short presentation title - sap s/4hana value...
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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 1Public
Transform Public Sector with SAP S/4HANA®
S/4HANA
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public
AGENDA
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SAP S/4HANA: Public Sector Overview 3
6
10
12
13
Procurement Deep Dive
Portfolio and Project Management Deep Dive
Assets and Infrastructure Deep Dive
Public Sector Finance Deep Dive
Portfolio of Solutions for Public Sector from SAP
15SAP S/4HANA: Value Proposition for Public Sector
16Customers Are Achieving Value from SAP S/4HANA
8
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public
In today’s digital society, there is immense pressure on government agencies to deliver on their fundamental mandate: to provide services, to protect the society, and to enable economic prosperity. Governments on all levels are facing new pressures and challenges. Digitally experienced citizens demand the service level and customer experience they know from shopping, banking, and social media. Disasters happen more often, and with a bigger impact. Globalization puts businesses and governments under pressure.
This new digital reality has a big impact on governments at all levels. In a totally connected world, government actions and their impact are increasingly influenced by all sorts of events in other parts of the world, which increases complexity and impedes decision making. Furthermore, digitalization drives a great deal of transparency and puts decision makers under pressure, as their actions and the respective consequences are publicly evaluated and discussed in real time. On the other hand, digitalization offers many opportunities for government agencies. Policies and decisions have much better outcomes when they are based on citizens’ insight and ideas. Analysis of sentiments expressed in social networks and e-participation tools help governments understand the electorate. Agencies also have the opportunity to use data to drive policy decisions, set goals, measure performance, and increase government transparency – thus acting on facts and insights rather than on beliefs and opinions. It is important to recognize that, at the heart of all the threats and opportunities, digitalization will allow government agencies to serve their citizens better than ever.
To succeed, governments will need to put in place a coherent digital vision with a clearly articulated road map for their digital transformation. In particular, they will need to address new government models such as the individualization of government services – “government made for me” – or the possibility to scale operations up (and down) swiftly, smoothly, and productively across networks of resources. At the same time, governments are transitioning from being a provider of services to an enabler. To execute on this, government agencies not only will need to reengineer their business processes, but they will also have to evaluate if they have the right technology platform that can deliver on their vision.
This platform requires an IT architecture that provides both stability and long-term reliability for core government processes, and, at the same time, allows for flexibility in areas where change is happening on a constant basis. The digital core is the foundation for the core processes that need to run consistently and flexibly. It provides uninterrupted, real-time transactions and analytics; the ability to work with Big Data; and connectivity to line-of-business (LoB) extensions that enable supporting processes such as talent sourcing or emergency response.
SAP S/4HANA® was developed specifically to represent the digital core in this “bimodal IT architecture.” It provides government agencies with a proven framework to adopt industry best practices while attaining operational excellence – across core financial, procurement, and planning processes.
European Schools Better cost control and
compliance using self-service procurement
“The SAP S/4HANA Finance solution empowers our users with more control and drives greater accountability. We have a complete solution that meets all our needs. And SAP HANA Enterprise Cloud means that we didn't need to invest in IT staff to maintain the system.”
– Kari Kivinen, CEO, Schola Europaea, Office of the Secretary-General of the European Schools
Diakonie Michaelshoven Greater efficiency and
transparency and increased liquidity
“To be ready to take on the future, even social institutions like us –these organizations in particular, in fact – need to be structured to run like a business. That’s exactly why we’ve implemented SAP S/4HANA.”
– Uwe Ufer, Commercial Director, Diakonie Michaelshoven e.V.
Transform Your Agency’s Digital Core with SAP S/4HANA®
SAP S/4HANA: PUBLIC SECTOR OVERVIEW
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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Public
Public Sector Financials
ProcurementInfrastructure Management
• Provide holistic overview on budget situation, approval requests and alerts
• Tailored exception handling
• Increase user productivity
• Complete requesting process is supported in the SAP Fiori user experience
• Role based and quick access to the procurement information needed to analyzing purchasing spend, suppliers and contracts in real-time.
• Reduce costs by rating benchmarks, competitive bidding, volume discounts, leveling, and enforcement of rules
• Provide visibility with direct access to workforce management
SAP S/4HANA sources of valueThe value from SAP S/4HANA comes through simplification of the user experience, architecture, and process.
Simplified user experience: across all devicesSAP S/4HANA empowers front-line users with an user-centric, consumer-grade experience. SAP is driving simplification and innovation in how users work with a consistent, role-based user experience available on any device.
