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openSAPSAP S/4HANA Deep Dive
WEEK 2, UNIT 1
00:00:12 Hello and welcome to course week 2, Getting Started with SAP S/4HANA.
00:00:19 In the first week we provided insights into the motivation behind S/4HANA,
00:00:24 the business value, and the strategy.
00:00:27 In this week you will learn how to get started, how to test-drive the solution,
00:00:32 and more details about architecture and roadmap.
00:00:36 Okay, let us start with the Unit 1, Value Preposition Examples.
00:00:44 S/4HANA offers innovative features to allow you to realize innovations and transform
processes.
00:00:51 This is needed as we all live in the digital economy and we need to adopt fast.
00:00:57 As a start, we will pick 4 features
00:01:00 but I think they are some of the most significant ones.
00:01:05 Number 1, S/4HANA and speed: Speed does matter.
00:01:11 Ten times faster transactions and above 1,000 faster analytics
00:01:16 allows us and you, for example, to leverage event stream processing.
00:01:22 We can now enable a new process that includes, for example,
00:01:27 what-if simulations and embedded advanced algorithms on real-time data.
00:01:32 Second, S/4HANA and usability: And it is all about the end user.
00:01:39 Everyone knows that the user experience of mobile devices
00:01:42 is the de-facto expectation standard out there.
00:01:47 With S/4HANA, SAP breaks with the conventional transactional approach
00:01:52 and provides new generation user experience via SAP Fiori
00:01:57 and allows to have, for example, app-like configurable user experience,
00:02:03 Google-like search, predictive and simulation,
00:02:07 embedded social collaboration - and this on any device.
00:02:12 The third one is S/4HANA and simplicity
00:02:16 because the complexity needs to hide behind the system.
00:02:21 S/4HANA is fully built on the most advanced in-memory platform: SAP HANA.
00:02:27 The SAP HANA platform is the engine for real-time processes.
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00:02:32 It is the platform to accommodate the new software generation for the digital economy,
00:02:37 and S/4HANA has been dedicatedly architected for it.
00:02:42 With this we are able to provide unmatched simplification
00:02:46 for everyone to digitally transform his business,
00:02:50 and, of course, as well big advantages for IT.
00:02:54 So, let's look into some examples such as:
00:02:57 simplified system landscape - one system for transactions and analytics;
00:03:02 simplified user experience - consumer-grade ease of use,
00:03:07 personalization and simplified guided configuration;
00:03:11 simplified pre-packaged integration scenarios, and there is more.
00:03:17 And as point 4, S/4HANA and agility: As the transformation does not stop,
00:03:24 S/4HANA brings you flexibility in your digital transformation process.
00:03:29 So let me mention some: Accelerated upgrades of new features, fast -
00:03:35 in the cloud edition every quarter, in on prem, every 9 to 12 months,
00:03:40 simplified changes use, like configuration, and, of course, easy changes;
00:03:47 on-the-fly analytics - ask any question you have
00:03:52 without a need to have someone to pre-think;
00:03:55 a powerful cloud development platform as a service -
00:03:59 enabling rapid deployment of individual and next-generation applications
00:04:04 sized according to your business needs.
00:04:08 And these are just some examples. You will discover much more in this course.
00:04:14 So, let us look at an example to demonstrate you how S/4HANA can change processes
00:04:20 and how you can accelerate innovations and offer better services.
00:04:26 And so it goes: A digital store is the
00:04:29 typical minimum viable product for fast market entry.
00:04:34 Consumers, especially the young people, have great experiences in digital commerce
00:04:40 and expectations for the same. As an example:
00:04:44 A digital shopper experience with in-store navigation, easy ordering,
00:04:49 personalized coupons, and curated experience is the de-facto standard.
00:04:56 Unfortunately, business processes that have been built around long-running batch processes
00:05:01 are very limited and thus do not deliver the experience needed.
00:05:06 So you have only a limited number of variants.
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00:05:10 You have weekly or daily planning, fulfillment and delivery tact,
00:05:14 and low flexibility to order changes and responses to unplanned downtime,
00:05:19 supply problems; you get it.
00:05:23 So you need to have an end-to-end digitized experience.
00:05:28 Including, a digitized core is needed for consistent customer experience and agile execution.
00:05:36 What is the goal and the ultimate value?
00:05:40 Marketing in real time to the segment of one
00:05:44 based on individual customer activities on all channels
00:05:48 with individualized advertisements, discounts,
00:05:52 product configurations, product recommendations, and so forth.
00:05:57 Mass customization supported by real-time fulfillment monitoring,
00:06:02 processing of customer change requests, responses to unplanned downtimes,
00:06:08 responses to changed parts availability, just to mention a few.
00:06:13 So, at the end you and we will need to better deliver the entire value chain
00:06:19 based on the lot size of one, digitally enabled and fitting together.
00:06:26 From HANA to S/4HANA - let us take an example with our in-memory platform,
00:06:34 for which SAP S/4HANA has been architected to fully leverage the capabilities.
00:06:41 For half a decade it has been an ongoing discussion about the value of speed.
00:06:47 If you look at it from a velocity perspective
00:06:50 but frame the conversation within the existing environment,
00:06:54 you end up rating the solution in best case as an accelerator for business processes
00:07:00 with limited business impact because you have a bottom-line conversation.
00:07:06 But as soon as you understand the impact of a move out-of-the-box approach
00:07:11 and you re-imagine the fundamental design of business processes,
00:07:15 you are able to transform to new business models and improve the business outcome
massively.
00:07:22 To ensure a modelling of processes that can be changed from push to pull from a user.
00:07:28 These are key qualities and capabilities that S/4HANA is standing for.
00:07:34 Let us cluster them. 1, Increased efficiency:
00:07:40 We enable the redesign of business processes from push to pull.
00:07:44 Data preparation and predesigning questions is not required anymore in the enterprise of the
future.
00:07:51 Batch orientation was not directly related to the business processes
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00:07:57 and in the very moment a customer implements a solution based on this as a blueprint,
00:08:02 the system is built on old boundary conditions.
00:08:06 The new design allows to ask any question on the fly.
00:08:11 2, Increased effectiveness:
00:08:14 The simulation engine enables new scenarios and system behavior.
00:08:19 A rule-based and instantaneous decision support guides the user
00:08:23 with text mining capabilities, for example,
00:08:26 as well as the ability to embed structured and unstructured data into one business process
00:08:33 ensuring innovative business processes and business decisions.
00:08:38 3, Increased agility: Scattered information and data duplication
00:08:44 that create different versions of the truth are complicating decisions
00:08:50 and making it very difficult for enterprises to bring good ideas to market quickly and profitably.
00:08:57 So let us look into the digital levers in these three clusters
00:09:03 and how they contribute to raise efficiency.
00:09:07 There are many options if you are serious about digital transformation.
00:09:11 And at the end you will pick the ones that suit you best.
00:09:16 We start with number 1, Accelerated execution,
00:09:21 precisely, where we will leveraging increased processing speed to accelerate execution
00:09:27 from hours or days to seconds and minutes.
00:09:31 2, Automate process steps to increase the percentage of zero-touch orders
00:09:37 by reducing the data entry or re-entry, for example,
00:09:43 accepting orders directly from the client system or keyed in by a client via the web shop;
00:09:49 by using advanced rule engines with access to all ERP data to automate decisions.
00:09:57 3, Digital out-tasking: So an increased flexibility to out-task subprocesses
00:10:05 to the external digital micro-services, so someone provides a service you use.
00:10:12 4, Speed up signal to action of transactions:
00:10:18 Embed analytics of transaction data into the business process;
00:10:23 steer execution in real time;
00:10:26 deprecate, extract, transfer, load processes that relate delays.
00:10:32 Number 5, Speed up signal to action in workflows:
00:10:37 Eliminate the branch-outs for analysis and user input through embedded analytics.
00:10:44 Eliminate the branch-outs for manager approval using real-time rule engines to extend data
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sets.
00:10:53 Number 6, Raise process intelligence:
00:10:57 Increase the quality and resilience to external events
00:11:01 and cut costs by raising process intelligence.
00:11:06 Use clickstream, sensor, shop floor, geo, whatever functionality
00:11:10 that helps your data sources, just to name a few.
00:11:15 Process events in real time and predictive events with advanced algorithms.
00:11:22 Number 7, Increase process flexibility:
00:11:27 Allow users to define their own alerts, analyses and actions on the fly;
00:11:34 no IT intervention needed, no complex system change.
00:11:39 Leverage micro services, as mentioned before, rather than a custom solution approach.
