Innovation Highlights & Benefits

S/4HANA Enterprise Management 1610 & 1709

STEFAN BATZDORF, S/4HANA Pre-Sales Expert, SAP
September 14th, 2017

Public
Agenda

S/4HANA Introduction & Innovation Highlights

▪ New Data Modell and New User Experience are key pillars for Innovations and faster processes

Efficient Sales & Order Management

▪ Sales Order Processing, Fiori Sales Overview Page, Sales Analytics
▪ Embedded CRM in S/4HANA

Real-time Material Management & Inventory Handling

▪ Inventory Management and integrated Extended Warehouse Management

Efficient Procurement & Analytics

▪ Procurement Analytics, Enhanced Purchase Requisition, Integration with Ariba

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 2

S/4HANA INTRODUCTION
 Where does complexity hide in enterprises?

Scattered information Batch orientation Technology limitation

Complex decision making Complex business processes Complex technology

“Large global organizations have Large organizations can spend between 73% percent of executives said the
created so much complexity that 40% and 80% of their time on non-value- complexity of data is the largest IT
businesses often struggle to bring good added activities challenge
ideas to the marketplace profitably.”
(McKinsey, 2014) (BCG, Complexity Report) (Forrester, 2013 report)

10.2% or $237B*
of profits lost by top 200 global companies due to hidden costs of complexity
*Global Simplicity Index, 2013

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 4

SAP S/4HANA: The Guiding Principles

Modern Architecture Role-based Design Smart Business

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SAP S/4HANA: The Guiding Principles

People Centric
Any Device
Browser based
Role-based Design
Embedding Workflows
Decision Support

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 6

SAP S/4HANA: The Guiding Principles

Robust and Scalable

Simple Data Structures
Speed on Primary Data
Modern Architecture
Single source of truth
Flexible consumption
Non Disruptive Journey

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 7

SAP ECC vs. S/4HANA Database & Table Structures
Prepares Your Data Structures for New Real-time Requirements, Big Data and High Throughput
SALES FINANCE
Document indices Document Totals indices
Header Item Header Item

Sales Order VBAK VBAP VAKPA VAPMA GL, AR, AP BKPF BSEG GLT0 KNC1 KNC3 BSIS BSAS BSIK

Delivery LIKP LIPS VLKPA LKPMA LFC1 LFC3 BSID BSAD BSAK

FAGLF FAGLF FAGL FAGL

Billing Document VBRK VBRP VRKPA VRPMA New GL LEXA* LEXT* BSIS BSAS

Status Info VBUK VBUP Index for Rebates CO COBK COEP COSS COSP

Conditions KONV VBOX AA ANEK ANEP ANEA ANLC ANLP

Document Flow VBFA ML MLHD* MLIT* MLCD* MCLR* BSIM* CKMI1*

SAP Business Suite

MATERIAL VALUES MATERIAL QUANTITIES
Valuation in MM or Valuation ML Aggregates
Aggregates Stock Aggregates History
Hybrid: Master Data
with Valuated Stock History Material Document MSSA MSSL MSSQ MSSAH MSTBH MSSQH

CKMLC
MBEW MBEWH MKPF MSEG MSTE MSTQ MSTB MSTEH MSTQH
R

EBEW EBEWH CKMLPP Inventory Movements Hybrid: Master Data with Stock Aggregates MARCH MARDH MKOLH

QBEW QBEWH MCHB MARC MARD MSKU MSLBH MCHBH MSKUH

OBEW OBEWH MSKA MKOL MSPR MSLB MSKAH MSKAH

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 8

SAP ECC vs. S/4HANA Database & Table Structures
Prepares Your Data Structures for New Real-time Requirements, Big Data and High Throughput
SALES FINANCE
Document Document
Header incl. Status Item incl. Status Header Item

VBAK VBAP BKPF BSEG

LIKP KIPS

VBRK VBRP ACDOCA

FAAT
DOC IT
PRCD FAAT
ELEMENTS YODA
FAAT
VBFA PLAN
VALUES

MATERIAL VALUES On the fly aggregation and compatibility MATERIAL QUANTITIES

views for indices and obsolete tables

Used for Master Data Only ML Valuation Material Document

CKMLC MATDOC
MBEW MATDOC
EXTRACT
R

EBEW CKMLPP Used for Master Data Only

QBEW MCHB MARC MARD MSKU

OBEW MSKA MKOL MSPR MSLB

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 9

How to deal with Z-code – Compatibility Views

Program Reading Program Reading

Aggregate Aggregate

Compatibility
views calculate on
the fly

Aggregate / Index Header Item

Aggregate
Aggregate

DB Tables

Suite on HANA SAP S/4HANA

▪ How we ensure best possible downwards compatibility:

– Index and totals tables have been replaced with compatibility views (aka equally named views). These views have the
same name as the original tables, contain the same fields and shall allow for a smooth transition to the new data model in
the standard as well as in the partner and customer coding.
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 10
SAP S/4HANA: The Guiding Principles

Built for Scalability, Automation & IoT

Cockpits with Exception based Worklists Smart Business
Embedded Analytics, Simulation,
Prediction

