Michael Lamade, SAP SE Global Head of S/4HANA Industry ... · Michael Lamade, SAP SE Global Head of S/4HANA Industry Program October 2015 ... •Public Sector

Enabling the Digital Transformation with SAP S/4HANA

Run Simple with the Next-Generation Business Suite

Michael Lamade, SAP SE Global Head of S/4HANA Industry Program

October 2015

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2Internal

Agenda

Why SAP S/4HANA?

Strategy and Motivation

What is SAP S/4HANA?

Scope, Deployment Options, Roadmap

How do I get to SAP S/4HANA?

Transition Options, Services


HANA helps to win – SAP Match Insight

Player Analytics

Game Analytics

http://www.sap.com/customer-testimonials/sports-entertainment/dfb-de.html


SAP Simple Finance powered by SAP HANA

SAP Business Suite powered by SAP HANA

SAP HANA

SAP Business Warehouse powered by SAP HANA

2011 20132012 2014

Real-time analysis

Real-time reporting

Real-time business

OLAP & OLTP

together

SAP HANA

Enterprise Cloud for

Suite on HANA

2015

In-memory

platform

Instant financial

insight

No aggregates

Single source of

truth

Simplified data model

New user experience

Advanced processing

Choice of deployment

Multi-tenancy

SAP S/4HANA, the next-generation business suite

15 Customers live

240+ ongoing Projects

1400+ Customers

as of Sept 2015

Current

adoption480+ Customers live

620+ Projects

3270+ Customers

630+ Customers live

310+ Projects

2710+ Customers

210+ Customers live

560+ Projects

1800+ Customers


How can I better

utilize my products

and assets?

Assets and

Internet of Things

Analyze sensor data from

products, and deliver

outcome-based

experiences

Monitor assets on the

factory floor to predict

failure and decrease

downtime

Gain instant visibility into

whereabouts of in-transit

materials to drive new

scheduling efficiencies

Business leaders need to digitally transform across five

key pillars

5

How can I better

engage my

workforce?

Workforce

Engagement

Attract and retain talent

by clearly communicating

business impact

Enhance decision making

with a cross-device,

personalized user

experience

Gain full visibility into

critical human resource

gaps to prevent business

disruption

How can I deliver an

omnichannel

experience?

Customer

Experience /

Omnichannel

Engage customers more

personally with one-to-

one marketing

Personalize products and

offerings by slicing and

dicing customer data on

the fly

Predict customer

behavior, and make

context-relevant product

recommendations

How can I increase

supplier

collaboration?

Suppler Collaboration/

Business Networks

Extend business

processes, and deliver

new value to customers

Gain the flexibility to

customize to changing

customer demands in

shorter planning cycles

Orchestrate profitability

with real-time sensing of

demand-and-supply data

How can I

digitize my core?

Core Business

Processes

Move away from lengthy

and time-consuming

batch processes

React quickly to market

signals happening in

real-time across the

value chain

Connect my enterprise to

people, devices,

business and social

networks


SAP HANA AS THE

UNDERLYING PLATFORM

OLAP & OLTP MERGE

IN-MEMORY COMPRESSION

INCREASE IN SPEED

SIMPLIFICATION OF

APPLICATIONS AND UNDERLYING

DATA MODEL

NO AGGREGATES & NO INDICES

HIGHER FLEXIBILITY &

THROUGHPUT

DATA FOOTPRINT REDUCTION

SAP FIORI AS THE USER EXPERIENCE

(UX) PARADIGM

CROSS-APPLICATION USER

EXPERIENCE

WEB-BASED, ALL DEVICES

ROLE-BASED

DECISION SUPPORT

SAP S/4HANA – 1 solution for 1 business problem4 Key Enabler to run digital transformation for key enterprises

SAP HANAREAL-TIME &

SIMPLIFIED

SAP FIORI

Native Cloud


SAP S/4HANAIntroducing the next generation core and lines of business solutions for the digital economy


Industry Innovation in the Core

S/4 HANA on-Premise Industry Roadmap

SAP S/4HANA FINANCE

SAP S/4HANA SUPPLY CHAIN

All 25 Industries

released

for S/4 HANA with

SAP "Simple

Finance"1)

Industries

• Banking

• Chemicals

• High-Tech

• Industrial Machinery &

Components

• Insurance

• Life Sciences

• Mining

• Prof. Services

• Sports & Entertainment

•Telco• Utilities

• Wholesale

Industries released with

major coverage2)

• Aerospace & Defense

• Automotive

• Consumer Products

• Defense & Security

• Engineering,

Construction &

Operations

• Higher Education

• Mill Products

• Public Sector

• Travel & Transportation

Solution today

1) Restrictions for SAP "Simple Finance" (see SAP Notes 2119188 and 1968568)

