Digital Transformation from Vision to Reality SAP Forum Korea September 2015 Dr. Kerstin Geiger SVP Industry Value Engineering SAP APJ
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1 Digital Transformation from Vision to Reality SAP Forum Korea September 2015 Dr. Kerstin Geiger SVP Industry Value Engineering SAP APJ
2 Shrinking Planet Evolution of Population Connected Planet Evolution of Business Models Shrinking Ecological Renewal Aging Experts Smart Products & Machines From Products to Performance Raw Material Scarcity Digital Natives Hyper Connection Disruptive regulatory Environmental Expectation Demanding Customers Data Explosion environments Social Revolution ME -Economy
3 Omnicommerce Business network The Digital Economy Becomes Reality 78% Of business leaders said that achieving digital transformation will become critical to their organizations within the next two years.* Deliver exceptional experiences to your customers across every channel of interaction The digital value chain Resources Manage materials, assets, cash, and other resources better Enable frictionless commerce by managing suppliers better 93% Of employees in companies where CEOs have shared their vision for digital transformation feel that it is the right thing for the organization.* Customers People Enable the workforce of the future employees and contingent labor Internet of Things Social Other unstructured/ structured data All lines of business running in real time on a digital business platform The digital value chain Suppliers *MIT Digital Change Survey, SAP SE or an SAP affiliate company. All rights reserved. Internal 3
4 Customer Engagement Bring customers into focus to improve their individual experience Consistent customer interaction is key Social Marketing and Social Networks have massive influence buying behavior Highly customized products evolve to solutions Target a segment of one with context-based advertising and on-the-fly offers Weisbeerger real time beverage Asian Paint home solutions 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 4
5 Product Development & Production Industry 4.0 Connected and customized production with an E2E-integration Batch size of one for increased customer order flexibility Products become smart (Digital Product Memory) Industry 4.0 enabled products and solutions Customer insight and demand is key to target zero inventory and zero waste Collaborative Solution Development with Customer experience in focus Harley Davidson Connected Manufacturing Kaeser Kompressoren Predictive Maintenance 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 5
6 Business Networks & Supply Chain Significant part of business activity is shifting to the business networks Up-to-date visibility and prediction of demand Zero latency supply chains Ensure and track quality and freshness Optimize logistics to reduce cost Automize inter-enterprise commerce processes External Workforce Efficiency TechMahindra: From Farm to Fork Port of Hamburg - Connected Logistics 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 6
7 Workforce Engagement Inspired and engaged employees as fluid and scalable workforce Talent Recruitment and Development Life-long learning Online and social media listening External Workforce Efficiency Total visibility in travel spend TransAlta - SuccessFactors Siemens - Fieldglass 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 7
8 Transforming Business Models Under Armor Expanding beyond traditional industry boundaries Customers seak for experience not ownership New customer experience drives new business model Transforming from an product/asset to a service/outcome-based organization Re-desing business processes to support output based monetization End-to-end Solutions Build communities of customers NESPRESSO ultimate coffee experience Under Armour connected fitness 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 8
9 DIGITAL BUSINESS FRAMEWORK 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 9
10 SAP is Delivering Simplicity to Your Business Processes Reimagined Business Models Simplicity to connect to people, devices, business networks Reimagined Business Processes Simplicity to quickly create, run, manage and modify processes Reimagined Business Decisions Simplicity to get any insight on any data from anywhere S/4 HANA No more complex collaboration all business connected No more batch all processes in real time Decisions on the fly, Predicted outcomes 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 10
11 From Vision to Reality SAP s Support Capabilities to Build Innovative Business Solutions Vision Setting / Big Idea Workshop Start Here Process Benchmarking and Capability Mapping Initiative Prioritization Intuitive Roadmap Value Prototype Value Case & Cost Model 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 11
12 Tell me and I forget. Teach me and I remember. Involve me and I learn Benjamin Franklin 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 12
13 SAP COMMITTED TO INNOVATION GLOBAL PRESENCE & RELEVANCE INDUSTRY & LOB FOCUS DIGITAL ECONOMY READY INNOVATION LEADER 75k Employees representing 120 nationalities 295K customers Operating in 191 countries Solutions for 25 Industries and 11 LOBs 98% of top valued brands are our customers 74% of world s transactions managed on SAP 80M business cloud users 1.9M connected businesses $800B+ in B2B commerce 97%+ of mobile devices connected with SAP messaging 2011 SAP HANA launched 2012 SAP Cloud launched 2014 SAP Business Networks largest marketplace in the world 2015 SAP HANA Cloud Platform 2015: SAP S/4 HANA: Most Modern ERP System 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 13
14 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 or an SAP affiliate company. All rights reserved. Internal 14
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