Preface

19

Why Read This Book?

19

Audience

20

Structure of the Book

21

Acknowledgments

23

1 The Digital Transformation: An Introduction

25

1.1 Defining the Digital Transformation

26

1.2 Digital Transformation: A Business Perspective

29

1.3 Digital Transformation: A Technical Perspective

37

1.3.1 Cloud Computing and Services

37

1.3.2 Mobile Solutions and User Experience

39

1.3.3 Internet of Things and Big Data

39

1.3.4 Data Insights and Cognitive Computing

41

1.4 Summary

44

2 SAP S/4HANA and the Digital Enterprise

45

2.1 Evolution of Enterprise Resource Planning Solutions

45

2.2 Business Value Scenarios

53

2.2.1 Customer Centricity and Experience

56

2.2.2 Customer Insight and Improved Decision Making

63

2.2.3 Digitally Enabled Supply Chain

68

2.3 Architecture at a Glance

73

2.4 Summary

77

3 SAP S/4HANA Finance

79

3.1 IBM Chief Financial Officer Surveys

79

3.2 SAP S/4HANA Finance Benefits

84

3.2.1 Integration of Information

85

3.2.2 Enterprise Cost Reductions

89

3.2.3 Measuring Business Performance

90

3.2.4 Optimize Planning, Budgeting, and Forecasting

92

3.2.5 Continuous Finance Process Improvements

93

3.2.6 Provide Inputs to Enterprise Strategy

94

3.2.7 Develop Talent in the Finance Organization

97

3.3 Key Functionalities

99

3.3.1 Universal Journal

99

3.3.2 SAP Material Ledger

103

3.3.3 New Asset Accounting

107

3.3.4 SAP Cash Management

108

3.3.5 SAP BPC for S/4HANA Finance

112

3.3.6 Profitability Analysis

112

3.3.7 Central Finance

118

3.3.8 Real-Time Data and Soft Close

121

3.4 Maturity and Release Restrictions

123

3.5 Business Case

127

3.6 Future Outlook

129

3.7 Summary

131

4 SAP S/4HANA Materials Management and Operations

133

4.1 IBM Chief Supply Chain Officer Survey Findings

134

4.2 Addressing Logistics Pain Points

138

4.2.1 Lack of Supply Chain Visibility

139

4.2.2 Increasing Volatility in Demand and Supply

140

4.2.3 Increased Complexity

142

4.2.4 Lack of Collaboration

143

4.2.5 Lack of Customer-Friendly Interface

144

4.3 Key Functionalities

144

4.3.1 Manufacturing

146

4.3.2 Supply Chain

153

4.3.3 Sourcing and Procurement

166

4.3.4 Sales

173

4.4 Business Case

178

4.4.1 SAP S/4HANA: The Digital Core

178

4.4.2 Manufacturing

180

4.4.3 Supply Chain Management

181

4.4.4 Sourcing and Procurement

183

4.4.5 Sales

184

4.4.6 Summary of SAP S/4HANA Key Benefits for Logistics

186

4.5 Future Outlook

188

4.5.1 Manufacturing

188

4.5.2 Supply Chain

189

4.5.3 Sales

189

4.5.4 Sourcing and Procurement

190

4.6 Summary

191

5 SAP S/4HANA and the SAP Landscape

193

5.1 Sourcing and Procurement: SAP Ariba

194

5.1.1 Sourcing and Contracts

194

5.1.2 Requests and Purchases

196

5.1.3 Invoices and Payments

197

5.1.4 SAP Ariba and SAP S/4HANA

199

5.2 Contingent Workforce Management: SAP Fieldglass

200

5.2.1 Vendor Management System

201

5.2.2 SAP Fieldglass and SAP S/4HANA

203

5.3 Travel and Expense Management: Concur

203

5.3.1 Spend Management

204

5.3.2 Concur and SAP S/4HANA

205

5.4 Human Resources: SAP SuccessFactors

205

5.4.1 Employee Data

206

5.4.2 Talent Management

206

5.4.3 SAP SuccessFactors and SAP S/4HANA

209

5.5 Customer Relationship Management: SAP Hybris

211

5.5.1 Commerce

212

5.5.2 Marketing

213

5.5.3 Billing

215

5.5.4 Sales and Service

217

5.5.5 SAP Hybris and SAP S/4HANA

218

5.6 SAP Master Data Governance

218

5.7 SAP S/4HANA Embedded Analytics

220

5.8 Summary

222

6 SAP S/4HANA Architecture

225

6.1 Typical Issues in Information Technology Landscapes

225

6.2 The Journey from SAP ERP to SAP S/4HANA

227

6.2.1 The Evolution of SAP S/4HANA

227

6.2.2 SAP S/4HANA as the Digital Core

232

6.2.3 The Road Map to SAP S/4HANA and Innovations

234

6.3 SAP HANA Platform

237

6.3.1 SAP HANA Database

238

6.3.2 Virtualization

241

6.3.3 Scalability

245

6.3.4 Recoverability

246

6.3.5 SAP HANA Operations

253

