July 2013
Delivering Real-Time Business Value for
Industrial Machinery and Components
SAP Business Suite Powered by SAP HA...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public
The real-time opportunity
To remain competitive, i...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 3Public
Becoming an innovation-driven enterprise
Aligning ...
© 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
Industrial machinery and components (IM&C) value m...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 6Public
Industrial machinery and components value map
Focu...
© 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
Today
With SAP Business Suite on
SAP HANA
KPI imp...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 12Public
Today
With SAP Business Suite on
SAP HANA
KPI imp...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 13Public
Today
With SAP Business Suite on
SAP HANA
KPI imp...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 14Public
Today
With SAP Business Suite on
SAP HANA
KPI imp...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 15Public
Today
With SAP Business Suite on
SAP HANA
KPI imp...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 16Public
Customer cases
Japanese
technology firm
• SAP Bus...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 17Public
Next step
Business scenario recommendation and va...
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Thank you
© 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. 20Public
Breaking the limits at Würth
We have a slogan at ...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 21Public
Varian Medical Systems
SAP Business Suite on SAP ...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 22Public
SPIRIT Aerosystems
SAP Business Suite on SAP HANA...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 23Public
Kennametal: Drilling deeper and faster for
busine...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 24Public
Vaillant Group: Heating Up with Improved Products...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 25Public
Hilti AG
Faster reporting and analytics
Product: ...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 26Public
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 27Public
Customer case: Japanese technology firm
Summary o...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 28Public
Customer case: Japanese technology firm
SAP HANA ...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 29Public
Note: Use cases in the global use case repository...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 30Public
Note: Use cases in the global use case repository...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 31Public
Note: Use cases in the global use case repository...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 32Public
Customer case: European technology firm
Summary o...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 33Public
Customer case: European technology firm
SAP HANA ...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 34Public
1 Short term
Finance: Fast financial close
(varia...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 35Public
Customer case: Benefit quantification
SAP HANA pl...
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 36Public
Note: Use cases in the global use case repository...
Upcoming SlideShare
Loading in...5
×

Delivering Real-Time Business Value for Industrial Machinery and Components

213

Published on

This deck is a SoH Executive positioning document in 3 parts for Industrial Machinery and Components

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
213
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
16
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Delivering Real-Time Business Value for Industrial Machinery and Components

  1. 1. July 2013 Delivering Real-Time Business Value for Industrial Machinery and Components SAP Business Suite Powered by SAP HANA
  2. 2. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public The real-time opportunity To remain competitive, industrial machinery and components manufacturers must reduce sales cycle times for products and services, minimize time to profit for new projects, and decrease supply chain costs.  Innovate, optimize, and sell solutions tailored for your customers  Speed your supply chain and reduce costs  Achieve market differentiation via superior customer service
  3. 3. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 3Public Becoming an innovation-driven enterprise Aligning business operations with customer needs Innovate, optimize, and sell solutions tailored for your customers  Instant analysis of customer behavior and market trends  Tailored solutions for your customer accessing real-time detailed data  Complete customer insight in real time Speed your supply chain and reduce costs  Real-time response to shifts in demand and supply  Real-time visibility across entire supply chain and system landscape  Real-time “what-if” analysis and simulation Achieve market differentiation via superior customer service  Increased uptime and best-in-class service-level agreements  Better service through real-time equipment, asset, and maintenance predictive analytics  Reduced service cost through maintenance budget planning
