hellostream 1Join the S/4HANA Movement

hello Neophitos AntoniadesEskom journey to perform S/4HANA migration in 35 Weeks

Eskom Holdings

Agenda Items

About Eskom – Video

SAP at Eskom

S4/HANA Journey

Background

Program Scope

Project Objectives & Duration

Project Cycles & Conversion steps

High-level Project Plan

Cutover weekend

Project Risks

Gaps

Improvements and next Steps

About Eskom: Video

Agenda Items

About Eskom – Video

SAP at Eskom

S4/HANA Journey

Background

Program Scope

Project Objectives & Duration

Project Cycles & Conversion steps

High-level Project Plan

Cutover weekend

Project Risks

Gaps

Improvements and next Steps

SAP at ESKOM

Modules in SAP ERP

Other SAP Solutions

SAP Landscape

Eskom | Current IT state and challenges

Complex SAP solution landscape with 29 production and 63 non-production environments.

More than 100 databases and 200 application servers.

High demand on Group IT to automate processes.

IT cost pressure │ Demand for analytics │Digital utility imperatives

ECC

SRM

BW CRM

APO

HR

23 other

Agenda Items

About Eskom – Video

SAP at Eskom

S4/HANA Journey

Background

Program Scope

Project Objectives & Duration

Project Cycles & Conversion steps

High-level Project Plan

Cutover weekend

Project Risks

Gaps

Improvements and next Steps

Why S/4HANA?

1. Innovation – SAP HANA Technology In line with our Digital Strategy.

2. Operational Sustainability – SAP HANA only supported platform in the

SAP Roadmap.

3. Financial Sustainability – Beneficial for Eskom to migrate at current

prices.

4. Improved reporting – Real-time, incl. flexible reporting based on line

items.

5. Speed & Agility – Faster Access to data.

6. Modern user experience with FIORI.

7. Technical Benefits – Performance improvement | less storage cost |

simplified SAP landscape.

SAP HANA Project Scope

The two SAP HANA options:

1. S/4 HANA

Migration and Conversion to S4HANA and certain functionality changes.

2. Suite on Hana (SoH)

Technical migration to HANA and NO new functionality during the project

implementation and remain on ECC6 EHP7.

Scope Baseline | Conversion to S/4HANA

1. SAP ERP - Enterprise Resource Program (PFS).

2. Technical migration done on the other SAP systems to SoH and remained on ECC6 (HR, Insurance, GRC, SolMan, etc.).

3. SAP SRM* - Supplier Relationship Management (PSR).

4. SAP MDG - Master Data Governance.

5. SAP BPC - Business Planning & Consolidation.

6. S/4HANA Cash Management (new implementation).

7. S/4HANA New Asset Accounting.

8. Commercial Sourcing and Collaboration (ARIBA)**.

9. Limited SAP FIORI Applications applications (pre-requisite).

SAP SRM* - An investigation is required to migrate data from SRM to S/4 SRM using SLO. If data migration is not possible, a display only solution

will be required.

Ariba ** – Not implemented because of marketplace restrictions.

Project Objectives: S/4HANA

Eskom planned the migration of their central ERP system to S/4HANA.

Source: ECC6 (EHP7), Oracle - 7TB (uncompressed), Memory 80 GB.

Target: S/4HANA 1610 (FSP2), HANA - 5 TB, Memory 4 TB.

Modules: FI, FI-AA, FI-CO, MM, PM, PS, PP, SD, Travel Management.

S/4HANA Migration Project duration

Pre-project:

SAP Value Assurance Planning Services (ISR, VIS, MPW, MPS, PED, TAI & BDS).

CVI Strategy / conversion approach.

Project Start: 10 April 2017:

Go-Live: 12 December 2017 - [8 month duration] S/4HANA 1610.

Project End: 12 January 2018 - [4 weeks post Go-Live support] .

Eskom’s late scope changes:

In Aug ‘17: Eskom moved up the planned Go-Live date from Feb 2018 to Dec 12th, 2017.

Reason: too close to year end closing activities in Feb 2018.