00:11:45 8, Increase organizational agility:
00:11:49 Speed up the configuration of changes to organizational structures
00:11:54 and affected processes made possible by simplified data model without aggregates.
00:12:01 Number 9, Accelerate process innovation:
00:12:05 Speed up configuration of changes to organizational structures and, of course,
00:12:10 helping with your data processes not only to do those new things
00:12:16 but also change them on the fly.
00:12:20 So let us put all the above in context of concrete industry use cases:
00:12:26 The first one, digital transformation in industrial manufacturing.
00:12:31 In the digital economy you might want to leverage, for example, connected design.
00:12:37 Linking telemetry data with operational and design data
00:12:42 provides a complete new lifecycle visibility for improved design.
00:12:46 The business outcome: lower cost, higher quality.
00:12:51 Or let's look at connected manufacturing:
00:12:53 Move from batch to real-time manufacturing processes,
00:12:57 such as an ultra-fast MRP, to always meet the right demand.
00:13:03 Get real-time feeds via the Internet of Things sensors
00:13:07 to automate your operations and services.
00:13:11 So the business outcome there will be increased cost efficiency and asset utilization.
00:13:17 And, of course, serving the segment of one:
00:13:20 Better synchronize processes, data, and tasks
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00:13:25 across highly complex and intertwined manufacturing and channel value chains;
00:13:31 the transition from reactive to proactive
00:13:35 by detecting and analyzing patterns and root causes like never before;
00:13:42 improve the agility in response to new technologies
00:13:46 such as 3D printing, quickly adapting processes.
00:13:51 The business outcome: Higher revenues through faster time to market.
00:13:57 Another one would be the optimized assortment:
00:14:01 Quickly determine best practice and promotions despite high data volumes;
00:14:08 optimize assortments by understanding the contribution of each single stock-keeping unit.
00:14:15 So, the business outcome will be very clearly the reduction
00:14:18 and the reduced revenue loss due to stock outs.
00:14:23 Profitability rises because, of course, you can now react quickly.
00:14:28 Or let us take contextual marketing:
00:14:31 If you really want to target a segment of one on the fly,
00:14:36 you need that real-time contextual information.
00:14:39 You need to gain insights into customer sentiments, hidden trends, and motivations.
00:14:44 And then, your business outcome will be increased revenue from cross-sell and up-sell.
00:14:52 Let's look at personalized engagement:
00:14:54 Personalize one-to-one offers based on real-time recommendation engine
00:15:00 which absolutely influences the behavior with real-time access to all buying preferences.
00:15:06 Very clearly, your business outcome will be a reduced churn
00:15:11 while increasing the loyalty of your customers.
00:15:15 Let's look at personalized driving experience:
00:15:19 Personalized services and offers to people while and as they are driving,
00:15:24 like fueling or parking, based on real-time contextual information;
00:15:30 perform predictive analyses to discover hidden trends
00:15:33 and gain insights into driver behavior and preferences.
00:15:37 The business outcome, again clear:
00:15:39 Improved customer service and loyalty for optimizing the way how you interact.
00:15:47 Let's look at optimized manufacturing:
00:15:50 Move from batch to real time to always meet demand;
00:15:55 get real-time feeds via Internet of Things to synchronize the assembly line
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00:16:00 with your business processes and the business outcome.
00:16:04 And that will be increased cost efficiency and asset utilization.
00:16:10 Let's look at predictive maintenance:
00:16:12 Get sensor data to instantly assess the condition of your equipment
00:16:18 which, by the way, you don't longer sell as a product but you have a service contract.
00:16:23 Predict breakdowns, so proactively perform maintenance
00:16:27 because that's the service you are going to be paid for.
00:16:30 And here, very clearly, the business outcome is
00:16:33 lower maintenance and service cost and, of course, an improved service.
00:16:38 Let us look at optimized manufacturing:
00:16:42 And again, it is the move from batch to real time that you need,
00:16:47 and you need to get the real-time inventory feeds via connected manufacturing operations.
00:16:54 It is a clear business outcome that you want
00:16:58 because you want increased cost efficiency there.
00:17:02 And the assets that you have, you want to utilize them better.
00:17:05 So, here we have some examples, and especially,
00:17:09 if we are going to predict, what we can do with S/4HANA,
00:17:14 it is very important to predict where are breakdowns,
00:17:19 where we can take some outcomes to lower all your maintenance and service costs that you
have
00:17:24 because that business model transformation is very clearly
00:17:28 from buying to leasing to service subscription.
00:17:32 You want to achieve granular profitability analysis and billing capability.
00:17:37 You want higher revenues through increased market penetration.
00:17:44 So here are the key takeaways about SAP S/4HANA:
00:17:49 It is the business foundation to lead into the digital transformation and the digital economy.
00:17:56 It is very clearly designed to drive that digital transformation.
00:18:00 And of course, it is unique in the market today,
00:18:03 and that's why this course will help you how to get started.
00:18:08 This concludes Week 2, Unit 1: Value Proposition Examples.
00:18:13 See you in the next unit where my colleague Stefan Kaetker will provide insights
00:18:18 about Guided Configuration and Onboarding.
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00:02:25 And this is only a few clicks away for you today. Try it out today.
00:02:28 The next phase will be the Prepare phase
00:02:31 where you will go through the different business scenarios that are implemented in S/4HANA,
00:02:36 and have a look at them, do a deep dive, and figure out, okay,
00:02:39 and how far do these business scenarios directly fit the needs of your business
00:02:43 and where do your needs certain tweaks and changes during the implementation project.
00:02:47 We call this a fit-gap analysis. This is when you start a new implementation with S/4HANA, for
example, in the cloud.
00:02:54 Also, if you want to migrate your existing Business Suite application into an S/4HANA instance,
00:03:01 we will do some migration planning during the Prepare phase,
00:03:04 and there are ready-made productized services available
00:03:07 to do the planning together with you and also to do the following migration
00:03:12 where we try to keep the business processes from the old installation
00:03:17 and move them over into the S/4HANA.
00:03:20 This is then followed by a Realize phase
00:03:23 where we have invested into additional self-service configuration apps that allow you very
easily
00:03:30 to do the changes on top of the preconfigured business processes that we deliver with
S/4HANA.
00:03:36 So, things like introducing new org structure entities, like new plants, new shipping parts
00:03:41 and stuff like that, is now very, very easy with these Fiori-based configuration applications.
00:03:46 And, of course, we also add tools and services to perform the migration
00:03:51 and the necessary integration steps during the Realize phase.
00:03:55 This is then followed by a Deploy phase where the solution is validated and actually tested
00:04:00 whether all the business scenarios work as designed in the environment of the customer
00:04:06 with the new configurations and with the uploaded master and transactional data.
00:04:11 And also the topic of end user enablement is addressed where we'd make sure that every kind
of information
00:04:17 that an end user or a key user who is helping during the implementation process will need
00:04:24 is available where it is needed - right in the application.
00:04:28 So we've embedded all the knowledge transfer materials,
00:04:31 all the learning materials directly into the application itself.
00:04:35 And then we are ready to go-live, and then we are transitioning into the Run phase.
00:04:40 And there, as I said initially also, we support also the constant update and upgrade processes
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00:04:48 with our guided configuration and onboarding approach as a whole.
00:04:52 And this is independent of the deployment model that you choose.
00:04:57 If you go in the cloud or if you go on premise, the guided configuration and onboarding
approach
00:05:01 helps you in all the deployment models that are foreseen for S/4HANA.
00:05:06 So with that overview and with understanding the value of the guided configuration and
onboarding approach,
00:05:12 let's go one step deeper and see how we achieve this.
00:05:17 The key element in there is that we have also defined, for the new S/4HANA product,
00:05:25 a new way or a new framework on how to implement and onboard into S/4HANA.
00:05:30 That is called SAP Activate and consists of three key pillars.
00:05:34 The first one are the SAP Best Practices, which means that we deliver the solution,
00:05:40 not only the software but also ready-to-run, S/4HANA-optimized preconfigured business
processes.
00:05:47 So once you get hands on your S/4HANA system, you'll get already running business
processes
00:05:55 that are optimized for S/4HANA with sample data in a sample company.
00:05:58 So it's the same, as I mentioned initially, with the trial: You also get this as starting point for
your implementation.
00:06:04 If you want to migrate an existing solution, then, also mentioned before,
00:06:08 we have productized migration services available.
00:06:11 That means we have the best practices for a migration from a Business Suite system
00:06:14 into an S/4HANA system put into the Best Practices.
