Reimagine Business with the Next-Generation Business Suite

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1 Reimagine Business with the Next-Generation Business Suite

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. 2

3 Agenda The Digital Economy SAP S/4HANA: Introducing the digital core SAP S/4HANA Enterprise Management solution SAP S/4HANA Lines of Business solutions and use cases Industry use cases 2015 SAP SE or an SAP affiliate company. All rights reserved. 3

5 We ve come a long way together Integration 40+ years of innovation across industries Standardization 291,000 customers Globalization 74% of the world s transaction revenue touches an SAP software system Mainframe Client/server World Wide Web Service-oriented architecture In-memory computing SAP R/1 SAP R/2 SAP R/3 mysap SAP ERP SAP HANA 2015 SAP SE or an SAP affiliate company. All rights reserved. 5

Today, five trends are dramatically reshaping the economy Hyperconnectivity Every consumer and machine is connected,

Smarter world Sensors, robotics, 3D printing, and artificial intelligence are the new normal, driving an

Networking and in-memory computing allow for the creation of new business opportunities previously unimaginable.

Project timelines are dramatically shortened, and customer relationships are becoming increasingly direct.

6 Today, five trends are dramatically reshaping the economy Hyperconnectivity Every consumer and machine is connected, disrupting established business channels, processes, and relationships. Smarter world Sensors, robotics, 3D printing, and artificial intelligence are the new normal, driving an outcome-based economy. Supercomputing The limits of 20th century computing power are gone. Networking and in-memory computing allow for the creation of new business opportunities previously unimaginable. Cloud computing Technology infrastructure is now rented to eliminate barriers to entry. Project timelines are dramatically shortened, and customer relationships are becoming increasingly direct. Cyber security Bad actors have expansive disruptive capabilities. Trust remains the ultimate currency, giving security-focused businesses a significant advantage in brand reputation SAP SE or an SAP affiliate company. All rights reserved. 6

7 Living in a digital economy Last two years Last two years 90% Of the world s data has been generated 1 40% Growth in adoption of business networks 2 End of 2020 By 2020 In billion Things will be connected 3 9 billion Mobile users in the world 4 51% Of workloads processed in the cloud 5 1 ScienceDaily, May 22, Technology Adoption Report on Business Networks, Ardent Partners, Internet of Things (IoT) 2013 to 2020 Market Forecast: Billions of Things, Trillions of Dollars, IDC, Statista, Cisco Global Cloud Index: Forecast and Methodology for , Cisco Systems Inc., November 11, SAP SE or an SAP affiliate company. All rights reserved. 7

... offering infinite opportunities to first movers 26%+ 9%+ Revenue

profitability In the next 10 years, 40% of the S&P 500 will no longer exist

Advantage: how digital leaders outperform their peers in every industry :

8 ... offering infinite opportunities to first movers 26%+ 9%+ Revenue creation Market valuation Early adopters are winning 12%+ Impact on profitability In the next 10 years, 40% of the S&P 500 will no longer exist if they do not keep up with these technology trends* * The Digital Advantage: how digital leaders outperform their peers in every industry : CapGemini and MIT Sloan, 2013 (link) 2015 SAP SE or an SAP affiliate company. All rights reserved. 8

Business leaders need to digitally transform across five key pillars Assets and Internet of Things Customer Experience Omnichannel Core Business Processes

personally with one-to-one marketing Move away from lengthy and time-consuming batch processes Attract and retain talent by clearly communicating business impact

visibility into whereabouts of in-transit materials to drive new scheduling efficiencies Personalize products and offerings by slicing and dicing customer data

chain Connect my enterprise to people, devices, business and social networks Enhance decision making with a cross-device, personalized user experience Gain full

cycles Orchestrate profitability with real-time sensing of demandand-supply data How can I better utilize my products and assets?

