SAP An Introduction ( etc.) (z-library.sk, 1lib.sk, z-lib.sk)

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SAP PRESS is a joint initiative of SAP and Rheinwerk Publishing. The know-how offered by SAP specialists combined with the expertise of Rheinwerk Publishing offers the reader expert books in the field. SAP PRESS features first-hand information and expert advice, and provides useful skills for professional decision-making. SAP PRESS offers a variety of books on technical and business-related topics for the SAP user. For further information, please visit our website: http://www.sap-press.com. Bardhan, Baumgartl, Choi, Dudgeon, Lahiri, Meijerink, Worsley-Tonks SAP S/4HANA: An Introduction (3rd Edition) 2019, approx. 615 pp., hardcover and e-book www.sap-press.com/4782 Sandy Markin, Amit Sinha SAP Integrated Business Planning: Functionality and Implementation (2nd Edition) 2019, approx. 504 pages, hardcover and e-book www.sap-press.com/4615 Singh, Feurer, Ruebsam SAP Hybris: Commerce, Marketing, Sales, Service, and Revenue with SAP 2017, 329 pages, hardcover and e-book www.sap-press.com/4394 Silvia, Frye, Berg SAP HANA: An Introduction (4th Edition) 2016, 549 pages, hardcover and e-book www.sap-press.com/4160

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Matthew Riches, Ben Robinson, Gareth Ryan, Ian Vincent SAP® : An Introduction Next-Generation Business Processes and Solutions

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Dear Reader, I’ve always associated transformation with butterflies. From caterpillar to chrysalis to butterfly, this iconic metamorphosis is straightforward, elegant, and predictable. Each butterfly we see floating on a breeze has undergone it and thrived. However, it’s harder to apply these three descriptors to transformation in the business world. Here, there’s no such thing as growth inside the safe seclusion of a chrysalis; instead, today’s SAP customers face a harsh environment characterized by global com- petition and constant disruption. IT budgets are tight. Consumer demands change over time. Software portfolios evolve, and so do the options for implementing them. If you need help reading the modern SAP landscape, then you’ve come to the right place. This book offers a comprehensive snapshot of the next-generation SAP portfolio within the context of your key lines of business. We hope you’ll let us know whether it offered any clarity as you undergo your own transformation, so please feel free to con- tact me and share any feedback you may have. Thank you for purchasing a book from SAP PRESS! Megan Fuerst Editor, SAP PRESS meganf@rheinwerk-publishing.com www.sap-press.com Rheinwerk Publishing • Boston, MA

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Notes on Usage This e-book is protected by copyright. By purchasing this e-book, you have agreed to accept and adhere to the copyrights. You are entitled to use this e-book for personal purposes. You may print and copy it, too, but also only for personal use. Sharing an electronic or printed copy with others, however, is not permitted, neither as a whole nor in parts. Of course, making them available on the Internet or in a company network is illegal as well. For detailed and legally binding usage conditions, please refer to the section Legal Notes. This e-book copy contains a digital watermark, a signature that indicates which person may use this copy:

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Imprint This e-book is a publication many contributed to, specifically: Editor Megan Fuerst Acquisitions Editor Emily Nicholls Copyeditor Julie McNamee Cover Design Graham Geary Photo Credit iStockphoto.com/594455370/© SireAnko Production E-Book Kelly O’Callaghan Typesetting E-Book SatzPro, Krefeld (Germany) We hope that you liked this e-book. Please share your feedback with us and read the Service Pages to find out how to contact us. ISBN 978-1-4932-1650-5 (print) ISBN 978-1-4932-1651-2 (e-book) ISBN 978-1-4932-1652-9 (print and e-book) © 2019 by Rheinwerk Publishing, Inc., Boston (MA) 1st edition 2019 The Library of Congress has cataloged the printed edition as follows: Names: Riches, Matthew, author. Title: SAP, next generation / Matthew Riches [and three others]. Description: 1st edition. | Bonn ; Boston : Rheinwerk Publishing, [2018] | Includes index. | Identifiers: LCCN 2018035402 (print) | LCCN 2018037485 (ebook) | ISBN 9781493216512 (ebook) | ISBN 9781493216505 (alk. paper) Subjects: LCSH: SAP ERP. | Management information systems. | Client/server computing. | Business--Data processing. Classification: LCC HD30.213 (ebook) | LCC HD30.213 .R527 2018 (print) | DDC

