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The intricacies of SAP’s Digital Access License Model Mark Hughes – SAP Global License, Audit & Compliance 26 May 2020

The intricacies of SAP’s Digital Access License Model

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Page 1: The intricacies of SAP’s Digital Access License Model

The intricacies of SAP’sDigital Access License Model

Mark Hughes – SAP Global License, Audit & Compliance

26 May 2020

Page 2: The intricacies of SAP’s Digital Access License Model

CONTENTS

Ancient history

Recent times

Status quo

Looking ahead

One step at a time

Page 3: The intricacies of SAP’s Digital Access License Model

3© 2020 SAP SE or an SAP affiliate company. All rights reserved.

SAP Basis SAP Web Application ServerSAP Basis SAP BasisSAP Basis

1997 (25) 1998 1999 2001 2002

◼ General availability

◼ SAP Retail integrated in R/3

Standard Release 4.0◼ Worldwide Rollout

◼ Mass Maintenance

◼ Value & Quota Scales

◼ Competitor Pricing◼ Pricing – enhanced function

◼ Layout Maintenance

◼ Space Management interface

◼ Additionals Integration

◼ Allocation – enhanced function

◼ Promotion – enhanced function

◼ Load Building◼ Merchandise Distribution (Cross Docking & Flow Through)

◼ Vendor Managed Inventory

◼ Store Returns

◼ Perishables

◼ SAP Online Store

◼ Warehouse Mgmt. Integration◼ Agency Business

◼ RIS – enhanced function◼ First Customer Shipment

◼ Retail Release 1.2B

◼ Easy Access, Screen redesign

◼ Fast Entry Screen

◼ High Performance Retail (HPR)◼ Promotion – enhanced function

◼ Bonus Buy

◼ Allocation – enhanced function

◼ Markdown – enhanced function

◼ Logistical Variants

◼ Product Catalog enhancement

◼ Competitor Pricing – enhanced function◼ Market Basket Pricing

◼ Replenishment Workbench

◼ Additionals Improvements

◼ Merchandise Distrib. – enhanced function

◼ Perishables – enhanced function

◼ Merchandise & Assortment Planning (MAP)◼ MAP Integration to Promos & Allocations

◼ Sales Order Optimization

◼ Layout & Space Mgmt. interface Optimiz.

◼ Vendor Managed Inventory – enh. function

◼ Logistics Invoice Verification

◼ Subsequent Settlement – enh. function

◼ POS Inbound & Outbound Optimization◼ Logistics Execution System – enh. function

◼ Handling Units

◼ Multi Channel Retailing

◼ Business Information Warehouse (BW)

◼ High Performance Retail fully integrated

◼ High Performance Retail Assortment List

◼ Store and Assortment Management◼ New Mass Maintenance Tool

◼ Style (Variant) Matrix

◼ MAP – enhanced function

◼ Prepack Allocation Planning

◼ Markdown Planning – enhanced function

◼ Allocation – enhanced function

◼ Allocation Strategy (using BW)◼ Promotion – enhanced function

◼ Replenishment Workbench Enhancements

◼ Multi-Step Replenishment

◼ AHD / PDF in Replenishment

◼ Planned Delivery Time

◼ Order Cancellation◼ Space Management – enhanced function

◼ Layout Workbench – enhanced function

◼ Merchandise Distribution – enhan. function

◼ Logistics Execution System – enh. function

◼ Task and Resource Management

◼ Perishables – enhanced function

◼ Global Trade◼ Retail Method of Accounting

◼ Consumer Decision Tree

◼ BADI’s (Business Add-Ins)

◼ Business Configuration Sets

◼ BW Retail Content – enhanced function

SAP R/3

Enterprise

4.7 Retail 1.2B

SAP Retail Store

◼ First Version available

SAP Retail Store

◼ PDC Processing in GR, Store Order

◼ Sales Order – enhanced function

SAP Retail Store

◼ PDC support for core processes via XML

◼ XML-based POS data exchange

◼ Creation of Physical inventory documents

◼ Expense Invoice and Cash Balancing

◼ Sales Order – enhanced function

Evolution and Roadmap to Competitive Advantage

Page 4: The intricacies of SAP’s Digital Access License Model

4© 2020 SAP SE or an SAP affiliate company. All rights reserved.

2003 2004 2005

SAP NetWeaver ‘04 SAP NetWeaver 7.0SAP NetWeaver ‘03

◼ Pricing – enhanced function

◼ Promotions – enhanced function

◼ Stock Transfer Consignment◼ Allocation based on Shelves

◼ Cross-Docking – enhanced function

◼ Authorization for Layout Workbench

◼ PRICAT Data Exchange with User Specific Fields

◼ Complaints Processing in Billing

◼ IDoc Copy Management

◼ Store Goods Receipt – enhanced function◼ Planned Delivery Time – enhanced function

◼ Logistics Invoice Verification – enhanced function

◼ BW Retail Content – enhanced function

◼ Enhanced Order Optimization

◼ Agency Business – Enhancements

◼ Assortment Planning

◼ Operational Assortment Planning

◼ Purchase Order Processing

◼ Order Manager (Workbench)

◼ Open-to-buy (OTB)

◼ Procurement Controlling

◼ Consignment / Franchise

◼ Slow Seller Management

◼ Markdown Planning

◼ Determine Markdown Proposals

◼ End-to-end Process of Consignment & Franchise SKU

◼ Specify proposed Markdowns in the PPW

◼ Price Planning Workbench (PPW)

◼ Set proposed Markdowns in the PPW

◼ Create manual Markdowns in the PPW

◼ Create Promotions from PPW

◼ PRICAT-Inbound – enhanced function

◼ Master data

◼ Article Hierarchy

◼ Department as Profit Center (Shop-in-Shop)

