SAP S/4 HANA

Solution OverviewAugust 2015

Method360S/4HANAWhat is really new in SAP S/4HANA compared to SAP Business Suite powered by SAP HANA?

Method360S/4HANAWhat is really new in SAP S/4HANA compared to SAP Business Suite powered by SAP HANA?

SAP Business Suite on HANA is optimized for SAP HANA Database• Real-time OLAP capabilities inside the

ERP system allows you to run all your operational reports directly in the source data using SAP HANA Live

• Fiori Smart Business Cockpits using SAP HANA Live providing real-time insights in real-time Business Processes

• Free Text searches – google-like experience in ERP improving for example customer service by reducing customer response times w regards to sales orders

• Eliminate batch processes and enable real-time operations like in Plant Maintenance

SAP S/4HANA is a new product and completely new and reimagined suite: • Massive simplifications (simplified data

model: no indexes, no aggregates, no redundancies)

• SAP S/4HANA is natively designed with SAP Fiori UX, offering an integrated user experience with modern usability and instant insight on any device)

• SAP S/4HANA is natively connected to the Internet of Things and business networks for real-time collaboration

• Natively engineered for providing choice of deployment (on premise, cloud and hybrid)

• SAP S/4HANA is natively born for easy adoption (guided, configuration, and easy onboarding)

SAP Business Suite on HANA SAP S/4 HANA

Method360S/4HANASAP S/4HANA Changing How our Applications Execute

Changing Execution Patterns

Method360S/4HANASAP S/4HANANext Generation Business Suite

Method360S/4HANASAP S/4HANANext Generation Business Suite

Rebuiled

Method360S/4HANA

The New Architecture • Motto: “Take the best of all worlds” (e.g. ledger, market segment, coding block etc.) • Secondary cost elements are G/L accounts • One line item table with full detail for all components • Data stored only once: no reconciliation needed by architecture • Reduction of memory footprint through elimination of redundancy. • Fast multi-dimensional reporting on the Universal Journal possible without replicating data to BI. • If BI is in place anyway, only one single BI extractor needed (instead of many today) • Technical preparation done to enhance important structural capabilities of the Financials solution

SAP S/4HANAUniversal Journal Single Source of Truth

Study to move to notes

Method360

Profitability Analysis

S/4HANASAP S/4HANA Universal Journal

“Universal Journal is a new single repository (line item table) for all journal entries including GL, Cost Elements, Asset Accounting and Material Ledger”

• One line item table replaces the logical document• Views from prior iterations are now in “compatibility views”• All reporting tools can access Universal Journal table• Cost Elements and G/L Accounts merge into one bit of master data• No longer necessary to align GL with Asset Accounting

Management Accounting

Asset Accounting Material Ledger

General Ledger

Universal Journal

Plann

ed In

nova

tion

Method360S/4HANASAP S/4HANAPerformance Optimizations

Method360S/4HANASAP S/4HANA Exchange Innovations

• Cloud edition: SAP is leading the S/4HANA innovation with the S/4HANA cloud edition, releasing 4 upgrades every year

• On premise: SAP will bundle once a year for on premise customers

4 vs 1

Method360S/4HANASAP S/4HANA Exchange Innovations Vs Innovations

If you implement SAP S/4HANA on premise, you are technically implementing SAP Business Suite on SAP HANA and deploying the “exchange innovation” for SAP Simple Finance

• SAP plans to ship the code for SAP Simple Logistics at the end of the 2015 and further new code in subsequent years

• SAP will continue to deliver additional exchange innovations that replace the existing SAP Business Suite code with the new SAP S/4HANA code

• sFin is mandatory for all additional, future innovations, as S/4HANA is a fully integrated system

Method360S/4HANASAP S/4HANA Fiori User Interface

SAP Fiori is the new user experience for SAP software across the enterprise. Built to improve productivity, increase adoption and decrease training costs, and to enable your business to run more efficiently and effectively

SAP S/4HANA Implementation Road Map

Method360S/4HANAHow long does an SAP S/4HANA implementation take?

75% of customers that have migrated their existing SAP Business Suite on HANA as the first

major step in moving to SAP S/4HANA have done so within six months

Method360S/4HANASAP S/4HANAAfter the conversion

4

INSTALLInstall Exchange Innovation

(new Code)

5

VALIDATION

S/4 Strategy and Business Case

New Reporting7

Fiori UI7

BW – Operational Reporting

7

HOW MUCH CHANGE?

QA and Change Management / Communication

6

STABILIZE

Method360S/4HANAMigration to S/4 HANA

• S/4 HANA is using the new data model optimized for the new code line

• Data will be migrated from the old data model to the new data model during the activation of the new code line within the innovation exchange processes.

