S/4HANA Service a perfect blend between CRM and ERP capabilities

Recently a colleague of my asked me which architecture to use among several SAP service solutions, among them CX Services, SAP FSM, SAP CS and S/4HANA Services, in the same way came up the question ?which is the S/4HANA approach compared to the rest of the solutions?

Let′s start with SAP CX Service, it basically comprises two key scopes, one is C4C Service which is part of the CRM cloud solutions which possess a part of the service core capabilities those ones related to the most used communication channels such as social networks, emails, call centers, chats, etc. ?CX Service provides a fast and dynamic path to customer information at any time or place, likewise, leverage productivity by embedding analytical data through predesigned reports.

Using CX Service in a light-service processes could be the best option for the capturing of requirements, incidents, claims, find a solution, handle the social media posts, ?and others, of course, also it supports more complex processes for the provision of services, such as maintenance planning, service contracts, service orders and confirmation, however, just like its predecessor SAP CRM on premise, it needs an ERP on which the process flows are based like cost analysis, good delivery, inventory handle, external service procurement, billing, etc. In general, CX service fulfils the function of being a front-office to obtain timely information at the time and place required. Nevertheless, there are some processes where CX Service works as a hub, basically a component to orchestrate other SAP satellite components, a couple of examples, those service request open in Commerce, replicated to CX and solved through of service workflow; another good example is the follow up service order to be create and replicated to FSM for the onsite execution.

In the other hand we have SAP FSM within the same line of business, but this solution is very focused to a specific scenario than the previous one by providing to the planners and field technicians with a tool for planning, dispatching, execution and confirm field service activities. SAP FSM is a tool between a front office solution as CX and a back office solution like ERP, since it focuses on those industry processes such as health, public services, construction, maintenance, telecommunications, utilities and so on, where the ?employees or technicians are most of the time doing their work at the customer locations, therefore SAP FSM provides condensed information on the tasks to be executed, teams to visit, required tools and ?spare parts, consumables, and safety checklists and closure of operations field. ??It is good to point out that FSM no longer belongs to CX but SAP EAM solution, thus its scope covers both customer service processes and plant maintenance.

FSM is an application adapted to the nowadays where the services delivery must be fast and now, thus FSM does it through the "uberization" of services by the creation of networks of external collaborators (partners, freelancers, workshops, etc.) that take the requirements and execute the job on the site of the customer install base.

Now is the turn of S/4HANA Service, there SAP merged the best of the old SAP CRM and ERP by integrating it directly with PM/CS and SD modules mainly, and indirectly with other modules. Through such integration SAP provides a seamless solution to support real customer experience in the service process, of course, SAP had already taken a step forward by offering a good customer experience through CX solution, a modern solution with a dynamic interface; however, it always dependent on the ERP processes like accounting, logistics, inventory, and billing to back up the front-office flows, here is where S/4HANA service take advantage because of its core process are already in the ERP, a apart of this provide a user interface based on Fiori apps and “Fiorized” Web UI theme.

SAP has put great effort into capturing the best of on-premises CRM on the ERP integrated, through the following core processes:

·?????? Service order y monitoring (T&M or fixed price) *

·? Service Quotation

·?????? Credit memo processing for service management

·?????? Work in process

·?????? Item relationship

·?????? Revenue recognition (IFR15)

·?????? Convergent invoicing*

·?????? Procurement for service management*

·?????? Solution Order*

·?????? Inhouse repair*

·?????? Contract Management*

·?????? Warranty Management*

·?????? Asset Management: Equipment, Functional locations, counters, measurement documents, Warranty types, serialization, and its integration with materials management.

As follow we will introduce those ones that are core functionalities on the service context:

Solution Order: It is a key functionality that works to trigger subsequent processes from one transaction:?

·?????? Service order

·?????? Sales order

·?????? Project Service

·?????? Subscription item

Solution Order comprise of different Items, so when an equipment is sold a bundle of services and products can be offered in just an object, by example:

·?????? Sales Order: the material to sell (machinery with serial number)

·?????? Service Order: The installation and commissioning service

·?????? Service Contract: A maintenance service contract on the machine either for repairs or preventive.

