Unit 8: SAP S/4HANA fueling

the Digital Transformation

SAP S/4HANA fueling the Digital Transformation

Radical Simplification Is Needed to Unlock the Potential

28%

Drive business
innovation
Drive business
innovation

Keep the
lights on

72%

Consumption
For immediate business impact

User Experience
Engage front line employees/customers

IT Environment

Keep the
lights on

Collapse redundant infrastructure layers

Forrester IT Survey, 2013

70%

50%

say complexity is
increasing costs

are unsure who

is accountable

Bain 2005 Survey

Economist 2010

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40%

90%

worry whether
their organization
can keep pace

say business
is growing
more complex

McKinsey Study 2013

Economist 2010
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SAP S/4HANA fueling the Digital Transformation

The Building Blocks of Digital Transformation

Cloud

Data

Mobile

Simplicity

Predictive Insights

Time to
Value

New Product
Strategies

Adaptability for the

21st Century
Workforce

Speed to
Innovation

Customer
Engagement

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Everything doable
from Anywhere

Networks

Hyperconnectivity
Digital communities

Social Sollaboration
Collaborating beyond
Enterprise
Boundaries
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SAP S/4HANA fueling the Digital Transformation

What companies need to achieve
based on disruptive
technology to gain
higher competitiveness

Cloud

Data

Networks

Mobile

Business
Outcome

Business Outcome and

Competitiveness
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Technology-Driven
Disruption
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SAP S/4HANA fueling the Digital Transformation

The Innovation Adoption Model
Transformational
Level

Business
Impact

NEW BUSINESS
MODELS

Business Innovation
New customers
New markets

Improved
PRODUCTS

Optimize products
Offer new products/services

Improved
PROCESSES

Improve single processes

Replace single processes
Change end to end processes

Improved
DECISIONS

Transparency
Decision support
Decision automation

Technical
SOLUTION

Velocity

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Business
Model

Business
Processes
NEW

NEW

NEW

OLD
OLD

NEW

OLD

Business
Outcome

OLD

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SAP S/4HANA fueling the Digital Transformation

The Innovation Adoption Model

from Push
Static
Aggregation

FI Postings

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Customers

Products

Profit Centers

Suppliers

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SAP S/4HANA fueling the Digital Transformation

The Innovation Adoption Model

to Pull
On-the-fly
Aggregation

Lowest Level
of Granularity
FI Postings

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Customers

Products

Profit Centers

Suppliers

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SAP S/4HANA fueling the Digital Transformation

The Innovation Adoption Model

Business Processes
Transactional Data
External Data
Business Networks
Structured and Unstructured

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SAP S/4HANA fueling the Digital Transformation

Result: Systems of Engagements and System of Records combined

Systems of Engagement Effectiveness - Do the right things

Engage Business
Workers - middle of
the organization

focus on business tasks

collaborate and communicate

Connecting people in real time
Leverage Structured and Unstructured Data

Systems of Records Efficiency - Do the things right

Support Frontline
Workers Keep
business running

Information Highway
Single Source of Truth
Data Processing of structured data
Used within company boundaries

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SAP S/4HANA fueling the Digital Transformation

Examples for Business Benefits

>65%

Service improves

10x

business processes

Faster Scenario Running in

Material Related Planning (MRP)

Content enhances

5x

business processes

Data Storage Reduction in

Material Related Planning (MRP)

1,000x

Content changes

Faster reporting
(from 15 minutes to 1 second)

business processes

Increased throughput with

Optimization of Inventory
Management and Valuation

Simple Finance

Internet of Services

Simple Logistics

Faster financial close processes

>50%
Faster foreign currency revaluation

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SAP S/4HANA fueling the Digital Transformation

Examples for Simple Logistics and Manufacturing
Increased user productivity

Real-time decision support

Intuitive

personalization
allows tailoring of the app
to individual work-styles

Provides

pre-evaluated
solution proposals

Enables

the simulation of
every proposal before applying
it

KPIs

are constantly
recalculated and refreshed

Flexible

rules (shortage
definitions)

Allows

manual adjustment of
proposals

1-click

Improved customer service levels

Complex

applications
(ATP, Backorder
Processing) are
executed directly in
HANA

Always

up-to-date view
on demand-/ supplysituation across all
BOM levels

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Minimized exception handling

The

MRP
Planner gets
the latest
information in
real-time

Intuitive

execution of a solution
Dramatically simplified data model

All aggregates and

history tables (24 in
total) dropped

Smaller data footprint,

no locking

Process & data

redundancies
eliminated

High speed evaluations

graphics for
faster insights

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SAP S/4HANA fueling the Digital Transformation

Customer Co-Innovation Program: Simplification Involves a Paradigm Shift

Engagement
Influence

Co-Innovation activities are

designed to meet customer
bandwidth and priorities

Level 3
Design*

Level 2
Review*

Level 1
Advise

Time commitment / influence

* = Internal & external customers, partner, prospects and influencers

End-User and Line of Business

- Professionals are a prerequisite for success

Time
Commitment

Invitation to customers, partners and influencers to contribute:

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Discover

Further information:
Homepage: sap.com/S4HANA
Next openSAP course: SAP Business Suite 4 SAP HANA Deep Dive
Co-Innovation: S4HANA-CoInnovation@sap.com

Thank you

Contact information:
open@sap.com

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