SAP Energy & Natural Resources Strategy Market trends, Innovations, Value and Customer Community

Transcription

1 SAP ENR FORUM KSA Al Khobar, 31 st of May 2015 SAP Energy & Natural Resources Strategy Market trends, Innovations, Value and Customer Community Maher Chebbo, PhD Energy GM Energy & Natural Resources (EMEA+MEE) SAP (Paris office) President of ESMIG 2015 SAP SE or an SAP affiliate company. All rights reserved. 1 Public

2 ENR Trends SAP ENR Innovations ENR KPI Benchmarks SAP ENR Community SAP 4 KSA 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 2

3 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 3

4 The Smart Energy Strategy ENERGY PORTFOLIO ENERGY MIX SUPPLY CHAIN DEMAND SIDE SMART ENERGY STRATEGY ECONOMICS BUSINESS MODELS BIG DATA INTELLIGENCE PREDICTIONS 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 4

5 EMEA Energy & Natural Resources : Trends & key SAP Business Solutions Industries Trends Key SAP Business Solutions Oil & Gas Better Insight & predictions, Demanding Customers Optimize Oil Supply Sources, Integrated Operations Huge Capital investments & Oil price drop Integrated Digital Oil Field Operations Capital & Spend Effectiveness Hydrocarbon Supply Chain Chemicals Safety & Operations Transparency Maximize Return on Assets and innovation Cost pressure, Demand shift & Raw materials $ Volatility Complex and Volatile Supply Chains Manufacturing Performance and Asset Utilization Mill Products Mining Commodities data & Safety insights Cost of Operations Adapt Production to Demand Commodities data & Safety insights Cost of Operations Adapt Production to Demand Profit driven Supply Chain Plant and Asset Operations Excellence Sustainable Customer Relationships Optimize Mine Operations Efficient Sales & Supply Chain Utilities Customer s Big Data, Online Services SmartGrids IT/OT Operations Customer Energy & Smart Energy Customer Experience and Smart Metering Operational Efficiency for Plants & (Smart) Grids 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 5

6 O&G Upstream Business Imperatives in the New Reality Cuts in capital expenditure Tighter scrutiny of investments in high-risk projects Optimize capital spend Optimize production cost/barrel Maximize reserve recovery from existing fields Optimize production management Increased focus on sustainable operations and risk management Reduce costs across the organization, e.g., supply chain, etc. Sustainable operations Talent management Contingent workforce management Optimize workforce and talent Mergers and acquisitions Economies of scale not viable for small players Enable mergers and acquisition 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 6

7 Mining & Metals trends Mining & Metal Large CAPEX and M&A activities Mining & Metal News Investments shifted due to current economic situation 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 7

8 Metals & Paper trends Metal News Large CAPEX and M&A activities Metal News Investments shifted due to current economic situation Paper News: It s all Consolidation, Cost Control, Prices, Alternative Businesses, Sustainability 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 8

9 SmartGrids : The disruptive Energy Transformation KEY MESSAGE EU Energy Initiatives : SmartGrids, Photovoltaic, Wind, Carbon Capture and Storage, Sustainable Nuclear, Electrical Vehicles, Smart Transportation & Logistics, Smart Cities, Smart Buildings, Smart Lighting, Smart Manufacturing, Energy Efficiency 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 9

10 ENR Trends SAP ENR Innovations ENR KPI Benchmarks SAP ENR Community SAP 4 KSA 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 10

11 SAP offering for Oil & Gas x Industry Sales Plays 1 Total Workforce Manage end to end talent supply process (internal and external) to have the right person, at the right time for the right job Capital and Spend Effectiveness Capital Planning Portfolio and Project Strategic Sourcing and Supplier Procure to Pay and Business Network Integrated Digital Oilfield Operations Hydrocarbon Production Hydrocarbon Revenue Field Logistics Hydrocarbon Supply Chain Hydrocarbon Supply and Distribution Hydrocarbon Processing Visibility Commercial Sales and Marketing Secondary Distribution and Fuels Retailing Operational Integrity Risk Analysis and Governance Workforce Competency Asset Integrity Environment, Health, and Safety 3 Procurement and Business Network Delivering realized savings on direct, indirect and services procurement Convenience Retailing Enterprise Information Data Architecture and Integration Information Governance Content Information Archival 4 2 Travel and Expense Optimization Human Resources Finance Core Human Resources and Payroll Financial Planning and Analysis Talent Accounting and Financial Close Time and Attendance Treasury and Financial Risk Workforce Planning and Analytics Collaborative Finance Operations Enterprise Risk and Compliance HANA Enterprise Cloud Enables quick time to value in a low oil price environment Concur in every account Platform and Technology Enterprise Technology Analytics Technology Mobile Technology In-Memory Technology 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 11

