Preface

23

Why Read This Book?

23

Audience

24

Structure of the Book

24

Acknowledgments

27

1 The Digital Transformation: An Introduction

29

1.1 Defining the Digital Transformation

30

1.2 Business Value Scenarios

36

1.2.1 Customer Centricity and Experience

39

1.2.2 Customer Insight and Improved Decision-Making

46

1.2.3 Digitally Enabled Supply Chain

50

1.3 Architecture at a Glance

55

1.4 Summary

60

2 Finance

61

2.1 Industry Pain Points and SAP S/4HANA Benefits

61

2.1.1 Integration of Information

62

2.1.2 Enterprise Cost Reductions

64

2.1.3 Measuring Business Performance

64

2.1.4 Optimize Planning, Budgeting, and Forecasting

66

2.1.5 Continuous Finance Process Improvements

66

2.1.6 Provide Inputs to Enterprise Strategy

67

2.1.7 Develop Talent in the Finance Organization

68

2.2 Key Functionalities

70

2.2.1 Universal Journal

70

2.2.2 Material Ledger and Transfer Pricing

74

2.2.3 New Asset Accounting

78

2.2.4 Cash Management

79

2.2.5 SAP BPC for SAP S/4HANA Finance

82

2.2.6 Profitability Analysis

86

2.2.7 Central Finance

92

2.2.8 Real-Time Data and Soft Close

100

2.3 Outlook

102

2.4 Summary

104

3 Manufacturing

105

3.1 Industry Pain Points and SAP S/4HANA Benefits

105

3.2 Key Manufacturing Functionality

110

3.2.1 MRP Live

110

3.2.2 Product Master Optimization

113

3.2.3 Embedded Production Planning and Detailed Scheduling

114

3.2.4 Complex Manufacturing

115

3.2.5 Demand-Driven MRP

116

3.2.6 General Process Optimization/Simplification

116

3.3 Outlook

118

3.4 Summary

119

4 Supply Chain

121

4.1 Industry Pain Points and SAP S/4HANA Benefits

121

4.2 Key Supply Chain Functionality

125

4.2.1 Data Model Simplification

125

4.2.2 Simplified Inventory Valuation

126

4.2.3 Embedded EWM

127

4.2.4 Transportation Management

135

4.3 Outlook

137

4.4 Summary

138

5 Sales, Marketing, Commerce, and Service Management

139

5.1 Industry Pain Points and SAP S/4HANA Benefits

139

5.2 Key Sales Functionality

142

5.2.1 Data Model Simplification

142

5.2.2 Sales Order Fulfillment Cockpit

144

5.2.3 Condition Contract Settlement

145

5.2.4 Advanced ATP

146

5.2.5 General Process Optimization/Simplification

153

5.3 Key Marketing and Commerce Functionality

154

5.3.1 Customer Relationship Management

155

5.3.2 SAP Billing and Revenue Innovation Management

156

5.4 Key Service Management Functionality

157

5.4.1 Optimized Service and Service Master Data Management

157

5.4.2 Service Parts and Service Agreement Management

158

5.5 Outlook

158

5.6 Summary

159

6 Sourcing and Procurement

161

6.1 Industry Pain Points and SAP S/4HANA Benefits

161

6.2 Key Sourcing and Procurement Functionality

164

6.2.1 Operational Purchasing

164

6.2.2 Invoice and Payables Management

169

6.2.3 Sourcing and Contract Management

170

6.2.4 Supplier Evaluation and Analytics

171

6.3 Outlook

173

6.4 Summary

173

7 Research and Development and Asset Management

175

7.1 Industry Pain Points and SAP S/4HANA Benefits

176

7.2 Key Research and Development Functionality

178

7.2.1 SAP Innovation Management

178

7.2.2 SAP Portfolio and Project Management

179

7.2.3 SAP Commercial Project Management

180

7.2.4 SAP Product Lifecycle Costing

180

7.3 Key Asset Management Functionality

181

7.3.1 Maintenance Planning and Scheduling

181

7.3.2 Maintenance Operation and Execution

182

7.3.3 Mobile Asset Maintenance

182

7.4 Outlook

183

7.5 Summary

185

8 Industry Solutions

187

8.1 Retail

187

