SAP Runs SAP - Financials

Bernhard Luecke
November 2014
Agenda

Simple Financials @ SAP our Journey

Business Benefits

Your Journey to Simple Financials

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 2

Simple Financials @ 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 SAPs transformation

Thought leader for IT-driven innovation and best practices

Always SAPs first ramp-up customer; SAP Runs SAP
Co-Innovation for in-Memory Technology and Mobile Business Solutions

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 4

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,
Processes 395.000 vendors, one controlling area and one operating concern
Quote to close
Order management
Financials Applications
Invoicing General Ledger, Financials, Real-Estate, Treasury ,
Travel & expense Consolidation, Controlling, Planning & Consolidation, Reporting
management
Record-to-close Data Volume FI (Fiscal year 2013) Data Volume CO (Fiscal year 2013)
Purchasing ~ 6,3 Mio Document Header ~ 90 Mio CO Line Items
~ 25 Mio FI Line Items ~ 5,8 Mio CO Totals
Controlling
~ 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

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 5

SAP Runs SAP
First and best reference customer
Full Cloud HCM
transition in process

Public Cloud Cloud for People Cloud for Customer ARIBA Cloud for T&E
No capital investment
Cost effective 67,000+ users on Integrated with Top 3,300 Supplier Main markets live,
SLAs, predictable, SuccessMap on-premise CRM via Business Network Rollout in process
reliable
Pay-as-you-go SAP JAM Corporate-wide standard

Private Cloud BW on HANA CRM on HANA ERP on HANA

Dedicated environment with SAP Simple Finance
Control of data location
4,500+ users 15,000+ users 67,000+ users
Security and control
Elastic and flexible SAPs Financial Reporting All Marketing, Sales, Services, ERP for all core Financial
Finance etc. processes
Implementation in 5 months
Implementation in 2.5 months Implementation in 5 months

Powered by SAP HANA Enterprise Cloud (HEC)

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 6

SAPs Internal Platform Adoption Roadmap

SAP Business Suite

SAP Business Suite powered
SAP HANA as Simple Finance
by SAP HANA, SAP NetWeaver BW
side-by-side scenario (April 2014)
(2013)
(2012)

Fin Add-
On (*)

SAP SAP
SAP BW SAP ERP SAP ERP
ERP CRM

Any DB SAP HANA SAP HANA SAP HANA SAP HANA SAP HANA

Real time Sales pipeline reporting Business Planning and
Consolidation application integrated
Profitability analysis and Profit center
to SAP NetWeaver BW
accounting reporting real time
Receivables Manager Change of currency evaluation for
constant currency calculation to
document currency
Usage of BW Workspaces
SAP Fraud Management
ERP & CRM on HANA Integration of legal & internal
management views on line item level
Environmental Resource
Management No more aggregates / indices in FI &
CO
Working Capital Management
Fiori
Invoice and Goods Receipt
Reconciliation
Receivables Manager & Financial
Fact Sheet
Type Ahead Search / Fuzzy Search

(*) Financials Add-On for SAP Business Suite powered by SAP HANA
2014 SAP SE or an SAP affiliate company. All rights reserved. Public 7
SAPs Internal Platform Adoption Roadmap

SAP Business Suite

SAP Business Suite powered
SAP HANA as Simple Finance
by SAP HANA, SAP NetWeaver BW
side-by-side scenario (April 2014)
(2013)
(2012)

Fin Add-
On (*)

SAP SAP
SAP BW SAP ERP SAP ERP
ERP CRM

Any DB SAP HANA SAP HANA SAP HANA SAP HANA SAP HANA

Real time Sales pipeline reporting Business Planning and
Consolidation application integrated
Profitability analysis and Profit center
to SAP NetWeaver BW
accounting reporting real time
Receivables Manager Change of currency evaluation for
constant currency calculation to
document currency
Usage of BW Workspaces
SAP Fraud Management
2014 SAP SE or an SAP affiliate company. All rights reserved.
ERP & CRM on HANA Integration of legal & internal
management views on line item level
Cash and Liquidity Management
No more aggregates / indices in FI &
Environmental Resource
CO
Management
Fiori
Working Capital Management
Invoice and Goods Receipt
Reconciliation
Receivables Manager & Financial
Fact Sheet
Type Ahead Search / Fuzzy Search
(*) Financials Add-On for SAP Business Suite powered by SAP HANA
Public 8
SAPs Internal ERP on HANA: Key Implementation Highlights

