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SAP S/4HANA 1610Innovations – Key Use-Cases
October 2016 Customer
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Disclaimers
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.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Industry to core – discrete
industries and mill products
(DIMP)
SAP S/4HANA 1610Key innovations* to faster adoption
Color legend: Existing and enhanced innovations - New innovations
advanced available to
promise (aATP)
Embedded extended
warehouse management
Effective order
management and billing
Efficient
procurement
Real-time inventory management
and material valuation
Integrated quality
management
Entire SAP S/4HANA Finance
scope included
Embedded software in
product development
Consistent SAP Fiori
user experience (UX) for
SAP S/4HANA
Plan to produce in ONE
system (production planning
and detailed scheduling)
Optimized portfolio and
project management
Accelerated material
requirements planning
Industry to core –
retail
Industry to core –
oil and gas
* Key innovations do not reflect licensing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Accelerated MRPProduction and Procurement Planning
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
SAP S/4HANA 1610Key Innovations mapped to the SAP S/4HANA value levers
advanced available to promiseProduct Strategy Allocation
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
Real Time Inventory ManagementPhysical Inventory Count
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
Integrated Quality ManagementEfficient Supply Chain
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
Integrated Extended Warehouse Mgmt.Warehouse Logistics Processes
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
Embedded Software in R&DLifecycle of Embedded Control System
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
Consistent SAP Fiori UXHarmonized User Experience
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
Effective Order Management & BillingStreamline Order Processing
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
Optimized Portfolio & Project Mgmt. Management of Strategic Initiatives
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
SAP S/4HANA Finance in CoreIntegrate Financial Operations for Compliance
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
Industry to Core (DIMP, Oil, Retail)Extend Core Functionalities
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
Efficient Procurement
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
Shopping Experience
LegendAutomation: Robotic process automation of existing business processes
System of Intelligence: Self-learning system of intelligence based on data
Agility (Integration / HCP): Service consumption
Business Network: End-to-end collaboration (supplier and purchasing communities, IoT devices and business processes)
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7CustomerThis is the current state of planning and may be changed by SAP at any time without notice
SAP S/4HANA 1610Key Innovations mapped to the SAP S/4HANA value levers
Consistent SAP Fiori UXHarmonized User Experience
End 2 End “Insight to action”
based on
Harmonized UX across the
1610 Release
Central Landing Pages,
Overview Pages, Co-Pilot
and Embedded Analytics
Industry to Core (DIMP, Oil, Retail)Extend Core Functionalities
Long Material Number
Harmonization of “article”
and “material”
Retail in the core
IS Oil enabled
Real Time Inventory ManagementPhysical Inventory Count
New simplified Data Model -
MATDOC
Real-time processing of
inventory postings
Posting of finest granularity
like handling unit, lot size 1
Accelerated MRPProduction and Procurement Planning
Real time data from all areas
of material management
Tasks focused on exceptions
Real Time Simulation
Decision support
Efficient ProcurementShopping Experience
Procurement Overview Page
Data integrity with SAP Ariba
solutions
Activity and task
management functions
Integrated Extended Warehouse Mgmt.Warehouse Logistics Processes
Eliminate the need to
replicate data
New deployment option
Process and technical
simplifications compared to
SAP EWM 9.4
advanced available to promiseProduct Strategy Allocation
Back-Order Processing: New
winner, gainer loser concept
Product Allocation: Reduction
number of customizing and
data maintenance steps
Release for Delivery: New SAP
Fiori app
Optimized Portfolio & Project Mgmt. Management of Strategic Initiatives
Overview dashboard for
project manager
Simplified and SAP HANA–
optimized data model
Simplified authorization
concept
Integrated Quality ManagementEfficient Supply Chain
Intuitive UIs for recording the
results of different types of
inspection characteristics
New roles with SAP Fiori UX
CDS views for quality
inspections and master data
Embedded Software in R&DLifecycle of Embedded Control System
Maintain compatibility
information between
software and other
components of a product
Check product structure for
compatibility of embedded
software
Effective Order Management & BillingStreamline Order Processing
Sales order fulfillment
monitor
Simplified billing processes
Insight to action
SAP S/4HANA Finance in CoreIntegrate Financial Operations for Compliance
Universal Journal
Central Finance
New cash management
Parallel valuation: transfer
pricing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8CustomerThis is the current state of planning and may be changed by SAP at any time without notice
SAP S/4HANABusiness Innovations Enabler Framework
Reimagine business models – Simplicity to connect to people, devices, and business networks in real time to deliver new experiences and value. Internet of Things and Big Data become accessible to any business – no more complex business collaboration and interactions.
Reimagine business decisions – Simplicity to get any insight on any data from anywhere in real time with planning, execution, prediction, and simulation now all done on the fly to drive faster business impact –no more complex data consolidation through additional sources or software.
Reimagine business processes – Simplicity to focus on essential tasks in real time and change business processes as needed to gain new efficiencies – no more long-running batches, no longer confined by predefined structures.
Reimagine user experience – Simplicity to get the job done across lines of business with a personalized, responsive, and simple user experience available on any device – no more complex and different user interfaces.
Reimagine IT landscape – Simplicity to reduce data footprint and work with larger data sets in one system to save costs (hardware and operational) and time – the planned option to reintegrate the SAP ERP, SAP Customer Relationship Management, SAP Supplier Relationship Management, SAP Supply Chain Management, and SAP Product Lifecycle Management applications with no more discrepancies between systems.
https://support.sap.com/release-upgrade-maintenance/release-
strategy/portfolio/product-strategy/applications.html
Functional Capabilities
» Role-based, new user design
» Simulation & decision support
» Built-in analytics
» Save draft & smart templates
» One UI design for any device
» Enterprise Search
» CDS (Core Data Services) views
» Unified reuse components & frameworks
» Semantically compatible Data Model
» Seamless integration & connectivity
Application Services
» In-memory, Columnar store Database
» OLAP & OLTP together
» Insert-Only, no DB locking
» Code pushdown
» Remove aggregates & indices
Database
User Experiences
Technical Capabilities
» Business Process Innovations
» High Throughput & Performance
» System consolidation & optimization
» Reporting & Analytics
» Minimal memory footprint
» Responsive consumer grade User Interface
advancedAvailability toPromise
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10CustomerThis is the current state of planning and may be changed by SAP at any time without notice
SAP S/4HANA 1610advanced Availability to Promise *
» Fulfilling an order on time and in the desired quantity using different kindS of checks for different business scenarios
» Performing automatic back-order processing
» Reducing inventory carrying cost
» Difficult to fulfill customer orders on time with the proper quantity
» Inability to promise accurate and reliable order dates
» Inefficient strategies to fulfill orders from the entire network or to substitute products automatically
» Inefficient strategies to sell scarce products in a fair manner
» Inefficient ways to manage order backlogs
» SAP HANA–enabled mass product availability check for sales, planned, and production orders.
