sap s/4hana in automotive

Use this title slide only with an image

Frank Wagner, Juergen Helmle SAP SE – Germany

SAP S/4HANA in AutomotiveSAP S/4HANA Materials Management and Operations and Transition to SAP S/4HANA

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2Customer

SAP S/4HANA in Automotive: Agenda

SAP S/4HANA for Automotive

SAP S/4HANA – Transition Scenarios (overview)

SAP S/4HANA for Automotive (Outlook)

SAP S/4HANA – System Conversion (Details)

Q & A

SAP S/4HANA – More Information







Q & A


© 2015 SAP SE or an SAP affiliate company. All rights reserved. 4Customer© 2015 SAP SE or an SAP affiliate company. All rights reserved.

SAP’s Next Big Thing

R/2

1979

R/3

1992

ERP

2004 2015

S/4HANA


SAP S/4HANAOur Next-Generation Business Suite

SAP S/4HANA Enterprise Managementbuild the next-generation business suite

» Innovative in-memory Database

» New architecture and data models

» Renewed applications

» New UI technology

» Cloud & on-premise deployment models

» Natively integrated


Complex business processesLarge organizations can spend between 40% and 80% of their time on non-value-added activities

(BCG, Complexity Report)

Complex technology73% percent of executives said the complexity of data is the largest IT challenge

(Forrester, 2013 report)

Where does complexity hide in enterprises?

Complex decision making“Large global organizations havecreated so much complexity that businesses often struggle to bring good ideas to the marketplace profitably.”

(McKinsey, 2014)

Scattered information Technology limitationBatch orientation

10.2% or $237B* of profits lost by top 200 global companies due to hidden costs of complexity

*Global Simplicity Index, 2013


SAP S/4HANA – The Customer Has The Choice

SAP S/4HANAOn-Premise Edition

SAP S/4HANACloud enterprise edition

Subscription licensing with deployment in the private cloud, maintained by SAP

Traditional licensing with customer control of deployment and maintenance

SAP S/4HANA on-Premise is already available with the combination of Suite on HANA with an exchange innovation add-on for Simple Finance. As of Q4/2015 with integrated Simple Logistics.

SAP S/4HANACloud marketing edition

Cloud project services edition Subscription licensing with deployment in the private cloud, maintained by SAP

The scope of this solution is close to a full ERP scope (Business All in One scope) however focusing on supporting standard scenarios.

Providing simplified key scenarios with a clear focus and priority on the cloud qualities, which are guaranteed across all UIs and all processes to ensure that a true SaaS solution is offered.


Evolution to S/4 HANA Enterprise Management

SAP ERP 6.0

SAP NetWeaver

ERP 2004 ERP6 EhPxAny DB

ERP6 EhP8Any DB

ERP6 EhP7HANA

S4/HANAEnterprise Management

4.7 ERP6 EhP8HANA

Any DB HANA

sFin 3.0

Enterprise Management

sFin 2.0sFin 1.0Financials Logistics ….


in small, medium & large companies

SAP Business Suite, powered by SAP HANA is primetime

841+ Live customers1858+ go-live projects

in 79 countries

31% 66% 3%

<100 users 100 – 10.000 users >10.000 users

185 in HANA Enterprise Cloud (HEC)

in all 26 industries

……

>53% through Partners170+ active Partners

as of May 13th

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&docid=k-yTuvep1GAinM&tbnid=5DjeLu3S1S4D6M&ved=0CAgQjRw&url=https://www.shopperscritique.com/automotive-industry/&ei=7jygU8zBFvSM7AaXmoCwBQ&psig=AFQjCNEj6DIX-O7ha6b7WdkudV5YvLrcTg&ust=1403096686488492

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=1UC8keAuOIuwdM&tbnid=FNAoJQ97moyoAM:&ved=0CAUQjRw&url=http://www.davemanuel.com/2010/01/18/wsj-compensation-at-major-us-financial-companies-set-to-top-140-billion-dollars-in-2009/&ei=PT2gU5nKOIbgPJrMgOAK&psig=AFQjCNHwO7EJCboV2OB8O-MgQ1jUpp9tCg&ust=1403096742339832

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=flrcxvL221iKMM&tbnid=-_C1JtccGMKACM:&ved=0CAUQjRw&url=http://www.flaticon.com/free-icon/tower-crane_31772&ei=uD2gU8XUO8bZOeKngbAD&psig=AFQjCNEOtk7g4uVPkt14reFNN5k2rvWpvQ&ust=1403096876721136

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=_E3AbqFzcWbtNM&tbnid=V7WWGwlDeaKwTM:&ved=0CAUQjRw&url=http://www.greenpeace.org/eastasia/magazines/issue03/financial-summary/&ei=Cz6gU-yZNIXuOfKugZgG&psig=AFQjCNEtV1C0w_PndmgJLCuRdQn5uFE84A&ust=1403096971010587

