Hello stream 5:Application

Management

Readiness Roadmap 2025

Using Solution Manager 7.2 Tools and Functionality for Gap Analysis to move

from SAP ECC6 EhP5 to S/4 HANA.

aboutJohan LaasJohan has been employed by Rand Refinery for the past 25 years in various roles, Refinery, Smelter,Sourcing and Business Improvement Manager. Since 2010 as Chief Information Officer and as part ofthat the Program Manager for the SAP implementation in 2013.

aboutBrent SteensmaBrent has been employed by Rand Refinery for the past 6 years as Application Manager. Previously at AngloAmerican in the role of Global Systems Manager HR for both Anglo American and Anglo Platinum HR systems. Wasappointed as Solution Manager AFSUG chairman in 2018.

aboutTirrie SteynbergTirrie has been employed by Britehouse for the past 2 years in various roles, SDM (Service Delivery Manager),Solution Manager Team Lead, Technical Operations Delivery Manager and Project Manager for different projectsand deliverables.

Rand Refinery

Background

SAP Implementation 2013

5 Years Later - 2018

Support Partner

ChangePreparing for 2025 – SAP/4 HANA

GAP Analysis

Results & Conclusion

Solution Manager Roadmap

AGENDA

Rand Refinery Background

About Us

Based in Germiston, Johannesburg

One of the largest single-site precious metals refining and smelting complexes in the world

Krugerrands

Minted Bars Cast Bars Coin Blanks

SAP Implementation 2013

The SAP Implementation 2013

BASIS

GRC

QM PP SD TRM

FI CO MM PS

AR AP PM TM

OM PA PY PT

SA

P

Sta

nd

ard

SAP

Cor

e

2013

SAP

Implementation

SAP Standard Modules

SAP Standard modules are

“vanilla” / “stock standard”

modules without any

customisation

SAP Basis

Technical foundation and platform

health, enables SAP applications to

function.

SAP GRC

Access Administration and

management of Governance, Risk

and Compliance in our SAP

Landscape. “Authorisations” &

SOD

SAP “Core” Modules

PP, QA & SD are customised for our

“Refinery Template”.

Our Customisation includes:

• Interface to LIMS & Fulcrum

• Batch Generation Engine

• User Decision Engine

• Batch Classification Engine

• Treasury Dashboard

• Contract & Pricing Matrix

All of the above affects the:

• Creation of Batches

• Movement of Metal

• Assay Results

• Metal Content

• Ownership transactions

• Sales and Swops

• Determining the Payable Content to

Depositors

ECC 6 EHP 5

10

Batch

Generation

UD Engine

Classification

Ownership

Contract

Matrix

Yearly Pricing

Proc.

TR dashboard

Fulcrum

PLC

Exmente

Reuters

FNB

Fintegrate

Key

Engine

Interface

LIMSOwnership

SAP CORE Solution

Solution Manager Roadmap

accelerate your ambition

Completed Innovations / ProjectsSAP Solution Manager Roadmap

ITSM Incident Management Service Request Management Problem Management Knowledge Management

Custom Code Management & SEA

Applications Operations System Monitoring Interface & Job Monitoring

Test ManagementIT CalendarTask Management & Notification Management

Retrofit

CHARM – All Change Types

EWA

Solution Manager 7.1 (2015) Solution Manager 7.2 (2017/8)

ITSM Incident Management

ITSM Incident Management Service Request Management Problem Management Knowledge Management

CHARM – All Change Types CHARM – All Change Types

Retrofit

Custom Code Management Custom Code Management

Scope and Effort Analyzer Scope and Effort Analyzer

Solution Documentation Process Management Solution Documentation BPA & BPMON

Applications Operations EWA

Applications Operations Advanced EWA System Monitoring Interface & Job Monitoring IT Calendar Task Management & Notification Management

Test Management

5 Years Later - 2018

Important Decision Points for SAP Landscape

Challenges & Risks Business Requirements

• Keep the lights on (ECC6 EHP5)

• Clean-up Custom Code and reduce support cost.

• Upgrade to EHP 8?

