Data is the new currency in the steel industry -

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1 Data is the new currency in the steel industry - Hear how companies are cashing in Stefan Koch, Global Lead for Metals, Industry Business Unit Mill Products & Mining, SAP SE Stefan Dean Koch, Fitt, Solution Global Lead Manager, for Metals, Industry Asset Management, Business Unit Mill SAP Products SE& Mining, SAP SE June 8, 6, 2018, 2018, Warsaw, Warsaw, Poland Poland

2 SAP at a glance 378,000+ Customers 88,500+ Employees 17,300+ Partners 25 Industries 23.5B Revenue in % of the Forbes Global 2000 are SAP Customers #28 of Fortune s 2017 top 100 places to work 180+ Countries Metals Perspective 7,800+ Customers in metals 40+ years of activities 75+ Countries 2

3 The Digital Era is evolving into The Intelligence Era Mainframe & PCs 1960s 1980s Client Server & Internet 1990s s Cloud, Mobile & Big Data 2000s s Intelligent Technologies 2010s s ENABLING TECHNOLOGIES Transistors & silicon revolution Large scale Mainframe Computing adoption Emergence of PC s Plant floor automation Widespread PC adoption Broadband Internet ERP and business process technologies Mobile & Smartphone ubiquity Cloud Computing Social Networks Big Data Machine Learning & Artificial Intelligence IoT & Distributed computing Blockchain CUSTOMER VALUE CREATION Industrial Automation Business Process Automation Digital Transformation Intelligent Enterprise 3

4 Intelligent Enterprises elevate employees to focus on higher-value tasks 4

5 Next Practices : Capabilities and outcomes driven by Intelligent Enterprise Capabilities Outcomes Visibility the ability to collect and connect data that was previously siloed and recognize unseen patterns Focus the ability to simulate the impact of potential options and direct scarce resources to the areas of maximum impact Agility the ability to respond faster to changes in the marketplace or the business and pivot business processes towards the right customer outcomes Do more with less and empower employees through process automation and freeing up people to do more meaningful work Deliver best-in-class customer experience by anticipating and proactively responding to end-customer needs Invent new business models and revenue streams by monetizing data-driven capabilities and applying core competencies in new ways 5

6 SAP is best positioned to deliver the Next Practices for our customer Do More with Less and Empower Employees Deliver Best-in-Class Customer Experience Invent New Business Models and Revenue Streams Automated invoice and payment matching ML-enabled resume matching and employee approvals Predictive lead management Automated sales discount approvals Warehouse automation Real time supplier and demand management Predictive maintenance and service Self-service enabled by chatbots and voice Personalized and distinctive customer experience Omni-channel customer service (available anytime and available anywhere) Outcome-based business models by digitizing products and services Expansion into new industries/markets Shared economy and network based business 6

7 The power zone in IT Hybrid Architecture Integration Power Zone RUN WIN Business Systems Systems of Innovation Bring Business to Innovation Bring Innovation to Business 7

8 The power zone in IT SAP perspective Hybrid Architecture Integration Power Zone SAP S/4HANA SAP Hybris SAP Leonardo Data Intelligence Analytics RUN SAP SuccessFactors SAP Concur SAP Fieldglass SAP Ariba Business Systems Systems of Innovation Machine Learning IoT Blockchain Big Data WIN Bring Business to Innovation Bring Innovation to Business SAP Cloud Platform Open Standards Cloud Native Integration Open APIs Platform Services Business Services SAP Data Management SAP HANA SAP Data Hub SAP Vora Big Data Open Source Technologies Multi-Cloud Infrastructure SAP 8

9 SAP s Modular Suite SAP Fiori SAP Cloud Platform Integration SAP Cloud Applications SAP Analytics Cloud & SAP Digital Boardroom Customer Specific and 3 rd Party Applications Marketplace --- Business Services --- SAP S/4HANA SAP HANA APIs SAP BW/4HANA Integration Services Security Services Mobile Services UX Services Collaboration Services Open Source Runtimes (e.g. Java, Python, R, Go, Scala) SAP Cloud Platform Open Source Storages (e.g. PostgreSQL, Mongo, Redis, ) Analytics Services ML Services BDS SAP Vora IoT Services 9

10 SAP Strategy Deliver the Intelligent Enterprise 10

11 An Intelligent Suite delivers intelligence across value chains Out-of-the-box integration leveraging the SAP Cloud Platform, SAP Cloud Analytics and a common data foundation with SAP HANA and SAP Data Hub Best in class UX with consistent experience across the entire portfolio Modular, making it easy to consume and cost-effective to operate. Easy to extend, allowing customers and partners to customize solutions quickly Intelligence embedded in the applications making the workflows smarter 11

