Are you ‘fit’ for S/4 HANA? - SQS Transforming the World through Quality Sadanand Kotasthane, Global Head of ERP Practice Are you ‘fit’ for S/4 HANA?

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<ul><li><p>sqs.com</p><p>TransformingtheWorldthroughQuality</p><p>SadanandKotasthane,GlobalHeadofERPPractice</p><p>AreyoufitforS/4HANA?</p><p>sqs.com</p><p>TransformingtheWorldthroughQuality</p></li><li><p>Introduction</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|2</p><p> Sadanandhasover24yearsofexperienceinenterprisewideITtransformation,solutiondesign, architectingandQA.</p><p> 20+yearsindeploymentofvariousSAPtechnologies&amp;solutionsforUpgrades,Migrations,Rollouts,Implementationsetc.</p><p> Invariousdomainssuchasmanufacturing,logistics,airlines,retail,utilities,pharmaetc.</p><p> WorkedforSAPGlobalConsultingwheresuccessfullysetupandmanagedtheSAPUpgradeAssessmentCompetencyCenter</p><p> ServedhundredsofSAPcustomerseverymonth CurrentlyworkinginSQSSoftwareQualitySystems group(Transformingtheworld</p><p>throughQuality!)asDirector ERPPractice.</p><p>PassionatetohelpcustomerstoimprovetheirSAPexperience!</p></li><li><p>3SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|</p><p>DigitalTransformation</p></li><li><p>MaturityinusingERP/CRM/SCM/ISx/BIsolutionsandRelativityinDigitalTransformation</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|4</p><p>Innovation</p><p>SystemofDifferentiation</p><p>SystemofRecord</p></li><li><p>MaturityinusingERP/CRM/SCM/ISx/BIsolutionsandRelativityinDigitalTransformation</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|5</p><p> Newtechnologies,ideasorapproach IoT,DesignThinking,HybridLandscaping LimitedAudience</p><p> CreateorganizationalagilitythroughadaptiveandcrossapplicationsE2Eprocesses</p><p> Processesuniquetoorganization</p><p> Strong,stablefoundation Paceofchangeisslow(avg.7+yearcycle) Provideslocationforcommonideas Coretransactionprocessing</p><p>SystemofRecord</p><p>SystemofDifferentiation</p><p>SystemofInnovation</p></li><li><p>MaturityinusingERP/CRM/SCM/ISx/BIsolutionsandRelativityinDigitalTransformation</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|6</p><p>AdaptedGartner PaceLayerDiagram</p><p>InnovationLayer</p><p>Deliverlessonslearnedandpossibilitiesforinvestment</p><p>SystemsofDifferentiation</p><p>SystemsofRecord</p><p>Highrateofchange.Explorationfocused.</p><p>Modernrateofchange.Investmentfocused.</p><p>Slowrateofchange.Efficiencyfocused.</p><p>Exposestandardizeddata,services&amp;capabilities</p></li><li><p>7SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|</p><p>TheSAPTransformation</p></li><li><p>Background S/4HANA</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|8</p></li><li><p>Background SAPSolutions</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|9</p><p>19921979</p><p>SAPR/3clientserver</p><p>1.0 2.0 3.0 4.0 4.6 4.7</p><p>2009</p><p>ExtendedSupport+4%</p><p>2013</p><p>SAPECCenterprise architecture</p><p>5.0 6.0 EHP1 EHP7 EHP8</p><p>2004</p><p>2016</p><p>SAPHANAERP(BS)inmemory cloudoption</p><p>S/4Hana 1511 1610 1710Cloud</p><p>20132015</p><p>EachPhaserepresentsamajorchangeinarchitectureandcodeandthependingendoftheearliertechnology</p><p>SAPR/2mainframe</p><p>2017</p></li><li><p>AviewonDigitalTransformation&amp;S/4HANA</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|10</p><p>Hasso Plattner (Chairman&amp;cofounderofSAPSE)Thisiswheretheworldisgoing,directaccessfromanywheretoanytypeofdata,whetheritsasmallpieceofdataorasmallanswerbutalongalgorithmtocreatethatanswer.Theuserdoesntcareaboutthis.