Neues in SAP S/4HANA · SAP S/4HANA’s code line, simplified data model, ... Demand Driven MRP...

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PUBLIC Live Business. Starten Sie jetzt. Digitalisierung gezielt umsetzen Uwe Grigoleit, SAP 16. November, 2017 Neues in SAP S/4HANA

Transcript of Neues in SAP S/4HANA · SAP S/4HANA’s code line, simplified data model, ... Demand Driven MRP...

Page 1: Neues in SAP S/4HANA · SAP S/4HANA’s code line, simplified data model, ... Demand Driven MRP Variant Config. & Simulation One Single Invoice Engineering change impact analysis

PUBLIC

Live Business. Starten Sie jetzt.

Digitalisierung gezielt umsetzen

Uwe Grigoleit, SAP

16. November, 2017

Neues in SAP S/4HANA

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Introduction

What is new with SAP S/4HANA 1709 (on premise)

The Journey to SAP S/4HANA –Migration Tools, License and contract consolidation

Agenda

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SAP S/4HANA – The Momentum Continues

Adoption across ALL Industries

Adoption across ALL Industries

2'800+Active Customer Projects

6’900+Licensed Customer Scenarios

1050+Live Customers

as of August 2016

Largest growth in the Cloud - >500%

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SAP S/4HANA – the ONLY ERP offered consistently in all environmentsComplete, Consistent Choice

On PremiseCloud

SAP S/4HANA

One Code Line

SAP S/4HANA’s code line, simplified data model, and modern user experience are consistent for both cloud and on premise. Designed for in-memory, SAP S/4HANA brings new business capability while simplifying the IT landscape.

Considerations for selecting the right SAP S/4HANA solution:

▪ Business functionality

▪ Regulatory, industry, and regional requirements

▪ Individualization options

▪ IT Strategy

▪ Innovation cycles

▪ Adoption/upgrade efforts

▪ TCO

▪ Commercial models

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The right solution for each customer situation

Cloud ERP

SAP S/4HANA Cloud

SaaS solution

▪ Configurable standardized processes and best practices for finance, procurement, HR, and sales

▪ In-depth support for professional services and component manufacturing; more industries on road map

▪ Extensibility with PaaS

▪ Public cloud infrastructure

▪ Quarterly release cycle

▪ Lowest TCO

▪ Fastest time to value

▪ Subscription licensing

SAP S/4HANA Cloud, private editions

Private cloud

▪ All private editions run onSAP HANA Enterprise Cloud

▪ Customizable packages and bundles

▪ All industries supported

▪ Extensibility with PaaS

▪ SAP-managed services on private cloud infrastructure (SAP, AWS, Microsoft Azure, or Google Cloud Platform)

▪ Annual release cycle, speed of adoption depending on configuration

▪ Low deployment/maintenance/upgrade efforts vs on-premise ERP

▪ Subscription licensing

SAP S/4HANA

On-premise capabilitiesmanaged by customers

▪ On-premise functional scope

▪ All industries supported

▪ Customize, modify, and extend

▪ Customer infrastructure or IaaS

▪ Annual release cycle, speed of adoption depending on configuration and custom modifications

▪ Best-in-class deployment/upgrade efforts for on-premise ERP

▪ Perpetual licensing

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What is new in SAP S/4HANA 1709

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Supporting Cross Industry in Core SAP Leonardo / IoT Integration to Cloud

Simplified Architecture

Built to ScaleFor high automation Scalable live business

Built for PeoplePeople centric accessFree text search Any device

Built for GrowthProviding In-memory Integration base for future innovation consumption

Smart Master Data

Reporting speed up to 1000x

Inventory Throughput up to 30

MRP Run up to 10 x

VC algorithm significantly faster

Embedded Transportation, CPM, PPM

Central Requisitioning

New Legal Content Management

New Migration Cockpit

Demand Driven MRP

Variant Config. & Simulation

One Single Invoice

Engineering change impact analysis

Co Pilot 1

Flexible Approval / Resp. Mgmt.

Report & Repair Malfunction Cockpit

ML: SAP Cash App

Predictive Contract Analysis

Geographical Enablement

Automotive Vehicle SearchCommodity ManagementFashion (Seasonality & Segments)Banking – Loans IntegrationCatch Weight Mgmt.Agricultural Contract Mgmt.

