Your journey into the digital age SUGEN Update November Senior Vice President, SAP S/4HANA, SAP SE

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1 Your journey into the digital age SUGEN Update November 2016 Sven Denecken Senior Vice President,, SAP

2 Disclaimer The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. Except for your obligation to protect confidential information, 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 presentation or any related document, or to develop or release any functionality mentioned therein. This presentation, or any related document 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 presentation is not a commitment, promise or legal obligation to deliver any material, code or functionality. This presentation 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 presentation is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP s intentional 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 SAP SE or an SAP affiliate company. All rights reserved. Public 2

Digitize beyond the core, embrace the digital

Transformation Internet of Things Big Data User

I Personalized experience Segment of 1 Business

Real time I Prediction I Simulation Live data

scale Social networks On-Premise Cloud Live People

3 Digitize beyond the core, embrace the digital economy Digital Economy Digital Core Digital Transformation Internet of Things Big Data User empowered Instant insight I Contextual information I Personalized experience Segment of 1 Business networks Devices Process enriched Scalability I Real time I Prediction I Simulation Live data Granular I Responsive I Accurate Lot size of 1 At scale Social networks On-Premise Cloud Live People 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 3

Transformational simplifications Simplified data model Simplified system landscape Simplified user experience Elimination of aggregates Simplification of master data Unification of tables Reduced

4 Transformational simplifications Simplified data model Simplified system landscape Simplified user experience Elimination of aggregates Simplification of master data Unification of tables Reduced number of systems and business warehouses Flexible access to data and data compression Fewer interfaces between systems Role-based engagement across the business Instant access to any business insight Simple design across business processes Example: Supply Chain* inventory management Classic SAP Business Suite 11 Inventory aggregate tables 2 Document aggregate tables 11 History aggregate tables 2 Material master tables 1 Document table 26 3 Accelerate execution 2 Material master tables Example: Reduced Data Footprint** Reduce total cost of ownership ** SAP Benchmarking Services Example: Finance - receivables management SAP GUI SAP Fiori UX Delta Duration % (seconds) Clicks % Screen changes % Fields filled % Increase user productivity 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 4

1610 Key Innovations Consistent SAP Fiori UX Harmonized User Experience Industry to Core (DIMP, Oil, Retail) Extend Core Functionalities Finance in Core Integrate Financial Operations for

Management of Strategic Initiatives End 2 End Insight to action based on Harmonized UX across the 1610 Release Central Landing Pages, Overview Pages, Co-Pilot and Embedded Analytics Long

dashboard for project manager Simplified and SAP HANA optimized data model Simplified authorization concept Efficient Procurement Shopping Experience Integrated Quality Management Efficient

Activity and task management functions Intuitive UIs for recording the results of different types of inspection characteristics New roles with SAP Fiori UX CDS views for quality inspections

4 Back-Order Processing: New winner, gainer loser concept Product Allocation: Reduction number of customizing and data maintenance steps Release for Delivery: New SAP Fiori app Effective Order

Production and Procurement Planning Sales order fulfillment monitor Simplified billing processes Insight to action Maintain compatibility information between software and other components of a

6 1610 Key Innovations Consistent SAP Fiori UX Harmonized User Experience Industry to Core (DIMP, Oil, Retail) Extend Core Functionalities Finance in Core Integrate Financial Operations for Compliance Optimized Portfolio & Project Mgmt. Management of Strategic Initiatives End 2 End Insight to action based on Harmonized UX across the 1610 Release Central Landing Pages, Overview Pages, Co-Pilot and Embedded Analytics Long Material Number Harmonization of article and material Retail in the core IS Oil enabled Universal Journal Central Finance New cash management Parallel valuation: transfer pricing Overview dashboard for project manager Simplified and SAP HANA optimized data model Simplified authorization concept Efficient Procurement Shopping Experience Integrated Quality Management Efficient Supply Chain Integrated Extended Warehouse Mgmt Warehouse Logistics Processes advanced ATP Product Strategy Allocation Procurement Overview Page Data integrity with SAP Ariba solutions Activity and task management functions Intuitive UIs for recording the results of different types of inspection characteristics New roles with SAP Fiori UX CDS views for quality inspections and master data Eliminate the need to replicate data New deployment option Process and technical simplifications compared to SAP EWM 9.4 Back-Order Processing: New winner, gainer loser concept Product Allocation: Reduction number of customizing and data maintenance steps Release for Delivery: New SAP Fiori app Effective Order Management & Billing Streamline Order Processing Embedded Software in R&D Lifecycle of Embedded Control System Real Time Inventory Management Physical Inventory Count Accelerated MRP Production and Procurement Planning Sales order fulfillment monitor Simplified billing processes Insight to action Maintain compatibility information between software and other components of a product Check product structure for compatibility of embedded software New simplified Data Model - MATDOC Real-time processing of inventory postings Posting of finest granularity like handling unit, lot size 1 Real time data from all areas of material management Tasks focused on exceptions Real Time Simulation Decision support Link to Release Landing Page 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 6

