SAP Application migration to HANA Enterprise Cloud Journey Delek US Holdings Session ID# 3805

1. SAP Application migration to HANA Enterprise
Cloud – Journey
Danny Norris
Jyoti Kakarala
Ashley Dubler
Samer Kamal
Delek US Holdings
Session ID# 3805

2. Agenda
• Introductions
• Business Plan & IT strategies
• IT & Business case
• HEC Migration plan & execution
• Security, compliance & data protection
• Implementation challenges
• Lessons learned
• Closing
SAP MIGRATION FROM ON-PREMISE TO HEC

3. SPEAKERS
Danny Norris
VP, CAO
Delek US Holdings, Inc
Danny.Norris@delekus.com
 With Delek since 2006, Chief Accounting Officer
since 2013 responsible for Accounting, Tax, FP&A and SEC Reporting
 Over 25 years of experience in the Oil and Gas industry
 Certified Public Accountant and Member of American Institute of Certified
Public Accountants

4. SPEAKERS
Jyoti Kakarala
Director ERP & Refinery Systems
Delek US Holdings, Inc
Jyoti.Kakarala@delekus.com
 Strategic and Tactical Leader with 25+ years of experience
 Architect, plan & Implement innovative, scalable solutions supporting
dynamic business and marketing strategies
 Challenge the status Quo for continuous improvement
 Deliver innovative solutions that provide positive outcomes

5. SPEAKERS
Ashley Dubler
Director of Accounting & Controls
Delek US Holdings, Inc
Ashley.Dubler@delekus.com
 Oversees the company’s accounting polices, controls and close process
 Implemented and maintains various accounting systems (SAP, SAP GRC, BPC
& Blackline)
 Prior to joining Delek, worked in a large, international accounting firm

6. SPEAKERS
Samer Kamal
Architect
Delek US Holdings, Inc
Samer.Kamal@delekus.com
 Systems Architect – Basis, Security, Cloud Applications and Cloud integration
 Expertise with different technologies, SAP Cloud, HANA, SuccessFactors, Fiori,
HANA Live, GRC, Solution manager
 Hands-on experience with passion on serving the business what they need
before thy need it.

7. RETAIL
REFINING
Our refining segment operates 155,000 barrels
per day in combined production capacity at two
moderate complexity refineries in Tyler, Texas
and El Dorado, Arkansas. Own a non-controlling
equity interest of 48% of the outstanding shares
of Alon USA Energy, Inc.
LOGISTICS
The logistics segment gather, transport and
store crude oil and intermediate products and
market, distribute, transport and store refined
products primarily in select regions of the
southeastern United States and Texas
RETAIL
Our retail segment, MAPO Express, is one of the
25 Largest company operated convenience store
chains in the United States, and one of the
leading C-store operators in the Southeast. The
Company currently operates approximately 355
locations in seven states.
Corporate Overview

8. 8
Corporate Overview
Integrated Business Model
Flexible Crude Sourcing and Market Driven Production Enhance Performance
Flexible Crude
Oil Sourcing
Crude
Logistics
Refining
Product
Logistics
Retail
Locations
• Pipeline access to Midland; Gulf Coast; Cushing
• Increase Gathering – Texas and Arkansas
• Access to Canadian crude
• Crude oil pipelines supporting refineries
• 600 mile gathering system in Arkansas
• Rail access at El Dorado
• Trucking operations
• Currently 155,000 bpd crude throughput
• Crude slate flexibility
• 9 light product terminals
• Light product pipelines
• 355 locations
• Synergies with
logistics and refining

9. Delek US growth through the years
Delek US
2001
Mapco Express
Tyler
Refinery
2005
IPO 2006
Lion Oil Refinery
2011
IPO MLP 2012

10. Delek IT Strategy
 Modernize IT Platform and Applications to enable business
innovation
 Standardize best practices and guidelines for computing platforms,
services and information systems
 Secure Seamless access to users from any location, any device & at
any time
 Consolidate new business units into single ERP system quicker with
minimal disruption

