K4U Knowledge for Success Internet of Things Webinar Series

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Webinar 4 User Groups IoT Overview Nils Herzberg SVP IoT GTM March 8 th, 2016 Outcomes to

Unprecedented Change Fueled by Hyper-Connectivity 2.5 billion Connected people on social networks by 2020 75 billion Connected devices by 2020 $65 trillion Global business trade by 2020

Manufacturing Consumer Industries Large equipment manufacturers are moving towards providing not just manufacturing equipment, but rather outcome-based services Traditional clothing retailers transforming into healthcare companies through connected apparel and digital fitness tools

Value chain fromthings Outcomes Lower cost Optimized productivity Improved turnarounds New products & services The Outcomes Customers Want New revenue Increased uptime Faster deliveries Usage-based pricing Greater capacity Better efficiency Less waste New business models Create new business value and ecosystem advantages Create Action Evolve business processes to turn insight into outcomes Evolve Insight to Action Know where opportunity and risk exists from connected data Know Thing to Insight Things Outcomes to

OT Things IT Outcomes fromthings End-to-End Connected Solutions across Industries Discrete Manufacturing Transportation & Logistics Energy & Natural Resources Consumer Industries Connected Manufacturing Connected Logistics Connected Vehicles Connected Energy Connected Consumer Predictive Maintenance and Service / Asset Intelligence Network SAP HANA Platform Tech Partners Horizontal Outcomes to

Application Extension fromthings SAP & Partner IoT Apps SAP Internet of Things Platform Connected Devices Machine Integration IoT Integration Services SAP HANA Cloud Platform HANA Cloud Integration HANA Cloud Connector IoT App Services IoT Analytics SAP IoT Edge SAP / Partner Cloud On-Premise Process & Data Integration Non SAP Cloud Application Framework SAP & non- SAP Core Apps Machine Integration SAP HANA Platform IoT Integration Services Dynamic Tiering VORA Smart Data Integration Process Integration Other DB s Hadoop Outcomes to

The First Question What are you trying to do? Type 1 - New data for existing apps and analytics Type 2 - IoT point applications SAP Business Suite or S/4HANA SAP IoT point solution SAP analytics SAP analytics Data integration/hana/hcp Data integration/hana/hcp Existing sensor data New sensor data Existing sensor data New sensor data

The Next Question Cloud or OnPremise APPS Applications Applications Platform HANA HANA Cloud Platform OnPremise Cloud

The Next Question Cloud or OnPremise Use SAP s pre-integrated stack for your IoT needs Extend existing SAP product investments for IoT Application Application Application Application Application Application Application SaaS Softw are Analytics & Prediction Analytics & Prediction PaaS Platfo rm HANA Cloud Platform (incl. Device Management, Connectivity and Data Ingestion options) HANA, VORA (incl. Device Management, Connectivity and other Data Ingestion Options) Existing assets and sensors New assets and sensors Existing assets and sensors New assets and sensors Cloud On Premise

SAP HANA Cloud Platform

Predictive Maintenance and Service Predictive Maintenance and Service Asset Intelligence Network

Asset Maintenance Is a Huge Cost Factor While the world's GDP is around $46.6 trillion, the value of all assets is assumed to be much higher. Maintenance spend alone comes up to $447 billion. Source: Global Framework on Maintenance and Asset Management

Improving Asset Reliability Promises Large Savings Opportunities Improved equipment maintenance is a major source of value: 10 40% Reduction of maintenance costs of factory equipment $630B USD Manufacturing up to 50% Reduction of equipment downtime 3 5% Reduction of equipment capital investment by extending the useful life of machinery Potential economic impact per year in 2025 Worksites Oil & Gas, Mining, Construction 5 10% Reduction of maintenance costs 3 5% 5 10% Increase in output by avoiding unplanned outages Reduction of equipment capital investment by extending the useful life of machinery $360B USD Potential economic impact per year in 2025

