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AGENDA
• What do they mean?
– Digital Transformation
– Enterprise Architecture
• Aligning architecture to strategy
– Strategy planning
– Architecture planning
• Execution
– Examples
– Tools
DIGITAL TRANSFORMATION
”The future is
already here—
it’s just not
evenly
distributed.”
Digital transformation refers to the changes associated with the application of digital
technology in all aspects of human society.
Digital transformation may be thought as the third stage of embracing digital
technologies: digital competence → digital usage → digital transformation, with usage
and transformative ability informing digital literacy.
The transformation stage means that digital usages inherently enable new types of
innovation and creativity in a particular domain, rather than simply enhance and
support the traditional methods.
ASUG - LEADERSHIP & CLARITY
CEO of ASUG – Geoff Scott’s
Series of 6 Blogs on
Digital Transformation
Visit: my.asug.com/digitaltransformation
• ASUG & DSAG Whitepaper on Digital Transformation
– The SAP User Community Perspective
http://www.asugnews.com/article/asug-dsag-white-paper-digital-transformation-sap
• 4/20: Digital Here We Come – what SAP customers need to know
ASUG TAKING A PRO-ACTIVE LEADERSHIP ROLE
CEO of ASUG – Geoff Scott’s Blog Series on
Digital Transformation
Visit: my.asug.com/digitaltransformation
Some Notable Blog Quotes:
• “This revolution is called Digital Transformation, or DT, and
while it seems to be the thing everyone is currently talking
about, it really is nothing new. It was put into motion with the
advent of the first computer, and with every passing year it
gains tremendous speed, depth and breadth. It grows only
stronger as each mobile device, tablet and connected-sensor
is imagined and sold. It has the same exponential growth
curve as the Internet, and as more people and devices
connect it only gains more strength. With DT, every industry,
organization and structure will change. The transactional
business world we live in today will be fundamentally
transformed. This is the stark reality”
ASUG TAKING A PRO-ACTIVE LEADERSHIP ROLE
CEO of ASUG – Geoff Scott’s Blog Series on
Digital Transformation
Some more Notable Blog Quotes:
• “Within the broad topic of DT are many other concepts: Big data,
predictive analytics, mobility, IoT and cloud computing are often
the first terms that come to mind. While these are important
components of DT, we believe the concept embraces much more:
new insights available from new sources of data, the use of realtime analysis as a competitive differentiator and the emergence
of event-driven, disruptive new business models. Your technology
investments, most importantly ERP, stand at the crossroads of DT.
They can either be huge enablers of this change or immense
roadblocks. In many of our member organizations, both
statements are equally true. The challenge is to definitively and
quickly transform roadblocks into enablers. ”
ASUG TAKING A PRO-ACTIVE LEADERSHIP ROLE
CEO of ASUG – Geoff Scott’s Blog Series on
Digital Transformation
Some more Notable Blog Quotes:
• “Computing without Borders: If terms such as AWS, Azure,
HEC and HCP are not on your radar, or not understood, this is
another area to invest time and energy to not only learn but
develop an agile strategy that considers adoption scenarios
and ultimately creates business value.”
SOMETIMES ITS HARD TO IMAGINE
DIGITAL TRANSFORMATIONS
WHAT’S CHANGED FROM THE LAST REVOLUTION?
• Your Enterprise Architecture
– Last revolution
•
•
•
•
Early stages of development in most companies
Limited Focus and Influence
Limited access to community
Slower rate of change
– Today
•
•
•
•
•
•
More aligned with business strategy
More mature processes and view of current state
Better visibility to business & technology trends
Better visibility to Industry Best Practices
Supported by community
Faster rate of change
ENTERPRISE ARCHITECTURE GOALS
• It helps an organization achieve its business strategy:
– Without understanding business, application and technical architecture, a
business doesn’t know what it has or doesn’t have.
• Faster time-to-market of new innovations and capabilities:
– If IT can introduce new technologies faster and functionalities faster, the
organization can respond faster to competitive pressures.
