02a-SAP S4HANA Overview Aug 27 2015 - Will Yeldell

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S/4 HANA

Transcript of 02a-SAP S4HANA Overview Aug 27 2015 - Will Yeldell

  • Run Simple with the next-generation business suite

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 2Internal

    Weve come a long way together

    1972SAP R/1

    1979SAP R/2

    1992SAP R/3

    2000mySAP

    2004SAP ERP

    2011SAP HANA

    Client/serverMainframeWorld

    Wide WebIn-memorycomputing

    Service-orientedarchitecture

    9 40+ years of innovation across industries9 291,000 customers9 74% of the worlds transaction revenue

    touches an SAP software system

    9 Integration9 Standardization9 Globalization

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 3Internal

    The world is digital and networked

    Last 2 years

    90%Of the worlds data hasbeen generated1

    Last 2 years

    40%Growth in adoption ofbusiness networks2

    1 ScienceDaily, May 22, 2013.

    2 Technology Adoption Report on Business Networks, Ardent Partners, 2014.

    3 Internet of Things (IoT) 2013 to 2020 Market Forecast: Billions of Things, Trillions of Dollars, IDC, 2013.

    4 Statista, 2014.

    212 billionEnd of 2020

    Things will be connected3

    By 2020

    9 billionMobile users in the world4

    In 2014

    51%Of workloads processedin the cloud5

    5 Cisco Global Cloud Index: Forecast and Methodology for20132018, Cisco Systems Inc., November 11, 2014.

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 4Internal

    The digital economy is a reality

    *MIT Digital Change Survey, 2013

    Of business leaders said thatachieving digital transformationwill become critical to theirorganizations within the nexttwo years.*

    78%

    Of employees in companieswhere CEOs have shared theirvision for digital transformationfeel that it is the right thing forthe organization.*

    93%All lines of business running in real time on a digital business platform

    The digital value chain

    SuppliersPeople

    Resources

    Om

    nico

    mm

    erce

    Deliver exceptional experiences toyour customers across everychannel of interaction

    To enable the workforce ofthe future employees and

    contingent labor

    Enable frictionless commerce bymanaging suppliers better

    Manage materials, assets, money, and otherresources better

    Customers Bus

    ines

    sne

    twor

    k

    SocialInternet

    ofThings

    Otherunstructured/

    structureddata

    The digital value chain

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 7Internal

    But the greatest barrier to digital transformation is complexity

    Complex technology Complex business processesComplex decision making

    237 billion in annual profits are lost by the worlds top 200 companies (10% of profits)

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 8Internal

    SAP HANA, the great simplifier of enterprise software

    SAP HANA

    SAP BusinessWarehousepoweredby SAP HANA

    SAP BusinessSuite poweredby SAP HANA

    SAP SimpleFinancepoweredby SAP HANA

    y Real-time analysisy Real-time reporting

    y Real-time businessy OLAP and OLTP togethery SAP HANA Enterprise

    Cloud for SAP BusinessSuite on SAP HANA

    y In-memory platform y Instant financial insighty No aggregatesy Single source of truth y Simplified data model

    y New user experiencey Advanced processingy Choice of deployment

    2011 20132012 2014 2015

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 9Internal

    SAP Business Suite 4 HANA the next Generation

    SAP Suite on HANA

    today 20252016

    Deg

    ree

    ofsi

    mpl

    ifica

    tion

    Most modern & performant platform No more batch processes Real-time insight to action Streamlined business process Dramatically improved UX Fastest growing product ever

    Deliver on the promise of the PerfectEnterprise.

    Real real-time. Integrated. Open.Networked. Simple UX.

    New license product, but no newtechnical product (non-disruptive)

    On premise, in the cloud Runs on SAP HANA Default offering for new customers

    20142013

    +

    10

    800

    >2000 customers

    S/4HANAFinance

    S/4HANALogistics

    SimpleERP

    SAP Business Suite 4on HANA

    SAP Suite on AnyDB Mainstream maintenance until 2025 Customer Connect

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 10Internal

    SAP S/4HANA, our next-generation business suite

    Cloudedition

    On-premiseedition

    SAP S/4HANA applications and extensionsInstant insight-driven applications for all lines of business and industries

    SAP HANA platformIn-memory platform for all data

    SAP Fiori user experience (UX)Role-based user experience for all devices

    Ariba | Concur | Fieldglass | hybris | SuccessFactors

    Native integration for hybrid scenarios

    People

    Devices

    Big Data

    Internetof Things

    Businessnetworks

    Socialnetworks

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 11Internal

    S/4HANAERP on HANA_SoH

    S/4HANA Transition Options for Installed Base Customers - Q2/Q3 2015

    ERP6 EhP

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 12Internal

    SAP S/4HANA designed to reimagine business

    Reimaginedbusiness models

    Simplicity to connect to people,devices, and business networks

    Reimaginedbusiness decisionsSimplicity to get any insight on

    any data from anywhere

    Reimaginedbusiness processes

    Simplicity to focus on the essential tasksand change business processes

    SAPS/4HANA

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 13Internal

    SAP Fiori

    A collection of apps with asimple, easy to useconsumer-grade userexperience for the mostbroadly and frequentlyused SAP softwarefunctions that workseamlessly across devices desktop, tablet, orsmartphone

  • 14 2015 SAP SE or an SAP affiliate company. All rights reserved.

