Transformation Plan 1.0 Wieland ... - assets.dm.ux.sap.com · This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP

PUBLIC

TipTop4Digital S.A.

August 2019

Transformation Plan 1.0 for TipTop4Digital S.A.Outcome summary of SAP S/4HANA Adoption Starter

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mentioned in this presentation. This presentation and SAP's strategy and possible future

developments are subject to change and may be changed by SAP at any time for any

reason without notice. This document is provided without a warranty of any kind, either

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fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for

errors or omissions in this document, except if such damages were caused by SAP

intentionally or grossly negligent.

Disclaimer

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Management Summary Scope and Approach Why? What? How? Appendix

Approach

⚫ Conversion vs. Greenfield evaluation shows tendency for

conversion approach

⚫ The current system version supports a 1-step conversion

of the leading system from a technical perspective,

however the requirement of historic data from

consolidated systems needs to be explored to define

transition approach and data migration strategy

Sequencing

⚫ Conversion cycles ERP to S/4HANA for leading system:

◼ PRD to HANA Sandbox

◼ Dev to HANA Dev

◼ QA to HANA QA

◼ PRD to HANA Sandbox *2 (mock cutover & dress rehearsal)

◼ PRD Conversion

Cycles for system consolidation steps to be defined once

transition approach & data migration strategy finalized

Project plan

Overall project plan foresees S/4HANA transition incl. system

consolidation and cloud transitions. IBP planned before the

move to S/4HANA while Concur will be added after the

S/4HANA transition. CRM system to remain unchanged as

part of this project, C/4HANA to be explored later.

Overall time schedule early 2023 for S/4HANA, IBP, Concur.

Innovation Case

⚫ Based on the SAP Innovation point of view, 5 innovation

scenarios selected for further evaluation. The scenarios

reach from Optimize (e.g. Cash Application) to Extend

(e.g. Predictive Quality) to Transform (e.g. Business

outcome-driven co-innovation)

Efficiency Case

⚫ 3 significant value driver identified based on reference

improvements seen by other SAP customers (e.g. Reduce

days in inventory)

⚫ Analysis of the current performance shows significant

improvement opportunity in several areas such as

automation rates (Sales Order Creation at 10%, Outbound

Delivery Creation at 13%)

⚫ A Quick Value assessment shows a significantly positive

business case of 7M€ recurring potential cumulative value

with “Reduce Finance Cost” as the main driver

⚫ Compared to a reference project, the transition is

assessed to have a TCO impact of 17,5% - mainly based

on reduced implementation cost

Target Products

⚫ Current architecture approach of regional instances to be

changed to Single Global Instance architecture

⚫ 3 consolidation opportunities identified, 1 regional

consolidation, 2 feature consolidations and the new

addition of Concur

⚫ Main product recommendations to shift from ERP to SAP

S/4HANA, overall 9 recommended products.

⚫ 0 currently used ERP capabilities not yet with confirmed

coverage by recommended landscape (further analysis

recommended). 4 additionally required capabilities

selected for the recommended landscape.

Target Instances

⚫ Technical analysis (readiness check) results:

◼ Add-on compatibility: 5 unknown items from 3rd party

vendors

◼ High number of 98 relevant simplification items (deep dive

analysis recommended).

◼ High number of custom code to be adapted (deep dive

analysis recommended)

◼ Readiness check for system TT4 indicates ~6.5TB initial

memory requirement, not including additional requirements

for consolidation of regions or features. Detailed sizing to be

carried out to determine necessary hardware size

Transformation Plan 1.0 for TipTop4Digital S.A. – Management Summary

Next steps / action items ⚫ Setup Business Case WS in CW20

⚫ Follow up on BP Discovery action items

WHAT? Technical evaluation HOW? Transformation evaluationWHY? Business evaluation

Management Summary

⚫ Set up project for in depth analysis of simplification items by CW 23

⚫ Include above scheduling into overall follow-up program

Scope and Approach

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S/4 Adoption Starter – Scope & Packages

Key answers to

Why? Business view

Innovation Case

Efficiency Case

◼ Innovations

◼ New Capabilities

◼ Value Driver & Aspiration

◼ Benefit Case

◼ Baseline + Potential

◼ Effort Estimate

What? Technical view

Target Products

Target

Instances

◼ Target Architecture

◼ Product Recommendation

◼ Consolidation Opportunities

How?Transformation

view

Sequence &

Approach

◼ Transitions and Approach

◼ Start Point / Migration Path

◼ Conversion vs. Greenfield

◼ Readiness to start

◼ Relevant Accelerators

◼ Next Level Services to plan for

Packages (Tools/Services applied)

Foundation

(mandatory)

1. Scoping Digital

Core

2. Transformation

Navigator

3. Innovation

Scenario

Check

Business

4. Business

Process

Discovery

5. Quick Value

Assessment

6. Effort Estimate

Transformation

7. Readiness Check

8. Conversion vs.

Greenfield

9. Start Point /

Migration Path

Scope and Approach

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S/4HANA Adoption Starter – 90-day schedule

Scope and Approach

Fo

un

dati

on

(m

and

ato

ry)

◼ Prework (Solman, Plugin, S-

User, Role identification,

Data Collection)

◼ Kickoff Meeting, Process

Explanation

◼ Scoping

◼ Scoping Digital Core

◼ Transformation Navigator**

◼ Innovation Scenario Check

Bu

sin

es

s ◼ <NewTool>

◼ Quick Value Assessment

◼ Effort Estimate

Tra

ns

form

ati

on

◼ Readiness Check

◼ Conversion vs. Greenfield

◼ Start Point / Migration Path

◼ End of Analysis

◼ Synthesis Workshop

◼ Plan 1.0 available

Scoping Analysis / DiscoveryAlignment/

ConsolidationPreparation

Fo

un

dati

on

(m

and

ato

ry)

