Jeff's Journey gets cloudy

11
Jeff’s Journey gets cloudy
The role of SAP Cloud in Digital Business Transformation
www.ensead.com| info@ensead.com | +31 (0) 6 11 76 75 21
Mendel Koerts
Digital Architect for SAP at ENSEAD Advisory

2
Disclaimer
While every precaution has been taken in the preparation of this deck, ENSEAD Advisory assumes no
responsibility for errors or omissions, or for damages resulting from the use of the information contained
herein. The opinions expressed herein are subject to change without notice.
Trademarks
SAP® is a registered trademark of SAP AG, Germany. The use of general descriptive names, registered
names, trademarks, etc. in this publication does not imply, even in absence of a specific statement, that such
names are exempt from the relevant protective laws and regulations and therefore free for general use.
© 2017 – ENSEAD Advisory
MENDEL KOERTS is the author of Jeff’s Journey To A
Digital Business. He has specialized in Digital Strategy &
Architecture for SAP. Mendel joined EY Consulting in 1996
after graduating from both Business Administration and
Computing Science. He founded ENSEAD Advisory in 2011
and is proud to have Gartner Consulting as one of his
clients. Opinions expressed in this deck are strictly his own.

3© 2015 – ENSEAD Advisory
Jeff C. Brightlight
Divisional CIO
Fictious Ltd.

© 2015 – ENSEAD Advisory 4
4 – 6 April, 2016
Jeff is still jet-laggy, but one thing became more clear than ever…

4 – 6 April, 2016
2017 Topics Include:
• How Artificial Intelligence Will Change Your Business
• Creating New Business Models with Internet of Things
• Beyond Bitcoin: What Blockchain Means for the Rest of Us
• Virtual Reality Isn’t Just for Games Anymore
• How to Use Design Thinking to Unlock Customer-Focused
Innovation
… and that is that all of those topics above rely on the Cloud.
Which is good since that’s what you came here for!

Jeff’s colleague Charlie Longroad
presents on disruptive change

The team realizes the Digital Business's
first wave is now…

Watermanagement IoT voorbeeld
Charlie also went to a cool session on Digital Water Management
http://www.slideshare.net/tbroek/saphcp-iot-for-watermanagement

• Have van Hamburg
How to double port capacity with no more extra space?

Welcome to the Digital Wild West,
where opportunities come and go quickly, and winning or
losing has meaningful consequences for the business.

Jeff and team at least decide upon a
Proof of concept with SAP Cloud
12
Anton d’Entamico as an Enterprise Architect will
lead the SAP Cloud Proof of Concept

Source: the Guardian
‘Hey Jeff, extra meeting
with Bill VanDeBoard.
Tomorrow, 7:30 am…’
Some time
later…

• Innovaties allemaal gebaseerd op cloudtoepassingen, maar innovatie
is niet enige domein! Customer experience, new business, process
optimization
• Wat is de betekenis van ‘cloud’ voor de business?
• Cloud strategie: alles naar de cloud? Welke cloud? Wat is ‘alles’?
14
Good food, great company, splendid conversation… about Cloud…

Over a business diner, many aspects of the
Cloud are passed in review
15
Jeff is asked where Fictious is with cloud adoption and how they’ve arrived at where they are?

Jeff explains how the Fictious strategic
planning cycle drives a Project Portfolio
The IT Program & Project Portfolio at
Fictious is maintained:
• By annual top-down strategic planning
to (re-)align with business strategy, and
• By adding bottom-up input coming
from the operational level
16
Strategy
Execution
Planning
Selecting a cloud sourcing scenario is not a
binary decision. The mix includes
private cloud, managed or not, public
cloud, multi or single tenant, IaaS, PaaS,
SaaS, etc

Per business domain we evaluated and
selected the appropriate cloud service model
17
Jeff also explains IaaS, PaaS, and SaaS, based on Public Cloud. There’s AWS and GCP too!

