Simple Finance Open SAP W2 Pdf

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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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