Bu

sin

es

sT

ran

sfo

rma

tio

n

Transformation Design v 1.0 agreed

Scope Defined

Draft Transformation Design

Process Explained

Q&A Q&A

A+B

1. Scoping Digital Core

2. Transformation Navigator

3. Innovation Scenario Check

4. <NewTool>

5. Quick Value Assessment

6. Effort Estimate

7. Readiness Check

8. Conversion vs. Greenfield

9. Start Point / Migration Path

◼ Prework (Solman, Plugin, S-

User, Role identification, Data

Collection)

◼ Kickoff Meeting, Process

Explanation

◼ Scoping

1. Scoping Digital Core

2. Transformation Navigator

3. Innovation Scenario Check

4. Business Process Discovery

5. Quick Value Assessment

6. Effort Estimate

7. Readiness Check

8. Conversion vs. Greenfield

9. Start Point / Migration Path

◼ End of Analysis

◼ Synthesis Workshop

◼ Plan 1.0 available

Half Time check point

2 months 3 weeks1 week

Q&A Q&A

Q&A

Customer only,

SAP support on demand

1:n interaction between

SAP and customer

1:1 interaction between

SAP and customer

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Why? Business view

What? Technical view

How?Transformatio

n view

S/4 Adoption Starter – Summary of Results

Scope and Approach

Business evaluation – Why?

Why = Innovation case + Efficiency case⚫ Industry innovation trends

⚫ Relevant innovation scenarios

⚫ Additional future capabilities

⚫ Relevant value drivers and aspiration

⚫ Overall value summary

⚫ Baselining result and tracking approach

⚫ Effort estimate

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Innovation Case

Analysis result Conclusion

⚫ Based on the SAP Innovation point of view, 5 innovation scenarios selected for further evaluation. The

scenarios reach from Optimize (e.g. Cash Application) to Extend (e.g. Predictive Quality) to Transform (e.g.

Business outcome-driven co-innovation)

⚫ Topics identified deeper analysis will be done

in next project steps

Efficiency Case


⚫ 3 significant value drivers identified based on reference improvements seen by other SAP customers (e.g.

Reduce DII Days in Inventory)

⚫ QVA needs to be validated with a complete

Business Case

⚫ Analysis of the current performance shows significant improvement opportunity in several areas such as

automation rates (Sales Order Creation at 10%, Outbound Delivery Creation at 13%)

⚫ A Quick Value Assessment shows a significantly positive business case of 7M€ recurring potential

cumulative value with “Reduce Finance Cost” as the main driver

⚫ Compared to a reference project, the transition is assessed to have a TCO impact of 17,5% - mainly based

on reduced implementation cost


Why?

WHY? Business evaluation

Next steps / action items ⚫ Setup Business Case WS in CW20

⚫ Further analysis of innovation cases

⚫ Revisit budget decision

⚫ Follow up on BP Discovery action items

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Management Summary Scope and Approach Why? What? How? Appendix10


Challenged strategic models

Incumbent strategies like proximity to customers, feedstock, or in-

house intellectual property are heavily threatened by volatile

energy and raw material prices, mass customization, supply chain

complexity, and geopolitical risks.

Chemical companies are transforming from purely selling chemicals to

delivering new, differentiating, customer-centric services and business

outcomes.

Margin pressure

Limited organic growth opportunities, increasing competition from

emerging countries, and heterogeneous product portfolios limit the

capabilities to achieve sustainable margins.

Chemical companies are starting to adopt strategic agility as a core

competence, looking at mergers and acquisitions as a major vehicle for

portfolio consolidation and growth. They further strive for touchless operations

as a first step to an autonomous enterprise.

Regulation and sustainability

Increasing regulations and legislation influence the chemical

industry more than ever. Companies are pressured to demonstrate

strong environmental and product stewardship and safe

operations.

Chemical companies need to rapidly understand and respond to impacts from

regulatory requirements. Concepts like the circular economy provide new

opportunities to collaborate and innovate as ecosystems.

Digitalization

Digital technology offers unprecedented levels of connectivity,

granularity, and speed in accessing, processing, and analyzing

data. The Internet of Things, machine learning, and blockchain

now become commercially viable options for business model and

process innovation. Furthermore, digitalization attracts new talent,

thus addressing the issue of an aging workforce and the growing

skills shortage in the chemicals industry.

Early adopters of innovative technologies have the unique opportunity to

master market and workforce challenges and secure a sustainable advantage

by acting as game changers and digital disruptors.

Chemical Companies Face New Challenges and

Opportunities amid Digital Disruption

Leading chemical companies use market dynamics to create and capture new business opportunities.Leading chemical

companies use digital

technologies to create the

intelligent enterprise and:

• Reimagine their business

models to grow revenue

and shareholder value

• Create innovative

business processes and

services to enhance

customer experience and

loyalty

• Drive efficiency in

operations and customer

engagement to protect

their bottom line

• Minimize resources,

energy, and

environmental impact

along the entire value

chain to protect brand

and reputation

Concept

Why?

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Our Point of View: To Achieve These Strategic Priorities, Leading Chemical

Companies Are Becoming Intelligent Enterprises

The intelligent enterprise enables employees to focus on higher-value outcomes and to invent new business models and revenue streams.