11. Factors influencing Journey to SAP HANA Enterprise Cloud
End of life server lifecycle
Migration of Data center
Disaster recovery capability
Upgrade to EHP7
Managed Services
Rapid deployment of solutions
Simplification
Influencing Factors
Capex to Expense
Environment
SAP Hana Enterprise Cloud
Provide Scalability
Unicode Conversion
Designed and Built for Power
Fully Scalable and Secure
Driving Innovation and Growth

12. Cost:
• Significantly lower implementation costs, reduced hardware costs
• Reduced training and internal IT support costs
• License subscription costs treated as expense, migration of SAP license
Time to Value:
• Reduced timelines for solution deployment for HEC vs On-Premise
• Seamless, automatic, frequent and “free” upgrades (Patches)
Agility:
• No need for capacity & site planning i.e. quick response to changing needs
• Free-up key resources to focus on bottom line and increase business agility
Scalability & Performance:
• Utilize SAP in-memory computing (HANA) for higher performance
• Connectivity services enabling integration with SAP and non-SAP systems
• Scale up and back quickly, assign resources to “where the action is”
Innovation:
• Reduced costs and efforts for IT operations and higher agility of a
cloud-based IT Architecture frees up resources (time and money)
which can be invested in maximizing Innovation
IT & Business Case

13. Business Benefits:
• Speed of data analysis ( can crunch millions of BSEG in secs )
• Long running reports run much faster after migration
• Increased data visibility supports effort for faster period closing
• Key insights into business by data segmentation & analysis
• Foundation for future business initiatives, such as merger &
acquisitions etc.
Technology Benefits:
• Simplifies reporting platform ( HANA live, Embedded BW )
• Combines real time OLTP and OLAP
• Single source for ERP & Analysis reports reducing data duplication
• Reduced complexity & management of network, security & systems
internally
IT & Business Case

14. HEC Service Model
Hardware component including setup
Infrastructure Maintenance
Provisioning of data center facility
Operating system Maintenance
SAP HANA DB Management
SAP Application Basis Support
Functional Application Support
Application evolution and change management
HEC Manages
Cloud and Managed services for HEC
Delek Manages
Delek Support Team

15. Unicode Conversion, Upgrade and Migration
Assessment
Server
Provisioning
System Import
Unicode
conversion,
Upgrade and
OS/DB
migration
Integration &
UAT
DMO
Execution
Hyper care
Transition to
AMS Support
Cutover
Activities
TAO
Automation
Alerts &
Monitoring
Initiation Planning Execution Support
Optimization

16. Unicode Conversion, Upgrade and Migration
1
2
3
Prepare
Unicode Checks
Database Migration
Option ( DMO )
4
5
6
Data Export
System Setup in HEC
Delek Post-Processing
Delek SAP ERP Project Landscape on premise
Delek SAP ERP Project Landscape on HEC
Sandbox Quality Production
Sandbox
ECC 6 Ehp 7
Unicode
HANA DB
SUSE Enterprise Linux
Development
ECC 6 Ehp 5
Non-Unicode
Microsoft Sql Server 2008
Windows Server
ECC 6 Ehp 5
Non-Unicode
Microsoft Sql Server 2008
Windows Server
ECC 6 Ehp 5
Non-Unicode
Microsoft Sql Server 2008
Windows Server
Development
ECC 6 Ehp 7
Unicode
HANA DB
SUSE Enterprise Linux
Quality
ECC 6 Ehp 7
Unicode
HANA DB
SUSE Enterprise Linux
Production
ECC 6 Ehp 7
Unicode
HANA DB
SUSE Enterprise Linux
ECC 6 Ehp 5
Non-Unicode
Microsoft Sql Server 2008
Windows Server
Uptime
Downtime

