The Digital Core - Innovabee

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The Digital Core

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• What if IT did more than just “keep

the lights on”?

• What if IT was the catalyst for

innovation?

• What if the IT department led the

transition to the digital core?

Part 1: How does SAP S/4HANA Make the Digital Core a Reality?


Simpler data modelImproved user

experience+New business capability

Improved productivity=

How SAP S/4HANA Makes the Digital Core Real

Complete, consistent choice of environment

All improvements and capabilities in SAP

S/4HANA can be explained by at least

one component of this formula

Common themes

• Unification of disparate data sources

• Drill down to detail

• Landscape consolidation


What Does it Mean to Simplify?

An Analogy: Sending a Photograph to Someone Far Away

Camera Film Darkroom Paper Postal Service Recipient Complicated and with enormous

resource expenditure. Individual

components were eventually

sped-up to get the end-to-end

process to one day minimum.

“Camera” Internet RecipientNot merely faster—the

“architecture” is reduced. As a

result, the process happens

instantly and can be done any

time and in different ways for a

fraction of the cost.

Simpler

Data Model


Simpler Data Model: Inventory Management Example

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

Traditional disk-based ERP In-memory ERP

Simpler

Data Model


Technology

• No aggregates or redundant data

• No locking

• Full granularity for all processes

Capability

• Operations in real time

• Elimination of data reconciliation

• More precision

• Basis for simulations and predictions

Simpler Data Model ImpactSimpler

Data Model


A Digital Interface for a Digital World

From the Past… …To the Present

Improved

User Experience


Example: Soft Financial Close Anytime

With SAP S/4HANA

Real-time system with key performance indicators (KPIs)

instantly refreshed

Elimination of end-of-period batch bottlenecks

Continuous intercompany reconciliation

Continuous financial reporting visibility

Profitability analysis and line-item detail reconciliation

Automation for routine tasks

Full management visibility of close tasks

With Traditional System

Close activities that don’t begin until period end

Multiple batch-run dependencies

Batch bottlenecks that delay downstream activities

High error-correction efforts

Complex issues that are postponed until after close

Time-pressured resolutions

Delayed visibility into reporting

New

Capabilities

With Traditional System With SAP S/4HANA

Traditional With SAP S/4HANA

Process Excellence

User

Interaction Ad Hoc

Initial period Close and consolidation

Closebatches

Consolidationbatches

Reporting on demand

Close and consolidationInitial period


Business Challenges

• The client’s facilities run 24/7 including high-volume, small lot size shipping transactions

• Materials are shared across plants and multiple shipments are frequently executed in parallel

• Experiencing instances where PGI failed because the material data (batch stock) was locked:

• Goods movement is posted

• Quantity on hand is updated in aggregation tables

• Delays trying to post goods issue while the truck driver is waiting

Resolution in ECC 6.0

• Repeat attempts to post PGI until there is no lock

• Reschedule background jobs for PGI

• Rethink batch strategy for materials

• Identify SAP Basic changes to reduce number of locks

Resolution in SAP S/4HANA

The Batch Stock tables no longer exist. Only the material movement needs to be created without regard for the

actual stock level.

Transactions can be run in parallel without table locks.

Example: Post Goods Issue (PGI)New

Capabilities

Reduced risk of users

working around the system

No carrier

detention fees

Reduced transaction

processing time


on HANA S/4HANATraditional DB

593 GB

118.6 GB

42.4 GB

Current

8.4 GB

Impact on IT Landscapes

• Reduced storage

• Less replication

• Less network load

• Faster restart after failover

Example with Finance data

Reduced IT ComplexityNew

Capabilities


Landscape Consolidation Example

Sales and Service

Commerce

Customer

Supply Chain

Planning

Execution

Sourcing

Procurement

SRM

BW

SAP HANA Platform

New

Capabilities

Operational

Reporting

Legacy RDBMS

ERP

Use in slide show mode for animation


Discrete Industries Retail

Industry Solutions Consolidation

ERPERP

Discrete Industries Retail

Legacy RDBMS Legacy RDBMS SAP HANA

New

Capabilities


SAP S/4HANA 1709 Update (released September, 2017)Key Innovations

Embedded Transportation Management- Basic Shipping and Data Harmonization- Integration in extended warehouse mgmt.

Consumer Products Industry- Catch Weight Management

Finance- Machine Learning with SAP Cash Application

Procurement- Centralized purchase requisitions- Machine Learning for Contract Consumption

Service Core (CRM Add-On)* -

- Migrate installed base CRM

- Eliminated middleware

- Harmonized data models

Extended Warehouse Management- advanced Labor Management- Pallet Planning

Enterprise Asset Management- Report and Repair Malfunction- Breakdown Analysis

Manufacturing- Demand Driven Manufacturing- Advance Variant Configuration

Quality Management- Manage usage decisions- Analytics for quantitative results

PLM- Visual Enterprise Generator Conversion - Recipe Management and Recipe finder

Manufacturing- Engineering Cockpit- Extension for Complex Assembly Industries

Commodity Management- Extending pricing

Sales- Electronic payments with Payment Hub

Industry to CoreRetail / Wholesale - Wholesale Fashion enablement- Order allocation- Segmentation

* First delivery planned with SAP S/4HANA 1709 FPS01 in 2018

Maximize SAP Fiori Experience- SAP Fiori Overview Pages

Existing & enhanced innovationsNew innovations

Part 2: How Do I Plan for SAP S/4HANA Adoption?