    Fiori Concept

    Consumer-Grade Business Applications

    TodayFunctional-based applications

    FioriRole-based applications

    One transaction for multiple rolesexposing all data & functions to allusers

    Decomposed apps for each roleexposing only relevant data &functions

  • 15 2015 SAP SE or an SAP affiliate company. All rights reserved.

    Fiori Concept

    Consumer-Grade Business Applications

    TodayFunctional-based applications

    FioriRole-based applications

    One transaction for multiple rolesexposing all data & functions to allusers

    Multiple entry points for the user andinconsistent user experience (e.g.ERP vs. CRM)

    Decomposed apps for each roleexposing only relevant data &functions

    One entry point for the user withconsistent experience andcommon design directions

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 16Internal

    SAP S/4HANA - FioriSimplified for Human Desirability

    SAP Fiori offers a beautiful, role based, integrated userexperience with modern usability based on mobile firstprinciple.

    Up to 90% workload reduction at customer helpdesk dueto prevention of wrong usage

    User Activity SAP GUI SAP S/4HANA with SAPFiori

    % Reduction

    Duration 2:12 mins 47 secs 64%

    Clicks 39 11 71%

    Screen changes 8 2 75%

    Fields filled 5 2 60%

    Example: Receivables Management video

    Example: Less processing steps

  • Digital Core Transformation

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 19Internal

    SAP S/4HANA Finance Add-Onthe first available shipment within SAP S/4HANA

    SAP Business Suite on HANA

    SAP HANA Platform incl. HANA live

    AlignedSingle source of truth

    AgileReal time processes

    PredictiveDynamic planning and

    analysis

    SAP Cash Managementpowered by SAP HANA

    New product forgroup cash management

    SAP Accountingpowered by SAP HANA

    Alternative in-memoryfunctionality for ERP customers

    SAP IntegratedBusiness Planning

    New capabilities and enhancedintegration for ERP and BPC

    The S/4HANA Finance Add-on is the technical software product on-premise and is the re-architectured financialscore applications as part of ERP Finance

    With the S/4 Finance add-on Customers will be able to leverage simplified process on a simplified architecture S/4 Finance Add-On is general available since August 2014, and is part of the S/4 product*

    Key Messages

    *Cash Management and Integrated Business Planning arelicensed additionally

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 20Internal

    SAP S/4HANA, example with finance

    COSPCOEPCOBKBKPF BSEG BSEG BSEG BSIS BSIS BSIK BSET LFC1 GLT0 GLT0 GLT0

    SAP S/4HANA Finance 4 0

    updatesinserts

    SAP Finance with aggregates and indices 10 5

    no indices no aggregates no redundancies

    CORE DATA STRUCTUREREMAINS UNCHANGED

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 21Internal

    Topcapabilities

    Unique value ofSAP S/4HANA

    Businessinnovations

    Solutions Quantifiablevalue

    Use case

    Soft financial close anytime

    Description: A traditional measurement of the finance organization is the speed at which a company closes its books. In benchmarkingstudies, SAP Value Engineering found that the top quartileperforming companies achieve the annual financial close in 26% fewer days thantheir peers, resulting in 61% lower General Ledger and closing costs.

    Industry relevance: Cross-industry

    y Drive one common view of financial data to help ensure enterprise-wide consistency to minimize reconciliationy Enable real-time processes for instant insight to make timely, relevant decisionsy Use prediction, simulation, and analysis to evaluate financial implications of strategic business choices

    y Universal journal for both financial and controlling datay On-the-fly aggregation of transactional tablesy Central finance to consolidate many back ends

    y SAP S/4HANA, on-premise editiony SAP S/4HANA, cloud editiony SAP S/4HANA Financey SAP Accounting powered by SAP HANA

    y Real-time oversight of close progressy Real-time insight into financial resultsy Continuous intra-month processes

    y 400 hours cut from period-end closey 86% faster real-time analyticsy 2.5x faster cost postings*

