How the SAP Model Company for Chemicals can speed up your ... · SAP Value Assurance for SAP...

CUSTOMER

Dr. Heidger Marx, Principal Industry Advisor ChemicalsSAP Digital Business Services, Energy & Natural Resources

How the SAP Model Company for Chemicals can speed up your SAP implementationsInternational SAP Conference for Chemicals, Prague, October 18th, 2018

2CUSTOMER© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Service Overview

Scope

Delivery Approach

Agenda


Digitization is Happening NOW

Over 2 billion people now on social networks.

81%of CEOs think mobile technologiesare strategically importantfor their business. 4

4 Annual Global CEO Survey, PWC, 2015

of CEOs think socially enabled business processes are strategically important for their business. 4

61%

Cloud

Social Networks

Mobility

Internet of Things

Big Data Business NetworksTechnology

2 Technology Adoption Report: Business Networks, Ardent Partners, 20141 ScienceDaily. ScienceDaily, 22 May 2013 3 Internet of Things (IoT) 2013 to 2020 Market Analysis, 2013

$85 billion

Growth in cloud-based software as a service (SaaS) will continue at 20% each year through 2018, when the global market could reach nearly $85 billion. 5

5 From box to cloud, McKinsey 2015

Of the world datahas been generatedduring the last 2 years 1

Things will be connectedby the end of 2020 3

90%

212B

Growth in adoption of business networks in next 2 years 240%

http://www.pwc.com/gx/en/ceo-survey/2015/

http://cporising.com/2014/10/09/introducing-ardent-partners-technology-adoption-report-on-business-networks/

http://www.sciencedaily.com/releases/2013/05/130522085217.htm

http://cts.businesswire.com/ct/CT?id=smartlink&url=http://www.idc.com/getdoc.jsp?containerId=243661&esheet=50721954&newsitemid=20131003005687&lan=en-US&anchor=Internet+of+Things+(IoT)+2013+to+2020+Market+Analysis:+Billions+of+Things,+Trillions+of+Dollars&index=4&md5=59da372afbdafaa6e8563b0f5d6412f0


Transformation Needs to Happen NOWto stay ahead of competition

1) answer of more than 80% of CEOs in “Annual Global CEO Survey”, PWC, January 2015

50% of the companies in current present S&P500 will not be there in 10-years-time

McKinsey, “Creative Destruction”

CEOs see the potential…

60% expect 15%–50% of their earnings growth in the next 5 years to come from technology-enabled business innovations.

McKinsey study, 2013

86% say technology advances will transform their business over the nextfive years.

CIO Journal, January 2015

… and see a clear vision and plan as key success factors1

A clear vision of how digital technologies can help achieve competitive advantage

A well-thought-out plan for digital investments, including defining measures of success


SAP’s Digital Platform

SAP Model CompanySAP S/4HANA Value Assurance

SAP Digital Innovation Lab

SAP Model Company

Presenter

Presentation Notes

Easier transformation Left side: ERP world: from ERP / Business Suite S/4HANA Right side: openness, cloud platform with apps (e.g. Leonardo), external collaboration Middle: Digital Boardroom


Time to value is key in assuring a successful digital transformation

Long, risky and costly implementation times

Line-of-business (LoB) and industry-specific know how recognized as a need, not just nice to have

Fast-changing business challenges requiring a flexible solution

SAP Model Company service to deliver reference solutions from SAP that are: Preconfigured and

comprehensive Tailored to an industry or line

of business with end-to-end business processes

Enriched with real-life experience, delivered as an engineered service

Accelerated innovation adoption and simplification of the digital transformation

THEchallenge

Transform to SAP S/4HANA

Accelerate implementation for faster time to value

Adopt early and quickly – and free up resources for innovation

THEsolution

THEoutcome


The SAP Model Company

pre-packaged, ready-to-use, comprehensive reference solution, tailored to an industry or line of business

state-of-the-art applications and proven best practices and encapsulates the experience from successful, real-life digital transformation projects

