The Intelligent Enterprise Innovations for Building Materials Industries

Transcription

1 The Intelligent Enterprise Innovations for Building Materials Industries Folkert Haag, SAP October, 2018

2 Agenda Trends and digitalization in the industry The Intelligent Enterprise Suite for Building Materials Selected Innovations for Building Materials Summary / key take-aways 2

3 Industry ownership of Industry Business Unit Mill Products & Mining Building Materials Industries Building Products Flooring / Roofing Doors / Windows Millwork Products Ceramics / Glass Furniture Cement & Concrete Cement Ready Mix Concrete Concrete Products Textiles Yarn Fabric Carpet & Rugs Mining & Non Ferrous Mining Copper Aluminum Primary Metals Flat Steel Long Steel Slabs, Ingots Fabricated Metals, Cable Metal Service Centers Cable Wire Forest Products Solid Wood Plywood Particle Board Pulp & Paper Brown Paper Fine Paper Hygiene Pulp Packaging Paper Packaging Flexibles Packaging Aluminum Packaging Glass Packaging 3

4 Trends and digitalization in the industry

5 Macro economic view tariffs and risk of trade war construction market expected to increase of 85% by 2030 global warming and related legislation green products / solutions and LEED buildings changing B2B buyer behaviors online market places additive manufacturing / 3D printing individualized products and solutions shortage in skilled workers robotic brick mason 5

6 Digitalization topics in building materials Business model innovation Process innovation Operational innovation Disintermediation: Omni-channel strategy including wholesale and retail (B2B2C) One-stop-shop model aka Solution Provider Pre-fabrication including construction services (enforced by 3D concrete printing) Connected manufacturing (Industry 4.0): Big data, simulation, predictive models Connected business partners: collaboration, building information modelling (5D BIM), connected equipment Stakeholder & influencer analysis and loyalty Connected logistics: connected vehicles, connected construction, connected silos and yards Real-time analytics at the finger tip with better decision support: stock levels, spend and margin analysis, machine learning etc. Customer focus and sales efficiency through cloud and mobile solutions: mobile apps for in-store sales & distributors: customer 360 Drones, visual aided work and job instruction for safety and efficiency in the quarry and at the construction site 7

7 The Intelligent Enterprise Suite for Building Materials

8 SAP Strategy: Deliver the Intelligent Enterprise Framework Manufacturing & Supply Chain Digital Core People Engagement The INTELLIGENT Customer Experience Network & Spend Management ENTERPRISE features Intelligent Suite 1 Intelligent Suite 3 KEY COMPONENTS: Intelligent Systems AI/ML IoT Analytics 2 Intelligent Technologies Digital Platform 3 Digital Platform Data Management Cloud Platform 9

9 Innovations driving value for the Building Products Industry New business scenarios Strategic priorities: Smart products Smart home integration Engineered commercial solutions Configure, price, quote BIM-based processes Consumption based billing Geo Track and trace Connected fleet Digital construction logistics Predictive quality Predictive maintenance Energy management Connected manufacturing Omnichannel incl. social ML-supported self-service Drone inspections Predictive warranty Customer centricity Innovative & smart products R&D Sales & Marketing Supply Chain Manufacturing Aftermarket Service Smart factory Procurement Finance Human Resources Digital core Digital logistics Prefabrication & digital construction 10

10 Innovations driving value for the Cement Industry New business scenarios Strategic priorities: Customer centricity Quality/demand driven quarry planning (life of mine planning) AR/VR apps Drone stockpile survey Mix optimization Predictive maintenance Predictive quality Predictive maintenance People safety (wearables) Energy Management Yard optimization Digital construction logistics Connected silos/goods Dynamic/flexible pricing POS/retail integration Customer centricity Smart factory Quarry Development Quarry Extraction Cement Plant Operations Transportation Sales and Service Procurement Finance Human resources Digital logistics Digital core Prefabrication & digital construction 11

11 Selected Innovations for Building Materials

12 Customer Centricity - Virtual showroom - Building object management

13 FunderMax Challenges Exterior Branch - Virtual Showroom Real life decor samples collection Lots of objects realized with FunderMax products now App that combines features and adds value Digital First vision 14

14 Digital Transformation: Progress AG (Precasts, Wall and Ceiling Systems) Sales Collaboration, Building Object Management, Mobile Geo-based building object management Reflect complex relationship between architects, partners, construction companies and final owners Mobile access to customer and building object data Partner solution on top of SAP Cloud for Sales 15

15 Innovative products - Smart tools

16 Hilti Connect 17

17 Smart factory - Predictive quality

18 Predictive Quality in Cement and Concrete Production 2 PoCs done by a partner customer under NDA Predictive Quality in Cement Problem: Quality depends on complex processes and influences. Partly large gaps in data. E.g. only 11 measurements/day, however, 20 parameters in various combinations influence the quality Solution: Optimization of self-learning Resource Intelligence Discovery procedure Result: Quality Prediction > 98% accuracy Quality Control > 99% hit rate Predictive Quality in Concrete Problem: input of energy and materials various for same output; difficult to operate with efficient use of raw materials and energy Solution: Self-learning discovery of complex data patterns; Predictive Recommendation System for operators Result: Less energy usage with same quality and volume 19

19 Digital logistics - Connected silos

20 SAP Connected Silo PoC for cement done Obtaining real-time product insight in a connected world A cloud-based IoT solution, designed to maximize the value of products, including raw materials, semi-finished or finished products Insight into Inventory Monitor Inventory, Forecast Consumption Product Replenishment Trigger Replenishment, Manage Inventory Consumer Interactions Product Utilization, Marketing Effectiveness, Product Consumption Product State and Location Storage Conditions, Product Movement 21

21 Prefabrication & digital construction - Intelligent construction supply with BIM

22 Intelligent Construction Supply Network Enable integrated, collaborative business processes across companies for all stakeholders Sales Order & Dispatch Realtime Logistics Fulfillment Highlights Product Information BIM enabled Project(Schedule) Collaboration Connected Manufacturing BIM-enable construction supply from end2end (e.g. BIM 5D, digital twin from design to build) Next Generation Customer Experience through Business Networks and Realtime Collaboration Smart Contracts Predictive Routing Predictive ETA epod realtime Payment New technologies like blockchain for efficient processes in finance and procurement B2B, B2B2C etendering Integrated Planning & Optimization Realtime Collaboration onsite Machine learning and AI for real-time logistics and production Integrated Supply Optimization from Quarry to Ready-Mix 23

23 Summary / key take-aways

24 Building materials companies embrace digital technology to: Delight end consumers and customer Optimize the network Gain efficiency Open new business models 25

25 Important Information Sources White Papers Video, Podcast SAP Transformation Navigator & Tools SAP Industry Vision incl. BIM (building information modelling), concrete cloud and smart contracts Strategic Positioning Paper The Industry Story Self-Service Transformation Navigator Digital Transformation in Building Products S/4HANA in Building Products Industry 4.0 SAP Point of View TED talk for Building Products S.M.A.C podcast Building Products SAP Transformation Navigator SAP Simplification List 1709 SAP Best Practices Explorer Next Generation Business Processes for Building Materials 26

26 Thank you. Contact information: Folkert Haag Global Lead for Building Materials IBU Mill Products and Mining SAP SE T +49 (6227) M +49 (151) E folkert.haag@sap.com

27 Follow us 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. The information contained herein may be changed without prior notice. 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 or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP 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 platforms, 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, and they should not be relied upon in making purchasing decisions. 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. All other product and service names mentioned are the trademarks of their respective companies. See for additional trademark information and notices.