Not always easy! Our decision tree for SAP BPC
Cloud sourcing scenarios looked like this…
BPC for
Microsoft
BPC for
NetWeaver
Public
Private
Public
Private
Any
Any other
As-Is
Any other
MS Azure
Amazon
MS Azure
Amazon
MS Azure
18
Amazon
x
x
As-Is
SAP HEC
SAP HEC
SAP Partner
SAP HEC
SAP HEC
RelDB IaaS
HANA IaaS
IaaS
IaaS
PaaS
HANA PaaS
HANA SaaS
RelDB IaaS
HANA IaaS
HANA PaaS
HANA SaaS
RelDB Paas SAP HEC
As-Is
SAP Partner
SAP Partner
Meeting w/ principles?
Two-tier scenario*
No managed ops.
Only w/ ‘back-up **
No BPC10NW
No BPC10NW
No BPC10NW
No BPC10NW
No managed ops.
No managed ops.
Small player
No BPC10NW
No BPC10NW
No BPC10NW
No BPC10NW
No BPC10NW
No BPC10NW
No BPC10NW
No BPC10NW
No BPC10NW
No BPC10NW
No BPC10NW
No BPC10NW
Supplier
PaaS
As-Is
* Public Paas for BPC10MS is a viable option if SAP service providers can be found that have built their service upon a Public Cloud IaaS such as MS Azure or Amazon
= Does not meet criteria at all
= Does partly meet criteria
= Meets criteria

Being Jeff has its advantages… the view from his bedroom.

Good morning Seff!
I assume you have seen
today’s newspaper…?

Thursday, 7 February, 2017

And you Seff, you need to come up with our
Digital Business Model next week. Capice?

Anton d’Entamico,
Enterprise Architect
“Talk to SAP…”
Charly Longroad
IT Strategist
“Remember Xavier?”
Patricia Portillo
IT Portfolio Manager
“Go to Eswelt Cloud event!”
Jeff consults his team, the Office of the CIO

Hazzo Plettau
Account Executive
“We have a superduper Z-SIMPLE solution for you but first upgrade Z/390 to T/5!”

25
…???...
ANTON!!
After that meeting Jeff was caught staring out the window for hours, rumor has it.

Overall Project Status ‘PoC SAP Cloud”
• Project Summary
– Project progressing as per the plan. Agile works.
– Well-balanced mix of internal and external resources
– Relevant findings for strategizing the Cloud
• Track Cloud alternatives
– Both Public and Private Cloud alternatives
• Track Central Finance
– Suite on HANA (SoH) with Simple Finance (sFin) 2.0
stable
– Final Sprint completed
• Track Sourcing & Procurement (S2P)
– S/4HANA 1511 with embedded SRM installed. Buggy
– Burndown rate better than expected
• Issues
– S/4HANA documentation says there’s no HCM
anymore in 1511. When checking the system it actually
is. Another PoC required e.g. for SFSF?
Overall Project
Status:
Project
Confidence:
Project Status
Project Timeline
Sprint Sprint Sprint SprintSprint Sprint Sprint Sprint
Kick off PoC Cloud alternatives
Central Finance PoC
PoC Sourcing & Procurement
26

Activities Performed
Track Status IaaS/Paas
– Private cloud provider selected - SAP HANA
Enterprise Cloud (HEC), Platform-as-a-Service
(PaaS)
– Public cloud provider selected - Amazon AWS.
Infrastructure-as-aServ ice (IaaS)
– Installation of 3 SAP HEC-based instances
completed:
• Suite on HANA (ECC6.07),
• sFin2.0 add-on
• NW GW w/ Fiori Front-End Server 2.0
• Series of financial Fiori apps
• SLT, DMIS, AIF3.0
– Amazon AWS-based installation completed (1
instance), sized at 50% of HEC
• S/4HANA 1511 SP1
• Embedded NW GW w/ Fiori Front-End
Server 2.0
– SAP HEC connected via VPN, AWS is not
Activities Planned
– Feed results back into Cloud Strategy
Findings
– SAP HEC took 2,5 months to complete versus 2
weeks for Amazon
– Installation costs differ a factor 10
– Run cost differ a factor 10-15
– HANA database on AWS crashed after SP1
import
– Securing the connections time-consuming
Track Status:
Track
Confidence:
27
PoC SAP Cloud

Track Status cFin
– SAP HEC based Suite on Hana connected to
internal ERP source system via SLT
– SAP Central Finance desk researched
– Basic configuration of Finance done
– Decided not to use MDG for master data
mapping
– Mapping tables maintained for financial master
data
– Installed missing components DMIS and AIF
– Real-time replication triggered by new posting
gotten to work
– Working on issues with intitial load, which does
not go via SLT
Activities Planned
– Update ERP Roadmap accordingly
Findings
– Customization of S/4HANA is business as usual,
no suprises
– Central Finance functionality not stable
– Getting Fiori apps to work requires special
expertise
– Fiori apps for Finance mostly working okay
Track Status:
Track
Confidence:
28
PoC SAP Cloud

