Industry Executive Overview
Chemicals
Driving Performance and Growth in Chemicals
Executive
Summary
SAP Solutions SAP Inno...
© 2013 SAP AG2 / 40
Drive Agility and Growth in Chemicals
Uncertainty, complexity, and regulatory oversight are increasing...
© 2013 SAP AG3 / 40
To achieve sustainable growth, chemical companies must:
Safely optimize asset performance
Synchronize ...
© 2013 SAP AG4 / 40
Best-run chemical companies profitably fulfill the needs of their global customers
across all sales an...
© 2013 SAP AG5 / 40
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
Profitable Growth
Market Situati...
© 2013 SAP AG6 / 40
SAP Innovations
To achieve a sustainable competitive advantage, agility and more effective decision
ma...
© 2013 SAP AG7 / 40
Sustaining profitable growth.
Chemicals Value Map
Executive
Summary
SAP Solutions SAP Innovations Refe...
© 2013 SAP AG8 / 40
For sustainable growth in a dynamic global economy,
competitive differentiation is pivotal to success ...
© 2013 SAP AG9 / 40
Benefits
 Maximize return on R & D investment
 Increase revenue from new products
 Minimize time to...
© 2013 SAP AG10 / 40
With global competition, regulatory requirements, and the
need to improve margins increasing, compani...
© 2013 SAP AG11 / 40
Benefits
 Improve return on assets
 Lower operating costs
 Increase demand responsiveness
 Improv...
© 2013 SAP AG12 / 40
Securing profitable and reliable order fulfillment along
global supply networks, which are characteri...
© 2013 SAP AG13 / 40
Benefits
 Increase perfect order fulfillment
 Improve on-time delivery
 Reduce total inventory: da...
© 2013 SAP AG14 / 40
Get visibility into your sales performance and pipeline
and make profitable decisions based on consis...
© 2013 SAP AG15 / 40
Benefits
 Increase margins
 Reduce costs to serve
 Increase pipeline
 Enhance customer retention
...
© 2013 SAP AG16 / 40
Talent is a true competitive advantage today and
is critical when aligning business strategy and exec...
© 2013 SAP AG17 / 40
Benefits
 Improve productivity and engagement
 Gain real-time insight into business needs
 Align p...
© 2013 SAP AG18 / 40
CFOs implement best practices to help them strike the
right balances between sound stewardship and va...
© 2013 SAP AG19 / 40
Financial Performance
Management
Manage financial performance to execute organizational strategies an...
© 2013 SAP AG20 / 40
While companies often focus on revenue, procurement
savings can increase profits about five times mor...
© 2013 SAP AG21 / 40
Supplier Discovery and
Lifecycle Management
Find new suppliers through solutions by Ariba, an SAP com...
© 2013 SAP AG22 / 40
Businesses enterprises should forge strategic business
partnerships with their IT organizations by al...
© 2013 SAP AG23 / 40
Application Lifecycle
Management
Use application lifecycle management best practices, methods, and se...
© 2013 SAP AG24 / 40
Technology innovations transform companies. They can
run in real time to improve information value, d...
© 2013 SAP AG25 / 40
Analytics
Optimize decision making, execution, and risk management with real-time,
predictive analyti...
© 2013 SAP AG26 / 40
In-memory computing powered by the SAP HANA platform allows you to maximize asset
performance and uti...
© 2013 SAP AG27 / 40
Manufacturing Performance and Asset Utilization
SAP Business Suite powered by SAP HANA simplifies min...
© 2013 SAP AG28 / 40
In-memory computing solutions from SAP, powered by the SAP HANA platform, can help you
make intellige...
© 2013 SAP AG29 / 40
In manufacturing, you can enhance safety and productivity in the plant with instant information
about...
© 2013 SAP AG30 / 40
Analytics solutions from SAP – with live dashboard-driven performance metrics – can provide
manufactu...
© 2013 SAP AG31 / 40
Cloud solutions from SAP can help you tap into growth opportunities in emerging markets.
You can brin...
© 2013 SAP AG32 / 40
Ten of the top 10 and 97 of the top 100 chemical companies run SAP.
Best-Run Customers
Executive
Summ...
© 2013 SAP AG33 / 40
SAP co-innovates with leading chemical companies through the Chemical
Executive Advisory Council to c...
© 2013 SAP AG34 / 40
“Now that technicians have actual information from our central system, we can
react to customer requi...
© 2013 SAP AG35 / 40
“The SAP solution implementation has had a strong impact on how Braskem
fulfills customer demands, th...
© 2013 SAP AG36 / 40
“The ultimate way to create value is to identify and deliver key initiatives
that improve corporate p...
© 2013 SAP AG37 / 40
“Not having an automated REACH compliance system is inconceivable to
us now. Without the SAP Environm...
© 2013 SAP AG38 / 40
SAP for Chemicals solutions enable sustainable growth through safely optimizing
asset performance, en...
© 2013 SAP AG39 / 40
Benchmark Your Performance
Position your organization for dominance in this new economy with the busi...
Industry Executive Overview
Chemicals
SAP for Chemicals
http://www54.sap.com/industries/chemicals.html
https://twitter.com...
© 2013 SAP AG. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any pu...
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Driving Performance and Growth in Chemicals

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Uncertainty, complexity, and regulatory oversight are increasing in today’s market. To help ensure sustainable growth and performance, chemical companies must constantly innovate and adapt their products, processes, and business models.

Volatile prices of raw material and energy and the trend to adopt global and sustainable sourcing policies have increased complexity and risks. Understanding spend across multiple business units, collaborating with and tracking supplier’s performance, and measuring critical KPIs to mitigate supplier-related risk becomes essential.

Globalization and shift of demand to emerging countries have significantly increased the level of complexity and uncertainty within supply networks. Hence, proactively managing risks and responding in real time to supply network events is crucial.

Growing competition and rapid commoditization have shrunk product lifecycles. In response to this, an accelerated, streamlined innovation process, an active management of a sustainable product portfolio, and best possible leverage of intellectual property are indispensable.

Further, a constantly growing number of regulations need to be monitored and managed to minimize costs of compliance, risks of supply chain disruption, and damage to brand.

In response, driving excellence across all operations is pivotal. Find out how leading chemical companies can achieve all these goals with SAP solutions and technology.

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Driving Performance and Growth in Chemicals

  1. 1. Industry Executive Overview Chemicals Driving Performance and Growth in Chemicals Executive Summary SAP Solutions SAP Innovations References Contact Us © 2013 SAP AG
  2. 2. © 2013 SAP AG2 / 40 Drive Agility and Growth in Chemicals Uncertainty, complexity, and regulatory oversight are increasing in today’s market. To help ensure sustainable growth and performance, chemical companies must constantly innovate and adapt their products, processes, and business models. Volatile prices of raw material and energy and the trend to adopt global and sustainable sourcing policies have increased complexity and risks. Understanding spend across multiple business units, collaborating with and tracking supplier’s performance, and measuring critical KPIs to mitigate supplier-related risk becomes essential. Globalization and shift of demand to emerging countries have significantly increased the level of complexity and uncertainty within supply networks. Hence, proactively managing risks and responding in real time to supply network events is crucial. Growing competition and rapid commoditization have shrunk product lifecycles. In response to this, an accelerated, streamlined innovation process, an active management of a sustainable product portfolio, and best possible leverage of intellectual property are indispensable. Further, a constantly growing number of regulations need to be monitored and managed to minimize costs of compliance, risks of supply chain disruption, and damage to brand. In response, driving excellence across all operations is pivotal. Find out how leading chemical companies can achieve all these goals with SAP solutions and technology. Executive Summary SAP Solutions SAP Innovations References Contact Us Profitable Growth Market Situation Transformation Through Technology Innovation Business Priorities SAP Innovations
  3. 3. © 2013 SAP AG3 / 40 To achieve sustainable growth, chemical companies must: Safely optimize asset performance Synchronize operations, make data-driven decisions, and proactively manage risk. Meet demand at maximum profitability Optimize pricing, supply, and delivery. Increase returns on product innovation Align product development with portfolio strategy and market delivery. Sustaining Profitable Growth SAP solutions help drive sustainable growth, profitability, and stakeholder recognition through optimizing asset performance, order fulfillment, and return on innovation. Best-Run Chemicals Executive Summary SAP Solutions SAP Innovations References Contact Us Profitable Growth Market Situation Transformation Through Technology Innovation Business Priorities SAP Innovations
  4. 4. © 2013 SAP AG4 / 40 Best-run chemical companies profitably fulfill the needs of their global customers across all sales and distribution channels by optimizing supply chain visibility and responsiveness, product integrity, and operational continuity. Best-Run Chemicals Priorities Understanding the value drivers for each of these priorities is key to executing as a best-run chemical company.  Product Innovation  Manufacturing Performance and Asset Utilization  Complex Supply Chains  Customer-Centric Sales and Marketing  People and Talent  Finance  Procurement  IT Management  Technology Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us Profitable Growth Market Situation Transformation Through Technology Innovation Business Priorities SAP Innovations
  5. 5. © 2013 SAP AG5 / 40 Executive Summary SAP Solutions SAP Innovations References Contact Us Profitable Growth Market Situation Transformation Through Technology Innovation Business Priorities SAP Innovations For over 40 years, SAP’s innovations have helped companies transform and achieve the goals they never thought possible – making more informed decisions and innovating to lead in new markets. SAP enables the real-time enterprise, empowers new experiences, and unwires the business. Enable the Real-Time Enterprise SAP’s integrated, real-time analytical, predictive, and in-memory database solutions improve the business value of your information and optimize business outcomes. Empower New Experiences The SAP software solutions allow you to deliver simple, elegant, real-time applications rapidly across any device, with the superior consumer-grade experience users have come to expect. Unwire the Business Connect with your customers, partners, and employees efficiently and securely with a market- leading mobile platform and device management technologies from SAP. Business Transformation Through Technology Innovation Revenue growth and profit are no longer sufficient benchmarks for success. In today’s economy, companies need to stand out in crowded and highly competitive markets. The pace of business is relentless, where today’s innovation becomes tomorrow’s status quo. Organizations that embrace technology can transform to gain a significant advantage rapidly over the competition.
  6. 6. © 2013 SAP AG6 / 40 SAP Innovations To achieve a sustainable competitive advantage, agility and more effective decision making are paramount. This is achievable through analysis of “Big Data” on mobile devices, supported by flexible, scalable cloud-based consumption models. Executive Summary SAP Solutions SAP Innovations References Contact Us Profitable Growth Market Situation Transformation Through Technology Innovation Business Priorities SAP Innovations Chemical companies have access to a vast amount of transactional data. Breakthrough database and technology solutions such as the SAP HANA platform let you mine, consolidate, and analyze that data at any level of granularity. Leveraging that information requires flexible, scalable, and cost-effective analytics embedded within business processes to monitor critical key performance indicators and enable real-time predictive modeling and optimization, for instant decision support and future planning across diverse business functions. Also, successful chemical companies recognize that their assets are distributed, their people are mobile, and their customers are on-the-go. That’s why they use mobile solutions to accelerate, transform, and bring virtual reality to critical business processes. And as IT transforms from a support function to a strategic driver, new cloud-based solutions for discrete business functions provide low-cost, low-risk deployment – while helping ensure flexibility, scalability, and full integration across end-to-end business processes.
  7. 7. © 2013 SAP AG7 / 40 Sustaining profitable growth. Chemicals Value Map Executive Summary SAP Solutions SAP Innovations References Contact Us Customer-Centric Sales and Marketing Price and Margin Management Order and Contract Management Customer Service and Support Product Innovation and Integrity Integrated Product Development Product Safety and Stewardship Integrated Quality Assurance Information Risk Management Manufacturing Performance and Asset Utilization Efficient Manufacturing Execution Sustainable Operations Manufacturing Visibility and Performance Asset Operations and Maintenance Complex and Volatile Supply Chains Integrated Sales and Operations Planning Manufacturing Network Planning and Execution Logistics Fulfillment People and Talent Core Human Resources and Payroll Talent Management Time and Attendance Management Workforce Planning and Analytics Finance Financial Performance Management Accounting and Financial Close Treasury and Financial Risk Management Collaborative Finance Operations Enterprise Risk and Compliance Management Procurement Supplier Discovery and Lifecycle Management Strategic Sourcing and Contracting Procurement and Order Collaboration Collaborative Invoice to Pay Commodity Management IT Management Application Lifecycle Management IT Infrastructure Management IT Portfolio and Project Management IT Service Management IT Strategy and Governance Product Innovation and Integrity SAP Solutions Manufacturing Performance Sales and Marketing Complex Supply Chains People and Talent Procurement Finance Technology Solutions IT Management Technology Solutions Analytics Consumer ExperienceData Management Enterprise Mobility SAP HANA Platform Application Development and Integration
  8. 8. © 2013 SAP AG8 / 40 For sustainable growth in a dynamic global economy, competitive differentiation is pivotal to success and is achieved by delivering innovative and high-quality products, solutions, and services while reducing environmental footprint. Product Innovation and Integrity Mass customization, shortened product lifecycles, and the demand for new products and services in an extremely competitive environment require chemical companies to accelerate innovation and gain the best possible leverage from intellectual property. To do so, chemical companies must streamline business processes and be even more proactive in managing product portfolios. In addition, companies must be equally proactive in managing the complexity of a steady increase in environmental and global trade regulations. This helps minimize increased risk of penalties, lost revenue, or brand damage from exceeding emissions- permit thresholds, shipping products without registration, sanctioned-party shipments, and the like.24% Higher share of new-product revenue for organizations where new product ideas are captured from all stakeholders through multiple channels Source: SAP Performance Benchmarking SAP Solutions Priorities Product Innovation SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us
  9. 9. © 2013 SAP AG9 / 40 Benefits  Maximize return on R & D investment  Increase revenue from new products  Minimize time to market  Reduce costs of product compliance Product Innovation and Integrity Shorter time to market for new products when all requirements are communicated to suppliers and supplier commitment is secured in a timely manner Source: SAP Performance Benchmarking Achieve superior returns on innovation by linking product development with portfolio strategy, product stewardship, and delivery to market. Chemical companies need market-driven product development that is based on consistent data models and in sync with portfolio strategy, sales, and operations. Integrated Product Development Streamline processes and reduce time to market by integrating product development,customer requirements management, and production ramp-up, based on unified data. Product Safety and Stewardship Enhance marketability and minimizenoncompliance risk by delivering safe products with reduced environmental impact. Integrated Quality Assurance Enable efficientand fast problem solving and foster continuous improvement by managing quality issues and activities across systems. Information Risk Management Protect critical-information assets and help ensure compliance with export regulations for technical data. 27% Executive Summary SAP Solutions SAP Innovations References Contact Us Priorities Product Innovation SAP Solutions SAP Solutions
  10. 10. © 2013 SAP AG10 / 40 With global competition, regulatory requirements, and the need to improve margins increasing, companies need to respond by continuously improving their manufacturing operations and asset performance. Manufacturing and Asset Optimization Margin pressures and compliance requirements are increasing across the industry, from consumer-oriented batch processes to large asset–intensive energy operations. Best-run companies are improving efficiencies while managing market and operating risk by following smart planning and sustainable manufacturing practices. Improved returns on capital are achieved by increasing asset utilization and leveraging outsourced manu- facturing to reduce capital requirements. These efficient, sustainable manufacturing operations provide coordinated planning and product recipe management to rapidly respond to changing demand. Operating and business data is integrated to enable the rapid identification of financial or operational issues. Plant risks are proactively managed, and all resources are sustainably used to meet the challenge of increased regulatory requirements.10% Higher operating equipment effectiveness when the majority of maintenance work orders are generated from preventive maintenance inspections Source: SAP Performance Benchmarking Priorities Manufacturing Performance SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us SAP Solutions
  11. 11. © 2013 SAP AG11 / 40 Benefits  Improve return on assets  Lower operating costs  Increase demand responsiveness  Improve production yield and throughput  Increase asset reliability  Minimize compliance risks Manufacturing and Asset Optimization Lower manufacturing cost as a percentage of revenue when manufacturing execution systems and shop floor are integrated with enterprise applications Source: SAP Performance Benchmarking Optimize asset performance and use by synchronizing processes, enabling data-driven decisions, and proactively managing risk and safety. To maximize manufacturing performance, companies must synchronize plant with business functions and deliver real-time insights at the point of need. Efficient Manufacturing Execution Manage overall plant performance with effective planning and execution to promote sustainable utilization of resources and reliable operations. Sustainable Operations Systematically identify, assess, and control risks to prevent incidents and safety-system failures. Manufacturing Visibility and Performance Establish metrics and real-time monitoring of manufacturing and asset operations to increase uptime, narrow process variability, and reduce costs. Asset Operations and Maintenance Develop predictive maintenance strategies to maximize asset utilization and production lifecycle.10% Executive Summary SAP Solutions SAP Innovations References Contact Us Priorities Manufacturing Performance SAP Solutions SAP Solutions
  12. 12. © 2013 SAP AG12 / 40 Securing profitable and reliable order fulfillment along global supply networks, which are characterized by elements of volatility, uncertainty, complexity and ambiguity, is absolutely critical to success for chemical companies. Complex and Volatile Supply Chains Globalization and shift of demand to emerging countries plus increased cross-border shipments, erratic demand patterns, and competition from emerging countries have increased the level of complexity and uncertainty within global supply chains and networks. So adopting customer collaboration, proactively managing supply chain risks, and real-time response to supply chain events is pivotal. As supply cannot easily follow demand given the capital intensity of chemical manufacturing assets, optimizing inventories across multi- echelon supply networks is a key challenge. And as customers demand more in a growing competitive landscape, reliable and profitable order fulfillment from an end-to-end perspective – including order commitment, inbound/outbound logistics, and transportation planning and execution, including aspects of environment, health, and safety and global trade – is also critical. 9% Higher on-time delivery in chemical companies when processes and systems are integrated with key carriers, freight forwarders, and the like Source: SAP Performance Benchmarking Priorities Complex Supply Chains SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us SAP Solutions
  13. 13. © 2013 SAP AG13 / 40 Benefits  Increase perfect order fulfillment  Improve on-time delivery  Reduce total inventory: days of supply  Minimize transportation spend  Enhance forecast accuracy  Reduce order-fulfillment lead time Complex and Volatile Supply Chains Lower days in inventory in organizations where forecasts are dynamic and updated frequently Source: SAP Performance Benchmarking Help ensure reliable order fulfillment at maximized profitability by managing supply and delivery to consistently meet demand at minimum cost. Chemical companies must synchronize demand with supply, drive reliable order fulfillment, and gain visibility into supply chain risks and events, all in real time. Integrated Sales and Operations Planning Enable planning and real-time analysis with a unified model of demand, supply chain, and financial data across any dimension and at any level of granularity, thus providing real-time what-if simulations and social collaboration. Manufacturing Network Planning and Execution Integrate external manufacturing and procurement to orchestrate a responsive supply network. Logistics Fulfillment Integrate end-to-end global logistics, planning, and fulfillment solutions to orchestrate processes across the organization and beyond, while enabling regulatory compliance and real-time event response.12% Executive Summary SAP Solutions SAP Innovations References Contact Us SAP Solutions Priorities Complex Supply Chains SAP Solutions
  14. 14. © 2013 SAP AG14 / 40 Get visibility into your sales performance and pipeline and make profitable decisions based on consistent management of prices and margins within your chemicals and service portfolio – across all sales channels. Customer-Centric Sales and Marketing Fluctuating raw material prices, capital- intensive assets, complex supply chains, regulatory requirements, and mass customization of products – along with reduced lifecycles – have put margins in the chemical industry under severe pressure. Securing margins requires market and customer segmentation, streamlined sales operations, and managing prices and margins along all sales channels – from pipeline planning to order fulfillment. Securing margins also requires real-time visibility into overall sales performance and profitability, by customer or product. In addition, CEOs recognize that first-rate, segmented services provide an excellent approach to enhance customer profitability and loyalty, increase share of wallet, and ultimately differentiate them from the competition.17% Higher percentage of field sales achieving quota when sales pipeline is optimized for cross and add-on opportunities to be proactively pursued Source: SAP Performance Benchmarking Priorities Sales and Marketing SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us SAP Solutions
  15. 15. © 2013 SAP AG15 / 40 Benefits  Increase margins  Reduce costs to serve  Increase pipeline  Enhance customer retention  Improve share of wallet Customer-Centric Sales and Marketing Lower average sales cycle length where organizations have high maturity in quotation and order- management processes Source: SAP Performance Benchmarking Actively manage and enhance the value of your customer portfolio, improve share of wallet with customers, and secure sustainable margins. Bring visibility into product and service costs along the price waterfall. Use customer, product, and channel segmentation strategies to drive sustainable margins. Price and Margin Management Improve revenue and profitability through better pricing decisions and implementation of pricing policies across all organizations and channels. Order and Contract Management Help ensure flawless order processing and billing, through alignment of terms and conditions of orders with contracts – along all sales channels. Customer Service and Support Enable the service organization to implement an integrated service process, which will enhance productivity while increasing customer loyalty. 39% Executive Summary SAP Solutions SAP Innovations References Contact Us SAP Solutions Priorities Sales and Marketing SAP Solutions
  16. 16. © 2013 SAP AG16 / 40 Talent is a true competitive advantage today and is critical when aligning business strategy and execution. Best-run organizations achieve profitable growth by leveraging their talent and out-innovating the competition. People and Talent For organizational growth and an agile response to business change, organizations must give people the knowledge and technology needed to facilitate innovation. They must also move into new markets, adapting to local practices and tapping the right local talent. In addition, they must identify and retain new talent acquired through mergers and acquisitions. Organizations that quickly respond with the right talent in the right places will have a unique advantage in the marketplace. 8% Higher employee engagement gained from implementing training programs that develop the workforce in line with organizational objectives Source: SAP Performance Benchmarking Priorities People and Talent SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us SAP Solutions
  17. 17. © 2013 SAP AG17 / 40 Benefits  Improve productivity and engagement  Gain real-time insight into business needs  Align people to business strategies  Support global expansion into new markets People and Talent Lower time to hire in large organizations where recruiting system automates candidate administration Source: SAP Performance Benchmarking The new world of work. Enable growth and sustainability by providing choice in the delivery of HR processes and services. Increase value, employee satisfaction, and business performance. Core Human Resources and Payroll Consolidate HR and payroll processes on a common global platform for better workforce data and legal compliance. Talent Management Improve strategic alignment, increase productivity, and accelerate results by identifying, developing,motivating,and retaining talent. Time and Attendance Management Streamline time-management processes to enhance resource effectiveness and visibility into and control over labor costs. Workforce Planning and Analytics Identify and analyze talent gaps and streamline workforce planning for efficient and effective management of workforce demand and supply.16% Executive Summary SAP Solutions SAP Innovations References Contact Us SAP Solutions Priorities People and Talent SAP Solutions
  18. 18. © 2013 SAP AG18 / 40 CFOs implement best practices to help them strike the right balances between sound stewardship and value creation, entrepreneurship and caution, and the big picture and exacting detail. Finance Financial organizations are struggling to achieve excellence in one of the most difficult and volatile economies in modern history. Persistent challenges include ongoing market instability, ever-changing regulations, and creeping pressure on margins. As the speed of finance increases, so does the need for financial insight on the go – anytime, anyplace. In the office, financial executives must find ways to cut costs while strategically demonstrating the value of the financial organization to the larger company. More than ever, financial organizations need to employ best practices to help them achieve excellence. With the right solutions for finance, organizations can achieve excellence where it really counts – from streamlined regulatory compliance and effective risk management, to outperforming financial objectives, creating sustainable value, and delivering superior service.34% Higher operating margin for organizations where the cost accounting system supports cost analysis along multiple dimensions Source: SAP Performance Benchmarking Priorities Finance SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us SAP Solutions
  19. 19. © 2013 SAP AG19 / 40 Financial Performance Management Manage financial performance to execute organizational strategies and control costs. Accounting and Financial Close Help ensure a fast, accurate, and compliant close with less cost and effort. Treasury and Financial Risk Management Gain greater insight and control over complex processes for managing cash, liquidity, and risk. Collaborative Finance Operations Automate transactional processes for increased efficiency,effectiveness, collaboration, and service with lower cost. Enterprise Risk and Compliance Management Manage risk and compliance to protect revenue and optimize financial performance. Benefits  Promote compliance and mitigate risk  Exceed targets and create sustained value Finance Lower cycle time for forecast in organizations with access to a financial cockpit providing a timely view into a predefined set of key metrics Source: SAP Performance Benchmarking Despite sustained market volatility and greater demand for regulatory compliance, financial organizations are excelling through best practices. Organizations that have a 360-degree view of finance processes enable their people to collaborate more efficiently and use business insight more effectively. 24% Executive Summary SAP Solutions SAP Innovations References Contact Us SAP Solutions Priorities Finance SAP Solutions  Deliver superior service at reduced cost
  20. 20. © 2013 SAP AG20 / 40 While companies often focus on revenue, procurement savings can increase profits about five times more. The key to maximizing procurement’s success in cost performance is to deliver consistent quality, savings, and compliance over time. Procurement Procurement leaders set a baseline for success by implementing best practices, excelling in category expertise, and working with key stakeholders on cost-control programs. While savings are always a priority, new objectives have emerged as well. Procurement must manage supplier risk and performance, improve process efficiency, drive innovation, and drive sustainability best practices. Procurement teams need solutions that help them cut costs as well as add value. Solutions that support processes like spend analysis, sourcing, contract management, operational procurement, supplier information management, and risk and performance management must be available both on-premise and in the cloud. When coupled with an unparalleled business network, these solutions drive the kind of real- time insight and efficiency that’s possible only through close collaboration with key stakeholders in the network. 40% Higher average annual savings (direct) in organizations that operate a single, integrated procurement system Source: SAP Performance Benchmarking Priorities Procurement SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us SAP Solutions
  21. 21. © 2013 SAP AG21 / 40 Supplier Discovery and Lifecycle Management Find new suppliers through solutions by Ariba, an SAP company, and manage them using supplier relationship management solutions. Strategic Sourcing and Contracting Identify and act on sourcing opportunities and create low-risk supply contracts. Procurement and Order Collaboration Realize savings with compliant, user-friendly self-service procurement. Collaborating on the Ariba Network makes transactions more efficient. Collaborative Invoice to Pay Drive invoice automation and exception management with available dynamic discounting on the Ariba Network. Commodity Management Purchase commodities based on quotes from exchanges, automate price calculations, and streamline invoicing to preserve margins. Benefits  Optimize spend under management  Increase average annual savings  Decrease FTE per billion in spend Procurement Lower maverick spend (indirect) in companies where system monitors purchasing and provides an analysis of compliance-related purchasing activities Source: SAP Performance Benchmarking Drive sustainable savings while supporting innovation. Drive best practices in the source-to-pay process, on-premise or in the cloud, while leveraging the power of network collaboration for efficiency and insights. 40%  Drive innovation with suppliers  Reduce cost and risk with faster turnaround  Base commodity contracts on market conditions Executive Summary SAP Solutions SAP Innovations References Contact Us SAP Solutions Priorities Procurement SAP Solutions
  22. 22. © 2013 SAP AG22 / 40 Businesses enterprises should forge strategic business partnerships with their IT organizations by aligning goals. And business-oriented IT should maximize efficiency and responsiveness by running IT like a business. IT Management Research shows that lines of business want to ascertain the value of their IT investments, which means that IT organizations no longer decide alone which IT projects to fund. The challenge is that IT management is often seen as just running the technical landscape. To become more relevant to an enterprise, IT needs to reposition itself to run like a business. SAP offers an integrated portfolio of solutions to do just that. New technologies like mobile, in-memory, and cloud computing generate value to a business in an unprecedented way. However, these new technologies also make IT landscapes more complex, requiring more tools to manage them. By leveraging SAP solutions – along with following best practices – CIOs, CEOs, other executives, management, and employees can tap into and help ensure efficiency, continuity, and responsiveness, making IT more strategic to the business. 37% Higher percentage of profitable IT projects for organizations where IT is included early in the prioritization process Source: SAP Performance Benchmarking Priorities IT Management SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us SAP Solutions
  23. 23. © 2013 SAP AG23 / 40 Application Lifecycle Management Use application lifecycle management best practices, methods, and services based on Information Technology Infrastructure Library (ITIL). IT Infrastructure Management Monitor all network assets to integrate infrastructure and application lifecycles. IT Portfolio and Project Management Manage projects and align the portfolio to drive innovation efficiency. IT Service Management Align service-desk operations with service-level agreements (SLAs), resolve SLA incidents fast, and adopt ITIL best practices to meet evolving business goals. IT Strategy and Governance Track IT costs and risks and map risk and compliance activities to business impact. Benefits  Better alignment of IT to business strategy  Shorter IT delivery and business cycles  Maximize return on IT IT Management Evaluate and control risk, enable flexibility and scale, control and optimize costs, and maximize strategic value. Promote business continuity, drive efficiency, increase IT responsiveness to business objectives – with IT management solutions designed for any sized business.  Reduced system upgrade and operation costs  Lower risk mitigation cost and revenue loss  Lower critical business system downtime 1.9x More projects delivered on or below budget by IT management top performers Source: SAP Performance Benchmarking Executive Summary SAP Solutions SAP Innovations References Contact Us SAP Solutions Priorities IT Management SAP Solutions
  24. 24. © 2013 SAP AG24 / 40 Technology innovations transform companies. They can run in real time to improve information value, deliver new developer and user experiences, and unwire the business to innovate customer, partner, and employee engagement. Technology Solutions As users become savvier and their needs escalate, they expect real-time insight, using predictive analysis and real-time access to applications from the latest mobile devices. They expect all of these functionalities to be smoothly integrated with their favorite social platforms. While this savvy user base is expected to grow quickly, company data volumes are exploding. So now is the time to empower users with timely information delivered by an entirely new class of real-time applications and empower developers with a platform that delivers innovation faster than ever before. Technology solutions can mean the difference between surviving and thriving, and, with innovative technology, companies can thrive. They can enable the real-time enterprise to improve information value, empower users and developers, and unwire the business to innovate customer, partner, and employee collaboration. Priorities Technology Solutions SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us SAP Solutions “Cloud, social networking, mobility and the strategic use of information are the four forces that combine to create a new era of computing and new opportunities for business.” Source: Gartner, “SAP Is Driving Analytics, Cloud and Mobility in the Nexus of Forces,” Donald Feinberg, August 24, 2012 4
  25. 25. © 2013 SAP AG25 / 40 Analytics Optimize decision making, execution, and risk management with real-time, predictive analytics. Data Management Manage data with scalability, trust, and unmatched availability enterprise-wide. Application Development and Integration Develop applications and innovation rapidly in a mobile, always-on world of collaborative business networks for secure, cloud-scale applications. Enterprise Mobility Unwire employees, customers, and partners with proven mobile solutions Consumer Experience Boost productivity and competitiveness with real-time, innovative consumer applications. SAP HANA Platform Use in-memory technology to improveapplications, planning, and predictive and sentiment analysis. Benefits  Operate your business in real time  Reduce time to value and speed up innovation Technology Solutions Technologies to drive change and help your business thrive. SAP solutions enable the real-time enterprise, empower new experiences, and unwire the business.  Turn data into an enterprise asset  Unwire the business to innovate engagement Executive Summary SAP Solutions SAP Innovations References Contact Us SAP Solutions Priorities Technology Solutions SAP Solutions “Through 2015, organizations integrating high-value, diverse, new information types and sources into a coherent information manage- ment infrastructure will out- perform their industry peers financially by more than 20%.” Source: Gartner, “Hype Cycle for Information Infrastructure, 2012,” Michael Blechar, July 31, 2012 20%
  26. 26. © 2013 SAP AG26 / 40 In-memory computing powered by the SAP HANA platform allows you to maximize asset performance and utilization by mining, consolidating, and analyzing plant and asset data. Respond rapidly to changing demand and supply patterns by analyzing multiple what-if scenarios during sales and operations planning meetings. Quickly assess impacts on products and revenue triggered by changes in regional or local regulations. Mobile technology helps you drive efficiency and safety across your plant operations and maintenance activities. Track and trace the status of shipments including quality parameters of shipped products, and speed up sales cycles by providing instant information to sales reps when it’s needed. Analytics help you gain real-time insight into the performance of your manufacturing plants via preconfigured dashboards. Immediately gain visibility and respond to unexpected supply chain events, and assess the overall status and adherence to REACH regulations and other compliance programs. Cloud-based solutions help you gain operational continuity, so you can secure revenue streams and brand reputation and minimize noncompliance risk. The opportunities for chemical companies to transform business models and position for sustainable growth have never been better. New technologies like in-memory computing, mobile technology, and cloud deployment can speed decision making and business execution. SAP Innovations 53% Of organizations report a big gap between the availability of Big Data and their ability to analyze it for insights Source: SAP Performance Benchmarking Applications SAP Innovations SAP HANA Mobile Executive Summary SAP Solutions SAP Innovations References Contact Us Analytics Cloud
  27. 27. © 2013 SAP AG27 / 40 Manufacturing Performance and Asset Utilization SAP Business Suite powered by SAP HANA simplifies mining, analysis, and federation of asset and maintenance data to drive continuous improvement and operational excellence. You can boost asset performance and operational continuity by enabling advanced maintenance planning strategies. Complex and Volatile Supply Chains SAP Business Suite powered by SAP HANA enables real-time decision making on market opportunities, capacity and demand fluctuations, and supply-chain interruptions. You can simplify IT by combining analytics and transactions for reduced total cost of ownership. Customer-Centric Sales and Marketing SAP Business Suite powered by SAP HANA provides real-time customer and product profitability insights into the hands of sales personnel to help drive more profitable revenue streams from the start. With customer, product, and asset-related data available to sales and field representatives at their point of need, your workforce is immediately more productive. And the solution can help you transform from your business-to-business oriented sales and service processes to a more business-to-consumer model. SAP Business Suite software is powered by SAP HANA and allows you to boost competitiveness by unlocking new growth opportunities. In addition you can boost responsiveness by driving business at the speed of the market, and boost productivity by empowering people to decide and act in the business moment. SAP Business Suite Powered by SAP HANA Executive Summary SAP Solutions SAP Innovations References Contact Us Applications SAP Innovations SAP HANA Mobile Analytics Cloud
  28. 28. © 2013 SAP AG28 / 40 In-memory computing solutions from SAP, powered by the SAP HANA platform, can help you make intelligent decisions at every level and across every business process. By speeding up analysis of your Big Data – requiring only seconds as opposed to days – you can complete order fulfillment faster and cheaper or optimize supply chain operations in real time. By rapidly processing the huge volumes of data stored in your plant-floor and maintenance systems, SAP in-memory computing technology can help you enhance the safety, availability, and performance of your manufacturing operations. You can intelligently automate the myriad compliance and reporting requirements required for every substance in every product and rapidly respond to the different compliance and reporting needs of new markets and segments. With the ability to run complex simulations using live transaction data the second it’s created, SAP solutions powered by SAP HANA can help you improve margins. You can instantly simulate the impact of raw material price changes on customer or product profitability or improve financial performance monitoring with faster, more granular financial consolidation and reporting. Chemical companies must consolidate and analyze huge data volumes from multinational supply chains, business units, and plants. With increasing regulatory requirements, rapidly changing customer demands, and mass customization, gaining real-time insight into your Big Data is crucial. SAP HANA 40% Greater ability to utilize Big Data to gain insights with a well-established analytics and data-modeling center of excellence Source: SAPPerformance Benchmarking Executive Summary SAP Solutions SAP Innovations References Contact Us Applications SAP Innovations SAP HANA Mobile Analytics Cloud
  29. 29. © 2013 SAP AG29 / 40 In manufacturing, you can enhance safety and productivity in the plant with instant information about assets, operations, and risks – ultimately supporting operational continuity and performance. Enterprise mobility helps you mitigate supply chain disruptions by accurately and instantly tracking, tracing, and authenticating goods and shipments, including their physical conditions, and you can initiate corrective actions in case of unexpected events. In warehouse operations, enterprise mobility helps ensure optimal use of resources by providing real-time visibility into product, storage, and task information at the point of work. Delivering real-time, targeted, personalized product and service information anytime, anywhere, mobile technology helps you bring customers closer, build loyalty, and boost sales. Chemical companies must adapt to a changing world and bring enterprise mobility to business with solutions to transform their value chains. Enterprise mobility can help integrate new operations, mitigate supply chain risks, prevent incidents, and redefine collaboration with partners and customers. Mobile 40% Higher employee productivity where mobile access is provided to employees across all levels Source: SAPPerformance Benchmarking Executive Summary SAP Solutions SAP Innovations References Contact Us Applications SAP Innovations SAP HANA Mobile Analytics Cloud
  30. 30. © 2013 SAP AG30 / 40 Analytics solutions from SAP – with live dashboard-driven performance metrics – can provide manufacturing planners and plant operators with the real-time insight they need to optimize everything from asset and plant performance to batch manufacturing. Your operations teams can sharpen your competitive advantage by bringing new speed and agility to your global supply chain. They can analyze and drill down on critical data anywhere along your supply chain and respond rapidly to unexpected events, develop contingency plans, and mitigate the risk of supply chain disruptions. You can further reduce the risks inherent in new product rollouts. Whether it’s the risk of regulatory noncompliance or a ramp-up delay, analytics solutions from SAP can help product development specialists conduct data-driven analysis of the status and performance of products under REACH regulations and other compliance programs. The software can also help your sales and other executives manage the business – and improve profitability – on a daily basis by making product-mix decisions that maximize revenue and margins. In today’s dynamic business environment, analytics are pivotal to support real-time, enterprise-wide business agility. Opportunities must be proactively balanced against risks, and, to maximize profitability, all employees need to understand the financial impacts of their decisions before they act. Analytics 53% More employees leveraging analytical information from BI systems providing access to advanced analysis tools without requiring technical expertise Source: SAP Performance Benchmarking Executive Summary SAP Solutions SAP Innovations References Contact Us Applications SAP Innovations SAP HANA Mobile Analytics Cloud
  31. 31. © 2013 SAP AG31 / 40 Cloud solutions from SAP can help you tap into growth opportunities in emerging markets. You can bring plant employees up to speed quickly, while still enabling safe operations and cost control. Newly acquired subsidiaries and contract manufacturers can be ramped up quickly, thanks to customized solutions that are preassembled and ready for deployment in the cloud. You can integrate and collaborate with your entire global supply, production, and customer network to control costs and speed execution. And you can maintain strict and centralized control of all of your compliance activities. You can proactively manage regulatory content, permits, and legally prescribed emission thresholds across the entire organization in a cost-efficient way. SAP software also provides preconfigured sustainability reports, following Global Reporting Initiative standards, to increase universally recognized brand and stakeholder recognition. The speed and flexibility offered by cloud computing is creating new opportunities for best-run chemical companies. Cloud applications from SAP and the open SAP HANA application cloud allow companies to build differentiating solutions at the point of engagement – establishing nimble global business networks or connecting faster and more directly with customers. Cloud 85% Believe cloud computing will have a major impact on their organization, through efficiencies, innovation, or competitive differentiation Source: SAP Performance Benchmarking Executive Summary SAP Solutions SAP Innovations References Contact Us Applications SAP Innovations SAP HANA Mobile Analytics Cloud
  32. 32. © 2013 SAP AG32 / 40 Ten of the top 10 and 97 of the top 100 chemical companies run SAP. Best-Run Customers Executive Summary SAP Solutions SAP Innovations References Contact Us Best-Run Customers Air Products Braskem Perstorp Why SAP? Novus
  33. 33. © 2013 SAP AG33 / 40 SAP co-innovates with leading chemical companies through the Chemical Executive Advisory Council to constantly deliver new enhancements across the value chain: from product safety and stewardship to supply chain planning and execution. Customer Co-Innovation Chemical Executive Advisory Council CIOs of top chemical companies share innovation, technology requirements, and best practices to succeed in a more volatile, complex market. Co-innovation partners Consulting and system integration partners. Value added resellers for supply chain optimization, price and margin management, enterprise content management, and the like. Executive Summary SAP Solutions SAP Innovations References Contact Us Best-Run Customers Air Products Braskem Perstorp Why SAP? Novus
  34. 34. © 2013 SAP AG34 / 40 “Now that technicians have actual information from our central system, we can react to customer requirements more precisely, give technicians nearly real-time information, and integrate PDA information with our portal.” José Antonio Garcia Espinoso, Project Leader, Air Products As a leading supplier of gases, chemicals, equipment, and services, Air Products serves a wide range of customers in industry segments including food and beverage, health and personal care, and transportation. To sustain business growth, it needed an integrated mobile solution to handle field data. The SAP Afaria mobile device management solution helped the European healthcare division of Air Products boost field productivity and better meet customer and patient needs. Key Benefits  Better service through dependable data and a comprehensive view of the patient situation  Improved logistics distribution and reduced paperwork  Reduced system maintenance costs by replacing legacy system  Minimized costs by using a train-the-trainer approach and central team 50%Decreased document processing time 50%Decreased lost assets 5%Increased employee productivity (in product traceability) Executive Summary SAP Solutions SAP Innovations References Contact Us Best-Run Customers Air Products Braskem Perstorp Why SAP? Novus
  35. 35. © 2013 SAP AG35 / 40 “The SAP solution implementation has had a strong impact on how Braskem fulfills customer demands, thanks to improved inventory management. The return on the investment has been extremely fast.” Roger Ueno, Processes and Systems, Braskem Braskem was created by the merger of several Brazilian petrochemical firms. It provides products and Services around thermoplastic resin and green polyethylene, produced from sugar cane instead of oil derivatives. Braskem optimized supply chain processes, increased sales forecast accuracy, and reduced costs for its vinyl business after implementing the global availability to promise functionality (GATP) in the SAP Advanced Planning & Optimization component. Key Benefits  Increased the accuracy of sales forecasts through better inventory management  Boosted customer satisfaction through faster fulfillment of orders  Reduced costs in logistics and supply chain management 90%Reduction in inefficiency-related logistics costs 18%Increase in sales forecast accuracy $3million Value generated in first year after implementation Executive Summary SAP Solutions SAP Innovations References Contact Us Best-Run Customers Air Products Braskem Perstorp Why SAP? Novus
  36. 36. © 2013 SAP AG36 / 40 “The ultimate way to create value is to identify and deliver key initiatives that improve corporate performance by improving the performance of our KPIs. SAP Supply Chain Performance Management helps our organization focus on managing our core business KPIs versus looking at reports all day.” Alex Pierroutsakos, Global Chief Information Officer, Novus International Inc. Novus International is a global leader in developing animal health and nutrition solutions for livestock, poultry, companion animals, aquaculture, and people. Novus chose SAP to get visibility into operational, financial, and enterprise performance metrics to drive corporate goals and improve business processes via the SAP Supply Chain Performance Management analytic application. Sixteen key performance indicators are tracked to improve organic growth, product profitability, resource efficiency, and customer satisfaction while managing working capital. Key Benefits  Standardized business processes and improved performance, globally  Higher customer satisfaction from fewer supply chain bottlenecks  Fewer stock-outs and greater liquidity to optimize inventory level Greater Flexibility in building key performance indicators (KPIs) for enterprise-wide performance management Improved Decision making via faster access to clear performance metrics Better Ability to manage operations and take timely, proactive actions Executive Summary SAP Solutions SAP Innovations References Contact Us Best-Run Customers Air Products Braskem Perstorp Why SAP? Novus
  37. 37. © 2013 SAP AG37 / 40 “Not having an automated REACH compliance system is inconceivable to us now. Without the SAP Environment, Health, and Safety Management application we couldn’t manage our compliance obligations.” Edith Cerbelaud, Product Stewardship Manager, Perstorp Group Perstorp Group manufactures, imports, and uses specialty chemicals in coatings, aerospace, marine, engineering, and construction industry applications. Recently spun off as an independent subsidiary of Rhodia, Perstorp was still using the SAP ERP application of its parent corporation. Company executives viewed the REACH mandate as an opportunity to not only support compliance requirements but also to gain autonomy, build a centralized compliance solution, and improve communications with clients and suppliers. Key Benefits  Automated collection, processing, and assessment of compliance data  Reduced time needed to update safety data sheets and exposure scenarios  Improved product stewardship by enhancing data integrity 75%Reduction in IT operation costs 10%Productivity gain in REACH-related tasks 100%Avoidance of compliance-related trial costs Executive Summary SAP Solutions SAP Innovations References Contact Us Best-Run Customers Air Products Braskem Perstorp Why SAP? Novus
  38. 38. © 2013 SAP AG38 / 40 SAP for Chemicals solutions enable sustainable growth through safely optimizing asset performance, enabling reliable and profitable order fulfillment, and driving superior returns on product innovation. The solutions can be deployed flexibly, are highly scalable at low cost, and can be accessed anytime from anywhere, leveraging the latest technology innovations. Tightly Integrated Business Solutions SAP offers the most comprehensive portfolio of solutions for the chemical industry, enabling companies to focus their key business processes and activities in their extended network: on assets, operations, and customer-driven product innovation. Leveraging Key Breakthrough Innovations SAP solutions are based on the industry’s most innovative technologies, including the SAP HANA platform and mobile, analytics, and cloud solutions for optimized, more efficient business processes at the lowest possible cost. 40 Years of Delivering Value to the Industry The world’s leading chemical firms, across every major segment of the industry worldwide, rely on SAP solutions to drive sustainable growth, profitability, and value to their customers. Why SAP? Executive Summary SAP Solutions SAP Innovations References Contact Us Best-Run Customers Air Products Braskem Perstorp Why SAP? Novus
  39. 39. © 2013 SAP AG39 / 40 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 >> Visit sap.com/solutions/rds >> Visit scn.sap.com >> Executive Summary SAP Solutions SAP Innovations References Contact Us
  40. 40. Industry Executive Overview Chemicals SAP for Chemicals http://www54.sap.com/industries/chemicals.html https://twitter.com/SAP4chemicals http://scn.sap.com/community/chemicals http://www.youtube.com/user/SAPCommunities https://www.facebook.com/SapForChemicals © 2013 SAP AG CMP 23283 (13/02) Executive Summary SAP Solutions SAP Innovations References Contact Us
  41. 41. © 2013 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
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