Cio forum s4hana

SAP HANA, S/4 HANASimplification and Flexibility

CIO ForumJune’2016

Ajay Kumar Uppal

What is S/4HANA?SAP Business Suite 4 SAP HANA’ or ‘SAP S/4HANA’ is:• SAP’s next generation Business

Suite• a completely new product (new

data model / new code line) and not the successor of SAP ERP

• fully built on the most advanced in-memory platform - SAP HANA

• is designed with the most modern user experience (UX) - SAP Fiori

S/4HANA is the ‘license perspective’ – form the application perspective we are talking about:• HANA Appliance• SAP ERP powered by SAP HANA• Simple Finance Add-On

SAP’s HANA Innovation OverviewArchitecture illustrations & HANA offerings in the area of ERP

HANA platform (data

mart)

HANAapps for Suite

HANA accelerators

Cloudon HANA

BWon HANA

Business One

on HANABusiness Suite

on HANA S/4HANA

Side-by-side scenarios Integrated scenarios New frontiersHANA RDS

•SAP HANA DB•Custom data mart/ any app•BOBJ BI•Visual Intelligence•Text & predictive analysis

•Liquidity Risk Management•Operational Process Intelligence

•CO-PA Accelerator•Finance and Controlling Accelerator

•Business Intelligence on demand•Sales & operations planning

•BW powered by HANA•Business planning & consolidation on HANA

•Business One on HANA•SAP Business One Analytics on HANA•HANA new analytics

•Business Suite on HANA•HANA new analytics

•Simple Finance•Simple Logistics•Simple xxx

SAP BOBJ BI, VISAP

Business

Suite & any app

Data

mart

Any DB

HANA

DB

SAP Busine

ss Suite

Apps

Any DB

HANA

DB

Client

SAP Busine

ss Suite

Any DB

HANA

DB

SAP Busine

ss Suite

BW

Any DB

HANA

DB

SAP Business Suite

HANA DBERPCRMSCMSRMPLMVDL

BWApps

HANA

DBAny DB

Client

OD/SF solutions

HANA DB

S Innovations

SAP Business

One

HANA

DBMS SQLAr

chit

ectu

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ANA

offer

ings

Timeline

Our analysis Identified the following key insights at one of the largest FMCG Transaction Processing Business Insights Risk, Compliance and Controls

• Time-consuming month-end close process

• Complex finance and operational regulations

• Consolidated reporting is very cumbersome

• Organizational structure doesn’t align with current /future reporting needs

• Inconsistencies in the setup and use of Chart of Accounts

• Disparate fixed asset accounting systems

• Redundant master data / inconsistent data

• Cumbersome multi-GAAP reporting options with Special purpose ledgers

• No standard way to achieve balanced segment reporting for SEC/IFRS

• Cross Region and Country Business processes are not integrated due to Classic General ledger

• Manual Master Data maintenance and manual governance process

• Intercompany Reconciliations• Foreign currency revaluations during the

Month end close cycle• Complex Procure to pay cycle ( Account

payables) and out going payment cycle

• IT systems take long time to run the reports due to volume of data

• Finance users are tied-up with transaction processing versus providing insights to customers & Management for Reporting

• Long planning and budgeting cycles due to lack of integration (HFM)

• Lack of rolling forecasting capabilities to respond more quickly to business needs

• Multiple versions of truth, since data is not integrated between planning and consolidation systems

• Current IT systems are not quick to adapt to business changes in case of any mergers or realignments

• Poor reporting capabilities related to customer and product profitability analysis

• No single source of dashboard and score-carding capabilities to link strategy to execution

• Out going payment setup and processes are 40% manual.

• Multiple compliance requirements • Limited visibility of the enterprise-wide

risks • Compliance is silo-ed with Manual

processes • Higher duties from not leveraging trade

agreements • Increasing complexity of regulations and

policies • High cost to establish and maintain

compliance • Risk information not relevant • No consolidated view of risks • No strategic context

Process Process –Cont’d Data & Applications

• Country specific Legal Reporting due to lack Parallel Ledgers and New General ledger functionalities

• Reconciliations between Special purpose ledgers and standard ledgers ( USGAAP)

• Long planning and budgeting cycles due to lack of direct integration ( SAP Vs Hyperion )

• High degree of manual intervention in the financial consolidation process (SAP SEM- BCS) and lack of Matrix Consolidation combination of Profit Center & Company Code

• Manual reconciliation across systems • There is no direct Supply chain Process

integration with ERP Financials, CO-PA and CO-PC

• Lack of Transfer price set up and deferred tax calculations

• Management Reporting and decision making – there is no real time management reporting analysis tool which is integrated with COPA and SAP Financials

• Product Hierarchy- Current Management Reporting at Brand and Size level, there is no SBU, Category, Product Group and SKU level Management Profitability Analysis

• Complex Workflow structure and approval process with in the Account Payables for 2 way match purchase order process

• Country specific tax calculations and remittance issues ( Income Tax, VAT and Excise etc.)

