ASUG WebCast Innovation Roadmap v01

Version 1.
2 (20160601)
Define Your Innovation Roadmap

Transition Paths for Digital Transformation
Gunther Schmalzhaf IT-Planning Architect, DBS
December 6, 2016
Disclaimer
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All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially
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as of their dates, and they should not be relied upon in making purchasing decisions.
2016 SAP SE or an SAP affiliate company. All rights reserved.
Public
Agenda
A strategy for a roadmap creation

Approach for and E2E platform architecture definition
A methodology for implementation and

conversion
Methodology to find best implementation strategy
with an example of 3 regional ERP systems
consolidated into one SAP S/4HANA
An assessment for deployment and

integration options
Along a CRM and hybris Marketing (yMark)
example a deployment and integration model is
defined
A future approach for reporting and planning

Based on a analytic solution example, which option
to use for the different planning and reporting use
cases
A definition of a potential HANA based

infrastructure platform
Architect a scalable and dynamic private cloud
infrastructure platform
Public
Strategy and Roadmap

Approach for and E2E platform architecture definition
Public
Define a target architecture what is the input?

Outside - In
Evaluate and apply which industry and technology
trends provide value for company specific strategy
Acquire innovation via application of market available
reference architectures
1 of 2
OUTSIDE IN
Target architecture definition
Industry & Technology Trends

Reference Architectures
Reimagine Business
Models
Reimagine
Business Processes
Reimagine
Work
TARGET ARCHITECTURE
Solution Architecture
Platform Architecture
Requirements from internal business teams

Already known pain points of current architecture
Further development of current available IT-strategy
INSIDE OUT
Inside - Out
Known business
requirements
Pain points of current

architecture
IT Strategy
Gains & Pains
Public

Target architecture definition
2 of 2
Innovation Roadmap
Define strategic objectives mapped to benefit areas

(gains & pain)
Identify and prioritize enablers (e.g. solutions or
platform components)
Benchmark with industry reference architecture.
Derive a target enterprise architecture (high-level

business / application and platform)
Develop a multi-year roadmap describing the
stepwise migration, driven by complexity and benefit
Value Potential
Innovation Portfolio Matrix
Ease of Implementation
Public

Initial and target landscape of our example customer
Initial system landscape example
Target landscape
Three regional ERP systems and BW systems

Global applications: BW/BPC, CRM, SRM, SCM,
HR in SuccessFactors and Travel Mgmt. in Concur
Regional systems consolidated into one global

ERP transitioned to SAP S/4HANA
Additional SAAS cloud usage
Success
Factors
BO
Success
Factors
Concur
BW/BPC
SRM
ERP 1
BW 1
FES/Fiori
BO
Cloud
IBP
Response
S&OP
S&OP
Demand
SLT
SAP S/4HANA
ERP 2
BW 2
CRM
yMark
CRM
Concur
SCM
ERP 3
Sourcing & Procurement

Advanced ATP
BW 3
EDW
Embedded Analytics
MRP / PPDS
Public

Develop a Transformation Roadmap
This year
foundation and quick wins
Next year
optimize and standardize
Two years from now

grow and innovate
3+ years
Customer
Relationship
ERP
When migrating to SAP S/4HANA, new possibilities may change the

view on procurement, financials, order to cash and other functionality.
This track will exemplify what these considerations can mean.
Outside in approach: Based on the example of

hybris marketing, we analyze how to approach the
inclusion of new on-premise and cloud applications.
Inside out approach: Reporting

and planning can be re-visited
based on the new capabilities
Reporting / Planning
Platform and Technology shows possibilities

for technical system landscape consolidation
and the impacts on integration.
Platform / Technology Projects

Public
ERP Strategy
From ERP to SAP S/4HANA: A methodology for implementation and conversion
Public
Considerations for the ERP Strategy

SAP S/4HANA evaluation
Example: From three regional ERPs and BWs to
one global SAP S/4HANA
Achieve global process harmonization
Benefit from new capabilities in SAP S/4HANA
Embedded Analytics for operational reporting (no more
regional BW)
BPC Optimized is an embedded BW structure in SAP
S/4HANA and supports financial planning and
consolidation on the operational data
Self-service procurement which also existed in SAP SRM.
Production Planning and Detailed Scheduling known from
SAP APO
In future: EWM co-deployment possible (if global and not
business-critical) and Advanced ATP (comparable to
global ATP check in SCM)
Initial ERP
systems
ERP 1
BW 1
Target ERP
system
SAP S/4HANA
Embedded Analytics
ERP 2
BW 2
Sourcing & Procurement

