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Strategic Choices for S/4HANA deployment Your road to SAPs Digital Core Marco Scheepmaker, EMEA HANA Services CoE March 28, 2017 Public Once you have decided on S/4HANA there are still many things to consider before an implementation can start: What roadmap scenarios are available What factors should you consider when choosing the way forward How can you get the different parts of the business onboard

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Strategic Choices for S/4HANA deploymentYour road to SAPs Digital Core

Marco Scheepmaker, EMEA HANA Services CoE

March 28, 2017

Public

Once you have decided on S/4HANA there are still many things to consider before an implementation can start:

• What roadmap scenarios are available

• What factors should you consider when choosing the way forward

• How can you get the different parts of the business onboard

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public

Disclaimers

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of

SAP. Except for your obligation to protect confidential information, this presentation is not subject to your license agreement or

any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this

presentation or any related document, or to develop or release any functionality mentioned therein.

This presentation, or any related document and SAP's strategy and possible future developments, products, and/or platforms,

directions, and functionality are all subject to change and may be changed by SAP at any time for any reason without notice.

The information in this presentation is not a commitment, promise, or legal obligation to deliver any material, code, or

functionality. This presentation is provided without a warranty of any kind, either express or implied, including, but not limited to,

the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This presentation is for

informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in

this presentation, except if such damages were caused by SAP’s intentional or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially

from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as

of their dates, and they should not be relied upon in making purchasing decisions.

Define Direction

How can you get Business onboard

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Public

How can you get Business OnboardDiscover, Prepare and Explore

Identify most beneficial areas of your

current value chain impacted by SAP

S/4HANA

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 1Internal

S/4HANA on-premise edition, 1511 ShipmentView on S/4HANA Enterprise Management and S/4HANA Products (excl. S/4HANA Suite/Extensions)

