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CLEAN THE CORE –MOVE THE CORE:HOW TO ACCELERATELARGE SAP S/4HANAPROGRAMSJörg Kaschytza, SNP SEThe Data Transformation Company

WHAT WE‘LL COVER TODAYLet‘s compare the traditional with the accelerated waySAP S/4HANA Programs in complex environments: the obstaclesWhy is the Core so important?Differences of both waysHow to plan and design the accelerated wayAnalyse & BenchmarkDesign – Clean the CoreHow to run the accelerated wayMove the Core – how to set up a global SAP S/4HANA Rollout programFactory Approach to industrialize the program initiative 2022 SNP I The Data Transformation Company – www.snpgroup.com3

Green – classicapproachDegree of ChangeSAP S/4HANA programs in complex environments – fromGreen and Brown to Blue SNP has accomplished in 20/21 more than 210 S/4projects. Ca. 40 % of these started with a newtemplate / system. Existing SAP ERP systems with high complexityregarding customizing / custom code Long complex maintenance cycles Classical migration to keep these obstacles is not anoption for the vast majority Classical Greenfield projects with an extraordinarylong template creation rollout implementationIs there a way to Reduce programduration shorten the template creation process? reduce the program duration? run them in an industrialized way? keep proven building blocks andBrown modernize significantly in the same time?Program Duration get back to standard where possible?

How companies plan to move to S/4 (Study S/4HANA, IDG,April 2022, 300 qualified interviews)

Why is the Core so important?BLUEFIELD offers a software based approach to modernize and polish your proven existing system as an easier to achieve starting pointfor your new SAP S/4HANA platform.INNOVATEUse the chance to identify areas of modernization, addressingtopics for processes (customizing & code) and data quality.Keepthe besttransformthe restRENOVATEAdress and identify areas to optimize and to simplify whereneeded. Analyze different system usage across your saporganizational structure. Go back to standard where needed.ELIMINATEAnalyze unused customizing, custom code, unused SAP orgobjects to simplify and reduce the future template. 6

SNP accelerates the transformation steps dramaticallyELIMINATERENOVATEINNOVATECLEAN THE COREMOVE THE COREBEYOND THE CORE Set up a clean template to start withsoftware support (Empty Shell) Re-platforming to newinfrastructure model Define Custom Code strategy (core/ sidecar) Lift & Shift w/o NZDT Modernize and / or go back tostandard Use and enhance proven processbuilding blocks Clean & qualify data (de-duplication,harmonization) Archive data & documents Selective Move to SAP S/4, BW/4 Harmonize to support businessmodel changes Move to SAP RISE Define a Dual Maintenance to syncbetween source and targetarchitecture Next generation Data Warehouse New Analytics Data Science on SAP data Build SAP-centric innovation appson your platform of choice Housekeeping, Archiving, Decommission source applications Optimization of Maintenance Industrialize the roll-in projectsOPERATE IN A HYBRID WORLD 7

Technical concept of Empty shell creation with SNPCrystalBridgeSAP PRD ECCECC Empty shellCustomizing & CustomCode cleansingAnalysisS/4H Empty shell1.2.3.Creation of ECC EmptyshellECC Empty shellS/4H upgradeClean the Core 2022 SNP I The Data Transformation Company – www.snpgroup.com

ValueLet‘s compare the approaches: Gain speed in yourtransformation projects with higher reliability and maturityAnalyze & simulate &benchmarkClean, remediate & innovateTransform & migrate & validateEarlier project startAchievehigher valueIndustrializedimplementationapproachSNP Clean theCore with cleansedcustomizing andcustom codeInstant analysis with SNPCrystalBridge to acceleratetemplate discussion processClassical template creation Downtime optimization Big Bang vs. Wavebased Go-live transitionClassical TemplateRolloutLegendSNP Clean the CoreTraditional approachTime

Concept & Design – Clean Template DesignSolution Definition & BuildPilot ImplementationFirst Go LiveTransition ScenariosCluster Definition, Regions, SystemsInitial Template LocalizationPrepare Template for PilotClean Core withiterative prototypingEmpty Shell reorgTest MigrationsCUSTOMERSI /PARTNERSNPCUSTOMERSI /PARTNERSNP4CUSTOMERTemplate Readiness CheckRelease for ImplementationCUSTOMERCUSTOMERFit to StandardAnalysisCUSTOMERSI /PARTNERIdentification ofChange Necessities1SI /PARTNERAnalyze65PLANWith CrystalBridgeDesignSI /PARTNERSNPIndustrializationTransformationFactory / RolloutSNP798Governance ModelMake change sustainable32Target Process ModelDefinition of “To Be”Business ProcessesSI /PARTNERCUSTOMERSynchronization TemplateMigration Rule DesignMake change sustainableCUSTOMERCUSTOMERSI /PARTNERSNPSI /PARTNERCUSTOMERTransformBUILDWith CrystalBridgeValidateSNPSI /PARTNERRUNOperateWith CrystalBridge

In a Nutshell – The Factory ApproachSNP Data Transformation industrializes complex programsSAP S/4HANA@CLIENTCore Team GlobalTeam region 1TransformationFactory Lead SNPTeam region 2Partner XY region .Team region .Onshore – nearshore - offshoreProgram ManagerCustomervia SNP Mission ControlProgram & Project ReportingCLIENTGovernanceSNP Transformation Factory Methodology – Analysis – Data Provisioning – Transformation – Testing – Cutover - GoLiveSNP Training Academy – Standardized Curriculae - e-Learning – Class Room - CertificationSNP CrystalBridge Data Transformation Platform11SNPPartner