8.1.1 Technical Simplifications

188

8.1.2 Available Functionality

190

8.1.3 Removed and Nonstrategic Functionality

192

8.1.4 Retail Integration

193

8.1.5 SAP S/4HANA 1709

193

8.2 Oil & Gas

195

8.2.1 Technical Simplifications

195

8.2.2 Upstream and Downstream

196

8.2.3 Trader’s and Scheduler’s Workbench

198

8.2.4 Transportation and Distribution

199

8.2.5 Secondary Distribution

200

8.2.6 SAP S/4HANA 1709

200

8.3 Summary

201

9 SAP S/4HANA Architecture

203

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

203

9.1.1 The Evolution of SAP S/4HANA

203

9.1.2 SAP S/4HANA as the Digital Core

209

9.1.3 The Roadmap to SAP S/4HANA and Innovations

212

9.2 SAP HANA Platform

216

9.2.1 SAP HANA Database

216

9.2.2 Virtualization

220

9.2.3 Scalability

224

9.2.4 Recoverability

226

9.2.5 SAP HANA Operations

234

9.2.6 SAP HANA Logical Deployment Options

239

9.2.7 SAP HANA Platform Services

242

9.3 SAP S/4HANA Security

245

9.4 SAP S/4HANA Core Data Models

248

9.5 User Interface and User Experience

249

9.6 Data Lifecycle Management

253

9.7 DevOps

254

9.8 Summary

259

10 Deployment Options

261

10.1 Cloud Concepts

261

10.2 SAP S/4HANA Versions

264

10.2.1 On-Premise SAP S/4HANA

264

10.2.2 SAP S/4HANA Cloud

271

10.2.3 Hybrid Model

274

10.3 Cloud Vendor

275

10.4 Integration

277

10.5 Summary

278

11 SAP S/4HANA Cloud

281

11.1 Value Proposition

281

11.2 Current Scope of the Solution

283

11.3 Deployment

284

11.3.1 Fit-to-Standard

285

11.3.2 Deployment Resources

286

11.3.3 SAP Best Practices Explorer

290

11.3.4 Self-Service Configuration User Interface

291

11.4 Extensibility

291

11.5 Content Lifecycle Management

291

11.6 Summary

294

12 Extending SAP S/4HANA

297

12.1 Extensions for SAP

298

12.1.1 Overview

298

12.1.2 In-App Extensibility

301

12.1.3 Side-by-Side Extensibility

303

12.2 SAP Cloud Platform

308

12.3 Internet of Things and Cognitive Analytics

312

12.4 SAP Leonardo and Machine Learning

314

12.5 Summary

319

13 Adopting SAP S/4HANA

321

13.1 New Implementation Options and Approach

323

13.1.1 Business Scenario Recommendations

323

13.1.2 SAP S/4HANA Value Advisor

324

13.1.3 SAP S/4HANA Transformation Navigator

325

13.1.4 Getting Started

326

13.1.5 Sizing Requirements

326

13.1.6 SAP S/4HANA Implementation Guidelines

327

13.2 System Conversion Options and Approach

329

13.2.1 Scenarios

330

13.2.2 Adoption Paths

330

13.2.3 Tools for System Conversion

333

13.2.4 Code Remediation, HANAtization, and Optimization

339

13.2.5 Application-Specific Conversion Steps

344

13.3 SAP S/4HANA Conversion Prerequisites

345

13.3.1 SAP S/4HANA Transformation Considerations

346

13.3.2 SAP S/4HANA Application Prerequisites

347

13.3.3 SAP S/4HANA Functional Restrictions

348

13.4 Housekeeping Activities

354

13.5 System Conversion Considerations

356

13.5.1 Greenfield Implementation

356

13.5.2 Brownfield Implementation

358

13.6 SAP S/4HANA Migration Cockpit

360

13.6.1 On-Premise SAP S/4HANA

361

13.6.2 SAP S/4HANA Cloud

363

13.7 Tools and Techniques for Minimizing Downtime

364

13.7.1 Data Volume Management

365

13.7.2 Optimizing Database Migration Option Performance

365

13.7.3 Near-Zero Downtime

366

13.8 Summary

368

14 Using SAP Activate

369

14.1 SAP Activate Overview

369

14.2 SAP Activate Methodology

374

14.2.1 Prepare

375

14.2.2 Explore

376

14.2.3 Realize

377

14.2.4 Deploy

378

14.2.5 Quality Gates

379

14.3 SAP Best Practices for SAP Activate

380

