SAP Transformation Navigator – Representative Transformation Guide

What is the SAP Transformation Navigator?

The SAP Transformation Navigator is a complimentary, self-service tool which instantly summarizes the specific products a company needs to take its business to the next level of disruptive innovation - using an SAP S/4 HANA- centric landscape.

What is this Transformation Guide?

The SAP Transformation Navigator generates a custom product map and transformation guide which summarize the model you developed in the tool.

This is a sample comprehensive transformation guide which represents a typical customer within this industry. As you explore this guide, imagine how your own company would prioritize business and value drivers and how your landscape might evolve. Designed to serve as your road map to transformation, this 150+ page document includes the following sections:

Business guide: Review information on where you want to take your business, where your priorities lie, the value drivers for success, and expected outcomes.

Technical guide: Understand how your landscape could evolve, what you need to plan for, and how your migration can happen.

Transformation guide: Find out what you are licensed for today and what you need to migrate or add; see customer stories relevant to your choices and get a sample timeline for making the transition to SAP S/4HANA.

What are my next steps?

Build your own custom product map from the start or by leveraging predefined industry templates, and generate transformation guide using the SAP Transformation Navigator.

Access the tool online at www..com/transformationnavigator and log in with your s-user id (note: access is part of your SAP maintenance subscription).

Contact [email protected] for more information. www.sap.com/contactsap

© 2020 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they should not be relied upon in making purchasing decisions.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in and other countries. All other product and service names mentioned are the trademarks of their respective companies. See http://www.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices. HEALTHCARE_TEMPLATE | SAP | PUBLIC 2020-06-24

SAP Transformation Navigator Your Business – Technical – Transformation Guide

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THE BEST RUN 2018 SAP SE or an SAP © Content

About This Document...... 3

1 Your Business Guide...... 5

2 Your Technical Guide...... 6

3 Your Transformation Guide...... 7

SAP Transformation Navigator 2 PUBLIC Content About This Document

● The SAP Transformation Navigator is our response to customers who asked for clear guidance for becoming a Live Business. ● The self-service aspect of the tool helps you go from seeing the need for digital transformation to starting the journey. ● Three guides explain everything there is to know about the SAP Transformation Navigator– Business Guide, Technical Guide, and Transformation Guide. ● The guides will help align all stakeholder groups in your company, and guide the way forward.

Clear Guidance In this digital economy, it’s winner takes all, and early movers are typically the winners. But, there’s a big difference between understanding the need to move into this area, and knowing how to make that move.

Don’t Worry – We’ve We’ll help you choose the best SAP products and solutions for your digital Got You Covered. transformation journey, and show you how those products can evolve. We’ll also walk you through integration scenarios, help you evaluate the costs involved, and reveal the business value to help you unlock your new digital IT landscape. We’re here to provide you with a clear path to an IT landscape that’s ready to capture digital opportunities quickly and efficiently. With access to three-year product timelines and expanded details under each milestone along the way, you’ll have all the information you need to embark on your digital transformation to become a Live Business.

SAP Transformation The application guide for SAP software is a self-service cloud tool that offers you Navigator clear guidance on navigating your SAP S/4HANA centric landscape. Through this tool, we recommend products, provide release information, show business value, discuss integration, offer services, and provide guidance on license transformation.

Set of Three Guides: To support all necessary stakeholders in your organization and to comprehensively Business Guide - frame the additional work needed, the SAP Transformation navigator generates a set Technical Guide – of three guides. A business guide, a technical guide, and a transformation guide. Each Transformation guide summarizes all information and decisions of the self-service tool, but enriches Guide them with relevant overall SAP information and with an overview of the follow-up work, that we've seen useful in many customer cases.

More specifically, the Business Guide covers:

● Industry breakthrough trends and strategic objectives. ● A summary of potential changes to your business' capability. ● Value driver aspirations and tracking possibilities. ● Way forward options for a more in-depth transformation case calculation.

In the Technical Guide, we cover the digital framework and reference landscape outlook, summarize your go-to guidance on currently used applications, and list advanced system and landscape analysis options.

The Transformation Guide starts with overall transformation scenarios and the SAP services involved, summarizes your transition heatmap and prioritization, and outlines the planning, timeline and commercials way forward.

SAP Transformation Navigator About This Document PUBLIC 3 As Easy as Possible, With the scope of the SAP Transformation Navigator and guides, we have tried to but Not Ignorant of make as much as possible a self-service experience. Nonetheless, we acknowledge The Necessary Detail that in a number of cases additional work is needed. That's why there's a chapter in all three guides that provides an overview of the next steps to take, which in our experience are either necessary or helpful. These tasks are best left to SAP IT specialists, and we'd be happy to help you get the work done.

We are looking forward to the discussion with you on your journey.

SAP Transformation Navigator 4 PUBLIC About This Document 1 Your Business Guide

Breakthrough Trends and Strategic Objectives ● Industry Challenges ● Strategic Priorities ● Strategic Value Drivers ● Transformation Reference Cases ● From Business Strategy to SAP Solutions

Business Capabilities and Value Aspiration ● Selected Capabilities Currently Used ● Selected Capabilities Required in Addition ● Capabilities on Recommended Products Compared to Current Products ● Value Driver Priority Selection and Aspiration ● Value Realization Tracking

Business Case, Realization Tracking, and Change Manage­ ● Build Your Transformation Case ment ○ Guided Business Case with SAP VLM ○ Consistent Framework for Transformation Project using SAP TCO Model Elements ● Value Realization ● Align IT and Business - Especially Regarding Functional Coverage ● Digital Innovations

SAP Transformation Navigator Your Business Guide PUBLIC 5 2 Your Technical Guide

Digital Framework and Reference Landscape Outlook ● The Roadmap to the Intelligent Enterprise ● Reference Product Map: Healthcare ● SAP Road Map Explorer ● Cloud Integration

Guidance on Currently Used Applications ● Guidance per Current Product ● Industry Reference Product Map Coverage ● Integration and Transition Guides

Advanced System and Landscape Analysis ● Scoping the Digital Core ● Advanced System Analysis ● Country and Language Coverage / Global Solutions Without Boundaries ● Consistent Framework for Transformation Project using SAP TCO Model Elements ● SAP HANA Enterprise Cloud: Your Accelerated Path to SAP S/4HANA Cloud

SAP Transformation Navigator 6 PUBLIC Your Technical Guide 3 Your Transformation Guide

Basic Transition Scenarios and License Policies ● Basic Transition Scenarios ● License and Subscription Policies

Transition Heatmap and Prioritization ● Transition Types and Services ● Transition Heatmap ● Licenses and Subscriptions for Your Target Product Map

Planning, Timeline and Commercials ● Conversion Versus Greenfield Decision ● Starting Point Determination and Selection of The Mi­ gration Path ● Proposal for The Next Steps – Leverage Complement­ ing Tools and Services ● Service Offerings by Partners

SAP Transformation Navigator Your Transformation Guide PUBLIC 7 Legal Disclaimer

The information in this document is not subject to your license agreement or any other service or subscription agreement with SAP. Previews or any related presentation and SAP's strategy and possible future developments, products, platforms, directions, and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information is not a commitment, promise or legal obligation to deliver any material, code, or functionality. This information is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in the document, except if such damages were caused by SAP´s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward- looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

SAP Transformation Navigator 8 PUBLIC Legal Disclaimer sap.com/ TransformationNavigator

to access the SAP Transformation Click HERE Navigator session of this document.

© 2018 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. The information contained herein may be changed without prior notice.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.

Please see https://www.sap.com/about/legal/trademark.html for additional trademark information and notices.

THE BEST RUN HEALTHCARE_TEMPLATE | SAP | PUBLIC 2020-06-24

Your Business Guide SAP Transformation Navigator

to access the SAP Transformation Click HERE Navigator session of this document. company. All rights reserved. affiliate

THE BEST RUN 2018 SAP SE or an SAP © Content

About This Document...... 3

1 Breakthrough Trends and Strategic Objectives...... 4 1.1 Healthcare-Strategic Industry Challenges...... 4 1.2 Healthcare-Strategic Priorities...... 5 1.3 Healthcare-Strategic Value Drivers...... 7 1.4 Transformation Reference Cases: Healthcare...... 8 1.5 From Business Strategy to SAP Solutions...... 9

2 Business Capabilities and Value Aspiration...... 11 2.1 Selected Capabilities Currently Used...... 11 2.2 Selected Capabilities Required in Addition...... 14 2.3 Capabilities of Recommended Products Compared to Current Products...... 14 2.4 Value Driver Priority Selection and Aspiration...... 21 2.5 Value Realization Tracking...... 23

3 Business Case, Realization Tracking, and Change Management...... 29 3.1 Build Your Transformation Case...... 29 Guided Business Case with SAP VLM...... 29 Consistent Framework for Transformation Project using SAP TCO Model Elements...... 30 3.2 Value Realization...... 32 3.3 Align IT and Business - Especially Regarding Functional Coverage...... 33 3.4 Digital Innovations ...... 34

Your Business Guide 2 PUBLIC Content About This Document

● The Business Guide aims to help you go from seeing the need for digital transformation to starting the journey towards that move. ● It summarizes the output of the SAP Transformation Navigator self-service tool regarding the business perspective. The Technical Guide and Transformation Guide are also available to comprehensively address all stakeholder needs. ● The Business Guide depicts the industry's breakthrough trends, the potential changes to your business' capability and your value driver aspirations. It also provides guidance on way forward options, business case, and realization tracking going forward.

In this digital economy, it’s winner take all, and early movers are typically the winners. But, there’s a big difference between understanding the need to move into this area and knowing how to make the move. With the SAP Transformation Navigator, we offer a comprehensive self-service tool to start the journey.

This business guide:

● Summarizes all information and decisions you have made in the SAP Transformation Navigator self-service tool. ● Enriches the information and decisions with relevant overall SAP information and with an overview of the follow-on work that we have seen to be useful in many customer cases.

The storyline starts from a strategic perspective, summarizes the need for action, and outlines the necessary follow-up work

Breakthrough Trends and Based on industry trends and the new set of technical possibilities, which Strategic Objectives for includes reference cases to help build the story for your company. Your Industry

Your Business Capability Based on the selected product map and recommendations, we can list the Changes and Realization available business capabilities and associate the relevant value drivers. Based Tracking on aspiration ranges from our implementation experience, a personal value aspiration is set and linked to realization tracking opportunities.

Change Management, Planning for the business impact and keeping track of the value realization can Business Case and be a challenge. Also, ensuring proper and timely engagement of key business Realization Tracking to representatives in designing the journey should be considered. In addition, Shape Your Way Forward corporate strategy-aligned digital innovation portfolio discussions early on in the transformation journey have proven to be key.

We are looking forward to the discussion with you on your journey.

Your Business Guide About This Document PUBLIC 3 1 Breakthrough Trends and Strategic Objectives

This chapter provides a short overview of the market challenges we see for the healthcare industry and its main strategic priorities, complemented by value drivers and customer references. To get a deep dive into the trends shaping the industry and the path to innovation, you can access the Healthcare Whitepaper.

1.1 Healthcare-Strategic Industry Challenges

The Healthcare industry is being reshaped by the following major trends.

Targeted analysis The value and importance of analysing and using patient data has increased significantly of patient data in past years – and demand for targeted analysis of patient data will expand in the future. In the experience economy, patients not only require transparent access to their healthcare data, they also expect to be informed about every step of their hospital visit at any time.

Gathering data on Healthcare providers need to gather data on patient experiences so they can patient continuously improve care delivery and patient-related processes. Enabling patients to experiences provide feedback will shape the future of health services. Additionally, to build and maintain patient loyalty, it is important to focus on patient out-comes far beyond the patients’ discharge. More than ever, healthcare providers are forced to act sustainably and be economically viable. The overall aim is to deliver state-of-the-art, best-quality healthcare services that are accessible to everyone – regardless of geographical location or social conditions. Supporting patients to engage with their healthcare providers from anywhere at any time by using mobile devices and applications will lift the interaction in the healthcare sector to the next level.

Healthcare These continuous changes require quick and ongoing adaptations by healthcare providers need to providers. Implementing transparent, end-to-end business processes inspired by patient- become focused requirements will allow healthcare providers to become intelligent enterprises. intelligent Leaders will be motivated to re-evaluate processes and structures to meet their strategic enterprises priorities, including:

● Improving the patient experience ● Subscribing to patient outcomes ● Operating smart and efficiently ● Enabling data-driven decisions ● Empowering the workforce

Value-based, By 2025, we at SAP expect the healthcare industry to be characterized by value-based patient-centered care that improves patient outcomes and lowers costs for all healthcare stakeholders. care that Healthcare models will evolve from providing care in hospitals and doctors’ offices to

Your Business Guide 4 PUBLIC Breakthrough Trends and Strategic Objectives improves patient offering care in patients’ homes. As people become more aware of their own health and outcomes and how to influence it, healthcare providers will continue to focus on prevention programs. lowers costs The balance of power in healthcare will shift from providers to consumers and to those companies who can engage the consumer. Thus, the most important trigger for digital transformation is the healthcare consumer.

1.2 Healthcare-Strategic Priorities

We have identified the following strategic priorities for Healthcare companies that require new capabilities along the value chain.

Improve the patient By 2025, healthcare will have turned into a competitive, consumer-focused business. In experience the experience economy, patients will transfer their consumer expectations into healthcare and new, non-traditional players with a strong customer-focused mind-set are pushing into the healthcare space. Providing a positive, seamless patient experience across digital and physical interaction will be a key differentiator for healthcare providers. That includes applying technologies that are designed with an understanding of patients being among the main users of the solutions and that are aimed at making patient-provider interactions more convenient for the patient.

Subscribe to Patients will be able to see value from the options they have for their specific health patient outcomes issues, based on key performance indicators and assessments of other patients facing similar circumstances. Future self-management options that empower patients to affect the result of the treatment will positively influence the patient outcomes. Pure statistics are not meaningful in this context. The demonstrated outcomes must be specifically relevant to individual patients and their particular context.

Your Business Guide Breakthrough Trends and Strategic Objectives PUBLIC 5 Operate smart and Providers are under constant cost pressures and resource constraints. In upcoming efficiently years, the next-generation digital core will be the foundation for a smarter business – leveraging IoT and machine learning for higher automation and offering cockpits with embedded analytics, prediction, and simulation to ensure a more agile nervous system for the entire organization. With that in place, healthcare providers can excel in terms of operational efficiency – for example, by reducing variations in clinical care to standardize best practices, by using resources and supplies more effectively, or through more-precise claims.

Enable data-driven The most dramatic change in the digital economy will be driven by hyper connectivity decisions and Big Data science. Electronic medical records, data from apps, wearables, mobile devices, sensors, and clinical innovations will create a vast zettabyte of data and an ocean of information. By 2025, the healthcare value chain will be changed massively through the ability to monitor patients, collect health and outcome information from structured as well as diverse raw and unorganized sources, analyse information in real time to react early, and use predictions to act beforehand. Big Data technologies, analytics, artificial intelligence, and machine learning will help unlock valuable insights in data lakes and enable an insight-driven health-care business.

Your Business Guide 6 PUBLIC Breakthrough Trends and Strategic Objectives Empower the Complexity is the enemy of workforce empowerment. It can drive up costs and slow workforce down progress. New digital tools enable the workforce of the future to re-evaluate how they work and help them get the most out of their professional training – freeing them from paperwork to focus on patient care. The aim is to provide clinical staff with mobile devices to allow faster communication, just-in-time delivery of information and results, and flexibility in their work environment.

1.3 Healthcare-Strategic Value Drivers

Find here a list of strategic KPIs – so-called Value Drivers – that are relevant per Strategic Priority in your industry. If available, improvements achieved by other SAP customers are specified.

Improve the patient experience ● 5‒7% improvement in patient satisfaction ● 3‒4% improvement in care efficiency

Subscribe to patient outcomes ● 5‒7% improvement in patient satisfaction

Your Business Guide Breakthrough Trends and Strategic Objectives PUBLIC 7 ● 8‒10% improvement in patient care compliance

Operate smart and efficiently ● 2‒3% reduction in revenue loss due to insurance claim denials ● 8‒10% improvement in admin and billing FTE productivity ● 3‒5% reduction in service and support cost

Enable data-driven decisions ● 7‒8% improvement in quality of care ● 6‒7% reduction in IT spend ● 15‒20% reduction in data integration cost

Empower the workforce ● 25‒30% reduction in employee manual transaction effort ● 15‒20% increase in employee engagement

Most SAP products and capabilities have one or several value drivers assigned, indicating their contribution to that specific KPI – in chapter 2.4, Value Driver Priority Selection and Aspiration [page 21], you can review your current selection of value drivers based on the products you selected in SAP Transformation Navigator.

1.4 Transformation Reference Cases: Healthcare

Digital strategies are disruptive and changing the rules for Healthcare providers

Parkland Health & Hospital System is optimizing emergency room management, workflow, and patient care with a near real-time dashboard that provides situational awareness of the total number of recent arrivals, the number of people in the waiting room, the volume in each pod, and how many people are pending discharge. The dashboard is displayed on big-screen televisions throughout the ER, giving staff 24x7 live data.

