Preface

19

Target Audience

19

How to Read This Book

20

How This Book Is Organized

20

Acknowledgments

22

1 Introduction

23

1.1 Current ERP Challenges

23

1.2 A New ERP Paradigm: Cloud ERP

27

1.2.1 SAP S/4HANA Cloud: The New ERP Concept

27

1.2.2 Composable Applications and Industry- and Scenario-Based Applications

28

1.3 SAP S/4HANA Cloud Use Cases and Business Value

31

1.3.1 Strategic Business Value

32

1.3.2 Operational and Financial Benefits

35

1.3.3 The New Digital Reality

38

1.3.4 Reinvented ERP Business Processes

39

1.4 SAP S/4HANA Cloud Solution Architecture

44

1.4.1 Cloud Qualities

44

1.4.2 Solution Architecture

46

1.4.3 Multitenancy and Zero Downtime

49

1.4.4 Scalability and Elasticity

51

1.5 Summary

53

2 The Intelligent Enterprise

55

2.1 From the Monolithic ERP System to the Intelligent Suite

55

2.1.1 Intelligent Enterprises

56

2.1.2 Starting Situation and Market Demands

57

2.1.3 Intelligent Enterprises as Integrated Enterprises

58

2.1.4 Suite Qualities

60

2.1.5 Further and Updated Guidance

63

2.2 End-to-End Business Processes

64

2.2.1 Strategic Significance for SAP S/4HANA Cloud

64

2.2.2 SAP Reference Business Architecture

65

2.2.3 Business Process-Driven Software Development at SAP

67

2.3 Industry Cloud

68

2.3.1 Industry Cloud Strategy

69

2.3.2 Key Concepts of SAP’s Industry Cloud

71

2.4 Business Networks

73

2.4.1 From ERP to Networked Resource Planning: A Unified Business Network

74

2.4.2 Trading Partner Collaboration

75

2.4.3 SAP Business Network for Procurement

78

2.4.4 SAP Business Network for Supply Chain

80

2.4.5 SAP Business Network for Logistics

83

2.4.6 SAP Business Network for Asset Management

85

2.5 Business Process Intelligence

87

2.5.1 SAP Signavio Solutions

87

2.5.2 Levers of Transformations: Time to Insight and Time to Adapt

88

2.5.3 Stages of Business Process Intelligence

89

2.5.4 Business Process Intelligence and the Intelligent Enterprise

90

2.5.5 Business Process Intelligence and RISE with SAP

91

2.6 Sustainability Management

92

2.6.1 Holistic Approach to Managing Sustainability

92

2.6.2 Sustainability Management Capabilities

94

2.7 Experience Management

97

2.7.1 Experiences Collected by SAP

98

2.7.2 Closing the Loop on Company Activities

99

2.8 SAP Business Technology Platform

100

2.8.1 Platform Business Models, Platform Types, and SAP Business Technology Platform

101

2.8.2 SAP Business Technology Platform Capabilities

101

2.8.3 Value-Generating Scenarios

104

2.8.4 Continuous Technical Consolidation and Evolution

105

2.8.5 Development and Extension Options

106

2.8.6 Partner and Organization Enablement

108

2.9 RISE with SAP

109

2.9.1 Transforming and Innovating Businesses

110

2.9.2 Recipe for Business Innovation and Transformation Success

111

2.9.3 Journey Structure

113

2.9.4 Big Picture and Benefits

117

2.10 Summary

118

3 Intelligent Technologies

119

3.1 Situation Handling

120

3.1.1 Situation Handling: An Example

120

3.1.2 Proactive User Support

121

3.1.3 Tracking and Analysis

122

3.1.4 Intelligent Situation Automation and Machine Learning Concept

122

3.1.5 Activation and Configuration

124

3.2 Robotic Process Automation

124

3.2.1 Addressed Business Challenges and Business Value

125

3.2.2 Architecture and Solution Components

126

3.2.3 SAP Intelligent RPA Content

127

3.3 Machine Learning and Predictive Analytics

130

3.3.1 Approaches to Machine Learning

131

3.3.2 Solution Architecture

133

3.3.3 Best Practices

134

3.4 Internet of Things

135

3.4.1 Main Capabilities of SAP IoT

135

3.4.2 Internet of Things–Enabled Business Processes in SAP S/4HANA Cloud

137

3.5 Intelligent Technologies: An Example

139

3.6 Summary

140

4 User Experience

143

4.1 SAP Fiori Design System

143

4.1.1 Introduction to SAP Fiori

143

4.1.2 SAP Fiori and SAP S/4HANA Cloud

144

4.1.3 Your Personal Entry Point: SAP Fiori Launchpad

145

4.1.4 Useful Services Available Everywhere

147

4.1.5 Apps

150

