how to develop a decision paper for practical examples ... roa… · §technical prerequisites ......

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Speaker’s Name/Department

Date, 2015

With SAP HCM Cloud Service andSupport

How to Develop a Decision Paper forPractical Examples

Keywan NadjmabadiSAP (Switzerland) Inc.


What are typical questions we have to deal with

WHAT(Target solution landscape)

§ Product selection§ SAP’s product strategy§ Sourcing strategy§ Make or buy strategy§ Cloud strategy§ Operational model /

organization§ Innovation readiness,…

HOW(Roadmap)

§ Product roadmaps§ Internal projects (business and IT)§ Technical prerequisites§ Capacities§ Budgets,…

WHY(Effort vs. benefit)

§ Business value in CHF, ROI§ Strategical benefit§ TCO: Change and run effort§ Contractual situation,…


Initial situation and assignment

§ Swiss company, international business

§ One main business unit

§ Centrally organized IT

§ SAP ERP and SAP BW in scope

§ ECC 6.0 EHP 6, unicode, singleinstance

Initial situation

§ What's behind SAP S/4 HANA?

§ What does the SAP strategy mean for us?

§ What is the value of S/4 HANA (for businessand IT)?

§ What are technical requirements?

Questions / assignment


Project procedure

§ Presentation of SAP‘sproduct strategy

§ Demonstration &identification of use cases(finance and logistics)

§ Presentation of new andupcomming SAP S/4HANA features andfunctions

§ Analysis and selection ofrelevant use cases

§ Use case evaluation(benefit, realization effort)

§ Management summary

1 Onsite workshops withLoB and IT 2 Develop value

proposition andrecommendation

§ S/4 HANA BusinessRecommendationScenario Report (BSR)

§ Verify / justify pain pointsand business needs

0 Preparation


Step 4Have the report generated anddelivered to the requestor and

the customer’s account executivewithin approx. five business days.

Business Scenario RecommendationStep 1Visit the

BSR Web sitewww.s4hana.com.

Step 2Register for the report andupload your ERP system

data.

Step 3Receive a

confirmation e-mail.


Business Scenario Recommendation (BSR)


StreamlinedProcure to Pay

AcceleratedPlan to Product

EnhancedRequest to Service

OptimizedOrder to Cash

CoreFinance

Operational Procurement

Inventory and BasicWarehouse Management*

Invoice and PayablesManagement

Sourcing and ContractManagement

Supplier Information and MasterData

Production Planning• Demand Planning / S&OP• Site Planning

Manufacturing Execution

Inventory and BasicWarehouse Management

Product Development andProject Control

Maintenance

Order and ContractManagement

Inventory and BasicWarehouse Management*

Receivables Processing

Service Master DataManagement

Service Management

Service Parts Management

Core HumanResources

Accounting andFinancial Close

Cross Application TimeManagement

Service AgreementManagement

Cost Management andProfitability Analysis

Quality Management anCompliance

In scope of Value DiscoveryWorkshop

* Covered as part of Accelerated Plan to Product

Not in scope of ValueDiscovery Workshop

Mai

nPr

oces

ses

Supp

ortin

gPr

oces

ses

Scoping based on S/4 HANA process model


OperationalProcurement

RequirementProcessing

Purchase OrderProcessing Service Purchasing Procurement Analytics Self Service

RequisitioningPurchase OrderCollaboration

As-situation / Current Implementation:● Indirect materials and Services

§ Purchase process can be run on SAP ECC or SAP SRM (+catalogs)depending on category of spend§ High % of spend covered by self service process§ Reporting in SAP BI

● Direct materials§ Purchase process fully in SAP ECC standard functions with PO form

automatically sent by mail to suppliers§ Reporting spend analysis developed on BO Webi

● Indirect & Direct materials§ KPIs developed with Business Studio

Challenges● Indirect materials : SAP SUS under evaluation. Implementation to be

decided

● Collaboration with suppliers : vendor portal planned, today’sapproach = Cloud trading platform (ex : ARIBA) not in strategy due tocost to onboard our vendors.

RequirementsWe can consider that, at high level, the operational and reporting PTPrequirements are covered today.The requirements are :

- upstream : the complete lifecycle of the contracts (negotiation ,elaboration and storage of contracts)

- the digital collaboration with suppliersPriority: high medium low

As-Is analysis: Operational Procurement


Value• Business Value• IT Value• Relevance

Feasibility• Realisation Effort• Org / Proc. Changes• Duration• Prerequisites highlowhighlow

OperationalProcurement

RequirementProcessing

Purchase OrderProcessing Service Purchasing Procurement Analytics Self Service

RequisitioningPurchase OrderCollaboration

Solution Capabilities

§ Fiori Apps providing user-friendly interface to critical information quickly andreliably

§ Simplified pricing§ Simplified foreign trade solution based on GTS§ Reduced operating costs through real time, self service operational

procurement supported by real-time data analysis and mobile support§ Reduced cost and complexity§ Reduced manual intervention for both customer and vendor§ …

Value Drivers

§ Procurement FTE Efficiency and Effectiveness§ Procurement Savings and Cost Reduction§ Vendor Interaction§ Vendor Collaboration