HarrisLogic LLC is consolidating and transforming behavioral health data into lifesaving analytics, demonstrating that highly sensitive data, such as mental health records, can be safely anonymized while still producing actionable data insights.

Through modernizing its health IT with i.s.h.med, Ordensklinikum Linz Elisabethinen is Austria’s first hospital to achieve the second highest stage of the HIMSS EMR Adoption Models (HIMSS EMRAM).

The Urological Clinic of Heidelberg University Hospital is co-developing a prototype for software and business innovation in the operation room, together with DKFZ and SAP, Healthineers, KARL STORZ and mbits. This intelligent software and business platform consolidate process- and patient data of multiple sources in the operation environment. The SAP Cloud based platform is open and expandable and allows the integration of distinct medical devices and apps.

Charité in , one of Europe’s largest university hospitals built an integrated platform for digital patient records, using SAP HANA extended application services (XSA).

Your Business Guide 8 PUBLIC Breakthrough Trends and Strategic Objectives 1.5 From Business Strategy to SAP Solutions

Value Map Example (Business Priorities and Solutions)

SAP links industry strategies to supporting software solutions via Value Maps.

Access the up-to-date Healthcare Value Map with all details here.

At the top level, the Value Map reflects strategies specific to the industry as Business Priorities.

Business Priorities can be either:

● essential for value creation and differentiation in the industry (Core Industry Priorities) or ● required in addition for running the business (Cross Enterprise Supporting Priorities) or ● outlining related Business and Technology needs (Business Technology Platform).

Each Business Priority is broken down into Solutions. Every Solution addresses a specific business scope and is delivered as a combination of Capabilities that work together. Capabilities represent the most granular level. They describe specific business needs and links them to specific SAP software that fulfills them.

There are cases where SAP can address the same business need with different software, e.g. with different deployment modes, levels of sophistication or industry specificity. Industry Value Maps always represent SAP's recommendation of specific software, related Capabilities and Solutions that are typically the best choice for a "best run" business in an industry. Therefore, a Value Map is also an ideal starting point for assessing and

Your Business Guide Breakthrough Trends and Strategic Objectives PUBLIC 9 enabling new business strategies by leveraging SAP's industry knowledge and software implementation expertise.

In SAP Transformation Navigator you can browse the value maps, select specific solutions, and view related product recommendations via the Add Capability feature.

Your Business Guide 10 PUBLIC Breakthrough Trends and Strategic Objectives 2 Business Capabilities and Value Aspiration

2.1 Selected Capabilities Currently Used

Transformation of your current landscape: This table shows the capabilities that you have selected for your currently used products, grouped by line of business or line of technology and capability area. The list also shows the related recommended products and, if applicable, the validity date of the recommendation. The table is empty if your product map does not contain current products that require a selection of capabilities, or if you have not made any selection or decision yet. Such selection of capabilities is only available and required for bigger, complex products like SAP ERP, SAP CRM, and some smaller industry-specific products.

Current Line of Busi­ Recom­ Recom­ Product se­ ness/Tech­ Business Capability Deployment mended Ca­ mended Available as lected nology Area used Preference pability Products of

SAP Cus­ Healthcare Consumer Caregiver Co­ On Premise Caregiver Co­ ● SAP now tomer Rela­ Management Experience ordination ordination Cus­ tionship Man­ (CRM) tomer agement Relation­ ship Manage­ ment

SAP ERP Finance Accounting Financial Ac­ On Premise Financial Ac­ ● SAP S/ now and Financial counting counting with 4HANA Close intelligent ● SAP In­ GR/IR Ac­ voice count Recon­ and ciliation (S/4 Goods OP, Leo­ Receipt nardo) Reconci­ liation

SAP ERP Finance Financial Overhead On Premise Overhead ● SAP S/ now Planning and Cost Man­ Cost Man­ 4HANA Analysis agement agement (S/4 OP)

SAP ERP Finance Financial Profitability On Premise Profitability ● SAP S/ now Planning and Analysis Analysis (S/4 4HANA Analysis OP)

Your Business Guide Business Capabilities and Value Aspiration PUBLIC 11 Current Line of Busi­ Recom­ Recom­ Product se­ ness/Tech­ Business Capability Deployment mended Ca­ mended Available as lected nology Area used Preference pability Products of

SAP ERP Finance Order to Accounts Re­ On Premise Accounts Re­ ● SAP S/ now Cash ceivable ceivable with 4HANA Automated ● SAP Line Item Cash Ap­ Matching plication (S/4 OP, Leo­ nardo)

SAP ERP Finance Order to Contract Ac­ On Premise Contract Ac­ ● SAP S/ now Cash counting counting (S/4 4HANA OP)

SAP ERP Finance Procure to Accounts On Premise Accounts ● SAP S/ now Pay Payable Payable (S/4 4HANA OP)

SAP ERP Healthcare Patient Ad­ Healthcare On Premise Healthcare ● SAP ERP now Management ministration Coding Coding (ERP) and Billing

SAP ERP Healthcare Patient Ad­ Patient Ac­ On Premise Patient Ac­ ● SAP ERP now Management ministration cess cess (ERP) and Billing

SAP ERP Healthcare Patient Ad­ Patient Billing On Premise Patient Billing ● SAP ERP now Management ministration (ERP) and Billing

SAP ERP Human Re­ Core HR and HR Adminis­ Cloud People and ● SAP now sources Payroll tration Transactions Success­ (SuccessFac­ Factors tors) Em­ ployee Central

SAP ERP Human Re­ Core HR and Payroll Cloud Payroll Proc­ ● SAP now sources Payroll essing (Suc­ Success­ cessFactors) Factors Em­ ployee Central ● SAP Success­ Factors Em­ ployee Central Payroll

SAP ERP Sourcing and Invoice Man­ Accounts On Premise Accounts ● SAP S/ now Procurement agement Payable Payable (S/4 4HANA OP)

Your Business Guide 12 PUBLIC Business Capabilities and Value Aspiration Current Line of Busi­ Recom­ Recom­ Product se­ ness/Tech­ Business Capability Deployment mended Ca­ mended Available as lected nology Area used Preference pability Products of

SAP Supplier Sourcing and Catalog Man­ Catalog Man­ Cloud Catalog Man­ ● SAP now Relationship Procurement agement agement agement Ariba Management (Ariba) Procure­ ment, cloud edition

SAP Supplier Sourcing and Collaborative Purchase Or­ Cloud Purchase Or­ ● SAP S/ now Relationship Procurement Network der Collabo­ der Collabo­ 4HANA Management ration ration (S/4 Cloud CLD)

SAP Supplier Sourcing and Collaborative Purchase Or­ Cloud Purchase Or­ ● Ariba 2020 Q3 Relationship Procurement Network der Collabo­ der Collabo­ Network Management ration ration (Ariba)

SAP Supplier Sourcing and Contract Purchase Cloud Purchase ● SAP S/ now Relationship Procurement Management Contract Contract 4HANA Management Management Management Cloud (S/4 CLD, Leonardo)

SAP Supplier Sourcing and Operational Central Cloud Central ● SAP S/ now Relationship Procurement Procurement Requisition­ Requisition­ 4HANA Management ing ing (S/4 CLD) Cloud

SAP Supplier Sourcing and Operational Guided Buy­ Cloud Guided Buy­ ● SAP now Relationship Procurement Procurement ing ing (Ariba) Ariba Management Procure­ ment, cloud edition

SAP Supplier Sourcing and Operational Purchase Cloud Purchase ● SAP S/ now Relationship Procurement Procurement Contract Contract 4HANA Management Management Management Cloud (S/4 CLD, Leonardo)

SAP Supplier Sourcing and Operational Purchase Or­ Cloud Purchase Or­ ● SAP S/ now Relationship Procurement Procurement der Collabo­ der Collabo­ 4HANA Management ration ration (S/4 Cloud CLD)

SAP Supplier Sourcing and Operational Purchase Or­ Cloud Purchase Or­ ● Ariba 2020 Q3 Relationship Procurement Procurement der Collabo­ der Collabo­ Network Management ration ration (Ariba)

SAP Supplier Sourcing and Operational Purchase Or­ Cloud Purchase Or­ ● SAP S/ now Relationship Procurement Procurement der Process­ der Process­ 4HANA Management ing ing (S/4 CLD) Cloud

SAP Supplier Sourcing and Operational Self-Service Cloud Self-Service ● SAP S/ now Relationship Procurement Procurement Requisition­ Requisition­ 4HANA Management ing ing (S/4 CLD) Cloud

Your Business Guide Business Capabilities and Value Aspiration PUBLIC 13 Current Line of Busi­ Recom­ Recom­ Product se­ ness/Tech­ Business Capability Deployment mended Ca­ mended Available as lected nology Area used Preference pability Products of

SAP Supplier Sourcing and Sourcing Source As­ Cloud Source As­ ● SAP S/ now Relationship Procurement signment signment 4HANA Management (S/4 CLD) Cloud

SAP Supplier Sourcing and Sourcing Sourcing Cloud Strategic ● Ariba now Relationship Procurement Sourcing Sourc­ Management (Ariba) ing, cloud edition

SAP Supply Sourcing and Business Advanced Cloud Advanced ● SAP S/ now Chain Man­ Procurement Planning Available to Available to 4HANA agement Promise Promise (S/4 Cloud CLD)

SAP Supply Supply Chain Logistics Advanced Cloud Advanced ● SAP S/ now Chain Man­ Available to Available to 4HANA agement Promise Promise (S/4 Cloud CLD)

2.2 Selected Capabilities Required in Addition

Transformation of your business: This table shows the capabilities that you have selected using the Add Capability feature to cover further business processes, grouped by business area (for capabilities selected via the catalog) and solutions (for capabilities indirectly selected via value map). The list also shows all recommended products and, if applicable, the validity date of the recommendation. The table is empty if you have not selected any additional capabilities.

Line of Deploy­ Business/ ment Recom­ Technol­ Business Prefer­ mended Recommended Prod­ Available Industry ogy Area Solution Capability ence Capability ucts as of

No data available.

2.3 Capabilities of Recommended Products Compared to Current Products

This table shows the business capabilities that are currently available in your product line, and the additional business capabilities gained by the recommended products. The table also shows the related products.

Your Business Guide 14 PUBLIC Business Capabilities and Value Aspiration The table is empty if the recommended products and current products cover the same business capabilities.

Availa­ ble in current Line of Busi­ Gained prod­ ness/Technol­ Capa­ ucts ogy Capability Area Capability bility only Products

Analytics Augmented Busi­ Analytics API extensions X ● SAP Analytics Cloud ness Intelligence

Analytics Augmented Busi­ Analytics Connectivity X ● SAP Analytics Cloud ness Intelligence

Analytics Augmented Busi­ Analytics Data Modeling X ● SAP Analytics Cloud ness Intelligence

Analytics Augmented Busi­ Analytics Design X ● SAP Analytics Cloud ness Intelligence

Analytics Augmented Busi­ Analytics Platform and Se­ X ● SAP Analytics Cloud ness Intelligence curity

Analytics Augmented Busi­ Analytics Tool for Business X ● SAP S/4HANA ness Intelligence and Key Users ● SAP S/4HANA Cloud

Analytics Augmented Busi­ Augmented Analytics X ● SAP Analytics Cloud ness Intelligence

Analytics Augmented Busi­ Dashboard and Story De­ X ● SAP Analytics Cloud ness Intelligence sign

Analytics Augmented Busi­ Data Discovery X ● SAP Analytics Cloud ness Intelligence

Analytics Augmented Busi­ Enterprise Reporting X ● SAP Analytics Cloud ness Intelligence

Analytics Augmented Busi­ Executive Insights X ● SAP Analytics Cloud ness Intelligence

Analytics Augmented Busi­ Mobile Analytics X ● SAP Analytics Cloud ness Intelligence

Analytics Collaborative Performance and Manage­ X ● SAP Analytics Cloud Planning ment Reporting

Analytics Data Warehous­ Enterprise Data Ware­ X ● SAP BW/4HANA ing house ● SAP HANA, platform edition

Application De­ Digital and User Enterprise Search X ● SAP S/4HANA velopment and Experience ● SAP S/4HANA Cloud Integration

Application De­ Enterprise Exten­ Extensibility X ● SAP S/4HANA velopment and sions ● SAP S/4HANA Cloud Integration

Application De­ Process Manage­ Responsibility Manage­ X ● SAP S/4HANA velopment and ment ment ● SAP S/4HANA Cloud Integration

Your Business Guide Business Capabilities and Value Aspiration PUBLIC 15 Availa­ ble in current Line of Busi­ Gained prod­ ness/Technol­ Capa­ ucts ogy Capability Area Capability bility only Products

Application De­ Process Manage­ Situation Handling X ● SAP S/4HANA velopment and ment ● SAP S/4HANA Cloud Integration

Asset Manage­ Asset Informa­ Management of Change X ● SAP S/4HANA ment tion and Change Management

Asset Manage­ Asset Operations Multiresource Scheduling X ● SAP S/4HANA Cloud ment and Maintenance

Asset Manage­ Asset Operations Portfolio Management X ● SAP S/4HANA ment and Maintenance ● SAP S/4HANA Cloud

Asset Manage­ Asset Planning Project Management X ● SAP S/4HANA ment and Design ● SAP S/4HANA Cloud

Database and Data Governance Master Data Maintenance X ● SAP S/4HANA Data Manage­ ● SAP S/4HANA Cloud ment

Database and Data Governance Master Data Management X ● SAP S/4HANA Data Manage­ ● SAP S/4HANA Cloud ment

Database and Data Orchestra­ Data Integration for S/ X ● SAP S/4HANA Data Manage­ tion 4HANA ● SAP S/4HANA Cloud ment

Database and Data Quality Data Quality for Master X ● SAP S/4HANA Data Manage­ Data ● SAP S/4HANA Cloud ment

Finance Accounting and Advanced Compliance Re­ X ● SAP S/4HANA Financial Close porting ● SAP S/4HANA Cloud

Finance Accounting and Advanced Financial Clos­ X ● SAP S/4HANA Cloud Financial Close ing

Finance Contract Man­ Legal Content Manage­ X ● SAP S/4HANA agement ment ● SAP S/4HANA Cloud

Finance Enterprise Risk International Trade Man­ X ● SAP S/4HANA and Compliance agement ● SAP S/4HANA Cloud

Finance Financial Plan­ Collaborative Enterprise X ● SAP Analytics Cloud ning and Analysis Planning

Finance Financial Plan­ Management Reporting X ● SAP Analytics Cloud ning and Analysis

Finance Financial Plan­ Profitability Modeling and X ● SAP Analytics Cloud ning and Analysis Optimization

Your Business Guide 16 PUBLIC Business Capabilities and Value Aspiration Availa­ ble in current Line of Busi­ Gained prod­ ness/Technol­ Capa­ ucts ogy Capability Area Capability bility only Products

Finance Indirect Tax Man­ Indirect Tax X ● SAP S/4HANA Cloud agement

Finance Order to Cash Settlement Management X ● SAP S/4HANA

Finance Procure to Pay Financial Supply Chain X ● SAP S/4HANA

Finance Real Estate Man­ Energy and Safety X ● SAP S/4HANA agement

Finance Real Estate Man­ Investment and Construc­ X ● SAP S/4HANA agement tion

Finance Real Estate Man­ Leasing Accounting Com­ X ● SAP S/4HANA agement pliance ● SAP S/4HANA Cloud

Finance Real Estate Man­ Portfolio and Location X ● SAP S/4HANA agement Management ● SAP S/4HANA Cloud

Finance Real Estate Man­ Space Management X ● SAP S/4HANA agement ● SAP S/4HANA Cloud

Finance Security and Access Governance X ● SAP Access Control for SAP S/ Data Protection 4HANA

Finance Treasury Man­ Cash and Liquidity Man­ X ● SAP S/4HANA agement agement ● SAP S/4HANA Cloud

Finance Treasury Man­ Cash Management X ● SAP S/4HANA agement

Finance Treasury Man­ Debt and Investment Man­ X ● SAP S/4HANA agement agement ● SAP S/4HANA Cloud

Finance Treasury Man­ Financial Risk Manage­ X ● SAP S/4HANA agement ment ● SAP S/4HANA Cloud

Healthcare Data Health Data Ana­ Information Visualization X ● SAP Analytics Cloud Insights lytics

Human Resour­ People Analytics Collaborative People Plan­ X ● SAP Analytics Cloud ces ning ● SAP S/4HANA

Human Resour­ Talent Manage­ Learning X ● SAP S/4HANA ces ment

Human Resour­ Time and Attend­ Absence Management X ● SAP S/4HANA ces ance Manage­ ● SAP SuccessFactors Employee ment Central

Your Business Guide Business Capabilities and Value Aspiration PUBLIC 17 Availa­ ble in current Line of Busi­ Gained prod­ ness/Technol­ Capa­ ucts ogy Capability Area Capability bility only Products