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Contents Preface ..................................................................................................................................................... 19 Introduction .......................................................................................................................................... 29 PART I Customer Experience 1 Customer Experience with SAP C/4HANA 47 1.1 Business Case ......................................................................................................................... 49 1.2 Marketing ............................................................................................................................... 51 1.2.1 Challenges in Marketing .................................................................................... 51 1.2.2 SAP Marketing Cloud ........................................................................................... 55 1.2.3 SAP Acquisitions in Marketing ......................................................................... 61 1.3 Sales ........................................................................................................................................... 62 1.3.1 Challenges in Sales ............................................................................................... 63 1.3.2 SAP Sales Cloud ..................................................................................................... 66 1.4 Commerce ............................................................................................................................... 70 1.4.1 Challenges in Commerce ................................................................................... 71 1.4.2 SAP Commerce Cloud .......................................................................................... 73 1.5 Customer Service ................................................................................................................. 75 1.5.1 Challenges in Customer Service ...................................................................... 77 1.5.2 Customer Service Channels .............................................................................. 78 1.5.3 SAP Service Cloud ................................................................................................. 80 1.6 Data ........................................................................................................................................... 83 1.6.1 Challenges in Data ............................................................................................... 84 1.6.2 SAP Customer Data Cloud ................................................................................. 84 1.7 The Road Ahead .................................................................................................................... 857

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Contents2 Sales and Service with SAP S/4HANA 87 2.1 Business Case ........................................................................................................................ 88 2.2 Order and Contract Management ............................................................................... 90 2.2.1 Process Steps ......................................................................................................... 91 2.2.2 Business Models ................................................................................................... 92 2.2.3 Product-as-a-Service ........................................................................................... 93 2.2.4 Business Networks and Order Channels ...................................................... 94 2.2.5 Order and Contract Management with SAP S/4HANA ........................... 96 2.3 Sales Planning and Performance Management .................................................... 100 2.3.1 Incentive and Commission Management ................................................... 101 2.3.2 Sales Forecasting .................................................................................................. 102 2.3.3 Sales Analytics ....................................................................................................... 104 2.4 Billing and Revenue Management .............................................................................. 105 2.4.1 Billing and Revenue Management Models ................................................. 106 2.4.2 Solution Options .................................................................................................. 108 2.5 Customer Service ................................................................................................................. 111 2.5.1 Customer Service Models .................................................................................. 112 2.5.2 Solution Options .................................................................................................. 114 2.6 The Road Ahead ................................................................................................................... 117 PART II Operations 3 Supply Chain Planning with SAP Integrated Business Planning 121 3.1 Business Case ........................................................................................................................ 123 3.2 Sales and Operations Planning ..................................................................................... 124 3.2.1 Challenges in Sales and Operations Planning ............................................ 124 3.2.2 Demand Planning ................................................................................................ 127 3.2.3 Supply Review ....................................................................................................... 129 3.2.4 Pre-Sales and Operations Planning Review ................................................ 131 3.2.5 Executive Review .................................................................................................. 1318

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Contents3.3 Demand Management ...................................................................................................... 132 3.4 Inventory Management .................................................................................................... 133 3.4.1 Inventory Quantity ............................................................................................... 134 3.4.2 Inventory State ...................................................................................................... 136 3.4.3 Inventory Location ................................................................................................ 137 3.5 Response and Supply Management ............................................................................ 137 3.6 Supply Chain Analytics ...................................................................................................... 139 3.7 The Road Ahead .................................................................................................................... 140 4 Sourcing and Procurement with SAP S/4HANA and SAP Ariba 143 4.1 Business Case ......................................................................................................................... 144 4.2 SAP Portfolio Overview ..................................................................................................... 146 4.2.1 SAP S/4HANA Enterprise Management ........................................................ 146 4.2.2 SAP Ariba ................................................................................................................. 147 4.2.3 SAP Fieldglass ........................................................................................................ 149 4.3 Sourcing ................................................................................................................................... 150 4.3.1 Reactive Sourcing ................................................................................................. 150 4.3.2 Tactical Sourcing ................................................................................................... 151 4.3.3 Strategic Sourcing ................................................................................................ 153 4.4 Purchasing .............................................................................................................................. 161 4.4.1 Purchase Request ................................................................................................. 162 4.4.2 Purchase .................................................................................................................. 164 4.4.3 Acknowledgment and Shipping Notifications ........................................... 164 4.4.4 Receiving ................................................................................................................. 165 4.4.5 Invoicing .................................................................................................................. 165 4.5 Services Procurement ........................................................................................................ 167 4.5.1 Services Purchasing ............................................................................................. 168 4.5.2 Services Processing .............................................................................................. 169 4.6 The Road Ahead .................................................................................................................... 1709

