frank graeve ho erp/bi foundation & brm finance at airbus ... · airbus ds – expectations to...

CUSTOMER

Frank Graeve

HO ERP/BI foundation & BRM Finance at Airbus Defence and Space

Madrid, September 2018

Airbus Defence & Space Centralize Financial Capabilities

Version: 01

© 2017 SAP SE or an SAP affiliate company. All rights reserved. Customer PUBLIC

© 2017 SAP SE or an SAP affiliate company. All rights reserved.

AGENDA

► Airbus Defence & Space at a Glance

► Airbus Finance Group Vision, Information Management Strategy & The SimpliFI Project

► The SimpliFI Project to Introduce Central Finance at Airbus

► S/4 HANA Strategic approach: ERP Roadmap Program

© 2017 SAP SE or an SAP affiliate company. All rights reserved. Customer

Disclaimer

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►►►►►

Airbus Defence & Space – At a Glance


Airbus DS - Pioneering The Future Together ►►►►►


Airbus DS - Facts About Us ►►►►►


Airbus DS - Our Locations In Europe ►►►►►

Finland

Helsinki

Jyväskylä

France

Bezons

Blagnac

Cognac

Elancourt

Issy-Les-Moulineaux

Les Mureaux

Lyon

Saint Gilles

Toulouse

Villeneuve-d’Ascq

The Netherlands

Leiden

Germany

Backnang

Berlin

Bremen

Friedrichshafen

Hohn

Jena

Manching

Ottobrunn

Potsdam

Ulm

Italy

Rome

Norway

Lysaker

Poland

Warsaw

Spain

Getafe

Madrid

Puerto de Santa María

Sevilla

UK

Corsham

Filton

Guilford

Newcastle upon Tyne

Newport

Portsmouth

Stevenage


Airbus DS - Our Portfolio ►►►►►

►►►►►

Airbus Group Finance Vision,

Information Management Strategy &

The SimpliFI Project


Airbus Group Finance Vision ►►►►►

With its Finance Vision 2.0 the Airbus Group spotlights three guidelines for the divisions’ Finance and thus sets a clear flight path for the future


Our Information Management Strategy ►►►►►

With IM Strategy 2.0 we will enable the Airbus Defence and Space business for the future by addressing the following business needs:


The SimpliFI Program – Three Phases Towards The Future Finance ►►►►►

1

Central Reporting Platform

2

3

Prerequisite for

Central ERP System

Central

ERP System

with integrated

Planning Application

Central ERP System

► Central Reporting Platform enhanced with

additional processes and functionalities, technical improvements

► Set up operational company code

► Resolve current white spots, mainly in reporting

► Enhance capabilities of Master Data Governance

Central Reporting Platform

► Implement new system with functionalities from SAP S/4HANA Finance

► Covering controlling and reporting only

► Real-time connection to source systems

► Master Data Governance tool

► Mobile reporting / dashboard capabilities

Central ERP System / Planning Suite / UX

► Perform corporate or central transactional FI / CO processes,

Central closing, Planning application

► Run all entities doing international business on a central ERP instance

2016/ 2017 1

2018/ 2019 2

2020 2021 3

Year


Our Mission – S/4 HANA Strategy: SAP ERP Roadmap ►►►►►

Today Future

vision

Commercial Data

Governmentally Restricted Classified Data

SP1

F40

NFP

F41

PR1

DSP

MA3

LM3

SAPHIR P11

PARDIGM

O40

SP1

NFP

NGP

OPAL

NUP

ADP

IE3

PAS

P01

SP2

Shared Data Ownership

IN3

S/4 HANA

Shared Data Ownership


Transition to SAP S/4HANA : Three Migration Options ►►►►►

Landscape

Transformation

ERP System - Region A -

ERP System - Region B -

ERP System - Region C -

Example:

Consolidation of current regional SAP

Business Suite landscape or selective data

transformation into one global SAP

S/4HANA system

On-Premise hosted by Airbus DS

System

Conversion

New

Implementation

S/4HANA


Airbus DS - Pain Points Led To The SimpliFI Project and ERP Roadmap ►►►►►

Processes

Processes

Processes

Processes

PROCESSES No central process for master data governance available

Lack of transparency, e.g. aggregated finance data available only after closing

Limited data quality and agility due to heterogeneous source system set-up

High level of user dissatisfaction with regards to accessibility and user experience

Landscape not consolidated / still fragmented / former divisional footprint

TRANSPARENCY

DATA QUALITY & AGILITY

TECHNOLOGY

LANDSCAPE EVOLUTION

The current system landscape at Airbus Defence & Space comes along with challenges making it difficult to achieve our visions.


