SAP S4 HANA in Automotive SAP S4 HANA

SAP S/4 HANA in Automotive SAP S/4 HANA Materials Management and Operations and Transition to SAP S/4 HANA Frank Wagner, Juergen Helmle SAP SE – Germany h an image it w ly n o e d li s le Use this tit

SAP S/4 HANA in Automotive: Agenda SAP S/4 HANA for Automotive SAP S/4 HANA – Transition Scenarios (overview) SAP S/4 HANA for Automotive (Outlook) SAP S/4 HANA – System Conversion (Details) SAP S/4 HANA – More Information Q&A © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 2

SAP S/4 HANA in Automotive: Agenda SAP S/4 HANA for Automotive SAP S/4 HANA – Transition Scenarios (overview) SAP S/4 HANA for Automotive (Outlook) SAP S/4 HANA – System Conversion (Details) SAP S/4 HANA – More Information Q&A © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 3

SAP’s Next Big Thing S/4 HANA ERP R/3 R/2 1979 ©© 2015 SAP SE or an SAP affiliate company. All rights reserved. 1992 2004 2015 Customer 4

SAP S/4 HANA Our Next-Generation Business Suite SAP S/4 HANA Enterprise Management build the next-generation business suite » » » Innovative in-memory Database New architecture and data models Renewed applications New UI technology Cloud & on-premise deployment models Natively integrated © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 5

Where does complexity hide in enterprises? Scattered information Batch orientation Technology limitation Complex decision making Complex business processes Complex technology “Large global organizations have created so much complexity that businesses often struggle to bring good ideas to the marketplace profitably. ” Large organizations can spend between 40% and 80% of their time on non-valueadded activities 73% percent of executives said the complexity of data is the largest IT challenge (Mc. Kinsey, 2014) (BCG, Complexity Report) (Forrester, 2013 report) 10. 2% or $237 B* of profits lost by top 200 global companies due to hidden costs of complexity *Global Simplicity Index, 2013 ©© 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 6

SAP S/4 HANA – The Customer Has The Choice SAP S/4 HANA On-Premise Edition Traditional licensing with customer control of deployment and maintenance SAP S/4 HANA Cloud enterprise edition SAP S/4 HANA Cloud marketing edition Cloud project services edition SAP S/4 HANA on-Premise is already available with the combination of Suite on HANA with an exchange innovation add-on for Simple Finance. As of Q 4/2015 with integrated Simple Logistics. Subscription licensing with deployment in the private cloud, maintained by SAP The scope of this solution is close to a full ERP scope (Business All in One scope) however focusing on supporting standard scenarios. Subscription licensing with deployment in the private cloud, maintained by SAP Providing simplified key scenarios with a clear focus and priority on the cloud qualities, which are guaranteed across all UIs and all processes to ensure that a true Saa. S solution is offered. © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 7

Evolution to S/4 HANA Enterprise Management 4. 7 ERP 2004 ERP 6 Eh. Px ERP 6 Eh. P 8 ERP 6 Eh. P 7 ERP 6 Eh. P 8 Any DB HANA s. Fin 1. 0 s. Fin 2. 0 s. Fin 3. 0 SAP ERP 6. 0 S 4/HANA Enterprise Management Financials Logistics …. Enterprise Management SAP Net. Weaver Any DB © 2015 SAP SE or an SAP affiliate company. All rights reserved. HANA Customer 8

SAP Business Suite, powered by SAP HANA is primetime in 79 countries in small, medium & large companies 841+ Live customers >53% through Partners 170+ active Partners 1858+ go-live projects 31% 66% <100 users 100 – 10. 000 users 3% >10. 000 users in all 26 industries … … 185 in HANA Enterprise Cloud (HEC) ©© 2015 SAP SE or an SAP affiliate company. All rights reserved. as of May 13 th Customer 9

One central Deployment Options Central Finance – Finance harmonization across heterogeneous landscapes Ø Real-time replication of financial (FI) and management accounting (CO) postings from several source systems into a central simple finance system Ø Document drill back to the original FI document in the source system Ø Replication of cost objects (production orders, product cost collectors, and internal orders) from source systems to the central system Ø Mapping functionality for harmonization of master data before posting into central finance Ø Single Source of Truth for Financial Data for reporting and planning n. Benefit from SAP Simple Finance while not touching your existing system landscape © 2015 SAP SE or an SAP affiliate company. All rights reserved. Ø Access to existing master data mapping from SAP Master Data Governance (optional) Customer 10

SAP HANA, our great simplifier for enterprise applications SAP HANA In-memory platform 2011 SAP Business Warehouse powered by SAP HANA Real-time analysis Real-time reporting 2012 ©© 2015 SAP SE or an SAP affiliate company. All rights reserved. SAP Business Suite powered by SAP HANA Real-time business OLAP and OLTP together SAP HANA Enterprise Cloud for SAP Business Suite on SAP HANA 2013 SAP Simple Finance powered by SAP HANA Instant financial insight No aggregates Single source of truth 2014 Simplified data model New user experience Advanced processing Choice of deployment 2015 Customer 11

