simplefinance saprunssap 20141106 141106103723 conversion gate01

SAP Runs SAP - Financials Bernhard Luecke

November 2014

2014 SAP SE or an SAP affiliate company. All rights reserved. 2 Public

Agenda

Simple Financials @ SAP our Journey

Business Benefits

Your Journey to Simple Financials

Simple Financials @ SAP -

Our Journey


SAP Global IT Today a Key Driver for Innovation

World class business solutions and infrastructure services

Global, single-instance business systems

Global shared services on ERP, CRM, HCM, SRM

Hybrid Cloud: e.g. CRM on HANA + Cloud for Customer

SuccessFactors + On-premise HCM with 53 country payrolls

> 3 million users on SAP Community Network

Global Scale: 70 countries, 251 locations

MaxAttention (premium support) customer

Powering SAPs transformation

Thought leader for IT-driven innovation and best practices

Always SAPs first ramp-up customer; SAP Runs SAP

Co-Innovation for in-Memory Technology and Mobile Business Solutions


Facts and Figures

SAP as a Service Provider - Technical Financials Framework

Main Systems

ERP (one client), CRM, HR, BI

ERP: 525 company codes (262 active), 77 countries, 1,9 Mio customers,

395.000 vendors, one controlling area and one operating concern

Financials Applications

General Ledger, Financials, Real-Estate, Treasury ,

Consolidation, Controlling, Planning & Consolidation, Reporting

Data Volume FI (Fiscal year 2013) Data Volume CO (Fiscal year 2013)

~ 6,3 Mio Document Header ~ 90 Mio CO Line Items

~ 25 Mio FI Line Items ~ 5,8 Mio CO Totals

~ 129.000 FI Totals ~ 30.000 active Profit Centers

~ 175.00 FI Totals ~ 21 Mio Profitability Segments

~ 27 Mio entries for IndexTables

* no longer used with SAP Simple Finance

Processes

Quote to close

Order management

Invoicing

Travel & expense

management

Record-to-close

Purchasing

Controlling


SAP Runs SAP First and best reference customer

SAP JAM Corporate-wide standard

Cloud for People

67,000+ users on

SuccessMap

Cloud for Customer

Integrated with

on-premise CRM

ARIBA

Top 3,300 Supplier

via Business Network

Cloud for T&E

Main markets live,

Rollout in process

Public Cloud No capital investment

Cost effective

SLAs, predictable,

reliable

Pay-as-you-go

Powered by SAP HANA Enterprise Cloud (HEC)

ERP on HANA with SAP Simple Finance

67,000+ users

ERP for all core Financial

processes

Implementation in 5 months

BW on HANA

4,500+ users

SAPs Financial Reporting


Private Cloud Dedicated environment

Control of data location

Security and control

Elastic and flexible

Full Cloud HCM

transition in process

CRM on HANA

15,000+ users

All Marketing, Sales, Services,

Finance etc.

Implementation in 2.5 months


SAP Business Suite powered

by SAP HANA, SAP NetWeaver BW

(2013)

SAP Business Suite

SAP HANA as

side-by-side scenario

(2012)

Simple Finance

(April 2014)

Real time Sales pipeline reporting

Profitability analysis and Profit center

accounting reporting real time

Receivables Manager

Business Planning and

Consolidation application integrated

to SAP NetWeaver BW

Change of currency evaluation for

constant currency calculation to

document currency

Usage of BW Workspaces

SAP Fraud Management

ERP & CRM on HANA

Environmental Resource

Management

Working Capital Management

Invoice and Goods Receipt

Reconciliation

Receivables Manager & Financial

Fact Sheet

Type Ahead Search / Fuzzy Search

Integration of legal & internal

management views on line item level

No more aggregates / indices in FI &

CO

Fiori

SAPs Internal Platform Adoption Roadmap

Any DB

SAP

ERP

SAP HANA

(*) Financials Add-On for SAP Business Suite powered by SAP HANA

SAP ERP

SAP HANA

Fin Add-

On (*)

SAP ERP

SAP HANA

SAP

CRM

SAP HANA

SAP BW

SAP HANA




(2013)

SAP Business Suite

SAP HANA as


(2012)




Receivables Manager



to SAP NetWeaver BW



document currency



ERP & CRM on HANA

Cash and Liquidity Management


Management



Reconciliation


Fact Sheet



Any DB

SAP

ERP

SAP HANA

Simple Finance

(April 2014)




CO

Fiori


SAP ERP

SAP HANA

Fin Add-

On (*)

