Value and Roadmap of the Next Generation Suite. Matthias Vogel Solution Director, SAP S/4HANA Digital Supply Chain

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1 Value and Roadmap of the Next Generation Suite Matthias Vogel Solution Director, SAP S/4HANA Digital Supply Chain

2 Value and Roadmap of the Next Generation Suite Public Matthias Vogel

3 Legal Disclaimer The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. 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 document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation 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 document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document 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 document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP s willful misconduct 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. Disclaimer: This road map represents SAP s current plan, but is subject to change without any prior notification. Certain planning constraints, such as regulatory and licensing issues, are outside of our control and may impact the timelines SAP SE or an SAP affiliate company. All rights reserved. Public 3

4 The World is Increasingly Digital and Networked Last 2 years Expectation for next 5 years Last 2 years 90% Of the world s data has been generated 1 85% of CFO s Believe success will depend on adaption to complexity and innovation speed 6 40% Growth in adoption of business networks 2 By 2020 End of 2020 In billion Mobile users in the world billion Things will be connected 3 38% Of workloads are processed in the cloud 5 1 ScienceDaily, May 22, Technology Adoption Report on Business Networks, Ardent Partners, Internet of Things (IoT) 2013 to 2020 Market Forecast: Billions of Things, Trillions of Dollars, IDC, Statista, CFO Research SAP SE or an SAP affiliate company. All rights reserved. Public 4

5 SAP S/4HANA Digital Core Built for live business Reliable, scalable, and instant insights into all business data & flow is the foundation for Live Business in the Digital Economy, while providing the integration base for Internet of Things, Networks, Big Data & Social. Internet of Things People Devices The Digital Core SAP S/4HANA Business networks Big Data Social networks 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 5

6 The Digital Core is the Foundation to Running a Live Business Immediate Business Digitizing products and services around integrated digital capabilities or delivery of digital content. Intelligent & Smart Business Algorithmic business is an accelerator and extension of digital business. Integrated & Connected Business Economics of connections creates more value through increased interactions and collaboration between business, people, IoT Empowering users doing business with insights to act in the moment anywhere, anytime. Immediate access to unified data in real time providing insight to action. Automation with predictive suggestion & simulations based on pattern and analysis to deliver the right information, product, service or action at the right time. Connections are at the core of digital and algorithmic business models fully connected to consumer, customers, suppliers and workforce. Improved Data Quality Evolution in how systems deal with data, and the machines and people that create and consume this data Data enrichment by digital capabilities and IoT e.g. RFID, GPS, QR code, etc. Valuable insight based on sensors & measurement SAP SE or an SAP affiliate company. All rights reserved. Public 6

7 SAP S/4HANA Our Next-Generation Business Suite SAP S/4HANA Enterprise Management build the next-generation business suite» Innovative in-memory Database» New architecture and data models» Renewed applications» New UI technology» Cloud & on-premise deployment models» Natively integrated SAP S/4HANA is a new product line (it is not a legal successor of any SAP Business Suite product) The classical SAP Business Suite & SAP ERP is a separate product line and will still be available SAP SE or an SAP affiliate company. All rights reserved. Public 7