SAP S/4 HANA Suite Introducing the next generation core and lines of business solutions for the digital economy SAP S/4 HANA HUMAN RESOURCES SAP S/4 HANA MANUFACTURING SAP S/4 HANA SUPPLY CHAIN SAP S/4 HANA ASSET MANAGEMENT The Digital Core SAP S/4 HANA FINANCE Enterprise Management SAP S/4 HANA SALES SAP S/4 HANA SERVICE © 2015 SAP SE or an SAP affiliate company. All rights reserved. SAP S/4 HANA MARKETING SAP S/4 HANA SOURCING & PROCUREMENT SAP S/4 HANA RESEARCH & DEVELOPMENT Customer 12

SAP S/4 HANA Enterprise Management » SAP S/4 HANA Materials Management & Operations comprises generally the functionality covered by ECC 6. 0 x logistics » Major Simplifications in § Inventory Management Logistics The Digital Core Financials HCM § Material Requirements Planning Logistics General (LO) Product Lifecycle Management (PLM) Sales and Distribution (SD) Materials Management (MM) Logistics Execution (LE) Quality Management (QM) Plant Maintenance (PM) Customer Service (CS) Production Planning & Control (PP) Project Management (PS) Environment, Health & Safety (EHS) Others: Global Trade Management, Compensation Management, Agency Business, … § Capacity Planning § Sales and Distribution § Procurement » Complemented by capabilities of § SCM § CRM Industry specific Functions: § PLM § SRM » Supporting digital trends like Internet of Things, Business Networks, etc. Discrete Industries – Automotive, High Tech, IM&C, A&D, Mill Products, Mining, Chemicals © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 13

SAP S/4 HANA Enterprise Management Key innovations 1511 mapped to Product Map Key Innovations 1511 Procurement Inventory Management Material Valuation Material Requirements Planning Available to Promise Capacity Planning Order Mgmt. & Billing Industry to Core Accelerated Financial Close Universal Journal & Central Finance DIMP is the most widely used industry solution within SAP. This solution is heavily used by cross industry customers. (25 % Inside / 75 % outside leading industries) Therefore SAP´s strategy has to support these Endto-End Processes via SAP S/4 HANA. © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 14

Industry Value Chains are transforming SAPs Strategy: Make industry leading processes accessible for everybody in S 4/HANA (Pick from the buffet) Today You see You think You need Engineering plastics and polyurethanes in the BMW i 3 Fact: BASF runs DIMP JIT in an single instance today Source Oil & Gas Service Companies are renting out heavy equipment (Equipment Tools Management) IS OIL & IS DIMP (today Side by Side ) need to be on a single instance (future). Equipment Value several Bill USD Source Future Concept: Meyer Werft is using Lean Manufacturing concepts like JIS today for Shipbuilding Source Transformation in full motion: Google is planning to develop cars Source ©© 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 15

SAP S/4 HANA – Synergies & collaboration in 3 dimensions Innovative Cross Industry Business Processes for: ■ Automotive; Aerospace & Defense; Engineering, Construction & Operations; Industrial Machinery & Constructions; High Tech ■ Processes: ˗ ˗ ˗ ˗ ˗ Just in Time / Just in Sequence Processing Advanced Batch Management Lean Manufacturing and Logistics with Kanban Material Interchangeabilities and Succession Automated Credit Memo Processing Scheduling Agreement Processing Vehicle Management System Build-to-Order Optimization Automated Earned Value Management And many more Innovation in Architecture ■ Throughput ■ Scalability ■ Principle of one ■ SAP Fiori Innovation in business processes ■ TCO reduction ■ Throughput in inventory management and valuation ■ MRP on HANA ■ ATP ■ Rebate processing © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 16

Key Innovations in logistics Material Requirements Planning Material Valuation Fast MRP run, and new working model for MRP controllers based on decision support. Principle of One, scalable material valuation capabilities, utilizing Material Ledger, that way customers can use multi-currencies, valuation methods per different accounting laws like GAAP. Inventory Management Order Management & Billing Simplified data model resulting in increased through-put, flexible analytics at the most granular level. Enable monitoring of end-to-end order-to-cash process & take actions for any exceptions, information on the exceptions to resolve the issues, lower TCO due to data model simplification, support for the most recent versions of business features such as FSCM Credit Management, GTS Foreign Trade, SFIN Revenue Accounting, new analytical capabilities. Available To Promise & Backorder processing Procurement Enhance ERP by advanced ATP capabilities in APO, new coding to make it better, innovation benefit as functionality will be refreshed. Increased efficiency in the Procure-to-Pay processes, new Analytical Apps & Spend KPI’s, Ariba Network Integration for PO Order and IV. Capacity Planning Industry to Core New deployment option for bringing PP/DS on ERP, reducing integration efforts, allowing seamless master data & UI harmonization. Discrete industries functionalities such as Just-in-Time & Just-in. Sequence available for wider cross industry adoption through the Core © 2015 SAP SE or an SAP affiliate company. All rights reserved. This is the current state of planning and may be changed by SAP at any time. 17

