CUSTOMER

Airbus Defence & Space

Centralize Financial Capabilities
Frank Graeve
HO ERP/BI foundation & BRM Finance at Airbus Defence and Space
Madrid, September 2018

Version: 01
AGENDA

► Airbus Defence & Space at a Glance

► Airbus Finance Group Vision, Information Management Strategy & The SimpliFI Project

► The SimpliFI Project to Introduce Central Finance at Airbus

► S/4 HANA Strategic approach: ERP Roadmap Program

PUBLIC
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►►►►►
Airbus Defence & Space – At a Glance
Airbus DS - Pioneering The Future Together ►►►►►

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Airbus DS - Facts About Us ►►►►►

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Airbus DS - Our Locations In Europe ►►►►►

Finland Germany Poland

Helsinki Backnang Warsaw
Jyväskylä Berlin
Bremen
Friedrichshafen Spain
France Hohn Getafe
Bezons Jena Madrid
Blagnac Manching Puerto de Santa María
Cognac Ottobrunn Sevilla
Elancourt Potsdam
Issy-Les-Moulineaux Ulm
Les Mureaux UK
Lyon Corsham
Saint Gilles Italy Filton
Toulouse Rome Guilford
Villeneuve-d’Ascq Newcastle upon Tyne
Newport
Norway Portsmouth
The Netherlands Lysaker Stevenage
Leiden

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Airbus DS - Our Portfolio ►►►►►

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►►►►►
Airbus Group Finance Vision,
Information Management Strategy &
The SimpliFI Project
Airbus Group Finance Vision ►►►►►
With its Finance Vision 2.0 the Airbus Group spotlights three guidelines for the divisions’ Finance and thus
sets a clear flight path for the future

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Our Information Management Strategy ►►►►►
With IM Strategy 2.0 we will enable the Airbus Defence and Space business for the future by
addressing the following business needs:

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The SimpliFI Program – Three Phases Towards The Future Finance ►►►►►
3
Central ERP System / Planning Suite / UX
Central ► Perform corporate or central transactional FI / CO processes,
ERP System Central closing, Planning application
with integrated ► Run all entities doing international business on a central ERP instance
Planning Application

2
Central ERP System
► Central Reporting Platform enhanced with
Central ERP System additional processes and functionalities, technical improvements
► Set up operational company code
► Resolve current white spots, mainly in reporting
► Enhance capabilities of Master Data Governance

Prerequisite for
1
Central Reporting Platform
► Implement new system with functionalities from SAP S/4HANA Finance
► Covering controlling and reporting only
Central Reporting Platform ► Real-time connection to source systems
► Master Data Governance tool
► Mobile reporting / dashboard capabilities

1 2 3
Year 2016/ 2017 2018/ 2019 2020 2021

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Our Mission – S/4 HANA Strategy: SAP ERP Roadmap ►►►►►
Today Future
O40
vision

PARDIGM

SAPHIR P11 NUP

MA3
OPAL
LM3
Shared Data Ownership Shared Data Ownership

ADP DSP
F41 IN3 NGP
P01
IE3 S/4 HANA
SP2 F40
PAS
NFP
PR1

NFP

SP1 SP1

Governmentally Restricted Classified Data

Commercial Data

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Transition to SAP S/4HANA : Three Migration Options ►►►►►

New
Implementation

System
Conversion

ERP System
- Region A -
Example:
Landscape
On-Premise Consolidation of current regional SAP
ERP System hosted by Airbus DS
Transformation - Region B - Business Suite landscape or selective data
ERP System
transformation into one global SAP
- Region C - S/4HANA S/4HANA system

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Airbus DS - Pain Points Led To The SimpliFI Project and ERP Roadmap ►►►►►
The current system landscape at Airbus Defence & Space comes along with challenges making it difficult
to achieve our visions.

