The Digital Core For Your Industry

Transcription

1 S/4HANA The Digital Core For Your Industry Next-Generation Business Suite for a Digital World

2 SAP S/4HANA : The Digital Core NEXT-GENERATION BUSINESS SUITE FOR A DIGITAL WORLD Digital transformation is timeless and recognizes no boundaries. To realize the business value of digital transformation, customers realize they need an end-to-end holistic approach. Our approach at SAP is simple and pragmatic. We help customers identify and capture value by connecting their businesses and people with customers and partners across their entire value chains. In technology terms, they are looking for digital core capabilities that leverage insight from the edge in real time: cloud solutions that accelerate agility and time to value. What SAP Industry Leaders Are Saying about SAP S/4HANA CHAKIB BOUHDARY Digital Transformation Officer New technologies are enabling new business capabilities and changing how companies do business. SAP S/4HANA supports that transformation, as it enables a step change in value creation and business simplification. This allows companies to do things differently and reinvent their businesses. MARTY MRUGAL Chief Innovation Officer, SAP North America Digital transformation is about how technology profoundly improves the performance and impact of business and the customer experience. With real-time data, businesses can respond immediately and dynamically to changing conditions. SAP S/4HANA links all aspects of businesses in a single, easy-to-use platform and helps simplify business processes to make way for true innovation. ISABELLA GROEGOR-CECHOWICZ Global General Manager, Public Services The engagement models are changing for federal, state, and local governments. Citizens are looking for personalized services, businesses are looking for smart regulations that enable engagement, response times are getting shorter. Governments need to rework their processes on their way to becoming digital governments. Powerful software platforms such as SAP S/4HANA are enabling this journey. 2 These core-to-edge capabilities of the SAP portfolio, powered by S/4HANA as the digital core, enables companies of all sizes to innovate across any line of business, within any industry, and seize the opportunities available in today s digital economy. PAT BAKEY President of SAP Industries ACHIM SCHNEIDER Global Head of Retail Business Unit SAP s considerable investment in the digital core, the SAP HANA platform, fashion management capabilities, and IoT bode well for SAP customers and prospects. IDC recommends that retailers evaluate how SAP s portfolio and road map has changed to serve them into the future. HENRY BAILEY Global Vice President, Utilities Business Solutions SAP S/4HANA delivers the bi-modal IT architecture utility companies need. It provides stability and long-term reliability for core processes, as well as supports constant change needed to address emerging dynamic business models such as demanding new energy services, providing utility as a service, better customer engagement, and managing distributed energy 3 resources.

3 Facts About SAP Why SAP? How SAP Supports Industry Digital Transformation TODAY SAP serves more than 345,000 customers in 190 countries spanning 26 industries. 80% of SAP customers are SMEs. The digitalization of business across all industries is happening rapidly. Companies are looking for new ways to deliver value to their customers and to stay ahead of new digitally native competitors. To survive, successful companies are taking advantage of new technologies to: SAP systems touch $22 trillion of consumer purchases around the world. More than 13,400 retailers in 121 countries are innovating with SAP solutions. 76% of the world s transaction revenue touches an SAP system. SAP CUSTOMERS INCLUDE WATCH VIDEO: SAP S/4HANA, The Digital Core 87% of the Forbes Global 2000 companies 98% of the 100 most-valued brands Reimagine business models Reimagine processes Reimagine roles Reimagine products READ EBOOK: SAP S/4HANA Customer Success Stories % of the Dow Jones top scoring sustainability companies This requires a new digital core: a new generation of ERP solutions that run in real time, eliminating the need to run businesses in batch mode. By integrating seamlessly with predictive, big data, and mobile technologies, companies can remove data silos with a single source of truth. LEARN MORE: Top 10 Reasons to Choose SAP S/4HANA Today VISIT SAP.COM: For solutions by industry FOCUSED ON INNOVATION 19 Development centers (SAP Labs) worldwide 14 Co-Innovation Labs worldwide 12 Innovation Centers Partner network with more than 15,500 SAP partner companies around the world 4 *As of January, For up-to-date facts, visit sap.com/corporate. 5

4 Discover the Value of SAP S/4HANA as a Digital Core for Industries Learn how SAP S/4HANA delivers value across industries. Select an industry below to begin. Automotive EC&O High Tech Insurance IM&C Public Sector Chemicals Telecommunications Mill: Building Products Consumer Products Mill: Metals Life Sciences Mill: Paper and Packaging Professional Services Mining Retail Oil & Gas Wholesale Utilities 6 7

5 SAP S/4HANA for Automotive KEY INITIATIVES Automotive companies play a key role in the digitalization of businesses across all industries through: The automotive world is driven by strong customer demand for hyperconnected products and services. The interconnectedness of people, places, and things is creating new and bigger business models, as digital technology permeates the driving experience and creates unique ways to engage customers. 11. Digitally enabled vehicles and 22. Innovative processes that leverage mobility services digital capabilities of the equipment they use They focus on five key initiatives that require new digital business capabilities: Digital smart products Digital supply chain and connected manufacturing Engaging the changing workforce Customer centricity Connected car and mobility services 8 9

