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Kevin F. Reilly, ASUG Community Advocate – S/4HANA @KevinReilly

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Presentation on theme: "Kevin F. Reilly, ASUG Community Advocate – S/4HANA @KevinReilly "— Presentation transcript:

1 SAP® S/4HANA Release 1511: What You Need to Know and Why Should You Care?
Kevin F. Reilly, ASUG Community Advocate – S/4HANA @KevinReilly ROAD2HANA Seminar – 6 April 2016

2 Legal Disclaimer This presentation outlines our general product direction and should not be relied on in making a purchase decision. This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation. 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. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent.

3 Agenda Intro to SAP S/4HANA Release 1511 Highlights & Takeaways
SAP S/4HANA System Conversion SAP S/4HANA Landscape Transformation SAP S/4HANA New Implementation

4 SAP S/4HANA – The User Experience Reimagined

5 SAP Fiori – Intuitive User Experience
Today Functional-based applications Target Role-based applications from: One transaction for multiple roles with too much and complex functionality to: Decomposed apps for each role with simple functions from: Multiple entry points for the user and inconsistent user experience to: One entry point for the User and UX following common design directions This is the current state of planning and may be changed by SAP at any time. © 2015 SAP SE or an SAP affiliate company. All rights reserved.

6 SAP S/4HANA Data Model Simplification
@BeSchulze

7 Principle of One Data Model Simplifications
Sales and Distribution Inventory Mgmt. (Quantities) Inventory Mgmt. (Valuation via „MBEW) Material Ledger (multi GAAP, multi currency) Finance * Primary Document tables MARD MARC MSTQH MSTEH MSTBH MSSQH MSSAH MSPRH MSLBH MSKUH MSKAH MKOLH MCHBH MARDH MARCH MSTQ MSTE MSTB MSSQ MSSA MSPR MSLB MSKU MSKA MKOL MCHB MKPF MSEG Totals tables Document MBEW Totals CE4* QBEW Totals CKMLPP CKMLCR COSP FAGLFLEXT VBAK LIKP VBRK OBEW COSS OBEW COFIT GLFUNCT GLPCT Business Suite VBAP LIPS VBRP VBFA CKMI1 BSIS BSET BSIK BSID BSIM Totals Index Indices Export/import tables BSAS BSAK Index tables LIS tables BSAD Status tables MBEWH QBEWH EIKP VBUK S066 VAPMA Document VAKPA BKPF EIPO VBUP S067 OBEWH OBEWH MLHD MLIT Documents VLPMA BSEG VLKPA MLPP MLCR FAGLFLEXA Rebate index Output mgmt VRPMA MLPPF MLCRF COBK GLPCA VRKPA ANEK GLFUNCA VBOX NAST COEP ANEP COFIS History tables Sales and Distribution Master Data Inventory Mgmt (Quantities) Material Ledger (multi GAAP, multi currency) Finance * VBAK LIKB VBRK BKPF COBK VBAP LIPS VBRP VBFA Material MATDOC Material Prices ACDOCA BSEG BSET Simple Data Model Only main tables remaining, no redundancies Clear separation of master data from transactional data Reduction of memory footprint Principle of One Only one valuation method (Material Ledger) instead of 2 (IM + ML) Flexible rebate management instead of cumbersome and expensive redundancies Throughput Increase INSERT only on database level (MM-IM), no locks for standard price valuation * Actual Data only Not displayed in lower part: Profit Center Accounting, Cost based CO-PA, Reconciliation Ledger © 2015 SAP SE or an SAP affiliate company. All rights reserved.

8 Innovations: Inventory Management Simplification
Business Suite MSLB MSKU MSKA MKOL MCHB MSTQ MSTE MSTB MSSQ MSSA MSPR Aggregates History MSLBH MSKUH MARDH MARCH MSKAH MKOLH MCHBH MSTQH MSTEH MSTBH MSSQH MSSAH MSPRH On the fly aggregation Document MKPF MSEG Inventory movements MATDOC Material Document Material Master Master data without Stock aggregates Master data with Stock aggregates Master data MARC MARD MARC MARD Transactional Data MARCH MARDH 26 aggregate tables © 2015 SAP SE or an SAP affiliate company. All rights reserved.

