BE SMARTER TAKE IT TO A NEW LEVEL
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1 Heidelberg, October 19 20, 2017 BE SMARTER TAKE IT TO A NEW LEVEL Michael Lamade, Global Head S/4HANA Industry Program, SAP SE
2 SAP S/4HANA 1709 update Strategy and Roadmap for your Digital Transformation Michael Lamade, SAP October, 2017
3 Legal Disclaimer 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. This presentation and SAP s strategy and possible future developments are subject to change and may be changed by SAP at anytime for any reason without notice. 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. 3
4 1992 ERP vs S/4HANA Driving Assistance Package Blind Spot Assist Active Lane Keeping Assist Drive Pilot Head-up-Display Navigation-Package Memory-Package Connectivity-Package Parking Package with 360 camera e as after-thought vs. engineered ground-up... Cloud Simulation Predictive Machine Learning Blockchain 4
5 Business pain: Strategic challenges for corporate IT landscapes IT Layers Data Automation Typical Innovation grade manual entry - static upload - IoT devices - data mapping & mining - machine learning SAP Leonardo Native HANA capabilities (Mapping, Mining, Search) People Productivity LoB specific Apps phone learned tx. - cockpits handheld - KPI s - networks intuitive - digital assistant old apps disconnected - data transfer embedded in core - standard API - flexible cloud CoPilot Business Networks Insight-2-Action SAP Cloud Platform Standard API s Analytics Core Processes Master Data extracts - list reports dashboards for c-level / key user realtime - simulation - prediction historic no-touch/keep lights on legal updates contin. innovation strategic re-invent grown duplication continuous cleanup governance - auto consolidate access Solution Overview Pages, KPI s Visualization & Simulation Machine Learning / Prediction Industries inside One MRP/Integrated PPDS Advanced ATP & VC Embedded WM & TM Lean master data 360 cockpits Quick search, track & trace Smart tagging 5
6 Back-office Front-office Landscape Simplification/ Consolidation Enrich S/4HANA through retrofit of SAP Business Suite capabilities (technical view) SAP S/4HANA SALES / SERVICE SAP S/4HANA SUPPLY CHAIN SAP S/4HANA SOURCING & PROCUREMENT SAP BUSINESS WAREHOUSE hybris Marketing hybris Commerce Ariba Network: Discovery, PO/Invoice Collaboration, Catalog 1) e.g. for existing CRM customers or customers with specific use cases 2) e.g. for customers with Cloud preference * planned retro-fits Cloud for Sales 2) Cloud for Service 2) CRM 1) Sales Service Commerce (multi-channel) Marketing Supply Chain Planning Demand Signal Mgmt. Supply Network Collaboration Advanced Planning & Optimizat. DP SNP PP/DS gatp Supply Chain Execution Extended Warehouse Management Track & Trace Transportation Management* Ariba Cloud Solutions: Procure-to-Pay Sourcing, Contract Mgmt. Supplier Information Perf. Mgmt. Supplier Catalog (MDM) Supplier Lifecycle Mgmt. Contract Lifecycle Mgmt. SAP Sourcing Supplier Self Service SRM Requisitioning Operational Contract Mgmt. Catalog Index Enterprise Data Warehouse Operational Reporting SAP S/4HANA, on-premise edition SAP HANA Platform Slide shows main consolidation areas not intended to show the complete picture 6
7 SAP Fiori 2.0 What s New Me-Area Replacing former shell header menu Shows recent activities now Anchor bar navigation Replacing group menu Shell header Revised, launching notification and me-are viewports and Co-Pilot window. Provides navigation menu when app is launched by clicking on title Notifications Shown in separate viewport that opens on clicking respective icon in shell header Me-area Workspace Notifications 7
8 Re-designed UI across industries SAP Fiori Apps Library 8
9 Use Case: Sales Order Management High volume Order-2-Cash needs too much manual attention and effort OLTP based systems Issues & exceptions are typically identified by working down lists of multiple table & aggregate structures a time consuming and error-prone process A people centric collection of issues & exceptions via embedded analytics and worklists in real-time on primary data to solve issues in seconds OLAP + OLTP in SAP HANA Resolved Delivered Billed Paid 9
