Upload
trinhdang
View
217
Download
3
Embed Size (px)
Citation preview
#FocuS/4
FocuS/4 – Project Overview SPV S/4HANA Event, 28th November 2016, Munich
Andreas de la Camp
Restricted © Siemens AG 2016
Restricted © Siemens AG 2016
November 2016Page 2 CF R / GS IT /
Content
3. SAP S/4HANA Finance – Proof of Concept at Siemens: Case for Action, Objectives and Setup
Use Case B – Approach, Conclusion
Use Case A – Approach, Deliverables and Conclusions
1. Siemens Company Profile
2. SAP ERP Systems Architecture at Siemens
4. The Siemens S/4 HANA approach (FocuS/4 Project)
Objectives and functional scope
Approach and timeline
Restricted © Siemens AG 2016
November 2016Page 3 CF R / GS IT /
Content
3. SAP S/4HANA Finance – Proof of Concept at Siemens: Case for Action, Objectives and Setup
Use Case B – Approach, Conclusion
Use Case A – Approach, Deliverables and Conclusions
1. Siemens Company Profile
2. SAP ERP Systems Architecture at Siemens
4. The Siemens S/4 HANA approach (FocuS/4 Project)
Objectives and functional scope
Approach and timeline
Restricted © Siemens AG 2016
November 2016Page 4 CF R / GS IT /
Siemens Company Profile
Fiscal Year 2015 – Key figures
Key figures Siemens Fiscal Year 2015
1 Comparable, excluding currency translation and portfolio effects 2 Continuing and discontinued operations 3 Commonwealth of Independent States
Revenue by industrial business
Power and Gas (PG) 17%Healthcare 17%
Process Industries and Drives (PD) 13%
Digital Factory (DF) 13%
Mobility (MO) 10%
Not included: Financial Services (SFS)
Wind Power and Renewable (WP) 7%
Energy Management (EM) 16%
Building Technologies (BT) 8%
Revenue by RegionAsia, Australia 20%
Americas 29%
Europe, CIS3, Africa, Middle East
(without Germany) 36%
Germany 15%
(Continuing operations; in millions of €
except where otherwise stated) FY 2015 FY 2014 Change in %1
Volume
Orders 82,340 77,657 (1)%
Revenue 75,636 71,227 (1)%
Profitability and capital efficiency
Net income2 7,380 5,507 34%
Return on capital employed (ROCE)2 19.6% 17.2%
Liquidity
Free cash flow2 4,674 5,201
Employees (in thousands) Sep. 30, 2015 Sep. 30, 2014
Total (continuing operations) 348 338
Germany 114 114
Outside Germany 234 224
Restricted © Siemens AG 2016
November 2016Page 5 CF R / GS IT /
Siemens Vision 2020
Selected growth fields
Flexible and small gas turbines Digital-twin software
Key sectors in process industries
Image-guided therapy and
molecular diagnostics
Offshore wind power
Distribution grid automation
and softwareUrban and
interurban mobility
Business analytics and data-driven
services, Software, and IT solutions
Restricted © Siemens AG 2016
November 2016Page 6 CF R / GS IT /
Content
3. SAP S/4HANA Finance – Proof of Concept at Siemens: Case for Action, Objectives and Setup
Use Case B – Approach, Conclusion
Use Case A – Approach, Deliverables and Conclusions
1. Siemens Company Profile
2. SAP ERP Systems Architecture at Siemens
4. The Siemens S/4 HANA approach (FocuS/4 Project)
Objectives and functional scope
Approach and timeline
Restricted © Siemens AG 2016
November 2016Page 7 CF R / GS IT /
Siemens
SAP ERP Systems Architecture as of today
EU, AM, APACCU MO PD DF EM PG PS WP BT• 52 SAP ERP systems for all
Siemens Divisions and Regions.
• All ERP systems are running on
SAP HANA (incl. EhP7) since
August 2016.
• All systems deliver data to SAP
BCS Consolidation system via
common structure and format.
• SAP BW Reporting retrieves all
relevant data and documents
via SAP SLT1) technology from
operative ERP systems.
• SAP ERP systems perform the
main business functions for order
processing, production
planning, warehouse,
customer service, project
execution, etc.
Corporate Reporting and Consolidation
SAP Consolidation System on HANA / Corporate Reporting on HANA
Siemens DivisionsCorp. Unit Regions
only schematic view, not complete list of systems
Logistics & Finance
EU1
EU2
US
….
CUP P22 RLP
R2P
AXP
P03 PS5
ENP
R0P
I1P, I2P, I3P
PD2
KSP
RBP
OPP
PS1
PC1
APAC
………
Not in scope:
SAP ERP systems of Siemens Healthcare Division and ERP systems of Dresser Rand company.
