Strategy Planning PDF

Business Value based on the
SAP S4/HANA Strategy
Bert Schulze, VP Co-Innovation and Strategy, SAP S/4HANA

November 2015
@BeSchulze
Legal Disclaimer
The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the
permission of SAP. This presentation is not subject to your license agreement or any other service or subscription
agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related
presentation, or to develop or release any functionality mentioned therein. This document, or any related
presentation and SAP's strategy and possible future developments, products and or platforms directions and
functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The
information in this document is not a commitment, promise or legal obligation to deliver any material, code or
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limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This
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for errors or omissions in this document, except if such damages were caused by SAPs willful misconduct or gross
negligence.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
2
2015 SAP SE or an SAP affiliate company. All rights reserved.
A Digitized Core
Quick Journey Recap
@BeSchulze
The Modern Drivers Of Change
Disruptive Discontinued
Innovation Business Models
Customer Service
Start Up Mentality Is The New Brand
Innovation Unprecedented Customer-Centric Mindset
Pace
New Expectations Customer Empowered & Informed

Customer
Collaboration
Global Social
Drivers of Change
Networks
Collective Actions
Technology
Social Mobility
Networks
Sustainability Cities 2.0 Cloud
New Middle Class
Big (Smart) Data IoT
New Workforce

SAP HANA journey
SAP Business
SAP Business
SAP Warehouse
Suite powered
HANA powered by
by SAP HANA
SAP HANA
In-memory platform Real-time analysis Real-time business

Real-time reporting OLAP and OLTP
together
SAP HANA Enterprise
Cloud for SAP Business
Suite on SAP HANA
2011 2012 2013
2015 SAP SE or an SAP affiliate company. All rights reserved. 5

SAP Business Suite, powered by SAP HANA is primetime
in 73 countries in small, medium & large companies
33% 60%
548+
7%
Live customers <100 users 100 10.000

users >10.000 users
>53% through Partners 1241+

go-live projects
in all 26 industries
170+ active Partners

115 in HANA Enterprise Cloud (HEC)
SAP HANA, the journey continues
SAP Business SAP Simple

SAP Business
SAP Warehouse Finance
Suite powered
HANA powered by powered by
by SAP HANA
SAP HANA SAP HANA
In-memory platform Real-time analysis Real-time business Instant financial

Real-time reporting OLAP and OLTP insight
together No aggregates Simplified data model
SAP HANA Enterprise Single source of truth New user experience
Cloud for SAP Business Advanced processing
Suite on SAP HANA
Choice of deployment
2015

SAP S/4HANA only 8 month after the launch
2140+
Licensed Customer Scenarios
28
395+ Live Customers
Active Customer Projects
In all 26 industries & 54 countries

21 in HANA Enterprise Cloud (HEC)
The Digital Economy Is A Reality - No Firm, No Industry Is Immune
78%
Of business leaders said that
The digital value chain
Manage materials, assets, money, and other
resources better
achieving digital transformation

Deliver exceptional experiences to
will become critical to their your customers across every channel
Enable frictionless commerce by
managing suppliers better
of interaction
organizations within the next two
years.* Resources
Business network
Omnicommerce
93%
Of employees in companies where
Customers
People
To enable the workforce of the future

employees and contingent labor
Suppliers
CEOs have shared their vision for Internet

of Social
Other
unstructured/
digital transformation feel that it is Things structured

data
the right thing for the All lines of business running in real time on a digital business platform
organization.* The digital value chain
*MIT Digital Change Survey, 2013

The Digital Storefront as typical first step
But what comes next?
New Drivers Unit of One
Digital store as typical The end to end digitized enterprise

Technology fast market entry
induced is a mandatory consequence
MVP = Minimal Viable Product
change Unit of One
Auto-replenishment/ Personalized
Subscription Coupons
In-Store [#/] # of lots

Personalized Navigation
Communication # of invoices
Easy Curated Service promise
New customer Ordering Experience
from App
Ability to deliver
expectations e2e experience
Plan Your Trip to
the Store
Value&size of lots
value&size of invoices
Digital Customer Experience Digital Economy time
Segment of ONE