Simplified architecture: no aggregates – no redundanciesSAP S/4HANA has a simplified data model that provides an advanced digital data architecture, which in turn provides, in real time, a single source of the truth for both transactions and analytics. This enables extensive flexibility to adapt to changing business models, such as simulating the impact of reorganizations in minutes rather than days.
Simplified processes: key industry capabilities of SAP S/4HANA
SAP S/4HANA: PUBLIC SECTOR OVERVIEW
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$
*This is a subset of the complete industry portfolio shown later in the “Portfolio of Solutions for Public Sector from SAP ” section.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Public
EXAMPLE: Purchaser order simplificationSAP S/4HANA provides reengineered and simplified business processes that can yield significant benefits. Transform the execution from multistep processes with latency to real-time processes with actionable insights to accelerate the procure-to-pay process.
Traditional ERP
• Multiple screens for document searching
• No preprovisioning of existing documents
• No prefiltering of search results
SAP S/4HANA
• Personalized lists of your specific requisitions
• Preprovisioning of existing purchase orders to facilitate manual purchase order creation
• Restricted list of values to avoid subsequent error in purchase order
Requestor
Personalized requester list
Savepurchase order
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SAP S/4HANA: PUBLIC SECTOR OVERVIEW
Purchase order provisioning on one screen
Startpurchase order creation
Supplier identified?
YES
NO
Search for reference documents used in
past purchases
Provide supplier
Enter and reuse relevant
purchasing data
Enter overview information: validity
dates, type of purchase order,
supplier, and so on
Provide item data step by
step
Save purchase order and work
on errors
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Public
Typical challenges Traditional ERP SAP S/4HANA® enhancements Benefits*
Manual processes extend transaction cycle
times
Searching for existing purchase orders is time
consuming with little prefilled content and
provisioning of existing documents
Consumer-like interface to manage purchase
orders, existing purchase orders, and purchase
info records, which are preprovisioned to
facilitate manual purchase order creation
• Improved transactional procurement FTE productivity and reduced cycle times
• Improved user compliance (spec and vendor)
• Increased tactical sourcing savings (on noncontracted spend)
• Increased collaborative sourcing savings (services spend)
• Continuous improvement in spend under e-procurement
Inconsistent information flow across supply
chain creates fulfillment inefficiencies
User must manually check existing sources of supply, info record, and agreements separately by constantly changing search parameters
Consumer-like interface enables users
to manage purchase requisitions and
automatically proposes available sources of
supply for a specific item with dynamic search
and filtering capabilities
Contract compliance is not applied
consistently
A separate add-on needs to be implemented
on top of ERP to exchange messages with the
Ariba® Network
Business network integration native to
SAP S/4HANA® for purchase order
change, order confirmation, and
advanced shipping notification
Time-consuming and complex process for buyers and suppliers to collaborate
Searching for existing purchase orders is time
consuming with little prefilled content and
provisioning of existing documents
Consumer-like interface to manage purchase
orders, existing purchase orders, and purchase
information records, which are preprovisioned
to facilitate manual purchase order creation
*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA and LoB/cloud capabilities. As each public sector agency is at a different level of maturity, we recommend working with you to determine the v alue proposition for your enterprise.
PROCUREMENT DEEP DIVE
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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Public
EXAMPLE: Portfolio and project management process simplificationSAP® Portfolio and Project Management is all about making decisions about investment mix, matching investments to objectives and aligning them to strategy, allocating the right resources to the right projects and balancing risk against performance.
Traditional ERP
• Multiple entry points with traditional system
• Project-related information is distributed across various ERP applications
• Details are lost due to aggregation and replication
SAP S/4HANA and SAP Portfolio and Project Management
• Live, predictive, real-time insights for better project and program decisions
• Intuitive user experience providing a single, consolidated source of truth for all project-related information
• Real-time access to resource availability and skill sets for better resource utilization
Project/program manager starts with multiple entry points to optimize the project portfolio
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SAP S/4HANA: PUBLIC SECTOR OVERVIEW
Project/program manager
Direct access – real-time, cross-project analysis
Master project cockpit
Integrated components (finance, HR, materials management, and so on)
Traditional systems (finance, HR, materials management, and so on)
Batch
Establish program budget, resources, and milestones
Prioritize project portfolio
Capacity planning and project staffing
Batch
Cross-project and -portfolio optimization
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Public
Typical challenges Traditional ERP SAP S/4HANA® enhancements Benefits*
Inability to prioritize project portfolio
decisions in alignment with government
strategy
Visibility into complete project portfolio, and
investment structure. Planning, progress, roll-
up, analysis, and simulation done in batch runs.