8 SAP S/4HANA Suite Introducing the next generation core and lines of business solutions for the digital economy Suite SAP S/4HANA FINANCE SAP S/4HANA HUMAN RESOURCES SAP S/4HANA SOURCING & SAP S/4HANA MANUFACTURING SAP S/4HANA SUPPLY CHAIN PROCUREMENT Products Digital Core S/4HANA Enterprise Management Products Suite SAP BusinessObjects Planning and Consolidation, add-on for S/4HANA SAP S/4HANA Fin. for cash mgmt.; SAP S/4HANA Fin. for central finance foundation; SAP Real Estate Mgmt. for SAP S/4HANA, office, retail, and industrial property mgmt. option; SAP Real Estate Mgmt. for SAP S/4HANA, residential property mgmt. option; SAP S/4HANA Fin. for in-house cash, SAP S/4HANA Fin. for treasury and risk mgmt.; SAP S/4HANA SALES SAP Sales and Service Order Processing for SAP S/4HANA SAP S/4HANA Sales for incentive and commission management SAP S/4HANA SERVICE Streamlined Procure to Pay SAP Purchase Order Processing for S/4HANA Accelerated Plan to Product SAP S/4HANA for subscr. invoicing, SAP S/4HANA for subscr. customer financials, SAP S/4HANA for subscr. billing SAP S/4HANA MARKETING AND COMMERCE Optimized Order to Cash SAP S/4HANA Manufacturing for planning and scheduling Enhanced Request to Service SAP S/4HANA Asset Management for EHS incident management SAP S/4HANA Asset Management for EHS health and safety management SAP S/4HANA Asset Management for environment management SAP S/4HANA Asset Management for Linear Asset Management SAP S/4HANA Asset Management for Work Clearance Management SAP S/4HANA ASSET MANAGEMENT SAP S/4HANA Supply Chain for extended warehouse management; SAP S/4HANA for advanced ATP HR Connectivity Core Finance SAP S/4HANA for comm. proj. mgmt. workspaces SAP S/4HANA for comm. proj. cost and revenue planning SAP S/4HANA for comm. proj. issue and change mgmt. SAP Portfolio and Proj. Mgmt. for SAP S/4HANA SAP S/4HANA R&D for Enterprise Product Formulation SAP S/4HANA R&D for Enterprise Product Engineering SAP S/4HANA RESEARCH & DEVELOPMENT Cloud for Sales Cloud for Service Cloud for Marketing INDUSTRIES 2016 SAP SE or an SAP affiliate company. All rights reserved. Public * Roadmap 8

9 SAP S/4HANA Interpreting the scope in terms of products 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 9

10 User Experience for SAP S/4HANA SAP Fiori Design Evolution SAP Fiori 2.0 is mandatory for SAP S/4HANA 1610 onwards with common user experience Me-Area Replacing former shell header menu Shows recent activities now Anchor bar navigation Replacing group menu Shell header Revised, launching notification and me-are viewports and Co-Pilot window. Provides navigation menu when app is launched by clicking on title Notifications Shown in separate viewport that opens on clicking repective icon in shell header Links Option to show apps as links in a tile group Me-area Workspace Notifications 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 10

11 SAP S/4 HANA massively reduces complexity in IT landscapes (The below figures are only for illustration purposes) SAP S/4 HANA Finance Finance with aggregates and indexes SAP S/4 HANA Materials Management & Operations Logistics with aggregates and indexes Master ACDOCA BSEG MATDOC MSEG MARC Data BKPF BSIS BSIK BSET 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 database 500 GB SAP HANA platform SAP S/4HANA 100 GB 40 GB Simplified data model Compression Keep all information Any attribute as an index OLAP and OLTP together 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 13

12 SAP S/4HANA Embedded Analytics Embedded Analytics Deliver contextualized analytics for SAP S/4HANA embedded within the context of work and tailored to business needs and roles embedded analytics Consist of Virtual Data Models based on Core Data Service (CDS) views covering role based operational reports for lines of business BUSINESS USERS POWER USERS DEVELOPERS Come with tools for Business Users, Power Users and Developers to analyze data and manage the lifecycle of reports and KPIs Highlights 1610 On-Premise FRONT END SAP SMART BUSINESS COCKPITS 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) View Browser Fiori Application to show all delivered Views SAP Smart Business and Analysis Path Framework Integration BACK END Spend of contract Incoming Sales Order PO Avg. Delivery Time SAP S/4HANA Virtual Data Models Non-managed purchasing spend SAP SE or an SAP affiliate company. All rights reserved. Public 14

13 SAP S/4HANA You have complete Choice of deployment 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 15

14 SAP S/4HANA Value advisor 35 potential value drivers for compelling proposition Not to forget IT benefits leading to lower TCO SAP SE or an SAP affiliate company. All rights reserved. Public 16