9 Business leaders need to digitally transform across five key pillars Assets and Internet of Things Customer Experience Omnichannel Core Business Processes Workforce Engagement Suppler Collaboration and Business Networks Analyze sensor data from products, and deliver outcome-based experiences Engage customers more personally with one-to-one marketing Move away from lengthy and time-consuming batch processes Attract and retain talent by clearly communicating business impact Extend business processes, and deliver new value to customers Monitor assets on the factory floor to predict failure and decrease downtime Gain instant visibility into whereabouts of in-transit materials to drive new scheduling efficiencies Personalize products and offerings by slicing and dicing customer data on the fly Predict customer behavior, and make context-relevant product recommendations React quickly to market signals happening in real-time across the value chain Connect my enterprise to people, devices, business and social networks Enhance decision making with a cross-device, personalized user experience Gain full visibility into critical human resource gaps to prevent business disruption Gain the flexibility to customize to changing customer demands in shorter planning cycles Orchestrate profitability with real-time sensing of demandand-supply data How can I better utilize my products and assets? How can I deliver an omnichannel experience? How can I digitize my core? How can I better engage my workforce? How can I increase supplier collaboration? 2015 SAP SE or an SAP affiliate company. All rights reserved. 9

But often times it s complexity that is standing in the way Complexity is hindering business growth Percentage of

executives estimating the costs of complexity 86% 67% 61% 11% Business processes and decision making have become

Believe their organization costs have increased by at least 11% Feel their organization is a top innovator in

10 But often times it s complexity that is standing in the way Complexity is hindering business growth Percentage of business executives who agree Manifestations of complexity: the costs are significant Percentage of business executives estimating the costs of complexity 86% 67% 61% 11% Business processes and decision making have become so complex that they hinder our ability to grow in a digital economy Say employee satisfaction has been harmed Believe their organization costs have increased by at least 11% Feel their organization is a top innovator in their sector * HBR, The Business Case for Managing Complexity 2015 SAP SE or an SAP affiliate company. All rights reserved. 10

SAP S/4HANA reimagines businesses for the digital economy The entire value chain is digitized, including the digital core that serves as the foundation for business

Workforce Engagement Supplier Collaboration and Business Networks The digital enterprise interconnects all aspects of the value chain to drive and anticipate business

12 SAP S/4HANA reimagines businesses for the digital economy The entire value chain is digitized, including the digital core that serves as the foundation for business innovation and optimization. Workforce Engagement Supplier Collaboration and Business Networks The digital enterprise interconnects all aspects of the value chain to drive and anticipate business outcomes in real time. The Digital Core Enterprises across industries can lead the digital transformation by completely reimagining business models, business processes, and work. Assets and Internet of Things Customer Experience Omnichannel 2015 SAP SE or an SAP affiliate company. All rights reserved. 12

... interconnecting all aspects of the value chain Workforce Engagement Recruit and onboard the best workforce, simplify their work, and ensure regulatory and compliance Manage the total workforce

business insight by capturing and analyzing real-time information on Big Data Embed device data across the value chain to create new business models Leverage an open innovation platform to quickly

business insight on one single source of live information on any device Predict and simulate to anticipate future business outcomes Supplier Collaboration Business Networks Leverage the broadest

13 ... interconnecting all aspects of the value chain Workforce Engagement Recruit and onboard the best workforce, simplify their work, and ensure regulatory and compliance Manage the total workforce lifecycle, from recruiting, onboarding, performance, compensation, and learning Enable the workforce to easily access the right information across any device Assets and Internet of Things Drive new business insight by capturing and analyzing real-time information on Big Data Embed device data across the value chain to create new business models Leverage an open innovation platform to quickly integrate, extend, and build innovative apps (on premise, in the cloud) SAP HANA Cloud Platform The Digital Core Drive digitized mission-critical business processes across all operations Get instant business insight on one single source of live information on any device Predict and simulate to anticipate future business outcomes Supplier Collaboration Business Networks Leverage the broadest business network end-to-end source-to-procure processes Manage costs and drive innovation with suppliers in all categories of spending (materials, services, labor, T&E) Drive solution adoption and purchasing compliance globally with easy to use applications and mobile apps Customer Experience Omnichannel Orchestrate business processes across marketing, commerce, sales, and service Deliver personalized experiences in context for each interaction Build a golden customer profile, with an enriched view of the customer from multiple data sources 2015 SAP SE or an SAP affiliate company. All rights reserved. 13