12 Digital Platform unlocks data-driven intelligence and innovation Next generation data management expands SAP HANA in-memory database to address structured and unstructured data use cases and external data SAP HANA powers SAP Applications as the foundation of high performance data warehousing and analytics Data Hub provides data orchestration and meta data management across heterogeneous data sources Platform for extending the business processes of our Intelligent Suite and enabling new innovations Delivering deep data and process integrations through APIs and microservices Marketplace for ecosystem to build new innovations leveraging APIs and Business Services 12

13 Intelligent Technologies: SAP Leonardo everywhere Applications that deliver intelligence within core business process (e.g., Intelligent ERP, Intelligent HR) A toolbox of intelligent technologies (IoT, AI/ML, and Analytics), microservices, and data management tools that will be available over the SAP Cloud Platform to deliver intelligence out of the box as well as through co-innovation Universal analytics and digital boardroom connecting the enterprise for the CXO Innovation services combining design-thinking and Industry accelerators to ensure customers derive value from innovative new technologies quickly and with reduced risk 13

14 Streamline purchase requisition process Customer Project - Vale Vale is the worldwide #1 Iron ore producer headquartered in Brazil. 10,000 different MRO part numbers 25-40% of purchase requisitions are rejected by procurement. 50% of those rejections are items on existing contracts Streamline purchase requisition process Design thinking processing Use picture recognition to identify correct part number Direct integration to Maintenance and Procurement Business Benefits Significantly higher number of purchase requisitions get approved in the first iteration Reduce the overall time from raising a PR until part arrives Better utilization of existing contracts Free up resources for different tasks Inspection planning Inspection details 3D model for part selection 14

15 Health and Safety NLMK-SAP Co-Innovation Lab: Analyze worker position to avoid leaving safe work areas Reduce production costs and asset incidents Increase the quality of the final goods Reduce time spent with IT systems Employee positioning system Analyze large quantities of data Cross Link different data sources Prevents accidents at work Reduces safety risks Improves operational efficiency Source: 15

16 More efficient Energy Management Challenge Imbalance between energy control, planning and consumption leading to $12 M losses per anno Solution Consumption monitoring tool serving as analytical data hub presenting planned, consumed and current consumption data retrieved from different sources to identify timely critical deviation of consumption. Benefits Timely detection of deviation in consumption to avoid high costs of fines Transparency to analyze the sources of fraud or lost data to prevent unauthorized manual data correction Capability for operational reaction on unexpected events and accidents Analytics to reduce purchase cost for electricity 2018 SAP SE or an SAP affiliate company. All rights reserved. 16

17 SAP s Vision for Asset Management Full Digital Representation of Assets along their Lifecycle delivering an embedded, collaborative and real-time set of Next Generation Processes and Systems Software Electronics Mechanics Services Share & Collaborate natively Real Time Insights Unified data and processes with PLM, Manufacturing and Service Collaborative Scalable Real Time Connected Optimization via Prediction Base for Industry Extensions Cloud Platform Based Digital Disruption Adaptable Next gen tech Machine Learning, Block chain, 3D printing Partner ecosystem Opportunity Mobile First / Fiori UX 17

18 The Network of Digital Twins Digital, physical, conditional, commercial Manufacturer Operator Product intelligence Business Transactions. Intelligent Insights Asset intelligence Collaborative R&D, engineering and manufacturing Asset Management, predictive maintenance and service 18

19 SAP Leonardo Connected Assets Networked best-of-breed applications providing high end-to-end business value for key stakeholders Mode 1: System of Record Mode 2: System of Differentiation Bi-Modal Architecture for a Next Generation Asset Management Maintenance & Service Management S/4HANA ERP Efficiently manage Core Processes in Maintenance Management Integration Predictive Maintenance & Service Asset Strategy & Performance Asset Central Asset Intelligence Network SAP Leonardo IoT for Asset Management Collaboration Platform Network Predictive Engineering Insight IoT-Platform Sensor / Big Data, Prediction, ML Quarterly Innovation Cycles Mode 1 Core Maintenance Management: Corrective, emergency and preventive maintenance execution via notification and order processing in an integrated system (finance/controlling, procurement, inventory mgmt., ) Mode 2 Innovate in Asset Management: Bring technology innovation into asset management Asset Intelligence Network Collaborative asset management bringing key stakeholders (operator, OEM, service providers, ) together in a digital ecosystem solving complex execution, predictive and planning activities with centrally managed asset information Predictive Maintenance & Service Predict maintenance events to subsequently predict business processes for operational excellence (planning, procurement, scheduling, execution, ) lowering risk and improving asset availability Asset Strategy & Performance Define and plan maintenance execution strategies holistically (insight/foresight; insights form network) for improved performance Digital Twin for Structural Dynamics Model and visualize the physical structure of an asset for realtime calculation of stress and fatigue to drive predictions 19

20 SAP Asset Intelligence Network Bringing together Business partners Models / Equipment Service Provider Manufacturer Operator Regulator SAP Asset Intelligence Network will provide a global registry of industrial equipment; built and shared between multiple business partners and used across the industry by all stakeholders. This will enable new collaborative business models resulting in true Operational Excellence. 20