  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 Industrial machinery and components (IM&C) value map Powering a solution provider network R & D/Engineering Integrated Product Development Continuous Product and Service Innovation Embedded Compliance in Product Development Aftermarket Service End-to-End Service Management Advanced Contract Management and Service-Centric Billing Service Parts Management Dealer Management Manufacturing Engineer-to-Order and Project Manufacturing Make-to-Order Manufacturing Outsourced Manufacturing Supply Chain Sales and Operations Business Planning Demand Driven Supply Chain Logistics and Order Fulfillment Sales Collaborative Sales Force Automation Sales of Configurable Products and Solutions Multichannel Management Adaptive Pricing and Usage Based Billing 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 Commercial Project Management 3D Business Visualization Asset Operations and Maintenance Technology Solutions Analytics Consumer ExperienceData Management Enterprise Mobility The SAP HANA Platform Application Development and Integration Quality Management and Compliance
  6. 6. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 6Public Industrial machinery and components value map Focus areas for SAP Business Suite on SAP HANA R & D/Engineering Integrated Product Development Continuous Product and Service Innovation Embedded Compliance in Product Development Aftermarket Service End-to-End Service Management Service Parts Management Dealer Management Manufacturing Engineer-to-Order and Project Manufacturing Make-to-Order Manufacturing Outsourced Manufacturing Supply Chain Sales and Operations Business Planning Demand-Driven Supply Chain Logistics and Order Fulfillment Sales Collaborative Sales Force Automation Sales of Configurable Products and Solutions Multichannel Management Adaptive Pricing and Usage Based Billing 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 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 Commercial Project Management 3D Business Visualization Asset Operations and Maintenance Technology Solutions Analytics Consumer ExperienceData Management Enterprise Mobility The SAP HANA Platform Application Development and Integration Quality Management and Compliance Highest value for IM&C 4 3 2 1 6 5 7 Advanced Contract Management and Service-Centric Billing Enterprise Risk and Compliance Management
  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. Make-to-order manufacturing Business value for material requirements planning (MRP)  MRP batch jobs cannot run within the available overnight batch job window  It’s not possible to process and ship orders in the same day because the overnight MRP run is required to create supply orders  Sales orders for complex orders cannot be confirmed to the customer in an acceptable amount of time  40%–60% reduction in MRP runtime, helping ensure that batch jobs complete in time  Ability to execute MRP run more frequently (such as during the day) to allow same-day orders to be produced and shipped  Ability to execute MRP run more frequently (such as during the day) to allow complex orders to be confirmed more quickly, providing a competitive differentiator Reduce out-of-stocks by 5% Decrease Limit inventory and safety stocks by 4% lost customer orders due to slow order processing
  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. Demand-driven supply chain Business value for supply chain monitoring  Casual business users have difficulty viewing and analyzing the demand plan  There is no ad hoc operational reporting  Data loads in traditional reporting tools are time-consuming  No ready-made reports exist for analyzing forecast accuracy  Analyzing supply chain management (SCM) master and transaction data in combination with enterprise resource planning (ERP) data is difficult  Business users able to view a near real-time version of the demand and supply plan via various intuitive user interface (UI) tools (including mobile devices)  Ready-made analytical reporting possible with streamlined data load  Predefined dashboards for different use cases (analytical workflows) including forecast accuracy  Ability to store SCM and ERP data on a single SAP HANA platform; can be readily combined/analyzed using via a common UI 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 of configurable products and solutions (1/2) Business value for sales  Distinguishing profitable customers from customer pool is difficult  There is no ability to identify gaps in sales pipeline leading to missed targets  Extracting actionable information from enterprise-wide customer information (Big Data) to maximize the chance of a sale is time-consuming  Minimal insight exists into buying preferences of customers in social data context  Ready identification of profitable customers with account intelligence analytics  Faster transaction search functionality  Complete transparency into sales pipeline based on real-time information with unlimited drill-down ability  Optimized sales territories enabled 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/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. Sales of configurable products and solutions (2/2) Business value for SAP Business Suite on SAP HANA  Analyzing sale of configurable products at right level of detail is time-consuming or impossible  There is no ability to analyze nonselling options and option combinations  Analyzing booking and backlog information for make-to-order products is difficult  Saving large, complex sales orders takes a significant amount of time  Easier to identify option combinations that are frequently sold and adjust supply chain delivery programs  Analysis of historical demand for options with subsecond response time  Real-time visibility to entire order to cash value stream at any level of detail/aggregation  Easier identification and ability to intelligent react to period-end revenue shortfalls  Increased user productivity and satisfaction by significantly reducing time required to save complex orders Reduce time required to analyze sales of configurable products from days to seconds Minimize Increase revenue guidance misses user productivity Note: Additional license materials or customer-specific project work may be required to realize this business scenario.
