solution overview automotive collaborative product innovation

Solution Overview

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Customer-Driven

Innovations

Automotive

Collaborative Product Innovation

Executive

Summary

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To succeed in the competitive global automotive sector, businesses are faced with

the challenge of bringing high-quality product innovations to market. This level of

innovation requires significant collaboration among global design and engineering

teams as well as the sharing of data in real time.

Innovation within the automotive industry is

developing at an increasingly fast pace. There

has been a remarkable shift from the compo-

nent era to the development of innovative

automotive systems, and 80% of today’s new

innovations are in the field of electronics.

Customers are now looking for a superior

vehicle experience that goes beyond mere

transportation, where new technologies such

as onboard navigation and driver assistance

are standard features. They often wish to

express their personality and identity through

their chosen vehicle.

The automotive environment is generally made

up of global platforms to support the design and

engineering of products by teams around the

world. Global, company-wide access to data

and systems is key. To achieve this, companies

need to take an integrated approach towards

enabling high levels of global collaboration and

the sharing of data in real time.

While implementing the latest technologies to

help improve operational efficiencies, auto-

motive manufacturers also need to focus on

managing and fulfilling the increasing safety

standards and strict environmental require-

ments. Today’s vehicles must meet new and

evolving safety standards, consume less fuel,

produce less pollution, and leave a smaller

carbon footprint.

Innovate Products Collaboratively

Integrated Development

Innovation Leaders

SAP Innovations

Faster Cycle Times

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To survive, companies faced with intense global competition and ever-increasing

customer demands must be able to quickly bring high-quality, innovative products

to market. Product innovation excellence has become the prime differentiator for

driving the success of automotive companies.

Achieve Product Innovation Excellence

Faced with the challenge of driving innovation

and achieving fast time to market in a constantly

changing environment, companies must integrate

their processes. Increase company success

through innovation, drive new levels of perfor-

mance, and maximize profitability by ensuring an

integrated approach to the application of evolving

technologies and initiatives.

Transform ideas into marketable offerings by

establishing a collaborative environment with a

single and consistent “version of the truth,” from

concept through to field service. Harness the

value of real-time integrated data to define

performance targets, analyze current

operations, and determine the profitable next

steps. Achieve reduced time to profit through

dashboards that support decision making and

provide a single view of product performance,

processes, and financial data. Develop

synergies and efficiencies by fully integrating

processes for development, sourcing,

manufacturing, and services from the design

stage through to product launch.

Best-Run

Product Lifecycle Management


Innovation Leaders

SAP Innovations

Faster Cycle Times

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Shorter time to market for new

products when communica-

tions inform stakeholders of

prototype and ramp-up

progress

Source: SAP Performance

Benchmarking

Global product design and engineering teams can collaborate and innovate in

real time, maximize resources, monitor performance against plan, and react to

unexpected challenges. These efficiencies help companies reduce the time it

takes to bring innovative, high-quality products to market.

Accelerate Innovation and Time to Market

Efficiently manage product complexity in global

engineering teams by helping to ensure all

development domains are supported and

integrated into a collaborative environment.

Different domains throughout the development

cycle commonly use different structures and

views. However, through an integrated

approach, make a single version of the truth

available company-wide, helping to ensure

consistency and avoiding discrepancies.

Establish a change-and-release process that

supports consistent structure and process

information for all domains, such as project,

cost and compliance, controlling, and digital

and physical mock-ups.

Achieve maximum advantage from product and

service investments through improved decision

making at all levels. Make informed decisions

based on analytical insights into portfolio

performance, customer trends, market demand,

supplier performance, product quality

compliance, and service satisfaction. By

implementing sophisticated technology from

SAP, closely integrate product and service

development in order to execute tasks. This

degree of process integration helps to reduce

the time to market, increase volumes, and

improve financial performance.

27%


Innovation Leaders

SAP Innovations

Faster Cycle Times

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Automotive companies must keep up with the accelerating pace of IT innovation.

This means embracing innovative technologies to enable collaboration beyond

company boundaries, accessing product data in real time across the enterprise,

and gaining deep insights into product-level performance.