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 11

 SAP S/4HANA Embedded Analytics

Embedded Analytics
▪ Deliver contextualized analytics for SAP
S/4HANA embedded within the context of embedded analytics
work and tailored to business needs and
roles
▪ Consist of Virtual Data Models based on
Core Data Service (CDS) views covering
role based operational reports for lines of BUSINESS USERS POWER USERS DEVELOPERS
business
▪ Come with tools for Business Users,
Power Users and Developers to analyze
SAP
data and manage the lifecycle of reports and FRONT SMART
MULTI-
QUERY/VIEW ANALYTICAL QUERY SAP FIORI ABAP
KPIs DIMENSIONAL
END BUSINESS BROWSER FIORI APPS DESIGNER KPI MODELER FOR ECLIPSE
REPORTS
COCKPITS
Highlights 1610 On-Premise
▪ 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
▪ SAP Smart Business and Analysis Path
Virtual Data Models
Framework Integration

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 Steer with S/4HANA via Embedded Analytics

Event Based Revenue Recognition

Supervise Collections Worklist
Monitor Contract Items
Inventory Turnover Analysis

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 13

SAP S/4HANA 1610 – S/4HANA Suite

SAP S/4HANA FINANCE SAP S/4HANA HUMAN RESOURCES SAP S/4HANA SOURCING & SAP S/4HANA MANUFACTURING SAP S/4HANA SUPPLY CHAIN
PROCUREMENT

• Responsive Manufacturing (ME, MII, • Integrated Business Planning

• Governance, Risk, and Compliance
for Finance
Suite
• Financial Services Network
• Financial Planning and Analysis
• Accounting and Financial Close
• Treasury Mgmt.
Products • Receivables Mgmt.
• Invoice Mgmt. and Accounts Payable
• Real Estate Management
• Accounting and Closing Operations
• Accounting
• Cost Mgmt. and Profitability
Analysis
• Core Human Resources And Payroll
• Talent Mgmt.
• Time and Attendance Mgmt.
• Human Capital Analytics
• Time Recording
• Supplier Collaboration
• Business Network
•
Guided End-User Buying
• External Workforce Management
• Operational Purchasing
• Collaborative Sourcing and Contract Mgmt.
• Invoice and Payables Mgmt.
• Supplier Management
• Procurement Analytics
QIM, VE)
• Production Operations (MII, QIM)
• Digital Operations for Manufacturing
(MII)
• Constrained production planning
• Planning and Scheduling
• Production Operations
• Quality Mgmt.
• Global Batch Traceability
• Extended Warehouse Mgmt.
• Transportation Management
• Extended Warehouse Mgmt.
• Advanced ATP
• Inventory and Basic Warehouse
Mgmt. *
• Production Planning

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.* • Product 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 Marketing • Digital Asset Network • Digital Operations for R&D
Service Engagement Center Commerce
Cloud for Customer
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
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 14
 • Major Delta in E2E Process

SAP S/4HANA 1709 – Preliminary Delta Business Scope Highlights • NEW E2E Process

• “Readiness Check” • EPM: Legal Content Management TECHNOLOGY • API: IoT Application Development Services • API: CoPilot • “Migration Cockpit”

FINANCE HUMAN RESOURCES SOURCING & PROCUREMENT MANUFACTURING SUPPLY CHAIN

• SAP Cash Application • Integration to IBP

Suite**

• Accounting & Financial Close: • Centralized Requisitioning • “Complex Manufacturing” • Transportation Management
“Closing Cockpit”
Products* • MRP: “Demand Driven MRP”

• Accounting & Closing Operations: • Basic Shipping “TM replaces LE

“Document Splitting, Fiori” TRA”

Digital Core Enterprise Management

• Order & Contract Mgmt.:

• “CRM Service Add-On (1709FPS01,
“Sales Overview Page, Returns,
/Q1 2018)”
Billing & Analytics”

• “CRM Sales Add-On (1809)” • Maintenance Execution • Advanced Variant Configuration

Products*

Suite**
MARKETING & COMMERCE ASSET MANAGEMENT RESEARCH & DEVELOPMENT
SALES SERVICE

• Catch Weight Mgmt. • Commodity Management Sales & Procurement • Wholesale Fashion Mgmt. INDUSTRIES • Oil & Gas: “Upstream Ops Mgmt.” • Direct Store Delivery C

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 15

S/4HANA SALES
Business Challenge: Sales Order Management
High volume Order-2-Cash needs too much manual attention and effort

OLTP based systems

Issues & exceptions are typically identified by working down lists A people centric collection of issues & exceptions via embedded analytics
of multiple table & aggregate structures – a time consuming and worklists in real-time on primary data to solve issues in seconds
and error-prone process

OLAP + OLTP ✓ Resolved

in SAP HANA
✓ Delivered
✓ Billed
✓ Paid
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 17
 SAP S/4HANA Sales
SAP S/4HANA Enterprise Management Scope for 1610 Shipment
E2E Business Process: ORDER AND CONTRACT
MANAGEMENT