Advanced ATP
MRP / PPDS
ERP 3
BW 3
Public
10

Transition approach: Conversion or new implementation
Considerations for migrating from SAP ERP to SAP S/4HANA
General remarks
The majority of functionality will work as before - adjustments are required on application level and for custom
code
Application-level interfaces should work as before
SAP GUI generally works as before - SAP Fiori will be the UI of choice for new functionality
Business processes can be integrated over time into SAP S/4HANA
Conversion vs. New implementation

Default: system conversion
Consideration: current solution too
complex or desire back to standard.
Exception: new implementation based on
existing template
Default: System
Conversion
New implementation
Greenfield/Model Company
New implementation
Reuse Existing Template
Assumption:
Solution largely fits to
current business
needs, and
No requirement for
complete reimplementation
Condition:
Current solution is too
complex or does not fit
anymore to the business
needs, and
Strong desire to reimplement and go back
to standard
Special conditions:
Example:
Solution largely fits to
business needs, but
huge amount of data
from divestitures
remains in the system
Public
11

Sequencing of activities
General conversion options
Key decision drivers
ERP S/4HANA
ERP SoH S/4HANA
ERP SoH finance add-on S/4HANA
Criteria
Weighing of business requirements / benefits vs. time-to-value

System-specific transition risks and risk mitigation options
Project dependencies
Initial required updates/upgrades, HANA migration, need for
conversion of some tables, fields, and custom coding
1. Option:
One Step Conversion to SAP S/4HANA
2. Option:
First Project: Migration to SAP HANA
Second Project: Conversion to SAP S/4HANA
Time to Value
Faster on target solution which offers: SAP S/4HANA

analytics, higher throughput, new Accounting, new
MRP, SAP Fiori, industry functionality,
Fast on first stepping stone (SAP HANA) which offers: performance,

SAP HANA Live, some SAP Fiori,
Longer time to get to target solution.
Transition
Costs
Overall lowest costs as only one large project with one

time business testing,
Higher costs due to two large projects with each their own testing,
Risk of unnecessary/throwaway effort
Transition
Risks and
Impacts
Higher project complexity

Potentially longer downtime
Lower project complexity

Two potentially long downtimes
Potentially higher risk because of less testing focus
Public
12

Key decision drivers for a system consolidation approach
Consolidation options:
Current solution vs.

required future business
processes
How well do the current system
fit to the planned target
1. Consolidate all (including historical

data) into one single ERP system
and convert this system to SAP
S/4HANA
2. Migrate one system to SAP
S/4HANA (driving region) migrate data master data, open
items and balance of others
3. New implementation of S/4HANA
system, then migrate master data,
open items and balance from the
legacy ERP systems
Migration strategy of
historical data
How much historical data
is needed in the target
Public
13

ERP landscape consolidation approach
Migration of historical data
Delta of current solution vs. future business process

Solution of all systems Solution has or very Solution has good fit
has very good fit
good fit for 1 system of 1 system,
adjustments needed
Solution does not fit

to any system
Open items /
balances sufficient
Selective migration
of historical data
Complete historical
data for one system
Complete historical
data for all systems
Consolidation options
System consolidation 1
of source systems, then
conversion to S/4HANA
System conversion
of one system to
S/4HANA, then data
migration for other
systems
New S/4HANA system 3

implementation based
on existing template
New S/4HANA system

implementation with
model company
Decision:
Option 2, as one region
represents about 60% of
the global business and
fits well to current and
future business need.
Public
14

Develop a Transformation Map
This year
ERP
Finance
Universal F1
journal S/4
Supply Chain
Planning
Procure to Pay
IBP S2
IBP S1
Demand
Response
Shopping
P1 Cart S/4
Next year
F2
IBP S3
Supply
Financial
planning S/4
F3
Two years from now

grow and innovate
Financial
consolidation S/4
3+ years
P2
Ariba NW
S4 PP/DS S/4
O1
aATP S/4
E6
Decommission
SRM & SCM
Order to Cash
Customer
Relationship
Import
balances of
E5 ERP3 to S/4
New Fiori
FES
E2
ERP1
to S/4 E1
E4 Import balances
of ERP2 to S/4
E3
S/4
Analytics

