S/4 HANA Introduction & Roadmap. Dr. Bjoern Ganzhorn Enterprise Architect - SAP Americas Inc.

S/4 HANA Introduction & Roadmap Dr. Bjoern Ganzhorn Enterprise Architect - SAP Americas Inc.

Agenda SAP S/4 HANA Introduction & Roadmap Why S/4 HANA? Business and IT Challenge What is S/4 HANA? Solution Overview and Roadmap How can Hershey deploy HANA? Deployment Data in Hub, IoT and Hadoop Think aways 2015 SAP SE or an SAP affiliate company. All rights reserved. UNWRAP HAPPINESS WITH SAP 3

Source: Hagleitner SenseManagement Video on YouTube What does HERSHEY s picture look like?

Recommendation for Target Architecture: Move to a Modern, Integrated Platform Today Target State Simplify Business and Application Landscape by modernization and decommissioning Success Factors Fiori Analytics Enable Reporting by real-time data availability hybris Enable Growth Initiative by supporting M&A and Globalization Ariba HANA Platform HCP Enable New Innovation by providing real-time platform Hershey Non-SAP Mature and knowledgeable team able to hold the system together Systems in use have possibly outlived their use in terms of supporting any new business model changes Inherent data latency, inconsistency and blind spots Complex architecture and process creating cost and inefficiencies Single Unified, Harmonized Core Modern User Experience Fact-based decision support - Analytics Drastically simplified enterprise architecture Global SAP Lite Template approach for geographic expansion Accelerate growth through innovation and M&A Hadoop HSY s target architecture to store all data and make it available to users across the enterprise 2015 SAP SE or an SAP affiliate company. All rights reserved. HCP HANA Cloud Platform is an open platform-as-a-service providing unique in-memory database and business application services. UNWRAP HAPPINESS WITH SAP 9

Software Evolution Innovation Mainframe R/2 ~20 years Client Server R/3 ~20 years APPLICATION PLATFORM BUSINESS NETWORK Year 1970 s 1990 s 2010 s 2015 SAP SE or an SAP affiliate company. All rights reserved. UNWRAP HAPPINESS WITH SAP 10

SAP S/4HANA 3 Key Enabler to Run Digital Transformation SAP HANA AS THE UNDERLYING PLATFORM OLAP & OLTP MERGE IN-MEMORY COMPRESSION INCREASE IN SPEED SAP HANA REAL-TIME & SIMPLIFIED SIMPLIFICATION OF APPLICATIONS AND UNDERLYING DATA MODEL NO AGGREGATES & NO INDICES HIGHER FLEXIBILITY & THROUGHPUT DATA FOOTPRINT REDUCTION SAP FIORI SAP FIORI AS THE USER EXPERIENCE (UX) PARADIGM; CROSS-APPLICATION USER EXPERIENCE WEB-BASED, ALL DEVICES ROLE-BASED DECISIVE 2015 SAP SE or an SAP affiliate company. All rights reserved. UNWRAP HAPPINESS WITH SAP 11

SAP S/4HANA Extensibility Cloud and On-Premise SAP Business Suite SAP S/4HANA Cloud edition Classic customer and partner development User Interface Application Database Extensions Modifications Key user extensibility Managed extensibility SAP S/4HANA On-Premise Key user extensibility Managed extensibility Classic extensibility User interface Application Database (SAP HANA) User interface Application Database (SAP HANA) APP UI DB Side-by-side extensibility on SAP HANA Cloud Platform In-App Extensibility Public APIs SAP Customer, Partner 2015 SAP SE or an SAP affiliate company. All rights reserved. UNWRAP HAPPINESS WITH SAP 12

Hardware Evolution MEMORY 1GB X 6,000 MEMORY 6,000GB to 48,000GB CPU 4 x 50 MHz X 1,800 CPU 120 x 3,000 MHz DISC 12,000,000 NS X 60,000 DISC DRAM 200 NS / L3 1.5 NS COST 1 TB RAM $109M 1 TB Disc $9M - X 3,000 COST 1 TB RAM $2K 2015 SAP SE or an SAP affiliate company. All rights reserved. UNWRAP HAPPINESS WITH SAP 13