10 Sales order management with SAP S/4HANA: what you get Use real-time alerts instead of checking yesterdays reports Ensure resolution of the biggest issues first Check impacts and act on any issue within seconds Experience Transformation: Sales Order Fulfillment: DEMO / VIDEO Measure SAP ERP with SAP GUI Sales Order Fulfillment with SAP Fiori Sales Order Fulfillment Improvement Factor Duration 4.15 min 2.20 min 1.9 x Clicks x Number of Apps x Fields filled x 10
11 Experience Transformation with SAP Fiori UX side by side comparison SAP S/4HANA Sales Order Fulfillment Process Receivables Post Incoming Payments Payments Proposals Manage Vendor Line Item Clear Incoming Payments Post General Journal Entries Inventory Management Produce with Real-time MRP Insights Analyze Third Party Services 11
12 SAP S/4HANA 1709 Innovations Lines of Business (LoB) FPS 2 Extended Warehouse Management Transportation Management EAM Digital Enterprise Assets Finance GRC Environment, Health & Safety Quality Management Warehouse Optimization Advanced e-commerce capabilities Delivery integration / Change Management Advanced integration of quality management Advanced Labor Management Unplanned Returns Simplify integration with Transportation Management Basic Shipping with Transportation Management (TM) Harmonized master data and customizing Integration of transportation management and extended warehouse management SAP TM integrated in S/4HANA Enterprise Management Embedded analytics for transportation management SAP Fiori app Respond to Breakdown Role-specific EAM overview pages Object Pages Enhancements EAM Report and Repair Malfunction Breakdown analysis Legal Control (Export) Classification Intrastat Processing (Extending the existing Intrastat functionality for the new released countries) Compliance Management and Emissions Reporting Site survey Simplified risk assessment and interdivisional reporting Chemical Inventory Reporting Manage usage decisions in quality management Manage inspection overview for quality technicians Analytics for quantitative results with graphics and statistical parameters in QM Provide analytical information, such as defects, for different roles in QM 12
13 SAP S/4HANA 1709 Innovations Lines of Business (LoB) FPS 2 Hybris Billing (FI-CA) Foundation Rules Framework (NW) Idea - PLM Master Data Management Procurement SAP Fiori apps for Accounts payable/receivable managers (FI-CA) KPIs for dunning run exceptions and returns Accounts payable/receivable accountant (FI-CA) Manage Business Partner Line Items Invoicing specialists Billing Plans Improved support for digital payments: Customer financial integration to payment service providers via SAP Cloud Platform Foundation Unified Business Event Handling (Integration with Situation Handling), Business Process Flow Responsibility management Agent determination, Integration with Situation Handling Situation Handling Automation process support based on machine learning and ranking capabilities Rules Framework Rules for SAP S4HANA - analytical rule sets Rules versioning Adopt UI5 UX for operational rules Extend DSM to support SAP Fiori applications PLM Recipe Development - Recipe Finder Visual Manufacturing Planner Manufacturing Change Record eppm Project reporting Variant Configuration Classification reuse user interface component Embedded Analytics leveraging configuration data New Variant Configuration engine leveraging SAP HANA capabilities MDM = CMD + MDG Master Data Governance (MDG) Provide master data in corporate quality across complete landscapes Central Master Data (CMD) Master data maintenance in SAP S/4HANA (Business Partner, Product) to efficiently run business processes Business Partner and Product Maintenance Business Partner and Product Integration Governance, Generic Functions Master Data Consolidation Mass Processing Central Governance SAP Fiori Apps Limits, TM integration, Purchase Order history display, Supplier category, Supplier Evaluation and Supplier Scorecard processing Enhanced Supplier Invoice processing (limits, asset postings, multi accounting) Enhanced Purchase Requisition processing (flexible workflow, limit, budget checks) Enhanced Scheduling Agreement and Contract processing (multi level approvals) Legal Content Management Simplified Service procurement for Service Entry Sheet and Service Confirmation processing Functional Enhancements to Professional Purchase Requisition Processing Enhanced Invoice Exception Monitoring and Processing 13
