SAP S/4HANA Cloud, Private Edition 2023 Product Launch
I am excited to share that the 2023 release of SAP S/4HANA Cloud, private edition is here – the most intelligent and comprehensive cloud ERP to date. I have the pleasure to walk you through the key aspects that bring intelligence to our digital core along with some of the highlights of the release.
Recently, we have talked a lot about innovation shipment in the cloud. This means:
A) The private cloud is here to stay, and you benefit from broad investments,
B) It is the major product for customers who prefer to do a conversion into the cloud, SAP S/4HANA Cloud, private edition offers you 3 main routes to get into.
- A green field fresh start,
- A partial conversion,
- And a brown field conversion from your current ERP base.
And of course, it offers you an upgrade if you are already on SAP S/4HANA Cloud, private edition.
C) Whatever you decide to do: Keep our clean core strategy in mind.
Our new release and maintenance strategy for SAP S/4HANA Cloud, private edition was communicated recently: This includes a new planning of feature pack stacks over longer cycles. This means customers have much better possibility and flexibility to always stay current, and more time to adopt new innovation. The major releases are coming in 2-year cycles.
Now, let’s have a look at the new 2023 release and what it contains.
To get an overview of my personal highlights, you are welcome to share a few minutes with me and watch my highlight video below.
Foundation of the Digital Core
Before jumping right into the highlights of this year’s SAP S/4HANA Cloud, private edition release, let me recap the four aspects that make up the foundation of the digital core:
- An architecture delivering a scalable foundation to transact at the highest possible automation,
- A system of intelligence supporting and steering the business using embedded analytics, simulation, prediction, and decision support to run live businesses,
- An end-to-end experience that can be implemented, consumed, and adapted faster,
- And an open architecture to allow connectivity and adoption of micro-services.
What Makes the System Intelligent?
We leverage advanced technologies such as analytics, artificial intelligence (AI), machine learning, and accelerate Internet of Things (IoT) connectivity to automate tasks, provide insights, predict future trends, and support decision-making.
These technologies lay the foundation for the digital core to process and analyze vast amounts of data in real-time, providing crucial and timely business intelligence. For example, AI and machine learning algorithms can identify patterns and trends, spot anomalies, predict outcomes and even make decisions based on these insights. IoT connectors can link various devices and systems to generate, gather, and share data.
To finish, an intelligent digital core enhances user experience with intuitive interfaces, personalized content, and predictive recommendations. It can also integrate with external systems and platforms to extend its capabilities and increase business value.
Highlights of the SAP S/4HANA Cloud, Private Edition 2023 Release Launch
With the 2023 release of SAP S/4HANA Cloud, private edition, we offer a whole new set of innovations. Let me walk you through what this release has in store for you.
Artificial Intelligence (AI) has become an essential asset for any business both now and in the future. We at SAP make sure we stay on top of the latest AI technologies and benefit from their ever-advancing capabilities for our intelligent enterprise. The use of AI enables businesses to streamline their processes, enhance customer experiences, reduce errors, and ultimately, drive growth and profitability.
Late payments can have several negative impacts on a company, unpredictable cash flow to be avoided. Late payments can lead to disruptions, resulting in difficulties to meet own financial obligations.
Now with this 2023 release, we introduce a machine-learning scenario for intelligent collections with a new predictive scenario for risk of late payment. This new predefined predictive scenario allows you to enable your users to predict the risk of late payment for invoices. After enabling the scenario, the ‘Risk of Late Payment’ field supports collection specialists in their daily routine. The prediction of the risk of late payment is based on historical data and by using Intelligent Scenario Lifecycle Management.
Figure 2: Encourage collections specialists to focus on documents with high risk of late payment.
Note: Before you can use the ‘Risk of Late Payment’ field productively, an analytics specialist must enable the related scenario. More information: Predictive Scenario for Risk of Late Payment
Related to the previous innovation, we updated the intelligent scenario “risk of late payment” (FI-CA) for the public sector with this release.
The existing risk of late payment intelligent scenario utilizes machine learning (ML) in SAP S/4HANA Cloud, private edition for behavioral insights to help identify potential late payers, so they can be targeted with personalized collection strategies and steps in the following ways:
- Additional flexibility to allow the model to integrate to contract accounting FI-CA) processes and data structures,
- Additions to the predefined event catalog based on FI-CA processes and data,
- Additions to the predefined ML feature catalog based on FI-CA processes and data.
Data Insights in SAP S/4HANA Cloud, public edition refers to the analytical and predictive capabilities of the software that provide valuable insights into business operations. These insights offer companies a better understanding of their financial performance, customer behaviors, market trends, operational effectiveness, and more.
