SAP BVN Utilicast v1
- 1. Business Value Networks (BVN) for SAP HANA & The Digital Economy www.utilicast.com www.businessvaluenetwork.org
- 2. SAP is Responding to the Accelerated “Digitization of The Economy” With a Completely New Suite of Products • SAP has recognized that their current platform will not meet the needs of the “digital economy”. • In response in early 2015 SAP unveiled the S/4 HANA platform business suite, HANA Cloud Platform, IOT Services & SAP Business Network. • SAP HANA is an entirely re-architected platform, promises to offer SAP customers a foundation from which to transition themselves into truly digital companies. • The 2015 unveiling of the S/4 HANA business suite is the most significant announcement made by SAP since the unveiling of the R/3 ERP package in 1992 • Because SAP is used by 80% of the fortune 500 companies this is a significant event for the world-wide business economy as a whole, and an important pivot point for SAP customers
- 3. Why is the Digital Economy & S/4 HANA important? 50B internet connected devices by 2020 Cyber Physical Systems / Robotics Internet of Things / Product Innovation Internet of Services Smart Supply Chain / Factory Cloud Mass Customization / Innovation Reduced Costs Business Networks versus Monoliths Blurring of industry lines (Uber, Apple) Legacy ERP cannot meet future needs SAP ERP platform will sunset in 2025 SAP S/4 Hana can address key elements of business driver challenges IOT, Business Networks & Integration “Rapid Industry Evolution” “Aging ERP Systems” Digital Economy DriversTrends Implications Tech. Status Quo Not Viable SAP-based strategy likely Most Realistic & Mandated Business Model Changing Rapidly Flexibility & Simplicity Key Factors Much More Integration Change in Technology Paradigm / Platform 4th Industrial Revolution is happening Now! Moving away from SAP ERP as High Risk / Complex Too Complex for a “Bolt On” Strategy What are the compelling digital economy drivers for an existing SAP customer?
- 4. SAP’s Strategy is directly influenced by a blueprint for the digital economy called “industry 4.0” •Broadening of process integration to include, human, computational and physical components •Integration of 25 Billion internet connected devices into the global economy •Emergence of internet based B2B networks as a key economic driver in all industries •New productivity boom for core business functions based on simpler real time processes Smart Operations Internet of Services Cyber Physical Systems IOT
- 5. SAP’s Legacy Suite Does Not Support The Digital Economy Blueprint • Current platform is not focused on integration outside of the organization • Current platform does not easily support IOT • Current platform is not integrated with B2B networks and focused on internal processes • Current SAP platform is complex, slow to change, has many batch components and is not easy to use S/4 “Run Simple” SAP Business Networks HANA Cloud Platform SAP IOT Services
- 6. In Contrast SAP’s HANA Based Platform Is Architected From the “Ground Up” For The Digital Economy • Broadening of process integration to include, human, computational and physical components • Integration of 25 Billion internet connected devices into the global economy • Emergence of B2B networks integrated into SAP ecosystem • Ariba • Fieldglass • Concur etc.. • Simpler and more efficient and flexible real time processes for business and IT S/4 “Run Simple” SAP Business Networks HANA Cloud Platform SAP IOT Services
- 7. What Does the new SAP HANA S/4 platform & Digital Economy mean for your business? • Are you an existing SAP customer? • Are you adequately aware of the major developments with the SAP HANA platform and the digital economy? • Have you explored what the SAP HANA platform and the digital economy could mean for your business? • Do you urgently need an unbiased “point of view” regarding SAP HANA and the implications and potential impacts for your company and your industry of the digital economy? • EFT is your best partner in the marketplace for developing an objective viewpoint on what SAP HANA really means for your business based on • Unique Business Value Network (BVN) methodology developed for SAP HANA & the Digital Economy • EFT’s unique “restructuring and big bet initiative” heritage • Our unique local professionals seasoned in • Operator experience in your industry • CIO advisory for fortune 500 companies • “Big Bet Initiative” delivery & IT Transformation
- 8. Where to begin your journey? Given the transformative potential of the digital economy and SAP HANA for all industries, every major company using SAP needs to urgently assess the implications for their business of the digital economy and how SAP can enable it. 8 Understanding Current State HANA Impacts ROI Strategy Options Decision Priorities BVN Future State BVN Architecture Investment Strategy Action BVN Roadmap Mobilization Capabilities Execution Awareness HANA S/4 IOT Services HANA Platform Digital Economy
- 9. Example Business Value Network Roadmap In line with the business strategy, Evolve Business Practices Evolve IT Infrastructure Evolve Organization HANA Platform Foundation Initial Business Suite On HANA Platform Integrate IOT, Continue Business Suite Migration On HANA Platform Integrate Partners, Integrate IOT, Custom Apps, Finish Migration On HANA Platform Strategic Approach Real Time Apps & IOT Real Time Applications Real Time Analytics Real Time Apps, IOT & B2B EfficientFunctionServiceOrientedDynamicNetwork Intelligence Process Flexibility Innovation Evolution CorePlatformApplicationsDevicesPartners Tactical Approach
- 10. Appendix
- 11. Business Value Network Overview • The Business Value Network Movement is an experiment in building the philisophical and methodological basis of real world value networks utilizing the SAP S/4 HANA Platform. • Value Networks are the business networks which will make up the “internet of services” which is a foundational component of Industry 4.0 and a key element of SAP’s HANA Platform strategy. • The business value network organization is all about sharing the “know how” on building the value networks that make up the “internet of services” utilizing the breakthrough technology of SAP.