• S4/HANA?

Upgrade; Reimplement or stay current?

• Replace or change Interfaces? Fulcrum with MES

• Compliance to SARS causing incompatibilities and gaps

between SAP Modules (Detail next slide)

• Why Support Partner change?

• Include Success Factors? Maturity of business & focus

SAP Platform stable New business requirements Business re-engineering

Rand Refinery © Confidential 15

Sanet Janse van Rensburg

2018/06/27

ESS/MSS

SOLMAN

ESS/MSS

SOLMANSOLMAN

Background

Compliance to SARS causing incompatibilities and gaps between SAP Modules

Ba

BASIS

GRC

QM PP SD TRM

FI CO MM PS

AR AP PM TM

OM PA PY PT

SA

P

Sta

ndard

SA

P

Core

2013SAP Implementation

BASIS

GRC

QM PP SD TRM

FI CO MM PS

AR AP PM TM

OM

PA PY PT

BASIS

GRC

QM PP SD TRM

FI CO MM PS

AR AP PM TM

OM

PA PY PT

BASIS

GRC

QM PP SD TRM

FI CO MM PS

AR AP PM TM

OM

PA PY PT

2015 2016 2018

+34

+12

+21

34

41

62

GAP

GAP

GAP

Comply: SARS Regulations - annual SAP HR Support Packs/ Software Updates have to be installed.

Risk increase: Updates causing a gap and incompatibility between the SAP Modules in a highly integrated and

interdependent SAP Solution.

Support Packs / Software updates also includes generic fixes;

applicable to ALL SAP Modules.

Examples:

• Changes on terms used in SAP Programming

• Fields previously not mandatory, now becomes mandatory

• Fields previously allowed to be blank, must now be populated

with data or “0”

The Effect: Historic data must be fixed to accommodate

these updates

Impact of HR Support Packs on all SAP Modules

Impact of HR Support Packs on all SAP Modules

The impact of Generic Updates on the Rand Refinery

Customised SAP CORE Solution:

2015

• SAP Core: Batch Classification Engine

Changes on terms used in SAP Programming:

“Commit Work” command line

• Fulcrum Interface

Changes on terms used in SAP Programming:

“Update” command line

2016

• SAP Core: Treasury Dashboard

• Technical Bug: Programme Error - Settlements

• Technical Bug: Programme Error – Transaction Management

Commodity Swaps & Forwards

2018• SAP Core: Batch Classification Engine

No Blanks Allowed Fields:

• Historic Assay Characteristic fields not populated with results

must be populated with 0

• Assay Results tables where historic batches populated with

Character “JDEBatch” (Used for SAP Data Take-on)

• Where Batch Statuses and Weight Statuses are Blank

Effort in hours (excluding business testing), tripled while the number of HR Support Packs have doubled in number.

Due to the complexity in our Custom SAP CORE Solution and the integration between SAP Modules.

Support Partner Change

Why Choose Britehouse AMS

High dependency on External Functional support

No super usersLimited in house Level 1 support

Stagnant platform no innovationFalling behind

Preparing for 2025 - S4/HANA GAP Analysis

SAP GAP Analysis Project

Focus Areas of the GAP Analysis project:

1. CUSTOMIZATION: Quantify the effort for de-customization of the current ECC6 EHP5 SAP

solution - move closer to SAP Standard.

2. TECHICAL: Understand the impact of the OS and SQL upgrade on the current customized

solution – Technical Evaluation

3. FUNCTIONAL: Perform a Functional Analysis & IT Optimization Identification

Technical Evaluation

OS and SQL Impact

Functional Analysis

IT Optimization Identification

Customization

Moving closer to SAP

Standard

21

Analysis

Toolset

ANALYSIS Process

Reporting Outputs

S4 Inputs

Processes

Custom Code

Focus Areas

Transformation Navigator

BSR

PathFinder

CCM

SEA

Z Obsolete Code

Process Efficiencies Modifications

Basis Patch Levels

Quick Wins

Risk Mitigation

items

Custom Code Suggestions

Technical Recommendations

Custom Code Maintainability

Report

Return to SAP Standard /

Decommissioning Cockpit

Copied Code

EnginesInterfaces

HEAT MAP

Technology Filter

Consulting Filter

Business Value Drivers

Support Volume Statistics

Technical Performance

Financial Value Drives

Business Benefits

Tool Analysis

Lessons Learned

Basis Experience

Consulting Experience

PAM

EWA

Upgrade Assessment

22

Toolset 1: Functional Analysis, IT Optimization Identification

Pathfinder (All / Sales / Finance) BSR (Business Scenario Recommendation)

