Positioning Business Value of

Rajamani Srinivasan
Vice President – Partner Programs & Development
SAP Asia Pacific Japan

August 2018
Digitization is Changing the World – Technologies are the Foundation

Advanced Analytics Social Media

Big Data

Blockchain

available
Mobile Convergence
scalable
of
Technologies
economically usable
Cloud

Internet of Things

Machine Learning In-Memory Computing

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2
Impact of Digital Economy on Enterprise Software

It is a Real-time Business &

Business Processes extend Anytime, Anywhere, Always
hence need Real-time
beyond Humans connected to the world
Insights

• Customer Centricity • Smart Products • Value Chain Orchestration

• New Business Models • Smart Manufacturing • Stakeholders Collaboration

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3

SAP Strategy – Deliver the Intelligent Enterprise

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4

An Intelligent Suite delivers intelligence across value chains

Out-of-the-box integration leveraging the Best in class UX with Modular, making Easy to extend, allowing Intelligence embedded
SAP Cloud Platform, SAP Cloud Analytics and consistent experience it easy to consume and customers and partners to in the applications making
a common data foundation with SAP HANA across the entire portfolio cost-effective to operate. customize solutions quickly the workflows smarter
and SAP Data Hub
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5
Digital Platform unlocks data-driven intelligence and innovation

Next generation data SAP HANA powers Data Hub provides Platform for extending Delivering deep Marketplace for
management expands SAP Applications as data orchestration the business processes data and process ecosystem to build
SAP HANA in-memory the foundation of and meta data of our Intelligent Suite integrations new innovations
database to address high performance management across and enabling new through APIs and leveraging APIs and
structured and data warehousing heterogeneous data innovations microservices Business Services
unstructured data and analytics sources
use cases and
external data
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6
Intelligent Technologies: SAP Leonardo everywhere

Applications that deliver intelligence
within core business process (e.g.,
Intelligent ERP, Intelligent HR)
A toolbox of intelligent technologies (IoT,
AI/ML, and Analytics), microservices, and
data management tools that will be available
over the SAP Cloud Platform to deliver
intelligence out of the box as well as through
co-innovation
Innovation services combining design-thinking
and Industry accelerators to ensure customers
derive value from innovative new technologies
quickly and with reduced risk

Universal analytics and digital boardroom

connecting the enterprise for the CXO

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8
Build the Intelligent Enterprise
Machine Learning Roadmap Excerpt

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9

SAP S/4HANA: What is fundamentally different from ECC ?

SAP HANA AS THE

UNDERLYING PLATFORM SIMPLIFICATION OF APPLICATIONS
 OLAP & OLTP MERGE AND UNDERLYING DATA MODEL
 IN-MEMORY COMPRESSION REAL-TIME &  NO AGGREGATES & NO INDICES
SAP HANA
 INCREASE IN SPEED SIMPLIFIED  HIGHER FLEXIBILITY & THROUGHPUT
 DATA FOOTPRINT REDUCTION

SAP FIORI

SAP FIORI AS THE

USER EXPERIENCE (UX) PARADIGM;
 CROSS-APPLICATION USER EXPERIENCE
 WEB-BASED, ALL DEVICES
 ROLE-BASED
 DECISIVE

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10

What does it mean for the Business?
From System of Record to System of Engagement

Eliminate batch processing, Improve user productivity

Real Time data reconciliation to Responsive through role based,
improve performance and simplified and intuitive UX
speed design

Discover and respond to

Predictions future opportunities and Analyze at any level
Drilldowns without exporting data
challenges

Explore the impact of Recommen- Built-in data driven

Simulation business decisions on decision support systems
outcomes
dations

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11

Contextual insights at the point of decisions

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 12

Business Process View – Soft financial close anytime

Traditional System Close Consolidation With SAP S/4HANA

batches batches

Reporting on demand

Initial period Close and consolidation Initial period Close and consolidation

With traditional system: User With SAP S/4HANA

Ad Hoc
Interaction
 Close activities that don’t begin until period end  Real-time system with key performance indicators (KPIs) instantly refreshed
 Multiple batch-run dependencies  Elimination of end-of-period batch bottlenecks
 Batch bottlenecks that delay downstream activities Traditional With SAP S/4HANA  Continuous intercompany reconciliation
 High error-correction efforts  Continuous financial reporting visibility
 Complex issues that are postponed until after close  Profitability analysis and line-item detail reconciliation
 Time-pressured resolutions  Automation for routine tasks
 Delayed visibility into reporting Process Excellence  Full management visibility of close tasks

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 13

Re-invented Business Processes

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 14

Drive Business Value with Movement to S/4HANA

Are you looking at profitable growth for your business?

