sap transformation navigator – representative

SAP Transformation Navigator – Representative Transformation Guide

What is the SAP Transformation Navigator?

The SAP Transformation Navigator is a complimentary, self-service tool which instantly summarizes the specific products a company needs to take its business to the next level of disruptive innovation - using an SAP S/4 HANA-centric landscape.

What is this Transformation Guide?

The SAP Transformation Navigator generates a custom product map and transformation guide which summarize the model you developed in the tool.

This is a sample comprehensive transformation guide which represents a typical customer within this industry. As you explore this guide, imagine how your own company would prioritize business and value drivers and how your landscape might evolve. Designed to serve as your road map to transformation, this 150+ page document includes the following sections:

Business guide: Review information on where you want to take your business, where your priorities lie, the value drivers for success, and expected outcomes.

Technical guide: Understand how your landscape could evolve, what you need to plan for, and how your migration can happen.

Transformation guide: Find out what you are licensed for today and what you need to migrate or add; see customer stories relevant to your choices and get a sample timeline for making the transition to SAP S/4HANA.

What are my next steps?

Build your own custom product map from the start or by leveraging predefined industry templates, and generate transformation guide using the SAP Transformation Navigator.

Access the tool online at www.sap.com/transformationnavigator and log in with your s-user id (note: access is part of your SAP maintenance subscription).

Contact [email protected] for more information.

www.sap.com/contactsap

© 2020 SAP SE or an SAP affiliate company. All rights reserved.No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they should not be relied upon in making purchasing decisions.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies. See http://www.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

CEMENT_TEMPLATE | SAP | PUBLIC2020-06-18

SAP Transformation NavigatorYour Business – Technical – Transformation Guide

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Navigator session of this document.

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Content

About This Document. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

1 Your Business Guide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

2 Your Technical Guide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

3 Your Transformation Guide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2 P U B L I CSAP Transformation Navigator

Content

About This Document

● The SAP Transformation Navigator is our response to customers who asked for clear guidance for becoming a Live Business.

● The self-service aspect of the tool helps you go from seeing the need for digital transformation to starting the journey.

● Three guides explain everything there is to know about the SAP Transformation Navigator– Business Guide, Technical Guide, and Transformation Guide.

● The guides will help align all stakeholder groups in your company, and guide the way forward.

Clear Guidance In this digital economy, it’s winner takes all, and early movers are typically the winners. But, there’s a big difference between understanding the need to move into this area, and knowing how to make that move.

Don’t Worry – We’ve Got You Covered.

We’ll help you choose the best SAP products and solutions for your digital transformation journey, and show you how those products can evolve. We’ll also walk you through integration scenarios, help you evaluate the costs involved, and reveal the business value to help you unlock your new digital IT landscape. We’re here to provide you with a clear path to an IT landscape that’s ready to capture digital opportunities quickly and efficiently. With access to three-year product timelines and expanded details under each milestone along the way, you’ll have all the information you need to embark on your digital transformation to become a Live Business.

SAP Transformation Navigator

The application guide for SAP software is a self-service cloud tool that offers you clear guidance on navigating your SAP S/4HANA centric landscape. Through this tool, we recommend products, provide release information, show business value, discuss integration, offer services, and provide guidance on license transformation.

Set of Three Guides: Business Guide - Technical Guide – Transformation Guide

To support all necessary stakeholders in your organization and to comprehensively frame the additional work needed, the SAP Transformation navigator generates a set of three guides. A business guide, a technical guide, and a transformation guide. Each guide summarizes all information and decisions of the self-service tool, but enriches them with relevant overall SAP information and with an overview of the follow-up work, that we've seen useful in many customer cases.

More specifically, the Business Guide covers:

● Industry breakthrough trends and strategic objectives.● A summary of potential changes to your business' capability.● Value driver aspirations and tracking possibilities.● Way forward options for a more in-depth transformation case calculation.

In the Technical Guide, we cover the digital framework and reference landscape outlook, summarize your go-to guidance on currently used applications, and list advanced system and landscape analysis options.

The Transformation Guide starts with overall transformation scenarios and the SAP services involved, summarizes your transition heatmap and prioritization, and outlines the planning, timeline and commercials way forward.

SAP Transformation NavigatorAbout This Document P U B L I C 3

As Easy as Possible, but Not Ignorant of The Necessary Detail

With the scope of the SAP Transformation Navigator and guides, we have tried to make as much as possible a self-service experience. Nonetheless, we acknowledge that in a number of cases additional work is needed. That's why there's a chapter in all three guides that provides an overview of the next steps to take, which in our experience are either necessary or helpful. These tasks are best left to SAP IT specialists, and we'd be happy to help you get the work done.

We are looking forward to the discussion with you on your journey.


About This Document

1 Your Business Guide

Breakthrough Trends and Strategic Objectives ● Industry Challenges● Strategic Priorities● Strategic Value Drivers● Transformation Reference Cases● From Business Strategy to SAP Solutions

Business Capabilities and Value Aspiration ● Selected Capabilities Currently Used● Selected Capabilities Required in Addition● Capabilities on Recommended Products Compared to

Current Products● Value Driver Priority Selection and Aspiration● Value Realization Tracking

Business Case, Realization Tracking, and Change Management

● Build Your Transformation Case○ Guided Business Case with SAP VLM○ Consistent Framework for Transformation Project

using SAP TCO Model Elements● Value Realization● Align IT and Business - Especially Regarding Functional

Coverage● Digital Innovations

SAP Transformation NavigatorYour Business Guide P U B L I C 5

2 Your Technical Guide

Digital Framework and Reference Landscape Outlook ● The Roadmap to the Intelligent Enterprise● Reference Product Map:● SAP Road Map Explorer● Cloud Integration

Guidance on Currently Used Applications ● Guidance per Current Product● Industry Reference Product Map Coverage● Integration and Transition Guides

Advanced System and Landscape Analysis ● Scoping the Digital Core● Advanced System Analysis● Country and Language Coverage / Global Solutions

Without Boundaries● Consistent Framework for Transformation Project using

SAP TCO Model Elements● SAP HANA Enterprise Cloud: Your Accelerated Path to

SAP S/4HANA Cloud


Your Technical Guide

3 Your Transformation Guide

Basic Transition Scenarios and License Policies ● Basic Transition Scenarios● License and Subscription Policies

Transition Heatmap and Prioritization ● Transition Types and Services● Transition Heatmap● Licenses and Subscriptions for Your Target Product Map

Planning, Timeline and Commercials ● Conversion Versus Greenfield Decision● Starting Point Determination and Selection of The Mi

gration Path● Proposal for The Next Steps – Leverage Complement

ing Tools and Services● Service Offerings by Partners

SAP Transformation NavigatorYour Transformation Guide P U B L I C 7

Legal Disclaimer

The information in this document is not subject to your license agreement or any other service or subscription agreement with SAP. Previews or any related presentation and SAP's strategy and possible future developments, products, platforms, directions, and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information is not a commitment, promise or legal obligation to deliver any material, code, or functionality. This information is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in the document, except if such damages were caused by SAP´s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.


Legal Disclaimer

sap.com/TransformationNavigator

© 2018 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. The information contained herein may be changed without prior notice.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary.


SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.

Please see https://www.sap.com/about/legal/trademark.html for additional trademark information and notices.

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Your Business GuideSAP Transformation Navigator

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Content


1 Breakthrough Trends and Strategic Objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.1 Cement-Strategic Industry Challenges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.2 Cement-Strategic Priorities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.3 Cement-Strategic Value Drivers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61.4 Transformation Reference Cases: Cement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71.5 From Business Strategy to SAP Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2 Business Capabilities and Value Aspiration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102.1 Selected Capabilities Currently Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102.2 Selected Capabilities Required in Addition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142.3 Capabilities of Recommended Products Compared to Current Products. . . . . . . . . . . . . . . . . . . . . .152.4 Value Driver Priority Selection and Aspiration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222.5 Value Realization Tracking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

3 Business Case, Realization Tracking, and Change Management. . . . . . . . . . . . . . . . . . . . . . . . 313.1 Build Your Transformation Case. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Guided Business Case with SAP VLM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Consistent Framework for Transformation Project using SAP TCO Model Elements. . . . . . . . . . . 32

3.2 Value Realization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343.3 Align IT and Business - Especially Regarding Functional Coverage. . . . . . . . . . . . . . . . . . . . . . . . . . 353.4 Digital Innovations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

2 P U B L I CYour Business Guide

Content

About This Document

● The Business Guide aims to help you go from seeing the need for digital transformation to starting the journey towards that move.

● It summarizes the output of the SAP Transformation Navigator self-service tool regarding the business perspective. The Technical Guide and Transformation Guide are also available to comprehensively address all stakeholder needs.

● The Business Guide depicts the industry's breakthrough trends, the potential changes to your business' capability and your value driver aspirations. It also provides guidance on way forward options, business case, and realization tracking going forward.

In this digital economy, it’s winner take all, and early movers are typically the winners. But, there’s a big difference between understanding the need to move into this area and knowing how to make the move. With the SAP Transformation Navigator, we offer a comprehensive self-service tool to start the journey.

This business guide:

● Summarizes all information and decisions you have made in the SAP Transformation Navigator self-service tool.

● Enriches the information and decisions with relevant overall SAP information and with an overview of the follow-on work that we have seen to be useful in many customer cases.

The storyline starts from a strategic perspective, summarizes the need for action, and outlines the necessary follow-up work

Breakthrough Trends and Strategic Objectives for Your Industry

Based on industry trends and the new set of technical possibilities, which includes reference cases to help build the story for your company.

Your Business Capability Changes and Realization Tracking

Based on the selected product map and recommendations, we can list the available business capabilities and associate the relevant value drivers. Based on aspiration ranges from our implementation experience, a personal value aspiration is set and linked to realization tracking opportunities.

Change Management, Business Case and Realization Tracking to Shape Your Way Forward

Planning for the business impact and keeping track of the value realization can be a challenge. Also, ensuring proper and timely engagement of key business representatives in designing the journey should be considered. In addition, corporate strategy-aligned digital innovation portfolio discussions early on in the transformation journey have proven to be key.


Your Business GuideAbout This Document P U B L I C 3

1 Breakthrough Trends and Strategic Objectives

This chapter provides a short overview on the market challenges we see for the cement industry and its main strategic priorities, complemented by value drivers and customer references. To get a deep dive into the trends shaping the industry and the path to innovation, you can access the Building Products Whitepaper.

1.1 Cement-Strategic Industry Challenges

The cement industry is being reshaped by the following major trends

Urbanization Urban expansion combined with the overall growth of the world's population will continue to drive significant demand for construction and building materials companies beyond 2025. This growth comes with important environmental challenges, such as how to sustainably use limited space, how to provide infrastructure for increased traffic, and how to satisfy increased water and electricity consumption.

Globalization and Right Shoring

Increasing customer expectations as well as continuing geopolitical uncertainties add risk along the entire supply chain – from procuring raw materials to production and delivery. Companies will need the ability to shift resources, production, and financial funds around the globe in a flexible way to make the best use of regulatory and location advantages and to best meet customers’ changing requirements.

Circular Economy

A mind shift is happening among consumers, employees, suppliers, and investors, resulting in businesses needing to consider purpose and sustainability. A circular economy requires a change in the complete supply and production processes from a take-make-use-dispose flow to a circular approach that considers reuse and zero waste.

1.2 Cement-Strategic Priorities

We have identified the following strategic priorities for cement companies that require new capabilities along the value chain.

Delivering a superior customer experience

In 2025 building materials companies will play a significant role in point-of-sale interactions with end consumers – today the domain of retail and wholesalers. In some cases, they will even own the point of sale and interact directly with the end consumer, bypassing third parties. They will be able to maintain "customer-for-life" relationships with a focus on long-term value supported by a 360-degree understanding of customers. This includes a detailed


Breakthrough Trends and Strategic Objectives

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understanding of requirements and needs and also collection and analysis of the ongoing knowledge of how consumers use the products in their daily operations. They will interact with their customers seamlessly on a consistent basis through multiple channels from Web to direct and including IoT connectivity. And they will communicate regularly with consumers tracking their own goods throughout the entire ecosystem.

Connecting and automating the enterprise

Tomorrow’s enterprise needs to run in a highly automated fashion to ensure operational efficiency. It also needs to be tightly connected with other players in the network. Companies must execute in an automated fashion to achieve operational efficiency and tightly integrate with their networks of supply and demand. This will require increased automation throughout all processes, not just on the shop floor. It will include the use of new technologies such as bots, augmented reality, and machine learning to increase efficiency and be able to promise and deliver orders on time as expected. Capturing the experience of all involved parties (suppliers, employees, and customers) will provide the necessary feedback and build the foundation for change.

Supporting enhanced business models and value added services

To compete in a world of blurring industry boundaries and new players in well established industry segments, you need to be prepared to enhance your product and solution portfolio. Construction projects and home remodelling projects are difficult to manage. Building materials companies can ease this by providing additional services beyond the traditional products. The supplier-to-customer relationship will convert to a partnership where the building materials company helps its customers excel in their business.

Your Business GuideBreakthrough Trends and Strategic Objectives P U B L I C 5

Building a responsible and sustainable business

We are moving toward a purpose-driven economy globally. A mind shift is happening across consumers, employees, suppliers, and investors that is incentivizing companies to deliver on their purpose and act responsible in the light of climate change. To succeed in the future, cement companies will, of course, still need to deliver financial performance, but they will also have to show how they are making a positive contribution to society, preserving the planet and natural habitat, and working to solve some of the world’s greatest challenges. With natural resources being limited on this planet, there is increased awareness of the ecological footprint of a product. Companies will strive for fair labor conditions and minimize waste and their consumption of raw material, water, and energy. Advanced product performance and ease of use will be paired with low environmental impact throughout the product lifecycle. Worker safety will also continue to be a strong focus.

.

1.3 Cement-Strategic Value Drivers

Find here a list of strategic KPIs – so-called Value Drivers – that are relevant per Strategic Priority in your industry. If available, improvements achieved by other SAP customers are specified.