Sourcing and Procurement
Transparency in sourcing provided by comprehensive data facilitate informed decision-making. In the same way, you can identify bottlenecks, redundancies, and inefficiencies in the sourcing process.
The latest innovations of SAP S/4HANA Cloud, private edition aim to assist sourcing managers in coordinating and managing multiple sourcing projects. The new features allow sourcing managers to collaborate with stakeholders throughout the sourcing process. They can now easily track and review various sourcing projects and associated quotations.
- The overview screen provides a comprehensive view of the sourcing projects, including their status, manufacturing plant, and procurement projects.
- Additionally, the system displays information such as the
- Total target amount of sourcing projects by material group
- Supplier quotations by status
- Quotations by supplier and material group
- Pending quotations
- Sourcing projects by submission deadline and target amount
- Planned spend by material group
These enhancements streamline the sourcing process and provide sourcing managers with valuable insights to make informed decisions.
Master Data Management
This new release provides a visualization of master data governance (MDG) processes in cloud-ready mode to help users gain a deeper insight into the processing status of these master data processes.
With this 2023 release, you can now:
- Display past and current process steps and workflow tasks in graphical views with processing time and workflow recipient details,
- Visualize federated MDG process for cross-system process monitoring,
- Navigate to the central visualization from any MDG system.
Figure 4: Extend the effectiveness of master data stewards and specialists with reduced effort in providing high-quality master data.
Note 1: The SAP Fiori apps ‘Process Path Overview and Process Path’ for cloud-ready mode in MDG is a BTP-based SaaS cloud app from SAP Build Process Automation with delivered MDG content.
Note 2: Find more details about cloud-ready mode in MDG in the information bulletin.
With the new release, you can analyze and manage the utilities clarification cases in business process exception management.
For this, we bring new features:
- A new CDS cube and query focused on Business Process Exception Management (BPEM) enable you to analyze and monitor the clarification cases that, for example, have not yet been solved and need to be processed. Several optional parameters allow you to refine your search and obtain BPEM-related KPIs and results,
- SAP Fiori launchpad content for the SAP Fiori role ‘Operations Specialist’ (utilities),
- A new SAP Fiori app ‘Manage Clarification Cases (F7256)’ enables you to display a list of BPEM (Business Process Exception Management) clarification cases in utilities meter-to-cash processes, to access detailed information related to clarification cases, and apply actions. The app provides forward navigation to the transaction EMMAC3 (‘Display Clarification Case’), where further detailed information and BPEM features are available.
- A new SAP Fiori app ‘Clarification Case Overview (F7255)’ enables you to obtain a complete picture of the existing BPEM (Business Process Exception Management) clarification cases in the utilities meter-to-cash processes. The app provides BPEM-related KPIs by counting the clarification cases for different criteria, such as the status, priority, case category, business process and business process area, and presenting the aggregated numbers on different cards and donut charts. This provides you with a comprehensive overview of the selected business exceptions.
Figure 5: Increase user productivity with a comprehensive and intuitive app for analyzing clarification cases.
Application Development and Integration
In this area, you can monitor the life cycle of situations created by the extended framework of Situation Handling with the ‘Monitor Situations – Extended’ app. You see the occurrence, the status, and related business objects for object-based and message-based situations.
The ‘Manage Situation Types – Extended’ app has been enhanced in this 2023 release with the ‘Monitor Instances’ option. When you enable this option while creating or editing situation types, situation instances are tracked, and you can monitor them in the ‘Manage Situation Types – Extended’ app.
A new CDS cube and query focused on Business Process Exception Management (BPEM) enable you to analyze and monitor the clarification cases that, for example, have not yet been solved and need to be processed. Several optional parameters allow you to refine your search and obtain BPEM-related KPIs and results.
Figure 6: Analyze the lifecycles of situations efficiently, from creation to closure.
You can now suspend the product valuation initiated by a refund in the customer returns process. Suspending the product valuation allows customers to keep the returned product while the valuation process is on hold. This provides flexibility and convenience, as customers can continue using the product while waiting for a resolution. This can lead to increased customer loyalty and repeat business. Additionally, addressing customer concerns and resolving issues promptly and effectively can help mitigate negative reviews or word-of-mouth publicity, which can impact a company’s reputation. In the past design of customer return, when you refunded a customer, the returned product was moved to the valuated returns stock, and you take over the product ownership from the customer. However, there may be cases where you want to refund the customer but do not want the refund to signal the decision on the ownership because the product inspection has not yet been completed.
For example, organizations instantly want to send a replacement to their customers during return order creation (even before the returned product is back), so that their customers can proceed with production, or other companies like to immediately send 100% credit note to their customers (assuming ‘customer is always right’). In this case, the result of the inspection can be bypassed to increase processing speed.
