SAP S/4HANA Strategy · This is the current state of planning and may be changed by SAP at any time without notice -Additional license -Additional installation and license

PUBLIC

SAP S/4HANA Strategy

2CONFIDENTIAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the

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therein.

This presentation, or any related document and SAP's strategy and possible future developments, products and or

platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason

without notice. The information in this presentation is not a commitment, promise or legal obligation to deliver any

material, code or functionality. This presentation is provided without a warranty of any kind, either express or implied,

including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-

infringement. This presentation is for informational purposes and may not be incorporated into a contract. SAP assumes

no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or

gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ

materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,

which speak only as of their dates, and they should not be relied upon in making purchasing decisions.


Strategic priorities in digital world

� Rethinking the whole

business from the

end customer’s

perspective.

End consumer

centricity

� Flexible reaction to

changes in demand,

supply and resources

Digital supply chain

& smart factory

� Aftersales Service

� Value add services

� Usage based

charging

Servitization & new

business models

� Intelligent

� Self-aware

Digital

smart products

� Configurability

� Adaptability

� Personalization

Serving the

“Segment of One”


SAP S/4HANA 4 years of innovation delivered

SAP S/4HANA, on-premise edition 1511 SAP S/4HANA, on-premise edition 1610 SAP S/4HANA, on-premise edition 1709 SAP S/4HANA, on-premise edition 1809

SAP S/4HANA is ready for the prime timeKey Innovations* - Evolution

§ Embedded Analytics

§ Effective month end closing

§ Overcome reconciliation

§ Consistent SAP Fiori User Experience &

§ Search

§ Real time inventory

§ Smart Business e.g. MRP cockpit

§ Embedded Software in Product Development

§ Predictive Analytics as a system of intelligence

§ Demand Driven Manufacturing

§ Advanced Variant Configuration

§ SAP Fiori Overview Pages

§ Stack Consolidation

§ Sales Order Fulfillment Cockpit

§ Embedded Analytics for insights to action

§ Intelligent ERP: Machine Learning capabilities & co-pilot skills across all SAP S/4HANA modules such as Track Sales Orders Using NLI

§ Customer Management – The Service Core Embedded in SAP S/4HANA

§ Responsibility Determination

§ Finance: Next Generation Processes

§ Digital Manufacturing: Production Engineering and Operations

§ SAP Master Data Governance – Integral part of SAP S/4HANA

§ Demand-Driven Replenishment


The Intelligent ERP – Core Ingredients Defined

Next GenerationProcesses

Machine Learning / Intelligent Automation

Robotic ProcessAutomation (RPA)

Capture the process flow and

skills totrain bots

Assemble bots,add skills, APIs,

services, triggers

AI-enabled bots in action, mimic the

user, repeat

Health check, expedite

Record Build RunMonito

r

SAP Intelligent Robotic Process Automation

Hyper automated next generation process

Broad machine learning roadmap across all functional domains

Intelligent RPA Tool incl. out of the box scenarios for simple cases

Intelligent Processes

Next GenerationAssistants

Insight to action

Exception Management

Intelligent User Experience

Conversational Digital Assistant Context aware, self-learning pro-active

Insight to action through embedded analytics

Situations handling for business exceptions


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

Lab Preview

Master Data:

ü Smart Default Values in Master Data transactions

ü MDM Business Rule Mining

Initial Idea to Design:

ü Variant Configuration ML based Analytics for configuration data –Top Seller

Optimized Order to Cash Use Cases:ü Sales Order from Unstructured

Data

Accelerated Plan to Product:ü Defect Code Proposal (incl. Text

Recognition)

ü Early Detection of slow and no moving stock

The intelligent ERP is leveraging Machine Learning to Reinvent Businesses

Finance:ü Detect Abnormal Liquidity Items

ü Accruals Prediction

Streamlined Procure to Pay:ü Automation in Source of Supply

Assignment

ü Auto Approval Workflow

ü Picture-based requisitioning

Already Delivered

Over 50 Intelligent Processesand Intelligent UX use cases &scenarios delivered. Such as

ü Sales scenario to proactively avoid delivery delays in order to increase customer satisfaction and loyalty

ü Procurement scenario to provide an accurate Delivery Dates for Purchase Orders and avoid expensive short term exception processing