SAP ERP

SAP HANA

SAP

CRM

SAP HANA

SAP BW

SAP HANA


SAPs Internal ERP on HANA: Key Implementation Highlights

SAP ERP on HANA in less than 5 months Go Live August 21st, 2013

Business Highlights

First global Go Live of SAP ERP

on HANA

67.000 ERP user worldwide


Enables effective and close

collaboration between all business

areas

Technical Highlights

Significantly faster database request

time of single processes

Data volume reduced from 7.1 TB to

3.7TB, down to 1.8 TB in HANA

More than 3.000 unused custom

code objects retired

HANA import runtime reduced by

~40 hours


Simple Finance

(April 2014)




CO

Fiori



SAP ERP

SAP HANA

Fin Add-

On (*)

SAP Business Suite

SAP HANA as


(2012)




Receivables Manager

Any DB

SAP

ERP

SAP HANA



(2013)



to SAP NetWeaver BW



document currency



ERP & CRM on HANA

Cash and Liquidity Management


Management



Reconciliation


Fact Sheet


SAP ERP

SAP HANA

SAP

CRM

SAP HANA

SAP BW

SAP HANA


August April

SAPs ERP journey @ a glance Simple Finance as driver for

excellence

2013

Move to HANA in 5 month

Main Technical Value

Data footprint reduction from 7,1

TB to 3,7 through rigid data

management

HANA database compression

from 3.7 TB to 1.8 (factor > 2,5)

Significant less storage space on

disk needed in comparison to

previous database system

New monitoring and analysis

features with HANA studio

Main Business Value

Fast close enablement - 28% of

processing time removed. New quality

through real time analysis &

continuous intercompany

reconciliation.

Simplified Receivables

management - removal of offline

backend processes & finance & Sales

working on unified record level. DSO

reduction of 10%

Risk & compliance - fraud detection

monitoring. Real time screening for

anomalies.

February April


August April

Summary: SAPs ERP journey @ a glance Simple Finance as

driver for excellence

2013

Move to HANA in 5 month


Data footprint reduction from 7,1

TB to 3,7 through rigid data

management

HANA database compression

from 3.7 TB to 1.8 (factor > 2,5)

Significant less storage space on

disk needed in comparison to

previous database system

New monitoring and analysis

features with HANA studio

Main Business Value

Fast close enablement - 28% of

processing time removed. New quality

through real time analysis &

continuous intercompany

reconciliation.

Simplified Receivables

management - removal of offline

backend processes & finance & Sales

working on unified record level. DSO

reduction of 10%

Risk & compliance - fraud detection

monitoring. Real time screening for

anomalies.

2014

Move to New GL & Simple Finance in 2 month


Huge simplification of code.

materialized aggregates all replaced

by SQL statements for aggregation on

the fly, database indices dropped

Dramatic data footprint reduction.

Final HANA database size targeted

~500 GB. Reduction in FI/CO from

234 to 106 GB (factor 2,2)

Performance gains through Scale

out: equal distribution of tables,

memory on master: 1,194 TB, on

slave: 0,654TB

Main Business Value

Business agility adopt to new

Business realities : reflection of

organizational changes on the fly (from

1 week to 1 day)

Financial Insights - integration of

legal & internal management views on

line item level

Inherent reconciliation -

reconciliation efforts eliminated by

operating against a single set of

granular data

User Experience

February April

Business Benefits Selected Examples

- Highly accelerated performance of usual business process

- User Experience increasing end user efficiency

- Changed business process based on realtime capabilities and adjusted user interface


HANA enables new business scenarios Profitability Analysis

> 26 h

Expected iteration (at least 4 times)

< 4 h

Profitability Analysis reduced from 26 hours to less than 4 hours even with more detail level

CO-PA Closing TWO days earlier!

Yesterday in the life of a Controller Today based on HANA


Business Value Receivables management

preparation

scheduled

alignment

follow-up

action

feedback

and close

period end

F&A/

backoffice

backoffice/

sales

sales /

customer

F&A/

backoffice

KPI

monitoring

follow up

action

F&A/

backoffice sales /

customer

Before

with Suite on HANA

Monthly preparation of critical receivable situation by

collections department

Scheduled alignment calls between collections department and

Sales to discuss late payment situations

Sales follows up with the customer based on offline information

(xls, print-outs, )

Sales provides feedback to the collections team via e-mail /

phone calls for the collections team to close the case

Real time data availability and increased performance allows

for continuous monitoring of the receivable situation

anywhere and anytime. Starting from high level KPI view

down to the individual line item.

The collections department and sales interact on individual

record, online and integrated in ERP

Sales can trigger actions directly updating the ERP record.

