STREAMlined IT powered by SAP S/4HANA

SAP Summit 2016

Teja Ullrich – Head of Corporate IT - Applications, HOERBIGER Holding AG

Andreas Dörner – CEO, Senior Partner, CNT Management Consulting

May 11, 2016 2STREAMlined IT powered by

SAP S/4HANA Enterprise Management

Agenda

Initial Situation

Decision Path for S/4HANA (Release 1511)

Major Benefits for IT

Collaboration with CNT Management Consulting

May 11, 2016 3STREAMlined IT powered by

SAP S/4HANA Enterprise Management

Overall HOERBIGER Corporate IT Applications

Global setup

About 7,000 employees

More than 130 locations in 54 countries

Key figures for HOERBIGER

1,088 [MEUR] Sales in 2014

Conglomerate with 4 main process categories

Serial, Order-based, Service and One-Fit

Corporate IT is oriented globally for best Support The IT Organization is aligned with global teams using global processes

Global IT organization

112 Employees

15 IT locations in 12 countries

Key figures for IT Applications

18 SAP Systems

2,450 SAP Users in more than 75 locations

24 SAP rollouts performed in 2015

May 11, 2016 4STREAMlined IT powered by

SAP S/4HANA Enterprise Management

Processes

STREAM will make HOERBIGER fit for the Future

Systems People

STREAM– Amajor Change Project for HOERBIGERClick to add a subtitle

STREAM-lined and optimized

business processes creating a

better way of working together

A STREAM-lined, integrated

and lean IT architecture based

on SAP ensures working more

effectively in and across

business units

Focusing on an activity-

oriented approach and value

generation sets the future

mainSTREAM

May 11, 2016 5STREAMlined IT powered by

SAP S/4HANA Enterprise Management

Agenda

Initial Situation

Decision Path for S/4HANA (Release 1511)

Major Benefits for IT

Collaboration with CNT Management Consulting

May 11, 2016 6STREAMlined IT powered by

SAP S/4HANA Enterprise Management

Simplified IT Landscape using SAP as Backbone

Definition of best option for HOE

regarding to the number of ERP

systems and clients

Structure

of ERP

landscape

Decision on how the new

structure will be implemented –

greenfield setup or reuse of

existing system

Setup

of ERP

system

Selection of platform (e.g. SAP

ERP, S4/HANA) and data base

(ASE, HANA) which has to be

used

Platform

Top-down target IT architecture aimed at reduction

of ERP systems and IT applications used

IT principles and guidelines to support process

workshops and requests for architecture deviations

~130 out-of scope

apps (e.g. AutoCAD)

~60 in-scope

apps (e.g. Bellin)

~15-20

ERPs1

~25-35

SAP

Not addressed in

STREAM

Today's focus

IT Backbone Infrastructure Target IT Architecture

May 11, 2016 7STREAMlined IT powered by

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Dimension Relevant Options

Structure

of ERP

landscape

Setup

of ERP

system

Platform

Clear Decision Path for ERP IT LandscapeSteering Committee decision made after financial, technical and strategic evaluation

One client for HOE

/ One system

One client per BM1

/ One system

One system

per BM1

New system

(greenfield)

Existing system

(reuse or upgrade)

New system

(copy of ECC 6.0)

