S/4HANA Finance - SAP runs SAP - CFO Breakfast

SAP Runs SAP – S/4HANA Finance
Bernhard Luecke
November 2015 (update)

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 2Public
Agenda
 S/4HANA Finance @ SAP – our Journey
 Business Benefits
 Your Journey to S/4HANA Finance

S/4HANA Finance @ SAP -
Our Journey

SAP Global IT Today
… a Key Driver for Innovation
 World class business solutions and infrastructure services
– Global, single-instance business systems
 Global shared services on ERP, CRM, HCM, SRM
 Hybrid Cloud: e.g. CRM on HANA + Cloud for Customer
 SuccessFactors + On-premise HCM with 53 country payrolls
 > 3 million users on SAP Community Network
– Global Scale: 70 countries, 251 locations
– MaxAttention (premium support) customer
 Powering SAP’s transformation
 Thought leader for IT-driven innovation and best practices
– Always SAP’s first ramp-up customer; “SAP Runs SAP”
– Co-Innovation for in-Memory Technology and Mobile Business Solutions

Facts and Figures
SAP as a Service Provider - Technical Financials Framework
Main Systems
ERP (one client), CRM, HR, BI
ERP: 525 company codes (262 active), 77 countries, 1,9 Mio customers,
395.000 vendors, one controlling area and one operating concern
Financials Applications
General Ledger, Financials, Real-Estate, Treasury ,
Consolidation, Controlling, Planning & Consolidation, Reporting
Data Volume FI (Fiscal year 2013) Data Volume CO (Fiscal year 2013)
~ 6,3 Mio Document Header ~ 90 Mio CO Line Items
~ 25 Mio FI Line Items ~ 5,8 Mio CO Totals
~ 129.000 FI Totals ~ 30.000 active Profit Centers
~ 175.00 FI Totals ~ 21 Mio Profitability Segments
~ 27 Mio entries for IndexTables
* no longer used with SAP Simple Finance
Processes
 Quote to close –
 Order management
 Invoicing
 Travel & expense
management
 Record-to-close
 Purchasing
 Controlling

SAP Runs SAP
First and best reference customer
SAP JAM Corporate-wide standard
Cloud for People
67,000+ users on
SuccessMap
Cloud for Customer
Integrated with
on-premise CRM
ARIBA
Top 3,300 Supplier
via Business Network
Cloud for T&E
Main markets live,
Rollout in process
Public Cloud
 No capital investment
 Cost effective
 SLA‘s, predictable,
reliable
 Pay-as-you-go
Powered by SAP HANA Enterprise Cloud (HEC)
ERP on HANA
with SAP S/4HANA Finance
67,000+ users
ERP for all core Financial
processes
Implementation in 5 months
BW on HANA
4,500+ users
SAP’s Financial Reporting
Implementation in 5 months
Private Cloud
 Dedicated environment
 Control of data location
 Security and control
 Elastic and flexible
Full Cloud HCM
transition in process
CRM on HANA
15,000+ users
All Marketing, Sales, Services,
Finance etc.
Implementation in 2.5 months

SAP Business Suite powered
by SAP HANA, SAP NetWeaver BW
(2013)
SAP Business Suite
SAP HANA as
side-by-side scenario
(2012)
S/4HANA Finance
(April 2014)
• Real time Sales pipeline reporting
• Profitability analysis and Profit center
accounting reporting real time
• Receivables Manager
• Business Planning and
Consolidation application integrated
to SAP NetWeaver BW
• Change of currency evaluation for
constant currency calculation to
document currency
• Usage of BW Workspaces
• SAP Fraud Management
• ERP & CRM on HANA
• Environmental Resource
Management
• Working Capital Management
• Invoice and Goods Receipt
Reconciliation
• Receivables Manager & Financial
Fact Sheet
• Type Ahead Search / Fuzzy Search
• Integration of legal & internal
management views on line item level
• No more aggregates / indices in FI &
CO
• Fiori
SAP’s Internal Platform Adoption Roadmap
Any DB
SAP
ERP
SAP HANA
(*) Financials Add-On for SAP Business Suite powered by SAP HANA
SAP ERP
SAP HANA
Fin Add-
On (*)
SAP ERP
SAP HANA
SAP
CRM
SAP HANA
SAP BW
SAP HANA

