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

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Transforming the World through Quality

Sadanand Kotasthane, Global Head of ERP Practice

Are you ‘fit’ for S/4 HANA?

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Transforming the World through Quality

Introduction

© SQS Group Limited | Are you ‘fit’ for S/4 HANA? | Public | Version 1.0 | 2

• Sadanand has over 24 years of experience in enterprise‐wide IT transformation, solution design, architecting and QA.

• 20+ years in deployment of various SAP technologies & solutions for Upgrades, Migrations, Roll‐outs, Implementations etc.

• In various domains such as manufacturing, logistics, airlines, retail, utilities, pharma etc.

• Worked for SAP Global Consulting where successfully setup and managed the SAP Upgrade Assessment Competency Center

• Served hundreds of SAP customers every month

• Currently working in SQS Software Quality Systems group (Transforming the world through Quality!) as Director ‐ ERP Practice.

Passionate to help customers to improve their SAP experience!

3© SQS Group Limited | Are you ‘fit’ for S/4 HANA? | Public | Version 1.0 |

Digital Transformation

Maturity in using ERP / CRM / SCM / IS‐x / BI … solutionsand Relativity in “Digital Transformation”


Innovation

System of Differentiation

System of Record



• New technologies, ideas or approach• IoT, Design Thinking, Hybrid Landscaping• Limited Audience

• Create organizational agility through adaptive and cross applications E2E processes

• Processes unique to organization

• Strong, stable foundation• Pace of change is slow (avg. 7+ year cycle)• Provides location for common ideas• Core transaction processing

System of Record

System of Differentiation

System of Innovation



Adapted Gartner© Pace Layer Diagram

Innovation Layer

Deliver lessons‐learned and possibilities for investment

Systems of Differentiation

Systems of Record

High rate of change.Exploration focused.

Modern rate of change.Investment focused.

Slow rate of change.Efficiency focused.

Expose standardized data, services & capabilities


The SAP Transformation

Background – S/4 HANA


Background – SAP Solutions


19921979

SAP R/3client‐server

1.0 2.0 3.0 4.0 … 4.6 4.7

2009

Extended Support +4%

2013

SAP ECCenterprise architecture

5.0 6.0 EHP1 … EHP7 EHP8

2004

2016

SAP HANA ERP (BS)in‐memory – cloud option

S/4 Hana 1511 1610 …1710Cloud

20132015

Each Phase represents a major change in architecture and code and the pending end of the earlier technology

SAP R/2mainframe

2017

A view on Digital Transformation & S/4 HANA


Hasso Plattner (Chairman & co‐founder of SAP SE)“This is where the world is going, direct access from anywhere to any type of data, whether it’s a small piece of data or a small answer but a long algorithm to create that answer. The user doesn’t care about this.”

Dr. Wieland Schreiner (SAP EVP responsible for SAP S/4 HANA)“…strong innovation can drive business. Enterprises can now easily connect to people, devices, and business networks to deliver new value to their customers – the Internet of Things and Big Data become accessible to any business. Enterprises can dramatically simplify their processes and change them as needed to gain new efficiencies.”

A view from Gartner on S/4 HANA


Derek Prior, Duy D Nguyen, Massimo Pezzini:

• To be successful with SAP S/4 HANA, all CIOs and ERP leaders must address many issues, including application strategy, application integration strategy, software licensing, service provider experience and infrastructure options!

• Identify if and how S/4 HANA fits your postmodern ERP strategy, and update the strategy accordingly

• Evaluate the business impacts and benefits of S/4 HANA, and build these into a convincing business case

• Select expert consulting service providers

• Secure the necessary internal business and IT resources

• Build an implementation plan

Market Trend: Significantly More CIOs Expect to Increase Spending with SAP than Decrease (Courtesy: MORGAN STANLEY research)

12

ORACLE

SAP

Microsoft

Citrix

Symantec

Adobe

Red Hat

CRM

VMware

The ratio of spending on SAP was 4% in June 2016 from 6% in Oct 2015. Currently the spending ratio is increased to 19% in Jan 2017 on SAP.

© SQS Group Limited | Are you ‘fit’ for S/4 HANA? | Public | Version 1.0 |

Market Trend: Two thirds of companies surveyed are currently planning or discussing the adoption of S/4 HANA (Courtesy: PAC research)



The S/4 HANA Migration

Transitioning to S/4 HANA for existing SAP customers


What from existing solution can be moved into the S/4HANA?

e.g. On‐Premise ERP to the S/4HANA Cloud Edition (1611 / 1717 / …)

Following are the tiers/areas that are impacted straightaway!