SAP S/4HANA
The Digitized Core
@BeSchulze
SAP S/4HANA Suite
Introducing the next generation core and lines of business solutions for the digital economy
SAP S/4HANA
SAP S/4HANA SAP S/4HANA SAP S/4HANA SAP S/4HANA ASSET
FINANCE HUMAN RESOURCES MANUFACTURING SUPPLY CHAIN MANAGEMENT
The Digital Core

The Digital Core
Enterprise Management
SAP S/4HANA SAP S/4HANA SAP S/4HANA SAP S/4HANA SAP S/4HANA
SALES SERVICE MARKETING SOURCING & RESEARCH &
PROCUREMENT DEVELOPMENT
FORMERLY KNOWN AS SIMPLE LOGISTICS

SAP S/4HANA
Functional Scope as of Today
SAP S/4HANA Extensions
SAP S/4HANA HANA

SAP S/4HANA
On-Premise Cloud Platform
Edition Cloud Edition
Full ERP scope Key core scenarios Complementing S/4HANA in-

Full SAP S/4HANA Finance app extensibility
Embedded ERP scenarios to extend
Full SAP S/4HANA Logistics scope* Customer extensions
(Business All in One scope) Partner extensions
Integrates with SuccessFactors Employee
Central, hybris Marketing and Ariba network Integrates with SuccessFactors
Employee Central, hybris Marketing and
Industries
Ariba network
CRM, SRM, SCM co-deployed w/ ERP
Industries according roadmap
*Note: HCM default = SuccessFactors Employee Central This is the current state of planning and may be changed by SAP at any time.

SAP S/4HANA - Key Enabler To Run Digital Transformation for Enterprises
Responsive user
experience design
SAP FIORI AS THE USER EXPERIENCE
(UX) PARADIGM;
CROSS-APPLICATION USER EXPERIENCE
WEB-BASED, ALL DEVICES

Re-architecting for ROLE-BASED
in-memory platform DECISIVE, PREDICITVE, SIMULATION
SAP HANA AS THE

UNDERLYING PLATFORM
OLAP & OLTP MERGE SIMPLIFICATION OF APPLICATIONS
IN-MEMORY COMPRESSION AND UNDERLYING DATA MODEL
CODE PUSH DOWN PRINCIPLE OF ONE
INCREASE IN SPEED NO AGGREGATES & NO INDICES
HIGHER FLEXIBILITY & THROUGHPUT
DATA FOOTPRINT REDUCTION
Principle of ONE
SAP S/4HANA real-time analytics architecture
Foundation for new class of applications
Applications
(incl. insight-to-
Operational action)
SAP S/4HANA
Reporting Query
applications
Tools
Zero latency!
SAP NetWeaver PLATFORM
SAP HANA Views (Virtual Data Model)

ABAP Layer Core Data Services (CDS)
Physical Tables
SAP HANA Database Layer
Granular Instantaneous Pre-defined

The Principle of One in SAP S/4HANA
SLC
SRM Ariba
Embedded
Fiori
MM Analytics
BW
SFSF EC
HCM
Operational EWM
WM Strategic
Procurement
Apps
Procurement
HCM
HANA DB
EWM
SFSF EC
Before with SAP S/4HANA

No complete picture. Only illustrative.
Industry Value Chains are Transforming
Make Industry Leading Processes Accessible for Everybody in SAP S4/HANA (Pick from the Buffet)
You see You think You need
Engineering
plastics and
Fact: BASF runs DIMP JIT in an single instance
polyurethanes today
in the BMW i3
Today
Equipment Value Oil & Gas Service Companies are renting out
several Bill USD heavy equipment (Equipment Tools
Management) IS OIL & IS DIMP (today Side by
Side ) need to be on a single instance (future).
Concept: Meyer Werft is using Lean