12 SAP offering for Chemicals x Industry Sales Plays 1 Talent Manage talent management process to have the right person, at the right time for the right job 2 Cloud for Sales delivering profitable alignment of demand and supply SAP S&OP OnDemand Hybris 3 Travel and Expense Optimization Concur in every account Product Innovation and Integrity Integrated Product Development Product Safety and Stewardship Quality and Compliance Human Resources Finance Information Risk Procurement Technology and Platform Core Human Resources and Payroll Financial Planning and Analysis Strategic Sourcing & Supplier Travel Enterprise Technology Manufacturing Production Operations Production Network Environment, Health, and Safety Asset Operations and Maintenance Asset Network Talent Accounting and Financial Close Direct Procurement Regulated and Complex Procurement Supply Chain Demand-Driven Business Planning Responsive Supply Network Logistics Fulfillment Supply Chain Monitoring Time and Attendance Treasury and Financial Risk Indirect/MRO Procurement Workforce Planning and Analytics Collaborative Finance Operations Contingent Workforce Analytics Mobile HANA Sales and Marketing Insight-Driven Marketing Collaborative Quote to Cash Transparent Service Process and Operations Omnichannel Commerce Enterprise Risk & Compliance Services Procurement 4 Procurement and Business Network Delivering realized savings on direct, indirect and services procurement 5 Product Safety & Stewardship Delivering brand protection and sustainable revenues SAP Product Safety on Demand SAP EHS Regulatory Documentation OnDemand 6 HANA Enterprise Cloud Enables quick time to value in a low oil price environment 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 12

13 SAP offering for Mill & Mining x Industry Sales Plays Mill Profit-Driven Supply Chain Plant and Asset Operations Excellence Sustainable Customer Relationships 1 Talent Manage talent management process to have the right person, at the right time for the right job 2 Procurement & Business Network Delivering realized savings on direct, indirect and services procurement Mining Profit-Driven Business Planning Supply, Production, and Order Response Real-Time Network and Manufacturing Insights Efficient Logistics and Order Fulfillment Production Execution and Visibility Asset Operations and Maintenance Asset Network Environment, Health, and Safety Strategic Marketing Order to Cash Including Configurable Products Cross-Channel Commerce Differentiating Service Corporate functions > Human Resources Finance Procurement Excellence Technology > Enterprise Technology Analytics Technology Mobile Technology in-memory Technology Optimized Mine Operations Project and Portfolio Mine Operations and Downstream Processing Asset Operations and Maintenance Asset Network Commodity Supply Demand Driven Business Planning Commodity Bulk and Non-Bulk Transportation Operational Risk and Compliance Environment, Health and Safety Product Safety and Stewardship Corporate functions > Human Resources Finance Procurement Excellence Technology > Enterprise Technology Analytics Technology Mobile Technology in-memory Technology 5 Travel and Expense Optimization 4 CRM & Omni-channel Commerce Drive field engagement and sales effectiveness through social collaboration, in-context customer intelligence, real-time analytics, deal orchestration from prospect-to-pay, omni-channel commerce SAP Cloud for Customer SAP Hybris Omni-channel Commerce 3 Contingent Workforce 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 13

14 SAP offering for Utilities x Industry Sales Plays 1 IoT and IT/OT Scenarios Leverage sensor and smart metering data for asset centric and energy centric use cases SAP HANA, SAP PdM, SAP Asset Health, SAP AMI Integration. 4 Talent Manage talent management process to have the right person, at the right time for the right job 2 SAP Customer Engagement and Commerce Support new business models, flexible billing scenarios and solution selling Hybris,SAP C4C 5 3 Concur in every account 6 SAP Business Network Delivering realized savings on direct, indirect and services procurement HANA Enterprise Cloud 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 14