PROCESSES No central process for master data governance available

Processes
TRANSPARENCY Lack of transparency, e.g. aggregated finance data available only after closing

DATA QUALITY Limited data quality and agility due to heterogeneous source system set-up
Processes
& AGILITY

TECHNOLOGY
Processes High level of user dissatisfaction with regards to accessibility and user experience

LANDSCAPE Landscape not consolidated / still fragmented / former divisional

Processes
EVOLUTION footprint

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Airbus DS – Expectations To The SimpliFI Project and ERP Roadmap ►►►►►
Given the challenges and with the Vision in mind, SAP S/4HANA Central Finance was identified
as the solution to be implemented.
HOW SAP S/4HANA HELPS
Harmonise processes across business lines.
PROCESSES Division-wide master data governance and processes

Real-time transparency of operational data on divisional and

Processes
TRANSPARENCY transactional level (cross system / cross entity)

DATA QUALITY Harmonized data model (master data) and back to standards for
Processes
& AGILITY division-wide comparability

Personalized intuitive user experience on multiple devices. Use most

TECHNOLOGY
Processes recent technology (S/4 HANA)

Non-disruptive and minimal-invasive approach in source systems and

LANDSCAPE EVOLUTION technical platform for convergence for central financial.
Processes
Drastically reduce number of systems

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►►►►►
Phase1:
The SimpliFI Project To Implement Central Finance
S/4 HANA Central Finance - Architectural Approach ►►►►►
Technical view

SAP Business Suite SAP LT Replication Server SAP S/4 HANA CFIN

RFC RFC
Read Engine Migration Workbench Write Engine
Connection Connection
► Table Configuration
► Technical Table Mapping
► Data Filtering
► Field Enhancements Interface Engine
Application table Logging table ► Field Extensions
Interface with
► Predelivered Central Finance Content
DB Trigger
Business Mapping (MDG-F)
(Key Mapping, Value Mapping)

Migration Workbench
Posting
SAP provides pre-delivered objects for the
technical table mapping for the Central Finance
Scenario. SAP HANA

ABAP source system SAP LT Replication Server S/4HANA Central Finance

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S/4 HANA Central Finance – Architectural Approach ►►►►►
Detailed View for one source system replicating data into Central Finance

► AUFK: Orders
► BKPF: FI document headers
► BSEG: FI document line items
► COBK: CO document headers
► COEP: CO document line items
► CFIN_ACCHD: combined FI/CO document headers
► CFIN_ACCIT: combined FI/CO line items

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S/4 HANA Central Finance – Table Structure Consolidation ►►►►►

SAP Business Suite Main Accounting Tables

GLPCT

ZZFISLT
Aggregates
COSP CFIN Condensed Table Structure
FAGLFLEXT
Totals COSS

COFIT ACTUALS
GLFUNCT PLAN

Consolidation of
BSIS BSIT

Table Structure
BSIK BSID

ACDOCA ACDOCP
BSAS BSAT BSAK BSAD Indices
BSIM
BKPF GLPCA
BKPF
ZZFISLA
Plan Data
BSEG
Documents (BPC: Project Phase 2)
FAGLFLEXA
COBK
ANEK Line Item Data
GLFUNCA

COEP
ANEP COFIS
Document Header Data

… Change Log

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Phase I: From Challenges To The Target Picture ►►►►►
Used Software Components

FRONTEND
FINANCE PORTAL (UX)
 S/4 HANA 1511 SPS 03 /Feature Pack 02
ANALYSIS
current release: 1709 FIORI APPS
FOR OFFICE
DASHBOARD(S)

 System Landscape Transformation Replication Server

DMIS 2011 (SLT)
S/4 HANA EXISTING BI
 HANA 1.02 SPS12 CENTRAL FINANCE (CFIN) MDG - F
► COIN CoA
► Profit Centre
SAP HANA ERP Business Suite
 Solution Manager 7.1 (soon: 7.2)

BACKEND
► Cost Centre MRT
► PPS-ID
► …

FI / CO
 MDG-F 8.0
PLANNING
 Shared components TOOL
CASH BI

 Saprouter Central Journal Value & Key Mapping

 Gateway, Webdispatcher
 BW on HANA ETL 2.0

TRANSACTIONAL
 Enterprise Portal SLT SLT SLT
FLATFILE

LAYER
 Firewalls SAPHIR SP1 LM3
UPLOAD
SP1
F, G, UK, ES ES GE
ES

 Enterprise Service Bus TIBCO

REMAINING
NON-CORE SYSTEMS
 Frontend components
 Analysis for Office
 Fiori Launchpad, Fiori Apps
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The SimpliFI Project to introduce Central Finance ►►►►►
Release 2 Timeline (First system went live on 16.12.2016)

Spanish source system connected.