• GUI (Graphical User Interface)

• Business Functionality: SAP standard (configured) and customized

• Database & Table Design

• Interfaces

A lot can be moved into the S/4 HANA!

S/4 HANA Migration Impact!


User Interface Change

Fiori User Interface

Obsolete User Interface

User Interface

User

Interface

E.g. On Premise SAP ERP 6.x / CRM / SCM / … E.g. Cloud S/4HANA (1611 / 1710 / ..)

Custom Modification

Standard Functionality

Enhanced Modifications

Modifications

New Standard Functionality

Optimized Standard Functionality

Obsolete Standard Functionality

Functio

nality


Change

Classic Data ModelCompatibility Views

Simplified Data Model

DB Change

IntegrationExcluded API’s

Integration

API

Change



Database

Two big changes!• Only on SAP HANA DB:

• Migrate to HANA DB, as soon as possible. Weigh the impact from DB size!• What is the ‘quality’ of your existing data? It’ll be accessed ‘Real Time’.

• Recommended to use ‘Information Steward’.• Data Model / Table design changes removing redundancies

Classic Data ModelCompatibility Views

Simplified Data Model

DB Change



Interfaces

• Most of the standard integration touch points are supported and are mentioned in the simplification list.

• Dependencies from the Middleware in‐use, plus SAP XI / PI / PO.• Use of PO is strongly recommended! Have to migrate from XI / PI to PO.• Who can perform this migration?

Following are the impact considerations:• Obsolete remote function calls• Changes at the Table or Field Level in S/4 HANA (e.g. Material Number length)

IntegrationExcluded API’s

Integration

API

Change



Business Functionality: SAP standard (configured) and customizedData Modelling



User Interface (Cloud version)

User Interface Change

Fiori User Interface

Obsolete User Interface

User Interface

User

Interface

Paradigm shift!• Fiori app access is based on Roles to the ‘Fiori LaunchPad’!

• Users need to get used to the new design of interface• Some functionality also available on WebGUI accessed via LaunchPad• Check on the obsolete T‐codes,

don’t be shocked!• Refer the simplification list

from SAP.



Business Functionality: SAP standard (configured) and customized

Custom Modification


Enhanced Modifications

Modifications

New Standard Functionality

Optimized Standard Functionality

Obsolete Standard Functionality

Functio

nality


Change

Need to address:• Which ‘standard or custom’ functionality you’re using is obsolete in S/4 HANA?• Which ‘standard’ functionality that you’re using is directly available in S/4 HANA?• Which ‘standard’ functionality that you’re using is optimized in S/4 HANA?• Which new functionality is useful for you to ‘turn ON’ in S/4 HANA?• Which existing ‘custom’ functionality is now available in S/4 HANA as ‘standard’?• Which existing ‘customized’ functionality is not available in S/4 HANA but needs to be available

due to business uniqueness or demand? Refer: “Simplification Item Database”• Which functionality in S/4 HANA requires to be customized for you?




Streamlined Procure to Pay




Accelerated Plan to Product




Optimized Order to Cash




Enhanced Request to Service




Example of changes:• Secondary elements are

now G/L accounts.

• Accounting principles are now at a company code level.

• If the fiscal year differs, you will need to use ledgers to represent parallel accountings.




Example of changes:

• Only customers with customer/vendor integration in place can move to S/4HANA

• All customers and vendors in your SAP should be first converted into business partners

• Material ledger is mandatory for classic material valuation.

• Existing customers without ML can activate Material Leger during migration/Go‐Live as well.

• For existing customers with active ML but not using transfer prices, migration program transfers data to the new S/4HANA tables.


Are you ‘fit’ for S/4 HANA?

Introspection


How ‘different’ is your current SAP solution?

Are you able adopt your business innovation in your current SAP solution?

Is your ‘data’ accessible anytime from anywhere?

Are your processes too complicated & customized?

Is your SAP solution rigid or agile to make it work for you

for future?

Introspection


Which waywould you like to use your

SAP?

Have you started preparing for the S/4 HANA ‘business case’?

How would you assess the ‘impact’ for S/4 HANA migration?

What is ‘my’ roadmap for successful S/4 HANA migration?

