Connected Products A glimpse on the R&D / Engineering Line of Business Product Roadmap

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1 Connected Products A glimpse on the R&D / Engineering Line of Business Product Roadmap Johan Malmström S/4HANA Business Architect SAP Nordic October SAP SE or an SAP affiliate company. All rights reserved. 1

2 Legal Disclaimer The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has 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's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP 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. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP s willful misconduct or gross negligence. 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 forwardlooking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

3 PLM is a Strategy Connect your Company Strategy with your Customer & Product Strategy with the SAP Extended Supply Chain Improve People s Lives Internet of Things Monitor Personalized Solutions Product Networks Plan Design Operate Customer Centricity Demand Networks Respond Deliver Produce SAP HANA Platform

4 Market Trends SOLUTION INDIVIDUALIZATION SPEED OF INNOVATION SMARTER PRODUCTS 52% of manufacturing companies expect to be highly vertically integrated in the next five years Source: The Chief Supply Chain Officer Report 2014, Sep 2014, SCM World 81% of CEOs agree that speed of innovation is business critical Source: Forbes, Global CXO Outlook: Growth Strategies for 2012 and Beyond 7.6% Average annual increase in cost of regulatory compliance for manufacturing companies Source: NERA Economic Consulting

5 Business Imperatives and internal expectations continue to rise. Expectations Product Performance Market Expansion Solution Profitability Time

6 SAP Connected Products Delivers a product innovation platform that effectively manages, translates and integrates customer-driven engineering innovations throughout the enterprise and into the market by orchestrating all business functions and xbom requirements Projects & Portfolios orchestrate all necessary resources and projects to meet market needs & portfolio goals Formulation Engineering accelerate innovation through collaborative product networks Design HANA capture and enable actionable intelligence from external product networks power your product innovation platform to operate at the speed of business

7 Enabling Product Individualization Flexible Configuration Produce Respond Plan Variant Configuration Operate Design E-Chemistry Deliver Customer Sell xbom Management deliver market expansion

8 Flexible Configuration Connected Engineering Customer Story HELLA runs better using SAP PLM and ultimately that helps a number of major brands of automobiles run better too. Manuela Wallmeier, PLM Technologies and System Manager, HELLA

9 Flexible Configuration Connected Formulation Customer Story ExxonMobil custom engineers lubricants using SAP Recipe Development to enable speed and efficiency of product development while meeting customer demands.

10 Flexible Configuration Visual Engineering Demo Quickly and visually manage the handover to manufacturing Manage BOM and routings directly from the visual context Simplify and improve change management process

11 Flexible Configuration Recipe Development Video Tate & Lyle Rapidly bring innovations from the lab through production to the customer Interface with core ERP that drives the rest of the business Accelerate handover and manage the change process

12 Create Smarter Products Product data assimilation Design Hub Systems Engineering Product Definition Data Sources IOT Requirements Management CAD Packaging Software Simulations Regulatory Operational Data Usage Data Social Data Product Compliance design product performance

13 Product Data Assimilation Engineering Control Center Comprehensive authoring tool integration to SAP s product innovation platform Ideal interface for authoring users Intelligent process support

14 Product Data Assimilation Customer Story Successfully rolled out a 3 month implementation for SAP Engineering Control Center Included entire legacy migration for Siemens NX CAD data Satisfied business/engineering and IT departments

15 Product Data Assimilation BILT Demo Improve customer experience with your product Extend the relationship beyond point of sale Capture usage insights and empower after market services à IOT for the unconnected

16 Operate at the Speed of Innovation Integrate people, process & technology Deliver Results Project Execution Orchestrate Your Business Portfolio Products Resources Portfolio & Resource Optimization Capture Ideas Innovation Management increase profit from new products

17 Integrate People, Process & Technology Connected Projects Customer Story One central portfolio and project management solution for 13,000 users, including 1,100 project and resource managers, across 24 sites and various business units around the world 30% lower research and development costs

18 Integrate People, Process & Technology Connected Projects Customer Story With 7,000 to 13,000 live product development projects at any given time, Nestle relies on SAP to manage a portfolio of projects that could reach 60,000 projects over the course of a year.