Embedded in an overall transformation road map and delivered as a service, a model-company driven approach enables you to reduce cost, decrease risk, and accelerate adoption during discovery, preparation, exploration, and realization activities


The SAP Model Company Building Blocks

Best Practice

Industry Reference Architecture

Engineered Services Technology / Functional

SAP Solution Manager Documentation

Pre-Configured Processes

Sample Data

standardized professional service with accelerators for fixed outcome and fixed price

sample master data and transactional data to showcase the business

SAP S/4HANA, Hybris, Success Factors, Industry Solutions

Comprehensive business process documentation, methodologies and step-by-step approaches combining knowledge of customer projects

template solution for an architecture providing business capabilities to run end to end operations

preconfigured steps for operating the business with SAP Software

control, monitoring and transport for the landscape

SAP Software


Projected Reduction in Effort using SAP Model Company Approach

Traditional Project Implementation

Approach with Model Company

Explore 20 – 25 Weeks*

6 Weeks

Build: 30 - 45 weeks*

Build: 12-16 weeks*

Import the Model Company to customer landscape

Target: Reduce

Blueprint efforts upto

80-100%

Target: Reduce

Realization efforts upto

50%

Target: Reduce Testing

efforts upto 30%

Model Company KPI’s

Integration Validation

* Estimated Efforts

Presenter

Presentation Notes

Overall savings around 30-35% (measured with World Template) Because there are no theoretical discussion at the beginning, system is available from DAY 1!!


SAP Value Assurance for SAP S/4HANA powered by the Model Company

SAP Model Company is the baseline allowing Clients and Partners to differentiate on to accompany and ensure success for your journey of digitization

SAP Model Company – Implementation framework Project with the intention to go-live Integration into existing customer landscape Different deployment options

(SAP HANA Enterprise Cloud / on-premise / and the like) Project feedback to continuously improve SAP Model Company

SAP Model Company – Prototype and design Dedicated proof of concept and sandbox landscape for SAP Model Company Different deployment options

(In the cloud / Amazon Web Services / on premise) Landscape that can be configured

SAP Model Company – Discovery Introduction of SAP Model Company Guided tours and meet-the-expert sessions Read-only, generic demo Platform managed by SAP Fast and ready access (such as, less then 24 hours)

INVO

LVEM

ENT

OF

SAP

ENGAGEMENT SCOPE

Plan and safeguard

Acceleratetechnical implementation

Acceleratefunctional realization

Innovate

1

2

3

4

C

A

B

3

1

Presenter

Presentation Notes

Value Assurance: MC4C is only a building block of the entire Value Assurance Story… to bring the customer onto S/4HANA!!


SAP Model Company: Innovation adoption made simple

• Get a jump-start for your implementations• Deploy SAP innovations fast, simple and flexible• Reduce non-value adding tasks to a minimum

• Use state of the art architecture and best practices• Minimize risk with proven end-to-end solutions• Leverage business and implementation guides

• Reduce complexity and use ready-to-run appliances• Accelerate and get your model company in days• Minimize costs with cloud based deployments

Fast time to value

Predictable results

Simple on-boarding


Service Overview

Scope

Delivery Approach

Agenda


SAP Model Company for Chemicals – Scope (version 4 on 1709)Over 1200 Processes and 149 end-to-end Scenarios

Based on Best Practices

SAP Solution Manager Documentation

Supplementary Components

o SAP S/4HANA Chemicals trial with industry best practices US 1709 – detailso SAP Best Practices for S/4 HANA US 1709 Baseline – further details

o Weigh & Dispenseo Environment, Health and Safety - EHSo Manufacturing Performance Management – MIIo Global Batch Traceability – GBT (option)o SAP Leonardo IoT Scenario (option)o Digital Boardroom (optional additional service)

o Business Process Master List, Business Process Flows, Business Capability

Model, Reference Architecture, End to End Business Scenarios, Configuration

Guide, Test/Demo Script

Important - The Model Company is build on the SAP S/4HANA Chemicals trial with industry best practices for S/4HANA 1709.