</p><p>Dr.WielandSchreiner(SAPEVPresponsibleforSAPS/4HANA)stronginnovationcandrivebusiness.Enterprisescannoweasilyconnecttopeople,devices,andbusinessnetworkstodelivernewvaluetotheircustomers theInternetofThingsandBigDatabecomeaccessibletoanybusiness.Enterprisescandramaticallysimplifytheirprocessesandchangethem asneededtogainnewefficiencies.</p></li><li><p>AviewfromGartneronS/4HANA</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|11</p><p>DerekPrior,Duy DNguyen,MassimoPezzini:</p><p> TobesuccessfulwithSAPS/4HANA,allCIOsandERPleadersmustaddressmanyissues,includingapplicationstrategy,applicationintegrationstrategy,softwarelicensing,serviceproviderexperienceandinfrastructureoptions!</p><p> IdentifyifandhowS/4HANAfitsyourpostmodernERPstrategy,andupdatethestrategyaccordingly</p><p> EvaluatethebusinessimpactsandbenefitsofS/4HANA,andbuildtheseintoaconvincingbusinesscase</p><p> Selectexpertconsultingserviceproviders SecurethenecessaryinternalbusinessandITresources Buildanimplementationplan</p></li><li><p>MarketTrend:SignificantlyMoreCIOsExpecttoIncreaseSpendingwithSAPthanDecrease(Courtesy:MORGANSTANLEYresearch)</p><p>12</p><p>ORACLE</p><p>SAP</p><p>Microsoft</p><p>Citrix</p><p>Symantec</p><p>Adobe</p><p>RedHat</p><p>CRM</p><p>VMware</p><p>TheratioofspendingonSAPwas4%inJune2016from6%inOct2015.Currentlythespendingratioisincreasedto19% inJan2017onSAP.</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|</p></li><li><p>MarketTrend:TwothirdsofcompaniessurveyedarecurrentlyplanningordiscussingtheadoptionofS/4HANA(Courtesy:PACresearch)</p><p>13SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|</p></li><li><p>14SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|</p><p>TheS/4HANAMigration</p></li><li><p>TransitioningtoS/4HANAforexistingSAPcustomers</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|15</p><p>WhatfromexistingsolutioncanbemovedintotheS/4HANA?</p><p>e.g.OnPremiseERPtothe S/4HANACloudEdition(1611/1717/)</p><p>Followingarethetiers/areasthatareimpactedstraightaway!</p><p> GUI(GraphicalUserInterface) BusinessFunctionality:SAPstandard(configured)andcustomized Database&amp;TableDesign Interfaces</p><p>AlotcanbemovedintotheS/4HANA!</p></li><li><p>S/4HANAMigrationImpact!</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|16</p><p>UserInterface Change</p><p>FioriUserInterface</p><p>ObsoleteUserInterface</p><p>UserInterface</p><p>User</p><p>Interface</p><p>E.g.OnPremiseSAPERP6.x/CRM/SCM/ E.g.CloudS/4HANA(1611/1710/..)</p><p>CustomModification</p><p>StandardFunctionality</p><p>EnhancedModifications</p><p>Modifications</p><p>NewStandardFunctionality</p><p>OptimizedStandardFunctionality</p><p>ObsoleteStandardFunctionality</p><p>Functio</p><p>nality</p><p>StandardFunctionality</p><p>Change</p><p>ClassicDataModelCompatibilityViews</p><p>SimplifiedDataModel</p><p>DB Change</p><p>IntegrationExcludedAPIs</p><p>Integration</p><p>API</p><p>Change</p></li><li><p>TransitioningtoS/4HANAforexistingSAPcustomers</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|17</p><p>Database</p><p>Twobigchanges! OnlyonSAPHANADB:</p><p> MigratetoHANADB,assoonaspossible.WeightheimpactfromDBsize! Whatisthequalityofyourexistingdata?ItllbeaccessedRealTime.