Public
15
Customer Relationship
CRM and hybris Marketing: Assessment of deployment and integration
Public
Considerations for Customer Relationship Strategy

Introduction
Example: Existing CRM system shall benefit from Hybris Marketing application
General questions and remarks for customer relationship track
Does a migration to SAP S/4HANA impact SAP CRM?
SAP S/4HANA does not come with CRM functionality, but integrates with SAP CRM (on-premise)
Migrating an SAP ERP to SAP S/4HANA (On-Premise) will not break integrations
to existing SAP CRM
Current SAP CRM
Activity management
Lead management
Opportunity management
Interaction Center
Claims management
Moved to hybris Marketing based on SAP HANA

SAP hybris Marketing is the SAP S/4HANA simplification for SAP CRM
marketing: HANA optimized & simplified data model, HTML5 UI.
Campaign management
Segmentation
Loyalty management
Public
17

Introducing with yMarketing a new application and integration with other systems
hybris Marketing capabilities
Marketing Data Management, Segmentation,
Recommendations, Campaign Management capabilities
and others.
Most often used today is customer segmentation,
marketing data management.
Designing (dynamic) target group by checking on
previous customer activities or sentiment analysis from
social media are other highlights
Integration platforms
yMkt
DS
Data integration
into yMarketing
SocMedia
e.g. social media:
unknown people
SLT
SAP
S/4HANA
e.g. accounts,
billing
CRM
e.g. known
customers, leads
BW
historic data of
any provenance
SAP System Landscape Transformation Replication (SLT):

Replicates SAP data from one database to the other thus bypassing the application tier
SAP Data Services (DS):
Can be used for non-SAP data replication, third-party cloud solutions, third-party on-premise solutions
Public
19

On-Premise or in the Cloud
yMarketing considerations
Business perspective: SAP continuously extends functional scope of
yMarketing cloud offering
Cloud deployment requires data replication
yMkt (SaaS)
HCI
Public cloud
Customer datacenter
PO (altern.)
Replication solutions of choice

HANA Cloud Integration (HCI)
Cloud-based multi-tenant technology for real-time process integration and
data integration
SAP Process Orchestration (PO)
On-premise solution based on SAP NetWeaver for process integration and
data integration
When do customers prefer HCI to PO?
SAP NetWeaver PO not in use today and no on premise installation planned
The planned integration scenarios include cloud to cloud
SAP
S/4HANA
CRM
BW
yMarketing Cloud deployment
yMkt
SLT
SAP
S/4HANA
CRM
BW
yMarketing On-premise deployment

Public
20

Deployment options SAP hybris Marketing
Side-by-side
Co-deployed with BW**
Co-deployed with business system*
SAP
S/4HANA
CRM
yMkt
CRM
SAP
S/4HANA
yMkt
CRM
SAP
S/4HANA
yMkt
BW
AS ABAP
AS ABAP
AS ABAP
AS ABAP
AS ABAP
AS ABAP
AS ABAP
AS ABAP
AS ABAP
AS ABAP
SAP HANA
DB
SAP HANA
DB
DB
SAP HANA
yMarketing requires a singlenode deployment
SAP HANASAP HANA
OR
SAP
S/4HANA
CRM
yMkt
AS ABAP
AS ABAP
AS ABAP
SAP HANA
SAP HANA SAP HANA
*White listed, multiple components in one database.
**White listed, multiple components in one database (MCOD). yMarketing must be on own HANA node.
SAP HANA
Considerations
Does the deployment choice significantly
impact capacity?
Which deployment offers highest potential for
landscape harmonization?
Which deployment reduces data replication

the most?
Public
21

This year
ERP
Finance
Next year
Universal F1
journal S/4
Supply Chain
Planning
Procure to Pay
F2
IBP S2
IBP S1
Demand
Response
Shopping
P1 Cart S/4
O1
Financial
consolidation S/4
P2
Ariba NW
aATP S/4
M1
E6
Decommission
SRM & SCM
yMarketing
Import
balances of
E5 ERP3 to S/4
New Fiori
FES
E2
ERP1
to S/4 E1
F3
3+ years
S4 PP/DS S/4
Online
R1
Reporting CRM
on HANA
Customer
Relationship
Order to Cash
IBP S3
Supply
Financial
planning S/4
Two years from now

grow and innovate
E4 Import balances
of ERP2 to S/4
E3
S/4
Analytics
Co-deploy
yMarketing
with CRM on
C3 HANA
C2 Install SLT
& DS
C1 CRM
conversion to
HANA