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Contents5 Manufacturing with SAP S/4HANA 173 5.1 Business Case ........................................................................................................................ 174 5.2 SAP Portfolio Overview .................................................................................................... 176 5.3 Production Planning .......................................................................................................... 178 5.3.1 Planning Strategies ............................................................................................. 179 5.3.2 Material Requirements Planning in SAP S/4HANA .................................. 182 5.4 Production Execution ........................................................................................................ 184 5.5 Manufacturing Execution ................................................................................................ 186 5.5.1 SAP Manufacturing Execution ......................................................................... 187 5.5.2 SAP Manufacturing Integration and Intelligence ..................................... 187 5.5.3 SAP Plant Connectivity ....................................................................................... 189 5.6 Production Quality Management and Delivery .................................................... 189 5.7 The Road Ahead ................................................................................................................... 191 6 Supply Chain Management with SAP S/4HANA 193 6.1 Business Case ........................................................................................................................ 195 6.2 Inventory Management and Basic Warehouse Management ........................ 196 6.2.1 Goods Receipt and Goods Issue ...................................................................... 197 6.2.2 Moving Stock between Locations ................................................................... 198 6.2.3 Cycle Counting and Physical Inventory ........................................................ 198 6.2.4 Stock Types ............................................................................................................. 199 6.3 Extended Warehouse Management .......................................................................... 203 6.4 Transportation Management ........................................................................................ 206 6.5 The Road Ahead ................................................................................................................... 209 7 Asset Management with SAP S/4HANA 211 7.1 Business Case ........................................................................................................................ 21210

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Contents7.2 Maintenance Management ............................................................................................ 213 7.2.1 Maintenance Strategies ..................................................................................... 213 7.2.2 SAP Portfolio for Asset Management ............................................................ 217 7.3 Asset Operations .................................................................................................................. 228 7.3.1 SAP Asset Intelligence Network ....................................................................... 228 7.3.2 SAP Asset Strategy and Performance Management ................................ 229 7.4 The Road Ahead .................................................................................................................... 230 8 Research and Development with SAP S/4HANA 233 8.1 Business Case ......................................................................................................................... 235 8.2 Innovation Management ................................................................................................. 235 8.3 Product Lifecycle Costing ................................................................................................. 238 8.4 Portfolio and Project Management ............................................................................. 241 8.5 Commercial Project Management ............................................................................... 242 8.6 The Road Ahead .................................................................................................................... 245 PART III Financials 9 Financial Accounting with SAP S/4HANA 249 9.1 Business Case ......................................................................................................................... 251 9.2 Financial Statements ......................................................................................................... 252 9.2.1 Income Statement/Profit and Loss ................................................................. 253 9.2.2 Balance Sheet ........................................................................................................ 254 9.2.3 Cash Flow Statement .......................................................................................... 257 9.3 General Ledger Accounting ............................................................................................. 258 9.3.1 Chart of Accounts ................................................................................................. 261 9.3.2 Journal Entries ....................................................................................................... 262 9.3.3 SAP S/4HANA Finance ......................................................................................... 26311

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Contents9.4 Financial Close ...................................................................................................................... 265 9.5 Receivables Management ............................................................................................... 268 9.6 Invoice Management and Accounts Payable ......................................................... 272 9.7 Asset Accounting ................................................................................................................. 275 9.8 Real Estate Management ................................................................................................ 277 9.9 Financial Consolidation .................................................................................................... 278 9.10 Governance, Risk, and Compliance ............................................................................. 282 9.11 Treasury Management ..................................................................................................... 284 9.12 The Road Ahead ................................................................................................................... 286 10 Management Accounting with SAP S/4HANA 287 10.1 Business Case ........................................................................................................................ 288 10.2 Cost Management .............................................................................................................. 290 10.3 Planning and Control ......................................................................................................... 293 10.4 Profitability Analysis ......................................................................................................... 297 10.5 Project Accounting ............................................................................................................. 300 10.6 The Road Ahead ................................................................................................................... 303 PART IV Human Resources 11 Core Human Resource and Talent Management with SAP SuccessFactors 307 11.1 Business Case ........................................................................................................................ 308 11.2 Hire-to-Retire Process Overview .................................................................................. 309 11.3 Core Human Resources and Payroll ............................................................................ 31212

