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Webinar Series for ASUG

Introduction to SAP S/4HANA 1610


October 20th 2016
Christian Vogler, Senior Product Specialist
SAP S/4HANA Product Management, SAP SE @VoglerChrist
Disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of
SAP. Except for your obligation to protect confidential information, 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
presentation or any related document, or to develop or release any functionality mentioned therein.

This presentation, or any related document 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 presentation is not a commitment, promise, or legal obligation to deliver any material, code, or
functionality. This presentation is 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. This presentation is for
informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in
this presentation, except if such damages were caused by SAP’s intentional 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, an d they should not be relied upon in making purchasing decisions.

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1 Introduction

2 Innovations in SAP S/4HANA 1610

3 Q&A, Where to find more information


SAP S/4HANA
Next-Generation Business Suite

Feature and function parity


Enterprise Management to SAP ECC 6.0x
Included Modules * Included Industries* plus
Logistics General (LO) Product Lifecycle Management (PLM)
Core industries
• Chemicals
» major innovations in core
• Life Sciences
modules like Finance and
Sales and Distribution (SD) Materials Management (MM) • Wholesale Logistics
The Digital Core

• High Tech

Logistics Execution (LE) Quality Management (QM)


• Mining » Inclusion of additional
• Industrial Machinery & industries in the Core
Components
Plant Maintenance (PM) Customer Service (CS) » Major Simplifications
(http://help.sap.com/s4hana_op_1511)
Core Industries – adding
Production Planning & Control (PP) Project System (PS) features and processes
• Automotive
» Supporting digital Trends
Environment, Health, and Safety Others: Global Trade Management, Compensation
Management, Agency Business, …
• IM&C like Internet of Things,
• A&D Business Networks, etc
• Mill Products
Finance Human Resources
• Retails
• Oil & Gas
Note: Not all modules are
activated in the cloud edition
* does not reflect licensing

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Transition to SAP S/4HANA
Conversion Paths to move to SAP S/4HANA - Overview

Complete conversion of an existing SAP


System ERP System On-Premise Business Suite system to SAP S/4HANA
Conversion

ERP System
- Region A - On-Premise Consolidation of current regional SAP
Landscape Business Suite landscape or selective data
ERP System
Transformation - Region B - transformation into one global SAP S/4HANA
system
ERP System Cloud
- Region C -

On-Premise New or existing SAP customer implementing a


ERP System
New System new SAP S/4HANA system with initial data
Installation Non-SAP load
System Cloud

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SAP S/4HANA 1610
System Conversion – Releases, FPS, SPS
RTC Planned
Q4/2016

SAP S/4HANA, on-


Initial Feature Package Feature Package Support Package
premise edition 1511 …
Shipment Stack 01 Stack 02 Stack 03
SAP HANA

SAP ERP 6.0, EHP xx


Upgrade
AnyDB or SAP HANA
SAP S/4HANA 1610
Initial
… …
Shipment
SAP HANA

System Conversion for the transition to SAP S/4HANA


» Conversion Guide 1610 RTC Q4/2016
• Application Specific Parts moved into Simplification Items
• FIN part made more specific for SAP S/4HANA (FIN specific steps listed in SAP Note 2332030)

SAP S/4HANA Release Upgrade


» Upgrade Guide 1610
• Customer is requested to do same preparation steps (Maintenance Planner, Pre-Checks, Custom-Code)
• Simplification Items listed, relevant for Upgrade

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SAP S/4HANA
System Conversion – Transition Paths Overview (1/2)

4 SAP S/4HANA 1610


Start Release Target Release Availability Remarks
SAP HANA
Migration to SAP HANA DB
SAP Simple Finance, available since:
3 1 SAP ECC 6.0 EHP 0-7
on-premise edition 1503 Q1/2015
[if required], Installation of
Software [EHP7 + sFIN])
SAP S/4HANA, on-
premise edition 1511
Migration to SAP HANA DB
SAP S/4HANA available since :
SAP ECC 6.0 EHP 0-7 [if required], Installation of
SAP HANA 2 Finance 1605 Q2/2016 Software [EHP8 + sFIN])
2 Migration to SAP HANA DB
SAP S/4HANA, on- available since :
SAP ECC 6.0 EHP 0-7 [if required], Installation of
SAP S/4HANA premise edition 1511 Q4/2015
Finance 1605 S4CORE Software

