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SAP S/4HANA Deep Dive


WEEK 2, UNIT 1
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Hello and welcome to course week 2, Getting Started with SAP S/4HANA.

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In the first week we provided insights into the motivation behind S/4HANA,

00:00:24

the business value, and the strategy.

00:00:27

In this week you will learn how to get started, how to test-drive the solution,

00:00:32

and more details about architecture and roadmap.

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Okay, let us start with the Unit 1, Value Preposition Examples.

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S/4HANA offers innovative features to allow you to realize innovations and transform
processes.

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This is needed as we all live in the digital economy and we need to adopt fast.

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As a start, we will pick 4 features

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but I think they are some of the most significant ones.

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Number 1, S/4HANA and speed: Speed does matter.

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Ten times faster transactions and above 1,000 faster analytics

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allows us and you, for example, to leverage event stream processing.

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We can now enable a new process that includes, for example,

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what-if simulations and embedded advanced algorithms on real-time data.

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Second, S/4HANA and usability: And it is all about the end user.

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Everyone knows that the user experience of mobile devices

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is the de-facto expectation standard out there.

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With S/4HANA, SAP breaks with the conventional transactional approach

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and provides new generation user experience via SAP Fiori

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and allows to have, for example, app-like configurable user experience,

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Google-like search, predictive and simulation,

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embedded social collaboration - and this on any device.

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The third one is S/4HANA and simplicity

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because the complexity needs to hide behind the system.

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S/4HANA is fully built on the most advanced in-memory platform: SAP HANA.

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The SAP HANA platform is the engine for real-time processes.

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It is the platform to accommodate the new software generation for the digital economy,

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and S/4HANA has been dedicatedly architected for it.

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With this we are able to provide unmatched simplification

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for everyone to digitally transform his business,

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and, of course, as well big advantages for IT.

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So, let's look into some examples such as:

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simplified system landscape - one system for transactions and analytics;

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simplified user experience - consumer-grade ease of use,

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personalization and simplified guided configuration;

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simplified pre-packaged integration scenarios, and there is more.

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And as point 4, S/4HANA and agility: As the transformation does not stop,

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S/4HANA brings you flexibility in your digital transformation process.

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So let me mention some: Accelerated upgrades of new features, fast -

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in the cloud edition every quarter, in on prem, every 9 to 12 months,

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simplified changes use, like configuration, and, of course, easy changes;

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on-the-fly analytics - ask any question you have

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without a need to have someone to pre-think;

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a powerful cloud development platform as a service -

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enabling rapid deployment of individual and next-generation applications

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sized according to your business needs.

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And these are just some examples. You will discover much more in this course.

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So, let us look at an example to demonstrate you how S/4HANA can change processes

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and how you can accelerate innovations and offer better services.

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And so it goes: A digital store is the

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typical minimum viable product for fast market entry.

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Consumers, especially the young people, have great experiences in digital commerce

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and expectations for the same. As an example:

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A digital shopper experience with in-store navigation, easy ordering,

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personalized coupons, and curated experience is the de-facto standard.

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Unfortunately, business processes that have been built around long-running batch processes

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are very limited and thus do not deliver the experience needed.

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So you have only a limited number of variants.

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You have weekly or daily planning, fulfillment and delivery tact,

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and low flexibility to order changes and responses to unplanned downtime,

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supply problems; you get it.

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So you need to have an end-to-end digitized experience.

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Including, a digitized core is needed for consistent customer experience and agile execution.

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What is the goal and the ultimate value?

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Marketing in real time to the segment of one

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based on individual customer activities on all channels

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with individualized advertisements, discounts,

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product configurations, product recommendations, and so forth.

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Mass customization supported by real-time fulfillment monitoring,

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processing of customer change requests, responses to unplanned downtimes,

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responses to changed parts availability, just to mention a few.

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So, at the end you and we will need to better deliver the entire value chain

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based on the lot size of one, digitally enabled and fitting together.

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From HANA to S/4HANA - let us take an example with our in-memory platform,

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for which SAP S/4HANA has been architected to fully leverage the capabilities.

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For half a decade it has been an ongoing discussion about the value of speed.

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If you look at it from a velocity perspective

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but frame the conversation within the existing environment,

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you end up rating the solution in best case as an accelerator for business processes

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with limited business impact because you have a bottom-line conversation.

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But as soon as you understand the impact of a move out-of-the-box approach

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and you re-imagine the fundamental design of business processes,

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you are able to transform to new business models and improve the business outcome
massively.

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To ensure a modelling of processes that can be changed from push to pull from a user.

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These are key qualities and capabilities that S/4HANA is standing for.

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Let us cluster them. 1, Increased efficiency:

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We enable the redesign of business processes from push to pull.

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Data preparation and predesigning questions is not required anymore in the enterprise of the
future.

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Batch orientation was not directly related to the business processes

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and in the very moment a customer implements a solution based on this as a blueprint,

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the system is built on old boundary conditions.

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The new design allows to ask any question on the fly.

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2, Increased effectiveness:

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The simulation engine enables new scenarios and system behavior.

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A rule-based and instantaneous decision support guides the user

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with text mining capabilities, for example,

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as well as the ability to embed structured and unstructured data into one business process

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ensuring innovative business processes and business decisions.

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3, Increased agility: Scattered information and data duplication

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that create different versions of the truth are complicating decisions

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and making it very difficult for enterprises to bring good ideas to market quickly and profitably.

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So let us look into the digital levers in these three clusters

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and how they contribute to raise efficiency.

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There are many options if you are serious about digital transformation.

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And at the end you will pick the ones that suit you best.

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We start with number 1, Accelerated execution,

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precisely, where we will leveraging increased processing speed to accelerate execution

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from hours or days to seconds and minutes.

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2, Automate process steps to increase the percentage of zero-touch orders

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by reducing the data entry or re-entry, for example,

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accepting orders directly from the client system or keyed in by a client via the web shop;

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by using advanced rule engines with access to all ERP data to automate decisions.

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3, Digital out-tasking: So an increased flexibility to out-task subprocesses

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to the external digital micro-services, so someone provides a service you use.

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4, Speed up signal to action of transactions:

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Embed analytics of transaction data into the business process;

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steer execution in real time;

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deprecate, extract, transfer, load processes that relate delays.

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Number 5, Speed up signal to action in workflows:

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Eliminate the branch-outs for analysis and user input through embedded analytics.

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Eliminate the branch-outs for manager approval using real-time rule engines to extend data

sets.
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Number 6, Raise process intelligence:

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Increase the quality and resilience to external events

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and cut costs by raising process intelligence.

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Use clickstream, sensor, shop floor, geo, whatever functionality

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that helps your data sources, just to name a few.

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Process events in real time and predictive events with advanced algorithms.

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Number 7, Increase process flexibility:

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Allow users to define their own alerts, analyses and actions on the fly;

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no IT intervention needed, no complex system change.

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Leverage micro services, as mentioned before, rather than a custom solution approach.

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8, Increase organizational agility:

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Speed up the configuration of changes to organizational structures

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and affected processes made possible by simplified data model without aggregates.

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Number 9, Accelerate process innovation:

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Speed up configuration of changes to organizational structures and, of course,

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helping with your data processes not only to do those new things

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but also change them on the fly.

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So let us put all the above in context of concrete industry use cases:

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The first one, digital transformation in industrial manufacturing.

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In the digital economy you might want to leverage, for example, connected design.

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Linking telemetry data with operational and design data

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provides a complete new lifecycle visibility for improved design.

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The business outcome: lower cost, higher quality.

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Or let's look at connected manufacturing:

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Move from batch to real-time manufacturing processes,

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such as an ultra-fast MRP, to always meet the right demand.

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Get real-time feeds via the Internet of Things sensors

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to automate your operations and services.

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So the business outcome there will be increased cost efficiency and asset utilization.

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And, of course, serving the segment of one:

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Better synchronize processes, data, and tasks

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across highly complex and intertwined manufacturing and channel value chains;

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the transition from reactive to proactive

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by detecting and analyzing patterns and root causes like never before;

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improve the agility in response to new technologies

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such as 3D printing, quickly adapting processes.

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The business outcome: Higher revenues through faster time to market.

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Another one would be the optimized assortment:

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Quickly determine best practice and promotions despite high data volumes;

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optimize assortments by understanding the contribution of each single stock-keeping unit.

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So, the business outcome will be very clearly the reduction

00:14:18

and the reduced revenue loss due to stock outs.

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Profitability rises because, of course, you can now react quickly.

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Or let us take contextual marketing:

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If you really want to target a segment of one on the fly,

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you need that real-time contextual information.

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You need to gain insights into customer sentiments, hidden trends, and motivations.

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And then, your business outcome will be increased revenue from cross-sell and up-sell.

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Let's look at personalized engagement:

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Personalize one-to-one offers based on real-time recommendation engine

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which absolutely influences the behavior with real-time access to all buying preferences.

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Very clearly, your business outcome will be a reduced churn

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while increasing the loyalty of your customers.