◼ Article List

◼ Replacement / Follow-up Articles

◼ Enhancements in Article Master

◼ Discontinuation / Archiving

SAP ERP

6.0(ECC 6.0)

mySAP ERP2004

mySAP ERP2005

SAP SRM

◼ SAP Master Data Management SAP MDM

SAP BW◼ SAP Merchandise and Assortment Planning

◼ SAP POS Data Management

◼ Multi Channel Retailing SAP CRM

◼ SAP Event Manager SAP SCM ◼ SAP Forecasting and Replenishment

◼ Strategic Sourcing

◼ SAP Workforce Deployment ◼ SAP Workforce Deployment

SAP SCM

SAP CRM SAP CRM

SAP Retail Store

◼ Physical Inventory for Open Stores

◼ Purchase Order & Returns◼ Ruling Prices (Daily Pricing)

◼ Display Order Rhythms

◼ Enhancements in Search Function

◼ Storage Location Handling

SAP Retail Store

◼ Article Master Data

◼ Display, Change and Create (Park) ◼ Vendor Master Data

◼ Display, Change and Create

◼ Goods Receipt Processing

◼ Support of Direct Store Receiving Process

◼ GR for Consumable SKU at One Cost Center

◼ Incoming Invoice

◼ Reference to GR, PO and without Reference◼ Perform Plausibility Check

◼ Credit Memos with and without Return Items

Evolution and Roadmap to Competitive Advantage

Page 5: The intricacies of SAP’s Digital Access License Model

5© 2020 SAP SE or an SAP affiliate company. All rights reserved.

◼ Global Data Synchronization

◼ Demand Management Connectivity Kit

◼ POS Connectivity Kit

◼ Global Data Synchronization

◼ Replacement products in purchasing

◼ Goods receipt capacity check◼ Enhancements in master data,

allocations, seasonal procurement

◼ Complaints processing

◼ Retail Method of Accounting

◼ Perishables Procurement

◼ Personal object work lists (POWLs)

◼ Enhanced POS Integration◼ Store Connectivity (e.g. PCI, IDoc size)

◼ New Bonus Buy

◼ Enhanced Article Search

◼ Improved maintenance of direct store delivery relations

◼ Integration/Interface SAP PMR – SAP ERP

◼ Enhanced integration of in-store food production

◼ SAP EWM integration to support merchandise distribution ◼ Retail Method of Accounting/ Cost Allocation

SAP

ERP 6.0EHP 1

2006 2007/2008 2009/2010

SAP NetWeaver 7.0

SAP SCM ◼ SAP Forecasting and Replenishment

SAP Demand

Mgmt

SAP Store

Solutions

◼ SAP Client/Server and Enterprise POS

◼ SAP POS Services (Express Returns,

Stored Value, EFT Services, etc.)◼ SAP Allegiance (Customer Loyalty)

◼ SAP FraudWatch (Loss Prevention)

◼ SAP Workforce Management (Stand-Alone)

◼ SAP Price, Promotion and Markdown Optimization

◼ SAP Promotion Merchandise Layout

◼ SAP Master Data Management (Retail Content) SAP MDM

SAP

ERP 6.0 EHP 2/3

SAP Store

Solutions

SAP BW◼ POS Analytics

◼ Stock Ledger Reporting

◼ SAP Merchandise & Assortment Planning

◼ SAP POS

◼ SAP Enterprise POS

◼ SAP Workforce Management

SAP NetWeaver 7.0

◼ SAP Forecasting and Replenishment

◼ SAP EWM, Order FulfilmentSAP SCM

SAP NetWeaver 7.0

SAP Store

Solutions

◼ SAP POS

◼ SAP Enterprise POS

SAP BW◼ Retail Method of Accounting

◼ SAP Loss Prevention Analytics

◼ SAP Merchandise & Assortment Planning

SAP ERP 6.0

EHP 4/5

SAP Demand

Mgmt

◼ SAP Price Optimization Enhancements

◼ SAP Promotion Management for Retail

SAP CRM

◼ SAP Transportation Management

◼ SAP EWMSAP SCM

SAP Retail Store

▪ Mobile In-store Inventory Mgmt

▪ 24 Hours Inventory Counting▪ Inventory Lookup (enterprise Service)

▪ Store Fresh Item Partner Integration

◼ Loyalty Management

SAP Instore-MIM (former SAP Retail Store)

▪ UI harmonization and usability improvements

▪ Product Look-up▪ Usage of POWLs

Evolution and Roadmap to Competitive Advantage

Page 6: The intricacies of SAP’s Digital Access License Model

6© 2020 SAP SE or an SAP affiliate company. All rights reserved.

◼ Vendor fund settlement within Compensation Management – Contract Management

◼ SAP Instore-MIM – Further Enhancements

◼ Trade, Invoice Forecasting

◼ Advanced Returns Management 2

◼ Enhancements SAP PMR 7.1 – Inbound Promotions 2 (ERP-related)

◼ Enhancements SAP F&R 5.2 – Connectivity to F&R 5.2 (ERP-related)

SAP

ERP 6.0 EHP 6/7 (SPs)

SAP NetWeaver 7.0

SAP SCM

◼ SAP F&R 5.2 and SAF Integration

◼ Enhancements SAP F&R 5.2 – Connectivity to F&R 5.2 (ERP-related)

◼ Promotions integrated with Procurement and Logistics

◼ EWM enhanced for Retail

SAP

DemandMgmt

SAP Store

Solutions

◼ SAP POS 2.3

◼ Enhancements SAP PMR 7.1 – Inbound Promotions 2

(ERP-related)

SAP BW◼ SAP Retail Merchandise Planning (RDS)

◼ Loss Prevention Analytics

◼ Customer Segmentation

◼ Social Media Analytics by Netbase

◼ Precision Retailing

◼ Mobile Device Management (Afaria)

◼ Talent Management (Success Factors)

Cloud

◼ Sybase Unwired Platform

◼ Mobile Talent Management & HCMMobility

SAP NetWeaver 7.3

SAP HANA

◼ SAP BW on HANA

◼ SAP Retail Merchandise Planning (RDS)

◼ SAP POS Data Management (optimized by HANA)

◼ On-Shelf-Availability Analysis

SAP CRM

◼ SAP CRM 7.0

◼ Loyalty Management (POS Integration)

◼ SAP Web Channel Experience Management 1.0

◼ SAP Retail on HANA

Evolution and Roadmap to Competitive Advantage

2011 2012 2013

SAP Retail on HANA

SAP NetWeaver 7.4+

Page 7: The intricacies of SAP’s Digital Access License Model

7© 2020 SAP SE or an SAP affiliate company. All rights reserved.