Manufacturing concepts like JIS today for
Future
Shipbuilding
Transformation in full motion: Google is

developping cars

DIMP Still Provides Leading Processes for Cross Industry
Customers
IS Automotive (IS-A) IS Aerospace & Defense (IS-AD)
In total In total
Total distribution of DIMP Usage inside and outside of original
1527
Customers are using IS- A
635
Customers are using IS-
DIMP Industries (Auto, A&D, EC&O & Mill)
AD
Thereof
473
Thereof
15 from
from Automotive1 Aerospace & Defense* DIMP is the most widely used
70% are none Automotive customers Number far to small because of legal industry solution within SAP.
reasons- usage not submitted to SAP
IS Engineering, Constructions & This solution is heavily used by
Outside Lead cross industry customers.
75%
Operations (IS-EC) IS Mill Products (IS-MP)
In total In total
Industry Therefore SAPs strategy has to
customers
367
Customers are using IS-
1051
Customers are using IS- MP
support these End-to-End
Processes via S/4HANA.
25%
EC
Thereof
Lead Industry
customers
84 Thereof
from Engineering,
Constructions &
Operations1 from Mill
368
Products1
77% are none EC&O customers 65% are none Mill Products customers * Early Watch Analysis (EWA) data 2015
2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 18

Principle of One Data Model Simplifications
Sales and Distribution Inventory Mgmt. Inventory Mgmt. Material Ledger Finance *
(Quantities) (Valuation via MBEW) (multi GAAP, multi currency)
Primary Totals Totals CE4*

MARD MBEW QBEW COSP
Document tables CKMLPP CKMLCR FAGLFLEXT
VBAK LIKP VBRK Totals tables COSS
MARC OBEW OBEW GLFUNCT GLPCT
COFIT
Business Suite
MSPR
MSTQ
VBAP LIPS VBRP VBFA MSLB CKMI1
MSTE BSIS BSET BSIK BSID BSIM
MSTB Totals Index Indices
MSLBH MSKU
Export/import Index LIS MSTQH BSAS BSAD BSAK
MSSQ MSKA
tables tables Status tables MSKUH
tables MSTEH MSSA MKOL MBEWH QBEWH
EIKP VBUK S066 VAPMA MSTBH MSKAH Document
VAKPA MCHB BKPF Documents
EIPO VBUP S067 MSSQH MKOLH OBEWH OBEWH MLHD MLIT
VLPMA BSEG
VLKPA MSSAH MCHBH MKPF MLPP MLCR
Document FAGLFLEXA
VRPMA MLPPF
Rebate index Output mgmt
VRKPA
MSPRH MARDH MSEG
MLCRF COBK
ANEK GLFUNCA GLPCA
VBOX NAST MARCH COEP
ANEP COFIS
History tables
Sales and Distribution Master Data Inventory Mgmt Material Ledger Finance *
(Quantities) (multi GAAP, multi currency)
VBAK LIKB VBRK
BKPF COBK
MATDOC Material ACDOCA
VBAP LIPS VBRP VBFA Material
Prices
BSEG BSET
SIMPLE DATA MODEL PRINCIPLE OF ONE THROUGHPUT INCREASE

Only main tables remaining, no redundancies Only one valuation method (Material Ledger) INSERT only on database level (MM-IM),
instead of 2 (IM + ML) no locks for standard price valuation
Clear separation of master data from transactional data
Reduction of memory footprint Flexible rebate management instead of cumbersome * Actual Data only
Not displayed in lower part: Profit Center Accounting,
and expensive redundancies Cost based CO-PA, Reconciliation Ledger

The Road to
SAPACTIVATE
is the innovation adoption framework that
System
expedites S/4HANA implementations Conversion
throughout the customer lifecycle from the New Landscape
Implementation Transformation
discovery of ready-to-run digitized business
and integration processes, guided
configuration, and with the next-generation
methodology
supports different starting points for customers

to adopt SAP S/4HANA - new implementation,
system conversion and landscape
transformation
accelerates the initial implementation of SAP

SAP S/4HANA SAP S/4HANA
S/4HANA and is designed for continuous on-premise edition cloud edition
innovation

SAP ACTIVATE for
Guided Configuration: Simple adoption of innovation
2015 SAP SE or an SAP affiliate company. All rights reserved. Public 22

