Active SAP License Management @ hannover re€¦ · Active SAP License Management @ hannover re ... Hannover Re's business case ... and connects via SAP Support Portal •Business

Active SAP License Management @ hannover re

Dr. Uwe Vehlies ([email protected])

Senior IT Coordinator

ITAM 2017

Copenhagen, 22 June 2017

Agenda

01 – 05 | Key facts about hannover re

06 – 08 | hannover re's SAP CCOE

09 – 10 | SAP licenses at hannover re

11 – 13 | SAP license management at hannover re

14 | Conclusion from procedure at hannover re

Key facts about hannover re

Key facts about hannover re hannover re's SAP CCOE SAP licenses at hannover re SAP lic.mgmt. @ HR Conclusion


1

Total staff of roughly 2,500 employees

Majority shareholder:

50.2% held by Talanx AG*

More than 5,000 insurance clients in about

150 countries

More than 100 subsidiaries, branches and

representative offices worldwide

Today

Foundation by HDI as a subsidiary

Property & Casualty reinsurance

1966

Life & Health reinsurance as

a strategic growth segment

1990

Initial Public Offering

30 Nov 1994

Second Public Offering

18 Feb 2004

* Majority shareholder HDI V.a.G.



From in-house reinsurer to global player

2

>100 subsidiaries, branches/representative offices in ~20 countries

2009: Opening of an office in Shanghai China

2007: Branches and representative offices in Brazil, Colombia, Korea and Shanghai

2006: Hannover Re Takaful B.S.C., Bahrain

2001: Hannover Re (Bermuda) Ltd., Bermuda

2000: Clarendon Insurance Group, USA

1997: Selected portfolios of Skandia International

Insurance Company (locations in France,

Great Britain, Mexico, Sweden, Spain)

1996: E+S Rückversicherung AG, Germany

1996: Hannover Rück SE Malaysian Branch, Malaysia

1992: Hannover Reinsurance (Ireland) Ltd., Ireland

1990: Hamburger Internationale Rückversicherungs-AG

1990: Reassurance Company of Hannover, USA

(today: Hannover Life Reassurance Company of America)

1981: Hollandia-Group; South Africa (today: Hannover Reinsurance Group Africa)

1980: Hannover Rück SE Canadian Branch, Canada

1979: International Insurance Company of Hannover, Great Britain



We are among the top reinsurers in the world

3

For further information please see A.M. Best “Best’s Review” (September 2015)

1) Net premium earned

2) Reinsurance only

n.a. = not available at time of publication

Premium ranking 2014 in m. USD

Rank Group Country GWP NPW

1 Munich Re DE 39,035 37,761

2 Swiss Re CH 33,276 31,640

3 Hannover Re DE 17,457 15,100

4 Berkshire Hathaway Inc. US 14,919 14,919

5 SCOR FR 13,756 12,324

6 Lloyd's2) UK 13,199 10,416

7 RGA US 9,118 n.a.

8 China Re CN 8,373 7,857

9 PartnerRe BM 5,932 5,720

10 Everest Re BM 5,749 5,257

11 Korean Re KR 5,461 3,582

12 Great West Lifeco CA 3,916 3,809

13 Transatlantic Holdings US 3,600 3,410

14 General Insurance Corporation of India IN 2,428 2,216

15 MAPFRE RE ES 2,255 2,011

1)

1)



A superior and highly profitable reinsurer ...

4

Hannover Re's business case

Strong market positioning – one of the leading reinsurers worldwide

De-risking and diversification measures taken to lower earnings

volatility aiming to consistently produce attractive dividends

Effective cycle management, selective and disciplined underwriting in

Property & Casualty reinsurance

Lean structures which lead to the lowest administrative expense ratio

compared to our peer group

Top rating (S&P: AA-) ensures attractive new business

... with a somewhat different approach

Increasing profitability of our countercyclical Life & Health business

Generates noticeably higher profitability

on 5-year average in comparison with our peer competitors



Present on all continents

5

Canada

Toronto

USA

Charlotte

Chicago

Denver

New York

Orlando

Colombia

Bogotá

Bermuda

Hamilton

Mexico

Mexico City

Australia

Sydney

Malaysia

Kuala Lumpur

China

Hong Kong

Shanghai

Japan

Tokyo

South Korea

Seoul

Bahrain

Manama

Spain

Madrid

Ireland

Dublin

United Kingdom

London

France

Paris

Germany

Hannover

Italy

Milan

Sweden

StockholmThe Americas

Europe

Asia

Africa Australia

India

Mumbai

Brazil

Rio de JaneiroSouth Africa

Johannesburg

Life & Health reinsurance Property & Casualty and Life & Health reinsuranceProperty & Casualty reinsurance