00:06:20 And these approaches are described in detail,
00:06:23 so there is an easy-to-go path for your Business Suite implementation into S/4HANA.
00:06:28 And, of course, with the Best Practices, we are also addressing specific integration and
extensibility needs
00:06:35 with specific Best Practice packages for integration, for example, integration to our other cloudsolutions
00:06:41 like SuccessFactors Employee Central or the Ariba Network,
00:06:44 and also Best Practices on how to extend the SAP S/4HANA system.
00:06:49 So that is all around the Best Practices that we deliver together with the product.
00:06:54 At the release state of the product, Best Practices are readily available as an integral part of
the product.
00:07:01 The next pillar is the guided configuration. This means we have built specific tools in Fiori,
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00:07:09 specific Fiori UIs to perform the assisted implementation for the initial implementation
00:07:14 but also for the ongoing adoption of the innovation.
00:07:17 So we will see in a short demo, later in this unit, you will see how this works
00:07:23 and how easy it is to adopt the configuration of S/4HANA to the specific needs of a company.
00:07:30 And because it's made so easy and we lifted basically the tasks to answering the businessquestion
00:07:36 instead of dealing with very cumbersome technical settings in the system,
00:07:41 we empower business and IT to work together very efficiently on the question
00:07:46 how should the new system be set up and how can this be brought into the system.
00:07:51 We can achieve that with the tools because we put a new paradigm into developing our tools.
00:07:57 We make them content-aware, and we also make them aware of the history that has been
done before.
00:08:03 This enables a total content lifecycle management behind it and that we can better manage the
configuration content
00:08:09 and the transition of this content from the quality systems into the productive systems and so
on.
00:08:15 And basically the tools are built in order to change and enhance
00:08:19 the already existing preconfiguration content in the system and by that we can, for example,
00:08:23 very easily add additional organizational entities like new plants or even new subsidiaries
00:08:31 into the system and enable them directly into the preconfigured processes.
00:08:35 So it's not only creating a new instance like a new plant,
00:08:38 but this plant will then be automatically made available
00:08:42 for all the different business processes that are in scope.
00:08:45 So, this gives you a very, very fast jumpstart into the implementation
00:08:50 and this leads then, at the end, to the reduced implementation times
00:08:53 and the reduced time to value that I talked about initially.
00:08:58 The third pillar: Last but not least, we have developed a specific methodology to implementS/4HANA.
00:09:05 We harmonized the different methodologies that we embrace right now, so it's the successor
of ASAP.
00:09:10 And the SAP launch methodology for the cloud solutions is now the SAP Activate
methodology.
00:09:17 And there, in that methodology, we describe, in a very tangible way,
00:09:22 the different steps in an implementation project:
00:09:24 What needs to be done, what is the different order,
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00:09:27 what are the different tasks of the different roles involved in the project,
00:09:30 what does the project manager have to do,
00:09:32 what is the task of specific consultants and subject matter experts in an implementation
project.
00:09:39 So the whole orchestration on how you do efficiently an S/4HANA implementation.
00:09:44 And, of course, because this is a part of the overall Activate concept,
00:09:48 we have put Best Practices in the center of this methodology so it's readily using Best
Practices.
00:09:54 And it's open for partners so we do not hide this somewhere, we give it out to partners
00:09:59 to also enable our partners to do S/4HANA implementation projects very successfully and
efficiently.
00:10:05 And of course, all the different SAP engagement models
00:10:09 like the Premium Engagement approach from our AGS colleagues
00:10:15 is embedded into the methodology.
00:10:19 So now, I would like to deep-dive into all these three pillars.
00:10:25 But before we do that it's important to understand
00:10:28 that the value of SAP Activate itself is not just the sum of these three pieces.
00:10:33 The integration of these three pieces really brings an additional value,
00:10:37 and then the Activate is more than just the sum of these three pieces.
00:10:42 For example, you can see that, because we integrate the tools with the content
00:10:46 and make the tools content-aware,
00:10:48 we can get into another level of simplicity
00:10:51 in providing SAP S/4HANA implementations.
00:10:56 So now, let's go into the first topic, the Best Practices first, a little bit deeper.
00:11:02 This is an overview about the different Best Practices that we make available with S/4HANA.
00:11:08 So the key piece is the Best Practices for foundation, or what we call the baseline,
00:11:14 which contains the already mentioned ready-to-run business processes
00:11:19 that we deliver directly together with the product. This is the core.
00:11:23 And this means that the product has already business processes ready to run once you install
it.
00:11:28 Now we complement this with additional Best Practice packages, for example, around the user
interface.
00:11:33 So in these Best Practice packages, it is described how you add additional Fiori UIs, for
example,
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00:11:39 to the already existing user interface in the SAP S/4HANA system.
00:11:46 For example, if you have very specific needs or very specific roles in your company,
00:11:50 here is the baseline on how to build additional Fiori UIs.
00:11:56 Here is a key approach, the standard Best Practice approach how to do that very effectively.
00:12:00 The same applies to the operational reporting: If you need additional reports based onS/4HANA,
00:12:05 the Best Practices for operational reporting describe how this can be done.
00:12:11 We integrate with SuccessFactors, Ariba, hybris,
00:12:14 so basically the other SAP cloud solutions via Best Practices for SAP S/4HANA Integration.
00:12:19 And then we have also some additions, like cash management,
00:12:22 that come on top of the basic configuration of the S/4HANA system.
00:12:27 And if you want to extend the system more, like additional integrations, more complex FioriUIs,
00:12:34 the SAP Best Practices for Extensibility describe the approach and how to do that.
00:12:39 So this is very handy for new implementations as well as for migration implementations.
00:12:45 Specifically for migrations, the SAP Best Practices for Migration are very important
00:12:50 because this is the key package that describes how do you go
00:12:54 from an existing Business Suite implementation into an S/4HANA implementation,
00:12:58 how is your road from A to B and what are the Best Practices,
00:13:02 what are the approaches that you need to do,
00:13:04 what are the tools that you should use in order to do that very smoothly.
00:13:09 So, this wraps up all the content that we have in the Best Practices.
00:13:14 There is a huge wealth of experience in there from multiple years
00:13:19 that helps you to do your project successfully.
00:13:23 The next topic is the guided configuration and onboarding tools that we have available.
00:13:29 Of course, we have mentioned this before,
00:13:32 the ready-to-run best practice processes provide the basis of these tools.
00:13:36 And on top of that, we provide a toolkit for assisted implementation
00:13:40 which allows you to configure your solution
00:13:43 but also gives you additional access to a testing framework in that.
00:13:48 Because we do not only deliver Best Practice preconfigured business processes in this
system,
00:13:55 but also the related test scripts and a test engine is embedded into the product.
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00:14:02 And this can be used also as part of the S/4HANA guided configuration application
00:14:06 that we ship together with the product.
00:14:08 It also contains tools to do data migration that you can connect to a source system
00:14:17 and then take the data out and map it into the S/4 data structures
00:14:22 and load your transactional and master data objects into the system.
00:14:30 If the standard configuration that we provide and the standard business processes
00:14:34 do not meet the configuration flexibility needs of your project,
00:14:39 then we also have the ability to break out of this easy-to-use concept
00:14:44 into the so-called expert configuration where we have full configuration flexibility
00:14:49 that you are familiar with if you know the Business Suite,
00:14:54 together with the content lifecycle management features that we have introduced with
S/4HANA.
00:14:59 Especially in the Enterprise Edition of the cloud solution and on premise,
00:15:03 the full configuration flexibility remains available
00:15:07 in addition to the easy-to-use tools for straight-forward configuration cases.
00:15:12 Now, enough talk, let's have a look into the system itself.
00:15:16 I will now show you the guided configuration application here, real quick.
00:15:25 So here you can see this. This is a Fiori application that is shipped together with the product.
00:15:30 So there is nothing that you have to install at a side as a specific tool, it comes as an integralpart of the product.
00:15:36 And the first thing that I would like to show you is that we can get a solution summary out of
this.
00:15:40 And we can see which kind of processes are now in this system preconfigured. So here you
can see it.
00:15:45 What we see here is the Project Services Edition of the cloud version of SAP S/4HANA.
00:15:56 And here you can see the different business processes, like Accounts Payable, Accounts
Receivable.
00:16:01 And also here the specific project- or industries-specific processes,
00:16:06 like Sales Order Processing for Project Based Services.
00:16:09 So we can see a list of the already preconfigured and implemented processes in that system.
00:16:14 Now, the next step would be that I want to change some of the configuration settings.
00:16:18 For example, I would like to change the approvals threshold of a purchase order that I raise.