2) Limitations only based on selected industry specific scenarios like CWM, DSD, HCM

Planned innovations Future direction

Release of additional

industry scenariosincluding Oil & Gas and

Media

+

First simplified

industry Solutionse.g. Healthcare, Retail,

Public Sector


Top Simplifications / Improvements within SAP S/4HANA

(Business focus)

Topic / Value Example

New business processes/models

Enriched business processes

Re-designed business flows/UIs

Increased user productivity

Intuitive Uis -> less training

Process Receivables

Clear Incoming Payments

Post Incoming Payments

Re-designed processes

Increased user productivity with

obsolete processes steps

Receivables Management

Sales & Operations Planning

Preliminary Cost Estimate

Re-architect computing-intensive

applications

Code push-down from

application layer to database

MRP

Backorder processing

Material consumption

posting (backflush)

Optimize Transactions for HANA

1000+ transactions have been

performance-optimized

<3 sec work without delay

<10 sec work without waiting

<30 sec don’t lose context

Send promoti

on

Predictreorder

point

https://www.youtube.com/watch?v=v6tOQlBTAY4&feature=player_detailpage&list=PL3ZRUb1AKkpROQmXjeM6-S_9AmMizxU-7#t=49

https://www.youtube.com/watch?feature=player_detailpage&v=jFY_911ShWA&list=PL3ZRUb1AKkpROQmXjeM6-S_9AmMizxU-7#t=49

https://www.youtube.com/watch?list=PL3ZRUb1AKkpROQmXjeM6-S_9AmMizxU-7&feature=player_detailpage&v=_morrLqAZTQ#t=44


Top Simplifications / Improvements within SAP S/4HANA

(Business AND IT focus)

Topic / Value Example

Analytics in Operations

Decision support with

simulations, predictive

e.g. ice-cream scenario

e.g. resolve issue based on

simulated proposals

Self-service Analytics

Off-load IT

e.g. Lumira

Data model simplification

Lower data-footprint

Increased throughput

"Simple Finance"

"Simple Logistics"

Re-architect applications -

"best of SAP" strategy

next generation ERP

Enrich MRP with constraint-

based planning from (APO)

Procurement with self-service

requisitioning, catalog, search

Landscape

consolidation/simplification

OLTP & OLAP together

Operational reporting in the

transactional system

Planning applications on

operational data (no latency)

Landscape

consolidation/simplification

co-deployment

e.g. ERP & SCM, ERP & SRM

(lower TCO, simpler admin)


Digitize beyond the core, embrace the digital economy

Internet

of Things

Business

networks

Social

networks

Devices

Big Data

People

Process EnrichedScalability I Real time I Prediction I Simulation

Live DataGranular I Responsive I Accurate

User EmpoweredInstant insight I Contextual information I Personalized

experience

Segment of 1

Individualized

Services

No latency

Traditional core value play

SAP S/4HANA value play

At s

ca

le

Leading-edge processes I Integrated system

Digital transformation of business models

Digital Core

Digital Economy

Digital Transformation


Industry Dynamics SAP S/4HANA Road Map and Why SAP? Next Steps

Introduce new business models

Digital Business Scenario: Use customer data to offer new services and increase revenue

TIME

10-15%Increased

customer retention

20%YOY growth in the

business

Value estimates

30%Reduction in cost

of sales per

customer through

self services

Source: SAP and

Customer Business Case

Suppliers collaboration

business networks

Customer experience

omni-channel

Assets & Internet

of Things

Digital Core

Customer

concerned

about telco bill

1

Collect

consumption

data

2

Benchmark

consumption

3

Offer smart /

services

4

Partner

provides

solution

5

Provide

integrated bill

8

Provide multi-

channel

services

7

Leverage

insight to sell

more

9

Monitor

savings

6


Define Transition Scenario

New Implementation

Non SAP

S/4HANA

System Conversion

S/4HANA

Landscape Transformation

IT System Consolidation Data Carve-Out

Data Reduction (Slimming)Migration of selected applications


SAP S/4HANA – General Adoption PathsVarious Routes and Short-Cuts

SAP ERP 6.0 EhP7

AS ABAP 7.40

SAP HANA

SAP "Simple Finance"

on-premise edition 1503 (aka: 2.0) SAP ERP 6.0

EhP8

AS ABAP 7.50

SAP HANA

SAP "Simple Finance"

on-premise edition 1602 (aka: 3.0)

SAP S/4HANA Core1511

AS ABAP 7.50

SAP HANA

SAP S/4HANA Core1605

AS ABAP 7.50

SAP HANA

SAP ERP 6.0 EhPx(4.6C, 5.0)