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Let's look at personalized driving experience:

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Personalized services and offers to people while and as they are driving,

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like fueling or parking, based on real-time contextual information;

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perform predictive analyses to discover hidden trends

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and gain insights into driver behavior and preferences.

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The business outcome, again clear:

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Improved customer service and loyalty for optimizing the way how you interact.

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Let's look at optimized manufacturing:

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Move from batch to real time to always meet demand;

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get real-time feeds via Internet of Things to synchronize the assembly line

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with your business processes and the business outcome.

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And that will be increased cost efficiency and asset utilization.

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Let's look at predictive maintenance:

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Get sensor data to instantly assess the condition of your equipment

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which, by the way, you don't longer sell as a product but you have a service contract.

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Predict breakdowns, so proactively perform maintenance

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because that's the service you are going to be paid for.

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And here, very clearly, the business outcome is

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lower maintenance and service cost and, of course, an improved service.

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Let us look at optimized manufacturing:

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And again, it is the move from batch to real time that you need,

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and you need to get the real-time inventory feeds via connected manufacturing operations.

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It is a clear business outcome that you want

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because you want increased cost efficiency there.

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And the assets that you have, you want to utilize them better.

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So, here we have some examples, and especially,

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if we are going to predict, what we can do with S/4HANA,

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it is very important to predict where are breakdowns,

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where we can take some outcomes to lower all your maintenance and service costs that you
have

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because that business model transformation is very clearly

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from buying to leasing to service subscription.

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You want to achieve granular profitability analysis and billing capability.

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You want higher revenues through increased market penetration.

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So here are the key takeaways about SAP S/4HANA:

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It is the business foundation to lead into the digital transformation and the digital economy.

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It is very clearly designed to drive that digital transformation.

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And of course, it is unique in the market today,

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and that's why this course will help you how to get started.

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This concludes Week 2, Unit 1: Value Proposition Examples.

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See you in the next unit where my colleague Stefan Kaetker will provide insights

00:18:18

about Guided Configuration and Onboarding.

WEEK 2, UNIT 2
00:00:11

Hello and welcome to Week 2, Unit 2. My name is Stefan Kaetker.

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I am the Head of the development program for S/4HANA, Guided Configuration.

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In the previous unit, Sven provided some value proposition examples for SAP S/4HANA in his
unit.

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And now I will talk about Guided Configuration and Onboarding. So, let's get started.

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But also here, I would like to start with some kind of value proposition first.

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So, why are we investing so much in guided configuration and onboarding with S/4?

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We want to reach a big goal around reducing time to value

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so the whole implementation lifecycle, the whole time until the first discovery of the solution,

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until the go-live, we want to reduce that to bring the value of S/4HANA as soon as possible to
our customers.

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This also goes together with the reduced total cost of ownership because we are also looking
at the cost side.

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Time and cost - this is closely related in this.

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We want to make sure that a standard S/4HANA implementation can be done

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with a limited amount of consulting days involved and that it gets very, very fast.

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But we are not only looking at the first go-live point.

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We are also looking beyond that and want to drive down the effort

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and also the time that is needed in order to adapt the continuous innovation

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that we are going to ship with S/4HANA in the coming months

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because with this new product, of course, the innovation cycle is not over with the first release.

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It will go on and we need to take care that you as a customer can adopt these innovations

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and bring these innovations into your business as smooth and as simple as possible.

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And this is what guided configuration and onboarding is all about.

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And at the bottom you can see the key steps that we are going through during an S/4HANA
implementation.

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It all starts with the Discovery phase, and here we make sure that you can very, very easily get
access

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to a fully configured and applied with sample data, with a working company -

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that you can get this kind of system in the cloud instantly.

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That means a few clicks on our landing page and you are in the trial solution

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and you can experience the new user experience with Fiori, for example,

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and the new feature that S/4HANA brings to you.

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And this is only a few clicks away for you today. Try it out today.

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The next phase will be the Prepare phase

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where you will go through the different business scenarios that are implemented in S/4HANA,

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and have a look at them, do a deep dive, and figure out, okay,

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and how far do these business scenarios directly fit the needs of your business

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and where do your needs certain tweaks and changes during the implementation project.

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We call this a fit-gap analysis. This is when you start a new implementation with S/4HANA, for
example, in the cloud.

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Also, if you want to migrate your existing Business Suite application into an S/4HANA instance,

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we will do some migration planning during the Prepare phase,

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and there are ready-made productized services available

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to do the planning together with you and also to do the following migration

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where we try to keep the business processes from the old installation

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and move them over into the S/4HANA.

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This is then followed by a Realize phase

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where we have invested into additional self-service configuration apps that allow you very
easily

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to do the changes on top of the preconfigured business processes that we deliver with
S/4HANA.

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So, things like introducing new org structure entities, like new plants, new shipping parts

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and stuff like that, is now very, very easy with these Fiori-based configuration applications.

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And, of course, we also add tools and services to perform the migration

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and the necessary integration steps during the Realize phase.

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This is then followed by a Deploy phase where the solution is validated and actually tested

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whether all the business scenarios work as designed in the environment of the customer

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with the new configurations and with the uploaded master and transactional data.

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And also the topic of end user enablement is addressed where we'd make sure that every kind
of information

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that an end user or a key user who is helping during the implementation process will need

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is available where it is needed - right in the application.

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So we've embedded all the knowledge transfer materials,

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all the learning materials directly into the application itself.

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And then we are ready to go-live, and then we are transitioning into the Run phase.

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And there, as I said initially also, we support also the constant update and upgrade processes

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with our guided configuration and onboarding approach as a whole.

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And this is independent of the deployment model that you choose.

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If you go in the cloud or if you go on premise, the guided configuration and onboarding
approach

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helps you in all the deployment models that are foreseen for S/4HANA.

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So with that overview and with understanding the value of the guided configuration and
onboarding approach,

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let's go one step deeper and see how we achieve this.

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The key element in there is that we have also defined, for the new S/4HANA product,

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a new way or a new framework on how to implement and onboard into S/4HANA.

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That is called SAP Activate and consists of three key pillars.

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The first one are the SAP Best Practices, which means that we deliver the solution,

00:05:40

not only the software but also ready-to-run, S/4HANA-optimized preconfigured business
processes.

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So once you get hands on your S/4HANA system, you'll get already running business
processes

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that are optimized for S/4HANA with sample data in a sample company.

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So it's the same, as I mentioned initially, with the trial: You also get this as starting point for
your implementation.

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If you want to migrate an existing solution, then, also mentioned before,

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we have productized migration services available.

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That means we have the best practices for a migration from a Business Suite system

00:06:14

into an S/4HANA system put into the Best Practices.

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And these approaches are described in detail,

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so there is an easy-to-go path for your Business Suite implementation into S/4HANA.

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And, of course, with the Best Practices, we are also addressing specific integration and
extensibility needs

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with specific Best Practice packages for integration, for example, integration to our other cloud
solutions

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like SuccessFactors Employee Central or the Ariba Network,

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and also Best Practices on how to extend the SAP S/4HANA system.

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So that is all around the Best Practices that we deliver together with the product.

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At the release state of the product, Best Practices are readily available as an integral part of
the product.

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The next pillar is the guided configuration. This means we have built specific tools in Fiori,

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00:07:09

specific Fiori UIs to perform the assisted implementation for the initial implementation

00:07:14

but also for the ongoing adoption of the innovation.

00:07:17

So we will see in a short demo, later in this unit, you will see how this works

00:07:23

and how easy it is to adopt the configuration of S/4HANA to the specific needs of a company.

00:07:30

And because it's made so easy and we lifted basically the tasks to answering the business
question

00:07:36

instead of dealing with very cumbersome technical settings in the system,

00:07:41

we empower business and IT to work together very efficiently on the question

00:07:46

how should the new system be set up and how can this be brought into the system.

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We can achieve that with the tools because we put a new paradigm into developing our tools.

00:07:57

We make them content-aware, and we also make them aware of the history that has been
done before.

00:08:03

This enables a total content lifecycle management behind it and that we can better manage the
configuration content

00:08:09

and the transition of this content from the quality systems into the productive systems and so
on.

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And basically the tools are built in order to change and enhance

00:08:19

the already existing preconfiguration content in the system and by that we can, for example,

00:08:23

very easily add additional organizational entities like new plants or even new subsidiaries

00:08:31

into the system and enable them directly into the preconfigured processes.

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So it's not only creating a new instance like a new plant,

00:08:38

but this plant will then be automatically made available

00:08:42

for all the different business processes that are in scope.

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So, this gives you a very, very fast jumpstart into the implementation

00:08:50

and this leads then, at the end, to the reduced implementation times

00:08:53

and the reduced time to value that I talked about initially.

00:08:58

The third pillar: Last but not least, we have developed a specific methodology to implement
S/4HANA.

00:09:05

We harmonized the different methodologies that we embrace right now, so it's the successor
of ASAP.

00:09:10

And the SAP launch methodology for the cloud solutions is now the SAP Activate
methodology.