Achieving customer centricity ● 10‒20% increase in revenue from new products/services● 10‒20% increase in customer satisfaction● 10‒15% increase in revenue growth with better product personalization

Running smart factories and digital networks

● 10–20% increase in on-time delivery performance● 2‒3% reduction in total manufacturing costs● 8–10% reduction in revenue loss due to stock-outs● 10–12% reduction in days in inventory

Supporting value-added services and new business models

● 3‒10% improvement in service profit margin● 10‒20% increase in service revenue from new business models● 10‒20% increase in customer satisfaction

Operating for purpose ● 5‒20% increase in environmental safety and compliance



● 10‒20% increase in employee engagement

Most SAP products and capabilities have one or several value drivers assigned, indicating their contribution to that specific KPI – in chapter 2.4, Value Driver Priority Selection and Aspiration [page 22], you can review your current selection of value drivers based on the products you selected in SAP Transformation Navigator.

1.4 Transformation Reference Cases: Cement

With Peru’s construction market booming, cement producer Cementos Pacasmayo S.A. has achieved significant year-over-year growth in recent years. To unlock further growth potential, the company wanted to shift its business model to offer a range of construction services directly to end customers rather than just supplying cement-based products through distributors. In support of this transformation, the company recognized that it needed a digital core to help accelerate processes, boost manufacturing performance, and provide real-time insights.

Jiangsu Leida Co. Ltd. is a leading Chinese building materials provider. Producing cement used in buildings, bridges, and tunnels across the country, the company is committed to improving product and service quality. To adapt to the rapidly changing market and promote steady operations and sustainable growth, Jiangsu Leida needed to transform its business processes and create an intelligent enterprise. Now, the company is laying a solid foundation for the future development of the building materials sector.

Quality, technology, and trust – the three reasons why Century Cement has been at the helm of the cement industry for the past 40 years. As the leading brand in a country that is the second-largest cement manufacturer worldwide after China, Century Cement is a pioneer in producing quality products with customer-centric services. With customer needs guiding its business plans, the company wanted to upgrade to a platform that offered enhanced operational capabilities, better business performance-tracking insight, and real-time information and analytics.Century Cement worked with KPIT to migrate to the SAP S/4HANAEnterprise Management solution and optimized business operations, streamlined data management processes, and reduced the time it takes to execute reports. This migration has given Century Cement access to real-time data, which provides a seamless consumer experience and a competitive edge.


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1.5 From Business Strategy to SAP Solutions

Value Map Example (Business Priorities and Solutions)

SAP links industry strategies to supporting software solutions via Value Maps.

Access the up-to-date Cement Value Map with all details here.

At the top level, the Value Map reflects strategies specific to the industry as Business Priorities.

Business Priorities can be either:

● essential for value creation and differentiation in the industry (Core Industry Priorities) or● required in addition for running the business (Cross Enterprise Supporting Priorities) or● outlining related Business and Technology needs (Business Technology Platform).

Each Business Priority is broken down into Solutions. Every Solution addresses a specific business scope and is delivered as a combination of Capabilities that work together. Capabilities represent the most granular level. They describe specific business needs and links them to specific SAP software that fulfills them.



https://solutionportfolio.net.sap/industry/CEMENT

There are cases where SAP can address the same business need with different software, e.g. with different deployment modes, levels of sophistication or industry specificity. Industry Value Maps always represent SAP's recommendation of specific software, related Capabilities and Solutions that are typically the best choice for a "best run" business in an industry. Therefore, a Value Map is also an ideal starting point for assessing and enabling new business strategies by leveraging SAP's industry knowledge and software implementation expertise.

In SAP Transformation Navigator you can browse the value maps, select specific solutions, and view related product recommendations via the Add Capability feature.


https://go.support.sap.com/transformationnavigator

2 Business Capabilities and Value Aspiration

2.1 Selected Capabilities Currently Used

Transformation of your current landscape: This table shows the capabilities that you have selected for your currently used products, grouped by line of business or line of technology and capability area. The list also shows the related recommended products and, if applicable, the validity date of the recommendation. The table is empty if your product map does not contain current products that require a selection of capabilities, or if you have not made any selection or decision yet. Such selection of capabilities is only available and required for bigger, complex products like SAP ERP, SAP CRM, and some smaller industry-specific products.

Current Product selected

Line of Business/Technology

Business Area

Capability used

Deployment Preference

Recommended Capability

Recommended Products

Available as of

SAP ERP Commerce Store Commerce

Store Connectivity

On Premise Store Connectivity (S/4 OP)

● SAP S/4HANA

now

SAP ERP Corporate Finance

Procure to Pay

Invoice Processing

On Premise Invoice Processing (S/4 OP, Leonardo)

● SAP S/4HANA

now

SAP ERP Human Resources and Administration

Core HR and Payroll

HR Administration

Cloud People and Transactions (SuccessFactors)

● SAP SuccessFactors Employee Central

now


Core HR and Payroll

Payroll Cloud Payroll Processing (SuccessFactors)

● SAP SuccessFactors Employee Central

● SAP SuccessFactors Employee Central Payroll

now


Business Capabilities and Value Aspiration



Business Area

Capability used




Available as of


Talent Management

Performance and Goals

Cloud Performance and Goals (SuccessFactors)

● SAP SuccessFactors Performance & Goals

now


Talent Management

Recruiting Cloud Recruiting Management (SuccessFactors)

● SAP SuccessFactors Recruiting

● SAP SuccessFactors Recruiting Posting

now


Time and Attendance Management

Shift Planning

Cloud Shift Planning (Kronos)

● SAP Time Management by Kronos

now



Time Sheet Recording and Management

Cloud Time Sheet (Kronos)

● SAP Time Management by Kronos

now


Travel and Expense Management

Travel Management

Cloud Travel Management with automated receipt recognition (Concur, Leonardo)

● Concur Expense

● Concur Travel

now

SAP ERP Operations Asset Planning and Design

Portfolio Management

On Premise Portfolio Management (S/4 OP)

● SAP S/4HANA

now

SAP ERP Operations Asset Planning and Design

Project Management

On Premise Project Management (S/4 OP)

● SAP S/4HANA

now

SAP ERP Purchasing Contract Management

Purchase Contract Management

On Premise Purchase Contract Management (S/4 OP, Leonardo)

● SAP S/4HANA

now

Your Business GuideBusiness Capabilities and Value Aspiration P U B L I C 11



Business Area

Capability used




Available as of

SAP ERP Purchasing Invoice Management

Invoice Processing

On Premise Invoice Processing (S/4 OP, Leonardo)

● SAP S/4HANA

now

SAP ERP Purchasing Procurement Commodity Procurement

On Premise Commodity Procurement (S/4 OP)

● SAP S/4HANA

now

SAP ERP Purchasing Procurement Purchase Order Processing

On Premise Purchase Order Processing (S/4 OP)

● SAP S/4HANA

now

SAP ERP Purchasing Sourcing Source Assignment

On Premise Source Assignment (S/4 OP)

● SAP S/4HANA

now

SAP ERP Purchasing Spend Analysis

Procurement Analytics

On Premise Real-Time Reporting and Monitoring (S/4 OP)

● SAP S/4HANA

now

SAP ERP Research and Development

Product Compliance

Product Marketability and Compliance

On Premise Product Marketability and Chemical Compliance (S/4 OP)

● SAP S/4HANA

now


Product Compliance

Safety Data Sheet and Label Management

On Premise Safety Data Sheet and Label Management (S/4 OP)

● SAP S/4HANA

now


Product Development and Configu-ration

Handover to Manufacturing

On Premise Handover to Manufacturing (S/4 OP)

● SAP S/4HANA

● SAP 3D Visual Enterprise Generator

now



Product Development

On Premise Integrated Product Development (S/4 OP)

● SAP S/4HANA

now



Product Development Foundation

On Premise Product Development Foundation (S/4 OP)

● SAP S/4HANA

now





Business Area

Capability used




Available as of


Product Portfolio and Project Management

Portfolio Management

On Premise Portfolio Management (S/4 OP)

● SAP S/4HANA

now



Project Management

On Premise Project Management (S/4 OP)

● SAP S/4HANA

now

SAP ERP Sales Quote, Order, and Contract Management

Available to Promise

On Premise Available to Promise (S/4 OP)

● SAP S/4HANA

now


Commodity Sales

On Premise Commodity Sales (S/4 OP)

● SAP S/4HANA

now


Distributor Management

On Premise Distributor Management (ERP)

● SAP ERP now


Sales Billing On Premise Sales Billing (S/4 OP)

● SAP S/4HANA

now


Sales Rebate Management

On Premise Sales Rebate Management (S/4 OP)

● SAP S/4HANA

now

SAP ERP Sales Sales Force Support

Direct Store Delivery

On Premise Direct Store Delivery (S/4 OP comp. scope)

● SAP S/4HANA

now

SAP ERP Supply Chain Business Planning

Material Requirements Planning

On Premise Material Requirements Planning (S/4 OP)

● SAP S/4HANA

now


Service Parts Planning

On Premise Extended Service Parts Planning (S/4 OP)

● SAP S/4HANA

2020 Q4


Service Parts Planning

On Premise Service Parts Planning (ERP, SCM)

● SAP ERP● SAP

Supply Chain Management

now

SAP ERP Supply Chain Logistics Delivery Management

On Premise Delivery Management (S/4 OP)

● SAP S/4HANA

now




Business Area

Capability used




Available as of

SAP ERP Supply Chain Logistics Goods Movement

On Premise Goods Movement (S/4 OP)

● SAP S/4HANA

now

SAP ERP Supply Chain Logistics Transportation Management

On Premise Advanced Transportation Management (S/4 OP)

● SAP S/4HANA

now

SAP Supply Chain Management

Operations Manufacturing Planning and Scheduling

Capacity Planning

On Premise Capacity Planning (S/4 OP)

● SAP S/4HANA

now


Sales Quote, Order, and Contract Management

Advanced Available to Promise

On Premise Advanced Available to Promise (S/4 OP)

● SAP S/4HANA

now


Supply Chain Business Planning

Capacity Planning

On Premise Capacity Planning (S/4 OP)

● SAP S/4HANA

now



Constraint Based Production Planning

On Premise Constraint Based Production Planning (S/4 OP)

● SAP S/4HANA

now



Demand Planning for Configurable Products

On Premise Demand Planning for Configurable Products

● SAP Supply Chain Management

now

2.2 Selected Capabilities Required in Addition

Transformation of your business: This table shows the capabilities that you have selected using the Add Capability feature to cover further business processes, grouped by business area (for capabilities selected via the catalog) and solutions (for capabilities indirectly selected via value map). The list also shows all recommended products and, if applicable, the validity date of the recommendation. The table is empty if you have not selected any additional capabilities.



Industry


Business Area Solution Capability




Available as of

Engineering, Construction and Operations

Purchasing

Supplier Management

Supplier Discovery

Cloud Supplier Discovery (Ariba)

● Ariba Network now


Purchasing

Supplier Management

Supplier Information Management

Cloud Supplier Information Management (Ariba)

● Ariba Sourcing, cloud edition

now


Purchasing

Supplier Management

Supplier Onboarding and Qualifica-tion

Cloud Supplier Onboarding and Qualifica-tion (Ariba)


now


Purchasing

Supplier Management

Supplier Performance Management

Cloud Supplier Performance Management (Ariba)


now

2.3 Capabilities of Recommended Products Compared to Current Products

This table shows the business capabilities that are currently available in your product line, and the additional business capabilities gained by the recommended products. The table also shows the related products.

The table is empty if the recommended products and current products cover the same business capabilities.

