Uwe Grigoleit, SAP SE. Run simple with our next-generation business suite
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1 Uwe Grigoleit, SAP SE Run simple with our next-generation business suite
2 It s time for SAP s Next Big Thing R/ R/ Innovative Business Solutions Simplified data model Modern user experience Choice of deployment Non disruptive Journey 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 3
3 SAP S/4HANA 4 Key Enabler to run digital transformation for key enterprises Native Cloud SAP HANA AS THE UNDERLYING PLATFORM Ÿ OLAP & OLTP MERGE Ÿ IN-MEMORY COMPRESSION Ÿ INCREASE IN SPEED SAP HANA REAL-TIME & SIMPLIFIED SIMPLIFICATION OF APPLICATIONS AND UNDERLYING DATA MODEL Ÿ NO AGGREGATES & NO INDICES Ÿ HIGHER FLEXIBILITY & THROUGHPUT Ÿ DATA FOOTPRINT REDUCTION 10x smaller data footprint 7x higher throughput SAP FIORI 1800x faster analytics & reporting SAP FIORI AS THE USER EXPERIENCE (UX) PARADIGM; Ÿ CROSS-APPLICATION USER EXPERIENCE Ÿ WEB-BASED, ALL DEVICES Ÿ ROLE-BASED Ÿ DECISIVE 4x less process steps 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 4
4 S/4HANA The Next Generation Business Suite Business Networks Ariba Successfactors Hybris C4C Concur S/4HANA core (ERP) no aggregates, natively HANA, 100% Fiori, designed for the Cloud SAP Business Suite S/4 Products On-Premise On-Premise sxyz slog SoH sfin S/4HANA Cloud editions No modifications SAP managed Quarterly innovations Customer / Partner extensions HCP for extensions NW 7.40 AnyDB / HANA NW 7.40 NW 7.60 SAP HANA SAP HANA HCP / HCI 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 5
5 Investment protection Nondisruptive with compatibility views Program reading aggregate Program reading aggregate Compatibility views calculate on the fly Aggregate/Index Aggregate Aggregate Header Item DB tables SAP Business Suite powered by SAP HANA SAP S/4HANA 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 6
6 SAP SAP S/4HANA real-time analytics architecture Foundation for new class of applications SAP SAP S/4HANA applications Operational Reporting Applications (incl. insight-toaction) Query Tools Zero latency! SAP NetWeaver PLATFORM ABAP Layer SAP HANA Views (Virtual Data Model) Core Data Services (CDS) SAP HANA Database Layer Physical Tables Atomic instantaneous Pre-defined 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 7
7 Universal Journal in SAP Accounting powered by SAP HANA ERP Financials on classic database SAP Simple Finance powered by SAP HANA Processing Analytics Processing Analytics HANA views on the fly Totals & Indices Totals & Indices FI Line Items CO Line Items Universal Journal Data redundancy Reconciliation efforts Low flexibility + No reconciliation + High flexibility + High performance + Reduced data volume 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 8
8 SuccessFactors is the default HCM solution for S/4 HANA For new and existing customers considering S/4 HANA, SuccessFactors is the recommended HCM solution for S/4 HANA: Next-generation HCM solution + Next-generation Business Suite SAP ERP HCM customers may also continue to leverage their SAP ERP HCM implementations. Simplification is not planned for SAP ERP HCM SAP ERP HCM 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 9
9 SAP S/4HANA Simple Logistics Key Innovations Material Requirements Planning Inventory Management Material Valuation Available To Promise & Backorder processing Capacity Planning Fast MRP run, and new working model for MRP controllers based on decision support. Simplified data model resulting in increased throughput, flexible analytics at the most granular level. Principle of One, scalable material valuation capabilities, utilizing Material Ledger, that way customers can use multicurrencies, valuation methods per different accounting laws like GAAP. Enhance ERP by advanced ATP capabilities in APO, new coding to make it better, innovation benefit as functionality will be refreshed. New deployment option for bringing PP/DS on ERP, reducing integration efforts, allowing seamless master data & UI harmonization. Order Management & Billing Enable monitoring of end-to-end order-to-cash process & take actions for any exceptions, information on the exceptions to resolve the issues, lower TCO due to data model simplification, support for the most recent versions of business features such as FSCM Credit Management, GTS Foreign Trade, SFIN Revenue Accounting, new analytical capabilities. Procurement Increased efficiency in the Procure-to-Pay processes, new Analytical Apps & Spend KPI s, Ariba Network Integration for PO Order and IV. 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. Internal 10
10 Value Case: Digital transformation in Finance and Logistics Process Enriched Scalability I Real time I Prediction I Simulation User Empowered Instant insight I Contextual information I Personalized experience Live Data Granular I Responsive I accurate Finance Soft Close Improve management and control of operations anytime within period Allow immediate financial and business decisions (such as transaction-based revenue recognition, calculation of overheads) Business outcome: Revenue and margin increase through real-time profitability analysis Real-time revenue recognition for goods and services Key innovations: Manufacturing In Sync manufacturing Ensure physical reality in production and representation in IT system are always in sync Drive more frequent Inventory updates in real time Business outcome: Reduce costs with always correct inventory information, less exception handling Improve product quality with early detection of master data errors Key innovations: Universal journal Intra-period reconciliation Real-time inventory management Inventory information at granular level 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 11
