short presentation title - sap s/4hana value...

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 1Public

Transform Public Sector with SAP S/4HANA®

S/4HANA


AGENDA

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SAP S/4HANA: Public Sector Overview 3

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10

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Procurement Deep Dive

Portfolio and Project Management Deep Dive

Assets and Infrastructure Deep Dive

Public Sector Finance Deep Dive

Portfolio of Solutions for Public Sector from SAP

15SAP S/4HANA: Value Proposition for Public Sector

16Customers Are Achieving Value from SAP S/4HANA

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In today’s digital society, there is immense pressure on government agencies to deliver on their fundamental mandate: to provide services, to protect the society, and to enable economic prosperity. Governments on all levels are facing new pressures and challenges. Digitally experienced citizens demand the service level and customer experience they know from shopping, banking, and social media. Disasters happen more often, and with a bigger impact. Globalization puts businesses and governments under pressure.

This new digital reality has a big impact on governments at all levels. In a totally connected world, government actions and their impact are increasingly influenced by all sorts of events in other parts of the world, which increases complexity and impedes decision making. Furthermore, digitalization drives a great deal of transparency and puts decision makers under pressure, as their actions and the respective consequences are publicly evaluated and discussed in real time. On the other hand, digitalization offers many opportunities for government agencies. Policies and decisions have much better outcomes when they are based on citizens’ insight and ideas. Analysis of sentiments expressed in social networks and e-participation tools help governments understand the electorate. Agencies also have the opportunity to use data to drive policy decisions, set goals, measure performance, and increase government transparency – thus acting on facts and insights rather than on beliefs and opinions. It is important to recognize that, at the heart of all the threats and opportunities, digitalization will allow government agencies to serve their citizens better than ever.

To succeed, governments will need to put in place a coherent digital vision with a clearly articulated road map for their digital transformation. In particular, they will need to address new government models such as the individualization of government services – “government made for me” – or the possibility to scale operations up (and down) swiftly, smoothly, and productively across networks of resources. At the same time, governments are transitioning from being a provider of services to an enabler. To execute on this, government agencies not only will need to reengineer their business processes, but they will also have to evaluate if they have the right technology platform that can deliver on their vision.

This platform requires an IT architecture that provides both stability and long-term reliability for core government processes, and, at the same time, allows for flexibility in areas where change is happening on a constant basis. The digital core is the foundation for the core processes that need to run consistently and flexibly. It provides uninterrupted, real-time transactions and analytics; the ability to work with Big Data; and connectivity to line-of-business (LoB) extensions that enable supporting processes such as talent sourcing or emergency response.

SAP S/4HANA® was developed specifically to represent the digital core in this “bimodal IT architecture.” It provides government agencies with a proven framework to adopt industry best practices while attaining operational excellence – across core financial, procurement, and planning processes.

European Schools Better cost control and

compliance using self-service procurement

“The SAP S/4HANA Finance solution empowers our users with more control and drives greater accountability. We have a complete solution that meets all our needs. And SAP HANA Enterprise Cloud means that we didn't need to invest in IT staff to maintain the system.”

– Kari Kivinen, CEO, Schola Europaea, Office of the Secretary-General of the European Schools

Diakonie Michaelshoven Greater efficiency and

transparency and increased liquidity

“To be ready to take on the future, even social institutions like us –these organizations in particular, in fact – need to be structured to run like a business. That’s exactly why we’ve implemented SAP S/4HANA.”

– Uwe Ufer, Commercial Director, Diakonie Michaelshoven e.V.

Transform Your Agency’s Digital Core with SAP S/4HANA®

SAP S/4HANA: PUBLIC SECTOR OVERVIEW

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Public Sector Financials

ProcurementInfrastructure Management

• Provide holistic overview on budget situation, approval requests and alerts

• Tailored exception handling

• Increase user productivity

• Complete requesting process is supported in the SAP Fiori user experience

• Role based and quick access to the procurement information needed to analyzing purchasing spend, suppliers and contracts in real-time.

• Reduce costs by rating benchmarks, competitive bidding, volume discounts, leveling, and enforcement of rules

• Provide visibility with direct access to workforce management

SAP S/4HANA sources of valueThe value from SAP S/4HANA comes through simplification of the user experience, architecture, and process.

Simplified user experience: across all devicesSAP S/4HANA empowers front-line users with an user-centric, consumer-grade experience. SAP is driving simplification and innovation in how users work with a consistent, role-based user experience available on any device.