(2013)
SAP Business Suite
SAP HANA as
(2012)
to SAP NetWeaver BW
document currency
• Cash and Liquidity Management
Management
Reconciliation
Fact Sheet
Any DB
SAP
ERP
SAP HANA
S/4HANA Finance
(April 2014)
CO
• Fiori
SAP ERP
SAP HANA
Fin Add-
On (*)
SAP ERP
SAP HANA
SAP
CRM
SAP HANA
SAP BW
SAP HANA

SAP’s Internal ERP on HANA: Key Implementation Highlights
SAP ERP on HANA in less than 5 months – Go Live August 21st, 2013
Business Highlights
• First global Go Live of SAP ERP
on HANA
• 67.000 ERP user worldwide
• Implementation in 5 months
• Enables effective and close
collaboration between all business
areas
Technical Highlights
• Significantly faster database request
time of single processes
• Data volume reduced from 7.1 TB to
3.7TB, down to 1.8 TB in HANA
• More than 3.000 unused custom
code objects retired
• HANA import runtime reduced by ~40
hours

S/4HANA Finance
(April 2014)
CO
• Fiori
SAP ERP
SAP HANA
Fin Add-
On (*)
SAP Business Suite
SAP HANA as
(2012)
Any DB
SAP
ERP
SAP HANA
(2013)
to SAP NetWeaver BW
document currency
• Cash and Liquidity Management
Management
Reconciliation
Fact Sheet
SAP ERP
SAP HANA
SAP
CRM
SAP HANA
SAP BW
SAP HANA

AugustApril
SAP‘s ERP journey @ a glance – S/4HANA Finance as driver for
excellence
2013
Move to HANA in 5 month
Main Technical Value
 Data footprint reduction from 7,1
TB to 3,7 through rigid data
management
 HANA database compression
from 3.7 TB to 1.8 (factor > 2,5)
 Significant less storage space
on disk needed in comparison to
previous database system
 New monitoring and analysis
features with HANA studio
Main Business Value
 Fast close enablement - 28% of
processing time removed. New
quality through real time analysis &
continuous intercompany
reconciliation.
 Simplified Receivables
management - removal of offline
backend processes & finance & Sales
working on unified record level. DSO
reduction of 10%
 Risk & compliance - fraud detection
monitoring. Real time screening for
anomalies.
February April

AugustApril
Summary: SAP‘s ERP journey @ a glance – S/4HANA Finance as
driver for excellence
2013
Move to HANA in 5 month
 Data footprint reduction from 7,1
TB to 3,7 through rigid data
management
 HANA database compression
from 3.7 TB to 1.8 (factor > 2,5)
 Significant less storage space
on disk needed in comparison to
previous database system
 New monitoring and analysis
features with HANA studio
Main Business Value
 Fast close enablement - 28% of
processing time removed. New
quality through real time analysis &
continuous intercompany
reconciliation.
 Simplified Receivables
management - removal of offline
backend processes & finance & Sales
working on unified record level. DSO
reduction of 10%
 Risk & compliance - fraud detection
monitoring. Real time screening for
anomalies.
2014
Move to New GL & S/4HANA Finance in 2 ½ month
 Huge simplification of code.
materialized aggregates all replaced
by SQL statements for aggregation
on the fly, database indices dropped
 Dramatic data footprint reduction.
Final HANA database size targeted
~500 GB. Reduction in FI/CO from
234 to 106 GB (factor 2,2)
 Performance gains through Scale
out: equal distribution of tables,
memory on master: 1,194 TB, on
slave: 0,654TB
Main Business Value
 Business agility – adopt to new
Business realities : reflection of
organizational changes on the fly
(from 1 week to 1 day)
 Financial Insights - integration of
legal & internal management views
on line item level
 Inherent reconciliation -
reconciliation efforts eliminated by
operating against a single set of
granular data
 User Experience
February April

