S4 HANABootcampmasterdeck

SAP S/4HANA Enterprise Management
SAP Solution Center EMEA
Partner
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responsibility for errors or omissions in this document, and they should not be relied upon in making purchasing
except if such damages were caused by SAP intentionally or decisions.
grossly negligent.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. Partner 2

Dawn
of the new digital and networked business reality
The world is digital and networked
Last 2 years Last 2 years
90% 40%
Of the world’s data has Growth in adoption of
been generated1 business networks2
End of 2020 By 2020 In 2014
212 billion 9 billion 51%

“Things” will be connected3 Mobile users in the world4 Of workloads processed
in the cloud5
1 ScienceDaily, May 22, 2013. 3 Internet of Things (IoT) 2013 to 2020 Market Forecast: Billions of Things, Trillions of Dollars, IDC, 2013. 5 Cisco Global Cloud Index: Forecast and Methodology for
2013–2018, Cisco Systems Inc., November 11, 2014.
2 Technology Adoption Report on Business Networks, Ardent Partners, 2014. 4 Statista, 2014.

Run Simple with the digital business foundation of the 21st century
Supplier Collaboration
Workforce Engagement Business Networks
• Recruit and onboard the best workforce, simplify their • Leverage the broadest business network for travel and
work, and ensure regulatory and compliance entertainment, direct and indirect material, labor, and
services
• Manage the total workforce lifecycle from recruiting,
onboarding, performance, compensation, and learning The Digital Core • Leverage services from partners to vastly extend the
value of core offerings
• Enable the workforce to easily access the right
information across any device • Operate on a global basis, meet data security
standards, and operate at industry best standards
• Drive digitized mission-critical business
processes across all operations
• Get instant business insight on one single
source of live information on any device
• Predict and simulate to anticipate future
business outcomes
Customer Experience
Big Data & Internet of Things Omnichannel
• Orchestrate business processes across marketing,

• Drive new business insight by capturing and analyzing real-time
information on Big Data commerce, sales and service
• Deliver personalized experiences in context for each
• Embed device data across the value chain to create new
business models interaction
• Create a single, harmonized experience for your
• Leverage an open innovation platform to quickly integrate,
extend, and build innovative apps (on premise, in the cloud) customer, while reducing the burden on employees
SAP HANA Cloud Platform

Businesses need to digitally transform across 5 key pillars
Assets & Customer Core Business Workforce Suppler Collaboration &

Internet of Things Experience Processes Engagement Business Networks
Analyze sensor data from Engage customers more Move away from lengthy and Attract and retain talent by Extend business processes
products and deliver outcome personally with one-to-one time-consuming batch clearly communicating and deliver new value to
based experiences marketing processes business impact customers
Monitor assets on the factory Personalize products and Quickly react to market signals Enhance decision making with Gain flexibility to customize to
floor to predict failure and offerings by slicing and dicing happening in real-time a cross device personalized changing customer demands in
decrease downtime customer data on the fly user experience shorter planning cycles
Connect to all people, devices,
Gain instant visibility into Predict customer behavior and and business networks Gain full visibility into critical Orchestrate profitability with
whereabouts of in-transit make context-relevant product human resource gaps to real time sensing of demand
materials to drive new recommendations prevent business disruption and supply data
scheduling efficiencies
How can I better How can I deliver How can I digitize How can I engage my How can I
workforce?
utilize my products omnichannel my operations? increase supplier
& assets? experience? collaboration?

Digitize beyond the core, embrace the digital economy
Digital economy Digital core Digital transformation
Internet
of Things
Segment of 1
Big Data
User empowered
At scale
Instant insight I Contextual information I Personalized experience
Business
Process enriched Lot size of 1
networks
Scalability I Real time I Prediction I Simulation
Live data
Devices
Granular I Responsive I Accurate
No latency
Social
networks
People
Traditional core value play Leading-edge processes I Integrated system
SAP S/4HANA value play Digital transformation of business models

SAP S/4HANA
Simplified for technology for all companies
Simplified data model Simplified system landscape Simplified user experience
Elimination of aggregates Reduced number of systems Role-based engagement across

and business warehouses the business
Flexible access to data and data Instant access to any business
compression insight
Fewer interfaces between Simple design across
systems business processes
Example: Materials Management & Operations – Example: SAP S/4HANA Finance -

inventory management receivables management
Classic SAP Business Suite SAP S/4HANA
SAP GUI SAP Fiori UX Delta
11 Inventory aggregate tables 1 Document table
2 Document aggregate tables Duration 132 47 - 64%
(seconds)
11 History aggregate tables
Clicks 39 11 - 71%
2 Material master tables 2 Material master tables Screen changes 8 2 - 75%
Fields filled 5 2 - 60%
Accelerate execution Reduce total cost of ownership Increase user productivity

What is SAP S/4HANA?
SAP S/4HANA
Our Next-Generation Business Suite

build the next-generation business suite
» Innovative in-memory Database
» New architecture and data models
» Renewed applications
» New UI technology
» Cloud & on-premise deployment models
» Natively integrated
SAP S/4HANA is a new product line (it is not a legal successor of any SAP Business Suite product)
The classical SAP Business Suite & SAP ERP is a separate product line and will still be available.

Understanding the difference: SAP ERP and SAP S/4HANA
SAP Business Suite SAP S/4HANA

ERP S/4HANA
Origin Code sources Origin Code
sources
sources
sources
SAP
S/4HANA
Finance Enterprise
Management Cloud Editions
On-Premise
On-Premise EHP7/8 On-Premise EHP7/8 Compatibility Scope
SAP HANA only
Classical ERP on any SAP S/4 HANA Finance Compatibility scope to Cloud Qualities also
DB incl. HANA as innovation package support conversion available On-Premise

Next-Generation Business Suite
Enterprise Management
Feature and function parity
Included Modules Included Industries
to SAP ECC 6.0x
Logistics General (LO) Product Lifecycle Management (PLM) Core industries
• Chemicals
plus
Sales and Distribution (SD) Materials Management (MM) • Life Sciences » major innovations in core
The Digital Core
• Wholesale
modules like Finance and
• High Tech
Logistics Execution (LE) Quality Management (QM)
• Mining
Materials Management
• Industrial Machinery & and Operations
Plant Maintenance (PM) Customer Service (CS)
Components
» Inclusion of additional
Production Planning & Control (PP) Project System (PS) industries in the Core
Core Industries – adding
Others: Global Trade Management, features and processes
Environment, Health & Safety (EHS) Compensation Management, Agency Business,
… • Automotive
• IM&C
Finance Human Resources
• A&D
• Mill Products
© 2016 SAP SE or an SAP affiliate company. All rights reserved. internal

Partner 16
SAP S/4HANA Suite
Introducing the next generation core and lines of business solutions for the digital economy
SAP S/4HANA
SAP S/4HANA SAP S/4HANA SAP S/4HANA SAP S/4HANA ASSET
FINANCE HUMAN RESOURCES MANUFACTURING SUPPLY CHAIN MANAGEMENT
The Digital Core