</p><p> RecommendedtouseInformationSteward. DataModel/Tabledesignchangesremovingredundancies</p><p>ClassicDataModelCompatibilityViews</p><p>SimplifiedDataModel</p><p>DB Change</p></li><li><p>TransitioningtoS/4HANAforexistingSAPcustomers</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|18</p><p>Interfaces</p><p> Mostofthestandardintegrationtouchpointsaresupportedandarementionedinthesimplificationlist.</p><p> DependenciesfromtheMiddlewareinuse,plusSAPXI/PI/PO. UseofPOisstronglyrecommended!HavetomigratefromXI/PItoPO. Whocanperformthismigration?</p><p>Followingaretheimpactconsiderations: Obsoleteremotefunctioncalls ChangesattheTableorFieldLevelinS/4HANA(e.g.MaterialNumberlength)</p><p>IntegrationExcludedAPIs</p><p>Integration</p><p>API</p><p>Change</p></li><li><p>TransitioningtoS/4HANAforexistingSAPcustomers</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|19</p><p>BusinessFunctionality:SAPstandard(configured)andcustomizedDataModelling</p></li><li><p>TransitioningtoS/4HANAforexistingSAPcustomers</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|20</p><p>UserInterface(Cloudversion)</p><p>UserInterface Change</p><p>FioriUserInterface</p><p>ObsoleteUserInterface</p><p>UserInterface</p><p>User</p><p>Interface</p><p>Paradigmshift! FioriappaccessisbasedonRolestotheFioriLaunchPad!</p><p> Usersneedtogetusedtothenewdesignofinterface SomefunctionalityalsoavailableonWebGUI accessedviaLaunchPad CheckontheobsoleteTcodes,</p><p>dontbeshocked! Referthesimplificationlist</p><p>fromSAP.</p></li><li><p>TransitioningtoS/4HANAforexistingSAPcustomers</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|21</p><p>BusinessFunctionality:SAPstandard(configured)andcustomized</p><p>CustomModification</p><p>StandardFunctionality</p><p>EnhancedModifications</p><p>Modifications</p><p>NewStandardFunctionality</p><p>OptimizedStandardFunctionality</p><p>ObsoleteStandardFunctionality</p><p>Functio</p><p>nality</p><p>StandardFunctionality</p><p>Change</p><p>Needtoaddress: Whichstandardorcustomfunctionalityyoureusingisobsolete inS/4HANA? WhichstandardfunctionalitythatyoureusingisdirectlyavailableinS/4HANA? WhichstandardfunctionalitythatyoureusingisoptimizedinS/4HANA? WhichnewfunctionalityisusefulforyoutoturnONinS/4HANA? WhichexistingcustomfunctionalityisnowavailableinS/4HANAasstandard? WhichexistingcustomizedfunctionalityisnotavailableinS/4HANAbutneedstobeavailable</p><p>duetobusinessuniquenessordemand?Refer:SimplificationItemDatabase WhichfunctionalityinS/4HANArequirestobecustomizedforyou?</p></li><li><p>TransitioningtoS/4HANAforexistingSAPcustomers</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|22</p><p>BusinessFunctionality:SAPstandard(configured)andcustomized</p><p>StreamlinedProcuretoPay</p></li><li><p>TransitioningtoS/4HANAforexistingSAPcustomers</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|23</p><p>BusinessFunctionality:SAPstandard(configured)andcustomized</p><p>AcceleratedPlantoProduct</p></li><li><p>TransitioningtoS/4HANAforexistingSAPcustomers</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|24</p><p>BusinessFunctionality:SAPstandard(configured)andcustomized</p><p>OptimizedOrdertoCash</p></li><li><p>TransitioningtoS/4HANAforexistingSAPcustomers</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|25</p><p>BusinessFunctionality:SAPstandard(configured)andcustomized</p><p>EnhancedRequesttoService</p></li><li><p>TransitioningtoS/4HANAforexistingSAPcustomers</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|26</p><p>BusinessFunctionality:SAPstandard(configured)andcustomized</p><p>Exampleofchanges: Secondaryelementsare</p><p>nowG/Laccounts.