Evolution and Roadmap to Competitive Advantage

◼ IS Retail on HANA optimized processes

◼ UX improvements (Fiori)

◼ Customer Connect (cont. improvements)

◼ New IDoc Monitor

◼ Article/ GTIN Mass Maintenance and Price Calculation

import from Spreadsheet (xls/csv) or Clipboard

◼ GDS – Global Data Synchronisation Enhancements

SAP NetWeaver 7.4+

SAP Store

Solutions

◼ SAP Workforce Management 4.0

◼ Mobile app for store associate

◼ Mobile app for store manager

SAP NetWeaver 7.4+ SAP NetWeaver 7.4+

SAP CRM◼ Hybris acquisition

2016 and beyond

SAP

ERP 6.0 EHP 7

(SPs)

◼ SAP Customer Activity Repository 1.0

◼ SAP Promotion Management on CAR

◼ SAP Audience discovery and Targeting (segmentation)

◼ IS Retail on HANA with optimized processes

◼ Customer Connection (continuous improvements)

◼ UX improvements (Fiori)

◼ GS1 Enhancements

◼ Advanced Return Mgmt

◼ Product Recommendation

◼ SAP F&R on HANA and optimization

◼ HEC – HANA Enterprise Cloud

◼ SAP Fashion Management 1.5 – first release (SAP FMS)

SAP HANA

SAP HANA

SAP CRM◼ Hybris Commerce

◼ Hybris Integration

SAP

DemandMgmt

◼ SAP PMR 8.0 (relational data base)

◼ Demand Planning

◼ UX Fiori

◼ IS-Retail on HANA

◼ SAP Fashion Management 1.6

(Manufacturing)

SAP HANA

◼ HEC – HANA Enterprise Cloud

◼ Ariba

◼ gicom SAP CLOUD

◼ SAP Hybris Marketing

◼ HEC – HANA Enterprise Cloud

◼ Mobile Instore MIM – Fiori Apps

◼ Customer Connection

Enhancements SAP

ERP 6.0 EHP 7 (SPs)

SAP

ERP 6.0 EHP 7

(SPs)

SAP Store

Solutions

◼ SAP POS by GK

◼ SAP Customer Activity Repository 2.0

◼ SAP Merchandise Planning on CAR

◼ SAP Assortment Management on CAR

◼ SAP Promotion Management on CAR

SAP CAR

◼ SAP Customer Activity Repository 2.0

◼ SAP Promotion Management on CAR

◼ SAP Assortment Planning on CAR SAP CAR

◼ S/4HANA for

Merchandise Mgmt

◼ SAP Fashion

Mgmt 2.0 (SAP FMS)

◼ SAP Allocation

Management

on CAR

SAP

ERP 6.0 EHP 8

(SPs)

SAP NetWeaver 7.5

2013 2014 2015

◼ Site master – Export/

Import

◼ Mass Maintenance of

Site/MC

◼ Geolocation Data

◼ GDS – Enhancements

◼ GDSN in SAP Retail

(Food Information)

◼ Articles with Deposit

◼ POS Inbound for not

listed Articles / Sites

◼ Segment-based batch

stock

◼ Season-based batch

stock

Page 8: The intricacies of SAP’s Digital Access License Model

8© 2020 SAP SE or an SAP affiliate company. All rights reserved.

1610 – Innovations* 1809 – Innovations*1709 – Innovations*

SAP S/4HANA On-PremiseRoadmap for Retail for Merchandise Management & for Fashion and Vertical Business

Retail

• Harmonized Retail and Fashion Foundation

• Season processes

• Distribution curve

• Value added services

• Transportation chains

• Characteristic value conversion

• Harmonized screen sequences

• Co-Existence of Retail with selected industries

(“Industry to Core”)

• Harmonization of Site master and Business Partner,

and of Retail article and material

• Efficient and extended store merchandise and

inventory processes with Fiori 2.0

• Generic articles, variant-creating characteristics using

configuration class

• Extended article/material number

• Role-based access to business transactions via Fiori

Launchpad

• Improved usability of key Retail transactions in SAP

Fiori Themes for classical transactions

• Support of Material Ledger with valuation at Retail and

value only articles

• New Retail Easy Access TX: W10U

Retail and Fashion

• Wholesale Fashion Enablement

• Supply Assignment (Order Allocation Run)

• Demand and Supply Segmentation

• Logistic enhancements (Multi-Ship to Order with

Collective Shipment)

• Merchandise management – Master data

• Enhance material/article harmonization

• Enhanced distribution scenarios for generic article and

site master

• Merchandise management – Logistics

Structured articles with full products (2-level BOM)

– Master data maintenance

– Support in logistical processes

Support MRP areas for special processes

Bonus Buy in S4 sales orders for consistent omni-

channel pricing

• Merchandise management - In-Store Merchandising

• Transfer Products app

• Fiori app enhancements for

• Order Products, Lookup Retail Products

• Merchandise management – User interface

• Improved usability of selected key transactions in Fiori

• Object Pages for product, site, allocation table

Intelligent ERP Innovation

Retail and fashion foundation

▪ Store Fiori apps

▪ In-store task management

▪ RFID enablement of transfer products

▪ RFID enablement for counting products

▪ Handling of empties in EWM integration

▪ Single-recipient purchase order for cross-docking

scenarios

▪ Machine Learning for Global Data Synchronization

▪ Stock separation using logistical products:

▪ Basic scenarios

▪ Special scenarios

▪ Automatic material ledger enabling for sites

▪ Logistical Products, Stock managed at level of logistics

units of measure (pallets, cartons, …)

Wholesale fashion enhancements

▪ Fiori app for supply assignment

▪ Simulation and analytics for supply assignment

▪ Different segmentation strategies in the supply chain

▪ Enhanced maintenance for seasons management

▪ Insight to better align the flow of fashion products with

the selling season

▪ Purchasing contract for retail and fashion processes

Enable manufacturing functionality for vertical retail

and wholesale

▪ Enhancing production capabilities for personalized

products

*) Feature highlights for SAP S/4HANA 1610, 1709, 1809 and 1909. See Feature Scope Description (http://help.sap.com/s4hana)

Page 9: The intricacies of SAP’s Digital Access License Model

© 2020 SAP SE or an SAP affiliate company. All rights reserved. 9

1909 – Recent Innovations* 2021 – Product Direction**2020 – Planned Innovations** 2022 – Product Vision**

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

Retail and fashion foundation

▪ Point-of-sale outbound

communication using an enterprise

service

▪ In-store transfers based on RFID

▪ Enterprise Search for sites,

promotions, allocation tables

▪ PP-DS parameters in article master

maintenance

Wholesale fashion enhancements

▪ Automated processes for seasons

▪ Avoid overstocking with flexible

purchasing commitment

▪ Enhanced supply-assignment

capabilities

Retail and fashion foundation

▪ RFID enablement of goods receipt

▪ POS inbound communication with

enterprise services

▪ Provide retail business process

capabilities by converting materials to

retail articles3)

▪ Support for click-and-collect scenarios

▪ Enterprise service for sending product

information

▪ RFID triggering and monitoring of in-store

movements1)

▪ Assign store associates1)

Wholesale fashion enhancements

▪ Supply Assignment Overview Page1)

▪ Monitor supply assignment demand1)

▪ Supply protection in supply assignment

▪ Meeting customer requirements for

personalized products

▪ Managing excess requirements1)

▪ Enhanced Value added services (VAS)1)

▪ Additional flexibility during direct-ship

alignment1)

Retail and fashion foundation

▪ Support for digital store processes,

using technologies such as Augmented

Reality, Natural Language Processing

▪ Providing the exact geolocations of

products in stores

▪ Insight to Action capabilities through a

store merchandising cockpit

▪ Fiori based in-store customer order

management

▪ Enhanced omni-channel processes

▪ New assortment management and

listing

▪ New solution for industry specific

terminology

▪ Retail BW/4HANA content (first phase)

Wholesale fashion enhancements

▪ Situation handling in supply assignment

▪ Integration of mill products2)

▪ Accurately calculating costs for samples

▪ Taking orders using SAP Intelligent

Robotic Process Automation (SAP

Intelligent RPA)2)

▪ Optimized distribution of supply within a

Back-Order-Processing run by Fair

Share logic4)

1) planned for S/4HANA 1909 FPS01

2) planned for S/4HANA 2020 FPS01

3) planned availability Oct 2019 via note

4) joined roadmap items with advanced ATP

Retail and fashion foundation

▪ Optimize assortment through

intelligent product lifecycle

management

▪ Increase profit through innovative retail

sales price planning

▪ Increase customer satisfaction through

intelligent store processes

Wholesale fashion enhancements

▪ Improve customer satisfaction by

fulfilling customer requirements with a

detailed action plan

▪ Improve efficiency for Make-To-Order

Production (MTO) across the supply

chain

▪ 50!

Status: April 2020

SAP S/4HANA On-PremiseRoadmap for Retail for Merchandise Management & for Fashion and Vertical Business

Page 10: The intricacies of SAP’s Digital Access License Model

© 2020 SAP SE or an SAP affiliate company. All rights reserved. 10

SAP Ariba

SAP Integrated Business PlanningS&OP, Demand, Supply, Response, and

Inventory

SAP Supply Chain Management(Forecasting and) Replenishment

The Intelligent Enterprise for Retail – Reference Architecture

Integration and Intelligence – SAP Cloud Platform and SAP C/4HANA Foundation

Core – SAP S4/HANA | SAP Customer Activity Repository application bundle | SAP SCM | SAP Integrated

Business Planning | SAP Ariba solutions

Partner add-ons

Analytics – SAP BW/4HANA – SAP Analytics Cloud

SAP S/4HANA Retail/for fashion and

vertical business

SAP Customer Activity Repository &

apps

Experience – Experience Management solutions from SAP Customer, Employee, Product,* and Brand,* Experience

Customer experience – SAP C/4HANA

SAP Commerce Cloud

Omnichannel commerce

SAP Marketing Cloud

Contextual intelligence

SAP Customer Data Cloud

Trusted relationships

SAP Sales Cloud

High-touch experience

SAP Service Cloud

Customer for life

Platform servicesExtensibility and integration

Business/Master Data services Business partner, Product, Pricing & Promotions, Customer Order Sourcing, Consumer Sales Intelligence, Order

End-to-end CX processes

Master data governance CRM

Finance, sales, commerce, service, HR, sourcing,

procurement, manufacturing, merchandise

management, store, supply chain, etc.

