Run simple with our next-generation business suite · of business features such as FSCM Credit Management, GTS Foreign Trade, SFIN Revenue Accounting, new analytical capabilities

Run simple with our next-generation business suite

Uwe Grigoleit, SAP SE

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 3 Internal

It´s time for SAP’s Next Big Thing

R/2

1979

R/3

1992 2015

Innovative Business Solutions

Simplified data model

Modern user experience

Choice of deployment

Non disruptive Journey


SAP S/4HANA 4 Key Enabler to run digital transformation for key enterprises

SAP HANA REAL-TIME &

SIMPLIFIED

SAP FIORI

SAP HANA AS THE

UNDERLYING

PLATFORM

Ÿ OLAP & OLTP MERGE

Ÿ IN-MEMORY

COMPRESSION

Ÿ INCREASE IN SPEED

SIMPLIFICATION OF APPLICATIONS

AND UNDERLYING DATA MODEL

Ÿ NO AGGREGATES & NO INDICES

Ÿ HIGHER FLEXIBILITY &

THROUGHPUT

Ÿ DATA FOOTPRINT REDUCTION

SAP FIORI AS THE

USER EXPERIENCE (UX) PARADIGM;

Ÿ CROSS-APPLICATION USER EXPERIENCE

Ÿ WEB-BASED, ALL DEVICES

Ÿ ROLE-BASED

Ÿ DECISIVE

Native Cloud

10x smaller data footprint

4x less process steps

1800x faster analytics & reporting

7x higher throughput


S/4HANA The Next Generation Business Suite

On-Premise

SoH

S/4HANA Cloud

editions

NW 7.40 NW 7.60

SAP HANA SAP HANA

S/4 Products

S/4HANA core (ERP)

no aggregates, natively HANA, 100% Fiori,

designed for the Cloud

Successfactors

Hybris C4C

• No modifications

• SAP managed

• Quarterly innovations

• HCP for extensions

Concur

Customer /

Partner

extensions

HCP / HCI

Business Networks

Ariba

SAP Business Suite

On-Premise

NW 7.40

AnyDB / HANA

sXYZ

sLOG

sFIN


Investment protection Nondisruptive with compatibility views

Program reading

aggregate

Program reading

aggregate

Compatibility views

calculate on the fly

Aggregate

Header Item

DB tables

Aggregate Aggregate/Index

SAP Business Suite

powered by SAP HANA

SAP S/4HANA


SAP SAP S/4HANA real-time analytics architecture Foundation for new class of applications

Atomic Pre-defined instantaneous

SAP SAP S/4HANA

applications

SAP NetWeaver PLATFORM

SAP HANA Database Layer Physical Tables

Zero latency!

Operational

Reporting

Applications

(incl. insight-to-

action)

Query

Tools

ABAP Layer

SAP HANA Views (Virtual Data Model) Core Data Services (CDS)


Universal Journal in SAP Accounting powered by SAP HANA

− Data redundancy

− Reconciliation efforts

− Low flexibility

ERP Financials on classic database

HANA views

on the fly

+ No reconciliation

+ High flexibility

+ High performance

+ Reduced data volume

SAP Simple Finance powered by SAP HANA

FI Line Items CO Line Items

Totals & Indices Totals & Indices

Processing Analytics

Universal Journal

Processing Analytics


SuccessFactors is the default HCM solution for S/4 HANA

For new and existing customers considering S/4 HANA,

SuccessFactors is the recommended HCM

solution for S/4 HANA:

“Next-generation HCM solution +

Next-generation Business Suite”

SAP ERP HCM

SAP ERP HCM customers may also continue to leverage their

SAP ERP HCM implementations. Simplification is not planned

for SAP ERP HCM


SAP S/4HANA Simple Logistics – Key Innovations

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

Material Requirements Planning

Fast MRP run, and new

working model for MRP

controllers based on decision

support.

Inventory Management


resulting in increased through-

put, flexible analytics at the

most granular level.

