SAP Distributed Manufacturing Powered by SAP Leonardo

SAP Distributed Manufacturing Powered by SAP Leonardo Satya Narayan Sahu Solution Director Leonardo Centre of Excellence, SAP Asia Pacific & Japan PUBLIC

SAP Leonardo Digital Innovation System Connected Data Integration Collaboration Design Thinking Mobile Big Data Business Process Innovation Intelligently connecting People, Things and Businesses Machine Learning Real-time Analytics APIs Natural Language Experience IoT Networks Micro-services 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3

72% of global CEOs believe the next 3 years will be more critical for their industry than the last 50 years. Source: Forbes Insights, 2016 Global CEO Outlook Companies with 50% or more of their revenues from digital ecosystems achieve 32% higher revenue growth and 27% higher profit margins. Source: MIT Sloan Management Review, Thriving in an Increasingly Digital Ecosystem Only 5% of organizations feel that they have mastered digital to a point of differentiation from their competitors. Source: Accenture, Digital Transformation in the Age of the Customer 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4

Market Trends Digital Transformation Emerging Systems of Intelligence Artificial Intelligence & Machine Learning, IoT, 3DP, Insights 75% By 2018, of enterprise and ISV development will include AI or ML - IDC Embedded Machine Learning, Analytics providing built-in guidance By 2019, APIs will be the primary mechanism to connect data, algorithms, and decision services - IDC Conversational Applications: the new User Experience By 2019, naturallanguage generation will be a standard feature of 90% of modern BI platforms - Gartner 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

SAP Leonardo Industry & LoB Innovation Accelerators DESIGN THINKING Industry / LoB knowledge Software Services Fixed price bundles Target common use cases for a 70-80% fit Timeline to value in weeks not years Retail Consumer Products Discrete Manufacturing Chemicals Travel and Transportation Utilities Sports & Entertainment Assets Logistics Store* Inventory* Shelf* Cold Chain* Assets Logistics Manufacturing* Cold Chain* Consumer* Logistics Service & Assets Spare Parts Spare Parts Service & Assets Logistics Service & Assets Venue Team Fans* Predictive Maintenance and Service Asset Intelligence Network Connected Goods Global Track and Trace Distributed Manufacturing Vehicle Insights Digital Manufacturing Insights IoT Foundation and Edge 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

Your Path to Digital Transformation: A differentiated engagement model Explore 1 Leonardo Innovation Services Express Fast Engagement 80% Solution Bundles Discover, Design & Prototype 2 weeks Deliver 2 3 6 weeks Innovation Accelerators /Software & Services 1 Day Leonardo Innovation Services Open innovation Deep Dive Engagement Innovate with SAP Leonardo Design Thinking 9+ weeks 2 3 Discover, Design & Prototype Deliver Enterprise Digital Blueprint / Industry 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8

SAP Leonardo IoT Innovation Portfolio SAP Leonardo Bridge Connected Products Connected Assets Connected Fleet Connected Infrastructure Connected Markets Connected People Product Insights Goods and Equipment Fixed Asset Insights Manufacturing Execution Mobile Asset Insights Logistics Safety Building Insights Construction Market Insights Rural Areas People and Work People and Health Supply Networks Manufacturing Networks Logistics Networks Energy Grids Urban Areas People and Homes SAP Leonardo Edge Computing SAP Leonardo Foundation SAP Cloud Platform 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9

SAP Connected Manufacturing Industrial IoT Distributed Manufacturing Network SAP Digital Manufacturing Insights S/4 HANA Enterprise Management Asset Intelligence Network» Business Context» OEE, Energy Management Connected Manufacturing SAP ME SAP ME SAP QIM SAP MII SAP CAMS SAP MII» Multiple vendors» Multiple machines SAP PCo SAP PCo SAP OEE 2017 SAP SE or an SAP affiliate company. All rights reserved. 10

SAP Manufacturing Execution Suite Solution Suite Overview SAP Manufacturing Execution»Manages and controls manufacturing and shop floor operations»integrates business systems to the shop floor»complete component and process traceability across global operations Manufacturing Functionalities 2017 SAP SE or an SAP affiliate company. All rights reserved. 12

SAP Manufacturing Case Studies Smart Factory Harley Davidson Process Optimization Execution & Control $2.5MM Visual Work Instructions Business Benefits from 21 days 6 >$2.5MM to hours Share Repurchase 3D Ideation w/ms Connect 2017 SAP SE or an SAP affiliate company. All rights reserved. Operations Monitoring Reduce Time -7% +19% +25% Reduced Cost Net Margin Dividend 1616

SAP Distributed Manufacturing Unlocking the power of additive manufacturing

https://news.sap.com/sap-offers-growing-ecosystem-for-3d-printing-innovation-with-sap-distributed-manufacturing/

Additive Manufacturing (3D Printing) - Market Viewpoint 30 3D Printing Industry Growth ($ Billions) 25 26 20 15 10 9 16 By 2020: Nearly 65 percent of discrete manufacturers expect to use 3D printers to produce components for products they sell or service* 5 5 0 2015 2017 2019 2021 * http://www.gartner.com/newsroom/id/3476317 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 19

3D Printing: Opportunities for 3D Printing Along the Product Lifecycle Product Development Production Preparation & Ramp-Up Production Recalls Service and Spare Parts Make (Print) to Order of parts for prototyping Creating complex tools (e.g. handling tools of robots) and printing of parts before mass production can start Parts with complex geometry but better performance Customized parts (Design, Color, ) new interior options Ramp-Up Production before tools for mass production are ready Printing of modified parts without need for changing mass production tools and long ramp-up times Reducing number of spare parts/ printing spare parts on demand New use cases: Selling the right to print # of parts More flexibility to react to customer demand, providing new options Time to Market Lower level of inventory Reduce capital required Faster provisioning of parts 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 21

