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Explaining ERP for Defense

Objectives

After completing this lesson, you will be able to:

Explain the solution in an overview
Explain Asset Management for Defense
Explain the intelligent enterprise

Solution Overview

Next, we will explore the potential values for defense and security organizations:

Military Planning & Operations
Military Supply Chain
Maintenance & Engineering
People & Talent
Budget & Finance

The image displays 5 military management categories: 1. Military Planning & Operations, 2. Military Supply Chain, 3. Maintenance & Engineering, 4. People & Talent, and 5. Budget & Finance.

Value Potential for Defense and Security Organizations

Solution Area	Value Potential	Potential Improvements
Military Planning & Operations		Collaborative planning effort: -3-5% Time to mission ready: -10-30% Readiness reporting effy.: +40-80%
Military Supply Chain	Prioritize replenishment planning Manage and assign equipment Process transport activities for goods	Inventory Carrying Cost: - 2-4% Day in inventory: - 10-12% Total logistics cost: - 10-12%
Maintenance & Engineering	Help armed forces organizations plan, execute, and document maintenance tasks Integrate organizational, logistic, and material management data Help field technicians plan, execute, and document maintenance tasks during deployments and field operations	Unplanned Asset Downtime: - 5-10% Scrap value: - 10-15% Engineering Change Cost: - 10-40%
People & Talent	Consolidate HR and payroll processes Identify and analyze talent gaps and streamline workforce planning Standardize and automate recruiting and talent acquisition	Employee Engagement: Up to +15% Training spend: - 10-20% Direct recruiting spend: - 10-20%
Budget & Finance	Public sector budget planning: Adjust plans and allocate resources Public sector finance: Close the books on time and create financial statements Enterprise risk and compliance management: Automate activities and prevent risk and compliance violations	Audit cost: - 20-40% Budgeting & forecasting cost: - 25-50% Days to close annual books: - 40-50%

The image displays 5 icons representing different military management categories: People & Talent, Maintenance & Engineering, Military Supply Chain, Budget & Finance, and Military Planning & Operations.

People & Talent
- Consolidate HR and payroll processes
- Identify and analyze talent gaps and streamline workforce planning
Maintenance & Engineering
- Help plan, execute, and document maintenance tasks
- Integrate org, log, and EAM data
Military Supply Chain
- Prioritize replenishment planning
- Manage and assign equipment
- Process transport activities for goods
Budget & Finance
- Public sector budget planning: Adjust plans and allocate resources
- Public sector finance: Close the books on time and create financial statements
Military Planning & Operations
- Capability-centric table of organization and equipment
- Break down information silos and integrate data from multiple sources

The image displays an icon representing personnel, consisting of a person wearing a military uniform and cap.

Consolidate HR and payroll processes
Identify and analyze talent gaps and streamline workforce planning

The image displays an icon representing material and equipment, consisting of a military vehicle or tank.

Help armed forces organizations plan, execute, and document maintenance tasks
Integrate organizational, logistic, and material management data
Help field technicians plan, execute, and document maintenance tasks during deployments and field operations

The image displays an icon representing a supply chain, consisting of a stack of cargo containers.

Prioritize replenishment planning
Manage and assign equipment
Process transport activities for goods

The image displays an icon representing finance, consisting of stacked bills or money.

Public sector budget planning: Adjust plans and allocate resources
Public sector finance: Close the books on time and create financial statements

The image displays an icon representing tasking, consisting of abstract geometric shapes and arrows.

Capability-centric table of organization and equipment
Break down information silos and integrate data from multiple sources

Defense & Security Value Map Overview

The image displays an overview of military planning and operations, covering areas such as force deployment, supply chain, maintenance, procurement, finance, and human resources.

Solution Overview

The image provides an overview of force generation and deployment, including areas such as planning, capability management, logistics, finance, and workforce management. It covers various aspects like strategic management, capability planning, program management, asset management, inventory management, purchasing, and human resources.

Readiness

The ability to provide capabilities required by the combatant commanders to execute their assigned missions.

The image shows a large number of military vehicles, likely Humvees, parked in a desert environment. There appears to be a maintenance or storage area with various equipment and supplies visible.

Capability Acquisition

The image shows a group of military ships sailing on the ocean at sunset. The ships are silhouetted against the colorful sky, creating a dramatic and visually striking scene.

Capability Overview

The image shows a table displaying various military capabilities, including the capability code, capability type, capability name, valid from, valid to, owner, variant group, status, capability tree, and symbol. The table contains information about different military units, equipment, and functions.

Asset Management

Asset Management Portfolio from SAP for End-to-End Processes

The table below provides an overview of the SAP Asset Management Portfolio for end-to-end processes.