14 The Digital Core SAP S/4HANA Introducing the next-generation core and lines-of-business solutions for the digital economy The SAP S/4HANA lines-ofbusiness (LoB) solutions combine a modern and simplified core built on the SAP HANA platform with best-in-class LoB solutions and connection to business networks. These solutions are designed to help meet the new requirements of lines of business in the digital economy: real-time information on Big Data, personalized customer experiences, omnichannel, connected devices, people, and businesses. SAP S/4HANA FINANCE SAP S/4HANA HUMAN RESOURCES SAP S/4HANA SOURCING AND PROCUREMENT SAP S/4HANA SUPPLY CHAIN Enterprise Management SAP S/4HANA MANUFACTURING The Digital Core The LoB solutions can continue to be consumed as standalone solutions or as part of the SAP S/4HANA LoB solutions, giving more choice to customers, allowing true hybrid scenarios and incremental deployments. SAP S/4HANA MARKETING SAP S/4HANA SALES SAP S/4HANA SERVICE SAP S/4HANA ASSET MANAGEMENT SAP S/4HANA RESEARCH AND DEVELOPMENT Industries 2015 SAP SE or an SAP affiliate company. All rights reserved. 14

SAP S/4HANA and SAP HANA Cloud Platform Ariba The Digital Core Concur Fieldglass Existing

applications and extensions instant insight-driven applications for all lines of business and

edition SAP HANA platform in-memory platform for all data Cloud edition Big Data Cloud

HANA Cloud Platform Cloud Platform Technical Services Cloud Platform Business Services Cloud

15 SAP S/4HANA and SAP HANA Cloud Platform Ariba The Digital Core Concur Fieldglass Existing Cloud Applications SAP Fiori UX role-based user experience for all devices SAP S/4HANA applications and extensions instant insight-driven applications for all lines of business and industries Internet of Things New Digital Applications hybris SuccessFactors On-premise edition SAP HANA platform in-memory platform for all data Cloud edition Big Data Cloud Integration On-Premise Extensions An Agile Platform Cloud Extensions New Applications SAP HANA Cloud Platform Cloud Platform Technical Services Cloud Platform Business Services Cloud Platform Database Services SAP HANA Cloud Integration 2015 SAP SE or an SAP affiliate company. All rights reserved. 15

Digitize beyond the core, embrace the digital economy Digital economy Digital

User empowered Instant insight I Contextual information I Personalized

Segment of 1 Lot size of 1 At scale Devices Live data Granular I Responsive I

Leading-edge processes I Integrated system SAP S/4HANA value play Digital

16 Digitize beyond the core, embrace the digital economy Digital economy Digital core Digital transformation Internet of Things Big Data Business networks User empowered Instant insight I Contextual information I Personalized experience Process enriched Scalability I Real time I Prediction I Simulation Segment of 1 Lot size of 1 At scale Devices Live data Granular I Responsive I Accurate No latency Social networks People Traditional core value play Leading-edge processes I Integrated system SAP S/4HANA value play Digital transformation of business models 2015 SAP SE or an SAP affiliate company. All rights reserved. 16

19 SAP S/4HANA Enterprise Management Digitized core business processes Key Capabilities Benefits Real-time mission-critical business processes across your entire enterprise, from order to cash to procure to pay, to plan to product, as well as core functionality for finance and HR. One single source of live information Personalized user experience with instant insight on any device Faster business outcomes with reduced operational cost thanks to a simpler IT Increased competitiveness with integrated, fast, and flexible business processes Higher employee productivity with focus on value-added tasks 2015 SAP SE or an SAP affiliate company. All rights reserved. 19

21 SAP S/4HANA for Lines of Business SAP S/4HANA Finance SAP S/4HANA Human Resources SAP S/4HANA Sourcing and Procurement SAP S/4HANA Marketing SAP S/4HANA Sales SAP S/4HANA Service SAP S/4HANA Supply Chain SAP S/4HANA Manufacturing SAP S/4HANA Asset Management SAP S/4HANA Research and Development

SAP S/4HANA Enterprise Management Digitized core business processes Key Capabilities Benefits Real-time mission-critical business processes across your entire enterprise, from order to cash to

22 SAP S/4HANA Enterprise Management Digitized core business processes Key Capabilities Benefits Real-time mission-critical business processes across your entire enterprise, from order to cash to procure to pay, to plan to product, as well as core functionality for finance and HR. One single source of live information Personalized user experience with instant insight on any device Faster business outcomes with reduced operational cost thanks to a simpler IT Increased competitiveness with integrated, fast, and flexible business processes Higher employee productivity with focus on value-added tasks 2015 SAP SE or an SAP affiliate company. All rights reserved. 22