    *SAP software implementation

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 22Internal

    Closebatches

    Consolidationbatches

    Initial period Close & consolidation

    Reporting on-demand

    Close & consolidationInitial period

    Business process view: Soft financial close anytime

    With SAP S/4HANA:y Real-time system with key performance indicators

    (KPIs) instantly refreshedy Elimination of end-of-period batch bottlenecksy Continuous intercompany reconciliationy Continuous financial reporting visibilityy Profitability analysis and line-item detail reconciliationy Automation for routine tasksy Full management visibility of close tasks

    With traditional system:y Close activities that dont begin until period endy Multiple batch-run dependenciesy Batch bottlenecks that delay downstream activitiesy High error-correction effortsy Complex issues that are postponed until after closey Time-pressured resolutionsy Delayed visibility into reporting

    Traditional system With SAP S/4HANA

    Userinteraction

    Ad hoc

    Traditional With SAP S/4HANA

    Process excellence

    Userinteraction

    Ad hoc

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 23Internal

    Topcapabilities

    Unique value ofSAP S/4HANA

    Businessinnovations

    Solutions Quantifiablevalue

    Use case

    Planning and predictive finance

    Description: Obtain instant financial analytics across multiple dimensions of finance and operations. Employ modeling and prediction toevaluate the financial implications of strategic business options. Use planning and what-if simulations for both a backward- and a forward-looking perspective on your business.

    Industry relevance: Cross-industry

    y Build representations of the most likely business scenarios for revenue, margin, and operational costsy Exploit patterns, trends, variances, and correlations that directly drive financial business performancey Anticipate cash-flow issues and take preventive action

    y Rapid building of modelsy Real-time predictions and simulationsy Comparison of dimensions

    y SAP S/4HANA, on-premise editiony SAP S/4HANA, cloud editiony SAP S/4HANA Financey SAP Business Planning and Consolidation

    y Real-time revenue and cost analysisy Real-time liquidity forecastsy Continuous planning and forecasting

    y Increased forecast accuracyy Improved marginy Optimized cash flow

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 24Internal

    Userinteraction

    Ad hoc

    Business process view: Planning and predictive finance

    With SAP S/4HANA:y Single consolidated view of all planning and forecasting

    informationy Rollup of planning from subsidiaries into corporate planningy Rollup of planning from operations into financial planning to

    measure the financial impact of operational plansy Leveraging of real-time information to immediately update plans

    and forecastsy No lag time for updates across objectsy Predictive capabilities to model planning options

    With traditional system:y Different planning processes and interfacesy No consolidation of related plans between objectsy Lack of insight of operational planning into the financial

    bottom liney Manual consolidation of planning across objectsy Inability to update plans and forecastsy No what-if capabilities, resulting in guesswork

    MicrosoftExcel access

    Profit center plan

    Cost center plan

    Profit centerhierarchy

    Cost centerhierarchy

    SAP ERP reporting

    SAP BusinessWarehouse reporting

    SAP ERP reporting

    SAP BusinessWarehouse reporting

    SAP ERP reporting

    SAP BusinessWarehouse reporting

    Product/manufacturing plan

    Productionplanning

    Strategicplanning

    Salesplanning

    Priceplanning

    Investmentplanning

    Procurementplanning

    Headcountplanning

    Marketingplanning

    Costplanning

    Revenueplanning

    Balance sheetand

    profit-and-lossplanning

    Profitabilityplanning

    Product/manufacturing hierarchy

    SAP ERP reporting

    Traditional system With SAP S/4HANA

    HR plan

    HRhierarchy

    SAP BusinessWarehouse reporting

    Marketing plan

    Marketinghierarchy

    Channel plan

    Channeldistribution

    Traditional With SAP S/4HANA

    Process excellence

    Userinteraction

    Ad hoc

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 25Internal

    Topcapabilities

    Unique value ofSAP S/4HANA

    Businessinnovations

    Solutions Quantifiablevalue

    Use case

    Real-time cash management and forecasting

    Description: A recent study of treasury functions conducted by CFO Research has shown that cash management and forecasting havebecome more important than ever for a companys success, but they have also become more difficult to do well. With real-time insight, flexibleinterfaces and intutive user interfaces, SAP Simple Finance delivers the cash management capabilities that companies need to succeed.