15 SAP Enterprise Asset Roadmap : MDG (Utopia) for EAM within the Asset Network Project and Portfolio Asset Network Asset Operations and Maintenance Environment, Health, and Safety Product Safety and Stewardship Idea Asset Information Collaboration Asset Strategy and Performance Incident Product Compliance for Discrete Industries Project Portfolio Resource Project Connectivity Asset Information Governance Predictive Maintenance and Service Plan Driven Procurement Contingent Workforce and Services Procurement Asset Planning and Scheduling Maintenance Execution Mobile Asset EH&S Compliance and Risk Environmental Emissions of Change Maintenance Safety and Permit to Work Product and Chemical Compliance for Process Industries Safety Data Sheet Dangerous Goods Global Label Value, Alignment, Leadership, and Assurance are based on information and communication! 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 15

16 Large Energy Community connected through Ariba Business Networks Buying Organizations Suppliers 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 16

17 HANA (In-Memory) Cloud / On Premise By integrating SAP Business Processes, Technology and Information, disruptive innovations can be met Information Intelligence, Real Time Predictive Analytics (e.g. Predicting Energy Demand anytime) Complex Event Processing Visual Enterprise Mobility IT/OT Integration Assets Visibility Ariba Cloud Procurement Supply Chain SmartGrids Smart Metering Capital Project Digital Oil Field Customer Experience Success Factors Cloud Talent User Experience, Fiori, Persona, Simplified EAM UI 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 17

18 The Unique SAP Value Proposition Combining Business Processes, Information and Technology Forecasting BUSINESS PROCESS PLATFORM INFORMATION PLATFORM Predictions Powered by in-memory DB (SAP HANA) 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 18

19 Example of SAP ENR Digital Innovations Asset Lifecycle & Predicitions In-Memory (HANA) & Analytics Geo Analytics Digital Oil Field 3D Visual Enterprise Smart Metering & Energy Efficiency 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 19

20 Example of SAP Potsdam Lab s Outcome : Critical Equipment Load & Loss of Life IEC VDE (Loading guide for oil-immersed transformers) HANA Predictive Analytics 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 20

21 Energy Efficiency Real Time Benchmarking with in-memory HANA KEY MESSAGE Available Mobile HANA App. for C&I customers : Retailer with 477 stores Store # 228 scores 389 in bottom 10% Energy Efficiency 11 Million meter data points read in 0.4 seconds (empowered by HANA) Smart Metering HANA Energy efficiency benchmarks for C&I customers Energy consumption profile per customer 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 21

22 Real Time Energy Consumption intensity of Manhattan (1 billion records in < 1 s) In-Memory (HANA) 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 22

23 Jeju Island test-bed SmartGrids in Korea (SAP & KT, Samsung, KEPCO, SK, LG,...) KEY MESSAGE SAP, Korea Telecom, Samsung, KEPCO, SK, LG and other partners The official SmartGrids project of Korea with 64 M$ funding 1. Smart Place 2. Smart Transportation 3. Smart Renewable 4. Smart Power Grid 5. Smart Electricity Service 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 23

24 Pan-European EU funded project H2020, called «FLEXICIENCY» using SAP HANA Cloud Platform ENR HCP FLEXICIENCY Electricity pan-european Marketplace for Distribution & Retail : Kind of Apple Store for Energy Efficiency and Demand Packaged Services Target Utilities on the same Public Marketplace 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 24

25 ENR Trends SAP ENR Innovations ENR KPI Benchmarks SAP ENR Community SAP 4 KSA 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 25

26 SAP Benchmarking Database of Energy KPIs : from Enterprise KPIs to Energy Independence KPIs Energy specific KPIs OIL & GAS Manufacturing & Maintenance No of OSHA incidents per year Average cost per OSHA recordable Average cost / lost time case LTIF (Lost Time Injury Frequency) Overall Equipment Efficiency Exploration & Production Oil and Condensate Production (bpd) Oil and Gas 2P Reserves (mln boe) Supply Chain Reduced O2C cycle time Error free documentation per order as a % of total orders On time delivery to request date Procurement % of purchases under precertified suppliers and negotiated contracts % of indirect purchases done through catalogs Requisition to PO cycle time Lines of Business Finance Finance Financial Perfor. & Risk Mgt. Finance Shared Services Access Control Process Control Supply Chain Mgt Supply Chain Planning Warehouse Transportation Manufacturing Manufacturing Lean Enterprise Energy & Sustain. Ops EH&S Compliance Environmental Sustainability Service Customer Contact Center Customer Service & Support After Sales Service R&D/Engineering Product Lifecycle Mgt Capital Project and Portfolio Procurement Ariba Procurement/Sourcing Commodity Human Resources Human Capital HR Shared Services Talent Asset Enterprise Asset Real Estate Sales Sales Effectiveness Order to Cash Marketing Marketing (under development) IT Best Run IT Enterprise Architecture Value Enablement Total Cost of Ownership Technology Innovations Analytics Business Intelligence (BI) Data Enterprise Information Mgt Information Governance Enterprise Mobility Enterprise Mobility Enterprise Mobility Business Impact SAP HANA Platform High Performance Analytics Other Innovation Index In order to explore the content of the available surveys please go to # 2015 SAP SE or an SAP affiliate company. All rights reserved. 26 Public

