your journey to sap s/4hana cloud and on-premise events...sap s/4hana: complete, consistent choice...

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Paul Swain,SAP AustraliaAugust, 2018

Your Journey toSAP S/4HANA Cloud and On-Premise

4INTERNAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The HOW? It Is Easy to Organize Your Move to SAP S/4HANA


Business Value Advisor

Transformation Navigator

Readiness Check

Custom Code LifecycleManagement

Make the case(for IT and

the Business)

1

SAP S/4HANA Adoption Starter

Determinetransition path

2

New implementation

System conversion

Landscape transformation

Central Finance

Choosedestination

3

Cloud

Cloud, single-tenant

HANA Enterprise Cloud

On premise

DeliverYour Move

4

Advanced Deployment

Value Assurance

Co-Design

Model Company


S/4HANA Mythbusters!

Myth #1 S/4HANA is not ready for my industry / business.

Myth #2 There is no value in S/4 Hana for my business.

Myth #3 S/4HANA must be a big transformation.

Myth #4 I should do Suite on Hana first.

Myth #5 I cannot / should not Move to S/4 sooner.

Myth #6 I should not consider S/4HANA cloud.


"With SAP S/4HANA,ACM is running betterthan ever. Moreefficient operationsand better dataaccess are giving usthe edge we need tocompete in the globalmarketplace. We aresaving money in theprocess."

Erik Looi, SeniorManager and Head ofIT, Alliance ContractManufacturing Sdn.Bhd.

3months

“SAP S/4HANA givesus an integrated ITmanagement platformby optimizingbusiness, support, andmanagementprocesses. We canprocess massiveamounts of dataquickly, adapt torapidly growingorganizationalchanges, and improveprofitability.”

Jingwei Qian,Financial Controller,GenScript Biotech(Nanjing) Co., Ltd

7months

“Real-time informationhas become essentialfor running abusiness in today´smarket- customersexpect it, employeesexpect it. SAPS/4HANA hasbecome our nucleusand helps us driveinnovationautomatically withaccess to data in realtime.”

J.K. Jain, CFO,DCM Shriram Ltd.

9weeks

4months

“With SAP S/4HANA,we can realize thebenefit of real-timeaccess toreal-time data to makereal-time decisions.We can be moreinnovativeand efficient as wetransform our businessand prepare for thefuture.”

Kim Perry, VicePresident of Financeand InformationTechnology, AlacerGold Corporation

“Knowledge andexperience are anintegral part of whatmakes our companyspecial. SAP S/4HANAhelps us pool theseresources to respondquickly to customerneeds and adapt tochange.”

Curd Abstoss, Head ofIT, Lykill hf

15months

11months

“I wanted to offer NEBthe best of what SAPhad to offer, and thatmeant implementingSAP S/4HANA.”

Sharon Kaiser, CIO,New England Biolabs

“Creating value in theconsumer productsindustry is aboutturningdata into actionableinsights andforesights. SAPS/4HANA lets usmanufacture andstock based on analgorithm-led principleratherthan by intuition.”ViswanathPadmagirison,Head of BusinessTransformation &Technology, FutureConsumer Limited

9months

SAP S/4HANA Over 2000 customers live globally.Some examples:


Your Strategy?

BusinessStrategy

Disruptive

Foundational

Solution LandscapeSimple

Complex

Adapt for Tomorrow Comprehensive Transformation

Under-the-radar Upgrade Simplify

1


Your Strategy?

BusinessStrategy

Disruptive

Foundational

Solution LandscapeSimple

Complex


Under-the-radar Upgrade Simplify

WHY? WHY?

WHY?HOW?

1

9© 2018 SAP SE or an SAP affiliate company. All rights reserved.

