Digital Transformation with Enterprise Digital Twins

Digital Transformation with Enterprise Digital Twins TRENDS, DIRECTIONS AND ROADMAP Michiel Jorna Director Transformation Solutions Asia, Pacific & Japan INNOVATION TOUR 2018 June 7 Sydney 2018 Software AG. All rights reserved.

YOUR DIGITAL TWIN 78 bpm 125 kcal 2

Enterprise Digital Twin Digital representation of organizational units, their assets and processes Digital Twin Digital representation of physical objects and systems 4 2017 Software AG. All rights reserved. For internal use only

ENTERPRISE DIGITAL TWIN DELIVERS EXCELLENCE FOR THE BUSINESS VISUALIZE interdependencies related to the organization and gives insights on better operations TRANSLATE the strategy for digital transformation into business outcomes and initiatives CONNECT the business operating model with real-life data SIMULATE changes and EVALUATE the effects CONTROL how the business operates in reality and IMPROVE it continuously 5 2018 Software AG. All rights reserved.

MANAGEMENT SYSTEMS are the living examples of your Enterprise Digital Twin! twin.softwareag.com ENTERPRISE DIGITAL TWIN USE CASES QUALITY MANAGEMENT RISK & COMPLIANCE MANAGEMENT SUPPLY CHAIN MANAGEMENT 6

LARGE ENTERPRISE SCENARIOS >1M models in one DB German retailer ~10M objects in workspace until 2019 ~5k parallel APG instances until 2019 with 500k process steps 120k End users at a Brazilian Bank 100k End users at a UK-based retailer 90k End users at a Dutch tech leader 11 2018 Software AG. All rights reserved.

END-USER EXPERIENCE IS KEY 1 Right to left support The viewing of ARIS Connect now supports Rightto-left (RTL) display so that the display is fully mirrored. This is important for users from countries with RTL languages (e.g. Arabic, Hebrew, Persian, and Urdu). 2 Easy Navigation The Steps view allows navigating via Process interfaces between different processes. Steps view click 3 Additional out of the box views Extended EPC Customer Journey Maps can be shown with less detail. 13 2018 Software AG. All rights reserved.

END-USER EXPERIENCE IS KEY NEW VISUALIZATIONS 1 2 3 4 Representation of planned portfolio changes in portfolio charts Generate PowerPoint decks from portfolio and architecture information Dynamically generate meta model visualizations for selected objects Provide versatile visualizations based on customer image libraries and simple query logic Lower barriers of entries for non-expert stakeholders and decision makers to help broadening the user base 14 2018 Software AG. All rights reserved.

SPEECH-BASED INTERACTION 1 2 3 Request dashboards: Give me an overview of all change requests. Request enterprise information: Show me the processes, Controlling is involved in. Speech based process analytics: Which process step has the longest throughput time? 15 2018 Software AG. All rights reserved.

COMPANY-WIDE ROLL OUT OF DESIGN STANDARDS 16

PROCESS DESIGN & METHODOLOGY BPMN LEADERSHIP BPMN Leader ARIS top ranked as an BPMN 2.0 implementer by OMG / MIWG (link) Process Modeling Conformance Class FULL improved TRANSFORMATION of EPC or E-BPMN to BPMN 2.0 standard CONTINIOUS BUSINESS / IT ROUNDTRIP support by stability of external object IDs & export of ARIS attributes as standard-conformant extensions 17 2018 Software AG. All rights reserved.

INTEGRATED SEMANTIC CHECKS Flags for how to solve the issue? Quantitative result of a semantic check 18 Semantic check panel: errors, warnings and notes step-by-step 2017 Software AG. All rights reserved. For internal use only

FULL JIRA INTEGRATION IMPROVE YOUR ORGANIZATION S AGILE CAPABILITY Use decisions taken in Alfabet on portfolio composition and demand fulfillment to inform operative development work for prioritization Tie architecture portfolio elements, e.g. applications, components and standard platforms as well as projects in Alfabet, to projects that are tracked in Jira 19 2018 Software AG. All rights reserved.

ENHANCED API PLANNING AND MANAGEMENT APIs AS THE CORE OF COMPANIES DIGITAL BUSINESS STRATEGIES Make the API an integral part of digital business solution planning and accessible to business stakeholders. 1 2 Enable API business managers as a new functional role Support strategic planning for API 3 4 Inform API portfolios with operational API performance metrics Provide API Portal users with advance information on forthcoming API 20 2018 Software AG. All rights reserved.

21 2017 Software AG. All rights reserved. Multiple congressional representatives asked Zuckerberg whether or not he would enforce GDPR for Americans, a question he repeatedly dodged by promising GDPR controls rather than protections.

