Digital Core: The Road to S/4HANA and Beyond

Rhod Joyce, Snr. Director, S/4HANA CoE

AGENDA

Evolution to S/4HANA

Why S/4HANA?

Digital Core
Roadmaps: S/4HANA and Industry

How to Convert to S/4HANA

Intelligent Enterprise Applications

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SAP S/4HANA only 1 year after the launch

3.700+ 300+
Licensed Customer
Scenarios
1.266+ Live Customers
Active Customer Projects

In all 25 industries & 74 countries

Canadian customers
• McInnis Cement
• Groupe Ocean Inc.
• Cameco Corporation
• Convergent Information Systems
• Limited Brands Inc.

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Evolution of SAP Business Suite
Aligned with the Evolution in Hardware

ERP
In-memory Application
R/3
Suite on HANA (SoH)
R/2 S/4HANA
Distributed (3 tier) Architecture

Mainframe

1979 1992 2004 2015

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SAP’s Vison for the Digital Economy
S/4HANA as the Digital Core

Digital economy Digital core Digital transformation

Internet
of Things

Segment of 1
Big Data
User empowered

At scale
Instant insight I Contextual information I Personalized experience
Business
Process enriched Lot size of 1
networks
Scalability I Real time I Prediction I Simulation

Live data
Devices
Granular I Responsive I Accurate
No latency
Social
SAP S/4HANA
networks SAP S/4HANA
On-premise Edition
Cloud Edition

People
Traditional core value play Leading-edge processes I Integrated system

SAP S/4HANA value play Digital transformation of business models

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SAP S/4HANA (1610 Scope)
Current Go To Market Format

SAP S/4HANA FINANCE SAP S/4HANA HUMAN RESOURCES SAP S/4HANA SOURCING & SAP S/4HANA MANUFACTURING SAP S/4HANA SUPPLY CHAIN
PROCUREMENT
• Digital Operations for Manufacturing • Integrated Business Planning
• Responsive Manufacturing • Global Batch Traceability
• Core Human Resources And Payroll • Supplier Collaboration • Production Operations • Extended Warehouse Mgmt.
• Governance, Risk, and Compliance • Transportation Mgmt.
• Talent Mgmt. • Business Network
for Finance
• Time and Attendance Mgmt. • Guided End-User Buying
Suite • Human Capital Analytics • External Workforce Management
• Financial Planning and Analysis
• Extended Warehouse Mgmt.
• Accounting and Financial Close
• Response and Supply Orchestration
• Treasury Mgmt.
Products • Receivables Mgmt.
• Invoice Mgmt. and Accounts Payable
• Operational Purchasing
• Accounting and Closing Operations • Time Recording • Collaborative Sourcing and Contract Mgmt. • Production Orchestration and • Inventory and Basic Warehouse
• Accounting • Invoice and Payables Mgmt. Execution Mgmt.
• Cost Mgmt. and Profitability • Supplier Management • Quality Mgmt. • Production Planning
Analysis • Procurement Analytics

Digital Core Enterprise Management

• Service Mgmt. *
• Order and Contract Mgmt. • Maintenance Mgmt. • Product Development and Project
• Service Master Data Mgmt.*
• Service Parts Mgmt.* Control
• Service Agreement Mgmt.* • Production Engineering

• Sales Planning and Performance • Billing and Revenue Innovation • Asset Operations and Maintenance* • Enterprise Portfolio and Project Mgmt.
Products Mgmt. (ICM) Mgmt. (BRIM) • Environment, Health, and Safety • Commercial Project Mgmt.
• Compliant Product Lifecycle Mgmt.*

Suite
Cloud for Sales Cloud for Service S/4HANA Marketing Cloud • Digital Asset Network • Digital Operations for R&D
Service Engagement Center Cloud for Customer
Commerce
SAP S/4HANA MARKETING AND SAP S/4HANA RESEARCH &
SAP S/4HANA SALES SAP S/4HANA SERVICE COMMERCE SAP S/4HANA ASSET MANAGEMENT DEVELOPMENT
INDUSTRIES
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*(partially) Compatibility 7
SAP S/4HANA Enterprise Management Editions
Deployment Options