Material Valuation

Principle of One, scalable

material valuation capabilities,

utilizing Material Ledger, that

way customers can use multi-

currencies, valuation methods

per different accounting laws

like GAAP.

Available To Promise & Backorder processing

Enhance ERP by advanced

ATP capabilities in APO, new

coding to make it better,

innovation benefit as

functionality will be refreshed.

Capacity Planning

New deployment option

for bringing PP/DS on

ERP, reducing integration

efforts, allowing

seamless master data &

UI harmonization.

Order Management & Billing

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

take actions for any exceptions, information on the

exceptions to resolve the issues, lower TCO due to data

model simplification, support for the most recent versions

of business features such as FSCM Credit Management,

GTS Foreign Trade, SFIN Revenue Accounting, new

analytical capabilities.

Procurement

Increased efficiency in the

Procure-to-Pay processes, new

Analytical Apps & Spend KPI’s,

Ariba Network Integration for

PO Order and IV.


Value Case: Digital transformation in Finance and Logistics

Manufacturing “In Sync” manufacturing

Ensure physical reality in production and representation in IT system are always in sync

Drive more frequent Inventory updates in real time

Business outcome:

Reduce costs with always correct inventory information, less exception handling

Improve product quality with early detection of master data errors

Key innovations:

Finance Soft Close

Improve management and control of operations anytime within period

Allow immediate financial and business decisions (such as transaction-based

revenue recognition, calculation of overheads)

Business outcome:

Revenue and margin increase through real-time profitability analysis

Real-time revenue recognition for goods and services

Key innovations:

Process Enriched Scalability I Real time I Prediction I Simulation

Live Data Granular I Responsive I accurate

User Empowered Instant insight I Contextual information I Personalized experience

Universal journal Intra-period reconciliation Real-time inventory management Inventory information at granular level


Value Case: Business transformation in Industrial Manufacturing Recognize each consumer’s journey as unique and provide a personalized experience on all channels while shopping

Digital Core Digital Economy Digital Transformation

1. Connected Equipment

2. Big data

3. Industry 4.0/ Internet of things


Connected Design Linking telemetry data with operational and design data provides

complete lifecycle visibility for improved design

business outcome: lower cost, higher quality

Serving the segment of one better synchronization of processes, data and tasks across the highly

complex and intertwined manufacturing and channel value chains

Transition from reactive to proactive by detecting and analyzing

patterns and root-causes as never before

Improve agility in response new technologies such as 3D printing

quickly adapting processes

business outcome: higher revenues through faster time 2 market

Connected Manufacturing move from batch to real-time manufacturing processes such as MRP to

always meet demand

get real-time feeds via Internet of Thing to automate operations

business outcome: increase cost efficiency and asset utilization


Value Case: Business transformation in Wholesale Distribution Recognize each consumer’s journey as unique and provide a personalized experience on all channels while shopping


1. Omni-channel Commerce

2. Internet of things

3. Big Data & Insight-driven Wholesale Distribution

Omni-channel customer service Seamless customer relationship management, sales and service across

different channels

Addition of web-channel to enable convenient customer interaction via

an additional channel

business outcome: increase revenue and customer loyalty

Profitability Optimization Full Insight into profitable customers / segments and margin destroyers

Targeted, insight-driven action Optimized and tailored action (e.g.

campaigns, special offers, address via different channels) to best utilize

assets and resources

business outcome: increase margin and profit

Connected Vending Machine Sales Serve your customers with products where and when they need them.

Full insight into buying patterns

Timely and efficient replenishment signals

business outcome: Increased customer loyalty


Value Case: Business transformation in Retail Recognize each consumer’s journey as unique and provide a personalized experience on all channels while shopping