• As part of this process, data is deleted from the now obsolete auxiliary tables like aggregates and secondary indices

Note: • Migration of Data happens when you do activation of the innovation

exchange process, which is after the HANA migration step.

• Deletion of Index / Aggregates is the basis for the extensive footprint reduction from the SAP Business Suite to S/4Hana

Method360S/4HANASAP S/4HANAReadiness

New Reporting7

Fiori UI7

BW – Operational Reporting

7

• Clear Adoption Strategy• Change Management• Training and Job Aids• By Group? By Geography?

By LOB?• New Process Consideration• IT Support Ready?• Internal IT have new Skills?• Performance Validation

Method360S/4HANASAP S/4HANAReadiness

Don’t Forget1. Migration to HANA needs separate project with validation

along the way2. Applying the Exchange Innovation needs to be validated via

Sandbox to ensure no surprises on your landscape• Migration to S4 Finance and deletion of index and aggregates• Validation of all ECC integration and reporting• Validation of inbound/outbound integration

3. Develop your roadmap and communicate• Stabilize• New Reporting • Operational Reporting Shift• UI Fiori Role out• BW decom?

Method360S/4HANA

SAP S/4HANAQA Areas

• What does this effect?– Transactional integration– Reports, Forms, Queries, user exits– Integration – InBound / OutBound– BW extraction– 3rd part tools

SAP S/4HANAQA Focus

Operational Reporting

Method360S/4HANASAP S/4HANAWhere does BW fit?

• While analytics in S/4HANA is operational, there is 2 facts that make non-operational and strategical analyses challenging: – It is likely that enterprise data sits in more than 1 system.– Data that originates from various systems is probably not

clean and consistent when being combined.• ("single version of the truth") - Data Warehouse fundamental

task is to expose the enterprise data in a harmonized and consistent way

• S/4 puts operational reporting back where it belongs, embedded with the processes. and Fiori will be a great skill to acquire. Modeling and / or the process of relating data still needs to occur for Advanced Analytics.

Method360S/4HANASAP S/4HANAWhere does BW fit – Current Talk Tracks

SAP BW will continue to act as the central enterprise data warehouse solution.

• SAP BW will continue to represent the preferred solution for strategic enterprise data warehousing to help customers consolidate data from different sources (including SAP and nonSAP data sources) and get a consistent view across the enterprise.

• SAP S/4HANA delivers built-in real-time operational reporting capabilities covering all typical analytics use-cases in the context of the suite.

• BW capabilities are crucial in the move to S/4HANA as the mixed scenarios in BW allows business users to run reports partially on the old and the new data model.

• Near real-time data access can be accomplished with SLT• Operational Reporting should go back to where it belongs, to the source, to the

Business Process Management system, an not in a data mart.

Method360S/4HANASAP S/4HANAOperational Reporting

SAP HANA 1.0 SP 506

S4 HANAHANA

LIVE IPB

Fiori UI

Reporting and Visualization

BW on HANA

BW Extractors

Source

Source

Operational Reporting

Enterprise Reporting

SLT Source

Source

1. Rebuild Operating reporting in S4?2. Leverage Views in HANA live3. How much Transformation you doing as part of BW 4. Need to fix Data in S4 or Transform as staging step5. Strategy to move Operational reporting over

Fiori UI

Method360Analytics on S4

All of the Analytical tools with which SAP customers are familiar can be optimized on the HANA database using the S/4 Finance Platform. Strong capabilities in each of the following disciplines are available:“Views” of S4 Finance tables are accessible by these applications as well.

SAP HANA 1.0 SP 506SAP In-Memory Computing Engine

SAP HANA S4 Finance

Business Objects BI Platform 4.0 SP06

ODBC

Semantic Layer Universe

JDBC OLAPODBC JDBC

BI Client ProductsCrystal

Reports Dashboards

Webi

Design StudioAnalysis for

OLAP

Analysis for Office

BOBJ Explorer Lumira

M = Mobile Ready

M M

M

M M

S/4HANA

Method360S/4HANASAP S/4HANAHANA Enterprise

HANA Base Data

Model

HANA Data Joins and

Aggregation

HANA Calculated Measures and Dims

HANA VIEW

Building your DW in HANA Enterprise

• Enterprise Data• External Data Dependencies• Duplication of Solution

Method360

Modeled Planning/Forecasting Interface Options

FP&A on Simple F inancePlanning/Forecasting (IBP)

Integrated Business Planning (IBP) is essentially a rebranding of BPC 10.1 Embedded for S4 Finance

Sim

ple

Fina

nce

HANA S/4Planning Application Kit

(PAK) Modeling/Planning on S4 Finance

Read/Write

BPC 10.1 Embedded

BOBJ Analysis for Office

SAP Design Studio

• Cost Center• Internal Order• Project Planning• Profit Ctr• P&L• Market Segment• Balance Sheet

Sim

ple

Fina

nce

Plan

ning

Method360FP&A on Simple F inanceThank You

E N D - T O - E N D S E R V I C E S . H I G H VA L U E S O L U T I O N S .