Public
23
Reporting and Planning

Reporting and planning in SAP S/4HANA, BPC and BW
Public
Considerations for Reporting and Planning

Introduction
Example: Todays analytic platform situation
Global reporting and planning
One global BW that combines data from CRM, SRM,
GTS, SCM, TM, and external sources
Multiple data sources, single version of truth with
common semantics. Global BW is used for planning
and reporting
Combination of current and historical data
Business Intelligence used for dashboards
Business Planning and Consolidation takes place in
in BW
Global Reporting & Planning
ERP
CRM
BI
SCM
BW/BPC
BW
ERP
BW
EWM
TM
Regional reporting
Lean regional BWs for reporting on ERP systems
(and some external sources)
Regional Reporting
ERP
SRM
BW
Non-SAP
Public
25

Reporting and planning capabilities in SAP Business Warehouse and SAP S/4HANA
Considerations for future analytic solution
How much data latency is acceptable

How much historic data is required
Report usage frequency (i.e. user numbers)
Variety of data sources (e.g. GTS, SRM, non-SAP)
Complexity of the data joins
Financial Planning
Low
Financial Consolidation
BPC
Integrated Planning
Embedded Analytics
Planning & consolidation
Comprehensive Reports
High
Prediction
Data source integration
Real-time analytics
Historic data
Lightweight modelling
Extensible via scale-out
SAP S/4HANA
BW
Public
26

Reporting and Planning Capabilities in SAP Business Warehouse and SAP S/4HANA
Main decisions in our example
Much of the regional reporting can now be done in SAP S/4HANA. Many reports will be migrated into global BW
with small modification as required, many reports will be discarded initially.
Financial planning and consolidation will move gradually from BW/BPC to SAP S/4HANA. All other functionality
like integrated planning and the comprehensive reports will stay on BW/BPC. The other systems will continue to
replicate data into BW.
Planning & consolidation
BPC
Integrated Planning
Embedded BW
Functionality
moves
Financial Planning
Prediction
Real-time analytics
Historic data
BW
SAP S/4HANA
H
Public
27

Future options: A real Enterprise Data Warehouse in a mixed scenario
Visualization of reporting and planning & outlook
BusinessObjects Cloud with planning and reporting capabilities, incl. GRC functionality Boardroom of the
future.
The BW implementation on HANA can be extended external data such as big data either for reporting but also to
implement archiving concepts
SAP
BusinessObjects
Cloud
Integrated Planning
Embedded BW
Financial Planning
Real-time analytics
Historic data
SAP S/4HANA
Data lake
Prediction
BW
HANA
native
Hadoop &
HANA
Vora

H
Enterprise Data Warehouse (EDW)

Public
28

This year
ERP
Finance
Next year
Universal F1
journal S/4
Supply Chain
Planning
Procure to Pay
F2
IBP S2
IBP S1
Demand
Response
Shopping
P1 Cart S/4
Customer
Relationship
Order to Cash
IBP S3
Supply
Financial
planning S/4
O1
R3
BO
Cloud
yMarketing
E6
Decommission
SRM & SCM
R2
Reports
region 2 & 3 in S/4
New Fiori
FES
E2
ERP1
to S/4 E1
P2
Ariba NW
aATP S/4
Reports R1
region 1 in S/4
Financial
consolidation S/4
3+ years
S4 PP/DS S/4
M1
Online
R1
Reporting CRM
on HANA
F3
Two years from now

grow and innovate
Import
balances of
E5 ERP3 to S/4
E4 Import balances
of ERP2 to S/4
E3
S/4
Analytics
Co-deploy
yMarketing
with CRM on
C3 HANA
C2 Install SLT
& DS
C1 CRM
conversion to
HANA
Decommission
B4 BW2 & 3
B3
BW & Datamart
mixed scenario
Decommission
BW1
B2
Global BW to
HANA
B1

Public
29
Infrastructure Platform
Scalable Private Cloud Infrastructure Platform
Public
Infrastructure Platform Solution