27 Oil Price challenge : SAP Point of View for Upstream 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 27

28 Oil Price challenge : SAP Point of View for Downstream 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 28

29 Key Opportunities impacting bottom line to respond to low energy price impact in SAP view KEY MESSAGE SAP offers a quick Health Check to assess the areas of improvement Health Check Service will be based on SAP POV for Oil price drop Indicative Pilot implementation timelines depending on area of improvement Capital and spend effectiv e-ness Integrate d digital oil field operation s Hydrocarbon supply chain Operati onal integrity The SAP HANA platform Analytics Cloud Mobile 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 29

30 Chemicals Industry Value Map : Value Benchmarks (examples) 27% Shorter time to market for new products when all requirements are communicated to suppliers and supplier commitment is secured in a timely manner 10% Higher operating equipment effectiveness when the majority of maintenance work orders are generated from preventive maintenance inspections 9% Higher on-time delivery in chemical companies when processes and systems are integrated with key carriers, freight forwarders, and the like 39% Lower average sales cycle length where organizations have high maturity in quotation and order- management processes Product Innovation and Integrity Integrated Product Development Product Safety and Stewardship Integrated Quality Assurance Information Risk 24% Higher share of new-product revenue for organizations where new product ideas are captured from all stakeholders through multiple channels Manufacturing and Asset Optimization Efficient Manufacturing Execution Sustainable Operations Manufacturing Visibility and Performance Asset Operations and Maintenance 10% Lower manufacturing cost as a percentage of revenue when manufacturing execution systems and shop floor are integrated with enterprise applications Complex and Volatile Supply Chains Integrated Sales and Operations Planning Manufacturing Network Planning and Execution Logistics Fulfillment 12% Lower days in inventory in organizations where forecasts are dynamic and updated frequently Customer-Centric Sales and Marketing Price and Margin Order and Contract Customer Service and Support 17% Higher percentage of field sales achieving quota when sales pipeline is optimized for cross and add-on opportunities to be proactively pursued 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 30

31 SAP Point of View (PoVs) for Chemicals Customers : (examples) 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 31

32 Utilities Distribution (DSOs), Suppliers and Data : KPI Benchmarks Data Treatment Distribution Publication, Validation, operations and Estimation Distribution Operations Supplier Distribution Operations operations Configuration, Monitoring, and Communication Validation Estimated Benefits Energy loss reduction (technical and commercial) 2-4% Effectiveness and efficiency of settlement processes (electricity and gas) FTE reduction Cost avoidance: integration between CIS and EDM and ERP 40-60% 70-80% Estimated Benefits Energy portfolio management (reduction from 3% to 2% of energy procured from spot energy market) Cost avoidance: integration between CIS and EDM and ERP 20-40% 70-80% Estimated Benefits Improved meter reading productivity 8-10% Flexibility on time-of-use product creation FTE reduction 20-40% Improved billing/collections productivity 2-3% Cost to serve reduction with advanced metering infrastructures 30-40% Source: SAP Value Engineering Source: SAP Value Engineering Source: SAP Value Engineering 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 32

33 ENR Trends SAP ENR Innovations ENR KPI Benchmarks SAP ENR Community SAP 4 KSA 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 33

34 Some ENR Customers who engaged with SAP in new projects in 2014 Chemicals Oil & Gas Utilities Mill & Mining 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 34

35 SAP O&G Community Largest O&G Companies 85% Fortune 2000 Oil & Gas >70 million Barrels per day of oil is produced by SAP s oil and gas customers 800+ O&G customers worldwide Industry-driven: robust advisory councils ensure alignment Deep industry-specific capabilities Clear industry road map 40 years of delivering value to O&G Source: SAP analysis of Forbes 2000 rankings (May 2013) and SAP customer database as of May SAP SE or an SAP affiliate company. All rights reserved. Public 35

