2. ASUG SAP HANA Platform Program The ASUG SAP HANA Platform Program will focus on providing SAP HANA platform education, customer experience, and knowledge sharing both from a business and technical perspective. Join the ASUG SAP HANA Platform Program: bit.ly/HANAPlatformSIG

7. ASUG Center of Excellence Webinar 17 February 2016 Setting Up Your Center of Excellence S/4HANA, Cloud, and Other Stuff Kevin Reilly, ASUG Community Advocate S/4HANA & HANA Platform kevin.reilly@asug.com

8.  There is an entire new set of platforms, applications, and tools that are becoming available, or are already available  How are these items expected to impact the Center of Excellence organization?  Or, will they have any impact at all?  This session will provide a Point of View on how things like S4HANA, Cloud and Fiori may impact the skills, capabilities, staffing, and structure of the Center of Excellence Topics

9. CoE Choices

10. Strategy to Execution and a CoE’s Role Strategic Initiatives Business Leads IT Leads Portfolio Management Project(s) Steering Committee STRATEGY EXECUTION Realized Benefits & ROI VALUE Center-of-Excellence

11. Center of Excellence & Centers of Expertise CxO “Technophile” Business People “Entrepreneurial” Technology People Solution(s) Application Design Center of Expertise Solution(s) Configuration Center of Expertise Center of Excellence (CoE) CEO CIO Solution(s) Code Development Center of Expertise Solution(s) Testing Center of Expertise “Lights On” operations On-premise Infrastructure Cloud Infrastructure Security Network Local, On-shore, &/or Off-shore partners Extensive Collaboration Business Functions & Process Design Center of Expertise Business Data Center of Expertise Strategy & Portfolio Management Center of Expertise Business Users Training Center of Expertise “Run” the Business Center of Expertise Portfolio, Program, and Project Management Center of Expertise Non-CoE IT Entities IT Centers of Expertise Business Centers of Expertise Created by Nick Lagen, VP, CapGemini – Used by Permission

12. Center of Excellence & Centers of Expertise CxO “Technophile” Business People “Entrepreneurial” Technology People Solution(s) Application Design Center of Expertise Solution(s) Configuration Center of Expertise Center of Excellence (CoE) CEO CIO Solution(s) Code Development Center of Expertise Solution(s) Testing Center of Expertise “Lights On” operations On-premise Infrastructure Cloud Infrastructure Security Network Local, On-shore, &/or Off-shore partners Extensive Collaboration Business Functions & Process Design Center of Expertise Business Data Center of Expertise Strategy & Portfolio Management Center of Expertise Business Users Training Center of Expertise “Run” the Business Center of Expertise Portfolio, Program, and Project Management Center of Expertise Non-CoE IT Entities IT Centers of Expertise Business Centers of Expertise FCoE – Functional Center Of Excellence TCoE – Technical Center Of Excellence

13. S/4HANA Effects on the CoE

14.  Speed is really a symptom, not the entire result  Faster processes should lead to org changes  For example: Shorter MRP run times or shorter financial period closes – look to how this impacts the business process  Faster MRP – can you run MRP on-demand? What advantage does that give the company?  Shorter period close – Does this allow financial staff to add value in other ways? More time for analysis?  Don’t focus only on speed. Greater value comes from redesigned business processes. Don’t make HANA solely about speed

15.  Process Identification  New processes introduced in S/4HANA  Simplified  Redesigned  Combined  Fiori UX  More intuitive  Easier Training  Analyze Custom Modifications, User Exits, et al  New functionality may eliminate need for old custom code  Analyze additional products licensed  APO, GATP, Side cars S/4HANA Effects on Functional CoE

16.  BASIS Database Simplifications  No STATISTICS to update  No indexes to balance or rebuild  No aggregates  No duplicate data  Smaller database footprint  Database is smaller in size after S/4HANA  Smaller size means fewer disks to buy  Existing disk space can be recouped  IT Help Desk / Service Desk  Simplified Fiori UX leads to fewer calls S/4HANA Effects on Technical CoE