Line of Business/Technology Capability Area Capability

Gained Capability

Available in

current products only Products

Analytics Augmented Business Intelligence

Analytics Tool for Business and Key Users

X ● SAP S/4HANA

Application Development and Integration

Digital and User Experience

Enterprise Search X ● SAP S/4HANA



Gained Capability

Available in



Enterprise Extensions

Extensibility X ● SAP S/4HANA


Process Management

Responsibility Management

X ● SAP S/4HANA


Process Management

Situation Handling X ● SAP S/4HANA

Commerce Store Commerce Store Management with RFID

X ● SAP S/4HANA

Corporate Finance

Accounting and Financial Close

Joint Venture Accounting X ● SAP S/4HANA

Corporate Finance

Contract Management

Legal Content Management

X ● SAP S/4HANA

Corporate Finance

Enterprise Risk and Compliance

International Trade Management

X ● SAP S/4HANA

Corporate Finance

Financial Shared Services Management

Financial Shared Services Management

X ● SAP S/4HANA

Corporate Finance

Indirect Tax Management

Advanced Compliance Reporting

X ● SAP S/4HANA

Corporate Finance

Order to Cash Settlement Management X ● SAP S/4HANA

Corporate Finance

Procure to Pay Dynamic Discounting X ● Ariba Network

Corporate Finance

Procure to Pay Financial Supply Chain X ● SAP S/4HANA

Corporate Finance

Real Estate Management

Energy and Safety X ● SAP S/4HANA

Corporate Finance


Investment and Construction

X ● SAP S/4HANA

Corporate Finance


Leasing Accounting Compliance

X ● SAP S/4HANA

Corporate Finance


Portfolio and Location Management

X ● SAP S/4HANA

Corporate Finance


Space Management X ● SAP S/4HANA




Gained Capability

Available in


Corporate Finance

Treasury Management

Cash and Liquidity Management

X ● SAP S/4HANA

Corporate Finance

Treasury Management

Cash Management X ● SAP S/4HANA

Corporate Finance

Treasury Management

Debt and Investment Management

X ● SAP S/4HANA

Corporate Finance

Treasury Management

Financial Risk Management

X ● SAP S/4HANA

Database and Data Management

Data Governance Master Data Maintenance X ● SAP S/4HANA


Data Governance Master Data Management X ● SAP S/4HANA


Data Orchestration

Data Integration for S/4HANA

X ● SAP S/4HANA


Data Quality Data Quality for Master Data

X ● SAP S/4HANA

Human Resources and Administration

Talent Management

Candidate Relationship Management

X ● SAP SuccessFactors Recruiting


Talent Management

Global Job Distribution X ● SAP SuccessFactors Recruiting


Talent Management

Learning X ● SAP S/4HANA


Talent Management

Recruiting X ● SAP SuccessFactors Recruiting● SAP SuccessFactors Recruiting

Posting


Talent Management

Recruiting Marketing X ● SAP SuccessFactors Recruiting



Absence Management X ● SAP S/4HANA● SAP SuccessFactors Employee

Central● SAP Time Management by Kro

nos



Gained Capability

Available in




Time Sheet Recording and Management

X ● SAP S/4HANA● SAP SuccessFactors Employee

Central● SAP Time Management by Kro

nos



Employee Travel Safety X ● Concur Travel



Expense Management X ● Concur Expense



Expense Report Auditing X ● Concur Expense



Expense Spend Visibility X ● Concur Expense



Travel Policy Compliance X ● Concur Travel



Travel Spend Visibility X ● Concur Travel

IT Management Application Lifecycle Management

System Administration X ● SAP S/4HANA

IT Management IT Infrastructure Management

Output Management X ● SAP S/4HANA

Operations Asset Information and Change Management

Management of Change X ● SAP S/4HANA

Operations Asset Planning and Design

Portfolio Management X ● SAP S/4HANA

Operations Environment, Health, and Safety

EHS Incident Management X ● SAP S/4HANA


Environment Management X ● SAP S/4HANA




Gained Capability

Available in



Health and Safety Management

X ● SAP S/4HANA

Operations Industrial Insights

Plant Level Operations for Discrete Industries

X ● SAP S/4HANA

Operations Manufacturing Execution

Extended Production Operations

X ● SAP S/4HANA


Lean Manufacturing X ● SAP S/4HANA


Manufacturing Engineering

X ● SAP S/4HANA


Manufacturing Execution for Engineer to Order

X ● SAP S/4HANA

Operations Manufacturing Planning and Scheduling

Manufacturing Collaboration

X ● SAP S/4HANA

Purchasing Contract Management

Contract Authoring, Execution, and Repository

X ● Ariba Sourcing, cloud edition

Purchasing Invoice Management

Contract Invoicing X ● Ariba Network


Invoice Collaboration X ● Ariba Network● SAP S/4HANA


Service Entry Sheets X ● Ariba Network


Service Invoicing X ● Ariba Network

Purchasing Procurement Category Management, Projects, Workflow


Purchasing Procurement Central Purchase Contract Processing

X ● SAP S/4HANA

Purchasing Procurement Central Purchasing X ● SAP S/4HANA

Purchasing Procurement Central Purchasing Analytics

X ● SAP S/4HANA

Purchasing Procurement Central Requisitioning X ● SAP S/4HANA

Purchasing Procurement Central Sourcing X ● SAP S/4HANA

Purchasing Procurement Payment Execution X ● Ariba Network



Gained Capability

Available in


Purchasing Procurement Purchase Order Collaboration

X ● Ariba Network● SAP S/4HANA

Purchasing Procurement Self-Service Requisitioning X ● SAP S/4HANA

Purchasing Procurement Supply Chain Finance X ● Ariba Network

Purchasing Services Procurement

Services Contract Management


Purchasing Services Procurement

Services Sourcing X ● Ariba Sourcing, cloud edition

Purchasing Sourcing BOM, Workflow, and Syndication


Purchasing Sourcing Sourcing X ● Ariba Sourcing, cloud edition

Purchasing Sourcing Spend Classification and Enrichment


Purchasing Sourcing Spot Quotes X ● Ariba Sourcing, cloud edition

Purchasing Supplier Management

Classification and Segmentation

X ● Ariba Sourcing, cloud edition● SAP S/4HANA


Supplier Discovery X ● Ariba Network


Supplier Evaluation X ● Ariba Sourcing, cloud edition● SAP S/4HANA





Supplier Onboarding and Qualification






Third-Party Risk and Data Augmentation


Research and Development

Product Compliance

Dangerous Goods Management

X ● SAP S/4HANA


Product Compliance

Product Marketability and Compliance

X ● SAP S/4HANA


Product Compliance

Safety Data Sheet and Label Management

X ● SAP S/4HANA




Gained Capability

Available in



Product Development and Config-uration

Authoring Tool Integration X ● SAP S/4HANA



Product Development X ● SAP S/4HANA



Visualization Generation and Integration

X ● SAP 3D Visual Enterprise Generator



Commercial Project Management

X ● SAP S/4HANA



Project Management X ● SAP S/4HANA



Project Resource Management

X ● SAP S/4HANA

Sales Billing and Revenue Innovation Management

Financial Customer Care and Dispute Management

X ● SAP S/4HANA


Solution Billing X ● SAP S/4HANA


Subscription Order Management

X ● SAP S/4HANA


Price Management X ● SAP S/4HANA


Sales Order Management and Processing

X ● SAP S/4HANA


Sales Quotation Management

X ● SAP S/4HANA

Sales Sales Force Support

Account and Contact Management

X ● SAP S/4HANA


Activity Management and Visit Planning

X ● SAP S/4HANA



Gained Capability

Available in



Opportunity and Pipeline Management

X ● SAP S/4HANA

Sales Sales Lead Management

Sales Lead Management X ● SAP S/4HANA

Sales Sales Planning and Performance Management

Sales Planning and Monitoring

X ● SAP S/4HANA

Service Customer Service and Support

Business Solution Portfolio X ● SAP S/4HANA


Contract and Engagement Setup

X ● SAP S/4HANA


Packaged Service Offer-ings

X ● SAP S/4HANA


Service Monitoring and Analytics

X ● SAP S/4HANA


Solution Order Management

X ● SAP S/4HANA

Service Omnichannel Service Engagement

Customer Engagement X ● SAP S/4HANA


Collaborative Supply Network

X ● Ariba Network


Demand-Driven Replenishment

X ● SAP S/4HANA

Supply Chain Logistics Dock Appointment Scheduling

X ● SAP S/4HANA

Supply Chain Logistics Explosives Warehouse Management

X ● SAP S/4HANA

Supply Chain Logistics Extended Warehouse Management

X ● SAP S/4HANA

Supply Chain Logistics Physical Inventory X ● SAP S/4HANA

Supply Chain Logistics Returnable Packaging Logistics

X ● SAP S/4HANA

2.4 Value Driver Priority Selection and Aspiration

This table shows the value drivers you have selected including the aspiration range and your aspiration.



The table is empty if you have not yet prioritized the value drivers. All value drivers are listed in the appendix.

Line of Business/Technology Value DriverAspiration Range Your Aspiration

Commerce Increase sales force efficiency 27.0 - 125.0 76.0

Commerce Reduce customer churn 18.0 - 81.0 50.0

Commerce Reduce days sales outstanding (one - time benefit) 24.0 - 48.0 24.0

Corporate Finance Reduce days sales outstanding (one - time benefit) 24.0 - 48.0 24.0

Corporate Finance Reduce procurement function costs 27.0 - 100.0 64.0

Database and Data Management Reduce procurement function costs 27.0 - 100.0 64.0

Operations Improve on-time delivery performance 1.0 - 16.0 16.0

Operations Reduce customer churn 18.0 - 81.0 50.0

Operations Reduce order fulfillment lead time 14.0 - 79.0 47.0

Operations Reduce procurement function costs 27.0 - 100.0 64.0

Operations Reduce revenue loss due to stock-outs 36.0 - 98.0 67.0

Operations Reduce sales and operations planning cost 25.0 - 50.0 50.0

Purchasing Reduce procurement function costs 27.0 - 100.0 64.0

Research and Development Improve on-time delivery performance 1.0 - 16.0 16.0

Research and Development Increase sales force efficiency 27.0 - 125.0 76.0

Research and Development Reduce order management cost 8.0 - 23.0 23.0

Sales Improve on-time delivery performance 1.0 - 16.0 16.0

Sales Increase sales force efficiency 27.0 - 125.0 76.0

Sales Reduce customer churn 18.0 - 81.0 50.0

Sales Reduce days sales outstanding (one - time benefit) 24.0 - 48.0 24.0

Sales Reduce order management cost 8.0 - 23.0 23.0

Sales Reduce revenue loss due to stock-outs 36.0 - 98.0 67.0

Sales Reduce sales and operations planning cost 25.0 - 50.0 50.0

Service Reduce days sales outstanding (one - time benefit) 24.0 - 48.0 24.0

Supply Chain Improve on-time delivery performance 1.0 - 16.0 16.0

Supply Chain Reduce order fulfillment lead time 14.0 - 79.0 47.0

Supply Chain Reduce procurement function costs 27.0 - 100.0 64.0

Supply Chain Reduce revenue loss due to stock-outs 36.0 - 98.0 67.0

Supply Chain Reduce sales and operations planning cost 25.0 - 50.0 50.0


2.5 Value Realization Tracking

SAP Solution Manager Business Process Analytics helps realizing the potential of the value drivers by linking value drivers to operational KPIs measured in the SAP systems.

The following table shows the Business Process Analytics KPIs for your selected value drivers by line of business or by line of technology. In addition, the table also displays the number of solution capabilities and number of recommended products contributing to the value driver.

The table is empty if you have not yet prioritized the value drivers. All value drivers are listed in the appendix.

Line of Business/Technology Value Driver

Number of Solution Capabili

ties

Number of rec

ommended

Products Business Process Analytics KPIs

Sales Improve on-time delivery performance

3 2 ● Exceptions during delivery due processing (sales)

● Missing fields in incomplete sales document items

● Open and rescheduled sales schedule line items

● Outbound deliveries overdue for GI● Overdue sales schedule line items● ...

Supply Chain Improve on-time delivery performance






Improve on-time delivery performance









ties

Number of rec

ommended


Operations Improve on-time delivery performance





Purchasing Reduce procurement function costs

28 4 ● Automation rate: Purchase Orders● Automation rate: Purchase Requisitions● Automation rate: Purchase order items● Changes in purchase orders● Changes in purchase requisitions● ...


Reduce procurement function costs


Operations Reduce procurement function costs


Supply Chain Reduce procurement function costs


Corporate Finance Reduce procurement function costs





ties

Number of rec

ommended


Sales Increase sales force effi-ciency

14 2 ● Delivery items overdue for billing● Exceptions during delivery due processing

(sales)● Missing fields in incomplete sales document

items● Open and rescheduled sales schedule line

items● Outbound deliveries overdue for GI● ...


Increase sales force effi-ciency





Commerce Increase sales force effi-ciency





Service Reduce days sales outstanding (one - time benefit)

5 2 ● Billing plan dates not billed● Cancelling sales invoices● Deliveries overdue for billing● Delivery items overdue for billing● Distinct exceptions during billing due proc

essing● ...

Sales Reduce days sales outstanding (one - time benefit)


essing● ...





ties

Number of rec

ommended


Commerce Reduce days sales outstanding (one - time benefit)


essing● ...

Corporate Finance Reduce days sales outstanding (one - time benefit)


essing● ...

Sales Reduce customer churn 11 2 ● Overdue open items FI-AR (customer items)● Return order items created● Return orders created● Sales order items rejected / cancelled● Sales orders with rejected/cancelled items

Commerce Reduce customer churn 5 2 ● Overdue open items FI-AR (customer items)● Return order items created● Return orders created● Sales order items rejected / cancelled● Sales orders with rejected/cancelled items

Operations Reduce customer churn 2 2 ● Overdue open items FI-AR (customer items)● Return order items created● Return orders created● Sales order items rejected / cancelled● Sales orders with rejected/cancelled items

Supply Chain Reduce revenue loss due to stock-outs

7 3 ● Insufficient stock during delivery creation (STO)


● Overdue Purchase Order Commitment Items● Overdue Purchase Requisition Commitment

Items● Planned orders (LA/KD) with finish basic

date in the past● ...




ties

Number of rec

ommended


Sales Reduce revenue loss due to stock-outs






Operations Reduce revenue loss due to stock-outs







Reduce order management cost

3 2 ● Automation rate: Sales Orders● Billing plan dates not billed● Changes in sales documents● Distinct exceptions during billing due proc

essing● Distinct exceptions during delivery due proc

essing (sales)● ...

Sales Reduce order management cost








ties

Number of rec

ommended


Operations Reduce sales and operations planning cost

2 2 ● Old Planned Independent Requirements with MRP list


Items● Overdue purchase order schedule lines with

MRP list● Overdue purchase requisition items with MRP

List● ...

Sales Reduce sales and operations planning cost





List● ...

Supply Chain Reduce sales and operations planning cost





List● ...

Supply Chain Reduce order fulfillment lead time







ties

Number of rec

ommended


Operations Reduce order fulfillment lead time






3 Business Case, Realization Tracking, and Change Management

Given the summary and scope of the SAP Transformation Navigator session in the previous chapters, chapter 3 is intended to outline a helpful way forward.

The topics of chapter 3 are selected based on our experience of a very high number of customer planning discussions and are synchronized between the Business Guide, Technical Guide and Transformation Guide. For a complete overview, please refer to the chapter Proposal for The Next Steps – Leverage Complementing Tools and Services in the Transformation Guide.

While we want to give you clear guidance for the overall journey, it is up to you to choose the topics and level of engagement that meet your needs. For all topics we have structured the available tools and services along the following levels:

● Level 0: Self-service● Level 1: Outside-in expert guidance● Level 2: Joint planning● Level 3: Joint execution

3.1 Build Your Transformation Case

Value Guided Business Case with SAP VLM [page 31]

Effort Consistent Framework for Transformation Project using SAP TCO Model Elements [page 32]

3.1.1 Guided Business Case with SAP VLM

Articulating the value of a technology investment is top of mind for customers.

Guided Business Case is the next generation tool on SAP Value Lifecycle Management (VLM) to address this topic. This new functionality is designed to help you create a business case in an intuitive and simple manner with access to SAP capabilities, products, value/ benefits, cost calculations, and project economics with just a few clicks!

● Provides clear guidance on the Value of Intelligent Enterprise● Option to build business case by Process or by SAP Product● Ability to create a business case from scratch (low touch) or from a benchmarking assessment (high

touch)

Your Business GuideBusiness Case, Realization Tracking, and Change Management P U B L I C 31

http://valuemanagement.sap.com/

● Covers all major Line of Business, Industries (incl. segments) and SAP products● Real-time, flexible output that can be customized

Starting Q3/20020, the SAP Transformation Navigator will link to the Guided Business Case self-service tool in VLM and submit the related information so that you can easily start your business case creation in VLM

The Next Generation Benchmarking in SAP VLM helps you understand and benchmark process maturity using peer comparisons: a unique and differentiated approach to measure, monitor, and optimize performance and to enable the Intelligent Enterprise.