6 SAP S/4HANA for Automotive THE NEED FOR A DIGITAL CORE IN AUTOMOTIVE Automotive companies require real-time insights that facilitate immediate execution and response. A digital core provides uninterrupted, real-time transactions and analytics. It also works with big data to provide connectivity to line-of-business extensions, enabling supporting processes, transforming supply chains into demand networks, and delivering outcomes instead of just products. SAP S/4HANA provides automotive companies with a proven framework to adopt industry best practices while attaining operational excellence focusing on collaborative product innovation, manufacturing and logistics, and sales to enable the five strategic priorities. SOURCES OF VALUE Support all automotive business processes from design and manufacturing to marketing, sales, and service. Simplify user experience across all devices. Simplify architecture with extensible processes, enabling digital business networks. Gain instant insights into operational and retail data, empowering decision makers. CUSTOMER STORIES KEY CAPABILITIES Manufacturing execution and insights. Facilitate digital supplier collaboration. Improve real-time integrated supply chain planning. Boost digital customer engagement. For more information, visit Bosch Faurecia 10 11

7 SAP S/4HANA for High Tech KEY INITIATIVES High-tech companies are at the forefront of the digital transformation and can better serve their customers by reimagining business models and business processes by: The high-tech industry is not just a key participant in the digital economy; it s the fundamental backbone. Technology is ubiquitous, powering every organization, network, transaction, piece of equipment, and consumer device. Software is now embedded in nearly all tech products. The pressure is increasing for high-tech companies to innovate at faster speeds. 11. Recognizing that companies need 22. Scaling with a platform to deliver to deliver outcomes, not just next-generation products and traditional products or services, services using the power of and generate new revenue streams an ecosystem of partners through results-driven offerings and developers They pursue four key initiatives that require new business capabilities along the value chain: Subscribing to outcomes Realizing a digital supply chain Providing digital smart products Achieving customer intimacy 12 13

8 SAP S/4HANA for High Tech THE NEED FOR A DIGITAL CORE IN HIGH TECH High-tech companies need to constantly innovate across their company value chains to drive profitable growth and adapt to how customers want to acquire, use, and pay for their products and services. The capabilities delivered with SAP S/4HANA and the prebuilt, native integration with the line-ofbusiness (LoB) solutions help ensure processes run smoothly and efficiently across the end-to-end total engagement life cycle enabling companies to balance supply and demand, drive sustainable revenue growth, and maintain margins. SOURCES OF VALUE Provide a digital platform for uninterrupted, real-time transactions and analytics, the ability to work with big data, and connectivity to LoB extensions. Provide high-tech companies with a proven framework to adopt industry best practices, while attaining operational excellence. Extend processes to easily connect to the whole ecosystem beyond their own company. Simplify and enhance employee engagement and productivity with role-based user experience. Get a single consolidated source of truth, down to the lowest level of granularity, enabling flexibility to adapt to new business models while attaining operational excellence. KEY CAPABILITIES Support all end-to-end high-tech business processes enhanced with embedded analytics and simulation capabilities. Support subscription-based business models, outcome-based solution offerings, and performance-based charging, Simplify order commitment and fulfillment through live inventory management, constraint-based scheduling, and advanced available-to-promise (ATP). Connect to business networks to form a digital ecosystem. Empower connected teams with 360-degree customer insights. For more information, visit CUSTOMER STORIES Varian Medical Systems Alliance Contract Manufacturing Sdn. Bhd

9 SAP S/4HANA for Industrial Machinery and Components KEY INITIATIVES IM&C companies are at the forefront of the digital transformation and can drive tremendous value in two main areas: The industrial machinery and components (IM&C) industry is at the heart of digital transformation worldwide, providing the intelligent machines and equipment needed for companies across all industries to digitally serve their customers and spearheading innovative processes like connected manufacturing and predictive maintenance and service. 11. Top-line growth through better 22. Bottom-line cost savings through solutions that are digitally enabled more efficient and effective digitally and more differentiated enabled processes In working with leading IM&C companies across the globe, SAP sees increased investments and energy around five strategic priorities: Customer centricity Serving the segment of one Digital smart products Digital supply chain and smart factories Servitization and new business models 16 17

10 SAP S/4HANA for Industrial Machinery and Components THE NEED FOR A DIGITAL CORE IN INDUSTRIAL MACHINERY AND COMPONENTS The right platform requires an IT architecture that provides both stability and long-term reliability for core enterprise processes, while simultaneously allowing for flexibility in areas where change is happening on a constant basis. A digital core is the foundation for the fundamental processes that need to run consistently and flexibly. This digital core provides uninterrupted, real-time transactions and analytics, the ability to work with big data, as well as connectivity to all lines of business. SOURCES OF VALUE Big data in real time along the entire value chain. Simplified processes with no batch runs. Built-in analytics for immediate insight to action. Simplified user experience across all device KEY CAPABILITIES R&D/Engineering: Control costs and enhance quality by streamlining collaboration. Sales & Marketing: Empower connected teams with 360-degree customer insights. Supply Chain: Respond with agility to customer requirements. Manufacturing: Deliver high-quality, compliant products. Aftermarket Service: Provide exceptional levels of service to every customer. SAP S/4HANA was specifically developed to represent the digital core in this bi-modal IT architecture. The suite provides IM&C companies with a proven framework to adopt industry best practices, while attaining operational excellence across the entire value chain. CUSTOMER STORIES Vectus Industries Limited Stara S/A Indústria de Implementos Agrícolas For more information, visit

