Design Your Strategy for Digital Transformation with SAP S/4HANA. Allen Li, SAP Greater China July 25, 2016

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1 Design Your Strategy for Digital Transformation with SAP S/4HANA Allen Li, SAP Greater China July 25, 2016

2 Why Digital transformation? Adapt or die Hyperconnectivity Mobile In-memory computing Internet of Things Digital technologies are here to stay. Machine learning BANKING / INSURANCE Social MILLS AND MINING O&G CHEMICALS EC&O UTILITIES Big Data Cloud LIFE SCIENCES / HEALTHCARE SERVICES / TRANSPORTATION CONSUMER GOODS / AFS PUBLIC SECTOR AUTO IM&C A&D HIGHER EDUCATION RETAIL / WHOLESALE TELCO MEDIA HIGH TECH SPORTS AND ENTERTAINMENT DEFENSE AND SECURITY HIGH WINDS SEVERE STORM HURRICANE 2016 SAP SE or an SAP affiliate company. All rights reserved. 2

3 Complexity is an Obstacle to Digitization Complexity is a barrier to simplification, innovation, and the transition to digital $50 billion Incremental revenue available through simplification in the United States, United Kingdom, and Germany combined. Source: S+G Global Brand Simplicity Index % Of executives surveyed believe simplification is important for their organization and 88% admit IT investment is important to achieve simplification Source: SAP benchmarking 36 Enterprise apps per billion US dollars in revenue for the average company. This is driving most of the technical complexity. Source: SAP benchmarking 2016 SAP SE or an SAP affiliate company. All rights reserved. 3

4 Innovator s dilemma: How to take measured risk and build the future now Digital Capabilities Design Thinking Cross Functional Big Data Platform Data Scientist & UX expert Data Quality Real-time Business Process Platform Embrace Cloud Re-imagine Pilot, Standardize, Scale Value Creation Focus New Cross Functions Collaboration New Digital Territories (R&D, Marketing, Machine, ) Change Management Budget // Risk Taking // Lead by Example 2016 SAP SE or an SAP affiliate company. All rights reserved. 4

5 Digital Business is a Paradigm Shift It is about doing things differently and re-inventing your business RE-IMAGINE Business Models New ways to reach customers & prospects Outcome based business Platform business Enter new industries & markets RE-IMAGINE Business Processes Collapse cycle times Accelerate innovation cycles Intelligent processes Lean processes B2B collaboration RE-IMAGINE Work Consumer grade user experience Self services Real-time collaboration People-Machine Collaboration Cognitive world & AI 2016 SAP SE or an SAP affiliate company. All rights reserved. 5

6 SAP Digital Framework End 2 End solution for digital innovation Business Networks Customer Experience Digital Business strategy needs to take into accounts 5 pillars of digitization: - Customer Experience - Core Business Processes Digital Core - Supplier Collaboration - Workforce Engagement - Machine Data and Big Data Workforce Engagement SAP HANA Platform Security Internet of Things and Big Data SAP HANA Cloud Platform This simple framework is helping many companies develop a pragmatic approach to developing a digital strategy SAP SE or an SAP affiliate company. All rights reserved. 6

7 Digital Core Step change in value creation and business simplification Digital economy Digital core Digital transformation Internet of Things Big Data Empowered users Instant insight I Contextual information I Personalized experience Segmentof 1 Business networks Devices Enriched processes Scalability I Real time I Prediction I Simulation Live data Granular I Responsive I Accurate Lot size of 1 At scale Social networks SAP S/4HANA SAP S/4HANA Cloud Live People 2016 SAP SE or an SAP affiliate company. All rights reserved. 7

8 SAP S/4HANA Simplifications In-memory computing drives a paradigm shift in TCO and business innovation Native HANA Capabilities Work Patterns Text Mining Analytics & Prediction Simulation Decision Support Choice of Deployment Footprint Reduction SAP S/4HANA On-Premise Edition User Experience Cloud Edition 2016 SAP SE or an SAP affiliate company. All rights reserved. 8

9 Infinity Model SAP is Leading the Change with In Memory Computing Digital Boardroom Marketplace 2016 SAP SE or an SAP affiliate company. All rights reserved. 9

10 SAP S/4HANA only one year after the launch 3,200+ licensed customer scenarios 180 live customers 830+ active customer projects in all 25 industries and 67 countries Status: As of May 17, SAP SE or an SAP affiliate company. All rights reserved. 10

11 SAP Activate New Implementation Conversion Landscape Optimization SAP Best Practice Methodology Guided configuration SAP S/4HANA (On-Prem) SAP S/4HANA Cloud 2016 SAP SE or an SAP affiliate company. All rights reserved. 11

12 Digital Transformation is all About Business Value Business agility: Business model change New revenue streams New partnerships Strategy Enablement Business Benefits Step change in: Productivity increase Cycle-time reduction Asset utilization Profitable growth Real-time transparency: Risk and fraud management Finance compliance Supplier risk management Operational risk management Risk Management Employee Engagement Total workforce engagement: Rich working experience Elimination of menial work Attract and retain talent of the future 2016 SAP SE or an SAP affiliate company. All rights reserved. 12

13 Value based innovation portfolio OPTIMIZE EXTEND VALUE INNOVATE Consolidate legacy system Master data clean-up Reduce customization Eliminate non value add work Improve UX Reduce TCO Omnichannel Cloud solutions Big Data & analytics Simplified Finance Real-time extended supply chain Customer 360 o Business Model change / expansion IoT & Big Data New channels & new offerings Compete as an ecosystem (extend value chain) 2016 SAP SE or an SAP affiliate company. All rights reserved. 13

14 Innovation Options System of Innovation Design Thinking, Co-Innovation, Innovation Ecosystem 设计思维 API 管理 System of Differentiation SAP Industry Solution, BI & Predictive Analytics, Best Practice 商务智能 行业方案 System of Record SAP Applications 'basic functions 最佳实践生态体系 2016 SAP SE or an SAP affiliate company. All rights reserved. 14

15 We are ready 2016 SAP SE or an SAP affiliate company. All rights reserved. 15

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