Figure 7: Enable customer returns with early refunds, without the valuation of corresponding returned goods during the posting of goods receipts.
We have now the continuous provisioning of listed substances through a regulatory content service. Listed substances (unique CAS numbers) are important in product compliance, e.g., for the identification as CAS numbers provide a unique identifier for each chemical substance. This helps to avoid confusion or ambiguity when referring to specific substances. Different substances can have similar or even identical names, but they will have distinct CAS numbers, allowing for accurate identification. With this continuous provisioning, product compliance shall consume and load listed substances, listed substance groups and listed substance conditions from regulatory content service as preferred source. Only in case regulatory content service isn’t yet configured, listed substances, groups, and conditions shall be loaded from the local MIME repository of your system. This ensures that all compositions are made up of the most current and accurate substances, which are the foundation of automated compliance checks within the system.
Figure 8: Stay up to date with the latest listed substances and listed substance group assignments.
Connectivity is game-changer and plays a critical role in process optimization.
Inventory Management and Physical Inventory
With this new 2023 release, we support bar code scanning in the following SAP Fiori apps:
- Stock – Single Material
- Transfer Stock – In Plant
- Post Goods Receipt for Purchasing Document
- Post Goods Receipt for Production Order
- Post Goods Receipt for Inbound Delivery
- Post Goods Receipt for Process Order
The app supports barcode scanning of reference documents and serial numbers with internal and external scanner devices. With this scan option, you can collect data quickly and reliably for goods receipt postings.
- On the main and detail screens, there is a new button that gives you direct access to the scan function.
- On the main screen, you can scan a document ID based on your scanner settings (device camera, external scanner, or manual keyboard entry).
- On the detail screen, you can scan serial numbers. The app automatically sorts all scanned serial numbers in a table. Note that the app assumes that anything that is scanned on the detail page is a serial number.
Figure 9: Increases process coverage by enhancing apps to better support end users in their day-to-day operations.
Extended Warehouse Management (EWM)
With the enabling Kanban for decentralized SAP EWM, you can use Kanban to trigger replenishment requests from your warehouse and create warehouse tasks to move the products from a source storage location managed by decentralized Extended Warehouse Management (EWM) to a production supply area (PSA).
With this release, we introduce a simplified Kanban framework without deliveries for decentralized extended warehouse management in SAP S/4HANA Cloud, private edition.
Figure 10: Increases efficiency in production and warehouse operations by eliminating process steps.
Digital-Age User Experience
Digital-age user experience refers to the design and implementation of digital interfaces that cater to modern users’ expectations and behaviors. As technology evolves and becomes more integrated into our daily lives, users expect a seamless, intuitive, and users value interfaces that are easy to navigate and use.
SAP Fiori Apps
In this release, we offer various new SAP Fiori apps in different areas. Let me just mention some of them:
- New SAP Fiori app for capacity evaluation in manufacturing: With this app, you can better visualize the capacity situation of work centers within a plant. You can group work centers based on work center group and visualize the utilization on the group level. The visualization and analytical capabilities help in understanding and managing the impact of capacity situation. This helps the production planner to plan, increase efficiency, and run better.
Figure 11: Provide flexible options for capacity analysis to better suit the users’ area of interest.
- New SAP Fiori app to manage production supply areas: This new app helps you to manage your production supply areas. You can personalize the displayed list of production supply areas according to your use cases. You can navigate to further details including in which contexts production supply areas are being used. You use this function to define the production supply areas that you need for Kanban.
Figure 12: Increase efficiency in setting up and maintaining your Kanban and production master data.
- New SAP Fiori app for cost distribution in the defense & security industry: You can use the ‘Cost Distribution’ SAP Fiori app in SAP Project Manufacturing Management and Optimization (PMMO), which provides you with a user interface (UI) to analyze cost distribution data resulting from the distribution program run and to check for accurate processing of cost distribution details.
Figure 13: Help reduce overall processing time and cost, support auditing efforts,
and improve invoice accuracy.
- New SAP Fiori app for making change requests to update freight order charges in transportation management: With this, you as a shipper can enable your carriers to use the new SAP Fiori app ‘Manage Charges for Freight Orders’ to view, update, and approve charges for freight orders.
- New SAP Fiori app for creation and editing of credit memo requests in sales: With the ‘Manage Credit Memo Requests – Version 2’ app, you can create credit memo requests without referencing a document. Also, you can display and edit all types of credit memo requests in your system and monitor their statuses and progress. In addition, you can extend this app by adding custom fields or additional standard fields to this app.
