WHY

MIGRATE
TO SAP
S/4HANA?
TAKING THE LEAP FORWARD

Pieter Lootens
SAP S/4HANA MAGIC QUADRANT FOR SINGLE-INSTANCE ERP FOR PRODUCT-CENTRIC MIDMARKET COMPANIES

A NEW FLAGSHIP
SAP S/4HANA is an entirely new business suite that runs on the CHALLENGERS LEADERS
SAP HANA in-memory database technology. It moves away from
the transactional ERP system towards giving end users real-time
decision support. SAP S/4HANA simplifies processes, drives
them in real time and makes them easy to change. It has
been developed to become the digital core of the enterprise,
supporting businesses on their digital transformation journey.

SAP Business All-in-One

ABILITY TO EXECUTE
For those of you who are wondering how SAP came up with
the name for its new ERP, Hana is a beach in Hawaii, the kind Oracle JD Edwards EnterpriseOne IFS Applications

you would like to go to every weekend and thats exactly the

Oracle E-Business Suite
message that SAP wants to get across.Things that, in the past, you
could do only once in a lifetime if you were lucky are now Microsoft
Dynamics AX
just a few clicks away. Infor LN
QAD Enterprise Applications
Epicor ERP
Infor M3
In short, SAP S/4HANA is a building block for the digital
economy, guiding businesses towards innovative, real-time
business models and laying the foundation for new value
propositions.
Sage X3

NICHE PLAYERS VISIONARIES

COMPLETENESS OF VISION 3
SOURCE: GARTNER (DECEMBER 2015)
SAP S/4HANA
CONNECTING
TO BUSINESS
CHALLENGES
SAP S/4HANA is the digital core of your entire business.
It connects processes, provides live information and insights,
and integrates the enterprise with the digital world at large.
By opening up a whole new range of possibilities, SAP
S/4HANA tackles some of the major business challenges
that companies are facing today.
2.1 UNSUPPORTED DECISION-MAKING
Nowadays, the data that companies gather is key in creating new
and meaningful insights, but extracting value out of this massive
amount of data is easier said than done. Over time, enterprise
applications and infrastructure have become increasingly complex.
An important advantage of SAP S/4HANA is the possibility to
bring together data from a broad variety of systems more easily,
be that structured data or non-structured data from social media
sources. For more advanced reporting, companies will continue
to rely on their existing business intelligence (BI) tools, but whats
new in SAP S/4 HANA is the embedded analytics functionality.
This enables business users to perform real-time operational
reporting on their transactions. By doing so, they gain more
timely access to analytics since they are less dependent on IT
to provide them with reports and obtain more valuable insights
for smart decision-making.
2.2 COMPLEX PROCESSES
While many organizations have a long tradition in batch-oriented
business processes, SAP S/4HANA is firmly committed to helping
companies to get the most out of real-time data processing and
business processes.
The increased visibility and agility that come from this are key
to remaining competitive in a digital and highly volatile business
environment. SAP S/4HANA allows businesses to simplify
processes and gives business users access to data from anywhere
in real time. For processes such as month-end closing, for
example, real-time processing of data means faster completion
and fewer redundant tasks that add little to no value.
2.3 COMPLEX TECHNOLOGY
Companies all over the world are facing the challenges that come
from operating in the digital economy. Data volumes continue
to increase, as do the number of mobile users, connected
devices and workloads in the cloud. Although many companies
are well aware of the impact of these trends on their future
growth, numerous obstacles stand in the way of them achieving
their goals. The current complexity of their IT infrastructure
and application landscape is mostly seen as the main inhibitor.
This complexity not only hinders decision-making and smooth
business processes, but it also harms customer satisfaction and
increases costs.
5
 LIVING IN A DIGITAL ECONOMY BUT OFTEN TIMES ITS COMPLEXITY THAT IS STANDING IN THE WAY

LAST TWO YEARS LAST TWO YEARS COMPLEXITY IS MANIFESTATIONS OF COMPLEXITY:

HINDERING THE COSTS ARE SIGNIFICANT

90% 40%
BUSINESS GROWTH

Of the worlds data Growth in adoption of Percentage of business Percentage of business executives
has been generated 1 business networks 2 executives who agree estimating the costs of complexity

END OF 2020 BY 2020 IN 2014 86% 67% 61% 11%

212 billion 9 billion 51%
Business processes and decision Say employee satisfaction Believe their organization Feel their organization
making have become so complex has been harmed cost have increased by at is a top innovator in
that they hinder our ability to least 11% their sector
grow in a digital economy
Things will be connected 3 Mobile users in the world 4 Of workloads processed
in the cloud 5

