From Thinking to Doing IoT as an Enabler for Vision 2030

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1 From Thinking to Doing IoT as an Enabler for Vision 2030 Raj Singh Director Operational Excellence IOT & Digital Supply Chain - Center of Excellence CUSTOMER

2 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Public 2

3 SAP s Vision for an IoT Platform - It s the fundamental Layer Every Thing is Connected Customers and users are more informed and empowered 24/7 Data availability Every Thing is Intelligent Machine Learning Artificial Intelligence 3D Printing Predictive Processes Products are Smarter Every Thing is in the moment Online Ordering Every Business Process needs to be connected to everything Every Thing is Connected Every Thing is Intelligent Every Thing in the Moment Every Business Process to Every Thing 2-Hour Delivery Real-Time Decisions Predictive Analytics 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Public 3

4 SAP Leonardo: Integrating today s transformational technologies Internet of Things Big Data Machine Learning Analytics Connecting things with people and processes Connected products, assets and fleets to drive the Industrial IoT Connected infrastructures, markets and people to enable the Internet of Everything Manage vast amounts of big data Distributed storage and computing Real-time insight discovery Insights embedded into business processes Intelligence enabled by learnings from data Intelligence embedded into enterprise applications Integrated intelligence to solve common business challenges Train and deploy deep learning models Insights that enable transformative actions All-analytics across your business Embedded machine learning New processes and applications based on insights Design Thinking Data Intelligence Cloud Platform Blockchain Innovative, engaging methodology Uncover the opportunities for your digital transformation Use BUILD to ideate and create rapid, interactive prototypes Understand user needs Put data into business context Trusted, real-time benchmarks Decision-making scenarios Data asset monetization Foundation for SAP Leonardo Common foundation across applications and technology (In-memory) real-time data management Integrates things, people, and processes Blockchain services embedded into business applications Increased trust in peer-to-peer transactions Full visibility of goods provenance and history of ownership Increased auditability and decreased fraud 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Public 4

5 Internet of Things Platform - A Logical View 3 Integrate, Analyze Build Predictive Maintenance Smart Product Solutions for rapid time to value Smart rules/analytics/actions across heterogeneous device types Output based monetization Adaptive Logistics Application Management Data Management 1 2 Secure Futureproof Apps: Separate Device Specifics from App Data Model Adaptive, scalable, secure, and reliable streaming ingestion & analytics in the cloud and at the edge Message Management Connect & Manage Rapid machine connectivity and management across multiple IoT sensors/devices legacy, new & custom Remote Device Management 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Public 5

6 The digital innovation system that enables you to innovate at scale to confidently redefine your business SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER PUBLIC 6 6

7 Design Thinking Connected Data Integration Collaboration Mobile Big Data Business Process Innovation Intelligently connecting People, Things and Businesses Machine Learning APIs Natural Language Real-time Analytics IoT Networks Microservices Experiences 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 7

8 SAP Leonardo IoT Innovation Portfolio SAP Leonardo IoT Bridge Connected Product Connected Assets Connected Fleet Connected Infrastructure Connected Markets Connected People Partner Applications Product Insights Fixed Assets Insights Mobile Asset Insights Building Insights Market Insights People and Work Goods and Equipment Manufacturing Execution Logistics Safety Construction Rural Areas People and Health Supply Networks Manufacturing Networks Logistics Networks Energy Grids Urban Areas People and Homes SAP Leonardo IoT Edge Computing SAP Leonardo IoT Foundation SAP Cloud Platform 2017 SAP SE or an SAP affiliate company. All rights reserved. 8

9 SAP Leonardo IoT Accelerators Value Proposition SAP customers should set aside the time to study SAP Leonardo carefully as it may be the catalyst they have been waiting for to kickstart their own entry into enterprise IoT. Andy Mulholland, Constellation Research Jumpstart the IOT Journey Reduce Risk for with fixed price and fast deployment in 3 months Deliver a functional pilot to accelerate your digital journey SAP commitment for customer success beyond pilot - delivers business case and deployment roadmap 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 9

