware SAP HEC SAP Value Prototyping Amazon Web Services MS Azure Google Cloud Hosting On Premise Blu-ray discs customer owned / managed account SAP will safeguard the last step of the transformation Customer with Value Assurance Service Packages and Advanced Deployment Packages. SAP Value Assurance Service Packages SAP Advanced Deployment 32

33 System Landscape 33

34 Delivery Approach: Typical Project Plan Main project activities START 4-6 Weeks Prepare Kickoff and Workshop Preparation 8 days SAP involvement Customer involvement Installation 2 days Expert Workshops In Parallel 20 days Closing 1 day Additional lead time for the HEC landscape build 34

35 Responsibilities What does SAP do? 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 do customers 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 sandbox Get 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 35

36 SAP Model Company Value Proposition and Benefits If you want to 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 You benefit from 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 36

37 Don t wait! Start NOW! Next steps and more information Build your SAP S/4HANA journey Identify areas of scope and define your transition path with the discovery workshop for SAP S/4HANA Get started with your service package and start your smooth journey to SAP S/4HANA with SAP Digital Business Services today Contact / follow us on: Useful links Transition to SAP S/4HANA on sap.com: 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: 37

38 Thank YOU for your attention! Contact: Dr. Heidger Marx Principal Industry Advisor Chemicals DBS ENR EMEA

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