Are You Fit For S4hana Sqs Webinar

Transforming the World through Quality
sqs.com
Are you ‘fit’ for S/4 HANA?
Sadanand Kotasthane, Global Head of ERP Practice
Introduction
• Sadanand has over 24 years of experience in enterprise‐wide IT transformation,
solution design, architecting and QA.
• 20+ years in deployment of various SAP technologies & solutions for Upgrades,
Migrations, Roll‐outs, Implementations etc.
• In various domains such as manufacturing, logistics, airlines, retail, utilities, pharma
etc.
• Worked for SAP Global Consulting where successfully setup and managed the SAP
Upgrade Assessment Competency Center
• Served hundreds of SAP customers every month
• Currently working in SQS Software Quality Systems group (Transforming the world
through Quality!) as Director ‐ ERP Practice.
Passionate to help customers to improve their SAP experience!
© SQS Group Limited | Are you ‘fit’ for S/4 HANA? | Public | Version 1.0 | 2
Digital Transformation
Maturity in using ERP / CRM / SCM / IS‐x / BI … solutions
and Relativity in “Digital Transformation”
Innovation
System of
Differentiation
System of
Record
• New technologies, ideas or approach
System of Innovation • IoT, Design Thinking, Hybrid Landscaping
• Limited Audience
• Create organizational agility through
System of Differentiation adaptive and cross applications E2E processes
• Processes unique to organization
• Strong, stable foundation
• Pace of change is slow (avg. 7+ year cycle)
System of Record
• Provides location for common ideas
• Core transaction processing
Adapted Gartner© Pace Layer Diagram
High rate of change.
Innovation Layer Exploration focused.
Deliver lessons‐learned and possibilities
for investment
Modern rate of change.
Systems of Differentiation Investment focused.
Expose standardized data, services
& capabilities
Slow rate of change.
Systems of Record Efficiency focused.
The SAP Transformation
Background – S/4 HANA
Background – SAP Solutions
2013
Each Phase represents a major change
SAP R/2 2009 in architecture and code and the
mainframe
pending end of the earlier technology
SAP R/3
client‐server 2016
Extended
1.0 2.0 3.0 4.0 … 4.6 4.7 Support +4%
2017
SAP ECC
enterprise architecture
5.0 6.0 EHP1 … EHP7 EHP8
SAP HANA ERP (BS)
in‐memory – cloud option
Cloud S/4 Hana 1511 1610 1710 …
2013
1979 1992 2004 2015
A view on Digital Transformation & S/4 HANA
Hasso Plattner (Chairman & co‐founder of SAP SE)

“This is where the world is going, direct access from anywhere to any type of data, whether it’s
a small piece of data or a small answer but a long algorithm to create that answer. The user
doesn’t care about this.”
Dr. Wieland Schreiner (SAP EVP responsible for SAP S/4 HANA)
“…strong innovation can drive business. Enterprises can now easily connect to people, devices,
and business networks to deliver new value to their customers – the Internet of Things and Big
Data become accessible to any business. Enterprises can dramatically simplify their processes
and change them as needed to gain new efficiencies.”
A view from Gartner on S/4 HANA
Derek Prior, Duy D Nguyen, Massimo Pezzini:
• To be successful with SAP S/4 HANA, all CIOs and ERP leaders must address many issues,
including application strategy, application integration strategy, software licensing, service
provider experience and infrastructure options!
• Identify if and how S/4 HANA fits your postmodern ERP strategy, and update the strategy
accordingly
• Evaluate the business impacts and benefits of S/4 HANA, and build these into a convincing
business case
• Select expert consulting service providers
• Secure the necessary internal business and IT resources
• Build an implementation plan
Market Trend: Significantly More CIOs Expect to Increase
Spending with SAP than Decrease (Courtesy: MORGAN STANLEY research)
The ratio of spending on SAP ORACLE
was 4% in June 2016 from 6% in
SAP
Oct 2015. Currently the
spending ratio is increased to Microsoft
19% in Jan 2017 on SAP.
Citrix
Symantec
Adobe
Red Hat
CRM
VMware
Market Trend: Two thirds of companies surveyed are currently
planning or discussing the adoption of S/4 HANA (Courtesy: PAC
research)
The S/4 HANA Migration
Transitioning to S/4 HANA for existing SAP customers
What from existing solution can be moved into the S/4HANA?
e.g. On‐Premise ERP to the S/4HANA Cloud Edition (1611 / 1717 / …)
Following are the tiers/areas that are impacted straightaway!
• GUI (Graphical User Interface)
• Business Functionality: SAP standard (configured) and customized
• Database & Table Design
• Interfaces
A lot can be moved into the S/4 HANA!
S/4 HANA Migration Impact!
Fiori User Interface
Interface
User
User Interface Change User Interface

