The document discusses how SAP S/4HANA enables the digital core by simplifying the data model, improving the user experience, and enabling new business capabilities. It provides examples of how S/4HANA allows for real-time processing without table locks, continuous soft closes, and instant KPI refreshes. The document also outlines strategies and tactics for adopting S/4HANA through new implementations, system conversions, or landscape transformations.

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Speaker’s Name/Department
Date, 2015
With SAP HCM Cloud Service
and Support
The Digital Core

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WHAT IF IT DID MORE
THAN JUST “KEEP
THE LIGHTS ON”?
WHAT IF IT WAS
THE CATALYST FOR
INNOVATION?
WHAT IF THE IT
DEPARTMENT LED
THE TRANSITION TO
THE DIGITAL CORE?

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Understand How to Make it Happen
HOW DOES SAP S/4HANA
MAKE THE DIGITAL CORE A REALITY?

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How SAP S/4HANA Makes the Digital Core Real
Simpler data model
Improved user
experience
New business capability
Improved productivity
+ =
Unified data model
eliminates FI-CO batch
reconciliation
Drill down to detail
and KPI “cockpit”
Continuous soft close+ =
Transactions run without
table locks
Instantly-refreshed
KPI’s
Reduced processing time
and carrier fees+ =
Examples

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What Does it Mean to Simplify?
AN ANALOGY: SENDING A PHOTOGRAPH TO SOMEONE FAR AWAY
Camera Film Darkroom Paper Postal Service Recipient Complicated and with enormous
resource expenditure. Individual
components were eventually
sped-up to get the end-to-end
process to one day minimum.
“Camera” Internet Recipient Not merely faster—the
“architecture” is reduced. As a
result, the process happens
instantly and can be done any
time and in different ways for a
fraction of the cost.
Simpler
Data Model

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Simpler Data Model: Inventory Management Example
On the fly aggregation
MATDOC
Material Document
Master data without Stock aggregates
MARC MARD
Aggregates
MSTQ
MSTE
MSTB
MSSQ
MSSA
MSPR
MSLB
MSKU
MSKA
MKOL
MCHB
MSTQH
MSTEH
MSTBH
MSSQH
MSSAH
MSPRH
MSLBH
MSKUH
MSKAH
MKOLH
MCHBH
History Document
MARDH
MARCH
MKPF
MSEG
Inventory movements
Material Master
Master data with
Stock aggregates
MARC MARD
MARCH MARDH
Master
data
Transactional
data
26 aggregate
tables
Simpler
Data Model
Traditional disk-based ERP In-memory ERP

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Simpler Data Model Impact
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TECHNOLOGY
• No aggregates or redundant data
• No locking
• Full granularity for all processes
CAPABILITY
• Operations in real time
• Elimination of data reconciliation
• More precision
• Basis for simulations and predictions
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Simpler
Data Model

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Improved
User Experience
A Digital Interface for a Digital World
FROM THE PAST… …TO THE PRESENT

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Example: Soft Financial Close Anytime
Traditional System With SAP S/4HANA
Traditional With SAP S/4HANA
Process Excellence
User
Interaction
Ad Hoc
With traditional system:
 Close activities that don’t begin until period end
 Multiple batch-run dependencies
 Batch bottlenecks that delay downstream activities
 High error-correction efforts
 Complex issues that are postponed until after close
 Time-pressured resolutions
 Delayed visibility into reporting
With SAP S/4HANA
 Real-time system with key performance indicators (KPIs) instantly refreshed
 Elimination of end-of-period batch bottlenecks
 Continuous intercompany reconciliation
 Continuous financial reporting visibility
 Profitability analysis and line-item detail reconciliation
 Automation for routine tasks
 Full management visibility of close tasks
Initial period Close and consolidation
Close
batches
Consolidation
batches
Reporting on demand
Close and consolidationInitial period
New
Capabilities

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Example: Post Goods Issue (PGI)
BUSINESS CHALLENGES
• The client’s facilities run 24/7 including high-volume, small lot size shipping transactions
• Materials are shared across plants and multiple shipments are frequently
executed in parallel
• Experiencing instances where PGI failed because the material data (batch stock)
was locked:
• Goods movement is posted
• Quantity on hand is updated in aggregation tables
• Delays trying to post goods issue while the truck driver is waiting
RESOLUTION IN ECC 6.0
• Repeat attempts to post PGI until there is no lock
• Reschedule background jobs for PGI
• Rethink batch strategy for materials
• Identify SAP Basic changes to reduce number of locks
RESOLUTION IN SAP S/4HANA
The Batch Stock tables no longer exist. Only the material movement
needs to be created without regard for the actual stock level.
Transactions can be run in parallel without table locks.
Reduced transaction
processing time
No carrier
detention fees
Reduced risk of users
working around the system
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New
Capabilities