4.1.6 Bringing Artificial Intelligence to the User Experience

154

4.2 Mobile User Experience

155

4.2.1 Mobile Web Experience of an Inventory Manager

156

4.2.2 Mobile Web Experience of an Internal Sales Representative

157

4.2.3 Native Mobile Apps

159

4.2.4 SAP Mobile Start

161

4.2.5 SAP BTP SDK for iOS and SAP BTP SDK for Android

161

4.3 User Interface Adaptation

162

4.3.1 Key User Adaptation for SAP Fiori Apps

162

4.3.2 Key User Adaptation for Classic Applications

164

4.3.3 End User Personalization

166

4.4 Digital Assistants

169

4.4.1 Chatbots Based on SAP Conversational AI

170

4.4.2 Human-to-Human Chat

171

4.4.3 Groupware and Microsoft Teams Integration

172

4.5 Summary

173

5 Analytics

175

5.1 Embedded Analytics and Enterprise Analytics

175

5.1.1 Embedded Analytics Enabled by SAP Fiori and SAP Analytics Cloud

177

5.1.2 Enterprise Analytics Using SAP Analytics Solutions

180

5.2 Embedded Analytics in SAP S/4HANA Cloud

183

5.2.1 Business User Persona

183

5.2.2 Functions for Business Users

184

5.2.3 Analytics Specialist Persona

191

5.2.4 Custom Queries, Reports, and KPIs

193

5.3 Architecture and Integration with Other SAP Analytics Solutions

199

5.3.1 Analytics Architecture of SAP S/4HANA Cloud

199

5.3.2 ABAP Core Data Services Used for Analytics in SAP S/4HANA Cloud

203

5.3.3 Data Extraction to SAP BW/4HANA and SAP Data Warehouse Cloud

205

5.3.4 SAP Analytics Cloud

205

5.4 Summary

207

6 Business Capabilities

209

6.1 Sourcing and Procurement

209

6.1.1 Service Procurement

211

6.1.2 Sourcing

212

6.1.3 Operational Procurement

214

6.1.4 Machine Learning-Based Purchasing Functionality

217

6.1.5 Analytics in Sourcing and Procurement Functionality: Insight to Action

219

6.2 Manufacturing

222

6.2.1 Supported Production Modes

222

6.2.2 Demand-Driven Production Planning

224

6.2.3 Integrated Production Scheduling

225

6.2.4 Transparent Production Operations

226

6.2.5 Embedded Production Execution and Integrated Production Execution

229

6.2.6 Repetitive Manufacturing

231

6.2.7 Transparent Material Flow with Kanban

231

6.2.8 Outsourced Manufacturing

233

6.2.9 Quality Management

235

6.3 Logistics

236

6.3.1 Inventory Management

237

6.3.2 Logistics Execution

241

6.3.3 Integrated Warehouse Management

243

6.3.4 Order Promising: Available to Promise

245

6.3.5 Transportation Management

248

6.3.6 Handling Unit Management

249

6.4 Sales

250

6.4.1 Product Vision and Direction

250

6.4.2 Quote to Order

252

6.4.3 Order and Contract Management

256

6.4.4 Customer Invoice Management

262

6.4.5 Customer Returns Management

263

6.4.6 Sales Analytics

265

6.5 Service

267

6.5.1 Service Characteristics and Processes

268

6.5.2 Intelligent Service Management

270

6.5.3 Service Order Management

270

6.5.4 Service Contract Management

275

6.5.5 In-House Repair

278

6.6 Maintenance Management

281

6.6.1 Intelligent Asset Management

282

6.6.2 Managing Asset Master Data

285

6.6.3 Plan-to-Optimize Assets

285

6.6.4 Operate-to-Maintain Assets

287

6.7 Finance

294

6.7.1 Universal Journal

295

6.7.2 Record-to-Report Process

296

6.7.3 Financial Planning and Analysis

300

6.7.4 Invoice-to-Pay and Invoice-to-Cash Processes

301

6.7.5 Treasury and Cash Management

303

6.7.6 Financial Compliance Management

305

6.8 Cross Capabilities

307

6.8.1 Solution Business Models

307

6.8.2 Advanced Intercompany Sales

314

6.8.3 Advanced Variant Configuration

317

6.8.4 Billing and Revenue Innovation Management

322

6.8.5 Product Lifecycle Management

326

6.8.6 Enterprise Portfolio and Project Management

333

6.8.7 Environment, Health, and Safety

337

6.8.8 Product Compliance

339

6.9 Industry Variants

342

6.9.1 Professional Services

342

6.9.2 Discrete Manufacturing Industries

348

6.9.3 Process Manufacturing Industries

353

6.10 Summary

359

7 Globalization

361

7.1 Introduction

361

7.2 Global Tax Management

363

7.3 Global Payments

368

7.4 Localization Extensibility

369

7.4.1 Layers of a Localization

370