17.  Hybrid solution  Combines on-premise and cloud solutions together  S/4HANA with SuccessFactors and/or Ariba and/or Concur, etc.  HEC – HANA Enterprise Cloud  Run your entire solution in the cloud  Both Cloud Solutions have similar effects  Turns capital investment into operating expense  On-Premise  Licensing  Hardware  Cloud  Subscription Cloud Effects on CoE

19. This Is About Organizational Change!

20. Why Your CoE Is More Important Than Ever!

21.  Value Realization  More demand to realize the benefits of technology initiatives  Accountability for the benefits becomes more critical  Impacts the approach and management of any project  Collaboration  Integrated systems mean design decisions impact other applications, departments, and/or organizations  Active governance and partnership with the business customer are key components  Orchestration  Cloud applications alter how application portfolios fit together  Cloud also impacts required roles/capabilities of IT organization Why a CoE is More Important than Ever

22. Focusing on those three elements work to ensure the:  Relevancy of IT – as a value generating organization adding to the top-line / bottom-line growth of the enterprise  Relationship continuity with the business – as a customer-focused business partner  Capability of its Resources – by responding to an ever- changing need to adapt Why a CoE is More Important than Ever

23.  Lessons Learned  Things that worked well:  CoE group ensured that IT projects supported business strategy  Gradually CoE group would manage entire project portfolio  CoE members were trusted business partners  Things that were challenging:  CoE helped solve interdepartmental squabbles  But did not make them go away  Not every department provided the right person to CoE team  Existing power base resisted moving decisions to CoE The CoE at a Distribution Company

24.  Organizational maturity is a key component to a well-functioning Center of Excellence  Includes:  People – organization structure, organization focus, governing bodies  Process – operating processes, governance processes  Technology – strategies, tools IT Organization Maturity

25. IT Organization Maturity – Dimensions Tactical / TCO Emphasis Silo Leadership Tactical Capital Projects IT Governance Project Silos Technology IT Organization Limited Use of Shared Services Stand-Alone IT Processes Unique Business Processes Point Solutions On-Premise Solutions Data as a Commodity Reactive Operations Strategic / Value Emphasis Collaborative Leadership Strategic Capital Projects Business Governance Project Portfolio Business Process IT Organization Extensive Use of Shared Services Integrated IT Processes Harmonized Business Processes Integrated Solutions Cloud Solutions Data as an Asset Predictive Analytics Less MatureMore Mature

26. Key Takeaways

27.  HANA is not just about speed. It’s about process change.  All migrations to S/4HANA need OCM support and attention  Analyze S/4HANA functionality for process improvements  Update training materials to include Fiori UX changes  Potential reduction in technical support staff  HANA Basis work can be less  Cloud changes  Hybrid environment can implement quicker in some cases  Also moves some support from internal to cloud vendor  Moves capital investment to manageable expense  Migration to cloud moves selected headcount to cloud provider Key Takeaways

28.  Value Realization  Anchor initiatives and projects to explicit value targets  Ensure post-project value realization is tracked  Establish simple & effective Portfolio Management tools and processes  Collaboration  Active governance and collaboration between IT and the business customers are key components  Structure incentive systems to encourage collaboration & discourage silos  Orchestration  Cloud applications alter how application portfolios fit together  Engage the entire organization in mission-critical initiatives  Establish clear project execution tools, and roles & responsibilities Key Takeaways

29.  Adds value to your company  Finance activities are quicker, more streamlined  SAP VE group measures 25% faster close, 61% less expense  Recent November release  Was called Simple Logistics  Now called “S/4HANA Enterprise Management”  Expands the value-add into rest of enterprise  Simplifies the IT workload  Less DBA work for BASIS folks  Smaller footprint of database  Simplifies the Processes for just about everyone else ASUG’s Take on S/4HANA

30. Questions and Answers

31. Kevin Reilly Team Reilly, LLC Kevin@TeamReilly.net