Solution Capabilities:
SALES ORDER
SALES MASTER SALES CONTRACT CLAIMS, RETURNS & SALES MONITORING
MGMT. & BILLING & INVOICING
DATA MGMT. MANAGEMENT REFUND MGMT. & ANALYTICS
PROCESSING

Leverage simplified data Take immediate action Identify bottlenecks & Settle rebate flexibly using Reduce customer service & Monitor Order-to-Cash
model and central using real-time analytical issues with resolution Condition Contract support cost by Process Performance and
Business Partner results to effectively proposals in the Sales Settlement without any automating and execute Sales Analysis on
approach. manage Sales Contracts Order Fulfillment Cockpit index table. streamlining return the fly and display
Create, modify, or display and Sales Quotations for maximizing “no-touch” Manage Billing Document processes contextual information, or
sales documents with work order rate. Leverage efficiently with seamless analyze your sales
lists, manage sales worklists with smart links integration to related quotation conversion
quotations, orders, credit to related documents and operational transactions rate, or open sales orders
and debit memo requests. transactions to streamline and use Intrastat and deliveries and track
Access documents quickly the flow Processing for Foreign overall O2C performance
Trade activities in your company

Innovation & Highlights:

Manage Sales contracts in just Analyze your Sales Order Use new Condition Contract Use new Sales Overview Page
seconds Conversion Rate Settlement

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 18

Sales Order Management with SAP S/4HANA: What You Get…

Use real-time alerts Ensure resolution of Check impacts and

instead of checking the biggest issues act on any issue
yesterdays’ reports first within seconds

Experience Transformation: Sales Order Fulfillment: DEMO / VIDEO

Measure SAP ERP with SAP GUI with SAP Fiori Improvement
Sales Order Fulfillment Sales Order Fulfillment Factor

Duration 4.15 min 2.20 min 1.9 x

Clicks 70 42 1.7 x

Number of Apps 8 2 4x

Fields filled 14 3 4.6 x

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 19


S/4HANA Sales
Scope highlights for 1709 Shipment
Sales order management and processing
• “My sales overview” overview page provides
internal sales representative with a central entry
point to all his important daily working tasks.
• Get insight to all sales orders’ status and take
immediate action along with the whole O2C
lifecycle with “Track Sales Order”.
• Enhanced Sales Order Fulfillment cockpit with
SOFM – Analyze and Resolve Issues
• Schedule the output of sales documents with the
new output management
SOFM – Analyze and Resolve Issues
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL
Billing and invoicing
• Converge external billing data, sales orders, sales
contracts, debit memo request, and outbound
deliveries into one invoice.
• Reduce the number of invoices needed when
processing billing due list items of different
categories and support Innovative omnichannel
approach.
• Enable electronic and digital payments with
payment hub integration in SAP S/4HANA
Claims, returns and refund management
• Simplify return processes with “Accelerated
Returns”
Order and Contract
Management
Sales Monitoring and Analytics
• Sales order delivery performance to monitor his
current situation, and instantly recognizes the effect
of delivered as requested ratio of sales orders,
because a critical delay of delivered goods endangers
customer satisfaction and retention in the future.
Insight to action - navigation via smart links.
• Analyze Backorders: Monitor sales confirmation
situation, and instantly recognizes the risk of
unconfirmed sales orders, because these endanger
future sales volume.
• New key performance indicators for sales contracts,
customer returns, outbound deliveries, and credit and
debit memo requests.
20
 Unified Functionality in the Core
Advanced Available to Promise

EXISTING ERP FUNCTIONAL MODEL 1610 RELEASE

SAP ERP SAP APO

Basic ATP Advanced Available to Promise
Global ATP

✓ Simple to Use &

Core Interface Implement
CIF

✓ Advanced
Functionality
✓ Simple to Use & ✓ Advanced
Implement Functionality ✓ New Innovations

 Lack of Advanced  Simple to Use &

Functionality Implement
Enhanced Enhanced Release for
Backorder Processing Product Allocation Delivery App
New concept for Synchronous, Enable timely action on
requirement consistent data short term supply and
classification Immediate error handling demand changes

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 21

SAP S/4HANA Advanced ATP ADVANCED ATP*
Back-Order Processing (BOP): Confirmation Strategy

Online order entry – Order creation Reinvented confirmation strategy with SAP S/4HANA

All Standard Sales

Orders of this Week

All Sales orders from “A”

Sales Orders Sales Orders Rush Order Sales Orders Customers Orders on
which are due today and Credit Block

Estimated Time
Delivery Date
tomorrow

Requested
Inward movement

of Arrival
“Customer X” Orders
of Today
Rush Order Stock Transfer
Requisitions
Rush
Orders List of Material / Plants
Time

Reservation Reservation
WIN GAIN REDISTRIBUTE FILL LOSE
Delivery Delay Requested
Outward movement Delivery Date Confirmed

First come – First served process: New business prioritization strategy:

 No prioritization of requirements during sales document  Simple classification of concurrent sales orders according their
creation: Traditional New business impact
First come – First serve Strategy Strategy  High-volume back order processing
 High priority orders might not get confirmed due to reservations  ATP confirmation based on business priority instead of order
for less important sales order requirements creation time
 Backorder Processing necessary to adjust the confirmations
 Reduction of the number of missed business opportunities and
according to the priority of the sales orders Planning performance the enhancement of revenue and profitability
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 22
SAP S/4HANA Advanced ATP ADVANCED ATP*
Back-Order Processing (BOP): Confirmation Strategy

Five confirmation strategies with the new advanced available-to-promise in SAP S/4HANA 1610.
aATP confirmation based on business priority instead of order creation time.

