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Road map for SAP S/4HANA:

SAP cloud platform as a tactical building block.

Tobias Hust, Head of Architecture & Design, Enterprise Applications, Linde Information Services, Linde Gas

Prague, 18th of October 2018

2

The Linde Group – Key facts.

Represented

in 100countries

worldwide

Operating

Profit 2017

4,213

More than

600affiliated

companies

worldwide

End 2016

59,715employees

2Business

Areas

Revenue 2017

(EUR m)

17,113

International SAP Conference for Chemicals - Prague, Czech Republic, 18.10.2018 – Tobias Hust, The Linde Group

3

2 Business Areas.

Linde Gas

HealthCare

Industrial Gases

Linde Engineering

Leading technology partner for

plant engineering & construction

Million EUR


4

Linde is run in three operational clusters by COOs.

Regional business focus & past mergers drove diversified ERP landscape

– 24 different ERP-systems across all clusters

– High percentage of Linde Gas revenue managed

by only 4 SAP ECC ERP systems

– Few truly global peripheral systems serving the

SAP ECC systems – such as global eChannel, SAP

SRM, or Salesforce.com CRM, HR/HCM

– Many SAP ECC specific system dedicated

peripheral local systems

– SAP ECC instances database size around single

digit Terabytes max, ~25.000 SAP Users

– Note: Primary hosting site global data center

near Munich

Some Key Facts

AMERICAS

2 SAP ECC 6.0

1 Non-SAP ERP

EMEA

3 SAP ECC 6.0

13 Non-SAP ERP

APAC

2 SAP ECC 6.0

3 Non-SAP ERP

~ 10 Global Peripheral Systems

MANY local

Systems

MANY local

SystemsMANY local

Systems


5

Setting the Scene – S/4HANA Considerations.

Status quo


The nature of gas product distribution demands short supply chain distances for both packaged gas and bulk

deliveries

P&L on country level, certain levels of operating autonomy expected

Continuous efficiency optimizations / cost reduction, maximization of taken investments, carefully

weighting benefits of new investments

Therefore – our precursor is a ECC 6.0 conversion to S/4HANA as ‘brownfield’ and not ‘greenfield’

6

Scheme of a SAP ECC 6.0 to S/4HANA Brownfield Transformation.

Keep, Replace, Converge, Embrace New and modernize over Time

SAP ECC 6.0

System(s)

SAP S/4HANA

System(s)

Today

Peripheral

Systems

New

peripheral

Systems

Retained

peripheral

Systems

CONVERGE AND REPLACE

PARTS of ECC

KEEP

Stable core

Flexible or even

agile periphery

Stable retained

periphery

Tomorrow

… transformation …

EMBRACE NEW

SAP Cloud platform

is key contributor

Inflexibly

distributed

capabilities

Flexibly

distributed

capabilities for

the digital age


7

SAP Cloud Platform (SCP) as Tactical Building Block.

Transformation support throughout the journey

SAP S/4HANA

System(s)

SAP Cloud

Platform

1. Fiori based Mobilization

SAP ECC 6.0

Systems(s)

2. Multi-Purpose Cloud HANA based Applications

3. SAP® Services / Solutions on SCP

– Mobilize existing ECC functionality via Fiori

technology

– Extend Fiori Client to manage mobile device

features and capabilities

– Take advantage of HANA in the cloud

– Develop custom applications – APIs or Web or

Mobile Apps

– Leverage custom applications with machine

learning, Blockchain, and other available PaaS

– Subscribe to and integrate SAP ‘vertical’