Optimize and extend the value of current processes Transform with next-generation business processes

By applying intelligent technologies such as the Internet of Things (IoT), artificial intelligence (AI), machine learning, and advanced analytics, leading chemical companies transform into event-driven businesses. Event-driven

businesses automate repetitive tasks, enable employees to focus on higher-value tasks, and allow companies to invent new business models and revenue streams by monetizing data-driven capabilities and applying core

competencies in new ways.

Optimize existing

processes for more

efficiency or reliability

Extend current business

processes beyond efficiency

gains to capture new sources

of value

Transform the company’s

value chain or business

model to capture new

revenue streams

Industrial automation

Business process

automation

Digital transformation

Intelligent enterprises

Pro

du

ctivity

Time

High-value tasks

Repetitive tasks

Automation

Concept

Why?

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Optimize existing

processes for more

efficiency or reliability

Extend current business

processes to capture

new sources of value

Transform company’s

value chain or business

model

Optimize Extend Transform

SAP recommends to combine three horizons to build a ”Intelligent” strategy: Optimize existing processes, Extend current business processes and Transform the company’s value chain.

Based on the SAP Leonardo scenario inventory tailored to the customer’s industry, a preselection of a relevant shortlist for further evaluation can be made.

The shortlist should fully reflect all strategic consideration of the customer as well as the ability to quickly create first concrete productive installations.

Based on the discussion, the customer has shortlisted the following scenarios:

TipTop4Digital S.A. has selected a number of innovation scenarios for

further evaluation along the optimize, extend and transform horizons

TipTop4Digital S.A. – Intelligent Innovation Scenarios – Shortlist

⚫ Predictive Quality

⚫ Asset Intelligence Network

⚫ ( Product Integrity )

⚫ Business outcome-driven co-

innovation

⚫ ( Collaborative research and

development )

⚫ Cash Application

⚫ Integrated Operations Management

⚫ ( Customer Retention )

⚫ ( Resume matching )

Why?

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Selected value drivers and aspiration

Why?

Line of Business / Technology Value Driver Aspiration Range Your Aspiration

Finance Reduce audit cost 20.0 - 40.0 40

Finance Reduce finance cost 19.0 - 80.0 50

Manufacturing Reduce days in inventory 8.0 - 20.0 20

Sourcing and Procurement Reduce days in inventory 8.0 - 20.0 20

Sourcing and Procurement Reduce finance cost 19.0 - 80.0 50

Supply Chain Reduce days in inventory 8.0 - 20.0 20

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Improve working capital Increase process automation Reduce old transactional backlog Reduce non-standard order types

Automation Rate: Sales order creation 10%

Automation Rate: Outbound delivery

creation13%

Automation Rate: SD invoice creation 92%

Automation Rate: Purchase Requisition

creation65%

Automation Rate: Purchase order creation 0%

Automation Rate: Stock Transport order

creation90%

Automation Rate: MM invoice creation 43%

Automation Rate: Process order creation 50%

Lead time from customer item creation to

clearing 51d

Late customer payments 20%

Lead time from vendor item creation to

clearing 22d

Early vendor payments 33%

Unrestricted-use stock not moved 15m

Quality inspection stock not moved 7k

Blocked stock not moved 10k

Sales orders open & overdue for delivery 318

Outbound Deliveries overdue for GI

posting65

Open & Overdue customer items in FI-AR 765k

Open & overdue purchase requisitions 0

Open & overdue purchase order items 10k

Open & overdue vendor items in FI-AP 1,2k

Process orders overdue for deletion flag 521k

PM orders in phase ‘released' 29k

Open items on FI-GL accounts 1,1m

Inbound Deliveries overdue for GR posting n/a

Shipments without completion 3,6k

Sales order types never used 5 of 30

Return order types never used 1 of 1

Credit memo request types never used 0 of 2

Debit memo request types never used 0 of 3

Production / Process order types never

usedn/a

PM / CS order types never used 0 of 2

Internal order types never used n/a

High potential seen for DSO and DII

reduction.

Good opportunity to optimize

logistics and procurement by

increasing the respective process

automation.

Good potential to improve

procurement & financial close

activities

Few areas where the majority of

customer specific configuration data

has never been used.

Business Process Discovery: Summary of improvement potential

Why?

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Long term Enterprise Value Roadmap:

achieving 80% to 100% of Value Potential

Quick Value: 30 to 40% of

Benchmark Value Potential

1 Legacy

3Suite

4HANA

2 ERP

Landscape Optimization:

50 to 60% of Value Potential Incremental SAP HANA

Value Amplification

• Very Fragmented

IT Landscape

• Many Legacy and

Home Grown Systems

• Numerous Integrations

• Very Low Master Data Quality

• No Standard Template

• Fragmented ERP with

Multiple Instances

• Multi Vendor Environment

• Many Integrations

• Low Master Data Quality

• Standard Template, partially rolled-out

by region / LoB

• Consolidated Business Suite

(by division / region or global)

• Selected Cloud Solutions

• High Master Data Quality

• Global Template where possible; Limited

Regional Configuration / Customization

(where necessary)

• HANA Enterprise Platform

• Suite on HANA Instances

• BW on HANA and High Performance

Applications

• Broad use of Cloud solutions

• Minimal integration /

Reduced complexity /

Rapid process innovation

• Scalable and secure

• Automation and ease of

Administration

• Managed Services with

clear Service Levels

• Low Visibility & Agility

• Reports are out of date,

not trusted by management

• Low awareness of business Process

Excellence

• Top quartile TCO

• Substantial manual effort to achieve

regional and global visibility & business

agility

• Some standardized business process

Improvement

• Median TCO

• One source of the truth for

most ERP data sources

• Increased Business Agility

• Global Best Practice

Business Processes

• Bottom quartile TCO

• Real Time Visibility

• Integrated / predictive analytics on all data

• Very High Agility

• Competitive Business Process Enhancement

• Lower TCO

• Public, Private or Hybrid

cloud subscriptions

models

• Shift from CAPEX to

OPEX

• Lowest TCO possible

TE

CH

NO

LO

GY

BU

SIN

ES

S

5Cloud

Lower TCO with higher

scalability and flexibility

Software Vs Process Improvement

SAP share of Potential Business Value

as identified in KPI benchmark vs. peers

30%

Landscape Maturity of TipTop4Digital S.A.