00:09:17

And there, in that methodology, we describe, in a very tangible way,

00:09:22

the different steps in an implementation project:

00:09:24

What needs to be done, what is the different order,

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00:09:27

what are the different tasks of the different roles involved in the project,

00:09:30

what does the project manager have to do,

00:09:32

what is the task of specific consultants and subject matter experts in an implementation
project.

00:09:39

So the whole orchestration on how you do efficiently an S/4HANA implementation.

00:09:44

And, of course, because this is a part of the overall Activate concept,

00:09:48

we have put Best Practices in the center of this methodology so it's readily using Best
Practices.

00:09:54

And it's open for partners so we do not hide this somewhere, we give it out to partners

00:09:59

to also enable our partners to do S/4HANA implementation projects very successfully and
efficiently.

00:10:05

And of course, all the different SAP engagement models

00:10:09

like the Premium Engagement approach from our AGS colleagues

00:10:15

is embedded into the methodology.

00:10:19

So now, I would like to deep-dive into all these three pillars.

00:10:25

But before we do that it's important to understand

00:10:28

that the value of SAP Activate itself is not just the sum of these three pieces.

00:10:33

The integration of these three pieces really brings an additional value,

00:10:37

and then the Activate is more than just the sum of these three pieces.

00:10:42

For example, you can see that, because we integrate the tools with the content

00:10:46

and make the tools content-aware,

00:10:48

we can get into another level of simplicity

00:10:51

in providing SAP S/4HANA implementations.

00:10:56

So now, let's go into the first topic, the Best Practices first, a little bit deeper.

00:11:02

This is an overview about the different Best Practices that we make available with S/4HANA.

00:11:08

So the key piece is the Best Practices for foundation, or what we call the baseline,

00:11:14

which contains the already mentioned ready-to-run business processes

00:11:19

that we deliver directly together with the product. This is the core.

00:11:23

And this means that the product has already business processes ready to run once you install
it.

00:11:28

Now we complement this with additional Best Practice packages, for example, around the user
interface.

00:11:33

So in these Best Practice packages, it is described how you add additional Fiori UIs, for
example,

12

00:11:39

to the already existing user interface in the SAP S/4HANA system.

00:11:46

For example, if you have very specific needs or very specific roles in your company,

00:11:50

here is the baseline on how to build additional Fiori UIs.

00:11:56

Here is a key approach, the standard Best Practice approach how to do that very effectively.

00:12:00

The same applies to the operational reporting: If you need additional reports based on
S/4HANA,

00:12:05

the Best Practices for operational reporting describe how this can be done.

00:12:11

We integrate with SuccessFactors, Ariba, hybris,

00:12:14

so basically the other SAP cloud solutions via Best Practices for SAP S/4HANA Integration.

00:12:19

And then we have also some additions, like cash management,

00:12:22

that come on top of the basic configuration of the S/4HANA system.

00:12:27

And if you want to extend the system more, like additional integrations, more complex Fiori
UIs,

00:12:34

the SAP Best Practices for Extensibility describe the approach and how to do that.

00:12:39

So this is very handy for new implementations as well as for migration implementations.

00:12:45

Specifically for migrations, the SAP Best Practices for Migration are very important

00:12:50

because this is the key package that describes how do you go

00:12:54

from an existing Business Suite implementation into an S/4HANA implementation,

00:12:58

how is your road from A to B and what are the Best Practices,

00:13:02

what are the approaches that you need to do,

00:13:04

what are the tools that you should use in order to do that very smoothly.

00:13:09

So, this wraps up all the content that we have in the Best Practices.

00:13:14

There is a huge wealth of experience in there from multiple years

00:13:19

that helps you to do your project successfully.

00:13:23

The next topic is the guided configuration and onboarding tools that we have available.

00:13:29

Of course, we have mentioned this before,

00:13:32

the ready-to-run best practice processes provide the basis of these tools.

00:13:36

And on top of that, we provide a toolkit for assisted implementation

00:13:40

which allows you to configure your solution

00:13:43

but also gives you additional access to a testing framework in that.

00:13:48

Because we do not only deliver Best Practice preconfigured business processes in this
system,

00:13:55

but also the related test scripts and a test engine is embedded into the product.

13

00:14:02

And this can be used also as part of the S/4HANA guided configuration application

00:14:06

that we ship together with the product.

00:14:08

It also contains tools to do data migration that you can connect to a source system

00:14:17

and then take the data out and map it into the S/4 data structures

00:14:22

and load your transactional and master data objects into the system.

00:14:30

If the standard configuration that we provide and the standard business processes

00:14:34

do not meet the configuration flexibility needs of your project,

00:14:39

then we also have the ability to break out of this easy-to-use concept

00:14:44

into the so-called expert configuration where we have full configuration flexibility

00:14:49

that you are familiar with if you know the Business Suite,

00:14:54

together with the content lifecycle management features that we have introduced with
S/4HANA.

00:14:59

Especially in the Enterprise Edition of the cloud solution and on premise,

00:15:03

the full configuration flexibility remains available

00:15:07

in addition to the easy-to-use tools for straight-forward configuration cases.

00:15:12

Now, enough talk, let's have a look into the system itself.

00:15:16

I will now show you the guided configuration application here, real quick.

00:15:25

So here you can see this. This is a Fiori application that is shipped together with the product.

00:15:30

So there is nothing that you have to install at a side as a specific tool, it comes as an integral
part of the product.

00:15:36

And the first thing that I would like to show you is that we can get a solution summary out of
this.

00:15:40

And we can see which kind of processes are now in this system preconfigured. So here you
can see it.

00:15:45

What we see here is the Project Services Edition of the cloud version of SAP S/4HANA.

00:15:56

And here you can see the different business processes, like Accounts Payable, Accounts
Receivable.

00:16:01

And also here the specific project- or industries-specific processes,

00:16:06

like Sales Order Processing for Project Based Services.

00:16:09

So we can see a list of the already preconfigured and implemented processes in that system.

00:16:14

Now, the next step would be that I want to change some of the configuration settings.

00:16:18

For example, I would like to change the approvals threshold of a purchase order that I raise.

00:16:23

So I can search for approval very easily.

00:16:27

I get the list of configuration apps that have something to do with approval.

14

00:16:31

I pick the Purchase Order Approval application, start it,

00:16:36

and I see here the different purchasing groups and their approval values.

00:16:42

And I think, 1000 Dollars, okay, that's maybe a little bit high for purchases group 001.

00:16:46

I want to change it to 500, so I go in here and just go 500, save it.

00:16:53

Very, very easily done, to change the configuration values.

00:16:57

And now, they are changed directly in the configuration tables.

00:17:02

So what this enables is an approach that we call Tune a little, try a little.

00:17:08

So we can change the configuration a little bit. Then we can go back into the business UIs

00:17:13

and test out the effect that this configuration change had.

00:17:18

This is the beauty of running this self-service configuration applications

00:17:23

on top of an already running preconfigured and fully running system.

00:17:27

There we can use this kind of approach where we can see very easily

00:17:31

the effect of the configuration changes that we have done.

00:17:38

Okay, and then you can see here also that we have the availability to test the processes

00:17:42

with a test workbench or, let me jump into this one, the data migration workbench

00:17:49

where we now can connect to an existing source system and then,

00:17:53

based on the scope of the business processes that we have in the system,

00:17:58

we automatically get out the transactional and master data objects

00:18:03

that are required to run the specific business processes.

00:18:08

If you want to have a more detailed demo of all the different features

00:18:13

that we have in the S/4HANA Guided Configuration,

00:18:16

I recommend to look into the supplementary material to this course.

00:18:20

There is a specific S/4HANA Guided Configuration demo available that you can have a look at.

00:18:26

So with that, let's go back to our presentation and to the next pillar of SAP Activate,

00:18:38

which is the last pillar, the third pillar, the methodology.

00:18:42

With the methodology we provide a framework

00:18:45

that guides project managers and project teams through the implementation project.

00:18:52

It structures the implementation process into different phases like Prepare, Explore, Realize,
and Deploy,

00:18:59

and gives specific help how these different phases should be performed.

00:19:07

So it gives you specific guidance and materials on how to reach the different deliverables

00:19:12

that are required to do this implementation phase.

15

00:19:16

And here I would also like to show you how this looks like

00:19:18

instead of theoretically talking about these topics.

00:19:23

And here we look into the SAP Activate methodology, specifically for S/4HANA.

00:19:28

So we see the different phases here from Prepare, Explore, Realize to Deploy,

00:19:34

these different implementation phases that you have to go through

00:19:37

and the different high-level steps in here that need to be done.

00:19:41

So if we now go into the Explore phase, then you will see here

00:19:45

that in this phase we are listing the different key deliverables

00:19:48

that have to be achieved during that phase.

00:19:51

If we now click on one of these deliverables like the solution validation and fit-gap analysis,

00:19:56

we will get into a description of this particular deliverable,

00:19:59

what has to be done, how this should be done.

00:20:03

In this case here, the validation of SAP solution, it tells me, okay, you do it via a demo.

00:20:08

You go through business process by business process, test is through,

00:20:12

and then you note down the gaps of the pre-implemented business process with the needs of
the business.