    Industry relevance: Cross-industry

    y Drive one common view of cash data to help ensure enterprise-wide consistency to minimize reconciliationy Enable real-time processes for instant insight to make timely, relevant decisionsy Use prediction, simulation, and analysis to evaluate financial implications of strategic business choices

    y Real time information on all cash balancesy Integrated liquidity management including cash flow

    analysis and embedded liquidity planning based on IBPy Central bank account management

    y SAP S/4HANA, on-premise editiony SAP S/4HANA, cloud editiony SAP S/4HANA Financey SAP Cash Management powered by SAP HANA

    y Unrivaled level of consistency to forecasting cashbalances, cash requirements, and liquidity strategies

    y Secure identification of drivers behind working capitalleverage points to quickly impact key business metrics

    y 58% lower treasury and cash management costy 28% lower cost of capitaly 50% less time needed to gather data for reports*

    *SAP software implementation

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 26Internal

    Business process view: Real-time cash management andforecasting

    yWith SAP S/4HANA:

    New Cash Management solution combining analyticalfunctions and related transactions

    Fiori embedded and KPI based analytics available

    Including integrated Bank Account Management for thecentral administration of bank accounts and signatories

    Integrated Planning Model embedded benefiting from asynchronized and harmonized data model

    Flexible and Non-disruptive cloud or on premisedeployment options

    With traditional system: Only limited basic Cash Management functions

    Almost no analytical capabilities

    Liquidity Planning function outside ERO

    No Bank Account Management available

    Limited capabilities to integrate data from othersystems

    No option to run in the cloud

    Traditional system With SAP S/4HANA

    Userinteraction

    Ad hoc

    Traditional With SAP S/4HANA

    Process excellence

    Userinteraction

    Ad hoc

    ERP

    CashMgmnt

    X

    Y

    Z

    Cloud

    XZ

    Y

    Cloud

    ERP

    CashMgmnt

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 29Internal

    Implementation option (not a separate product) of SAP Business Suite powered by SAP HANA with Financials Add-ons for customers with multi-ERP system landscapes or out-of-maintenance or highly customized SAP systems

    Can provide consolidated financial and management reporting, central process execution and transaction, planning,and reporting based on the same (single source of truth) data set*

    Adoption is non-disruptive and migration over time is possible

    Central Finance (What)

    What

    y Dedicated central journal instance (side-car possible)

    y Real-time replication of finance data from SAP or non-SAPsystems onto central journal for further processing **

    y Standard SAP Finance deployment, customer scope **

    The central journal leverages

    y Financials add-ons New Finance architectureUnified FI/CO documents

    y Suite on HANA Process optimization / innovationNew user interfaces / user interaction

    y HANA platform Real-time operational reporting

    * requires respective SAP products and licenses (e.g. SAP Accounting powered by SAP HANA, SAP Business Planning) ** Various scope options exist,standard services in place (RDS in process), might require consulting-based implementation (SAP AGS, Consulting, SAP partners)

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 30Internal

    Central Finance (How)

    Finance data is copied from source systems onto a central journal instance. Sourcesystems can remain in place and continue with local transaction processing.

    The central journal is used for

    y Central reportingy Central processes and use casesy New and improved functions in latest SAP Finance releaseSource systems can be migrated onto the central journal instance over time

    Replication

    y via SAP SLTy Transaction-basedy Table replication not recommended

    Requirements

    y System configuration and customizingy Master data synchronization (chart of accounts etc.)

    Restrictions

    y Centrally executed processes must not result in back-postings to the source systems in order to maintain theintegrity (completeness etc.) and legacy system status ofthose systems

    y The amount of configuration, customizing, and master datasynchronization required in the central instance depends onthe type of process desired. Many scenarios, especiallycore GL scenarios, are achievable with limited effort. Morecomplex scenarios, or scenarios beyond (core GL) Financemight be challenging or in selected cases not feasible

    * requires respective SAP products and licenses (e.g. SAP Accounting powered by SAP HANA, SAP Business Planning)

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 31Internal

    SAP S/4HANA LogisticsValue Scenario outlook to Q415

    Comprehensive AnalyticsAccelerate business decisions with focus on event basedreaction (like Material Shortage) and with integrateddecision and simulation support.Language support for: EN, DE, FR, ES, JA, RU, CN, PT

    $

    Removing locking issues cut post-processing

    MRP runs several timesper dayy Analysis and identifies

    disruptions in the material flow.

    Plan Dynamicallyy Better visibility into

    inventory and product data.

    Optimize BackorderProcessingy Backorder processing with intuitive

    requirement classification, simpleselection criteria and automaticexception handling.

    Comprehensive ATPy Fast and precise ATP

    confirmation towardscustomers increase servicelevel.

    Analyze Plan Transact

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 32Internal

    SAP S/4HANA LogisticsSimplified Data Model in Logistics

    MSTQH MSTEH

    MSTBH MSSQH MSSAH

    MSPRHMSLBH MSKUH

    MSKAH

    MKOLH

    MCHBH MARDH

    MARCHMSTQ MSTE

    MSTB MSSQ MSSA

    MSPR MSLB

    MSKU MSKA

    MKOLMCHBMKPF

    MSEG

    MARD

    MARCMasterData

    MSEGNew

    SAP Logistics with aggregates and indicesSAP S/4HANA Logistics

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 33Internal

    Topcapabilities

    Unique value ofSAP S/4HANA

    Businessinnovations

    Solutions Quantifiablevalue

    Use case

    Material requirements planning (MRP)

    Description: Faster replanning for more frequent MRP runs in shorter cycles with global, cross-plant planning where demand information ispropagated faster through the supply chain, including supply network collaboration. Faster reactions to demand changes reduce the risk of stock-outs and allow reduced safety stocks, letting users run what-if scenarios in real time to make decisions faster (reallocation and outsourcing).