Some processes from the Best Practice Baseline were specifically tested within the Best Practice Chemicals (with baseline master data instead of chemicals

master data). This is why the Best Practice Baseline is listed here. Further processes from the Best Practice Baseline may be used, but they were not tested in

an integrated way.

Presenter

Presentation Notes

1709 is the last version of Best Practices for Chemicals, that underlies the Model Company) Plan: Interoperability between different industry-MC’s: select combinations from different industry scenarios – not before end of 2019: How? Bought 1709 uplift to 1809 (with reduced pricing, about 50%)

https://rapid.sap.com/bp/BP_CHEM

https://rapid.sap.com/bp/BP_OP_ENTPR


SAP Model Company for Chemicals – Scope Options

A service scope option is a combination of scope items that can be added on top of the standard package.

Scope options Required Scope items / Functionality delivered

M Mandatory Mandatory Manufacturing Weigh & Dispense Manufacturing Performance Management – MII Best Practices content

Asset Management Sustainability

Product Safety and Stewardship (Best Practices content) Environment, Health and Safety - EHS

Procurement Sales, Marketing & Service Supply Chain Execution Supply Chain Planning Finance and Controlling

01 Scope Option GBT Optional Global Batch Traceability – GBT Scenarios

02 Scope Option Leonardo IoT Optional SAP Leonardo IoT for Distributed Manufacturing – IoT Scenario


SAP Model Company for ChemicalsWhat is SAP Manufacturing Performance Management?

Measure the Overall Equipment Efficiency with MII and use this as starting point for Industry 4.0 and SAP Leonardo


SAP Model Company for ChemicalsWhat is SAP Global Batch Traceability?

See the networks of batches from purchase orders, across production and transportation to deliveries – across systems


Key features

• Sensor data for accurate tank inventory levels

• More accurate storage and transport planning

• Reduce spill size, costs, scrap

SAP Model Company for ChemicalsWhat is SAP Leonardo IoT?


SAP Model Company for ChemicalsWhat is SAP Digital Board Room*?

Total Transparency 360° view of your business One source of truth (KPI definition

and data) Always up to date (“real-time”) Any detail available

Agile Decisions Fewer “adjournments” due to

missing information No discussion of data quality

and KPI consistency Instant simulation of alternative

scenarios e.g. along value driver tree

Simplified Execution No tedious alignment on

presentation documents beforehand Full history available including

decisions and comments Consistent tracking of follow-ups

* not in scope of the Model Company


SAP Model Company for ChemicalsWhat is SAP Solution Manager?

Over 1200 processes (incl. process variants) and 149 end-2-end scenarios are documented with diagrams, test scripts, and configuration documents from level 1 to level 6 (transaction). From here you build your own processes and scenarios.


SAP Model Company for Chemicals – What is New in Version 4?

Additional Scenarios from SAP Best Practices for Chemicals 1709

✅ Embedded Transportation Management ✅ Embedded EWM✅ Intercompany, extended Supply-Chain✅ Advanced ATP✅ Fiori Reporting and Analytics✅ Additional Product Safety Scenarios✅ Advanced Variant Configuration✅ PP/DS Scenarios

Additional MC-specific enhancements

✅ SAP Leonardo Scenario: IoT Tank Level Monitoring (option)

✅MII: enhancement of OEE scenario to include confirmations from MII

✅ Embedded Transportation Management: Inbound scenario in Procurement

Changes to the landscape

✅ Applications included: S/4 HANA, MII✅ Other components as new scope options

✅ Global Batch Trace✅ SAP Leonardo IoT

Presenter

Presentation Notes

V4: available, only two servers necessary now (Changes to landscape!), eTM, eEWM now finally on customer request V5: migration to prepare for interoperability (Q4 2018) V6: IOM scenarios (Q1 2019: PdMS aus IOM & ATTP for LS)


SAP Model Company for Chemicals – Scenarios (1/7)

Business Priority Scope Item Scenario(Preconfigured content and delivery accelerators)

