Delivering Real-Time Business Value
for High Tech
SAP Business Suite Powered by SAP HANA
July 2013 Public
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public
The real-time opportunity
Shorter product lifecycl...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 3Public
Becoming an innovation driven enterprise
Align bus...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 4Public
SAP Business Suite powered by SAP HANA
The next-ge...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 5Public
Industry value map for high tech
Enabling the inno...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 6Public
Product Innovation and
Sourcing
Project Portfolio ...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 7Public
Today
With SAP Business Suite on
SAP HANA
KPI impr...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 8Public
Today
With SAP Business Suite on
SAP HANA
KPI impr...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 9Public
Today
With SAP Business Suite on
SAP HANA
KPI impr...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 10Public
Today
With SAP Business Suite on
SAP HANA
KPI imp...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 11Public
Customer cases
Japanese
technology firm
 SAP HAN...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 12Public
Next step
Business scenario recommendation and va...
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Thank you
Contact information:
Dirk Wenzel
Senior Director...
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Appendix
with detailed customer cases
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 15Public
Customer case: Japanese technology firm
Summary v...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 16Public
Customer case: Japanese technology firm
SAP HANA ...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 17Public
Note: Use cases in the global use case repository...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 18Public
Note: Use cases in the global use case repository...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 19Public
Note: Use cases in the global use case repository...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 20Public
Note: Use cases in the global use case repository...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 21Public
Note: Use cases in the global use case repository...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 22Public
Customer case: European technology firm
Summary v...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 23Public
1 Short term
Finance: Fast financial close
(varia...
Upcoming SlideShare
Loading in …5
×

Delivering Real-Time Business Value for High Tech

557 views

Published on

This deck is a SoH Executive positioning document in 3 parts for High Tech

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
557
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
24
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Delivering Real-Time Business Value for High Tech