Material Requirements Planning Business Challenges » » Increasing customer service Low inventory accuracy Revenue losses due to stock-outs On-time delivery performance Business Benefits » Fast Performance by up to factor 10 / Memory footprint reduction by factor 5 » Role-based, KPI-driven solutions are proactively proposed for users to consider » System analyzes and does Impact Analysis of the entire material flow in real time and identifies disruptions in the material flow » Run on any device Capabilities Business Benefits » » » Clear visibility across the material flow » Real time inventory monitoring and automating the creation of procurement proposals Prioritized view on material flow issues Real-time alerting System-generated solution proposals MRP can run sub-daily and as frequently as required Demand information is propagated faster through the supply chain © 2015 SAP SE or an SAP affiliate company. All rights reserved. Proactive decision making in response to changing demand Flexible tailoring of available capacities and receipts to meet required quantities Customer 18 18

How SAP S/4 HANA helps Flexible Process Automation (Principle of code push down in MRP) Dispatcher App-Server DB-Server Read planning file entries For every planning file entry Read planned orders Read purchase requisitions Read purchase orders Read production orders Read sales orders Read stock transfer demand Update purchase requisitions 1. 300 lines of code © 2015 SAP SE or an SAP affiliate company. All rights reserved. App-Server HANA Read planning file entries For all planning file entries with the same low-level code Plaf Read Plaf Afpo Eban Mdbs Plan set 2 set 3 Merge + Split Insert Resb Plaf Eban Vbbe Mdup Plauf Eban Read. E Ekpo ban Vbbe Ekko Merge + Split Plan set 1 Caufv MRP planning logic Update planned orders Dispatcher ABAP post-processing (e. g. determine release strategy) In the classic implementation, the application server calls the database server many times to read a lot of data. This data is then transferred from the database server to the application server. All tables are read sequentially one after another. In the SAP S/4 HANA Implementation, many tables are read in parallel using the parallelization capabilities. The data is not transferred back to the application server but used to compute material shortages directly in the database server. ~90 lines of code Customer 19

MRP Performance Example data from a customer Po. C Runtime in hours 60 55, 5 Scenario 1 Data volume increase 50 40, 2 40 30 17, 5 20 10 4, 5 2, 5 Scenario 1 Scenario 2 4, 3 1, 5 Materials 44, 8 17, 5 5, 5 1, 0 3, 9 1, 5 Mio. Thereof configured materials 117. 000 Inserted purchase requisitions 1, 0 Mio. Inserted planned orders 2, 3 Mio. 10, 4 Mio. Inserted dependent requirements 9, 2 Mio 96, 0 Mio 2, 2 0 Reference Legend: Version 1 MRP Classic on Any. DB (12 -way parallelization) Version 2 Version 3 MRP Classic on HANA (12 -way parallelization) © 2015 SAP SE or an SAP affiliate company. All rights reserved. Version 4 MRP Live on HANA Version 5 MRP Live on HANA – HANA only Customer 20

Intuitive User Experience and a responsive design Today Target Functional-based applications Role-based applications nfrom: One transaction for multiple roles with too much and complex functionality nto: Decomposed apps for each role with simple functions nfrom: Multiple entry points for the user and inconsistent user experience nto: One entry point for the User and UX following common design directions This is the current state of planning and may be changed by SAP at any time. © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 21

Key Capabilities of an exception-based user interface design Key capabilities Consolidation of activities, Intelligent navigation patterns, Intuitive usability Contact data Personalized post-it notes Trends & analytics at a glance Simulation Decision Support Full customer contact history Personalize layout variants Contextdependent actions © 2015 SAP SE or an SAP affiliate company. All rights reserved. Example: MRP Cockpit - Material Shortage Customer 22

Real Time Inventory Management Business Challenges Business Benefits » » » » Low throughput prevents real-time inventory Missing embedded and real-time analytics Missing comprehensive data model Process & data redundancies increase effort Improve on-time delivery Increase inventory turnover Reduce cost of inventory Single source of truth of inventory in one system Capabilities Posting of finest granularity like handling unit, lot size 1, sensor data » » Decreased stock levels (e. g. reduce buffers) due to increased transparency Easy to consume data model supporting flexible analytics Manage the changing demand for smaller lot sizes passing through the logistic operations © 2015 SAP SE or an SAP affiliate company. All rights reserved. Reorder point Safety stock Sub-daily replenishment Quantity » » Daily collective goods issues Weekly Replenishment Real-time processing of inventory postings and visibility of inventory values Quantity » Continuous goods issue postings Reorder point Safety stock Time Buffers Just-in-time Customer 23 23

