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openSAP SAP Business Suite 4 SAP HANA in a Nutshell
UNIT 1
00:00:12 Hello and welcome to a new openSAP course which
provides you knowledge about SAPs
innovation SAP S/4HANA in a Nutshell.
00:00:21 My name is Sven Denecken, Global Vice President
Co-Innovation and Strategy for SAP
S/4HANA, and Im delighted to guide you through this course.
00:00:31 I would like to start with some insights on what you
can expect this week. So first, what is SAP
S/4HANA exactly?
00:00:43 SAP S/4HANA is SAPs next-generation Business Suite. SAP
S/4HANA was unveiled in New
York on February 3,
00:00:51 and today openSAP is offering you the opportunity to
get an overview of the further insights
into this new SAP offering.
00:01:02 SAP S/4HANA is fully architected for the most advanced
in-memory platform, SAP HANA, and
it is designed on the most modern design principles with SAP
Fiori user experience.
00:01:17 It will be offered as cloud, on-premise and hybrid
deployment option to provide the maximum
choice to customers.
00:01:27 SAP S/4HANA is designed to drive business innovation
with simplicity by connecting people,
devices and business networks in real time.
00:01:39 This to support the development of new business models.
It will also help to accelerate the on-
ramp to topics like the Internet of Things and big data.
00:01:50 And, of course, the simplified data models allow
customers to re-imagine their IT, helping to
drive lower costs and aiming to help deliver IT efficiency.
00:02:02 Let us walk quickly through the agenda and see what the
speakers have for you.
00:02:10 The first speaker of this course is a man that needs no
introduction, Bernd Leukert from the
SAPs Global Executive Board.
00:02:18 He is giving his perspective on SAPs product strategy
and SAP S/4HANA specifically.
00:02:25 And his focus areas include topics like how to operate
in a world of increasing complexity and
constant change. This is not new, of course,
00:02:37 but it is increasingly pronounced and forcing us - and,
of course, also you as customers - to
rethink the boundaries and definition of enterprise software in
a digital, transforming world.
00:02:51 He will also elude to how we all are faced with a
convergence of ubiquitous connectivity
combined with decreasing bandwidth costs,
00:03:00 and touch user interfaces on mobile devices, cloud
computing, in-memory technology, the
Internet of Things and big data.
00:03:11 Importantly, he will elude to how SAP S/4HANA creates
unique opportunities to not only run
the day-to-day business in real time with industry best
practices
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00:03:24 but also to reinvent business models and drive new
revenues.
00:03:30 The second speaker in line is Markus Schwarz, Senior
Vice President and General Manager
for SAP S/4HANA in Global Customer Operations.
00:03:38 He will talk about his point of view on the topic and
how SAP S/4HANA is where SAPs Run
Simple strategy materializes in the core product offering, the
SAP Business Suite.
00:03:52 Well hear how dramatic simplification of core
applications enables business model and
process innovation,
00:04:00 how simplification of system landscapes and data
footprint for lower TCO helps customers
and, of course, also IT,
00:04:10 where simplification of user and system interaction and
provisioning an integrated user
experience, on premise and in the cloud, make the
difference.
00:04:21 Next in line: Wieland Schreiner, Executive Vice
President and Chief Product Owner for SAP
S/4HANA. He will talk about the great simplifiers and the
representation of the next-generation
ERP
00:04:36 because S/4HANA is natively built on SAP HANA, well
leveraging the four capabilities at its
best like, for example, text mining, prediction, simulation and
decision support.
00:04:49 He will show how this creates unique opportunities to
dramatically simplify the data model. We
heard about that before: No aggregates, no indices, but also no
redundancies.
00:05:03 Because S/4HANA is designed for the end user, offering
the Fiori user experience. Well see
how this embeds with the exception-driven analytics and
automated decision proposals.
00:05:19 The next speaker is Jens Krger, Senior Vice President
and Head of Line of Business Finance
and the SAP Innovation Center.
00:05:27 He will share his point of view about SAP Simple
Finance as the frontrunner of SAP S/4HANA.
00:05:36 He will share with us how it provides instant financial
insight with highest flexibility, how it
demonstrates the paradigms underlying S/4HANA, most importantly,
the simplification,
00:05:48 and will also offer accelerated and simplified
processes based on a simple data model
following the principles of single source of truth, all with a
simple and intuitive user experience.
00:06:03 He will show how it provides functionality that is
comparable to the well-known scope of SAP
ERP Financials in a non-disruptive manner.
00:06:15 Next in line is Rudolf Hois, Vice President of
Innovation Delivery for SAP S/4HANA, and what
hell share with us in that unit,
00:06:25 well, that centers around how to deliver public cloud,
managed cloud and on-premise solutions
for lines of business in industries,
00:06:35 how to combine our latest innovations with the
in-memory platform, user experience, and the
global cloud,
00:06:44 and finally, how to achieve a non-disruptive adoption
path for installed base customers.
00:06:52 The next unit is covered by Steffen von Berg, Global
Head of Customer Engagement for Cloud
Delivery and Services.
00:07:01 His focus is on how to help customers to move to the
cloud edition in a simple way, how to
help to avoid unnecessary pre-investments in hardware and
services,
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00:07:12 and of course, how to get a fast proof of the
unbelievable advantages of a simplified and very
fast Business Suite with SAP S/4HANA,
00:07:24 and finally, how to give customers the choice to drive
their own landscape or to use the SAP
cloud.
00:07:34 Last but not least, Im happy to share my point of view
on SAP S/4HANA in the last unit of this
course,
00:07:41 where we want to focus on how we help customers to run
simple and drive business value in a
digital and networked world,
00:07:51 why we deliver public cloud, managed cloud and
on-premise solutions for lines of business in
industries,
00:07:59 and how we combine our latest innovations: in-memory
platform, the ultimate user experience,
and the global cloud for what you are going to see in SAP
S/4HANA.
00:08:11 Last but not least, we want to have a call for action
on how we together can define strategic
innovations collaboratively through a co-innovation
approach.
00:08:25 For further information, please always also see our
homepage via sap.com/s4hana.
00:08:34 And make sure you frequently check the assets in the
course repository from this openSAP
course for upcoming valuable information.
00:08:45 And, also a big note, there soon will be a deep-dive
course on S/4HANA here on openSAP.
00:08:55 So now, lets start the course with Bernd Leukert.
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UNIT 2
00:00:14 Welcome back to this openSAP course about SAP S/4HANA
in a Nutshell.
00:00:20 My name is Bernd Leukert. And after Sven Deneken's
welcome unit, I will now guide you
through Unit 2: Introduction to SAP S/4HANA.
00:00:31 Let me first set some context. Today we operate in a
world of increasing complexity and
constant change. This is not new.
00:00:41 However, the convergence of unlimited connectivity,
mobile devices, cloud computing, big
data, in-memory technology
00:00:50 as well as the Internet of Things is forcing our
customers and us to rethink the boundaries and
definition of enterprise software in a digital world.
00:01:01 We see a new paradigm of interconnected networks, of
both, companies and people where
data is omni-present.
00:01:11 Just consider the number of 500 million tweets per day,
4.7 billion things are shared on
Facebook daily,
00:01:21 and 50 billion connected machines expected by 2020,
creating new opportunities, creating new
challenges,
00:01:30 and creating new sources of competitive advantage as
companies master the digital
transformation.
00:01:38 We as SAP are determined to seize this opportunity.
Therefore, we have defined our product
strategy along three pillars.
00:01:48 First, the platform that enables customers to build and
extend applications to differentiate their
business, open up the world of data, for example, with Internet
of Things.
00:02:03 Secondly, the applications that are modern, integrated,
and leverage the insight from the whole
value chain in every transaction and every decision.
00:02:15 And thirdly, the network that goes beyond the company
network and brings the outside world
directly into our applications.
00:02:27 SAP S/4HANA is a major step forward for our
applications. So, many ask: Why is SAP
S/4HANA and what is it?
00:02:39 Simply stated, it is the logical successor for our
flagship product, the Business Suite. It's the
next generation enterprise software for the digital age.
00:02:51 So what is new? SAP S/4HANA is based on three things: A
massively simplified data model, a
completely Fiori-enabled user interaction with guided
configuration.