9 Operational Reporting
SAP S/4HANA real-time analytics architecture Foundation for new class of applications Applications (incl. insight-to-action) SAP S/4HANA applications Operational Reporting Query Tools Zero latency! SAP NetWeaver PLATFORM ABAP Layer SAP HANA Views (Virtual Data Model) Core Data Services (CDS) SAP HANA Database Layer Physical Tables Granular Instantaneous Pre-defined © 2015 SAP SE or an SAP affiliate company. All rights reserved.

10 SAP S/4HANA Enterprise Management
SAP S/4HANA Enterprise Management Logistics comprises generally the functionality covered by ECC 6.0x logistics Major Simplifications in the areas of: Inventory Management Material Requirements Planning Capacity Planning Sales and Distribution Procurement Enterprise Management Logistics Financials Logistics General (LO) Product Lifecycle Management (PLM) Sales and Distribution (SD) Materials Management (MM) Digital Core Digital Core Logistics Execution (LE) Quality Management (QM) Plant Maintenance (PM) Customer Service (CS) HCM Production Planning & Control (PP) Project Management (PS) Environment, Health & Safety (EHS) Others: Global Trade Management, Compensation Management, Agency Business, … Industry specific Functions: Discrete Industries – Automotive, High Tech, IM&C, A&D, Mill Products, Chemicals © 2015 SAP SE or an SAP affiliate company. All rights reserved.

11 SAP S/4HANA 1511 – Key Logistics Innovations
Material Requirements Planning Inventory Management Material Valuation Available To Promise & Backorder processing Capacity Planning Elimination of locking, increased throughput for standard price utilizing Material Ledger, that way customers can use multi-currencies, valuation methods per different accounting laws like GAAP. Fast MRP run, and new working model for MRP controllers based on decision support. Simplified data model resulting in increased through-put, flexible analytics at the most granular level. New ATP Algorithm based on HANA embedded in mass component check in production PP/DS Side by Side with S/4 Order Management & Billing Procurement 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. Increased efficiency in the Procure-to-Pay processes, new Analytical Apps & Spend KPI’s, Ariba Network Integration for PO Order and IV. © 2015 SAP SE or an SAP affiliate company. All rights reserved. This is the current state of planning and may be changed by SAP at any time.

12 SAP S/4HANA ASUG Key Takeaways
@BeSchulze

13 Summary – The Value Levers Are Huge
S/4HANA Enablement Business Outcome Reduced footprint x10 Increased throughput x 7 Analytics speed > x1000 Complexity reduction TCO reduction Service quality increase HANA Data Models Efficient access to information Proactive issue notification Pre-evaluation of solution alternatives Simulation before application of solution Margin protection Service quality increase User productivity Higher asset utilization Productivity Predictability Exception driven Signal to action User Experience and Decisions Frequency Granularity De-layer processes Raise process intelligence Effectiveness Significantly higher process frequency Real-time inventory updates Lot size 1 handling capability Participate in Industry 4.0 Inventory cost reduction Service quality increase Revenue growth Business Agility Business Processes Connectivity Organizational agility Granular data processing capability Subscription economy Organizational Agility S/4 HANA Leverage Internet of Things Products become services No ownership of things Stock price appreciation Market share growth Customer success/loyalty Business Models Business Value © 2015 SAP SE or an SAP affiliate company. All rights reserved.

14 HANA is about Transformation, not about speed
Speed is really a symptom, not the entire result Faster processes should lead to org changes For example: Shorter MRP run times or shorter financial period closes – look to how this impacts the business process Faster MRP – can you run MRP on-demand? What advantage does that give the company? Shorter period close – Does this allow financial staff to add value in other ways? More time for analysis? Don’t focus only on speed. Greater value comes from redesigned business processes.

