SAP S/4HANA Strategy Update - SAPSA Kraftfullt nätverk

1 CUSTOMERJune 1st, 2017Dr. Wieland Schreiner, Executive Vice President SAP S/4 HANA, SAP SESAP S/4 HANA Strategy Update2 PUBLIC 2017 SAP SE or an SAP affiliate company. All rights reserved. , , ,oranyrelateddocumentandSAP'sstrategyand possiblefuturedevelopments, ,promiseorlegalobligationtodeliveranymat erial, ,eitherexpressorimplied,includingbutnotl imitedto,theimpliedwarrantiesofmerchanta bility,fitnessforaparticularpurpose, ,exceptifsuchdamageswerecausedbySAP ,whichspeakonlyasoftheirdates, 2017 SAP SE or an SAP affiliate company. All rights reserved. WhySAP hasbuilta digital coreSegment of 1 Lot size of 1 LiveAt scaleHyper-AutomatedEmbedded AnalyticsSteer via ExceptionsSimulation & PredictionIn the Cloud On-premise4 PUBLIC 2017 SAP SE or an SAP affiliate company.

2 All rights reserved. SAP S/4 HANA hyper-automated via machine learning intelligenceCash ApplicationSAP S/4 HANA 1702 Stock in TransitSAP S/4 HANA 1708 Contract ConsumptionSAP S/4 HANA 1705 Situational LearningSAP S/4 HANA 1711 Delivered Planned5 PUBLIC 2017 SAP SE or an SAP affiliate company. All rights reserved. Moving to an SAP S/4 HANA centric application landscape raises many questionsCostof migration?Is it complete?Howdo I get there?Value of innovation?Integration?Which solution to use in which use-case?TODAYD eeply implemented Highly interwovenTOMORROWA gileIntegratedText_smallText_smallKey business values of SAP S/4 HANAText_smallText_small9 PUBLIC 2017 SAP SE or an SAP affiliate company. All rights reserved.

3 SAP S/4 HANA isthefastestadoptingproductin SAP customers Every size 25 industries 92 countries From single global to multi-instance Proven by of implementation projects10 PUBLIC 2017 SAP SE or an SAP affiliate company. All rights reserved. SAP S/4 HANA deliveryscheduleAnnualinnovation cycleQuarterlyinnovation cycleSAP S/4 HANAC loud 1702 SAP S/4 HANA Cloud 1608 SAP S/4 HANA Cloud 1611 SAP S/4 HANA Cloud 1711*Continuous innovationsAvailableToday*This is the current state of planning and may be changed by SAP at any time without S/4 HANAC loud 1705 SAP S/4 HANAC loud 1708*SAP S/4 HANA 1709*SAP S/4 HANA 161011 PUBLIC 2017 SAP SE or an SAP affiliate company. All rights reserved. SAP S/4 HANA 1610 Key innovationsExisting & enhanced innovationsNew innovationsEntire S/4 HANA Finance scope to CoreEffective Order Management & BillingIntegrated Extended Warehouse Management The Fiori UX of SAP S/4 HANAI ntegrated Quality ManagementIndustry to Core (DIMP, Oil, Retail)Real time Inventory Manage-ment& Material ValuationAccelerated Material Requirements PlanningAdvanced Availability to PromiseOptimized Portfolio and Project ManagementEmbedded Software in Product DevelopmentSimplified Procurement12 PUBLIC 2017 SAP SE or an SAP affiliate company.

4 All rights reserved. SAP S/4 HANA 1709 Planned Key InnovationsInnovations of Industries in the CoreMaximize Fiori Experience of digital assistanceMachine Learning for automation capability in digital Predictive Analytics as a system of intelligenceIntegrated Transportation ManagementExisting & enhanced innovationsNew innovationsIntegrated Customer Relationship ManagementEnhancement of tools to support projectsEmbedded Analytics for insights to actionSAP S/4 HANA Central Master DataParallel valuation in FinanceEnhanced Purchase Requisition processing PP/DS Graphical planning board+capacity/shift handling13 PUBLIC 2017 SAP SE or an SAP affiliate company. All rights reserved. SAP sModular SuiteSAP FioriSAP HANASAP HANASAP VoraS3 SWIFT HadoopSAP S/4 HANASAPBW/4 HANAB usinessObject Cloud & Digital BoardroomSecurityServicesIntegrationServ icesAnalyticsServicesMobileServicesIoT ServicesCollaboration ServicesMachine LearningServicesUXServicesSAP Cloud Platform IntegrationSAP Cloud ApplicationsCustomer Specific and 3rdParty ApplicationsAPI Business HubMarketplaceBusiness ServicesSAP Cloud PlatformSUGEN Questions: SAP S/4 HANA15 PUBLIC 2017 SAP SE or an SAP affiliate company.

