An IDC Infographic, Sponsored by SAP

TRANSFORMING YOUR BUSINESS Through a Digital Supply Chain of One

Drivers of the Digital Supply Chain of One

Customer demand for individualized products

Reducing external supplier costs Developing product-related services

Improving sales and revenue generationTying product quality to product development

Improving adaptability and flexibility of supply chain

Staying ahead of the competition Expanding to new markets

Improving service to customers

Compliance with regulations

Strong security due to increased connectivity

Expanding ecosystems across supply chain and industry that require close collaboration and communications

The need to have visibility into product performance to maintain high levels of customer satisfaction

Increasing connectivity and complexity across product, supply chain, and manufacturing that create massive amounts of data

Top 5 Business Priorities Top 5 Business Prioritiesfor the Executive Suite Now for the Executive Suite in 3-4 years

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A Digital Supply Chain of One is Necessary to Stay Competitive

Powered by Digital Transformation (DX),Across Industry at SMB and Large Companies

Closed-loop PLM

By 2019

By 2020

By 2020

3rd Platform technologies—mobile, cloud, big data, and social —will drive nearly 75% of IT spending

60% of discrete manufacturers will use digital twins with analytics to track performance and usage for better product design and improved service quality

60% of global companies will be in the process of integrating their product, supply chain, and service systems for iterative improvement of products and the customer experience

3rd Platform spending will grow at 2Xthe rate of the total IT market

Innovation accelerators – analytics, blockchain, IoT, 3D printing, robotics – are growing at 17% CAGR through 2020

A Digital Innovation Platform

enables a Digital Supply Chain of One powered by Cloud, Analytics, IoT, Business Applications, and Blockchain

To address challenges and executive priorities and to thrive in today's economy, the product life cycle, supply chain, and manufacturing must be connected through a digital innovation platform.

Move to open, cloud-based platforms for product innovation, supply chain, manufacturing, and revenue growth

Leverage a network of digital twins across product, manufacturing, and the supply chain to enable a visual, digital thread through a business network

Monetize connected products by understanding performance, usage, and service demand – 58% of manufacturers want to leverage analytics on IoT data for new revenue-generating services

Make platforms intelligent with AI, machine learning and analytics

9%

9%

67%

of manufacturers use an innovation platformfor extended collaboration

are at an early DX stage

have digitally transformed their supply chains

What to Do Now

A Digital Innovation Platform Provides Intelligent Decision Support

for a Digital Supply Chain of One

Key technology considerations:

Enables the unification of legacy and new system, data, and process

Leverages structured and unstructured data to enable a connected and customized world

Establishes trust and process automation across an extended value chain through blockchain and advanced security

Provides visibility and decision support across your digital innovation system through cloud, machine learning, and analytics

Addresses product, supply chain, manufacturing, and customer needs through a digital innovation system

Bottom Line:

To learn more, read the IDC InfoBrief, "Understanding the Digital Supply Chain of One," sponsored by SAP.

A digital supply chain of one delivering customer centricity, predictive business, smart automation, and total visibility — all powered by a digital innovation platform — enables the flexibility and speed required to collaborate across ecosystems, capture connected product data, and meet unique customer needs.

All IDC research is © 2018 by IDC. All rights reserved. All IDC materials are licensed with IDC’s permission and in no way does the use or publication of IDC research indicate IDC’s endorsement of SAP’s products or strategies.

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Key considerations for building a digital supply chain of one are:

Elements of DX

Innovation platforms

Manufacturing automation

Digital twin

Digital service

Closed-loop PLM

3rd Platform technologies

Connected supply chain

Focus on Customer Centricity

Leverage a Digital Innovation Platform,

Invest in Smart Automation

Enable Predictive Business

Ensure Total Visibility

by sensing demand and expediting delivery

across design, production, service, and maintenance

to capture and analyze connected product information for optimal quality

powered by IoT, blockchain, artificial intelligence, machine learning, and analytics, to enable secure process automation, smarter decision making, and faster response to the customer and end consumer

to realize flexible, rapid manufacturing