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1 © 2015 SAP SE or an SAP affiliate company. All rights reserved.
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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7 Public
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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14 Public
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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 27 Customer
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
…