The Digital Core
Enterprise Management
SAP S/4HANA SAP S/4HANA SAP S/4HANA SAP S/4HANA SAP S/4HANA
SALES SERVICE MARKETING SOURCING & RESEARCH &
PROCUREMENT DEVELOPMENT

Key Innovations
Solution Map
https://solutionexplorer.sap.com/solexp/ui/vlm/default/vlm/default-lob-178

SAP S/4HANA Enterprise Management Product Map
Streamlined Accelerated Optimized Enhanced

Procure to Pay Plan to Product Order to Cash Request to Service
Supplier Information and Production Engineering and Order and Contract Service Master Data
Master Data Planning Management Management
Sourcing and Contract Production Operations and Inventory and Basic

Service Management
Management Execution Warehouse Management
Inventory and Basic

Operational Procurement Receivables Processing Service Parts Management
Warehouse Management
Inventory and Basic Product Development and Service Agreement

Warehouse Management Project Control Management
Invoice and Payables

Maintenance Management
Management
Quality Management and

Compliance
Core Human Cross Application Time

Resources Management
Core Accounting and Financial Cost Management and

Finance Close Profitability Analysis

Key innovations 1511 mapped to Product Map
Key Innovations 1511
Procurement Inventory Material Material Available to Capacity Order Mgmt. & Industry to Core Accelerated Universal
Management Valuation Requirements Promise Planning Billing Financial Close Journal &
Planning Central Finance
Separate slide
Streamlined Accelerated Optimized Enhanced Core Human Core Finance

Procure to Pay Plan to Product Order to Cash Request to Service Ressources
Supplier Information Production Engineering Order and Contract Service Master Data Cross Application Time Accounting and
and Master Data and Planning Management Management Management Financial Close
Sourcing and Contract Production Operations Inventory and Basic Service Management Cost Management and
Management and Execution Warehouse Profitability Analysis
Management
Operational Inventory and Basic Service Parts
Procurement Warehouse Management
Management Receivables Processing
Inventory and Basic Service Agreement
Warehouse Product Development
and Project Control Management
Management
Invoice and Payables Maintenance

Management Management
Quality Management

SAP S/4HANA Capabilities Business Benefits

Business Challenges
» Complex, manual, time- » Increased efficiency in the Procure-to-Pay » Lower procurement operations
process cost by increased process
consuming processes with
effectiveness
high volume of purchasing
» New SAP Fiori Apps for Analytics, Spend
documents and line items.
KPI’s, Search and Object Pages, and My » Shopping Cart + Purchase
Requisition simplified in one
» Poor visibility into Inbox
business object
procurement activities
» Self-Service Requisitioning with a
» Poor end-user adoption, semi- consumer-grade user experience » Ad-hoc supplier performance
transparency
automated or manual
» Supplier Evaluation - Supplier transparency
processes suffer from slower
and performance monitoring based on hard » Higher business user adoption
procurement cycles, more through consumer-grade user
facts and soft fact based questionnaires.
errors, and reduced efficiency. interface
» Ariba Network Integration for Purchase
Order and Invoice. » ~ 5 times less interaction steps in
the SAP S/4HANA system to get
the procurement information

Business Challenges SAP S/4HANA Capabilities Business Benefits

» Low throughput prevents » Real-time processing of inventory » Improve on-time delivery
real-time inventory postings and visibility of inventory
values
» Increase inventory turnover
» Missing embedded and real-
» Increase inventory accuracy
time analytics » More timely and detailed inventory
» Process & data
postings lead to higher accuracy of the » Decreased safety net (e.g.
inventory reduce buffers) due to increased
redundancies increase effort
transparency
» Multiple aggregates
» Move from batch processing to real-time
& locking bottlenecks
processing » Attract end user by real-time
accuracy
» Limited insights into actual
» Principle of One – only one material
costs
valuation method » Manage the changing demand
for smaller lot sizes passing
» Multiple material valuation
» Simplified Data Model - Analytics -
through the logistic operations
Analytics performed on primary data
tables

Use Cases Technical Innovation Business Processes

enabled …addressing the digital business as digital core improved
Simplified Data Model (MATDOC = MKPF + More effective Inventory
High volume Backflush Management like inventory
(Parallel Production combined MSEG + add. Columns for fast calculations)
turnover, inventory costs.
postings) No aggregates: On-the-fly aggregation of
Parallel inventories More accurate Material
Internet of Things Scenarios processing of Accurate Requirement Planning
(real-time goods movements inventory Insert only on DB Level, No DB locks inventory
posting) postings anymore. More efficient Procurement
processes
Segment of one (Smaller lot Insert only on application level- Elimination
sizes passing through logistic of standard price (SPREIS) locking (taking More accurate Sales Order
operations) rounding differences into account) Fulfillment and Delivery
Combined postings from One valuation method (Material Ledger)

More efficient Production
offline devices (Fast parallel instead of 2 (MM-IM and ML)
Execution
postings)
Easier implementation of
… new processes (like Just-In-
Time, Kanban)

Business Challenges SAP S/4HANA Capabilities Business Benefits

» Increasing customer service » Prioritized view on material flow issues » Clear visibility across the
material flow
» Low inventory accuracy » Real-time alerting based on current stock
» Revenue losses due
requirements situation » Proactive decision making in
response to changing
to stock-outs » System-generated solution proposals
demand
» Poor on-time delivery » MRP can run as frequently as required (up
» Flexible tailoring of available
performance to 10x faster)
capacities and receipts to
» Missing parts in production » Demand information is propagated faster meet required quantities
through the supply chain
» Real time inventory
monitoring and automating
the creation of procurement
proposals

Business Challenges
» Difficult to fulfill customer
» SAP HANA-enabled mass product » Fulfill an order on time and in
orders on time with
availability check for sales-, planned- and the desired quantity using
the proper quantity
production-orders. different kind of checks for
» Inability to promise accurate
» ATP check for all items of an order at
different business scenarios
and reliable order dates
once » Perform automatic back-
» Inefficient strategies to fulfill
» Significant performance
order processing
orders from the entire network
- or to substitute products
improvements for releasing large » Reduce inventory carrying
production orders cost
automatically
» Inefficient strategies to sell
» Data and process innovations in Backorder
processing and Sales Product Allocation
scarce products in a fair
(planned innovations)
manner
» Inefficient ways to manage
order backlogs

Business Challenges SAP S/4HANA Capabilities

Business Benefits
» On-time delivery performance » PP/DS side-by-side to SAP S/4HANA
» Fulfill an order on time and in
» Days in inventory » Integrated Production Planning and Detailed the desired quantity using
Scheduling (PP/DS) in SAP S/4HANA different kind of checks for
» Revenue loss due to stock-
(planned innovations) different business scenarios
outs
» Advance planning and optimization » Perform automatic back-
» Adapting to changing plant and production planning and detailed
order processing
condition scheduling
» Live cache-based, finite-capacity » Reduce inventory carrying
planning as an integral part of SAP cost
HANA, requiring just one database to
manage
» Advanced analytics
» One materials requirements planning
» Simplified data integration
» Intuitive maintenance of master data
and integration models