Transformation Navigator

23

Toolset 2: Technical Requirements

SAP PAM (Product Availability Matrix) EWA (REP / RGP / RRP / SMP)

Microsoft Product End of Life Support ListBasis Interrogation of Systems

24

Toolset 3 : Custom Code Analysis

CCM: Custom Code Management

SAP Upgrade Assessment

SEA: Scope & Effort Analyzer

SAP Engine InterrogationInterface Interrogation

Custom Code

Maintainability Report

SAP GAP Analysis – Custom Code Results

63.47% of all custom transactions and reports in the

system have not been executed in the statistics period.

(12 months)

Recommendation: Check whether unused custom

transactions and reports are still needed.

There are NO custom objects with syntax errors, in the system.

There are NO inactive custom objects in the system.

Custom Code – Custom code is optimised and Fit-to-purpose,

with no additional custom code reduction identified based on

EHP8 functionality.

Custom Code – Large amount of custom code exists

as well as Obsolete and Copied(Cloned) code on the

platform.

Recommendation: Evaluate if it will be worthwhile to

engage into a custom code rationalisation program if a

Re-Implementation strategy is selected as the

S4/HANA route selection

Customization

Moving closer to SAP

Standard

18% of all transactions and reports that have

been executed in the period are in the

customer name range.

Recommendation: Creating custom code is

unavoidable if the required functionality is

not available in the standard system.

However, it also results in high costs for

ongoing maintenance. Therefore, you must

carefully check whether the required

functionality is available in the standard SAP

system.

Custom Code Management – City Model: The Quality

dimension shows the number of good, medium and

low-quality objects - 299 optimization objects identified

SAP GAP Analysis – Functional & Technical Results

Business Processes - Business processes

and business process steps are not

configured.

Recommendation: At least the most important

CORE business processes should be

documented in SAP Solution Manager.

OS / DB / Kernel : Stable till Jan 2020.

Need intervention to manage risk

Recommendation: OS / DB / Kernel

upgrade recommended

Interfaces: Interfaces are fit for purpose. ODBC connections

can be optimised to de-risk the environment.

Recommendation: SOLMAN monitoring tools are identified

that will add Risk reduction.

Job Schedule Management – Due to the way the engines

are defined, batch jobs are running in the background to

execute the transactions and ensure transaction locking

does not happen.

Recommendation: Management of Background jobs can

act as advance warning system on critical business Jobs.

Knowledge Transfer Program –

Deployment of consultants (A and B) to

support program going forward

ECC 6 EHP 5 : Will be supported until

end of 2025

Technical Evaluation

OS and SQL Impact

Functional Analysis

IT Optimization Identification

Major IT Improvement Opportunities

Identified

Recommendation: Solution Manager

BPA & BPMON to measure KPI’s

The business scope of the system is

considered to be Medium. However

insufficient testing can lead to critical

disruption of your business processes.

Recommendation – Enhance / Automate

testing procedures Solution Manager Test

Management.

27

Issue on Hand Findings

How much custom code do we have? TOTAL number across all systems: 13 163 Objects

How much custom code is used? 7059 Objects used, 6104 NOT used

Can we de-customize our current SAP Solution

ECC 6 EHP 5 to get closer to SAP Standard? If yes,

what can be done and what would be the benefit?

It is possible to get closer to SAP standard, but the risks and cost may

outweigh the benefits, as per the decommissioning impact. Benefit is

dependent on the journey taken to get to S4/HANA

What do we need to do to sweat our assets and keep

the lights on with ECC 6 EHP 5 until 2025? What are

the risks on: OS / SQL / Kernel?