7 Example of Accelerated roadmap Area Manufacturing (2/6) Available to Promise (ATP) 1610 Recent Innovations* Until 1709** Product Direction** Product Vision** Backorder Processing (BOP) SAP Fiori apps for setup the BOP run: Configure BOP segment Configure BOP variant Schedule BOP run SAP Fiori app for results display Monitor BOP run SAP Fiori apps for interactive confirmation Release for Delivery Configure Order Fulfillment Responsibilities Product Allocation (PAL) for Sales Configure PAL object Assign PAL data to material or materiallocation combination Manage PAL planning data Backorder Processing Enhance BOP BOP analytics: simulate selection and sorting Enable handling of stock transfer documents Automatic exception handling (fallbacks) Provide extensibility features Enhance Release for Delivery app Multiple schedule lines Analytical entry screen (bubble chart) Product Allocation (PAL) Extensibility and flexibility Instance-based authorization Alternative sources of supply ATP: product availability check (PAC) PAC analytics: reusable SAP Fiori-based explanation and simulation component Rules-based ATP (RBA) Alternative plants Determination of allowed alternatives Mass check of allowed alternative plants Selection of best-alternative plant Integration of RBA result in SD sales order Replace existing line item Add additional subitem(s) Backorder Processing Interactive BOP based on Release for Delivery app BOP analytics for ATP result Product Allocation (PAL) for Production PAL analytics: Explanation component Decision Support to optimize process setup Machine-learning capabilities in Rules-based ATP in order entry and backorder processing Comprehensive embedded analytics for Rulesbased ATP including explanation and simulation capabilities Rules based ATP (RBA) Comprehensive embedded analytics for Rulesbased ATP including explanation and simulation capabilities. Decision Support to optimize process setup Profitability-based ATP Product Allocation (PAL) PAL for Production, External Procurement Modelling Constraints Production and Supplier Capacity in Multi-Level Scenarios PAL for Transportation and Warehousing Transportation & Shipment Scheduling Reuse sophisticated scheduling capabilities of the integrated TM-solution * Feature highlights for See Feature Scope Description of 1610 for full scope. ** This is the current state of planning and may be changed by SAP at any time without notice SAP SE or an SAP affiliate company. All rights reserved. Public 7

Enterprise Search in Benefits Efficient information access / user-centric discovery through a simple user interface Take advantage of real-time data for decision making No additional costs or 3 rd

Access to information across multiple systems; navigation along object relations, source systems and transactions. Ease of creating, maintaining Search Models.

8 Enterprise Search in Benefits Efficient information access / user-centric discovery through a simple user interface Take advantage of real-time data for decision making No additional costs or 3 rd party systems Key capabilities today Full-text search for business objects and documents Features Like Ranking, Boosting and Fuzzy Logic. Access to information across multiple systems; navigation along object relations, source systems and transactions. Ease of creating, maintaining Search Models. Planned Innovations Document viewer Text Analysis Integration Migration to Open CDS based Search Models Semantic annotations in Open CDS Search Models to choose the relevant search algorithm specific for the semantic of the attributes Including geospatial data as search facets and for boosting Natural language search Ranking Cockpit to simulate relevance of ranking in search results SAP SE or an SAP affiliate company. All rights reserved. Public 8

9 One User Experience Single entry point via SAP Fiori launchpad Access to User Menu & SAP Menu Domain specific infos and actions Enter details and explore in depth Your custom transactions This is the current state of planning and may be changed by SAP at any time SAP SE or an SAP affiliate company. All rights reserved. Public 9

SAP Fiori: The User Experience Of The Award-Winning User Interface Me Area Viewport