Taiwan

Taipei


hannover re's SAP CCOE


The SAP CCOE organization at hannover re

6

Primary Certification since 2004, Best CCOE of the Year Bronze Winner in 2015 (1)

• See also „CCOE Best Practice“ in SAP Support Portal (CCOE page) (1)

Responsibilities shared over collaborating teams in the IT organization

• Aligned to international acting Hannover Re Group

the CCOE is the channelling and structuring contact to SAP

• Adjusted to the IT requirements of a reinsurance company the CCOE acts

centrally from Hannover in close cooperation with the international IT Supply Units

Several topic oriented „direct“ contact channels to SAP

and other organizations for example DSAG and RISAG(2)

• SAP Basis runs SAP Solution Manager and connects via SAP Support Portal

• Business Solutions department with deep knowledge in SAP modules influences

(specific) further development via RISAG

• Support Advisor as overarching contact at SAP due to PSLE-contract

(1) S-User required, German version

(2) ReInSurance ArbeitsGruppe (SAP User Group Reinsurance)


https://support.sap.com/dam/library/SAP Support Portal/support-programs-services/ccoe/events/ccoe-of-the-year/CCOEotY_HallFame 2015.pdf

https://support.sap.com/dam/library/SAP Support Portal/support-programs-services/ccoe/knowledge-transfer/Hannover R%C3%BCck SE_DE (2) Benefit CCOE.pdf


Core task in the CCOE among other is license management for SAP

• About 2000 SAP User in contract (up to 800 parallel active user in core system)

• Different types of user licenses for SAP ERP, BO, B1, and Subscriptions

• PSLE-contract together with talanx, but independently performed licence measurement

Contact to SAP through different channels

• SAP Account Manager (first contact)

• SAP Consulting Services (mainly for CCOE recertification)

• SAP Support Advisor (provided due to PSLE as central support contact)

DSAG, other independent customer groups

• DSAG work groups and contacts in respect to licenses and price list (for DSAG member)

• Contact to Third-Parties (support tools in the area of license measurement)

• Networking at conferences etc.


7

Core competence SAP license management




8

System measurement, license auditing, contract management

License management

• Yearly SAP license auditing procedure in September

• Regular license measurement established for own purpose as “permanent license status”

• See also „CCOE Best Practice“ in SAP Support Portal (CCOE page) (1)

• Since 2015 license measurement in ERP-systems supported by tool (samQ)

for user classification and grouping of user between systems

• Know-how in SAP license structure is important for interpretation of measurement results

and for keeping control over license cost (maintenance)

Contract management

• Merge of different contracts (over the years)

− SAP ERP, SAP BO (Consolidation of SAP BO contracts), SAP B1, Success-Factors, SAP HEC, …

• Participation in DSAG Work Group (DSAG AK CCC / Service & Support)

• Adjusted (later) purchases aligned to realistic need of licenses


https://jam4.sapjam.com/groups/nhOuokLWOmKCS6er00yGCs/documents/w8rtjV9LPgECVB3xBScJhJ/slide_viewer?_lightbox=true

SAP licenses at hannover re


SAP license life cycle of (later) purchase

9

Interrelation of single contracts in respect to licenses

2014/15

Automated

user classifi-

cation with

samQ

Contract 2013SAP App. Biz Analytics Prof.

BA&T SAP BO BI Suite (user)

[Transfer from SBOP to SAP]

Contract 2012BA&T SAP BO

Edge Plan.&Cons.

f. MS

Contract 2004

Professional User

Limited Professional

Employee User

Payroll Processing

Engines (industry spec.)

- RI Insurance Basissystem

- RI Insurance RM non life

- Collection and Disbursement

Contract 2008Developer

Employee User

Payroll Processing

Contr. 2009

Employee User

Contract 2011

Professional User

Biz Expert Upgr.User

SAP (BO) Fin.Cons.

Contract 2012B1 Professional User

B1 Limited CRM User

B1 Software Development Kit

Contract 2012

Professional User

Limited Professional

Contract 2013BA&T SAP Disclosure Mgt.

SAP App. Biz Analytics Prof.

Contracts

2016TDMS

ILM (partly)

Old BO contracts

ERP User

Hierachy

Engines etc.

