Approach for Enhancements in SAP S/4HANA

For Organization Specific

and Industry vertical Specific processes

1
Agenda
 Overview of Electrotherm
 Our Understanding
 Business Units
 Landscape
 SAP and Non SAP Components
 Infrastructure
 Modules implemented
 Modules Not Implemented
 Functionalities Not Explored
 SAP Assessment Observations
 Types of SAP Deployment
 Generic Comparison
 ET Specific Comparison
About Customer
Our Understanding

4
Business Units
• Multiple Divisions /Business Units
• Around 25 plants
• Warehouses/Depots
• Multiple company codes

• Multiple lines of Business

• Engineering , procurement and Construction of Electrical Assemblies
• Manufacturing
• Continuous Casting
• Furnace processes
• Value Add processing like heating, hardening, coating etc.
• Equipment (Industrial Machinery and Component) Manufacturing
• Hazardous Chemical Manufacturing
• Service Sales and Project/professional Service sales
• Exports and high sea sales
• Automotive OEM
• Metal Processing
Landscape
• SAP
• Multiple Versions of SAP Across landscape
• SAP ECC 6 EHP 8
• IS Steel and IS Automotive Industry Solutions from SAP
• SAP HCM Core modules deployed for Automotive Division
• Frontend
• SAP GUI
• On premise Own Data centre
• NON SAP
• Salesforce for SFA /Project presales
• Highly customized and interfaces have been developed
• HR Application
• For all other divisions
• Payroll processing in 3rd party tool

• An Internal Tool for field service

• Dot Net Based, Developed in-house

• First Level Maintenance and Support done by In-house Team for all landscape
Modules
• Implemented in SAP • Implemented Non SAP
• ECC • Salesforce for Presales and
• FI Business development of
• CO Projects
• Asset management • Internal 3rd Party Apps for
• Sales and Distribution Quality Assurance and
• Material Management approval
• Project Systems • Internal 3rd Party App for
• Plant Maintenance Customer Service
• Customer Service(Without Warranty
Management)
• Quality Management
• Production Planning

• Core Human Capital Management

• Organizational Management
• Personnel Administration
• Time Management
• Payroll Processing (India)
Modules
• Products /Modules can be implemented
• SAP Analytics (BI/BW/BOBJ)
• Interface monitoring tools such as SAP PO/HCI
• SAP Supply Chain management components
• (APO) Advanced Planning and Optimizer
• (PPDS) Production planning with Detailed Scheduling
• (DP) Demand Planning
• SAP Mobility Applications with FIORI as Front end Platform
• SAP EHS :(Environment, Health and Safety) : Product safety and stewardship
• SAP Transportation Management
• SAP Financial Supply chain functions such as Hedging, Forex management, Bank Communication
using Interface, Trade Finance (Letter of Credit and other forms of Payment/Bank Guarantee)
• Legal management
• SAP BPC ( Business Planning and consolidation )
• SAP Archive management using new generation tools/concept of Near Line Storage
• SAP Tools for Shop floor equipment integration such as MII/Leonardo
• SAP Customer relationship management/Customer management/C4C Sales, Service, Marketing
• SAP ARIBA for Sourcing ,Contract management
Functionalities Not
Explored
Assessment Observations

10
Current Strengths

Overall operations
Overall operations Project presales is
are stabilized in
are stable in mapped * ( in 3rd
Steel Pipe
Finance module Party application)
business unit

Gate entry
Users are In house hosting
customization is
extensively using ensures near to
stable and being
the SAP system zero latency
used properly
Current Pain Areas

Controlling module is not providing reliable information

Analytics is not available from system from MIS perspective

Transactional analytics is not effective and accurate from current version of SAP

Integrated process flow not available for projects

Project costing is not providing required information from SAP

Organization structure set up is causing additional efforts for MIS

Users have to perform repetitive data entry

System performance is slow as per end users

GST Mapping needs validation and transactional processing needs manual review each time
 SAP Assessment Observations
Sales Organization structure revamp is needed

Transactional Analytics cannot be corrected without the same

Transportation management implementation is needed considering overall transportation volume

APO is needed considering multiple plant planning

Order to Cash cycle considering project contracts needs to be reorganized as Contract creation, release order creation
process has some inefficiencies and therefore reporting is not accurate

