what's the biggest barrier to business innovation? the answer is simple

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What’s The Biggest Barrier to Business Innovation?Timo Elliott, SAP Senior Director, Global Innovation Evangelist, October 2014

@timoelliott

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business leaders believe that customer experience is the next battleground

increase in operating margin in retail leveraging Big Data as the new resource

higher operating margin than the ones with poor employee engagement

higher sales & margins when effectively running a networked enterprise

71% 3X 60%

50%

There are lots of new business opportunities

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Cloud

Simplicity, time to value, speed to

outpace disruption

Mobile

The new de facto standard in business

interaction

Social

Connected businessand social networks

Analytics

Real-time analyticsfor behavioral and predictive insights

More than 60% of CEOs expect 15%–50% of their earnings growth in the next 5 years to come from technology-enabled business innovations.– McKinsey study, 2013

”“

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There are lots of new technology possibilities

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”“ 10.2% or $237B* of profits

are lost by top 200 global companies due to hidden costs of complexity

of standout CEOs intendto simplify operations

61%

Complex Business Processes

of executives said complexity of data is the

largest IT challenge

73%

Complex Technology

increase in profit margins from effectively

managing complexity

25 – 100%

Complex Decision Making

BCG 2010 IBM CEO Survey 2010 Forrester, 2013

*Global Simplicity Index, 2013

So what’s stopping us? Complexity.

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40% of executives worry that their organizations will not keep pace with technology change and lose their competitive edge.

– McKinsey study, 2013

”“

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Radical simplification is needed to unlock potential

Forrester IT Survey, 2013

72%Keep the lights on

Drive business innovationInnovationCustomer ExperienceEmployee EngagementResource OptimizationNetworked Business

Drivebusiness

innovation

Keep the lights on

ComplexityDecision MakingBusiness ProcessTechnology

28%

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SOCIALANALYTICS

MOBILEAPPLICATIONS

CLOUDNETWORKS

Making everything Simple

SIMPLE

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Simplify your Business Processes

Faster Process massive amounts

of data, and deliver information at

unprecedented speeds

SmarterRethink and envision entirely new ways and applications to run your

business

SimplerDramatically simplify

complex and expensiveIT architectures

Insight to actionContextual. Real-time. Closed-loop.

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Molson Coors

“Why we moved to BW on SAP HANA: the need to simplify”

“Just do it! It will be completely amazing. We get emails every day saying 'this is so cool’”

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Unilever

“if we knew what we know now, we would have started deploying HANA much earlier, because it’s so important for business!” 

“We think it’s even more disruptive than we initially thought — we’ve only just started” 

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Finance, Simplified

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Finance, Simplified

Today: Dynamic, on-the-fly reporting enables analysis & simulation of organizational

changes. Impact analysis is immediately available.

Before: Static, predefined aggregates

cannot handle structural changes within the organization.

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Finance, Reinvented

SAP Working Capital Analytics

SAP Cash Management

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Textile Rubber & Chemical Company

500 Employees, 4 internal IT staffBusiness Suite on HANA

Why SAP Suite on HANA? Because it simplified our SAP Landscape

With HANA Live, in 5 minutes we could see more information than we could in the last 7 months

”

“

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Simplify your Decision Making

IntuitiveResponsive, mobile-ready interfaces that adapt to all

devices

People-CentricWorkflows and

customization that correspond to the needs of

people, not systems

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Simple User Experience

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Simple User Experience

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Planned Cockpits Chief Financial Officer

Financial Close Manager

Cash Manager

Receivables Manager

Payables Manager

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Smart Business Cockpits

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Simplify your Technology

Public cloud

Human resourcesCustomersSuppliers

Managed cloud

SAP Business Suite

SAP BW

Marketplace

Apps built on SAP HANA Cloud

Partner ISV apps

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An Open Platform For Innovation

1,200Startups with SAP

HANA

2,000Software and tech

partners

3,000Service partners

4,000Solution resellers

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Weissbeerger Beer Analytics

Seamless Internet of Things, Cloud, Analytics, Social

New Applications, Made Simple

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Simplifying Business

BusinessOutcomes

Hyper-personalizeCustomer Experience

Plan & optimizeResources in Real-time

Engage & empowerWorkforce of the Future

Harness the intelligence ofNetworked Economy

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CUSTOMERENGAGEMENT

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80% of CEOs think they deliver a superior customer experience

Source: The New Yorker

-- but only 8% of customers agree.

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Reinvent Luxury Service

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Burberry

The benefits of the SAP HANA platform are significant with a hugely simplified footprint.

We’re putting the whole business on the SAP HANA Enterprise cloud ”

“

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Point of Sale Explorer

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Medtronic

Combine structured and unstructured data for

business value

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New Products & Services

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EMPLOYEEEMPOWERMENT

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Worldwide, Only 13% of Employees are Engaged at Work

Source: Gallup State of the Global Workplace Report

France

Mexico

Paraguay

Argentina

Ecuador

Peru

Venezuela

Honduras

Nicaragua

Uruguay

Bolivia

Dominican Republic

Chile

El Salvador

Colombia

Guatemala

Brazil

USA

Costa Rica

9%

12%

14%

16%

16%

17%

18%

19%

22%

22%

23%

23%

24%

24%

26%

26%

27%

30%

33%

65%

60%

59%

56%

70%

62%

60%

55%

53%

54%

58%

59%

58%

56%

61%

55%

62%

52%

53%

26%

28%

27%

28%

14%

21%

22%

26%

25%

24%

20%

18%

18%

20%

13%

19%

12%

18%

14%

Engaged

Not Engaged

Disengaged

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Corporate Culture Transformation

SAP Jam has become the systemic social

glue that ties the organization together”

“

—Dan Pontefract, Telus

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Germany’s “12th Man” In World Cup — Big Data

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RESOURCEOPTIMIZATION

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Revealing Processes in Order to Optimize Them

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Smart Port Logistics

48

Closed-loop analytics

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THE NETWORK ECONOMY

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Networked economy: The next economic revolution

1850

Industrial economy

2020

Networked economy

1990

Internet economy

IT economy

1970

$0.36T

$12.10T

All figures are in Trillions; 1990 international dollars; Source: Department of Economics, UC Berkeley, BAIN 8 MacroTrends Brief.

$27.50T

Internal | © 2014 SAP SE or an SAP affiliate company. All rights reserved.

$90.0T

Grossworld

product

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The Ariba Network

SuppliersBuyers

ProcurementSales

FinanceLogistics

Supply ChainSustainabilityCompliance

Partners

More than 1M suppliers in more than 190 countries around the world  

Transact with suppliers – the Network handles over $460 billion per year in commerce  

Reduce supply costs – customers save a combined total of $82M daily

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Simplifying Business

BusinessOutcomes

Hyper-personalizeCustomer Experience

Plan & optimizeResources in Real-time

Engage & empowerWorkforce of the Future

Harness the intelligence ofNetworked Economy

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Run simple.

Our vision for enterprise technology and business

SAP strategy

Run simple. = Cloud + SAP HANA

SAP Cloud powered by SAP HANA

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“I said SIMPLE, I didn’t sayEASY!…”

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Building complete solutions that best meet your needs

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For 11 lines of business For millions of SMEsFor 25 industries For consumers

Services and supportIndustry expertise

UX

Design thinkingValue engineering

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SO YOU CAN DO ANYTHING

SIMPLIFY EVERYTHING

THE WAY FORWARD IS SIMPLE

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Run simple.

Thank you

Timo.Elliott@sap.com @timoelliott