Win Gain Redistribute Fill Lose

Confirm as Improve if Redistribute Delete Delete

requested possible confirmation if confirmation
required

Shall be fully confirmed Shall at least keep Should gain, but Shall not gain Shall lose
in time (MBDAT of the confirmation may also lose. anything, should everything.
requirement in past and should gain. keep confirmation,
shall be today). but may also lose.
quantity from
Can gain

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 23

SAP S/4HANA Advanced ATP ADVANCED ATP*
Extended LoB scope for 1610 Shipment

SAP S/4HANA 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 extent
» 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 SAP Fiori UIs to set up back-order processing (BOP) runs
» New concept for requirement classification, like winner, gainer,
redistributor, filler, loser
» New SAP Fiori app to display the BOP result – 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
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 24
 SAP S/4HANA CRM – Optimize Your Back Office, Simplify Your Front Office
UNIFIED FRONT OFFICE

UNIFIED FRONT OFFICE

UNIFIED FRONT OFFICE

UNIFIED FRONT OFFICE

Front Office Suite Front Office Suite SIMPLIFY YOUR FRONT OFFICE
Marketing Cloud Commerce Cloud Marketing Cloud Commerce Cloud
DELIVER GREAT CUSTOMER EXPERIENCES
Sales Cloud Service Cloud Sales Cloud Service Cloud
Revenue Cloud Revenue Cloud TRANSFORM AND BE AGILE
option

SAP S/4HANA CRM

FOCUSES ON THE HEAVY LIFTING
SAP CRM CUSTOMER PROCESSES
UNIFIED BACK OFFICE

SUPPORTING COMPREHENSIVE
BACK OFFICE

Digital Core
Digital Core CORE PROCESSES

Any DB HANA CENTRAL CUSTOMER DATABASE

HANA

Today Future

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL * final name tbc 26
SAP S/4HANA CRM – a simplified SAP CRM Stack in S/4HANA on-premise

Goal: Provide rich CRM functionality in S/4HANA with superior integration and low TCO
1. Simplified on premise landscape & operations compared to side-by-side operation
2. HANA and UI innovations
3. Allow migration and on premise landscape consolidation for existing SAP CRM installations

CRM Simplification roadmap for the SAP CRM stack in S/4HANA:

S/4HANA
1. Eliminate middleware for simplified scenarios
NW System
Harmonize data models between CRM and S/4HANA and eliminate redundancies
2. Eliminate Java stack and TREX

S/4HANA CRM 3. Optimize CRM OneOrder data base model for HANA DB
DB Schema tables
4. Fiori 2.0 visual harmonization with S/4HANA
SAP HANA Database
HANA
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 27
 S/4HANA CRM Simplification Roadmap Overview
Data Harmonization and Elimination of Functional Redundancies

1. “Best of both worlds”: identify functional redundancies and select most suitable entity / process / engine
2. Harmonize object models between CRM and S/4HANA  objects share a common database representation, and thus
require no middleware

S/4HANA CRM S/4HANA CRM S/4HANA CRM S/4HANA CRM

Business Partner Service & Solution Quote Org Model Lead

Material Service Contract Sales Quote Opportunity

Equipment Service Order Sales Contract Activity

Functional Location Service Request Sales Order Sales Performance

Material BOM Service Confirmation Configuration Territory

Maintenance Plan Interaction Center Pricing Call List

Warranty Dispatching (MRS) Billing Loyalty

Service Management Sales & Order Management

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 28
UI Harmonization
Belize Theme for CRM WebUI - Design Direction

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S/4HANA MATERIAL MANAGEMENT
SAP S/4HANA 1610
Capabilities highlights for real-time inventory management and material valuation*
Use Cases Enabled Technical Innovation
High-volume backflush – Simplified data model – MATDOC
parallel production combined (material document) = MKPF
postings (material document header table) +
MSEG (material document segment
Internet of Things scenarios – table) + add; columns for fast
real-time goods movements calculations
posting
No aggregates – on-the-fly
Segment of one – smaller lot aggregation of inventories
sizes passing through logistic
operations Insert only on database level – no
database locks anymore
Combined postings from
offline devices – fast parallel Insert only on application level –
postings elimination of standard price
(SPREIS) locking (taking rounding
differences into account)
One valuation method (material
ledger) instead of two (material
management–inventory
management and material ledger)
Parallel processing of
inventory postings
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL
Improved Business
Processes
More effective inventory
management like inventory
turnover and inventory costs
More accurate material
requirement planning
More efficient procurement
processes
More accurate sales order
fulfillment and delivery
More efficient production
execution
Easier implementation of new
processes (like just-in-time,
kanban)
Accurate
inventory * Does not reflect licensing
31
Inventory Management in SAP S/4HANA: What You Get…
Built to scale

