openSAP SAP Business Suite 4 SAP HANA in a Nutshell

UNIT 1

00:00:12 Hello and welcome to a new openSAP course which provides you knowledge about SAPs

innovation SAP S/4HANA in a Nutshell.

00:00:21 My name is Sven Denecken, Global Vice President Co-Innovation and Strategy for SAP

S/4HANA, and Im delighted to guide you through this course.

00:00:31 I would like to start with some insights on what you can expect this week. So first, what is SAP

S/4HANA exactly?

00:00:43 SAP S/4HANA is SAPs next-generation Business Suite. SAP S/4HANA was unveiled in New

York on February 3,

00:00:51 and today openSAP is offering you the opportunity to get an overview of the further insights

into this new SAP offering.

00:01:02 SAP S/4HANA is fully architected for the most advanced in-memory platform, SAP HANA, and

it is designed on the most modern design principles with SAP Fiori user experience.

00:01:17 It will be offered as cloud, on-premise and hybrid deployment option to provide the maximum

choice to customers.

00:01:27 SAP S/4HANA is designed to drive business innovation with simplicity by connecting people,

devices and business networks in real time.

00:01:39 This to support the development of new business models. It will also help to accelerate the on-

ramp to topics like the Internet of Things and big data.

00:01:50 And, of course, the simplified data models allow customers to re-imagine their IT, helping to

drive lower costs and aiming to help deliver IT efficiency.

00:02:02 Let us walk quickly through the agenda and see what the speakers have for you.

00:02:10 The first speaker of this course is a man that needs no introduction, Bernd Leukert from the

SAPs Global Executive Board.

00:02:18 He is giving his perspective on SAPs product strategy and SAP S/4HANA specifically.

00:02:25 And his focus areas include topics like how to operate in a world of increasing complexity and

constant change. This is not new, of course,

00:02:37 but it is increasingly pronounced and forcing us - and, of course, also you as customers - to

rethink the boundaries and definition of enterprise software in a digital, transforming world.

00:02:51 He will also elude to how we all are faced with a convergence of ubiquitous connectivity

combined with decreasing bandwidth costs,

00:03:00 and touch user interfaces on mobile devices, cloud computing, in-memory technology, the

Internet of Things and big data.

00:03:11 Importantly, he will elude to how SAP S/4HANA creates unique opportunities to not only run

the day-to-day business in real time with industry best practices

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00:03:24 but also to reinvent business models and drive new revenues.

00:03:30 The second speaker in line is Markus Schwarz, Senior Vice President and General Manager

for SAP S/4HANA in Global Customer Operations.

00:03:38 He will talk about his point of view on the topic and how SAP S/4HANA is where SAPs Run

Simple strategy materializes in the core product offering, the SAP Business Suite.

00:03:52 Well hear how dramatic simplification of core applications enables business model and

process innovation,

00:04:00 how simplification of system landscapes and data footprint for lower TCO helps customers

and, of course, also IT,

00:04:10 where simplification of user and system interaction and provisioning an integrated user

experience, on premise and in the cloud, make the difference.

00:04:21 Next in line: Wieland Schreiner, Executive Vice President and Chief Product Owner for SAP

S/4HANA. He will talk about the great simplifiers and the representation of the next-generation

ERP

00:04:36 because S/4HANA is natively built on SAP HANA, well leveraging the four capabilities at its

best like, for example, text mining, prediction, simulation and decision support.

00:04:49 He will show how this creates unique opportunities to dramatically simplify the data model. We

heard about that before: No aggregates, no indices, but also no redundancies.

00:05:03 Because S/4HANA is designed for the end user, offering the Fiori user experience. Well see

how this embeds with the exception-driven analytics and automated decision proposals.

00:05:19 The next speaker is Jens Krger, Senior Vice President and Head of Line of Business Finance

and the SAP Innovation Center.

00:05:27 He will share his point of view about SAP Simple Finance as the frontrunner of SAP S/4HANA.

00:05:36 He will share with us how it provides instant financial insight with highest flexibility, how it

demonstrates the paradigms underlying S/4HANA, most importantly, the simplification,

00:05:48 and will also offer accelerated and simplified processes based on a simple data model

following the principles of single source of truth, all with a simple and intuitive user experience.

00:06:03 He will show how it provides functionality that is comparable to the well-known scope of SAP

ERP Financials in a non-disruptive manner.

00:06:15 Next in line is Rudolf Hois, Vice President of Innovation Delivery for SAP S/4HANA, and what

hell share with us in that unit,

00:06:25 well, that centers around how to deliver public cloud, managed cloud and on-premise solutions

for lines of business in industries,

00:06:35 how to combine our latest innovations with the in-memory platform, user experience, and the

global cloud,

00:06:44 and finally, how to achieve a non-disruptive adoption path for installed base customers.

00:06:52 The next unit is covered by Steffen von Berg, Global Head of Customer Engagement for Cloud

Delivery and Services.

00:07:01 His focus is on how to help customers to move to the cloud edition in a simple way, how to

help to avoid unnecessary pre-investments in hardware and services,

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00:07:12 and of course, how to get a fast proof of the unbelievable advantages of a simplified and very

fast Business Suite with SAP S/4HANA,

00:07:24 and finally, how to give customers the choice to drive their own landscape or to use the SAP

cloud.

00:07:34 Last but not least, Im happy to share my point of view on SAP S/4HANA in the last unit of this

course,

00:07:41 where we want to focus on how we help customers to run simple and drive business value in a

digital and networked world,

00:07:51 why we deliver public cloud, managed cloud and on-premise solutions for lines of business in

industries,

00:07:59 and how we combine our latest innovations: in-memory platform, the ultimate user experience,

and the global cloud for what you are going to see in SAP S/4HANA.

00:08:11 Last but not least, we want to have a call for action on how we together can define strategic

innovations collaboratively through a co-innovation approach.

00:08:25 For further information, please always also see our homepage via sap.com/s4hana.

00:08:34 And make sure you frequently check the assets in the course repository from this openSAP

course for upcoming valuable information.

00:08:45 And, also a big note, there soon will be a deep-dive course on S/4HANA here on openSAP.

00:08:55 So now, lets start the course with Bernd Leukert.

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UNIT 2

00:00:14 Welcome back to this openSAP course about SAP S/4HANA in a Nutshell.

00:00:20 My name is Bernd Leukert. And after Sven Deneken's welcome unit, I will now guide you

through Unit 2: Introduction to SAP S/4HANA.

00:00:31 Let me first set some context. Today we operate in a world of increasing complexity and

constant change. This is not new.

00:00:41 However, the convergence of unlimited connectivity, mobile devices, cloud computing, big

data, in-memory technology

00:00:50 as well as the Internet of Things is forcing our customers and us to rethink the boundaries and

definition of enterprise software in a digital world.

00:01:01 We see a new paradigm of interconnected networks, of both, companies and people where

data is omni-present.

00:01:11 Just consider the number of 500 million tweets per day, 4.7 billion things are shared on

Facebook daily,

00:01:21 and 50 billion connected machines expected by 2020, creating new opportunities, creating new

challenges,

00:01:30 and creating new sources of competitive advantage as companies master the digital

transformation.

00:01:38 We as SAP are determined to seize this opportunity. Therefore, we have defined our product

strategy along three pillars.

00:01:48 First, the platform that enables customers to build and extend applications to differentiate their

business, open up the world of data, for example, with Internet of Things.

00:02:03 Secondly, the applications that are modern, integrated, and leverage the insight from the whole

value chain in every transaction and every decision.

00:02:15 And thirdly, the network that goes beyond the company network and brings the outside world

directly into our applications.

00:02:27 SAP S/4HANA is a major step forward for our applications. So, many ask: Why is SAP

S/4HANA and what is it?

00:02:39 Simply stated, it is the logical successor for our flagship product, the Business Suite. It's the

next generation enterprise software for the digital age.

00:02:51 So what is new? SAP S/4HANA is based on three things: A massively simplified data model, a

completely Fiori-enabled user interaction with guided configuration.