00:03:06 So let me explain each of the 3 drivers. First, it runs
on a substantially simplified data model.
00:03:14 In the past, indices and totals tables were created to
avoid that the system was always
calculating.
00:03:23 This happened to ensure overall system performance but
at a price: Complexity and inflexibility
of the system.
00:03:33 Both have now been eliminated from the system as we
substantially simplified our data model.
00:03:41 For example, a typical booking in Finance now touches
only 4 instead of 15 tables working on
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a document level.
00:03:52 What is key for our customers? As we maintain the core
data model, it is now easier to
integrate in
00:04:00 and to migrate from existing suites in comparison to
any other upgrade in the past.
00:04:08 Secondly, it is completely Fiori-enabled. SAP S/4HANA
has a great user experience on any
device across the 43 core roles.
00:04:21 It's a huge step forward for all end users and
simplifies the system access and usage
massively.
00:04:30 And thirdly, SAP S/4HANA has a guided configuration and
pre-engineered integration that
makes it completely easy to implement and to run.
00:04:43 The guided configuration means that the system tells
you or even reminds you what needs to
get done - in an easy, understandable way.
00:04:54 Changes can be implemented swiftly, and the
pre-engineered integration brings together all
our applications.
00:05:03 All becomes one pre-engineered but yet flexible
solution, including our line-of-business cloud
applications.
00:05:13 It comes in packages, in bundles that can be sold
together and include software and
implementation content,
00:05:23 including pre-engineered rapid deployment solution
packages for integration and configuration.
00:05:30 And all this together with full choice for on-premise
and/or cloud consumption; in the cloud
both, private and public cloud.
00:05:42 So, new data-model, great user experience, and easy
configuration and integration means a
complete overhaul
00:05:52 from the top to bottom of our applications, of course,
leveraging the power HANA has given us.
00:06:01 So, how does this help our customers? Let's start with
the technical perspective. There are
three advantages:
00:06:11 First of all and most obviously, the data footprint is
being reduced, massively. And that is not
just a couple of percentages or half.
00:06:23 It's reduced by the factor of 14 at SAP already, and we
see a potential for up to factor 30.
00:06:33 That makes basically the biggest ERP systems possible
to run on in-memory.
00:06:41 Secondly, it increases the data throughput: As fewer
tables get touched, fewer tables get
locked. A much higher throughput can be achieved.
00:06:52 In our tests we have seen increases with up to factor
3.
00:06:57 And thirdly, the aggregates and indices made structural
changes to the data setup very hard to
implement. These restrictions are gone.
00:07:11 The flexibility in system setup is increased. Combining
these together, SAP S/4HANA
translates into a real business value for the enterprise.
00:07:24 SAP S/4HANA creates unique opportunities to not only
run day-to-day business in real-time
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with industry best practices,
00:07:35 but also to reinvent business models and drive new
revenues: Whole new business models
can be re-imagined
00:07:44 with the simplicity to connect to people, to devices
and to business networks, again in real-
time, which delivers new experiences and value to customers.
00:07:58 Internet of Things and big data become accessible to
any business - no more complex
business collaboration and interactions.
00:08:08 Also, business decision-making can be re-imagined with
the simplicity to get any insight on any
data from anywhere in real-time:
00:08:20 Planning, execution, prediction and simulation are now
all done on the fly to drive faster
business impact - no more complex data consolidation through
Excel and other means.
00:08:36 And finally, also business processes can be
re-imagined. The simplicity to focus on the
essential tasks, again in real-time,
00:08:46 creates flexibility and agility to change business
processes as needed for new efficiencies - no
more long-running batch jobs.
00:08:59 Why does this matter at all? Because customers at all
levels, from operational staff to the
boardroom, are demanding it.
00:09:09 On the operational level: Being able to access all
relevant data in real-time and transforming
technical predictive algorithms into business user
applications,
00:09:20 the transactional, operational workforce becomes
digitally empowered to a complete new level
of productivity.
00:09:30 When we empower the operational shop floor with
insights from data and algorithms, the role
of management and executives changes as well, for example, with
the boardroom of the
future.
00:09:43 This means that all business users at any level want
data at their fingertips -complete visibility
across the entire functional span of a company, instantly.
00:09:59 They want and need instant insights into their business
because that is how they can be more
competitive, how they shape and make strategic decisions, of
course, faster and more
accurate.
00:10:15 And that is what SAP S/4HANA does: Making businesses
more competitive with the power of
data and insight.
00:10:26 So, how do we get there? It is important to know that,
for each situation, the customer has full
choice,
00:10:35 full choice of deployment between cloud, on-premise and
even hybrid, regarding and
regardless of the customer situation.
00:10:46 For new customers, the journey is defined by a new
implementation of SAP S/4HANA with
simple adoption,
00:10:55 with its guided configuration, easy on-boarding, and
deployment with pre-configured best
practices.
00:11:04 For SAP Business Suite on any DB customers, SAP remains
committed to protect our
customers' investments.
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00:11:13 But to take advantage of the transformational
simplification, it requires the power of SAP
HANA.
00:11:21 The Business Suite customers can take advantage of SAP
S/4HANA in a non-disruptive way:
00:11:28 Moving to SAP S/4HANA for a typical existing SAP ERP
6.0 customer will require a move to
the latest enhancement package
00:11:41 and a database migration from any DB to SAP HANA
combined with the deployment of the
exchange innovation.
00:11:50 This means, current code is replaced by a significantly
simplified new code.
00:11:58 For existing SAP Business Suite powered by SAP HANA
customers, it is even faster as only
the deployment of the exchange innovation is required.
00:12:09 So, partners and SAP will provide an easy path for
customers to move to SAP S/4HANA with
pre-defined migration and deployment packages for quick time to
value.
00:12:25 However, what is common across all three customer types
is a consistent service offering to
support the customer journey.
00:12:34 Realizing that one size does not fit all, we remain
committed to providing our customers with
choice to deploy in the cloud, on premise or, again, in any
hybrid scenario.
00:12:51 For more than 40 years, SAP has been working
successfully with thousands of customers by
solving complex business and IT challenges.
00:13:01 Prior to S/4HANA, applications such as CRM, SRM, and so
on, have all been integrated
applications but with overlapping data models and possibly many
databases.
00:13:16 Now, SAP S/4HANA: We bring everything together in a
single system on a single platform and
database with one set of data,
00:13:29 massively reducing complexity and cost for the system
landscape, massive simplification to
enable new business processes,
00:13:41 analytics and reporting embedded in every transaction,
flexible business processes that allow
a more agile adaptation of processes.
00:13:51 This redefines how enterprise software creates value in
a complex world, in the new digital era.
00:14:01 However, this discussion cannot stop here. We see SAP
S/4HANA as the software for the
future.
00:14:11 That allows us to take a more holistic view of our
entire offering of pre-configured services,
such as Customer Engagement and Commerce, Fieldglass,
SuccessFactors, and so on.
00:14:28 For example, in the professional service context we are
able to seamlessly create a project,
drive staffing, billing definition,
00:14:37 and monitoring combined with a great user experience,
of course, in one solution.
00:14:44 This allows the entire product portfolio to act as an
enabler for business processes driven by
Internet of Things, big data, omni-channel capabilities, and so
on.
00:14:47 And for example, as Internet of Things spread, the
implications for business model innovations
are huge.
00:15:07 Sensor data can enable reliable predictions with
respect to potential failures in machines.
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00:15:17 Such failures can then be avoided or fixed as soon as
they occur, leading to an optimized
production cycle and better services. Such new features enable
new business models.
00:15:31 For example, car manufacturers can use the knowledge of
when, which, and why their cars will
fail to transform substantial parts of the business.
00:15:42 Customer service can be proactive and offer enhanced
customer intimacy. For instance, they
can plan more efficiently and contact the customer
proactively,
00:15:55 arrange inspection services with car pick-ups at home
and a replacement car, for example.
00:16:02 But also logistics of spare parts, refill products,
quality insurance and improvement, new car
design can all be brought to a complete new level. All this is
very exciting.
00:16:21 With SAP S/4HANA we start a journey to the digital
enterprise. We open endless opportunities
to advance competitiveness and productivity for any
business.