» ATP check for all items of an order at once
» Significant performance improvements for releasing large production orders
» Data and process innovations in back-order processing and sales product allocation
» New concept of confirmation strategy
» Product allocation in SAP S/4HANA has a completely new design and implementation based on neither SAP ECC nor SAP Advanced Planning and Optimization application
advanced
Availability to
Promise
Accelerated
Material
Requirements
Planning
Real time
Inventory
Management &
Material
Valuation
Integrated
Quality
Management
Effective Order
Management &
Billing
Efficient
Procurement
Integrated
Extended
Warehouse
Management
Industry to
Core (DIMP, Oil,
Retail)
Entire S/4HANA
Finance
scope included
in the core
Embedded
Software in
Product
Development
Optimized
Portfolio and
Project
Management
Consistent
Fiori UX for
SAP S/4HANA
advanced
Availability to
Promise
Throughout SAP S/4HANA, you can provide customers with instant confirmation or clear alternatives and make the best use of the inventory and production capacity available at each point in time across your supply network.
* does not reflect licensing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11CustomerThis is the current state of planning and may be changed by SAP at any time without notice
New business prioritization strategy:
Simple classification of concurrent sales orders according their business impact
High-volume back order processing
ATP confirmation based on business priority instead of order creation time
Reduction of the number of missed business opportunities and the enhancement of revenue and profitability
Traditional
Strategy
New
Strategy
Planning performance
Business process viewBack-Order Processing (BOP): Confirmation Strategy
First come – First served process:
No prioritization of requirements during sales document creation:First come – First serve
High priority orders might not get confirmed due to reservations for less important sales order requirements
Backorder Processing necessary to adjust confirmations according to the priority of the sales orders
Online order entry – Order creation Reinvented confirmation strategy with SAP S/4HANA
Sales Orders
WIN GAIN REDISTRIBUTE FILL
Inward movement
Outward movement
Requeste
d
Deliv
ery
Date
Estim
ate
d T
ime
of
Arr
ival
Rush Order
Time
Reservation
Delivery Delay
Reservation
Sales Orders
LOSE
Rush Order
Sales Orders
Stock Transfer
Requisitions
All Sales orders from “A”
Customers
which are due today and
tomorrow
All Standard Sales
Orders of this Week
“Customer X” Orders
of Today
Rush
Orders
Orders on
Credit Block
List of Material / Plants
Requested
Delivery Date Confirmed
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Business InnovationProduct Allocation
» Product allocation with a completely new design and implementation based on neither ECC nor APO
» Time dependent assignment of product allocation data to product and product location combination. No need to change product master data, if product allocation data is to be assigned or unassigned to product or product location combination
» Hierarchical selection of product allocation -attributes according to business object hierarchy (much less technical)
» Value help for product allocation attributes Up and download via Excel natively supported for maintaining product allocation quantities
Functional Capabilities
User Experiences
Technical Capabilities
Simplified Set-Up: 3 easy to use Apps
» Reduced number of customizing and datamaintenance steps needed to setup product allocationfunctionality
» Configuration massively simplified for the benefit of the end-user and LOB. Compile 36 Transactions in 3 easy to use Apps
» No generation of coding or database-tables during product allocation setup (draft concept fully supported)
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Business InnovationRelease for Delivery (SAP Fiori app)
Allows any user to easily gate keep which sales order requirements should be delivered. Especially designed for handling material shortage situations this highly interactive SAP Fiori aooenables any user to efficiently distribute the available stock to the most important sales order requirements.
» Visualization of the business impact of a material shortage
situation allows the user to prioritize his work and
concentrate on the real issues.
» Mass change capabilities enable efficient processing of
multiple sales order requirements.
» Automated selection of worklist according to a user specific
area of responsibility avoids dependencies and double
work.
» Delivery creation can be triggered directly out of the app.
Minimizes the impact of material shortages by supporting the user to efficiently work and keep his deadlines !
Overview
Screen
Identifying the
materials for which
the shortage is
causing the highest
business impact
Detailed Screen
Easily distribute the
available stocks to
the most important
sales orders
Real time InventoryManagement andMaterial Valuation
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 16CustomerThis is the current state of planning and may be changed by SAP at any time without notice
SAP S/4HANA 1610Real time Inventory Management & Material Valuation *
» Low throughput, which prevents real-time inventory
» Missing embedded and real-time analytics
» Process and data redundancies, which increases effort
» Multiple aggregates and locking bottlenecks
» Limited insights into actual costs
» Multiple material valuation tables
» Real-time processing of inventory postings and visibility of inventory values
» Posting of finest granularity like handling unit, lot size 1, sensor data
» Decreased stock levels (e.g. reduce buffers) due to increased transparency
» Easy to consume data model supporting flexible analytics
» Manage the changing demand for smaller lot sizes passing through the logistic operations
advanced
Availability to
Promise
Accelerated
Material
Requirements
Planning
Real time
Inventory
Management &
Material
Valuation
Integrated
Quality
Management
Effective Order
Management &
Billing
Efficient
Procurement
Integrated
Extended
Warehouse
Management
Industry to
Core (DIMP, Oil,
Retail)
Entire S/4HANA
Finance
scope included
in the core
Embedded
Software in
Product
Development
Optimized
Portfolio and
Project
Management
Consistent
Fiori UX for
SAP S/4HANA
Real time
Inventory
Management &
Material
Valuation
Throughout SAP S/4HANA, the inventory manager and warehouse clerk can analyze issues quickly, realize the potential threats in real time, and resolve complications rapidly in order to archive efficient management of inventory in today’s digital economy. Turnover analysis and material on stock analysis builds the basis of crucial actions such as posting goods movements, analyzing plant inventory, performing materials reposts, and analysis of these postings.