00:03:06 So let me explain each of the 3 drivers. First, it runs on a substantially simplified data model.

00:03:14 In the past, indices and totals tables were created to avoid that the system was always

calculating.

00:03:23 This happened to ensure overall system performance but at a price: Complexity and inflexibility

of the system.

00:03:33 Both have now been eliminated from the system as we substantially simplified our data model.

00:03:41 For example, a typical booking in Finance now touches only 4 instead of 15 tables working on

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a document level.

00:03:52 What is key for our customers? As we maintain the core data model, it is now easier to

integrate in

00:04:00 and to migrate from existing suites in comparison to any other upgrade in the past.

00:04:08 Secondly, it is completely Fiori-enabled. SAP S/4HANA has a great user experience on any

device across the 43 core roles.

00:04:21 It's a huge step forward for all end users and simplifies the system access and usage

massively.

00:04:30 And thirdly, SAP S/4HANA has a guided configuration and pre-engineered integration that

makes it completely easy to implement and to run.

00:04:43 The guided configuration means that the system tells you or even reminds you what needs to

get done - in an easy, understandable way.

00:04:54 Changes can be implemented swiftly, and the pre-engineered integration brings together all

our applications.

00:05:03 All becomes one pre-engineered but yet flexible solution, including our line-of-business cloud

applications.

00:05:13 It comes in packages, in bundles that can be sold together and include software and

implementation content,

00:05:23 including pre-engineered rapid deployment solution packages for integration and configuration.

00:05:30 And all this together with full choice for on-premise and/or cloud consumption; in the cloud

both, private and public cloud.

00:05:42 So, new data-model, great user experience, and easy configuration and integration means a

complete overhaul

00:05:52 from the top to bottom of our applications, of course, leveraging the power HANA has given us.

00:06:01 So, how does this help our customers? Let's start with the technical perspective. There are

three advantages:

00:06:11 First of all and most obviously, the data footprint is being reduced, massively. And that is not

just a couple of percentages or half.

00:06:23 It's reduced by the factor of 14 at SAP already, and we see a potential for up to factor 30.

00:06:33 That makes basically the biggest ERP systems possible to run on in-memory.

00:06:41 Secondly, it increases the data throughput: As fewer tables get touched, fewer tables get

locked. A much higher throughput can be achieved.

00:06:52 In our tests we have seen increases with up to factor 3.

00:06:57 And thirdly, the aggregates and indices made structural changes to the data setup very hard to

implement. These restrictions are gone.

00:07:11 The flexibility in system setup is increased. Combining these together, SAP S/4HANA

translates into a real business value for the enterprise.

00:07:24 SAP S/4HANA creates unique opportunities to not only run day-to-day business in real-time

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with industry best practices,

00:07:35 but also to reinvent business models and drive new revenues: Whole new business models

can be re-imagined

00:07:44 with the simplicity to connect to people, to devices and to business networks, again in real-

time, which delivers new experiences and value to customers.

00:07:58 Internet of Things and big data become accessible to any business - no more complex

business collaboration and interactions.

00:08:08 Also, business decision-making can be re-imagined with the simplicity to get any insight on any

data from anywhere in real-time:

00:08:20 Planning, execution, prediction and simulation are now all done on the fly to drive faster

business impact - no more complex data consolidation through Excel and other means.

00:08:36 And finally, also business processes can be re-imagined. The simplicity to focus on the

essential tasks, again in real-time,

00:08:46 creates flexibility and agility to change business processes as needed for new efficiencies - no

more long-running batch jobs.

00:08:59 Why does this matter at all? Because customers at all levels, from operational staff to the

boardroom, are demanding it.

00:09:09 On the operational level: Being able to access all relevant data in real-time and transforming

technical predictive algorithms into business user applications,

00:09:20 the transactional, operational workforce becomes digitally empowered to a complete new level

of productivity.

00:09:30 When we empower the operational shop floor with insights from data and algorithms, the role

of management and executives changes as well, for example, with the boardroom of the

future.

00:09:43 This means that all business users at any level want data at their fingertips -complete visibility

across the entire functional span of a company, instantly.

00:09:59 They want and need instant insights into their business because that is how they can be more

competitive, how they shape and make strategic decisions, of course, faster and more

accurate.

00:10:15 And that is what SAP S/4HANA does: Making businesses more competitive with the power of

data and insight.

00:10:26 So, how do we get there? It is important to know that, for each situation, the customer has full

choice,

00:10:35 full choice of deployment between cloud, on-premise and even hybrid, regarding and

regardless of the customer situation.

00:10:46 For new customers, the journey is defined by a new implementation of SAP S/4HANA with

simple adoption,

00:10:55 with its guided configuration, easy on-boarding, and deployment with pre-configured best

practices.

00:11:04 For SAP Business Suite on any DB customers, SAP remains committed to protect our

customers' investments.

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00:11:13 But to take advantage of the transformational simplification, it requires the power of SAP

HANA.

00:11:21 The Business Suite customers can take advantage of SAP S/4HANA in a non-disruptive way:

00:11:28 Moving to SAP S/4HANA for a typical existing SAP ERP 6.0 customer will require a move to

the latest enhancement package

00:11:41 and a database migration from any DB to SAP HANA combined with the deployment of the

exchange innovation.

00:11:50 This means, current code is replaced by a significantly simplified new code.

00:11:58 For existing SAP Business Suite powered by SAP HANA customers, it is even faster as only

the deployment of the exchange innovation is required.

00:12:09 So, partners and SAP will provide an easy path for customers to move to SAP S/4HANA with

pre-defined migration and deployment packages for quick time to value.

00:12:25 However, what is common across all three customer types is a consistent service offering to

support the customer journey.

00:12:34 Realizing that one size does not fit all, we remain committed to providing our customers with

choice to deploy in the cloud, on premise or, again, in any hybrid scenario.

00:12:51 For more than 40 years, SAP has been working successfully with thousands of customers by

solving complex business and IT challenges.

00:13:01 Prior to S/4HANA, applications such as CRM, SRM, and so on, have all been integrated

applications but with overlapping data models and possibly many databases.

00:13:16 Now, SAP S/4HANA: We bring everything together in a single system on a single platform and

database with one set of data,

00:13:29 massively reducing complexity and cost for the system landscape, massive simplification to

enable new business processes,

00:13:41 analytics and reporting embedded in every transaction, flexible business processes that allow

a more agile adaptation of processes.

00:13:51 This redefines how enterprise software creates value in a complex world, in the new digital era.

00:14:01 However, this discussion cannot stop here. We see SAP S/4HANA as the software for the

future.

00:14:11 That allows us to take a more holistic view of our entire offering of pre-configured services,

such as Customer Engagement and Commerce, Fieldglass, SuccessFactors, and so on.

00:14:28 For example, in the professional service context we are able to seamlessly create a project,

drive staffing, billing definition,

00:14:37 and monitoring combined with a great user experience, of course, in one solution.

00:14:44 This allows the entire product portfolio to act as an enabler for business processes driven by

Internet of Things, big data, omni-channel capabilities, and so on.

00:14:47 And for example, as Internet of Things spread, the implications for business model innovations

are huge.

00:15:07 Sensor data can enable reliable predictions with respect to potential failures in machines.

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00:15:17 Such failures can then be avoided or fixed as soon as they occur, leading to an optimized

production cycle and better services. Such new features enable new business models.

00:15:31 For example, car manufacturers can use the knowledge of when, which, and why their cars will

fail to transform substantial parts of the business.

00:15:42 Customer service can be proactive and offer enhanced customer intimacy. For instance, they

can plan more efficiently and contact the customer proactively,

00:15:55 arrange inspection services with car pick-ups at home and a replacement car, for example.

00:16:02 But also logistics of spare parts, refill products, quality insurance and improvement, new car

design can all be brought to a complete new level. All this is very exciting.

00:16:21 With SAP S/4HANA we start a journey to the digital enterprise. We open endless opportunities

to advance competitiveness and productivity for any business.