Business Benefits
Business Challenges SAP S/4HANA Capabilities
» Get full insights into all issues of
» Maintaining customer » Increased efficiency in the Sell-from-Stock the order fulfillment process
satisfaction process
» Focus onto most critical issues
» Complexity of order » Sales Order Fulfillment Monitor: collects all
management issues that can occur over the whole end-to- » Run actions directly and track
end process and visualize them in one the solution progress
» Escalating supply chain and
dashboard:
IT costs around order
» shipping, billing and credit blocks, » Combines analytical insights
fulfillment with operational actions
» incompleteness situations
» Inaccurate order promise » problems in supply in terms of » Real-time visualization of KPI
dates purchasing and manufacturing, including thresholds and alerts
» Quality of data in the
» delays in the delivery and shipping » Enables the decision preparation
process until to profit locks, when
collaboration process via internal and external
invoices cannot be created and
collaboration
transferred to the financing.
» Increased efficiency for Billing and Invoicing
» Lower TCO due to data model
simplification,

Key Innovations

Example:
Soft financial close anytime » Universal journal for both financial and » Drive one common view of
controlling data financial data to help ensure
Description: A traditional enterprise-wide consistency to
measurement of the finance » On-the-fly aggregation of transactional
minimize reconciliation
organization is the speed at tables
which a company closes its
» Central finance to consolidate many back
» Enable real-time processes for
books. In benchmarking studies, instant insight to make timely,
ends
the value engineering group of SAP relevant decisions
found that the top quartile–performing » Real-time oversight of close progress
» Use prediction, simulation, and
companies achieve the annual
financial close in 26% fewer days
» Real-time insight into financial results analysis to evaluate financial
implications of strategic business
than their peers, resulting in 61% » Continuous intramonth processes choices
lower general ledger and closing
costs.
Industry relevance: cross-industry

SAP S/4HANA, on-premise edition 1511
Business Scope for Materials Management and Operations
Key Innovations
Inventory Management Material Material Available To Promise & Backorder Capacity

Requirements Planning Valuation processing Planning
Simplified data model resulting Fast MRP run, and new working Principle of One, scalable Enhance ERP by advanced ATP New deployment option for
in increased through-put, model for MRP controllers material valuation capabilities, capabilities in APO, new coding bringing PP/DS on ERP,
flexible analytics at the most based on decision support. utilizing Material Ledger, that to make it better, innovation reducing integration
granular level. way customers can use multi- benefit as functionality will be efforts, allowing seamless
currencies, valuation methods refreshed. master data & UI
per different accounting laws harmonization.
like GAAP.
Order Management & Billing Procurement

Enable monitoring of end-to-end order-to-cash process & take Increased efficiency in the
actions for any exceptions, information on the exceptions to Procure-to-Pay processes, new
resolve the issues, lower TCO due to data model Analytical Apps & Spend KPI’s,
simplification, support for the most recent versions of business Ariba Network Integration for PO
features such as FSCM Credit Management, GTS Foreign Order and IV.
Trade, SFIN Revenue Accounting, new analytical capabilities.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. This is the current state of planning and may be changed by SAP at any time. Partner 32
Highlights of key business innovations
Re-architecting for
in-memory platform
Material Requirements Inventory Material
Planning Management Valuation
Responsive user
experience design Sales Representative Procurement Clerk Material Planner
(Order Management & Billing) (Procurement) (Material Requirements Planning)
Unifying functionality in
the Digital Core
Available-to-Promise & Capacity Industry Solutions
Backorder Processing Planning to Digital Core

S/4HANA Simplification – Example
Inventory Mgmt. Inventory Mgmt. Material Ledger Accounting
Sales and Distribution (Valuation via „MBEW) (multi GAAP, multi currency)
(Quantities)
Primary GLPCT Totals

MBEW Totals
Document tables MARD QBEW COSP ZZFISLT
CKMLPP CKMLCR
VBAK LIKP Totals tables COSS FAGLFLEXT
Business Suite
VBRK
MARC OBEW OBEW
COFIT GLFUNCT
MSPR
LIPS MSTQ
VBAP VBRP VBFA
MSLB CKMI1
MSTE
Totals BSIS BSIT BSIK BSID BSIM
MSTB MSKU Index Indices
Export/import Index LIS MSTQH MSLBH BSAS BSAT BSAK BSAD
MSSQ
Status tables MSKA
tables tables tables MSTEH MSKUH MSSA MKOL MBEWH QBEWH
VBUK S066 VAPMA MSTBH MSKAH Document
EIKP BKPF GLPCA
VAKPA MCHB MLHD Documents
EIPO VBUP S067 MSSQH MKOLH OBEWH OBEWH MLIT BSEG
VLPMA ZZFISLA
VLKPA MSSAH MCHBH MKPF MLPP MLCR
Document FAGLFLEXA
VRPMA MLPPF
Rebate index Output mgmt MSPRH MLCRF COBK
VRKPA MARDH MSEG ANEK GLFUNCA
VBOX NAST MARCH COEP COFIS
ANEP
History tables
Sales and Distribution Master Data Inventory Mgmt Material Ledger Accounting
(Quantities) (multi GAAP, multi currency)
VBAK LIKB VBRK
MATDOC Material BKPF ACDOCA

VBAP LIPS VBRP VBFA Material
Prices
SIMPLE DATA MODEL PRINCIPLE OF ONE THROUGHPUT INCREASE

» Only main tables remaining, no redundancies » Only one valuation method (Material Ledger) » INSERT only on database level (MM-IM),
instead of 2 (IM + ML) no locks for standard price valuation
» Clear separation of master data from transactional data
» Reduction of memory footprint » Flexible rebate management instead of
cumbersome and expensive redundancies

Tables in MM-IM data model
Key Messages
» No aggregates: On-the-fly aggregation of
inventories.
» INSERT ONLY: No locks any more, full
scalability.
» Self-contained: Full transactional access
and most important analytical queries
avoiding JOINs.
» Compatibility views for full compatibility with
legacy code (customer, industries).
Mixed tables:
MARC Plant Data for Material
MARD Storage Location Data for Material
MCHB Batch Stocks
MKOL Special Stocks from Vendor
MSLB Special Stocks from Vendor
MSKA Sales Order Stock
MSPR Project Stock
MSKU Special Stocks with Customer

Industry solutions to Core
For broader industry adoption
Optimizations to
simplify user
SAP S/4HANA Enterprise Management experience &
Discrete harmonize
Industries Mill Materials
Finance Management processes in the
Products (DIMP) and
Operations SAP S/4HAHA
DIMP
Enterprise
Management
Business Process
Technical Integration & cross-industry enablement Optimization
Future Direction

Innovation: Real Time Inventory Management
Business Challenges Business Benefits Capabilities
» Low throughput prevents real-time » Improve on-time delivery » Real-time processing of inventory
inventory postings and visibility of inventory
» Increase inventory turnover
values
» Missing embedded and real-time
» Reduce cost of inventory (e.g. stock
analytics
level, cost, place)
» Posting of finest granularity like
handling unit, lot size 1, sensor data
» Missing comprehensive data model
» Single source of truth of inventory in
» Process & data redundancies increase one system
» Decreased stock levels (e.g. reduce
buffers) due to increased transparency
effort
» Attract end user by real-time accuracy
» Easy to consume data model
supporting flexible analytics
» Manage the changing demand for
smaller lot sizes passing through the
logistic operations