Product Master (synced Material, Article)

Hierarchies based on Semantic Tags

Engineering Control Center

Recipe finder

Scalable Performance

New Role based KPI’s

New Overview Pages(Sales, Quality, Procurement…)

New Insight-2-Action Cockpits(QM, Engineering, Sales, DDMRP, FCC…)

So what is the business value in S/4HANA 1709?

Smart BusinessKPI driven Business Collaboration inside

Digital Payments

Integrated Business Planning

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The evolution of SAP S/4HANA with full speed ahead

HANA

SAP S/4HANA 1610

BPU-GL ML

PPDSEWM aATP

CDS views

API

CRM SCM SRM

Add-Ons

HANA

SAP S/4HANA 1709

BPU-GL ML

PPDSEWM aATP

SER 1

TM

FCCPPMCPM

CRM1 SCM

cPUR.

APIAdd-Ons

CDS views

1 Planned scope 1709FPS01

HANA

SAP S/4HANA 1511

BPU-GL ML

Add-Ons

CDS views

API

CRM SCM SRM

HANA

ERP

SAP S/4HANA Finance 1503

Add-Ons

U-GL

HANA LIVE

CRM SCM SRM BI* BI*

*BI for operational reporting

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SAP CoPilot with SAP S/4HANA 1709*

SAP CoPilot with SAP S/4HANA is the first step towards a unique, digital assistant for

the enterprise, helping users get their work done more efficiently.

This version is aware of your business context, helps you efficiently collaborate on

business matters and quickly create business objects via embedded QuickCreate UI’s

Value Proposition Users can get their work done more efficiently.

Efficient issue resolution and follow-ups: users can collect notes, screen shots and

business objects for later reference; they can chat and share them easily.

Users can work faster by taking actions from their current business context – e.g.

looking at a supplier issue and immediately creating a procurement activity.

Capabilities Notes and Screenshots: Users can create notes in the business context and capture

screenshots from apps, navigate to the app from the screen-shot.

Recognizing Business Objects: SAP CoPilot recognizes business objects within the

current application context as well as those referred to in notes or chats.

In-Context Chat: Chat with other users from your business application context without

entering a collaboration room, sharing notes, screenshots and business objects. Save

the collection of chats, notes etc. for later use.

Quick Actions: Quickly create business objects via embedded QuickCreate UIs; fields

are pre-filled from SAP CoPilot context.

* This is the current state of planning and may be changed by SAP at any time without notice.

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Core Finance

▪ Enhanced Fiori UX for Accounts Payable/Receivable Accountant; Accounts Receivable

Manager; Controller (Production Costs, Credit); Asset Accountant; General Ledger

Accountant; Inventory Accountant.

▪ Business Reporting: Cash Flow Statement with Semantic Tagging

▪ Universal Journal: Subsequent implementation of G/L document splitting

Accounting & Financial Close

▪ SAP Financial Closing Cockpit technically part of SAP S/4HANA 1709 & new Fiori UX

Financial Operations / Receivables Mgmt.

▪ Machine Learning for Cash Application - Invoice Matching clear incoming payments by

matching them with the corresponding receivables

▪ Seller-side integration with Ariba Network (invoice and discount management); Cost center

(SuccessFactors); Payment advice (Fieldglass); Ariba Pay/ Supply Chain Finance

Financial Planning & Consolidation

▪ Financial Planning: Basic Sales Planning (Activity Price, Consumption)

▪ Real-Time Consolidation: Intercompany transaction elimination; Validation at Source for Consolidation.

Treasury & Cash Management

▪ Treasury and Risk Management: Foreign Currency Hedge Management and Accounting; Integration of SD into Trade Finance (IFRS)

▪ Cash Management: Bank relationship management including bank fee analysis; Improved Integration with Bank Communication Management and In-House Cash