14 SAP S/4HANA 1709 Innovations Lines of Business (LoB) FPS 2 Commodity Management SAP Commercial Project management Extending the SAP S/4HANA pricing with a commodity pricing engine to allow formula based pricing for exchange traded commodities in sales and procurement processes Commodity Procurement using commodity pricing engine with purchase orders, differential invoicing, period end valuation Commodity Sales using commodity pricing engine Delivery of SAP Commercial Project Management with SAP S/4HANA (and no longer as an add-on) starting with release 1709, which simplifies installation and operations Built-in standard configurations 14
15 SAP S/4HANA 1709 Innovations Industries* focus this session FPS 2 Public Sector Oil&Gas Retail / Wholesale Utilities Discrete Industries SAP Fiori apps for budget specialists funds management Business role for customer service representative transaction management including new SAP Fiori apps Downstream Innovations: Supply Chain Visualization TSW Planning & Analytics, Ticketing Physical Inventory Data Capture & Processing IS-Oil Commodity Management Integration Upstream Innovations: PRA / Upstream Operations Management Integration Wholesale Fashion enablement Order allocation Segmentation Retail Omnichannel Integration of the central promotion pricing service into SD sales order SAP S/4HANA Retail Master Data integration with SAP Hybris Commerce Parallel ATP run with time series with results transferred into CAR Merchandise management Enhanced material article harmonization In-Store Merchandising: New SAP Fiori app for Transfer Products, Enhancements in SAP Fiori apps Order Products and Product Lookup Object pages for Product, Site and Allocation Table Structured articles with full products Support MRP areas for special processes Wholesale Settlement Management enhancements SAP Fiori app for utilities meter reading and billing Analysis of Master and Transaction data Cloud for Customer Integration Automotive Vehicle search with Enterprise Search on SAP HANA * This is the current state of planning and may be changed by SAP at any time without notice. 15
16 SAP S/4HANA 1709 Innovations Industries* focus this session FPS 2 Mill Products Insurance Banking Aerospace & Defense Media Agriculture Combined order scheduling with embedded production planning and detailed scheduling (PPDS) SAP Fiori app providing an overview page for claims supervisors SAP Fiori app providing first notification of loss SAP Loans Management for Banking for use with SAP S/4HANA enterprise services in the area of "roll over, "deferral" and "capitalization of overdue items Core Capabilities and GPD (Grouping, Pegging and Distribution) & MIGO (Goods Movement) Adoption Product Master Hierarchy Based on Classification With the Product Master app, you can view/filter the media product hierarchy, and navigate to product master details to maintain the hierarchy. Industry to Core: First release of SAP Agricultural Contract Management (SAP ACM) in SAP S/4HANA * This is the current state of planning and may be changed by SAP at any time without notice. 16
17 SAP S/4HANA 1709 Innovations Industries* focus this session FPS 2 Consumer Products SAP Catch Weight Management (CWM) enablement for SAP S/4HANA. Available for system Conversion projects ** Direct Store Delivery (Backend) in compatibility scope*** Migration Tools for CWM (SAP ERP to SAP S/4HANA 1709) *** Available since SAP S/4HANA 1610 FPS02 ** Available since SAP S/4HANA 1610 FPS01 for New Implementation projects * This is the current state of planning and may be changed by SAP at any time without notice 17