– These areas are most likely to be aligned when business and IT staff collaborate
closely in the development of Architecture artifacts.
• More consistent business processes and information across business
units:
– Architecture can unlock the power of information, unifying information silos
that inhibit business processes.
– Identify processes, applications, and data that need to be consistent if
consistent decisions are to be made.
• More reliability and security, and less risk:
– Architecture provides clear traceability between business processes, data,
applications and infrastructure.
ENTERPRISE ARCHITECTURE DEFINITION
– Enterprise Architects work with stakeholders, both leadership and subject
matter experts, to build a holistic view of the organization's
strategy, processes, information, and information technology
assets. The role of the enterprise architect is to take this knowledge and
ensure that the business and IT are in alignment. The enterprise
architect links the business mission, strategy, and processes of an organization
to its IT strategy, and documents this using multiple architectural models or
views that show how the current and future needs of an
organization will be met in an efficient, sustainable, agile, and adaptable
manner.*
–
*Wikipedia
TRANSFORMING BUSINESS WITH
SAP ENTERPRISE ARCHITECTURE
Holistic
Alignment
Holistic view of SAP’s strategy,
business processes, application
information and technology assets
Ensure that the business, IT and
SAP product development are in
alignment
Co-Innovation
Direction
Planning
Validation of innovation and it’s
impact to the Enterprise
Architecture (Business,
Application, Data Technology)
Provide direction by aligned EA
vision and target architecture.
Support execution by standards
and best practices.
Basis for program planning and
annual budget discussions
Foresight
Balance long-term planning with
pragmatic execution
Enterprise Architecture enables Transformation
ENTERPRISE ARCHITECTURE
SAP ENTERPRISE ARCHITECTURE
Business
Strategy
Risk, Security &
Reliability
Capability Focus
Process Focus
Application Architecture
Data Architecture
Technology Architecture
Realization
Business
Information
Technology
Business
Process
SAP ARCHITECTURE
Time to
Market
Strategy Focus
STRATEGY ALIGNMENT
• Architecture participate in Business Strategy
development is best case scenario
• Business strategy drives IT principles &
frameworks
• Create/Maintain current state & future state
views – create/align/maintain roadmaps
• Align Business & IT - Translate complex into
business language
KEY SUCCESS FACTORS
?
EXECUTION
•
•
•
•
•
Overlay Business Process with SAP Process maps
Identify impacts of process breaks
Identify where best for integrated vs non
Identify redundancies or unnecessary pieces
Standard for core competency – develop for
competitive advantage
• Mobile first UI strategy
• Evaluate - On premise, Cloud & Hybrid strategy
• Gain value & determine timing with Pace Layering
PACE LAYERING
A REAL WORLD CONCEPT TRANSLATED TO IT BY GARTNER
TRANSFORMATION
RE-SEQUENCE TO FOLLOW THE MONEY
Activity
Phase 1
Phase 2
Phase 3
Systems of Innovation
Systems of Discovery
Systems of Differentiation
Systems of Record
Time
21
INNOVATION EXAMPLE
S4 Hana Finance
SAP
ERP 1
SAP
ERP 2
SAP
ERP 3
NonSAP
ERP 4
NonSAP
ERP 5
NonSAP
ERP 6
EXAMPLES
EXAMPLE
CUSTOMERS PROCESS MAPPING
STRATEGY
Customer Strategy
Corporate Strategy
Brand Strategy
Portfolio Strategy
Channel Strategy
Format Strategy
PLAN & BUY
MERCHANDISING PLANNING
MERCHANDISE MANAGEMENT
MARKETING
Category Management
Merchandise
Financial Planning
Product Sourcing
Regular Price
Optimization
Assortment Planning
& Optimization
Key Item
Planning
Markdown
Optimization
Location
Planning
Private Label Design
and Development
