Unit 1

Foundational Concepts of Cloud Computing

Introduction to Cloud Computing

Cloud computing is the delivery of applications, platforms, data storage, operating systems, and
other computing resources over the Internet. In the cloud model, you pay a regular subscription fee
to consume certain services from a third party provider. This is similar to how you consume services
in your home such as water and electricity. You pay the utility provider on a monthly or quarterly
basis, and the provider is responsible for delivering services to you, and maintaining the
infrastructure necessary to deliver those services (public water pipes, power lines). If there is an
issue, you would contact the service provider for a resolution. For example, if there is a power
outage due to a thunderstorm, the utility provider is responsible for troubleshooting and taking the
necessary steps to resolve the issue and reinstate your service.

This is a stark contrast to the traditional on-premise model, where the customer is responsible for
purchasing and maintaining the server(s) where the software is installed, and the software itself. This
includes setting up redundancies to back up data, and security measures to protect both the physical
servers on site, and the software in the virtual space. For example, if the customer's server crashes
and needs to be rebooted, an employee within the organization must handle this task, and all
employees using the software wouldn't be able to access the system while it's down. What if data
was lost during the crash? For a large organization, it may be feasible to budget for a team of people
to maintain the servers, software, redundancies, and security, but small and mid-size organizations
need a cost-effective solution where they know their data is safe and their applications are accessible
when they need them. Large organizations also look to cloud software to help them reduce the cost
of maintenance while gaining the benefits described in the table below:
Benefit Description

Increase or decrease the storage space and computing power you need to meet
Elasticity
fluctuating workload requirements.

Minimize hardware and IT (Information Technology) department costs; only pay for
Affordability
what you use.

Availability 24 x 7 x 365 system access from anywhere, on any device.

Improve compliance, protect data, and mitigate risk with continuous security
Security
updates from the cloud provider.

Rapidly adopt new technologies to innovate faster, while simplifying the IT

Innovation
department's maintenance responsibilities.

Set-up cloud system(s) to quickly react to changing market conditions and business
Agility
needs.

Where does your data live?

Where do these "computing resources" live? Software needs to be installed in a physical server,
which ultimately needs access to a power outlet to turn on and function. Imagine a building with
rooms and rooms full of servers - this is called a Data Center. A cloud software provider either owns
their own data centers, contracts with third-party data center providers to use a certain number of
their physical servers, or both.
There are three major components in a data center:

• Power Supply: The data center is connected to two separate grid sectors operated by the
local utility company. If one sector fails, the second one continues to supply power. The data
center also houses 13 diesel generators in a separate building. Together, they produce a total
of 29 megawatts.

• Cooling: All electronic components and processors generate heat when operated. If the heat
is not dissipated, the processor's efficiency may decrease to the point that component(s) fail.
Therefore, cooling a data center is essential - and costly, due to the concentrated computing
power.

• Controlled Access: SAP uses state-of-the-art technology and rigorous security to protect data
virtually and physically against data breaches, fires, terror attacks, and other threats. Our
data centers meet the highest security standards.

Additional Security Measures

Integration, security, and performance between solutions located in different cloud data centers

All communication between Data Centers is encrypted by industry measures. The detail of
implementation varies by solution and data flow.

Backup retention procedures

SAP conduct backups in the form of a disk-to-disk copy, which enables rapid data creation and
recovery. In addition to full backups done on a daily basis, we create interim backup versions several
times each day. We then archive these at a secondary data center location for security purposes.
Customers can choose where their primary and secondary data centers are located. Please note that
locations vary by product - see the availability map here.

Monitoring and logging access to SAP Data Centers

SAP data centers are monitored around the clock with video cameras at every entry point. We use
these cameras to record and monitor each access event and log this in our access system for 90
days. Single-person access and "mantrap" systems provide access only to authorized individuals.
Technicians can enter special rooms using custom-configured ID cards. High-sensitivity areas require
authentication by means of biometric scans.

Technical security features

The multilayered, partitioned, proprietary network architecture permits only authorized access with:

• A Web dispatcher farm that hides the network topology from the outside world.

• Multiple Internet connections to minimize the impact of distributed denial-of-service (DDoS)

attacks.

• Layered security measures that continuously monitor solution traffic for possible attacks.

• Multiple firewalls that divide the network into protected segments and shield the internal
network from unauthorized Internet traffic.

• Third-party audits performed throughout the year to support early detection of any newly
introduced security issues.
 Differentiating Cloud Deployment Models

Cloud Deployment Models

Deployment Models: Public, Private, and Hybrid Cloud

There are three primary deployment models: Public Cloud, Private Cloud, and Hybrid Cloud.

Public Cloud

Public cloud software typically runs in a multi-tenant server, where multiple tenants, or customers
share the resources of the server. This is similar to an apartment building where multiple tenants live
within the same physical infrastructure and share certain resources, but each tenant has their own
key to a secure unit within the building. Maintenance of the building and apartment units is factored
into the rent paid by tenants and taken care of when tenants need it. In public cloud, each customer
has their own "cloud container", where their applications and data are completely hidden from the
other customer tenants. Because customers are sharing some of the same computing resources and
the cloud provider takes care of maintaining the software and infrastructure, public cloud generally
has the lowest total cost of ownership (TCO).

Private Cloud

For on premise software, the license is perpetual, meaning the customer is purchasing the solution
for a one-time fee "into perpetuity" (forever). The customer is responsible for purchasing and
maintaining the physical server(s) where the software will be installed on site, and installing and
maintaining the software itself. The software provider may release patches and upgrades, but it's
completely up to the customer to decide when/if they will install them.

Private cloud software runs in a single tenant server, where only a single tenant (customer) uses the
resources of the server. The software runs in a private network protected by a firewall, which is very
similar to an on premise system. When differentiating between private cloud and on premise
software, ask yourself these questions:

• Is the software license perpetual or a subscription?

• Who is responsible for maintaining the infrastructure (server(s)) where the software is
installed?

For private cloud software, the license is subscription-based, meaning the customer pays a fee at
regular intervals, through the end of their contract period. The physical servers are located off-site in
a data center somewhere in the world, and the subscription fee is paid to access and use the
software located in the remote server(s) over the internet. The cloud provider is responsible for
maintaining the infrastructure and guaranteeing the software is available the percentage of time
defined in the service level agreement (SLA) (usually 99.5 - 99.9%). The cloud provider is responsible
for certain maintenance activities with the software defined in the SLA, but there is flexibility for
customers to choose to take over some tasks, or even request the cloud provider to handle
additional tasks for a fee.

A differentiator between private and public cloud is the level of customization allowed in the system.
Private clouds tend to offer more flexibility than public clouds because the software lives in a single
tenant server, rather than a multi-tenant server. If public cloud is an apartment complex where you
share some resources with your neighbors, private cloud is a single family home on a plot of land. In
an apartment, you can make customizations within the constraints of your unit, but you cannot make
major structural changes that could affect the other tenants. With a home, you can build an addition
or change the exterior, because you are the only tenant in the space.

Private cloud software tends to have a lower TCO than on premise software, because you are
outsourcing some of the technical maintenance activities to a cloud provider. However private cloud
has a higher TCO when compared to public cloud software because you are solely responsible for the
cost of maintaining the server where your software lives, and customers usually build in more
customizations that have to be maintained over time.

Hybrid Cloud

A hybrid cloud includes both cloud (public or private) and on premise solutions, often from multiple
providers. Most customers will have a diverse landscape consisting of a combination of different
solutions that need to be integrated. Our customers can leverage the SAP Business Technology
Platform to develop and host cloud-native integrations and applications to ensure data is fully
integrated across their software solutions.

Differentiating Cloud Computing Services

Cloud Computing Services

Computing Services: SaaS, PaaS, and IaaS

There are three primary computing services: Software as a Service (SaaS), Platform as a Service
(PaaS), and Infrastructure as a Service (IaaS).

A Software as a Service (SaaS) is when a cloud provider hosts applications and makes them available
to customers to use over the internet. SaaS software is designed to facilitate customers
accomplishing specific end-to-end activities. The process flows defining who is responsible for each
task and which apps to use to accomplish different tasks are already built in the system. A customer
runs their data through the defined processes, similar to how water in a river follows the path that's
been carved into the surrounding landscape. Customers can access SaaS applications from their web
browser, and the SaaS provider is constantly developing new enhancements and features with the
latest technology. For SAP's public cloud SaaS solutions, we install upgrades on a regular schedule in
all customer systems. For our SAP S/4HANA Cloud, Private Edition solution, we handle the technical
upgrade activities, but let each customer individually decide when they are ready for an upgrade to
be installed (with an upgrade being mandatory at least once every 5 years).

A Platform as a Service (PaaS) is when a cloud provider hosts a development platform on its own
infrastructure and makes the platform and services that run on the platform available to customers
over the internet. This is not a SaaS solution with defined process flows, but a development space
where a customer subscribes to a specific service and uses the development tools available to create
something using that service. For example, if I want to design a mobile app that consumes data from
my SaaS solution and can run on iOS and Android devices, I would subscribe to a service that
supports mobile app development. Within the service, I can develop, configure, and manage my new
mobile application. Another consideration is how the mobile app consumes data from my SaaS
solution, and whether or not the app has the ability to update certain fields directly in my SaaS
solution. To make sure the app can consume and send data, I would also need to subscribe to an
integration service to develop and run a custom integration. The primary users of a PaaS are
developers who choose which services to subscribe to and access the PaaS over the internet.

An Infrastructure as a Service (IaaS) is when a cloud provider hosts servers, storage, and/or other
virtual computing resources, and makes them available to customers to consume over the internet.
This is beneficial, because a customer can "rent" access to a server on a pay-per-use basis and avoid
the expensive up-front cost of purchasing physical hardware and the technical knowledge required
to set it up. For example, if I have thousands of pictures that take up too much space on a laptop
hard drive, I could subscribe to a document storage service like iCloud, Google Drive, Dropbox, or
others and upload all my photos there. The IaaS provider is delivering a storage service that runs on
their servers. They host the infrastructure and handle tasks like system maintenance and backups so
customers don't have to.

SAP Products Mapped to Computing Services

Let's take a look at how different SAP solutions map to the three computing services: SaaS, PaaS, and
IaaS:
Some of SAP's SaaS solutions are:

• SAP S/4HANA Cloud is Enterprise Resource Planning (ERP) software to support customers in
managing their core business activities across the areas of Finance, Sourcing and
Procurement, Sales, Professional Services, R&D Engineering, Manufacturing, Supply Chain,
Transportation Management, and Warehouse Management. SAP S/4HANA is the solution,
and it can be deployed in a public cloud, a private cloud, or on premise.
• SAP SuccessFactors is Human Capital Management (HCM) software to support customers in
managing their people from the day an employee is recruited, hired and onboarded to the
day they retire and are offboarded. This includes a suite of products to address core HR
activities (Employee Central), performance and goal management, learning, onboarding and
offboarding, performance-based variable pay and compensation, and workforce analytics.
• SAP Fieldglass is a Vendor Management System (VMS) that helps companies find, engage,
and manage external contract workers. While a small volume of contingent employees can
be managed within SAP SuccessFactors Employee Central, SAP Fieldglass is especially
beneficial if an organization needs to select, onboard, pay, and offboard a large volume of
employees working short to mid-term contracts. For example, a large retailer staffing up for
the holiday season.
• SAP Ariba is a marketplace for business-to-business transactions (sourcing and procuring
materials and/or services). SAP Ariba runs the Ariba Network where buyers and suppliers can
find each other, do business, and integrate the data with the core ERP system.
• SAP Concur is a travel, expense, and invoice management solution that simplifies and
automates spending processes. For example, use SAP Concur to schedule a flight, hotel, and
rental car for a business trip and bill the expense to your cost center. After the trip, submit
your expense report following the guidelines and restrictions set by your organization within
Concur to get reimbursed.
• SAP Customer Experience (CX) is Customer Relationship Management (CRM) software to
support businesses in managing and maintaining the relationship with their customers. A
suite of products within CX cover the lifecycle of the customer relationship, including gaining
and retaining customers through marketing activities, selling products or services through an
e-commerce platform, managing and forecasting sales demand, delivering services to
customers, and ethically collecting and protecting customer data.