  11. 11. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 11Public 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 product development (1/2) Business value for project management (portfolio and project management)  Project members experience long waiting times when starting the project and task dashboards  Updates on multiple tasks are inefficient and time-consuming because project team members confirm tasks one by one to reduce waiting times  Searching for documents across projects takes a very long time for a large portfolio of projects  The process of finding projects, tasks, and phases by responsible project member is slow  Faster access to user tasks and projects  Accelerated access to project, task, and checklist item dashboards  Project team members able to confirm times, status, and dates and attach documents for several tasks at once  Increased user productivity  Accelerated search for documents  Faster ability to find projects or tasks by responsible project member Increase user productivity 20% Reduce Improve time for task confirmation 35% Search for documents and project elements 35%
  12. 12. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 12Public 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 product development (2/2) Business value for SAP Business Suite on SAP HANA  Analysis and progress monitoring of product development and engineering change (ECN) projects is time-consuming  Analyzing the cost impact of engineering changes is difficult  It is hard to determine when changes should be effected.  It is time-consuming and tedious for engineers to search for and select suitable parts/components during design  Improved query performance for portfolio and project management that dramatically reduces time and effort required to analyze projects  Intuitive access to large volumes of purchasing and planning data, allowing engineers to easily determine when changes should be effected  Real-time text string search and classification search allowing casual users to easily find materials (and metadata) with desired attributes, thus reducing likelihood that a duplicate part is created Increase efficiency in working with large projects Reduce Reduce cost impact of engineering changes frequency of duplicate part creation Note: Additional license materials or customer-specific project work may be required to realize this business scenario.
  13. 13. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 13Public Today With SAP Business Suite on SAP HANA KPI improvements are high-level estimates and will have to be validated for each customer situation. End-to-end service management Business value for SAP Business Suite on SAP HANA  It’s difficult to analyze large volumes of equipment service and failure data to identify patterns of product failure  There is need to combine real-time information from the field and connected assets with statistical analysis of historical data to allow smarter decisions  There is no ability to systematically analyze unstructured text data (such as from a sales technician field report) and combine with ERP or sensor data  Ability to perform complex causal analysis on equipment service and failure data to enable proactive maintenance  Predictive analysis on sensor data from connected assets  Early information about potential product failures  New business models leveraging machine data from sold devices  Ability to use sentiment analysis of unstructured text data to identity failure patterns  Combination of ERP service data with sensor data to enable predictive service Improve service-level compliance Create Increase new service offerings customer intimacy Note: Additional license materials or customer-specific project work may be required to realize this business scenario.
  14. 14. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 14Public Today With SAP Business Suite on SAP HANA KPI improvements are high-level estimates and will have to be validated for each customer situation. Engineer-to-order and project manufacturing Business value for project management (project systems)  Cross-project or program monitoring is challenging due to high data volumes  Deviations in costs, time, resources, or quality are seen too late in the process  There is no ability to monitor and analyze all aspects of large projects simultaneously and drill down into relevant details  Improved employee productivity and project profitability  Complete visibility across projects  Early insight in deviations and risks enabling timely corrective measures by alerting and highlighting deviations in real time  Modern, easy-to-consume UI  Real-time insight and easier-to- manipulate information  Complete progress monitoring along the project lifecycle Accelerated determination of exceptions and potential future deviations Improved Reduced decision support to take appropriate corrective measures in time project failure rate
  15. 15. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 15Public Today With SAP Business Suite on SAP HANA KPI improvements are high-level estimates and will have to be validated for each customer situation. Accounting and financial close Business value for entity financial close  The process is long-running with multiple steps to complete  Limited transparency precludes ability to manage central financial close  High numbers of involved systems and people require many handovers and reconciliations  Missing financial excellence results in a higher cost of equity at the capital market.  Lack of governance results in issues in ensuring a sound end-to-end closing process and effectiveness of internal controls  It is difficult to support parallel financial reporting standards and simulate scenarios  Automatic reconciliation with automated real-time matching  Single repository for company and corporate data  Common view across financials and logistics  Comprehensive simulation of org changes and alternate accounting methods  Deeper and faster insight down to the lowest level of detail – delivering quality at source, transparency, process efficiencies  Common view across financials and logistics – faster reconciliation and drill-through Eliminate period-end surprises Reduce Enhance month-end closing time by 44% compliance and accuracy
  16. 16. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 16Public Customer cases Japanese technology firm • SAP Business Suite and other applications powered by 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 Benefit over 5 years US$25 million Annual benefit €85 million 5-year net value US$152 million
  17. 17. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 17Public Next step Business scenario recommendation and value discovery workshop  SAP offers a proven methodology and approach to discover 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 system.