Obsolete User Interface
Enhanced Modifications
Modifications
Functionality
Custom Modification
New Standard Functionality
Change
Optimized Standard Functionality
Standard Functionality
Obsolete Standard Functionality
Integration
API
Integration Change
Excluded API’s
Compatibility Views
DB
Classic Data Model Change
Simplified Data Model
E.g. On Premise SAP ERP 6.x / CRM / SCM / … E.g. Cloud S/4HANA (1611 / 1710 / ..)
Database
Compatibility Views
DB
Classic Data Model Change
Simplified Data Model
Two big changes!
• Only on SAP HANA DB:
• Migrate to HANA DB, as soon as possible. Weigh the impact from DB size!
• What is the ‘quality’ of your existing data? It’ll be accessed ‘Real Time’.
• Recommended to use ‘Information Steward’.
• Data Model / Table design changes removing redundancies
Interfaces
Integration
API
Integration Change
Excluded API’s
• Most of the standard integration touch points are supported and are mentioned in the
simplification list.
• Dependencies from the Middleware in‐use, plus SAP XI / PI / PO.
• Use of PO is strongly recommended! Have to migrate from XI / PI to PO.
• Who can perform this migration?
Following are the impact considerations:
• Obsolete remote function calls
• Changes at the Table or Field Level in S/4 HANA (e.g. Material Number length)
Business Functionality: SAP standard (configured) and customized
Data Modelling
User Interface (Cloud version)
Fiori User Interface
Interface
User
User Interface Change User Interface

Obsolete User Interface
Paradigm shift!
• Fiori app access is based on Roles to the ‘Fiori LaunchPad’!
• Users need to get used to the new design of interface
• Some functionality also available on WebGUI accessed via LaunchPad
• Check on the obsolete T‐codes,
don’t be shocked!
• Refer the simplification list
from SAP.
Enhanced Modifications
Modifications
Functionality
Custom Modification
New Standard Functionality
Change
Optimized Standard Functionality
Obsolete Standard Functionality
Need to address:
• Which ‘standard or custom’ functionality you’re using is obsolete in S/4 HANA?
• Which ‘standard’ functionality that you’re using is directly available in S/4 HANA?
• Which ‘standard’ functionality that you’re using is optimized in S/4 HANA?
• Which new functionality is useful for you to ‘turn ON’ in S/4 HANA?
• Which existing ‘custom’ functionality is now available in S/4 HANA as ‘standard’?
• Which existing ‘customized’ functionality is not available in S/4 HANA but needs to be available
due to business uniqueness or demand? Refer: “Simplification Item Database”
• Which functionality in S/4 HANA requires to be customized for you?
Streamlined Procure to Pay
Accelerated Plan to Product
Optimized Order to Cash
Enhanced Request to Service
Example of changes:
• Secondary elements are
now G/L accounts.
• Accounting principles are
now at a company code
level.
• If the fiscal year differs,
you will need to use
ledgers to represent
parallel accountings.
Example of changes:
• Only customers with customer/vendor integration in place can move to S/4HANA
• All customers and vendors in your SAP should be first converted into business
partners
• Material ledger is mandatory for classic material valuation.
• Existing customers without ML can activate Material Leger during migration/
Go‐Live as well.  
• For existing customers with active ML but not using transfer prices, migration
program transfers data to the new S/4HANA tables.
Are you ‘fit’ for S/4 HANA?
Introspection
How ‘different’ is your current SAP solution?
Are you able adopt your business innovation
in your current SAP solution?
Is your ‘data’ accessible
anytime from anywhere?
Are your processes too
complicated & customized?
Is your SAP solution rigid or
agile to make it work for you
for future?
Introspection
Which way
would you like
to use your
SAP?
Have you started preparing for the
S/4 HANA ‘business case’?
How would you assess the ‘impact’
for S/4 HANA migration?
What is ‘my’ roadmap for
successful S/4 HANA migration?
Your own Transformation Journey to S/4 HANA!
“Make your SAP landscape fit for S/4 HANA”
Business Case
• Changes from your Innovation initiatives for survival & growth
• Create a system implementable business logic
• Redesign of the business processes & end‐to‐end Process Scenarios
• Critical & Core versus Generic & Outsourceable
Impact assessment for S/4HANA migration
• Which existing functionality is impacted & must be retained?
• Which new features should be implemented (& enhanced, if needed)?
• How to ensure the ‘changes’ are 100% perfectly implemented & tested E2E?
• Is it going to be step upgrades or direct migration?
Roadmap for successful S/4HANA migration
• Do you have ‘phases’ agreed between Business & IT teams?
• Do you have expert team assembled (BAs, Process owners, Core team)?
• De‐risk S/4HANA migration: When can you start the Impact Assessment health check?
S/4 HANA Migration Impact Analysis:
Process
Analysis of Identification
Analysis of Analysis of ‘to be’ of impacted
Current
Requirement Functional Scope critical
Solution
Specifications in target version Business
Standard,
and change e.g. EhP8 / SoH / Processes &
customization,
Plan S4HANA Functionality
interfaces etc.
Proceed to
Create Heat Mapping with Process Library &
plan the Review by Scenarios, used T Codes list,
map detailed
Upgrade or Business & IT report on SQS Library of impacted
impacted areas functionality for target version,
Migration teams
validation criteria, criticality
project analysis
S/4 HANA Migration Impact Assessment
Example: Business Processes Mapping for ECC6 ‐ EhP 7 / EhP 8 Step Upgrade
Human Capital Management
S/4 HANA Migration Impact Assessment
Example: Business Processes Mapping for ECC6 ‐ EhP 7 / EhP 8 Step Upgrade
Material Management => EM Logistic Finance & Controlling => EM Finance Travel & Expense Management