00:16:35 So thank you for taking the time today, and I look forward to our journey together.

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UNIT 3

00:00:12 Hello. SAP has just announced its next-generation Business Suite, the SAP Business Suite for

SAP HANA, short S/4HANA.

00:00:24 With this new product, SAP is helping our customers to realize their vision of the perfect

enterprise,

00:00:36 which is a real real-time platform, which is integrated and offers an integrated user experience,

which is open and extensible, and connected to the business networks.

00:00:52 When SAP released the HANA database in 2011, we always had in mind to leverage this

ground-breaking new database with almost zero response time for building completely new

applications.

00:01:14 So as a first step, we put the Business Warehouse on SAP HANA, which gave customers real-

time analysis, real-time reporting.

00:01:25 The next logical step was to put the entire Business Suite on HANA, which brought a lot of

business value to our customers:

00:01:36 Real-time business, OLAP, OLPT together, and also in this cloud with the HANA Enterprise

Cloud Model.

00:01:47 Now the next logical step was to design applications that really leverage the capabilities of the

HANA database to the maximum extend,

00:01:57 to really tailor applications to the advantages of a HANA database.

00:02:04 So as a frontrunner, SAP brought Simple Finance to the market, which gave customers instant

financial insight with no aggregates, no indices, no delays - a single source of truth.

00:02:21 Now we've then decided to do that with the entire Business Suite. And we said we wanted to

leave two important barriers behind us.

00:02:33 One barrier was always that we had to design applications that would fit any database, even

the slowest one.

00:02:41 With S/4HANA, we design applications that are tailored to the advantages and to the

capabilities of the HANA database.

00:02:51 Also with the new product, we can really dramatically simplify applications, take out

redundancies and also reduce the data footprint to a maximum extent.

00:03:03 And the result is S/4HANA, which we launched beginning of the year with a simplified data

model, a completely new Fiori-based user experience,

00:03:16 advanced processing and also choices of deployment: On premise, private managed cloud

and public cloud, and of course multi-tenancy.

00:03:28 The business value for customers is really tremendous. It allows our customers to re-imagine

their business models.

00:03:39 They get the simplicity to connect to people, connect to business networks, to devices - with no

more complex collaboration. All businesses really connected.

00:03:52 Also, customers will be able to re-imagine their business processes. They will get the simplicity

to focus on the essential tasks.

00:04:04 We will change, we will collapse business processes, we will completely leverage the

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availability of a database that gives us almost zero response time.

00:04:16 There is no more batch; there is no more delay, all processes real-time.

00:04:22 Also with a connection to the outside world, with a process management without any delays,

customers will be able to re-imagine their business decisions.

00:04:37 There will be no more manual consolidations. Customers will be able to make decisions on the

fly and at the highest level of granularity.

00:04:48 So they get the simplicity to get any insight for any data from anywhere. Also there is good

news for the IT folks.

00:04:59 With the re-imagined business experience, with the simplicity to get the job done leveraged by

the Fiori interface, customers will be able to significantly improve end user productivity.

00:05:16 Also, with a dramatically simplified system configuration, customers will be able to bring

systems up in a very short time and realize the business value instantly.

00:05:32 Also, the data models have changed. The data model is consistent with the previous data

model of the Business Suite but it has been dramatically reduced.

00:05:42 The data footprint has been dramatically reduced, so the in-memory platform enables

customers to also reduce TCO in a significant way.

00:05:55 Now, how can customers get there? There are multiple choices of deployment and there are

multiple starting points customers are at.

00:06:06 Now for new customers, it's really easy. New customers can immediately deploy S/4HANA on

premise, in the managed cloud or in the public cloud, and also leverage that in a hybrid mode.

00:06:22 For customers that are on any DB, they need to get to the latest enhancement pack. They

need to migrate their database to HANA,

00:06:33 and then they deploy the exchange innovation, which is the simplified application, into their on-

premise installation.

00:06:44 If they want to move to the cloud immediately, it just requires to transfer the data to the cloud.

And, of course, also here a hybrid deployment is possible.

00:06:56 Customers that have leveraged the advantages of the Suite on HANA in the previous two

years have a big advantage

00:07:07 because they are on the latest enhancement pack, they are already running on a HANA

database.

00:07:13 So what they need to do is, as a one step, deploy the exchange innovation, the simplified

application, and then they are up and running with S/4HANA.

00:07:25 For the cloud, same thing here: They need to deploy their data, they need to transfer the data

to the cloud, and they are up and running.

00:07:33 Now, SAP is supporting this transition for customers with a number of packages:

00:07:41 Packages that help customers to connect S/4HANA with cloud solutions to realize the hybrid

model,

00:07:51 packages that help customers to smoothly migrate their data from the existing system to

S/4HANA.

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00:08:01 Our key objective is to enable innovation without any disruption. With that, we believe,

customers can realize significant advantages.

00:08:14 They can change, they can take advantages of new business models, they can significantly

speed up their processes,

00:08:23 they can collapse processes to fewer process steps, and they also can make much better

decisions.

00:08:32 So, if you want to learn more about the advantages and the business value of S/4HANA,

please also visit our homepage at sap.com/S4HANA.

00:08:44 Thank you very much.

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UNIT 4

00:00:12 Welcome to the Unit 4 of the openSAP course SAP S/4HANA in a Nutshell. My name is

Wieland Schreiner.

00:00:20 I'm heading S/4HANA and will show you how simplification drives innovation.

00:00:28 Let's focus on the three key enablers of this digital transformation: SAP HANA, Real-Time &

Simplification, and SAP Fiori.

00:00:40 What does SAP HANA provide us as the key enablers for our roadmap on S/4HANA?

00:00:48 I will focus on four native SAP HANA capabilities: Text Mining, Analytics & Prediction,

Simulation, and Decision Support.

00:01:00 I show you this Text Mining based on our Customer Engagement Intelligence solution where

we get thousands and millions of e-mails of unstructured information.

00:01:13 Unstructured data will be a much more important source in the future where we have to

analyze data and get the sentiments out of it.

00:01:24 So, deriving the sentiment out of this text and getting the sentiment directly into our structured

information is a key asset which HANA can provide to us.

00:01:39 In Supply Chain, Analytics & Prediction is extremely important. Analytics gives you the insight

in the past, but that's only the less important part.

00:01:50 The much more important part is: What can it give us into the future, the insight into the future?

00:01:57 To predict how the capacity situation will behave over the next weeks and months gives you

the complete insight into your logistics, into your supply chain, which you have to plan.

00:02:11 Simulation is something which we need to get the insight into our situation where we will run

into when something happens.

00:02:22 So you see here, if an order would come in, in the response prototype, we see that we have a

simulation of how a big deal would influence our capacity situation.

00:02:36 But not only taking a big deal. If you would simulate that for multiple, hundreds of, thousands of

deals, you could easily see the bottleneck where you run into in your Supply Chain Network.

00:02:50 Now let's come to a very interesting part. When the system could provide you with the insight

of the needed decision,

00:03:00 then we are in the situation that we get the intelligence which we had asked to be in front of the

system now into the system.

00:03:10 And with that we can drive the quality of best possible decisions by simulating and getting the

decision support enabled by the system to the end user.

00:03:23 So, these are all great capabilities which SAP HANA can provide natively as an engine,

00:03:30 so it's besides the fact that HANA is the best in-memory, column-based database we have on

earth.

00:03:37 We can get all the capabilities now because the data and all these algorithms come together

on this one platform.

00:03:46 How do we have to focus on the next part: Real-Time & Simplification?

00:03:54 When we see a customer system, a real customer system in the US, on a traditional database

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of close to 600 GB,

00:04:05 and we have a vision. And the vision is to get it down, this data footprint, to the lowest possible

number you can get.

00:04:16 So clear HANA, with its compression and with its column store, already drives down the

footprint by factor 5.

00:04:28 We have proven that with our Suite on HANA customers, with our 300 live customers, with

over 500 projects, and with the 2000 customers.

