Lessons Learned from Real World

S/4HANA Projects from 2019 to 2021

Tim Nguyen, Navajo Tribal Utility Authority (NTUA)

Rajan Arora & Rajesh Gupta, Deloitte Consulting LLP
 Agenda

• Brownfield – is it a trend?

• SAP S/4HANA Embedded Analytics – the potential “big win”

• SAP S/4HANA Embedded HCM available in November 2022

• SAP Fiori Adoption

• Adoption of S/4HANA Central Finance

• Challenges for large ERP customers

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 SAP S/4HANA Brownfield Implementation – Is It a Trend ?
• SAP S/4HANA implementation option:
• Greenfield: start over and bring data over from SAP ECC – good in some situations
• Selective data transition: migration while bringing only data that you “need”, with pros & cons
• Brownfield: bring everything, so more or less a technical upgrade, but with lots of caveat & work
• Up until early 2019, a lot of people did Greenfield, but things started to change in mid-2019
• Brownfield allows for a quicker implementation cycle, likely with lower risks
• For Brownfield implementation, will need to pay close attention to the CVI (Customer Vendor
Integration) process – data quality is critical, and there may be a need for archiving
• SAP offers boot camps for your SAP team to get real world experience and to practice Brownfield
• So, is it a TREND? Some customer with successful Brownfield migrations in 2020 & 2021:
• Fairfax Water: 8 months project from SAP ECC 6 EHP8 with Enterprise Support Guide
• Enbridge Gas: 9 months project from SAP ECC 6 EHP6 with MaxAttention
• NTUA: projected 10 months project SAP ECC 6 EHP7 with ActiveAttention
• YOU CAN DRAW YOUR OWN CONCLUSION !
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SAP S/4HANA Embedded Analytics
A Hidden Gem & a Potential “Big Win”

• S/4HANA Embedded Analytics is included in the license cost for S/4HANA

• Leverage hundreds of HANA CDS views to provide real-time access to critical data in the main system as well as
replication of data, and blending with multiple other sources for end-to-end enterprise intelligence
• Uses SAP Fiori for easier implementation of dashboards for “unlimited” analytics (with the right architecture)
• Integrate seamlessly into the enterprise intelligence offerings such as SAP Analytics Cloud or BW/4HANA
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 SAP S/4HANA Embedded Analytics
SAP HANA 2.0 Active-Active (Read-Only) Architecture for No-Risk S/4HANA Embedded Analytics

• The operation of S/4HANA Embedded Analytics should not interfere with the OLTP Production system
• SAP HANA 2.0 Active-Active (Read-Only) Architecture was designed for Disaster Recovery & Business
Continuance: this is an out-of-the-box solution from SAP for logs replication & for the secondary DB to be active
• This architecture can also be leveraged for “unlimited” analytics since OLAP activities will be read from Site B
• SAP S/4HANA analytics query can be built with hints to take advantage of this special architecture

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 SAP S/4HANA Embedded Analytics
SAP HANA 2.0 Active-Active (Read-Only) Architecture for No-Risk S/4HANA Embedded Analytics

• SAP FIORI clients use the ODATA protocol

to communicate with the S/4HANA ABAP
backend, & an accepted max-age can be
specified in number of seconds
• This example shows how a FIORI client with
an accepted max-age of 59 seconds
receives data from the secondary database
• Accepted max-age can be between 1 to 59
seconds to force the SAP Analytical Engine
in the ABAP server to add the suitable
database hints for the right database to be
accessed

OpenSAP Course Available

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 SAP ECC 6 HR & Payroll with S/4HANA – Myths, Facts, & Reality
• So, you are a HAPPY customer running HR & Payroll on SAP ECC 6 but planning to move to S/4HANA
– what are your implementation options for HR & Payroll?
• Is moving to SuccessFactors a requirement?
• Do you have to run HR & Payroll in ECC 6 as a “sidecar” alongside S/4HANA?
• Or is there a DIFFERENT approach that will work with a minimum of hassles?
• What is the future road map for SAP HR & Payroll under SAP S/4HANA?

While SAP continues to push its customers to move to SuccessFactors, SAP also recognizes that some
customers will not go immediately:
▪ SAP currently allows customers to run its current HR/HCM functionalities in a S/4HANA
Compatibility Pack mode – Fairfax Water is currently using it in Production!
▪ Q3 2022: SAP will release the Human Capital Management for S/4HANA on-premise edition –
it will be a license swap & additional costs
▪ The HCM for S/4HANA will only work on SAP HANA & will incorporate many functionalities
currently found on SuccessFactors
▪ SAP expects its customers to eventually move to SuccessFactors
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 SAP S/4HANA HCM On-Premise Edition
Solution for Now and for the Future

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 SAP HCM Roadmap for S/4HANA Customers
As Of 3Q 2021

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 SAP Fiori Adoption
Why SAP Fiori? - SAP Fiori is the way business users consume SAP S/4HANA innovations