00:16:35 So thank you for taking the time today, and I look
forward to our journey together.
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UNIT 3
00:00:12 Hello. SAP has just announced its next-generation
Business Suite, the SAP Business Suite for
SAP HANA, short S/4HANA.
00:00:24 With this new product, SAP is helping our customers to
realize their vision of the perfect
enterprise,
00:00:36 which is a real real-time platform, which is integrated
and offers an integrated user experience,
which is open and extensible, and connected to the business
networks.
00:00:52 When SAP released the HANA database in 2011, we always
had in mind to leverage this
ground-breaking new database with almost zero response time for
building completely new
applications.
00:01:14 So as a first step, we put the Business Warehouse on
SAP HANA, which gave customers real-
time analysis, real-time reporting.
00:01:25 The next logical step was to put the entire Business
Suite on HANA, which brought a lot of
business value to our customers:
00:01:36 Real-time business, OLAP, OLPT together, and also in
this cloud with the HANA Enterprise
Cloud Model.
00:01:47 Now the next logical step was to design applications
that really leverage the capabilities of the
HANA database to the maximum extend,
00:01:57 to really tailor applications to the advantages of a
HANA database.
00:02:04 So as a frontrunner, SAP brought Simple Finance to the
market, which gave customers instant
financial insight with no aggregates, no indices, no delays - a
single source of truth.
00:02:21 Now we've then decided to do that with the entire
Business Suite. And we said we wanted to
leave two important barriers behind us.
00:02:33 One barrier was always that we had to design
applications that would fit any database, even
the slowest one.
00:02:41 With S/4HANA, we design applications that are tailored
to the advantages and to the
capabilities of the HANA database.
00:02:51 Also with the new product, we can really dramatically
simplify applications, take out
redundancies and also reduce the data footprint to a maximum
extent.
00:03:03 And the result is S/4HANA, which we launched beginning
of the year with a simplified data
model, a completely new Fiori-based user experience,
00:03:16 advanced processing and also choices of deployment: On
premise, private managed cloud
and public cloud, and of course multi-tenancy.
00:03:28 The business value for customers is really tremendous.
It allows our customers to re-imagine
their business models.
00:03:39 They get the simplicity to connect to people, connect
to business networks, to devices - with no
more complex collaboration. All businesses really connected.
00:03:52 Also, customers will be able to re-imagine their
business processes. They will get the simplicity
to focus on the essential tasks.
00:04:04 We will change, we will collapse business processes, we
will completely leverage the
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availability of a database that gives us almost zero response
time.
00:04:16 There is no more batch; there is no more delay, all
processes real-time.
00:04:22 Also with a connection to the outside world, with a
process management without any delays,
customers will be able to re-imagine their business
decisions.
00:04:37 There will be no more manual consolidations. Customers
will be able to make decisions on the
fly and at the highest level of granularity.
00:04:48 So they get the simplicity to get any insight for any
data from anywhere. Also there is good
news for the IT folks.
00:04:59 With the re-imagined business experience, with the
simplicity to get the job done leveraged by
the Fiori interface, customers will be able to significantly
improve end user productivity.
00:05:16 Also, with a dramatically simplified system
configuration, customers will be able to bring
systems up in a very short time and realize the business value
instantly.
00:05:32 Also, the data models have changed. The data model is
consistent with the previous data
model of the Business Suite but it has been dramatically
reduced.
00:05:42 The data footprint has been dramatically reduced, so
the in-memory platform enables
customers to also reduce TCO in a significant way.
00:05:55 Now, how can customers get there? There are multiple
choices of deployment and there are
multiple starting points customers are at.
00:06:06 Now for new customers, it's really easy. New customers
can immediately deploy S/4HANA on
premise, in the managed cloud or in the public cloud, and also
leverage that in a hybrid mode.
00:06:22 For customers that are on any DB, they need to get to
the latest enhancement pack. They
need to migrate their database to HANA,
00:06:33 and then they deploy the exchange innovation, which is
the simplified application, into their on-
premise installation.
00:06:44 If they want to move to the cloud immediately, it just
requires to transfer the data to the cloud.
And, of course, also here a hybrid deployment is possible.
00:06:56 Customers that have leveraged the advantages of the
Suite on HANA in the previous two
years have a big advantage
00:07:07 because they are on the latest enhancement pack, they
are already running on a HANA
database.
00:07:13 So what they need to do is, as a one step, deploy the
exchange innovation, the simplified
application, and then they are up and running with S/4HANA.
00:07:25 For the cloud, same thing here: They need to deploy
their data, they need to transfer the data
to the cloud, and they are up and running.
00:07:33 Now, SAP is supporting this transition for customers
with a number of packages:
00:07:41 Packages that help customers to connect S/4HANA with
cloud solutions to realize the hybrid
model,
00:07:51 packages that help customers to smoothly migrate their
data from the existing system to
S/4HANA.
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00:08:01 Our key objective is to enable innovation without any
disruption. With that, we believe,
customers can realize significant advantages.
00:08:14 They can change, they can take advantages of new
business models, they can significantly
speed up their processes,
00:08:23 they can collapse processes to fewer process steps, and
they also can make much better
decisions.
00:08:32 So, if you want to learn more about the advantages and
the business value of S/4HANA,
please also visit our homepage at sap.com/S4HANA.
00:08:44 Thank you very much.
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UNIT 4
00:00:12 Welcome to the Unit 4 of the openSAP course SAP S/4HANA
in a Nutshell. My name is
Wieland Schreiner.
00:00:20 I'm heading S/4HANA and will show you how
simplification drives innovation.
00:00:28 Let's focus on the three key enablers of this digital
transformation: SAP HANA, Real-Time &
Simplification, and SAP Fiori.
00:00:40 What does SAP HANA provide us as the key enablers for
our roadmap on S/4HANA?
00:00:48 I will focus on four native SAP HANA capabilities: Text
Mining, Analytics & Prediction,
Simulation, and Decision Support.
00:01:00 I show you this Text Mining based on our Customer
Engagement Intelligence solution where
we get thousands and millions of e-mails of unstructured
information.
00:01:13 Unstructured data will be a much more important source
in the future where we have to
analyze data and get the sentiments out of it.
00:01:24 So, deriving the sentiment out of this text and getting
the sentiment directly into our structured
information is a key asset which HANA can provide to us.
00:01:39 In Supply Chain, Analytics & Prediction is
extremely important. Analytics gives you the insight
in the past, but that's only the less important part.
00:01:50 The much more important part is: What can it give us
into the future, the insight into the future?
00:01:57 To predict how the capacity situation will behave over
the next weeks and months gives you
the complete insight into your logistics, into your supply
chain, which you have to plan.
00:02:11 Simulation is something which we need to get the
insight into our situation where we will run
into when something happens.
00:02:22 So you see here, if an order would come in, in the
response prototype, we see that we have a
simulation of how a big deal would influence our capacity
situation.
00:02:36 But not only taking a big deal. If you would simulate
that for multiple, hundreds of, thousands of
deals, you could easily see the bottleneck where you run into in
your Supply Chain Network.
00:02:50 Now let's come to a very interesting part. When the
system could provide you with the insight
of the needed decision,
00:03:00 then we are in the situation that we get the
intelligence which we had asked to be in front of the
system now into the system.
00:03:10 And with that we can drive the quality of best possible
decisions by simulating and getting the
decision support enabled by the system to the end user.
00:03:23 So, these are all great capabilities which SAP HANA can
provide natively as an engine,
00:03:30 so it's besides the fact that HANA is the best
in-memory, column-based database we have on
earth.
00:03:37 We can get all the capabilities now because the data
and all these algorithms come together
on this one platform.
00:03:46 How do we have to focus on the next part: Real-Time
& Simplification?
00:03:54 When we see a customer system, a real customer system
in the US, on a traditional database
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of close to 600 GB,
00:04:05 and we have a vision. And the vision is to get it down,
this data footprint, to the lowest possible
number you can get.
00:04:16 So clear HANA, with its compression and with its column
store, already drives down the
footprint by factor 5.
00:04:28 We have proven that with our Suite on HANA customers,
with our 300 live customers, with
over 500 projects, and with the 2000 customers.
00:04:36 We know that. That's a fact, which we get natively out
of HANA.