5 All rights reserved. 1. Go-To-Market Strategy SAP s application landscape today is far broader than at any time in its history. SAP has moved beyond core finance and reporting systems and into customer experience, resource and people management, eCommerce and digital engagement. CIO s wishing to adopt and exploit this landscape are faced with a significant and unpleasant challenge: how do they deliver and support these solutions, in a market that has little experience and low capabilities? (Australia) Does SAP have plans to better enable the domestic partner knowledge in/with its full product suite? (SAUG, Australia)2. Transition fromERP (ECC) toSAP S/4 HANA JSUG members typically maintain lots of custom codes in their ERP landscape.

6 There are some tools for efficient conversion. It would be great if there is a list of tools with respective purposes. (Australia) We understand greenfield approach may be better (rather than migration) especially in case we maintain lots of custom codes in current ERP landscape. But condition for each user may be different at detail level. Each user is always wondering which approach they should choose. It would be helpful if SAP can offer some sort of assessment tools that allows users to decide their journey to S/4 HANA with risks and action items. (Japan)SUGEN Questions F2F Meeting, Walldorf, May/June, 2017 Appendix: SAP Readiness Check for SAP S/4 HANA16 PUBLIC 2017 SAP SE or an SAP affiliate company.

7 All rights reserved. 3. Roadmap To what extent will SAP in future support in-memory databases other than HANA? (Netherlands) Please share firmed up details of the in-house release planned later this year, plus currently intended focus/content for the 2018 in-house release (Sweden)4. Roadmap (Industry) What are the plans for functional richness in the S/4 HANA portfolio for construction, energy and engineering companies? When do you think the richness will be on the level of the Business Suite? (Norway) A clear and transparent transition plan and roadmap for the HANA solution, along with all industry verticals, would provide somesurety that it currently causing some business uncertainty. Whilst many roadmaps are becoming available they are in various stages of completeness.

8 When will these roadmaps (HANA by industry) be complete and available? (Australia)5. Roadmap (crossindustry) What will be the Strategy for Plant Maintenance in S/4 HANA? Will new functions become available? Will MRS be automatically integrated in the product? Will it also automatically integrate predictive analysis platform for maintenance defects on assets? (Belgium)SUGEN Questions F2F Meeting, Walldorf, May/June, 2017 Please find latest roadmaps (Industries, LoBs) on SAP Roadmap ( )17 PUBLIC 2017 SAP SE or an SAP affiliate company. All rights reserved. 6. Why SAP S/4 HANA? Over many decades of successfully supporting businesses through ERP solutions built on solid and reliable platforms, designedtodeliver core finance and reporting functionality, SAP is asking for its customers to take a leap-of-faith.

9 Whilst it can be argued thatthe move from ECC to HANA is less about a radical departure from traditional business architecture and much more about improved performance, better integration and far greater functionality, it is still a largely unwelcomed (by business) transition. This situation has notbeen aided by a roadmap that has matured and substantially changed over the past 18 months. (Australia)7. Beyond2025 SAP s Strategy regarding how they support ERP beyond 2025 and relation with Oracle beyond 2020. It is not necessarily one-shot answer. We look for continuous dialogue about this topic. (JSUG, Japan) Can SAP clearly publish a list of what systems and databases they will support post 2025 in an easy to consume manner and howoften is this being updated?

10 (UKISUG, UK&I)Customer feedback indicates that:oThere is still confusion about what is / is not supported post is difficult to find information to confirm maintenance timeframes for products and mixes of products including underlyingdatabase Is S/4 HANA the only solution supported post 2025, or is Suite on HANA also supported?(UKISUG, UK&I)SUGEN Questions F2F Meeting, Walldorf, May/June, 2017 Appendix: SAP S/4 HANA19 PUBLIC 2017 SAP SE or an SAP affiliate company. All rights reserved. Ithasneverbeenthateasy togetstartedSAP ReadinessCheck forSAP S/4 HANAAlso see SAP Note 2290622 Thank Wieland SchreinerEVP SAP S/4 HANA Products & InnovationSAP SENo part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission ofSAP SE or an SAP affiliate information contained herein may be changed without prior notice.