SAP offers automotive companies integrated

technologies to support global, collaborative

development and promote innovation. These

technologies help companies innovate faster,

increase quality, implement efficient manu-

facturing processes, and deliver excellent sales

and service, increasing profitability and com-

petitive advantage.

Database and technology solutions including

the SAP HANA platform enable companies to

manage the Big Data associated with complex

product structures. The access controls that

these solutions provide are essential for

efficient collaboration with external design

partners.

Analytics solutions directly embedded in

business applications provide 360-degree

views into the performance of products,

services, and projects. Analytical functionality

supports collaborative innovation by tracking

product development throughout the complete

project lifecycle, resulting in faster, fact-based

decision making.

Mobile solutions help automotive companies to

increase employee efficiency and productivity.

Technicians in the field have fast and immedi-

ate mobile-enabled access to essential infor-

mation, such as service instructions and 3-D

product assembly details. Field-based project

teams can record job time and work progress

using mobile devices, increasing the overall

quality of project performance tracking.

Cloud-based solutions allow collaboration,

discussion, and agreement across all

automotive processes.

SAP Innovations


Innovation Leaders

SAP Innovations

Faster Cycle Times

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By focusing on sustainable customer-driven innovations, automotive organizations

can safeguard future revenue streams and integrate product development

processes to increase collaboration and reduce costs.

Manage Innovation

Optimize resource allocation and financial management in the innovation process.

Analyze the impact of product innovation investments on business performance.

Design Products

Manage all data centrally, providing a single version of the truth that gives all

stakeholders the same information to support product design and development.

Help Ensure Compliance

By integrating regulatory compliance at the design stage, help to ensure scalability

in multiple markets, while avoiding product recalls and brand value erosion.

Create Customer-Driven Innovations

Innovation Success

Targeted Innovations

Regulatory Compliance


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Continually identify opportunities for innovation and

growth. Align innovation road maps with corporate

strategies and allocate resources to projects with the

greatest potential. Help to ensure the timely completion

of product innovation with full visibility of portfolio

performance through robust processes.

The gathering of accurate and real-time infor-

mation from multiple sources, such as design and

engineering, supports the continuous delivery of

innovative new products. Automotive companies

require full, company-wide visibility into projects

in order to improve selection, scoring, monitoring,

and reviewing processes from design through to

product launch.

Efficient resource management helps manage

project task durations and outcomes. Closed-

loop project execution helps automotive

companies optimize productivity levels, reduce

development costs, and increase the number of

successfully developed innovations. Innovative

organizations are flexible enough to fine-tune

resource allocations when priorities change as

market volatility forces shifts in focus.

Value cannot be ensured by simply developing

and launching a new product on time and within

budget. Other critical factors include cost

structure, pricing, and market adoption – factors

that the product development team have little

influence upon. In order to achieve innovation

success, the development and market launch

stages need to be closely coordinated,

engaging all stakeholder groups from the

very outset.

Continually Innovate for Success

14% Higher new-product revenue

as a proportion of total organi-

zational revenue when there

are clear and documented

metrics to evaluate the idea

management process


Benchmarking

Innovation Success




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Enable shared access to the same up-to-date product-

related information along the entire value chain when

developing, producing, and maintaining products. The

product structure forms the basis for collating all the

information used by all the departments involved in

product development.

The product structure essentially forms the

backbone of the project, while a second, more

detailed level provides in-depth information for

product validation and release.

Where production and purchasing start in

parallel, automotive companies can help to

accelerate the manufacturing process. Depend-

ing on the decision to make or buy, production

lines need to be prepared or suppliers sourced.

The transfer of information from product

engineering to manufacturing engineering is

critical, as is the need for effective master data

management. With separate bills of material,

both these departments have a great deal of

freedom and flexibility. However they need to

be fully harmonized, with shared access to

information through a collaborative structure.

Robust change management processes are

required for accurate record keeping, sound

decision making, timely implementation, and

clear communication.

