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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 1Public
Speaker’s Name/Department
Date, 2015
With SAP HCM Cloud Service and
Support1610 Release
The Digital Core Unleashed
Public
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public
Disclaimer: This road map represents SAP’s current plan, but is subject to change without any prior notification.
Certain planning constraints, such as regulatory and licensing issues, are outside of our control and may impact the timelines.
2
The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This
presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation
to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality
mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or
platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without
notice. The information in this document is not a commitment, promise or legal obligation to deliver any material, code or
functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the
implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes
and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such
damages were caused by SAP´s willful misconduct or gross negligence.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from
expectations. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of their
dates, and they should not be relied upon in making purchasing decisions.
Legal Disclaimer
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public
Immediate
Empowering business users with
insights to act in the moment
Intelligent
Beyond automation,
to predictive suggestion
Integrated
Not only between your departments,
but connected to the world
Business Networks Customer Experience
Internet of Things
and Big Data
SAP HANA Cloud Platform
Workforce Engagement
SAP HANA Platform
Security
Digital Core
The Digital Core
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Public
Instant, real-time insight for better decisions
– in-memory technology
– embedded analytics
Reinvented processes for higher performance
– maximized throughput and speed
– native integration to SAP solutions
SAP Fiori user experience = higher productivity
– intuitive on all devices, mobile first
– proactive decision-making support
THE NEXT GENERATION BUSINESS SUITE FOR A
DIGITAL WORLD
Simplified Architecture for lower TCO
– lean data footprint
– cloud deployment for higher flexibility
Why SAP S/4HANA?
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Public
DATA MODELING
Constant tuning and updating of aggregates,
indices and other forms of redundant data structures
Complexity
leaves no time
for Finance and
Supply Chain
executives to focus
on the customer
Complex decision making
Managing transaction volumes, data integrity
and system responsiveness to users
Complex processes
Building and maintaining reporting and interface
layers to connect multiple systems and solutions
Complex architectures
BATCH PROCESSING
SYSTEM INTEGRATION
Technology Limitations of the Past
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Public
How These Challenges Manifest in The Real World
• Locked tables prevent movements
• No parallel postings
• High volume back flush = batch jobs and bulk
postings with delay
• No real-time transparency on stock and on exact
material flow: how to identify defective parts
• No actual costs and intercompany profit
transparency
• Need to split system load into multiple distracted
systems
550
Daily Output
per model
3,500
BoM materials
per model, on 10 levels,
60% common parts
7
Car Models
>20M
Material movement
transactions
per day
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Public
How Does SAP S/4HANA Address Today’s Challenges?
Re-architecting for
Visibility and Agility
User Centric,
Responsive and
Personalized User
Experience
Unifying
Functionality
in Core
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Public
AC
DOCA
BKPF BSEG BSET BSIS BSIS BSIK BSET
COBK COEPLFC1 GLT0 GLT0 GLT0 COSP
Master
Data
MSEG
New
MSTQH MSTEH
MSTBH
MSSQH MSSAHMSPRHMSLBH MSKUH
MSKAH
MKOLH
MCHBH
MARDH
MARCH
MSTQ MSTE
MSTB MSSQ MSSA
MSPR MSLB
MSKU MSKA MKOL
MCHBMKPF MARD
SAP Logistics with Aggregates and Indices
SAP S/4HANA Materials Management & Operations
SAP Finance with Aggregates and Indices
SAP S/4HANA Finance
Re-architecting for Visibility and Agility
Inventory Management Example*
Traditional DB on HANA
593 GB
118.6 GB
SAP S/4HANA
42.4 GB
*Illustrative example only
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Public
With Traditional System With SAP S/4HANA
Traditional With SAP S/4HANA
Process Excellence
User
Interaction Ad Hoc
With Traditional System
 Close activities that don’t begin until period end
 Multiple batch-run dependencies
 Batch bottlenecks that delay downstream activities
 High error-correction efforts
 Complex issues that are postponed until after close
 Time-pressured resolutions
 Delayed visibility into reporting
With SAP S/4HANA
 Real-time system with key performance indicators
(KPIs) instantly refreshed
 Elimination of end-of-period batch bottlenecks
 Continuous intercompany reconciliation
 Continuous financial reporting visibility
 Profitability analysis and line-item detail reconciliation
 Automation for routine tasks
 Full management visibility of close tasks
Initial period Close and consolidation
Close
batches
Consolidation
batches
Reporting on demand
Close and consolidationInitial period
Business Process View
Soft Financial Close Anytime
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Public
Enter Material Order Choose best supplier
and complete material
order entry
Review Material
Shortage
Select
Supplier
Analytics and
Insights
Now All On
One Screen
Purchase
Manager
Check Budget
Overview
Review Detail
Report
 Faster customer delivery
 Larger average deal size
 Fewer warehouse stock outs
Check Average
Supplier Delivery
Performance
Cross Sell
*Screenshots shown are for demonstration purposes only and are not final product commitments
Contextual Insights at the Point of Decision
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Public
SAP Fiori: The User Experience of SAP S/4HANA
Single Entry Point
Domain Specific Infos and Actions
Enter Details and Explore In-Depth
The SAP Fiori launchpad will be the single
entry point to access all apps
Users will quickly get an overview of what needs their
attention with Overview Pages, List Reports and Work
Lists, and trigger quick actions or drill down to the next
level of detail
• Key and differentiating use cases will be re-
imagined with the SAP Fiori user experience.
• All “classic” applications will have the SAP Fiori
visual theme.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Public
SAP Fiori 2.0
My Area Notifications
Viewport
Watch Video
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Public
Current State Landscape and Evolution
What’s In, What’s Out?
Integration between LoB core transactions
in SAP S/4HANA and new functionality
and innovations in SAP Cloud solutions
Supply Chain Management
Customer Engagement Management
Supplier Relationship Management
Transportation & Extended Warehouse Management
Core ERP
Master Data
Realize PhasePrepare Phase
Master Data
Core ERP becomes your
Digital Core with SAP S/4HANA
Enhanced core processes including procurement,
manufacturing, supply chain, asset management,
sales and distribution, services, and digital boardroom
Mission Critical reporting within S/4HANA; Historical
Reporting can continue in SAP Business Warehouse
SRM: Ariba is the go-to solution for Strategic Sourcing including Catalog Management; while S/4HANA
supports the full purchase order management process including supplier management with tight
integration into other logistics areas. With S/4HANA customers can also leverage the Ariba network for
selected business processes
CRM: SAP Hybris is the go-to solution to drive customer-centric digital transformation and simplify the
front office in the cloud; while S/4HANA supports the full order execution process, post-sale services and
core transactions with a universal customer ID
SCM: SAP Integrated Business Planning is the go-to cloud solution for sales & operations, demand,
inventory, response and supply planning, while S/4HANA supports production planning, detailed
scheduling and advanced available-to-promise. For supply chain execution, SAP Transportation
Management and SAP Extended Warehouse Management (EWM) are the go-to solutions – stand-alone
or in late 2016, EWM native on S/4HANA
HCM: SAP SuccessFactors is the go-to
solution for human capital management;
while SAP S/4HANA continues to support
payroll, benefits and core transactions
with a universal employee ID
Finance: SAP S/4HANA Finance is
part of core ERP, with both financial
and management accounting
capabilities. This is extended with
planning and compliance functions,
across ERP as well as EPM and
GRC, for a holistic solution that
includes simulation and prediction, as
well as integration into cloud
solutions.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Public
EFFECTIVE GOVERNANCE
FLEXIBLE DEPLOYMENT
FAST INNOVATIONS
DYNAMIC EXTENSIBILITY GUIDED CONFIGURATION
NATIVE INTEGRATION
Cloud and Hybrid
Quarterly Innovation Cycle
Extensions via SAP HANA
Cloud Platform
Fully Managed by SAP
Integration with SAP SuccessFactors
Employee Central, SAP Ariba Network,
SAP hybris Marketing
Ready-to-Run SAP Best
Practices Business Processes
Enterprise Management Cloud
Professional Services Cloud
Marketing Cloud
Finance Cloud
Digital Transformation Delivered Through the Cloud
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Public
Speaker’s Name/Department
Date, 2015
With SAP HCM Cloud Service and
Support
1610 Release
Key Enhancements
Highlights
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 16Public
SAP S/4HANA 1610
Key Enhancement Highlights
Existing & enhanced innovations
New innovations
Advanced
Availability
to Promise
Embedded Extended
Warehouse
Management
SAP S/4HANA
International Trade
Compliance
Plan to produce in
ONE System (PPDS)
Accelerated Material
Requirements
Planning
Consistent Fiori UX
for SAP S/4HANA
Billing and Revenue
Innovation
Management
SAP S/4HANA
Finance
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 17Public
Reduce Transportation Costs Utilizing
Truckload Optimized Purchasing
Reduce Communication Effort
Between Supplier and Customer
The Material Planner can quickly identify all materials to be ordered
due today or within the next days. All materials from one vendor
are ordered together in a way that the availability is balanced and
that the used means of transportation are fully loaded.
