FocuS/4 Project Overview - myspv. · PDF fileSAP ERP Systems Architecture at ... Upcoming innovations of SAP and future legal requirements will demand ... planned innovations and future

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FocuS/4 – Project Overview SPV S/4HANA Event, 28th November 2016, Munich

Andreas de la Camp

Restricted © Siemens AG 2016


November 2016Page 2 CF R / GS IT /

Content

3. SAP S/4HANA Finance – Proof of Concept at Siemens: Case for Action, Objectives and Setup

Use Case B – Approach, Conclusion

Use Case A – Approach, Deliverables and Conclusions

1. Siemens Company Profile

2. SAP ERP Systems Architecture at Siemens

4. The Siemens S/4 HANA approach (FocuS/4 Project)

Objectives and functional scope

Approach and timeline



Content











Siemens Company Profile

Fiscal Year 2015 – Key figures

Key figures Siemens Fiscal Year 2015

1 Comparable, excluding currency translation and portfolio effects 2 Continuing and discontinued operations 3 Commonwealth of Independent States

Revenue by industrial business

Power and Gas (PG) 17%Healthcare 17%

Process Industries and Drives (PD) 13%

Digital Factory (DF) 13%

Mobility (MO) 10%

Not included: Financial Services (SFS)

Wind Power and Renewable (WP) 7%

Energy Management (EM) 16%

Building Technologies (BT) 8%

Revenue by RegionAsia, Australia 20%

Americas 29%

Europe, CIS3, Africa, Middle East

(without Germany) 36%

Germany 15%

(Continuing operations; in millions of €

except where otherwise stated) FY 2015 FY 2014 Change in %1

Volume

Orders 82,340 77,657 (1)%

Revenue 75,636 71,227 (1)%

Profitability and capital efficiency

Net income2 7,380 5,507 34%

Return on capital employed (ROCE)2 19.6% 17.2%

Liquidity

Free cash flow2 4,674 5,201

Employees (in thousands) Sep. 30, 2015 Sep. 30, 2014

Total (continuing operations) 348 338

Germany 114 114

Outside Germany 234 224



Siemens Vision 2020

Selected growth fields

Flexible and small gas turbines Digital-twin software

Key sectors in process industries

Image-guided therapy and

molecular diagnostics

Offshore wind power

Distribution grid automation

and softwareUrban and

interurban mobility

Business analytics and data-driven

services, Software, and IT solutions



Content











Siemens

SAP ERP Systems Architecture as of today

EU, AM, APACCU MO PD DF EM PG PS WP BT• 52 SAP ERP systems for all

Siemens Divisions and Regions.

• All ERP systems are running on

SAP HANA (incl. EhP7) since

August 2016.

• All systems deliver data to SAP

BCS Consolidation system via

common structure and format.

• SAP BW Reporting retrieves all

relevant data and documents

via SAP SLT1) technology from

operative ERP systems.

• SAP ERP systems perform the

main business functions for order

processing, production

planning, warehouse,

customer service, project

execution, etc.

Corporate Reporting and Consolidation

SAP Consolidation System on HANA / Corporate Reporting on HANA

Siemens DivisionsCorp. Unit Regions

only schematic view, not complete list of systems

Logistics & Finance

EU1

EU2

US

….

CUP P22 RLP

R2P

AXP

P03 PS5

ENP

R0P

I1P, I2P, I3P

PD2

KSP

RBP

OPP

PS1

PC1

APAC

………

Not in scope:

SAP ERP systems of Siemens Healthcare Division and ERP systems of Dresser Rand company.

Non-ERP systems, e.g. SAP BI, APO, SRM, HCM, others

Siemens has globally approx. 160,000 SAP users

CHN

BRA

…

…

…

1) SLT: SAP Landscape Transformation Replication Server



Content











SAP S/4HANA Finance – Proof of Concept:

Case for action and expected benefits 1)

1. SAP supporting the current ERP Classic G/L delta account solution only until 2025.

Current Siemens ERP applications: functional and process capabilities are often 15-20 years old.

Possibility to combine S/4HANA implementation with a new ERP Systems Architecture and ERP

Roadmap.

2. Standard Migration of one ERP system to NewGL only possible at end of a Fiscal Year.

3. Upcoming innovations of SAP and future legal requirements will demand New GL

and S/4HANA capabilities.

4. SAP S/4HANA promises drastically simplification of processes as well as agility and flexibility(parallel ledgers, document split and posting accuracy, less reconciliation, reduced period-end closing

efforts).

5. Significant potential to reduce Siemens specific Add-on developments.

1) SAP S/4HANA Finance - Proof of Concept for Siemens was initiated and kicked-off in August 2015.



