S/4HANA as the first step to the Intelligent Enterprise · SAP Strategy - Guiding Principles & SAP...

S/4HANA as the first stepto the Intelligent Enterprise

Bobby VetterSenior Vice President - GPO GTM ERP Core

Sept. 20th 2018

2PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

S/4HANA Business Status - Start the Journey to the Intelligent Enterprise

Fastest adopting product in SAP’s history

2000+ live customer on premise

100+ live customers cloud

~ 100 Go-lives

per month

26

industries

4000+ projects in flight

92

countries

36

countries

460+ customers


The Digital Era is evolving into The Intelligence Era

ENABLING TECHNOLOGIES

CUSTOMER VALUE CREATION

• Mobile & Smartphone

ubiquity

• Cloud Computing

• Social Networks

• Big Data

Cloud, Mobile & Big Data2000s - 2010s

Digital

Transformation

• Widespread PC adoption

• Broadband Internet

• ERP and business process

technologies

Client Server & Internet1990s - 2000s

Business

Process

Automation

Mainframe & PCs1960s – 1980s

• Transistors & silicon

revolution

• Large scale Mainframe

Computing adoption

• Emergence of PC’s

• Plant floor automation

Industrial

Automation

• Machine learning (ML) and

artificial intelligence (AI)

• Internet of things (IoT) and

distributed computing

• Blockchain

Intelligent Technologies2010s - 2020s

Intelligent

Enterprise


Hype Cycle for emerging Technologies, Source: Gartner , 2018

Speech recognition accuracy today

(better than human rate 94.1% )


Intelligent enterprises elevate employees to focus on higher-value tasks

97%Image recognition accuracy today

(better than human rate 95% )

Of companies see ML as

critical for Competitive

Advantage!

94%

60%Of human tasks will be

automated by 2025

95.1%Speech recognition accuracy today

(better than human rate 94.1% )

Source: SAP CSG analysis, McKinsey Quarterly Report July 2016,

Google PR, Microsoft PR, SAP Market Model


SAP Strategy – Deliver the Intelligent Enterprise

THE INTELLIGENT ENTERPRISE

features 3 KEY COMPONENTS:


Cloud Native Architecture

Open APIs / Open Platform

Applied Intelligence

Integration “out of the box”

Next-gen data

management

Best In

Class Cloud

Integration Open SAP

Breakthrough

Innovation

SAP Strategy - Guiding Principles & SAP Technology Strategy

Business Data

Ownership

Customer

Experience

Consumer Grade UX


Intelligent Suite: Deliver intelligence across value chains

Out-of-the-box integration leveraging SAP

Cloud Platform, the SAP Analytics Cloud

solution, and a common data foundation with

SAP HANA and SAP Data Hub

Best-in-class UX with

consistent experience

across the entire portfolio

Easy to extend, allowing

customers and partners to

customize solutions quickly

Intelligence embedded

in the applications making

the workflows smarter

Modular, making

it easy to consume and

cost-effective to operate.

Digital Core


On PremiseCloud

SAP S/4HANASAP S/4HANA & S/4HANA Cloud’s code line,

simplified data model, and modern user

experience are consistent across both

environments.

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

Code Line

Data Model

User Experience

ONE

S/4HANA - You have complete choice


S/4HANA - Choose Deployment Model

SAP S/4HANA CloudSAP S/4HANA Cloud, single-tenant edition SAP S/4HANA

Business Process Standardized, core ERP Flexible, ext. ERP Customizable, ext. ERP

Innovation Lifecycle Quarterly Semi-annual Annual, customer-led

TCO Lowest Lower Higher

System governance SAP-led Customer-influenced Customer-led

IT infrastructure SAP, public SAP, dedicated Customer-managed

Customization Within Standards Within Standards Open to Modifications

Extension PaaS, SCP PaaS, SCP Open, SCP

System delivery New implementation New implementation New or ECC conversion

2


Re-imagined business models

Products + Services -> as subscriptions

Additive manufacturing

Lot size of one

IoT/sensor based managements of assets

Re-imagined business processes

Embedded business functions (WM, TM, MDG, ATP,..)