  1. 1. Delivering Real-Time Business Value for High Tech SAP Business Suite Powered by SAP HANA July 2013 Public
  2. 2. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public The real-time opportunity Shorter product lifecycles and increasingly demanding customers require high-tech companies to continuously innovate ways to align business operations with customer needs.  Create new and innovative products that excite customers  Respond rapidly to evolving trends  Develop flexible, efficient, and cost-effective business processes
  3. 3. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 3Public Becoming an innovation driven enterprise Align business operations with customer needs Bring enticing and relevant products to market rapidly • Predict trends and evolving customer needs • Co-innovate with customers, partners, and suppliers • Speed global rollout of products Drive profitable growth with flexible sales and revenue models • Develop customer intimacy in marketing, sales, and service • Improve agility and speed in campaigns and promotions • Simplify sales, usage, and payment across multiple channels (retail, Web, mobile) Respond to market dynamics in real time • Control complex multilevel supply chains • Optimize out-sourcing, in-sourcing, and near- sourcing • Personalize any product, service, and delivery model
  4. 4. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 4Public SAP Business Suite powered by SAP HANA The next-generation business platform Real-time business In-memory Business transactions Digital connections Collaborative business CloudSocial Big DataMobile One platform bringing it all together Advanced analytics
  5. 5. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 5Public Industry value map for high tech Enabling the innovation-driven enterprise Product Innovation and Sourcing Project Portfolio and Project Management Product Development and Compliance Strategic Sourcing Customer Service and Field Repair Multi Channel Support and Field Service Professional Services Engagement and Delivery Service Parts Management Multichannel Sales and Marketing Segmentation and Campaign Management Partner and Channel Management Sales Pipeline and Order Management Responsive Manufacturing and Fulfillment Production Scheduling and Efficient Manufacturing Customer Fulfillment and Logistics Demand-Driven Supply Chain Demand Sensing and Response Management Integrated Sales and Supply Chain Planning Collaborative Supply Management 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 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 Adaptive Pricing and Usage-Based Billing Technology Solutions Analytics Consumer ExperienceData Management Enterprise Mobility SAP HANA Platform Application Development and Integration
  6. 6. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 6Public Product Innovation and Sourcing Project Portfolio and Project Management Product Development and Compliance Strategic Sourcing Customer Service and Field Repair Multi Channel Support and Field Service Professional Services Engagement and Delivery Service Parts Management Multichannel Sales and Marketing Segmentation and Campaign Management Partner and Channel Management Sales Pipeline and Order Management Responsive Manufacturing and Fulfillment Production Scheduling and Efficient Manufacturing Customer Fulfillment and Logistics Demand-Driven Supply Chain Demand Sensing and Response Management Integrated Sales and Supply Chain Planning Collaborative Supply Management 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 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 Adaptive Pricing and Usage-Based Billing Technology Solutions Analytics Consumer ExperienceData Management Enterprise Mobility SAP HANA Platform Application Development and Integration Industry value map for high tech Real-time value for key end-to-end processes Highest real-time business value for high tech 1 3 2 4
  7. 7. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 7Public Today With SAP Business Suite on SAP HANA KPI improvements are high-level estimates and will have to be validated for each customer situation. Production scheduling and efficient manufacturing Business value for high-speed material planning  Decisions often based on periodic material requirements planning (MRP) runs and outdated information  Inability to replan quickly if conditions change due to long run times  No holistic production planning across all relevant production sites  50% reduction in MRP run time with high-speed reads  Faster reaction to demand changes  Faster propagation of demand information through the supply chain  Simulation of different what-if scenarios in real time  Increased use of stored procedures to accelerate calculations such as stock requirements list and where- used lists  Better synchronization of demand and supply for global cross-plant planning (and reduction of bullwhip effect)  Instant update on supply network collaboration with latest demand information Reduce out-of-stocks by 4% Decrease Limit inventory and safety stocks by 3% bullwhip effect
  8. 8. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 8Public Today With SAP Business Suite on SAP HANA KPI improvements are high-level estimates and will have to be validated for each customer situation. Integrated sales and supply chain planning Business value for supply chain monitoring  Lack of near real-time information  No ad hoc operational reporting  Time-consuming data loads in traditional reporting tools  Reporting, queries, dashboards that have to be created by each customer  Inability to run sub-daily planning jobs and analyze the results because of the long data preparation times  Inability to respond fast to ad hoc customer queries, which may result in lost sales  Decision support based on near real- time information  Out-of-the-box analytical reporting with streamlined data load  Predefined dashboards for different use cases (analytical workflows)  Advanced data retrieval and computing functionalities of SAP HANA optimize the reporting of supply chain planning data Reduce supply chain costs by 3% Optimize Increase inventory levels by 7% customer service level by 4%
  9. 9. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 9Public Today With SAP Business Suite on SAP HANA KPI improvements are high-level estimates and will have to be validated for each customer situation. Sales pipeline and order management Business value for sales  Difficult to distinguish profitable customers within the customer pool  Inability to identify gaps in the sales pipeline leading to missed targets  Need to extract actionable information from the enterprise-wide Big Data on customers to maximize the chance of a sale  Minimal insight into the buying preferences of customers within the social data context  Quick identification of profitable customers with account intelligence analytics  Faster transaction search capabilities  Complete transparency into the sales pipeline based on real-time information with unlimited drill-down functionalities  Optimization of sales territories by simulating large volumes of territory data for adequate coverage  Real-time analysis of Big Data to better understand buying patterns  Real-time access and assembly of all data, including social and sales data Increase profitability by 2% Decrease Improve cost of sales through balanced territories by 4% offer win rate
