This document summarizes the business case for migrating to SAP HANA and S/4HANA. It outlines limitations with the current Oracle database including limited compression and licensing costs. HANA offers improved performance of up to 100,000x and simplified licensing. Moving to HANA can reduce customization, operational costs, and TCO. A potential benefits analysis estimates $28.63M in annual benefits from increased efficiency in areas like procurement, sales, finance, and HR. The document recommends assessing the organization's readiness for HANA and developing a value realization plan to migrate key processes.

1. Business Case
for
SAP HANA , SAP S/4 HANA , BW on
HANA
Ajay Kumar Uppal

2. • Oracle 11
• Self-tuning database components,
• Sophisticated partitioning schemes calling for skilled resources,
• Limited data compression
• Licencing by number of cores rather than compute capacity. Core count can go up and down in line with demand.
• Even non-production environments have to be licenced
• Oracle 12c
• Oracle 12c is Columnar, compressed, high-speed, in-memory database to directly compete with SAP Hana is what is promised in the next release
of Oracle 12c database.
• Customer needs to purchase, integrate and manage a variety of Oracle products: 12c database, Exadata software and hardware, TimesTen
database, Oracle Clusterware, ASM etc.
• Licencing by core rather than compute capacity. Core count can go up and down in line with demand.
• Even non-production environments have to be licenced
• HANA – is the best bet and is the solution fit for future
• Enables new „real-time“ use cases for customers with up to x100000 performance boost and response times Best performance guarantee using
the appliance model
• Future SAP Business Suite optimized for HANA and all new functionality being built leveraging HANA.
• HANA appliance model reduces operational costs by simplifying classic datacenter layers (no separate efforts needed for server, operating system,
storage, network)
• Licensing by capacity as opposed number of cores and no licences for non-production environments
Way Forward – Oracle/RDBMS or HANA/In-Memory?

3. Moving to HANA can cut down customisation
Growth, Mergers and Acquisitions have created a custom code nightmare
70%
90%
12%
of the custom code objects have not been
used within the last 4 weeks
of the custom code objects are identical
or very similar to each other (clones)
60%
20%
of all custom code objects contain code
inspection messages
of the system resources are attributed to
the execution of custom code
of perceived functionality Gaps are
available in newer version of standard SAP
Increased risk of business
disruption
Unnecessary custom code increases TCO ($8k per
object and $500 annual maintenance per object)
Roadblocks for adoption of SAP innovation
Source: SAP Value Management Survey

4. SAP Suite On HANA
Business Benefits* $ 28.63 M
$ 14.61 M Conservative ANNUAL BENEFITS
Likely ANNUAL BENEFITS
Capital Spend
Effectiveness $ 3.60M
$ 1.90M
Value Driver (VD)
%
Improvement
Potential
Benefit
Reduce Discounts Lost from
Suppliers
2% - 3% $0.40 M - $0.60 M
Reduce Maverick Spend - Indirect
Materials
10% - 20% $0.50 M - $1.00 M
Reduce Maverick Spend - Services 10% - 20% $1.00 M - $2.00 M
Supply Chain
$ 1.71M
$ 0.92M
$ 10.89M
$ 5.45M
Value Driver (VD)
%
Improvement
Potential
Benefit
Increase Cross-sell / Up-sell
Effectiveness
5% - 10% $0.44 M - $0.88 M
Reduce Marketing Cost 0.01% - 0.02% $0.01 M - $0.01 M
Reduce Revenue Loss Due To Stock-
outs
0.01% - 0.02% $0.00 M - $0.00 M
Improve Sales Margin (Petroleum
Products)
0.005% - 0.01% $5.00 M - $10.00 M
Reduce Planning and Scheduling
Function Cost
1% - 2% $0.25 M - $0.50 M
Reduce Transportation Spend (for
O&G)
0.5% - 1% $0.50 M - $1.00 M
Reduce Storage Costs (for O&G)
2% - 3% $0.50 M - $0.75 M
Value Driver (VD)
%
Improvement
Potential
Benefit
Reduce Service and
Maintenance Costs
0.5% - 1% $0.50 M - $1.00 M
Reduce Un-Planned Downtime
Or Outages
3% - 5% $0.42 M - $0.71 M
$ 3.13M
$ 1.57M
Value Driver (VD)
%
Improvement
Potential
Benefit
Reduce Audit Cost 10% - 20% $0.50 M - $1.00 M
Reduce Days to Close Annual
Books
5% - 10% $1.07 M - $2.13 M
Reduce Days Sales Outstanding
(ONE TIME)
0.05% - 0.1% $1.61 M - $3.22 M
Finance
Operational Integrity
* Average Benefits from SAP Suite On Hana
$ 7.05M
$ 3.53M
Value Driver (VD)
%
Improvement
Potential
Benefit
Increase Employee Productivity 0.5% - 1% $3.53 M - $7.05 M
People & Talent
Conservative ONE TIME BENEFIT$ 1.61 M
PROVIDER & SAP will help you in building Business Case for HANA

5. SAP S/4HANA Innovation Analysis
• Interactive Presentation of Detailed Results enable fact-based Value Estimates
System Scan Analysis
Interactive
Report
Inter-
pretation
Business
Value
Rating of ERP on HANA
Scenarios
Bottleneck Map
Business
Case
Simulation
x. x.Supported by detailed data on Performance, Users,
Transactions, Programs, Tables etc.
Rating of SAP Fiori Apps