Note

SAP has the largest portfolio of cloud SaaS software in the world - these are only a few
examples. Find the complete list of solutions here. This includes solutions like SAP Signavio, SAP
Business Network, SAP Commerce Cloud, SAP Integrated Business Planning, and many others.

SAP's PaaS solution is the SAP Business Technology Platform (BTP), which enables developers to
develop, host, and run applications, integrations, databases, and other technical solutions. For
example, build a custom application to solve a business challenge and securely integrate the app
into existing cloud or on premise applications. There are over 90 different services available on SAP
BTP that can be used to enhance and extend SAP and non-SAP applications. Find the complete list of
services in the SAP Discovery Center.

SAP's managed IaaS solution is SAP HANA Enterprise Cloud (HEC), which is a single-tenant private
cloud that can be used to host different SAP applications. When a customer purchases the private
cloud deployment of SAP S/4HANA (SAP S/4HANA Cloud, Private Edition), it's actually the SAP
S/4HANA on premise software hosted in SAP HEC. We call HEC a "managed" IaaS, because it's
specifically designed to host SAP applications and we deliver a variety of technical maintenance and
management services for those SAP applications to customers. With HEC, customers have the
system access and control typical for on premise software in addition to a large menu of managed
services SAP delivers by default, and other optional services SAP can deliver for a fee. The services
covered by default and optional services are described in the documentation for the specific
software solution on the SAP S/4HANA Cloud Documentation site. Customers can bring their own
(already licensed) SAP applications into HEC or purchase a new solution and host it there. HEC
managed services include backups, patching, provisioning and upgrades, restore and recovery, and
infrastructure monitoring and event detection in a private cloud environment. Customers can also
choose where HEC is installed - an SAP data center or a data center of one of our hyperscaler
partners including Microsoft Azure, Google Cloud, Amazon Web Services, and others. See the full list
of hyperscaler providers here.

Identifying Governance Responsibilities in Cloud Deployment Models and Computing Services

Governance in Cloud Deployment Models and

Computing Services
Deployment Models and Operational Responsibility

The customer IT operations requirements vary by deployment model. Here are some
general scenarios:

• For an on-premise solution, the IT team is responsible for the entire solution and
needs to learn about the technical and functional specifications of maintaining all
aspects of the software and infrastructure.
• For a solution hosted in a private cloud, the IT team is responsible for monitoring
application performance, troubleshooting, and all application support activities.
Always refer to your service level agreement (SLA) and roles & responsibilities
documentation to see exactly who is responsible for which activities. For any
customer-specific enhancements built into the solution, the IT team is responsible for
maintaining them through future release upgrades, which includes re-testing
customized processes to verify the enhancements weren't affected.
• For a public cloud solution, the IT team is responsible for troubleshooting and trying
to resolve general application support issues and escalating actual technical
problems to the cloud provider. They are also responsible for maintaining any
customer-specific enhancements through future release upgrades. This includes re-
testing existing business processes after an upgrade is installed by the cloud
provider to ensure the upgrade didn't affect any of their customer-specific
enhancements.
• When application support is handled by a third party, knowledge about the solution
must be transferred from the project team to the third party. Business process
owners, business relationship managers, and service desk agents within your
organization still need to learn about the solution, and you should also consider
changes in your incident or change management support processes.
 Note

• Cloud solutions have service level agreements (SLAs) that define the system
availability, services, planned downtime, and other information related to the cloud
subscription. Information regarding SLAs can be found in the SAP Trust Center.
• If a customer is implementing a cloud solution for the first time, the IT team needs to
be trained in the new tools they should use to monitor and maintain the cloud
landscape, and when to communicate with the cloud provider for any activities
outside their scope.

Knowledge quiz
It’s time to put what you’ve learned to the test, get 6 questions right to pass this unit.
Q1.

Which of the following solutions has the lowest total cost of ownership (TCO)?

SAP S/4HANA Cloud Public Edition

SAP S/4HANA Cloud Private Edition

SAP S/4HANA (on premise)

Correct

That's correct!
Q2.

Which of the following SAP solutions are IaaS (Infrastructure as a Service)?

SAP Concur

SAP Ariba

SAP Signavio

SAP HANA Enterprise Cloud

Correct

That's correct!

Q3.

In the cloud model, which of the following are responsibilities of the service provider?

User access to applications

Data center security

Maintaining customizations after release upgrades

Software backups

Maintenance of physical servers

Correct

That's correct!

Q4.

For a solution hosted in a private cloud, which of the following are managed by the service
provider?

Applications

Business processes

Storage

Servers

Correct

That's correct!

Q5.

Which of the following solutions has a subscription-based license?

SAP S/4HANA (on premise)

SAP S/4HANA Cloud Private Edition

SAP S/4HANA Cloud Public Edition

Correct

That's correct!
 Q6.

Which of the following SAP solutions are SaaS (Software as a Service)?

SAP Business Technology Platform

SAP S/4HANA Cloud

SAP SuccessFactors

SAP HANA Enterprise Cloud

Correct

That's correct!

Q7.

Which of the following SAP solutions are PaaS (Platform as a Service)?

SAP Business Technology Platform

SAP Customer Experience

SAP S/4HANA Cloud

SAP HANA Enterprise Cloud

Correct

That's correct!

Unit 2

Navigating SAP's Cloud ERP Portfolio

SAP's Cloud ERP Portfolio

At the center of SAP's cloud portfolio is the SAP S/4HANA Cloud ERP core.
Because we are talking about SAP's portfolio of cloud solutions, we're referring
to SAP S/4HANA Cloud Public Edition or SAP S/4HANA Cloud Private Edition.

The Cloud ERP is supported by the SAP Business Technology Platform (BTP),
which provides a foundation where the integrations and extensions that enable
customers to differentiate their businesses live. Some services that run on SAP BTP
are already included in the GROW and RISE with SAP enablement packages that
accompany the SAP S/4HANA Cloud software. Customers can tap into the huge
library of free integration packages and extension templates available on the SAP
Business Accelerator Hub, and only need to pay for the service that's necessary to
run the integration or extension on SAP BTP. All services are listed in the SAP
Discovery Center.

For example:

• If a customer wants to automate the process of creating and approving business

partners in their SAP S/4HANA Cloud (public or private) system, a developer can find
and consume the Business Partner Creation Approval Process template that runs
on SAP Build Process Automation. Because the customer organization already
received several user licenses to SAP Build Process Automation in their GROW or
RISE with SAP enablement package accompanying the SAP S/4HANA Cloud
software, there is no additional cost for the customer.
• If a customer is using an SAP-certified 3rd party industry cloud solution to protect
their brand identity and products from being counterfeited (e.g. [Link]
Brand Protection), they also likely want to consume data generated from that
application back into SAP S/4HANA Cloud for reporting and analytical purposes. To
address this requirement, a developer from the customer organization can use the
integration package, Data Ingestion for Industry Cloud Solutions Integration with SAP
S/4HANA. There is no cost to use the package, but there is a cost for the industry
solution app, and if the customer doesn't already have a license for the SAP
Integration Suite, there will be an additional cost to subscribe to the service to run the
integration package.
The Cloud ERP and SAP Business Technology Platform are surrounded by Line of
Business (LoB) and industry-leading business applications that collectively provide a
full suite of modular business solutions that only SAP can offer. All these
components come together to provide customers the end-to-end, industry-specific
business processes they need to run intelligent, sustainable enterprises.

The documentation of business processes within each LoB is located in SAP

Signavio Process Navigator → Solution Scenario tile → filter by category: Enterprise
Resource Planning.

Industry cloud solutions from SAP and our partner ecosystem are in the SAP Store.

In the areas of Human Capital Management (HCM), Spend Management & Business
Network, and Customer Relationship Management (CRM), customers may need
additional capabilities beyond what's offered in the SAP S/4HANA Cloud ERP.

For example:

• Customers can create users and manage permissions within SAP S/4HANA Cloud,
but it's really designed to be integrated with an HR system of record to populate
people data through an integration. We recommend the SAP SuccessFactors suite of
HCM solutions, or if you only need core HR, just the Employee Central solution
(within SAP SuccessFactors).
• Customers can create projects for their own customer-facing engagements (i.e.
consulting), maintain the staffing, billing, and run a margin analysis and other
analytical reports using the processes in the Professional Services LoB within SAP
S/4HANA Cloud Public Edition. However, consultants travelling for these
engagements cannot book flights, hotels, rental cars, or submit expense reports
directly in SAP S/4HANA Cloud. We recommend SAP Concur for travel and expense
management.
o Please note, the Professional Services LoB is unique to the public cloud.
Because this LoB doesn't exist for the private cloud, we recommend
the Customer Experience (CX) suite of CRM solutions to handle the entire
lifecycle of gaining and maintaining relationships with your customers.

Core End-to-End Business Processes

There are four core end-to-end business processes, which each include many sub-
processes performed in different line of business (LoB) areas.
Recruit to Retire is one of the critical business scenarios needed by every customer,
regardless of country, industry, or size. A company's workforce provides the human
energy to achieve their objectives. Employees need to be hired, trained correctly,
assigned to the tasks relevant for their job role, kept healthy, and paid an appropriate
salary based on their job task difficulty, years of experience, and performance. SAP
provides the ability to understand, manage, and optimize all aspects of workforce
(employees and external workers) in line with business objectives, and with a clear
financial impact. The Human Resources LoB for both SAP S/4HANA Cloud
deployments is focused on time recording and setting up an integration with the
customer's HR system of record to populate employee data through an integration.

Lead to Cash provides an end-to-end scenario that manages all aspects of the
customer experience, from the initial interaction in the Sales LoB, to order fulfillment
and service delivery with the Service LoB and/or Professional Services LoB (public
cloud only), with opportunities to drive and realize revenue along the journey. The
processes can be adapted or extended based on a customer's specific requirements
and may may vary depending on the industry type, the type of customers, and the
sales channel(s) used (e-commerce or direct sales).

Source to Pay focuses on maximizing the impact and potential of the end-to-end
sourcing and procurement processes in the Sourcing & Procurement LoB by
leveraging core data, predictive analytics, and machine learning to ensure the right
suppliers are chosen for direct materials, indirect materials, and services. Buyers can
create connections with millions of suppliers, and suppliers can create profitable
connections with buyers to efficiently manage their sales cycle and cash flow.
Business processes exist in both SAP S/4HANA Cloud and SAP Ariba to provide
end users with a seamless sourcing and procurement experience.

Plan to Fulfill is a group of end-to-end business processes that enables companies

to manage a resilient, sustainable digital supply chain encompassing all business
processes related to planning, manufacturing, and delivering their products. Through
business processes in the R&D Engineering, Manufacturing, Supply Chain,
and Asset Management LoBs, customers experience a responsive and customer-
centric supply chain that are the backbone of a resilient business. Discrete
manufacturing can be used to produce tangible products through assembly (e.g.
Cars), or process manufacturing can be used to combine ingredients in a mixture to
create the final good (e.g. Pharmaceuticals).

Artificial Intelligence in SAP Solutions

Artificial Intelligence adoption continues growing

The ability to think and learn in humans is called natural intelligence, therefore in
machines, we call it artificial intelligence (AI). There are two primary types of
AI: traditional and generative. Traditional AI can recognize patterns, but generative
AI creates new patterns based on the recognized historical patterns and any
additional data that's provided. Machine learning is a subset of AI, focused on
teaching computers to learn from data and improve with experience, instead of being
explicitly programmed to do so. In machine learning, algorithms are trained to find
patterns and correlations in large data sets, and to make the best decisions and
predictions based on these analyses. Machine learning applications improve with
use and become more accurate the more data they have access to.

The adoption of AI and machine learning continues to accelerate in the business

world. McKinsey's State of AI in 2023 global survey found generative AI (gen AI) to
have "explosive growth" less than a year after the technology debuted. One third of
survey respondents said their organizations are using gen AI regularly in at least one
business function, which means 60% of organizations already using AI have used
gen AI. What's more, 40% of respondents said their organizations are planning to
increase their investments in AI overall because of the gen AI advances. McKinsey
predicts that gen AI could add $2.6-$4.4 trillion incremental value annually to the
global economy. They also explain AI and gen AI are most commonly used in the
business areas of marketing and sales, product and service development, and
service operations.