Innovation: Material Requirement Planning
Business Challenges Business Benefits Capabilities
» Increasing customer service » Clear visibility across the material flow » Prioritized view on material flow issues
increases user acceptance and
» Low inventory accuracy
efficiency
» Real-time alerting based on current
stock requirements situation
» Revenue losses due to stock-outs
» Proactive decision making in response
» Poor on-time delivery performance to changing demand
» System-generated solution proposals
» Missing parts in production » Flexible tailoring of available

» MRP can run as frequently as required
(up to 10x faster)
capacities and receipts to meet
» High safety stocks
required quantities » Demand information is propagated
» Not sufficient exception handling
» Real time inventory monitoring and
faster through the supply chain
concerning MRP planning results:
automating the creation of
Shortage / Over coverage situations,
procurement proposals
disruptions in the replenishment

On the fly simulation and decision support
» Real time data from all areas of material

management including procurement lead times,
inventory stock availability, lot sizes, manufacturing
scheduling and sales orders across multiple sites
» Suggestion of potential solutions for the shortage
through “Solution Cards” with all information needed
to resolve the material shortage (e.g. Reschedule
Simulation
Purchase Order, Increase Purchase Order, stock
transfers).
» Real Time Simulation computes the future inventory
situation in detail. The optimization algorithms make
use of the simulation to find the ideal replenishment
strategies
» Daily work tasks focused on exceptions and on the
most urgent problems with the highest financial
implication
Decision
Support

Demand & Supply Planning for Manufacturing
MRP Cockpit Material Planning View Solution Proposals

Monitor KPIs Identify most urgent and important Choose from a set of pre-
Receive Alerts on material issues, considering time to action evaluated solution
shortages, late purchase and order values, priorities, and proposals.
orders etc. the like.
Platform across industries
On-Premise Edition – Industries Available in 1511 Shipment
AEROSPACE &
DEFENSE AUTOMOTIVE HIGH TECH CHEMICALS
INDUSTRIAL ENGINEERING
MACHINERY & CONSUMER WHOLSALE CONSTRUCTION &
COMPONENTS PRODUCTS DISTRIBUTION OPERATIONS
LIFE SCIENCES UTILITIES MINING BANKING
SPORTS & PROFESSIONAL TRANSPORTATION &

MILL PRODUCTS ENTERTAINMENT SERVICES LOGITICS
HIGHER EDUCATION & DEFENSE &

INSURANCE RESEARCH SECURITY TELECOMMUNICATIONS

Separate slide
Streamlined Accelerated Optimized Enhanced Core Human Core Finance

Procure to Pay Plan to Product Order to Cash Request to Service Ressources
Supplier Information Production Engineering Order and Contract Service Master Data Cross Application Time Accounting and
and Master Data and Planning Management Management Management Financial Close
Sourcing and Contract Production Operations Inventory and Basic Service Management Cost Management and
Management and Execution Warehouse Profitability Analysis
Management
Operational Inventory and Basic Service Parts
Procurement Warehouse Management
Management Receivables Processing
Inventory and Basic Service Agreement
Warehouse Product Development
and Project Control Management
Management
Invoice and Payables Maintenance

Management Management
Quality Management

DIMP is the most

widely used industry
solution within SAP.
This solution is
heavily used by
cross industry
customers.
(25 % Inside / 75 %
outside leading
industries)
Therefore SAP´s
strategy has to
support these End-
to-End Processes
via S/4HANA.

New processes of Enterprise Management according to integrated “Discrete Industry”
Streamlined Accelerated Optimized Enhanced Core Human Core

Procure to Pay Plan to Product Order to Cash Request to Service Resources Finance
Vehicle Sales Management

Supplier Information and Service Master Data Cross Application Time Accounting and Financial
Master Data Production Engineering and Management Management Close
MRO: Inventory Management
Planning Build to Order Optimizer with Interchangeability
(BTOO)
Sourcing and Contract Parts MRO: Inventory Management Cost Management and
Management Order and Contract Interchangeability Profitability Analysis
Production Operations and Management with Interchangeability
Execution Enhanced Supplier
Kanban Scheduling Agreement Processing Service Management
Scheduling Agreement Processing for inbound & Outbound
for inbound & Outbound Just-in-Time processing MRO: Maintenance & Service
(inbound & Outbound) Just-in-Time processing Processing with Rotable Control
Just-in-Time processing (inbound & Outbound)
(inbound & Outbound) Bill of Service
Inventory and Basic
Operational Procurement Warehouse Management
Enhanced Supplier Parts
Kanban Inventory and Basic Service Parts Management
Interchangeability Warehouse Management
Multi-Level Goods Receipt Parts
Product Development and Interchangeability
Self-billing & Evaluated Service Agreement
Project Control Automated Earned Management
Receipt Settlement
Value Management
Receivables Processing
MRO: Inventory Management
Inventory and Basic with Interchangeability
MRO: Maintenance Planning
Parts Enhancements
Interchangeability
MRO: Maintenance & Service Processing
Maintenance Management
Invoice and Payables with Rotable Control
Management
Bill of Service
Equipment & Tools Management
Quality Management

Product Roadmap structure mapped to “Mill Industry” processes included now in EM
Streamlined Accelerated Optimized Enhanced Core Human Core

Procure to Pay Plan to Product Order to Cash Request to Service Resources Finance
Classifying Purchasing Info

Classifying Customer Material Service Master Data
Supplier Information and
Records Under delivery tolerances in Cross Application Time Accounting and Financial
Info Records
Master Data ProductionMaterial Requirements
Engineering and Management Management Close
Planning Planning
Order and Contract
Sourcing and Contract Management Cost Management and
Management Profitability Analysis
Sales Order Fast Entry of
Characteristics
Service Management
Operational Procurement Production Operations and
Execution Combining Production and
Purchase Order Fast Entry of
Characteristics Process Orders
Inventory and Basic
Service Parts Management
Inventory and Basic
Batch Valuation of
Inventory and Basic Receivables Processing Service Agreement
Warehouse Management Configurable Materials
Changeable Characteristic Management
Values in Returns Order
Goods Receipts Fast Entry of Product Development and
Characteristics Project Control
Maintenance
Invoice and Payables
Management
Quality Management
Cross Topics Enhancement to Original

Batch

Processes Embedded in EM from Discrete Industry Processes Embedded in EM from Mill Industry
» Build to Order Optimizer (BTOO) » Mill enhancements Logistics – General e.g. Characteristic
» Enhanced Supplier Kanban based Packing
» MRO: Maintenance Planning Enhancements » Mill enhancements Sales and Distribution e.g. Changing
» Just-in-Time processing (inbound & Outbound) Characteristic Values in Material Variants
» Scheduling Agreement Processing for inbound & » Enhancements Materials Management e.g. Stock
Outbound Overview and Object Search by Characteristics, Cutting
Stock Transfers
» Vehicle Sales Management » Mill Enhancements Logistics Execution e.g. Packaging
» Bill of Service Material Items in Delivery
» Automated Earned Value Management » Mill Enhancements Production Planning e.g. Batch
Valuation of Configurable Materials, Alternative Units of
Measure in Production
» Non-Ferrous Metal Processing
» Mill Cross Application Components e.g. Original batch

