SAP Business Transformation Summit 2015

Size: px

Start display at page:

Download "SAP Business Transformation Summit 2015"

Bryan Joel Lindsey
5 years ago
Views:

1 SAP Business Transformation Summit 2015 St. Leon-Rot, October Michael Kleinemeier Member of the SAP Global Managing Board Dr. Christoph Steiger Global Head of SAP Business Transformation Services

2 Digital Economy Some Drivers New Demographic Reality New customer behavior New Business Models New Regulation (IFRS 4, Solvency II, ) Time to Market of new Products Significant cost pressures

3 NETFLIX or The Rise and Fall of BLOCKBUSTER BLOCKBUSTER declines to purchase NETFLIX for $50m 2000 Market value: $5b Revenue: $6b # of Stores: 9, Revenue: $500m files for bankruptcy 2010 Company value: $13b brand retired 2015 Company value: $33b Revenue (FY 2014): $5.5b # FTE: 2,189 # Subscribers: 50m produces own content

Digital Business is Here to Stay - Disruption and Business Opportunities are Everywhere Leaders are Emerging from Nowhere 90% of CEOs believe the digital economy will impact their industry, but less

* Industry Boundaries are Blurring Every company is expanding beyond traditional industry boundaries and also becoming a technology company Digital business models are disruptive.

4 Digital Business is Here to Stay - Disruption and Business Opportunities are Everywhere Leaders are Emerging from Nowhere 90% of CEOs believe the digital economy will impact their industry, but less than 15% are executing on a digital strategy * Early Adopters are Winning Early adopters are achieving +9% revenue creation, +26% impact to profitability, and +12% market valuation.* Industry Boundaries are Blurring Every company is expanding beyond traditional industry boundaries and also becoming a technology company Digital business models are disruptive. The rules have changed. Under Armour is not just selling shirts and shoes. They are connecting 38 million people on a digital health platform Facebook is not just a social network, it is the largest media company even though it doesn t create content Uber is not just another taxi company, it is transforming into an urban logistics company with 200,000 drivers, roughly double the size of the UPS delivery workforce Siemens is not just an industrial powerhouse. They are a software company connecting their industrial assets in the cloud and enabling customers to generate new revenue streams by selling services, not products Alibaba is not just the largest e-commerce company, they are also a financial services and technology company blurring industry lines Source: * MIT Sloan and CapGemini, 2013,

5 Digital Transformation - Technology is driving the digital era Every business is becoming a technology business Super Computing In-memory computing Big Data Smarter World Sensor - Robotics Industry 4.0 3D printing Machine Learning Artificial intelligence Cyber Security Securing data Securing interactions Securing identities Cloud Computing 5 TECHNOLOGY TRENDS Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) Hyper-Connectivity Social & Business Networks Internet of Things (IoT) Mobility

6 SAP offers the only end-to-end digital business solution S/4HANA enables digitization across 5 business pillars Workforce Engagement Supplier Collaboration Business Networks Digital Core HANA CLOUD PLATFORM Assets & Internet of Things Customer Experience Omni-Channel SAP HANA Platform

7 Dr. Christoph Steiger Global Head of SAP Business Transformation Services

8 Welcome to the SAP Headquarters for the 5 th BT Summit Barcelona Budapest Washington Berlin St. Leon-Rot Community kick-off Business Transformation Innovation & Transformation Innopreneurship Digital Transformation

The 4 stages of Industrialization 1 2 3 4 End of 18 th century Mechanization: Use of water and steam power to run mechanical production facilities Beginning of 20 th century Electrification: Use of

9 The 4 stages of Industrialization End of 18 th century Mechanization: Use of water and steam power to run mechanical production facilities Beginning of 20 th century Electrification: Use of electrical power to enable work-sharing mass production Early 1970s Computerization: Use of electronics and IT to automate production Today Networking: Use of cyber-physical systems to connect, transform and reimagine business

1 st Industrial Revolution: Mechanization 1 2 3 End of 18th century Beginning of 20th century Early 1970s 4 Today Connection

11 1 st Industrial Revolution: Mechanization End of 18th century Beginning of 20th century Early 1970s 4 Today Connection to Rhein- Neckar Region: BASF founded in Mannheim/ Ludwigshafen in 1865 Mannheim as a factory location nearby the event location

13 2 nd Industrial Revolution: Electrification End of 18th century Beginning of 20th century Early 1970s 4 Today St. Leon-Rot Connection to Rhein- Neckar Region: In 1888 Bertha Benz drove the first automobile nearby the event location Start for the rise of Mercedes-Benz and the automotive industry in Germany and worldwide

3 rd Industrial Revolution: Computerization 1 2 3 End of 18th century Beginning

SAP was founded in the region by 5 employees of IBM s Mannheim office SAP became

15 3 rd Industrial Revolution: Computerization End of 18th century Beginning of 20th century Early 1970s 4 Today Connection to Rhein-Neckar Region: In 1972 SAP was founded in the region by 5 employees of IBM s Mannheim office SAP became a pioneer of enterprise software and has its global headquarters still in this region

4 th Industrial Revolution: Networking 1 2 3 End of 18th century Beginning of 20th century Early 1970s 4 Today Connection to Rhein-Neckar Region: SAP Data Center

17 4 th Industrial Revolution: Networking End of 18th century Beginning of 20th century Early 1970s 4 Today Connection to Rhein-Neckar Region: SAP Data Center in Rot hosts the infrastructure for the digital network business and cloud computing Largest SAP Data Center with Green SAP Cloud powered by 100% renewable energy

18 Digital Transformation Why now and what s so special? DRIVERS DIGITIZATION AREAS EXAMPLES BENEFITS 1. Technology Customer Focus 2. Funds DIGITIZE BUSINESS MODELS Profitability 3. Behavior DIGITIZE BUSINESS PROCESSES Differentiation 4. Servitization DIGITIZE WORK Agility 5. Urbanization Employee Satisfaction

20 What s next?

21 Some Predictions about Digital Transformation 78% of employees say it is very important to work for a digitally enabled company or a digital leader. 1) The sharing economy will grow 3,000% from 2015 to ) At the current turnover rate, 75% of the companies in the S&P 500 in 2027 will be new ones. 4) The Internet of Things will have a potential economic impact of $4 trillion to $11 trillion a year in ) By 2025, there will be 10 global virtual currencies that will be considered mainstream. 5) 1) MIT Sloan Management Review, Is Your Business Ready for a Digital Future? McKinsey & Company, 2) Unlocking the potential of the Internet of Things. 3) SAP Center for Business Insight 2015 calculation based on PwC, The sharing economy sizing the revenue opportunity. 4) Seeking Alpha, Increasing Churn Rate In The S&P ) Startup Management, The Next 10 Years: 42 Macro Predictions in Cryptography, Blockchains and Consensus Protocols.

22 5 th SAP Business Transformation Summit This year s event explores the impact of Digital Transformation with a sharp focus on the next wave of Digital Innovation.

23 SAP Digital Experience Make it your Digital Experience Join us during the Breaks Smart Vending Machine Mobile Virtual Reality SAP Digital Boardroom Digital Use Cases EYE RIDE Virtual Reality

24 SAP Business Transformation Summit