00:20:18

And then it is logged somewhere. And there are templates available in that methodology,

00:20:22

for example, to record the results of such a fit-gap analysis.

00:20:26

So, a lot of material that project teams need in order to perform the projects is there,

00:20:30

and a lot guidance is given, and a lot of structure is given to the teams.

00:20:35

So let's look into one of these so-called accelerators that are listed here.

00:20:39

These are those documents, PowerPoints that help the project teams to perform their job.

00:20:45

So for example, if you want to do such a fit-gap analysis,

00:20:49

we need to run a workshop with the customer in order to go through this.

00:20:54

And what we have here is a sample presentation that shows the different steps

00:21:00

and what you have to go through with the customer.

00:21:03

So these kind of materials, presentations, for example, can be used right away,

00:21:07

tailored to the specific needs of the project and then used.

00:21:10

So you do not have to start from scratch with all of these different tasks.

00:21:14

And this is available through all of the different phases from discovery to go-live,

00:21:19

and even beyond for upgrades and upgrade projects in the SAP Activate methodology.

00:21:25

So with that let's go back to our slides again and finally to the summary.

16

00:21:35

Okay, what did we talk about?

00:21:38

What have we learned now in the Guided Configuration and Onboarding unit today?

00:21:43

We have a comprehensive framework called SAP Activate available

00:21:47

to implement SAP S/4HANA, be it in the cloud or on premise.

00:21:52

With that approach and with that guidance in the systems,

00:21:56

with the SAP Best Practices that give you predefined business processes in the system

00:22:01

and predefined procedures on how to do migration and integration, for example.

00:22:05

With the guided configuration tools that give you a powerful toolset

00:22:10

and easy-to-use toolset at hand to do the changes that you need to do

00:22:14

on top of the preconfigured business processes to tailor it to your specific business,

00:22:20

and the methodology that gives you everything you need to very efficiently run your project.

00:22:25

This all together gives you the basis for reduced time to value,

00:22:31

for reduced total cost of ownership

00:22:33

for the initial implementation as well as for the ongoing adaption of innovation.

00:22:39

And with that I would like to conclude now this section

00:22:44

about Guided Configuration and Onboarding.

00:22:47

Thanks a lot for your attention. In the next unit, you will meet Rudolf Hois again.

00:22:52

He will discuss the Architecture, Editions, & Landscape of SAP S/4HANA with you.

00:22:56

Thank you very much and have fun.

17

WEEK 2, UNIT 3
00:00:12

Hello and welcome to Week 2, Unit 3.

00:00:15

Stefan Kaetker discussed Guided Configuration and Onboarding in the last unit.

00:00:18

And this unit is now about Architecture, Editions, & Landscape.

00:00:22

It is about what is really new in S/4HANA.

00:00:25

S/4HANA is the next generation business application that we have.

00:00:29

And as such it's important to understand what really makes S/4 S/4 compared to the traditional
world.

00:00:36

On the one hand side, yes, we also will enable Internet of Things scenarios,

00:00:40

we are connected to business networks and social networks, and focusing on people, devices
and big data

00:00:46

as a consumption and a provisioning of information into the application.

00:00:51

But then, again, it's really important to understand the novelties and the innovation

00:00:56

that we do to the application that differentiates it.

00:01:00

First of all, we also - as is well-known by now - have it as a cloud and an on-premise


deployment.

00:01:08

Now, for you it's important then to understand

00:01:10

that we provide actually those capabilities out of one code line.

00:01:14

And the importance of that is that, based on that, we are actually staying semantically intact

00:01:19

and have a very good integration between the systems possible.

00:01:23

But from an execution perspective then also, we can use the shared libraries,

00:01:28

we have the same cloud qualities which then also have effect on the way

00:01:31

you will operate a system on-premise.

00:01:34

We have common simplifications and can differentiate the scope via configuration.

00:01:39

So that actually gives us at SAP an edge in terms of innovation:

00:01:43

How fast can we provide new capabilities to the cloud,

00:01:47

while the cloud capabilities that we actually expose

00:01:50

are largely driven by the need in the market.

00:01:53

So not every solution today is one that is consumed at large.

00:01:57

And on the other hand side there are also some solutions

00:02:00

that do not really cater for a cloud deployment.

00:02:03

It may be that those are so differentiating that customers will have to extend them to their
needs.

00:02:09

On the other hand side it may as well be that the cloud deployment actually

18

00:02:13

will not be consumed at this point in time

00:02:17

as maybe HCM is today already state of the art

00:02:20

while a logistics process like a warehouse is at this point not really a choice customers do at
large.

00:02:27

Now on premise, obviously, as we have one code line, this is the simplified world.

00:02:32

But then we also use some existing code from the traditional world

00:02:36

as a landing scope as it is depicted here.

00:02:39

And landing scope basically denotes that by this we enlarge the functional capabilities,

00:02:43

the coverage of the system from the get-go such that you can migrate

00:02:47

or you can upgrade from an existing system, on-premise ERP,

00:02:53

into the S/4 world without losing scope in the first place.

00:02:59

What are the things that we do different compared to the traditional world?

00:03:03

What are the things in focus in the innovation that we are providing?

00:03:07

First and foremost, business process innovation: And here it's about getting ready for the
future.

00:03:12

So the business process innovation comes in two flavors if you wish:

00:03:15

One is actually the future, new business processes based on digitization,

00:03:20

could be the lot size of one,

00:03:22

it could be selling through the end consumer rather than a wholeseller.

00:03:26

So all these new business processes

00:03:28

where you also use digital information out of sensors,

00:03:31

or what have you, those are supported and in focus.

00:03:35

Second, it's also a re-do, if you wish, from the existing business processes

00:03:40

that are loaded with performance workarounds like data clerks or like batch runs

00:03:46

and data preparation steps or replications.

00:03:50

So, those things are taken out of the business processes,

00:03:53

which will bring a lot of value to the customers.

00:03:56

It's all focusing around the simple data model.

00:03:59

And in this session I don't talk at large about omitting the aggregates and indices

00:04:05

because this is discussed so many times and I do think

00:04:08

everyone has by now understood that this is reducing the data volumes.

00:04:12

However, we do even more things and I'll talk about that in a moment.

00:04:16

We continue to combine OLAP and OLTP, so transactional and analytical processes,

19

00:04:21

and so we try for better decisions and instant decisions

00:04:24

which in a sense is then embedded analytics in transactions

00:04:28

or inside transaction scenarios in the business processes.

00:04:31

So it's a bases of how we reshape the business processes.

00:04:33

We also focus on the user experience because if we didn't do that we would shim short.

00:04:38

It is important for SAP to overcome the traditional way of building UIs.

00:04:42

And then, as it's one code line we're implementing cloud qualities.

00:04:46

And these actually ripple into on premise in the way that lifecycle aspects are covered.

00:04:51

Cloud model for an application is all about efficiency and lifecycle aspects.

00:04:56

And yes, if we build cloud qualities in the application out of one code line, those will be
available on premise.

00:05:01

And if we adhere to rules, then it will also ripple into the on-premise world.

00:05:05

I'll talk you through that also in a moment.

00:05:08

In addition, we focus on integrating our cloud solutions,

00:05:11

SuccessFactors and Ariba, better than we ever had.

00:05:14

So this is becoming even closer to the S/4 world.

00:05:18

But bringing all that innovation without focusing on the migration experience

00:05:22

would be, again, hindering adoption. So we focus on migratability:

00:05:26

How do we achieve a roadmap for an existing customer landscape to move into S/4?

00:05:31

And last but not least, replacement. This is where we leave things behind that would limit
innovation.

00:05:37

Now, you have to understand that, actually, SAP is in a good position to drive innovation

00:05:42

as we own the total stack: We have the application layer, we have that database layer,

00:05:46

we have the language and also the technology layer in between.

00:05:49

And at this point in time we're shaping, if you wish, the demarcation line

00:05:53

which has to happen there. So if we need a new capability from the database,

00:05:57

we can ask the language to provide an interface to connect both capabilities

00:06:02

on application level and on the database level.

00:06:06

And as such we are driving innovation in the whole landscape.

00:06:09

Now, if we do have old legacy things that would block this innovation,

00:06:13

then we would shim short because in the end it's about innovating for the future

00:06:17

and not only for the sake of keeping everything that we ever had.

00:06:21

So this is where we then replace things, and we do replace only things

20

00:06:25

where we have alternatives of providing the same capabilities.

00:06:29

So in a sense, you can do the very same things, and sometimes there then are

00:06:33

legacy ways of achieving that, that will not be supported in the new world.

00:06:40

Now, focusing on the data model changes that we're doing.

00:06:43

So this example here is the ACDOCA table which is available since Simple Finance 2.0.

00:06:50

And what this actually is, it is a denormalized data model.

00:06:54

If you look at the depiction here, it's a combination of 5 previous tables:

00:06:58

General Ledger, Profitability, Management Accounting, Asset Accounting, and Material


Ledger.

00:07:03

And it brings it all into one. Now, this is rather surprising, right?

00:07:09

Because since the eighties or seventies even, data model design was all about normalization.

