SBN - PLM Webmeeting SAP S/4HANA for advanced variant configuration Overview and Roadmap

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SBN - PLM Webmeeting SAP S/4HANA for advanced variant configuration Overview and Roadmap Stefan Kienzle, Research & Development SAP SE Walldorf, 17 th November 2017

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. 2

About SAP Road Maps SAP road maps cover innovations that focus on business solutions and processes. They span products that are relevant for customer lines of business in their industries and explain how our innovations can add value to your business. In SAP road maps, you can learn about our innovations along three different timelines: 1. Recent innovations for our solutions have been launched in the past weeks or months and can already be purchased. 2. Planned innovations for our solutions are expected to be launched in the short term or midterm. 3. Future direction provides a long-term perspective on high-level development plans on innovations for our solutions inspired by your requirements. 3

Agenda 1. Overview 2. Advanced Variant Configuration - Current Capabilities 1708/1709 3. Planned Innovations 4. Future Direction 5. Wrap-Up & Closing 4

Overview

Key Trends and Requirements Customer centricity Customer-driven change towards products that fit exact needs at competitive prices Individualized products are the main differentiator for winning in the global market Efficient configuration of sales orders & more efficient modeling Product complexity management focus on data quality, consistency, and agility Business transparency for configurable products Serving the Segment of One From looking at mass customers to focusing on the single customer s needs Produce for a lot size of one with high asset utilization and optimal set-up times Coordination and collaboration between sales and engineering Simplified, Efficient organization and process support for engineer-to-order use cases 6

Requirements SAP Approach Efficient configuration of sales orders & more efficient modeling Product complexity management focus on data quality, consistency, and agility Business transparency for configurable products Coordination and collaboration between sales and engineering Simplified, Efficient organization and process support for engineer-to-order use cases Focus in this presentation 7

SAP S/4HANA Advanced Variant Configuration SAP S/4HANA for advanced variant configuration provides an efficient set of enhanced capabilities to define, develop, sell, manufacture, deliver, and maintain individualized products Engineering Sales Manufacturing Service Asset Management Key Advantages / Values: UX Experience Simulation Environment Embedded Analytics Efficient configuration of sales orders & more efficient modeling Product complexity management focus on data quality and consistency Sales Configurator New Configuration Engine Classification Business transparency for configurable products Coordination and collaboration between sales and engineering Simplified, Efficient organization and process support for engineer-to-order use cases 8

Advanced Variant Configuration Current Capabilities 1708/1709

Fork Lift Manufacturer Analyze, Adapt, Validate, and Sell with Advanced Variant Configuration 11

Analyze, Adapt, Validate, and Sell with Advanced Variant Configuration Trigger: A new energy consumption law S Analyze Business Impact Product Manager Adapt product configuration model Validate product configuration model Product Modeler Configure customer order E Internal Sales Representative 12

Planned Innovations 13

Advanced Variant Configuration New advanced Configurator for Sales Order Entry Make-to-Stock / Make-to-Order Scenario Sales Sales Reps. S Entry Sales order with Product Configuration Order handover SD -> PP switch active MRP- Controller Manufacturing Production Planning Material Requirements Planning Manufacturing Execution Logistic Worker Distribution Inventory Management (Finished Goods) Delivery E 14

Sales Configurator Leveraging SAP Fiori Increase sales force efficiency through higher tool support within order configuration to allow the sales force to focus on selling Key Capabilities: Highly-efficient valuation supported Embedded into Sales Order Entry / Change Side panel show further details for selected characteristic Undo / Redo functionality Comprehensive filtering Responsive UX 15

Advanced Variant Configuration New advanced Simulation Environment for VC-Models Product Manager VC Modeler Product Management S VC Modelling Creation of High- Level VC-Model (Classes/Characteristics, Constraints, Procedures) Creation of Low- Level Object Dependencies Test and Simulation of VC-Model E High-Level object dependencies must be flagged for processing mode: classic (LO-VC) or advanced variant configuration BOM Engineer BOM Engineering Worklist Manufacturing BOM BOM Low-Level object dependencies work with LO-VC as well with advanced variant configuration models 16

Simulation Environment Reduce time to market for new products through highly-efficient simulation of new product variants and options Key Capabilities: SAP Fiori role-based simulation environment Highly-efficient process-oriented screen arrangement Parallel evaluation, results, trace Integrated BOM result and technical details are shown on one screen. On demand detail screen can be hidden and unhidden. Trace management 17

New Configuration Engine Increase quality and consistency for order configuration to accelerate ordering process and improve customer satisfaction Key Capabilities: New state of the art algorithms designed together with Fraunhofer Institute Kaiserslautern, Germany Engine architecture design prepared for future syntax enhancements New engine performance-optimized for SAP HANA More precise restrictions of values during configuration valuation Supporting negative variant tables 18

Embedded Analytics Increase business insights through comprehensive embedded analytics functionality for business scenarios segmented down to characteristic level Key Capabilities: Real-time embedded analytics supports analyzing of configuration/classification data combined with configured business objects, e.g., sales order Predefined analytical sales scenario (on premise edition only) Flexible report allows users to select which characteristics to include in the analysis Easily consume query CDS* views with business intelligence tools like Analytics Cloud and Lumira *) S/4HANA Core Data Services data views are a projection to the SAP HANA database tables 19