• Perform COPA Reconciliation for FPLC and GMC

• Logistic, GMC, PPV and PSV Cost Reclassification

• FIRM Forecast - Shipment forecasts for next fiscal issued to producing plants by GBU Category Planning

• The CPW (Cash Position Worksheet) is an excel tool used by Cash Managers to execute the daily cash management process.- this is not a real time and process consuming.

• Current Annual Operating Planning ( Cost Planning) is very cumbersome and delaying the Annual Operating plan Management Reporting

• There is no direct Actuals + AOP+ Forecast Versions comparisons in the Planning Cycle

• There is no direct integration between Planning & Consolidation tools for ACT , PLAN version consolidation

• No Real Time SG& A, Indirect SG&A and TPM related allocations in the profitability Analysis

Data• Redundant master data / inconsistent data

between supply chain and financials systems

Applications • Unused custom objects : Programs,

transactions, forms, queries• Highly customized Cash pool applications

and Bank communication management for vendor payments

• Limitations in COPA reporting (FIT Application) , need more dimensions for the management reporting ( Ex : SBU, Size, Category, Product Group and SKU level)

• Unused custom objects : Programs, transactions, forms, queries

• Multiple Treasury legacy applications Treasury and Risk Management across regions ( 20+ applications)

• Multiple Financial Accounting related legacy applications and their integration with SAP

SAP Simple Finance (sFIN) Moving toward a Real Time Finance organization

Single Source of Truth

Central journalReplicate accounting records from legacy systems in real-time into a virtual central journal

Shared data and methodsShare data, data models, and methods that are stored within SAP HANA across solutions

New accounting architectureReporting on the fly based on individual records with one logical document for both FI and CO

Real time month end closeAccelerated close with intra-month reconciliation for real time reporting and pre-close simulation

Real time personal analyticsFlexible analytics for instant data access with drill-down along any dimension down to line item level

Next gen user experienceNew role based user interfaces with embedded real time analytics and mobile access for business users

Real Time Finance

Integrated business planningFacilitate collaborative planning processes, linking departmental plans to a central plan

Dynamic business planningProvide new user experience for driver based planning, simulations, and predictive forecasting

Single analytical solutionProvide single solution for planning, real time consolidation, profitability analysis, and reporting

Insight and Foresight

The S/4HANA – Promise: Simplification to increase Enterprise Efficiency

It‘s about simplicity!System Landscape

Simplification

Data Model Simplification

UX Improvement

Business Process Simplification

Source: SAP

Data Model Simplification System Landscape Simplification

Business Process Simplification UX Improvement

HANA Value, Improvements and KPIs Supply Chain Accounting (SCA)

sFIN – Measure, monitor, control and predict enterprise performance

Enabling Capabilities• No more batch jobs, elimination/ acceleration of batch

jobs and real time reporting information allowing instant insight-to-action and analysis

• Real time analysis of actual cost across a plant, multiple material groups etc. and achieve greater granularity with in reports

• Consistency of reporting with a single source of consistent data for all transactions, analytics, and reporting

• Reduce the closing time of your companies by accelerating long-running, period-end processes like profitability allocations or actual costing via material ledger

• Improve quality and reduce risk through real-time analytics within any timeframe and dimension. Deliver on-time results on all audit and analysis-related data inquiries.

• Smarter and faster reconciliation of invoice receipts and goods receipts

• Helps gain access to large volumes of data from cost and material ledgers – quickly and easily – and improve decision making through accelerated reporting, analyses, and period-end closings.