00:04:42 But when we go now to S4, and when we go to the
ultimate simple data model, then we have
seen a footprint reduction in Finance,
00:04:54 by getting rid of those tables which we showed you,
which we explained you that all this
aggregation and indices are not necessary anymore,
00:05:03 then we can drive it down by a factor 3. The same in
Simple Logistics: By getting rid of all
those tables, all this 26 tables which you saw on the last
slide.
00:05:16 So when we drive that for the whole system, we can go
to minimize that system by additional
factors.
00:05:26 And that's not the end of the story. If we now take out
of that system all that is not needed, so
all historical information,
00:05:36 if we go down to information where we only need the
actual information, then we can further
drive down the footprint of the system.
00:05:48 And when you see this vision which we have and see that
you can have half a terabyte system
compared to a data footprint which would easily fit into my
iPhone,
00:05:59 then you know where I am coming from. The vision is to
make that large system, this large,
complex system as simple and as tiny
00:06:08 that I can handle it with the lowest TCO possible and
with the highest flexibility you can
imagine. This is the vision that we have behind data footprint
reduction.
00:06:18 And it's not about factor 2 or percentages. It is a
massive approach which we want to take:
Simplification to the utmost possible possibility which you can
get.
00:06:32 We want to have the simplest, the most simplified data
model, just as simple as possible, and
reduce the data footprint by that to the maximum.
00:06:45 Let's get to the last aspect, and that's the user
experience.
00:06:50 We already saw some slides but I would like to focus
now on what does it really mean to do a
new user experience.
00:07:00 You see a screen from Customer Engagement Intelligence
which gives you, in a perfect way,
the customer journey.
00:07:07 From the buying event on the right side of the screen,
we can follow down which channel did
the customer use to inform himself before buying a product.
00:07:19 You know that when you do that in the Internet. That's
exactly the process which you do. So
visualize that, and visualizing that for all the customers which
we track,
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14
00:07:30 you get on one screen the full experience, the full
transparency. So this gives you the complete
analysis based on Text Mining, which is running in the
background to enable that.
00:07:41 So it gives you one experience to consume an
information in a way you could never consume
before. That we know from Fiori.
00:07:53 Fiori, based on HTML5 and based on the UI5 library from
SAP, provides you with this great
capability to run in the web and to even being technically
mobilized.
00:08:06 With the fact, that with the design principles from Sam
[Note: Sam Yen, SAP Chief Design
Officer], we build that role-based. We know who consumes that UI
in the front.
00:08:17 This brings us to another dimension. In the past, we
were building UIs where the end
consumer had to run the full intelligence in his head
00:08:33 to maintain the values on the left-hand side of that
screen and give that system all information
to run a resolution.
00:08:47 The resolution strategy, the resolution of the business
problem, had to be in the brain of the
user.
00:08:58 Now we want to build screens where we have the full
resolution strategy based on the role-
based concept already built into the system,
00:09:08 so that the intelligence is behind that screen which
means - if you look to the right side - you
not only get the full analysis of the simulation,
00:09:19 what would happen if you would use that resolution
strategy. You also get all the resolutions
which would be possible pointed out on the screen,
00:09:30 based on runs which happened during that transaction
and which were fast enough to provide
you with these resolutions and rate you those resolutions.
00:09:41 If you compare that to the past: In the past we had
several transactions and runs to come to all
these resolutions,
00:09:49 and then you would hopefully have run the right runs to
find the best resolution. This all can be
provided by a system which has this incredible speed
00:09:59 and this incredible computation power driven by SAP
HANA. This is the new screens we need
to build.
00:10:08 This is the user experience that customers want to have
in the future. This is what SAP
S/4HANA should look like in the future.
00:10:22 And in addition to that, this screen is as simple that
it, from a business context now, can even
run on a mobile.
00:10:32 It is not only the technical enablement of Fiori, it is
the business enablement which we put into
the logic and into the usage of that screen
00:10:41 which makes that screen, in the end,
mobile-enabled.
00:10:48 What I wanted to do with all this, I wanted to show you
how we run a perfect enterprise. We
run it with S/4HANA.
00:10:58 We own all this customer base today because all these
customers are today on premise.
00:11:06 They massively go to the cloud, especially in the
service industry, in the public cloud, but also
into managed cloud.
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15
00:11:14 So that's the reason why we offer the customers the
maximum choice of deployment by
providing S/4HANA on the public cloud, on the managed cloud, and
as well on premise.
00:11:27 Clearly, this new solution, this new code line is built
with cloud qualities for the cloud, and it's
also deployed on premise.
00:11:37 It is integrated to all our cloud offerings. In the
public cloud, like we have the external
qualifications from Fieldglass, the request for proposal in the
Ariba network,
00:11:49 or the Employee Central in SuccessFactors.
00:11:53 In that sense, we provide one solution to our customers
while we still build the core on our core
assets on our NetWeaver platform in a non-disruptive way,
00:12:02 but want to clearly drive our partner extensions to our
HANA Cloud Platform as the platform of
choice for extensions.
00:12:16 Thank you for watching and have a great day.
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16
UNIT 5
00:00:14 Welcome to Unit 5 of the openSAP course, SAP S/4HANA in
a Nutshell. My name is Jens
Krger and I am heading the line of business Finance.
00:00:22 And today I will show you how SAP Simple Finance
creates value for anyone who is working in
a financials department.
00:00:32 So, before I go into the details of SAP Simple Finance,
I want to show how this relates to SAP
S/4HANA.
00:00:39 The SAP HANA platform with its high performance
capabilities of data access and an
integrated transactional analytical capabilities
00:00:50 is the foundation of SAP Simple Finance. Simple Finance
leverages the power of SAP HANA,
00:00:58 and Simple Finance offers a simplified and redundancy
free data model.
00:01:04 So SAP S/4HANA integrates SAP Simple Finance and drives
innovation through simplification.
00:01:12 So lets have a look in what is Simple Finance? So,
Simple Finance can be categorized along
5 core values.
00:01:20 The first one is non-disruptiveness. So with these
non-disruptive innovations we are ensuring a
seamless adoption
00:01:29 and implementation of SAP Simple Finance. Second, we
have a single source of truth
00:01:29 and the single source of truth offers the functionality
that all data is available without the need
of re-conciliation.
00:01:45 We will come to this in a bit. Third, we have
flexibility as one of the core values.
00:01:51 Flexibility is based on the single source of truth, and
enables us to analyze and aggregate
according to the changing business requirements,
00:02:01 and changing perspectives at any time. Based on these
two we have an instant insight as one
of the core values.
00:02:13 The instant insight enables us to explore the financial
data at any point in time and at all levels
of granularity.
00:02:23 All of these functionalities are being consumed in an
intuitive role-based user experience that
adds the fifth core value of Simple Finance.
00:02:34 So now lets have a look at these details and here I
want to go into the details of the non-
disruptive innovation.
00:02:42 But before I show how Simple Finance implements this I
want to emphasize where we come
from.
00:02:50 Lets have a look at the left side, we see the SAP ERP
Financials and in fact the ERP
Financials is real time.
00:03:00 Its based on materialized aggregates. However, they are
static. And thus we cannot change
perspectives
00:03:09 as we have to follow the pre-start definition of the
materialized aggregates.
00:03:15 Then now, with SAP HANA underneath and the power that
comes with this we can look how
Simple Finance implements this.
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17
00:03:24 And here we see, we have a Universal Journal entry -
that with the power of SAP HANA -
enables compatibility views.
00:03:31 And those compatibility views are the reasons for a
seamless integration. Applications run as
before.
00:03:43 Further, SAP Simple Finance provides a full functional
scope of financial solutions and adding
those two together we have innovative applications, build into
SAP Simple Finance.
00:03:56 So we have re-engineered the existing applications and
besides we have new applications,
00:04:03 that together with the re-engineered old ones provide
the users of the system, provide
financials departments with the functionality to optimize their
processes.
00:04:18 For example, we have the period end close or we can
optimize processes by getting rid of
unnecessary re-conciliation steps, leaving financials
departments
00:04:31 to strategic tasks instead of just doing
administration. How can that be done? And that is
based on a simplified data model.