  18. 18. © 2013 SAP AG or an SAP affiliate company. All rights reserved. Thank you
  19. 19. © 2013 SAP AG or an SAP affiliate company. All rights reserved. Appendix with detailed customer cases
  20. 20. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 20Public Breaking the limits at Würth We have a slogan at Würth – it is: break your limits. That means that we always want to get better and better every day. The key value for the business is speeding up key processes such as MRP, order entry, and invoice management. Harald Holl, responsible for it infrastructure and data centers at Würth AT A GLANCE Objective Proof of concept Solution SAP ERP powered by SAP HANA Benefits Accelerate key processes (MRP, order entry, invoicing) and reduce total cost of ownership (TCO) Watch the video here
  21. 21. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 21Public Varian Medical Systems SAP Business Suite on SAP HANA Accelerate revenue forecasting process 60x Reduce Reduce time required for finan- cial close (planned) <1 day time required to save complex sales orders (planned) Business challenges  Monthly revenue forecasting process is a “major pain point” as it takes 3–5 hours to run and often has to be run several times to remove errors  Saving a sales order takes too long (“user gets a cup of coffee while waiting”)  Financial close takes too long (currently 5 days) Technical challenges  Integrate complex sales orders with project systems  Utilize complex user exit logic in sales order to create “mirror image” project systems work breakdown structure (WBS) element for each sales order line item Benefits  Improve accuracy and timeliness of revenue forecast provided to Wall Street by reducing time required for revenue forecasting process from 3–5 hours to 3–4 minutes  Hope to shorten the time required for financial close below the current 5 days  Plan to reduce the time required to save a sales order to increase user productivity and satisfaction Note: All information and figures were taken from Tom Rodden (director of applications at Varian Medical) roundtable discussion at SAPPHIRE NOW in 2013.
  22. 22. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 22Public SPIRIT Aerosystems SAP Business Suite on SAP HANA Accelerate Key finance report 7,000x Reduce Reduce WIP Production cycle time 30% 40% Business challenges  Timely information is lacking for “orders behind schedule” on the shop floor  Key finance report takes too long to run  Financial close takes too long Technical challenges  Huge amount of data from the shop floor systems  Transaction system (SAP ERP application) is good, but leaders don’t have the access to the information they need Benefits  Possibly save hundreds of millions of dollars by better utilizing existing production assets  Improve production throughput by increasing visibility to leaders on the shop floor  Free up working capital by reducing work in process (WIP) “We can save hundreds of millions of dollars by not investing in capital and moving more product through the factory . . . the SAP HANA tool gives us the opportunity to avoid additional capital expenditures.” James Cocca, CIO, Spirit Aerosystems Note: All information and figures were taken from James Cocca (CIO, Spirit Aerosystems) roundtable discussion at SAPPHIRE NOW in 2013.