Simplified architecture: no aggregates – no redundanciesSAP S/4HANA has a simplified data model that provides an advanced digital data architecture, which in turn provides, in real time, a single source of the truth for both transactions and analytics. This enables extensive flexibility to adapt to changing business models, such as simulating the impact of reorganizations in minutes rather than days.

Simplified processes: key industry capabilities of SAP S/4HANA


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*This is a subset of the complete industry portfolio shown later in the “Portfolio of Solutions for Public Sector from SAP ” section.


EXAMPLE: Purchaser order simplificationSAP S/4HANA provides reengineered and simplified business processes that can yield significant benefits. Transform the execution from multistep processes with latency to real-time processes with actionable insights to accelerate the procure-to-pay process.

Traditional ERP

• Multiple screens for document searching

• No preprovisioning of existing documents

• No prefiltering of search results

SAP S/4HANA

• Personalized lists of your specific requisitions

• Preprovisioning of existing purchase orders to facilitate manual purchase order creation

• Restricted list of values to avoid subsequent error in purchase order

Requestor

Personalized requester list

Savepurchase order

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Purchase order provisioning on one screen

Startpurchase order creation

Supplier identified?

YES

NO

Search for reference documents used in

past purchases

Provide supplier

Enter and reuse relevant

purchasing data

Enter overview information: validity

dates, type of purchase order,

supplier, and so on

Provide item data step by

step

Save purchase order and work

on errors


Typical challenges Traditional ERP SAP S/4HANA® enhancements Benefits*

Manual processes extend transaction cycle

times

Searching for existing purchase orders is time

consuming with little prefilled content and

provisioning of existing documents

Consumer-like interface to manage purchase

orders, existing purchase orders, and purchase

info records, which are preprovisioned to

facilitate manual purchase order creation

• Improved transactional procurement FTE productivity and reduced cycle times

• Improved user compliance (spec and vendor)

• Increased tactical sourcing savings (on noncontracted spend)

• Increased collaborative sourcing savings (services spend)

• Continuous improvement in spend under e-procurement

Inconsistent information flow across supply

chain creates fulfillment inefficiencies

User must manually check existing sources of supply, info record, and agreements separately by constantly changing search parameters

Consumer-like interface enables users

to manage purchase requisitions and

automatically proposes available sources of

supply for a specific item with dynamic search

and filtering capabilities

Contract compliance is not applied

consistently

A separate add-on needs to be implemented

on top of ERP to exchange messages with the

Ariba® Network

Business network integration native to

SAP S/4HANA® for purchase order

change, order confirmation, and

advanced shipping notification

Time-consuming and complex process for buyers and suppliers to collaborate

Searching for existing purchase orders is time

consuming with little prefilled content and

provisioning of existing documents

Consumer-like interface to manage purchase

orders, existing purchase orders, and purchase

information records, which are preprovisioned

to facilitate manual purchase order creation

*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA and LoB/cloud capabilities. As each public sector agency is at a different level of maturity, we recommend working with you to determine the v alue proposition for your enterprise.

PROCUREMENT DEEP DIVE

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EXAMPLE: Portfolio and project management process simplificationSAP® Portfolio and Project Management is all about making decisions about investment mix, matching investments to objectives and aligning them to strategy, allocating the right resources to the right projects and balancing risk against performance.

Traditional ERP

• Multiple entry points with traditional system

• Project-related information is distributed across various ERP applications

• Details are lost due to aggregation and replication

SAP S/4HANA and SAP Portfolio and Project Management

• Live, predictive, real-time insights for better project and program decisions

• Intuitive user experience providing a single, consolidated source of truth for all project-related information

• Real-time access to resource availability and skill sets for better resource utilization

Project/program manager starts with multiple entry points to optimize the project portfolio

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Project/program manager

Direct access – real-time, cross-project analysis

Master project cockpit

Integrated components (finance, HR, materials management, and so on)

Traditional systems (finance, HR, materials management, and so on)

Batch

Establish program budget, resources, and milestones

Prioritize project portfolio

Capacity planning and project staffing

Batch

Cross-project and -portfolio optimization



Inability to prioritize project portfolio

decisions in alignment with government

strategy

Visibility into complete project portfolio, and

investment structure. Planning, progress, roll-

up, analysis, and simulation done in batch runs.

