The Digital Core

Roberto Fraccapani, SAP Enterprise Architect Team Leader

28.09.2017

PUBLIC
Agenda

§ S/4HANA Intelligent ERP for a Digital World

§ S/4HANA Adoption Path

§ S/4HANA Pricing Model

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Customer
Legal Disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This
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warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular
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responsibility for errors or omissions in this document, and shall have no liability for damages of any kind including without limitation direct,
special, indirect, or consequential damages that may result from the use of this document. This limitation shall not apply in cases of intent 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.

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Customer
 We’ve come a long way together

ü Integration ü 45 years of innovation across industries

ü Standardization ü 300,000+ customers
ü Globalization ü 74% of the world’s transaction revenue touches an SAP system
ü Trust ü Always providing multiple ways of innovation adoption

SAP R/2 SAP R/3 SAP ERP SAP Hana Suite on HANA
TX/ Apps on Connectivity
Mainframe Client/Server www / mysap.com In Memory The Digital Core
Hana (IoT, ML,BC )

1972 1992 2004 2011 2013 2015 2017

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Customer
The Bi-Modal Architecture of the Modern Enterprise
A Digital Core and a Digital Innovation System

Mode 2: Digital
Mode 1: Digital Core Innovation
Connect all parts of SAP Leonardo Tailor, Integrate &
SAP S/4HANA IoT Expand
your business to SAP Hybris
run live with SAP SuccessFactors
Machine Learning the Core with SAP
Big data Cloud Platform
S/4HANA Concur
Modern Analytics
SAP Fieldglass
Blockchain
SAP Ariba
Data intelligence

SAP HANA SAP Cloud Platform

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Customer
Digital Technology is transforming how Business gets done
The future of Enterprise Systems will be determined by new technologies

Predictive
and cognitive In memory

Networks

User
experience
SAP S/4HANA
Digital Core
Blockchain

Cloud Robotics and

machine learning
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Customer
 SAP S/4HANA
The foundation for the Digital Enterprise

Instant insight Intuitive user experience Flexible and nondisruptive

In-memory enabled Role based design Easier to deploy and extend

Cloud
People centric
Any device
Flexible workflows
Active consumption SAP HANA 2.0 Decision support, automation & IoT
with SAP S/4HANA 1709 Cockpits with Exception based worklists
On Premise
Support Scale-out Embedded analytics, prediction &

Simple data structures Simulation

Active-Active Scenario

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Customer
What Does it Mean to Simplify?

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.

“Camera” Internet Recipient Not merely faster—the

“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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Customer
Simpler Data Model: Inventory Management Example

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 MATDOC

MSSQ MKOL MSSQH MKOLH Master data with Material Document
Stock aggregates

MSSA MCHB MSSAH MCHBH

MARC MARD
Master data without Stock aggregates
MSPR MSPRH MARDH

MARC MARD
MARCH MARDH
MARCH
Master Transactional 26 aggregate
data data tables

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Customer
A Digital Interface for a Digital World

From the Past… …To the Present

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Customer
Consumer-grade User Experience
Benefit from higher user productivity

SAP Jam social software platform

Role-based with one Search across and within apps to get integrated to provide instant
common role definition immediate answers feedback on notifications and
group activity

News and feeds to Dynamic charts to

enhance collaboration Color coding to alert user to any
overdue, new, or immediate provide high-level,
actions real-time overview
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Customer
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

Domain Specific Infos and Actions

Users will quickly get an overview of what needs their
attention 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

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Customer
SAP S/4HANA Embedded Analytics
SAP S/4 HANA
(scope of standard delivery)

SAP Analytics products

SAP Fiori UI (SAP Analytics Cloud, SAP Lumira, SAP
Visualization analytical apps, reports, KPIs,… delivered as part of SAP BusinessObjects Analysis, …)
S/4HANA, extensible by the customer

Transient analytical
Access Odata services
queries

Modelling Virtual Data Model (CDS)

Persistency Database tables on SAP HANA

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Customer
SAP Digital Assistant: Copilot
The Personification of Machine Learning at SAP

Conversational (Multi-Modal) UI
Communicates in natural language via text, gesture or voice.
Enables to converse with others, within the business context.

Business Context Awareness

Offers insights based on roles, context and business situation.
Recognizes business objects on the screen or within conversations.

Quick Actions
Offers suggestions to help decide on the proper course of action.
Quick creation of business objects, prompting for minimal input.

Learns and Recommends

Starting with pre-defined business rules and gradually learning from behavioral
data, recommending next best actions to the user.