Engineering & Construction, Aerospace & Defense & Mill
Bill of Service
Equipment Tools Management
Grouping , Pegging & Distribution
MRO Maintenance, Repair & Overhaul
Mill Products Digital Core

All Automotive E2E Processes are in SAP S/4HANA 1511 Core
natively
Integrated Product and Process Engineering

Packaging Logistics
Executing Inbound Deliveries
Just in Time
Just in Sequence Digital Core
Kanban: Enhancements for Automotive
Parts Interchangeabilities / Supersession
Production Backflush for Discrete Industries
Self-Billing (Inbound)
Evaluated Receipt Settlement
Scheduling Agreement Processing
Vehicle Management System

Field Length Extension of Material Number
Extended S/4 HANA material number

Directly used internally (incl. UI) and in all database tables
MATNR
40 characters
Existing long material number solution for discrete industries
Mapped to „short“ material number which

is used internally and in all database tables
Mapping
External MATNR MATNR
40 characters 18 characters
For external interfaces & UI
© 2016 SAP SE or an SAP affiliate company. All rights reserved. internal

Partner 57
Natively extended Material Number in SAP S/4HANA
In SAP S/4HANA the material number will be natively extended

to 40 characters
• DIMP customers do not need to use

LAMA anymore
• Customers are flexible to use their
own systematic
• Harmonized master data model
across whole SAP portfolio

The Road to SAP S/4HANA
Understanding the difference: SAP ERP and SAP S/4HANA
SAP Business Suite SAP S/4HANA

ERP S/4HANA
Origin Code sources Origin Code
sources
sources
sources
SAP
S/4HANA
Finance Enterprise
Management Cloud Editions
On-Premise
On-Premise EHP7/8 On-Premise EHP7/8 Compatibility Scope
SAP HANA only
Classical ERP on any SAP S/4 HANA Finance Compatibility scope to Cloud Qualities also
DB incl. HANA as innovation package support conversion available On-Premise

Transition to SAP S/4HANA
The 3 Transitions Scenarios
New Implementation Landscape Transformation
Non
SAP
Migration of selected applications System Consolidation
S/4HANA
FI CO FI CO SAP S4
System Conversion MM SD
HANA
SAP S/4
HANA
Co-deployment
HANA
of dedicated
capabilities in HANA
one central
SAP S/4HANA
S/4HANA system
Consolidation of current regional Business Suite landscape into one global
SAP S/4HANA system

Deployment Options
High Level Stack Architecture S/4HANA Cloud & On-Premise
Fiori Shell
SAP S/4HANA Architecture differs
Fiori Design
from the classical Business Suite Apps, Studio
Search
ALV Analysis
architecture – compatibility is build in (UI5) App
» Data structures
R R R
(Compatibility provided through Core Data Services) OData lnA lnA
S/4HANA ABAP
» Application engines Gateway
R R
» UI layer (Launchpad / Fiori)

(WinGUI still available for compatibility reasons) Transactional Logic Analytic Engine (Enterprise-)Search
R R R
HANA
CDS View
Suite Tables

Start your path to SAP S/4HANA with SAP Service and Support
Prepare Explore Realize / Deploy
All Implementation Dependent on Migrate Existing

Scenarios Implementation
Scenarios
System Conversion
Technology driven migration offerings
Implement new
Strategy & innovations Implement
Roadmap additional
Value
Discovery
Landscape Transformation
Business driven migration offerings
Installation and data
transition for
+ industry / LOB
packages
Workshop
SAP
Technical New Install S/4HANA
Architecture
& Migration
Planning New Implementation
On S/4 HANA on premise and cloud

Your way to SAP S/4HANA
Scenario 1 – New Implementation
Scenario Description
New installation of SAP S/4HANA e.g. for SAP S/4HANA SAP S/4HANA
Option: Initial
customers migrating a legacy system. data load from
On-premise Edition Cloud Edition
Legacy or SAP
System with
DMIS / MWB SAP Fiori
Legacy
Benefits for the customer Any customers legacy SAP S/4HANA Core
system
• Reengineering and process simplification SAP HANA
based on ready-to-run business processes and
reference solution delivered with the product
• New implementation of industry-leading
Business Suite
What How
• Pre-defined migration objects & Best Practices
available in a guided process
1 Install S/4HANA SWPM (Software Provisioning Manager)
Target group Data Migration Server / Migration Work Bench

2 • SAP source: system connection
Initial data load from
● SAP Business Suite customers or net new source system
• Legacy system: file upload;
SAP Data Services additionally supported
customers with predefined migration content

New Implementation
Migration cockpit
Data Migration
• The data migration activities can be executed based on
the cloud implementation cockpit
• Based on the selected business scenarios relevant data
migration objects are proposed.
• Existing customer can connect their SAP Business Suite
system. For new customer a template based approach
can be used

SAP Landscape Transformation
SAP S/4HANA data migration / landscape transformation platform
Source Environment Target Environment
SAP S/4HANA
On-premise Edition
Preconfigured transformation content Insert of data via

for SAP S/4HANA, cloud edition
standard interfaces and
Process Control
LAN / WAN table-based.
Transformation & Analysis Object-based Transformation
1
Framework Business object based data transfer
Insert of data via

Transformation Engines
(Migration, Conversion, Replication) standard interfaces
(BAPIs / Direct Input)
(new implementation)
File Upload
SAP MWB
Non-SAP
SAP S/4HANA
Legacy
Cloud Edition
Any customers
legacy system

Scenario 2 – System Conversion
Scenario Description
Customers who want to change their current
system into a SAP S/4HANA system. SAP Update
SAP S/4HANA
On-premise Edition
Manager (SUM)
Database, NetWeaver and Application with Database
Migration Option
transition in one step. (DMO)
SAP GUI (SAP GUI) / SAP Fiori
Benefits
SAP ERP Core * SAP S/4HANA Core
• Migration without reimplementation AnyDB / SAP HANA SAP HANA
• No disruption for existing business

processes
• Re-evaluation of customization and existing
process flows
What How
Target group Rapid Database Migration of SAP Business Suite to SAP
● SAP Business Suite customers with SAP
ERP or SAP Business Suite on SAP HANA
* Installation and migration S/4HANA (all one step migration, including Finance
Logistics and conversion) using SUM with DMO
as starting point

SAP S/4HANA system conversion
SUM phases
Table replacement
Downtime minimizing Kernel switch
steps using "switch AIM, XPRA …
upgrade" technology
Shadow System Uptime

Target
Release Switch Upgrade Technology Post Processing Regular Uptime
Downtime
Uptime
Start
Release Preparation Phase
Pre-Transformation
Checks
Application specific
adaptions on start
release
t

SAP S/4HANA system conversion
Example – Activities during the different phases in logistics
Inventory valuation not supported in SAP S/4HANA. Switch to

material ledger can be done before migration (activation of ML
Pattern 1: Material Ledger supported via dedicated report) During downtime ML migration to
Activity before new logic.
migration + downtime
One Logic for BOM-Determination only via production version.