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Contents11.4 Time and Attendance ......................................................................................................... 317 11.5 Recruiting and Onboarding ............................................................................................. 319 11.5.1 Recruiting ................................................................................................................ 320 11.5.2 Onboarding ............................................................................................................. 322 11.6 Learning and Development ............................................................................................. 324 11.6.1 Learning ................................................................................................................... 325 11.6.2 Succession and Development .......................................................................... 326 11.7 Performance and Compensation .................................................................................. 327 11.7.1 Performance and Goal Management ............................................................ 327 11.7.2 Compensation ....................................................................................................... 329 11.8 Workforce Planning and Analytics .............................................................................. 330 11.9 The Road Ahead .................................................................................................................... 331 12 Contingent Workforce Management with SAP Fieldglass 333 12.1 Business Case ......................................................................................................................... 335 12.2 Simple Contingent Work .................................................................................................. 336 12.3 Complex Contingent Engagements ............................................................................ 340 12.4 The Road Ahead .................................................................................................................... 343 13 Travel and Expense Management with SAP Concur 345 13.1 Business Case ......................................................................................................................... 346 13.2 Expense .................................................................................................................................... 349 13.2.1 Making a Claim ..................................................................................................... 350 13.2.2 Approving a Claim and Reimbursement ...................................................... 350 13.2.3 Additional Functionality for Concur Expense ............................................. 35113

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Contents13.3 Travel ........................................................................................................................................ 352 13.3.1 Travel Management Companies .................................................................... 353 13.3.2 Additional Functionality for Concur Travel ................................................. 355 13.4 Reporting ................................................................................................................................ 356 13.5 Monitoring ............................................................................................................................. 357 13.6 The Road Ahead ................................................................................................................... 357 PART V Data 14 Database and Platform 361 14.1 Business Case ........................................................................................................................ 362 14.2 Architecture Overview ...................................................................................................... 363 14.3 Database Technology ........................................................................................................ 366 14.3.1 Database Services ................................................................................................ 368 14.3.2 Data Access ............................................................................................................ 371 14.3.3 Analytics Processing ............................................................................................ 373 14.4 Application Platforms ....................................................................................................... 375 14.4.1 SAP Cloud Platform Core Capabilities ........................................................... 378 14.4.2 SAP Leonardo ......................................................................................................... 382 14.5 User Interface ........................................................................................................................ 383 14.5.1 SAP Fiori ................................................................................................................... 384 14.5.2 Artificial Intelligence and User Interfaces ................................................... 386 14.6 The Road Ahead ................................................................................................................... 388 15 Data Warehouse 391 15.1 Business Case ........................................................................................................................ 392 15.2 Data Warehousing .............................................................................................................. 394 15.2.1 SAP BusinessObjects and SAP Lumira ........................................................... 395 15.2.2 SAP Business Warehouse .................................................................................. 39714

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Contents15.2.3 SAP Business Warehouse on SAP HANA ....................................................... 400 15.2.4 SAP BW/4HANA .................................................................................................... 401 15.2.5 Embedded Analytics ............................................................................................ 405 15.3 Big Data .................................................................................................................................... 406 15.4 The Road Ahead .................................................................................................................... 408 16 Analytics 411 16.1 Business Case ......................................................................................................................... 412 16.2 Business Intelligence .......................................................................................................... 413 16.2.1 Traditional Business Intelligence .................................................................... 414 16.2.2 Modern Business Intelligence .......................................................................... 415 16.2.3 Bimodal Business Intelligence ......................................................................... 419 16.3 Enterprise Performance Management ....................................................................... 427 16.3.1 SAP Business Planning and Consolidation ................................................... 427 16.3.2 SAP Profitability and Performance Management ..................................... 428 16.4 Predictive Analytics ............................................................................................................ 429 16.4.1 Predictive Analytics Library ............................................................................... 430 16.4.2 SAP Predictive Analytics ..................................................................................... 430 16.5 The Road Ahead .................................................................................................................... 431 17 Enterprise Information Management 435 17.1 Business Case ......................................................................................................................... 436 17.2 Data Strategy ........................................................................................................................ 438 17.3 Data Governance ................................................................................................................. 440 17.4 Data Quality and Remediation ...................................................................................... 445 17.4.1 Discover and Measure ........................................................................................ 447 17.4.2 Monitor and Improve .......................................................................................... 449 17.5 Data Migration ..................................................................................................................... 451 17.5.1 Data Migration Phases ....................................................................................... 45215