</p><p> Accountingprinciplesarenowatacompanycodelevel.</p><p> Ifthefiscalyeardiffers,youwillneedtouseledgerstorepresentparallelaccountings.</p></li><li><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|27</p><p>TransitioningtoS/4HANAforexistingSAPcustomers</p><p>BusinessFunctionality:SAPstandard(configured)andcustomized</p><p>Exampleofchanges:</p><p> Onlycustomerswith customer/vendorintegration inplacecanmovetoS/4HANA</p><p> AllcustomersandvendorsinyourSAPshouldbefirstconvertedinto businesspartners</p><p> Materialledger ismandatoryforclassicmaterialvaluation.</p><p> ExistingcustomerswithoutMLcanactivateMaterialLegerduringmigration/GoLiveaswell.</p><p> ForexistingcustomerswithactiveMLbutnotusingtransferprices,migrationprogramtransfersdatatothenewS/4HANAtables.</p></li><li><p>28SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|</p><p>Areyoufit forS/4HANA?</p></li><li><p>Introspection</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|29</p><p>HowdifferentisyourcurrentSAPsolution?</p><p>AreyouableadoptyourbusinessinnovationinyourcurrentSAPsolution?</p><p>Isyourdataaccessibleanytimefromanywhere?</p><p>Areyourprocesses toocomplicated&amp;customized?</p><p>IsyourSAPsolutionrigid oragile tomakeitworkforyou</p><p>forfuture?</p></li><li><p>Introspection</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|30</p><p>Whichwaywouldyouliketouseyour</p><p>SAP?</p><p>HaveyoustartedpreparingfortheS/4HANAbusinesscase?</p><p>HowwouldyouassesstheimpactforS/4HANAmigration?</p><p>Whatismyroadmap forsuccessfulS/4HANAmigration?</p></li><li><p>Yourown TransformationJourneytoS/4HANA!MakeyourSAPlandscapefitforS/4HANA</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|31</p><p>BusinessCase ChangesfromyourInnovationinitiativesforsurvival&amp;growth</p><p> Createasystemimplementablebusinesslogic Redesignofthebusinessprocesses&amp;endtoend ProcessScenarios</p><p> Critical&amp;CoreversusGeneric&amp;Outsourceable</p><p>ImpactassessmentforS/4HANAmigration Whichexistingfunctionalityisimpacted&amp;mustberetained? Whichnewfeaturesshouldbeimplemented(&amp;enhanced,ifneeded)? Howtoensurethechangesare100%perfectlyimplemented&amp;testedE2E? Isitgoingtobestepupgradesordirectmigration?</p><p>RoadmapforsuccessfulS/4HANAmigration DoyouhavephasesagreedbetweenBusiness&amp;ITteams? Doyouhaveexpertteamassembled(BAs,Processowners,Coreteam)? DeriskS/4HANAmigration:WhencanyoustarttheImpactAssessmenthealthcheck?</p></li><li><p>S/4HANAMigrationImpactAnalysis:Process</p><p>AnalysisofRequirementSpecificationsandchange</p><p>Plan</p><p>AnalysisofCurrentSolutionStandard,</p><p>customization,interfacesetc.