Whatever the case being, you can have a package of services represented through the different items, such as:

? Consumable items

? Spare part Items

? Labor or operations items

?The Solution Order takes part or extends its functionalities to others packaged solutions such as BRIM processes by creating Subscription Orders (SOM), that one used in Contract Subscription object where subscriptions are based on the right to use or entitlement on authoring products either on demand or recurrent agreed on contract. This solution is linked to another cloud application called SAP Subscription Billing where the life cycle of a subscription, recurring payment rates and prices per use are defined, then this information is transformed into Billing DATA, later it will return to S/4HANA Cloud for being completed with tax data and generate convergent billing finally.

Cloud storage, condition monitoring and analysis of performance are by instance service scenarios where the above solution can fit. Such functionality in combination with S/4HANA Service are useful where the equipment work-state must be track constantly, this condition monitoring and its subsequent analysis performance is used for preventive maintenance actions, so that, to avoid malfunction by triggering maintenance task based on services.

Continue with the scope of Solution Order, it also can trigger project objects for the information systems project′s implementation, here resources from various disciplines, milestones, phases, and deliverables are required, integrated with sales for billing of the times reported over the executed activities (analysis, diagnosis, configuration, development, tests, etc.). ?Above solution is called Professional Service and it is useful to carry-out client projects where specialized resources and tasks are required, we have projects where personalized training must be done to the team of technicians, specialists, and client managers, in this sense the required resources provide training at different levels depending on the functions both in the use of the machines and in the diagnostic, monitoring and control tools or applications.?????????????????????????

Service Contract and Billing plan

Contract Service is a core functionality on any services process, the relevance of this object laid down on the service compliance agreements on attention to requirements, by instance, attention 24 hours a week, supply consumable materials and spare parts based on special prices within the contract, other like the list of equipment or machinery covered by the contract is part the scope.

Price agreement is a key component in contract since they can be transferred directly from the contract to the service orders by direct assignment when service contract determination is active or when a service order is created as a follow-up document in process.? Several options are in place when using pricing, there is the option of being able to assign general discounts, that is, apply massive discounts on all those positions in the service order, for instance.

There are contracts where a bundle of service products includes like parts, expenses, consumables, operations, lists of products, etc., in such scenario the price agreement is based on a fixed price, which the service will be provided regularly, in the same way as the invoicing of this through a Billing Plan which will generate a priori the dates and periodic amounts based on the total contract.

Extension of contract service is possible by activating renewal change process, renewal contract service can be done manually or automatically for a term agreed by both parties, as well as in any renewal process, the adaptation of prices on the products. Cancellation contract procedure is also possible by defining information about the cancellation parties, cancellation dates, and cancellation reasons.

The generation of recurring billing plans facilitates financial administration, so you will have a plan of dates and amounts to be billed in specific periods or even ad-hoc billing when needed.

Recurring services on asset management

Counter-Based Condition Monitoring is a process where the constant monitoring of the equipment/machinery based on meters that feed the maintenance cycles, thus being able to anticipate the preventive maintenance that must be dispatched in the coming dates.

One scenario that customers frequently claim is a system capable of registering and monitoring the condition of the equipment based on meters whose readings are taken manually through:

? Inspections carried out on site (FSM)

? Calibration (on installation or maintenance)

? Repair of other unrelated equipment (corrective maintenance)

? Readings recorded through a self-service portal (Customer Self-service portal FSM)

? Internet of Things for those enabled devices or in which sensors linked to the Internet or WiFi ????are incorporated.?

Precisely, this last component is supported by the Asset Intelligence Network application seamlessly integrated with the SAP BTP, which provide a centralized and collaborative repository to collect and track every equipment information, so that to have an insight into the health of the equipment and predictive malfunction. By using such tools integrated with the maintenance services the customer will have a holistic of their assets.

?The readings documents feed the processes of Recurring Services functionality or what is the planning of maintenance based on services flow. ?In a service-based maintenance planning scenario an example of the key process to consider are:

? The creation of STANDARD job templates, that is, a record of operations, subtasks, components, and tools depending on the type of equipment/model/year/manufacturer and others.

? Price agreements where, for a period, clients guarantee prices on those recurring or repetitive services in different processes and equipment, competitive prices on parts and consumables required in the execution of maintenance tasks.