Product lifecycle costing

Merchandise Assortment

Promotions

Allocations

Replenishment Planning** Road map https://roadmaps.sap.com

Open ecosystem

EWM/TM

Sales audit, unified forecast, omnichannel

promotion pricing, article availability, and

sourcing

SAP Model Company services SAP BW/4HANA: Industry services like inventory diagnostics

▪ SAP Mobile Consumer

Assistant by GK

▪ SAP Dynamic Pricing by

GK

▪ SAP Point-of-Sale by GK*

▪ Loyalty by Annex CLD

▪ Clienteling by Keytree

▪ SAP Omnichannel

Point-of-Sale by GK

▪ Agreement profitability

and negotiations by

gicom

▪ MDG RFM by Utopia

People engagement – SAP Fieldglass and SAP SuccessFactors solutions | Spend management – SAP Concur and SAP Ariba solutions

Digital Access

Page 11: The intricacies of SAP’s Digital Access License Model

CONTENTS

Ancient history

Recent times

Status quo

Looking ahead

One step at a time

Page 12: The intricacies of SAP’s Digital Access License Model

12CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

•Launch of Project Trust

2017

•Outcome of Project Trust

•GLAC Formed

•Sales Audit Policy

•Digital Access

2018•Launch of Digital Access Adoption Program for 1 year

•Further supported by Conversion program & extension policies

2019

• Steady customer adoption

• DAAP to be extended

• RPA Scenarios

2020

Timeline of Actions

Page 13: The intricacies of SAP’s Digital Access License Model

13CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Page 14: The intricacies of SAP’s Digital Access License Model

14CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Sales

Customers

Sales Orders

Pricing

Availability

Claim:

“The licence granted in respect of SAP PI is a "gatekeeper" licence…”

Finding:

i) Only Named Users are authorised to use or access the mySAP ERP software directly or indirectly.

ii) Named User pricing is the only basis on which the mySAP ERP software was and is licensed to Diageo.

Any

Middleware

“Use” is defined as: “to activate the processing

capabilities of the software, load, execute, access,

employ the software, or display information resulting

from such capabilities”.

Page 15: The intricacies of SAP’s Digital Access License Model

15CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Page 16: The intricacies of SAP’s Digital Access License Model

16CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

•Launch of Project Trust

•Started to Modernize & communicate pricing

•SSOE/POE/Static Read

•Empathy

2017

•Outcome of Project Trust

•GLAC Formed

•Sales Audit Policy

•Digital Access

2018•Launch of Digital Access Adoption Program for 1 year

•Further supported by Conversion program & extension policies

2019

• Steady customer adoption

• DAAP to be extended

• RPA Scenarios

2020

Timeline of Actions

Page 17: The intricacies of SAP’s Digital Access License Model

17PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Use of SAP ERP and types of accessOne definition of use and three types of access

“Use” is defined as: “to activate the processing

capabilities of the software, load, execute,

access, employ the software, or display

information resulting from such capabilities”.

Digital Core

SAP ERP

S/4 HANA

3rd Party

CRM

3rd Party

Platform

3rd Party Application

Non-SAP Custom

Frontend

SAP C/4HANA

SAP Cloud

Platform

Page 18: The intricacies of SAP’s Digital Access License Model

18CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

•Launch of Project Trust

•Started to Modernize & communicate pricing

•SSOE/POE/Static Read

•Empathy

2017

•Outcome of Project Trust

•GLAC Formed

•Sales Audit Policy

•Digital Access

2018•Launch of Digital Access Adoption Program for 1 year

•Further supported by Conversion program & extension policies

2019

• Steady customer adoption

• DAAP to be extended

• RPA Scenarios

2020

Timeline of Actions

Page 19: The intricacies of SAP’s Digital Access License Model

19CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP modernized SAP ERP pricing for 21st century useNew model for indirect / digital access was introduced in April 2018

▪ No additional SAP

ERP license needed1

User-based

Legacy model SAP Digital Access modelavailable April 2018 onwards

Outcome-

based▪ Document license

User-based

(primarily)User-based▪ User license

▪ User license

▪ Order license

- Sales and

service orders

- Purchase orders

▪ User license

▪ No additional SAP ERP license needed1

1 SAP applications refer to line of business and industry applications (cloud and on premise), as well as SAP Solution Extensions containing the required measurement functionality. This does not apply to technology solutions, such as platform, database, middleware integration, and

SAP solutions for enterprise information management. Provided ERP is otherwise licensed, no additional ERP User license is needed for use resulting from access by properly licensed SAP applications.

Digital Core

SAP ERP

S/4 HANA

SAP ERP

S/4 HANA

Digital Core

Page 20: The intricacies of SAP’s Digital Access License Model

20CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Digital Access DocumentsOutcome based consumption

SAP ERP

Digital CoreS/4 HANA

3rd Party

CRM

3rd Party

Platform

3rd Party Application

Non-SAPCustom

Frontend

No user required for

SAP ERP or S/4 if use

is limited to scope of

SAP Application.

This still requires

Named Users or

S/4 Users

This will be either

Users or Documents

i.e. no hybrid licensing.

Page 21: The intricacies of SAP’s Digital Access License Model

21CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Page 22: The intricacies of SAP’s Digital Access License Model

CONTENTS

Ancient history

Recent times

Status quo

Looking ahead

One step at a time

Page 23: The intricacies of SAP’s Digital Access License Model

23CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

•Launch of Project Trust

•Started to Modernize & communicate pricing

•SSOE/POE/Static Read

•Empathy

2017

•Outcome of Project Trust

•GLAC Formed

•Sales Audit Policy

•Digital Access

2018•Launch of Digital Access Adoption Program for 1 year

•Further supported by Conversion program & extension policies

2019

• Steady customer adoption

• DAAP to be extended

• RPA Scenarios

2020

Timeline of Actions

Page 24: The intricacies of SAP’s Digital Access License Model

24PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

DAAP was introduced in 2019 and has been extended through December 31, 2021

Step one

Choose

measurability option

Step two

Choose

financial incentive option

(A) Customer and SAP’s Global License

Audit and Compliance (GLAC) identify

estimated number of documents created

by current use

(A) Customer licenses at least 115%

(15% growth) of current estimated

document use and the license fee

charged for this transaction is only for

such licensed growth**

OR OR

(B) Customer implements support

packages containing SAP passport

functionality to measure number of

documents created by current use

(B) Customer licenses at least 100% of

current estimated document use and

receives a 90% discount on digital

access

*The DAAP is applicable to SAP ERP and SAP S/4HANA, but it is not applicable to SAP S/4HANA Cloud

