Short Presentation Title unification in business units, unification of chart of accounts, clean-up the master data IT landscape optimisation System consolidation and landscape harmonization

Changing of Federal Law "On personal data" in Russia

June 10, 2015

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 2 Public

AGENDA

■ Overall SAP view on Personal Data Law

■ SAP Landscape Transformation Solutions and Services

■ Cases for SAP HCM and SAP SF landscape transformation

■ SAP HANA Enterprise Cloud in SAP CIS Data Center Moscow

■ Q&A


What is new in Personal Data Law

■ In July 2014 Russian authorities have enacted amendments to both Information

Law and Personal Data (the “Amendments”) which has a specific requirement

that effective from September 1, 2015 “databases which are used for gathering,

recording, systemizing, accumulation, storage, updating and uploading of

personal data of the Russian citizens” shall be located in Russia. Under the

Amendments, “an operator gathering personal data, including by Internet, must

ensure recording, systemizing, accumulation, storage, updating and uploading of

personal data of the Russian citizens with the databases located on the territory

of the Russian Federation”.

Since definition of personal data (“PD”) under the Federal Law “On Personal Data”

(“PD Law”) is very broad as it includes any data which directly or indirectly relates

to and/or identifies such an individual, it may be concluded that at this stage (i.e.,

without any clear guidance from the authority restricting or selecting particular

personal data as falling out of scope of PD) any and all employee-related HR

records are qualified as PD


Overall SAP view on Personal Data Law

■ Topic of Personal Data is relevant not only for Russia, but also for other countries

for example Great China, Brazil etc. Means this is a global trend

■ No specific details are available at this stage as the Russian Government and

Roskomnadzor are expected to provide further guidelines and procedures before

September 1, 2015

■ Compliance questions regarding PD Law could be triggered not only by

Roskomnadzor, but also by internal employee or external supplier.

■ Organizations are working with PD should be registered as PD Operator.


Probable scenarios as a starting point

Any particular decision with regards to PD Law is responsibility of the

customer depending on systems architecture and systems landscape design.

From SAP veiw there are two reasonable initial areas which need to be managed

on the way to be compliance with the PD Law : Master Data Management

systems which are relevant for PD Law and HCM related systems.

This is required two solutions:

1) For Master data: “Carve-out” of Master Data Management capabilities

(related to Russia) into separate system within Russia with subsequent

replication of Master Data into main system – all business

processes/functions (including reporting) stay unchanged.

2) For HCM systems: Separation of HCM systems (related to Russia) into

local instance within Russia. Following integration with other system is

needed (including integration with Finance and Reporting Tools). This

solution has also additional benefit – simplification of support of local HR

related Russia specific.

SAP Landscape Transformation Solutions and Services


Global solution landscapes change

■ Global centralized solution landscapes allow using the unified solutions worldwide

■ Roll-out the new functionality fast

■ Lower the TCO

■ Faster solution implementation

■ Lower the solution operation costs

… But require transformation when

■ The business diversifies

■ Need to implement specific solutions for certain regions/ units

■ Solutions are subject to specific security requirements

■ Require increased availability in certain regions

■ Solutions are subject to specific legal requirements


Solution split brings the new challenges for the IT organization

Setup of the local organization for solution operations and support

■ Build own data center or cloud solution

■ Build the local center of expertise

■ Build and train the local support organization (implement the best practices of SAP Application Lifecycle management methodology in the local IT unit)

■ Setup solutions for support of the corresponding solutions (SAP Solution Manager)

Adopt the business processes and enable the necessary interfaces to other solutions

■ Rebuild the corresponding business processes to enable the end-to-end integration

■ Enable the business data exchange with the global SAP landscape

■ Non-SAP solutions

■ Enable the data consolidation for reporting and analytics

Perform the solution split

■ Make the split no event for the business users

■ Enable the data consistency in the new splitted solution including the historical data

■ Take into account the requirements for the availability of the global landscape and ongoing projects

■ Use proven solutions and SAP best practices for the solution split/carve-out


Scenario Original landscape Target landscape Technical split/carve-out scenario

Challenges

Solution migration to a new DC or cloud

• Own Data Center or SAP HEC

• Solution migration into the new DC

• Solution migration into the cloud (e.g. HEC)

• Perform the smooth transition to the new platform

• Make migration no event for the business

• Avoid performance issues in integration with other solutions in the landscape

Client transfer in a new or different solution

• Own Data Center or SAP HEC • SAP Landscape Transformation

• Client transfer

Mentioned above plus

• Perform the client migration to the new solution

• Keep in the both solution landscapes in sync

Technical scenarios for the solution split/carve-out, 1/2

SAP Business

Suite

SAP Business

Suite

SAP Business Suite

We SAP SE believe that whatever scenario would be acknowledged by Russian authorities and chosen by our customers, we can support it with our proven tools and long-time experience in performing the conversion projects.