SAP S/4HANA Finance – Proof of Concept:

Objectives

Proof capability ofCentral Finance approach

Reduce process and technical complexity

Migrate from Siemens ERP to S/4HANA Finance

Improve financial processes by using new technologies

Standardization

Finance –Proof of Concept

Evaluate Benefits and Risks

BA

€



Content











Use Case A:

Approach & Project Deliverables

New GL design

S/4HANA Finance design

New GL implementation

S/4HANA Finance implementation

Results of process tests

Evaluation of migration scenarios

Template components list

Benefits & Risks evaluation

Main

Delivera

ble

s U

se C

ase A

1.

2.

3.

4.

5.

6.

7.

8.

SAP S/4HANA – Finance

Migration of one Siemens SAP ERP

with Classic GL to

S/4HANA Finance1) with NewGL

SAP ERP

Classic GL

D22

SAP ERP

New GL

D22

SAP

S/4HANA FIN

New GL

G22

1) S/4HANA Finance: Add-on installed in ERP Business Suite on HANA, ERP 6.0, EhP7, On-Premise Edition, Release 1503, Support Package Stack 1508

New technologies

Siemens-specific enhancements



Use Case A: Conclusions for Siemens

based on SAP S/4HANA Finance Proof of Concept

Data cleansing and process redesign are prerequisites to use new

SAP functionalities

Back to SAP Standard is feasible for Siemens e.g. due to

Delta account solution replaced by full value parallel posting logic

Document split enables postings to the correct profit center at source

New asset accounting functionality implemented

Migration in one step (to NewGL and S/4HANA Finance) independent from

fiscal-year end, possible at month-end

Data of the actual and previous fiscal year can be transferred into the new

SAP S/4HANA data model

End-to-End Siemens business processes run under S/4HANA

Conclusions

Use Case A



Content











Use Case B: Approach Proof Capability of SAP Central Finance

Siemens requirements of Finance

processes for SAP Central Finance

# re-

quire-

ments

Closing 8

Asset Accounting 1

Accounts payable / Accounts receivable 2

Payment 4

Controlling 5

Reconciliation 4

Other accounting activities 2

Reporting 1

Digitalization 1

Interoperability 2

Common requirements 17

total 47

SAP S/4HANA – Central Finance

SAP

ERP

Other

ERP

SAP

ERP

SAP

ERP

SAP

ERP

…

Financial Reporting

Proof capability of SAP Central Finance

in a theoretical feasibility evaluation

One direction SLT1) interface

1) SLT: SAP Landscape Transformation Replication Server



Use Case B: Conclusions for Siemens

based on SAP S/4HANA Finance Proof of Concept

Alternative 4 is the most efficient for Siemens

(most benefits, least process complexity and disadvantages)

Fully integrated

S/4HANA system

Integrated S/4HANA System

(Finance & Logistics)

Alternative 4“Functional Scope” of the

central system extended with

global and Invest. Logistics

Central System + Global Overhead

& Invest. Logistics

(purchasing, goods movement, invoicing), incl. logistics processes

Alternative 3Central Finance with

complete relevant Finance

Complete Finance (integrated planned and

actuals) + CO objects

Period-end Closing and Reporting(excl. Production controlling & chosen controlling processes)

Alternative 2Central Finance with

Asset Accounting

Financial Statements (IFRS + Local)

+ Cost Center

(Interface HR)

Alternative 1Reporting with

Central Finance

Global Financial Reporting

(Interface to Business Consolidation system)Universal Journal only

Line-item level re-postings of financial documents

Source

systems

Asset Accounting *) and

Cost Center Accounting*) depends on chosen asset processes

+

Subledgers AP/AR/Bank **)

& CO (incl. PS / Acct.-based CO-PA)+**) AP/AR/Bank not yet available; on SAP Roadmap

Global Overhead and

Invest Logistics+

Global Production Logistics+

Target

This slide was elaborated together with SAP SE.

Picture shows existing functionality as of 05/16,

planned innovations and future directions for Central

Finance.



Content











Content











Proof of Concept project to evaluate S/4HANA Finance for Siemens

proved benefits and stability for Siemens

Product is stable to finish

a proof of concept in time

and in budget

Benchmarking with other

multinational companies

showed similar projects

Benefits for Siemens have

been identified

GS IT and CF R agreed to build a

New Siemens S/4HANA Finance standard solution based on Central Finance



Maximize use of S/4HANA Finance standard technology by definition of

Finance harmonized end-to-end process standards based on new

technology

standards for Finance related master data models and management

Leverage benefits and use of simplified S/4HANA data model by

simplification of functions and processes flows (“zero waste”)

reduction of Siemens-custom development to a required minimum

increase of usability and leverage usage across any device

Make use of all S4HANA acceleration opportunities, e.g. by

elimination of periodic reconciliation steps (soft / fast close)

using simulations of business options and predictive analysis

further increasing automation (e.g. Robotics)

