Are you fit for S/4 HANA?

Transcription

1 Transforming the World through Quality sqs.com Are you fit for S/4 HANA? Sadanand Kotasthane, Global Head of ERP Practice

2 Introduction Sadanand has over 24 years of experience in enterprise wide IT transformation, solution design, architecting and QA. 20+ years in deployment of various SAP technologies & solutions for Upgrades, Migrations, Roll outs, Implementations etc. In various domains such as manufacturing, logistics, airlines, retail, utilities, pharma etc. Worked for SAP Global Consulting where successfully setup and managed the SAP Upgrade Assessment Competency Center Served hundreds of SAP customers every month Currently working in SQS Software Quality Systems group (Transforming the world through Quality!) as Director ERP Practice. Passionate to help customers to improve their SAP experience! SQS Group Limited Are you fit for S/4 HANA? Public Version 1.0 2

3 Digital Transformation SQS Group Limited Are you fit for S/4 HANA? Public Version 1.0 3

4 Maturity in using ERP / CRM / SCM / IS x / BI solutions and Relativity in Digital Transformation Innovation System of Differentiation System of Record SQS Group Limited Are you fit for S/4 HANA? Public Version 1.0 4

5 Maturity in using ERP / CRM / SCM / IS x / BI solutions and Relativity in Digital Transformation System of Innovation New technologies, ideas or approach IoT, Design Thinking, Hybrid Landscaping Limited Audience System of Differentiation Create organizational agility through adaptive and cross applications E2E processes Processes unique to organization System of Record Strong, stable foundation Pace of change is slow (avg. 7+ year cycle) Provides location for common ideas Core transaction processing SQS Group Limited Are you fit for S/4 HANA? Public Version 1.0 5

6 Maturity in using ERP / CRM / SCM / IS x / BI solutions and Relativity in Digital Transformation Adapted Gartner Pace Layer Diagram Innovation Layer High rate of change. Exploration focused. Deliver lessons learned and possibilities for investment Systems of Differentiation Modern rate of change. Investment focused. Expose standardized data, services & capabilities Systems of Record Slow rate of change. Efficiency focused. SQS Group Limited Are you fit for S/4 HANA? Public Version 1.0 6

7 The SAP Transformation SQS Group Limited Are you fit for S/4 HANA? Public Version 1.0 7

8 Background S/4 HANA SQS Group Limited Are you fit for S/4 HANA? Public Version 1.0 8

9 Background SAP Solutions SAP R/2 mainframe Each Phase represents a major change in architecture and code and the pending end of the earlier technology SAP R/3 client server Extended Support +4% SAP ECC enterprise architecture EHP1 EHP7 EHP SAP HANA ERP (BS) in memory cloud option Cloud S/4 Hana SQS Group Limited Are you fit for S/4 HANA? Public Version 1.0 9

10 A view on Digital Transformation & S/4 HANA Hasso Plattner (Chairman & co founder of SAP SE) This is where the world is going, direct access from anywhere to any type of data, whether it s a small piece of data or a small answer but a long algorithm to create that answer. The user doesn t care about this. Dr. Wieland Schreiner (SAP EVP responsible for SAP S/4 HANA) strong innovation can drive business. Enterprises can now easily connect to people, devices, and business networks to deliver new value to their customers the Internet of Things and Big Data become accessible to any business. Enterprises can dramatically simplify their processes and change them as needed to gain new efficiencies. SQS Group Limited Are you fit for S/4 HANA? Public Version

11 A view from Gartner on S/4 HANA Derek Prior, Duy D Nguyen, Massimo Pezzini: To be successful with SAP S/4 HANA, all CIOs and ERP leaders must address many issues, including application strategy, application integration strategy, software licensing, service provider experience and infrastructure options! Identify if and how S/4 HANA fits your postmodern ERP strategy, and update the strategy accordingly Evaluate the business impacts and benefits of S/4 HANA, and build these into a convincing business case Select expert consulting service providers Secure the necessary internal business and IT resources Build an implementation plan SQS Group Limited Are you fit for S/4 HANA? Public Version

12 Market Trend: Significantly More CIOs Expect to Increase Spending with SAP than Decrease (Courtesy: MORGAN STANLEY research) The ratio of spending on SAP was 4% in June 2016 from 6% in Oct Currently the spending ratio is increased to 19% in Jan 2017 on SAP. ORACLE SAP Microsoft Citrix Symantec Adobe Red Hat CRM VMware SQS Group Limited Are you fit for S/4 HANA? Public Version

13 Market Trend: Two thirds of companies surveyed are currently planning or discussing the adoption of S/4 HANA (Courtesy: PAC research) SQS Group Limited Are you fit for S/4 HANA? Public Version

14 The S/4 HANA Migration SQS Group Limited Are you fit for S/4 HANA? Public Version

15 Transitioning to S/4 HANA for existing SAP customers What from existing solution can be moved into the S/4HANA? e.g. On Premise ERP to the S/4HANA Cloud Edition (1611 / 1717 / ) Following are the tiers/areas that are impacted straightaway! GUI (Graphical User Interface) Business Functionality: SAP standard (configured) and customized Database & Table Design Interfaces A lot can be moved into the S/4 HANA! SQS Group Limited Are you fit for S/4 HANA? Public Version

