Digital Transformation of Energy and Natural Resources ...sap.lianacms.com/media/events/library/assets/enr-forum/digital... · Digital Transformation of Energy and Natural Resources

Digital Transformation of Energy and Natural

Resources Enterprises with SAP S/4HANA

Don Mahoney

Vice President and Global Head of Chemicals

SAP Industry Cloud May 31st, 2015

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2Customer

Legal disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the

permission of SAP. This presentation is not subject to your license agreement or any other service or subscription

agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related

presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation

and SAP's strategy and possible future developments, products and or platforms directions and functionality are all

subject to change and may be changed by SAP at any time for any reason without notice. The information in this

document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document

is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties

of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes

and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document,

except if such damages were caused by SAP´s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ

materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,

which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

3


Co-CEOs

announced

Acquisition

announced

Sybase Unwired

Plaform 2.0

Gateway

Acquisition

announced

Acquisition

announced

Acquisition

announced

HANA

launched

Acquisition

announced

Acquisition

announced Acquisition

announced

Acquisition

announced

Suite on HANA

launched

SAP HANA

Enterprise Cloud

launched

Lumira

launched

SAP Simple

Finance launched

HANA Cloud

Platform launched

Acquisition

announced

Fiori launched

Transformation Journey

2010 2011 2012 2013 2014


Complexity is costly … and Legacy Applications can’t cope with it!

Complex business processesLarge organizations can spend between

40% and 80% of their time on non-value-

added activities

(BCG, Complexity Report)

Complex technology73% percent of executives said the

complexity of data is the largest IT

challenge

(Forrester, 2013 report)

Complex decision making“Large global organizations have

created so much complexity that

businesses often struggle to bring good

ideas to the marketplace profitably.”

(McKinsey, 2014)

Scattered information Technology limitationBatch orientation

10.2% or $237B*of profits lost by top 200 global companies due to hidden costs of complexity

*Global Simplicity Index, 2013


Complexity in the Energy & Resources Industries

Time consuming consolidation of financial

data, due to separation of legal and

management accounting and reporting based

on aggregates Long closing times!

No real-time overview of production assets and

maintenance requirements Lower asset

availability, uptime, and performance!

Low-performing simulations and unintuitive user

interfaces Lower employee productivity!

Inconsistent and outdated data due to batch processing

and duplication Delayed decision making!

Data duplication across systems, such as from OLTP to

OLAP High percentage of data inconsistencies!

Database inflation due to predefined aggregates with

numerous tables Lower IT productivity!

Scattered supply and demand information

Excess inventory and stock-outs!

Fragmented innovation processes without pooled

product and project data Longer time to

market!

IT Complexity

Business Complexity

User Experience Complexity

Continuously changing regulations and

product and operational risks Incident

rates and challenge to right-to-operate!


