SAP S/4HANA Launch

bei

Regensdorf, 21.11.2019

Dr. Harald DörnbachGeschäftsführer IT Service

1. About Viessmann

2. Initial Situation

3. Project procedure / milestones

4. s.m.a.r.t. S/4 Data Migration

5. Key success factors

6. Benefits

7. Q & A

Agenda

Employees worldwide

Western Europe

(thereof Germany)

China

Russia & Kazakhstan

North America

12,000 Viessmann family members

11,400

6,900

260

200

130

Leadership organization:

one team, two business areas, one purpose

Executive

Council

Executive

Board

Maximilian Viessmann

Group Co-CEO

Climate Solutions

Prof. Dr. Martin

Viessmann

Chairman

Dr. Ulrich Hüllmann

CFO & SSCs

Joachim Janssen

Group Co-CEO

Industrial & Refrigeration

Solutions

Dr. Tino Weber

CEO Industrial

Solutions

Frank Winters

CEO Refrigeration

Solutions

Dr. Klaus-Peter Kegel

CEO Heating

Solutions

Dr. Markus Pfuhl

CDO Digital

Transformation

Dr. Florian Resatsch

CEO VC/O

Using the right energy sources

Covering all use cases

AirSolar Geothermal Biomass GasOilElectricity

Air QualityCoolingHeatingElectricity

GenerationEnergy Storage

Renewable Conventional

Climate

Solutions

Products & Systems

Value Added Services

Products & Systems

Digital Services

Connectivity & Platforms

...

...

...

...

The Integrated Viessmann Solution Offering

Climate

Solutions

185

70 Million

83

9.600

180.000

2

Employees Gender: Male 90%, female 10%

Allendorf Age: 20-30: 24%, 30-40: 30%, 40-50: 16%, 50-60: 23%, 60-70: 6%

Shares Base: mil 47, IoT & Data: mil 14, Projects: mil 9

Supported Legal Viessmann entities, 64% foreign companies

Companies Biggest: Viessmann Deutschland, Smallest: Viessmann Lettland

Int. User Sales: 40%, Production: 38%, Administration: 17%, R&D: 5%

Ext. User End customer: 85%, Heating installer: 15%

Data 850 virtual servers: Windows: 60%: Linux: 15%, AIX: 25%

centres

Cloud Growing trend: MS Azure, Salesforce, GSuite, checking phone routing

appliances MS Azure: 370 virtual servers, 530 platform services

82Employees Gender: Male 95%, female 5%

Wroclaw Age: 20-30: 27%, 30-40: 73%

Our organization is pretty young and we are aligned internationally. We do have a high IT user

penetration and already a significant but continuously increasing usage of cloud resources.

IT Service GmbH

About Viessmann

IT Service GmbH

About Viessmann

Corporate Network

Processing & Storage

Application Landscape

Solution DevelopmentCustomer driven end-to-end projects

vertical: whole technology stack

horizontal: whole supply chain

Wired Wireless

Hybrid: Cloud and on Premise

Collaboration ERP, CRM, PLM IOTData

Supported companies

Initial Situation

• Company codes : 190

- Sales companies : 78

- Production companies: 28

- Other companies : 84

• Countries : 34

• Users : 6.000

ERP is the central component of our

international business system landscape

Application Landscape

Initial Situation

3rd

Party

DWH

PLM Portal

PTV

NEO

MobileCAD

EWM

SAP

PX

• One global ERP with one Client for the whole

group

• 38 AddOns and name spaces

• System on Unicode

• 34 different languages

• Database : 5 TB

• 5 x SAP Application-Server /

2 x HANA-DB (Cluster)

Sales

force

Reasons for S/4 HANA

Initial Situation

Use S/4 HANA capabilities to enable Viessmann requirements and improvementsBusiness

Standardize prcesses by using best practice approaches based on SAP S/4 HANA greenfield Processes

Harmonization of business- and end to end –processes in guidance with the GPO-projectGovernance

Functional methods to migrate the complete dataset including the historyTransition

S/4 HANA Migration as biggest single investment in Viessmann IT history so far

Timeline and Effort

S/4 HANA

as future

digital

platform

Using state of the art technology to improve user experience, system performance and reducing complexity within the IT infrastructure

System

Why Greenfield ?

Initial Situation

Necessary processes will be checked with the Business

• Standard / best of breed approach

• other process will be take over from current system or will be new designed

• Migration of all necessary current data

Brownfield

Greenfield

Full Transition of existent data and processes.

This includes a lot of old and individually development and processes!

Decision

Steps to S/4 HANA

Project procedure / milestones

1.

Ste

p HANA DB Migration

Business Partner Implementation

New General Ledger

2019

Confirmation of

new S/4 HANA

system:

22.04.19

20182017

Pre

S/4 HANA Process Blueprint Analysis

2.

