Data-Centric Innovation How customers are building competitive advantage around data Martin Guther VP Digital Enterprise Platform, SAP

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1 Data-Centric Innovation How customers are building competitive advantage around data Martin Guther VP Digital Enterprise Platform, SAP 1

2 Consumer Expectations are Driving Digital Transformation 2

3 Digital Transformation goes far beyond digitization! 3

4 Competitive advantage Predictive Business is the key for Digital Transformation Looking BACK Sense and respond Optimization Looking FORWARD Predict and act Raw data Cleaned data Standard reports Ad hoc reports and OLAP Advanced Analytics Predictive modeling Why did it happen? What will happen? What is the best that could happen? What happened? Analytics maturity 4

5 Many industries are still struggling to find their patterns in the Digital Economy because. Changes are too dynamic Traditional Data and Information Architecture (example) RMS-based Legend Traditional RMS Big Data File System Systems are fragmented Data creates chaos Expertise networks are disconnected 2014 ERP Business Suite Custom OLTP Non-SAP ERP Machine Data Social Data EIM ETL ETL Events Operational Data Stores OLAP DW OLAP EDW Data Mart #1 Data Mart #2 Data Mart #3 Data Mart #4 Data Mart #N Planning Systems GRC Systems SAP BI Systems 3 rd party BI Systems Custom BI Systems Predictive OLAP Systems Sentiment OLAP Systems Transactional Systems Analytical Systems Data Access systems SAP AG or an SAP affiliate company. All rights reserved. 9 3 rd party ETL.we still tend to simply copy the analog world 5

6 Digital Platform Beyond MS Scientific processing Geospatial processing Time series Hierarchy processing Data mining & prediction No SQL processing Driving locality of data, integrated as deep as possible into the engine Planning extensions Graph processing Real time, in-memory Unstructured data Massive scale out OLAP and OLTP together 6

7 Adopting a Digital Platform is Key Digital Edge Predictive Real Time Digital Fabric HANA Cloud Platform Digital Core Machine Learning Data Science HANA Enterprise Computing Platform VORA Distributed Computing Framework Artificial Intelligence 7

8 SAP s Pace Layer Model for adopting a Digital Platform Digital Edge Enable Data Science and IoT with integration to Business Data Focus Characteristics Lifecycle Experimental; new idea; breakthrough innovation Loosely governed; high change pace; high risk Few months to low number of years Digital Fabric Enable analytical & predictive scenarios across all data sources Focus Characteristics Lifecycle Business differentiation; customer engagement; critical Well governed; moderate change pace; lower risk Several years Digital Core Provide the core administration and transaction engines Focus Characteristics Lifecycle Mission-critical business engine Tightly governed; low change pace, low risk Decades 8

9 Resequence to follow the money Activity Phase 1 Phase 2 Phase 3 Digital Edge Digital Fabric Digital Core HANA Platform Time 9

10 Accelerate innovation, use to fund transformation Activity Short-term Goal Medium-term Goal Long-term Goal Digital Edge Process Mining T&E Anomaly Detection P2P anomaly detection Predictive Demand Modelling Digital Fabric BI Reporting Performance (BW on HANA) Real-time KPI Visibility Forecasting & Replenishme nt Marketing Campaign Performanc e Digital Core Cam (CRM on HANA) Central Finance Fast Financial Close Fast and Frequent MRP Digital Boardroom HANA Platform Time 10

11 Improving Quality of Life in Buenos Aires 11

12 Innovating Risk Analysis in China Customs 12

13 Personalized Store Experience 13

14 Imagine the Possibilities :-) Brand Sentiment Predictive Maintenance Performance Optimization Save Lives Asset Tracking & Location Analytics Personalized Service Real-time offer management Risk Mitigation, Real-time Engage Suppliers Real-time Demand/ Supply Forecast Engage Individuals Detect Fraud 14

15 Thank You 15