Business Benefits
Selected Examples
- Highly accelerated performance of usual business process
- User Experience increasing end user efficiency
- Changed business process based on realtime capabilities and adjusted user interface

HANA enables new business scenarios
Profitability Analysis
> 26 h
Expected iteration (at least 4 times)
< 4 h
Profitability Analysis reduced from 26 hours to less than 4 hours even with more detail level
CO-PA Closing TWO days earlier!
Yesterday in the life of a Controller Today based on HANA

Business Value
Receivables management
preparation
scheduled
alignment
follow-up
action
feedback
and close
period end
F&A/
backoffice
backoffice/
sales
sales /
customer
F&A/
backoffice
KPI
monitoring
follow up
action
F&A/
backoffice
sales /
customer
Before
with Suite on HANA
• Monthly preparation of critical receivable situation by
collections department
• Scheduled alignment calls between collections department and
Sales to discuss late payment situations
• Sales follows up with the customer based on offline information
(xls, print-outs, …)
• Sales provides feedback to the collections team via e-mail /
phone calls for the collections team to close the „case“
• Real time data availability and increased performance allows
for continuous monitoring of the receivable situation
anywhere and anytime. Starting from high level KPI view
down to the individual line item.
• The collections department and sales interact on individual
record, online and integrated in ERP
• Sales can trigger actions directly updating the ERP record.
Instantly visible to the backoffice.
days sales
outstanding
(DSO)
by 10%*
KPI
* Target after
complete roll out for Finance & Sales

Business Value
closing process – event triggered automation
Before
enhanced – with S/4HANA Finance
• Access to real time data and improved performance enable the re-design of
mass data processes at month-end to be replaced with event triggered
execution e.g. :
• Event triggered accruals (e.g. revenue recognition & software deferral
automation)
• Software posting will be the event for maintenance invoicing and
accrual posting
• Deal closing event will initiate commission process including accrual
posting
• Full process transparency with clear accountabilities and alerts allows
Controlling to act on exceptions and anomalies as they occur.
Elimination
potential of
22% of as is
closing efforts
(business
case)
General
ledger
close
consoli-
dation
period
end
reporting
ongoing
transactions
• Monthly closing done for 173+ operative entities & branches with
an average of 100+ activities to perform per closing entity leads to
significant transaction volume at month end and time intensive
posting cycles for mass data processes (e.g. maintenance
spreading, order settlements, deferrals, accruals, assessments)
• Significant effort for internal (non legal) booking to reflect special
ledger cases
• Little transparency into local closing activities and their
dependencies due to scheduled batch processes.
KPI
batch
processing
General
ledger
close
batch
processing
consoli-
dation
period end
aggregation
(BW)
reporting
special
ledger
close

Business Value
organizational change - reflection of organizational changes
Time to
implement
org changes
from 1 week
to 1 day
• Through real time availability and increased performance, the
impact of hierarchy changes on performance data can be simulated
immediately (“what if” scenarios)
• Master data can be flexibly enhanced with additional steering
dimensions as needed, which allows for performance analysis
based on multiple (concurrent) organizational views.
• Updates to related accounting objects can be automatically applied
upon finalization of the model, with the possibility of re-alignment of
historical postings
Develop
ToBe model
udpated
reporting
Data
preparation
Impact
analysis
Finalization of
ToBe model
Update
transactions
Develop
ToBe model
Impact
analysis
Finalization of
ToBe model
Before
• Analyzing the impact of upcoming organizational changes is very
manual as reporting layers usually don’t provide the necessary
level of detail and required analysis dimensions.
• Extraction and preparation of relevant data from source systems
slows down reaction time and reduces focus on modeling and
analysis.
• Once the new organization model is finalized, batch processes
need to be prepared to update transactional data.
• In parallel, the reporting environment needs to be adjusted to
reflect the new aggregation logic.
KPI
with S/4HANA Finance