So what does this mean? Pain Threshold

Under-the-Radar Build for Tomorrow Simplify ComprehensiveTransformation

Why

Stay Current with SAP Innovations

Faster, more capable IT Delivery

Operational Efficiency and Scale

Reduce or Eliminate re-work after upgrade

Deliver Industry Imperatives Deliver Industry Imperatives

Lower TCO (SAP + non-SAP)

What SAP ECC+ only Landscape Transformation

How Technical upgrade then evolve Upgrade + implementations Multi-stage, more complex roadmap

Cost Marginally more than “cycle” Commensurate to Imperatives Self-funding Commensurate to transformation

Time 6 months 12 months 36 months

Sponsorship CIO Impacted LoB Leaders CFO CEO

Risk Intolerable Reference-proven Mitigated in roadmap Shared by leaders


Choose the Destination that is Right for You

New or existing SAP customerimplementing a new SAP S/4HANAsystem with an initial data load

Complete conversion of an existing SAPBusiness Suite system to SAPS/4HANA

Consolidation of current regional SAPBusiness Suite landscape into one globalSAP S/4HANA

2

Non-SAPSystem

SAP S/4HANA

SAP S/4HANACloud

Region A

Region B

Region C

SAP S/4HANA

SAP S/4HANACloud

SAP ECC 6.xAny Enh. Pack SAP S/4HANA

LandscapeTransformation

SystemConversion

NewImplementation


SAP S/4HANA: Complete, Consistent Choice

SAP S/4HANASAP S/4HANA simplified data model and modern userexperience are consistent for both cloud and on premise.Designed for in-memory, SAP S/4HANA brings new businesscapability while simplifying the IT landscape.

Considerations for selectingthe right SAP S/4HANA solution:

• IT Strategy• Innovation cycles• Adoption/upgrade efforts• TCO• Commercial models• Business functionality• Regulatory, industry, and regional requirements• Individualization options

One Code Line

3

Cloud On-Premise


Choose the destination that’s right for you 3

• Business configuration of standardized coreERP and select LOB processes

• In-depth support for professional servicesand component manufacturing with moreindustries on roadmap

• Extensibility with PaaS• Public cloud infrastructure• Quarterly release cycle• Lowest TCO• Fastest time to value• Subscription licensing

• Expert configuration of flexible core ERPand extended LOB and industry processes

• All industries supported• Extensibility with PaaS• SAP-managed services on private cloud

infrastructure (HEC, AWS, Microsoft Azure,Google Cloud Platform)

• 2 upgrades a year, one mandatory within 12month window of release

• Low deployment/maintenance/upgradeefforts vs on-premise ERP

• Subscription licensing

• On-premise functional scope• All industries supported• Customize, modify, and extend• Customer infrastructure or IaaS• Annual release cycle, speed of adoption

depending on configuration and custommodifications

• Customer controlled deployment andimplementation efforts

• Perpetual licensing

SAP S/4HANA Cloud SAP S/4HANASAP S/4HANA Cloud,single-tenant edition

*according to Gartner Cloud (SaaS) Definition

Cloud ERP*


SAP S/4HANA implementations: growing number of conversionsReflecting customer readiness to move to SAP S/4HANA

Percentageof conversions

50%

Over 150 liveconversion customers

Current S/4HANAimplementations

Earlier S/4HANAimplementations

Complete conversion of an existingSAP Business Suite system to SAPS/4HANA: the database is migratedto SAP HANA database (if notalready done) and transfers datafrom old data structure into newS/4HANA data structure (e.g. migratedata into the new MATDOC table) inone-step

Brownfield conversion withprocess re-engineering:• 19 SAP systems• 484 live companies• 23 countries• €70bn revenue• 75m accounting

documents• 950m accounting line

items• 83m controlling objects• 5 months 1st Go Live

Brownfield conversionwith minimal disruption:• Company undergoing

transformation of itsgold mining process(pressure oxidation)

• $188m revenue• 500 employees• 4 month

implementation


Paths from ERP to SAP S/4HANAgradual approach for under the radar “technical conversion”

SAP ERPAny DB

EFFO

RT

IMPACT (Org change and benefits)

S/4HANA

S/4HANA

S/4HANA

Innovations Rolled out by business role introducingFIORI and new capabilities like ML

S/4HANATechnical

Conversion

S/4HANA with GUI, introduce onlyrequired changes as the foundation forinnovation (option for under the radar

accounts)SAP ERP

SAP HANA

SOH – updates DB and introduces someincremental benefits


Key Questions influencing the Choice of the Transition Scenario

• Faster move to S/4HANA• Preserve historic data• Investment protection• Limit change management• Prepare for business innovations• No initial load of data

• Process re-design could be harder• Need to meet prerequisites• Additional house-keeping activities

+ -System Conversion


New Implementation System Conversion

Does your system fulfill allconversion prerequisites?