00:04:39 The simplified data model enables flexible insights
into the financials data. Again, I want to
start with an SAP ERP Financials to look at where we come
from.
00:04:50 And here we see the different data silos. For example,
financial accounting and in external
view we have controlling documents;
00:04:58 for an internal view, we have profitability documents,
we have material ledgers. I can go on
and go on.
00:05:04 However, all of those silos need a re-conciliation in
order to get a consistent view on the data.
00:05:12 And therefore, getting instant insights into data
across all silos is not possible.
00:05:22 And therefore, with the power of SAP HANA underneath
the Universal Journal Entry now
enables on-the-fly aggregation and all of this is implemented in
a single source of truth.
00:05:32 The Universal Journal Entries are now the single source
and therefore by design provides a
consistent view on the data and there is no re-conciliation
needed.
00:05:44 Based on this we get the flexibility. Since everything
is aggregated on the fly, we have a single
source that can be analyzed,
00:06:54 aggregated at any point of time and at any granularity
that we want to look into.
00:06:01 So lets make it tangible. Lets have a look at the
period end close and exemplify what does it
mean for your business.
00:06:10 Again, on the left side we have the traditional close
and it consists of the lot of steps.
00:06:16 And those are executed in batched fashion since theyre
just running too long. And with the
SAP HANA platform we are now able to reduce it.
00:06:26 Lets have a look at how this is traditionally done.
There are a lot of steps, and those steps
have to be executed sequentially.
00:06:36 And they can only be executed at the end of the period.
So thus in the period we have a limited
insight at the actual data. So, now lets have a look how SAP
Simple Finance does this.
00:06:48 And here we see that within the period were now able to
get instant insight into our data as
several steps can now be executed within the period and as there
are no batch jobs anymore.
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18
00:07:03 They can be executed in real time and there is no
re-conciliation needed, therefore we enable
with Simple Finance the financials departments to get insights
into the data earlier than before.
00:07:17 Further, this is improved performance of the specific
steps, we now can reduce the close and
consolidation time overall.
00:07:28 What does it mean in exact numbers? So, at SAP we have
implemented SAP Simple Finance
in our productive system, and measured the numbers.
00:07:38 For example, the processing time at the quarter end
close could be reduced by 420 hours.
00:07:47 At the same time we could reduce the intercompany
reconciliation issues by 70%. It sums up
of 22% of closing efforts elimination.
00:08:00 And that leaves financials departments to spend more
time on strategic rather than
administrative tasks.
00:08:10 Further, we integrated a new user experience. And here
we see more details on this.
00:08:16 So, we have enriched classical transactional
applications with analytical capabilities and we
have seen this user experience along those processes.
00:08:25 And we have designed a coherent, role-based, simple,
and delightful user interface that is
exemplified on the right side with our new dashboard.
00:08:33 This act as an entry point for Simple Finance adding
analytical capabilities to start off.
00:08:41 Let us now have a look at how all of those benefits
come together in our P&L insights
application.
00:08:49 With this application we are capable of looking at
P&L data overtime and focus on significant
events.
00:08:57 And thats an example how instant insight, single source
of truth, flexibility and a new user
experience come together.
00:09:06 So, here we see the application. Lets start with
picking a date range. I just type in, last 8, and
the system automatically provides me with options. Last 8
quarters is what I want.
00:09:17 Next, I want to look into China. And I type in China,
choose China.
00:09:24 And once I have chosen China and hit enter, the system
provided me with an P&L on the left
side in an hierarchical mode.
00:09:34 I want to now drill down into Revenue, as I am
interested in looking into software revenue.
00:09:39 So I just drag the note into the charting area and here
I see now our software revenue over
time.
00:09:50 And its accumulated and its a financial system, it
drops to zero at January and starts again.
00:09:58 I can also have a look at Non-accumulated view as its
based on line items. And here we can
see that at every quarter end we have a huge increase in
revenue.
00:10:10 But lets go back to Accumulated view, since I want to
show you how we can compare years
over years and here we see that 2013 was way better than
2014.
00:10:23 And now we want to deep dive and look into the data,
explore the data, and try to find out was
the reason for this.
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19
00:10:33 So first, I want to see a change in Q2 2014, so I want
to have a look into what happened over
there.
00:10:45 And I go back to Continuous mode and want to drill down
into the end of Q2.
00:10:55 So, the system as its based on line items, now provides
me with the finest granularity.
00:11:03 And as we can see its based on line items. We can drill
down into the line items. The line
items are sorted by amount.
00:11:11 And here we see that, for example, in our example a
large deal with the Baba group came in at
the end of the quarter of 2014.
00:11:21 And that is the reason how we can explain the
spike.
00:11:24 So, go back to ... Lets zoom out again to have the full
picture since we want to still explain why
in 2014 our revenue did not meet our expectations.
00:11:38 Therefore, we also want to look into costs, as
sometimes there are traveler restrictions in place
and therefore we go into the cost part of our P&L
statement.
00:11:50 And just look at travel costs. So, we take the travel
costs, put in our chart area and as travel
costs are costs, we have to negate them in order to let us
compare those.
00:12:04 So lets for the sake of getting more visibility, more
insight, make the revenue invisible, and do
a year-over-year comparison of our travel costs.
00:12:16 And here as we do the mouse over, we can see that in
2014 we even had more costs on
travel. So this cannot be the reason for our revenue issue.
00:12:29 So lets close travel costs and lets have a look at the
software revenue again. And here I want
to now drill down and use filters.
00:12:40 And as we can see here the filters give us the option
of all of the dimensions that we have in
the system.
00:12:47 And we have HANA software licenses, we have NetWeaver,
for example, we have Sybase,
and I want to use the split feature,
00:12:53 that is now enabling us to have a dedicated chart line
for all of those products.
00:13:03 And here we clearly can see, that there was a change
over the years. As we can look in 2014
everything went equally.
00:13:14 And in 2014 starting with Q3, there was a change.
00:13:19 And we see that the HANA revenue took off and the rest
of the revenue did not, for the
products and NetWeaver and Sybase in this example.
00:13:31 With this I could show that we have an application that
follows the natural train of thoughts
00:13:39 and enables us to really deep dive into the data and
get the insights that we could not achieve
before.
00:13:50 So, with this lets wrap-up the course by summarizing
what we just learned.
00:13:58 And as we see SAP HANA lies at the core of SAP Simple
Finance and it enables a simplified
data model.
00:14:06 And also SAP HANA with its integrated transactional and
analytical process and capabilities
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20
enables simplified and accelerated processes.
00:14:16 Those are consumed with an intuitive user experience.
And at the same time Simple Finance
implements a non-disruptive path to innovation
00:14:28 and Simple Finance can be deployed in all deployment
options that SAP S/4HANA offers
namely the public cloud, managed cloud and on premise.
00:14:39 With this I would like to end this session and say
thank you for your attention.
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21
UNIT 6
00:00:12 Welcome to Unit 6 of the openSAP course SAP S/4HANA in
a Nutshell. My name is Rudolf
Hois and in the last two, three years I've been part of the
Suite on HANA program and now
lately in the S/4HANA program.
00:00:24 And in that work I have been working with quite a
number of customers talking with them about
how they would go about adopting Suite on HANA in the first
place and now S/4HANA.
00:00:34 And by that I'm hopefully able to give you an
impression of how a migration into S/4HANA will
really work for you and what it means to go there.
00:00:42 So what are the key elements that you will have to
cover during this roadmap.
00:00:48 Now we have announced S/4HANA as the next big thing:
The new ERP for corporations,
which is really an alternative product to the ERP.
00:01:00 Now that already sounds a little bit as if there is a
complicated way to go there and, to even
stress that fact, we also talked about a changing data model and
so forth,
00:01:10 which immediately resonates in terms of: What does that
mean for my landscape? How can I
actually migrate there? Is it something that is reachable or is
it not?
00:01:18 Because we know that the more complicated it is to
reach an innovation, the less fast adoption
can happen.
00:01:25 So we at SAP have an urge to provide a meaningful
migration experience into this world, and
this is also what we have focused on.
00:01:34 And this what I will now try to show in this
presentation that we actually managed the way that
this move to S/4HANA is a very feasible step.