? Coverage of the installed base of customers, which equipment, facilities, machines, vehicles, and others are covered within the agreements.

? Agreement of service levels, assurance of the delivery of services in defined times. These times are defined based on the experiences obtained in previous executions, as well as operation guides, skills, and availability of tangible resources in each of its centers.

In-house repair (multiple equipment)

Some clients ask for the modernization or major overhaul of their equipment to extend the asset's life cycle, thus revaluing the asset and maintaining its level of productivity. Going beyond, the client wants to be able to continue operating while the machinery is being repaired, and before any repair, make a diagnosis and quote the service. In a complex scenarios field service comes up as a need where the technician must provide on-site service on the customer′s remote location or even procure an external partner, ?are all the above ones possible?

?This type of requirement can be perfectly configured within an In-house repair scenario where the machines or equipment to be renewed or repaired are taken as input, while at the same time rented equipment is provided, so as not to affect operation. In house repair provide a such functionality by taking apart components or pieces of equipment to examine it, replace or repair, a good example it is an overhaul process where the machine is disassembled on components and each of them is linked to its own order and service team.

?These large works require different skills present in the same workshop or set of workshops, which must coordinate the execution of the services dependent on the component, thus the workshop services must have the capacity to divide the components by specialties, thus being the In-house order should work as an orchestrator between:

1. Workshops/technical units

2. Service groups

3. Operations/components

?Each technical service unit will develop a set of repairs/services with specific operations (Service Order templates) based on the supplier's operation, repair and maintenance task that can be perfectly modeled in the solution.

Repair quotation is elaborated based on the diagnosis stage before planning the repair orders, so a Fixed price or T&M pricing for the overall process is offered and so, the customer can make a better projection of his budget.

Some variants can apply during the diagnosis stage, one of them if the component has not solution, in this case a sales quote for a new or refurbished product can be offered, if that is accepted then a sales order and delivery process is executed, finally billing and invoice process.

In those cases where the customer locations are far from the main repair plants, we have a business model in combination with FSM and In-house repair in S/4HANA to support their operations. Whether our customers need an on-site evaluation and even repair it, we can design a process where the service order is created and the replicated to FSM, so it could be scheduled and dispatched to the on-site technicians, in this manner FSM works as an extension of S/4HANA service, more ahead FSM will confirm back to S4 all the times, consumables and parts used on the field services.

?As an aggregated value to our client, we will enable to our customers of a tool for Scheduling and Dispatching services, this FSM′s functionality is not only for scheduling field service order but also In-house orders, so to have a general insight into the activities assigned to all technicians and avoid task overlapping.

Procurement for Service Management

Some clients need to assist their customers on remote sites where no local resources are, then there is a scenario in S/4HANA service where we can integrate our collaborators, partners, or freelancer resources.

Above scenario can be solved by using external procurement for service order or In-house repair, in that case a Purchase requisition and subsequent purchase order is created as of service line item, it is approved through a workflow to follow up Service Entry Sheet actions after repair execution, and so on. Above scenario is cover by a standard process, but we come up with another idea by using the Crowd service ′s FSM functionality to assign service order to independent technician that are near to the customer places and fit the skills required for the job, so to speed up the service delivery and loyalty retention, now our client feel more relief about the services provider.

?When legacy systems are in scope and the OEM places service calls for a product with a manufacture fault that requires immediate replacement, it is necessary to integrate said platform with our S/4HANA system.? Using the OData services within S/4HANA is possible to cover such scenario, service order API are exposed to external communication. There is a huge list of API to be used in an asynchronous or synchronous inbound call through SOAP service, in that way a Service Order can be created and updated in the system by making API calls from an external system.? Go beyond, we can make an entirely process flow by query the business partner master data and his installed base on functional locations/equipment’s to validate status a last service orders, even more check if a service contract exist before creating an in-house repair for parts replacement in their system.

In short, we have several options to deploy the integration with third-party applications.?

·?????? ODATA: REST APIs allow a web client to publish and edit resources defined in a data model using HTTP messages.

·?????? SOAP: XML message protocol and HTTP to communicate data regardless of the operating system where a program is running.