No Yes

No

NoDo you need a renewal of yourcomplete ERP solution?

Yes

Yes

Innovationblocker

Keyasset

Do you want to keep yoursolution enhancements or your

transaction data history?

How do you perceive yourcurrent system?

Key Questions influencing the Choice of the Transition Scenario

17INTERNAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 17

The balanced approach …

Reuse Redesign

SystemConversion

NewImplementation

Phased Go-Live by BU

BU1 S/4H BU2 S/4HBU1

Upfront System Consolidation

S/4HECC1

ECC2ECC1+2

Selectively preserve historical data

S/4HMaster Data

Selective HistoryECC

Upfront Data Remediation/Harmonization

ECC ECC’ S/4HDeletion

Harmonization

Landscape Transformation


Explore YOUR path to SAP S/4HANA

Brownfieldconversion +minimal disruption

Brownfieldconversion +process re-engineering

Greenfieldimplementation +process re-engineering

1

2

3

Representative customers


Explore YOUR path to SAP S/4HANA

Brownfieldconversion +minimal disruption

Brownfieldconversion +process re-engineering

Greenfieldimplementation +process re-engineering

1

2

3

We announced our intent to move to SAP S/4HANA andthen we worked with the SAP team with the Near ZeroTime methodology to actually make the transformationhappen. It has been seamless, without losing data,without losing any significant time and, most importantly,without it being disruptive to day-to-day work. In fact, ithas enhanced the way people can work, enhanced thespeed of information."

Manish Choksi, CIO, Asian Paints


Potential Approach:


Under-the-Radar Upgrade Simplify

Manage as IT led initiative and “Technical Conversion” minimizing impact tobusiness- Skip SoH. Focus on low cost/factory model conversions- Introduce minimum change requirements (Business Partner, Material

Ledger, Universal Journal etc.) – see Readiness Check- Limit FIORI rollout to high value user groups. Continue with SAP GUI to

minimize organizational change for majority of user groups.- Innovations and associated FIORI, can be rolled out later, with the support

of the business- Foundation for future innovation

CIO and CFO EngagedLandscape simplification can be achieved with various solutions:• S/4HC for target industries, administrative ERP or subsidiaries (2-tier) -

S/4HC Single Tenant Edition or HEC for others,• Central Finance to merge financial data from disparate ERP systems into

single source of truth• Move applications and Industries to the core to simplify architecture (PPDS,

EWM, APO, Industry Solution Add-ons etc.)• ERP System Landscape Consolidation to S/4 with SLO tools• Reduce reliance on BW for operational reporting

Engage the business to determine their short and long-term needs. Business casebuilt on delivered and anticipated benefits to the business with innovation rolloutroadmap: e.g.• New business models (Subscription billing, GRC, MDM etc.)• Optimized business processes (incl Machine Learning Scenarios and Co-Pilot

to drive efficiencies )• Previously overlooked solutions due to integration complexity (PPDS, AATP,

EWM)• Central Finance for M&A• Inherent solution benefits (UX, embedded analytics, performance, universal

journal etc.)Conversion or greenfield implementation for older ECC systems

Typically requires CEO sponsorship and solid business case for board approval.

Maximize use of SAP services, tools to uncover the business value

See bullets from “Adapt for tomorrow” and “Simplify”

Bus

ines

sSt

rate

gy

Solution Landscape


The HOW? It Is Easy to Organize Your Move to SAP S/4HANA




Readiness Check



the Business)

1



2

New implementation

System conversion


Central Finance

Choosedestination

3

Cloud



On premise

DeliverYour Move

4

Advanced Deployment

Value Assurance

Co-Design

Model Company


Make the caseThree free tools, personalized guidance for IT and the line-of-business

SAP TransformationNavigator

See the S/4HANA roadmapfor each component inyour current landscape.

