Building the business case for

SAP S/4 HANA

John Appleby Carl Dubler
GM, Bluefin Solutions Inc. Product Marketing Director, SAP
What you will learn today
• S/4HANA Introduction
 Differences between Suite on HANA and S/4HANA
 Deployment Options
• The S/4HANA Roadmap
 Migration planning
 Example migration schedule
• The S/4HANA Business Case
 Components of a good business case
 Business benefits
 Example business scenarios

2
S/4HANA Introduction
What is S/4HANA?
• The successor to SAP R/3 and SAP Business Suite
• New SKU and Code Fork
 Available on the SAP HANA database
• S/4HANA themes:
 Renewed interface with Fiori UX
 Simplified structure with SAP HANA
 Cloud deployment first

4
SAP R/3 vs S/4HANA
SAP
SAP R/3
S/4HANA
Runs on AnyDB SAP HANA only

Built for lowest Built using all

capability capabilities of
database SAP HANA

Full use of
Limited use of
database
database
functionality e.g.
functionality
geospatial, graph

Client/Server
Fiori User
SAPGui User
Experience
Interface
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S/4HANA Deployment Options
Cloud
• Shared HANA multi-tenant DB
• HANA Cloud Platform
Extensions
• Quarterly Release Schedule
• 100% Managed by SAP
• Automatic Updates
On-Premise
• On-Premise or Hosted
• ABAP Customization
• Yearly Release Schedule
• Managed by Customer/Partner
• Update schedule defined by
customer
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 SAP S/4HANA Roadmap
1503 1506 1509 1511

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 SAP S/4HANA Customer Journey

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The S/4HANA Roadmap
The S/4HANA Roadmap
• S/4HANA roadmap varies
• Existing ECC Environment
 Upgrades, Patches, Unicode Conversion
 Test Management, Change Management
 Custom Code Remediation & Reduction
 Data Reduction & Near-line Storage
• Build of technical readiness
 Hardware Procurement
 SAP BW or Agile Datamart

10
The S/4HANA Roadmap
2015 2016

Roadmap

Sandboxes

HW Procurement

BW Housekeeping

BW Near-Line Store

SAP BW on HANA Real-Time Analytics

Solution Manager

Custom Code Remediation

ECC Housekeeping

Test Management

Suite on HANA

S/4HANA

Cloud Migration
Year End
The Business Case
Components of a business case
• Reduction in Stock • Reduction in Days
• Reduction in Outstanding
Hardware Cost • Reduction in batch
• Reduction in Project schedule
Costs

1. 2.
Financial Quantifiable

4. 3.
Observable Measurable

• Better Business
Engagement
• Improved Morale
• Customer
Satisfaction
1
Tip: try to move benefits from Observable  Measurable  Quantifiable  Financial 3
Quantifying benefits
• Verify capabilities • Validate based on
• Solidify Business experience of others
Case • Relatively
inexpensive

Reference
Pilot / PoC
Sites

Simulation Benchmarking

• Services • Compare against

organizations provide similar companies
simulation using your • SAP Value
business conditions Engineering
1
Remember: try to move benefits from Observable  Measurable  Quantifiable  Financial 4
Business benefits matrix
Doing new things Doing things better Stop doing things
• Reduction in annual maintenance costs of hardware
and infrastructure

• One time reduction in stock

Financial • DBA Tasks
• Increase total shopping cart size and value

• Reduced overtime due to less integration pressures

• Reduced project costs

Quantifiable • Reduction in SLA misses for data availability

• Increased adoption
• Simplification of the solution stack
Measurable • Shorter development time due to simplification of the as BWA Blades removed
architecture

• Mix non-SAP and SAP data into

one data model in real-time
• 30x Improved average query time leads to faster and
Observable • Ability to navigate from company
better decision making and support
level to document level in one
report

1
5
Where to add capabilities and value
• Finance soft close
• Planning and predictive finance
• Marketing to audience of one
• Material Requirements Planning (MRP)
• Advanced Available to Promise (ATP)
• High-volume inventory backflush
• Engage talent across the organization
• HR compliance across the organization
• Continuous cross-system control monitoring
• Fraud detection

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Example: finance soft close

Description: A traditional measurement of the finance organization is the speed at which a company closes its books. In
benchmarking studies, SAP Value Engineering found that the top quartile–performing companies achieve the annual
Use case financial close in 26% fewer days than their peers, resulting in 61% lower General Ledger and closing costs.
Industry relevance: Cross-industry

Unique value of  Drive one common view of financial data to help ensure enterprise-wide consistency to minimize reconciliation
SAP S/4HANA  Enable real-time processes for instant insight to make timely, relevant decisions
 Use prediction, simulation, and analysis to evaluate financial implications of strategic business choices

Top  Universal journal for both financial and controlling data Business  Real-time oversight of close progress
capabilities  On-the-fly aggregation of transactional tables innovations  Real-time insight into financial results
 Central finance to consolidate many back ends  Continuous intra-month processes

 SAP S/4HANA, on-premise edition  400 hours cut from period-end close
Quantifiable
Solutions  SAP S/4HANA, cloud edition value*  86% faster real-time analytics
 SAP Simple Finance solution  2.5x faster cost postings

*SAP software implementation

Business Process View: Finance soft close
Traditional system With SAP S/4HANA

Close Consolidation
batches batches

Reporting on-
demand

Initial period Close & consolidation Initial period Close & consolidation

With traditional system: With SAP S/4HANA:

 Close activities don’t begin until period end  Real-time KPIs
Traditional With SAP S/4HANA
 Multiple batch-run dependencies  Elimination of end-of-period batch
 Batch bottlenecks that delay downstream  Continuous intercompany reconciliation
 High error-correction efforts  Continuous financial reporting visibility
 Complex issues postponed until after close Process excellence  Line-item detail reconciliation
 Time-pressured resolutions  Automation for routine tasks
 Delayed visibility into reporting  Full management visibility of close tasks
Business Scenario Recommendation Tool

• Easy and Free of Charge

 Intuitively get recommendations for
business scenarios based on your system
and industry
• Efficient
 You only spend minutes to request a
report
• Transparent
 You’ll get a list of relevant business
scenarios and other recommendations

Request a free report at www.s4hana.com »

John Appleby
john.appleby@bluefinsolutions.com
@applebyj
bluefinsolutions.com/johnappleby

Carl Dubler
carl.dubler@sap.com
scn.sap.com/people/carl.dubler