S/4HANA - digital core of the modern enterprise and key building block of streamlined enterprise architecture. Yuliya Seregina March 2017

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2 S/4HANA - digital core of the modern enterprise and key building block of streamlined enterprise architecture Yuliya Seregina March 2017

3 Competing in Today s Digital Economy Requires Speed & Agility Hyperconnectivity 5 Technology Trends are changing the way we work, live and interact Cybersecutiry Supercomputing Smarter World Cloud Computing 3

4 Digital Business is a Paradigm Shift REIMAGINE Business Models New ways to reach customers & prospects Outcome based business Platform business Enter new industries & markets REIMAGINE Business Processes Collapse cycle times Accelerate innovation cycles Intelligent processes Lean processes B2B collaboration REIMAGINE Work Consumer grade user experience Self services Real-time collaboration People-Machine Collaboration Cognitive world & AI 4

5 Still Forklifts evolving into a services company 5

6 Video - STILL 6

7 Transformation starts with the Digital Core HANA Platform 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. 7

8 S/4HANA key building block of streamlined Enterprise Architecture Business Architecture Data and collaboration driven business models Industry leading processes available across industries Optimal TCO (consolidated landscape, lower data footprint) Ideally supports bi-model IT concept Fewer interfaces between the systems Technology Architecture Data Architecture Application Architecture Landscape and data model simplification, embedded analytics Agile innovative functionality implementation 8

9 Reimagine Business Processes: Procurement Review Material Shortage Analytics and Insights Select Supplier Now All On One Screen Check Budget Overview Purchase Manager Enter Material Order Cross Sell Check Average Supplier Delivery Performance Choose best supplier and complete material order entry Faster customer delivery Review Detail Report Larger average deal size Fewer warehouse stock outs 9

10 Buyer & Supplier collaboration BUYER Digital Handshakes SUPPLIER Request for Quotation / Supplier Quotation Request for Quote Quote / Award Sourcing Collaboration Purchase Order Purchase Orders PO confirmation Ship Notice Goods Receipts Order Collaboration Invoice Payment Invoices CC-Invoice; MM invoices Invoice Status Update Payment Proposal Early Payment Remittance Advise Invoice Collaboration Discount Management Invoice Collaboration 10

11 Cash Application Intelligence: Machine Learning to tackle the most manual step in invoice-to-cash Business Value Automatically matches payments to open customer invoices Enables substantial reduction of labor costs per invoice and faster clearing Learn from accountants` actions and applies it to future payments Automation shifts effort towards better service quality 11

12 Modern IS Architecture concept view 12

13 Hamburg Port Authority steering course for the connected port of the future Our aim is to gradually interconnect all modes of transport from waterways and roads all the way to the railway 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 13

14 Technology architecture reimagined with S/4HANA 300 Complex Integrations 24 Distinct systems consolidated into three 27% Reduction in custom objects 14

15 Digital Core of the future Key innovations starting with a user experience to enable digital adoption Leveraging emerging technologies and trends Machine Learning (increased automation via algorithm driven business acceleration) Smart System with Digital Assistant Intelligent Services Blockchain 15

16 Digital DNA: How to start the evolution

17 Overcome challenges and stay focused Regulations Make Digital a priority for senior executives Run integrated program vs. uncoordinated effort Lack of standardization and poor data quality Embrace Enterprise Architecture approach Ecosystem and legacy Challenges Focus Continue to develop digital capabilities: invest, build, buy or partner Build capabilities, not just systems Culture and mindset Focus on TO-BE state Infrastructure readiness Drive the culture of innovation and technology adoption Invest in human capital Reform the company s data architecture 17

18 cc Get started 1 Strategy alignment 4 Value realization Governance & Change Management 2 Opportunity assessment 3 Solution road map and ROI

19 Starting your journey to SAP S/4HANA First steps: Your path: The roadmap Options: Identify business requirements Build the business case Develop an SAP S/4HANA adoption strategy & roadmap 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 Planning & safeguarding Technical implementation Functional implementation Co-innovation Innovation Strategy and Roadmap On premise Cloud New implementation System conversion Hybrid Landscape transformation 1 19