New integration domains in system landscapes
Increasing number of business scenarios with integration needs
User-Centric
Applications Cloud2Cloud
User2Cloud
Cloud
Non SAP
S/4HANA Cloud
Mobile
Application
Browser-
OnPremise2Cloud
Based
Application
OP2OP
On-Premise
Desktop SAP Business Suite On

Application e.g. CRM, SRM, APO, Premise
B2B Partner
S/4HANA
User2OP
= Integration Domain

SAP S/4HANA Extensibility
Inside-out and Outside-in Approach
In-App Extensibility Side-by-side Extensibility with SAP HCP

Key-user Extensibility

Enable a Fiori and
Custom fields Custom logic with ABAP Web Mobile user experience
and tables Editor (BAdIs) Other SAP
Integrate with other SAP Cloud Applications
Cloud Solutions
Change / add and 3rd party solutions
business logic
(rules etc.) ABAP designed for Cloud, Leverage HCP application services (Mobile
lifecycle-stable Documents, Output Management etc.)
Analytics
extensibility Full fledged development platform to build
extension applications (Java, XS)
Full access
to ABAP (e.g. SE80)
In-app extensibility Side-by-side extensibility with

Context aware extensions, SAP HANA Cloud Platform
focus on tight integration Learn from the outside, weave external
3rd party
content into your solutions

SAP S/4HANA 1511 Key Logistics Innovations
Material Inventory Material Available To Promise & Capacity

Requirements Planning Management Valuation Backorder processing Planning
Elimination of locking, increased
Fast MRP run, and new working Simplified data model resulting New ATP Algorithm based on PP/DS Side by Side with S/4
throughput for standard price
model for MRP controllers based in increased through-put, HANA embedded in mass
utilizing Material Ledger, that
on decision support. flexible analytics at the most component check in production
way customers can use multi-
granular level.
currencies, valuation methods
per different accounting laws
like GAAP.
Order Management & Billing Procurement

Enable monitoring of end-to-end order-to-cash process & take Increased efficiency in the
actions for any exceptions, information on the exceptions to Procure-to-Pay processes, new
resolve the issues, lower TCO due to data model simplification, Analytical Apps & Spend KPIs,
support for the most recent versions of business features such Ariba Network Integration for PO
as FSCM Credit Management, GTS Foreign Trade, SFIN Revenue Order and IV.
Accounting, new analytical capabilities.
2015 SAP SE or an SAP affiliate company. All rights reserved. This is the current state of planning and may be changed by SAP at any time.
SAP S/4HANA
Transition
@BeSchulze
SAP S/4HANA Transition Relevant for System Conversion only
Relevant for New Install and System Conversion
Simplified
S/4HANA Enterprise Management
Functionality Process OLAP&OLTP
CDS FIORI
Redesign
Virtual
Data
S/4HANA Finance Role based / exception Models
based user experience
Functional Changes Technical & Methodology
Changes
New Customer/Partner
Development
Framework
HANA Optimization Projects Principle of
SAP Activate
Optimizations ONE
Custom Code Refactoring
Syntax Database Migration

Modification Simplification
Corrections & Unicode
Clearing Custom Code database Transition
Optimizations
Landscape
Management System conversion
activities & SUM

Transition to SAP S/4HANA
The 3 Transitions Scenarios
New Implementation Landscape Transformation
Non
SAP
Migration of selected System Consolidation
applications
S/4HANA
FI CO SAP
FI CO
S4
System Conversion MM SD
HANA
SAP S/4
HANA
Co-deployment
HANA
of dedicated
capabilities in HANA
one central
SAP S/4HANA
S/4HANA system
Consolidation of current regional Business Suite landscape into one global
SAP S/4HANA system

SAP S/4HANA
Simplification List Application-area-wise sorting of items
Simplification List
Area
Master Data CRM Sales and Streamlined Accelerated Plan Optimized Order Enhanced
Distribution Procure to Pay to Product to Cash Request to
Simplification Item
Service
Simplification Item
Procurement MM / SRM Logistics Simplification Item
5 Solutions + 3 Solutions + 3 Solutions + 4 Solutions +
Area
Core Human Core Finance
Simplification Item Resources
Finance HCM
Simplification Item
Simplification Item
2 Solutions + 2 Solutions +
Basic Topics Cross Topics Area
Simplification Item
Basic Information Description Edition / Release Category