• Model and Simulate optimization initiatives of tactical or strategic nature across the company

• Profit and cost by customer, product and channel and Role-based dashboards and KPI content

Business Impact• 420 Hours less processing time at quarter

end close• 81/2 day closing, including group

consolidation• 40% shorter monthly close anticipated• 100X average improvement in amount of

time required to run reports

44% Fewer finance full-time equivalents (FTE), when using transactional sub processes with streamlined, automated, and integrated core finance processes26% Fewer days to close annual books, when AP system is integrated with G/L and reconciliations are not needed

• 26.1% Fewer days to close the books• 92.9% faster transfer of material ledger

data(7 hours to 30 minutes)• 50% correction in GL posting corrections• 60% reduction in time to reconcile revenue

recognition issues• 70% reduction in time to resolve allocations• >400 hours cut from financial close processes

Pain Points

FI-AA: • Long-time running

jobs/reports/ programs – Critical timely esp for Month End

Costing Accounting: • Numerous

customization catering only the current need

• Changes in business requirement – new developments

Profitability and Controlling Analysis : • Lack of SBU

category, product group and SKU level management profitability analysis

Collaboration Finance Management

sFIN – Standardize and automate financial operations and transactional processes

Enabling Capabilities

Receivables Management:• Faster dispute resolution and Lower days sales

outstanding (DSO)• Improved cash flow and Lower write-offs• Higher productivity and Higher process

efficiency• SAP HANA revolutionizes the handling of

incoming bank statement items and improves unstructured searches, boosting the productivity of clerks.

Shared Services Framework:• Significantly lower the entry barrier for a

shared service delivery infrastructure • Gain analytical insight into your overall

financial performance • Enable call-center agents to access and

manage customer accounts • Streamline call center requests that can help

resolve customer issues • Customers, suppliers, employees, and

managers can consume finance-relevant information and services through automated self-services

Business Impact• 3x Lower finance cost as a

percentage of revenue• 10 Days sales outstanding reduction• 25% lower accounts receivable

write-offs when receivables are integrated with credit, billing and collection systems

• 57% lower finance cost as a percentage of revenue for automated versus automated companies

• 70% of leading companies integrated billing and collections with order entry and credit with no duplicate data entry

• 9% Targeted net productivity improvement in 2012 among finance organizations globally

• 47% Lower finance costs as a percent of revenue by automating transactional processes and self-services

Pain Points

• Great amount of effort spent in manual data collection and prioritization• Slow dispute resolution

Adoption to business network

Enterprise Risk and Compliance Management

sFIN – Assess risk with insight to support immediate remediation activities

Enabling CapabilitiesEnterprise Governance, Risk and Compliance:• Dashboards and preconfigured report templates help

you handle ever-increasing data volume• Data variety easily by speeding the aggregation,

integration, and analysis of market, operational, credit, and liquidity risks.

• Enterprise risk reporting enable the integration of your most relevant metrics for all risk categories.

Fraud Management:• Real-time monitoring of transactions and more timely

access to audit information and better collaboration• Analytics for fraud investigation to uncover hidden

trends• Remediate violations associated with segregation of

duties and critical access in real time.• Higher audit productivity due to more intuitive user

experience

Global Trade Compliance:Benefit from greater and timelier access to data for monitoring and reporting purposes. Speed, Agility, and Accuracy of global trade, special customs procedures, and sanctioned-party screening.

Business Impact• 31 % Lower compliance and risk

management FTEs per US$1 billion revenue when compliance issues and reports are regularly sent to management, auditors, and IT

• 50%-70% More efficient reporting with integrated internal and external finance and risk reporting

• 100% segregation of duties in proving errors or fraud and sensitive authorization for case monitoring

• 20% more efficient asset maintenance processes

• 90% of companies that have integrated governance , risk, and compliance have had results that met or exceeded their expectations

• 5% of revenue are lost to fraud each year by a typical organization

• 25% Year-on-year productivity increase reaching 100% for Fonterra in 4 years

• 35% Increase in internal trade compliance rating for Applied Biosystems

• 2x The amount of international shipments processed in a day by Pelican

Pain Points• Multiple compliance requirements • Limited visibility of the enterprise-wide risks • Compliance is silo-ed with Manual processes

• No Strategic context• Non-Compliance

controls in the process

• No Consolidated view of risk

• High costs, the risk of trade penalties and fines, and clearing outbound and inbound customs faster and to maintain compliance

• Increasing complexity of regulations and policies

Simplification of Data Models – The SAP Vision



AccountingMaterial LedgerLogistic

Busin

ess

Suite

S In

nova

tions

• Reduced data footprint• Increased througPROVIDEREut

– elimination of locks– Parallel postings enabled

• Single source of truth (all dimensions, line items)

