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Deep Dive into SAP

S/4HANA Transformation
Using a Best Practices Approach
Kevin Reilly, ASUG Community Advocate S/4HANA
Frank Densborn, SAP Labs Product Manager S/4HANA Migration

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develop or release any functionality mentioned in this presentation. This presentation and SAP's
strategy and possible future developments are subject to change and may be changed by SAP at any
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particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this
document, except if such damages were caused by SAP intentionally or grossly negligent.

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Agenda
Introduction to SAP S/4HANA
SAP S/4HANA System Conversion
SAP S/4HANA Landscape Transformation
SAP S/4HANA New Implementation

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Introduction to
SAP S/4HANA

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SAP S/4HANA
The User Experience
Reimagined

SAP Fiori Intuitive User Experience and a


responsive design
Today
Functional-based applications

Target
Role-based applications

from: One transaction for multiple roles with too much and
complex functionality

to: Decomposed apps for each role with simple functions

from: Multiple entry points for the user and inconsistent user
experience

to: One entry point for the User and UX following


common design directions

This is the current state of planning and may be changed by SAP at any time.

2015 SAP SE or an SAP affiliate company. All rights reserved.

SAP S/4HANA
Data Model Simplification

@BeSchulze

Principle of One Data Model Simplifications


Sales and Distribution

Business Suite

Primary
Document tables
LIKP

VBAK
VBAP

LIPS

(Quantities)

(Valuation via MBEW)

VBRP

MARC

Totals tables
MSTQ

VBFA

S066
S067

MBEW

MARD

VAPMA
VAKPA
VLPMA
VLKPA
Rebate indexOutput mgmt VRPMA
VRKPA
NAST
VBOX
VBUK
VBUP

Inventory Mgmt.

VBRK

Export/impoIndex LIS
rt tables tables tablesStatus tables
EIKP
EIPO

Inventory Mgmt.

MSLB
MSTE
MSTB
MSKU
MSSQ MSKA
MSSA
MKOL

MSTQH MSLBH
MSTEH MSKUH
MSTBH MSKAH
MSSQH MKOLH

MCHB

MSPRH MARDH
MARCH

COFIT
CKMI1

Totals
MBEWH

Index
QBEWH

OBEWH

MKPF

MSSAH MCHBH

COSP

CKMLPP CKMLCR

OBEW

MSPR

Document

MSEG

Finance *

(multi GAAP, multi


currency)
Totals

QBEW

OBEW

Material Ledger

OBEWH

Document
MLHD

BSIS

BSET BSIK BSID BSIM


Indices
BSAS BSAD BSAK

MLCR
MLCRF

BSEG
COBK
COEP

History tables

Master
Data

Sales and
Distribution
VBAK
VBAP

LIKB

LIPS

Inventory
Mgmt

Material Ledger
(multi GAAP, multi
currency)

(Quantities)

FAGLFLEXT
GLFUNCTGLPCT

BKPF

MLIT

MLPP
MLPPF

COSS

Totals CE4*

Documents
FAGLFLEXA
GLPCA
ANEKGLFUNCA
ANEP

COFIS

Finance *

VBRK

VBRP

VBFA

Material

SIMPLE DATA MODEL

data

Reduction of memory footprint

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2015 SAP SE or an SAP affiliate company. All rights reserved.

ACDOCA
BSEG

Flexible rebate management instead of

BSET

THROUGHPUT INCREASE

PRINCIPLE OF ONE

Only main tables remaining, no redundancies


Only one valuation method (Material
Ledger)
Clear separation of master data from transactional
instead of 2 (IM + ML)

COBK

BKPF

Material
Prices

MATDOC

INSERT only on database level (MM-IM),


no locks for standard price valuation

* Actual Data only


Not displayed in lower part: Profit Center Accounting,
Cost based CO-PA, Reconciliation Ledger

cumbersome and expensive redundancies

Innovations: Inventory Management


Simplification
Aggregates eliminated

Business Suite
Aggregates

History

MSTQ

MSLB

MSTQH

MSLBH

MSTE

MSKU

MSTEH

MSKUH

MSTB

MSKA

MSTBH

MSKAH

MSSQ

MKOL

MSSQH

MKOLH

MSSA

MCHB

MSSAH

MCHBH

MSPRH

MARDH

MSPR

MARCH

On the fly
aggregation

Document

MKPF
MSEG
Inventory movements

Material
Document

Material Master
Master data with Stock aggregates

Master data

MARC

Transactional Data
26 aggregate tables

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MARCH

MARDH

MATDOC

MARD

Master data without


Stock aggregates
MARC

MARD

SAP S/4HANA real-time analytics


architecture
Foundation for new class of applications

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

Applications
(incl. insight-toaction)

Operational
Reporting

Query Tools

Zero latency!