Business scenario

Original landscape

Target landscape Technical split/carve-out scenario

Challenges

Organizational unit carve-out

• Own DC or SAP HEC

• SAP Landscape Transformation

• Company code carve-out with (optional) migration to the new platform

Mentioned above plus

• Company-code carve-out e.g. with SAP LT tools

• Setup of the new interfaces to enable the solution integration

• Including if necessary (near real-time) data exchange, e.g. master data

• Enable the end-to-end process integration

• Enable the consolidated reporting and analytics

• Solution optimisation for the new platform

Part of the business process running on a new (different) solution

• Own DC or SAP HEC

• SAP Landscape Transformation

• SLT LT Replication Server

• Part of the business process carve-out, e.g. master data maintenance

• Setup the local solution

• Local solution integration including

• necessary (near real-time) data exchange, e.g. for master data

• Interface performance optimisation

• Include the local solution into the solution management and setup the operational procedures

Technical scenarios for the solution split/carve-out, 2/2

SAP Business Suite

SLT

SAP Business Suite

SAP Landscape Transformation Solutions and services


Main reasons for the landscape changes

Current situation Target situation

Merges & Acquisitions Company merges, joint ventures

Business diversification One part of the business is reorganized as a separate independent legal unit, subsidiary or sold.

Company restructuring Simplification and unification of solutions, implementation of the new business requirements, organizational changes need to be realized in the SAP solution landscape

Business process optimisation Process unification in business units, unification of chart of accounts, clean-up the master data

IT landscape optimisation System consolidation and landscape harmonization including upgrades and/or DB/OS migration, cost reduction for the solution operations and support

Scenarios


SAP Landscape Transformation Product overview

SAP Landscape Transformation helps to analyze, plan and perform SAP solution transformation projects for the typical business transformation scenarios: consolidation and split, internal reorganization and business process harmonization. The SAP Landscape Transformation solution provides step-by-step guided scenarios, necessary knowledge bases and conversion and migration engines to perform the consistent transformation.

Analysis

Allows to perform the analysis for the preparation of the transformation solutions

Analysis tools for repository, customizing, master and transactional data

Transformation scenarios for merge, sell and business restructuring

Merge or sell of a company or part of a company

Reorganization of the business units

Unification and data transformation

Enable company-wide unification and transparency in finance and logistics

Aster data harmonization

Consolidation and IT costs reduction

Solution consolidation on the same version/ different versions


Typical SAP Landscape Transformation requirements Scope of SAP Landscape Transformation

Analysis and technology platform

Organizational changes Harmonization

Consolidation

Carve-out:

■ Company Codes

Reorganization:

■ Profit Centers

■ Segments

Merge:

■ Company Codes

■ Controlling Areas

■ Profit Center

■ Cost Center

Transfer:

■ Client Transfer with Different Releases

■ Client Transfer with Matching Releases

Convert:

■ Chart of Accounts

■ Cost Center

■ Profit Center

■ Fiscal Year

■ Asset Classes

■ Asset Account Determination

■ Customer Numbers

■ Vendor Number

Rename:

■ Controlling Areas

■ Company Codes

■ Material Numbers

■ SAP NetWeaver Analysis

■ ECC Business Application Analysis

■ Company Code Object Analysis

■ Report Variant Analysis & Coding Scan

■ Repository & Customizing Comparison

■ Scenario-Specific Analyses

SAP Landscape Transformation


Additional possibilities for customers having premium support engagement SAP MaxAttention or SAP Active Embedded

Even more different transformation requirements could be answered with the wide range of transformation solutions collected by SAP System Landscape Organization within the last 10 years.

For example, following services may be delivered in the frame of Engineering Services for SAP Landscape Transformation software:

Tax code conversion

UserID rename

Incremental transformation engine

Object-based migration

Plant relocation

Solution transformation with migration on SAP Business Suite on SAP HANA

Currency conversion

Different rename capabilities, e.g. for purchasing organizations, sales organizations, operating concerns

Cross-release system/ client merge

… and many other solutions


SAP Landscape Transformation advantages

Frequent challenges during the transformation project planning and execution

Usage of SAP Landscape Transformation provides

Long project duration until your business departments can use the target landscape productively

Hard to estimate project costs and project duration

Transformation violates the data consistency for the corresponding business processes