* does not reflect licensing
» Improved on-time delivery
» Increased inventory turnover
» Increased inventory accuracy
» Decreased safety net (for example, reduce buffers) due to increased transparency
» Attracting end user by real-time accuracy
» Managing the changing demand for smaller lot sizes passing through the logistic operations
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 17CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Business process viewHigh-volume Inventory Backflush
With SAP S/4HANA:
Real-time inventory information, including early error detection.
Capturing the lowest level of granularity in inventory stock keeping ,
including where-used information per unit (lot size 1).
Drastic decrease of stock levels (safety stock).
With traditional system:
Throughput limitations cause queuing of data entry.
Limited inventory visibility increases error rate and
supply shortages (e.g., sub-daily deviations).
Best practice: Increase safety stock.
Order 1
Order 2
Order 3
BOM 1
BOM 2
BOM 3
Run
inventory
updates at
night
Real-time
data entry
Business process
Production orders are based on BOMs (Bill of
Material).
Production confirmations capture progress w.r.t.
components issued and activities provided.
Backflush automates confirmation postings
in high-volume scenarios.
Safety stock
Time
Quantity
Reorder
point
We
ekly
Reple
nis
hm
ent
Buffers
Daily collective
goods issues
Just-in-time
Safety stock
Time
Quantity Reorder
point
Sub-daily
replenishment Continuous
goods issue postings
Traditional With SAP S/4HANA
Process excellence
Reinvented confirmation strategy with SAP S/4HANATraditional system
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 18CustomerThis is the current state of planning and may be changed by SAP at any time without notice
SAP S/4HANAThe Need for a new Inventory Data Model
» Build in SAP HANA Database and the new data model uses the advantage of in-memory columnar storage
» Separation of MKPF and MSEG information in different tables becomes obsolete.
» Single table (MATDOC) with almost all required attributes and views represents the data for all business perspective
» Elimination and reorganization of the IMG table structure
» Existing fields MBLNR (Document No) and MJAHR(Fiscal Year) of table MKPF are not key fields any more
Content of the aggregate tables calculated from
» the inventory data in MKPF (material document
header table) and MSEG (material document
segment table)
» the IMG (Implementation Guide) tables e.g. Stock type
Two aggregate tables are used as logical locking arguments to block a parallel creation of material document creation
» One lock for quantity posting (for goods issue)
» Second lock for value posting (materials with moving average price)
SAP ECC6 SAP S/4HANA
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 19CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Business InnovationInventory Management & Material Valuation
Technical Innovation
Simplified Data Model: MATDOC (material
document) = MKPF (material document header
table) + MSEG (material document segment
table) + add; columns for fast calculations
No aggregates: On-the-fly aggregation of
inventories
Insert only on database level: No more
database locks
Insert only on application level: Elimination of
standard price (SPREIS) locking (taking
rounding differences into account)
One valuation method: Material ledger instead
of two (material management – inventory
management and material ledger)
Use Cases enabled
Parallel
processing
of inventory
postings
High volume Backflush
(Parallel Production combined
postings)
Ice Truck Scenario
(Combined postings from
offline devices)
Internet of Things
Scenarios (real-time goods
movements posting)
Segment of one (Smaller lot
sizes passing through logistic
operations)
Business Processes
improved
Valid Inventory Management(inventory turnover, inventory costs)
Accurate Material
Requirement Planning
Profitable Procurement
processes
Exact Sales Order
Fulfillment and Delivery
Valuable Production
Execution
Easier implementation of new
processes (like Just-In-Time,
Kanban)
…addressing the digital business as digital core
Accurate
inventory
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 20CustomerThis is the current state of planning and may be changed by SAP at any time without notice© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business InnovationSimplification Example
SIMPLIFIED DATA MODEL
» Only main tables remaining, no redundancies
» Clear separation of master data from transactional data
» Reduction of memory footprint
THROUGHPUT INCREASE
» INSERT only on database level (MM-IM),
no locks for standard price valuation
Busin
ess S
uite
MATDOC ACDOCAMaterial
PricesMaterial
MBEW
OBEW
QBEW
OBEW
MBEWH
OBEWH
QBEWH
OBEWH MLHD
MLPP
MLIT
MLCR
Document
MLPPF MLCRF
CKMLPP CKMLCR
Totals
CKMI1
Index
FAGLFLEXA
GLFUNCA
BKPF
BSEG
COBK
COEPANEK
ANEP
FAGLFLEXT
GLFUNCT
COSP
COSS
BSIMBSIDBSIK
BSAK
BSET
BSAD
BSIS
BSAS
MARD
MARC
MSTQH
MSTEH
MSTBH
MSSQH
MSSAH
MSPRH
MSLBH
MSKUH
MSKAH
MKOLH
MCHBH
MARDH
MARCH
MSTQ
MSTE
MSTB
MSSQ
MSSA
MSPR
MSLB
MSKU
MSKA
MKOL
MCHB
MKPF
MSEG
Totals tables
Document
Totals
Totals
Indices
Documents
BKPF
PRINCIPLE OF ONE
» Only one valuation method (Material Ledger)
instead of 2 (IM + ML)
» Flexible rebate management instead of
cumbersome and expensive redundancies
Inventory Mgmt.(Quantities)
Inventory Mgmt.(Valuation via „MBEW)
Material Ledger(multi GAAP, multi currency)
Finance *
Master Data Inventory Mgmt(Quantities)
Material Ledger(multi GAAP, multi currency)
Finance *
VBAK LIKP VBRK
LIPSVBAP VBRP VBFA
VBUK
VBUP
VAPMAVAKPA
VLPMA
VLKPAVRPMA
VBOX
S066
S067EIKP
EIPO
NAST
Sales and Distribution
VRKPA
Primary
Document tables
Index
tables
Sales and Distribution
Status tablesLIS
tables
Rebate index Output mgmt
Export/import
tables
VBAK LIKB VBRK
LIPSVBAP VBRP VBFA
History tables
BSEG BSET
* Actual Data only
