S/4 HANA presentation at INDUS

Reimagine Business with the Next-Generation Business Suite

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2
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subject to change and may be changed by SAP at any time for any reason without notice. The information in this
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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
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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
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We’ve come a long way together
1972
SAP R/1
1979
SAP R/2
1992
SAP R/3
2000
mySAP
2004
SAP ERP
2011
SAP HANA
Client/serverMainframe
World
Wide Web
In-memory
computing
Service-oriented
architecture
ü 40+ years of innovation across industries
ü 291,000 customers
ü 74% of the world’s transaction revenue touches an SAP software system
ü Integration
ü Standardization
ü Globalization

Today, five trends are dramatically reshaping the economy
Cyber security
Bad actors have expansive disruptive capabilities.
Trust remains the ultimate currency, giving security-
focused businesses a significant advantage in brand
reputation.
Cloud computing
Technology infrastructure is now rented to eliminate
barriers to entry. Project timelines are dramatically
shortened, and customer relationships are becoming
increasingly direct.
Supercomputing
The limits of 20th century computing power are gone.
Networking and in-memory computing allow for the
creation of new business opportunities previously
unimaginable.
Smarter world
Sensors, robotics, 3D printing, and artificial
intelligence are the new normal, driving an outcome-
based economy.
Hyperconnectivity
Every consumer and machine is connected,
disrupting established business channels, processes,
and relationships.

. . . offering infinite opportunities to first movers
Impact on profitability
Market valuation
Early adopters
are winning
In the next 10 years, 40% of the S&P 500 will no longer exist if they do not keep up with these technology trends*
* “The Digital Advantage: how digital leaders outperform their peers in every industry”: CapGemini and MIT Sloan, 2013 (link)
Revenue creation
9%+
26%+
12%+

But the greatest barrier to digital transformation is complexity
Complex technology Complex business processesComplex decision making
€237 billion in annual profits are lost by the world’s top 200 companies (10% of profits)
<1%
Of today’s data is being turned
into business benefits
40%
Of management time is wasted
on nonrevenue-generating
activity
63%
Of executives want to simplify
business operations

Technology limitations of the past is the cause of IT complexity
DATA MODELING
Constant tuning and updating of aggregates, indices and other forms
of redundant data structures
Complexity
leaves no time
for IT to focus
on innovation
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

SAP HANA enables Digital Transformation Journey..
SAP
HANA
SAP Business
Warehcouse
powered by
SAP HANA
SAP Business
Suite powered
by SAP HANA
SAP S/4HANA
Finance
Ÿ Real-time analysis
Ÿ Real-time reporting
Ÿ Real-time business
Ÿ OLAP and OLTP together
Ÿ SAP HANA Enterprise
Cloud for SAP Business
Suite on SAP HANA
Ÿ In-memory platform Ÿ Instant financial insight
Ÿ No aggregates
Ÿ Single source of truth
Ÿ Simplified data model
Ÿ New user experience
Ÿ Advanced processing
Ÿ Choice of deployment
2011 20132012 2014 2015

SAP HANA, the most advanced in-memory platform
SAP HANA PLATFORM
APPLICATION SERVICES
Web Server | JavaScript | Fiori UX | Application Lifecycle Management
INTEGRATION SERVICES
Smart Data Access | Smart Data Integration | R Integration
DATABASE SERVICES
OLTP + OLAP | Data Modeling | Stored Procedures | Multitenant Database Containers
Libraries | Search | Text Analytics | Graph | Planning* | Spatial | Predictive
Dynamic Tiering | Streaming | Smart Data Quality
Available only with SAP products – SAP Business Warehouse powered by HANA, Business Planning & Consolidation(BPC), Sales & Operations Planning (S&OP)
IN-MEMORY ACID
COLUMNAR
• SQL
• JSON
• ADO.NET
• J/ODBC
• OData
• HTML5
• MDX
• XML/A
MULTI-CORE /
PARALLELIZATION
ADVANCED
COMPRESSION

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 10© 2015 SAP SE or an SAP affiliate company. All rights reserved.
SAP Ranked as the Clear Leader in Forrester's In Memory Database
Platform Wave Evaluation
n SAP is the only company who earned a perfect 5/5 for our vision
n SAP is the only company to receive a 5/5 for data management
and transaction capabilities
n SAP earned a 5/5 for analytics support, performance and scale,
execution, market presence, customers, revenue and partners
Source: Noel Yuhanna, The Forrester Wave™: In-Memory Database Platforms, Q3 2015
“SAP’s razor-sharp focus on in-
memory technology is paying off.”