00:04:36 We know that. That's a fact, which we get natively out of HANA.

00:04:42 But when we go now to S4, and when we go to the ultimate simple data model, then we have

seen a footprint reduction in Finance,

00:04:54 by getting rid of those tables which we showed you, which we explained you that all this

aggregation and indices are not necessary anymore,

00:05:03 then we can drive it down by a factor 3. The same in Simple Logistics: By getting rid of all

those tables, all this 26 tables which you saw on the last slide.

00:05:16 So when we drive that for the whole system, we can go to minimize that system by additional

factors.

00:05:26 And that's not the end of the story. If we now take out of that system all that is not needed, so

all historical information,

00:05:36 if we go down to information where we only need the actual information, then we can further

drive down the footprint of the system.

00:05:48 And when you see this vision which we have and see that you can have half a terabyte system

compared to a data footprint which would easily fit into my iPhone,

00:05:59 then you know where I am coming from. The vision is to make that large system, this large,

complex system as simple and as tiny

00:06:08 that I can handle it with the lowest TCO possible and with the highest flexibility you can

imagine. This is the vision that we have behind data footprint reduction.

00:06:18 And it's not about factor 2 or percentages. It is a massive approach which we want to take:

Simplification to the utmost possible possibility which you can get.

00:06:32 We want to have the simplest, the most simplified data model, just as simple as possible, and

reduce the data footprint by that to the maximum.

00:06:45 Let's get to the last aspect, and that's the user experience.

00:06:50 We already saw some slides but I would like to focus now on what does it really mean to do a

new user experience.

00:07:00 You see a screen from Customer Engagement Intelligence which gives you, in a perfect way,

the customer journey.

00:07:07 From the buying event on the right side of the screen, we can follow down which channel did

the customer use to inform himself before buying a product.

00:07:19 You know that when you do that in the Internet. That's exactly the process which you do. So

visualize that, and visualizing that for all the customers which we track,

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00:07:30 you get on one screen the full experience, the full transparency. So this gives you the complete

analysis based on Text Mining, which is running in the background to enable that.

00:07:41 So it gives you one experience to consume an information in a way you could never consume

before. That we know from Fiori.

00:07:53 Fiori, based on HTML5 and based on the UI5 library from SAP, provides you with this great

capability to run in the web and to even being technically mobilized.

00:08:06 With the fact, that with the design principles from Sam [Note: Sam Yen, SAP Chief Design

Officer], we build that role-based. We know who consumes that UI in the front.

00:08:17 This brings us to another dimension. In the past, we were building UIs where the end

consumer had to run the full intelligence in his head

00:08:33 to maintain the values on the left-hand side of that screen and give that system all information

to run a resolution.

00:08:47 The resolution strategy, the resolution of the business problem, had to be in the brain of the

user.

00:08:58 Now we want to build screens where we have the full resolution strategy based on the role-

based concept already built into the system,

00:09:08 so that the intelligence is behind that screen which means - if you look to the right side - you

not only get the full analysis of the simulation,

00:09:19 what would happen if you would use that resolution strategy. You also get all the resolutions

which would be possible pointed out on the screen,

00:09:30 based on runs which happened during that transaction and which were fast enough to provide

you with these resolutions and rate you those resolutions.

00:09:41 If you compare that to the past: In the past we had several transactions and runs to come to all

these resolutions,

00:09:49 and then you would hopefully have run the right runs to find the best resolution. This all can be

provided by a system which has this incredible speed

00:09:59 and this incredible computation power driven by SAP HANA. This is the new screens we need

to build.

00:10:08 This is the user experience that customers want to have in the future. This is what SAP

S/4HANA should look like in the future.

00:10:22 And in addition to that, this screen is as simple that it, from a business context now, can even

run on a mobile.

00:10:32 It is not only the technical enablement of Fiori, it is the business enablement which we put into

the logic and into the usage of that screen

00:10:41 which makes that screen, in the end, mobile-enabled.

00:10:48 What I wanted to do with all this, I wanted to show you how we run a perfect enterprise. We

run it with S/4HANA.

00:10:58 We own all this customer base today because all these customers are today on premise.

00:11:06 They massively go to the cloud, especially in the service industry, in the public cloud, but also

into managed cloud.

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00:11:14 So that's the reason why we offer the customers the maximum choice of deployment by

providing S/4HANA on the public cloud, on the managed cloud, and as well on premise.

00:11:27 Clearly, this new solution, this new code line is built with cloud qualities for the cloud, and it's

also deployed on premise.

00:11:37 It is integrated to all our cloud offerings. In the public cloud, like we have the external

qualifications from Fieldglass, the request for proposal in the Ariba network,

00:11:49 or the Employee Central in SuccessFactors.

00:11:53 In that sense, we provide one solution to our customers while we still build the core on our core

assets on our NetWeaver platform in a non-disruptive way,

00:12:02 but want to clearly drive our partner extensions to our HANA Cloud Platform as the platform of

choice for extensions.

00:12:16 Thank you for watching and have a great day.

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UNIT 5

00:00:14 Welcome to Unit 5 of the openSAP course, SAP S/4HANA in a Nutshell. My name is Jens

Krger and I am heading the line of business Finance.

00:00:22 And today I will show you how SAP Simple Finance creates value for anyone who is working in

a financials department.

00:00:32 So, before I go into the details of SAP Simple Finance, I want to show how this relates to SAP

S/4HANA.

00:00:39 The SAP HANA platform with its high performance capabilities of data access and an

integrated transactional analytical capabilities

00:00:50 is the foundation of SAP Simple Finance. Simple Finance leverages the power of SAP HANA,

00:00:58 and Simple Finance offers a simplified and redundancy free data model.

00:01:04 So SAP S/4HANA integrates SAP Simple Finance and drives innovation through simplification.

00:01:12 So lets have a look in what is Simple Finance? So, Simple Finance can be categorized along

5 core values.

00:01:20 The first one is non-disruptiveness. So with these non-disruptive innovations we are ensuring a

seamless adoption

00:01:29 and implementation of SAP Simple Finance. Second, we have a single source of truth

00:01:29 and the single source of truth offers the functionality that all data is available without the need

of re-conciliation.

00:01:45 We will come to this in a bit. Third, we have flexibility as one of the core values.

00:01:51 Flexibility is based on the single source of truth, and enables us to analyze and aggregate

according to the changing business requirements,

00:02:01 and changing perspectives at any time. Based on these two we have an instant insight as one

of the core values.

00:02:13 The instant insight enables us to explore the financial data at any point in time and at all levels

of granularity.

00:02:23 All of these functionalities are being consumed in an intuitive role-based user experience that

adds the fifth core value of Simple Finance.

00:02:34 So now lets have a look at these details and here I want to go into the details of the non-

disruptive innovation.

00:02:42 But before I show how Simple Finance implements this I want to emphasize where we come

from.

00:02:50 Lets have a look at the left side, we see the SAP ERP Financials and in fact the ERP

Financials is real time.

00:03:00 Its based on materialized aggregates. However, they are static. And thus we cannot change

perspectives

00:03:09 as we have to follow the pre-start definition of the materialized aggregates.

00:03:15 Then now, with SAP HANA underneath and the power that comes with this we can look how

Simple Finance implements this.

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00:03:24 And here we see, we have a Universal Journal entry - that with the power of SAP HANA -

enables compatibility views.

00:03:31 And those compatibility views are the reasons for a seamless integration. Applications run as

before.

00:03:43 Further, SAP Simple Finance provides a full functional scope of financial solutions and adding

those two together we have innovative applications, build into SAP Simple Finance.

00:03:56 So we have re-engineered the existing applications and besides we have new applications,

00:04:03 that together with the re-engineered old ones provide the users of the system, provide

financials departments with the functionality to optimize their processes.

00:04:18 For example, we have the period end close or we can optimize processes by getting rid of

unnecessary re-conciliation steps, leaving financials departments

00:04:31 to strategic tasks instead of just doing administration. How can that be done? And that is

based on a simplified data model.