1. Mobile retailing

2. Omnichannel retailing

3. Insight-driven retailing

“omniscient” Retailing • turn into a true customer-centric retail model with a complete view on

customer behavior, transactions, and demand signals across channels

• drive sales through actionable business insight

• provide customer service and seamless omni-channel fulfillment

business outcome: increase revenue and customer satisfaction

optimized assortments and promotions improve merchandising strategies through better assortment and pricing

gain insights into key items and value drivers, detect product affinities

business outcome: eincrease success for product launches and

promotional duce revenue loss due to stock-outs

unified forecasting and out-of-shelf alerts Rely on one powerful forecasting engine for all predictive retail solutions

get intra-day insights into forecast and map against real-time inventory

and stock projection

alert on out-of-shelf products with predictive innovation

business outcome: reduce shrinkage and optimize inventory


SAP S/4HANA – Adoption Roadmap supported by services

Advise/Plan Build/Launch

Identify Value

Identify HANA business scenarios

Define Adoption Roadmap

Design Technical Architecture and

migration scope

Define SAP Simple Finance Roadmap

Migrate to SAP S/4HANA

Based on t-shirt sizes, fixed price,

fixed scope

Additional scope options

e.g., minimized downtime

Implement new

innovations

Installation and data

transition for SAP

Accounting powered

by SAP HANA RDS for SAP ERP Foundation

Extension

+

SAP Rapid Data Migration to SAP

ERP

SAP Support and Premium Engagement (optional)

Migration Factory (deployment on premise / in cloud)

Migrate Existing

New Install

Implement

additional

industry / LOB

packages

See next page

+


Customer adoption – Do I have to do all at once?

Innovation adoption at customers individual pace

• The way to S/4HANA is a roadmap

for the customer.

• Adoption of S/4HANA can be a

step by step process and does not

have to be a big-bang project.

• Customers can decide to separate

technical and business migration,

i.e. move their system to S/4HANA,

but adjust and reinvent business

processes stepwise.

• Along with the stepwise move user

interfaces can be changed

sequentially as well, i.e. staggered

end-user training.

• Moving to the cloud can

substantially speed up the adoption

roadmap of the customer


S/4HANA roadmap – Value examples step by step

Business and user

value

Drive innovation cycles with

Industry and LoB Solutions

Reduce complexity with Simple

Finance

Build S/4HANA

Foundation by migrating to

Suite on HANA

• Increased agility with real-time transaction and analytics

• More relevant and timely insight

• Better corporate alignment

• Faster period closing

• Better forecasting

• Simulation of results or organizational structures

• Real-time sales and cost analysis

• Rapid detection of fraud and non compliance

• Benefit from SAP’s proved industry and LoB solutions

• Simple interaction with business across networks

• Expand with HANA Cloud platform

• Innovate in your industry context at your speed

Add Cloud Services

• Best-in-class solutions for Procurement, Workforce Management, Sales, Service, Marketing …

• Optimized CAPEX vs. OPEX

• Rapid innovation cycles

• Higher user acceptance

• 50% - 70% operational reporting improved productivity

• 2% - 5% manufacturing cycle time reduction

• 1% - 2% WIP stock reduction

• 30% - 40 % productivity improvement

• 1,000x faster reporting (from 15 min to 1 sec)

• 66% reduction in operating cost and increase in productivity and service level

• 100% compliance with regulatory reporting requirements

• 15%+ savings and 40% increased productivity in procurement with Ariba

• 15.2% decreased top talent turnover

• 30% reduction in days sales outstanding

• 65% improvement in employee engagement1)

Source: 1) Top Tier Consulting and SF Research Analysis, 2011.

Proof points


S/4HANA roadmap – Value examples step by step

IT Value

Drive innovation cycles with

Industry and LoB Solutions

Reduce complexity with Simple

Finance

Build S/4HANA

Foundation by migrating to

Suite on HANA

• Simplified landscape

• Simpler data footprint (OLAP & OLTP together)

• More efficient data processing and operations

• Lower cost for financial budgeting and manual report generation

• Simplified reconciliation

• Open innovation platform

• Simpler system configuration with guided configurations

• Natively integrated industry/LoB solutions

• Homogenous business semantics and data models

Add Cloud Services

• Flexibility and scalability

• Built-in integration with On-Premise solutions

• Pre-packaged deployment offers

• Predictability through fixed pricing in HEC

• Flexibility to chose deployment model based your needs

• 49% TCO reduction over 4

years1)