Non-ERP systems, e.g. SAP BI, APO, SRM, HCM, others
Siemens has globally approx. 160,000 SAP users
CHN
BRA
…
…
…
1) SLT: SAP Landscape Transformation Replication Server
Restricted © Siemens AG 2016
November 2016Page 8 CF R / GS IT /
Content
3. SAP S/4HANA Finance – Proof of Concept at Siemens: Case for Action, Objectives and Setup
Use Case B – Approach, Conclusion
Use Case A – Approach, Deliverables and Conclusions
1. Siemens Company Profile
2. SAP ERP Systems Architecture at Siemens
4. The Siemens S/4 HANA approach (FocuS/4 Project)
Objectives and functional scope
Approach and timeline
Restricted © Siemens AG 2016
November 2016Page 9 CF R / GS IT /
SAP S/4HANA Finance – Proof of Concept:
Case for action and expected benefits 1)
1. SAP supporting the current ERP Classic G/L delta account solution only until 2025.
Current Siemens ERP applications: functional and process capabilities are often 15-20 years old.
Possibility to combine S/4HANA implementation with a new ERP Systems Architecture and ERP
Roadmap.
2. Standard Migration of one ERP system to NewGL only possible at end of a Fiscal Year.
3. Upcoming innovations of SAP and future legal requirements will demand New GL
and S/4HANA capabilities.
4. SAP S/4HANA promises drastically simplification of processes as well as agility and flexibility(parallel ledgers, document split and posting accuracy, less reconciliation, reduced period-end closing
efforts).
5. Significant potential to reduce Siemens specific Add-on developments.
1) SAP S/4HANA Finance - Proof of Concept for Siemens was initiated and kicked-off in August 2015.
Restricted © Siemens AG 2016
November 2016Page 10 CF R / GS IT /
SAP S/4HANA Finance – Proof of Concept:
Objectives
Proof capability ofCentral Finance approach
Reduce process and technical complexity
Migrate from Siemens ERP to S/4HANA Finance
Improve financial processes by using new technologies
Standardization
Finance –Proof of Concept
Evaluate Benefits and Risks
BA
€
Restricted © Siemens AG 2016
November 2016Page 11 CF R / GS IT /
Content
3. SAP S/4HANA Finance – Proof of Concept at Siemens: Case for Action, Objectives and Setup
Use Case B – Approach, Conclusion
Use Case A – Approach, Deliverables and Conclusions
1. Siemens Company Profile
2. SAP ERP Systems Architecture at Siemens
4. The Siemens S/4 HANA approach (FocuS/4 Project)
Objectives and functional scope
Approach and timeline
Restricted © Siemens AG 2016
November 2016Page 12 CF R / GS IT /
Use Case A:
Approach & Project Deliverables
New GL design
S/4HANA Finance design
New GL implementation
S/4HANA Finance implementation
Results of process tests
Evaluation of migration scenarios
Template components list
Benefits & Risks evaluation
Main
Delivera
ble
s U
se C
ase A
1.
2.
3.
4.
5.
6.
7.
8.
SAP S/4HANA – Finance
Migration of one Siemens SAP ERP
with Classic GL to
S/4HANA Finance1) with NewGL
SAP ERP
Classic GL
D22
SAP ERP
New GL
D22
SAP
S/4HANA FIN
New GL
G22
1) S/4HANA Finance: Add-on installed in ERP Business Suite on HANA, ERP 6.0, EhP7, On-Premise Edition, Release 1503, Support Package Stack 1508
New technologies
Siemens-specific enhancements
Restricted © Siemens AG 2016
November 2016Page 13 CF R / GS IT /
Use Case A: Conclusions for Siemens
based on SAP S/4HANA Finance Proof of Concept
Data cleansing and process redesign are prerequisites to use new
SAP functionalities
Back to SAP Standard is feasible for Siemens e.g. due to
Delta account solution replaced by full value parallel posting logic
Document split enables postings to the correct profit center at source
New asset accounting functionality implemented
Migration in one step (to NewGL and S/4HANA Finance) independent from
fiscal-year end, possible at month-end
Data of the actual and previous fiscal year can be transferred into the new
SAP S/4HANA data model
End-to-End Siemens business processes run under S/4HANA
Conclusions
Use Case A
Restricted © Siemens AG 2016
November 2016Page 14 CF R / GS IT /
Content
3. SAP S/4HANA Finance – Proof of Concept at Siemens: Case for Action, Objectives and Setup
Use Case B – Approach, Conclusion
Use Case A – Approach, Deliverables and Conclusions
1. Siemens Company Profile
2. SAP ERP Systems Architecture at Siemens
4. The Siemens S/4 HANA approach (FocuS/4 Project)
Objectives and functional scope
Approach and timeline
Restricted © Siemens AG 2016
November 2016Page 15 CF R / GS IT /
Use Case B: Approach Proof Capability of SAP Central Finance