Live tracking of financial project KPIs by

leveraging SAP S/4HANA®, in-memory

technology. and role-specific interface

• Better, faster, and more accurate decision making

• Increased portfolio and project management resource productivity

• Reduced project expenses

• Reduced fines resulting from noncompliance

• Reduced budget overruns

Delayed project milestones; inability to

deviate until it’s too late

Milestone-driven projects along with scheduling give project management operations transparent and accurate view of true project status

Simplified access for project members to

confirm milestones and network activities

Lack of transparency into project resource

demands and allocation leads to project

delays as well as low resource utilization.

Slow access to project and task details

reduces productivity.

Capacity planning, detailed project role

planning, and project staffing in a single

application

Real-time access to resource availability, skill sets, and organizational assignment during project staffing process

Inability to plan project costs and budgets efficiently and track actual versus planned costs lead to budget overruns

Work breakdown structure (WBS) serves as

basis for hierarchical project accounting; actual

project cost and cash-flow visibility by using

multiple applications

Change status of a WBS element easily. Obtain

actual project cost using one integrated

application. Single entry point for project

financial controller.


PORTFOLIO AND PROJECT MANAGEMENT DEEP DIVE

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EXAMPLE: Predictive maintenance and service process simplificationSAP Predictive Maintenance and Service provides real-time information of assets based on critical values and trends, thus allowing the most-efficient asset maintenance strategies to manage cost, risk, and performance better.

Traditional ERP

• Time and/or condition-based inspection and maintenance

• Real-time risk of failure and performance are not known

• No optimization of cost, risk, and performance

SAP S/4HANA and SAP Predictive Maintenance and Service

• Trigger maintenance orders just in time, avoiding unnecessary inspections and decreasing cost and risk of unplanned failure

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Maintenance scheduled based on real-time asset health status and failure prediction

Asset health monitor

Time-based inspection planning

Inspection Inspection triggers maintenance

Maintenance

Maintenance

IncreaseReturn on assets

IncreaseFirst-time fix rate

ReduceUnplanned asset downtime or outages



Lack of real-time view into ongoing

maintenance activities and asset

performance indicators hinders timely

decision making

Multitiered landscape consisting additional of

SAP® ERP application component extensions

and business intelligence solutions makes it

challenging to obtain real-time view of

maintenance activities

Real-time view into ongoing maintenance

activities with the ability to reschedule multiple

times a day in order to better plan and

schedule maintenance activities to achieve

higher efficiency

• Increased return on assets

• Decreased unplanned asset downtime or outages

• Improvements in operational efficiency

• Reduced service and maintenance cost

Limited ability to analyze data by machines

and sensors leads to high asset downtime

and increased time to determine the root

cause of failures

Analysis based on past performance and lagging indicators increases time to identify potential activities that can improve asset performance. Sophisticated analytics are disconnected from real-time operational data.

Improved performance of many transactions,

such as scheduling of maintenance plans

Limited ability to share and learn vital best

practices on installation, usage, and

performance of equipment between

different stakeholders hampers asset

performance

Information sharing is only possible through

direct interfaces between individual systems,

which makes it difficult to achieve effective

collaboration among different stakeholders

SAPS/4HANA® integratedwith SAP AssetIntelligence Network

Limited ability to effectively analyze environment, health, and safety (EH&S)data to reduce workplace risk. Inability to develop proactive safety measures leads to EH&S issues.

Analysis is based on past performance, which

limits the ability to proactively drive down

EH&S risk. Data is processed in batches, which

increases the time required to analyze EH&S-

related information.

Embedded analytics based on live data that

help EH&S practitioners act in themoment


ASSETS AND INFRASTRUCTURE DEEP DIVE

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EXAMPLE: User experience simplificationSAP S/4HANA enables an anywhere, any-device, mobile-first, role-based user experience that simplifies and enhances employee engagement and productivity, transforming the way work gets done.