Plan to Product Manufacturing

Model Company for ChemicalsMII - Manufacturing Performance ManagementWeigh & Dispense - Scale TestWeigh & Dispense - Weigh with PI SheetWeigh & Dispense - Weigh with Weighing Cockpit in S/4HANA

Best Practices for Chemicals 1709 Bulk Manufacturing (without PI Sheet)Make-to-Order (Process Industry)Multiple Product Campaign Run incl. Material Quantity Calculation Active Ingredient Processing Repackaging Relabeling Bulk Manufacturing (with PI Sheet) Blending Process with Material Quantity Calculation Inbound Storage Tank Management Process Order with Co-Product and Quality ManagementWork-in-Process (WIP) Batch Repetitive Manufacturing with Quality ManagementMake-to-Stock (Process Industry) with staging using PMR in EWM Subcontracting (internal) Tank Trailer Filling Engineering Change Management with Engineering Records Demand-Driven Buffer Level ManagementMTS Variant Configuration utilizing classical Variant ConfigurationMTS Variant Configuration with Material Variants utilizing Advanced VariantMake to Order Variant Configuration utilizing Advanced Variant Production Subcontracting - External Processing(continued on next slide)




Plan to Product Manufacturing (cont‘d.)

S/4 HANA Best Practices 1709 BaselineMaterial Requirements Planning Rework Processing (Stock-Manufacturing Material)

Plan to Product Supply Chain Planning

Best Practices for Chemicals 1709 Bottleneck Scheduling with Top-down / Bottom-Up Approach Feasible Scheduling Plan

Request to Service Asset Management

Best Practices for Chemicals 1709 Refurbishment ManagementOverhaul ManagementWork Clearance ManagementOperational Maintenance Preventive Maintenance Investment Management in Plant Maintenance Refurbishment Management with Sub ContractingMulti Resource Scheduling Calibration Processing




Procure to Pay Procurement

Best Practices for Chemicals 1709 Subcontacting (External) Consumable Purchasing Purchase Contract Scheduling Agreements in Procurement for Consignment and Stock Material Procurement of Direct Materials Ariba - Purchase Order to Invoice Integration with Procurement Requisitioning Supllier Classification and Segmentation Procurement of Pipeline MaterialsQuality Management in Procurement Activity Management in Procurement Serial Number Management Ariba - Sourcing Integration Request for Price Supplier Evaluation and Performance Monitoring Ariba - Quote Automation Integration for Procurement Procurement of Services Intercompany Stock Transfer Intracompany Stock Transfer SAP S/4HANA for Legal Content

S/4 HANA Best Practices 1709 Baseline Real-Time Reporting and Monitoring for Procurement Predictive Analytics for Contract Consumption in Procurement




Order to Cash Sales, Marketing & Service

Best Practices for Chemicals 1709 Sell from Stock Customer Returns Free of Charge Delivery Debit Memo Processing Sales Contract Management Sales Order Processing (incl. PoD and CoA) Samples Processing Sales Order Processing with Customer Down Payment Credit Memo Processing Sales Order Processing with Collective Billing Sales Processing using Third-Party with Shipping Notification Sales Processing using Third-Party without Shipping Notification Sales of Non-Stock Item with Order-Specific Procurement Totes Handling Invoice Correction Process with Debit Memo Invoice Correction Process with Credit Memo Returns and Complaints (incl.QM) Consignment Sales Third party with subcontracting Sales Order Entry with One Time Customer Sales Rebate Processing Intercompany Sales Order Processing - Domestic Advanced Available-to-Promise Processing Delivery Processing without Order Reference Accelerated Customer Returns SAP Fiori Analytical Apps for Sales

(continued on next slide)




Order to Cash Sales, Marketing & Service (cont’d.)

