Table of Contents

Open all
Close all
Foreword from Uwe Grigoleit
19
Foreword from Cameron Art
21
Preface
23
Why Read This Book?
23
Audience
24
Structure of the Book
24
Acknowledgments
27
1 The Digital Transformation: An Introduction
29
1.1 Digital Transformation and the Intelligent Enterprise
30
1.2 Business Value Scenarios
36
1.2.1 Customer Centricity and Experience
39
1.2.2 Customer Insight and Improved Decision-Making
46
1.2.3 Digitally Enabled Supply Chain
50
1.3 Architecture at a Glance
56
1.4 Deployment Options
61
1.4.1 On-Premise
61
1.4.2 SAP S/4HANA Cloud
68
1.4.3 Hybrid Model
71
1.5 Cloud Vendor
73
1.6 Integration
74
1.7 Summary
76
2 Finance
79
2.1 Industry Pain Points and SAP S/4HANA Benefits
79
2.1.1 Integration of Information
80
2.1.2 Enterprise Cost Reductions
82
2.1.3 Measuring Business Performance
82
2.1.4 Optimize Planning, Budgeting, and Forecasting
84
2.1.5 Continuous Finance Process Improvements
84
2.1.6 Provide Inputs to Enterprise Strategy
86
2.1.7 Develop Talent in the Finance Organization
87
2.2 Key Functionalities
88
2.2.1 Universal Journal
88
2.2.2 Material Ledger and Transfer Pricing
93
2.2.3 New Asset Accounting
97
2.2.4 Cash Management
98
2.2.5 Business Planning and Consolidation
102
2.2.6 Group Reporting
109
2.2.7 Profitability Analysis
114
2.2.8 Central Finance
120
2.2.9 Real-Time Data and Soft Close
130
2.3 Finance in SAP S/4HANA Cloud
133
2.4 Outlook
135
2.5 Summary
137
3 Manufacturing
139
3.1 Industry Pain Points and SAP S/4HANA Benefits
139
3.2 Key Manufacturing Functionality
144
3.2.1 Product Master Optimization
144
3.2.2 Production Planning and Detailed Scheduling
144
3.2.3 Material Requirements Planning
145
3.2.4 Production Operations and Engineering
151
3.2.5 Complex, Discrete, and Component Assembly Manufacturing
153
3.3 Manufacturing in SAP S/4HANA Cloud
154
3.4 Outlook
157
3.5 Summary
158
4 Supply Chain
161
4.1 Industry Pain Points and SAP S/4HANA Benefits
161
4.2 Key Supply Chain Functionality
165
4.2.1 Data Model Simplification
165
4.2.2 Inventory Valuation and Advanced Available-to-Promise
166
4.2.3 Extended Warehouse Management
174
4.2.4 Transportation Management
184
4.2.5 Catch Weight Management
187
4.2.6 Quality Management
188
4.2.7 Commodity Management
188
4.3 Supply Chain in SAP S/4HANA Cloud
190
4.4 Outlook
192
4.5 Summary
193
5 Sales, Marketing, Commerce, and Service Management
195
5.1 Industry Pain Points and SAP S/4HANA Benefits
196
5.2 Key Sales Functionality
199
5.2.1 Data Model Simplification
199
5.2.2 Sales Order Fulfillment and Monitoring
200
5.2.3 Condition Contract Settlement
203
5.2.4 Foreign Trade
205
5.2.5 Credit Management and Revenue Accounting
205
5.3 Key Marketing and Commerce Functionality
206
5.3.1 Customer Relationship Management
206
5.3.2 Billing and Revenue Management
208
5.4 Key Service Management Functionality
209
5.4.1 Optimized Service and Service Master Data Management
209
5.4.2 Service Parts and Service Agreement Management
210
5.5 Sales, Marketing, Commerce, and Service Management in SAP S/4HANA Cloud
211
5.6 Outlook
212
5.7 Summary
213
6 Sourcing and Procurement
215
6.1 Industry Pain Points and SAP S/4HANA Benefits
215
6.2 Key Sourcing and Procurement Functionality
218
6.2.1 Operational Purchasing
219
6.2.2 Invoice and Payables Management
224
6.2.3 Sourcing and Contract Management
225
6.2.4 Supplier Evaluation and Analytics
226
6.2.5 Intelligent Procurement by Machine Learning
228
6.3 Sourcing and Procurement in SAP S/4HANA Cloud
229
6.4 Outlook
231
6.5 Summary
231
7 Research and Development and Asset Management
233
7.1 Industry Pain Points and SAP S/4HANA Benefits
234
7.2 Key Research and Development Functionality
236
7.2.1 SAP Innovation Management
236
7.2.2 SAP Portfolio and Project Management
237
7.2.3 SAP Commercial Project Management
238
7.2.4 SAP Product Lifecycle Costing