SAP S/4 HANA Enterprise Management Key Innovations - Inventory Management Improve by elimination of aggregates Business Suite Inventory Aggregates on-the-fly aggregation MSPR History MSTQ MSLB MSTE MSTB MSKU MSLBH MSTQH MSSQ MSKUH MSTEH MSSA MSKA Eliminate MKOL MSKAH MSTBH MCHB Aggregates MKOLH MSSQH MCHBH MSSAH MSPRH MARDH Document MARCH MKPF Material Master MARC MARD MARCH MSEG MATDOC MARDH 26 aggregate tables © 2015 SAP SE or an SAP affiliate company. All rights reserved. 1 document table Customer 24

Inventory Management Examples for unlimited Data Through put in Goods Movement Example Use Case: s on Line Producti Distribution Center 1. Parallel Production combined postings Multiple production lines produce same product by single item tracking and combined postings for Goods issue raw material Goods receipt finished product Goods issue finished product Goods receipt finished product at distribution center 2. Ice Truck Scenario Distribution Center Trucks deliver goods to customer directly. Coming back to the distribution center the orders and deliveries are uploaded from offline device. Combined postings Creation of sales order and delivery Picking of goods Goods issue, invoicing Truck replenishment ©© 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 25

Simplifications are the enabler for throughput increase of 10 up to 25 Parallel postings of large material documents Throughput (items/sec) 800 § § Negative stock not allowed No database locks any more § Automotive scenario test case Reporting point backflush with transfer posting of 100 items each 60% common parts 600 400 § 200 large OEM back-flush requirement (example) SAP Business Suite on SAP HANA 0 0 20 40 60 # Parallel Processes ©© 2015 SAP SE or an SAP affiliate company. All rights reserved. 80 § 100 Customer 26

Real Time Inventory Management SAP L ABS P R EVIEW Inventory Turnover Analysis Key benefits » Real time stock analysis in graphical way » Overview of the entire inventory turnover situation for the selected scope of materials and / or plants and the selected time range » Dive into the details of the inventory analysis © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 27

Real Time Inventory Management SAP L ABS P R EVIEW Inventory Turnover Analysis Key benefits » Comprehensive stock overview per material on the time scale » Display the most important inventory key figures © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 28

SAP S/4 HANA Enterprise Management Key Innovations – Material Valuation Inventory Management SAP L ABS P REVIE W- Financials Material Documents, Material Ledger Material Prices, multi-GAAP, Accounting Document, Quantities multi-Currency Values Capabilities Business Benefits Outlook » » » » Increased throughput by locking optimization for moving average priced materials » Introduce new method: periodic price calculation Principle of One – one valuation method Analytics - analytics performed on primary data Clear separation of master data from transactional data © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 29

Order Fulfillment Cockpit Business Challenges Business Benefits » » » Maintaining customer satisfaction Complexity of order management Escalating supply chain and IT costs around order fulfillment Inaccurate order promise dates Quality of data in the collaboration process Get full insights into all issues of the order fulfillment process Focus onto most critical issues Run actions directly and track the solution progress Combines analytical insights with operational actions Real-time visualization of KPI including thresholds and alerts Enables the decision preparation via internal and external collaboration Capabilities » The internal sales representative get an comprehensive overview of the current order fulfillment. » Ability to monitor, manage and collaborate on sales orders due for shipping and invoicing, thus enabling customer and company agreements to be easily fulfilled in time and quality © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 30 30

Sales Order Fulfillment Cockpit Value Creation through: 1. Performance Value Real-time data integration • Single-query access to data 2. Process Innovation © 2015 SAP SE or an SAP affiliate company. All rights reserved. • Provide internal sales representative a single source of holistic transparency on sales order fulfillment issues on desktop and tablet, driven by exceptions. • Enables effective clarification of issues offering comprehensive decision support, collaboration, and appropriate actions. • Exception driven workiing model, ‚no touch order‘ Customer 31

SAP S/4 HANA in Automotive: Agenda SAP S/4 HANA for Automotive SAP S/4 HANA – Transition Scenarios (overview) SAP S/4 HANA for Automotive (Outlook) SAP S/4 HANA – System Conversion (Details) SAP S/4 HANA – More Information Q&A © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 32

SAP S/4 HANA The 3 transition scenarios New Implementation ERP System On-Premise Non-SAP System Example: New or existing SAP customer implementing a new SAP S/4 HANA system with initial data load S/4 Cloud System Conversion On-Premise ERP System Example: Complete conversion of an existing SAP Business Suite system to SAP S/4 HANA ERP System - Region A - Landscape Transformation On-Premise ERP System - Region B - ERP System - Region C - © 2015 SAP SE or an SAP affiliate company. All rights reserved. S/4 Cloud Example: Consolidation of current regional SAP Business Suite landscape into one global SAP S/4 HANA system or selective data migration Customer 33