    Industry relevance: Cross-industry

    y Pre-evaluated solution proposals, with a simulation for every proposaly Flexible tailoring of available capacities and goods receipts to meet required quantitiesy Real-time inventory monitoring and automated creation of procurement proposals

    y Real-time insight into inventory postings and valuesy Increased accuracy of inventory levelsy Decreased need for safety stock

    y SAP S/4HANA, on-premise editiony SAP S/4HANA, cloud editiony SAP S/4HANA Manufacturing

    y Preevaluated solution proposalsy One-click execution of proposalsy Real-time insight into material planning KPIs

    y Improved on-time deliveryy Increased inventory turnovery Lower inventory write-offs

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 34Internal

    Business process view: Material requirements planning (MRP)

    With SAP S/4HANA:y Real-time system with KPIs instantly refreshedy Segment of one that reduces lot sizes down to single itemsy Focus on exception handling rather than standard

    processesy Inventory decrease with reliable available-to-promise check

    With traditional system:y Elapsed time does not allow real-time planningy Decisions based on old data, resulting in lower qualityy Business impact: lower forecast accuracy and

    attainment of promise date, and increase in inventory

    Release toSAP ERP demandmanagement

    Consensus demandplanning(SAP AdvancedPlanning andOptimizationcomponent demand planning,flexible planning,Microsoft Excel,and so on)

    Review plannedindependentrequirements(PIRs) Run long-termMRP (simulation)

    Pre-loaddata

    CM38Analyze capacityrequirements

    Process(optional)Analyze usageprobabilities(CBF)

    MCEAAnalyze componentrequirements

    MCBAnalyze inventory-controlling impacts

    MS70Set up datafor componentvendor analysis

    MCBSet up data forinventory-controllinganalysis

    Data download/upload

    Master datamaintenance

    Microsoft Excel(optional)

    Analyze componentrequirements (rough-cut capacity planning)

    Release tooperative MRP

    Excel/e-mailSupplier collaboration

    Iterate/simulate

    Iterate/simulate Release to SAP ERP

    demandmanagement

    Consensus demandplanning(SAP AdvancedPlanning andOptimization demand planning,flexible planning,Microsoft Excel,and so on)

    Review plannedindependentrequirements (PIRs)

    Process (optional)

    Analyze usageprobabilities (CBF)

    Release to operative MRP

    Traditional system With SAP S/4HANA

    Userinteraction

    Ad hoc

    Traditional With SAP S/4HANA

    Process excellence

    Userinteraction

    Ad hoc

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 35Internal

    Topcapabilities

    Unique value ofSAP S/4HANA

    Businessinnovations

    Solutions Quantifiablevalue

    Use case

    Advanced available to promise (ATP)

    Description: Increasing complexity can limit a manufacturers ability to provide on-time, accurate order fulfillment. SAP S/4HANA providesadvanced ATP and allocation checks as well as intelligent resource allocation and rescheduling in a single system for real-time, accurateinformation and efficient resource utilization.

    Industry relevance: Cross-industry

    y Use a single system for advanced ATP and allocation checksy Automate intelligent selection of manufacturing and fulfilment resources, including reschedulingy Provide more accurate and efficient product availability and allocation

    y Real-time availability and allocation checksy Fully automated substitutiony Single view of resource availability and scheduling

    y SAP S/4HANA, on-premise editiony SAP S/4HANA, cloud editiony SAP S/4HANA Manufacturing

    y Real-time scarce-product allocationy Automatic selection of substitutes by use casey Intelligent resource utilization and rescheduling

    y Higher order fulfilment and on-time delivery ratesy Reduced inventory carrying costsy Improved plant utilization rates

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 36Internal

    Business process view: Advanced available to promise (ATP)

    With SAP S/4HANA:y Fast and precise ATP confirmationy Lower error rates and higher service levels

    with a single systemy Automatic, high-volume rescheduling and

    resource allocation

    With traditional system:y Relevant data scattered across multiple systemsy Complex interfaces and data transfersy Performance bottleneck in rescheduling