Central Finance

▪ Shared Services in Accounts Payables/Receivables

▪ Central reversal and correction capabilities

SAP S/4HANA FinanceDelta Scope for 1709 Shipment

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Benefits

Faster Entity Close through

improved closing efficiency

Governance and Compliance

Transparency and Insight

Capabilities

Automated closing tasks, even in remote

systems and powerful, user-friendly

application for manual tasks

Collaboration, notifications, and workflows

Define a global game plan for the entity close;

leverage it for multiple org units and closing

cycles

Audit trail, logging, documentation

Real-time insight into the closing status

Monitoring by subsidiaries and headquarter

Close Analysis

▪ Now Part of SAP S/4HANA Core

▪ Fiori-Renovation

▪ Future Direction: further automation

SAP Financial Closing cockpit

SAP Accounting & Closing: Universal Journal

Accounting Compliance Entity Close Intercompany Consolidation Disclosure

SAP S/4HANA FinanceExtended LoB Scope for 1709 Shipment

Accounting & Financial

Close*

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SAP S/4HANA FinanceAdditional LoB Scope for 1709 Shipment

“SAP Cash Application”**

Lump sumMissing info

Discounts Exchange

Call

?

Payments

SAP Cash Application intelligently learns matching criteria from your

history and automatically clears payments. SAP LeonardoMachine Learning

Open bank statement

items plus receivables

Matching proposals

Matches autocleared, proposals

viewed over SAP Fiori apps

Reprocess Bank Statement Items

Equivalent to FEBA / FEBAN

Training

process

Inference

and

Clearing

process

Run invoice-matching

service

Machine-learning

training

Historical clearing

documents

CloudOn premiseCloud

SAP Cash

ApplicationTraditional System of Record

Automatically select and arrange

decision criteria & values

Currently supporting 48 matching

criteria & growing

Proposals returned to

SAP S/4HANA

Proposals satisfying

confidence threshold are

automatically cleared

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SAP S/4HANA Sourcing & ProcurementExtended LoB Scope for 1709 Shipment

Technical

▪ Enables the requisitioning process to run on the

centralized hub system, with the follow-up

documents (e.g. purchase orders) being created

in the back-end systems

▪ Replication of source of supply from backend

systems as import to the central procurement

catalogue

▪ For 1709, only SAP ERP is supported as

compatible back-end systems

Benefits

▪ Leverage economy of scale by consolidating

purchase requisitions to a central procurement

function

▪ Transition path to SAP S/4HANA for Business

Suite (SRM) customers with procurement hub

deployment

▪ Enterprise-wide self-service procurement and

approvals with consumer-grade UX via Fiori apps

Background

▪ Significant number of customers (typically large

size) with SRM hub deployment connected to

multiple backend systems use self-service

procurement

▪ These customers require smooth transitioning

from the Business Suite (SRM) to SAP S/4HANA

▪ Central requisitioning is the first to step towards

providing full procurement hub capabilities

Centralized Requisitioning*

SAP ERP SAP ERP SAP ERP

SAP SRM

SAP ERP SAP ERP

SAP S/4HANA

SAP ERP SAP ERP SAP S/4HANA

SAP S/4HANA

SAP S/4HANA

Centralized purchase requisitions through hub deployment of SAP S/4HANA

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SAP S/4HANA Manufacturing: Production Planning & SchedulingExtended LoB Scope for 1709 Shipment

Demand Driven MRP – Concept

▪ Background: “lot size of one”, requires a more

personalized and dynamic planning of replenishments.

▪ Goal is to manage buffers of components and semi-

finished products across the complete BoM dynamically.

▪ Prioritize existing demands sales orders over forecasts

(e.g. IBP) to lower overall stock levels and still ensure high

customer service levels at lowest possible inventory levels

across the complete BoM / value chain.

▪ DDMRP is fully embedded into existing MRP concept →

MRP type, safety/min safety stock, reorder point, max

stock…

DDMRP – How it works

▪ Provides full demand transparency and well-founded decision support and instant reaction and

resolution of issues, based on Lead time & consumption analytics (average, deviation, frequency,

usage)

▪ Re-classify and (Re-)Determine stock levels, (re-) position strategic stock …

▪ Replenish only for real demand (sales orders) and Introduce buffers at strategically important

points to dampen variability to shorten lead times to generate supply order

▪ Provide real-time prioritization of supply orders

▪ Feedback loops of actual data into model setup to continuously improve flow

▪ Reach better quality and smoothen production flow by prevention of defects

“Demand Driven MRP”*

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SAP S/4HANA Supply Chain for Transportation ManagementExtended LoB scope for 1709 Shipment