11 Value Case: Business transformation in Industrial Manufacturing Recognize each consumer s journey as unique and provide a personalized experience on all channels while shopping Digital Digital Economy Economy 1. Connected Equipment 2. Big data 3. Industry 4.0/ Internet of things Digital Digital Core Core Digital Digital Transformation Transformation Connected Design Linking telemetry data with operational and design data provides complete lifecycle visibility for improved design business outcome: lower cost, higher quality Connected Manufacturing move from batch to real-time manufacturing processes such as MRP to always meet demand get real-time feeds via Internet of Thing to automate operations business outcome: increase cost efficiency and asset utilization Serving the segment of one better synchronization of processes, data and tasks across the highly complex and intertwined manufacturing and channel value chains Transition from reactive to proactive by detecting and analyzing patterns and root-causes as never before Improve agility in response new technologies such as 3D printing quickly adapting processes business outcome: higher revenues through faster time 2 market 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 12
12 Value Case: Business transformation in Wholesale Distribution Recognize each consumer s journey as unique and provide a personalized experience on all channels while shopping Digital Economy Digital Core Digital Transformation 1. Omni-channel Commerce 2. Internet of things 3. Big Data & Insightdriven Wholesale Distribution Omni-channel customer service Seamless customer relationship management, sales and service across different channels Addition of web-channel to enable convenient customer interaction via an additional channel business outcome: increase revenue and customer loyalty Connected Vending Machine Sales Serve your customers with products where and when they need them. Full insight into buying patterns Timely and efficient replenishment signals business outcome: Increased customer loyalty Profitability Optimization Full Insight into profitable customers / segments and margin destroyers Targeted, insight-driven action Optimized and tailored action (e.g. campaigns, special offers, address via different channels) to best utilize assets and resources business outcome: increase margin and profit 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 13
13 Value Case: Business transformation in Retail Recognize each consumer s journey as unique and provide a personalized experience on all channels while shopping Digital Economy 1. Mobile retailing 2. Omnichannel retailing 3. Insight-driven retailing Digital Core Digital Transformation omniscient Retailing turn into a true customer-centric retail model with a complete view on customer behavior, transactions, and demand signals across channels drive sales through actionable business insight provide customer service and seamless omni-channel fulfillment business outcome: increase revenue and customer satisfaction unified forecasting and out-of-shelf alerts Rely on one powerful forecasting engine for all predictive retail solutions get intra-day insights into forecast and map against real-time inventory and stock projection alert on out-of-shelf products with predictive innovation business outcome: reduce shrinkage and optimize inventory optimized assortments and promotions improve merchandising strategies through better assortment and pricing gain insights into key items and value drivers, detect product affinities business outcome: eincrease success for product launches and promotional duce revenue loss due to stock-outs 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 14
14 SAP S/4HANA Adoption Roadmap supported by services Advise/Plan Build/Launch Migrate Existing Migrate to SAP S/4HANA Identify Value Identify HANA business scenarios Define Adoption Roadmap Design Technical Architecture and migration scope Define SAP Simple Finance Roadmap Based on t-shirt sizes, fixed price, fixed scope Additional scope options e.g., minimized downtime New Install RDS for SAP ERP Foundation Extension + SAP Rapid Data Migration to SAP ERP Implement new innovations Installation and data transition for SAP Accounting powered by SAP HANA + Implement additional industry / LOB packages See next page Migration Factory (deployment on premise / in cloud) SAP Support and Premium Engagement (optional) 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 15
15 Customer adoption Do I have to do all at once? The way to S/4HANA is a roadmap for the customer. Adoption of S/4HANA can be a step by step process and does not have to be a big-bang project. Customers can decide to separate technical and business migration, i.e. move their system to S/4HANA, but adjust and reinvent business processes stepwise. Along with the stepwise move user interfaces can be changed sequentially as well, i.e. staggered end-user training. Moving to the cloud can substantially speed up the adoption roadmap of the customer Innovation adoption at customers individual pace 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 16
16 S/4HANA roadmap Value examples step by step Build S/4HANA Foundation by migrating to Suite on HANA Reduce complexity with Simple Finance Add Cloud Services Drive innovation cycles with Industry and LoB Solutions Business and user value Increased agility with real-time transaction and analytics More relevant and timely insight Better corporate alignment Faster period closing Better forecasting Simulation of results or organizational structures Real-time sales and cost analysis Rapid detection of fraud and non compliance Best-in-class solutions for Procurement, Workforce Management, Sales, Service, Marketing Optimized CAPEX vs. OPEX Rapid innovation cycles Higher user acceptance Benefit from SAP s proved industry and LoB solutions Simple interaction with business across networks Expand with HANA Cloud platform Innovate in your industry context at your speed Proof points 50% - 70% operational reporting improved productivity 2% - 5% manufacturing cycle time reduction 1% - 2% WIP stock reduction 30% - 40 % productivity improvement 1,000x faster reporting (from 15 min to 1 sec) 66% reduction in operating cost and increase in productivity and service level 100% compliance with regulatory reporting requirements 15%+ savings and 40% increased productivity in procurement with Ariba 15.2% decreased top talent turnover 30% reduction in days sales outstanding 65% improvement in employee engagement 1) 2015 SAP SE or an SAP affiliate company. All rights reserved. Source: 1) Top Tier Consulting and SF Research Analysis, Internal 17