  10. 10. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 10Public Today With SAP Business Suite on SAP HANA KPI improvements are high-level estimates and will have to be validated for each customer situation. Product portfolio and project management Business value for accelerated product development  Time-consuming analysis and progress monitoring of complex and long-lasting projects  Poor resource productivity and project profitability  Inability to monitor all aspects of a project due to high volume of data and detached analytics  Inability to monitor project progress sufficiently and in a holistic manner to support decision processes  Deviations in costs, time, resources, or quality detected too late in the process to make decisions  Decisions to mitigate risks and opportunity costs taken too late  Improved run time of project monitoring reports  Combined analysis of financials and logistics data  Real-time access to large volumes of data  On-the-fly analysis, calculation, and decision making  Early insight into deviations and risks, enabling timely corrective measures Improve time to market for new products 3% Reduce Reduce cost impact of engineering changes 4% project failure
  11. 11. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 11Public Customer cases Japanese technology firm  SAP HANA software and SAP Business Suite on SAP HANA  Automated reporting  Inventory optimization  Predictive analytics  Inventory visibility European technology firm  SAP Business Suite on SAP HANA  Real-time inventory  Real-time material planning  Marketing and sales  Fast financial close Leading U.S. technology firm  SAP HANA platform and SAP Business Suite on SAP HANA  Variable margin analysis  Customer service excellence  Opportunity order analysis  Predictive analytics  Supplier network traceability  Predictive scoring $25 million Benefit over five years Annual benefit €85 million Five-year net value $152 million
  12. 12. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 12Public Next step Business scenario recommendation and value discovery workshop  SAP offers a proven methodology and approach to discover the customer-specific business improvement areas and quantify value potential.  We suggest such a workshop with your line-of-business and IT experts.  As a starting point, we recommend a performance and usage analysis of your current software system.
  13. 13. © 2013 SAP AG or an SAP affiliate company. All rights reserved. Thank you Contact information: Dirk Wenzel Senior Director, Global High Tech Solution Marketing 3010 Hillview Avenue, Bldg. 3 Palo Alto, CA 94304 dirk.wenzel@sap.com
  14. 14. © 2013 SAP AG or an SAP affiliate company. All rights reserved. Appendix with detailed customer cases
  15. 15. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 15Public Customer case: Japanese technology firm Summary validated scenarios Feasibility Businessvalue Legend LowHigh Low High Allocation optimization (NA) SAP Business Suite on SAP HANA SAP HANA products SAP HANA platform Predictive analytics (US$108k) Annual revenue: US$2 billion Automated reporting (US$1,168k) Inventory optimization (US$5,737k) Inventory visibility (US$672k) 1 Short term SCM Inventory optimization: Reduce inventory carrying costs and inventory obsolescence Inventory visibility: Cut down the days in inventory ‒ one-time benefit Allocation optimization: Reduce cycle time; improve alignment to market dynamics; lower business risk; improve ability to adapt to future business requirements ‒ for example, channel inventory 2 Medium term SCM: Automated reporting: Improve productivity and supply chain planning Predictive analytics: Prevent revenue leakage due to stock-outs 3 In evaluation Other functions: To be discussed in future discovery workshops SAP HANA use cases mapped to industry value map end-to-end solutions SAP HANA Platform: customer-specific SAP HANA products: SAP NetWeaver BW on SAP HANA, high-performance applications (HPAs), apps powered by SAP HANA SAP Business Suite on SAP HANA Scenario (business value) Phase – deployment road map
  16. 16. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 16Public Customer case: Japanese technology firm SAP HANA platform Results over five years Surplus US$22 million ROI 232% Pay-back period 21 months (4.468) (627) 6.490 6.490 1.276 (6.000) (4.000) (2.000) - 2.000 4.000 6.000 8.000 10.000 2013 Phase 1 Phase 2 Costs SoH Applications Platform Anything built on the platform that is customer specific ‒ new business processes and business models SAP NetWeaver BW on SAP HANA, HPAs, apps powered by SAP HANA – mapped to industry value map end-to-end solutions $ Currently available functionalities (SP0, 1, 2); 23 scenarios mapped to IVM E2E solutions; and planned functionalities (All of the end-to-end solutions on the industry value map are in scope.) Actual SAP customer business case Annual benefits, SAP HANA platform Annual benefits, SAP HANA products: US$1.3 million Annual benefits, SAP Business Suite on SAP HANA: US$6.5 million Estimated deployment costs Total transition cost: US$5 million SAP HANA platform SAP HANA products SAP Business Suite on SAP HANA More information: Koert Breebaart SoH = SAP Business Suite on SAP HANA
  17. 17. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 17Public Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation sessions and may not be completely validated. An electronics manufacturer ‒ automated reporting High tech Business context and goals  This manufacturer can improve the productivity of the supply chain planning team by automating reports and decision-making data needs based on real time SKU level reporting. This reduces manual consolidation of spreadsheets. Business challenges  The planning team is currently looking at sales data and stock inventory that is a few days old because of the manual steps required to create the reports. This negatively impacts the amount of work and the quality of decisions. Process innovations  Improved productivity of marketing forecasting. Contribution of SAP HANA  SAP NetWeaver Business Warehouse (SAP NetWeaver BW) on SAP HANA provides instant and automated reports to the planning team. Value drivers/KPIs  Improve productivity supply chain planning Innovation scope SAP HANA products (HPAs, apps) End-to-end (E2E) solution Integrated sales and supply chain planning Value potential 3 Feasibility 4 Low High 1 5 Low High 1 5