Upgrade the OS / DB and Kernel asap (one year window).

Could not identify a quantifiable benefit to upgrade to EHP8 now. EHP5 is

stable and supported till 2025

What is the pre-requisite (min EHP level) for

upgrading to S4/HANA? EHP 5 / 7/ 8? Just Technical

Upgrade or Functional as well?

On the Migration route: Min EHP to upgrade to S4/HANA is EHP7.

Suggested to go to EHP8 before migrating. Can be done in a one step or

a two step:

- One Step: Technical upgrade to EHP8 and then Technical + Functional

Migration to S4/HANA. Test and GO live.

- Two Step: Technical upgrade to EHP8. Functional Test and go live.

Technical + Functional Migration to S4/HANA and test and go Live.

On a Re-Implementation route: No need to upgrade to EHP8 before

project

Pivotal Questions to AnswerKey Questions Answered

Conclusion

Quick Wins to keep the lights on and Mitigation Risk

Optimize quality of long running processes (Integrated across modules)

Optimize interface connections – remove ODBC

OS/DB/Kernel upgrade de-risk.

Solman 7.2 Program:

Interface and Connection monitoring.

Job monitoring / Job Schedule Management (Engines).

Business Process Analytics (Pathfinder KPI’s).

Business Process Monitoring on critical processes.

Solution Documentation and Administration.

Knowledge Transfer Program for CORE Solution

Conclusion relevant to Scope of Work

• No Enhancement Pack 5 recommendations will remove/replace current Custom Code.

• No Enhancement Pack 8 Recommendations will remove/replace current Custom Code.

• If Rand Refinery decide to re-implement on the S4/HAHA platform, the custom code

decommissioning will not add any value.

• OS/DB/Kernel Upgrade needs to be addressed urgently – Windows 2008.

• Custom Code found Fit for Purpose

• Opportunities for Interface optimization exist.

• Solman Manager Tools can be deployed to de-risk the Custom code environment

S4/HANA Roadmap – Option 1: Upgrade

Benefits Drawbacks

Historical data is available after Migration to S4/HANA

Opportunity of Bus Process Re-engineering is missed; as the technical upgrade is the focus point

Minimized implementation risk: Focused to keep business as usual.

Custom Code needs to be Cleaned up and Migrated

The same old processes will be deployed without re-engineered thinking. 10 year old processes and system solution will not be revitalized.

Simplification interpretation (CVI, Business Partners, Material numbers, etc.).

Archiving a pre-requisite to minimize the Hardware sizing

System downtime to be managed during cut over

Capacity of the IT team and IT

support partner to migrate to

S4/HANA platform.

Capability/availability of

business to engage in

extensive functional testing

program during migration to

S4/HANA

NO

S4/HANA Roadmap – Option 2: Re-Implementation

Benefits Drawbacks

New Simplified Business Processes are deployed. Fiori enabled.

History data needs to be managed on a legacy or archive platform. Onlyopen items are migrated to S4/HANA

New dimension products such as C4HANA, BW4HANA, EWM etc. may be deployed as part of the BPRinitiative.

Change Management and Training a major Component of the project

Model Company components can be utilized to fast track best business practices

Data Migration is primary concern of the project (Time and effort)

New Fiori based products available Total project implementation effort for re-implementation

Business willingness to

make key resources available

for extended period of time for

re-implementation

Visionary capability to

embrace an innovation

program (Risk-appetite)

YES

Contact details

Name : Johan Laas

Company : Rand Refinery

Email : JohanL@gold.co.za

Contact # : + 27 (0)11 418 9223

Website : www.RandRefinery.com

Name : Brent Steensma

Company : Rand Refinery

Email : BrentS@gold.co.za

Contact # : + 27 (0)11 418 9050

Website : www.RandRefinery.com

Name : Tirrie Steynberg

Company : Britehouse

Email :Tirrie.Steynberg@Britehouse.co.za

Contact # : + 27 (0)83 304 7526

Website : www.Britehouse.com

Thank you