● Identify key areas of process improvement opportunity● Measure KPI and best practices maturity to uncover gaps● Comparison between divisions and/or regions● Comparison of current performance to past performance: establish baseline to prove success● Coverage: 45+ survey assessments, 630+ KPIs, 640+ Best Practices – covering all cross-industry business

processes and 5 industries● Online scorecard in real-time showcasing digital process maturity, KPI analysis, prioritization of best

practices and comparison to peers

3.1.2 Consistent Framework for Transformation Project using SAP TCO Model Elements

● The SAP Total Cost of Ownership (TCO) model covers all cost components across the solution lifecycle.● Customer references and improvement ranges are available per cost component.● To align IT and business, SAP shows how these business capabilities are covered by SAP solutions.







● Project and Ongoing Operation Effort Estimate compares the as-is cost situation to the SAP S/4HANA transition over a 5-year timeframe.

● Solution enablers and accelerators help reducing the TCO.

Concept In this comprehensive TCO model, hardware and software investment cost, implementation cost, and ongoing cost (including continuous improvement projects) are covered.

Within four different levels, customers can now experience the offerings for cost estimates which are consistently linked to this TCO model. Due to the implementation of SAP S/4HANA, the ratio between different cost components will change. Additionally, SAP is offering several accelerators to decrease the total cost.

Self-Service Offering

In the first step, the customer uses SAP Transformation Navigator to get a first overview about potential benefits and the transformation accelerators. Examples from other customer who already moved to SAP S/4HANA are available, and the SAP S/4HANA TCO Explorer shows potential ranges of cost reductions based on TCO elements over a five-year period.

Outside-In Guidance

In the next step, an SAP expert will adjust parameters and accelerators of the SAP S/4HANA TCO Explorer together with the customer. In addition, a potential to shift focus of IT from operations to new topics will be evaluated. All results will then feed into a joint planning and calculation of the transformation efforts.

Joint Planning Offering

The joint planning is done by the customer and the SAP expert. All defined TCO cost elements are quantified. Based on company-specific cost rates, a detailed cost planning will be created and the common realization will be started. If the customer also performed a Readiness Check or used other SAP services, their results can be integrated.

Joint Execution Offering

The tracking of the prior defined TCO elements is one of the key elements of the final level of collaboration. Deviations will be identified and adjustments will be made. This leads to an optimization of the individual customer TCO cost elements over time.



3.2 Value Realization

● Proven improvement methodology based on Six Sigma● Understand the impact of low-level key figures on strategic KPIs● Visualize cause and effect in dependency diagrams● Integrated in SAP Solution Manager● SAP services available to get started

Concept When moving to SAP S/4HANA, there are several different challenges that are essential for a solid foundation for the new system.

1. To avoid unnecessary memory costs and to speed up the technical migration, you need to identify old and open business documents that need to be closed before they can be archived.

2. To gain the full potential of the important SAP S/4HANA topics like Fast Close and MRP planning, it is also important to clean up respective old and open business documents first.

3. If you want to also harmonize and standardize your business processes and reduce complexity, then master data and document types should be identified that are used, no longer used, or not used at all. The later should also not be brought over to the new system.

4. To ensure that you are well prepared for scenarios like lot size of 1 or customer segment of 1, the classical back office processes like sales, purchasing and manufacturing should run highly automated. If that is not yet the case, one should check how the degree of automation can be increased.

5. A lot of inefficiencies or ineffectiveness related to business KPIs like DSO, DPO, DII are related to inaccurate master data, non-optimal configuration, business process design, or end-user behavior. If not tackled accordingly, those problems will also persist in a new SAP S/4HANA environment as this is nothing that can be technically resolved, but requires manual and organizational involvement.

All those topics are addressed as part of the business process improvement service of SAP.


SAP Transformation Navigator provides a mapping of selected business process analytics KPIs to value drivers of interest. The respective business process analytics KPIs help to operationalize the improvement of the corresponding value driver.

Outside-In Guidance

During the Business Process Improvement Opportunity Check, 30 out-of-the-box key figures are executed remotely and results are prepared in a short report to provide a rough scoping for potential future business process improvement activities. The report provides an as-is analysis on:

● Working capital KPIs like DSO, DPO, and DII




● Degree of automatic document creation● Clean-up potential for old and open business documents● Usage of custom and configured document types


During the Plan & Build phase of the business process improvement service, one takes the results of the Business Process Improvement Opportunity Check and creates a more detailed plan for potential future business process improvement activities. A first set of best practice key figures is activated for business process analytics in SAP Solution Manager. On top if this, some sample configuration for management reporting and progress tracking is performed in SAP Solution Manager.


During the Run phase of the business process improvement service, old and open business documents are highlighted that should be closed, and recommendations are given with which mass activities such documents can be cleared. Unused and obsolete master data and document types as well as possible negative influencing factors on business drivers or value drivers can be identified. One can also provide some deeper analysis on how process automation can be increased and manual re-processing needs can be avoided due to error reduction.

3.3 Align IT and Business - Especially Regarding Functional Coverage

● The over-arching needs of an organization to perform their core functions are illustrated as business capabilities.

● Business capabilities describe what a business does.● To align IT and business, SAP shows how these business capabilities are covered by SAP solutions.● Business capabilities are used to describe the scope of SAP products from a business point of view.● To issue the correct product recommendation, business capabilities are considered to identify the current

SAP solution that covers them.

Concept The essential question of an organization deciding for an IT solution is "Does the solution support my business and can it cover my needs to perform my core functions?". To answer that question, SAP has defined business capability models for each industry, illustrating the over-arching needs of an organization, describing what the business does.


These business capabilities are mapped to solutions that SAP provide to support these business needs. Like that, the organization can easily drive the decision process based on the business needs without having to worry about the technical details of an IT solution. However, the IT solutions required are derived from the selected business capabilities.

This methodology supports both the transformation from a current SAP product landscape as well as the expansion with the goal to cover additional business capabilities. To issue the correct product recommendation based on the existing SAP product landscape, business capabilities are considered to identify the current SAP solution that covers them.

At the same time, SAP uses business capabilities to describe the scope of SAP products from a business point of view. Potential value drivers are also identified based on the business capabilities.


SAP Transformation Navigator provides the opportunity to browse through the business capability model of a respective industry, and shows the solutions that fulfill the required needs. Based on the needs of the organization, business capabilities can be selected and the SAP solution plus the underlying product are added to the product map in SAP Transformation Navigator.

Outside-In Guidance

With the SAP S/4HANA Discovery Workshop, companies assess the relevant scope of SAP S/4HANA and the readiness to adopt it. Using a value-based approach, an on-site workshop provides guidance about the benefits and transformation paths of adopting SAP S/4HANA. The discovery workshop includes an introduction to SAP S/4HANA per line of business, identifies benefits related to SAP S/4HANA based on value drivers, presents potential transition scenarios, and provides an outlook on typical implementation approaches.


The Value & Implementation Strategy service brings the results of the SAP S/4HANA Discovery Workshop to the next level of detail. Starting from the business priorities and the value chain built on SAP S/4HANA, customers will receive suitable business scenarios, a target architecture, a validated high-level program plan, an implementation strategy, and a benefit/complexity evaluation.


The SAP Model Company kickstarts your digital transformation. SAP Model Companies are prepackaged solutions tailored to industry or line of business and offer end-to-end, ready-to-use reference functionality delivered as a service. They include all applications, settings, configurations, and sample data necessary to start a digital transformation project immediately.

3.4 Digital Innovations

● Gain innovation insights and get the opportunity to shape new innovation ideas with SAP Leonardo Services

● Design new innovative solutions enriching your S/4HANA implementation roadmap to maximize S/4HANA benefit using SAP Leonardo Services

● Discover SAP’s collaboration offerings and participate in shaping new and existing solutions relevant for your S/4HANA transformation roadmap




Concept A central task for every S/4HANA implementation is to assess the business value for the organization’s processes and business models. Therefore, it is essential for customers to discover and scope the innovations and new possibilities that SAP S/4HANA provides to maximize the value it can generate for their organizations. However, the discovery of the innovation potential of SAP S/4HANA is not only important for unlocking the business value, but is also key to gaining and sustaining competitive advantage.

But not only the assessment of what SAP S/4HANA already delivers is necessary, a closer look on what is there to come is also important to get a complete view on the value and competitive advantage of SAP S/4HANA. Questions about, for example, the plans of SAP, future innovations on the roadmap, and ways to influence or shape new solutions need to be investigated.

Only knowing the answers will give customers a complete picture of the potential business value, and the disruptive character of SAP S/4HANA will unfold. These answers will also be the foundation to foresee the impact of planned and upcoming innovations on the customers' transformation roadmaps.

This step addresses services and tasks that will assist customers discovering S/4HANA roadmap innovations, solution plans and ideas beyond. The step will help identifying valuable future applications, capabilities and their derived impact on the transformation roadmap. But not only will this step cover the discovery of existing plans and roadmaps, it will furthermore allow customers to actively engage.

SAP offers various programs to join customer engagement initiatives having various parties with different points of view, diverse skill sets and competencies to jointly build and shape innovative solutions. But moreover, this step also includes the opportunity for individual


customers to team up with SAP experts to innovate tailored solutions with SAP Leonardo Innovation Services to produce market-ready solutions fitting the customers' own roadmap. Engineering excellence meets entrepreneurial spirit.


SAP Transformation Navigator, the SAP Customer Influence portal, and the SAP Innovation Discovery platform simplify the search for new and planned functionality and features. They allow to evaluate and discuss innovations with having both business and technical information at a glance. The combination of the self-service tools provides customers with the opportunity to do a first research and discovery of the existing and planned innovations of SAP S/4HANA, and will assist to tailor them to the customers' needs and capabilities.

Outside-In Guidance

With the SAP S/4HANA Discovery Workshop including the Industry Golden Document & proposed Digital Priorities, companies can assess the scope of SAP S/4HANA. The workshop will guide them through the capabilities of SAP S/4HANA, and will derive the impact on value drivers as well as the customer implementation roadmap. This service can also serve as a foundation to scope influence innitiatives and to start innovation workshops with SAP Leonardo services if customers discover missing areas in their transformation roadmap.


The Value & Implementation Strategy service provides the possibility to derive innovations and solutions that can enrich and match customers' S/4HANA transformation roadmaps. Starting from business priorities, target architecture, implementation strategies, and a benefit-complexity evaluation, this service lays the foundation to identify existing or planned innovations. Moreover, using the SAP Leonardo Service, customers receive assistance with ideating and building new innovative solutions tailored to the customer needs and fitting their transformation roadmap.


Customers collaboration and co-innovation initiatives are accompanied by a standardized, strong and best-practice innovation methodology. If customers decide to join a Customer Engagement Initiative or a Customer Roundtable, or if customers build new solutions using the SAP Leonardo services, a reliable and proven innovation project methodology will complement the process.



Legal Disclaimer



Your Business GuideLegal Disclaimer P U B L I C 39








THE BEST RUN








Your Technical GuideSAP Transformation Navigator

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Content

About this document. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1 Digital Framework and Reference Landscape Outlook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.1 The Roadmap to the Intelligent Enterprise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41.2 Reference Product Map: Cement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61.3 SAP Road Map Explorer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71.4 Cloud Integration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2 Guidance on Currently Used Applications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92.1 Guidance per Current Product. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92.2 Industry Reference Product Map Coverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102.3 Integration and Transition Guides. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

3 Advanced System and Landscape Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143.1 Scoping the Digital Core. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143.2 Advanced System Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163.3 Country and Language Coverage / Global Solutions Without Boundaries. . . . . . . . . . . . . . . . . . . . . 183.4 Consistent Framework for Transformation Project using SAP TCO Model Elements. . . . . . . . . . . . . .203.5 SAP HANA Enterprise Cloud: Your Accelerated Path to SAP S/4HANA Cloud. . . . . . . . . . . . . . . . . . 21

2 P U B L I CYour Technical Guide

Content

About this document

● The Technical Guide aims to help customers move from seeing the need for digital transformation to starting the journey.

● It summarizes the output of the SAP Transformation Navigator self-service tool regarding the technical perspective. A business guide and a transformation guide are also available to comprehensively address all stakeholder needs.

● In the Technical Guide, we cover the digital framework and reference landscape outlook, summarize your go-to guidance on currently used applications, and list advanced system and landscape analysis options.

In this digital economy, it’s winner takes all, and early movers are typically the winners. But, there’s a big difference between understanding the need to move, and knowing where to go – with the SAP Transformation Navigator we offer a comprehensive self-service tool to start the journey.

This technical guide summarizes all information and decisions you have made in the SAP Transformation Navigator self-service tool, but enriches them with relevant overall SAP information, and provides an overview of the follow-up work that we have seen useful in many customer cases.

The storyline starts from a strategic perspective, summarizes the need for action, and outlines the necessary follow-up work.

The Digital framework and reference landscape outlook

Starting from SAP’S digital framework, a reference landscape for your industry helps build the story for your company. The product roadmap availability should also support planning your journey.

Go-To Guidance on currently used applications

Based on the selected product map and the IT-strategy decisions, you're given an overview of the go-to recommendations. You'll also see a comparison to the reference landscape for your industry and a list of the associated integration information.

Advanced system and landscape analysis options

Moving to execution will require many in-depth analysis, many of which are supported by SAP tools. Examples include the custom code analysis, sizing, Fiori recommendations, and opportunities for multi-instance consolidation.


Your Technical GuideAbout this document P U B L I C 3

1 Digital Framework and Reference Landscape Outlook

In this section:

The Roadmap to the Intelligent Enterprise [page 4]

Reference Product Map: Cement [page 6]

SAP Road Map Explorer [page 7]

Cloud Integration [page 7]

1.1 The Roadmap to the Intelligent Enterprise

SAP is committed to supporting every customer to become a best-run business and a leader in their industry. Working with our customers, we transform industries, grow economies, lift up societies, and sustain our environment. We believe that the best-run businesses make the world run better – and the best run SAP.