SAP HANA
3 SAP S/4HANA, on-premise available since : Migration to SAP HANA DB
1 SAP ECC 6.0 EHP8
edition 1511 FPS02 Q2/2016 [if required], Installation of
S4CORE Software
SAP Simple Finance,
on-premise edition 1503 Migration to SAP HANA DB
SAP S/4HANA 1610 available since :
SAP HANA
4 SAP ECC 6.0 EHP 0-8
Q4/2016
[if required], Installation of
S4CORE Software

SAP ERP 6.0, EHP xx


System Conversion from SAP
AnyDB or SAP HANA Business Suite to SAP S/4HANA
System Conversion from SAP
S/4Finance to SAP S/4HANA
Upgrade within the SAP
See note 2261242 and note 2185245 with details S/4HANA product family

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SAP S/4HANA
System Conversion – Transition Paths Overview (2/2)

SAP S/4HANA 1610


Start Release Target Release Availability Remarks
SAP HANA
SAP Simple Finance SAP S/4HANA, on- available since: Installation of S4CORE
6 5 on-premise edition premise edition 1511 Q4/2015 Software
5 SAP S/4HANA, on-
9 1503
7 premise edition 1511
SAP S/4HANA SAP S/4HANA 1610 available since: Installation of S4CORE
SAP HANA 6 Finance 1605
Q4/2016 Software

SAP Simple Finance,


SAP S/4HANA 1610 available since: Installation of S4CORE
SAP S/4HANA NOT SUPPORTED 7 on-premise edition
Q4/2016 Software
Finance 1605 1503

SAP HANA SAP Simple Finance, SAP S/4HANA Installation of sFIN


available since
8 on-premise edition Finance 1605 Q2/2016 Software (Upgrade)
1503
SAP Simple Finance,
on-premise edition 1503 8 SAP S/4HANA, on- SAP S/4HANA 1610 available since Installation
SAP HANA
9 premise edition 1511 Q4/2016 Software (Upgrade)

SAP ERP 6.0, EHP xx


System Conversion from SAP
AnyDB or SAP HANA Business Suite to SAP S/4HANA
System Conversion from SAP
S/4Finance to SAP S/4HANA
Upgrade within the SAP
S/4HANA product family

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SAP S/4HANA
Delivery schedule

SAP S/4HANA SAP S/4HANA SAP S/4HANA SAP S/4HANA SAP S/4HANA …. SAP S/4HANA 1709*
Cloud 1608 1610* Cloud 1611* Cloud 1702* Cloud 1705*

Quarterly innovation cycle

Yearly innovation cycle

Available
Today Continuous innovations

*This is the current state of planning and may be changed by SAP at any time without notice.

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Current State Landscape and Evolution
What’s In, What’s Out?
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

Maintenance Planner » Pre-Checks Custom Code Migration Worklist » Application-specific Apply integration packages »

Simplification List » (SAP S/4HANA, on-premise edition)


Software Update Manager (SUM) »
Database Migration, Software Update & Data Conversion follow-on activities + Supporting end-to-end business processes
between SAP S/4HANA and SAP Cloud solutions

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SAP S/4HANA 1610
Compatibility Scope Matrix for SAP S/4HANA

Through the Compatibility Packages SAP provides customers a limited use right to run certain classic SAP
ERP solutions on SAP S/4HANA installations, provided customers have licensed the applicable solutions as
set forth in their license Agreements.
This use right expires on Dec 31, 2025, and is available to installed-base as well as net-new customers.
Technically, all Compatibility Pack solutions are part of the S/4HANA Enterprise Management shipment.
It is not necessary to install ECC to use them

SAP grants a timely restricted (1) use right for specific classic SAP solution functionality(2) to SAP S/4HANA customers, at no
extra cost (3)
(1) restricted until the end of 2025
(2) whitelist: compatibility packs as documented in note 2269324 and in the Software Use Rights (SUR)
(3) condition: customer has licensed SAP S/4HANA and the classic solution

Compatibility Packs are only required for solutions which are installed on the SAP S/4HANA instance – not for side-by-side
installations.

SAP aims to replace these classic solutions by the end of 2025 with a genuine SAP S/4HANA solution.

