Telco Days Live Intelligent ERP for Telecommunications

Telco Days LiveIntelligent ERP for Telecommunications

SAP Telecommunications Business Unit

November 2020

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ 2

Legacy ERPs are creating Barriers in front of Telcos to Success

Backward-Looking Orientation

Complexity

Everywhere

Partially-Connected

Value Chain

Manually-Driven

ProcessesBatch Latency


Run ahead with Intelligent ERP

Act in Real Time

Flexibly Transform

Business ModelsRelentlessly Deliver

Customer Value

Naturally Change

How Work Gets DoneConfidently Predict

the Future


Why customers move to SAP S/4HANAGartner-based groups of reasons to transform with SAP S/4HANA

• Customers with high M&A activity

• Customers in industries with high degree of changes

• Move to smart products

• Move to subscription and new pricing mechanisms

• New segments, including transition B2B-B2C

• Improvement of business processes in general and in

particular LOBs – e.g., sales, production, finance, …

• Consolidation of applications

• Reduction of custom development

• Replace obsolete legacy solutions

ENTERPRISE

TRANSFORMATION

EXTENDED

ENTERPRISE CORE

NEW

ENTERPRISE CORE


Why Telco customers choose SAP S/4HANA?

Simplify

landscape Consolidate

across multiple

business

Intuitive user

experienceTransform

finance

Increase asset

visibility

Billing and

Finance

Convergence

Proven Success

from early

adopters

Model Company

for Telco


Simplify landscapeS/4HANA Landscape Consolidation Example

1. Traditional business suite has a core ERP landscape

running on legacy databases plus maybe dozen of other

applications

2. S/4HANA’s simpler data model enables you to move

applications back to the core.

3. SAP cloud solutions enables companies to consolidate

even more resulting in a simpler landscape

1 2

3

3

SAP C/4HANA

1

2


±15

±6

±3

Finance Scope

Core Finance Procurement Employee Expenses Projects Treasury PPMEnterprise / Management

