SAP eXperience Day SAP S/4HANA Cloud: l’ERP as a Service - 21 febbraio 2018
The best of both worlds - 2-Tier with SAP S/4HANA Cloud
Richard P. Nagel, Sr. Director Centre of Excellence, SAP S/4HANA Cloud, SAP
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Why
“Intelligent
ERP”?
Demo
What is
S/4HANA
Cloud?
Your
Subsidiary
Ecosystem.
Challenge or
Opportunity?
Use
Case
Why 2-Tier
with
S/4HANA
Cloud?
Need
more?
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Why
“Intelligent
ERP”?
4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
New technologies allow for a truly intelligent Cloud ERP
Delivered throughthe Cloud
Predictive analyticsto focus more on outcomes thanthe past
Machine learning to reduce mundane
tasks and increase business agility
Intelligent assistants to empower users to focus on what matters
5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
We offer: Intelligent Technologies
Co-Pilot as Digital Assistant.
Automation through AI and ML.
Predictive analytics to support real-time decision making.
Intelligence platformby leveraging SAP HANA databaseand SAP Leonardo’s innovation.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
What is
S/4HANA
Cloud?
7Customer© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Customer
SAP S/4HANA CloudSimplify your business
INSTANT• Go Live in Weeks
• Quarterly Updates
• Fit to Standard
INTELLIGENT• Machine Learning & AI
• Digital Assistant
• Predictive Analytics
INNOVATIVE• In-Memory Database
• Real-time Insights
• Full Cloud Integration
8Customer© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Customer
SAP S/4HANA Cloud Improve user acceptance, efficiency, and onboarding speed
Responsive
Bringing together transactions and analytics to
close the gap between insight and action
Personalized
Offering personalized role-based tailored KPIs,
actionable insights, news feeds, and tasks
Beautiful
Combining simplicity, easy of use, and
functionality with a completely reimagined user
interface
Seamless
Delivering the same real-time insights and user
experience across desktops, mobiles, and tablets
Modern User Experience Powered by SAP Fiori
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Your
Subsidiary
Ecosystem.
Challenge or
Opportunity?
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M&A (“M&A is the biggest driver for two-tier ERP”, according to Gartner)
JointVenture velocity
Potential, future divestments (two-tier ERP to increase the value)
Geographic expansion with local retail subs (sales offices)
Local or offshore manufacturing facilities
“In-house startups” to foster organic innovation
Any business unit or division with different activities than its HQ
Companies have all sorts of subsidiary structures.They are often the growth engine of the business.
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HQ and subsidiaries/jointventures/mergers. Together they are strong. But different cultures.
Well established. Centralized standards.
Control. Meetings & Planning.
Unconventional. Play and experiment.
Agile. Startup behaviour. Millenials.
13© 2017 SAP SE or an SAP affiliate company. All rights reserved.
HQ and subsidiaries/jointventures/mergers. Together they are strong. With varying levels of independence.
Headquarters
Subsidiaries
Independent subsidiary(group of companies, constant M&A’s)
Headquarters
Subsidiaries
Top-down Headquarters(HQ pushes templates to sub)
▪ Strategy, planning and parts of execution from HQ
▪ Provider of funds for operations
▪ Tight control over operations
▪ Leveraging centralized services (HR, IT, R&D, etc)
▪ Own governance model with own Profit & Loss
▪ Use of corporate standard processes for efficiency
▪ Integrated value provider with products and services
▪ Independent innovations in subsidiaries
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Corporate and subsidiary requirements are fundamentally different
▪ Support a complex global environment
▪ Industry-specific functionality to support
each business
▪ Custom business scenarios to build
competitive advantage
▪ Cost efficiencies driven by a “stable” and well-
established IT environment
▪ Use custom applications, developed over the
years, to support the business
Corporate Subsidiary
▪ Minimize complexity to move fast
▪ Adopt standardized (HQ) best practices
automatically or quickly
▪ Fast to implement, easy to learn, agile to
change
▪ Scale easily and support simply
▪ Integrate into Corporate to leverage
services and capabilities
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A new subsidiary model is needed for success in the digital economy
Expand globally faster
▪ A solution that helps subsidiaries scale quickly at low cost
▪ Built-in governance, control, visibility, and best business practices
▪ Cloud to enable efficient subsidiary adoption and growth
Easily implement new business models across all subsidiaries
▪ Tighter alignment between Corporate and subsidiaries to quickly roll out company-wide products and services
▪ Digital economy models to allow speedy response to local business needs
▪ Better integration into corporate infrastructure for quicker/more effective M&A
Out-perform the competition
▪ Real-time visibility across the entire subsidiary ecosystem to serve customers better
▪ One face to the customer with tighter ecosystem interrelationships
▪ Increased leverage of Corporate services and capabilities
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Challenge or Opportunity?Leveraging a subsidiary eco-system
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Managing the subsidiary network can be a big challenge
High IT complexity and cost due to
heterogeneous applications across
subsidiaries
High corporate risk due to limited
governance and compliance across
subsidiaries
Higher cost of finance and
increased cash needs due to limited
visibility to timely subsidiary analytics
Operational inefficiencies due to
minimal leverage by subsidiaries of
Corporate capabilities and services
High subsidiary operational costs
due to inconsistent business
processes
Difficult/costly to incorporate new
acquisitions by simply rolling out
Corporate ERP into subsidiaries.
18© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Managing the subsidiary network offers great opportunities!Growing in a digital economy. Enabling digital disruption.
Why not using a single vendor solution
for multiple tiers to reduce complexity
by a Single Data Model?
SAP best practices built in to the
application by default. Fit to
standard enabling lowest costs.
Out of the box integration between
two tiers to quickly build competitive
advantage and efficiency
Leveraging central investments
and delivering the subsidiary the
required flexibility and autonomy
Enabling subsidiaries with quarterly
innovations to accelerate in Digital
Economy (IoT, MachineLearning,..)
Happy end users due to ease of
use UI. Lowered training and
support costs.
19© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Digital disruption causes key challenges across subsidiaries
“How can I raise the efficiency, effectiveness, and competitiveness of
my subsidiaries to take better advantage of the Digital Economy?”
“My subsidiary IT environment is too complex and too expensive. I
need to simplify and reduce costs while balancing the needs of
Corporate with the needs of the subsidiaries.”
“I need to get better, faster visibility of subsidiary finances and cash
flow needs to optimize financial requirements for the entire
organization.”
COO
CFO
CEO
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Why 2-Tier
with
S/4HANA
Cloud?
21© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Subsidiary Eco-System – the need for speed, control and leverage
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Subsidiary Eco-System – the need for speed, control and leverageAnd what SAP delivers with SAP S/4HANA Cloud in 2-Tier Architecture
Optimized
IT Cost and Speed
Reduced Complexity
ManagedRisk
EffectiveControl & Governance
End-to-EndBusiness Processes
Complete Visibility
Easier M&A
23CONFIDENTIAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Two-Tier ERP is about meeting corporate and subsidiary requirements.
Instant Value
▪ Accelerate go-live & user
adoption
▪ Rapid global deployments
▪ Quickly adapt to new business
needs
Continuous Innovation
▪ Instant access to the latest
technologies
▪ Get the latest best practices
▪ Keep up with regulatory
changes
Predictable, Lower TCO
▪ Shift from CapEx to OpEx
▪ Better transparency into costs
& usage
▪ No infrastructure investment
needed
Simple, Reliable & Safe
▪ Easy to configure & extend
▪ Fully managed by a trusted
3rd-party
▪ Complete data security and
protection
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Why Two-Tier ERP With SAP? Because only SAP can offer you pre-packaged scenarios with full semantic integrity.
Financial Planning, Consolidation & Profitability
➢ Financial Planning & upload of plan data to subsidiary
➢ Enabling Group Consolidation & Profitability at HQ
➢ S/4HANA Cloud based legal consolidation
➢ Connect to on prem BPC-based consolidation
➢ Central Finance connectivity
Cash Management:
➢ Cash position of subsidiary visibility at HQ
Basic Manufacturing
➢ Subsidiary as a production unit and internal
supplier to HQ
➢ 3rd party Warehouse management
integration
➢ Integration with MES
Subsidiary as Local Sales Office
➢ Sale from Local (Goods & basic Services)
➢ Sale from Central Stock (drop shipment from HQ)
➢ Returns handling with Credit & Debit Memos
support
➢ Sale from HQ Direct procurement from Subsidiary
External & Basic Internal procurement
➢ Procurement directly by Subsidiary with process
visibility to HQ
➢ HQ as internal supplier to subsidiary via central
contract
➢ Replenishment
Core Finance
Order to Cash
Order to Cash
Procure to PayManufacturing
Master Data,
Integration
& Analytics
25CONFIDENTIAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
2-tier ERP: The best of both worldsSAP S/4HANA Cloud supports corporate and subsidiary needs
Corporate
▪ Single-vendor solution
▪ Real-time analytics and visibility