    90

    90

    40

    20

    50

    60

    Inward movement

    Outward movement

    Availabilitydate determinedby backwardscheduling

    Earliest possibleavailability

    Replenishment lead time

    Back-order processing

    Today

    Requesteddelivery date

    Advanced planning and optimization (APO) system ERP system

    Data warehousesystem

    Transactional system

    Analyticalsystem

    InterfaceInterface

    Production lead time

    Transport time

    Demand variability

    Planning time

    Mitigate risk of delay

    Days

    Decrease ininventory and waste

    Promotion based onexpiration date

    Traditional system With SAP S/4HANA

    Userinteraction

    Ad hoc

    Traditional With SAP S/4HANA

    Process excellence

    Userinteraction

    Ad hoc

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 37Internal

    Topcapabilities

    Unique value ofSAP S/4HANA

    Businessinnovations

    Solutions Quantifiablevalue

    Use case

    High-volume inventory backflush

    Description: Traditionally, inventory status is calculated overnight, leading to unplanned shortages, production delays, and missed customerorders. Real-time, high-volume inventory backflush dramatically increases inventory accuracy, allowing for uninterrupted production, lowersafety-stock levels, and the opportunity to reduce batch sizes.

    Industry relevance: Cross-industry

    y Gain instant transparency due to real-time processing of inventory consumptiony Increase planning and forecasting accuracy with highly granular inventory analysisy Improve order fulfilment due to greater inventory accuracy

    y Merged inventory levels and activity postingy Real-time, high-volume processingy Highly granular analysis and planning

    y SAP S/4HANA, on-premise editiony SAP S/4HANA, cloud editiony SAP S/4HANA Manufacturing

    y Real-time product availabilityy Increased inventory turnovery Opportunity to reduce batch size

    y Fewer stock-outs with increased turnovery Improved order fulfilmenty Lower safety-stock levels

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 38Internal

    Business process view: High-volume inventory backflush

    With SAP S/4HANA:y Real-time inventory information, including early error

    detectiony Precise where-used information per unit.y Ability to change lot size to 1, thus capturing the

    lowest level of granularity in inventory stock keeping

    With traditional system:y Slow update cycle leads to outdated informationy Inventory planning cannot accommodate flexible,

    custom configurationsy Limited inventory visibility increases error rate and

    supply shortages

    Safety stock

    Time

    Qua

    ntity

    Reorderpoint

    Leadtime

    Order 1

    Order 2

    Order 3

    BOM 1

    BOM 2

    BOM 3

    Runinventory

    updates atnight

    Order 1

    Order 2

    Order 3

    BOM 1

    BOM 2

    BOM 3

    Ad hocactualization

    Safety stock

    Time

    Qua

    ntity

    Reorderpoint

    Leadtime

    Traditional system With SAP S/4HANA

    Userinteraction

    Ad hoc

    Traditional With SAP S/4HANA

    Process excellence

    Userinteraction

    Ad hoc

  • Industry Digital Transformation

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 48Internal

    SAP S/4HANAa huge Business Opportunity - Simple to sell

    Business Opportunity >24.000 indirect customers on SAP ERP and SAP R/3, plan the migration to S/4HANA S/4 HANA is incremental revenue with every customer Strong recommendation for every Net New Name to go for S/4HANA! Start joint S/4HANA Marketing Campaigns / Demand Generation now; move SoH leads to S/4HANAH

    SAV

    *Cash Management and Integrated Business Planning are licensed separately

    Simplicity

    SAP S/4HANA is legally a new Product

    SAP S/4 HANA will be licensed by the material SAP S/4HANA Foundation - Promotion (SKU 7018105)

    Until end of Q3/2015 all customers having licensed HANA Limited Runtime for the Suite will get S/4HANA at no additional cost

    This includes SAP Accounting* powered by SAP HANA and other Simplifications of ERP

    This includes BW on HANA (part of LREA as off Jan 1st 2015)

    Immediately ready for reselling

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 49Internal

    SAP Partner Public Demo ShowroomSAP S/4HANA Demos

    www.sapdemostore.com requires Demo Store &

    Single Sign-on Access S users will see

    scenarios that areavailable to partners

    TAGS: SoH_Relevant, S/4HANA, SoHS4H,HANA

    S/4 HANA Online Demo Scenarios (extract):

    Suite on HANA Integrated Demos: Cash Management 10136 (link).

    Suite on HANA Integrated Demos: Sales Order Fulfillment Management 10135 (link).

    Fiori Apps for Responsive Manufacturing (MFG) 9417 (link).

    Fiori Apps for R&D Engineering (RDE) 9377 (link).

    SAP Smart Business for purchasing 9214 (link).

    Supply Chain Info Center 1.0 8851 (link).

    S/4 HANA Offline Demo Scenarios (extract):

    SAP Simple Finance: The CFO Perspective 10095 (link).

    Suite on HANA: MRP Performance Optimizations with ERP on HANA 9140 (link).

    SAP Cash Management powered by SAP HANA 10073 (link).