Track Status S2P
– Basic configuration of Finance done
– Basic configuration of HCM PA and OM done
– Master Data created
– Configured entire Procure to Pay process in 3
weeks
– Connection to external catalogue established
– Working on issues with the Fiori apps
– System restored because of compatibility issues
with notes
Activities Planned
– Update ERP Roadmap accordingly
– Decide on joining S/4HANA customer care
program
Findings
– Back-end integration of SRM into S/4HANA was
done reasonably successful by SAP
– Entire software components appear missing
(MM_PUR_REQ)
– Interaction between front-end and back-end very
buggy, 1511 SP2 will contain ~5000 notes
– S/4HANA Analytics best suited for reporting on
data in S/4HANA database, but can’t replace the
Corporate Data Warehouse
Track Status:
Track
Confidence:
29
PoC SAP Cloud

Jeff realizes the Fictious strategic planning
cycle misses an essential step
The IT Program & Project Portfolio at
Fictious will now be maintained:
• By annual top-down strategic planning
to re-align with business strategy
• Bottom-up input that comes from the
operational level, and
• From the middle-in to explore market
developments
30
Strategy
Execution
Planning

Cindy, pls register
me for the Eswelt
Cloud event?

Jeff leaves him a voicemail
As per Anton’s suggestion Jeff calls Xavier, who runs an Advisory company

Hi Jeff -
You must be aware that Digital Business is really the ultimate
Business IT alignment effort.
Be sure the “speed of change” is reflected in your IT Architecture
just as well as in your IT Governance Model.
Let us set up a videoconference to discuss further.
info@ensead.com
Re: Digital @ Fictious
Jeff soon receives a mail from Xavier and reads it
on his way to his monthly IT department briefing.

‘I wanted to work with Fictious because I have some marvellous ideas on new Digital
offerings. It mixes 3D, IoT, all from the cloud. Now, where do we start??’ –
question asked during IT department briefing.
34
Well, Jeff…?
Oops, almost late for his videoconference with Xavier!

Then, Jeff realizes good ideas are not
bound to strategic planning cycles…
Empower people to act.

Jeff concludes that this again influences his
portfolio planning process…
Safe-track + Fast-track =
Top-down
Bottom-up
Strategy
Execution
Planning
Strategy
Execution
Planning
Two-speed IT
Based on Gartner
Strategy
Execution
Top-down
Bottom-up

1. How well do you know where change is occurring?
2. Do you know which customer journeys matter?
3. Are your teams collaborating across functions?
4. Do you have a disciplined ‘test and learn’ approach?
5. Are your budgets tied to progress?
6. Do you have mechanisms to challenge ideas?
7. Are your people empowered to act?
8. Is your IT operating at two speeds?
9. Are you coordinating a portfolio of initiatives?
Source: McKinsey
Anton Jeff Patricia
Xavier

38
Xavier
suggests
to shift to
‘platform
thinking.’
Source: Gartner

With Bill’s question in mind, the first focus is
on the Business and Leadership Platform
Source: Gartner
Leadership Platform:
• Leadership as a team sport
• Influence over control
• A culture of leadership
• Ecosystem leadership
Business/value platform:
• Platform business models
• Two-sided business models
• Open business models

Based on his session with Xavier, Jeff
presents his thoughts to the Board
40
Jeff suggests the Board is to empower a Leadership Platform for Digital Business.

Cool, finally we
can play a bit!
So currently you feel you are on
your own out there… but with
like ten mates it becomes a
platform. Interesting…
GO AHEAD JEFF!
Let me in,
let me in!!