Airbus DS – Expectations To The SimpliFI Project and ERP Roadmap ►►►►►

Given the challenges and with the Vision in mind, SAP S/4HANA Central Finance was identified as the solution to be implemented.

Processes

Processes

Processes

Processes

PROCESSES

TRANSPARENCY

DATA QUALITY & AGILITY

TECHNOLOGY

LANDSCAPE EVOLUTION

Real-time transparency of operational data on divisional and

transactional level (cross system / cross entity)

Harmonized data model (master data) and back to standards for

division-wide comparability

Personalized intuitive user experience on multiple devices. Use most

recent technology (S/4 HANA)

Non-disruptive and minimal-invasive approach in source systems and

technical platform for convergence for central financial.

Drastically reduce number of systems

Harmonise processes across business lines.

Division-wide master data governance and processes

HOW SAP S/4HANA HELPS

►►►►►

Phase1:

The SimpliFI Project To Implement Central Finance


ABAP source system SAP LT Replication Server

SAP Business Suite

Application table Logging table

DB Trigger

Read Engine RFC

Connection

SAP S/4 HANA CFIN

Interface with

Business Mapping (MDG-F)

(Key Mapping, Value Mapping)

Posting

RFC

Connection

Migration Workbench

SAP provides pre-delivered objects for the

technical table mapping for the Central Finance

Scenario.

Interface Engine

Write Engine

S/4HANA Central Finance

SAP HANA

S/4 HANA Central Finance - Architectural Approach ►►►►►

Technical view

SAP LT Replication Server

Migration Workbench

► Table Configuration

► Technical Table Mapping

► Data Filtering

► Field Enhancements

► Field Extensions

► Predelivered Central Finance Content


S/4 HANA Central Finance – Architectural Approach ►►►►►

Detailed View for one source system replicating data into Central Finance

► AUFK: Orders

► BKPF: FI document headers

► BSEG: FI document line items

► COBK: CO document headers

► COEP: CO document line items

► CFIN_ACCHD: combined FI/CO document headers

► CFIN_ACCIT: combined FI/CO line items


S/4 HANA Central Finance – Table Structure Consolidation ►►►►►

BKPF

ACDOCA

ACTUALS

ACDOCP

PLAN

Co

nso

lidatio

n o

f

Tab

le S

tructu

re

CFIN Condensed Table Structure

SAP Business Suite Main Accounting Tables

GLPCA

ZZFISLA

FAGLFLEXA

GLFUNCA

COFIS

BKPF

BSEG

COBK

COEP

ANEK

ANEP

GLPCT

ZZFISLT

FAGLFLEXT

GLFUNCT

COSP

COSS

COFIT

BSID

BSAD

BSIK

BSAK

BSIT

BSAT

BSIS

BSAS

Totals

Indices

Documents

Change Log

…

BSIM

Aggregates

Line Item Data

Document Header Data

Plan Data

(BPC: Project Phase 2)


Phase I: From Challenges To The Target Picture ►►►►►

Used Software Components

S/4 HANA 1511 SPS 03 /Feature Pack 02

current release: 1709

System Landscape Transformation Replication Server

DMIS 2011 (SLT)

HANA 1.02 SPS12

Solution Manager 7.1 (soon: 7.2)

MDG-F 8.0

Shared components

Saprouter

Gateway, Webdispatcher

BW on HANA

Enterprise Portal

Firewalls

Enterprise Service Bus TIBCO

Frontend components

Analysis for Office

Fiori Launchpad, Fiori Apps

TR

AN

SA

CT

ION

AL

LA

YE

R

BA

CK

EN

D

► COIN CoA

► Profit Centre

► Cost Centre

► PPS-ID

► …

Central Journal

SP1 ES

SLT SLT SLT

Value & Key Mapping

SAP HANA ERP Business Suite

FI /

CO

S/4 HANA

CENTRAL FINANCE (CFIN)

LM3

GE

SAPHIR

F, G, UK, ES

MDG - F

EXISTING BI

MRT

PLANNING

TOOL CASH BI

FIORI APPS DASHBOARD(S) ANALYSIS

FOR OFFICE

FINANCE PORTAL (UX)

FLATFILE

UPLOAD

REMAINING

NON-CORE SYSTEMS

ETL 2.0

SP1

ES

FR

ON

TE

ND


The SimpliFI Project to introduce Central Finance ►►►►►

Release 2 Timeline (First system went live on 16.12.2016)

Spanish source system connected.