What experts are saying about SAP & Artificial Intelligence

Watch a video

Watch this video to get an overview of SAP Business AI.

SAP Business AI is embedded across the portfolio

SAP Business AI is a product that embeds artificial intelligence (AI) across SAP's
entire portfolio of solutions. We also provide business process-specific AI
services that our customers can adapt to their own workflows; for example, business
document processing, data attribute recommendations, and Robotic Process
Automation templates.

Data is the core of what makes business AI valuable, and SAP provides both the
foundation (SAP Business Technology Platform) and services (SAP Datasphere,
Analytics Cloud, Integration Suite) that make it possible to easily connect and model
data across different applications. SAP also has strategic partnerships with other
leaders in the industry where we embed their technology into our products (Microsoft
Teams, Google Workspace, and others), or we enable customers to build custom
machine learning models on SAP data in a secure platform.

At the end of the day, we want our customers to have a comprehensive cloud ERP
that enables them to optimize and automate processes, and gain insights through
data so they can make the most informed decisions possible for their businesses.
Learn more about SAP Business AI here.

Examples of SAP Business AI in real customer lives

Let's take a look at some examples of SAP Business AI in the lives of real
customers.

GoodYear example:

GoodYear Proactive Solutions offers advanced telematics and real-time monitoring

of tires to help fleet managers improve vehicle performance and safety, in addition to
reducing the total cost of ownership (TCO). Their customer base was growing and
they were having difficulty responding to the increased volume of inquiries.
GoodYear needed a solution to streamline the handover of inquiries between
different teams that provided monitoring and tracking of issues and their resolutions.
They purchased SAP Service Cloud and SAP Business AI to anticipate, automate,
and personalize every customer interaction across commerce, sales, service and
marketing. GoodYear Proactive Solutions increased the transparency of issue
management with progress dashboards for key requirements in service-level
agreements and saw a 10% faster resolution of service tickets. They found their
agents were better-informed by having a 360-degree view of customer and ticket
history and access to documentation and instructions, which resulted in more
efficient inquiry handling across multiple communication channels and overall faster
ticket resolution.

Aspen Pumps example:

Aspen Pumps is one of the leading suppliers in the installation and maintenance of
air conditioning systems. They had many repetitive administrative tasks that took
a huge amount of time for employees to complete to the point that employees'
unplanned time off caused disruptions in the day-to-day operations of the business.
Aspen Pumps needed a solution to streamline their administrative
processes and reduce the workload on their employees. They purchased SAP
Business by Design and SAP Build Process Automation (previously, SAP Intelligent
Robotic Process Automation) with SAP Business AI to streamline and automate
processes and improve employee experiences. Aspen Pumps easily identified the
repetitive processes that could be automated, including entering and approving
invoices, and set up bots to automate the processes. As a result, 2,200 documents
are processed automatically every month, which saves up to 350 monthly employee
hours that are now used for higher-value tasks. Employee time off no longer affects
the business, and their employees are happier with the new streamlined,
straightforward processes.

ZF Friedrichshafen example:

ZF Friedrichshafen supplies systems for passenger cars, commercial vehicles, and

industrial technology that keeps the automotive industry innovative and focused on
the future. However, their existing solutions did not provide a unified system for them
to understand actual demand and plan accordingly. ZF needed a demand planning
solution that had intelligence to support predictive planning and forecasting. They
purchased SAP Integrated Business Planning (IBP) and SAP Supply Chain Control
Tower with SAP Business AI to predict customer demand reliably with AI-powered
demand forecasting, improve quality with intelligent anomaly detection, and
streamline operations with predictive maintenance. ZF connected SAP IBP with their
ZF Aftermarket ERP systems to create one environment for demand planning. They
now have an accurate and unified view of demand and with the AI-powered
insights, gained a massive 92% increase in forecasting speed. The forecasting data
has informed their marketing activities that drive additional customer demand on
social media.

Accenture example:

Accenture is a global professional services company that delivers consulting

services to more than 7,000 customers in 120 countries. They issue more than half a
million client-facing invoices each year from 200 locations globally, and were
struggling with their existing system not matching incoming payments to
the corresponding invoices and client accounts accurately. To resolve the low
matching rate, Accenture had an extremely high volume of manually-intensive
tasks (~250,000 annual manual entries) to correctly match
payments with invoices and client accounts. When client invoices hadn't cleared yet,
their collections team would incorrectly call clients asking for payment, when most of
the clients had already paid in full. Accenture needed a cash application with
automated clearing and machine learning-generated proposals to reduce manual
processing. They purchased SAP S/4HANA and SAP Cash Application, which runs
on the SAP Business Technology Platform to automate and increase the rate of
invoice matching and reduce losses with anomaly detection. Accenture found a
significant increase in automatic matching with 54% of invoices matched with
payments automatically, which in turn reduced the open accounts receivable
balances and reduced the time needed for processing during peak times (month-
end, quarter-end, and year-end closing).

Generative AI Digital Assistant

Joule is described as the next-generation digital assistant "copilot", that

uses generative artificial intelligence (AI) and replaces the previous digital assistant,
SAP Conversational AI. With the old conversational AI, users would input information
when having a conversation via typing or speaking, and the digital assistant would
use the interaction to create responses. With generative AI, Joule uses data about a
user's past historical patterns in addition to their new inputs to generate fresh
content, information, and recommendations.

Joule is currently being embedded in the backend of all SAP applications with a
phased approach. Because it will live in the backend of each solution, Joule has
access to a huge volume of data it can use to provide holistic support and feedback
to end users. An employee can simply ask a question or frame an issue in plain
language and receive answers that take into account data across the entire portfolio
of SAP solutions the customer uses. For example, a Sales Manager could ask Joule
for help understanding their past sales performance with a specific product, or for all
products. Joule can identify underperforming regions, link to other data sets that
reveal a supply chain issue, and automatically connect to the supply chain system to
offer potential fixes for the manager's review. New scenarios will continue to be
released over time. Joule is also compliant with all SAP product standards,
certifications, AI ethics, and GDPR (General Data Protection Regulation in the
European Union).

Joule can be accessed from the diamond icon in the top right corner of any solution
where it's available. Joule can run in any of the SAP Business Technology Platform
(BTP) environments, and requires some initial set-up that needs to be completed
during implementation. Because the service runs in SAP BTP, a customer needs to
first subscribe to the service, then set up authentication between SAP Cloud Identity,
SAP BTP, and the target system (for example, SAP S/4HANA Cloud, SAP
SuccessFactors). Detailed information about setting up and enabling Joule is in
the SAP Help Portal here

Sustainability in SAP Solutions

Sustainability is more relevant than ever

How much could an organization's lack of sustainable practices cost their business?
It turns out, quite a lot. We'll look at some data from customers, investors,
employees, and regulators to get a better perspective.

Customers and Sustainability

A report from the Capgemini Research Institute found 79% of consumers are
changing their purchase preferences based on social responsibility, inclusiveness, or
environmental impact, and the COVID-19 pandemic especially increased consumers'
awareness of the scarcity of natural resources. More than half (52%) of consumers
surveyed said they share an emotional connection with products or organizations
they perceive to be sustainable. In addition, 77% of organizations surveyed in the
consumer, product, and retail space reported that sustainability leads to increases in
customer loyalty, and 63% reported it increased their brand revenue.

Investors and Sustainability

An report from Deloitte found investors have been adding "sustainable" or "socially
responsible" investments to their portfolios at a rapid pace. With artificial intelligence
and better-quality environmental, social, and governance (ESG) data becoming
available to evaluate the sustainability of organizations, the Deloitte Center for
Financial Services demand from clients to drive ESG-driven assets to account for
half or all professionally managed investments by 2025.

Employees and Sustainability

An analysis from Future Business found 71% of job seekers want to work for an
environmentally-friendly employer, with 67% being more interested in applying for
positions in sustainable companies. One third of those surveyed even said they
would accept a lower salary to work for sustainable or socially responsible
organizations.
Regulators and Sustainability
A review of events from the 2022 calendar year by EY highlighted several different
ESG reporting standards being proposed or adopted globally, and the tight
relationship between the finance line of business and ESG reporting, with some
organizations even creating a dedicated "ESG Controller" role. A few major events
are:

• The International Financial Reporting Standards (IFRS) Foundation announced the

establishment of the International Sustainability Standards Board (ISSB) at the 2021
United Nations Climate Change Conference in Glasgow. Research by EY estimates
there are 600+ ESG reporting standards globally, and the ISSB intends to develop
global sustainability reporting standards that require organizations to provide reliable,
consistent, and comparable metrics.
• In March 2022, the Securities and Exchange Commission (SEC) in the U.S.
proposed new rules to enhance and standardize disclosures that registrants make
about climate-related risks, their climate-related targets and goals, greenhouse gas
emissions, and how the board of directors and management intend to address these
risks moving forward.
• In October 2022, the European Union adopted the Corporate Sustainability Reporting
Directive (CSRD) to support the European Green Deal, which is intended to
transform the EU into a modern, resource-efficient, and competitive economy with no
net greenhouse gas emissions by 2050. Companies that operate in EU-regulated
markets are expected to start reporting beginning in 2024 in line with the mandatory
EU sustainability reporting standards.

Make Sustainability Core to Your Business

SAP has embedded sustainability insights into our end-to-end business processes to
make it possible for customers to make sustainability core to their business, in
addition to providing the dedicated solution, SAP Cloud for Sustainable Enterprises,
with applications designed to help customers reduce their emissions, create zero
waste, and stay socially responsible.

The SAP Cloud for Sustainable Enterprises solution supports

customers in regulatory compliance, real-time insights, and sustainable future
growth. Customers can proactively ensure they are compliant with global and local
regulations, taxation, and sanctions through the deep transparency into financial and
non-financial data.

The real-time data across the entire solution can be used to assess your actual
carbon footprint and learn where to improve. For example, designing a circular
business model where waste is reduced and/or reused as much as possible, with the
ultimate goal of creating zero waste. If zero waste isn't possible for a particular use
case, customers can support a local facility that burns approved materials to create
renewable energy, rather than burying the waste in a landfill that produces carbon
dioxide and methane as it decomposes. In addition, all materials involved in the
production of semifinished and finished goods should be grown and/or gathered in a
responsible way, with the employees working with these materials at every step in
the process being paid a fair, livable wage in safe work conditions.

Often, the people involved in growing and gathering raw materials can be
overlooked, and native plants or trees are removed in favor of growing materials that
can be sold for profit. With detailed and descriptive data about each step of the
production process, businesses can make thoughtful, informed decisions that have a
real impact at a human and environmental level, while even identifying new
sustainable products, services, and solutions they wouldn't have originally thought of.

Watch a video

Watch this video to get an overview of the SAP Cloud for Sustainable Enterprises
solution.

SAP Cloud for Sustainable Enterprises Solutions

SAP Cloud for Sustainable Enterprises includes a suite of solutions to help

customers manage their carbon footprint, reduce materials waste, and become a
socially responsible business.

This includes:

• Sustainability and ESG (environment, social, governance) Reporting Solutions

o SAP Sustainability Control Tower enables customers to define their own
organization-specific targets and track performance with a set of data
 management and performance insight tools targeted to helping businesses
understand their environmental, social, and governance (ESG) data.
• Climate Action Solutions
o SAP Sustainability Footprint Management and SAP Environment, Health, and
Safety Management enable customers to reduce the carbon footprint of their
entire value chain based on actual business transactions.
• Circular Economy Solutions
o SAP Responsible Design and Production and SAP Green Token enable
customers to build a circular supply chain where the business finds ways to
reuse its own outputs to create as little waste as possible.
• Social Responsibility Solutions
o SAP Environment, Health, and Safety Management and SAP S/4HANA for
product compliance enable customers to understand the impact of their
business on people and society in a larger context.

Note

Learn more about SAP's sustainability solutions here.

Knowledge quiz
It’s time to put what you’ve learned to the test, get 3 questions right to pass this unit.
Q1.
What is SAP's generative AI digital assistant?

SAP Joule
B
SAP CoPilot
C
SAP Conversational AI
D
SAP Business AI

Correct
That's correct!
Q2.
Which sustainability solutions are designed to help organizations build a circular supply
chain?
A
SAP Sustainability Footprint Management

SAP Responsible Design and Production

C
SAP Sustainability Control Tower

SAP Green Token

Correct
That's correct!
Q3.
What provides a foundation for the Cloud ERP where integrations and extensions live?

