DIGITAL INDUSTRY INNOVATION MAPS INDUSTRIAL MACHINERY & COMPONENTS. Digital Transformation Posters. Digital Industry Innovation Maps

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1 SAP LEONARDO INNOVATON SERVICE SHOWROOM DIGITAL INDUSTRY INNOVATION MAPS INDUSTRIAL MACHINERY & COMPONENTS Digital Transformation Posters Summarize your digital transformation with S/4HANA on one page Starting with the digital priorities, taking you through the value map showing key value drivers and how SAP S/4HANA fits into a full industry end-2-end solution Digital Industry Innovation Maps Help you to understand the coverage of SAP Model Company in your industry Present you the SAP Model Company that fits to your innovation project 2017 SAP SE or an SAP affiliate company. All rights reserved. 1

2 They pursue five key initiatives which require along Industrial Machinery & Components companies play a key role in the digitalization of businesses across all industries: 1. They provide the digitally enabled machinery and equipment so that other companies can innovate their business - driving topline revenue 2. They are spearheading innovative themselves leveraging digital of the equipment they use - achieving bottom line cost savings Aftermarket Service Download this Poster Customer centricity Co-innovate with customers Deliver product innovations resulting from actual equipment use and incident reports Collect structured requirement based on interactions with customers and design partners Contextualize customer engagement Engage omnichannel solution selling Organize and empower sales teams Foster demand-driven, collaborative supply Enable on-time delivery and advanced availability-to-promise Adjust production orders with greater flexibility based on customer priorities Foster an agile and responsive manufacturing network Track and trace individual Organize and empower teams Flow customer information across channels Personalize end-to-end service parts Access a service knowledge database Find and contract talent with specific noncore skills Drive new strategies outside the current business scope Use simulation and analysis to evaluate financial implications of strategic business choices Manage the customer portfolio strategically Maintain a pipeline of top talent Attract and secure top talent Work with customers through flexible contracting Enable social collaboration among teams Serving the Segment of One Modularize product concepts and wellstructured product families Use platform models across product families Select engineer-to-order during the sales configuration process Personalize marketing and sales Segment customers with sophistication Configure and manage variants such as costing Plan sales and operations with flexibility Produce for a lot size of one with high asset Support responsive material requirement utilization and optimal set-up times Integrate seamlessly sales orders with Promote efficient and flexible internal and specific parameters with the shop floor external logistics and supplier Give electronic work instructions collaboration Offer tailor-made services Deliver an equipment-specific service portfolio Gain full transparency into equipment lifecycle information Enable economies of scale and flexible call orders with strategic and agile global supplier-network Onboard alternative suppliers with flexibility Analyze profitability instantly across multiple dimensions such as product groups, customers, projects, profit centers, and plants Identify, forecast, and address skill gaps Onboard and train employees quickly and seamlessly Digital smart Adopt a systems engineering approach that includes mechanical, software, and electronic Embed the technology foundation for equipment Enable collaborative solution and value selling Generate leads through predictive product replacement and precise segmentation Track digital components Actualize efficient replenishment strategies Enable 3D printing for spare parts Install and manage in-product software Support advanced testing and connectivity Provide services for digital smart Enable a feedback loop in internal business Connect digital in the field with an equipment network Execute procurement strategies for 3D-printed service parts Bundle third-party service with Include payment models for digital services in product calculations and financial reporting Manage and help ensure digital rights compliance Train and certify workforce on new digital technologies Work with universities and external entities in a flexible manner Engage in knowledge sharing and community building Digital supply chain & smart factory Integrate manufacturing engineering with electronic and manual of bills of materials Visualize manufacturing digitally based on harmonized product data Forecast sales precisely and reliably Align supply chain and sales Route customer orders directly into the factory as production orders Achieve real-time end-to-end visibility into supply chain Plan demand and supply flexibly Integrate material from shop floor to warehouse Integrate vertically up to the customer Support machine-to-machine integration Innovate plug-and-produce Benefit from a digital twin of the manufacturing facility Collaborate on equipment data through a network Handover as-built equipment information seamlessly to aftermarket services Produce service parts by 3Dprinting Allow contractual enablement of global supply chains with multi-tier suppliers Automate and simplify the integration of material suppliers Optimize working capital Manage increased financial risks associated with highly flexible supply chains and manufacturing operations Empower employees to make decisions in real-time Manage external contractors with greater flexibility Enable agile work teams Servitization & models Calculate actual equipment use Offer digital services with data platforms Support equipment information sharing along Support omnichannel solution selling Sell digital services Manage contract value Charge based on Collaborate with customers and suppliers Improve demand sensing and automate replenishment Optimize service parts and logistics Deliver on the highest quality requirements Avail manufacturing