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The SAP ERP Release Strategy and Enhancement Package Roadmap Christian Oehler ERP Solution Management, SAP AG

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  • The SAP ERP Release

    Strategy and Enhancement

    Package Roadmap

    Christian Oehler

    ERP Solution Management, SAP AG

  • Key take aways

    It is a significantly lower effort to install functional

    enhancements. You only install what you need.

    You will gain benefits like a higher flexibility to activate the

    functionality you really need.

    You will receive an environment that allows reliable change planning resulting in a reliable budget planning.

    You will learn about the test cases SAP provides and how

    they speed up your project and decrease your effort.

  • What Are Enhancement Packages?

    Optionally installedand activated software innovations for SAP ERP 6.0

    Software innovations include

    UI simplifications

    Functional enhancements

    Enterprise services

    Cumulative in nature: current enhancement packages contain entire content of earlier packages

    Enhancement packages are not support packages

    SAP enhancement packages & SAP ERP 6.0

    Delivering continuous innovation around a stable core

    SAP ERP 6.0

    SAP NetWeaver

    2006 2008 2010 2012+

    Enhancement Packages

  • Financial Supply Chain Management

    Biller Direct

    Dispute Mgmt

    Credit Mgmt

    Collections Mgmt

    Bank Relationship Mgmt (including

    SWIFT integration)

    Business Consolidation

    New Web User Interface

    Multi-period consolidation

    Restatement support

    Document and task approvals

    Travel Management

    Travel request

    Flexible and simplified process

    XI services

    EAM

    Enable new Mobile Asset

    Management (xMAM)

    Basic Maintenance Processing

    Real Estate Management

    Multi-currency handling

    Employee assignment, move

    management, room reservation

    Retail & Wholesale

    Utilities

    Telecommunication

    Media

    Automotive

    Travel & Transportation

    Aerospace & Defense

    Mill Products

    Learning Solution

    Standard-Support: AICC /

    SCORM2004

    Course program

    Workcenter: Instructor for

    teaching and tutoring

    Partner Integration of Adobe

    Connect

    HR Shared Services

    Simplified Process Design

    Enhanced integration with SAP

    E-Recruiting

    Integration with EIC enabled

    Additional Services for ESS

    and MSS

    Enable new SCM 5.1 developments around Supplier Network

    Collaboration

    Inventory Lookup

    Integration of MES and QM Systems

    Various process enhancements in eSOA and industry enhancements

    Logistics Execution, Manufacturing

    Financials

    Simplification of order-to-cash processes by role "Internal Sales Representative":

    New work center view for incoming customer

    inquiries with order status tracking, price and

    availability information

    New user interfaces and POWER lists

    Enhancements in sales order management:

    SAP search engine for material search as well

    as sales and billing documents

    PDF-based print forms

    Down payments based on document

    conditions

    Order-to-Cash

    Corporate Services

    Human Capital Management

    Industries

    Whats in for you?Enhancement Package 2 at a glance

    Now general

    available

    SAP 2007 / Page 4

  • SAP 2007 / Page 5

    At-A-Glance: SAP

    Enhancement Package 3

    Simplified financial reporting

    XBRL reporting

    Enhancements of New General Ledger (G/L)

    Treasury & risk mgmt new fin. instruments, risk analyzer

    Local close closing cockpit for cross system scheduling

    Group close Autom. sign-off

    Financials

    Talent Management: E-recruiting general enhancements SAP Manager Self Services New search capabilities

    Talent management: Analytics SAP ESS

    Enhancements for personal information scenarios

    Concurrent and global employment enablement

    Cross-Application Time Sheet (CATS)

    cProjects integration: maintain cProjects details from CATS classic

    and CATS regular

    HCM localization topics

    HCM

    Environmental compliance integration

    SAP Environment, Health & Safety (SAP EH&S) Usability and Reporting

    Enterprise asset management:Takeover and handover of technical

    objects

    Enterprise asset management - Shift notes and reports

    Pool asset management Quality management RE/FM, Earmarked Funds Project System Functional &

    Usability Enhancements

    Corporate Services

    Recipe management compliance checks (RM CC)

    Manufacturing Information SystemShift Report/Notes, ConfirmationXSteps in Routing and Production Order