17. Unicode Conversion, Upgrade and Migration
High-Level Schedule for Onboarding & Migration

18. Role of the Business Partner
Planning:
• Include all stakeholders and assign business owners to each area
• Help identify all connections to current environment
• Choose a downtime for cutover
• Communicate progress
Testing:
• Ensure connections valid for data flow work
• Perform a “day in the life”
• Sandbox, Development, and Quality
Validating:
• “Snapshot” of data prior to migration
• Tie-out of data after migration

19. Advanced IT Security
Architecture
Isolated landscape per customer
Security hardened systems
Network Security
Network Admission protocols
Intrusion prevention systems
Network filtering, proxies
2-factor authentication
Secure operations / internal
control framework
Asset Management
Change Management
Incident Management
Antivirus & Malware Mgmt.
Backup & Restore Management
Identity Access Management
Customer Data Flow Control
Regional data storage
HEC Compliance monitor
Threat and vulnerability
Management
Security Patch management
Penetration
24 X 7 Security Monitoring
Physical Security
Video and sensor surveillance
Access Logging
Security guards
Fire detection & extinguishing
Uninterruptible power supply
Biometric access control in
certain locations
HEC Security Compliance
Security, Compliance and
Data Protection
Certifications of compliance
SOC1
SOC2

20. Examples of Controls Unchanged:
• SAP GRC User and Role
Provisioning
• SAP GRC Access Review
• FFID log Review
• Transport Approvals
• Password Parameters
Examples of New Controls:
• SAP Help Access
• Change Management
• SOC 1 and SOC 2 Review
• User Considerations
• Direct Database Access
Impact on SOX

21. SAP ERP
SAP BW
SAP GRC
Fiori
SAP Bobj
SAP Solman
SAP PI
Refinery SystemsRetail Systems
Pipeline Solutions
Delek Corporate On-Premise Data Center
Network
Storage
SAP Retail
Delek SAP Landscape Before HEC migration

22. SAP BW
SAP GRC
SAP Bobj
SAP Solman
SAP PI
Network Storage
SAP ERPFiori Network
Storage
SAP ERPFiori
Network
Storage
HEC – Delek Private Cloud HEC – Delek Private Cloud
VPN/ MPLS VPN/ MPLS
Primary Disaster Recovery Site
Delek SAP Landscape After HEC migration
Bobj
HEC Network HEC Network
Bobj
* Production Systems only
Retail Systems
SAP Retail
Delek Corporate On-Premise Data Center
Refinery Systems
Pipeline Solutions
Embedded BW
Embedded
BW
Sandbox, Dev, Quality & Production
Environments

23. Project Challenges and Lesson learned
 Business Challenges
• Certain functionality changed significantly from Ehp5 to Ehp7
 PMO Challenges
• Several diverse teams on SAP side to interact and coordinate
• No central authority over all these teams
• HEC activity is driven by ticketing process & difficult to get dedicated resources
 Infrastructure Challenges
• Network Extension Challenges
• Manage and maintain DNS across both networks
• Plan for FTP and SFTP requirements early
• Ensure accommodation for DR site in hostnames
• Operating System
• Migrate from Windows to Linux
• File and folder permissions vary
• Cross mount NFS vs migrate
• Review file paths in job variants
• Load Balancer & Web Dispatcher signed certificates

24. Project Challenges and Lesson learned
• Technical Challenges
• Unicode Remediation
• Identify the programs used in last 365 days for
critical path
• SAPGUI
• Upgrade to 7.4
• Ensure the SAPGUI updates to remote users
• Personal lists needed to be rebuilt after the
upgrade
• Small Delek project team, long hours & short timeline
• QA automation with TAO & Solution Manager

25.  Be prepared for software bugs and be prepared to apply
notes, patches and service packs
 Provide clear message to project team on project vision,
scope and critical path so that the whole team is focusing on
the final goal
 Promote the project across other teams and departments and
make sure all the stakeholders are on board with the project
 Have a good change management plan and execute it
accordingly
Key Learning Points

26. 26
CLOSING
Innovative
Solutions
IT platform for
business
opportunities
Support dynamic
business
Agile
Implementations

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