15 Additional key Takeaways
Update training materials to include Fiori UX changes All migrations to S/4HANA need OCM support and attention Analyze S/4HANA functionality for process improvements Change in roles of technical support staff BASIS / DBAs especially Cloud changes Hybrid environment can implement quicker in some cases Also moves some support from internal to cloud vendor Moves capital investment to manageable expense

16 ASUG’s Take on S/4HANA Adds value to your company
Finance activities are quicker, more streamlined SAP VE group measures 25% faster close, 61% less expense Recent November release of 1511 Was called Simple Logistics; now renamed “S/4 HANA Enterprise Management” Simplifies some of the IT workload Less DBA work for BASIS folks Smaller footprint of database Simplifies the Processes for just about everyone else

17 Introduction to SAP S/4HANA

18 SAP S/4HANA – Next-generation Business Suite
S/4HANA is a new product line; new code base Innovative HANA Database New architecture and data models New UI technology – SAP Fiori Different deployment models Cloud edition On-premise edition S/4 Platform consist of HANA In Memory DB, S/4 Applications like Simple Finance, Role based Fiori UI. All available in either on-premise or on the cloud. The S/4 Platform has planned integration to the various LOB Cloud solutions.

19 SAP S/4HANA Next-generation Business Suite
S/4 Platform consist of HANA In Memory DB, S/4 Applications like Simple Finance, Role based Fiori UI. All available in either on-premise or on the cloud. The S/4 Platform has planned integration to the various LOB Cloud solutions.

20 The Move to SAP S/4HANA The transition scenarios
Example: Complete conversion of an existing SAP Business Suite system to SAP S/4HANA System Conversion ERP System On-Premise ERP System - Region A - On-Premise Example: Consolidation of current regional SAP Business Suite landscape into one global SAP S/4HANA system Landscape Transformation ERP System - Region B - ERP System - Region C - Cloud Oren SAP Service and Support can help orchestrate and deliver the power of SAP S/4HANA in the cloud, on premise, or as a hybrid solution – removing complexities and streamlining innovation. Whether you’re considering an upgrade to your existing SAP landscape, are already using the SAP HANA platform, or are starting from a pristine instance, our experts are ready to guide you on your journey to S/4HANA. Choose from our value discovery, strategy and design, migration and implementation, innovations, and optimization and adoption services to find the best migration path to help you meet your IT and business priorities. On-Premise ERP System Example: New or existing SAP customer implementing a new SAP S/4HANA system New Implementation Non-SAP System Cloud

21 SAPACTIVATE How to support customer adoption scenarios
New Installation System Conversion Landscape Transformation Scenario Characteristics Migration of transactional & master data to S/4HANA Technical upgrade and migration of complete SAP ERP to S/4HANA IT consolidation or carve out specific parts of a SAP Business Suite. Re-Implement these parts on S/4HANA Target Group Installed Base & Net New Installed Base Deployment type S/4H SAPACTIVATE SAP Best Practices Ü Migration & cloud integration Migration & cloud integration, Ready-to-run business processes as they apply to the scenario SAP Activate Methodology ü SAP Guided Configuration x Applicable as far as ready-to-run business processes are used On-Premise On-Premise Cloud On-Premise Cloud

22 SAP S/4HANA SYSTEM CONVERSION

23 SAP S/4HANA system conversion Procedure
On-premise Edition Scenario description Customers who want to change their current system into a SAP S/4HANA system. Database, SAP NetWeaver and application transition in one step. Benefits Migration without reimplementation No disruption for existing business processes Re-evaluation of customization and existing process flows Software Update Manager (SUM) with Database Migration Option (DMO) SAP GUI (SAP GUI) / SAP Fiori SAP ERP Core * SAP S/4HANA Core AnyDB / SAP HANA SAP HANA What How Installation and migration Rapid Database Migration of SAP Business Suite to SAP S/4HANA (all one step migration, including SAP S/4HANA Finance and SAP S/4HANA Logistics conversion) using SUM with DMO *

24 SAP S/4HANA System conversion & SAP S/4HANA Finance
Technical Procedure based on Software Update Manager (SUM) with its Database Migration Option (DMO) SAP S/4HANA Release 1511 on-premise edition SAP S/4HANA Core SAP S/4HANA Enterprise Management) SAP S/4HANA Finance 1503/1506/1508 on-premise edition SAP HANA SAP ERP 6.0, EhP 7 SAP NetWeaver 7.40 SAP HANA Start Release SAP ERP 6.0, EHP 0-7 The road to SAP S/4HANA SAP S/4HANA Finance, on-premise edition is the first offering under the SAP S/4HANA product family The decision to go for SAP S/4HANA Finance, on-premise edition should be based on the business benefits but is not a mandatory prerequisite for any system conversion SAP NetWeaver 7.0x AnyDB or SAP HANA