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=r-eXJZL9EKq7lM&tbnid=JzFtcoQ_2ZIW7M:&ved=0CAUQjRw&url=http://4vector.com/free-vector/hotel-icon-near-shopping-100543&ei=bD6gU4igAYX6PP3VgNgE&bvm=bv.68911936,d.bGE&psig=AFQjCNE6nQE_4m6zLW9Ug_psuovdahdl1A&ust=1403097030916306

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=cM74pgApLQmkSM&tbnid=0QOwkv7rI9q9oM:&ved=0CAUQjRw&url=http://www.iconarchive.com/show/ios7v2-icons-by-visualpharm/Industry-Engineering-icon.html&ei=sz6gU6vTAonhOqSzgJAO&bvm=bv.68911936,d.bGE&psig=AFQjCNG77eKWr85_x9TPDnWqgdW9MkTl8g&ust=1403097135472221

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=KhOJ8LVh6er-aM&tbnid=sTATtqGFHCoeKM:&ved=0CAUQjRw&url=http://www.clker.com/clipart-213734.html&ei=DT-gU-7nOcjdPZ_KgfAB&bvm=bv.68911936,d.bGE&psig=AFQjCNHULbM8t49mCqgCHUrIGVdDG8iOTg&ust=1403097193781379


One central Deployment OptionsCentral Finance – Finance harmonization across heterogeneous landscapes

Real-time replication of financial (FI) and management accounting (CO) postings from several source systems into a central simple finance system

Document drill back to the original FI document in the source system

Replication of cost objects (production orders, product cost collectors, and internal orders) from source systems to the central system

Mapping functionality for harmonization of master data before posting into central finance

Single Source of Truth for Financial Data for reporting and planning

Access to existing master data mapping from SAP Master Data Governance (optional)

Benefit from SAP Simple Finance while not touching your existing system landscape


SAP HANA, our great simplifier for enterprise applications

SAP HANA

SAP Business Warehouse powered by SAP HANA

SAP Business Suite powered by SAP HANA

SAP Simple Finance powered by SAP HANA

Real-time analysis Real-time reporting

Real-time business OLAP and OLTP together SAP HANA Enterprise

Cloud for SAP Business Suite on SAP HANA

In-memory platform Instant financial insight

No aggregates Single source of truth

Simplified data model New user experience Advanced processing Choice of deployment

2011 20132012 2014 2015


SAP S/4HANA Suite Introducing the next generation core and lines of business solutions for the digital economy

SAP S/4HANA MARKETING

SAP S/4HANA HUMAN RESOURCES

SAP S/4HANA MANUFACTURING

SAP S/4HANA SUPPLY CHAIN

SAP S/4HANA SALES

SAP S/4HANA FINANCE

SAP S/4HANA SERVICE

SAP S/4HANA SOURCING & PROCUREMENT

SAP S/4HANA ASSET MANAGEMENT

SAP S/4HANA RESEARCH & DEVELOPMENT

The Digital C

oreThe

Dig

ital C

ore



Logistics

SAP S/4HANA Enterprise Management


Product Lifecycle Management (PLM)

Logistics Execution (LE)

Materials Management (MM)

Quality Management (QM)

Sales and Distribution (SD)

Financials

HCM

» SAP S/4HANA Materials Management & Operations comprises generally the functionality covered byECC 6.0x logistics

» Major Simplifications in Inventory Management Material Requirements Planning Capacity Planning Sales and Distribution Procurement

» Complemented by capabilities of SCM CRM PLM SRM

» Supporting digital trends like Internet of Things, Business Networks, etc.

Logistics General (LO)

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, Mining,

Chemicals

The

Dig

ital C

ore


Procurement

SAP S/4HANA Enterprise Management Key innovations 1511 mapped to Product Map

Key Innovations 1511

Material Requirements

Planning

Capacity Planning

Order Mgmt. & Billing

Inventory Management

Material Valuation

Industry to Core Accelerated Financial Close

Universal Journal &

Central Finance

Available to Promise

DIMP is the most widely used industry solution within SAP.

This solution is heavily used by cross industry customers.(25 % Inside / 75 % outside leading industries)

Therefore SAP´s strategy has to support these End-to-End Processes via SAP S/4HANA.


Industry Value Chains are transformingSAPs Strategy: Make industry leading processes accessible for everybody in S4/HANA (Pick from the buffet)

Fact: BASF runs DIMP JIT in an single instance today

Concept: Meyer Werft is using Lean Manufacturing concepts like JIS today for Shipbuilding

Oil & Gas Service Companies are renting out heavy equipment (Equipment Tools Management) IS OIL & IS DIMP (today Side by Side ) need to be on a single instance (future).

