SAP Innovation Awards 2019 Entry Pitch Deck

5G and SAP, Laying the Foundation for the Most Digitally Connected Intelligent Enterprise on the Planet

2

“Quote” Challenge

Solution

Outcome

Cornerstone of Global Intelligent Enterprise

Reduction of close by 1.5

business day globally.Lower IT TCO by 20%

One global chart of accounts,

One global set of profit centers,

One global set of cost centers (reduction of ~15k cost centers)

“12a was truly

transformational

phase for Connect.

Looking forward even

greater impacts with

future releases.” – VZ

Accounting

“The third period in S4

(period 12) did start

feeling like BAU

[Business As Usual]” –

VZ Controller

3

Business Challenge & Objectives

Verizon has promised shareholders that $10BB of shareholder value be returned

via transformation, the digital backbone of which is SAP and intelligent enterprise.

Current multiple instance landscape do not provide a single source of truth, real-

time information or adequate visibility for decision making. Verizon decided to

move to a single instance of S/4 HANA to run business operations for key

business units including Wireless, Wireline, Oath (AOL & Yahoo) and Verizon

Connect

Key drivers are standardizing, simplifying and automating its IT landscape and processes with guiding principles including cloud first, greenfield, no customizations and self service.

Deliver greatly simplified and standardized accounting master data across the entire enterprise, while setting the foundation for supply chain.

Create the platform for the digitally intelligent enterprise.

4

Project / Use Case Details

➢ Because of years of successful growth and acquisition, Verizon has multiple systems (8 ERP’s,40+ systems, 70+ countries) making LoB Insights, financial close and consolidation cumbersome.

➢ SAP and Verizon needed to combine the optimal architectural concepts with the process reengineering in order to enable a transformation. Verizon began this journey to massively transform the business specially to reduce financial close duration, enable a single source of truth & reduce Manual tasks. SAP addressed Verizon by implementing S/4 HANA single tenant via Model-company & Agile. An ideal combination to provide sustainable ROI, is somewhere between where simplicity is coupled with optimal design & logical transitions.

➢ The first step in the journey was implementation of Central Finance, which changed how reporting and closing was done for the $ 120 B+ company. Verizon followed the principle of “one” to enable enterprise wide processes through a global design & cloud first approach.

➢ Simplified Architecture encompassed a true Hybrid Architecture leveraging best of Private cloud (S/4), Public cloud (Ariba, Concur, Fieldglass, Hybris), PaaS (SCP), On-premise enabling Finance,O2C, Billing, Procurement, Installation processes. Expected benefit from this transformation is slated to be significant thanks to the streamlined processes

➢ The first month-end close was completed Nov 2018 including all domestic and international Income Statement (P&L) & Balance Sheet activities for first business unit. Key benefits included the ability to see detailed GL transactions in one system for all entities for the first time, providing greater insights into business operations. This will be followed by other releases rationalizing AP, Order to Cash and Billing processes.

5

Benefits and Outcomes

Business / Social IT Human Empowerment

✓ Reduction of close by

1.5 business days.

✓ Simplification of the

accounting data for

seamless operations

and visibility across the

enterprise.

✓ Enabling the dissolution

of traditional product /

network siloes in

support the move to a

customer-centric

enterprise driven by 5G.

✓ 20% reduction in IT

TCO.

✓ Rationalization of the

solution landscape.

✓ Fewer customizations

to manage and less

technical debt.

✓ Streamlined financial

workflows for better

use of labor and user

experience.

✓ Self service reporting

for Accounting teams.

✓ Executive access to

critical business KPIs.

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or

distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

External

Applications

External

ApplicationsSolution

Extension

-Scheduling

API

Management

Integration

Cloud

connector

SAP

web

dispat

cher

SAP SOM

(Hybris Billing)

SAP S/4 HANA

1709

Enterprise

HANA

Verizon Legacy

Firewall

SAP MDG

HEC/ On-Premise

SaaS

SAP Service Cloud

Integration

Installation

Management

Architecture

UX (Fiori 2.0)

Ve

rizo

n 1

ER

P A

rch

ite

ctu

re nSAP

External

Applications

vSAP

PPlsoft 9.0

PPlsoft 9.1

Oracle Oath

TDS

Pi/PO

SLT

Data

Service

Integration

&

Conversion

Fin

ancia

l docs

3rd Party

7

Deployment

SAP Technologies Used:

Server Processor:

Linux Distribution:

Date of Deployment or POC:

Number of live users:

October 2018, May 2019

5,000

Intel Xeon

Linux SUSE

S/4HANA 1709 Live

MDG Live

FIORI 2.0 Live

SAP Service Cloud Live

Hybris Billing Live

SAP Cloud Platform (SCP) Live

Enterprise HANA POC

8

Emerging Technologies and Use Cases

The following Emerging Technologies and use-cases are part of the project and describe the

contribution

Technology or Use Case Yes/No Contribution to Project1. Machine Learning / Artificial

Intelligence

NO

2. IoT NO Verizon Connect delivers

Telematics services enabled by

digital platform.

3. 3D printing NO

4. Blockchain NO

5. API Economy / Integrate the

Intelligent Enterprise

YES Integration to third party eg. 3PL.

6. Cloud Native / Event Based

Architectures

YES Ariba CIG and Concur native

integration.

7. Extending the digital core with SAP

CP / ABAP in SAP CP

NO

8. SAP Leonardo Application ( extending

SAP application, using Industry

Innovation Kits or result of Design

Thinking workshop)

YES SAP extension for SAP Cloud for

Service via SCP to allow scheduling

process for installation of fleet

devices.