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Your First Act in the Intelligent Enterprise:Move to SAP S/4HANA
Lecic Slavisa, S/4HANA Customer Solution Advisor
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Agenda
▪ WHY & WHAT S/4HANA
▪Technical Background and resulting value drivers of SAP S/4HANA
▪DEMO
▪ HOW to MOVE to S/4HANA
▪Approach
▪Options
▪ NEXT STEPS
SAP S/4HANA – The Next Gen, Intelligent ERP
Evolution
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+45 years of ERP leadership and innovation
SAP R/2SAP R/3 1.0SAP R/3 2.0SAP R/3 3.1SAP R/3 4.0SAP R/3 4.6CmySAP.comSAP ERP 6.0SAP S/4HANA
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Insight to Action Intuitive User Experience Intelligence & Automation
SAP S/4HANA: The Guiding Principles
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SAP S/4HANA: Next generation ERP giving complete choice
SAP S/4HANA CloudSaaS
SAP S/4HANA AnyPremiseon any infrastructure
ONE Code-line | ONE Data Model | ONE Semantic | ONE User Experience
UX (role based,
any device,
digital assistant)Intelligence & Automation
S/4HANA In-App
ExtensionsCustom
AppsPartner
Apps
Openness & Extensibility
Industry Best Practices
LoB Coverage
Security & Compliance
DEMO
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SAP S/4HANA
MRP live
Real time and prediction1
Multilevel variant configuration and simulation1
Cash application
Sales order fulfillment
New customer management
and service core optionLegal content management
Report and repair
malfunction
ML and
PredictionNew ProcessNew in SAP
S/4HANANew Insights Integration
SAP Cloud Platform
Key industry function
embedded inside(Automotive, Consumer,
Retail,1 Mill, and so on)
One single invoice
International trade
Predictive Q2 order1
Embedded transportation management
Predictive stock in transit1
Embedded EWM
Advanced ATP DDMRP1
Product engineering and operations
Detailed scheduling (production planning)
Commercial projects
Recipe management
Project and portfolio management
Proposed accruals1
Closing cockpit
Compliance framework
Group reporting1 Multichannel interaction
center
Maintenance planning
overview1
Asset management for
resource scheduling
SAP CoPilot as digital assistant
GDPR tools
Rearchitecture and
improved functions(Chemicals, A&D, Oil and Gas,
Utilities,1and so on)
Details and restrictions
Real-time inventory
SAP C/4HANA
Sales force support1
Capacity planning1
Quotation with product
bundles1
New geographical
enablement
GR/IR monitor1
Digital content processing1Delivery performance1
Responsibility management1
Procurement ManufacturingSupply Chain R&D
Finance
Sales
Service CrossAsset Management Industries
QM overview and analytics
SAP C/4HANA
SAP S/4HANA compared to SAP Business Suite
Central procurement
Overview and analytics
Predictive contracts
Cash discount at risk
Propose material group, contracts, and catalog items
SAP Integrated Business Planning
SAP Digital Manufacturing Insights
SAP S/4HANA Cloud for intelligent product design
SAP Asset Intelligence
Network
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SAP S/4HANA Momentum
Increase in
procurement
efficiency
45%Faster
order lead
times
44%Increase in
employee
productivity
75-80%
SAP S/4HANA
Customers
14,100+Live
Customers*
6,700+
Improvement in
ad hoc reporting
capabilities
80%Accelerated
calculation
time for MRP
85%Visibility of
inventory across
all locations
100%
Reduction in
billing process
time
50%
Planning
efficiency
improvement
90%
* Includes Core ERP and LOB Scenarios
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S/4HANA Projects by Project Type
New S/4HANA customer
68%
Others7%
Re-Implementation
44%
System Conversion
56%SAP ERP customer
transitioning to S/4HANA
25%
PROJECT TYPE
Journey to S/4HANA
Key Transition Scenarios and Decision
Criteria
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1. You should to think
about the future – not
about preserving the past
Current
State Business
Current
State IT
Boundary
Conditions & Principles
Future
State Business
Future
State IT
Roadmap
Future State State Approach – S/4HANA transformation roadmap
2. You should to view
entire situation
3. You should to build an
individual, specific
roadmap
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Future ReadinessYour current system supports today's and
anticipated future master data & org structure
requirements
You seek to fundamentally redesign master data &
org structures
Current System Perception Key asset Innovation blocker
(Perceived) Data Quality Good Bad
Custom Code Well maintained Outdated
Release Level SAP ERP 6.0 and above Below SAP ERP 6.0
Historical Data Need to keep historical data No need to keep historical data
System Conversion New Implementation
Comparing the Paths to SAP S/4HANAAdditional criteria influencing the choice of the transition scenario
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The SAP S/4HANA Manifesto is a white paper that provides detailed
guidance for Senior IT Leadership
Do current business processes support your long-term strategy?