Not displayed in lower part: Profit Center Accounting,
Cost based CO-PA, Reconciliation Ledger
GLPCT
GLPCA
CE4*
COBK
COFIS
COFIT
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 21CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Business InnovationMaterial Document: Data Model / Columns
MATDOC comprises 289 columns
» 32 columns from MKPF (Material Document header table)
» 204 columns from MSEG (Material Document item table)
» 53 additional columns for fast Calculations / Analytics
– Warehouse stock grouping fields
e.g. stock categories (special stock, unrestricted, …)
– Additional units and key figures
e.g. stock quantities stored with sign for fast on-the-fly aggregation
– Two sets of stock identifying fields (source and target)
Transfer postings
– Periods and time information
e.g. year-month combination for comparison of stock time series
– Data footprint: 25% .. 38% of total table size
IntegratedQuality Management
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 24CustomerThis is the current state of planning and may be changed by SAP at any time without notice
SAP S/4HANA 1610Integrated Quality Management *
» End-to-end supply chain visibility regarding product quality and identification of non-conforming products
» Changing a local or departmental QM focus to a company-wide (and later to a supply chain) focus
» Preventing non-conformances within the entire stages of design to production to delivery
» Promptly informing customers of non-conforming products
» Integrated, simplified quality management
» On-premise (large enterprises) and cloud-based options (small businesses and midsize companies, small plants)
advanced
Availability to
Promise
Accelerated
Material
Requirements
Planning
Real time
Inventory
Management &
Material
Valuation
Integrated
Quality
Management
Effective Order
Management &
Billing
Efficient
Procurement
Integrated
Extended
Warehouse
Management
Industry to
Core (DIMP, Oil,
Retail)
Entire S/4HANA
Finance
scope included
in the core
Embedded
Software in
Product
Development
Optimized
Portfolio and
Project
Management
Consistent
Fiori UX for
SAP S/4HANA
Integrated
Quality
Management
Throughout SAP S/4HANA, quality management data and processes have been streamlined and integrated to enable end-to-end, closed loop quality visibility and improvements across the entire enterprise and built-in quality and continuous improvement from product design through after market service.
* does not reflect licensing
» Real-time monitoring and exception management for quality deviations
» Backward and forward traceability
» Reduced inspection costs (sampling, skit lot)
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 25CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Traditional system Reinvented Business Processes with SAP S/4HANA
Business process viewIntegrated Quality Management – End to End Quality Management
Quality master
data
Quality inspections
Quality planning
SAP QM
Quality audits
Complaint
management
With SAP S/4HANA:
Simplified QM processes and SAP Fiori apps
Role-based dashboards for all quality users
Visual QM with Visual Enterprise and 3D model
Standardized complaint and corrective-and-preventive-action processes and integrated R&D and engineering
With traditional system:
Lack of end-to-end insight and visibility with disparate quality systems and processes
Analysis based on past performance instead of proactively based on asset and production performance
No real-time simulation or predictive capabilityProcess excellence
Traditional
Strategy
New
Strategy
IoT connectivity
Manufacturing Cloud
Streamlined test equipment
management
Standardization of issue
resolution procedures
Predictive quality
management
Simplified inspection
planning process
Machine- Learning
capabilities
Advanced closed loop
inspection planning
Comprehensive analysis
of quality management
Preconfigured QM
scenarios
Integrated QM
capabilities
Digital Core
Third-party
collaboration
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 26CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Business InnovationIntegrated Quality Management
Functional Capabilities
User Experiences
Technical Capabilities
» Support for core QM processes with new roles with SAP Fiori user experience (UX) for quality technicians, quality engineers, quality planners, quality managers, quality auditors, calibration technicians
» Integrated search functionality in SAP Fiori with further navigation targets
» Intuitive UIs for recording the results of different types of inspection characteristics
» Initial scope covers the simplified inspection process
in SAP EWM as part of SAP S/4HANA
» CDS (Core Data Services) views for quality inspections and master data
EfficientProcurement
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 29CustomerThis is the current state of planning and may be changed by SAP at any time without notice
SAP S/4HANA 1610Efficient Procurement
» Business process acceleration through seamless buyer and suppliercollaboration scenarios
» Reduced procurement cycle time
» Increased efficiency and effectively of buyers and accounts payables clerks
» Identify opportunities for the effective use of free cash
» Difficulty to gain transparency and hold track of supply information from various suppliers and their historical performance
» Complex, manual, time-consuming processes with high volume of purchasing documents and line items
» Poor end-user adoption with error-prone and inefficient processes
» Complexity of collaboration (internally and with vendors) to run diverse purchasing scenarios
» End-to-End integrated business process Procure to Pay across SAP Ariba solutions and SAP S/4HANA
» New opportunities of collaboration for matured buyer–supplier relations technically supported
» Buyers and suppliers running digital collaboration by exchanging business information through single data records
