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Building the Business Case for SAP S/4HANA

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Building the business case for
SAP S/4 HANA
John Appleby
GM, Bluefin Solutions Inc.
Carl Dubler
Product Marketing Director, SAP
• 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
S/4HANA Introduction
• 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
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
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

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Building the Business Case for SAP S/4HANA

  • 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
  • 8. SAP S/4HANA Customer Journey 8 http://www.sap.com/bin/sapcom/en_us/downloadasset.2015-03-mar-02-23.sap-s-4hana-frequently-asked-questions-pdf.bypassReg.html
  • 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

Editor's Notes

  1. 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.