Your own Transformation Journey to S/4 HANA!“Make your SAP landscape fit for S/4 HANA”


Business Case• Changes from your Innovation initiatives for survival & growth

• Create a system implementable business logic• Redesign of the business processes & end‐to‐end Process Scenarios

• Critical & Core versus Generic & Outsourceable

Impact assessment for S/4HANA migration• Which existing functionality is impacted & must be retained?• Which new features should be implemented (& enhanced, if needed)?• How to ensure the ‘changes’ are 100% perfectly implemented & tested E2E?• Is it going to be step upgrades or direct migration?

Roadmap for successful S/4HANA migration • Do you have ‘phases’ agreed between Business & IT teams?• Do you have expert team assembled (BAs, Process owners, Core team)?• De‐risk S/4HANA migration: When can you start the Impact Assessment health check?

S/4 HANA Migration Impact Analysis:Process

Analysis of Requirement Specifications and change

Plan

Analysis of Current Solution Standard,

customization, interfaces etc.

Analysis of ‘to be’ Functional Scope in target version e.g. EhP8 / SoH /

S4HANA

Identification of impacted

critical Business

Processes & Functionality

Mapping with Process Library & Scenarios, used T Codes list, SQS Library of impacted

functionality for target version, validation criteria, criticality

analysis

Create Heat map detailed report on

impacted areas

Review by Business & IT

teams

Proceed to plan the

Upgrade or Migration project


S/4 HANA Migration Impact AssessmentExample: Business Processes Mapping for ECC6 ‐ EhP 7 / EhP 8 Step Upgrade

Human Capital Management

Material Management => EM Logistic Finance & Controlling => EM Finance Travel & Expense Management

S/4 HANA Migration Impact AssessmentExample: Business Processes Mapping for ECC6 ‐ EhP 7 / EhP 8 Step Upgrade

S/4 HANA Migration Impact Analysis: Example: Master Data Management Mapping for ECC6 – S/4HANA Migration


Procurement Production Planning

S/4 HANA Migration Impact Analysis: Example: Procurement & Production Planning Mapping for ECC6 – S/4HANA Migration

S/4 HANA Migration Impact Analysis: Example: Procurement Scenario Mapping for ECC6 – S/4HANA Migration

S/4 HANA Migration Impact Analysis: Example: E2E Scenario Mapping for ECC6 – S/4HANA Migration

S/4 HANA Migration Impact Analysis: Example of Heat Map

39

Business Areas Impacted Key Business ProcessesImpact

Assessment (H/M/L)

MDM

Centralized Product Master with extended number range H

Business partner in Customer role H

Business partner in supplier role H

Business partner in employee role H

Sourcing & Procurement

Self service procurement H

Material Valuation ‐ Statistical moving average price M

FIORI based transactions H

Inventory/ Stock movement Process

Stock report M

Goods Receipt or Goods movement H

Sales & Distribution

Pricing Data model M

Global Trade H

Customized Business Process

Change the customized critical business processes to standard transaction offered by S/4 HANA

H

© SQS Group Limited | Are you ‘fit’ for S/4 HANA? | Public | Version 1.0 |

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Complexity Analysis of Sub business process

Identification of critical scenarios based on ST03Nreport and migration impactSQS Business Process

Library mapping

S/4 HANA Migration Impact Analysis: Example: Detailed report on criticality and complexity

SQS Group | SQS SAP HANA Testing Capabilities, Solutions & Services | 41

Complexity AnalysisOf E2E Business Scenario with mapped Sub Business Process

Analysis of Process Documentation

completeness

S/4 HANA Migration Impact Analysis: Example: Detailed report on criticality and complexity (continued)

Why SQS – for S/4HANA impact assessment


15+ years in SAP testing, in 15 countries, 500+ projects and 250+ Enterprise customers

• Proven track record – testing is what do and ‘only’ do! We can’t fail in what we do

Business Process & E2E Scenario based quality assurance approach

Fast methodology to conduct the impact assessments for S/4 HANA

• Use of repository, accelerators and tools (including those provided by SAP)

• Reference of case studies for SAP Upgrade and S/4 HANA Migration Assessments

• No other interests while performing the Impact Assessment!

sqs.com

SQS Group Limited7–11 MoorgateLondon, EC2R 6AFUnited KingdomPhone: +44 20 7448 4620 Fax: +44 20 7448 [email protected]

Thank you for your attention.

Get in touch today to find out how we can help you on your S/4 HANA journey

Contact:Mark [email protected]+44 7580 842 498

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

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