Stefan Batzdorf, S/4HANA Pre-Sales September, · PDF fileS/4HANA Enterprise Management Stefan...

S/4HANA Enterprise Management

Stefan Batzdorf, S/4HANA Pre-Sales

September, 2016

Public

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Customer

SAP S/4HANA, on-premise editionThe Digital Core

SAP S/4HANA

SERVICE

SAP S/4HANA

HUMAN RESOURCES

SAP S/4HANA

MANUFACTURINGSAP S/4HANA

SUPPLY CHAIN

SAP S/4HANA

MARKETING

SAP S/4HANA

FINANCE

SAP S/4HANA

SALES

SAP S/4HANA

SOURCING &

PROCUREMENT

SAP S/4HANA

ASSET

MANAGEMENT

SAP S/4HANA

RESEARCH &

DEVELOPMENT

SAP S/4HANA T

he D

igita

l CoreT

he D

igital C

ore

Streamlined

Procure to Pay

Accelerated

Plan to Product

Optimized

Order to

Cash

Enhanced

Request to

Service

Core FinanceCore Human

Resources

» Major Simplifications in:

Inventory Management

Material Requirements Planning

Capacity Planning

Availability to Promise

Sales and Distribution

Procurement

Finance

etc.

» Complemented by converged

capabilities of:

SCM

CRM

PLM

SRM

Industry Solutions

» Supporting digital trends like Internet

of Things, Business Networks, etc.


Material Requirements Planning


Available To Promise & Backorder processing

Capacity Planning

Material Valuation

Industry solutions to core

Universal Journal

Central Finance

Re-architecting for in-memory platform

Responsive user experience design

Unifying functionalityin core

Sales Representative Order Management & Billing

Procurement Clerk Material Planner

> 20

3 < 1

Laggards Best-in-class Target

Accelerated Financial Close

This is the current state of planning and may be changed by SAP at any time.

Key Business Innovations in

SAP S/4HANA Enterprise Management


SAP S/4HANA, on-premise edition 1511Key innovations mapped to Product Map

Streamlined

Procure to Pay

Supplier Information and Master Data

Sourcing and Contract Management

Operational Procurement

Inventory and Basic Warehouse Management

Invoice and Payables Management

Optimized

Order to Cash

Order and Contract Management


Receivables Processing

Service Master Data Management

Service Management

Service Parts Management

Service Agreement Management

Accelerated

Plan to Product

Production Engineering and Planning

Production Operations and Execution


Product Development and Project Control

Maintenance Management

Quality Management

Core Human

Resources

Cross Application Time Management

Core Finance

Accounting and Financial Close

Cost Management and Profitability Analysis

Enhanced

Request to Service

Material

Requirements

Planning

Capacity

Planning

Order Mgmt. &

Billing

Inventory

ManagementProcurement

Material

Valuation

Industry to

Core

Accelerated

Financial

Close

Universal

Journal &

Central Finance

Available to

Promise

Separate slide

SAP S/4HANA, on-premise edition Business Scope for Finance


Top 5 Questions to Ask......the CFO

1What if you could ask any question of your business, and get insightful, fact based answers in seconds,

not days?

2

3

4

5

What if there would be only one single system to work in Finance – for transactions, planning

and reporting?

What if your people could work on what they are paid for – analyze data, not search

them?

What if all information would be available in real time not only at period

end?

What if there won’t be any separation of Finance and

Controlling?


Company can be managed with unseen effectiveness

while effort to generate data is saved

No effort to ensure correct and consistent data across accounting, planning and

business intelligence

Data available in real-time – on your fingertip

Analyze the business on the fly

No reconciliation between accounting and controlling needed anymore

High effort to provide the right information at the right

time to manage the company

High effort to ensure data is correct and consistent across accounting-, the

planning- or the business intelligence applications

Available data is not as actual as it is needed

Some data is not available when needed (only end of period)

Financial and managerial accounting

(Controlling) are completely separated in

different documents and need to be

reconciled at month end

BEFORE WITH S/4HANA

The Business Process Before & With S/4HANAFinance

Σ Σ Σ

?