11 embedded analytics Solution Overview embedded analytics: Delivers contextualized analytics for SAP S/4HANA embedded within the context of work and tailored to business needs and roles embedded analytics Consists of Virtual Data Models (based on CDS Views) covering role based operational reports for lines of business BUSINESS USERS POWER USERS DEVELOPERS Comes with tools for Business Users, Power Users and Developers to analyze data and manage the lifecycle of reports and KPIs FRONT END SAP SMART BUSINESS COCKPITS SAP Highlights Release 1610 onpremise: MULTI- DIMENSIONAL REPORTS QUERY/VIEW BROWSER ANALYTICAL FIORI APPS QUERY DESIGNER SAP FIORI KPI MODELER ABAP FOR ECLIPSE Continuous extension of the Virtual Data Model more than 6000 views and more than 120 new Embedded Applications (KPI s) planned View Browser Fiori Application to show all delivered Views BACK END Spend of contract Incoming Sales Order PO Avg. Delivery Time Virtual Data Models Non-managed purchasing spend. SAP Smart Business and Analysis Path Framework Integration *CDS: Core Data Service 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 11

12 On Premise Conversion is a tool supported approach Prepare phase Realize phase T 1 T 2 T 3 T 4 t 5 t 6 t System requirements Maintenance planner Prechecks Custom code migration worklist Software update manager (SUM) Application-specific follow-on activities Simplification list Database migration Software update Data conversion Your landing page: SAP SE or an SAP affiliate company. All rights reserved. Public 12

13 System conversion: Custom code migration worklist Discovery / Prepare Phase Realize Phase t 1 t 2 t 3 t 4 t 5 t 6 t System Requirements Maintenance Planner Pre-Checks Custom Code Migration Worklist Software Update Manager (SUM) Application specific follow-on activities Simplification List On-Premise Database Migration Software Update Data Conversion 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 13

System conversion: Custom code related process i TEC300 (L1) S/4HANA Custom Code Adaptation Prepare Phase Realize Phase t 1 t 2 t 3 t 4 t 5 t 6 t System Requirements Maintenance Planner Pre-Checks

14 System conversion: Custom code related process i TEC300 (L1) S/4HANA Custom Code Adaptation Prepare Phase Realize Phase t 1 t 2 t 3 t 4 t 5 t 6 t System Requirements Maintenance Planner Pre-Checks Custom Code Migration Worklist Software Update Manager (SUM) Application specific follow-on activities Unicode Conversion Simplification List, on-premise edition Database Migration Software Update Data Conversion Custom code evaluation SAP HANA checks SAP S/4HANA checks Functional adaptation Performance tuning Remove obsolete code based on Usage Procedure Log (UPL) Check SAP HANA related changes like ORDER BY Check related changes like data model changes Adapt custom code to SAP HANA and related changes Tune performance of critical database queries Adapt modifications in SPDD/SPAU 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 14

Custom code: Overview 1) Get transparency on your custom code 2) Remove waste 3) Analyze the impact, and create a plan 4) Do the required custom code changes Custom Code Guide Tools: Custom code

15 Custom code: Overview 1) Get transparency on your custom code 2) Remove waste 3) Analyze the impact, and create a plan 4) Do the required custom code changes Custom Code Guide Tools: Custom code lifecycle management Usage and procedure logging (UPL) Code Inspector ABAP test cockpit (ATC) Custom code migration worklist (new) SAP SE or an SAP affiliate company. All rights reserved. Public 15

16 Custom code: Custom code migration worklist and Code Inspector SAP Service Marketplace Custom Code Check Content SAP Notes File Custom Code extract file File Custom Code Import RFC Import Simpl. DB Custom Code Migration Worklist Custom Code Analyzer Code Inspector Variant Custom Code Analysis Results Code Inspector Results (esp. relevant for MATNR length extension) SAP NetWeaver 7.50 system Any DB Source System 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 16

The customer will be able to use those results for further internal discussions as well as follow-ups with SAP.

17 S/4HANA Readiness Check 2017 preview SAP is working on a dashboard solution to ease the consumption of the S/4HANA Readiness Check results. The customer will be able to use those results for further internal discussions as well as follow-ups with SAP. The customer will still receive a comprehensive PPT which includes the workshop results as well as the Readiness Check details (incl. various attachments) SAP SE or an SAP affiliate company. All rights reserved. Public 17

18 Schedule* Cloud (on premise) Cloud 1611 Cloud 1702 Cloud 1705 Cloud (on premise) Q4/ FPS FPS SPS SPS SPS SPS05 Quarterly innovation cycle Annual innovation cycle Available today Continuous innovation FPS = feature pack stack SPS = support pack stack *This is the current state of planning and may be changed by SAP at any time without notice SAP SAP SE SE or or an an SAP SAP affiliate company. All All rights rights reserved. reserved. Customer Public 18