Authorized information is grouped so that users

only view what is relevant and key to their

roles. Regulatory compliance must be

monitored during product development, when

all inputs are defined. Analytics functionality

provides insight into other links in the value

chain, such as quality notifications, logistics

information, and supplier details.

Integrated Product Development

19% More new products meet

revenue targets in organiza-

tions where an idea manage-

ment application is integrated

with new product development

and introduction applications


Benchmarking

Innovation Success




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Product compliance regulations around the world are

becoming stricter and more complex. Best-run automotive

companies are able to turn this challenge into an

opportunity. Embedding compliance into product design

processes helps these companies stay one step ahead of

the changing regulations within the industry.

To develop high-quality products that meet

today’s strict regulations and standards,

automotive companies must adopt a proactive

approach to compliance, and embed it early on

in the development stage of the product life-

cycle. Companies that fail to take this approach

are faced with reduced product marketability,

unsatisfied customer expectations, wasted

inventories, and, in the worst case, costly

product recalls.

To ensure regulatory compliance is achieved

from the beginning, processes must be in place

to comprehensively test and document the

attributes of products developed in-house.

This requires the collection of all relevant

information from suppliers for procured raw

materials. To effectively use this data, a step-

by-step compliance-checking process takes

place during product development, where

engineers and researchers have real-time

visibility into all input materials and substances.

Best-run companies proactively and systemat-

ically exchange compliance information both

internally and externally. This helps to ensure

that the products developed are always

compliant and marketable, and ultimately

satisfy customer expectations.

Develop Compliant Products

16% Higher new-product revenue

for organizations with more

mature processes for com-

pliance and sustainability


Benchmarking

Innovation Success




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Collaborative Product Innovation Value Map

SAP solutions address key requirements for collaborative product innovation.

Continuous Innovation

SAP Solutions

Product Compliance

Integrated Development Idea

Management

Enterprise

Project

Connection

Portfolio

Management

Project

Management

Resource

Management

Product Design Strategic

Sourcing

Ramp-Up to

Production

Product

Compliance

Product Design

(Discrete

Industries)

Quality

Planning and

Control

Continuous

Service and

Product

Innovation

Embedded

Product

Compliance

Integrated Product

Development for

Discrete Industries

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Lower total product cost as a

% of revenue for organiza-

tions that evaluate product

ideas with a standard set of

analytics


Benchmarking

Continuous Service and Product Innovation

Develop new products and services based on sound

investment decisions.

The solution enables automotive companies to continually identify

opportunities to transform concepts into products, optimize project

management processes, and commercialize new product offerings.

Access to integrated revenue and cost analytics helps companies

monitor product performance and utilize this in the formulation of

future product and service development strategies.

65%

Idea Management Collect, screen, and rationalize new ideas, conduct preliminary assessments, and

ensure prospects match company strategies.

Portfolio

Management

Identify the projects that will generate the most business value and take into account

available financial and human resources as well as required skill sets.

Project

Management

Integrate project management with enterprise resource planning software for insight

into cost, time, scope, and quality performance at each stage of product

development.

Resource

Management

Allocate appropriate resources to specific tasks. This begins in the project planning

phase, when resources are reserved for later confirmation and used once the project

is underway.

Enterprise Project

Connection

Connect to third-party scheduling tools to retrieve up-to-date project information

presented through a comprehensive view of the enterprise portfolio.


SAP Solutions

Product Compliance


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Integrated Product Development

Increase collaboration, reduce product development

cycles, and minimize costs.

The integrated product development solution enables a consistent and

accurate view of product data. It supports product design, strategic

sourcing, and ramp-up to production processes. Through integrated

product development, all these processes help contribute towards

reducing the time to profit and increasing the profitability and

competitiveness of the business.

17% More new products meet

revenue targets with clear,

documented metrics to

evaluate idea management

processes


Benchmarking

Product Design Reduce development times with greater opportunities for innovative product design

through a single integrated process. Increase efficiency and product quality with

accurate, integrated data.

Strategic Sourcing

Empower the departments involved to consider material sourcing and procurement

at an early stage in the product development cycle. Enable access to accurate

information for evaluating potential suppliers and conducting the bidding process.