SAP S/4HANA Enterprise Management SAP S/4HANA Enterprise Management Cloud

Deployment On Premise HANA Enterprise Cloud Private option Public option
Scope Full ERP scope Full ERP scope Full ERP scope Essential digital business processes
Full process flexibility; Full process flexibility and
Full process flexibility;
Process complete configuration scope, configuration options Guided process flexibility;
complete configuration scope,
Flexibility extensions within standardized packages; extensions to standard code available
extensions and modifications possible
and modifications possible extensions to standard code possible
SW & DB Traditional license & maintenance Traditional license & maintenance +
Single subscription contract Single subscription contract
Licensing model subscription model
Application
Management
Available as additional, Standard AMS included in single Included in single subscription
and Customer responsibility
customer-specific options subscription contract contract
Infrastructure
Services
Support Based on support agreement Customer-specific options Cloud Enterprise Support Cloud Enterprise Support
System
Customer Customer Shared responsibility SAP
Governance
Management Customer owns all upgrades, but can Shared responsibility. Customer is
Customer owns all upgrades SAP provides upgrades
Model delegate for additional costs responsible for project and testing.
End User
Web + SAPGui Web + SAPGui Web + SAPGui Web only
Access
Innovation
Annual Annual Annual Quarterly
Cycle
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AGENDA

Evolution to S/4HANA

Why S/4HANA?

Digital Core
Roadmaps: S/4HANA and Industry

How to Convert to S/4HANA

Intelligent Enterprise Applications

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Why is the S/4HANA Platform Different?
Simplifying Business Systems

Modern Simplified Data New User

Design Smart Business
Architecture Structures

Single Landscape Simple Data Structures A ‘world of Difference’ A Smarter Business System
Single source of truth Streamlined Processes
User Interface Intuitive design
Line item Details only Cockpits with Exception Lists
Application Layer Role/Process focused
No aggregate tables
Database The ’Informed User’ Advanced Analytic Capabilities
No historical tables (Simulation, Prediction, etc)
Certified Hardware Design Any Device
No Index tables
Browser based
Leaner DBA Team Leaner IT Support Organisation More Effective Business User Informed Business User

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Why is the S/4HANA Platform Different?
A single (converged) Enterprise Platform
SRM: Ariba is the go-to solution for Strategic Sourcing including Catalog Management; while S/4HANA
supports the full purchase order management process including supplier management with tight Integration between LoB core transactions
integration into other logistics areas. With S/4HANA customers can also leverage the Ariba network for in SAP S/4HANA and new functionality
selected business processes
and innovations in SAP Cloud solutions
CRM: SAP Hybris is the go-to solution to drive customer-centric digital transformation and simplify the
front office in the cloud; while S/4HANA supports the full order execution process, post-sale services and
core transactions with a universal customer ID

HCM: SAP SuccessFactors is the go-to

SCM: SAP Integrated Business Planning is the go-to cloud solution for sales & operations, demand,
solution for human capital management;
inventory, response and supply planning, while S/4HANA supports production planning, detailed
while SAP S/4HANA continues to support
scheduling and advanced available-to-promise. For supply chain execution, SAP Transportation
payroll, benefits and core transactions with
Management and SAP Extended Warehouse Management (EWM) are the go-to solutions – stand-alone
a universal employee ID
or in late 2016, EWM native on S/4HANA

Prepare Phase Realize Phase

Supply Chain Management

Customer Engagement Management

Core ERP becomes your

Supplier Relationship Management
Digital Core with SAP S/4HANA
Enhanced core processes including procurement,
Transportation & Extended Warehouse Management manufacturing, supply chain, asset management,
sales and distribution, services, and digital boardroom

Mission Critical reporting within S/4HANA; Historical

Core ERP Reporting can continue in SAP Business Warehouse

Master Data
Master Data

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Why is the S/4HANA Platform Different?
Industry Agnostic

