A smarter way to transform your system and run it on the cloud

A smarter way to transform your system and run it on the cloud Kickstart Explosive Growth with a CLEAN CORE Approach to SAP COPYRIGHT 2021 SMARTSHIFT PROPRIETARY AND CONFIDENTIAL 1

Today’s Presenters Scott Loose Matt Aucella VP Solutions VP Sales, Americas [email protected] 617-335-5100 [email protected] 508-613-5326 COPYRIGHT 2021 SMARTSHIFT PROPRIETARY AND CONFIDENTIAL 2

Agenda Problem Statement smartShift Overview Clean Core - What, Why, How? Pathways to Clean Core Modernization Case Studies Let’s Get Started COPYRIGHT 2021 SMARTSHIFT PROPRIETARY AND CONFIDENTIAL 3

Custom Code Advantages & Challenges Two sides of the same coin ASUG Market Research - SAP customers indicate the following needs for custom code: 46% - Needed for regulatory requirements 45% - Essential for innovation 35% - Essential for localization 32% - Critical for competitive advantage UKISUG research - 92% of SAP customers expect customizations will present a challenge when moving to S/4HANA: 58% plan to rebuild (e.g. on BTP) 28% plan to keep existing customizations 12% plan to remove customizations entirely (replacing them with standard functionality) Over on-third of organizations said the amount of change management required to move to S/4HANA was more than expected. COPYRIGHT 2021 SMARTSHIFT PROPRIETARY AND CONFIDENTIAL 4

Custom Code Challenges & Opportunities From a Legacy of Inflexibility to a Future of Agile Extensibility Average SAP System: 15 years old, 22K custom objects, 2.7MM lines Often customized ad-hoc by who knows? Poorly maintained Common Issues: Unused code No standards Performance, stability, resilience, security issues Customization tightly coupled to core Low agility, long release cycles, huge backlogs Clean Core Frictionless Upgrades Scalable customization Lean development teams Agile deployment Standard APIs Focus on innovation COPYRIGHT 2021 SMARTSHIFT PROPRIETARY AND CONFIDENTIAL 5

smartShift Overview GLOBAL LEADER IN AUTOMATED ENTERPRISE TRANSFORMATIONS Industry LEADER Intelligent Automation 200 employees EXPERTS in PATENTED 20 1000 100 successful legacy transformations Intelligent Automation Platform YEARS R&D Cloud, SAP Transformation and Migration Projects Suite on HANA projects CERTIFIED Technology Partnership with Boston, Bangalore, Mannheim & Munich ISO 27001, AWS MAP & MSP SAP, Oracle, RedHat, SUSE Cloud Migration, Managed Services partnerships with AWS, Azure, GCP 70 successful S/4HANA transformations smartShift worked with 2 out of 5 S/4HANA Business Transformation finalists in 2021 COPYRIGHT 2021 SMARTSHIFT PROPRIETARY AND CONFIDENTIAL 6

smartShift Overview - Global Customers COPYRIGHT 2021 SMARTSHIFT PROPRIETARY AND CONFIDENTIAL 7

Why Clean Core? ERP SaaS Web Legacy Customer Enhancements Bespoke App Development Breaking the Monoliths apart Business Agility Vendor Modernized Solutions COBOL COBOL DevOps, Agile Custom Development Cloud Native App Architectures & Platforms CI/CD Containers Microservices Technical Agility Cloud First Orchestration Past and Present Monolithic, Rigid, Brittle, Opaque API REST, GraphQL - Capex to Opex - IT debt to asset - Optimized resources - Faster time-to-market - Increased ROI - Business driven SLA - Innovation via Analytics Present and Future - On-demand scalability - High availability - Easier maintainability - Faster performance - CI/CD with DevOps Containerized, Scalable, Flexible, Agile COPYRIGHT 2021 SMARTSHIFT PROPRIETARY AND CONFIDENTIAL 8

The Vision of a ‘Clean SAP Core’ Convert SAP Custom applications to Modern UI , Cloud-ready Microservices and APIs Heavily Customized SAP Clean Core SAP ECC CUSTOM UI CLASSIC DYNPRO WD JAVA WD ABAP CUSTOM ABAP PROGRAMS PROGRAMS INTERFACES ENHANCEMENTS Standard SAP Side-By-Side Extensions Ariba ABAP In-App Extensions Success Factors Standard SAP FieldGlass ECC Microservices (JAVA, Node.js) (RAP) RESTFUL ABAP RAP RAP (ABAP (ABAP RESTFul RESTFul Programming) Programming) ABAP In-App Extensions FIORI APPLICATIONs Standard SAP ABAP ABAP on on CLOUD CLOUD FIORI FIORI (CAP) CLOUD APPLICATION PROGRAMMING CPI SERVICES Java Java Node Node Business Technology Platform COPYRIGHT 2021 SMARTSHIFT PROPRIETARY AND CONFIDENTIAL 9