16 S/4 HANA Migration Impact! Fiori User Interface User Interface User Interface Change User Interface Obsolete User Interface Enhanced Modifications Functionality Custom Modification Standard Functionality Change Modifications New Standard Functionality Optimized Standard Functionality Standard Functionality Obsolete Standard Functionality API Integration Change Integration Excluded API s DB Classic Data Model Change Compatibility Views Simplified Data Model E.g. On Premise SAP ERP 6.x / CRM / SCM / E.g. Cloud S/4HANA (1611 / 1710 /..) SQS Group Limited Are you fit for S/4 HANA? Public Version

17 Transitioning to S/4 HANA for existing SAP customers Database DB Classic Data Model Change Compatibility Views Simplified Data Model Two big changes! Only on SAP HANA DB: Migrate to HANA DB, as soon as possible. Weigh the impact from DB size! What is the quality of your existing data? It ll be accessed Real Time. Recommended to use Information Steward. Data Model / Table design changes removing redundancies SQS Group Limited Are you fit for S/4 HANA? Public Version

18 Transitioning to S/4 HANA for existing SAP customers Interfaces API Integration Change Integration Excluded API s Most of the standard integration touch points are supported and are mentioned in the simplification list. Dependencies from the Middleware in use, plus SAP XI / PI / PO. Use of PO is strongly recommended! Have to migrate from XI / PI to PO. Who can perform this migration? Following are the impact considerations: Obsolete remote function calls Changes at the Table or Field Level in S/4 HANA (e.g. Material Number length) SQS Group Limited Are you fit for S/4 HANA? Public Version

19 Transitioning to S/4 HANA for existing SAP customers Business Functionality: SAP standard (configured) and customized Data Modelling SQS Group Limited Are you fit for S/4 HANA? Public Version

20 Transitioning to S/4 HANA for existing SAP customers User Interface (Cloud version) Fiori User Interface User Interface User Interface Change User Interface Obsolete User Interface Paradigm shift! Fiori app access is based on Roles to the Fiori LaunchPad! Users need to get used to the new design of interface Some functionality also available on WebGUI accessed via LaunchPad Check on the obsolete T codes, don t be shocked! Refer the simplification list from SAP. SQS Group Limited Are you fit for S/4 HANA? Public Version

21 Transitioning to S/4 HANA for existing SAP customers Business Functionality: SAP standard (configured) and customized Enhanced Modifications Functionality Custom Modification Standard Functionality Change Modifications New Standard Functionality Optimized Standard Functionality Standard Functionality Need to address: Obsolete Standard Functionality Which standard or custom functionality you re using is obsolete in S/4 HANA? Which standard functionality that you re using is directly available in S/4 HANA? Which standard functionality that you re using is optimized in S/4 HANA? Which new functionality is useful for you to turn ON in S/4 HANA? Which existing custom functionality is now available in S/4 HANA as standard? Which existing customized functionality is not available in S/4 HANA but needs to be available due to business uniqueness or demand? Refer: Simplification Item Database Which functionality in S/4 HANA requires to be customized for you? SQS Group Limited Are you fit for S/4 HANA? Public Version

22 Transitioning to S/4 HANA for existing SAP customers Business Functionality: SAP standard (configured) and customized Streamlined Procure to Pay SQS Group Limited Are you fit for S/4 HANA? Public Version

23 Transitioning to S/4 HANA for existing SAP customers Business Functionality: SAP standard (configured) and customized Accelerated Plan to Product SQS Group Limited Are you fit for S/4 HANA? Public Version

24 Transitioning to S/4 HANA for existing SAP customers Business Functionality: SAP standard (configured) and customized Optimized Order to Cash SQS Group Limited Are you fit for S/4 HANA? Public Version

25 Transitioning to S/4 HANA for existing SAP customers Business Functionality: SAP standard (configured) and customized Enhanced Request to Service SQS Group Limited Are you fit for S/4 HANA? Public Version

26 Transitioning to S/4 HANA for existing SAP customers Business Functionality: SAP standard (configured) and customized Example of changes: Secondary elements are now G/L accounts. Accounting principles are now at a company code level. If the fiscal year differs, you will need to use ledgers to represent parallel accountings. SQS Group Limited Are you fit for S/4 HANA? Public Version

27 Transitioning to S/4 HANA for existing SAP customers Business Functionality: SAP standard (configured) and customized Example of changes: Only customers with customer/vendor integration in place can move to S/4HANA All customers and vendors in your SAP should be first converted into business partners Material ledger is mandatory for classic material valuation. Existing customers without ML can activate Material Leger during migration/ Go Live as well. For existing customers with active ML but not using transfer prices, migration program transfers data to the new S/4HANA tables. SQS Group Limited Are you fit for S/4 HANA? Public Version