ReportingPB&F

Finance Scope

Month end

Asset Accounting

Revenue Accounting

Cash and Banking

Accounts Payable

Vendor Management

Requisitioning

Purchase Orders

Travel Management

Claim and Pay Expenses

Project Creation and Maintenance

Resource allocation

Costing & Accounting

Project Capitalisation

Bank Account Funding

Currency risk Management

Project Hierarchy Creation

Resourcing

Forecasting

Project Time recording

Project Scheduling

Finance Operational

Management Accounting

Budget Creation and Creation

Forecast Creation and Maitenance

UK System Landscape

Non UK System Landscape

SAUs System Landscape

eJV OBOE

IGNP

TP

Period

EndScorpio

Central

LedgerTITANMarkview

COBRA

OBOESupplier

Portal

Camera Order IT

Vendor db

OBOETravel

Apps x5

AirPlus Trainline

Boundary Processes

GFP Markview

Casyio

Ireland

INS Navision

ITS SageEE SAP

Payroll Billing

Other

eOrg

eOrg

FBI

FBICTU

Payments

Collections Collections

OB10

OB10

Interco

TITAN

TITAN

ARM

ARM

One IT

Clarity

One IT

ClarityCo.Ind

iMais

TITAN Settlement

1C Etafi

Ora Spain EMatcher Eflow

SCM

Great Plains

Engage Navision

Stemmer Diamant

INS Navision

ITS Transact

Synchro IOTA

ITS SageEngage Fusion

ROI

Clarity

Epicor

TAPS

CORD

DRM

Amethyst

x3

Foresight FRT

LRIC CDR

CID IPL ODC

Retail

WLR3BAW

CID

CADW

CADW

CSCS

CTCS DPA

EMDW GIR

Exactus

Reference Data

Competition Finance

Archive

Refine

PB&FPowerhou

se

GCS

360

Leased Lines

CMAS

Circuiti

GTETC Matching6

BCAT

PPM

MethodPFC

PPM

Tools

Tax

TP

IOTA

SCMOrder

ChannelsWFMT NJR

Debt Management

Clarity

PFC

TAPSROI

Clarity

One IT

ClarityROI BEST

Statutory/Reg Reporting

Business Insight

Evaluation and Commentary

HR

Project Billing

Sourcing

Contract Management

GFP Ireland

Spain SAP

Spain

SAP

Currency risk Management

Insurance Claim Management

FX Rate Management

Finarc

Arrakis

Contaplus

Italy

Oracle

Spain

Oracle

FX All WebApps

Ireland JD

Edwards

Max

Credible

VOIT

Fleet

Banks

Vendors

HMRCEngineering

systems

BT Italia

Contabilità

Noetix

GS HFMs

MR Cubes

MR

analysisOverlays

GDW

GDW

GDW

IIIE OAM

Fiscal

Model

CAPEX

Deal

CubesEarned

Cubes

Eliminatio

ns

Group

Volumes

GS

overhead

Hobnob

Margin

Analysis

Revenue

Forecast

PROBE

Revenue

Cubes

TLR

SCARS

Wholesale

CCP

UK

Planning

Resource Management

EEHorizon

DPA

TLR

GDW

GS HFMs

GS HFMs

GS HFMs CADW

• Given the largest systems that are being replaced,

likely 20-30X reduction in master data replication

• Enable end-to-end processes without process breaks and latency

• Eliminate reconciliation and (manual) rework

• Simplify reporting

Migration to a Global single instance of S/4HANAhas potential to reduce number of a major Telco company applications by

~80%

Before After

~100 ~25

Business

Networks

• With future programs like Supply Chain, further boundary

systems could also be decommissioned – due to capabilities

integrated by design in S/4HANA


• Not only will interfaces between systems be reduced, but also

interfaces within systems

• The reduction of interfaces into S/4HANA will have a significant

impact on the transformation & future maintenance complexity,

cost & time

• Removing brittle interfaces enables true end-to-end business process

Migration to a Global single instance of S/4HANA reduces interfaces in a major Telco company by ~75%

Before After

~120 ~30


Consolidate across multiple businessCo-existence of both telco & retail solutions in one S/4HANA instance

SAP HANA

ERP(Retail)

Legacy

RDBMS

SAP IS Retail

for Merchandise

Management

• Landscape simplification with telco billing (RM-CA) & finance/asset management &retail solutions co-exist in one S/4HANA

instance

• RM-CA on S/4HANA to be natively integrated with S/4HANA Finance, Sales and SAP Revenue Accounting and Reporting

for IFRS 15 compliance

• Improved scalability & performance for high volume solutions like RM-CA to run on HANA

ERP(FI + EAM)

Legacy

RDBMS

Finance and

Asset

Management

ERP(BSS)

Legacy

RDBMS

SAP IS Telco

for Revenue

Management &

Contract Accounting Intelligent ERP Platform


Telco Retail Supply ChainManaging both Forward Supply Chain and Reverse Logistics

Same Day Delivery

Buy On-line Pickup

In Store

Marketplace

Consistent Cust.

Experience

B2B & B2C Serial #

Tracking

Reverse Logistics

Vendor Managed

Inventory

Service Provider

Outlet

Suppliers Service Provider

Warehouse

3rd Party

Warehouse

Service Provider

Logistics

3rd Party

Logistics

Partner Outlet

Pickup/Drop off

Point

Customer reviews inventory and decides on pickup vs.

delivery options

Visibility on Inventory

Visibility on Demand

Visibility on Distribution

Optimize Distribution Cost

Improve Delivery Time

Improve Customer Satisfaction

Customer

Store / Outlet

On-line

Call Center,

etc.Pallet Level Device Level

Customer

Refurbish

Resell

Delivery and

Return Services

Supply Chain Planning & Execution

Omnichannel Commerce & Engagement


SAP Retail Functionality within S/4HANA


Billing and Finance ConvergenceThe business models are taking shape already with current 4G

Device,content, software

providers

merchantsResidential customers

Business customers consumers

automotive

manufacturers Public services

utilitiessubcontractors

Network share

MVNOs

Telco

Telco

Telco

Network slicing

B2X

B2B2X

Agent

medical

Telco

Supply chain

Wholesale

Billing on Behalf of (optional)

app developers


Why is Partner Settlement important?

