SAP IN THE NEW

S4HANA LED FUNCTIONAL

TRANSFORMATION

9th April 2020

AGENDA

1 CASE FOR DIGITAL TRANSFORMATION – LVERAGING S4HANA

2 INTRODUCTION TO S4HANA & SELECT CREDENTIALS

3 INDIA MARKET POTENTIAL

4 CASE STUDY
• S4HANA TRANSFORMATION FOR A LIFE SCIENCES CLIENT
• S4HANA TRANSFORMATIONF FOR A CONSUMER GOODS CLIENT
CASE FOR DIGITAL TRANSFORMATION – LEVERAGING SAP S4HANA
AS ENABLER

• NEED FOR SCALABILITY with expansion into new categories and geographies, M&A and Digital opening
new opportunities

• NEED FOR RENGINEERED PROCESSES to adapt to current business scenario and be digital ready

• PLATFORM & ARCHITECTURE LED APPROACH to simplify technology landscape and provide Agility to
business

• THINKING BEYOND ERP to manage growing business complexity & transforming core functions with
niche platforms/digital IT interventions (supply chain, procurement, manufacturing, Finance and HR)

• BUSINESS CASE DRIVEN SELF FUNDED TRANSFORMATION with limited seed funding
SAP S4HANA IS EVOLVING AS A PLATFORM TO ENABLE DIGITAL
TRANSFORMATION
Guided Buying
2020+
Supplier
SYSTEMS OF RECORD
Collaboration
Marketplace
HR
TODAY Procurement CRM
Supply chain
INNOVATION
STANDARDIZATION Planning
Internet of Things
APIs
Customer
SCM Experience

ERP CORE SIMPLIFICATION DIGITAL

DIGITAL
ERP CORE SIMPLIFICATION CORE Other
CORE Business
Applications Predictive
Blockchain Analytics
Mobility
Industry Analytics/
Big Data Automation
INNOVATION leveraging RPA
Augmented
Reality
AI / Machine
Learning Internet Connected
of Things Supply chain

SYSTEMS OF INNOVATION
Copyright © 2018 Accenture. All rights reserved. 4
BUSINESS TRANSFORMATION ENABLED THROUGH S4HANA
HAS POTENTIAL TO DRIVE 1-2% EBITDA IMPROVEMENT
Illustrative

QUANTIFIED BENEFITS QUALITATIVE BENEFITS

Sales loss reduction & SUPERIOR USER SUPERIOR HIGHER INCREASED DIGITAL
EXPERIENCE ANALYTICS AUTOAMTION COVERAGE ARCHITECURE
Inventory Optimization • Adding
• 100+ Ready • Leveraging OCR • System
17 - 20 Cr dashboards and SAP VIM to mandated mobility to the
and apps reduce 20 to DOA for core
Mobile
• Embedded 30% efforts by purchase • Open
approval
Spend optimization s data automating approvals architecture
warehouse for • for integrating
10 – 12 Cr invoice More
cloud apps
customizing clearance processes
more • Identifying covered in SAP • Faster in-
Budgeting & Control • What-if processes ready memory SAP
simulations & HANA
4 – 6 Cr for automation
database
predictive
capabilities
Improved profitability
Simplified screens
3 - 4 Cr

Improved Better and faster Improved Better

34 – 42 Cr productivity decisions Compliance adoption
Quantified benefits
WE ARE WORKING WITH LEADING COMPANIES ON S4HANA LED
TRANSFORMATIONS
Our recent S4HANA wins in India

500+ HANA implementations

completed or ongoing

300+ S4/HANA implementations

completed or ongoing including Additionally, we are helping leading
Accenture organizations to transform business leveraging
S4HANA

60+ S4HANA implementation for

clients with revenue > $10Bn
DATA SHOWS HUGE MARKET POTENTIAL FOR S4 LED
TRANSFORMATION DURING NEXT 2-4 YEARS
Accenture Top-Down Addressable Market from current

> 60% of companies will migrate to

S4HANA in next 2-4 years 4% market share of
Accenture

Customer Split - India Count USD$ 400 Mil

SAP Total Installed Base (ECC) 5500 Potential opportunity for
Customers migrated to S4H 2310 Average deal size of S4H Accenture
New S4H Customers 120 In Govt deals USD 10 Mil
Opportunity for next 3 years from current ECC
customers 3550
Average deal size in other
companies USD 2 Mil