Pattern 2:
BOM-Determination Conversion to new logic via report possible before and after
Activity before or
migration possible, has to run before starting MRP in SAP S/4HANA
after migration
Pattern 3:
One logic for all storage location MRP-Logic. In case of using such
Activity after Simplification of
logic, program needed to create missing MRP-areas and MRP-File
migration MRP areas before running MRP in SAP S/4HANA
Pattern 4:
Technical migration Conversion of IM-Tables (MSEG) into new MATDOC
MM-IM

Scenario 3 – Landscape Transformation
2
Selective Data
Scenario Description Migration
service (SLO) 1
Customers who want to consolidate their SAP S/4HANA SAP S/4HANA
with SLT
landscape or carve out selected entities or On-premise Edition Cloud Edition
processes into an existing SAP S/4HANA SAP GUI
system. SAP ERP Core (SAP GUI) / SAP Fiori

Customer-specific migration project re-using AnyDB or SAP HANA
SAP S/4HANA Core
standard migration content.
Benefits SAP HANA
• Stay with current business processes and SAP GUI
move gradually to SAP S/4HANA innovations
SAP ERP Core
• Harmonized business processes and shared
master data through consolidation AnyDB or SAP HANA
• Carve out of single entities of the company to

SAP S/4HANA and leverage process
simplification What How
Target group 1
Install (and
configure) SWPM (Software Provisioning Manager)
● SAP Business Suite customers with multiple SAP S/4HANA
SAP ERP or SAP Business Suite on SAP
2
HANA systems, or hybrid cases “Carve Out”
Selective Data Migration service (SLO) with SLT
 Individual harmonization project required

SAP S/4HANA landscape transformation scenarios – On premise
SAP LT enabled solutions
Consolidation Migration of Business Units Migration of selected applications

(Company Code) (centralFinance)
Pre-configured
Tailored offerings for selective data migration requirements

(for example based on time slice, plant or other objects)
can be requested as project solution or service.

SAP Best Practices for Migration to SAP S/4HANA
New Implementation SCENARIO CONTENT TOOL
Install new S/4HANA, On- Predefined SAP Data Services content including mapping and business SAP Data
Premise Edition transformation rules based on pre-configuration. Services
Install new S/4HANA, cloud Predefined ABAP coding in SAP Landscape Transformation for extraction, SAP
edition: net new customers transformation and loading of data. Predefined mapping and business Landscape
(non-SAP sources) or transformation rules based on pre-configuration. Supports Cloud Project Services Transformation
installed base (SAP ERP) and Enterprise Editions.
Implement S/4HANA, Cloud Pre-defined content to load data for interactions, contacts and products from non- SAP HCI (PI)
Marketing Edition SAP systems and for Social Media channels (Twitter and Facebook fan pages)
System Conversion
SCENARIO CONTENT TOOL
Migrate complete SAP ERP Guidance and procedures for one-step migration projects (Upgrade & Migration) DMO for SUM
system to S/4HANA, On-
Premise Edition
Landscape Transformation* SCENARIO CONTENT TOOL
Install new S/4HANA, On- Predefined SAP Data Services content including mapping and business SAP Data
Premise Edition transformation rules based on pre-configuration. Services
Install new S/4HANA, cloud Predefined ABAP coding in SAP Landscape Transformation for extraction, SAP
edition: net new customers transformation and loading of data. Predefined mapping and business Landscape
(non-SAP sources) or transformation rules based on pre-configuration. Supports Cloud Project Services Transformation
installed base (SAP ERP and Enterprise Editions.
source)
(*) SAP S/4HANA, Cloud Marketing Edition possible scenario

SAP S/4HANA
Simplification List – Application-area-wise sorting of items
Simplification List
Area
Master Data CRM Sales and Streamlined Accelerated Plan Optimized Order Enhanced
Distribution Procure to Pay to Product to Cash Request to
Simplification Item
Service
Simplification Item
Procurement MM / SRM Logistics Simplification Item
5 Solutions + 3 Solutions + 3 Solutions + 4 Solutions +
Area
Core Human Core Finance
Simplification Item Resources
Finance HCM
Simplification Item
Simplification Item
2 Solutions + 2 Solutions +
Basic Topics Cross Topics Area
Simplification Item
Basic Information Description Edition / Release Category

Impact Description Recommendation Custom Code
Related Services Customer Effort Service Offering

Your way to SAP S/4HANA - Summary
Scenario 1: New Implementation
DESCRIPTION BENEFITS TARGET GROUP
New installation of SAP • New implementation of industry-leading SAP Business Suite

S/4HANA e.g. for customers Business Suite customers or net new
migrating a legacy system. • Reengineering and process simplification customers
based on ready-to-run business
processes and reference solution
delivered with the product
Scenario 2: System Conversion DESCRIPTION BENEFITS TARGET GROUP
Customers who want to • Conversion without reimplementation SAP Business Suite

change their current system • No disruption for existing business customers with SAP ERP or
into a SAP S/4HANA system. processes SAP Business Suite on SAP
• Re-evaluation of customization and HANA as starting point
existing process flows
• Transformation over time
Scenario 3: Landscape Transformation DESCRIPTION BENEFITS TARGET GROUP
Customers who want to • Stay with current business processes and SAP Business Suite
consolidate their landscape or move gradually to SAP S/4HANA customers with multiple SAP
carve out selected entities or innovations ERP or SAP Business Suite
processes into a SAP • Harmonized business processes and on SAP HANA systems, or
S/4HANA system. shared master data through consolidation hybrid cases
• Carve out of single entities of the company
to SAP S/4HANA and leverage process
simplification.
SAP Activate
A framework for Innovation Adoption
Objectives
 Fast and less service intensive initial implementation of SAP S/4HANA and continuous
adoption of new innovations
 Standard functionality, control of updates/upgrades, extensibility
 Customer-specific extensions
 Simplify onboarding – harmonization for cloud and on-premise deployments
 Cloud-like experience for the customer
 Fast scale-out of SAP S/4HANA adoption into SAP and Partner ecosystem
 Establish long-term customer relationships for success - end-to-end engagement with Premium
Engagement offerings


SAPACTIVATE
● is the combination of SAP Best Practices, tools for
an assisted implementation and agile methodology
to simplify the adoption of SAP S/4HANA
● delivers ready-to-run business processes optimized

for SAP S/4HANA with a reference solution
● provides best practices for migration, integration

and configuration for SAP S/4HANA
● supports different starting points for customers to

adopt SAP S/4HANA - new implementation, system
conversion and landscape transformation
● accelerates the initial implementation of SAP

S/4HANA and is designed for continuous innovation

SAP Best Practices for SAP S/4HANA, on-premise edition SAP S/4HANA
on-premise edition
Data Migration

