Table of Contents

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Foreword from Matt Schwartz
19
Preface
21
Why Read This Book?
21
Audience
22
Structure of the Book
22
Acknowledgments
24
1 Introduction: From Digital Transformation to the Intelligent Enterprise
27
1.1 Cornerstones of the Intelligent Enterprise
28
1.1.1 Operational Automation and Real-Time Steering
29
1.1.2 Intelligent Technologies
32
1.2 Integrated Intelligent Enterprise
36
1.2.1 Layers of the Intelligent Enterprise
36
1.2.2 Next-Generation End-to-End Processes
38
1.2.3 SAP Business Technology Platform
50
1.2.4 Integration as an Enabler
52
1.3 Editions and Deployment Options
56
1.3.1 Deployment Overview
56
1.3.2 SAP S/4HANA
60
1.3.3 Private Cloud
61
1.3.4 SAP S/4HANA Cloud, Extended Edition
62
1.3.5 SAP S/4HANA Cloud
63
1.3.6 Deployment Considerations
64
1.4 Summary
66
2 Finance
67
2.1 The CFO Agenda
67
2.2 Industry Pain Points and SAP S/4HANA Benefits
70
2.2.1 Driving Integration of Information
70
2.2.2 Driving Enterprise Cost Reductions
72
2.2.3 Measuring Business Performance
72
2.2.4 Optimizing Planning, Budgeting, and Forecasting
73
2.2.5 Executing Continuous Finance Improvements
74
2.2.6 Providing Inputs to Enterprise Strategy
75
2.2.7 Developing Talent in the Finance Organization
76
2.3 Key Finance Functionality
77
2.3.1 Universal Journal
77
2.3.2 Material Ledger and Transfer Pricing
81
2.3.3 New Asset Accounting
84
2.3.4 Cash and Liquidity Management
86
2.3.5 Revenue Accounting and Reporting
91
2.3.6 Profitability Analysis
92
2.3.7 Predictive Accounting
96
2.3.8 Advanced Financial Closing
98
2.3.9 Financial Planning
100
2.3.10 Consolidation and Group Reporting
103
2.3.11 Advanced Intercompany Matching and Reconciliation
112
2.3.12 Tax and Compliance Management
116
2.3.13 Central Finance
121
2.4 Finance in SAP S/4HANA Cloud
147
2.5 Outlook
149
2.6 Summary
149
3 Manufacturing
151
3.1 Industry Pain Points and SAP S/4HANA Benefits
151
3.2 Key Manufacturing Functionality
155
3.2.1 Product Master Optimization
155
3.2.2 Production Planning and Detailed Scheduling
155
3.2.3 Material Requirements Planning
156
3.2.4 Production Operations and Engineering
161
3.2.5 Complex, Discrete, and Component Assembly Manufacturing
163
3.2.6 Process Manufacturing
165
3.2.7 Supply Chain Analytics
167
3.3 Manufacturing in SAP S/4HANA Cloud
167
3.4 Outlook
170
3.5 Summary
171
4 Supply Chain
173
4.1 Industry Pain Points and SAP S/4HANA Benefits
173
4.2 Key Supply Chain Functionality
176
4.2.1 Data Model Simplification
176
4.2.2 Inventory Valuation and Advanced Available-to-Promise
177
4.2.3 Extended Warehouse Management
185
4.2.4 Transportation Management
194
4.2.5 Catch Weight Management
197
4.2.6 Quality Management
198
4.2.7 Commodity Management
199
4.2.8 Stockroom Management
200
4.3 Supply Chain in SAP S/4HANA Cloud
201
4.4 Outlook
202
4.5 Summary
204
5 Sales, Marketing, Commerce, and Service Management
205
5.1 Industry Pain Points and SAP S/4HANA Benefits
205
5.2 Key Sales Functionality
208
5.2.1 Data Model Simplification
208
5.2.2 Sales Order Fulfillment and Monitoring
209
5.2.3 Condition Contract Settlement
214
5.2.4 Foreign Trade
215
5.2.5 Credit Management and Revenue Accounting
215
5.3 Key Marketing and Commerce Functionality
216
5.3.1 Customer Relationship Management
216
5.3.2 Billing and Revenue Management
217
5.4 Key Service Management Functionality
218
5.4.1 Optimized Service and Service Master Data Management
218
5.4.2 Service Parts and Service Agreement Management
219
5.5 Sales, Marketing, Commerce, and Service Management in SAP S/4HANA Cloud
220
5.6 Outlook
222
5.7 Summary
223
6 Sourcing and Procurement
225
6.1 Industry Pain Points and SAP S/4HANA Benefits
225
6.2 Key Sourcing and Procurement Functionality
228
6.2.1 Operational Purchasing
228
6.2.2 Invoice Management
232
6.2.3 Sourcing and Contract Management
234
6.2.4 Supplier Evaluation and Analytics
235
6.2.5 Intelligent Procurement with Machine Learning
236
6.3 SAP S/4HANA for Central Procurement
237
6.3.1 Central Procurement and Other SAP Solutions
239
6.3.2 Key Central Procurement Functionality
241
6.4 Sourcing and Procurement in SAP S/4HANA Cloud
242
6.5 Outlook
244
6.6 Summary
245
7 R&D and Asset Management
247
7.1 Industry Pain Points and SAP S/4HANA Benefits
248
7.2 Key Research and Development Functionality
250
7.2.1 SAP Innovation Management
250
7.2.2 SAP Enterprise Portfolio and Project Management
251
7.2.3 SAP Product Lifecycle Management
253
7.2.4 Product Compliance
254
7.3 Key Asset Management Functionality
256
7.3.1 Maintenance Planning and Scheduling
256
7.3.2 Maintenance Operation and Execution
258
7.3.3 SAP Asset Intelligence Network
259
7.3.4 Mobile Asset Maintenance
260
7.4 R&D and Asset Management in SAP S/4HANA Cloud
260
7.5 Outlook
261
7.6 Summary
264
8 Analytics and Reporting
267
8.1 Evolution of Analytics
268
8.2 Operational Reporting
270
8.2.1 ABAP-Based Reports
271
8.2.2 Embedded Analytics
271
8.2.3 Native SAP HANA Applications
277
8.2.4 Embedded SAP Business Warehouse and SAP Business Planning and Consolidation
278
8.2.5 SAP Analysis for Microsoft Office
279
8.3 Enterprise-Wide Reporting
280
8.3.1 SAP HANA Enterprise Analytics
281
8.3.2 SAP Business Warehouse on SAP HANA
282
8.3.3 SAP BW/4HANA
283
8.3.4 SAP Data Warehouse Cloud
284
8.3.5 SAP Analytics Cloud
285
8.3.6 SAP Digital Boardroom
286
8.3.7 SAP Profitability and Performance Management
288
8.4 Reporting in a Hybrid Landscape
289
8.5 Cognitive Analytics
291
8.6 Big Data Analytics and Data Lakes
292
8.7 SAP Data Intelligence
295
8.8 Summary
299
9 Industry Solutions
301
9.1 The SAP Strategy for Industry Solutions
301
9.1.1 SAP Industry Solutions in the Core
302
9.1.2 SAP Model Company
303
9.1.3 Industry 4.0 Solutions
304
9.1.4 SAP’s Industry Cloud
304
9.2 SAP S/4HANA Industry Sectors
305
9.2.1 Energy and Natural Resources
306
9.2.2 Service Industries
307
9.2.3 Consumer Industries
307
9.2.4 Discrete Industries
310
9.2.5 Financial Services
311
9.2.6 Public Services
313
9.3 Adapting to Global Change
314
9.4 Summary
315
10 SAP S/4HANA Cloud
317
10.1 Considerations and Value Proposition
317
10.2 Core Functional Capabilities
320
10.3 Deployment
325
10.3.1 Fit-to-Standard
326
10.3.2 Deployment Resources
327
10.3.3 SAP Best Practices Explorer
331
10.3.4 Self-Service Configuration User Interface
331
10.4 SAP S/4HANA Cloud, Extended Edition
332
10.4.1 Criteria for Choosing SAP S/4HANA Cloud, Extended Edition
333
10.4.2 Migration from SAP S/4HANA Cloud, Extended Edition to SAP S/4HANA Cloud
335
10.5 Content Lifecycle Management
337
10.6 Summary
339
11 SAP S/4HANA and the SAP Landscape
341
11.1 Sourcing and Procurement: SAP Ariba
342
11.1.1 Sourcing and Contracts
343
11.1.2 Requests and Purchases
344
11.1.3 Invoices and Payments
346
11.1.4 Intelligent Spend Management and SAP S/4HANA
348
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 Travel Spend Management
353
11.3.2 SAP Concur and SAP S/4HANA
356
11.4 Human Resources: SAP SuccessFactors
356
11.4.1 Employee Data
356
11.4.2 Talent Management
357
11.4.3 SAP SuccessFactors and SAP S/4HANA
359
11.4.4 SAP Human Capital Management for SAP S/4HANA
361
11.5 Customer Experience: SAP Customer Experience
362
11.5.1 Marketing
364
11.5.2 Commerce
366
11.5.3 Sales
367
11.5.4 Services
368
11.5.5 Customer Data
370
11.5.6 SAP Customer Experience and SAP S/4HANA
371
11.6 Master Data Management: SAP Master Data Governance
372
11.7 Supply Chain Planning: SAP Integrated Business Planning for Supply Chain
376
11.7.1 Sales and Operations Planning
376
11.7.2 Demand Planning
377
11.7.3 Inventory Planning
378
11.7.4 Response and Supply Planning
378
11.7.5 Control Tower
380
11.7.6 SAP IBP and SAP S/4HANA
381
11.8 Billing: SAP Billing and Revenue Innovation Management
381
11.8.1 Subscription Order Management
382
11.8.2 Convergent Mediation
383
11.8.3 Charging
383
11.8.4 Invoicing
383
11.8.5 Customer Financial Management
384
11.8.6 SAP Billing and Revenue Innovation Management and SAP S/4HANA
384
11.9 Summary
384
12 SAP S/4HANA Architecture
387
12.1 The Journey from SAP ERP to SAP S/4HANA
387
12.1.1 The Evolution of SAP S/4HANA
387
12.1.2 SAP S/4HANA as the Digital Core
393
12.1.3 Integration of SAP Products in SAP S/4HANA
394
12.1.4 The Roadmap to SAP S/4HANA and Innovations
398
12.2 SAP HANA Platform
402
12.2.1 SAP HANA Database
403
12.2.2 Virtualization
406
12.2.3 Scalability
409
12.2.4 Recoverability
410
12.2.5 SAP HANA Operations
417
12.2.6 SAP HANA Logical Deployment Options
423
12.2.7 SAP HANA Platform Services
427
12.3 Hyperscaler Architecture
430
12.4 SAP S/4HANA Security
431
12.5 SAP S/4HANA Core Data Models
435
12.6 User Interface and User Experience
436
12.7 Data Lifecycle Management
439
12.8 Development and Operations
441
12.9 Summary
448
13 Extensions
449
13.1 Business-Driven Development
449
13.1.1 Connecting People and Data
451
13.1.2 Building Differentiating Cloud Applications
451
13.1.3 Integrate Applications and Data
452
13.1.4 Extending Core and Software-as-a-Service Solutions
453
13.2 SAP Business Technology Platform
454
13.3 Extensibility Options for the Intelligent Enterprise Suite
457
13.3.1 Overview and Considerations
457
13.3.2 In-App Extensibility
460
13.3.3 Classic Extensibility
463
13.3.4 Side-by-Side Extensibility
464
13.4 SAP API Business Hub
466
13.5 Summary
467
14 Intelligent Technologies
469
14.1 The Intelligent Enterprise and SAP Business Technology Platform
469
14.2 Internet of Things
472
14.3 Artificial Intelligence
477
14.3.1 SAP AI Business Services Powered by Data Intelligence
478
14.3.2 SAP Conversational AI
478
14.3.3 SAP Intelligent Robotic Process Automation
479
14.3.4 Artificial Intelligence in SAP S/4HANA
482
14.4 Blockchain
483
14.5 Data Intelligence
484
14.6 Intelligent Technologies Use Cases
488
14.6.1 Use Case 1: Consumer-Packaged Goods Industry
488
14.6.2 Use Case 2: Oil and Gas Asset Maintenance for Upstream Plants
491
14.7 Summary
493
15 Adoption Paths
495
15.1 Assessing Your Adoption Options
497
15.1.1 SAP Readiness Check
497
15.1.2 Innovation Discovery for SAP Products
499
15.1.3 Process Discovery
500
15.1.4 SAP S/4HANA Business Value Advisor
501
15.1.5 SAP Transformation Navigator
502
15.1.6 SAP HANA Sizing Requirements
503
15.2 New Implementation
504
15.2.1 Adoption Approach
504
15.2.2 Considerations
505
15.2.3 SAP S/4HANA Migration Cockpit
507
15.3 System Conversion
511
15.3.1 Adoption Approach
512
15.3.2 Considerations
513
15.3.3 SAP Conversion Software, Tools, and Accelerators
515
15.3.4 SAP S/4HANA Conversion Prerequisites
525
15.3.5 Minimizing Downtime
532
15.4 Selective Data Transition
536
15.4.1 Adoption Approach
537
15.4.2 Considerations
538
15.5 Housekeeping Activities
540
15.6 Summary
541
16 Implementation Method and Accelerators
543
16.1 What Is SAP Activate?
543
16.2 SAP Activate Methodology
547
16.2.1 Prepare
548
16.2.2 Explore
549
16.2.3 Realize
550
16.2.4 Deploy
551
16.2.5 Quality Gates
551
16.3 SAP Best Practices
553
16.4 SAP Activate Tools
556
16.4.1 Self-Service Configuration
557
16.4.2 Expert Configuration
557
16.4.3 SAP Central Business Configuration
558
16.4.4 SAP Solution Builder Tool
558
16.4.5 SAP Solution Manager
558
16.5 SAP Model Company
559
16.6 Summary
564
17 Building the Business Case
565
17.1 Common SAP S/4HANA Business Case Challenges
566
17.2 Value Dimensions
568
17.2.1 SAP S/4HANA Core
570
17.2.2 The Intelligent Enterprise
572
17.3 Alignment to Stakeholders and Business Outcomes
573
17.4 Proven Process for Building a Case for Change
575
17.4.1 Recognize the Need
576
17.4.2 Frame the Opportunity
578
17.4.3 Conduct Discovery
579
17.4.4 Assess the Value
581
17.4.5 Validate Proposal
589
17.5 Develop Your IT Roadmap
591
17.5.1 Engage Phase: Analyzing the Current Mode of Operations
594
17.5.2 Envision Phase: Exploring the Target Operational Model
594
17.5.3 Evaluate Phase: A Deep Dive into the Transformation Approach
595
17.5.4 Enable Phase: Building Your Roadmap
596
17.6 Valuable Lessons Learned
596
17.7 Summary
597
18 Customer Case Studies
599
18.1 Multinational Industrial Company
599
18.1.1 Vision
601
18.1.2 IT Project
601
18.1.3 Benefits
602
18.1.4 Path Forward
602
18.2 Multinational Service Company
604
18.2.1 Vision
604
18.2.2 IT Project
604
18.2.3 Benefits
605
18.2.4 Path Forward
607
18.3 Manufacturing Company
608
18.3.1 Vision
608
18.3.2 IT Project
608
18.3.3 Benefits
609
18.3.4 Path Forward
610
18.4 Food Industry Group
610
18.4.1 Vision
610
18.4.2 IT Project
611
18.4.3 Benefits
612
18.4.4 Path Forward
612
18.5 Automotive Company
612
18.5.1 Vision
612
18.5.2 IT Project
613
18.5.3 Benefits
613
18.5.4 Path Forward
613
18.6 Life Sciences
614
18.6.1 Vision
614
18.6.2 IT Project
614
18.6.3 Benefits
614
18.6.4 Path Forward
615
18.7 Global Telecom Provider
615
18.7.1 Vision
615
18.7.2 IT Project
616
18.7.3 Benefits
616
18.7.4 Path Forward
617
18.8 Global Automobile Maker
617
18.8.1 Vision
617
18.8.2 IT Project
617
18.8.3 Benefits
618
18.8.4 Path Forward
618
18.9 Summary
619
The Authors
621
Contributors
623
Index
625