SAP Business Technology Platform

B
Partner Ecosystem Solutions
C
SAP Discovery Center
D
SAP Business Accelerator Hub

Correct
That's correct!
Q4.
Which sustainability solution helps businesses understand their environmental, social, and
governance (ESG) data?
A
SAP Responsible Design and Production
B
SAP S/4HANA for product compliance

SAP Sustainability Control Tower

D
SAP Environment, Health, and Safety Management

Correct
That's correct!

SAP S/4HANA Overview

What is SAP S/4HANA?

SAP S/4HANA is an acronym for the SAP Business Suite 4 the HANA Database. We
call it the "next generation" of SAP business suite software because it replaces the
previous version of SAP's business suite, SAP ECC (SAP Enterprise Central
Component), the same way a new Android or Apple mobile device replaces the
previous device versions.

SAP S/4HANA is the digital core of an organization, meaning it is the financial

system of record with the universal journal being the single source of truth. The
software is inherently designed with analytics, including predictive and forecasting
capabilities, always in-mind. Data is collected from transactions and fed into
analytical applications that provide information to help customers make the right
decisions across all lines of business.

SAP S/4HANA can be easily integrated with other SAP and third party
applications through the SAP Business Technology Platform. It also has
an extensibility framework where non-developers can easily make customizations
and enhancements through apps that guide you through the process of building
extensions that will be stable through future release upgrades.
The SAP Business Suite software is built on the SAP HANA database, and the user
experience is enhanced with the SAP Fiori user interface to provide a consistent and
intuitive user experience, both in desktop and mobile apps. Core Data Services is an
analytical layer that sits on top of the SAP HANA database to facilitate the retrieval
and modeling of data in the analytical SAP Fiori apps.

The SAP Fiori Launchpad is the central entry point to SAP S/4HANA for all users on
mobile and desktop devices. The launchpad is an employee's personal home page
where they can see and launch the applications permissioned for their assigned
role(s). SAP Fiori is the design language that creates a consistent look and feel
across all apps, regardless of whether the app lives within SAP S/4HANA (for
example, the Manage My Timesheet app), or opens a new browser tab to launch an
integrated SAP or third-party solution (for example, the Concur Travel Expense app).
Hundreds of SAP Fiori apps are available across different lines of business and
industries, covering a wide range of transactional and analytical tasks. In the SAP
Fiori Launchpad, users can access embedded support, including guided simulations
that align with business processes, video tutorials, and help information that's in-
context of the app you're currently working in. Users can also make personalizations
to make their view of the launchpad fit their needs best.

Core Data Services (CDS) is a common set of domain-specific languages and

services for defining and consuming semantically rich data models. In other words,
the CDS layer provides a universal language to read and process data across
different applications. You can create CDS views to model data from the database
for analytical purposes, or to generate application programming interfaces (APIs) to
allow other applications to consume the data. In general, CDS views are intended to
be consumed by a user interface (UI), analytical applications, or other solutions.

The SAP HANA database is an in-memory, column-oriented database designed to

store, receive, and query data. The in-memory computing engine enables SAP
HANA to process data stored in RAM (Random-access memory; also called "main
memory") as opposed to reading it from a physical disk drive. Think of RAM storage
as your own short-term memory and disk storage as your long-term memory. If you
are asked to recall something you just learned 10 seconds ago, the information is
still in your short-term memory and is easily accessible. If you are asked to recall
something you learned 10 years ago, it's going to take much longer to sift through all
of that data and identify the correct information. For databases, storing data in main
memory instead of disk provides faster data access and, by extension, faster
querying and processing.

The structure of the SAP HANA database tables are column-oriented, meaning all
data for a single column is stored in the same location. This is opposed to row-
oriented databases that store all data for a single row in the same location. Think of
a spreadsheet in Microsoft Excel with user data - the columns are headers that
define a certain type of data to be stored in each column (first name, last name,
phone number, address), where each row is an entire user record with details about
one individual person. When running a query, a row-oriented database selects each
record (row) of information that has something relevant to the query, then discards
the data that's not relevant. A column-oriented database applies a filter to the
column(s) relevant for the query and selects only the necessary data that is
requested. Because column-oriented databases only search for the data in a query,
instead of casting a wide net and discarding information they don't need, they are
much faster and more precise. In-memory, column-oriented databases are designed
to handle large volumes of data, which is necessary to feed analytical applications
that generate predictive analyses and to train AI chatbots or other types
of technology that learn through exposure to data (for example, Machine Learning).

How can SAP S/4HANA be deployed?

SAP S/4HANA can be deployed in a public cloud, private cloud, or on premise to fit
customer needs.

With SAP S/4HANA Cloud Public Edition, customers can see results right away with
ready-to-work business processes built on proven industry best practices.
Companies can stay ahead by getting the latest business processes and technology
innovations with semi-annual release upgrades in August and February, which are
automatically installed in your system by SAP on the dates defined in the release
schedule. The fully extensible platform enables companies to customize business
processes to their needs and easily expand as business requirements evolve with
the cloud architecture.

With SAP S/4HANA Cloud Private Edition, customers can move to the cloud at their
own pace. A comprehensive library of ready-to-run business processes make it easy
to start with a baseline, while the customization flexibility enables companies to build
highly tailored business processes that support industry requirements. SAP releases
annual upgrades to enable customers to stay current with the latest innovations,
while providing flexibility for customers to roll out innovations on their own time line.

SAP S/4HANA (on premise) and SAP S/4HANA Cloud Private Edition have the
same functional scope, including the end-to-end line of business processes, support
for all 25 industries and annual upgrades. The primary difference between the two is
the license (perpetual or subscription), and where the infrastructure lives (on-site or
in a remote data center). In addition, there is no requirement for SAP S/4HANA
customers to install upgrades when they have purchased the on premise
deployment. With private edition, customers are required to stay within mainstream
maintenance, which requires at least 1 upgrade every 5 years.

2-Tier ERP Deployment Models

Implementation Methods

The decision of which deployment option to select often depends on the degree of
standardization versus the degree of flexibility required by a customer in their
enterprise software, and the implementation method. The different implementation
methods are:

• New Implementation / Greenfield: New Implementation with a clean system.

• System Conversion / Brownfield: System Conversion from your existing SAP
ERP system.
• Selective Data Transition: Typically combines greenfield and brownfield, often
in a two-tier ERP scenario. For example, the SAP ECC system is converted to
SAP S/4HANA Cloud Private Edition, and SAP S/4HANA Cloud Public Edition
is deployed for a specific line of business, such as Professional Services. This
allows standardization in the core ERP, with a fast-moving and frequently
updated public cloud solution for a specific LoB.

Two-Tier ERP Deployment

An enterprise resource planning (ERP) system needs to be both agile and reliable,
so an organization can quickly respond to evolving business conditions, while also
maintaining a sustainable environment that serves stakeholders and business users.
A two-tier ERP strategy is when a company uses different ERP systems (either from
the same vendor or different vendors) at different layers of the organization.

There are several possible two-tier ERP scenarios, but a common model is
where Tier 1 serves as the global backbone running administrative ERP
processes (e.g. finance) and Tier 2 is tailored for localized business needs, a
subsidiary, or a smaller business unit. This allows an organization to standardize on
Tier 1 to meet functional and budgetary requirements, while maintaining flexibility
with the business functions in Tier 2.

With SAP S/4HANA Cloud Public Edition, an organization can quickly deploy the
public cloud for a subsidiary, while keeping the total cost of ownership low. This
approach offers agility to the subsidiary, while the tight integration with SAP
S/4HANA (on premise) or SAP S/4HANA Cloud Private Edition deployed for the
headquarters will ensure a high degree of visibility into the data and operations of the
subsidiary.

Other market drivers to adopt a two-tier ERP may include:

• Onboard new acquisitions quickly

• Standardize subsidiaries on a harmonized platform
• Prepare for an anticipated divestiture
• Adapt to new processes or entirely new business models
• Centralize services like finance or procurement
• Extend the supply chain control with business partners
• Expand through joint ventures
• Adapt to evolving geo-political situations
• Prepare for changing data residency regulations

Two-tier ERP Scenario Examples

In the Headquarter and Subsidiary scenario, the headquarters runs a highly
customizable on premise or private cloud ERP and subsidiar(ies) run a standardized
public cloud ERP with a specific scope. There is seamless integration between the
headquarters and subsidiaries, which allows the subsidiaries to maintain flexibility,
focus on innovation, and onboard quickly.

In the Central Services scenario, an organization could have a line of business spin-
off running a standardized public cloud ERP. For example, finance would be a
separate legal entity and run in the public cloud as "Shared Services", with the rest
of the business running on a highly customizable on premise or private cloud ERP.
This enables a large organization with many different lines of business to keep up a
fast pace of innovation. The structure also makes it easier to introduce new
innovations into the business without interfering with the highly customized on
premise or private cloud system.

In the Supply Chain Ecosystem scenario, the headquarters runs a highly

customizable on premise or private cloud ERP system and brings their
subcontractors or dealers on a standardized public cloud system. Integrating an
organization with their vendors, dealers, and subcontractors forms an entire supply
chain network. With this model, there is high visibility and transparency across the
supply chain, and implementing process automation results in a reduction of manual
interventions.

Building an effective two-tier ERP strategy is about more than just integration
scenarios. It is critical to conduct a thorough analysis of the functionality necessary
for each subsidiary or satellite, and the strategy must define how the
interdependence of the organizations will affect reporting, in addition to business
processes. For example, the reporting strategy for intercompany transactions and
company-wide reporting should be defined up front. In addition, master data
management will follow integrated process requirements, and therefore should also
be planned for early in an implementation project. Last, change enablement is multi-
dimensional, because there are new systems that require sufficient end-user
training, and potenctial changes to business processes with the interdependence
between organizational entities.
GROW with SAP and RISE with SAP
Cloud ERP Product Family

Organizations across different industries have unique needs with some common
requirements. All customers expect a high degree of security, must comply with local
and government regulations, have a need to manage integrated landscapes with
ever-increasing complexity, and require tools that support customizing a solution to
their needs. In today's environment, a one-size fits-all solution is simply not feasible.
SAP has taken a different approach by assembling a modular cloud portfolio of many
different solutions that can be plugged into a single-source of truth. Customers can
deploy specific modules or processes in phases over time to build a Cloud ERP that
truly adapts and evolves with their organization.

For 50 years, SAP has been working hand in hand with customers across every
industry and using this expertise to benchmark and define best-in-class, industry-
specific business processes. We have two distinct products that can be deployed as
the Cloud ERP core of the organization: SAP S/4HANA Cloud Public
Edition and SAP S/4HANA Cloud Private Edition. The enablement packages that
accompany the software solutions are GROW with SAP and RISE with SAP,
respectively.

For customers who desire standardized processes that are always on the latest
release and prefer their cloud provider to manage their infrastructure, SAP S/4HANA
Cloud Public Edition is the cloud-native ERP that delivers the latest industry best
practices and continuous innovation.

For customers who require a high degree of customization in their processes, prefer
to innovate at their own pace, and require more control over their solution, SAP
S/4HANA Cloud Private Edition is the tailored-to-fit cloud ERP that adapts to an
organization's unique transformation.

It's not just about the products - we also have to think about how to enable
customers on their journeys to the cloud. For small and midsize customers looking
for a solution they can immediately adopt, GROW with SAP is the enablement
package accompanying the SAP S/4HANA Cloud Public Edition software to provide
additional tools to support the transition, accelerated adoption services, a global
community of experts, and free learning resources that can help customers go live in
as little as four weeks with a greenfield deployment.

For SAP's installed base customers migrating to the cloud, RISE with SAP is
the enablement package accompanying the SAP S/4HANA Cloud Private Edition
software in two different use cases. When SAP S/4HANA Cloud Private Edition is
implemented individually in a greenfield or brownfield scenario, and when it's
implemented in combination with SAP S/4HANA Cloud Public Edition for a two tier
ERP scenario. The combination of both the software and enablement package
provides customers with additional tools and resources to support the transition.

