With SAP HCM Cloud Service

The Digital Core

and Support

Speakers Name/Department

Date, 2015

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WHAT IF IT DID MORE WHAT IF THE IT
THAN JUST KEEP DEPARTMENT LED
THE LIGHTS ON? THE TRANSITION TO
THE DIGITAL CORE?

WHAT IF IT WAS
THE CATALYST FOR
INNOVATION?
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 Understand How to Make it Happen

HOW DOES SAP S/4HANA

MAKE THE DIGITAL CORE A REALITY?

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 How SAP S/4HANA Makes the Digital Core Real

Improved user New business capability

Simpler data model + experience = Improved productivity

Unified data model

Drill down to detail
eliminates FI-CO batch + and KPI cockpit = Continuous soft close
Examples

reconciliation

Transactions run without Instantly-refreshed Reduced processing time

table locks + KPIs = and carrier fees

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 Simpler
What Does it Mean to Simplify? Data Model

AN ANALOGY: SENDING A PHOTOGRAPH TO SOMEONE FAR AWAY

Camera Film Darkroom Paper Postal Service Recipient Complicated and with enormous
resource expenditure. Individual
components were eventually
sped-up to get the end-to-end
process to one day minimum.

Camera Internet Recipient Not merely fasterthe

architecture is reduced. As a
result, the process happens
instantly and can be done any
time and in different ways for a
fraction of the cost.

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 Simpler
Simpler Data Model: Inventory Management Example Data Model

Traditional disk-based ERP In-memory ERP

Aggregates History Document

MSTQ MSLB MSTQH MSLBH MKPF

On the fly aggregation

MSTE MSKU MSTEH MSKUH MSEG

Inventory movements
MSTB MSKA MSTBH MSKAH

Material Master
MSSQ MKOL MSSQH MKOLH Master data with
Stock aggregates
MATDOC
MSSA MCHB MSSAH MCHBH MARC MARD Material Document

MSPR MSPRH MARDH

Master data without Stock aggregates
MARCH MARDH MARC MARD
MARCH
Master Transactional 26 aggregate
data data tables

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 Simpler
Simpler Data Model Impact Data Model

TECHNOLOGY
No aggregates or redundant data
No locking
Full granularity for all processes

CAPABILITY
Operations in real time
Elimination of data reconciliation
More precision
Basis for simulations and predictions

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 Improved
A Digital Interface for a Digital World User Experience

FROM THE PAST TO THE PRESENT

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 New
Example: Soft Financial Close Anytime Capabilities

Traditional System Close

batches
Consolidation
batches
With SAP S/4HANA

Reporting on demand

Initial period Close and consolidation Initial period Close and consolidation

With traditional system: User With SAP S/4HANA

Ad Hoc
Interaction
Close activities that dont begin until period end Real-time system with key performance indicators (KPIs) instantly refreshed
Multiple batch-run dependencies Elimination of end-of-period batch bottlenecks
Batch bottlenecks that delay downstream activities Traditional With SAP S/4HANA Continuous intercompany reconciliation
High error-correction efforts Continuous financial reporting visibility
Complex issues that are postponed until after close Profitability analysis and line-item detail reconciliation
Time-pressured resolutions Automation for routine tasks
Delayed visibility into reporting Process Excellence Full management visibility of close tasks

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 New
Example: Post Goods Issue (PGI) Capabilities

BUSINESS CHALLENGES RESOLUTION IN ECC 6.0

The clients facilities run 24/7 including high-volume, small lot size shipping transactions Repeat attempts to post PGI until there is no lock
Materials are shared across plants and multiple shipments are frequently Reschedule background jobs for PGI
executed in parallel Rethink batch strategy for materials
Experiencing instances where PGI failed because the material data (batch stock) Identify SAP Basic changes to reduce number of locks
was locked:
Goods movement is posted
Quantity on hand is updated in aggregation tables

Delays trying to post goods issue while the truck driver is waiting RESOLUTION IN SAP S/4HANA
The Batch Stock tables no longer exist. Only the material movement
needs to be created without regard for the actual stock level.
Transactions can be run in parallel without table locks.

