Building the business case forSAP S/4 HANAJohn Appleby
GM, Bluefin Solutions Inc.
Carl Dubler
Product Marketing Director, SAP
2
• S/4HANA Introduction Differences between Suite on HANA and S/4HANA Deployment Options
• The S/4HANA Roadmap Migration planning Example migration schedule
• The S/4HANA Business Case Components of a good business case Business benefits Example business scenarios
What you will learn today
S/4HANA Introduction
4
• 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
What is S/4HANA?
5
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
SAP R/3 vs 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
http://www.sap.com/bin/sapcom/en_us/downloadasset.2015-03-mar-02-23.sap-s-4hana-frequently-asked-questions-pdf.bypassReg.html
1503 1506 1509 1511
8
SAP S/4HANA Customer Journey
http://www.sap.com/bin/sapcom/en_us/downloadasset.2015-03-mar-02-23.sap-s-4hana-frequently-asked-questions-pdf.bypassReg.html
The S/4HANA Roadmap
10
• 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
The S/4HANA Roadmap
The S/4HANA Roadmap
Custom Code Remediation
BW Near-Line Store
2015 2016
Suite on HANA
Solution Manager
HW Procurement
Roadmap
Cloud Migration
BW Housekeeping
ECC Housekeeping
Year End
SAP BW on HANA
S/4HANA
Sandboxes
Real-Time Analytics
Test Management
The Business Case
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
13
Tip: try to move benefits from Observable Measurable Quantifiable Financial
Quantifying benefits
• 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
BenchmarkingSimulation
14
Remember: try to move benefits from Observable Measurable Quantifiable Financial
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
15
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
Top capabilities
Unique value of SAP S/4HANA
Business innovations
SolutionsQuantifiable value
Use case
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
SAP S/4HANA, on-premise edition SAP S/4HANA, cloud edition SAP Simple Finance solution
Real-time oversight of close progress Real-time insight into financial results Continuous intra-month processes
400 hours cut from period-end close 86% faster real-time analytics 2.5x faster cost postings*
*SAP software implementation
Closebatches
Consolidationbatches
Initial period Close & consolidation
Reporting on-demand
Close & consolidationInitial period
Business Process View: Finance soft close
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
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
Traditional system With SAP S/4HANA
Traditional With SAP S/4HANA
Process excellence
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 www.s4hana.com
John [email protected]@applebyjbluefinsolutions.com/johnappleby
Carl [email protected]/people/carl.dubler