Digital content

Merchant settlement

Apps $-

$10

$20

$30

$40

$50

$60

$70

$80

0 1000 2000 3000 4000 5000

To

tal C

ost

Block pricing

$-

$10

$20

$30

$40

$50

$60

$70

$80

0 1000 2000 3000 4000 5000

To

tal C

ost

Tiered pricing

Flexible settlement models

Multi-sided business

models rely on partnersCapabilities required

AR AP

Single converged AR + AP

Bank routing of payments


Financial convergence with billing systems

Finance

SAP Convergent

Charging

SAP Convergent

Mediation

Rating & Charging

ARInvoicingMediationBilling

System #1

Rating & Charging

ARMediationBilling

System #2

Rating & Charging


System #3

New Services

Rating & Charging


System #4

SAP Customer Financial

ManagementSAP

Convergent

Invoicing


* Additional License -** Additional Installation and license – c(Partially) Compatibility Scope

Analyze Clearing Locks Business Partner Financial OverviewAnalyze Unbilled Items

Subscription Order

Management

Business Capabilities:

Credit and

Collection

Management

Receivables Mgmt.

and Payment

Handling

Convergent

Invoicing

SAP Billing and Revenue Innovation Management enables customers to monetize subscription and usage-based business models with agility, and makes the

entire revenue management process more transparent with scalable, flexible, and highly-automated software for billing, invoicing, and revenue management.

Subscription order management can bundle physical products with various one-time, recurring services and usage fees into one subscription contract. In the

downstream processes Convergent Invoicing can be issue one invoice for any billing content either generated in the subscription management processes or

sent from any SAP or non–SAP pricing and charging system.

The Contract Accounting (FI-CA) sub-ledger of BRIM is the first choice subledger in SAP S/4HANA for those enterprises with high scalability and performance

requirements, with specific requirements in business rules-based flexibility and high automation for unattended operations of all revenue processes. Contract

accounting (FI-CA) is natively integrated with S/4HANA Finance, Sales and SAP Revenue Accounting and Reporting for IFRS 15 compliance.

SAP S/4HANA Billing and Revenue Innovation Management (BRIM)

Financial

Customer Care

Pricing and

Charging*

* not part of S/4HANA

Contract Accounting (FI-CA)

https://solutionportfolio.net.sap/industry/HANAOP/object/089E017A62AB1ED8ABF375E777C640CE

https://solutionportfolio.net.sap/industry/HANAOP/object/089E017A62AB1ED89FA8378BF74480CA

https://solutionexplorer.sap.com/solexp/ui/vlm/is_s4hana_onpremise/vlm/is_s4hana_onpremise-ind-is_s4hana_onpremise/is_s4hana_onpremise-bpr-575,is_s4hana_onpremise-e2e-1532,is_s4hana_onpremise-ist-3421

https://solutionportfolio.net.sap/industry/HANAOP/object/42F2E964F4E71ED89EF482450D6620CC

https://solutionportfolio.net.sap/industry/HANAOP/object/089E017A62AB1ED89FA8378BF74480CA

https://solutionportfolio.net.sap/industry/HANAOP/object/089E017A62AB1ED8ABF375E777C640CE