Reduced transaction No carrier Reduced risk of users

processing time detention fees working around the system

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 New
Reduced IT Complexity Capabilities

Traditional DB on HANA S/4HANA Current

593 GB
118.6 GB
42.4 GB
8.4 GB

Example with Finance data

IMPACT ON IT LANDSCAPES:
Reduced storage
Less replication
Less network load
Faster restart after failover

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 New
Landscape Consolidation Example Capabilities

Use in slide show mode for animation

Sales and Service Supply Chain Sourcing

Commerce Planning Procurement BW

Operational
Customer Execution SRM Reporting

ERP

Legacy
SAP HANARDBMS
Platform

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 New
Industry Solutions Consolidation Capabilities

ERP ERP

High Tech Retail High Tech

Retail

Legacy RDBMS Legacy RDBMS SAP HANA

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 1610 Release Highlights

SAP Fiori 2.0 UX

Core innovations across the product,
especially Finance and Supply Chain
Central Finance
Integrated Extended Warehouse Management
Production Planning & Detailed Scheduling
(PPDS)
Advanced Available to Promise
Integrated Quality Management
Many others
More industry support: Oil & Gas,
Retail
Embedded MDG and Analytics
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 Understand How to Make it Happen

HOW DO I PLAN FOR

SAP S/4HANA ADOPTION?

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 Strategy and Tactics of SAP S/4HANA Adoption

TACTICS IS KNOWING WHAT TO DO

WHEN THERE IS SOMETHING TO DO.
STRATEGY IS KNOWING WHAT TO DO
WHEN THERE IS NOTHING TO DO.

Savielly Tartakower
Chess Grand Master
1887-1956

If you are not sure what to do next with SAP S/4HANA, there are several strategies you can employ today

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 SAP S/4HANA Strategy and Tactics

STRATEGY TACTICS

Engage the Line of Business Planning workshops

Rapid prototypes
Connect with use cases

Can start today Engage user community Rapid prototypes

User Assistance Technology
Mobile

Rationalize customizations Inventory tools

Simplification DB
CDS views
Key user extensibility
HCP

New implementation Cloud offerings to accelerate

Strategies for the Data Integration (HCI)
actual deployment
System conversion 1511 version for entire suite
Finance only
New deployment
Bridge with Suite on Hana
landing page
Landscape transformation Incremental adoption with Central Finance

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 SAP S/4HANA Adoption Paths

ERP System On-Premise

EXAMPLE:
New New or existing SAP Customer
Implementation Non-SAP implementing a new SAP S/4HANA
System S/4Cloud system with initial data load

EXAMPLE:
System ERP System On-Premise
Conversion Complete conversion of an existing
SAP S/4HANA SAP Business Suite system or selective

ERP System
Region A On-Premise
EXAMPLE:
Landscape ERP System
Transformation Region B Central Finance
ERP System S/4Cloud
Region C

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 Complete Choice of Deployment

SCOPE CUSTOMIZATION MAINTENANCE LICENSING

Enterprise
Essentials Extensions only SAP Subscription
Management Cloud
Enterprise
Extensions,
Management Cloud, Full ERP Shared Subscription
configuration
Private Option
HANA Enterprise
Full ERP Unlimited Shared Traditional
Cloud
On Premise Full ERP Unlimited Customer Traditional

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 Easing the Transition

WHAT HAPPENS TO MY Fiori Shell Fiori Design

CUSTOMIZATIONS WITH THE Apps, Studio
Search
ALV Analysis
SIMPLIFIED DATA MODEL? (U15) App

Backward compatibility OData R InA R InA R

Core Data Services S/4 HANA Gateway

ABAP
SAP GUI R R

Transactional Logic Analytic Engine (Enterprise-)Search

Leveraging new capability
R R R
Simplification DB
Key User Extensibility Core Data Services View

HANA

Suite Tables

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 Major Milestones in SAP S/4HANA Adoption

PREPARE EXPLORE REALIZE / DEPLOY

All Implementation Dependent on Migrate Existing

Scenarios Implementation
Scenarios
System Conversion
Technology driven migration offering

Strategy &
Roadmap
Landscape Transformation Implement new
Implement
Value Discovery Business driven migration offerings
Innovations
additional industry
Workshop Installation and data
Technical / LOB packages
transition for SAP
Architecture
& Migration
Planning New Install

New Implementation
On S/4HANA on premise and cloud

Leverage SAP Digital Business Services or Partner Ecosystem

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 Next Steps

HOW CAN I LEARN MORE?

WWW.SAP.COM/S4HANA

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 With SAP HCM Cloud Service
and Support

Speakers Name/Department

Date, 2015

2016 SAP SE or an SAP affiliate company. All rights reserved. Public 23