SAP S/4HANA & The Intelligent Enterprise Nordic User Group

SAP S/4HANA & The Path to The Intelligent EnterpriseNordic User Group – September 12th 2019

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SAP Strategy: Deliver the Intelligent EnterpriseKey Building Blocks

Intelligent Suite1

Intelligent Technologies2

Digital Platform3

Automation powered by AI

Advanced insight predictive analytics

Digital-age user interface with conversational UI

Digital assistance with in-context chatbots

Next-generation business processes for the digital economy


The Digital CoreSAP S/4HANA – The most comprehensive, intelligent, ERP suite

• Overview Page & Analytics

• Procurement Hub

• Predictive Contract

Consumption

• GR/IR Reconciliation

• Commercial

Project Mgmt.

• Project & Portfolio Mgmt.

• Variant Configuration

• Recipe Management

• Realtime Finance (UGL)

• Closing Cockpit

• Commodity Mgmt.

• Compliance Framework

• ML Cash App

• Bus. Integrity Screening

• New Customer Management,

Service Core Option

• Multi-Channel Interaction

Center

• Legal Content Management

• GDPR Tools

• Co-Pilot as Digital Assistant

• New Geographical

Enablement

• Report & Repair Malfunction

• Asset Mgmt. for Resource

Scheduling

• Key Industry function

embedded inside

(e.g. Automotive,

Consumer, Retail, Mill…)

• Re-architecture & improved

functions (e.g. Chemicals,

A&D, Oil Gas…)

SAP S/4HANA

• Order Fulfillment &

Delivery Performance

• One Single Invoice

• International Trade

• Predictive Quote-2-Order

• Realtime Inventory

• Embedded TM

• Embedded EWM

• Advanced ATP

• Predictive Stock in Transit

• MRP live

• Detailed Scheduling

Optimizing with PPDS

• Demand Driven MRP

• Complex Manufacturing

Procurement Sales Supply Chain Manufacturing R&D

Finance Service Asset Mgmt. Cross Functions 25 Industries


SAP S/4HANA supports the intelligent enterprise through four key pillars

Digital Age User

Experience

Intelligent

AutomationEnd-to-End Real-time

Analytics

SAP S/4HANAYour trusted path to an intelligent enterprise

Artificial intelligence and

robotic process automation

eliminate more than half

of manual tasks

Context aware, real time,

predictive insights so you

can make better decisions,

adjustments, faster

Digital assistance and

natural language

conversations for increased

productivity and user

satisfaction

New Business

Models

Rapidly design and execute

new business models and

digital services, based on

advanced end-to-end

processes


Digital Age User ExperienceThe evolution of SAP Fiori

Casual User

Self ServicesPower User

Mobile

iOS & Android

SAP Fiori

2013

SAPFiori 2.0

2016

This is the current state of planning and may be changed by SAP at any time without notice.

Conversational

with SAP CoPilot Consistent

Intelligent

Integrated

SAP CoPilot

SAPFiori 3

2019+

First step

available today


Digital Age User Experience Monitor Material Planning / Consumption


Digital Age User Experience Manage / Monitor Production Orders & Capacity


Digital Age User Experience Lists & Document Flow


Digital Age User ExperienceCoPilot – SAP’s Digital Assistant and Bot Integration Hub

Humanized Next-Gen UX with a Conversational UI using

Natural Language Processing functionality

Cross Applications with One Personality and One

Memory across all SAP

Self Learning system using machine learning functionality

to gain knowledge based on historic data and experience

Business Context Awareness understanding the business

situation and pro-actively suggesting solutions

Open and Extensible for Integration to SAP and

Non-SAP Solutions

Enabling our customers and partners to extend CoPilot

Skills through bots, agents and APIs


Lighter and more

neutral, to blend

more into the

background,

giving application

content the

center stage

Digital Age User ExperienceNew SAP Fiori 3 theme: Quartz Light

SAP S/4HANA Cloud 1908

SAP S/4HANA 1909


Intelligent AutomationDelivered and Lab Preview ML use cases for SAP S/4HANA*

* This is the current state of planning and may be changed by SAP at any time without notice


Intelligent AutomationSelf-Service Procurement: Convert Free-text Order Items to Catalog Items using ML

Automatically

investigate

free-text items

Provide auto-

recommendations

for catalog items

to be created

Historical

Free-text

order items


Intelligent AutomationClear Goods Receipt and Invoice Accounts using ML


New Business ModelsTransform the value chain and business model

From selling products

Sell Produce Deliver Invoice Service

To selling outcomes

Manage and Service

InvoiceClose

ContractProduce Deliver

By providing machines and equipment bundled with services and consumables, companies can charge for outcomes, deliver product usage insights to customers, and create a more sustainable revenue stream.