00:16:23 So I can search for approval very easily.
00:16:27 I get the list of configuration apps that have something to do with approval.
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00:16:31 I pick the Purchase Order Approval application, start it,
00:16:36 and I see here the different purchasing groups and their approval values.
00:16:42 And I think, 1000 Dollars, okay, that's maybe a little bit high for purchases group 001.
00:16:46 I want to change it to 500, so I go in here and just go 500, save it.
00:16:53 Very, very easily done, to change the configuration values.
00:16:57 And now, they are changed directly in the configuration tables.
00:17:02 So what this enables is an approach that we call Tune a little, try a little.
00:17:08 So we can change the configuration a little bit. Then we can go back into the business UIs
00:17:13 and test out the effect that this configuration change had.
00:17:18 This is the beauty of running this self-service configuration applications
00:17:23 on top of an already running preconfigured and fully running system.
00:17:27 There we can use this kind of approach where we can see very easily
00:17:31 the effect of the configuration changes that we have done.
00:17:38 Okay, and then you can see here also that we have the availability to test the processes
00:17:42 with a test workbench or, let me jump into this one, the data migration workbench
00:17:49 where we now can connect to an existing source system and then,
00:17:53 based on the scope of the business processes that we have in the system,
00:17:58 we automatically get out the transactional and master data objects
00:18:03 that are required to run the specific business processes.
00:18:08 If you want to have a more detailed demo of all the different features
00:18:13 that we have in the S/4HANA Guided Configuration,
00:18:16 I recommend to look into the supplementary material to this course.
00:18:20 There is a specific S/4HANA Guided Configuration demo available that you can have a look at.
00:18:26 So with that, let's go back to our presentation and to the next pillar of SAP Activate,
00:18:38 which is the last pillar, the third pillar, the methodology.
00:18:42 With the methodology we provide a framework
00:18:45 that guides project managers and project teams through the implementation project.
00:18:52 It structures the implementation process into different phases like Prepare, Explore, Realize,
and Deploy,
00:18:59 and gives specific help how these different phases should be performed.
00:19:07 So it gives you specific guidance and materials on how to reach the different deliverables
00:19:12 that are required to do this implementation phase.
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00:19:16 And here I would also like to show you how this looks like
00:19:18 instead of theoretically talking about these topics.
00:19:23 And here we look into the SAP Activate methodology, specifically for S/4HANA.
00:19:28 So we see the different phases here from Prepare, Explore, Realize to Deploy,
00:19:34 these different implementation phases that you have to go through
00:19:37 and the different high-level steps in here that need to be done.
00:19:41 So if we now go into the Explore phase, then you will see here
00:19:45 that in this phase we are listing the different key deliverables
00:19:48 that have to be achieved during that phase.
00:19:51 If we now click on one of these deliverables like the solution validation and fit-gap analysis,
00:19:56 we will get into a description of this particular deliverable,
00:19:59 what has to be done, how this should be done.
00:20:03 In this case here, the validation of SAP solution, it tells me, okay, you do it via a demo.
00:20:08 You go through business process by business process, test is through,
00:20:12 and then you note down the gaps of the pre-implemented business process with the needs of
the business.
00:20:18 And then it is logged somewhere. And there are templates available in that methodology,
00:20:22 for example, to record the results of such a fit-gap analysis.
00:20:26 So, a lot of material that project teams need in order to perform the projects is there,
00:20:30 and a lot guidance is given, and a lot of structure is given to the teams.
00:20:35 So let's look into one of these so-called accelerators that are listed here.
00:20:39 These are those documents, PowerPoints that help the project teams to perform their job.
00:20:45 So for example, if you want to do such a fit-gap analysis,
00:20:49 we need to run a workshop with the customer in order to go through this.
00:20:54 And what we have here is a sample presentation that shows the different steps
00:21:00 and what you have to go through with the customer.
00:21:03 So these kind of materials, presentations, for example, can be used right away,
00:21:07 tailored to the specific needs of the project and then used.
00:21:10 So you do not have to start from scratch with all of these different tasks.
00:21:14 And this is available through all of the different phases from discovery to go-live,
00:21:19 and even beyond for upgrades and upgrade projects in the SAP Activate methodology.
00:21:25 So with that let's go back to our slides again and finally to the summary.
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00:21:35 Okay, what did we talk about?
00:21:38 What have we learned now in the Guided Configuration and Onboarding unit today?
00:21:43 We have a comprehensive framework called SAP Activate available
00:21:47 to implement SAP S/4HANA, be it in the cloud or on premise.
00:21:52 With that approach and with that guidance in the systems,
00:21:56 with the SAP Best Practices that give you predefined business processes in the system
00:22:01 and predefined procedures on how to do migration and integration, for example.
00:22:05 With the guided configuration tools that give you a powerful toolset
00:22:10 and easy-to-use toolset at hand to do the changes that you need to do
00:22:14 on top of the preconfigured business processes to tailor it to your specific business,
00:22:20 and the methodology that gives you everything you need to very efficiently run your project.
00:22:25 This all together gives you the basis for reduced time to value,
00:22:31 for reduced total cost of ownership
00:22:33 for the initial implementation as well as for the ongoing adaption of innovation.
00:22:39 And with that I would like to conclude now this section
00:22:44 about Guided Configuration and Onboarding.
00:22:47 Thanks a lot for your attention. In the next unit, you will meet Rudolf Hois again.
00:22:52 He will discuss the Architecture, Editions, & Landscape of SAP S/4HANA with you.
00:22:56 Thank you very much and have fun.
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WEEK 2, UNIT 3
00:00:12 Hello and welcome to Week 2, Unit 3.
00:00:15 Stefan Kaetker discussed Guided Configuration and Onboarding in the last unit.
00:00:18 And this unit is now about Architecture, Editions, & Landscape.
00:00:22 It is about what is really new in S/4HANA.
00:00:25 S/4HANA is the next generation business application that we have.
00:00:29 And as such it's important to understand what really makes S/4 S/4 compared to the traditional
world.
00:00:36 On the one hand side, yes, we also will enable Internet of Things scenarios,
00:00:40 we are connected to business networks and social networks, and focusing on people, devices
and big data
00:00:46 as a consumption and a provisioning of information into the application.
00:00:51 But then, again, it's really important to understand the novelties and the innovation
00:00:56 that we do to the application that differentiates it.
00:01:00 First of all, we also - as is well-known by now - have it as a cloud and an on-premise
deployment.
00:01:08 Now, for you it's important then to understand
00:01:10 that we provide actually those capabilities out of one code line.
00:01:14 And the importance of that is that, based on that, we are actually staying semantically intact
00:01:19 and have a very good integration between the systems possible.
00:01:23 But from an execution perspective then also, we can use the shared libraries,
00:01:28 we have the same cloud qualities which then also have effect on the way
00:01:31 you will operate a system on-premise.
00:01:34 We have common simplifications and can differentiate the scope via configuration.
00:01:39 So that actually gives us at SAP an edge in terms of innovation:
00:01:43 How fast can we provide new capabilities to the cloud,
00:01:47 while the cloud capabilities that we actually expose
00:01:50 are largely driven by the need in the market.
00:01:53 So not every solution today is one that is consumed at large.
00:01:57 And on the other hand side there are also some solutions
00:02:00 that do not really cater for a cloud deployment.
00:02:03 It may be that those are so differentiating that customers will have to extend them to their
needs.
00:02:09 On the other hand side it may as well be that the cloud deployment actually
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00:02:13 will not be consumed at this point in time
00:02:17 as maybe HCM is today already state of the art
00:02:20 while a logistics process like a warehouse is at this point not really a choice customers do at
large.
00:02:27 Now on premise, obviously, as we have one code line, this is the simplified world.
00:02:32 But then we also use some existing code from the traditional world
00:02:36 as a landing scope as it is depicted here.
00:02:39 And landing scope basically denotes that by this we enlarge the functional capabilities,
00:02:43 the coverage of the system from the get-go such that you can migrate
00:02:47 or you can upgrade from an existing system, on-premise ERP,
00:02:53 into the S/4 world without losing scope in the first place.
00:02:59 What are the things that we do different compared to the traditional world?
00:03:03 What are the things in focus in the innovation that we are providing?
00:03:07 First and foremost, business process innovation: And here it's about getting ready for the
future.
00:03:12 So the business process innovation comes in two flavors if you wish:
00:03:15 One is actually the future, new business processes based on digitization,
00:03:20 could be the lot size of one,
00:03:22 it could be selling through the end consumer rather than a wholeseller.