SAP Fiori App: Create Optimal Orders for Shipment
Fiori app to identify all materials due today or in the
near future to avoid material shortages. Quantities are
proposed for one selected vendor to balance the availability
of these materials and to fully load the chosen means of
transportation. After a possible manual correction, one
purchase order is created handling all selected materials.
Truckload Optimized Purchase Orders / PP-MRP
This is the current state of planning and may be changed by SAP at any time.
Planned Innovations
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 18Public
Production Planning Business Scenario
A Simple MRP Demonstration
You are a production controller
and you get a sales order to
build one bicycle by noon today
Internal Transfer
Chain Ring
Production Order
2x Wheels
Production Order
Bicycle
Production Order
Frame
Requirement Date
Start Transfer
9:00am 10:00am 11:00am 12:00am8:00am
Internal Transfer
Chain Ring
Production
Order
1x Wheel
Production Order
Bicycle
Production Order
Frame
Start Transfer
Production
Order
1x Wheel
Requirement Date
Resource Occupied
9:30-10:30
9:00am 10:00am 11:00am8:00am 12:00am
Infinite Planning In MRP
Finite Planning in PP/DS
BOM
Internal Transfer
In-house Production
2x Wheels
Chain Ring
Frame
Bottle Neck
Resource Unavailable:
9:30-10:30
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 19Public
Unified Functionality in the Core
Production Planning and Detailed Scheduling
ERP + PP/DS
Run planning in SAP S/4HANA (constrained + unconstrained)
Costly and
complex architecture
Latency
and error prone
Complex
for the user
Easy and simple
for the user
Faster and responsive
production planning
Reduced total
cost of ownership
CURRENT FUNCTIONAL MODEL PLANNED IN 1610 RELEASE
1. Run infinite unconstrained planning in ERP (Frame + Gearbox)
2. Run finite and constrained planning (Wheels)
3. Review results in ERP
4. Review results in APO PP/DS
5. Consolidate and reconcile finite and infinite production plans
SAP ERP
SAP APO
PP/DS
Core Interface
CIF
Frame
2x WheelsChain Ring
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 20Public
CURRENT FUNCTIONAL MODEL PLANNED IN 1610 RELEASE
Unified Functionality in the Core
Extended Warehouse Management
Integration steps required between EWM and ERP
1. Configuration of communication between ERP and EWM using qRFC
2. Definition of a warehouse in ERP and EWM
3. Integration of the warehouse with the organizational structure of ERP
4. Initial master data transfer from ERP to EWM
5. Creation and activation of a Core Interface (CIF) integration model
for the master data transfer from ERP to EWM
Extended Warehouse Management
• Inventory Management Optimization
(e.g. Slotting)
• Inbound Process Optimization
(e.g. Deconsolidation)
• Outbound Process Optimization
(e.g. Waves)
• Material Flow Control
• Yard Management (e.g. TU handling, DAS)
• Labor Management
• Value Added Services
• Kitting
• Cross Docking
• Warehouse Billing
Basic Warehouse Management
• Inventory Management
• Inbound Process
• Outbound Process
• Internal Warehouse Movements
• Physical Inventory
• Reporting
One System for all warehousing
SAP S/4HANA SUPPLY CHAIN
WITH EMBEDDED EWM
Extended Warehouse
Management
SUITE
PRODUCTS
Basic Warehouse
Management
SAP ERP
LE-WM
SAP EWM
Core Interface
CIF
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 21Public
CURRENT FUNCTIONAL MODEL PLANNED IN 1610 RELEASE
Unified Functionality in the Core
Advanced Available to Promise
1. Product Availability Check
2. Product Allocation
3. Rescheduling
4. Substitution
SAP ERP
Basic ATP
SAP APO –
ATP
1. Product Availability Check
2. Product Allocation
3. Rescheduling
4. Substitution
1. Product Availability Check
2. Product Allocation
3. Rescheduling
4. Substitution
Enhanced
Backorder Processing
New concept for
requirement
classification
Enhanced
Product Allocation
Synchronous,
consistent data
Immediate error handling
Release for
Delivery App
Enable timely action on
short term supply and
demand changes
Core Interface
CIF
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 22Public
Reduce TCO. One Run fits all. Former solution requested more subsequent runs.
Increase margin due to flexible order confirmation based on business priorities
in ATP back-order processing.
Flexible and intuitive selection and ranking of sales order requirements.
High performance mass ATP-check.
Planned Innovations – Q4/2016
Advanced ATP – Backorder Processing
This is the current state of planning and may be changed by SAP at any time.
Advanced ATP – Backorder Processing
• New Fiori UX to set-up BOP-runs.
• New concept for requirement classification:
- Winner
- Gainer
- Redistributor
- Filler
- Looser
• New Fiori app to display the BOP-result:
The result is displayed on different aggregation
levels and allows an easy identification of (and fast
drill down to) confirmation issues.
Planned Innovations
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 23Public
BOP (Backorder Processing)
The Five Confirmation Strategies in Detail
Confirm as
Requested
Shall be fully
confirmed in time
(MBAT of
requirement in past
shall be today)
Improve if
Possible
Shall at least keep
the confirmation
and should gain
Redistribute
Should gain,
but also
may lose
Delete
Confirmation
if Required
Shall not gain
anything, should
keep confirmation,
but may also lose
Delete
Confirmation
Shall lose
everything
LOSE
FILL
REDISTRIBUTE
GAINWIN
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 24Public
Speaker’s Name/Department
Date, 2015
With SAP HCM Cloud Service and
Support
1610 Release
Customer Examples
and Next Steps
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 25Public© 2016 SAP SE or an SAP affiliate company. All rights reserved. 25Public
100%
increase
in revenue since
the launch of SAP
S/4HANA Finance
50%
increase
in sales productivity
with on the go
data access
50%
decrease
in closing time since
the launch of SAP
S/4HANA Finance
MEMEBOX
We look to SAP as
a strategic partner
that can guide us toward
digital transformation.”
– Rio Kim, CFO, MEMEBOX Inc.
“
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 26Public
We required a new level
of agility in our systems
in order to successfully
introduce new products.”
– Niel Nickolaisen, Chief Technology Officer,
O.C.Tanner
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 26Public
15 years
Average
customer loyalty
97%
Customer
satisfaction
99%
On time
delivery
O.C.Tanner
“
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 27Public
S/4HANA is empowering
employees with tools AND
insights that drive new
ways of thinking…”
– Steve Strout, Vice President
Corporate Systems, Sabre
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 27Public
300
Integrations
24
Distinct systems
consolidated
into three
27%
Reduction in
custom objects
SABRE
“
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 28Public
• Start a new implementation
and/or bring an existing
landscape back to standard
• Retain existing processes
and migrate from any DB to
HANA
• Adopt and reimage business
processes incrementally
• Re-imagine the business
• Plan the digital transformation
• Design and Execute with the
help technical and functional
support services from SAP
• Identify business
requirements
• Build the business case
• Develop an SAP S/4HANA
adoption strategy and
roadmap
First Steps Your Path The Roadmap Options
• Planning and safeguarding
• Technical
implementation
• Functional implementation
• Co-innovation
Innovation
Strategy and
Roadmap
New implementation
Landscape transformation
System conversion
On premise
Cloud
Hybrid
4
3
2
1
Starting Your Journey to SAP S/4HANA
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 29Public
NEW
CUSTOMERS
CUSTOMERS WITH SAP ERP
ON ANY DATABASE
CUSTOMERS WITH SAP BUSINESS
SUITE POWERED BY SAP HANA
New implementation of SAP S/4HANA,
on-premise edition
System conversion from on-premise SAP ECC 6.x
to SAP S/4HANA (Nov. 2015 planned update)
System Conversion from on-premise SAP Business
Suite powered by SAP HANA to SAP S/4HANA
Service and support
best practices
Service and support
best practices
Service and support
best practices
Migration scoping
and value identification
workshop
Engineered services for
technical deployment
SAP S/4HANA Foundation
rapid-deployment solution
Comprehensive migration
services scoped in “t-shirt”
sizes.