19 Cloud Modular approach Option to Start with a Subset (e.g. Finance) and Expand the Solution Professional Services Cloud * Marketing Cloud Finance Cloud NEW in 1611 Enterprise Management Cloud Manufacturing Cloud* * SAP Hybris Cloud for Customer * This is the current state of planning and may be changed by SAP at any time without notice SAP SAP SE SE or or an an SAP SAP affiliate company. All All rights rights reserved. reserved. Customer Public 19

20 Simplify your business with Cloud Fast Innovations Flexible Deployment Dynamic Extensibility Native Integration Effective Governance Guided Configuration SAP SAP SE SE or or an an SAP SAP affiliate company. All All rights rights reserved. reserved. Customer Public 20

Cloud 1611 content overview Enterprise Management Cloud Finance Cloud Professional Services Cloud Marketing Cloud Edition for main ERP scenarios: Streamlined Procure to Pay Accelerated Plan to

21 Cloud 1611 content overview Enterprise Management Cloud Finance Cloud Professional Services Cloud Marketing Cloud Edition for main ERP scenarios: Streamlined Procure to Pay Accelerated Plan to Product Optimized Order to Cash HR Connectivity Core Finance Project Services Edition for main ERP scenarios: Streamlined Procure to Pay Optimized Order to Cash HR Connectivity Core Finance Edition for the professional services industry Project Services Streamlined Procure to Pay Optimized Order to Cash HR Connectivity Core Finance Edition for the marketing LoB Analyze Consumer and Customer Start Mail-Campaign and analyze return rate Marketing recommendations Marketing Planning Marketing Executive Dashboard High standardization, cloud TCO and scalability, side-by-side extensibility Targeted at enterprises that want to start their Digital Core from Finance Specific to the need of a modern project service management Specific to the need of a modern marketer Integrates with SAP SuccessFactors Employee Central, SAP C4C, and SAP Ariba network Integrates with SAP SuccessFactors Employee Central, SAP C4C, and SAP Ariba network Integrates with SAP SuccessFactors Employee Central and SAP Ariba Network Integrates with SAP Hybris commerce* and SAP C4C SAP SAP SE SE or or an an SAP SAP affiliate company. All All rights rights reserved. reserved. Customer Public 21

1611 Examples of Key innovations* to faster adoption Resource Management - Project-Based Services Intrastat Processing Intercompany Processes - Project-Based Services Employee

Insights General Ledger Allocation Cycle Quality management Fiori Overview pages for Procurement Social Collaboration Integration Data Protection and Privacy Information Lifecycle

22 1611 Examples of Key innovations* to faster adoption Resource Management - Project-Based Services Intrastat Processing Intercompany Processes - Project-Based Services Employee Integration Enablement Data Aging Advanced available to promise (aatp) Finance Cloud Consistent SAP Fiori user experience Integration to SAP RealSpend and SAP Financial Statement Insights General Ledger Allocation Cycle Quality management Fiori Overview pages for Procurement Social Collaboration Integration Data Protection and Privacy Information Lifecycle Management Color legend: New innovations * Key innovations do not reflect licensing SAP SAP SE SE or or an an SAP SAP affiliate company. All All rights rights reserved. reserved. Customer Public 22

23 Deployments with Best Practices using SAP Activate Deployment Tools - Cloud Discover Prepare Explore Realize Deploy Run Continuous innovation with Content Lifecycle Management Experience Trial Fit to Standard Analysis Scope and configure Migrate, Integrate, Test Onboard and Deploy Operate, Monitor, Support SAP Roadmap Viewer Leverage end-to-end deployment roadmap S/4HANA Cloud Trial System SAP Best Practice Explorer Discover Sample Processes Evaluate available Best Practices Configuration Tools Migration Cockpit Test Tool Implement Customer Requirements via Guided Configuration Upload Data with predefined Templates Test Processes based on automated scripts Embedded in S/4HANA Cloud 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 23

24 Deployments with Best Practices using SAP Activate Deployment Tools On-Premise Discover Prepare Explore Realize Deploy Run Experience Trial Fit 2 Standard based on model company Scope and configure Migrate, integrate, extend, test Onboard and deploy Operate, monitor, support SAP Roadmap Viewer Leverage end-to-end deployment roadmap S/4HANA Trial System SAP Best Practice Explorer Discover Sample Processes Evaluate available Best Practices Solution Manager Capture your requirements and adapt process diagrams Manage changes in your implementation project Solution Builder Kick start your implementation with preconfigured content 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 24

of API's published for 1611: S/4HANA Cloud: 13 Services, S/4HANA Finance: 1 Service, S/4HANA