  23. 23. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 23Public Kennametal: Drilling deeper and faster for business insight with SAP HANA
  24. 24. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 24Public Vaillant Group: Heating Up with Improved Products and Better Service Using SAP HANA Executive overview
  25. 25. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 25Public Hilti AG Faster reporting and analytics Product: SAP NetWeaver Business Warehouse (SAP NetWeaver BW) application powered by SAP HANA Business challenges  Need for (near) real-time, flexible, agile, anywhere access on any device  Call for simplification through visualization, participation via self-services Technical challenges  Ubiquity of data and consumerization of IT  Need for “people-driven” reporting within global standards  Higher latency time that killed information value  Replacing back-office sync Benefits  Provides analytical flexibility and agility for regional and national initiatives within a global standard reporting system with improved performance  Simplifies SAP NetWeaver BW architecture (CO-PA) with direct impact on support effort and agility  Enables successful of implementation of previously unthinkable Big Data scenarios  Enables simulation and forecast scenarios, which have been impossible before  Opens the door for sustainability and business transformation 1,000x faster reporting – from 77 minutes to 13 seconds 60% 4–10x improvement in data load time faster DataStore object (DSO) activation 2-second latency time: real- time replication (SAP Landscape Transformation replication server)
  26. 26. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 26Public
  27. 27. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 27Public Customer case: Japanese technology firm Summary of validated scenarios Feasibility Businessvalue Legend LowHigh Low High SAP Business Suite on SAP HANA SAP HANA products SAP HANA platform Phase – deployment road map Annual revenue: US$2.0 billion 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) Allocation optimization (NA) Predictive analytics (US$108,000) Automated reporting (US$1.2 million) Inventory optimization (US$5.7 million) Inventory visibility (US$672,000) 1 Short term SCM: Inventory optimization: reduce inventory carrying costs, inventory obsolescence Inventory visibility: cut down the days in inventory – one-time benefit Allocation optimization: reduced cycle time, improved alignment to market dynamics, lower business risk, ability to adept to future business requirements such as channel inventory 2 Medium term SCM: Automated reporting: improve productivity supply chain planning Predictive analytics: revenue leakage due to stock-outs – % of revenue 3 In evaluation Other functions – to be determined (TBD) in future discovery workshops SAP HANA use cases mapped to industry value map end-to-end solutions
  28. 28. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 28Public Customer case: Japanese technology firm SAP HANA platform Actual SAP customer business case Annual benefits, SAP HANA platform Annual benefits, applications powered by SAP HANA Annual benefits, SAP Business Suite on SAP HANA: US$7.16 million Estimated deployment costs Total transition cost: US$5 million $ -4.468 -627 5860 5860 130080 -6.000 -4.000 -2.000 0 2.000 4.000 6.000 8.000 2013 Phase 1 Phase 2 Costs SoH Applications Platform Results over 5 years – SAP Business Suite on SAP HANA only Surplus US$25 million ROI 500 %* Payback period 12 months* * To be validated SoH = SAP Business Suite on SAP HANA SAP HANA Platform: Anything built on the platform that is customer-specific – new business processes and business models SAP HANA products: SAP NetWeaver BW powered by SAP HANA; high-performance apps (HPAs); applications – mapped to inventory value map (IVM) end-to-end (E2E) solutions Currently available functionality (SP0, 1, 2) – 23 scenarios mapped to IVM E2E solutions, and planned functionality(all of the E2E solutions on the IVM are in scope) SAP HANA Platform SAP HANA products SAP Business Suite on SAP HANA
  29. 29. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 29Public 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 Business context and goals  This electronics manufacturer can increase revenue 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 manufacturing. 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 today’s limitations on forecasting. Value drivers/KPIs  Revenue leakage due to stock-outs (% of revenue) Innovation scope SAP HANA products (HPAs, apps) E2E solution High tech – integrated sales and supply chain planning Value potential 2 Feasibility 4 Low High 1 5 Low High 1 5
  30. 30. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 30Public 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 need for decision-making data based on real time SKU-level reporting. This reduces need for manual consolidation of spreadsheets. Business challenges  Planning team is currently looking at sales data and stock inventory that is a few days old because of the manual steps to create the reports. This increases the amount of work and negatively impacts the quality of decisions. Process innovations  Improved productivity of marketing forecasting Contribution of SAP HANA  SAP NetWeaver BW powered by 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) E2E solution High tech – integrated sales and supply chain planning Value potential 3 Feasibility 4 Low High 1 5 Low High 1 5