Example: Master Data Management Mapping for ECC6 – S/4HANA Migration
Example: Procurement & Production Planning Mapping for ECC6 – S/4HANA Migration
Procurement Production Planning
Example: Procurement Scenario Mapping for ECC6 – S/4HANA Migration
Example: E2E Scenario Mapping for ECC6 – S/4HANA Migration
Example of Heat Map
Impact
Business Areas Impacted Key Business Processes Assessment
(H/M/L)
Centralized Product Master with extended number range H
MDM Business partner in Customer role H
Business partner in supplier role H
Business partner in employee role H
Self service procurement H
Sourcing &
Procurement Material Valuation ‐ Statistical moving average price M
FIORI based transactions H
Inventory/ Stock
Stock report M
movement
Process Goods Receipt or Goods movement H
Sales & Pricing Data model M
Distribution Global Trade H
Customized Change the customized critical business processes to standard
H
Business Process transaction offered by S/4 HANA
Example: Detailed report on criticality and complexity
Identification of critical
Complexity Analysis of scenarios based on ST03N
Sub business process report and migration impact
SQS Business Process
Library mapping
40
Example: Detailed report on criticality and complexity (continued)
Complexity Analysis Analysis of

Of E2E Business Scenario with Process Documentation
mapped Sub Business Process completeness
SQS Group | SQS SAP HANA Testing Capabilities, Solutions & Services | 41
Why SQS – for S/4HANA impact assessment
15+ years in SAP testing, in 15 countries, 500+ projects and 250+ Enterprise customers
• Proven track record – testing is what do and ‘only’ do! We can’t fail in what we do
Business Process & E2E Scenario based quality assurance approach
Fast methodology to conduct the impact assessments for S/4 HANA
• Use of repository, accelerators and tools (including those provided by SAP)
• Reference of case studies for SAP Upgrade and S/4 HANA Migration Assessments
• No other interests while performing the Impact Assessment!
Get in touch today to find out how we
can help you on your S/4 HANA journey sqs.com
SQS Group Limited Contact:
7–11 Moorgate Mark Bell
London, EC2R 6AF
Mark.Bell@sqs.com
United Kingdom
Phone: +44 20 7448 4620 +44 7580 842 498
Fax: +44 20 7448 4651
info@sqs.com
Thank you for your attention.

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Transforming the World through Quality

5.0 6.0 EHP1 … EHP7 EHP8

Cloud S/4 Hana 1511 1610 1710 …

Hasso Plattner (Chairman & co‐founder of SAP SE)

User Interface Change User Interface

User Interface Change User Interface

Material Management => EM Logistic Finance & Controlling => EM Finance Travel & Expense Management

Complexity Analysis Analysis of

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