New MRP, dynamic inventory, constrained based planning

Intelligence through machine learning applications

Industry solutions in the core

Insight to action

New UX – Fiori – Any Device

In the moment, embedded analytics

Self-service, multi-dimensional reporting

Simplifications

Streamlined data models & landscape simplification

Better performance and scalability

Flexible deployment options

S/4HANA On Premise - 1809 is 5th release – mainstream adoption status

Watch Video

4

3

2

1

https://www.youtube.com/watch?v=lo9l0ES-rhc

https://www.youtube.com/watch?v=lo9l0ES-rhc


Join the S/4 HANA Movement - Adoption Starter – Scope & Packages

Key answers to

Why? Business view

Innovation Case

Efficiency Case

Innovations

New Capabilities

Value Driver & Aspiration

Benefit Case

Baseline + Potential

Effort Estimate

What? Technical view

Target Products

Target Instances

Target Architecture

Product Recommendation

Consolidation Opportunities

How? Transformation viewSequence &

Approach

Transitions and Approach

Start Point / Migration Path

Conversion vs. Greenfield

Readiness to start

Relevant Accelerators

Next Level Services to plan for

Packages (Tools/Services applied)

Foundation

(mandatory)

1. Scoping Digital

Core

2. Transformation

Navigator

3. Innovation

Scenario

Check

Business

4. Opportunity

Check

5. Quick Value

Assessment

6. Effort Estimate

Transformation

7. Readiness Check

8. Conversion vs.

Greenfield

9. Start Point /

Migration Path


Join the S/4HANA Movement - Adoption Starter – Elevator Pitch

The typical customer questions*.. ..mapped to tools and checklists.. ..in a fix sequence..

..with efficient delivery model**.. ..to create a pre-defined output.. ..for a customer decision proposal

9IN T E R N A L© 2 0 1 8 S A P S E o r a n S A P a f f i l ia te c o m p a n y . A l l r ig h ts r e s e r v e d . ǀ

Foundation (m

andato

ry)

n Prework (Solman, Plugin, S-User, Role identification, Data Collection)

n Kickoff Meeting, Process Explanation

n Scoping

n Scoping Digital Core

n Transformation Navigator**

n Innovation Scenario Check

Busin

ess n Opportunity Check

n Quick Value Assessment

n Effort Estimate

Tra

nsfo

rmation

n Readiness Check

n Conversion vs. Greenfield

n Start Point / Migration Path

n End of Analysis

n Synthesis Workshop

n Plan 1.0 available

EGI=Expert-Guided Implementation* SAP Participation in Pilot-Phase, tbd after Pilot

** Includes Innovation Check

Scoping Analysis / DiscoveryAlignment/

ConsolidationPreparation

Foundation (m

andato

ry)

S/4HANA Adoption Starter – 90-day schedule

Busin

ess

Tra

nsfo

rmation

2 m onths 2 w eeks2 w eeks

Transform ation D esign v 1.0 agreed

Scope D efined

D raft T ransform ation D esign

Process Explained

D ata C ollection

R eadiness C heck R eview

R eview

R eview

1. Scoping Digital Core

2. Transformation Navigator

3. Innovation Scenario Check

4. Opportunity Check

5. Quick Value Assessment

6. Effort Estimate

7. Readiness Check

8. Conversion vs. Greenfield

9. Start Point / Migration Path



n Scoping


2. Transformation Navigator**




6. Effort Estimate

7. Readiness Check



n End of Analysis




Foundation (m

andato

ry)



n Scoping




Busin



n Effort Estimate

Tra

nsfo

rmation

n Readiness Check



n End of Analysis



Customer only, SAP support on demand

1:n interaction between SAP and customer

1:1 interaction between SAP and customerEGI=Expert-Guided Implementation

* SAP Participation in Pilot-Phase, tbd after Pilot




Foundation (m

andato

ry)