Can you adopt SAP Best Practices or will you retain past customizations?
Is your move to SAP S/4HANA driven by the business or IT?
Can you convert from SAP ERP to SAP S/4HANA in a single step?
Do you require previous transactional data in the new system?
Is landscape consolidation and process harmonization a key value driver?
High or low number of interfaces to other systems (SAP and third-party)?
Can your company sustain a multi-year innovation plan with incremental innovations?
Implementation StrategyEngagement models and white papers help with every step
Answered questions:
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Non-SAP ERP Customer
Transition to SAP S/4 HANA Transition Paths to Destination Options
New Implementation
Selective Data Transition
SAP S/4HANA
Including HEC, IaaS
Your Profile Transition Paths Destination Options
System Conversion
SAP S/4HANA Cloud,
Single Tenant Edition
SAP S/4HANA Cloud
SAP ERP Customer
How much do you want & need to do
Business Process Redesign?
Full Process Redesign
Build a new process template as
starting point
Limited Process Redesign
Reuse existing ECC process
template as starting point
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Implementation Approach
System Conversion Selective Data TransitionNew Implementation
< 5%
aka. Landscape Transformation /
“Bluefield” / Shell Conversion /
etc
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from …
… to
Implementation Approach
• Copy complete system + data
• Reuse of existing implementation
• Add innovation later (LOB / Fiori / ML)
• New install / deploy new practices
• Data migration (harder for old data)
• Full innovation from day one
• Change deployment if wanted
• Large, multi-national corporation
• Multi-SAP ERP instance environment
• Business requirement to harmonize or to do a partial redesign
• changes to Group Currency, 445 to Monthly calendar, and/or changed Fiscal Year
Clean System
SAPS/4HANA
SAPS/4HANA
SAP ECC
SAPS/4HANA
SAP ECC SAP ECCLegacySAP ECC Legacy
System Conversion Selective Data TransitionNew Implementation
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Implementation ApproachHow long does SAP S/4HANA migration take? Live customers analysis
Vast majority of SAP S/4HANA customers
went live in 10-12 months
Duration of projects is largely determined by customer complexity (degree
of change) and implementing partner preferences / tools / methodologies
2020 Analysis customers
Months to implement S/4HANA
1110 123>20
As short as As long as Average
Typical S/4HANA
system conversion
Typical S/4HANA (full suite)
new implementation
4 months
6 months
12 months
14 months
8 months
11 months
Complex S/4HANA (full
suite) implementations at
the largest customers
• Depend on customer specific requirements, skills, and other factors
• We have experiences 20 month implementations and even longer
Costs: scope of SAP S/4HANA implementation, current landscape, degree
of the related business transformation – all influence the cost of
implementation and change management
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SAP Intelligent Tools
For New ImplementationFor System Conversion
Migration Cockpit
more ready-to-use business objects
and object modeling capabilities
Platform Integration Advisor
with 10,000 new interfaces
Custom Code Migration
Automated custom code adaptation,
easy removal of obsolete code
Software Update Manager
for a reduced technical downtime
SAP Readiness Check
Assess functional & technical impact,
understand the effort drivers and plan mitigations
Finance Migration
Finance, Business Partner
ABAP Development Tools
Custom Code Migration App going SaaS,
SAP continues to improve
these tools – Thousands of projects
have used them and helped to
solidify them.