00:03:26 So all these new business processes
00:03:28 where you also use digital information out of sensors,
00:03:31 or what have you, those are supported and in focus.
00:03:35 Second, it's also a re-do, if you wish, from the existing business processes
00:03:40 that are loaded with performance workarounds like data clerks or like batch runs
00:03:46 and data preparation steps or replications.
00:03:50 So, those things are taken out of the business processes,
00:03:53 which will bring a lot of value to the customers.
00:03:56 It's all focusing around the simple data model.
00:03:59 And in this session I don't talk at large about omitting the aggregates and indices
00:04:05 because this is discussed so many times and I do think
00:04:08 everyone has by now understood that this is reducing the data volumes.
00:04:12 However, we do even more things and I'll talk about that in a moment.
00:04:16 We continue to combine OLAP and OLTP, so transactional and analytical processes,
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00:04:21 and so we try for better decisions and instant decisions
00:04:24 which in a sense is then embedded analytics in transactions
00:04:28 or inside transaction scenarios in the business processes.
00:04:31 So it's a bases of how we reshape the business processes.
00:04:33 We also focus on the user experience because if we didn't do that we would shim short.
00:04:38 It is important for SAP to overcome the traditional way of building UIs.
00:04:42 And then, as it's one code line we're implementing cloud qualities.
00:04:46 And these actually ripple into on premise in the way that lifecycle aspects are covered.
00:04:51 Cloud model for an application is all about efficiency and lifecycle aspects.
00:04:56 And yes, if we build cloud qualities in the application out of one code line, those will be
available on premise.
00:05:01 And if we adhere to rules, then it will also ripple into the on-premise world.
00:05:05 I'll talk you through that also in a moment.
00:05:08 In addition, we focus on integrating our cloud solutions,
00:05:11 SuccessFactors and Ariba, better than we ever had.
00:05:14 So this is becoming even closer to the S/4 world.
00:05:18 But bringing all that innovation without focusing on the migration experience
00:05:22 would be, again, hindering adoption. So we focus on migratability:
00:05:26 How do we achieve a roadmap for an existing customer landscape to move into S/4?
00:05:31 And last but not least, replacement. This is where we leave things behind that would limit
innovation.
00:05:37 Now, you have to understand that, actually, SAP is in a good position to drive innovation
00:05:42 as we own the total stack: We have the application layer, we have that database layer,
00:05:46 we have the language and also the technology layer in between.
00:05:49 And at this point in time we're shaping, if you wish, the demarcation line
00:05:53 which has to happen there. So if we need a new capability from the database,
00:05:57 we can ask the language to provide an interface to connect both capabilities
00:06:02 on application level and on the database level.
00:06:06 And as such we are driving innovation in the whole landscape.
00:06:09 Now, if we do have old legacy things that would block this innovation,
00:06:13 then we would shim short because in the end it's about innovating for the future
00:06:17 and not only for the sake of keeping everything that we ever had.
00:06:21 So this is where we then replace things, and we do replace only things
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00:06:25 where we have alternatives of providing the same capabilities.
00:06:29 So in a sense, you can do the very same things, and sometimes there then are
00:06:33 legacy ways of achieving that, that will not be supported in the new world.
00:06:40 Now, focusing on the data model changes that we're doing.
00:06:43 So this example here is the ACDOCA table which is available since Simple Finance 2.0.
00:06:50 And what this actually is, it is a denormalized data model.
00:06:54 If you look at the depiction here, it's a combination of 5 previous tables:
00:06:58 General Ledger, Profitability, Management Accounting, Asset Accounting, and Material
Ledger.
00:07:03 And it brings it all into one. Now, this is rather surprising, right?
00:07:09 Because since the eighties or seventies even, data model design was all about normalization.
00:07:15 It was kind of a reflex coming out of your spine rather than a thought
00:07:19 because we all were trained so much of not duplicating data or reducing the data footprint.
00:07:25 And on the downside of that design was actually that incurred a performance loss
00:07:30 because we introduced unions and joins. To avoid those unions and joins
00:07:33 we even duplicated sometimes data where a field is then repeated in an item level
00:07:37 or in another table because it avoids then joins that we have to do.
00:07:42 And then we also came up actually with aggregates and index tables to overcome,
00:07:47 again, the performance problem of joining and unifying at large those individual tables.
00:07:52 So the driving paradigm was saving storage,
00:07:56 which was a complication at those times which is overcome by now.
00:08:01 And now you have to understand that as HANA is a columnar database, it compresses
extremely well.
00:08:07 A column that is empty is compressed to almost zero,
00:08:10 a column with very repetitive values is compressed very large.
00:08:14 And by that effect, we can actually go to denormalize the data model.
00:08:18 And by that we gain dramatic performance because we don't join and union,
00:08:22 we can do multidimensional reporting out of this one table.
00:08:26 We get away from a lot of complexity in coding, updating those replicated data,
00:08:30 updating aggregates and indices, so we simplified that.
00:08:34 And our application becomes more atomic-innate, if you wish.
00:08:37 So the interlinkage goes down, which is less complexity, higher quality, and more stability.
00:08:42 So, the data modelling design in a columnar-based world can be completely different.
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00:08:50 But data model changes?
00:08:52 Everyone who has ever developed immediately would react that,
00:09:54 well, what does that mean to my code?
00:09:56 Because the code depends at large on the data model design.
00:09:00 Now, here we have the topic of migrateabilty. We had a colleague with a great idea.
00:09:05 He came up with the concept of compatibility views.
00:09:08 Now, these compatibility views, in essence, are a HANA technology, if you wish,
00:09:14 which looks identical to the previous aggregate or index tables
00:09:17 or also to the previous document tables like the material ledger.
00:09:22 And they also have the very same field.
00:09:24 Now, a program comes along, and in the traditional world it would just fetch the value
00:09:27 out of the aggregate, index tables or old structures.
00:09:31 Now, instead of doing that, in S/4 a compatibility view is invoked,
00:09:35 a view that more or less calculates on the fly the very same result.
00:09:38 And for the program, it's absolutely irrelevant whether the value was just read
00:09:42 or whether it was calculated for the purpose on the fly and then you process further.
00:09:47 And with that technology we are actually able to bring a lot of capabilities along with us.
00:09:54 So it's good for SAP because, as a I talked before about landing scopes,
00:09:58 so we can use old scopes to augment the capabilities of S/4 in the existing data model,
00:10:04 but it's also good for custom code or partner code.
00:10:08 So this is the basis why we can upgrade a system or not upgrade as such
00:10:13 but give you an upgrade like experienced by moving to S/4HANA.
00:10:17 And then we have that in the cloud and on premise with the same semantic,
00:10:21 which will keep your company integrated as you adopt S/4HANA.
00:10:25 Normally, if you would go for desperate cloud decisions,
00:10:30 this integration would violate your central IT
00:10:33 and the achievements that you have done over the years.
00:10:36 But with the ability of having S/4HANA in the cloud and on premise,
00:10:40 you can really choose and pick whatever is suitable for which part of your business.
00:10:47 The cloud qualities underneath that are actually important in terms of how the lifecycle aspects
work.
00:10:52 So the cloud is all about automating operations,
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00:10:56 and we achieve that, a), by simplifying the configuration,
00:10:59 and those simplified configuration concepts will be available on-premise.
00:11:02 And it will also be able to be used as a starting point for your implementations
00:11:06 where you may then extend the configuration that is beyond what is available in the cloud,
00:11:11 however, the starting point is better and improved.
00:11:14 We do have an extension concept that is lifecycle optimized.
00:11:17 And the session about extension concepts will go into details there.
00:11:21 But you can also apply those as guideline on-premise and if you do so,
00:11:25 then also your lifecycle aspects on premise will go down in terms of cost because it's
optimized.
00:11:30 So the way the extension works is optimized for run-time aspects.
00:11:35 We invest in automation of the lifecycle management which, again,
00:11:38 is available as part of the S/4 on-premise if you adhere to the guidelines.
00:11:44 If you don't, if you still do the old way,
00:11:47 then those tools may not have the same coverage for you.
00:11:52 However, you will learn how to adopt those standards on-premise for the lifecycle aspects.
00:11:59 Principle of one is an investment protection on-premise because in the cloud
00:12:02 we will not go and provide you so many different capabilities for the very same thing
00:12:06 and the choices that we do in the cloud are those
00:12:09 that have the highest investment of SAP into the future so this is an investment protection for
you.
00:12:16 We will also invest into automated test capabilities because in the cloud
00:12:20 it's impossible to depend in upgrade cycles on customers' testing at specific points in time.
00:12:28 Again, those toolings will be made available on-premise
00:12:31 where you then can apply them for new developments that you do.
00:12:35 And the cloud first delivery that we're doing will actually provide well-proven innovation
00:12:39 and change the way that, you know, how we do ramp-up and those things
00:12:43 because most things will have been in productive use by many customers
00:12:48 before they even touch an on-premise system which, in essence, changes how fast we are in
innovation.
00:12:54 In terms of combining analytical and transactional processing,
00:12:57 we continue what we have started in Suite on HANA where we provided the virtual data model.
00:13:04 And the virtual data model is an abstraction of the transactional data model,
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00:13:08 logically, into an analytical data model which is converted on a logical level
00:13:14 and then via SQL executed on the fly whenever you do reporting.
00:13:18 And those virtual data models, they will be available in different ways for consumption:
00:13:24 A) It will be available through generic SAP BI clients
00:13:27 like Analysis Office or the Design Studio or SAP Lumira,
00:13:32 which is a low-touch way of providing UIs which are,
00:13:35 you know, very much list- and pixel-perfect reports.
00:13:39 However, you will also want to consume those jointly with transactional insights.
00:13:42 So we talk about insight-to-action applications like we've done with the Smart Business
Cockpit.
00:13:48 You may have seen the MRP Cockpit or the Sales Order Fulfillment Cockpit
00:13:52 that show how we do that at SAP.
00:13:54 It's also ready for you to do your own scenarios out of that nature.
00:13:58 So it's also then a basis for these kind of developments.
00:14:01 And then, also, we come up with fact sheets
00:14:04 where we actually use the search engine of HANA in the background a,
00:14:07 going into a, if you wish, finding-based business process rather than searching-based.
00:14:14 And those innovations will be made available in a new user experience, namely Fiori.
00:14:20 And important, beyond that is HTML5 and that it is, you know,
00:14:24 as it's are a browser based solution, able to run on mobile and so on.
00:14:28 There is a key conceptional change that is important to us
00:14:31 because in the traditional world we were all focused on transactions.
00:14:34 And a transactional perspective gave you then, you know, one transaction
00:14:38 where you could cover all capabilities for each role in each industry globally,
00:14:42 which is a completeness of scope but it's also more difficult to learn
00:14:46 and understand which are the pieces that you would apply.
00:14:49 And Fiori goes into a role-based design where we say, if you access a business object,
00:14:54 I will give you a screen that is actually of the complexity, of the interaction you're doing.
00:14:59 And by that it's more or less self-explanatory and easy to learn.
00:15:03 Now, talking about easy to learn gives me a hint towards talking about
00:15:07 that in your helpdesk you may actually find
00:15:10 that quite a substantial amount of time is spent into wrong usage of the system.
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00:15:15 I talked to a customer who said this is 30% of their helpdesk on first-level support.
00:15:20 Now Fiori will change that. With being role based, those errors will go down.
00:15:24 So this is a conceptional change that we do at large.
00:15:28 And this then will actually change the way that users will consume the system.
00:15:33 Beyond that Fiori is even more, and in particular, it is also the very first UI technology at large
00:15:40 that is implemented at large at SAP where we have a forced separation
00:15:45 between the UI layer and the application layer.
00:15:48 So we have the OData services that expose the application towards the UI layer,
00:15:54 and Fiori is then the consumption layer on top of that.
00:15:57 Now, this obviously changes the way how you can actually go and also build your own UIs.
00:16:02 Well, it's then about that over time we will have some OData services
00:16:07 that are released for this usage. Or we will have maybe generation capabilities
00:16:11 exposing new OData services against the underlying technology, exposing you the OData
service.
00:16:16 So this really opens up a new way of how users can extend our applications going forward.
00:16:22 And the traditional way of batch input - that may no longer be required as, you know,
00:16:28 batch input in the first place is not a very fast way of accessing our system.
00:16:31 And it's also not a real API layer, right.
00:16:34 So it was just usage for maybe something that you may have wanted to achieve.
00:16:40 And with that I'm actually coming to an end and this concludes Unit 3,
00:16:44 Architecture, Editions, & Landscape.
00:16:46 And in the next unit I will discuss the extensibility of SAP S/4HANA with you.
00:16:51 Hope to see you there.
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WEEK 2, UNIT 4
00:00:12 Hello and welcome to Week 2, Unit 4. In the previous unit we discussed Architecture, Editions,
& Landscape,
00:00:17 and now we will focus on the Extensibility of SAP S/4HANA. So, let's start.
00:00:25 Starting with the perspective on S/4 HANA. Right?
00:00:28 There are always different reasons why you would want to extend SAP.
00:00:32 First of all you may extend the scope. This is all about where we don't have the capabilities
that you may need,
00:00:37 maybe some industry-specific things or some less common things that we do not cover.
00:00:44 On the other hand side you may want to extend the reach to go to internal users.
00:00:48 Right, and these may be non-frequent users, and as we know that,
00:00:52 UI development at customers is something that is part of any deployment that we see.
00:00:57 So, all those use cases, I mean, they don't change. This is what IT is about.
00:01:02 And we also see that you do that to, on the one hand side, maybe achieve competitive
advantages
00:01:07 where there is no standard product available, where you do something specific,
00:01:11 maybe some secret sauce kind of developments very specific to your own needs.
00:01:13 On the other hand sometimes you do it also for time to value.
00:01:17 Well, if you have it on premise and the upgrade cycle is,
00:01:22 whatever, a while away and you cannot wait for innovation to come,
00:01:25 and then you may also today choose some cloud extensions,
00:01:29 or you want to apply changes not for all types of users at the same point in time.
00:01:33 And then there is also the need for sometimes pace-layering, right?
00:01:37 Well, you know, a system of record may have other cycles than some UI innovation that you
want to do.
00:01:44 This is definitely something that drives you into the need of extension.
00:01:47 And that is generic, it is not application-specific, so this does not go away.
00:01:52 And then, obviously, we see different needs of extensions or different uses of extending.
00:01:57 So a business user, he has normally, you know, the very small level of extension.
00:02:02 He may change the order of columns in a table or format of numbers
00:02:07 or even, you know, some applications you may want to hide from a launch pad
00:02:11 or from a portal page, or those kind of things.
00:02:13 So very low touch things, just accommodating my own perspective of an existing deployment.
00:02:18 Well, we also see that actually, if we can involve the business expert and an implementation
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consultant
00:02:23 to go into, you know, more configuration type things
00:02:28 where you could change the business rules based on configuration things
00:02:31 or add custom fields and tables very easily without a full development, then this is obviously of
need
00:02:38 and would change the way of how you can adopt a solution to the needs of a customer.
00:02:42 But then there is always the third level where you say well, this is not full size enough,
00:02:47 so I need a developer extending an application at large, where we traditionally talked about
00:02:52 maybe some add-on or bolt-on development or where you have a non-SAP system
00:02:58 that you even built up specifically for yourself and then work via integration.
00:03:01 Now all of these needs, they actually need to be supported in the new world of S/4.
00:03:06 Right, S4 doesn't change that, because this is something that is natural to IT,
00:03:10 that this kind of extension is required.
00:03:13 And this is why we have to provide the extensibility also in S/4.
00:03:17 Now, what you see on this slide is actually that we clearly differentiate
00:03:21 between the on-premise world and the cloud edition.
00:03:25 So, on the one hand side we have what we call an in-app extensibility.
00:03:30 And in-application extensibility is really what you do insight of a system on the same runtime
container
00:03:36 such that actually your code runs in the context of the existing SAP code.
00:03:41 On the other hand side we talk about a side-by-side deployment,
00:03:45 where you have an own capability, an own functionality
00:03:51 that is only connected via interfaces into an existing application.
00:03:56 On the side-by-side we have the HANA Cloud Platform,
00:03:59 and I'll talk in the end about what HANA Cloud Platform means here in this context
00:04:03 and how that is actually the tool of choice to do this kind of development.
00:04:08 It not only integrates with S/4, it also integrates with the other cloud solutions that we have.
00:04:15 And it's not only a development platform but also a runtime, so you can deploy the solutions
there.
00:04:20 And even you do not have then to consider runtime aspects of the solution.
00:04:24 In-App Extensibility, this is really, you know, the things you have traditionally done:
00:04:29 You've added some custom fields, some custom tables and then you created
00:04:33 in the ABAP solution your own ABAP code to work in context of that.
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00:04:38 Now, this in-app extensibility obviously is different on-premise versus cloud.
00:04:42 In the classic extensibility on-premise you can do anything that you know,
00:04:47 while in the cloud we will have to control what is available there.
00:04:51 So let's a little bit dive into the In-App Extensibility and how things are in there.
00:04:57 So, if you look into the classic world of how extensibility was done,
00:05:00 customers and partner at large have added capabilities to our solutions.
00:05:05 And how the colors here blur on the slide indicates that actually some of the things
00:05:10 that have been done in extensibility were actually really modifying our system.
00:05:14 Now, modification is not a very well defined term in the industry,
00:05:18 but I talk about those modifications where you had to ask for a modification key
00:05:22 and really change our lines of code to the need of your company.
00:05:28 And this is just one of the ways of extending our system in a, you know, not runtime optimized
way.
00:05:34 So there are dynamic calls, sometimes there are implicit enhancement spots
00:05:38 or code generation or even direct database writes.
00:05:41 Now these are all extension ways in the traditional world that cause havoc to lifecycle aspects,
00:05:46 because those are the things that in upgrades, in maintenance cycles and so on
00:05:50 will drive complexity, will drive testing and will drive then also the timelines of upgrades.
00:05:57 And, obviously, if we change that, if we come up with a public model
00:06:03 where we restrict the usage towards BAdIs, CDS and APIs,
00:06:07 then you can have a completely decoupled way
00:06:09 of exposing your own extensions on top of our applications.
00:06:14 And this is, if you wish, a lifecycle-optimized way of extending our applications.
00:06:18 Now this statement is true on-premise and in the cloud because, if you behave in this rules of
engagement,
00:06:24 then obviously also a system that you would run on premise will have different lifecycle
aspects.
00:06:30 Separation of concerns is a big one, and then also include some automated tests
00:06:35 to the capabilities that you're doing, and you're done.
00:06:40 Then obviously, if you access our application, you would want to go via APIs
00:06:44 that are in the contract, reliable, right, in terms of I can rely that this contract will be available
over releases.
00:06:50 So it's about whitelisted and stable interfaces.
00:06:52 And stable here means the definition of the interface is not changing.
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00:06:56 It is not the idea that it would, you know, dump over in any way.
00:06:59 So it's just the definition that is meant to be stable.
00:07:02 It has to be stable otherwise as well, but let's say, it's not a clear innovation. It's just required.
00:07:09 So now, if you go and compare the traditional way of how extension was done in the Business
Suite,
00:07:16 and this is still true and you can expect that to be true for the time the Business Suite is there,
00:07:23 you have all the extension capabilities, including modifications,
00:07:26 including code generations, as they are, and we are not changing anything there.
00:07:30 In the on-premise world of S/4, by the way, it is also possible to do these things, right?
00:07:34 We don't enforce those rules of engagement I've just talked about.
00:07:39 However, we make it available to you such that you can consider to consume them
00:07:44 because, as much as you consider them, the less effort you will have in lifecycle aspects.
00:07:48 Now we do understand that traditionally you violated those rules of engagement,
00:07:52 actually for three reasons: One is maybe you started early in the deployment
00:07:57 and we lacked capabilities which are there today. So you had to do it at that point in time.
00:08:02 That would be gone with the broad coverage that we have today in functionality.
00:08:05 Second, you may have just developed it but you know you didn't have any guidelines or tools
00:08:11 that guided you to an extension concept that is lifecycle-optimized, if you wish.
00:08:15 So by ignorance, by not knowing you violated such rules without a real proper need.
00:08:22 It's an architectural decision now to in those cases adhere to these rules.
00:08:24 And you can do that by deploying the new processes that we provide you
00:08:29 and, whenever you create new custom code, to actually tidy up the past.
00:08:34 And then sometimes, you violate those because you differentiate yourself so much in an area
00:08:39 that you have to because the pre-thought capabilities of extension are not good enough.
00:08:45 But if you restrict yourself to only those areas to violate those,
00:08:49 you will find yourself in an improved way of doing lifecycle
00:08:54 like upgrades or maintenance work and so on. So this is really changing the way.
00:08:59 In the cloud however, there is no discussion. We have to enforce these rules, right?
00:09:03 And as we have to enforce them there, we will have a tool-based support to lead a
development
00:09:10 towards not using, you know, direct writes to the database, not generating code in there.
00:09:15 So we will have tools that enforce those rules and by that can also make that available on
premise.
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00:09:23 Now for the key user extensibility, obviously, we cannot ask those things
00:09:27 to be done with a traditional developer studio or whatever have you, right,
00:09:33 because those are tools that are not in consumption.
00:09:35 And on the next slide I'll a little bit talk how we see those low-touch extensions being done.
00:09:41 And then, obviously, we will have the interface layer with the public APIs
00:09:47 that you can consume then also from the side-by-side deployment in HCP
00:09:52 to make you able to come up with your own bolt-on solutions.
00:09:58 Now, let's dive a little bit deeper into the tooling that we see coming for the in-app extensibility.
00:10:05 So what you see here is actually that we propose a new set of tools,
00:10:10 like UI Runtime Authoring, Report Adaptation, Forms Designer and Email Template Designer,
00:10:16 as easy-to-use low-touch artifacts or tools
00:10:20 in which you can create artefacts for runtimes of the end user.
00:10:25 And those will work against the OData services, and those are then how we expose the
applications towards you.
00:10:30 You will maintain custom fields, and this maintenance will be defaulted on each of those layers
00:10:36 in the application stack without you really needing to go into the development tools
00:10:40 because actually we can propagate these kind of extensions through the stack.
00:10:45 And this then will be a very simplistic way of
00:10:49 how a customer can come up with their own ways of reports or forms or emails and so on
00:10:56 because you start with the custom fields being maintained, being rippled through the stack
00:11:01 and then exposed towards the tools that are then simple to come up
00:11:05 with the new forms' authoring and runtime adaptations.
00:11:11 Now, so far to the in-app extensibility. And yes, there will also be BAdIs available.
00:11:17 So if you have the need to react on BAdIs, there is a tool,
00:11:21 a web-based browser towards a ABAP development environment
00:11:28 which will be validated against this restricted set of ABAP
00:11:31 such that you cannot create ABAP code that is in conflict with these rules of engagement in the
cloud.
00:11:38 And by that you than can even react further towards the new fields.
00:11:42 So by that you really are then also able beyond what the tool automation gives you
00:11:47 to have some very specific reaction towards your customer fields.
00:11:53 Now, let's have a deeper look also in the topic of side-by-side extension.
00:11:58 And as said, HANA Cloud Platform is the tool of choice that we see here.
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00:12:03 So by using the HANA Cloud Platform we have, on the one-hand side,
00:12:08 then also beyond the development environment, also lifecycle services.
00:12:12 We have self-service tools for you in the development environment.
00:12:16 We have the reuse services that you can use, which is around integration, around the
gateway, right.
00:12:22 Connectivity is something that we provide there, and mobile exposure
00:12:27 so you can develop mobile applications there. Identity management is also covered.
00:12:32 There is a concept which then can integrate towards what we have in S/4.
00:12:36 You can create your own documents and, last but not least,
00:12:40 it's then also a runtime that you may choose to deploy.
00:12:43 So being able to develop and operate the system in the HCP will then not require you
00:12:50 to come up with your own runtime and servers on premise.
00:12:53 You can then really run the application in the cloud.
00:12:56 Now the good thing is that the extension you are doing there,
00:12:59 it can actually run against the on-premise version of S/4 as well.
00:13:02 So, if you have something where you say over time, well,
00:13:05 I may start with an on-premise deployment of S/4 but go into the cloud later on,
00:13:10 being able to already extend in the HCP is, if you wish, a future-proof way
00:13:14 of doing that extension as then it prepares yourself for a cloud deployment as well.
00:13:20 Now, today we are actual having a roadmap for this extension concept.
00:13:27 From the get-go, obviously, we can have the Fiori user experience and tools to extend that.
00:13:33 We do have in-app extensibility and also the side-by-side platform.
00:13:38 However, the tools are still also growing in the capabilities that they are having.
00:13:41 So, one of the things that's on the roadmap is that we want to be able
00:13:45 to run the same HCP Fiori UIs against on premise and the cloud, which I already said.
00:13:50 So you will have then also the very same solution to arbitrarily run against either deployment,
00:13:56 which is I think important if you have a mixed landscape.
00:14:01 We also enrich the way that you can do the in-app extensibility.
00:14:05 So there also we will have to invest into the deployment models
00:14:10 and how we can have the restricted ABAP in the breakout; so how we enlarge the capabilities
there.
00:14:15 So we're starting with a smaller subset and we will enlarge over time to the limits.
00:14:19 But always keep in mind what is driving us is the lifecycle aspects.
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00:14:24 So we need to ensure that the ABAP does not violate the maintenance of the overall solution.
00:14:30 And going forward, we will further the integration of other cloud solution there
00:14:36 and also have further cloud capabilities such as lifecycle management and operations.
00:14:40 And with that I'm actually coming to the end of this session, Extensibility of SAP S/4HANA.
00:14:48 And in the next unit my colleague Bert Schulz will talk about the role of IT and LoB with SAPS/4HANA.
00:14:55 Thanks and good bye.
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WEEK 2, UNIT 5
00:00:12 Hello and welcome to Week 2, Unit 5.
00:00:15 After discussing the extensibility of SAP S/4HANA in the last unit,
00:00:20 we will now discuss the role of IT and line of business within SAP S/4HANA.
00:00:27 My name is Bert Schulze and I am the Vice President for Co-Innovation for SAP S/4HANA.
00:00:32 My focus is on cloud qualities and differentiators driven by co-innovation engagements
00:00:38 with our clients, thought leaders, and user organizations as well as our partners.
00:00:44 So, let's start with today's topic.
00:00:48 I thought about how to get you into this chapter.
00:00:52 Many of you might have heard about the s-curve adoption cycle of innovation.
00:00:57 This model has been used for different purposes like, for example,
00:01:00 Diffusion of Innovations, the best-selling book from Everett Rogers,
00:01:04 a professor of communication studies.
00:01:07 Fundamentally, it defines four stages of innovation adoption:
00:01:11 start up, scale, compete, and transition.
00:01:17 The innovation is going through all of these stages though we can see
00:01:22 that ERP, enterprise resource planning, is, known today as fairly optimized,
00:01:28 built fundamentally on a thinking and technology which is limited by the seventies.
00:01:34 The mathematical turn in the s-curve is characterizing the start
00:01:39 of the transition phase and the point of diminishing innovation.
00:01:45 Adoption of new break-through technologies and disruptive innovations
00:01:48 is not possible within the same curve.
00:01:52 It requires jumping on to the next level to drive adoption through the phases of
00:01:59 innovators, early adopters, early majority,
00:02:04 late majority, and, number 5, laggards.
00:02:09 Thinking outside the box is difficult at any time.
00:02:13 It requires approaching situations in new, innovative ways,
00:02:17 conceptualizing challengers differently and understanding your own position
00:02:22 in relation to any particular competitor in a way you'd never thought of before.
00:02:29 How do we cultivate the ability to look at things differently
00:02:33 from the way we typically look at them?
00:02:36 It requires to think with an ignorance of convention and boundaries that are mind-blowing.
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00:02:43 You need an interdisciplinary team focused on agility and
00:02:47 rethinking your differentiation based on this new technologies.
00:02:53 Methodologies like design thinking help to get into it.
00:02:58 Design thinking is a mindset backed by a set of tools
00:03:02 that gives a powerful new way to solve problems and unlock potential.
00:03:07 It completes the existing approaches by focusing on understanding the human side of things,
00:03:13 what technology is and what technology means to you and your customers.
00:03:22 So for IT it requires a massive change.
00:03:27 Gartner introduced the term of a bimodal IT in 2013.
00:03:33 Though we haven't seen enough details how to realize that concept,
00:03:37 the thinking behind is that an unprecedented pace of change
00:03:43 that we explore is coming with the digitalization.
00:03:47 While companies had half a decade to adopt to changing markets in the past,
00:03:52 we observe now change within half a year.
00:03:57 And a new dilemma arises once companies become successful.
00:04:01 To maintain the hard won position, they now put themselves on the defense.
00:04:06 The most innovative companies and, of course, also organizations
00:04:10 start becoming conservative the moment they become successful.
00:04:15 True, this helps their business position.
00:04:17 Unfortunately, this also signals the beginning of the end of their innovation leadership.
00:04:23 Achieving success directly comes with the close chasers aiming to compete you in your
markets.
00:04:30 They have the eye of the tiger and they're hungry to take you down.
00:04:34 Without anything to lose and streamlined to bite
00:04:38 competitors will gather to beat out to the market leader,
00:04:42 improving and often imitating to become better than you.
00:04:46 With all this pressure your focus as market leader shifts
00:04:50 from creating the next big thing to conserving your markets.
00:04:55 You will maximize return on investment but in return lose the creativity
00:04:59 and the eye of the tiger that had previously propelled you to success.
00:05:05 One organization is better equipped to drive adoption of disruptive technologies
00:05:12 in companies than others: It is the IT organization.
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00:05:16 But the traditional role of IT is to simply run the company like a clockwork.
00:05:23 Most tasks are operational and technical.
00:05:27 The challenge that IT faces is not only a transformation, it is a balance act -
00:05:33 a balance act between run the company and change the company.
00:05:39 Gaining competitive advantages and contributing to the company's top line
00:05:44 is the goal of the transformative aspect within the balance act.
00:05:49 And for IT it is a historical chance to regain boardroom influence.
00:05:59 But to do so, the modern IT needs to follow two different mindsets:
00:06:07 IT as a service provider driven by the classical IT mindset -
00:06:12 run the company without downtimes, anticipate issues before they take place,
00:06:18 plan carefully because once done a plan becomes a contract.
00:06:25 Doing things right is the indicator for efficiency.
00:06:29 That is sustainable but it needs a lot of time to do so.
00:06:36 Time, the LoB mindset doesn't have.
00:06:39 And that brings us to the new mindset of IT as business innovators.
00:06:45 Topics are addressed in an iterative approach:
00:06:48 Stay fast, start fast, and fail fast; learn and change.
00:06:55 The general guideline is progress over perfection.
00:07:00 Doing the things right is key to effectiveness of the IT organization.
00:07:07 Doing the right things is key for the line-of-business mindset.
00:07:12 And this is in direct contrast.
00:07:17 But does this qualify for two different IT organizations?
00:07:21 I personally don't think so
00:07:23 because otherwise companies will be tripped in the same situation as before.
00:07:29 Keep in mind: Whatever happens on the right side here of this picture
00:07:33 is designed for speed and not for scale.
00:07:38 And all new services, products, and innovations explored on the right side
00:07:44 need to potentially be deployed with scale to not lose momentum
00:07:49 and keep the advantage alive on the left side.
00:07:54 Before we now move ahead to look into how to remap the way business is changing,
00:08:00 we should take a quick look at the characteristics of two mindsets to make it more tangible.
00:08:09 There are many aspects which are differentiating the two mindsets,
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00:08:14 which is shown here with the wall in between.
00:08:19 IT as business innovator is not about cost reduction.
00:08:23 It is about future investments in new markets, new opportunities,
00:08:27 or at least, to defend existing market positions against the close chasers.
00:08:33 Therefore, a business case has to be identified.
00:08:37 A clear strategy has to be aligned.
00:08:39 And a business and technology roadmap has to be in place.
00:08:44 The technology itself becomes a liberating force.
00:08:48 As an example, it is cheap to store and process a large volume of data.
00:08:54 But only if companies are able to make it smart data and show tangible benefits,
00:08:59 they will see adoption and an improved competitive position.
00:09:06 Will smart data help to improve decision making,
00:09:09 innovate business models or change business processes and business outcome?
00:09:13 This should be put into the center of gravity of the organizational approach.
00:09:19 Smart companies that are here to leapfrog the competition
00:09:22 will bring the forces of liberating technology and business competency
00:09:27 together to win in the new digital marketplace.
00:09:31 And this brings us to remapping the way you run businesses.
00:09:36 From a company perspective, this can be seen as a landing page.
00:09:40 And also, if you move it from left to right, like a sliding controller
00:09:45 between an opportunistic adoption of digital technologies and
00:09:50 a transformation of a core business model
00:09:54 via systematically leverage digital performance improvements and
00:09:59 leverage digital to develop new competitive advantages.
00:10:04 Disruptive technologies are driven first in the iterative approach we've seen on slide 4
00:10:10 and might initially appear just as a new technology solution.
00:10:16 Usage might only improve IT's life, for example, higher availability or fast release cycles,
00:10:21 but does not have an impact on business performance.
00:10:26 The next step would be to use the new technologies
00:10:30 to change existing processes or even replace them.
00:10:34 So you can see we are moving now the lever towards the right side of that picture.
00:10:40 Thinking out of the box helps to find new ways and new solutions.
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00:10:45 However, it still has only impact on the cost side, not on the business value.
00:10:51 In order to change that, disruptive technologies have to not only
00:10:57 influence internal processes but also external pr
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