BO UserCombination

B1

• New projects and additional user

to be taken into account for license

conform planning of later purchases

before performing license auditing procedure

• Each contract with updated “General Terms and Conditions”

(“quarterly updated price list”)

Other

Contract 2015x Developer

x Professional User

x Employee User

xxx ESS

x Biz Expert Upgr.User

Payroll Processing

BA&T SAP BO BI Suite

(User)

Contract 2016

x Professional User

xx Limited Professional

x Employee User

xxx ESS

xxx NetWeaver Found-

dation for 3rd-Party

x Platform User

Future Contracts

???Subscriptions /

Hana / HEC)

2017/1

8 A

dd

an

d R

eco

nfi

gu

re



Up-Front license cost too high, later purchase on levelled ratio at lower cost

Higher priced

user

Lower priced

user

# of users growing

Tool support (samQ)

for user classification

during measurement

based on usage

provides more

accuracy

Controlling of SAP license cost

10

by adaptation to usage and support by tool

Higher priced

user

Lower priced

user

Inaccurate

estimation

of required

user count

by projects

…

For being

license compliant

higher priced users

preferred and also

more than needed

Compliant

licences based

on real usage

lead to

levelled ratio

…

Basis for

planning

of (later)

purchases

(yearly maintenance cost follows…, at lower level)


SAP license management at hannover re


License measurement for SAP

11

Permanent status with yearly reporting date

# Developer

# Professional User

# Limited Professional

# Employee User

# ESS-User

# Biz Expert Upgr. User

# Payroll Processing

# BA&T SAP BO Edge P&C

# BA&T SAP Disclosure Mgt.

# SAP App. Biz Analytics Prof.


# SAP BO BI Suite (User)

# B1 Professional U

# B1 Limited CRM User

# B1 Software Dev.Kit

ERP User

Hierarchy

ERP User

Hierarchy

Engines

etc.

BO UserCombination

B1

Other

P03

PH1

IHP

Man

ua

lly p

erf

orm

ed

Cla

ssif

icati

on

US

MM

Do

wn

loa

d

Co

ns

olid

ati

on

an

d

Valid

ati

on

in

Excel

manual effort

of person days

for each

measurement

(Transaction

USMM)

Since 2014/15

automated User

Classification

(daily current)

on basis of

used

transactions

(samQ)

P03

PH1

IHP

Preparation of license audit with

automated Classification before LAW

P03

PH1

IHP

DM

FC

IH

B1

Per reference date (e.g. quarterly) manually

consolidation of licence status (2)

LAW

Result

USMM-

Reports

Contract

and License

Know How

Download in

Excel list

Download

Consolidated

measurement

result for transfer

to SAP

(partly per LAW)

Valid

ation

regard

ing o

vera

ll

contr

act

Planning of

later purchase

Consolidation is

basis for next

planning phaseAutomation

Know How about

structure of licenses,

contracts, measurement

(2) Consolidation over systems supported by unique User-Id (naming conventions to be considered)

SAP lic.mgmt. @ HR



12

Consolidated license status based on measurement

Consolidated license status is basis for

internal Cost Allocation and Transfer Pricing

(cost model)

Basis for planning of later purchases

• Consolidated overview (on basis of unique User-IDs)

• Inquired needs of new licenses from projects

• Extrapolation of growth of departments/company

ERP User

Hierarchy

Engines

etc.

BO UserCombination

B1

Upgrades

# Developer

# Professional User

# Limited Professional

# Employee User

# ESS-User

# Biz Expert Upgr. User

# Payroll Processing

# BA&T SAP BO Edge P&C

# BA&T SAP Disclosure Mgt.


# SAP BO BI Suite (User)

# B1 Professional U

# B1 Limited CRM User

# B1 Software Dev.Kit

# …

and Engines …

Basis is „Named User“

with information for

system, company, etc.

Compliant optimization of SAP Licenses based on actual usage

• Automated classification of users (for ERP) with subsequent manual consolidation

• Measurement results and planning of later purchases lead to additional licenses

SAP lic.mgmt. @ HR


USMM and SLAW/LAW2 for SAP licence audit, and preceding user classification

Use supp. tools at an early stage, constantly, and where possible automated

Right of reconfiguration if possible and do proactive planning of later purchase

Consideration of 3rd-party systems (e.g. DOXIS), S4/Hana, Subscriptions etc.

Named User + Engine

• Hierarchy (Dev./Prof./Limited/BIUser/Employee/ESS etc.)