    PI-Sheet Enhancements cFolders: Import and Export of MPNs

    Product Development and Manufacturing

    Improvements in sales and billing Advanced order processing and

    billing functions

    Logistics, Commodity Pricing Engine in SD and MM

    Sales and Service

    Buyer Role for simplified access of complete Procure-to-Pay scenario

    Creation and collective processing of purchase requisitions

    Returnable packaging logistics without DIMP

    LE warehouse integration Warehouse operations manager

    (WOM) role

    Procurement and Logistics Execution

    Highlights

    Now in Ramp-Up

  • SAP 2007 / Page 6

    Financial and

    Public Services

    Credentialing

    Work center for sales manager

    Claims analytics for the roles of claims handler and claims supervisor

    Four enterprise service bundles

    Financial asset management with hedge management functionality

    Customer billing with enhanced analytics capabilities and service-

    enabling of the inbound interface

    Insurance

    Improvements in organizational flexibility

    Enhancements in deployed operations

    Further enhanced defense support environment, health, and safety

    Integration of real estate and organizational flexibility

    Operational readiness

    Amendments to unit (line) maintenance

    Further functionalities for interchangeability of materials

    Architectural changes and other specific capabilities

    Defense and security

    Funds management: improved integration with materials

    management, controlling, and

    project system; improved

    budgeting with U.S. Federal

    specific attributes and additional

    U.S. Federalspecific fields and functions

    Grantor management accounting: support of accounts

    payable, accounts receivable,

    and PSCD for financial

    accounting

    Grantee management: support of overhead, revaluation, cost

    sharing, and archiving

    Tax and revenue management: improvements in identification

    and returns processing and

    collections management

    Public sector

    New functionality to support enhancements for the localization

    of SAP Patient Management for

    the country version Italy.

    Healthcare

    SAP Student Lifecycle Management:

    Implementation Accelerator Package (IAP)

    User Interface for Academic Advisor

    Higher Education

    Now in Ramp-Up

  • SAP 2007 / Page 7

    Manufacturing and

    Service Industries

    Improvements for Common Warehouse Metamodel (CWM) in inventory accounting, logistics and

    master data

    Direct store delivery (DSD): process improvements

    Consumer Products

    Improvement in the user interface for professional services: billing

    request editor

    Professional Services

    Global data synchronization enhancements

    Enhanced interface for merchandise and assortment planning (MAP)

    Retail method of accounting

    Product lookup within the in-store customer order management process

    In-store food production integration of partner solution

    Enhanced cross-docking interface to external warehouse management

    systems

    Enhancements in agency business and condition contract

    Enhancements in commodity management

    Retail and Wholesale

    Advanced order processing and billing in SAP ERP

    Improved material exchange with available-to-promise (ATP) checks

    Enablement of item unique identification (IUID)

    Elogbook integration

    Transportation

    Commodity pricing engine in sales and distribution and materials management

    Enhancements of trader and schedulers workbench (TSW)

    functionality

    Technical integration of IS-OIL and IS-U

    Enhancements of remote logistics management (RLM) functionality

    Enhancements of joint venture accounting (JVA) functionality

    Oil and Gas

    Now in Ramp-Up

  • Timeline for SAP enhancement packages for

    SAP ERP

    * Planned Ramp-up Dates: Subject to Change

    Enterprise SOA

    Functionality

    Simplification

    ~50 optional Business Functions and 23 enterprise

    service bundles in Enhancement Package #2

    Delivered

    Q2 2007

    Delivered

    Q4 2007Q4 2007* Q3 2008* Q4 2008*

    Role Based

    Access

    Order

    to Cash

    Procure

    to Pay

    Attract

    to Perform

    Accounting

    to Reporting

    Adaptive

    Manufacturing

    Order

    to Cash

    Procure

    to Pay

    Financial

    Shared

    Services

    Additional

    Enterprise

    Services

    HR Shared

    ServicesRecruiting Fast Closing

    Talent

    ManagementTreasury

    EhP1 EhP2 EhP3 EhP4 EhP5

  • New

    Innovation

    Lifecycle

  • Evolution of SAP Architecture

    SAP ERP 6.0

    SAP NetWeaver 7.0

    Co

    mp

    osit

    e A

    pp

    licati

    on

    Fra

    mew

    ork

    APPLICATION PLATFORM (7.00)

    Life

    Cycle

    Mg

    mt

    Composite Applications

    PEOPLE INTEGRATION

    Multi Channel Access

    Portal Collaboration

    INFORMATION INTEGRATION

    Master Data Mgmt

    Bus. Intelligence Knowledge Mgmt

    PROCESS INTEGRATION

    Business

    Process Mgmt

    ABAP

    DB and OS Abstraction

    Strategic Enterprise Management

    Self-Services

    Internet Sales

    Switch Framework

    Supplier Relationship Management

    Enterprise Extensions Industry Extensions

    SAP ECC Core (6.0)

    ITS

    Integration

    Broker

    J2EE

    and more

    EhP 1 EhP 2 ..