Are you looking at new business models and revenue sources?
Are you looking at improving the user experience & productivity?

Real-time & Better Re-invented Business

Simplified Architecture
Insights Processes

• Real-time Customer behavior • Integrated Planning • Lean data footprint

• Business Performance • Self-driving Customer Service • Landscape and Setup simplification
• Asset Performance • Conversational Sales Bots • Cloud hosting
• New business models • Stakeholders integrated real time • Intuitive all devices, mobile first
• ……… • ………… • …………

Business Value
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 15
Where are the Specific Value Drivers?
Key Lines of Business (LOB) Dimensions of S/4HANA Value

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 16

 S/4HANA Business Value References
Digital Core - Lines of Business - Digital Industries - Cloud Integration

Digital Core
Customers Conversion IT Data Live Business System Landscape
as of July 2017 Compliance Efficient Simplification
With parent group policies Data migration from SAP
>200 Ø Simplified Business Suite to S/4HANA Faster 24
References Reconciliation issues IT landscape & operations Closing of Books Systems consolidated into 3
>6300 <6 75% 50%-100% Better 65
Customers Months to go live Reduction in Data Volume Reduced localization costs Stock Visibility System interfaces from 370

Lines of Business

Finance Sales Supply Chain Procurement Manufacturing Research &

Development

4 15%-20% 95% 60%+ 15% 3

Days to close annual books Expand Sales Pipeline Faster MRP in operational efficiency Reduction in operation cost Months to deploy S/4HANA
3-4x Simplified 20%
Faster financial closing
Unified GL
20%+ 0
Data Analysis Reduction in defects per unit in procurement savings Failures for product samples
processes

Digital Industries

Aerospace & Automotive Chemicals Oil & Gas Mill Products High Tech IM & C Life Sciences
Defense
75% 10%+ 50% 5 30%+
Fewer sales returns than Months To go live 20%-40% 15%
Reduction in operation costs Accuracy of cost analysis
Reduction in Data Volume Sales Order Accuracy the industry standard Reduction in bank fees
Faster Response 7 days
On time & budget Real-Time 50% 100% To market conditions 5%-10% 50% Complete closing process
Transition from SAP ERP Tracking of deliveries Lower leakage than the Real-time tracking of invent- Increased Reduced processing Faster access to 10x
industry standard tory movements & expenses Availability of data time & errors real-time data Faster data inquiries

Cloud Integration

Ariba Hybris Commerce Hybris Cloud for Sales Success Factors Fieldglass
15% Less 20%-40% 20%
Manual effort spent on orders Reduction in bank fees Efficiency increase
>80% Millions 5%-10% Up to 7x
Of purchase orders to be managed on Ariba Network of lines of code eliminated Reduced processing time & errors Faster business processes
900 Lower order errors 50%-100% 4 people 300
Suppliers onboarded in one year D/T higher process automation Reduced Localization costs Running payroll, from 12-15 Integrations
Reducing Total Cost of Ownership (TCO)

Impact on IT Landscapes
• Reduced storage
• Less replication
• Less network load
• Faster restart after failover

Example with Finance data

Traditional DB on HANA S/4HANA Current

593 GB
118.6 GB
42.4 GB
8.4 GB

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 19

Industry split of SAP S/4HANA on-premise projects

Current Projects1 Live customers1

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 20

1 as of September 2017
Your Personalized Journey to SAP S/4HANA
Free, self-service guidance you can get today for IT and the line-of-business

1. Build Your Business Case: 2. Discover Your Destination: 3. Plan Your Move:
S/4HANA Business Scenario SAP Transformation SAP Readiness
Recommendations Navigator Check

Identify the business processes See the S/4HANA roadmap for Learn the technical requirements
you can improve and discover new each component in your current and actions for a system
business capabilities. landscape. conversion to S/4HANA.

Customers new to SAP can use Based on current SAP product usage or Based on configuration and usage data for
Business Value Advisor. capabilities your organization wants. customers already on SAP ECC 6.x.
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 21
Next Steps

• Familiarise yourself on HOW TO SELL THE BUSINESS VALUE of migrating to SAP S/4H

• Target your IB customers with a structured engagement

• Run DG Programs including ERP SIM Game for your Customers

• Readiness – Enable yourself on 10Steps2S4H, Demo21 and other Enablement programs run by
SAP

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 22

Salamat!