We believe that best-run businesses are intelligent enterprises – breaking down silos and adopting intelligent, dynamic, cross-functional business processes to deliver optimal experiences.

Our Intelligent Enterprise Framework provides three essential components to help you achieve these goals:

Experience (X-Data): Experience management to holistically measure and track stakeholder experiences across all touchpoints, prioritize and predict stakeholder needs and trends with key experience drivers, drive action, and facilitate optimization by tracking progress and experience improvement.


Digital Framework and Reference Landscape Outlook

Intelligence:

A business technology platform which provides unified data management to connect, discover, orchestrate, and manage both internal and external data, intelligent technologies and analytics to improve analytical and transactional workloads, and application services to simplify extension and integration across the intelligent suite.

Operations (O-Data):

An intelligent suite of applications to automate day-to-day business processes, share insights across functions, and better interact with customers, suppliers, employees, and partners through applications embedded with intelligence.

Learn more about the Intelligent Enterprise Framework at sap.com/intelligententerprise.

Start Your Transformation

Every industry has its own dynamics and standards for best practices, and every company is at a different starting point with its own set of business priorities. With so many variables, there are numerous ways to become an intelligent enterprise. Your path depends on your industry, your business objectives, your digital strategy, and your stage in the transformation journey. You have the freedom to choose where to begin, and which path to follow to become an intelligent enterprise.

SAP provides clear, guided pathways with a variety of solutions aligned to your strategic priorities. Read the corresponding sections of the white paper: “The Journey to the Intelligent Enterprise” to learn how SAP products and solutions can help you transform the areas of your business.

In the SAP Transformation Navigator you can not only explore SAP’s complete portfolio for your industry but also the clear guided pathways and recommendations:

● get specific recommendations based on the products you are currently using, incl. transition- and integration information when available

Your Technical GuideDigital Framework and Reference Landscape Outlook P U B L I C 5

http://www.sap.com/intelligententerprise

https://www.sap.com/documents/2020/03/e258345b-8a7d-0010-87a3-c30de2ffd8ff.html


● browse and add further capabilities and solutions to get related product recommendations that cover your additional business needs

● or explore SAP’s comprehensive product and solution portfolio and build your landscape of recommended products and solutions from scratch

1.2 Reference Product Map: Cement

● The industry reference product map shows the most important products for the Cement industry in the context of the SAP Intelligent Enterprise.

● Products are selected based on our experience and thought leadership and are not based on your current SAP footprint.

● Not all products can be licensed separately and some are shown as clusters of individual products.● For a complete overview and a comparison of your recommended products versus the industry reference

products, please see Industry Reference Product Map Coverage [page 10].



1.3 SAP Road Map Explorer

SAP road maps support the journey to SAP’s future product portfolio and the Intelligent Enterprise.

The SAP Road Map Explorer provides you with:

● The latest road map content, by product, process and industry.● Detailed updates on product information.● Possibilities to explore, filter, and customize your own road map.

Discover the new experience at roadmaps.sap.com.

Extensive customer research gave us insights on customer needs and the explorer was developed on this basis – to deliver extensive and detailed product road map information. The new user interface makes it easy to search products, industries, and processes, making road maps now easier to consume.

The explorer offers a Google-like search for all road maps, and three entry points to search them – the search bar, the quick access toolbar, and the header filter. The innovations are displayed in a Kanban board style, allowing further searches to refine the results, including various time horizons in the future and the past. Each innovation “box” displays very detailed information about the innovation or feature.

You can also personalize the content – under My Road Maps Saved Road Maps to create innovation sets or favorite road maps – and share it via the Share icon. A feedback button is included on the landing page, allowing the collection of anonymous and non-anonymous feedback.

A download option to Excel is available and will be further improved.

See the promotion video and check out roadmaps.sap.com for further information.

See an overview of all SAP road maps.

1.4 Cloud Integration

Your Technical GuideDigital Framework and Reference Landscape Outlook P U B L I C 7

https://roadmaps.sap.com/index.html

https://video.sap.com/media/t/0_6p9a04dy

https://roadmaps.sap.com/index.html

https://www.sap.com/products/roadmaps.html

Cloud solutions make up a significant portion of SAP’s portfolio and SAP is committed to continually broaden and extend integration capabilities of those cloud solutions.

● SAP’s cloud Line of Business (LoB) solutions – e.g. AP Success Factors, SAP Ariba, SAP Concur, SAP Fieldglass, SAP C/4 – offer seamless end-to-end integration capabilities to SAP S/4HANA and SAP ERP.

● LoB solutions support common integration qualities to harmonize the integration experience across solutions.

● SAP’s process integration strategy for cloud and hybrid scenarios is based on public APIs and SAP Cloud Platform Integration as the strategic integration middleware.

For more information see the overview of the SAP Cloud Platform Integration Suite and various Customer COE and CIO Guides on integration topics.

Discover and consume digital content packages with APIs, pre-packaged integrations, and sample apps from SAP and select partners on the SAP API Business Hub.



https://www.sap.com/products/cloud-platform/capabilities/integration.html

https://support.sap.com/en/offerings-programs/ccoe/cio-customer-coe-guides.html

https://support.sap.com/en/offerings-programs/ccoe/cio-customer-coe-guides.html

https://cloudintegration.hana.ondemand.com/

2 Guidance on Currently Used Applications

2.1 Guidance per Current Product

This table shows a summary of all recommendations for your currently used products. If your product map does not contain any current products, the table is empty. The table also shows future changes in recommendations, if applicable, as new products or product features become available. For details on any listed transformations see Integration and Transition Guides [page 12].

Current product RationaleDeployment Preference Recommended Product

Transition Type

Available as of

SAP ERP Selection of capability, see Business Guide 2.1

see Business Guide 2.1

SAP SuccessFactors Employee Central

Process Transformation

now

SAP ERP Stay-on n/a SAP ERP Context-specific

now



SAP S/4HANA Conversion now



SAP Time Management by Kronos

Context-specific

now




Context-specific

now



Concur Expense Process Transformation

now

Your Technical GuideGuidance on Currently Used Applications P U B L I C 9

Current product RationaleDeployment Preference Recommended Product

Transition Type

Available as of



Concur Travel Process Transformation

now



SAP SuccessFactors Employee Central Payroll

Context-specific

now



SAP SuccessFactors Performance & Goals


now



SAP 3D Visual Enterprise Generator

Context-specific

now



SAP SuccessFactors Recruiting


now



SAP SuccessFactors Recruiting Posting


now


Selection of capability, see Business Guide 2.1


SAP S/4HANA Process Transformation

now


Stay-on n/a SAP Supply Chain Management

Automatic now

2.2 Industry Reference Product Map Coverage

This table indicates which products of the Industry Reference Product Map are currently part of your recommended products. .

For details of the Industry Reference Product Map see Reference Product Map: Cement [page 6] .


Guidance on Currently Used Applications

Product of Industry reference product map Part of your product map

Ariba Network X

Ariba Sourcing, cloud edition X

Concur Expense X

Concur Invoice -

Concur Travel X

SAP 3D Visual Enterprise Author -

SAP 3D Visual Enterprise Viewer -

SAP Access Control for SAP S/4HANA -

SAP Agile Data Preparation, on-premise edition -

SAP Analytics Cloud -

SAP Ariba Procurement, cloud edition -

SAP Asset Intelligence Network -

SAP Business One -

SAP Business One Cloud -

SAP Business Planning and Consolidation, version for SAP BW/4HANA -

SAP BusinessObjects Business Intelligence platform -

SAP BW/4HANA -

SAP Cloud for Customer add-ins -

SAP Cloud Platform Big Data Services -

SAP Cloud Platform Portal -

SAP Commerce Cloud -

SAP Customer Data Cloud -

SAP Data Intelligence -

SAP Data Services -

SAP Document Center, cloud edition -

SAP Engineering Control Center for SAP S/4HANA -

SAP Enterprise Threat Detection -

SAP Extended Warehouse Management -

SAP Fieldglass Vendor Management System -

SAP Fiori Cloud -

SAP Gateway -

SAP Global Batch Traceability -

SAP Global Trade Services -

SAP HANA smart data integration -


Product of Industry reference product map Part of your product map

SAP HANA, platform edition -

SAP Identity Management -

SAP Information Steward -

SAP Innovation Management -

SAP Integrated Business Planning for Supply Chain -

SAP Jam Collaboration -

SAP Management of Change -

SAP Manufacturing Execution -

SAP Manufacturing Integration and Intelligence -

SAP Master Data Governance -

SAP Multiresource Scheduling -

SAP Predictive Maintenance and Service, cloud edition -

SAP Predictive Maintenance and Service, on-premise edition -

SAP Product Lifecycle Costing -

SAP Revenue Accounting and Reporting -

SAP S/4HANA X

SAP S/4HANA Cloud -

SAP Single Sign-On -

SAP Solution Manager -

SAP Solution Sales Configuration, on-premise edition -

SAP SuccessFactors Employee Central X

SAP SuccessFactors Employee Central Payroll X

SAP SuccessFactors Learning -

SAP SuccessFactors Onboarding -

SAP SuccessFactors Recruiting X

SAP SuccessFactors Workforce Analytics -

SAP Transportation Management -

SAP Yard Logistics -

2.3 Integration and Transition Guides

This table provides links to the integration and transition guides for the products recommended to you.


Guidance on Currently Used Applications

Current product Recommended Product Guide

SAP ERP SAP S/4HANA Making the Case for S/4HANA: SAP Business Scenario Recommendations

SAP ERP SAP S/4HANA Mapping Your Journey to SAP S/4HANA - A Practical Guide for Senior IT Leadership

SAP ERP SAP S/4HANA SAP Help Portal, Transition Information (see tab "Implement")

SAP ERP SAP S/4HANA SAP S/4HANA Adoption Starter: A free-of-charge service to develop your roadmap guided by SAP-experts

SAP ERP SAP S/4HANA Transition to intelligent ERP with the SAP S/4HANA Movement program

SAP ERP SAP SuccessFactors Employee Central SAP Help Portal: Employee Central

SAP ERP SAP SuccessFactors Employee Central sap.com: Solution Overview

SAP ERP SAP SuccessFactors Employee Central Payroll

SAP Help Portal: SAP SuccessFactors Employee Central Payroll

SAP ERP SAP SuccessFactors Performance & Goals SAP Help Portal: SAP SuccessFactors Performance and Goals

SAP ERP SAP SuccessFactors Recruiting SAP Help Portal: SAP SuccessFactors Recruiting

SAP ERP SAP SuccessFactors Recruiting Posting SAP Help Portal: SAP SuccessFactors Recruiting


http://s4hana.com

http://s4hana.com

http://s4hana.com

https://www.sap.com/documents/2019/05/44b3ebd5-4b7d-0010-87a3-c30de2ffd8ff.html?infl=4eb4c88f-4498-4868-82be-f827523488d5




https://help.sap.com/viewer/p/SAP_S4HANA_ON-PREMISE



https://webinars.sap.com/s4-hana-adoption-starter-reg-platform/en/home




https://www.sap.com/products/s4hana-movement.html



https://help.sap.com/viewer/product/SAP_SUCCESSFACTORS_EMPLOYEE_CENTRAL/

https://help.sap.com/viewer/product/SAP_SUCCESSFACTORS_EMPLOYEE_CENTRAL/

https://www.sap.com/uk/products/employee-central-hris.html

https://help.sap.com/viewer/product/SAP_SUCCESSFACTORS_EMPLOYEE_CENTRAL_PAYROLL



https://help.sap.com/viewer/product/SAP_SUCCESSFACTORS_PERFORMANCE_AND_GOALS/



https://help.sap.com/viewer/product/SAP_SUCCESSFACTORS_RECRUITING/

https://help.sap.com/viewer/product/SAP_SUCCESSFACTORS_RECRUITING/

https://help.sap.com/viewer/product/SAP_SUCCESSFACTORS_RECRUITING

https://help.sap.com/viewer/product/SAP_SUCCESSFACTORS_RECRUITING

3 Advanced System and Landscape Analysis



It is our ambition to give you clear guidance for the overall journey, however, the topic selection and level of engagement are of course the choice of the customer and should follow your individual needs. For all topics we have structured the available tools and services along the following levels:


You are in the driver seat to select, in any case the topics and levels follow a consistent and synchronized concept and can be combined as required.

3.1 Scoping the Digital Core

● Strategic scoping of the transition effort● Assess current landscape setup point● Discover needs for consolidations or for separate instances, for example, by region or by division● Agree on high-level desired end-state and the topology of the solutions● Get ready for the next level of planning in SAP Transformation Navigator, transition steps such as greenfield

vs. conversion, or rollout approaches, and end prioritizations to define where to start


Advanced System and Landscape Analysis

Concept “Scoping the digital core” is a strategic precursor to more detailed architecture considerations and transition planning activities. It is intended to give these follow-up activities a clear direction. A possible but rather atypical example could be the following: A company has different and changing business models for different business divisions. This situation drives the company to establish tailored solutions by division, which might result in the parallel execution of the next steps per division, for example, modeling using SAP Transformation Navigator, start- point determination, and quick value assessment.

In most case there will be more drivers to simplify the solution landscape to not only reduce IT total cost of ownership (TCO), but to also achieve business synergies and agility. The amount of desired harmonization and consolidation is customer-specific and the following activities in the context of outside-in guidance and joint planning will help to validate planning assumptions.


To run a “Planning the Digital Core” as a self-service, a small set of templates and instructions can be used to help getting to an outcome. Often, former enterprise architecture efforts can be re-used or refined to not start from scratch.

Outside-In Guidance

With the SAP S/4HANA Discovery Workshop, companies assess the relevant scope of SAP S/4HANA and, thus, the definition of the digital core. Even though the discovery workshop includes an introduction to SAP S/4HANA and its value drivers, the workshop will also evaluate potential transition scenarios and provides an outlook on typical implementation approaches.