SAP Simple Finance powered by SAP HANA

SAP Business Suite powered by SAP HANA

SAP HANA

SAP Business Warehouse powered by SAP HANA

2011 20132012 2014

real-time analysis

real-time reporting

real-time business

olap & oltp together

SAP HANA Enterprise

Cloud for Suite on HANA

2015 >

in-memory platform

instant financial insight

no aggregates

single source of truth

simplified data model

new user experience

advanced processing

choice of deployment

multi-tenancy

SAP HANA, the great simplifier of enterprise software


Consumer grade user experience

Real-time business processes and analytics

SAP HANA real-time platform

The path to a hybrid business platform

Real-time business processes and analytics

Connected to business networks

Choice and flexibility of deployment

Open for customer and partner extensions

SAP Business

Suite

SAP CloudSolutions

Cloud for

CustomerFieldglass

Ariba

SuccessFactors

Concur

Finance

Customer

Transportation

Warehouse

Industry

Solutions

Product Lifecycle

Procurement

Supply Chain

Analytics

People

Integrate

Simplify

Fin

ance

Supply

Chain

Manufa

ctu

ring

Pro

duct L

ifecycle

Custo

mer

People

Manufacturing

Industry

Pro

cesses

Pro

cure

ment

+26 Industry

Maps

every industry every region every size

every line of business every deployment model


SAP S/4HANA, the next generation business suite

Cloud

edition

On-premise

edition

SAP S/4HANA applications and extensions

instant insight-driven applications for all lines of business and industries

SAP HANA platform

in-memory platform for all data

SAP Fiori UX

role-based user experience for all devices

Ariba Concur Fieldglass hybris Software SuccessFactors SAP JAM

Native integration for hybrid scenarios

People

Devices

Big Data

Internet

of Things

Business

networks

Social

networks


SAP S/4 HANA simplifies business for ENR companies

Product innovation

and integrity

Manufacturing and

asset utilization

Supply chain

management

Sales, marketing,

and service

Pooled product and

project data accessible in

real time

Key performance

indicators, material

shortages, and stock levels

available in real time in a

single, consolidated cockpit

Ad-hoc visibility of prices,

margins, and production

capacity to sales

personnel

Maintenance orders

automatically generated

from real-time view of

production and assets

17%Faster time to market1

32%Lower unplanned

downtime1

36%Fewer stock-outs1

12%More field sales achieving

quota1

ProcurementSimple, fast, and error-free invoice processing through

integration with the Ariba Network 98%Enablement of touchless

invoices and payments2

FinanceOnly one logical document across FICO, reporting based

on line items, not on predefined aggregates >65% Faster closing times3

HRReal-time insight into current and future staffing needs

through native integration with SuccessFactors and

Fieldglass solutions 22% Lower employee turnover1

1. SAP Benchmarking DB, 2.,Ariba Benchmarking DB, 3. SAP Reference DB: Results of a validation project by Zurich Ariba and SuccessFactors are SAP companies.


SAP S/4 HANA simplifies user experience for ENR

Contextual

informationHigh user acceptance Zero data latency

Role-based, harmonizedUI technologies

SAP Smart Business

cockpits with key

information on one screen

and easy-to-use

navigation for decision

support

Real real-time: decisions

made on massive

amounts of live data at

the most granular level

New applications based

on SAP S/4HANA

designed with SAP Fiori

UX to provide a role-

based, mobile-first,

consistent experience

across lines of business

SAP Fiori user experience

(UX) supporting modern

design principles for

insight to action, decision

support, and simulation

20%Higher revenue per

employee

SAP Benchmarking DB

147%Higher annual revenue

growth and

30%Improvement in

employee and partner

responsiveness and

decision making

The Greatship Group

SAP Reference DB

40%Improved user productivity

SAP Reference DB

11%Higher operating income on

average

SAP Benchmarking DB

https://dam.sap.com/mac/download/asset/master.htm?code=d52d794daa9fba55daf58e8c55de6dfc691107c6


SAP S/4 HANA simplifies IT for ENR companies

Data consolidationReduced data

footprint

Elimination of data

aggregates

Simplified system

landscape

Complexity is eliminated

by compressing the

technology stack

combining the

transactional and

analytical layers – for data

analysis in real time on a

single source of truth.

The need for predefined

aggregates is eliminated;

data is aggregated on the

fly from the lowest level of

detail, which saves IT a

lot of time spent on

maintenance and gives

business users greater

flexibility.

Merging of OLAP and

OLTP systems provides

the ability to chose

deployment model based

on flexibility or functional

needs (on-premise, cloud,

hybrid).

Data footprint is

significantly reduced

through high data

compression rate and

elimination of redundant

and hence obsolete data

tables – for better

scalability and high

availability of systems and

networks.

4-10X Times faster DSO activation

SAP Reference DB

60%-250%Reduction in database size

and data compression

SAP Reference DB

10x-100xFaster reportingSAP Reference DB

Fewer daysfor month-end close and for

financial consolidation

process

SAP Reference DB


S/4HANAThe Next Generation Business Suite

On-Premise

SoH

S/4HANA Cloud

editions

NW 7.40 NW 7.60

SAP HANA SAP HANA

S/4 Products

S/4HANA core (ERP)

no aggregates, natively HANA, 100% Fiori,

designed for the Cloud

SuccessfactorsHybrisC4C

• No modifications

• SAP managed

• Quarterly innovations

• HCP for extensions

Concur

Customer /

Partner

extensions

HCP / HCI

Business Networks

Ariba

SAP Business Suite

On-Premise

NW 7.40

AnyDB / HANA

sXYZ

sLOG

sFIN


SAP S/4HANA offers choice of deployment

DISCLAIMER: This map represents SAP’s current plan, but subject to change without any prior notification. Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines

Continuous innovations

Yearly innovation cycle

Quarterly innovation cycle

SAP S/4HANA

Cloud Edition

(next shipment)

SAP S/4HANA

Cloud EditionSAP S/4HANA

On-Premise Edition

SAP S/4HANA

On-Premise and Cloud Edition

(next shipment)

Available

TodayPlanned

Innovations

Future

Solution

For more details see SAP S/4HANA roadmap on SAP Service Marketplace

https://websmp201.sap-ag.de/~form/handler?_APP=00200682500000002672&_EVENT=DISPLAY&_SCENARIO=01100035870000000122&_HIER_KEY=501100035870000019823&_HIER_KEY=601100035870000248628&_HIER_KEY=601100035870000250174&


SAP S/4HANA - On Premise How to get there

SAP Suite on HANA

today 20252016

Deg

ree o

f sim

pli

ficati

on

• Most modern & performant platform

• No more batch processes

• Real-time insight to action

• Streamlined business process

• Dramatically improved UX

• Fastest growing product ever

• Deliver on the promise of the Perfect

Enterprise.

• Real real-time. Integrated. Open.

Networked. Simple UX.

• New license product, but no new technical

product (non-disruptive)

• Runs on SAP HANA

• Default offering for new customers

20142013 …

+

10

800

>2000 customers

Simple FinanceSimple

Logistics/ERP

SAP Business Suite 4

on HANA

SAP Suite on AnyDB• Mainstream maintenance until 2025

• Customer Connect


SAP S/4HANA, cloud edition

Drive the digital transformation with the simplicity of the cloud

EFFECTIVE GOVERNANCE

FLEXIBLE DEPLOYMENT

FAST INNOVATIONS

DYNAMIC EXTENSIBILITY GUIDED CONFIGURATION

NATIVE INTEGRATION

cloud and hybrid

quarterly innovation cycle

extensions via SAP HANA Cloud

Platform

fully managed by SAP

integration with SuccessFactors

Employee Central, Ariba

Network, SAP hybris Marketing,

Fieldglass, SAP JAM

Ready-to-run SAP Best

Practices business processes

- SAP S/4HANA, cloud marketing edition

- SAP S/4HANA, cloud project services edition

- SAP S/4HANA, cloud enterprise edition

Cloud

edition


THE ROAD TO S/4HANA


SAP Suite on

HANA

1

SAP S/4HANA

with Simple

Finance

2

SAP CloudSolutions

Cloud for

CustomerFieldglass

Ariba

SuccessFactors

Build Foundation Simplify Innovate and Optimize

SAP S/4HANA

on-premises

SAP HANA Cloud

Platform

SAP

S/4HANA

managed cloud

SAP

S/4HANA

public cloud

3


SAP Suite on

HANA

1

SAP S/4HANA

with Simple

Finance

2

SAP CloudSolutions

Cloud for

CustomerFieldglass

Ariba

SuccessFactors


SAP S/4HANA

on-premises

SAP HANA Cloud

Platform

SAP

S/4HANA

managed cloud

SAP

S/4HANA

public cloud

3

• More business agility

• More user engagement

• Simpler IT landscape

• Reduced data footprint

• 2170 customers

• 2448 use cases

• 352 live customers

Numbers as of May 11th, 2015


SAP Suite on

HANA

1

SAP S/4HANA

with Simple

Finance

2


SAP S/4HANA

on-premises

SAP HANA Cloud

Platform

SAP

S/4HANA

managed cloud

SAP

S/4HANA

public cloud

3


SAP Suite on

HANA

1

SAP S/4HANA

with Simple

Finance

2


SAP S/4HANA

on-premises

SAP HANA Cloud

Platform

SAP

S/4HANA

managed cloud

SAP

S/4HANA

public cloud

3

• 391 customers

• 7 live customers

Numbers as of May 11th 2015

• Better forecasting

• Less reconciliation

• Faster close


SAP Suite on

HANA

1

SAP S/4HANA

with Simple

Finance

2

SAP CloudSolutions

Cloud for

CustomerFieldglass

Ariba