SAP ERP
Traditional Inventory Management Inventory Management based on Material Ledger

Data Throughput 1 1…30 x*

# of Currencies/ Valuations 1 1 to 3
Parallel Postings No YES (insert only principle)
Valuation methods 2 + YE 3 + YE
Aggregate Tables 26 On the Fly
Transfer Prices & Actual Costing No YES (optional)
Transparency of movements No YES
Reporting Batch on Multiple aggregates Real-time on primary data
SIMPL
Predict & Simulate
E stock No YES
Analytics Performance 1 up to 800 x

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 32

* depending on scenario: esp. materials with known locking problems in ECC can achieve higher
throughputs regarding large number of document positions and many identical parts, see note 2319579
Inventory Management with SAP S/4HANA: What You See…

Analyze Track the material Transfer stock

inventory flow in real-time, cross plants in 3
turnover with insight-2-action clicks

Experience Transformation in Inventory Management: DEMO / VIDEO

Measure SAP ERP with SAP GUI with SAP Fiori Improvement Factor

Duration 8.10 min 3.58 min 2.1 x

Clicks 135 64 2.1 x
Number of Apps 10 7 1.4 x
Fields Filled 18 8 2.3 x

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 33

 EXTENDED
SAP S/4HANA Extended Warehouse Management WAREHOUSE MGMT.*

Unified functionality in the Core

EXISTING ERP FUNCTIONAL MODEL CURRENT RELEASE

Extended Warehouse Management

SAP ERP ▪ Inventory Management Optimization
LE-WM SAP EWM SAP S/4HANA SUPPLY CHAIN (e.g. Slotting)
WITH EMBEDDED EWM ▪ Inbound Process Optimization
(e.g. Deconsolidation)
Core Interface ▪ Outbound Process Optimization (e.g.
CIF Waves)
▪ Material Flow Control
SUITE
▪ Yard Management (e.g. TU handling, DAS)
▪ Labor Management
Extended Warehouse
Management ▪ Value Added Services
PRODUCTS ▪ Kitting
▪ Cross Docking
Integration steps required between EWM and ERP ▪ Warehouse Billing
1. Configuration of communication between ERP and EWM using qRFC
2. Definition of a warehouse in ERP and EWM Basic Warehouse Basic Warehouse Management
Management
3. Integration of the warehouse with the organizational structure of ERP
▪ Inventory Management
4. Initial master data transfer from ERP to EWM
▪ Inbound Process
5. Creation and activation of a Core Interface (CIF) integration model
▪ Outbound Process
for the master data transfer from ERP to EWM
▪ Internal Warehouse Movements
▪ Physical Inventory
One System for all warehousing
▪ Reporting

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 34

SAP S/4HANA Extended Warehouse Management EXTENDED Simpler
Data Model
WAREHOUSE MGMT.*
Direct Read of SAP S/4HANA Master Data

ERP EWM ERP EWM

Purchase Order Sales Order Outbound Delivery Sales Order

Purchase
Expected Goods Order Request
Outbound Delivery
Replicate Orders Receipts
EWM Outbound
Create EWM Delivery Order EWM Outbound
Inbound Delivery Outbound Delivery Delivery Order
Create EWM Pick
Inbound Delivery Pick
Pack Pack
Inbound Inbound
Delivery Delivery …

ERP EWM ERP EWM

Purchase Order Inbound Delivery Purchase Order Material Posting Material

Production Order Production Order Posting Change Posting
Notification
Request
Inbound Delivery Outbound Delivery
EWM Inbound Delivery
Outbound
Order
EWM Inbound Delivery
Unload Delivery Order Posting
Inbound Delivery Change
Put away Unload
Put away
Posting Change
…

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 35

S/4HANA Sourcing & Procurement
Procurement: Business Challenges

High Volume of Purchasing Items Poor Self Services

Not enough automation & integration, too many manual, Poor usability & UI with missing search causes, many requests
time-consuming processes, too many places to search to purchasing, maverick spending and low acceptance

Lack of Procurement Insights Lack of Purchasing Productivity

Difficulty in gaining transparency and keeping track of Lengthy, manual, paper-based and error-prone processes
supply information such as time, cost & quality prevent the execution of real strategic procurement solutions