See: https://launchpad.support.sap.com/#/notes/2269324
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1 Introduction

2 Innovations in SAP S/4HANA 1610

3 Q&A, Where to find more information


SAP S/4HANA 1610
Overview

Mission: Establish SAP S/4HANA as the Digital Core to support the Digital Transformation of our customers

Utilize the digital data for more insight and context recognition for more effective and efficient business
processes:
» Consistent user experience: SAP Fiori 2.0 as the new User Experience for
SAP S/4HANA
» Core innovations across the product (PLM, EWM, QM,…)
» Central Finance functionality (as part of SAP S/4HANA 1610) is released together with the rest of
SAP S/4HANA 1610
» DIMP within the standard SAP S/4HANA (with restrictions)
» Long Material Number in SAP S/4HANA Core
» Embedded Analytics with Core Data Services (CDS) - Cube and dimension CDS views available
for customer usage
» Complete the Industry Roadmap with: Oil, Retail
» MDG: Embedded in SAP S/4HANA; Product as unification of Industry material and Retail Article;
Simplified Master data (Customer, Supplier, Product)
» New Best Practice Content: Belgium, China, France, Philippines, Netherlands, Hungary,
Singapore, Australia, Canada, UK + Country Fiori Apps.
» Release of add-Ons for SAP S/4HANA 1610

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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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SAP S/4HANA 1610
Key Innovations to Faster Adoption
Remark: Key Innovations does not reflect licensing

Real time Inventory Management Effective Order Entire S/4HANA Finance


& Material Valuation Management & Billing scope included

Accelerated Material Efficient Embedded Software in


Requirements Planning Procurement Product Development

advanced Availability to Embedded Extended Optimized Portfolio and


Promise Warehouse Management Project Management

Integrated Quality Plan to produce in Consistent Fiori UX for


Management ONE System (PPDS) SAP S/4HANA

Industry to Core Industry to Core Industry to Core


DIMP OIL&GAS RETAIL

Existing & enhanced innovations


New innovations

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SAP S/4HANA
Business Innovations Enabler Framework
Reimagine business models – Simplicity to connect to people, devices, and
business networks in real time to deliver new experiences and value. Internet of
Things and Big Data become accessible to any business – no more complex
» Business Process Innovations business collaboration and interactions.
» High Throughput & Performance Reimagine business decisions – Simplicity to get any insight on any data from
» System consolidation & optimization anywhere in real time with planning, execution, prediction, and simulation now all
done on the fly to drive faster business impact – no more complex data
» Reporting & Analytics
consolidation through additional sources or software.
Functional Capabilities » Minimal memory footprint
Reimagine business processes – Simplicity to focus on essential tasks in real time
» Responsive consumer grade User Interface and change business processes as needed to gain new efficiencies – no more long-
running batches, no longer confined by predefined structures.

» Role-based, new user design Reimagine user experience – Simplicity to get the job done across lines of business
with a personalized, responsive, and simple user experience available on any
» Simulation & decision support
device – no more complex and different user interfaces.
» Built-in analytics
» Save draft & smart templates
User Experiences
» One UI design for any device

Application Services Database


Reimagine IT landscape – Simplicity to reduce data footprint and work with larger
» Enterprise Search » In-memory, Columnar store Database data sets in one system to save costs (hardware and operational) and time – the
planned option to reintegrate the SAP ERP, SAP Customer Relationship
» CDS (Core Data Services) views » OLAP & OLTP together Management, SAP Supplier Relationship Management, SAP Supply Chain
» Unified reuse components & frameworks » Insert-Only, no DB locking Management, and SAP Product Lifecycle Management applications with no more
Technical Capabilities » Semantically compatible Data Model » Code pushdown discrepancies between systems.
» Seamless integration & connectivity » Remove aggregates & indices
https://support.sap.com/release-upgrade-maintenance/release-
strategy/portfolio/product-strategy/applications.html

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SAP S/4HANA 1610
Key innovations mapped to Product Map
Remark: Key Innovations does not reflect licensing
Real time
Inventory Production Accelerated Embedded Effective Order
Management& Extended planning and Material advanced Portfolio and Integrated Software in Management & Entire Finance The User
Efficient Material Warehouse detailed Requirements Available to Project Quality Product Billing Industry to Scope in Experience of
Procurement Valuation Management scheduling Planning Promise Management Management Development Core SAP S/4HANA SAP S/4HANA

