The Innovation-Driven Enterprise
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The Innovation-Driven Enterprise

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The automotive industry faces new challenges - and opportunities for growth: geopolitical and demographic changes, sustainability, enterprise mobility, responsive supply networks, shortened ...

The automotive industry faces new challenges - and opportunities for growth: geopolitical and demographic changes, sustainability, enterprise mobility, responsive supply networks, shortened development cycles, and more savvy customers.

Traditionally long lead times from product conception to production need to be reimagined as automotive companies seek new ways to adapt and take advantage of changing market trends. The strategic priority is to innovate faster, increase efficiency across business operations, and manufacture the vehicles that customers want.

To better satisfy customers’ changing needs and tastes, automotive companies need to transform into agile businesses that bring desirable new products to market quickly and profitably - while delivering customer value.

SAP offers solutions, best practices, and technology to orchestrate your key business processes - so you can focus on becoming a profitable, best-run company.

“Big Data”, cloud computing, mobile solutions, and analytics applications support the market-driven transformation required to prosper, integrating and accelerating business throughout the automotive value chain.

Find out how leading automotive companies take advantage of SAP technology and solutions to become consumer driven and power their growth.

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The Innovation-Driven Enterprise The Innovation-Driven Enterprise Presentation Transcript

  • Industry Executive Overview Automotive The Innovation-Driven Enterprise Executive Summary SAP Solutions SAP Innovations References Contact Us © 2013 SAP AG
  • © 2013 SAP AG2 / 42 New Trends Driving Automotive Industry The automotive industry faces new challenges  and opportunities for growth: geopolitical and demographic changes, sustainability, enterprise mobility, responsive supply networks, shortened development cycles, and more savvy customers. Traditionally long lead times from product conception to production need to be reimagined as automotive companies seek new ways to adapt and take advantage of changing market trends. The strategic priority is to innovate faster, increase efficiency across business operations, and manufacture the vehicles that customers want. To better satisfy customers’ changing needs and tastes, automotive companies need to transform into agile businesses that bring desirable new products to market quickly and profitably  while delivering customer value. SAP offers solutions, best practices, and technology to orchestrate your key business processes  so you can focus on becoming a profitable, best-run company. “Big Data”, cloud computing, mobile solutions, and analytics applications support the market-driven transformation required to prosper, integrating and accelerating business throughout the automotive value chain. Find out how leading automotive companies take advantage of SAP technology and solutions to become consumer driven and power their growth. Executive Summary SAP Solutions SAP Innovations References Contact Us The Innovation-Driven Enterprise Market Situation Transformation Through Technology Innovation Business Priorities SAP Innovations
  • © 2013 SAP AG3 / 42 To successfully grow market share automotive companies must:  Accelerate innovation  Enable collaboration and real-time insight  Manufacture efficiently, profitably, and sustainably and avoid disruption  Deliver a customer-centric buying and ownership experience Transforming Automotive The ability to increase capacity, enhance quality, cut costs, streamline the supply chain, and accelerate the launch of desirable vehicles is key to growing market share. Best-Run Automotive Executive Summary SAP Solutions SAP Innovations References Contact Us The Innovation-Driven Enterprise Market Situation Transformation Through Technology Innovation Business Priorities SAP Innovations
  • © 2013 SAP AG4 / 42 Best-run automotive companies meet or exceed their target metrics by focusing on the entire internal and external business lifecycle. This includes tracking all key performance indicators across engineering, manufacturing, sales, and service activities. Best-Run Automotive Priorities Understanding the value drivers for these priorities is key to becoming a best-run automotive company.  Collaborative Product Innovation  Manufacturing and Logistics  Responsive Supply Networks  Marketing Sales and Aftermarket  People and Talent  Finance  Procurement  IT Management Executive Summary SAP Solutions SAP Innovations References Contact Us The Innovation-Driven Enterprise Market Situation Transformation Through Technology Innovation Business Priorities SAP Innovations
  • © 2013 SAP AG5 / 42 Executive Summary SAP Solutions SAP Innovations References Contact Us The Innovation-Driven Enterprise 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.
  • © 2013 SAP AG6 / 42 SAP Innovations Automotive companies need to leverage technology in order to accelerate the pace of innovation. Big Data, analytics, enterprise mobility, and cloud computing are all key to the cost-effective delivery of sales and service excellence. SAP is investing heavily in the future of five distinct technology areas: applications, Big Data, analytics, mobility, and cloud computing. Integrated throughout the enterprise, these technologies can help transform automotive companies. When you can innovate faster, increase quality, manufacture efficiently, and deliver excellent sales and service, you can increase profitability and gain competitive advantage. Accelerating the pace of innovation requires insight and improved collaboration. SAP solutions for mobility and cloud computing extend your work platform and provide a flexible, secure working environment for global teams. Becoming more agile and efficient while avoiding disruptions across the extended value chain depends on close scrutiny of your key performance metrics. Running real-time analytics with the SAP HANA platform helps make the best use of all data, no matter the source. And the ability to exploit Big Data can be critical to successful customer interactions. Executive Summary SAP Solutions SAP Innovations References Contact Us The Innovation-Driven Enterprise Market Situation Transformation Through Technology Innovation Business Priorities SAP Innovations
  • © 2013 SAP AG7 / 42 SAP solutions can drive automotive industry transformation. Automotive Value Map Product Innovation SAP Solutions Manufacturing and Logistics Marketing, Sales and Aftermarket Responsive Supply Networks People and Talent Procurement Finance Technology Solutions IT Management Technology Solutions Marketing, Sales and Aftermarket Dealer Business Management Vehicle Sales Management Customer Service, Support, and Warranty Management Application Develop- ment and Integration SAP HANA Platform Collaborative Product Innovation Continuous Product and Service Innovation Integrated Product Development for Discrete Industries Embedded Product Compliance Manufacturing and Logistics Operational Procurement and Inbound Logistics for Direct Material Lean Manufacturing Make to Order Outbound Logistics Responsive Supply Networks Service Parts Management Transportation Management Supply Chain Execution 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 Multichannel Marketing Management Enterprise Mobility Consumer Experience Data ManagementAnalytics 3D Business Visualization Executive Summary SAP Solutions SAP Innovations References Contact Us
  • © 2013 SAP AG8 / 42 Higher new product revenue (as % of total revenue) for organizations that drive growth with continuous innovation Source: SAP Performance Benchmarking With intense global competition and ever-increasing customer demands, the ability to bring high quality, innovative products to market rapidly has become the key differentiator driving success for companies in the automotive industry. Collaborative Product Development The pace of innovation is accelerating. We have swiftly changed gears from the age of components to the age of innovative systems. Today, 80% of new innovation in automobiles is in electronics. Customers now want a vehicle experience that goes beyond mere transportation. Desirable vehicles feature new technologies as standard inclusions. With an automotive environment made up of global platforms and products that are designed and engineered by global teams, automotive companies need global access. This means driving high levels of collaboration and the ability to share data in real time. While trying to improve operational efficiencies, you also need to manage increasing safety standards and stringent environmental mandates. Vehicles must now meet new and evolving safety standards, consume less fuel, produce less pollution, and leave a smaller carbon footprint. 34% SAP Solutions Priorities SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us Product Innovation
  • © 2013 SAP AG9 / 42 Shorter time to market for new products in organizations that institute formal product life- cycle management process Source: SAP Performance Benchmarking Benefits  Accelerate time to market  Increase global collaboration  Unify consistent data  Improve quality  Streamline design changes Collaborative Product Innovation Deliver high quality, innovative, desirable vehicles, and accelerate time to market. Leverage software for global product design and engineering teams to collaborate and innovate in real time, and improve agility to master unexpected challenges. Continuous Product and Service Innovation Continuous product and service innovation can help you become more competitive, achieve profitable growth, and shorten time to market. Integrated Product Development for Discrete Industries Integrated product development can shorten the product development cycle, increase collaboration, minimize material costs, and enable a consistent and accurate source of product data. Embedded Product Compliance Embedded product compliance helps safeguard revenue and brand value by supporting the required information management and compliance controls in an end-to-end process. SAP Solutions Priorities SAP Solutions 14% Executive Summary SAP Solutions SAP Innovations References Contact Us Product Innovation
  • © 2013 SAP AG10 / 42 Lower manufacturing cost (% of total revenue) for organizations where execution systems and shop floor are integrated with enterprise applications Source: SAP Performance Benchmarking Under intense competitive pressure, automotive manufacturers need to reinvent themselves. Best-run companies deliver more performance by optimizing manufacturing processes, reducing inventories, and synchronizing logistics processes. Manufacturing and Logistics Productivity and manufacturing efficiency are critical to achieving profitability in the auto- motive industry. Compressed production schedules, uncertainty and risk in the supply chain, more stringent government regulations, and increasingly demanding customers all create the imperative to operate with speed and flexibility. Best-run automotive manufacturers achieve efficiency by aligning stakeholders and processes across engineering, supply chain, and manufacturing to create an integrated team that can swiftly respond to shifting requirements and demand signals. The result? You can increase manufacturing efficiency, minimize or even eliminate waste, improve manufacturing asset use, and contain product inventories – all to lower the cost of manufacturing. Plus, you can produce high quality, desirable vehicles and increase profitability. 10% SAP Solutions Priorities SAP Solutions Manufacturing and Logistics Executive Summary SAP Solutions SAP Innovations References Contact Us
  • © 2013 SAP AG11 / 42 Of automotive companies do not have automated line design, line balancing, demand management, lean execution, and kanban management Source: SAP Performance Benchmarking Benefits  Reduce manufacturing costs  Increase efficiency  Reduce inventories  Improve control and execution  Synchronize manufacturing and supply Manufacturing and Logistics Manufacture and distribute products efficiently and cost effectively. Drive profitability and win market share. Innovate and build high-quality products and vehicles that consumers want by adopting proven automotive best practices. Operational Procurement and Inbound Logistics for Direct Material Connect all supply processes across all departments to enable an efficient supply process. Lean Manufacturing Reduce build time, ensure effective use of production capacity, and minimize unproductive labor and resource consumption. Make to Order Enable manufacturing visibility and flexibility to produce highly variant products. Outbound Logistics Optimize the flow of goods by matching demand and supply. 67% Priorities SAP Solutions SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us Manufacturing and Logistics
  • © 2013 SAP AG12 / 42 Higher forecast accuracy for organizations that collaborate with external business partners (contract manufacturer, suppliers, and so on) Source: SAP Performance Benchmarking Automotive companies depend on a complex and interdependent, multitiered global supply network. Best-run automotive companies collaborate transparently across the supply chain to reduce costs, optimize plans, and avoid disruption. Responsive Supply Networks Automotive OEMs and suppliers face ever- increasing complexity and interdependence in their global supply chains. Tremendous volatil- ity – both in the availability of raw materials and in price fluctuations – constantly challenges the efficacy of this supply chain. To mitigate these pressures without increasing the cost to the consumer, you are compelled to focus on integrating your supply chains. You need to create transparency so you can respond to variances in supply and price as well as recognize and mitigate supply chain events that could disrupt the flow of materials. By leveraging clear insight, you can take advantage of emerging opportunities. Early and accurate understanding of performance and risk is critical to enabling the optimal flow of materials to production. Only companies with this accurate and early insight will be better positioned to drive operational excellence. 7% Priorities Responsive Supply Networks SAP Solutions SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us
  • © 2013 SAP AG13 / 42 Lower transportation spend (% of revenue) for organizations that collaborate with contractors and suppliers to get visibility into supply situation Source: SAP Performance Benchmarking Benefits  Optimize supply chain performance  Increase efficiency  Manage transportation activities and spend  Mitigate risk and volatility  Improve service levels and reduce costs  Ensure smooth material flows Responsive Supply Networks Optimize efficiency and drive down cost and risk in global supply networks. Integrate supply chain processes and networks to deliver real-time visibility into key performance metrics that help you detect and avoid risks. Service Parts Management Service parts management provides real-time visibility into service parts inventory to meet customer service levels, maximize inventory turnover, and minimize costs. Transportation Management Transportation management helps you manage spend and optimize accurate order fulfillment by integrating all aspects of the transportation process. Supply Chain Execution Supply chain execution enables you to integrate the business processes required to manage activities related to supply, inventory, and demand for better visibility. Priorities SAP Solutions 11% SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us Responsive Supply Networks
  • © 2013 SAP AG14 / 42 Of organizations have a 360-degree view of customers to optimize interactions in marketing Source: SAP Performance Benchmarking Automotive customers are sophisticated, well informed, and have high expectations of the purchasing and ownership experience. Best-run automotive companies leverage 360-degree views of customers and vehicles to meet these expectations. Marketing, Sales and Aftermarket Competition for market share is at an all-time high with unprecedented pressure to increase customer satisfaction and make sales and service processes more efficient. While there’s enormous growth potential in emerging markets as they rapidly expand, mature markets continue to stagnate. Customers have access to more information and choice than ever before and are becoming increasingly fickle and brand agnostic. With customers tending to keep their vehicles longer in mature markets, the erosion of new vehicle sales opportunities is counterbalanced by new opportunities to build servicing and repair business outside of the initial warranty period. It is therefore more crucial now to leverage customer-centric systems that provide visibility into all aspects of the buying and ownership experience, based on a complete view of both customers and vehicles. 16% Priorities SAP Solutions SAP Solutions Marketing, Sales and Aftermarket Executive Summary SAP Solutions SAP Innovations References Contact Us
  • © 2013 SAP AG15 / 42 Higher customer satisfaction for top 25% of organizations compared to average organizations Source: SAP Performance Benchmarking Benefits  Increase market share  Improve customer satisfaction  Increase customer loyalty  Deliver positive customer experiences  Improve sales and service profitability  Enhance your customer and vehicle knowledge Marketing, Sales and Aftermarket Increase customer satisfaction, retention, and market share. Excellence in sales and service operations requires a 360-degree view of vehicles and customers in order to deliver a positive buying and ownership experience. Dealer Business Management Enable customer-centric and efficient dealership operations with horizontal and vertical process integration. Vehicle Sales Management Deliver full visibility throughout the entire vehicle distribution chain. Customer Service, Support, and Warranty Management Provide outstanding service and support to differentiate your company from the competition and build true brand advocates among your customers. Multichannel Marketing Management Leverage customer segmentation strategies and target marketing tactics to grow market share. 14% Priorities SAP Solutions SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us Marketing, Sales and Aftermarket
  • © 2013 SAP AG16 / 42 Lower employee turnover driven by analyzing workforce data to design, implement, monitor workforce optimization strategies Source: SAP Performance Benchmarking Effectively aligning business strategy and execution for a competitive edge requires the best people and talent. Best-run automotive companies leave the competition behind and achieve profitable growth by utilizing world- class talent. People and Talent To take advantage of the unprecedented changes and opportunities in the automotive industry, you need well-tuned strategic thinking and expertise. Leading automotive companies deftly place the right talent in the right positions to gain unique advantage in the marketplace. It’s not just a matter of hiring and then retaining the right talent, but also providing employees with the knowledge, insight, and technology to deliver innovation. Automotive companies need to shift gears to take advantage of new markets, adapt to local business practices, and secure the best local talent. Mergers and acquisitions also provide a rich source of experienced and available talent that can help you succeed. 32% Priorities People and Talent SAP Solutions SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us
  • © 2013 SAP AG17 / 42 Lower costs for HR organizations with tight internal integration compared to organizations with fragmented HR environments Source: SAP Performance Benchmarking Benefits  Align employees with business strategies  Support expansion into new global markets  Improve engagement and productivity  Provide real-time insight into business needs People and Talent 38% The new technology worker. Increase employee value and satisfaction by combining global capabilities and real-time insight with mobile device support to improve business performance. Core Human Resources and Payroll Consolidate HR and payroll processes on a common global platform to enhance access to workforce data and improve legal compliance. Talent Management Improve strategic alignment of resources, increase productivity, and accelerate results by identifying, developing, motivating, and retaining talent. Time and Attendance Management Streamline time management processes, enhance resource effectiveness, and better control labor costs. Workforce Planning and Analytics Identify and understand talent gaps and streamline workforce planning to more effectively balance workforce demand and availability. Priorities SAP Solutions SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us People and Talent
  • © 2013 SAP AG18 / 42 Lower finance cost (% of revenue) for top 25% of organizations compared to average organizations Source: SAP Performance Benchmarking With sustained market volatility and growing pressure on margins, finance organizations must have best practices in place and keep a finger on the pulse of the business with up-to-the-minute financial insight delivered anytime, anywhere. Finance The automotive industry is undergoing a period of unprecedented change. Twentieth-century business practices are imploding under the weight of inefficient management processes, poor visibility, and disparate and unwieldy software applications. The scale of change has forced automotive professionals to look at the big picture and replace guesswork with real-time data and analytical insight to make more informed and strategic decisions. CEOs expect their finance executives to take a more strategic role in creating greater value for their companies to cut costs, conserve cash, and reduce debt. To meet these expectations, finance executives must balance stewardship with innovation and cautious entrepreneurship. They also need to recognize and assess the big picture, while maintaining incredible attention to detail. 59% Priorities Finance SAP Solutions SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us
  • © 2013 SAP AG19 / 42 Higher operating margin (in %) where financial systems provide historical and forward- looking views into financial and operational performance Source: SAP Performance Benchmarking Benefits  Ensure regulatory compliance  Achieve effective risk management  Outperform financial objectives  Create sustainable value  Deliver superior service at a reduced cost Finance Best practices help financial organizations excel. Achieve financial excellence and use 360-degree processes to create competitive advantage. Financial Performance Management Automate key business processes across your enterprise to increase efficiency, effectiveness, and service – all at a lower cost. Accounting and Financial Close Automate risk, compliance, and international trade activities to ensure regulatory compliance and effective risk management. Treasury and Financial Risk Management Leverage data and analytics to plan and manage budgeting and strategy. Collaborative Finance Operations Accelerate financial close across global enterprise locations. Enterprise Risk and Compliance Management Proactively identify the sources of financial data, while identifying risks and shortfalls. Priorities SAP Solutions 76% SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us Finance
  • © 2013 SAP AG20 / 42 Higher average annual savings for organizations that operate a single, integrated procurement system Source: SAP Performance Benchmarking While companies often focus on revenue, procurement savings can increase profits about five times more. The key to maximizing procurement’s success in this critical role 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 is always a priority, new objectives have emerged as well. Procurement must manage supplier risk and performance, improve process efficiency, drive innovation, and ensure sustainability practices. You need solutions that give you the tools to cut costs as well as add value, supporting processes including spend analysis, sourcing, contract management, operational procure- ment, supplier information management, and risk and performance management – available both on premise and in the cloud. These tools, when coupled with an unparalleled collaborative business network, drive real-time insight and efficiency that can only be delivered through the power of “many.” 30% Priorities Procurement SAP Solutions SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us
  • © 2013 SAP AG21 / 42 Higher strategically managed direct spend for organizations that operate a single, integrated procurement system Source: SAP Performance Benchmarking Benefits  Optimize spend under management  Increase average annual savings  Decrease FTEs per billion in spend  Drive innovation with suppliers  Reduce cost and risk with faster turnaround Procurement Drive sustainable savings while supporting innovation. Help ensure best practices in the source-to-pay process, on premise or in the cloud, while leveraging the power of network collaboration for efficiency and insight. Supplier Discovery and Lifecycle Management Find new suppliers through the Ariba Network, and manage these relationships through supplier management solutions. Strategic Sourcing and Contracting Identify and act on sourcing opportunities and create favorable, 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 Limit the impact of commodity price volatility, automate price calculations, gain visibility, and manage risks. Priorities SAP Solutions 11% SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us Procurement
  • © 2013 SAP AG22 / 42 Higher IT spend on strategic initiatives for organizations where IT architecture is an integral part of top-management business planning Source: SAP Performance Benchmarking Automakers and suppliers need to align IT with their business goals – to transform their IT organizations into a strategic business partner. Business-oriented IT management is all about maximizing efficiency and responsiveness. IT Management According to a recent study by Gartner, in an increasing number of companies, the IT organization is not alone in deciding to invest in IT projects. Other business units are now involved in driving IT investment decisions based on their business value. In many organizations, IT management is typically a matter of managing the technical IT landscape and systems. Yet new technologies such as mobility, in-memory, and cloud computing can bring value to the business in an unprecedented way. They can also make your IT landscape more complex and require additional IT management tools to support them. To master the business of IT, automotive companies need to adopt best practices and leverage a portfolio of solutions to ensure efficiency, business continuity, and responsiveness. With a new generation of technology from SAP, your IT organization can become more relevant and add strategic value to the enterprise. 34% Priorities IT Management SAP Solutions SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us
  • © 2013 SAP AG23 / 42 Lower IT spend as % of revenue for organizations that have established enterprise- wide streamlined IT and business process standards Source: SAP Performance Benchmarking Benefits  Align IT spend with business strategy  Shorten IT delivery cycles  Reduce IT maintenance budget  Minimize cost of system upgrade  Reduce cost of risk mitigation  Reduce downtime of business processes IT Management Evaluate and control IT risk, ensure flexibility and scale, control and optimize IT costs, and maximize strategic value from technology. Align IT spend with business priorities, drive efficiency, increase responsiveness, and ensure business continuity with a new generation of technology from SAP. Application Lifecycle Management Implement application lifecycle management processes, methodologies, and services to reduce total cost of ownership. IT Infrastructure Management Identify and monitor all network assets and drive an integrated infrastructure and application lifecycle process. IT Portfolio and Project Management Manage portfolios and projects from start to finish, drive innovation, and develop cross- functional processes across disparate systems. IT Service Management Align your service desk operations with service-level agreements. IT Strategy and Governance Automatically track and manage costs and risk across your IT landscape. 23% SAP Solutions Priorities SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us IT Management
  • © 2013 SAP AG24 / 42 “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 Automotive companies must drive business transformation through technology innovation. Organizations will thrive by improving access to information and unwiring their businesses to innovate with customers, partners, and employees. Technology Solutions As automotive professionals become more sophisticated users of data, their needs escalate. Up-to-the-minute insights, predictive analysis, and real-time access to applications from the latest mobile devices are all standard requirements. They expect all of these capabilities to seamlessly integrate with their preferred social platforms. The number of users expecting access is growing rapidly. At the same time, data volumes are exploding, while the window to capitalize on opportunities is shrinking. Automotive companies must leverage the available information and insights in an entirely new class of real-time applications. Developers must have a platform they can use to innovate faster than ever before. To speed ahead, auto manufacturers and suppliers must drive transformation through the innovative use of technology and enable the real-time enterprise to improve the value of information. 4 Priorities Technology Solutions SAP Solutions SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us
  • © 2013 SAP AG25 / 42 “Through 2015, organizations integrating high-value, diverse, new information types and sources into a coherent information management infrastructure will outperform their industry peers financially by more than 20%.” Source: Gartner, “Hype Cycle for Information Infrastructure, 2012,” Michael Blechar, July 31, 2012 Benefits  Operate your business in real time  Reduce time to value and speed up innovation  Turn data into an enterprise asset  Unwire business to support innovation, engagement Technology Solutions Drive change and help your business thrive. Enable the real-time enterprise by improving the value of information across the business with timely and predictive analytics – and unwire your employees, customers, and partners to collaborate and innovate more rapidly. Analytics Increase the value of data with real-time and predictive analytics and business intelligence. Data Management Manage critical data with scalability and performance. 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 your employees, customers, and partners with proven, highly rated mobile solutions. Consumer Experience Use real-time applications to increase productivity and competitiveness. 3D Business Visualization Reduce complexity, increase productivity, and improve quality with 3D-enriched processes and decision making. SAP HANA Platform Streamline applications, analytics, planning, and predictive and sentiment analysis on a single platform based on in-memory technology. 20% SAP Solutions Executive Summary SAP Solutions SAP Innovations References Contact Us Priorities Technology Solutions SAP Solutions
  • © 2013 SAP AG26 / 42 Of companies believe that the cloud will amplify and accelerate other technology trends such as enterprise mobility, Big Data, and analytics Source: SAP Performance Benchmarking With tough economic conditions and stagnant mature markets, automotive companies need to increase efficiency across the entire product lifecycle by speeding up product innovation times, improving quality, manufacturing profitably, and better satisfying customers. Data-driven knowledge is instrumental in driving a strategic advantage through more relevant and highly targeted marketing. With Big Data and powerful analytics, automotive companies can turn terabytes of information into a clear insight and competitive advantage. At the same time, mobile apps are enabling every aspect of your business to fun faster and more efficiently by providing employees with access to critical intelligence anytime, anywhere. Cloud computing is providing new ways to unlock extraordinary potential that allows businesses to run faster and better. SAP has been a leader in business IT innovation for 40 years. Today, new technologies will enable automotive businesses to better understand the needs of customers and ensure that business users have access to the insight they need to improve every aspect of enterprise operations. Ever-increasing consumer demands and global competition are driving dramatic changes in the automotive industry. To take advantage of new market dynamics, automotive companies need to embrace technology innovations that drive differentiation, competitive advantage, and market share. SAP Innovations 65% Applications SAP Innovations SAP HANA Mobile Analytics Cloud Executive Summary SAP Solutions SAP Innovations References Contact Us
  • © 2013 SAP AG27 / 42 Use SAP HANA to drive better, more efficient manufacturing and logistics processes and eliminate errors and disruptions. Achieve immediate access to complex inventory management data. With real-time inventory monitoring and management, you can reduce inventory and safety stock levels while avoiding out of stock disruptions. Cut costs with comprehensive and up-to-the-minute transparency on material demand and supply so that you only purchase materials and produce and distribute products when they’re actually required. Enhance supplier collaboration with immediate updates on demand. Optimal collaboration and data sharing with suppliers drives the ability to optimize products and processes. Synchronize demand and supply for global planning. Analyze and monitor vast amounts of data continuously and in real time to react to demand and supply volatility and maximize supply chain reliability and efficiency. Simulate “what if” scenarios in real time. By rapidly processing and analyzing information, you can gain competitive advantage by identifying customer trends and ways to improve manufacturing efficiency. SAP Business Suite software powered by SAP HANA enables automotive companies to optimize manufacturing and logistics processes by better managing material inventories and balancing supply with demand for innovative vehicles and products that meet or exceed customers’ expectations – all at optimal cost. SAP Business Suite Powered by SAP HANA SAP Innovations Executive Summary SAP Solutions SAP Innovations References Contact Us Applications SAP HANA Mobile Analytics Cloud
  • © 2013 SAP AG28 / 42 Global Engineering Process vast amounts of data to collaboratively speed up innovation, accurately determine cost, improve quality, and meet regulatory requirements, so you can reduce time to market for products that customers want. Manufacturing Gain faster insight from the vast amounts of data generated in manufacturing activities. Big Data solutions powered by SAP HANA can help improve operational efficiency and reduce manufacturing costs. Global Supply Networks Analyze and monitor vast amounts of data continuously and in real time to react to demand and supply volatility and maximize supply chain reliability and efficiency. Marketing, Sales, and Service Leverage the insights available from Big Data to understand customer sentiment. Deliver positive customer experiences by leveraging customer and vehicle data. An enormous amount of data is being generated and collected every second – creating significant opportunities for automotive companies. With SAP HANA, companies have the ability to rapidly process and analyze information for collaborative innovation, manufacturing efficiency, and customer insight. SAP HANA 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 Executive Summary SAP Solutions SAP Innovations References Contact Us Applications SAP HANA Mobile Analytics Cloud SAP Innovations