Steps to a Clean-Core How to start today and prepare for the future Steampunk BTP Developments BTP ABAP Environment Application Modernization Embedded Steampunk S/4HANA Cloud & OnPrem (v2108 ) CAP Neo / Java / Node.js RESTful Artifacts In-App Extensions Cloud-Readiness - ATC Code Modernization S/4HANA Core Data Model Redesign HANA and S/4HANA Compliance - ATC Technical Debt & Unused Code Reduction / Stabilization COPYRIGHT 2021 SMARTSHIFT PROPRIETARY AND CONFIDENTIAL 10

Preparing for Clean Core In-App Extensions Candidates that are Eligible for S/4HANA Cloud Eligible for in-app extension Cloud Ready In-app Extensions Side-by-Side Extensions Tightly Coupled Candidates that are Not eligible for BTP Classical Extensions Core Modifications Core Plug-Ins Specific Industry Solutions Modifications/Classical Enhancements Side-by-Side Extensions Candidates that are eligible for Development as Custom Enhancement Development using RAP/CAP Deployment in BTP/Steampunk Integratable to 3rd party Cloud apps Loosely Coupled Classical Enhancements Classical Extensions On-Stack Candidates that are required to be Development as Custom Enhancement Can not be moved to RAP/Fiori Deployed On-Stack for BTP integration 3rd party plug-ins (Legacy Non-S/4) Classical Custom Extensions COPYRIGHT 2021 SMARTSHIFT PROPRIETARY AND CONFIDENTIAL 11

Case Study - BMW Order to Delivery – New SAP S/4HANA Template S/4HANA Greenfield Conversion S/4HANA BF SAP ECC 6.07 BF SAP Oracle Microservices BF1 BF1 BF2 BFn The Challenge Build a new template only with used and required (business) customizations; cluster, decouple and migrate customizations to S/4HANA; HANA, S/4HANA Enablement, Optimization with existing Security Requirements Strategic, customer-specific business processes not supported by S/4HANA; Strategic business processes to be extracted and converted to Microservices OpenShift Background and Goals Core Production System, 12 Plants, Highly customized running on SAP ECC Any car, any factory initiative Old SAP template customized per plant; process harmonization as primary goal New template definition with SAP S/4HANA core smartShift Solution and Results Identification, Mapping, Packaging and Migration of Business Functions to SAP S/4HANA; HANA, S/4HANA enabling & Optimization; 70% less code, 95% less dependencies Provision of a microservice infrastructure for highly scalable, platform-independent business processes; Develop/Generate and deploy interfaces between Microservice and S/4HANA COPYRIGHT 2021 SMARTSHIFT PROPRIETARY AND CONFIDENTIAL 12

Case Study - BMW Legacy to OpenShift Platform – Inbound Delivery Application implemented by smartShift Target Source Central AUTH Service SAP Master Data OpenShift Users Carrier SAP Plant Systems TRP-RTS EWMS TRP-CFC FAVOR Service Provider File Transfer Carrier File Transfer Non-SAP Plant Systems Users KSSL SAP FMS SAP Master Data SAP Plant Systems User Interface Carrier Bordero Service Non-SAP Plant Systems Bordero View Service KPI Report Service Matching Service Material Document Service File Transfer Account Info Service MFD Bordero Service MQTT Message Broker Container Data Service FMS Correction s Service Billing Data Service Supplier Data Service DB Server Cluster DB FMS Status Service File Transfer SAP FMS Java/JEE Servers (RHEL) Angular 3rd Party Tech Stack COPYRIGHT 2021 SMARTSHIFT PROPRIETARY AND CONFIDENTIAL 13 13

Let’s get started . Running R/3 or ECC? Moving to or running S/4HANA? Build the foundation and prepare your roadmap with Code Modernization Maximize the capabilities of SAP’s new architectures with Application Modernization Start Here: Start with Code Analysis Application Modernization Analysis COPYRIGHT 2021 SMARTSHIFT PROPRIETARY AND CONFIDENTIAL 14

COPYRIGHT 2021 SMARTSHIFT PROPRIETARY AND CONFIDENTIAL 15