SAP S/4HANA : An Introduction

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Devraj Bardhan,Axel Baumgartl,Asidhara Lahiri, BertSAPNga-Sze Choi, Mark Dudgeon,Meijerink, Andrew Worsley-TonksS/4HANAAn Introduction Rheinwerk

ContentsForeword from UweGrigoleit19Foreword from Cameron Art21Preface231The1.1Digital1.2Business Value ScenariosDigitalTransformation: An IntroductionTransformation and theIntelligent Enterprise2930361.2.1Customerand ally Enabled SupplyandImproved Decision-MakingChain3946501.3Architecture at1.4Deployment Options611.4.1On-Premise611.4.2SAP S/4HANA Cloud681.4.3Model71HybridaGlance561.5Cloud ndustryPain Points and SAP2.1.1Integration2.1.2EnterpriseS/4HANA Benefits79of Information80Cost Reductions822.1.3Measuring2.1.4Optimize Planning, Budgeting,Business Performanceand Forecasting82847

Contents2.22.1.5Continuous Finance Process2.1.6Provide Inputs to2.1.7DevelopImprovementsEnterprise StrategyTalent in the FinanceOrganizationKey Functionalities848687882.2.1Universal Journal2.2.2Material2.2.3New Asset2.2.4Cash Management2.2.5Business2.2.6Group Reporting1092.2.7Profitability Analysis1142.2.8Central Finance1202.2.9Real-Time Data and Soft Close130Ledger88and TransferPricing97AccountingPlanning9398and Consolidation2.3Finance in ndustry Pain3.2Key Manufacturing Functionality3.2.1S/4HANA Cloud102Points and SAPProduct duction3.2.3Material3.2.4Production3.2.5Complex, Discrete,Planningand DetailedSchedulingRequirements PlanningOperationsEngineeringComponent Assembly ManufacturingS/4HANA Cloud1441451511533.3Manufacturing in3.4Outlook1573.5Summary1588SAPandand139154

ContentsChain4Supply4.1Industry4.2Key Supply Chain FunctionalityieiPain Points and SAPS/4HANA Benefits1611651654.2.1Data Model4.2.2Inventory Valuation4.2.3Extended Warehouse4.2.4Transportation Management1844.2.5Catch1874.2.6Quality Management1884.2.7Commodity Management188Simplificationand Advanced Available-to-Promise174ManagementWeight Managementin SAP166S/4HANA Cloud1904.3Supply Chain4.4Outlook1924.5Summary1935Sales, Marketing, Commerce, andService5.1Industry5.2Key5.3Pain Points and SAPSales195S/4HANABenefits199Data Model5.2.2Sales Order Fulfillment and5.2.3Condition Contract t Management and RevenueTradeKey Marketing e Functionality206Relationship Managementand Revenue Management208209Key Service Management Functionality5.4.1Service and Service Master DataOptimized5.4.2Service Parts and Service205ManagementAgreement Management2092109

Contents5.5Sales, Marketing, Commerce, andSAPServiceManagementS/4HANA Cloudin2115.6Outlook2125.7Summary2136Sourcing and6.1Industry6.2Key Sourcing andProcurementPain Points and 86.2.1Operational Purchasing2196.2.2Invoice and224Payables Management6.2.3Sourcingand Contract6.2.4SupplierEvaluation yticsbyProcurement in SAPMachineLearningS/4HANA Cloud2286.3Sourcing and6.4Outlook2316.5Summary2317Research andDevelopmentandAssetManagement7.1IndustryPain Points and SAP7.2Key Research and Development Functionality7.3107.2.1 PS/4HANA386387S/4HANAJourney fromArchitectureSAP ERP to SAP389S/4HANA12.1.1The Evolution of SAPS/4HANA12.1.2SAP S/4HANADigital12.1.3Integration of SAP Products in12.1.4The Road Map to SAP S/4HANA and Innovationsasthe389389CoreSAP396S/4HANA397400SAP HANA Platform40412.2.1SAP HANA 1412.2.4Recoverability41612.2.5SAP HANAOperations42312.2.6SAP HANALogical Deployment Options43112.2.7SAP HANA Platform Services43412.3SAPS/4HANA Security12.4SAPS/4HANA12.5User Interface and User12.6Data12.7Development and Operations44712.8Summary45214437Core Data ModelsExperienceLifecycle Management441442445