» Data integrity of SAP S/4HANA and SAP Ariba solutions increases overall process transparency for all involved parties
advanced
Availability to
Promise
Accelerated
Material
Requirements
Planning
Real time
Inventory
Management &
Material
Valuation
Integrated
Quality
Management
Effective Order
Management &
Billing
Simplified
Procurement
Integrated
Extended
Warehouse
Management
Industry to
Core (DIMP, Oil,
Retail)
Entire S/4HANA
Finance
scope included
in the core
Embedded
Software in
Product
Development
Optimized
Portfolio and
Project
Management
Consistent
Fiori UX for
SAP S/4HANAEfficient
Procurement
Throughout SAP S/4HANA, the purchaser receives support in his daily work with the Procurement Overview App, is able to see all relevant information (analytical and transactional) on one screen, and can show all data in real-time as well as can drill-down for further details or perform direct actions.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 30CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Traditional System – Buyer & Supplier Collaboration Reinvented Business Processes with SAP S/4HANA
Business process viewEfficient Procurement
With SAP S/4HANA:
Full transparency of process status per PO & INV line item
Real-time updates of business process information
Increased process efficiency for Buyers and Suppliers
Short cycle times
Opening up business opportunities for the company’s debit / credit accounting
Data integrity of business information across systems
Direct exchange of business information
With traditional system:
Loose collaboration between suppliers and buyers
Many manual interfaces
Error-prone processes
Inefficient collaboration due to limited transparency
Long cycle times
Difficult to identify new business opportunities
Remittance Advice
Goods Receipt
Purchase Order Purchase Order
confirmation
Ship Notice
Invoice
Clearing of
open items
CC-Invoice
Invoice status
update
(Payment date)
Payment proposalAgree on Early
payment
Cycle Time Cycle Time
Process excellence
x Waiting Time
End DateStart Date
1Purchase
Order
Purchase Order
confirmation
Goods Receipt
InvoiceCC-Invoice
Remittance AdviceClearing of
open items
2
3
4
BUYER SUPPLIER
Traditional
Strategy
New
Strategy
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 31CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Business InnovationSourcing & Procurement – Operational Procurement
» Leverage catalog buying in self-service requisitioning processes
» Monitor critical business events, purchasing spend and supplier performance in “Procurement Overview Page”
» Increase supplier relationship and performance by using activity and task management functions
» Leverage purchasing category in real-time analytics to monitor the key performance indicators (KPIs) along business responsibilities
» Visualize planned spend versus actual spend per purchasing category
» Use new SAP Fiori apps for sourcing and contract management – manage requests for quotation and supplier quotation
» Create sourcing request in Ariba Sourcing out ofSAP S/4HANA
» Structure and merge material groups into the new business entity “purchasing category”
Functional Capabilities
User Experiences
Technical Capabilities
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 32CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Purchase Orders
Buyer & Supplier CollaborationProcure to Pay Process
Goods Receipts
Ship Notice
Invoices
Invoice Status Update
Purchase Order
Invoice
Payment
PO confirmation
Request for Quotation / Supplier
Quotation Quote / Award
Digital Handshakes
Request for Quote
CC-Invoice; MM invoices
Payment Proposal
Early Payment
Sourcing
Collaboration
Order
Collaboration
BUYER SUPPLIER
Remittance Advise
Invoice
Collaboration
DiscountManagement
Invoice
Collaboration
IntegratedExtended WarehouseManagement
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 35CustomerThis is the current state of planning and may be changed by SAP at any time without notice
SAP S/4HANA 1610Integrated Extended Warehouse Management *
» Plans to bring the full-scope SAP EWM into SAP S/4HANA software, which will provide customers with flexible deployment options to run all kinds of warehouses within a single SAP solution
» Full access without replication to a decentralized EWM system for:
• Business partners
• Material and product data
• Batch master
» Facing pressure from an increased number of smaller orders via a growing number of sales channels
» Need to improve customer order synchronization to seamlessly support customer order requests
» Focus around achieving omnichannel order fulfillment excellence
» Smaller e-commerce orders forcing organizations to create more “mini-warehouse zones” within their existing physical structures
» One System(Master Data, Customizing, UX)
» Reduce Data-RedundancyLean Processes with Less Business DocumentsSimplification
• Process simplifications compared to the SAP Extended Warehouse Management (SAP EWM) application, version 9.4, and its related products
• Technical simplification compared to SAP EWM 9.4 and its related products
advanced
Availability to
Promise
Accelerated
Material
Requirements
Planning
Real time
Inventory
Management &
Material
Valuation
Integrated
Quality
Management
Effective Order
Management &
Billing
Efficient
Procurement
Integrated
Extended
Warehouse
Management
Industry to
Core (DIMP, Oil,
Retail)
Entire S/4HANA
Finance
scope included
in the core
Embedded
Software in
Product
Development
Optimized
Portfolio and
Project
Management
Consistent
Fiori UX for
SAP S/4HANA
Integrated
Extended
Warehouse
Management
Throughout SAP S/4HANA, you can manage your Warehouse to appropriately support evolving omni-channel order fulfillment requirements. Operate the Warehouse Management with processes like stock blocking (QM inspection documents, simple tracking who has blocked the stock, for how long was it blocked and who unblocked the stock).
.