Realtime replication switched on.
We are live with Spain!

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The SimpliFI Project to introduce Central Finance ►►►►►
Release 3 + 4 Timeline (Go-live two remaining systems in 07.2017)

All 3 source systems connected.

Realtime replication switched on.
We are live! 

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Airbus Defence & Space – Project Challenges ►►►►►

Overall Challenges
► Availability of experienced consultants

► Very tough and fixed timeline for go-live of first, second and third source system

Technical Challenges
► High security environment & Airbus security policies
► Access to national source systems limited to view access and guidance of local intermediary IT person via Web session

► Mixture of Agile Approach and Waterfall Approach led to several test cycles and several go-live

► Several go-lives induces a maintenance landscape for already gone live parts of the project plus a development landscape for ongoing
project developments for upcoming test cycles and go-lives

► Need to refresh several parts of the system landscape to clean-up former test cycles and having full data spectrum in the systems

► Highly complex system landscape with a lot of interdependencies

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Airbus Defence & Space – Project Challenges ►►►►►

Functional Challenges
 Only Classic GL in national source systems

 Migration of Business Partner

 Document Splitting (non standard) & Open Items handling

 Project Replication required but not yet available as SAP standard functionality

 Very limited time and capacity for analysis of source data to define Business Blueprint
(e.g. document types, validation rules, tax codes, etc.)

The Go-live
 Very successful Go-live on 05.07.2017 with switch on of online replication of UK system P11 and German system LM3

 Approx. 30 Mio. data records moved and reposted into the Central Finance target system during the initial load

 No major technical issues and excellent quality of FI and CO data

 Very acceptable performance of online replication postings into Central Finance (single posting takes ~3 – 5 seconds)

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►►►►►
Sneak Preview to the Finance Future
Phase II: Technical Improvements & Functional Enhancements ►►►►►
Scope of functional improvements and enhancements of S/4HANA Service

Work Stream Topic

► Improve data quality in CFIN
(Master data cleanup, adjustments and correction postings for SP1, P11, LM3 data plus source system adjustments)
CFIN
► Reflect MU reorganization in IN3
► Concept for Central Finance as Real Estates home base/ or A400M
► Optimization of MDG-F functionalities
MDG-F ► Additional company codes to be interfaced

Release Upgrades in 2017 for

► SAP LT Replication Server 2.0 from SP10 to SP13
► SAP Portal from NW 7.31 to NW 7.5 SPS08
► SAP BI to NW7.51 SPS02
Release
management Upgrades starting in Q1/2018
► Application Platform from SAP S/4 HANA 1511 to 1709 -> Done
(+ Upgrade to MDG 9.1 + SAP Kernel Upgrade from 7.21 to 7.49 + Fiori 2.0) -> Done
► SAP Gateway from FES 2.0 on Oracle to FES 3.0 on SAP HANA (to support Fiori 2.0) -> Done
► SAP Solution Manager from 7.1 SPS 15 on Oracle to Release 7.2 SPS05 on HANA -> planned 11/2018

► UX reporting enhancements ( e.g. Lumira 2.0 ) and leverage new FIORI Apps (FIORI 2.0)
UX / Reporting ► Airbus Group Tools feeding ( IFRP, FACTS+, ICART ) -> shut down ERP interfaces
► Leverage SAP Analytics Cloud / Digital Boardroom

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Phase III: Future Evolutions / Opportunities ►►►►►

Digital Boardroom Analytics

S/4HANA
Central Finance
Engines
Centralized
Financial Processes
► Integrated Planning Application
► Central Processes in AR and AP ► Masterdata, transactual data and planning data
S/4

S/4 BPC
CFIN ► Finance Data Hub for central Real Time Data
Central consolidated in ONE single system
Processing
► Centralizing Closing & Reporting Procedures Finance S/4BPC ►
►
What-if Simulations
Aggregated & Detailed Plan/Actual comparisons
HUB ► Universal Journal as single source of truth
► S/4HANA CFIN as platform for a varity of
business processes all covered in one system
Apps ►
►
Top-down and Bottom-up Planning
Integrated Consolidation Solution