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SAP Readiness Check for SAP S/4HANA
http://www.sap.com/readinesscheck
Add-Ons & Business Functions
• SAP Add-Ons and Business Functions as well
as 3rd party Add-Ons have to be checked for
their compatibility with SAP S/4HANA
• SAP software is listed and rated
• 3rd party software is listed only
Simplification items
• Simplification Items represent application or
architecture changes in comparison to ERP
• About 560 Simplification Items exist for SAP
S/4HANA 1809
• They are grouped by business priority (e.g.
Core Finance) and industry, respectively
S/4HANA Sizing
• To prepare for SAP S/4HANA, a system
sizing is the baseline for further discussions
regarding the future target size
• SAP Readiness Check summarizes the
technical sizing result so that customers can
further engage internally, with SAP or with
partners to discuss the future target system
size
Recommended Fiori Apps
• Fiori apps recommended based on the
transaction usage history in the evaluated system
Custom Code & Custom Dev
• Custom Code analysis vs.
SAP S/4HANA compliance, based on
SAP simplification database
• SAP Readiness Check provides BOM
of affected objects as well as SAP
Custom Development Projects (CDP‘s)
• An in-depth custom code management
activities to follow during project
execution
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Prepare Phase Realize Phase
Remove obsolete code
Custom code
evaluation
Estimate impact on
custom code
Initial SAP
S/4HANA
checks
Tune performance of
critical database queries
Performance
tuning
Check custom code to
SAP HANA and SAP
S/4HANA related changes
SAP HANA &
SAP S/4HANA
checks
Adapt custom code to
SAP HANA and SAP
S/4HANA related changes
Functional
adaptation
Universal Procedure Log
(UPL)SAP Readiness Check SQL Monitor
ABAP Test Cockpit
(ATC)
ABAP Test Cockpit (ATC)
ABAP Development Tool (ADT)
SAP S/4HANA – Custom Code Mitigation
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→ In SAP S/4HANA, Business Partner is the leading object and single entry point to maintain
business partner, customer and supplier master data.
Data Model for Business PartnerNew data model – Motivation
BP
ERP SAP S/4HANA
Customer
Vendor MM – Purchasing
SD – Sales
Specific applications (RE-FX,
FSCM-…, TRM, …), industries
BP
Customer
Vendor MM – Purchasing
SD – Sales
Specific applications (RE-FX, FSCM-
…, TRM, …), industries
SAP S/4HANA for customer
management
SAP Credit Management
(FIN-FSCM-CR)
Embedded EWM
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Customer/Vendor Integration and SynchronizationCustomer/vendor integration in transition scenarios
Preparation Conversion Post-Processing / Test
BP Customers
Vendors
Contacts
Synchronization
ERP SAP S/4HANA
BPCreate
Change
CVI
Synchronization
Customers
Vendors
Contacts
(KN*, LF*)
ERP to
SAP S/4HANA
Conversion
CVI
Mass Sync.
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Downtime optimization approachesOverview
▪ Standard approach
using Software Update Manager (SUM)
with several optimizations
▪ Downtime-optimized conversion approach
downtime is reduced by moving data conversion
and migration partly to uptime (currently only piloted);
(subset: Uptime Migration i.e. downtime-optimized DMO)
see SAP Note 2293733
▪ Near-Zero Downtime Technology approach
allows further reduction of downtime
by executing the conversion on a clone;
it is a consulting service project (aka NZDT),
see SAP Note 693168
Decision about approach
depends on several factors
and should be taken after a
migration planning workshop.(Service component of SAP Value
Assurance for SAP S/4HANA)
Dow
ntim
e
Eff
ort
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Conversion partially moved to uptime for
− FIN and Material Ledger (MM-ML)
& Inventory Management (MM-IM)
− KONV and VBFA tables
▪ Table conversion moved to uptime processing
▪ Field conversion moved to uptime processing (KONV and VBFA tables)
▪ Uptime migration for selected big application tables (which are not part of the data conversion)
Downtime-optimized conversion approachMigration and conversion happens partly in uptime
Ramp
Down
SUM Uptime
ProcessingTechnical SUM Downtime
FI & ML
Data Conversion
Post
Activities
Business
Validation
Ramp
Up
Migration Update Conversion
Maintenace news…
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Extended Innovation Commitment for SAP S/4HANA
Clarity and Choice for SAP Business Suite 7
SAP S/4HANA - sequence of releases in maintenance - 2040
SAP Business Suite 7 core applications1
➢ Mainstream maintenance 2027
➢ Extended maintenance2 (optional) 2028 until 2030 +2%
➢ Customer specific maintenance 2028 onwards
1 Core applications of SAP Business Suite 7 software include SAP ERP 6.0, SAP Customer Relationship Management 7.0, SAP Supply Chain Management 7.0, and SAP Supplier Relationship
Management 7.0 applications and SAP Business Suite powered by SAP HANA; for details and restrictions see SAP Note 2881788 and SAP Note 16484802 Optional and available at a premium of two percentage points on the existing maintenance base for SAP Business Suite 7 for all support offerings
Note 2881788 - End of SAP Business Suite 7 mainstream maintenance
Note 1648480 - Maintenance for SAP Business Suite 7 Software including SAP NetWeaver
Maintenance news I What and How to communicate?2025 / 2027 / 2030
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Release and Maintenance strategy II.