Instantly visible to the backoffice.

days sales

outstanding

(DSO)

by 10%*

KPI

* Target after

complete roll out for Finance & Sales


Business Value closing process event triggered automation

Before

enhanced with Simple Finance on HANA Access to real time data and improved performance enable the re-

design of mass data processes at month-end to be replaced with

event triggered execution e.g. :

Event triggered accruals (e.g. revenue recognition & software

deferral automation)

Software posting will be the event for maintenance invoicing and

accrual posting

Deal closing event will initiate commission process including accrual

posting

Full process transparency with clear accountabilities and alerts

allows Controlling to act on exceptions and anomalies as they occur.

Elimination

potential of

22% of as is

closing efforts

(business

case)

General

ledger

close

consoli-

dation

period

end reporting

ongoing

transactions

Monthly closing done for 173+ operative entities & branches with

an average of 100+ activities to perform per closing entity leads to

significant transaction volume at month end and time intensive

posting cycles for mass data processes (e.g. maintenance

spreading, order settlements, deferrals, accruals, assessments)

Significant effort for internal (non legal) booking to reflect special

ledger cases

Little transparency into local closing activities and their

dependencies due to scheduled batch processes.

KPI

batch

processing

General

ledger

close batch

processing

consoli-

dation

period end

aggregation

(BW) reporting

special

ledger

close


Business Value organizational change - reflection of organizational changes

Time to

implement

org changes

from 1 week

to 1 day Through real time availability and increased performance, the

impact of hierarchy changes on performance data can be simulated immediately (what if scenarios)

Master data can be flexibly enhanced with additional steering dimensions as needed, which allows for performance analysis based on multiple (concurrent) organizational views.

Updates to related accounting objects can be automatically applied upon finalization of the model, with the possibility of re-alignment of historical postings

Develop

ToBe model

udpated

reporting

Data

preparation

Impact

analysis

Finalization of

ToBe model

Update

transactions

Develop

ToBe model

Impact

analysis

Finalization of

ToBe model

Before

Analyzing the impact of upcoming organizational changes is very manual as reporting layers usually dont provide the necessary level of detail and required analysis dimensions.

Extraction and preparation of relevant data from source systems slows down reaction time and reduces focus on modeling and analysis.

Once the new organization model is finalized, batch processes need to be prepared to update transactional data.

In parallel, the reporting environment needs to be adjusted to reflect the new aggregation logic.

KPI

with Simple Finance on HANA


Business Value financial insights end-2-end analytical capabilities

Before

with Simple Finance on HANA

Today, legal accounting is separate from Management accounting (based on

profit center and Profit center hierarchies)

The two views can not be easily combined (e.g. Accounts Receivable does

not provide Information about Profit Center)

Management reporting is based on aggregates with a set of pre-defined joins

with no possibilities to further drill down, e.g. Information about DSO is

available on company code and LoB only, but cannot be broken down to a

specific area of responsibility (Profit Center).

Data structures are harmonized and integrated to form one logical

document across FICO (Accounts Receivable are combined with Profit

Center Information)

Reporting is based on line items (no aggregates), therefore, new reporting

requirements can be easily implemented based on new FICO joins/views

This allows to perform end-to-end analysis and define new responsibilities

in many areas. E.g.

Cash Management as integrated part of Business Steering (e.g. more

granular on DSO)

Tax optimization (e.g. I/CO agreements for management license,

management overhead etc.)

Optimizing Cash

and saving

costs Margin

increase of

1 ppt

Legal

accounting

Mgmt

accounting

aggregation

Operative

Mgmt

Reporting

Segment

Reporting

Legal

accounting

Mgmt

accounting

Operative

Mgmt

Reporting

Segment

Reporting

KPI


SAP Simple Finance @ SAP Major values realized

Account Receivables

Receivables Management

Books Closing

Fast Close Enablement

Intercompany reconciliation

Real-Time capabilities

Simple receivables

management through

integration of finance and

sales functions

10%

Shifted focus from data

preparation to analysis and

interpretation

Improvement on

processing time

Reduction in G/L

posting corrections

Intercompany reconciliation

moved to a real-time process

SAP HANA platform

No aggregates

Increased performance

Reduction in

time to

process

reconciliation

issues

Days sales

outstanding

reduction

28%

40% 70%


SAP runs SAP in Finance & Controlling Benefits and KPIs

Financial Close

On SAP HANA

86% faster

Real-time

analytics

91 % faster

67,000+ Users

74 % faster

Asset

Depreciation

Real-time

Revenue &

Profit and Loss

Reporting, Intercompany

reconciliation

420 Hours less

processing time

at quarter end

close

17% faster

Software and

Maintenance

Billing

42% faster

Automatic Cost

Accrual Postings

173+ Operative

entities and

branches

1,300+ Colleagues

involved in

closing activities

100+ Closing activities

every

month/entity (in

average)