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 37

 SAP S/4HANA Procurement
SAP S/4HANA Enterprise Management Scope for 1610 Shipment
E2E Business Process:
Solution Capabilities:
SELF SERVICE
REQUISITIONING
Allows employees to
search and request
goods / services in a
cross-catalog
search with a
consumer-grade
user experience.
Highly integrated
requesting process
into core S/4HANA
processes and
existing master data
Innovation & Highlights:
Next level of Procurement via
Procurement Overview Page
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL
OPERATIONAL
COLLABORATIVE
INVOICE &
SUPPLIER MGMT. &
SOURCING & PROCUREMENT
PURCHASING PAYABLES MGMT.
CONTRACT MGMT. ANALYTICS
CLASSIFICATION, SPEND VISIBILITY,
PURCHASE ORDER OPERATIONAL INVOICE
INVOICEPROCESSING
PROCESSING INVOICE PROCESSING INVOICE PROCESSING
REQUIREMENTS SERVICES SEGMENTATION &
PROCESSING & SOURCE ASSIGNMENT CONTRACT & COLLABORATION
& ACCOUNTS & REALTIME REPORTING
PURCHASING & ENTRY &SUPPLIER
ACCOUNTS & ACCOUNTS
PROCESSING MANAGEMENT ACCOUNTS PAYABLES & MONITORING
COLLABORATION PAYABLES PAYABLES
EVALUATION PAYABLES
Supports Indirect & High percentage of Give buyers access With Supplier
With S/4HANA, Monitor contracts in Classification and Purchasers gain role
Direct Procurement automation tasks, to one, integrated Invoice List and
automated and contract work list Segmentation offers based and quick
with high automation, and additional system for service Create Supplier
manual processes for and get instant logical grouping of access to the
high system support, supporting functions purchasing to Invoice apps,
source assignment information. Dynamic similar expenditure procurement
and harmonized UI. for manual create, display, S/4HANA offers the
to operational search helps propose items, such as information they need
Includes dynamic processing like change, and process possibility to create
demands, by using possible values expenses for for analyzing
prefilling and proposals displaying purchase orders. supplier invoices with
source lists, purchase already while typing advertising agency purchasing spend,
provisioning of fields available sources of Support automated or w/o reference to a
information records contract target services or IT suppliers, and
as well as templates supply to overall and manual purchase order, view,
are supported value or target hardware into contracts in real-
to minimize errors. A increase efficiency processes and correct
quantity updates Purchasing time
standard integration and speed of the inaccurate supplier Categories to
into Ariba Network is sourcing process invoices directly . A organize spend,
provided natively standard integration responsibilities, and
into Ariba Network is organizations
provided natively
Use Self Service Requisitioning and
shop in 3 steps with 1 UI Integrate your Business Network
38
SAP S/4HANA Sourcing and Procurement
Streamlined Procure to Pay Solution Capabilities

Operational Self-Service Requirement Purchase Order Service Purchasing Purchase Order

Purchasing Requisitioning Processing Processing and Entry Collaboration

Collaborative
Sourcing and Operational Contract
Source Assignment
Contract Management
Management

Invoice and
Payables Invoice Processing Accounts Payable Invoice Collaboration
Management

Supplier Classification and

Supplier Evaluation
Management Segmentation

Procurement Real-Time Reporting

Spend Visibility
Analytics and Monitoring

Diagram is highlighting the enhancements made in the individual procurement areas between releases S/4HANA OP1610 and OP1709

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 39

SAP S/4HANA Procurement
Extended LoB scope for 1610 Shipment

Additional LoB Solutions**

BUYER Digital Handshakes SUPPLIER

Request for Quotation Request for Quote Sourcing

/ Supplier Quotation Quote / Award Collaboration
▪ Leverage Supplier
Collaboration, Business
Network and Guided End- Purchase Orders
User Buying and integrate with PO confirmation Order
S/4HANA Procurement Purchase Order Collaboration
Ship Notice
processing
▪ This will allow customers more Goods Receipts
choice with true hybrid
scenarios and incremental
Invoices
deployments
Invoice
▪ Leverage Digital Handshakes CC-Invoice; MM invoices
Collaboration
between Buyer and Supplier Invoice
Invoice Status Update
to take more control of your
Business Network in Payment Proposal Discount
Procurement Management
Early Payment
▪ New Sourcing Request out of
S/4HANA into Ariba Invoice
Payment Remittance Advise Collaboration

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 40

* Additional License
** Additional Installation & License
 SAP S/4HANA Sourcing and Procurement 1709

Centralized purchase requisitions through hub deployment of SAP S/4HANA

Background
• Significant number of customers (typically large
size) with SRM hub deployment connected to
multiple backend systems use self-service
procurement
• These customers require smooth transitioning
from the Business Suite (SRM) to S/4HANA
• Central requisitioning is the first to step towards
providing full procurement hub capabilities
Benefits
• Leverage economy of scale by consolidating
purchase requisitions to a central procurement
function
• Transition path to S/4HANA for Business Suite
(SRM) customers with procurement hub
deployment
• Enterprise-wide self-service procurement and
approvals with consumer-grade UX via Fiori
apps
Technical
• Enables the requisitioning process to run on the
centralized hub system, with the follow-up
documents (e.g. purchase orders) being created
in the back-end systems
• Replication of source of supply from backend
systems as import to the central procurement
catalogue
• For 1709, only SAP ERP is supported as
compatible back-end systems

