Digital Supply Chain of ONE

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Digital Supply Chain of ONE The Company Strategy which Transforms Industries Hans Thalbauer, SAP March, 2018

New Business Models Enabled by Digital Supply Chain Industry boundaries are blurring Consumer Product Companies On-line Retailers Logistics Companies Manufacturers Service Providers from WHOLESALE MODEL to DIRECT-TO-CONSUMER MODEL from SAME-DAY DELIVERY to SAME-HOUR DELIVERY from PHYSICAL INVENTORY to DIGITAL INVENTORY from PRODUCTS to SOLUTIONS 2

Introducing the Digital Supply Chain of ONE Four strategy elements CUSTOMER CENTRICITY PREDICTIVE BUSINESS SMART AUTOMATION TOTAL VISIBILITY 3

Customer Centricity Plan and deliver to the customer segment of ONE Touchless Supply Chain Drive processes based on real time demand Responsive and flexible planning Network of business partners Omni-Channel Logistics 4

Predictive Business Design and maintain the product of ONE Network of Digital Twins Digital copy of physical asset or product Product Intelligence Asset Intelligence New service and business model 5

Smart Automation Manufacture the lot size of ONE Personalized products Flexible manufacturing cells Automated activities and processes Machine learning and AI 3D printing and Additive Manufacturing 6

Total Visibility Analyze and manage the supply chain of ONE Create a digital mirror of your business Connect with your business network Ensure sustainability and compliance Perform risk management Analyze, search and discover in real-time 7

Creating an Intelligent, Digital Supply Chain of ONE Plan and Deliver to the segment of ONE Design and Maintain the product of ONE Manufacture the lot size of ONE Analyze and Manage the supply chain of ONE 8

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 9

The Intelligent Digital Supply Chain of One, Powered by SAP Leonardo SAP Integrated Business Planning Digital Business Planning SAP S/4HANA Digital Manufacturing Digital Logistics Digital Products Digital Assets SAP Ariba Strategic Sourcing Direct Material Collaboration Industry 4.0 Connected Manufacturing Connected Logistics Connected Products Connected Assets Powered by SAP Leonardo Internet of Things Big Data Machine Learning Blockchain Analytics 10

Industry 4.0 Solutions Characteristics of Industry 4.0 Solutions Intelligently connecting Things with People and Business Processes is the guiding principle, which implies the focus on Integration and Networks All applications leverage the same date model and are being built on the SAP Cloud Platform, leveraging the SAP Leonardo technologies and Infrastructure Industry 4.0 solutions are predictive, networked, mobile and analytical and have a common User Interface (Bridge) Analytical Applications Mobile Applications Network Applications AI Applications Powered by Leonardo Logistics 4.0 Manufacturing 4.0 Asset 4.0 Track & Trace Driver Safety Logistics Network Vehicle Insights Manufacturing Insights Worker Safety Distributed Mfg Predictive Quality Strategy & Performance Asset Manager Asset Network Predictive Maintenance The Network of Digital Twins Analytics Blockchain Internet of Things Machine Learning Big Data 11

Thank you. Contact information: Hans Thalbauer Mobile: +1 650 223 4472 E-mail: hans.thalbauer@sap.com

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