Some processes in overall logistics modules are not available ,will need mapping for example Customer master, material
master harmonization and governance , order to cash variations of projects, exports and after sales warranty
management , Scheduling agreement in procurement
MRP planning is not active because of overall configuration and process mapping, master data issues, needs to activate
live MRP in new SAP S/4HANA environment

Overall Analytics is not available , to be enabled on both levels Operational as well as Regular Analytics
 SAP Assessment Observations
Business Planning for sales, Operations, financial planning is not in current environment, looking at current scope, diversity and growth ,is
highly recommended to be used
Enterprise Asset management recommended for next generation functionality availability in current Plant maintenance environment

Need reorganization of Communication between SFDC and SAP

Need Reorganization of Workflow between Projects, SD,PP and MM to eliminate Open Reservations etc.

Entire Concept to Cash cycle of projects to be incorporated in SAP using S/4HANA customer management, Field service, Project presales,
Workspace management, and S/4HANA Planning, Finance and logistics capabilities to provide deeper insights into capex heavy project
operations
Modules/Tools can be used are SAP S/4HANA, S/4HANA Customer management, S/4HANA Embedded Analytics(BI) , S/4HANA Simple
Logistics with SCM functions, SAP S/4HANA Integrated Business planning modules, SAP S/4HANA Embedded TM and S/4HANA Embedded
BPC
Restructuring of Profit Centres

Costing Module restructuring

PS Costing restructuring
TYPES OF DEPLOYMENT OF SAP S/4HANA

Comparison of Options for Electrotherm

Possible Deployment options
1. System Conversion from Business Suite to S4 HANA on premise using Software update
manager with Database Migration Option for customers not on HANA DB
Deployment options
2. Merging multiple Systems into SAP S4 HANA On premise system using System Landscape
Transformation
Deployment options
2. Migration of parts, into SAP S4 HANA On premise system using System Landscape
Transformation
Deployment options
3 . Brownfield Migration to SAP S4 HANA On premise

SAP ECC
Generic Comparison
Conversion using SUM, DMO Tools
• Upgrade database using DMO
• Upgrade application using SUM
• No change in business process or
business models
• Adoption of Existing systems
• Suitable for Organizations not looking
to disrupt business users and functions
• Lot of uncertainty as existing Data
models are changed ,many
functionalities are retired
• Changes to existing configurations are
not possible as this is a technical
conversion activity
• As is process is created without custom
code upgrade in S/4HANA from ECC
Migration using SLT Service from SAP
• System Transformation using SAP’s
Landscape transformation services
• Can convert multiple system
Landscape to S4H based Landscape
• Can be used for phase wise part by part
conversion
• Expensive approach
• Need SAP or SAP approved expertise in
SLT
• Utilization of Full potential of S4H will
take long time
• Will require big governance or
Architecture team to take care of end
to end transformation
Brownfield Migration
• Approach of brownfield or Greenfield
implementation
• Modeling of system and processes as
per S4H
• Use of new business models
• Use of new business processes with
advanced applications replacing old
one
• Customization only for gaps against
S4H processes
• Conversion of Data to S$H enabled
• Historical data to remain in old model
and systems
• Additional efforts in reporting
• Additional landscape maintenance
efforts for historical and archived data
• Not suitable for customers using
industry solutions where functionality
is yet to be released
Index Observation Possible in Possible only with Remarks
System Brownfield
conversion Migration Approach

1 SAP Core functionality availability Y Y

2 SAP Custom code/Delta Development Y Y Partially Available with Conversion
Migration based on SAP’s Custom code
migration constraints

3 SAP BPC Implementation N Y Conversion will not activate BPC

,configuration is an extra work
package

4 SFDC to back end SAP platform integration N Y Will need to be developed

5 SAP Transportation management N Y Based on Services scope of
Migration
6 Customer service /Field service N Y
optimization
7 Transactional Analytics Y Y Enablement of Core Transactional
Analytics , Optimization can happen
with migration

Comparison of Different Approaches specific to ET requirement

Index Observation Possible in Possible only with Remarks
System Brownfield Migration
conversion Approach
8 Organization Structure optimization N Y
9 Analytics (BI/BW) enablement N Y
10 FI/CO Optimization of various processes to N Y
remove current pain areas
11 SD,PS,MM Process optimization N Y
12 MRP activation N Y
13 Business Unit wise Reporting N Y Configuration to be revisited ,not
possible with Conversion

Comparison of Different Approaches specific to ET requirement

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