Ramp-Up to

Production

Synchronize development and manufacturing processes to generate consistent,

up-to-date data across both departments. The result is greater product quality and

reduced time to market with fewer change cycles. Define prototypes and production

ramp-ups through an integrated flow of data communication.


SAP Solutions

Product Compliance


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Embedded Product Compliance

Embed compliance into the product development

process.

Vehicles designed and produced today must meet new and evolving

safety standards, consume less fuel, produce less pollution, and

generate a smaller carbon footprint. Manage the increasing safety

standards and satisfy strict environmental requirements, while taking

steps to improve operational efficiencies.

28% Higher average annual

savings when contract

compliance is directed, or

even mandated, by system

controls


Benchmarking

Product

Compliance

Obtain compliance data from the supply chain and combine it with prebuilt regulatory

content to assess product compliance during the design stage and provide complete

compliance documentation. As a result, the business can help to ensure product

marketability, protect the brand, and reduce the cost of compliance-related activities.

Product Design

(Discrete

Industries)

Reduce development times with greater opportunities for innovative product design

through a single integrated process. Increase efficiency and product quality with

accurate and integrated data.

Quality Planning

and Control

Adopt a total quality management approach that includes tightly integrated closed-

loop quality planning, execution, improvement, and collaboration. Minimize

operational costs and maximize customer satisfaction.


SAP Solutions

Product Compliance


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Of companies believe that the

cloud will amplify and accel-

erate other technology trends

such as enterprise mobility,

Big Data, and analytics


Benchmarking

Innovative technologies enable automotive companies to

better understand customer needs, obtain the necessary

insights to develop the products desired by the customer,

and gain a competitive edge. Speed up production times,

improve quality, and maximize profitability through

manufacturing and operational efficiencies.

SAP Innovations

Big Data

Rapidly analyze huge volumes of business, quality, and customer data in real time to help derive

actionable intelligence and gain a competitive edge.

Mobile

Provide employees with access to critical intelligence in engineering, manufacturing, supply chain,

and sales and service organizations – anytime, anywhere via mobile devices.

Analytics

Rapidly conquer a diverse set of automotive-specific challenges through targeted insights.

Cloud

Gain a competitive advantage and cost efficiencies by providing on-demand solutions to support

mission-critical services.

65%

SAP HANA

SAP Innovations

Mobile

Analytics

Cloud

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SAP HANA

A huge amount of data is generated by automotive depart-

ments from engineering to manufacturing and supply chain

to sales and service. SAP HANA offers the functionality to

derive the best value from Big Data, rapidly processing and

analyzing information for collaborative innovation, manu-

facturing efficiency, and customer insight.

53% Of organizations report a

large gap between the

availability of Big Data and

their ability to analyze it for

insights


Benchmarking

Global Engineering

Process Big Data to collaboratively speed up innovation, accurately determine costs,

improve quality, and meet regulatory requirements. Reduce the time to market for

the products that customers want and need.

Manufacturing

Gain faster insights from the vast amounts of data generated by manufacturing

activities. Big Data solutions powered by SAP HANA can help improve operational

efficiencies and reduce manufacturing costs.

Global Supply

Networks

Continuously analyze and monitor huge amounts of data in real time in order to react

to demand and supply volatility and maximize supply chain reliability and efficiency.

Marketing and

Sales

Leverage the insights obtained from Big Data in order to understand customer

sentiment and buying behavior. Deliver positive customer experiences by

harnessing the value of customer and vehicle data.

SAP HANA

SAP Innovations

Mobile

Analytics

Cloud

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Higher operating margins

when enterprise mobility is

embedded in all business

processes


Benchmarking

24%

Mobile

Mobile solutions from SAP enable business processes

that are more efficient, timely, and cost-effective. The

technology to access actionable intelligence for

engineering, manufacturing, supply chain, and sales

and service organizations anytime and anywhere helps

automotive companies drive competitive advantage.

Manufacturing and

Operations

Enhance collaboration and speed up manufacturing processes by providing

employees with mobile devices that enable fast and clear access to work

instructions, changes in production flow, and quality issues.