239
7.3 Key Asset Management Functionality
240
7.3.1 Maintenance Planning and Scheduling
240
7.3.2 Maintenance Operation and Execution
242
7.3.3 Mobile Asset Maintenance
243
7.4 R&D and Asset Management in SAP S/4HANA Cloud
243
7.5 Outlook
244
7.6 Summary
247
8 Analytics and Reporting
249
8.1 Evolution of Analytics
250
8.2 Operational Reporting
253
8.2.1 ABAP-Based Reports
254
8.2.2 Embedded Analytics
254
8.2.3 Native SAP HANA Applications
259
8.2.4 Embedded SAP Business Warehouse and SAP Business Planning Consolidation
260
8.3 Enterprise-Wide Reporting
262
8.3.1 SAP HANA Enterprise Analytics
263
8.3.2 SAP Business Warehouse on SAP HANA
264
8.3.3 SAP BW/4HANA
265
8.3.4 SAP Analytics Cloud
266
8.4 Reporting in a Hybrid Landscape
269
8.5 Cognitive Analytics
271
8.6 Big Data Analytics and Data Lakes
273
8.6.1 Data Lakes
273
8.6.2 SAP Vora
276
8.7 SAP Data Hub
277
8.8 Summary
280
9 Industry Solutions
281
9.1 Retail
281
9.1.1 Technical Simplifications
282
9.1.2 Available or Changed Functionality
284
9.1.3 Removed and Nonstrategic Functionality
289
9.1.4 Retail Integration
290
9.2 Fashion
292
9.2.1 Demand and Supply Segmentation
292
9.2.2 Advanced Available-to-Promise
295
9.2.3 Stock Protection/Product Allocation
296
9.2.4 Supply Assignment
298
9.2.5 Pack Separately – Ship Together
299
9.2.6 Material Requirements Planning and Planned Independent Requirements
300
9.2.7 Fashion Manufacturing
301
9.2.8 Protected Species Management and Preference Management
303
9.2.9 Data Migration from SAP Apparel and Footwear
304
9.3 Oil & Gas
305
9.3.1 Technical Simplifications
305
9.3.2 Upstream and Downstream
307
9.3.3 Trader’s & Scheduler’s Workbench
308
9.3.4 Transportation and Distribution
309
9.3.5 Secondary Distribution
310
9.4 Outlook
311
9.5 Summary
311
10 SAP S/4HANA Cloud
313
10.1 Value Proposition
313
10.2 Core Functional Capabilities
315
10.3 Deployment
320
10.3.1 Fit-to-Standard
320
10.3.2 Deployment Resources
322
10.3.3 SAP Best Practices Explorer
325
10.3.4 Self-Service Configuration User Interface
326
10.4 SAP S/4HANA Cloud, Single Tenant Edition
326
10.4.1 Criteria for Choosing SAP S/4HANA Cloud, Single Tenant Edition
327
10.4.2 Single-to-Multitenant Migration
330
10.5 SAP CoPilot
332
10.6 Extensibility
333
10.7 Content Lifecycle Management
334
10.8 Summary
337
11 SAP S/4HANA and the SAP Landscape
339
11.1 Sourcing and Procurement: SAP Ariba
340
11.1.1 Sourcing and Contracts
341
11.1.2 Requests and Purchases
343
11.1.3 Invoices and Payments
345
11.1.4 SAP Ariba and SAP S/4HANA
347
11.2 Contingent Workforce Management: SAP Fieldglass
350
11.2.1 Vendor Management System
351
11.2.2 SAP Fieldglass and SAP S/4HANA
352
11.3 Travel and Expense Management: SAP Concur
353
11.3.1 Spend Management
354
11.3.2 SAP Concur and SAP S/4HANA
356
11.4 Human Resources: SAP SuccessFactors
357
11.4.1 Employee Data
357
11.4.2 Talent Management
357
11.4.3 SAP SuccessFactors and SAP S/4HANA
360
11.5 Customer Experience: SAP C/4HANA
363
11.5.1 Marketing
366
11.5.2 Commerce
367
11.5.3 Sales
368
11.5.4 Services
370
11.5.5 Customer Data
372
11.5.6 SAP C/4HANA and SAP S/4HANA
373
11.6 Master Data Management: SAP Master Data Governance
374
11.7 Supply Chain Planning: SAP Integrated Business Planning
381
11.7.1 Sales and Operations Planning
381
11.7.2 Demand Planning
382
11.7.3 Inventory Planning
383
11.7.4 Response and Supply Planning
383
11.7.5 Control Tower
386
11.7.6 SAP Integrated Business Planning and SAP S/4HANA
386
11.8 Summary
387
12 SAP S/4HANA Architecture
389
12.1 The Journey from SAP ERP to SAP S/4HANA
389
12.1.1 The Evolution of SAP S/4HANA
389
12.1.2 SAP S/4HANA as the Digital Core
396
12.1.3 Integration of SAP Products in SAP S/4HANA
397
12.1.4 The Road Map to SAP S/4HANA and Innovations
400
12.2 SAP HANA Platform
404
12.2.1 SAP HANA Database
405