ü EPPM scenario to ensure cost savings via less budget overruns & better project investment decisions


Vision of Finance TransformationFrom daily routine to supporting growth and new business models

Automation

Runningthe Business

Insights

Operations

Deliver Insights

Operations

Predictive Insights

Backward looking

Real-time Insights

Advanced Analytics

Drive Strategy

Operations

Forward looking

Predictive Insights

Real-time Insights

Backward looking


SAP S/4HANA Finance

Org change impact analysis (2019)

ML Payment Advice Extractor

Smart Tagging Treasury & Risk Mgmt.**

Realtime Finance

Fast Close Analytics Cloud Planning***

GRC Compliance runs***DSO & DPO Cockpits

ML Cash App***

Cloud for Real Estate (2019)

Actual Costing & TP

Predictive SO

New Group Reporting ML Proposed Accrual ML GR/IR Cockpit***

Central Finance**

Extension Ledger

Tax Compliance Automation

GRC ML integrity screen***

Predictive PO (2019)Universal allocation (2019)

new

new

new new new

SETTLEMENT MGMT

ACCOUNTS RECEIVABLE

ACCOUNTS PAYABLE &

RECEIVABLE

COST MANAGEMENT AND PROFITABILITY ANALYSIS

Business Areas:

OVERHEAD COST MANAGEMENT

PRODUCT COSTING

PROFITABILITY ANALYSIS

FINANCIAL OPERATIONS

CASH & SETTLEMENT

MGMT

ELECTRONIC BILLING & PAYMENT

ACCOUNTING AND FINANCIAL CLOSE

FINANCIAL ACCOUNTING

FINANCIAL REPORTING

ENTITY CLOSE

Business Capabilities:

Matrix Consolidation (2019)

Financial Planning Cockpit (2019)

Universal Journal Top down distribution (2020)

Orchestrated Fin. Close (2019)

Financial Analysis ML GR/IR App*** Sales Order Prediction

*This is the current state of planning and may be changed by SAP at any time without notice - **Additional license - ***Additional installation and license.

ML for Accruals (2019)

Convergent invoicing + receivables management and payment handling (2019)Roadmap*


SAP S/4HANA Manufacturing

MRP live & MRP Cockpit Capacity Planning

DDMRP w. graphical plan support & dynamic buffers**

Production Order Cockpit Complex Manufacturing/ PEO**

PPDS: Det. Scheduling & Optimal Orders**

QM Overview w. Inspections & Tasks

PEO enh. 3D & change impact analysis**

QM: ML proactive complaint & resolution processing (2021)

DDMRP for predictive capacity & component demand (2019)


QUALITY, IMPROVEMENT

QUALITY ENGINEERING

JUST-IN-TIME PROCESSING

EXTERNAL PROCESSING

QUALITY MANAGEMENT


MANUFACTURING ANALYTICS

PRODUCTION EXECUTION

EXTERNAL PROCESSING &

SUBCONTRACTING

KANBAN, JUST-IN-TIME PROCESSING

QUALITY INSPECTION,

ENGINEERING, IMPROVEMENT

PRODUCTION OPERATIONS

REPETITIVE MANUFACTURING

Business Areas:PRODUCTION

PLANNING

PRODUCTION CONTROL

MATERIAL REQUIREMENTS

PLANNING

MANUFACTURING INSIGHTS

new

Interactive capacity leveling & automated scheduling (2020)

PEO: Order Change Mgmt., Routing Libraries, Templates & Var. Conf. in PEO (2019)

MRP Cockpit with capacity views (2019)

QM: Results HistoryManage Prod. OrdersMRP Cockpit

majormajor

major

Roadmap*


SAP S/4HANA Sourcing and Procurement

Central Procurement** Self Service Procurement*** ML Predictive Contract Consumption***

Transform Manual Procurement into Automation with Prediction & ML (2020)

Service Procurement with


SUPPLIER EVALUATION

REALTIME REPORTING & MONITORING

INVOICE COLLABORATION

INVOICE MANAGEMENT


SELF SERVICE REQUISITIONING

SOURCING & CONTRACT

MANAGEMENT

PURCHASE ORDER COLLABORATION

REQUIREMENTS PROCESSING

PURCHASING REBATE MGMT

SOURCE ASSIGNMENTPURCHASE CONTRACT

MANAGEMENT

INVOICE PROCESSING & COLLABORATION

CLASSIFICATION, SEGMENTATION &

SUPP. EVALUATION

SPEND VISIBILITY, REALTIME REPORTING

& MONITORING

SUPPLIER MGMT. AND PROCUREMENT

ANALYTICS

Business Areas:OPERATIONAL

PROCUREMENT

SERVICES PURCHASING & RECORDING, PURCH.