▪ SAP-delivered country versions
▪ Fast M&A onboarding
Subsidiary
▪ Corporate services and capabilities out to subsidiaries
▪ Intelligent ERP
▪ Embedded best practices for control, governance, process
standardization
Subsidiaries - Tier two
Consulting & Service Delivery
Manufacturing
Sales
Shared Services
Distribution
Field Service and Repair
Corporate - Tier one
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Integrations with HQ systems
2-Tier ERP Strategy ExampleSAP S/4HANA Cloud used in Subsidiaries.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Use
Case
28CONFIDENTIAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Company Profile
▪ TopCon makes optical instruments, established in 1932, 4700 people on 3 continents
▪ TopCon Europe Positioning (TEP) has 9 retail subsidiaries (sales offices) in different countries
IT Profile
▪ TEP HQ runs on ECC and 3 subs run on S/4HANA Cloud (NL, BE, DE)
▪ The other subs use different systems (Dynamics, MFG/Pro, Hansa, Sage, others)
▪ Plan is to move the subs to S/4HANA Cloud to:
– Improve visibility of operations
– Unify work procedures
– Achieve Consolidation
Two-Tier ERP in Practice: TopCon Europe Positioning
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Two-Tier ERP in Practice: TopCon Europe Positioning
HeadquartersSubsidiary
Create SOCreate PO
Confirm SOConfirm PO
Send ASNASN update in PO
Send Billing DocPost Invoice
SAP Cloud
Platform
S/4HANA Cloud ECC
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Demo
31Customer© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Customer
S/4HANA Cloud offers many 2-Tier ScenariosGeared for Growth
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Subsidiary as Sales Office – Sale from Central Stock, Drop-Shipment with ASN
Headquarters(Internal)
Sales Rep
and Credit
Manager
Purchasing
Manager Billing clerkAR
Accountant
Subsidiary
PurchaserWarehouse
Clerk
Create
Third-party
Sales Order
Customer
SO
Change
Order
(Optional)
Display
List of
Purchase
Req
Convert
PR to PO
Approve
PO
Post
Statistical
GR
Create
Billing
Doc
Period End
Closing (BKK)
AR
Incoming
Payment
(J59)
AP
Accountant
Account
Payable
(J60)
Process
Vendor
Invoice
Vendor
Invoice
Update
Delivery
Date in
PO
Internal
Sales Rep
Order
Fulfilment
Specialist
Shipping
SpecialistBilling
Clerk
Account
Receivable
Accountant
Sales
Order
Sales Order
Confirmation
Release
For
Delivery
Create
Delivery
Execute
Picking
Post
Goods
Issue
Create
Billing
Doc
Sales Period
End Closing
BKK
AR
Incoming
Payment
(J59)
Subsidiary➢ Customer order at the local sales office
creates follow on documents (Purchase
order, sales order, Order Confirmation)
➢ API to send the PO information for SO
creation at HQ
Headquarters ➢ Creates Sales Order with Sold-to as Sales
Office and Ship-to as Customer
➢ Confirms the delivery date to subsidiary
Sales Office
Subsidiary ➢ Sales Office provides Order Confirmation to
customer with confirmed dates
Headquarters➢ Post Goods Issue to customer delivery
➢ ASN to Subsidiary
➢ Bill to Subsidiary
Subsidiary➢ Posts Statistical GR for HQ Drop Shipment
➢ Customer Billing
Pre-Requisite:➢ Subsidiary runs S/4H Cloud
➢ HQ runs on OP or ECC
➢ Same Customer Master Data at HQ and
Sub
Update
Schedule
Dates in
SO
Sales Order
Confirmation
to Customer
**Mapping in the middleware is project specific
Shipping
Notification
Scope Item flow
API based
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Need
more?
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SAP Best Practice ExplorerAccess to 2-Tier Accelerators in SAP S/4HANA Cloud
SAP Best Practice Explorer
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
1802 ‒ Recent innovations* 1808 ‒ Planned Q3/2018**1805 ‒ Planned Q2/2018** 1811 ‒ Planned Q4/2018**
** This is the current state of planning and may be changed by SAP at any time without notice.
* Feature highlights for SAP S/4HANA Cloud 1802. See Feature Scope Description for full scope.