Why?

Sales Asset

Management Finance Marketing Commerce

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Potential Cumulative Value

Key Observations

• Sample text if needed

can go here

• Example: Comparable

Store Sales increase of

1.5% = $970M

Estimated Value of SAP Solutions for TipTop4Digital SA

Values in (€ '000)

€ 6,917

€ 1,500

€ 7,953

€ 1,500

€ 1,341 € 1,494 FinanceImpact

Area

€ 19 € 19 Reduce Audit Cost SG&A

€ 1 € 1 Reduce Days to Close Annual Books SG&A

€ 450 € 450 Reduce Finance Cost SG&A

€ 7 € 8 Reduce Losses Due to FraudPre-tax

Margin

€ 850 € 1,000Reduce Maintenance & Repair Expenses (for Real

Estate)SG&A

€ 14 € 16Reduce Uncollectible Accounts Receivable Write

Offs

Pre-tax

Margin

€ 4,728 € 5,470 Manufacturing Impact Area

€ 310 € 370Reduce Fixed Asset Service and Maintenance

CostsCOGS

€ 35 € 42 Reduce Inventory Carrying CostPre-tax

Margin

€ 350 € 420 Reduce Project Cost OverrunPre-tax

Margin

€ 1,200 € 1,400 Reduce Project Delays COGS

€ 33 € 38 Reduce Scrap Value COGS

€ 2,800 € 3,200 Reduce Total Manufacturing Costs COGS

€ 2,209 € 2,350 Supply Chain Impact Area

€ 1,500 € 1,500 Reduce Days in InventoryWorking

Capital

€ 55 € 65 Reduce Inventory Carrying CostPre-tax

Margin

€ 130 € 160 Reduce Order Management Cost SG&A

€ 26 € 31 Reduce Overall Supply Chain Planning Cost COGS

€ 380 € 450 Reduce Revenue LeakagePre-tax

Margin

Value from each business area

One-Time Benefits (Conservative)

Annual benefits (Conservative)

One-Time Benefits (Likely)

Annual benefits (Likely)

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Effort Estimate – selected accelerators by TipTop4Digital S.A.

Why?

*

* Complexity of total landscape not covered in tool; only SAP S/4HANA considered.

→ Further tool runs required to include SAP C/4HANA.

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Effort Estimate – result for TipTop4Digital S.A.

Why?

Technical evaluation – What?

What: Target Products → Target Instances⚫ Mid-term target architecture

⚫ Scope-based product recommendations

⚫ Definition of digital core

⚫ Instance consolidation plan

⚫ Backlog of technical preparation needs

e.g. custom code, simplifications

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Transformation Plan 1.0 TipTop4Digital – Management Summary

What?

WHAT? Technical evaluation

Next steps / action items ⚫ Set up project for in depth analysis of simplification items by CW 23

⚫ Set up project to determine final sizing by CW 25

⚫ Set up project for in depth analysis of custom code by

CW 23

Target Products


⚫ Current architecture approach of regional instances to be changed to Single Global Instance architecture Evaluate to move as much as possible satellite

systems to S/4HANA Core⚫ 3 consolidation opportunities identified, 1 regional consolidation, 2 feature consolidations and the new

addition of Concur.

⚫ Main product recommendations to shift from ERP to SAP S/4HANA, overall 9 recommended products. ⚫ 0 currently used ERP capabilities not yet with confirmed coverage by recommended landscape (further

analysis recommended). 4 additionally required capabilities selected for the recommended landscape.

Target Instances


⚫ Technical analysis (readiness check) results:

◼ Add-on compatibility 5 unknown items from 3rd party vendors

◼ High number of 98 relevant simplification items (deep dive analysis recommended)

High number of custom code to be adapted (deep dive analysis recommended)

◼ The readiness check for system TT4 indicates the initial memory requirement for this system is ~6.5TB. This does

not include additional requirements for the consolidation of regions or features, detailed sizing should be carried

out to determine the necessary hardware size

Set up project for in depth analysis of topics

identified

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Finance

Commerce

Manufacturing

R&D / Engineering

Sales

Sourcing&ProcurementSupply Chain

Analysis Result Current Landscape

TT3

SAP ERP 6.0

CCP

SAP CRM

SCP

SAP SCM

AP0

SAP APO

Supply Chain

PPC

SAP ERP

TT4

SAP ERP 6.0

Finance

Manufacturing

R&D / Engineering

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Selected Products and Capabilities with Recommendations

What?

