Preface

17

Objective of This Book

18

Who This Book Is For

18

How This Book Is Organized

19

Acknowledgments

21

1 SAP S/4HANA Fundamentals

23

1.1 Transition into an Intelligent Enterprise

24

1.1.1 Preparing Businesses for a Fast-Changing Future

25

1.1.2 The Evolving Nature of Data

26

1.1.3 Adoption of Intelligent Technology

26

1.2 Key Technologies

27

1.2.1 SAP S/4HANA Cloud

27

1.2.2 SAP HANA

30

1.2.3 SAP Fiori

32

1.3 Deployment and Operating Models

35

1.3.1 Cloud

36

1.3.2 On-Premise

38

1.3.3 Hybrid

38

1.3.4 Deployment Considerations with SAP S/4HANA

39

1.4 Deployment Approaches

40

1.5 Summary

43

2 Introduction to SAP Activate

45

2.1 SAP Activate Key Concepts

45

2.2 Components of SAP Activate

51

2.2.1 Ready-to-Run Business Processes

52

2.2.2 Methodology

54

2.2.3 Tools for Adoption and Extensibility

56

2.3 SAP Activate Phases and Project Management

57

2.3.1 Discover

58

2.3.2 Prepare

59

2.3.3 Explore

59

2.3.4 Realize

60

2.3.5 Deploy

61

2.3.6 Run

62

2.3.7 Project Management

62

2.4 Golden Rules for Implementing SAP S/4HANA

64

2.4.1 Rules and Benefits

65

2.4.2 Rule 1: Foster a Cloud Mindset

67

2.4.3 Rule 2: Use Preconfigured Solutions and Leverage SAP Fiori

68

2.4.4 Rule 3: Use Modern Integration Technologies

69

2.4.5 Rule 4: Use Modern Extensibility Technologies

70

2.4.6 Rule 5: Ensure Transparency on Deviations

72

2.4.7 Governance to Keep the Core Clean

72

2.5 SAP Activate Methodology Taxonomy

76

2.5.1 Workstreams

77

2.5.2 Deliverables

79

2.5.3 Tasks

80

2.5.4 Accelerators

81

2.6 SAP Activate Community

82

2.6.1 Register and Follow the SAP Activate Community

82

2.6.2 Find Your Way in the SAP Activate Community

83

2.6.3 Ask Questions and Find Answers

84

2.6.4 How to Contribute Blog Posts

85

2.7 SAP Activate Training and Certification

85

2.8 Summary

87

3 Accessing SAP Activate

89

3.1 Roadmap Viewer

89

3.2 SAP Best Practices Explorer

95

3.2.1 Positioning of Content

96

3.2.2 SAP S/4HANA Content Structure

96

3.2.3 Localizations and Languages

101

3.2.4 Tool Features

104

3.3 SAP Cloud ALM

107

3.3.1 Why SAP Cloud ALM?

107

3.3.2 SAP Cloud ALM for Implementation

108

3.3.3 SAP Cloud ALM for Operations

111

3.4 SAP Solution Manager

114

3.4.1 Application and Business Process Operations

115

3.4.2 Data Volume Management

116

3.4.3 Change Control Management

116

3.4.4 Custom Code Management

116

3.4.5 IT Service Management

117

3.4.6 Landscape Management

117

3.4.7 Process Management

117

3.4.8 Project Management

118

3.4.9 Focused Build and Focused Insight

118

3.4.10 Test Suite

119

3.5 Summary

120

4 Starting with a Working System

121

4.1 SAP Best Practices for SAP S/4HANA

121

4.1.1 SAP S/4HANA Cloud

121

4.1.2 SAP S/4HANA

130

4.2 Enterprise Management Layer for SAP S/4HANA

134

4.2.1 Structure of Content

135

4.2.2 Updates

137

4.2.3 Deployment Options

137

4.3 Summary

138

5 Configuration, Data Migration, Extensibility, Integration, and Testing

139

5.1 Business-Driven Configuration

139

5.1.1 SAP Central Business Configuration

141

5.1.2 SAP S/4HANA Cloud

142

5.1.3 SAP S/4HANA Cloud, Private Edition

146

5.1.4 SAP S/4HANA

150

5.2 Data Migration

152

5.2.1 Data Migration Preparation

153

5.2.2 Data Migration Execution with Staging Tables

155

5.2.3 Data Migration Execution Using Direct Transfer

157

5.3 Extensibility

158

5.3.1 Key User Extensibility

158

5.3.2 Developer Extensibility

159

5.3.3 Side-by-Side Extensibility

160

5.3.4 Artificial Intelligence Technologies

160

5.3.5 Tools and Implementation

162

5.4 Integration

164

5.4.1 Prepare

166

5.4.2 Explore

167

5.4.3 Realize

168

5.5 Testing

168

5.5.1 SAP S/4HANA Cloud

168

5.5.2 SAP S/4HANA Cloud, Private Edition

172

5.5.3 SAP S/4HANA

173

5.6 Summary

176

6 Agile Project Delivery

177

6.1 Roles, Responsibilities, and Governance

177

6.1.1 Roles

178

6.1.2 Events

182

6.1.3 Artifacts

184

6.2 Creating and Managing the Backlog

184

6.3 Agile Realization

187

6.3.1 Defining Release and Sprint

187

6.3.2 Anatomy of a Sprint

189

6.4 Definition of Ready and Done

192

6.5 SAP Activate in a Scaled Agile Environment

195

6.5.1 Common Principles in SAFe and SAP Activate

196

6.5.2 Alignment Points for Each Level of SAFe

197

6.6 Summary

198

7 New Implementation of SAP S/4HANA

199

7.1 New Implementation of SAP S/4HANA Cloud

199

7.1.1 Deployment Approach Overview

200

7.1.2 Discover Your Solution

201

7.1.3 Prepare Your Project

204

7.1.4 Explore the Solution

213

7.1.5 Realize Your Requirements

225

7.1.6 Deploy Your Solution

245

7.1.7 Run Your Solution