11 SAP S/4HANA for Chemicals KEY INITIATIVES To deliver sustainable growth, performance, and innovation, chemical companies must inspire and shape a digital chemical world by: Established strategic models in the chemical industry are threatened, and CEOs must transform their business models and processes in order to find answers to questions that keep them up at night: How do you quickly integrate acquisitions and release synergies? How do you fight commoditization by selling value-added services instead of products? How do you rapidly enter new markets or segments? 11. Recognizing that recent advancements 22. Mastering the market challenges and acting in digital technology offer unprecedented as game-changers or digital disruptors levels of connectivity, granularity, and speed in accessing, processing, and analyzing huge amounts of data They pursue four key initiatives that require new business capabilities along the value chain: Sell business outcomes instead of products Enable no-touch manufacturing and order fulfillment Compete as an ecosystem Increase marketdriven strategic agility 20 21

12 SAP S/4HANA for Chemicals THE NEED FOR A DIGITAL CORE IN CHEMICALS In order to accelerate innovation, streamline operations, and meet more and more demanding customer needs, the chemical industry needs a game-changing and digitally enabled new-generation ERP solution. SAP S/4HANA delivers this with realtime optimizations for inventory, supply planning, plant scheduling, logistics, and product pricing. It provides simulation capabilities and predictive tools to drive smarter decisions from shop floor to top floor, improve asset reliability, and reduce plant outages. Moreover, it provides strategic agility to rapidly enter new markets, analyze and align product portfolios, or reflect organizational changes in onetenth the time it takes with today s systems. SOURCES OF VALUE Provide simplified data models and processes in key areas, such as inventory management and stock valuation. Allow real-time insights into financial and operational performance data from shop floor to top floor; offer role-based, simple, and intuitive user experiences to drive decisionmaking at any time, anywhere. Support end-to-end chemical core processes, enhanced with embedded analytics and simulation capabilities. Extend processes to easily connect to business networks, forming a digital ecosystem. CUSTOMER STORIES Asian Paints DCM Shriram Ltd KEY CAPABILITIES Collaborate in open innovation networks. Leverage advanced algorithms and simulation capabilities to maximize use of intellectual property. Enable the digital plant, using predictive models to maximize asset uptime and operational performance. Simplify order commitment and fulfillment through live inventory management, constraint-based scheduling, and advanced available-to-promise (ATP). Manage prices and margins in real time. For more information, visit

13 SAP S/4HANA for Building Products KEY INITIATIVES Innovative building products companies are using digital technologies to differentiate and compete by: The building products (home-building) industry is changing. The middle class is growing, the standard of living is increasing, and homeowners are increasingly involved in purchase decisions. Leaders in the industry are transitioning from solely manufacturing products to providing innovative technological solutions benefiting homeowners and the environment by reimagining business models, processes, and the way people work. 11. Anticipating real-time demand and supply, 22. Using a flexible business infrastructure controlling energy consumption, operating that better balances demand with resilient supply chains, and innovating the production, focuses on profitability, customer experience and yields more-efficient operations They pursue four key initiatives that require new business capabilities along the value chain: Customer centricity Digital supply chain and connected manufacturing Innovative and smart products New business models and value-added services 24 25

14 SAP S/4HANA for Building Products THE NEED FOR A DIGITAL CORE IN BUILDING PRODUCTS Building products firms will need to reengineer their business processes and evaluate if they have the right technology platform to support their vision. This platform requires an IT architecture that provides both stability and long-term reliability for core enterprise processes and, at the same time, allows for flexibility in areas where change is happening constantly such as customer demand and commodity pricing. A digital core is the foundation for the processes that need to run consistently and flexibly. It provides uninterrupted, real-time transactions and analytics, the ability to work with big data, and connectivity to important supporting functions, such as talent sourcing and procurement. SOURCES OF VALUE Empower decision-makers with instant insights into demand, supply, and customer needs. Simplify and enhance employee engagement and productivity with role-based user experiences. Get a single consolidated source of truth, including classification and configuration information at the lowest level of granularity. See a real-time analysis of the flow of all materials, enabling more simulations. CUSTOMER STORIES Vectus ManWah KEY CAPABILITIES Anticipate and manage demand, evaluate potential impacts, and quickly adapt to market changes. Effectively manage the complete supply chain from purchase to delivery. Increase asset utilization, track costs, and enable energy-efficient, safe, and reliable operations. Boost sales with insight into customer behavior and sales order commitment. For more information, visit

15 SAP S/4HANA for Metals KEY INITIATIVES Innovative metal companies are using digital technologies to differentiate and compete by: Companies in the global metals industry strive to differentiate themselves in this age of slow growing demand, oversupply, and intensified competition on inter-material substitution. How are thought leaders responding? By better matching demand with production, focusing on profitability, and establishing more efficient integrated operations and control systems. 11. Anticipating real-time demand and supply, 22. Using a flexible business infrastructure controlling energy consumption, operating that better balances demand with resilient supply chains, and innovating the production, focuses on profitability, customer experience and yields more-efficient operations They pursue five key initiatives that require new business capabilities along the value chain: Innovative products Small lot sizes and individualization Customer collaboration Value-added services Disintermediation 28 29