Digital Age User End-to-end Analytics New Business Intelligent

Experience & Real-time Steering Models Automation

SAP Fiori apps Embedded New processes Situation Handling,

simple, responsive, Analytics & only available with ML/AI proposals
adaptive & work Translytical apps SAP Fiori consumed via SAP
with chatbots Fiori, iRPA

iRPA - Intelligent Robotic Process Automation ML – Machine Learning AI – Artificial Intelligence

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 SAP Fiori Adoption
Managing the pace of organizational change - introduce at least some new business value early

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 SAP Fiori Adoption
Organizational Change Strategies

Strategy New Business Value Org Change Impact

SAP GUI Only None Very Low

Single Entry Point: Very Low Low

- Fiori launchpad in browser
- SAP Business Client Launchpad Connection Very Low Very Low

Showcase first: Low Low

- Roles or Process
- Specific Innovations first Medium Medium

SAP Fiori first High High

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 SAP Fiori Adoption
Rapid Activation - Experience SAP Fiori as-delivered in Sandbox quickly, refine later in Development

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 SAP Fiori Adoption
SAP Fiori Cloud

• Front end system runs on SAP Cloud

Platform

• Simplifies SAP Fiori implementation

and accelerates time-to-value while
leveraging existing investment.

• Secure channel to on-premise

backend via cloud connector.

• Single point of access to all SAP Fiori

apps for all device types.

• Extensibility option using cloud-based

tools like Web IDE.

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 Adoption of S/4HANA Central Finance - Roadmap to SAP S/4HANA
SAP S/4HANA can be implemented through either a Big Bang Approach or through a Phased
approach.

Option 1 Option 2 Option 3

Start with Central Finance Big Bang with
Alternatives: Central Finance as part of Roll Out S/4 HANA
SAP ERP SAP S/4
HANA
SAP S/4
SAP S/4 SAP S/4
Any DB HANA HANA
HANA HANA
Any ERP HANA HANA
Any ERP HANA

Any DB
Any DB

• A separate SAP S/4HANA instance used • SAP S/4HANA prototype for one or • A new consolidated SAP S/4HANA
Key for replicating data from existing ERP more business units including global Enterprise instance including
Characteristics: systems design and focus on data/reporting centralized database for Finance
• Harmonized reporting leveraging in- first transaction processing, data
memory computing • Phased roll-out for remaining structuring, and advanced reporting
• Gradually migrate legacy ERP to SAP business units
S/4HANA
• Customers looking to change operations • Customers looking to fully modernize • New or Existing SAP customers
Common gradually but leverage benefits of and integrate their SAP architecture • Customers looking to quickly retire
customer consolidated financials. while minimizing risk and impacts on legacy systems
attributes: • Customers with multiple ERP platforms business operations • Customers adopting new processes and
and want to slowly phase out financial systems design
• Customers with highly customized /
complex SAP installation
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 Adoption of S/4HANA Central Finance – Deliver Value to Enterprise
• Stay agile and innovative, with little disruption to business
• Gain a competitive advantage with an accelerated path to finance and digital
transformation
• Save time and cost with fewer resources required
Business • Shorten time to value compared to a full-scale upgrade

• Create a single source of truth for planning and reporting

• Profit from real-time reporting, advanced analytics, and reliable forecasting
• Eliminates many traditional, inefficient reconciliation needs
Finance • Step up into a more influential role with more time to deliver analytical and strategic insights to
the business.
• Enable a real-time soft close at any time

• Consolidate existing SAP and non-SAP ERP systems without needing to retire them
IT • Adopt new innovations and adapt to changing circumstances more quickly and flexibly
• Roll out new capabilities incrementally according to actual needs
• Avoid disruption to running systems thanks to real-time data replication
• Gain instant insight into all connected systems at any time

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 Adoption of S/4HANA Central Finance – Take Away

• Customer can use Central Finance as a steppingstone towards full SAP S/4HANA adoption.
• Central Finance will provide Customer a centralized platform, SAP S/4HANA capabilities, and selective
finance transformation.
• Customer can deploy Central Finance for central reporting & planning, central process orchestration and
central transactional progressively or in one roll out.
• Customer can build a business case by gathering current-state challenges from stakeholders and
identifying where value opportunities exist.
• The key drivers of cost are scope, timeline, cloud versus on-premise, and extended reliance on third
party support.
• Centralization of other non-Finance applications can increase the integration and value of Central
Finance and simplify the IT footprint.

17 © 2021 ASUG Confidential

 Challenges for large ERP customers

• Stakeholder Buy-in: Business value proposition should include innovation with minimal disruption
and aligned with SAP Roadmap.

• Disorganization and confusion: Requires a comprehensive plan cross applications, middleware

and non-SAP systems.

• Insufficient preparation of the legacy system: Success of conversion dependent on how carefully
the legacy systems is prepared and detailed planning.

• Complexity of data transfer: Moving data from SAP ERP (ECC) to S/4HANA is challenging if you
don’t properly prepare for conversion.

• Customization may be so extensive that it would be difficult or even impossible to migrate without
major undertaking and cost. S/4HANA CFIN and Cloud approach may also be a positive change that
can make customers rethink their overall strategic direction.

Change is necessary, and it opens doors to newer opportunities.

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 Questions?
For questions after this session, contact us at [email protected]

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 Thank you.
Additional text here.

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