CHERISH YOUR CUSTOMER, PROTECT THEIR DATA 22

THE WAY TO OPTIMIZED DATA PROTECTION PREPARE your organization EVALUATE processing activities IMPROVE your organization ENSURE compliance Run readiness survey Set up data, IT & process inventories Build Records of Processing Activities (ROPA) Enrich Processing Activities (PA) information Qualify PAs for Data Protection Impact Assessment (DPIA) Assess PA risks Run DPIA for high-risk PAs Evaluate need for improvement measures Mitigate data privacy risk Implement or adapt processes & systems Establish data protection policies in the organization Implement incident management system Test internal controls & risk mitigation measures Sign off business organization hierarchies Plan & execute internal Data Protection audits Requirements evaluated RoPA report available High-risk PAs identified Risk management report available Risk mitigation measures implemented Incident management system available GDPR management system implemented 23 2018 Software AG. All rights reserved.

THE WAY TO OPTIMIZED DATA PROTECTION PREPARE your organization EVALUATE processing activities IMPROVE your organization ENSURE compliance Run readiness survey Set up data, IT & process inventories Build Records of Processing Activities (ROPA) Enrich Processing Activities (PA) information Qualify PAs for Data Protection Impact Assessment (DPIA) Assess PA risks Run DPIA for high-risk PAs Evaluate need for improvement measures Mitigate Data Privacy risk Implement or adapt processes & systems Establish Data Protection policies in the organization Implement incident management system Test internal controls & risk mitigation measures Sign off business organization hierarchies Plan & execute internal Data Protection audits Monitor Requirements evaluated project status and results RoPA report available High-risk PAs identified Risk management report available Risk mitigation measures implemented Incident management system available GDPR management system implemented 24 2018 Software AG. All rights reserved.

25 CONNECT DESIGN & REALITY

ARIS FOR SAP SOLUTIONS AVOID TYPICAL SAP PROJECT BLUNDERS Vaguely defined business requirements SAP Process Design and Blueprinting Incomplete testing Insufficient training Inadequate communication and collaboration Testing of SAP Solutions Communication of SAP Solutions Training and Go-Live of SAP Solutions 26 2018 Software AG. All rights reserved.

ARIS FOR SAP SOLUTIONS SUPPORTS YOUR COMPLETE MIGRATION TO SAP S/4 HANA Legacy SAP ECC Webinar recording SAP S/4 HANA Manage your Migration to SAP S/4 HANA with a Process- Discover Prepare Explore Realize Deploy Run Driven Solution ACTIVATE Provide transparency Analyze migration impact Define & approve requirements Test & train Communicate Monitor & control powered by powered by powered by powered by powered by powered by ARIS PPM, ARIS Aware, SAP Re-Docu ARIS Design clients & Reference Content ARIS Designer clients & ARIS Process Governance ARIS Test Designer, ARIS Aware & ARIS Process Governance ARIS Connect & ARIS Process Governance ARIS Aware & ARIS PPM 27 2018 Software AG. All rights reserved.

MONITOR & CONTROL IOT PROJECTS Master IoT enabled business processes and support continuous process improvement based on visual analytics and process instances analysis 30 2018 Software AG. All rights reserved.

GRAPHICAL REPRESENTATION - VARIOUS USE CASES Center of Excellence Process Performance Customer Experience Enterprise Architecture Business Usage Strategy Internet of Things SAP Synchronization 31 2018 Software AG. All rights reserved.

ENTERPRISE DIGITAL TWIN - SCENARIO PLANNING TEST & OPTIMIZE YOUR PROCESSES FIRST Scenarios can be 1 Variations of the process, the allocated resources or the corresponding utilization costs. 2 Variations of the expectations, when a process is being executed in reality - especially regarding frequencies, times or volumes. 33 2018 Software AG. All rights reserved.

ENTERPRISE DIGITAL TWIN - SCENARIO PLANNING COMPARE SITUATIONS AND BENCHMARK SOLUTIONS Calculate costs Discover process weaknesses & bottlenecks Calculate costs Ensure better customer interactions Optimize times & resource utilization Identify best practices in your processes Improve process efficiency & effectiveness 37 2018 Software AG. All rights reserved.

ENTERPRISE DIGITAL TWIN - PROCESS MINING Interaction Mining Involved roles Customer service Back office Logistics Billing Finance Process Mining Discovered processes Create order Assign order Ship order Create invoice Check payment Order Assignment Shipping Invoice Payment Application systems data extraction Generated data 38 2018 Software AG. All rights reserved.

ENTERPRISE DIGITAL TWIN - ARIS PROCESS MINING Design to-be process design Process Conformance Checking Process Mining as-is process monitoring Artificial Intelligence powered by ARIS Process Mining Process Mining 39 2018 Software AG. All rights reserved.

PROCESS MINING - CONFORMANCE CHECKING Overall process conformance rate Conformance rate over time Conformance rate per dimensions Conformance issues and root causes Conformance issues and root causes Transparency on process conformance Identify root-causes for non-compliance 40 2018 Software AG. All rights reserved.

Process variants Process Variant Discvoery BEST PERFORMER due to lean processes Process WEAK POINTS identified in behavioral pattern 41

Drs. Michiel Jorna Director Transformation Solutions, Asia, Pacific & Japan michiel.jorna@softwareag.com twin.softwareag.com 43