Vendor
Management
Promo Planning &
Optimization
Price & Promotion
Management
Macro Space
Vendor Funds
Planning
Assortment
Execution
Visual
Merchandising
Manage Costing
and Rebates
Promotion
Forecasting
Tiered / Customer
List Pricing
Public Relations /
Communications
Marketing Program
Mgmt and Workflow
Brand Marketing
Ad Budgeting &
Planning
Private Label
Marketing
Creative
Execution
ENTERPRISE ANALYTICS
Market Insights
Performance
Analysis
Customer Analytics
Merchandise
Analytics
Channel Analytics
Marketing
Analytics
Supply Chain
Analytics
Finance Analytics
HR Analytics
Real Estate
Analytics
Big Data Analytics
MOVE
SUPPLY CHAIN COLLABORATION
ASSET AND FLEET MANAGEMENT
Inventory Planning
Import Management
Inventory
Optimization
Allocation
Management
Enterprise Inventory
DC Slotting
Yard Management
DC Task Mgmt /
Directed Work
DC Loss Prevention
Capacity / Production
Planning
Finance
Goods Receiving
Core Financials /
GL
Tax
Manufacturing & Dispatch
Fixed Assets
DC Automation
Transport Sourcing &
BUSINESS
Carrier Mgmt
FOUNDATION
FULFILLMENT MGMT
PO Management
DC Operations
MANUFACTURING
Network Monitoring
Demand Forecasting
DISTRIBUTION MGMT
Network & Flow
Strategy
INVENTORY MGMT
NETWORK MGMT
ENTERPRISE SERVICES
DC Labor Plan &
Schedule
Human Resources
Transportation
Talent Acquisition
Planning
Learning Management
Transportation
Settlement
TECHNOLOGY
FOUNDATION
Information / Data
Parcel FulfillmentInformation Technology
Strategy
Master, Reference and
Metadata Management
Transportation
Reverse Logistics
Management
Talent Management
Data Quality Management
Infrastructure
Security
Computing Components
Threat Detection and
Management
Network Components
User Profile, Identity and
Access Management
Storage Components
System Hardening
Computing Accessories
Security Monitoring
Plant Maintenance
Accounting
Admin and Payroll
Financial Reporting
Benefits / Leave
Risk Management
Records / Reporting
Treasury
Data Lifecycle Management
Data Center Infrastructure
Components
Integration
Service Management
Service Lookup & Indirection
Catalogue and Continuity
Management
Provisioning
Transport and Delivery
Compliance Management
Production / Use
Indirect Procurement
Real Estate
Corporate Support
Real Estate Strategy
Audit and Controls
Facilities Management
Sustainability
Property Management
Legal
Lease Management
Mobile Device Management
Message Routing
Business Service Level
Management
Maintenance / Updates
Transport Type Bridging
Availability Management
Monitoring
Replication and
Synchronization
IT Service Level Management
Decommissioning
2
6
Company A
Company B
SAP SOLUTION MAPPING TO INITIATIVE
STRATEGY
Customer Strategy
Corporate Strategy
Brand Strategy
Portfolio Strategy
Channel Strategy
Format Strategy
MERCHANDISING PLANNING
PLAN & BUY
MERCHANDISE MANAGEMENT
Insight
& Personalization
Category
Management
CAR
Biz Networks
Merchandise
Commercial
Financial Planning
Regular Price
Commercial
Optimization
Planning
Markdown
DM
Optimization
Ariba Discover
Assortment
Planning
APR, SPR&
Optimization
Product Sourcing
Commercial
Planning
Key Item
Planning
APR, SPR
Location
Planning
Private Label
Coreand
Design
PPM
Development
Planning
Promo Planning &
Commercial
Optimization
Planning
Vendor
PMRFunds
Vistex
Planning
BizVendor
Networks
Ariba Discover
Management
Macro Space
Assortment
Execution
Visual
Merchandising
Price & Promotion
Core Management
Public Relations /
Communications
Marketing Program
Mgmt and Workflow
Brand Marketing
Ad Budgeting &
Planning
Private Label
Marketing
Creative
Execution
IS Retail
Manage Costing
Vistex
and Rebates
Supply Chain
Promotion
Execution
Forecasting
F&R
MARKETING
Tiered / Customer
List Pricing
ENTERPRISE ANALYTICS
SUPPLY CHAIN COLLABORATION
Merchandise
Analytics
MM
Import
Supply
Chain Ex.