SAP S/4HANA Conversion CyclesCycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6

Test Upgrade and

Migration /

Conversion Steps

Create an Upgrade

/ Migration

Cookbook

Functional testing

Basic system

validation

Define the

technical Downtime

Soft freeze - Delta

Code Adjustment

Testing

Environment

Sanity Checks

Unit tests

Transport Queue

testing

System

adjustments

Enhance Cookbook

Testing

Environment:

Full Functional

test

Full Role test

Full integration

test

UAT test

Volume test script

preparation

New HANA

Production H/W

Final functional

adjustments

Soft Freeze period

starts

Define/Verify

business downtime

Testing

Environment:

Load test

Infrastructure / HA

Prod Test

Conversion

Hard Freeze period

starts

Cutover Rehearsal

Verify business

downtime

Production

*Conversion (Refer

next slide)

Interim Hardware Interim Hardware Interim Hardware Prod. Hardware Prod. Hardware Prod. Hardware

Sandpit Development Quality Assurance Mock Rehearsal Dress RehearsalProduction

Go-Live

Conversion Steps

High-level Project Plan

S/4 ScheduleQu

ality

Sys

tem

Dres

s Re

h.Mo

ck C

utov

erSa

ndbo

xGo

-Li

veDe

v Sys

tem

2017 2018

Activity May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Prepare conversion

Convert to S/4HANA with DMO

Post activities – Technical

Cookbook creation

Post App Work & Functional testing

Cash Management Configuration

Data clean-up

Prepare conversion

Convert to S/4HANA with DMO

Post activities

Custom code adjustments

Unit testing

Data clean-up

Prepare conversion

Convert to S/4HANA with DMO

Post activities - Technical

Integration/Regression Testing

User Acceptance Testing

Data clean-up

Convert to S/4HANA with DMO

Post activities – Technical

Performance & Infrastructure Test

Convert to S/4HANA with DMO

Cutover plan and cookbook

Convert to S/4HANA with DMO

Delayed

√

Go-Live

Stabilisation

Training

Complete

11 Dec

√√

√

√

√

Organisational Change Management

√

Not on critical path

√

√

√

√

√

√

√√

√

√ indicates complete

Mid Oct 2017 snapshot.

√

√

Cutover Weekend

Cut over Weekend Time Lines

Lock out users

13:00 End users

17:30 Month end users

BCP Loads / BW extractors

One hour

Technical Migration

SUM run for 30 Hours

Transports

4 Hours Pre

1 Hour Post

Financial Migration

31 hours

Business Validation

6,5 hours

Go-Live

13:00

Friday

17:30

Friday

18:30

Friday

00:30

Sunday

11:30

Monday

17:30

Monday

Month end processes

Reference Client

Recon Report

Financial Reporting

Rollback6 Hrs

23:30

Go / No-Go decision

GAPS between ECC6 and S/4HANA (1610)

Eskom Gaps

Pre Readiness report:

MRP can only run on MRP Areas and not S_LOC.

CVI (BP) – All vendors/customers must be created as a BP prior S/4 going live.

CVI (BO) – All employee vendors/customers must be created as a BP prior S/4 going live.

RWD needed to be uninstall as it was not compatible with S/4HANA.

RIB needed to be uninstall as it was not compatible with S/4HANA.

QIM needed to be uninstall as it was not compatible with S/4HANA.

Eskom Gaps | Finance

Conversion checks revealed inconsistencies found between some tables e.g. COSS vs COSP (S/4HANA has more

validation checks).

SAP optimisation notes (slow response times on IDC, Asset Recalc & Report drill down reports).

New Asset Accounting, impact how the system creates a document for each accounting principle in the general

ledger.

Classic Cash Management -> New Cash Management (Fiori expectations).

Some secondary cost elements not created as GL accounts (SAP Note 2389136).

SAP standard tables not displaying address data of user ID’s on workflow items after the S4 implementation (OSS:

logged).

Eskom Gaps | Material Management

Conversion checks revealed inconsistencies found between some tables e.g. MARA & MCHBH.