Ste

p

S/4 Transistion

- Detailed Process

analysis and adoption

- 3 Integration Test

- User Acceptance Test

22.4.IT3IT3IT3

Particular feature: At Viessmann we have one ERP-system

-> GoLive only as big bang possible

Pre-study

Project procedure / milestones

• Increase usage of mobile user interfaces

• Benefit from FIORI user interface to increase user experience and simplify processes

• Analyze usage of embedded analytics for functional areas

• Decrease training costs for non-experienced users

• Identify optimization potentials and decrease Viessmann specific process variants by reverting to SAP Standard processes

• Achieve business benefits with S/4 HANA innovations

• Identify must activities / changes in preparation for S/4 HANA transition

• Reduction and simplification of the current Application landscape

• Replace out-of-date and redundant applications by SAP standard features

• Analyze current SAP solution with regards to S/4 HANA transition activities

S/4

HA

NA

Str

ateg

ic B

luep

rin

t

Use

rEx

per

ien

ceP

roce

sses

Ap

plic

atio

n

Workshops by SAP Module – Overview

Project procedure / milestones

Workshops conducted

Process activities identified

SD 5 9

PP 5 14

MM 4 8

FI/CO 3 20

CS 2

PLM 2 2

GTS 1 6

PS 1 1

PM 1 7

QM 1

WM 1

SUM 26 68

Timeline and Milestones

Project procedure / milestones

Further Optimization Requirements

Selective Code Migration

Data Migration (ECC → S/4)

S/4 HANA 1709 (new application)

Template Readiness

S/4 HANA Impacts Resolution (MUST)

New Processes / Optimizations

Innovation Cycle

MTO MOMSalesforceService Mgmt. GermanyCompany Code harmonis.Vendor harmonis.COPA / PCA

2019

Design/Build UAT

Feb Mar AprOct Jun Jul Aug Sep Oct NovMay Jan Feb Mar Apr JunMayNov DecSep Dec Jan

2017 2018

optional: S/4 HANA 1808 upgrade check

IT2

IT1

GoLive Cutover

Par

alle

l Pro

ject

s

IT3

S/4 HANA – Data Migration Approach

s.m.a.r.t. S/4 Data Migration

Data mapping based on central defined logic,

e.g.• Accounts• Material types• Number ranges• …Enrichment / Cleansing

of data

Import of data into target system by

• SAP standard functions (IDOC, BAPI, Batch Input, …)

• cbs direct database update

Definition of import method on object level

Data extraction Mapping & Cleansing S/4 transformation Post | Update

Source System Target System

Flexible extraction of data based on given

selection criteria, e.g.• Company codes• Fiscal Years• Open or closed

processes• Deletion Flags• …

Transformation into S/4HANA® structures

invokingstandard SAP logic

• For each integration test using cbs migration tool

(table-oriented)

s.m.a.r.t.

MADE TO

MEASURE

THE s.m.a.r.t. MADE-TO-MEASURE PROCEDURE

Legacy ERP

New S/4System

(Selective code & customizing migration)

1 Install empty S/4 systemEmpty

SAP S/4HANA

Clean up & enhancecoding and customizing2

Harmonize and migrate data to S/4HANA®3

S/4 HANA – Data Migration Approach

s.m.a.r.t. S/4 Data Migration

cbs standard software, 100% SAP-based

Combination of Database & transactional updateallows new project types and solutions

for customer specific problems

Audited by Ernst & Young

High-speed transformation into target structureswithout business downtime

1995

2000

20052008

cbs System MigrationWorkbench

cbs Standardization, Harmonizationand Consolidation Framework

cbs ET EnterpriseTransformer®Use of SAP R/2-R/3

Migration Tools

cbs Data MigrationFramework

cbs ET® 4S/4 HANA

20152012

Unique end-to-end solution for all transformation tasks

Pre-delivered cbs ET® Business Objects

Scalable, customizable, re-useable

Customer specific solutions instead ofpre-defined scenarios

Extensive analysis- and evaluation-features

Extensive, comfortable and complete protocols

Full audit trail for all settings (fully integrated intoSAP transport management)

Full audit trail for all transformation activities –embedded logging in cbs ET®

Build in holistic validation features

20 years. 1.000 projects. One single software. Proven. Audited. Integrated.

cbs ET Enterprise Transformer® - Summary

S/4 HANA – Data Migration Approach

s.m.a.r.t. S/4 Data Migration

• Quantity structure :

ca. 25 bn. records

ca. 10 bn. in advance

ca. 15 bn. GoLive

incl. history

• Number of business objects / tables :

6.104 Business objects

37.276 tables

• Migrated modules :

FI, AM, CO, MM, WM, PP,SD, HR,

CS, PS, QM, PM,

• Performance (Import) :

up to 45 Mio records/minute

• Resource requirements GoLive :

Cores : 126 IBM Power-cores

RAM : 5,1 TB RAM

Batch-Jobs : ~260 parallel jobs (Import)

• Highlights / drivers for complexity :

ACDOCA / Assets

Material-Ledger before, afterwards

Special currency constellations

User Acceptance test

s.m.a.r.t. S/4 Data Migration

Test Cases

created: 12.000

Bugs created: 208 (was 173)

open: 42 (was 96)

Status

“done”

with bug:

229 (was 731)

critical: 0 (was 14)

high: 17 (was 41)

Status

“done”

• Of 10.292 functional test tickets, 229 (2,2%) have the status bug

• At the end of Functional User Acceptance Test, no bug has a “critical” priority any more

• In the current simulation of Data Validation in Asset Mgmt, 1 bug was found in 2019, solution is under way

CutOver Go Live Easter Weekend

s.m.a.r.t. S/4 Data Migration

Preparation & Back-

Up

ITS SAP

Datamigration

cbs

(66 h)

Rework

ITS SAP

(+ CKU)

ITS BasisRework

cbs

SAP

Queries /

Reportvar.