Business Value
financial insights – end-2-end analytical capabilities
Before
with S/4HANA Finance
• Today, legal accounting is separate from Management accounting (based on
profit center and Profit center hierarchies)
• The two views can not be easily combined (e.g. Accounts Receivable does
not provide Information about Profit Center)
• Management reporting is based on aggregates with a set of pre-defined joins
with no possibilities to further drill down, e.g. Information about DSO is
available on company code and LoB only, but cannot be broken down to a
specific area of responsibility (Profit Center).
• Data structures are harmonized and integrated to form one logical
document across FICO (Accounts Receivable are combined with Profit
Center Information)
• Reporting is based on line items (no aggregates), therefore, new reporting
requirements can be easily implemented based on new FICO joins/views
• This allows to perform end-to-end analysis and define new responsibilities
in many areas. E.g.
• Cash Management as integrated part of Business Steering (e.g. more
granular on DSO)
• Tax optimization (e.g. I/CO agreements for management license,
management overhead etc.)
Optimizing Cash
and saving
costs Margin
increase of
1 ppt
Legal
accounting
Mgmt
accounting
aggregation
Operative
Mgmt
Reporting
Segment
Reporting
Legal
accounting
Mgmt
accounting
Operative
Mgmt
Reporting
Segment
Reporting
KPI

S/4HANA Finance @ SAP
Major values realized
Account Receivables
Receivables Management
Books Closing
Fast Close Enablement
Intercompany reconciliation
Real-Time capabilities
Simple receivables
management through
integration of finance and
sales functions
10%
Shifted focus from data
preparation to analysis and
interpretation
Improvement on
processing time
Reduction in G/L
posting corrections
Intercompany reconciliation
moved to a real-time process
SAP HANA platform
No aggregates
Increased performance
Reduction in
time to
process
reconciliation
issues
Days sales
outstanding
reduction
28%
40%
70%

SAP runs SAP in Finance & Controlling
Benefits and KPI‘s
Financial
Close
On SAP
HANA
86%
faster
Real-time
analytics
91 %
faster
67,000+
Users
74 %
faster
Asset
Depreciation
Real-
time
Revenue &
Profit and Loss
Reporting,
Intercompany
reconciliation
420
Hours less
processing time
at quarter end
close
17%
faster
Software and
Maintenance
Billing
42%
faster
Automatic Cost
Accrual Postings
173+
Operative
entities and
branches
1,300+
Colleagues
involved in
closing activities
100+
Closing activities
every
month/entity (in
average)
8 ½
day
Closing,
including group
consolidation
Automatic
Maintenance
Revenue Accruals
Search
Type Ahead
Search / Fuzzy
Search

System enablement and transformation
Our S/4HANA Finance Journey in 2014
October 2014
FIORI Smart Business
 First scenario on improved transparency due to integrated
FI/CO View
 Enjoyable Finance transactions with FIORI transactional Apps
 High value business insights with FIORI smart business
 Easy to consume reporting
 HANA Enterprise Search
November 2014
New functionality
 First Dashboard available for easy to access Insights
 Cash Management functionality trough FIORI Apps (transact./ analytical)
 First Optimization of Processes with New GL & S/4HANA Finance Funct.
 Further improve transparency due to integrated FI/CO View
 Further Memory Footprint reduction (Aging & Housekeeping)
 Further Enjoyable Finance transactions wi/FIORI transactional Apps
2015+ beyond
Further automate Finance Processes
 Further Enjoyable Finance transactions w/FIORI transactional Apps
 Dashboard available for easy to access Insights
 Smarter Operations – one document provides more business insights
cross application
 Increased flexibility and adaptability
 New business insights with forward looking close
 Smart landscape
April 2014
S/4HANA Finance Foundation
 Leverage S/4HANA Finance to improve
performance
 Significant reduction of Data memory
footprint

What is your journey to
S/4HANA Finance?