Traditional ERP

• Multiple screens and transactions to monitor budget data, commitment actuals, and budget consumption, and approve commitment data

SAP S/4HANA

• Intuitive user experience facilitates decision making with live insights

• Simplified processes help drive efficiency, compliance, and performance

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Single point of entry for approval with relevant data for decision making Approval

Budget officerreceives approval request

Reviews high-level aggregated view

Drills down to commitment item level

Looks through legal support documents

Approval

Budget launchpad



Time-consuming process to control budget

and approve earmarked funds

Various reports and variants are required to

provide required data at a detailed level

Role-specific access to all relevant applications

and tasks on one launchpad

• Better, faster, and more accurate decision making

• Increased budget-responsible productivity thanks to accelerated insight

• Reduced budget overruns

Inability to easily analyze budget availability

for budget object under the responsibility

User needs to know reports, variants, and

budget objects required to provide required

insight on budget availability

Personalized overview of availability and

spending status for all budget objects under

the user’s responsibility; specific areas of the

budget can be set to focus on important

objects

Difficult to manage budget objects with

critical spending and to investigate the

individual reasons to prevent overspending

Various reports and variants are required to

provide required data at a detailed level to

enable the budget responsible to take action

An overview of alerts for budget objects where

budget availability is nearing critical threshold

and simple drill-down to the underlying data by

clicking a tile

No 360-degree view of all relevant

information regarding budget master data

Master data information and transactional data

could only be accessed individually and with

different reports and transactions

360-degree view on budget master data

objects, like funds center combining master

data attributes, relations, and transactional

data in one object page


PUBLIC SECTOR FINANCE DEEP DIVE

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In addition to asset and infrastructure management, asset maintenance, and procurement provided by SAP S/4HANA, the digital core also provides native, prebuilt integration to allow agencies to leverage the entire portfolio of SAP solutions to comprehensively address their needs demanded by today’s digital economy. Processes are designed from the outset to flow end to end across the cloud-based solution extensions, listed in the white bands, and are fully integrated to SAP S/4HANA Enterprise Management and are optionally deployed to address business needs. The solution capabilities in the dark blue band,the digital core, are delivered as part of SAP S/4HANA Enterprise Management. The lighter blue band, also in the digital core, are part of SAP S/4HANA Enterprise Management, but added only as needed.

PORTFOLIO OF SOLUTIONS FOR PUBLIC SECTOR FROM SAP

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Digital Core

Products

Suite

Products

Suite

Enterprise Management

• Constituent engagement• Case management• Inbound/outbound contact center• Constituent self-service

Digital constituent experience

• Constituent experience• Inbound/outbound contact center• Benefit decision making• Grantor management

Service delivery

• Receivables management and payment handling

• Credit and collection management

• Planning, budgeting, and forecasting• Monitoring and reporting• Governance, risk, and compliance for

finance

Budget and financial excellence

• SAP® Fraud Management

• Financial planning and analysis• Accounting and financial close• Treasury management

• Receivables management• Invoice management and

accounts payable

• Taxpayer online services• Collection online services• Debt enforcement

Government funding

• Tax payer identification and processing

• Receivables management and payment handling

• Credit and collection management

• Core human resources and payroll• Time and attendance management • Human capital analytics

HUMAN RESOURCES

• Core human resources and payroll

• Talent management• Time and attendance

management

• Human capital analytics

• Operational purchasing

• Collaborative sourcing and contract mgmt.• Invoice and payables management• Supplier management

• Procurement analytics

PROCUREMENT

• Extended procurement for public sector

• Supplier collaboration• Business network• Guided end-user buying

• External workforce management

• Maintenance and repair • Portfolio and lease management• Space and facility management

ASSET AND INFRASTRUCTURE

• SAP Mobile Asset Management• SAP Predictive Maintenance and

Service• SAP Asset Information Network

• Investment and construction• Portfolio and lease management• Infrastructure strategy and

performance

• Budget maintenance

• Budget execution• Budget and financial closing and reporting• Grantee management

• Cost management• Accounting and closing operations


Public sector organizations need to manage the end-to-end lifecycle of their infrastructure. This includes detection of risk issues resulting from asset inspections by the mobile workforce or sensor measurements using Internet-of-Things technology. Depending on the risk assessment, this leads to maintenance orders or the setup of capital infrastructure projects. SAP procurement software supports public sector tendering and sourcing of internal or external resources. Externally, open-government policy requires new transparency for constituents, which can be delivered by SAP Hybris® solutions. Internally, integrated and efficient budgeting, project controlling, invoice matching, and payment processing are needed in order to ensure compliant, sustainable government spending in line with planned milestones. Once infrastructure projects are completed, intelligent maintenance plans are generated in order to maximize asset reliability and minimize risk and cost.