Material number field length on S/4 is 40 characters, Eskom decided to stick to the current 18 Characters, that

causes some Idoc’s to fail on PM.

Stock requirements list (MD04) run on Plant /MRP areas (previously Sloc) that need to be individually selected to

reflects replenishment requirements. No bulk list exists for MRP area (Sloc) customised program created.

New fields on MIRO “NF”, ME21N, ME53N & ME23N transaction screens.

Eskom Gaps | Supplier Master Data

MDM CREMAS OSS incidents logged:

Central deletion and posting block not updating Business Partner (BP) via CREMAS.

Vendor service level field not visible on BP.

Errors with postings CREMAS Idoc’s to update BP.

Errors on CREMAS Idoc’s when creating vendors as external on BP.

Some CREMAS Idoc’s reflect “GREEN” icon, but BP was not reflecting on the update.

Vat and tax number fields were switched around on the BP after the CVI conversion.

Eskom Gaps | Plant Maintenance

English translation

OSS note implemented to resolve translation issue on text fields.

Field length

Material number field was extended to 40 characters and caused most of the IDOC’s to fail (Floc, Equipment,

work order interfaces) - New data element (DE) was created “MATNR18”.

Material number field length also impacted on the “Construction type” that include the MAT NO. Use same DE.

Classification field was extended to 70 characters and a new DE was created to cater for existing 30

characters “ATWRT30”.

OSS logged as you cant edit Existing IDOC segment to correct material numbers.

IP30 - Maintenance Schedule Date Monitoring ran 200% - 20 000% slower.

Project(s) | Key RisksNo. Risk Mitigation

1Projects moved forward by 9 months: Original go-live

August 2018 moved to December 2017

Executive Support, Business involvement, Motivated Team and strategic

partnership with the OEM (e.g. MaxAttention)

2 SAP HEC Strategy changeLeverage on other strategic partnership to source on premise HANA certified

hardware within a short period

3 Limited local skills for S/4 HANAEnsure SAP HANA training and certifications of internal teams ahead of time.

Training vouchers incl. SAP EA

4 Retention of highly skilled SAP resources within Eskom A retention strategy need to be put in place.

5Reimplementation of certain modules (e.g. cash

management & engineering extensions)Ensure appointed third party consultants have the necessary skill set

6 Complex Eskom solution Ensure proper testing are done and all defects are resolved before going life.

7 End user appetite for change Appoint skilled change management team

Post S/4HANA:Improvements / Next steps

Post SAP Systems on HANA

Databases (30)

Tenants (97)Total

Database Size (34Tb)

SAP Systems (101)

SAP Versions

( NW 7.4 / 7.5 / ECC6 / S4HANA /

BW4HANA )

Response Times Improvements

Optimised Custom Code Reports Response Times Improvements

Technical performance optimization of the Top 45 frequently used Z-reports

BPMoN automatic alerts

Implement Embedded Analytics | Fiori applications

Leverage embedded analytics within Finance, Purchasing and Plant Maintenance functionality.

Manage critical targets by using FIORI KPI design.

Eliminate extract of S/4HANA data to BW.

Lower solution support costs.

Decision-

making cycle

opportunities

Activate Fiori Applications

Improve

productivity

and usability

FROM TO HOW

Manual interventions of

approvals / management

reviews due to lack of

mobile device support

Increased customer

satisfaction with multi-form

factor approval and

notification support

Wave 1 deployment of 18

FIORI apps across Finance,

CRM, GRC, HR and IT SM.

18 of 49 FIORI

apps identified for

employment

FI EA CRM GOV HR ITSM MM PM Travel Total

Wave 1 6 3 1 1 2 3 2 18

Wave 2+ 13 6 1 17 - 2 24 3 66

Potential 359

Wave 1 deploys 18 FIORI apps in March 2019

Some FIORI deployments

Where to next

contactdetailsName : Neophitos Antoniades

Company : Eskom

Email : antonins@eskom.co.za

Contact # : +2782 781 0708

Website : www.eskom.co.za

thankyou