00:07:15

It was kind of a reflex coming out of your spine rather than a thought

00:07:19

because we all were trained so much of not duplicating data or reducing the data footprint.

00:07:25

And on the downside of that design was actually that incurred a performance loss

00:07:30

because we introduced unions and joins. To avoid those unions and joins

00:07:33

we even duplicated sometimes data where a field is then repeated in an item level

00:07:37

or in another table because it avoids then joins that we have to do.

00:07:42

And then we also came up actually with aggregates and index tables to overcome,

00:07:47

again, the performance problem of joining and unifying at large those individual tables.

00:07:52

So the driving paradigm was saving storage,

00:07:56

which was a complication at those times which is overcome by now.

00:08:01

And now you have to understand that as HANA is a columnar database, it compresses
extremely well.

00:08:07

A column that is empty is compressed to almost zero,

00:08:10

a column with very repetitive values is compressed very large.

00:08:14

And by that effect, we can actually go to denormalize the data model.

00:08:18

And by that we gain dramatic performance because we don't join and union,

00:08:22

we can do multidimensional reporting out of this one table.

00:08:26

We get away from a lot of complexity in coding, updating those replicated data,

00:08:30

updating aggregates and indices, so we simplified that.

00:08:34

And our application becomes more atomic-innate, if you wish.

00:08:37

So the interlinkage goes down, which is less complexity, higher quality, and more stability.

00:08:42

So, the data modelling design in a columnar-based world can be completely different.

21

00:08:50

But data model changes?

00:08:52

Everyone who has ever developed immediately would react that,

00:09:54

well, what does that mean to my code?

00:09:56

Because the code depends at large on the data model design.

00:09:00

Now, here we have the topic of migrateabilty. We had a colleague with a great idea.

00:09:05

He came up with the concept of compatibility views.

00:09:08

Now, these compatibility views, in essence, are a HANA technology, if you wish,

00:09:14

which looks identical to the previous aggregate or index tables

00:09:17

or also to the previous document tables like the material ledger.

00:09:22

And they also have the very same field.

00:09:24

Now, a program comes along, and in the traditional world it would just fetch the value

00:09:27

out of the aggregate, index tables or old structures.

00:09:31

Now, instead of doing that, in S/4 a compatibility view is invoked,

00:09:35

a view that more or less calculates on the fly the very same result.

00:09:38

And for the program, it's absolutely irrelevant whether the value was just read

00:09:42

or whether it was calculated for the purpose on the fly and then you process further.

00:09:47

And with that technology we are actually able to bring a lot of capabilities along with us.

00:09:54

So it's good for SAP because, as a I talked before about landing scopes,

00:09:58

so we can use old scopes to augment the capabilities of S/4 in the existing data model,

00:10:04

but it's also good for custom code or partner code.

00:10:08

So this is the basis why we can upgrade a system or not upgrade as such

00:10:13

but give you an upgrade like experienced by moving to S/4HANA.

00:10:17

And then we have that in the cloud and on premise with the same semantic,

00:10:21

which will keep your company integrated as you adopt S/4HANA.

00:10:25

Normally, if you would go for desperate cloud decisions,

00:10:30

this integration would violate your central IT

00:10:33

and the achievements that you have done over the years.

00:10:36

But with the ability of having S/4HANA in the cloud and on premise,

00:10:40

you can really choose and pick whatever is suitable for which part of your business.

00:10:47

The cloud qualities underneath that are actually important in terms of how the lifecycle aspects
work.

00:10:52

So the cloud is all about automating operations,

22

00:10:56

and we achieve that, a), by simplifying the configuration,

00:10:59

and those simplified configuration concepts will be available on-premise.

00:11:02

And it will also be able to be used as a starting point for your implementations

00:11:06

where you may then extend the configuration that is beyond what is available in the cloud,

00:11:11

however, the starting point is better and improved.

00:11:14

We do have an extension concept that is lifecycle optimized.

00:11:17

And the session about extension concepts will go into details there.

00:11:21

But you can also apply those as guideline on-premise and if you do so,

00:11:25

then also your lifecycle aspects on premise will go down in terms of cost because it's
optimized.

00:11:30

So the way the extension works is optimized for run-time aspects.

00:11:35

We invest in automation of the lifecycle management which, again,

00:11:38

is available as part of the S/4 on-premise if you adhere to the guidelines.

00:11:44

If you don't, if you still do the old way,

00:11:47

then those tools may not have the same coverage for you.

00:11:52

However, you will learn how to adopt those standards on-premise for the lifecycle aspects.

00:11:59

Principle of one is an investment protection on-premise because in the cloud

00:12:02

we will not go and provide you so many different capabilities for the very same thing

00:12:06

and the choices that we do in the cloud are those

00:12:09

that have the highest investment of SAP into the future so this is an investment protection for
you.

00:12:16

We will also invest into automated test capabilities because in the cloud

00:12:20

it's impossible to depend in upgrade cycles on customers' testing at specific points in time.

00:12:28

Again, those toolings will be made available on-premise

00:12:31

where you then can apply them for new developments that you do.

00:12:35

And the cloud first delivery that we're doing will actually provide well-proven innovation

00:12:39

and change the way that, you know, how we do ramp-up and those things

00:12:43

because most things will have been in productive use by many customers

00:12:48

before they even touch an on-premise system which, in essence, changes how fast we are in
innovation.

00:12:54

In terms of combining analytical and transactional processing,

00:12:57

we continue what we have started in Suite on HANA where we provided the virtual data model.

00:13:04

And the virtual data model is an abstraction of the transactional data model,

23

00:13:08

logically, into an analytical data model which is converted on a logical level

00:13:14

and then via SQL executed on the fly whenever you do reporting.

00:13:18

And those virtual data models, they will be available in different ways for consumption:

00:13:24

A) It will be available through generic SAP BI clients

00:13:27

like Analysis Office or the Design Studio or SAP Lumira,

00:13:32

which is a low-touch way of providing UIs which are,

00:13:35

you know, very much list- and pixel-perfect reports.

00:13:39

However, you will also want to consume those jointly with transactional insights.

00:13:42

So we talk about insight-to-action applications like we've done with the Smart Business
Cockpit.

00:13:48

You may have seen the MRP Cockpit or the Sales Order Fulfillment Cockpit

00:13:52

that show how we do that at SAP.

00:13:54

It's also ready for you to do your own scenarios out of that nature.

00:13:58

So it's also then a basis for these kind of developments.

00:14:01

And then, also, we come up with fact sheets

00:14:04

where we actually use the search engine of HANA in the background a,

00:14:07

going into a, if you wish, finding-based business process rather than searching-based.

00:14:14

And those innovations will be made available in a new user experience, namely Fiori.

00:14:20

And important, beyond that is HTML5 and that it is, you know,

00:14:24

as it's are a browser based solution, able to run on mobile and so on.

00:14:28

There is a key conceptional change that is important to us

00:14:31

because in the traditional world we were all focused on transactions.

00:14:34

And a transactional perspective gave you then, you know, one transaction

00:14:38

where you could cover all capabilities for each role in each industry globally,

00:14:42

which is a completeness of scope but it's also more difficult to learn

00:14:46

and understand which are the pieces that you would apply.

00:14:49

And Fiori goes into a role-based design where we say, if you access a business object,

00:14:54

I will give you a screen that is actually of the complexity, of the interaction you're doing.

00:14:59

And by that it's more or less self-explanatory and easy to learn.

00:15:03

Now, talking about easy to learn gives me a hint towards talking about

00:15:07

that in your helpdesk you may actually find

00:15:10

that quite a substantial amount of time is spent into wrong usage of the system.

24

00:15:15

I talked to a customer who said this is 30% of their helpdesk on first-level support.

00:15:20

Now Fiori will change that. With being role based, those errors will go down.

00:15:24

So this is a conceptional change that we do at large.

00:15:28

And this then will actually change the way that users will consume the system.

00:15:33

Beyond that Fiori is even more, and in particular, it is also the very first UI technology at large

00:15:40

that is implemented at large at SAP where we have a forced separation

00:15:45

between the UI layer and the application layer.

00:15:48

So we have the OData services that expose the application towards the UI layer,

00:15:54

and Fiori is then the consumption layer on top of that.

00:15:57

Now, this obviously changes the way how you can actually go and also build your own UIs.

00:16:02

Well, it's then about that over time we will have some OData services

00:16:07

that are released for this usage. Or we will have maybe generation capabilities

00:16:11

exposing new OData services against the underlying technology, exposing you the OData
service.

00:16:16

So this really opens up a new way of how users can extend our applications going forward.

00:16:22

And the traditional way of batch input - that may no longer be required as, you know,

00:16:28

batch input in the first place is not a very fast way of accessing our system.

00:16:31

And it's also not a real API layer, right.

00:16:34

So it was just usage for maybe something that you may have wanted to achieve.

00:16:40

And with that I'm actually coming to an end and this concludes Unit 3,

00:16:44

Architecture, Editions, & Landscape.

00:16:46

And in the next unit I will discuss the extensibility of SAP S/4HANA with you.