parameters to service Distribute product-use information for production Deliver -based services and as a service Monitor remote conditions and Provide predictive services Innovate digital value-add services Augment the workforce by integrating contingent workers efficiently Deliver the highest quality in the shortest time through service-parts collaboration and manage the risk of assets that are operated for customers through a product-as-a-service contract Allow financial controlling of -based service contracts Procure and manage contingent labor and services for an optimized service delivery across regions (17/01) 2017 SAP SE or an SAP affiliate company. All rights reserved. Typical Benefits from S/4HANA * Suite Products Enterprise New revenue: % cost: % Revenue targets met by production: % SAP S/4HANA Engineering control center Visual enterprise Product lifecycle costing Constraint Innovation Cloud for product stewardship Enterprise portfolio and project Commercial project Compliant product lifecycle Product development and project control Production engineering Variant configuration Embedded software On-time delivery: % Inventory levels: % Customer satisfaction: % SAP S/4HANA Sales and SAP S/4HANA Marketing Price and margin Heavy equipment Social collaboration Sales Marketing Commerce Configure, price and quote Billing Sales and Billing and revenue innovation Order and contract Sales order fulfillment cockpit User experience and interface solutions Settlement Integration wit SAP Hybris solutions Cost due to stock-outs: % Days in inventory: % Total logistics cost: % SAP S/4HANA Integrated business Response and supply orchestration Supplier network collaboration Collaborative supply chain Service parts Transportation Extended warehouse Advanced order promising and ATP Constraint-based production Production scheduling Inventory and basic warehouse Production Real-time inventory Multilevel goods receipt Total manufacturing cost: - 10% cycle time: - 10% Scrap value: - 25% SAP S/4HANA execution integration and intelligence Plant connectivity Visual manufacturing planner Product structure synchronization Production orchestration and execution Enhanced material requirements Quality Revenue leakage: - 7-9% Service delivery cost: - 4-5% Cost of noncompliance: - 4-5% SAP S/4HANA Service Asset intelligence network Predictive maintenance and service In-memory computing cloud platform Knowledge central Service Commerce Billing Service Service master data Service parts Service agreement function cost: % Worker acquisition time: % Days payable outstanding on targeted spend: days SAP S/4HANA Spend Visibility Collaborative Sourcing Collaborative Procure-to-Pay Collaborative Commerce Collaborative Operational purchasing Collaborative sourcing and contract mgmt.; Invoice and payables mgmt. Supplier analytics Days to close annual books: Budgeting & forecasting cost: % Audit cost: % SAP S/4HANA Business process consolidation Digital boardroom Shared services framework Financial supply chain Financial and analysis Accounting and financial close Treasury Receivables Invoice mgmt. and accounts payable Accounting and closing operations Accounting Cost Profitability analysis Lower time and attendance function cost HR full-time equivalents: -44% SAP S/4HANA HR Core human resources and payroll Talent Time and attendance Human capital analytics Time recording *) Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA and LOB/cloud. Public - A For information or questions send to georg.kube@sap.com

3 SAP LEONARDO INNOVATON SERVICE SHOWROOM DIGITAL INDUSTRY INNOVATION MAPS INDUSTRIAL MACHINERY & COMPONENTS What s in for you You can easily identify functionality provided by SAP Model Company in current release as well as future releases Accelerate your innovation journey by connecting your SAP Cloud Account to a preconfigured backend based on SAP S/4HANA Leverage your innovation potential by using SAP Model Company functionality as innovation foundation Benefit from a SAP Model Company that fits best to you innovative ideas What s provided by SAP Model Company for Connected and SAP Model Company for Connected addresses the following industry challenges: 1. Integration from Top Floor to Shop Floor 2. Real-time platform 3. Real-time process control The SAP Model Company for /Engineering and Sustainability is an end-to-end PLM solution, fully activated, ready to run system landscape including example data and business process documentation. The SAP Model Company for /Engineering and Sustainability is built on SAP S/4HANA, including many SAP PLM, PPM and EHSM solutions SAP SE or an SAP affiliate company. All rights reserved. 3

4 They pursue five key initiatives which require along Industrial Machinery & Components companies play a key role in the digitalization of businesses across all industries: 1. They provide the digitally enabled machinery and equipment so that other companies can innovate their business - driving topline revenue 2. They are spearheading innovative themselves leveraging digital of the equipment they use - achieving bottom line cost savings Aftermarket Service Download this Poster Customer centricity Serving the Segment of One Co-innovate with customers Deliver product innovations resulting from actual equipment use and incident reports Collect structured requirement based on interactions with customers and design partners Modularize product concepts and well-structured product families Use platform models across product families Select engineer-to-order during the sales configuration process Contextualize customer engagement Engage omnichannel solution selling Organize and empower sales teams Functionality available in SAP Model Company for Personalize marketing and sales Segment customers with sophistication Configure and manage variants such as costing Foster demand-driven, collaborative supply Enable on-time delivery and advanced availability-topromise Plan sales and operations with flexibility Support responsive material requirement Promote efficient and flexible internal and external logistics and supplier collaboration Adjust production orders with greater flexibility based on customer