250

7.2 New Implementation of SAP S/4HANA Cloud, Private Edition

254

7.2.1 Deployment Approach Overview

254

7.2.2 Discover Your Solution

256

7.2.3 Prepare Your Project

259

7.2.4 Explore the Solution

264

7.2.5 Realize Your Requirements

269

7.2.6 Deploy Your Solution

275

7.2.7 Run Your Solution

277

7.3 New Implementation of SAP S/4HANA

279

7.3.1 Deployment Approach Overview

280

7.3.2 Discover Your Solution

283

7.3.3 Prepare Your Project

290

7.3.4 Explore the Solution

296

7.3.5 Realize Your Requirements

314

7.3.6 Deploy Your Solution

333

7.3.7 Run Your Solution

337

7.4 Summary

340

8 System Conversion and Selective Data Transition to SAP S/4HANA

341

8.1 Deployment Project Overview

342

8.2 Discover Your Solution

345

8.2.1 Strategic Planning

345

8.2.2 Trial System Provisioning

347

8.2.3 Application Value and Scoping

347

8.3 System Conversion

352

8.3.1 Prepare Your Project

353

8.3.2 Explore the Solution

363

8.3.3 Realize Your Requirements

383

8.3.4 Deploy Your Solution

396

8.3.5 Run Your Solution

399

8.4 Selective Data Transition

402

8.5 Summary

408

9 Deploying Hybrid System Landscapes

409

9.1 What Is a Two-Tier ERP Setup?

410

9.1.1 Corporate Headquarters and Subsidiary Setup

412

9.1.2 Central Services Setup

412

9.1.3 Supply Chain Ecosystem

413

9.2 Move Options

415

9.3 Master Data

417

9.3.1 Data Replication Framework

418

9.3.2 API-Based Replication

420

9.4 Finance

422

9.4.1 Financial Planning

422

9.4.2 Advanced Financial Closing

430

9.4.3 Intercompany Reconciliation Automation

432

9.4.4 Financial Consolidation

434

9.4.5 Centralized Payments

440

9.4.6 Supplier Financing

442

9.4.7 Cash Visibility of Subsidiary at Headquarters

443

9.4.8 Treasury Integration

444

9.4.9 Global Trade

446

9.4.10 Central Finance Compliance Management

447

9.4.11 Central Privacy Governance

449

9.4.12 Intelligent Real Estate

450

9.5 Sales

451

9.5.1 Subsidiary as a Local Sales Office

452

9.5.2 Drop Shipping

453

9.5.3 Returns Handling

458

9.6 Services

460

9.6.1 Service Order Management

460

9.6.2 Repair Order Integration

463

9.6.3 Sales and Installation

466

9.7 Procurement

469

9.7.1 Procurement Handled Directly by Subsidiary

469

9.7.2 Centralized Procurement at Headquarters

470

9.7.3 Centralized Contracting from Headquarters

473

9.7.4 Centralized Scheduling Agreements from Headquarters

475

9.8 Manufacturing

477

9.8.1 Production at Subsidiaries

477

9.8.2 Assembly at Subsidiaries with Components Provided by Headquarters

480

9.8.3 Integration with Manufacturing Execution Systems

483

9.8.4 Just-in-Time Calls

485

9.8.5 pMRP with Scheduling Agreements

487

9.9 Supply Chain Transportation Management

488

9.10 Integration

490

9.10.1 Integration Approaches

491

9.10.2 Monitoring and Extensibility

493

9.11 Sustainability Product Footprint Management

495

9.12 Analytics and Reporting

497

9.12.1 Analytics via SAP Business Warehouse Tools

498

9.12.2 Central Analytics on SAP BTP

499

9.12.3 Central Analytics on SAP Analytics Cloud

500

9.12.4 Ad Hoc Custom Reporting

501

9.13 Accelerators

501

9.13.1 Download Accelerators

502

9.13.2 Master Data Handling with SAP BTP Workflows

503

9.13.3 Finance Master Data Replication

503

9.13.4 Purchase Order to Sales Order Automation

504

9.13.5 Billing Document-Supplier Invoice Automation

505

9.13.6 Business Partner Replication Using Cloud Integration

505

9.14 Summary

505

10 Organizational Change Management

507

10.1 OCM and Digital Transformation

507

10.2 OCM Activities in SAP Activate

508

10.2.1 Discover

509

10.2.2 Prepare

510

10.2.3 Explore

511

10.2.4 Realize, Deploy, and Run

513

10.3 Transition to the Customer Center of Expertise

514

10.3.1 Organizational Readiness in the Customer Center of Expertise

515

10.3.2 Capabilities Framework

515

10.3.3 Roadmap for Organizational Readiness

517

10.3.4 New Roles with SAP S/4HANA Cloud

518

10.4 Team Enablement and Self-Enablement

520

10.5 Enablement Content Development with SAP Enable Now

522

10.6 Summary

523

11 SAP Activate for Other SAP Products

525

11.1 SAP Activate for SAP SuccessFactors

525

11.2 SAP Activate for the Intelligent Enterprise

528

11.3 SAP Activate for SAP Analytics Cloud

529

11.4 SAP Activate for SAP S/4HANA Upgrade and Product Integration

531

11.5 Additional SAP Activate Methodology Roadmaps

533

11.6 Summary

533

Appendices

535

A SAP Activate Certification Preparation

535

A.1 Exam Structure

535

A.2 Practice Questions

536

A.3 Practice Question Answers and Explanations

547

B The Authors

555

B.1 Contributors

556