Planning your Digital Transformation An Introduction. Suhan Hegde, Kai Zhang SAP July 2017

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1 Planning your Digital Transformation An Introduction Suhan Hegde, Kai Zhang SAP July 2017

2 Moving to an application landscape centered on SAP S/4HANA Today Questions Tomorrow Integration? Path to get there??? Value of innovation?? Cost of migration? Cost of new solution? Which solution to use in which use case? Give me guidance, not choices! 2

3 Topics Timing Topic Presenters 11:00 12:30 p.m. Planning Your Digital Transformation Suhan Hegde Kai Zhang Day 1 1:45 2:30 p.m. CRM of the Future Abhratanu Chatterjee 3:30 5:15 p.m. Supply Chain Planning with Integrated Business Planning Sagar Deshmukh 9:00 10:30 a.m. SAP Extended Procurement Package Ashwin Mundkur Kalaimani Tamilarasu Day 2 11:00 12:30 p.m. SAP S/4HANA Cloud Drive Digital Transformation with the Simplicity of the Cloud Philipp Hoffmann 1:45 2:45 p.m. HR with SAP SuccessFactors and Travel with Concur Aravind M 3

4 Lunch is Served Wednesday Executive Dining Room 3 rd Floor Digital Transformation Road Map with SAP Leonardo Increase Value Realization in Operations Digital Transformation on SAP s Platform Café Alley 1st Floor Planning Your Digital Transformation SAP Solution Manager 7.2: Accelerate the Digital Transformation Thursday Executive Dining Room 3 rd Floor Planning Your Digital Transformation SAP Solution Manager 7.2: Accelerate the Digital Transformation Café Alley 1 st Floor Digital Transformation Road Map with SAP Leonardo Increase Value Realization in Operations Digital Transformation on SAP s Platform 4

5 Lunchtime Activities Fireside Chat Plan Your Successful Transition to the Cloud Wednesday and Thursday 1:00 1:40 Location Demo A The Zone Have a question? Need more information on something? Visit our experts Open from Wednesday and Thursday 8:00 9:00 and 12:30 1:45 5

6 Planning your Digital Transformation - Agenda 1. Introduction to the Planning the Digital Transformation and track content 2. Developing a multi-year strategic road map 3. SAP Transformation Navigator 4. SAP Readiness Check for SAP S/4HANA tool 5. SAP Value Assurance for SAP S/4HANA 6

7 Introduction

8 Trends Strategy Simplification Mobile Technology Trends Big Data Predictive Cloud Real-time IT Landscapes need to be adaptive Aspirations decreases with complexity Simplification & Digitization SAP Offering Customer Adoption Digital Core Business Trends Changing Business Models Customer centric Networks Real-time Focus: Eliminate Overlapping Offerings Innovate: Leverage Platform Capabilities Transform Existing Implement New Template 8

9 Customer Motivations/Triggers Business Architecture Application and Data Architecture Technology / Platform Architecture Value Application Strategy Application Simplificatio n Cloud: SaaS ILM Analytics Strategy Integration Strategy Cloud: PaaS Cloud: IaaS Industry trends & Innovations ERP -> S/4HANA Strategy SAP Product Strategy Development Platform Strategy Data Modeling UX Strategy IoT Technical Architecture Process Modeling Instance Strategy OLAP + OLTP Mobile Big Data / Data Lakes Planning Solutions Roadmap & Transition Plan Deployment Options In-Memory Innovation Capabilities 10

10 The Digital Transformation lever is huge Mobilize services, BYOD New enterprise architecture How to leverage for my business Cloud End2End process chain Hybrid as the new norm Internal IT as service broker Mobile Business Networks Collaboration Web 2.0 New communication mechanisms New value chains Flex the core Simplify data model IoT User experience Data as new economic resource Big Data Machine2Machine communications IT security, tracking Real-time analytic Data-driven development Classic industry vs. digital business SAP SE or an SAP affiliate company. All rights reserved. 11