·?????? BAPIs is the main method through which custom code and third-party applications interact with SAP products.

·?????? DOC is a data file structured that is exchanged between two systems that know how to interpret the data.

All extensibilities proposed on the above scenario can be designed and developed through SAP Business Technology Platform which poses a huge range of capabilities for building and hosting applications, also integrations with no SAP application are this case.

Customer service platform

The customer service department is generally an area where customer requirements are captured and, in parallel, tasks are generated, coordinated and distributed to the different organizational units that help to resolve the reported cases, they need to have a platform for the sales and service agents that allows handle those inquiries and complaints about the products and services acquired by the end-customers, this tool must enable to model a business flow based on the service organizational structure, assign task, track the SLA and coordinate the technical visits of the technicians to the sites or start a process of repair, maintenance or simply contract coverage. One reason for having such a scenario is to be able to structure all the interactions with your customers to later obtain reports that measure the customer′s satisfaction. Such a solution must include the capture of information from all service channels, including social networks.

?The above scenario can be cover by using a Service Request as the transaction to monitor and fulfill requests for service required from the customers, so we can measure and evaluate the quality of services. As we know S/4HANA Services has the old CRM on premise as the core of its technical model and processes, the service request is a transaction inherited from the latter, so some capabilities are available like multilevel categorization, templates to speed up the interaction, SLA, checklist, or step-by-step task to be assigned to a different employees or areas that participate in the services resolution, and other functionalities. Interaction and integration between business unit can perfectly covered by using the service organizational structure, another functionality inherited from the old SAP CRM, on this we can have the Services Team along with the services members or technicians

Having a complete insight of the service and sales organization alongside their members and functions is essential for the transactional process in S/4HANA Service. This object will be useful not only in the S/4HANA service transactions but even in those satellite applications like SAP FSM and C4C Services. Just precisely, my client has a department that already has C4C Service for commercial process, in this case the proposal is to have C4C as a customer-facing front office integrated with S/4HANA service, keeping the same features of the S/4HANA service request, even handle the social networks post in services, creating task, assigned responsible and activities, ?and also trigger service core process in S/4HANA when necessary.

?Recently SAP introduced the add on call Agent Console to be used on C4C which provide a unique point of interaction, from where the service agent can identify any customer or contact and system provide an entire work environment with all detailed customer information, check out all the ticket created and its statuses, registered products, inquiries or complain, give a support for product operation, enables multi-channels communication to interact phone, email and chat, and even has the option to integrated with S/4HANA Service to create Service order in such scenario when is require, so that this could be a better scope to take into account for a better customer experience.

Warranty management:

Along with the detailed customer information to follow-up process like service repair, clients demand to have an overall insight of the customer′s installed base and the warranties attached to them, not only the master data but they want to know how to handle a component defect in a middle of the service process, is it possible to design a solution for such scenario?

?Key elements of every warranty claim process are:

·?????? Equipment warranty master data, which keeps the validity time, start-date and end-date for the customer warranty equipment assigned, also the warranty type: customer or vendor.

·?????? Customer data, equipment objects are related to a customer, also pricing depends on the customer, and finally through this the accounting determination when posting.

·?????? Condition records based on material, labors, etc., items to be used in a claim process.

?All the above elements make up part of the S/4HANA Service solution along with PM and FI master data for customer, equipment, and pricing records.

?Warranties could be enabled at the order execution stage, so that determinate those parts or components subject to warranty by the suppliers or even the service company.? By instances, when a diagnosis task or direct repair is doing over the whole piece and some components (equipment hierarchy) needs to be replaced due to manufacturing defect, or bad installation procedure; no matter the case, the service company will provide a solution by assuming internal costs, afterwards a warranty claim process will be trigger to the supplier or EOM for the reimbursement or replacement costs of the damaged part.

Of course, there is customer facing process where a claim is open against manufacturing defect or even claim for a bad process of repairing, after validation of the warranty terms and conditions a financial process is started to credit the customer by the total spare parts, labor, and miscellaneous items.

Next blog I will expose some features in the S/4HANA Service and maintenance world, along with the SAP EAM integration, go beyond using FSM and SAC as the key component for the analysis of service execution.