SAP S/4HANA Finance Transform Finance with Instant Insight

finance and operational data Real-time oversight into finance

Prediction, simulation, and what-if analysis for continuous

minimized errors need for reconciliation Instant insight to

Evaluation of the financial implications of strategic

23 SAP S/4HANA Finance Transform Finance with Instant Insight Key Capabilities Benefits Ensure one source of the truth for finance and operational data Real-time oversight into finance processes and finance and managerial accounting results Prediction, simulation, and what-if analysis for continuous finance and business planning Enterprise-wide consistency and minimized errors need for reconciliation Instant insight to enable timely and relevant decisions, with no lag time Evaluation of the financial implications of strategic business decisions 2015 SAP SE or an SAP affiliate company. All rights reserved. 23

SAP S/4HANA Human Resources Success Is Simply

workforce, from employees to contingent workers,

Comprehensive suite of solutions across all

learning, performance and goals, compensation,

to gain actionable insights for strategic

engagement, from ensuring everyone in the

it, to managing their careers and teams Ability

business strategies Uniting HR, business teams,

24 SAP S/4HANA Human Resources Success Is Simply Human Key Capabilities Managing your entire workforce, from employees to contingent workers, with a complete system of engagement Comprehensive suite of solutions across all talent processes: recruiting, onboarding, learning, performance and goals, compensation, succession, and development Workforce analytics to gain actionable insights for strategic workforce decisions Benefits Higher employee engagement, from ensuring everyone in the organization has what they need, when they need it, to managing their careers and teams Ability to use HR data to link HR strategies with business strategies Uniting HR, business teams, and IT for better business performance 2015 SAP SE or an SAP affiliate company. All rights reserved. 24

SAP S/4HANA Sourcing and Procurement Networked Commerce Key Capabilities Benefits Secure many to many

processes, including spend analysis, sourcing, contract management, supplier management, procurement,

capabilities : indirect and direct materials, services, contingent labor and travel and entertainment

derived from employee compliance and sustainable cost savings Effortless user experiences with

once, connect to all collaboration simplicity Faster order and invoicing cycle times with fewer errors

25 SAP S/4HANA Sourcing and Procurement Networked Commerce Key Capabilities Benefits Secure many to many networked collaboration with trading partners Consumer-grade usability and mobility Full source to pay processes, including spend analysis, sourcing, contract management, supplier management, procurement, invoice management and payables management Comprehensive solutions with deep category-specific capabilities : indirect and direct materials, services, contingent labor and travel and entertainment Support for Total Supplier Enablement including new supplier discovery / ratings Increased profitability derived from employee compliance and sustainable cost savings Effortless user experiences with unprecedented transparency into spend, enabling companies to Run Simple Reduced IT costs with connect once, connect to all collaboration simplicity Faster order and invoicing cycle times with fewer errors Ability to drive early payment discounts Improved management of supplier-based risks 2015 SAP SE or an SAP affiliate company. All rights reserved. 25

SAP S/4HANA Marketing Market to an Audience of One Key Capabilities Consolidate

insights High performance discovery and targeting tool to generate microsegments and

campaign performances Benefits Gain deeper customer insights, discover hidden trends

to deliver relevant marketing messages Make real-time adjustments to campaigns by

26 SAP S/4HANA Marketing Market to an Audience of One Key Capabilities Consolidate customer information into one enriched view, and leverage advanced analytics to gain insights High performance discovery and targeting tool to generate microsegments and group Plan and execute personalized campaigns, understand and analyze campaign performances Benefits Gain deeper customer insights, discover hidden trends and real-time customer opportunities Accurately develop target groups and segments to deliver relevant marketing messages Make real-time adjustments to campaigns by understanding marketing performances 2015 SAP SE or an SAP affiliate company. All rights reserved. 26

SAP S/4HANA Sales Sell Smarter Anytime, Anywhere Key Capabilities Manage accounts, opportunities, and other activities, and leverage advanced analytics to gain insights Easy access

device Benefits Know your customer and make each interaction relevant, meaningful, and impactful Sell and close from everywhere with real-time access to back-office information,