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Contents17.5.2 SAP S/4HANA Migration Cockpit .................................................................... 455 17.5.3 SAP Data Services ................................................................................................. 456 17.5.4 SAP HANA Smart Data Integration ................................................................ 456 17.5.5 SAP HANA Smart Data Quality ........................................................................ 457 17.6 The Road Ahead ................................................................................................................... 458 PART VI Integration and Administration 18 Application Integration 463 18.1 Business Case ........................................................................................................................ 464 18.2 Cloud Integration ................................................................................................................ 466 18.3 Process Orchestration ....................................................................................................... 470 18.3.1 SAP Process Orchestration Architecture ...................................................... 471 18.3.2 SAP Process Integration ..................................................................................... 472 18.3.3 SAP Business Process Management .............................................................. 475 18.3.4 SAP Business Rules Management .................................................................. 477 18.4 API Management ................................................................................................................. 479 18.5 Process Mining ..................................................................................................................... 481 18.6 Operational Process Intelligence ................................................................................. 485 18.7 The Road Ahead ................................................................................................................... 488 19 Administration 491 19.1 Business Case ........................................................................................................................ 492 19.2 Business Processes and Best Practices ....................................................................... 493 19.3 Portfolio-to-Project ............................................................................................................ 496 19.4 Requirement-to-Deploy ................................................................................................... 50016

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Contents19.5 Request-to-Fulfill ................................................................................................................. 505 19.6 Detect-to-Correct ................................................................................................................. 506 19.7 The Road Ahead .................................................................................................................... 511 Conclusion ............................................................................................................................................. 513 The Authors ........................................................................................................................................... 521 Index ........................................................................................................................................................ 523 Service Pages ........................................................................................................................................ I Legal Notes ............................................................................................................................................ III17

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2Preface Welcome to the next generation of SAP! This book comes from a recognition that the world of SAP applications and technol- ogy is evolving and has been doing so at a furious pace, leaving many customers (and consultants) unsure of the way forward for SAP and what a “next-generation” SAP landscape will look like in the future. We’ve written this book to take a step back and provide an overview of the SAP portfolio and where it’s heading. By painting a picture of the next-generation SAP landscape and tying the new and enhanced products directly to discrete business processes, we have adopted a narrative rather than a technical tone to describe how SAP solutions can be used to support and enable your business in new ways. To provide context to each topic, we’ve constructed a fictional business case that we reference throughout the book. In each chapter, we look at the way in which our fic- tional company has looked to adopt and use SAP applications and technology to enhance and support the business. This isn’t intended to be a blueprint for your use of SAP, but more of an example of how SAP could be applied given the (admittedly fictional) constraints of an example company. Who This Book Is For This book is for anyone looking to gain an overview of the next-generation SAP port- folio, how it enables business functions, and how the various elements interlink with each other. Whether you are a customer looking to understand the road ahead, a con- sultant looking to broaden your knowledge, or a business leader embarking on a transformation program, this book will provide a starting point for you to jump into the world of SAP. For both design and necessity, this book provides a high-level view, and unlike other SAP PRESS publications, this isn’t intended to be a comprehensive guide to each and every product. How This Book Is Organized We’ve laid out this book in six main parts with each part aligning to a set of inter- linked business functions or related technical topics. Within each part, we’ve focused19

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Prefaceindividual chapters on specific business functions or technical topics and the related SAP applications and services that support them. To help frame each topic, each chapter follows a consistent structure, opening with a Business Case section that looks to bring each chapter to life and set some real world context for the topic. For a few chapters with a high number of interacting SAP solutions, an overview section is provided after the Business Case section. At the end of each chapter, we provide a Road Ahead section, where we provide our perspective on what may come next to give a look at what the future may look like for each area. Within each section, you’ll find the following series of text boxes:  Out with the Old These text boxes highlight legacy technologies and old products/product names, to help you connect the modern landscape with traditional SAP offerings.  What’s Right for You? These text boxes help you make decisions within a varied solution portfolio that may impact your IT processes or priorities.  Digital Disrupter These text boxes introduce new technologies (in particular those under the SAP Leonardo umbrella), and explain how they impact key business processes. Structure Given the broad scope of this book, it isn’t necessary to read it sequentially; certain parts and chapters may be more pertinent or of more interest than others. So, if you have a particular interest in manufacturing or in how to manage a contingent work- force, you can start reading the relevant chapters without having gone through the others first. The book is broken into broad parts and then subdivided further into specific chapters, so now let’s review what is covered within each part and chapter. Part I: Customer Experience We kick off the book by looking at how SAP can support businesses in their sales cycles and in delivering on customer experience goals. We start with a look at SAP C/4HANA and then how SAP S/4HANA supports the sales and service processes in the following chapters:20