The Future of the Digital Economy and SAP s Role

Transcription

1 The Future of the Digital Economy and SAP s Role Sven Denecken, GVP Co-Innovation and Product Management SAP S/4HANA Helsinki,

2 The Market

3 Macro perspective, the modern drivers of change *Concept Source: Unboundary, Inc SAP SE or an SAP affiliate company. All rights reserved. 3

4 As five billion people reach middle class, new challenges arise in customer expectations, workforce, and resource management 82% customers stop doing business with a company due to a poor experience Rising Customer Expectations 72% of Millennials feel their current organization is not making full use of their skills 71% of business leaders believe that customer experience is the next battleground High employee engagement: 3x higher operating margin Dramatically Changing Workforce Water 1.5x by 2030 Energy 1.5x by 2020 Food 1.5x by 2030 Metals 2x by 2030 Pressure on Resources $5.6T savings through connected vehicles 67% increase in crop yields 22% increase in supply chain efficiency Sources: Impact Report, Harris Interactive. Colin Shaw and John Ivens, 2010; Deloitte Millennial Study, 2015; Shell, 2014; WRI, 2014; SAP SE, Towers Watson, SAP SE or an SAP affiliate company. All rights reserved. 4

5 10.2% or U.S.$237 billion of profits are lost by the top 200 global companies due to hidden costs of complexity 75% 73% Business Network Say it s business processes Say it s decision making 60% Believe it s technology Source: The Simplicity Index 2011, 2015 Wharton-SAP Run Simple Survey SAP SE or an SAP affiliate company. All rights reserved. 5

6 The Digital

7 The business models of the future Empowered consumer / customer Competitive and regulatory pressures Globalization Science and technology progress Customer centric Operationally excellent Globally networked Rapidly innovating Segment of One at scale Next generation processes "Plug and play" networks Agile Powered by digital technologies 2015 SAP SE or an SAP affiliate company. All rights reserved. 7

8 The digital economy is a reality The digital value chain 78% Of business leaders said that achieving digital transformation will become critical to their organizations within the next two years.* 93% Of employees in companies where CEOs have shared their vision for digital transformation feel that it is the right thing for the organization.* Customers Omnicommerce Internet of Things Resources People To enable the workforce of the future employees and contingent labor Social Other unstructured/ structured data All lines of business running in real time on a digital business platform The digital value chain Business network Suppliers *MIT Digital Change Survey, SAP SE or an SAP affiliate company. All rights reserved. 8

9 Digitzation of core processes is critical to scale up Example: Digital commerce fulfillment example Minimum Viable Product End to end digitized Personalized Coupons Plan Your Trip to the Store Personalized Coupons Plan Your Trip to the Store Auto-replenishment/ Subscription Personalized Communication Easy Ordering from app In-Store Navigation Curated Experience Auto-replenishment/ Subscription Personalized Communication Easy Ordering from app In-Store Navigation Curated Experience Digital store front Batch fulfillment Digital store front Lot size one Digital shopper experience Mobile commerce In store navigation Easy ordering Peronalized coupons Curated expereince Limited number of variants Weekly or daily planning, fulfillment and delivery tact Low flexibility for order changes and responses to unplanned down time, supply problems, etc. Marketing in real time to the Segment of ONE based on individual customer activities on all channels Individualized advertisements, discounts, product configurations, product recommendations, etc. Mass customization supported by real time fulfillment monitoring processing of customer change requests responses to unplanned downtimes responses to changed parts availability Digital store is a typical MVP for fast market entry Digitized core is needed for consistent customer experience 2015 SAP SE or an SAP affiliate company. All rights reserved.

