simplify the business transformation journey sap one …€¦ · 16/06/2015 · simplify the...

Simplify the Business Transformation journey –

SAP ONE ServiceMarc Chan | VP, Head of SAP ONE Service – South China & Hong Kong | SAP Global Service & Support

June 16, 2015

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2Internal

Agenda

15:30 – 15:45 Simplify your Business Transformation journey – SAP ONE Service

Marc Chan

15:45 – 16:25 Transform to Intelligent Manufacturing with Industry 4.0

Ian Ryan, Hayden Zheng

16:25 – 17:00 Enhance Customer Experience through Omni-Channel

Grace Chen, Dake Liu

17:00 – 17:30 Best Practice in Financial Services – Banking and Insurance

Raymond Ho, Carlos Zhou

17:30 – 18:00 Round Table Discussion- Table 1: Intelligent Manufacturing

- Table 2: Supply Chain

- Table 3: E-Commence

- Table 4: Banking and Insurance


SAP MISSION

“Provide the end to end, wall to wall platform to

rapidly prototype new business models in new

business networks”

LEVERAGE CLOUD AS THE ACCELERATOR

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 3

SAP ONE Service

End to End Software Solution Provider of Choice


40% executives worry that their organizations will not

keep pace with technology change and lose their

competitive edge.– McKinsey study, 2013”

“

Drive business

innovation

Keep the

lights on

Technology Stackof multiple layers of hardware & software

User Experiencethe ability to engage customers and users

Drive business

innovation

Keep the

lights on

Consumptionof new technologies to differentiate

Forrester IT Survey, 2013

Complexity built up over decades hampers the ability to innovate – Radical

simplification is needed to unlock the potential.


From Solutions to Best Practices and Model Companies

Industry – specific

functionality can be

configured and adapted

Business Suite SAP Best Practice

Pre-configured

processes and process

steps.All required Building

Blocks to run an

industry vertical

end-to-end.

Rapid Deployment

Solutions

Pre-configured scenarios.

Content to accelerate

project. Includes Services.

Are the ultimate form of standardization/sophistication for a specific LoB or industry solution

Provide a ready-to-go E2E system landscape built on Best practice or existing processes

Provide a comprehensive baseline for Rapid Prototyping

Provide customer specific cloud for demo and implementation quick start

Simplify and harmonize implementations in target segments

Model Companies

Existing Customer Environment

Configured & enhanced processes grown

over the application lifecycle

Model Company


Model Companies at a glance

Solution Name Discrete Consumer

Energy, Oil & Gas,

Chemicals, Natural

Resources

Services Public Services Financial Service

Mo

de

l C

om

pa

ny S

olu

tion

(Lo

BF

ocu

s)

Manufacturing Execution √ n/a

PLM √ √ √ n/a

Logistics Execution √ √ √ √ (3PL) n/a

Global Batch Traceability √ √ √ n/a

Other Processes Leverage existing accelerators in delivery (Best Practices, RDS, Fast Start, Discovery Drive)

Mo

de

l C

om

pa

ny S

olu

tion

(In

du

str

y F

ocu

s)

Banking

n/a

√

Insurance √

Automotive Suppliers √

n/aAutomotive Retail √

Other industry segments Leverage existing accelerators: Best Practices, RDS, Fast Start, Discovery Drive n/a


New Business Model in New Business NetworksSupported by end-to-end, wall-to-wall business solutions powered by SAP HANA

E-Commerce

Buy & Sell

B2C

B2B

B2B2C

C2C

E2E

Logistics

EWM

TM

EM

Tracing &Tracking

Manufacturing

SCM

IOT

M2M

B(uild)2C

PLM

Finance

Cash

Profit

Risk

Loans

Deposits

Payments

HighTech

Retail/Fashion

HealthCare

Logistic Services

Financial Services

Real Estate

Mills & Paper

Engineering & Construction

Automotive

Utilities

Oil & Gas


Every 6 months a

new “Release” with

tangible benefits (KPI

measured) for each LoB

Innovation

Control Center

(ICC)

Operations

Control Center

(OCC)

Mission

Control Center

(MCC)

CLOUD

The Collaborative Model: SAP Is EmbeddedImplementations to Operations to Continuous Improvement

Build SAP Like

a Factory

Run SAP Like

a Factory

• Support new Business Models

• (Co-)Manage Innovation within Innovation Budget

• Prototyping and Piloting with LOB Heads

• End User Efficiency

• Implement “Always connected and 100%

integrated Enterprise”

• Simplify System Landscape

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 9Internal© 2015 SAP SE or an SAP affiliate company. All rights reserved. 9

SAP MaxAttention Enables Re-platforming

Innovation

SERVICES

SOFTWARE

HARDWARE

SAP MaxAttentionfor all services to provide the

end to end industry business solution

powered by HANA

Removing Business Complexity

Past Now and

Tomorrow

Transform to Intelligent Manufacturing with

Industry 4.0Ian Ryan | SAP Global Service & Support

June 16, 2015

Introduction and Industry TrendsIndustry 4.0 and Connected Manufacturing

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 12Internal 1212Customer© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Trends in ManufacturingDecrease in production volume – increase in production variety

Consumer Demand for more variety and customized products

» Manufacturers need to be able to handle high mix low volume production

» Ability to ramp up to high volume production – accommodate market demands

Product life spans are getting shorter

» Manufacturers need to respond very quickly to market requirements

» Ability to react to changes more frequently

Business Volatility

» Manufacturers need to supply to a larger more diverse customer base

» Avoid being tied to a few major customers

This drives the need for flexible manufacturing

» Reduce set up / change over times – accommodate more orders

» Capacity flexibility – Ability to ramp up volume on demand

» Modular & scalable – Quick assembly line adaption / conversion

» Reduced complexity

» Reusable & re-deployable – rapidly reconfigure and reuse systems for a new product

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 13Internal© 2015 SAP SE or an SAP affiliate company. All rights reserved. 13Customer

Industrie 4.0 – What is it?