Limited capabilities to adapt the project experience for the further projects

Reduced time until the successful results visible for the business units

Consistent data conversion

Predictability

Clear estimations of the project requirements, costs, project duration

Reduced costs

Lower budget due to the usage of standardized services and effective tools

Minimal influence on productive solutions and minimized risks

Guided approach verified in many projects

Flexibility and continuity

Project team is fit for the changing requirements

After the project is finished IT is ready for further changes

Cases for SAP HCM and SAP SF landscape transformation


Prerequisites

• To be compliant with Russian regulation we have to originally create and

modify personnel data of Russian employees in a system that physically

situated in Russia

• We agree that if personnel data of Russian employees was originally

created/modified on a system that physically situated in Russia then further

data transfer to Global systems is allowed

• We highly desire to minimize global HR process disruption


Case 1: Global SAP HCM & Global SAP SF

SAP SF

Global

SAP HCM

Global

inte

gra

tio

n

Current landscape

SAP SF Global:

system uses for Talent management processes

worldwide. Employee data transfers from SAP HCM

Global via integration flows

SAP HCM Global:

system uses for all Core HR processes worldwide.

Employee data originally creates in this system


Case 1: Global SAP HCM & Global SAP SF Option 1

SAP SF

Global

SAP HCM

Global

integration

Target landscape

SAP SF Global:

system uses for Talent management processes

worldwide. Employee data transfers from SAP

HCM Global & Russia via integration flows

SAP HCM Global:

system uses for all Core HR processes worldwide

(except Russia). Non-Russian employee data

originally creates in this system

SAP HCM

Russia

SAP HCM Russia:

system uses for all Core HR processes in Russia.

Only Russian employee data originally creates in

this system


Case 1: Global SAP HCM & Global SAP SF Option 2

SAP SF

Global

SAP HCM

Global

inte

gra

tio

n

Target landscape

SAP SF Global:

system uses for Talent management

processes worldwide. Employee data

transfers from SAP HCM Global

SAP HCM Global:

system uses for all Core HR processes

worldwide (except hiring/firing/change pers

data for Russian empl.). Non-Russian

employee data originally creates in this system

SAP SF

EC

Russia

SAP SF EC Russia:

system uses for basic Core HR processes

(hiring, firing, change pers. data) in Russia.

Only Russian employee data originally

creates in this system

integration


Case 2: Global SAP SF & Local SAP HCM

SAP SF

Global

SAP HCM

Local 1

integration

Current landscape

SAP SF Global:

system uses for Core & Talent management

processes worldwide. Employee data

originally creates in this system and transfers

for Payroll/Time to SAP HCM Local systems

via integration flows

SAP HCM Local (country or group of

countries level):

system uses for managing Time & Payroll

processes locally. Employee data transfers

from SAP SF SAP HCM

Local n


Case 2: Global SAP SF & Local SAP HCM

SAP SF

Global

SAP HCM

Local 1

integration

Target landscape

SAP SF Global:

system uses for Core & Talent management

processes worldwide (except pers data

creation/modification for Russian employees).

Employee data (for non-Russian empl) originally

creates in this system and transfers for

Payroll/Time to SAP HCM Local systems via

integration flows. Employee data (for Russia

empl) transfers from SAP SF Russia

SAP HCM Local (country or group of countries

level):

system uses for managing Time & Payroll

processes locally. Employee data transfers from

SAP SF

SAP HCM

Local n

SAP SF

Russia

integration

SAP SF Russia:

system uses for basic Core HR processes (hiring,

firing, change pers. data) in Russia. Only Russian

employee data originally creates in this system


Key takeaways

• We can split our global system (HCM or/and SF) onto two separate systems

• We can integrate separated system one to another

• SAP SuccessFactors Employee Central allows to manage locally based Core HR

processes like hiring, firing, personnel data change etc. for Russian employees

SAP HANA Enterprise Cloud in SAP CIS Data Center Moscow


SAP HANA Enterprise Cloud is a fully

managed, secure cloud offering under the

SAP Cloud powered by SAP HANA. It is

ideal for mission-critical applications such

as SAP Business Suite, SAP NetWeaver

Business Warehouse and custom SAP

HANA applications. SAP HANA Enterprise

Cloud offers cloud elasticity and flexibility

with subscription based pricing, making it

easy to access for companies.

SAP HANA

Enterprise Cloud

The power of real-time business

with the simplicity of the cloud

SAP HANA Enterprise Cloud is an integral part of the overall SAP Cloud Portfolio that also

includes powerful public cloud applications

The portfolio helps executives manage their core businesses with increased agility, while

providing 40+ years of business process experience

The private cloud solution – SAP Enterprise Cloud – provides a private cloud solution to run

most SAP’s applications – including SAP Simple Finance, SAP Business Suite applications,

and SAP Business Warehouse

It allows you to take advantage of the advanced in-memory infrastructure as well as delivery

of tailored professional services delivered by SAP Service organizations or certified partners

The key advantage of SAP HANA Enterprise Cloud is the speed and ease with which you

can access SAP HANA based innovations for mission-critical applications.