</p><p>AnalysisoftobeFunctionalScopeintargetversione.g.EhP8/SoH /</p><p>S4HANA</p><p>Identificationofimpacted</p><p>criticalBusiness</p><p>Processes&amp;Functionality</p><p>Mapping withProcessLibrary&amp;Scenarios,usedTCodeslist,SQSLibraryofimpacted</p><p>functionalityfortargetversion,validationcriteria,criticality</p><p>analysis</p><p>CreateHeatmapdetailedreporton</p><p>impactedareas</p><p>ReviewbyBusiness&amp;IT</p><p>teams</p><p>Proceedtoplanthe</p><p>UpgradeorMigrationproject</p><p>32SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|</p></li><li><p>S/4HANAMigrationImpactAssessmentExample:BusinessProcessesMappingforECC6 EhP 7/EhP 8StepUpgrade</p><p>HumanCapitalManagement</p></li><li><p>MaterialManagement=&gt;EMLogistic Finance&amp;Controlling=&gt;EMFinance Travel&amp;ExpenseManagement</p><p>S/4HANAMigrationImpactAssessmentExample:BusinessProcessesMappingforECC6 EhP 7/EhP 8StepUpgrade</p></li><li><p>S/4HANAMigrationImpactAnalysis:Example:MasterDataManagementMappingforECC6 S/4HANAMigration</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|35</p></li><li><p>Procurement ProductionPlanning</p><p>S/4HANAMigrationImpactAnalysis:Example:Procurement&amp;ProductionPlanningMappingforECC6 S/4HANAMigration</p></li><li><p>S/4HANAMigrationImpactAnalysis:Example:ProcurementScenarioMappingforECC6 S/4HANAMigration</p></li><li><p>S/4HANAMigrationImpactAnalysis:Example:E2EScenarioMappingforECC6 S/4HANAMigration</p></li><li><p>S/4HANAMigrationImpactAnalysis:ExampleofHeatMap</p><p>39</p><p>BusinessAreas ImpactedKeyBusinessProcessesImpact</p><p>Assessment(H/M/L)</p><p>MDM</p><p>CentralizedProductMasterwithextendednumberrange H</p><p>BusinesspartnerinCustomerrole HBusinesspartnerinsupplierrole HBusinesspartnerinemployeerole H</p><p>Sourcing&amp;Procurement</p><p>Selfserviceprocurement H</p><p>MaterialValuation Statisticalmovingaverageprice M</p><p>FIORIbasedtransactions HInventory/Stock</p><p>movementProcess</p><p>Stockreport M</p><p>GoodsReceiptorGoodsmovement HSales&amp;</p><p>DistributionPricingDatamodel MGlobalTrade H</p><p>CustomizedBusinessProcess</p><p>ChangethecustomizedcriticalbusinessprocessestostandardtransactionofferedbyS/4HANA</p><p>H</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|</p></li><li><p>40</p><p>Complexity Analysis of Sub business process</p><p>Identification of critical scenarios based on ST03Nreport and migration impactSQS Business Process</p><p>Library mapping</p><p>S/4HANAMigrationImpactAnalysis:Example:Detailedreportoncriticalityandcomplexity</p></li><li><p>SQSGroup|SQSSAPHANATestingCapabilities,Solutions&amp;Services| 41</p><p>Complexity AnalysisOf E2E Business Scenario with mapped Sub Business Process</p><p>Analysis of Process Documentation</p><p>completeness </p><p>S/4HANAMigrationImpactAnalysis:Example:Detailedreportoncriticalityandcomplexity(continued)</p></li><li><p>WhySQS forS/4HANAimpactassessment</p><p>SQSGroupLimited|AreyoufitforS/4HANA?|Public|Version1.0|42</p><p>15+yearsinSAPtesting,in15countries,500+projectsand250+Enterprisecustomers</p><p> Proventrackrecord testingiswhatdoandonlydo!Wecantfailinwhatwedo</p><p>BusinessProcess&amp;E2EScenariobasedqualityassuranceapproach</p><p>FastmethodologytoconducttheimpactassessmentsforS/4HANA</p><p> Useofrepository,acceleratorsandtools(includingthoseprovidedbySAP) ReferenceofcasestudiesforSAPUpgradeandS/4HANAMigration Assessments</p><p> NootherinterestswhileperformingtheImpactAssessment!</p></li><li><p>sqs.com</p><p>SQSGroupLimited711MoorgateLondon,EC2R6AFUnitedKingdomPhone: +442074484620Fax: +442074484651info@sqs.com</p><p>Thankyouforyourattention.</p><p>GetintouchtodaytofindouthowwecanhelpyouonyourS/4HANAjourney</p><p>Contact:MarkBellMark.Bell@sqs.com+447580842498</p></li></ul>

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