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Customer
SAP Cash Application
Intelligent invoice matching powered by Leonardo machine learning

History
Payments Matching
Invoices proposals
Machine Learning

SAP Cash Application intelligently learns matching criteria from

historical data and automatically clears payments

Automation Speed Reduce TCO Integrated with S/4

§ Increase efficiency § Faster payment matching § Learns from historical § Integrated with S/4HANA
data Cloud and On-premise
§ Reduce errors § Reduce DSO
§ Learns from § Compliments standard
§ Enable finance to focus § Increase liquidity rules
on strategic tasks accountant behavior
§ Improve customer service.
§ Maintain current
§ Does not require on-
going maintenance processing workflow
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Customer
SAP Cash Application
Intelligent invoice matching powered by Leonardo machine learning

SAP Cash Application

Cloud On premise Cloud

Training Historical clearing documents Machine-learning training

process

Open bank statement

Inference items plus receivables
Run invoice-matching
and
service
clearing
Matching proposals
process
Matches autocleared,
proposals viewed over
SAP Fiori apps
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Customer
S/4HANA Adoption Path
Transition to SAP S/4HANA
Adoption Paths

EXAMPLE:
On-Premise
New Third-party New or existing SAP Customer
Implementation System implementing a new SAP S/4HANA
S/4HANA Cloud system to migrate their data their legacy
systems

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

ERP System
Region A On-Premise EXAMPLE:
Landscape ERP System IT Consolidation: Merge of multiple source
Transformation Region B systems into one new/existing SAP S/4HANA
ERP System S/4HANA Cloud system
Region C

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Customer
SAP S/4HANA – Transition
Scenario 1 – New Implementation

Initial data load

from Legacy or
SAP System
with Migration
Cockpit

Legacy (SAP GUI) / SAP Fiori

Any customers
legacy system SAP S/4HANA Core

SAP HANA

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Customer
 SAP S/4HANA Migration Cockpit
Overview

MIGRATE YOUR DATA

FILES MIGRATION TOOLS CONTENT

SAP S/4HANA Preconfigured migration

Extract Migration Cockpit
objects and mapping

Generation of migration
programs
SAP S/4HANA
Migration Object Modeler Data validation
Legacy
Integration of custom
objects

DATA MIGRATION FOR NEW IMPLEMENTATION SCENARIOS

Any customer legacy system

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Customer
 SAP S/4HANA Migration Cockpit
Speeding time to value S/4HANA Cloud
Third-party
system
The next-generation data migration software S/4HANA
embedded in S/4

• Shorten data migration project duration

by more than 20%
• Highly simplified for SAP applications as
data sources
• Guided procedure takes users through
the migration process: Easy and safe
• No programming by the customer
required
• Flexible for integration of custom
business data including data
transformations
• Included in S/4HANA license and
shipment
• Made for migrating data from SAP and
non-SAP sources into SAP S/4HANA
(on-premise) and SAP S/4HANA Cloud

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Step-by-step guidance through the migration process 21
Customer
SAP S/4HANA Migration Object Modeler

SAP S/4HANA Migration Object

Modeler is part of the SAP S/4HANA
Migration Cockpit
Design tool to easily integrate custom
objects and enhancements
Integration of newly created objects
§ Custom objects
§ SAP standard objects that are not
yet in the scope of the SAP
S/4HANA Migration Cockpit
Customer-specific enhancements
(e.g. add new fields) to SAP standard
objects delivered with the SAP
S/4HANA Migration Cockpit.

Follow this link to SAP Help for the SAP S/4HANA Migration Cockpit

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Customer
 SAP S/4HANA – Transition
Scenario 2 – Landscape Transformation

Technical migration on table level using pre-configured LT

transformation solutions

System Merge of multiple source systems into

one SAP S/4HANA system or transfer of clients
Consolidation
into existing SAP S/4HANA system
M I G R A T E Y O U R D A T A (build-up multiple client system)

Extract

Migration of business units/single entities such

Legacy Selective Data as company code
Transformation
Re-platforming scenarios, e.g. PP/DS
Select – Transform on the fly – Insert
Private Option
Any customer legacy system

Real-time reposting

Real-time reposting of financial transactions

Implementation into Central Finance instance, e.g. to enable
of central centralized reporting using SAP S/4HANA
finance * (synchronization of systems / side-car
scenario)

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Customer
Landscape Consolidation Example

Sales and Service Supply Chain Sourcing

Commerce Planning Procurement BW

Operational
Reporting
Customer Execution SRM

ERP

SAP HANA
Legacy Platform
RDBMS

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Customer
SAP S/4HANA – Transition
Scenario 3 – System Conversion

Software Update
Manager (SUM)
with Database
Migration Option
(DMO)
SAP GUI (SAP GUI) / SAP Fiori

SAP ERP Core SAP S/4HANA Core

AnyDB / SAP HANA SAP HANA

SAP ERP 6.0 (any EhP level)

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Customer
SAP S/4HANA System Conversion
Overview technical process steps

Preparation phase Realization phase

Maintenance Software Update Application specific

Application specific
System requirements Pre checks Custom
Custom code preparation
preparation
planner Manager (SUM) follow-up activities
follow-up activities

Unicode conversion Database migration

Software update
Cross-application & application specific preparation activities
Data conversion

Simplification List

SAP Readiness Check

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Customer
 SAP Readiness Check for SAP S/4HANA
Available for all customers included in maintenance

Ÿ Customers can initiate their SAP ERP system

analysis themselves, getting an overview on
the most important aspects and potential
requirements of an SAP S/4HANA system
conversion (e.g. Simplifications, Custom
Code, Business Functions, Add-ons and
Transactions).