10 SAP S/4HANA The Digital

11 Why? The Innovation Adoption Model for Digital Transformation Transformational Level Business Impact Business Processes Business Model Business Outcome NEW BUSINESS MODELS Business Innovation New customers New markets NEW NEW Improved PRODUCTS Optimize products Offer new products/services NEW OLD Improved PROCESSES Improve single processes Replace single processes Change end to end processes NEW OLD Improved DECISIONS Transparency Decision support Decision automation OLD OLD Technical SOLUTION Velocity 2015 SAP SE or an SAP affiliate company. All rights reserved. 11

12 Industry Value Chains are Transforming Make Industry Leading Processes Accessible for Everybody in SAP S4/HANA (Pick from the Buffet) You see You think You need Today Engineering plastics and polyurethanes in the BMW i3 Equipment Value several Bill USD Fact: BASF runs DIMP JIT in an single instance today Oil & Gas Service Companies are renting out heavy equipment (Equipment Tools Management) IS OIL & IS DIMP (today Side by Side ) need to be on a single instance (future). Future Concept: Meyer Werft is using Lean Manufacturing concepts like JIS today for Shipbuilding Transformation in full motion: Google is developping cars 2015 SAP SE or an SAP affiliate company. All rights reserved.

13 SAP S/4HANA Value Toolkit: digitize beyond the core, embrace the digital economy Digital Economy Digital Core Digital Transformation Internet of Things Big Data Business networks User Empowered Process Enriched Segment of 1 Lot size of 1 At scale Devices Live Data No latency Social networks People Traditional core value play SAP S/4HANA value play 2015 SAP SE or an SAP affiliate company. All rights reserved. 13

14 S/4HANA Simplification Example Sales and Distribution Inventory Mgmt. (Quantities) Inventory Mgmt. (Valuation via MBEW) Material Ledger (multi GAAP, multi currency) Accounting Business Suite Export/import tables EIKP EIPO Primary Document tables VBAK LIKP VBRK VBAP LIPS VBRP VBFA Index tables VBUK VBUP Rebate index VBOX LIS tables S066 S067 Output mgmt NAST Status tables VAPMA VAKPA VLPMA VLKPA VRPMA VRKPA MARD MARC MSTQH MSLBH MSTEH MSKUH MSTBH MSKAH MSSQH MKOLH MSSAH MSPRH History tables MCHBH MSTQ MSTE MSTB MSSQ MSSA MARDH MARCH Totals tables MSPR MSLB MKPF MSKU MSEG MSKA MKOL MCHB Document MBEW QBEW OBEW OBEW Totals MBEWH QBEWH OBEWH OBEWH Totals CKMLPP CKMLCR CKMI1 Index Document MLHD MLIT MLPP MLCR MLPPF MLCRF COSP COSS COFIT BKPF BSEG COBK COEP GLPCT ZZFISLT FAGLFLEXT GLFUNCT BSIS BSIT BSIK BSID BSIM BSAS BSAT BSAK BSAD GLPCA Documents ZZFISLA FAGLFLEXA ANEK ANEP Totals GLFUNCA COFIS Indices Sales and Distribution Master Data Inventory Mgmt (Quantities) Material Ledger (multi GAAP, multi currency) Accounting VBAK LIKB VBRK VBAP LIPS VBRP VBFA Material MATDOC Material Prices BKPF ACDOCA SIMPLE DATA MODEL» Only main tables remaining, no redundancies» Clear separation of master data from transactional data» Reduction of memory footprint PRINCIPLE OF ONE» Only one valuation method (Material Ledger) instead of 2 (IM + ML)» Flexible rebate management instead of cumbersome and expensive redundancies THROUGHPUT INCREASE» INSERT only on database level (MM-IM), no locks for standard price valuation 2015 SAP SE or an SAP affiliate company. All rights reserved. 14

15 The Principle of One in SAP S/4HANA SLC SRM Ariba WM MM HCM BW SFSF EC Strategic Procurement Operational Procurement HCM HANA DB EWM Embedded Analytics Fiori Apps EWM SFSF EC Before with SAP S/4HANA SAP SE or an SAP affiliate company. All rights reserved SAP SE or an SAP affiliate company. All rights reserved. No complete picture. Only illustrative.