SAP S/4 HANA Scenario 1 – New Implementation Scenario description New implementation of SAP S/4 HANA e. g. for customers migrating a legacy system. SAP S/4 HANA SAP ERP Non-SAP + Reengineering and process simplification based on ready-to-run business processes and reference solution delivered with the product + Pre-defined migration objects & Best Practices available in a guided process © 2015 SAP SE or an SAP affiliate company. All rights reserved. Option: Initial data load from Legacy or SAP system based on SAP LT SAP S/4 HANA Cloud Edition SAP Fiori SAP S/4 HANA Enterprise Management SAP HANA Legacy Any customers legacy system Benefits for the customer + New implementation of industry-leading Business Suite On-premise Edition What How 1 Install SAP S/4 HANA SWPM (Software Provisioning Manager) 2 Initial data load from source system SAP Landscape Transformation • SAP source: system connection • Legacy system: file upload; SAP Data Services additionally supported Customer 34

SAP S/4 HANA Scenario 2 – System Conversion Scenario description Customers who want to change their current system into a SAP S/4 HANA system. Database, SAP Net. Weaver and application transition in one step. Software Update Manager (SUM) with Database Migration Option (DMO) SAP GUI * SAP ERP Core Any. DB / SAP HANA SAP S/4 HANA On-premise Edition (SAP GUI) / SAP Fiori SAP S/4 HANA Enterprise Management SAP HANA Benefits + Migration without reimplementation + No disruption for existing business processes + Re-evaluation of customization and existing process flows © 2015 SAP SE or an SAP affiliate company. All rights reserved. * What How Installation and migration Rapid Database Migration of SAP Business Suite to SAP S/4 HANA (all one step migration, including SAP S/4 HANA Finance and SAP S/4 HANA Logistics conversion) using SUM with DMO Customer 35

SAP S/4 HANA Scenario 3 – Landscape transformation Scenario description Customers who want to consolidate their landscape or to selectively transform data into a SAP S/4 HANA system. SAP S/4 HANA On-premise Edition Consolidation or selective data transformation based on SAP LT capabilities SAP S/4 HANA Cloud Edition (SAP GUI) / SAP Fiori SAP S/4 HANA Enterprise Management Benefits SAP HANA + Value-based migration: selective data transformation allows a phased approach focusing the first SAP S/4 HANA migration phase on parts of the business with highest ROI and lowest TCI + Agility: stay on current business processes but move gradually to SAP S/4 HANA innovations (Move to SAP S/4 HANA at your own pace!) + TCO reduction: system and landscape consolidation with harmonized/ simplified processes and unified master data lead to lower cost of operations © 2015 SAP SE or an SAP affiliate company. All rights reserved. What 1 Consolidation 2 Selective Data Transformation How SAP Landscape Transformation Consolidate clients from different source systems into one new or existing SAP S/4 HANA system (build-up multiple client system) SAP Landscape Transformation • Migration of business units/single entities such as company code • Migration of selected SAP applications (example: central Finance) Customer 36

SAP S/4 HANA in Automotive: Agenda SAP S/4 HANA for Automotive SAP S/4 HANA – Transition Scenarios (overview) SAP S/4 HANA for Automotive (Outlook) SAP S/4 HANA – System Conversion (Details) SAP S/4 HANA – More Information Q&A © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 37

SAP LAB Capacity Planning S PREVIE Business Challenges Business Benefits » » » TCO reduction: Ø PPDS functionality gets co-deployed with ERP on the same system utilizing one HANA database instance Ø Integration for material master and work center resource not needed » » » Production bottlenecks identified more quickly On-time delivery performance Days in inventory Revenue loss due to stock-outs Adapting to changing plant conditions Capabilities » Constraint based planning, using various heuristics and optimizers by bringing PP/DS on ERP, reducing integration efforts and allowing seamless master data & UI harmonization » Support industry specific planning procedures for automotive, mill, chemicals and many more © 2015 SAP SE or an SAP affiliate company. All rights reserved. W Increased visibility and speed Better visibility into inventory and product data Responding quickly to new demands UI efficiency increased by using MRP cockpit for demand analysis Customer 38 38

Comprehensive Plan to Produce in ONE System Sales Order Entry MRP Run + Constrained Planning Interactive Planning Current Release to Production Execution Future planned SAP LAB S PREVIE W Monitor and Control Planned Improvements Master data HANA Platform incl. Live cache One MRP ERP PP/DS CIF APO-PP/DS co deployed on ERP System enables: » UI Harmonization » CIF Simplification CIF ERP HANA Platform incl. Live. Cache » Master Data Harmonization » Analytics » One MRP © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 39

Available To Promise and Backorder Processing SAP LAB S PREVIE Business Challenges Business Benefits » Difficult to fulfill customer orders on time with the proper quantity » Fulfill an order on time and in the desired quantity using different kind of checks for different business scenarios » » Inability to promise accurate and reliable order dates » » Perform automatic back-order processing » » Inefficient strategies to sell scarce products in a fair manner Inefficient strategies to fulfill orders from the entire network - or to substitute products automatically W Reduce inventory carrying cost Inefficient ways to manage order backlogs Capabilities » » » Fast product availability check and use case-driven product allocation check Intelligent and fully automated selection of best confirmation based on current ATP-situation and taking into account existing master data like: » Alternative plants » Substitutable materials Backorder processing with intuitive requirement classification and simple selection criteria. Automatic exception handling. Simple ERP-based transportation and shipment scheduling © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 40 40