Live tracking of financial project KPIs by
leveraging SAP S/4HANA®, in-memory
technology. and role-specific interface
• Better, faster, and more accurate decision making
• Increased portfolio and project management resource productivity
• Reduced project expenses
• Reduced fines resulting from noncompliance
• Reduced budget overruns
Delayed project milestones; inability to
deviate until it’s too late
Milestone-driven projects along with scheduling give project management operations transparent and accurate view of true project status
Simplified access for project members to
confirm milestones and network activities
Lack of transparency into project resource
demands and allocation leads to project
delays as well as low resource utilization.
Slow access to project and task details
reduces productivity.
Capacity planning, detailed project role
planning, and project staffing in a single
application
Real-time access to resource availability, skill sets, and organizational assignment during project staffing process
Inability to plan project costs and budgets efficiently and track actual versus planned costs lead to budget overruns
Work breakdown structure (WBS) serves as
basis for hierarchical project accounting; actual
project cost and cash-flow visibility by using
multiple applications
Change status of a WBS element easily. Obtain
actual project cost using one integrated
application. Single entry point for project
financial controller.
*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA and LoB/cloud capabilities. As each public sector agency is at a different level of maturity, we recommend working with you to determine the v alue proposition for your enterprise.
PORTFOLIO AND PROJECT MANAGEMENT DEEP DIVE
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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Public
EXAMPLE: Predictive maintenance and service process simplificationSAP Predictive Maintenance and Service provides real-time information of assets based on critical values and trends, thus allowing the most-efficient asset maintenance strategies to manage cost, risk, and performance better.
Traditional ERP
• Time and/or condition-based inspection and maintenance
• Real-time risk of failure and performance are not known
• No optimization of cost, risk, and performance
SAP S/4HANA and SAP Predictive Maintenance and Service
• Trigger maintenance orders just in time, avoiding unnecessary inspections and decreasing cost and risk of unplanned failure
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SAP S/4HANA: PUBLIC SECTOR OVERVIEW
Maintenance scheduled based on real-time asset health status and failure prediction
Asset health monitor
Time-based inspection planning
Inspection Inspection triggers maintenance
Maintenance
Maintenance
IncreaseReturn on assets
IncreaseFirst-time fix rate
ReduceUnplanned asset downtime or outages
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Public
Typical challenges Traditional ERP SAP S/4HANA® enhancements Benefits*
Lack of real-time view into ongoing
maintenance activities and asset
performance indicators hinders timely
decision making
Multitiered landscape consisting additional of
SAP® ERP application component extensions
and business intelligence solutions makes it
challenging to obtain real-time view of
maintenance activities
Real-time view into ongoing maintenance
activities with the ability to reschedule multiple
times a day in order to better plan and
schedule maintenance activities to achieve
higher efficiency
• Increased return on assets
• Decreased unplanned asset downtime or outages
• Improvements in operational efficiency
• Reduced service and maintenance cost
Limited ability to analyze data by machines
and sensors leads to high asset downtime
and increased time to determine the root
cause of failures
Analysis based on past performance and lagging indicators increases time to identify potential activities that can improve asset performance. Sophisticated analytics are disconnected from real-time operational data.
Improved performance of many transactions,
such as scheduling of maintenance plans
Limited ability to share and learn vital best
practices on installation, usage, and
performance of equipment between
different stakeholders hampers asset
performance
Information sharing is only possible through
direct interfaces between individual systems,
which makes it difficult to achieve effective
collaboration among different stakeholders
SAPS/4HANA® integratedwith SAP AssetIntelligence Network
Limited ability to effectively analyze environment, health, and safety (EH&S)data to reduce workplace risk. Inability to develop proactive safety measures leads to EH&S issues.
Analysis is based on past performance, which
limits the ability to proactively drive down
EH&S risk. Data is processed in batches, which
increases the time required to analyze EH&S-
related information.
Embedded analytics based on live data that
help EH&S practitioners act in themoment
*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA and LoB/cloud capabilities. As each public sector agency is at a different level of maturity, we recommend working with you to determine the v alue proposition for your enterprise.
ASSETS AND INFRASTRUCTURE DEEP DIVE
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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Public
EXAMPLE: User experience simplificationSAP S/4HANA enables an anywhere, any-device, mobile-first, role-based user experience that simplifies and enhances employee engagement and productivity, transforming the way work gets done.