    SAP 2007 / Page 10

  • Mandatory

    Improved software lifecycle

    Installation of new functionality separated from activation via Switch Framework

    Preamble

    SAP enhancement packages are shipped as a delta shipment to SAP ERP 6.0

    Selective Installation

    Each SAP enhancement package contains

    new versions of existing software components

    You only update software components, which are related to the functionality you want to use.

    After installation:

    No UI or process change until a Business Function is activated

    No implications on the underlying NetWeaver platform, however SAP enhancement

    packages require defined ERP Support Package Stack

    Selective Activation

    New functionality must be explicitly switched on

    to become active in the system.

    If activated:

    Changes are predictable, only well described changes in the activated areas.

    Testing is simplified with templates, provided for every Business FunctionMandatory

    Optional

    Support

    Packages

    Enhancement

    Packages

    Selective Update - Example

    SAP 2007 / Page 11

  • Functional perspective

    No UI or process change during installation

    In previous days: Upgrades and now: SAP Enhancement Packages

    Time

    Business

    Requirements

    = innovation gap = R/3 4.6c standard

    R/3 4.6c Implementation Time

    Bu

    sin

    ess R

    eq

    uir

    em

    en

    ts /

    Syste

    m F

    un

    cti

    on

    ali

    ty

    Business

    Requirements

    = innovation gap

    ECC 6.0

    = ERP 6.0 standard

    EhP 2 EhP 4

    Upgrade as a major business activity

    every 5-6 years to fulfill business requirements.

    New functionality implemented in digestible

    portions via SAP enhancement packages.

    Bu

    sin

    ess R

    eq

    uir

    em

    en

    ts /

    Syste

    m F

    un

    cti

    on

    ali

    ty

    = ERP 6.0 standard = EhP functionality

    ERP Upgrade

    Permanently decrease functional gap

    With SAP enhancement packages for SAP ERP continuous

    provisioning of new functionality is possible.

    SAP 2007 / Page 12

  • EhPEhP

    Maintenance:

    Support Package Stack

    Legal/Tax Changes, Corrections, Mandatory

    Technically a set of Support

    Packages and patches

    Traditional SAP Application

    Innovation Lifecycle

    SAP ERP

    (ECC 6.0)

    Release

    Upgrade

    Upgrade

    Support

    PackageSAP

    System

    New SAP Application Innovation

    Lifecycle

    Time

    New: SAP enhancement

    Packages for SAP ERP

    Implementation Strategy

    New SAP ERP innovation lifecycle

    Support

    Package

    Support

    Package

    Support

    Package

    Support

    Package

    Support

    Package

    Upgrade

    New & improved functionality

    Optional, new Software Components

    Activate new functionality in Switch Framework via Business Function

    Potential implementation strategies:

    Ongoing innovation as part of maintenance strategy: Install all relevant software

    components together with Support Packages

    Demand driven Innovation: Activate Business Function when required

    Evaluate content of SAP EhP in advance & select required functionality Apply required Support Package Stack AND include all required parts of SAP EhP

    1

    2

  • Installation

    Testing

    Training

    Adjustment (SPAU)

    Effort for

    Installation of

    Support

    Packages

    Installation of

    Support Packs +

    Enhancement

    Packs

    Technical

    Upgrade

    nonenone

    lowlow

    low

    Regression TestRegression Test

    low

    Separation of IT schedule and business schedule

    Leverage synergies : Install EhP together with Support Package Stack

    Install SAP enhancement packages combined with Support Pack

    Stack as a maintenance activity with only minor additional effort.

    high medium*

    medium

    Full Integration &

    Acceptance test

    medium low*

    * Depending on various factors, e.g. start release

  • Recommendations

    Discovery

    Use Sandbox System to explore new functions.

    Installation tactics

    Always combine installation of enhancement package with the installation of the latest Support Package

    Stack.

    Preparation

    Read the documentation: The principles and methods

    to install SAP enhancement packages differ

    significantly from a traditional release upgrade.

    Dependencies

    If you have an Add-On installed in your system, ask

    your Add-on provider whether it is compatible with the

    SAP enhancement package for SAP ERP 6.0.

    SAP 2007 / Page 15

  • New

    Implementation

    Procedure

  • SAP 2007 / Page 17

    Enhancement package lifecycle

    Discover

    Business Process Champions,

    Technical Operations

    Test & Go Live

    Key Users,

    Business Process Champions

    Activate & Configure

    Technical Operations,Application

    Mgmt., Custom Development

    Evaluate & Decide

    Champions,

    Technical Operations,

    Project Mgmt. Office

    Prepare & Install

    Technical Operations

    PLAN

    BUILD

    The roles mentioned on this slide refer to the SAP Standards for E2E Solution Operations.