* does not reflect licensing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 36CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Traditional system Reinvented Business Processes with SAP S/4HANA
Business process viewIntegrated Extended Warehouse Management
With SAP S/4HANA:
One System: Direct usage of master data and support of 40-digit material number
Avoid data redundancy: Avoid redundant objects and direct access to central objects
Simplification and reduction of data redundancy
With traditional system:
Complex processes to align multifaceted supply chain realities and difficult economic conditions
Lack of end-to-end insight and visibility with disparate systems and processes
Analysis based on past performance and no real-time simulation capability
Scan VAS Picking
Consolidation
Goods Receiving Shipping
Cross Docking
VAS
Warehouse Management
3D Printing & in-house
production
Telematics Data
RFID Item Level
3D Scan, balance
Smart robots
Autonomous fork lifter /
Indoor positioning
Value-Added Services (VAS): assembling products,
packing products, labeling, or kitting
Storage
Stock posting
change
Inspection Lot
Check Pending
Inspection lots and record
inspection results
Capture usage
decision
Stock posting
change
EWMECC
Select stocks based
on criteria
Create QIE
document per HU
Create Quality Notification for
Material and batch
Update QIE
Document
Read QIE Document by External
Number
Decide Quality Inspection
Document
Stock Posting
QRFC
QRFC
QRFC
RFC
RFC
Backgro
und J
ob
QIE: Quality Inspection Engine
HU: Handling Unit
Traditional
Strategy
New
Strategy
Process excellence
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 37CustomerThis is the current state of planning and may be changed by SAP at any time without notice
On the fly aggregation
MATDOCMaterial Document
Master data without Stock aggregates
MARC MARD
Aggregates
MSTQ
MSTE
MSTB
MSSQ
MSSA
MSPR
MSLB
MSKU
MSKA
MKOL
MCHB
MSTQH
MSTEH
MSTBH
MSSQH
MSSAH
MSPRH
MSLBH
MSKUH
MSKAH
MKOLH
MCHBH
History Document
MARDH
MARCH
MKPF
MSEG
Inventory movements
Material Master
Master data with
Stock aggregates
MARC MARD
MARCH MARDH
Master
data
Transactional
data
26 aggregate
tables
Simpler
Data Model
Traditional disk-based ERP In-memory ERP
Business InnovationSimpler Data Model – Example Inventory Management
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 38CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Simpler
Data ModelBusiness InnovationReduction of Data Redundancy – Direct Read of SAP S/4HANA Master Data
Purchase Order
Replicate Orders
Expected Goods
Receipts
Create EWM
Inbound Delivery
Purchase
Order
Inbound
Delivery
ERP EWM
Create EWM
Inbound Delivery
Inbound
Delivery
Sales Order Sales Order
ERP EWM
Outbound Delivery
Outbound Delivery
Request
EWM Outbound
Delivery Order
Pick
Pack
…
Outbound Delivery
EWM Outbound
Delivery Order
Pick
Pack
Purchase Order
Production Order
ERP EWM
Inbound Delivery
Inbound Delivery
Notification
EWM Inbound Delivery
Order
Unload
Put away
…
Inbound Delivery
EWM Inbound
Delivery Order
Unload
Put away
Purchase Order
Production Order
Material Posting Material
Posting
ERP EWM
Outbound Delivery
Posting Change
Request
Posting
Change
Outbound
Delivery
Posting Change
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 39CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Business InnovationSAP EWM & SAP S/4HANA – Outlook
SAP EWM embedded in
SAP S/4HANA*
New deployment option for
our customers
Small & midsize warehouses;
production warehouses
» Decentralized SAP EWM (integrated to SAP ERP or SAP S/4HANA) is planned to be a long-term valid deployment option for SAP EWM
for good reasons (e.g. regional EWM systems, risk mitigation, specific planned down-times, scale-out for large DCs , multi-ERP connected; different release cycles; proximity to warehouse
(MFS); ..)
» Decentralized SAP EWM and central S/4HANA EWM are planned to share a common core of warehouse management functionsThis common Core is planned to evolve over time with new functions in both EWM options.
» Decentralized SAP EWM and central SAP S/4HANA EWM are planned to have different technical integration features with SAP ERP, but
identical integration with other SAP systems (e.g. GTS, TM, ..)
» Decentralized SAP EWM and central SAP S/4HANA EWM are planned to cover the same business scenarios & processes with only
minor exceptions e.g. central SAP EWM can only integrate with local ERP client, no multi ERP client integration will be possible as required in some LSP (Logistics Service
Provider) scenarios
* See Simplification List
Warehouse
Management*
Integrated
SAP EWM
LES (WM)
SAP EWM (Decentralized )
On Premise
Industry to Core- Retail -
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 42CustomerThis is the current state of planning and may be changed by SAP at any time without notice
SAP S/4HANA 1610Industry to Core – Retail *
» On-click self-service
» Intelligent and authentic customers interactions
» Self-learning autonomic decision processes into retail forecasting, planning and execution processes
» Leverage customer experience with easy shopping pathway
» Point of sales with optimized inventory turnaround, shelves space, and consumer insights
» Consumers connected and the challenge for retailers is maintaining the key role in consumer ecosystem of product and service providers
» Consumers wanting everything now –information by buttons, fulfilment information, discount, sales assistants, support
» First release of SAP S/4HANA Retail solution for merchandise management**
» Integration to SAP S/4HANA Marketing Cloud solution
» Full usage of SAP S/4HANA features like:
• Streamlined procure-to-pay
• Accelerated plan-to-product
• Optimized order-to-cash
• HR connectivity
• Core finance
advanced
Availability to
Promise
Accelerated
Material
Requirements
Planning
Real time
Inventory
Management &
Material
Valuation
Integrated
Quality
Management
Effective Order
Management &
Billing
Efficient
Procurement
Integrated
Extended
Warehouse
Management
Industry to
Core (DIMP, Oil,
Retail)
Entire S/4HANA
Finance
scope included
in the core
Embedded
Software in
Product
Development
Optimized
Portfolio and
Project
Management
Consistent
Fiori UX for
SAP S/4HANA
Industry to
Core
Retail
Solve upcoming market needs immediately and professionally with an intelligent and user-friendly retail solution combined with Real-Time Inventory, decrease costs for overstocking or being out of stock and increase sales due to better understanding of customerbehavior.
Source: IDC Research ** Internal working title as official name not yet defined* does not reflect licensing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 43CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Marketing and
Merchandising
Traditional system Reinvented Business Processes with SAP S/4HANA
Business process viewGain deeper understanding of customer needs and manage complex buying process
Industry Solution - Retail
Procure to Pay
Plan to Product
SAP ERP
Procurement and
Private Label
Supply ChainOmnicommerce
Customer Experience
IoT connectivity
With SAP S/4HANA:
Simplified processes and SAP Fiori apps
Role-based dashboards for all users
Increased competitiveness with integrated, fast and flexible business processes
With traditional system:
Lack of end-to-end insight and visibility with disparate systems and processes
Analysis based on past performance instead of pro-actively based on customer Insights and Merchandise and Assortment Planning
No real-time simulation or predictive capability
Marketing Cloud
SAP BW
Order to Cash
Request to
Service
Core Finance
Core Human
Resources
Predictive
Analytics
Analytics
Filling / Subscribe
Personalized
coupon
Route planning
Personalized
communication
Simple order from
the App
Sharing experiences
Navigating in
the Store
Customer Experience
Omni-Channels
Customer Interaction
Digital Core
Point of Sales
Customer Experience
Traditional
Strategy
New
Strategy
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 44CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Business InnovationSynergies & collaboration in 3 dimensions
Innovation in business processes
■ Throughput in inventorymanagement and valuation
■ MRP on HANA
■ ATP
■ Rebate processing
Innovation in Architecture
■ Throughput
■ Scalability
■ Principle of one
■ SAP Fiori
■ TCO reduction
Innovative Cross Industry Business Processes for:
■ Consumer Products, Wholesale Distribution, Life Sciences, Postal, Oil & Gas, High Tech, and more
■ Processes:
POS Integration (in- and outbound)
Sales Price Calculation
Promotions
Allocation
Product master data management (incl. mass maintenance and reference concept)
Merchandise distribution
Assortment management
Vendor Managed Inventory
Store processes via simplified user interfaces
Allocation Run (order ….)