• Flexible data model adoptions (customer fields)

• Easy report adoption (only 1 table)

MARCMLHD

MSEGMARCMLPP

MDOCMaterial

BSEG COEP

BKPF

ACDOCA

Material Prices

SAP Integrated Business Planning (IBP)

12

Planning and Visibility powered by HANA on the Cloud

Sales and Operations Planning• Integration to Financial Planning• Balancing Supply and Demand with

Financial Plan• Supports collaboration • What-if Analysis

Demand Planning• Demand Sensing• Statistical Forecasting• Incorporation of various data sources

(e.g. POS)• Collaborative Demand Planning

Supply and Response Management• Short Term Supply/Demand Matching• Scenario Planning. Simulation, What-if• Constrained or unconstrained planning

Develop Rough cut capacity plan• Multi level sourcing determination

Inventory Planning• Multi Echelon Inventory optimization• Inventory target setting• Feeds Operational plan

Control Tower• Actionable Analytics• Works on SAP and non-

SAP• Alerts and what-if

analysis• Standardized metrics• Notification processes

Integrated Business Planning (IBP)

Simplification,

Harmonization, and Acceleration

• Separate systems for ERP-based planning and standalone planning tools

• Planning and data silos• ETL processes with long running batch-

jobs• Many manual steps

• Single system on HANA• Direct access to ERP actual and master

data• Combined PAK/ BPC Planning Manager• Common Excel and Web UI

* BPC NW 10.1 = Combined PAK and BPC Planning Engine** PAK = Planning Application Kit = ‚HANA Version of BW-IP‘

* SAP Business Planning and Consolidation** SAP Business Warehouse Integrated Planning

BPC * BW-IP **

ERP MS Excel files

SAP HANA Platform

PBC NW 10.1 *

ERP

UI

S/4HANA: ERP with combined PAK** / BPC



Closing process - fast close enablementA typical customer situation



Current Process• Plenty of operative entities & branches with a huge number of activities per

closing entity • Significant transaction volume at month end and time-intensive posting

cycles for mass data processes (e.g. order settlements, deferrals, accruals, assessments)

• Significant effort for internal (non legal) booking to reflect special ledger cases

• Many interim steps for the reconciliation of data• Little transparency into local closing activities and their dependencies

With SAP Simple Finance

• Shorten process time and effort due to real-time data availability because of• significantly reduced run time of reports • automation and elimination of batch processes

• Elimination of closing activities (such as FI-CO reconciliation, periodic asset transfers)

• Increased efficiency of finance activities due to drill down from report to corresponding transactions without distraction.

• Better alignment and reduction of iterations due to increased visibility into the progress of local closing activities

• Increased accuracy due to automated quality checks

New User Experience to increase ProductivityFiori Apps and BI Front-end for simpflified user navigationSample findings from SAP‘s performance simulation for task “clear incoming payments” - SAP Simple Finance (Fiori) vs. Classic FICO (SAP GUI): • 53% faster• 55% less clicks• 96% less screens• 66% less input fields

• Role-based instead of transaction based navigation• Identical UI across the devices• Includes collaboration

functionalitiesFiori Apps Types• Transactional:

task-based execution of activities• Analytical:

Smart Business cockpits and Factsheets

SAP Fiori Launched as the central entry hub

Source: SAP

Fiori

GUIExceletc

Old functions

New functions

Project lifecycle



Continuous Renewal of UIs

Benefits of S/4HANA Single source of truth for operational and analytical data bases One source for financial and management reporting (Universal Journal) Consolidate data from distributed financial systems in one storage

(Central Finance) Real time reporting with highest granularity – reporting on line item

level Access to all relevant dimensions from FI and CO Self service reporting and analytics with fastest response times Planning application integrated with ERP Acceleration of processes (no batch jobs) Fundamentally increased throughput (parallelization, no aggregates, no

locking) Intra month closing (processes and simulations) – ‚soft close‘ Consumer grade user experience : Fiori Apps, Smart Cockpits, Analysis for

Office, HTML5 Identical UIs across all devices Role based user navigation

Insight

Single source of truth

Efficiency

What is the Challenge?