1 PLAN
Scope migration effort
and identify key
business scenarios
2 INSTALL
Install SAP HANA
and SAP S/4HANA
3 IMPORT
Import data from
legacy application
(if necessary)
1 PLAN
Scope migration effort
and identify key
business scenarios
2 CONVERT
Unicode conversion
(if not already done)
3 MIGRATE
Install and migrate
database to SAP HANA
4 INSTALL
Install new code
Migration scoping
and value identification
workshop
Rapid database migration
service
Comprehensive migration
services scoped in “t-shirt”
sizes.
Engineered services for
technical deployment
ONE STEP OPTION
1 PLAN
Identify key
business scenarios
2 INSTALL
Install new code
Value identification
workshop
Engineered services for
technical deployment
Where to Begin?
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 30Public
HOW CAN I LEARN MORE?
WWW.SAP.COM/S4HANA
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 31Public
Speaker’s Name/Department
Date, 2015
With SAP HCM Cloud Service and
Support
1610 Release
Complete Enhancement List
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 32Public
Industry to Core
DIMP
SAP S/4HANA 1610
Key Innovations to Faster Adoption
Existing & enhanced innovations
New innovations
advanced Availability
to Promise
Embedded Extended
Warehouse Management
Effective Order
Management & Billing
Efficient
Procurement
Real time Inventory Management
& Material Valuation
Integrated Quality
Management
Entire S/4HANA Finance
scope included
Embedded Software in
Product Development
Consistent Fiori UX for
SAP S/4HANA
Plan to produce in
ONE System (PPDS)
Optimized Portfolio and
Project Management
Accelerated Material
Requirements Planning
Industry to Core
RETAIL
Industry to Core
OIL&GAS
Remark: Key Innovations does not reflect licensing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 33Public
Extended Warehouse Management embedded in SAP S/4HANA*
» Provide EWM in SAP S/4HANA Core to provide state of the art warehousing capabilities
» Simplified integration to SAP S/4HANA processes
» Focus on Business Role: Warehouse Clerk and Warehouse Operative
Embedded Software in Product Development*
» Manage embedded software versions in the SAP Product Lifecycle Management (SAP PLM)
application
» Manage embedded software in the engineering product structure
» Maintain compatibility information between software and other components of a product
» Check product structure for compatibility of embedded software
SAP Portfolio and Project Management for SAP S/4HANA*
» Simplified Portfolio and Project Management Add-On for SAP S/4HANA
» Overview monitor project progress
» Upcoming activities for project team members
SAP S/4HANA 1610
Key Innovations Highlights
* does not reflect licensing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 34Public
SAP S/4HANA for advanced ATP*
» BOP (Backorder Processing) with Introduction of the new “Winner –Gainer – Looser” concept with five
confirmation strategies
• Simple classification of concurrent sales orders according their business impact
• High-volume back order processing
• ATP confirmation based on business priority instead of order creation time
» Product Allocation in SAP S/4HANA has a completely new design and implementation based on
neither ECC nor APO
» Release for Delivery: Visualization of the business impact of a material shortage situation allows the
user to prioritize his work and concentrate on the real issues
Integrated Quality Management*
» Improve the Segment of One process with Quality management integration
» Support for core QM processes with new roles with SAP Fiori user experience (UX) for Quality
technicians, quality engineers, quality planners, quality managers, quality auditors, calibration
technicians
» Simplified inspection process in SAP S/4HANA integrated Extended Warehouse Management
* does not reflect licensing
SAP S/4HANA 1610
Key Innovations Highlights
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 35Public
SAP S/4HANA International Trade Compliance*
» GRC/SLL: International Trade Management for SAP S/4HANA (SD-FT Replacement by GTS)
» Roles: Trade Classification Specialist and Trade Compliance Specialist
SAP S/4HANA Finance *
» SAP Ariba Integration without the need of add-on installation / remittance advice
» HCP: Customer payment portal, Credit information integration for SAP Credit Management,
SAP Profit and Loss Insights
» Integrated Business Planning: New universal planning journal; Central Profit Center Reporting
» Central Finance: Central Payment and Reconciliation functions
» Real-Time Consolidation: Real-time access to transactional and master data
Billing and Revenue Innovation Management (aka BRIM) *
» FI-CA and Convergent Invoicing in SAP S/4HANA 1610
» Simplified Billing plans
* does not reflect licensing
SAP S/4HANA 1610
Key Innovations Highlights
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 36Public
Master Data Governance (MDG)*
» Embedded in SAP S/4HANA 1610
» Product as unification of Industry material and Retail Article
» Simplified Master data (Customer, Supplier, Product)
» Analytics; master data quality work list
Manufacturing planning: production planning and detailed scheduling (PPDS)*
» Access production planning and detailed scheduling as part of the manufacturing planning
functionalities in SAP S/4HANA 1610
» Create procurement proposals for in-house production or external procurement to cover product
requirements
» Optimize and plan the resource schedule and the order dates and times in detail by taking the
resource and component availability into account
» Plan critical products, such as products with long replenishment lead times or products that are
produced with bottleneck resources
» Create executable production plans
» Use the “Create Optimal Orders for Shipment” app to order several materials in one purchase order
and optimize the order quantities to best utilize the capacity of the means of transport
* does not reflect licensing
SAP S/4HANA 1610
Key Innovations Highlights
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 37Public
Manufacturing planning: Production Scheduling Board*
» Access Web-based graphical scheduling tool for production planning and detailed scheduling
as part of the manufacturing-planning functionalities in SAP S/4HANA 1610
» Customize the Web-based graphical scheduling tool for production planning and detailed
scheduling according to various industry needs
» Optimize and plan the resource schedule and the order dates and times in detail by taking the
resource and component availability into account
» Plan critical products, such as products with long replenishment lead times or products that
are produced with bottleneck resources
» Create executable production plans
* does not reflect licensing
SAP S/4HANA 1610
Key Innovations Highlights
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 38Public
* does not reflect licensing
Industry to Core: OIL & GAS*
Oil and Gas downstream with SAP S/4HANA
» Full enablement of oil and gas downstream functionalities with release 1610 of SAP S/4HANA
» Redesigned hydrocarbon product management (HPM)
» Unit-of-measure group enhancement solution based on simplified HPM data model
» Inventory planning workbench (IPW) that is optimized for the SAP Trader's and Scheduler's
Workbench application
» Role in SAP Fiori for transportation schedulers with apps for regional dashboards, nominations,
and events
» Oil and gas flavored roles in SAP Fiori for transportation schedulers, supply chain managers,
inventory managers, shipping specialists and billing clerks
SAP S/4HANA 1610
Key Innovations Highlights
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 39Public
SAP S/4HANA 1610
SAP S/4HANA International Trade Compliance*
» Intrastat Capabilities
• Supports the European Union (EU) requirement for collecting
information and statistics of trade goods between 25 countries
• Includes procure-to-pay and order-to-cash processes
• Classification of products to support Intrastat declarations
• Monitoring and maintenance of Intrastat declarations
• Statistical reporting ensures compliance
• Leverages GTC (Global Trade Compliance) within GRC
» New Roles for Trade Specialists
• New SAP Fiori UX
• Roles include Trade Classification Specialist and Trade
Compliance Specialist
* does not reflect licensing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 40Public
SAP S/4HANA 1610
SAP S/4HANA Finance*
» SAP S/4HANA Finance
• Central Finance with enhanced central payment and reconciliation
• Enhanced Universal Journal, including Revenue Recognition, account-
based Profitability Analysis, and real-time currency conversion
• Real-Time consolidation with a universal consolidation journal, with
access to transactional and master data, including intercompany
processes and simulation processes
• Integrated Business Planning with a new universal planning journal that
enables central profit center accounting; integration to InfoCubes may
also still be used
» Integration to Edge Solutions
• SAP Ariba integration, including payment advice and payment
proposals (for discounts) without the need of add-on installation
• SAP SuccessFactors for Employee Central for payroll processes
• SAP HCP apps integration, including SAP RealSpend for budgeting and
SAP Financial Statement Insights for profit and loss insights
• SAP HCP integration to SAP S/4HANA Finance Cloud, including a
customer payment portal and credit information integration
• SAP Concur integration with the use of an add-on * does not reflect licensing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 41Public
SAP S/4HANA 1610
Billing and Revenue Innovation Management (BRIM)*
» Flexible Solution Billing for Consolidated Invoices
• Greatly simplifies complex billing processes, to allow service
providers to give customers a single, consolidated invoice, while
delivering better, more personalized services
• Accommodates partnerships with third parties and allows to ramp
up new services by clearly delineating which party is responsible
for any given charge
• Reduces uncollectible A/R write offs by making better decisions
with a consolidated view of outstanding debts across multiple
billing systems
• Reduces days sales outstanding by automating, continuously
analyzing, and optimizing credit scoring and collections strategies
• Leverages SAP Hybris Billing
» New Roles for Trade Specialists
• New SAP Fiori UX
• Roles include Invoicing Manager (Convergent Invoicing), Accounts
Payable/Receivable Manager (FI-CA), KPI Cockpit for Managers
(FI-CA)
* does not reflect licensing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 42Public
SAP S/4HANA 1610
Capabilities Highlights for advanced Availability to Promise*
» SAP HANA-enabled mass product availability check for sales-,
planned- and production-orders.