Current S/4HANA 1709 Future

SAP SRM SAP S/4HANA SAP S/4HANA

SAP ERP SAP ERP SAP ERP SAP ERP SAP ERP SAP ERP SAP ERP SAP S/4HANA SAP S/4HANA

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 41

SAP S/4HANA Sourcing and Procurement 1709 On Premise
FIORI Apps for Procurement
Object Pages with
Transactional Analytical
Contextual Navigation
Task-based Access Insight to Action Search and Explore
Access to tasks like change, create, or entire processes with guided Visual overview over a complex topic for monitoring or tracking View on essential information about an
navigation purposes object and contextual navigation between
related objects
1. All Approvals via Fiori Inbox Professional 1. Purchase Order Value 21. Purchase Requisition Item Types
(Purchase Requisition, Purchase 19. Manage Purchasing Info Records 2. Non-Managed Spend 22. Purchase Requisition Average
Order, Contract, Supplier Invoice Approval Time
and Service Entry Sheets) 20. Manage Source Lists 3. Unused Contracts 1. Purchase Requisition
Manage RFQ Contract Expiry 23. Purchase Requisition To Order Cycle
2. Create Purchase Requisition 21. 4. 2. Purchase Requisition Item
Time
3. My Purchase Requisitions 22. Manage Quotations 5. Off-Contract Spend 3. Purchase Order
24. Purchase Requisition No Touch Rate
4. Confirm Goods and Services 23. Manage Purchasing Categories 6. Contract Leakage 4. Supplier Invoice
25. Purchase Requisition Item Changes
Manage Purchase Requistions 24. Manage Activities 7. Purchasing Spend
5. 26. Purchase Order Items by Account 5. Purchasing Info Record
Manage Purchase Orders (incl. 25. Monitor Tasks 8. Invoice Price Change Assignment
6. 6. Purchase Contract
Create) 26. Process Tasks 9. Purchase Order Average Delivery 27. Purchase Contract Items by Account
Time 7. Purchase Contract Item
7. Manage Purchase Contracts 27. Upload Supplier Invoices Assignment
Mass Change to Purchase Orders 10. Spend Variance 8. Purchasing Category
8. Manage Sources of Supply 28. 28. Purchase Requisition Items by
9. Manage Supplier Invoices (incl. 29. Mass Change to Purchase 11. Overdue Purchase Order Items Account Assignment 9. Supplier
Create) Requisitions 12. Purchasing Group Analysis 29. Supplier Invoice Items by Account 10. Material
My Purchasing Document Items Mass Change to Purchase Operational Supplier Evaluation Assignment
10. 30. 13. 11. Purchasing Category
11. Supplier Invoice List Contracts 14. Supplier Evaluation By Time 30. Monitor Supplier Confirmations
12. Request for Quotation
12. Post Goods Receipt for Purchase 31. Mass Change to Scheduling 15. Supplier Evaluation 31. Monitor Purchase Requisition Items
Agreements 13. Supplier Quotation
Order By Price 32. Monitor Purchase Order Items
13. Evaluate Suppliers 32. Mass Change to Purchasing 16. Supplier Evaluation By Quantity 33. Monitor Purchase Contract Items 14. Quota Arrangement
Inforecords
14. Monitor Responses 17. Overall Supplier Evaluation 34. Monitor Request for Quotation
33. Manage Source Lists Items
15. Supplier Evaluation Response 18. Supplier Evaluation by
34. Redistribute Purchase Requisition Questionnaire
16. Procurement Overview Page Workload
17. Manage Quota Arrangements 19. Value Contract Consumption
35. Manage Service Entry Sheets
18. Manage Purchase Requisitions 20. Quantity Contract Consumption

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 42

New Apps with 1709
SAP S/4HANA Sourcing and Procurement 1709 On Premise
Release Highlights
Operational Procurement Supplier Management
• Business workflow for purchase requisitions, purchase order and • Reminder for evaluation responses and activity management
invoices • Define Supplier evaluation weighting and scoring in general and
• SAP Fiori 2.0 UX – notifications for purchase requisition approvals based on purchasing categories
• Enhanced Document Flow and Type-Ahead for Free-Texts in Self- • Adjust Supplier Evaluation Scoring
Service Requisition • SAP Fiori 2.0 UX - Create activity using SAP CoPilot
• New Fiori Apps for Monitoring and Mass Change of purchasing
documents
Invoice and Payables Management
• Central Requisitioning in S/4HANA allows for Purchase Order
• Invoice integration to SAP Fieldglass
Creation in satellite ERP system
• Invoice posting with reference to asset
Sourcing and Contract Management • Upload Supplier Invoices
• Request for Quotation and Quote Comparison in SAP S/4HANA
• Integration of S/4HANA and Ariba Network and Ariba Sourcing to Purchasing Analytics
conduct sourcing events and create or update follow-on documents in ▪ Predict purchase-order spend based on open purchase requisitions
SAP S/4HANA and delivery schedules
• Analytical monitoring of request for quotation items and contract ▪ Supplier performance monitoring for hard and soft facts in the
items Procurement Overview Page
• Approval for Supplier Quotation Awarding ▪ Predictive analytics for contract consumption
• Fiori Apps for Scheduling Agreement ▪ Multi-dimensional report for purchasing spend
• © 2017
LegalSAP SE Content Management
or an SAP affiliate company. All rights reserved. ǀ INTERNAL 43
S/4HANA Roadmaps
Edge2Core – Roadmap for next generation order management
with SAP Hybris Revenue Cloud and SAP S/4HANA
SAP Hybris Revenue Cloud
Configure-Price-Quote (CPQ) Order Management Billing & Entitlements
▪ Bundling of tangible and digital products ▪ Backend-agnostic order management ▪ Subscription management
supporting one-time, recurring and pay-per- ▪ Order lifecycle and exception management ▪ Metering integration & rating of high-volume
use pricing models ▪ Rule-based orchestration and distribution of usage
▪ Pluggable pricing & configuration that allows complex product bundles ▪ Flexible pricing and Pay-per-use
to leverage existing SAP CPQ engine ▪ Dynamic sourcing across multiple fulfillment ▪ Real-time visibility of usage and combined
▪ Quotation lifecycle management with internal systems (SAP/non-SAP) revenue streams
and external collaboration ▪ Support of revenue share models