How can I better utilize my
products and assets?
Assets and
Internet of Things
Analyze sensor data from
products, and deliver outcome-
based experiences
Monitor assets on the factory
floor to predict failure and
decrease downtime
Gain instant visibility into
whereabouts of in-transit
materials to drive new scheduling
efficiencies
Business leaders need to digitally transform across five key pillars
11
How can I better engage my
workforce?
Workforce
Engagement
Attract and retain talent by clearly
communicating business impact
Enhance decision making with a
cross-device, personalized user
experience
Gain full visibility into critical
human resource gaps to prevent
business disruption
How can I deliver an
omnichannel experience?
Customer
Experience
Omnichannel
Engage customers more
personally with one-to-one
marketing
Personalize products and offerings
by slicing and dicing customer data
on the fly
Predict customer behavior, and
make context-relevant product
recommendations
How can I increase supplier
collaboration?
Suppler Collaboration and
Business Networks
Extend business processes, and
deliver new value to customers
Gain the flexibility to customize to
changing customer demands in
shorter planning cycles
Orchestrate profitability with real-
time sensing of demand-and-
supply data
How can I digitize my core?
Core Business
Processes
Move away from lengthy and
time-consuming batch processes
React quickly to market signals
happening in real-time across the
value chain
Connect my enterprise to people,
devices, business and social
networks

SAP S/4HANA reimagines businesses for the digital economy
Ÿ The entire value chain is digitized,
including the digital core that
serves as the foundation for business
innovation and optimization.
Ÿ The digital enterprise interconnects
all aspects of the value chain to drive
and anticipate business outcomes
in real time.
Ÿ Enterprises across industries can
lead the digital transformation by
completely reimagining business
models, business processes, and
work.

. . . interconnecting all aspects of the value chain
Customer Experience
Omnichannel
Workforce
Engagement
Supplier Collaboration
Business Networks
Assets and
Internet of Things
Ÿ Leverage the broadest business network end-to-end source-to-
procure processes
• Manage costs and drive innovation with suppliers in all
categories of spending (materials, services, labor, T&E)
• Drive solution adoption and purchasing compliance globally with
easy to use applications and mobile apps
Ÿ Drive digitized mission-critical business
processes across all operations
Ÿ Get instant business insight on one single
source of live information on any device
Ÿ Predict and simulate to anticipate future
business outcomes
Ÿ Orchestrate business processes across marketing,
commerce, sales, and service
Ÿ Deliver personalized experiences in context for each
interaction
Ÿ Build a golden customer profile, with an enriched view of
the customer from multiple data sources
Ÿ Recruit and onboard the best workforce, simplify their work, and
ensure regulatory and compliance
Ÿ Manage the total workforce lifecycle, from recruiting,
onboarding, performance, compensation, and learning
Ÿ Enable the workforce to easily access the right information
across any device
Ÿ Drive new business insight by capturing and analyzing
real-time information on Big Data
Ÿ Embed device data across the value chain to create new business
models
Ÿ Leverage an open innovation platform to quickly integrate, extend,
and build innovative apps (on premise, in the cloud)
The Digital Core
SAP HANA Cloud Platform

SAP S/4HANA
Introducing the next-generation core and lines-of-business solutions for the digital economy
Ÿ The SAP S/4HANA lines-of-
business (LoB) solutions combine
a modern and simplified core built on
the
SAP HANA platform with
best-in-class LoB solutions
and connection to business
networks.
Ÿ These solutions are designed to
help meet the new requirements
of lines of business in the digital
economy: real-time information on
Big Data, personalized customer
experiences, omnichannel,
connected devices, people, and
businesses.
Ÿ The LoB solutions can continue to
be consumed as standalone
solutions or as part of the SAP
S/4HANA LoB solutions, giving
more choice to customers,
allowing true hybrid scenarios
and incremental deployments.
Industries
TheDigitalCore
SAP S/4HANA
SERVICE
SAP S/4HANA
HUMAN RESOURCES
SAP S/4HANA
MANUFACTURING
SAP S/4HANA
SUPPLY CHAIN
SAP S/4HANA
MARKETING AND
COMMERCE
SAP S/4HANA
FINANCE
SAP S/4HANA
SALES
SAP S/4HANA
SOURCING &
PROCUREMENT
SAP S/4HANA
ASSET
MANAGEMENT
SAP S/4HANA
RESEARCH AND
DEVELOPMENT
TheDigitalCore
Enterprise Management

