Preface

19

Who This Book Is For

19

How This Book Is Organized

19

Structure

20

Case Study

24

Acknowledgments

27

Conclusion

28

Introduction

29

What Is Digital Transformation?

30

Digital Disruption

31

Digital Optimization

32

Digital Transformation Business Case

33

Begin with the End

33

Plan into Action

34

Learning to Read the SAP Landscape

37

IT Systems

38

SAP Business Suite versus SAP S/4HANA

39

Cloud versus On-Premise

40

1 Customer Experience with SAP C/4HANA

47

1.1 Business Case

49

1.2 Marketing

51

1.2.1 Challenges in Marketing

51

1.2.2 SAP Marketing Cloud

55

1.2.3 SAP Acquisitions in Marketing

61

1.3 Sales

62

1.3.1 Challenges in Sales

63

1.3.2 SAP Sales Cloud

66

1.4 Commerce

70

1.4.1 Challenges in Commerce

71

1.4.2 SAP Commerce Cloud

73

1.5 Customer Service

75

1.5.1 Challenges in Customer Service

77

1.5.2 Customer Service Channels

78

1.5.3 SAP Service Cloud

80

1.6 Data

83

1.6.1 Challenges in Data

84

1.6.2 SAP Customer Data Cloud

84

1.7 The Road Ahead

85

2 Sales and Service with SAP S/4HANA

87

2.1 Business Case

88

2.2 Order and Contract Management

90

2.2.1 Process Steps

91

2.2.2 Business Models

92

2.2.3 Product-as-a-Service

93

2.2.4 Business Networks and Order Channels

94

2.2.5 Order and Contract Management with SAP S/4HANA

96

2.3 Sales Planning and Performance Management

100

2.3.1 Incentive and Commission Management

101

2.3.2 Sales Forecasting

102

2.3.3 Sales Analytics

104

2.4 Billing and Revenue Management

105

2.4.1 Billing and Revenue Management Models

106

2.4.2 Solution Options

108

2.5 Customer Service

111

2.5.1 Customer Service Models

112

2.5.2 Solution Options

114

2.6 The Road Ahead

117

3 Supply Chain Planning with SAP Integrated Business Planning

121

3.1 Business Case

123

3.2 Sales and Operations Planning

124

3.2.1 Challenges in Sales and Operations Planning

124

3.2.2 Demand Planning

127

3.2.3 Supply Review

129

3.2.4 Pre-Sales and Operations Planning Review

131

3.2.5 Executive Review

131

3.3 Demand Management

132

3.4 Inventory Management

133

3.4.1 Inventory Quantity

134

3.4.2 Inventory State

136

3.4.3 Inventory Location

137

3.5 Response and Supply Management

137

3.6 Supply Chain Analytics

139

3.7 The Road Ahead

140

4 Sourcing and Procurement with SAP S/4HANA and SAP Ariba

143

4.1 Business Case

144

4.2 SAP Portfolio Overview

146

4.2.1 SAP S/4HANA Enterprise Management

146

4.2.2 SAP Ariba

147

4.2.3 SAP Fieldglass

149

4.3 Sourcing

150

4.3.1 Reactive Sourcing

150

4.3.2 Tactical Sourcing

151

4.3.3 Strategic Sourcing

153

4.4 Purchasing

161

4.4.1 Purchase Request

162

4.4.2 Purchase

164

4.4.3 Acknowledgment and Shipping Notifications

164

4.4.4 Receiving

165

4.4.5 Invoicing

165

4.5 Services Procurement

167

4.5.1 Services Purchasing

168

4.5.2 Services Processing

169

4.6 The Road Ahead

170

5 Manufacturing with SAP S/4HANA

173

5.1 Business Case

174

5.2 SAP Portfolio Overview

176

5.3 Production Planning

178

5.3.1 Planning Strategies

179

5.3.2 Material Requirements Planning in SAP S/4HANA

182

5.4 Production Execution

184

5.5 Manufacturing Execution

186

5.5.1 SAP Manufacturing Execution

187

5.5.2 SAP Manufacturing Integration and Intelligence

187

5.5.3 SAP Plant Connectivity

189

5.6 Production Quality Management and Delivery

189

5.7 The Road Ahead

191

6 Supply Chain Management with SAP S/4HANA

193

6.1 Business Case

195

6.2 Inventory Management and Basic Warehouse Management

196

6.2.1 Goods Receipt and Goods Issue

197

6.2.2 Moving Stock between Locations

198

6.2.3 Cycle Counting and Physical Inventory

198

6.2.4 Stock Types

199

6.3 Extended Warehouse Management

203

6.4 Transportation Management

206

6.5 The Road Ahead

209

7 Asset Management with SAP S/4HANA

211

7.1 Business Case

212

7.2 Maintenance Management

213

7.2.1 Maintenance Strategies

213

7.2.2 SAP Portfolio for Asset Management

217

7.3 Asset Operations

228

7.3.1 SAP Asset Intelligence Network

228

7.3.2 SAP Asset Strategy and Performance Management

229

7.4 The Road Ahead

230

8 Research and Development with SAP S/4HANA

233

8.1 Business Case

235

8.2 Innovation Management

235

8.3 Product Lifecycle Costing

238

8.4 Portfolio and Project Management

241

8.5 Commercial Project Management

242

8.6 The Road Ahead

245

9 Financial Accounting with SAP S/4HANA

249

9.1 Business Case

251

9.2 Financial Statements

252