Transform your F&A towards a real-time Finance

New technology – new business opportunitiesThink beyond speed – factors that impact optimization and rationalization programs

• System landscape simplification and consolidation

• Application modernization• Application harmonization• Business Process optimization and

innovation

$€ ?+ -

improved processestime savings cost of maintenance

revenues Customer satisfaction costs

agility growth

Innovation

Transfering speed into Business BenefitsThink about the potential to

• replace legacy systems • run multiple SAP systems on the same

HANA platform• consolidate SAP ERP systems• eliminate ETL processes • replace modifications and customer

code• performance optimize your custom

reports• optimize your reporting data quality • streamline business processes and

replace workarounds• Deploy new features and functions• increase the system usability from the

user perspective (user experience)

=

Define your transformation roadmapUtilize the simplification potential of S/4HANA to transform your Fiancne & Accounting

Hosting OptionsOn Premise

Managed CloudPublic CloudHybrid Model

UI ConceptSAP GUI

WebDynproFiori

Architect. OptionsSide car

UpgradeSystem

Consolidation‘Central Finance’

Transition Options

Migration Path

Functional Upgrade

Custom Code Optimiz.

Integrated Planning

Predictive Analysis

Customer Extensions

Proof of Concept

SAP ERP

Uncertain what the best strategy is?

Further AspectsTiming & Sequence

AMS

There is no one-size-fits-all solution.

Design your target picture and determine the optimal transition path, depending on your strategy, IT environment and business constraints

Strategy ExampleFinance Transformation and SAP Optimization

Finance Transformation and RationalizationVision• Reduce application footprint and

make one global accounting system• Move toward strategic solutions• Modernize and re-platform with

simple financeOutcome• Reduce applications footprint and

move to strategic solutions• Retire obsolete/minimal use applications

where applicable

SAP OptimizationVision• Reduce overall SAP TCO - applications and infrastructure• Leverage full potential of SAP products and modernize current

SAP portfolio• Increased productivity with enhanced and simplified user

experience• Operate globally on your template business processes (harm. &

simplified)• Maintain the “Best In Class” and Fast close SAP Landscape and

ArchitectureOutcome• Overall SAP TCO reduction & Reduce Month end closings• Leveraging Standard SAP – Back to Standards with simple

finance• Activation of new functionalities and new modules with New GL• Deployment of harm. and simpl. E2E business process across

all SAP inst.• KPIs for business process performing monitoring and

optimization.• Deploy and train the users on new enhanced and simplified

user interface.• Optimized and simplified SAP landscape including processes

and tools.

Key Influencing Factors• Concurring projects (e.g. consolidation, changes to interfaced systems)• Existing systems

– Release and SPS levels– Data quality, documentation– No. of custom code, objects and tables

• Non released Business Functions or Industry Solutions in place• Level of process harmonization• Existing system configuration and availability of new functionality• New G/L with extended functionalities (e.g. document split) in place or planned• Design of profitability accounting (CO-PA)• Future systems (willingness to accept standards, „best in process“; appetite for change)

Wave- 0 Wave- 1 Wave- 2HANA Deployment Simple finance add-on installation

1. Real Time Reporting2. Financial Closing process3. COPA- on HANA + Account based COPA

Roadmap & Real time Reporting4. GR-IR Reconciliations5. Product Costing Closing includes material

ledger performance improvements6. Real time and online intercompany

reconciliations ( ICR)7. Cash and Liquidity Management8. (Smart Cash Management )

New General Ledger is migrated

• New General Ledger• New Asset Accounting • Further reporting scenarios to leverage one

document • Prepare adoption to new physical document • Merge Consulting Ledger, A/R-Reporting and

Profit Center Ledger (Actual figures) • Switch selected consolidation reporting to sFIN

(former Profit Center) • Combined Data Aging – FI/CO • Embedded Planning • Leverage further processes functionality e.g.

Segment Reporting, online split along Profit Center..

• Smart Cockpits and New User experience ( Fiori and Lumira)

Central Journal

• Financial consolidation ( Real time Consolidation)

• unified Integrated planning for AOP, Plan and Forecast

• Migrate from Costing based Profitability analysis to Account based Profitability Analysis

• Payments and Bank Communications• Financial Shared Services • Audit and Compliance management• (Audit Management)• Receivables and Payables Management• Financial Supply Chain Management• Collection Management• Dispute Management