SAP ERP on HANA in less than 5 months Go Live August 21st, 2013

Business Highlights Technical Highlights

First global Go Live of SAP ERP Significantly faster database request

on HANA time of single processes
67.000 ERP user worldwide Data volume reduced from 7.1 TB to
3.7TB, down to 1.8 TB in HANA
Implementation in 5 months
More than 3.000 unused custom
Enables effective and close code objects retired
collaboration between all business
areas HANA import runtime reduced by
~40 hours

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 9

SAPs Internal Platform Adoption Roadmap

SAP Business Suite

SAP Business Suite powered
SAP HANA as Simple Finance
by SAP HANA, SAP NetWeaver BW
side-by-side scenario (April 2014)
(2013)
(2012)

Fin Add-
On (*)

SAP SAP
SAP BW SAP ERP SAP ERP
ERP CRM

Any DB SAP HANA SAP HANA SAP HANA SAP HANA SAP HANA

Real time Sales pipeline reporting Business Planning and
Consolidation application integrated
Profitability analysis and Profit center
to SAP NetWeaver BW
accounting reporting real time
Receivables Manager Change of currency evaluation for
constant currency calculation to
document currency
Usage of BW Workspaces
SAP Fraud Management
2014 SAP SE or an SAP affiliate company. All rights reserved.
ERP & CRM on HANA Integration of legal & internal
management views on line item level
Cash and Liquidity Management
No more aggregates / indices in FI &
Environmental Resource
CO
Management
Fiori
Working Capital Management
Invoice and Goods Receipt
Reconciliation
Receivables Manager & Financial
Fact Sheet
Type Ahead Search / Fuzzy Search
(*) Financials Add-On for SAP Business Suite powered by SAP HANA
Public 10
 SAPs ERP journey @ a glance Simple Finance as driver for
excellence
2013
Move to HANA in 5 month

Main Technical Value Main Business 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)
Fast close enablement - 28% of
processing time removed. New quality
through real time analysis &
continuous intercompany
reconciliation.

Significant less storage space on Simplified Receivables

disk needed in comparison to
previous database system
New monitoring and analysis
features with HANA studio
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.

April August February April

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 11
 Summary: SAPs ERP journey @ a glance Simple Finance as
driver for excellence
2013 2014
Move to HANA in 5 month Move to New GL & Simple Finance in 2 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.
Main Technical Value
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

April August February April

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 12
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

Yesterday in the life of a Controller Today based on HANA

> 26 h <4h

Expected iteration (at least 4 times)

Profitability Analysis reduced from 26 hours to less than 4 hours even with more detail level
CO-PA Closing TWO days earlier!
2014 SAP SE or an SAP affiliate company. All rights reserved. Public 14
 2014 SAP SE or an SAP affiliate company. All rights reserved. Public 15
Business Value
Receivables management

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

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 16

Business Value
closing process event triggered automation

period end
General Before
ledger
close Monthly closing done for 173+ operative entities & branches with
batch batch an average of 100+ activities to perform per closing entity leads to
processing processing
special significant transaction volume at month end and time intensive
ledger posting cycles for mass data processes (e.g. maintenance
close
spreading, order settlements, deferrals, accruals, assessments)
Significant effort for internal (non legal) booking to reflect special KPI
ledger cases
consoli- aggregation Little transparency into local closing activities and their
reporting
dation (BW)
dependencies due to scheduled batch processes. Elimination
potential of
22% of as is
enhanced with Simple Finance on HANA closing efforts
ongoing Access to real time data and improved performance enable the re- (business
transactions design of mass data processes at month-end to be replaced with case)
event triggered execution e.g. :
General
ledger Event triggered accruals (e.g. revenue recognition & software
close deferral automation)
Software posting will be the event for maintenance invoicing and
consoli- period
reporting accrual posting
dation end
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.
2014 SAP SE or an SAP affiliate company. All rights reserved. Public 17
Business Value
organizational change - reflection of organizational changes

Before
Analyzing the impact of upcoming organizational changes is very
manual as reporting layers usually dont provide the necessary
Develop Data Impact
level of detail and required analysis dimensions.
ToBe model preparation analysis
Extraction and preparation of relevant data from source systems
slows down reaction time and reduces focus on modeling and
Finalization of Update
analysis.
ToBe model transactions
Once the new organization model is finalized, batch processes KPI
udpated need to be prepared to update transactional data.
reporting
In parallel, the reporting environment needs to be adjusted to
reflect the new aggregation logic. Time to
implement
org changes
with Simple Finance on HANA 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)
Develop Impact Finalization of Master data can be flexibly enhanced with additional steering
ToBe model analysis ToBe model 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

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 18

Business Value
financial insights end-2-end analytical capabilities
Before
Today, legal accounting is separate from Management accounting (based on
profit center and Profit center hierarchies)
Legal Mgmt
accounting accounting The two views can not be easily combined (e.g. Accounts Receivable does
not provide Information about Profit Center)
aggregation
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 KPI
Operative Segment
Reporting available on company code and LoB only, but cannot be broken down to a
Mgmt
Reporting specific area of responsibility (Profit Center).