27 SAP S/4HANA Sales Sell Smarter Anytime, Anywhere Key Capabilities Manage accounts, opportunities, and other activities, and leverage advanced analytics to gain insights Easy access to product catalogue, inventory, and pricing to create sales quotes and fulfill sales orders in real time Mobile-first approach with access to customer and business insight on any device Benefits Know your customer and make each interaction relevant, meaningful, and impactful Sell and close from everywhere with real-time access to back-office information, simplifying the lead-to-cash process Gain business insights, discover hidden trends and real-time customer opportunities 2015 SAP SE or an SAP affiliate company. All rights reserved. 27

SAP S/4HANA Service Delivering Effortless Customer Service

communication channels without losing context Easily

issues or execute service orders Provide in-person or

Boost customer satisfaction and the quality of the customer

service operations Maximize profitability by creating and

28 SAP S/4HANA Service Delivering Effortless Customer Service Key Capabilities Seamlessly transition between communication channels without losing context Easily leverage on-premise systems of record to resolve customer issues or execute service orders Provide in-person or on-site support via robust native mobile access Benefits Boost customer satisfaction and the quality of the customer experience Increase operational efficiency by streamlining service operations Maximize profitability by creating and offering new services 2015 SAP SE or an SAP affiliate company. All rights reserved. 28

SAP S/4HANA Supply Chain Building Customer Centricity and Responsive Demand

operations planning cycles with real-time data and what-if scenarios Be

replanning, and simulation Respond efficiently real-time and adaptive freight

turns and revenues, reduced stockouts, and revenue loss Higher on-time

buffer against uncertainty Reduced warehouse and transportation spend, improved

29 SAP S/4HANA Supply Chain Building Customer Centricity and Responsive Demand Networks Key Capabilities Master uncertainty support monthly supply and operations planning cycles with real-time data and what-if scenarios Be demand-driven sense short-term demand, respond quickly with fast planning, replanning, and simulation Respond efficiently real-time and adaptive freight planning, truck visibility, and warehouse automation Benefits Higher inventory turns and revenues, reduced stockouts, and revenue loss Higher on-time delivery, reduced order lead times, using inventory more efficiently to better buffer against uncertainty Reduced warehouse and transportation spend, improved flexibility, and lower customer order cycle times 2015 SAP SE or an SAP affiliate company. All rights reserved. 29

SAP S/4HANA Manufacturing Accelerating the

Identifies and prioritizes most critical

Faster execution provides more current and

Benefits Faster reaction to demand changes

stockouts Lower inventory and safety stocks

supply, production, inventory, and demand

30 SAP S/4HANA Manufacturing Accelerating the Material Supply Chain Key Capabilities Identifies and prioritizes most critical material issues, options, and consequences Faster execution provides more current and accurate view of material situation Benefits Faster reaction to demand changes Reduction of manufacturing costs and stockouts Lower inventory and safety stocks Provides enterprise-wide visibility across supply, production, inventory, and demand 2015 SAP SE or an SAP affiliate company. All rights reserved. 30

SAP S/4HANA Asset Management Real-Time Visibility into Asset Performance Key Capabilities Simulation of maintenance

machines and sensors along with business data Proactively control risks and prevent incidents by leveraging analysis,

decisions Combined evaluation of information technology (IT) and operational technology (OT) data One common view of

31 SAP S/4HANA Asset Management Real-Time Visibility into Asset Performance Key Capabilities Simulation of maintenance strategies with respect to cost, risk, and performance Predict and prevent downtime by analyzing data generated by machines and sensors along with business data Proactively control risks and prevent incidents by leveraging analysis, simulation, and prediction techniques Benefits Real-time insight into asset performance to make timely, relevant decisions Combined evaluation of information technology (IT) and operational technology (OT) data One common view of process risks related to workers, assets, or the environment 2015 SAP SE or an SAP affiliate company. All rights reserved. 31

SAP S/4HANA Research and Development One Single Source of Live Product Information Key Capabilities Enabling a multidiscipline product definition What-if analysis and iterative design processes

32 SAP S/4HANA Research and Development One Single Source of Live Product Information Key Capabilities Enabling a multidiscipline product definition What-if analysis and iterative design processes Real-time multilevel BOM exploration Benefits Achieve transparency and real-time access to product information across disciplines and throughout the product lifecycle journey Make better design decisions using SAP HANA analytics Execute engineering changes with full knowledge of downstream costs 2015 SAP SE or an SAP affiliate company. All rights reserved. 32