Re-think Everything with in-memory computing Need to eliminate redundant data copies, materialization and models 14 years after R/3, what would an ERP system look like if we start from scratch? Hasso Plattner Separated Transactions + Analysis + Acceleration processes One in-memory atomic copy of data for Transactions + Analysis ETL ETL Cache VS SAP HANA (DRAM) Transact Analyze Accelerate 3 copies of data in different data models Inherent data latency Poor innovation leading to wastage Eliminate unnecessary complexity and latency Less hardware to manage Accelerate through innovation and simplification 2015 SAP SE or an SAP affiliate company. All rights reserved. UNWRAP HAPPINESS WITH SAP 14

Industry 3.0 > Industry 4.0 Enabling Hershey in the Digital Age Batch Structured And Unstructured Data Replication Columnar Real-time Row IT Aggregates On-the-fly Disk OLAP OLAP/OLTP Together Batch Decisions by gut Data-based Decisions Insight to Action Tedious Responsive BUSINESS Instantaneous Limited search Simulations Limited data Structured data Massively Parallel OLTP All Data In-memory Single processor Zero Latency Analysis Predictive separate from execution Contextual Navigation and Search Intuitive Historical only 2015 SAP SE or an SAP affiliate company. All rights reserved. UNWRAP HAPPINESS WITH SAP 17

S/4 HANA Overview Business Decisions Get insight on any data from anywhere in real time. With SAP HANA, planning, execution, prediction, and simulation can be done on the fly so you can drive the decisions of today and tomorrow User Experience SAP HANA is natively designed with SAP Fiori, the most modern, role-based user experience to give users a personalized, responsive, and simple UX across all tasks and devices Business Processes Simplify your business processes to gain new efficiencies across your organization. Using SAP HANA, you can focus on the most essential tasks in real time and adapt business processes as needed Data Models and System Landscape (IT) Shrink your data footprint and your IT costs with a simplified data model. Say goodbye to indices, aggregates, and data redundancies once and for all Business Models With SAP HANA, the Internet of Things and Big Data are accessible to any business. Connect people, devices, and business networks in real time to create new business models and deliver more value to customers System Deployment (IT) Simplify your deployment by aligning it to business needs. SAP HANA gives the choice to deploy in the cloud, on premise, or hybrid for faster time to value and easy adoption via guided configuration 2015 SAP SE or an SAP affiliate company. All rights reserved. UNWRAP HAPPINESS WITH SAP 18

HANA Adoption Framework by Business Impact Maturity Level 5 4 Business Impact NEW BUSINESS MODELS Business Innovation New customers New markets New/Better PRODUCTS Optimize products Offer new products or services Processes Biz Model Characteristics new new new old New BUSINESS MODELS Personalized Medicine Pay by Use (Compressed Air) Better PRODUCTS Quality Improvement Predictive Maintenance Customer Service 3 New/Better PROCESSES Improve single processes Replace single processes Change end to end processes new Better PROCESSES Expert Finder Simple Financials 2 New/Better DECISIONS Transparency Decision support Decision automation old Better DECISIONS Customer 360 view (incl. external data!) POS Data Access Global Batch Traceability 1 Better SPEED DB Exchange Lift and Shift Better SPEED Planning runs within a batch window Higher fill-rate from multiple runs of product allocation and backorder processing Inventory Visibility 2015 SAP SE or an SAP affiliate company. All rights reserved. UNWRAP HAPPINESS WITH SAP 21

Reference Architecture Hershey H (S/4) BPC Global Template Lite sfin slog HANA Platform Innovation Embedded Engines. Instant. Granular. Complete Flexibility - Virtual Data Model Smart Data Access HANA Platform M&A IoT Hershey Non-SAP 2015 SAP SE or an SAP affiliate company. All rights reserved. UNWRAP HAPPINESS WITH SAP 22

