Module 1: Introduction to SAP

SAP S/4 HANA

With _, SAP is providing a new product and a next generation of business applications – simple enterprise software for big data and is designed to help you run simple in the digital economy. With the advanced features of SAP HANA, — is designed for real-time business operations, planning, and Business Intelligence (BI) analyses.

… is the next generation Business Suite

… is the biggest innovation since SAP R/3

… connects people, business networks and devices

… works in real time

… represents efficiency, simplicity and innovation

… master data is managed centrally, for example partners, customers and vendors

is the digital core of the company

that enables digital transformation.

works with in-memory

… has a new and modern design

… works with new technology

provides SAP Fiori user experience and interface

Enterprise Resource Planning (SAP ERP)

Enables a company to support and optimize its business processes

Helps the organization run smoothly

Real-time environment, Scalable and flexible

Collections of logically related transactions within identifiable business functions

traditional SAP applications

In _, all the data is stored at the database level and calculations are performed. The results are displayed at the application layer. Most of the query processing time involves calculations and aggregations. It is recommended that all application logic should be pushed at the database level to improve the performance of query execution.

SAP HANA

_ based applications provide best application performance by pushing the execution into the database as possible. All the data is stored in in-memory database so the reading data is much faster as compared to a conventional database.

supports real-time data replication and hence removes unnecessary latency and complexity of data load.

is an In-Memory Database that allows you to process data very fast

can do way more with its different processing engines

Real-time data analysis

Elimination of unnecessary complexity of hardware

No latency in database due to nightly ETL jobs

In-memory database

Column store supports calculations on the run

Parallel processing

Data compression

Advantages of using SAP HANA

Following are the advantages of using SAP HANA as underlying database.

SAP Intelligent Enterprise

Market leader in enterprise application software

One of the world largest independent software manufacturer

400,000 satisfied Customers in 190 countries

SAP enables companies to

Streamline processes

Use live data

Predict customer trends

Connect entire businesses

Master Data

Stored for a long time and seldom changed

 Represent logically grouped data like:

• Customer Master

• Material Master

• Vendor Master

• General Ledger accounts

Transaction Data

is the system record of business events

 Depending on the business event, different master data and organizational data will be referenced

 For example, during a sales order business event, the following data is stored

• Organizational level: client, company code, sales organization

• Master data: customer, material, pricing (condition)

• Situational data: date, time, person, amount

Documents

Transactions are data sets that are generated if a business transaction was executed.

 Is a record of the business transaction

 Includes all relevant predefined information from the master data and organizational entities

 Example:

• Sales Document

• Purchasing Document

• Material Document

• Accounting Document

Transactions

are data sets that are generated if a business transaction was executed.

Document Flow

The document flow as well as the order status

allow the setting of the status at any point in time

 SAP revises the status every time a change in a

document takes place

Cloud or Subscription Licensing

 Deployment in the private cloud,

maintained by SAP

• SAP provides system and controls

maintenance

• Automatic participation in quarterly

innovation upgrades

• In-App extensibility with limited ABAP

• Current release cycles

• SAP ERP embedded

On-Premise or Traditional licensing

 Traditional licensing with customer

control of deployment and maintenance

• Private control of deployment and

maintenance

• Hardware at companies location

• Privately controlled data

• Fewer release cycles

• Individual requirements possible

• Traditional ABAP extensibility up to core

modification

Efficiency

Effectiveness

Agility

Optimization Levers

 What needs to be optimized?

Efficiency

Acclerate execution

• Automate process

steps

• Digital out-tasking

Effectiveness

Speed up action

• De-layer process

• Raise process

intelligence

Agility

Process flexibility

• Organizational agility

• Assimilate process

innovation

In-Memory Database

Column Store

• In-Memory Processing

• Compression

• Parallel Processing

Fiori

Hardware independence

• Mobile devices

OLAP + OLTP together

Real-time analytics on

current data

• Consolidated forecasts

including actual and planned

cash data

Traditional Database Architecture

Normalized data modeling third

normal form

• Avoid unwanted redundancies

• Avoid inconsistencies and

anomalies

Disadvantages

 Frequent use of redundant data

to increase the performance of

e.g. data aggregation

 Higher effort to update

redundant data

Principles of the S/4HANA Data Model

torage of data in

denormalized form

• Single source of data

• No longer need for redundant

data storage for tasks such as

aggregation

• Processing of aggregation and

analytics on the fly

• Check for inconsistencies and

anomalies due to

denormalization are no longer a

critical task

Transactional Apps

Analytical Apps:

Factsheet

SAP Fiori offers three application types:

Transactional Apps

Access to tasks like create, change or display process with guided navigation

Analytical Apps

Visual overview about business data

Factsheet

View essential information about objects and contextual navigation between related objects

New Implementation

New implementation of SAP S/4HANA

 e.g. for customers migrating a legacy system

(also known as “greenfield” approach

System conversion

Customers who want to convert their current system

into an SAP S/4HANA system

 Database, SAP NetWeaver and application transition

in one step

Landscape transformation

Customers who want to consolidate their landscape or to

selectively transform data into an SAP S/4HANA system

Global Bike Group

Global concern using full ERP capabilities

• Consists of two companies located in the US and in Germany

John Davis

won numerous mountain bike championships in the US

• In 1990, started his own mountain bike company (Frankenstein Bikes)

s responsible for (in terms of reporting)

 Sales, Marketing, Service and Support, IT, Finance, and Human Resources

 sells products and brings in money

Peter Schwarz

grew up on road bikes in the Black Forest, Germany

• As a student, he engineered ultra-light composite frames

• In 1993, started his own bike frame company (Heidelberg Composites)

is responsible for

 Research, Design, Procurement, and Manufacturing Groups

 builds products and spends money

Global Bike Inc.

John Davis and Peter Schwarz met in 2000

• In 2001, merged to form
based in USA

Global Bike Group

World-class bicycle company serving both the professional and “prosumer” in touring and off-road racing.

• Focus on:

 Quality

 Toughness

 Performance

Global Bike Germany GmbH

based in germany

Trading Goods

Raw Materials

Semi-Finished Goods

Finished Goods

Products

Customers

Vendors

Business Partners

Sell – Fulfillment

Buy – Procurement

Make – Production

Track – Financial Accounting

Track – Controlling

People – Human Capital Management

Store – Inventory and Warehouse Management

Maintain – Enterprise Asset Management

Service – Customer Service

Project – Project Management

Environment – Environment, Health and Safety

Business Processes

Order-to-Cash Process

Sales and Distribution (SD)

Materials Management (MM)

Financial Accounting (FI)

Procure-to-Cash Process

Materials Management (MM)

• Financial Accounting (FI)