S/4 HANA Best Practices 1709 Baseline Sales Order Fulfillment Monitoring Order-to-Cash Performance Monitoring Planning Apps for Sales

Order to Cash Supply Chain Execution

Model Company for Chemicals Embedded TM – Inbound Scenario

Best Practices for Chemicals 1709 Return to Vendor Physical Inventory – Inventory Count and Adjustment Stock Handling - Rework, Scrap, Blocked Stock Basic Warehouse Inbound Processing from Supplier Physical Inventory with EWM Basic Warehouse Outbound Processing to CustomerQuality Management in Stock HandlingOutbound Logistics Optimizer Based Planning and Carrier SelectionOutbound Logistics with Transportation Management Advanced Warehouse Outbound Processing to CustomerMultiple Product Campaign Run with Cleanout order

S/4 HANA Best Practices 1709 Baseline Initial Stock Upload for Warehouse Replenishment in Warehouse Scrapping SAP Fiori Analytical Apps for Inventory and Warehouse Management




Plan to Product Sustainability

Model Company for Chemicals Safety Incident Recording Health Risk Assessment Exposure Monitoring Chemical Approval

Best Practices for Chemicals 1709 Product Safety Dangerous Goods Management Substance Volume Tracking (Sales) Substance Volume Tracking (Purchasing)Global Label Management Substance Volume Tracking (Production) Dangerous Goods Management - Mixed Load Check SERC - Secondary Data Determination SERC Installation Recipe Development Advanced Ingredients Replacement with Recipe Finder




Core Finance Finance and Controlling

S/4 HANA Best Practices 1709 Baseline Accounting and Financial Close Credit Management Accounts Receivable Accounts Payable Advanced Bank Account Management Advanced Cash Operations Profitability and Cost Analysis Internal Order - ActualOverhead Cost Accounting Standard Cost Calculation Period-End Closing - Plant Inventory Valuation for Year End Closing Accounting and Financial Close – Parallel Ledger Asset Accounting Asset Under Construction Asset Under Construction - Parallel Ledger Direct Debit Period End Closing - Maintenance OrdersMachine Learning - SAP Cash Application Integration Managing Material Price Changes and Inventory ValuesGeneral Ledger Allocation Cycle Cash Journal Event-Based Revenue Recognition - Sell from Stock (S/4HANA Best Practices for Cloud 1805)

Best Practices for Chemicals 1709 Activate Document Splitting for Chemicals


SAP Model Company for Chemicals – Scenarios of the Scope Options


Plan to Product Scope Option 01: GBT

Model Company for Chemicals Purchasing with Global Batch Traceability Production with Global Batch Traceability Sales from Stock with Global Batch Traceability Analysis of Batch Genealogy

Plan to Product Scope Option 02:SAP Leonardo IoT

Model Company for Chemicals IoT Tank Level Monitoring


SAP Model Company for Chemicals

Additional Benefits✅ Installation support✅ Customer Enablement (“Discovery”)✅ Explanation of all processes✅ Integration of all included components done✅ Content is already in SAP Solution Manager 7.2✅ The Model Company fully integrated into the SAP

Activate Methodology✅ On top customers can order a service for the fit/gap

analysis

Mod

el C

ompa

ny fo

r C

hem

ical

s

Global Batch Traceability (option) Environment, Health & Safety

SAP Leonardo IoT (option)

Weigh & Dispense

Manufacturing Performance Management

Digital Boardroom (optional additional service)

Additional Pre-Configured and Ready-to-Run Processes

SAP Best Practices for Chemicals 1709

Presenter

Presentation Notes

As a recap


Service Overview

Scope

Delivery Approach

Agenda


SAP Model Company Delivery

D-, Q-, and P-

system

Customer buys SAP Model Company service Sandbox system

Cloud or on-premise

Receives link to

SAP Cloud Appliance Library

Customer copy

1

4

Cloud provider

SAP Model Company services

Existing system

SAP S/4HANA Value Assurance or Advanced Deployment

5

3

Partner

Customer

2

Discovery, fit-gap analysis

Blu-ray discs

Presenter

Presentation Notes

Cloud provider for the CAL: Amazon, Microsoft, Google


SAP Model Company Delivery

Customer

SAP Cloud Appliance Library

Amazon Web Services

MS Azure

Google

On PremiseCloud Hosting

Blu-ray discs

SAP HEC

SAP Value Prototyping

customer owned / managed account

SAP Value Assurance Service Packages

SAP managed account / SAP hardware

Validation

Delivery

SAP will safeguard the last step of the transformation with Value Assurance Service Packages and Advanced Deployment Packages.