SAP Lite Approach for M&A Differentiating (Go to Market) M&A Enablers Unique / Local Process (Global Template Lite Extensions ) Provide Complementation through pre-integrated SAP SaaS offerings, such as S&OP, Trade Management and Sales/Service, etc. Provide Extensibility through PaaS offering (HANA Cloud Platform) Cloud Global Template Lite Shared Synergies Process Global Strategic and Commodity Processes (Global Template Lite) Accomplished with configuration variations, such as Transaction Variants, Incompletion Logs, Personas/Fiori, Rules, etc. S/4 Managed by GSS Financial Regulatory Data Value-based global template extensions Regulatory and Foundational Data (Global Data Template) Central Finance Data Services / Master Data Governance / Information Steward Global Reporting HANA Start Time 2 3 2015 SAP SE or an SAP affiliate company. All rights reserved. UNWRAP HAPPINESS WITH SAP 23

S/4HANA Integration Strategy SAP delivered Customer Cloud HCI SAP S/4HANA Cloud Edition HCI Non SAP Cloud SAP delivered HCI, PI, SLT On-Premise Business Suite SAP delivered HCI, PI, SLT and Others SAP S/4HANA On-Premise Customer HCI, PI, SLT and Others Non SAP Applications 2015 SAP SE or an SAP affiliate company. All rights reserved. UNWRAP HAPPINESS WITH SAP 24

Recommendation for Target Architecture: Move to a Modern, Integrated Platform Today Target State Ariba Success Factors Success Factors Fiori Analytics hybris Ariba HANA Platform HCP Non-SAP Systems (some Non-SAP Systems will be consolidated into SAP, and others will be upgraded/replaced/updated in parallel outside of the scope of this effort) 3 1 Hadoop HSY s target architecture to store all data and make it available to users across the enterprise 2015 SAP SE or an SAP affiliate company. All rights reserved. UNWRAP HAPPINESS WITH SAP 31

What are Hershey s options? S/4HANA Journey LEAPFROG * Upgrade and Migration can be two steps Existing Suite on Any DB Customer Netweaver/BW (SAP HANA or Any DB) SAP ERP (Any DB/HW) HANA Ready Platform ERP on HANA Enabled Platform One Step Process Upgrade & Migrate SAP ERP 6 (EhP 7) (Any DB/HW) Netweaver/BW7.4 ERP 6 (EhP 7) SAP HANA S/4HANA with Simple Finance Netweaver 7.4 Simple Finance Add-on ERP 6 (EhP7) SAP HANA Continued S4HANA Development Readiness Considerations S4HANA Roadmap ECC Technical Upgrade Netweaver Upgrade Platform Technical Upgrade Netweaver/BW Upgrade ERP 6 EhP 7 Upgrade Platform Technical Migration SAP ERP 6 EhP 7 Migration to SAP HANA SAP BW Migration to SAP HANA S4HANA SAP Smart Business SAP Smart Business Foundation Component SAP Fiori Process Optimization Business Process Transformation / Change Management 2015 SAP SE or an SAP affiliate company. All rights reserved. UNWRAP HAPPINESS WITH SAP 32

Activation Roadmap (DRAFT) Business Architecture Projection of Timeline and key outcomes Data Simplification Process Simplification System Simplification (SAP/Non-SAP) Project Start 1a Analytics (FI) 2a Process (FI) Central Finance for ARP/PRD and M&A Enable Operational Analytics for ARP/PRD and M&A 1b Analytics (..) Simplify ARP* (New/Better Processes, Advanced Analytics and Insight capabilities, Modern UX) Simplify PRD* (New/Better Processes, Advanced Analytics and Insight capabilities, Modern UX) Dramatically Simplified 3a Consolidation IT Landscape 2b Process (..) 3b Consolidation (..) Q4 2015 2016 Jun 2016 Oct 2016 2017 Mar 2017 Sep Q4 2017 2017 2018 * Non-SAP could be folded in at either ARP or PRD cutovers 2015 SAP SE or an SAP affiliate company. All rights reserved. UNWRAP HAPPINESS WITH SAP 33

Agenda SAP S/4 HANA Introduction & Roadmap Why S/4 HANA? Business and IT Challenge What is S/4 HANA? Solution Overview and Roadmap How can Hershey deploy HANA? Deployment Data in Hub, IoT and Hadoop 2015 SAP SE or an SAP affiliate company. All rights reserved. UNWRAP HAPPINESS WITH SAP 36

