1435 1A Andrew Faid

Real World S/4HANA
Andrew Faid
Fonterra Co-operative Group
Mastering Business Analytics with SAP 2016
@masteringsap #BAT16SA
Mastering SAP Technologies 2016
Main Message
Real World S4/HANA
An executive sees a demo of approving Purchase Orders on an
iPhone and announces we are going S4/HANA. What does this
mean in the real world? How do you get ready? How do you
differentiate the hype from the reality? Fonterra, a leading
multinational dairy company, is on the journey - forcing us to
learn about a heap of new things and apply them against the
current instances.
What Ill Cover

A bit about Fonterra
A bit about Hana and S/4
A bit about how these two things get along!
Some learnings / Points to Take Home
Total Assets Employed
NZ$15.5 billion*
Total Equity
NZ$6.5 billion*
Annual Revenue
NZ$22.3 billion*
Dairy Ingredients Manufactured In

New Zealand
2.5 million metric tonnes*
Total Ingredients Sales Volumes
2.8 million metric tonnes*
Employees
18,195*
Shareholders
10,721
HANA is a database and it is in-memory

All of a sudden a few things become possible
Simpler data structure (no aggregations, no separate reporting
landscape)
Predictive analysis
Less things to break
S/4 is a fundamentally new code base to take

advantage/drive this simplification
Fiori changes the UI
Better UI / Mobilised out of the box
From This
To This
Currently size = disk and disk is very cheap (effectively

free)
5 tier environments with HA and DR solutions
No great pressure on size housekeeping etc
ECC#1 = 11.2 TB
ECC#2 = 4.8 TB
1 TB = $NZ150,000
6 TB = $NZ900,000
12TB =$NZ
Key takeaway #1
Make sure you have your database size under control

Clean up and Re-Org databases
Run Hana Sizing Report
Purge Technical tables
Run Hana Sizing Report again
Dust off and Implement your Archiving strategy
Every Supermarket every day

How do you rebuild the plane while flying
And its not just the plane
New airports, new runways, new crew
Remember we are $20B

History
Unity Program
Velocity Initiatives
2015
REGION 1 ERP
REGION 2 - ERP
REGION 3 ERP
REGION 4 ERP
REGION 5 - ERP
2016
2017
Fiori why does UX matter?

Expectation of usability - Next generation of users
Less (read zero) Training
Intuitive
Any device, anywhere
Technology enablement to get to User led design
But what actually is Fiori?

Design Ethos/Approach
Some pre-built template micro-apps
Fiori Apps Library
Somewhere for those Apps to Run
Fiori Launch pad, On-prem or in the Cloud (HCP)
Some way to connect
Gateway Hub ODATA end point

A back end to connect to
meanwhile(while we are thinking about Hana)
Looked at UX strategy
Established Gateway service
Started looking at Candidate Apps
Patched backend systems
Recap
Big ECCs = Big RAM = Big $$$

The change process for a live system is a challenge
Need to create a Business imperative
Got on with with Fiori Pre-requisites
Question is not Hana or nor Hana but SAP or not SAP
..what if we
started smaller
2016
2017
2018
2019
> 2020
Digitisation
Simplification
Consolidation
Cloud enabled
Target State
Digital UX through Fiori

Central Finance
SAP HANA in memory DB
REGION 1 SAP ECC
Simple Logistics
Reduction of ERP footprint
Deployment flexibility
Consolidate ERP footprint

to 3 ERPs
Move to the cloud service

based infrastructure
All operations on a single ERP
Fiori enabled
Global SAP S4
SAP S/4HANA
Suite on HANA
Central Finance
Cloud enabled
REGION 2 - JDE
GLOBAL SAP S4
REGION 3 - SAP ECC
REGION 4 SAP ECC
REGION 5 - SAP ECC - IS RETAIL
Starting smaller
No need to start with weight loss
Smaller
Prove out the other aspects of the solution
Operations/Infrastructure/Stability/Performance
HCP and cloud connectivity
The Fonterra S/4 instance - FSCM
Fun with S/4
2608'37.4"S
2802'33.2"E
!?!
MORE Fun with S/4

Integration
Plug-ins
Software components
Back end versions
S/4 is not just R/3

going faster
This is just the start of a
completely new journey
Toto, I dont
think we are on
R/3 anymore
Key Points to Take Home

This will change the business landscape in a similar way that the iPhone changed the way we
interact with each other
Resourcing will change dramatically
Existing capability doesnt map to the new paradigm
Functional Consultant => Back End Consultant, ABAPer needs to be complemented by front end skills
New Roles in the front end: Designer
There is a lot of Hype be cynical

The technology is an interesting challenge but the real fun is ahead
Real Time or Right Time Enterprise?
Costs for licence and the hardware are significant

Difficult to measure the value of its nicer to use
The benefit case is a challenge
andrew.faid@fonterra.com

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Real World S/4HANA

Mastering Business Analytics with SAP 2016

Mastering SAP Technologies 2016

Mastering SAP Technologies 2016

What Ill Cover

Mastering SAP Technologies 2016

Total Assets Employed

Dairy Ingredients Manufactured In

2.5 million metric tonnes*

Total Ingredients Sales Volumes

2.8 million metric tonnes*

HANA is a database and it is in-memory

S/4 is a fundamentally new code base to take

Mastering SAP Technologies 2016

Mastering Business Analytics with SAP 2016

Mastering SAP Technologies 2016

Currently size = disk and disk is very cheap (effectively

Mastering SAP Technologies 2016

Mastering Business Analytics with SAP 2016

Mastering SAP Technologies 2016

Make sure you have your database size under control

Mastering Business Analytics with SAP 2016

Mastering SAP Technologies 2016

Every Supermarket every day

Remember we are $20B

Mastering SAP Technologies 2016

Fiori why does UX matter?

Mastering SAP Technologies 2016

But what actually is Fiori?

Somewhere for those Apps to Run

Fiori Launch pad, On-prem or in the Cloud (HCP)

Some way to connect

Gateway Hub ODATA end point

Mastering Business Analytics with SAP 2016

Mastering SAP Technologies 2016

meanwhile(while we are thinking about Hana)

Mastering Business Analytics with SAP 2016

Mastering SAP Technologies 2016

Big ECCs = Big RAM = Big $$$

Mastering Business Analytics with SAP 2016

Mastering SAP Technologies 2016

Digital UX through Fiori

REGION 1 SAP ECC

Consolidate ERP footprint

Move to the cloud service

All operations on a single ERP

REGION 3 - SAP ECC

REGION 4 SAP ECC

REGION 5 - SAP ECC - IS RETAIL

Mastering Business Analytics with SAP 2016

Mastering SAP Technologies 2016

The Fonterra S/4 instance - FSCM

Fun with S/4

Mastering Business Analytics with SAP 2016

MORE Fun with S/4

Mastering Business Analytics with SAP 2016

Mastering SAP Technologies 2016

S/4 is not just R/3

Mastering SAP Technologies 2016

Key Points to Take Home

Existing capability doesnt map to the new paradigm

There is a lot of Hype be cynical

Real Time or Right Time Enterprise?

Costs for licence and the hardware are significant