Transformation in full motion: Google is planning to develop cars

You thinkYou see You need

Source

Source

Source

Source

Source

Source

Equipment Value several Bill USD

Engineering plastics and polyurethanesin the BMW i3

Toda

yFu

ture

http://worldaccount.basf.com/wa/plasticsEU~de_DE/portal/show/content/campaigns/bmw_i3/bmw_i3

http://www.cat.com/de_DE/products/new/equipment.html

http://www.meyerwerft.de/de/meyerwerft_de/schiffe/kreuzfahrtschiffe/aida_cruises/aidastella/aidastella.jsp

http://image1.spreadshirtmedia.net/image-server/v1/compositions/120294902/views/1,width=235,height=235,appearanceId=1/Reagenzglas-T-Shirts.jpg

http://www.national.co.uk/tech-powers-google-car/images/Car.png

http://t3n.de/news/wp-content/uploads/2015/04/googlesearch_61200.png

http://worldaccount.basf.com/wa/plasticsEU~de_DE/function/conversions:/publish/common/upload/engineering_plastics/bmw_i3_flyer.pdf


SAP S/4HANA – Synergies & collaboration in 3 dimensions

Innovation in business processes■ Throughput in inventory

management and valuation■ MRP on HANA■ ATP■ Rebate processing

Innovation in Architecture ■ Throughput ■ Scalability ■ Principle of one■ SAP Fiori ■ TCO reduction

Innovative Cross Industry Business Processes for: ■ Automotive; Aerospace & Defense; Engineering,

Construction & Operations; Industrial Machinery & Constructions; High Tech

■ Processes:˗ Just in Time / Just in Sequence Processing˗ Advanced Batch Management˗ Lean Manufacturing and Logistics with Kanban˗ Material Interchangeabilities and Succession˗ Automated Credit Memo Processing˗ Scheduling Agreement Processing˗ Vehicle Management System˗ Build-to-Order Optimization˗ Automated Earned Value Management˗ And many more

17© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Key Innovations in logistics

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

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

Order Management & BillingEnable 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.

ProcurementIncreased efficiency in the Procure-to-Pay processes, new Analytical Apps & Spend KPI’s, Ariba Network Integration for PO Order and IV.

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

Available To Promise & Backorder processingEnhance ERP by advanced ATP capabilities in APO, new coding to make it better, innovation benefit as functionality will be refreshed.

Capacity PlanningNew deployment option for bringing PP/DS on ERP, reducing integration efforts, allowing seamless master data & UI harmonization.

Material ValuationPrinciple of One, scalable material valuation capabilities, utilizing Material Ledger, that way customers can use multi-currencies, valuation methods per different accounting laws like GAAP.

Industry to CoreDiscrete industries functionalities such as Just-in-Time & Just-in-Sequence available for wider cross industry adoption through the Core

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 18Customer 18

Business Challenges

» Increasing customer service

» Low inventory accuracy

» Revenue losses due to stock-outs

» On-time delivery performance

Capabilities

» Prioritized view on material flow issues

» Real-time alerting

» System-generated solution proposals

» MRP can run sub-daily and as frequently as required

» Demand information is propagated faster through the supply chain

Business Benefits

» Clear visibility across the material flow

» Proactive decision making in response to changing demand

» Flexible tailoring of available capacities and receipts to meet required quantities

» Real time inventory monitoring and automating the creation of procurement proposals

Material Requirements Planning

Business Benefits

» Fast Performance by up to factor 10 / Memory footprint reduction by factor 5

» Role-based, KPI-driven solutions are proactively proposed for users to consider

» System analyzes and does Impact Analysis of the entire material flow in real time and identifies disruptions in the material flow

» Run on any device


How SAP S/4HANA helps Flexible Process Automation(Principle of code push down in MRP)

App-Server DB-ServerDispatcher

Read planning file entries

For every planning file entryRead planned orders

EbanRead purchase requisitions

Read purchase orders

Read production orders

Read sales orders

Read stock transfer demand

Read planning file entries

For all planning file entries with the same low-level code

Plaf

Mdbs

Caufv

Vbbe

Mdup

ReadEban

Read Plaf

Read Ekpo

Afpo Vbbe EkkoMerge + Split

MRP planning logic

Plauf

Eban

Update planned orders

Update purchase requisitions

Plan set 1

Plan set 2

Plan set 3

Merge + SplitInsert Plaf

Insert Eban

Insert Resb

ABAP post-processing (e.g. determine release strategy)

In the classic implementation, the application server calls the database server many times to read a lot of data. This data is then transferred from the database server to the application server. All tables are read sequentially one after another.