Enterprise 3D Printing: Common Problems and Requirements Companies face a number of challenges to leverage the potential of 3D Printing Requires access to Service Providers that can provide a quick first price estimate & feasibiluty check Rose Hansen, Building the future: Modeling and uncertainty quantification Controlled for accelerated certification, process Science and Technology to Review, January/February 2015, https://str.llnl.gov/january-2015/king, accessed collaborate November 5, 2015. on quality of Engineering Samples, with KPI s to meet and release process Integration into Business System for direct procurement (via defined on-demand supplier) or in-house production 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 22

SAP Distributed Manufacturing Co-Innovation Customers Strategic Partner UPS Manufacturers Whirlpool Jabil Krones Sealed Air Service Providers Linear AMS Fast Radius AP Works HP Inc. Stratasys 3D Printing Studios 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 23

SAP Distributed Manufacturing: Cloud based Collaboration Platform between Manufacturer / Designer / On-Demand 3D Print Service Providers Manufacturers SAP Distributed Manufacturing Content Integration Ecosystem Digital Part Library (Private) Material Management Procurement Partner Integration On-Demand 3D Print Service Provider Customer Supplier Profile (Public) 3D Print Service Providers Customer Suppliers (Private) Collaboration (Private) Material Provider Customer Part Identification (Private) Engineering Service Provider OEM 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 24

SAP Distributed Manufacturing New World with SAP Identifying the parts for digital part library. Export parts from SAP S/4HANA into SAP Distributed Manufacturing Select the manufacturing service provider(s) from the network based on detailed profile Collaborate on design, manufacturing options and lead times, define quality criteria; production part approval Procurement process integrated with SAP S/4HANA Partner integration to complement End2End process; for example IP protection 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Customer 25

SAP Distributed Manufacturing: Parts analysis The parts analysis allows manufacturer to identify long tail products using SAP Distributed Manufacturing and collaborate with partners to find solutions Identify Analyze Select Collaborate Select and export parts from SAP S/4 HANA based on various criteria into SAP Distributed Manufacturing Identify the long tail Analyze the long tail problem by adding additional technical information to the part Filter the list manually or through partner solutions to select suitable parts for API partner analysis Collaborate for selected parts with service providers for production proposals & design optimization, prices and first article production 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Customer 26

SAP Distributed Manufacturing: Collaboration on production data, design and prices Key Capabilities Demand quantity forecast estimates Material, resolution, tolerance, post processing Price proposal Supplier proposed production options Automatic conversion of CAD, STL file formats into lightweight viewing file Embed redlining and discussion into design visualizations View design, commercial and technical documents 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Customer 27

SAP Distributed Manufacturing: Collaboration quality and process parameters Key Capabilities Engineering samples / first article process Required part characteristics and qualities Results recording (supplier and customer) and approval process Recording of process parameters: machine type, serial #, material (filament) and supplier etc. 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Customer 28

SAP Distributed Manufacturing: RFQ and procurement integration with SAP S/4HANA Key Capabilities Connect with suppliers and integration into customer s SAP S/4HANA Directly generate Request for Quotation (RFQ) from collaboration room Collaboration key data and link to collaboration are attached to RFQ and subsequent procurement documents Route purchase orders to integrate with partner solutions; as example for IP protection 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER *SAP S/4HANA purchase order involving partner application from Leo Lane Customer 29

SAP Distributed Manufacturing: Enhancement framework for partners Key Capabilities Open Interfaces (APIs) allow you to enhance the solution Customer Partner Solutions for SAP Distributed Manufacturing Procurement data Customer configuration Modified print file Seamless Integration into standard procurement processes Versatile framework supports many business scenarios Partner enhancements provide immediate added value to SAP Distributed Manufacturing customers Notifications Document repository SAP ERP Integration Design collaboration Quality parameters SAP Distributed Manufacturing Shared part data Pricing and 3D print data Service Provider Application Program Interface (API) 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Customer 30

SAP Distributed Manufacturing: Partner solution for IP protection and print consistency The LEO Lane solution will provide file protection and manufacturing parameter enforcement to ensure that what you agreed on in the SAP Distributed Manufacturing Collaboration Room is executed each and every time in production Key Capabilities Control Parts will only be produced according to the customer s specifications or not at all. LEO Lane enforces manufacturing parameters and prevents any changes in the design Protect Design files as well as manufacturing parameters are protected. Only the number of parts allowed will be produced, thereafter file cannot be used Track Real-time insights: when, where, and how each part is produced Secure Purchase Orders Protected LEO files are created automatically for every purchase order released from a manufacturer s SAP system 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Customer 31

https://discover.sap.com/sap-ups-3d-printing/en-us/index.html Additive Manufacturing Reshaping Logistics http://www.moog.com/news/blog-new/introducingveripart_issue3.html 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Customer 32

Key Benefits Increase Cost-effectiveness of small production and prototype runs Improve Production consistency with high-quality, low-cost certified parts Innovate Reimagine product design made possible with 3D printing Unlock Access to 3D printing to customers who have currently not invested in the technology Save Significantly with a reduction in parts inventory Deliver Faster than ever before even within a day 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER Customer 34

Thank you Satya Narayan Sahu Solution Director, SAP Leonardo COE, Asia Pacific & Japan satya.narayan.sahu@sap.com