SAP S/4 HANA Enterprise Management Key Innovations – Available to Promise (ATP) SAP L ABS P R EVIEW New ATP functionality combines the best functions in one solution Phased approach 2015: Basic ATP algorithm based on HANA usage in production (mass ATP-check for components) Future backlog © 2015 SAP SE or an SAP affiliate company. All rights reserved. • Flexible rescheduling (gainer/winner/loser concept) • Throughput increase • Decision support • Check against product allocation • Standard interface to IBP to take over allocation data Customer 41

SAP S/4 HANA in Automotive: Agenda SAP S/4 HANA for Automotive SAP S/4 HANA – Transition Scenarios (overview) SAP S/4 HANA for Automotive (Outlook) SAP S/4 HANA – System Conversion (Details) SAP S/4 HANA – More Information Q&A © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 42

SAP S/4 HANA Scenario 2 – System Conversion Scenario description Customers who want to change their current system into a SAP S/4 HANA system. Database, SAP Net. Weaver and application transition in one step. Software Update Manager (SUM) with Database Migration Option (DMO) SAP GUI * SAP ERP Core Any. DB / SAP HANA SAP S/4 HANA On-premise Edition (SAP GUI) / SAP Fiori SAP S/4 HANA Enterprise Management SAP HANA Benefits + Migration without reimplementation + No disruption for existing business processes + Re-evaluation of customization and existing process flows © 2015 SAP SE or an SAP affiliate company. All rights reserved. * What How Installation and migration Rapid Database Migration of SAP Business Suite to SAP S/4 HANA (all one step migration, including SAP S/4 HANA Finance and SAP S/4 HANA Logistics conversion) using SUM with DMO Customer 43

SAP S/4 HANA System Conversion: Sequence Prepare Phase t 1 System Requirements t 2 t 4 t 3 Maintenance Planner Realize Phase Pre-Checks Simplification List Custom Code Migration Worklist SAP S/4 HANA, on-premise edition t 5 t 6 Software Update Manager (SUM) t Application specific follow-on activities Database Migration Software Update Data Conversion © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 44

SAP S/4 HANA on-premise edition (o. P) Transition Paths to move to SAP S/4 HANA - Overview SAP Business Suite SAP S/4 HANA family 2 SAP S/4 HANA, onpremise edition 1610 3 SAP HANA SAP S/4 HANA, onpremise edition 1511 • The transition to SAP S/4 HANA does not require the source system to be already on SAP HANA DB • SAP S/4 HANA Finance o. P is the first offering under the SAP S/4 HANA product family • The decision to go for SAP S/4 HANA Finance o. P should be based on the business benefits, but is not a mandatory prerequisite for any system conversion SAP HANA 1 System Conversion Paths (basically) SAP S/4 HANA Finance, on-premise edition 1605 SAP HANA SAP Simple Finance, on -premise edition 1503 SAP HANA SAP ERP 6. 0, EHP xx Any. DB or SAP HANA Any. DB 1 2 3 From SAP Business Suite (ERP 6. 0, EHP xx, Any. DB or SAP HANA DB) to SAP S/4 HANA Finance o. P From SAP Business Suite (ERP 6. 0, EHP xx, Any. DB or SAP HANA DB) to SAP S/4 HANA o. P From SAP S/4 HANA Finance to SAP S/4 HANA o. P One-Step-procedure • For older SAP Business Suite releases or systems on Non-Unicode an additional step to SAP ERP 6. 0 EHPxx is required. • System has to be an AS ABAP-only system. Dual-stack systems (AS ABAP and AS Java combined in one system) are not supported for the conversion. If your system is as dual-stack system, you have to split it before doing the conversion. © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 45

System Conversion from SAP Business Suite to SAP S/4 HANA System Conversion from SAP S/4 Finance to SAP S/4 HANA Transition Paths to move to SAP S/4 HANA – Details (1/2) SAP Business Suite Upgrade within the SAP S/4 HANA product family Planned SAP S/4 HANA, onpremise edition 1610 4 Start Release Target Release SAP HANA 3 SAP S/4 HANA, onpremise edition 1511 Planned SAP S/4 HANA Finance, on-premise edition 1605 1 SAP ECC 6. 0 EHP 0 -7 SAP Simple Finance on-premise edition 1503 available since: Q 1/2015 Migration to SAP HANA DB [if required], Installation of Software [EHP 7 + s. FIN]) 2 SAP ECC 6. 0 EHP 0 -7 SAP S/4 HANA Finance, on-premise edition 1605 planned for: Q 2/2016 Migration to SAP HANA DB [if required], Installation of Software [EHP 8 + s. FIN]) 3 SAP ECC 6. 0 EHP 0 -7 SAP S/4 HANA, onpremise edition 1511 available since: Q 4/2015 Migration to SAP HANA DB [if required], Installation of S 4 CORE Software SAP ECC 6. 0 EHP 8 SAP S/4 HANA, on-premise edition 1511 (SR 1) planned for: Q 2/2016 Migration to SAP HANA DB [if required], Installation of S 4 CORE Software SAP ECC 6. 0 EHP 0 -8 SAP S/4 HANA, onpremise edition 1610 SAP HANA SAP Simple Finance, on -premise edition 1503 SAP HANA Remarks 1 SAP HANA 2 Availability 4 planned for: Q 4/2016 Migration to SAP HANA DB [if required], Installation of S 4 CORE Software SAP ERP 6. 0, EHP xx Any. DB or SAP HANA © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 46