25 System Conversion Downtime Minimized Approach
On-Line User Activity Continues Step 3: System Ramp Down and User Activity Paused Existing SAP ERP Existing Landscape Existing SAP ERP 3 Step 1: Copy Production System to New Environment and create Database Triggers Step 4: Deltas Accumulated Since System Copy Transferred 1 4 User Activity Continues To-Be S/4HANA Landscape Step 2: Copied System Upgraded and Migrated to S/4HANA Step 5: System Brought On-Line Copy of SAP ERP SAP S/4HANA SAP HANA 2 5

26 Migration Approach - Best Practices What does a project look like?
Development SAP ERP QA SAP ERP Production SAP ERP Retire Non-HANA Landscape Existing Landscape 1 2 3 4 5 S/4HANA Sandbox SAP HANA S/4HANA Development SAP HANA S/4HANA QA SAP HANA S/4HANA Production SAP HANA S4/HANA Dry Run SAP HANA To-Be S4/HANA Landscape Step 1: Upgrade/Migrate production copy to a S/4HANA Sandbox Step 2: Upgrade/Migrate Dev to S/4HANA Development Step 3: Upgrade/Migrate QA to S/4HANA QA – Perform User Acceptance Tests Step 4: Practice Production Cutover in Dry Run – Execute Performance Tuning Step 5: Perform Production Cutover

27 SAP S/4HANA LANDSCAPE TRANSFORMATION

28 Transition to SAP S/4HANA Landscape transformation
On-premise Edition Scenario description Customers who want to consolidate their landscape or to selectively transform data into a SAP S/4HANA system. Benefits Value-based migration: selective data transformation allows a phased approach focusing the first SAP S/4HANA migration phase on parts of the business with highest ROI and lowest TCI Agility: stay on current business processes but move gradually to SAP S/4HANA innovations (Move to SAP S/4HANA at your own pace!) TCO reduction: system and landscape consolidation with harmonized/ simplified processes and unified master data lead to lower cost of operations SAP S/4HANA Cloud Edition Consolidation or selective data transformation based on SAP LT capabilities (SAP GUI) / SAP Fiori SAP S/4HANA Core SAP HANA What How Consolidation SAP Landscape Transformation Consolidate clients from different source systems into one new or existing SAP S/4HANA system (build-up multiple client system) Selective Data Transformation SAP Landscape Transformation Migration of business units/single entities such as company code Migration of selected SAP applications (example: central Finance) 1 2

29 SAP S/4HANA landscape transformation scenarios – On-premise – SAP LT enabled solutions
Consolidation Migration of Business Units (Company Code) Migration of selected applications (centralFinance) Pre-configured Tailored offerings for selective data migration requirements (for example based on time slice, plant or other objects) can be requested as project solution or service.

30 SAP S/4HANA NEW IMPLEMENTATION

31 Your way to SAP S/4HANA Scenario: New Implementation
Scenario description New installation of SAP S/4HANA e.g. for customers migrating a legacy system. Deployment Options: SAP S/4HANA Cloud Edition SAP S/4HANA On-Premise Edition Benefits for the customer Reengineering and process simplification based on ready-to-run business processes and reference solution delivered with the product New implementation of industry-leading Business Suite Pre-defined migration objects & Best Practices available in a guided process SAP S/4HANA On-Premise Edition SAP S/4HANA Cloud Edition SAP Fiori Legacy Any customers legacy system SAP S/4HANA Core SAP HANA Focused on net-new customers (coming from any legacy system) or SAP Business Suite customers that start for different reasons with a new SAP S/4HANA installation. This includes technically the following installation steps in an on premise scenario (main steps): Installation SAP NetWeaver Application Server ABAP 7.50 based on SAP HANA Installation of SAP S/4HANA system Deployment of SAP Best Practices Migration of data from SAP or non-SAP system to SAP S/4HANA system What How Install S/4HANA SWPM (Software Provisioning Manager) Initial data load from source system Depending on the complexity and deployment option  Topic of this session 1 2

32 SAP S/4HANA New Implementation Implementation Cockpit
Data Migration The data migration activities can be executed based on the cloud implementation cockpit Based on the selected Business Scenarios relevant data migration objects are proposed Existing customers can connect their SAP Business Suite system. For new customers a template-based approach can be used. Frank