Realtime replication switched on.

We are live with Spain!


The SimpliFI Project to introduce Central Finance ►►►►►

Release 3 + 4 Timeline (Go-live two remaining systems in 07.2017)

All 3 source systems connected.

Realtime replication switched on.

We are live!


Airbus Defence & Space – Project Challenges ►►►►►

Overall Challenges

► Availability of experienced consultants

► Very tough and fixed timeline for go-live of first, second and third source system

Technical Challenges

► High security environment & Airbus security policies

► Access to national source systems limited to view access and guidance of local intermediary IT person via Web session

► Mixture of Agile Approach and Waterfall Approach led to several test cycles and several go-live

► Several go-lives induces a maintenance landscape for already gone live parts of the project plus a development landscape for ongoing

project developments for upcoming test cycles and go-lives

► Need to refresh several parts of the system landscape to clean-up former test cycles and having full data spectrum in the systems

► Highly complex system landscape with a lot of interdependencies


Airbus Defence & Space – Project Challenges ►►►►►

Functional Challenges

Only Classic GL in national source systems

Migration of Business Partner

Document Splitting (non standard) & Open Items handling

Project Replication required but not yet available as SAP standard functionality

Very limited time and capacity for analysis of source data to define Business Blueprint

(e.g. document types, validation rules, tax codes, etc.)

The Go-live

Very successful Go-live on 05.07.2017 with switch on of online replication of UK system P11 and German system LM3

Approx. 30 Mio. data records moved and reposted into the Central Finance target system during the initial load

No major technical issues and excellent quality of FI and CO data

Very acceptable performance of online replication postings into Central Finance (single posting takes ~3 – 5 seconds)

►►►►►

Sneak Preview to the Finance Future


Phase II: Technical Improvements & Functional Enhancements ►►►►►

Scope of functional improvements and enhancements of S/4HANA Service

Work Stream Topic

CFIN

► Improve data quality in CFIN

(Master data cleanup, adjustments and correction postings for SP1, P11, LM3 data plus source system adjustments)

► Reflect MU reorganization in IN3

► Concept for Central Finance as Real Estates home base/ or A400M

MDG-F ► Optimization of MDG-F functionalities ► Additional company codes to be interfaced

Release

management

Release Upgrades in 2017 for ► SAP LT Replication Server 2.0 from SP10 to SP13 ► SAP Portal from NW 7.31 to NW 7.5 SPS08 ► SAP BI to NW7.51 SPS02

Upgrades starting in Q1/2018

► Application Platform from SAP S/4 HANA 1511 to 1709 -> Done

(+ Upgrade to MDG 9.1 + SAP Kernel Upgrade from 7.21 to 7.49 + Fiori 2.0) -> Done

► SAP Gateway from FES 2.0 on Oracle to FES 3.0 on SAP HANA (to support Fiori 2.0) -> Done

► SAP Solution Manager from 7.1 SPS 15 on Oracle to Release 7.2 SPS05 on HANA -> planned 11/2018

UX / Reporting ► UX reporting enhancements ( e.g. Lumira 2.0 ) and leverage new FIORI Apps (FIORI 2.0)

► Airbus Group Tools feeding ( IFRP, FACTS+, ICART ) -> shut down ERP interfaces

► Leverage SAP Analytics Cloud / Digital Boardroom


Phase III: Future Evolutions / Opportunities ►►►►►

Central Finance

Engines

S/4

Central

Finance

Apps

Centralized

Financial Processes

S/4

BP

C

Source systems:

► SAP (any release)

► non-SAP systems

► Future system (M&A)

