Preface

17

Target Audience

17

How to Read This Book

17

How This Book Is Organized

18

Acknowledgments

20

1 Introduction

21

1.1 Current ERP Challenges

21

1.2 A New ERP Paradigm: Cloud ERP

25

1.2.1 SAP S/4HANA Cloud: The New ERP Concept

25

1.2.2 Composable Applications and Industry- and Scenario-Based Applications

26

1.3 SAP S/4HANA: Deployment Options

29

1.3.1 Introduction

29

1.3.2 Public Cloud

31

1.3.3 Private Cloud

32

1.3.4 Hybrid Cloud

32

1.4 SAP S/4HANA Cloud Use Cases and Business Value

33

1.4.1 Strategic Business Value

33

1.4.2 Operational and Financial Benefits

37

1.4.3 The New Digital Reality

40

1.5 SAP S/4HANA Cloud Solution Architecture

41

1.5.1 Cloud Qualities

41

1.5.2 Solution Architecture

43

1.5.3 Multitenancy and Zero Downtime

46

1.5.4 Scalability and Elasticity

48

1.6 Summary

50

2 The Intelligent Enterprise Suite

51

2.1 From the Monolithic ERP to the Intelligent Suite

51

2.1.1 Intelligent Enterprises

52

2.1.2 Starting Situation and Market Demands

53

2.1.3 Intelligent Enterprises as Integrated Enterprises

54

2.1.4 Suite Qualities

56

2.1.5 Further and Updated Guidance

59

2.2 End-to-End Business Processes

60

2.2.1 Strategic Significance for SAP S/4HANA Cloud

60

2.2.2 SAP Reference Business Architecture

61

2.2.3 Business Process-Driven Software Development at SAP

63

2.3 SAP Business Technology Platform

64

2.3.1 Platform Business Models, Platform Types, and SAP Business Technology Platform

65

2.3.2 SAP Business Technology Platform Capabilities

66

2.3.3 Continuous Technical Consolidation and Evolution

69

2.3.4 Development and Extension Options

70

2.3.5 Usage Model for Organizations and Partners

71

2.3.6 Partner and Organization Enablement

72

2.4 Summary

73

3 Intelligent Technologies

75

3.1 Situation Handling

76

3.1.1 Situation Handling: An Example

76

3.1.2 Proactive User Support

77

3.1.3 Tracking and Analysis

78

3.1.4 Intelligent Situation Automation and Machine Learning Concept

78

3.1.5 Configuration and Adaptation

80

3.2 Robotic Process Automation

80

3.2.1 Background: Architecture and Solution Components

80

3.2.2 Addressed Business Challenges and Business Value

82

3.2.3 SAP Best Practices Packages Providing Prebuilt Bots

83

3.3 Machine Learning and Predictive Analytics

84

3.3.1 Approaches to Machine Learning

86

3.3.2 Solution Architecture

89

3.4 Internet of Things

90

3.4.1 Main Services

90

3.4.2 Internet of Things-Enabled Business Processes in SAP S/4HANA Cloud

92

3.5 Intelligent Technologies: An Example

94

3.6 Summary

96

4 User Experience

97

4.1 SAP Fiori Design System

97

4.1.1 Introduction to SAP Fiori

97

4.1.2 SAP Fiori and SAP S/4HANA Cloud

98

4.1.3 Your Personal Entry Point: The SAP Fiori Launchpad

100

4.1.4 Useful Services Available Everywhere

101

4.1.5 Apps

104

4.1.6 Bringing Artificial Intelligence to the User Experience

108

4.2 Mobile User Experience

109

4.2.1 Mobile Web Experience of an Inventory Manager

110

4.2.2 Mobile Web Experience of an Internal Sales Representative

111

4.2.3 Native Mobile Apps

113

4.2.4 SAP SDK for iOS and SAP SDK for Android

115

4.3 User Interface Adaptation

115

4.3.1 Key User Adaptation

115

4.3.2 End User Personalization

119

4.4 Summary

122

5 Analytics

125

5.1 Embedded Analytics and Enterprise Analytics

125

5.1.1 Embedded Analytics Enabled by SAP Fiori and SAP Analytics Cloud

127

5.1.2 Enterprise Analytics Using SAP Analytics Solutions