Current Product Capability selected Deployment Preference Recommended Capability Recommended Product

Employee Travel Safety Cloud Employee Travel Safety (Concur) Concur Travel

Expense Management Cloud Expense Management (Concur) Concur Expense

Legal Content Management On Premise Legal Content Management (S/4 OP) SAP S/4HANA

Single Sign-On On Premise Single Sign-On SAP Single Sign-On

SAP Customer Relationship Management

Audience Targeting and Segmentation Cloud Audience Targeting and Segmentation (Marketing CLD) SAP S/4HANA Cloud


Campaign Management and Optimization Cloud Campaign Management and Optimization (Marketing CLD) SAP S/4HANA Cloud


Channel Marketing On Premise Channel Marketing SAP Customer Relationship Management


Loyalty Management On Premise Loyalty Management (CRM) SAP Customer Relationship Management

SAP ERP Accounts Payable On Premise Accounts Payable (S/4 OP) SAP S/4HANA

SAP ERP Accounts Receivable On PremiseAccounts Receivable with Automated Line Item Matching (S/4 OP, Leonardo)

SAP S/4HANA

SAP ERP Chargeback Management On Premise Chargeback Management (S/4 OP) SAP S/4HANA

SAP ERP Collections Management On Premise Collections Management (S/4 OP) SAP S/4HANA

SAP ERP Commodity Procurement On Premise Commodity Procurement (S/4 OP) SAP S/4HANA

SAP ERP Contract Accounting On Premise Contract Accounting (S/4 OP) SAP S/4HANA

SAP ERP Corporate Close On Premise Corporate Close (S/4 OP) SAP S/4HANA

SAP ERP Credit Evaluation and Management On Premise Credit Evaluation and Management (S/4 OP) SAP S/4HANA

SAP ERP Dispute Resolution On Premise Dispute Resolution (S/4 OP) SAP S/4HANA

SAP ERP E-Invoicing On Premise E-Invoicing (S/4 OP) SAP S/4HANA

SAP ERP Electronic Bill Presentment and Payment On Premise Electronic Bill Presentment and Payment (S/4 OP) SAP S/4HANA

SAP ERP Entity Close On Premise Entity Close (S/4 OP) SAP S/4HANA

SAP ERP Financial Accounting On PremiseFinancial Accounting with intelligent GR/IR Account Reconciliation (S/4 OP, Leonardo)

SAP Invoice and Goods Receipt Reconciliation

SAP ERP Financial Close Governance On Premise Financial Close Governance (S/4 OP, PC) SAP S/4HANA

SAP ERP Financial Reporting On Premise Financial Reporting (S/4 OP) SAP S/4HANA

SAP ERP Indirect Tax On Premise Indirect Tax (S/4 OP) SAP assurance and compliance software for SAP S/4HANA

SAP ERP Invoice Management On Premise Invoice Management (OpenText S/4 OP) SAP S/4HANA

SAP ERP Invoice Processing On Premise Invoice Processing (S/4 OP, Leonardo) SAP S/4HANA

SAP ERP Purchase Contract Management On Premise Purchase Contract Management (S/4 OP, Leonardo) SAP S/4HANA

SAP ERP Purchase Order Processing On Premise Purchase Order Processing (S/4 OP) SAP S/4HANA

SAP ERP Purchasing Rebate Management On Premise Purchasing Rebate Management (S/4 OP) SAP S/4HANA

SAP ERP Requirements Processing On Premise Requirements Processing (S/4 OP) SAP S/4HANA

SAP ERP Revenue and Cost Accounting On Premise Revenue and Cost Accounting (S/4 OP) SAP S/4HANA

SAP ERP Service Purchasing and Entry On Premise Service Purchasing and Recording (S/4 OP) SAP S/4HANA

SAP Supply Chain Management Demand Planning Cloud Demand Sensing and Planning (IBP) SAP Integrated Business Planning

SAP Supply Chain Management Production Planning On Premise Constraint Based Production Planning (S/4 OP) SAP S/4HANA

SAP Supply Chain Management Production Scheduling On Premise Production Scheduling (S/4 OP) SAP S/4HANA

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Current Architecture Archetype(Landscape Type)

Target Architecture Archetype(Landscape Type)

Characteristics of current customer

Architecture(Customer specific details)

Characteristics of target customer

Architecture(customer specific details)

⚫ 2 central systems for North America (TT3) and

Europe (TT4)

⚫ Satellite Systems (Global) for Supply Chain (SCP,

AP0), Procurement (PPC) and Customer

Relationship Management (CCP)

⚫ Consolidation of Core systems into 1 single instance

as business processes only differ slightly & volumes

are not business critical. (S4P)

⚫ Integrate Satellite Systems into Core as much as

possible.

⚫ Supply chain to be split across S/4HANA and IBP.

⚫ New cloud solution for Concur to be added.

⚫ Keep CRM separate for now and explore C/4HANA

cloud later

Target Architecture Evolution for TipTop4Digital S.A.

Consolidate Regions

Consolidate Features

What?

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System Consolidation Opportunities for TipTop4Digital S.A.

... by Region ... by Feature

Current system:

⚫ TT3, TT4

Target system:

⚫ S4P

Ratio:

⚫ 2 → 1

Current system:

⚫ SCP, PPC, AP0

Target system:

⚫ S4P, IBP

Ratio:

⚫ Aspiration: 3 → 2

Ease of implementation:

⚫ Medium effort, use of common template

Business Value:

⚫ Reduced coordination effort

⚫ Facilitate cross region procurement,

manufacturing and selling

IT Value:

⚫ Operations costs

⚫ Infrastructure costs

Ease of implementation:

⚫ tbd.

Business Value:

⚫ Improved business visibility

IT Value:

⚫ Operations costs

⚫ Infrastructure costs

What?