33 SAP S/4HANA New Implementation Data migration functionality (Cloud)
SLT Virtual private network (VPN) (b) SLT SAP Business Suite (Source System) S/4HANA Cloud (Target System) SLT (c) Customer Master (classic) Customer Master (S/4HANA) SAP Landscape Transformation (SLT) Tool required on customer’s OP system Customer needs to establish VPN connection to OP System For new customers (legacy migration) a template-based approach is used (XLS) Transfer into new data structure Frank Status S/4HANA Cloud The move to the cloud can be considered as a new implementation project with classical data migration activities. Data transfer is supported by a data migration server toolset included in the S/4 HANA stack (SAP Landscape Transformation [SLT]). Virtual private network (VPN) connection: Set-up connectivity between source system and Cloud target system in cooperation with SAP Service Center With the first SAP S/4HANA Cloud release, only a limited set of data migration objects are supported (focus for the business scenario “Project based services”) For Example: Customer & Vendor Master (source = classic customer, vendor) Material Master Bank Master Activity Types, Activity Type Groups Cost Centers, Profit Centers, Profit Center Groups, Cost Center Group Inventory Balances Planned Independent Requirements The first S/4HANA Cloud customers will get specific migration support by SAP Outlook Based on the first S/4HANA customer we want to improve support for migration projects improve the migration tools (advanced error handling, application specific checks, mapping …) Replace VPN by Cloud Connector Data Migration Services Standardized Data Migration Services are defined and offered for the S/4HANA cloud edition and the required data migration tasks need to be executed in close cooperation with SAP. Data Extraction Data Mapping API/BAPI Call S/4HANA Cloud System SAP Cloud Operations: Provision of cloud instance Customer: Implement configuration in target Customer: Implement integration to SAP Business Suite System or use template- based approach Service Center: Re-Implement customer enhancements S/4HANA Cloud Data Migration Consulting Service: Maintain data mapping (Business Objects to be transferred) in SLT Transfer of master data; Transfer of transactional data Customer: Data Validation

34 ASUG Webcasts ASUG & SAP S/4HANA webcast series begins in March
Topics: Deployment Functionality Look for the registration link coming soon!

35 ASUG Webcasts – Register on asug.com !!!
March 10th: Planning Your Journey to SAP S/4HANA March 17th: SAP S/4HANA Extension and Custom Code Management April 7th: SAP S/4HANA Business Use Cases: Finance April 14th: SAP S/4HANA Business Use Cases: Inventory Management April 21st: SAP S/4HANA Business Use Cases: Material Req. Planning April 28th: SAP S/4HANA Business Use Cases: HR and Workforce Engagement

36 More S/4HANA Information
Since S/4HANA cannot be described in just one blog post, ASUG and SAP will be publishing much more on S/4HANA and Enterprise Management. For right now, here are some places to go: ASUG Briefing | What Is S/4HANA Enterprise Management? ASUG CEO Geoff Scott | The Choice Is Yours: Say Hello to SAP’s New ERP ASUG Kevin Reilly | Whatever Happened to SAP Simple Logistics? SAP HANA: It’s About Transformation, Not Speed Join ASUG’s S/4HANA Special Interest Group Members can join our S/4HANA Special Interest Group and get all the latest information.

37 ASUG Community & Membership

38 Join the SAP HANA International Focus Group (iFG) Jam Community
Join the SAP HANA International Focus Group (iFG) Jam Community! This exclusive community provides a single, central global location for unique SAP HANA updates only available to our members. Benefits include: Access to private & selected webinars with SAP HANA Experts! On-demand recordings and slides from many popular topics (i.e. HANA SPS10, Dynamic Tiering, Modeling, Hadoop Integration, etc.) SAP TechEd updates / sessions specific to SAP HANA Early access to SAP HANA related product updates Unprecedented global networking around SAP HANA topics Insights from SAP HANA experts from around the world Join during Fall 2015 Months of Service and SAP donates $1 for every new member. Click this! Link to HANA iFG Community - Click HERE if you’re already a member.  If not, click this for an invitation to join or if you have any questions!

39 Questions and Answers

40 Kevin Reilly Team Reilly, LLC

41


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