priorities Foster an agile and responsive manufacturing network Track and trace individual Show me the preconfigured functionality provided by Produce for a lot size of one with high asset utilization and optimal set-up times Integrate seamlessly for sales orders with specific parameters with the shop floor SAP Model Company Give electronic work instructions Organize and empower teams Flow customer information across channels Personalize end-to-end service parts Access a service knowledge database Offer tailor-made services Deliver an equipment-specific service portfolio Gain full transparency into equipment lifecycle information Find and contract talent with specific noncore skills Drive new strategies outside the current business scope Enable economies of scale and flexible call orders with strategic and agile global supplier-network Onboard alternative suppliers with flexibility Use simulation and analysis to evaluate financial implications of strategic business choices Manage the customer portfolio strategically Analyze profitability instantly across multiple dimensions such as product groups, customers, projects, profit centers, and plants Maintain a pipeline of top talent Attract and secure top talent Work with customers through flexible contracting Enable social collaboration among teams Identify, forecast, and address skill gaps Onboard and train employees quickly and seamlessly Digital smart Adopt a systems engineering approach that includes mechanical, software, and electronic Embed the technology foundation for equipment Functionality planned in SAP Model Company Enable collaborative solution Track digital components for and value selling Actualize efficient Generate leads through replenishment strategies predictive product Enable 3D printing for spare replacement and precise parts segmentation Install and manage in-product software Support advanced testing and connectivity Provide services for digital smart Enable a feedback loop in internal business Connect digital in the field with an equipment network Execute procurement strategies for 3D-printed service parts Bundle third-party service with Include payment models for digital services in product calculations and financial reporting Manage and help ensure digital rights compliance Train and certify workforce on new digital technologies Work with universities and external entities in a flexible manner Engage in knowledge sharing and community building Digital supply chain & smart factory Integrate manufacturing engineering with electronic and manual of bills of materials Visualize manufacturing digitally based on harmonized product data Forecast sales precisely and reliably Align supply chain and sales Route customer orders directly into the factory as production orders Achieve real-time end-toend visibility into supply chain Plan demand and supply flexibly Integrate material from shop floor to warehouse Integrate vertically up to the customer Support machine-to-machine integration Innovate plug-and-produce Benefit from a digital twin of the manufacturing facility Collaborate on equipment data through a network Handover as-built equipment information seamlessly to aftermarket services Produce service parts by 3Dprinting Allow contractual enablement of global supply chains with multi-tier suppliers Automate and simplify the integration of material suppliers Optimize working capital Manage increased financial risks associated with highly flexible supply chains and manufacturing operations Empower employees to make decisions in real-time Manage external contractors with greater flexibility Enable agile work teams Servitization & models Calculate actual equipment use Offer digital services with data platforms Support equipment information sharing along Support omnichannel solution selling Sell digital services Manage contract value Charge based on Collaborate with customers and suppliers Improve demand sensing and automate replenishment Optimize service parts and logistics Deliver on the highest quality requirements Avail manufacturing parameters to service Distribute product-use information for production Deliver -based services and as a service Monitor remote conditions and Provide predictive services Innovate digital value-add services Augment the workforce by integrating contingent workers efficiently Deliver the highest quality in the shortest time through service-parts collaboration and manage the risk of assets that are operated for customers through a product-as-a-service contract Allow financial controlling of -based service contracts Procure and manage contingent labor and services for an optimized service delivery across regions

5 They pursue five key initiatives which require along Industrial Machinery & Components companies play a key role in the digitalization of businesses across all industries: 1. They provide the digitally enabled machinery and equipment so that other companies can innovate their business - driving topline revenue 2. They are spearheading innovative themselves leveraging digital of the equipment they use - achieving bottom line cost savings Aftermarket Service Download this Poster Customer centricity Serving the Segment of One Co-innovate with customers Deliver product innovations resulting from actual equipment use and incident reports Collect structured requirement based on interactions with customers and design partners Modularize product concepts and well-structured product families Use platform models across product families Select engineer-to-order during the sales configuration process Contextualize customer engagement Engage omnichannel solution selling Organize and empower sales teams Personalize marketing and sales Segment customers with sophistication Configure and manage variants such as costing Foster demand-driven, collaborative supply Enable on-time delivery and advanced availability-topromise Plan sales and operations with flexibility Support responsive material requirement Promote efficient and flexible internal and external logistics and supplier collaboration Adjust production orders with greater flexibility based on customer priorities Foster an agile and responsive manufacturing