solutions and 3rd party solutions

– Subscribe to practical services that evolve –

security, address correction, VAT calculation, VAT

online government reporting (Hungary),

Integration Services, IoT …

#1: Integration Stability

Integrations remain stable from

day 1 when converging to S/4 later

#2: Mobilization of existing ECC functionality

SCP allows for very quick and cost effective mobilization

of existing ECC functionality via custom Fiori today

#3: HANA for competitive advantage

During transformation, capabilities that are either

supporting the competitive advantage or no commercial

off the shelf available, HANA Apps seamlessly integrate

in the Fiori app portfolio of the SCP

#4: Leverage SCP Cloud Services and Apps

Transparently add SAP® verticals and services to the

SCP application portfolio, seamlessly rendered to the

enterprises audience via Fiori technology

Linde Success Story next slides


Transformation

journey 5+ years

Linde deploys HU VAT Service on SCP

Cylinder Tracking with Blockchain

currently scoped and assessed

SCP supports

journey from day 1replace

8

Solution – Replacement of mobile solution with minimum change impact to ERP functionality

– 3 different solution scenarios were compared

– SAP Cloud Platform (SCP) with Fiori Mobile Technology chosen (key driver – cost effective mobilization of stable SAP ERP core processes,

reduced risks by reduced change, timeline)

Setting the scene

– Linde North America – Electronics Business

– 300.000 cylinders managed by 150 end user

– Linde exclusive worldwide distribution

– Revenue fiscal year 2017: 309 Mio USD

SAP Cloud Platform Success Story.

Replacing an end-of-life solution with Fiori

Problem Statement

– Mobile solution originated in 2002

– Architecture and Devices end-of-life – no reasonable modernization

path except replacement

– Business continuity issues worth 85k USD due to defect scanners

and system downtime in 2017


9

Linde Electronics Premium Products Mobile App.

Solution Overview

1. COGNEX MX-

1000

Scanner Cradle

with battery

~50 Users

2. Standard iOS Device

Snapped-in or in

Camera mode without

cradle ~ 100 Users

Fiori Application

Order Details Example

Scanning Device

iPhone 6s with Fiori Client

App from Linde SCP store

SAP Cloud Platform

Waldorf, Germany

Linde Internet Access / GSM

Linde Data Center

Munich

Secure Connectivity

SAP / Linde

ERP System

Two use cases – one mobile app… … in a single SAP solution space


10

Impressions from the Shop Floor.Linde Gas, Bridgewater, New Jersey, USA

Pictures curtesy Walther Gotham, Business Process Owner:

”Usability of Fiori on a standard iOS device is a tremendous improvement which will result in efficiency gains”

11

Linde Cloud Platform Portfolio.

SCP complementing Salesforce.com and Microsoft Azure, run as DevOps lifecycle process


Deploy

Test

Build

Service Manager

Incident/Enhancement

Project

TOSCA TEST SUITE

SCP DEV

SCP QA

SCP PRE-PROD

SCP PROD

SCP DevOps Tools and Process-Automation Illustration

Linde Cloud Platform Portfolio

• Salesforce.com & Force.com – subscription based customer

engagements

• Microsoft Azure – multipurpose non-subscription, pay-by-

use based engagements

• SAP Cloud Platform – value chain engagements

Linde deploys DevOps principles in the platform

lifecycle processes with one integrated toolset

Allowing for 4-weekly major and weekly minor

releases, addressing the Gartner® ‘Bi-Modal’

operating model or ‘two-speed-IT’ challenge

12

Summary.

Take away

1. Clients will either drive a Business or a Technology Transformation given the current feature and capability set of S/4HANA

resulting typically in a Greenfield or Brownfield approach

2. SAP Cloud Platform can take the role as a tactical building block in the Technology Transformation

1. The Integration approach between ECC and S/4 saves the investments on SCP in general

2. Very quick and cost effective mobilization of ECC today, investment saved for S/4 HANA

3. HANA powered Apps seamlessly integrate in the custom Fiori app portfolio of the SCP to support competitive advantage

4. Transparently add SAP verticals and services to the SCP application portfolio

Questions?


Thank you for your attention.

The Linde Group

Tobias Hust

Tel +49 89 7446 2831

[email protected]

www.linde.com

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