BUSINESS REIMAGINED WITH IOT

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1 BUSINESS REIMAGINED WITH IOT Dr. Tanja Rueckert EVP LoB Digital Assets & IoT

2 REIMAGINING THE WORLD WITH IoT Smart Insects and IoT 3D Printing in Space Station

3 IoT will be one of the most fundamental aspects of the digital transformation THE DIGITAL ECONOMY IS TRANSFORMING ALL INDUSTRIES INCLUDING SAP $4-11 trillion Potential economic impact per year by % of business processes & products will be reinvented, digitalized or eliminated by 2020

4 From the traditional Value Chain the digitized Value Network Cusmer Network IT Project Network Manufacturing Network Plan Procure Produce Deliver Supplier Network Asset Network OT Logistic Network Aumated and accelerated processes Reduced delivery times

5 NEW CONSUMER BEHAVIOUR Personalized Products Shopping Aumation Online & Offline Social Influence Mobile Payments Consumer driven economy Outcome-based, new business model Business process change Data driven decisions Aumate what can be aumated IMPACT ON BUSINESS

6 IMAGINE A CONNECTED AUTONOMOUS WORLD EFFICIENCY LED MODELS NEW BUSINESS MODELS

7 From Outcome with SAP IoT 1. Live insights 3. Optimize processes IoT Applications Condition moniring, location, environment, usage, consumption 2. Predictive analytics Equipment health, remaining lifetime, demand and supply forecast, time of arrival Lower maintenance cost, higher efficiency, reduced waste, fewer claims, faster response, shorter cycles Processes IoT Application Platform 4. New business models Usage-based pricing, product-asa-service

8 E2E SAP IoT Solution Portfolio Connected Logistics Connected Vehicles Connected Manufacturing Connected Assets Connected Consumer Digital Farming Smart Cities IoT Foundation and Application Services (incl. machine learning, predictive algorithms) SAP HANA Cloud Platform (incl. Big Data Hub) / SAP HANA platform IoT Connectivity, Security and Edge Computing (incl. Plat. One)

9 MANUFACTURING IS UNDERGOING A MASSIVE CHANGE, WHICH REQUIRES SIGNIFICANT INVESTMENTS IN INDUSTRY 4.0 DIGITAL Robotics & 3D printing MANUFACTURING Wearables, AR, VR, MR 66% of manufacturers plan increase their investments in IoT-enabled products 50% of manufacturers will require significant technology upgrades

10 SAP Distributed Manufacturing Sapphire Orlando May 2016 TechEd Las Vegas Sept 20th, 2016 Global Reach The 3 Modules of the Solution

11 Approval & Collaboration Module Part Specification 1 Quality Collaboration 3 Design Collaboration 2

12 The Solution in Production Manufacturer SAP Distributed Manufacturing On-Demand Manufacturing Logistics Network Cusmer

13 SAP IoT Asset Intelligence Network Manufacturer & Service Providers Service Provider Utility Company Pump OEM Mining Company Designs & Drawings Op Instructions Product Training Operar Usage Information Consume Publish Consume Publish Failure / Incident Data Design Recommendations

14 FROM REACTIVE BEHAVIOR TO PROACTIVE DECISION MAKING WITH PREDICTIVE MAINTANANCE & SERVICES Predictive Condition based Preventive Reactive Maintenance on a regular intervals React on predefined conditions and events Predict when maintenance should be performed SAP ASPIRES TO MAKE ALL ITS ENTERPRISE SOLUTIONS INTELLIGENT AND HELP CUSTOMERS TO LEVERAGE THEIR DATA BY MACHINE LEARNING Maintenance after failure

15 SAP Connected Goods enables companies Track, Monir and Manage large number of connected assets Big data / Machine Learning Benefits Optimize asset availability and utilization Ensure srage life of perishable goods for cusmer satisfaction and loyalty Instant notifications and quick reactions critical alerts Capabilities Visualize asset information with interactive map view Monir sensor information, such as invenry level Define and prioritize alerts based on flexible rules Integrate with work order management system trigger action

16 IOT & DIGITIZATION ARE TRANSFORMING INDUSTRIES TO RUN LIVE AND SIMPLE 95.7% faster load- 100% flood reduction 100% greater speed of 8-10% reduction in forecasting processing after 3 days of heavy rain information retrieval maintenance costs 2% lower annual speed 100% Reliability of data in asset maintenance sent ERP 30% warehouse space 19% increased net margin reduction 30% reduction in order 7-12% reduction in overall 5min reduction of waiting creation time 23% improved Overall costs time per Truck Equipment Effectiveness

17 SAP IOT CONNECTING THE UNCONNECTED & DIGITIZING THE ANALOG SAP HANA Platform Digital Core Machine learning Artificial Intelligence WORLD-CLASS POWERFUL CUSTOMER BASE BUSINESS PROCESS AND INDUSTRY ECOSYSTEM TO READY-TO-DEPLOY EXTEND AND COMPLEMENT EXPERTISE COMBINED WITH GREAT TECHNOLOGY STANDARD; INTEGRATED E2E SOLUTIONS Security

18 How Start?... Areas where IoT generates the highest value Look at the E2E vision IT Infrastructure Accelerates Start SMALL, think BIG The Time is Now

19 REALIZE YOUR IoT OPPORUNTIY Learn more about how SAP IoT can help you get things outcomes Visit:

20 Capgemini & SAP Digital Transformation Partnership in Discrete Industries Digital Cookbook Digital Portfolio Digital Transformation Strategy Execution for Cusmers FAST Digital 4 for Discrete Industries 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 21

21 SAP EXECUTIVE SUMMIT OCTOBER 27, 2016 NEW YORK CITY Business Reimagined with IoT: Go Beyond Connectivity Become a Live Business 2015 SAP SE or an SAP affiliate company. All rights reserved. 22

22 SAP EXECUTIVE SUMMIT OCTOBER 27, 2016 NEW YORK CITY Business Reimagined with IoT: Go Beyond Connectivity Become a Live Business 2015 SAP SE or an SAP affiliate company. All rights reserved. 23

23 SAP EXECUTIVE SUMMIT OCTOBER 27, 2016 NEW YORK CITY Business Reimagined with IoT: Go Beyond Connectivity Become a Live Business 2015 SAP SE or an SAP affiliate company. All rights reserved. 24