33 SAP S/4HANA Finance Soft and financial close Planning and predictive finance Real-time cash management and forecasting Budget management Continuous cross-system control monitoring Scanning high volumes of data for potential fraud

34 Soft financial close anytime Use case Description: A traditional measurement of the finance organization is the speed at which a company closes its books. In benchmarking studies, the value engineering group of SAP found that the top quartile performing companies achieve the annual financial close in 26% fewer days than their peers, resulting in 61% lower general ledger and closing costs. Industry relevance: cross-industry Unique value of SAP S/4HANA Drive one common view of financial data to help ensure enterprise-wide consistency to minimize reconciliation Enable real-time processes for instant insight to make timely, relevant decisions Use prediction, simulation, and analysis to evaluate financial implications of strategic business choices Top capabilities Universal journal for both financial and controlling data On-the-fly aggregation of transactional tables Central finance to consolidate many back ends Business innovations Real-time oversight of close progress Real-time insight into financial results Continuous intramonth processes Solutions SAP S/4HANA Finance solution Quantifiable value * 400 hours cut from period-end close 86% faster real-time analytics 2.5x faster cost postings *SAP software implementation 2015 SAP SE or an SAP affiliate company. All rights reserved. 34

35 Business process view Soft financial close anytime Traditional system With SAP S/4HANA Close batches Consolidation batches Reporting on demand Initial period Close and consolidation Initial period Close and consolidation With traditional system: Close activities that don t begin until period end Multiple batch-run dependencies Batch bottlenecks that delay downstream activities High error-correction efforts Complex issues that are postponed until after close Time-pressured resolutions Delayed visibility into reporting Ad hoc User interaction Traditional Ad hoc User interaction With SAP S/4HANA Process excellence With SAP S/4HANA: Real-time system with key performance indicators (KPIs) instantly refreshed Elimination of end-of-period batch bottlenecks Continuous intercompany reconciliation Continuous financial reporting visibility Profitability analysis and line-item detail reconciliation Automation for routine tasks Full management visibility of close tasks 2015 SAP SE or an SAP affiliate company. All rights reserved. 35

36 Planning and predictive finance Use case Description: Obtain instant financial analytics across multiple dimensions of finance and operations. Employ modeling and prediction to evaluate the financial implications of strategic business options. Use planning and what-if simulations for both a backward- and a forwardlooking perspective on your business. Industry relevance: cross-industry Unique value of SAP S/4HANA Build representations of the most likely business scenarios for revenue, margin, and operational costs Exploit patterns, trends, variances, and correlations that directly drive financial business performance Anticipate cash-flow issues and take preventive action Top capabilities Rapid building of models Real-time predictions and simulations Comparison of dimensions Business innovations Real-time revenue and cost analysis Real-time liquidity forecasts Continuous planning and forecasting Solutions SAP S/4HANA Finance Quantifiable value Increased forecast accuracy Improved margin Optimized cash flow 2015 SAP SE or an SAP affiliate company. All rights reserved. 36

37 Business process view Planning and predictive finance Traditional system With SAP S/4HANA Profit center plan Cost center plan Profit center hierarchy Cost center hierarchy SAP ERP reporting SAP Business Warehouse reporting SAP ERP reporting Production planning Investment planning Procurement planning Cost planning Product/ manufacturing plan HR plan Product/ manufacturing hierarchy HR hierarchy Marketing hierarchy SAP Business Warehouse reporting SAP ERP reporting SAP Business Warehouse reporting Microsoft Excel access Strategic planning Sales planning Headcount planning Marketing planning Profitability planning Balance sheet and profit-and-loss planning Marketing plan Channel plan Channel distribution SAP ERP reporting SAP Business Warehouse reporting Price planning Revenue planning With traditional system: Different planning processes and interfaces No consolidation of related plans between objects Lack of insight of operational planning into the financial bottom line Manual consolidation of planning across objects Inability to update plans and forecasts No what-if capabilities, resulting in guesswork Ad hoc User interaction Traditional Ad hoc User interaction With SAP S/4HANA Process excellence With SAP S/4HANA: Single consolidated view of all planning and forecasting information Rollup of planning from subsidiaries into corporate planning Rollup of planning from operations into financial planning to measure the financial impact of operational plans Leveraging of real-time information to immediately update plans and forecasts No lag time for updates across objects Predictive capabilities to model planning options 2015 SAP SE or an SAP affiliate company. All rights reserved. 37