ITS SAP

Night

Puffer

Data

Validation

600 User

(4-6 h)

Smoke

Test

ITS SAP

Inter-

face

activ.

SAP

Soft Opening & Bug

Fixing

ITS SAP

Do

18.4.

12:00

Do

18.4.

18:00

So

21.4.

12:00

So

21.4.

15:30

Mo

22.4.

22:00

Mo

22.4.

08:00

Mo

22.4.

14:00

Mo

22.4.

18:30

Di

23.4.

08:00

Technical

Validation

ITS

MondayNightSaturdayNightFridayNightDay

Bug Fixing

CBS

Night

GoLive Tuesday 23. April, 08:00

Mo

22.4.

16:30

Bug Fixing

CBS

Posting

Allowance

Point of No Return /

Activation of Interfaces

SundayNight

Standardized processes - support by business departments

Key success factors

Requirement for business contact person

▪ Very good process knowledge and its usage in the SAP-System

▪ Independent execution of training and documentation

▪ Consider your current process issues - The resolution of pain points are triggered by business need

▪ The business contact person is needed in workshops (several days per week; not continuously one week after

another)

▪ Business department is highly needed for the project. - Name contact person

Viessmann Business DepartmentViessmann IT Service

GPO

Close

interaction

Communication: S/4 HANA Site

Key success factors

S/4 HANA Site now includes information

for the end user:

▪ Training Overview

▪ Functional FAQ’s

▪ Transaction Finder

▪ Key User Finder

▪ List of Fiori Apps

▪ Link to Vi2Go Articles

Plus information for the Cut-Over Team:

▪ Migration Progress

▪ Cut-Over FAQ’s

▪ Cut-Over Plan of ITS

Project success factors

Key success factors

● Cross-functional cooperation of GPO, Central Key Users and IT Service and cbs

● High focus on complete business processes

● Intensive preparation and testing of end-to-end processes

● Alignment of the entire team and overall target synchronization

● Governance by TOP Management

● Integrated PMO approach with intensive time and risk management

Viessmann Business DepartmentViessmann IT Service

Close interaction GPO

Overview Soft Benefits

Benefits

Greenfield driven

• Improved logistics service level („LSG“) based on better

material requirements planning and better alignment of

promotions with SCM

• Increase of contribution margin with new pricing and

conditions system, increase of online ordering with newonline specific- and promotion rebates

Technical driven

• Easier handling of online payment with possibility of credit card payments (S4)

• Increase of average order amount using guided selling (Configit, SAP)

• Better fulfillment of legal requirements in customs clearance (SAP GTS)

• Better informed sales agents due to 360° customer view

(S4, Fiori, Salesforce)

Sales Technical Service (‘TD’)

Greenfield driven

• Increase of direct delivery of spare parts to service

engineer from WVZ by service provider LPR for other

countries

• Higher availability of critical spare parts by internalprioritization in case of bottlenecks

Technical driven

• Better mobile service data collection (Fiori)

• Possibility for credit card payments (S4, Fiori)

• Higher efficiency in service process, e.g. faktura (SAP CS, Neo)

• Better spare parts requirements planning of cars (S4)

• Higher degree of seamless customer experience by

better integration of IT systems (SAP CS, Fiori, Salesforce,Neo, VitoGuide)

• Better integration with sales due to 360° customer view

(S4, Fiori, Salesforce)

Soft benefits have not been quantified, but will strongly support customer satisfaction

Clarification and Tidying up

Benefits

ERP S/4 HANA * Change

Z-Programs ~ 24.000 11.106 -53%

Z-Transactions ~ 4.500 3.512 -22%

• Viessmann-specific programs and transactions have

been reviewed and reduced

• New Viessmann-specific programs and transactions

have been introduced (German pricing PKS)

• Next Steps: in new S/4 HANA System,

(a) reduce archiving time periods and

(b) continue with benefit driven process improvements

* includes new German Pricing PKS Z-Programs and Z-Transactions, as of April 5th 2019

Highligths with S/4

Benefits

● Faster system with higher performance

○ For example MRP calculation time :

● Process enablement through new tools:

SAP Integrated Business Planning (IBP) 50 min

6 h

MRP Calculation Time

● Mobile solution powered by

SAP FIORI Apps

Questions & Answers

Questions & Answers