SAP
SAP NetWeaver
NetWeaver PLATFORM
PLATFORM

ABAP
ABAP Layer
Layer

SAP
SAP HANA
HANA Database
Database Layer
Layer

Granular
2015 SAP SE or an SAP affiliate company. All rights reserved.

SAP
SAP HANA
HANA Views
Views (Virtual
(Virtual Data
Data Model)
Model)
Core
Core Data
Data Services
Services (CDS)
(CDS)

Physical
Physical Tables
Tables

Instantaneous

Pre-defined

SAP S/4HANA Enterprise Management


Logistics

SAP S/4HANA Enterprise


Management Logistics
comprises generally the
functionality covered by ECC
6.0x logistics

Major Simplifications in the


areas of:

Enterprise Management

Digital Core

Financials

HCM

Logistics General (LO)

Product Lifecycle Management (PLM)

Sales and Distribution (SD)

Materials Management (MM)

Logistics Execution (LE)

Quality Management (QM)

Plant Maintenance (PM)

Customer Service (CS)

Production Planning & Control (PP)

Project Management (PS)

Environment, Health & Safety (EHS)

Others: Global Trade Management, Compensation


Management, Agency Business,

Industry specific Functions:


Discrete Industries Automotive, High Tech, IM&C, A&D, Mill Products,
Chemicals

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Digital Core

Logistics

Inventory Management

Material Requirements Planning

Capacity Planning

Sales and Distribution

Procurement

SAP S/4HANA 1511 Key Logistics


Innovations

Material
Requirements Planning
Fast MRP run, and new
working model for MRP
controllers based on
decision support.

Inventory
Management
Simplified data model
resulting in increased
through-put, flexible
analytics at the most
granular level.

Material
Valuation
Elimination of locking,
increased throughput for
standard price utilizing
Material Ledger, that way
customers can use multicurrencies, valuation
methods per different
accounting laws like GAAP.

Available To Promise &


Backorder processing
New ATP Algorithm based
on HANA embedded in
mass component check in
production

Capacity
Planning
PP/DS Side by Side
with S/4

Order Management & Billing

Procurement

Enable monitoring of end-to-end order-to-cash


process & take actions for any exceptions,
information on the exceptions to resolve the issues,
lower TCO due to data model simplification,
support for the most recent versions of business
features such as FSCM Credit Management, GTS
Foreign Trade, SFIN Revenue Accounting, new
analytical capabilities.

Increased efficiency in the


Procure-to-Pay processes,
new Analytical Apps &
Spend KPIs, Ariba Network
Integration for PO Order and
IV.

2015 SAP SE or an SAP affiliate company. All rights reserved.

This is the current state of planning and may be changed by SAP

SAP S/4HANA
ASUG Key Takeaways

@BeSchulze

Summary The Value Levers Are Huge


Master The Digital Economy At The Pace You Choose
S/4HANA Enablement

HANA

Data
Models

Productivity
Predictability
Exception driven
Signal to action

Reduced footprint x10


Increased throughput x 7
Analytics speed > x1000

User Experience and Decisions

Business Processes

S/4
HAN
A

Business Models

Frequency
Granularity
De-layer processes
Raise process intelligence
Effectiveness

Efficient access to information


Proactive issue notification
Pre-evaluation of solution
alternatives
Simulation before application of
solution

Connectivity
Organizational agility
Granular data processing capability
Subscription economy
Organizational Agility

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Business Outcome

Significantly higher process


frequency
Real-time inventory updates
Lot size 1 handling capability
Participate in Industry 4.0

Leverage Internet of Things


Products become services
No ownership of things

Business Value

Complexity reduction
TCO reduction
Service quality increase
Margin protection
Service quality
increase
User productivity
Higher asset
utilization
Inventory cost
reduction
Service quality
increase
Revenue growth
Business Agility
Stock price appreciation
Market share growth
Customer
success/loyalty

Dont make HANA solely about speed


Speed is really a symptom, not the entire result
Faster processes should lead to org changes
For example: Shorter MRP run times or shorter financial period
closes look to how this impacts the business process
Faster MRP can you run MRP on-demand? What advantage does that
give the company?
Shorter period close Does this allow financial staff to add value in other
ways? More time for analysis?