16 SAP S/4HANA for Metals THE NEED FOR A DIGITAL CORE IN METALS Metals firms will need to reengineer their business processes and evaluate if they have the right technology platform to support their vision. This platform requires an IT architecture that provides both stability and long-term reliability for core enterprise processes and, at the same time, allows for flexibility in areas where change is happening constantly, such as customer demand and commodity pricing. A digital core is the foundation for the processes that need to run consistently and flexibly. It provides uninterrupted, real-time transactions and analytics, the ability to work with big data, and connectivity to important supporting functions such as talent sourcing and procurement. SOURCES OF VALUE Empower decision-makers with instant insights into demand, supply, and customer information. Simplify and enhance employee engagement and productivity with role-based user experience. Get a single consolidated source of truth, including classification and configuration information at the lowest level of granularity. Enable more simulations with real-time analysis of the flow of all materials. CUSTOMER STORIES Klöckner & Co Severstal KEY CAPABILITIES Anticipate and manage demand, evaluate potential impacts, and quickly adapt to market changes. Manage the complete supply chain effectively from purchase to delivery. Increase asset utilization, track cost, and enable energy-efficient, safe, and reliable operations. Boost sales with insight into customer behavior and sales order commitment. For more information, visit

17 SAP S/4HANA for Paper and Packaging KEY INITIATIVES Innovative paper and packaging companies are using digital technologies to differentiate and compete by: In today s digital economy, paper and packaging firms aim to design systems that better balance demand with production, focus on profitability, and yield more efficient operations. How are thought leaders responding? By meeting ever-changing customer expectations, cutting production costs, and supporting customized products at small lot sizes. 11. Anticipating real-time demand and supply, 22. Using a flexible business infrastructure controlling energy consumption, operating that better balances demand with resilient supply chains, and innovating the production, focuses on profitability, customer experience and yields more efficient operations They pursue five key initiatives that require new business capabilities along the value chain: Innovative products Small lot sizes and individualization Customer collaboration Value-added services Disintermediation 32 33

18 SAP S/4HANA for Paper and Packaging THE NEED FOR A DIGITAL CORE IN PAPER AND PACKAGING Paper and packaging firms will need to reengineer their business processes and evaluate if they have the right technology platform to support their vision. This platform requires an IT architecture that provides both stability and reliability for core enterprise processes and, at the same time, allows for flexibility in areas where change is happening constantly, such as customer demand and commodity pricing. A digital core is the foundation for the processes that need to run consistently and flexibly. It provides uninterrupted, real-time transactions and analytics, the ability to work with big data, and connectivity to important supporting functions such as talent sourcing and procurement. SOURCES OF VALUE Empower decision makers with instant insights into demand, supply, and customer information. Simplify and enhance employee engagement and productivity with role-based user experiences. Get a single consolidated source of truth, including classification and configuration information at the lowest level of granularity. Gain real-time analysis of the flow of all materials, enabling many more simulations. CUSTOMER STORIES Sappi Pregis Packaging KEY CAPABILITIES Anticipate and manage demand, evaluate potential impacts, and quickly adapt to market changes. Effectively manage the complete supply chain from purchase to delivery. Increase asset utilization, track costs, and enable energy-efficient, safe, and reliable operations. Boost sales with insight into customer behavior and sales order commitment. For more information, visit

19 SAP S/4HANA for Mining KEY INITIATIVES Innovative mining companies are using digital technologies to differentiate and compete by: Mining is going through a transformation as it enters the digital age, striving to thrive despite volatile commodity prices, worker shortages, and decreasing ore grades. Thought leaders are leveraging new processes and technology to support better real-time decision-making; establishing more automated, agile operations; and developing employees into knowledge workers. 11. Integrating supply chain planning and 22. Using a flexible business infrastructure execution, building safer mining operations, that enables agile mining, focuses on and increasing productivity profitability, and yields more efficient operations They pursue four key initiatives that require new business capabilities along the value chain: Make the business safer and more predictable Collaborate with customers, suppliers, and workers Support industrial flexibility and commercial agility Increase productivity through automation 36 37

20 SAP S/4HANA for Mining THE NEED FOR A DIGITAL CORE IN MINING Mining firms will need to reengineer their business processes and evaluate if they have the right technology platform to support their vision. This platform requires an IT architecture that provides both stability and long-term reliability for core enterprise processes and, at the same time, allows for flexibility in areas where change is happening constantly, such as commodity prices. A digital core is the foundation for the processes that need to run consistently and flexibly. It provides uninterrupted, real-time transactions and analytics, the ability to work with big data, and connectivity to important supporting functions, such as talent sourcing and procurement. SOURCES OF VALUE Empower decision-makers with instant insights into demand, supply, and customer information. Simplify and enhance employee engagement and productivity with role-based user experience. Get a single consolidated source of truth, down to the lowest level of granularity. Gain real-time analysis of the flow of all materials, enabling many more simulations. CUSTOMER STORIES Ashapura Minchem PanAust KEY CAPABILITIES Anticipate and manage demand, evaluate potential impacts, and quickly adapt to market changes. Improve profitability through effective sales contract handling and supply chain management. Increase asset utilization, track costs, and enable energy-efficient, safe, and reliable mining operations. Optimize mining and downstream processing operations through integration and business intelligence. For more information, visit

21 SAP S/4HANA for Oil & Gas KEY INITIATIVES The oil and gas industry is responding to a digital revolution on both the supply and demand sides of the value chain through: The energy world is experiencing a revolution on both the supply and demand sides of the value chain. To survive and thrive in the digital era, oil and gas companies need to reimagine their business models and reach new levels of safety, cost control, and agility. New technology such as hyperconnectivity, supercomputing, cloud computing, and smart technology can help. 11. Moving away from traditional, vertically 21. Breaking free from traditional energy integrated business models to those demand and capturing value in three that will replace access to reserves and main areas: lower costs, greater portfolio capital with access to information as the diversity, and more outcome-focused competitive differentiator business models They pursue four key initiatives that require new business capabilities along the value chain: Beyond-thebarrel energy outcome providers Products and service digitalization Ability to compete as an ecosystem Digital platform 40 41