SAP Service Delivery Model

SAP delivers and manages the software, support, infrastructure, and technical
services under one Service Level Agreement (SLA). This includes maintaining the
software availability uptime defined in the SLA and technical system operations,
landscape deployment and upgrade installation, in addition to other tasks.

Partners deliver advisory, implementation, and application management

services to facilitate a seamless transition to the cloud for customers. This includes
guiding a customer through a greenfield, brownfield, or selective data transition by
configuring business processes, developing extensions, setting up integrations,
migrating data, and conducting business process tests. Other partners in the
application management arena support customers by planning and coordinating
release upgrade preparation and follow-up activities, and/or delivering continuous
application management operations as a third party support service on top of the
support SAP provides.

SAP S/4HANA Cloud Public Edition packages

The GROW with SAP packages have been designed to support the priorities
of customers who want to adopt cloud ERP with speed, predictability, and
continuous innovation. In addition to the core SAP S/4HANA Cloud Public Edition
software, customers receive a voucher for Cloud Platform Enterprise Agreement
(CPEA) credits that can be used to consume eligible services on the SAP Business
Technology Platform (SAP BTP), entitlements to SAP Build to create apps, automate
processes, and design business sites, and enhanced finance and intelligent spend
business network (ISBN) capabilities. The SAP BTP CPEA credits provided to each
customer vary, as they are based on the annual contract valuation (ACV) of each
unique contract.

The base package is targeted to smaller and midsize organizations at a lower price
point with complimentary licenses to SAP BTP, some finance entitlements, and
access to Ariba Buying, base edition to support sourcing & procurement activities.
The premium package is targeted to midsize and larger customers at a higher price
point with additional complimentary licenses to SAP BTP, more finance entitlements,
access to Ariba Buying, base edition, and SAP Analytics Cloud Planning to support
extended planning and analysis activities.

SAP S/4HANA Cloud Private Edition packages

The RISE with SAP packages have been streamlined and optimized to better
support customers migrating to the cloud with a tailored-to-fit cloud ERP that adapts
to their unique transformation. Customers have a choice between the Premium
edition and Premium Plus edition.

For both editions, customers receive a voucher for CPEA credits that can be used to
consume eligible services on SAP BTP, entitlements to SAP Build functionalities to
create apps, automate processes, and design business sites, and access to SAP
Signavio to support business process planning and improvements, in addition to the
core SAP S/4HANA Cloud Private Edition software. The Premium Plus edition adds
additional capabilities for generative AI, sustainability, and supplier networks. The
SAP BTP CPEA credits provided to each customer vary, as they are based on the
annual contract valuation (ACV) of each unique contract.

Components of the GROW and RISE with SAP

Packages
Business Process Optimization (private edition only)

SAP S/4HANA Cloud Private Edition customers often have a higher degree of
customization in their business processes, so SAP included SAP Signavio Process
Insights in both RISE with SAP packages to help organizations assess the speed
and efficiency of their existing processes. An organization can easily connect to their
SAP ERP applications to SAP Signavio Process Insights to identify focus areas
for improving processes in a targeted way with dynamic, real-time reports. Through
the integration with SAP Build Process Automation, an organization can start
improving their business processes with the recommended actions right away. In
addition, the business can compare and contrast the performance of their own
processes against a vault of over 300 different key performance indicators (KPIs)
derived from the aggregated data of thousands of SAP customers around the world.

Note

Request your own Process Insights Discovery Report here.

In addition, the RISE with SAP packages include entitlements for SAP Signavio
Process Manager and SAP Signavio Process Collaboration Hub. SAP Signavio
Process Manager is a professional process modeling solution to document, design,
and simulate business processes. SAP Signavio Process Collaboration Hub acts as
a single source of truth where employees across an organization can have a
transparent meeting point to combine their work and expertise to manage business
process content in a shared location.

Learn more about SAP Signavio business process transformation solutions here.

Extension, Integration, Automation: SAP Build

SAP Build is a low/no-code solution that enables non-developers (and developers) to

easily learn how to develop apps, design process automation workflows, and create
company web pages to share information. SAP includes licenses for this collection of
tools in the GROW and RISE enablement packages to make it as easy as possible
for customers to extend and customize their SAP S/4HANA Cloud software on a
separate platform to keep their core clean. Customizations built and hosted in a
separate platform are not affected by release upgrades applied to the SAP S/4HANA
software, which means customers don't have to worry about checking the stability of
every single extension they've made after a software upgrade is installed. SAP
Build runs on the SAP Business Technology Platform, and consists of SAP Build
Apps, SAP Build Process Automation, and SAP Build Work Zone.

SAP Build Apps is a professional application development solution designed for

anyone to create apps without code, regardless of role or skill level. The tool
provides a drag-and-drop development environment for building sophisticated
business apps that are easily integrated with your other SAP applications. SAP Build
Apps evolved from SAP AppGyver and other SAP technologies.

Learn more about SAP Build Apps here.

SAP Build Process Automation enables business users to automate workflow

processes and tasks without having to write any code. It combines workflow
management, robotic process automation (RPA), and embedded AI capabilities with
prebuilt process content to help business users adapt, improve, and innovate
business processes.

Learn more about SAP Build Process Automation here.

SAP Build Work Zone enables IT professionals and line of business experts to easily
build and design engaging business sites for their employees, partners, and
customers that provide centralized access to relevant applications, processes, and
information on both desktop and mobile devices. Formerly known as SAP
Launchpad service, SAP Build Work Zone unifies the SAP Launchpad service and
SAP Work Zone into a single low-code business site development solution.

Learn more about SAP Build Work Zone here.

Extension, Integration, Automation: SAP Mobile Start App

SAP Mobile Start is the native mobile app for employees to access their SAP apps,
processes, and business data on iOS and Android devices. End users can
easily download the app for free in the Apple App Store or Google Play Store, but
the app must be configured via SAP Build Work Zone by a partner configuration
expert or customer administrator for it to display relevant business data.

SAP Mobile Start helps employees stay up-to-date with the latest information that
requires their attention through notifications and widgets that can be easily
responded to with a simple "tap". Users can personalize their individual home page,
and organizations can add their own customization and branding with the extensible
framework. SAP Mobile Start also supports integration with different UI technologies
and third-party web apps.

If a customer has opted to purchase a license for SAP Task Center, which runs on
the SAP Business Technology Platform to unify workflow tasks across a variety of
different software applications, they can take advantage of the SAP Mobile Start
integration with SAP Task Center.

Note

• SAP Mobile Start replaces the previous mobile app, SAP Fiori Client. For customers
already using the SAP Fiori Client mobile app, learn about the transition in SAP Note
2992772.
 • Complete the free training course on SAP Learning to learn how to set up SAP Build
Work Zone and the SAP Mobile Start App.
• Find technical setup information in the SAP Help Portal.

Extension, Integration, Automation: Cloud Platform Enterprise Agreement

(CPEA) Credits

SAP wants to support customers in addressing their varying requirements for

integration and extension scenarios by providing a Cloud Platform Enterprise
Agreement (CPEA) credit voucher that can be applied to eligible services on SAP
Business Technology Platform (SAP BTP). Think of these credits like a prepaid debit
card, where you can add additional credits as-needed if you notice your credits are
getting low.

Customers can keep track of their credit consumption in SAP for Me anytime, and
receive a usage statement monthly. A benefit of purchasing additional CPEA credits
to consume SAP BTP services (rather than subscribing to a service individually) is
that customers can try different services without having to commit to a full license
period. If you change your mind, you can effectively "return" the service and get
those credits back to try something else.

Note

View all SAP BTP Services in the SAP Discovery Center.

For CPEA credits purchased in addition to the GROW or RISE with SAP voucher, a
customer makes a prepaid investment in cloud credits for the contract duration with
an annual commitment to consume SAP BTP services. This model is suitable for
customers that have well-established and planned use cases, and who want the
flexibility of switching between services.

The customer receives a monthly balance statement with information about the
usage consumption of each service and the corresponding costs, and the total
monthly cost is deducted from the cloud credits balance. Credits are billed annually
in advance and overages are billed in arrears at list price. However, customers can
always purchase credits to prevent overages ahead of time.

Advanced Financial Management

The advanced financial management entitlements were included in the GROW and
RISE with SAP enablement packages based on feedback from customers on what
they needed in addition to the Cloud ERP software. The entitlements vary by public
or private edition, and the package purchased.

The entitlements include:

• Group Reporting, which supports the end-to-end consolidation and corporate

reporting cycle, while ensuring the business meets regulatory requirements. It
accelerates the group financial close through seamless integration with entity-level
financial data, which eliminates reconciliation efforts, and drives user efficiency
through greater automation, central monitoring, and control.
• Group Reporting Data Collection, which supports customers in gathering financial
data for each business unit as part of the data preparation process for group
reporting.
• Advanced Financial Close, which is used to support the planning, execution,
monitoring and analysis of period-end closing tasks for all entities (i.e. typically the
headquarters & subsidiaries) of a corporation for a faster and more accurate financial
close.
• Digital Access, which offers a simplified model to license the indirect use of S/4HANA
Cloud by non-SAP software applications, based on the number of documents created
by those applications.
• Cash Management, which helps treasurers and cash managers simplify and
automate their daily cash operations. Please note, cash management doesn't include
SAP Multi-Bank Connectivity.
• Receivables Management, which enables the proactive assessment of customer
credit risk and streamlines cash collections. With integrated dispute management,
companies can proactively follow up on underpayments and disputes.
• Central Invoice Management, which is a unified invoice solution built on SAP
Business Technology Platform that enables customers to process invoices faster and
more accurately with a centralized view of all invoices from across your organization.

Intelligent Spend Business Network (ISBN)

Ariba Buying, base edition is an embedded feature included in both

the Base and Premium packages for SAP S/4HANA Cloud Public Edition, because it
supports the SAP Ariba Buying (4AI) business process. An employee using Ariba
Buying for sourcing and procurement will experience a guided process for finding
and ordering the items they need for work. For example, office supplies or laptops for
employees in the organization.

SAP Business Network Supplier Portal is included in the Premium Plus

package for SAP S/4HANA Cloud Private Edition to simplify business process
compliance through automation and improve supply chain management overall.
Businesses can automate compliance workflows, ensure they are adhering to
regulatory requirements and internal policies, and communicate through secure and
transparent channels with their suppliers.

Learn more about SAP Business Network here.

Data and Analytics

SAP Analytics Cloud Planning is designed to help businesses create strategic

alignment across all departments, crowdsource plans across the business,
and make confident decisions with SAP Analytics Cloud (SAC). While there are
embedded SAC features in SAP S/4HANA Cloud Public Edition, SAC Planning
would be accessed through a separate tenant in SAP Business Technology Platform
to provide the budgeting and forecasting, predictive planning, and collaborative
planning capabilities. Customers can use the tool to deliver timely plans, budgets,
forecasts, and reports with better accuracy, automate forecasts with predictive
analytics and machine learning, and simulate multiple plan outcomes to see the
impact of possible changes to their business.

Learn more about SAP Analytics Cloud Planning here.

SAP Datasphere is a comprehensive service that delivers access to mission-critical
business data beyond just the core ERP. It provides a semantically-rich data layer
that can read and consume data across a customer's entire integrated landscape.
This means customers can access and model their data across the landscape of
SAP and non-SAP sources, regardless of the application in which it lives, with
centralized governance, privacy, and compliance built-in. Harmonizing data from
many sources on different platforms isn't an easy task - it takes a powerful set of
tools to make the connections and pull the data into a central location with modeling
capabilities where it actually makes sense when viewed by the end user.

Learn more about SAP Datasphere here.

SAP Business AI is a product that combines artificial intelligence with the business
data and business processes already in the organization's ERP system, while
maintaining ethical and data privacy standards. The AI trains itself on the
organization's company and industry data to help customers identify where to
optimize, automate, and make better-informed decisions overall. For example, SAP
Joule is a digital assistant that can help end-users complete their daily tasks more
efficiently by suggesting which app to navigate to next, providing support when
asked, or displaying descriptive information about business objects the user is
currently working with.

Learn more about SAP Business AI here.