SAP ECC 6.0 on

SYBASE ASE

SAP ERP Business

Suite on HANAor

SAP S4/HANA

Opt A

Opt B

1

2

3

1. Business Model

already

decided

already

decided

already

decided

May 11, 2016 8STREAMlined IT powered by

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Decision

One Client / One System decided as best Option

Less complex governance

structure and program

management

Best suited for common

solutions from business

perspective

Integral alignment of new

demands, centralized

configuration and development

Lowest IT investment and

operating costs

Individualized solutions to

address customized business

demands

Decentralized governance

with complex coordination

Higher effort to ensure

harmonization/standardization

Lowest need for alignment

and compromises between

business models

Highest IT investment and

operating cost

Sustainable foundation for

harmonization / standardization

of processes and data

1. Business Model

Only slightly more flexible in

terms of individualization, but

with high harmonization effort

Closest option to status quo,

but not economical and

contradicts STREAM objectives

1

One Client for HOE /

One System

One Client per BM1 /

One System

One System

per BM1

Imp

licati

on

s f

or

HO

E

May 11, 2016 9STREAMlined IT powered by

SAP S/4HANA Enterprise Management

New (greenfield) System decided as best Option

Implementation starts from the

newest SAP standard

Easier definition of new

harmonized processes

Lowest maintenance and

operating costs

All existing SAP systems have

to be migrated into the new

solution

Existing system settings can

be re-used easily

New process implementations

have to be aligned with

existing SBU processes to

ensure successful migration

Medium maintenance and

operating costs

All existing SAP systems have

to be migrated into the new

solutions

SBU has no need to migrate

to a new system (if STREAM

development remains closely

aligned with TOGETHER)

Master data consolidation

hard to achieve

Side effects may harm the

implementation of the new

harmonized/standardized

processes

All existing SAP systems have

to be migrated into the new

solution

Best support for the STREAM

principle of a standardized

and best practice solution

New system

(greenfield)

New system

(copy of ECC 6.0)

Existing system

(reuse, upgrade)

Set up of a new system but

reuse of existing system setting

and SBU processes

Closest option to status quo,

but is complex and error prone

in implementation

2

Decision

Imp

licati

on

s f

or

HO

E

May 11, 2016 10STREAMlined IT powered by

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Step 3 (new)

Three Steps necessary for a Platform DecisionNew module "Simple Logistics" released in November 2015

All new developments only on

SAP HANA, new features not

available on ASE platform, new

licenses necessary

Old vs New

Technology

New User Interfaces (simplified

GUIs) and new processes only

available on S4/HANA, no new

licenses necessary

Additional vs

Standard

functionalities

Three Decisions to be taken Step 1

SAP launched new module

"Simple Logistics (S-LOG)" in

addition to already state-of-the art

technology "Simple Finance

‘SFIN’"

New modul

launched

recently

Step 2

1Simple Finance, 2. Simple Logistics, 3. Graphical User Interface

old

new

Old User GUIs

No new Functionalities

New UI5 GUIs

New Functionalities

1503S-FIN

S-FIN

S-LOG 1511

May 11, 2016 11STREAMlined IT powered by

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SAP ECC 6.0 on SYBASE ASE

SAP ERP Business Suite2 on HANA

or SAP S4/HANA3

SAP HANA1 recommended due to higher FlexibilitySAP specified HANA as future platform for all applications

Imp

licati

on

s f

or

HO

E

Most proven platform with end of life in 2025

Lower costs of implementation

No further functional developments will be

delivered on this platform

Lower database performance

No new GUIs1 available

Only limited functionality for mobile applications

available

Upgrade or migration to HANA has to be started

latest in 2023

Proven platform (> 1.000 installations

worldwide)

High performant "In Memory" technology

Realtime reporting (online out of SAP System)

High performance planning capabilities

Supports new GUIs4 (S4/HANA)

Full mobile application support with modern

technology

“Simple” and HANA-only applications can be

deployed based on business needs

Higher investment costs (licenses)

Higher implementation costs

Proven platform, but no further innovation and

Already defined as "end of life"

Proven platform with the option to deploy

SAP innovations as needed

1. High Performance Analytic Appliance, 2. ECC 6.0 has been renamed for HANA, 3. SAP Business Suite 4 SAP HANA (latest version), 4. Graphical User Interface

already decided by SC

3

May 11, 2016 12STREAMlined IT powered by

SAP S/4HANA Enterprise Management

Agenda

Initial Situation

Decision Path for S/4HANA (Release 1511)

Major Benefits for IT

Collaboration with CNT Management Consulting

May 11, 2016 13STREAMlined IT powered by

SAP S/4HANA Enterprise Management

On Premise

Future IT Landscape is simplified clearlyProcess based, harmonized, STREAMlined

Cloud

HANADatabase and Integration Layer

S/4S-FIN,

S-LOG, S-PROD

POProcess

Orchestration

Salesforce

SuccessFactors

EDI

OEM

Business

Suite(ERP)