▪ Harmonized Master Data and Customizing

▪ Harmonized Transportation Scheduling

▪ Combined Inbound / Stock Transfer / Outbound Transportation Process

for Shippers

▪ Transportation Cockpit

▪ Order and Delivery Based Planning Process

▪ Vehicle Scheduling Routing Optimization

▪ Automated Carrier Selection

▪ Driver Management

▪ Load Consolidation

▪ Package Building

▪ Load Planning / Load Optimization

▪ Integration into Supply Chain Logistics, Financials, Yard Logistics (CD)

▪ Incorporated Tendering Management

▪ Carrier / Service Billing

▪ Dispute Management

▪ Transportation Collaboration Portal

▪ Embedded Core Data Service based Analytics

▪ Strategic Freight Management

▪ Event Management (use for Transportation Events)

SAP S/4HANA Supply Chain for Transportation Management provides best-of-breed transportation functionality

(based on SAP Transportation Management) within SAP S/4HANA:

Transportation

Management*

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SAP S/4HANA SalesScope highlights for 1709 Shipment

Sales Monitoring and Analytics

▪ Sales order delivery performance to monitor his

current situation, and instantly recognizes the effect of

delivered as requested ratio of sales orders, because a

critical delay of delivered goods endangers customer

satisfaction and retention in the future. Insight to action

- navigation via smart links.

▪ Analyze Backorders: Monitor sales confirmation

situation, and instantly recognizes the risk of

unconfirmed sales orders, because these endanger

future sales volume.

▪ New key performance indicators for sales contracts,

customer returns, outbound deliveries, and credit and

debit memo requests.

Claims, returns and refund management

▪ Simplify return processes with “Accelerated

Returns”

Billing and invoicing

▪ Converge external billing data, sales orders,

sales contracts, debit memo request, and

outbound deliveries into one invoice.

▪ Reduce the number of invoices needed when

processing billing due list items of different

categories and support Innovative omnichannel

approach.

▪ Enable electronic and digital payments with

payment hub integration in SAP S/4HANA

Order and Contract

Management

Sales order management and processing

▪ “My sales overview” overview page provides

internal sales representative with a central entry

point to all his important daily working tasks.

▪ Get insight to all sales orders’ status and take

immediate action along with the whole O2C

lifecycle with “Track Sales Order”.

▪ Enhanced Sales Order Fulfillment cockpit with

SOFM – Analyze and Resolve Issues

▪ Schedule the output of sales documents with the

new output management

SOFM – Analyze and Resolve Issues

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* Feature highlights for SAP S/4HANA 1610 FPS1 (Feature Pack Stack) - See Feature Scope Description of SAP S/4HANA 1610 FPS1 for full scope.

1610 FPS1 – Recent innovations* 2018 – Product direction**2017 – Planned innovations** 2019 – Product vision**

** This is the current state of planning and may be changed by SAP at any time without notice.

SAP S/4HANA RoadmapLoB: Sales; LoB: Service

Sales Order Processing

Enhancements to SAP Fiori apps for billing

clerks in SAP S/4HANA

Enhancements to SAP Fiori apps for internal

sales representatives in SAP S/4HANA

SAP Fiori apps for order-to-cash process

managers in SAP S/4HANA

“Service Core” based on CRM Add-on

Service Request & Order, Confirmation

Interaction Center

Pricing & Billing

Service Contract

Functional location and Equipment, Warranty

“Sales Core” based on CRM Add-on:

Lead & Opportunity Management

Activity, Tasks, Territory

Call lists

Integration to SAP S/4HANA Order

Management

Improved integration capabilities

Provisioning a comprehensive set of services

(whitelisted remote APIs) for the integration of

external third-party products and for customer

developments for sales and billing purposes

Sales Order Processing

Enablement of export control in SAP S/4HANA

Sales with international trade

Enablement of embedded transportation

management in SAP S/4HANA Sales

Reduced downtimes in sales for the transition

from SAP ERP (running on premise) to

SAP S/4HANA (running on premise)

Sales billing and invoicing in SAP S/4HANA:

new and enhanced SAP Fiori apps

Sales order processing in SAP S/4HANA:

new and enhanced SAP Fiori apps

Accelerated returns processing in SAP

S/4HANA: new SAP Fiori apps for customer

returns and orders without charge

“Sales and Service Core” based on CRM Add-

on:

Complaint and in-house repair

Warranty Claim Management

Service Contract and planned Service

Order and contract templates

Loyalty Management

Migration tools for SAP CRM installed base

Responding to technology trends

Machine learning and natural language

processing to support the sales and billing

department for a higher level of automated

processes and smarter analytics

– Order capture with machine learning

becomes more reliable as erroneous

situations can be predicted. In a best-case

scenario, obvious errors can be corrected

on the fly, and fields can be prepopulated

intelligently.