» Product Allocation
• Supports the business decision, if a sales order should be
confirmed and if yes to which extend.
• This decision can be based on almost every attribute of the
underlying sales order, material, plant or customer.
• Grouping- and aggregation capabilities (collective allocations) for
simplification and ease of maintenance.
» Back Order Processing
• New SAP Fiori UX to set-up BOP-runs.
• New concept for requirement classification like Winner, Gainer,
Redistributor, Filler, Looser.
• New Fiori app to display the BOP-result: The result is displayed on
different aggregation levels and allows an easy identification of
(and fast drill down to) confirmation issues.
» Release for Delivery app to enable timely actions on short term supply
and demand changes.
* does not reflect licensing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 43Public
SAP S/4HANA 1610
Capabilities Highlights for Operational Procurement*
» Leverage Catalog Buying in Self service requisitioning processes
» Monitor critical business events, purchasing spend and supplier
performance in Procurement Overview Page
» Increase supplier relationship and performance by using Activity and
Task Management
» Leverage Purchasing Category in real-time analytics to monitor the
KPIs along business responsibilities
» Visualize planned spend versus actual spend per purchasing category
» New Fiori Apps for Sourcing and Contract Management: Manage
Request for Quotation and Supplier Quotation
» Create Sourcing Request in SAP Ariba Sourcing out of
SAP S/4HANA
» Structure and merge material groups into the new business entity
Purchasing Category
* does not reflect licensing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 44Public
SAP S/4HANA 1610
Capabilities Highlights for Sales Order and Contract Management*
Sales Order and Contract Management covers all processes
and functions required for processing of sales documents
» Create, modify, or display sales documents with work lists in SAP Fiori apps
Manage Sales Quotations, Manage Sales Orders, Manage Sales Contracts,
Manage Credit Memo Requests, and Manage Debit Memo Requests
» Display of contextual information about a sales document with SAP Fiori
object pages Sales Quotation, Sales Order, Sales Contract, Credit Memo
Request, Debit Memo Request, and Customer - 360° View
» Resolve issues that impede sales orders from being fulfilled with SAP Fiori
app Sales Order Fulfillment Monitor, which allows you to Analyze the
fulfillment rate of sales contracts with new SAP Fiori app Sales Contract
Fulfillment Rates
» Analyze the conversion rate of open quotations with SAP Fiori app
Quotation Conversion Rates
» Analyze your open sales orders and deliveries with SAP Fiori app Sales
Volume - Check Open Sales
» Analyze your profit margin with SAP Fiori app Sales Volume - Profit Margin
» Get a comprehensive overview of the performance and conformity of all
sales-order processes in your company with SAP Fiori app Order-To-Cash
Performance Monitor * does not reflect licensing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 45Public
SAP S/4HANA 1610
Capabilities Highlights for Portfolio and Project Management*
Increase end-user productivity with SAP Fiori UX and improved
performance.
Overview monitor project progress
» Overview dashboard for project manager
» Quick overview on what needs project manager attention
» Monitor project progress in SAP Fiori GANTT
» System-guided navigation to critical project tasks
Upcoming activities for project team members
» Task dashboard for triggering task confirmation
» Checklist item dashboards
Availability of SAP Portfolio and Project Management for
SAP S/4HANA
» Simplification of code base and feature set
» Simplified and HANA-optimized data model
» Simplified authorization concept
» Initial set of CDS views for external consumption * does not reflect licensing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 46Public
SAP S/4HANA 1610
Production Planning and Detailed Scheduling (PPDS)*
Unique Value of S/4HANA
TCO reduction:
• PPDS functionality gets
co-deployed with SAP S/4HANA
on the same system utilizing one
HANA database instance
• Integration for material master
and work center resource not
needed
Constraint based planning, using
various heuristics and optimizers by
bringing PP/DS on SAP S/4HANA,
reducing integration efforts and
allowing seamless master data &
UX harmonization
UX Harmonization, CIF Simplification, Master Data Harmonization, Analytics
SAP Advanced Planning
and Optimization –
planning and detailed
scheduling
Live cache
ERP SAP HANA platform
CIF
Traditional System Reinvented Business Processes with SAP S/4HANA
SAP HANA platform, including live cache
Masterdata
CIF
Planning
and detailed
scheduling
SAP S/4HANA
* does not reflect licensing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 47Public
SAP S/4HANA 1610
Capabilities Highlights for Integrated Extended Warehouse Management*
» Access business partner data within SAP S/4HANA instead of
replicating business partners to a decentralized EWM system
» Use material and product data within SAP S/4HANA instead of
replicating it to a decentralized EWM system
» Manage batch master data within SAP S/4HANA instead of
replicating it to a decentralized EWM system
» Directly read purchase order data, process order data, and
production order data instead of replicating those objects to a
decentralized EWM system and storing them in an expected
goods receipt (EGR) document
» Skip warehouse request objects and process only outbound
delivery orders without using outbound-delivery requests;
process only inbound deliveries without having inbound-delivery
notifications; process only posting changes without using
posting-change requests
Plans to bring the full scope of the SAP Extended Warehouse Management (SAP EWM)
application into SAP S/4HANA software, which will provide customers with flexible
deployment options to run all kinds of warehouses within a single SAP solution
* does not reflect licensing
» Maintain only one quality document instead of working with a quality inspection document and a QM inspection lot
» Eliminate the need to replicate accounting objects
» Directly read material values instead of making periodic replications for decentralized storage
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 48Public
SAP S/4HANA
SAP EWM & SAP S/4HANA – Outlook
 SAP EWM embedded in
SAP S/4HANA*
 New deployment option
for our customers
 Small & midsize warehouses;
production warehouses
EWM (decentral)
On-Premise
WM** LES (WM)
EWM
embedded
» De-central EWM (integrated to SAP ERP or SAP S/4HANA) is planned to be a long-term valid deployment option for EWM for good
reasons (e.g. regional EWM systems, risk mitigation, specific planned down-times, scale-out for large DCs , multi-ERP connected; different release cycles; proximity to warehouse (MFS); ..)
» De-central EWM and central S/4HANA-EWM are planned to share a common Core of Warehouse Management Functions
This common Core is planned to evolve over time with new functions in both EWM options.
» De-central EWM and central SAP S/4HANA-EWM are planned to have different technical integration features with SAP ERP, but
identical integration with other SAP systems (e.g. GTS, TM, ..)