The more in-depth “Scoping the Digital Core” can be done using the Innovation Strategy and Roadmap (ISR) service. During this service, change drivers are identified and to-be capabilities of the future landscape are derived. This perspective includes business and technical capabilities, and non-functional criteria such as scalability and maintainability. The core outcomes are the target application, technical architecture and the desired transition path. As the ISR offering includes a prioritization and road-mapping exercise to trigger funding decisions, it is clear that the planning effort will go beyond the strategic level and includes possible prototyping efforts and other deep dives to validate architecture proposals.

Your Technical GuideAdvanced System and Landscape Analysis P U B L I C 15


Implementing the digital core implies all activities of the scoping the digital core are done, and a number of transition programs will be kicked off according to a defined transformation roadmap. As transformation programs often run for multiple years, it makes sense to revisit and refine some of the former planning results. Typically, these revisions should still be in line with the initial planning cycle and, therefore, rather focus on specific product transitions and specific transition questions. An example could be an effort on how to accelerate a running rollout program.

3.2 Advanced System Analysis

● Analysis of the source ERP system to prepare for an SAP S/4HANA system conversion: Required changes, important aspects to be considered in advance of the project start

● The SAP Readiness Check summarizes many important aspects of the conversion and displays the result in a dashboard that can be used for follow-up discussions and further investigations.

● For a new implementation of SAP S/4HANA the SAP Readiness Check can give some insights into upcoming application changes as well, however the focus of the tool is the system conversion scenario.

The SAP Readiness Check tackles the following aspects of a conversion to SAP S/4HANA:

● SAP business functions compatibility check● SAP add-on compatibility check and information about installed 3rd-party add-ons● High-level custom code analysis● Recommended Fiori apps



https://help.sap.com/viewer/p/SAP_READINESS_CHECK

● SAP S/4HANA target system sizing● Simplification Item check● Business process analytics● SAP Custom Development projects● Associated links● Planned for Q2: Data Volume Management analysis● Planned for Q2: Business Warehouse extractors check

1. SAP Business Functions and SAP Add-On Compatibility Check, Information About Installed 3rd-Party Add-Ons● Before you can convert your existing SAP ERP system to SAP S/4HANA, you need to analyze whether all

SAP and 3rd-party add-ons are compatible with SAP S/4HANA, and identify the compatibility of active business functions in your system.

● The SAP Readiness Check does that analysis based on your current SAP ERP 6.x system and lists the status in the dashboard.

Please see the following SAP Notes for more information:

● 2214409: SAP S/4HANA: Compatible Add-ons● 2834099: SAP S/4HANA 1909: Compatible partner products

2. High-Level Custom Code Analysis and SAP Custom Development Projects● To transition to SAP S/4HANA, you need to analyze your custom code to investigate the impact of

simplification items and data structure redesign in the digital core of SAP S/4HANA. You can run an analysis of impacts on custom code right now, long before the actual start of an S/4HANA conversion or implementation project.

● The SAP Readiness Check for SAP S/4HANA provides a high-level analysis of the SAP S/4HANA-related aspects. However, you'll need to do an in-depth analysis using SAP Solution Manager 7.2 and NetWeaver 7.52-based tools once you kick off the project itself.

Please see the following resources for more information on the topic:

● SAP S/4HANA System Conversion – Custom Code adaption● ABAP Testing and Analysis Community● Innovation Services and Solutions (formerly custom development projects)

3. Recommended Fiori Apps● SAP Fiori is the new user experience for SAP software. It applies modern design principles to a set of

common business apps, making them much simpler to use. Customers can adapt and create their own SAP Fiori apps tailored to their own needs. UX design services as well as design and development tools are available. The SAP Fiori user interface (UI) can be run on desktop machines, and a mobile version is available for all devices. For many SAP classic transaction codes, which you know from your previous SAP ERP-based solution, we have designed new SAP Fiori apps tailored to specific users. In most cases, the classic transactions remain so that you can decide how quickly to do your end-users transition to the new SAP Fiori apps.

● The SAP Readiness Check gives you Fiori app recommendations based on your historic ERP transaction usage.


● SAP Fiori information


https://launchpad.support.sap.com/#/notes/2214409


https://blogs.sap.com/2017/02/15/sap-s4hana-system-conversion-custom-code-adaptation-process/

https://www.sap.com/community/topic/abap-testing-and-analysis.html

https://www.sap.com/services/innovation.html

https://www.sap.com/products/fiori.html

● SAP Fiori Reference Library

4. SAP S/4HANA Target System Sizing

● To transition to SAP S/4HANA and the new digital core, it's important to your future SAP S/4HANA system and associated landscape to do sizing. Sizing is an iterative process to translate business requirements into hardware requirements. Sizing not only means to determine the new SAP HANA and SAP S/4HANA memory requirements, but to also consider other hardware requirements such as CPU power, disk space, I/O capacity, and network bandwidth.

● The SAP Readiness Check addresses the part of memory and disk sizing as an initial first step and presents the results in the SAP Readiness Check dashboard.


● General sizing overview● SAP Note 1872170: SAP S/4HANA sizing● SAP Note 2363248: SAP BW/4HANA sizing

5. Simplification Item Check

● A side-effect of the innovations included in SAP S/4HANA, and ones planned to be included in the future, is that they could introduce some disruption. Simplification Items describe business functionalities that have been simplified in SAP S/4HANA, or replaced with new functionality, or that have been removed from SAP S/4HANA. To check which ones are relevant to you, the simplification items must be mapped to your current system usage.

● The SAP Readiness Check for SAP S/4HANA runs this analysis on your existing SAP ERP system and presents the results in the SAP Readiness Check dashboard. You will then only see those Simplification Items that are impactful to your specific ERP system.


● SAP Simplification Item catalog for an overview about all simplifications● 2769531: SAP S/4HANA 1909: Release Information Note● 2799003: SAP S/4HANA 1909: Restriction Note

SAP Value Assurance service packages provide a methodology, best practices, guided configuration, implementation, data migration, development expertise, and tools for your transition to SAP S/4HANA, and address the above topics in further detail. There are existing services for the various workstreams such as Application Design & Configuration, Custom Code Extension, Technical Architecture & Infrastructure and many more.

Please contact your SAP representative in order to find out more about SAP Value Assurance services.

3.3 Country and Language Coverage / Global Solutions Without Boundaries

● The new SAP Localization Hub and Translation Hub are innovative approaches from SAP Globalization Services to offer flexible localization and translation functionality. For more information, see SAP Note 2397764.



https://fioriappslibrary.hana.ondemand.com/

https://www.sap.com/about/benchmark/sizing.html



https://launchpad.support.sap.com/#/sic/



http://sapsupport.info/offerings/s4hana-service-packages/



● SAP products such as SAP S/4HANA can meet diverse business and legal requirements worldwide, and support multiple languages, currencies, and time zones using built-in translation and localization tools.

● For example, SAP S/4HANA 1610 supports 39 languages and 63 country versions. The available languages can be used concurrently and in any combination.

● Your employees can select the language of their choice for the User Interface (UI).

Description ● All companies must be able to succeed in a global marketplace. To do that, they need immediate access to critical data across an extended value chain – data that's available in a range of formats and languages. Your organization must be able to comply with a range of country-specific financial reporting standards, tax calculations, and laws.

● SAP products, such as SAP S/4HANA, are designed to meet diverse business and legal requirements worldwide and to support multiple languages, currencies, and time zones with built-in translation and localization tools. They give you the scalability and flexibility needed to succeed in today’s global environment.

● SAP provides versions for many countries with localized functionality in flexible deployments on-premise and on Cloud. For example, the newest SAP product version SAP S/4HANA 1610 on-premise supports 39 languages and 63 country versions (Financials & Operations).

● All SAP solutions access a common terminology database, to ensure consistency and clarity throughout the enterprise. You can use the available languages concurrently, and in any combination, with SAP Unicode.

● Your employees can also select the language of their choice for the UI.

Further Information

● SAP Globalization landing page● Comprehensive information on Globalization topics - has details about country versions

with localized functionality (SAP S-user required), and more● Product availability matrix for language information for all SAP products. (SAP S-user

required)


https://support.sap.com/en/product/globalization.html


https://apps.support.sap.com/sap/support/pam

SAP DBS Service Offering

● SAP Globalization Services offers a broad range of dedicated services, such as globalization and localization workshops, which are available at https://support.sap.com/en/product/globalization.html under Service Offerings.

● The SAP Localization Hub and Translation Hub are innovative approaches from SAP Globalization Services to offer flexible localization and translation functionality. For more information, see SAP Note 2397764..

● If you have questions, you can reach us at [email protected].

Effort on Customer Side

● The time and effort needed set up for globalization depends on how many countries you're planning to do business with.

3.4 Consistent Framework for Transformation Project using SAP TCO Model Elements

● The SAP Total Cost of Ownership (TCO) model covers all cost components across the solution lifecycle.● Customer references and improvement ranges are available per cost component.● To align IT and business, SAP shows how these business capabilities are covered by SAP solutions.● Project and Ongoing Operation Effort Estimate compares the as-is cost situation to the SAP S/4HANA

transition over a 5-year timeframe.● Solution enablers and accelerators help reducing the TCO.

Concept In this comprehensive TCO model, hardware and software investment cost, implementation cost, and ongoing cost (including continuous improvement projects) are covered.

Within four different levels, customers can now experience the offerings for cost estimates which are consistently linked to this TCO model. Due to the implementation of SAP S/4HANA,






mailto:[email protected]

the ratio between different cost components will change. Additionally, SAP is offering several accelerators to decrease the total cost.


In the first step, the customer uses SAP Transformation Navigator to get a first overview about potential benefits and the transformation accelerators. Examples from other customer who already moved to SAP S/4HANA are available, and the SAP S/4HANA TCO Explorer shows potential ranges of cost reductions based on TCO elements over a five-year period.

Outside-In Guidance

In the next step, an SAP expert will adjust parameters and accelerators of the SAP S/4HANA TCO Explorer together with the customer. In addition, a potential to shift focus of IT from operations to new topics will be evaluated. All results will then feed into a joint planning and calculation of the transformation efforts.


The joint planning is done by the customer and the SAP expert. All defined TCO cost elements are quantified. Based on company-specific cost rates, a detailed cost planning will be created and the common realization will be started. If the customer also performed a Readiness Check or used other SAP services, their results can be integrated.


The tracking of the prior defined TCO elements is one of the key elements of the final level of collaboration. Deviations will be identified and adjustments will be made. This leads to an optimization of the individual customer TCO cost elements over time.

3.5 SAP HANA Enterprise Cloud: Your Accelerated Path to SAP S/4HANA Cloud

● SAP HANA Enterprise Cloud is a fully scalable and secure cloud offering delivered by SAP with a comprehensive support model.

● We provide our customers with unmatched SAP HANA expertise, SLAs that span the entire application and infrastructure stack, a full menu of functional and technical managed services, and all the control you would expect to have on-premises but, in a private managed environment.

SAP HANA Enterprise Cloud empowers organizations to achieve business goals, accelerate growth and innovation, drive IT and business transformation, quickly deliver business outcomes, and reduce operating risk. Whether you're moving a single application to the cloud, or your entire digital core, SAP HANA Enterprise Cloud can address your business and IT operating needs.

Acknowledged as the standard for running SAP HANA in the cloud, SAP HANA Enterprise Cloud is the only solution that delivers a comprehensive, coordinated, end-to-end approach and suite of managed services to unlock the full value of SAP HANA. SAP HANA Enterprise Cloud drives:

● Innovation at your own pace.● An adaptive, scalable operating model.● Reduced time and cost to go-live.● A guided path, for our customers, to move from an on-premise environment to a cloud-ready state.● A fully managed environment with the highest level of availability, security and performance guarantees.

We partner with you to create a deployment approach that's tailored to reduce risk and help you achieve business goals. Our approach is based on:



● Our SAP HANA cloud expertise.● The SAP HANA Enterprise Cloud reference architecture.● Direct integration with SAP Development and Innovation.● A fully adaptable, customized private cloud solution.● Total integration across SAP HANA-based applications and related solutions.● Flexible, pre-built services for modular, rapid deployment.● A coordinated and flexible suite of managed services.

SAP HANA Enterprise Cloud empowers you to control cost and risk, so you can focus on value, growth, innovation, and achieving your digital future.



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Content


1 Basic Transition Scenarios and License Policies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.1 Basic Transition Scenarios. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41.2 License and Subscription Policies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2 Transition Heatmap and Prioritization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.1 Transition Types and Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.2 Transition Heatmap. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92.3 Licenses and Subscriptions for Your Target Product Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

3 Planning, Timeline and Commercials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153.1 Conversion Versus Greenfield Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153.2 Starting Point Determination and Selection of The Migration Path . . . . . . . . . . . . . . . . . . . . . . . . . . 173.3 Proposal for The Next Steps – Leverage Complementing Tools and Services. . . . . . . . . . . . . . . . . . . 193.4 Service Offerings by Partners. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

2 P U B L I CYour Transformation Guide

Content

About This Document

● The Transformation Guide aims to help customers move from seeing the need for digital transformation to starting the journey.

● It summarizes the output of the SAP Transformation Navigator self-service tool from the transformation perspective. A business guide and a technical guide are also available to comprehensively address all stakeholder needs.

● Moving to execution, the Transformation Guide starts with overall transformation scenarios and SAP services, summarizes your transition heatmap and prioritization, and outlines the planning, timeline and commercials going forward.

● Also, it lists some of the key partner offerings available.

In this digital economy, it’s winner takes all, and early movers are typically the winners. But, there’s a big difference between understanding the need to move, and knowing where to go – with the SAP Transformation Navigator we offer a comprehensive self-service tool to start the journey.

This transformation guide summarizes all information and decisions you have made in the SAP Transformation Navigator self-service tool, but enriches them with relevant overall SAP information, and an overview of the follow up work that we've seen useful in many customer cases.

The storyline starts from a strategic perspective, summarizes the need for action, and outlines the necessary follow-up work.

Transition Scenarios and License Policies

Starting from SAP’s overall transition scenario experience, relevant service frameworks can help build the journey for your company. In addition, understanding overall license policies is included to help set the framework.

Your Transition Heatmap and Prioritization

Based on the selected product map and the associated product recommendations, a heatmap of the necessary transitions is generated taking underlying transition types into account. License and subscription changes are outlined, with the applicable respective policies.