36 SAP O&G Value Chain Community National Oil Companies Integrated Majors Exploration & Production Midstream & Refining Downstream & Retailing Oil Field Services 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 36

37 SAP Chemicals Community 97% Chemicals Chemicals 97of the top 100 Chemicals Companies run SAP Chemicals customers run SAP worldwide Gain ~100 best-practice business processes Use our best-run chemicals maturity model Leverage a comprehensive chemical industry network Get access to industry-tailored consulting and industry value engineering services Source: SAP analysis of Chemical Week Billion Dollar Club Oct 2012 and SAP customer database as of May SAP SE or an SAP affiliate company. All rights reserved. Public 37

38 SAP Mining Community 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 38

39 SAP Mill Community Primary Metal Building Material Pulp & Paper Vast Majority in Steel run SAP 2000 in Primary Metals / 1700 in Fabricated Metals Large ones run SAP 1300 customers 60 Countries 10 out of top 10 run SAP 1000 Customers 70 Countries 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 39

40 SAP Utilities Community : 80% (Forbes 2000) run SAP utilities in 70 countries run SAP 4,000,000,000+ Utility bills generated with SAP 600+ Utilities managing Assets with SAP 300+ power generation companies run SAP 400+ municipal utilities run SAP 80% (Analysis Forbes 2000) run SAP 100+ partners co-innovate with SAP in Utilities 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 40

41 SAP Utilities Smart Metering and Smart Grids Selected Customers 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 41

42 Saudi Electricity Unified Billing among 5 regions went live with SAP Utilities for 7.5 Million customers SEC next innovation projects : Smart Metering and SmartGrids 2011 SAP AG. All rights reserved. 42

43 ENR Trends SAP ENR Innovations ENR KPI Benchmarks SAP ENR Community SAP 4 KSA 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 43

44 SAP Value proposal # 1 : Engaging with SAP in Transformation and Co-Innovation ENR Transformation & Digital Agenda Market Thought Leadership In ENR Co-Innovation with SAP in ENR SAP Labs R&D Design Thinking Value Prototyping ENR Industry Best Practices sharing SAP ENR Community Customers Best Practices Stories ENR Benchmarks and KPIs monitoring SAP ENR Benchmarking DB Compelling Business Cases 2011 SAP AG. All rights reserved. 44

45 Smart Meters MD US Process Orchestration or WSRM AMI Integration Middlew are S M P NetWeaver Gateway Multichannel Foundation for Utilities SM P HES: Head-End System MDUS: Meter Data Unification and Synchronization WSRM: Web Services Reliable Messaging SMP: SAP Mobility Platform C4C: SAP Cloud for Customer SAP Value Proposition #2 : setup a MENA Smart Metering Competence Center to meet MENA SmartGrids requirements Building / sharing of best practices Governance structure Project plan Blue prints Dissemination of knowledge and experience from other regions Resource sharing / delivery support SMCC Development of use cases and processes Platform definition Business Intelligence Suite HES 2-Tier 3-Tier ISU Device Mgt. EDM Billing Prepay ment Cont. Acct. Sales Service C Mgmt. R M Demand Side Web / Mobile Sandbox environment for prototyping Multires ource Schedul ing ERP + addon s N o S n- A S P A P C4C Work Manager (Mobile app) E it h e r Smart meter roll-out through external and/or internal service providers 2011 SAP AG. All rights reserved. 45

46 SAP Value Proposition #3 to KSA : Provide a «Cockpit Simulator» for Decision Support keeping KSA in the Energy Leadership seat. Project name «KSA-Energy Cockpit» Country level (Kingdom of Saudi Arabia) O&G Exploration & Production Hydrocarbon Value Chain Market Price conditions Local Consumption Conventional Capacity Renewable Capacity Demand & Supply Export KSA ENERGY LEADERSHIP Energy Players level (O&G, Industrials, Utilities, Operators) 2011 SAP AG. All rights reserved. 46

47 Energy Energy Leadership and Energy Predictions : SAP POV in MENA s media 2011 SAP AG. All rights reserved. 47

48 Thank you Maher Chebbo, PhD Energy GM Energy & Natural Resources (EMEA+MEE) SAP (Paris office President of ESMIG 2015 SAP SE or an SAP affiliate company. All rights reserved.