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helloKoosh PandayDemystifying SAP S/4HANA: a Sidecar story

Sappi

Demystifying SAP S/4HANA: a Sidecar story

So, I’m going to share my story with you, my friends.

I work for Sappi, and:

• we grow trees in plantations,

• and our wood is used to manufacture things that you are very familiar with …• pulp,

• paper,

• clothing,

• house A-frames and

• within the sawmilling industry, wood is also used to construct cabinets …

:

Demystifying SAP S/4HANA: a Sidecar story

So, anybody got a story to match …

aboutKoosh Panday• Koosh is employed by Sappi and collectively has more than30 years industrial multinational manufacturing experience inthe textile and clothing pipeline and in the forestry, pulp andpaper value chain functionally across production management,supply chain management and Information Management in theApplications Development arena.

• Am the Chair of AFSUG S/4HANA User group and haveworked across SAP 3.1h; 4.6c; ECC; S/4HANA; with APO; SCMand BW. Koosh has solid SAP user experience and deliveredmore than 40 integration projects in this space.

• @Home: am a daddy of two, and, at my wife’s beck and call, Ideliver dishwashing, cooking and cleaning projects, andwhatever else I’m instructed to do! No questions asked, off-course!

• Koosh holds a MBA and multiple supporting certifications.

Menu: sharing the tantalising 3-course … (25 graphics; 50 minutes between us and the next item on the agenda)

About Sappi

Sharing S/4HANA collateral

Sappi S/4HANA journey including Sappi’s sidecar technical journey

Question’s

Sappi’s SAP Journey

Sappi shifted to S/4HANA in 2018!

Sappi deployed brownfield implementations from R/3 to ECC8 to SAP Business SuiteS/4HANA, implying lots of custom developments along this journey.

Everything looked good on paper until we tested our EHS functionality.

We soon realized that key OH and IH functionality was absent.

So, in a hurry, we needed to launch a parallel project and deploy a sidecar.

This, is our Sappi story.

Successful I hear you ask? As Wallace and Gromit would say :

• “It was a Grand day Out”!

Sappi

• Our Sappi in 3 snapshots

Who is Sappi?

Who are we?

Corporate collateral:

Sappi South Africa

Corporate collateral:

Sappi Value metrics

SAP S/4HANA

Join the S/4HANA

Movement:What’s your

status?

Journey to SAP S/4HANAdo I stay with my ERP or shift? And which options do I utilise?

Your benefits

New implementation of industry-leading Processes

Reengineering and process simplification accelerated by SAP Activate and SAP Model Company (reference solution)

Legacy

SAP Business

Suite

New Implementation

Landscape Transformation

SAP Business

Suite

SAP Business

Suite

Your benefits

Stay with current business processes and move gradually to S/4HANA innovations

Harmonized business processes and shared master data through consolidation

Carve out of single entities of the company to SAP S/4HANA and leverage process simplification

System Conversion

SAP Business

Suite

Your benefits

Migration without reimplementation

No disruption for existing business processes

Re-evaluation of customization and existing process flows

Transformation over time

Business Case ingredients• You have lots of questions:

• What is the recipe for a succesful shift?• Why should I move to SAP S/4HANA?• What’s the benefit to my business?• Will I get new functionality and improved innovation?• Do I need to harmonize my business processes. Does this involve another round of Change Management?• What does HANA Optimization mean and how will Fiori-like Apps improve my efficiency?

• Here is the starting point:• Buy-in from the executive is key, to include a lead member as sponsor.• Identify what could break at the early stage of your project planning.

• Your customized transactions will be impacted, and so too certain standard transactions.• Look at the integral elements of your overall solution.

• Take an architectural view.• We at Sappi, have more than 40 core integration applications.

• You cannot test enough, and when you’ve tested, test again.• Deploy testing tools if you will, but the business knows best.

• Aim to simplify, be guided by your business processes, but reduce the transactions not used.

Business benefits: Digital Transformation: the Intelligent Enterprise

The business benefits that will be recorded in the business case for deploying SAPS/4HANA (Business suite on HANA) are:

1. Delivers flexibility by reducing rigid data structures.

2. Speed: reduced batch jobs implies information is available faster and in real-time.

3. Common platform using SAP HANA database for SAP S/4HANA, BW BusinessWarehouse, SAP S/4HANA Finance Management.

i. Base platform for the delivering the Intelligent Enterprise.

4. Landscape simplification: Enables smoother operational reporting, removal ofaggregate tables.

5. HANA Live: Virtual Data Model offers a new world of information analysis,including operational reporting merged with transaction data.

6. UI/UX: Introducing SAP Fiori and HTML5 into your business brings the SAPinterface into the digital age.

7. Cloud approach: SAP S/4HANA Cloud affords a pay-as-you-go model whichdrives cost efficiency in comparison with how you use on premise tools today,and reduces the infrastructure footprint.

Tech-ed!: SAP Readiness Check

Custom Code Analysis, courtesy Deloitte 2017

• HANA db,• Unicode conversion,• Converting SAP ABAP Batch Data

Communication BDC’s and BAPI’s,• Outputs,• Long text,• Material text,• LSMW,• Authorizations,• Technical Testing,• Functional Testing,• And Deploying a Sidecar, means

additional technical features.

Technical analysis• S/4HANA combines the data structures of different components (for FI, AA, CO, CO-PA and ML) into a single line item

table ACDOCA, called as Universal journal.

• It eliminates several aggregate and index tables. Now, data needs to be inserted only a single table instead of several

tables thus reducing the data foot print drastically.

• In ECC, FI GL accounts are mapped to CO primary cost elements.

• In S/4HANA, only one field of universal journal is used to store both GL account and cost element. Cost elements (both

primary and secondary) are now GL accounts and hence created / maintained (in FS00) with relevant Cost element

category.