Traditional ERP
• Multiple screens and transactions to monitor budget data, commitment actuals, and budget consumption, and approve commitment data
SAP S/4HANA
• Intuitive user experience facilitates decision making with live insights
• Simplified processes help drive efficiency, compliance, and performance
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SAP S/4HANA: PUBLIC SECTOR OVERVIEW
Single point of entry for approval with relevant data for decision making Approval
Budget officerreceives approval request
Reviews high-level aggregated view
Drills down to commitment item level
Looks through legal support documents
Approval
Budget launchpad
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Public
Typical challenges Traditional ERP SAP S/4HANA® enhancements Benefits*
Time-consuming process to control budget
and approve earmarked funds
Various reports and variants are required to
provide required data at a detailed level
Role-specific access to all relevant applications
and tasks on one launchpad
• Better, faster, and more accurate decision making
• Increased budget-responsible productivity thanks to accelerated insight
• Reduced budget overruns
Inability to easily analyze budget availability
for budget object under the responsibility
User needs to know reports, variants, and
budget objects required to provide required
insight on budget availability
Personalized overview of availability and
spending status for all budget objects under
the user’s responsibility; specific areas of the
budget can be set to focus on important
objects
Difficult to manage budget objects with
critical spending and to investigate the
individual reasons to prevent overspending
Various reports and variants are required to
provide required data at a detailed level to
enable the budget responsible to take action
An overview of alerts for budget objects where
budget availability is nearing critical threshold
and simple drill-down to the underlying data by
clicking a tile
No 360-degree view of all relevant
information regarding budget master data
Master data information and transactional data
could only be accessed individually and with
different reports and transactions
360-degree view on budget master data
objects, like funds center combining master
data attributes, relations, and transactional
data in one object page
*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA and LoB/cloud capabilities. As each public sector agency is at a different level of maturity, we recommend working with you to determine the v alue proposition for your enterprise.
PUBLIC SECTOR FINANCE DEEP DIVE
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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Public
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In addition to asset and infrastructure management, asset maintenance, and procurement provided by SAP S/4HANA, the digital core also provides native, prebuilt integration to allow agencies to leverage the entire portfolio of SAP solutions to comprehensively address their needs demanded by today’s digital economy. Processes are designed from the outset to flow end to end across the cloud-based solution extensions, listed in the white bands, and are fully integrated to SAP S/4HANA Enterprise Management and are optionally deployed to address business needs. The solution capabilities in the dark blue band,the digital core, are delivered as part of SAP S/4HANA Enterprise Management. The lighter blue band, also in the digital core, are part of SAP S/4HANA Enterprise Management, but added only as needed.
PORTFOLIO OF SOLUTIONS FOR PUBLIC SECTOR FROM SAP
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Digital Core
Products
Suite
Products
Suite
Enterprise Management
• Constituent engagement• Case management• Inbound/outbound contact center• Constituent self-service
Digital constituent experience
• Constituent experience• Inbound/outbound contact center• Benefit decision making• Grantor management
Service delivery
• Receivables management and payment handling
• Credit and collection management
• Planning, budgeting, and forecasting• Monitoring and reporting• Governance, risk, and compliance for
finance
Budget and financial excellence
• SAP® Fraud Management
• Financial planning and analysis• Accounting and financial close• Treasury management
• Receivables management• Invoice management and
accounts payable
• Taxpayer online services• Collection online services• Debt enforcement
Government funding
• Tax payer identification and processing
• Receivables management and payment handling
• Credit and collection management
• Core human resources and payroll• Time and attendance management • Human capital analytics
HUMAN RESOURCES
• Core human resources and payroll
• Talent management• Time and attendance
management
• Human capital analytics
• Operational purchasing
• Collaborative sourcing and contract mgmt.• Invoice and payables management• Supplier management
• Procurement analytics
PROCUREMENT
• Extended procurement for public sector
• Supplier collaboration• Business network• Guided end-user buying
• External workforce management
• Maintenance and repair • Portfolio and lease management• Space and facility management
ASSET AND INFRASTRUCTURE
• SAP Mobile Asset Management• SAP Predictive Maintenance and
Service• SAP Asset Information Network
• Investment and construction• Portfolio and lease management• Infrastructure strategy and
performance
• Budget maintenance
• Budget execution• Budget and financial closing and reporting• Grantee management
• Cost management• Accounting and closing operations
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Public
Public sector organizations need to manage the end-to-end lifecycle of their infrastructure. This includes detection of risk issues resulting from asset inspections by the mobile workforce or sensor measurements using Internet-of-Things technology. Depending on the risk assessment, this leads to maintenance orders or the setup of capital infrastructure projects. SAP procurement software supports public sector tendering and sourcing of internal or external resources. Externally, open-government policy requires new transparency for constituents, which can be delivered by SAP Hybris® solutions. Internally, integrated and efficient budgeting, project controlling, invoice matching, and payment processing are needed in order to ensure compliant, sustainable government spending in line with planned milestones. Once infrastructure projects are completed, intelligent maintenance plans are generated in order to maximize asset reliability and minimize risk and cost.