17 S/4HANA roadmap Value examples step by step Build S/4HANA Foundation by migrating to Suite on HANA Reduce complexity with Simple Finance Add Cloud Services Drive innovation cycles with Industry and LoB Solutions IT Value Simplified landscape Simpler data footprint (OLAP & OLTP together) More efficient data processing and operations Lower cost for financial budgeting and manual report generation Simplified reconciliation Flexibility and scalability Built-in integration with On- Premise solutions Pre-packaged deployment offers Predictability through fixed pricing in HEC Flexibility to chose deployment model based your needs Open innovation platform Simpler system configuration with guided configurations Natively integrated industry/lob solutions Homogenous business semantics and data models Proof points 49% TCO reduction over 4 years 1) 3-4x smaller data footprint Up to 70% performance improvement of long processes 90% less time and effort with automatic revenue reconciliation 36% lower budgeting and forecasting cost with rolling forecasts in time and frequency 48% lower time (days) to create new reports with plan-actual comparisons 3-4 weeks for go-live from scratch 3 days to migrate SAP ERP to the cloud 11% reduction in TCO with SAP HCM 10.8% increased utilization rate 2015 SAP SE or an SAP affiliate company. All rights reserved. Source: 1) Forrester analysis Internal 18
18 SAP S/4HANA a new business suite for new business outcomes Decision making Business processes Technology Live business insight Role-based experience All devices Immediate business impact Real-time processes Digitally connected enterprise Best business practices New profit models Simplified data model Choice of deployment Open innovation platform Much lower TCO 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 19
19 Run simple with our next-generation business suite
20 Thank you 2015 SAP SE or an SAP affiliate company. All rights reserved.
21 SAP S/4HANA Extensibility Inside-out and Outside-in Approach On Premise Cloud In-App Extensibility Key-user Extensibility Custom fields and tables Change / add business logic (rules etc.) Analytics extensibility Custom logic with ABAP Web Editor (BAdIs) Managed ABAP designed for Cloud, lifecycle-stable Classic Full access to ABAP (e.g. SE80) In-app extensibility: Context aware extensions, focus on tight integration Side-by-side Extensibility with SAP HCP Enable a Fiori and Mobile user experience Integrate with other SAP Cloud Applications and 3 rd party solutions Leverage HCP application services (Mobile Documents, Output Management etc.) Full fledged development platform to build extension applications (Java, XS) Side-by-side extensibility with SAP HANA Cloud Platform: Learn from the outside, weave external content into your solutions Other SAP cloud solutions 3 rd party 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 22
22 SAP S/4HANA Integration Strategy On-premise 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 23
23 SAP S/4HANA On-Premise versus Cloud SAP S/4HANA On-Premise SAP S/4HANA Cloud Edition Licensing Model Traditional licensing Subscription licensing Infrastructure & Maintenance model The customer is in control of deployment and maintenance with dedicated own IT staff SAP provides the system and is responsible for the system maintenance. Speed of Innovation Customer has full control over speed of innovation, planned downtimes, changes within the system, changes of the system Cloud customers participate automatically on quarterly innovation upgrades Implementation Approach Highly individual requirements regarding business processes and customization. Technical know-how is available to maximize benefits of the On-Premise systems Willing to follow best-practices with standardized fine-tuning requirements to participate faster on future innovative business processes even with limited technical know-how. Custom Code Customer requires maximal flexibility in business critical processes which goes far beyond standardization. Adding business logic is not enough, even modification of SAP objects is required Customer is willing to limit his flexibility by just using the cloud extensibility functionalities to benefit from a always patched and upgraded operating system and the opportunity to introduce new innovations easily SAP SE or an SAP affiliate company. All rights reserved. Internal 24
24 Migration Approach General Tasks Transition to SAP S/4HANA - Overview SAP S/4HANA On-Premise (Q4 Delivery Simple Finance & Simple Logistics) SAP S/4HANA Cloud Enterprise Edition SAP S/4HANA Cloud LOB Edition Innovation User Interface Custom Code Analysis of customer processes & expectations Implementation of Innovation Adapt to new FIORI User Interface technology Adapt Custom Code to comply to S/4HANA Implementation Transition Approach for existing customer New set-up of a Cloud Target System incl. data migration Data Migration Services SAP Data Services using Data Migration Services for new customer Customer-specific consulting project Offering of standardized Data Migration Services SAP Landscape Transformation (SLT) Automated Data Migration Approach for LOB Scenarios* Additional Information Additional Migration related Information *) currently limited Data Migration Content available SAP need to support the first S/4HANA Cloud Project 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 25
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