Live Engineering How SAP S/4HANA supports the Digitization of LoB R&D

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1 Live Engineering How SAP S/4HANA supports the Digitization of LoB R&D Customer Johann Dornbach, SAP February 8, 2016

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 forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions SAP SE or an SAP affiliate company. All rights reserved. Customer 2

3 About SAP Road Maps SAP road maps cover innovations that focus on business solutions and processes. They span products that are relevant for customer lines of business in their industries and explain how our innovations can add value to your business. In SAP road maps, you can learn about our innovations along three different timelines: 1. Recent innovations for our solutions have been launched in the past weeks or months and can already be purchased. 2. Planned innovations for our solutions are expected to be launched in the short term or midterm. 3. Future direction provides a long-term perspective on high-level development plans on innovations for our solutions inspired by your requirements SAP SE or an SAP affiliate company. All rights reserved. Customer 3

4 Chart about ho many companies have a digitization strategy If you went to bed last night as an industrial company, you re going to wake up this morning as a software and analytics company. Jeff Immelt, CEO of GE, Minds+Machines Summit 2014

5 Companies will sell Services rather than Products in the Future Products Life Cycle Services 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 6

6 The Challenge: Isolated IoT Sensor Communications and Analysis Design Customers Markets Sensor Feedback Loop Manufacturing Operations Social Idea Management Research & Development Manufacturing Service & Field Operations Internal Technology Sensor Feedback Loop Service Operations 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 7

7 Let s extend our understanding of Product Lifecycle Management Product: Mechanical Electrical Software Services delivered through the product Economic performance Lifecycle: Until decomissioning at customer site Closed Loop True PLM Management: Jointly with customers Partners even competitors 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 8

8 Companies need to maintain a detailed understanding about their products throughout the entire life cycle: Digital Twin for Business The digital world As designed, Portfolio and Costs As Configured, Cost and Plan As built. Cost to build As maintained. In Situ Updates Change in the Field The physical world 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 9

9 True Product Lifecycle Management Profitability Cost Cost Stress Simulations Issues Geometries Quality Fingerprint Performance Designs Production Data Ramp Up / Start Up Output Ideas The digital world Engineering Production Installation Operation Decommission The physical world As Designed As Built As Delivered As Maintained 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 10

10 True PLM builds on the Digitalization of Manufacturing Companies and their Strategic Priorities.

11 Digitalization for Manufacturing Companies Value creation through deep process and data integration Smart Products New Business Scenarios R&D Procurement Usage based Billing Configure, Price, Quote Sales & Marketing Track & Trace Connected Logistics Supply Chain Finance Digital Core Predictive Quality Energy Management Connected Manufacturing Manufacturing Augmented Reality Apps Remote Service Management Predictive Maintenance Aftermarket Service Human Resources Strategic Priorities: 1. Customer centricity Rethinking the whole business from the end customer s perspective. 2. Serving the Segment of One Configurability Adaptability Personalization 3. Digital smart products Intelligent Self-aware 4. Digital supply chain & smart factory Flexible reaction to changes in demand, supply and resources 5. Servitization & new business models Aftersales Service Value add services Usage based charging 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 12

12 Let s look at these strategic priorities in more detail.

13 Customer Centricity Rethinking the whole business from the end customer s perspective 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 14

14 Customer Centricity Needs and implications for R&D Needs Customer Co- Innovation Product innovations resulting from actual equipment usage and incident reports Structured requirements collection based on customer and design partner interactions SAP Capabilities Project and Design Network (Planned) Asset Intelligence Network Requirements Management Variant Configuration integrated along the value chain from Engineering through Manufacturing to Sales Business Benefits 10 to 20% reduction of manual rework in manufacturing 5 to 20% reduction of efforts to define and release individualized and market-specific product variants* Customer Examples 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 15

15 Serving the Segment Of One Configurability, Adaptability and Personalization 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 16

16 Serving the Segment Of One Needs and implications for R&D Needs Modularized product concepts and well structured product families Platform models cross product families Selected ETO capabilities during sales configuration process SAP Capabilities Engineering BoM Manufacturing BoM Variant Configuration integrated along the value chain from Engineering through Manufacturing to Sales Authoring Tool Integrations (CAD, ECAD, etc.) Visual Enterprise Business Benefits 10 to 30% faster design process for smart product offerings 10 to 40% Improvement in accuracy of engineering changes Customer Examples 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 17