“Industry is on the threshold of the fourth industrial revolution.

Driven by the Internet, the real and virtual worlds are growing closer and closer together

to form the Internet of Things.

Industrial production of the future will be characterized by the strong individualization of

products under the conditions of highly flexible (large series) production, the extensive

integration of customers and business partners in business and value-added

processes, and the linking of production and high-quality services leading to so-called

hybrid products.

German industry now has the opportunity to actively shape the fourth industrial

revolution. We want to support this process with the "Industry 4.0" forward-looking

project.”German Federal Ministry of Education and Research


Industrie 4.0 – What is it?

…

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 15Internal© 2014 SAP AG. All rights reserved. 1515© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Connected Manufacturing - 5 Scenarios of “Connectedness”

1

ERP

MES

SCADA

MachineLayer

Manufacturing

Company

5 Scenarios:

2

2. Machine to Machine

Autonomous machines

1

1. Shop floor to Top floor

Intra company vertical integration

E-Commerce

Consumer

3

3. eCommerce Integration

Direct integration of online

configuratiors

3

Service Provider

Machine Cloud

5. Machine Cloud

- Predictive maintenance

- Predictive quality

5

5

Quality Operator

5

Supplier

4. Manufacturing Collaboration

- Visibility

- Genealogy

- Quality

- Kanban / Direct replenishment

Mfg Collaboration4

4


“We are convinced that manufacturing in the digital world requires a completely new approach how to run the shop floor. Therefore our solution is much more connected and intelligent in order to empower production workers, re-invent flexibly manufacturing processes and to increase responsiveness. We build Industry 4.0."

Bernd Leukert

Member of the Executive Board SAP SE

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 17Internal© 2014 SAP AG. All rights reserved. 1717

SAP Manufacturing Integration and IntelligenceOverview of the Strategic Platform for the Connected Plant

Business Logic Services

Visualization

Quality Engine

KPIs/Metrics/Alerts

Data Services

Manufacturing Integration & Intelligence

Composition

Environment

PLAN MAKE DELIVER

ERP SCM PLM

LIMS/Inspection/

Equipment Testing

MESSCADA/HMI

Plant Data

Collection

Wireless

IntegrationEnvironmental

Building Management

Plant Historian

Plant DB

DCS/PLC

via OPC

INTEGRATION

Distributor/

CustomersSupplier/Contract

Manufacturer

Performance

Management Worker UIs

Plant Connectivity

Manufacturing

Analytics

ERP Business Process

Simplification


Ma

nu

factu

rin

g F

un

cti

on

ali

ties

SAP Manufacturing Execution (ME)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


Summary

• Industry 4.0 and IoT are creating the platform for innovation in manufacturing

• SAP solutions integrates seamless the shop floor to the top floor.

• Shop floor becomes part of the extended supply chain, integrated in business

networks.

• SAP simplifies operational and logistical complexity

• Improved operational insight and response cycle-time with IoT process

automation

• Ensures regulatory and compliance standards

Customer Reference CaseBYD – Build Your Dreams


BYD Industry Parks in China


BYD Builds a Smart Factory with Help from the

Innovation Control Center and SAP® AGS

CompanyBYD Company Limited

HeadquartersShenzhen, China

IndustryHigh Tech

Products and ServicesBatteries; handset components and

assembly; traditional, solar-power, and

electric vehicles; energy storage and

power plants; light-emitting diodes; and

more

Web Site

www.byd.com.cn

Partner

SAP® Active Global Support organization

Objectives Revamp IT infrastructure to keep pace with rapid company

expansion

Enable major clients to monitor production of their orders

Support real-time data sharing

Why SAP Software that is used by major clients of BYD Company Limited,

allowing BYD to integrate with client software for total manufacturing and logistic transparency

Software support for a highly effective manufacturing platform to establish transparent, process-oriented production control

SAP MaxAttention™ services and an innovation control center delivered by the SAP Active Global Support (SAP AGS) organization to help establish implementation best practices

Support for real-time traceability of manufacturing processes

Benefits Closer adherence to the intended process flow Transparent management for the entire order and production

process Leaner production cycle thanks to the innovation control center Real-time visibility of production data for clients Improvement in business processes by linking business units

“SAP helped us build an intelligent factory based on an advanced and

efficient production management system.”

Qiu Yan, CIO, BYD Company Limited

FacilitatedProduction-line logistics and distribution

FewerManual errors

BetterInventory turnover and on-time delivery

Studio SAP I 31985enUS (14/07). This content is approved by the customer and may not be altered under any circumstances.