6. SAP HANA Business Case Customer InteractionBased on Customer Objectives, Actual System Usage and SAP Innovations
Confidential 6
Technical
Aspects
Functional
Aspects

7. SAP HANA Business Case Customer InteractionBased on Customer Objectives, Actual System Usage and SAP Innovations
Confidential 7
Technical
Aspects
Functional
Aspects

8. S/4HANA / SAP Fiori Potential by business process
Business Process per Application Area
Confidential 8
Summary about active processes
per application area
Number of active executables
differentiated by Fiori / SAPGUI
High level overview about
active processes
Detailed view including KPIs

9. S/4HANA DB Simplification – Impact Assessment
Considering used SAP standard as well as custom programs, views and appends
Confidential 9

10. S/4HANA Maturity Assessment
Identify usage of transactions which will be obsolete in S/4HANA to check migration effort
Confidential 10
Impact Analysis of S/4HANA
Simplifications on current business
processes
Detailed usage
information

11. Custom Code Assessment
Powered by smartShift
• Requires additional Scan ABAP in the same round of scanning
• Customer has to agree
Confidential 11

12. Data Aging
Identification of large tables with and without archiving objects and allows to evaluate
strategies for hot/cold storage
Confidential 12
Detailed information created
entries per month/year in last 5Y
Visualization of data aging as
Heatmap per SAP module

13. Various options
13
Purpose • Prepare for or decide on SAP S/4HANA,
SoH focus areas and transformation
• Assess maturity and quality of current
Application Management Processes
• Large analysis scope covering application
management and business processes
• Provides business process structure for upload
to SAP Solution Manager
• Business case simulations
• ERP on HANA scenarios rating
• SAP S/4HANA Best practice processes
• Performance aspects
• Bottleneck analysis
• Productivity improvements w/ SAP Fiori
• Covers all RICEFWs (reports (R), interface (I),
conversion (C), enhancements (E), forms (F)
and workflow (W),
• Usage of interfaces, batch jobs, workflows,
custom code,
• Information on user & time distribution of
usage
• Scorecards with exceptions & hints
• Action item list
• Business Process High Level Flow Charts
• Scorecards with exceptions & hints, detailed
data accessible
• KPIs based on industry best practices
• Includes majority of the application
management aspects too (RICEFWs, user,
custom code)
• Industry benchmarks
• Action item list
• Covers >50% standard SAP transactions vs. SAP
Solution Manager Solution Documentation
Assistant
• Includes mapping of custom code
• Includes process variances
• Can adjust to customer specific process
descriptions
• Customer documents can be included in
upload
Results • HANA-powered, interactive online tool
• Personal presentation (2 hours)
• RBE Plus Browser (local installation)
• Personal presentation (2 hours)
• RBE Plus Browser (local installation)
• Personal presentation (4 times 2 hours)
• 2 days Custom Code Assignment Workshop
• XML Upload file for SAP Solution Manager
Duration 2 weeks (Requires 1 scan only) 2 weeks (Requires 1 scan only) 4-10 weeks (Requires two scans) 4-10 weeks (Requires two scans)
SAP S/4HANA Innovation Analysis PROVIDER Solution Operation Analysis PROVIDER Usage Analysis SAP Solution Manager Integration

14. SAP S/4HANA Innovation Analysis
(ECC/CRM/SRM) Realization Steps
Confidential 14
Results
Interpretation
The results are
interpreted and
prepared by
PROVIDER, tailored
to the needs of the
Client
Step 4
Strategic Goal
Definition
Strategic goals are
defined and
selected amongst a
list from the
PROVIDER SSA
Questionnaire
Step 1
SCAN1 ABAP
Import
The SCAN1 ABAP
program is
imported and
executed in the
Client SAP
Production System.
Report is extracted
and uploaded to
the RBETM Portal
Step 2
Results Handover
Workshop
The Client is invited
to a two-hour
workshop to
present the results
of the S/4HANA
Innovation Analysis
and define value
realization
approach
Step 5
Value Realization
The defined
approach and steps
based on
PROVIDER’s
recommendations
are realized
Step 6
Results
Processing /
Analysis
S/4HANA
Innovation Analysis
is run on the
extracts and all
results are loaded
into a VPC for 3
months
Step 3

15. S/4HANA Innovation Analysis Results in less 4 weeks
Activity
Weeks
START 1 2 3 4
Strategic Goal Definition
Important prerequisite: ST03N workload monitor has to have at least three months of performance
data, and completion of the check list + questionnaire
SCAN1 ABAP Import and Execution
SCAN1 of productive system dependent on Release to Production time for the SCAN1 ABAPs and
their execution (HP can get engaged for this activity); Results: extract files provided to PROVIDER
Customer
Results Processing / Analysis
The extract is processed and packaged into the S/4HANA Innovation Analysis
PROVID
ER
Results Interpretation
Results are interpreted and collated in a PPT and initially aligned with the customer
PROVID
ER
Results Handover Workshop
Handover Results: 1 x 2hr workshop
PROVID
ER
Value Realization
The S/4HANA Innovation Analysis results are available for three months following the handover
Confidential 15
Customer and
PROVIDER

16. Calculating the Acceleration PotentialAssuming DB Read Time gets 10x faster:
Confidential 16
SAP HANA Time needed in % Example Z2SE Example ZF19
Before Response Time 100% 100%
DB Time 90% 81%
DB Read Time 89.6% 81%
After DB Read Time (10% of before) 8.96% 8.1%
DB Time 9.36% 8.2%
Response Time 19.36% 27.2%
Roughly how many times faster? 5 3.7%