AS ABAP 7.xx

Any DB

SAP ERP 6.0 EhP7

AS ABAP 7.40

SAP HANA

SAP ERP 6.0 EhP8

AS ABAP 7.50

SAP HANA

Suite on

HANA

S/4HANA –

Simple

Finance

add-on…

…

…

S/4HANA

Core

Intermediate steps can be skipped


SAP Best Practices for SAP S/4HANAOn-Premise Edition

Ready-to-run business processes

SAP Best Practices for Migration

SAP Best Practices for User

ExperienceIntegration and Extensibility

SAP Best Practices baseline for SAP

S/4HANA, On-Premise EditionSAP Best Practices for

S/4HANA Integration

SAP Fiori

User

Experienc

e

Operational

Reporting

● Ready-to-run business

processes optimized for

S/4HANA containing

OLTP and OLAP

delivered with the

product as new global

baseline

● SAP Best Practices for

Migration to S/4HANA

addressing installed-base

Suite customers and new

customers


Integration with adjacent

cloud solutions build in

the product


S/4HANA Additions on

top of the Foundation

scope, e.g. Cash

Management


Extensibility, like

templates for extending

SAP Fiori

SAP S/4HANAOn-Premise

Edition

SAP Best Practices for AnalyticsIntegration and Extensibility

SAP Best Practices LoB SolutionsSAP Best Practices for Industry

Editions

= first scope delivery 1511

= scope delivery with 1603

and beyond

Legend

Ready-to-run business

processes optimized for

SAP S/4HANA

Support for 12 Industries (no industry

extensions)


So are you ready for your Innovation journey or do you

still…..

Are you able to

innovate and get

your business ready

for the future?

© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Thank you

Contact information:

[email protected]

+49 160 3603219

mailto:[email protected]

© 2015 Deloitte MCS Limited. All rights reserved.© 2015 Deloitte MCS Limited. All rights reserved.

S/4 HANA

Why CFOs

(should) care

October 2015

© 2015 Deloitte MCS Limited. All rights reserved.

Deloitte’s Telco presence

20

All 10 of the largest telco

service providers in the world

All the big 5internet service

providers in the world9 of the 10 largest mobile

device manufacturers in the world

10of the largest

mobile service providers in the world 10

largest network telecom

equipment manufacturers worldwide

Selection of clients Deloitte work with


Telco Industry Disruptions

21

Are your infrastructure

investments generating sufficient

returns?

How Deloitte supports Telco

What is your

IFRS

strategy?

Have you

considered the threat

of the single EU

market to roaming

revenues?

Do you take a full

lifecycle

approach to the

financial

management of

your network

projects?

Are you satisfying

the increasing demand

for stable and reliable

high-speed data

services?

What does

the growing

gap in

broadband

speeds in the

market mean for

your business?

Do you have a

robust strategy for

dealing with the

OTT threat?

Do you understand

your responsibility for

compliance with

IFRS regulation?

Do you know

how to retain customer

loyalty and determine which functionality

customers want at each point in time?

Are your

solutions optimising

customer engagement?

Are your front-end

solutions integrated

across all channels?

Performance Management

& Analytics

Finance

Transformation

Customer

CentricityIFRS15 Procurement 2.0HR ManagementDigital Telco



Innovation and consumer demands are driving evolution in

the Telco Industry

22

CFO’s Challenges and Telco Trends

CFO Challenges

25%

3% 3%

30%

9%7%

48%44%

31%

9%5%

60%

51%

46%

12%14%

0%

10%

20%

30%

40%

50%

60%

70%

Emails SocialNetworks

IM Video Calls VoIP

Weekly usage of data communicationservices

2012

2013

2014

2015

IoT has captured the headlines

New Model


CFOs’ play four critical roles in the organisation

23

CFOs’ role in Finance Transformation

Build the Foundation People, Process, and Technology

Change the “Face” of FinanceStrategists and Catalysts

Continuous Improvement

Enhance FinanceEfficiencies and Effectiveness

One cohesive enterprise Finance team across the organization that delivers more strategic insight

and catalyzes business value.

Transformation

Systems Implementation

Ch

an

ge

C

on

tin

uu

m


What does S/4HANA mean to the CFO?