19 Integrate People, Process & Technology Innovation Management Leverage your collective wisdom to identify new products Mature the right ideas through a structured development process Use native integration to accelerate new product development

20 Roadmap for Success Market Trends Success Strategies Business Value Individualization Flexible Configuration Market Expansion Speed of Innovation Integrate People, Process & Technology Profit from New Products Smarter Products Product Data Assimilation greater innovation Product Performance

21 Source: Adapted from Software gibt den Takt vor, C.Kühnl in Mechatronic & Fertigung, 2010 SAP Connected Products Future Direction Systems Engineering Systems Engineering is required to manage the complexity of products in an industry 4.0 environment. Mechanics SW Electronic s Electronics Software Mobile Comms Services System Thinking Project Networks Engineering & Project Collaboration is becoming a viable cloud scenario in the industry. Simplification PLM Simplification along with S/4 HANA Secure path to the future SAP Suite SAP HANA SAP FIORI Mechanics REAL- TIME & SIMPLI- FIED Product Network We want to offer the best integration across the internal and external enterprise landscape. Part 1 2 V1 V2 A 1 2 Engineering E-BOM Synchronize MB OM Manufacturing Routing Modularization Variant configuration is the key enabler in Engineering and beyond to manage lot size 1 along the process. Secure Investment Secure the investment of our current customers by continuously improving and enhancing the solution. Future Direction

22 Intelligent Connected Product Lifecycle Creation and delivery of connected products (incl. hardware and software) Continuous improvement of products and technical/maintenance information Feedback information from manufacturing and use to product development Information flow back to manufacturer (remote data analysis, remote diagnostics, ) Systems Systems Engineering Things Products Planning Engineering Logistics Manufacturing Sales Embedded Software Product Lifecycle Management product creation Assets Internet of Things Product in use product operation

23 SAP PLM: Customer Co-Innovation Areas Customer Connection Document Management Customer Engagement Inititiatives Product Structure Synchronization Portfolio and Project Management Product Structure Management Project System Engineering Record

24 SAP S/4HANA, the next generation business suite Internet of Things Business networks SAP Fiori UX role-based user experience for all devices SAP S/4HANA applications and extensions instant insight-driven applications for all lines of business and industries SAP HANA platform in-memory platform for all data People Devices Social networks On-premise edition Cloud edition Big Data Native integration for hybrid scenarios Ariba Concur Fieldglass hybris Software SuccessFactors

25 SAP S/4HANA Functional scope Extensions SAP S/4HANA On-Premise Edition SAP S/4HANA Cloud Edition SAP HANA Cloud Platform Full ERP scope Full SAP S/4HANA Finance Full SAP S/4HANA Logistics Integrates with SuccessFactors Employee Central, Fieldglass, hybris for Marketing, SAP JAM, Concur and Ariba network Industry roadmap CRM, SRM, SCM each co-deployed w/ ERP Key scenarios Embedded ERP scenarios* (Business All in One scope) Integrates with SuccessFactors Employee Central, Fieldglass, hybris for Marketing, SAP JAM, Concur and Ariba network Industry roadmap Complementing in-app extensibility Customer extensions Partner extensions *Note: HCM default = SuccessFactors Employee Central This is the current state of planning and may be changed by SAP at any time.

26 LoB R&D/Engineering road map for SAP S/4HANA Enablement of basic SAP PLM, project system processes with SAP Fiori Launchpad via Web Dynpro application SAP Fiori app for project system: Release Billing Proposals Attachment services Provide native SAP HANA search models for PLM (no replication, no TREX) SAP Mobile Documents integration for document management system (DMS) and SAP Portfolio and Project Management (SAP PPM) SAP Fiori app for project system: Release Billing Proposals Release SAP PPM for SAP S/4HANA Release SAP PLM for SAP S/4HANA including SAP PLM 7 Web user interface (UI) Enablement of selected PS scope and apps BOM simplification (SAP Fiori) Integrated BOM and routing (SAP Fiori) Simplified engineering process management/ engineering record Simplified classification (SAP Fiori) Simplified document management (SAP Fiori) Simplified variant configuration: SAP Fiori UX and SAP HANA-based optimization Target-/project-driven trials and recipes Enhanced recipe analytics (SAP Fiori) Simplified SAP PPM including SAP Fiori roles for program/ project managers, team members, project accounting Integration to project and product network SAP Engineering Control Center integration (CAD) Embedded software and systems engineering handling Solution today Planned innovations Future direction Extended scope (PS networks, SAP PLM 7 Web UI) DISCLAIMER: This map represents SAP s current plan, but subject to change without any prior notification. Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines

27 SAP Value Realized Improved Value Increased innovation time Faster time to value Value to the Enterprise Accelerated new product introduction capabilities from a common yet tailored complex product description Transparency and access to data/information throughout the product lifecycle journey Value to the Engineer Less time spent on coordination with other departments More time spent on innovation Time Innovating

28 thank you Johan Malmström S/4HANA Busines Architect SAP Nordic

29 2015 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 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 forwardlooking 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 SAP SE. All rights reserved. 29

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