The Digital Core

Noèlia Soleres, Solution Expert

PUBLIC
• 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:
Part 1: How does SAP S/4HANA Make the Digital Core a Reality?
How SAP S/4HANA Makes the Digital Core Real

Improved user New business capability

Simpler data model + experience = Improved productivity

Complete choice of deployment

Common themes
All improvements and capabilities in SAP
• Unification of disparate data sources
S/4HANA can be explained by at least
one component of this formula • Drill down to detail
• Landscape consolidation

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 Simpler
What Does it Mean to Simplify? Data Model

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.

Not merely faster—the

“Camera” Internet Recipient
“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.

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 Simpler
Simpler Data Model: Inventory Management Example Data Model

Traditional disk-based ERP In-memory ERP

Aggregates History Document

MSTQ MSLB MSTQH MSLBH MKPF

On the fly aggregation

MSTE MSKU MSTEH MSKUH MSEG

Inventory movements
MSTB MSKA MSTBH MSKAH

Material Master MATDOC

MSSQ MKOL MSSQH MKOLH Master data with Material Document
Stock aggregates

MSSA MCHB MSSAH MCHBH

MARC MARD
Master data without Stock aggregates
MSPR MSPRH MARDH

MARC MARD
MARCH MARDH
MARCH
Master Transactional 26 aggregate
data data tables

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 Simpler
Simpler Data Model Impact Data Model

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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 Improved
A Digital Interface for a Digital World User Experience

From the Past… …To the Present

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 New
Example: Soft Financial Close Anytime Capabilities

With Traditional System Close

batches
Consolidation
batches
With SAP S/4HANA
Reporting on demand

Initial period Close and consolidation Initial period Close and consolidation

With Traditional System With SAP S/4HANA

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

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 New
Reduced IT Complexity Capabilities

Impact on IT Landscapes
• Reduced storage
• Less replication
• Less network load
• Faster restart after failover

Example with Finance data

Traditional DB on HANA S/4HANA Current

593 GB
118.6 GB
42.4 GB
8.4 GB

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 New
Landscape Consolidation Example Capabilities

Sales and Service Supply Chain Sourcing

Use in slide show mode for animation

Commerce Planning Procurement BW

Operational
Reporting
Customer Execution SRM

ERP

SAP HANA
Legacy Platform
RDBMS

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 New
Industry Solutions Consolidation Capabilities

ERP ERP

Discrete Industries Retail Discrete Industries Retail

Legacy RDBMS Legacy RDBMS SAP HANA

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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:
Part 2: How Do I Plan for SAP S/4HANA Adoption?
SAP S/4HANA Deployment Strategy Overview
Items marked with * can be started immediately

Prepare users and systems Determine the transition path

• Readiness Check* • Greenfield (new implementation)
• Business Value Advisor* • Brownfield (conversion)
• Prototypes* • Landscape transformation

Adapt custom code Choose deployment destination

• Assess custom code inventory* • On premise
• Address inefficiencies* • Cloud
• Adapt code to S/4HANA • Hybrid/multi-tier

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SAP S/4HANA Adoption Paths

EXAMPLE:
On-Premise
New Non-SAP New or existing SAP Customer
Implementation ERP System implementing a new SAP S/4HANA
S/4Cloud system with initial data load

EXAMPLE:
System ERP System On-Premise
Conversion Complete conversion of an existing
SAP S/4HANA SAP Business Suite system or selective

ERP System
Region A On-Premise
EXAMPLE:
Landscape ERP System
Transformation Region B Central Finance
ERP System S/4Cloud
Region C

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Complete Choice of Deployment

SAP S/4HANA offers complete choice of

deployment on premise or cloud.
All editions are designed for in-memory, with
the same simplified data model and improved
user experience for consistency at every
level of your enterprise.

Important Considerations:
• Scope of business functionality
• Deployment times
• Update frequency
• Customizations
• Regulatory, industry, and regional requirements

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Easing the Transition

What Happens to My Customizations Fiori Shell

with the Simplified Data Model? Fiori Apps, Design Studio
Search
ALV (U15) Analysis App

Backward compatibility
• Core Data Services OData R InA R InA R

• SAP GUI
SAP S/4HANA Gateway

Leveraging new capability ABAP

R R

• Simplification DB Transactional Logic Analytic Engine (Enterprise-)Search

• Key User Extensibility
R R R

Core Data Services View

HANA

Suite Tables

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Major Milestones in SAP S/4HANA Adoption

PREPARE EXPLORE REALIZE / DEPLOY

All Implementation Dependent on Migrate Existing

Scenarios Implementation
Scenarios
System Conversion
Technology driven migration offering

Strategy &
Roadmap
Landscape Transformation Implement new
Implement
Value Discovery Business driven migration offerings
Innovations
additional industry
Workshop Installation and data
Technical / LOB packages
transition for SAP
Architecture
& Migration
Planning New Install

New Implementation
On S/4HANA on premise and cloud

Leverage SAP Digital Business Services or Partner Ecosystem

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How Can I Learn More?
www.sap.com/s4next
 Thank
THANK You
YOU

93 483 35 00 @Noebarna

Noelia Soleres noelia.soleres@sap.com

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