17 Digital Smart Products Intelligent and self-aware 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 18

18 Digital Smart Products Needs and implications for R&D Needs Systems engineering approach (incl. mechanical, software, electronic, etc.) Embedded technologies foundation for equipment networks SAP Capabilities Systems Engineering (Planned) Requirements Management Engineering Control Center Authoring Tool integrations Engineering BoM Change Management Asset Intelligence Network Business Benefits 5 to 14% faster time to market for new products 10 to 30% lower R&D costs Customer Examples 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 19

19 Digital Supply Chain & Smart Factory Flexible reaction to changes in demand, supply and resources 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 20

20 Digital Supply Chain & Smart Factory Needs and implications for R&D Needs Integrated manufacturing engineering with ebom and mbom management Digitally visualized manufacturing processes based on harmonized product data SAP Capabilities Visual Manufacturing Planner Product Structure Synchronization Visual Enterprise integrated along the value chain from Engineering through Manufacturing to Service Business Benefits 10 to 55% faster time to market Customer Examples 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 21

21 Servitization & New Business Models Value add services and outcome based charging 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 22

22 Servitization & New Business Models Needs and implications for R&D Needs Life-Cycle cost calculation capabilities Software solutions calculating actual equipment usage Data platforms offering digital services Equipment information sharing along the value chain SAP Capabilities Product Lifecycle Costing Asset Intelligence Network Business Benefits New products revenue: % R&D cost: % Prod. meet. rev. targets: % Customer Examples 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 23

23 How SAP helps the Head of R&D Top 5 strategic initiatives of Manufacturing companies Examples Strategic Priorities Required Capabilities S/4 HANA R&D 1. Customer centricity Rethinking the whole business from the end customer s perspective. 2. Serving the Segment of One Configurability Adaptability Personalization 3. Digital smart products Intelligent Self-aware 4. Digital supply chain & smart factory Flexible reaction to changes in demand, supply and resources 5. Servitization & new business models Aftersales Service Value add services Usage based charging Customer Co-Innovation Product innovations resulting from actual equipment usage and incident reports Structured requirements collection based on customer and design partner interactions Modularized product concepts and well structured product families Platform models cross product families Selected ETO capabilities during sales configuration process Systems engineering approach (incl. mechanical, software, electronic, etc.) Embedded technologies foundation for equipment networks Integrated manufacturing engineering with ebom and mbom management Digitally visualized manufacturing processes based on harmonized product data Software solutions calculating actual equipment usage Data platforms offering digital services Equipment information sharing along the value chain Suite Products Enterprise Management Engineering Control Center Product Lifecycle Costing Constrain Management Portfolio and Project Management Commercial Project Mgmt. Innovation Management Cloud for Product Stewardship Enterprise Portfolio and Project Mgmt. Commercial Project Mgmt. Compliant Product Lifecycle Mgmt. Product Development and Project Control Production Engineering Variant Configuration Embedded SW Mangement 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 24

24 SAP Point of View

25 Is your business ready for the Digital Transformation? Disconnected Value Chains and Multiple Solution Models 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 27

26 SAP Point of View From Sequential Steps to Collaborative Networks 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 28

27 SAP Point of View Seamless Collaboration on One Common Solution Model As-built/As-maintained BOM Engineering BOM Manufacturing BOM Sales Configurator Working together seamlessly. Purchased parts list 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 29

28 Connecting Things with People and Processes LoB Digital Supply Chain (Business Process View) SAP Leonardo ( Things View) Digital Business Planning Digital Response & Supply Digital Logistics Digital Product Innovation Digital Manufacturing Digital Operations Industry view SAP Leonardo Portfolio Connected Products Connected Assets Connected Fleet Connected Infrastructure Connected Markets Connected People Line of Business view Technology view 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 30

29 SAP Leonardo Innovation Portfolio SAP Leonardo Bridge Connected Products Connected Assets Connected Fleet Connected Infrastructure Connected Markets Connected People Product Insights Fixed Asset Insights Mobile Asset Insights Building Insights Market Insights Work Goods & Equipment Manufacturing Execution Logistics Safety Construction Rural Areas Health & Sports Supply Networks Manufacturing Networks Logistics Networks Energy Grids Urban Areas Homes SAP Leonardo Edge SAP Leonardo Foundation SAP HANA Cloud Platform / SAP HANA platform 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 32

30 Live Engineering - Powered by SAP Leonardo Customers Markets Connected Products Sensor Feedback Loop Social Idea Management Research & Development Design Manufacturing Service & Field Operations Internal Technology SAP Leonardo Edge SAP Leonardo Foundation SAP HANA Cloud Platform / SAP HANA platform 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 33