Ÿ A new cloud solution based on SAP Solution

Manager is available for all customers
included in maintenance as of May 29th 2017.

Ÿ Minimum source release is SAP ERP 6.0

EHP 0, any database.

Ÿ Supports all SAP S/4HANA releases as

target.

Ÿ Using the Readiness Check is optional but

highly recommended.

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Customer
SAP Readiness Check for SAP S/4HANA

AddOn’s & Business Functions

Custom Code & Custom Dev
• Custom Code must be analyzed with respect
to SAP S/4HANA compliance, based on the
SAP S/4HANA simplification database
• SAP Readiness Check provides BOM of
affected objects as well as SAP Custom
Development Projects (CDP‘s)
• An in-depth custom code management
activities to follow during project execution
• SAP AddOn’s and Business Functions as well
as 3rd party AddOn’s have to be checked for
their compatibility with SAP S/4HANA
• SAP software is listed and rated
• 3rd party software is listed only
SAP S/4HANA Sizing
• To prepare for SAP S/4HANA, a system
sizing is the baseline for further discussions
regarding the future target size
• SAP Readiness Check summarizes the
technical sizing result so that customers can
further engage internally, with SAP or with
partners to discuss the future target system
size

Simplification items
• Simplification Items represent application or
architecture changes in comparison to
Recommended SAP Fiori Apps
SAP ERP
• SAP Fiori apps recommended based on the
• About 470 Simplification Items exist for
transaction usage history in the evaluated
SAP S/4HANA 1610
system
• They are grouped by business priority (e.g. Transactions
Core Finance) and industry, respectively • SAP GUI transactions replaced or
deprecated in SAP S/4HANA, such as
Classic MM-PUR GUI transactions
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Customer
SAP Readiness Check for SAP S/4HANA
Two examples of the detailed output – accessible via the dashboard

1. How is my custom code impacted when I want to convert my SAP ERP 6.0 system to SAP S/4HANA?

2. Which SAP S/4HANA simplifications impact me when I want to convert my SAP ERP 6.0 system to SAP S/4HANA?

SAP Help Portal: SAP Readiness Check and SAP note 2290622

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Customer
SAP Transformation Navigator
Moving to an application landscape centered on SAP S/4HANA

Today Questions Tomorrow

Integration?

Path to get Value of

there? innovation?

?
Cost of Cost of new
migration? solution?

Which solution to use in

which use case?

Give me guidance, not choices!

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Customer
SAP Transformation Navigator

Follow this link to SAP Transformation Navigator

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Customer
SAP Transformation Navigator generates the set of customer guides

SAP Transformation Navigator

(self service tool)
Customer Guides

Business Guide Technical Guide Transformation Guide

Why? What? How?

Generates

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Customer
 SAP S/4HANA 1709
Release strategy for 2017/2018 and definition of deliveries

2017 2018 2019

Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4

Maintenance Line

SAP S/4HANA 1709 SPS00* FPS01* FPS02* SPS03*

New release incl. new Feature Package Stack Feature Package Stack Support Package Stack
technology stack (technically SPS 01) (technically SPS 02) (technically SPS 03)
(NetWeaver AS ABAP 7.52 for S/4HANA,
SAP HANA 2.0 SP01)“
SAP S/4HANA 1809
SPS00*
New release incl. new
SAP NetWeaver Stack

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER * This is the current state of planning and may be changed by SAP at any time without notice. 34
Customer
S/4HANA Pricing Model
SAP S/4HANA
Deployment Options and Pricing

Applications
Applications
(S/4HANA Enterprise Mgmnt,
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 Application Management Service
Management Service
(Cloud) Enterprise Support

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

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

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Customer
S/4HANA Pricing Model

Existing ERP customers New ERP customers

S/4HANA Industry & LoB Solutions S/4HANA Industry & LoB Solutions

Cash Mgmt. Central Finance Cash Mgmt. Central Finance

… … … …
Revenue Revenue Metric Metric Revenue Revenue Metric Metric

S/4HANA Enterprise Management

for ERP customers

Named
Named
Users
Users S/4HANA Enterprise Management
Flat-Fee
Peruser
Per userfee
fee

ERP package
Flat fee (includes 5 Prof. named users)
User

HANA HANA
Already have this
Run-time or Full Use Run-time or Full Use
Already have and
can keep using

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Customer
 Thank you.
Contact information:
Roberto Fraccapani
SAP Enterprise Architect Team Leader
roberto.fraccapani@sap.com

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