00:16:51

Hope to see you there.

25

WEEK 2, UNIT 4
00:00:12

Hello and welcome to Week 2, Unit 4. In the previous unit we discussed Architecture, Editions,
& Landscape,

00:00:17

and now we will focus on the Extensibility of SAP S/4HANA. So, let's start.

00:00:25

Starting with the perspective on S/4 HANA. Right?

00:00:28

There are always different reasons why you would want to extend SAP.

00:00:32

First of all you may extend the scope. This is all about where we don't have the capabilities
that you may need,

00:00:37

maybe some industry-specific things or some less common things that we do not cover.

00:00:44

On the other hand side you may want to extend the reach to go to internal users.

00:00:48

Right, and these may be non-frequent users, and as we know that,

00:00:52

UI development at customers is something that is part of any deployment that we see.

00:00:57

So, all those use cases, I mean, they don't change. This is what IT is about.

00:01:02

And we also see that you do that to, on the one hand side, maybe achieve competitive
advantages

00:01:07

where there is no standard product available, where you do something specific,

00:01:11

maybe some secret sauce kind of developments very specific to your own needs.

00:01:13

On the other hand sometimes you do it also for time to value.

00:01:17

Well, if you have it on premise and the upgrade cycle is,

00:01:22

whatever, a while away and you cannot wait for innovation to come,

00:01:25

and then you may also today choose some cloud extensions,

00:01:29

or you want to apply changes not for all types of users at the same point in time.

00:01:33

And then there is also the need for sometimes pace-layering, right?

00:01:37

Well, you know, a system of record may have other cycles than some UI innovation that you
want to do.

00:01:44

This is definitely something that drives you into the need of extension.

00:01:47

And that is generic, it is not application-specific, so this does not go away.

00:01:52

And then, obviously, we see different needs of extensions or different uses of extending.

00:01:57

So a business user, he has normally, you know, the very small level of extension.

00:02:02

He may change the order of columns in a table or format of numbers

00:02:07

or even, you know, some applications you may want to hide from a launch pad

00:02:11

or from a portal page, or those kind of things.

00:02:13

So very low touch things, just accommodating my own perspective of an existing deployment.

00:02:18

Well, we also see that actually, if we can involve the business expert and an implementation

26

consultant
00:02:23

to go into, you know, more configuration type things

00:02:28

where you could change the business rules based on configuration things

00:02:31

or add custom fields and tables very easily without a full development, then this is obviously of
need

00:02:38

and would change the way of how you can adopt a solution to the needs of a customer.

00:02:42

But then there is always the third level where you say well, this is not full size enough,

00:02:47

so I need a developer extending an application at large, where we traditionally talked about

00:02:52

maybe some add-on or bolt-on development or where you have a non-SAP system

00:02:58

that you even built up specifically for yourself and then work via integration.

00:03:01

Now all of these needs, they actually need to be supported in the new world of S/4.

00:03:06

Right, S4 doesn't change that, because this is something that is natural to IT,

00:03:10

that this kind of extension is required.

00:03:13

And this is why we have to provide the extensibility also in S/4.

00:03:17

Now, what you see on this slide is actually that we clearly differentiate

00:03:21

between the on-premise world and the cloud edition.

00:03:25

So, on the one hand side we have what we call an in-app extensibility.

00:03:30

And in-application extensibility is really what you do insight of a system on the same runtime
container

00:03:36

such that actually your code runs in the context of the existing SAP code.

00:03:41

On the other hand side we talk about a side-by-side deployment,

00:03:45

where you have an own capability, an own functionality

00:03:51

that is only connected via interfaces into an existing application.

00:03:56

On the side-by-side we have the HANA Cloud Platform,

00:03:59

and I'll talk in the end about what HANA Cloud Platform means here in this context

00:04:03

and how that is actually the tool of choice to do this kind of development.

00:04:08

It not only integrates with S/4, it also integrates with the other cloud solutions that we have.

00:04:15

And it's not only a development platform but also a runtime, so you can deploy the solutions
there.

00:04:20

And even you do not have then to consider runtime aspects of the solution.

00:04:24

In-App Extensibility, this is really, you know, the things you have traditionally done:

00:04:29

You've added some custom fields, some custom tables and then you created

00:04:33

in the ABAP solution your own ABAP code to work in context of that.

27

00:04:38

Now, this in-app extensibility obviously is different on-premise versus cloud.

00:04:42

In the classic extensibility on-premise you can do anything that you know,

00:04:47

while in the cloud we will have to control what is available there.

00:04:51

So let's a little bit dive into the In-App Extensibility and how things are in there.

00:04:57

So, if you look into the classic world of how extensibility was done,

00:05:00

customers and partner at large have added capabilities to our solutions.

00:05:05

And how the colors here blur on the slide indicates that actually some of the things

00:05:10

that have been done in extensibility were actually really modifying our system.

00:05:14

Now, modification is not a very well defined term in the industry,

00:05:18

but I talk about those modifications where you had to ask for a modification key

00:05:22

and really change our lines of code to the need of your company.

00:05:28

And this is just one of the ways of extending our system in a, you know, not runtime optimized
way.

00:05:34

So there are dynamic calls, sometimes there are implicit enhancement spots

00:05:38

or code generation or even direct database writes.

00:05:41

Now these are all extension ways in the traditional world that cause havoc to lifecycle aspects,

00:05:46

because those are the things that in upgrades, in maintenance cycles and so on

00:05:50

will drive complexity, will drive testing and will drive then also the timelines of upgrades.

00:05:57

And, obviously, if we change that, if we come up with a public model

00:06:03

where we restrict the usage towards BAdIs, CDS and APIs,

00:06:07

then you can have a completely decoupled way

00:06:09

of exposing your own extensions on top of our applications.

00:06:14

And this is, if you wish, a lifecycle-optimized way of extending our applications.

00:06:18

Now this statement is true on-premise and in the cloud because, if you behave in this rules of
engagement,

00:06:24

then obviously also a system that you would run on premise will have different lifecycle
aspects.

00:06:30

Separation of concerns is a big one, and then also include some automated tests

00:06:35

to the capabilities that you're doing, and you're done.

00:06:40

Then obviously, if you access our application, you would want to go via APIs

00:06:44

that are in the contract, reliable, right, in terms of I can rely that this contract will be available
over releases.

00:06:50

So it's about whitelisted and stable interfaces.

00:06:52

And stable here means the definition of the interface is not changing.

28

00:06:56

It is not the idea that it would, you know, dump over in any way.

00:06:59

So it's just the definition that is meant to be stable.

00:07:02

It has to be stable otherwise as well, but let's say, it's not a clear innovation. It's just required.

00:07:09

So now, if you go and compare the traditional way of how extension was done in the Business
Suite,

00:07:16

and this is still true and you can expect that to be true for the time the Business Suite is there,

00:07:23

you have all the extension capabilities, including modifications,

00:07:26

including code generations, as they are, and we are not changing anything there.

00:07:30

In the on-premise world of S/4, by the way, it is also possible to do these things, right?

00:07:34

We don't enforce those rules of engagement I've just talked about.

00:07:39

However, we make it available to you such that you can consider to consume them

00:07:44

because, as much as you consider them, the less effort you will have in lifecycle aspects.

00:07:48

Now we do understand that traditionally you violated those rules of engagement,

00:07:52

actually for three reasons: One is maybe you started early in the deployment

00:07:57

and we lacked capabilities which are there today. So you had to do it at that point in time.

00:08:02

That would be gone with the broad coverage that we have today in functionality.

00:08:05

Second, you may have just developed it but you know you didn't have any guidelines or tools

00:08:11

that guided you to an extension concept that is lifecycle-optimized, if you wish.

00:08:15

So by ignorance, by not knowing you violated such rules without a real proper need.

00:08:22

It's an architectural decision now to in those cases adhere to these rules.

00:08:24

And you can do that by deploying the new processes that we provide you

00:08:29

and, whenever you create new custom code, to actually tidy up the past.

00:08:34

And then sometimes, you violate those because you differentiate yourself so much in an area

00:08:39

that you have to because the pre-thought capabilities of extension are not good enough.

00:08:45

But if you restrict yourself to only those areas to violate those,

00:08:49

you will find yourself in an improved way of doing lifecycle

00:08:54

like upgrades or maintenance work and so on. So this is really changing the way.

00:08:59

In the cloud however, there is no discussion. We have to enforce these rules, right?

00:09:03

And as we have to enforce them there, we will have a tool-based support to lead a
development

00:09:10

towards not using, you know, direct writes to the database, not generating code in there.

00:09:15

So we will have tools that enforce those rules and by that can also make that available on
premise.

29

00:09:23

Now for the key user extensibility, obviously, we cannot ask those things

00:09:27

to be done with a traditional developer studio or whatever have you, right,

00:09:33

because those are tools that are not in consumption.

00:09:35

And on the next slide I'll a little bit talk how we see those low-touch extensions being done.

00:09:41

And then, obviously, we will have the interface layer with the public APIs

00:09:47

that you can consume then also from the side-by-side deployment in HCP

00:09:52

to make you able to come up with your own bolt-on solutions.

