1. Building the Business Case for S/4HANA What is it all about
Building the Business Case for S/4HANA What is it all about? What should we do?
Kevin Reilly, ASUG Community Advocate S/4HANA & HANA Platform

2. What you will learn today
S/4HANA Introduction
Differences between Suite on HANA and S/4HANA
Deployment Options
The S/4HANA Implementation
Migration planning
Example migration schedule
The S/4HANA Business Case
Components of a good business case
Business benefits
Example business scenarios

3. S/4HANA Introduction

4. What is S/4HANA? The successor to SAP R/3 and SAP Business Suite
New SKU and Code Fork
Available on the SAP HANA database
S/4HANA themes:
Renewed interface with Fiori UX
Simplified structure with SAP HANA
Cloud deployment first

5. SAP R/3 vs S/4HANA SAP S/4HANA SAP R/3 Runs on AnyDB
Built for lowest capability database
Limited use of database functionality
Client/Server SAPGui User Interface
SAP R/3
SAP HANA only
Built using all capabilities of SAP HANA
Full use of database functionality e.g. geospatial, graph
Fiori User Experience
SAP S/4HANA

6. S/4HANA Deployment Options
Cloud
Shared HANA multi-tenant DB
HANA Cloud Platform Extensions
Quarterly Release Schedule
100% Managed by SAP
Automatic Updates
On-Premise
On-Premise or Hosted
ABAP Customization
Yearly Release Schedule
Managed by Customer/Partner
Update schedule defined by customer

7. SAP S/4HANA Roadmap
1503
1506
1509
1511

8. SAP S/4HANA Customer Journey

9. The S/4HANA Implementation

10. The S/4HANA Roadmap S/4HANA roadmap varies Existing ECC Environment
Upgrades, Patches, Unicode Conversion
Test Management, Change Management
Custom Code Remediation & Reduction
Data Reduction & Near-line Storage
Build of technical readiness
Hardware Procurement
SAP BW or Agile Datamart

11. The S/4HANA Implementation
2015
2016
Roadmap
Sandboxes
HW Procurement
BW Housekeeping
BW Near-Line Store
SAP BW on HANA
Real-Time Analytics
Solution Manager
Custom Code Remediation
ECC Housekeeping
Test Management
Suite on HANA
S/4HANA
Cloud Migration
Year End

12. The Business Case

13. Components of a business case
Better Business Engagement
Improved Morale
Customer Satisfaction
Reduction in Days Outstanding
Reduction in batch schedule
Reduction in Stock
Reduction in Hardware Cost
Reduction in Project Costs
1. Financial
2. Quantifiable
3. Measurable
4. Observable
Tip: try to move benefits .
from Observable  Measurable  Quantifiable  Financial

14. Quantifying benefits Pilot / PoC Reference Sites Benchmarking
Compare against similar companies
SAP Value Engineering
Services organizations provide simulation using your business conditions
Validate based on experience of others
Relatively inexpensive
Verify capabilities
Solidify Business Case
Pilot / PoC
Reference Sites
Benchmarking
Simulation

15. Business benefits matrix
Doing new things
Doing things better
Stop doing things
Financial
Reduction in annual maintenance costs of hardware and infrastructure
One time reduction in stock
Increase total shopping cart size and value
Reduced overtime due to less integration pressures
DBA Tasks
Quantifiable
Reduced project costs
Reduction in SLA misses for data availability
Measurable
Increased adoption
Shorter development time due to simplification of the architecture
Simplification of the solution stack as BWA Blades removed
Observable
Mix non-SAP and SAP data into one data model in real-time
Ability to navigate from company level to document level in one report
30x Improved average query time leads to faster and better decision making and support

16. Where to add capabilities and value
Finance soft close
Planning and predictive finance
Marketing to audience of one
Material Requirements Planning (MRP)
Advanced Available to Promise (ATP)
High-volume inventory backflush
Engage talent across the organization
HR compliance across the organization
Continuous cross-system control monitoring
Fraud detection