REBATE MGMT

PURCHASE ORDER PROCESSING &

COLLABORATION

ML Propose New Catalog Items (Free-Text)***new

ML Material Group Proposal***new

ML GR/IR Reconciliation***new

Guided Buying Materials without Contracts

ML Materials without Contracts***new

Guided Buying with ARIBA***new

Smart Contracting with Legal Contract Integration (2019)

ML Supplier Delivery Prediction (2019)

Manage PO itemsmajor

Include social media platforms and sentiment analysis (2020)

Roadmap*


SAP S/4HANA Research & DevelopmentBusiness Areas:

Automatic project cost forecasting (2019)

Software Compatibility Mgmt.** New Product Compliance Solution**CPM: Enhanced Forecasting, Collaboration, Analytics** Multi-Resource Mgmt.**

EPPM Project & Portfolio Analysis

VC/ML: Analytics & identification of critical combinations (2020)

EPPM/ML: Support for idea selection (2020)

New Variant Configuration with Multilevel Conf.**

Roadmap*


IPD***

PRODUCT ENGINEERING


PROJECT FINANCIALS CONTROLC

PROJECT LOGISTICS CONTROLC

PRODUCT DEVELOPMENT FOUNDATION

PRODUCTION BOM

MANAGEMENT

RECIPE / ROUTING

MANAGEMENT

INSPECTION PLANNING

PROJECT CONTROL

VARIANT CONFIGURATION

Project Schedules VC: Simulation**Product Compliance**

VC: Modeling of combined products (2020)

major

newRecipe Mgmt.**VC Integration w. C/4HANA ecommerce***

new

EPPM: Simplified Data Model (2020f) PLM/Recipe: Contrib.-based formulation w/ comp. breakdown (2019)

PLM/Recipe/ML: formulation & labeling support (2021)

Prod. Comp./ML: Text-based dangerous goods classification (2019)


Embedded TM**

Inventory Turnover/ Dead Stock AnalysisRealtime Inventory w/ high throughput

Embedded EWM**

ML Prediction of Stock in Transit

aATP/ML: Smart material substitution (2020f)

SAP S/4HANA Supply Chain

New aATP**

aATP: alt. BOP & det. Best Plant**

EWM: New Fioris & Unplanned Returns**

EWM: Material flow systems with robotic integrations (2019)

IBP***

Roadmap*

Integration with ATT Pharma

TM: Scenario builder & mixed Pallet building**EWM: sync Del. No & real-time check**


Business Areas:

WAREHOUSE MANAGEMENT SHIPPING

INVENTORY ANALYTICS AND

CONTROL

AVAILABLE TO PROMISE

GOODS MOVEMENT

INVENTORY WAREHOUSING SHIPPING AND TRANSPORTATION

RETURNABLE PACKAGING LOGISTICS

ORDER PROMISING

TRANS-PORTATION

MGMT

new

new

Fiori UX for Kanban (2019)

ML: Prediction of dead stock / slow moving (2019)TM: Overview pages shipping (2019) & receiving (2020)EWM: Optimization capabilities (2019)

TM: Migration tools (2019)

Movement Analysis Predictive SiT aATP: Product Allocation TM Scenario Builder

major

major

majormajor


Decentral S/4HANA EWM***

aATP: partial confirmations in multiple plants (2020) Overview page inventory analyst (2019)


Business Areas : MAINTENANCE PLANNING & SCHEDULING

MAINTENANCE EXECUTION

MAINTENANCE MANAGEMENT

SAP S/4HANA Asset Management

watch the video

Find & manage equipment with spatial information***

Technical Object Breakdown AnalysisCreate & process Malfunction Report

Drilldown to images & technical documents, enhanced 3D support***

Collaborative MRO processes***

Asset Intelligence Network***

Asset Intelligence Network / Asset Central Integration***

Maintenance Planner Overview page

Asset Cost Analysis (2019)