11 Developing a multi-year strategic road map

12 Landscape Simplification Workforce Engagement Supplier Collaboration and Business Networks Big Data and Internet of Things The Digital Core Customer Experience Omnichannel Consolidated Instances and Infrastructure Collapse consolidate Instances (if possible by moving to better templates on S/4 leveraging LT) X X X X SIMPLICITY OF THE SOLUTION is the foundation for ensuring availability, stability and reliably meeting the SLAs the prerequisite for IT flexibility as the enabler for business agility Simplified Solution SCM gatp SCM DP SCM PPDS SCM SNP TM ERP EWM SRM HR Data Leverage the stronger core (reintegrated functions) and SaaS cloud solution User Experience IBP S/4 Success Factors Sourcing & Procurem. Advanced ATP PPDS / MRP TM EWM Process the enabler for new business models and solutions the basis for reducing TCO the FOUNDATION OF THE FUTURE SUCCESS OF IT Simplified Application (Data, User Experience & Process VBOX FI Document CO Document Logical document X X X X X Complex Iterations and simulations 13

13 Various road maps... 1 Product road map 2 Customer strategic 3 road map SAP implementation road map Advice from SAP on SAP product/solution innovations Linked to + integration + value (benchmarking,...) Customer specific adoption road map Target and transition architecture(s) Advice from SAP how to best run implementation projects (based on SAP Activate) Implementation projects via value assurance leveraging model companies 14

14 SAP S/4HANA Simplified Landscape Typical ERP 6.0 Based System Landscape Strengthened Digital Core with maximal integration* Ariba YaaS NGOM Success Factors Concur Ariba BW ycommerce ERP-HR SRM ycommerce Embedded Analytics CRM GTS ERP ERP TM GTS S/4 Sourcing & Procurement Advanced ATP CRM MRP / PPDS EWM IBP SCM gatp PPDS DP SNP IBP S&OP Response EWM** TM** * (re-) Integrated functions will become available over time and in their first releases they might not cover the full functional scope as the current isolated equivalents* ** Solutions like TM and EWM can still be independently deployed 15

15 Successions in Detail Cloud 4 Sales Cloud 4 Service GTS ERP Functionality no longer available in S/4 ERP Functionality replaced with equivalent functionality in S/4 CRM ERP FI/CO SD / MM / PP Sales Activities Cust. Interaction Center SOP WM LE-TRA Transportation FI-GL Classic Cash Mgmnt FI-AR-CR Credit Management SD Revenue Recognition MBEW Material Valuation SD Rebate Processing Foreign trade 3 rd Party Add-Ons Vistex? SAP HANA Live (SoH only) LIS *IS HR S/4 Functionality already available in ERP New Functionality in S/4 Future Solution (not fully available) ?? 1610 Finance Sales Manuf. IBP Illustrative! No complete view SOP New General Ledger New Cash Management FSCM-Credit Mgmnt Revenue Accounting Settlement Management Advanced ATP PPDS Material Ledger Internat. Trade Compliance CRM SAP HANA Live WM EWM Not strategic (still available) Future (optional) Integrated Co-Deployment LE-TRA TM Sourcing & Procurement LIS *IS see simplification list! Partner Add-Ons Check with Vendor Embedded Analytics (CDS Views) HR S/4 MDG 1610 T&E MDG SRM Ariba Concur SCM gatp PPDS DP SNP IBP Demand Supply S&OP Response 1610 EWM?? TM SuccessFactors Emp.Centr Talent Payroll Recruiting 16

16 INSIDE OUT Cluster #3 Value Potential Cluster #2 Cluster #1 OUTSIDE IN Approach Innovation Strategy and Roadmap End-to-End Overview Industry & Technology Trends Reference Architectures Prioritization of derived Initiatives ROADMAP FY16 FY17 FY18 TARGET ARCHITECTURE Solution Architecture Platform Architecture Innovation Portfolio Matrix Ease of Implementation Cluster #4 Cluster #5 Known business requirements Pain points of current architecture IT Strategy Stepwise migration, driven by complexity and benefit Gains & Pains Clearly defined business value and IT benefits per migration step STEP 1 TO 3 STEP 4 STEP 5 17

17 SAP Transformation Navigator

18 Three questions existing and new customers ask: Existing customer Existing customer New customer/greenfield I am using SAP applications to run my business. Which set of SAP applications do I need when I move to an environment centered on SAP S/4HANA? My business is evolving, and I need new and different business capabilities. Which SAP applications around SAP S/4HANA do I need to run my business? I need a new digital platform for my business and don t want to look back. Which SAP applications do I need to run my business? Landscape transformation Business transformation First deployment or greenfield 19

19 SAP Transformation Navigator SAP Transformation Navigator output: Logical possible target architecture Solution Capabilities All recommended products covered Description of supported product functionalities Solution capabilities Value Release information Licenses Integration Services Release Roadmap information embedded Strategic direction and vision Product availability Licenses License transition Services are needed to derive concrete transformation roadmap taking concrete landscape (e.g. for multiple ERPs) into consideration Value Value of innovation Business driver Business case Services Migration types Planning and migration services Cost of migration Integration Integration Scenarios Integration Technology Integration Qualities 20