Supply Chain

Use mobile solutions to monitor and optimize the supply chain and help ensure a

smooth delivery. Rapidly respond to exceptions and possible disruptions, and

quickly identify and take advantage of new opportunities.

Sales and Service

Optimize the customer experience by providing employees with always-on,

anywhere mobile access to information at the point of customer interaction.

Empower customers to research and compare vehicles online, book a test drive, or

make a service appointment – all from their smartphone or tablet.

SAP HANA

SAP Innovations

Mobile

Analytics

Cloud

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Analytics

Analytical software offers real-time insight into business

processes, performance, and customers. The SAP

Performance Analytics for Engineering, Construction, and

Operations analytic application provides automotive

companies with real-time visibility into valuable data to

support decision making and help improve processes and

performance.

Engineering

Run business analytics to improve collaborative insight and support engineering

processes. Enable engineers to visualize complex data using interactive modeling

and dashboards to rapidly bring new high-quality products to market.

Manufacturing

Enhance manufacturing operations through the optimal utilization of plant assets.

Identify production hot spots that require closer attention or intervention, and more

efficiently align supply with demand.

Supply Chain Provide greater visibility into the supply chain and enable a rapid collaborative

response to challenges and opportunities.

Marketing and

Sales

Accurately segment customers to more effectively target marketing activities while

reducing costs and improving relevance. Gain a 360-degree understanding of

customers and their vehicles to deliver a positive customer experience.

SAP HANA

SAP Innovations

Mobile

Analytics

Cloud

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65% Of organizations believe

that cloud will amplify other

technology megatrends,

such as enterprise mobility,

Big Data, and analytics


Benchmarking

Cloud

Cloud-based innovations help automotive companies

speed up operations, achieve cost efficiencies, and gain

competitive advantage. Cloud applications include on-

demand solutions that support mission-critical services,

enabling greater business agility, collaboration, and

innovation.

SAP has invested in cloud solutions to help automotive companies change gears

and optimize and accelerate activities across the value chain. Cloud-based

solutions, such as the SAP StreamWork application, allow collaboration, discussion,

and agreement across all automotive processes.

Cloud-based solutions from SAP also support comprehensive business processes

on demand. Benefit from process efficiency throughout engineering, manufacturing,

supply chain, and sales and service businesses while containing operational and

deployment costs.

New business models built on, or enabled by, the cloud are transforming the

automotive industry. The connected car is an example of how cloud-based

technology is opening up new business opportunities and new ways to interact with

customers. Cloud-based solutions from SAP deliver new opportunities to enhance

loyalty and speed up revenue optimization from commercial vehicles. Use cloud-

based technology to enhance the ownership experience for customers across the

globe who drive passenger cars which are fuel efficient and environmentally friendly.

SAP HANA

SAP Innovations

Mobile

Analytics

Cloud

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Best-Run Customers

10 of the top 10 automotive companies run SAP.

77,000 vehicles are manufactured by SAP customers every day.

87% of Fortune 1000 automotive companies run SAP.

7 of the Forbes 50 most admired companies in the world are SAP customers.

7 of the Forbes 100 biggest public companies in the world are SAP customers.

TVS Motor

Best-Run Customers

Why SAP?

BorgWarner Turbo Systems

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SAP co-innovates with leading automotive companies through the Automotive

Executive Advisory Council. Its 45 member companies lead co-innovation initiatives

and activities while focusing on continuous improvement across the entire value chain.

Customer Co-Innovation

Automotive Executive Advisory Council

The Automotive Executive Advisory Council facilitates strategic engagement and collaboration

between business and technology professionals from top automotive companies in order to

achieve long-term business goals.

Customer Network for R & D and Engineering

This forum provides customers with the opportunity to exchange best practices, discuss current

challenges, and identify upcoming trends. Whether this is in new product development, continuous

innovation, or project and portfolio management.

Co-Innovation Partners

SAP works with co-innovation partners including DSC Software AG, Cideon Software, Cenit, and

.riess Engineering to develop innovative software solutions to support automotive companies. Key

co-innovation projects include the joint collaboration on the design and architecture of a new CAD

service layer as well as continuous innovation for the CAD desktop program from SAP.