SAP S/4HANA Deployment Strategy OverviewItems marked with * can be started immediately

Prepare users and systems

• Readiness Check*

• Business Value Advisor*

• Prototypes*

Adapt custom code

• Assess custom code inventory*

• Address inefficiencies*

• Adapt code to S/4HANA

Determine the transition path

• Greenfield (new implementation)

• Brownfield (conversion)

• Landscape transformation

Choose deployment destination

• On premise

• Cloud

• Hybrid/multi-tier

https://blogs.sap.com/2017/04/27/start-sap-s4hana-planning-with-readiness-check/

http://s4value.com/

https://blogs.sap.com/2016/12/22/sap-s4hana-1610-fully-activated-appliance-create-your-sap-s4hana-1610-system-in-a-fraction-of-the-usual-setup-time/


Your Personalized Journey to SAP S/4HANAFree, self-service guidance you can get today for IT and the line-of-business

2. Discover Your Destination:

SAP Transformation

Navigator

See the S/4HANA roadmap for

each component in your current

landscape. (link)

Based on current SAP product usage or

capabilities your organization wants.

3. Plan Your Move:

SAP Readiness

Check

Learn the technical requirements

and actions for a system

conversion to S/4HANA. (link)

Based on configuration and usage data for

customers already on SAP ECC 6.x.

1. Build Your Business Case:

S/4HANA Business Scenario

Recommendations

Identify the business processes

you can improve and discover new

business capabilities. (link)

Customers new to SAP can use

Business Value Advisor. (link)

https://go.support.sap.com/transformationnavigator/#/welcome

https://help.sap.com/viewer/p/SAP_READINESS_CHECK

https://www.s4hana.com/

http://s4value.com/


SAP S/4HANA Adoption Paths

New

Implementation

System

Conversion

Landscape

Transformation

EXAMPLE:

New or existing SAP Customer

implementing a new SAP S/4HANA

system with initial data load

EXAMPLE:

Complete conversion of an existing

SAP Business Suite system or selective

EXAMPLE:

Central Finance

On-Premise

S/4HANA Cloud

On-Premise

On-Premise

S/4HANA Cloud

ERP System

ERP SystemRegion A

ERP SystemRegion B

ERP SystemRegion C

SAP S/4HANA

Non-SAP

ERP System


SAP S/4HANA: Complete, Consistent Choice

On PremiseCloud

SAP S/4HANA

One Code Line

SAP S/4HANA’s code line, simplified data model, and modern user experience are consistent for both cloud and on premise. Designed for in-memory, SAP S/4HANA brings new business capability while simplifying the IT landscape.

Considerations for selecting the right SAP S/4HANA solution:

Business functionality

Regulatory, industry, and regional requirements

Individualization options

IT Strategy

Innovation cycles

Adoption/upgrade efforts

TCO

Commercial models


The Right Solution for Each Customer Situation

Cloud ERP

Configurable standardized processes and best practices for finance, procurement, HR, and sales

In-depth support for professional services and component manufacturing with more industries on roadmap

Extensibility with PaaS

Public cloud infrastructure

Quarterly release cycle

Lowest TCO

Fastest time to value

Subscription licensing

All private editions run onSAP HANA Enterprise Cloud

Customizable packages and bundles

All industries supported

Extensibility with PaaS

SAP-managed services on private cloud infrastructure (SAP, AWS, Microsoft Azure, Google Cloud Platform)

Annual release cycle, speed of adoption depending on configuration

Low deployment/maintenance/upgrade efforts vs on-premise ERP

Subscription licensing

On-premise functional scope

All industries supported

Customize, modify, and extend

Customer infrastructure or IaaS

Annual release cycle, speed of adoption depending on configuration and custom modifications

Best-in-class deployment/upgrade efforts for on-premise ERP

Perpetual licensing

SAP S/4HANA CloudSAP S/4HANA Cloud,

private editionsSAP S/4HANA

SaaS solution Private cloudOn-premise capabilities managed by customers


What Happens to My Customizations

with the Simplified Data Model?

Backward compatibility

• Core Data Services

• SAP GUI

Leveraging new capability

• Simplification DB

• Key User Extensibility

Easing the Transition

Fiori Shell

SAP S/4HANA

ABAP

HANA

Suite Tables

Transactional Logic Analytic Engine (Enterprise-)Search

Fiori Apps,

ALV (U15)

Design Studio

Analysis AppSearch

Gateway

R R R

R R R

R R

OData InA InA

Core Data Services View


Major Milestones in SAP S/4HANA Adoption

New Install

Migrate Existing

PREPARE EXPLORE REALIZE / DEPLOY

All Implementation

Scenarios

Dependent on

Implementation

Scenarios

Implement

additional industry

/ LOB packages

Value Discovery

Workshop

System Conversion

Technology driven migration offering

Landscape Transformation

Business driven migration offerings

New Implementation

S/4HANA on premise and cloud

Implement new

Innovations

Installation and data

transition for SAP

Leverage SAP Digital Business Services or Partner Ecosystem

Strategy &

Roadmap

Technical

Architecture

& Migration

Planning

How Can I Learn More?www.sap.com/s4next

http://www.sap.com/s4next

Thank you.

Contact information:

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The Digital Core - Innovabee

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