130

5.2 Embedded Analytics in SAP S/4HANA Cloud

132

5.2.1 Business User Persona

132

5.2.2 Functions for Business Users

133

5.2.3 Analytics Specialist Persona

141

5.2.4 Custom Queries, Reports, and KPIs

143

5.3 Architecture and Integration with Other SAP Analytics Solutions

148

5.3.1 Analytics Architecture of SAP S/4HANA Cloud

149

5.3.2 ABAP Core Data Services Used for Analytics in SAP S/4HANA Cloud

152

5.3.3 Data Extraction to SAP BW/4HANA and SAP Data Warehouse Cloud

154

5.3.4 SAP Analytics Cloud

154

5.4 Summary

156

6 Business Capabilities

159

6.1 Sourcing and Procurement

159

6.1.1 Process Overview

159

6.1.2 Service Procurement

161

6.1.3 Sourcing

162

6.1.4 Operational Procurement

164

6.1.5 Machine Learning-Based Purchasing Functionality in SAP Business Technology Platform

167

6.1.6 Analytics in Sourcing and Procurement Functionality: Insight to Action

169

6.2 Manufacturing

172

6.2.1 Supported Production Modes

172

6.2.2 Demand-Driven Production Planning

174

6.2.3 Integrated Production Scheduling

175

6.2.4 Transparent Production Operations

176

6.2.5 Embedded Production Execution and Integrated Production Execution

179

6.2.6 Repetitive Manufacturing

181

6.2.7 Transparent Material Flow with Kanban

181

6.2.8 Outsourced Manufacturing

183

6.2.9 Quality Management

185

6.3 Logistics

186

6.3.1 Inventory Management

187

6.3.2 Logistics Execution

191

6.3.3 Integrated Warehouse Management

193

6.3.4 Order Promising: Available to Promise

195

6.3.5 Transportation Management

198

6.3.6 Handling Unit Management

198

6.3.7 Track and Trace: Batch and Serial Number Management

201

6.4 Sales

203

6.4.1 Product Vision and Direction

203

6.4.2 Quote to Order

205

6.4.3 Order and Contract Management

209

6.4.4 Customer Invoice Management

215

6.4.5 Customer Returns Management

216

6.4.6 Sales Analytics

218

6.5 Service

220

6.5.1 Introduction into Service

220

6.5.2 Types of Service

221

6.5.3 Service Order Management

224

6.5.4 Service Contract Management

229

6.5.5 In-House Repair

232

6.6 Maintenance Management

235

6.6.1 Intelligent Asset Management

236

6.6.2 Managing Asset Master Data

239

6.6.3 Plan-to-Optimize Assets

239

6.6.4 Operate-to-Maintain Assets

242

6.7 Finance

248

6.7.1 Universal Journal

249

6.7.2 Record-to-Report Process

250

6.7.3 Financial Planning and Analysis

254

6.7.4 Invoice-to-Pay and Invoice-to-Cash Processes

255

6.7.5 Treasury and Cash Management

257

6.8 Cross Capabilities

258

6.8.1 Advanced Variant Configuration

259

6.8.2 Billing and Revenue Management

264

6.8.3 Product Lifecycle Management

269

6.8.4 Enterprise Portfolio and Project Management

276

6.8.5 Environment, Health, and Safety

281

6.8.6 Product Compliance

282

6.9 Industry Variants

285

6.9.1 Professional Services

285

6.9.2 Discrete Manufacturing Industries

290

6.9.3 Process Manufacturing Industries

296

6.10 Industry Cloud

301

6.10.1 Industry Cloud Strategy

301

6.10.2 Key Concepts of SAP’s Industry Cloud

304

6.11 Globalization

306

6.11.1 Global Tax Management

307

6.11.2 Global Payments

312

6.12 Summary

314

7 Extensibility

315

7.1 In-App/Key User Extensibility

316

7.1.1 User Interface Flexibility

317

7.1.2 Field Extensibility

317

7.1.3 Business Logic Extensibility and Tracing

319

7.1.4 Custom Business Objects

320

7.1.5 Custom CDS Views

321

7.1.6 Lifecycle Management of In-App Extensions of SAP S/4HANA Cloud