To-Be evaluation: Operational Procurement


Feasibility(required process / organizational changes, product availability, prerequisites, implementation effort)

Valu

e/N

eed

Low

Med

ium

Hig

h

Low HighMedium

Quick winsStrategic No. TopicOrder and Contract Management

Receivables Processing

Operational Procurement

Invoice & Payables Management

Sourcing and Contract Management

Supplier Information and Master Data

Demand Planning / Sales & Operations Planning

Site Planning (MRP related)

Site Planning (PP/DS co-deployed related)

Manufacturing Execution

Inventory and Basic Warehouse Management

Maintenance

Accounting and Financial Close

Accounting

Cost Management and Profitability Analysis

1

2

3

4

5

6

7

89

10

12

13

14

15

xx x

Supplementarycapabilkity

S/4HANARoadmap capability

S/4HANAcapabilities (1511)

12

3

4

5

67

8

9

11

11

10

12

13

14

15

Heat map of identified topics / processes


Benefit evaluation (Business Case, OPTION)

Use case selection

Predefined value driver and benchmarks based on SAP’sbenchmark database


§ 3-day onsite workshop with LoB and IT-representatives§ Presentation of SAP‘s product strategy and the latest S/4 HANA use cases§ Development of a common (aligned with business and IT) S/4 HANA value

proposition and recommendation:§ Relevant use cases and processesà S/4 HANA Heat-map§ Benefit evaluation§ (Technical migration roadmap)§ Management presentation

Project procedure and deliverables


Initial situation and assignment

§ Swiss large enterprise group

§ 9 different business units

§ Centrally organized IT

§ > 50 SAP ERP ECC Systems and BW

§ > 10’000 developments

§ Unicode as well as non-unicode

§ Non-SAP DB / valid contract till 2020

Initial situation

§ What's behind SAP S/4 HANA?

§ What does the SAP strategy mean for us (groupview, individual BU)

§ What are technical prerequisites?

§ What are potential deployment scenarios?

§ Effort estimation (change + run)

§ Benefit evaluation (strategy, qualitative, TCO)?

Questions / assignment


§ Presentation of SAP‘sproduct strategy

§ System demonstration andevaluation of potentialuses cases

§ Analysis of the as-issituation (challenges,needs, plans)

§ Evaluation of a potentialto-be solution architecture

§ Presentation of SAP‘stechnological features andfunctions related to HANAand S/4 HANA

§ DB-check and customcode analysis (for onebusiness unit)

§ Definition of technical to-be architecture

§ Evaluation matrix fortransformation roadmap

1 Enablement andevaluation workshopswith BUs

2 Technical assessmentwith IT

§ Documention of main results:§ Use cases for each BU§ Migration roadmap§ (Cost framework)§ Value proposition and –

calculation framework§ Recommendation§ Management presentation

3 Project documentationand presentation

Project procedure


Relevant and valuable topics per business unit

GB 1 GB 2 GB 3 GB 4 GB 5 GB 6 GB 7 GB 8 GB 9

GB: Business Unit


Evaluation of the current ERP and BW landscape with regards toHANA readiness and vakue potential... …to categirize them into three

categories S, M and L:

SAP ERP PostAuto PostFinance PostFinance

SID P11 P20 P29HANA Hauptspeicher (GB) 821 920 100

Klassifizierte DB Grösse Klein Mittel KleinUnicode Migration Ja Ja Nein

Release Update Nein Nein NeinKlassifizierung Anzahl Z-

Programme Gross Klein KleinDB Migrationsaufwand Niedrig Niedrig Niedrig

Nutzen IT Hoch Hoch HochNutzen Business Hoch Hoch MittelNotwendigkeit Mittel Mittel Mittel

Klassifizierung ( S - M - L ) M S S

Segmentation and first transformation roadmap

GB 1 GB 2 GB 3X Y


Roadmap für ERP on HANA (1. Schritt)

§ 5 to 6 „compatible“ systemtransformations per year

§ Consideration of 15 mainly IT-driven evaluation criteria

à In the 1 HY of 2020 all SAP ERP andBW systems are running on the HANADB and are ready for a S/4 HANAmigration (depending on maturity leveland progress even earlier)

Technically driven evaluation – strategic IT decisionTechnical readiness as main focus (+ contractual situation)Detailed S/4 HANA business use cases evaluated in the following second step

S M L GB = BU


§ Enablement workshops with all 9 business units§ Technical landscape analysis and evaluation§ Development of a joined roadmap and recommendation:

§ Relevant use cases for BUs§ Evaluation criteria and -matrix§ Migration roadmap§ (Cost framework)§ Recommendation§ Management summary and presentation

Project procedure and deliverables


Our support services for your S/4 journey

Partner to answer the relevant questionsrelated to:

§ Enablement & IT-roadmaps

§ Technical analysis (e.g. custom code analysis,readiness check, sizing, migration planning)

§ Migrations- and deployment scenarios

§ Cost-benefit-analysis, ROI, TCO

§ Decision paper and management presentation

Services


Your contact person

Keywan NadjmabadiHead of Business Transformation Services

SAP Switzerland [email protected]+41 79 500 68 55

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