Human Resour­ Time and Attend­ Time Sheet Recording and X ● SAP S/4HANA ces ance Manage­ Management ● SAP S/4HANA Cloud ment ● SAP SuccessFactors Employee Central

IT Management Application Life­ System Administration X ● SAP S/4HANA cycle Manage­ ment

IT Management IT Infrastructure Output Management X ● SAP S/4HANA Management ● SAP S/4HANA Cloud

Marketing Commerce Mar­ Marketing Recommenda­ X ● SAP S/4HANA Cloud keting tions

Marketing Commerce Mar­ Remarketing X ● SAP S/4HANA Cloud keting

Marketing Lead and Ac­ Account-Based Marketing X ● SAP S/4HANA Cloud count-Based Marketing

Marketing Lead and Ac­ Marketing Lead Manage­ X ● SAP S/4HANA Cloud count-Based ment Marketing

Marketing Marketing Ana­ Insights and Performance X ● SAP Analytics Cloud lytics Management ● SAP S/4HANA Cloud

Marketing Marketing Ana­ Sentiment and Interest X ● SAP S/4HANA Cloud lytics Analysis

Marketing Marketing Plan­ Marketing Planning and X ● SAP S/4HANA Cloud ning and Per­ Budgeting formance

Marketing Real-Time Audi­ Marketing Profile X ● SAP S/4HANA Cloud ence Profiling

Marketing Real-Time Audi­ Real-Time Predictions and X ● SAP S/4HANA Cloud ence Profiling Scoring

Marketing Segments, Cam­ Cross-Channel Engage­ X ● SAP S/4HANA Cloud paigns, and Jour­ ment neys

Marketing Segments, Cam­ Social Campaigns and En­ X ● SAP S/4HANA Cloud paigns, and Jour­ gagement neys

Sourcing and Business Plan­ Demand Planning X ● SAP Supply Chain Management Procurement ning

Your Business Guide 18 PUBLIC Business Capabilities and Value Aspiration Availa­ ble in current Line of Busi­ Gained prod­ ness/Technol­ Capa­ ucts ogy Capability Area Capability bility only Products

Sourcing and Business Plan­ Demand Planning for Con­ X ● SAP Supply Chain Management Procurement ning figurable Products

Sourcing and Business Plan­ Manufacturing Supply Net­ X ● SAP Supply Chain Management Procurement ning work Planning

Sourcing and Catalog Manage­ Catalog Management X ● SAP Ariba Procurement, cloud Procurement ment edition

Sourcing and Collaborative Purchase Order Collabora­ X ● SAP S/4HANA Procurement Network tion ● SAP S/4HANA Cloud

Sourcing and Contract Man­ Contract Authoring, Exe­ X ● Ariba Sourcing, cloud edition Procurement agement cution, and Repository

Sourcing and Invoice Manage­ Invoice Collaboration X ● SAP S/4HANA Procurement ment ● SAP S/4HANA Cloud

Sourcing and Invoice Manage­ Invoice Digitization X ● SAP Ariba Procurement, cloud Procurement ment edition

Sourcing and Manufacturing Demand-Driven Replenish­ X ● SAP S/4HANA Procurement Planning and ment ● SAP S/4HANA Cloud Scheduling

Sourcing and Manufacturing Manufacturing Collabora­ X ● SAP S/4HANA Procurement Planning and tion Scheduling

Sourcing and Operational Pro­ Central Invoice Monitoring X ● SAP S/4HANA Cloud Procurement curement

Sourcing and Operational Pro­ Central Purchase Contract X ● SAP S/4HANA Procurement curement Processing ● SAP S/4HANA Cloud

Sourcing and Operational Pro­ Central Purchasing X ● SAP S/4HANA Procurement curement ● SAP S/4HANA Cloud

Sourcing and Operational Pro­ Central Purchasing Analyt­ X ● SAP S/4HANA Procurement curement ics ● SAP S/4HANA Cloud

Sourcing and Operational Pro­ Central Requisitioning X ● SAP S/4HANA Procurement curement ● SAP S/4HANA Cloud

Sourcing and Operational Pro­ Central Sourcing X ● SAP S/4HANA Procurement curement ● SAP S/4HANA Cloud

Sourcing and Operational Pro­ Contract Compliance X ● SAP Ariba Procurement, cloud Procurement curement edition

Your Business Guide Business Capabilities and Value Aspiration PUBLIC 19 Availa­ ble in current Line of Busi­ Gained prod­ ness/Technol­ Capa­ ucts ogy Capability Area Capability bility only Products

Sourcing and Operational Pro­ End-User Sourcing, Con­ X ● SAP Ariba Procurement, cloud Procurement curement tract, and Supplier Risk edition Requests

Sourcing and Operational Pro­ Inventory Search and Res­ X ● SAP Ariba Procurement, cloud Procurement curement ervation edition

Sourcing and Operational Pro­ Procurement Operations X ● SAP Ariba Procurement, cloud Procurement curement edition

Sourcing and Operational Pro­ Receiving X ● SAP Ariba Procurement, cloud Procurement curement edition

Sourcing and Operational Pro­ Self-Service Requisitioning X ● SAP Ariba Procurement, cloud Procurement curement edition ● SAP S/4HANA ● SAP S/4HANA Cloud

Sourcing and Operational Pro­ Spot Buy Marketplace X ● SAP Ariba Procurement, cloud Procurement curement edition

Sourcing and Services Pro­ Services Contract Compli­ X ● SAP Ariba Procurement, cloud Procurement curement ance edition

Sourcing and Services Pro­ Services Contract Man­ X ● Ariba Sourcing, cloud edition Procurement curement agement

Sourcing and Services Pro­ Services Requisitioning X ● SAP Ariba Procurement, cloud Procurement curement and Service Orders edition

Sourcing and Services Pro­ Services Sourcing X ● Ariba Sourcing, cloud edition Procurement curement

Sourcing and Services Pro­ SOW Projects and Services X ● SAP Ariba Procurement, cloud Procurement curement Management edition

Sourcing and Sourcing BOM, Workflow, and Syn­ X ● Ariba Sourcing, cloud edition Procurement dication

Sourcing and Sourcing Category Management, X ● Ariba Sourcing, cloud edition Procurement Projects, Workflow

Sourcing and Sourcing Spend Classification and X ● Ariba Sourcing, cloud edition Procurement Enrichment

Sourcing and Sourcing Spot Quotes X ● Ariba Sourcing, cloud edition Procurement

Sourcing and Spend Analysis Spend Reporting X ● SAP Analytics Cloud Procurement ● SAP S/4HANA ● SAP S/4HANA Cloud

Your Business Guide 20 PUBLIC Business Capabilities and Value Aspiration Availa­ ble in current Line of Busi­ Gained prod­ ness/Technol­ Capa­ ucts ogy Capability Area Capability bility only Products

Sourcing and Supplier Man­ Classification and Seg­ X ● Ariba Sourcing, cloud edition Procurement agement mentation ● SAP S/4HANA ● SAP S/4HANA Cloud

Sourcing and Supplier Man­ Supplier Evaluation X ● Ariba Sourcing, cloud edition Procurement agement ● SAP S/4HANA ● SAP S/4HANA Cloud

Sourcing and Supplier Man­ Supplier Information Man­ X ● Ariba Sourcing, cloud edition Procurement agement agement

Sourcing and Supplier Man­ Supplier Onboarding and X ● Ariba Sourcing, cloud edition Procurement agement Qualification

Sourcing and Supplier Man­ Supplier Performance X ● Ariba Sourcing, cloud edition Procurement agement Management

Sourcing and Supplier Man­ Third-Party Risk and Data X ● Ariba Sourcing, cloud edition Procurement agement Augmentation

Supply Chain Logistics Capable to Promise X ● SAP Supply Chain Management

Supply Chain Logistics Dock Appointment Sched­ X ● SAP S/4HANA uling

Supply Chain Logistics Explosives Warehouse X ● SAP S/4HANA Management

Supply Chain Logistics Extended Warehouse Man­ X ● SAP S/4HANA agement

Supply Chain Logistics Physical Inventory X ● SAP S/4HANA ● SAP S/4HANA Cloud

Supply Chain Logistics Returnable Packaging Lo­ X ● SAP S/4HANA gistics

2.4 Value Driver Priority Selection and Aspiration

This table shows the value drivers you have selected including the aspiration range and your aspiration.

The table is empty if you have not yet prioritized the value drivers. All value drivers are listed in the appendix.

Aspiration Line of Business/Technology Value Driver Range Your Aspiration

Analytics Increase employee productivity 24.0 - 100.0 62.0

Your Business Guide Business Capabilities and Value Aspiration PUBLIC 21 Aspiration Line of Business/Technology Value Driver Range Your Aspiration

Application Development and In­ Increase employee productivity 24.0 - 100.0 62.0 tegration

Application Development and In­ Increase HR FTE productivity 35.0 - 100.0 35.0 tegration

Application Development and In­ Reduce HR cost per employee 18.0 - 79.0 18.0 tegration

Asset Management Improve on-time delivery performance 1.0 - 16.0 1.0

Database and Data Management Increase revenue growth 19.0 - 100.0 60.0

Database and Data Management Reduce procurement function costs 27.0 - 100.0 27.0

Finance Increase employee productivity 24.0 - 100.0 62.0

Finance Reduce audit costs 0.0 - 0.0 20.0

Finance Reduce days sales outstanding (one - time benefit) 24.0 - 48.0 48.0

Finance Reduce finance cost 19.0 - 80.0 50.0

Finance Reduce procurement function costs 27.0 - 100.0 27.0

Health Care and Cure Improve quality of care 0.0 - 0.0 30.0

Healthcare Data Insights Increase revenue growth 19.0 - 100.0 60.0

Healthcare Management Improve profitability 11.0 - 60.0 36.0

Healthcare Management Increase employee productivity 24.0 - 100.0 62.0

Healthcare Management Increase revenue growth 19.0 - 100.0 60.0

Human Resources Increase HR administrator efficiency due to intelli­ 0.0 - 0.0 10.0 gent services

Human Resources Increase HR FTE productivity 35.0 - 100.0 35.0

Human Resources Reduce HR cost per employee 18.0 - 79.0 18.0

Human Resources Reduce HR technology cost 26.0 - 89.0 58.0

IT Management Increase employee productivity 24.0 - 100.0 62.0

Marketing Increase customer satisfaction 18.0 - 100.0 59.0

Marketing Increase revenue growth 19.0 - 100.0 60.0

Sourcing and Procurement Improve on-time delivery performance 1.0 - 16.0 1.0

Sourcing and Procurement Improve profitability 11.0 - 60.0 36.0

Sourcing and Procurement Increase employee productivity 24.0 - 100.0 62.0

Sourcing and Procurement Reduce days in inventory 8.0 - 20.0 20.0

Sourcing and Procurement Reduce finance cost 19.0 - 80.0 50.0

Sourcing and Procurement Reduce procurement function costs 27.0 - 100.0 27.0

Supply Chain Improve on-time delivery performance 1.0 - 16.0 1.0

Supply Chain Reduce days in inventory 8.0 - 20.0 20.0

Your Business Guide 22 PUBLIC Business Capabilities and Value Aspiration 2.5 Value Realization Tracking

SAP Solution Manager Business Process Analytics helps realizing the potential of the value drivers by linking value drivers to operational KPIs measured in the SAP systems.

The following table shows the Business Process Analytics KPIs for your selected value drivers by line of business or by line of technology. In addition, the table also displays the number of solution capabilities and number of recommended products contributing to the value driver.

The table is empty if you have not yet prioritized the value drivers. All value drivers are listed in the appendix.

Number Number of rec­ of Solu­ om­ tion Ca­ mended Line of Business/ pabili­ Prod­ Technology Value Driver ties ucts Business Process Analytics KPIs

Sourcing and Pro­ Reduce finance cost 3 3 ● Automation rate: Customer payments [%] curement ● Automation rate: FI-GL clearing [%] ● Automation rate: Vendor payments [%] ● Changes in FI documents ● Electronic bank statement items not com­ pletely posted ● ...

Finance Reduce finance cost 63 8 ● Automation rate: Customer payments [%] ● Automation rate: FI-GL clearing [%] ● Automation rate: Vendor payments [%] ● Changes in FI documents ● Electronic bank statement items not com­ pletely posted ● ...

Sourcing and Pro­ Reduce procurement func­ 48 5 ● Automation rate: Purchase Orders curement tion costs ● Automation rate: Purchase Requisitions ● Automation rate: Purchase order items ● Changes in purchase orders ● Changes in purchase requisitions ● ...

Database and Data Reduce procurement func­ 5 2 ● Automation rate: Purchase Orders Management tion costs ● Automation rate: Purchase Requisitions ● Automation rate: Purchase order items ● Changes in purchase orders ● Changes in purchase requisitions ● ...

Your Business Guide Business Capabilities and Value Aspiration PUBLIC 23 Number Number of rec­ of Solu­ om­ tion Ca­ mended Line of Business/ pabili­ Prod­ Technology Value Driver ties ucts Business Process Analytics KPIs

Finance Reduce procurement func­ 4 3 ● Automation rate: Purchase Orders tion costs ● Automation rate: Purchase Requisitions ● Automation rate: Purchase order items ● Changes in purchase orders ● Changes in purchase requisitions ● ...

Finance Reduce audit costs 42 5 ● % of sales invoices not posted to accounting ● Automation rate: Customer payments [%] ● Automation rate: FI-GL clearing [%] ● Automation rate: Outbound deliveries ● Automation rate: Purchase Orders ● ...

Sourcing and Pro­ Improve on-time delivery 14 3 ● Exceptions during delivery due processing curement performance (sales) ● Missing fields in incomplete sales document items ● Open and rescheduled sales schedule line items ● Outbound deliveries overdue for GI ● Overdue sales schedule line items ● ...

Supply Chain Improve on-time delivery 22 3 ● Exceptions during delivery due processing performance (sales) ● Missing fields in incomplete sales document items ● Open and rescheduled sales schedule line items ● Outbound deliveries overdue for GI ● Overdue sales schedule line items ● ...

Asset Manage­ Improve on-time delivery 2 2 ● Exceptions during delivery due processing ment performance (sales) ● Missing fields in incomplete sales document items ● Open and rescheduled sales schedule line items ● Outbound deliveries overdue for GI ● Overdue sales schedule line items ● ...

Human Resources Increase HR FTE productivity 28 3

Your Business Guide 24 PUBLIC Business Capabilities and Value Aspiration Number Number of rec­ of Solu­ om­ tion Ca­ mended Line of Business/ pabili­ Prod­ Technology Value Driver ties ucts Business Process Analytics KPIs

Application Devel­ Increase HR FTE productivity 2 2 opment and Inte­ gration

Human Resources Reduce HR cost per em­ 23 4 ● Open Leave Requests in status 'Posted' ployee ● WF-LT: Leave requests WF creation->WF ap­ proval ● WF: Leave requests with erroneous workflow ● WF: Leave requests with workflow in process

Application Devel­ Reduce HR cost per em­ 2 2 ● Open Leave Requests in status 'Posted' opment and Inte­ ployee ● WF-LT: Leave requests WF creation->WF ap­ gration proval ● WF: Leave requests with erroneous workflow ● WF: Leave requests with workflow in process

Finance Increase employee produc­ 1 1 ● Automation Rate: PM/CS notifications tivity ● Automation Rate: PM/CS orders ● Automation rate: Customer payments [%] ● Automation rate: FI-GL clearing [%] ● Automation rate: Outbound deliveries ● ...

Analytics Increase employee produc­ 4 1 ● Automation Rate: PM/CS notifications tivity ● Automation Rate: PM/CS orders ● Automation rate: Customer payments [%] ● Automation rate: FI-GL clearing [%] ● Automation rate: Outbound deliveries ● ...

Sourcing and Pro­ Increase employee produc­ 6 3 ● Automation Rate: PM/CS notifications curement tivity ● Automation Rate: PM/CS orders ● Automation rate: Customer payments [%] ● Automation rate: FI-GL clearing [%] ● Automation rate: Outbound deliveries ● ...

Application Devel­ Increase employee produc­ 4 2 ● Automation Rate: PM/CS notifications opment and Inte­ tivity ● Automation Rate: PM/CS orders gration ● Automation rate: Customer payments [%] ● Automation rate: FI-GL clearing [%] ● Automation rate: Outbound deliveries ● ...

Your Business Guide Business Capabilities and Value Aspiration PUBLIC 25 Number Number of rec­ of Solu­ om­ tion Ca­ mended Line of Business/ pabili­ Prod­ Technology Value Driver ties ucts Business Process Analytics KPIs

Healthcare Man­ Increase employee produc­ 3 1 ● Automation Rate: PM/CS notifications agement tivity ● Automation Rate: PM/CS orders ● Automation rate: Customer payments [%] ● Automation rate: FI-GL clearing [%] ● Automation rate: Outbound deliveries ● ...

IT Management Increase employee produc­ 2 2 ● Automation Rate: PM/CS notifications tivity ● Automation Rate: PM/CS orders ● Automation rate: Customer payments [%] ● Automation rate: FI-GL clearing [%] ● Automation rate: Outbound deliveries ● ...