322

7.1.7 Extensibility Templates

322

7.1.8 Exploring Extensibility Options

322

7.2 Side-by-Side Extensibility

323

7.2.1 Side-by-Side Extensions

323

7.2.2 SAP Extension Suite

326

7.2.3 Event-Driven Extensions

329

7.3 In-App Developer Extensibility

333

7.4 Localization Toolkit for SAP S/4HANA Cloud

334

7.4.1 Layers of a Localization

334

7.4.2 Localization Toolkit

335

7.4.3 Building a Community of Practice

336

7.5 Summary

336

8 Integration

337

8.1 Integration Strategy

337

8.1.1 Integration Rationale

337

8.1.2 Integration Best Practices

338

8.1.3 Cloud Integration Setup Procedure and Tooling

339

8.2 Application Programming Interfaces

340

8.2.1 SAP S/4HANA Cloud API Technologies

340

8.2.2 SAP S/4HANA API Request Process

341

8.2.3 Discovery of SAP S/4HANA Cloud APIs and Business Events

342

8.3 Master Data

343

8.3.1 Master Data Integration

343

8.3.2 Master Data Management

349

8.4 Summary

355

9 SAP S/4HANA Cloud Adoption and Lifecycle Management

357

9.1 Adoption Versus Implementation

357

9.2 SAP Activate Methodology

359

9.2.1 Key Concepts of SAP Activate

359

9.2.2 Components of SAP Activate

363

9.3 SAP S/4HANA Cloud System Landscape

367

9.4 Tool Support for SAP Activate

368

9.4.1 Business-Driven Configuration

369

9.4.2 SAP Cloud ALM

381

9.5 Phases of SAP Activate

390

9.5.1 Discover

390

9.5.2 Prepare

391

9.5.3 Explore

393

9.5.4 Realize

395

9.5.5 Deploy

398

9.5.6 Run

399

9.6 Identity and Access Management

400

9.6.1 Identity and Access Management and Authorizations

401

9.6.2 SAP Activate Methodology for Identity and Access Management

402

9.6.3 Phase Activities

403

9.6.4 SAP Cloud Identity Services

405

9.6.5 Integration

405

9.7 Data Migration

406

9.7.1 SAP S/4HANA Migration Cockpit

406

9.7.2 Data Migration Process and Project Considerations

409

9.8 Release Management

410

9.8.1 Release Upgrade Schedule

410

9.8.2 Plan and Perform Preparation Steps

411

9.8.3 Tools and Best Practices

412

9.8.4 Communication and Organizational Change Management Measures

413

9.9 Test Management

413

9.9.1 Testing SAP S/4HANA Cloud Implementations

414

9.9.2 Test Automation Tool for SAP S/4HANA Cloud

415

9.10 Embedded Learning and User Assistance

418

9.10.1 In-Application User Assistance

418

9.10.2 Embedded Enablement Content

419

9.10.3 “What’s New” Content

420

9.10.4 SAP Enable Now

421

9.11 Roadmap, Customer Influence, and Community

422

9.11.1 SAP Road Map Explorer

422

9.11.2 Customer Influence Opportunities

424

9.11.3 Experience Management in SAP S/4HANA Cloud with Qualtrics

426

9.11.4 SAP Community

429

9.12 SAP Services and Support Offerings

431

9.12.1 Kickstart for Cloud Onboarding

432

9.12.2 SAP Value Assurance for SAP S/4HANA Cloud

433

9.12.3 Quick-Start Service for SAP S/4HANA Cloud

433

9.12.4 Value Adoption Service for SAP S/4HANA Cloud

434

9.12.5 SAP Preferred Success

434

9.12.6 SAP Enterprise Support

435

9.13 Critical Success Factors

435

9.14 Summary

438

10 Conclusion

439

10.1 Additional Learning Resources

439

10.1.1 Learning Journey Guides

439

10.1.2 openSAP

440

10.1.3 SAP Learning Hub

441

10.1.4 SAP Global Certification

441

10.1.5 SAP Help Portal

442

10.2 Summary and Outlook

443

The Authors

445

Coauthors

447

Chapter 1

447

Chapter 2

447

Chapter 3

447

Chapter 4

447

Chapter 5

447

Chapter 6

448

Chapter 7

450

Chapter 8

450

Chapter 9

450

Chapter 10

451