    SAP Accounting powered by SAP HANA: Accounts Payable 9184 (link).

    SAP Accounting powered by SAP HANA: Accounts Receivable 8933 (link).

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 50Internal

    SAP S/4HANA CoachingCustomer Care Program

    RequirementsS/4 HANA Projects including S/4FinS/4 HANA Licenses signedS/4 HANA Productive Project

    NominationsProject starting before Sept 30th, 2015Support provided until project go-liveFree of chargeNominate customers via email to:[email protected]*S/4 OP 1511 (FI & Log) will be accepted untilMar30, 2016

    Coveragey Management Sponsor

    Belongs to the SAP development team. Avoid and resolve project related escalations

    y Project Coach Remote contact: Share best practices, collect feedback Ensure regular interaction with the project team Disseminates product related information

    y Project Coach Facilitates access to SAP Development organization. Follows up on product related questions Ensures customer gets a resolution to

    questions/issues Provides transparency on open customer messages

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 51Internal

    Value case: Business transformation in industrial manufacturing

    y Connected equipmenty Big Datay Industry 4.0/

    Internet of Things

    Connected designy Linking telemetry data with operational and design data provides complete

    lifecycle visibility for improved designBusiness outcome: Lower cost and higher quality

    Serving the segment of oney Better synchronization of processes, data, and tasks across the highly

    complex and interconnected manufacturing and channel value chainsy Transition from reactive to proactive by detecting and analyzing patterns and

    root causes like never beforey Improve agility in response to new technologies such as 3D printing and

    quickly adapt processesBusiness outcome: Higher revenue through faster time to market

    Connected manufacturingy Move from batch to real-time manufacturing processes such as MRP to

    always meet demandy Get real-time feeds from the Internet of Things to automate operationsBusiness outcome: Increased cost efficiency and asset utilization

    Digital coreDigital economy Digital transformation

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 52Internal

    Omnichannel customer servicey Seamless customer relationship management, sales, and service across

    different channelsy Addition of Web channel to enable convenient customer interactionBusiness outcome: Increased revenue and customer loyalty

    Profitability optimizationy Full insight into profitable customers/segments and margin destroyersy Targeted, insight-driven, optimized, and tailored action (for example,

    campaigns and special offers using different channels) to best utilize assetsand resources

    Business outcome: Increased margin and profit

    Connected vending machine salesy Service to your customers with products where and when they need themy Full insight into buying patternsy Timely and efficient replenishment signalsBusiness outcome: Increased customer loyalty

    Value case: Business transformation in wholesale distribution

    y Omnichannelcommerce

    y Internet of Thingsy Big Data and

    insight-drivenwholesaledistribution

    Digital coreDigital economy Digital transformation

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 53Internal

    y Mobile retailingy Omnichannel

    retailing

    y Insight-drivenretailing

    Value case: Business transformation in retail

    Contextual marketingy Target segment of one on the fly with real-time contextual informationy Gain insights into customer sentiments, hidden trends, and motivationsBusiness outcome: Increased revenue from cross-selling and up-selling

    Optimized assortmenty Quickly determine best prices and promotions despite data volumesy Optimize assortments by understanding the contribution of each SKUBusiness outcome: Reduced revenue loss caused by stock-outs and higherprofitability

    Personalized engagementy Personalize one-to-one offers based on real-time recommendationsy Influence behavior with real-time access to all buying preferencesBusiness outcome: Reduced churn while increasing loyalty

    Digital coreDigital economy Digital transformation

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 54Internal

    y Connected cary Big Datay Industry 4.0

    Value case: Business transformation in automotive

    Optimized manufacturingy Move from batch to real-time MRP to always meet demandy Get real-time feeds from IoT to synchronize assembly line with ERPBusiness outcome: Increased cost efficiency and asset utilization

    Personalized driving experiencey Personalize services and offers to people as they drive (fueling and parking

    options) based on real-time contextual informationy Perform predictive analysis to discover hidden trends and gain insights into

    driver behavior and preferencesBusiness outcome: Improved customer service and loyalty

    Predictive maintenancey Get sensor data to instantly assess the condition of equipmenty Predict breakdowns to proactively perform maintenanceBusiness outcome: Lower maintenance and service costs and better service

    Digital coreDigital economy Digital transformation

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 55Internal

    Value case: Business transformation in automotive R&D

    Optimized data managementy Streamlined, end-to-end data management, from generation to analysisy Real-time feeds of vehicle data (onboard unit) combined with structured (GIS)

    and unstructured (weather and road condition) dataBusiness outcome: Reduced cost through optimized data flow and moreefficient testing

    Real-time control of vehicle testy Tracking of all information of all prototypes and test vehicles without delayy High transparency regarding status and location of prototypes, test vehicles,

    modules, and components on test benchesBusiness outcome: Lower cost and higher vehicle quality