  31. 31. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 31Public 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 Business context and goals  Due to limitations on SKU-level reporting on inventory, the company is suboptimally allocating products and keeps higher safety stocks than necessary. It seeks improved supply chain planning based on predictive modeling on SKU level. 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 powered by SAP HANA provides SKU-level reports to improve inventory management. Value drivers/KPIs  Reduce inventory carrying costs, reduce inventory obsolescence costs Innovation scope SAP HANA products (HPAs, apps) E2E solution High tech – integrated sales and supply chain planning Value potential 5 Feasibility 3 Low High 1 5 Low High 1 5
  32. 32. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 32Public Customer case: European technology firm Summary of validated scenarios Feasibility Businessvalue Legend LowHigh Low High SAP Business Suite on SAP HANA SAP HANA products SAP HANA platform Phase – deployment road map Annual revenue: €5.9 billion SAP HANA platform: customer-specific SAP HANA products: SAP NetWeaver BW on SAP HANA, HPAs, apps powered by SAP HANA SAP Business Suite on SAP HANA Scenario (business value) 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: Automated reporting: improve productivity supply chain planning) Predictive analytics (revenue leakage due to stock-outs (% of revenue) 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 determined in future discovery workshops Real-time material planning (€8 million) Real-time inventory (€12 million) Fast financial close (€5.7 million) Marketing and sales (€55 million) SAP HANA use cases mapped to industry value map end-to-end solutions
  33. 33. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 33Public Customer case: European technology firm SAP HANA platform 76400 85900 80 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000 2013 Phase 1 Phase 2 Costs SoH Applications Platform € Annual benefits, SAP HANA platform Annual benefits, applications powered by SAP HANA Annual benefits, SAP Business Suite on SAP HANA: €86 million Estimated deployment costs Total transition cost: to be determined More information: Sander Kapper SoH = SAP Business Suite on SAP HANA Based on actual SAP customer engagements SAP HANA Platform: Anything built on the platform that is customer-specific – new business processes and business models SAP HANA products: SAP NetWeaver BW powered by SAP HANA; high-performance apps (HPAs); applications – mapped to inventory value map (IVM) end-to-end (E2E) solutions Currently available functionality (SP0, 1, 2) – 23 scenarios mapped to IVM E2E solutions, and planned functionality(all of the E2E solutions on the IVM are in scope) SAP HANA Platform SAP HANA products SAP Business Suite on SAP HANA
  34. 34. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 34Public 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 service data proactively) Sourcing: Supplier network traceability (strategic purchase optimization) 3 In evaluation Other functions – to be determined in future discovery workshops Customer case: Leading U.S. technology firm, high tech Summary of 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, 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
  35. 35. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 35Public Customer case: Benefit quantification SAP HANA platform -63 -10 45 0 80 -100 -50 0 50 100 150 2013 Phase 1 Costs SoH Applications Platform EXAMPLE Indicative example Results over 5 years – SoH only Surplus US$152 million ROI 100 %* Amortization 2 years* * to be validated Annual benefits, SAP HANA platform: US$80 million Annual benefits, applications powered by SAP HANA Annual benefits, SAP Business Suite on SAP HANA: US$45 million Estimated deployment costs Total transition cost: US$73 million More information: Eric Gandhi SoH = SAP Business Suite on SAP HANA $ SAP HANA Platform: Anything built on the platform that is customer-specific – new business processes and business models SAP HANA products: SAP NetWeaver BW powered by SAP HANA; high-performance apps (HPAs); applications – mapped to inventory value map (IVM) end-to-end (E2E) solutions Currently available functionality (SP0, 1, 2) – 23 scenarios mapped to IVM E2E solutions, and planned functionality(all of the E2E solutions on the IVM are in scope) SAP HANA Platform SAP HANA products SAP Business Suite on SAP HANA
  36. 36. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 36Public 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. A component manufacturer – real-time pricing and margin analysis Industrial machinery and components Business context and goals  Sales teams need real-time pricing and margin analysis at point of sale to respond to fast changing commodity prices and competitor price movements. Business challenges  Respond in real time to fast-changing commodity prices and competitor price movements. Process innovations  Real-time analysis of the impact of commodity price changes and competitor price movements on sales margin and discount offering – required to support telephone and Web-based sales. Contribution of SAP HANA  SAP HANA enables real-time analysis of pricing data and assessment of sales margin. Value drivers/KPIs  Reduce average discount on sales transactions; optimize the product portfolio; enable cross- selling/up-selling; improve productivity of pricing management FTEs; improve productivity of IT FTEs in extracting and reporting on data Innovation scope SAP HANA products (HPAs, apps) E2E solution Industrial machinery and components – collaborative sales force automation Value potential 5 Feasibility 4 Low High 1 5 Low High 1 5
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×