Optimizing Cash
and saving
costs Margin
with Simple Finance on HANA increase of
Data structures are harmonized and integrated to form one logical
Legal Mgmt 1 ppt
accounting accounting document across FICO (Accounts Receivable are combined with Profit
Center Information)
Reporting is based on line items (no aggregates), therefore, new reporting
Operative Segment
Mgmt Reporting requirements can be easily implemented based on new FICO joins/views
Reporting
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.)
2014 SAP SE or an SAP affiliate company. All rights reserved. Public 19
SAP Simple Finance @ SAP
Major values realized

Account Receivables Books Closing Intercompany reconciliation

Receivables Management Fast Close Enablement Real-Time capabilities

28%
Improvement on Reduction in
time to
70%
Days sales processing time
10% outstanding process
reduction
40% posting corrections
Reduction in G/L reconciliation
issues

Simple receivables
management through
integration of finance and
sales functions
Shifted focus from data
Intercompany reconciliation
preparation to analysis and
moved to a real-time process
interpretation

SAP HANA platform

No aggregates
Increased performance

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 20

SAP runs SAP in Finance & Controlling
Benefits and KPIs
Financial
Close
86% Real- 91 % 17%
time
faster faster faster

On SAP Automatic Software and

HANA Real-time Maintenance Maintenance
analytics Revenue Accruals Billing

67,000+ 420 Revenue &

74 % 42%
Users faster faster
Hours less Profit and Loss
processing time Reporting,
at quarter end Intercompany Asset Automatic Cost
close reconciliation Depreciation Accrual Postings

173+ 1,300+ Search 8 100+

day
Closing activities
Operative Colleagues Type Ahead Closing, every
entities and involved in Search / Fuzzy including group month/entity (in
branches closing activities Search consolidation average)
2014 SAP SE or an SAP affiliate company. All rights reserved. Public 21
System enablement and transformation
Our Simple Finance Journey in 2014

November 2014
New functionality
First Dashboard available for easy to access Insights
April 2014
Simple Finance Foundation Cash Management functionality trough FIORI Apps (transact./
analytical)
Leverage Simple Finance to improve
performance First Optimization of Processes with New GL & Simple Finance Funct.

Significant reduction of Data memory Further improve transparency due to integrated FI/CO View
footprint Further Memory Footprint reduction (Aging & Housekeeping)
Further Enjoyable Finance transactions wi/FIORI transactional Apps

October 2014 2015+ beyond

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
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

HANA Enterprise Search New business insights with forward looking close
Smart landscape

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 22

What is your journey to
Simple Finance?
What is SAP Simple Finance?

SIMPLE FINANCE IN A NUTSHELL

SAP Simple Finance is a non-disruptive evolution of SAPs 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.
Easily consumable as a
Transformative business value
from real-time analytics
enabled by HANA
+ New consumer-grade user
experience for all devices
provided by BI and Fiori
+ managed service from the HANA
Enterprise Cloud
(or continued on-premise)

Flexible on-the-fly reporting enabling Personalized, responsive and simple Easy and flexible adoption of innovation based
interactive analysis and simulation of complex consumption of analytics, dashboards and on simple solution architecture with complete
business situations. reports across devices. choice of deployment.

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 24

SAP Simple Finance
Scope and Value

SAP Accounting SAP Cash Management Integrated

powered by SAP HANA powered by SAP HANA Business Planning
Alternative in-memory New product for
New capabilities and enhanced
functionality for ERP customers group cash management
integration for ERP and BPC.

Business Suite on HANA

SAP HANA Platform

Aligned Agile Predictive

Single source of truth Real time processes Dynamic planning and analysis

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 25

SAP Simple Finance
Non Functional Value Proposition

Data are only stored once Only one database table to be

(no totals and indices) updated => fast data throughput
No replicated data => Full Parallelization applied as
volume restricted to a minimum no data dependencies
(table locks)
Data Data
Compression Throughput

No
Flexibility Reconciliation

Data only stored physically once Reconciliation build in

As consequence, adaptions or extensions no aggregates
done only at one place. FICO Merge
No additional persistencies no data (OneDocument)
migration or reconciliation