00:01:43 So, we talked about simplified data model and, if you
look at the data model today, it contains
first of all the actual transactions or master data and
configuration data,
00:01:54 but then it also includes quite an amount of helping
information like aggregates and indices. So
these tables, they never contained any semantic value.
00:02:05 They have always been just, if you wish, a means of
performance because you wanted to get
to summations, you wanted to get to a list of information in a
fast manner.
00:02:14 And in the traditional world, the only way of achieving
that was by these aggregates and
indices tables.
00:02:20 Now what we have done is we've got rid of these, and by
that we've thrown away two thirds of
the data, which reduces the footprint.
00:02:26 But then the question is what does that mean to your
customer code? Now, by throwing away
this data we have done also one thing,
00:02:33 because some of those fields in the aggregates they
obviously contained some semantics, or it
was not like a 100% statement before, but let's say a 99%
statement.
00:02:41 So those elements we moved over and found another place
for them so we've not lost any
semantic, we've not lost any information in the system but
obviously for the code this will have
an impact.
00:02:54 Now, if we think about how you would write a code
against the new data model, that seems
like a lot of work, but fortunately we've done a nice invention
here.
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22
00:03:02 Our NetWeaver colleagues came up with a great idea
where they have introduced something
which we call equally named views or compatibility views.
00:03:11 Now, the name already indicates that they should be a
placement to the aggregates and
indices, which they are, and it works as follows:
00:03:17 So these views, they have the very same name as the
traditional aggregate table and they
also contains the very same fields as the traditional aggregate
table.
00:03:27 Now what's happening: If a code reads and would
traditionally read from the database, it will
access actually the view
00:03:34 and, by accessing the view, the very same information
is calculated on the fly and brought
back to the code.
00:03:40 So for the code it's actually transparent whether the
information is read directly from my
database or on the fly aggregated
00:03:40 because in essence the flow of the program is not
impacted by the way this is done.
00:03:51 Now then there is a small caveat to it because
sometimes such calculation would now happen
in a loop where the code was not done well.
00:03:57 You know, sometimes there is a loop where you access
the same information a thousand
times, and then obviously you're reading a thousand times.
00:04:04 Well, that's just via the buffer, that's not so
important. But if you calculate a thousand times,
then obviously this is not as good.
00:04:12 So you would rather change this very technically where
you calculate it outside of the loop and
then bring the result as a reference into the loops.
00:04:18 So these kinds of small technical exercises in few very
exceptional cases are required. But
else the code that does the reading access to these aggregates
can stay unchanged and will
still work.
00:04:29 That is really actually great because this is the
majority of database accesses that you do.
00:04:33 And then there are few instances where you may update
or insert something in the very same
tables and, yes, that is also no longer required.
00:04:41 So these are things that you would omit and, with these
measurements, you can actually bring
along code into this new world to work on top of this new data
model.
00:04:51 Now actually, how does the new data model arrive in
your system? And you know, if you are
on Enhancement Package 7, maybe already a Suite on HANA
customer,
00:04:58 then obviously you would not want to undergo again a
complete new Enhancement Package
upgrade or whatever big-time technical project to go there.
00:05:07 And this is why we came actually up with a way of
talking about an exchange add-on. So what
is an exchange add-on?
00:05:14 The idea is that you can bring in that Simple Finance,
which we started with, actually into an
existing Enhancement Package 7 system, and then without re-doing
everything.
00:05:26 So you can maybe have a picture of, well, a lot of the
Enhancement Package 7 layer, which is
depicted yellow here, will really stay equalish. You bring in
just an exchange for the Financial
pieces.
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23
00:05:38 And this kind of a mini Enhancement Package or a mini
Service Package, if you wish, for just
that piece of code that is even getting improved.
00:05:46 So by that we really can contain very much the effect
of moving a system to Simple Finance or
S/4 as the simplifications are coming along with it.
00:05:58 And with these two measurements, we really found an
experience of how migrations at
customers can really move.
00:06:04 And now, the next slide will actually talk a little bit
about these phases and I will try to make a
little bit lively, hopefully,
00:06:11 what our customers are experiencing that have started
with us on this journey, on this
roadmap, and where they're standing.
00:06:17 So if you start today, maybe on a traditional database
and a release before, obviously to move
into that direction you will have to move up. Right?
00:06:17 We can only bring this kind of innovation on the latest
release, which by now is Enhancement
Package 7 for the ERP.
00:06:32 And an Enhancement Package upgrade or even a release
change if you come from 46c or
other older releases, these are steps that they very well know.
Right?
00:06:40 Most likely you immediately have an idea of what that
project would look like and what that
would cost.
00:06:45 Going to Suite on HANA actually includes a database
migration into this step.
00:06:50 Database migration in itself - most of you have done in
the one or the other case. So also there
you will have a feeling of what the effect is.
00:06:57 And actually what our customers are experiencing is
that those things they don't add to each
other in terms of length; most are doing that in parallel.
00:07:05 And by that, the actual time of this project is in the
majority driven by the Enhancement
Package timelines.
00:07:13 So what we have seen is that 75% of all the customers
that move to Suite on HANA finished
this project within 6 months, with the fastest of those being
even just under a month.
00:07:23 That was a very small system, not modified. So
obviously, it's always the simple cases that
start with that.
00:07:28 But what that tells you is that actually the
Enhancement Package upgrade or the release
change are driving that effort.
00:07:33 Now why is that the case? It is because the database
migration as a project has two main
pieces that we have to cover.
00:07:42 One is testing, again, so if you exchange a database,
you really want to make sure that it is
running again.
00:07:48 But testing is also a piece of the Enhancement Package
upgrade so that's not add it, that is
just something that you had done anyway.
00:07:54 And then there is overall this task of minimizing the
downtime in the upgrade window that you
have,
00:07:59 which is obviously something that in the database
migration is much longer than for the
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24
Enhancement Package.
00:08:03 So this is really the additional thing that you need to
cover in this process but it's not that you
have to do it afterwards or something.
00:08:12 So you can do that quite a bit in parallel and also,
what we have done is we have improved the
software update manager to include the database migration option
such that it's combined.
00:08:23 And also, we have introduced some near-zero downtime
capabilities in there, where you have
some uptime elements, where big tables are getting moved and so
on, which actually shrinks
the effort in there as well.
00:08:33 So I don't want to dwarf it: It's enough work and you
better make sure and test it and so that it
really works but it's a very feasible process that our customers
are doing.
00:08:41 And then you bring in the simplification, and I talked
about the exchange add-on being one
element of that. And there, one piece of information: SAP has
actually gone this route with
these two steps.
00:08:50 That very second step took us 55 days of work, right.
So elapse time of 55 days where we
introduced Simple Finance into a Suite on HANA system,
00:09:00 which again tells you that this idea of the
compatibility views really works and that you have a
way of migrating.
00:09:07 Now we did this as two steps. Those can be combined so
you are not forced to do that in
sequence.
00:09:12 It's actually a choice as a customer which of these
steps you would either do in a sequence or
combined. I think that's also very much subject to your overall
landscape planning.
00:09:23 You have upgrade windows, you have existing plans so
it's not like it's just the one that is
supported while it may make sense to just introduce the database
migration along with an
anyway planned upgrade.
00:09:33 The move to simplification maybe changes the way you
would lay out the project completely.
00:09:38 So in that sense you really have a way to play but both
of those steps are actually very
feasible,
00:09:45 and also it's good - or not good, it's okay to do them
separately because the efforts build up on
each other.
00:09:52 So it's not like you would re-do a lot of things that
you've done in the first step or so on. So they
really neatly fit to each other.
00:09:58 And then we also said S/4HANA will be available in the
cloud, so we have this notion of the
managed cloud and the public cloud.
00:10:05 And there we are also building an upgrade experience
which, if you think about it, it will
depend on what actually your strategies are.
00:10:13 But most likely not necessarily a full system move into
the cloud but maybe rather a carve-out
scenario for that scope that is meaningful in the cloud,
00:10:22 because the discussion of whether something is in the
cloud or is on-premise is not only a S/4
discussion because it actually depends on the way that you want
to have control over a
system.
00:10:32 In the cloud, you very much adhere to standards; on
premise you can be very specific. You
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25
may have other ideas of how to modify this system or extend it
to your very needs.
00:10:42 But anyway, there are many reasons and arguments that
you would balance, and then we are
coming up with tools that provide the capability of taking a
part of your system into the cloud.
00:10:42 And then we will also invest, and this is why you see
the SAP Labs Preview here, we will
invest in this kind of scenarios that then take the data into
the cloud system.
00:11:01 And again, if you have been on any of the status, we
can take the data even from non-S/4
systems and then bring those things to the cloud.
00:11:11 So, it is not necessarily a sequence of things that you
would follow through if you go to the
cloud, but it's kind of the distinct steps that are
different.
00:11:20 This is why the depiction is this way, but you could
also go to the cloud directly from a non-
HANA system.
00:11:27 Now, we also talk about that we bring a lot of Fiori, a
new user experience, into the system,
which in turn also has an impact, obviously, to the rollout of
such a product.
00:11:38 Now you have to understand that there is a clear
distinction between traditional SAPGUI-
based projects or projects that we are doing with Fiori.
00:11:47 Because these Fioris are very specific. So they have
changed in terms of no longer serving
each purpose across all industries globally for all rows.
00:11:55 They are very specific to the need of individual users
so they are actually, and I don't want to
stress the term, self-explanatory but it's going in that
direction
00:12:04 because the complexity is of the interaction a human
has with the system and not of all
potential interactions and by that, adopting Fiori is actually a
different type of training
requirement as you traditionally have.
00:12:17 And with that, you really are then enabled for your own
digital transformation by having really
achieved that your system is in in-memory,
00:12:27 is reduced in the data footprint, and then you can
really start to evolve into the future and in-
memory world of business processes.
00:12:37 And with that, I would thank you for listening. I hope
it was interesting to you and it showed you
that actually we really are taking the migration experience
seriously.
00:12:47 We really give you an experience that you can come
along with us on this journey of great
innovation. Thank you so much.
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26
UNIT 7
00:00:12 Welcome to Unit 7 of this openSAP course. My name is
Steffen von Berg, I'm Vice President
and Head of the Customer Engagement in the Cloud.
00:00:25 So, what I want to talk about today is how customers
can go easily into the cloud, how that
journey might look like.
00:00:36 And what I want to start with is a little bit about the
customer situation itself.
00:00:43 So, many of our customers, they built up complex
landscapes in the past. And this is
something which was not only driven by SAP,
00:00:53 it was driven by all of the software vendors. And now
they have these huge and complex
landscapes.
00:01:01 And the burden they have now is that these landscapes,
they need to be operated and that
means, they need a lot of resources to do that.
00:01:10 And resources does not only mean financial, it also
means people. And getting experienced
people in the IT business is something which is not easy.
00:01:23 So, and now, there are requirements from these
companies to the IT department to help the IT
department to innovate
00:01:34 because IT departments, they need to provide new
solutions for new business ideas. And this
is something where a lot of companies struggle today.
00:01:45 They are not able to move fast enough because they need
to operate their huge landscapes.
00:01:52 And then to change the huge landscape, this is like
driving a supertanker, so a big ship, a
steamer. And that is something which is not easy to do.
00:02:07 So the question is, how can we help with the S/4HANA to
innovate?
00:02:16 How can we provide to customers' innovation and an easy
way to do so. And I want to show
you what we can do.
00:02:27 And there are, in general, two aspects. One aspect is
customers want to go to the cloud. And
this is what is actually already done within SAP, within our
HANA environment.
00:02:39 So what we have there, we have more than 210 customers
who already put their entire
business into the HANA Enterprise Cloud.
00:02:57 So and it's already driven under the HANA perspective,
a lot of innovation is built in already.
And these customers can already focus on innovation
00:03:07 because with their highly skilled resources they are
not forced to operate their solution
anymore,
00:03:15 they can think about new ideas and new innovation for
their company to help them.
00:03:24 A very good example is Nissha. Nissha is a Japanese
customer who is focused on producing
touchpads and printing.
00:03:34 This customer needs to work in entire new businesses
and he needs to focus on the
innovation topic massively.
00:03:44 So what he did, he put his entire landscape into the
SAP Cloud under the HANA platform.
00:03:55 And that was extremely successful. So within three
months, this entire project was done, and
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27
we have massively improved performance
00:04:07 for all of their reporting aspects and for their
overnight batch processing which is a very, very
vital part of their operating business.
00:04:20 Improving that means that these customers can think
about new things. And we have some
other examples here, like McLaren, like the German football,
Schaidt Innovations and some
others.
00:04:34 So these customers already realized that they need
their resources for innovation topics, and
that's what they were going to do with us.
00:04:45 And now let's come to an example of how a customer can
do that. When we start on the left-
hand side and, this is what I said before,
00:04:57 this customer has a huge ERP landscape on any DB, let's
say. So the question is, how can
that customer move forward?
00:05:07 Let's say he has a new idea. He wants to sell some new
shoes. And that means, because he
did not do that before;
00:05:18 he sold, I don't know, clothes or things like that. And
now he starts selling shoes because he
has a really good idea.
00:05:27 This is a good idea and he needs to have a system for
that. Doing that in his old landscape
means he cannot move fast enough.
00:05:37 Now the question is, what can we do? And this is very,
very easy. So, this customer can take
from our side an S/4HANA solution in the cloud, in a start
environment as a first step.
00:05:55 So there he can start a project which will only take a
few weeks. The easy thing is that in the
future, and here we have a lab, an SAP lab preview,
00:06:10 he can migrate the data he really needs, and that means
the business data and the master
data, into that new system and only the data he needs for that
new business.
00:06:23 And on top of this, he can get predefined processes for
certain lines of business or for a
specific industry
00:06:33 already from us combined with some services to build
that up in an entirely new system.
00:06:39 So, there are no resources necessary because it runs in
the cloud. We will operate it from our
point of view and this is a very, very easy way to go.
00:06:56 On top of this, many of our partners have additional
good ideas. So, when we talk about
Internet of Things and things like that
00:07:04 and you need to connect that with an S/4HANA, this can
be done easily on our cloud platform.
00:07:12 So, the Cloud Start is a very, very easy way to start
new businesses and to move forward to
the cloud and to make things easier.
00:07:24 When the project is finished, then the customer has
still two options. He can take it back in his
on-premise environment.
00:07:39 So if he wants to keep this because it's so secret or
he wants to modify it or whatsoever, he
can take it in his on-premise world and then move from there
even faster.
00:07:54 Or, and this is I think a new way which is extremely
interesting, he can use the production
cloud environment within SAP and can operate his S/4HANA
completely in the cloud.
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28
00:08:09 And this will be done by SAP then. And he can focus on
the next innovation topic he wants to
drive.
00:08:16 So, the interesting thing is that we from SAP will come
up with that innovation push. So all
three months, all six weeks, we will build in new
innovations.
00:08:33 So the push will be there. And what we innovate,
because we have good ideas also, and what
we innovate is then there. And there's nothing to do
anymore.
00:08:44 And you just can make use of it. So, a new business is
not only then a new business, it stays
an innovative business and that makes it extremely interesting
in the cloud.
00:08:58 So to summarize that, with our Cloud Start environment
you have a very fast availability
without risks. So you can drive a project within just a few
months or days.
00:09:16 The migration of an existing solution to the new
environment can be done easily.
00:09:20 And by the way, it's not only a carve-out of your
environment, of your existing environment
which can be done.
00:09:29 You can bring your entire master data and business data
into such a solution and start from
scratch because that is something many of our customers are
thinking about.
00:09:40 They want to simplify. They want to use standards, and
we provide these standards within the
S/4HANA solution.
00:09:50 And then they can leverage all the innovations which
come from our side.
00:09:57 Very nice: There is no HANA knowledge necessary up from
the beginning for our customers.
Many of our customers need to have their resources thinking on
innovation.
00:10:09 Yes, you need to understand a little bit about HANA,
even in the cloud, because you need to
understand that from a business point of view,
00:10:17 not so much from a technical point of view and not so
much from an operations point of view
because we will do that in the cloud.
00:10:26 And this is a very, very easy way in my opinion. So,
you can experience all the benefits we
have already built in in S/4HANA,
00:10:37 like you saw that in the previous openSAP courses, like
the Simple Finance and all the other
benefits which come along with S/4HANA.
00:10:49 And you can use the Cloud Start as a project platform
and decide later upon on premise or
managed private cloud.
00:11:01 So, thanks for your attention, and I hope this explains
a little bit how you can move easily to
the cloud.
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29
UNIT 8
00:00:12 Hello and welcome to today's last unit of this openSAP
course SAP S/4HANA fueling the
Digital Transformation.
00:00:21 My name is Sven Denecken and I am SAP's Global Vice
President for SAP S/4HANA.
00:00:27 Next to strategy I am focusing on the co-innovation
engagements with strategic key clients and
partners -
00:00:34 a valuable source of sensing the trends, validating
what we do and influence what we need to
do.
00:00:41 Now, let's start with the unit. The purpose of this
presentation is to provide you with a
comprehensive overview on the business
00:00:51 and IT value of SAP S/4HANA, our next-generation
Business Suite, and how customers,
partners, and influencers can co-innovate with us.
00:01:03 I also hope this final session makes some appetite for
the deep-dive course which will be
coming soon.
00:01:11 But let's start with the fundamental question at hand:
Why SAP S/4HANA?
00:01:19 SAP S/4HANA is fueling the digital transformation based
on radical simplification, which is
needed to drive business outcome.
00:01:30 Companies need to reduce complexity to free up
resources for innovation. But in order to
tackle this complexity, we had to first find it.
00:01:41 So, let's look at where complexity typically lies in
organizations today. It starts with scattered
information and data duplication
00:01:52 that create different versions of the truth,
complicating decisions and making it difficult for
enterprises to bring good ideas to market quickly and
profitably.
00:02:04 It then moves on to business processes that have been
historically built around long-running
batch processes and designed, as workarounds for missing
performance are needed.
00:02:17 In fact, according to experts, organizations can spend
between 40 and 80% of their time on
non-value-added activities sucking up time and energy from
solving real business problems.
00:02:34 And finally, technology, where data explosion has shown
the limits of current technology to not
only run the day-to-day business
00:02:45 but also innovate, for example, the problem of separate
systems for transactions and analysis.
They create more data latency.
00:02:56 If not mastering, the increasing complexity can create
costly complications. In fact, the
research indicates that businesses lose 10% of profit each year
due to hidden cost and
complexity.
00:03:13 It is clear to see that new technology can and
sometimes is disruptive. This is precisely why we
need to talk about digital transformation.
00:03:24 Driven by the combination of ever-growing digitization
and evolving consumer demands, digital
transformation is the use of new technology to drive significant
business improvements.
00:03:36 This includes capitalizing on new opportunities as well
as effectively transforming existing
businesses.
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30
00:03:45 In this new world, the CIO's focus is fundamentally
changing because the businesses are
changing.
00:03:54 Managing the traditional IT scope is no longer
sufficient. Instead, new priorities need to be
tackled.
00:04:02 For the CIO to stay relevant, he or she needs to
embrace these changes and talk business or
become relegated to a pure non-strategic operations role.
00:04:16 CIOs need to re-think their strategic purpose in the
organization and start a journey to achieve
the strategic purpose.
00:04:26 This strategic purpose has to be well aligned with all
the business stakeholders.
00:04:34 Companies need to achieve digital transformation based
on disruptive technology to gain
higher competitiveness.
00:04:43 And this will need a handshake between line of business
and IT.
00:04:49 Customers today are looking for ways to transform their
business and cater to our digitized,
networked, and complex world.
00:05:00 They need to deliver services rather than products, and
everything needs to happen fast. So
the innovation with speed is key.
00:05:09 But it is not speed only. Customers are looking to
improve their decisions, their processes, and
their products next.
00:05:19 Ultimately, they need to cater towards new business
models. This is where we come in with
simplifying the core of their business, with SAP S/4HANA.
00:05:32 The innovation adoption model will need to transform
from a push model based on static
aggregation,
00:05:41 something someone pre-thought and is never as flexible
as real-time reality does deserve,
00:05:50 towards a pull where, based on the lowest level of data
granularity, you can aggregate on the
fly, which results in the ability to ask the system any question
you have in real time.
00:06:06 So, this ultimately leads to a model where business
models get flexible, where transactional
data and analytical are one,
00:06:17 where external data and unstructured data can be
combined, where connections to the
business networks are a given.
00:06:27 Just think about topics like Industry 4.0 and the
Internet of Services and Things - without a
simplified, open and real-time core: very hard to achieve.
00:06:41 The renewal of the system of record does build the
basis for the new solutions for end users:
00:06:50 Architected for a true in-memory database with a
simplified data structure,
00:06:58 delivering one function per requirement and processing
a higher amount of data faster than
ever.
00:07:07 This enables to build new kind of solutions which are
really end-user centric, with insight to
action which actually solves problems which were invisible
before,
00:07:17 to concentrate on problems and not on data entries, to
effectively collaborate with colleagues
in a business context,
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31
00:07:27 and to collaborate and work with business partners
outside your company. Let's highlight some
examples.
00:07:36 Let's take Simple Finance, the spearhead of SAP
S/4HANA: More than 65% faster financial
close processes,
00:07:45 more than 50% faster foreign currency revaluation,
1,000x faster reporting (from 15 minutes to
1 second), ultimately transforming how Finance will look like in
the future.
00:07:59 Or let's take Internet of Services where we see three
major categories: Services to improve
business processes,
00:08:08 content that enhances business processes, and
ultimately, content that changes the business
process.
00:08:12 And we, of course, also are working on very important
topics like Simple Logistics,
00:08:24 but let's dive a little bit deeper on that point and
elaborate on some of the concrete examples
from Logistics and Manufacturing that we are working on as we
speak.
00:08:36 Starting with the user experience for sure because that
brings an increased user productivity
through role-based cockpits, which are actually much smarter,
and real-time decision support.
00:08:48 And that decision support helps with proactive
notifications of issues, a pre-evaluation of
solution proposals, including simulation of all proposals before
application.
00:09:03 Then, a KPI-driven process control with intuitive
graphics for faster insights and interventions,
00:09:11 with KPIs that are constantly recalculated and
refreshed on the fly, always up-to-date views on
demand and supply situation across all bill of material
levels.
00:09:23 This leads to real-time execution with one-click
execution of a solution. Process and data
redundancies are eliminated as all aggregates and historical
tables have been dropped.
00:09:37 Complex processes like ATP, backorder processing are
executed directly on the in-memory
database,
00:09:45 thanks to SAP HANA delivering the real business value.
And all of this is available today.
00:09:53 Finally, let us talk about how we come to some of those
innovations: via SAP S/4HANA
customer co-innovation program, which is more a state of mind
than a program itself.
00:10:07 The simplification involves that paradigm shift. So,
what is the motivation? The motivation is
actually, we want business impact-oriented conversations.
00:10:19 Therefore, we need to engage with thought leaders and
business experts and IT -
00:10:24 to achieve the goals fast together, to improve the
overall experience and open the path to fast
innovation adoption.
00:10:33 We need, together, to optimize those business processes
and create best practices, but also
invent new processes.
00:10:41 We need to reduce the cost and risk of onboarding and
adoption while decreasing the efforts.
00:10:49 So what is the value? The value and the benefit for the
customer is very clear: Rapid time-to-
value, a reduced risk, get better services,
00:10:59 influence our strategy, and or course, benefit from
this influence, benefit from the best practice
that comes out of it.
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32
00:11:08 For SAP, we get faster and better customer experience.
We get that meaningful feedback that
we need to make the right decisions as we're going to deliver
every quarter, cloud first but not
cloud only.
00:11:20 We want to better understand and anticipate the
business drivers and, of course, ultimately we
want and we are improving product quality and the business
impact.
00:11:30 That's why we invite you. So let me sum it up. Please
check our homepage sap.com/s4hana
always and frequently for further information.
00:11:45 Make sure that you frequently check the assets in the
course repository for upcoming very
valuable information which we're constantly updating.
00:11:54 And check back for the openSAP S/4HANA Deep Dive course
which actually is coming up
very soon.
00:12:03 Thanks for listening in, and I hope you enjoyed this
course.
-
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