Finance Value Map – Achieve Financial Excellence

Accounting and

Financial Close

Financial Planning and

Analysis

Treasury and Financial

Risk Management

Finance

Operations

Enterprise Risk

and Compliance

Management

Collaborative

Invoice to Pay

Travel Management

Receivables ManagementEnterprise,

Risk Management

Controls and Compliance

Management

Access Governance

Accounting

Entity Close

Corporate Close

Develop and Translate

Strategy

Planning, Budgeting and

Forecasting

Profitability and Cost

Management

Payments and Bank

Communications

Cash and Liquidity

Management

Debt and Investment

Management

Monitoring and Reporting Reporting and Disclosure

Financial Close

Governance

Commodity Risk

Management

Financial Shared ServicesFinancial Risk

Management

International Trade

Management

Fraud Management

Audit Management

Real Estate Management


Finance Value Map – Achieve Financial Excellence

Innovations in Finance with SAP S/4HANA Finance

Accounting and

Financial Close

Financial Planning and

Analysis

Treasury and Financial

Risk Management

Finance

Operations

Enterprise Risk

and Compliance

Management

Collaborative

Invoice to Pay

Travel Management

Receivables ManagementEnterprise,

Risk Management

Controls and Compliance

Management

Access Governance

Accounting

Entity Close

Corporate Close

Develop and Translate

Strategy

Planning, Budgeting and

Forecasting

Profitability and Cost

Management

Payments and Bank

Communications

Cash and Liquidity

Management

Debt and Investment

Management

Monitoring and Reporting Reporting and Disclosure

Financial Close

Governance

Commodity Risk

Management

Financial Shared ServicesFinancial Risk

Management

International Trade

Management

Fraud Management

Audit Management

Real Estate Management

SAP S/4HANA Finance

New or significantly renewed solutions

SAP S/4HANA Finance solutions that have currently not been re-architected for the SAP HANA platform


Accounting and Financial Close

Central Finance

» Real-time replication of secondary CO

postings from several source systems

into a central system

» Document drill back to the original FI

document in the source system

» Replication of cost objects (production

orders, product cost collectors, and

internal orders)

» Mapping functionality for harmonization

of master data (optionally via MDG

solution)

» Centralized error handling with the

error correction and suspense tool.

Accelerated Financial Close

» Improved soft close and hard close

» Real-time profitability by earlier derivation

of market segment

» Correct asset acquisition values at any

time - now also for valuation areas with

“special items”

» Elimination of multiple reconciliation tasks

due to the universal journal

» Significant speed-up of asset depreciation

run.

Universal Journal

» Ultimate single source of truth for instant

insight and easy customer extensions

» ONE line item table with full detail for all

applications

» This replaces the “logical document” of

release 1.0.

» Secondary cost elements are now G/L

accounts.

» Data stored only once: no reconciliation

needed by design

» Reduction of memory footprint through

elimination of redundancy.

> 20

3 < 1

Laggards Best-in-class Target


Personalized, instant insight across finance and controlling

• Concept: “Take the best of all worlds” (e.g.

ledger, market segment, coding block, etc.)

• One line item table with full detail for all

applications - for instant insight & easy

extensibility

• This replaces the “logical document” of SAP

Accounting 1.0.

• Data stored only once: no more reconciliation

needed - by design

• Reduction of memory footprint through

elimination of redundancy.

• Fast multi-dimensional reporting

possible without replicating data to business

warehouse (BW).

• If BW is in place anyway, only one single

extractor needed.

• Secondary cost elements are now

G/L accounts.


SAP S/4HANA Finance

Key NEW Innovations

Close Books in a

Day

Task acceleration

and automation

Intra-period

reconciliation

Soft close and

simulation (planned)

$Optimize Working

Capital

Group cash

management

Working capital

analytics

Continuous cash

collections

Invoice and discount

optimization

Ensure

Compliance

Fraud detection

and prevention

Audit management

Plan Dynamically

Integrated business

planning

Predictive

forecasting

Budget

management

(planned)

Centralize Finance

Real-time financial and

operational reporting

Harmonized internal and

external reporting

Group reporting in multi-ERP

and M&A situations

Flexible reporting in matrix

organizations

Analyze Plan Transact

S/4HANA Finance

From high-level to low-level exploration

SAP S/4HANA, on-premise edition Business Scope for Materials Management and Operations


Top 5 Questions to Ask......the CPO/COO/CMO

1What if you would not be tied to batch oriented processes because all runs have become extremely fast?