** Digital access is only eligible for standard volume discount. Special discounts may not be applied.

SAP provides

programs to help

protect past

investments in

perpetual licenses

when transitioning

to digital access

SAP product

level

conversions

SAP on-

premise

extension

policy

SAP Cloud

extension

policy

SAP S/4HANA

contract

conversion

Page 25: The intricacies of SAP’s Digital Access License Model

25PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

(A) Customer and GLAC identify estimated

number of documents created by current use

(B) Customer implements support packages

containing SAP passport functionality with

support to measure number of documents

created by current use

DAAPStep one: measurability

▪ Digital core customers can leverage an evaluation note which

allows them to identify the approximate number of documents

created by current use

▪ GLAC, as trusted advisor, will guide customer through complete

process of document estimation

▪ This SAP Digital Access evaluation service is not required, but is

optional at customer request

▪ Digital core customers can leverage a functionality called ‘SAP

passport’

▪ SAP passport is available for all SAP applications. In some cases

customers will need to implement support packages to activate

this functionality

▪ SAP will provide limited support to assist with the implementation

of the support packages

* Customer must have a support agreement to be eligible for step one: measurement

Creation of documents by SAP applications and or non-human use may result in a variance between estimates in A and B and actual use. Customer is advised that any measurements produced by A or B are estimates

only, and the number of documents customer licenses is their sole decision and customer will be required to remain compliant with their license level pursuant to its agreement(s) with SAP.

Customer chooses measurability option

Page 26: The intricacies of SAP’s Digital Access License Model

26PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Customer Quick Reference SheetSAP Digital Access document sizing based on estimation note

SAP provides a digital access estimation note including a report which you can use to estimate the number of documents that may be subject to digital access licensing. Under the SAP Digital

Access model, SAP counts and charges for the creation of initial documents triggered by a non-sap solution. All other subsequent operations (read, updates, and delete) on the document are not

counted.

Step one: identify relevant systems

Relevant systems for estimation note implementation

need to be identified. This includes SAP ECC and / or

SAP S/4HANA systems.

Step two: implement note

Download the relevant note from the service market

place. Before implementing, please make sure that the

manual steps outlined in the note are properly executed.

Step three: identify interfaces and users

Identify all external interfaces and determine the

corresponding technical users that are in place to access your

SAP ECC or SAP S/4HANA system from non-SAP

applications.

Step four: run the note

Run the note by entering the timeframe and technical

users. Check the results.

Objective

Steps

Keep in mind

➢ SAP S/4HANA: 2644172

➢ SAP ECC: 2644139

Relevant notes

Additional links

▪ For more information about digital access,

technical measurabilities, and scenarios

please visit SAP’s help portal for digital access

Execution of note

Digital access evaluation service

To verify the number of relevant documents and

clarify open questions SAP offers its customers

the free-of-charge SAP digital access evaluation

service with the following benefits: ▪ Enhanced knowledge▪ Transparency▪ Realistic document count

▪ If the same technical users are in place for SAP and non-SAP scenarios this might lead to higher values

▪ Subsequent documents created by the same technical users are not excluded by the note and will be counted as documents. These will need to be manually adjusted out of the total

▪ Archiving can affect the measured quantity

▪ The values determined are based on the current system environment and current business processes. Any changes planned for the future should be taken into account

All fields need to be addressed to obtain the best

estimate:

Page 27: The intricacies of SAP’s Digital Access License Model

27CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Note 2644139 - Digital Access: Tool for SAP ERP (ECC) Note 2644172 - Digital Access: Tool for SAP S/4HANA

Digital Access – MeasurabilityEstimation Notes

Page 28: The intricacies of SAP’s Digital Access License Model

28CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Customer Quick Reference SheetSAP Digital Access document sizing based on estimation note

SAP provides a digital access estimation note including a report which you can use to estimate the number of documents that may be subject to digital access licensing. Under the SAP Digital

Access model, SAP counts and charges for the creation of initial documents triggered by a non-sap solution. All other subsequent operations (read, updates, and delete) on the document are not

counted.

Step one: identify relevant systems

Relevant systems for estimation note implementation

need to be identified. This includes SAP ECC and / or

SAP S/4HANA systems.

Step two: implement note

Download the relevant note from the service market

place. Before implementing, please make sure that the

manual steps outlined in the note are properly executed.

Step three: identify interfaces and users

Identify all external interfaces and determine the

corresponding technical users that are in place to access your

SAP ECC or SAP S/4HANA system from non-SAP

applications.

Step four: run the note

Run the note by entering the timeframe and technical

users. Check the results.

Objective

Steps

Keep in mind

➢ SAP S/4HANA: 2644172

➢ SAP ECC: 2644139

Relevant notes

Additional links

▪ For more information about digital access,

technical measurabilities, and scenarios

please visit SAP’s help portal for digital access

Execution of note

Digital access evaluation service

To verify the number of relevant documents and

clarify open questions SAP offers its customers

the free-of-charge SAP digital access evaluation

service with the following benefits: ▪ Enhanced knowledge▪ Transparency▪ Realistic document count

▪ If the same technical users are in place for SAP and non-SAP scenarios this might lead to higher values

▪ Subsequent documents created by the same technical users are not excluded by the note and will be counted as documents. These will need to be manually adjusted out of the total

▪ Archiving can affect the measured quantity

▪ The values determined are based on the current system environment and current business processes. Any changes planned for the future should be taken into account

All fields need to be addressed to obtain the best

estimate:

Page 29: The intricacies of SAP’s Digital Access License Model

29PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

(A) Customer and GLAC identify estimated

number of documents created by current use

OR

(B) Customer implements support packages

containing SAP passport functionality with

support to measure number of documents

created by current use

DAAPStep one: measurability

▪ Digital core customers can leverage an evaluation note which

allows them to identify the approximate number of documents

created by current use

▪ GLAC, as trusted advisor, will guide customer through complete

process of document estimation

▪ This SAP Digital Access evaluation service is not required, but is

optional at customer request

▪ Digital core customers can leverage a functionality called ‘SAP

passport’

▪ SAP passport is available for all SAP applications. In some cases

customers will need to implement support packages to activate

this functionality

▪ SAP will provide limited support to assist with the implementation

of the support packages

* Customer must have a support agreement to be eligible for step one: measurement

Creation of documents by SAP applications and or non-human use may result in a variance between estimates in A and B and actual use. Customer is advised that any measurements produced by A or B are estimates

only, and the number of documents customer licenses is their sole decision and customer will be required to remain compliant with their license level pursuant to its agreement(s) with SAP.

Customer chooses measurability option

Page 30: The intricacies of SAP’s Digital Access License Model

30CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Page 31: The intricacies of SAP’s Digital Access License Model

31CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Page 32: The intricacies of SAP’s Digital Access License Model

32PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Customer Quick Reference SheetSAP Digital Access document sizing based on SAP passport

SAP passport enables an end-to-end system tracing and monitoring in distributed system landscapes and represents a data structure that is transported as additional header fields by

communication protocols (for example, RFC, http). It contains additional information about the communication between the systems (for example, component name, action).

Description

Process steps

High-level architecture

1. Identify: distinguish documents created by other SAP solutions from those coming from non-SAP

applications

2. Log: store information about externally created documents persistently in the receiver system (SAP ECC /

SAP S/4HANA)

3. Report: provide possibilities to measure and verify the number of external documents

Non-SAP

SAP

SAP ECC /

SAP S/4HANA1

2 3Report

Sender Receiver

Business data* Passport identifier

Business data*

SAP passport identifier is available for main technologies like SAP ABAP, SAP NetWeaver for Java, SAP Cloud Platform (Neo), SAPUI5 and SAP S/4HANA. Each SAP application, service, or its

communication layers adds SAP passport identifier information to each outbound call. Non-SAP system calls are delivered without SAP passport identifier.

Further information

To enable the SAP passport please follow the central technical guide note

2738406 the guideline summarizes the technical requirements needed.

For more information about SAP passport please visit SAP’s help portal for

digital access.

Page 33: The intricacies of SAP’s Digital Access License Model

33CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Measurement with the SAP Passport

➢ Use transaction RSUVM_DAC to start the report

➢ Last measurement is displayed

➢ By starting new measurement old results will be overwritten

Page 34: The intricacies of SAP’s Digital Access License Model

34PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

DAAPStep two: financial incentive

▪ Customer can choose to license >15% growth

▪ Customer benefits from the per unit price and standard volume

discount based upon the entire 115% document volume

▪ Standard volume discount is not negotiable, and this offer is

ineligible for special discounts

▪ SAP Digital Access must be licensed under a standalone order form

▪ Customer must license at least 100% of current document volume

▪ Customer can combine purchase of other solutions with SAP Digital

Access under the same order form

▪ The 90% discount will only apply to SAP Digital Access

Customer chooses incentive option

(A) Customer licenses at least 115% (15%

growth) of current estimated document use and

the license fee charged on this initial license

transaction is only for such licensed growth

OR

(B) Customer licenses at least 100% of current

estimated document use and receives a 90%

discount on digital access

Page 35: The intricacies of SAP’s Digital Access License Model

CONTENTS

Ancient history

Recent history

Status quo (part 2)

Looking ahead

One step at a time

Page 36: The intricacies of SAP’s Digital Access License Model

36CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

HANA Enterprise Edition (Full Use)

Based on GB of Memory

HANA REAB (run-time)

Based on 15% HSAV (HANA SAP Application

Value)

Direct User Access to Digital Core Digital Access (aka Indirect Use, via APIs)

LOB and Industry Solutions HANA

90+ Addon Solutions (EWM, EHS, Treasury & Risk, Cash Mgt, etc),

Enterprise Management

S4 CashMgmt

S4 PPDS

* Product subscription gives customer access to S/4HANA Cloud API Enablement Package** SAP to SAP integration included as part of core pricing

Monetizedacross all APIs

Monetize partner appsvia revenue share

The 4 Dimensions of S/4HANA On-Premise Licensing (perpetual)

S/4HANA

Etc.

S/4HANA

(on-premise)

Enterprise Management for Professional Use

Enterprise Management for Functional Use

Enterprise Management for Productivity Use

S/4HANA developer access

Page 37: The intricacies of SAP’s Digital Access License Model

37CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA OnPrem Licensing – For New CustomersDirect User Access to Digital Core and LoB & Industry Solutions

S/4HANA Enterprise Management

SAP S/4HANA Enterprise Management for Professional use [7018652]

SAP S/4HANA Enterprise Management for Productivity use [7018653]

SAP S/4HANA Enterprise Management for Functional use [7018654]

S/4HANA

Enterprise

Management

priced with a User

metric

S/4HANA LoB &

Industry Add-ons are

priced based on a

single, value aligned

metric.

Standalone solutions

sold using the classic

product numbers and

metrics

Core Solution Scope

S4 Cash

Mgmt.

S4 Central

Finance

Revenue Revenue

S4 Digital

Access

Metric

Extended Solution ScopeS4 Adv

Variant Config

Users

HANARun-time or Enterprise Edition

Database

Global Trade MIICommercially Neutral

Page 38: The intricacies of SAP’s Digital Access License Model

38CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA OnPrem Licensing – For Existing ERP CustomersDirect User Access to Digital Core and LoB & Industry Solutions

HANARun-time or Enterprise Edition

S/4HANA Enterprise Management

for ERP customers [7018538] - flat fee

S4 Cash

Mgmt.