SAP HANA Platform Overview
Connectivity
SAP NetWeaver
Portal
UI
SAP Fiori
(SAP UI 5)
BI Front-Ends
(SAP Lumira, )
SAP Gateway
Mobile Apps
SAP HANA
Cloud Connector
Application
SAP
S/4HANA
CRM
yMarketing
GTS
SCM
APO
BW
3rd party
Application
Integration
SAP HANA
Cloud Integration
SAP HANA Platform
SAP Process
Orchestration
Parallel
Processing
Engines
Data Integration
OLTP
OLAP Predictive
Text
Spatial
Rules
Data Services
Graph
SAP Landscape
Transformation (SLT)
Smart Data Integration
Deployment (MDC / MCOS / MCOD)
Tiered
Data
Stores
SAP HANA
In-Memory
Data Lifecycle
Manager
Smart Data Streaming
SAP HANA
Dynamic Tiering
Orchestration
SAP Solution Manager
Smart Data Streaming
Smart Data Integration
Dataor
Stores
Internet
of Things
SAP HANA
Vora
Simple user experience on

all devices
All data at your fingertips
Real-time enablement
Decision making, personal
insights
Elimination of batch processes
Eliminating interfaces and
redundancies
Solve advanced business

challenges with engine
capabilities
Business prediction
Spatial reasoning
Text analytics & mining
Big data integration

Sensing & responding, real-time
event streaming
Flexible data tiering
Data
Lakes
Uniform platform in the

cloud and on-premise
Public
31
Infrastructure Platform Solution

Technical architecture proposal
DC1
Technical architecture definition of

planned landscape
Application Server Layer
SAP Application servers to virtual machines

Leverage the built-in High Availability
provided by the platform for all systems
Implement a Disaster Recovery concept

based on HANA or storage replication
means
DR Application
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
Establish a sizing process

Decide on a scalable HANA server, network
and storage topology
DC2
S/4
CRM
GTS
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
BW
Production
SAP
HANA
SAP
S/4
HANA
GTS
HANA
Node
HANA
Node
BW
EDW
DR
Production
Failover
for local
HA
HANA
Node
HANA
System
Repl.
SAP
HANA
SAN
Storage
SAN
DR Storage
Decide deployment options for production

and non-production systems
Public
32
Thank you
Contact information:
Gunther Schmalzhaf
gunther.schmalzhaf@sap.com

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Version 1.

Define Your Innovation Roadmap

2016 SAP SE or an SAP affiliate company. All rights reserved.

A strategy for a roadmap creation

A methodology for implementation and

An assessment for deployment and

A future approach for reporting and planning

A definition of a potential HANA based

Strategy and Roadmap

Strategy and Roadmap

Define a target architecture what is the input?

Target architecture definition

Industry & Technology Trends

Requirements from internal business teams

2016 SAP SE or an SAP affiliate company. All rights reserved.

Pain points of current

Gains & Pains

Strategy and Roadmap

Define strategic objectives mapped to benefit areas

Derive a target enterprise architecture (high-level

Innovation Portfolio Matrix

2016 SAP SE or an SAP affiliate company. All rights reserved.

Strategy and Roadmap

Three regional ERP systems and BW systems

Regional systems consolidated into one global

Sourcing & Procurement

2016 SAP SE or an SAP affiliate company. All rights reserved.

Strategy and Roadmap

Two years from now

When migrating to SAP S/4HANA, new possibilities may change the

Outside in approach: Based on the example of

Inside out approach: Reporting

Platform and Technology shows possibilities

Platform / Technology Projects

Considerations for the ERP Strategy

Sourcing & Procurement

Considerations for the ERP Strategy

Conversion vs. New implementation

2016 SAP SE or an SAP affiliate company. All rights reserved.

Considerations for the ERP Strategy

Key decision drivers

Weighing of business requirements / benefits vs. time-to-value

Faster on target solution which offers: SAP S/4HANA

Fast on first stepping stone (SAP HANA) which offers: performance,

Overall lowest costs as only one large project with one

Higher project complexity

Lower project complexity

2016 SAP SE or an SAP affiliate company. All rights reserved.

Considerations for the ERP Strategy

Current solution vs.

2016 SAP SE or an SAP affiliate company. All rights reserved.

1. Consolidate all (including historical

Considerations for the ERP Strategy

Migration of historical data

Delta of current solution vs. future business process

Solution does not fit

2016 SAP SE or an SAP affiliate company. All rights reserved.

New S/4HANA system 3

New S/4HANA system

Considerations for the ERP Strategy

Two years from now

Platform / Technology Projects

Considerations for Customer Relationship Strategy