00:04:39 The simplified data model enables flexible insights into the financials data. Again, I want to

start with an SAP ERP Financials to look at where we come from.

00:04:50 And here we see the different data silos. For example, financial accounting and in external

view we have controlling documents;

00:04:58 for an internal view, we have profitability documents, we have material ledgers. I can go on

and go on.

00:05:04 However, all of those silos need a re-conciliation in order to get a consistent view on the data.

00:05:12 And therefore, getting instant insights into data across all silos is not possible.

00:05:22 And therefore, with the power of SAP HANA underneath the Universal Journal Entry now

enables on-the-fly aggregation and all of this is implemented in a single source of truth.

00:05:32 The Universal Journal Entries are now the single source and therefore by design provides a

consistent view on the data and there is no re-conciliation needed.

00:05:44 Based on this we get the flexibility. Since everything is aggregated on the fly, we have a single

source that can be analyzed,

00:06:54 aggregated at any point of time and at any granularity that we want to look into.

00:06:01 So lets make it tangible. Lets have a look at the period end close and exemplify what does it

mean for your business.

00:06:10 Again, on the left side we have the traditional close and it consists of the lot of steps.

00:06:16 And those are executed in batched fashion since theyre just running too long. And with the

SAP HANA platform we are now able to reduce it.

00:06:26 Lets have a look at how this is traditionally done. There are a lot of steps, and those steps

have to be executed sequentially.

00:06:36 And they can only be executed at the end of the period. So thus in the period we have a limited

insight at the actual data. So, now lets have a look how SAP Simple Finance does this.

00:06:48 And here we see that within the period were now able to get instant insight into our data as

several steps can now be executed within the period and as there are no batch jobs anymore.

18

00:07:03 They can be executed in real time and there is no re-conciliation needed, therefore we enable

with Simple Finance the financials departments to get insights into the data earlier than before.

00:07:17 Further, this is improved performance of the specific steps, we now can reduce the close and

consolidation time overall.

00:07:28 What does it mean in exact numbers? So, at SAP we have implemented SAP Simple Finance

in our productive system, and measured the numbers.

00:07:38 For example, the processing time at the quarter end close could be reduced by 420 hours.

00:07:47 At the same time we could reduce the intercompany reconciliation issues by 70%. It sums up

of 22% of closing efforts elimination.

00:08:00 And that leaves financials departments to spend more time on strategic rather than

administrative tasks.

00:08:10 Further, we integrated a new user experience. And here we see more details on this.

00:08:16 So, we have enriched classical transactional applications with analytical capabilities and we

have seen this user experience along those processes.

00:08:25 And we have designed a coherent, role-based, simple, and delightful user interface that is

exemplified on the right side with our new dashboard.

00:08:33 This act as an entry point for Simple Finance adding analytical capabilities to start off.

00:08:41 Let us now have a look at how all of those benefits come together in our P&L insights

application.

00:08:49 With this application we are capable of looking at P&L data overtime and focus on significant

events.

00:08:57 And thats an example how instant insight, single source of truth, flexibility and a new user

experience come together.

00:09:06 So, here we see the application. Lets start with picking a date range. I just type in, last 8, and

the system automatically provides me with options. Last 8 quarters is what I want.

00:09:17 Next, I want to look into China. And I type in China, choose China.

00:09:24 And once I have chosen China and hit enter, the system provided me with an P&L on the left

side in an hierarchical mode.

00:09:34 I want to now drill down into Revenue, as I am interested in looking into software revenue.

00:09:39 So I just drag the note into the charting area and here I see now our software revenue over

time.

00:09:50 And its accumulated and its a financial system, it drops to zero at January and starts again.

00:09:58 I can also have a look at Non-accumulated view as its based on line items. And here we can

see that at every quarter end we have a huge increase in revenue.

00:10:10 But lets go back to Accumulated view, since I want to show you how we can compare years

over years and here we see that 2013 was way better than 2014.

00:10:23 And now we want to deep dive and look into the data, explore the data, and try to find out was

the reason for this.

19

00:10:33 So first, I want to see a change in Q2 2014, so I want to have a look into what happened over

there.

00:10:45 And I go back to Continuous mode and want to drill down into the end of Q2.

00:10:55 So, the system as its based on line items, now provides me with the finest granularity.

00:11:03 And as we can see its based on line items. We can drill down into the line items. The line

items are sorted by amount.

00:11:11 And here we see that, for example, in our example a large deal with the Baba group came in at

the end of the quarter of 2014.

00:11:21 And that is the reason how we can explain the spike.

00:11:24 So, go back to ... Lets zoom out again to have the full picture since we want to still explain why

in 2014 our revenue did not meet our expectations.

00:11:38 Therefore, we also want to look into costs, as sometimes there are traveler restrictions in place

and therefore we go into the cost part of our P&L statement.

00:11:50 And just look at travel costs. So, we take the travel costs, put in our chart area and as travel

costs are costs, we have to negate them in order to let us compare those.

00:12:04 So lets for the sake of getting more visibility, more insight, make the revenue invisible, and do

a year-over-year comparison of our travel costs.

00:12:16 And here as we do the mouse over, we can see that in 2014 we even had more costs on

travel. So this cannot be the reason for our revenue issue.

00:12:29 So lets close travel costs and lets have a look at the software revenue again. And here I want

to now drill down and use filters.

00:12:40 And as we can see here the filters give us the option of all of the dimensions that we have in

the system.

00:12:47 And we have HANA software licenses, we have NetWeaver, for example, we have Sybase,

and I want to use the split feature,

00:12:53 that is now enabling us to have a dedicated chart line for all of those products.

00:13:03 And here we clearly can see, that there was a change over the years. As we can look in 2014

everything went equally.

00:13:14 And in 2014 starting with Q3, there was a change.

00:13:19 And we see that the HANA revenue took off and the rest of the revenue did not, for the

products and NetWeaver and Sybase in this example.

00:13:31 With this I could show that we have an application that follows the natural train of thoughts

00:13:39 and enables us to really deep dive into the data and get the insights that we could not achieve

before.

00:13:50 So, with this lets wrap-up the course by summarizing what we just learned.

00:13:58 And as we see SAP HANA lies at the core of SAP Simple Finance and it enables a simplified

data model.

00:14:06 And also SAP HANA with its integrated transactional and analytical process and capabilities

20

enables simplified and accelerated processes.

00:14:16 Those are consumed with an intuitive user experience. And at the same time Simple Finance

implements a non-disruptive path to innovation

00:14:28 and Simple Finance can be deployed in all deployment options that SAP S/4HANA offers

namely the public cloud, managed cloud and on premise.

00:14:39 With this I would like to end this session and say thank you for your attention.

21

UNIT 6

00:00:12 Welcome to Unit 6 of the openSAP course SAP S/4HANA in a Nutshell. My name is Rudolf

Hois and in the last two, three years I've been part of the Suite on HANA program and now

lately in the S/4HANA program.

00:00:24 And in that work I have been working with quite a number of customers talking with them about

how they would go about adopting Suite on HANA in the first place and now S/4HANA.

00:00:34 And by that I'm hopefully able to give you an impression of how a migration into S/4HANA will

really work for you and what it means to go there.

00:00:42 So what are the key elements that you will have to cover during this roadmap.

00:00:48 Now we have announced S/4HANA as the next big thing: The new ERP for corporations,

which is really an alternative product to the ERP.

00:01:00 Now that already sounds a little bit as if there is a complicated way to go there and, to even

stress that fact, we also talked about a changing data model and so forth,

00:01:10 which immediately resonates in terms of: What does that mean for my landscape? How can I

actually migrate there? Is it something that is reachable or is it not?

00:01:18 Because we know that the more complicated it is to reach an innovation, the less fast adoption

can happen.

00:01:25 So we at SAP have an urge to provide a meaningful migration experience into this world, and

this is also what we have focused on.

00:01:34 And this what I will now try to show in this presentation that we actually managed the way that

this move to S/4HANA is a very feasible step.