» De-central EWM and central SAP S/4HANA-EWM are planned to cover the same business scenarios & processes with only minor
exceptions e.g. central EWM can only integrate with local ERP client, no multi ERP client integration will be possible as required in some LSP scenarios
Plans to bring the full scope of the SAP Extended Warehouse Management (SAP EWM)
application into SAP S/4HANA software, which will provide customers with flexible
deployment options to run all kinds of warehouses within a single SAP solution
* * See Simplification List* does not reflect licensing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 49Public
SAP S/4HANA 1610
Complete the Industry Roadmap with Oil & Gas*
» Redesigned hydrocarbon product management (HPM)
• Redesign changes in Universal Journal
• SD Table Deprecation Adaptation & FSCM Adaptation
• Field length extensions
• Redesign changes in Pricing
• Business Partner – Customer/Vendor master data changes
» Unit-of-measure group enhancement solution based on
simplified HPM data model
» Inventory Planning Workbench (IPW) optimized on HANA as
part of the SAP Trader's and Scheduler's Workbench
application
» Role in SAP Fiori for transportation schedulers with apps
for regional dashboards, nominations, and events
» Oil and gas flavored roles in SAP Fiori for transportation
schedulers, supply chain managers, inventory managers,
shipping specialists and billing clerks
Plans to bring the full scope of Oil & Gas downstream functionalities with release SAP S/4HANA 1610
Screen: Inventory Planning Workbench (IPW)
* does not reflect licensing
Speaker’s Name/Department
Date, 2015
With SAP HCM Cloud Service and
Support
Thank You

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S4 1610 business value l1

  • 1. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 1Public Speaker’s Name/Department Date, 2015 With SAP HCM Cloud Service and Support1610 Release The Digital Core Unleashed Public
  • 2. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public Disclaimer: This road map represents SAP’s current plan, but is subject to change without any prior notification. Certain planning constraints, such as regulatory and licensing issues, are outside of our control and may impact the timelines. 2 The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross negligence. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions. Legal Disclaimer
  • 3. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public Immediate Empowering business users with insights to act in the moment Intelligent Beyond automation, to predictive suggestion Integrated Not only between your departments, but connected to the world Business Networks Customer Experience Internet of Things and Big Data SAP HANA Cloud Platform Workforce Engagement SAP HANA Platform Security Digital Core The Digital Core
  • 4. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Public Instant, real-time insight for better decisions – in-memory technology – embedded analytics Reinvented processes for higher performance – maximized throughput and speed – native integration to SAP solutions SAP Fiori user experience = higher productivity – intuitive on all devices, mobile first – proactive decision-making support THE NEXT GENERATION BUSINESS SUITE FOR A DIGITAL WORLD Simplified Architecture for lower TCO – lean data footprint – cloud deployment for higher flexibility Why SAP S/4HANA?
  • 5. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Public DATA MODELING Constant tuning and updating of aggregates, indices and other forms of redundant data structures Complexity leaves no time for Finance and Supply Chain executives to focus on the customer Complex decision making Managing transaction volumes, data integrity and system responsiveness to users Complex processes Building and maintaining reporting and interface layers to connect multiple systems and solutions Complex architectures BATCH PROCESSING SYSTEM INTEGRATION Technology Limitations of the Past
  • 6. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Public How These Challenges Manifest in The Real World • Locked tables prevent movements • No parallel postings • High volume back flush = batch jobs and bulk postings with delay • No real-time transparency on stock and on exact material flow: how to identify defective parts • No actual costs and intercompany profit transparency • Need to split system load into multiple distracted systems 550 Daily Output per model 3,500 BoM materials per model, on 10 levels, 60% common parts 7 Car Models >20M Material movement transactions per day
  • 7. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Public How Does SAP S/4HANA Address Today’s Challenges? Re-architecting for Visibility and Agility User Centric, Responsive and Personalized User Experience Unifying Functionality in Core
  • 8. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Public AC DOCA BKPF BSEG BSET BSIS BSIS BSIK BSET COBK COEPLFC1 GLT0 GLT0 GLT0 COSP Master Data MSEG New MSTQH MSTEH MSTBH MSSQH MSSAHMSPRHMSLBH MSKUH MSKAH MKOLH MCHBH MARDH MARCH MSTQ MSTE MSTB MSSQ MSSA MSPR MSLB MSKU MSKA MKOL MCHBMKPF MARD SAP Logistics with Aggregates and Indices SAP S/4HANA Materials Management & Operations SAP Finance with Aggregates and Indices SAP S/4HANA Finance Re-architecting for Visibility and Agility Inventory Management Example* Traditional DB on HANA 593 GB 118.6 GB SAP S/4HANA 42.4 GB *Illustrative example only
  • 9. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Public With Traditional System With SAP S/4HANA Traditional With SAP S/4HANA Process Excellence User Interaction Ad Hoc With Traditional System  Close activities that don’t begin until period end  Multiple batch-run dependencies  Batch bottlenecks that delay downstream activities  High error-correction efforts  Complex issues that are postponed until after close  Time-pressured resolutions  Delayed visibility into reporting With SAP S/4HANA  Real-time system with key performance indicators (KPIs) instantly refreshed  Elimination of end-of-period batch bottlenecks  Continuous intercompany reconciliation  Continuous financial reporting visibility  Profitability analysis and line-item detail reconciliation  Automation for routine tasks  Full management visibility of close tasks Initial period Close and consolidation Close batches Consolidation batches Reporting on demand Close and consolidationInitial period Business Process View Soft Financial Close Anytime
  • 10. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Public Enter Material Order Choose best supplier and complete material order entry Review Material Shortage Select Supplier Analytics and Insights Now All On One Screen Purchase Manager Check Budget Overview Review Detail Report  Faster customer delivery  Larger average deal size  Fewer warehouse stock outs Check Average Supplier Delivery Performance Cross Sell *Screenshots shown are for demonstration purposes only and are not final product commitments Contextual Insights at the Point of Decision
  • 11. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Public SAP Fiori: The User Experience of SAP S/4HANA Single Entry Point Domain Specific Infos and Actions Enter Details and Explore In-Depth The SAP Fiori launchpad will be the single entry point to access all apps Users will quickly get an overview of what needs their attention with Overview Pages, List Reports and Work Lists, and trigger quick actions or drill down to the next level of detail • Key and differentiating use cases will be re- imagined with the SAP Fiori user experience. • All “classic” applications will have the SAP Fiori visual theme.
  • 12. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Public SAP Fiori 2.0 My Area Notifications Viewport Watch Video
  • 13. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Public Current State Landscape and Evolution What’s In, What’s Out? Integration between LoB core transactions in SAP S/4HANA and new functionality and innovations in SAP Cloud solutions Supply Chain Management Customer Engagement Management Supplier Relationship Management Transportation & Extended Warehouse Management Core ERP Master Data Realize PhasePrepare Phase Master Data Core ERP becomes your Digital Core with SAP S/4HANA Enhanced core processes including procurement, manufacturing, supply chain, asset management, sales and distribution, services, and digital boardroom Mission Critical reporting within S/4HANA; Historical Reporting can continue in SAP Business Warehouse SRM: Ariba is the go-to solution for Strategic Sourcing including Catalog Management; while S/4HANA supports the full purchase order management process including supplier management with tight integration into other logistics areas. With S/4HANA customers can also leverage the Ariba network for selected business processes CRM: SAP Hybris is the go-to solution to drive customer-centric digital transformation and simplify the front office in the cloud; while S/4HANA supports the full order execution process, post-sale services and core transactions with a universal customer ID SCM: SAP Integrated Business Planning is the go-to cloud solution for sales & operations, demand, inventory, response and supply planning, while S/4HANA supports production planning, detailed scheduling and advanced available-to-promise. For supply chain execution, SAP Transportation Management and SAP Extended Warehouse Management (EWM) are the go-to solutions – stand-alone or in late 2016, EWM native on S/4HANA HCM: SAP SuccessFactors is the go-to solution for human capital management; while SAP S/4HANA continues to support payroll, benefits and core transactions with a universal employee ID Finance: SAP S/4HANA Finance is part of core ERP, with both financial and management accounting capabilities. This is extended with planning and compliance functions, across ERP as well as EPM and GRC, for a holistic solution that includes simulation and prediction, as well as integration into cloud solutions.