EH&S: Prediction for Safety & Risk Mgmt. (2020)Roadmap*


new

Geographical Enablement

Framework***

EH&S: content provider integration (2020) ML in maintenance execution (2021)

Addtl. Object pages (2019)

Maintenance Planning Overview Technical Object BreakdownProcess Malfunctionmajor

Fiori apps: manage int. refurbishment activities (2020)


SAP S/4HANA Sales

ML: Create sales order from unstructured data (2020)

Sales Order Fulfillment Cockpit

aATP: alter. Plant**

Price planning (2020) and optimization (2021)


Customer 360 view

aATP: determine alter. plant**new

BRIM: Subscription. Order Mgmt.**

BILLING & INVOICING

ACCOUNT & CONTACT

MGMT.


Business Areas:

SALES FORCE SUPPORT1

ACTIVITY MGMT.

ORDER AND CONTRACT MANAGEMENT

SALES MASTER

DATA MGMT.SALES ORDER MGMT.

& PROCESSINGCLAIMS, RETURNS & REFUND MGMT.

SALES MONITORING & ANALYTICS

OPPORTUNITY MGMT.

SALES & SOLUTION

BILLINGPRICE MGMT

SALES REBATES

MGMTQUOTATION

MGMTSALES

CONTRACT & QUOTATION MGMT

SALES LEAD& OPPORTUNITY

MGMT.

NLP skills for sales document***new

Manual invoice / Cash sale (2019)

Cash application for contract accounting (2020)

Q2O Prediction One Single InvoiceSales Force Support

Create sales order Fiori App (2020)

Delivery delay prediction major

Quotation to order conv. rate predictionmajor

Sales Force Support1new

new FPS1

1 via SAP S/4HANA for Customer Management add-on

Add. Sales KPIs, e.g. lost quotation value (2019)

Roadmap*


SAP S/4HANA Service

Integration with Mobile Field Service Mgmt. (2019)

ML email & ticket categorization***

Combine the Power of CRM & ERP-CS within S/4HANA

In-House Repair & Complaints (2020)Service Plans (2020)


Migration support (2019)

Claims (2020)

Multichannel Customer Interaction Mgmt.1

Ad hoc expense items1 BRIM: Order Mgmt. **1

Quotation with Product Bundles1

IN-HOUSE REPAIR MANAGEMENT

SERVICE PARTS FULLFILMENT

SERVICE PARTS WAREHOUSING PARTS &

FULLFILMENTSERVICE

FULLFILMENT


Business Areas

TECHNICAL ASSETS, STRUCTURE, AND

HISTORY

SERVICE TASK LIST & CATALOGSC

SERVICE CONTRACT & WARRANTY MGMT

CLAIMS, RETURNS, REFUNDS MGMT. C

& IN-HOUSE REPAIR MGMT. C

SERVICE OPERATIONS & PROCESSES ( C)

SERVICE MASTER DATA & AGREEMENT MANAGEMENT (

C)

SERVICE PARTS MANAGEMENT

COMPLAINTS MGMT

SERVICE REQUEST & COMPLAINTS MGMT.C

SERVICE & MAINTENACCE PLAN SERVICE CONTRACT &

WARRANTY MGMT.

SERVICE ORDER MGMT. & BILLING &

FULLFILMENTSERVICE DISPATCHING AND

SCHEDULING

CUSTOMER ENGAGEMENT, PACKAGED SERVICE OFFERINGS & SERVICE DISPATCHING AND

SCHEDULINGC

Customer Management: Service Service Order Quotations Service Request

Integration with Advanced Variant Configuration1new

Roadmap*

major

new New FPS1

Improved Support for Usage-Based Business (2020f)

1 Available via SAP S/4HANA for Customer Management

Warranty (2020) Service Projects (2020) Business Solution Contract (2020f)

Service Parts (2021)


Our Guiding Principles

AI/ML | IoT | Analytics

Intelligent Suite

CustomerExperience

Manufacturing& Supply Chain

Digital Core PeopleEngagement

Network & SpendManagement

Digital Platform

DataManagement

CloudPlatform

Intelligent Technologies

One Integrated, Scalable, Modular Cloud SuiteAll Industries | Beautiful User Experience