In the SAP S/4HANA Implementation, many tables are read in parallel using the parallelization capabilities. The data is not transferred back to the application server but used to compute material shortages directly in the database server.

App-Server HANADispatcher

1.300 lines of code ~90 lines of code


MRP PerformanceExample data from a customer PoC

Legend:MRP Classic on AnyDB (12-way parallelization)

MRP Classic on HANA (12-way parallelization)

MRP Live on HANA MRP Live on HANA – HANA only

0

10

20

30

40

50

60

Version 1

Runtime in hours

40,2

Version 2 Version 3

55,5

Reference

Dat

a vo

lum

e in

crea

se

Version 4 Version 5

4,5

17,5

2,5 4,31,5 3,9

5,5

44,8

17,5

Scenario 1 Scenario 2

1,0 2,2

Scenario 1 Scenario 2

Materials 1,5 Mio. 1,5 Mio.

Thereof configured materials 117.000 117.000

Inserted purchase requisitions 1,0 Mio. 1,0 Mio.

Inserted planned orders 2,3 Mio. 10,4 Mio.

Inserted dependent requirements

9,2 Mio 96,0 Mio


Intuitive User Experience and a responsive design

TodayFunctional-based applications

TargetRole-based applications

to: One entry point for the User and UX followingcommon design directions

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

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

to: Decomposed apps for each role with simple functions

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


Decision Support

Simulation

Key Capabilities of an exception-based user interface design

Trends & analytics at a glance

Personalized post-it notes

Full customer contact history

Context-dependent actions

Personalize layout variants Example: MRP Cockpit - Material Shortage

Contact data

Key capabilitiesConsolidation of activities, Intelligent navigation patterns, Intuitive usability


Business Challenges

» Low throughput prevents real-time inventory

» Missing embedded and real-time analytics

» Missing comprehensive data model

» Process & data redundancies increase effort

Capabilities

» Real-time processing of inventory postings and visibility of inventory values

» Posting of finest granularity like handling unit, lot size 1, sensor data

» Decreased stock levels (e.g. reduce buffers) due to increased transparency

» Easy to consume data model supporting flexible analytics

» Manage the changing demand for smaller lot sizes passing through the logistic operations

Business Benefits

» Improve on-time delivery

» Increase inventory turnover

» Reduce cost of inventory

» Single source of truth of inventory in one system

Real Time Inventory Management

Safety stock

Time

Qua

ntity

Reorderpoint

Wee

kly

Rep

leni

shm

ent

Buffers

Daily collectivegoods issues

Just-in-time

Time

Qua

ntity

Safety stock

Reorderpoint

Sub-dailyreplenishment Continuous

goods issue postings


SAP S/4HANA Enterprise ManagementKey Innovations - Inventory Management

MATDOC

Business Suite

AggregatesHistory

Inventory

Material Master

on-the-flyaggregation

26aggregate

tables

1document

table

MSTQH

MSTEH

MSTBH

MSSQH

MSSAH

MSPRH

MSLBH

MSKUH

MSKAH

MKOLH

MCHBH

MARDH

MARCH

MSTQ

MSTE

MSTB

MSSQ

MSSA

MSPR

MSLB

MSKU

MSKA

MKOL

MCHB

MKPF

MSEG

Document

MARCH MARDHMARC MARD

Eliminate Aggregates

Improve by elimination of aggregates


Inventory ManagementExamples for unlimited Data Through put in Goods Movement

Multiple production lines produce same product by single item tracking and combined postings for

Goods issue raw material Goods receipt finished product Goods issue finished product Goods receipt finished product at

distribution center

1. Parallel Production combined postings

Example Use Case:

2. Ice Truck Scenario

Trucks deliver goods to customer directly. Coming back to the distribution center the orders and deliveries are uploaded from offline device. Combined postings

Creation of sales order and delivery Picking of goods Goods issue, invoicing Truck replenishment

Distribution Center

Production Lines

Distribution Center


Simplifications are the enablerfor throughput increase of 10 up to 25

0 10 20 30 40 50 60 70 80 900

200

400

600

800

# Parallel Processes

Thro

ughp

ut

(item

s/se

c)

SAP Business Suite on SAP HANA

Negative stock not allowed

No database locks any more

Automotive scenario test case

Reporting point backflush with transfer posting of 100 items each

60% common parts

large OEM back-flush requirement (example)

Parallel postings of large material documents



Inventory Turnover Analysis

Key benefits

» Real time stock analysis in graphical way

» Overview of the entire inventory turnover situation for the selected scope of materials and / or plants and the selected time range