14.4 SAP Activate Tools

384

14.4.1 Self-Service Configuration

385

14.4.2 Expert Configuration

386

14.4.3 SAP Solution Builder Tool

386

14.4.4 SAP Solution Manager

387

14.5 Summary

387

15 SAP S/4HANA and the SAP Landscape

389

15.1 Sourcing and Procurement: SAP Ariba

390

15.1.1 Sourcing and Contracts

390

15.1.2 Requests and Purchases

392

15.1.3 Invoices and Payments

394

15.1.4 SAP Ariba and SAP S/4HANA

396

15.2 Contingent Workforce Management: SAP Fieldglass

398

15.2.1 Vendor Management System

399

15.2.2 SAP Fieldglass and SAP S/4HANA

400

15.3 Travel and Expense Management: Concur

401

15.3.1 Spend Management

401

15.3.2 Concur and SAP S/4HANA

402

15.4 Human Resources: SAP SuccessFactors

402

15.4.1 Employee Data

403

15.4.2 Talent Management

403

15.4.3 SAP SuccessFactors and SAP S/4HANA

406

15.5 Customer Relationship Management: SAP Hybris

408

15.5.1 Commerce

409

15.5.2 Marketing

410

15.5.3 Revenue and Billing

412

15.5.4 Sales and Service

414

15.5.5 SAP Hybris and SAP S/4HANA

414

15.6 Master Data Management: SAP Master Data Governance

415

15.7 Supply Chain Planning: SAP Integrated Business Planning

417

15.7.1 Sales and Operations Planning

417

15.7.2 Demand Planning

419

15.7.3 Inventory Planning

419

15.7.4 Response and Supply Planning

420

15.7.5 Control Tower

422

15.7.6 SAP IBP and SAP S/4HANA

423

15.8 Summary

423

16 Analytics and Reporting

425

16.1 Evolution of Analytics

426

16.2 Operational Reporting

429

16.2.1 ABAP-Based Reports

430

16.2.2 Embedded Analytics

430

16.2.3 Native SAP HANA Applications

435

16.2.4 Embedded SAP BW and SAP BPC

436

16.3 Enterprise-Wide Reporting

438

16.3.1 SAP HANA Enterprise Analytics

439

16.3.2 SAP Business Warehouse on SAP HANA

439

16.3.3 SAP BW/4HANA

441

16.3.4 SAP Analytics Cloud

442

16.4 Cognitive Analytics

442

16.5 Big Data Analytics and Data Lakes

444

16.5.1 Data Lake

444

16.5.2 SAP Vora

447

16.6 Summary

448

17 Building a Transformation Roadmap

449

17.1 Envisioning the What and the Why

451

17.1.1 Digital Transformation

451

17.1.2 Business Value

458

17.1.3 Making the SAP S/4HANA Case

458

17.2 Developing Your Roadmap

462

17.2.1 Engage Phase: Analyzing the Current Mode of Operations

465

17.2.2 Envision Phase: Exploring the Target Operational Model

466

17.2.3 Evaluate Phase: A Deep Dive into the Transformation Approach

467

17.2.4 Enable Phase: Build Your Roadmap

467

17.3 Understanding the Current Mode of Operations

468

17.3.1 Pain Points

468

17.3.2 Objectives

469

17.3.3 Approach

469

17.4 Defining the Future Mode of Operations

471

17.4.1 Considerations

471

17.4.2 Approach

471

17.5 Choosing How to Adopt SAP S/4HANA

474

17.5.1 Evaluate Phase

474

17.5.2 Enable Phase

475

17.6 Summary

476

18 Customer Case Studies

477

18.1 Multinational Industrial Company

477

18.1.1 Vision

479

18.1.2 IT Project

480

18.1.3 Benefits

480

18.1.4 Path Forward

481

18.2 Multinational Service Company

482

18.2.1 Vision

483

18.2.2 IT Project

483

18.2.3 Benefits

483

18.2.4 Path Forward

486

18.3 Manufacturing Company

486

18.3.1 Vision

487

18.3.2 IT Project

487

18.3.3 Benefits

488

18.3.4 Path Forward

489

18.4 Food Industry Group

489

18.4.1 Vision

489

18.4.2 IT Project

490

18.4.3 Benefits

491

18.4.4 Path Forward

491

18.5 Automotive Company

491

18.5.1 Vision

491

18.5.2 IT Project

492

18.5.3 Benefits

492

18.5.4 Path Forward

492

18.6 Summary

493

Appendices

495

The Authors

495

Index

499