• There several new transactions replacing the old transactions, however, the old codes are still valid.

• Reconciliation (as in case of CO to FI) is not needed now.

• Period end closing also will be faster.

• All customer and vendor master need to integrated / migrated as Business partner.• ECC’s FI-AR-CR is replaced by credit management of FSCM (Financial supply chain management). FSCM-CR is based on a distributed

architecture which allows interfaces with external credit rating agencies. Traditional FI-AR-CR credit control setting requires high degree ofmanual work. However, FSCM-CR has advanced features like

Credit rule engine for automatic risk scoring & credit limit calculations

Automatic update to master data on approval of credit limit etc.

Work flow for credit events etc.

• S/4HANA can only be run on HANA database unlike ECC which can be run on Oracle, IBM DB2 etc. In-memory database means

that data is read from memory i.e. data always reside in main memory RAM (though Write happens in hard disk) and hence in-memory database reads data much faster w.r.t traditionaldatabases (fetching the data from hard disk)

Deploying the Sappi Sidecarputting things in perspective

Readiness Check Simplification List 1709

Launched S/4HANA Project >12 month Schedule: 4 Test environments

Nov Dec Jan … Jul Aug Sep Oct Nov

Preparation

1st SHX conv.

2nd SHX conv.

Custom Code SHD

Custom Code SHX

Simplifications(CCS, SSP, …)

Development conv.

Test conv.

Production conv.

Project Impact and Risk profile

Outdated Transactions and business processes

• MIGO instead of MBxx• MExxN instead of Mexx• LSMW changes• FS10h instead of FS10n• OH on depreciation list,

not in S/4HANA• IH delivered with

S/4HANA 1511(simplified Fiori)

• MoC planned for 1809• Notice the release

numbers:On premise: 1503 (F); 1511;1605;(F) 1610; 1809; 1909; 2009Cloud:1603; 1605; 1605; 1611;1702; 1705; 1708; 1711; 1802;1805; 1808; 1811; 1902

Developing the Sidecar:Occupational Health and Industrial Hygiene and Safety: HIS

Options for Sappi

1. Transfer of SAP EH&S modules IncidentManagement, Risk Assessment andOccupational Health manually to SAPPIs HRSystem

2. Copy full system (system copy) to a new(temporary) sidecar and configure adjustmentsand integration scenarios (proposed option)

3. Convert old EH&S solutions to new EHSsolutions on S/4HANA during ECC conversionproject (update: not possible due to timeconstraints (November 2018 goLive).

EH&S (IHS, OH)

HCM

EH&S (IHS, OH)

HCM

EH&S (IHS, OH)

ALE distributionof HCM data

Enter: Technical detail started by identifying business processes

• SAP SHEQ: EHS and QM as a module of SAP ERP

• Quality Management (QM):

• Notifications; Tasks; Certificates; Manage Corrective Preventive Actions

• Environment, Health and Safety (EHS)

• Industrial Hygiene and Safety (IHS): Deviation / Suggestion Management: Incident / Accident

• Occupational Health: Injury / Illness; Medical Service

• Central Functions

• Management of Change (MoC): General Notifications

• Comment:

• Task driven,

• Workflow driven.

• Integration to internal functions: HR, RTP, SOTC, PM and external systems.

Enter the technical detailProject delivery plan started with a role review: TCode

Business Overview• People:

• 1390 SAP users access to SHEQ

• 214 Unique SAP users lose tools to utilise S/4HANA EHS IHS business process

• Tools:

• 110 SHEQ transactions

• 70 QM and MoC transactions available

• 40 Safety Incidents and Medical Services transactions no longer available

• EHS-IHS: Industrial Hygiene and Safety: 15 Tables

• What happens to historical data and Medical documents in archive?

• Processes:

• 14 typical business process SHEQ scenarios

• 8 IHS not available in S/4HANA

Business and Technical OverviewKey variables impacted

Business processes 14

Reports 16

Interfaces, ALE, integration elements 8

Dialogue Programs 16

Enhancements 74

Layout sets 4

ABAP queries 7

Background jobs 8

Master Data 22

Workflow scenarios 17

EHS Implementation Transfer GuideList Related Object(s) / Transfer Type

1 EH&S and Integration Customizing T

2 Related Number Range Objects and Intervals T

3 Business Partners A

4 Classes and Characteristic Definitions (Customer Classes and Char.)

T/M

5 Phrases E/T

6 Specifications E

7 SAPSCRIPT Long texts T

8 DMS Documents A

9 Classification Master Data OH Master Data T

10 OH Master Data and IH (Incident) Master Data T

Transport, Issue List, Cutover DaysKey variables

Transport List 57

Issue List 12

Cutover Days 5

Post-cutover days 15

Total timeline: Feb to Oct 9 months gestation period

Queries and Quibbles!• Commercial growth for SAP: Yes / No?

• Database reduction SAP HANA “In”, Oracle, DB2 and others “Out”

• Licences: e.g. for Cloud• Simplification?

• In summary:• Define Your Strategy• Establish Success Measures• Select the Best Digital Tools: Cloud, on-premise or hybrid• Build Your Plan• Drive Implementation• Use Best Practices / phone a friend (11%)• Enable Change• Secure Stability and Resiliency• Optimize Performance• Innovate for the Future: ask the tough questions

Ladies and Gentlemen, I’m Koosh Panday

and Ithankyou

credit to information providers courtesy of SAP, Sappi, Deloitte and Google

contactdetailsName : Koosh Panday

Company : Sappi

Email : koosh.panday@sappi.com

Contact # : 083 235 2932

Website : www.sappi.com

linkedin.com/in/koosh-panday-14144312