Plan to optimize assets	Acquire to onboard	Operate to maintain	Offboard to decommission	Manage assets
Identify the right mix of maintenance strategies and optimize maintenance activities with real-time monitoring.	Acquire and onboard assets in collaboration with the entire asset ecosystem.	Plan, schedule, and execute maintenance activities in an efficient manner.	Decommission assets in compliance with necessary regulations.	Create and maintain asset master data in a streamlined manner.
Asset strategy and planning SAP Asset Strategy and Performance Management SAP Asset Strategy and Performance Management SAP S/4HANA Cloud SAP S/4HANA	Asset acquisition SAP S/4HANA Cloud SAP S/4HANA Ariba Network SAP S/4HANA for real estate operations	Asset maintenance planning SAP S/4HANA Cloud SAP S/4HANA SAP S/4HANA Asset Management for resource scheduling SAP Field Service Management	Asset decommissioning and disposal SAP S/4HANA Cloud SAP S/4HANA SAP S/4HANA for real estate operations	Asset information management SAP S/4HANA Cloud SAP S/4HANA SAP Master Data Governance, enterprise asset management extension
Asset maintenance and optimization SAP Internet of Things SAP Predictive Asset Insights SAP S/4HANA Cloud SAP S/4HANA	Asset construction and build SAP S/4HANA Cloud for projects SAP S/4HANA Cloud SAP S/4HANA SAP Enterprise Project Connection	Asset maintenance execution SAP S/4HANA Cloud SAP S/4HANA SAP Geographical Enablement Framework SAP Linear Asset Management SAP Asset Manager		Asset review and risk management SAP S/4HANA Cloud SAP S/4HANA
	Asset commissioning SAP S/4HANA Cloud SAP S/4HANA SAP Asset Intelligence Network SAP Master Data Governance			Sustainability operations SAP S/4HANA Cloud SAP S/4HANA
				Collaborative asset lifecycle SAP Master Data Governance SAP Asset Intelligence Network SAP Field Service Management SAP Crowd Service

Defence Force Analytics Dashboard

Transportation Management

Advanced Available to Promise enables inventory to be allocated to planned demands. Supplies critical to operations are reserved for the participant force elements and only released to others if approval is given.

The image shows four key aspects of a business or process: Costs, End-to-End, Visibility, and Decisions. Each aspect is represented by an icon and a descriptive label. The image also includes icons representing various business activities and processes, such as transportation, analytics, and logistics.

Reduce costs by increasing asset utilization, freight consolidation, and routing optimization.
Streamline the end-to-end process through holistic, multi-modal transportation management.
Create end-to-end transportation visibility and improve service levels by creating full freight transparency.
Support real-time, data-driven decision-making for quicker business decisions and faster insights.

Logistics Network and Track & Trace

The image depicts the SAP Logistics Business Network, which connects various entities in a logistics ecosystem, including shippers/suppliers, customers/consignees, and carriers/LSPs (Logistics Service Providers). The network facilitates collaborative processes, digital documents, real-time insights, and back-end system integration. Key components shown are the SAP platform, other networks, and icons representing different aspects of the logistics network.

Manage logistics transactions jointly and gain material flow transparency across the complete value chain.
Break up silos and run business processes seamlessly through tight integration with back end logistics.
Benefit from situational awareness and eased decision making through Track and Trace data, combined with IoT insights.
Onboard once and collaborate with many, also leveraging established logistics networks.

The image shows a world map with green markers indicating cargo locations. The map is accompanied by various analytics and data related to shipments, freight bookings, and modes of transportation. The interface appears to be a dashboard for transportation and logistics management.

SAP S/4HANA Asset Management Defense & Security

Understand the technical and operational status of a main equipment and its critical components using system generated and human assessed statuses. Gain an overview of the technical and operational state of a group of equipment. Prepare equipment for designated mission tasks, ensure maintenance tasks are completed, manage the hand-over to operations and support post task debriefs and incident reporting. Automate the routing of notifications to the correct supporting unit by understanding the maintenance relationships between force elements.

The image shows a diagram of the SAP Intelligent Asset Management system, which includes various components such as Asset Strategy & Performance, Asset Central Foundation, Asset Health Prediction & Optimization, Execution & Reporting, Planning & Scheduling, and Defence & Security. The image also displays a Display Status Board screen with details of asset equipment, technical status, and other operational information. Additionally, the image includes symbols representing various nations, such as the flags of Norway, the United Kingdom, Sweden, Switzerland, and the United States.

The Defense and Security add-on extended SAP S/4HANA Asset Management by providing mechanisms:

To derive the technical status of weapon systems (including sub-equipment)
To enable commanders to add their own view of the status of systems
To provide an overview of the status of systems
To assist in the preparation of equipment for mission tasks including checklists and hand-over procedures
To automate the routing of maintenance notifications based on the relationships between force elements (for example ship to support base, to 3rd party sustainment provider)
The solution is used by many other Defense organizations including Canadian, German and Norwegian Navies. It is also used by the US Army.

The Intelligent Enterprise

So, Organizations must become Intelligent Enterprises. We are mostly still at stage one, gathering data.

What that means is that your org. can (ADV) understand what is going on, (ADV) why things are happening, (ADV) in time to act and effect the outcomes (ADV) make predictions, (ADV) in a positive way. To get to this new state of awareness, prediction, decision making, and automation, you must get to a state where it all works together in a near real-time. It is not enough to collect data and analyze what happened last month or last week.

(ADV) When your organization does this all together, you become much more competitive and efficient, and can increase readiness.

The image shows a process flow diagram illustrating the concept of sensing what is happening, understanding why it is happening, acting in time as part of the process, and making accurate future predictions, ultimately leading to increased readiness. The diagram uses icons and text to visually represent the different stages of this process.

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