21 SAP Asset Intelligence Network Collaboration between manufacturers, service provider, and operators Network Content Apps Job Instructions Announcements Obsolescence Management Performance Improvement Spare Parts Equipment as a Service Work Collaboration Commissioning & Handover Nameplate info Maintenance strategy Spare Parts Service bulletins Failure modes Recalls Bills of Materials Designs and drawings Design improvements Sensor definition Operating instructions Maint instructions Safety instructions End to end Firmware process Manufacturer Service bulletin receipt Service bulletin processed Usage information Installation information Failure / incident data Design recommendations Risks and controls Measurement documents Telemetry Share Notification/Work Order Info Operator 21

22 Foundation for a successful, global, single network of assets All business partners need to talk a common language Based on industry standards e.g. ISO14224, ISO15926, ecl@ss,. Class?! Class Class Subclass Subclass Subclass Manufacturer Operator Service Provider 22

23 SAP Asset Intelligence Network Applications Admin Apps Business Partners Authorizations Templates.. Master Data Apps Models Equipment Locations Spare Parts Documents Instructions Requests Smart Matcher Process Apps Performance Improvement Obsolescence Report Error Code Lookup.. 23

24 SAP Asset Intelligence Network Equipment: Features Information Highlights Data Sheet Model Information Equipment Information Installation Information Life Cycle Information Systems Groups Structure and Parts Highlights Structure Spare Parts Visual Parts Documentation Highlights Documents Instructions Failure Modes Error Codes Alert Types Announcements Improvement Requests Monitoring Indicators Component Indicators Maintenance & Service Highlights Notifications Work Orders Tickets Contracts Time Line 24

25 SAP Asset Intelligence Network Use Case at BASF Ludwigshafen 200 production plants connected to each other by over 2,850 kilometres of pipelines & over 230 kilometres of rail. Goal is to establish a fully integrated and centrally managed, single source asset information repository, ensures Data consistency and availability Efficiency of its engineering and maintenance processes throughout the asset lifecycle. A more integrated digital approach with our business partners would allow us to easily access the latest and current information when and where needed, leading to quicker and better decision making and in consequence higher asset effectiveness. Dr. Andreas Wernsdörfer, Senior Vice President, Technical Site Services Ludwigshafen, BASF. Link 25

26 Collaborative design and material optimization for additive manufacturing Design Customer Part(s) SAP Distributed Manufacturing SAP Leonardo» Customer asks APWORKS to optimize the performance of a part using the design freedom additive manufacturing provides Material» To find the optimal alloy Heraeus is added to the collaboration. Sample parts are printed and test results recorded» Parts are planned and procured by customer with APWORKS as supplier, Heraeus as defined material provider and printed on a system from EOS Printer» EOS is added to the collaboration, as APWorks requires additional manufacturing capacity SAP S/4HANA Request for Quotation and Procurement 26

27 SAP Asset Intelligence Network Have a look to our SAP AIN playground in the exhibition area or online at :

28 SAP Digital Manufacturing Insights.is a centralized, cloud-based, data-driven manufacturing performance management solution which enables key stakeholders of manufacturing operations to take tactical and strategic decisions to achieve best-in-class manufacturing performance. Key Capabilities Global Analytics Multi-plant Analyze manufacturing performance within and across manufacturing plants of an enterprise Data acquisition from multiple disparate manufacturing application and harmonization of manufacturing data Pre-configured industry standard manufacturing Key Performance Indicators (KPIs) and flexibility to extend or create new KPIs Advanced algorithms for root cause analysis of quality defects, pattern detection and prescriptive suggestions for continuous manufacturing performance improvement SAP Digital Manufacturing Roadmaps: -> Search for Manufacturing 28

29 SAP Predictive Quality Management (Preview of 1805 Release Scope) is a solution dedicated to help manufacturers gain valuable insights into the quality aspects of their manufacturing processes, streamline quality management and apply predictive algorithms to reduce losses incurred due to quality issues and recommend corrective actions Key Capabilities Predictive Quality Improvements Deep Dive Expose manufacturing big data (IT/OT data) in the predefined manufacturing semantics Intuitive workbench to Analyze & Correlate multi-tier data related to 4Ms of manufacturing 4Ms = Man, Machine, Material, and Method Scale out predictive model building and model life cycle management to keep pace with the operations Near real-time evaluation of predictive models and trigger corrective actions to the right people Framework to build and extend predictive models using SAP standard objects and open source Incorporation of SAP MMA Model for CNC Analytics 29

30 Digital Transformation is a marathon, even you might start with a sprint, Thank you! but you have to take the first step and move, to stay ahead! Looking forward to meet you again! 30

31 Thank you Contact information: Stefan Koch Global Lead for Metals Industry Business Unit Mill Products & Mining SAP Dean Fitt Solution Manager Asset Management SAP SE