18 SAP S/4HANA 1610 Manage all parts properly Relevant primarily for System Conversion Relevant for New Install and System Conversion S/4HANA Enterprise Management Greenfield New implementation Brownfield Conversion Minimal Disruption Process Optimization Process Re-Engineering X X S/4HANA Finance Cloud Editions ERP/Suite on HANA On Premise Edition Functional Scope Deployment Options Transition Scenario Projects Change Mgmt. Approach OLAP&OLTP CDS Virtual Data Models Technical & Methodology Changes Principle of ONE, Simplified Functionality FIORI Role based / exception based user experience New Customer/Partner Development Framework HANA Optimization Modification Clearing Custom Code Optimizations Optimizations Custom Code Refactoring Syntax Corrections Released Industry Solutions Compatibility Released Add on s Simplification database Installation & Landscape Management Transition System conversion activities & SUM Database Migration & Unicode + Tools, Content, Services 18
19 SAP S/4HANA system conversion Maintenance Planner Preparation phase Realization phase System requirements Maintenance planner Pre checks Custom code preparation Software Update Manager (SUM) Application specific follow-up activities Solution hosted in SAP Support Portal at: Simplifies landscape maintenance process to update, upgrade and install systems with ease and efficiency Entry via Plan for SAP S/4HANA entry tile Offered to ease transition to new product line Automatically integrates all building blocks (such as SAP Fiori) Define changes (based on your landscape data in customer profile) Select files (like you did in Maintenance Optimizer) Push all required tools, archives and stack.xml to your download basket i More information:
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23 So what is the business value in S/4HANA 1709? Built to Scale For high automation Scalable live business Smart Master Data Product Master (synced Material, Article) Hierarchies based on Semantic Tags Engineering Control Center Recipe finder Simplified Architecture Embedded Transportation, CPM, PPM Central Requisitioning New Legal Content Management New Migration Cockpit Scalable Performance Reporting speed up to 1000x Inventory Throughput up to 30 MRP Run up to 10 x VC algorithm significantly faster Built for People People centric access Free text search Any device KPI driven Business New Role based KPI s New Overview Pages (Sales, Quality, Procurement ) New Insight-2-Action Cockpits (QM, Engineering, Sales, DDMRP, FCC ) Smart Business Demand Driven MRP Variant Config. & Simulation One Single Invoice Engineering change impact analysis Collaboration inside Co Pilot 1 Flexible Approval / Resp. Mgmt. Report & Repair Malfunction Cockpit Built for Growth Providing In-memory Integration base for future innovation consumption Supporting Cross Industry in Core SAP Leonardo / IoT Integration to Cloud Automotive Vehicle Search Commodity Management Fashion (Seasonality & Segments) Banking Loans Integration Catch Weight Mgmt. Agricultural Contract Mgmt. ML: SAP Cash App Predictive Contract Analysis Geographical Enablement Digital Payments Integrated Business Planning 23
24 Where to go for more information Discover SAP S/4HANA Explore the scope Try it yourself SAP S/4HANA, cloud edition trial SAP S/4HANA, on-premise edition trial SAP S/4HANA Roadmap SAP Innovation Discovery Transformation Navigator Learn more: SAP Learning Hub 24
25 Key Take away s / Learnings / Observations There s no reason to wait start now! SAP has a unique ( unfair ) advantage with industry boundaries blurring retrofitted industry add-on s allow customer to pick and chose Tell the landscape simplification story Self service procurement, PP/DS, ATP, EWM, MDG, TM, CRM, part of the S/4HANA platform Tell the S/4HANA+ story (SAP Leonardo, hybris, SAP Cloud Platform extensions, ) 25
26 Thank you. Contact information:
27 AGENDA FRIDAY, OCTOBER 20, :00 16:15 Coffee break and exhibition 16:15 17:00 Auditorium KELLOGG S ASIA PACIFIC: SAP JOURNEY TO AWS CLOUD Speaker: Amit Shah, IT AP, Kellogg Company Moderator: Ralf Mehnert-Meland, President, SNP
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