Digitize beyond the core, embrace the digital economy
Internet
of Things
Business
networks
Social
networks
Devices
Big Data
People
Process enriched
Scalability I Real time I Prediction I Simulation
Live data
Granular I Responsive I Accurate
User empowered
Instant insight I Contextual information I Personalized experience
Segment of 1
Lot size of 1
No latency
Traditional core value play
SAP S/4HANA value play
Atscale
Leading-edge processes I Integrated system
Digital transformation of business models
Digital coreDigital economy Digital transformation

Analogy
Customer value
Digital driving environment
Empowered driver
Enriched process

SAP S/4HANA: reimagined Application software
Simple data
model
Modern user
experience
Innovative
business solutions
Non-disruptive
journey

SAP S/4HANA, example with finance
COSPCOEPCOBKBKPF BSEG BSEG BSEG BSIS BSIS BSIK BSET LFC1 GLT0 GLT0 GLT0
SAP S/4HANA Finance 4 0
updatesinserts
Finance application with aggregates and indexes 10 5
no indexes no aggregates no redundancies
CORE DATA STRUCTURE
REMAINS UNCHANGED

Traditional DB
Column
store
Any attribute
as an index
OLAP + OLTP
together
Compression
on HANA
593 GB
118.6 GB
Data footprint reduction - Example

Traditional DB on HANA S/4HANA
593 GB
118.6 GB
42.4 GB
BKPF BSEG BSEG BSEG BSIS BSIS BSIK
BSE
T
COBK COEPLFC1 GLT0 GLT0 GLT0 COSP
MSTQH MSTEH
MSTBH MSSQH MSSAH
MSPRHMSLBH MSKUH
MSKAH
MKOLH
MCHBH MARDH
MARCH
MSTQ MSTE
MSTB MSSQ MSSA
MSPR MSLB
MSKU MSKA
MKOL
MCHBMKPF
MSEG
MARD
MARC
Master
Data
MSEG
New
SAP Logistics with aggregates and indicesSAP Simple LogisticsSAP Finance with aggregates and indicesSAP Simple Finance
Data footprint reduction - Example
Simplified data model
• Semantically Rich Data Model
• Drop Performance Workarounds
• Keep all Information

SAP S/4HANA analytics architecture
SAP HANA PLATFORM
ŸAtomic ŸPredefinedŸInstantaneous
SAP HANA Database Layer Physical Tables
ABAP Layer SAP HANA Views
Core Data Services (CDS)
Hybrid Transactional and Analytical
Applications
Example: SAP Smart Business cockpits
Analytical Apps and BI Clients
Example: SAP Lumira

Simple user experience
nRole-based
engagement across the business
nInstant access
to any business insight
nSimple design
across business processes
Personalized
Responsive
Simple

SAP Smart Business – new user experience and working model
SAP Smart Business provides a new User
Experience & working model -
§ Role-based access to all relevant
information - KPIs, news feeds etc…
§ New working model supporting end to end
insight to action scenarios including
simulation & forecasting
§ Users can easily personalize
§ New coherent and responsive user
experience supporting multiple devices
§ Color-coded visualization of violated
thresholds
§ SAP Smart Business is an open
framework…
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. 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

Innovative business solutions
DRILL DOWNS
REAL TIME
PREDICTIONS
SIMULATIONS RECOMMENDATIONS
RESPONSIVE
Eliminate batch processing,
data reconciliation
Discover and respond to future
opportunities and challenges
Explore the impact of business
decisions on outcomes
Analyze at any level
without exporting data
Improve user satisfaction
by reducing wait time
Built-in data-driven decision
support systems

25© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Close Books in a Day
Task acceleration
and automation
Intra-period reconciliation
Soft close and simulation
(planned)
$ Optimize Working Capital
Group cash management
Working capital analytics
Continuous cash collections
Invoice and discount optimization
Ensure Compliance
Fraud detection and
prevention
Audit management
Plan Dynamically
Integrated business
planning
Predictive forecasting
Budget management
(planned)
Value Scenarios for Finance Operations
”“ Real-time analytics enabling real-time processes
Centralize Finance
Real-time financial and operational reporting
Harmonized internal and external reporting
Group reporting in multi-ERP and M&A situations
Flexible reporting in matrix organizations
Centralized process execution
Analyze Plan Transact

Challenges of the Current Architecture
Multiple Sources of Truth
Challenges
Ø The combined content of several tables
represents “the truth” in SAP ERP.
Reconciliation efforts are required by
design.
Ø Need “to move” data to the appropriate
table for reporting (e.g. “settlement”)
Ø Different level of detail stored in the
respective components/tables
Ø Components are structured differently
(e.g. fields/entities differ)
Ø Different capabilities in the components
(customer fields, currencies, multi-
GAAP etc.)
Ø Performance often required the usage
of a data warehouse introducing
another redundant repository.
Ø Multiple BW extractors needed to cover
the complete truth in data warehouse.
Business
Warehouse
Reconciliation

Universal Journal
Single Source of Truth
S/4HANA Architecture
Ø Concept: “Take the best of all worlds”
(e.g. ledger, market segment, coding
block, etc.)
Ø ONE line item table with full detail for all
applications - for instant insight &
extensibility
Ø This replaces the “logical document” of
release 1.0.
Ø Secondary cost elements are G/L
accounts.
Ø Data stored only once: no reconciliation
needed by design
Ø Reduction of memory footprint through
elimination of redundancy.
Ø Fast multi-dimensional reporting
possible without replicating data to
business warehouse (BW).
Ø If BW is in place anyway, only one single
extractor needed.A universal journal entry can have (technically) up to 999,999 line items à
less or no need for summarization (depending on data volume)

SAP S/4HANA Materials Management & Operations – Key
Innovations
This is the current state of planning and may be changed by SAP at any time.
Material
Requirements Planning
Fast MRP run, and new
working model for MRP
controllers based on decision
support.
Inventory
Management
Simplified data model
resulting in increased through-
put, flexible analytics at the
most granular level.
Material
Valuation
Principle of One, scalable
material valuation capabilities,
utilizing Material Ledger, that
way customers can use multi-
currencies, valuation methods
per different accounting laws
like GAAP.
Available To Promise &
Backorder processing
Enhance ERP by advanced
ATP capabilities in APO, new
coding to make it better,
innovation benefit as
functionality will be refreshed.
Capacity
Planning
New deployment option
for bringing PP/DS on
ERP, reducing integration
efforts, allowing
seamless master data &
UI harmonization.
Order Management & Billing
Enable monitoring of end-to-end order-to-cash process &
take actions for any exceptions, information on the
exceptions to resolve the issues, lower TCO due to data
model simplification, support for the most recent versions
of business features such as FSCM Credit Management,
GTS Foreign Trade, SFIN Revenue Accounting, new
analytical capabilities.
Procurement
Increased efficiency in the
Procure-to-Pay processes, new
Analytical Apps & Spend KPI’s,
Ariba Network Integration for
PO Order and IV.

SAP is delivering simplicity to your business processes
Reimagined
Business Models
Simplicity to connect to people,
devices, business networks
Reimagined
Business Decisions
Simplicity to get any insight on
any data from anywhere
Reimagined
Business Processes
Simplicity to quickly create, run,
manage and modify processes
No more batch –
all processes in real time
No more complex collaboration –
all business connected
Decisions on the fly,
Predicted outcomes
S/4
HANA

• SAP has crossed the 1,400+ customer mark for SAP S/4HANA since the launch of the suite in February 2015.
• SAP S/4HANA has already become the fastest-growing software in SAP history.
• The SAP Activate innovation adoption framework makes the journey simpler for customers to drive their
digital transformation.
• A large ecosystem of partners is now fully enabled and engaged to help customers across all regions.
MESSAGES
TOP
SAP S/4HANA in Action
1,600 customers

S/4 HANA presentation at INDUS

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