22 SAP S/4HANA for Oil and Gas THE NEED FOR A DIGITAL CORE IN OIL & GAS Oil and gas companies can no longer compete unless complexity is reduced, business is reinvented, and data becomes the fuel for value creation for customers and shareholders. SAP S/4HANA is the real-time platform at the core of the digital energy network, enabling companies to connect seamlessly both internally and externally. The digital energy network starts with a digital core that interconnects all aspects of the value network in real time to drive business outcomes. The digital core gives oil and gas companies the opportunity to rationalize and simplify core business processes and integrate processes with analytics in real time to enable a smarter, faster, and simpler enterprise. SOURCES OF VALUE Empower frontiline users by simplifying the user experience with an end-user-centric, consumer-grade experience Provide an advanced digital data architecture with a single source of truth for both transactions and analytics with a simplified data model and architecture. Simplify processes such as project orchestration, hydrocarbon processing, hydrocarbon logistics, and operational integrity. CUSTOMER STORIES Murphy Oil Corporation C&J Energy Services KEY CAPABILITIES Gain real-time access to resource availability, skill sets, and organizational assignments during project staffing process. Improve efficiency and user experience across field data capture, allocation, and deferment management with FIORI-based interfaces. Get real-time inventory planning for ease of use and enhanced simulations for schedulers. Integrate asset performance data with manufacturer thresholds for real-time insight on potential failures. For more information, visit

23 SAP S/4HANA for Utilities KEY INITIATIVES Utility companies are at the forefront of the digital transformation and are reimagining business models and business processes by: The digital economy needs clean, dependable, and affordable water and energy as the world population continues to grow. This will foster new business models and processes. Utilities will have to take advantage of new technologies, such as hyperconnectivity, supercomputing, smart technology, and cyber security. 11. Facing new competition and entering new 22. Fostering new business models markets to maintain declining margins and and processes, transforming work remain sustainable in a competitive and collaborative digital economy They pursue four key initiatives that require new business capabilities along the value chain: Energy generation excellence Smart and efficient distribution Demand/supplybalancing services Omnichannel retail to digitized prosumers 44 45

24 SAP S/4HANA for Utilities THE NEED FOR A DIGITAL CORE IN UTILITIES Utility companies can no longer compete without reducing complexity, reinventing business, and utilizing data as the fuel for value creation for customers and shareholders. SAP S/4HANA is the real-time platform at the core of the digital energy network, enabling companies to seamlessly connect both internally and externally. The digital energy network starts with a digital core that interconnects all aspects of the value network in real time to drive business outcomes. A digital core gives utility companies the opportunity to rationalize and simplify core business processes and instantly integrate processes with analytics to enable a smarter, faster, and simpler enterprise. SOURCES OF VALUE Simplification of the user experience empowers frontline users with an end-usercentric, consumer-grade experience. Providing an advanced digital data architecture with a single source of truth for both transactions and analytics. Simplifying processes such as customer engagement, asset management, and financial optimization. CUSTOMER STORIES Farys CILE KEY CAPABILITIES Omnichannel customer interaction. Billing of energy and non-energy related services. Collaboration and knowledge management. Enterprise risk and compliance management. For more information, visit

25 SAP S/4HANA for EC&O KEY INITIATIVES Engineering, construction, and operations companies are increasing margins and reducing surprises by industrializing their processes with: The projected size of the construction market in 2030 is $15 trillion, up from $8 trillion today. While this is a huge opportunity for the construction industry, projects are getting more complex, with many inefficient and wasteful practices. Successful companies will grow by increasing market share, expanding internationally, and even operating some of the assets they build. 11. Proven, industrial, and lean processes; 21. Real-time forecasting, monitoring, real-time monitoring and feedback; and optimization of complex projects and industry best practices to achieve operational excellence They pursue four key initiatives that require new business capabilities along the value chain: Extensive verticalization and new contract models Asset or facility-asa-service Digitization of knowledge/ expertise Digitization of the construction site 48 49

26 SAP S/4HANA for EC&O THE NEED FOR A DIGITAL CORE IN EC&O EC&O firms need to manage the end-to-end project life cycle, from the initial bid, design, engineering, procurement, and construction to the handover and commissioning to the owner and operator. The capabilities delivered with SAP S/4HANA and the preconfigured, native integration with line-ofbusiness solutions helps ensure processes run smoothly and efficiently across the project life cycle, allowing firms to balance supply and demand, drive sustainable revenue growth, and maintaining margins. SOURCES OF VALUE Support end-to-end EC&O core processes, from bid to billing and revenue recognition. Provide instant insights into operational project management data, empowering decision-makers. Gain actionable insights on unified, real-time data and processes, with built-in suggestions for decision support. Offer front-line users a user-centric, consumer-grade experience because frontline employees add value on the sites. CUSTOMER STORIES KEY CAPABILITIES Drive simplification and innovation in how business users work, with a role-based, consistent user experience available on any device. Provide advanced digital data architecture that has a single source of the truth for both transactions and analytics in real time. Simplify key capabilities in finance and project management. Unite various industry solutions using harmonized data models and objects through one platform, opening up the potential for synergies. For more information, visit Swiss Property Vilara Corporation 50 51

