SAP Simple Finance

... Foreword ... 15



... Preface ... 17



... Acknowledgments ... 25



1 ... Introduction ... 27



1.1 ... Market Trends ... 27

1.2 ... Leadership Trends ... 29

1.3 ... Technology Trends ... 31

1.4 ... Introducing SAP Simple Finance ... 32



Part I ... Exploring the SAP Simple Finance Model ... 63



2 ... In-Memory Technology and SAP HANA ... 65



2.1 ... Keeping Data in Memory ... 67

2.2 ... Columnar Data Organization ... 69

2.3 ... Data Encoding and Compression ... 72

2.4 ... Parallel Execution ... 74

2.5 ... Delta Store and Merge ... 77



3 ... Removal of Redundancy ... 81



3.1 ... Benefits of a Redundancy-Free System ... 82

3.2 ... In-Memory Technology Removes Redundancy ... 86

3.3 ... Simplifying the Core Data Model ... 89

3.4 ... Immediate Benefits of the New Data Model ... 92



4 ... Nondisruptive Innovation ... 97



4.1 ... Compatible Refactoring ... 98

4.2 ... Transitioning to SAP Simple Finance ... 101



5 ... Unlimited Flexibility Based on Line Items ... 105



5.1 ... Gaining Unparalleled Insights ... 105

5.2 ... Removing Predefined Aggregates ... 107

5.3 ... Deciding without Information Loss ... 110

5.4 ... Optimizing Operations with Big Data ... 112

5.5 ... Innovating with Line Item Granularity ... 115



6 ... Finance in Real Time ... 117



6.1 ... Accepting the Limits of Retroactive Analysis ... 118

6.2 ... Benefitting from Real-Time Finance ... 120

6.3 ... Identifying Real-Time Finance Patterns ... 126

6.4 ... Becoming a Real-Time Finance Company ... 127



7 ... Data Aging ... 131



7.1 ... Information Lifecycle ... 131

7.2 ... Traditional Approach: Archiving ... 133

7.3 ... Modern Approach: Data Aging ... 134

7.4 ... Vision ... 138



Part II ... Using SAP Simple Finance ... 141



8 ... Building Blocks of SAP Simple Finance ... 143



8.1 ... Seeing the Big Picture ... 143

8.2 ... Reloading SAP ERP Financials Functionality ... 146

8.3 ... New Applications in SAP Simple Finance ... 151



9 ... Single Source of Truth: Universal Journal ... 155



9.1 ... Mastering Business Challenges without SAP HANA ... 155

9.2 ... The New SAP HANA-Based Architecture ... 159

9.3 ... Immediate Benefits of the New Model ... 164

9.4 ... Building on Top of the Universal Journal ... 170



10 ... Flexible Reporting ... 177



10.1 ... The Challenge of Flexible Operational Reporting Needs ... 178

10.2 ... Addressing the Challenges Using SAP Simple Finance ... 181

10.3 ... Conceptual Advances in Reporting ... 185

10.4 ... Advances for End Users ... 187



11 ... Flexible Analytics and SAP HANA Live ... 191



11.1 ... Replacing Complex Analytics with Simplicity ... 192

11.2 ... SAP HANA Live Paradigms ... 193

11.3 ... SAP HANA Live Architecture ... 196

11.4 ... Unmatched Operational Intelligence ... 200



12 ... SAP Simple Finance Applications ... 203



12.1 ... Business Cockpits for Business People ... 203

12.2 ... Financials Operations ... 210

12.3 ... Ariba Networks Integration ... 217

12.4 ... Cash Management ... 221

12.5 ... Integrated Business Planning for Finance ... 232

12.6 ... Profitability ... 241

12.7 ... Financial Closing and Consolidation ... 247

12.8 ... Revenue Accounting ... 254

12.9 ... Real-Time Governance and Compliance ... 259



13 ... Revamping the User Experience with SAP Fiori Apps ... 267



13.1 ... The Design Philosophy of SAP Fiori ... 268

13.2 ... Developing Intuitive Products ... 269

13.3 ... SAP Fiori Design Principles in SAP Simple Finance ... 270

13.4 ... SAP Fiori Application Framework and Finance ... 274

13.5 ... Extending SAP Fiori ... 278



Part III ... Running SAP Simple Finance ... 283



14 ... Deploying SAP Simple Finance ... 285



14.1 ... The Classic On-Premise Deployment ... 286

14.2 ... SAP HANA Enterprise Cloud Deployment ... 290



15 ... Landscape Consolidation with Central Finance ... 299



15.1 ... Harmonization and Standardization ... 299

15.2 ... Central Journal Principles and Capabilities ... 303

15.3 ... From Central Journal to Central Finance ... 308

15.4 ... Central Finance in the Cloud ... 311



16 ... Adoption Scenarios ... 313



16.1 ... Greenfield vs. Brownfield Approach ... 314

16.2 ... SAP Simple Finance in SAP Business Suite on SAP HANA ... 316

16.3 ... Central Finance and Central Journal ... 318



17 ... Success Story: SAP SE Runs SAP Simple Finance ... 323



17.1 ... Defining a Finance Vision ... 323

17.2 ... Moving to SAP Simple Finance ... 326

17.3 ... Reaping the Benefits ... 333

17.4 ... Anticipating the Next Steps ... 336

17.5 ... Conclusion ... 336



18 ... Partner Ecosystem ... 339



18.1 ... Navigating the Partner Model ... 339

18.2 ... Partnerships around SAP Simple Finance ... 341

18.3 ... SAP Simple Finance Partnerships in the Future ... 348



Part IV ... Moving Forward with SAP Simple Finance ... 351



19 ... Design Thinking ... 353



19.1 ... The Foundation of Design Thinking ... 354

19.2 ... Impacts on a Business Process Landscape ... 358

19.3 ... Identify and Define Changes ... 359

19.4 ... Set Up a Design Thinking Workshop ... 363

19.5 ... Opportunities in the Business Process Landscape ... 365



20 ... The Future of Finance ... 369



20.1 ... Simulation and Predictive Analysis ... 369

20.2 ... A Proactive Finance Solution ... 372



... Appendices ... 377



A ... Changes to the Data Model ... 379



B ... Additional Information ... 381



... The Authors ... 389



... Index ... 401