Dont focus only on speed. Greater value comes from


redesigned business processes.

Key Takeaways

Key Takeaways
HANA is not just about speed. Its about process change.
All migrations to S/4HANA need OCM support and attention
Analyze S/4HANA functionality for process improvements
Update training materials to include Fiori UX changes
Change in roles of technical support staff
DBAs especially

Cloud changes
Hybrid environment can implement quicker in some cases
Also moves some support from internal to cloud vendor

Moves capital investment to manageable expense

ASUGs Take on S/4HANA


Adds value to your company
Finance activities are quicker, more streamlined
SAP VE group measures 25% faster close, 61%
less expense

Recent November release of 1511


Was called Simple Logistics; now renamed
S/4 HANA Enterprise Management

Expands the value-add into rest of ECC/ERP


footprint

Simplifies the IT workload


Less DBA work for BASIS folks
Smaller footprint of database

Simplifies the Processes for just about


everyone else

The Move to SAP S/4HANA


The transition scenarios

System
Conversion

On-Premise

ERP System

S/4HANA

ERP System
- Region A -

Landscape
Transformation

ERP System
- Region B ERP System
- Region C -

New
Implementation

On-Premise

ERP System

Example: Complete conversion of an


existing SAP Business Suite system to
SAP S/4HANA

Example: Consolidation of current regional


SAP Business Suite landscape into one
global SAP S/4HANA system

Cloud

On-Premise

Non-SAP
System

Example: New or existing SAP customer


implementing a new SAP S/4HANA system

Cloud

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19

SAP
S/4HANA
On-Premise

SAP S/4HANA
SYSTEM CONVERSION

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20

SAP S/4HANA system conversion


Procedure
Scenario description
Customers who want to change their current
system into a SAP S/4HANA system.
Database, SAP NetWeaver and
application transition in one step.

Software Update
Manager (SUM)
with Database
Migration Option
(DMO)

SAP GUI

SAP ERP Core


AnyDB / SAP HANA

SAP S/4HANA
On-premise Edition

(SAP GUI) / SAP Fiori


SAP S/4HANA Core
SAP HANA

Benefits
+

Migration without reimplementation

No disruption for existing business


processes

Re-evaluation of customization and existing


process flows

2015 SAP SE or an SAP affiliate company. All rights reserved.

What

How

Installation and
migration

Rapid Database Migration of SAP Business


Suite to SAP S/4HANA (all one step
migration, including SAP S/4HANA Finance
and SAP S/4HANA Logistics conversion)
using SUM with DMO

21

System Conversion
Downtime Minimized Approach
On-Line User Activity Continues

Existing
Landscape

1
To-Be
S/4HANA
Landscape

Step 3: System Ramp


Down and User Activity
Paused

Existing
SAP ERP

Step 1: Copy Production


System to New
Environment and create
Database Triggers

Copy of
SAP ERP

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Existing
SAP ERP

Step 4: Deltas
Accumulated Since
System Copy Transferred

Step 2: Copied System


Upgraded and Migrated
to S/4HANA

User Activity Continues

Step 5: System Brought


On-Line
SAP

S/4HANA

22

SAP
S/4HANA
On-Premise

SAP
S/4HANA
Cloud

SAP S/4HANA
LANDSCAPE TRANSFORMATION

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23

Transition to SAP S/4HANA


Landscape transformation
Scenario description
Customers who want to consolidate their
landscape or to selectively transform data
into a SAP S/4HANA system.

SAP S/4HANA
On-premise Edition

Consolidation or selective
data transformation
based on SAP LT
capabilities

SAP S/4HANA
Cloud Edition

(SAP GUI) / SAP Fiori


SAP S/4HANA Core

Benefits
+

Value-based migration: selective data


transformation allows a phased approach
focusing the first SAP S/4HANA migration
phase on parts of the business with highest
ROI and lowest TCI

Agility: stay on current business processes


but move gradually to SAP S/4HANA
innovations (Move to SAP S/4HANA at your
own pace!)