Real-time cash management and forecasting Use case Description: A recent study of treasury functions conducted by CFO Research has shown that cash management and forecasting have become more

38 Real-time cash management and forecasting Use case Description: A recent study of treasury functions conducted by CFO Research has shown that cash management and forecasting have become more important than ever for a company s success, but they have also become more difficult to do well. With real-time insight, flexible interfaces, and intuitive user interfaces, SAP S/4 HANA Finance delivers the cash management capabilities that companies need to succeed. Industry relevance: cross-industry Unique value of SAP S/4HANA Drive one common view of cash data to help ensure enterprise-wide consistency Enable real-time processes for instant insight to make timely, relevant decisions Use prediction, simulation, and analysis to evaluate financial implications of strategic business choices Top capabilities Real-time information on all cash balances Integrated liquidity management, including cash flow analysis and embedded liquidity planning based on integrated business planning for finance Central bank account management Business innovations Unrivaled level of consistency to forecasting cash balances, cash requirements, and liquidity strategies Secure identification of drivers behind working capital leverage points to quickly impact key business metrics Solutions SAP S/4HANA Finance Quantifiable value * 58% lower treasury and cash management cost 28% lower cost of capital 50% less time needed to gather data for reports *SAP software implementation 2015 SAP SE or an SAP affiliate company. All rights reserved. 38

Business process view Real-time cash management and forecasting Traditional system With SAP S/4HANA X Bank Bank Bank Cloud Bank Bank Cloud Y ERP Z X Y Cash management ERP Z Cash management With

available Limited capabilities to integrate data from other systems No option to run in the cloud Traditional With SAP S/4HANA Process excellence With SAP S/4HANA: New cash management solution

39 Business process view Real-time cash management and forecasting Traditional system With SAP S/4HANA X Bank Bank Bank Cloud Bank Bank Cloud Y ERP Z X Y Cash management ERP Z Cash management With traditional system: Only limited basic cash management functions Almost no analytical capabilities Liquidity planning function outside enterprise resource planning No bank account management available Limited capabilities to integrate data from other systems No option to run in the cloud Traditional With SAP S/4HANA Process excellence With SAP S/4HANA: New cash management solution combining analytical functions and related transactions SAP Fiori embedded and KPI-based analytics available Including integrated bank account management for the central administration of bank accounts and signatories Integrated planning model embedded benefiting from a synchronized and harmonized data model Flexible and non-disruptive cloud or on-premise deployment options 2015 SAP SE or an SAP affiliate company. All rights reserved. 39

Value Case: business transformation in industrial manufacturing Leverage connectivity to devices and sensors to accelerate processes, improve quality, and provide personalized solutions Digital

41 Value Case: business transformation in industrial manufacturing Leverage connectivity to devices and sensors to accelerate processes, improve quality, and provide personalized solutions Digital Economy 1. Connected Equipment 2. Big Data 3. Industry 4.0/ Internet of Things Digital Core Digital Transformation Connected Design Linking telemetry data with operational and design data provides complete lifecycle visibility for improved design Business outcome: lower cost, higher quality Connected Manufacturing Move from batch to real-time manufacturing processes such as MRP to always meet demand Get real-time feeds via Internet of Thing to automate operations Business outcome: increase cost efficiency and asset utilization Serving the segment of one Better synchronization of processes, data and tasks across the highly complex and intertwined manufacturing and channel value chains Transition from reactive to proactive by detecting and analyzing patterns and root-causes as never before Improve agility in response new technologies such as 3D printing quickly adapting processes Business outcome: higher revenues through faster time to market 2015 SAP SE or an SAP affiliate company. All rights reserved. 41

42 Value Case: business transformation in retail Recognize each consumer s journey as unique and provide a personalized experience on all channels while shopping Digital Economy 1. Mobile Retailing 2. Omnichannel Retailing 3. Insight-Driven Retailing Digital Core Digital Transformation Omniscient Retailing Turn into a true customer-centric retail model with a complete view on customer behavior, transactions, and demand signals across channels Drive sales through actionable business insight Provide customer service and seamless omnichannel fulfillment Business outcome: increase revenue and customer satisfaction Contextual Marketing Target segment of one on the fly with real-time contextual information Gain insights into customer sentiments, discover hidden trends and motivation Business outcome: increase revenue from cross-sell/upsell Personalized Engagement Personalize one-on-one offers based on real-time recommendation engine Influence behavior on all channels with real-time access to all buying preferences Business outcome: reduce churn while increasing loyalty 2015 SAP SE or an SAP affiliate company. All rights reserved. 42