– Natural language processing enables users

to conduct simple actions in sales and

billing with voice commands. A voice

assistant can answer simple questions in

the context of work.

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SAP S/4HANA Technology: IoT Application Development ServicesExtended LoB Scope for 1709 Shipment

SAP Geographical Enablement Framework for SAP S/4HANA

▪ Foundation to enrich business data with geometric attributes

▪ Exposure of geometries and attributes of geo-enabled SAP business objects as REST-

based feature classes to be consumed using standard GIS map editing tools1

▪ Comprehensive customization that allows geo-enablement of any SAP business object

and feature, such as adjusting map UIs for different user groups and scenarios, configuring

application launching functionality from the map, and setting up external GIS connections

▪ Standalone web-based Geometry Explorer with streamlined, new UI design to view both

business data from geo-enabled SAP S/4HANA functions and data from Enterprise GIS

systems1 on the same map

▪ Standalone web-based Geometry Editor to search, view, and update geometry for any

geo-enabled SAP business object.

▪ Time-dependent geometries for geo-enabled SAP objects

▪ Mass actions, custom backend actions, reference layer actions and dialog action

parameters

▪ Measurement tools

▪ Navigation from and to an application with list of objects

▪ Combined spatial and attribute search for objects on the map

▪ Personalization (save locations and/or search variants)

▪ Temporary sketches and comments

▪ Import of shapefiles

▪ Other various improvements

IoT Application Development

Services**

Spatial

search

Time-dependent

geometries

Reference

layer from

external GIS

sources

1 Support for Esri ArcGIS as default

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SAP S/4HANA release strategyDefinition of deliveries and possible adoption paths

Maintenance Line

Maintenance Line

Maintenance

SAP S/4HANA 1511

SAP S/4HANA 1610

SAP S/4HANA 1709

SAP S/4HANA 1809

SAP Release Strategy

General availability (GA / RTC)

Innovation path

Alternative path (as an example)

SAP Guided Beta program

Maintstream Maintenance – Feature Packages (FPs)

Maintstream Maintenance – Support Packages (SPs)

SAP ERP System

possible transition paths

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The Journey to SAP S/4HANAMigration Tools, License and contract consolidation

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The SAP S/4HANA family and transition paths

SAP Business Suite(e.g. BS7i2013)

SAP S/4HANA family

New implementation only!

System Conversion

New Implementation

Landscape Transformation

SAP ERP System

(on AnyDB)

SAP ERP System

(on SAP HANA)

(On-Premise)

SAP S/4HANA

SAP S/4HANA Finance

1503, 1605

S/4HANA Cloud

or

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Customer-Specific Migration Contentcan be flexibly included

• Integration of customer-built objects• Customer-specific enhancements to SAP

standard objects (e.g. add new fields)

SAP S/4HANA Migration CockpitSpeeding time to value

Predefined SAP S/4HANA-specific Migration Contentfacilitates and accelerates your data migration

• Preconfigured content and mapping for available migration objects, e.g. customers

• Predefined templates for each object • Automated mapping between template and target

structure• Migration programs are generated automatically

The next-generation data migration software embedded in S/4

• Shorten data migration project duration by more than 20%• Highly simplified for SAP applications as data sources • Guided procedure takes users through the migration process: Easy and safe• No programming by the customer required• Flexible for integration of custom business data including data transformations• Included in S/4HANA license and shipment• Made for migrating data from SAP and non-SAP sources into SAP S/4HANA (on-premise) and

SAP S/4HANA Cloud

Select your required migration objects

Step-by-step guidance through the migration process

SAP S/4HANA Migration Cockpit migrates your business data quickly, safely and cost-effectively

Further information

o Standard overview presentationo Migration Cockpit in SAP Community

S/4HANA Migration Cockpit

Third-party system

S/4HANA

S/4HANA Cloud

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SAP S/4HANA system conversion

New SAP Readiness Check

Application

specific follow-up

activities

Application specific

follow-up activities

Database migration

Software update

Data conversion

Custom code preparation

Preparation phase Realization phase

System

requirements

Maintenance

plannerPre checks

Software Update

Manager (SUM)

Unicode

conversion

Custom code preparation

SAP Readiness Check

A holistic system analysis is the foundation for

further planning steps toward a successful and

smooth SAP S/4HANA system transition.