TCO reduction: system and landscape


consolidation with harmonized/ simplified
processes and unified master data lead to
lower cost of operations

2015 SAP SE or an SAP affiliate company. All rights reserved.

SAP HANA

What
1

Consolidation

Selective Data Transformation

How
SAP Landscape Transformation
Consolidate clients from different source systems into one new or
existing SAP S/4HANA system (build-up multiple client system)

SAP Landscape Transformation


Migration of business units/single entities such as company code
Migration of selected SAP applications (example: central Finance)

24

SAP S/4HANA landscape transformation scenarios On premise


SAP LT enabled solutions

Pre-configured

Consolidation

Migration of Business Units


(Company Code)

Migration of selected applications


(centralFinance)

Tailored offerings for selective data migration requirements


(for example based on time slice, plant or other objects)
can be requested as project solution or service.

2015 SAP SE or an SAP affiliate company. All rights reserved.

25

SAP
S/4HANA
On-Premise

SAP
S/4HANA
Cloud

SAP S/4HANA
NEW IMPLEMENTATION

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26

Your way to SAP S/4HANA


Scenario: New Implementation
Scenario description
New installation of SAP S/4HANA e.g. for
customers migrating a legacy system.

SAP S/4HANA
On-Premise Edition

Deployment Options:

SAP S/4HANA Cloud Edition

SAP S/4HANA On-Premise Edition

SAP S/4HANA
Cloud Edition

SAP Fiori
Legacy
Any customers legacy
system

SAP S/4HANA Core


SAP HANA

Benefits for the customer


+

Reengineering and process simplification


based on ready-to-run business processes
and reference solution delivered with the
product

New implementation of industry-leading


Business Suite

Pre-defined migration objects & Best


Practices available in a guided process

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What

How

Install S/4HANA

SWPM (Software Provisioning Manager)

Initial data load from


source system

Depending on the complexity and deployment option


Topic of this session

27

SAP S/4HANA New Implementation

(a)

SAP Business Suite


(Source System)

Virtual private network


(VPN)

SLT

SLT

SLT

Data migration functionality (Cloud)

(b)

(c)

Customer Master
(S/4HANA)

Customer Master
(classic)
(a)
(b)
(c)

SAP Landscape Transformation


(SLT) Tool required on customers
OP system
Customer needs to establish VPN
connection to OP System
For new customers (legacy
migration) a template-based
approach is used (XLS)

Transfer into new data


structure
Data
Extraction

S/4HANA Cloud
(Target System)

Data
Mapping

API/BAPI
Call

S/4HANA Cloud System

S/4HANA Cloud Data Migration

SAP Cloud Operations: Provision of cloud instance


Customer: Implement configuration in target
Customer: Implement integration to SAP Business Suite
System or use template-based approach
Service Center: Re-Implement customer enhancements

Consulting Service:

2015 SAP SE or an SAP affiliate company. All rights reserved.

Maintain data mapping (Business Objects to be transferred) in


SLT
Transfer of master data; Transfer of transactional data

Customer: Data Validation


28

Thank You

Frank Densborn (frank.Densborn@sap.com)


2015 SAP SE or an SAP affiliate company. All rights reserved.

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reserved.
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SAP S/4HANA Journey from November On

More S/4HANA Information


Since S/4HANA cannot be described in just one blog post,
ASUG and SAP will be publishing much more on S/4HANA and
Enterprise Management. For right now, here are some places
to go:
ASUG Briefing | What Is S/4HANA Enterprise Management?
ASUG CEO Geoff Scott |
The Choice Is Yours: Say Hello to SAPs New ERP
ASUG Kevin Reilly |
Whatever Happened to SAP Simple Logistics?
Join ASUGs S/4HANA Special Interest Group
Members can join our S/4HANA Special Interest Group and
get all the latest information.

ASUG Webcasts
ASUG & SAP
S/4HANA
webcast
series begins
in Jan.
Topics:
Deploymen
t
Functionalit
y

Look for the


registration
link coming

Questions and Answers

Kevin Reilly
Team Reilly, LLC
Kevin@TeamReilly.n
et