• Leverage simple FIN to improve performance

• Significant reduction of Data memory footprint

• First scenario on improved transparency due to integrated FI/CO View

• Embedded BI (interims approach) • First scenario on improved transparency due

to integrated FI/CO View • Enjoyable Finance transactions with FIORI

transactional Ap• High value business insights with FIORI

smart business • Technical clean up• Use the Ehp 7 functionalities

• First scenario on improved transparency due to integrated FI/CO View

• Enjoyable Finance transactions with FIORI transactional Apps

• High value business insights with FIORI smart business

• Easy to consume reporting

New GL Benefits• Online Splitting • Parallel Accounting by Parallel Ledgers • Profit Center Accounting in New GL • Segment Reporting in New GL • MRE Reporting

• Real Time Financial consolidation• Unified Integrated planning• Smart Cash Management functionality

trough FIORI Apps (transactional / analytical)

• Integrated FI/CO View • Profit Center Accounting within simple

Finance • Smarter Operations – one document

provides more business insights cross applications

Typical Transformation to Simple Finance

Deployment ScenariosNet-new ERP customers- greenfield/ brownfield

Installed-base customers – ERP

upgradeInstalled-base

customers Subsidiaries

Key scenarios:• Accounting and

financial close• Treasury and cash

management• Integrated

business planning• Central Journal• Collaborative

financial operations

• Enterprise risk managementOn premise

HANA-as-a-ServiceHybrid

On premiseHANA-as-a-

ServiceHybrid


financial close• Treasury and cash

management• Integrated

business planning• Central Journal

Key scenarios:• Central Journal• Integrated

business planning• Treasury and cash

management


financial close• Integrated

business planning• Collaborative

financial operations

On premiseHANA-as-a-

ServiceHybrid

HANA-as-a-ServiceHybrid

On premise

Deployment Options System Landscape Optimization Migration Scenarios UX Improvement

Examples

System Landscape Optimization and Application Modernization

System Consolidation Central Finance

Non SAP

SAP ERP 6.0 <

EPROVIDERE7on AnyDB

Non SAP Non-SAP

X

SAP ERP EPROVIDERE7on HANA + Simple Finance 2.0

SAP ERP EPROVIDERE7on HANA + Simple Finance 2.0

X

from ...

to ...

Real-time Replication

Non SAP

SAP ERP 6.0 <

EPROVIDERE7on AnyDB

Non SAPNon SAP

SAP ERP 6.0 <

EPROVIDERE7on AnyDB

from ...

to ...


X X

EA_APPL 617

Transition to Simple FinanceWhat are the pre-requisites?

There are technical preconditions and functional restrictions that must be considered:• Upgrade of Financial

components such as SAP_FIN• Check whether not released

Business Functions are used (such as Lease Accounting Engine)

• Technically you have to migrate to the new G/L and to the new Asset Accounting (this will be done automatically)

SAP HANA 1.0

SAP NetWeaver 7.4

SAP_BS_FND 747SAP HANA Live 1.0

SAP_FIN 700

EA_FIN 700

SAP_APPL 617

EA_FINSERV 617

FSCM_CCD 700

FINBASIS 747

SEM-BW 747


How can I get there?sFinance 2.0 (S/4HANA)Non SAP

SAP ERP < EPROVIDERE7

on AnyDB

SAP ERP EPROVIDERE7on HANA

SAP < ERP 6.0on AnyDB

SAP ERP EPROVIDERE7 on HANA + sFinance 1.0


Implementation

SAP ERP EPROVIDERE7on AnyDB

Upgrade

Migrate

Update + Migrate

Install + MigrateUpdate

Install + Migrate

New Custome

rsNon HANA SAP SAP Business Suite

on HANA SAP S/4HANA


How can I get there?sERP 1.0 (S/4HANA EPROVIDERE8 ~ in Q4/ 2015)


Implementation

Upgrade

Update + Migrate Install + Migrate

Update

Install + Migrate

New Custome

rsNon HANA SAP SAP Business Suite

on HANA SAP S/4HANA

SAP ERP EPROVIDERE8 on HANA + sERP 1.0


Update


Non SAP

SAP ERP < EPROVIDERE7

on AnyDB

SAP < ERP 6.0on AnyDB SAP ERP

EPROVIDERE7on AnyDB



PROVIDERE SAP Solution Analytics – SAP Fiori AnalysisSAP Fiori Apps rated by Relevance & Goals


The PROVIDERE Transformation Approach

PROVIDER: End-to-End Solution ProviderHigh Level Approach

Strategize

PROVIDER SAP Solution Analytics / PROVIDER Transformation Services

• Target Architecture

• Infrastructure

• Migration Method

• Deployment Scenario

• Replacement of legacy systems

Syst

em L

ands

cape

Opt

imiza

tion

• PoC scope• Upgrade Plan• Functional

enhancements

Assess Prepare Realize Manage

• Sizing• Infrastructure

requirements

• PoC implementation and review

• Custom Code Analysis

• Set-up PoC environment

• Set-up & configure Infrastructure

• Detailed Migration Plan

• Test Plan• Sandbox

Migration• Business

Blueprint• Authorization

Concept

• Set-up & configure Infrastructure

• DB Migration• Migration of

Non-Product. Systems

• Migration Tests• Product.