Sustainability (private edition only)

Both SAP Sustainability Control Tower and SAP Sustainability Footprint

Management are included in the Premium Plus edition of SAP S/4HANA Cloud
Private Edition to enable organizations to address two major components of
sustainability: Environmental, Social, and Governance (ESG) data, and carbon
footprint.
For ESG data, SAP Sustainability Control Tower enables organizations to gather
auditable and compliant data through automation and provides insights on where the
business can embed sustainability into their core processes.

For carbon footprint, SAP Sustainability Footprint Management enables customers to

get an accurate carbon footprint of their business as a whole and their products, with
insights into where they can decarbonize across the entire value chain.

Learn more about SAP's sustainability solutions here.

Acceleration Service: SAP Baseline Activation Service for SAP S/4HANA

Cloud Public Edition

The SAP Baseline Activation Service for SAP S/4HANA Cloud Public Edition is a
service that provides a pre-configured exploration environment within a short period
of time, personalized to the customer and enriched with the customer's own sample
data to help them visualize and consume the SAP Best Practice business processes.
Ideally, the environment could later become the customer's productive environment,
where they could expand on the foundation by deploying additional functionality in
future iterations.
The Baseline Activation Service is an ideal starting point for small and midsize
customers or subsidiaries of large organizations who need to get up and running on
SAP S/4HANA Cloud as quickly as possible. The predefined scope is a selection
of Finance-led Administrative ERP business processes, which are already used by
the majority of our customers. Finance-led Administrative ERP covers core
processes in the Finance, Sales, and Procurement lines of business with one
company and one legal entity. The scope is fixed and meant to be a foundation that
would be followed by implementation of additional scope in the future.

While we have to gather the customer's configuration data to define the business
processes, no customizations or extensions are included in the service - this is what
enables us to deliver a fully-functional system in 4-6 weeks. The activation,
configuration, and testing is completed in a public cloud 3-system landscape for
a nominal fee on top of the SAP S/4HANA Cloud Public Edition solution cost. The
setup procedure uses automation accelerators to simplify the onboarding process
from provisioning to go-live, and is fundamentally different than the standard
implementation process that follows the SAP Activate Methodology roadmap.

Note

Learn more in this SAP Blog: An Introduction to the Baseline Activation Service for
SAP S/4HANA Cloud.

Subscription Licensing
Digital Access in the past and present

In the past, software companies could predominantly license access to software

solutions based on direct human access, as humans were the primary users, and
solutions were contained within the company's on premise server(s). Today, it's
common to find organizations with a mixture of cloud and on premise solutions
targeting specific business areas that need to be integrated with each other, often
from different providers. Instead of humans being the primary software users, we find
other devices and technologies sending the highest volume of access requests.
Because of this shift, the licensing model needed to change accordingly.

We categorize accessing the digital core, meaning all deployments of SAP

S/4HANA, including SAP S/4HANA Cloud Public Edition and SAP S/4HANA Cloud
Private Edition, into three categories:

• Direct Human Access

• Digital Access / Indirect Human Access
• SAP Application Access
Direct Human Access

Direct human access refers to a human with a unique user ID logging into any
deployment of SAP S/4HANA directly and creating documents. The individual user
ID covers all activities in the digital core, and therefore will continue to be licensed on
the number of users. However, some humans access SAP S/4HANA indirectly
through a non-SAP intermediary software. This could include a non-SAP front-end, a
custom solution, or any other non-SAP application, and is considered indirect human
access. In the case of process automation, access to SAP S/4HANA with attended
third-party bots is considered direct human access when the bot is acting on behalf
of a human.

Digital Access / Indirect Human Access

The Digital Access license model combines indirect human access with nonhuman
devices, automation bots, automated systems, or other third party
solutions accessing SAP S/4HANA and creating documents. This is an outcome-
based license where humans or non-humans create a specific set of documents
through intermediary non-SAP software. Pricing is basecentracentratwo-tierd on
the number of documents associated to nine specific document types. It's important
to understand the document types themselves are not counted for digital access, it's
the creation of document items for these nine document types. The pricing model is
also tiered to make the software affordable for companies of all sizes. In the case of
process automation, access to SAP S/4HANA with unattended third-party bots
requires additional licensing through Digital Access.

SAP Application Access

SAP application access is when SAP S/4HANA is accessed through an SAP line of
business (LoB) application, an industry application, or SAP solution extensions
(Solex). You might think documents created through these applications would be
considered Digital Access, but they aren't because each application is licensed
separately, and therefore all documents created through them are covered within the
license of each individual application. To explain it differently, the applications are
not creating documents within SAP S/4HANA, they are creating documents within
the original LoB, industry, or Solex application and transferring the created
documents to SAP S/4HANA.

An alternate use case is if the application happens to already be included in the

license purchased for the core ERP software. For SAP S/4HANA Cloud (public and
private editions), SAP Build Process Automation is included in both the GROW and
RISE with SAP packages. Because of this, process automation bots within SAP
Build (attended or unattended) are considered SAP application access and do not
require additional licensing.

Document Types relevant for Digital Access License

The creation of some document items are weighted differently than others. Please
refer to the graphic to see how document items are weighted for the different
document types. Additional information can be found in the SAP Help Portal here.

Note

• Only creation of document items for the 9 document types are counted for the Digital
Access license. Viewing (read), updating (write), and deleting documents are not
counted. Document items created for document types outside the list of nine types
are not counted either.
• Only the total number of document items is counted for the license, regardless of
type.

Measuring & Reporting on Digital Access

Existing SAP ECC (Enterprise Central Component) and SAP S/4HANA customers
considering any deployment of SAP S/4HANA can take advantage of the Digital
Access Evaluation Service provided by SAP's Global License Audit and Compliance
(GLAC) team at NO COST. This service is designed to help customers determine
the estimated initial number of digital access documents.
Measuring digital access documents uses the SAP Passport technology, which is
already in place for end-to-end system tracing and monitoring in distributed system
landscapes. Please refer to the technical prerequisites for measurability and
the conversion options for existing licenses.

Customers who have implemented any deployment of SAP S/4HANA can keep track
of their ongoing digital access document consumption with two reporting tools:

• Use the License Compliance Digital Access app in SAP S/4HANA Cloud Public
Edition.
• Use the report RSUVM_DAC in SAP S/4HANA or SAP S/4HANA Cloud Private
Edition.

Note
Check which role is required for your business user to access an application on the Fiori
launchpad by looking up the relevant app in the SAP Fiori Apps Reference Library

Digital Discovery Assessment

Digital Discovery Assessment - Quick Qualification

The Digital Discovery Assessment (DDA) is used in the sales cycle to assess a
customer's requirements and match them with the best SAP S/4HANA Cloud
solution to fit their needs. This occurs in the Discover phase of the SAP Activate
Methodology implementation roadmaps for both SAP S/4HANA Cloud Public Edition
and SAP S/4HANA Cloud Private Edition. Typically, a Chief Information Officer
(CIO), Chief Technology Officer (CTO), or similar role from the prospective customer
organization works with a sales partner to complete the DDA. The process starts
with a Quick Qualification to capture high-level information about the customer,
including:

• Existing (installed-base) or net-new customer

 • Plan for moving to SAP S/4HANA: new implementation or system conversion (for
installed-based only)
• Countries in-scope
• Industry area
• Finance-led ERP or Operational ERP
• Is this a two-tier ERP scenario?
• Are the amount of FUEs (full user equivalents) below 60?

In some cases, the tool will not provide an automated recommendation and instead
the completed Detailed Discovery Assessment will be reviewed by SAP experts to
determine the best-fit recommendation for the customer. If a customer already has
SAP ERP software and requires a system conversion, the only suitable solution is
SAP S/4HANA Cloud Private Edition, as only this cloud solution allows a system
conversion.

Another key differentiator is whether the customer has a focus on finance-led ERP or
operational ERP processes. Finance-led ERP is when the customer intends to use
SAP S/4HANA Cloud as the commercial backbone of a company. This is often found
in service industries who need capabilities of accounting and financial close, revenue
management, operational procurement, receivables/invoice management, project
management, expense management, and time management.

Operational ERP covers all the finance-led ERP capabilities in addition

to functionality that covers operational value chain processes with a focus on
product/asset-centric industries. These additional capabilities can include enterprise
asset management, manufacturing engineering and execution, digital manufacturing,
quality management, product design and lifecycle management, production planning,
supplier management, transportation management, warehouse management, and
others.

A partner or SAP employee who has completed training through SAP Partner
Portal to get SELL or SERVICE authorization for SAP S/4HANA Cloud Public Edition
or SAP S/4HANA Cloud Private Edition can request access to the DDA here.

Digital Discovery Assessment - Detailed Discovery in New Implementations

For new implementations, the Detailed Discovery gathers information about
integrations with other SAP Cloud solutions the customer may already have or be
planning to purchase, their ERP business process requirements, localizations, and
total users expected in the system.

To make it easier for customers to select the right business processes across the
different lines of business, there are pre-selection packages for the following
scenarios:

• Baseline covers key end-to-end processes for a company in the areas of Sales,
Finance, and Procurement. Core processes include Invoice to Cash, Order to Fulfill,
Record to Report and Procure to Receipt. This is also the bundle of processes that
would be activated if a customer chooses to purchase the GROW with SAP optional
add-on service called Baseline Activation for SAP S/4HANA Cloud Public Edition.
• Finance-Led ERP covers key financial management best practices to run
administrative ERP, including procurement and sales capabilities.
• Service Centric ERP includes the Finance-Led ERP bundle, in addition to project and
service-related capabilities with industry-specific capabilities to support service-
oriented industries for midsize and large companies.
• Product Centric ERP provides all capabilities required to run make-to-stock-based
production followed by selling the produced goods from stock.
For each individual business process, the priority and rollout phase can be selected,
and questions or notes can be added to provide follow-up information. Finally,
additional requirements related to business processes can be entered, and detailed
project and scope-related questions are completed, such as the target customer go-
live date.

The completed Digital Discovery Assessment (DDA) will propose either the public or
private cloud deployment as the best-fit solution for the customer. If the customer
moves forward with signing a contract for either solution, the results of the DDA are
used as an important document for the incoming partner implementation team to
understand the scope and requirements of the project.

Digital Discovery Assessment - Detailed Discovery in System Conversions

For system conversions, the focus is on gathering information related to the
customer's current solution scope and ensuring all required functionality is
addressed with the private cloud solution. Additional details such as the current
system release, partner add-on requirements, selected hyperscaler, data sovereignty
requirements, and others are gathered during the sales process when preparing for
a system conversion.

Digital Discovery Assessment Report

The completed Digital Discovery Assessment (DDA) is reviewed by an SAP expert to

ensure the automated solution proposal from Detailed Discovery is correct. If the
SAP expert determines the automated recommendation is incorrect, they will change
the solution proposal to ensure the customer receives the right solution to best fit
their needs. The DDA can then be exported to a PDF report and used to define the
project scope when the implementation begins in the Prepare phase of the SAP
Activate Methodology.
The report provides the following information:

• Known integration and extension requirements.

• Localizations and legal entities.
• The percentage of business scenarios (scope items) selected in each functional
business area.
• Individual business processes selected.
• Business process priority and which implementation phase the process will be rolled-
out (optional).
• Questions and notes raised by a customer regarding specific business processes
and the corresponding answers from the sales account team.
• Additional business process-related requirements.
• Detailed project-related questions.

Knowledge quiz
It’s time to put what you’ve learned to the test, get 8 questions right to pass this unit.
Q1.

Which solution enables customers to document, design, and model their business processes?

SAP Signavio Process Insights

SAP Signavio Process Navigator

SAP Signavio Process Manager

D
SAP Signavio Process Collaboration Hub

Correct

That's correct!

Q2.

Which tool enables IT professionals and line of business experts to design and build engaging
business sites?

SAP Mobile Start

SAP Build Apps

SAP Build Process Automation

SAP Build Work Zone

Correct

That's correct!

Q3.

Which solution is a comprehensive service that delivers access to mission-critical business data
beyond just the core ERP?

SAP Analytics Cloud Planning

SAP Datasphere

SAP Business AI

SAP Digital Access

Correct

That's correct!

Q4.

What type of database is SAP HANA?

In-Memory

Disk

Column-Oriented

Row-Oriented

Correct

That's correct!

Q5.

What are some pre-selection packages that can be chosen on the Detailed Discovery of the Digital
Discovery Assessment?