SAP Best Practices for SAP S/4HANA, cloud edition SAP S/4HANA
cloud edition
Data Migration

SAP Best Practices for SAP S/4HANA
Base Scope
● The processes delivered with SAP Best

Practices core support main industry
requirements and cross enterprise priorities
and are optimized for SAP S/4HANA
● SAP Best Practices support requirements of
11 core industries, not including industry
extensions
● Consumer Products
● Wholesale Distribution
● Life Sciences
● Chemicals
● Mill Products & Mining
● Automotive
● High Tech
● Industrial Machinery & Components
● Aerospace & Defense
● Engineering, Construction & Operations
● Professional Services

SAP Best Practices for SAP S/4HANA, on-premise edition SAP S/4HANA
on-premise edition
Data Migration

SAP Best Practices for SAP S/4HANA, cloud edition SAP S/4HANA
cloud edition
Data Migration

SAP Best Practices for Integration with SAP S/4HANA
Cloud Integration Portfolio
Migration Best Integration Best Cloud Baseline /

Practices Practices Best Practices
Characteristics Technical migration content best Integration content for On- Baseline and best practices for
practices Premise/Cloud & Cloud/Cloud cloud deployments
Integration best practices for
Contains • Middleware and interface • Preconfigured process and data • Process definitions
configuration integration content • Standard configuration for the
• Validation rules • Middleware and interface best practice processes and
• Data quality content configuration data structures
• Best practices for reconciliation • Mappings and message control • End user enablement
• Connectivity and security
• Integration best practices for
SAP Cloud and 3rd party
• Tools and best practices for
easy implementation of 3rd
party integrations

SAPACTIVATE Guided Configuration
KEY MESSAGE
• Guided Configuration provides an assisted way to implement SAP Best Practices and
• facilitates the lifecycle management of the pre-configured business process content

SAPACTIVATE Guided Configuration
Manage Your Solution

Configure Your Solution

Configure Your Solution
Why Content Lifecycle Management

Guided Configuration
Standard for Cloud – An Option for On Premise Customers

SAPACTIVATE Methodology
Next generation agile methodology that drives customer success
 One simple, modular and agile methodology supporting

all SAP S/4HANA transition scenarios
 Full support for initial deployment and continuous
business innovation
 Harmonized implementation approach for cloud, on-
premise and hybrid deployments
 Broad coverage of SAP solutions starting with
SAP S/4HANA
 Enables co-innovation with customers and is accessible
for partners
 Successor of the ASAP and SAP Launch methodology

SAPACTIVATE Methodology
Key SAP Best Practices and Methodology accelerators by phase
Available Description
Accelerators
Customer A master deck that covers the scope of
presentation the solution and the service
Master data overview A table to understand the sample master
data shipped in the package
Organizational data A table to understand the organization
overview model data shipped in the package and
how it relates to the software
Process diagrams A graphical representation of the steps
in a scope item
SAP Solution A container for the implementation
Manager template content for one or more solutions in an
area
Project backlog Repository of all delta requirements and
template* gaps to plan iterative, incremental build
during Realize phase
* Project Management templates and guidance

Extensibility
SAP S/4HANA: Extensibility
Extend the scope

Extend the reach
(custom specific
(more internal and
application logic,
external users,
integration of other
mobility etc.)
solutions etc.)
SAP Fiori UX
Internet of Things role-based user experience for all devices
People
SAP S/4HANA Applications Devices

Business Networks instant insight-driven applications for all lines of business and industries
SAP HANA Platform

Big Data in-memory platform for all data Social Networks
Cloud Marketing
On-Premise
Cloud and Project
Edition
Enterprise Edition Services Edition
native integration for hybrid scenarios

Ariba Concur Fieldglass hybris Software SuccessFactors

SAP S/4HANA Extensibility: Technology Overview
Extend the scope

Extend the reach
(custom specific
(more internal and
application logic,
external users,
integration of other
mobility etc.)
solutions etc.) In-app Side-by-side
SAP Fiori UX
Internet of Things HTML5, FPM role-based user experience for all devices
HTML5 People
SAP S/4HANA Applications

ABAP, XS instant insight-driven applications for all lines of business and industries
Java, XS
Business Networks Devices
SAP HANA Platform
HANA in-memory platform for all data HANA
Big Data Social Networks
Cloud Marketing
On-Premise Cloud and Project
Edition Enterprise Edition Services Edition Integrate
SAP & non-SAP
solutions
native integration for hybrid scenarios
(*) Planned innovation Ariba Concur Fieldglass hybris Software SuccessFactors

SAP HANA Cloud Platform in more Detail
Application platform, managed services and self-service tools
Software as a Service
Enables
Platform as a Service
SAP HANA Cloud Platform
Managed Services
Shared Reuse-Services
Self-Service
Portal Mobile
Tools
Integration Identity Management
Gateway Document
Lifecycle Connectivity Further Services … Platform Enterprise
Services Operations Service
Business HANA Application Platform Levels
Services Native: HANA XS, … Open: Java, other,…
HANA Database Platform
Leverages
Infrastructure as a Service

SAP S/4HANA Extensibility
Benefits for Users, LoB and IT
End User Line of Business IT
Modern user experience Win the competition Combine cloud qualities and
• Fiori-like UX and mobile usage of • Extend business processes high degree of flexibility
custom specific extensions • Faster cycles of innovations • Fast implementation
• Seamless integration in standard • Business users can easily apply • Extensions don’t impact operations
and 3rd party solutions changes without risk (rules etc.) • Patches / Upgrade in regular
• Easy personalization cycles
• Scale by standardization and
automation
S/4HANA On-Premise
Pricing
S/4HANA OP Application pricing model – 2016 onward
S/4HANA Enterprise Management is priced for adoption
S/4HANA in 2015 S/4HANA 2016 onward

Net New & existing ERP customers Existing ERP customers Net New ERP customers
S4 Industry & LoB Solutions S/4HANA Industry & LoB Solutions S/4HANA Industry & LoB Solutions
Cash Mgmt. Central Finance Cash Mgmt. Central Finance

… … … …
Revenue Revenue Metric Metric Revenue Revenue Metric Metric
Metric Metric
S/4HANA Foundation Promotion Named