Busin

ess

Tra

nsfo

rmation

2 m onths 2 w eeks2 w eeks

*


Scope D efined

D raft T ransform ation D esign

Process Explained

Innovation Check

N avigator R eviewQ&A Q&A

O pportunity C heck R esults

D ata C ollection

R eadiness C heck R eview

EG I 1-3

R eview

R eview

Q&A Q&A

Q&A Q&A






6. Effort Estimate

7. Readiness Check





n Scoping






6. Effort Estimate

7. Readiness Check



n End of Analysis




Foundation (m

andato

ry)



n Scoping




Busin



n Effort Estimate

Tra

nsfo

rmation

n Readiness Check



n End of Analysis





Customer only, SAP support on demand

1:n interaction between SAP and customer

1:1 interaction between SAP and customerEGI=Expert-Guided Implementation

* SAP Participation in Pilot-Phase, tbd after Pilot


Foundation (m

andato

ry)


Busin

ess

Tra

nsfo

rmation

*


Scope D efined

D raft Transform ation D esign

Process Explained

Q&A Q&A

EG I 1-3

Q&A Q&A

Q&A






6. Effort Estimate

7. Readiness Check





n Scoping






6. Effort Estimate

7. Readiness Check



n End of Analysis



H alf T im e check point

2 m onths 3 w eeks1 w eek

1 2 3

4 5 6

* derived from catalyst customers, signed off by DSAG ** hence can be offered for free under enterprise support contract

1:1, 1:N, customer only

separation of tour guide

and content expert role


S/4HANA Cloud - Evolving at cloud speed

18 23 25 29 33 33 36 38

17081705 17111702Release

Intelligence API operationsScope items

(business functions)Countries

1808

Upcoming*

244273 329

13071530

34

9

1805

364

25

1880

132

2206

158

1742

3000

390

68

1811

521682

5

4 quarterly innovativereleases per year

Finance-centricadministrative ERP built to deliver value to all customers

Strong 2-tier ERP capabilities

Selected industry-specific functionality

Unmatched international support (38 countries and 23 languages by end of 2018)

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

1802

40

432


S/4HANA Cloud - some 1808 Release Highlights

Processing long lists of open purchase

requisitions, operational purchasers can

easily create RFXs from the possible

bundles suggested by a Machine Learning

algorithm. This significantly automates the

RFx process by also reducing exception

and errors to improve efficiency and cost,

leading the way to a intelligent no-touch full

automation world.

ProcurementPropose Creation of RFQ

ManufacturingDynamic Buffer Level

Adjustments for Transfer

Materials Utilizing Machine Learning capabilities, the

buffer level proposal for materials with source

of supply type “transfer” can be calculated

accurately. This results in a better estimate of

stock transfer lead time, thereby better sizing

of the buffer, which ultimately results in better

service levels and potentially also lower

bound capital in form of inventory.

FinancialsSmart Alerts for Profit &

Loss Analysis

Smart Alerts aims to autonomously detect

unusual business situations in revenue and

cost accounts. Smart Alerts will pro-actively

inform the group controller of potential

issues and propose explanations for

unusual business situations by analyzing

the revenue and cost data. Using smart

alerts, unusual business situation can be

identified earlier, enabling more time to take

appropriate measures.

Sales manager can now gain reliable

insight into expected sales volume based

on Machine Learning and Predictive

Analytics.

Based on the improved sales forecast, the

accuracy in requirements planning can be

enhanced as well.

SalesSales Performance Prediction

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

Thank you.

Contact information:

Bobby Vetter

SVP Global Partner Organization

GB Solution Portfolio Management ERP Core Solutions

+41 58 871-6121

[email protected]

Twitter: BobbyVetterSAP

mailto:[email protected]

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