1) SCIENCE DAILY. MAY 22, 2013

2) TECHNOLOGY ADOPTION REPORTON BUSINESS NETWORK, ARDENT PARTNERS, 2014
3) INTERNET OF THINGS (IOT) 2013 TO 2020 MARKET FORECAST: BILLIONS OF THINGS, TRILLIONS OF DOLLARS. IDC, 2013
4) STATISTA. 2014
5) CISCO GLOBAL CLOUD INDEX: FORECAST AND METHODOLOGY FOR 2013-2018, CISCO SYSTEMS INC., NOVEMBER 11, 2014 2015 SAP SE OR AN SAP AFFILIATE COMPANY. ALL RIGHTS RESERVED. 7
WHY MIGRATE?
FOUR COMPELLING VALUE DRIVERS
1 INSTANT INSIGHT THE POWER OF EMBEDDED ANALYTICS
To simplify companies IT infrastructures as a whole, SAP chose
to embed several applications within S/4HANA. The impact
of unifying applications such as APO (Advanced Planning and
Optimization), EWM (Extended Warehouse Management),
GTS (Global Trade Services) and TM (Transportation
Management) to name but a few and extended functionality
such as Advanced ATP in one single system, supported by one
single database, is huge. Not only do customers receive more
functionality in the core, but implementation is also expected
to be much faster and simpler since adding new functionality
is almost a matter of just switching it on. No more data
duplication, no more interfacing.
Last but not least, SAP S/4HANA is open to customers of
all industries rather than being dependent of the functional
offering of separate industry solutions. This simplification
enables users to cherry-pick functionality that was not
available to them before.
Another powerful feature of S/4HANA is the
embedded reporting that enables users to perform
real-time analytics on transactional data, effectively
eliminating the need to handle transactions and 39% OF BELGIAN COMPANIES DONT
analytics separately. For example, a warehouse manager NEED THEIR IT DEPARTMENT TO
can check the percentage of completion of the daily MAKE REPORTS AND ANALYSIS. IN
workload in the warehouse at any time, then simulate 1 OUT OF 4 COMPANIES, HOWEVER,
the predicted outcome of moving operators from one THE MANAGEMENT RELIES ENTIRELY
zone to another. This embedded analytics is a powerful ON IT TO PROVIDE FIGURES AND
feature that fulfils all analytics needs within one solution, ANALYTICS.
supporting business users more efficiently in making
better decisions. It provides easy tools which allow the SAP MARKET PROBE
user to access and create self-service reports.
9
2 ACCELERATION & SIMPLIFICATION SIMPLE TECHNOLOGY
SAP S/4HANA is all about simplicity: in the underlying data
models, in the implementation roadmaps and in the IT landscape
as a whole. One of the key advantages of the simplified data
model is the ability to achieve shorter innovation cycles.
The simpler the data model is, the faster adjustments can be
made and the quicker businesses can respond to the evolving
environment they operate in.
In addition, SAP S/4HANA enables smarter use of infrastructure,
since the unified functionality on one single platform eliminates
the need to invest in and maintain multiple databases to run
different applications.
SAP has also simplified a number of transactional flows. In the
procure-to-pay process, for example, this simplification speeds
up the entire process and allows business users to manage
purchases, evaluate vendors or follow up orders much more
quickly and easily.
And lastly, experienced SAP users will be astonished by
the new UI (user interface) tools that S/4 HANA provides.
A key user will no longer need help from a developer to
add an extra field to a UI. They will even be able to extend
business contexts themselves. SAP S/4 HANA also allows easy
reporting, enabling new reports to be created using a simple
wizard. These reports are not limited to displaying just data;
some graphical functions are also supported out of the box.
The most important property of these extensions is that they
are completely decoupled from the core application, so they
are not affected when updating to the next version.
40% OF EXECUTIVES WORRY THAT
THEIR ORGANIZATIONS WILL NOT
KEEP PACE WITH TECHNOLOGICAL
CHANGE AND WILL LOSE THEIR
COMPETITIVE EDGE
MCKINSEY STUDY, 2013
3 FLEXIBILITY BEING TRULY CONNECTED
As well as being all about simplicity, SAP S/4HANA is equally Besides the S/4 HANA core, there is also the SAP HANA Cloud
about connectivity. The new business suite is a game changer Platform an in-memory cloud platform that allows users to
in the way it opens up towards other applications (via plug- quickly build impactful, highly scalable applications leveraging
and-play connectors) and external devices alike. It represents the massive speed and scale of SAP HANA. This Platform-as-
a big step forward in terms of the time needed to set up and a-Service (PaaS) offering enables you to focus on developing
configure new connections, since the simplified technology your software and use an enterprise-ready environment in the
that SAP S/4HANA offers can now significantly speed up this SAP cloud to deploy and run applications securely and reliably.
process.
At its core, SAP S/4HANA combines traditional ERP data with BY 2018, AT LEAST HALF OF IT
data from Internet of Things applications, cloud applications SPENDING WILL BE CLOUD-BASED
such as Hybris or Ariba and other sources for subsequent
analysis and utilization in simulations and forecasts. In practice, DC FUTURESCAPE: WORLDWIDE IT INDUSTRY
that could enable you to monitor production orders in real 2016 PREDICTIONS
time, integrate that data with sensor data and translate those
S/4HANA IS DESIGNED TO BE
data sources into valuable insights and actions, such as triggering
CONNECTED TO THE WORLD, SO
an automatic alert if a machine is close to breaking down. Such
BOTH SAP AND NON-SAP DATA CAN
insights can then be pushed further towards other applications
BE BROUGHT TO LIFE ON THE HANA
in the digital core, enabling you to notify your customer of a
possible delay in delivery. PLATFORM, EMPOWERING BUSINESS
USERS WITH INSIGHTS TO ACT IN THE
MOMENT!
SOURCE: SAP
11
4 PRODUCTIVITY USER EXPERIENCE 2.0
One of the most striking innovations in S/4HANA is to
see the full potential of Fiori unleashed. With Fiori, SAP has
made a giant leap forward when it comes to ease of use and
performance. Fiori is a personalized, responsive and simple
user interface, delivering a unified experience across devices. In
fact, Fiori completely changes the way you work in SAP thanks
to the individualized Fiori launchpad: a role-based homepage
with tiles that display status indicators, such as the number of
open tasks. Each tile on the launchpad represents a different
task. Fiori automatically pushes information to the users, and
every alert allows them to drill down to more detailed levels
of information in order to take appropriate action. Fiori brings
the power of HANA and the simplified data model to the
surface.
For the warehouse manager we referred to earlier, this would
mean that one of the tiles on his desktop indicates the general
completion percentage of the workload, allowing him to access
more detailed information per zone and to simulate the effect
of moving operators elsewhere in real time.
He takes action where needed, hits the approve button and
the approval is updated in real time. Thats right Fiori no
longer has a refresh button.
In SAP S/4HANAs 1610 release, Fioris added value will be
extended even further with the launch of SAP Fiori 2.0. The
new release takes user centricity to yet another level by
offering a clear structure and role-based orientation without
compromising on flexibility. One of the new features that
reflects the vision behind Fiori 2.0 is Viewport: a personal
gateway that allows users to focus on their core tasks without
losing sight of what happens in other areas. Users can, for
example, activate a floating panel to park or share information
or to collaborate on complex business scenarios, all without
leaving the task they are currently working on. Additionally, a
more user-friendly work environment is becoming increasingly
important in view of the growing number of digital natives
entering the labor market. SAP Fiori not only contributes to IN 2015, SAP RECEIVED THE
faster on-the-job training, but it can also help companies to PRESTIGIOUS RED DOT DESIGN
attract and retain talented people. AWARD FOR HIGH-QUALITY
DESIGN FOR ITS FIORI USER
EXPERIENCE.
13
GETTING STARTED