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Business Role and Requirements

Functional Area

Need for

differentiation

(compared to

competitors)

Happiness with

status quo

Radicality of

expected future

change (Business

perspective)

Importance of

privacy

Motivation to

invest in Digital

Transformation

Estimated

transition effort**involvement of functional area

due to product changes

Comment

Commerce medium need high happiness low radicality high importance Low highC/4HANA to be

explored later

Finance low need high happiness low radicality low importance medium medium

Manufacturing high need medium happiness medium radicality high importance high medium

R&D/ Engineering high need High happiness low radicality high importance high low

Sales medium need low happiness low radicality medium importance low highC/4HANA to be

explored later

Sourcing and Procurement high need medium happiness low radicality low importance low medium

Supply Chain medium need low happiness medium radicality high importance high highAligned on the

anticipated effort

What?

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Cloud Recommendation for TipTop4Digital S.A.M

otiva

tio

n o

f fu

nction

al a

rea

to

inve

st

in D

igita

l

Tra

nsfo

rma

tion

Cloud On Premise

Cloud Cloud + SAP Cloud Platform

Need for Differentiation

Implication:

⚫ Sourcing & Procurement: Mismatch between Need

for Differentiation / motivation to invest in Digital

Transformation → Clarification needed

⚫ Only 2 functional areas require OnPremise due to

need for differentiation. Discuss possible scenarios,

e.g. Functional split

⚫ Supply Chain may be split between S/4HANA for

gATP and PP/DS and Integrated Business Planning

for DP and SNP

Finance

Sales

Manufacturing

R&D/ Engineering

Procurement

Supply Chain

Commerce

What?

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Target Landscape: TipTop4Digital S.A.

CCP

SAP CRM

Commerce

Sales

S4P

(Global)

SAP S/4HANA (OP)

Finance

Manufacturing

R&D/Engineering

Supply Chain

Procurement

What?

IBP

Supply Chain

SAP IBP

CNR

SAP Concur

All Functional Areas

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SAP Readiness Check for TipTop4Digital S.A.

Readiness Check completed

for TipTop4Digital S.A.

⚫ Five third-party vendors

behind the AddOns with

status “unknown”. Vendors

need to be contacted for

compatibility check

⚫ Relatively high number of

relevant Simplification Items –

follow up required before start

of the project

⚫ ~400 Fiori Apps recommended

for adoption – some lighthouse

scenarios recommended.

⚫ Sizing – Initial memory

requirement for HANA is

~6.5TB.

What?

Transformation evaluation – How?

How: Approach + Sequencing → Project plan⚫ Conversion vs. Greenfield

⚫ Single step vs. Multi-step

⚫ Alignment with business

requirements e.g. downtime

⚫ Sequencing of product transitions

⚫ Sequencing of instance transitions

⚫ Cadence within one instance

transition

⚫ Overall phasing

⚫ Remaining in-depth analysis

⚫ Detailed work schedule for phase 1

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How?

HOW? Transformation evaluation

Next steps / action items ⚫ Include above scheduling into overall follow-up program

⚫ Clarify licensing topics

Approach

Analysis result

⚫ Conversion vs. Greenfield evaluation shows tendency for conversion approach

⚫ The current system version supports a 1-step conversion of the leading system from a technical perspective, however

the requirement of historic data from consolidated systems needs to be explored to define transition approach and

data migration strategy

Sequencing

Analysis result

Conversion cycles of ERP to S/4HANA for leading system:

◼ PRD to HANA Sandbox

◼ Dev to HANA Dev

◼ QA to HANA QA

◼ PRD to HANA Sandbox *2 (mock cutover & dress rehearsal)

◼ PRD Conversion

Required cycles for system consolidation steps should be defined after transition approach and data migration

strategy is finalized.

Project plan

Overall project plan foresees transition to S/4HANA including system consolidation and cloud transitions.

IBP is planned before the move to S/4HANA while Concur will be added after the S/4HANA transition.

CRM system to remain unchanged as part of this project but C/4HANA will be explored later.

Overall time schedule until early 2023 for S/4HANA, IBP and Concur.

⚫ Evaluate requirement of historic data and define data migration strategy

⚫ Refine project plan based on action item results

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Conversion vs Greenfield: The seven “guiding” questionsQuestions influencing the choice of the transition scenario to SAP S/4HANA for TipTop4Digital S.A.

1 2 3 4 5

Can you move to SAP S/4HANA in a one-step procedure?

R/3 4.x <ECC 6.x Non-Unicode >=ECC 6.0X

Do your current business processes support long-term strategy of the company?

Redesign of core business processes Current Processes are a good long term

fit

Can you adopt the Best Practices to modernize Core Business Process? Or are you planning to take over existing custom applications?

Model Company / Back to Standard Redevelop Custom Applications Take over custom

Is Landscape consolidation a key value driver for S/4 adoption?

4+ systems to consolidate 3 2 No Consolidation 1:1

Do you require previous transactional data available in S/4?

No Yes

Technical / IT funded project or Business funded project

Business IT

Number of interfaces to other systems (Non-SAP and SAP)

few/little complexity Many/high complexity

New

Im

ple

men

tati

on Syste

m C

on

vers

ion

As answer to questions, position green marker in the fitting column (1-5)

1

2

3

4

5

6

7

How?

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Transition Pattern for TipTop4Digital S.A.

How?

3. Guided design for business need

3. Guided design for business need

based on Model Company

2. Continuity & Innovation Path

incl. consolidation phase

2. Continuity & Innovation Path

1. Technical Migration Path incl.

consolidation and Cloud phase

1. Technical Migration Path incl.

consolidation phase

1. Technical Migration Path incl. Cloud

phase

1. Technical Migration Path

Business

Conversion

YES

Is it an IT Driven

project?