Tight integration and extension of existing Sales & Distribution capabilities in SAP S/4HANA

Sales & Distribution Fulfillment incl. Invoice Creation & Sub-Ledger

ATP and Delivery Sourcing
Order Distribution Integration

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 45

Edge2Core – Roadmap for Networked and Collaborative Commerce
with SAP S/4HANA Sourcing & Procurement
Business Network enabled Supplier Collaboration

Collaborative Planning & Services Management and Travel & Expense Invoice workflow
Sourcing Procurement Management & Management
Optional Ariba P2P

Operational Procurement in SAP S/4HANA Enterprise Management

▪ Requirements Processing with Operational ▪ Purchase Order Processing
Source of Supply Assignment ▪ Simplified Service Purchasing
▪ Self-Service Requisitioning ▪ Complex Services
▪ Approval Processes ▪ Operational Contract Management and Call
Offs
▪ Invoice Processing for Financials and
Logistics Invoice Verification
▪ Analytics
▪ Supplier Evaluation

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 46

Edge2Core – Roadmap for Supply Chain Management Integration
in SAP S/4HANA

Supply Chain Planning Integrated Business Planning (IBP) Supply Chain Execution Platform
(New Unified Platform)

Supply Chain Control Tower Extended

Advanced Planning & Optimization Transportation
Warehouse
(APO - DP, SNP, PP/DS, GATP) Management
Sales & Operations Planning Management

Supply Network Collaboration (SNC) Supply & Track & Trace

Demand Inventory
Response
SAP HANA Platform SAP HANA Platform SAP HANA Platform

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 47

Edge2Core – Roadmap for Manufacturing with SAP S/4HANA

SAP On-Premise Solutions SAP Cloud Platform

▪ Asset Intelligence Network (AIN)
▪ Advanced Planning & Optimization (SAP APO)
▪ Digital Manufacturing Insights*
▪ SAP Manufacturing Execution Suite (ME, MII, PCo)
▪ Integrated Business Planning
▪ Collaborative Demand Manufacturing*

SAP S/4HANA Manufacturing

▪ Available-to-Promise ▪ Manufacturing Engineering*
▪ Inventory Management ▪ Materials Requirements Planning
▪ Extended Warehouse Management* ▪ Manufacturing Planning and Scheduling (PP/DS)*
▪ External processing/Subcontracting ▪ Manufacturing Execution and Orchestration for Complex Assembly*
▪ Quality Management

* planned innovation

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL

* New or enhanced functionality 48
Edge2Core – Roadmap for SAP S/4HANA Research and Development

Connected Products on SAP Cloud Platform

Embedded Systems Project and Design Collaboration
• Integrate mechanics, electronics, and software into • Provide virtual collaboration on engineering
Smart Connected Products. documents and 3D designs
• Enable requirements-driven Systems Engineering • Plan and execute collaborative tasks across
• Link engineering master with digital twin completing the company boundaries
extended supply chain • Connect IoT, Digital Core, and Business Networks
creating seamless value chain

Research and Development in SAP S/4HANA

Enterprise Portfolio and Project Management Formulation and Engineering Engineering Control Center
• End-to-end, transparent project management • Process Industries: Specification, Recipe Development • Consistent integration of authoring tools along the
with real-time decision support • Discrete Industries: Engineering BoM, Engineering Record, value chain
• Compelling SAP Fiori UX and HANA-optimized Handover to Manufacturing • 360 degree product view including mechanics,
data model • Variant Configuration electronics, software, and simulation etc.

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 49

Roadmap for Master Data Management for SAP S/4HANA and the complete
enterprise
SAP Master Data Governance providing master data in corporate quality across the complete enterprise landscape
Central master data governance De-central master data ownership Advanced analytics and hierarchy
and master data distribution and master data consolidation management for master data
▪ Workflow-driven governance ▪ Load master data from any source ▪ Quality issue detection and
processes ▪ Master data standardization, mass matching remediation
▪ Staging, validation, and approval and best record calculation ▪ Process analytics and SLA handling
▪ Master data distribution ▪ Supports analytics and operational use ▪ Enhanced hierarchy management
cases

Master data maintenance in SAP S/4HANA Enterprise Management to efficiently run business processes

Central master data domains Master data analytics Basic hierarchy handling
(Business Partner and Product) (quality KPIs and monitoring) for master data

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 50

Thank you.
Contact information:
STEFAN BATZDORF
S/4HANA Expert, MEE Pre-Sales
Hasso-Plattner-Ring 7, 69190 Walldorf
+49 6227 7-43204
stefan.batzdorf@sap.com