The SAP Readiness Check for SAP S/4HANA

summarizes the most important aspects of the

conversion in an easily consumable way.

S4H126

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SAP Readiness Check for SAP S/4HANA

Custom Code & Custom Dev

• Custom Code must be analyzed with respect

to SAP S/4HANA compliance, based on the

SAP simplification database

• SAP Readiness Check provides BOM of

affected objects as well as SAP Custom

Development Projects (CDP‘s)

• An in-depth custom code management

activities to follow during project execution

Simplification items

• Simplification Items represent application or

architecture changes in comparison to ERP

• About 470 Simplification Items exist for SAP

S/4HANA 1610

• They are grouped by business priority (e.g.

Core Finance) and industry, respectively

AddOn’s & Business Functions

• SAP AddOn’s and Business Functions as well

as 3rd party AddOn’s have to be checked for

their compatibility with SAP S/4HANA

• SAP software is listed and rated

• 3rd party software is listed only

S/4HANA Sizing

• To prepare for SAP S/4HANA, a system

sizing is the baseline for further discussions

regarding the future target size

• SAP Readiness Check summarizes the

technical sizing result so that customers can

further engage internally, with SAP or with

partners to discuss the future target system

size

Recommended Fiori Apps

• Fiori apps recommended based on the

transaction usage history in the evaluated

system

Transactions

• SAP GUI transactions replaced or

deprecated in SAP S/4HANA, such as

Classic MM-PUR GUI transactions

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2. Which SAP S/4HANA simplifications impact me when I want to convert my SAP ERP 6.0 system to SAP S/4HANA?

1. How is my custom code impacted when I want to convert my SAP ERP 6.0 system to SAP S/4HANA?

SAP Readiness Check for SAP S/4HANATwo examples of the detailed output – accessible via the dashboard

SAP Help Portal: SAP Readiness Check and SAP note 2290622

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Tomorrow8 AcceleratorsToday

Customer Feedback:

Please give me guidance, not choices, I need my roadmap to S/4HANA

1a. Transformation Case – Value

1b. Transformation Case – Effort

2. Baseline & Tracking of Progress

3. Alignment IT-Business

Especially Functional Coverage

4. Digital Innovations Acceleration

5. Scoping the Digital Core

6. Conversion vs. Greenfield Approach

7. Starting Point Determination/ Migration Path

8. Readiness to Start/ Preparation Check

??

??

9INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The 4-Level approach for value of transformation

Customer decide on the level of engagement. SAP provides professional offerings on each level. The 4 levels are based

on each other.

Level 0 Level 1 Level 2 Level 2

Service

Format

Self Service Outside-in expert guidance Joint assessment Joint Project

Outcome of

engagement

Rough order of magnitude of value SAP Business Case Joint Business Case Value Realization

Granularity C-Level KPIs

Related Value Drivers.

C-Level KPIs

Related Value Drivers

Suggested BPA-KPIs.

C-Level KPIs

Related Value Drivers and BPA-

KPIs.

Selected Value Drivers and

related BPA-KPIs

Approach Benchmarking based on selected

value drivers against peers.

Detailed calculation per Value

Driver based on benchmarking,

available data and SAP

assumptions

Detailed calculation per Value

Driver based on benchmarking,

customer priorities and data.

Validated with business

counterparts.

Identification of leading KPIs to

improve selected value drivers.

System and data driven value

realization based on process

improvement methodology

Customer

invest

1 day 1 day < 1 month Depends on depth of

engagement

Sourcing - SAP paid Customer paid Customer paid

8x4 Tools & Services

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▪ All Details are described in the

feature scope description of

SAP S/4HANA

▪ Measurement will be done via

Authorization objects

SAP S/4HANA: No surcharge on like for like functionality

SAP ERP Licensing SAP S/4HANA Licensing

SAP ERP Core

SAP ERP LoB &

Industry solutions

SAP S/4HANA

Enterprise

Management

SAP S/4HANA LoB &

Industry solutions

MRPWM

Basic

Credit

Mgmnt

Enh.