16 Real-time analytics architecture Foundation for new class of applications SAP S/4HANA applications Operational Reporting Zero latency! SAP NetWeaver PLATFORM ABAP Layer SAP HANA Views (Virtual Data Model) Core Data Services (CDS) SAP HANA Database Layer Physical Tables Atomic Instantaneous Pre-defined 2015 SAP SE or an SAP affiliate company. All rights reserved.

17 Intuitive User Experience and a responsive design Today Functional-based applications from: One transaction for multiple roles with too much and complex functionality Target Role-based applications to: Decomposed apps for each role with simple functions from: Multiple entry points for the user and inconsistent user experience to: One entry point for the User and UX following common design directions This is the current state of planning and may be changed by SAP at any time SAP SE or an SAP affiliate company. All rights reserved.

18 Enterprise Management Product Map Streamlined Procure to Pay Accelerated Plan to Product Optimized Order to Cash Enhanced Request to Service Supplier Management Production Planning Order and Contract Management Service Master Data Management Sourcing and Contract Management Manufacturing Execution Inventory and Basic Warehouse Management Service Management Operational Procurement Inventory and Basic Warehouse Management Receivables Processing Service Parts Management Inventory and Basic Warehouse Management Product Development and Project Control Service Agreement Management Invoice and Payables Management Maintenance Quality Management and Compliance Core Human Resources Cross Application Time Management Employee Central Connectivity Core Finance Accounting and Financial Close Cost Management and Profitability Analysis 2015 SAP SE or an SAP affiliate company. All rights reserved. 18

19 Simplifying Line of Businesses with SAP S/4HANA Finance Supply Chain R&D and Engineering Sales Invoice Management Receivables Management Accounting and Financial Close Inventory and Operations Planning Production Planning and Scheduling Extended Warehouse Management Transportation Management Commercial Project Management Design Orchestration Design Network Collaborative Quote to Cash Collaborative Sales Force Automation Sales Performance Management Manufacturing Sourcing & Procurement Asset Management Service Responsive Manufacturing Lean Manufacturing Quality Management and Compliance Direct Procurement Invoice Management Strategic Sourcing and Supplier Management Asset Operations and Maintenance Capital Portfolio and Project Management Asset Network Omni-Channel Customer Service Field Service Management Sustainability Environment, Health and Safety Corporate Sustainability Product Safety and Stewardship Marketing & Commerce Campaign Management Billing and Revenue Innovation Management Omni-Channel Commerce Mgmt Human Resources Core Human Resources and Payroll Talent Management Workforce Planning and Analytics Information Technology Real-Time Application Deployment Models In-Memory and Mobile Technology SAP SE or an SAP affiliate company. All rights reserved SAP SE or an SAP affiliate company. All rights reserved. 19

20 Exemplar Value Case: Digital transformation in Finance and Logistics Process Enriched Scalability I Real time I Prediction I Simulation User Empowered Instant insight I Contextual information I Personalized experience Live Data Granular I Responsive I accurate Finance Soft Close Manufacturing In Sync manufacturing Improve management and control of operations anytime within period Allow immediate financial and business decisions (such as transactionbased revenue recognition, calculation of overheads) Business outcome: Revenue and margin increase through real-time profitability analysis Real-time revenue recognition for goods and services Ensure physical reality in production and representation in IT system are always in sync Drive more frequent Inventory updates in real time Business outcome: Reduce costs with always correct inventory information, less exception handling Improve product quality with early detection of master data errors Key innovations: Key innovations: Universal journal Intra-period reconciliation Real-time inventory management Inventory information at granular level 2015 SAP SE or an SAP affiliate company. All rights reserved. 20

21 Exemplar Value Case: Digital transformation in Manufacturing and Wholesale The Digital economy in Manufacturing: Connected equipment. Big Data. Industry 4.0 Internet of Things. The Digital core The manufacturing Digital transformation Connected design Connected manufacturing. Serving the segment of one The Digital economy in Wholesale: Omni-Channel commerce. Internet of Things. Big Data. Insight-driven wholesale distribution. The Wholesale Digital transformation Omni-Channel service Connected vending machine sales Profitability optimization SAP SE or an SAP affiliate company. All rights reserved. 21