ERP 1

ERP 2 ERP n

S/4HANA

Digital Boardroom Analytics

SLT

S/4BPC

► Integrated Planning Application

► Masterdata, transactual data and planning data

consolidated in ONE single system

► What-if Simulations

► Aggregated & Detailed Plan/Actual comparisons

► Top-down and Bottom-up Planning

► Integrated Consolidation Solution

SLT ► Realtime Data Replication

► Data Filtering

► Data Enhancement

► Field Extensions

► Data Transformation

► Extract, Transform, Load

CFIN

HUB

► Central Processes in AR and AP

► Finance Data Hub for central Real Time Data

Processing

► Centralizing Closing & Reporting Procedures

► Universal Journal as single source of truth

► S/4HANA CFIN as platform for a varity of

business processes all covered in one system

Fiori & Mobile Devices

►►►►►

S/4 HANA Strategic approach: ERP Roadmap

Program


Business transformation & system consolidation

ERP Roadmap was endorsed as landscape simplification project and has now to be turned into a full business

transformation program to support AD transformation / harmonization on operational level.

Implement an AD

wide template

upfront and tackle

different business

types along the

migration path

Template Specifics

Entire solution governed by one team

SAP S/4HANA Standard as golden rule


Transformation Approach – following business / IM priorities

business / IM

priorities

Eurodrone (dev phase) requires

Commercial ERP by mid of 2019 ! !

ERP Program - Executiv SteerCo

Definition/Implementation of AD wide template will

involve stakeholders cross AD and therefore is very

time consuming.

Also the business types of the first migration candidate

(system?) must be implemented before any entry into

service.

(System) consolidation

IM cost savings

HANA Migration by 2025


ERP Architecture

Business & Process Integration View

• Cloud based standard SAP, template

based system, for all non-core countries

• Replication of relevant master data

IP3 -> Public SAP Cloud

• Replication of FI/CO Results IE3 -> IP3

• Central MySupply for Airbus DS for: • General Procurement (indirect orders)

• Airbus DS Procurement (direct orders)

• eCatalogue and approval

• Full ERP capabilities & Integration for all

core countries within the „international

restricted zone“

• Central Financial processing & closing

• Replication of Master Data CFIN -> NEO

• Full ERP capabilities for all core countries

working in „National restricted zones“

• Transfer of FI/CO items NEO -> CFIN

ETL – Financial Reporting

NEO & International (incl. CFIN)

International (incl. CFIN)


ERP Roadmap – Deployment Sequence

2018 2019 2020 2021 2022 2023 2024 2025

AD ERP Tem. Euro-drone

Phase 1

LM3 Migration CC 51

DE3 Migration

SLC: E40 Migration

IN3 Landscape

SAPHIR landscape

AD ERP Template Eurodrone Phase 2

AD Netherlands (Leiden)

NUP UK SAPHIR

kicked-off

Add. requirements

Signalis FR

AiM FR FR

SAPHIR (P11) Migration GE

SP1 Transformation

OPAL Transformation

ADP Migration

HQ Real

Estate

CCs

IFRS 15 (DSP)

Migration border

security cc into 4289

(DSP)

Carve-in ENS Spain

(P11)

SAPHIR (P11, NFP) Migration FR

SAPHIR (P11, NUP) Migration UK

SAPHIR (P11) Migration

ES

DSP / LM3 / P11

Migration Real Estate

LM3 Migration FUS

(Client 110), ACMA

SLC: P01 Migration

DSP Migration

TZ Migration IN3

(others?)

CIS / Navision ERP by

2020 (obsolescence) SLC Spanish Navision

System

? ?

1

2

3

2

1 3

4

4

5

5

4

2

2

2

3

5

3

3

4

2

3 3

3

1 2 3 4 5

complexity

high low

MIA Landscape

As-is

To be


ERP Roadmap – Major challenges

Overall Challenges

► Availability of experienced consultants (S/4 HANA)

► Very tough and fixed timeline with regards to business ambition (harmonisation) and number of systems to be tackled

► Parallel initiatives e.g. PLM landscape / manufacturing execution systems

► Mixture of Agile Approach and Waterfall Approach led to several test cycles and several go-live

Technical Challenges

► Architectural considerations following data various national/international data classification in defence business (High

security environment & Airbus security policies).

► Lean migration approach to be defined / system archiving approach

Business Challenges

► Process harmonisation across different business lines

► Workforce / skills

► Organisational complexity (3 former divisions, group functions)

Thank you.

Frank Graeve HO ERP/BI foundation & BRM Finance

Airbus Defence & Space

Willy-Messerschmitt-Straße 1

D-85521 Ottobrunn/ München

Phone: +49 (0) 31795211

Email: [email protected]

Web: https://airbusdefenceandspace.com