Credit

Mgmnt

EWM PP/DS Enh.

Credit Mgt

Basic

Credit Mgt

EWM

WM

PP/DS

MRP

SA

P E

RP

Lic

en

se

Engin

e

Lic

en

se

SAP S/4HANA

Enterprise

Management

License

Engine

License

▪ Principle of ONE drives us to deliver only ONE solution for ONE business problem

▪ Even if SAP ERP capabilities are realized in a solution that comes with ist own license, we do not charge in case solely the

functional scope is used, that is described as part of the SAP S/4HANA Enterprise Management

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Only SAP S/4HANA solutions are allowed to run on an SAP S/4HANA installation

▪ SAP S/4HANA is a new product, not the legal successor of SAP ERP/SAP Business Suite

▪ Limitation in our Software Use Rights (SUR) to separate the commercial worlds:

SAP S/4HANA: Commercial Separation from the SAP ERP World

SAP ERP Licensing SAP S/4HANA Licensing

SAP ERP Core

SAP ERP LoB &

Industry

solutions

SAP S/4HANA

Enterprise

Management

SAP S/4HANA

LoB & Industry

solutions

SAP S/4HANA

Enterprise

Management

SAP ERP LoB &

Industry

solutions

✓ ✓

SAP S/4HANA

Enterprise

Management

SAP ERP Core

functionalityX

X

unless explicitly permitted

via „Compatibility Packs“

Why allow the use of

Compatibility Packs on

SAP S/4HANA?

▪ Allow sufficient time for

redesign of business

processes under SAP

S/4HANA

▪ Make transition easier for

installed base customers

Product

Conversion

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Customer can convert existing licenses to get SAP S/4HANA EnginesSAP S/4HANA Conversion Policy

Classical engine

SAP Named Users

SAP S/4HANA engines

1. Engines CONVERT via the SAP Conversion Policy, 100%

conversion credit (“Model 1”), allowing classical engine to

convert to SAP S/4HANA engine via approved path forward

2. SAP Named Users EXTEND via the SAP Extension Policy.

(There is thus NO conversion). Except Retail, Banking,

Healthcare/Clinical and Industry Named Users which convert

when the engines convert.

Principle

1. Engines convert via SAP Conversion policy

2. Named User Licenses extend via SAP Extension Policy

Background

▪ As only SAP S/4HANA solutions are allowed to run on an SAP S/4HANA environment (unless otherwise allowed with a compatibility pack)

▪ Customers having licensed the classical SAP Business Suite version of that engine already can use the SAP S/4HANA conversion policy to

move to the new solution

▪ Once converted to the SAP S/4HANA version of the engine, the customer is allowed to run the classical engine as well in a separate

installation until 31st Dec 2025 (measurement always on the sum of units used in all installations)

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SAP S/4HANA: Keyless Home for Digital World (e.g. no SAP Named Users)

SAP S/4HANA Enterprise Management

User

MetricMetricMetric

Classic OP pricing model New OP pricing model

Per user fee

Per user fee

Named

Users

Per user fee

Metric

SAP ERP package

Metric

Flat Fee

Keyless

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SAP S/4HANA Contract Conversion

SAP HANA

Classical users

and applications

Agnostic

applications

Technology

solutions

3rd Party solutions

3rd party DB

SAP HANA(minimum:

15% of new HSAV)

SAP S/4HANA

Enterprise Mgmnt

users

SAP S/4HANA

solutions

Agnostic

applications

Technology

solutions

3rd Party solutions

SAP Acquisitions*

Old

ma

inte

na

nce b

ase

Ma

xim

um

co

nve

rsio

n c

red

it(incl. 3

rdpart

y c

onvers

ion)

X

Only SAP HANA to SAP HANA credit

NO credit

Commercial contract view

prior conversion

Commercial contract view

after conversion

*Acquisitions of the past 3 years

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Thank you.

Contact information:

Uwe Grigoleit

[email protected]

S/4 HANA GTM