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Millennials at HP Inc. Challenge Manual, Fragmented Processes with SAP S/4HANA
Roopkala SubramanyanBusiness Solution Architect
Rohit BhartiIT Architect
HP Inc.
2 © 2020 ASUG Confidential
AgendaObjectives
❑ HP Inc.’s Digital Transformation journey to replace fragmented processes with seamless automation, standardization and simplification
❑ Business Improvements achieved
❑ Challenges experienced
Contents
❖ Legacy Landscape
❖ End State Objective
❖ Design Principles & Supply Chain Digital Transformation
❖ S4 Hana Design Elements
❖ Lessons Learnt
3
#58 on theFortune 1001
$58.8B
revenue in FY19
Operations in
170 countries
#1 Newsweek America’s Most Responsible Companies2
250,000+channel partners
~55,000employees
#6 Barron’s Most Sustainable Companies3
27,000+patents4
HP TODAY
3
1. HP ranking as of May 2020–please see http://fortune.com/fortune500/hp/2. Reprinted with permission from Newsweek–please see https://www.newsweek.com/americas-most-responsible-companies-20203. Reprinted with permission from Barron’s–please see https://www.barrons.com/articles/the-100-most-sustainable-companies-51581095228?mod=hp_LEAD_14. As of October 31, 2019 HP has more than 27,000 patents globally per our 10-K Filing here: https://s2.q4cdn.com/602190090/files/doc_financials/2019/ar/hp-inc_10-ka-(1).pdf Pg. 6
4 © 2020 ASUG Confidential
# 15 Most Innovative Companies 2020
# 12Top Supply Chain Companies 2020
2020 Accolades …
5 © 2020 ASUG Confidential
Fragmented Business Process and Architecture
6 © 2020 ASUG Confidential
Contract Manufacturers, Suppliers
LogisticsCustomers partnersMoving
to digital
Physical supplychain
Digitalvaluechain
Supplychainlayers
BI analytics
Logistics Control Tower
ERP S4
Planning IBP
Plan Source OrderMake DeliverDefine
Digital Customer experience Mobile, RPA, APIs …
Supply Chain Digital Transformation
7 © 2020 ASUG Confidential
End State High Level Architecture
7
Customers
Ariba**
IBPPlanning
Direct & Indirect Suppliers
Logistics
Control
Tower
CIG
PI/PO
Order Status system
ODW/BW /4 HANA
Master Data Customer Master
Material Master
PIR ,Costing
Mini HR
Config /Price /Quote
Order Capture Manufacturing Partners
EDI Orchestration 6020
850/860/856/810
EDI Orchestration 6020
940/945/856 LSP‘s/DC
Carriers
IC & Trade Procurement IC and Trade
Order Management
Logistics Accounts Payable & Accounts Receivable
Trade Invoicing RAR
Returns and Repairs EWM
z
Engineering Assets/ RPA / Manual
▪ Cloud Applications▪ External Partners ▪ S/4 HANA
**Forecast , Indirect, Direct Procurement Collaboration
PS4
SAP GTSGT, Customs &
Compliance
ILMData retentionInvoicing / etc.
SAP GRCNfe / User security /
etc.
Solution mgr.Central SAP mgmt.
System Status Messages
SOM ./ BRIM
One source
CS
8 © 2020 ASUG Confidential
Use “Out-of-the-Box” Functionality
Adopt the pre-configured solution. Significant business justification and executive approval required for something other than “out-of-the-box, pre-configured functionality.”
Standardize and Simplify Global Processes
Drive solution design from leading practices, not legacy constraints. Optimize for global success, not local needs – design for the common good through standardized processes.
Do Not Replicate The PastThis is a business transformation effort with a strong focus on efficient new capabilities. Get to why things are done, not just how. All processes & applications are subject to reassessment.Nothing is sacred.
Change is Hard; Focus on Adoption Daily
Be prepared for significant change – success does not come without a cost and many business processes and systems will be impacted. Adoption will require each team member to commit daily – through words and actions – to helping our colleagues change.
Build a Scalable, Holistic SolutionFocus on the entire end-to-end business process and achieving processes and systems that work together to meet our current and future business needs.
Prioritize Timeline over Scope Once established, program milestone dates should not be compromised. An overall commitment to program timing must be established to deliver business value. without compromising on Minimum Viable product
Design Principles
“This is a change management effort not an IT system upgrade…
9 © 2020 ASUG Confidential
Key Integration➢ Order Capture integration –EDI, Portals➢ Pricing➢ Flexible rule-based plant determination➢ GTS Compliance check ➢ Credit and Collection Check ➢ Tax calculation using One Source
Master Data:❑ Intercompany Customer & Vendor Record❑ Intercompany Pricing❑ Automated creation of documents
Sales Order to Purchase Order
Key Integration:➢ Partner Collaboration – EDI or Ariba➢ HR Mini Master➢ Key requirements – e.g. ship date, special
labels, priority ➢ IBP integration➢ Spend Management➢ Royalties and Rebates ➢ Flexible workflows for PO approval ➢ BI Reporting
Master Data:❑ Business Partner/Vendor Master❑ Trade Purchasing Information Record for
source of supply and vendor pricing❑ Quotas
Master Data:❑ Delivery Plant from Material Master❑ Business Rule Framework Plus (BRF+) Rules
for plant determination ❑ Automated Compliance, Credit and other
checks
Key Integration➢ Automated creation of documents
S4 Design Elements
10 © 2020 ASUG Confidential
Key Integration ➢ Dropship ( Direct Ship model ) –EDI, Ariba➢ Replenishment –EDI, EWM, IM or Ariba➢ Consignment ➢ Serial Number Management , Country of Origin ➢ Customs Requirement GTS Integration➢ Shipment visibility, shipment ownership ➢ Financial inventory booking
Master Data❑ Vendor master❑ Payment terms
Factory Ship to Customer Receipt
Master Data:❑ Business Partner – Customer Master
Physical Shipment
S4 Design Elements
Master Data:❑ Route Determination❑ Shipping point and Loading group❑ Serial Number profile
Key Integration➢ Vendor Invoice – EDI, OCR, Ariba, Self Billing/ERS➢ BRF+ enabled AP Workflow for approvals➢ Rebate & Spend Management➢ BI Reporting ➢ HR Mini Master
Key Integration ➢ Rule based customer invoicing
based on proof of delivery➢ Revenue Accounting &
Reporting (RAR)➢ E-Invoicing, Customer EDI
11 © 2020 ASUG Confidential
Global Standardization
Adoption of Centralized Master Data Management
Business Process
Adoption Management
of Change
Fallout Management
Lessons Learnt
12 © 2020 ASUG Confidential
What Worked Well For Us
13 © 2020 ASUG Confidential
13
55+ DC/LSP partners, ~70 Manufacturing and ~150 3PO/AMO partners newly onboarded or new
capabilities deployed
>90K User Acceptance and System Integration Test Steps, and >4.8K
individual cutover steps
6.3K+ users trained and
securely set-up
>240 interfaces built or updated between S4 and Legacy assets and ~900 Legacy asset development requirements, BI reporting development
14+ Global and localization design sprints, ~600 Development Objects and associated unit tests and >100K
development hours
Shipments delivered toall 50 US states ,13
Canadian territories, 19 Latin American
countries and EMEA countries
Where Are We In The Transformation Journey….
Questions?
14 © 2020 ASUG Confidential
For questions after this session, contact us at [email protected] and [email protected]
Thank you.
15 © 2020 ASUG Confidential
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