2

3

4

5

What if you could do a material requirements run on demand for single orders?

What if you would have real-time inventory transparency (across plants)?

What if your orchestration possibilities within ERP would also include

embedded finite planning

What if you could orchestrate your sales orders in one cockpit?


Fully see the road ahead and steer immediately in the

right direction:

Data from operations, business planning and business intelligence is always

consistent and correct.

Fast MRP, MRP on demand possible, real time Planning and execution

Planning on limited capacity possible due to co-deployment of PP/DS

Real time inventory management is possible

One to all supplier collaboration due to Ariba networks integration

Persistent sales order fulfillment monitoring possible

Fully integrated engineering and manufacturing BOMs

Process acceleration by completely new Fiori UIs

Driving in the dark or spending a lot of effort to switch on

some light:

Data from operations, planning or business intelligence needs to be reconciled

and is often not consistent – causing uncertainty and darkness

MRP takes so long that no real-time planning information and execution is

possible

Planning based on limited capacity is not possible

Inventories are higher than needed because of missing information and slow

reaction time

One to one supplier integration not possible

No persistent sales order fulfillment monitoring possible

Disconnected engineering and manufacturing BOMs

BEFORE WITH S/4HANA

The Business Process Before & With S/4HANAMaterial Management and Operations (formerly known as “Logistics”)


SAP S/4HANA Logistics & OperationsKey NEW Innovations

MaterialRequirements Planning

Fast MRP run, and new

working model for MRP

controllers based on decision

support.


Simplified data model

resulting in increased through-

put, flexible analytics at the

most granular level.

MaterialValuation

Elimination of locking,

increased throughput for

standard price utilizing

Material Ledger, that way

customers can use multi-

currencies, valuation methods

per different accounting laws

like GAAP.

Available To Promise & Backorder processing

New ATP Algorithm based on

HANA embedded in mass

component check in

production

CapacityPlanning

PP/DS Side by Side with

S/4HANA and embedded

as of 1610

Order Management & Billing

Enable monitoring of end-to-end order-to-cash

process & take actions for any exceptions,

information on the exceptions to resolve the issues,

lower TCO due to data model simplification,

support for the most recent versions of business

features such as FSCM Credit Management, GTS

Foreign Trade, SFIN Revenue Accounting, new

analytical capabilities.

Procurement

Increased efficiency in the

Procure-to-Pay processes,

new Analytical Apps &

Spend KPI’s, Ariba

Network Integration for PO

Order and IV.

Industry to Core

Included Discrete

Industries & Mill Products

(DIMP) in the S/4HANA

Enterprise Management.


You Can’t Buy Happiness but You Can Buy a BikeA very simple MRP demonstration

You are a production controller

and you get a sales order to

build one bicycle by noon today

Internal Transfer

Chain Ring

Production Order

2x Wheels

Production Order

Bicycle

Production Order

Frame

Requirement Date

Start Transfer

9:00am 10:00am 11:00am 12:00am8:00am

Internal Transfer

Chain Ring

Production

Order

1x Wheel

Production Order

Bicycle

Production Order

Frame

Start Transfer

Production

Order

1x Wheel

Requirement Date

Resource Occupied

9:30-10:30

9:00am 10:00am 11:00am8:00am 12:00am

Infinite Planning In MRP

Finite Planning in PP/DS

BOM

Internal Transfer

In-house Production

2x Wheels

Chain Ring

Frame

Bottle NeckResource Unavailable:

9:30-10:30


compensate for variations in the production

process such as machine breakdowns

help to stabilize any fluctuations in production

capacities and lead times

Planning Operation

Buffering in Manufacturing

Operation 1

Operation 2

Operation 3

2

1

Production Order

Earliest

Start Date

Latest

End DateLatest

Start Date

3 4

Raw Material Supply

Coating

x Buffer Time

Loading and Dispatch

Production line

Production Proposal

Start Date End Date

1 2 3 4 1 2 3 4

Lead Time

Lead Time

Earliest

End Date

in case the supplier is unable to

deliver the shipments on time

crash point

impossible to confirm the

close delivery time to the

customer, as you confirm

always the delivery date

based on buffer times

Latest

End Date

1 2 3 4

Earliest

End Date


Real-Time Manufacturing Planning with the MRP Run

Sales Orders Work OrdersInventory

Purchase Request Production RequestTransfer Request

MRP Run

06:00 AM 02:00 PM08:00 AM 10:00 AM 12:00 AM

MRP RunMRP Run MRP Run MRP Run

Purchase Orders

Analyze the current

situation based on real-

time information and

focus on single

shortagesMRP Controller

Time


Material Shortage

Fast and precise ATP

confirmation towards

customers.

Decrease stock and

increase service level.

Reduce Stock, increase

service level, event based

reaction to unexpected

changes.

New User Experience.

Fast multiple ATP checks

and fast rescheduling .

2. Process Innovation

Real-time data

integration

• Single-query access to

data

1. Performance Value

Value Creation through:

Enables immediate detection of material

shortages based on real-time data.

Considers multiple shortage definitions (=rules that

define how shortages are determined)

Shows all supplies and demands in chronological

order and determines available stock for each day.

S/4HANA Logistics

Real-time Inventory & Material Requirements Management


Unified Functionality in the CoreProduction Planning and Detailed Scheduling

ERP + PP/DS

1. Run planning in SAP S/4HANA (constrained + unconstrained)

Costly and

complex architecture

Latency

and error prone

Complex

for the user

Easy and simple

for the userFaster and responsive

production planning

Reduced total

cost of ownership

CURRENT FUNCTIONAL MODEL PLANNED IN 1610 RELEASE

1. Run infinite unconstrained planning in ERP (Frame + Gearbox)

2. Run finite and constrained planning (Wheels)

3. Review results in ERP

4. Review results in APO PP/DS

5. Consolidate and reconcile finite and infinite production plans

SAP ERP

SAP APO

PP/DS

Core Interface

CIF


On the fly aggregation

MATDOCMaterial Document

Master data without Stock aggregates

MARC MARD

Aggregates

MSTQ

MSTE

MSTB

MSSQ

MSSA

MSPR

MSLB

MSKU

MSKA

MKOL

MCHB

MSTQH

MSTEH

MSTBH

MSSQH

MSSAH

MSPRH

MSLBH

MSKUH

MSKAH

MKOLH

MCHBH

History Document

MARDH

MARCH

MKPF

MSEG

Inventory movements

Material Master

Master data with

Stock aggregates

MARC MARD

MARCH MARDH

Master

data

Transactional

data

26 aggregate

tables

Simpler

Data Model

Traditional disk-based ERP In-memory ERP

Simpler Data ModelInventory Management Example


Unified Functionality in the CoreExtended Warehouse Management

Integration steps required between EWM and ERP

1. Configuration of communication between ERP and EWM using qRFC

2. Definition of a warehouse in ERP and EWM

3. Integration of the warehouse with the organizational structure of ERP

4. Initial master data transfer from ERP to EWM

5. Creation and activation of a Core Interface (CIF) integration model

for the master data transfer from ERP to EWM

CURRENT FUNCTIONAL MODEL PLANNED IN 1610 RELEASE

Extended Warehouse Management

• Inventory Management Optimization (e.g. Slotting)

• Inbound Process Optimization (e.g. Deconsolidation)

• Outbound Process Optimization (e.g. Waves)

• Material Flow Control

• Yard Management (e.g. TU handling, DAS)

• Labor Management

• Value Added Services

• Kitting

• Cross Docking

• Warehouse Billing

Basic Warehouse Management

• Inventory Management

• Inbound Process

• Outbound Process

• Internal Warehouse Movements

• Physical Inventory

• Reporting

One System for all warehousing

SAP S/4HANA SUPPLY CHAIN

WITH EMBEDDED EWM

Extended Warehouse

Management

SUITE

PRODUCTS

Basic Warehouse

Management

SAP ERP

LE-WM SAP EWM

Core Interface CIF


Traditional System – Buyer & Supplier Collaboration Reinvented Business Processes with SAP S/4HANA

