The Intelligent Enterprise enabled by SAP S/4 HANA

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1 The Intelligent Enterprise enabled by SAP S/4 HANA Francisco Reyes SVP S/4 Hana & Industries Latin America and

2 Agenda 1. The Intelligent Enterprise 2. The next generation Digital Core 3. Digital Core key capabilities 4. How to get there? 2

3 Today s Reality Digital Economy is Reality Not Future In the last 60 years: 61 years 90% Fortune 500 companies have disappeared, merged, or contracted Source: Innosight Average lifespan of companies Source: Innosight 18 years New Heavyweights equals 60% of total DAXmarket cap In 2016, 5 of the Top 10 Largest Companies Globally are Technology Companies, and 70% are new in the LIST! Source: Forbes Charles Darwin: Survival of the fittest Not the biggest ones win, the most agile ones. 3

4 The Intelligent Enterprise Framework Manufacturing & Supply Chain Digital Core People Engagement Customer Experience Network & Spend Management The Intelligent Enterprise features 3 key components: Intelligent Suite Intelligent Technologies 1 2 Intelligent Suite Intelligent Technologies AI/ML IoT Analytics 3 Digital Platform Digital Platform Data Management Cloud Platform 4

5 The Intelligent Enterprise Framework LE & GB Business SME Business SAP ERP Portfolio Cloud ERP SAP S/4HANA Cloud SAP S/4HANA The Intelligent Enterprise features 3 key components: SAP Business ByDesign On-premise ERP SAP Business One Digital Core Intelligent Suite SAP Finance LoB CFO & GRC Intelligent Suite 1 CIO SAP HANA Intelligent Enterprise Technologies Cloud 2 SAP Industry CEO & Digital COO Platform Solutions 3 Addressing Key Audiences & Value Intelligent Technologies 5

6 The automation of repetitive tasks is allowing humans to be more productive and focus on higher value tasks HUMANS HIGH VALUE TASKS Human high value complex tasks and knowledge work HUMANS AUGMENTED BY AI HUMANS REPETITIVE TASKS Human repetitive tasks Augmented by AI in the Enterprise system to assist in core activities ENTERPRISE SYSTEM Transactional Enterprise Digital Enterprise Intelligent Enterprise Self-Running Enterprise Source: SAP CSG analysis, McKinesy Quarterly Report July 2016, Google PR, Microsoft PR, SAP Market Model 6

7 The intelligent ERP is here to reinvent businesses 60% Of human tasks will be automated by % Image recognition accuracy today (better than human rate 95% ) Process Automation Full automation of business processes, from HR to payments processing, to workflow approvals for purchase orders and sales execution Dynamic Analytics Next gen UX User experience based on voice, vision and messaging will replicate how people interact in real life and increase business productivity 95.1% Speech recognition accuracy today (better than human rate 94.1% ) Proactive analysis of new data types and discovery of unfamiliar patterns that provide a new level of insights $18B Enterprise Machine Learning Market by % Of companies see ML as critical for Competitive Advantage! Source: SAP CSG analysis, McKinsey Quarterly Report July 2016, Google PR, Microsoft PR, SAP Market Model 7

8 The Intelligent Enterprise starts at the Digital Core Digital age UX Automation Next-generation processes Intelligent ERP Legacy ERP The Intelligent ERP Difference Intelligent digital assistance and instant insights deliver value-adding experiences Machine learning, AI and predictive analytics for increased automation and efficiency Reinvent and redefine processes with applied best practices built on the latest innovations Modernizing your ERP provides the foundation to connect your data, automate key functions, and constantly improve your products & services 8

9 Digital Age User Experience Most Advanced Embedded Machine Learning Automation Business Context Awareness Productivity Adoption Training Time 9

10 Modern Driven Automation Artificial Intelligence automates and improves processes Predictive analytics helps improve decisionmaking and performance The system continuously learns and adapts to user actions and inputs Vision: Achieve 50% automation within the next 3 years 10

11 Next-Generation Processes Dynamic Pricing of Retail Goods Assisted Procurement & Sourcing Data-Driven Logistics Predictive Maintenance & Service Accelerated Financial Close Accurate Forecast Predictions Demand- Driven Replenishment Smart Delivery Insights Automatic Invoice Matching 11

12 Why Digital Core from SAP? The 1 st Intelligent Digital Core and ERP 100% In-memory Data Management Rich Functionality Industry Know-How Covering End-to-End Processes 12

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15 SAP S/4HANA Cloud Evolving at cloud speed ~20% more scope per release* Release * 4 quarterly innovative releases per year 68 Finance-centric administrative ERP built to deliver value to all customers Strong 2-tier ERP capabilities Selected industry-specific functionality Unmatched international support (38 countries and 23 languages by end of 2018)* Intelligence API operations Scope items (business functions) Countries *This is the current state of planning and may be changed by SAP at any time without notice. 15

