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With the new shipments of S/4HANA, SAP enables multiple Industries that can run along with the digital core. This blog talks about the essential know how for the customers and partners to make them understand how Industries are integrated in S/4HANA and details about Oil and Gas Downstream functionality.

Industry Relevance in S/4HANA:

Industries play a very important role in our existing Business Suite. It was always important for the customers to have an Industry flavor running on top of core. With S/4HANA, it becomes very crucial to retain our huge Industry Customer base and provide partners the insights to the enhancement concept.

Use Cases where core SAP applications need to be extended with Industry Flavor:

Types of Industries in S/4HANA

Industry Solution - Oil & Gas Downstream Details:

Oil & Gas is retained as an Industry Solution with S/4HANA 1610 on premise release.

This means the following:

  • Even in S/4 world, IS-OIL still has a separate Software Component that is installed on top of S4CORE.

  • The Business Function Sets that existed in Business Suite have been retained to activate the Oil functionality. This effectively means to activate IS-OIL, the Business Function Set needs to be activated on an instance.

  • Oil can coexist with other Industry Solutions that have merged into core (like DIMP, CWM, and Retail).

  • The enhancement concept remains more or less the same with BADI definitions, Enhancement Points, Sections etc.

  • Only one Industry Solution in one box: Once IS-OIL is activated on an instance no other Industry (apart from the Retail and Utilities combination as mentioned below ) can be activated on the same box.

  • Oil & Gas downstream customers can use S/4HANA 1610 on premise as an innovation platform.

  • Usage of IS-Oil, IS-Retail and IS-Utilities in S/4HANA 1610 Release

    With the S/4HANA 1610 release, IS-Retail is shipped as part of S/4HANA core, whereas IS-Oil and IS-Utilities are shipped as optional business function sets. The combination IS-Oil and Retail has been tested and released officially. Also the combination of IS-Oil and IS-Utilities has been retained as in the past and released as the joint business function set OIL_&_GAS_WITH_UTILITIES. The combination of all 3 industries has not been tested and released officially. Nevertheless, it is technically possible to activate all 3 industry solutions, but the risk would be at the customer side to test this combination. Upfront we expect only a low risk of issues in activating all 3 industries together.

 SAP S/4HANA simplifies Oil & Gas Downstream processes:

With redesigns in various S/4 Core areas (sFIN and sLog) the IS-OIL downstream modules were also brought in line accordingly for better performance and to use the capability of HANA.

  • The digital core enhances, for example, the throughput in inventory management and valuation, which helps business to run in real-time and fundamentally better their performance.

  • The HPM functionality from IS-OIL Downstream that worked along with the core inventory management was simplified which reduced risk for inconsistencies providing higher inventory reporting compliance.

  • HPM unit of measure group enhancement allows faster adoption to business changes

  • With SAP Fiori and the role-based dashboards for all users, Oil & Gas now provides improved user experience & real-time inventory planning capabilities for schedulers with the following new and enhanced applications:Regional Inventory View,My Nominations,Mass Change Events, Further Innovations in Inventory Planning Workbench

If you are interested in knowing more about  Oil & Gas in S/4HANA, stay tuned for the next blog where we would talk in detail about Pre-Checks handling in IS-OIL and how migration can effectively happen for 1610!!

Happy reading until then 🙂

Blog co-authored by:
Yeshwant More
Sakti Prasada Mishra