Sourcing and Pro­ Reduce days in inventory 7 4 ● Physical inventory documents counted not curement posted ● Physical inventory documents created with reason ● Physical inventory documents not counted ● Physical inventory documents with posting block ● Stock level of blocked stock ● ...

Supply Chain Reduce days in inventory 13 3 ● Physical inventory documents counted not posted ● Physical inventory documents created with reason ● Physical inventory documents not counted ● Physical inventory documents with posting block ● Stock level of blocked stock ● ...

Marketing Increase revenue growth 8 2 ● Billing plan dates not billed ● Deliveries overdue for billing ● Delivery items overdue for billing ● Insufficient stock during delivery creation (STO) ● Missing fields in incomplete sales document items ● ...

Your Business Guide 26 PUBLIC Business Capabilities and Value Aspiration Number Number of rec­ of Solu­ om­ tion Ca­ mended Line of Business/ pabili­ Prod­ Technology Value Driver ties ucts Business Process Analytics KPIs

Healthcare Man­ Increase revenue growth 1 1 ● Billing plan dates not billed agement ● Deliveries overdue for billing ● Delivery items overdue for billing ● Insufficient stock during delivery creation (STO) ● Missing fields in incomplete sales document items ● ...

Healthcare Data Increase revenue growth 1 1 ● Billing plan dates not billed Insights ● Deliveries overdue for billing ● Delivery items overdue for billing ● Insufficient stock during delivery creation (STO) ● Missing fields in incomplete sales document items ● ...

Database and Data Increase revenue growth 3 2 ● Billing plan dates not billed Management ● Deliveries overdue for billing ● Delivery items overdue for billing ● Insufficient stock during delivery creation (STO) ● Missing fields in incomplete sales document items ● ...

Healthcare Man­ Improve profitability 1 1 ● Exceptions during cost calculation CK11N agement ● Exceptions during payment runs ● Marked but not released cost estimates with qty structure ● Marked but not released cost estimates with­ out qty structure

Sourcing and Pro­ Improve profitability 6 3 ● Exceptions during cost calculation CK11N curement ● Exceptions during payment runs ● Marked but not released cost estimates with qty structure ● Marked but not released cost estimates with­ out qty structure

Health Care and Improve quality of care 3 1 Cure

Your Business Guide Business Capabilities and Value Aspiration PUBLIC 27 Number Number of rec­ of Solu­ om­ tion Ca­ mended Line of Business/ pabili­ Prod­ Technology Value Driver ties ucts Business Process Analytics KPIs

Finance Reduce days sales outstand­ 3 2 ● Billing plan dates not billed ing (one - time benefit) ● Cancelling sales invoices ● Deliveries overdue for billing ● Delivery items overdue for billing ● Distinct exceptions during billing due proc­ essing ● ...

Marketing Increase customer satisfac­ 1 1 ● Exceptions during delivery due processing tion (STO) ● Exceptions during delivery due processing (sales) ● Missing fields in incomplete sales document items ● Open and rescheduled sales schedule line items ● Outbound delivery items overdue for GI post­ ing ● ...

Human Resources Increase HR administrator ef­ 1 1 ficiency due to intelligent services

Human Resources Reduce HR technology cost 1 2

Your Business Guide 28 PUBLIC Business Capabilities and Value Aspiration 3 Business Case, Realization Tracking, and Change Management

Given the summary and scope of the SAP Transformation Navigator session in the previous chapters, chapter 3 is intended to outline a helpful way forward.

The topics of chapter 3 are selected based on our experience of a very high number of customer planning discussions and are synchronized between the Business Guide, Technical Guide and Transformation Guide. For a complete overview, please refer to the chapter Proposal for The Next Steps – Leverage Complementing Tools and Services in the Transformation Guide.

While we want to give you clear guidance for the overall journey, it is up to you to choose the topics and level of engagement that meet your needs. For all topics we have structured the available tools and services along the following levels:

● Level 0: Self-service ● Level 1: Outside-in expert guidance ● Level 2: Joint planning ● Level 3: Joint execution

3.1 Build Your Transformation Case

Value Guided Business Case with SAP VLM [page 29]

Effort Consistent Framework for Transformation Project using SAP TCO Model Elements [page 30]

3.1.1 Guided Business Case with SAP VLM

Articulating the value of a technology investment is top of mind for customers.

Guided Business Case is the next generation tool on SAP Value Lifecycle Management (VLM) to address this topic. This new functionality is designed to help you create a business case in an intuitive and simple manner with access to SAP capabilities, products, value/ benefits, cost calculations, and project economics with just a few clicks!

● Provides clear guidance on the Value of Intelligent Enterprise ● Option to build business case by Process or by SAP Product ● Ability to create a business case from scratch (low touch) or from a benchmarking assessment (high touch)

Your Business Guide Business Case, Realization Tracking, and Change Management PUBLIC 29 ● Covers all major Line of Business, Industries (incl. segments) and SAP products ● Real-time, flexible output that can be customized

Starting Q3/20020, the SAP Transformation Navigator will link to the Guided Business Case self-service tool in VLM and submit the related information so that you can easily start your business case creation in VLM

The Next Generation Benchmarking in SAP VLM helps you understand and benchmark process maturity using peer comparisons: a unique and differentiated approach to measure, monitor, and optimize performance and to enable the Intelligent Enterprise.

● Identify key areas of process improvement opportunity ● Measure KPI and best practices maturity to uncover gaps ● Comparison between divisions and/or regions ● Comparison of current performance to past performance: establish baseline to prove success ● Coverage: 45+ survey assessments, 630+ KPIs, 640+ Best Practices – covering all cross-industry business processes and 5 industries ● Online scorecard in real-time showcasing digital process maturity, KPI analysis, prioritization of best practices and comparison to peers

3.1.2 Consistent Framework for Transformation Project using SAP TCO Model Elements

● The SAP Total Cost of Ownership (TCO) model covers all cost components across the solution lifecycle. ● Customer references and improvement ranges are available per cost component. ● To align IT and business, SAP shows how these business capabilities are covered by SAP solutions.

Your Business Guide 30 PUBLIC Business Case, Realization Tracking, and Change Management ● Project and Ongoing Operation Effort Estimate compares the as-is cost situation to the SAP S/4HANA transition over a 5-year timeframe. ● Solution enablers and accelerators help reducing the TCO.

Concept In this comprehensive TCO model, hardware and software investment cost, implementation cost, and ongoing cost (including continuous improvement projects) are covered.

Within four different levels, customers can now experience the offerings for cost estimates which are consistently linked to this TCO model. Due to the implementation of SAP S/4HANA, the ratio between different cost components will change. Additionally, SAP is offering several accelerators to decrease the total cost.

Self-Service In the first step, the customer uses SAP Transformation Navigator to get a first overview about Offering potential benefits and the transformation accelerators. Examples from other customer who already moved to SAP S/4HANA are available, and the SAP S/4HANA TCO Explorer shows potential ranges of cost reductions based on TCO elements over a five-year period.

Outside-In In the next step, an SAP expert will adjust parameters and accelerators of the SAP S/4HANA Guidance TCO Explorer together with the customer. In addition, a potential to shift focus of IT from operations to new topics will be evaluated. All results will then feed into a joint planning and calculation of the transformation efforts.

Joint The joint planning is done by the customer and the SAP expert. All defined TCO cost elements Planning are quantified. Based on company-specific cost rates, a detailed cost planning will be created Offering and the common realization will be started. If the customer also performed a Readiness Check or used other SAP services, their results can be integrated.

Joint The tracking of the prior defined TCO elements is one of the key elements of the final level of Execution collaboration. Deviations will be identified and adjustments will be made. This leads to an Offering optimization of the individual customer TCO cost elements over time.

Your Business Guide Business Case, Realization Tracking, and Change Management PUBLIC 31 3.2 Value Realization

● Proven improvement methodology based on Six Sigma ● Understand the impact of low-level key figures on strategic KPIs ● Visualize cause and effect in dependency diagrams ● Integrated in SAP Solution Manager ● SAP services available to get started

Concept When moving to SAP S/4HANA, there are several different challenges that are essential for a solid foundation for the new system.

1. To avoid unnecessary memory costs and to speed up the technical migration, you need to identify old and open business documents that need to be closed before they can be archived. 2. To gain the full potential of the important SAP S/4HANA topics like Fast Close and MRP planning, it is also important to clean up respective old and open business documents first. 3. If you want to also harmonize and standardize your business processes and reduce complexity, then master data and document types should be identified that are used, no longer used, or not used at all. The later should also not be brought over to the new system. 4. To ensure that you are well prepared for scenarios like lot size of 1 or customer segment of 1, the classical back office processes like sales, purchasing and manufacturing should run highly automated. If that is not yet the case, one should check how the degree of automation can be increased. 5. A lot of inefficiencies or ineffectiveness related to business KPIs like DSO, DPO, DII are related to inaccurate master data, non-optimal configuration, business process design, or end-user behavior. If not tackled accordingly, those problems will also persist in a new SAP S/4HANA environment as this is nothing that can be technically resolved, but requires manual and organizational involvement.

All those topics are addressed as part of the business process improvement service of SAP.

Self-Service SAP Transformation Navigator provides a mapping of selected business process analytics KPIs Offering to value drivers of interest. The respective business process analytics KPIs help to operationalize the improvement of the corresponding value driver.

Outside-In During the Business Process Improvement Opportunity Check, 30 out-of-the-box key figures Guidance are executed remotely and results are prepared in a short report to provide a rough scoping for potential future business process improvement activities. The report provides an as-is analysis on:

● Working capital KPIs like DSO, DPO, and DII

Your Business Guide 32 PUBLIC Business Case, Realization Tracking, and Change Management ● Degree of automatic document creation ● Clean-up potential for old and open business documents ● Usage of custom and configured document types

Joint During the Plan & Build phase of the business process improvement service, one takes the Planning results of the Business Process Improvement Opportunity Check and creates a more detailed Offering plan for potential future business process improvement activities. A first set of best practice key figures is activated for business process analytics in SAP Solution Manager. On top if this, some sample configuration for management reporting and progress tracking is performed in SAP Solution Manager.

Joint During the Run phase of the business process improvement service, old and open business Execution documents are highlighted that should be closed, and recommendations are given with which Offering mass activities such documents can be cleared. Unused and obsolete master data and document types as well as possible negative influencing factors on business drivers or value drivers can be identified. One can also provide some deeper analysis on how process automation can be increased and manual re-processing needs can be avoided due to error reduction.

3.3 Align IT and Business - Especially Regarding Functional Coverage

● The over-arching needs of an organization to perform their core functions are illustrated as business capabilities. ● Business capabilities describe what a business does. ● To align IT and business, SAP shows how these business capabilities are covered by SAP solutions. ● Business capabilities are used to describe the scope of SAP products from a business point of view. ● To issue the correct product recommendation, business capabilities are considered to identify the current SAP solution that covers them.

Concept The essential question of an organization deciding for an IT solution is "Does the solution support my business and can it cover my needs to perform my core functions?". To answer that question, SAP has defined business capability models for each industry, illustrating the over-arching needs of an organization, describing what the business does.

Your Business Guide Business Case, Realization Tracking, and Change Management PUBLIC 33 These business capabilities are mapped to solutions that SAP provide to support these business needs. Like that, the organization can easily drive the decision process based on the business needs without having to worry about the technical details of an IT solution. However, the IT solutions required are derived from the selected business capabilities.

This methodology supports both the transformation from a current SAP product landscape as well as the expansion with the goal to cover additional business capabilities. To issue the correct product recommendation based on the existing SAP product landscape, business capabilities are considered to identify the current SAP solution that covers them.

At the same time, SAP uses business capabilities to describe the scope of SAP products from a business point of view. Potential value drivers are also identified based on the business capabilities.

Self-Service SAP Transformation Navigator provides the opportunity to browse through the business Offering capability model of a respective industry, and shows the solutions that fulfill the required needs. Based on the needs of the organization, business capabilities can be selected and the SAP solution plus the underlying product are added to the product map in SAP Transformation Navigator.

Outside-In With the SAP S/4HANA Discovery Workshop, companies assess the relevant scope of SAP S/ Guidance 4HANA and the readiness to adopt it. Using a value-based approach, an on-site workshop provides guidance about the benefits and transformation paths of adopting SAP S/4HANA. The discovery workshop includes an introduction to SAP S/4HANA per line of business, identifies benefits related to SAP S/4HANA based on value drivers, presents potential transition scenarios, and provides an outlook on typical implementation approaches.

Joint The Value & Implementation Strategy service brings the results of the SAP S/4HANA Planning Discovery Workshop to the next level of detail. Starting from the business priorities and the Offering value chain built on SAP S/4HANA, customers will receive suitable business scenarios, a target architecture, a validated high-level program plan, an implementation strategy, and a benefit/ complexity evaluation.

Joint The SAP Model Company kickstarts your digital transformation. SAP Model Companies are Execution prepackaged solutions tailored to industry or line of business and offer end-to-end, ready-to- Offering use reference functionality delivered as a service. They include all applications, settings, configurations, and sample data necessary to start a digital transformation project immediately.

3.4 Digital Innovations

● Gain innovation insights and get the opportunity to shape new innovation ideas with SAP Leonardo Services ● Design new innovative solutions enriching your S/4HANA implementation roadmap to maximize S/4HANA benefit using SAP Leonardo Services ● Discover SAP’s collaboration offerings and participate in shaping new and existing solutions relevant for your S/4HANA transformation roadmap

Your Business Guide 34 PUBLIC Business Case, Realization Tracking, and Change Management Concept A central task for every S/4HANA implementation is to assess the business value for the organization’s processes and business models. Therefore, it is essential for customers to discover and scope the innovations and new possibilities that SAP S/4HANA provides to maximize the value it can generate for their organizations. However, the discovery of the innovation potential of SAP S/4HANA is not only important for unlocking the business value, but is also key to gaining and sustaining competitive advantage.

But not only the assessment of what SAP S/4HANA already delivers is necessary, a closer look on what is there to come is also important to get a complete view on the value and competitive advantage of SAP S/4HANA. Questions about, for example, the plans of SAP, future innovations on the roadmap, and ways to influence or shape new solutions need to be investigated.

Only knowing the answers will give customers a complete picture of the potential business value, and the disruptive character of SAP S/4HANA will unfold. These answers will also be the foundation to foresee the impact of planned and upcoming innovations on the customers' transformation roadmaps.

This step addresses services and tasks that will assist customers discovering S/4HANA roadmap innovations, solution plans and ideas beyond. The step will help identifying valuable future applications, capabilities and their derived impact on the transformation roadmap. But not only will this step cover the discovery of existing plans and roadmaps, it will furthermore allow customers to actively engage.

SAP offers various programs to join customer engagement initiatives having various parties with different points of view, diverse skill sets and competencies to jointly build and shape innovative solutions. But moreover, this step also includes the opportunity for individual

Your Business Guide Business Case, Realization Tracking, and Change Management PUBLIC 35 customers to team up with SAP experts to innovate tailored solutions with SAP Leonardo Innovation Services to produce market-ready solutions fitting the customers' own roadmap. Engineering excellence meets entrepreneurial spirit.

Self-Service SAP Transformation Navigator, the SAP Customer Influence portal, and the SAP Innovation Offering Discovery platform simplify the search for new and planned functionality and features. They allow to evaluate and discuss innovations with having both business and technical information at a glance. The combination of the self-service tools provides customers with the opportunity to do a first research and discovery of the existing and planned innovations of SAP S/4HANA, and will assist to tailor them to the customers' needs and capabilities.

Outside-In With the SAP S/4HANA Discovery Workshop including the Industry Golden Document & Guidance proposed Digital Priorities, companies can assess the scope of SAP S/4HANA. The workshop will guide them through the capabilities of SAP S/4HANA, and will derive the impact on value drivers as well as the customer implementation roadmap. This service can also serve as a foundation to scope influence innitiatives and to start innovation workshops with SAP Leonardo services if customers discover missing areas in their transformation roadmap.

Joint The Value & Implementation Strategy service provides the possibility to derive innovations and Planning solutions that can enrich and match customers' S/4HANA transformation roadmaps. Starting Offering from business priorities, target architecture, implementation strategies, and a benefit- complexity evaluation, this service lays the foundation to identify existing or planned innovations. Moreover, using the SAP Leonardo Service, customers receive assistance with ideating and building new innovative solutions tailored to the customer needs and fitting their transformation roadmap.

Joint Customers collaboration and co-innovation initiatives are accompanied by a standardized, Execution strong and best-practice innovation methodology. If customers decide to join a Customer Offering Engagement Initiative or a Customer Roundtable, or if customers build new solutions using the SAP Leonardo services, a reliable and proven innovation project methodology will complement the process.