Impact Description Recommendation Custom Code
Related Services Customer Effort Service Offering

SAP S/4HANA
Simplification List Overview
Simplification List C1 - Change of existing functionality

Simplification Item Data model changes
Area
Removal of aggregates
Simplification Item
Basic Information Material Master field length extension
Simplification Item
Description Edition / Release Category
Simplification Item
Area Impact
Description Recommendation Custom Code
Simplification Item
Simplification Item
Related Services
Simplification Item
Customer Effort Service Offering
Area
C2 - Consolidation of existing Functionality
Simplification Item

SAP S/4HANA
Simplification Item Database Overview
Customers SAP Business Suite

On-Premise Landscape
Development
Custom Code
Extractor
Custom Code Custom Code Analysis Results

File SAP Notes
Simplification Item: < Simplification Item ID >
Simplification Item: < Simplification Item ID > SAP Note 1
Simplification Item: < Simplification Item ID >
Impact SAP Note 2
Impact
ImpactCustom Code Impact
Custom Code Impact
SAP Note 3
< Related Piece List > + related SAP Note
Custom Code Impact
< Related Piece List > + related SAP Note SAP Note x
< Related Piece List > + related SAP Note
Simpl. DB
Custom Code
Analysis Tools
Custom Code Management (SAP NW 7.50)
SAP Service
Marketplace
File

SAP S/4HANA
The Use Cases
@BeSchulze
SAP S/4HANA Enterprise Management Logistics
SAP S/4HANA Enterprise

Management Logistics
Enterprise Management comprises generally the
functionality covered by ECC
Logistics
6.0x logistics
Financials Logistics General (LO) Product Lifecycle Management (PLM)
Major Simplifications in the
Digital Core
Digital Core
Sales and Distribution (SD) Materials Management (MM) areas of:
Inventory Management
Logistics Execution (LE) Quality Management (QM)
Material Requirements Planning
Plant Maintenance (PM) Customer Service (CS)
HCM Capacity Planning
Production Planning & Control (PP) Project Management (PS) Sales and Distribution
Procurement
Others: Global Trade Management, Compensation
Environment, Health & Safety (EHS) Management, Agency Business,
Industry specific Functions:

Discrete Industries Automotive, High Tech, IM&C, A&D, Mill Products,
Chemicals

Overview SAP S/4HANA Use Cases
Market to the Segment of One Real-Time Inventory Management Accelerated Material Advanced Sales Order Fulfillment Soft Financial Close Anytime
Requirements Planning
Increase Financial Business Engage Talent Across the Platform for All Industries Detect Potential Fraud Patterns Collaborative Work Patterns
Performance Organization in Real Time
Learn about SAPs biggest innovation since R/3

Youll get an insight into the 10 Uses cases with demonstrations https://open.sap.com/courses/

Accelerated Material Requirements Planning
Innovation: Material Requirement Planning
Business Challenges Business Benefits Capabilities
Increasing customer service Clear visibility across the material flow Prioritized view on material flow issues
increases user acceptance and efficiency
Low inventory accuracy Real-time alerting based on current stock
Revenue losses due to stock-outs
Proactive decision making in response to requirements situation
changing demand
Poor on-time delivery performance
System-generated solution proposals
Flexible tailoring of available capacities
MRP can run as frequently as required (up
Missing parts in production and receipts to meet required quantities
to 10x faster)
Real time inventory monitoring and
Demand information is propagated faster
automating the creation of procurement
through the supply chain
proposals

Buffering in Manufacturing
Production line
in case the supplier is unable to
deliver the shipments on time
help to stabilize any fluctuations in production

Raw Material Supply 1 Operation 1 capacities and lead times
Coating 2 Operation 2 compensate for variations in the production

process such as machine breakdowns
Loading and Dispatch 3 Operation 3 4
Production Proposal Planning Operation