Streamlined Accelerated Optimized Enhanced


HR Connectivity Core Finance
Procure to Pay Plan to Product Order to Cash Request to Service

Project Control and Order and Contract Service Master Data Time Recording Accounting and Closing
Operational Purchasing
Product Development Management Management Operations

Collaborative Sourcing and Inventory and Basic Service Management Cost Management and
Product Engineering Warehouse Management
Contract Management Profitability Analysis

Inventory and Basic Production Planning Service Parts Management


Warehouse Management Receivables Processing

Invoice and Payables Production Orchestration Service Agreement


Management and Execution Management

Supplier Management Quality Management


Business Priority

Procurement Analytics Inventory and Basic End to End solution


Warehouse Management
Follow this link to Solution Explorer
Maintenance Management

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SAP S/4HANA 1610
Capabilities Highlights for Integrated Extended Warehouse Management*
Plans to bring the full scope of the SAP Extended Warehouse Management (SAP EWM) application into SAP S/4HANA
software, which will provide customers with flexible deployment options to run all kinds of warehouses within a single SAP
solution
» Access business partner data within SAP S/4HANA instead of
replicating business partners to a decentralized EWM system
» Use material and product data within SAP S/4HANA instead of
replicating it to a decentralized EWM system
» Manage batch master data within SAP S/4HANA instead of
replicating it to a decentralized EWM system
» Directly read purchase order data, process order data, and
production order data instead of replicating those objects to a
decentralized EWM system and storing them in an expected
goods receipt (EGR) document
» Skip warehouse request objects and process only outbound
delivery orders without using outbound-delivery requests;
process only inbound deliveries without having inbound-
delivery notifications; process only posting changes
without using posting-change requests
» Maintain only one quality document instead of working with a quality inspection document and a QM inspection lot
» Eliminate the need to replicate accounting objects
» Directly read material values instead of making periodic replications for decentralized storage
* does not reflect licensing

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SAP S/4HANA 1610
Capabilities Highlights for advanced Availability to Promise*

» SAP HANA-enabled mass product availability check for sales-,


planned- and production-orders.
» Product Allocation
» Supports the business decision, if a sales order should be
confirmed and if yes to which extend.
» This decision can be based on almost every attribute of the
underlying sales order, material, plant or customer.
» Grouping- and aggregation capabilities (collective allocations) for
simplification and ease of maintenance.
» Back Order Processing
» New FIORI-UIs to set-up BOP-runs.
» New concept for requirement classification like Winner, Gainer,
Redistributor, Filler, Looser.
» New FIORI-app to display the BOP-result: The result is displayed
on different aggregation levels and allows an easy identification of
(and fast drill down to) confirmation issues.
» Release for Delivery app to enable timely actions on short term supply
and demand changes.

* does not reflect licensing

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SAP S/4HANA 1610
Capabilities Highlights for Embedded Software Management *

Innovation description
Embedded software is computer software that is embedded in one or multiple products. It provides functions together with various hardware and
systems. For example, embedded software can be used to control or optimize the functions of the mechanical part or electrical part of a product.
The embedded software typically has specific requirements on the hardware and other software that allows it to function accurately. Embedded
software management allows to define such software as component of the product structure and to ensure that the embedded software is
compatible with other components of the product as defined by relevant constraints.

Main features
» Manage embedded software versions in the SAP Product Lifecycle
Management (SAP PLM) application
» Manage embedded software in the engineering product structure
» Maintain compatibility information between software and other
components of a product
» Check product structure for compatibility of embedded software
Business value
» Support of PLM processes for cyber-physical products
» Ensure the compatibility of embedded software
* does not reflect licensing

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SAP S/4HANA 1610
Capabilities Highlights for Finance Scope in SAP S/4HANA 1610 *

Leveraging Soft Close and Prediction


» Universal journal for financial/controlling data .
» On-the-fly aggregation of transactional tables
» Central finance to consolidate many back ends

SAP Cash Management


» New cash management solution combining analytical functions and related
transactions
» SAP Fiori-embedded and KPI-based analytics available
» Includes integrated bank account management for the central administration of
bank accounts and signatories