00:09:58

Now, let's dive a little bit deeper into the tooling that we see coming for the in-app extensibility.

00:10:05

So what you see here is actually that we propose a new set of tools,

00:10:10

like UI Runtime Authoring, Report Adaptation, Forms Designer and Email Template Designer,

00:10:16

as easy-to-use low-touch artifacts or tools

00:10:20

in which you can create artefacts for runtimes of the end user.

00:10:25

And those will work against the OData services, and those are then how we expose the
applications towards you.

00:10:30

You will maintain custom fields, and this maintenance will be defaulted on each of those layers

00:10:36

in the application stack without you really needing to go into the development tools

00:10:40

because actually we can propagate these kind of extensions through the stack.

00:10:45

And this then will be a very simplistic way of

00:10:49

how a customer can come up with their own ways of reports or forms or emails and so on

00:10:56

because you start with the custom fields being maintained, being rippled through the stack

00:11:01

and then exposed towards the tools that are then simple to come up

00:11:05

with the new forms' authoring and runtime adaptations.

00:11:11

Now, so far to the in-app extensibility. And yes, there will also be BAdIs available.

00:11:17

So if you have the need to react on BAdIs, there is a tool,

00:11:21

a web-based browser towards a ABAP development environment

00:11:28

which will be validated against this restricted set of ABAP

00:11:31

such that you cannot create ABAP code that is in conflict with these rules of engagement in the
cloud.

00:11:38

And by that you than can even react further towards the new fields.

00:11:42

So by that you really are then also able beyond what the tool automation gives you

00:11:47

to have some very specific reaction towards your customer fields.

00:11:53

Now, let's have a deeper look also in the topic of side-by-side extension.

00:11:58

And as said, HANA Cloud Platform is the tool of choice that we see here.

30

00:12:03

So by using the HANA Cloud Platform we have, on the one-hand side,

00:12:08

then also beyond the development environment, also lifecycle services.

00:12:12

We have self-service tools for you in the development environment.

00:12:16

We have the reuse services that you can use, which is around integration, around the
gateway, right.

00:12:22

Connectivity is something that we provide there, and mobile exposure

00:12:27

so you can develop mobile applications there. Identity management is also covered.

00:12:32

There is a concept which then can integrate towards what we have in S/4.

00:12:36

You can create your own documents and, last but not least,

00:12:40

it's then also a runtime that you may choose to deploy.

00:12:43

So being able to develop and operate the system in the HCP will then not require you

00:12:50

to come up with your own runtime and servers on premise.

00:12:53

You can then really run the application in the cloud.

00:12:56

Now the good thing is that the extension you are doing there,

00:12:59

it can actually run against the on-premise version of S/4 as well.

00:13:02

So, if you have something where you say over time, well,

00:13:05

I may start with an on-premise deployment of S/4 but go into the cloud later on,

00:13:10

being able to already extend in the HCP is, if you wish, a future-proof way

00:13:14

of doing that extension as then it prepares yourself for a cloud deployment as well.

00:13:20

Now, today we are actual having a roadmap for this extension concept.

00:13:27

From the get-go, obviously, we can have the Fiori user experience and tools to extend that.

00:13:33

We do have in-app extensibility and also the side-by-side platform.

00:13:38

However, the tools are still also growing in the capabilities that they are having.

00:13:41

So, one of the things that's on the roadmap is that we want to be able

00:13:45

to run the same HCP Fiori UIs against on premise and the cloud, which I already said.

00:13:50

So you will have then also the very same solution to arbitrarily run against either deployment,

00:13:56

which is I think important if you have a mixed landscape.

00:14:01

We also enrich the way that you can do the in-app extensibility.

00:14:05

So there also we will have to invest into the deployment models

00:14:10

and how we can have the restricted ABAP in the breakout; so how we enlarge the capabilities
there.

00:14:15

So we're starting with a smaller subset and we will enlarge over time to the limits.

00:14:19

But always keep in mind what is driving us is the lifecycle aspects.

31

00:14:24

So we need to ensure that the ABAP does not violate the maintenance of the overall solution.

00:14:30

And going forward, we will further the integration of other cloud solution there

00:14:36

and also have further cloud capabilities such as lifecycle management and operations.

00:14:40

And with that I'm actually coming to the end of this session, Extensibility of SAP S/4HANA.

00:14:48

And in the next unit my colleague Bert Schulz will talk about the role of IT and LoB with SAP
S/4HANA.

00:14:55

Thanks and good bye.

32

WEEK 2, UNIT 5
00:00:12

Hello and welcome to Week 2, Unit 5.

00:00:15

After discussing the extensibility of SAP S/4HANA in the last unit,

00:00:20

we will now discuss the role of IT and line of business within SAP S/4HANA.

00:00:27

My name is Bert Schulze and I am the Vice President for Co-Innovation for SAP S/4HANA.

00:00:32

My focus is on cloud qualities and differentiators driven by co-innovation engagements

00:00:38

with our clients, thought leaders, and user organizations as well as our partners.

00:00:44

So, let's start with today's topic.

00:00:48

I thought about how to get you into this chapter.

00:00:52

Many of you might have heard about the s-curve adoption cycle of innovation.

00:00:57

This model has been used for different purposes like, for example,

00:01:00

Diffusion of Innovations, the best-selling book from Everett Rogers,

00:01:04

a professor of communication studies.

00:01:07

Fundamentally, it defines four stages of innovation adoption:

00:01:11

start up, scale, compete, and transition.

00:01:17

The innovation is going through all of these stages though we can see

00:01:22

that ERP, enterprise resource planning, is, known today as fairly optimized,

00:01:28

built fundamentally on a thinking and technology which is limited by the seventies.

00:01:34

The mathematical turn in the s-curve is characterizing the start

00:01:39

of the transition phase and the point of diminishing innovation.

00:01:45

Adoption of new break-through technologies and disruptive innovations

00:01:48

is not possible within the same curve.

00:01:52

It requires jumping on to the next level to drive adoption through the phases of

00:01:59

innovators, early adopters, early majority,

00:02:04

late majority, and, number 5, laggards.

00:02:09

Thinking outside the box is difficult at any time.

00:02:13

It requires approaching situations in new, innovative ways,

00:02:17

conceptualizing challengers differently and understanding your own position

00:02:22

in relation to any particular competitor in a way you'd never thought of before.

00:02:29

How do we cultivate the ability to look at things differently

00:02:33

from the way we typically look at them?

00:02:36

It requires to think with an ignorance of convention and boundaries that are mind-blowing.

33

00:02:43

You need an interdisciplinary team focused on agility and

00:02:47

rethinking your differentiation based on this new technologies.

00:02:53

Methodologies like design thinking help to get into it.

00:02:58

Design thinking is a mindset backed by a set of tools

00:03:02

that gives a powerful new way to solve problems and unlock potential.

00:03:07

It completes the existing approaches by focusing on understanding the human side of things,

00:03:13

what technology is and what technology means to you and your customers.

00:03:22

So for IT it requires a massive change.

00:03:27

Gartner introduced the term of a bimodal IT in 2013.

00:03:33

Though we haven't seen enough details how to realize that concept,

00:03:37

the thinking behind is that an unprecedented pace of change

00:03:43

that we explore is coming with the digitalization.

00:03:47

While companies had half a decade to adopt to changing markets in the past,

00:03:52

we observe now change within half a year.

00:03:57

And a new dilemma arises once companies become successful.

00:04:01

To maintain the hard won position, they now put themselves on the defense.

00:04:06

The most innovative companies and, of course, also organizations

00:04:10

start becoming conservative the moment they become successful.

00:04:15

True, this helps their business position.

00:04:17

Unfortunately, this also signals the beginning of the end of their innovation leadership.

00:04:23

Achieving success directly comes with the close chasers aiming to compete you in your
markets.

00:04:30

They have the eye of the tiger and they're hungry to take you down.

00:04:34

Without anything to lose and streamlined to bite

00:04:38

competitors will gather to beat out to the market leader,

00:04:42

improving and often imitating to become better than you.

00:04:46

With all this pressure your focus as market leader shifts

00:04:50

from creating the next big thing to conserving your markets.

00:04:55

You will maximize return on investment but in return lose the creativity

00:04:59

and the eye of the tiger that had previously propelled you to success.

00:05:05

One organization is better equipped to drive adoption of disruptive technologies

00:05:12

in companies than others: It is the IT organization.

34

00:05:16

But the traditional role of IT is to simply run the company like a clockwork.

00:05:23

Most tasks are operational and technical.

00:05:27

The challenge that IT faces is not only a transformation, it is a balance act -

00:05:33

a balance act between run the company and change the company.

00:05:39

Gaining competitive advantages and contributing to the company's top line

00:05:44

is the goal of the transformative aspect within the balance act.

00:05:49

And for IT it is a historical chance to regain boardroom influence.

00:05:59

But to do so, the modern IT needs to follow two different mindsets:

00:06:07

IT as a service provider driven by the classical IT mindset -

00:06:12

run the company without downtimes, anticipate issues before they take place,

00:06:18

plan carefully because once done a plan becomes a contract.