43 Value Case: business transformation in retail Recognize each consumer s journey as unique and provide a personalized experience on all channels while shopping Digital Economy 1. Mobile Retailing 2. Omnichannel Retailing 3. Insight-Driven Retailing Digital Core Digital Transformation Omniscient Retailing Turn into a true customer-centric retail model with a complete view on customer behavior, transactions, and demand signals across channels Drive sales through actionable business insight Provide customer service and seamless omnichannel fulfillment Business outcome: increased revenue and customer satisfaction Unified forecasting and out-of-shelf alerts Rely on one powerful forecasting engine for all predictive retail solutions Get intraday insights into forecast and map against real-time inventory and stock projection Alert on out-of-shelf products with predictive innovation Business outcome: reduced shrinkage and optimize inventory optimized assortments and promotions Improve merchandising strategies through better assortment and pricing Gain insights into key items and value drivers, detect product affinities Business outcome: increased success for product launches and promotional duce revenue loss due to stock-outs 2015 SAP SE or an SAP affiliate company. All rights reserved. 43

Value Case: Business transformation in wholesale distribution Recognize each consumer s journey as unique and provide a personalized experience on

Big Data and Insight- Driven Wholesale Distribution Digital Core Digital Transformation Omnichannel Customer Service Seamless customer relationship

Optimization Full Insight into profitable customers/segments and margin destroyers Targeted, insight-driven, optimized, and tailored action (for

44 Value Case: Business transformation in wholesale distribution Recognize each consumer s journey as unique and provide a personalized experience on all channels while shopping Digital Economy 1. Omnichannel Commerce 2. Internet of Things 3. Big Data and Insight- Driven Wholesale Distribution Digital Core Digital Transformation Omnichannel Customer Service Seamless customer relationship management, sales, and service across different channels Addition of Web channel to enable convenient customer interaction via an additional channel Business outcome: increased revenue and customer loyalty Connected Vending Machine Sales Serve your customers with products where and when they need them. Full insight into buying patterns Timely and efficient replenishment signals Business outcome: increased customer loyalty Profitability Optimization Full Insight into profitable customers/segments and margin destroyers Targeted, insight-driven, optimized, and tailored action (for example, campaigns, special offers, address via different channels) to best utilize assets and resources Business outcome: increased margin and profit 2015 SAP SE or an SAP affiliate company. All rights reserved. 44

Value Case: business transformation in cargo transportation and logistics Focus on premium service, efficiency, and automation of real-time processes for long-term profitable growth Digital Digital

Internet of Things Digital Digital Core Core Digital Digital Transformation Transformation Smart Fleet Real-time tracking and control of moving assets Gain insights into vehicle location,

45 Value Case: business transformation in cargo transportation and logistics Focus on premium service, efficiency, and automation of real-time processes for long-term profitable growth Digital Digital Economy Economy 1. Business Networks 2. Big Data 3. Internet of Things Digital Digital Core Core Digital Digital Transformation Transformation Smart Fleet Real-time tracking and control of moving assets Gain insights into vehicle location, diagnostics, driver behavior and fuel consumption Business outcome: improved asset utilization and service levels, reduced operational costs and increase safety Connected Logistics Monitor transportation units and collaborate with partners Gain real-time transparency of transportation progress Get up-to-date information on traffic and recommendations Business outcome: higher turnover and throughput, reduction of carrier idle times Predictive Maintenance Receive sensor /telematics data to instantly assess the condition and health of assets Predict breakdowns to proactively perform maintenance service Business outcome: lower maintenance and service costs, improved asset utilization 2015 SAP SE or an SAP affiliate company. All rights reserved. 45

47 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. 47

48 Reimagine Business with the Next-Generation Business Suite

SAP Digital Boardroom

SAP Digital Boardroom Reimagine Your Boardroom for the Digital Economy Jürgen Bauer Head of CoE BI for MEE SAP Summit 2016, Linz, 26. April 2016 SAP SE or an SAP affiliate company. All rights reserved.