22 Where to go for more information Discover SAP S/4HANA SAP S/4HANA, cloud edition trial SAP S/4HANA, on-premise edition trial Public Cloud Trial Joint the Community Top Questions and Answers How to get there S/4HANA Cookbook Further content with more detailed roadmap on SAP Service Marketplace 2015 SAP SE or an SAP affiliate company. All rights reserved. 22

23 How to

24 2015 SAP SE or an SAP affiliate company. All rights reserved. 24 Understanding The New Value Levers The digitized core enables real transformation Digital economy Segment of one Internet of things Cloud Big Data Mobile Subscription Lot size one Unit of one Connected manufacturing Digital transformation Digitized core Contextual marketing Personalized experience Business model transition User Empowered Instant insight I Contextual information I Personalized experience Process Enriched Scalability I Real time I Prediction I Simulation Live Data Granular I Responsive I Accurate

25 Technology Is The Enabler for The Optimization Levers Increase efficiency Doing things right 1 2 Accelerate execution Automate process steps Increase effectiveness Doing the right thing 4 6 Speed up signal to action Raise process intelligence 5 De-layer processes 3 Digital outtasking Increase agility Speed and flexibility 7 Increase process flexibility 8 Increase organizational agility 9 Assimilate process innovation 2015 SAP SE or an SAP affiliate company. All rights reserved.

26 Integration & Migration Strategy SAP S/4HANA Services from SAP STEP 3A (New Customer) START STEP 1 STEP 2 Value Identification Workshop Planning Workshop 1 day 2-4 weeks Option A Option B Baseline Package STEP 3B (Existing) Custom Code Migration Data Migration Database Migration STEP 4 SAP S/4HANA Innovation RUN SIMPLE Technical SAP Fiori UX Finance/ Logistics Analytics 2015 SAP SE or an SAP affiliate company. All rights reserved. 26

27 Integration & Migration Strategy Scenarios for a move to SAP S/4HANA New Implementation Landscape Transformation Non SAP Migration of selected applications System Consolidation S/4HANA System Conversion S/4HANA Co-deployment of dedicated capabilities in one central S/4HANA system FI MM CO SD FI SAP S/4 HANA HANA CO SAP S4 HANA HANA Consolidation of current regional Business Suite landscape into one global S/4HANA system 2015 SAP SE or an SAP affiliate company. All rights reserved. 27

28 SAP helps simplifies your technology architecture, business processes, and decision making Applications Every line of business and every industry Business Network Inter-enterprise commerce and spend SAP HANA Platform In-memory computing. Analytics. Services SAP SE or an SAP affiliate company. All rights reserved. 28

29 Your journey to master simplicity and capture the Digital Economy starts today at the pace you choose Choose business processes Industry value engineering Business scenario recommendation Choose decision scenarios Data discovery workshop Business strategy Data mapping Choose technology platform Architectural plan Technical readiness assessment Design Thinking Co-Innovation 2015 SAP SE or an SAP affiliate company. All rights reserved. 29

30 The Digital Transformation lever is huge End2End process chain Mobilize services, BYOD New enterprise architecture How to leverage for my business Cloud Hybrid as the new norm Internal IT as service broker Mobile Business Networks Collaboration Web 2.0 New communication mechanisms New value chains Flex the core Simplify data model IoT User experience Data as new economic resource Big Data Machine2Machine communications IT security, tracking Real-time analytic Data-driven development Classic industry vs. digital business 2015 SAP SE or an SAP affiliate company. All rights reserved. 30

31 SAP Digital Boardroom Lead in the digital economy with contextualized, real-time information Total transparency Connect the boardroom to people, places, and devices Instant data-driven insights Understand the past, predict the future and drive execution Simplified boardroom processes Monitor, simulate and drive change in real-time Check on Youtube: SAP SE or an SAP affiliate company. All rights reserved. 31

32 Run Simple. Thank INTERNAL

33 Sven Denecken, GVP Co-Innovation & Product Management S/4HANA, SAP Run simple with the next-generation business suite