Your Business Guide 36 PUBLIC Business Case, Realization Tracking, and Change Management Legal Disclaimer

The information in this document is not subject to your license agreement or any other service or subscription agreement with SAP. Previews or any related presentation and SAP's strategy and possible future developments, products, platforms, directions, and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information is not a commitment, promise or legal obligation to deliver any material, code, or functionality. This information is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in the document, except if such damages were caused by SAP´s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward- looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

Your Business Guide Legal Disclaimer PUBLIC 37 sap.com/ TransformationNavigator

to access the SAP Transformation Click HERE Navigator session of this document.

© 2018 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. The information contained herein may be changed without prior notice.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.

Please see https://www.sap.com/about/legal/trademark.html for additional trademark information and notices.

THE BEST RUN HEALTHCARE_TEMPLATE | SAP | PUBLIC 2020-06-24

Your Technical Guide SAP Transformation Navigator

to access the SAP Transformation Click HERE Navigator session of this document. company. All rights reserved. affiliate

THE BEST RUN 2018 SAP SE or an SAP © Content

About this document...... 3

1 Digital Framework and Reference Landscape Outlook...... 4 1.1 The Roadmap to the Intelligent Enterprise...... 4 1.2 Reference Product Map: Healthcare...... 6 1.3 SAP Road Map Explorer...... 7 1.4 Cloud Integration...... 7

2 Guidance on Currently Used Applications...... 9 2.1 Guidance per Current Product...... 9 2.2 Industry Reference Product Map Coverage...... 11 2.3 Integration and Transition Guides...... 12

3 Advanced System and Landscape Analysis...... 14 3.1 Scoping the Digital Core...... 14 3.2 Advanced System Analysis...... 16 3.3 Country and Language Coverage / Global Solutions Without Boundaries...... 18 3.4 Consistent Framework for Transformation Project using SAP TCO Model Elements...... 20 3.5 SAP HANA Enterprise Cloud: Your Accelerated Path to SAP S/4HANA Cloud...... 21

Your Technical Guide 2 PUBLIC Content About this document

● The Technical Guide aims to help customers move from seeing the need for digital transformation to starting the journey. ● It summarizes the output of the SAP Transformation Navigator self-service tool regarding the technical perspective. A business guide and a transformation guide are also available to comprehensively address all stakeholder needs. ● In the Technical Guide, we cover the digital framework and reference landscape outlook, summarize your go-to guidance on currently used applications, and list advanced system and landscape analysis options.

In this digital economy, it’s winner takes all, and early movers are typically the winners. But, there’s a big difference between understanding the need to move, and knowing where to go – with the SAP Transformation Navigator we offer a comprehensive self-service tool to start the journey.

This technical guide summarizes all information and decisions you have made in the SAP Transformation Navigator self-service tool, but enriches them with relevant overall SAP information, and provides an overview of the follow-up work that we have seen useful in many customer cases.

The storyline starts from a strategic perspective, summarizes the need for action, and outlines the necessary follow-up work.

The Digital framework Starting from SAP’S digital framework, a reference landscape for your industry and reference landscape helps build the story for your company. The product roadmap availability should outlook also support planning your journey.

Go-To Guidance on Based on the selected product map and the IT-strategy decisions, you're given an currently used overview of the go-to recommendations. You'll also see a comparison to the applications reference landscape for your industry and a list of the associated integration information.

Advanced system and Moving to execution will require many in-depth analysis, many of which are landscape analysis supported by SAP tools. Examples include the custom code analysis, sizing, Fiori options recommendations, and opportunities for multi-instance consolidation.

We are looking forward to the discussion with you on your journey.

Your Technical Guide About this document PUBLIC 3 1 Digital Framework and Reference Landscape Outlook

In this section:

The Roadmap to the Intelligent Enterprise [page 4]

Reference Product Map: Healthcare [page 6]

SAP Road Map Explorer [page 7]

Cloud Integration [page 7]

1.1 The Roadmap to the Intelligent Enterprise

SAP is committed to supporting every customer to become a best-run business and a leader in their industry. Working with our customers, we transform industries, grow economies, lift up societies, and sustain our environment. We believe that the best-run businesses make the world run better – and the best run SAP.

We believe that best-run businesses are intelligent enterprises – breaking down silos and adopting intelligent, dynamic, cross-functional business processes to deliver optimal experiences.

Our Intelligent Enterprise Framework provides three essential components to help you achieve these goals:

Experience (X-Data): Experience management to holistically measure and track stakeholder experiences across all touchpoints, prioritize and predict stakeholder needs and trends with key experience drivers, drive action, and facilitate optimization by tracking progress and experience improvement.

Your Technical Guide 4 PUBLIC Digital Framework and Reference Landscape Outlook Intelligence:

A business technology platform which provides unified data management to connect, discover, orchestrate, and manage both internal and external data, intelligent technologies and analytics to improve analytical and transactional workloads, and application services to simplify extension and integration across the intelligent suite.

Operations (O-Data):

An intelligent suite of applications to automate day-to-day business processes, share insights across functions, and better interact with customers, suppliers, employees, and partners through applications embedded with intelligence.

Learn more about the Intelligent Enterprise Framework at sap.com/intelligententerprise.

Start Your Transformation

Every industry has its own dynamics and standards for best practices, and every company is at a different starting point with its own set of business priorities. With so many variables, there are numerous ways to become an intelligent enterprise. Your path depends on your industry, your business objectives, your digital strategy, and your stage in the transformation journey. You have the freedom to choose where to begin, and which path to follow to become an intelligent enterprise.

SAP provides clear, guided pathways with a variety of solutions aligned to your strategic priorities. Read the corresponding sections of the white paper: “The Journey to the Intelligent Enterprise” to learn how SAP products and solutions can help you transform the areas of your business.

In the SAP Transformation Navigator you can not only explore SAP’s complete portfolio for your industry but also the clear guided pathways and recommendations:

● get specific recommendations based on the products you are currently using, incl. transition- and integration information when available

Your Technical Guide Digital Framework and Reference Landscape Outlook PUBLIC 5 ● browse and add further capabilities and solutions to get related product recommendations that cover your additional business needs ● or explore SAP’s comprehensive product and solution portfolio and build your landscape of recommended products and solutions from scratch

1.2 Reference Product Map: Healthcare

● The industry reference product map shows the most important products for the Healthcare sector in the context of the SAP Intelligent Enterprise. ● Products are selected based on our experience and thought leadership and are not based on your current SAP footprint. ● Not all products can be licensed separately and some are shown as clusters of individual products. ● For a complete overview and a comparison of your recommended products versus the industry reference products, please see Industry Reference Product Map Coverage [page 11].

Your Technical Guide 6 PUBLIC Digital Framework and Reference Landscape Outlook 1.3 SAP Road Map Explorer

SAP road maps support the journey to SAP’s future product portfolio and the Intelligent Enterprise.

The SAP Road Map Explorer provides you with:

● The latest road map content, by product, process and industry. ● Detailed updates on product information. ● Possibilities to explore, filter, and customize your own road map.

Discover the new experience at roadmaps.sap.com.

Extensive customer research gave us insights on customer needs and the explorer was developed on this basis – to deliver extensive and detailed product road map information. The new user interface makes it easy to search products, industries, and processes, making road maps now easier to consume.

The explorer offers a Google-like search for all road maps, and three entry points to search them – the search bar, the quick access toolbar, and the header filter. The innovations are displayed in a Kanban board style, allowing further searches to refine the results, including various time horizons in the future and the past. Each innovation “box” displays very detailed information about the innovation or feature.

You can also personalize the content – under My Road Maps Saved Road Maps to create innovation sets or favorite road maps – and share it via the Share icon. A feedback button is included on the landing page, allowing the collection of anonymous and non-anonymous feedback.

A download option to Excel is available and will be further improved.

See the promotion video and check out roadmaps.sap.com for further information.

See an overview of all SAP road maps.

1.4 Cloud Integration

Your Technical Guide Digital Framework and Reference Landscape Outlook PUBLIC 7 Cloud solutions make up a significant portion of SAP’s portfolio and SAP is committed to continually broaden and extend integration capabilities of those cloud solutions.

● SAP’s cloud Line of Business (LoB) solutions – e.g. AP Success Factors, SAP Ariba, SAP Concur, SAP Fieldglass, SAP C/4 – offer seamless end-to-end integration capabilities to SAP S/4HANA and SAP ERP. ● LoB solutions support common integration qualities to harmonize the integration experience across solutions. ● SAP’s process integration strategy for cloud and hybrid scenarios is based on public APIs and SAP Cloud Platform Integration as the strategic integration middleware.

For more information see the overview of the SAP Cloud Platform Integration Suite and various Customer COE and CIO Guides on integration topics.

Discover and consume digital content packages with APIs, pre-packaged integrations, and sample apps from SAP and select partners on the SAP API Business Hub.

Your Technical Guide 8 PUBLIC Digital Framework and Reference Landscape Outlook 2 Guidance on Currently Used Applications

2.1 Guidance per Current Product

This table shows a summary of all recommendations for your currently used products. If your product map does not contain any current products, the table is empty. The table also shows future changes in recommendations, if applicable, as new products or product features become available. For details on any listed transformations see Integration and Transition Guides [page 12].

Deployment Transition Available as Current product Rationale Preference Recommended Product Type of

SAP Access Control Default rec­ n/a SAP Access Control for SAP Upgrade now ommenda­ S/4HANA tion

SAP Business Information Default rec­ n/a SAP BW/4HANA Conversion now Warehouse ommenda­ tion

SAP Customer Relationship Stay-on n/a SAP Customer Relationship Context-spe­ now Management Management cific

SAP ERP Selection of see Business SAP S/4HANA Conversion now capability, Guide 2.1 see Busi­ ness Guide 2.1

SAP ERP Stay-on n/a SAP ERP Context-spe­ now cific

SAP ERP Selection of see Business SAP SuccessFactors Em­ Process Trans­ now capability, Guide 2.1 ployee Central formation see Busi­ ness Guide 2.1

SAP ERP Selection of see Business SAP Invoice and Goods Re­ Context-spe­ now capability, Guide 2.1 ceipt Reconciliation cific see Busi­ ness Guide 2.1

SAP ERP Selection of see Business SAP SuccessFactors Em­ Context-spe­ now capability, Guide 2.1 ployee Central Payroll cific see Busi­ ness Guide 2.1

Your Technical Guide Guidance on Currently Used Applications PUBLIC 9 Deployment Transition Available as Current product Rationale Preference Recommended Product Type of

SAP ERP Selection of see Business SAP Cash Application Context-spe­ now capability, Guide 2.1 cific see Busi­ ness Guide 2.1

SAP HANA, platform edition Stay-on n/a SAP HANA, platform edition Individual Eval­ now uation

SAP Lumira Default rec­ Cloud SAP Analytics Cloud Process Trans­ now ommenda­ formation tion for se­ lected pref­ erence

SAP Master Data Gover­ Stay-on n/a SAP Master Data Gover­ Individual Eval­ now nance nance uation

SAP Predictive Analytics Default rec­ Cloud SAP Analytics Cloud Process Trans­ now ommenda­ formation tion for se­ lected pref­ erence

SAP Solution Manager Stay-on n/a SAP Solution Manager Individual Eval­ now uation

SAP Supplier Relationship Selection of see Business SAP Ariba Procurement, Conversion now Management capability, Guide 2.1 cloud edition see Busi­ ness Guide 2.1

SAP Supplier Relationship Selection of see Business SAP S/4HANA Cloud Conversion now Management capability, Guide 2.1 see Busi­ ness Guide 2.1

SAP Supplier Relationship Selection of see Business Ariba Sourcing, cloud edition Conversion now Management capability, Guide 2.1 see Busi­ ness Guide 2.1

SAP Supplier Relationship Selection of see Business Ariba Network Process Trans­ 2020 Q3 Management capability, Guide 2.1 formation see Busi­ ness Guide 2.1

SAP Supply Chain Manage­ Selection of see Business SAP S/4HANA Cloud Process Trans­ now ment capability, Guide 2.1 formation see Busi­ ness Guide 2.1

Your Technical Guide 10 PUBLIC Guidance on Currently Used Applications 2.2 Industry Reference Product Map Coverage

This table indicates which products of the Industry Reference Product Map are currently part of your recommended products. .For details of the Industry Reference Product Map see Reference Product Map: Healthcare [page 6].

Product of Industry reference product map Part of your product map

Ariba Network -

Ariba Sourcing, cloud edition X

Concur Expense -

Concur Invoice -

Concur Travel -

SAP Access Control for SAP S/4HANA X

SAP Agile Data Preparation, on-premise edition -

SAP Analytics Cloud X

SAP Ariba Procurement, cloud edition X

SAP Asset Intelligence Network -

SAP Business ByDesign -

SAP Business One -

SAP Business One Cloud -

SAP Business Planning and Consolidation, version for SAP BW/4HANA -

SAP BusinessObjects Business Intelligence platform -

SAP BW/4HANA X

SAP Cloud for Customer add-ins -

SAP Cloud Platform Big Data Services -

SAP Cloud Platform Portal -

SAP Commerce Cloud -

SAP Customer Data Cloud -

SAP Data Intelligence -

SAP Data Services -

SAP Document Center, cloud edition -

SAP Enterprise Threat Detection -

SAP ERP X

SAP Extended Warehouse Management -

SAP Fieldglass Vendor Management System -

SAP Fiori Cloud -

Your Technical Guide Guidance on Currently Used Applications PUBLIC 11 Product of Industry reference product map Part of your product map

SAP Gateway -

SAP Global Trade Services -

SAP HANA smart data integration -

SAP HANA, platform edition X

SAP Identity Management -

SAP Information Steward -

SAP Innovation Management -

SAP Integrated Business Planning for Supply Chain -

SAP Jam Collaboration -

SAP Manufacturing Execution -

SAP Manufacturing Integration and Intelligence -

SAP Master Data Governance X

SAP Predictive Maintenance and Service, cloud edition -

SAP Predictive Maintenance and Service, on-premise edition -

SAP Revenue Accounting and Reporting -

SAP S/4HANA X

SAP S/4HANA Cloud X

SAP Single Sign-On -

SAP Solution Manager X

SAP SuccessFactors Employee Central X

SAP SuccessFactors Employee Central Payroll X

SAP SuccessFactors Learning -

SAP SuccessFactors Onboarding -

SAP SuccessFactors Recruiting -

SAP SuccessFactors Workforce Analytics -

SAP Transportation Management -

2.3 Integration and Transition Guides

This table provides links to the integration and transition guides for the products recommended to you.

Current product Recommended Product Guide

SAP Access Control SAP Access Control for SAP S/4HANA Transition Information

Your Technical Guide 12 PUBLIC Guidance on Currently Used Applications Current product Recommended Product Guide

SAP Business Information Warehouse SAP BW/4HANA Transition Information

SAP ERP SAP S/4HANA Making the Case for S/ 4HANA: SAP Business Sce­ nario Recommendations

SAP ERP SAP S/4HANA Mapping Your Journey to SAP S/4HANA - A Practical Guide for Senior IT Leader­ ship

SAP ERP SAP S/4HANA SAP Help Portal, Transition Information (see tab "Imple­ ment")

SAP ERP SAP S/4HANA SAP S/4HANA Adoption Starter: A free-of-charge service to develop your road­ map guided by SAP-experts

SAP ERP SAP S/4HANA Transition to intelligent ERP with the SAP S/4HANA Movement program

SAP ERP SAP SuccessFactors Employee Central SAP Help Portal: Employee Central

SAP ERP SAP SuccessFactors Employee Central sap.com: Solution Overview

SAP ERP SAP SuccessFactors Employee Central Pay­ SAP Help Portal: SAP Suc­ roll cessFactors Employee Cen­ tral Payroll

SAP Lumira SAP Analytics Cloud Transition Information

SAP Predictive Analytics SAP Analytics Cloud Transition Information

Your Technical Guide Guidance on Currently Used Applications PUBLIC 13 3 Advanced System and Landscape Analysis

Given the summary and scope of the SAP Transformation Navigator session in the previous chapters, chapter 3 is intended to outline a helpful way forward.

The topics of chapter 3 are selected based on our experience of a very high number of customer planning discussions and are synchronized between the Business Guide, Technical Guide and Transformation Guide. For a complete overview, please refer to the chapter Proposal for The Next Steps – Leverage Complementing Tools and Services in the Transformation Guide.

It is our ambition to give you clear guidance for the overall journey, however, the topic selection and level of engagement are of course the choice of the customer and should follow your individual needs. For all topics we have structured the available tools and services along the following levels:

● Level 0: Self-service ● Level 1: Outside-in expert guidance ● Level 2: Joint planning ● Level 3: Joint execution

You are in the driver seat to select, in any case the topics and levels follow a consistent and synchronized concept and can be combined as required.

3.1 Scoping the Digital Core

● Strategic scoping of the transition effort ● Assess current landscape setup point ● Discover needs for consolidations or for separate instances, for example, by region or by division ● Agree on high-level desired end-state and the topology of the solutions ● Get ready for the next level of planning in SAP Transformation Navigator, transition steps such as greenfield vs. conversion, or rollout approaches, and end prioritizations to define where to start

Your Technical Guide 14 PUBLIC Advanced System and Landscape Analysis Concept “Scoping the digital core” is a strategic precursor to more detailed architecture considerations and transition planning activities. It is intended to give these follow-up activities a clear direction. A possible but rather atypical example could be the following: A company has different and changing business models for different business divisions. This situation drives the company to establish tailored solutions by division, which might result in the parallel execution of the next steps per division, for example, modeling using SAP Transformation Navigator, start- point determination, and quick value assessment.