All 25 industries released for SAP S/4HANA with SAP S/4HANA Finance1
Industries Industries released Release of additional Release of additional
2
• Chemicals with major coverage industry scenarios industry scenarios
• High tech • Aerospace and defense Catch Weight Mgmt including media, Fashion Mgmt,
• Higher education and • Automotive simplified Public Sector Mgmt
research • Banking +
• Industrial machinery and • Consumer products First simplified industry
components • Defense and security
• Insurance
solutions
• Engineering, construction,
• Life sciences Healthcare/Patient Accounting
and operations
• Mining • Mill products
• Professional services • Public sector
• Sports and entertainment • Utilities
• Telecommunications • Oil&Gas
• Travel and transportation • Retail
• Wholesale

1 For restrictions related to SAP S/4HANA Finance, on-premise edition 1503, see SAP Note 2119188.
2 Limitations related to selected industry-specific scenarios like catch-weight management and direct-store delivery. See SAP Note 2214213 for details.

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Why is the S/4HANA Platform Different?
Platform for Innovation

advanced Availability Effective Order Entire S/4HANA Finance

to Promise (with Management & Billing scope included in the core
embedded PP/DS)

Accelerated Material Efficient Embedded Software in

Requirements Planning Procurement Product Development

Real time Inventory Management Embedded Extended Optimized Portfolio and

& Material Valuation Warehouse Management Project Management

Integrated Quality Industry to Core Consistent Fiori UX for

Management (DIMP, Oil, Retail) SAP S/4HANA

Existing & enhanced innovations

New innovations

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SAP S/4HANA embedded analytics
Solution Overview
SAP S/4HANA embedded analytics:

 Delivers contextualized analytics for SAP

S/4HANA embedded within the context of work
embedded analytics
and tailored to business needs and roles

 Consists of Virtual Data Models (based on CDS

Views) covering role based operational reports
for lines of business BUSINESS USERS DEVELOPERS
POWER USERS

 Comes with tools for Business Users, Power

Users and Developers to analyze data and
SAP
manage the lifecycle of reports and KPIs MULTI-
ANALYTICAL QUERY SAP FIORI ABAP
FRONT SMART QUERY/VIEW
DIMENSIONAL
END BUSINESS BROWSER FIORI APPS DESIGNER KPI MODELER FOR ECLIPSE
REPORTS
COCKPITS
SAP Highlights:

 Continuous extension of the Virtual Data Model

more than 6000 views and more than 120 new
Embedded Applications (KPI’s) planned BACK
END
Spend of
contract
Incoming Sales
Order
PO Avg. Delivery
Time
Non-managed
purchasing spend ….
 View Browser Fiori Application to show all SAP S/4HANA
delivered Views
Virtual Data Models
 SAP Smart Business and Analysis Path
Framework Integration
*CDS: Core Data Service
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SAP Fiori: The user experience of SAP S/4HANA

Single entry point

The SAP Fiori launchpad will be the single entry point
to access all apps

Native iOS mobile

Domain specific infos and actions experience for high-
Users will quickly get an overview of what needs their attention impact scenarios
with Overview Pages, List Reports and Work Lists,
and trigger quick actions or drill down to the next level of detail

Enter details and explore in depth

Key and differentiating use cases will be re-imagined with the
SAP Fiori user experience.
All “classic” applications will have the SAP Fiori visual theme.

This is the current state of planning and

may be changed by SAP at any time.

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User Experience for SAP S/4HANA
SAP Fiori Design Evolution
Shell header
Revised, launching notification and Notifications
Me-Area me-are viewports and Co-Pilot window. Shown in separate viewport
Anchor bar navigation that opens on clicking repective icon
Replacing former shell header menu Replacing group menu Provides navigation menu when app is
Shows recent activities now launched by clicking on title in shell header

Links
Option to show apps
as links in a tile group

Me-area Workspace Notifications

Watch Video
Some aspects shown are Future Direction This is the current state of planning and may be changed by SAP at any time.
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AGENDA

Evolution to S/4HANA

Why S/4HANA?