Start Date End Date impossible to confirm the
close delivery time to the
Earliest Earliest customer, as you confirm
End Date always the delivery date
Start Date
crash point based on buffer times
Lead Time
1 2 3 4 1 2 3 4 1 2 3 4
Production Order
Lead Time
Latest Latest Earliest Latest
x Buffer Time End Date End Date
Start Date End Date

Real-Time Manufacturing Planning with the MRP Run
Inventory Sales Orders Purchase Orders Work Orders
Analyze the current

situation based on real-
MRP Run MRP Run MRP Run MRP Run MRP Run
time information and
focus on single shortages
06:00 AM 08:00 AM 10:00 AM 12:00 AM 02:00 PM MRP Controller
8 Hours
Transfer Request Purchase Request Production Request

Performance improvement through code push down in MRP
Dispatcher App-Server DB-Server Dispatcher App-Server HANA
Read planning file entries
For every planning file entry

Read planned orders Read planning file entries
Plaf
Read purchase requisitions
Eban For all planning file entries with the same low-level code
Read purchase orders Read ReadEb Read
Mdbs
Plaf an Ekpo
Read production orders Afpo Vbbe Ekko
Caufv Merge + Split
Read sales orders Plan set Plan set Plan set
Vbbe
1 2 3
Read stock transfer demand Merge + Split
Mdup
Insert Insert Insert
Plaf Eban Resb
MRP planning logic
ABAP post-processing (e.g.
Update planned orders determine release strategy)
Plauf
Update purchase requisitions
Eban

MRP RUN MRP Analysis
Performance improvement with SAP S/4HANA System analyzes the material flow of all materials in real time and
identifies:
Scenario dependent up to 10 times faster
Disruptions in the material flow
Data Storage reduction by 5 times
The impact of these issues
New mode supports procurement and in-house Solution proposals for decision support
production, delivery schedules and configurable materials The remaining time-to-action
Classic mode for subcontracting, capacity planning and Role based KPI driven entry
discontinuation Running on any device
Adoptable and personalizable
Step1: Read
Step2: Algorithm (Netting, Lotsizing,..)

Step3: BOM Explosion/Configuration
In-house production, subcontracting
Step4: Write

On the fly simulation and decision support
Real time data from all areas of material management

including procurement lead times, inventory stock
availability, lot sizes, manufacturing scheduling and sales
orders across multiple sites
Suggestion of potential solutions for the shortage
through Solution Cards with all information needed to
resolve the material shortage (e.g. Reschedule Purchase
Simulation
Order, Increase Purchase Order, stock transfers).
Real Time Simulation computes the future inventory
situation in detail. The optimization algorithms make use
of the simulation to find the ideal replenishment
strategies
Daily work tasks focused on exceptions and on the most
urgent problems with the highest financial implication
Decision
Support

Value archived by SAP S/4HANA
Reduce customer service & support cost by making proactive
decisions in response to changing demand
Increase annual procurement savings by providing clear visibility
across the supply chain
Improve on-time delivery performance by tailoring available
capacities and receipts to meet required quantities
Reduce revenue loss due to stock-outs by monitoring inventory
and automating the creation of procurement proposals
Improve inventory accuracy by considering all inventory data,
lead times, and procurement timing in calculations

DEMO

Real-Time Inventory Management
Innovation: Real Time Inventory Management
Business Challenges Business Benefits Capabilities
Low throughput prevents real-time Improve on-time delivery Real-time processing of inventory postings
inventory and visibility of inventory values
Increase inventory turnover
Missing embedded and real-time analytics
Reduce cost of inventory (e.g. stock level,
Posting of finest granularity like handling
unit, lot size 1, sensor data
Missing comprehensive data model cost, place)
Process & data redundancies increase Single source of truth of inventory in one
Decreased stock levels (e.g. reduce
buffers) due to increased transparency
effort system
Attract end user by real-time accuracy
Easy to consume data model supporting
flexible analytics
Manage the changing demand for smaller
lot sizes passing through the logistic
operations

Classical Inventory tracking
Goods movements posting on predetermined times
# Stock Overview in Inventory Management Application
Calculated stock Theoretical value: e.g. based on Production

Planning via MRP Run
Production hazards: e.g. Quality issues
Physical and real stock
06:00 AM 08:00 AM 10:00 AM 12:00 AM 02:00 PM t

