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With SAP HCM Cloud Service

The Digital Core


and Support

Speaker’s Name/Department

Date, 2015

Arne Neumann
Senior Director, Business
SAP S/4HANA Customer Workshop 2016 Development SAP S/4HANA
September 7
Continental Hôtel Lausanne
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19 Months After Launch

3.700+ Convergent IS 270+


Licensed Customers Live Customers
Bundesdruckerei

1200+ La Trobe University


Diakonie
Active Customer Projects Asian Paints Michaelshoven
Geberit
SAP
Innovabee
In all 26 industries & 66 countries Airbus Optronics
Uniorg

32 in SAP HANA Enterprise Cloud


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Public 2
How SAP S/4HANA Makes the Digital Core Real

Improved user New business capability


Simpler data model + experience = Improved productivity

Unified data model


Drill down to detail
eliminates FI-CO batch + and KPI “cockpit” = Continuous soft close
Examples

reconciliation

Transactions run without Instantly-refreshed Reduced processing time


table locks + KPI’s = and carrier fees

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Simpler
What Does it Mean to Simplify? Data Model

AN ANALOGY: SENDING A PHOTOGRAPH TO SOMEONE FAR AWAY

Camera Film Darkroom Paper Postal Service Recipient Complicated and with enormous
resource expenditure. Individual
components were eventually
sped-up to get the end-to-end
process to one day minimum.

Not merely faster—the


“Camera” Internet Recipient
“architecture” is reduced. As a
result, the process happens
instantly and can be done any
time and in different ways for a
fraction of the cost.

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Simpler
Simpler Data Model: Inventory Management Example Data Model

Traditional disk-based ERP In-memory ERP

Aggregates History Document

MSTQ MSLB MSTQH MSLBH MKPF

On the fly aggregation


MSTE MSKU MSTEH MSKUH MSEG

Inventory movements
MSTB MSKA MSTBH MSKAH

Material Master
MSSQ MKOL MSSQH MKOLH Master data with
Stock aggregates
MATDOC
MSSA MCHB MSSAH MCHBH MARC MARD Material Document

MSPR MSPRH MARDH


Master data without Stock aggregates
MARCH MARDH MARC MARD
MARCH
Master Transactional 26 aggregate
data data tables

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Improved
A Digital Interface for a Digital World User Experience

FROM THE PAST… …TO THE PRESENT

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New
Example: Soft Financial Close Anytime Capabilities

Traditional System Close


batches
Consolidation
batches
With SAP S/4HANA

Reporting on demand

Initial period Close and consolidation Initial period Close and consolidation

With traditional system: User With SAP S/4HANA


Ad Hoc
Interaction
 Close activities that don’t begin until period end  Real-time system with key performance indicators (KPIs) instantly refreshed
 Multiple batch-run dependencies  Elimination of end-of-period batch bottlenecks
 Batch bottlenecks that delay downstream activities Traditional With SAP S/4HANA  Continuous intercompany reconciliation
 High error-correction efforts  Continuous financial reporting visibility
 Complex issues that are postponed until after close  Profitability analysis and line-item detail reconciliation
 Time-pressured resolutions  Automation for routine tasks
 Delayed visibility into reporting Process Excellence  Full management visibility of close tasks

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New
Example: Post Goods Issue (PGI) Capabilities

BUSINESS CHALLENGES RESOLUTION IN ECC 6.0


• The client’s facilities run 24/7 including high-volume, small lot size shipping transactions • Repeat attempts to post PGI until there is no lock
• Materials are shared across plants and multiple shipments are frequently • Reschedule background jobs for PGI
executed in parallel • Rethink batch strategy for materials
• Experiencing instances where PGI failed because the material data (batch stock) • Identify SAP Basic changes to reduce number of locks
was locked:
• Goods movement is posted
• Quantity on hand is updated in aggregation tables

• Delays trying to post goods issue while the truck driver is waiting RESOLUTION IN SAP S/4HANA
The Batch Stock tables no longer exist. Only the material movement
needs to be created without regard for the actual stock level.
Transactions can be run in parallel without table locks.

Reduced transaction No carrier Reduced risk of users


processing time detention fees working around the system

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S/4HANA for Manufacturing Function
Vectus Industries drastically lowers cost with S/4HANA

Key benefits of S/4HANA

• India’s leading and fastest 6 Hours 4  0 Hours


growing pipe and water Gain per daily productivity for users: before S/4HANA Server downtime and no server restart needed
storage solution
they routinely worked 14 hours a day due to server anymore
• Live on S/4HANA in 4 downtime and manual processing
months
• 28 locations in India, 24 of
them live in May 2016; 4
others underway (phase 2)
15 min  3 min 600 invoices
Average processing time per invoice with 10-15 Processed per day
“ items

“ There is a tremendous
improvement in operating 15% lower costs 0 Discrepancy
efficiency. Other customers
should go for S/4HANA. Production and operating costs with higher Prior to S/4HANA implementation, 2 system could
Manish Sinha, Head of IT at automation produce results as different at 2 tons of scrap at the
Vectus Industries and visibility into costs vs. price entry vs. 18 tons at the plant. With S/4HANA,
discrepancies are eliminated

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MEMEBOX

“WE LOOK TO SAP AS


A STRATEGIC PARTNER THAT
CAN GUIDE US TOWARD DIGITAL
TRANSFORMATION.”
– Rio Kim, CFO, MEMEBOX Inc.