Allow internal

and external sourcing according to

government policies

Analyze

previous bids and resulting engage-

ments

Monitor

project progress and control

budget availability

Provide

restricted and open data to

appropriate audience

Plan

maintenance for future operations

Set up capital project

Manage resources and con-tractors

Share project status with constituents

Monitor budget and project

Manage invoicing and pay-ments

Manage maintenance

Match

invoices and initiate payments

according to contractual agreements

Enterprise Management

Digital core

Public Sector Infrastructure Project Management

Send abnormalities for

risk assessmentInform and request feedback

An end-to-end solution for public sector

PORTFOLIO OF SOLUTIONS FOR PUBLIC SECTOR FROM SAP

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Citizen

engagement

Provide

information according to security classifi-

cation. Manage applications, feedback, com-

plaints, and so on

Develop talent

based on needed skills

Detect

infrastructure issues

Manage ongoing

inspections in real time or according to maintenance plan

Talent

supply

Sourcing for

material and services

Leverage talent

networks for flexible capacity

Facilitate sourcing

against material and service providers in line with existing

contracts

Assets, Internet of Things, and mobile workforce

Source and contract

Third-party

labor


Strategy enablement Business benefits*

• Support new business models• Enable agility for policy and legislation• Reorganize on the fly• Collaborate with other agencies

and external stakeholders• Reduce complexity• Manage risk and ensure compliance

• 30% faster analytics• 5%–10% reduction in business and operations analysis

and reporting costs • 40%–50% reduction in days to close annual books• 20%–40% reduction in G/L and financial closing costs• 20% savings in procurement function cost

Empowered employees IT benefits and TCO

• Establish finance as a partner for strategic decisions

• Empower informed, real-time decision making

• Increase user productivity and user adoption through tailored UIs enabled by the SAP Fiori® user experience (UX)

• Reduce data footprint up to 70%*• Merge online analytical and transaction processing

(OLAP and OLTP)• Eliminate many desktop clients• Lower testing costs• Simplify landscapes• Take advantage of native integration

SAP S/4HANA provides government agencies a proven framework to adopt industry best practices while attaining operational excellence.

Strategy enablement

Business benefits

Empowered employees

IT benefits and TCO

*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA + LoB/cloud capabilities. As each enterprise is at a different level of maturity, we recommend working with you to determine the value propo sition for your enterprise.

SAP S/4HANA: VALUE PROPOSITION FOR PUBLIC SECTOR

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European SchoolsEuropean Schools replaced an outdated and siloed legacy system with a modern, cross-compatible solution to remake the institutional operations of this complex multinational and multilingual organization into a leading integrated operational environment. The cloud-based system running of the SAP HANA® platform reduced logistics and administrative efforts, and improved operational consolidation and transparency. All schools across the organization are accurately aligned with standardized, secure, and integrated financial processes in a comprehensive reporting environment.

“The SAP S/HANA Finance solution empowers our users with more control and drives greater accountability. We have a complete solution that meets all our needs. And SAP HANA Enterprise Cloud means that we did not need to invest in IT staff to maintain the system.”

Kari Kivinen, CEO, Schola Europaea, Office of the Secretary-General of the European Schools

Diakonie Michaelshoven Diakonie Michaelshoven implemented SAP S/4HANA to standardize and streamline structures and processes across the organization and recast departments as internal service providers. Diakonie Michaelshoven was able to make administration faster, simpler, and more cost effective.

“To be ready to take on the future, even social institutions like us – these organizations in particular, in fact – need to be structured to run like a business. That’s exactly why we’ve implemented SAP S/4HANA.”

Uwe Ufer, Commercial Director, Diakonie Michaelshoven e.V.

CompanySchola Europaea, Office of the Secretary-General of theEuropean Schools

IndustryPublic sector – education

SAP solutionsNursery, primary, and secondary education

Customer Web sitewww.eursc.eu

Click here for the source reference

CompanyDiakonie Michaelshoven e.V.

IndustryPublic sector

SAP solutionsSocial services

Customer Web sitewww.diakonie-michaelshoven.de

Click here for the source reference

CUSTOMERS ARE ACHIEVING VALUE FROM SAP S/4HANA

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https://www.eursc.eu/en

https://www.sap.com/docs/download/2015/04/5ce783eb-487c-0010-82c7-eda71af511fa.pdf

http://www.diakonie-michaelshoven.de/

http://www.sap.com/assetdetail/2016/06/80a66bfd-757c-0010-82c7-eda71af511fa.html


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