SAP S/4HANA

SERVICE

SAP S/4HANA

HUMAN RESOURCES

SAP S/4HANA

MANUFACTURINGSAP S/4HANA

SUPPLY CHAIN

SAP S/4HANA

MARKETING

SAP S/4HANA

FINANCE

SAP S/4HANA

SALES

SAP S/4HANA

SOURCING &

PROCUREMENT

SAP S/4HANA

ASSET

MANAGEMENT

SAP S/4HANA

RESEARCH &

DEVELOPMENT

The D

igital C

ore

Enterprise Management

Basic Order Promising

Material Requirements Planning

Production Planning

Production Scheduling

Core Distribution Requirements Planning

Goods Issue

Goods Receipt

Basic Warehouse Management

Maintenance Planning and Scheduling

Maintenance Execution

Production Processing

Basic Subcontracting

Basic External Processing

Quality Management and Compliance

Project Financials Control

Project Logistics Control

Product Development for Discrete

Product Design for Process Industries

Sales Master Data Management

Contract Management

Order Management and Processing

Billing and Invoicing

Sales Planning and Monitoring Analytics

Claims, Returns, and Refund Management

Classification and Segmentation

Supplier Evaluation

Sourcing

Contract Management

Requirements ProcessingPurchase Order Processing

Service Purchasing

Procurement Analytics

Self-Service Requisitioning

Invoice Processing

Time Capturing

Employee Central Connectivity

Payments and Bank Communications

Cash and Liquidity Management

Debt and Investment Management

Financial Risk Management

Financial Shared Services

Credit Evaluation and Management

Electronic Bill Presentment and Payment and E-Invoicing

Dispute Resolution

Collections Management

Financial Close Governance

Corporate Close

Cost Planning

Credit and Collection Management

Product Compliance for Discrete Industries

Product and Chemical Compliance for Process

Industries

Safety Data Sheet Management

Dangerous Goods Management

Global Label Management

Convergent Invoicing

Environment, Health, and Safety

Compliance and Risk Management

Incident Management

Accounting

Entity Close

Financial Reporting

General Ledger

Cost Management

Asset Accounting

Inventory AccountingAccounting Payable

Accounts Receivable

Contract Accounting

Cost Accounting

Revenue Accounting

Cost Management

Profitability and Cost Analysis

Service Planning and Scheduling

Service Execution and Delivery

Service Billing and Settlement

Service Parts Planning and Procurement

Service Parts Warehousing

Service Parts Fulfillment

Warranty Management

Service Initiation

Service Control

Technical Assets, Structures, History

Service Task List and Catalogues

Scope and concept of

SAP S/4HANA

with improved features,

capabilities and innovations

Business Scenario

Recommendations Report

based on current transactions

with outlining initial value of

transaction and capabilities in

use

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 6

Innovation Scope of SAP Simple Finance

Accounting and

Financial Close

Financial Planning

and Analysis

Treasury and

Financial Risk Management

Collaborative

Finance Operations

Enterprise Risk and

Compliance Management

Receivables

Management

Enterprise,

Risk Management

Controls and Compliance Management

Access Governance

AccountingDevelop and Translate Strategy

Planning, Budgeting

and Forecasting

Payments and Bank Communications

Cash and Liquidity Management

Profitability and Cost Management

Monitoring and Reporting

Entity Close

Corporate Close

Reporting and Disclosure

Financial Close

Governance

Collaborative

Invoice to Pay

Travel Management

Financial Shared Services

Debt and Investment Management

Commodity Risk Management

Financial Risk

ManagementInternational Trade Management

Fraud Management

Audit Management

Real Estate Management

SAP Simple Finance

New or significantly renewed solutions

Other solutions

SAP Accounting is the core of SAP Simple Finance

Heat map

with prioritized solution areas /

capabilities where benefits can

be identified and further

investigation recommended

Point-of-view Exercise

with workshop findings

according to the understanding

of the current situation, value

drivers and the broader

innovation roadmap

Get SAP S/4HANA incremental benefits

matched to your business scenarios and

today’s usage of SAP ERP

Define initial ambitions on

innovations and transformation paths

for a clear Point of View

Include Business (Process) Owners within your

Discovery for SAP S/4HANA

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Public

SAP S/4HANA Enterprise ManagementFigures based on projects supported by the Customer Care Program & Regional Implementation Group

Status as of December 2016

Small, medium, and large companies

28%

67%

5%

<100 users 100 – 10.000users

>10.000 users

~24%

~73

~3%Transition scenarios

Conversion

New Implementation

LandscapeTransformation

0

10

20

30

40

50

60

Fin

an

ce

an

dC

on

tro

llin

g

Pro

cu

re to

Pa

y

Ord

er

to C

ash

Pla

n t

oP

rodu

ce

Hum

an

Reso

urc

e

Req

ue

st to

Se

rvic

e

Scope in terms of process groups

Sum of MediumBusiness Priority

Sum of High BusinessPriority

thereof ~50% leveraging “SAP Best Practice”

Insights from engaging

with SAP S/4HANA

implementation projects

550+

1750+

100+

Overall # of Livecustomers

Overall # of active/liveprojects

Overall # of 1610projects

Overall # of

licensed

customers:

5400+

Translate Direction

What transition scenario’s do we have

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Public

Your way to SAP S/4HANA3 transition scenarios

Example: Complete conversion of an existing

SAP Business Suite system to SAP S/4HANA

Example: New or existing SAP customer

implementing a new SAP S/4HANA system

with initial data load

Example: Consolidation of current regional

SAP Business Suite landscape into one global

SAP S/4HANA system or selective data

migration

ERP System

- Region A -

ERP System

- Region B -

ERP System

- Region C -

ERP System

New

Implementation

ERP System

Non-SAP

SystemSAP S/4HANA

Cloud

SAP S/4HANACloud

System

Conversion

Landscape

Transformation

SAP S/4HANA

On premise

On premise

On premise

Your landing page: http://www.saps4hanahub.com/i/675945-choosing-your-path-to-sap-s-4hana/24

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Public

Your way to SAP S/4HANAScenario 1 – New Implementation

Scenario description

New implementation of SAP S/4HANA e.g. for

customers migrating a legacy system.

Benefits for the customer

● New implementation of industry-leading

Business Suite

● Reengineering and process simplification

based on ready-to-run business processes

and reference solution delivered with the

product

Target group

● SAP Business Suite customers or net new

customers

Option: Data

Migration from

Legacy System

Legacy

Any customers legacy

system

SAP Fiori

SAP HANA

SAP S/4HANA Best Practices

SAP S/4HANACloud Edition

SAP S/4HANAOn-premise Edition

Main Steps

● Installation SAP NetWeaver Application Server ABAP 7.50 based on SAP HANA

● Installation of SAP S/4HANA system

● Deployment of SAP Best Practices

● Migration of data from SAP or non-SAP system to SAP S/4HANA system

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Public

SAP Activate – The S/4HANA Innovation FrameworkTo ensure Best Practice Adoption and Faster Implementation

© 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 9Your landing page: http://sapsupport.info/support-innovations/sap-activate/ and https://roadmapviewer-supportportal.dispatcher.hana.ondemand.com/#/activate

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Public

SAP ActivateMigration content and cockpit

Data Migration • The data migration activities can be executed based on the cloud

implementation cockpit

• Based on the selected business scenarios relevant data migration

objects are proposed.