  • 14. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Public EFFECTIVE GOVERNANCE FLEXIBLE DEPLOYMENT FAST INNOVATIONS DYNAMIC EXTENSIBILITY GUIDED CONFIGURATION NATIVE INTEGRATION Cloud and Hybrid Quarterly Innovation Cycle Extensions via SAP HANA Cloud Platform Fully Managed by SAP Integration with SAP SuccessFactors Employee Central, SAP Ariba Network, SAP hybris Marketing Ready-to-Run SAP Best Practices Business Processes Enterprise Management Cloud Professional Services Cloud Marketing Cloud Finance Cloud Digital Transformation Delivered Through the Cloud
  • 15. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Public Speaker’s Name/Department Date, 2015 With SAP HCM Cloud Service and Support 1610 Release Key Enhancements Highlights
  • 16. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 16Public SAP S/4HANA 1610 Key Enhancement Highlights Existing & enhanced innovations New innovations Advanced Availability to Promise Embedded Extended Warehouse Management SAP S/4HANA International Trade Compliance Plan to produce in ONE System (PPDS) Accelerated Material Requirements Planning Consistent Fiori UX for SAP S/4HANA Billing and Revenue Innovation Management SAP S/4HANA Finance
  • 17. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 17Public Reduce Transportation Costs Utilizing Truckload Optimized Purchasing Reduce Communication Effort Between Supplier and Customer The Material Planner can quickly identify all materials to be ordered due today or within the next days. All materials from one vendor are ordered together in a way that the availability is balanced and that the used means of transportation are fully loaded. SAP Fiori App: Create Optimal Orders for Shipment Fiori app to identify all materials due today or in the near future to avoid material shortages. Quantities are proposed for one selected vendor to balance the availability of these materials and to fully load the chosen means of transportation. After a possible manual correction, one purchase order is created handling all selected materials. Truckload Optimized Purchase Orders / PP-MRP This is the current state of planning and may be changed by SAP at any time. Planned Innovations
  • 18. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 18Public Production Planning Business Scenario A Simple MRP Demonstration You are a production controller and you get a sales order to build one bicycle by noon today Internal Transfer Chain Ring Production Order 2x Wheels Production Order Bicycle Production Order Frame Requirement Date Start Transfer 9:00am 10:00am 11:00am 12:00am8:00am Internal Transfer Chain Ring Production Order 1x Wheel Production Order Bicycle Production Order Frame Start Transfer Production Order 1x Wheel Requirement Date Resource Occupied 9:30-10:30 9:00am 10:00am 11:00am8:00am 12:00am Infinite Planning In MRP Finite Planning in PP/DS BOM Internal Transfer In-house Production 2x Wheels Chain Ring Frame Bottle Neck Resource Unavailable: 9:30-10:30
  • 19. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 19Public Unified Functionality in the Core Production Planning and Detailed Scheduling ERP + PP/DS Run planning in SAP S/4HANA (constrained + unconstrained) Costly and complex architecture Latency and error prone Complex for the user Easy and simple for the user Faster and responsive production planning Reduced total cost of ownership CURRENT FUNCTIONAL MODEL PLANNED IN 1610 RELEASE 1. Run infinite unconstrained planning in ERP (Frame + Gearbox) 2. Run finite and constrained planning (Wheels) 3. Review results in ERP 4. Review results in APO PP/DS 5. Consolidate and reconcile finite and infinite production plans SAP ERP SAP APO PP/DS Core Interface CIF Frame 2x WheelsChain Ring
  • 20. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 20Public CURRENT FUNCTIONAL MODEL PLANNED IN 1610 RELEASE Unified Functionality in the Core Extended Warehouse Management Integration steps required between EWM and ERP 1. Configuration of communication between ERP and EWM using qRFC 2. Definition of a warehouse in ERP and EWM 3. Integration of the warehouse with the organizational structure of ERP 4. Initial master data transfer from ERP to EWM 5. Creation and activation of a Core Interface (CIF) integration model for the master data transfer from ERP to EWM Extended Warehouse Management • Inventory Management Optimization (e.g. Slotting) • Inbound Process Optimization (e.g. Deconsolidation) • Outbound Process Optimization (e.g. Waves) • Material Flow Control • Yard Management (e.g. TU handling, DAS) • Labor Management • Value Added Services • Kitting • Cross Docking • Warehouse Billing Basic Warehouse Management • Inventory Management • Inbound Process • Outbound Process • Internal Warehouse Movements • Physical Inventory • Reporting One System for all warehousing SAP S/4HANA SUPPLY CHAIN WITH EMBEDDED EWM Extended Warehouse Management SUITE PRODUCTS Basic Warehouse Management SAP ERP LE-WM SAP EWM Core Interface CIF
  • 21. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 21Public CURRENT FUNCTIONAL MODEL PLANNED IN 1610 RELEASE Unified Functionality in the Core Advanced Available to Promise 1. Product Availability Check 2. Product Allocation 3. Rescheduling 4. Substitution SAP ERP Basic ATP SAP APO – ATP 1. Product Availability Check 2. Product Allocation 3. Rescheduling 4. Substitution 1. Product Availability Check 2. Product Allocation 3. Rescheduling 4. Substitution Enhanced Backorder Processing New concept for requirement classification Enhanced Product Allocation Synchronous, consistent data Immediate error handling Release for Delivery App Enable timely action on short term supply and demand changes Core Interface CIF
  • 22. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 22Public Reduce TCO. One Run fits all. Former solution requested more subsequent runs. Increase margin due to flexible order confirmation based on business priorities in ATP back-order processing. Flexible and intuitive selection and ranking of sales order requirements. High performance mass ATP-check. Planned Innovations – Q4/2016 Advanced ATP – Backorder Processing This is the current state of planning and may be changed by SAP at any time. Advanced ATP – Backorder Processing • New Fiori UX to set-up BOP-runs. • New concept for requirement classification: - Winner - Gainer - Redistributor - Filler - Looser • New Fiori app to display the BOP-result: The result is displayed on different aggregation levels and allows an easy identification of (and fast drill down to) confirmation issues. Planned Innovations
  • 23. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 23Public BOP (Backorder Processing) The Five Confirmation Strategies in Detail Confirm as Requested Shall be fully confirmed in time (MBAT of requirement in past shall be today) Improve if Possible Shall at least keep the confirmation and should gain Redistribute Should gain, but also may lose Delete Confirmation if Required Shall not gain anything, should keep confirmation, but may also lose Delete Confirmation Shall lose everything LOSE FILL REDISTRIBUTE GAINWIN
  • 24. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 24Public Speaker’s Name/Department Date, 2015 With SAP HCM Cloud Service and Support 1610 Release Customer Examples and Next Steps
  • 25. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 25Public© 2016 SAP SE or an SAP affiliate company. All rights reserved. 25Public 100% increase in revenue since the launch of SAP S/4HANA Finance 50% increase in sales productivity with on the go data access 50% decrease in closing time since the launch of SAP S/4HANA Finance MEMEBOX We look to SAP as a strategic partner that can guide us toward digital transformation.” – Rio Kim, CFO, MEMEBOX Inc. “
  • 26. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 26Public We required a new level of agility in our systems in order to successfully introduce new products.” – Niel Nickolaisen, Chief Technology Officer, O.C.Tanner © 2016 SAP SE or an SAP affiliate company. All rights reserved. 26Public 15 years Average customer loyalty 97% Customer satisfaction 99% On time delivery O.C.Tanner “
  • 27. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 27Public S/4HANA is empowering employees with tools AND insights that drive new ways of thinking…” – Steve Strout, Vice President Corporate Systems, Sabre © 2016 SAP SE or an SAP affiliate company. All rights reserved. 27Public 300 Integrations 24 Distinct systems consolidated into three 27% Reduction in custom objects SABRE “
  • 28. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 28Public • Start a new implementation and/or bring an existing landscape back to standard • Retain existing processes and migrate from any DB to HANA • Adopt and reimage business processes incrementally • Re-imagine the business • Plan the digital transformation • Design and Execute with the help technical and functional support services from SAP • Identify business requirements • Build the business case • Develop an SAP S/4HANA adoption strategy and roadmap First Steps Your Path The Roadmap Options • Planning and safeguarding • Technical implementation • Functional implementation • Co-innovation Innovation Strategy and Roadmap New implementation Landscape transformation System conversion On premise Cloud Hybrid 4 3 2 1 Starting Your Journey to SAP S/4HANA
  • 29. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 29Public NEW CUSTOMERS CUSTOMERS WITH SAP ERP ON ANY DATABASE CUSTOMERS WITH SAP BUSINESS SUITE POWERED BY SAP HANA New implementation of SAP S/4HANA, on-premise edition System conversion from on-premise SAP ECC 6.x to SAP S/4HANA (Nov. 2015 planned update) System Conversion from on-premise SAP Business Suite powered by SAP HANA to SAP S/4HANA Service and support best practices Service and support best practices Service and support best practices Migration scoping and value identification workshop Engineered services for technical deployment SAP S/4HANA Foundation rapid-deployment solution Comprehensive migration services scoped in “t-shirt” sizes. 1 PLAN Scope migration effort and identify key business scenarios 2 INSTALL Install SAP HANA and SAP S/4HANA 3 IMPORT Import data from legacy application (if necessary) 1 PLAN Scope migration effort and identify key business scenarios 2 CONVERT Unicode conversion (if not already done) 3 MIGRATE Install and migrate database to SAP HANA 4 INSTALL Install new code Migration scoping and value identification workshop Rapid database migration service Comprehensive migration services scoped in “t-shirt” sizes. Engineered services for technical deployment ONE STEP OPTION 1 PLAN Identify key business scenarios 2 INSTALL Install new code Value identification workshop Engineered services for technical deployment Where to Begin?