8 Hours

Classical Inventory tracking
Goods movements posting on predetermined times
Physical stock needed
Safety Stock
Calculated stock Theoretical value: e.g. based on Production

Security

06:00 AM 08:00 AM 10:00 AM 12:00 AM 02:00 PM t

8 Hours

Frequent real-time goods movements posting
Stock Transfer
Security
Real stock Theoretical value: e.g. based on Production


06:00 AM 08:00 AM 10:00 AM 12:00 AM 02:00 PM t

8 Hours

Innovations: Inventory Management Simplification
Aggregates eliminated
Business Suite
Aggregates History
MSTQ MSLB MSTQH MSLBH

On the fly
aggregation
MSTE MSKU MSTEH MSKUH
Document
MSTB MSKA MSTBH MSKAH

MKPF MSEG
Inventory movements
MSSQ MKOL MSSQH MKOLH MATDOC
MSSA MCHB MSSAH MCHBH Material
Document
MSPR MSPRH MARDH
MARCH
Material Master
Master data without
Master data with Stock aggregates Stock aggregates
Master data MARC MARD MARC MARD
Transactional Data
MARCH MARDH
26 aggregate tables

The Need for a new Inventory Data Model
ECC6 SAP S/4HANA
Content of the aggregate tables calculated from Build in SAP HANA Database and the new data model uses the
the inventory data in MKPF and MSEG advantage of in-memory columnar storage
the IMG tables e.g. Stock type Separation of the MKPF information and MSEG information in
different tables becomes obsolete.
Two aggregate tables are used as logical locking arguments to block Single table (MATDOC) with almost all required attributes and
a parallel creation of material document creation views represents the data for all business perspective
One lock for quantity posting (for goods issue) Elimination and reorganization of the IMG table structure
Second lock for value posting (materials with moving Existing fields MBLNR and MJAHR of the table MKPF are not
average price) key fields any more

Material Document: Data Model / Columns
MATDOC comprises 289 columns
32 columns from MKPF (Material Document header table)
204 columns from MSEG (Material Document item table)
53 additional columns for fast Calculations / Analytics
Warehouse stock grouping fields
e.g. stock categories (special stock, unrestricted, )
Additional units and key figures
e.g. stock quantities stored with sign for fast on-the-fly aggregation
Two sets of stock identifying fields (source and target)
Transfer postings
Periods and time information
e.g. year-month combination for comparison of stock time series
Data footprint: 25% .. 38% of total table size

Value archived by SAP S/4HANA
Improve on-time delivery performance by enhancing
shipping performance
Improve sales productivity by providing a streamlined and

predefined process for order management
Reduce revenue loss due to stock-outs by preventing them in

the first place with greater visibility

DEMO

Summary The Value Levers Are Huge
Master The Digital Economy At The Pace You Choose
S/4HANA Enablement Business Outcome
Reduced footprint x10
Complexity reduction
Increased throughput x 7
HANA TCO reduction
Analytics speed > x1000
Data Models Service quality increase
Efficient access to information Margin protection

Proactive issue notification Service quality increase
Productivity
Pre-evaluation of solution alternatives User productivity
Predictability Simulation before application of solution
Exception driven Higher asset utilization
Signal to action
User Experience and Decisions
Frequency Significantly higher process frequency Inventory cost reduction

Granularity Real-time inventory updates Service quality increase
De-layer processes Lot size 1 handling capability Revenue growth
Raise process intelligence Participate in Industry 4.0 Business Agility
Business Processes Effectiveness
Connectivity
Leverage Internet of Things Stock price appreciation
S/4 Organizational agility
HANA Products become services Market share growth
Granular data processing capability No ownership of things Customer success/loyalty
Subscription economy
Business Models
Organizational Agility
Business Value
Where to go for more information
Discover SAP S/4HANA SAP S/4HANA, cloud edition trial SAP S/4HANA, on-premise edition trial Co-Innovation @ SAP S/4HANA
Joint the Community Top Questions and Answers How to get there Detailed SAP S/4HANA road map:
S/4HANA Cookbook SAP Service Marketplace