System Conversion from SAP Business Suite to SAP S/4 HANA System Conversion from SAP S/4 Finance to SAP S/4 HANA Transition Paths to move to SAP S/4 HANA – Details (2/2) SAP Business Suite Upgrade within the SAP S/4 HANA product family SAP S/4 HANA, onpremise edition 1610 Start Release Target Release SAP HANA 6 7 5 SAP S/4 HANA, onpremise edition 1511 9 Remarks 5 SAP Simple Finance on-premise edition 1503 SAP S/4 HANA, onpremise edition 1511 available since: Q 4/2015 6 SAP S/4 HANA Finance, on-premise edition 1605 SAP S/4 HANA, onpremise edition 1610 planned for: Q 4/2016 Installation of S 4 CORE Software 7 SAP Simple Finance on-premise edition 1503 SAP S/4 HANA, onpremise edition 1610 planned for: Q 4/2016 Installation of S 4 CORE Software 8 SAP Simple Finance on-premise edition 1503 SAP S/4 HANA Finance, on-premise edition 1605 planned for Q 2/2016 Installation of s. FIN Software (Upgrade) 9 SAP S/4 HANA, onpremise edition 1511 SAP S/4 HANA, onpremise edition 1610 planned for Q 4/2016 Installation Software (Upgrade) SAP HANA SAP S/4 HANA Finance, on-premise edition 1605 SAP HANA SAP Simple Finance, on -premise edition 1503 Availability Planned 8 SAP HANA Planned Installation of S 4 CORE Software SAP ERP 6. 0, EHP xx Any. DB or SAP HANA © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 47

SAP S/4 HANA System Conversion – Preparation steps Simplification List Prepare Phase Maintenance Planner Pre-Checks Custom Code Migration Worklist Simplification List To allow our customers a better planning and estimation of their way to S/4 HANA, we have created the “Simplification List”. In this list we are describing in detail on a functional level what happens in S/4 HANA to individual transactions and solution capabilities. If some transactions or capabilities are falling away, this does not mean that we are decommissioning functionality, but that we have merged this functionality with other elements or reflected it within a new solution / architecture. Simplification List for SAP S/4 HANA, on-premise edition (1511 FPS 2): Link SAP S/4 HANA, on-premise edition Supporting Tooling Maintenance Planner is a solution hosted by SAP and offers easy maintenance of systems in your landscape. The Maintenance Planner checks the system with regards to business functions, industry solutions, and add-ons. If there is no valid path for the conversion (for example, the add-on is not released yet), the Maintenance Planner prevents the conversion. For more information regarding Maintenance Planner see SAP Help: http: //help. sap. com/maintenanceplanner Pre-checks are shipped as SAP Notes to customers that want to convert to SAP S/4 HANA. Customers can use these pre-checks to find out what mandatory steps they have to carry out before converting to S/4 HANA. The results list the instances that need addressing before attempting the conversion process. The checks are run twice again during the conversion process: both times in the Software Update Manager (SUM). The conversion is stopped if errors persist. Implement SAP Note 2182725, and all the related notes attached to it. To convert your SAP system to SAP products based on SAP Net. Weaver 7. 5, such as SAP S/4 HANA, any simplifications made to SAP objects need to be considered in your customer objects. The Custom Code Migration Worklist displays all customer objects that refer to simplified SAP objects and links to information about how to adopt these customer objects. For more information about the Custom Code Check tool, see SAP Help Portal: Link and the following SCN blog: Custom Code within SAP S/4 HANA On-Premise. © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 48

SAP S/4 HANA System Conversion – Simplification List To enable our customers to plan their journey to SAP S/4 HANA in detail, we have created the “Simplification List for SAP S/4 HANA, on-premise edition 1511”. This list provides detailed functional-level descriptions of the required changes to individual transactions and solution capabilities in SAP S/4 HANA. It supports customers who are transitioning from SAP ERP 6. x or SAP Simple Finance, on-premise edition, to SAP S/4 HANA, on-premise 1511 edition and includes guidance on the activities customers need to complete before, during, and after the conversion to SAP S/4 HANA. Current Version: Simplification List for SAP S/4 HANA, on-premise edition 1511 FPS 02: Link © 2015 SAP SE or an SAP affiliate company. All rights reserved. S/4 HANA SCN: Further Details for selected Simplification Items (e. g. Business Partner Approach, Material Field Length extension, …): Link Customer 49