6.3.6 SAP HANA Logical Deployment Options

258

6.3.7 SAP HANA Platform Services

261

6.4 SAP S/4HANA Security

263

6.5 SAP S/4HANA Core Data Models

266

6.6 User Interface and User Experience

267

6.7 Data Lifecycle Management

271

6.8 Summary

272

7 Extending SAP S/4HANA

273

7.1 Future Extension Strategy for SAP Solutions

274

7.1.1 Key User In-App Extensibility

276

7.1.2 Managed Extensibility

277

7.1.3 Classic Extensibility

278

7.1.4 Side-by-Side Extensibility

278

7.2 SAP HANA Cloud Platform

281

7.3 Internet of Things and Cognitive Analytics

285

7.4 Summary

288

8 Deployment Options

289

8.1 Cloud Concepts

289

8.2 SAP S/4HANA Versions

292

8.2.1 SAP S/4HANA, Deployed On-Premise

292

8.2.2 SAP S/4HANA Cloud

299

8.2.3 Hybrid Model

303

8.3 Cloud Vendor

305

8.4 Integration

306

8.5 Summary

308

9 Adopting SAP S/4HANA

309

9.1 New Implementation Options and Approach

311

9.1.1 Business Scenario Recommendations

311

9.1.2 Getting Started

312

9.1.3 Sizing Requirements

313

9.1.4 SAP S/4HANA Implementation Guidelines

313

9.2 System Conversion Options and Approach

315

9.2.1 Scenarios

316

9.2.2 Adoption Paths

316

9.2.3 Tools for System Conversion

319

9.2.4 Code Remediation, HANA-tization, and Optimization

325

9.2.5 Application-Specific Conversion Steps

330

9.3 SAP S/4HANA Conversion Prerequisites

332

9.3.1 SAP S/4HANA Transformation Considerations

332

9.3.2 SAP S/4HANA On-Premise Application Prerequisites

334

9.3.3 SAP S/4HANA On-Premise Functional Restrictions

335

9.4 Housekeeping Activities

341

9.5 System Conversion Considerations

343

9.5.1 Greenfield Implementation

344

9.5.2 Brownfield Implementation

345

9.6 Tools and Techniques for Minimizing Downtime

347

9.6.1 Data Volume Management

347

9.6.2 Optimizing Database Migration Option Performance

348

9.6.3 Near Zero Downtime

349

9.7 Summary

351

10 Using SAP Activate

353

10.1 SAP Activate Overview

353

10.2 SAP Activate Methodology

358

10.2.1 Prepare

359

10.2.2 Explore

359

10.2.3 Realize

361

10.2.4 Deploy

361

10.2.5 Quality Gates

362

10.3 SAP Best Practices for SAP Activate

364

10.4 SAP Activate Tools

367

10.4.1 Self-Service Configuration

368

10.4.2 Expert Configuration

369

10.4.3 SAP Solution Builder Tool

369

10.4.4 SAP Solution Manager

370

10.5 Summary

371

11 Building a Transformation Road Map

373

11.1 Envisioning the “What” and the “Why”

374

11.1.1 Points of View

374

11.1.2 Business Value

380

11.1.3 Making the SAP S/4HANA Case

381

11.2 Developing Your Road Map Using the Open Group Architecture Framework

383

11.2.1 Engage Phase: Analyzing the Current Mode of Operations

386

11.2.2 Envision Phase: Exploring the Target Operation Model

387

11.2.3 Evaluate Phase: A Deep Dive into the Transformation Approach

387

11.2.4 Enable Phase: Build Your Road Map

388

11.3 Understanding the As-Is Current Mode of Operation

388

11.3.1 Pain Points

389

11.3.2 Objectives

390

11.3.3 Approach

390

11.4 Defining the To-Be Future Mode of Operations

391

11.4.1 Considerations

392

11.4.2 Approach

392

11.5 Choosing How to Adopt SAP S/4HANA

394

11.5.1 Evaluate Phase

395

11.5.2 Enable Phase

395

11.6 Summary

396

12 Customer Case Studies

397

12.1 Multinational Industrial Company

397

12.1.1 Vision

399

12.1.2 IT Project

400

12.1.3 Benefits

400

12.1.4 Path Forward

401

12.2 Multinational Service Company

402

12.2.1 Vision

403

12.2.2 IT Project

403

12.2.3 Benefits

403

12.2.4 Path Forward

406

12.3 Water Solutions Manufacturing Company

407

12.3.1 Vision

407

12.3.2 IT Project

408

12.3.3 Benefits

408

12.3.4 Path Forward

409

12.4 Manufacturing Company

409

12.4.1 Vision

410

12.4.2 IT Project

410

12.4.3 Benefits

411

12.4.4 Path Forward

412

12.5 Bakery Products Company

412

12.5.1 Vision

412

12.5.2 IT Project

413

12.5.3 Benefits

414

12.5.4 Path Forward

414

12.6 Summary

414

Appendices

435

A The Authors

435

Index

439