And any more
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 45CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Retail provides leading processes for cross-industry customers
Retail industry customers
26%
Outside Retail industry customers274%
Retail is one of the most widely used industry solution within SAP.
This solution is heavily used by cross industry customers.
Therefore SAP´s strategy has to support these End-to-End Processes via SAP S/4HANA.
1 Early Watch Analysis (EWA) data 2014, customer industry
assignment based on Master Code2 Ratio based article maintenance from previous slide
Total distribution of Retail usage inside and outside of Retail:Consumer Goods Products, Consumer Products Wholesale,
Automotive, High Tech, Oil & Gas, etc.
68%
Allocation Table
32%from Retail1
39%Store Connectivity
61%from Retail1
80%
Retail Stock Overview
20%from Retail1
49%
Sales Price Calculation
51%from Retail1
of customers using
IS-Retail are non Retail
of customers using
IS-Retail have no store connectivity
of customers using
IS-Retail have no allocation tables
of customers using
IS-Retail have no Sales price
Calculation
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 46CustomerThis is the current state of planning and may be changed by SAP at any time without notice
SAP S/4HANA – Transforms Retail business processesReimagine business processes for fundamentally higher performance
Finance
Allow for visibility into the state of the business at any time:
• Enable real-time financial close for faster, more accurate, and more collaborative decision making and execution enterprise-wide
• Perform soft-close to understand store and category level profitability in real time
HR
Manage, develop, reward, and retain an effective workforce:
• Integrate end-to-end HR and financial processes for budget and head count
• Develop the right talent and skill set in a changing environment with demanding customers
Digital CoreWorkforceengagement
Omni-customer experience
Supplier collaboration business networks
Assets & Internet of Things
Customer centric Marketing & Merchandizing
Sourcing Procurement & Private Label
Supply chainOmnicommerce Customer
Experience
Deliver compelling, seamless, and reliable shopping experiences
• Use real-time customer analytics for personalized offers at the moment of decision
• Create effective, targeted customer engagement across channels
• Empower your store and sales personnel with a single view at the customer
Enable flexible and reliable omni-channel deliveries
• Create one unified view at demand everywhere
• Optimize inventories with real time visibility
• Drive real time response to granular changes across the supply network
Connect to global Business networks and increase procurement efficiency:
• Collaborate instantly with global suppliers via the Ariba Network
• Enable endless aisles with large complementary assortments
• Automate procurement proposals based on real-time inventory and sales forecasts
Maximize revenue generation with real-time customer insights and predictive analysis
• Understand your customers in detail for targeted promotions to granular segments
• Create relevant assortments based on direct customer insights
• Respond to changes in demand and adjust pricing and promotions in real time
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 47CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Marketing and Merchandising
» Harmonization of “article” and “material” combined with new user experience
» Unified concept of site, customer, vendor and business partner record
Procurement and Private Label
» Increased efficiency in the procure-to-pay processes, new analytical apps and spend key performance indicators, integration in the Ariba Network for purchase order and invoice
Supply Chain
» Simplified data model, resulting in increased through-put and flexible analytics at the most granular level
» Elimination of locking and increased throughput for standard price utilizing material ledger, so customers can use multiple currencies and valuation methods for different accounting laws such as GAAP
Omni commerce Customer Experience
» Enablement of monitoring of end-to-end order-to-cash process and taking actions for any exceptions, with information on the exceptions to resolve the issues
Business InnovationInnovation highlights for retail
Functional Capabilities
User Experiences
Technical Capabilities
Innovations from SAP S/4HANA that will be benefit merchandise management functionality in the upcoming release of the first version
of SAP S/4HANA Retail.
Embedded Softwarein Product Development
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 50CustomerThis is the current state of planning and may be changed by SAP at any time without notice
SAP S/4HANA 1610Embedded Software in Product Development *
» Support software management in entire product life cycle
» Accelerate new product development by responding quickly to issues collected from market
» Leverage requirements- based product design and impact analysis
» Monitor the product development status, including design, quality, and development progress
» High Research & Development expenses associated with Software: 18% Auto, 51% A&D, 41% in IM&C, 71% Telco Equipment, 53% Consumer Electronics
» Hardware manufacturers deliver differentiator with the software
» Increasing customers' expectation to include intelligence in products simplifying its usage and maintenance resulting in more complex products
» Embedded Software maintained in the development product structure
» Integration of software development tools
» Handover to manufacturing and to service
» Compatibility management between software, hardware and mechanics for the product lifecycle
Throughout SAP S/4HANA, the product engineer can manage embedded software versions in the SAP Product Lifecycle Management (SAP PLM) application and can check product structure for compatibility of embedded software.
advanced
Availability to
Promise
Accelerated
Material
Requirements
Planning
Real time
Inventory
Management &
Material
Valuation
Integrated
Quality
Management
Effective Order
Management &
Billing
Simplified
Procurement
Integrated
Extended
Warehouse
Management
Industry to
Core (DIMP, Oil,
Retail)
Entire S/4HANA
Finance
scope included
in the core
Embedded
Software in
Product
Development
Optimized
Portfolio and
Project
Management
Consistent
Fiori UX for
SAP S/4HANA
Embedded
Software in
Product
Development
* does not reflect licensing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 51CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Traditional system Reinvented Business Processes with SAP S/4HANA
Business process viewSupport software management in entire product life cycle
Requirements
SAP PLM
IoT connectivity to Asset
Intelligence Network
With SAP S/4HANA:
Support of PLM processes for cyber-physical products
Ensure the compatibility of embedded software
Accelerate new product development by responding quickly to issues collected from market
Ensure the data quality for all follow up processes so that they can do the right things like maintenance, after sales service.