In most case there will be more drivers to simplify the solution landscape to not only reduce IT total cost of ownership (TCO), but to also achieve business synergies and agility. The amount of desired harmonization and consolidation is customer-specific and the following activities in the context of outside-in guidance and joint planning will help to validate planning assumptions.

Self-Service To run a “Planning the Digital Core” as a self-service, a small set of templates and instructions Offering can be used to help getting to an outcome. Often, former enterprise architecture efforts can be re-used or refined to not start from scratch.

Outside-In With the SAP S/4HANA Discovery Workshop, companies assess the relevant scope of SAP S/ Guidance 4HANA and, thus, the definition of the digital core. Even though the discovery workshop includes an introduction to SAP S/4HANA and its value drivers, the workshop will also evaluate potential transition scenarios and provides an outlook on typical implementation approaches.

Joint The more in-depth “Scoping the Digital Core” can be done using the Innovation Strategy and Planning Roadmap (ISR) service. During this service, change drivers are identified and to-be capabilities Offering of the future landscape are derived. This perspective includes business and technical capabilities, and non-functional criteria such as scalability and maintainability. The core outcomes are the target application, technical architecture and the desired transition path. As the ISR offering includes a prioritization and road-mapping exercise to trigger funding decisions, it is clear that the planning effort will go beyond the strategic level and includes possible prototyping efforts and other deep dives to validate architecture proposals.

Your Technical Guide Advanced System and Landscape Analysis PUBLIC 15 Joint Implementing the digital core implies all activities of the scoping the digital core are done, and a Execution number of transition programs will be kicked off according to a defined transformation Offering roadmap. As transformation programs often run for multiple years, it makes sense to revisit and refine some of the former planning results. Typically, these revisions should still be in line with the initial planning cycle and, therefore, rather focus on specific product transitions and specific transition questions. An example could be an effort on how to accelerate a running rollout program.

3.2 Advanced System Analysis

● Analysis of the source ERP system to prepare for an SAP S/4HANA system conversion: Required changes, important aspects to be considered in advance of the project start ● The SAP Readiness Check summarizes many important aspects of the conversion and displays the result in a dashboard that can be used for follow-up discussions and further investigations. ● For a new implementation of SAP S/4HANA the SAP Readiness Check can give some insights into upcoming application changes as well, however the focus of the tool is the system conversion scenario.

The SAP Readiness Check tackles the following aspects of a conversion to SAP S/4HANA:

● SAP business functions compatibility check ● SAP add-on compatibility check and information about installed 3rd-party add-ons ● High-level custom code analysis ● Recommended Fiori apps

Your Technical Guide 16 PUBLIC Advanced System and Landscape Analysis ● SAP S/4HANA target system sizing ● Simplification Item check ● Business process analytics ● SAP Custom Development projects ● Associated links ● Planned for Q2: Data Volume Management analysis ● Planned for Q2: Business Warehouse extractors check

1. SAP Business Functions and SAP Add-On Compatibility Check, Information About Installed 3rd-Party Add-Ons

● Before you can convert your existing SAP ERP system to SAP S/4HANA, you need to analyze whether all SAP and 3rd-party add-ons are compatible with SAP S/4HANA, and identify the compatibility of active business functions in your system. ● The SAP Readiness Check does that analysis based on your current SAP ERP 6.x system and lists the status in the dashboard.

Please see the following SAP Notes for more information:

● 2214409: SAP S/4HANA: Compatible Add-ons ● 2834099: SAP S/4HANA 1909: Compatible partner products

2. High-Level Custom Code Analysis and SAP Custom Development Projects

● To transition to SAP S/4HANA, you need to analyze your custom code to investigate the impact of simplification items and data structure redesign in the digital core of SAP S/4HANA. You can run an analysis of impacts on custom code right now, long before the actual start of an S/4HANA conversion or implementation project. ● The SAP Readiness Check for SAP S/4HANA provides a high-level analysis of the SAP S/4HANA-related aspects. However, you'll need to do an in-depth analysis using SAP Solution Manager 7.2 and NetWeaver 7.52-based tools once you kick off the project itself.

Please see the following resources for more information on the topic:

● SAP S/4HANA System Conversion – Custom Code adaption ● ABAP Testing and Analysis Community ● Innovation Services and Solutions (formerly custom development projects)

3. Recommended Fiori Apps

● SAP Fiori is the new user experience for SAP software. It applies modern design principles to a set of common business apps, making them much simpler to use. Customers can adapt and create their own SAP Fiori apps tailored to their own needs. UX design services as well as design and development tools are available. The SAP Fiori user interface (UI) can be run on desktop machines, and a mobile version is available for all devices. For many SAP classic transaction codes, which you know from your previous SAP ERP-based solution, we have designed new SAP Fiori apps tailored to specific users. In most cases, the classic transactions remain so that you can decide how quickly to do your end-users transition to the new SAP Fiori apps. ● The SAP Readiness Check gives you Fiori app recommendations based on your historic ERP transaction usage.

Please see the following resources for more information on the topic:

● SAP Fiori information

Your Technical Guide Advanced System and Landscape Analysis PUBLIC 17 ● SAP Fiori Reference Library

4. SAP S/4HANA Target System Sizing

● To transition to SAP S/4HANA and the new digital core, it's important to your future SAP S/4HANA system and associated landscape to do sizing. Sizing is an iterative process to translate business requirements into hardware requirements. Sizing not only means to determine the new SAP HANA and SAP S/4HANA memory requirements, but to also consider other hardware requirements such as CPU power, disk space, I/O capacity, and network bandwidth. ● The SAP Readiness Check addresses the part of memory and disk sizing as an initial first step and presents the results in the SAP Readiness Check dashboard.

Please see the following resources for more information on the topic:

● General sizing overview ● SAP Note 1872170: SAP S/4HANA sizing ● SAP Note 2363248: SAP BW/4HANA sizing

5. Simplification Item Check

● A side-effect of the innovations included in SAP S/4HANA, and ones planned to be included in the future, is that they could introduce some disruption. Simplification Items describe business functionalities that have been simplified in SAP S/4HANA, or replaced with new functionality, or that have been removed from SAP S/4HANA. To check which ones are relevant to you, the simplification items must be mapped to your current system usage. ● The SAP Readiness Check for SAP S/4HANA runs this analysis on your existing SAP ERP system and presents the results in the SAP Readiness Check dashboard. You will then only see those Simplification Items that are impactful to your specific ERP system.

Please see the following resources for more information on the topic:

● SAP Simplification Item catalog for an overview about all simplifications ● 2769531: SAP S/4HANA 1909: Release Information Note ● 2799003: SAP S/4HANA 1909: Restriction Note

SAP Value Assurance service packages provide a methodology, best practices, guided configuration, implementation, data migration, development expertise, and tools for your transition to SAP S/4HANA, and address the above topics in further detail. There are existing services for the various workstreams such as Application Design & Configuration, Custom Code Extension, Technical Architecture & Infrastructure and many more.

Please contact your SAP representative in order to find out more about SAP Value Assurance services.

3.3 Country and Language Coverage / Global Solutions Without Boundaries

● The new SAP Localization Hub and Translation Hub are innovative approaches from SAP Globalization Services to offer flexible localization and translation functionality. For more information, see SAP Note 2397764.

Your Technical Guide 18 PUBLIC Advanced System and Landscape Analysis ● SAP products such as SAP S/4HANA can meet diverse business and legal requirements worldwide, and support multiple languages, currencies, and time zones using built-in translation and localization tools. ● For example, SAP S/4HANA 1610 supports 39 languages and 63 country versions. The available languages can be used concurrently and in any combination. ● Your employees can select the language of their choice for the User Interface (UI).

Description ● All companies must be able to succeed in a global marketplace. To do that, they need immediate access to critical data across an extended value chain – data that's available in a range of formats and languages. Your organization must be able to comply with a range of country-specific financial reporting standards, tax calculations, and laws. ● SAP products, such as SAP S/4HANA, are designed to meet diverse business and legal requirements worldwide and to support multiple languages, currencies, and time zones with built-in translation and localization tools. They give you the scalability and flexibility needed to succeed in today’s global environment. ● SAP provides versions for many countries with localized functionality in flexible deployments on-premise and on Cloud. For example, the newest SAP product version SAP S/4HANA 1610 on-premise supports 39 languages and 63 country versions (Financials & Operations). ● All SAP solutions access a common terminology database, to ensure consistency and clarity throughout the enterprise. You can use the available languages concurrently, and in any combination, with SAP Unicode. ● Your employees can also select the language of their choice for the UI.

Further ● SAP Globalization landing page Information ● Comprehensive information on Globalization topics - has details about country versions with localized functionality (SAP S-user required), and more ● Product availability matrix for language information for all SAP products. (SAP S-user required)

Your Technical Guide Advanced System and Landscape Analysis PUBLIC 19 SAP DBS ● SAP Globalization Services offers a broad range of dedicated services, such as Service globalization and localization workshops, which are available at https:// Offering support.sap.com/en/product/globalization.html under Service Offerings. ● The SAP Localization Hub and Translation Hub are innovative approaches from SAP Globalization Services to offer flexible localization and translation functionality. For more information, see SAP Note 2397764.. ● If you have questions, you can reach us at [email protected].

Effort on ● The time and effort needed set up for globalization depends on how many countries Customer Side you're planning to do business with.

3.4 Consistent Framework for Transformation Project using SAP TCO Model Elements

● The SAP Total Cost of Ownership (TCO) model covers all cost components across the solution lifecycle. ● Customer references and improvement ranges are available per cost component. ● To align IT and business, SAP shows how these business capabilities are covered by SAP solutions. ● Project and Ongoing Operation Effort Estimate compares the as-is cost situation to the SAP S/4HANA transition over a 5-year timeframe. ● Solution enablers and accelerators help reducing the TCO.

Concept In this comprehensive TCO model, hardware and software investment cost, implementation cost, and ongoing cost (including continuous improvement projects) are covered.

Within four different levels, customers can now experience the offerings for cost estimates which are consistently linked to this TCO model. Due to the implementation of SAP S/4HANA,

Your Technical Guide 20 PUBLIC Advanced System and Landscape Analysis the ratio between different cost components will change. Additionally, SAP is offering several accelerators to decrease the total cost.

Self-Service In the first step, the customer uses SAP Transformation Navigator to get a first overview about Offering potential benefits and the transformation accelerators. Examples from other customer who already moved to SAP S/4HANA are available, and the SAP S/4HANA TCO Explorer shows potential ranges of cost reductions based on TCO elements over a five-year period.

Outside-In In the next step, an SAP expert will adjust parameters and accelerators of the SAP S/4HANA Guidance TCO Explorer together with the customer. In addition, a potential to shift focus of IT from operations to new topics will be evaluated. All results will then feed into a joint planning and calculation of the transformation efforts.

Joint The joint planning is done by the customer and the SAP expert. All defined TCO cost elements Planning are quantified. Based on company-specific cost rates, a detailed cost planning will be created Offering and the common realization will be started. If the customer also performed a Readiness Check or used other SAP services, their results can be integrated.

Joint The tracking of the prior defined TCO elements is one of the key elements of the final level of Execution collaboration. Deviations will be identified and adjustments will be made. This leads to an Offering optimization of the individual customer TCO cost elements over time.

3.5 SAP HANA Enterprise Cloud: Your Accelerated Path to SAP S/4HANA Cloud

● SAP HANA Enterprise Cloud is a fully scalable and secure cloud offering delivered by SAP with a comprehensive support model. ● We provide our customers with unmatched SAP HANA expertise, SLAs that span the entire application and infrastructure stack, a full menu of functional and technical managed services, and all the control you would expect to have on-premises but, in a private managed environment.

SAP HANA Enterprise Cloud empowers organizations to achieve business goals, accelerate growth and innovation, drive IT and business transformation, quickly deliver business outcomes, and reduce operating risk. Whether you're moving a single application to the cloud, or your entire digital core, SAP HANA Enterprise Cloud can address your business and IT operating needs.

Acknowledged as the standard for running SAP HANA in the cloud, SAP HANA Enterprise Cloud is the only solution that delivers a comprehensive, coordinated, end-to-end approach and suite of managed services to unlock the full value of SAP HANA. SAP HANA Enterprise Cloud drives:

● Innovation at your own pace. ● An adaptive, scalable operating model. ● Reduced time and cost to go-live. ● A guided path, for our customers, to move from an on-premise environment to a cloud-ready state. ● A fully managed environment with the highest level of availability, security and performance guarantees.

We partner with you to create a deployment approach that's tailored to reduce risk and help you achieve business goals. Our approach is based on:

Your Technical Guide Advanced System and Landscape Analysis PUBLIC 21 ● Our SAP HANA cloud expertise. ● The SAP HANA Enterprise Cloud reference architecture. ● Direct integration with SAP Development and Innovation. ● A fully adaptable, customized private cloud solution. ● Total integration across SAP HANA-based applications and related solutions. ● Flexible, pre-built services for modular, rapid deployment. ● A coordinated and flexible suite of managed services.

SAP HANA Enterprise Cloud empowers you to control cost and risk, so you can focus on value, growth, innovation, and achieving your digital future.

Your Technical Guide 22 PUBLIC Advanced System and Landscape Analysis Legal Disclaimer

The information in this document is not subject to your license agreement or any other service or subscription agreement with SAP. Previews or any related presentation and SAP's strategy and possible future developments, products, platforms, directions, and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information is not a commitment, promise or legal obligation to deliver any material, code, or functionality. This information is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in the document, except if such damages were caused by SAP´s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward- looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

Your Technical Guide Legal Disclaimer PUBLIC 23 sap.com/ TransformationNavigator

to access the SAP Transformation Click HERE Navigator session of this document.

© 2018 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. The information contained herein may be changed without prior notice.

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SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies.

Please see https://www.sap.com/about/legal/trademark.html for additional trademark information and notices.

THE BEST RUN HEALTHCARE_TEMPLATE | SAP | PUBLIC 2020-06-24

Your Transformation Guide SAP Transformation Navigator

to access the SAP Transformation Click HERE Navigator session of this document. company. All rights reserved. affiliate

THE BEST RUN 2018 SAP SE or an SAP © Content

About This Document...... 3

1 Basic Transition Scenarios and License Policies...... 4 1.1 Basic Transition Scenarios...... 4 1.2 License and Subscription Policies...... 6

2 Transition Heatmap and Prioritization...... 8 2.1 Transition Types and Services...... 8 2.2 Transition Heatmap...... 10 2.3 Licenses and Subscriptions for Your Target Product Map...... 11

3 Planning, Timeline and Commercials...... 16 3.1 Conversion Versus Greenfield Decision ...... 16 3.2 Starting Point Determination and Selection of The Migration Path ...... 18 3.3 Proposal for The Next Steps – Leverage Complementing Tools and Services...... 20 3.4 Service Offerings by Partners...... 21

Your Transformation Guide 2 PUBLIC Content About This Document

● The Transformation Guide aims to help customers move from seeing the need for digital transformation to starting the journey. ● It summarizes the output of the SAP Transformation Navigator self-service tool from the transformation perspective. A business guide and a technical guide are also available to comprehensively address all stakeholder needs. ● Moving to execution, the Transformation Guide starts with overall transformation scenarios and SAP services, summarizes your transition heatmap and prioritization, and outlines the planning, timeline and commercials going forward. ● Also, it lists some of the key partner offerings available.

In this digital economy, it’s winner takes all, and early movers are typically the winners. But, there’s a big difference between understanding the need to move, and knowing where to go – with the SAP Transformation Navigator we offer a comprehensive self-service tool to start the journey.

This transformation guide summarizes all information and decisions you have made in the SAP Transformation Navigator self-service tool, but enriches them with relevant overall SAP information, and an overview of the follow up work that we've seen useful in many customer cases.

The storyline starts from a strategic perspective, summarizes the need for action, and outlines the necessary follow-up work.

Transition Scenarios Starting from SAP’s overall transition scenario experience, relevant service and License Policies frameworks can help build the journey for your company. In addition, understanding overall license policies is included to help set the framework.

Your Transition Based on the selected product map and the associated product recommendations, Heatmap and a heatmap of the necessary transitions is generated taking underlying transition Prioritization types into account. License and subscription changes are outlined, with the applicable respective policies.

Outline Planning, Given your company’s implementation and data center policies, additional steps Timeline and are needed to estimate the effort, and to sequence the phasing of the journey Commercials Going ahead. These steps lead to a full commercial picture and proper implementation Forward plan.

We are looking forward to the discussion with you on your journey.

