SAP's Digital Transformation Strategy and the Rise of Business Value Networks
1. Business Value Networks (BVN) for
SAP HANA & The Digital Economy
www.utilicast.com
www.businessvaluenetwork.org
2. SAP is Responding to the Accelerated “Digitization of The
Economy” With a Completely New Suite of Products
• SAP has recognized that their current platform will not meet the needs of the
“digital economy”.
• In response in early 2015 SAP unveiled the S/4 HANA platform business suite,
HANA Cloud Platform, IOT Services & SAP Business Network.
• SAP HANA is an entirely re-architected platform, promises to offer SAP
customers a foundation from which to transition themselves into truly digital
companies.
• The 2015 unveiling of the S/4 HANA business suite is the most significant
announcement made by SAP since the unveiling of the R/3 ERP package in 1992
• Because SAP is used by 80% of the fortune 500 companies this is a significant
event for the world-wide business economy as a whole, and an important pivot
point for SAP customers
3. Why is the Digital Economy & S/4 HANA important?
50B internet connected devices by 2020
Cyber Physical Systems / Robotics
Internet of Things / Product Innovation
Internet of Services
Smart Supply Chain / Factory
Cloud
Mass Customization / Innovation
Reduced Costs
Business Networks versus Monoliths
Blurring of industry lines (Uber, Apple)
Legacy ERP cannot meet future needs
SAP ERP platform will sunset in 2025
SAP S/4 Hana can address key elements of
business driver challenges
IOT, Business
Networks &
Integration
“Rapid
Industry
Evolution”
“Aging ERP
Systems”
Digital Economy DriversTrends Implications
Tech. Status Quo Not Viable
SAP-based strategy likely Most Realistic &
Mandated
Business Model Changing Rapidly
Flexibility & Simplicity Key Factors
Much More Integration
Change in Technology Paradigm / Platform
4th Industrial Revolution is happening Now!
Moving away from SAP ERP as High Risk / Complex
Too Complex for a “Bolt On” Strategy
What are the compelling digital economy drivers for an existing SAP customer?
4. SAP’s Strategy is directly influenced by a blueprint for
the digital economy called “industry 4.0”
•Broadening of
process integration
to include, human,
computational and
physical components
•Integration of 25
Billion internet
connected devices
into the global
economy
•Emergence of
internet based B2B
networks as a key
economic driver in
all industries
•New productivity
boom for core
business functions
based on simpler
real time processes
Smart
Operations
Internet of
Services
Cyber
Physical
Systems
IOT
5. SAP’s Legacy Suite Does Not Support The Digital
Economy Blueprint
• Current platform is not
focused on integration
outside of the
organization
• Current platform does
not easily support IOT
• Current platform is not
integrated with B2B
networks and focused
on internal processes
• Current SAP platform is
complex, slow to
change, has many batch
components and is not
easy to use
S/4 “Run
Simple”
SAP
Business
Networks
HANA
Cloud
Platform
SAP
IOT
Services
6. In Contrast SAP’s HANA Based Platform Is Architected
From the “Ground Up” For The Digital Economy
• Broadening of process
integration to include,
human, computational
and physical
components
• Integration of 25 Billion
internet connected
devices into the global
economy
• Emergence of B2B
networks integrated into
SAP ecosystem
• Ariba
• Fieldglass
• Concur etc..
• Simpler and more
efficient and flexible real
time processes for
business and IT
S/4 “Run
Simple”
SAP
Business
Networks
HANA
Cloud
Platform
SAP
IOT
Services
7. What Does the new SAP HANA S/4 platform & Digital
Economy mean for your business?
• Are you an existing SAP customer?
• Are you adequately aware of the major developments with the SAP HANA platform
and the digital economy?
• Have you explored what the SAP HANA platform and the digital economy could mean
for your business?
• Do you urgently need an unbiased “point of view” regarding SAP HANA and the
implications and potential impacts for your company and your industry of the digital
economy?
• EFT is your best partner in the marketplace for developing an objective viewpoint on
what SAP HANA really means for your business based on
• Unique Business Value Network (BVN) methodology developed for SAP HANA &
the Digital Economy
• EFT’s unique “restructuring and big bet initiative” heritage
• Our unique local professionals seasoned in
• Operator experience in your industry
• CIO advisory for fortune 500 companies
• “Big Bet Initiative” delivery & IT Transformation
8. Where to begin your journey?
Given the transformative potential of the digital economy and SAP HANA for all industries, every major
company using SAP needs to urgently assess the implications for their business of the digital economy and how
SAP can enable it.
8
Understanding
Current State
HANA Impacts
ROI Strategy
Options
Decision
Priorities
BVN Future State
BVN Architecture
Investment Strategy
Action
BVN Roadmap
Mobilization
Capabilities
Execution
Awareness
HANA S/4
IOT Services
HANA Platform
Digital Economy
9. Example Business Value Network Roadmap
In line with the business strategy,
Evolve
Business
Practices
Evolve IT
Infrastructure
Evolve
Organization
HANA Platform
Foundation
Initial Business Suite
On HANA Platform
Integrate IOT,
Continue Business
Suite Migration
On HANA Platform
Integrate Partners,
Integrate IOT,
Custom Apps,
Finish Migration
On HANA Platform
Strategic Approach
Real Time
Apps & IOT
Real Time
Applications
Real Time
Analytics
Real Time
Apps, IOT &
B2B
EfficientFunctionServiceOrientedDynamicNetwork
Intelligence Process Flexibility Innovation Evolution
CorePlatformApplicationsDevicesPartners
Tactical Approach
11. Business Value Network Overview
• The Business Value Network Movement is an
experiment in building the philisophical and
methodological basis of real world value networks
utilizing the SAP S/4 HANA Platform.