SAP Add

Ons

HANA Cloud Platform

Internet of Things (IoT)

Industry 4.0

Mobile

Applications

DMSOCR PDM

CAD

Others

Others

Integrated Business

Planning

Concur

MDG

May 11, 2016 14STREAMlined IT powered by

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Compressor Surveillance in rural Areas Data Transformation into S/4HANA

Remote wireless supervision of equipment

Early detection of problems and failures

Manage availability and run-time

Indicate combustion performance

New Business Models on the Horizon due to S/4HANA

Data collection via satellite

Realtime reporting out of S/4HANA

Integration of customer in information process

Predictive maintenance as new business model

Predictive Maintenance already in placeCurrent technology not integrated in ERP system

May 11, 2016 15STREAMlined IT powered by

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No unplanned Downtime

Collect “Data” and create “Information”

Optimized Profitability Technology Transformation

Insight into equipment

Proactive support

Close information gaps

KPI implementation

Recommendations

Reduce waste

Greater uptimes

Accurate planed data

Cloud computing

Shared IT services

Cross platform solutions

Implementation of standards

Industry 4.0 generates new OpportunitiesPilot Project with ATOS, TU Vienna and SAP already started

May 11, 2016 16STREAMlined IT powered by

SAP S/4HANA Enterprise Management

Agenda

Initial Situation

Decision Path for S/4HANA (Release 1511)

Major Benefits for IT

Collaboration with CNT Management Consulting

Project STREAM

Our Contribution

Business Process Analyses, Modelling and

ERP Template Build based on SAP S4 HANA

The Company

CNT Management Consulting was founded in

1999 in Vienna and evolved to one of the leading

consultancies in ERP design, template build and

deployment.

Employees: more than 140Locations: Vienna (AT)

Innsbruck (AT)

Linz (AT)

Graz (AT)

Wiesbaden (DE)

Munich (DE)

© CNT Management Consulting GmbH

Core Competences

International ERP Program – Change as consistent challenge

We accompany you with project methodology, professional project

management as well as change management and provide our know-how and

resources for your ERP program.

PLM Systems – Leading through integration

We integrate all systems along the product life cycle starting from design,

engineering and production until after sales service.

Financial and Treasury – Aspiration for orientation

We support the implementation of the financial and accounting processes as

well as the successful control of market and credit risks.

© CNT Management Consulting GmbH

Core Competences

Supply Chain Management – Think today about tomorrow

Our consulting offer is covering among other things the topics logistics as a

service, mobile solutions for your value-added chain and the handling of central

procurement processes.

Human Capital Management – Your success in focus

Improve the efficiency of your personnel processes by automation and use the

potential of your employees with the implementation of performance evaluation.

Business Intelligence – Our perspective is 360°

Together with you we implement reporting and planning solutions and mobile BI

applications. Benefit from the advantages of self-service BI, in memory

technologies and advanced analytics or social media analytics.

© CNT Management Consulting GmbH

Core Competences

Technology & Integration – The result of our work are stable solutions

Our experts design your system landscape with perspective. We support you

with the conception and development of customer enhancements of your

standard software.

© CNT Management Consulting GmbH

Our Contribution Project STREAM

Experienced Team

Methods &

Standards

Best Practice

Processes

SAP S4 HANA

know-how

Template and

Rollout

References

SAP S4 HANA know-how

Deep industry and best practice

process approach

SAP Fiori enablement for sFin and

sLog

Experienced Template Team

members with deep skills in SAP

design and a broad knowledge of

Rollouts

References from other

organizations who have

undertaken a similar exercise

Committed Individuals who will

execute the plan and drive this

project to success

SAP Fiori

enablement

© CNT Management Consulting GmbH

May 11, 2016 23STREAMlined IT powered by

SAP S/4HANA Enterprise Management