• Existing customer can connect their SAP Business Suite system.

For new customer a template based approach can be used

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Public

Your way to SAP S/4HANAScenario 2 – Landscape Transformation

Scenario description

Customers who want to consolidate their

landscape or carve out selected entities or

processes into a SAP S/4HANA system.

Benefits for the customer

● Stay with current business processes and

move gradually to S/4HANA innovations

● Harmonized business processes and shared

master data through consolidation

● Carve out of single entities of the company

to SAP S/4HANA and leverage process

simplification

Target group

● SAP Business Suite customers with multiple

SAP ERP or SAP Business Suite on SAP

HANA systems, or hybrid cases

Start Release

AnyDB or SAP HANA

SAP ERP Core

Start Release

AnyDB or SAP HANA

SAP ERP Core

e.g. Central Finance

SAP Fiori

SAP HANA

SAP S/4HANA Best Practices

Main Steps

● New installation of a SAP S/4HANA, on premise edition system

● Migration of selected data to SAP S/4HANA

● Additional migration steps that are based on SAP Landscape Transformation

SAP S/4HANACloud Edition

SAP S/4HANAOn-premise Edition

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Public

SAP S/4HANA landscape transformation scenarios SAP LT enabled solutions

Tailored offerings for selective data migration requirements

(for example based on time slice, plant or other objects)

can be requested as project solution or service.

Consolidation Migration of Business Units

(Company Code)

Migration of selected applications

(Central Finance)

Typical use cases for a Landscape Transformation

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Public

Your way to SAP S/4HANAScenario 3 – System Conversion

Scenario description

Customers who want to change their current

system into a SAP S/4HANA system.

Benefits for the customer

● Migration without reimplementation

● No disruption for existing business

processes

● Re-evaluation of customization and existing

process flows

● Transformation over time

Target group

● SAP Business Suite customers with SAP

ERP or SAP Business Suite on SAP HANA

as starting point

SAP Fiori

SAP HANA

SAP S/4HANA Best Practices

Start Release

ERP 6 / ERP 6.0, EhP 0-7

AnyDB / SAP HANA

SAP ERP Core

Main Steps (Guided Procedure)

● Update to SAP NetWeaver Application Server ABAP 7.50

● Migrating of the database to SAP HANA (in case, the SAP Business Suite

system is not yet on SAP HANA).

● Conversion of the existing SAP Business Suite system to SAP S/4HANA, on-

premise edition (Data Transition from the old structures to the new structures

using inbuilt tools)

SAP S/4HANAOn-premise Edition

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Public

t

Prepare phase Realize phase

T2 T3 T4

Simplification list SAP S/4HANA

Maintenance

plannerPrechecks

Custom code

migration worklist

t6

Application-specific

follow-on activities

T1

System

requirements

t5

Software update

manager (SUM)

Database

migration

Software

update

Data

conversion

Your landing page: https://blogs.sap.com/2016/11/02/sap-s4hana-system-conversion-at-a-glance/

SAP S/4HANASystem conversion: guided procedure

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Public

SAP S/4HANATool based conversion approach

(SAP GUI) SAP Fiori

SAP HANA

SAP S/4HANA Enterprise Core

release 1511 or 1610

SAP GUI

Any DB / SAP HANA

SAP ERP core

Components (SD / MM / PP / …)

Maintenance

planner

SAP Business Suite SAP S/4HANA

Software update

manager (SUM)

Database

migration

option (DMO)

Simplification

list

Conversion

pre-checks

Custom Code

Worklist

Semantical tasks

Technical tasks

Your landing page: https://blogs.sap.com/2016/11/02/sap-s4hana-system-conversion-at-a-glance/