• Value Networks are the business networks which will
make up the “internet of services” which is a
foundational component of Industry 4.0 and a key
element of SAP’s HANA Platform strategy.
• The business value network organization is all about
sharing the “know how” on building the value
networks that make up the “internet of services”
utilizing the breakthrough technology of SAP.
12. Approach
Our approach has four components
1. A book that outlines the key philisophical elements of
value networks
2. A methodology that the community can use to build
value networks using the SAP HANA platform
3. Business value network projects both past and
present that the community can participate in and
learn from
4. A vibrant community of business value network
professionals and enthusiasts who want to be a part
of this revolution
13. What is the SAP HANA platform?
Originally released in 2010, a ‘reinvented’ database solution that underpins the go-forward
SAP offering
• SAP HANA is an architecture for analytical solutions built by SAP, with a primary focus
of providing real-time insight into oper. data. Designed to handle both high transaction
rate and complex query processing on the same platform
• A next-generation database technology, which runs in main memory (‘in-memory’)and
processes information extremely fast. It’s so fast that it does not need a separate
operational analytics system or data warehouse.
• SAP HANA is the platform for all of SAP’s innovation. Because it is so fast, it is no longer
necessary to hold all of the duplicate data in a transactional system including
calculations like percentages, totals, indexes and aggregates. This leads to a much
smaller data footprint and dramatically faster processing.
BENEFITS
• Real time reporting and business applications
• New and enhanced data analytics capabilities
• Simplified architecture
• Data center & operations enhancements
• Platform integration and openness
• Reduced database size & related storage costs
• Expanded cloud capabilities
14. WHAT is S/4 HANA?
The recently announced SAP software package runs exclusively on the HANA platform solution
• SAP S/4HANA is a replacement to the SAP R/3 or Business Suite platforms that have been
in place in many global businesses since the release of SAP R/3 in 1992
• SAP S/4HANA defines SAP’s software strategy and innovation for the next 10 years, as the
company is rewriting the software layer to take advantage of the tremendous performance
of SAP HANA
• S/4HANA will only run on SAP’s HANA platform, and it will not run on any other platform.
This is extremely significant because previously, all SAP products were designed to run on
any database platform, including those from Oracle, Microsoft and IBM
• SAP plans to support its existing Business Suite through 2025, at which point it will sunset
related support
• S/4 HANA is a bundled appliance (hardware and software packaged together) that is itself
an IoT (Internet of Things) device. As part of a broader system, it has the potential to
become an information processing hub within the IoT and a powerful lynchpin for its
expansion
• Beyond an ‘ERP upgrade’ S/4 HANA offers strategic opportunity to fundamentally
transform architecturally
15. WHAT is S/4 HANA?
• Next generation business suite built on an in-memory platform and modern design principles;
delivers simplifications and innovations geared to help businesses grow in the digital economy
SAP S/4 HANA
On-Premise Cloud
SAP Fiori UX
role-based user experience for all devices
SAP S/4 HANA Extensions and Applications
applications for lines of business and industries
SAP HANA Platform
in-memory platform for all data
Ariba | Concur | Fieldglass | hybris | SuccessFactors
Native integration for hybrid
People
Devices
Business
Networks
Big Data
Social
Networks
Internet of
Things
Reference: SAP S/4 HANA FAQ, May 2015 v4
16. 16
SAP vision - One platform for the “Connected” enterprise
• Advanced capabilities and new user experiences to connect formerly disparate business
processes and siloed applications into a coherent, holistic enterprise
In-Memory DB App Server Web Server
Internet of Things (IOT), Mobile, Desktop
etc.
SAP Appliance
17. 17
Companies require an experienced and independent advisors
to advise on such a COMPLEX MIGRATION
• SAP’s lauch of S/4 HANA, requires its clients to migrate the existing ERP applications to this new S/4
HANA platform (or some non SAP alternative) within the next 5 – 12 years, as SAP will stop the
maintenance of its old ERP platform in 2025
• We have developed a digital economy methodology called Business Value Networks that can help
you define a blueprint and roadmap for your digital economy transformation using SAP HANA.
• Senior leaders: Our senior leaders, many of whom are ex-CIOs, bring deep insight into the
opportunities and challenges faced by businesses with practical approaches that work versus
theoretical approaches that don’t
• Business Focus: We combine this extensive business experience with a fact-based approach to get
to the heart of the issues quickly and then take a hands-on approach to execution
• Objective and independent: We have a valuable independent perspective with an unbiased
understanding of the various parties and roles of the SAP ecosystem (e.g. system integrator,
outsourcing/ hosting partners, hardware vendors)
• Action and results oriented: Our heritage is restructuring and managing distressed projects. Our
clients frequently comment that we drive change and rapid results where internal teams and other
consultants have failed