00:01:43 So, we talked about simplified data model and, if you look at the data model today, it contains

first of all the actual transactions or master data and configuration data,

00:01:54 but then it also includes quite an amount of helping information like aggregates and indices. So

these tables, they never contained any semantic value.

00:02:05 They have always been just, if you wish, a means of performance because you wanted to get

to summations, you wanted to get to a list of information in a fast manner.

00:02:14 And in the traditional world, the only way of achieving that was by these aggregates and

indices tables.

00:02:20 Now what we have done is we've got rid of these, and by that we've thrown away two thirds of

the data, which reduces the footprint.

00:02:26 But then the question is what does that mean to your customer code? Now, by throwing away

this data we have done also one thing,

00:02:33 because some of those fields in the aggregates they obviously contained some semantics, or it

was not like a 100% statement before, but let's say a 99% statement.

00:02:41 So those elements we moved over and found another place for them so we've not lost any

semantic, we've not lost any information in the system but obviously for the code this will have

an impact.

00:02:54 Now, if we think about how you would write a code against the new data model, that seems

like a lot of work, but fortunately we've done a nice invention here.

22

00:03:02 Our NetWeaver colleagues came up with a great idea where they have introduced something

which we call equally named views or compatibility views.

00:03:11 Now, the name already indicates that they should be a placement to the aggregates and

indices, which they are, and it works as follows:

00:03:17 So these views, they have the very same name as the traditional aggregate table and they

also contains the very same fields as the traditional aggregate table.

00:03:27 Now what's happening: If a code reads and would traditionally read from the database, it will

access actually the view

00:03:34 and, by accessing the view, the very same information is calculated on the fly and brought

back to the code.

00:03:40 So for the code it's actually transparent whether the information is read directly from my

database or on the fly aggregated

00:03:40 because in essence the flow of the program is not impacted by the way this is done.

00:03:51 Now then there is a small caveat to it because sometimes such calculation would now happen

in a loop where the code was not done well.

00:03:57 You know, sometimes there is a loop where you access the same information a thousand

times, and then obviously you're reading a thousand times.

00:04:04 Well, that's just via the buffer, that's not so important. But if you calculate a thousand times,

then obviously this is not as good.

00:04:12 So you would rather change this very technically where you calculate it outside of the loop and

then bring the result as a reference into the loops.

00:04:18 So these kinds of small technical exercises in few very exceptional cases are required. But

else the code that does the reading access to these aggregates can stay unchanged and will

still work.

00:04:29 That is really actually great because this is the majority of database accesses that you do.

00:04:33 And then there are few instances where you may update or insert something in the very same

tables and, yes, that is also no longer required.

00:04:41 So these are things that you would omit and, with these measurements, you can actually bring

along code into this new world to work on top of this new data model.

00:04:51 Now actually, how does the new data model arrive in your system? And you know, if you are

on Enhancement Package 7, maybe already a Suite on HANA customer,

00:04:58 then obviously you would not want to undergo again a complete new Enhancement Package

upgrade or whatever big-time technical project to go there.

00:05:07 And this is why we came actually up with a way of talking about an exchange add-on. So what

is an exchange add-on?

00:05:14 The idea is that you can bring in that Simple Finance, which we started with, actually into an

existing Enhancement Package 7 system, and then without re-doing everything.

00:05:26 So you can maybe have a picture of, well, a lot of the Enhancement Package 7 layer, which is

depicted yellow here, will really stay equalish. You bring in just an exchange for the Financial

pieces.

23

00:05:38 And this kind of a mini Enhancement Package or a mini Service Package, if you wish, for just

that piece of code that is even getting improved.

00:05:46 So by that we really can contain very much the effect of moving a system to Simple Finance or

S/4 as the simplifications are coming along with it.

00:05:58 And with these two measurements, we really found an experience of how migrations at

customers can really move.

00:06:04 And now, the next slide will actually talk a little bit about these phases and I will try to make a

little bit lively, hopefully,

00:06:11 what our customers are experiencing that have started with us on this journey, on this

roadmap, and where they're standing.

00:06:17 So if you start today, maybe on a traditional database and a release before, obviously to move

into that direction you will have to move up. Right?

00:06:17 We can only bring this kind of innovation on the latest release, which by now is Enhancement

Package 7 for the ERP.

00:06:32 And an Enhancement Package upgrade or even a release change if you come from 46c or

other older releases, these are steps that they very well know. Right?

00:06:40 Most likely you immediately have an idea of what that project would look like and what that

would cost.

00:06:45 Going to Suite on HANA actually includes a database migration into this step.

00:06:50 Database migration in itself - most of you have done in the one or the other case. So also there

you will have a feeling of what the effect is.

00:06:57 And actually what our customers are experiencing is that those things they don't add to each

other in terms of length; most are doing that in parallel.

00:07:05 And by that, the actual time of this project is in the majority driven by the Enhancement

Package timelines.

00:07:13 So what we have seen is that 75% of all the customers that move to Suite on HANA finished

this project within 6 months, with the fastest of those being even just under a month.

00:07:23 That was a very small system, not modified. So obviously, it's always the simple cases that

start with that.

00:07:28 But what that tells you is that actually the Enhancement Package upgrade or the release

change are driving that effort.

00:07:33 Now why is that the case? It is because the database migration as a project has two main

pieces that we have to cover.

00:07:42 One is testing, again, so if you exchange a database, you really want to make sure that it is

running again.

00:07:48 But testing is also a piece of the Enhancement Package upgrade so that's not add it, that is

just something that you had done anyway.

00:07:54 And then there is overall this task of minimizing the downtime in the upgrade window that you

have,

00:07:59 which is obviously something that in the database migration is much longer than for the

24

Enhancement Package.

00:08:03 So this is really the additional thing that you need to cover in this process but it's not that you

have to do it afterwards or something.

00:08:12 So you can do that quite a bit in parallel and also, what we have done is we have improved the

software update manager to include the database migration option such that it's combined.

00:08:23 And also, we have introduced some near-zero downtime capabilities in there, where you have

some uptime elements, where big tables are getting moved and so on, which actually shrinks

the effort in there as well.

00:08:33 So I don't want to dwarf it: It's enough work and you better make sure and test it and so that it

really works but it's a very feasible process that our customers are doing.

00:08:41 And then you bring in the simplification, and I talked about the exchange add-on being one

element of that. And there, one piece of information: SAP has actually gone this route with

these two steps.

00:08:50 That very second step took us 55 days of work, right. So elapse time of 55 days where we

introduced Simple Finance into a Suite on HANA system,

00:09:00 which again tells you that this idea of the compatibility views really works and that you have a

way of migrating.

00:09:07 Now we did this as two steps. Those can be combined so you are not forced to do that in

sequence.

00:09:12 It's actually a choice as a customer which of these steps you would either do in a sequence or

combined. I think that's also very much subject to your overall landscape planning.

00:09:23 You have upgrade windows, you have existing plans so it's not like it's just the one that is

supported while it may make sense to just introduce the database migration along with an

anyway planned upgrade.

00:09:33 The move to simplification maybe changes the way you would lay out the project completely.

00:09:38 So in that sense you really have a way to play but both of those steps are actually very

feasible,

00:09:45 and also it's good - or not good, it's okay to do them separately because the efforts build up on

each other.

00:09:52 So it's not like you would re-do a lot of things that you've done in the first step or so on. So they

really neatly fit to each other.

00:09:58 And then we also said S/4HANA will be available in the cloud, so we have this notion of the

managed cloud and the public cloud.

00:10:05 And there we are also building an upgrade experience which, if you think about it, it will

depend on what actually your strategies are.

00:10:13 But most likely not necessarily a full system move into the cloud but maybe rather a carve-out

scenario for that scope that is meaningful in the cloud,

00:10:22 because the discussion of whether something is in the cloud or is on-premise is not only a S/4

discussion because it actually depends on the way that you want to have control over a

system.

00:10:32 In the cloud, you very much adhere to standards; on premise you can be very specific. You

25

may have other ideas of how to modify this system or extend it to your very needs.