SuccessFactors


SAP S/4HANA

on-premises

SAP HANA Cloud

Platform

SAP

S/4HANA

managed cloud

SAP

S/4HANA

public cloud

3

Concur


SAP Suite on

HANA

1

SAP S/4HANA

with Simple

Finance

2

SAP CloudSolutions

Cloud for

CustomerFieldglass

Ariba

SuccessFactors


SAP S/4HANA

on-premises

SAP HANA Cloud

Platform

SAP

S/4HANA

cloud

3

Concur


SAP Suite on

HANA

1

SAP S/4HANA

with Simple

Finance

2

SAP CloudSolutions

Cloud for

CustomerFieldglass

Ariba

SuccessFactors


3

Concur

SAP S/4HANA

on-premises

SAP HANA Cloud

Platform

SAP

S/4HANA

cloud


SAP S/4HANA Roadmap for ChemicalsOn Premise Edition

Q3/2013

Complete

SAP Business

Suite

on SAP HANA

AND Any DB

Q3/2014

SAP Simple

Finance 1.0

exclusively on

SAP HANA

Q1/2015

First

SAP S/4HANA

On-Premise Edition

exclusively on

SAP HANA

(Business Suite + Simple

Finance)

Q1/2016

ERP EhP 8

Continuous Innovation

on SAP HANA

AND

Any DB

Maintenance and


commitment until 2025

Infinity

Codeline

Migration

Future Shipments

ERP EhPx/SPx


on SAP HANA

AND

Any DB

Q4/2015

SAP Simple

Logistics

EHS

PLM

Future Shipments

SAP Hybris

Marketing

Simple Project

Business

Q2/2015

SAP Simple

Finance

2.0

sInfinity

Codeline

Future Shipments


Product Roadmap - SAP S/4HANA for Oil & Gas

SAP Simple Finance

1.0 w/o JVA

• Further core simplifications

• Further optimizations & simplifications for Oil & Gas solutions

• SAP Simple Finance 1503

• With JVA enablement (wave one)

• PRA optimizations

• TSW optimizations (wave one)

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice.This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for aparticular purpose, or non-infringement

© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Suite on HANA incl. Oil & Gas

solutions

1

Build Foundation

2

Simplify Innovate

and Optimize

3

• SAP Simple Logistics with Oil & Gas solutions (upstream & downstream)

RECENT PLANNED FUTURE


• SAP Simple Finance

• SAP Simple Project Business

• SAP HybrisMarketing

• First IS-U simplifications

• SAP Simple Finance released for Utilities incl. IS-U

• SAP Simple Finance 1503

• Released for Utilities incl. IS-U

• SAP Simple Finance

• SAP Simple Logistics with IS-U

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice.This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for aparticular purpose, or non-infringement


• Suite on HANA incl. IS-U

• Further core simplifications

• Further IS-U simplifications

Q4/2013 2014 Q1/2015 Q2/2015 Q4/2015 2016+

Product Roadmap - SAP S/4HANA for Utilities

1

Build Foundation

2

Simplify Innovate

and Optimize

3


SHELL accelerates transition into the Cloud with SAP

HANA

http://youtu.be/PW7DUkut_aE





SAP

Suite on

HANA

1

SAP S/4HANA

with Simple

Finance

2

SAP CloudSolutions

Cloud for

CustomerFieldglass

Ariba

SuccessFactors


3

Customer Path to Success with S/4HANA

Concur

SAP S/4HANA

on-premises

SAP HANA Cloud

Platform

SAP

S/4HANA

cloud


Thank you

Contact information:

Don Mahoney, Vice President and Global Head of Chemicals

SAP SE

[email protected]

Documents

Digital Transformation of Energy and Natural Resources ...sap.lianacms.com/media/events/library/assets/enr-forum/digital... · Digital Transformation of Energy and Natural Resources