Siemens requirements of Finance
processes for SAP Central Finance
# re-
quire-
ments
Closing 8
Asset Accounting 1
Accounts payable / Accounts receivable 2
Payment 4
Controlling 5
Reconciliation 4
Other accounting activities 2
Reporting 1
Digitalization 1
Interoperability 2
Common requirements 17
total 47
SAP S/4HANA – Central Finance
SAP
ERP
Other
ERP
SAP
ERP
SAP
ERP
SAP
ERP
…
Financial Reporting
Proof capability of SAP Central Finance
in a theoretical feasibility evaluation
One direction SLT1) interface
1) SLT: SAP Landscape Transformation Replication Server
Restricted © Siemens AG 2016
November 2016Page 16 CF R / GS IT /
Use Case B: Conclusions for Siemens
based on SAP S/4HANA Finance Proof of Concept
Alternative 4 is the most efficient for Siemens
(most benefits, least process complexity and disadvantages)
Fully integrated
S/4HANA system
Integrated S/4HANA System
(Finance & Logistics)
Alternative 4“Functional Scope” of the
central system extended with
global and Invest. Logistics
Central System + Global Overhead
& Invest. Logistics
(purchasing, goods movement, invoicing), incl. logistics processes
Alternative 3Central Finance with
complete relevant Finance
Complete Finance (integrated planned and
actuals) + CO objects
Period-end Closing and Reporting(excl. Production controlling & chosen controlling processes)
Alternative 2Central Finance with
Asset Accounting
Financial Statements (IFRS + Local)
+ Cost Center
(Interface HR)
Alternative 1Reporting with
Central Finance
Global Financial Reporting
(Interface to Business Consolidation system)Universal Journal only
Line-item level re-postings of financial documents
Source
systems
Asset Accounting *) and
Cost Center Accounting*) depends on chosen asset processes
+
Subledgers AP/AR/Bank **)
& CO (incl. PS / Acct.-based CO-PA)+**) AP/AR/Bank not yet available; on SAP Roadmap
Global Overhead and
Invest Logistics+
Global Production Logistics+
Target
This slide was elaborated together with SAP SE.
Picture shows existing functionality as of 05/16,
planned innovations and future directions for Central
Finance.
Restricted © Siemens AG 2016
November 2016Page 17 CF R / GS IT /
Content
3. SAP S/4HANA Finance – Proof of Concept at Siemens: Case for Action, Objectives and Setup
Use Case B – Approach, Conclusion
Use Case A – Approach, Deliverables and Conclusions
1. Siemens Company Profile
2. SAP ERP Systems Architecture at Siemens
4. The Siemens S/4 HANA approach (FocuS/4 Project)
Objectives and functional scope
Approach and timeline
Restricted © Siemens AG 2016
November 2016Page 18 CF R / GS IT /
Content
3. SAP S/4HANA Finance – Proof of Concept at Siemens: Case for Action, Objectives and Setup
Use Case B – Approach, Conclusion
Use Case A – Approach, Deliverables and Conclusions
1. Siemens Company Profile
2. SAP ERP Systems Architecture at Siemens
4. The Siemens S/4 HANA approach (FocuS/4 Project)
Objectives and functional scope
Approach and timeline
Restricted © Siemens AG 2016
November 2016Page 19 CF R / GS IT /
Proof of Concept project to evaluate S/4HANA Finance for Siemens
proved benefits and stability for Siemens
Product is stable to finish
a proof of concept in time
and in budget
Benchmarking with other
multinational companies
showed similar projects
Benefits for Siemens have
been identified
GS IT and CF R agreed to build a
New Siemens S/4HANA Finance standard solution based on Central Finance
Restricted © Siemens AG 2016
November 2016Page 20 CF R / GS IT /
Maximize use of S/4HANA Finance standard technology by definition of
Finance harmonized end-to-end process standards based on new
technology
standards for Finance related master data models and management
Leverage benefits and use of simplified S/4HANA data model by
simplification of functions and processes flows (“zero waste”)
reduction of Siemens-custom development to a required minimum
increase of usability and leverage usage across any device
Make use of all S4HANA acceleration opportunities, e.g. by
elimination of periodic reconciliation steps (soft / fast close)
using simulations of business options and predictive analysis
further increasing automation (e.g. Robotics)
Create maximum transparency by
central view on all finance information
central ownership for Finance related processes and data
integrated planning and simulation
Standardization
Acceleration
Transparency
Simplification
FocuS/4
Objectives
Restricted © Siemens AG 2016