Model Company for TelecommunicationsBest Practices for an S/4HANA Project

18+ available & planned IndustriesTelecommunications

+


Increase Asset Visibility

Plan

Deployment

Procurement

MaintenanceDecommission

Design

▪Maintenance strategies and tasks

▪Spare parts recommendation

▪Network asset information with common template

▪Documents and drawings

▪Role-based UI for business users

Digital twin of network

assets

Network

equipment

providers

Granular asset performance

with both operational and

financial views

Subcontractors

Tower

owners

Collaborative planning and

execution with vendors and

subcontractors

Intelligent reconciliation

asset with one central

view

Intelligent monitoring and

alerts for both passive and

active network equipment

A common view of network assets


Value of integrated Asset Management within S/4HANA

▪ Long Term Investment & Portfolio Planning

▪ Risk Assessment , Prioritization

▪ Task & Resource Scheduling

▪ Plan vs. Actual Tracking

▪ Resource Balancing

▪ Vendor & Contract Management

▪ Parts Sourcing Strategies

▪ Automated Sourcing

▪ Optimized Inventory Levels

▪ Skill Talent Pool

▪ Roster & Shift Planning

▪ Work Assignments

▪ Performance Management

▪ Employee Self Service

▪ Cost Controlling

▪ Postings to GL

▪ Capital & Operating Budget Management

▪ Fixed Asset Integration

▪ Accounts Payable

▪ Accruals & Commitments Mgt

▪ Evaluated Receipts Settlement

▪ Operations

▪ Planning

▪ Execution

▪ Corrective / Preventive / Condition Based / Predictive

▪ Work Clearance Management/ Safety Permit

▪ Environment, Health & Safety Management

Total value potential can only be achieved by seamlessly

integrating all critical business processes

Project Management

Inventory & Procurement

Work Management

Financials

Human Resources

EAM


Transform finance

• Business steering with predictive insights

• Accelerated closing

• Continuous accounting

• Dynamic financial planning

• Automation of finance operations

• Total spend management

• Working capital optimization

• Embedded risk and compliance

• Real-time business simulation

• Granular profitability analysis with SAP

Customer Profitability Analytics

SAP S/4HANA Finance

Accelerator for Finance TransformationExample: Soft Financial Close Anytime


Transform financeWhat intelligent innovations means for finance as they emerge

FINANCE

Financial planning and analysis

Accounting andfinancial close

Treasury management

Financial operations

Governance, risk & compliance

▪ Predictive Planning,

Budgeting and

Forecasting

▪ GR/IR

Reconciliation

▪ Enhanced Closing

Automation

▪ Cash and Liquidity

Management

(Increase the

accuracy of liquidity

forecast)

▪ Cash Application

▪ Remittance Advice

Extractor

▪ Lockbox

▪ Service Ticket

Intelligence (SSF)

▪ Tax compliance

▪ Business Integrity

Screening

▪ Predictive

Detection Methods

and Risk Scores

SAP Conversational AI – one supporting digital assistant across all areas

SAP Intelligent Process Automation (IRPA)


SAP’s Vision of Finance TransformationFrom daily routine to supporting growth and forward looking insight

Running

the Business

Insights

Operations

Deliver

Insights

Operations

Support

Strategy

Operations

Backward

looking

Real-time

Insights

Forward

looking

Predictive

Insights

Real-time

Insights

Backward

looking

Predictive

Insights

Advanced

Analytics

Automation

Cost-efficient

and compliant

finance processes

Proactive

business

steering


Intelligent RPA Machine Learning (ML)

Chatbots to interface and hand-over to

execution bot

Multiple bot workflows for execution

(attended + unattended)Self-learning bots with dynamic

adaptability

Interact Execute Optimize

Performing Tasks Learn from exceptions

Combine Intelligent Technologies for End-to-End Automation

SAP Intelligent Business Process Management


How is SAP Intelligent RPA different

Automating S/4HANA – 30+ bot samples

to implement Best Practices

• Finance

• Sourcing & Procurement

• Sales

• Production

• Professional Services

• Data Management

• …

Browse

https://rapid.sap.com/bp/#/browse/categories/sap_s%254h

ana/areas/cloud/packageversions/IRPA_S4HANA

https://rapid.sap.com/bp/#/browse/categories/sap_s%254h

ana/areas/on-premise/packageversions/IRPA_S4HANA

https://rapid.sap.com/bp/#/browse/categories/sap_s%254hana/areas/cloud/packageversions/IRPA_S4HANA

https://rapid.sap.com/bp/#/browse/categories/sap_s%254hana/areas/on-premise/packageversions/IRPA_S4HANA