Translate Direction

What other factors to consider

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 17Public

SAP S/4HANA Project LearningsManage all parts properly

Customers choose their own path

Diversity of drivers - in all cases deployment of

SAP S/4HANA causes impact

Overarching exercise

Decision makers

Key users and end users

Project leads, solution architects, functional

and technical experts

Attention to change management

Knowledge transfer is a key element

Projects

Fiori User Experience

Technical

Prerequisites

Simplifications

Deployment,

Configuration,

Extensibility

Tools,

Methodology

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 18Public

SAP S/4HANA

Compatibility Scope

Cloud Editions

Understand the DifferenceSAP ERP and SAP S/4HANA

SAP Business Suite

On-Premise EHP7/8

ERP

SAP

S/4HANA

Finance

On-Premise EHP7/8

SAP S/4 HANA Finance as

innovation package

Classical ERP on any DB

incl. HANA

Compatibility scope to

support migration

Cloud Qualities also

available On-Premise

SAP S/4HANA

SAP HANA only

On-Premise

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 19Public

The SAP HANA Enterprise

Cloud (HEC) offers

individually sized

infrastructure and enhanced

managed services as

additional, customer specific

options to software licenses

On premise deployment of

S/4 HANA will continue to

deliver new innovations,

leveraging the potential of

in-memory technology and

new user interfaces

ONEPrice

ONE Contract

Application license subscription

SAP HANA platform subscription

Infrastructure and Services

Application Management Service

Cloud Enterprise Support

Applications

(BYOL/subscription)

SAP HANA

(BYOL/Subscription)

Infrastructure

Application

Management Service

Custom HECOn Premise

Applications

(S/4HANA Enterprise

Mgmnt., engines,

(users))

SAP HANA

(Runtime or

Enterprise Edition)

S/4HANA CloudPrivate Option

Standardized Packages

NoModifications

S/4HANA CloudPublic Option

Standardization, TCO and scalability of

the cloud combined with the full functional

scope, extensibility and geographical

reach of the S/4HANA on premise solution

Highly standardized, multi-tenant

cloud services covering selected LoB

and industry scenarios and a

comprehensive ERP scope

Understand the DifferenceDeployment options tailored to your needs

More information: Gartner Report on HEC and S/4HANA Cloud Trial

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 20Public

Understand the DifferenceIntegration and Extensibility

SAP HANA Enterprise CloudPrivate Managed Cloud

SAP Cloud Platform(PaaS)

SAP Cloud Apps(SaaS)

SAP-solutions and customer

specific developed solutions

based on SAP HANA

Build

New Cloud Apps

Extend

On-premise &

Cloud Apps

Integrate

Everything

SAP Cloud Infrastructure

More information: S4HANA - Extensibility for Customers and Partners

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 21Public

SAP S/4HANA RoadmapUnderstand Project Planning, Activity Groups and Skills Requirements

Your landing page: https://roadmapviewer-supportportal.dispatcher.hana.ondemand.com/

Take Direction

What is changed in our engagements

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 23Public

Quick-start your digital transformation Secure your full journey

Discover Prepare Explore Realize Deploy Run

Discovery and

Roadmap

Workshop for SAP S/4HANA

SAP S/4HANA Value Assurance ServicePlan and safeguard | Technical implementation | Migrate and implement | Innovate and optimize

Full SAP Engagement with Front and Back Office services and support

Methodology, best practices, guided configuration and tools

SAPACTIVATE powered by SAP Solution Manager 7.2

Your landing page: http://sapsupport.info/offerings/s4hana-service-packages/

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 24Public

SAP S/4HANA Value Assurance Engagement Can be adjusted to your specific needs

Engagement foundation

Plan and safeguard or

Plan and prototype

Customer /

Partner

Technical

implementation

Customer /

Partner

Technical

implementation

Migrate and implement

Innovate and optimize

Orange = SAP / Grey = Customer/Partner

Package I Package II Package III

Technical

implementation

Migrate and implement

Package IV

Leve

l o

f S

AP

in

vo

lve

me

nt

Customer /

Partner

Customer /

Partner

Plan and safeguard Plan and safeguard Plan and safeguardRoadmap and

Discovery Workshop

for SAP S/4HANA

Involvement in line

with the roles of all

stakeholders

Secure Plan and

Safeguarding

Accelerate Technical

Implementation

Accelerate Functional

RealizationInnovate

Your landing page: Access Deep Dive Details

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 25Public

SAP S/4HANA Value Assurance FoundationTight connection to SAP with the Control Center Framework

Right experts available anytime

Remote access to SAP experts of all kinds and

developers globally

Quick reaction in end-to-end lifecycle

From value proposition to value realization and

innovation

Risk evaluation and mitigation

Cross coordination for complex requests across

multiple expert areas

The right SAP experts involved with a single contact to discuss all topics related to

your S/4HANA implementation, including expertise, skills, quality gates and issue.

Mission Control Center

Innovation Control Center

at customer site

at SAP

Single Contact

Your landing page: http://sapsupport.info/support-innovations/control-centers/ /

Don’t wait! Start now!

Marco Scheepmaker

EMEA HANA Services [email protected]

Get started with your service package

Start your smooth journey to SAP S/4HANA with

SAP Digital Business Services today

Build your SAP S/4HANA journey

Define your SAP S/4HANA scenarios with the help of the

Roadmap and Discovery Workshop