8 day

Closing,

including group

consolidation

Automatic

Maintenance

Revenue Accruals

Search Type Ahead

Search / Fuzzy

Search
http://static.freepik.com/fotos-kostenlos/lupe_318-1787.jpg


System enablement and transformation Our Simple Finance Journey in 2014

October 2014

FIORI Smart Business

First scenario on improved transparency due to integrated FI/CO View

Enjoyable Finance transactions with FIORI transactional Apps

High value business insights with FIORI smart business

Easy to consume reporting

HANA Enterprise Search

November 2014

New functionality

First Dashboard available for easy to access Insights

Cash Management functionality trough FIORI Apps (transact./ analytical)

First Optimization of Processes with New GL & Simple Finance Funct.

Further improve transparency due to integrated FI/CO View

Further Memory Footprint reduction (Aging & Housekeeping)

Further Enjoyable Finance transactions wi/FIORI transactional Apps

2015+ beyond Further automate Finance Processes

Further Enjoyable Finance transactions w/FIORI transactional Apps

Dashboard available for easy to access Insights

Smarter Operations one document provides more business insights cross application

Increased flexibility and adaptability

New business insights with forward looking close

Smart landscape

April 2014 Simple Finance Foundation

Leverage Simple Finance to improve performance

Significant reduction of Data memory footprint

What is your journey to

Simple Finance?


What is SAP Simple Finance?

Transformative business value

from real-time analytics

enabled by HANA

New consumer-grade user

experience for all devices

provided by BI and Fiori

Easily consumable as a

managed service from the HANA

Enterprise Cloud

(or continued on-premise)

+ +

SIMPLE FINANCE IN A NUTSHELL

SAP Simple Finance is a non-disruptive evolution of SAPs unrivaled portfolio of global financial solutions based

on SAP HANA. It delivers instant insight anywhere for CFOs and Finance departments around the world to help

them transform their business in a rapidly changing world.

Flexible on-the-fly reporting enabling

interactive analysis and simulation of complex

business situations.

Personalized, responsive and simple

consumption of analytics, dashboards and

reports across devices.

Easy and flexible adoption of innovation based

on simple solution architecture with complete

choice of deployment.


SAP Simple Finance

Scope and Value

Business Suite on HANA

SAP HANA Platform

Aligned Single source of truth

Agile Real time processes

Predictive Dynamic planning and analysis

SAP Cash Management powered by SAP HANA

New product for

group cash management

SAP Accounting powered by SAP HANA

Alternative in-memory

functionality for ERP customers

Integrated

Business Planning

New capabilities and enhanced

integration for ERP and BPC.


SAP Simple Finance Non Functional Value Proposition

Data

Compression

Data

Throughput

Flexibility No

Reconciliation

Data are only stored once

(no totals and indices)

No replicated data =>

volume restricted to a minimum

Only one database table to be

updated => fast data throughput

Full Parallelization applied as

no data dependencies

(table locks)

Reconciliation build in

no aggregates

FICO Merge

(OneDocument)

Data only stored physically once

As consequence, adaptions or extensions

done only at one place.

No additional persistencies no data

migration or reconciliation


Taking Finance to the next level SAP live on SAP Simple Finance since April 2014

Business Stability on the one hand and Accounting Stability is no more a contradiction

Inherent Reconciliation Flexibility in Reporting

New applications and User Experience

Business Agility

Think about:

Merge of silos - no more bridging of

disconnected data silos

Reconciliation effort eliminated by

operating against a single set of

granular data

Think about:

Single source of truth with atomic

detail all data is kept only once and at

the finest detail

Pre-defined aggregates are replaced

with on the FLY analysis

Think about:

Acquisitions and re-organizations break

the continuity from past results to future

scenarios

This disruption is eliminated by running a

system of record on LINE ITEM level

without persistent aggregates

Immediate business value:

Seamless navigation from balance

sheet view into any dimensionality

Integrated view on external and

internal management reporting

Immediate business value

No more limitations in analytics

New views into ad hoc explorations

Immediate business value

Unlimited simulations - apply historic

data to new business context

Model the future based on actuals that

can be looked at any dimensions


Roadmap Workshop Agenda General (Structure)

Step 1

Overview

SAP Platform

Evaluate the

business value

Step 2

Discuss

migration &

deployment

Create a value

driven transition

roadmap

Onsite

Preparation

Questionnaire

Agenda details

Post

Processing

Summary

Next steps

Remote Remote

Out of scope Detailed steps of a system migration (can be discussed in a Migration Planning Workshop from SAP AGS).