SAP ME and MII Solution in BYD ERP integration to ME Production Order Release to ME Material Consumption/Attrition

Trends Monitoring in ME Order Status Report to ERP

Material Batch and Barcode Management

Material Picking, Return and Scrap

Shop Floor Inventory Management

Production Order Confirmation

Key Component Traceability

WIP Monitoring Material Status

Monitoring Input-Output Analysis Production Efficiency

Analysis Quality Assurance Machine Efficiency

Analysis Defective Rate

Analysis Order Completion

Status Tracking

Machine Management Machine Integration and

Automation OEE Analysis Quality Inspection and Data Collection.

SPC Analysis Exception Alert

Manufacturing Resource Management

Material, Material Group, BOM Synchronization

Routing/Operation Synchronization

User, Shift, Plant Calendar Maintenance

User Manual Quality NC Code Maintenance

Document Printing and Transfer Process Control - Start, Complete, Split,

Merge, Queue time, Cycle time Operator Training

ME and MII Platform


Project Background and Scope

Project Background

To support BYD to build a brand new intelligent production line for its key customer, SAP AGS delivered a project in 2013

and helped BYD integrate a new IT platform to BYD’s manufacturing, order management, supply chain management and EDI

business(B2C, B2B).

Project Benefits

With SAP ERP 6.06 (mainly in SD/EDI), incorporate an Order Management platform to enhance the core-competitiveness in

B2B/B2C business are and improve the customer satisfaction.

With SAP EWM 7.02 (mainly in FG management), increase the inventory accuracy, turn overate and order fulfillment capacity

with a more powerful warehouse management system and logistic execution system.

With SAP ME6.0 (MII, PCo), implement an highly integrated manufacturing execution system of principles, operating

practices, and elements that drive the relentless pursuit of business excellence through waste identification, elimination and

prevention, improve the product quality and reduce unexpected production cost from a lean manufacturing philosophy.

Main Scope

SAP ERP EHP6 Upgrade and Unicode System Conversion

SAP ERP Direct Sales and Shipment

SAP ERP Hub Sales and Shipment

SAP EWM FG Management(Inbound/Outbound/Shipment)

ME/MII Shop Floor Control(SMT/MLB/FATP/EndCustomer-System Integration)

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 26Internal© 2014 SAP AG. All rights reserved. 2626© 2015 SAP SE or an SAP affiliate company. All rights reserved.

BYD Project System Cutover

Production

Planning

ERP6.0

Standalone

MPS Production Order Confirmation FGI Reporting

Order to Cash Order Processing Outbound Delivery Billing Request Order SettlementGoods Return &

RMA Handling

Material

ManagementFG Inventory Management

Warehouse

Management

3rd Party

WMS

StandaloneLabel Printing

Manufacturing

Execution

ME5.25

StandaloneNA

Production

Planning

ERP6.0

Integrated

MPS MRPProduction

integrate with MES

Order Confirmation

integrate with MES

FGI Reporting

integrate with MES

Order to CashOrder Management

with EDI

Outbound Delivery and

Load ManagementBilling Request Order Settlement

Goods Return

integrate with EWM

& RMA integrate

with MES

Material

ManagementFG Inventory Management with Serial Number and integrate with MES/EWM

Warehouse

Management

EWM7.25

IntegratedFG Inbound/Outbound/Delivery/Shipment Management and Document Printing

with integrate to ERP

Manufacturing

Execution

ME6.0/MII/PCo

IntegratedScilla specific manufacturing process and management

with integrate to ERP and Shopfloor Machine

New/Highly

Improved

Befo

re G

LA

fter G

L


High Level E2E Business Process of BYD Project

SAP ERP 6.06Create Sales Order SAP EWM 7.02

Create Delivery

Create Billing

EDI850

EDI940Link SO with DN

Create Outbound Delivery

Request


Order


& PGI

Create PIR Run MRP

Create PO

Release Prod. OrderPost GR for Raw and Semi

Finished Goods

EDI850COPO

EDI810

Create Prod. Order

Create Inbound Delivery

Create Inbound notification

Create Inbound Delivery

Count GR number

(Z)

Post GR for Finished

Goods

Create Putaway WT

Confirm Putaway WT

Packing work center

Post GR for finished

Goods

Production Order

Confirmation & goods

movement

Post Goods Issue

qRFC

qRFC

qRFC

qRFC

SAP ME 6.0

Create Shop Order

Release Shop Order

Start Production

Operations

Complete Production

Operations

MII 12.2

Receive floor stockTransfer floor stock

component to prod. Storage

location

PCo

Pro

du

ctio

n L

ine

-m

ach

ines

Trading

PartnerCreate Wave and Release

Wave

Create WT & Confirm WTHub Periodic/End Customer

Payment Settlement

Prod. Order Cost

Settlement

Fcst by Mail

EDI856

EDI945

EDI140z

EDI855

Send Inventory StatusEDI846

Consolidate Deliveries into

shipment

Carrier

Load Request

Load Request - XML

Consolidated Load Request - XML

Trans-in Files


BYD Production Line Overview

SMT

Component Load

AOI Test PCBA Split OQC Test

SMT Repair WSRepair Repair

Repair

PackingPackaging Palletization

SFG goes to FATP for Final Assembly

Packaging and Palletization

* SMT : Surface Mount Technology

* FATP: Final Assembly to Packing

FATP

MLB AssemblyDongle

AssemblyNoise Check

Appearance Inspection

EUT Sampling

Install Accessories

1/15 Sampling

FATP Repair WS

RepairRepair

Repair


Routing Maintenance Board in ME


Production Operation Dashboard in ME- Operation Capacity Status Overview


Semi-FG Stock Report in MII


Machine and Equipment Monitoring through MII

Machine Parameter

Real Time Monitor

Enhance customer experience through Omni-

ChannelGrace Chen and Dake Liu | SAP Global Service & Support

June 16, 2015


85%Single Channel

7%No Channel

Cu

sto

mer

Inti

mac

y a

nd

En

gag

em

en

t“Inform Me”

“I can find information

on products via

multiple channels”

“Make Buying Easy”

“I can choose where

and how I buy”

“Know Me, Advise Me &

Let Me Choose”

“My retailer knows my

preferences, provides

valuable advise and let’s

me tailor my entire

shopping and delivery

experience.”

Customer ExpectationsRetail Reality

8%Omni - Channel

Why Customer Experience is Different

© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Source: SAP Performance Benchmarking – Outside-In Analysis of Food and Drug Retailers in 2013 NRF Top 250 Global Retailers List


Expected Digital Disruption per Industry

Source: Interview with 1.200 Executives - .Forrester “The Digital Business Imperative”, 2014

86% Insurance 83%Education and

social services83%

Banking and

financial services82%

Government and

non-profit

81%

Media,

entertainment, and

leisure (excluding

travel)

81%Retail and

wholesale78%

Tele-

communications77%

Professional and

business services

Utilities HealthcareTransportation and

travel

Consumer

packaged goods77% 76% 74% 72%

Technology

products

Pharmaceuticals

and medical

equipment

Oil, gas, mining, and

chemicals

Construction and

engineering70% 70% 65% 63%

Industrial products60%Massively disrupted

Moderately disrupted

Somewhat disrupted



Traditional Retailors’ Customer Centric Transformation Internet+ Strategy based on Established Strengths

Source: Online to Offline – What is in For Traditional Retailers, Value Partners July 2014

Traffic: Online to drive traffic toward physical stores

Insights: Online to better collect insights and data as a

mean to raise customer experiences at physical stores

Effectiveness: Online to raise sales effectiveness by

complimenting or replacing existing functions at the

physical store

Range: Online to expand geographical and product

coverage and availability



Operationalize Internet+ Strategy with SAP Digital Platform

Seamless customer experience

Integrated business planning, execution

and fulfillment

Increased vendor profitability and

collaborate

Intelligence based decision making

Deeper customer insights

real-time global inventory visibility

Customer Engagement and Commerce

Merchandise Planning Marketing Planning

Core Merchandising

Real-Time Customer Insight

Supply Chain Planning Supply Chain Execution

Sourcing, Buying, Private Label

Mobile First Experience

Everything Powered by SAP HANA

Every

thin

g a

vaila

ble

via

Clo

ud

Inte

gra

ted

Real-

tim

e P

rocesses



Data-based Business Model

The User with his Diverse Processes at the Centre...

…in his respective role as

employee, consumer, citizen,

patient, tourist...

Use of Smart Data enables the

demand-oriented and context-

specific combination of services

Industrial convergence:

Dissolution of traditional

industry boundaries

Data-based business models based

on

new digital infrastructures


39

YO

UR

BE

NE

FIT

S

★ Accelerate Time-to-Value

Leverage latest SAP innovations faster

★ Reduce Service-to-Software Ratio

Only implement what’s necessary

★ Reduce Total Cost of Operations

To meet efficiency needs and engineering

skills constraints

★ Co-Engineer with SAP

Translate creative ideas into

new business models

★ Re-Platform to Simplify

Build on the sustainable platform

★ Ensure Business Continuity

24x7 schedule in a globalized world

★ Derive Value Every Day

Maximize the value of your investment

End-to-End Transformation

Solution

New BusinessModels

SAPTechnology

SAPMaxAttention

+ Unmatched Expertise from SAP!

Transformation & Innovate with SAP Next Generation MaxAttention


Shopin Case Study


Shopin – Overview

- Founded in 2000, first discounted product chain store in mainland China, with 11 stores, 100,000 square meter shopping area

- Online channels: shopin.net, T-mall flagship store, WeChat public ID.

- 2008 Shopin start to PDA/PAD as the selling tool holding by shop assistant, it is also the time when they manage the product

to the level of SKU – digitalize the product

- 2009 the first one who started using real time inventory query and execute corresponding store delivery, unified pricing across

online to offline

- 2012 first offline retailer to use AliPay

- 2013 first retailer to use WeChat pay

- 2014 digitalize all store SKU, using online shopping cart in physical store


Shopin


Experience 1 – shopping without wallet

customer

See QR code

Product selection

Counter generate QR for product

Scan to place order

Wechatpay

Counter assist pickup

Counter generate payment QR

paymentCounter help pickup

Counter place order

Continue to buy online


Experience 2 –be always with you

Select product

Product A

Product B

Product C

Product D

Product E

Product F

Chose 2 item

Hesitate on the other 4customer

Pay and go

Shopping cart will be cleared next noon

Added to cart by scanning or by PAD

Pay @home


Experience 3 – no queue, no close

24 * 7

Shopin.net Tmall flagship store

Wechat store, product recommendation & all store search

Select item Wait for sales ticket

Queue @cashier Wait to pay Pick up @ counter

Select & scan

Pay via phone Pick up

Traditional retailer

Shopin

Bus stopmetronewspaperElevatorschoolcafebrochure

Mobile product via QR code

customer


Experience 4 – socialize the shopping experience

Select itemMy friend may like

Scan via wechat

Share with my friend

Friend pay via wechat

Select item Maybe good on my dad

Scan via wechat

Type in the address

Click to mail to my dad

customer


Experience 5 – multi-dimension service

Claim for return

Mail return

refund

Find counter assistant Show order in the

phone

Browse order on wechat/webshop

Online help Talk to service

customer Return& refund

Browse order on wechat/webshop


Shopin OMS Shopin SSD

2012- 2013Shopin’s Approach with SAP

SAP ERP for Retail

Article Data Inventory Data

Financial Data

Paid Order Data

Article Data governance to

SKU level

(model + color + size)

Centrally managed inventory

data recording all the

inventory changes

Un-paid Order

Paid Order

Enriched Article Data

Inventory Data

Online StoreIn-Store PAD

Multi-Channel Frontend

Centralized Backend

Orchestration Platform


Extracted Technical Architecture


Centralized Backend


POS Online store Mobile device

Load Balance

File based channel

Middleware Queuing

Bit stream based channel

Order HandlingOrder - Inventory

integrationPayment Integration

Order ManagementInventory & Catalog Cache

(memory database)

Product CatalogSellable Inventory Data

Cache

Inventory Data

Synchronization

Catalog Data

Synchronization

Order Data

Synchronization

SAP PIMiddleware

Payment Data

Synchronization

Article, Price Master

Data

Centralized Inventory

Data

Unified Order and

Subsequent

Documents

Financial Postings &

Consolidation

Integration to other

systems

SAP ERP


SAP ERP for Retail

Inventory

Data& BO


Challenge on traditional database

Un-paid Order

Paid Order


Inventory Data

webIn-store PAD wechat

MD（article、price）

order

inv

报表&分

析

SAP BW & BO

Oracle

DB

Reporting lagReaction not in

time


Centralized Backend


Article

Data

Financial

Data

Paid Order Data


& BO


SAP Suite on HANA

2014 platform innovation

SAP ERP for Retail

报表&分

析

SAP BW & BO

Oracle

DB

Real-time reporting

Rapid business decision

Simplified process reaction


Centralized Backend

Orchestration Platform Un-paid Order

Paid Order


Inventory Data

Inventory

Data

Article

Data

Financial

Data

Paid Order Data

webIn-store PAD wechat

MD（article、price）

order

inv

Suite on HANA – New platform

New value


Suite on HANA – platform for future business optimization

Suite on HANA support continuous business optimization and innovation

Big data platform HANA stores SAP and non-SAP data, especially data from diverse channels, the

prerequisite for innovative big data analysis in the future

Business innovation Support business innovation, technically support 'real time’ operating Benefit from future SAP product base on HANA

Fast & Accurate

Simple Eco


Business value – fast & accurate

“we constantly hope to have a look at the cost analysis on every single

transaction, and maybe analysis against vendor, MC etc. to check the

profitability, before, we can only do that after MEC, now those IT guys told

me that we already have such platform to do, I look forward to see how this

platform would generate great convenience for us.

“ we negotiate the contract with our vendors every 3 months, sometimes

we even adjust the contracts several times within 3 months, we hope to

see the profitability of every article the vendor supplied so that we refine

the contract; now, the new platform has allowed us to inspect the vendor

in different time dimension, and help us build robust confidence when

negotiating with vendors

“we can see the sales and inventory in real time manner after we upgrade

to HANA, and it help us to make decision really in great advance”

“before, we check monthly report by clicking “execute” in ERP, and walk

away do other job; now we wait almost no time before we see the report”


Business value – simple

SoH unified business execution and business analysis, simplified the fragmented business synergies

Planning

dep.

procurement

Store operation

Contract

SAP BW

（MAP）

SAP ERP

article/MC plan

PO

vendor/counter

Feedback stock

Article &

inventory

(daily

extraction）

Feedback vendor

registration

Feedback vendor

registration

Feedback stock

Vendor

invitation

Plan,

Check,

Adjust

SoH before migration：

Execution detached

from business plan,

rather long response

cycle；

Business synergy

depends on offline

communication, low

efficiency;


Business value – simple

SoHSoH unified business execution and business analysis, simplified the fragmented business synergies

SAP BW

（MAP）SAP ERP on

HANA

Planning

dep Store operation

contract

Procurement

Plan, Check,

Adjust

article/MC plan

PO

vendor/

counter

Unified data

source

Vendor stock

stock

vendor

Vendor/stock

SoH after migration：

Business planning and

execution are performed

in one system, real time

and accurate；

Minimize the offline

communication, every

single operation will be

reflect to all business

department；


Business value – more economy

SoH lower the TCO of Shopin’s IT infrastructure and system maintenance

Value description

Reduce IT

infrastructure cost

Eliminate data synchronization and aggregation between BW and ERP

Significant data contraction rate provided by HANA

Reduce IT operation

cost

Provided solid technical platform for future business innovation

Avoided costly potential reimplementation and migration

Avoid data lagging Enhance report performance when month end closing

Establish daily real time reporting strength

Enhance user

satisfaction

Reporting performance

Allow data adjustment in real time manner

Department store


offline online

O2O

Department store

Supermarket

E-commerce

vendor

counter

own

countershelf DC outlet

vendor

stock

Same customer! Everywhere!


Order management

Place order Order management Order fulfillment

1.web

2. mobile

3. Wechat store

4. APP

5. Kiosk

6. Third party platform

7. PAD

8. POS

onlin

eo

ffline

Store orderIn-range fast delivery

Split order

Distribute order

exchange order

Return order

Exception handling

Store delivery

Store collect & delivery

DC collect & delivery

Store pick up

Hybris OMS

Chinese Pharmaceutical


Direct sale

WMS

hybris

BIData Hub

Third party Payment Mobile apprecharge

withdraw

Members/Sales rep

Ariticle/bundle

price

Workstation registration

outbound inbound

Bonus settlement system

ECC

Workstation

order

Payment

DC

inventory

RDC

inventory

E-wallet

SD MMArticle

master

Customer

master

Best Practices in Financial Services –

CMBC Core Banking Case StudyCarlos Zhou | SAP Global Service & Support

June 16, 2015


China Minsheng Bank Corporation (CMBC) is the first bank in China to be owned

mostly by non-government enterprises.

With years of hard work, CMBC successfully gained high visibility and influence.

Its initial capital equity was 1.38 billion when it was established in 1996. By 2013,

CMBC's asset size has reached 3.2 trillion with an amazing year after-tax profit

being 42.3 billion RMB. Obviously it has become a highly competitive listed bank

in China.

Especially after 2007, CMBC made primary research on the internationalization

and diversification. Ultimately CMBC were listed on the stock market both in Hong

Kong and Mainland China. What's more, CMBC has transformed itself from a

single business bank to a multi-industry, cross-regional bank group which can

provide integrated financial services such like rental business and funds

business etc.

CMBC Introduction

System landscape


CMBC New Core Banking System Landscape

SLD Solution Manager

PI BPM EP CUA BO CPS

MDS FDM GLECCSub-Ledger

BP

DM

BPPProduction Systems

Integration LayerPIB PES

CMP

NPS UP

ELS

BP

R.LM

R.CM

R.FM

C.LM

RM

BP

C.CM

C.FM

Teller (xBank) E-Bank LOS ATM POSChannels

Integration

Transactional

Banking

Analytical

Banking

Technical

Layer

APPs UI

3rd Party

Systems

Other Transaction Systems Deposit Loans

E-Port

Silver Tax & East Port

National Treasury

Silver Tax & East Port

Paper Gold Foreign Exchange

…

EMP

IBM, etc.

SAP, CMBC, etc.

CMBC, etc.

Database

OS

Hardware P780, P750, P570

AIX 6.1 - 06

DB2 9.7 - HADR 3rd Party Systems

PS702, JS43

VIO

Server

2.2


Business Process example: Cash Withdraw via ATM

BPPATM Security & Guaranty Platform

Log on with card

and PIN numVerify PIN num

Inquiry card and

account

information

Check card status

ZFM_CDM_CARD_STATUS_CHEC

K

Get account information

Z_DM_GET_AC_CREATE_INFO

Update cash box

ZBAPI_MM_GI_OR_SALES

Pro

xy I

mp

lem

en

tatio

n L

aye

r

Se

rvic

e I

mp

lem

en

tatio

n L

aye

r

Ad

ap

ter

Ad

ap

ter

Post payment item for withdrawal

Z_BAPI_PAYMENT_ITEM

Ad

ap

ter

Ad

ap

ter

COMMIT

ZCS_BPP_ACCT_IN_

CARD_QUERY

Postings for

withdraw and

charge

Fee &

Charge

system

Calculate

Charge

ZCS_BPP_PI_2

Update cash

box of ATMZCS_MM_

PAYMENT

SMS Platform

Send out

message

Ad

ap

ter

Check cards status

ZFM_CDM_CARD_STATUS_CHECK

Post payment item for charge

Z_BAPI_PAYMENT_ITEM

Update accumulated amount for BP

Z_DM_CHANGE_ACCUM_AMT

COMMIT

Ad

ap

ter

Z_DM_SENT_SMS

Pro

xy

Imple

menta

tio

n

Layer

Serv

ice

Imple

menta

tio

n

Layer

Pro

xy

Imple

menta

tio

n

Layer

Serv

ice

Imple

menta

tio

n

Layer

Project Go-live


UAT (Aug-Nov 2012)

SIT (May-Jul 2012)

CMBC Core-Banking Project Go-Live Milestones

2012

Jan-Feb

UT

(Nov 2011 – May 2012)

CMBC BPP Project Plan Milestone

Mar-Apr May-Jun Jul-Aug Sep-OctNov-Dec Nov-Dec Jan-Feb

Go-Live Phase(Dec 2012 – May 2013)

20132011

SAP Go-Live Milestone

Mar-

CPS/BOBJ/SolMan

(Mar.25th)

BPM

(May 11th)

BP/CUA/EP

(Aug 25th)

DM (1st Br)/GL

(Dec 8th)

BPP-DM (all)

(May 24th)

CMBC Non-SAP Go-Live Milestone

(main & public systems)

PE/NPS/FDM

(Mar.25th)

PIB/MDS/ECIF

(May 11th)

LM Extension

(Sep 1st)

X-Bank2.0

(Aug 25st)

Note: PE = Router for payment related transactions NPS = Router for non-payment related transactions FDM = Financial Data Mart (Bank Analyzer) PIB = Payment inter bank

MDS = Master Data Storage ECIF = Electronic Customer Information System XBank = Teller system


CMBC DM Go-live Map

Branch Names Branch Number

Business Volume

Cumulative

Business Volume

RED: 1st wave Changchun 1 1.3% 1.3%

ORANGE: 2nd

waveGuangzhou, Shantou

2 7.8% 9.1%

GREEN: 3rd

waveShenyang, Dalian,

Hohhot, Tianjin,

Taiyuan, Xi’an,

Zhengzhou,

Chongqing,

Chengdu, Hefei, Nanchang, Nanning

12 23.7% 32.8%

BLUE: 4th wave Shijiazhuang, Jinan,

Qingdao, Nanjing,

Suzhou, Hangzhou,

Ningbo, Wenzhou,

Fuzhou, Xiamen,

Quanzhou, Changsha, Kunming

13 32.8% 65.6%

YELLOW: 5th

wave

Shanghai, Shenzhen 2 21.7% 87.3%

PINK: 6th wave Headquarter, Beijing, Wuhan,

3 12.7% 100.0%


Success Factors for the final achievement after this painful journey

Concentrating on a clearly defined small scope

Going live “only” with Deposit Management and Business Partner and fairly easy products and

processes made the scope to a manageable. The big bang approach replacing the complete

infrastructure of the bank that was targeted for a very long time would have been not achieved.

Phased Go-Live to minimize risk

To start with BP first and separate the accounts into 6 batches was crucial for the success

CMBC was able to learn from errors and adjust processes before putting more load on the system.

Stable team with consistent support of global experts and of the management team

within all SAP (AGS, IMS, DEV) on all levels.

The very long project phase gave the possibility for intensive thorough testing which

was used by CMBC.

Operation Control Center


Challenges of the new Core Banking System

Significant Data Volume

*Query transactions are NOT included, which is six times larger.

Complex System Landscape

Significantly complex landscape with heavy customization spanning several front end channels,

backend systems and components and integration technologies and interfaces

– xBank, LOS, PIB, PES, NPS, UP, SAP (DM, BP) and other legacy systems

Key business processes spanning cross component boundaries

Strict Regulatory Requirements

All core system suppliers (SAP & non-SAP) MUST meet regulatory requirements by recovering

the business continuity in 30 minutes

The core Banking system of CMBC will serve the nation and will be the most mission critical

component of the production solution landscape

Production down for 30 minutes – report to CBRC

Production down for 1 hour – report to Central Bank of China

Production down for 3 hours – escalate to Vice Premier of State Council, resulting in heavy penalties, fines and potential bank closure

SAP DM Go-live(2012.5) Now(2015.6) In 5 years

Daily transaction* 3M 10M 50M

Accounts 26M 55M 200M


Operations Control Center

Application and Business process Operations

Exceptions in alert inbox

and guided procedures

Monitoring 100% automated

for Mission Critical Support


Process behind Application Operations

Monitor

Proactive real-time

monitoring

Optimize

Optimize excellence of

technical operations

Analyze

Lower mean time to

problem resolution

Notify

Reactive handling of

critical events

ReportProve value to business


CMBC Support – SAP Front office

Embedded SAP Front Office (onsite 24/7, 3 shifts)

CMBC’s Operations Control Center

(Emergency Execution Group)

SAP Global RCA Back Office (24/7)part of MaxAttention

SAP Banking Expert Support (24/7)

DMBPM PIERP CPSDB

•Conducts/continues Root Cause Analysis

•Creates/updates Action Plan within 30 mins

•Provides workaround or permanent fix

•Conducts/continues Root Cause Analysis

•Creates/updates Action Plan within 30 mins

•Provides workaround or permanent fix

BOBJ

•Monitors and processes mails in the SAP@CMBC Front Office Inbox

or answers the “duty phone” landline in SAP room on 7th floor

•Discovers incident in monitors

•Performs Root Cause Analysis

•Helps CMBC to create Prio 1 OSS message before triggering Expert

on call

•Performs/continues Root Cause Analysis

•Creates Action Plan together with RCA Backoffice

•If necessary, triggers next level of Support within SAP

•Provides status updates in regular intervals, e.g. 30 mins

Best Practice

from CMBC project


The “Best Practices” We Got from the CMBC Project

From CMBC project， now SAP DM system can cover

nearly all of the Deposit products from China Banks.

Business Process

Management

Deposit Management System

Central Process Scheduler

Compound Service

Management Solution

The Compound Service solution used in CMBC can

guarantee the completion and data consistency of cross

components transactions. Today, SAP has developed a

product called POL to cover this function.

To meet the 24 x 7, SAP invested heavily to test and

validate the load, involving the IBM Labs. Now, we have

the largest BPM installation, and we are sure that it can

scale and perform.

As the central platform to cover all of the key batch job

processes in CMBC, CPS shown its capability and

proved that it can handle every kind of batch jobs in

Banks.

Best Practices in Financial Services –

Life Insurance Case StudyRaymond Ho | SAP Global Service & Support

June 16, 2015


Agenda

SAP Insurance Solution

Financial Service Trend in Asia Pacific

Rethinking Insurance Business Model

Transforming Insurance

Innovation in Insurance

New Target Market and Industry Opportunity

Creating Agility in Insurance

Internet of Thing (IoT) in insurance

Analytics for Insurance

Best Practice for Insurance

Insurance Runs Better with SAP

• Integrated Risk and Finance Management for insurance

• ONE Service

SAP Insurance Solution


Model Industry Solution for Insurance

Trends in the insurance industry

New Regulation(Solvency II,

IFRS…)

New

Economic

Reality

New

Demographic

Reality

$ € ¥

New

Business

Models

New

customer

behavior

New Products

$

New cost pressures

The insurance industry is facing historic changes in many areas at once

Insurance IT is facing historic changes as well

In-House

Development

Packaged point

solutions

Insurance Suites

70’s 80’s 90’s 2000 2010 2020

Enterprise

Platforms

Insurance IT is evolving from old legacy systems to point solutions and now increasingly to

integrated suites

According to IDC, by 2015, the industry will be spending $5B on standard SW

Handcuffed by their legacy systems - need to invest in mobile, cloud, in-memory

MOST SIGNIFICANT SHIFT IS TO SUITES / PLATFORMS

Cloud

Mainframe Client / Server Web based In-Memory CloudMobility


Ovum forecasts the life insurance sector in Asia-Pacific will see the most rapid growth globally,

expanding at 11.6% CAGR to 2017 and overtaking Europe as the second-largest regional

market.

This growth is due to economic changes (higher in- come levels and greater demand for wealth

protection) and demographic changes (expanding middle age and retirement groups leading to

demand in savings protection as well as health).

To address this growth, insurers in the emerging economies (such as China, Indonesia, Vietnam

and Thailand) need to “RE-PLATFORM” End to End core systems and infrastructure to capture

the strong growth opportunities in the region. Within the newly industrialized countries of Asia-

Pacific, such as South Korea, Singapore, and Taiwan, insurers need to upgrade or replace

existing core systems to support market expansion and develop digital channels to capture the

rapid market growth.


Insurance Industry Growth In APJ


SAP Insurance Solution – Cases Sharing

Re-thinking, transforming to 4C + P + VS

• Insurance Business Model

• Transforming Insurance

• Innovation in Insurance

• New Target Market and Industry Opportunity

Based on analytics to drive and prove the decision

(data collection, reconciliation, transform to KPI,

pre-built best practice)

• Creating Agility in Insurance

• Internet of Thing (IoT) in insurance

• Predictive Analytics for Insurance

• Best Practice for Insurance



What can SAP provide insurers today?

Personal Commercial Life Health Reinsurers Brokers

Front Office

Customer

Centricity

Future-proof Technology

Middle Office

Operational

Agility

Back Office

Finance, Risk &

Administration

ANALYTICS

for InsuranceTM

Real-Time Analytics SAP provides insurers of

all sizes and countries

the only:

• End2End

• yet modular

• cross line of business

• International

…insurance solution on the most

modern future-proof technology

platform in the world


IFR

A

Hedge

Rela

tion

ship

Busin

ess

Part

ner

Generic.

Mark

et-

data

Phys

ical

assets

Account

Positio

n

Mark

et-

data

BT

/ O

E

FT FI

28© 2015 SAP SE or an SAP affiliate company. All rights reserved.


The Accounting in the Integrated Finance and Risk Architecture

Deposits Loans Treaties BusinessPartner

Accounting for InsuranceContracts

Financial statement preparation / Aggregation GL Connector

Sourcesystems

Policies Swaps Market Data

Fair ValueServer

Cash FlowGenerator 1

2

3

Solvency Managementfor Insurance

Fair ValueServer

Cash FlowGenerator


ONE Service: Collaboration with Standard Development

AGSStandard

Development

AlignedArchitecture

DesignReview

JointRoadmap

CustomerFacing

AvoidingModification

ICC

MCC

End2endresponsibility

CustomerFocus

IterativeDevelopment


ONE Service: SAP Insurance Task ForceOperating Model

Customer1

Customer2

Customer3

Insurance Task Force

InsuranceModel

IndustrySolution

DeploymentRoom

WorkstreamsAGS

DevelopmentFactory

Standard

DevelopmentProgram

AGS StandardDevelopment

Recruiting,Training &Staffing



• Integrated Finance and Risk

Management Architecture

• Yet modular

• cross line of business

• International

ONE Service • End2end

• responsibility

• Customer Focus

• Iterative Development

Simplify the Business Transformation journey –

SAP ONE Service Round Table DiscussionSAP Global Service & Support

June 16, 2015