16 Build the Intelligent Enterprise Machine Learning Roadmap Excerpt Digital Supply Chain & Manufacturing SAP S/4HANA (All available) Conversational AI ML Foundation Employee Self Service Bot Itinerary Capture SAP Fieldglass Live Insights Semantic Contract Repository Ticket Intelligence Job Analyzer Self-Writing Expense Predictive & Prescriptive Maintenance Contract Consumption End-to-end suite Bring your own model Stock in Transit Total Workforce Insights Self-Service Contracts Contextual Merchandizing Invoice Digitization Demand Sensing SAP Tax Compliance Smart Automation Job Seeker Resume Ranking Risk Impact Predictions Attribute Normalization Product & Offer Recommendation (RTC 1808) Job Matching Predictive Engineering Insights Cash Application Intuitive UX Any language Q&A Pre-trained business services Learning Recommender (RTC 1808) Text classification and analysis Chatbot Bookings Support and Productivity Bots Semantic Search Resume Matching Computer Vision Receipts Lead Intelligence Predictive Quality Management Sales Performance Prediction SAP CoPilot integration Image feature analysis Item Normalization Manager & Administrator Self Service Bot Job Normalization Anomaly Detection Influencer Map & Deal Finder Advanced Forecast Accuracy Job Matching for Candidates Suite Payment Block- Cash Discount at Risk Context Management GPU usage AI Invoice Processing Career Planning "People like me" Item Recommendation Multi-Touch Customer Attribution Supply Chain Segmentation Program Office Guidance Automated Duty of Care Knowledge Bots Customer Retention (RTC 1811) Timesheet Anomaly Detection Proactive Assistant Sourcing Recommendation Smart Alerts for Real Spend and P&L Analysis Smart Worker Enablement on Shop Floor Payroll Fraud Detection AI Expense Approvals Sourcing Optimization Intelligent Customer Experience Suite Speech and audio capabilities 16 Statement of Work Builder Predictive Overall Equipment Effectiveness Demand-Driven Replenishment Adjustment Insurance Bot Industry Bots Integration with an additional CRM Tabular and times series analysis

17 You have complete choice SAP S/4HANA & S/4HANA Cloud s code line, simplified data model, and modern user experience are consistent across both environments. SAP S/4HANA Considerations for selecting the right SAP S/4HANA solution: Business functionality Regulatory, industry, and regional requirements Individualization options IT Strategy Innovation cycles Adoption/upgrade efforts TCO Commercial models Cloud ONE Code Line Data Model User Experience On Premise 17

18 SAP S/4HANA Cloud is the best choice for Intelligent Organizations SAP S/4HANA Cloud Default choice for enterprises looking to benefit from Intelligent Cloud ERP Continuous Innovation Predictable, Lowest TCO Agile with rapid innovation cycles Get latest capabilities & best practices Keep up with regulatory changes Shift from CapEx to OpEx Reduced need of IT administrative tasks No infrastructure investment needed Unmatched speed of innovation Lowest total cost of ownership Fastest time-to-value Speed Accelerate go-live and user adoption Rapid global deployments Flexibly scale to new business needs Simple, Reliable, and Safe Easy to configure and extend Fully managed by a trusted 3rd party Complete data security & protection 18

19 Make the case Three free tools, personalized guidance for IT and the line-of-business S/4HANA Business Scenario Recommendations SAP Transformation Navigator SAP Readiness Check Identify the business processes you can improve and discover new business capabilities. Customers new to SAP can use Business Value Advisor: See the S/4HANA roadmap for each component in your current landscape. Based on current SAP product usage or capabilities your organization wants. Learn the technical requirements and actions for a system conversion to S/4HANA. Based on configuration and usage data for customers already on SAP ECC 6.x. 19

20 Deliver your future Offerings from SAP & Partners Executive Alignment Value Discovery Execution Readiness Value Delivery What business objectives do we enable? Where and how will we realize our ROI? What is our plan for deployment? Which best practices ensure success? Intelligent Enterprise Value Discovery engagement SAP and partner-led offerings showcasing the role of S/4HANA in all aspects of the Intelligent Enterprise, including innovations in user experience, machine learning, and the key business benefits in the era of industry transformation. SAP S/4HANA Value Discovery engagement SAP and partner-led offerings for more in-depth S/4HANA migration plans based on requirements; detailing value, potential costs, timeframe and ROI. SAP S/4HANA Adoption Starter engagement Adoption starter, guided enablement and self-service tools to create your first S/4HANA plan, including benchmarking, value assessment & migration strategy 20

21 Thank you. Francisco Reyes SVP S/4 HANA & Industries SAP Latin America and the Caribbean