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SAP HANA, S/4 HANASimplification and Flexibility

CIO ForumJune2016 Ajay Kumar Uppal

Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

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What is S/4HANA?SAP Business Suite 4 SAP HANA or SAP S/4HANA is:SAPs next generation Business Suitea completely new product (new data model / new code line) and not the successor of SAP ERPfully built on the most advanced in-memory platform - SAP HANAis designed with the most modern user experience (UX) - SAP FioriS/4HANA is the license perspective form the application perspective we are talking about:HANA ApplianceSAP ERP powered by SAP HANASimple Finance Add-On

Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

2With the SAP Simple Finance add-on 1.0 for SAP Business Suite powered by SAP HANA a transition to the following applications is mandatory:powered by SAP HANA: classic Cash Management is replaced by the new SAP Cash Management powered by SAP HANASAP Cash New General Ledger: classic General Ledger is mostly automatically transformed into a basic implementation of New General LedgerNew Asset Accounting: classic Asset Accounting is mostly automatically transformed into the New Asset AccountingNew SAP Cash Management powered by SAP HANA requires a separate license.Refer to SAP Note 2044295 for more information.IBP for Finance unlike the SAP BPC standard model is not an add-on!

SAPs HANA Innovation OverviewArchitecture illustrations & HANA offerings in the area of ERPHANA platform (data mart)HANAapps for Suite HANA acceleratorsCloudon HANABWon HANABusiness Oneon HANABusiness Suiteon HANAS/4HANASide-by-side scenariosIntegrated scenariosNew frontiersHANA RDSSAP HANA DBCustom data mart/ any appBOBJ BIVisual IntelligenceText & predictive analysisLiquidity Risk ManagementOperational Process IntelligenceCO-PA AcceleratorFinance and Controlling AcceleratorBusiness Intelligence on demandSales & operations planningBW powered by HANABusiness planning & consolidation on HANABusiness One on HANASAP Business One Analytics on HANAHANA new analyticsBusiness Suite on HANAHANA new analyticsSimple FinanceSimple LogisticsSimple xxx

SAP BOBJ BI, VISAP Business Suite & any appData martAny DBHANA DBSAP Business Suite AppsAny DBHANA DBClientSAP Business SuiteAny DBHANA DBSAP Business Suite BWAny DBHANA DBSAP Business SuiteHANA DBERPCRMSCMSRMPLMVDLBWAppsHANA DBAny DBClientOD/SF solutions

HANA DBS InnovationsSAP Business OneHANA DBMS SQLArchitectureHANA offeringsTimeline

Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

3VDL = HANA Virtual Data layer -> HANA Live

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 doesnt 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 ledgersNo standard way to achieve balanced segment reporting for SEC/IFRS Cross Region and Country Business processes are not integrated due to Classic General ledgerManual Master Data maintenance and manual governance processIntercompany ReconciliationsForeign currency revaluations during the Month end close cycleComplex Procure to pay cycle ( Account payables) and out going payment cycleIT 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 ReportingLong 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

Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

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ProcessProcess ContdData & ApplicationsCountry specific Legal Reporting due to lack Parallel Ledgers and New General ledger functionalitiesReconciliations 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 CodeManual reconciliation across systems There is no direct Supply chain Process integration with ERP Financials, CO-PA and CO-PCLack of Transfer price set up and deferred tax calculationsManagement Reporting and decision making there is no real time management reporting analysis tool which is integrated with COPA and SAP FinancialsProduct Hierarchy- Current Management Reporting at Brand and Size level, there is no SBU, Category, Product Group and SKU level Management Profitability AnalysisComplex Workflow structure and approval process with in the Account Payables for 2 way match purchase order processCountry specific tax calculations and remittance issues ( Income Tax, VAT and Excise etc.)Perform COPA Reconciliation for FPLC and GMCLogistic, GMC, PPV and PSV Cost ReclassificationFIRM Forecast - Shipment forecasts for next fiscal issued to producing plants by GBU Category PlanningThe 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 ReportingThere is no direct Actuals + AOP+ Forecast Versions comparisons in the Planning CycleThere is no direct integration between Planning & Consolidation tools for ACT , PLAN version consolidationNo Real Time SG& A, Indirect SG&A and TPM related allocations in the profitability AnalysisDataRedundant master data / inconsistent data between supply chain and financials systemsApplications Unused custom objects : Programs, transactions, forms, queriesHighly customized Cash pool applications and Bank communication management for vendor paymentsLimitations 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, queriesMultiple Treasury legacy applications Treasury and Risk Management across regions ( 20+ applications)Multiple Financial Accounting related legacy applications and their integration with SAP

Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

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SAP Simple Finance (sFIN) Moving toward a Real Time Finance organizationSingle Source of TruthCentral 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 solutionsNew 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 levelNext gen user experienceNew role based user interfaces with embedded real time analytics and mobile access for business users

Real Time FinanceIntegrated business planningFacilitate collaborative planning processes, linking departmental plans to a central planDynamic business planningProvide new user experience for driver based planning, simulations, and predictive forecastingSingle analytical solutionProvide single solution for planning, real time consolidation, profitability analysis, and reportingInsight and Foresight

Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

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The S/4HANA Promise: Simplification to increase Enterprise EfficiencyIts about simplicity!

System Landscape SimplificationData Model SimplificationUX ImprovementBusiness Process Simplification

Source: SAPData Model SimplificationSystem Landscape SimplificationBusiness Process SimplificationUX Improvement

Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

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HANA Value, Improvements and KPIs Supply Chain