00:10:42 But anyway, there are many reasons and arguments that you would balance, and then we are

coming up with tools that provide the capability of taking a part of your system into the cloud.

00:10:42 And then we will also invest, and this is why you see the SAP Labs Preview here, we will

invest in this kind of scenarios that then take the data into the cloud system.

00:11:01 And again, if you have been on any of the status, we can take the data even from non-S/4

systems and then bring those things to the cloud.

00:11:11 So, it is not necessarily a sequence of things that you would follow through if you go to the

cloud, but it's kind of the distinct steps that are different.

00:11:20 This is why the depiction is this way, but you could also go to the cloud directly from a non-

HANA system.

00:11:27 Now, we also talk about that we bring a lot of Fiori, a new user experience, into the system,

which in turn also has an impact, obviously, to the rollout of such a product.

00:11:38 Now you have to understand that there is a clear distinction between traditional SAPGUI-

based projects or projects that we are doing with Fiori.

00:11:47 Because these Fioris are very specific. So they have changed in terms of no longer serving

each purpose across all industries globally for all rows.

00:11:55 They are very specific to the need of individual users so they are actually, and I don't want to

stress the term, self-explanatory but it's going in that direction

00:12:04 because the complexity is of the interaction a human has with the system and not of all

potential interactions and by that, adopting Fiori is actually a different type of training

requirement as you traditionally have.

00:12:17 And with that, you really are then enabled for your own digital transformation by having really

achieved that your system is in in-memory,

00:12:27 is reduced in the data footprint, and then you can really start to evolve into the future and in-

memory world of business processes.

00:12:37 And with that, I would thank you for listening. I hope it was interesting to you and it showed you

that actually we really are taking the migration experience seriously.

00:12:47 We really give you an experience that you can come along with us on this journey of great

innovation. Thank you so much.

26

UNIT 7

00:00:12 Welcome to Unit 7 of this openSAP course. My name is Steffen von Berg, I'm Vice President

and Head of the Customer Engagement in the Cloud.

00:00:25 So, what I want to talk about today is how customers can go easily into the cloud, how that

journey might look like.

00:00:36 And what I want to start with is a little bit about the customer situation itself.

00:00:43 So, many of our customers, they built up complex landscapes in the past. And this is

something which was not only driven by SAP,

00:00:53 it was driven by all of the software vendors. And now they have these huge and complex

landscapes.

00:01:01 And the burden they have now is that these landscapes, they need to be operated and that

means, they need a lot of resources to do that.

00:01:10 And resources does not only mean financial, it also means people. And getting experienced

people in the IT business is something which is not easy.

00:01:23 So, and now, there are requirements from these companies to the IT department to help the IT

department to innovate

00:01:34 because IT departments, they need to provide new solutions for new business ideas. And this

is something where a lot of companies struggle today.

00:01:45 They are not able to move fast enough because they need to operate their huge landscapes.

00:01:52 And then to change the huge landscape, this is like driving a supertanker, so a big ship, a

steamer. And that is something which is not easy to do.

00:02:07 So the question is, how can we help with the S/4HANA to innovate?

00:02:16 How can we provide to customers' innovation and an easy way to do so. And I want to show

you what we can do.

00:02:27 And there are, in general, two aspects. One aspect is customers want to go to the cloud. And

this is what is actually already done within SAP, within our HANA environment.

00:02:39 So what we have there, we have more than 210 customers who already put their entire

business into the HANA Enterprise Cloud.

00:02:57 So and it's already driven under the HANA perspective, a lot of innovation is built in already.

And these customers can already focus on innovation

00:03:07 because with their highly skilled resources they are not forced to operate their solution

anymore,

00:03:15 they can think about new ideas and new innovation for their company to help them.

00:03:24 A very good example is Nissha. Nissha is a Japanese customer who is focused on producing

touchpads and printing.

00:03:34 This customer needs to work in entire new businesses and he needs to focus on the

innovation topic massively.

00:03:44 So what he did, he put his entire landscape into the SAP Cloud under the HANA platform.

00:03:55 And that was extremely successful. So within three months, this entire project was done, and

27

we have massively improved performance

00:04:07 for all of their reporting aspects and for their overnight batch processing which is a very, very

vital part of their operating business.

00:04:20 Improving that means that these customers can think about new things. And we have some

other examples here, like McLaren, like the German football, Schaidt Innovations and some

others.

00:04:34 So these customers already realized that they need their resources for innovation topics, and

that's what they were going to do with us.

00:04:45 And now let's come to an example of how a customer can do that. When we start on the left-

hand side and, this is what I said before,

00:04:57 this customer has a huge ERP landscape on any DB, let's say. So the question is, how can

that customer move forward?

00:05:07 Let's say he has a new idea. He wants to sell some new shoes. And that means, because he

did not do that before;

00:05:18 he sold, I don't know, clothes or things like that. And now he starts selling shoes because he

has a really good idea.

00:05:27 This is a good idea and he needs to have a system for that. Doing that in his old landscape

means he cannot move fast enough.

00:05:37 Now the question is, what can we do? And this is very, very easy. So, this customer can take

from our side an S/4HANA solution in the cloud, in a start environment as a first step.

00:05:55 So there he can start a project which will only take a few weeks. The easy thing is that in the

future, and here we have a lab, an SAP lab preview,

00:06:10 he can migrate the data he really needs, and that means the business data and the master

data, into that new system and only the data he needs for that new business.

00:06:23 And on top of this, he can get predefined processes for certain lines of business or for a

specific industry

00:06:33 already from us combined with some services to build that up in an entirely new system.

00:06:39 So, there are no resources necessary because it runs in the cloud. We will operate it from our

point of view and this is a very, very easy way to go.

00:06:56 On top of this, many of our partners have additional good ideas. So, when we talk about

Internet of Things and things like that

00:07:04 and you need to connect that with an S/4HANA, this can be done easily on our cloud platform.

00:07:12 So, the Cloud Start is a very, very easy way to start new businesses and to move forward to

the cloud and to make things easier.

00:07:24 When the project is finished, then the customer has still two options. He can take it back in his

on-premise environment.

00:07:39 So if he wants to keep this because it's so secret or he wants to modify it or whatsoever, he

can take it in his on-premise world and then move from there even faster.

00:07:54 Or, and this is I think a new way which is extremely interesting, he can use the production

cloud environment within SAP and can operate his S/4HANA completely in the cloud.

28

00:08:09 And this will be done by SAP then. And he can focus on the next innovation topic he wants to

drive.

00:08:16 So, the interesting thing is that we from SAP will come up with that innovation push. So all

three months, all six weeks, we will build in new innovations.

00:08:33 So the push will be there. And what we innovate, because we have good ideas also, and what

we innovate is then there. And there's nothing to do anymore.

00:08:44 And you just can make use of it. So, a new business is not only then a new business, it stays

an innovative business and that makes it extremely interesting in the cloud.

00:08:58 So to summarize that, with our Cloud Start environment you have a very fast availability

without risks. So you can drive a project within just a few months or days.

00:09:16 The migration of an existing solution to the new environment can be done easily.

00:09:20 And by the way, it's not only a carve-out of your environment, of your existing environment

which can be done.

00:09:29 You can bring your entire master data and business data into such a solution and start from

scratch because that is something many of our customers are thinking about.

00:09:40 They want to simplify. They want to use standards, and we provide these standards within the

S/4HANA solution.

00:09:50 And then they can leverage all the innovations which come from our side.

00:09:57 Very nice: There is no HANA knowledge necessary up from the beginning for our customers.

Many of our customers need to have their resources thinking on innovation.

00:10:09 Yes, you need to understand a little bit about HANA, even in the cloud, because you need to

understand that from a business point of view,

00:10:17 not so much from a technical point of view and not so much from an operations point of view

because we will do that in the cloud.

00:10:26 And this is a very, very easy way in my opinion. So, you can experience all the benefits we

have already built in in S/4HANA,

00:10:37 like you saw that in the previous openSAP courses, like the Simple Finance and all the other

benefits which come along with S/4HANA.