network Track and trace individual Produce for a lot size of one with high asset utilization and optimal set-up times Integrate seamlessly sales orders with specific parameters with the shop floor Give electronic work instructions Organize and empower teams Flow customer information across channels Personalize end-to-end service parts Access a service knowledge database Functionality available Offer in tailor-made SAP Model services Company Deliver an for equipment-specific Connected service portfolio Gain full transparency into equipment lifecycle information Find and contract talent with specific noncore skills Drive new strategies outside the current business scope Enable economies of scale and flexible call orders with strategic and agile global supplier-network Onboard alternative suppliers with flexibility Use simulation and analysis to evaluate financial implications of strategic business choices Manage the customer portfolio strategically Analyze profitability instantly across multiple dimensions such as product groups, customers, projects, profit centers, and plants Maintain a pipeline of top talent Attract and secure top talent Work with customers through flexible contracting Enable social collaboration among teams Identify, forecast, and address skill gaps Onboard and train employees quickly and seamlessly Digital smart Adopt a systems engineering approach that includes mechanical, software, and electronic Embed the technology foundation for equipment Enable collaborative solution and value selling Generate leads through predictive product replacement and precise segmentation Track digital components Actualize efficient replenishment strategies Enable 3D printing for spare parts Install and manage in-product software Support advanced testing and connectivity Provide services for digital smart Enable a feedback loop in internal business Connect digital in the field with an equipment network Execute procurement strategies for 3D-printed service parts Bundle third-party service with Include payment models for digital services in product calculations and financial reporting Manage and help ensure digital rights compliance Train and certify workforce on new digital technologies Work with universities and external entities in a flexible manner Engage in knowledge sharing and community building Digital supply chain & smart factory Servitization & models Integrate manufacturing engineering with electronic and manual of bills of materials Visualize manufacturing digitally based on harmonized product data Calculate actual equipment use Offer digital services with data platforms Support equipment information sharing along Forecast sales precisely and reliably Align supply chain and sales Route customer orders directly into the factory as production orders Support omnichannel solution selling Sell digital services Manage contract value Charge based on Achieve real-time end-toend visibility into supply chain Plan demand and supply flexibly Integrate material from shop floor to warehouse Collaborate with customers and suppliers Improve demand sensing and automate replenishment Optimize service parts and logistics Integrate vertically up to the customer Support machine-to-machine integration Innovate plug-and-produce Benefit from a digital twin of the manufacturing facility Deliver on the highest quality requirements Avail manufacturing parameters to service Distribute product-use information for production Collaborate on equipment data through a network Handover as-built equipment information seamlessly to aftermarket services Produce service parts by 3Dprinting Deliver -based services and as a service Monitor remote conditions and Provide predictive services Innovate digital value-add services Allow contractual enablement of global supply chains with multi-tier suppliers Automate and simplify the integration of material suppliers Augment the workforce by integrating contingent workers efficiently Deliver the highest quality in the shortest time through service-parts collaboration Optimize working capital Manage increased financial Show risks associated me the with highly preconfigured flexible supply chains and manufacturing operations functionality provided by SAP Model Company for Connected and manage the risk of assets that are operated for customers through a product-as-a-service contract Allow financial controlling of -based service contracts Empower employees to make decisions in real-time Manage external contractors with greater flexibility Enable agile work teams Procure and manage contingent labor and services for an optimized service delivery across regions

6 SAP Model Company for Connected and Additional process coverage Aftermarket Service Model Company for Connected Model Company for /Engineering and Sustainability Product Lifecycle BOM Engineering Change Embedded Software Product Development for Process Industries SAP Product Lifecycle Costing Portfolio and Project SAP Innovation New Product Development and Introduction IT Portfolio and Project Portfolio and Project for Environment, Health and Safety Incident Risk Assessment Chemical Data Workplace Sampling Rework Order As-built Self-service composition environment Scheduling agreements directly integrated into MRP Monitoring of incoming delivery schedules Product quality by issuing quality inspection Adjustment of quantities for synchronization Advanced Rework order Visibility into stock requirements and order situation Real-time visibility into Shop Floor including Machine availability Machine to machine communication Product quality control Control production Traceability of individual Shop Floor Control Units. Lot size one production. Work in Process(WIP) Non-conformance Machine Integration & Data Collection Statistical Process Control Overall Equipment Effectiveness Shop Floor Inventory 3D Visual Work Instruction Make-to-order, Make-to-stock & Repetitive KPIs to adjust the production Lot size one production Product Genealogy Warranty/Repair cost Scheduling of rework orders Inventory for repair parts Control of rework process Device History Records Show me functionalities and provided by SAP Model Company for Connected and