S4 Central

Finance

Revenue Revenue

S4 Digital

Access

Metric

Global Trade MII

Extended Solution Scope

Commercially Neutral

Core Solution Scope

Database

S/4HANA LoB &

Industry Add-ons are

priced based on a

single, value aligned

metric.

SAP ERP

Named Users

NO SAP Named

Users required for

S/4HANA engines

S4 Adv

Variant Config

Users

ERP package

Flat fee (includes 5 Prof. named users)Already have this

S4H Flat-fee: SAP

Named Users are

required when

accessing S/4H

Enterprise

Management

Already have this

Page 39: The intricacies of SAP’s Digital Access License Model

39CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Digital Access DocumentsOutcome based consumption

SAP ERP

Digital CoreS/4 HANA

3rd Party

CRM

3rd Party

Platform

3rd Party Application

Non-SAPCustom

Frontend

This will be either

Users or Documents

i.e. no hybrid licensing.

Page 40: The intricacies of SAP’s Digital Access License Model

CONTENTS

Ancient history

Recent history

Status quo

Looking ahead

One step at a time

Page 41: The intricacies of SAP’s Digital Access License Model

41CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

•Launch of Project Trust

•Started to Modernize & communicate pricing

•SSOE/POE/Static Read

•Empathy

2017

•Outcome of Project Trust

•GLAC Formed

•Sales Audit Policy

•Digital Access

2018•Launch of Digital Access Adoption Program for 1 year

•Further supported by Conversion program & extension policies

2019

• Steady customer adoption

• DAAP extended

• RPA Scenarios

2020

Timeline of Actions

Page 42: The intricacies of SAP’s Digital Access License Model

42CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Robotic Process Automation (RPA) Licensing and Measurement

Based on our current contractual language we only have the following simple differentiation:

➢ SAP iRPA is considered Application access – SAP Passport necessary to identify documents

➢ Non-SAP RPAs are considered in the same way as any other non-SAP solution

Work is ongoing to achieve further transparency in alignment with SAP User Groups

Possible measurement approach for unattended scenarios: In order to identify unattended non-SAP RPA use, customers might be required to register their technical

users in a system table. Every document created by one of these technical users needs to be logged by the

SAP passport tool so that these count as digital access documents and are thereby subject to digital access

licensing.

Page 43: The intricacies of SAP’s Digital Access License Model

CONTENTS

Ancient history

Recent history

Status quo

Looking ahead

One step at a time

Page 44: The intricacies of SAP’s Digital Access License Model

44CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Help Portal: Digital Access

➢ Revised version of Digital Access content on Help

Portal is live since February 11, 2020

➢ Available to SAP Internal community and customers

➢ Includes key information around:

➢ Overview / benefits of Digital Access

➢ Measurability

➢ Identification of different access types

➢ Use case scenarios

Page 45: The intricacies of SAP’s Digital Access License Model

45CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Exceptions to Digital Access

➢ Access through an ABAP Extension

The customer-developed (or partner-developed) ABAP extension is non-SAP.

Nevertheless, the business data created by it are not counted as digital access documents.

This is the case because the ABAP extension is developed as an extension of the digital core itself, meaning there is no external, but an internal call.

Therefore, this is considered an instance of direct human access.

Page 46: The intricacies of SAP’s Digital Access License Model

46INTERNAL© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Vital parts of SAP Cloud Platform ABAP Environment

SAP CLOUD

PLATFORM

IoT

User Mgmnt.

Analytics

SAP Cloud

Platform

Services

SAP CLOUD PLATFORM ABAP

ENVIRONMENT

ABAP PLATFORM AS A SERVICE

connectivity

SAP HANA

CLOUD

ON PREMISE

SAP S/4HANA

SAP System

Non SAP SystemSAP CLOUD

CONNECTOR

CLOUD

WEB APIWEB APIWEB APIWEB API

HTTP SERVICES AND

NEW ABAP RESTful

PROGRAMMING

MODEL utilizing

Core Data Services

Cloud optimized ABAP

language

CLOUD

COCKPIT

GIT CODE

MANAGEMENT

ABAP

DEVELOPMENT

TOOLS IN ECLIPSE

Page 47: The intricacies of SAP’s Digital Access License Model

47CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Exceptions to Digital Access

➢ Accessing SAP Digital Core via a Client App (any User Interface) or SAP Fiori App

By logging into the client app, Katrin is actually logging into the digital core, using the user that she has licensed there.

This means that an individual user in the digital core is required in this scenario and this user is licensed with a direct human access license.

Consequently, all documents created through Katrin's user are covered by her user license and are not counted as digital access documents.

Page 48: The intricacies of SAP’s Digital Access License Model

48CONFIDENTIAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Exceptions to Digital Access

➢ Data is Pulled from a non-SAP Application through SAP System Functionality

Although the data comes from outside the digital core, the documents created in this way aren't counted as digital access documents.

This is because the data is imported from the non-SAP app by Katrin (or her batch job) using the digital core's import and upload functions/transactions.

These are standard SAP transactions that are provided by the digital core by default.

Moreover, an individual user is required to use these functions, which, in this case, is Katrin's individual user.

Page 49: The intricacies of SAP’s Digital Access License Model

CONTENTS

Ancient history

Recent history

Status quo

Looking ahead

One step at a time

OK… two steps

Page 50: The intricacies of SAP’s Digital Access License Model

50PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Digital Access Adoption Program

Digital Access

Evaluation

Service

DAAP

Page 51: The intricacies of SAP’s Digital Access License Model

African SAP User GroupOffice: +27 11 235 6000 | [email protected]

SAP Business Park, 1 Woodmead Drive, Woodmead, 2148

www.afsug.com

THANK YOUMark HughesLicense and Compliance Management: AfricaSAP Global License, Audit & Compliance (GLAC)[email protected]