The Factory Approach Is Keyfor Transformation JourneysSustainable and scalable infrastructure for multiplecomplex migration projects with customers and partners. Standardized methodology and governance Industrialized services Intelligent software platform12

Two project examples to runCustomer / Industry Automotive / OEMProject ScopeMigration Approach Several CA-Mergesinto one new CoA onS/4 Wave-based Harmonization of FISystems to one consol.S/4 FI TemplateChallenges Merge of 4 SourceSystems into one newS/4 Group Template Industrializedpreconfigured Roll-insBLUEFIELDProject Status Selective DataMigration 1st Wave Go-LiveApril 22 Time-based Selectionfor current andprevious Year 2nd wave plannedsept 22 Accelerated templatedefinition New Group Currency Modules: FI / CO Hospital CA-Merge into onenew CA on S/4 Change /Harmonization Chartof Accounts CC-Merge Plant-Merge Business PartnerImplementation Modules: FI/ CO, MM,WmD (xFlow) Wave-based Merge of 70 CA’s intoone Group CA 2 Source Systems 1st wave S/4 Templatewith migration ofseveral CCs and Plantsand replacement of oneSource System 2nd wave: Migration ofCCs; Plants from 2.System with Merge intorunning S/4 System Selective Data Migraton: 2nd Wave /System running Flexible & Time-BasedSelection of 2 – 3 FiscalYears Accelerated templatedefinition

Use CasesHow SNP sustains the clean core initiativeProcess IntegrationData IntegrationAnalytics IntegrationClean Template – get to a faster andmore mature foundationData Preparation & Quality Assurance& HarmonizationEnable Big Data - Warehouse ModernizationStandardize & Harmonize & ModernizeProcessesArchiving SAP Business Suite –keep data growth under controlData Lake Feed – from SAP and Non-SAPAdjusted SAP Org ModelRetention Management / DecommissioningFoundation to run new business models– Data ScienceSelective Migration – from full history toOP & Master Data MigrationData Tiering – lean storageAbility to execute next generation analyticsEnables MDG & Central FinanceHouse Keeping: remove and cleanobsolete dataAnalysis of global value chain –operational transfer pricingDocument ProcessingCompliant legal data holdCloud enabled: Hyperscalers, snowflake, etc.Analysis Monitoring Optimization Automation Downtime ReductionSNP CrystalBridge Transformation Platform 2022 SNP The Data Transformation Company – www.snpgroup.com

Cost SavingsSNP CrystalBridge brings essentialvalues for complex S/4 programsAnalysis & Migration FactoryDowntime OptimizationFlexible CutOver ManagementFact-based decisionsTRANSFORMATIONIndustrial ApproachVERIFICATIONStandards & SimplicityThe following SNP recommendations have shown significantinfluence to reduce the time frame and save costs in otherglobal customer programs. Current project initiatives show a time reduction of more than40 % of the overall project duration.Piloting via prototyping The Clean Core preparation achieves a faster templatematurity leading to higher acceptance by businessClustering /industrialized rollout strategyProject Status viaSNP Mission ControlPREPARATION The biggest accelerator is the setup of an Analysis andMigration Factory in order to prepare and industrialize thedata migration.Clean Core preparationDecommissioning ofSNP Automated Testingsource ERPsCompliant proof documentation Use SNP CrystalBridge Data Transformation Platformcontinuously for your S/4HANA initiative as the central hub. Use Mission Control as the realtime project reporting andquality assurance platform and as Guided Procedure for allparallel running projects.Gain faster Template Maturity Downtime optimization per Go-Live leads to businessbenefits. SNP offers in addition a Zero Downtime Approach onproductive S/4HANA environmentTime Savings

TRANSFORMATION GESTALTENBEDEUTET: bewährte Pfade überprüfen und anpassen,um Änderungen in Geschäftsmodellenzielgerichtet, effektiv, effizient undbeschleunigt mit Business und IT gemeinsamzu begleiten 2022 SNP I The Data Transformation Company – www.snpgroup.com

Handling of Customizing(Discussion Paper)Process of initial target system creation1.a) System copy of productionECCproduction datacopy1.c) Selective dataand customizingmigrationSBX-S IIscope based appdata andcustomizing2) Empty targetSBX-S IIIscope basedcustomizing only,no app data3) SUM/DMO Upgrade to S/4HANA4.a) Comparison to identify customizing affected by the upgrade4.b) Initial custom code remediation and cleansingSBX-TS/4Scope basedcustomizing only,no app dataDEV-SDual MaintenanceSBX-S I1.b) Empty targetwith mini client4.c) transports for “E” tables4.d) is declared the golden copy 2021 SNP I The Data Transformation Company – www.snpgroup.comDEV-TGolden copyTransportsQA-STransportsPRD-S

Custom Dev Renovation vs. InnovationCustom Dev RENOVATIONCustom Dev INNOVATION Because of change to HANA as DB Custom apps, that you wouldn’t built in ABAP becausethe cloud gives you superior capabilities. Because you use tables / objects that are changes(simplification items) Because you use tables / objects that are discontinued E.g. ABAPs that create lists (e.g. ALV) only, users onlyusing Z-ABAPs, ABAPs creating files E.g. voice input or output, text analytics, collaboration,

Digital Cloud Coupling (DCC) ScanShould stay on SAPNo-DCC Use and/or integrating w/standard SAP functions HANA is not the best DB(too expensive and/or toobig)Gray zone- Further analysis is neededto determine if objectsshould stay in SAP or moveto the cloudShould move to CloudDCC candidates Need or good use ofinnovation UI/UX simplification Data intense Stand-alone or easy tocapsulate Reporting