SAP S/4 HANA System Conversion – Simplification List The Simplification List serves three purposes: • • • Planning the actual system conversion from a traditional ERP solution to SAP S/4 HANA ~16% Reducing efforts during the actual conversion by enabling individual Simplification Items to be dealt with in advance for those customers intending to migrate in a future project. Implementing SAP S/4 HANA-compliant strategic capabilities when rolling out new capabilities to avoid rework on SAP S/4 HANA (relevant to, for example, customers who still need to finish major rollouts prior to converting to SAP S/4 HANA) Change of existing functionality: 16% • ~59% Customers are supported by: • Descriptions of the changes in the Simplification List • Pre-checks to establish whether a customer is currently using the changed solutions or technologies • Custom Code Migration Worklist content to support the customer in adapting custom code for use with SAP S/4 HANA, where required. • Tools and guidelines on handling the necessary adaptations related to these changes, for example, reports for automatically migrating data to the new data model during the system conversion © 2015 SAP SE or an SAP affiliate company. All rights reserved. Currently we have 290 Simplification List Items. They fall basically into three categories: Functionality not available within SAP S/4 HANA: 59% functional equivalent in most of the cases available • ~25% Example: Simplifications of Data Structure (for example in Sales & Distribution) Example: FI-AR-CR Credit Management Not the target architecture: 25% functionality still available • Example: Warehouse Management (WM) Note: Based on our current project experience in average 30 -40 Simplification Items are finally relevant for a dedicated customer Customer 50

SAP S/4 HANA Custom Code: Overview Within the SAP S/4 HANA system conversion project you can distinguish between the following steps related to your custom code: • Step 1: Get Transparency on your custom code • Step 2: Remove waste • Step 3: Analyze the impact, and create a plan • Step 4: Do the required custom code changes Custom Code Guide Use of traditional custom-code related tooling and new tooling: • Custom Code Lifecycle Management • Usage and Procedure Logging (UPL) • SAP Code Inspector • ABAP Test Cockpit (ATC) • Custom Code Migration Worklist (new) © 2015 SAP SE or an SAP affiliate company. All rights reserved. http: //scn. sap. com/docs/DOC-70449 Customer 51

SAP S/4 HANA Custom Code: Custom Code Migration Worklist SAP Service Marketplace S/4 Custom Code File Check Content Download from SMP and import Custom Code Migration Worklist Custom Code Analysis Result (incl. in SAP NW 7. 50) Simpl. DB Create CC extract file and import SAP Notes for the different application specific adaptions SAP Note Custom Code Analyzer SAP Note Custom Code Extract File Customers System Landscape SAP Docu: Link S 4 SCN: Link © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 52

PREPARE: Custom Code Migration Worklist © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 53

PREPARE: Custom Code Migration Worklist • To reduce and prioritize the work list use the UPL data collected in Solution Manager © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 54

SAP S/4 HANA in Automotive: Agenda SAP S/4 HANA for Automotive SAP S/4 HANA – Transition Scenarios (overview) SAP S/4 HANA for Automotive (Outlook) SAP S/4 HANA – System Conversion (Details) SAP S/4 HANA – More Information Q&A © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 55

SAP S/4 HANA in Automotive: Agenda SAP S/4 HANA for Automotive SAP S/4 HANA – Transition Scenarios (overview) SAP S/4 HANA for Automotive (Outlook) SAP S/4 HANA – System Conversion (Details) SAP S/4 HANA – More Information Q&A © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 56

SAP S/4 HANA in Automotive: Agenda SAP S/4 HANA for Automotive SAP S/4 HANA – Transition Scenarios (overview) SAP S/4 HANA for Automotive (Outlook) SAP S/4 HANA – System Conversion (Details) SAP S/4 HANA – More Information Q&A © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 57

SAP S/4 HANA More Information Discover SAP S/4 HANA, cloud edition trial SAP S/4 HANA, on-premise edition trial Joint the SAP S/4 HANA Community How to get there … S/4 HANA Cookbook S/4 HANA SCN: System Conversion © 2015 SAP SE or an SAP affiliate company. All rights reserved. Detailed SAP S/4 HANA road map: SAP Service Marketplace SAP Help: SAP S/4 HANA, onpremise edition 1511 Customer 58

SAP S/4 HANA in Automotive: Agenda SAP S/4 HANA for Automotive SAP S/4 HANA – Transition Scenarios (overview) SAP S/4 HANA for Automotive (Outlook) SAP S/4 HANA – System Conversion (Details) Q&A © 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 59

Thank you Contact information: Frank Wagner Juergen Helmle f. wagner@sap. com Juergen. Helmle@sap. com © 2016 SAP SE or an SAP affiliate company. All rights reserved.