SAP S/4HANA is a global solution natively built to provide strategic value

with instant insight across end-to-end processes

in any industry

Business Partnership - Engage with the business to drive value leveraging instant prediction,

analysis and planning across financial and operational processes

Operational Excellence - Extend finance processes across business networks for optimal

collaboration with customers, suppliers, banks and government authorities

Compliance and Risk - Maintain global regulatory compliance and controls of

accounting and tax standards, across currencies, languages and industries

Global financial solution

covering end-to-end

processes and delivering

instant insight across finance

and beyond

6


S/4HANA FinanceS/4HANA Finance represents a leap forward for finance

capabilities and user experience

25

Next-Gen User Experience

New web and mobile transactions,

role-based dashboards, and

flexible reporting powered by SAP

Fiori

Central FinancePre-built SAP Landscape

Transformation libraries and data

transformation capabilities enable

rapid deployment of S/4HANA

Finance as a central financial

platform

Integrated Business Planning

Embedded Business Planning &

Consolidations sits within the same

HANA database as S/4HANA

Finance, updates the same

financial tables, and can utilize line

item detail

Universal JournalOne accounting document across

Finance and Controlling simplifies

reporting and display of accounting

document information

Elimination of AggregatesElimination of totals tables, fixed

hierarchies, and database indices

allows for flexible reporting and

dynamic hierarchies pulling from

line item detail in real-time

Accelerated CloseReduction in batch close

processes, processes designed for

real-time operations, and

availability of reporting on demand

enables transition to a continuous

(soft) close


So how do you deploy?We recommend the following decision structure to evaluate

the implementation options for S/4HANA Simple Finance

26

Criteria Option 1

Central Finance

Option 2

Pilot with Phased Rollout

Option 3

Big Bang

Speed to

business value

• Benefits of a centralized financial

database can be realized early

• Longer implementation time will delay

achieving full benefits of the synergies

and cost savings

• Faster deployment and confirmation

of benefits associated with Simple

finance

• Flexibility to correct course based on

results from the pilot

• Rapid deployment for entire business

resulting in speedy recovery of costs

and realization of synergies

Speed to

Deployment

• Lengthy implementation cycle

• Multiple releases and interim

workarounds

• Medium duration timeline to achieve

Target State

• Relatively faster deployment of the

Target State solution

Business Risk

• Least Risk Overall

• Change Management: Most users will

be trained in new capabilities at the

same time without benefit of an

experienced user

• Governance and Control strategies will

continue to be complex to accommodate

multiple systems until full solution is in

place

• Medium Risk

• Change Management: Initial group of

pilot users can act as experienced

SMEs for other business units in

future releases

• Governance and Control strategies

will continue to be complex to

accommodate multiple systems until

full solution is in place

• Highest Risk Overall

• Change Management: Highest

adoption risk as the implementation

will be fully complete before it gets

mass user feedback.

• Impacts to other parts of the

organization: Impacts to other areas

may be unknown until implementation

Technology

Risk

• Data Synchronization: Higher

synchronization needs due to multiple

systems

• Data Synchronization: Higher

synchronization needs due to

multiple systems

• Data Synchronization: Low risk as

entire operations would be on a single

instance

Program Cost

• Highest costs for supporting multiple

systems in the interim and overall longer

timeline to Target State

• Higher costs for supporting multiple

systems in the interim.

• Lower cost due to shorter timeline and

limited interim solutions


DeliverDesign & Build TestAnalyze

Develop

Work Plan

Develop

Approach

Prioritized Processes

(for package

implementations)

Educate Users on

Industry Best

Practices Model

Develop

Sprint Plans

Project & Quality Management

Technology/Infrastructure

Organizational Change Management

Deployment

User Acceptance

Test

Support

Integration, Parallel

Performance

& Regression Test

High-level Design

(impact analysis – data

sources and minimal

integration needs)

Sprint 0

Waterfall Thread (i.e. Data Migration)

Number of sprints

determined by project

Sprint plans developed

iteratively

Design, Build, and Unit/System/String Test Sprints

Initial Integration & Regression

Test Sprints

Integration and

regression testing

starts earlier

Testing is executed

as code is ready

Plan

Data Profiling Data Clean up & Conversions

Design and BuildMove to Production

On-board Users

Document

High-Level

User Story

Prioritized

Business

Requirements

Identify ‘best

fit’ Industry

Best Practice

Model

1. New Business

Process (Industry

Best Practices)

2. Foundational &

Master Data (ES,

COA, Customer,

Material, Install

base, etc.)

1. Business Process

Improvements &

Usability

2. Security &

Controls

Support Real-time

Analytics (Clean

Sheet Analytics)

Data Design Data Migration

Using an Hybrid Agile approach is recommended to achieve quicker results

What does a typical program look like?

Illustrative Deployment Methodology

27

© 2015 Deloitte MCS Limited. All rights reserved.28

Further details on Finance

Transformation and S/4HANA contact:

• John Bristow - [email protected]

Questions?


Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, and its network of member firms, each of

which is a legally separate and independent entity. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

Deloitte MCS Limited is a subsidiary of Deloitte LLP, the United Kingdom member firm of DTTL.

This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the

particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication.

Deloitte MCS Limited would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. Deloitte MCS Limited

accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication.


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Documents

Michael Lamade, SAP SE Global Head of S/4HANA Industry ... · Michael Lamade, SAP SE Global Head of S/4HANA Industry Program October 2015 ... •Public Sector