    1

    4

    5

    3

    2

    Decouple technical installation from business innovation:

    Install SAP enhancement package combined with Support Pack Stack as a

    maintenance activity with only minor additional effort .

  • Enhancement Package Center

    Single point of access to all information related to a Business Function

    Documentation

    Release notes

    Dependencies

    Test catalogue

    Advantages for Customers

    Documentation has deeper level of granularity

    Increased ability to analyze new software functionality

    Easily identify needed Business Function(s)

    http://service.sap.com/erp-ehp

    Step 1 & 2:

    Discover - Evaluate & Decide

    1 2

    SAP 2007 / Page 18

  • Queue of installable

    packages (stack XML)

    1. Choose Business Functions, e.g.:

    'Retail Buying' 'Retail Planning'

    SAP Note 1052470

    (mapping of Business Functions

    to technical usages)

    2. Map Business Functions

    to Technical Usage, e.g. 'Retail'

    3. Check prerequisites

    4. Automated download of required installation files for selected technical usage with Solution Manager Maintenance Optimizer

    5. Install packages using SAINT

    transaction and/or JSPM

    SAP enhancement

    package 2 Master Guide

    (Explains

    general concept)

    SAP Note 1045303

    (Installation of SAP enhancement

    package 2)

    Step 3:

    Prepare & Install

    3

    SAP 2007 / Page 19

  • Business Function Technical Usage Instances &

    Software

    Components

    RE_GEN_CI_1

    (Real Estate)

    HCM_ASR_CI_1

    (HCM, Administrative

    Services 01)

    Central

    Applications

    HCM Administrative

    Services

    SAP ECC Server

    EA_APPL 602

    SAP_APPL 602

    SAP ECC Server

    EA_HR 602

    SAP NW Enterprise

    Portal

    Business Package

    1

    2

    Example:

    SAP enhancement package 2 for SAP ERP

    Please note: Once a SAP Business Function is activated - it cant be reversed.

  • SAP 2007 / Page 21

    1. Enhancement of Solution Manager

    - Maintenance Optimizer calculates the correct

    software component versions and support package

    stack you need to install depending on chosen Technical Usage

    - In addition Maintenance Optimizer provides a

    definition file, which can be read by the installation

    tools in order to create a valid import queue

    2. Enhancement of installation tools:

    - SAINT is able to update server components

    - SAINT gets automatic selection according to the

    stack definition- JSPM is enabled for extended SAP enhancement

    package stack definition

    - JSPM installs selected packages as a bundle

    Simplified Installation:

    Enhanced SAP lifecycle tools

    3

  • SAP 2007 / Page 22

    Benefits of SAP enhancement packages:

    Installation

    No upgrade of hardware and SAP NetWeaver

    Selective installation of software components

    No migrations of data / customizing

    No table conversions

    Only changed and new objects delivered (delta shipment)

    No upgrade customizing

    After the installation no UI or process change

    Lean Installation

    Lower hardware cost

    Lower manual effort

    Lower risk through unchanged system behaviour

    Faster installation

    Less effort for modification adjustment

    Benefits

  • Basis: Switch framework enables

    optional activation of Business Functions

    With the Switch Framework it is possible to control the

    activation of SAP ERP objects.

    Activating a Business Function triggers switches,

    which then influence the execution of the code.

    The Switch Framework is a proven concept (already

    used to retrofit Industry Solutions in ERP 6.0).

    Switch Framework

    SAP ERP(ECC 6.0)

    Foundation: Enhancement Framework is the solution of SAP NetWeaver 7.0

    to bring all enhancement techniques under one roof.

    The Enhancements offered by Enhancement Framework

    can be switched by the Switch Framework.

    The following are different enhancement technologies

    available under this framework:

    Source Code Enhancement; Function Group Enhancement

    Class Enhancement; Kernel-BADI Enhancement

    4

    SAP 2007 / Page 23

  • Step 4:

    Activate and configure

    Call transaction SPRO

    Activate ECC Extensions

    Enterprise Business Functions Tab

    Set Planned Status

    4

    SAP 2007 / Page 24

  • Step 5:

    Test & Go Live

    Activities

    Acceptance test for

    selected Business Functions

    Use standard test case templates

    Train end-users

    Go live, transport switch

    activities to production system

    Benefits

    Faster test preparation due to

    test case templates

    Smaller test scope because changes in objects are

    documented for each Business Function

    Smaller training effort due to limited and documented effect

    on user interfaces

    Shorter downtime than in full releaseupgrade

    5

    SAP 2007 / Page 25

  • Benefits of SAP enhancement packages:

    Activation

    Explicit activation separately for each Business Function

    Schedule for activation independent from schedule of IT activities

    Well-documented test scope for each Business Function

    UI changes only occur in activated parts

    No further modification clearing after activation

    Optional Activation

    Time of adoption is driven by business

    Adoption of innovations in digestible portions

    No disruption of the running business.