    Accelerated product developmenty Better synchronization of processes, data, and tasks across the highly

    complex and interconnected vehicle development processy Faster detection and analysis of patterns and root causes like never beforeBusiness outcome: Higher revenue through faster time to market

    y Connected cary Big Datay Industry 4.0

    Digital coreDigital economy Digital transformation

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 56Internal

    Value case: Business transformation in aerospace

    Predictive maintenancey Get sensor data to instantly assess the condition of equipmenty Predict breakdowns to proactively perform maintenanceBusiness outcome: Lower maintenance and service costs and improvedservice

    Optimized manufacturingy Move from batch to real-time MRP to always meet demandy Get real-time inventory feeds from connected manufacturing operationsBusiness outcome: Increased cost efficiency and asset utilization

    Business model transitiony From buying to leasing to service subscriptiony Granular profitability analysis and billing capabilityBusiness outcome: Higher revenue through increased market penetration

    y Connected jet enginey Industry 4.0y Geospatial Big Data

    Digital coreDigital economy Digital transformation

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 57Internal

    Value case: Business transformation in travel and leisure

    Contextual marketingy Targeting segment of one on the fly with real-time contextual informationy Insights into customer sentiments, discovering hidden trends and

    motivationsBusiness outcome: Increased revenue from cross-selling and upselling

    Smart trafficy Real-time operational awareness and control of trafficy Vehicle condition tracking and analysisy Travel pattern analysis using impact and what-if scenariosBusiness outcome: Smoother traffic flow and higher passenger satisfaction

    Personalized engagementy Seamless passenger journey across all touch points and

    channels, providing a single view of the travelery Integration across sales, service, marketing, and commerceBusiness outcome: Increased satisfaction and loyalty

    y Big Datay Social networksy Devices

    Digital coreDigital economy Digital transformation

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 58Internal

    Value case: Business transformation in cargo transportation andlogistics

    Connected logisticsy Monitor transportation units and collaborate with partnersy Gain real-time transparency of transportation progressy Get up-to-date information on traffic and recommendationsBusiness outcome: Higher turnover and throughput and reduction of carriers idletime

    Smart fleety Enable real-time tracking and control of moving assetsy Gain insights into vehicle location, diagnostics, driver behavior, and fuel

    consumptionBusiness outcome: Improved asset utilization and service levels, reducedoperational costs, and increased safety

    Predictive maintenancey Receive sensor and telematics data to instantly assess the condition and

    health of assetsy Predict breakdowns to proactively perform maintenanceBusiness outcome: Lower maintenance and service costs and higher assetutilization

    y Business networksy Big Datay Internet of Things

    Digital coreDigital economy Digital transformation

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 59Internal

    Value case: Business transformation in defense and security

    Real-time situational awarenessy All information for all decision makers in military staff and information

    domains accessible in real time and visualized in a geospatial CxO cockpitfor defense

    y High transparency regarding status and geolocation and prediction oftrends correlated with real-world information

    Business outcome: Better-informed decisions

    y Situational awareness(CxO cockpit fordefense)

    y Collaborative action(people)

    Digital coreDigital economy Digital transformation

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 60Internal

    3 + 1 takeaways

    y Is the digital business foundation to lead in the digital economy

    y Is designed to drive digital transformation across business functions and industries

    y Is unique in the market today user-empowered, process-enriched, live insight

    y Start to define your digital business vision and identify the value today

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 61Internal

    Value identification workshopPlan for SAP S/4HANA success

    1- to 1.5-day innovation-focused workshopLearn the value of real-time business

    Best practices from SAP experts based on customer insightAccelerate adoption of SAP S/4HANA

    Introduction of innovation areas for your organizationMatch challenges to benefits of SAP S/4HANA

    Use of a defined framework to discover business scenariosMove quickly from vision to realization

    PlanIdentify key

    business scenarios

    Value identificationworkshop

    Contact your SAP account representative to get started

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 62Internal

    Where to go for more information

    DiscoverSAP S/4HANAsap.com/s4hana

    SAP S/4HANAtrial

    sap.com/s4hana-trial

  • 2015 SAP SE or an SAP affiliate company. All rights reserved.

    Thank youWill YeldellSolution Center Applications Expert for North AmericaGlobal Partner OperationsTwitter @SolCenterNA

    SAP America, Inc.1001 Summit BoulevardAtlanta, GA 30319O +1 404-943-2551F +1 610-848-9616mailto:[email protected]

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 64Internal

    2015 SAP SE or an SAP affiliate company. All rights reserved.

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    In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to developor release any functionality mentioned therein. This document, or any related presentation, and SAP SEs or its affiliated companies strategy and possible futuredevelopments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any timefor any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. 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 placeundue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.