Migration• Custom Code Adjustment

• Customizing• Authorizations• Tests

• Performance Monitoring

• Archive legacy systems

• Functional enhancements

PROVIDERE SAP Consulting Services

Busin

ess P

roce

ss O

ptim

izatio

n

Appl

icatio

n M

oder

niza

tion

& Ha

rmon

izatio

n

The Migration to Simple FinanceStep-by-Step ApproachDesign process reengineering (blueprint) custom code and interface analysisdefine reporting

Data base migration, installation of Simple Finance customizing (new G/L, AA, CO-PA)data migration

Set due dates and offsetting accounts in FI doc. Data Aging tests/ release system

Implementation of Fiori Apps, HANA Live Views functional enhancements: e.g. planning scenarios, closing cockpit, etc.

Decomposing the implementation scope

• Technical Migration to S/4HANA

• Replace batch-processes and utilize performance improved transactions

• First reporting scenarios for Universal Journal

• Optimize operational reporting via HANA Live views

• Document split• Implement selected Smart

Business Cockpits and Fiori Apps

• Further improve custom code• Data Aging

• New Cash Management• IBP scenarios• Further Fiori Apps

• Discover innovation areas• Evaluate potential

benefits and feasibility (constraints, risks, impact)

• Cluster use cases• Define short-term,

medium term and long term project roadmap

Potential Benefits

Feasibility

Wave IWave II

Wave III

Wave I Wave II Wave III

PROVIDER SAP Process & System Landscape Optimization

• Plant Relocation • Chart of Accounts Harm.• Master Data Harmonization• Profit / Cost Center Hierarchy

Restructuring

Renovation & Consolidation

Restructuring & Harmonization

Merger & Acquisitions

Carve Out’s & Divestitures

• Consolidation of SAP Systems• Carve Out and Migration of

acquired company structures

• Carve Out of Company Codes via Clone & Delete• Carve Out of Company

Codes / Structures via selective Migration

• SAP Consolidation • SAP Migration across

releases• NearZeroDowtime

Upgrades• Selective Data Migration• Data Provisioning &

Masking for Test Systems

HANA

PROVIDERE has a proven track record of performing SAP Transformation efficiently using a robust tool based approach to streamline the project planning & execution!

HANA

HANA

HANA

Simple Finance 2.0: The Universal JournalLedgerCompany CodeAccountAmount 1Amount 2Amount 3

LedgerCompany CodeAsset No.Amount

Operating ConcernMarket SegmentCost ElementAmount

Controlling AreaCost ElementAmount 1Amount 2

Company CodeMaterialAccountAmount

Universal Journal (Table ACDOCA)

General Ledger Asset Management

Profitability Accounting

Controlling Material Ledger

Doc. No. LedgerCompany

CodeAccount/ Cost

ElementAsset No.

Profit Center

Controlling Area

Operating Concern

Sales Order No.

Market Segment

MaterialCustomer

FieldAmount 1 Amount 2 Amount 3



User Navigation SimplificationData Model Simplification System Landscape

SimplificationBusiness Process

Simplification UX Improvement

Cash Management – Integrated Scenario for your Liquidity ManagementFrom heterogeneous landscape to integrated cash management



User Navigation Simplification

SAP ERPA/P, A/R, Cash Mgmt

PlanningAnalysis

SAP ERPA/P, A/R, Cash Mgmt

OtherA/P, A/R, Cash Mgmt

S/4HANA Cash Mgmt,Planning,Analysis

SAP ERPA/P, A/R

SAP ERPA/P, A/R

OtherA/P, A/R

S/4HANAA/P, A/R,

Cash Mgmt,

Planning,Analysis

Global Treasury PlatformExtended Functionality through Integration of Single Processes

Fully Integrated Cash ManagementFull Integration of Business Suite in SAP HANA and Simple Finance

Option A:

Integration

Option B: Sidecar



Role-specific

Anywhere No latency

Static reports Back-office

Periodic updates

Preparation

Clarification with customer

Review open cases

Monthly1

2

3

Continuous review

Resolution with customer

Continuous and alert

driven

Process Simplification Example: Continuous Cash CollectionsFrom administrative process to customer intimacy



User Navigation Simplification

Source: SAP



Central Finance : From Reporting to Process ExecutionMore than only centralized reporting

Non-disruptive step towards system consolidation

Centralized accounting as enabler for business process harmonization and centralization(customer example)

Source: SAP



Thank You

Ajay Kumar Uppal+44-77699-31607

Process Issues Process Issues –Cont’d

• financial consolidation process (SAP SEM- BCS) and lack of Matrix Consolidation (combination of Profit Center & Company Code)

• No Restatement functionality• Local closing and Group /Corporate Closing

process issues and Multi period Consolidation• Status Reporting in BI• Held and Sample Documents with in the

consolidation process• Database list improvements required • Current Data Collection process is very slow and

manual layouts and manual file uploads in the Consolidation application

• There is no Status Management• There is Workflow Approval for status change in

the financial consolidation monitor

• Deferred Taxes per Balance sheet item• Current BCS 6.0 do not IPI_enhancement ( Profit

Elimination )• Parallel execution of consolidation unit based

task• Current System do not have multiple versions to

support IFRS Consolidation and Local country consolidation

• Too many spreadsheets and systems involved in the S&OP process

• Too hard to simulate and compare planning scenarios

• Hyperion Planning• Manual Planning• Legacy tools and custom tools, • There is no real time comparison between AOP,

FCST vs Actual versions• Master data governance issues• No ERP direct integration

Transformation – F&A Innovations

• SAP Accelerated Finance & Controlling– Financial Accounting

• accelerated and enhanced reporting and analysis for Classic/new General Ledger and Special Ledger, Profit-Center and Asset Accounting

– Controlling• accelerated and enhanced reporting and monitoring for overhead

management information (cost centers / internal orders) and investment programs. Accelerated overhead and accrual calculation enables a faster period end closing in this area.

– Material Ledger• Material Ledger Period End Closing and provides an ERP based

drill down reporting for Material Ledger; Business Object tools like Analysis can directly access material ledger data through an Virtual Info Provider

– Production Cost Analysis• new insights into where the production costs are incurred and

what issues are affecting these costs. – Profitability Analysis

• Make faster, more profitable decisions with real-time access to large volumes of financial data in the profitability analysis (CO-PA) functionality of the SAP ERP application.

• The profitability analysis software and service package give you complete and immediate insight into cost and profit drivers across your enterprise.

• SAP HANA Live – some key analytics– SAP Working Capital Analytics, DSO Scope

• allows the customer to optimize their cash conversion cycle• flexible analysis paths that provides a new, intuitive and easy to use

way to analyze data.• Calculating based on data details allows for drilldown e.g. by

customer, product or payment terms– SAP Invoice and Goods Receipt Reconciliation

• The GR/IR Clearing Monitor is targeted to make the manual process of matching and correcting goods receipts and invoice receipts for financial accountants easier and more efficient– Currently unmatched open items require financial accountant to jump around

between 5 and more different transactions in the system in order to find the reason, why it was not cleared.

– The GR/IR Clearing Monitor provides all required information on ONE SINGLE screen. Additionally, it offers possibilities for collaboration by providing access to contact information for relevant involved parties in the resolution process and the opportunity to track the progress with notes and status information.

– SAP Supply Chain Info Center• New analytics for operational real time reporting based on APO data • Best practice analytical capabilities based on demand and supply

planning data that will be augmented with future versions of the application

– SAP Access Control Role Analytics– Scanning all roles SAP-wide for used transactions thus finding potential unused

and unsafe role and access across app view for access compliance, risk and internal controls

– Access role mining & enables root cause analysis

Deploy SAP RTR and OTCs like SAP Financials and HANA Live

Value and impact analysisDetermine technical feasibility & business and IT value

Interactive workshop approach:Session 1: Innovation area discovery

pain points and improvement potential

Session 2: Business process analysis feasibility and re-engineering benefits

Session 3: Transition and deployment scenario

deployment alternatives and migration path Session 4: Commercial aspects

Assess the impact the implementation of SAP S/4HANA has on a customer’s environment and the ability of a S/4HANA solution to meet customer requirements.

Cio forum s4hana

Technology

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