1. Building the business case for
SAP S/4 HANA
John Appleby
GM, Bluefin Solutions Inc.
Carl Dubler
Product Marketing Director, SAP
2. • S/4HANA Introduction
Differences between Suite on HANA and S/4HANA
Deployment Options
• The S/4HANA Roadmap
Migration planning
Example migration schedule
• The S/4HANA Business Case
Components of a good business case
Business benefits
Example business scenarios
What you will learn today
2
4. • The successor to SAP R/3 and SAP Business Suite
• New SKU and Code Fork
Available on the SAP HANA database
• S/4HANA themes:
Renewed interface with Fiori UX
Simplified structure with SAP HANA
Cloud deployment first
What is S/4HANA?
4
5. Runs on AnyDB
Built for lowest
capability
database
Limited use of
database
functionality
Client/Server
SAPGui User
Interface
SAP R/3
SAP HANA only
Built using all
capabilities of
SAP HANA
Full use of
database
functionality e.g.
geospatial, graph
Fiori User
Experience
SAP
S/4HANA
SAP R/3 vs S/4HANA
5
6. S/4HANA Deployment Options
6
Cloud
• Shared HANA multi-tenant DB
• HANA Cloud Platform
Extensions
• Quarterly Release Schedule
• 100% Managed by SAP
• Automatic Updates
On-Premise
• On-Premise or Hosted
• ABAP Customization
• Yearly Release Schedule
• Managed by Customer/Partner
• Update schedule defined by
customer
10. • S/4HANA roadmap varies
• Existing ECC Environment
Upgrades, Patches, Unicode Conversion
Test Management, Change Management
Custom Code Remediation & Reduction
Data Reduction & Near-line Storage
• Build of technical readiness
Hardware Procurement
SAP BW or Agile Datamart
The S/4HANA Roadmap
10
11. The S/4HANA Roadmap
Custom Code Remediation
BW Near-Line Store
2015 2016
Suite on HANA
Solution Manager
HW Procurement
Roadmap
Cloud Migration
BW Housekeeping
ECC Housekeeping
Year End
SAP BW on HANA
S/4HANA
Sandboxes
Real-Time Analytics
Test Management
13. Components of a business case
• Better Business
Engagement
• Improved Morale
• Customer
Satisfaction
• Reduction in Days
Outstanding
• Reduction in batch
schedule
• Reduction in Stock
• Reduction in
Hardware Cost
• Reduction in Project
Costs
1.
Financial
2.
Quantifiable
3.
Measurable
4.
Observable
1
3Tip: try to move benefits from Observable Measurable Quantifiable Financial
14. Quantifying benefits
• Compare against
similar companies
• SAP Value
Engineering
• Services
organizations provide
simulation using your
business conditions
• Validate based on
experience of others
• Relatively
inexpensive
• Verify capabilities
• Solidify Business
Case
Pilot / PoC
Reference
Sites
BenchmarkingSimulation
1
4Remember: try to move benefits from Observable Measurable Quantifiable Financial
15. Business benefits matrix
Doing new things Doing things better Stop doing things
Financial
• Reduction in annual maintenance costs of hardware
and infrastructure
• One time reduction in stock
• Increase total shopping cart size and value
• Reduced overtime due to less integration pressures
• DBA Tasks
Quantifiable
• Reduced project costs
• Reduction in SLA misses for data availability
Measurable
• Increased adoption
• Shorter development time due to simplification of the
architecture
• Simplification of the solution stack
as BWA Blades removed
Observable
• Mix non-SAP and SAP data into
one data model in real-time
• Ability to navigate from company
level to document level in one
report
• 30x Improved average query time leads to faster and
better decision making and support
1
5
16. Where to add capabilities and value
• Finance soft close
• Planning and predictive finance
• Marketing to audience of one
• Material Requirements Planning (MRP)
• Advanced Available to Promise (ATP)
• High-volume inventory backflush
• Engage talent across the organization
• HR compliance across the organization
• Continuous cross-system control monitoring
• Fraud detection
16
17. Top
capabilities
Unique value of
SAP S/4HANA
Business
innovations
Solutions
Quantifiable
value
Use case
Example: finance soft close
Description: A traditional measurement of the finance organization is the speed at which a company closes its books. In
benchmarking studies, SAP Value Engineering found that the top quartile–performing companies achieve the annual
financial close in 26% fewer days than their peers, resulting in 61% lower General Ledger and closing costs.
Industry relevance: Cross-industry
Drive one common view of financial data to help ensure enterprise-wide consistency to minimize reconciliation
Enable real-time processes for instant insight to make timely, relevant decisions
Use prediction, simulation, and analysis to evaluate financial implications of strategic business choices
Universal journal for both financial and controlling data
On-the-fly aggregation of transactional tables
Central finance to consolidate many back ends
SAP S/4HANA, on-premise edition
SAP S/4HANA, cloud edition
SAP Simple Finance solution
Real-time oversight of close progress
Real-time insight into financial results
Continuous intra-month processes
400 hours cut from period-end close
86% faster real-time analytics
2.5x faster cost postings
*
*SAP software implementation
18. Close
batches
Consolidation
batches
Initial period Close & consolidation
Reporting on-
demand
Close & consolidationInitial period
Business Process View: Finance soft close
With SAP S/4HANA:
Real-time KPIs
Elimination of end-of-period batch
Continuous intercompany reconciliation
Continuous financial reporting visibility
Line-item detail reconciliation
Automation for routine tasks
Full management visibility of close tasks
With traditional system:
Close activities don’t begin until period end
Multiple batch-run dependencies
Batch bottlenecks that delay downstream
High error-correction efforts
Complex issues postponed until after close
Time-pressured resolutions
Delayed visibility into reporting
Traditional system With SAP S/4HANA
Traditional With SAP S/4HANA
Process excellence
19. Business Scenario Recommendation Tool
• Easy and Free of Charge
Intuitively get recommendations for
business scenarios based on your system
and industry
• Efficient
You only spend minutes to request a
report
• Transparent
You’ll get a list of relevant business
scenarios and other recommendations
»Request a free report at www.s4hana.com
The complexity found in decision making, process execution, and IT architecture has a high cost. The illustration on this slide shows specific examples of complexity in finance, and what results.
Decision making: Finance has to wait for experts (usually in IT) to gather and prepare data to analyze. By the time this is done, the problems finance is trying to discover and diagnose have often become unmanageable.
Process execution: Today’s batch-oriented processes, like period-end close, not only suffer from the inherent latency of a batch operation, they also rely on manual reconciliation between finance and controlling systems. The result is that there is no time left in a period to check for errors or even simulate what would happen under different conditions, such as an acquisition, divestiture, or reorganization.
IT architecture: Because there has been little structural change in finance systems, IT must spend time to create interfaces and reporting layers to help bend the business into the predefined structure demanded by the system. As a result, businesses cannot really optimize the way they work. If they do reorganize, this creates even more of a burden on one-off interfaces or reporting structures to handle the differences.
All this complexity is not trivial. It eats into more than 10% of profits.