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 26

Taking Finance to the next level
SAP live on SAP Simple Finance since April 2014
Business Stability on the one hand and Accounting Stability is no more a contradiction
Inherent Reconciliation
Think about:
Merge of silos - no more bridging of
disconnected data silos
Reconciliation effort eliminated by
operating against a single set of
granular data
Immediate business value:
Seamless navigation from balance
sheet view into any dimensionality
Integrated view on external and
internal management reporting
New applications and User Experience
2014 SAP SE or an SAP affiliate company. All rights reserved.
Business Agility
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
Unlimited simulations - apply historic
data to new business context
Model the future based on actuals that
can be looked at any dimensions
Flexibility in Reporting
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
Immediate business value
No more limitations in analytics
New views into ad hoc explorations
Public 27
Roadmap Workshop Agenda General (Structure)

Step 1 Step 2 Post

Overview Discuss Processing
SAP Platform migration & Summary
deployment
Evaluate the Next steps
Preparation business value Create a value
Questionnaire driven transition
roadmap
Agenda details

Remote Onsite 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).

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 28

Invitation to connect
Bernhard Luecke
Director

Bernhard.luecke@sap.com

www.linkedin.com/in/bernhardluecke

2014 SAP SE or an SAP affiliate company. All rights reserved.

Appendix
Cutover Process SoH

Timeline Friday Saturday Sunday Monday Tuesday Wednesday

10pm 9am 9pm 3am

Ramp Controlled Ramp-up Full Ramp-up

down/ Up- Post- Consistency Trans- Spot
ERP@SAP User grade
Migration
Steps Checks ports Checks
Lock Safeguarding

Down Time for End Users

3pm CEST Safeguarding
Point of no return handover

Ramp Controlled
Post- Full Ramp-up
down/ Up- Trans- Ramp-up
accelerated User grade Migration
Steps ports
Lock
cutover Safeguarding

option Consistency Spot

Checks Checks

Down Time for End Users

Point of no Safeguarding
return handover

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 39

Implementation and Solution Simple Finance
Cut-Over Plan @ a glance
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

PLAN

Biz Spot
Ramp- Long Term Upgrade Biz

IT Spot
Buffer

Buffer
New GL and Fin. Add-on Data Migration Data

Buffer
3 hrs

4 hrs

2 hrs
down, Backup, SRM, EhP7, sFIN , CEE SP22, Verify
Restore ISB
~21,5 hrs Validation ~3hrs
~6 hrs SPAU
(including preparation, post steps, 4 hrs buffer) ~11,5 hrs
~ 5hrs ~16hrs
6:00 17:00 9:00
6:30
Backup+ 20:30

.
Delta
22:00
ACTUAL Spau 19:00
~5 hrs

Biz Spot
Ramp- Long Term Upgrade New GL and Fin. Add-on Data Migration

Rev. 74
IT Spot
Data Validation

HANA
down, Backup, SRM, EhP7, sFIN , CEE SP22, 17,5 hrs Biz Verify
5 hrs (optimized
=6 hrs Restore ISB SPAU (including preparation, post steps, . execution) 6 hrs
6:00
5hrs 17:00
12hrs
5:00
4 hrs buffer released)
22:30 3:30 9:30

NGL+Pre
12:00
Backup, Restore, Spau

p 2:15
Data Migration Post Steps

hrs
9:30 hrs (bug w/ profile imports) 10:00 15:00
5:45 hrs
11,5 hrs

NEAR ZERO DOWNTIME APPROACH

Uptime Downtime (technical 4 hours)

Final delta

migration

validation
New GL and Fin. Add-on Data Migration Delta Replay of Backup

Technical
Upgrade Ramp-

System
Data

switch
Biz Verify

replay
Delta
SRM, EhP7, sFIN , CEE SP22, 17,5 hrs recorded
New System down, Validation
SPAU (including preparation, post steps, productive data
5hrs =6 hrs 5 hrs 6 hrs
12hrs 4 hrs buffer released) 1 day
1h 1h 1h 1h
Analyze
System
Data created during productive system operations is recorded original
Copy
data

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 40

SAPs Internal CRM on HANA: Key Implementation Highlights

Solution Scope Migration to CRM on HANA

Global single-instance for Marketing, Sales & 10 weeks for implementation
Inside Sales, Services, Support, Partner
Big Bang Implementation (Global, all Lines of
Management, Finance and Data Management
Business)
15,000+ business users
Search performance 250x
Processes
65% additional database compression
Lead to Opportunity
Standard sales reports down from 5 min to 30 s
Opportunity to Quote

Quote to Close
Complex reports down from 45 min to < 1 min

Interaction Center Management High availability and disaster recovery

Account Planning Less than 5% of custom code adjustments
Marketing & Campaign Planning
Connectivity to 20+ downstream systems
Territory Management

Single Sales Pipeline

2014 SAP SE or an SAP affiliate company. All rights reserved. Public 42