17. Example: finance soft close
Description: A traditional measurement of the finance organization is the speed at which a company closes its books. In benchmarking studies, SAP Value Engineering found that the top quartile–performing companies achieve the annual financial close in 26% fewer days than their peers, resulting in 61% lower General Ledger and closing costs.
Industry relevance: Cross-industry
Drive one common view of financial data to help ensure enterprise-wide consistency to minimize reconciliation
Enable real-time processes for instant insight to make timely, relevant decisions
Use prediction, simulation, and analysis to evaluate financial implications of strategic business choices
Universal journal for both financial and controlling data
On-the-fly aggregation of transactional tables
Central finance to consolidate many back ends
Real-time oversight of close progress
Real-time insight into financial results
Continuous intra-month processes
SAP S/4HANA, on-premise edition
SAP S/4HANA, cloud edition
SAP Simple Finance solution
400 hours cut from period-end close
86% faster real-time analytics
2.5x faster cost postings *
*SAP software implementation

18. Business Process View: Finance soft close
Traditional system
With SAP S/4HANA
Close batches
Consolidation batches
Reporting on-demand
Initial period
Close & consolidation
Initial period
Close & consolidation
The complexity found in decision making, process execution, and IT architecture has a high cost. The illustration on this slide shows specific examples of complexity in finance, and what results.
Decision making: Finance has to wait for experts (usually in IT) to gather and prepare data to analyze. By the time this is done, the problems finance is trying to discover and diagnose have often become unmanageable.
Process execution: Today’s batch-oriented processes, like period-end close, not only suffer from the inherent latency of a batch operation, they also rely on manual reconciliation between finance and controlling systems. The result is that there is no time left in a period to check for errors or even simulate what would happen under different conditions, such as an acquisition, divestiture, or reorganization.
IT architecture: Because there has been little structural change in finance systems, IT must spend time to create interfaces and reporting layers to help bend the business into the predefined structure demanded by the system. As a result, businesses cannot really optimize the way they work. If they do reorganize, this creates even more of a burden on one-off interfaces or reporting structures to handle the differences.
All this complexity is not trivial. It eats into more than 10% of profits.
With traditional system:
Close activities don’t begin until period end
Multiple batch-run dependencies
Batch bottlenecks that delay downstream
High error-correction efforts
Complex issues postponed until after close
Time-pressured resolutions
Delayed visibility into reporting
With SAP S/4HANA:
Real-time KPIs
Elimination of end-of-period batch
Continuous intercompany reconciliation
Continuous financial reporting visibility
Line-item detail reconciliation
Automation for routine tasks
Full management visibility of close tasks
Traditional
With SAP S/4HANA
Process excellence

19. Business Scenario Recommendation Tool
Easy and Free of Charge
Intuitively get recommendations for business scenarios based on your system and industry
Efficient
You only spend minutes to request a report
Transparent
You’ll get a list of relevant business scenarios and other recommendations
Request a free report at

20. Key Takeaways

21. Key Takeaways HANA is not just about speed. It’s about process change.
All migrations to S/4HANA need OCM support and attention
Analyze S/4HANA functionality for process improvements
Update training materials to include Fiori UX changes
Potential reduction in technical support staff
HANA Basis work can be less
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
Migration to cloud moves selected headcount to cloud provider

22. Key Takeaways Value Realization Collaboration Orchestration
Anchor initiatives and projects to explicit value targets
Ensure post-project value realization is tracked
Establish simple & effective Portfolio Management tools and processes
Collaboration
Active governance and collaboration between IT and the business customers are key components
Structure incentive systems to encourage collaboration & discourage silos
Orchestration
Cloud applications alter how application portfolios fit together
Engage the entire organization in mission-critical initiatives
Establish clear project execution tools, and roles & responsibilities

23. 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
Upcoming November release
Was called Simple Logistics; will be renamed
Leaked information says “Enterprise Management”
Expands the value-add into rest of enterprise
Simplifies the IT workload
Less DBA work for BASIS folks
Smaller footprint of database
Simplifies the Processes for just about everyone else

24. Where to find more information
sap.com/s4hana
SAP Activate
scn.sap.com/community/s4hana/
SAP S/4HANA Cookbook
S/4HANA SAP Best Practices

25. Upcoming Events for SAP Controlling
Financial Excellence Forum
October 7 – 8, 2014
Newtown Square, PA
e/SECHPE512_38870_ban .htm
Controlling 2014
September 21-24, 2014
San Diego, CA
corp.com/
Don’t miss out
register today !!!

26. 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, please for an invitation to join and/or if you have any questions!

27. Questions and Answers

28. Kevin Reilly
Team Reilly, LLC