Outline Planning, Timeline and Commercials Going Forward

Given your company’s implementation and data center policies, additional steps are needed to estimate the effort, and to sequence the phasing of the journey ahead. These steps lead to a full commercial picture and proper implementation plan.


Your Transformation GuideAbout This Document P U B L I C 3

1 Basic Transition Scenarios and License Policies

1.1 Basic Transition Scenarios

Here is a broad list of the basic transition scenarios:

● Cloud Adoption: Leverage LoB Cloud solutions (HR, Supply Chain, Sales, and so on).● Innovation Platform Adoption (Leonardo, SAP Cloud Platform).● Digital Core: Early establishment of S/4HANA as basis for further innovation.● Instance Consolidation.● Alternative paths / sequencing option (should be assessed when reshaping the landscape)

Description ● When assessing different adoption paths, many assessments are needed to consider these factors: Early value realization, cost & complexity of transition, risk, and others.

● For adopting LoBs to the cloud and customizing solutions, consider these options: SAP Marketing Cloud, SAP SuccessFactors suite, and SAP Ariba.

● For a customer service innovation strategy, consider the rapidly growing innovation options available on SAP Cloud Platform that address predictive analytics, big data, IoT, and more.


Basic Transition Scenarios and License Policies

● Depending on the maturity of your existing ERP solution, it might make sense to establish S/4HANA early as the digital core for further innovations.

● If your current landscape is highly fragmented, it may be best to consider instance consolidations or SAP Central Finance as your innovation priorities.

Further Information

● The SAP Transformation Navigator gives recommendations. for all transition scenarios.● SAP produces references on industry architecture, which outline the typical target

architecture of each industry.

Effort of Customer Side

● Transformation is a core element of an overall IT strategy, and therefore will require that the organization gets fully aligned in delivering the business value. The work involved will depend on the scope of the transformation.

Description ● Moving towards a new solution landscape is basically a large set of single transitions made over time.

● There are four major types of transitions :○ Upgrade○ Conversion○ Merge / Data transfer○ Process transformation / New implementation

● The transition type that a business is best suited for depends not only from the current and target solution, but other customer-specific factors:○ Conversion is desirable if the current solution still largely fulfills future business

requirements.○ A new implementation may be best if there's a clear desire to implement a new

business model and new processes that can't be fulfilled easily in the current system.

Further Information

● Analyze current solution (including custom extensions and modifications) with regards to compatibility of target solution and business requirements.

● For more information, see this best practices document Elements of designing a Transition Roadmap to SAP S/4HANA

SAP DBS Service Offering

● SAP Value Assurance service packages for SAP S/4HANA covers planning and foundational implementation for end-to-end setup, service, and support.

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● The big picture can be assessed by utilizing SAP Advisory Services which provide support across the entire innovation lifecycle with a unique combination of business, industry and SAP skills.

1.2 License and Subscription Policies

● We provide license information for recommended products, based on the currently used products and the selected additional capabilities.

● To move from a current product to a recommended product, we have conversion policies that simplify the transition under commercial and formal aspects.

● For each recommendation to replace a current product, we show the general policies available, which may be used in your individual landscape and license situation.

Moving to an SAP S/4HANA-centric product map may have an impact on your existing license and subscription agreements. We offer you transparency, and simple, flexible, and fair rules to accelerate your transformation projects and adapt your SAP application landscape to your evolving business requirements.

SAP S/4HANA Product Conversion Policy

Customers who have previously licensed a classic solution, which now has a corresponding S/4HANA version, may use their previous investment in the classic solution to obtain a previous investment credit toward the corresponding license of the new S/4HANA solution.

SAP S/4HANA Contract Conversion Policy

Customers who have previously licensed classic solutions, may now take their entire investment in the classic solutions, and obtain a previous investment credit towards the new S4H Solutions via the new S/4HANA Contract.


Basic Transition Scenarios and License Policies

https://www.sap.com/services/advisory-development/business-transformation.html

SAP cloud and on-premise extension model

The SAP cloud and on-premise extension models give customers an opportunity to replace existing on-premise licenses and maintenance payments with new cloud subscriptions or other on-premise solutions from SAP. Further information about the SAP cloud and on-premise extension models can be found on the SAP Support Portal. Your SAP account executive will advise you on the commercial options hereunder for your landscape transition.

Compatibility Packs If you want to move from SAP ERP to SAP S/4HANA with simplified engines completely, the foundation license for SAP ERP is simply replaced with the license for SAP S/4HANA Enterprise Management. However, if you run business scenarios that still require some traditional business suite solutions, compatibility packs allow you to use certain traditional SAP software solutions for a specified period of time to simplify the transition to SAP S/4HANA.

For details about the scope and licensing of compatibility packs in SAP S/4HANA, please refer to SAP Note 2269324.

SAP HANA license For SAP products deployed on-premises or under the private cloud option that run on SAP HANA, an SAP HANA runtime or full-use license may be required.

For SAP products deployed in the cloud that run on SAP HANA, no separate SAP HANA runtime or full-use license is required. The usage right is included in your subscription.

If your SAP S/4HANA-centric landscape requires a set of software licenses and subscriptions, we will give you an overview of required licenses and subscriptions to simplify the engagement with your SAP account team. Please note that additional software licenses or subscriptions may be needed for users or additional technical products. Your SAP account executive will advise you on the commercial options specific to your landscape transition.

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2 Transition Heatmap and Prioritization

2.1 Transition Types and Services

The following shows the transition types and available services for all product transitions.

Description of Transition Types

Upgrade Classical upgrades follow a highly standardized and automated approach.

Example: Upgrade from SAP PI to SAP PO

Conversion During conversions, most data and configuration structures are preserved when moving from the current to the target product. Specific conversion steps and procedures must be applied before or during the conversion.

Example: Conversion from SAP ERP to SAP S/4HANA

Example: Conversion from SAP BW to SAP BW/4HANA

Data Transfer / Merge

If a functionality is transferred from one product to another, this transition type uses a specific approach for taking over most of the old code, configuration, and data.

Example: Data transfer from APO-PP/DS to SAP S/4HANA (Manufacturing)

Process Transformation / Re-Implementation

Process transformation implies a re-implementation of business processes to be adopted. These implementations can be based on reference architectures, best practices, and model companies (plus industrialized loading of data).

Example: Process transformation from SAP CRM Marketing to SAP Commerce Cloud

Example: Process transformation from SAP CRM, Web Channel to SAP Commerce Cloud

New Access Type / Discontinued Content

When moving to a new platform, some current application parts and technologies are replaced by others. If the current application parts and technologies don't contain the business data, transition efforts are generally less. An example would be discontinued analytics models.

Example: Discontinued content when moving from SAP HANA Analytics for ERP to SAP S/4HANA (embedded analytics)

Example: Discontinued content when moving from SAP CRM Sales for iOS to SAP Fiori for SAP CRM

Context-Specific This transition type depends on the capabilities you're using.


Transition Heatmap and Prioritization

Service Focus

Industry Relevance Current Product

Recommended Product

Transition Type Services

Advisory SAP S/4HANA SAP Value Assurance service packages for SAP S4HANA - Details

Advisory SAP S/4HANA SAP Value Assurance service packages for SAP S4HANA - Overview

Implementation/Migration

SAP S/4HANA Implementation of Analytics with SAP S/4HANA


SAP S/4HANA Implementation of Health and Safety for SAP EHS Management


SAP S/4HANA SAP Model Company for Central Finance


SAP S/4HANA SAP Model Company for Connected Manufacturing


SAP S/4HANA SAP Model Company for Finance


SAP SuccessFactors Recruiting

Implementation of Recruiting Management for Cloud

2.2 Transition Heatmap

This table shows all transitions to recommended products including related transition types.

Type Industry

Current Products / Additional Capabilities & Solutions Recommended Products Transition Type

Capabilities Priority

Product SAP Supply Chain Management

● SAP S/4HANA Process Transformation

3 1

Product SAP ERP ● SAP S/4HANA Conversion 23 1

Product SAP ERP ● SAP Supply Chain Management

Context-specific 1 2

Product SAP ERP ● SAP SuccessFactors Employee Central Payroll


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Type Industry

Current Products / Additional Capabilities & Solutions Recommended Products Transition Type

Capabilities Priority

Product SAP ERP ● SAP SuccessFactors Recruiting Posting


1 2

Product SAP ERP ● SAP SuccessFactors Employee Central


2 2

Product SAP ERP ● SAP SuccessFactors Performance & Goals


1 2

Product SAP ERP ● SAP SuccessFactors Recruiting


1 3

Product SAP ERP ● SAP 3D Visual Enterprise Generator


Product SAP ERP ● Concur Travel Process Transformation

1 4

Product SAP ERP ● Concur Expense Process Transformation

1 4

Product SAP ERP ● SAP Time Management by Kronos


Product SAP Supply Chain Management

● SAP Supply Chain Management

Stay On 1 0

Product SAP ERP ● SAP ERP Stay On 2 0

Capability Engineering, Construction and Operations

Supplier Discovery ● Ariba Network New Capability 1 0




New Capability 1 0


Supplier Onboarding and Qualification


New Capability 1 0




New Capability 1 0



2.3 Licenses and Subscriptions for Your Target Product Map

● We provide license and subscription information for the recommended new products based on the currently used products and selected additional capabilities.

● The license and subscription information is preliminary and serves as an orientation. In some cases, additional license materials such as user licenses may be required.

● For comprehensive license and subscription information, and the application of our product and contract conversion policies, or for the SAP cloud and on-premise extension models, your SAP account executives and their teams can consult you in detail.

If your recommended product map contains any products beyond the products you are currently using, this section contains a list of these products with the license and subscription information. If you have selected certain capabilities to determine the recommended products, we structure the license and subscription information based on the capabilities.

We assume that the products you are currently using are covered under your existing license and subscription agreements, so we limit license and subscription information to the additional products.

Please note that additional licenses or subscriptions may be required, either for named users or to reflect usage volumes. Your SAP account team will work with you to establish the final set of required software licenses and subscriptions, including a quotation under consideration of the applicable transformation policies.

We provide license information based on the products we recommend based on your currently used products and your business and IT strategies and preferences.


License information for recommended products derived from currently used products

Current ProductRecommended Product

License Material (Number)** Units Type

Contract Conver

sion*

Product

Conver

sion*

Cloud Exten

sion Model*

SAP ERP SAP 3D Visual Enterprise Generator

8007150 Users Subscription - - -




7019095 Users License - - -


7018211 Users License - - -

SAP ERP SAP S/4HANA 7018538 Flat Fee License Yes No No

SAP ERP SAP S/4HANA 7018652 Users License Yes No No



SAP ERP SAP S/4HANA 8007179 FUE Users Subscription - - -

SAP ERP SAP SuccessFactors Employee Central


SAP ERP SAP SuccessFactors Employee Central


SAP ERP SAP SuccessFactors Employee Central Payroll


SAP ERP SAP SuccessFactors Performance & Goals


SAP ERP SAP SuccessFactors Recruiting


SAP ERP SAP SuccessFactors Recruiting Posting

8004475 Job Posting Subscription - - -

SAP ERP SAP Time Management by Kronos




Current ProductRecommended Product


Contract Conver

sion*

Product

Conver

sion*

Cloud Exten

sion Model*












SAP S/4HANA 8007179 FUE Users Subscription - - -


SAP S/4HANA 7018654 Users License Yes No No






SAP S/4HANA 7018538 Flat Fee License Yes No No


License information for capabilities derived from your business requirements

IndustryLine of Business Business Area


Recommended Product



Sourcing and Procurement

Sourcing Supplier Discovery (Ariba)

Ariba Network 8005116 Suppliers Subscription



Supplier Management

Supplier Discovery (Ariba)

Ariba Network 8005116 Suppliers Subscription



Supplier Management

Supplier Information Management (Ariba)

Ariba Sourcing, cloud edition

8007908 Users Subscription



Supplier Management

Supplier Performance Management (Ariba)

Ariba Sourcing, cloud edition

8007908 Users Subscription

Columns titled “Contract Conversion”, “Product Conversion”, and “Cloud Extension” indicate the availability of a given “recommended product” under the respective conversion policy or extension model. This information does not represent a recommendation from SAP to apply such policy in your individual landscape and license situation. Your SAP account executive will advise you on the commercial options specific for your landscape transition.

This license material is a base material. Additional license materials are available to reflect volume pricing tiers.



3 Planning, Timeline and Commercials



It is our ambition to give you clear guidance for the overall journey, however, the topic selection and level of engagement are of course the choice of the customer and should follow your individual needs. For all topics we have structured the available tools and services along the following levels:


You are in the driver seat to select, in any case the topics and levels follow a consistent and synchronized concept and can be combined as required.

3.1 Conversion Versus Greenfield Decision

Goals of Greenfield Vs. Conversion Workshop:

● Discuss differences between greenfield, brownfield and conversions.● Establish customer goals in S/4HANA adoption.● Determine what blockers exist to prevent conversion.● Summarize implications from a business, technology, and transformation perspective.

Your Transformation GuidePlanning, Timeline and Commercials P U B L I C 15

Concept For the evaluation of the best transition scenario, six key considerations for the conversion-vs.-greenfield comparison should be discussed with SAP experts. Each of the six criteria influence the decision either in the direction of system conversion or new implementation. If the majority of the answers is located towards the right side of the graphic, a system conversion is recommended. Otherwise, if the majority of the answers is located towards the left side of the graphic, a new implementation is recommended.


Use the Transformation Navigator tool to evaluate six questions based upon the customer situation. Use the self-service Readiness Check to determine what conversion would fit.

Outside-In Guidance

Invest one day of an SAP TQM and/or EOD (Expert On Demand) to review detailed customer examples of what other peers are doing and reasons why. Conduct a guided discussion on pros and cons of greenfield, brownfield and conversion, and the impact of each. Receive high-level advice based on the customer situation.


Invest two+ weeks in an SAP DBS Value & Implementation Strategy (VIS) service. Start from Readiness Check results of the customer's ECC system. Derive Must-Dos and optional amendments based on the simplification list for the business priorities. Evaluate simplifications and innovations with regards to benefit and complexity. Identify pre-projects. According to the business priorities, the to-be landscape gets defined. Based on this, the architectural impact and transition scenarios, for example conversion vs. greenfield, will be analyzed and a recommendation will be developed.