• Limited Professional User

− Defining agreement for existing customers (German: “Bestandskunde”)

− Ratio of “Limited Professional User” to “Professional User”

• Upgrade User (combining user types over modules)

• “Indirect” usage

• Engines


13

Important aspects from hannover re's perspective

Valid price list and reference to purchased license contracts

License terms and structure

SAP lic.mgmt. @ HR

Conclusion from procedure at hannover re


Conclusions from procedure at hannover re

14

Key take away

The SAP CCOE must show dedicated commitment to the license topic

• Know-How in respect to SAP licenses must exist in customer organization

• Channelling of license/contract topics (e.g. from projects and measurement activities)

from hannover re’s process perspective is assigned to a dedicated supplier manager

Ongoing tracking of the license status

• Established procedure for ongoing license auditing/measurement for own purpose

User classification in ERP systems automated with tool support

(based on usage, compliant, automated with samQ (reduced effort))

Prepare planning of later purchases on a regular basis and at an early stage

(controlling of the yearly maintenance fee)

Optimization of SAP licenses at hannover re

Conclusion


Disclaimer

15

This presentation does not address the investment objectives or financial situation of any particular person or

legal entity. Investors should seek independent professional advice and perform their own analysis regarding

the appropriateness of investing in any of our securities.

While Hannover Re has endeavoured to include in this presentation information it believes to be reliable,

complete and up-to-date, the company does not make any representation or warranty, express or implied,

as to the accuracy, completeness or updated status of such information.

Some of the statements in this presentation may be forward-looking statements or statements of future

expectations based on currently available information. Such statements naturally are subject to risks and

uncertainties. Factors such as the development of general economic conditions, future market conditions,

unusual catastrophic loss events, changes in the capital markets and other circumstances may cause the

actual events or results to be materially different from those anticipated by such statements.

This presentation serves information purposes only and does not constitute or form part of an offer

or solicitation to acquire, subscribe to or dispose of, any of the securities of Hannover Re.

© Hannover Rück SE. All rights reserved.

Hannover Re is the registered service mark of Hannover Rück SE.

Conclusion

SAP LICENSE OPTIMIZATION

22.06.2017

WITH SAMQ

Martin Kögel, VOQUZ

24

Periodical licenseoptimization acrossall connected SAP

systems

Find anddeactivate

inactive users

Automatedlicense

allocationaccording to

activity in SAP

Ongoing trackingof engine

consumption

View licensedetails and

histories in thesamQ

Dashboard

Analysis ofindirect accessby homegrownand third-party

software

SAP SYSTEM MEASUREMENT WITH SAMQActive and continuous

25

SAP SYSTEM MEASUREMENT WITH SAMQ

▪ Professional

▪ Limited Professional

▪ Employee

▪ …

User classification

Most common

standard licenses

ch

arg

ea

ble

Price list

Additional

standard licenses

Contractual agreements

Additional license allocation

▪ Worker

▪ Logistics

▪ Project Self Service

▪ ….

▪ Multi-client system

▪ Test

▪ Basis administration

▪ Individual license A

▪ Individual license B

▪ …

USMM

LAWResult

26

SAP SYSTEM MEASUREMENT WITH SAMQ

▪ Professional

▪ Limited Professional

▪ Employee

▪ …

Most common

standard licenses

ch

arg

ea

ble

Price list

Additional

standard licenses

Contractual agreements

Additional license allocation

▪ Worker

▪ Logistics

▪ Project Self Service

▪ ….

▪ Multi-client system

▪ Test

▪ Basis administration

▪ Individual license A

▪ Individual license B

▪ …

USMM

LAWResult

Automated

user

classification

with samQ

27

▪ Including all individual license types (named users)

▪ Define and run additional reports on license usage and user behavior

▪ Capabilities for identification of developers and free development resources

LICENSE OPTIMIZATION WITH SAMQsamQ optimization report

28

ACTIVE SAP LICENSE MANAGEMENTAll information at your finger tips

29

SCENARIO ANALYSISFind your best licensing strategy

▪ Run analyzes and develop license scenarios based on any desired customizing settings

▪ samQ offers templates for standard license types (e.g., worker, logistics and project user)

30

Discover non-dialogue users in connected SAP systems

INDIRECT ACCESSTool-supported analysis

31

8 interfaces, which must be analyzed for

indirect access

48 interfaces are uncritical

▪ Only technical activities

▪ The customer can prove that it is

not a case of indirect use

INDIRECT ACCESSTool-supported analysis

32

VOQUZ THANK YOU FOR YOUR ATTENTION

VOQUZ Labs GmbHReichenbachstr. 2

85737 Ismaning, Germany

Martin Kögel

Director Business Development

P. +49 89 925191417

E. [email protected]

www.voquz.com

Documents

Active SAP License Management @ hannover re€¦ · Active SAP License Management @ hannover re ... Hannover Re's business case ... and connects via SAP Support Portal •Business