The Leadership Platform conducts creative
design workshops to think up Digital offerings
42
Many creative ideas were thought up...
Source: GroupMapping

‘Gladly, we’re already looking into some of
our technology issues’, Jeff informs Xavier.
Source: Gartner
Jeff’s already exploring:
• Highly modular, open information and
technology architectures
• Postmodern ERP / Digital Core
• Cloud / XaaS
Current technology issues:
• On-premise Enterprise Applications
running out of maintenance
• Most are tightly integrated
• Data is duplicated across applications
• Security breaches were reported lately
• Connectivity and bandwidth issues
• Mobile devices not managed properly
• BI is synonym to reporting
• Outdated storage technology
• Many complaints about user experience

With the confusing messages from the SAP
sales guy still buzzing in his head…
…Jeff decides to go clear the clouds

Let’s try again – SAP’s as-a-Service offerings
in the Cloud
45
Source: SAP IaaS PaaS SaaS

What the HEC…?
SAP HANA Enterprise Cloud
46
Known in the market as Infrastructure-as-a-Service (IaaS)

SAP also has a significant Cloud Platform
offering – the SAP Cloud Platform (fka HCP)
47
Source: SAP
Known in the market as Platform-as-a-Service (PaaS)

SAP S/4HANA Cloud 1702 overview
48
Source: SAP
Known in the market as Software-as-a-Service (SaaS)

Well, that’s correct. SAP S/4HANA is delivered
‘two-speed’: on-prem and cloud
50
Source: SAP

Even BW/4HANA can be deployed in the cloud
albeit only on HEC and AWS for now
51
Source: SAP

Now is the time to execute a next strategic
planning iteration and create a Cloud strategy
• Map your business capabilities to alternative applications, both
on-prem and cloud options. For P2P, that could be SAP SRM vs
S/4HANA OP vs S/4HANA Cloud vs Ariba
• Separate out Master Data Management, a capability in its own
• Determine dependencies, also cross-business domain
• Apply Enterprise Architecture Principles
• Define decision criteria:
– Business value
– Risk / compliance
– Total Cost of Ownership
– Licensing model / charging concept
– IT governance impact
– Architecural fit
• Calculate TCO and score the selection criteria
• Develop Sourcing strategy (eg public or private cloud)
• Work out integration and security architectures
• Understand and evaluate impact on the IT governance structure
© 2017– ENSEAD Advisory
Top-down
Bottom-up
Strategy
Execution
Planning

‘Hey Jeff… Just overheard
some incredible news…!!!’
FIRED!!

Clear the Clouds
JEFF BRIGHTLIGHT
CIO of the YEAR
2017
2017
Source: CIODAY.nl

The role of SAP Cloud in Digital
Transformation
CIODAY presentation by Jeff C. Brightlight
Chief Digital Officer @ FictiousDigital Ltd.

Jeff begins with explaining how the journey
towards a Digital Business started …
• Challenged and learned from exemplary
disruptive Business Models
• Arrived at a definition as of how Fictious
would see Digital Business
• Had the Board call for Digital offerings
• Created a Digital Leadership Platform
• Conducted creative design workshops
• Assessed Digital-readiness and actioned
accordingly
57
In short, he elaborates on how FictiousDigital:
© 2017– ENSEAD Advisory

…and how he has been driving the
transformation to a Digital Business
• Preparedness of all the Leadership
• IT talent acquisition and talent
development approach
• Agility of IT delivery mechanisms and
governance constructs,
• The current state of our information
and technology architecture
• The added value of Cloud per business
capability
58© 2017– ENSEAD Advisory
Jeff explains how the transformational journey of Fictious Digital started by
assessing how Digitally-ready we were, like
Top-down
Bottom-up
Strategy
Execution
Planning
Jeff and his team developed a Cloud Strategy and Roadmap, now being executed

VISIT WWW.JEFFS-JOURNEY.COM

What can we do together?
• Support or assess strategic decision making around SAP and Cloud
• Architect SAP-rich domains and solutions for Digital initiatives
• Plan and execute transition to S/4HANA, BW4/HANA, and Fiori
• Install and run S/4HANA from the Cloud, like AWS
• Lead MDM architecture and implementation efforts
• Plan and prepare transition to (Scaled) Agile for SAP
• Looking for software developers? Let’s talk!

Want to read more?
• 2017 The Legal Side of Digital – 5 Compliance Must-Knows
• 2017 Can SAP freelancers still make a decent living in 2017
• 2016 Digital Transformation – who needs a CFO…
• 2016 From Big Data to Big Impact
• 2016 Bye, bye SAP BW on HANA
• 2016 The Executive’s Survival Guide for Digital Transformation
• 2016 Nine must-knows before implementing SAP Simple Finance… uhm… now
S/4HANA… Finance
• 2015 Agile SAP - contradiction in terms?

62www.ensead.com| info@ensead.com | +31 (0) 6 11 76 75 21

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