Allow internal
and external sourcing according to
government policies
Analyze
previous bids and resulting engage-
ments
Monitor
project progress and control
budget availability
Provide
restricted and open data to
appropriate audience
Plan
maintenance for future operations
Set up capital project
Manage resources and con-tractors
Share project status with constituents
Monitor budget and project
Manage invoicing and pay-ments
Manage maintenance
Match
invoices and initiate payments
according to contractual agreements
Enterprise Management
Digital core
Public Sector Infrastructure Project Management
Send abnormalities for
risk assessmentInform and request feedback
An end-to-end solution for public sector
PORTFOLIO OF SOLUTIONS FOR PUBLIC SECTOR FROM SAP
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Citizen
engagement
Provide
information according to security classifi-
cation. Manage applications, feedback, com-
plaints, and so on
Develop talent
based on needed skills
Detect
infrastructure issues
Manage ongoing
inspections in real time or according to maintenance plan
Talent
supply
Sourcing for
material and services
Leverage talent
networks for flexible capacity
Facilitate sourcing
against material and service providers in line with existing
contracts
Assets, Internet of Things, and mobile workforce
Source and contract
Third-party
labor
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Public
Strategy enablement Business benefits*
• Support new business models• Enable agility for policy and legislation• Reorganize on the fly• Collaborate with other agencies
and external stakeholders• Reduce complexity• Manage risk and ensure compliance
• 30% faster analytics• 5%–10% reduction in business and operations analysis
and reporting costs • 40%–50% reduction in days to close annual books• 20%–40% reduction in G/L and financial closing costs• 20% savings in procurement function cost
Empowered employees IT benefits and TCO
• Establish finance as a partner for strategic decisions
• Empower informed, real-time decision making
• Increase user productivity and user adoption through tailored UIs enabled by the SAP Fiori® user experience (UX)
• Reduce data footprint up to 70%*• Merge online analytical and transaction processing
(OLAP and OLTP)• Eliminate many desktop clients• Lower testing costs• Simplify landscapes• Take advantage of native integration
SAP S/4HANA provides government agencies a proven framework to adopt industry best practices while attaining operational excellence.
Strategy enablement
Business benefits
Empowered employees
IT benefits and TCO
*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA + LoB/cloud capabilities. As each enterprise is at a different level of maturity, we recommend working with you to determine the value propo sition for your enterprise.
SAP S/4HANA: VALUE PROPOSITION FOR PUBLIC SECTOR
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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 16Public
European SchoolsEuropean Schools replaced an outdated and siloed legacy system with a modern, cross-compatible solution to remake the institutional operations of this complex multinational and multilingual organization into a leading integrated operational environment. The cloud-based system running of the SAP HANA® platform reduced logistics and administrative efforts, and improved operational consolidation and transparency. All schools across the organization are accurately aligned with standardized, secure, and integrated financial processes in a comprehensive reporting environment.
“The SAP S/HANA Finance solution empowers our users with more control and drives greater accountability. We have a complete solution that meets all our needs. And SAP HANA Enterprise Cloud means that we did not need to invest in IT staff to maintain the system.”
Kari Kivinen, CEO, Schola Europaea, Office of the Secretary-General of the European Schools
Diakonie Michaelshoven Diakonie Michaelshoven implemented SAP S/4HANA to standardize and streamline structures and processes across the organization and recast departments as internal service providers. Diakonie Michaelshoven was able to make administration faster, simpler, and more cost effective.
“To be ready to take on the future, even social institutions like us – these organizations in particular, in fact – need to be structured to run like a business. That’s exactly why we’ve implemented SAP S/4HANA.”
Uwe Ufer, Commercial Director, Diakonie Michaelshoven e.V.
CompanySchola Europaea, Office of the Secretary-General of theEuropean Schools
IndustryPublic sector – education
SAP solutionsNursery, primary, and secondary education
Customer Web sitewww.eursc.eu
Click here for the source reference
CompanyDiakonie Michaelshoven e.V.
IndustryPublic sector
SAP solutionsSocial services
Customer Web sitewww.diakonie-michaelshoven.de
Click here for the source reference
CUSTOMERS ARE ACHIEVING VALUE FROM SAP S/4HANA
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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 17Public
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