27 SAP S/4HANA for INSURANCE KEY INITIATIVES In order to support digital transformation, insurance companies need to focus on risk mitigation and prevention rather than on compensation for a loss. They can achieve this by: The boundaries of traditional insurance value chains are changing, new competitors are disrupting the market, and customers expect increasingly personalized products and services. To survive and thrive in the digital era, insurers need to reimagine their business models and transition from risk protection to risk prevention with a live business platform to better serve their customers. 11. Using the explosion of information to 21. Reimagining business models to deliver turn data into insights to get closer to new customer value in the connected customers digital economy They pursue 5 key initiatives that require new business capabilities along the value chain: Digital lifestyle insurer Connected insurer Data-driven insurer Omnichannel experience Product agility 52 53

28 v SAP S/4HANA for Insurance THE NEED FOR A DIGITAL CORE IN INSURANCE To take advantage of the digital economy, insurers need to address three key challenges. First, they need to improve risk mitigation by evolving from a pure focus on financial loss compensation to physical risk prevention. Next, they must meet the challenges from disruptive competitors by adopting an innovative approach that enables rapid solution development and rollout. Lastly, they must manage an enormous amount of data generated by connected networks to develop and deliver leadingedge products and services. Addressing these challenges not only requires a business mindset and dedication, but it also necessitates a digital business core, such as SAP S/4HANA, to facilitate transformation. SOURCES OF VALUE Provide value to insurers and end users by streamlining the user experience, architecture, and business processes. Increase speed to market, improve real-time profitability reporting, and adopt an evolved approach to running a live digital organization operationally and financially. Empower frontline users with a user-centric, consumer-grade experience. Adopt a data model that provides an advanced digital data architecture, which provides a single source of the truth for transactions and analytics in real time. CUSTOMER STORIES Munich Re Ageas/Troo KEY CAPABILITIES Support new business models and enhance agility for policy creation. Collaborate with other departments and external stakeholders to reduce complexity. Manage risk and help ensure compliance by establishing finance as a partner for strategic decisions. Analyze IoT data and deliver innovative products and services that improve customer loyalty and satisfaction. For more information, visit

29 SAP S/4HANA for the Public Sector KEY INITIATIVES Public sector organizations know they need to transform for the digital era to meet policy goals and improve people s lives by: This is the age of digital transformation, and everything is connected. In the public sector, as in other industries, technology and public policy have become inseparable. Government organizations that cannot rapidly adjust to technological advances cannot achieve their policy objectives. 11. Recognizing that they need to establish 21. Creating an IT architecture that provides a coherent digital vision with a clearly long-term stability for core processes articulated road map for their digital and agility where change is constant transformation They pursue four key initiatives that require new capabilities along the value chain: Digitizing government management and operations for improved performance Data-driven government for effective decisionmaking Smart cities for better living Citizen centricity for better societal outcomes 56 57

30 SAP S/4HANA for the Public Sector THE NEED FOR A DIGITAL CORE IN THE PUBLIC SECTOR To succeed, governments will need to put a coherent digital vision in place with a clearly articulated road map for their digital transformation. This platform requires an IT architecture that provides both stability and long-term reliability for core government processes, while also allowing for flexibility in areas where change is happening on a constant basis. A digital core is the foundation for the core processes that need to run consistently and flexibly. It provides uninterrupted, real-time transactions and analytics; the ability to work with big data; and connectivity to line-of-business (LoB) extensions that enable supporting processes, such as talent sourcing or emergency response. SOURCES OF VALUE SAP S/4HANA was developed specifically to represent the digital core. It provides government agencies with a proven framework to adopt industry best practices while attaining operational excellence across core financial, procurement, and planning processes. CUSTOMER STORIES European Schools Diakonie Michaelshoven KEY CAPABILITIES Transform execution from multistep processes with latency to real-time processes with actionable insights to support the end-to-end public sector value chain. Use live, predictive, real-time insights for better decisions. Enable an anywhere, any-device, mobile-first, role-based user experience that simplifies and enhances employee engagement and productivity. Sustain a digital connection to constituents with real-time, precise interactions. For more information, visit

31 SAP S/4HANA for the Telecommunications KEY INITIATIVES Telecommunications companies are at the very core of the digital transformation and can better serve their customers by reimagining business models and business processes by: In the age of digital transformation, everything and everyone is connected. Telecommunications companies are providing that connectivity but also need to ensure that they are not casualties of the digital revolution they are helping to create. How can they deliver a new customer experience? How can they deliver new business models to leverage their extensive networks? 11. Recognizing that their traditional 21. Aggressively delivering new revenue, communications business is shrinking generating services to grow the and new market entrants are competing business while consistently looking with OTT services at cost containment They pursue 5 key initiatives that require new business capabilities along the value chain: $ Monetize a sensor-based world Place big bets on the ecosystem Serve a segment of one Make big data work Innovate with agility 60 61