10 Departmental SAP Leonardo Scale From small departmental projects to enterprise-wide digital transformation Scale to your project Scale at your pace Leonardo-optimized applications integrating next-gen capabilities directly into existing systems and processes Industry & LoB Innovation Accelerators delivering fixed-price software & services bundles addressing specific use cases Open Innovation services providing customized solutions to your specific business problems 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 10

11 SAP Leonardo Industry & LoB Innovation Accelerators SAP Leonardo Accelerators Industry & IOT for LoB - One Family DESIGN THINKING Industry / LoB knowledge Software Express Edition Service Fixed price bundles Target common use cases for a 70-80% fit Timeline to value in weeks not years Retail Consumer Products Discrete Manufacturing Chemicals Travel and Transportation Utilities Sports & Entertainment Assets Logistics Store* Inventory* Shelf* Cold Chain* Assets Logistics Manufacturing* Cold Chain* Consumer* Logistics Service & Assets Spare Parts Spare Parts Service & Assets Logistics Service & Assets Venue Team Fans* Predictive Maintenance and Service Asset Intelligence Network Connected Goods Global Track and Trace Distributed Manufacturing Vehicle Insights Digital Manufacturing Insights IoT Foundation and Edge 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 11

12 SAP Leonardo IoT Accelerators Customer Engagement Process Customer Need Explore Discover, Design & Prototype Deliver Executive Engagement Value 1 1 Day Leonardo Innovation Services - Express Fast Engagement Cloud Solution + Services 2 2 weeks Cloud and Services Contract 3 6 weeks Functional pilot Scenario Innovation Design Architecture Accelerators /Software & Services Value Assessment* Match 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 12

13 SAP Leonardo IoT Accelerator Packages SAP Leonardo IoT for 1. SAP Predictive Maintenance and Service 2. SAP Asset Intelligence Network 3. SAP Connected Goods 4. SAP Global Track and Trace 5. SAP Distributed Manufacturing 6. SAP Vehicle Insights 7. SAP Digital Manufacturing Insights 8. Line of Business Asset Management 9. IOT Foundation 10. IOT Foundation and Edge Services SAP Leonardo Accelerator Packages Provides Scope of Promotion Innovation Services 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 13

14 Inspiring the Next Steps Customer Successes and Learnings

15 SAP Cloud Platform Usage scenario: Internet of Things Fully managed platform, with device and connectivity management, data management, application development, and more Enables our customers to connect ANY machine or device of ANY protocol Build great IoT applications fast and efficiently to drive scale and consistency and achieve value faster Intelligently Connected with the help of SAP Cloud Platform IoT we can onboard and manage our SPS Robots from Mitsubishi Electric in a fast and efficient way 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER This presentation and SAP s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement 15

16 SAP Cloud Platform Usage scenario: Internet of Things With the help of SAP Cloud Platform Internet of Things we can onboard and manage our SPS Robots from Mitsubishi Electric in a fast and efficient way. In particular the immediate visualization of the sensor data without any coding, the secure communication from devices to the cloud and also tight and smooth integration of relevant data into any backend application via the SAP Cloud Platform are key advantages of the IoT service. Thomas Lantermann Senior Solution Consultant FA EMEA, Factory Automation, European Business Group, Mitsubishi Electric 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER This presentation and SAP s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement 16

17 Customer Use Case Hilti is the leading company in designing leading-edge technology, software and services, which power the professional construction industry. With SAP Application Enablement Hilti differentiates by offering new digital services to its customers, getting insights into customers usage patterns and subsequently being able to innovate new business models all that integrated into their core business systems. Benefits Hilti enables their customers to realize real-time transparency on last-known locations of assets. Assets lost or stolen gets minimized by geo-fencing based alerts and notifications. Based on real-life evidence Hilti is able to improve machine designs. Continuous revenue streams from new services will be realized SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER This presentation and SAP s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement 17

18 Customer Kaiserwetter is an independent, internationally operating service provider for the management of wind and solar assets of energy companies and investors. Use Case The Kaiserwetter service portfolio combines classic, technical and commercial asset management with digital integration of all processes and data. Therefore Kaiserwetter wants to integrate IoT data from the wind and solar assets with the according data of the digital core to offer financial services to their customers. Benefits Kaiserwetter brings together the physical and digital world. This allows customers to maximize the energy production of wind and solar parks and to increase the efficiency of the resources used. Raw and aggregated data is used for analytics which offers wind and solar park operators a high level of efficiency and performance potential SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER This presentation and SAP s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement 18