    Flexibility to satisfy innovation needs from different business areas in a decoupled way.

    Easier Integration and Acceptance Testing

    Less end-user training

    Benefits

    SAP 2007 / Page 26

  • Customer Proof Points

    We were delighted that no side effects occurred at all outside of SAP Travel Management - where we activated a new

    functional capability. This was especially important for our payroll process which is running on the same system. The enhancement package concept allowed us to fulfil requirements years before we will start our next release upgrade. The implementation was even simpler than implementing a support package and no critical issues occurred.

    The biggest benefit for us is to offer certain travel expense types depending on the chosen trip type. This reduces the error rate and helps all travellers to comply with our corporate expense policy.We went live with the travel management functionality of enhancement package 2 a few weeks ago. The end-user reactions are very positive.

    Stephan Polster, Project Manager, ThyssenKrupp Steel

    The implementation of SAP enhancement package 2 for SAP ERP 6.0 was much easier

    than upgrading a full release. We installed all the software components that we could get in order to be open to implement further innovations at minimized cost at any time.

    Thomas Muhler, Technology Consultant, cormeta ag

    We implemented enhancement package 2 in order to use the new capabilities for Bank

    Relationship Management. No critical issues occurred. The implementation was very easy.

    Jrg Engel, System Engineer, Wrth-Group

    SAP 2007 / Page 27

  • Outlook &

    Summary

  • Composite Applications

    SAP NetWeaver 7.1(capabilities extending the foundation)

    Accelerated Innovation

    SAP NetWeaver 7.0(foundation for the SAP Business Suite)

    EhP EhPEhP

    SAP Business Suite

    Continuous Innovation

    ERPCRM SCM

    PLMSRM

    EhP EhPEhP

    Increasing flexibility through composition

    Deploying business innovation without

    disruption

    With SAP ERP 6.0 SR3 it is possible to integrate

    SAP enhancement

    packages into the

    Upgrade procedure.

    No

    n-S

    AP

    Outlook

    SAP 2007 / Page 29

  • SAP is changing the game with enhancement packages:

    Innovation without disruption

    Sustainability All Enhancement Packages follow SAP ERP 6.0 maintenance cycle

    Pick and Choose Switch framework provides flexibility to choose what functionality to use

    Less Complexity - Simplified testing Predictable projects and isolated testing and adjustment effort

    Deploy as you go All SAP enhancement packages are optional

    Summary

    SAP 2007 / Page 30

  • SAP 2007 / Page 31

    Update: New document available

  • Further read me for getting started with SAP enhancement package 2 for SAP ERP

    What is the idea of an SAP enhancement package?

    1. SAP ERP release strategy Innovation without disruption (presentation)

    2. Lifecycle of a SAP enhancement package (presentation)

    3. Technology aspects of SAP enhancement packages (presentation)

    Which new capabilities are included in a SAP enhancement package?

    Access the main page for SAP enhancement packages for SAP ERPon SAP Service Marketplace. It includes overview and detail presentations of whats inside: http://service.sap.com/ERP-EHP

    Before you install SAP enhancement package 2 for SAP ERP 6.0 make sure you are aware of

    New installation routine for enhancement packages, as described in the lifecycle presentation (listed as presentation no. 2, above) in phase 3 prepare and install.

    Study the must-know chapter Enhancement Packages within the Learning Map Technical Concepts for SAP ERP 6.0 which you find in the OKP (Online Knowledge Product) for SAP ERP 6.0: http://service.sap.com/rkt-erp=> Consulting: SAP ERP 6.0

    The Master Guide for SAP enhancement packages for SAP ERP (document)

    SAP 2007 / Page 32

  • Questions?

    Christian Oehler

    Solution Manager

    Application Solution Management ERP

    SAP AG

    Dietmar-Hopp-Allee 16

    69190 Walldorf

    Germany

    Mobile +49/160/3603621

    Fax +49/6227/78-31120

    E-Mail [email protected]

    SMP http://service.sap.com/ERP

    Thank you for your attention.

  • 101

    Session Code: