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IoT & Digital Supply Chain
Franck Chelly
Kamel El Ghossaini
Dubai, March, 2017
Internal© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 2
Connected
ProductsConnected
AssetsConnected
PeopleConnected
MarketsConnected
FleetConnected
Infrastructure
Business Drivers
Major shifts in the economy
will further accelerate the
Digital Transformation
• Customer Experience
• Distributed Manufacturing
• Networked Economy
• Urbanization
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 3Analyst
‘Better Outcomes’ – The real reason for IoT projects
Optimized
Productivity
Improved
TurnaroundsLess Waste
Lower cost Increased UptimeNew Products &
Services
New Revenue Faster DeliveriesUsage – Based
Pricing
Greater Capacity Better Efficiency New Business Models
Connected
Products
Connected
Assets
Connected
People
Connected
Markets
Connected
Fleet
Connected
Infrastructure
• New Business Models
• New Business Processes
• New Work Environments
The Digital Supply Chain needs to be
connected to “everything”
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Internal© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 5
Connected Assets
Source: Kaeser Kompressoren
Source: TrenItalia
“Reduce maintenance costs by 8 to 10% –
Increase asset utilization”
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 6Analyst
Connected Assets – Manufacturing Execution
Source: Harley Davidson
Reduced production lead time for
customized motorbikes from 21-days
cycle to 6 hours,
Cost -7% & Net Margin +19%
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 7Analyst
SAP Leonardo Application Portfolio
Connected
Markets
Connected
Infrastructure
Connected
Products
Product & Project Network*
Engineering Control Center
Product Lifecycle Costing
Ariba Sourcing
* future scope
Product Insights
Connected
AssetsConnected
Fleet
Connected
People
Connected Goods
IBP for response & supply
Hybris Billing
Goods & Equipment
Supply Chain Control Tower
Track & Trace*
Ariba Advanced Supply
Chain Automation
Supply Networks
Asset Intelligence Network
Predictive Maintenance
Work Manager
Ariba Advanced Supply
Chain Automation
Fixed Asset Insights
Manufacturing Execution
Manufacturing Integration
& Intelligence
Plant Connectivity
Manufacturing Execution
Manufacturing Integration &
Intelligence
Global Batch Traceability
Track & Trace*
Distributed Manufacturing*
Manufacturing Networks
Vehicle Insights
Predictive Maintenance
Asset Intelligence Network
Mobile Asset Insights
Transportation Safety*
Connected Parking
EHS dangerous goods
Logistics Safety
Track & Trace*
Yard Logistics
Warehouse Management
Networked Logistics Hub
Vehicle Networks
Logistics Networks
Real-Estate Cockpit
Plant Maintenance
Energy Management*
Ariba Procurement
Building Insights
Project Management
Track & Trace
Yard Logistics
Construction
Predictive Maintenance
Asset Intelligence Network
Manufacturing Integration &
Intelligence
Energy Grids
Customer Activity Repository
Connected Goods
Connected Marketing
Market Insights
Vehicle Insights
Predictive Maintenance
Connected Agribusiness*
Rural Areas
Networked Logistics Hub
(Ports)
Smart Traffic
Connected Parking
Urban Areas
Smart Operations Room*
Knowledge Workspace*
SAP JAM
People and Work
Connected Goods
Connected Patient*
People and Health
Connected Homes*
(Insurance)
People and Homes
• Connected Goods
• Vehicle Insights
• Predictive Maintenance & Asset Intelligence Network
SAP Leonardo Jump Start Program
3 Steps to Outcomes
Explore Prototype Implement
Executive IoT Design
Thinking Session
Rapid IoT Prototyping
Workshop
Sprint Zero –
Realizing Pilot
Understand the impact
of IoT on the business
Discuss core business
processes and business
models
Identify area for
innovation
Narrow down on one
core business process
Redesign business
process/model on
real data
Rapid prototype to
demonstrate vision
Realize former prototype
as live pilot project
Integrate into one
business scenario
Provide software as a
service for limited time
Define IoT roadmap
for next processes
1 DAY 1 WEEK 3 MONTHS
3 STEPS TO OUTCOMES
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Internal© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 9
SAP Vehicle Insights - Wide Range of Use case
Remote Vehicle
DiagnosticsCar Fleets Connected
Vans/Logistics
Digital Farming Future Mobility Commercial Fleets
Improve fleet utilization,
efficiency and transportation
services
Improve fleet productivity
& transparency
100% Improvement on
Speed of information
retrieval & reliability of
data send to ERP
Increase Forklift operator
safety and real time insights
Walmart vs Amazon • Walmart is still ahead in overall
sales with $482 billion, more
than four times as much as
Amazon's revenue.
• Walmart's online sales were
$13.7 billion in 2015, compared
with Amazon's $107 billion.
• Amazon's market value is now
$356 billion, compared with
Walmart's $298 billion
Former Walmart CEO Mike Duke said in 2012 that his biggest regret as CEO was not investing
more in technology to better compete with Amazon. "I wish we had moved faster. We've proven
ourselves to be successful in many areas, and I simply wonder why we didn't move more
quickly. This is especially true for e-commerce," Duke said at the time.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11
Connected Warehouse ManagementBuilt-in process automation & validation
Extended
Warehouse
Management
Connected Devices
• Mobile Devices
• RFID Scanners
• Voice Recognition Headsets
• Augmented Reality
• Pagers & Phones
• Label Printers
• Scales
Connected Automation
• Conveyors
• Lifts
• Robots
• Picking Systems
• Manufacturing Execution
Systems
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12
Connected Transportation ManagementReal-time Transportation Planning
Transportation
ManagementReal-Time Freight
& Truck Visibility
• Transportation demand
• Fleet usage / availability
• Nearby resources
(actual truck positions &
planned route)
• Driver availability
Real-Time
Adaptive Planning
• Drag-&-Drop-based
Re-planning
• Load Optimization
• Pallet Building
Real-time Driver
Communication
• Tour update
• Event reporting
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13
Track & Trace
SAP Event Management (EM)
SAP Object Event Repository (OER)
SAP TM Notifier (Mobile App.)
SAP Auto-ID Infrastructure
Process tracking
• Orders, deliveries, units,
parcels
• Vehicles, containers…
o End-to-end event tracking
o Exception reporting and
handling
Condition monitoring
• Secured transportation
(seals / locks)
• Cold chain (temperature)
o In-transit monitoring
o Life-cycle tracking and analysis
Connected Track and TraceAuto-ID automation, real-time tracking, monitoring, exception handling and analysis
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 14Analyst
100+ SAP Customers…deploying IoT
Real time costing increases
efficiency Energy apps lower
spend based on power contracts
Digital operations - increased
performance (-7% cost, +19%
net margin, +25% dividend)
Industrie 4.0 Award Winner
99.5% First Pass Yield
100% Track and Trace
“Made in China 2025” pilot project –
MES on HANA – Increased production
by 25% - Integrated to thousands of
sensors and equipment
Real time operational
surveillance of well
performance on HANA
Up to 30% improvements
in reporting speed
8-10% reduction in
maintenance costs
Optimized maintenance 3 –
5% increase equipment and
production efficiency
Innovation in Insurance
Telematics
Improve fleet utilization,
efficiency and transportation
services
Higher customer loyalty
and satisfaction
Increased transaction volumes
through new sales channels
Increased adoption of
mobile app
Increased safety and security
in truck parking
Improved service levels, higher
efficiency and productivity
Building innovative applications
based on the data of connected trailers
Improve service levels
for customers & new
business model
Improve fleet productivity
& transparency
Visibility into customer’s
fitness footprint and workout
habits using IOT. Engage
Better and Grow revenue
100% Improvement on
Speed of information
retrieval & reliability of
data send to ERP
15% Reduction in driver
turnover in the first year
Improved Talent development
and driver safety
Better Patient Engagement –
Diabetes connected kit
Better customer service,
reduce carbon footprint
and pay per use model
Efficient Supply chain
& cost reduction with
predictive for Container
Repositioning
100% Flood Reduction
Increase Forklift operator
safety and real time insights
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 15Analyst
“SAP will offer real-time technology to enable organizers and exhibitors to analyze instantly data that
predicts visitor trends and personalizes each individual’s experience.”
Expo 2020 Dubai Partners with SAP to Create ‘Made-For-You’
Experience for Millions of Visitors
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 19Analyst
Expo 2020 Dubai Partners with SAP to Create ‘Made-For-You’
Experience for Millions of Visitors
• 100,000 Towels
• 200 Liters of Soap
50,000 People/Visits
What about :
Transportation?
Drinking
Water?
Logistics of
exhibited
products?
25,000,000 Visits
• 50,000,000 Towels
• 100,000 Liters of Soap
Parking?Food?
IoT & Digital Supply Chain
Dubai, March, 2017
THANK YOU