2 Major Usage Types for Predictive Maintenance Asset Asset Operator Manufacturer Remote Service Management New business models around the device Service Agent / Service Technician / Engineer / Warranty Claims Manager SAP Predictive Maintenance and Service Maintenance Engineer / Reliability Manager / Operations Engineer / Quality Manager Predictive Maintenance for critical assets Operations improvements Quality improvements Physical Asset Level CRM, Customer Service Enterprise Asset Management

Our predictive maintenance solution has enabled us to improve service levels for customers. Outcomes to

Asset Manufacturer Remote Service Management New business models around the device Service Agent / Service Technician / Engineer / Warranty Claims Manager CRM, Customer Service

8-10% reduction in maintenance costs Asset Operator Predictive Maintenance for critical assets Operations improvements Quality improvements Maintenance Engineer / Reliability Manager / Operations Engineer / Quality Manager Enterprise Asset Management Outcomes to

Annual spend for asset maintenance reduced by approximately 1-2% Outcomes to

Connected Manufacturing Manufacturing Integration & Intelligence Manufacturing Execution Plant Connectivity Predictive Maintenance and Service Asset Intelligence Network

Intelligent Factory as Data Source for many IoT scenarios

IoT scenarios impact all layers of business

Reduced production lead time for customized motorbikes from 21-day cycle to 6 hours Outcomes to

Connected Manufacturing is a major topic in the Process Industry

Connected Logistics Track & Trace Network Logistics Hub

The Usage Scenario for Networked Hub Logistics

Connected Vehicle Network Logistics Hub SAP Vehicle Insights SAP Vehicle Network

Examples for Vehicle Analytics

Make food production more efficient with Digital Farming

Asset Information Network OEMs & Service Providers Applications Operators Pump OEM Global Inventory Asset Lifecycle Pay on Performance Mining Company Valve OEM Equipment History Lease Management Benchmarking Work Scheduling O&G Company Service Provider Utility Company Content Integration Network

SAP Asset Intelligence Network Collaboration between OEM, service provider, and operator

SAP s portfolio of IoT Applications designed to drive outcomes Connected Manufacturing Transactions Available at Remote Sites People, Supply Replenishment Project Updates Reporting Prescriptive Maintenance Condition Monitoring Alerting Vibration Analysis Predictions Asset Intelligence Network Up to date service documentation Spare parts / Replacement Performance Benchmarking Real-time visibility into plant and logistics operations Monitor, analyze, and predict asset performance to reduce unplanned downtime and increase EH&S Real-time visibility of production operations. Intelligent production output, shutdown/turnarounds Connected Logistics Scheduling Routing Mobile Work Mgt Maintenance One stop shop for manufacturers, service providers & operators to collaborate on asset usage Effectively allocated service providers and field maintenance personnel work and task allocations

In Conclusion SAP IoT stands for closing the loop from Things SAP IoT Platform: IoT Edge Client, SAP HANA Platform (On-Premise), SAP HANA Cloud Platform (Cloud) Key solutions include Predictive Maintenance and Service, Connected Manufacturing, Connected Logistics, Connected Vehicles, Connected Consumer, Connected Retail IoT is an ecosystem play, SAP will partner with various players to deliver an end-to-end IoT offer Outcomes to

Q&A Outcomes to

Thank You Outcomes to

SAP Internet of Things Webinar Series SAP IoT Overview Nils Herzberg Mar 8 SAP HANA Cloud Platform & HANA Cloud Integration Udo Paltzer / Alex Braun Mar 15 SAP Predictive Maintenance Simon Lee Mar 21 SAP Logistics Hub Uwe Kürsten Mar 22 Create new business models based on vehicle data analysis with SAP Vehicle Insight Mirjam Metzler Mar 29 SAP Asset Intelligent Network Dirk Kempf Apr 5 SAP IoT for Industries (Self-optimized production) Alex Mathew Apr 7 SAP IoT Application Services Harry Lube Apr 26 2016 SAP SE or an SAP affiliate company. All rights reserved. Customer 39

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