19 IMA: Roadmap to Predictive Maintenance PUBLIC Partner logo

20 Machinery Producer - Pains and Wishes 90% of CEOs believe the digital economy will impact their industry, but less than 15% have a digital strategy * Differentiate from Competitors Providing post sales services: System Monitoring and Proactive maintenance Crease customer intimacy Transparency on machine health status and behavior Reduce maintenance Costs Changing Maintenance Strategy: Moving from - Corrective Maintenance Approach To - Time Based Maintenance Approach To - Condition Based Maintenance Approach To - Predictive Maintenance Approach R&D Support new product design by getting insight from real life machine information SLA (OEE) compliance Machinery producer Goals Implement New Business Model Selling Post Sales Maintenance Services Machinery Pay Per Use 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC * Sources: Embracing Digital Technology MIT Sloan and CapGemini, 20

21 IMA at a Glace IMA is the world leader in the design and manufacture of automatic machine for the processing and packaging of pharmaceuticals, cosmetics, food, tea, coffee and tobacco. More than 5,400 employees, about 2800 of whom based abroad (YTD) In ,444,7 million worldwide sales, more than 88% outside Italy World wide sales and services network More than 1,600 patents worldwide Estabilished in 1961, IMA S.p.A. has been listed on the Milan Stock Echange since 1995 and in 2001 joined the STAR segment Dairy and Convenience food sector Pharmaceutical sector Coffee Packaging solutions 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 21

22 IMA Digital Transformation Vision, Mission, Value and Goal Mission Goal BE Moire Digital Vision Efficiently satisfy customer requests Anticipate customer needs Trust Team work Experience Value Implement Added-Value IoT services, making sense of data 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 22

23 IMA IoT Project Roadmap Solution Ideation & Vision Rapid Prototyping Pilot Implementation Productive implementation Next innovation Starting Project Use case definition Platform selection Implementation partner selection Pilot implementation Project roll-out c/o final customers Diagnostic data analytics phase: Reporting and analysis Prototype Predicitive data analytics phase: Full technology solution 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 23

24 IMA & SAP Leonardo SAP Edge Services Compute Storage Business critical functions SAP Cloud Platform Internet of Things Device lifecycle management IoT Gateway for data pre-processing IoT protocol support SAP IoT Application Enablement Digital twin builder IoT app development & mashup Data management Plant IMA Dashboard Sensor embedded things SAP IoT Gateway Edge Kepware INTERNET SAP Leonardo IoT SAP Leonardo IoT Foundation IoT service SAP Web IDE Cloud Platform BDaaS Data Ingestion Pipeline IMA Dashboard SAP IoT Application Enablement Your IoT Data HOT / WARM / COLD 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 24

25 IMA Solution - Logical View 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 25

26 IMA Solution - Logical View THE OUTCOMES Asset Availability: Reduced Unplanned Downtime Improved OEE (Overall Equipment Effectiveness): Increase Maintenance Revenues 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 26

27 IMA The way forward SAP Leonardo Technologies 2020 in IMA 2019 in IMA Data Intelligence Analytics Next steps for IMA Blockchain Internet of Things Machine Learning Big Data DONE SAP Cloud Platform Data Management Multi-Cloud Infrastructure Microservices Open APIs Flexible Runtimes Integration SAP HANA SAP Data Hub SAP Vora Other SAP Open Source Storages SAP AWS S3 SWIFT Hadoop 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 27

28 Key Takeaways and Next Steps IoT as enabler for the 3 main value drivers New/Improve Business Processes - New Business Models - New Work Environment SAP Leonardo IoT Applications Connect things with people and processes SAP Leonardo IoT Accelerators Think Big, Start Small Move Fast! 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 28

29 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 29

30 Thank you! Raj Singh Director Operational Excellence IOT & Digital Supply Chain - Center of Excellence raj.singh01@sap.com