Sales Positioning

Method360S/4HANA

Method360S/4HANASAP Business Suite 4 HANA - S/4HANA

• SAP S/4HANA is the next-generation business suite. It is a new product fully built on the most advanced in-memory platform today – SAP HANA – and modern design principles with the SAP Fiori user experience (UX). SAP S/4HANA delivers massive simplifications (customer adoption, data model, user experience, decision making, business processes, and models) and innovations (Internet of Things, Big Data, business networks, and mobile-first) to help businesses run simple in the digital economy

• S/4HANA is an ERP innovation based on a new and radically simplified data model design concept which is only possible with an in-memory database like SAP HANA

• Based on the new data model, S/4HANA replaces successively the old code line with a new code line which is unconstrained from the confinements of the traditional databases and which allows SAP, partner and customer developers to maximize the benefits of the modern in memory database technology to the fullest extent.

• Modern in-memory technology as in SAP HANA we define as in-memory first processing instead of replicating a subset of data from disc to memory

• Two Version: On Premise and Cloud and Hybrid

Method360S/4HANABW is still required

• SAP BW will continue to represent the preferred solution for strategic enterprise data warehousing to help customers consolidate data from different sources (including SAP and nonSAP data sources) and get a consistent view across the enterprise. SAP BW has also been optimized to run on the SAP HANA platform: SAP BW powered by SAP HANA.

• SAP S/4HANA delivers built-in real-time operational reporting capabilities covering all typical analytics use-cases in the context of the suite. Therefore, SAP BW will continue to act as our central enterprise data warehouse solution.

• BW capabilities are crucial in the move to S/4HANA as the mixed scenarios in BW allows business users to run reports partially on the old and the new data model.

• Near real-time data access can be accomplished with SAP LT SAP LT aka SLT, DXC, or with SDA (SAP HANA Smart Data Access) in real-real time without data replication.

• Operational Reporting should go back to where it belongs, to the source, to the Business Process Management system, and not in a data mart. Financial closing and consolidation can be done at the source in ERP with sFin and the embedded BW, especially if a customer has a single ERP FI system.

DW/BW Drivers:• While analytics in S/4HANA is operational, there is 2 facts that make non-operational (i.e. beyond a single, isolated business

process) and strategical analyses challenging: – It is likely that enterprise data sits in more than 1 system.– Data that originates from various systems is probably not clean and consistent when being combined.

• Data Warehouse fundamental task is to expose the enterprise data in a harmonized and consistent way ("single version of the truth").

• S/4 puts operational reporting back where it belongs, embedded with the processes. and Fiori will be a great skill to acquire. Modeling and / or the process of relating data still needs to occur for Advanced Analytics.

• There are new info provider types like Composite provider, Open ODS View and Advanced DSO. They are all new in BW (starting mostly with 7.4). Even the Business Content has been and is being adapted/enhanced to HANA based technologies to make use of it. Hence I can't follow you in that point either.

http://scn.sap.com/community/bw-hana/blog/2015/04/13/s4hana-and-data-warehousing

Method360S/4 HANAkey benefits for a customer to move now to SAP S/4HANA?

Key benefits for a customer to move now to SAP S/4HANA?

• SAP’s vision and strategy is to help customers run simple in the digital economy. To deliver on this mission, we are redefining how enterprise software creates value.

• SAP S/4HANA is designed to drive instant value across lines of business and industries with the ultimate sophistication: simplification

• From an IT value perspective, this means that SAP S/4HANA creates unique opportunities to simplify the landscape and help reduce total cost of ownership (TCO) with SAP HANA as the great simplifier. Enterprises can now reduce their data footprint and work with larger data sets in one system

• HOW:– Enterprises can now easily connect to people, devices, and business networks to deliver new value

to their customers on any channel – the Internet of Things and Big Data become accessible to any business.

– Enterprises can dramatically simplify their processes, drive them in real time and change them as needed to gain new efficiencies – no more batch processing is required. And finally, business users can now get any insight on any data from anywhere in real-time: planning, execution, prediction, and simulation – decisions may be made on the fly with a high level of granularity for faster business impact

Method360S/4 HANAKey benefits for a customer to move now to SAP S/4HANA?