12.2.2 Virtualization
408
12.2.3 Scalability
414
12.2.4 Recoverability
416
12.2.5 SAP HANA Operations
423
12.2.6 SAP HANA Logical Deployment Options
431
12.2.7 SAP HANA Platform Services
434
12.3 SAP S/4HANA Security
437
12.4 SAP S/4HANA Core Data Models
441
12.5 User Interface and User Experience
442
12.6 Data Lifecycle Management
445
12.7 Development and Operations
447
12.8 Summary
452
13 Extensions with the SAP Cloud Platform
453
13.1 Business-Driven Development
453
13.1.1 Connecting People and Data
455
13.1.2 Building Differentiating Cloud Apps
456
13.1.3 Integrate Apps and Data
457
13.1.4 Extending Core and Software-as-a-Service Solutions
458
13.2 SAP Cloud Platform
459
13.3 Extensibility Options for the Intelligent Suite
461
13.3.1 In-App Extensibility
464
13.3.2 Classic Extensibility
468
13.3.3 Side-by-Side Extensibility
468
13.4 SAP Cloud Platform and SAP Leonardo
471
13.5 Summary
472
14 SAP Leonardo
473
14.1 The Intelligent Enterprise and SAP Leonardo
473
14.2 Internet of Things
477
14.3 Machine Learning and Robotic Process Automation
483
14.4 Blockchain
487
14.5 Big Data
490
14.6 SAP Leonardo Use Cases
493
14.6.1 Use Case 1: Consumer Packaged Goods Industry
493
14.6.2 Use Case 2: Oil and Gas Asset Maintenance for Upstream Plants
496
14.7 Summary
499
15 Adoption Paths
501
15.1 Assessing Your Adoption Options
503
15.1.1 SAP Readiness Check
503
15.1.2 Business Scenario Recommendations
505
15.1.3 SAP S/4HANA Value Advisor
505
15.1.4 SAP Transformation Navigator
507
15.1.5 Sizing Requirements
507
15.2 New Implementation
508
15.2.1 Adoption Approach
509
15.2.2 Considerations
511
15.2.3 SAP S/4HANA Migration Cockpit
512
15.3 System Conversion
516
15.3.1 Adoption Approach
518
15.3.2 Considerations
521
15.3.3 SAP Conversion Software, Tools, and Accelerators
522
15.3.4 SAP S/4HANA Conversion Prerequisites
535
15.3.5 Minimizing Downtime
543
15.4 Landscape Transformation
547
15.4.1 Adoption Approach
549
15.4.2 Considerations
550
15.5 Housekeeping Activities
551
15.6 Summary
553
16 Implementation Tools
555
16.1 What Is SAP Activate?
555
16.2 SAP Activate Methodology
560
16.2.1 Prepare
561
16.2.2 Explore
562
16.2.3 Realize
564
16.2.4 Deploy
564
16.2.5 Quality Gates
565
16.3 SAP Best Practices
566
16.4 SAP Activate Tools
569
16.4.1 Self-Service Configuration
570
16.4.2 Expert Configuration
571
16.4.3 SAP Solution Builder Tool
571
16.4.4 SAP Solution Manager
572
16.5 SAP Model Company
573
16.6 Summary
578
17 Building the Business Case
579
17.1 Common SAP S/4HANA Business Case Challenges
580
17.2 Value Dimensions
581
17.3 Alignment to Stakeholders and Business Outcomes
583
17.4 Proven Process for Building a Case for Change
585
17.4.1 Recognize the Need
586
17.4.2 Frame the Opportunity
587
17.4.3 Conduct Discovery
588
17.4.4 Assess the Value
591
17.4.5 Validate Proposal
597
17.5 Develop Your IT Road Map
599
17.5.1 Engage Phase: Analyzing the Current Mode of Operations
602
17.5.2 Envision Phase: Exploring the Target Operational Model
602
17.5.3 Evaluate Phase: A Deep Dive into the Transformation Approach
603
17.5.4 Enable Phase: Build Your Road Map
604
17.6 Valuable Lessons Learned
604
17.7 Summary
605
18 Customer Case Studies
607
18.1 Multinational Industrial Company
607
18.1.1 Vision
609
18.1.2 IT Project
610
18.1.3 Benefits
610
18.1.4 Path Forward
611
18.2 Multinational Service Company
612
18.2.1 Vision
612
18.2.2 IT Project
613
18.2.3 Benefits
613
18.2.4 Path Forward
616
18.3 Manufacturing Company
616
18.3.1 Vision
617
18.3.2 IT Project
617
18.3.3 Benefits
618
18.3.4 Path Forward
619
18.4 Food Industry Group
619
18.4.1 Vision
619
18.4.2 IT Project
620
18.4.3 Benefits
621
18.4.4 Path Forward
621
18.5 Automotive Company
621
18.5.1 Vision
621
18.5.2 IT Project
622
18.5.3 Benefits
622
18.5.4 Path Forward
623
18.6 Summary
623
The Authors
625
Contributors
627
Index
629