32 SAP S/4HANA for the Telecommunications THE NEED FOR A DIGITAL CORE IN TELECOMMUNICATIONS The telecommunications industry provides the foundation of what s driving the digital transformation of all other industries. Communications Service Providers (CSPs) that invest in a digital core have the opportunity to become strategic partners to all their customers with services that help them evolve in the digital era. SOURCES OF VALUE Support end-to-end telecommunications core processes from operations and margin management to marketing and customer service. Gain real-time insights into billing operations. Create and deliver financial reports in record time. Establish a simple, intuitive, and consistent user interface across all devices. KEY CAPABILITIES Cost management and profitability analysis Order and contract management Boost digital customer engagement Simplified billing management The capabilities delivered with SAP S/4HANA enable CSPs to run their business more smoothly and efficiently, allowing them the agility required in a fast moving market. SAP S/4HANA provides CSPs with better visibility into subscribers, services, and financials and quickly launch new services. CUSTOMER STORIES Turk Telekom Eurona Telecom For more information, visit

33 SAP S/4HANA for Consumer Products KEY INITIATIVES Consumer products companies are focused on the following two types of opportunities: Consumer products companies are embracing the journey from carts to hearts, using innovation, brand equity, and process expertise to forge deeper connections with consumers. Many consumer products companies are reimagining business models, business processes, and work itself to create entirely new drivers for growth. 11. Recognizing that the digital economy has 22. Taking charge of their destiny by building dramatically changed the competitive digital business capabilities and quickly landscape and brought customer identifying and acting on new growth engagement to the spotlight opportunities They pursue five key initiatives that require new business capabilities along the value chain: Compete as an ecosystem by integrating vertically and virtually Deliver products as services Serve the segment of one Build hyperconnected business networks Model business outcomes to drive speed at scale 64 65

34 SAP S/4HANA for Consumer Products THE NEED FOR A DIGITAL CORE IN CONSUMER PRODUCTS To succeed, consumer products companies will need to put in place a digital vision that is tightly linked with a differentiating growth strategy. This vision will need to connect seamlessly from R&D and innovation through procurement and agile manufacturing, as well as a real-time supply chain that enables visibility from source to sale. Equally important are the sales, marketing, and commerce capabilities that pull in consumers and make sure they re satisfied once they engage. To execute on such a vision, consumer products companies will need a technology platform such as SAP S/4HANA that can provide stability and long-term reliability for core enterprise processes, while allowing for flexibility in areas of frequent change. SOURCES OF VALUE Enable an anywhere, any-device, mobile-first, role-based user experience that simplifies and enhances employee engagement and productivity, transforming the way work gets done. Streamline material requirement planning to allow for a new working model, transforming the execution into real-time processes with superior benefits. CUSTOMER STORIES doterra Hershey s KEY CAPABILITIES Get live inventory management through a redesigned data model. Gain advanced and embedded production planning and detailed scheduling capabilities. Streamline data and processes with embedded analytics and decision support. For more information, visit

35 SAP S/4HANA for Life Sciences KEY INITIATIVES Given ongoing patent expiries, margin erosion, and reduced reimbursements, life sciences companies must reimagine their business by: Life sciences companies are facing new price pressures and competitive threats as a result of new entrants into the marketplace changing the way they deliver products. This is forcing companies to adopt new approaches or face stagnant and declining revenue margins and growth. As a result, life sciences companies are rethinking their business models and the value chain. 11. Improving therapeutic outcomes at a 22. Leveraging digital to drive top-line revenue lower cost as the current rates are not while reducing operational inefficiencies sustainable for payers, providers, and and the total cost of operations patients They pursue 3 key initiatives that require new business capabilities along the value chain: Customer centricity to improve patient outcomes Compete as an ecosystem by integrating suppliers and contractors Digital supply chain and smart factory 68 69

36 SAP S/4HANA for Life Sciences THE NEED FOR A DIGITAL CORE IN LIFE SCIENCES Today, patients are more accountable for their care and have greater access to their personal health information. Patients and payers are seeking costeffective personalized treatments with superior outcomes. SAP S/4HANA is the foundation for the core processes that need to run consistently and flexibly. It provides uninterrupted, real-time transactions and analytics, the ability to work with large volumes of data, and connectivity to lineof-business extensions that enable supporting processes. SAP S/4HANA provides life sciences companies with a proven framework to adopt industry best practices while attaining operational excellence. SOURCES OF VALUE Natively integrate with various specialized solutions, speeding up integration and reducing interface complexity. Ability to run analytics on the transactional system, providing real-time insights for quick and informed decision making, and drill down to find root causes and reviewing options. Simplified processes transforming the way business processes are done. CUSTOMER STORIES Horizon Pharma Huvitz KEY CAPABILITIES Enable handling of process exceptions and quick responses to keep your processes running smoothly and improve customer satisfaction. Simplify and enhance employee engagement and productivity with an anywhere, any-device, mobilefirst, role-based user experience. Transform execution from multistep, batch-driven processes to real-time processes with actionable insights. For more information, visit

37 SAP S/4HANA for Professional Services KEY INITIATIVES Professional services firms are at the forefront of the digital transformation and can better serve customers by reimagining business models through new business capabilities by: Professional services firms need to digitize the fundamentals: talent, service delivery, and customer engagement. Firms have long focused on linear growth and now need to break the dependency on revenue growth to headcount growth. Firms will move to outcome-based engagements, knowledge-as-a-service delivery models, and open talent networks. 11. Recognizing that ongoing disruption 22. Extending workforce management to the classic time and materials beyond the four walls of the model is driven by customer enterprise and engaging external expectations to have outcomebased engagements talent They pursue three key initiatives that require new business capabilities along the value chain: Outcome-based engagements Monetizing life-cycle services Sourcing expertise in an open talent economy 72 73