November 2016Page 21 CF R / GS IT /
Asset
Accounting
G/L
Accounting
Accounts
Receivable(incl. Cash & Bank)
Accounts
Payable (incl. Inter-Company
Clearing)
Master Data
(SAP MDG)
Integrated
Business
Planning for
Finance
Cash
Management 1) Purchasing 2) Non operating
services
Workflow,
Automation &
Tools
Access Control
& Fraud
(SAP GRC)
User
Experience
(SAP Fiori)
System
Integration
(SAP AIF)
Closing &
ReportingControlling
Finance Functions
as of today
New Functionalities
& Further Functions
New cross
Functionalities
Finance Functions Further Functions
New
Consolidation
(ESPRIT)
Risk
Management
(RIC-tools 3))
Bank
Communicator
(finavigate)
Potential Future
Scope Extension
1) SAP module for liquidity forecasting2) includes interface to SAP SRM Application3) Current Risk Mgmt. & Internal Controls solutions
used within Siemens
SAP MDG: Master Data Governance
SAP AIF: Application Interface Framework
SAP GRC: Governance, Risk and Compliance
FocuS/4
Agreed functional scope - our compass for the future
Restricted © Siemens AG 2016
November 2016Page 22 CF R / GS IT /
Content
3. SAP S/4HANA Finance – Proof of Concept at Siemens: Case for Action, Objectives and Setup
Use Case B – Approach, Conclusion
Use Case A – Approach, Deliverables and Conclusions
1. Siemens Company Profile
2. SAP ERP Systems Architecture at Siemens
4. The Siemens S/4 HANA approach (FocuS/4 Project)
Objectives and functional scope
Approach and timeline
Restricted © Siemens AG 2016
November 2016Page 23 CF R / GS IT /
Shadow Finance
FocuS/4
Assumption: Integration of de-central ERP Systems with Central Finance
New Siemens S/4HANA Central Finance SystemG/L Accounting, Asset Accounting, Acc. Payable, Acc. Receivable, Closing & Reporting (IFRS & local GAAP), Controlling
Master Data, Integrated Business Planning for Finance, Cash Management
Procurement
Purchase order, goods receipt,
invoice verification
De-central ERP Systems (Operating Business)
Real time replication
on transaction level
of FI and CO postings (actuals)
with mapping in new data model
with relation to source documents
as audit relevant posting
ProductionGoods movements, plan calculation, stock valuation,
confirmations, overhead, variances, settlement, WIP/ POC,
revenue recognition, production, project and service
controlling
Sales
Sales order, delivery, invoice
Restricted © Siemens AG 2016
November 2016Page 24 CF R / GS IT /
FocuS/4
Agreed five step approach
1) Proposal: Company Code 7092 (CUP System) / Company Codes 7711 + 7411 (KSP, R71 System)2) New Central Finance adoption / connection
New Siemens S/4HANA Finance Standard
Central Finance Solution
Define
standardized
functional scope
for
“New Finance
Standard”
1
Conceptual
blueprint for
Finance Solution
& Central
Finance Setup
based on three
Pilots1) and
proposed go-live
approach
2
Roadmap
planning
and
business
case for
global roll-outs2)
4
Budget
planning
and global
program
initiation
Ongoing maintenance for current ERP systems, adoption of new legal requirements (e.g. IFRS)
Parallel Streams:
S/4HANA “New Finance Standard”
Migrate productive
Pilot (Finance “only”)
3
Establish Central Finance and
connect Logistics pilots
3c
Decision
on global
roll-out
5
Build new Central Finance
System (Greenfield)
3a
3b
Agile
development
Restricted © Siemens AG 2016
November 2016Page 25 CF R / GS IT /
New Siemens S/4HANA Central Finance System
Other
ERPs
Other
ERPs
FocuS/4
Schematic overview of pilot scenario
CUP - System
Logistics
Finance
Other AREs 1)
Pilot ARE 7092
Greenfield
System
until 12/2017
Finance Pilot
ARE 7092
Logistics Pilots
2 AREs
KSP - System
R71 -System
Logistics
Finance
Other AREs
Pilot AREs
7711, 7411
until 04/2018 until 10/2018
Other
ERPs
Roadmap
Mig
rate
Co
nn
ec
tvia
SLT
2)
………
3a 3b 3c
Co
nn
ect
via
SLT
4
1) ARE: German “Abrechnungseinheit”,
Siemens structure reflected by SAP Company Code2) SLT: SAP Landscape Transformation Replication Server
Restricted © Siemens AG 2016
November 2016Page 26 CF R / GS IT /
FocuS/4
Timeline (initial planning)
FY 2016 FY 2017 FY 2018 FY 2019
Phase \ Calendar Month 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1
Functional
Scope
Conceptual
Blueprint
Build Central
Finance System
Migrate Pilot
Finance
Connect
Central Finance
Roadmap &
Business Case
Design (incl. show & tell) – 9M
Analyze – 5M
Build (with prototyping) –9M
Define
1
2
3a
3c
4
Connect & Process Split – 9M Stabilize1)
1) FY end required due to process split
3bMigrate –
4MStabilize –
3M
today