00:06:25

Doing things right is the indicator for efficiency.

00:06:29

That is sustainable but it needs a lot of time to do so.

00:06:36

Time, the LoB mindset doesn't have.

00:06:39

And that brings us to the new mindset of IT as business innovators.

00:06:45

Topics are addressed in an iterative approach:

00:06:48

Stay fast, start fast, and fail fast; learn and change.

00:06:55

The general guideline is progress over perfection.

00:07:00

Doing the things right is key to effectiveness of the IT organization.

00:07:07

Doing the right things is key for the line-of-business mindset.

00:07:12

And this is in direct contrast.

00:07:17

But does this qualify for two different IT organizations?

00:07:21

I personally don't think so

00:07:23

because otherwise companies will be tripped in the same situation as before.

00:07:29

Keep in mind: Whatever happens on the right side here of this picture

00:07:33

is designed for speed and not for scale.

00:07:38

And all new services, products, and innovations explored on the right side

00:07:44

need to potentially be deployed with scale to not lose momentum

00:07:49

and keep the advantage alive on the left side.

00:07:54

Before we now move ahead to look into how to remap the way business is changing,

00:08:00

we should take a quick look at the characteristics of two mindsets to make it more tangible.

00:08:09

There are many aspects which are differentiating the two mindsets,

35

00:08:14

which is shown here with the wall in between.

00:08:19

IT as business innovator is not about cost reduction.

00:08:23

It is about future investments in new markets, new opportunities,

00:08:27

or at least, to defend existing market positions against the close chasers.

00:08:33

Therefore, a business case has to be identified.

00:08:37

A clear strategy has to be aligned.

00:08:39

And a business and technology roadmap has to be in place.

00:08:44

The technology itself becomes a liberating force.

00:08:48

As an example, it is cheap to store and process a large volume of data.

00:08:54

But only if companies are able to make it smart data and show tangible benefits,

00:08:59

they will see adoption and an improved competitive position.

00:09:06

Will smart data help to improve decision making,

00:09:09

innovate business models or change business processes and business outcome?

00:09:13

This should be put into the center of gravity of the organizational approach.

00:09:19

Smart companies that are here to leapfrog the competition

00:09:22

will bring the forces of liberating technology and business competency

00:09:27

together to win in the new digital marketplace.

00:09:31

And this brings us to remapping the way you run businesses.

00:09:36

From a company perspective, this can be seen as a landing page.

00:09:40

And also, if you move it from left to right, like a sliding controller

00:09:45

between an opportunistic adoption of digital technologies and

00:09:50

a transformation of a core business model

00:09:54

via systematically leverage digital performance improvements and

00:09:59

leverage digital to develop new competitive advantages.

00:10:04

Disruptive technologies are driven first in the iterative approach we've seen on slide 4

00:10:10

and might initially appear just as a new technology solution.

00:10:16

Usage might only improve IT's life, for example, higher availability or fast release cycles,

00:10:21

but does not have an impact on business performance.

00:10:26

The next step would be to use the new technologies

00:10:30

to change existing processes or even replace them.

00:10:34

So you can see we are moving now the lever towards the right side of that picture.

00:10:40

Thinking out of the box helps to find new ways and new solutions.

36

00:10:45

However, it still has only impact on the cost side, not on the business value.

00:10:51

In order to change that, disruptive technologies have to not only

00:10:57

influence internal processes but also external products and services.

00:11:02

This will improve and optimize the company's competitiveness

00:11:07

and directly effect the top line of a company.

00:11:11

The highest level of business process transformation is reached

00:11:13

when companies are able to enter new markets

00:11:17

or significantly improve the competitive position in the existing market.

00:11:23

This is when companies move from a disruptive technology to a new business model

00:11:27

and play on the right side of that picture which is driven by the LoB mindset,

00:11:32

while we see on the left side the classical approach, driven by the classical IT mindset.

00:11:39

And if we now move and look into the levers to reimagine business,

00:11:46

we can see examples also with SAP's in-memory technology, HANA.

00:11:51

For a few years it has been an ongoing discussion about the value of speed.

00:11:56

If you look at IT from a velocity perspective

00:12:00

but only focus on the existing environment,

00:12:03

you end up rating a solution like HANA

00:12:07

just as an improvement for a business process with very limited business impact.

00:12:12

But combining the capabilities of an in-memory technology with the application layer

00:12:18

unleashes the power to transform business processes.

00:12:24

We need to change perspective and move from the value of technology

00:12:29

towards a view where we understand the value levers

00:12:32

that business has and how the technology can contribute to it.

00:12:37

As you can see here on the left side,

00:12:40

increase efficiency, increase effectiveness, and increase agility

00:12:46

are levers to really reimagine businesses.

00:12:49

That are the leading KPIs we need to take into consideration

00:12:54

when looking into game-changing solutions like SAP S/4HANA,

00:13:00

understanding the differentiators based on its in-memory technology and its key capabilities

00:13:05

to contribute to the value levers and reimagine the business processes.

00:13:12

And to digitize the core, to move along the isobars, to fulfil both expectations

00:13:20

with existing solutions, companies had to decide where to move along the isobars:

37

00:13:27

Towards a higher automation or towards faster adoption of turning markets?

00:13:33

So the move has been along the isobars here.

00:13:38

This has mainly been defined by the complexity and non-elasticity of systems

00:13:45

built based on the limiting boundaries and conditions of the past.

00:13:50

The umbrella capability of SAP S/4HANA

00:13:54

is digitizing the core built on these aspects.

00:14:00

And we have learned this through the openSAP course already:

00:14:04

It's about a simplified landscape, it's about a simplified data model,

00:14:07

it's about a simplified user support,

00:14:10

it's about a simplified and faster configuration

00:14:14

in combination with fast integration capabilities.

00:14:18

As a result of that, companies can lift the application core

00:14:23

for the first time off the static isobar and move along these lines.

00:14:30

And moving along these isobars allows to fulfil both expectations,

00:14:37

as you can see here, so we're moving further down here on the x-axis

00:14:42

as well here on the classical approach axis.

00:14:44

So, a stable and high automation and at the same time a higher flexibility for the system.

00:14:53

And what we can see, looking at that,

00:14:56

that the digital transformation lever is really huge.

00:15:02

We live in times of an unprecedented pace of change.

00:15:06

In the past, between the year 2000 and 2010,

00:15:10

more than 50% of fortune 500 companies fell off the index.

00:15:16

They have simply been out-innovated by new companies.

00:15:20

We currently observe a perfect storm of technology innovations and disruptions:

00:15:27

The convergence of cloud, mobile, big data, and business networks,

00:15:33

and, of course, IoT as the new category leveraging these technologies.

00:15:39

If we hear all that, it is not surprising us

00:15:43

that a digitized core is a must-have to ensure competitiveness and agility of a company.

00:15:52

The ability to adopt change will be the key for success in these fast-turning markets and

00:15:59

decide if a company is able to transform its past and current position into the future.

00:16:08

This concludes Week 2, Unit 5, where we looked at the changing role of IT and line of
business.

38

00:16:14

Thanks for listening and see you in the next unit

00:16:17

when Sven will provide an outlook for the following week.

39

WEEK 2, UNIT 6
00:00:11

Hello, I am back and let us recap together what we have learned in this weeks units.

00:00:18

And also let us have an outlook to the next weeks units

00:00:22

of this openSAP course SAP S/4HANA - Deep Dive.

00:00:29

But first, let us quickly recap the week.

00:00:33

We started with the value proposition examples

00:00:37

for you to know what to focus and build your business case.

00:00:40

And we have explained how to get started with the trial, guided configuration, and onboarding.

00:00:45

We have also shown what do you need to know and be aware when it comes to architecture

00:00:52

and how to integrate SAP S/4HANA into your existing landscape.

00:00:59

And as a follow up, how you can extend SAP S/4HANA with your specific needs.

00:01:07

We concluded, what are the implications to IT and line of business

00:01:11

which is not the most important point,

00:01:14

if you want to address the digital transformation at hand.

00:01:19

So let us look ahead.

00:01:20

We'll keep on going with the deep dive into key areas of SAP S/4HANA.

00:01:27

Like Simple Finance, which is a good starting point for many.

00:01:32

Like the Simple Logistics, which is touching many line of businesses in the entire enterprise.

00:01:39

You will see the project-based solution,

00:01:43

a great example for a cloud edition of SAP S/4HANA.

00:01:48

We will dive into hybris Marketing,

00:01:51

a solution which you need

00:01:54

if you want to address the segment of one effectively.

00:01:59

I will conclude the week

00:01:59

with integration and migration strategy to SAP S/4HANA.

00:02:06

Thanks for attending the course and good luck, of course, with your self-test,

00:02:11

and your weekly assignment. We are looking forward to see your posts

00:02:16

on the online discussion forum.

00:02:21

This concludes the second course week.

00:02:24

I hope to meet you again in the third week, Adopt and Move to SAP S/4HANA.

40

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