00:10:49 And you can use the Cloud Start as a project platform and decide later upon on premise or

managed private cloud.

00:11:01 So, thanks for your attention, and I hope this explains a little bit how you can move easily to

the cloud.

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UNIT 8

00:00:12 Hello and welcome to today's last unit of this openSAP course SAP S/4HANA fueling the

Digital Transformation.

00:00:21 My name is Sven Denecken and I am SAP's Global Vice President for SAP S/4HANA.

00:00:27 Next to strategy I am focusing on the co-innovation engagements with strategic key clients and

partners -

00:00:34 a valuable source of sensing the trends, validating what we do and influence what we need to

do.

00:00:41 Now, let's start with the unit. The purpose of this presentation is to provide you with a

comprehensive overview on the business

00:00:51 and IT value of SAP S/4HANA, our next-generation Business Suite, and how customers,

partners, and influencers can co-innovate with us.

00:01:03 I also hope this final session makes some appetite for the deep-dive course which will be

coming soon.

00:01:11 But let's start with the fundamental question at hand: Why SAP S/4HANA?

00:01:19 SAP S/4HANA is fueling the digital transformation based on radical simplification, which is

needed to drive business outcome.

00:01:30 Companies need to reduce complexity to free up resources for innovation. But in order to

tackle this complexity, we had to first find it.

00:01:41 So, let's look at where complexity typically lies in organizations today. It starts with scattered

information and data duplication

00:01:52 that create different versions of the truth, complicating decisions and making it difficult for

enterprises to bring good ideas to market quickly and profitably.

00:02:04 It then moves on to business processes that have been historically built around long-running

batch processes and designed, as workarounds for missing performance are needed.

00:02:17 In fact, according to experts, organizations can spend between 40 and 80% of their time on

non-value-added activities sucking up time and energy from solving real business problems.

00:02:34 And finally, technology, where data explosion has shown the limits of current technology to not

only run the day-to-day business

00:02:45 but also innovate, for example, the problem of separate systems for transactions and analysis.

They create more data latency.

00:02:56 If not mastering, the increasing complexity can create costly complications. In fact, the

research indicates that businesses lose 10% of profit each year due to hidden cost and

complexity.

00:03:13 It is clear to see that new technology can and sometimes is disruptive. This is precisely why we

need to talk about digital transformation.

00:03:24 Driven by the combination of ever-growing digitization and evolving consumer demands, digital

transformation is the use of new technology to drive significant business improvements.

00:03:36 This includes capitalizing on new opportunities as well as effectively transforming existing

businesses.

30

00:03:45 In this new world, the CIO's focus is fundamentally changing because the businesses are

changing.

00:03:54 Managing the traditional IT scope is no longer sufficient. Instead, new priorities need to be

tackled.

00:04:02 For the CIO to stay relevant, he or she needs to embrace these changes and talk business or

become relegated to a pure non-strategic operations role.

00:04:16 CIOs need to re-think their strategic purpose in the organization and start a journey to achieve

the strategic purpose.

00:04:26 This strategic purpose has to be well aligned with all the business stakeholders.

00:04:34 Companies need to achieve digital transformation based on disruptive technology to gain

higher competitiveness.

00:04:43 And this will need a handshake between line of business and IT.

00:04:49 Customers today are looking for ways to transform their business and cater to our digitized,

networked, and complex world.

00:05:00 They need to deliver services rather than products, and everything needs to happen fast. So

the innovation with speed is key.

00:05:09 But it is not speed only. Customers are looking to improve their decisions, their processes, and

their products next.

00:05:19 Ultimately, they need to cater towards new business models. This is where we come in with

simplifying the core of their business, with SAP S/4HANA.

00:05:32 The innovation adoption model will need to transform from a push model based on static

aggregation,

00:05:41 something someone pre-thought and is never as flexible as real-time reality does deserve,

00:05:50 towards a pull where, based on the lowest level of data granularity, you can aggregate on the

fly, which results in the ability to ask the system any question you have in real time.

00:06:06 So, this ultimately leads to a model where business models get flexible, where transactional

data and analytical are one,

00:06:17 where external data and unstructured data can be combined, where connections to the

business networks are a given.

00:06:27 Just think about topics like Industry 4.0 and the Internet of Services and Things - without a

simplified, open and real-time core: very hard to achieve.

00:06:41 The renewal of the system of record does build the basis for the new solutions for end users:

00:06:50 Architected for a true in-memory database with a simplified data structure,

00:06:58 delivering one function per requirement and processing a higher amount of data faster than

ever.

00:07:07 This enables to build new kind of solutions which are really end-user centric, with insight to

action which actually solves problems which were invisible before,

00:07:17 to concentrate on problems and not on data entries, to effectively collaborate with colleagues

in a business context,

31

00:07:27 and to collaborate and work with business partners outside your company. Let's highlight some

examples.

00:07:36 Let's take Simple Finance, the spearhead of SAP S/4HANA: More than 65% faster financial

close processes,

00:07:45 more than 50% faster foreign currency revaluation, 1,000x faster reporting (from 15 minutes to

1 second), ultimately transforming how Finance will look like in the future.

00:07:59 Or let's take Internet of Services where we see three major categories: Services to improve

business processes,

00:08:08 content that enhances business processes, and ultimately, content that changes the business

process.

00:08:12 And we, of course, also are working on very important topics like Simple Logistics,

00:08:24 but let's dive a little bit deeper on that point and elaborate on some of the concrete examples

from Logistics and Manufacturing that we are working on as we speak.

00:08:36 Starting with the user experience for sure because that brings an increased user productivity

through role-based cockpits, which are actually much smarter, and real-time decision support.

00:08:48 And that decision support helps with proactive notifications of issues, a pre-evaluation of

solution proposals, including simulation of all proposals before application.

00:09:03 Then, a KPI-driven process control with intuitive graphics for faster insights and interventions,

00:09:11 with KPIs that are constantly recalculated and refreshed on the fly, always up-to-date views on

demand and supply situation across all bill of material levels.

00:09:23 This leads to real-time execution with one-click execution of a solution. Process and data

redundancies are eliminated as all aggregates and historical tables have been dropped.

00:09:37 Complex processes like ATP, backorder processing are executed directly on the in-memory

database,

00:09:45 thanks to SAP HANA delivering the real business value. And all of this is available today.

00:09:53 Finally, let us talk about how we come to some of those innovations: via SAP S/4HANA

customer co-innovation program, which is more a state of mind than a program itself.

00:10:07 The simplification involves that paradigm shift. So, what is the motivation? The motivation is

actually, we want business impact-oriented conversations.

00:10:19 Therefore, we need to engage with thought leaders and business experts and IT -

00:10:24 to achieve the goals fast together, to improve the overall experience and open the path to fast

innovation adoption.

00:10:33 We need, together, to optimize those business processes and create best practices, but also

invent new processes.

00:10:41 We need to reduce the cost and risk of onboarding and adoption while decreasing the efforts.

00:10:49 So what is the value? The value and the benefit for the customer is very clear: Rapid time-to-

value, a reduced risk, get better services,

00:10:59 influence our strategy, and or course, benefit from this influence, benefit from the best practice

that comes out of it.

32

00:11:08 For SAP, we get faster and better customer experience. We get that meaningful feedback that

we need to make the right decisions as we're going to deliver every quarter, cloud first but not

cloud only.

00:11:20 We want to better understand and anticipate the business drivers and, of course, ultimately we

want and we are improving product quality and the business impact.

00:11:30 That's why we invite you. So let me sum it up. Please check our homepage sap.com/s4hana

always and frequently for further information.

00:11:45 Make sure that you frequently check the assets in the course repository for upcoming very

valuable information which we're constantly updating.

00:11:54 And check back for the openSAP S/4HANA Deep Dive course which actually is coming up

very soon.

00:12:03 Thanks for listening in, and I hope you enjoyed this course.

www.sap.com

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