Your Transformation Guide About This Document PUBLIC 3 1 Basic Transition Scenarios and License Policies

1.1 Basic Transition Scenarios

Here is a broad list of the basic transition scenarios:

● Cloud Adoption: Leverage LoB Cloud solutions (HR, Supply Chain, Sales, and so on). ● Innovation Platform Adoption (Leonardo, SAP Cloud Platform). ● Digital Core: Early establishment of S/4HANA as basis for further innovation. ● Instance Consolidation. ● Alternative paths / sequencing option (should be assessed when reshaping the landscape)

Description ● When assessing different adoption paths, many assessments are needed to consider these factors: Early value realization, cost & complexity of transition, risk, and others. ● For adopting LoBs to the cloud and customizing solutions, consider these options: SAP Marketing Cloud, SAP SuccessFactors suite, and SAP Ariba. ● For a customer service innovation strategy, consider the rapidly growing innovation options available on SAP Cloud Platform that address predictive analytics, big data, IoT, and more.

Your Transformation Guide 4 PUBLIC Basic Transition Scenarios and License Policies ● Depending on the maturity of your existing ERP solution, it might make sense to establish S/4HANA early as the digital core for further innovations. ● If your current landscape is highly fragmented, it may be best to consider instance consolidations or SAP Central Finance as your innovation priorities.

Further ● The SAP Transformation Navigator gives recommendations. for all transition scenarios. Information ● SAP produces references on industry architecture, which outline the typical target architecture of each industry.

Effort of ● Transformation is a core element of an overall IT strategy, and therefore will require that Customer Side the organization gets fully aligned in delivering the business value. The work involved will depend on the scope of the transformation.

Description ● Moving towards a new solution landscape is basically a large set of single transitions made over time. ● There are four major types of transitions : ○ Upgrade ○ Conversion ○ Merge / Data transfer ○ Process transformation / New implementation ● The transition type that a business is best suited for depends not only from the current and target solution, but other customer-specific factors: ○ Conversion is desirable if the current solution still largely fulfills future business requirements. ○ A new implementation may be best if there's a clear desire to implement a new business model and new processes that can't be fulfilled easily in the current system.

Further ● Analyze current solution (including custom extensions and modifications) with regards Information to compatibility of target solution and business requirements. ● For more information, see this best practices document Elements of designing a Transition Roadmap to SAP S/4HANA

SAP DBS ● SAP Value Assurance service packages for SAP S/4HANA covers planning and Service foundational implementation for end-to-end setup, service, and support. Offering

Your Transformation Guide Basic Transition Scenarios and License Policies PUBLIC 5 ● The big picture can be assessed by utilizing SAP Advisory Services which provide support across the entire innovation lifecycle with a unique combination of business, industry and SAP skills.

1.2 License and Subscription Policies

● We provide license information for recommended products, based on the currently used products and the selected additional capabilities. ● To move from a current product to a recommended product, we have conversion policies that simplify the transition under commercial and formal aspects. ● For each recommendation to replace a current product, we show the general policies available, which may be used in your individual landscape and license situation.

Moving to an SAP S/4HANA-centric product map may have an impact on your existing license and subscription agreements. We offer you transparency, and simple, flexible, and fair rules to accelerate your transformation projects and adapt your SAP application landscape to your evolving business requirements.

SAP S/4HANA Customers who have previously licensed a classic solution, which now has a Product Conversion corresponding S/4HANA version, may use their previous investment in the classic Policy solution to obtain a previous investment credit toward the corresponding license of the new S/4HANA solution.

SAP S/4HANA Customers who have previously licensed classic solutions, may now take their entire Contract investment in the classic solutions, and obtain a previous investment credit towards the Conversion Policy new S4H Solutions via the new S/4HANA Contract.

Your Transformation Guide 6 PUBLIC Basic Transition Scenarios and License Policies SAP cloud and on- The SAP cloud and on-premise extension models give customers an opportunity to premise extension replace existing on-premise licenses and maintenance payments with new cloud model subscriptions or other on-premise solutions from SAP. Further information about the SAP cloud and on-premise extension models can be found on the SAP Support Portal. Your SAP account executive will advise you on the commercial options hereunder for your landscape transition.

Compatibility Packs If you want to move from SAP ERP to SAP S/4HANA with simplified engines completely, the foundation license for SAP ERP is simply replaced with the license for SAP S/4HANA Enterprise Management. However, if you run business scenarios that still require some traditional business suite solutions, compatibility packs allow you to use certain traditional SAP software solutions for a specified period of time to simplify the transition to SAP S/4HANA.

For details about the scope and licensing of compatibility packs in SAP S/4HANA, please refer to SAP Note 2269324.

SAP HANA license For SAP products deployed on-premises or under the private cloud option that run on SAP HANA, an SAP HANA runtime or full-use license may be required.

For SAP products deployed in the cloud that run on SAP HANA, no separate SAP HANA runtime or full-use license is required. The usage right is included in your subscription.

If your SAP S/4HANA-centric landscape requires a set of software licenses and subscriptions, we will give you an overview of required licenses and subscriptions to simplify the engagement with your SAP account team. Please note that additional software licenses or subscriptions may be needed for users or additional technical products. Your SAP account executive will advise you on the commercial options specific to your landscape transition.

Your Transformation Guide Basic Transition Scenarios and License Policies PUBLIC 7 2 Transition Heatmap and Prioritization

2.1 Transition Types and Services

The following shows the transition types and available services for all product transitions.

Description of Transition Types

Upgrade Classical upgrades follow a highly standardized and automated approach.

Example: Upgrade from SAP PI to SAP PO

Conversion During conversions, most data and configuration structures are preserved when moving from the current to the target product. Specific conversion steps and procedures must be applied before or during the conversion.

Example: Conversion from SAP ERP to SAP S/4HANA

Example: Conversion from SAP BW to SAP BW/4HANA

Data Transfer / If a functionality is transferred from one product to another, this transition type uses Merge a specific approach for taking over most of the old code, configuration, and data.

Example: Data transfer from APO-PP/DS to SAP S/4HANA (Manufacturing)

Process Process transformation implies a re-implementation of business processes to be Transformation / Re- adopted. These implementations can be based on reference architectures, best Implementation practices, and model companies (plus industrialized loading of data).

Example: Process transformation from SAP CRM Marketing to SAP Commerce Cloud

Example: Process transformation from SAP CRM, Web Channel to SAP Commerce Cloud

New Access Type / When moving to a new platform, some current application parts and technologies are Discontinued replaced by others. If the current application parts and technologies don't contain Content the business data, transition efforts are generally less. An example would be discontinued analytics models.

Example: Discontinued content when moving from SAP HANA Analytics for ERP to SAP S/4HANA (embedded analytics)

Example: Discontinued content when moving from SAP CRM Sales for iOS to SAP Fiori for SAP CRM

Context-Specific This transition type depends on the capabilities you're using.

Your Transformation Guide 8 PUBLIC Transition Heatmap and Prioritization Service Fo­ Industry Recommended Transition cus Relevance Current Product Product Type Services

Advisory SAP Analytics Cloud Envision Service for SAP An­ alytics Cloud

Advisory SAP Analytics Cloud Strategic Advisory Service for Analytics

Implementa­ SAP Analytics Cloud Content Orchestration for tion/Migra­ SAP Digital Boardroom tion

Implementa­ SAP Analytics Cloud Quick-start Service for SAP tion/Migra­ Analytics Cloud tion

Implementa­ SAP Analytics Cloud Quick-start Service for SAP tion/Migra­ Digital Boardroom tion

Advisory SAP BW/4HANA Discovery Workshop for SAP BW4HANA

Advisory SAP BW/4HANA SAP Value Assurance for SAP BW4HANA

Advisory SAP BW/4HANA Strategic Advisory Service for Analytics

Implementa­ SAP BW/4HANA Implementation Service for tion/Migra­ SAP BW/4HANA tion

Implementa­ SAP Cash Applica­ Quick-Start Service for SAP tion/Migra­ tion Cash Application tion

Implementa­ SAP Master Data Implementation Services for tion/Migra­ Governance Master Data Governance tion

Advisory SAP S/4HANA SAP Value Assurance service packages for SAP S4HANA - Details

Advisory SAP S/4HANA SAP Value Assurance service packages for SAP S4HANA - Overview

Implementa­ SAP S/4HANA Implementation of Analytics tion/Migra­ with SAP S/4HANA tion

Implementa­ SAP S/4HANA Implementation of Health tion/Migra­ and Safety for SAP EHS Man­ tion agement

Implementa­ SAP S/4HANA SAP Model Company for tion/Migra­ Central Finance tion

Your Transformation Guide Transition Heatmap and Prioritization PUBLIC 9 Service Fo­ Industry Recommended Transition cus Relevance Current Product Product Type Services

Implementa­ SAP S/4HANA SAP Model Company for tion/Migra­ Connected Manufacturing tion

Implementa­ SAP S/4HANA SAP Model Company for Fi­ tion/Migra­ nance tion

Advisory SAP S/4HANA Cloud Capabilities and Planning Workshop for SAP S4HANA Cloud

Advisory SAP S/4HANA Cloud SAP Value Assurance plan and safeguard service pack­ age for SAP S4HANA Cloud

Implementa­ SAP S/4HANA Cloud Quick-start Implementation tion/Migra­ of SAP S4HANA Cloud for tion Enterprise Management

2.2 Transition Heatmap

This table shows all transitions to recommended products including related transition types.

Current Products / Additional Capabili­ Capabili­ Type Industry ties & Solutions Recommended Products Transition Type ties Priority

Product SAP ERP ● SAP S/4HANA Conversion 6 1

Product SAP Access Control ● SAP Access Control Upgrade 0 1 for SAP S/4HANA

Product SAP Business Informa­ ● SAP BW/4HANA Conversion 0 2 tion Warehouse

Product SAP Predictive Analyt­ ● SAP Analytics Cloud Process Trans­ 0 2 ics formation

Product SAP Lumira ● SAP Analytics Cloud Process Trans­ 0 2 formation

Product SAP Supply Chain ● SAP S/4HANA Cloud Process Trans­ 1 3 Management formation

Product SAP Supplier Relation­ ● SAP S/4HANA Cloud Conversion 6 3 ship Management

Product SAP Supplier Relation­ ● SAP Ariba Procure­ Conversion 2 3 ship Management ment, cloud edition

Your Transformation Guide 10 PUBLIC Transition Heatmap and Prioritization Current Products / Additional Capabili­ Capabili­ Type Industry ties & Solutions Recommended Products Transition Type ties Priority

Product SAP Supplier Relation­ ● Ariba Sourcing, cloud Conversion 1 3 ship Management edition

Product SAP ERP ● SAP SuccessFactors Context-specific 1 3 Employee Central Payroll

Product SAP ERP ● SAP SuccessFactors Process Trans­ 2 3 Employee Central formation

Product SAP HANA, platform ● SAP HANA, platform Stay On 0 0 edition edition

Product SAP Customer Rela­ ● SAP Customer Rela­ Stay On 1 0 tionship Management tionship Management

Product SAP Solution Manager ● SAP Solution Man­ Stay On 0 0 ager

Product SAP ERP ● SAP ERP Stay On 3 0

Product SAP ERP ● SAP Invoice and Context-specific 1 0 Goods Receipt Rec­ onciliation

Product SAP ERP ● SAP Cash Application Context-specific 1 0

Product SAP Master Data Gov­ ● SAP Master Data Stay On 0 0 ernance Governance

2.3 Licenses and Subscriptions for Your Target Product Map

● We provide license and subscription information for the recommended new products based on the currently used products and selected additional capabilities. ● The license and subscription information is preliminary and serves as an orientation. In some cases, additional license materials such as user licenses may be required. ● For comprehensive license and subscription information, and the application of our product and contract conversion policies, or for the SAP cloud and on-premise extension models, your SAP account executives and their teams can consult you in detail.

Your Transformation Guide Transition Heatmap and Prioritization PUBLIC 11 If your recommended product map contains any products beyond the products you are currently using, this section contains a list of these products with the license and subscription information. If you have selected certain capabilities to determine the recommended products, we structure the license and subscription information based on the capabilities.

We assume that the products you are currently using are covered under your existing license and subscription agreements, so we limit license and subscription information to the additional products.

Please note that additional licenses or subscriptions may be required, either for named users or to reflect usage volumes. Your SAP account team will work with you to establish the final set of required software licenses and subscriptions, including a quotation under consideration of the applicable transformation policies.

We provide license information based on the products we recommend based on your currently used products and your business and IT strategies and preferences.

License information for recommended products derived from currently used products

Con­ Prod­ tract uct Cloud Con­ Con­ Exten­ Recommended License Material ver­ ver­ sion Current Product Product (Number)** Units Type sion* sion* Model*

SAP Access Con­ SAP Access Con­ 7018703 Monitored Users License - - - trol trol for SAP S/ 4HANA

SAP Access Con­ SAP Access Con­ 8006024 Monitored Users Subscription - - - trol trol for SAP S/ 4HANA

SAP Business In­ SAP BW/4HANA 7019164 GB of Memory License No No No formation Ware­ house

Your Transformation Guide 12 PUBLIC Transition Heatmap and Prioritization Con­ Prod­ tract uct Cloud Con­ Con­ Exten­ Recommended License Material ver­ ver­ sion Current Product Product (Number)** Units Type sion* sion* Model*

SAP Business In­ SAP BW/4HANA 8006200 Flat Fee Subscription - - - formation Ware­ house

SAP ERP SAP Cash Appli­ 8005289 Transactions Subscription - - - cation

SAP ERP SAP S/4HANA 8007179 FUE Users Subscription - - -

SAP ERP SAP S/4HANA 7018654 Users License Yes No No

SAP ERP SAP S/4HANA 7018653 Users License Yes No No

SAP ERP SAP S/4HANA 7018652 Users License Yes No No

SAP ERP SAP S/4HANA 7018538 Flat Fee License Yes No No

SAP ERP SAP SuccessFac­ 8005136 Users Subscription - - - tors Employee Central

SAP ERP SAP SuccessFac­ 8005138 Users Subscription - - - tors Employee Central

SAP ERP SAP SuccessFac­ 8005141 Users Subscription - - - tors Employee Central Payroll

SAP Lumira SAP Analytics 8006289 Installations Subscription - - - Cloud

SAP Lumira SAP Analytics 8006288 Users Subscription - - - Cloud

SAP Lumira SAP Analytics 8006284 Installations Subscription - - - Cloud

SAP Lumira SAP Analytics 8006283 Users Subscription - - - Cloud

SAP Predictive SAP Analytics 8006115 Users Subscription - - - Analytics Cloud

SAP Predictive SAP Analytics 8006116 Users Subscription - - - Analytics Cloud

SAP Predictive SAP Analytics 8006117 Users Subscription - - - Analytics Cloud

SAP Predictive SAP Analytics 8006118 Users Subscription - - - Analytics Cloud

SAP Predictive SAP Analytics 8006119 Users Subscription - - - Analytics Cloud

SAP Predictive SAP Analytics 8006120 Users Subscription - - - Analytics Cloud

Your Transformation Guide Transition Heatmap and Prioritization PUBLIC 13 Con­ Prod­ tract uct Cloud Con­ Con­ Exten­ Recommended License Material ver­ ver­ sion Current Product Product (Number)** Units Type sion* sion* Model*

SAP Predictive SAP Analytics 8006125 Flat Fee Subscription - - - Analytics Cloud

SAP Predictive SAP Analytics 8006126 Flat Fee Subscription - - - Analytics Cloud

SAP Predictive SAP Analytics 8006127 Flat Fee Subscription - - - Analytics Cloud

SAP Predictive SAP Analytics 8006137 Concurrent ses­ Subscription - - - Analytics Cloud sions

SAP Predictive SAP Analytics 8006138 Concurrent ses­ Subscription - - - Analytics Cloud sions

SAP Predictive SAP Analytics 8006146 Installations Subscription - - - Analytics Cloud

SAP Predictive SAP Analytics 8006147 Installations Subscription - - - Analytics Cloud

SAP Supplier Re­ Ariba Sourcing, 8007883 Users Subscription - - - lationship Man­ cloud edition agement

SAP Supplier Re­ Ariba Sourcing, 8007908 Users Subscription - - - lationship Man­ cloud edition agement

SAP Supplier Re­ SAP Ariba Pro­ 8007891 Spend Subscription - - - lationship Man­ curement, cloud agement edition

SAP Supplier Re­ SAP Ariba Pro­ 8007892 Spend Subscription - - - lationship Man­ curement, cloud agement edition

SAP Supplier Re­ SAP S/4HANA 8007082 FUE Users Subscription - - - lationship Man­ Cloud agement

SAP Supply SAP S/4HANA 8007082 FUE Users Subscription - - - Chain Manage­ Cloud ment

SAP Supply SAP S/4HANA 8005593 Revenues Subscription - - - Chain Manage­ Cloud ment

Your Transformation Guide 14 PUBLIC Transition Heatmap and Prioritization License information for capabilities derived from your business requirements

License Recom­ Recom­ Material Line of Busi­ mended Ca­ mended Prod­ (Num­ Industry ness Business Area pability uct ber)** Units Type

No data availa­ ble.