(**) After 2025, SAP will provide mainstream maintenance for the latest three SAP Business Suite 7 Enhancement Packages only. The SAP
Business Suite 7 core applications without any EhP or on a lower EhP than the latest three EhPs require an upgrade to a more recent EhP to
receive maintenance.
➢EHP6 FOR SAP ERP 6.0 (release level: 6.06)
➢EHP7 FOR SAP ERP 6.0 (release level: 6.17)
➢EHP8 FOR SAP ERP 6.0 (release level: 6.18)
➢EHP2 FOR SAP CRM 7.0 (release level: 7.02)
➢EHP3 FOR SAP CRM 7.0 (release level: 7.13)
➢EHP4 FOR SAP CRM 7.0 (release level: 7.14)
➢EHP2 FOR SAP SCM 7.0 (release level: 7.02)
➢EHP3 FOR SAP SCM 7.0 (release level: 7.13)
➢EHP4 FOR SAP SCM 7.0 (release level: 7.14)
➢EHP2 FOR SAP SRM 7.0 (release level: 7.02)
➢EHP3 FOR SAP SRM 7.0 (release level: 7.13)
➢EHP4 FOR SAP SRM 7.0 (release level: 7.14)
➢SAP is committed to provide its customers a long-term planning security for SAP S/4HANA with a maintenance commitment until 2040 for the
SAP S/4HANA product line, including e.g. new releases, regular maintenance deliveries such as feature packages or support packages for SAP
S/4HANA.
➢SAP provides a series of releases for which SAP provides maintenance over a period of time. The change is that this is now committed to be in
place until end of 2040.
➢ Is the recently announced SAP Human Capital Management for SAP S/4HANA on-premise edition solution also committed until 2040?
➢Yes, via regular maintenance deliveries including e.g. releases, feature packages or support packages.
What customers start now …
small steps that will smooth the transition
to S/4HANA
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Recommended Immediate Next Steps
Run the SAP Readiness Check
to get fast and early insights for
your S/4HANA project.
Decide on your transition
approach (system conversion
vs. new implementation), or at
least clarify your decision
criteria.
Look into FIORI quick wins.
Avoid the temptation to continue
only with SAPGUI!
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S/4HANA Knowledge Assets on SAP.COM:
▪ https://blogs.sap.com/tag/s4hana-rig
[>1.7 mio page views]
▪ SAP Fiori for SAP S/4HANA wiki▪ (Link: https://wiki.scn.sap.com/wiki/display/Fiori/SAP+Fiori+for+S4HANA )
openSAP courses*
▪ S/4HANA Extensibility [17.0K learners](Link: https://open.sap.com/courses/s4h7 )
▪ S/4HANA System Conversion [54.6 K
learners](Link: https://open.sap.com/courses/s4h11 )
▪ Key Technical Topics in a System Conversion to
SAP S/4HANA [24.7K learners](Link: https://open.sap.com/courses/s4h14 )
▪ Key Functional Topics in a System Conversion to
SAP S/4HANA [21.9K learners](Link: https://open.sap.com/courses/s4h15 )
Lessons Learned from S/4HANA customers worldwide
How you benefit from what we do
* = Values from January 2020
Contact information:
Slavisa Lecic
S/4HANA Customer Solution Advisor
https://www.linkedin.com/in/slavisalecic/
Thank you.