APIs for financial operations
Central finance integration with SAP S/4HANA Cloud
▪ Central finance – integration of cost objects scenarios from SAP S/4HANA Cloud to central finance on premise
Additional whitelisted APIs for consumption on all platforms
▪ Read credit limit information
▪ Bank statement
Cloud consolidation of HQ and subsidiaries
▪ Leverage SAP Cloud Platform for consolidation enhanced data collection for nonfinancial measures and nonintegrated subsidiaries
Sales
Additional whitelisted APIs
▪ OData API for return orders (create), (update), (delete)
Core finance
▪ Leverage SAP Cloud Platform for use in consolidation – form designer for data collection app
▪ Consolidation – improved integration of external systems
Sales
▪ Accelerated returns processing in SAP S/4HANA Cloud – show inspection document in process flow
▪ SAP S/4HANA Cloud – sales integration with buyers, cloud to on-premise integration
▪ OData API for sales quotations (create), (update), (delete)
▪ OData API for sales contracts (create), (update), (delete)
▪ SOAP Service for billing documents (cancel)
▪ OData API for return orders (create), (update), (delete)
▪ Accelerated returns processing in SAP S/4HANA Cloud – show inspection document in process flow
▪ OData API for billing document requests (read)
Core finance
Leverage SAP Cloud Platform for use in finance with cloud deployment of SAP S/4HANA Finance for customer payments ▪ Cash management – hybrid cash management deployment
Cloud consolidation of HQ and subsidiaries▪ Consolidation – improved data quality control▪ Treasury and risk management – hybrid treasury deployment
Sales
Returns handling at subsidiary▪ SOAP Service for billing document requests (Create),
(Delete), (Reject)▪ SOAP Service for billing documents (create)
Manufacturing▪ Mass data enablement of OData APIs for planned
independent requirements (create and update)
Procurement▪ Centralized scheduling agreement through hub deployment
of SAP S/4HANA
Analytics▪ Analytics for central contract▪ Demand-driven analytics▪ Whitelisted core data services views for cubes and queries in
SAP S/4HANA Cloud 1808 for sales contracts and debit memo requests
Manufacturing
▪ OData API for production order confirmation (create, read)
▪ OData API for production orders (create, read, update, and delete)
Analytics
▪ Analytics for the procurement hub in SAP S/4HANA
SAP S/4HANA Cloud Roadmap Two-tier ERP capabilities
Procurement
▪ Centralized contracts through hub deployment of SAP S/4HANA
Manufacturing – plan to produce
▪ OData API for returns deliveries (create, read, update, and delete)
▪ OData API for inbound deliveries (update)
Manufacturing – plan to produce▪ Subcontracting in purchase orders▪ OData API for planned order (create, read, update,
and delete)▪ SOAP API for Outbound Deliveries (enhancement)Analytics▪ Whitelisted core data services views for cubes and
queries in SAP S/4HANA Cloud 1805 for sales quotation and customer returns
Procurement ▪ Flexible workflow and enhanced distribution of
centralized contracts
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
BlogsSAP S/4HANA Cloud - 2-Tier ERP Use Cases
•2-Tier ERP Sales usecases
•2-Tier ERP Financial Consolidation usecases
•2-Tier ERP Other Core Finance usecases
•2-Tier ERP Manufacturing usecases
•2-Tier ERP Procurement usecases
•2-Tier ERP - Handling Integration
•2-Tier ERP Master Data approaches
•2-Tier ERP - Analytics usecases and approaches
What's New Blogs
•What's new in 1705 in 2-Tier ERP
•What's new in 1708 in 2-Tier ERP
•What's new in 1711 in 2-Tier ERP New
Master Data Blogs
•Replication of Customers from SAP On Premise to SAP S/4HANA Cloud using DRF
•Replication of Vendors from SAP On Premise to SAP S/4HANA Cloud using DRF
Core Finance Blogs
•Cloud Consolidation with External System Company Data & Intercompany re-con
•How to integrate Financial Planning done on Business Objects Planning and Consolidation with SAP S/4HANA
Cloud
Sales & Procurement
•Automate a Purchase Order on SAP S/4HANA Cloud to a Sales Order on SAP On Premise Using iFlows
Manufacturing
•Integration with 3rd party Warehouse Management System
•Integration with 3rd party Manufacturing Execution System
•Subsidiary as a local Manufacturing Unit
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Videos
Dedicated 2-Tier ERP Playlist
YouTube Playlist
•SAP S/4HANA Sneak Preview 1702 - Two-Tier ERP
•What's new in 1705 in 2-Tier ERP
•What's new in 1708 in 2-Tier ERP
•What's New with Two-Tier ERP in SAP S/4HANA Cloud 1711
•Replication of Materials from SAP On Premise to SAP S/4HANA Cloud using DRF
•Replication of Vendors from SAP On Premise to SAP S/4HANA Cloud using DRF
•Replication of Customers from SAP On Premise to SAP S/4HANA Cloud using DRF
•Automate a Purchase Order on SAP S/4HANA Cloud to a Sales Order on SAP On Premise Using iFlows
•SAP S/4HANA Cloud 1711 Two-Tier ERP Update on Finance New
•SAP S/4HANA Cloud 1711 Two-Tier ERP Update on Integration New
•SAP S/4HANA Cloud 1711 Two-Tier ERP Update on Manufacturing New
•SAP S/4HANA Cloud 1711 Two-Tier ERP Update on Sales/Order to Cash New
•SAP S/4HANA Cloud 1711 Two-Tier ERP Update on Procurement New
38Customer© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Customer
Where to go for more information
Join the SAP
S/4HANA Community
Best Practices Explorer SAP S/4HANA TrialsSAP S/4HANA
Release Info
SAP S/4HANA
RoadmapsSAP Help Portal
Transformation NavigatorExplore the scope SAP Activate SAP Roadmap Viewer
Thank you!
Richard P. Nagel
Director Centre of Excellence EMEA/MEE, SAP
S/4HANA Cloud, SAP
30 anniin Italia
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