Invest six+ months in a full implementation of the target state solution. The implementation type depends on the chosen transition scenario, which is either the migration factory project for system conversion or the SAP model company based on the digital theme for a new implementation. SAP DBS can support a customer and partner with the transition to SAP S/4HANA using the Value Assurance services. This will ensure a successful transition with minimum customization. Value Assurance provides a safeguarding foundation throughout the project with additional supporting services in the areas of Planning & Design. All SAP services are leveraging the SAP Activate Methodology, which is the innovation adoption framework that expedites SAP S/4HANA implementations throughout the customer lifecycle. It offers ready-


Planning, Timeline and Commercials

to-run digitized business and technology processes, guided configuration, and next-generation methodologies.

3.2 Starting Point Determination and Selection of The Migration Path

Goals of Starting Point Determination Workshop:

● Discussion of typical S/4HANA transition scenarios and the five pillars of where to start.● Establish customer goals in adopting the digital core.● Discuss how other customers in similar situation have attacked the problem.● Practice risk / effort / value mapping.● Summarize implications of target path from a business, technology, and transformation perspective.

Concept These are the five principles to define the default approach, of course to be checked against individual pre-conditions and priorities:

1. Cloud First - Cloud moves first. Strip out cloud modules first, then move to SAP S/4HANA.2. Central Finance - If cFIN is part of the desired architecture, start there.3. S/4 Conversion Decision - Conversion is used if a technical project needs to be separated

from a business project.


4. S/4 as a Consolidation Platform - Move first your ECC instance into S/4HANA, then consolidate the other ECC instances into this one.

5. Legal Entity as Slicing - Within one instance, a legal entity used for phasing the project.


Analyze the decision stories for each of the major archetypes:

● Low Risk: Leads to separate instances with separate go-lives when timing is right. Design decisions are based on a needs basis, with localizations taking place in individual instances. Typically one development system and multiple quality and production.

● Low Risk & Consolidation: A major beverage distributer is going through a complete IT transformation. The end state solution consists of two instances with a North America (NA) instance and a “Rest of World” end state design.

● Big ROI: A large multi-national food producer currently has an existing footprint where over 50% of the revenue is on an old SAP ERP system where there is no direct path to SAP S/4HANA. ERP consolidation is a key driver, and a single global instance is the end state. The global instance for the large company will be designed for all businesses. This largest instance has the largest ROI and is the starting point for an SAP S/4HANA transformation. The other systems will be merged into the end state at a later time.

● Custom Solutions: Does not yet exist in SAP S/4HANA, thus putting a path to SAP S/4HANA must be put on hold until custom code can be adapted or desired functionality is available in SAP S/4HANA. Coke bottlers need direct store delivery before pressuring a path to SAP S/4HANA.

● Cloud First: SAP S/4HANA Cloud fits the functional requirements of this system and instances will be migrated to SAP S/4HANA Cloud as systems and localizations are ready.

Outside-In Guidance

Invest one day for a guided discussion per default principle and a joint walk through of check questions. Use the 5-principle-start-point framework to explain the overall fit of the default guidance, and create a shortlist of areas that need further evaluation.


Invest two to six weeks in an SAP DBS Innovation Strategy & Roadmap (ISR) service. The ISR service helps customers to develop a multi-year strategic roadmap which addresses their digital transformation needs. Starting from business priorities, it identifies key innovations applicable to the specific customer situation. Depicting the long-term target architecture helps to prioritize proposed enablers and initiatives. The most appropriate transition scenario will be evaluated. Taking guidance from change drivers (business and IT), enablers are being identified and a target architecture is composed. A prioritization of initiatives is driving the future 3- to 5-year roadmap.

Next steps can be the Migration Planning Workshop (MPW) if system conversion to SAP S/4HANA is chosen as transition scenario. For a greenfield approach, the Transition Planning for New Implementation (TNI) service is available.


Invest six+ months in a full implementation of the target state solution. The implementation type depends on the chosen transition scenario, which is either the migration factory project for system conversion or the SAP model company based on the digital theme for a new implementation. SAP DBS can support a customer and partner with the transition to SAP S/4HANA using the Value Assurance services. An SAP prime project execution is an option. This will ensure a successful transition with minimum customization. Value Assurance provides a safeguarding foundation throughout the project with additional supporting services in the areas of Planning & Design. A key service for the implementation is the Data Migration Design service. This service supports the preparation of your technical transformation or data migration, and



provides a valid basis to plan the landscape transformation to SAP S/4HANA in the next level of detail.

3.3 Proposal for The Next Steps – Leverage Complementing Tools and Services

● Complementing tools and services are structured along eight topics, based on the customer discussion experience.

● Self-service offerings are available for instant usage.● For each topic, SAP offers clear guidance, but you are in the driver seat regarding the depth of analysis and

level of engagement.● The engagement levels are structured in self-service, outside-in expert guidance, joint planning, and joint

execution.● Start with the self-services now!

○ Learn how the Adoption Starter Program can help you to design your move to S/4HANA in just 90 days https://support.sap.com/en/tools/upgrade-transformation-tools/s4hana-adoption-starter.html

The Business Guide, Technical Guide, and Transformation Guide have given you an overview about the most common questions that need to be answered to plan your transition to a SAP S/4HANA-centric landscape.

As a concrete next step, we recommend using now the self-services and outside-in guidance. The offerings will help you getting insights into the topics. At the end of the exercise, you will have established a first plan and have clarity where additional work is required to deepen your understanding. SAP services will help you on this journey.


https://support.sap.com/en/tools/upgrade-transformation-tools/s4hana-adoption-starter.html

If you need help, please contact your SAP service representative. If you aren't sure who to contact, please get in touch with one of our offices nearest you:

https://www.sap.com/about.html

3.4 Service Offerings by Partners

SAP partners can provide services to assist your company's digital transformation. Each of the various services is designed to work seamlessly with your SAP deployment.

The following is an overview of SAP’s Global Strategic Service Partners and a summary of their services. For a complete list of all SAP partners covering specific industries, regions or solutions, access the SAP Partner Finder: https://partneredge.sap.com/content/partnerfinder/search.html

Partner Digital Transformation Services Summary Links for Details

Accenture solves our clients' toughest challenges by providing unmatched services in strategy, consulting, digital, technology and operations. Beyond the SAP Transformation Navigator engagement, Accenture offers services to enable your digital transformation journey with SAP S/4HANA and SAP Leonardo at the core. With unique industry solutions and value accelerators, Accenture can help your business transform across all functions and deliver value and innovation using analytics, cloud, and mobility.

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Atos focuses on generating value for SAP S/4HANA digital transformation, while delivering operational and financial efficiencies. Through pre-configured industry solutions and customer experience, Atos is ready to ensure your use of SAP S/4HANA creates fast, genuine and differentiat-ing business advantage. We combine our strength in digital consulting, implementation, integration, application, appliance, and infrastructure services to bring you unique end–to-end solutions with built-in security. These end-to-end capabilities leverage our deep industry expertise, large partner eco-system and innovative IoT, Cloud, Mobility, Analytics, AI/ML and Automation assets, to help you accelerate your digital journey and drive business

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https://www.sap.com/about.html

https://partneredge.sap.com/content/partnerfinder/search.html

https://www.accenture.com/us-en/sap-index

https://atos.net/en/solutions/atos-business-accelerators


Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Beyond the SAP Transformation Navigator engagement, Capgemini’s “Highway To S/4HANA” offer provides a full suite of services to enable your digital transformation journey with SAP S/4HANA at the core. With “Highway To S/4HANA”, Capgemini helps clients to craft a tailored approach at every stage of the S/4HANA adoption journey using various tools and accelerators: assessment, pre-configured scenarios, process mining, deployment options, solution options, functional scope, pre-checks, and custom code analysis.

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Cognizant is one of the world's leading professional services companies, transforming clients' business, operating and technology models for the digital era. Beyond the SAP Transformation Navigator engagement, Cognizant offers follow up services to enable your digital transformation journey with SAP S/4HANA at the core. The key differentiator is our unique industry-based, consultative approach which helps clients envision, build and run more innovative and efficient businesses leveraging SAP products and tools.

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Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including 80 percent of the Fortune 500 and more than 6,000 private and middle market companies. Beyond the SAP Transformation Navigator engagement, Deloitte offers services to help you with all phases of your digital transformation powered by the S/4HANA digital core whether in a public or private cloud, or behind your firewall. Deloitte offers industry specific strategy, assessments, pre-configured best practice templates to complement the SAP Model Company, SAP Leonardo innovation services, and complete S/4HANA migration consulting.

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DXC Technology helps clients harness the power of innovation to thrive on change and our deep experience gives us a clear and confident vision to help clients navigate the future. Beyond the SAP Transformation Navigator engagement, DXC offers follow up services to enable your digital transformation journey with SAP S/4HANA at the core. DXC works with clients to create and execute a roadmap that starts with the business case and goes through solution design and build to ongoing digital operations with intelligent improvement.

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https://www.capgemini.com/resources/highway-to-sap-s4hana-get-the-best-out-of-saps-s4hanar-transformation/

https://www.cognizant.com/services

https://www2.deloitte.com/global/en/pages/technology/topics/sap-s4-hana.html

https://www.dxc.technology/enterprise_and_cloud_apps/ds/143816-planning_and_delivering_your_journey_to_s_4hana


EY is a global leader in professional services ranging across assurance (audit), tax, transaction and advisory services. Beyond the SAP Transformation Navigator engagement, EY offers a wide range of services to enable your digital transformation journey with SAP S/4HANA at the core. The key differentiator is our packaged offerings such as Agile Finance and Agile Supply Chain, that accelerate the entire customer engagement lifecycle from business case development to implementation to value realization leveraging SAP products and tools.

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HCL is recognized as a global SAP implementation leader, by leading analysts like Gartner and IDC. As a global SAP implementation partner and with 9000+ SAP experts, we offer end-to-end SAP offerings and innovative industry solutions. HCL has developed a value-based program from our in depth analysis of the new technology and the feedback from our clients to make their SAP HANA and SAP S/4HANA journey non-disruptive and outcome based. HCL helps clients migrate to SAP S/4HANA to start realizing the initial benefits offered by the speed and simplification that is inherent with the new technology and platforms such as SAP Cloud Platform

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IBM Global Business Services consultants help organizations create new sources of value, digitally reinvent operations for greater efficiency, and drive growth. Beyond the SAP Transformation Navigator engagement, IBM offers follow up services to clients to enable their complete digital transformation journey with S/4HANA at the core. Key highlights include IBM S/4HANA Value Accelerator service, where our IBM HANA Impact Assessment and approach for business case creation are key parts, and multiple industry accelerators, based on our IBM Industry IMPACT solutions, to complement SAP’s Model Company and Value Assurance Packages to speed up time to value.

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Infosys is an Indian multinational corporation that provides business consulting, information technology and outsourcing services. Beyond the SAP Transformation Navigator engagement, Infosys offers follow up services to enable your digital transformation journey with S/4HANA at the core. Key service offerings include value assessment, business case development and Infosys built S/4HANA migration tools and accelerators to ensure customer success.

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http://www.ey.com/gl/en/about-us/our-alliances/ey-sap-alliance#section1

https://www.hcltech.com/sap

https://www.ibm.com/services/sap/s4hana

https://www.infosys.com/services/sap/offerings/s4-hana.html

https://www.lntinfotech.com/enterprise-solutions/sap/


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Tata Consultancy Services is an IT services, consulting and business solutions organization that partners with many of the world's largest businesses in their transformation journeys. Beyond the SAP Transformation Navigator engagement, TCS offers follow up services to enable your digital transformation journey with SAP S/4HANA at the core. A full spectrum of services offered including advisory & assessment, proof of concept, deployment, value added service & support to accelerate your business innovation and process improvement leveraging SAP products and tools.

IT Services

Consulting

Tech Mahindra is a federation of companies, bound by one purpose – to Rise. Inspired by this spirit, our legacy and values, our goal to always positively impact our partners, stakeholders, communities and the world at large, remains unshakeable. Application transitions are costly affairs and often keep enterprises from taking the next big step towards their business transformation goals. Epselon framework enables business and IT users with right insights, brings automation and helps in unlocking values from existing SAP investments. Epselon enables customers to swiftly embark on SAP Digital Transformation journey. It provides enterprise baseline information consisting of process complexities, usage and insights to SAP EhPx, HANA Database and S/4HANA. With Epselon, customers can choose their transformation path while being able to accurately plan and envisage impacts to current application support.

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T-Systems supports its customers in migrating their ERP systems and creating the optimal SAP transformation strategy.

Big data analysis, social media, mobile apps, and global networks are changing the business world: Adaptability and responsiveness have never been more critical to a company's success. Ever shorter innovation cycles are constantly redefining the requirements for organization, structure and business processes. Without cloud-based IT services, this kind of momentum could not be realized in companies. With the applications and services of the market leader SAP, companies can control business in real time, optimize data analysis, and extend business models. As a long-standing and certified SAP partner, T-Systems offers an end-to-end range of highly standardized solutions for ERP, Cloud, SAP S/4HANA, and SAP Leonardo, among others.

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https://us.nttdata.com/en/services/application-services/enterprise-applications/sap-hana-solutions-and-services

http://www.pwc.com/us/en/sap-implementation.html

http://www.tcs.com/offerings/it-services/Pages/default.aspx

http://www.tcs.com/offerings/consulting/Pages/default.aspx

https://www.techmahindra.com/en-in/techmnxt/platform/epselon/

https://www.t-systems.com/de/en/digital/sap-solutions


Wipro is a leading global information technology, consulting and business process services company focused on harnessing the power of the latest emerging technologies to help our clients adapt to the digital world and make them successful. Beyond the SAP Transformation Navigator engagement, Wipro offers follow up services to enable your digital transformation journey with SAP S/4HANA at the core. Key highlights include impact assessment, advisory and implementation services for transition to S/4HANA and a safe passage framework to move to the Cloud.

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https://www.wipro.com/

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