SAP HANA Enterprise Cloud is part of the broader SAP Cloud

portfolio

Subscription based pricing offers greater flexibility

and easy transition to the cloud

Achieve fastest time to value for your SAP HANA

implementation with this elastic enterprise class

cloud offering

Highlights

Subscription package offerings now available:

— Simple Finance

— SAP BW on SAP HANA Enterprise Cloud

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https://jam4.sapjam.com/wiki/show/V8izj7pa9IIDtw8spH4WOy


Dramatically simplify every aspect of

delivering business processes

consistently securely and quickly across

the enterprise

SAP manages the cloud environment

from end-to-end reducing risk and

allowing you to optimize and simplify

your IT

Focus on business outcomes instead of

technology outcomes

Faster time to value with simplified

implementation

Complex IT landscapes transformed

into one cloud environment

A single support source for the entire

stack

Cost effective pricing models for

subscription or license based adoption

(operating expense instead of capital

expenditure)

Project (< 1 year, 95% SLA) or 36-

month Production (36 months, 99.5%

SLA)

Predict and respond to changing market

conditions with SAP HANA and powerful

predictive analytical solutions

Achieve agility through rapid

deployment of mission critical

applications and ability to scale

Deliver breakthrough speed in providing

business processes optimized on

HANA In-Memory database

Scalable, dedicated environment with

bundled applications, service and

support enabling adoption of new

business processes and models

Comprehensive SAP HANA focused,

secure, and global 24 x 7 cloud

operation

Management and support of

applications and technology to

transition to cloud and transform the

business

Secure (SAS-70 Type II, ISO 27001,

SSAE, PCI), geographically dispersed

SAP managed datacenters around the

world

Innovate with immediate access to the

latest, state of the art SAP technology and

application

Take advantage of SAP and partner

HANA application innovations faster

Embedded analytics provide insight

with unprecedented speed so you can

capitalize on new and untapped

opportunities

Platform ensures management,

monitoring and maintenance are not

an afterthought

SAP and partner innovations are

managed by SAP, and operate without

risk or disruption to the IT architecture

Overall lower total cost of operations

frees up resources to put towards the

business instead of IT

24x7 customer support availability

99.5% combined hardware, database and

application uptime

100% data center availability

100% power availability

100% renewable electricity for data center power

Accelerate Simplify Innovate

Creating competitive advantage through innovation with SAP HANA

Enterprise Cloud

Source: According to SAL’s Service Level Agreement (SLA)

sap.com/hec

saphana.com/sap-hana-enterprise-

cloud

SAP HANA Enterprise Cloud

Library

@sap #SAPHANA

#Cloud

Twitter

SAP HANA Blogs

SAP HANA Enterprise Cloud

components for high

availability include*:

Advantages of Cloud

Resources

Web resources

Social media

CapioIT

SAP.com

SAPHANA.com

SAP Community Network (SCN)

COST – Shift expenditure from capital expenditure to operational expenditure

SCALABILITY – The ability to expand storage, servers and new solutions in alignment with changing business

demands and requirements

SPEED – Accelerate the pace of innovation and open up new opportunities with real-time analytics

SECURITY – Leverage SAP's expertise in data security and investment in state-of-the-art data centers

http://www.sap.com/hec

http://www.sap.com/hec

http://sap.com/banking

http://www.saphana.com/community/cloud/sap-hana-enterprise-cloud







http://scn.sap.com/docs/DOC-48668

http://scn.sap.com/docs/DOC-48668

https://valuemanagement.sap.com/vlm/#/

https://twitter.com/SAP

https://twitter.com/SAP

http://www.saphana.com/community/blogs


SAP offers HANA Enterprise

Cloud services out of two Data

Center facilities for

Metropolitan-DR (Disaster

Recovery) located in Moscow

within 20 km for synchronous

replication:

Primary DC (1) – 1с119, Akademika

Kurchatova Sq, Moscow, Russian Federation

Secondary DC (2) – 7, Borovaya

str,, Moscow, Russian Federation

SAP Data Centers in Russia - Locations

5/20

MOSCOW

CITY


SAP Data Centers in Russia

Primary DC

7/20


SAP Data Centers in Russia

Secondary DC

8/20

Q&A


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Documents

Short Presentation Title unification in business units, unification of chart of accounts, clean-up the master data IT landscape optimisation System consolidation and landscape harmonization