Based on current SAP product usageor capabilities your organization wants.

SAP ReadinessCheck

Learn the technical requirementsand actions for a systemconversion to S/4HANA.

Based on configuration and usage data forcustomers already on SAP ECC 6.x.

S/4HANA Business ScenarioRecommendations

Identify the business processesyou can improve and discover

new business capabilities.

Customers new to SAP can use BusinessValue Advisor: http://impact.s4value.com

1


SAP Transformation Navigator generates the set of customer guides

SAP Transformation Navigator(self service tool)

Customer Guides

Generates

Technical GuideWhat?

Business GuideWhy?

Transformation GuideHow?

link

Timeslider: Roadmaps at your fingertips


ü Customers can initiate their SAP ERP systemanalysis themselves, getting an overview onthe most important aspects and potentialrequirements of an SAP S/4HANA systemconversion (e.g. Simplifications, CustomCode, Business Functions, Add-ons andTransactions).

ü A new cloud solution based on SAP SolutionManager is available for all customersincluded in maintenance as of May 29th 2017.

ü Minimum source release is SAP ERP 6.0EHP 0, any database.

ü Supports all SAP S/4HANA releases astarget.

ü Using the SAP Readiness Check is optionalbut highly recommended.

SAP Readiness Check for SAP S/4HANAAvailable for all customers included in maintenance

link


SAP Readiness Check for SAP S/4HANA

Custom Code & Custom Dev• Custom Code must be analyzed with respect

to SAP S/4HANA compliance, based on theSAP simplification database

• SAP Readiness Check provides BOM ofaffected objects as well as SAP CustomDevelopment Projects (CDP‘s)

• An in-depth custom code managementactivities to follow during project execution

Simplification items• Simplification Items represent application or

architecture changes in comparison to ERP• About 470 Simplification Items exist for

S/4HANA 1610• They are grouped by business priority (e.g.

Core Finance) and industry, respectively

AddOn’s & Business Functions• SAP AddOn’s and Business Functions as well

as 3rd party AddOn’s have to be checked fortheir compatibility with SAP S/4HANA

• SAP software is listed and rated• 3rd party software is listed only

S/4HANA Sizing• To prepare for SAP S/4HANA, a system

sizing is the baseline for further discussionsregarding the future target size

• SAP Readiness Check summarizes thetechnical sizing result so that customers canfurther engage internally, with SAP or withpartners to discuss the future target systemsize

Recommended Fiori Apps• Fiori apps recommended based on the

transaction usage history in the evaluatedsystem

Transactions• SAP GUI transactions replaced or

deprecated in SAP S/4HANA, such asClassic MM-PUR GUI transactions


S/4HANA Myths Busted:

Why busted:

Myth #1 S/4HANA is not ready for my industry / business FALSE! 2000+ Live customers. Cross industries.

Myth #2 There is no value in S/4 Hana for my business FALSE! Over 400 customer Value Discoveriescomplete in North America alone.

Myth #3 S/4HANA must be a big transformation FALSE! “Under the radar” could be as little as 4 mnths

Myth #4 I should do Suite on Hana first FALSE! Why double your time & effort to get to S/4?

Myth #5 I cannot / should not Move to S/4 sooner FALSE? Understand myths versus facts first.

Myth #6 I should not consider S/4HANA cloud FALSE. Consider where you really need to be in 5years if not before.


S/4HANA Regional Implementation Group:


Lessons Learned?

SAP S/4HANA RIG Knowledge Assets onSAP.COM reaching 700k page views

https://blogs.sap.com/tag/s4hana-rig


Where are you on the journey?



Readiness Check



the Business)

1



2

New implementation

System conversion


Central Finance

Choosedestination

3

Cloud



On premise

DeliverYour Move

4

Advanced Deployment

Value Assurance

Co-Design

Model Company

Contact information:

Paul SwainHead of ANZ Solution Centre of Excellence and S/4HANA [email protected]+61 412 199 702

Thank you.

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