Sustainability drives finding a balance between the environment, society, and the economy to create a better future for us and future generations. It involves responsible decision-making, resource conservation, social equity, and long-term thinking.
Sourcing and Procurement
With this release, you now can request carbon footprint data from suppliers to make carbon conscious award decision.
This feature enables you to request data about the carbon footprint of items from suppliers:
- You can decide for each item in your sourcing project whether you would like to collect carbon footprint data for that item,
- Suppliers can then provide this information in their supplier quotations,
- You can review the carbon footprint information shared by suppliers in the quotation comparison application.
Figure 14: Gain additional insights into the cost drivers of material being sourced.
Environment, Health, and Safety
Sustainability incorporates the social impact; EHS helps companies keep track of their social impact, such as ensuring fair labor practices and assessing the impact of their operations on local communities.
With the 2023 release, we launch a new application for processing incidents. With this new SAP Fiori app, you can manage incidents and the processes related to them, such as defining tasks, conducting investigations, and reporting to legal authorities. You can review and complete the information in incident records and track the processing status of incidents.
Figure 15: Enable an intuitive and more comprehensive way of organizing incident data.
RISE with SAP
Here, I’d like to talk about how you can transition your current ERP data and processes to the cloud with less risk and without compromise to run an intelligent enterprise.
RISE with SAP is a holistic, subscription-based offering that provides customers with all the tools needed to develop business operations quickly and efficiently towards intelligent enterprises. It is essentially an offering that integrates SAP’s top-performing applications and services into a single bundle, including SAP S/4HANA Cloud, SAP Cloud Platform, SAP Business Technology Platform, and other tools.
The larger RISE with SAP context is a facilitator of your business transformation. The aim is to support and simplify next to other elements the move from to a higher level. It’s not just about digital transformation but integrating advanced technology into all aspects of a business, including e-commerce, customer relationship management, supply chain management, and more.
Figure 16: Become an intelligent, sustainable enterprise in the cloud.
On an ending note, RISE with SAP provides a broader offering that allows organizations to transform at their own pace, gain instant value, and leverage greater flexibility in their business operations. For more information about RISE with SAP, have a look at the replay of our virtual event “Rise into the Future” here.
To get further insights into our SAP S/4HANA Cloud, private edition 2023 release, stay tuned for Yannick Peterschmitt’s deep dive of the release highlights and read his upcoming blog post.
Inside SAP S/4HANA Podcast
As always, I would like to encourage you to subscribe to our podcast “Inside SAP S/4HANA”. This podcast leverages the unique knowledge and expertise of SAP S/4HANA product experts, partners and customers to address objects of interest by sharing product insights and project best practice. There is no customer success without product success and project success; we share all ingredients with you to get to the next level and make your SAP S/4HANA Cloud project a success. Subscribe now and benefit from the shared knowledge.
openSAP Microlearnings for SAP S/4HANA Cloud
Our openSAP microlearnings for SAP S/4HANA Cloud offer an exciting new learning opportunity. What began with a small batch of 20 videos, has now become a channel with more than 50 microlearnings that have generated over 20,000 views since then. Today we cover multiple lines of business such as finance, manufacturing, and supply chain, and key technology topics like Master Data Management, extensibility, SAP User Experience, and upgrade management. We are continuously adding new microlearnings to the SAP S/4HANA Cloud channel, so make sure you check them out.
Your Voice Matters!
If you want to learn more and actively engage with SAP subject matter experts on SAP S/4HANA Cloud, private edition, join our SAP S/4HANA Cloud, private edition community–now fully integrated with SAP Community. The community brings together customers, partners, and SAP experts and has a clear mission: deliver an interactive community to engage with one another about best practices and product solutions. We invite you to explore the SAP S/4HANA Cloud, private edition community ‘one-stop shop’ as the central place for all resources, tools, content questions, answers and connect with experts to guide you through your journey to SAP S/4HANA Cloud, private edition.
Other SAP S/4HANA Cloud Enablement Assets
SAP S/4HANA Cloud is the foundation of the intelligent enterprise and is an innovative, robust, and scalable ERP. We at Cloud ERP Product Success and Cloud Co-Innovation offer a service as versatile as our product itself. Check out the numerous offerings our Enablement team has created for you below:
- SAP S/4HANA Cloud, private edition release info: sap.com/s4hana
- SAP S/4HANA Cloud, private edition Community here
- SAP S/4HANA PSCC Digital Enablement Wheel here
- Inside SAP S/4HANA Podcast here
- Best practices for SAP S/4HANA Cloud, private edition here
- Help Portal Product Page here
- Feature Scope Description here
- What’s New here