  • © 2013 SAP AG29 / 42 Higher operating margins where enterprise mobility is embedded in all business processes Source: SAP Performance Benchmarking Mobile first. Consumers and businesses alike all turn to mobile first. Consumers research and compare vehicles and make test-drive or service appointments. Businesses have untethered their employees from offices and desks by extending their business processes to mobile devices. Leveraging our mobile solutions can help you speed innovation and improve collaboration. Manufacturing and Operations Enhance the manufacturing process with fast and clear access to work instructions, changes in production flow, and quality issues. Supply Chain Use mobile solutions to monitor and optimize your supply chain and ensure smooth delivery. Rapidly respond to exceptions and possible disruptions, and increase your agility to quickly identify and take advantage of new opportunities. Sales and Service Optimize the customer experience with information at the point of interaction with the customer, wherever you are, whatever the time, and whatever the device. Mobile solutions makes business processes more efficient, timely, and cost effective in the automotive industry. Accessing actionable intelligence for engineer- ing, manufacturing, supply chain, and sales and service organizations, anytime and anywhere, drives true competitive advantage. Mobile 24% Executive Summary SAP Solutions SAP Innovations References Contact Us Applications SAP HANA Mobile Analytics Cloud SAP Innovations
  • © 2013 SAP AG30 / 42 Higher inventory turns with warehouse analytics Source: SAP Performance Benchmarking Automakers must leverage everything at their disposal to shift into the fast lane. Analytics solutions from SAP provide visualization across relevant data to support optimal decision making. Engineering Use analytics to improve collaborative insight and support your engineering organization. Allow engineers to visualize complex data to rapidly bring new, high quality products to market. Manufacturing Enhance operations by better utilizing plant assets. Identify production hot spots that need closer attention 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, Sales, and Service Create a 360-degree understanding of customers and their vehicles to deliver a positive customer experience. Turbo-charging your business performance requires up-to-the-minute performance insight across your entire business. Automotive industry-specific performance analytics software helps you rapidly conquer your diverse – and unique – challenges. Analytics 26% Executive Summary SAP Solutions SAP Innovations References Contact Us Applications SAP HANA Mobile Analytics Cloud SAP Innovations
  • © 2013 SAP AG31 / 42 Of organizations believe that cloud will amplify other technology “megatrends” (for example, mobility, Big Data, analytics, and so on) Source: SAP Performance Benchmarking 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 your end-to-end business processes on demand, so you can 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. Cloud-based technologies can also be used to enhance the ownership experience for customers who drive fuel-efficient, and environmentally-friendly passenger cars. The speed and flexibility offered by cloud computing creates new opportunities for best-run automotive companies. Cloud applications from SAP and the open SAP HANA Cloud platform allow companies to build differentiating vehicles, establish nimble global business networks and connect faster and more directly with customers. Cloud 65% Executive Summary SAP Solutions SAP Innovations References Contact Us Applications SAP HANA Mobile Analytics Cloud SAP Innovations
  • © 2013 SAP AG32 / 42 SAP customers represent 79% of Global 500 companies. SAP customers represent 85% of the top 100 most valued brands in the world. Our customers manufacture more than 77,000 automobiles per day. 7 of the Forbes 50 Most Admired Companies in the World are SAP automotive customers. 7 of the Forbes 100 Biggest Public Companies in the World are SAP automotive customers. Best-Run Customers Al-Mansour Automotive Best-Run Customers Dana Holding TMHU PSA Peugeot Citroën Valeo Why SAP? Executive Summary SAP Solutions SAP Innovations References Contact Us
  • © 2013 SAP AG33 / 42 SAP co-innovates with leading automotive companies using the global Automotive Executive Advisory Council to drive priorities. Its member companies spur co-innovations and enhancements across the entire automotive value chain. Customer Co-Innovation Automotive Executive Advisory Council The Automotive Executive Advisory Council enables C-level executives to discuss and guide new business innovations, technologies, and best practices to support best-run companies. Co-Innovation Partners Co-innovation workgroups of the Automotive Executive Advisory Council focus on in-memory computing, mobile solutions, and dealer business management in addition to engineering, manufacturing, and sales and service topics. 45% Of companies are regular members of the Automotive Executive Advisory Council Executive Summary SAP Solutions SAP Innovations References Contact Us Al-Mansour Automotive Dana Holding TMHU PSA Peugeot Citroën Valeo Why SAP? Best-Run Customers
  • © 2013 SAP AG34 / 42 Al-Mansour Automotive Company is one of Egypt’s largest importers, distributors, and retailers of motor vehicles, and is the sole distributor of General Motors products. The firm has a total market share of 27.7% and wanted to increase that penetration via initiatives to generate more sales and improve service. That’s why it turned to SAP Business Suite software and solutions from the SAP for Automotive solution portfolio. Key Benefits  Enabled growth plans without commensurate increase in headcount  Maintained highest operational key performance indicators of any regional GM distributor  Enhanced Inventory control  Improved customer satisfaction  Shortened distribution delivery times Improved customer satisfaction with reduced delivery times Remarkable productivity gains Streamlined processes and workflow Executive Summary SAP Solutions SAP Innovations References Contact Us Al-Mansour Automotive Dana Holding TMHU PSA Peugeot Citroën Valeo Why SAP? Best-Run Customers