Typical S4H transformation deal have 30-70% split of

Consulting & Technology
CASE STUDY- LEADING
LIFE SCIENCES COMPANY
COMPETITION WAS ADVISING MANKIND PHARMA TO TAKE A
MIGRATION BASED LESS DISRUPTIVE ROUTE TO MODERNIZE SAP
…However, based on our assessment, we believed that Mankind could extract substantial business
value if they discarded their old SAP and adopted an unconstrained approach to re-design and
transition from their old SAP to next generation S/4HANA.

What are the prerequisites

What should be the To-Be before embarking on the
application landscape to journey to S/4HANA?
enable an Intelligent
Enterprise?

Should S/4HANA How should Mankind chart

transition be Greenfield a roadmap for automation,
or Brownfield? journey to cloud and
analytics?

Current IT Coverage

Functional Coverage Geographical Coverage Process Automation Intelligent Reporting

9
ACCENTURE HELPED MANKIND CREATE AN INTEGRATED ROADMAP
FOR VALUE DISCOVERY AND VALUE REALIZATION USING S/4HANA

3 months 2 months 10 months

Business Process Business Process

Re-engineering (BPR) Re-engineering (BPR)
S4H aligned business processes Implementation (of non S4 HANA
(O2C, P2P, R2R, Pl2Pr, H2R) initiatives)
S4H Functional
Implementation

IT Strategy
S4H Assessment & Roadmap, Digital IT
Strategy & roadmap

Analytics
Analytics Strategy & Roadmap, Dashboards (COO, Value Realization
CFO, Manufacturing Head and SCM + Procurement
Head)

10
OUR APPROACH FOR BUSINESS PROCESS BLUEPRINTING WAS
ANCHORED AROUND LEVERS OF SIMPLIFICATION, CENTRALIZATION
AND AUTOMATION
Business Process Re-engineering

1 Leverage Industry Best Practices 2 Process Efficiency & Productivity

Sustain LEAP Initiatives
• Assess As-Is processes and Design To-Be best in class • Improve process efficiency through
processes leveraging • Qualitative and Quantitative Analysis
• Industry best practices and benchmarks
• Process streamlining & consolidation
• “S4H Ready” Pharmaceuticals Processes
• Optimize process efficiency through utilization of
• Define KPI’s for each Business Process (to assess technology – S4H Standard Functionalities,
Quality, Cost & Speed) other automation tools

Process Improvement Levers:

Simplification / Elimination Consolidation / Centralization Automation

Elimination of non-value adding, Centralization and consolidation of S4H standard functionalities and
redundant/duplicate activities distributed processes and operations other bolt-on tools and platforms
11
Copyright © 2020 Accenture All rights reserved.
ACCENTURE ALSO SHOWED MANKIND HOW TO MAKE THE
PROGRAM SELF FUNDING WITH LIMITED SEED FUNDING
Illustrative

Benefits outscore
cost, transforming
Benefits program to self-
Savings

start to funding mode

realize

S/4 Strategy and BPR BPR Go-Live S/4HANA Go-Live

Time
Costs

Net Benefit
Gross Benefit
Milestones *Not to scale

12
Copyright © 2018 Accenture All rights reserved.
 WE IDENTIFIED TARGETED INITIATIVES TO HELP MANKIND IMPROVE
PRODUCTIVITY TO DELIVER ESTIMATED P&L IMPACT OF 30-40 CRS
IMPACT
NO FUNCTION IMPACT THEME TYPE BASELINE SCALE VALUE
- Consensus forecasting process design 10-15%
Inventory
1 Planning - Requirement generation process strengthening 13-16 days
optimization
- Scientific inventory norms computation process reduction
Sales loss - Improved availability through sales loss tracking
2 Planning 0.2-0.3%
reduction and improved distribution planning
- Centralize and automate all support activities of
3 Sales Automation incentive computation, T&E mgmt., Field 25-35%
coordination & reporting activities
Sales, Samples cost - Optimize Sample/ Promotion item planning &
4 2-3%
Distribution reduction allocation
- Centralizing all procurement activities
Material cost - Restructuring procurement organization
5 Purchase
reduction - Ensuring control through SAP based PO/SOs
- Category management and price analytics 1%
Material cost
6 Purchase - SAP based Contracting and purchasing
reduction
7 Finance Cost Control - Budgeting led cost monitoring and control 0.2 – 0.3%
Total 30 – 40 Crs