25 API Business Hub Whitelisting of remote APIs for S/4HANA Enterprise Cloud Key Messages All whitelisted remote APIs for S/4HANA Cloud are published on the SAP API Business Hub Current number of API's published for 1611: S/4HANA Cloud: 13 Services, S/4HANA Finance: 1 Service, S/4HANA Marketing Cloud: 4 Services SAP SE or an SAP affiliate company. All rights reserved. Public 25

26 Integration S/4HANA Cloud with third-party applications Roadmap: Public API's ǂ (1/2) Recent innovations* 1702 Planned Q1/2017** API's new API's 1705 Planned Q2/2017** 1708 Planned Q3/2017** Cloud foundation First content for SAP API Business Hub documentation of whitelisted APIs (to be enhanced) Sourcing and Procurement OData-based APIs for procure-to-invoice integration (creation and retrieval of documents) API based on service-oriented architecture (SOA) for supplier invoice inbound Master data OData-based APIs for synchronous read Material master (master data management [MDM]) Business partner (MDM) Sales and distribution Create sales order Sell from stock process integration Finance Provide API for inbound and outbound data transfer First APIs for general ledger, asset accounting, and cash management Sourcing and Procurement OData-based APIs for creation and retrieval of Service entry sheet Sourcing Purchasing category Scorecard (retrieval) OData-based APIs for procure to invoice (update and deletion of documents) Master data OData-based APIs for create, read, update, delete (CRUD) Material master (MDM) Business partner master including supplier and vendor (MDM) Sales and distribution Third-party integration for opportunity-to-order process Finance Provide API for inbound and outbound data transfer First APIs for intercompany processes and SAP Ariba solutions Additional APIs for general ledger, asset accounting, and cash management 51 newapi's 1708 and later Sourcing and Procurement OData-based APIs for sourcing, service entry sheet, and purchasing category (update and deletion of documents) OData-based APIs for creation and retrieval of procurement info record, quota arrangements, and source list ǂ Each process or item mentioned here could have multiple APIs please refer to SAP API Business Hub for the available APIs. *Feature highlights for Enterprise Cloud See Feature Scope Description of S/4HANA Cloud 1611 for full scope. **This is the current state of planning and may be changed by SAP at any time SAP SE or an SAP affiliate company. All rights reserved. Public 26

27 Integration S/4HANA Cloud with third-party applications Roadmap: Public API's ǂ (2/2) Recent innovations* 1702 Planned Q1/2017** API's new API's 1705 Planned Q2/2017** 1708 Planned Q3/2017** Master data Asynchronous write APIs Material master (master data management [MDM}) Business partner (MDM) Manufacturing OData-based APIs Create outbound deliveries Read Inspection specification, method Planned, process, and production order; production order confirmation Outbound delivery Work center Release Production orders and operations Create, read, update, delete (CRUD) planned independent requirement BAPIs for retrieving goods movement and inventory data Manufacturing OData-based APIs (CRUD) for production order, production order operation, and planned order APIs for quality management and inspections (BUS2045, CRUD), logistics execution, production planning, and available to promise HR Employee data and user data import from thirdparty systems with API Integration with third-party payroll systems for payroll postings Manufacturing OData-based APIs (CRUD) for inventory management Web services based APIs (CRUD) for inventory management 51 newapi's 1708 and later ǂ Each process or item mentioned here could have multiple APIs please refer to SAP API Business Hub for the available APIs. *Feature highlights for Enterprise Cloud See Feature Scope Description of S/4HANA Cloud 1611 for full scope. **This is the current state of planning and may be changed by SAP at any time SAP SE or an SAP affiliate company. All rights reserved. Public 27

28 Where to go for more information Best Practices Explorer Trials Release Info Roadmaps SAP Help Portal Join the SAP S/4HANA Community S/4HANA Cookbook FAQ opensap SAP Learning Hub SAP SAP SE SE or or an an SAP SAP affiliate company. All All rights rights reserved. reserved. Customer Public

29 2016 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see for additional trademark information and notices. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have 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 SE s or its affiliated companies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies 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. All forwardlooking 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 SAP SE or an SAP affiliate company. All rights reserved. Public 29

Week 3 Unit 3: Adapting Your Custom Code

Week 3 Unit 3: Adapting Your Custom Code System conversion: custom code migration worklist Discovery / Prepare Phase Realize Phase t 1 t 2 t 3 t 4 t 5 t 6 t System Requirements Maintenance Planner Pre-Checks