20 Transformation Navigator Fe a t u r e s How it works Co n t ac t Us St ar t Now SAP Transformation Navigator Clear Guidance to Live Business St ar t Now Don t worry we have got you covered We ll help you choose the best SAP products and solutions for your digital transformation journey, and show you how those products evolve C r e a t e Yo u r Pr o d u c t M a p B u i l d Yo u r B u si n ess Case P l a n Yo u r Jou r n ey 21

21 Transformation Navigator Fe a t u r e s How it works Co n t ac t Us St ar t Now SAP Transformation Navigator Clear Guidance to Live Business St ar t Now Don t worry we have got you covered We ll help you choose the best SAP products and solutions for your digital transformation journey, and show you how those products evolve C r e a t e Yo u r Pr o d u c t M a p B u i l d Yo u r B u si n ess Case P l a n Yo u r Jou r n ey 22

22 Transformation Navigator Fe a t u r e s How it works Co n t ac t Us St ar t Now SAP Transformation Navigator Clear Guidance to Live Business St ar t Now Don t worry we have got you covered We ll help you choose the best SAP products and solutions for your digital transformation journey, and show you how those products evolve C r e a t e Yo u r Pr o d u c t M a p B u i l d Yo u r B u si n ess Case P l a n Yo u r Jou r n ey 23

23 Peter s Sample Map Your new product map is still empty. Please add the products you are currently using. Import Import products from SAP Solution Manager Browse Select your current products from the catalog 24

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29 Transportation Order Execution (LE-TRA) SAP Transportation Management 30

30 Transportation Order Execution (LE-TRA) SAP Transportation Management 31

31 32

32 SAP S/4HANA

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39 Build Business Case in the SAP Value Lifecycle Manager 40

40 Readiness Check for SAP S/4HANA tool

41 Key Motivation I want to convert my current ECC system to S/4HANA, but How many adjustments I need to do? How many custom code I need to adopt? How many additional features I can get? Partner is asking for a 10 weeks engagements to answer those questions comprehensively. It is great but can I have some thing simple and quick to support an early preview? 42

42 Self-service Readiness Check for SAP S/4HANA 43

43 Agenda How does it work? Data flow and process steps Major information block Demo Pilot result Execute in your systems Central SAP Note Need additional help? 44

44 Data flow and process steps Self-service RC General availability: May Target: all ES customers Data flow: Your DEV/PRD system Your SolMan SAP HCP Major steps Implement extractor reports in your DEV system to extract your custom developments etc. Implement extractor reports in your PRD (or a recent copy of PRD) system to extract your transactional usage Use your solution manager system to pull the info from your DEV and PRD and send to SAP or Export info as a zip and upload to SAP Get a link to analysis result via . Results can also be downloaded 45

45 SAP Readiness Check for SAP S/4HANA Available for all customers included in maintenance as of May 29 th 2017 SAP Readiness Check for SAP S/4HANA Customers can initiate their ERP system analysis themselves, covering the most important aspects of an SAP S/4HANA system conversion. A new cloud solution based on SAP Solution Manager is available for all customers included in maintenance as of May 29 th Minimum source release is SAP ERP 6.0 EHP 0, any database. 46

46 Agenda How does it work? Data flow and process steps Major information block Demo Pilot result Execute in your systems Central SAP Note Need additional help? 47

47 Active Business Functions With Solution Manager system 48

48 Active Business Functions 49

49 Add-on Compatibility 50

50 Add-on Compatibility 51

51 Custom Code Analysis With Solution Manager system 52

52 Custom Code Analysis 53

53 Recommended SAP Fiori APPs 54

54 Recommended SAP Fiori APPs 55

55 SAP S/4HANA Sizing 56

56 SAP S/4HANA Sizing 57

57 Simplification Items 58

58 Simplification Items 59

59 Business Process Analytics With Solution Manager system 60

60 Business Process Analytics 61

61 Agenda How does it work? Data flow and process steps Major information block Demo Pilot result Execute in your systems Central SAP Note Need additional help? 62

62 Execute in your systems Central SAP Note Follow the detailed steps in SAP Note SAP Readiness Check for SAP S/4HANA Usually takes basis team 1~2 weeks first time Additional Help? Help to interpret the result Value and Implementation Strategy service or Migration Planning Workshop Help about RC itself and enhanced result Add-on possible via VIS or MPW services 63