What is SAP S/4HANA Finance?
Transformative business value
from real-time analytics
enabled by HANA
New consumer-grade user
experience for all devices
provided by BI and Fiori
Easily consumable as a
managed service from the HANA
Enterprise Cloud
(or continued on-premise)
+ +
S/4 HANA FINANCE IN A NUTSHELL
SAP S/4 HANA Finance is a non-disruptive evolution of SAP’s unrivaled portfolio of global financial solutions based on
SAP HANA. It delivers instant insight anywhere for CFOs and Finance departments around the world to help them
transform their business in a rapidly changing world.
Flexible on-the-fly reporting enabling
interactive analysis and simulation of complex
business situations.
Personalized, responsive and simple
consumption of analytics, dashboards and
reports across devices.
Easy and flexible adoption of innovation based
on simple solution architecture with complete
choice of deployment.

SAP S/4HANA Finance
Scope and Value
S/4 HANA
SAP HANA Platform
Aligned
Single source of truth
Agile
Real time processes
Predictive
Dynamic planning and analysis
SAP Cash Management
powered by SAP HANA
New product for
group cash management
SAP Accounting
powered by SAP HANA
Alternative in-memory
functionality for ERP customers
Integrated
Business Planning
New capabilities and enhanced
integration for ERP and BPC.

SAP S/4HANA Finance
Non Functional Value Proposition
Data
Compression
Data
Throughput
Flexibility
No
Reconciliation
 Data are only stored once
(no totals and indices)
 No replicated data =>
volume restricted to a minimum
 Only one database table to be
updated => fast data throughput
 Full Parallelization applied as
no data dependencies
(table locks)
 Reconciliation build in
 no aggregates
 FICO Merge
(OneDocument)
 Data only stored physically once
As consequence, adaptions or extensions
done only at one place.
 No additional persistences – no data
migration or reconciliation

Taking Finance to the next level
SAP live on SAP S/4HANA Finance since April 2014
Business Stability on the one hand and Accounting Stability is no more a contradiction
Inherent Reconciliation Flexibility in Reporting
New applications and User Experience
Business Agility
Think about:
• Merge of silos - no more bridging of
disconnected data silos
• Reconciliation effort eliminated by
operating against a single set of
granular data
Think about:
• Single source of truth with atomic
detail all data is kept only once and at
the finest detail
• Pre-defined aggregates are replaced
with on the FLY analysis
Think about:
Acquisitions and re-organizations break
the continuity from past results to future
scenarios
This disruption is eliminated by running a
system of record on LINE ITEM level
without persistent aggregates
Immediate business value:
• Seamless navigation from balance
sheet view into any dimensionality
• Integrated view on external and
internal management reporting
Immediate business value
• No more limitations in analytics
• New views into ad hoc explorations
Immediate business value
• Unlimited simulations - apply historic
data to new business context
• Model the future based on actuals that
can be looked at any dimensions

Roadmap Workshop Agenda General (Structure)
Step 1
• Overview
SAP Platform
• Evaluate the
business value
Step 2
• Discuss
migration &
deployment
• Create a value
driven transition
roadmap
Onsite
Preparation
• Questionnaire
• Agenda details
Post
Processing
• Summary
• Next steps
Remote Remote
Out of scope
• Detailed steps of a system migration (can be discussed in a “Migration Planning Workshop” from SAP AGS).
• Impact on the IT infrastructure and architecture (can be covered in a “Technical Architecture Workshop” from SAP AGS).

