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Simplify The Digital

Transformation

Thomas Madsen, EMEA Lead Enterprise Architect

May, 2016

Stage 1: No Ownership

Stage 2: No Molecules

Stage 3: No Operator Stage 4: No Comparison

fromThings

to Outcomes

Ph

ysic

al V

alu

e c

ha

in

Create

Thing to Insight

Insight to Action

Action to Outcomes

Evolve

Know

Lower cost

New revenue

Optimized productivity

Increased uptime

Improved turnarounds

Greater capacity Better efficiency

Faster deliveries

Less waste

New products & services

Usage-based pricing

New business models

Digital Value chain

Connect

everything with

intelligence

Analyse

Transform

Streamline

Business

Operations

Innovate

Business

Models for

desired

Outcomes

Monitor assets

and send alerts Integrate

Big Data Smart Data Business Processes

Machine to Machine

Transactional Data

Consumer Data

Social Media

Structured and Unstructured

Digital Core

Solid Core

• System of Record

• Invisible to the User

• Long Release Cycles

• Reliable, Inflexible

• Complex

• Think: Uber’s Backend Systems of Record

Agile Layer

• System of Innovation

• Close to the User, Personalized

• Short Release Cycles

• Agile, Extensible, Simple

• Think: Uber Mobile App System of

Innovation

Cloud

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End Consumer-

Driven Economy

Technology Adoption Is Accelerating

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The Digital Disruption Is Happening

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Demand Sensing

Same Day Delivery Omni-Channel Sales

Customer Centricity

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Digitized Inventory

Lot Size of One Configured Products

Individualized Products

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Talent

Sustainability

Natural Resources

Resource Scarcity

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Social Networks Asset Networks

Business Networks

Sharing Economy

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Digital Transformation in Extended Supply Chain

Individualized products Products and assets

Resource scarcity Workforce and resources

Customer centricity

Customers and markets

Sharing economy Suppliers and logistics

Plan

Produce

Operate

Deliver

Design

Respond

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SAP Approach to Digital Connect the enterprise with the world

Customer Experience Omni-Channels

Workforce Engagement

Assets, Internet of Things & Big Data

Supplier Collaboration Business Networks

Digital Core

IoT triggers multiple discussions along the enterprise value chain

R&D Sales Manufacturing Aftermarket Service Supply Chain

Smart Data

Track &

Trace

Adaptive

Logistics

Performance based

Contracting

Smart

Products

Digital

Product Memory

Resilient

Production

Energy

Management

Remote Service

Management Predictive

Maintenance

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Things Things

Things

Applications

React in real-time

Networks

Platform

Hana Cloud Platform

Understand in real-time

Ariba

Revenue Availability Loyalty Cost On-time

…but it‘s really very simple!

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Kaeser Compressors

Source: Kaeser Kompressoren

25 Source: http://www.kaeser.de/produkte/contracting/default.aspx

26

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The Kaeser Kompressoren Overview

Source: German language presentation

delivered by Kaeser

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Source: Hagleitner presentation

SAP Executive Summit – Industrie 4.0

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Industrie 4.0 – Driving Innovation Building blocks for Industrial Internet of Things

…