100% Increase 50% Increase 50% Decrease


in revenue since in sales productivity in closing time since
the launch of SAP with on the go data the launch of SAP
S/4HANA Finance access S/4HANA Finance

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SABRE

“S/4HANA IS EMPOWERING
EMPLOYEES WITH TOOLS AND
INSIGHTS THAT DRIVE NEW WAYS
OF THINKING…”
– Steve Strout, Vice President corporate systems, SABRE

300 24 27%
Complex Integrations Distinct systems Reduction in custom
consolidated into three objects

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Contextual insights at the point of decision

Review Material Analytics and Select Now All On


Shortage Insights Supplier One Screen

Check Budget
Overview

Purchase Check Average


Supplier Delivery
Manager Performance
Enter Material Order Cross Sell
Choose best supplier
and complete material
order entry  Faster customer delivery
Review Detail  Larger average deal size
Report
 Fewer warehouse stock outs

*Screenshots shown are for demonstration purposes only and are not final product commitments

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New
Reduced IT Complexity Capabilities

Traditional DB on HANA S/4HANA Current

593 GB
118.6 GB
42.4 GB
8.4 GB

Example with Finance data

IMPACT ON IT LANDSCAPES:
• Reduced storage
• Less replication
• Less network load
• Faster restart after failover

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

The Digital Core


The Digital Core

Enterprise Management

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


SAP S/4HANA SAP S/4HANA
MARKETING AND ASSET RESEARCH AND
SALES SERVICE
COMMERCE MANAGEMENT DEVELOPMENT

Industries
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For external roadmap and
SAP S/4HANA Enterprise Management further details please visit:
www.sap.com/roadmaps
For details on innovations
Industry Roadmap (on-Premise) (features/benefits) please visit:
SAP Innovation Discovery

All Industries released for SAP S/4HANA Finance

SAP S/4HANA in Materials Management and Operations1)


Release 1511 Release 1610 (October 1610)
Industries Industries released
2)
• Chemicals with major coverage
• High-Tech • Aerospace & Defense Release of additional
• Higher Education & • Automotive industry scenarios
Research • Banking including Oil & Gas
• Industrial Machinery & • Consumer Products Release of additional
Components • Defense & Security +
• Insurance industry scenarios
• Engineering, Construction &
• Life Sciences Operations First simplified
• Mining • Mill Products industry Solutions
• Professional Services • Public Sector e.g. Healthcare, Retail,
• Sports & Entertainment • Utilities Public Sector
• Telco
• Travel & Transportation
• Wholesale
Solution today3) Planned innovations Future direction
1) For restrictions related to S/4HANA Finance 1503, see SAP Note 2119188
2) Limitations related to selected industry specific scenarios like CWM and DSD. See SAP Note 2214213 for details.
3) As of S/4HANA 1511 SP01 (released on February 3rd 2016)

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Planned Key Innovations SAP S/4HANA Enterprise
Management 1610

Advanced Availability to Entire S/4HANA Finance


The Fiori UX of SAP S/4HANA
Promise scope to Core

Integrated Extended Embedded Software in Industry to Core


Warehouse Management Product Development (DIMP, Oil, Retail)

Integrated Quality Effective Order Management


Simplified Procurement
Management & Billing

Optimized Portfolio and Project Real time Inventory Manage- Accelerated Material
Management ment & Material Valuation Requirements Planning

New innovations Existing & enhanced innovations


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deployment options tailored to our customers needs

Applications
(S/4HANA Enterprise Mgmnt,
Applications
engines, (users))
(BYOL/subscription) ONE ONE Standardized No
SAP HANA
SAP HANA
Price Contract packages modifications
(Runtime or Enterprise
(BYOL/Subscription)
Edition)

Application license subscription


Infrastructure
SAP HANA platform subscription
Infrastructure and Services
Application
Management Service Application Management Service
Cloud Enterprise Support

On premise Custom HEC S/4HANA Cloud S/4HANA Cloud


Private Option (Public Option)
On premise deployment The SAP HANA Standardization, TCO and Highly standardized,
of S/4 HANA will Enterprise Cloud (HEC) scalability of the cloud multi-tenant cloud
continue to deliver new offers individually sized combined with the full services covering
innovations, leveraging infrastructure and functional scope, selected LoB- and
the potential of in- application management extensibility and industry scenarios and a
memory technology and services as additional, geographical reach of the comprehensive ERP
new user interfaces. customer specific options S/4HANA on premise scope
to software licenses. solution

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SAP S/4HANA Adoption Paths

ERP System On-Premise


EXAMPLE:
New New or existing SAP Customer
Implementation Non-SAP implementing a new SAP S/4HANA
System S/4Cloud system with initial data load

EXAMPLE:
System ERP System On-Premise
Conversion Complete conversion of an existing
SAP S/4HANA SAP Business Suite system or selective

ERP System
Region A On-Premise
EXAMPLE:
Landscape ERP System
Transformation Region B Central Finance
ERP System S/4Cloud
Region C

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The Digital Core

HANA Platform

Immediate Intelligent Integrated


Empowering business users with Beyond automation, Not only between your departments,
insights to act in the moment. to predictive suggestion. but connected to the world.

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Next Steps

HOW CAN I LEARN MORE?


WWW.SAP.COM/S4HANA

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With SAP HCM Cloud Service
and Support

Speaker’s Name/Department

Date, 2015

Arne Neumann
Senior Director, Business
Development SAP S/4HANA

© 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 21