  • © 2013 SAP AG35 / 42 Dana Holding Corporation, headquartered in Maumee, Ohio, is a global supplier of engineering, manufacturing, distribution, and service of drivetrain technologies, sealing systems, and thermal management solutions. Dana Holding Corporation chose the SAP ERP and the SAP Extended warehouse applications to bring European aftermarket business in-house after 10 years of outsourcing to improve service control and reduce costs. Key Benefits  Replacement of disparate systems with a single global solution  A single integrated system to support the entire international aftermarket distribution network  Closer customer relationships with improved satisfaction and sales  Greater visibility of operations to match supply and demand  Reduced costs and improved service levels 6Months implemen- tation time at a new distribution center with no unplanned down time for customers 15%Improvement in customer order fill rate (from 80% to 95%) 85%Reduction in customer orders past due within six months Executive Summary SAP Solutions SAP Innovations References Contact Us Al-Mansour Automotive Dana Holding TMHU PSA Peugeot Citroën Valeo Why SAP? Best-Run Customers
  • © 2013 SAP AG36 / 42 PSA Peugeot Citroën is Europe’s second-largest automaker and number seven globally, producing 3.2 million cars in 2009. PSA Peugeot Citroën wanted to improve productivity in its 28 manu- facturing facilities worldwide, 4 technical centers, and 1 tertiary site. PSA replaced its legacy plant maintenance applications with the SAP Enterprise Asset Management solution and developed standard business processes based on best practices. In the next few years, the solution will pay back PSA’s investment through heightened efficiency and a better spare-parts list. Key Benefits  Achieved productivity and organizational improvement throughout the plants  Reduced spare parts inventory  Eliminated data reentry  Achieved productivity and quality targets Improved preventative maintenance Increase equipment availability Production feedback loop to engineering Executive Summary SAP Solutions SAP Innovations References Contact Us Al-Mansour Automotive Dana Holding TMHU PSA Peugeot Citroën Valeo Why SAP? Best-Run Customers
  • © 2013 SAP AG37 / 42 As the country’s leading lift-truck supplier, Toyota Material Handling U.S.A. Inc. (TMHU) supports independent dealers nationwide. TMHU chose SAP software including the SAP Customer Relationship Management application to improve sales visibility and accuracy of dealer sales quotations. TMHU also gained efficiency in order processing and the management of its dealer discounts. Key Benefits  Increased win rates with integrated lead management, marketing, and analytics  Improved sales team productivity  Improved accuracy of sales quotations  Better visibility into sales pipelines and end-user pricing  Significant savings due to eliminating variance in dealer discounts 15%Improvement in market awareness 85%Reduction in order confirmation times 100%Accuracy of sales quotation and dealer discount spend Executive Summary SAP Solutions SAP Innovations References Contact Us Al-Mansour Automotive Dana Holding TMHU PSA Peugeot Citroën Valeo Why SAP? Best-Run Customers
  • © 2013 SAP AG38 / 42 Part of the Paris-based Valeo Group, Valeo Service Benelux B.V. supplies original equipment spare parts to automakers and replacement parts to the independent aftermarket. Valeo is aware that to maintain its strong market position, it needs to constantly improve customer service and operational efficiency. Very satisfied with its existing SAP ERP application, Valeo decided to implement SAP warehouse management functionality. Having the entire order-to-delivery process on a single platform would provide the necessary degree of control and traceability. Key Benefits  Improved stock and replenishment accuracy  Increased fill rate and eliminated second warehouse despite 25% increase in SKUs  Improved order and delivery traceability and improved customer satisfaction  Paper-based picking replaced by mobile terminals with increased accuracy and efficiency 99%Order and inventory accuracy 15%Improvement in fill rate 8%Fewer days in inventory Order to delivery reduced from next day to 4–5 hours Executive Summary SAP Solutions SAP Innovations References Contact Us Al-Mansour Automotive Dana Holding TMHU PSA Peugeot Citroën Valeo Why SAP? Best-Run Customers
  • © 2013 SAP AG39 / 42 SAP empowers automotive companies to accelerate product innovation, improve quality, reduce manufacturing costs, and sell and service vehicles more profitably. This helps drive market share growth in a highly competitive global market. Tightly integrated end-to-end business solutions SAP offers automotive companies a comprehensive and fully integrated portfolio of end-to-end solutions. Leveraging breakthrough innovations The SAP solution portfolio delivers a robust and innovative technology foundation for automotive companies and includes applications, in-memory computing, mobile solutions, analytics, and cloud solutions. The full portfolio optimizes business processes and drives efficiency at the lowest possible cost. 40 years of delivering value to the automotive industry The world’s most successful automotive manufacturers, suppliers, and sales and service organizations rely on SAP software to provide the foundation that drives performance and a competitive edge. Why SAP? Executive Summary SAP Solutions SAP Innovations References Contact Us Al-Mansour Automotive Dana Holding TMHU PSA Peugeot Citroën Valeo Why SAP? Best-Run Customers
  • © 2013 SAP AG40 / 42 The best-run automotive organizations rely on SAP: Why SAP? 79% of the Global Fortune 500 companies are SAP customers. 100% of the top-scoring companies in the Dow Jones Sustainability World Index rely on SAP software. 85% of the top 100 most valued brands in the world are SAP customers. 77,000 vehicles per day are manufactured by automotive companies that are SAP customers. 3,000-plus automotive companies worldwide rely on SAP. Al-Mansour Automotive Dana Holding TMHU PSA Peugeot Citroën Valeo Why SAP? Executive Summary SAP Solutions SAP Innovations References Contact Us Best-Run Customers
  • © 2013 SAP AG41 / 42 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
  • Industry Executive Overview Automotive Visit us online to find out more: Web: www.sap.com/industries/automotive Community: http://scn.sap.com/community/automotive Executive Summary SAP Solutions SAP Innovations References Contact Us © 2013 SAP AG CMP 23653 (13/02)
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