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Reduced IT Complexity
on HANA S/4HANATraditional DB
593 GB
118.6 GB
42.4 GB
Current
8.4 GB
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IMPACT ON IT LANDSCAPES:
• Reduced storage
• Less replication
• Less network load
• Faster restart after failover
New
Capabilities
Example with Finance data

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Landscape Consolidation Example
Sales and Service
Commerce
Customer
Supply Chain
Planning
Execution
Sourcing
Procurement
SRM
ERP
Legacy RDBMS
BW
Operational
Reporting
New
Capabilities
Use in slide show mode for animation
SAP HANA Platform

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Industry Solutions Consolidation
ERPERP
High Tech Retail High Tech
Retail
Legacy RDBMS Legacy RDBMS SAP HANA
New
Capabilities

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1610 Release Highlights
• SAP Fiori 2.0 UX
• Core innovations across the product,
especially Finance and Supply Chain
• Central Finance
• Integrated Extended Warehouse Management
• Production Planning & Detailed Scheduling
(PPDS)
• Advanced Available to Promise
• Integrated Quality Management
• Many others
• More industry support: Oil & Gas,
Retail
• Embedded MDG and Analytics

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Understand How to Make it Happen
HOW DO I PLAN FOR
SAP S/4HANA ADOPTION?

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Strategy and Tactics of SAP S/4HANA Adoption
“TACTICS IS KNOWING WHAT TO DO
WHEN THERE IS SOMETHING TO DO.
STRATEGY IS KNOWING WHAT TO DO
WHEN THERE IS NOTHING TO DO.”
Savielly Tartakower
Chess Grand Master
1887-1956
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If you are not sure what to do next with SAP S/4HANA, there are several strategies you can employ today

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SAP S/4HANA Strategy and Tactics
STRATEGY TACTICS
Engage the Line of Business • Planning workshops
• Rapid prototypes
• Connect with use cases
Engage user community • Rapid prototypes
• User Assistance Technology
• Mobile
Rationalize customizations • Inventory tools
• Simplification DB
• CDS views
• Key user extensibility
• HCP
New implementation • Cloud offerings to accelerate
• Data Integration (HCI)
System conversion • 1511 version for entire suite
• Finance only
• Bridge with Suite on Hana
Landscape transformation • Incremental adoption with Central Finance
Can start today
Strategies for the
actual deployment
New deployment
landing page

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New
Implementation
System
Conversion
Landscape
Transformation
SAP S/4HANA Adoption Paths
EXAMPLE:
New or existing SAP Customer
implementing a new SAP S/4HANA
system with initial data load
EXAMPLE:
Complete conversion of an existing
SAP Business Suite system or selective
EXAMPLE:
Central Finance
On-Premise
S/4Cloud
On-Premise
On-Premise
S/4Cloud
ERP System
ERP System
ERP System
Region A
ERP System
Region B
ERP System
Region C
Non-SAP
System
SAP S/4HANA

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Complete Choice of Deployment
SCOPE CUSTOMIZATION MAINTENANCE LICENSING
Enterprise
Management Cloud
Essentials Extensions only SAP Subscription
Enterprise
Management Cloud,
Private Option
Full ERP
Extensions,
configuration
Shared Subscription
HANA Enterprise
Cloud
Full ERP Unlimited Shared Traditional
On Premise Full ERP Unlimited Customer Traditional

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Easing the Transition
WHAT HAPPENS TO MY
CUSTOMIZATIONS WITH THE
SIMPLIFIED DATA MODEL?
Backward compatibility
• Core Data Services
• SAP GUI
Leveraging new capability
• Simplification DB
• Key User Extensibility
Fiori Shell
S/4 HANA
ABAP
HANA
Core Data Services View
Suite Tables
Transactional Logic Analytic Engine (Enterprise-)Search
Fiori
Apps,
ALV
(U15)
Design
Studio
Analysis
App
Search
Gateway
RR R
RRR
R R
OData InA InA

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New Install
Migrate Existing
Major Milestones in SAP S/4HANA Adoption
PREPARE EXPLORE REALIZE / DEPLOY
All Implementation
Scenarios
Dependent on
Implementation
Scenarios
Implement
additional industry
/ LOB packages
Value Discovery
Workshop
System Conversion
Technology driven migration offering
Landscape Transformation
Business driven migration offerings
New Implementation
On S/4HANA on premise and cloud
Implement new
Innovations
Installation and data
transition for SAP
Leverage SAP Digital Business Services or Partner Ecosystem
Strategy &
Roadmap
Technical
Architecture
& Migration
Planning

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Next Steps
HOW CAN I LEARN MORE?
WWW.SAP.COM/S4HANA

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Speaker’s Name/Department
Date, 2015
With SAP HCM Cloud Service
and Support