7.4.2 Localization Extensibility

370

7.4.3 Building a Community of Practice

370

7.5 Summary

371

8 Extensibility

373

8.1 In-App/Key User Extensibility

374

8.1.1 User Interface Flexibility

375

8.1.2 Field Extensibility

375

8.1.3 Business Logic Extensibility and Tracing

377

8.1.4 Custom Business Objects

378

8.1.5 Custom CDS Views

379

8.1.6 Lifecycle Management of In-App Extensions of SAP S/4HANA Cloud

380

8.1.7 Extensibility Templates

380

8.1.8 Exploring Extensibility Options

380

8.2 Side-by-Side Extensibility

381

8.2.1 Side-by-Side Extensions

381

8.2.2 SAP Extension Suite

384

8.2.3 Event-Driven Extensions

388

8.3 In-App Developer Extensibility

391

8.3.1 Development Model

392

8.3.2 APIs, Extension Points, and Stability Contracts

394

8.3.3 Programming Language and Tools

396

8.3.4 Lifecycle Management

398

8.4 Summary

399

9 Integration

401

9.1 Integration Strategy

401

9.1.1 Integration Rationale

401

9.1.2 Integration Best Practices

402

9.1.3 Cloud Integration Setup Procedure and Tooling

403

9.2 Application Programming Interfaces and Third-Party Integration

404

9.2.1 SAP S/4HANA Cloud Integration Technologies

404

9.2.2 Discovery of SAP S/4HANA Cloud APIs and Business Events

406

9.2.3 SAP S/4HANA Cloud API Request Process

407

9.2.4 Third-Party Integration

408

9.3 Master Data

408

9.3.1 Master Data Integration

409

9.3.2 Master Data Management

416

9.4 Summary

422

10 SAP S/4HANA Cloud Adoption and Lifecycle Management

423

10.1 Adoption versus Implementation

423

10.2 SAP Activate Methodology

425

10.2.1 Key Concepts of SAP Activate

426

10.2.2 Components of SAP Activate

429

10.3 SAP S/4HANA Cloud Three-System Landscape

433

10.4 Tool Support for SAP Activate

437

10.4.1 Business-Driven Configuration

438

10.4.2 SAP Cloud ALM

450

10.5 Phases of SAP Activate

459

10.5.1 Discover

459

10.5.2 Prepare

460

10.5.3 Explore

462

10.5.4 Realize

464

10.5.5 Deploy

466

10.5.6 Run

468

10.6 Identity and Access Management

469

10.6.1 Identity and Access Management and Authorizations

469

10.6.2 SAP Activate Methodology for Identity and Access Management

470

10.6.3 Phase Activities

471

10.6.4 SAP Cloud Identity Services

473

10.6.5 Integration

474

10.7 Data Migration

474

10.7.1 SAP S/4HANA Migration Cockpit

474

10.7.2 Data Migration Process and Project Considerations

477

10.8 Release Management

478

10.8.1 Release Upgrade Schedule

479

10.8.2 Plan and Perform Preparation Steps

480

10.8.3 Tools and Best Practices

480

10.8.4 Communication and Organizational Change Management Measures

482

10.8.5 Continuous Delivery for SAP S/4HANA Cloud

482

10.9 Test Management

485

10.9.1 Testing SAP S/4HANA Cloud Implementations

485

10.9.2 Test Automation Tool for SAP S/4HANA Cloud

487

10.10 Embedded Learning and User Assistance

491

10.10.1 In-Application User Assistance

491

10.10.2 Embedded Enablement Content

492

10.10.3 What’s New Content

493

10.10.4 SAP Enable Now

494

10.11 Roadmap, Customer Influence, and Community

495

10.11.1 SAP Road Map Explorer

496

10.11.2 Customer Influence Opportunities

498

10.11.3 SAP Community

500

10.12 SAP Services and Support Offerings

502

10.12.1 Kickstart for Cloud Onboarding

504

10.12.2 SAP Value Assurance for SAP S/4HANA Cloud

504

10.12.3 Quick-Start Service for SAP S/4HANA Cloud

504

10.12.4 Value Adoption Service for SAP S/4HANA Cloud

505

10.12.5 SAP Preferred Success

506

10.12.6 SAP Enterprise Support

506

10.13 Critical Success Factors

507

10.14 Summary

509

11 Conclusion

511

11.1 Additional Learning Resources

511

11.1.1 SAP Learning Site

511

11.1.2 openSAP

512

11.1.3 SAP Learning Hub

513

11.1.4 SAP Learning Journey Illustrations

513

11.1.5 SAP Certification

514

11.1.6 SAP Help Portal

515

11.2 Summary and Outlook

516

The Authors

519

Coauthors

521

Chapter 1

521

Chapter 2

521

Chapter 3

522

Chapter 4

522

Chapter 5

522

Chapter 6

522

Chapter 7

525

Chapter 8

525

Chapter 9

525

Chapter 10

525

Chapter 11

526

Reviewers

526