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DhananjaySingh
Explorer
7,382
There are many queries floating on the net about S/4HANA modules for IS-Oil in upstream, midstream, and downstream. This blog will explain the S/4HANA-based Oil, Gas and Energy sub-modules now referred to as process components available within n S/4HANA

As you may be aware, in the S/4HANA roadmap, the SAP journey for the industry of O&G and energy is moving towards process areas or lines of business instead of ECC-based modules (SD, MM, TSW etc).

So let me brief you on the transformation happening from traditional SAP ECC to the S/4HANA Oil, Gas, and Energy offering. SAP is moving its paradigm from IS-Oil and Gas functionality to IS-Oil, Gas, & Energy so all these processes and modules now come with an add-on energy component in the offering. Activation of those will be optional as per your customer's requirements. Below is a picture depicting the SAP offerings transformation from IS-Oil & Gas to IS-Oil, Gas, & Energy.


Digital Transformation of SAP Oil, Gas and Energy Offerings


SAP ECC core modules have been restructured in SAP S/4HANA as lines of business. The following are the main process areas or LoBs available in the S/4HANA IS-Oil, Gas and Energy system:

Upstream Business - Exploration, Development, and Production: S/4HANA Upstream oil and gas solutions include managing the convergence of hydrocarbon production, maintenance, engineering, and financials, optimizing assets, and collaborating with internal and external entities. So below are the S/4HANA solution and sub-modules that cater to upstream business:

  • Capital Project Management

  • Exploration and Development

  • Oil and Gas Production

  • Oil and Gas Accounting

  • Field Logistics


Midstream Business: Trading, Storage, and Transport: S/4HANA Midstream solutions include storage, trading, and transport, as well as unpredictable changes in supply and demand. Midstream processes are tightly integrated with both upstream and downstream processes. Below are the S/4HANA solution and sub-modules that cater to midstream business:

  • Trading and Risk Management

  • Supply and Primary Distribution

  • Storage and Terminal Management

  • Vessel and Fleet Management

  • Secondary Distribution

  • Energy Transmission


Upstream/Midstream Business: Asset Management and Operations: S/4HANA Upstream and midstream uses Asset Management and Operations solutions, SAP solutions contain process areas or sub-modules of manufacturing planning, field services, maintenance operations, etc. Below are the S/4HANA Asset Management and Operation solution/sub-module that Upstream - Midstream business:

  • Asset Management and Operations

  • Spare Parts and Materials Management

  • Shutdown, Turnaround, and Outages

  • Industrial Insights

  • Manufacturing Planning and Operations

  • Manufacturing Execution (Industry 4.0)

  • Field Service Management


Upstream/Midstream Business - Sustainability: Sustainability is applicable to both Upstream and Midstream businesses and includes sustainable energy products and services, reliable financial performance, as well as environmental, social, and governance (ESG) performance. Below are the S/4HANA sustainability solution/sub-module that cater to Upstream and Midstream business:

  • Corporate Sustainability and E-Mobility

  • Environmental Footprint Management

  • Environment, Health, and Safety

  • Quality Management

  • Holistic Steering and Reporting


 Downstream Business - Energy Conversion: Since Energy solution is now part of the IS-Oil offering, SAP included the energy solution as part of the downstream solution for IS-Oil, Gas and Energy. Activation and licencing of this solution are based on customer requirements. This solution provides you with visibility and insight into energy conversion and manufacturing processes. Solutions or sub-modules for downstream oil, gas, and energy from SAP help you get the most from your downstream operations. Below are the S/4HANA Solution/sub-module caters energy downstream businesses:

  • Refining and Lubricants

  • Petrochemicals

  • Alternative Fuels

  • Alternative Energy


Downstream Business - Sales, Services, and Marketing: S/4HANA Downstream solutions include customer buying experience, customer feedback, retail, institutional, and B2B sales. Below are the S/4HANA Solution/sub-module that cater to downstream solutions for Sales, Services, and Marketing:

  • Brand value/management and Merchandising

  • Fuels, LNG, Chemicals and Lubricants Sales

  • Service Station and Convenience Retailing

  • Industrial Marketing

  • Sales Performance Management

  • Quote to Cash for Configurable Products and Solutions

  • Energy Sales


Upstream/Midstream/Downstream Business - Finance: S/4HANA core finance is used across all three Upstream, Midstream and Downstream businesses. Below are the sub-modules/ S/4HANA solution used in core finance within Oil, Gas and Energy sector:

  • Invoice-to-Pay

  • Invoice-to-Cash

  • Financial Planning and Analysis

  • Record-to-Report

  • Treasury Management


Upstream/Midstream/Downstream Business- Human Resources: S/4HANA core HR used across all three Upstream, Midstream and Downstream businesses. Below are the sub-modules/ S/4HANA solution used in the core HR within Oil, Gas and Energy sector:

  • Payroll and Time & Attendance Management

  • Talent Management and Learning

  • Talent Acquisition

  • Workforce Analytics

  • Workforce Experience Management


Upstream/Midstream/Downstream Business- Procurement: S/4HANA core procurement is used across all three Upstream, Midstream and Downstream businesses. Below are the sub-modules/ S/4HANA solution used in the core Procurement within Oil, Gas and Energy sector:

  • Plan and Forecast

  • Central Procurement

  • Supplier and Risk Management

  • Buy and Deliver Direct Goods

  • Invoice and Pay

  • Procurement Analytics


Now I will explain how these new offerings (not all process) mapped between traditional SAP ECC and recent offering of S/4HANA Oil, Gas and Energy. Which gives you clarity about the mapping between S/4HANA and ECC. However, all these skills require some knowledge of the business processes of Oil, Gas and Energy industry. Though you are using the same component of S/4HANA, you need to set it up in a different way for Oil, Gas and Energy sectors. Below is the mapping of some of the frequent used SAP Modules between ECC and S/4HANA (some of the functionality available on-cloud version only) for your better understanding:


Mapping of Key Oil and Gas Modules between SAP ECC and S/4HANA


This blog post will help you identify SAP products required for your O&G and energy organizations. It also helps in the digital transformation using S/4HANA's recent innovations in the oil, gas, and energy business. It helps consulting companies identify the right resources to implement the recently introduced S/4HANA-based functionality.

 
5 Comments
pma
Explorer
Dhananjay,

Thanks for this post, the explanation is really clear, it is so helpful to understand the way SAP is moving its paradigm from ECC IS-Oil and Gas functionality to S/4HANA IS-Oil, Gas and Energy.

Excellent work!

Best regards,
Paulo_Vitoriano
Active Contributor

Dhananjay,

Thank you for the post, do you mind providing a link to PSA/PSC documentation in S/4? The reason I am asking is because I do not think that anything exist in the S/4 at the moment.  It might be in a pipeline, but without any dates.

Thank you,

Paulo

alvarointcom
Explorer
Dhananjay,

Thanks for going deeper into the S/4HANA ecosystem for the O&G. I'd like also to highlight other technologies from the SAP Industry Cloud as the People logistics tool for UPSTREAM, the BlueOpex, which allows to plan the crewing for offshore facilities and integrated with the S/4HANA. These solutions integrated are going to be a game changer for those O&G companies that are on the way to migrating the ECC to the S/4 HANA CLOUD.

Alvaro Antunes

 
ricardo_tadashi1
Newcomer
It was incredibly valuable, and I truly appreciate your effort in providing such valuable information.

Thank you for sharing your knowledge.

Tadashi
Bushair
Explorer
0 Kudos
Thank you for the blog. Very useful indeed.
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