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Welcome back to the tenth and last part of the SAP S/4HANA Cloud use case series. Last week we examined an interesting use case in the manufacturing area concerning the information distortion in the supply chain: The Bullwhip Effect. In this blog we will take a look at which of the value levers were mainly supported by the use cases we demonstrated in this series.

Also do take the opportunity to meet us @SAPPHIRENOW. Check out the S/4HANA sessions here.

Understanding the new value levers

In the beginning of this series we already explained the three dimensions of the new value levers and which of the specific value levers belong in which dimension. Let us quickly recap on the dimensions and the value lever, if you are interested in the detailed information check the first three blogs of this series.

In order to move successfully into the digital transformation, it is key to overcome today’s complexities. To solve this, we need to tackle that complexity, onboarding employees and processes, to leverage the digital transformation. The classical enterprise core therefore needs to be redesigned. But how exactly the digital core can contribute?

With the following value levers, we develop a concept, which can reflect the success:

Generally spoken there are three dimensions, that drive every organization, and which every change and project should have positive impact on, in the best case on every of them.

These dimensions are:

  • Efficiency

  • Effectiveness

  • Agility

These dimensions measure the impact of the digitized core on the organization and indicate how much the processes has developed, to the positive or negative.

Keep in mind: many accelerations are not nice to have, they are a direct consequence of a digitally transformed world. An efficient process from the past might be very inefficient going forward.

And technology is enabling us to do things different than in the past. Let me now explain the precise value levers behind these three dimension and clarify how and what they actually leverage in your business.

Value Levers of the use cases

Now when we review the use cases of this series along these dimensions, we can see that we covered value levers from all of the three dimensions and show that with SAP S/4HANA Cloud the complexity of today can easily be tackled. It supports the changing of processes into a standardized concept and changing business models to suit the new demands in the markets.

  1. Efficiency

The clearing of bank statements with receivables is either fully automatized with no human intervention or the manual execution is accelerated drastically by giving the AR staff a few clearing proposals, so that they can decide within seconds for the right one.

Enabling the project team to have a one-stop platform to keep a project related information and stay in constant communication, most definitely leads to an acceleration of the project execution, so the efficiency.

  1. Effectiveness

With event-based revenue recognition, the process intelligence is considerably increased, as we deliver real-time information to the project manager and controller, as well as the signal-to-action, as the project manager can react much quicker now.

We can signal action in time based on real time data enabling different functions to get full insight and take decisions to fix issues. Users from inventory managers to controllers can now act immediately when they detect exceptions and enable the company to effectively manufacture while keeping costs under control.

  1. Agility

Especially in this 2-tier ERP use case it is obvious, that when working with a flexible and easy to use system in a subsidiary, it increases the process flexibility, the organizational agility and even the assimilation of process innovations.

The main aspects for the value lever in this use case are quickly innovate and evolve. With the enablement of immediate production of individualized products, it is ensured that high service levels at lowest possible inventory along all BoM levels and reaches better quality and smoothen production flow by prevention of defects

With this we close the Cloud use case series, but don’t worry the next series is already in the making. Within the next weeks we will begin examining more use cases, this time in the context of 2 tier. To get you started on this topic you can already refer to the 2-tier use case we illustrated in this series, which you can find here:

Another opportunity to get even more insights into the SAP S/4HANA Cloud is a soon upcoming new openSAP course “How to best use the SAP S/4HANA Cloud”. It will cover the solution, demonstrate some use cases along the business priorities, analyze the cross topics and illustrate the deployment. So keep a look out on https://open.sap.com/courses to register and broaden your knowledge about SAP S/4HANA Cloud.

And check here the collection of the series


For more information on SAP S/4HANA Cloud, check out the following links:

And follow us via @SAP and #S4HANA, or myself via @SDenecken to stay on top of the latest…