With traditional system:
Disconnected development process regarding mechanical and software components
Complex processes to align software and product development
Information of Software Component are often not up to date and also not consumable by mechanical engineers
Legacy System for
Software Engineering
Product
Development
Development
Software
Requirements
Requirements Management
Digital Core
SAP ERP
Test
Deploy
Online and Offline Documentation for After Sales Service
Produce
Sell and Deliver
Derive
Deliver
Manual
Interface
Product
Lifecycle
Engineering Data and Model
(Mechanical, E/E, Software)
Produce
Test and Validation /
Compatibility / FMEA
Sell and Deliver
Development
Test
Deploy
Software Engineering
Product
Lifecycle
Cha
ng
e
Ma
na
ge
me
nt
Process excellence
Traditional
Strategy
New
Strategy
Software
Lifecycle
Software
Lifecycle
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 52CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Business InnovationProduct LiveCycle Management
Main features» Manage embedded software versions in the SAP Product Lifecycle
Management (SAP PLM) application
» Manage embedded software in the engineering product structure
» Maintain compatibility information between software and other components of a product
» Check product structure for compatibility of embedded software
Business value» Support of PLM processes for cyber-physical products
» Ensure the compatibility of embedded software
Innovation description
Embedded software is computer software that is embedded in one or multiple products. It provides functions together with varioushardware and systems. For example, embedded software can be used to control or optimize the functions of the mechanical part or electrical part of a product.
The embedded software typically has specific requirements on the hardware and other software that allows it to function accurately. Embedded software management allows to define such software as component of the product structure and to ensure that the embedded software is compatible with other components of the product as defined by relevant constraints.
OptimizedPortfolio and ProjectManagement
Automation
System of Intelligence
Agility (Integration / HCP)
Business Network
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 55CustomerThis is the current state of planning and may be changed by SAP at any time without notice
SAP S/4HANA 1610Optimized Portfolio and Project Management *
» Streamlined and efficient portfolio and project management with role-based user interface
» High throughput due to simplification of the application object model
» External tools that can access portfolio and project data via core data services
» Lower TCO by eliminating duplicate functions
» Overwhelming number of simultaneous projects within a company
» Projects in larger business organizations are complex and often don’t support larger, company-wide business goals
» To cover all aspects of planning and execution of product portfolios and projects integration to all LOB solution needed
» Comprehensive new role-based user interface with SAP Fiori
» Integration to new SAP cloud solutions like SAP SuccessFactors solutions
» New database model for easier consumption by analytical tools like Excel, SAP BusinessObjectsLumira software, and so on
» Simplified application object model
» Reduced complexity by eliminating duplicate functions
advanced
Availability to
Promise
Accelerated
Material
Requirements
Planning
Real time
Inventory
Management &
Material
Valuation
Integrated
Quality
Management
Effective Order
Management &
Billing
Efficient
Procurement
Integrated
Extended
Warehouse
Management
Industry to
Core (DIMP, Oil,
Retail)
Entire S/4HANA
Finance
scope included
in the core
Embedded
Software in
Product
Development
Optimized
Portfolio and
Project
Management
Consistent
Fiori UX for
SAP S/4HANA
Optimized
Portfolio and
Project
Management
Effective portfolio and project management strategies require enterprises to align products and services with the organizational vision and strategy. Enterprises initiate new projects to fill gaps and delivery business outcomes, while underpinning decisions with reliable analytics and integrated processes and supporting quality work on time and within budget. To make the right decision, the project manager needs to have insights into the overall financial and capacity demand to match this against the available resources.
* does not reflect licensing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 56CustomerThis is the current state of planning and may be changed by SAP at any time without notice
ERP Analytics
Business Process ViewAutomated Processes with the new SAP Fiori User Interface
Future Direction with SAP S/4HANA:
Portfolio and project reporting enhanced with real time data from ERP
No batch load process required to extract data from ERP Accurate analysis of project costs and resource availability Cross project analysis embedded in portfolio and project
management Drill down into projects cost records due to direct access to ERP
information Simplified interface reduces implementation efforts for ERP
integration Portfolio analysis capable to support a large number of projects
and items
With traditional system:
ERP information in portfolio and project management system may be inaccurate due to batch load process
Visibility into reporting of actual project costs requires multiple applications
Original ERP details get lost due to aggregation in upload process Higher TCO due to integration scenarios Reporting of large project portfolio requires OLAP (Online Analytical
Processing) system
Traditional system Reinvented Business Processes with SAP S/4HANA
User
interaction
Ad hoc Financial
Accounting
User
interaction
Ad hoc Human Capital
Management
User
interaction
Ad hocProcurement
User
interaction
Ad hoc
Portfolio and Project
Management
Batch Processes
Cross Project
Analytics
Batch Data Load
OLAP
Reporting
Business
Financial
Accounting
Human Capital
Management
Procurement
User interaction
(Professional)
Enterprise Portfolio and Project Management
Cross Project
Analytics
(Real Time)
Direct Access
Product Life Cycle
Management
User interaction
(Casual User)
Process excellence
Traditional
Strategy
New
Strategy
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 57CustomerThis is the current state of planning and may be changed by SAP at any time without notice
Business InnovationHighlights for Portfolio and Project Management
Increased end-user productivity with SAP Fiori UX and improved performance
Overview Monitor – Project Progress
» Overview dashboard for project manager
» Quick overview of what requires project manager’s attention
» Monitoring project progress in Gantt charter in SAP Fiori
» System-guided navigation to critical project tasks
Upcoming Activities for Project Team Members
» Task dashboard for triggering task confirmation
» Checklist-item dashboards
Availability of SAP Portfolio and Project Management Application for SAP S/4HANA 1610
» Simplification of code base and feature set
» Simplified and SAP HANA optimized data model
» Simplified authorization concept
» Initial set of core data services (CDS) views for external consumption
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 59CustomerThis is the current state of planning and may be changed by SAP at any time without notice
© 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
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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 forward-
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