Contents13Extensions with the SAP Cloud ting People453and DataCloudBuilding Differentiating13.1.213.1.3Integrate Apps13.1.4Extending455456Appsand Data457Core and Software-as-a-Service Solutions13.2SAP Cloud Platform13.3Extensibility Options453458459for theIntelligent Suite46113.3.1In-App Extensibility46413.3.2Classic46813.3.3Side-by-Side ExtensibilityExtensibility46813.4SAP Cloud Platform and SAP Leonardo47113.5Summary47214SAP Leonardo47314.1The14.2Internet of14.3Machine14.4Blockchain14.5Big14.6SAP Leonardo Use Cases14.7Intelligent Enterprise andSAPLeonardo473ThingsLearning477and Robotic Process 6.1Use Case 1: Consumer14.6.2Use Case 2: Oil and Gas Asset Maintenance forSummaryUpstream Plants49349649915

ur501Adoption Options50315.1.1SAP Readiness Check50315.1.2Business Scenario Recommendations50515.1.3SAP15.1.4SAP Transformation15.1.5Sizing RequirementsNewS/4HANAValue option onversion51615.3.1Adoption Approach51815.3.2Considerations52115.3.3SAP Conversion15.3.4SAP S/4HANA Conversion15.3.5MinimizingS/4HANA Migration CockpitSoftware, Tools, and cape Transformation54715.4.1Adoption Approach54915.4.2Considerations55015.5Housekeeping Activities55115.6Summary55316Implementation Tools55516.1What Is SAP Activate?55516.2SAP Activate .3Realize56416.2.4Deploy56416.2.5Quality Gates56516

Contents16.3SAP Best Practices56616.4SAP Activate t Configuration57116.4.3SAP Solution Builder Tool57116.4.4SAP Solution57216.5SAP Model16.6Summary17Building the570Manager573Company578Business Case579StWBSBSMtlWMSaSSSKSM! S/4HANACommon SAP17.2Value Dimensions58117.3Alignment to Stakeholders and Business Outcomes58317.4Proven Process for58517.517.4.117.4.2Business CaseChallenges17.1Building aCase for580ChangeRecognizethe Need586Frame theOpportunity58717.4.3Conduct17.4.4Assess the Value59117.4.5Validate597Develop Your588DiscoveryProposalIT Road599Map17.5.1Engage Phase:17.5.2Envision Phase:17.5.3Evaluate Phase: A Deep Dive into the Transformation Approach60317.5.4Enable Phase: Build Your Road604Analyzingthe Current Mode ofExploringtheOperationsTarget OperationalMapModel60260217.6Valuable Lessons Learned60417.7Summary60517

Contents18Customer Case Studies60718.1Multinational on60918.1.2IT61018.1.3Benefits61018.1.4Path Forward611ProjectMultinational enefits61318.2.4Path Forward616ProjectManufacturing 61818.3.4Path Forward619Food Industry 118.4.4Path Vision62118.5.2IT62218.5.3Benefits62218.5.4Path Forward623SummaryProject623The Authors625Index62918

Contents 4 SupplyChain iei 4.1 IndustryPainPoints andSAPS/4HANABenefits 161 4.2 KeySupplyChainFunctionality 165 4.2.1 Data ModelSimplification 165 4.2.2 InventoryValuation andAdvancedAvailable-to-Promise 166 4.2.3 ExtendedWarehouseManagement 174 4.2.4 TransportationManagement 184 4.2.5 CatchWeightManagement 187 4.2.6 QualityManagement 188

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