Digital Core
Roadmaps: S/4HANA and Industry

How to Convert to S/4HANA

Intelligent Enterprise Applications

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SAP S/4HANA, on-premise edition
Release Strategy for 2016 and definition of delivery

2015 2016

Q4 Q1 Q2 Q3 Q4

SAP S/4HANA FPS 01 FPS 02 FPS 03

on-premise edition 1511 Support Package Stack Support Package Stack Support Package Stack
SPS 00 (technically SPS 01) (technically SPS 02) (technically SPS 03)
New product

Support Package Stack for SAP S/4HANA on-premise edition 1511

Support Package Stacks are compiled periodically and made available in the SAP SAP S/4HANA
Service Marketplace. on-premise edition 1610 SPS 00
Important SAP Notes New release incl. new
SAP Netweaver Stack
2189824 - SAP S/4HANA, on-premise edition 1511: Release Information Note
2214213 - SAP S/4HANA, on-premise edition 1511: Restriction Note

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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement Public 18
What is Coming Next?
See http://www.saps4hanahub.com/i/678078-roadmap-and-future-scope

>

> …
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AGENDA

Evolution to S/4HANA

Why S/4HANA?

Digital Core
Roadmaps: S/4HANA and Industry

How to Convert to S/4HANA

Intelligent Enterprise Applications

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

SAPActivate – the innovation adoption framework for SAP S/4HANA

Business Value
New ● Faster, less service intensive initial
Implementation
implementation in the cloud or on-
premise
SAP Best Practices ● Rapid adoption of innovations
throughout the entire product
SAP S/4HANA lifecycle
Cloud
System
Conversion Guided Configuration ● Extensible framework for partners
SAP S/4HANA

Methodology
Accelerated Time-to-Value
Landscape (initial and ongoing)
Transformation
Reduced Total-Cost-of-Ownership
(over total lifecycle cloud and on-premise)

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Deploying SAP S/4HANA with SAPActivate

Discover Prepare Explore Realize Deploy Run

Technical Functional Operate,

Experience Integrate and Onboard and
SAP S/4HANA Preparation Steps Conversion and monitor,
Trial extend deploy
and Test Conversion Cut-Over support

SYSTEM CONVERSION

Continuous innovation with Content Lifecycle Management in the Cloud

Project
Lifecycle
Solution Manager Integration

SAP S/4HANA

Fit to Standard Migrate, Operate,

Experience Scope and Onboard and
Analysis with SAP integrate, monitor,
SAP S/4HANA Trial configure deploy
Cloud Best Practices extend, test support

NEW IMPLEMENTATION

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SAPActivate Building Blocks
: cloud only

SAP Best Practices Tools Methodology

for a Guided Configuration

Self-Service Configuration
SAP Best
Delivered Practices for Migration Integration
Expert Configuration One agile
with SAP Content Content
S/4HANA implementation
S/4HANA
Cloud and on-premise
Solution Builder methodology

Solution Manager

Activate Enablement and Certification Program

openSAP SAP Learning Hub Classroom

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Enablement Offerings for SAPActivate

Content Tools

Assets Getting Started

Process descriptions With SAP Best Practices
Configuration Guides With Manage your Solution
Test scripts …
…
Documentaion
Pre-Configuration
Admin Guide
SolMan Reference Guide
Implementing SAP …
S/4HANA
Feasible paths to SAP
S/4HANA
4 Weeks overview
Methodologies
29.000+ Learners Learning Maps /
Learning Rooms Classroom
eLearning Public JAM and
Roadmap Viewer
SAP Activate Learning EKT Learning Maps for Preparation to
Room for Prof. Users Tech. Consultant Certification Methodologies for OP
Methodologies for Coud
Configuration Learning Partner Edge Program Project Managers
…
Room for Key Users

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AGENDA

Evolution to S/4HANA

Why S/4HANA?

Digital Core
Roadmaps: S/4HANA and Industry

How to Convert to S/4HANA

Intelligent Enterprise Applications

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

© 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 26
 Rhod Joyce
Snr. Director, S/4HANA CoE

Calgary, Alberta

Thank you M: (403) 472 0006

Ph: (403) 298 7674
rhod.joyce@sap.com