Service Centric ERP

Lead to Cash

Recruit to Retire

Baseline
Correct

That's correct!

Q6.

An organization has their finance line of business (LoB) running in SAP S/4HANA Cloud Public Edition,
while the rest of the LoBs are running in SAP S/4HANA Cloud Private Edition. Which two-tier ERP
scenario is this an example of?

Central Services

Supply Chain Ecosystem

Headquarter and Subsidiary

Correct

That's correct!

Q7.

Which implementation method refers to a new implementation with a clean system?

Brownfield

Selective Data Transition

Greenfield

Correct

That's correct!

Q8.

What is the Digital Discovery Assessment used for?

To define the Service Level Agreement for the SAP S/4HANA Cloud solutions
As a hand-over document for the partner implementation team

To match a customer's requirements with the best-fit SAP S/4HANA Cloud solution

As the legal Bill of Materials purchasing document

Correct

That's correct!

Q9.

What is the central entry point to SAP S/4HANA for all users on desktop and mobile devices?

Core Data Services

SAP Fiori Launchpad

SAP Business Suite

SAP Fiori

Correct

That's correct!

YOUR SCORE

9/9

You passed Choosing a Deployment

4 Lessons
50 mins

Next up: Getting an Overview of the Cloud Mindset

Try Again
Cloud Mindset Overview
What is the Cloud Mindset?

First, organizations must recognize that cloud software is different than on premise
software, and therefore the mindset and methodology used to implement a cloud
solution will be different. SAP has tried to make the process of implementing SAP
S/4HANA Cloud solutions as clear as possible through a combination of tools and
resources, but the organization should also keep an open mind to what may feel new
or different when compared to past experiences.

The characteristics of implementing SAP S/4HANA Cloud Public or Private Edition

with a Cloud Mindset are:

1. Complete the deliverables and tasks defined in the relevant SAP Activate
Roadmap for each phase of the implementation. There are many moving
parts during an implementation, and the methodology ensures nothing is
forgotten. During an implementation, project team members from the
customer and partner implementation teams use the implementation apps of
SAP Cloud ALM to document and complete project tasks. Access to SAP
Cloud ALM is included in the customer's Enterprise Support for Cloud Editions
at no cost.
2. Use a predefined Solution Scenario from SAP Signavio Process Navigator as
the foundation for your business processes. SAP has been designing ERP
software with predefined business processes since the 1970's, and we use
our 50+ years of experience and regular feedback from customers to build
and continuously enhance our library of SAP Best Practice business
processes. Instead of having to maintain your own process documentation,
 the solution process flows and training tutorials on SAP Signavio Process
Navigator are always up to date with the latest release enhancements.
Tutorials in SAP Signavio Process Navigator are also available directly in the
SAP S/4HANA Cloud system through the embedded support to facilitate end
user training and adoption of new processes.
3. Use cloud integration technologies to connect your systems and applications.
SAP has created many prepackaged integrations to connect our own
applications to each other and provides free access to the packages through
SAP Signavio Process Navigator and the SAP Help Portal. These SAP Best
Practice integrations are built with the SAP Integration Suite and run in our
Platform as a Service, SAP Business Technology Platform. For custom
integrations, we provide a free library of APIs and adapters in the SAP
Business Accelerator Hub to support developers in building custom
integrations between SAP and third party applications. Running these custom
integrations on the SAP Business Technology Platform with the SAP
Integration Suite provides the lowest total cost of ownership for the customer
and they can use the operations apps in SAP Cloud ALM to monitor the
health of these integrations. Again, access to SAP Cloud ALM is included in
the customer's Enterprise Support for Cloud Editions at no cost.
4. Follow the Clean Core Strategy to stick to the standard business processes
whenever possible, and only make extensions to processes where it is
absolutely necessary to support your business requirements. When
extensions are required, use the applications in the SAP Fiori Launchpad
designed to help you build lifecycle-stable extensions first. If you cannot make
the required extension with the in-app functionality, use the SAP Business
Technology Platform to completely separate your extension from the core
software.
5. Manage organizational change throughout the entire implementation project.
Communication is essential to the adoption of the solution by end users, and
the organizational change management tasks from the SAP Activate
Roadmap need to be completed by someone. Organizations need to either
budget for change management services from the implementation partner or
establish an internal team to handle these important tasks.

SAP Activate Implementation Methodology and SAP

Cloud ALM
SAP Activate Roadmap Viewer Methodologies

The SAP Activate Roadmap Viewer is a library of implementation methodologies

designed to guide members of a project team through each phase, deliverable, and
task that needs to be completed during the implementation of a solution.
 • To implement SAP S/4HANA Cloud Public Edition, follow the SAP Activate for SAP
S/4HANA Cloud Public Edition (3-System Landscape) methodology.
• To implement SAP S/4HANA Cloud Private Edition, follow the SAP Activate
Methodology for RISE with SAP S/4HANA Cloud Private Edition methodology.

SAP Activate Implementation Phases

The implementation of the SAP Activate Methodology covers six phases.

These six phases include:

• Discover - The sales phase where a customer makes a purchase decision. The
Digital Discovery Assessment is used in this phase to help the customer identify the
SAP Cloud deployment that best fits their needs.
• Prepare - The implementation project begins with planning, preparation, and access
to the systems required for implementation tasks.
• Explore - Fit-to-Standard Analysis workshops are conducted between partner
consultant experts in each line of business area and customer experts in each line of
business area to review the predefined business processes in the SAP S/4HANA
Cloud system, identify configuration values, and gather customization requirements.
 • Realize - Partner consultants implement and configure business processes based on
the information gathered in the Fit-to-Standard workshops. User acceptance testing
must be completed before business processes are finalized.
• Deploy - Partner consultants conduct system cutover activities and the customer
confirms organizational readiness.
• Run - The customer maintains the system through future release upgrades and uses
the operations apps in SAP Cloud ALM to monitor integration and overall system
health.

Note

SAP Roadmap Viewer can be accessed through the direct link or through your SAP
for Me account → Services and Support dashboard → ALM tab → Roadmap Viewer
app.

SAP Cloud ALM

SAP Cloud ALM (Application Lifecycle Management) is included in the SAP

Enterprise Support for Cloud Editions, which is the base support package for all
customers purchasing an SAP Cloud solution. Applications within SAP Cloud ALM
are grouped into three sections: Implementation, Operations, and Service.

While the SAP Activate Methodology defines the tasks that need to be completed to
implement a solution, the implementation apps within SAP Cloud ALM make those
tasks actionable. A project manager can assign tasks to members of the project
team, and project team members track their notes and mark each task as complete
when finished.

The customer's IT team can use the operations apps within SAP Cloud ALM for full-
stack monitoring and alerting related to business processes, integrations, users,
applications, and the healthiness of their entire landscape of cloud and on premise
services and systems.
The service apps within SAP Cloud ALM provide a direct connection between the
customer and SAP support services, where customers can centrally access all
information for past, present, and future services.

SAP Best Practice Solution Processes in SAP

Signavio Process Navigator
SAP Signavio Process Navigator

SAP Signavio Process Navigator is the library of SAP's predefined business process
content for different solutions. SAP Process Navigator is the successor of SAP Best
Practices Explorer.

A solution scenario includes the documentation of each solution process in addition

to resources (known as "accelerators") that are designed to help with implementing
the business process content of the solution.

A solution process describes the process steps involved with completing an activity
from start to finish in the relevant system. For example, the solution process Time
Recording (1Q4) guides you through the process of an employee recording actual
working time against accounting objects in the relevant application. The terms,
solution process and business process are synonymous.

A solution process is visually displayed in the solution process flow diagram, and the
steps to complete the process in an actual SAP S/4HANA Cloud system are
documented in the test script, located in the accelerators section. Many solution
processes have task tutorials, which are simulations that guide a user through the
steps of the test script in a virtual SAP S/4HANA Cloud environment. These same
tutorials can be found in a live SAP S/4HANA Cloud system as part of the embedded
support. If a task tutorial is available, an additional tab will display in the accelerators
section titled, End-User Information.

An additional test script with (SAP Cloud ALM) in parentheses is for the
implementation team to use when creating manual test cases in SAP Cloud ALM for
the final user acceptance testing after each solution process has been configured in
the customer's SAP S/4HANA Cloud system landscapes. If a solution process
requires a predefined integration or other prerequisite tasks to function correctly, set-
up instructions are also provided in the accelerators section.
The solution scenarios relevant for SAP S/4HANA Cloud Public Edition are:

• SAP Best Practices for SAP S/4HANA Cloud Public Edition: Master package of all
preconfigured business processes available in SAP S/4HANA Cloud Public Edition.
• SAP Best Practices for SAP S/4HANA Cloud for Public Sector: Selection of business
processes from the master package with a focus on public sector management. The
solution provides core business processes in finance, sourcing and procurement, and
budgeting.
• Service Centric ERP for SAP S/4HANA Cloud Public Edition: Selection of business
processes from the master package with a focus on service centric ERP. The solution
provides best practices for financial management, industry-specific capabilities for
project and service-related operations, with a particular emphasis on serving small
and midsize companies in service-oriented industries.
The solution scenarios relevant for SAP S/4HANA Cloud Private Edition are:

• SAP Best Practices for SAP S/4HANA Cloud Private Edition: Master package of all
preconfigured business processes available in SAP S/4HANA (on premise) and SAP
S/4HANA Cloud Private Edition.
• Enterprise Management Layer for SAP S/4HANA: Selection of business processes
from the master package with a focus on providing a global template for customers
operating in multiple countries. It offers preconfigured, localized business processes
for up to 49 countries with a corporate financial design that allows parallel accounting
according to group and local requirements based on three sets of ledgers and
accounting principles (Group/Local/Tax).

Note

SAP Signavio Process Navigator can be accessed through the direct link or
through SAP for Me → Services & Support dashboard → ALM tab → SAP Signavio
Process Navigator app.

Cloud Integration with the SAP Integration Suite

Cloud Integration Technologies
Implementing a new ERP software is a perfect opportunity to re-evaluate the
technology used to build and host your integrations. Any application that needs to
send data to, or consume data from, SAP S/4HANA Cloud (public or private) will
need to be set up with a new integration. The Integration Solution Advisory
Methodology is a framework to help customers evaluate their landscape and build
new integrations using the available tools.

First, check SAP Signavio Process Navigator to see if you can find a prepackaged
solution process that addresses the integration requirements. SAP builds these
integration packages using the SAP Integration Suite, and the integrations run on
SAP Business Technology Platform. Because SAP has already built the integration
package, you will find set-up instructions on how to activate the integration in your
SAP S/4HANA Cloud system. As the owner of the integration package, SAP is
responsible for the maintenance.

If none of the integrations in SAP Signavio Process Navigator meet your needs, a
custom integration will need to be implemented. A library of integration packages,
Application Programming Interfaces (APIs), adapters, and other resources built by
SAP and our partner developers is available in the SAP Business Accelerator Hub.
Content in the SAP Business Accelerator Hub is also built using technologies that
run on the SAP Business Technology Platform such as the SAP Integration Suite. A
developer can build a custom integration package using APIs from the library, and
monitor the integration using the SAP Cloud ALM operations apps moving forward.
Whether you use a packaged integration from the SAP Business Accelerator Hub or
build an entirely custom integration, the responsibility for maintaining the integration
is on the customer's IT team. However, SAP is responsible for maintaining the
platform where the integration lives (SAP Business Technology Platform).

Cloud Integration with the SAP Integration Suite

Cloud Integration Technologies

Implementing a new ERP software is a perfect opportunity to re-evaluate the

technology used to build and host your integrations. Any application that needs to
send data to, or consume data from, SAP S/4HANA Cloud (public or private) will
need to be set up with a new integration. The Integration Solution Advisory
Methodology is a framework to help customers evaluate their landscape and build
new integrations using the available tools.

First, check SAP Signavio Process Navigator to see if you can find a prepackaged
solution process that addresses the integration requirements. SAP builds these
integration packages using the SAP Integration Suite, and the integrations run on
SAP Business Technology Platform. Because SAP has already built the integration
package, you will find set-up instructions on how to activate the integration in your
SAP S/4HANA Cloud system. As the owner of the integration package, SAP is
responsible for the maintenance.