Create maximum transparency by

central view on all finance information

central ownership for Finance related processes and data

integrated planning and simulation

Standardization

Acceleration

Transparency

Simplification

FocuS/4

Objectives



Asset

Accounting

G/L

Accounting

Accounts

Receivable(incl. Cash & Bank)

Accounts

Payable (incl. Inter-Company

Clearing)

Master Data

(SAP MDG)

Integrated

Business

Planning for

Finance

Cash

Management 1) Purchasing 2) Non operating

services

Workflow,

Automation &

Tools

Access Control

& Fraud

(SAP GRC)

User

Experience

(SAP Fiori)

System

Integration

(SAP AIF)

Closing &

ReportingControlling

Finance Functions

as of today

New Functionalities

& Further Functions

New cross

Functionalities

Finance Functions Further Functions

New

Consolidation

(ESPRIT)

Risk

Management

(RIC-tools 3))

Bank

Communicator

(finavigate)

Potential Future

Scope Extension

1) SAP module for liquidity forecasting2) includes interface to SAP SRM Application3) Current Risk Mgmt. & Internal Controls solutions

used within Siemens

SAP MDG: Master Data Governance

SAP AIF: Application Interface Framework

SAP GRC: Governance, Risk and Compliance

FocuS/4

Agreed functional scope - our compass for the future



Content











Shadow Finance

FocuS/4

Assumption: Integration of de-central ERP Systems with Central Finance

New Siemens S/4HANA Central Finance SystemG/L Accounting, Asset Accounting, Acc. Payable, Acc. Receivable, Closing & Reporting (IFRS & local GAAP), Controlling

Master Data, Integrated Business Planning for Finance, Cash Management

Procurement

Purchase order, goods receipt,

invoice verification

De-central ERP Systems (Operating Business)

Real time replication

on transaction level

of FI and CO postings (actuals)

with mapping in new data model

with relation to source documents

as audit relevant posting

ProductionGoods movements, plan calculation, stock valuation,

confirmations, overhead, variances, settlement, WIP/ POC,

revenue recognition, production, project and service

controlling

Sales

Sales order, delivery, invoice



FocuS/4

Agreed five step approach

1) Proposal: Company Code 7092 (CUP System) / Company Codes 7711 + 7411 (KSP, R71 System)2) New Central Finance adoption / connection

New Siemens S/4HANA Finance Standard

Central Finance Solution

Define

standardized

functional scope

for

“New Finance

Standard”

1

Conceptual

blueprint for

Finance Solution

& Central

Finance Setup

based on three

Pilots1) and

proposed go-live

approach

2

Roadmap

planning

and

business

case for

global roll-outs2)

4

Budget

planning

and global

program

initiation

Ongoing maintenance for current ERP systems, adoption of new legal requirements (e.g. IFRS)

Parallel Streams:

S/4HANA “New Finance Standard”

Migrate productive

Pilot (Finance “only”)

3

Establish Central Finance and

connect Logistics pilots

3c

Decision

on global

roll-out

5

Build new Central Finance

System (Greenfield)

3a

3b

Agile

development



New Siemens S/4HANA Central Finance System

Other

ERPs

Other

ERPs

FocuS/4

Schematic overview of pilot scenario

CUP - System

Logistics

Finance

Other AREs 1)

Pilot ARE 7092

Greenfield

System

until 12/2017

Finance Pilot

ARE 7092

Logistics Pilots

2 AREs

KSP - System

R71 -System

Logistics

Finance

Other AREs

Pilot AREs

7711, 7411

until 04/2018 until 10/2018

Other

ERPs

Roadmap

Mig

rate

Co

nn

ec

tvia

SLT

2)

………

3a 3b 3c

Co

nn

ect

via

SLT

4

1) ARE: German “Abrechnungseinheit”,

Siemens structure reflected by SAP Company Code2) SLT: SAP Landscape Transformation Replication Server



FocuS/4

Timeline (initial planning)

FY 2016 FY 2017 FY 2018 FY 2019

Phase \ Calendar Month 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1

Functional

Scope

Conceptual

Blueprint

Build Central

Finance System

Migrate Pilot

Finance

Connect

Central Finance

Roadmap &

Business Case

Design (incl. show & tell) – 9M

Analyze – 5M

Build (with prototyping) –9M

Define

1

2

3a

3c

4

Connect & Process Split – 9M Stabilize1)

1) FY end required due to process split

3bMigrate –

4MStabilize –

3M

today



Knowledge is a process of piling up facts,

wisdom lies in their simplification.

Martin H. Fischer,

German-born American physician and author, 1879 – 1962

As quoted in Encore, A Continuing Anthology, March 1945

Thank you…

Documents

FocuS/4 Project Overview - myspv. · PDF fileSAP ERP Systems Architecture at ... Upcoming innovations of SAP and future legal requirements will demand ... planned innovations and future