15 SAP S/4HANA Sales Value Example: Order and Contract Management E2E Business Process: ORDER AND CONTRACT MANAGEMENT Solution Capabilities: SALES MASTER DATA MGMT. SALES CONTRACT MANAGEMENT SALES ORDER MGMT. & PROCESSING BILLING & INVOICING CLAIMS, RETURNS & REFUND MGMT. SALES MONITORING & ANALYTICS Leverage simplified data model and central Business Partner approach. Create, modify, or display sales documents with work lists, manage sales quotations, orders, credit and debit memo requests. Access documents quickly Innovation & Highlights: Manage Sales contracts in just seconds Take immediate action using real-time analytical results to effectively manage Sales Contracts and Sales Quotations Identify bottlenecks & issues with resolution proposals in the Sales Order Fulfillment Cockpit for maximizing no-touch order rate. Leverage worklists with smart links to related documents and transactions to streamline the flow Analyze your Sales Order Conversion Rate Settle rebate flexibly using Condition Contract Settlement without any index table. Manage Billing Document efficiently with seamless integration to related operational transactions and use Intrastat Processing for Foreign Trade activities Use new Condition Contract Settlement Reduce customer service & support cost by automating and streamlining return processes Monitor Order-to-Cash Process Performance and execute Sales Analysis on the fly and display contextual information, or analyze your sales quotation conversion rate, or open sales orders and deliveries and track overall O2C performance in your company Use new Sales Overview Page 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 18

16 SAP S/4HANA Manufacturing Value Proposition 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 19

17 SAP S/4HANA Supply Chain Value Proposition 20/ SAP SE or an SAP affiliate company. All rights reserved. Public 20

18 SAP S/4HANA Customer adoption Status as of January 25 th ,777 Licensed Customer Scenarios 570 Live Customers Active Customer Projects In all 25 industries & 80 countries 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 21

19 WEIG Group: Creating New Business Models with SAP S/4HANA Company WEIG Group Headquarters Mayen, Germany Industry Mill products Products and Services Paper, cartonboard and folding carton products, packaging, and recycling Employees 1,500 Revenue > 500 million Web Site Partner SAP Digital Business Services Objectives Evolve from a product-centric industrial enterprise to a platform provider offering customer-specific products Accelerate decision making with real-time business data insights Integrate customers and partners in real time in an easy and simple way Why SAP SAP S/4HANA as the only IT platform to enable the digital transformation Quick and secure path to innovation with SAP Value Assurance service packages for SAP S/4HANA from SAP Digital Business Services Resolution Performed system conversion from the SAP ERP application to SAP S/4HANA using the Software Update Manager tool In a first step, went live with financials, materials management, and procurement; and in a second step, upgraded to SAP S/4HANA 1610 to include new cash management, sales and distribution, plant maintenance, project systems, and environment, health, and security being the first productive customer worldwide on that release Migrated the SAP Business Warehouse application to SAP HANA platform Deployed SAP S/4HANA in a virtualized environment Completed the entire project on time and within budget in only 5 months Future plans Deploy SAP Fiori apps to enable customer self-services Replace third-party ERP software with SAP S/4HANA Launch IoT-based predictive maintenance and quality scenarios "The close partnership and focused execution through SAP Value Assurance service packages for SAP S/4HANA helped speed our implementation for a successful go-live. With SAP S/4HANA, employees have more analytical insight into daily tasks, helping better penetrate the market. And we have the foundation to integrate customers and partners into our business processes." Ralf Schnackerz, CIO, WEIG Group Better Decision making and market penetration through real-time access to key data and reports Increased User productivity and satisfaction through an enhanced mobile user experience Launched Platform to integrate customers and business partners into the company s value chain at all levels from the order process to manufacturing 2016 SAP SE or an an SAP affiliate company. All rights All rights reserved. reserved. Studio SAP (16 /12 ) This content is approved by the customer and may not be altered under Public any circumstances. 22

20 SAP Road Maps Have moved to SAP Road Maps SAP Road Maps communicate the solution and product direction so you can optimize business value and the return on your IT investment. Cross Topics -> Cross-Product -> SAP S/4HANA, SAP S/4HANA Cloud & SAP Fiori Also check out individual industry roadmaps 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 24

21 What is NEW with roadmaps? More transparency 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 25

22 SAP S/4HANA Innovation discovery SAP SE or an SAP affiliate company. All rights reserved. Public 29

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24 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 31