  18. 18. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 18Public Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation sessions and may not be completely validated. An electronics manufacturer ‒ inventory visibility High tech Business context and goals  Due to limitations on SKU level reporting on inventory, the company’s allocation of stocks is suboptimal and it keeps higher safety stocks than necessary. Improved supply chain planning based on predictive modeling on SKU level will help. Business challenges  Due to slow queries and data accuracy issues the planning team is not able to perform analysis and predictive modeling on SKU level. Process innovations  Near real-time visibility on inventory in all channels Contribution of SAP HANA  SAP NetWeaver BW on SAP HANA provides SKU level reports to improve management of inventories. Value drivers/KPIs  Cut down the days in inventory (one-time benefit). Innovation scope SAP HANA products (HPAs, apps) E2E solution Integrated sales and supply chain planning Value potential 4 Feasibility 3 Low High 1 5 Low High 1 5
  19. 19. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 19Public Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation sessions and may not be completely validated. An electronics manufacturer ‒ allocation optimization High tech Business context and goals  Decisions about allocation of products are not based on recent developments but rather on historical rules and are therefore suboptimal. Business challenges  Allocation rules are not dynamically linked to real-time inventory and sales data. Process innovations  Decision making on product allocation can be based on facts. Contribution of SAP HANA  SAP NetWeaver BW on SAP HANA provides SKU level reports to improve product allocation. Value drivers/KPIs  Reduce cycle time, Improve alignment to market dynamics, lower business risk, improve ability to adapt to future business requirements (for example, channel inventory). Innovation scope SAP HANA products (HPAs, apps) E2E solution Integrated sales and supply chain planning Value potential 4 Feasibility 4 Low High 1 5 Low High 1 5
  20. 20. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 20Public Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation sessions and may not be completely validated. An electronics manufacturer ‒ predictive analytics High tech Innovation scope SAP HANA products (HPAs, apps) E2E solution Integrated sales and supply chain planning Value potential 2 Feasibility 4 Low High 1 5 Low High 1 5 Business context and goals  This electronics manufacturer can increase revenues by reducing its out-of stock products in the stores. Improved supply chain planning based on predictive modeling will lead to improved allocation of goods and a better alignment with the manufacturers. Business challenges  Current data warehouse with historic sales data and stock inventory is updated by offline manual batch processes and prevents the planning team from performing real-time analysis. Process innovations  Near real-time simulation of marketing forecasting. Contribution of SAP HANA  SAP HANA boosts the performance of SAP NetWeaver BW, helping to overcome many of the limitations on forecasting. Value drivers/KPIs  Reduce revenue leakage due to stock-outs (% of revenue).
  21. 21. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 21Public Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation sessions and may not be completely validated. An electronics manufacturer ‒ inventory optimization High tech Innovation scope SAP HANA products (HPAs, apps) E2E solution Integrated sales and supply chain planning Value potential 5 Feasibility 3 Low High 1 5 Low High 1 5 Business context and goals  Due to limitations on SKU level reporting on inventory, the company’s allocation of products is suboptimal and it keeps higher safety stocks then necessary. Improved supply chain planning based on predictive modeling on SKU level will help. Business challenges  Due to slow queries and data accuracy issues, the planning team is not able to perform analysis and predictive modeling on SKU level. Process innovations  Near real-time visibility on inventory in all channels. Contribution of SAP HANA  SAP NetWeaver BW on SAP HANA provides SKU level reports to improve management of inventories. Value drivers/KPIs Reduce inventory carrying costs; reduce inventory obsolescence costs.
  22. 22. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 22Public Customer case: European technology firm Summary validated scenarios Feasibility Businessvalue Legend LowHigh Low High Real-time material planning (€8 million) SAP Business Suite on SAP HANA SAP HANA products SAP HANA platform Annual revenue: €5.9 billion Real-time inventory (€12 million) Fast financial close (€5.7 million) Marketing and sales (€55 million) 1 Short term CRM Marketing and sales Average annual fund overspend (in %); trade spending as a % of revenue; % of qualified leads closed annually; % of sales transactions where cross-sell/up-sell is offered SCM Real-time inventory Inventory carrying cost (% of revenue); overall supply chain planning cost (% of revenue); revenue loss due to stock-outs (in %) 2 Medium term SCM: Real-time material planning % production shutdowns due to missing parts; % purchased goods ordered late FIN Fast financial close % effort on working with audit related data (finance); audit cost as a % of revenue; days to close annual books (in days) 3 In evaluation Other functions – to be discussed in future discovery workshops SAP HANA Platform: customer-specific SAP HANA products: SAP NetWeaver BW on SAP HANA, high-performance applications (HPAs), apps powered by SAP HANA SAP Business Suite on SAP HANA Scenario (business value) SAP HANA use cases mapped to industry value map end-to-end solutions Phase – deployment road map
  23. 23. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 23Public 1 Short term Finance: Fast financial close (variable margin analysis) Sales: Insight-driven sales (opportunity order analysis) Marketing: Insight-driven marketing (Predictive scoring ‒ real-time segmentation, campaign optimization, and affinity analysis) Service: Insight-driven service (Customer service excellence ‒ mine ASUP data proactively) Sourcing: Supplier network traceability (strategic purchase optimization) 3 In evaluation Other functions – to be discussed in future discovery workshops Customer case: leading U.S. technology firm Summary validated scenarios Feasibility BusinessvalueLowHigh Low High Variable margin analysis (US$45 million) Predictive scoring (US$15 million) Annual revenue: US$6.2 billion Opportunity order analysis (US$15 million) Customer service excellence (US$37 million) Supplier network traceability (US$13 million) Legend SAP Business Suite on SAP HANA SAP HANA products SAP HANA platform Predictive analytics (US$108,000) SAP HANA Platform: customer-specific SAP HANA products: SAP NetWeaver BW on SAP HANA, high-performance applications (HPAs), apps powered by SAP HANA SAP Business Suite on SAP HANA Scenario (business value) SAP HANA use cases mapped to industry value map end-to-end solutions Phase – deployment road map

×