Planning and predictive finance


» Real-time revenue and cost analysis
» • Real-time liquidity forecasts
» • Continuous planning and forecasting

Parallel Valuation: Transfer Pricing: Legal, Group and Profit-Center Valuation


Lease Accounting
IFRS changes regarding FX risk / Trade Finance
* does not reflect licensing

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SAP S/4HANA 1610
Capabilities Highlights for Integrated Quality Management *

Functional Capabilities
» Integrated search functionality in SAP Fiori with
further navigation targets
» Easy-to-use user interfaces for recording the
results of different types of inspection
characteristics
» First scope concerning the simplified inspection
process in EWM within SAP S/4HANA

User Experiences
» Support for core QM processes with new roles with
SAP Fiori user experience (UX) for:
» Quality technicians, quality engineers, quality
planners, quality managers, quality auditors,
calibration technicians

Technical Capabilities
» CDS views for quality inspections and master data

* does not reflect licensing

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SAP S/4HANA 1610
Capabilities Highlights for Sourcing and Procurement*

» A central landing page to monitor


critical business events,
purchasing spend and supplier
performance in Procurement
Overview Page

» Visualize planned spend versus


actual spend per purchasing
category
» New Fiori Apps for Sourcing and
Contract Management: Manage
Request for Quotation and
Supplier Quotation
* does not reflect licensing

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SAP S/4HANA 1610
Capabilities Highlights for Production Planning and Detailed Scheduling*

» Access production planning and detailed scheduling as part of


the manufacturing planning functionalities in SAP S/4HANA
1610
» Create procurement proposals for in-house production or
external procurement to cover product requirements
» Optimize and plan the resource schedule and the order dates
and times in detail by taking the resource and component
availability into account
» Plan critical products, such as products with long replenishment Monitor Capacity Utilization
lead times or products that are produced with bottleneck
resources
» Create executable production plans
» Use the “Create Optimal Orders for Shipment” app to order
several materials in one purchase order and optimize the order
quantities to best utilize the capacity of the means of transport

SAP Fiori App for Production Scheduling Board


* does not reflect licensing

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SAP S/4HANA 1610
Capabilities Highlights for Retail *

Marketing and Merchandising


» Harmonization of “article” and “material” combined with new user Innovations from SAP S/4HANA that will be benefit merchandise management
functionality in the upcoming release of the first version of SAP S/4HANA
experience Retail.
» Unified concept of site, customer, vendor and business partner record

Procurement and Private Label


» Increased efficiency in the procure-to-pay processes, new analytical
apps and spend key performance indicators, integration in the Ariba
Network for purchase order and invoice

Supply Chain
» Simplified data model resulting in increased through-put and flexible
analytics at the most granular level
» Elimination of locking and increased throughput for standard price
utilizing material ledger, so customers can use multiple currencies
and valuation methods for different accounting laws such as GAAP

Omni commerce Customer Experience


» Enablement of monitoring of end-to-end order-to-cash process and
taking actions for any exceptions, with information on the exceptions
to resolve the issues
* does not reflect licensing

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1 Introduction

2 Innovations in SAP S/4HANA 1610

3 Q&A, Where to find more information


Where to go for more information

Discover SAP S/4HANA Learn more: SAP Learning Hub SAP S/4HANA, cloud edition trial SAP S/4HANA, on-premise edition trial

Top Questions and How to get there … SAP S/4HANA Roadmap on the
Joint the Community
Answers S/4HANA Cookbook SAP Service Marketplace
on SCN

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Link: www.sap.com/s4-roadmaps

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Key resources for information

https://www.s4hana.com/
www.sap.com/s4-roadmaps
www.sap.com/s4-paths

http://www.sap.com/s4hana
http://www.saps4hanahub.com/h/
https://go.sap.com/cmp/oth/crm-s4hana/index.html
https://apps.support.sap.com/innovation-discovery
https://valuemanagement.sap.com/vlm/#/
https://open.sap.com/courses
http://s4hana.sapjourneymap.com
https://fioriappslibrary.hana.ondemand.com/
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.

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National product specifications may vary.

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affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and
services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as
constituting an additional warranty.

In particular, SAP SE or its affiliated companies have 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 SE’s or its affiliated companies’ strategy and possible future
developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies 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 functionality. 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.

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