13
Copyright © 2020 Accenture All rights reserved.
ACCENTURE OFFERED A UNIQUE BENEFITS LINKED VARIABLE FEE
CONSTRUCT Illustrative

XXX

14
CASE STUDY- LEADING
CONSUMER GOODS COMPANY
LEADING CONSUMER GOODS COMPANY WITH REVENUE > 1.5 BN
USD
VISION
• Become complete food company
• Entry into new geographies and launch new product categories
• Increase direct reach to retailers

OUR ENGAGEMENT 1st YEAR INITIATIVES

Defined IT Strategy & 3 years tech roadmap with focus on:

Greenfield S4 HANA with additional SAP modules

Procurement transformation by leveraging SAP

Automating Applications Strategy for enabling
Flexibility and
rationalization and digital core & Ariba
Scalability operations, system
driven MIS vendor digitizing core
consolidation functions
DMS & SFA Revamp
KEY CHALLENGES
• Increased complexity in business processes/ high business growth Change Management to increase adoption &
• Disparate Applications sustained benefits
• Low usage of technology with higher manual interventions
• Obsolete Enterprise Structure
KEY FUNCTIONAL LEVERS ON WHICH WE BUILT BUSINESS CASE

RM-PM LIMITED VISIBILITY OF

ELIMINATING MANUAL
PLANNING PROFITABILITY PRODUCTION AND
INTERVENTIONS
WASTAGE

Manual Manual Manual contracts

requirements profitability Limited visibility of management, optimization
generation in reporting at production and opportunities for indirect
absence of MRP- SKU/customer/bra wastage at contract procurement and High FTE
Material nd/region level packers (CPs) leading to based supplier invoice
requirement and costing high wastage management
planning

WAREHOUSE
LACK OF FINANCIAL SYSTEM APPLICATION LANDSCAPE
MANAGEMENT

Lack of warehouse
management system Lack of system driven financial planning Disparate application landscape
resulting in low dispatch and consolidation, equipment supported by multiple vendors such as
rate and accuracy maintenance and planning, capex Lotus notes based workflows, Supplier
projects execution, monitoring and collaboration, RFQ management tools,
control customized applications etc
TYPICAL APPROACH FOR IT STRATEGY, ROADMAP AND BUSINESS
CASE FOR S4HANA
Technology maturity comparative view Functional Maturity head map

Technology Roadmap Application rationalization view

MANAGING PROCESS & TECHNOLOGY INTERVENTIONS TO DRIVE $
SAVINGS
Sl Function Business KPI Technology Benefits UOM
Reduction in loss of production due to stock
Material Resource TPA
1 Procurement Optimised stock levels out
Planning (MRP)
Storage space optimisation
Reduction in loss of production due to
TPA
Plant Maintenance & equipment downtime
Quality % of
Overall Equipment
2 Manufacturing Management Reduction in defectives generated producti
Efficiency (OEE)
modules with on
mobility features Rs. Crs
Reduction in M&R spends
p.a
Project timeliness
Effective Project
3 Capex Project Systems Budgetory controls
management
Physical management of assets
Rs. Crs
Reduction in FG Stock write off
p.a
Enable FMFO & improve Warehouse
4 Replenishment
dispatch rate management Reduction in market returns % of GSV

Optimum FG levels CRSE

Sales order % of
5 Sales Order fulfilment Improved sales by 1%
fulfillment cockpit Sales

Reduction in Negative Gross margin Negative

6 Finance Profitability Improvement COPA through profitability analysis at customer, GM Sale
channel, product & geography levels %
Online information of key Mobile based FIORI
7 All Functions Proactive Decision support
KPIs apps
Total

*Baseline and benefits values removed

QUESTIONS ??