Classification Increase operational efficiency through classification of business objects Key Capabilities: SAP Fiori UI for classification Improved efficiency and usability Streamlined with configuration UI with similar functionality like undo/redo and filtering Embedded into Product Master (Products, Articles and Media Hierarchy), Batch Overview and Customer-Material Info Record 20

Advanced Variant Configuration Planned Innovations

SAP S/4HANA for advanced variant configuration Planned Innovations Highlights Q3/2017 Planned Q4/2017 Planned Q1/2018 Planned Q2/2018 SAP S/4HANA CLOUD 1708 Variant Configuration New integrated advanced variant configurator supporting single-level variant configuration models Support for make-to-stock scenarios using material variants and make-to-order scenarios using configurable materials Reusable SAP Fiori configuration user experience (UX) integrated into sales order and material master providing improved user guidance through more precise value restrictions, filtering, and undo and redo functionality State-of-the-art configuration engine leveraging SAP HANA capabilities New simulation environment for bills of materials (BOMs) using SAP Fiori UX Syntax enhancement: negative variant tables Integration of VC & classification data into embedded analytics Classification Backend optimization for CDS-based Odata services Support of Product Master, Batch Mgmt and Customer Material Info Record with SAP Fiori user experience SAP S/4HANA CLOUD 1711 Variant Configuration Overview pages for VC modeler Enabling of fast data entry in Sales Order for advanced variant configuration Support of integration scenarios (IDOCs) Improved user experience (e.g. tracing) Classification OData services Support of integration scenarios (IDOCs) SAP S/4HANA CLOUD 1802 Variant Configuration Requirements-driven product modelling Integrate new configurator along key processes: customer quotation Improved user experience (e.g. displaying alternative values) Extended Output Management/Printing Migration Classification Further OData Services Extended search capabilities SAP S/4HANA CLOUD 1805 Variant Configuration Integration into SAP Hybris Revenue Cloud (CPQ) and SAP Hybris Commerce Cloud Integrate new configurator along key processes: production order Leverage Machine Learning algorithms in configuration to enhance user experience Variant type Matching Grouping Classification Machine-Learning based auto-classification Disclaimer: This is the current state of planning and may be changed by SAP at any time without notice. 22

Advanced Variant Configuration Future Directions

SAP S/4HANA for advanced variant configuration Enterprise Edition Future Innovations Highlights 1709 Recent innovations* 2018 Planned innovations* 2019 Product direction* 2020 Product vision* Advanced analytics for configuration data (onpremise) Classification reuse user interface component OP New advanced variant configuration leveraging SAP HANA capabilities (on premise) Variant Configuration Support of multi-level scenarios Integration into SAP Hybris Revenue Cloud (CPQ) and SAP Hybris Commerce Cloud Integration of new configuration along key processes Integration of routing with simulation environment Support by machine-learning algorithms Enabling of variant functions Improved trace functionality Further Analytical scenarios Grouping of characteristics in VC & Classification Classification Integration of new configuration into classification Integration of classification SAP Fiori UI into further objects Extended characteristic types (e.g. longtext, files) Machine-Learning based auto-classification Extended search capabilities Variant Configuration Separate configuration for sales and manufacturing through loose coupling Simplified digital modeling in engineer to order through reuse of configurable models Support for closed-loop engineering by enhancing variant configuration to engineering and order change management Enhanced product modeling environment for Hardware, Electrics, Electronics, Software and Services Syntax enhancements New syntax editor for bill-of-material (BOM) maintenance (with SAP Fiori UX) Classification Non-classifying characteristics Variant Configuration Integrated interactive 3D visualization for configurable products in Engineering, Sales and Production processes Test environment supporting systematically tests and analysis of variant configuration models Enhanced Engineer To Order Process supported by machine-learning Integration into Asset Intelligence Network and Digital Twin for Business Classification Simplified class types Extended search and where-used capabilities for classification and variant configuration Enhanced mass-change capabilities for classification and variant configuration *This is the currentstate of planning and may be changed by SAP at any time without notice. This presentation 2017 SAP and SE or SAP s an SAP strategy affiliate andcompany. possibleall future rights developments reserved. ǀ are subject to change and may be changed by SAP at any time for any reason without notice. 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 24

Wrap-Up & Closing

Key takeaways SAP S/4HANA for advanced variant configuration Leverages the latest technologies to accelerate configurable product modeling and change process to be ahead for your customers Provides an efficient set of enhanced capabilities to define, develop, supply, sell and manufacture individualized products Best supports your entire end-to-end business process for individualized products in an integrated fashion 26

Thank you. Contact information: Stefan Kienzle Product Manager Advanced Variant Configuration Products & Innovation S/4HANA Idea LoB Research & Development SAP SE Dietmar-Hopp-Allee 16 69190 Walldorf, Germany stefan.kienzle@sap.com

SAP Videos SAP S/4HANA for advanced variant configuration Teaser advanced VC: Embedded Analytics with VC: Embedded Analytics VC for Metals: Featuring Sven Denecken from S/4HANA Cloud: https://www.youtube.com/watch?v=wvodpkulfro https://www.youtube.com/watch?v=amcnpnuwm1w https://youtu.be/4dh0n3gxb6g https://www.youtube.com/watch?v=2blmt5bc-g0 29

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