Transition Roadmap (DiH Approach) Process / Data Modernize Business: Process RDBMS RDBMS RDBMS PRD 1 ARP 2 other Configuration Custom Dev Configuration Custom Dev Configuration Custom Dev Development Harmonization Dev Hershey HANA + Configuration Custom Dev Optimized Business Processes Operational Business Intelligence New User Interface Modernize IT: Simplified AppDev Simplified App/Data Footprint Process Go-Live Hershey Analytics Consolidation HANA Data Prod Prod Prod Prod RDBMS RDBMS RDBMS RDBMS Near Real-time Data Load HANA Data-In Hub Data Analytics enablement Simplify Testing and Decoupling of major data activities (extraction/transformation/cleansing) from rollout phases Minimizes resource impacts on source system Harmonization and Cleansing of Data 2015 SAP SE or an SAP affiliate company. All rights reserved. UNWRAP HAPPINESS WITH SAP 37

Data In Hub Application Architecture Portals Analytics Operations Other Systems not sunset Characteristics 1. SAP LT / SLT enables real-time data provisioning into / within / out of the Data-In Hub Legacy OLTP Data Consumption 2. Dependent on scenario the staging can be added or deduced Legacy OLAP Other Systems not sunset SAP Transactional Systems ( ERP-PRD, ERP-ARP, ) real-time data feed Staging for technical / content consolidation Data Operations HANA Data-In-Hub Staging for data cleansing & Staging for System of Innovation 3. Data are ready for consumers 4. Historic and current data are at hand 5. Decide on data life cycle after consistent load to Data-In Hub: 1. Keep data in staging area(s) 2. Archive 3. Move to SAP ILM 4. Store in e.g. SAP IQ 6. Data-In Hub can be directly accessed by SDA / Smart Data Access 7. Data-In Hub can be run as Schema on EDW HANA high speed data access 2015 SAP SE or an SAP affiliate company. All rights reserved. UNWRAP HAPPINESS WITH SAP 38

SAP Strategy for IoT Industry solutions Application enablement platform Adaptive Logistics Digital Object Memory Moving Assets Smart Factory Augmented Reality Energy Management Remote Service Management Predictive Quality Predictive Maintenance Output based monetization Device management platform R&D Logistics Manufacturing Sales Service Smart Data Connectivity Intelligent Assets 2015 2015 SAP SAP SE or SE an or SAP an affiliate SAP affiliate company. company. All rights All reserved. rights reserved. UNWRAP HAPPINESS WITH SAP 39

SAP Strategy for IoT Industry solutions Application enablement platform Predictive Maintenance Adaptive Logistics Smart Product Moving Assets Digital Object Memory Smart Factory Output based monetization Augmented Reality Energy Management Adaptive Logistics Remote Service Management Predictive Quality Data and process integration with SAP Business Suite, Predictive Maintenance cloud solutions from SAP, and non-sap systems Output based monetization Device management platform SAP HANA Cloud Platform Internet of Things Services R&D Logistics Manufacturing Sales Service Smart Data Connectivity Telco 3 rd party device cloud Intelligent Assets Devices 2015 2015 SAP SAP SE or SE an or SAP an affiliate SAP affiliate company. company. All rights All reserved. rights reserved. UNWRAP HAPPINESS WITH SAP 40

SAP HANA Cloud Platform a central element as your In-Memory Platform as a Service Platform as a Service (SAP) End Customer (On site) Device SAP Connector Machine Integration HANA Cloud IoT Services IoT Applications (SAP, Partner and Custom apps) HANA Cloud Integration Process Integration Business owner (SAP Customer) Business Suite Systems (ERP, CRM, etc.) HANA Cloud Platform Data Processing In-Memory Engines Extended Storage Storage Hadoop Streaming HANA Big Data Platform 2015 2015 SAP SAP SE or SE an or SAP an affiliate SAP affiliate company. company. All rights All reserved. rights reserved. UNWRAP HAPPINESS WITH SAP 41

Think aways: Think Best of all worlds Think S/4 HANA Think 10x