Business process viewEfficient Procurement

With SAP S/4HANA:

Full transparency of process status per PO & INV line item

Real-time updates of business process information

Increased process efficiency for Buyers and Suppliers

Short cycle times

Opening up business opportunities for the company’s debit / credit accounting

Data integrity of business information across systems

Direct exchange of business information

With traditional system:

Loose collaboration between suppliers and buyers

Many manual interfaces

Error-prone processes

Inefficient collaboration due to limited transparency

Long cycle times

Difficult to identify new business opportunities

Remittance Advice

Goods Receipt

Purchase Order Purchase Order

confirmation

Ship Notice

Invoice

Clearing of

open items

CC-Invoice

Invoice status

update

(Payment date)

Payment proposalAgree on Early

payment

Cycle Time Cycle Time

Process excellence

x Waiting Time

End DateStart Date

1Purchase

Order

Purchase Order

confirmation

Goods Receipt

InvoiceCC-Invoice

Remittance AdviceClearing of

open items

2

3

4

BUYER SUPPLIER

Traditional

Strategy

New

Strategy


SAP S/4HANA for Sourcing & Procurement FunctionOperational Procurement

» Leverage Catalog Buying in Self service requisitioning processes

» Monitor critical business events, purchasing spend and supplier performance in Procurement Overview Page

» Increase supplier relationship and performance by using Activity and Task Management

» Leverage Purchasing Category in real-time analytics to monitor the KPIs along business responsibilities

» Visualize planned spend versus actual spend per purchasing category

» New Fiori Apps for Sourcing and Contract Management: Manage Request for Quotation and Supplier Quotation

» Create Sourcing Request in SAP Ariba Sourcing out ofSAP S/4HANA

» Structure and merge material groups into the new business entity Purchasing Category

Functional Capabilities

User Experiences

Technical Capabilities

S/4HANA Logistics

Efficient Procurement


S/4HANA – Why now?

1Successful. More than 270 customers are live, over 1200 projects are running and more than 3200

licenses have been sold.

3Digital Core of any business. Complemented by SAP’s cloud and business network

solutions it supports end-to-end business processes for the digital age.

4Easy to adopt. System conversion, landscape transformation or greenfield approach – our customers

have the choice. Know-How is available both in the partner ecosystem and at SAP Digital Services. SAP supports

customer with dedicated Value Assurance Services and Implementation & Transition Services.

2Available for 21 Industries. 21 of 25 industries are there, remaining industries planned to be

available with release 1610, 11 Lines of Business, 63 countries and 38 languages. Roadmaps: www.sap.com/roadmaps

SAP S/4HANA is…

http://www.sap.com/roadmaps


Where can I find out more about SAP S/4HANA?

Join the Community

Solution Explorer

Top Questions and Answers How to get there S/4HANA Cookbook

Feature Scope GuideDiscover SAP S/4HANA S/4HANA Online help

Detailed SAP S/4HANA Road Maps

http://discover.sap.com/S4HANA

http://discover.sap.com/S4HANA

http://scn.sap.com/community/s4hana/

http://scn.sap.com/community/s4hana/

http://www.sap.com/bin/sapcom/en_us/downloadasset.2015-03-mar-02-23.sap-s-4hana-frequently-asked-questions-pdf.bypassReg.html

http://www.sap.com/bin/sapcom/en_us/downloadasset.2015-03-mar-02-23.sap-s-4hana-frequently-asked-questions-pdf.bypassReg.html

https://service.sap.com/~sapidb/012002523100006634812015E.pdf

https://service.sap.com/~sapidb/012002523100006634812015E.pdf

http://scn.sap.com/docs/DOC-65111

http://scn.sap.com/docs/DOC-65111

http://help.sap.com/s4hana

http://help.sap.com/s4hana

http://solutionexplorer.sap.com/

http://solutionexplorer.sap.com/

http://help.sap.com/s4hana_op_1511

http://help.sap.com/s4hana_op_1511

Stefan Batzdorf, S/4HANA Pre-Sales September, · PDF fileS/4HANA Enterprise Management Stefan...

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