Embedded Intelligence everywhereNew value | Better business outcomes

ONE Product Architecture & Digital PlatformCoherent | Simple | Modern

Operational ExcellenceHighly Available | Highest Security Standards

Simple AdoptionFunctionality | Tools | Services


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


CorporateTier 1

SAP CloudEcosystem

SubsidiariesTier 2

SUB 1

HQ

SUB 2 SUB 3

• Rapid time to value and lower cost to maintain

• Taking real-time insights into action• Process consistency• Easy to change, simple to extend• Easily duplicated / “templatized” innovations• Access to other SAP Cloud solutions

Clo

ud o

r O

n-Pr

emis

eC

loud

• Flexibility for customer innovations and business models

• Competitive advantage-specific processes

• Most powerful tools for operations and administration

• Integration with 3rd party solutions

Common│ Data Model │ User Experience │ Data entities │ Analytics │

Full powerful

SAP ERP

Light, quick, simple

Cloud Connector

S/4HANA Central Finance

Easy choice for a powerful combination

Two-Tier ERP Approach with SAP S/4HANA Cloud

19CONFIDENTIAL© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ 19Internal© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

What we achieved last year 2018

2.730+Customers LIVE

5.200+Customers in Project

10.500+S/4HANA Customers


What is new? I SAP Tools and Resources AvailableAccelerate SAP S/4HANA Adoption by SAP ERP Customers

• Custom Code AdaptationABAP Test Cockpit

• Imporved Conversion Process Reduce efforts for main simplifications

• Improved Data MigrationMigration Cockpit

• Reduced integration effortsIntegration Content Advisor

• Downtime Optimized Conversion Software Update Manager

• Leverage StandardSAP Model Company for the Intelligent Enterprise

• SAP Activate Deployment Method

• SAP S/4HANA Product Roadmaps (link)

• SAP Best Practices Explorer (link)

• SAP Fiori Apps Library (link)

• SAP Readiness Check for SAP S/4HANA (link)

• Scale available Skills through education and partner engagement

• SAP Transformation Navigator (link)

• Business Scenario Recommendation (link)

• Next Generation Benchmarking and Value Manager (internal link) –

• SAP Solution explorer provides solution scope details per LoB

• Industry Door Openers (link)

• SAP S/4HANA Adoption Starter (SAP Service Offering)

• SAP Business Value Advisor (link)

• SAP S/4HANA Industry & LoB Value Whitepapers (link)

• SAP S/4HANA Customer Success Flipbook (link)

• SAP S/4HANA Digital Concierge (link)Custom Resources Tailored to You:

Define your strategy Make the case Consider the options Deliver your futurePlan the engagement

and get executive buy-inWhere and how will we

realize our ROI?What is our plan for

deployment?Which best practices

ensure success?

https://www.sap.com/services/implementation/preconfigured-industry-solutions.html

https://www.sap.com/products/roadmaps.products-solutions.html

https://rapid.sap.com/bp/

https://fioriappslibrary.hana.ondemand.com/sap/fix/externalViewer/

https://help.sap.com/viewer/p/SAP_READINESS_CHECK

https://go.support.sap.com/transformationnavigator/

https://www.s4hana.com/

https://vlm.cfapps.eu10.hana.ondemand.com/index.html

https://solutionexplorer.sap.com/solexp/ui/

https://jam4.sapjam.com/groups/M7SoNn1qwTvi6Fs9q5rRt1/overview_page/aIJj9aceiAUr4YdTD3JOzU

https://news.sap.com/2018/10/sap-s4hana-adoption-starter-engagement-launch/

http://impact.s4value.com/

https://www.sap.com/products/s4hana-erp/features.html

http://www.saps4hanahub.com/i/661906-s4hana-customer-stories-oct-2018/0

http://digitalconcierge.saps4.me/

Documents

SAP S/4HANA Strategy · *This is the current state of planning and may be changed by SAP at any time without notice -**Additional license -***Additional installation and license

SAP S/4HANA Strategy · This is the current state of planning and may be changed by SAP at any time without notice -Additional license -Additional installation and license