New Business ModelsIntelligent technologies: SAP Leonardo everywhere

Accelerate innovation

Applications that deliver intelligence within

core business processes such as Intelligent

ERP and Intelligent HR.

Develop custom solutions

Employ Internet of Things, artificial

intelligence, machine learning, analytics,

microservices, and data management tools

that will be available over the SAP Cloud

Platform to deliver intelligence out of the

box as well as through co-innovation.

Digital boardroom

Connect the enterprise to intelligence for

the CXO.

Innovation services

Combining design-thinking and

Industry accelerators to ensure value from

innovative new technologies quickly and

with reduced risk.

SAP Leonardo

Industry Innovation Kits

Consumer

Products Assets

& Logistics

Discrete

Mfg. Service &

Assets

Chemicals

Spare PartsDiscrete Mfg.

Logistics &

Spare Parts

Retail Assets &

Logistics

Travel &

Transport

Logistics

Utilities

Service &

Assets

Chemicals

Service &

Assets

Embedded Intelligence

SAP Intelligent

Cash Mgmt.

SAP Resume

Matching

SAP Customer

Retention

SAP Global

Track & Trace

SAP Vehicle

Insights

SAP Predictive

Engineering

Insights

SAP Asset

Intelligence

Network

SAP Mfg.

Execution

SAP Predictive

Maintenance

& Service

SAP Service

Ticket

Intelligence

SAP Brand

Intelligence

Machine Learning | Internet of Things | Blockchain | Analytics |

Big Data | Data Intelligence

Digital Boardroom

DEMO 1Service-Oriented Business Model


End-to-End Real-time AnalyticsReporting & Analytics Examples


End-to-End Real-time Analytics Embedded Analytics - Incoming Sales Orders


End-to-End Real-time Analytics Embedded Analytics - Predictive Sales Performance


Group ReportingConsolidation – multiple entities


What is SAP Analytics Cloud for SAP S/4HANA?

It is MORE! It is EMBEDDED! It GOES BEYOND!

SAP Analytics Cloud

SAP S/4HANA

SAP Analytics Cloud

SAP S/4HANA SAP S/4HANA

… than SAP S/4HANA … into SAP S/4HANA … SAP S/4HANA


SAP S/4HANA 1909Analytics with SAP S/4HANA – high level architecture

Persistency

Modelling

Visualization

Access

Database tables on SAP HANA

ABAP-CDS-Models(for analytical and transactional purposes)

SAP Fiori UIanalytical apps, reports, KPIs,… delivered as part of SAP

S/4HANA, extensible by the customer

Odata servicesTransient analytical

queries

SAP Analyticsaccess SAP S/4HANA data directly via

Transient analytical queries

SAP S/4HANA

SAP BW/4HANA(for seamlessly extending transactions with data

warehousing workflows)

Database tables on SAP HANA

Intelligent Technologies


SAP S/4HANA 1909Manage KPIs and Reports SAP Fiori App

ONE application instead of MANY to

Create Group

Create KPI

Create Report

Create Tile/application

Create Report (from main screen)

Associated Groups

Filter Bar and Variants in KPI and Reports screen

KPI Tag in Analytical List Page

Visual Filter in Analytical List Page

Create Analytical List Page (ALP) application

Add KPI TAG in Analytical List Page

Add Visual Filter in Analytical List Page


Digital BoardroomCustomer example: Financial Overview

DEMO 2Digital Boardroom


SAP S/4HANA customer momentum is strongas of July 2019

SAP S/4HANA Customers

11,500+Live Customers1st thousand in 2 years 7 months, 2nd thousand

in 10 months, 3rd thousand in 9 months

3,200Deployment Projects

6,200

Reduction in days sales

outstanding

48%

Shorter delivery lead

time

30%

Increase in operational

efficiency

60%

Faster report generation

80%

Faster material requirements

planning

95%Visibility of inventory across

all locations

100%

Examples of SAP S/4HANA benefits

these customers have reported:

https://www.sap.com/documents/2016/12/c4520024-9d7c-0010-82c7-eda71af511fa.html


Imagine: Anytime financial close

Intelligent System

• Timely insights

• Soft-close, on-the-fly financial reporting

• Real-time decision-making

Benefits (customer: Horizon)