Named S/4HANA Enterprise Management • SAP S/4HANA Enterprise Management for
[7018105] Users
Users for ERP customers Professional use [7018652]; € 3.500*
€0 Fee Peruser
Per userfee
fee [7018538] Named
Named • SAP S/4HANA Enterprise Management for Productivity
Users
Users
€9000 Flat-Fee* Use 7018653]; € 300*
Peruser
Per userfee
fee
ERP package • SAP S/4HANA Enterprise Management for Business
ERP package Partner Access[7018654]; € 1.200*
Flat fee (includes 5 Prof. named users
Flat fee (includes 5 Prof. named users)
User
HANA
HANA HANA
Run-time or Full Use Already have this
Run-time or Full Use Already have and Run-time or Full Use
can keep using
 SAP S/4HANA Foundation-Promotion ended on Dec 31, 2015; respective material code will be blocked once Q4 booking completed.
 SAP S/4HANA Foundation Promotion is replaced with SAP S/4HANA Enterprise Management; differentiated pricing starting January 2016:
 Existing ERP customers: S/4HANA Enterprise Management for ERP customers – Flat-fee; previously licensed Named Users can be used for access;
 Net New ERP customers: – S/4HANA Enterprise Management priced with a User metric.
 New S/4HANA LoB & Industry Add-ons are priced based on a single, value aligned metric. All Use rights are included.
* Regional uplifts and FX conversion might apply
©Strictly
2016 SAP SE or an SAP affiliate company. All rights reserved.
Confidential Partner 101
101
S/4HANA OP Application pricing model – 2016 onward
Metric is User; 3 price points aligned to key ERP use cases
User Based Pricing for Net New ERP customers:

three price points
3500€ / User*
SAP S/4HANA Allowed to perform all role required
Net New ERP customers Enterprise operations, including management and
Management for system administration tasks supported
S4 Industry & LoB Add-ons Professional use
by the Software for Licensee’s internal
[7018652]
business purposes.
Cash Mgmt.
Central …
Finance
Revenue Revenue Metric
300€ / User
S/4HANA Enterprise SAP S/4HANA Use is limited to one or more of the
Management Enterprise following transactions supported by the
Management for Software: Human capital management,
Productivity Use Procurement self-service, time reporting
[7018652, 7018653,
and data entry.
7018654] [7018653]
User
HANA SAP S/4HANA

1200€ / User
Run-time or Full Use Use is limited to Licensee’s Business
Enterprise
Partners in accordance with the license
Management for
grant set forth in the GTC or Software
Business
License Agreement.
Partner Access
[7018654]
S/4HANA Compatibility Pack
Concept & Details
KEY MESSAGE
“Compatibility Packs” allows the use of certain “Classical1 SAP Solutions” for a specific period of time, in
a licensed S/4HANA installation, provided the customer has [or acquires] licenses to such solutions from
the SAP price list classical tab
Classical ERP S/4HANA On-

Premise Scope
Scope + LoB and
Industry solutions
Compatibility Scope
1. “Compatibility Pack2” solutions fill the gap between the capabilities of today's classical portfolio and the capabilities of the
S/4HANA release. Over time, the compatibility packs will be phased out, as the scope of S/4HANA increases
2. Only “classical solutions” listed in the Compatibility Pack Matrix are available for the S/4HANA installation
3. Compatibility packs rights are implemented via legal language in the SUR Supplement
4. Customers must have [ or acquire] licenses of the compatibility pack classical solutions from the classical price list including
classical named users as required. Note: Net New ERP customers do not need to acquire licenses to the SAP ERP
Foundation Starter (ERP_Package). These rights are automatically included subject to the compatibility pack scope and
terms.
5. Compatibility pack classical solutions have the same restrictions as any other S/4HANA applications when used in an
S/4HANA installation. Note: the same classical solution can also be deployed on a non-S/4HANA installation where S/4HANA
restrictions do not apply
6. Use of compatibility pack classical solutions expires on Dec 31, 2020
1 Classical Solutions run on any database

2 Additional details are in appendix
Using other Classical Solutions w/ S/4HANA Deployment
Possible only in a side-by-side deployment
QUESTION
How can a customer deploy “non-compatibility-pack” classical solutions along with S/4HANA deployment?
• Classical solutions that are not listed in the Compatibility Pack Matrix cannot be deployed on the same server as S/4HANA solutions.
• However, such solutions can be used with an S/4HANA installation in a side-by-side deployment - meaning that these solutions must be
deployed on a separate server
• The licensing rules of these solutions will follow the classical dual metric monetization model. Customers must licenses the solution and the
appropriate named users from the classical SAP solutions portfolio.
• Separate licensing of “SAP ERP Foundation Starter” is not required by net new (ERP) customer in order to satisfy the pre-requisite of such
classical solution because rights to SAP ERP Foundation Starter is already included in SAP S/4HANA Enterprise Management – thus the
pre-requisite is satisfied.
• S/4HANA database segregation rules still apply i.e., all communication with the S/4HANA installation must be through business level APIs
• In Q1, 2016 we intend to bring S/4HANA named solutions, corresponding to a number of these classical solutions, with named user rights
included. This will progressively decrease the scope of this question.
Further Information
SAP S/4HANA Cookbook
http://scn.sap.com/docs/DOC-64980
Overview Core SAP S/4HANA Use Cases
Market to the Segment of One Real-Time Inventory Accelerated Material Advanced Sales Order Soft Financial Close Anytime
Management Requirements Planning Fulfillment
Increase Financial Business Engage Talent Across the Platform for All Industries Detect Potential Fraud Patterns Collaborative Work Patterns
Performance Organization in Real Time
Learn more via openSAP

You’ll get an insight into the key Uses cases with demonstrations  https://open.sap.com/courses/s4h3
Official road map
content available on
Service Marketplace
Product Road Maps > Cross Product > S4HANA
https://websmp102.sap-ag.de/~sapidb/012002523100006634812015E.pdf
© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Further Information
SAP S/4HANA OpenSAP Courses

SAP S/4HANA Cookbook
SCN Community
SAP S/4HANA Trainings
SAP S/4HANA Migration
Where to go for more information
sap.com/s4hana sap.com/s4hana-trial On-Premise edition trial
Public Cloud Trial
scn.sap.com/community/s4hana/ SAP Learning Hub https://go.sap.corp/S4HANA_FAQ
SCN Placeholder
https://training.sap.com/g/en/
Thank You!

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Digital economy Digital core Digital transformation

SAP S/4HANA value play Digital transformation of business models

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Simplified data model Simplified system landscape Simplified user experience

Elimination of aggregates Reduced number of systems Role-based engagement across

Example: Materials Management & Operations – Example: SAP S/4HANA Finance -

Accelerate execution Reduce total cost of ownership Increase user productivity

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SAP S/4HANA Enterprise Management

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SAP Business Suite SAP S/4HANA

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The Digital Core

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Streamlined Accelerated Optimized Enhanced

Sourcing and Contract Production Operations and Inventory and Basic

Inventory and Basic

Inventory and Basic Product Development and Service Agreement

Invoice and Payables

Quality Management and

Core Human Cross Application Time

Core Accounting and Financial Cost Management and

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Streamlined Accelerated Optimized Enhanced Core Human Core Finance

Invoice and Payables Maintenance

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SAP S/4HANA Capabilities Business Benefits

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Business Challenges SAP S/4HANA Capabilities Business Benefits

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Use Cases Technical Innovation Business Processes

Combined postings from One valuation method (Material Ledger)

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Business Challenges SAP S/4HANA Capabilities Business Benefits

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Business Challenges SAP S/4HANA Capabilities

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SAP S/4HANA Capabilities Business Benefits

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Inventory Management Material Material Available To Promise & Backorder Capacity

Order Management & Billing Procurement

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Primary GLPCT Totals

MATDOC Material BKPF ACDOCA

SIMPLE DATA MODEL PRINCIPLE OF ONE THROUGHPUT INCREASE