Expert Talk (Summary): Service Management in SAP S/4HANA Cloud Private Edition

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In a recent Expert Talk, SAP’s service experts and product managers, Yang Li and @GertTackaert , shared exciting updates about service capabilities within SAP S/4HANA Cloud Private Edition and their product road map. Here’s a quick overview of their insights. You can watch the full video here.

Dimensions of Service Processes

We've spoken with many customers from different geographies and industries, and understand that service processes can vary greatly. We find it useful to see them in terms of the following dimensions:

1. Where (on-site, field service vs. in-house, depot service),
2. How (ad-hoc vs. recurring)
3. Who (own technicians vs. subcontractors).

Key Themes from Customer

Despite the differences, service leaders consistently focus on three main themes:

1. Operational Performance and Efficiency: Delivering more with existing resources while keeping customers happy.
2. Automation and Transparency: Automating tasks to handle complexity and increase volume, ensuring clear visibility of the entire service process.
3. Business Insight and Compliance: Adapting to changing business needs and ensuring both operational and financial compliance, especially in a global context.

To help service leaders tackle these challenges, SAP S/4HANA Cloud Private Edition offers capabilities that cover all service dimensions for different combinations, tailored to customers' needs.

Service as a Revenue Enabler

In the past 10-15 years, the role of services has shifted from cost centers to revenue enablers. Some companies now even drive their revenues almost exclusively through service models like subscriptions or pay-per-use. Efficient service processes are now critical to facing today’s business challenges. Our new 2023 release from October last year is a milestone for several reasons:

• Consistent User Experience: An intuitive, end-to-end experience.
• Real-Time Financial Reporting: Features like service margin analysis and revenue recognition.
• New Business Models: Foundations for models like XaaS (“everything-as-a-service”) and subscription-based services.

Service Scenario Highlights

SAP S/4HANA supports various combinations of "Who," "Where," and "How" in service processes. Here are two key scenarios.

1. Field Service:

• Steps: Customer request; quote creation; scheduling and dispatching technicians; confirmation of time, parts, and expenses; review; billing; and financial reporting.

• Innovations: Intercompany Service Execution and Service with Advanced Execution, offering flexibility in both commercial and operational aspects of service delivery.

2. In-House Service:

• Steps: Involves logistics for incoming/outgoing items; tracking internal movements during repairs; and billing.

• Innovations: Enhanced process visibility and billable diagnosis, allowing companies to charge for inspection work to provide more accurate report.

You can also see a labs preview of a planned feature, which will combine in-house and field service processes into a single service flow.

 

Future Road Map

Looking ahead, our road map for Service in SAP S/4HANA Cloud Private Edition includes:

• Commercial Excellence and Financial Insight: Flexible service sales and consistent financial reporting.
• Operational Performance: Efficient management of logistics and complex tasks.
• Circular Economy Support: Enabling services like remanufacturing and refurbishment.

Future updates is also planned to infuse business AI to further optimize service execution processes.

To Learn More

To learn more about service capabilities and SAP S/4HANA Cloud Private Edition in general, be sure to visit topic pages: SAP S/4HANA Service and SAP S/4HANA Cloud Private Edition.