SAP Cloud Appliance Library provides access to an online library of preconfigured SAP solutions that can be instantly deployed in cloud environments

You can purchase your industry Model Company from a cloud environment, access it immediately and let SAP or your preferred partner conduct the fit-gap right away. In the cloud or on-premise.

SAP Advanced Deployment

Presenter

Presentation Notes

HEC: SAP Value Prototyping or on-premise


System Landscape

Presenter

Presentation Notes

Reduced to two servers for the entire MC4C, only if scope options are needed, you will need more servers…


Delivery Approach: Typical Project PlanMain project activities

SAP involvement

Customer involvementKickoff and Workshop Preparation

Installation

Expert WorkshopsIn Parallel

Closing

4 - 6 Weeks

START

Prepare

8 days

2 days

20 days

1 day

Additional lead time for the HEC landscape build


Responsibilities

Installation support for the Model Company Provide experts for the process workshops Document workshop results as input for fit/gap

analysis

(in addition, the customer can order a service for the fit/gap analysis to prepare for the implementation project)

What does SAP do?

For the installation Order SAP HEC or Provide a AWS or MS Azure account or For on-premise install the Model

Company on your sandboxGet your test licenses where needed

For the process workshops Provide a team with the necessary

expertise Provide the required facilities Prepare, execute, and post process the

workshops

What do customers do?


SAP Model Company – Value Proposition and Benefits

Reduce total costs of implementation

Start your digital transformation journey

Benefit from latest innovations in business software to help you in the digital transformation journey

Decrease implementation risks

Decrease implementation time

Minimize customizations

Preconfigured solution ready to run as sandbox or demo

Ability to rapidly build demo environments and proofs of concept with reference lookup for standard configuration in the cloud or on premise

With end-to-end processes containing proven LoB/Industry best practices and reference architecture

Starting with SAP standard software and operating it through the entire software lifecycle

Foundation for your fit-gap analysis, to accelerate your deployment

If you want to… You benefit from…


Don’t wait! Start NOW!Next steps and more information

Useful linksTransition to SAP S/4HANA on sap.com:http://go.sap.com/services/transition-to-s4hana.html

Blog post on SAP Community Network:From Your Current State to Digital with SAP S/4HANA Value Assurance

News article (interview with Michael Kleinemeier):SAP Digital Business Services: Support Evolves with SAP S/4HANA

About SAP Digital Business Services:www.sap-digital-business-services.com

Get started with your service packageand start your smooth journey to SAP S/4HANA withSAP Digital Business Services today

Build your SAP S/4HANA journeyIdentify areas of scope and define your transition path with the discovery workshop for SAP S/4HANA

Contact / follow us on:

http://go.sap.com/services/transition-to-s4hana.html

http://scn.sap.com/community/events/sapphire-now/blog/2016/05/17/from-your-current-state-to-digital-with-sap-s4hana-value-assurance

http://news.sap.com/sap-digital-business-services-support-evolves-with-sap-s4hana/

http://www.sap-digital-business-services.com/

http://www.youtube.com/SAPSupport





https://twitter.com/@SAPDigitalSvcs

https://twitter.com/@SAPDigitalSvcs

http://de.slideshare.net/SAPServices

http://de.slideshare.net/SAPServices

http://scn.sap.com/community/software-support-and-maintenance



mailto:[email protected]?subject=Model%20Company

http://www.linkedin.com/groups/SAP-Enterprise-Support-3913555



https://www.facebook.com/SapProductSupport

https://www.facebook.com/SapProductSupport


Thank YOU for your attention!

Contact:

Dr. Heidger MarxPrincipal Industry Advisor ChemicalsDBS ENR [email protected]+49-160-889-6266

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