Single Entry Point

• The SAP Fiori launchpad will be the single entry point to access all apps

Domain Specific Infos and Actions

• Users will quickly get an overview of what needs their attention with Overview Pages, List Reports and Work Lists, and trigger quick actions or

drill down to the next level of detail

Enter Details and Explore In-Depth▪ Key and differentiating use cases will be re-imagined with the SAP Fiori

user experience

▪ All “classic” applications will have the SAP Fiori visual theme

Intuitive user experience

SAP Fiori

The User Interface of S/4HANA

SAP Conversational AI

Digital Assistant across all Products and

Solutions for S/4HANA

Business Context Awareness• Understanding the business context, and pro-actively suggesting solutions

using predictive functionality

Conversational UI• Using Natural Language Processing functionality with a focus on the

next-gen UX to create a human-like experience

Cross Applications• Allows seamless transition across platforms; start a task on a mobile device

and continue later, on a desktop or vice versa

Self Learning• Using machine learning functionality to gain knowledge based on historic data,

experience, and take action in response to new or unforeseen events

Simple Access to Enterprise AI Platform• Integration to SAP and non-SAP solutions; simple access to natural language

processing and machine learning functionality via APIs


Proven Success from early adopters

• Shorter closing period by up to 2 days

• Greater visibility into financial data

• More flexibility in business operations

• Simpler processes eliminating

unnecessary workload

Migration from ECC to S/4HANA,

increasing efficiency and performance

of processes, reducing operational

costs by standardizing processes per

SAP best practice

Live since 2018.01 Live since 2016.06 Live since 2019.04

Transition from multiple ledgers to an

integrated business with one software

environment S/4HANA finance and

speed up mergers and acquisitions

• First implementation project SAP

S/4HANA in Russia

• 9000+ business users

• Enlarged scope including

maintenance & repairs, investment

to retirement

Telecom Argentina implemented SAP

S/4 HANA Central Finance Module

together with Central Payments. This

empowers Telecom Argentina to

achieve a standardization of accounting

and centralization of payments and

position themselves strategically as an

innovative enterprise.


Industry Momentum


S/4 HANA - Adoption strategies in Telco industry

Greenfield Brownfield Get ready for the Intelligent Suite

Parent company

ParentCompany

Acquisitions

Independentsubsidiary

Digital Core

People

Legacy Core

Network &

Spend Mgmt

Supply

Chain

Customer Experience

Initial roll out in individual

subsidiary as test bed

Simplify / Rationalize / Consolidate

complex legacy environments

Increase consumption of Cloud

on the ‘edge’ & simplify core


Customer-centric tools & services at each step Key examples

SAP Readiness

Check

Learn the technical requirements

and actions for system conversion

to SAP S/4HANA.

Based on configuration and usage

data for customers already on SAP

ECC 6.x

Value Management Center

Personalized L1 Outside-In Point

of View and Business Value

pitch delivered at scale by IVA.

Business benefits based on

Outside In Analysis, BSR 2.0.

Findings industry-specific

benchmark improvements;

additional value benchmarks

available at http://s4value.com.

SAP S/4HANA: Business

Scenario Recommendations

(BSR 2.0.)

Identify the business processes

you can improve and discover

new business capabilities.

An 80–100 page detailed initial

POV delivered as a self-service

report within 5 days, involving 30

minutes of customer investment

SAP Transformation

Navigator

See the SAP S/4HANA road map

for each component in your current

landscape.

Based on current SAP product

usage or capabilities your

organization wants

http://s4value.com/

Thank you.

SAP Telecommunications Business Unit