Find more information here
www.sap.com/finance
 Experience the Journey Map
simplefinance.sapjourneymap.com
 Sign up to the
Finance Newsletter
www.sap.com/finance-newsletter
S/4HANA Finance

Cutover Process SoH
Trans-
ports
Down Time for End Users
Point of no return
Timeline Friday Saturday Sunday Monday
Ramp
down/
User
Lock
Migration
Tuesday
Trans-
ports
9am 9pm
Post-
Steps
Consistency
Checks
Up-
grade
Safeguarding
Wednesday
3pm CEST
10pm
Spot
Checks
Full Ramp-up
Safeguarding
handover
3am
Controlled Ramp-up
Down Time for End Users
Point of no
return
Ramp
down/
User
Lock
Migration
Post-
Steps
Consistency
Checks
Up-
grade
Safeguarding
Spot
Checks
Full Ramp-up
Safeguarding
handover
Controlled
Ramp-up
ERP@SAP
accelerated
cutover
option

April
Friday, 25 Saturday, 26 Sunday, 27
CET 04:00 08:00 12:00 16:00 20:00 00:00 04:00 08:00 12:00 16:00 20:00 00:00 04:00 08:00 12:00 16:00 20:00
ACTUAL
Ramp-
down,
=6 hrs
New GL and Fin. Add-on Data Migration
17,5 hrs
(including preparation, post steps,
4 hrs buffer released)
Data Validation
5 hrs (optimized
. execution)
Upgrade
SRM, EhP7, sFIN , CEE SP22,
SPAU
12hrs
5:00
Long Term
Backup,
Restore ISB
5hrs6:00
Biz Verify
6 hrs
IT„Spot”
Biz“Spot”
15:00
17:00
NGL+Pre
p2:15
hrs
Data Migration
9:30 hrs
Post Steps
5:45 hrs
22:30 9:30
Backup, Restore, ∆Spau
(bug w/ profile imports)
11,5 hrs
10:00
12:00
3:30
HANA
Rev.74
Backup+
Delta
Spau
~5 hrs
PLAN
Ramp-
down,
~6 hrs
~21,5 hrs
(including preparation, post steps, 4 hrs buffer)
Data
Validation
~11,5 hrs
Upgrade
SPAU
~16hrs
9:00
Long Term
Backup,
Restore ISB
~ 5hrs
6:00
6:30
Biz
Verify
~3hrs
.IT„Spot”
Biz“Spot”
20:30
17:00
19:00
3hrs
Buffer
4hrs
Buffer
2hrs
Buffer
22:00
Implementation and Solution S/4HANA Finance
Cut-Over Plan @ a glance
Uptime
17,5 hrs
(including preparation, post steps,
4 hrs buffer released)
Data
Validation
5 hrs
Upgrade
SPAU
12hrs
New System
Biz Verify
6 hrs
Ramp-
down,
=6 hrs
Delta Replay of
recorded
productive data
1 day
Backup
5hrs
Finaldelta
replay
Delta
migration
Technical
validation
System
switch
1h 1h 1h 1h
Downtime (technical 4 hours)
System
Copy
Data created during productive system operations is recorded
Analyze
original
data
NEAR ZERO DOWNTIME APPROACH

SAP’s Internal CRM on HANA: Key Implementation Highlights
Migration to CRM on HANA
 10 weeks for implementation
 Big Bang Implementation (Global, all Lines of
Business)
 Search performance 250x
 65% additional database compression
 Standard sales reports down from 5 min to 30 s
 Complex reports down from 45 min to < 1 min
 High availability and disaster recovery
 Less than 5% of custom code adjustments
 Connectivity to 20+ downstream systems
Solution Scope
 Global single-instance for Marketing, Sales &
Inside Sales, Services, Support, Partner
Management, Finance and Data Management
 15,000+ business users
 Processes
• Lead to Opportunity
• Opportunity to Quote
• Quote to Close
• Interaction Center Management
• Account Planning
• Marketing & Campaign Planning
• Territory Management
• Single Sales Pipeline

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