The next generation business suite. Rudolph Hois VP SAP S/4HANA April 13 th, 2015

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1 The next generation business suite Rudolph Hois VP SAP S/4HANA April 13 th, 2015

2 Don t get Trapped in Complexity Complex business processes Large organizations can spend between 40% and 80% of their time on non-valueadded activities ZB ZB (BCG, Complexity Report) Complex technology 73% percent of executives said the complexity of data is the largest IT challenge (Forrester, 2013 report) The digital universe is huge - and growing exponentially By 2020 the digital universe the data we create and copy annually will reach 44 zetabytes, or 44 trillion gigabytes. (IDC, The Digital Universe of Opportunities)

3 Customer s Digital Transformation with Suite on HANA Business Impact NEW BUSINESS MODELS Business Innovation New customers New markets Better PRODUCTS Optimize products Offer new products or services Better PROCESSES Improve single processes Replace single processes Change end to end processes Better DECISIONS Transparency Decision support Decision automation Better SPEED DB Exchange Characteristics Processes Biz Model new new new old new old

4 Innovation Customer Adoption is the proof Breaking boundaries Live customers in 42 countries 26 industries Any DB support Suite on HANA real-time business via optimizations Full Leverage of SAP HANA go-live projects OLAP & OLTP merge Search, Text analysis, Spatial, Pattern recognition, in small, medium & large Companies Changing the innovation s-curve S/4HANA 33% 60% 7% Business Suite / SoH Today s inflection point time

5 SAP s next Big Thing ERP R/3 R/

6 SAP S/4HANA Simplification Corner Stones Simplified Data Model Completely Fiori Guided Configuration

7 Simplified Data Model Simple Finance ONE line item table with full detail for all applications. No reconciliation by design Smaller memory footprint => no redundancy. Secondary cost elements are G/L accounts Fast multi-dimensional reporting possible => no replication to BW required Only one extractor to BW if in place

8 massively reduces complexity in IT landscape Compression Column store Any attribute as an index OLAP + OLTP together Traditional DB on HANA 593 GB GB

9 massively reduces complexity in IT landscape SAP Finance Simple Finance with aggregates and indices SAP Logistics Simple Logistics with aggregates and indices MSEG Master BKPF ACDOCA BSEG BSIS BSIK BSET MSEG MARC New Data MSTB MSKU MSSQ MSSA MSKA MARDH MKOL MSTBH LFC1 GLT0 COBK COEP COSP MKPF MARD MSTQ MSPR MSTE MSLB MCHB MSKAH MCHBH MSTQH MSLBH MSTEH MSKUH MARCH MSPRH MKOLH MSSQH MSSAH Traditional DB on HANA S/4HANA 593 GB GB 42.4 GB Simplified data model Semantically Rich Data Model Drop Performance Workarounds Keep all Information

10 Investment Protection Non Disruptive with Compatibility Views Program Reading Aggregate Program Reading Aggregate Compatibility views calculate on the fly Aggregate / Index Aggregate Aggregate Header Item DB Tables Suite on HANA SAP S/4HANA

11 Simplicity Translates to Business Benefits e.g. in Finance Earlier period closing Better forecasting Simulation of results or organizational structures Better insights into customer behavior Real time sales and costs analysis in any fashion Better service level in the customer facing applications

12 massively reduces complexity in IT landscape current historical Traditional DB on HANA S/4HANA Current 593 GB GB 42.4 GB 8.4 GB

13 massively reduces complexity in IT landscape current historical From 593 GB to 8.4GB > Impact on IT landscapes: Less replication Traditional DB on HANA S/4HANA Less Current network load 593 GB Earlier restart after failover GB 42.4 GB 8.4 GB

14 Simplicity for your landscape Less Replication, Bandwidth, Storage, Better Scale of Servers S/4HANA (estimate) Analytics without Replication ERP on anydb FI Postings Customers Products Profit Centers Suppliers ON-THE-FLY AGGREGATION 1 3 FI Postings Customers Products Profit Centers Suppliers Reduced Data Footprint Higher Throughput Full Flexibility