• 3-4x smaller data footprint

• Up to 70% performance improvement of long processes

• 90% less time and effort with automatic revenue reconciliation

• 36% lower budgeting and forecasting cost with rolling forecasts in time and frequency

• 48% lower time (days) to create new reports with plan-actual comparisons

• 3-4 weeks for go-live from scratch

• 3 days to migrate SAP ERP to the cloud

• 11% reduction in TCO with SAP HCM

• 10.8% increased utilization rate

Source: 1) Forrester analysis

Proof points


Live business insight

Role-based experience

All devices

Real-time processes

Digitally connected enterprise

Best business practices


Choice of deployment

Open innovation platform

New profit models Immediate business impact Much lower TCO

SAP S/4HANA – a new business suite for new business outcomes

Decision making Technology Business processes

Run simple with our next-generation business suite

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

Thank you


SAP S/4HANA Extensibility Inside-out and Outside-in Approach

Cloud On Premise

3rd party

Other SAP

cloud

solutions Enable a Fiori and

Mobile user experience

Integrate with other SAP Cloud

Applications and 3rd party solutions

Leverage HCP application services (Mobile

Documents, Output Management etc.)

Full fledged development platform to build

extension applications (Java, XS)

Side-by-side extensibility with SAP

HANA Cloud Platform: Learn from

the outside, weave external content

into your solutions

Side-by-side Extensibility with SAP HCP

Classic

Full access

to ABAP (e.g. SE80)

Managed

ABAP designed for Cloud,

lifecycle-stable

Custom fields

and tables

Change / add

business logic

(rules etc.)

Analytics

extensibility

Custom logic with ABAP

Web Editor (BAdIs)

Key-user Extensibility

In-App Extensibility

In-app extensibility: Context aware

extensions, focus on tight integration


On-premise

SAP S/4HANA Integration Strategy


SAP S/4HANA On-Premise

Licensing Model Traditional licensing Subscription licensing

Infrastructure &

Maintenance model

The customer is in control of deployment and maintenance with

dedicated own IT staff SAP provides the system and is responsible for the system

maintenance.

Speed of Innovation

Customer has full control over speed of innovation, planned

downtimes, changes within the system, changes of the system Cloud customers participate automatically on quarterly

innovation upgrades

Implementation Approach

Highly individual requirements regarding business processes

and customization. Technical know-how is available to

maximize benefits of the On-Premise systems

Willing to follow best-practices with standardized fine-tuning

requirements to participate faster on future innovative

business processes even with limited technical know-how.

Custom Code

Customer requires maximal flexibility in business critical

processes which goes far beyond standardization. Adding

business logic is not enough, even modification of SAP

objects is required

Customer is willing to limit his flexibility by just using the cloud

extensibility functionalities to benefit from a always patched

and upgraded operating system and the opportunity to

introduce new innovations easily.

SAP S/4HANA Cloud Edition

SAP S/4HANA On-Premise versus Cloud


Transition to SAP S/4HANA - Overview

SAP S/4HANA On-Premise (Q4 Delivery – Simple Finance & Simple

Logistics)

SAP S/4HANA Cloud LOB Edition

SAP S/4HANA Cloud Enterprise Edition

Analysis of customer processes & expectations – Implementation of Innovation

Adapt Custom Code to comply to S/4HANA

Adapt to new FIORI User Interface technology

Ge

nera

l T

as

ks

Innovation

User Interface

Custom Code

Transition Approach for existing customer

SAP Data Services using Data Migration Services

for new customer

Automated Data Migration Approach for LOB

Scenarios*

Customer-specific consulting project

*) currently limited Data Migration Content available

SAP need to support the first S/4HANA Cloud Project

Mig

rati

on

Ap

pro

ac

h

New set-up of a Cloud Target System incl. data migration

SAP Landscape Transformation (SLT)

Implementation

Data Migration

Offering of standardized Data Migration Services Services

Additional Migration related Information Additional

Information