28 Are you fit for S/4 HANA? SQS Group Limited Are you fit for S/4 HANA? Public Version

29 Introspection How different is your current SAP solution? Are you able adopt your business innovation in your current SAP solution? Is your data accessible anytime from anywhere? Are your processes too complicated & customized? Is your SAP solution rigid or agile to make it work for you for future? SQS Group Limited Are you fit for S/4 HANA? Public Version

30 Introspection Which way would you like to use your SAP? Have you started preparing for the S/4 HANA business case? How would you assess the impact for S/4 HANA migration? What is my roadmap for successful S/4 HANA migration? SQS Group Limited Are you fit for S/4 HANA? Public Version

31 Your own Transformation Journey to S/4 HANA! Make your SAP landscape fit for S/4 HANA Business Case Changes from your Innovation initiatives for survival & growth Create a system implementable business logic Redesign of the business processes & end to end Process Scenarios Critical & Core versus Generic & Outsourceable Impact assessment for S/4HANA migration Which existing functionality is impacted & must be retained? Which new features should be implemented (& enhanced, if needed)? How to ensure the changes are 100% perfectly implemented & tested E2E? Is it going to be step upgrades or direct migration? Roadmap for successful S/4HANA migration Do you have phases agreed between Business & IT teams? Do you have expert team assembled (BAs, Process owners, Core team)? De risk S/4HANA migration: When can you start the Impact Assessment health check? SQS Group Limited Are you fit for S/4 HANA? Public Version

32 S/4 HANA Migration Impact Analysis: Process Analysis of Requirement Specifications and change Plan Analysis of Current Solution Standard, customization, interfaces etc. Analysis of to be Functional Scope in target version e.g. EhP8 / SoH / S4HANA Identification of impacted critical Business Processes & Functionality Proceed to plan the Upgrade or Migration project Review by Business & IT teams Create Heat map detailed report on impacted areas Mapping with Process Library & Scenarios, used T Codes list, SQS Library of impacted functionality for target version, validation criteria, criticality analysis SQS Group Limited Are you fit for S/4 HANA? Public Version

33 S/4 HANA Migration Impact Assessment Example: Business Processes Mapping for ECC6 EhP 7 / EhP 8 Step Upgrade Human Capital Management

34 S/4 HANA Migration Impact Assessment Example: Business Processes Mapping for ECC6 EhP 7 / EhP 8 Step Upgrade Material Management => EM Logistic Finance & Controlling => EM Finance Travel & Expense Management

35 S/4 HANA Migration Impact Analysis: Example: Master Data Management Mapping for ECC6 S/4HANA Migration SQS Group Limited Are you fit for S/4 HANA? Public Version

36 S/4 HANA Migration Impact Analysis: Example: Procurement & Production Planning Mapping for ECC6 S/4HANA Migration Procurement Production Planning

37 S/4 HANA Migration Impact Analysis: Example: Procurement Scenario Mapping for ECC6 S/4HANA Migration

38 S/4 HANA Migration Impact Analysis: Example: E2E Scenario Mapping for ECC6 S/4HANA Migration

39 S/4 HANA Migration Impact Analysis: Example of Heat Map Business Areas MDM Sourcing & Procurement Inventory/ Stock movement Process Sales & Distribution Customized Business Process Impacted Key Business Processes Centralized Product Master with extended number range Business partner in Customer role Business partner in supplier role Business partner in employee role Self service procurement Material Valuation Statistical moving average price FIORI based transactions Stock report Goods Receipt or Goods movement Pricing Data model Global Trade Change the customized critical business processes to standard transaction offered by S/4 HANA Impact Assessment (H/M/L) H H H H H M H M H M H H SQS Group Limited Are you fit for S/4 HANA? Public Version

40 S/4 HANA Migration Impact Analysis: Example: Detailed report on criticality and complexity Complexity Analysis of Sub business process SQS Business Process Library mapping Identification of critical scenarios based on ST03N report and migration impact 40

41 S/4 HANA Migration Impact Analysis: Example: Detailed report on criticality and complexity (continued) Complexity Analysis Of E2E Business Scenario with mapped Sub Business Process Analysis of Process Documentation completeness SQS Group SQS SAP HANA Testing Capabilities, Solutions & Services 41

42 Why SQS for S/4HANA impact assessment 15+ years in SAP testing, in 15 countries, 500+ projects and 250+ Enterprise customers Proven track record testing is what do and only do! We can t fail in what we do Business Process & E2E Scenario based quality assurance approach Fast methodology to conduct the impact assessments for S/4 HANA Use of repository, accelerators and tools (including those provided by SAP) Reference of case studies for SAP Upgrade and S/4 HANA Migration Assessments No other interests while performing the Impact Assessment! SQS Group Limited Are you fit for S/4 HANA? Public Version

43 Get in touch today to find out how we can help you on your S/4 HANA journey sqs.com SQS Group Limited 7 11 Moorgate London, EC2R 6AF United Kingdom Phone: Fax: info@sqs.com Contact: Mark Bell Mark.Bell@sqs.com Thank you for your attention.