PUBLIC
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?
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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
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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
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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
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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
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A Digital Interface for a Digital World
From the Past… …To the Present
Improved
User Experience
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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
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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
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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
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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
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Discrete Industries Retail
Industry Solutions Consolidation
ERPERP
Discrete Industries Retail
Legacy RDBMS Legacy RDBMS SAP HANA
New
Capabilities
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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?
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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
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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)
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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
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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
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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
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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
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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
Thank you.
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