• 75% reduction in days to close

• 25% reduction in G/L and financial closing costs

• New self-service approach with less reliance on

IT to get financial reports

Prior System

• Time-consuming, error prone consolidation process

• Delayed strategic decisions due to lack of

financial visibility

• Limited financial analysis capability

SAP S/4HANA Solution

• Dramatically reduced reconciliation

• Real-time consolidation

• Single source of financial truth

Discover your value: http://impact.s4value.com

Companies who reduced their financial close time:

http://impact.s4value.com/

https://www.youtube.com/watch?v=N7MpUv4vbi8&feature=youtu.be

https://www.sap.com/documents/2016/12/52008023-9c7c-0010-82c7-eda71af511fa.html

https://www.youtube.com/watch?v=tayUFhCwuhc&feature=youtu.be

https://www.sap.com/documents/2017/04/ec594c8a-b67c-0010-82c7-eda71af511fa.html


Imagine: Automated order-to-cash

Intelligent System

• Optimized Accounts Receivable

• Frictionless order processing

• Big reduction in costs, big productivity

improvement

Benefits (customer: Hwashin)

• 15% decrease in processing time for invoices

• 10% reduction in global settlement schedule

• 10% reduction in days sales outstanding

• 25% reduction in A/R costs

Prior System

• Manual effort to interface with external credit agencies

• Inefficient collection and dispute handling

• Un-reliable rule-based approach to invoice matching

SAP S/4HANA Solution

• Full automation of creditworthiness

• Centralized repository

• Eliminate intergroup transactions

• Cost and profitability analysis by vehicle type


Companies who automated order-to-cash:





https://www.sap.com/documents/2017/02/2cd55a6d-aa7c-0010-82c7-eda71af511fa.html


Imagine: Demand-driven supply chain

Intelligent System

• One platform to connect all technology-

supporting areas, such as HR, finance, logistics

and supply chain

• Capture demand insights

• Rapid synchronization to avoid overstocking of

product

Benefits (customer: JTI)

• Synchronize capacity and materials planning

• 5% reduction in inventory

• 6.9% increase in customer order fill rate

• 10x faster MRP run

Prior System

• Rigid supply chains slow to change

• Poor and delayed demand insights

• Complexity and silos

• No demand-driven planning

What’s Possible

• Transform to fluid supply chains and demand networks

• Demand information captured through new signals

• Ability to orchestrate complex networks

• Manage demand-driven planning


Companies leveraging new SAP S/4HANA supply-chain capabilities:



What industry leaders are doing today

Hoerbiger Group

“We want intuitive. We want future-

oriented. We want fast. We want

the modern system, the modern IT

landscape. So, we very quickly

came to the SAP S/4HANA

solution.”

Challenges

Hoerbiger needed to continue planned growth and also transition to public company.

Their broad geographical presence in more than 100 locations required them to

establish a reporting system for plants with globally defined KPIs to improve plant

performance through effective use of assets by preemptive actions on maintenance

and repairs, lower inventory and processing of customer invoices. Their customers

now need products faster and configured to their requirements.

SAP S/4HANA Innovations

Hoerbiger decided to redesign their business processes for standardization and

simplification. They utilized the capabilities of SAP S/4HANA and intelligent asset

management solutions to automate equipment usage measurements and automated

customer invoicing based on usage. SAP S/4HANA also enabled to capture unique

product specifications using Machine Learning, Orchestrated complex networks of

internal/external partners and hence Improved business planning, billing accuracy

and customer satisfaction

Benefits

Moving from SAP ECC to SAP S/4HANA, together with process standardization, has

yielded:

• 14% Revenue increase

• 30% reduction in inventory

• 84% more standardization in processes to bring scalability and agility for business

models

• 42% faster Service Delivery while lowering DSO by 5-10%

Industry

Industrial Machinery

& Components

Employees

7,300

Region

MEE, Austria


Best Run companies have already transformed with SAP S/4HANA

Traditional Business Models Best Run Business Models

Personalized ‘Smart’ Products & Services

Service

Consumer direct/connected channel

Recognized brand

Resiliency

Multi-enterprise orchestration

Thinking processes & systems

Real-time/Transparency

Mass market products

Equipment

Disconnected intermediaries

OEM

Simple efficiency

Point to point

Reactive Processes & Systems

Latency/Obscured

Impact

Role

Em

plo

ye

e

Overhaul the

corporate

strategy

Make rapid,

accurate,

data-based

decisions

Constantly

deliver

innovation

Continuously improve

operational excellence

Deliver

Customer

Value

• 10% - 20% Increase in revenue

from new offerings

• 10% - 20% Increase in customer

satisfaction

Challenges

• 75% Lower total cost of ownership

• 50% Reduction of data footprint

• 10% - 40% Increase productivity

• 10% - 30% Increase on-time

delivery rates

• 60% - 70% Reduce of total

vendor invoice processing time

• 10% - 15% Reduction of total

logistics costs

• Up to 10% Reduction of total

manufacturing costs

• 40% - 50% Reduction of time spent

on period end close

• 25% - 30% Reduction risk and

compliance costs

Source: SAP Performance Benchmarking

Documents

SAP S/4HANA & The Intelligent Enterprise Nordic User Group