Conversion

approach

favored?

Instance

Consolidation?

Guiding Questions

Invo

lve

me

nt o

f lin

es-o

f-b

usin

ess

low

h

igh

Implications on Migration Proposed Transition Pattern

1. Conversion of leading S/4 instance

2. Consolidation onto S/4 frontrunner

3. Business Process Optimization

after S/4 step

4. Cloud move after S/4 step




after S/4 step


2. Business Process Optimization after

S/4 step


2. Business Process Optimization after

S/4 step

3. Cloud move after S/4 step

1. Cloud move before S/4 step




after S/4 step




after S/4 step

1. Start with Business Process

Redesign


3. New implementation of main S/4

4. Use of model company

1. Start with Business Process

Redesign


3. New implementation of main S/4

4. Use of best practice content

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Phase

Main Activities

⚫ Customer Vendor

Integration

⚫ General ledger

migration

⚫ Foreign trade/GTS

⚫ Archiving

⚫ Fit-to-standard

⚫ Business

Configuration

⚫ Reporting/Forms/

Workflows

⚫ Interfaces

⚫ User management

⚫ Data

⚫ Easiest System

⚫ Highest value

System

⚫ Remaining

systems starting

with highest value

[For details see

conversion template]

⚫ Easiest

consolidation

⚫ Highest value

consolidation

⚫ Remaining

consolidations

⚫ Fit-to-standard

⚫ Business

Configuration

⚫ Reporting/Forms/

Workflows

⚫ Interfaces

⚫ User management

⚫ Data

⚫ Startpoint: Value

Drivers, BPA-KPIs

and baseline from

Adoption Starter

⚫ Setup of regular

monitoring

⚫ Improvement

project (ongoing)

Key drivers of

Duration

⚫ #Archiving objects

⚫ # Simplification

Items

⚫ Deployment mode

(OnPremise/HEC)

⚫ # Cloud transitions

⚫ # Interfaces

⚫ # systems


Items• Financial asset

accounting (D)

• Material ledger (D)

⚫ Target System size

[TB]

⚫ Depth of usage

(#modules/capabili

ties)

⚫ # connected

systems

⚫ Amount of Custom

code

⚫ Deployment mode

(OnPremise/HEC)

⚫ # systems to be

consolidated


Items not covered

⚫ Depth of usage not

covered

⚫ # connected

systems not

covered

⚫ Amount of custom

code not covered

⚫ Deployment mode

(OnPremise/HEC)

⚫ # Cloud transitions

⚫ # Interfaces

⚫ # Value Drivers

⚫ # BPA KPIs

Transition Pattern 2: Continuity & Innovation

SAP Adoption

Starter

Follow-up/

Clean-up

Conduct 1st Wave

of Cloud

Transitions (before

ERP Migration)

Conversion of

main systems

ERP→SAP

S/4HANA

System

consolidation

Conduct 2nd Wave

of Cloud Transitions

(after SAP

S/4HANA transition)

Continuous

Business

Process

Optimization

if needed if needed if needed

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Management Summary Scope and Approach Why? What? How? AppendixR

ela

tive s

ize o

f benefit

hig

her

low

er

Relative Ease of Implementation

easierharder

Cloud Sequence Determination

Key influences considered:

⚫ Expected benefit from implementation

⚫ Dependency with SAP S/4HANA project

C/4HANA

Derived sequence of Cloud Transition: C/4HANA before S/4HANA and IBP after

Phase I

Phase II

Phase III

How?

IBP

Concur

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High Level Project Planfor Transition Pattern 2: Continuity & Innovation

How?

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Conversion Cycles

Detailed timeline for SAP S/4HANA implementation – conversion

PRD to SAP S/4HANA

“Sandbox”

Source / Target

TT4 Copy → future production

S/4HANA Certified HW (SBX)

Steps

a) Homogeneous system copy

of TT4 to SBX

b) Conversion of SBX to

targeted end-state

Purpose

⚫ Final dress rehearsal

⚫ Validate E2E business

downtime

⚫ Validate final cookbook

⚫ Validate cutover plan

PRD to SAP S/4HANA

“Sandbox”

Source / Target

TT4 Copy → future production

S/4HANA Certified HW (SBX)

Steps


of TT4 to SBX


targeted end-state

Purpose

⚫ Mock cutover

⚫ Optimize/verify E2E

business downtime

⚫ Finalize cookbook

⚫ Finalize cutover plan

⚫ Testing environment:

◼ Infrastructure testing

◼ Post-cutover operational

performance testing

PRD Conversion

Source / Target

TT4 → S4P (conversion and

rename)

Steps

Conversion of TT4 to targeted

end-state

Purpose

⚫ Establish new SAP

S/4HANA PRD environment

Note

⚫ Execute end-to-end (E2E)

business downtime

precisely as defined within

the cutover plan

⚫ Execute technical steps

precisely as defined in the

cookbook

QA to SAP S/4HANA

QA

Source / Target

Q01→ Q01

Steps


of Q01 to QT1

b) Conversion of Q01 to

targeted end-state

Purpose

⚫ Build temporary production

support quality assurance

environment (QT1)

⚫ Establish SAP S/4HANA

QA environment (Q01)

⚫ Enhance cookbook

⚫ Testing environment:

◼ Integration

◼ Functional regression

◼ Operational readiness

◼ User acceptance

DEV to SAP S/4HANA

DEV

Source / Target

D01→ D01

Steps


of D01 to DT1

b) Conversion of D01 to

targeted end-state

Purpose

⚫ Build temporary production

support development

environment (DT1)

⚫ Establish SAP S/4HANA

development environment

(D01)

⚫ Configure, Test SAP

S/4HANA

⚫ Refine cookbook

Note

⚫ Conversion steps will differ

from production

PRD to SAP S/4HANA

“Sandbox”

Source / Target

TT4 Copy → SBX HW

Steps


of TT4 to SBX


targeted end-state

Purpose

⚫ Test software installation,

HANA migration, SAP

S/4HANA data model

conversion with a

production copy

⚫ Configure, Test SAP

S/4HANA

⚫ Create a conversion

cookbook

⚫ Execute multiple technical

iterations to become familiar

with the process of

converting the production

system (if required)

Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6

How?

Next steps and open action items

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Transformation Design – Communication plan to get to v1.0

Person to reach out to Person responsible from team Deadline

Jacques Arnaud Michelle Departieux October 2019

How?

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⚫ Send back Plan v1.0 to SAP 90-days coordinator at least 3 days prior to final Plan review with SAP

⚫ Offer for R/3 conversion to S4 sandbox

⚫ After sandbox conversion, analysis, project plan, ev. road map

Next steps

How?

Appendix

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Tool-based output documentation Dashboards/ Share Drives/ Calculation Sheets

Significant supporting documentation available –

please contact your 90-day coordinator for access

SAP Transformation Navigator

Business Process Discovery

Quick Value

Assessment

BACKUP

Adoption Starter Jam page Readiness Check Dashboard

Effort Estimate Tool

Appendix

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S/4HANA Adoption Starter – Overview of scope and engagement levels

Appendix

# TopicSelf service

Level 0

Outside-in expert guidanceLevel 1

Joint PlanningLevel 2

Joint ExecutionLevel 3

1 Scoping the Digital Core Landscape design principles frameworkLandscape design principles framework

Consumed via Discovery Workshop

Innovation

Strategy &

Roadmap

Technical

Architecture &

Infrastructure

Data Migration Execution

2 Innovations & Innovation CaseTransformation Navigator based on

Product Roadmap

Discovery Session based on

Industry Templates and

existing Innovation Scenarios

Innovation Strategy and Roadmap

Innovation Advisory and Engineering

including Innovation Discovery and

Innovation Proof of Concept

3a Efficiency Case – ValueTransformation

Navigator

Quick Value

Assessment

Outside in Business Case

based on QVA

Full Business Case & Benchmarking

w/ customer validation

Value realization service (BPA &

Process Improvement and

Benchmarking)

3b Efficiency Case – Effort Transformation

Navigator

Explore SAP S/4

HANA TCOSAP TCO Calculator

Joint Business Case with ROM Build &

Run Costs

Joint Business Case tracking

Validate cost changes

4 Process Reality Baseline & Tracking Transformation NavigatorBusiness Process Discovery incl.

Improvement heat map

BPA Process Improvement –

Plan & Build

BPA + Process Improvement –

Run

5Alignment IT-Business –

Functional coverageTransformation Navigator

Discovery Workshop +

Industry Templates

Value & Implementation Strategy

incl. Fit Gap Analysis

Model Company based process

model with mapped deviations

6 Readiness to start / necessary prep Readiness CheckDiscussion of Readiness Check results

+ recommendation by SAPMigration Planning Migration Factory and VAP

7Conversion vs.

Greenfield approach7-Question evaluation framework

7-Question Framework,

consumed via Discovery WorkshopValue & Implementation Strategy

Migration Factory

Model Company based

implementation

8Starting point Determination/

Migration Path Selection

SAP Transition Patterns and high level

project planning

SAP Transition Patterns and high level

project planning consumed via

Discovery Workshop

Innovation Strategy & Roadmap

VAP – Data Migration Design

Migration Planning

Scope of SAP S/4HANA Adoption Starter

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License ImplicationsBACKUP

Appendix

Current ProductRecommended

Product

License Material

(Number)Units Type

Contract

Conversion

Product

Conversion

Cloud Extension

Model

SAP Customer Relationship

ManagementSAP S/4HANA Cloud 8007082 FUE Users Subscription - - -

SAP Customer Relationship

ManagementSAP S/4HANA Cloud 8005616 Flat Fee Subscription - - -

SAP ERP SAP S/4HANA 8007179 FUE Users Subscription - - -

SAP ERP SAP S/4HANA 8007179 FUE Users Subscription - - -

SAP ERP SAP S/4HANA 7019722 Users License - - -

SAP ERP SAP S/4HANA 7019722 Users License - - -

SAP ERP SAP S/4HANA 7018654 Users License Yes No No






SAP ERP SAP S/4HANA 7018538 Flat Fee License Yes No No

SAP ERP SAP S/4HANA 7018538 Flat Fee License Yes No No

SAP Supply Chain ManagementSAP Integrated Business

Planning8003059 Revenues Subscription No No Yes







SAP Supply Chain Management SAP S/4HANA 8007179 FUE Users Subscription - - -

SAP Supply Chain Management SAP S/4HANA 7019722 Users License - - -

SAP Supply Chain Management SAP S/4HANA 7018654 Users License Yes No No



SAP Supply Chain Management SAP S/4HANA 7018538 Flat Fee License Yes No No

Industrial Machinery and Components SAP S/4HANA 7019504 Transactions License - - -

Industrial Machinery and Components SAP Single Sign-On 7017299 Users License - - -

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