If none of the integrations in SAP Signavio Process Navigator meet your needs, a
custom integration will need to be implemented. A library of integration packages,
Application Programming Interfaces (APIs), adapters, and other resources built by
SAP and our partner developers is available in the SAP Business Accelerator Hub.
Content in the SAP Business Accelerator Hub is also built using technologies that
run on the SAP Business Technology Platform such as the SAP Integration Suite. A
developer can build a custom integration package using APIs from the library, and
monitor the integration using the SAP Cloud ALM operations apps moving forward.
Whether you use a packaged integration from the SAP Business Accelerator Hub or
build an entirely custom integration, the responsibility for maintaining the integration
is on the customer's IT team. However, SAP is responsible for maintaining the
platform where the integration lives (SAP Business Technology Platform).

Clean Core Strategy

The SAP Clean Core Strategy

The core of ERP software consists of six fundamental dimensions: software stack,
extensibility, integrations, processes, data, and operations. With a clean core, the
performance of each ERP dimension improves.
Watch a video

Watch this video to learn about the clean core strategy from Paul Saunders, SAP
Chief Evangelist for Cloud ERP.

Note

Learn more about the SAP Clean Core strategy.

Extensibility Types and Tools

Extensibility Tools

When extensions (customizations) to applications or processes are required, use

the SAP Extensibility Explorer to identify which type of extensibility best addresses
the requirement, and find learning resources on how to implement the extension.
Build extension within SAP S/4HANA Cloud (in-app)

There are a few types of in-app extensibility possible within SAP S/4HANA Cloud
(public or private) directly:

• Key User Extensibility uses the SAP Fiori apps on the launchpad designed to
facilitate a user adding custom fields, logic, and other lifecycle-stable extensions to
SAP S/4HANA Cloud without developer knowledge. These extensions are built in the
customizing tenant of the development system and moved to other systems through
transports. Most of the SAP Fiori extensibility apps are available for all deployments
of SAP S/4HANA, however there are a few differences.

Note

To check if an SAP Fiori app is available for a certain deployment of SAP S/4HANA,
look up the app in the SAP Fiori Apps Reference Library. If the app is available for
more than one deployment, there will be a drop-down menu that lets you toggle
between SAP S/4HANA Cloud (referring to just public cloud) and SAP S/4HANA (this
includes both private cloud and on premise). For example, the Custom Fields app is
available for all deployments.

• Developer Extensibility uses the development tenant of the development system to

make changes to released SAP objects with upgrade-stable ABAP code. This type of
extensibility is only possible for SAP S/4HANA Cloud Public Edition (3-system
landscape), because the development environment is controlled to only allow
changes to specific SAP objects. Even though developer extensibility is possible, we
recommend exhausting all key user extensibility options first, then moving to side-by-
side extensibility for more complex extensions using the SAP Build licenses included
in the GROW with SAP enablement package.
• Classic Extensibility uses the development tenant of the development system to
make changes to any SAP object with ABAP code. This type of extensibility is only
possible for SAP S/4HANA Cloud Private Edition (and on premise), and is generally
not recommended. The major concern is that customizations can become unstable
since there are no restrictions on the ABAP code you can use, or the objects you can
change. Just as with developer extensibility, we always recommend first exhausting
all key user extensibility options, then moving to side-by-side extensibility for more
complex extensions using the SAP Build licenses included in the RISE with SAP
enablement package.

Build extension in SAP Business Technology Platform

The other type of extensibility separates the extension into a different platform. This
ensures the extension is always stable and will not be affected by release upgrades
in the SAP S/4HANA Cloud system.

Side-by-Side Extensibility uses the SAP Business Technology Platform to host

custom extensions and integrate them to the SAP S/4HANA Cloud system. SAP
Build enables business users with no development knowledge to create apps and
automate processes in a low/no-code environment, while developers can use tools
like the SAP Business Application Studio to build extensions and applications with
classical coding languages (Java, JavaScript, Python, etc.).
Use existing application built by SAP Partner developers

When considering developing an entirely custom extension, check to see if an

existing solution or application developed by our partner ecosystem meets your
needs from the SAP Certified Solutions Directory, or the SAP Store. Industry cloud
solutions can be found in the SAP Store too.

Note

To support a Clean Core Strategy, establish a Solution Standardization Board (SSB)

to act as a body overseeing compliance with the strategy. The SSB is set up in the
customer IT organization and reports to the steering committee during
implementation. The SSB reviews proposed developments that deviate from the
cloud mindset and clean core strategy and documents the logic behind why the
development what approved. As new functionality becomes available through
release upgrades in the software, the customer may be able to eventually remove
the development and move to the standard functionality. The documentation helps
customers remember why a certain development was done and makes it easier to
remove it when a suitable alternative becomes available. Learn more about
establishing an SSB for Public Edition or SSB for Private Edition.

Organizational Change Management Best Practices

Importance of Organizational Change Management

Research by McKinsey and Company found, "change programs with governance

structures clearly identifying roles and responsibilities are 6.4 times more likely to
succeed", in the paper, How do we manage the change journey?. McKinsey also
found employee engagement, especially early in the planning process to be a key
indicator of success in a global analysis of successful organizational transformations.

To foster engagement, they suggest breaking the change process into small, clearly
defined activities, and involving employees to give them a sense of ownership in the
change initiative. In addition, regular communication from the executive stakeholders
is important in keeping employees engaged, positive, and reducing change fatigue
during a large-scale transformation.
This is why SAP created the SAP Activate Methodology - to provide a literal
roadmap for partners and customers to follow during an implementation, and after
go-live to maintain the solution through future release upgrades. Each deliverable
consists of small, clearly-defined tasks that are targeted to specific role(s), and
include templates and/or resources to help the responsible person get started right
away.

McKinsey's extensive research on organizational change management also found

the following characteristics to be essential for creating a change plan closely tied to
success:

• Assessing a company's present situation rigorously

• Identifying the current state of corporate capabilities and problems
• Explicitly identifying underlying mindsets that must change for the transformation to
succeed

Premortem Analysis with the Project Team

In his 2004 book, The Power of Intuition, researcher Gary Klein devised a
"premortem analysis" procedure to help teams develop the ability to quickly adapt to
changing situations as exceptions occur over the course of a project. The idea came
from a study he conducted at the University of Colorado, Colorado Springs that
found prospective hindsight, where you imagine an event has already occurred, can
increase a person's ability to correctly identify reasons for future outcomes by up to
30 percent. This means that if you imagine an event has already occurred in great
detail, you are able to learn many of the same lessons you would have learned if the
event had actually happened in real life.
A premortem comes at the beginning of a project, so the team can anticipate
potential issues that could happen and develop resolutions in advance. If and when
any of those problems occur during the project, the team can quickly and easily
implement the resolution they've already identified.

This is how Gary Klein describes the procedure: "Start by assuming [your]
undertaking has failed spectacularly. Then, over the next few minutes, write down
every reason you can think of for the failure […]. Then, revisit your plans in light of
the pitfalls you've uncovered, and generate ideas as to how you can minimize their
likelihood of occurring or avoid them altogether". Klein also recommends the team
periodically review their premortem list of potential issues and resolutions as they
make progress through the project.

The best case scenario is for our partners to facilitate successful implementations,
and our customers to have successful implementations that are well-adopted by their
employees. Instead of having to learn the lessons of a failed project the hard way,
consider using the premortem analysis as an early activity to help the customer and
partner implementation teams build a trusting relationship, and stay flexible in their
thinking throughout the project.

SAP's Organizational Change Management Framework

SAP's Organizational Change Management (OCM) framework has six dimensions,

structured into work packages that contain best practice methods, tools, and
templates.
The dimensions are:

• Change Strategy outlines the direction of the change management activities for a
digital transformation project. It provides the blueprint from which to manage complex
changes across multiple entities, various locations and/or countries.
• Change Leadership aims to identify and implement appropriate mechanisms for
managing all individuals and groups who are affected by or can influence the
success of a digital transformation project. The respective activities help to promote a
shared positive attitude towards the changes.
• Change Communication targets to provide the right message to the right people, at
the right time. It is the systematic planning, implementing, monitoring, and revision of
all communication activities within a digital transformation project toward the project
stakeholders.
• Change Realization includes the identification and management of changes
associated with a digital transformation on the relevant stakeholder groups (e.g.
regarding skills, business processes, technology, organization, and mindset). This
fosters a smooth transition from the current to the future status-quo.
• Change Enablement provides full training for the users throughout the transformation
process. Role based user training will be developed and provided to meet user
specific needs as the system is rolled out.
• Change Effectiveness encompasses all activities that can be applied to measure the
effectiveness of OCM activities supporting the digital transformation. It focuses on
criteria such as organizational readiness, user adoption and satisfaction as well as
user behavior after go-live to enhance adoption.

Note

• Take a deeper dive into OCM with the free Learning Journey: Discover
Organizational Change Management for SAP Cloud Projects
• Learn how to set up your end-users for success with the free Learning
Journey: Getting Started with Learning and Enablement in SAP Projects

Resources to Support Organizational Change Management

SAP delivers several different templates and resources (what we call "accelerators")
for customers and partners to use during their implementation projects to support
organizational change management activities. Find the accelerators in the relevant
SAP Activate Methodology for SAP S/4HANA Cloud Public Edition or Private Edition
by selecting the Solution Adoption workstream, or the Organizational Change
Management tag. During an implementation project, these accelerators can be
downloaded from the relevant tasks via SAP Cloud ALM.

Note

Do you need support navigating OCM in your implementation project? Purchase

comprehensive change management services from SAP here.

Knowledge quiz
It’s time to put what you’ve learned to the test, get 8 questions right to pass this unit.
Q1.
What could be included in a solution process?

Process flow diagram

Test script

Task tutorial
D
Solution scenario
E
Form templates

Correct
That's correct!
Q2.
What can be used to identify which type of extensibility best addresses a requirement, and
how to implement the extension?

SAP Extensibility Explorer

B
SAP Business Application Studio
C
SAP Business Technology Platform
D
SAP Extensibility Cockpit

Correct
That's correct!
Q3.
Where should you look first to find SAP-delivered integration packages?
A
SAP Business Technology Platform
B
SAP Business Accelerator Hub

SAP Signavio Process Navigator

D
SAP Cloud ALM for Operations

Correct
That's correct!
Q4.
Which of the following are phases of the SAP Activate Methodology?
A
Operate

Realize

Explore
D
Design

Deploy

Correct
That's correct!
Q5.
A customer created a custom application using SAP Build, and integrated the app with their
SAP S/4HANA Cloud system. What type of extensibility is this?
A
Developer Extensibility
B
Key User Extensibility
C
Classic Extensibility

Side-by-Side Extensibility

Correct
That's correct!
Q6.
Which area of SAP Cloud ALM is used by the customer's IT team for full-stack monitoring
and alerting?
A
SAP Cloud ALM for Implementation

SAP Cloud ALM for Operations

C
SAP Cloud ALM for Service

Correct
That's correct!
Q7.
Which of the following are characteristics of the Cloud Mindset?

Use SAP Cloud ALM to complete implementation tasks defined in the SAP Activate
Methodology
B
Use predefined solution scenarios from SAP Signavio Process Insights as the foundation for
your business processes
C
Use SAP Solution Manager to complete implementation tasks defined in the SAP Activate
Methodology

Use predefined solution scenarios from SAP Signavio Process Navigator as the foundation
for your business processes

Correct
That's correct!
Q8.
Where can you find existing applications, including Industry Cloud apps, built by the SAP
Partner ecosystem?
A
SAP Business Accelerator Hub

SAP Store
C
SAP Business Application Studio

SAP Certified Solutions Directory

Correct
That's correct!
Q9.
Where can you find the accelerators supporting organizational change management
implementation tasks?
A
SAP Signavio Process Navigator

SAP Activate Methodology

C
SAP Business Accelerator Hub

SAP Cloud ALM

Correct
That's correct!
Q10.
Which dimension from SAP's Organizational Change Management framework aims to
identify and implement appropriate mechanisms for managing all individuals and groups who
are affected by, or can influence the success of a digital transformation project?
A
Change Strategy
B
Change Communication
C
Change Realization

Change Leadership

Correct
That's correct!

YOUR SCORE

10/10

You passed Implementing with a Cloud Mindset

6 Lessons

1 hr 10 mins
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