Columns titled “Contract Conversion”, “Product Conversion”, and “Cloud Extension” indicate the availability of a given “recommended product” under the respective conversion policy or extension model. This information does not represent a recommendation from SAP to apply such policy in your individual landscape and license situation. Your SAP account executive will advise you on the commercial options specific for your landscape transition.

This license material is a base material. Additional license materials are available to reflect volume pricing tiers.

Your Transformation Guide Transition Heatmap and Prioritization PUBLIC 15 3 Planning, Timeline and Commercials

Given the summary and scope of the SAP Transformation Navigator session in the previous chapters, chapter 3 is intended to outline a helpful way forward.

The topics of chapter 3 are selected based on our experience of a very high number of customer planning discussions and are synchronized between the Business Guide, Technical Guide and Transformation Guide. For a complete overview, please refer to the chapter Proposal for The Next Steps – Leverage Complementing Tools and Services in the Transformation Guide.

It is our ambition to give you clear guidance for the overall journey, however, the topic selection and level of engagement are of course the choice of the customer and should follow your individual needs. For all topics we have structured the available tools and services along the following levels:

● Level 0: Self-service ● Level 1: Outside-in expert guidance ● Level 2: Joint planning ● Level 3: Joint execution

You are in the driver seat to select, in any case the topics and levels follow a consistent and synchronized concept and can be combined as required.

3.1 Conversion Versus Greenfield Decision

Goals of Greenfield Vs. Conversion Workshop:

● Discuss differences between greenfield, brownfield and conversions. ● Establish customer goals in S/4HANA adoption. ● Determine what blockers exist to prevent conversion. ● Summarize implications from a business, technology, and transformation perspective.

Your Transformation Guide 16 PUBLIC Planning, Timeline and Commercials Concept For the evaluation of the best transition scenario, six key considerations for the conversion-vs.- greenfield comparison should be discussed with SAP experts. Each of the six criteria influence the decision either in the direction of system conversion or new implementation. If the majority of the answers is located towards the right side of the graphic, a system conversion is recommended. Otherwise, if the majority of the answers is located towards the left side of the graphic, a new implementation is recommended.

Self-Service Use the Transformation Navigator tool to evaluate six questions based upon the customer Offering situation. Use the self-service Readiness Check to determine what conversion would fit.

Outside-In Invest one day of an SAP TQM and/or EOD (Expert On Demand) to review detailed customer Guidance examples of what other peers are doing and reasons why. Conduct a guided discussion on pros and cons of greenfield, brownfield and conversion, and the impact of each. Receive high-level advice based on the customer situation.

Joint Invest two+ weeks in an SAP DBS Value & Implementation Strategy (VIS) service. Start from Planning Readiness Check results of the customer's ECC system. Derive Must-Dos and optional Offering amendments based on the simplification list for the business priorities. Evaluate simplifications and innovations with regards to benefit and complexity. Identify pre-projects. According to the business priorities, the to-be landscape gets defined. Based on this, the architectural impact and transition scenarios, for example conversion vs. greenfield, will be analyzed and a recommendation will be developed.

Joint Invest six+ months in a full implementation of the target state solution. The implementation Execution type depends on the chosen transition scenario, which is either the migration factory project Offering for system conversion or the SAP model company based on the digital theme for a new implementation. SAP DBS can support a customer and partner with the transition to SAP S/ 4HANA using the Value Assurance services. This will ensure a successful transition with minimum customization. Value Assurance provides a safeguarding foundation throughout the project with additional supporting services in the areas of Planning & Design. All SAP services are leveraging the SAP Activate Methodology, which is the innovation adoption framework that expedites SAP S/4HANA implementations throughout the customer lifecycle. It offers ready-

Your Transformation Guide Planning, Timeline and Commercials PUBLIC 17 to-run digitized business and technology processes, guided configuration, and next-generation methodologies.

3.2 Starting Point Determination and Selection of The Migration Path

Goals of Starting Point Determination Workshop:

● Discussion of typical S/4HANA transition scenarios and the five pillars of where to start. ● Establish customer goals in adopting the digital core. ● Discuss how other customers in similar situation have attacked the problem. ● Practice risk / effort / value mapping. ● Summarize implications of target path from a business, technology, and transformation perspective.

Concept These are the five principles to define the default approach, of course to be checked against individual pre-conditions and priorities:

1. Cloud First - Cloud moves first. Strip out cloud modules first, then move to SAP S/4HANA. 2. Central Finance - If cFIN is part of the desired architecture, start there. 3. S/4 Conversion Decision - Conversion is used if a technical project needs to be separated from a business project.

Your Transformation Guide 18 PUBLIC Planning, Timeline and Commercials 4. S/4 as a Consolidation Platform - Move first your ECC instance into S/4HANA, then consolidate the other ECC instances into this one. 5. Legal Entity as Slicing - Within one instance, a legal entity used for phasing the project.

Self- Analyze the decision stories for each of the major archetypes: Service ● Low Risk: Leads to separate instances with separate go-lives when timing is right. Design Offering decisions are based on a needs basis, with localizations taking place in individual instances. Typically one development system and multiple quality and production. ● Low Risk & Consolidation: A major beverage distributer is going through a complete IT transformation. The end state solution consists of two instances with a North America (NA) instance and a “Rest of World” end state design. ● Big ROI: A large multi-national food producer currently has an existing footprint where over 50% of the revenue is on an old SAP ERP system where there is no direct path to SAP S/ 4HANA. ERP consolidation is a key driver, and a single global instance is the end state. The global instance for the large company will be designed for all businesses. This largest instance has the largest ROI and is the starting point for an SAP S/4HANA transformation. The other systems will be merged into the end state at a later time. ● Custom Solutions: Does not yet exist in SAP S/4HANA, thus putting a path to SAP S/ 4HANA must be put on hold until custom code can be adapted or desired functionality is available in SAP S/4HANA. Coke bottlers need direct store delivery before pressuring a path to SAP S/4HANA. ● Cloud First: SAP S/4HANA Cloud fits the functional requirements of this system and instances will be migrated to SAP S/4HANA Cloud as systems and localizations are ready.

Outside-In Invest one day for a guided discussion per default principle and a joint walk through of check Guidance questions. Use the 5-principle-start-point framework to explain the overall fit of the default guidance, and create a shortlist of areas that need further evaluation.

Joint Invest two to six weeks in an SAP DBS Innovation Strategy & Roadmap (ISR) service. The ISR Planning service helps customers to develop a multi-year strategic roadmap which addresses their digital Offering transformation needs. Starting from business priorities, it identifies key innovations applicable to the specific customer situation. Depicting the long-term target architecture helps to prioritize proposed enablers and initiatives. The most appropriate transition scenario will be evaluated. Taking guidance from change drivers (business and IT), enablers are being identified and a target architecture is composed. A prioritization of initiatives is driving the future 3- to 5-year roadmap.

Next steps can be the Migration Planning Workshop (MPW) if system conversion to SAP S/ 4HANA is chosen as transition scenario. For a greenfield approach, the Transition Planning for New Implementation (TNI) service is available.

Joint Invest six+ months in a full implementation of the target state solution. The implementation type Execution depends on the chosen transition scenario, which is either the migration factory project for Offering system conversion or the SAP model company based on the digital theme for a new implementation. SAP DBS can support a customer and partner with the transition to SAP S/ 4HANA using the Value Assurance services. An SAP prime project execution is an option. This will ensure a successful transition with minimum customization. Value Assurance provides a safeguarding foundation throughout the project with additional supporting services in the areas of Planning & Design. A key service for the implementation is the Data Migration Design service. This service supports the preparation of your technical transformation or data migration, and

Your Transformation Guide Planning, Timeline and Commercials PUBLIC 19 provides a valid basis to plan the landscape transformation to SAP S/4HANA in the next level of detail.

3.3 Proposal for The Next Steps – Leverage Complementing Tools and Services

● Complementing tools and services are structured along eight topics, based on the customer discussion experience. ● Self-service offerings are available for instant usage. ● For each topic, SAP offers clear guidance, but you are in the driver seat regarding the depth of analysis and level of engagement. ● The engagement levels are structured in self-service, outside-in expert guidance, joint planning, and joint execution. ● Start with the self-services now! ○ Learn how the Adoption Starter Program can help you to design your move to S/4HANA in just 90 days https://support.sap.com/en/tools/upgrade-transformation-tools/s4hana-adoption-starter.html

The Business Guide, Technical Guide, and Transformation Guide have given you an overview about the most common questions that need to be answered to plan your transition to a SAP S/4HANA-centric landscape.

As a concrete next step, we recommend using now the self-services and outside-in guidance. The offerings will help you getting insights into the topics. At the end of the exercise, you will have established a first plan and have clarity where additional work is required to deepen your understanding. SAP services will help you on this journey.

Your Transformation Guide 20 PUBLIC Planning, Timeline and Commercials If you need help, please contact your SAP service representative. If you aren't sure who to contact, please get in touch with one of our offices nearest you: https://www.sap.com/about.html

3.4 Service Offerings by Partners

SAP partners can provide services to assist your company's digital transformation. Each of the various services is designed to work seamlessly with your SAP deployment.

The following is an overview of SAP’s Global Strategic Service Partners and a summary of their services. For a complete list of all SAP partners covering specific industries, regions or solutions, access the SAP Partner Finder: https://partneredge.sap.com/content/partnerfinder/search.html

Partner Digital Transformation Services Summary Links for Details

Accenture solves our clients' toughest challenges by providing un­ More Details matched services in strategy, consulting, digital, technology and opera­ tions. Beyond the SAP Transformation Navigator engagement, Accenture offers services to enable your digital transformation journey with SAP S/ 4HANA and SAP Leonardo at the core. With unique industry solutions and value accelerators, Accenture can help your business transform across all functions and deliver value and innovation using analytics, cloud, and mobility.

Atos focuses on generating value for SAP S/4HANA digital transforma­ More Details tion, while delivering operational and financial efficiencies. Through pre- configured industry solutions and customer experience, is ready to ensure your use of SAP S/4HANA creates fast, genuine and differentiat- ing business advantage. We combine our strength in digital consulting, implementation, integration, application, appliance, and infrastructure services to bring you unique end–to-end solutions with built-in security. These end-to-end capabilities leverage our deep industry expertise, large partner eco-system and innovative IoT, Cloud, Mobility, Analytics, AI/ML and Automation assets, to help you accelerate your digital journey and drive business

Your Transformation Guide Planning, Timeline and Commercials PUBLIC 21 Partner Digital Transformation Services Summary Links for Details

Building on its strong 50-year heritage and deep industry-specific exper­ More Details tise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Beyond the SAP Transformation Navigator engagement, Capgemini’s “Highway To S/ 4HANA” offer provides a full suite of services to enable your digital trans­ formation journey with SAP S/4HANA at the core. With “Highway To S/ 4HANA”, Capgemini helps clients to craft a tailored approach at every stage of the S/4HANA adoption journey using various tools and accelera­ tors: assessment, pre-configured scenarios, process mining, deployment options, solution options, functional scope, pre-checks, and custom code analysis.

Cognizant is one of the world's leading professional services companies, More Details transforming clients' business, operating and technology models for the digital era. Beyond the SAP Transformation Navigator engagement, Cog­ nizant offers follow up services to enable your digital transformation jour­ ney with SAP S/4HANA at the core. The key differentiator is our unique industry-based, consultative approach which helps clients envision, build and run more innovative and efficient businesses leveraging SAP prod­ ucts and tools.

Deloitte provides industry-leading audit, consulting, tax and advisory More Details services to many of the world’s most admired brands, including 80 per­ cent of the Fortune 500 and more than 6,000 private and middle market companies. Beyond the SAP Transformation Navigator engagement, De­ loitte offers services to help you with all phases of your digital transfor­ mation powered by the S/4HANA digital core whether in a public or pri­ vate cloud, or behind your firewall. Deloitte offers industry specific strat­ egy, assessments, pre-configured best practice templates to comple­ ment the SAP Model Company, SAP Leonardo innovation services, and complete S/4HANA migration consulting.

DXC Technology helps clients harness the power of innovation to thrive More Details on change and our deep experience gives us a clear and confident vision to help clients navigate the future. Beyond the SAP Transformation Navi­ gator engagement, DXC offers follow up services to enable your digital transformation journey with SAP S/4HANA at the core. DXC works with clients to create and execute a roadmap that starts with the business case and goes through solution design and build to ongoing digital opera­ tions with intelligent improvement.

Your Transformation Guide 22 PUBLIC Planning, Timeline and Commercials Partner Digital Transformation Services Summary Links for Details

EY is a global leader in professional services ranging across assurance More Details (audit), tax, transaction and advisory services. Beyond the SAP Transfor­ mation Navigator engagement, EY offers a wide range of services to ena­ ble your digital transformation journey with SAP S/4HANA at the core. The key differentiator is our packaged offerings such as Agile Finance and Agile Supply Chain, that accelerate the entire customer engagement lifecycle from business case development to implementation to value re­ alization leveraging SAP products and tools.

HCL is recognized as a global SAP implementation leader, by leading ana­ More Details lysts like Gartner and IDC. As a global SAP implementation partner and with 9000+ SAP experts, we offer end-to-end SAP offerings and innova­ tive industry solutions. HCL has developed a value-based program from our in depth analysis of the new technology and the feedback from our clients to make their SAP HANA and SAP S/4HANA journey non-disrup­ tive and outcome based. HCL helps clients migrate to SAP S/4HANA to start realizing the initial benefits offered by the speed and simplification that is inherent with the new technology and platforms such as SAP Cloud Platform

IBM Global Business Services consultants help organizations create More Details new sources of value, digitally reinvent operations for greater efficiency, and drive growth. Beyond the SAP Transformation Navigator engage­ ment, IBM offers follow up services to clients to enable their complete digital transformation journey with S/4HANA at the core. Key highlights include IBM S/4HANA Value Accelerator service, where our IBM HANA Impact Assessment and approach for business case creation are key parts, and multiple industry accelerators, based on our IBM Industry IM­ PACT solutions, to complement SAP’s Model Company and Value Assur­ ance Packages to speed up time to value.

Infosys is an Indian multinational corporation that provides business More Details consulting, information technology and outsourcing services. Beyond the SAP Transformation Navigator engagement, Infosys offers follow up serv­ ices to enable your digital transformation journey with S/4HANA at the core. Key service offerings include value assessment, business case de­ velopment and Infosys built S/4HANA migration tools and accelerators to ensure customer success.

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Your Transformation Guide Planning, Timeline and Commercials PUBLIC 23 Partner Digital Transformation Services Summary Links for Details

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Tata Consultancy Services is an IT services, consulting and business IT Services solutions organization that partners with many of the world's largest Consulting businesses in their transformation journeys. Beyond the SAP Transfor­ mation Navigator engagement, TCS offers follow up services to enable your digital transformation journey with SAP S/4HANA at the core. A full spectrum of services offered including advisory & assessment, proof of concept, deployment, value added service & support to accelerate your business innovation and process improvement leveraging SAP products and tools.

Tech Mahindra is a federation of companies, bound by one purpose – to More Details Rise. Inspired by this spirit, our legacy and values, our goal to always pos­ itively impact our partners, stakeholders, communities and the world at large, remains unshakeable. Application transitions are costly affairs and often keep enterprises from taking the next big step towards their busi­ ness transformation goals. Epselon framework enables business and IT users with right insights, brings automation and helps in unlocking values from existing SAP investments. Epselon enables customers to swiftly embark on SAP Digital Transformation journey. It provides enterprise baseline information consisting of process complexities, usage and in­ sights to SAP EhPx, HANA Database and S/4HANA. With Epselon, cus­ tomers can choose their transformation path while being able to accu­ rately plan and envisage impacts to current application support.

T-Systems supports its customers in migrating their ERP systems and More Details creating the optimal SAP transformation strategy.

Big data analysis, social media, mobile apps, and global networks are changing the business world: Adaptability and responsiveness have never been more critical to a company's success. Ever shorter innovation cycles are constantly redefining the requirements for organization, struc­ ture and business processes. Without cloud-based IT services, this kind of momentum could not be realized in companies. With the applications and services of the market leader SAP, companies can control business in real time, optimize data analysis, and extend business models. As a long-standing and certified SAP partner, T-Systems offers an end-to-end range of highly standardized solutions for ERP, Cloud, SAP S/4HANA, and SAP Leonardo, among others.

Your Transformation Guide 24 PUBLIC Planning, Timeline and Commercials Partner Digital Transformation Services Summary Links for Details

Wipro is a leading global information technology, consulting and busi­ More Details ness process services company focused on harnessing the power of the latest emerging technologies to help our clients adapt to the digital world and make them successful. Beyond the SAP Transformation Navigator engagement, Wipro offers follow up services to enable your digital trans­ formation journey with SAP S/4HANA at the core. Key highlights include impact assessment, advisory and implementation services for transition to S/4HANA and a safe passage framework to move to the Cloud.

Your Transformation Guide Planning, Timeline and Commercials PUBLIC 25 Legal Disclaimer

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