Further deep dive information
2189824 - SAP S/4HANA, on-premise edition 1511: Release Information Note
2214213 - SAP S/4HANA, on-premise edition 1511: Restriction Note
2228890 - SAP S/4HANA, on-premise edition 1511, Country Versions: Release Information & Restriction Note
2214245 - SAP S/4HANA "SAP FIORI FOR SAP S/4HANA 1511": Release information
S4 Help Portal: http://help-preview.mo.sap.corp:1080/s4hana_op_1511
Feature Scope: http://help-preview.mo.sap.corp:1080/s4hana_op_1511

Installation Guide:
https://uacp.hana.ondemand.com/http.svc/rc/PRODUCTION/pdf3be8f85500f17b43e10000000a4450e5/1511%20000/en-
US/INST_OP1511.pdf
Operation Guide:
https://uacp.hana.ondemand.com/http.svc/rc/PRODUCTION/pdfc2e8dd55f19f612de10000000a441470/1511%20000/en-
US/OPS_OP1511.pdf
Getting Started: https://uacp.hana.ondemand.com/http.svc/rc/PRODUCTION/pdfaabf2756696fc44ee10000000a44147b/1511%20000/en-

US/START_OP1511.pdf

Run Digitized.
Thank you
Bert Schulze, SAP S/4HANA Co-Innovation & RIG

bert.Schulze@sap.com
@BeSchulze
@BeSchulze
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an
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SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate
company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.
National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its
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Business Value based on the

SAP S4/HANA Strategy

Bert Schulze, VP Co-Innovation and Strategy, SAP S/4HANA

New Expectations Customer Empowered & Informed

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

In-memory platform Real-time analysis Real-time business

2011 2012 2013

2015 SAP SE or an SAP affiliate company. All rights reserved. 5

in 73 countries in small, medium & large companies

Live customers <100 users 100 10.000

>53% through Partners 1241+

SAP Business SAP Simple

In-memory platform Real-time analysis Real-time business Instant financial

2015 SAP SE or an SAP affiliate company. All rights reserved. 7

Active Customer Projects

In all 26 industries & 54 countries

achieving digital transformation

To enable the workforce of the future

CEOs have shared their vision for Internet

digital transformation feel that it is Things structured

*MIT Digital Change Survey, 2013

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

Digital store as typical The end to end digitized enterprise

In-Store [#/] # of lots

2015 SAP SE or an SAP affiliate company. All rights reserved. 10

The Digital Core

FORMERLY KNOWN AS SIMPLE LOGISTICS

2015 SAP SE or an SAP affiliate company. All rights reserved. 12

SAP S/4HANA HANA

Full ERP scope Key core scenarios Complementing S/4HANA in-

2015 SAP SE or an SAP affiliate company. All rights reserved. 13

WEB-BASED, ALL DEVICES

SAP HANA AS THE

SAP NetWeaver PLATFORM

SAP HANA Views (Virtual Data Model)

Granular Instantaneous Pre-defined

Before with SAP S/4HANA

You see You think You need

Concept: Meyer Werft is using Lean

Transformation in full motion: Google is

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

2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 18

Primary Totals Totals CE4*

SIMPLE DATA MODEL PRINCIPLE OF ONE THROUGHPUT INCREASE

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

supports different starting points for customers

accelerates the initial implementation of SAP

2015 SAP SE or an SAP affiliate company. All rights reserved. 21

2015 SAP SE or an SAP affiliate company. All rights reserved. Public 22

Desktop SAP Business Suite On

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

In-App Extensibility Side-by-side Extensibility with SAP HCP

In-app extensibility Side-by-side extensibility with

2015 SAP SE or an SAP affiliate company. All rights reserved. 24

Material Inventory Material Available To Promise & Capacity

Order Management & Billing Procurement

Syntax Database Migration

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

New Implementation Landscape Transformation

2015 SAP SE or an SAP affiliate company. All rights reserved. 33

Basic Information Description Edition / Release Category

2015 SAP SE or an SAP affiliate company. All rights reserved. 34

Simplification List C1 - Change of existing functionality