38 SAP S/4HANA for Professional Services THE NEED FOR A DIGITAL CORE IN PROFESSIONAL SERVICES Professional Services firms are embracing digital technologies to better serve their customers. A digital core is the foundation for the core processes that need to run consistently and flexibly. It provides uninterrupted, real-time transactions and analytics, the ability to work with big data, and native integration to line-of-business (LoB) extensions that enable supporting processes, such as talent sourcing and networks. SOURCES OF VALUE Harmonize user experience across all devices to enable frontline employees to better deliver value to clients. Simplify data architecture with no aggregates and no redundancies, enabling flexibility to adapt to outcome-based business models. Streamline business processes by transforming the execution from multi-step, batch driven processes with latency in terms of key performance indicators to real-time processes with actionable insights. KEY CAPABILITIES Get an intuitive user experience on any device, providing a single source for all project-related information Gain real-time revenue recognition and improved risk management. Connect to business networks to form a digital ecosystem with easily extensible processes. Get reports in real time with the lowest level of detail. SAP S/4HANA provides firms with a proven framework to adopt industry best practices, while attaining operational excellence, specifically across core financial and engagement management processes. CUSTOMER STORIES Cintas Delaware Consulting For more information, visit

39 SAP S/4HANA for Retail KEY INITIATIVES Retail companies are at the forefront of Digital Transformation and can better serve consumers by: This is the age of digital transformation, and everything is connected. Retailer CEOs need to keep up with innovation cycles that are becoming 5 10x faster and to answer these tough questions: How do you build a customer experience that new competitors cannot easily replicate? How do you conquer new segments or markets? How do you create new business models to outpace existing competitors that change how to make money? 11. Recognizing that ongoing disruption 22. Taking charge of their destiny by to the classic retail model is driven building digital business capabilities by ever-changing consumers and quickly identifying and acting expectations and adoption of smart on new growth opportunities technologies They pursue five key initiatives that require new business capabilities along the value chain: Customer centricity Serving the segment of one Digital consumer supply chain Smart retail technology Monetization of new customer offers 76 77

40 SAP S/4HANA for Retail THE NEED FOR A DIGITAL CORE TO OPTIMIZE MERCHANDISING MANAGEMENT IN RETAIL Retail is a unique industry that requires flawless execution. The end-to-end life cycle of delivering products and services, while providing outstanding customer experiences, is a unique challenge that requires accuracy to win every time. SOURCES OF VALUE Support end-to-end retail core processes, from master data to point-of-sales (POS) connectivity. Provide instant insights into operational retail data, empowering decision-makers. Connect to business networks to form a digital ecosystem with easily extensible processes. Gain better support for administrators and store associates with a simple and intuitive user experience. KEY CAPABILITIES Provide information to customer service or shop floor operations with role-driven processes. Keep up with customers expectations of worldclass shopping experiences with omnichannel order execution and fulfillment based on real-time sales and inventory information. Open up the potential for synergies and crossscenarios with an industry to core platform that unites various industry solutions using harmonized data models and objects. SAP S/4HANA Retail s capabilities for merchandise management and its many integration points into the complementing S/4HANA retail solutions help ensure processes run smoothly and efficiently across the endto-end total engagement life cycle. It can help retailers become ready to serve their customers at any given moment with the right product at the right price wherever they need and however they choose to engage. CUSTOMER STORIES SnowPeak Electronica Steren For more information, visit

41 SAP S/4HANA for Wholesale Distribution KEY INITIATIVES Wholesale distribution companies need to reimagine business models and business processes to find new revenue and profit sources by: Wholesale distributors must evolve faster, become more efficient, and provide memorable customer experiences. Leading distributors are asking: What are the profitable new business models and trends? How do we capitalize on the demand for more and new services in a hyperconnected world? Or are the new market disruptors the real threat? 11. Reinventing the business from 22. Proactively addressing operational a warehouse of products fulfilling inefficiencies and impacting demand to an information-centric bottom-line results while becoming company that uses new business easier to engage in business models to gain a competitive advantage They pursue three key initiatives that require new business capabilities along the value chain: Value-added services distributor Real-time distributor Infinite inventory distributor 80 81

42 SAP S/4HANA for Wholesale Distribution THE NEED FOR A DIGITAL CORE IN WHOLESALE DISTRIBUTION Distributors must reinvent themselves from a warehouse of products for serving demand to information-centric companies that utilize new business models to gain a competitive advantage, all while delivering premium, consistent customer service. Using SAP S/4 HANA at the digital core provides uninterrupted, real-time transactions and analytics, and the ability to work proactively. This provides a proven framework to attain operational excellence, specifically across order management and inventory management processes. The value from SAP S/4HANA comes through simplifying the user experience, architecture, and process. SOURCES OF VALUE Simplify of the user experience, architecture, and process. Enable an anywhere, any-device, mobile-first, role-based user experience that simplifies and enhances employee engagement and productivity, transforming the way sales order management gets done. Provide re-engineered and simplified real-time inventory management with inventory transparency down to the lowest level of granularity. CUSTOMER STORIES Inabata & Co. Ltd. ScanSource Inc. KEY CAPABILITIES Deliver the right order on schedule by collaborating enterprise-wide in real time. Provide quick visibility into organizational spend and suppliers. Streamline vendor selection, sourcing negotiation, performance measurement, and invoicing. Unify all customer and market data into a single view. For more information, visit

43 2017 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. SAP and other SAP products and services mentioned herein, as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE s or its affiliated companies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions. 84 S/4HANA