  • 30. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 30Public HOW CAN I LEARN MORE? WWW.SAP.COM/S4HANA
  • 31. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 31Public Speaker’s Name/Department Date, 2015 With SAP HCM Cloud Service and Support 1610 Release Complete Enhancement List
  • 32. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 32Public Industry to Core DIMP SAP S/4HANA 1610 Key Innovations to Faster Adoption Existing & enhanced innovations New innovations advanced Availability to Promise Embedded Extended Warehouse Management Effective Order Management & Billing Efficient Procurement Real time Inventory Management & Material Valuation Integrated Quality Management Entire S/4HANA Finance scope included Embedded Software in Product Development Consistent Fiori UX for SAP S/4HANA Plan to produce in ONE System (PPDS) Optimized Portfolio and Project Management Accelerated Material Requirements Planning Industry to Core RETAIL Industry to Core OIL&GAS Remark: Key Innovations does not reflect licensing
  • 33. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 33Public Extended Warehouse Management embedded in SAP S/4HANA* » Provide EWM in SAP S/4HANA Core to provide state of the art warehousing capabilities » Simplified integration to SAP S/4HANA processes » Focus on Business Role: Warehouse Clerk and Warehouse Operative Embedded Software in Product Development* » Manage embedded software versions in the SAP Product Lifecycle Management (SAP PLM) application » Manage embedded software in the engineering product structure » Maintain compatibility information between software and other components of a product » Check product structure for compatibility of embedded software SAP Portfolio and Project Management for SAP S/4HANA* » Simplified Portfolio and Project Management Add-On for SAP S/4HANA » Overview monitor project progress » Upcoming activities for project team members SAP S/4HANA 1610 Key Innovations Highlights * does not reflect licensing
  • 34. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 34Public SAP S/4HANA for advanced ATP* » BOP (Backorder Processing) with Introduction of the new “Winner –Gainer – Looser” concept with five confirmation strategies • Simple classification of concurrent sales orders according their business impact • High-volume back order processing • ATP confirmation based on business priority instead of order creation time » Product Allocation in SAP S/4HANA has a completely new design and implementation based on neither ECC nor APO » Release for Delivery: Visualization of the business impact of a material shortage situation allows the user to prioritize his work and concentrate on the real issues Integrated Quality Management* » Improve the Segment of One process with Quality management integration » Support for core QM processes with new roles with SAP Fiori user experience (UX) for Quality technicians, quality engineers, quality planners, quality managers, quality auditors, calibration technicians » Simplified inspection process in SAP S/4HANA integrated Extended Warehouse Management * does not reflect licensing SAP S/4HANA 1610 Key Innovations Highlights
  • 35. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 35Public SAP S/4HANA International Trade Compliance* » GRC/SLL: International Trade Management for SAP S/4HANA (SD-FT Replacement by GTS) » Roles: Trade Classification Specialist and Trade Compliance Specialist SAP S/4HANA Finance * » SAP Ariba Integration without the need of add-on installation / remittance advice » HCP: Customer payment portal, Credit information integration for SAP Credit Management, SAP Profit and Loss Insights » Integrated Business Planning: New universal planning journal; Central Profit Center Reporting » Central Finance: Central Payment and Reconciliation functions » Real-Time Consolidation: Real-time access to transactional and master data Billing and Revenue Innovation Management (aka BRIM) * » FI-CA and Convergent Invoicing in SAP S/4HANA 1610 » Simplified Billing plans * does not reflect licensing SAP S/4HANA 1610 Key Innovations Highlights
  • 36. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 36Public Master Data Governance (MDG)* » Embedded in SAP S/4HANA 1610 » Product as unification of Industry material and Retail Article » Simplified Master data (Customer, Supplier, Product) » Analytics; master data quality work list Manufacturing planning: production planning and detailed scheduling (PPDS)* » Access production planning and detailed scheduling as part of the manufacturing planning functionalities in SAP S/4HANA 1610 » Create procurement proposals for in-house production or external procurement to cover product requirements » Optimize and plan the resource schedule and the order dates and times in detail by taking the resource and component availability into account » Plan critical products, such as products with long replenishment lead times or products that are produced with bottleneck resources » Create executable production plans » Use the “Create Optimal Orders for Shipment” app to order several materials in one purchase order and optimize the order quantities to best utilize the capacity of the means of transport * does not reflect licensing SAP S/4HANA 1610 Key Innovations Highlights
  • 37. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 37Public Manufacturing planning: Production Scheduling Board* » Access Web-based graphical scheduling tool for production planning and detailed scheduling as part of the manufacturing-planning functionalities in SAP S/4HANA 1610 » Customize the Web-based graphical scheduling tool for production planning and detailed scheduling according to various industry needs » Optimize and plan the resource schedule and the order dates and times in detail by taking the resource and component availability into account » Plan critical products, such as products with long replenishment lead times or products that are produced with bottleneck resources » Create executable production plans * does not reflect licensing SAP S/4HANA 1610 Key Innovations Highlights
  • 38. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 38Public * does not reflect licensing Industry to Core: OIL & GAS* Oil and Gas downstream with SAP S/4HANA » Full enablement of oil and gas downstream functionalities with release 1610 of SAP S/4HANA » Redesigned hydrocarbon product management (HPM) » Unit-of-measure group enhancement solution based on simplified HPM data model » Inventory planning workbench (IPW) that is optimized for the SAP Trader's and Scheduler's Workbench application » Role in SAP Fiori for transportation schedulers with apps for regional dashboards, nominations, and events » Oil and gas flavored roles in SAP Fiori for transportation schedulers, supply chain managers, inventory managers, shipping specialists and billing clerks SAP S/4HANA 1610 Key Innovations Highlights
  • 39. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 39Public SAP S/4HANA 1610 SAP S/4HANA International Trade Compliance* » Intrastat Capabilities • Supports the European Union (EU) requirement for collecting information and statistics of trade goods between 25 countries • Includes procure-to-pay and order-to-cash processes • Classification of products to support Intrastat declarations • Monitoring and maintenance of Intrastat declarations • Statistical reporting ensures compliance • Leverages GTC (Global Trade Compliance) within GRC » New Roles for Trade Specialists • New SAP Fiori UX • Roles include Trade Classification Specialist and Trade Compliance Specialist * does not reflect licensing
  • 40. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 40Public SAP S/4HANA 1610 SAP S/4HANA Finance* » SAP S/4HANA Finance • Central Finance with enhanced central payment and reconciliation • Enhanced Universal Journal, including Revenue Recognition, account- based Profitability Analysis, and real-time currency conversion • Real-Time consolidation with a universal consolidation journal, with access to transactional and master data, including intercompany processes and simulation processes • Integrated Business Planning with a new universal planning journal that enables central profit center accounting; integration to InfoCubes may also still be used » Integration to Edge Solutions • SAP Ariba integration, including payment advice and payment proposals (for discounts) without the need of add-on installation • SAP SuccessFactors for Employee Central for payroll processes • SAP HCP apps integration, including SAP RealSpend for budgeting and SAP Financial Statement Insights for profit and loss insights • SAP HCP integration to SAP S/4HANA Finance Cloud, including a customer payment portal and credit information integration • SAP Concur integration with the use of an add-on * does not reflect licensing
  • 41. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 41Public SAP S/4HANA 1610 Billing and Revenue Innovation Management (BRIM)* » Flexible Solution Billing for Consolidated Invoices • Greatly simplifies complex billing processes, to allow service providers to give customers a single, consolidated invoice, while delivering better, more personalized services • Accommodates partnerships with third parties and allows to ramp up new services by clearly delineating which party is responsible for any given charge • Reduces uncollectible A/R write offs by making better decisions with a consolidated view of outstanding debts across multiple billing systems • Reduces days sales outstanding by automating, continuously analyzing, and optimizing credit scoring and collections strategies • Leverages SAP Hybris Billing » New Roles for Trade Specialists • New SAP Fiori UX • Roles include Invoicing Manager (Convergent Invoicing), Accounts Payable/Receivable Manager (FI-CA), KPI Cockpit for Managers (FI-CA) * does not reflect licensing