63 SAP Value Assurance for SAP S/4HANA

64 New Implem. Conversion Planning the digital transformation Multiple aspects of planning from strategic to concrete transition planning 1 Strategic planning Customer wants guidance on how its landscape will evolve in next 3 years when adopting SAP S/4HANA and other innovations Outcomes are target architecture (high-level) and transition road map 4 Transition planning Application value and scoping Customer wants to understand what is in SAP S/4HANA in key business areas in terms of new valuable functionalities AND the needed (mandatory and options) adoptions Drive the decision on conversion vs. greenfield implementation 3 Prototype Certain limited aspects (business functions, transition or performance, ) are critical to verify before the real project starts Planning the migration projects in terms of must-dos, possible needed preprojects, and test migration cycles If needed, assessment of custom code situation Scoping of the new implementation project best of best practices and/or the SAP Model Company approach. Outcome is a high-level scope definition and project plan (durations) 65

65 New implem. Conversion Planning the digital transformation all components As defined in service catalog and engagement sizer Program level Innovation strategy and road map Strategic planning Analytics architecture Innovation discovery and design Anchor components Extension components Readiness check = Typical anchor components to start the planning of the respective area = Supplementing components focusing on specific aspects = Delivered only in conjunction with parent planning component Transition planning Project level Value and implementation strategy Readiness check Application value and scoping Back to standard Scoping workshop for prototyping Data migration architecture Readiness check Prototype Enablement charter Run the prototype Migration planning workshop Readiness check Transition planning for new implementation Technical architecture and infrastructure Custom code management architecture 66

66 Enterprise Management ERP & SAP S/4HANA capability changes Impact on Target Landscape Comparison of as-is to the expected tobe landscape. Please note that those charts do not show the complete system landscape at <customer> but focuses on those applications and systems most relevant for the S/4HANA migration Types of changes - Landscape simplification enabled by S/4HANA (e.g. Using embedded PP/DS so that intregation to SCM PP/DS is not necessary) Systems introduced because specific components are no longer available in S/4HANA EM; (e.g. FSCM needs to be used instead of SD credit check) Vertical systems introduced because of a technology switch; (e.g. gateway for Fiori) Changes introduced because enhanced functionality; (e.g. XT200 based functionality instead of XT100 in PRA) Changes introduced because specific processes are no longer strategic with S/4HANA ( compatibility scope ); SAP continues to provide these applications also under S/4HANA till end of year 2025, but expects to replace them before the end of the maintenance period of the respective S/4HANA release. (e.g. EWM instead of WM) SCM Business Process Human Resource Planning Planning Global Trade Analytics Detailed Scheduling Demand Planning Supply Network Planning gatp/bop PRA Finance ATP/BOP Order Management Warehouse Management Credit Check Foreign Trade Rebates Planning Planning Platform business systems ERP 6.0 HR Business Warehouse (Data Mart) BPC SCM PP/DS SCM DP SCM SNP XT200 S/4HANA Core Finance S/4HANA ATP / BOP S/4HANA OTC EWM (co-deployed) FSCM Contract Settlement Embedded BPC GTS Vertical systems Gateway Process Integration 67

67 Overall Roadmap for <Customer> High-level Transition Plan 1/3 Assessments - CVI Implementation assessment & MDG - New GL implementation assessment & New Asset Accounting implementation assessment - FSCM (Cash Management/Credit Control) assessment & Rebate conversion assessment - WM / EWM assessment - System simplification assessment - Code Review assessment - Archiving assessment - PRA to XT 200 Assessment - Foreign Trade to GTS Mandatory Pre-Projects - MDG Implementation starting with CFin - PRA to XT Execute CVI Implementation - FSCM - Convert Credit Management to FSCM (XX2, XX8 & XX3) - Rebate Management - Convert to Settlements (XX2, XX8 & XX3) S/4HANA Deployment - Conversion to S/4 HANA XX1 - Conversion to S/4 HANA XX2 & XX8 - Conversion to S/4 HANA XX3 To be planned In discussion Planned/Ongoing Multiple Options Cloud/On-Prem CFIN XX3 XX2&XX8 XX1 Phased Go-Live Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Data Foundation - Tool Strategy with MDG - Master data Cleansing Strategy - Realization of Master Data strategy 68

68 Thank you.

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