Key facts about SAP S/4HANA: Smaller total data footprint Higher throughput Faster analytics and reporting Less process steps ERP, CRM, SRM,SCM, PLM co-deployed No locking, parallelism Actual data (25%) and historical (75%) Unlimited workload capacity Predict, recommend, simulate SAP HANA Cloud Platform extensions SAP HANA multitenancy All data: social, text, geo, graph, processing New SAP Fiori UX for any device (mobile, desktop, tablet) Choice of deployment: on premise, cloud, hybrid

Method360S/4 HANAHow can I try SAP S/4HANA?

How can I try SAP S/4HANA? A free 14-day cloud edition trial system is available to help you experience the value of simplicity across key business scenarios: project manager scenario, cash manager scenario, general ledger accountant scenario, accounts receivable accountant scenario, accounts payable accountant scenario

You can access the trial on: www.sap.com/s4hana-trial

http://www.sap.com/bin/sapcom/en_us/downloadasset.2015-03-mar-02-23.sap-s-4hana-frequently-asked-questions-pdf.bypassReg.html

Method360S/4HANAExchange Innovations Vs Innovations

• If you implement SAP S/4HANA on premise, you are technically implementing SAP Business Suite on SAP HANA and deploying the “exchange innovation” for SAP Simple Finance.

• SAP plans to ship the code for SAP Simple Logistics at the end of the 2015 and further new code in subsequent years. By the time we reach the end of this journey, we will have incrementally switched the customer’s entire system without subjecting it to the upheaval of a big-bang migration.

• SAP will continue to deliver additional exchange innovations that replace the existing SAP Business Suite code with the new SAP S/4HANA code.

• sFin is mandatory for all additional, future innovations, as S/4HANA is a fully integrated system. A customer can choose if and which innovations to be switched on and when. Means a customer could decide to run sFin now, and sLog later or not at all.

Method360S/4HANA

Method360S/4HANASAP Business Suite on HANA

SAP Business Suite on HANA is optimized for SAP HANA database to the maximum extend of what is possible using a single code line which SAP Business Suite on HANA shares with the SAP Business Suite. Some of the optimizations are:

• Real-time OLAP capabilities inside the ERP system allows you to run all your operational reports directly in the source data using SAP HANA Live

• Fiori Smart Business Cockpits using SAP HANA Live providing real-time insights in real-time Business Processes

• Free Text searches – google-like experience in ERP improving for example customer service by reducing customer response times w regards to sales orders

• Eliminate batch processes and enable real-time operations like in Plant Maintenance

Method360S/4HANAWhat is really new in SAP S/4HANA compared to SAP Business Suite powered by SAP HANA?

• SAP S/4HANA is a new product. With SAP S/4HANA, we are building on the success of the SAP Business Suite powered by SAP HANA with a completely new and reimagined suite: SAP S/4HANA is running on SAP HANA for massive simplifications (simplified data model:

no indexes, no aggregates, no redundancies) and innovations (for example, open in-memory platform for advanced applications predicting, recommending, and simulating)

SAP S/4HANA is natively designed with SAP Fiori UX, offering an integrated user experience with modern usability and instant insight on any device (role-based, three steps max to get the job done, mobile-first, consistent experience across lines of business)

SAP S/4HANA is natively connected to the Internet of Things and business networks for real-time collaboration (planned: machine-to-machine, Ariba Network, Concur) in the networked economy

SAP S/4HANA is natively engineered for providing choice of deployment (on premise, cloud and hybrid)

SAP S/4HANA is natively born for easy adoption (guided, configuration, and easy onboarding, from the discovery of the solution through cloud trials to deployment with preconfigured best practices)

Method360Simple F inance: E l iminated TablesAppendix

Index Tables:• BSIS: GL Accounts• BSAS: GL Accounts: Cleared Items• BSID: Customers• BSAD: Customers: Cleared Items• BSIK: Vendors• BSAK: Vendors: Cleared Items• BSIM: Material Documents• FAGLBSIS: GL Accounts: New G/L• FAGLBSAS: GL Accounts: New G/L: Cleared Items

Aggregate Tables:• GLT0: General Ledger: Totals• GLT3: Summary Data Prep: Consolidations• FAGLFLEXT: New GL: Totals• KNC1: Customer Master: Transaction Figures• LFC1: Vendor Master: Transaction Figures• KNC3: Customer Master: Special GL Transaction

Figures• LFC3: Vendor Master: Special GL Transaction

Figures• COSS: Cost Totals: Internal Postings• COSP: Cost Totals: External Postings

Remaining physical tables are Line Items based. All dimensions are available for fast analysis with SAP HANA. There are no limitations by pre-defined totals or aggregates as before. Data structures can be easily enhanced with custom dimensions (just update the line item table). All deleted tables are replaced by HANA CDS views. Suppressions will not affect existing custom ABAP code as long as such code is not writing in one of those tables: custom programs and reports with read access to old tables will continue to work.