Source systems:
Fiori & Mobile Devices
SLT ►
►
Realtime Data Replication
Data Filtering
ERP 1
► SAP (any release)
► non-SAP systems

SLT
► Data Enhancement ► Future system (M&A)
► Field Extensions
► Data Transformation ERP 2
► Extract, Transform, Load ERP n

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►►►►►
S/4 HANA Strategic approach: ERP Roadmap
Program
 Business transformation & system consolidation

Template Specifics

Implement an AD
wide template
upfront and tackle
different business
types along the
migration path

Entire solution governed by one team

SAP S/4HANA Standard as golden rule

 ERP Roadmap was endorsed as landscape simplification project and has now to be turned into a full business
transformation program to support AD transformation / harmonization on operational level.

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 Transformation Approach – following business / IM priorities

 Definition/Implementation of AD wide template will

involve stakeholders cross AD and therefore is very
time consuming.
 Also the business types of the first migration candidate
(system?) must be implemented before any entry into
service.

business / IM
priorities

Eurodrone (dev phase) requires

Commercial ERP by mid of 2019 ! ! (System) consolidation
IM cost savings
HANA Migration by 2025

ERP Program - Executiv SteerCo

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 ERP Architecture
Business & Process Integration View
• Cloud based standard SAP, template
based system, for all non-core countries
• Replication of relevant master data
IP3 -> Public SAP Cloud
• Replication of FI/CO Results IE3 -> IP3
• Central MySupply for Airbus DS for:
• General Procurement (indirect orders)
• Airbus DS Procurement (direct orders)
• eCatalogue and approval

• Full ERP capabilities & Integration for all

core countries within the „international
restricted zone“
• Central Financial processing & closing
• Replication of Master Data CFIN -> NEO
• Full ERP capabilities for all core countries
working in „National restricted zones“
• Transfer of FI/CO items NEO -> CFIN

ETL – Financial Reporting

NEO & International (incl. CFIN)
International (incl. CFIN)

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 ERP Roadmap – Deployment Sequence

2018 2019 2020 2021 2022 2023 2024 2025

Signalis FR
3 SLC: P01 Migration
AiM FR FR

3 SLC: E40 Migration

AD Netherlands (Leiden)
2 ADP Migration
4 Carve-in ENS Spain
(P11) 3 DSP Migration

3NUP UK SAPHIR
1OPAL Transformation
IFRS 15 (DSP)
1SP1 Transformation
4Migration border
security cc into 4289
(DSP) SAPHIR (P11) Migration
4ES
5 HQ Real
3 CIS / Navision ERP by 3 ?
SLC Spanish Navision
2SAPHIR (P11, NFP) Migration FR
Estate
CCs 2020 (obsolescence) ? System
2SAPHIR (P11, NUP) Migration UK
3 AD ERP Tem. Euro-drone 2AD ERP Template Eurodrone Phase 2
Phase 1

2 LM3 Migration CC 51 3 LM3 Migration FUS kicked-off

5 DSP / LM3 / P11
Migration Real Estate
(Client 110), ACMA
Add. requirements
2SAPHIR (P11) Migration GE
As-is SAPHIR landscape

IN3 Landscape
4 TZ Migration IN3 5 DE3 Migration To be MIA Landscape
(others?)
complexity

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high 1 2 3 4 5 low
Customer
 ERP Roadmap – Major challenges
Overall Challenges
► Availability of experienced consultants (S/4 HANA)

► Very tough and fixed timeline with regards to business ambition (harmonisation) and number of systems to be tackled

► Parallel initiatives e.g. PLM landscape / manufacturing execution systems

► Mixture of Agile Approach and Waterfall Approach led to several test cycles and several go-live

Technical Challenges
► Architectural considerations following data various national/international data classification in defence business (High
security environment & Airbus security policies).

► Lean migration approach to be defined / system archiving approach

Business Challenges
► Process harmonisation across different business lines

► Workforce / skills

► Organisational complexity (3 former divisions, group functions)

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Thank you.
Frank Graeve
HO ERP/BI foundation & BRM Finance
Airbus Defence & Space

Willy-Messerschmitt-Straße 1
D-85521 Ottobrunn/ München

Phone: +49 (0) 31795211

Email: frank.graeve@airbus.com
Web: https://airbusdefenceandspace.com