9.2.1 Income Statement/Profit and Loss

253

9.2.2 Balance Sheet

254

9.2.3 Cash Flow Statement

257

9.3 General Ledger Accounting

258

9.3.1 Chart of Accounts

261

9.3.2 Journal Entries

262

9.3.3 SAP S/4HANA Finance

263

9.4 Financial Close

265

9.5 Receivables Management

268

9.6 Invoice Management and Accounts Payable

272

9.7 Asset Accounting

275

9.8 Real Estate Management

277

9.9 Financial Consolidation

278

9.10 Governance, Risk, and Compliance

282

9.11 Treasury Management

284

9.12 The Road Ahead

286

10 Management Accounting with SAP S/4HANA

287

10.1 Business Case

288

10.2 Cost Management

290

10.3 Planning and Control

293

10.4 Profitability Analysis

297

10.5 Project Accounting

300

10.6 The Road Ahead

303

11 Core Human Resource and Talent Management with SAP SuccessFactors

307

11.1 Business Case

308

11.2 Hire-to-Retire Process Overview

309

11.3 Core Human Resources and Payroll

312

11.4 Time and Attendance

317

11.5 Recruiting and Onboarding

319

11.5.1 Recruiting

320

11.5.2 Onboarding

322

11.6 Learning and Development

324

11.6.1 Learning

325

11.6.2 Succession and Development

326

11.7 Performance and Compensation

327

11.7.1 Performance and Goal Management

327

11.7.2 Compensation

329

11.8 Workforce Planning and Analytics

330

11.9 The Road Ahead

331

12 Contingent Workforce Management with SAP Fieldglass

333

12.1 Business Case

335

12.2 Simple Contingent Work

336

12.3 Complex Contingent Engagements

340

12.4 The Road Ahead

343

13 Travel and Expense Management with SAP Concur

345

13.1 Business Case

346

13.2 Expense

349

13.2.1 Making a Claim

350

13.2.2 Approving a Claim and Reimbursement

350

13.2.3 Additional Functionality for Concur Expense

351

13.3 Travel

352

13.3.1 Travel Management Companies

353

13.3.2 Additional Functionality for Concur Travel

355

13.4 Reporting

356

13.5 Monitoring

357

13.6 The Road Ahead

357

14 Database and Platform

361

14.1 Business Case

362

14.2 Architecture Overview

363

14.3 Database Technology

366

14.3.1 Database Services

368

14.3.2 Data Access

371

14.3.3 Analytics Processing

373

14.4 Application Platforms

375

14.4.1 SAP Cloud Platform Core Capabilities

378

14.4.2 SAP Leonardo

382

14.5 User Interface

383

14.5.1 SAP Fiori

384

14.5.2 Artificial Intelligence and User Interfaces

386

14.6 The Road Ahead

388

15 Data Warehouse

391

15.1 Business Case

392

15.2 Data Warehousing

394

15.2.1 SAP BusinessObjects and SAP Lumira

395

15.2.2 SAP Business Warehouse

397

15.2.3 SAP Business Warehouse on SAP HANA

400

15.2.4 SAP BW/4HANA

401

15.2.5 Embedded Analytics

405

15.3 Big Data

406

15.4 The Road Ahead

408

16 Analytics

411

16.1 Business Case

412

16.2 Business Intelligence

413

16.2.1 Traditional Business Intelligence

414

16.2.2 Modern Business Intelligence

415

16.2.3 Bimodal Business Intelligence

419

16.3 Enterprise Performance Management

427

16.3.1 SAP Business Planning and Consolidation

427

16.3.2 SAP Profitability and Performance Management

428

16.4 Predictive Analytics

429

16.4.1 Predictive Analytics Library

430

16.4.2 SAP Predictive Analytics

430

16.5 The Road Ahead

431

17 Enterprise Information Management

435

17.1 Business Case

436

17.2 Data Strategy

438

17.3 Data Governance

440

17.4 Data Quality and Remediation

445

17.4.1 Discover and Measure

447

17.4.2 Monitor and Improve

449

17.5 Data Migration

451

17.5.1 Data Migration Phases

452

17.5.2 SAP S/4HANA Migration Cockpit

455

17.5.3 SAP Data Services

456

17.5.4 SAP HANA Smart Data Integration

456

17.5.5 SAP HANA Smart Data Quality

457

17.6 The Road Ahead

458

18 Application Integration

463

18.1 Business Case

464

18.2 Cloud Integration

466

18.3 Process Orchestration

470

18.3.1 SAP Process Orchestration Architecture

471

18.3.2 SAP Process Integration

472

18.3.3 SAP Business Process Management

475

18.3.4 SAP Business Rules Management

477

18.4 API Management

479

18.5 Process Mining

481

18.6 Operational Process Intelligence

485

18.7 The Road Ahead

488

19 Administration

491

19.1 Business Case

492

19.2 Business Processes and Best Practices

493

19.3 Portfolio-to-Project

496

19.4 Requirement-to-Deploy

500

19.5 Request-to-Fulfill

505

19.6 Detect-to-Correct

506

19.7 The Road Ahead

511

Conclusion

513

Business Case Conclusion

513

. Transformation Program

514

. Transformation Results

517

Emerging Business Challenges

518

The Road Ahead for SAP

519