TVS Motor

Best-Run Customers

Why SAP?


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TVS Motor Company Limited, with about 6,500 employees and

US$1.5 billion in revenues, is one of the largest two-wheeler

manufacturers in India, producing motorcycles, scooters,

mopeds, and auto rickshaws.

The challenges and opportunities were to establish a collaboration and

data-sharing process across a globally distributed supplier network,

develop new products simultaneously, and establish tighter quality

controls across all design states.

Key Benefits

Ability to deliver new product to market 25% more quickly

40% increase in employee productivity

Control and visibility of cost overruns and risks via streamlined workflow

Improved functionality to handle multiple projects simultaneously

Integration with

deployed SAP ERP

application and

third-party software

Two-way

communication

support with global

supply network

Compelling solution

demonstration that

is fully aligned with

requirements

TVS Motor

Best-Run Customers

Why SAP?


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“We have more than doubled the rate of new products introduced to the

market. But we needed to do even better. Once we deployed SAP Product

Lifecycle Management, we did.”

T. G. Dhandapani, Group CIO, TVS Motor Company Limited



BorgWarner Turbo Systems is a subsidiary of BorgWarner

Inc., a key international player in advanced technologies and

systems for the automotive industry. BorgWarner Turbo

Systems is a leading global supplier of turbochargers for

diesel- and gasoline-powered passenger cars, light trucks,

and commercial vehicles.

Effective management of mission-critical product data such as technical

drawings, design specifications, and materials lists is key to business

success. And smooth, effective collaboration between the employees

who rely on these facts and figures can accelerate innovation and time to

market. To achieve all this, global automotive player BorgWarner Turbo

Systems decided to replace its legacy product data management system

with the SAP Product Lifecycle Management application. The company is

reaping a wealth of benefits.

Key Benefits

Consolidated data from three applications into one

Greater visibility into data

Faster approval processes

Strong basis for future growth

Improved change

management

Improved data

quality and

consistency

Effective collabo-

ration between

engineers at global

sites

TVS Motor

Best-Run Customers

Why SAP?


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Integrated SAP Business Suite applications support automotive companies in

the close alignment of business operations with corporate objectives. The

synchronization of engineering and business processes helps companies to

drive continuous improvement.

Why SAP?

Tightly Integrated Comprehensive Solutions

SAP offers automotive companies a comprehensive portfolio of closed-loop solutions to support

product innovation, product development, and product compliance in order to achieve a shorter

time to market.

Leveraging Key Breakthrough Innovations

The solution portfolio from SAP delivers robust and innovative technologies that can be adapted

and configured to help automotive companies efficiently leverage existing intellectual capital.

Proven Time to Value

Some of the world’s leading automotive manufacturers run SAP to design, develop, and build

competitive products for their customers while meeting the increasingly complex regulatory

demands of the 21st century.

TVS Motor

Best-Run Customers

Why SAP?


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Benchmark Your Performance

Position your organization for dominance in this new economy with the business performance

benchmarking program from SAP – available free to SAP customers and select prospects.

The SAP benchmarking program has helped more than 3,000 organizations assess their

strengths, uncover areas for improvement, and identify best practices and IT strategies that

generate clear, tangible value – not someday, but today.

Go Live in Weeks

Here’s the fastest way to run your business better: our rapid-deployment solutions. In one

package, you get everything you need to be up and running quickly – including preconfigured

software and implementation services – in just weeks. With a defined scope and predictable

costs, there are no surprises.

Join Your Community of Practices

Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work.

It lets members help one another solve problems, learn, and invent new ways to get things

done – faster. Find out how to connect with people, content, and resources.

Find Out More About How Your Organization Can

Become Best-Run

Visit valuemanagement.sap.com >>

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Solution Overview


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Web:

www.sap.com/industries/automotive

Community:

http://scn.sap.com/community/automotive

Automotive

CMP 25487 (13/04)


http://www.sap.com/industries/automotive

http://scn.sap.com/community/automotive


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