  • 42. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 42Public SAP S/4HANA 1610 Capabilities Highlights for advanced Availability to Promise* » SAP HANA-enabled mass product availability check for sales-, planned- and production-orders. » Product Allocation • Supports the business decision, if a sales order should be confirmed and if yes to which extend. • This decision can be based on almost every attribute of the underlying sales order, material, plant or customer. • Grouping- and aggregation capabilities (collective allocations) for simplification and ease of maintenance. » Back Order Processing • New SAP Fiori UX to set-up BOP-runs. • New concept for requirement classification like Winner, Gainer, Redistributor, Filler, Looser. • New Fiori app to display the BOP-result: The result is displayed on different aggregation levels and allows an easy identification of (and fast drill down to) confirmation issues. » Release for Delivery app to enable timely actions on short term supply and demand changes. * does not reflect licensing
  • 43. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 43Public SAP S/4HANA 1610 Capabilities Highlights for Operational Procurement* » Leverage Catalog Buying in Self service requisitioning processes » Monitor critical business events, purchasing spend and supplier performance in Procurement Overview Page » Increase supplier relationship and performance by using Activity and Task Management » Leverage Purchasing Category in real-time analytics to monitor the KPIs along business responsibilities » Visualize planned spend versus actual spend per purchasing category » New Fiori Apps for Sourcing and Contract Management: Manage Request for Quotation and Supplier Quotation » Create Sourcing Request in SAP Ariba Sourcing out of SAP S/4HANA » Structure and merge material groups into the new business entity Purchasing Category * does not reflect licensing
  • 44. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 44Public SAP S/4HANA 1610 Capabilities Highlights for Sales Order and Contract Management* Sales Order and Contract Management covers all processes and functions required for processing of sales documents » Create, modify, or display sales documents with work lists in SAP Fiori apps Manage Sales Quotations, Manage Sales Orders, Manage Sales Contracts, Manage Credit Memo Requests, and Manage Debit Memo Requests » Display of contextual information about a sales document with SAP Fiori object pages Sales Quotation, Sales Order, Sales Contract, Credit Memo Request, Debit Memo Request, and Customer - 360° View » Resolve issues that impede sales orders from being fulfilled with SAP Fiori app Sales Order Fulfillment Monitor, which allows you to Analyze the fulfillment rate of sales contracts with new SAP Fiori app Sales Contract Fulfillment Rates » Analyze the conversion rate of open quotations with SAP Fiori app Quotation Conversion Rates » Analyze your open sales orders and deliveries with SAP Fiori app Sales Volume - Check Open Sales » Analyze your profit margin with SAP Fiori app Sales Volume - Profit Margin » Get a comprehensive overview of the performance and conformity of all sales-order processes in your company with SAP Fiori app Order-To-Cash Performance Monitor * does not reflect licensing
  • 45. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 45Public SAP S/4HANA 1610 Capabilities Highlights for Portfolio and Project Management* Increase end-user productivity with SAP Fiori UX and improved performance. Overview monitor project progress » Overview dashboard for project manager » Quick overview on what needs project manager attention » Monitor project progress in SAP Fiori GANTT » System-guided navigation to critical project tasks Upcoming activities for project team members » Task dashboard for triggering task confirmation » Checklist item dashboards Availability of SAP Portfolio and Project Management for SAP S/4HANA » Simplification of code base and feature set » Simplified and HANA-optimized data model » Simplified authorization concept » Initial set of CDS views for external consumption * does not reflect licensing
  • 46. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 46Public SAP S/4HANA 1610 Production Planning and Detailed Scheduling (PPDS)* Unique Value of S/4HANA TCO reduction: • PPDS functionality gets co-deployed with SAP S/4HANA on the same system utilizing one HANA database instance • Integration for material master and work center resource not needed Constraint based planning, using various heuristics and optimizers by bringing PP/DS on SAP S/4HANA, reducing integration efforts and allowing seamless master data & UX harmonization UX Harmonization, CIF Simplification, Master Data Harmonization, Analytics SAP Advanced Planning and Optimization – planning and detailed scheduling Live cache ERP SAP HANA platform CIF Traditional System Reinvented Business Processes with SAP S/4HANA SAP HANA platform, including live cache Masterdata CIF Planning and detailed scheduling SAP S/4HANA * does not reflect licensing
  • 47. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 47Public SAP S/4HANA 1610 Capabilities Highlights for Integrated Extended Warehouse Management* » Access business partner data within SAP S/4HANA instead of replicating business partners to a decentralized EWM system » Use material and product data within SAP S/4HANA instead of replicating it to a decentralized EWM system » Manage batch master data within SAP S/4HANA instead of replicating it to a decentralized EWM system » Directly read purchase order data, process order data, and production order data instead of replicating those objects to a decentralized EWM system and storing them in an expected goods receipt (EGR) document » Skip warehouse request objects and process only outbound delivery orders without using outbound-delivery requests; process only inbound deliveries without having inbound-delivery notifications; process only posting changes without using posting-change requests Plans to bring the full scope of the SAP Extended Warehouse Management (SAP EWM) application into SAP S/4HANA software, which will provide customers with flexible deployment options to run all kinds of warehouses within a single SAP solution * does not reflect licensing » Maintain only one quality document instead of working with a quality inspection document and a QM inspection lot » Eliminate the need to replicate accounting objects » Directly read material values instead of making periodic replications for decentralized storage
  • 48. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 48Public SAP S/4HANA SAP EWM & SAP S/4HANA – Outlook  SAP EWM embedded in SAP S/4HANA*  New deployment option for our customers  Small & midsize warehouses; production warehouses EWM (decentral) On-Premise WM** LES (WM) EWM embedded » De-central EWM (integrated to SAP ERP or SAP S/4HANA) is planned to be a long-term valid deployment option for EWM for good reasons (e.g. regional EWM systems, risk mitigation, specific planned down-times, scale-out for large DCs , multi-ERP connected; different release cycles; proximity to warehouse (MFS); ..) » De-central EWM and central S/4HANA-EWM are planned to share a common Core of Warehouse Management Functions This common Core is planned to evolve over time with new functions in both EWM options. » De-central EWM and central SAP S/4HANA-EWM are planned to have different technical integration features with SAP ERP, but identical integration with other SAP systems (e.g. GTS, TM, ..) » De-central EWM and central SAP S/4HANA-EWM are planned to cover the same business scenarios & processes with only minor exceptions e.g. central EWM can only integrate with local ERP client, no multi ERP client integration will be possible as required in some LSP scenarios Plans to bring the full scope of the SAP Extended Warehouse Management (SAP EWM) application into SAP S/4HANA software, which will provide customers with flexible deployment options to run all kinds of warehouses within a single SAP solution * * See Simplification List* does not reflect licensing
  • 49. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 49Public SAP S/4HANA 1610 Complete the Industry Roadmap with Oil & Gas* » Redesigned hydrocarbon product management (HPM) • Redesign changes in Universal Journal • SD Table Deprecation Adaptation & FSCM Adaptation • Field length extensions • Redesign changes in Pricing • Business Partner – Customer/Vendor master data changes » Unit-of-measure group enhancement solution based on simplified HPM data model » Inventory Planning Workbench (IPW) optimized on HANA as part of the SAP Trader's and Scheduler's Workbench application » Role in SAP Fiori for transportation schedulers with apps for regional dashboards, nominations, and events » Oil and gas flavored roles in SAP Fiori for transportation schedulers, supply chain managers, inventory managers, shipping specialists and billing clerks Plans to bring the full scope of Oil & Gas downstream functionalities with release SAP S/4HANA 1610 Screen: Inventory Planning Workbench (IPW) * does not reflect licensing
  • 50. Speaker’s Name/Department Date, 2015 With SAP HCM Cloud Service and Support Thank You