» Dive into the details of the inventory analysis

SAP LABS PREVIEW



Inventory Turnover Analysis

Key benefits

» Comprehensive stock overview per material on the time scale

» Display the most important inventory key figures

SAP LABS PREVIEW


SAP S/4HANA Enterprise ManagementKey Innovations – Material Valuation

Business Benefits Outlook

» Increased throughput by locking optimization for moving average priced materials

» Introduce new method: periodic price calculation

Capabilities

» Principle of One – one valuation method

» Analytics - analytics performed on primary data

» Clear separation of master data from transactional data

Inventory ManagementMaterial Documents,

Quantities

FinancialsAccounting Document,

Values

Material LedgerMaterial Prices, multi-GAAP,

multi-Currency

SAP LABS PREVIEW-


Business Challenges

» Maintaining customer satisfaction

» Complexity of order management

» Escalating supply chain and IT costs around order fulfillment

» Inaccurate order promise dates

» Quality of data in the collaboration process

Capabilities

» The internal sales representative get an comprehensive overview of the current order fulfillment.

» Ability to monitor, manage and collaborate on sales orders due for shipping and invoicing, thus enabling customer and company agreements to be easily fulfilled in time and quality

Business Benefits

» Get full insights into all issues of the order fulfillment process

» Focus onto most critical issues

» Run actions directly and track the solution progress

» Combines analytical insights with operational actions

» Real-time visualization of KPI including thresholds and alerts

» Enables the decision preparation via internal and external collaboration

Order Fulfillment Cockpit


Sales Order Fulfillment Cockpit

• Provide internal sales representative a single source of holistic transparency on sales order fulfillment issues on desktop and tablet, driven by exceptions.

• Enables effective clarification of issues offering comprehensive decision support, collaboration, and appropriate actions.

• Exception driven workiing model, ‚no touch order‘

2. Process Innovation

Real-time data integration • Single-query access to

data

1. Performance Value

Value Creation through:







Q & A



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 or selective data migration

Example: New or existing SAP customer implementing a new SAP S/4HANA system with initial data load

System Conversion

SAP S/4HANA

ERP System On-Premise

SAP S/4HANAThe 3 transition scenarios

Landscape Transformation

ERP System - Region A -

ERP System - Region B -

ERP System - Region C -

On-Premise

S/4Cloud

New Implementation

On-Premise

S/4Cloud

ERP System

Non-SAP System


SAP S/4HANAScenario 1 – New Implementation

Scenario descriptionNew implementation of SAP S/4HANA e.g. for customers migrating a legacy system.

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

LegacyAny customers legacy system

SAP Fiori

SAP HANA


SAP S/4HANACloud Edition

SAP S/4HANAOn-premise Edition

What How

Install SAP S/4HANA SWPM (Software Provisioning Manager)

Initial data load from source system

SAP Landscape Transformation• SAP source: system connection• Legacy system: file upload;

SAP Data Services additionally supported

1

2

SAP ERP

Option: Initial data load from Legacy or SAP system based on SAP LTNon-SAP


SAP S/4HANA Scenario 2 – System Conversion

Scenario descriptionCustomers who want to change their current system into a SAP S/4HANA system.

Database, SAP NetWeaver and application transition in one step.

Benefits+ Migration without reimplementation+ No disruption for existing business

processes + Re-evaluation of customization and existing

process flows

(SAP GUI) / SAP Fiori

SAP HANA


SAP GUI

AnyDB / SAP HANA

SAP ERP Core

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


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

*

*


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

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


SAP HANA


SAP S/4HANACloud Edition


Consolidation or selective data transformation based on SAP LT capabilities

SAP S/4HANAScenario 3 – Landscape transformation

What How

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

Selective Data TransformationSAP Landscape Transformation• Migration of business units/single entities such as company code• Migration of selected SAP applications (example: central Finance)

1

2







Q & A



Business Challenges

» On-time delivery performance

» Days in inventory

» Revenue loss due to stock-outs

» Adapting to changing plant conditions

Capabilities

» Constraint based planning, using various heuristics and optimizers by bringing PP/DS on ERP, reducing integration efforts and allowing seamless master data & UI harmonization

» Support industry specific planning procedures for automotive, mill, chemicals and many more

Business Benefits

» TCO reduction: PPDS functionality gets co-deployed with ERP on the

same system utilizing one HANA database instance Integration for material master and work center resource

not needed

» Production bottlenecks identified more quickly

» Increased visibility and speed

» Better visibility into inventory and product data

» Responding quickly to new demands

» UI efficiency increased by using MRP cockpit for demand analysis

Capacity PlanningSAP LABS PREVIEW


Comprehensive Plan to Produce in ONE System

Sales Order Entry

MRP Run +Constrained

PlanningInteractive Planning

Release to Production

Production Execution

Monitor and

Control

SAP LABS PREVIEW

Planned Improvements

PP/DS co deployed on ERP System enables:

» UI Harmonization

» CIF Simplification

» Master Data Harmonization

» Analytics

» One MRP

APO-PP/DS HANA Platform incl. Live cache

ERP HANA Platform

HANA Platform incl. LiveCache

Current Future planned

ERP PP/DS

Master data

One MRP

CIF

CIF


Business Challenges

» Difficult to fulfill customer orders on time with the proper quantity

» Inability to promise accurate and reliable order dates

» Inefficient strategies to fulfill orders from the entire network - or to substitute products automatically

» Inefficient strategies to sell scarce products in a fair manner

» Inefficient ways to manage order backlogs

Capabilities

» Fast product availability check and use case-driven product allocation check

» Intelligent and fully automated selection of best confirmation based on current ATP-situation and taking into account existing master data like:» Alternative plants» Substitutable materials

»Backorder processing with intuitive requirement classification and simple selection criteria.

»Automatic exception handling.

»Simple ERP-based transportation and shipment scheduling

Business Benefits

» Fulfill an order on time and in the desired quantity using different kind of checks for different business scenarios

» Perform automatic back-order processing

» Reduce inventory carrying cost

Available To Promise and Backorder ProcessingSAP LABS PREVIEW


SAP S/4HANA Enterprise ManagementKey Innovations – Available to Promise (ATP)

New ATP functionality combines the best functions in one solution

Phased approach 2015: Basic ATP algorithm based on HANA

usage in production (mass ATP-checkfor components)

Future backlog • Flexible rescheduling (gainer/winner/loser concept)• Throughput increase • Decision support • Check against product allocation • Standard interface to IBP to take over allocation data

SAP LABS PREVIEW







Q & A



SAP S/4HANA Scenario 2 – System Conversion

Scenario descriptionCustomers who want to change their current system into a SAP S/4HANA system.

Database, SAP NetWeaver and application transition in one step.

Benefits+ Migration without reimplementation+ No disruption for existing business

processes + Re-evaluation of customization and existing

process flows


SAP HANA


SAP GUI

AnyDB / SAP HANA

SAP ERP Core

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


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

*

*


Prepare Phase Realize Phase

tt2

Maintenance Planner

Pre-Checks Custom Code Migration Worklist

Software Update Manager (SUM)

Application specific follow-on activities

t3 t4 t5 t6

Simplification List SAP S/4HANA, on-premise edition

SAP S/4HANA System Conversion: Sequence

Database Migration

Software Update

Data Conversion

System Requirements

t1


SAP S/4HANA on-premise edition (oP)Transition Paths to move to SAP S/4HANA - Overview

AnyDB or SAP HANA

SAP ERP 6.0, EHP xx SAP HANA

SAP Simple Finance, on-premise edition 1503

AnyDB

SAP HANA

SAP S/4HANA Finance, on-premise edition 1605

SAP HANA

SAP S/4HANA, on-premise edition 1511

SAP HANA


SAP Business Suite SAP S/4HANA family

System Conversion Paths (basically)

2

1

3

From SAP Business Suite(ERP6.0, EHP xx, AnyDB or SAP HANA DB)to SAP S/4HANA Finance oP

1

From SAP Business Suite(ERP6.0, EHP xx, AnyDB or SAP HANA DB)to SAP S/4HANA oP

2

From SAP S/4HANA Financeto SAP S/4HANA oP3

One-Step-procedure• For older SAP Business Suite releases or systems on Non-Unicode an additional step to SAP ERP 6.0 EHPxx is required.

• System has to be an AS ABAP-only system. Dual-stack systems (AS ABAP and AS Java combined in one system) are not supported for the conversion. If your system is as dual-stack system, you have to split it before doing the conversion.

• The transition to SAP S/4HANA does not require the source system to be already on SAP HANA DB

• SAP S/4HANA Finance oP is the first offering under the SAP S/4HANA product family

• The decision to go for SAP S/4HANA Finance oP should be based on the business benefits,but is not a mandatory prerequisite for any system conversion


SAP S/4HANATransition Paths to move to SAP S/4HANA – Details (1/2)

AnyDB or SAP HANA

SAP ERP 6.0, EHP xx

SAP HANA


SAP HANA


SAP HANA


SAP HANA


SAP Business Suite SAP S/4HANA product family

1

2

3

4Start Release Target Release Availability Remarks

SAP ECC 6.0 EHP 0-7SAP Simple Finance

on-premise edition 1503available since:

Q1/2015

Migration to SAP HANA DB [if required], Installation of

Software [EHP7 + sFIN]) 1

SAP ECC 6.0 EHP 0-7SAP S/4HANA Finance,

on-premise edition 1605planned for:

Q2/2016


Software [EHP8 + sFIN]) 2

SAP ECC 6.0 EHP 0-7SAP S/4HANA, on-

premise edition 1511 available since:

Q4/2015


S4CORE Software3

SAP ECC 6.0 EHP 0-8SAP S/4HANA, on-

premise edition 1610 planned for:

Q4/2016


S4CORE Software4

SAP ECC 6.0 EHP8SAP S/4HANA, on-premise

edition 1511 (SR1)


S4CORE Software

planned for: Q2/2016

System Conversion from SAP S/4Finance to SAP S/4HANA

Upgrade within the SAP S/4HANA product family

System Conversion from SAP Business Suite to SAP S/4HANA

Planned

Planned


SAP S/4HANATransition Paths to move to SAP S/4HANA – Details (2/2)

SAP HANA


SAP HANA


SAP HANA


SAP HANA


SAP S/4HANA family

8

956Start Release Target Release Availability Remarks

SAP Simple Finance on-premise edition

1503


available since: Q4/2015

Installation of S4CORE Software

5

SAP S/4HANA Finance,on-premise edition

1605



6


1503



7


1503

SAP S/4HANA Finance,on-premise edition 1605

planned for Q2/2016

8

AnyDB or SAP HANA

SAP ERP 6.0, EHP xx

SAP Business Suite

7


SAP S/4HANA, on-premise edition 1610 9



Installation of sFIN Software (Upgrade)

planned for Q4/2016

InstallationSoftware (Upgrade)

System Conversion from SAP S/4Finance to SAP S/4HANA

Upgrade within the SAP S/4HANA product family

System Conversion from SAP Business Suite to SAP S/4HANA

Planned

Planned


Prepare Phase

Maintenance Planner

Pre-Checks Custom Code Migration Worklist

Simplification List SAP S/4HANA, on-premise edition

Simplification ListTo allow our customers a better planning and estimation of their way to S/4HANA, we have created the “Simplification List”. In this list we are describing in detail on a functional level what happens in S/4HANA to individual transactions and solution capabilities. If some transactions or capabilities are falling away, this does not mean that we are decommissioning functionality, but that we have merged this functionality with other elements or reflected it within a new solution / architecture.

Simplification List for SAP S/4HANA, on-premise edition (1511 FPS2): Link

Supporting ToolingMaintenance Planner is a solution hosted by SAP and offers easy maintenance of systems in your landscape. The Maintenance Planner checks the system with regards to business functions, industry solutions, and add-ons. If there is no valid path for the conversion (for example, the add-on is not released yet), the Maintenance Planner prevents the conversion. For more information regarding Maintenance Planner see SAP Help: http://help.sap.com/maintenanceplanner

Pre-checks are shipped as SAP Notes to customers that want to convert to SAP S/4HANA. Customers can use these pre-checks to find out what mandatory steps they have to carry out before converting to S/4HANA. The results list the instances that need addressing before attempting the conversion process. The checks are run twice again during the conversion process: both times in the Software Update Manager (SUM). The conversion is stopped if errors persist. Implement SAP Note 2182725, and all the related notes attached to it.

To convert your SAP system to SAP products based on SAP NetWeaver 7.5, such as SAP S/4HANA, any simplifications made to SAP objects need to be considered in your customer objects. The Custom Code Migration Worklist displays all customer objects that refer to simplified SAP objects and links to information about how to adopt these customer objects. For more information about the Custom Code Check tool, see SAP Help Portal: Link and the following SCN blog: Custom Code within SAP S/4HANA On-Premise.

SAP S/4HANASystem Conversion – Preparation steps

https://uacp.hana.ondemand.com/http.svc/rc/PRODUCTION/pdfa4322f56824ae221e10000000a4450e5/1511%20002/en-US/SIMPL_OP1511_FPS02.pdf

http://help.sap.com/maintenanceplanner

http://help.sap.com/saphelp_nw75/helpdata/en/0b/b83ef76fbf46c89fd9fa5f3af8c0c6/content.htm?frameset=/en/0b/b83ef76fbf46c89fd9fa5f3af8c0c6/frameset.htm&current_toc=/en/d1/802cfc454211d189710000e8322d00/plain.htm&node_id=5&show_children=false

http://scn.sap.com/docs/DOC-70449


To enable our customers to plan their journey to SAP S/4HANA in detail, we have created the “Simplification List for SAP S/4HANA, on-premise edition 1511”. This list provides detailed functional-level descriptions of the required changes to individual transactions and solution capabilities in SAP S/4HANA. It supports customers who are transitioning from SAP ERP 6.x or SAP Simple Finance, on-premise edition, to SAP S/4HANA, on-premise 1511 edition and includes guidance on the activities customers need to complete before, during, and after the conversion to SAP S/4HANA.