15 Combining transactions and analytics on a single in-memory platform Decisions and actions on old Data Multiple copies of the data ETL and batch processing efforts and costs Instant insight to action on live data One copy of the data No ETL and batch processing

16 Effort for implementation, training, The Spectrum of Analytics Use Cases separated as well Reports using generic BI-clients Pixel-perfect report Multidimensional report Dashboards (in-place) MS Office Planning Application Simulation Application Operational/ transactional Planning Insight-to-Action and decision support Decision automation and exception handling Analytical Apps with specific logic and UIs Simple List Read-only Planning/Simulation (writing data to non-operational stores) Write operational/transactional data

17 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

18 Virtual Data Model as Enabler for Multiple Consumption Types Generic SAP BI clients and Analytical Apps e.g. SAP BusinessObjects Analysis Office, Design Studio, SAP Lumira, Smart Business Cockpits Built-In Analytics: Hybrid Transactional and Analytical Applications e.g. SAP Smart Business cockpits Extraction to SAP BW* Enabler for Read-access for Fact Sheets Search Virtual Data Model Specific Models (Analytical Queries, Search Models, ) Virtual Data Model For Search, operational and analytical processing Customer Extensions Customer Extensions SAP HANA Platform Application Tables *This way SAP enables existing BW extractors to also support Simple Finance and other Innovations in SAP SAP S/4HANA External Sources / IOT

19 Simplicity for Users: Specific, Efficient, Responsive Simplified Data Model Completely Fiori Guided Configuration

20 Transactions Combined with Analytics and Prediction Simulation Decision Support

21 Anything Mobile Simulation Decision Support

22 SAP Fiori Intuitive User Experience and a responsive design Today Functional-based applications from: One transaction for multiple roles with too much and complex functionality Target Role-based applications to: Decomposed apps for each role with simple functions from: Multiple entry points for the user and inconsistent user experience to: One entry point for the User and UX following common design directions This is the current state of planning and may be changed by SAP at any time.

23 SAP NetWeaver Business Client UI theme designer SAP s Key UI Tools & Technologies SAP Fiori launchpad SAP GUI SAP Screen Personas SAP Enterprise Portal Flexible UI Designer Web Dynpro * ABAP/FPM 1 SAP Web IDE SAPUI5 SAP Mobile Platform Services UI Clients UI Tools UI Technologies DYNPRO GATEWAY * Harmonized in run & design time with WebClient UIF, 1 Floorplan Manager,

24 Simplicity for Implementation Simplified Data Model Completely Fiori Guided Configuration Cloud and On Premise

25 How SAP keeps the migration non disruptive for Simple Finance ERP Finance Client Suite on HANA Client Simple Finance Client SAP Business Suite EhP 7 Finance SAP Business Suite EhP 7 Finance incl. Accelerators BW Apps ERP Business Suite Simple Finance BW Apps AnyDB SAP HANA DB SAP HANA DB Simple Finance Package EHP like experience Technical and process adoption in phases Project took 55 days at SAP Any DB Based on InMemory Technology (e.g. HANA)

26 The road to SAP S/4HANA for customers 3 simple steps 1 st step: Technical Upgrade to latest release for existing customers 2 nd step: train users on new user experience -> thanks to SAP Fiori: role based, intuitive, minimal training required 3 rd step: Enablement of Digital transformation and deliver on the promise of RunSimple Migration & upgrade Paths SAP Business Suite AnyDB On-Premise SAP on HANA On-Premise SAP S/4HANA On-Premise SAP S/4HANA Managed Cloud SAP S/4HANA Public Cloud UPGRADE / DB MIGRATION Suite 7 Suite on HANA 1-time DB Migration (ideally) review of custom code 1-step upgrade to SoH (EHP7) UPGRADE-LIKE Suite 7 S/4HANA on-premise 1-step upgrade to S/4HANA 1-time Migration Report to activate innovations (AIM) DB EHP Add-On AIM today tomorrow MIGRATION any product S/4 Cloud Automated Migration of Business Data and Master Data Pre-defined migration packages with various Industry and LOB solutions that bundle software, services (including pre-engineered RDS packages for integration and configuration) and content

27 Thank you Rudolf Hois SAP SE