GTS
Management
F&R
Allocation
Management
Core
Enterprise
Inventory
DC Labor Plan &
Schedule
DC Operations
DC Slotting
Yard Management
Supply Chain Execution
DC Task Mgmt /
Directed Work
DC Loss Prevention
EWM
DC Automation
MM
Company A
Company B
SFSF
HR Analytics
IS Retail
WF Analytics
RealCore
Estate
Real Estate
Analytics
Big
Data
HANA
Lumira,
BI, PAL
Analytics
Core
ASSET AND FLEET MANAGEMENT
Ariba
PO Management
Core
Inventory
Optimization
Core
Finance
Analytics
Ariba CSC
DISTRIBUTION MGMT
NetworkSNP
Monitoring
INVENTORY MGMT
NETWORK MGMT
Network & Flow
Supply
Chain
Strategy
Execution
Supply Chain
Supply
Chain
Execution
Analytics
SPM
MOVE
Biz Networks
Biz Networks
Demand
Forecasting
Commercial
Planning
Inventory
Planning
Marketing
Analytics
Legend
CapacityCore
/ Production
PP
Planning
GoodsCore
Receiving
Manufacturing &
PP, MM
Dispatch
Core
Plant Asset
Maintenance
Mgt.
FULFILLMENT MGMT
Market Insights
Customer
Channel
Insight & Personalization
Analytics CAR/CEC Analytics
MANUFACTURING
Performance
Analysis
Asset / Fleet Mgt.
Transport Sourcing &
Transportation
Carrier Mgmt
Settlement
Supply Chain Execution
Transportation
Parcel Fulfillment
Planning
TM
Transportation
Management
Reverse Logistics
PROCESS BREAKPOINTS AND IMPACTS
HARDWARE TCO ANALYSIS
• Why it was important to some customers
– Believed they had lowest infrastructure cost levels and
replacing to new equipment would be cost prohibitive
• The reality was
– When apples to apples it was a savings or least a wash
– They really had not seen there TCO recently (reality vs
perception)
– Did not include the short and long term spend to keep
legacy going (upcoming lifecycle costs)
OFFICIAL INFORMATION FOR PRODUCTS
SAP Solution Explorer
(http://www.sap.com/solutionexplorer):
Browse via value maps or via solutions to to explore
relevant end-to-end solutions, solution capabilities ->
via the solution capabilities you can relate to SAP
products and license materials
SAP Improvements &
Innovations(http://service.sap.com/findinnovation):
Central link to Innovation Discovery (currently
focused on Business Suite) centrally describing
detailed innovations for specified solution capabilities
Product Availability Matrix
(https://support.sap.com/pam):
Remark: The printed version of the SAP Release Strategy Brochure
will be discontinued
list of all on-premise products available from Product Availability
Matrix
Details about SAP software product versions,
including availability and end of maintenance dates,
upgrade paths, and technical release information
(database platforms, Java platforms, operating
systems, and so on).
TOOLS
Product Availability Matrix (https://support.sap.com/pam):
Details about SAP software product versions, including availability and end of maintenance
dates, upgrade paths, and technical release information (database platforms, Java platforms,
operating systems, and so on).
1
3
2
4
5
1.
2.
3.
4.
5.
Click on settings
Select view type
Search for Product
Select Product
Find relevant data
KEY TAKE AWAY’S
• Digital Transformation – not if but when
• Our companies have been here before
• Leverage EA during the transformation to the
Digital Enterprise
• It will never be as slow as it is right now
• You are not alone - we are all in this together as
part of the ASUG community
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