Current Version: Simplification List for SAP S/4HANA, on-premise edition 1511 FPS02: Link

S/4HANA SCN: Further Details for selected Simplification Items (e.g. Business Partner Approach, Material Field Length extension, …): Link

SAP S/4HANASystem Conversion – Simplification List










The Simplification List serves three purposes: • Planning the actual system conversion from a traditional ERP solution to SAP

S/4HANA• Reducing efforts during the actual conversion by enabling individual

Simplification Items to be dealt with in advance for those customers intending to migrate in a future project.

• Implementing SAP S/4HANA-compliant strategic capabilities when rolling out new capabilities to avoid rework on SAP S/4HANA (relevant to, for example, customers who still need to finish major rollouts prior to converting to SAP S/4HANA)

Customers are supported by:• Descriptions of the changes in the Simplification List• Pre-checks to establish whether a customer is currently using the changed

solutions or technologies • Custom Code Migration Worklist content to support the customer in adapting

custom code for use with SAP S/4HANA, where required.• Tools and guidelines on handling the necessary adaptations related to these

changes, for example, reports for automatically migrating data to the new data model during the system conversion

~16%

~59%

~25%

Currently we have 290 Simplification List Items. They fall basically into three categories:

Note: Based on our current project experience in average 30-40 Simplification Items are finally relevant for a dedicated customer

Change of existing functionality: 16%• Example: Simplifications of Data Structure (for

example in Sales & Distribution)

Functionality not available within SAP S/4HANA: 59% functional equivalent in most of the cases available• Example: FI-AR-CR Credit Management

Not the target architecture: 25% functionality still available • Example: Warehouse Management (WM)

SAP S/4HANASystem Conversion – Simplification List

http://help.sap.com/saphelp_nw75/helpdata/en/0b/b83ef76fbf46c89fd9fa5f3af8c0c6/frameset.htm




SAP S/4HANA Custom Code: Overview


Within the SAP S/4HANA system conversion project you can distinguish between the following steps related to your custom code: • Step 1: Get Transparency on your custom code • Step 2: Remove waste • Step 3: Analyze the impact, and create a plan • Step 4: Do the required custom code changes

Custom Code Guide

Use of traditional custom-code related tooling and new tooling:• Custom Code Lifecycle Management • Usage and Procedure Logging (UPL) • SAP Code Inspector • ABAP Test Cockpit (ATC) • Custom Code Migration Worklist (new)




SAP Docu: LinkS4 SCN: Link

Simpl. DB

Custom Code Migration Worklist(incl. in SAP NW 7.50)

Custom Code Analyzer

SAP Service Marketplace

FileS/4 Custom Code Check Content

Download from SMP and import

Customers System Landscape

File

Custom Code Extract

Create CC extract file and import

Custom Code Analysis Result SAP Notes for the different application specific adaptions

SAP Note

SAP Note

SAP Note

SAP S/4HANA Custom Code: Custom Code Migration Worklist

http://help.sap.com/saphelp_nw75/helpdata/en/0b/b83ef76fbf46c89fd9fa5f3af8c0c6/content.htm?frameset=/en/0b/b83ef76fbf46c89fd9fa5f3af8c0c6/frameset.htm&current_toc=/en/d1/802cfc454211d189710000e8322d00/plain.htm&node_id=5&show_children=false



PREPARE: Custom Code Migration Worklist


• To reduce and prioritize the work list use theUPL data collected in Solution Manager

PREPARE: Custom Code Migration Worklist







Q & A



SAP S/4HANAMore Information

Joint the SAP S/4HANA Community

SAP S/4HANA, cloud edition trial Detailed SAP S/4HANA road map: SAP Service Marketplace

How to get there … S/4HANA Cookbook

SAP S/4HANA, on-premise edition trial

Discover SAP S/4HANA

SAP Help: SAP S/4HANA, on-premise edition 1511

S/4HANA SCN: System Conversion

http://discover.sap.com/S4HANA

https://www.sap.com/cmp/dg/crm-s4hana/index.html

http://scn.sap.com/community/s4hana/

http://go.sap.com/cmp/oth/crm-s4hana/s4hana-on-premise.html

https://websmp101.sap-ag.de/~form/handler?_APP=00200682500000002672&_EVENT=DISPLAY&_SCENARIO=01100035870000000122&_HIER_KEY=501100035870000019823&_HIER_KEY=601100035870000248628&_HIER_KEY=601100035870000250174&


http://help.sap.com/s4hana








Q & A

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Thank you

Contact information:

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