- 12. Approach Our approach has four components 1. A book that outlines the key philisophical elements of value networks 2. A methodology that the community can use to build value networks using the SAP HANA platform 3. Business value network projects both past and present that the community can participate in and learn from 4. A vibrant community of business value network professionals and enthusiasts who want to be a part of this revolution
- 13. What is the SAP HANA platform? Originally released in 2010, a ‘reinvented’ database solution that underpins the go-forward SAP offering • SAP HANA is an architecture for analytical solutions built by SAP, with a primary focus of providing real-time insight into oper. data. Designed to handle both high transaction rate and complex query processing on the same platform • A next-generation database technology, which runs in main memory (‘in-memory’)and processes information extremely fast. It’s so fast that it does not need a separate operational analytics system or data warehouse. • SAP HANA is the platform for all of SAP’s innovation. Because it is so fast, it is no longer necessary to hold all of the duplicate data in a transactional system including calculations like percentages, totals, indexes and aggregates. This leads to a much smaller data footprint and dramatically faster processing. BENEFITS • Real time reporting and business applications • New and enhanced data analytics capabilities • Simplified architecture • Data center & operations enhancements • Platform integration and openness • Reduced database size & related storage costs • Expanded cloud capabilities
- 14. WHAT is S/4 HANA? The recently announced SAP software package runs exclusively on the HANA platform solution • SAP S/4HANA is a replacement to the SAP R/3 or Business Suite platforms that have been in place in many global businesses since the release of SAP R/3 in 1992 • SAP S/4HANA defines SAP’s software strategy and innovation for the next 10 years, as the company is rewriting the software layer to take advantage of the tremendous performance of SAP HANA • S/4HANA will only run on SAP’s HANA platform, and it will not run on any other platform. This is extremely significant because previously, all SAP products were designed to run on any database platform, including those from Oracle, Microsoft and IBM • SAP plans to support its existing Business Suite through 2025, at which point it will sunset related support • S/4 HANA is a bundled appliance (hardware and software packaged together) that is itself an IoT (Internet of Things) device. As part of a broader system, it has the potential to become an information processing hub within the IoT and a powerful lynchpin for its expansion • Beyond an ‘ERP upgrade’ S/4 HANA offers strategic opportunity to fundamentally transform architecturally
- 15. WHAT is S/4 HANA? • Next generation business suite built on an in-memory platform and modern design principles; delivers simplifications and innovations geared to help businesses grow in the digital economy SAP S/4 HANA On-Premise Cloud SAP Fiori UX role-based user experience for all devices SAP S/4 HANA Extensions and Applications applications for lines of business and industries SAP HANA Platform in-memory platform for all data Ariba | Concur | Fieldglass | hybris | SuccessFactors Native integration for hybrid People Devices Business Networks Big Data Social Networks Internet of Things Reference: SAP S/4 HANA FAQ, May 2015 v4
- 16. 16 SAP vision - One platform for the “Connected” enterprise • Advanced capabilities and new user experiences to connect formerly disparate business processes and siloed applications into a coherent, holistic enterprise In-Memory DB App Server Web Server Internet of Things (IOT), Mobile, Desktop etc. SAP Appliance
- 17. 17 Companies require an experienced and independent advisors to advise on such a COMPLEX MIGRATION • SAP’s lauch of S/4 HANA, requires its clients to migrate the existing ERP applications to this new S/4 HANA platform (or some non SAP alternative) within the next 5 – 12 years, as SAP will stop the maintenance of its old ERP platform in 2025 • We have developed a digital economy methodology called Business Value Networks that can help you define a blueprint and roadmap for your digital economy transformation using SAP HANA. • Senior leaders: Our senior leaders, many of whom are ex-CIOs, bring deep insight into the opportunities and challenges faced by businesses with practical approaches that work versus theoretical approaches that don’t • Business Focus: We combine this extensive business experience with a fact-based approach to get to the heart of the issues quickly and then take a hands-on approach to execution • Objective and independent: We have a valuable independent perspective with an unbiased understanding of the various parties and roles of the SAP ecosystem (e.g. system integrator, outsourcing/ hosting partners, hardware vendors) • Action and results oriented: Our heritage is restructuring and managing distressed projects. Our clients frequently comment that we drive change and rapid results where internal teams and other consultants have failed