31 Planned Highlights for R&D in S/4HANA

32 Document Management in S/4HANA Solution Overview Create / Search Document Info record Maintain Status Link DIR to Other Objects Attach/ Modify files Collaborate Documents via Document Center Attach URLs Highlights: Collaborate and Share Document Info record Content via Document Center and DMS integration. Search and Maintain Document Info records with new FIORI app for Maintain Document. Simple interface to handle attachments supporting GOS/DIR and URL as attachments. Integration into external Content Management Systems like OpenText via open Interface standards (CMIS) Planned Lab Preview 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 35

33 SAP s Content Management Direction for the Cloud Target Architecture Vision Highlights Leverage Consistency across cloud applications with Open Standard CMIS (Content Management Interoperability Services ) to integrate with Content Management Systems Open Strategy & Interface to give the Customer the choice for a Content Management Solution ( SAP Standard, OpenText, other Partner ) Planned Lab Preview 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 36

34 Simplified BOM Integration Scenario Find Bill of Material Use change numbers to create changed BOM instances Create New Alternatives Edit BOMs and save drafts. Discard or save changes later. Use attachment services to attach relevant documents Highlights: Efficient and customizable bill of material search via filters and key fields. BOM draft feature to enable tentative decisions and changes. Changes can be either saved or discarded. Provision of a change timeline which allows navigation to different change instances from application itself. Functionality to create and assign change number from the overview page. The application also incorporates attachment services. The attachment service is a reusable UI component that allows the users to attach documents and files to any business object. Planned Lab Preview 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 37

35 Change Record Applications Solution overview Highlights: Efficient collaboration via connected change processes across departments. Controlled change risks via joint decision based on workflow. Single source of truth, centralized change data of scopes, processes, and task owners. Flexibility to support all kinds of changes. Quickly pinpointing change impacts. Planned Lab Preview 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 38

36 Configure Price Quote & S/4HANA Variant Configuration Integrated CPQ and S/4HANA for the Entire Configuration Life Cycle Highlights: S/4HANA Digital Core Seamless integration: One Configuration Model Configure, Price, Quote (CPQ) Product Lifecycle Management Mobile-first, 3D-first User Experience Micro-service-based cloud engine for flexible processes Sales can flexibly enrich options and values Seamless integration: One Configuration Model Focus on S/4HANA-related roles Fully integrated into all VC-related business processes Leverages SAP HANA capabilities Sales Manufacturing Service Engineering Supply Chain Asset Mgt. Planned Lab Preview 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 39

37 Connected Products Storyline Lab Preview Integrate software as part of the Smart Connected Product Seamless systems engineering Ensure compatibility between the software and hardware Closing the process gaps between engineering and the digital twins Share, submit and collect engineering documents Execute task structure across company boundaries Systems Engineer Cockpit Collaborative Engineering and Document Collaboration Embedded SW Collaborative 3D Visual Design Review Requirements Management Simple Task/Worklist Management Functional Structure Management Change Management Integration Where Used Analysis Compatibility Management Test Validation IOT Analytics Embedded Systems Project and Design Collaboration Manufacturing Cloud Services ECC SAP NetWeaver HCP Services SAP HANA Cloud Platform SAP HANA IoT/AIN SAP Ariba Future 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 40

38 Future

39 The world of Bi-Modal IT Business Intelligence Steer Businesses Deliver insights to drive strategic decisions Run Businesses Hyper-automate business processes Mode 1 Mode 2 Data Foundation Differentiate Businesses Intelligently connect people, things, and businesses Embrace Data Orchestrate data of any volume, velocity, and variety 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 49

40 SAP Connected Products The Digital Product Innovation Platform Project Collaboration Network SAP HANA CLOUD PLATFORM Design Collaboration Network SAP HANA CLOUD PLATFORM Partner Digital Core S/4HANA Projects & Portfolios Supplier Formulation Engineering Design Digital Manufacturing Variant Configuration Asset Intelligence Network Manufacturer, Aftermarket Customer Industry 4.0 & Internet of Things SAP HANA PLATFORM Customer Engagement and Commerce Customer Future 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 50

41 Q&A

42 Thank you Contact information: Johann Dornbach Vice President, Configure Products & Innovation S/4HANA Idea LoB Research & Development SAP SE Dietmar-Hopp-Allee 16, Walldorf, Germany T , M E johann.dornbach@sap.com

43 2016 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 or an SAP affiliate company. All rights reserved. Customer 57

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