SO WHY SHOULD
YOU MAKE THIS IS DELAWARE The potential benefit of SAP S/4HANA is substantial to say the
least, but so too is the need for an experienced and pragmatic

LEAP NOW? CONSULTING

partner to unlock the full value of the business suite for your
company. First, you need to assess precisely where value can be

THE RIGHT
found. Only then can you take the necessary steps to unleash its
Whether it is the speed, the agility, the simplicity or the cost
true potential.
efficiency of SAP S/4HANA that appeals to you the most,
there can be no doubt that SAPs new business suite delivers
enhanced value and a lower total cost of ownership. PARTNER Our passion, focus on results, pragmatic approach and expertise

FOR YOU?
have gained recognition for our organization as a trusted advisor,
for local SMEs and global corporations alike. At Delaware
Furthermore, SAP will continue to develop new
Consulting, we implement the full SAP solution portfolio and
applications that will only be available on SAP S/4HANA.
have built up extensive knowledge and expertise relating to the
So not migrating will eventually limit your access to new
entire SAP platform over the years. Furthermore, were working
capabilities, and thus hamper your companys future
with SAP on a co-innovation program to help shape the cloud
growth. In conclusion, SAP S/4HANA is the digital
edition of S/4HANA. This way, we continue to emphasize our
core that will future-proof your business.
focus on innovation.

As your long-term partner, we help you to define your roadmap

for SAP S/4HANA, to determine how your company would
benefit from an S/4 HANA solution, whether that should be an
on-premise or a cloud roll-out, and we support you through the
entire migration process. So start imagining and planning right
now.We will help you discover how S/4HANA drives your future
value chain!

15
ABOUT THE AUTHOR
PIETER LOOTENS
Manager Solution Lead S/4
After completing his master degree in computer science, Pieter
Lootens obtained an additional master in corporate economics
and then followed that with the APICS course on supply chain
management.
Pieter has built up extensive knowledge and experience in supply
chain management. He started working at Delaware Consulting
in September 2007, where he joined the SAP team focusing on
Sales Logistics. Pieter has led projects in various industries with
a focus on supply chain management.
Driven by his passion for new, value-adding technologies and ACKNOWLEDGMENTS
products, over this past year Pieter has strongly focused on SAP Pieter would like to thank Michael Bulth, Geert Bogaert, Folker
S/4HANA, SAPs new business suite. Lamote and Tim Leys for their input, insights and reflections
that meaningfully contributed to this white paper.
He follows up on the S/4HANA projects that are ongoing at
Delaware Consulting, both in Belgium and abroad, looking for
synergies and new ways to deliver value for customers.
Delaware Consulting aims to be at the forefront of adapting and
building expertise in new products both in the cloud and on
premise and is piloting the newest cloud solutions internally to
be able to give customers access to the most up-to-date insights.
17
DELAWARECONSULTING.COM