Impact on the IT infrastructure and architecture (can be covered in a Technical Architecture Workshop from SAP AGS).

2014 SAP SE or an SAP affiliate company. All rights reserved.

Invitation to connect

Bernhard Luecke Director

[email protected]

www.linkedin.com/in/bernhardluecke
http://www.linkedin.com/in/bernhardluecke

Appendix


Cutover Process SoH

Trans-ports

Down Time for End Users

Point of no return

Timeline Friday Saturday Sunday Monday

Ramp down/ User Lock

Migration

Tuesday

Trans-ports

9am 9pm

Post-

Steps

Consistency

Checks

Up-grade

Safeguarding

Wednesday

3pm CEST

10pm

Spot

Checks

Full Ramp-up

Safeguarding

handover

3am

Controlled Ramp-up

Down Time for End Users Point of no

return

Ramp down/ User Lock

Migration Post-

Steps

Consistency

Checks

Up-grade

Safeguarding

Spot

Checks

Full Ramp-up

Safeguarding

handover

Controlled

Ramp-up

ERP@SAP

accelerated

cutover

option


April

Friday, 25 Saturday, 26 Sunday, 27

CET 04:00 08:00 12:00 16:00 20:00 00:00 04:00 08:00 12:00 16:00 20:00 00:00 04:00 08:00 12:00 16:00 20:00

ACTUAL

Ramp-

down, =6 hrs

New GL and Fin. Add-on Data Migration

17,5 hrs (including preparation, post steps,

4 hrs buffer released)

Data Validation

5 hrs (optimized

. execution)

Upgrade SRM, EhP7, sFIN , CEE SP22,

SPAU

12hrs 5:00

Long Term

Backup,

Restore ISB

5hrs 6:00

Biz Verify

6 hrs

IT

S

po

t

B

iz

S

po

t

15:00

17:00

NG

L+

Pre

p 2

:15

hrs

Data Migration

9:30 hrs Post Steps

5:45 hrs

22:30 9:30

Backup, Restore, Spau (bug w/ profile imports)

11,5 hrs

10:00

12:00

3:30

HA

NA

Re

v.

74

Backup+

Delta

Spau

~5 hrs

PLAN

Ramp-

down, ~6 hrs

New GL and Fin. Add-on Data Migration ~21,5 hrs

(including preparation, post steps, 4 hrs buffer)

Data

Validation ~11,5 hrs


SPAU

~16hrs 9:00

Long Term

Backup,

Restore ISB

~ 5hrs 6:00

6:30

Biz

Verify ~3hrs

.

I

T

Sp

ot

Biz

Sp

ot

20:30 17:00

19:00

3 h

rs

Bu

ffe

r

4 h

rs

Bu

ffe

r

2 h

rs

Bu

ffer

22:00

Implementation and Solution Simple Finance

Cut-Over Plan @ a glance

Uptime

New GL and Fin. Add-on Data Migration

17,5 hrs (including preparation, post steps,

4 hrs buffer released)

Data

Validation 5 hrs


SPAU

12hrs

New System Biz Verify

6 hrs

Ramp-

down, =6 hrs

Delta Replay of

recorded

productive data

1 day

Backup

5hrs

F

ina

l d

elt

a

rep

lay

Delt

a

m

igra

tio

n

T

ec

hn

ica

l

va

lid

ati

on

Sys

tem

sw

itc

h

1h 1h 1h 1h

Downtime (technical 4 hours)

System

Copy Data created during productive system operations is recorded

Analyze

original

data

NEAR ZERO DOWNTIME APPROACH


SAPs Internal CRM on HANA: Key Implementation Highlights

Migration to CRM on HANA

10 weeks for implementation

Big Bang Implementation (Global, all Lines of

Business)

Search performance 250x

65% additional database compression

Standard sales reports down from 5 min to 30 s

Complex reports down from 45 min to < 1 min

High availability and disaster recovery

Less than 5% of custom code adjustments

Connectivity to 20+ downstream systems

Solution Scope

Global single-instance for Marketing, Sales &

Inside Sales, Services, Support, Partner

Management, Finance and Data Management

15,000+ business users

Processes

Lead to Opportunity

Opportunity to Quote

Quote to Close

Interaction Center Management

Account Planning

Marketing & Campaign Planning

Territory Management

Single Sales Pipeline

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