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Delivering Real-Time Business Value for Life Sciences

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This deck is a SoH Executive positioning document in 3 parts for Life Sciences

This deck is a SoH Executive positioning document in 3 parts for Life Sciences

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  • 1. Delivering Real-Time Business Value for Life Sciences SAP Business Suite Powered by SAP HANA July 2013 Public
  • 2. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public  Continuously improve operational efficiency, reduce cost  Enter rapidly new markets in a compliant fashion  Boost margins through real-time customer service The real-time opportunity
  • 3. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 3Public Becoming an innovation-driven enterprise Aligning business operations with customer needs Gain real-time operational visibility  Boost revenue through responsive supply networks  Improve manufacturing operations  Reduce waste Ensure high-quality and compliant products  Increase quality with low cost of compliance  Optimize maintenance  Manage outsourced manufacturing operations effectively Boost operating margins with improved customer service  Accelerate service responsiveness  Manage physician/payer/patient relationships profitably  Raise customer satisfaction and margins
  • 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. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 5Public Industry value map for life sciences The life sciences networked enterprise Patient and Provider Engagement Channel Effectiveness and Social CRM Contract Lifecycle Management Real-Time Service Management Collaborative Innovation and Development Collaboration and Social R&D Product Compliance and Product Safety Product Development Integration and Acceleration Product and Service Differentiation Responsive Supply Networks Synchronized Demand and Supply Chain Logistics and Fulfillment Supplier Networks Serialization / Global Traceability Compliant Manufacturing Manufacturing Operations Quality Excellence and Maintenance Manufacturing 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 Outsourced Manufacturing Physician/Patient/Payer Relationships Technology Solutions Analytics Consumer ExperienceData Management Enterprise Mobility SAP HANA Platform Application Development and Innovation
  • 6. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 6Public Highest real-time business value for life sciences Industry value map for life sciences The life sciences networked enterprise Patient and Provider Engagement Channel Effectiveness and Social CRM Contract Lifecycle Management Real-Time Service Management Collaborative Innovation and Development Collaboration and Social R&D Product Compliance and Product Safety Product Development Integration and Acceleration Product and Service Differentiation Responsive Supply Networks Synchronized Demand and Supply Chain Logistics and Fulfillment Supplier Networks Serialization / Global Traceability Compliant Manufacturing Manufacturing Operations Quality Excellence and Maintenance Manufacturing 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 Outsourced Manufacturing Physician/Patient/Payer Relationships Technology Solutions Analytics Consumer ExperienceData Management Enterprise Mobility SAP HANA Platform Application Development and Innovation 6 1 4 2 7 3 5
  • 7. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 7Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Accounting and financial close Business value for entity close  Limited transparency without ability to manage a central financial close  Missing financial excellence results at the capital market due to a higher cost of equity  Difficult to support parallel financial reporting standards and simulate scenarios  Single repository for company and corporate data  Common view across financials and logistics  Deeper and faster insight down to the lowest level of detail  Faster reconciliation with automated real-time matching  Easier consolidation across legal entities, including issues like intercompany transfers  Simulation of organizational changes and alternate accounting methods, or FX rates Improve service-level performance Reduce Minimize month-end closing time operating costs With SAP Business Suite on SAP HANA
  • 8. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 8Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Financial performance management (1/3) Business value for planning, budgeting, and forecasting  Planning performance is limited to online analytical processing (OLAP), staged cubes for transactional and master data.  Reporting, loading, and retraction performance limits planning iterations.  Enable analytics and transactions on the same enterprise platform for real- time visibility.  Reduce planning cycles that improve information process across enterprise.  Faster extract and DataStore object (DSO) activation times  Iterative planning and real-time simulation supported through improved performance  Better performance for drill down and consolidation  Fast drill through and live view of transactional data in suite Improve service-level performance Reduce Minimize cycle times and manual effort operating costs With SAP Business Suite on SAP HANA  Seamless replication of master and transactional data from SAP Business Suite applications  Availability of more granular data to support planning
  • 9. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 9Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Financial performance management (2/3) Business value for profitability and cost analysis  Data latencies and processes delays  Low ability to react fast to issues and opportunities  Internal decision making that suffers from lack of data depth and availability  Long-running processes  Time-intensive data queries  Manual data analysis  Substantial amount of effort not directly adding value  Unsatisfying resource efficiency and effectiveness  Timely execution of critical business processes  Higher ability to swiftly act in dynamic market environments  Fast decision making  Critical transactions and calculations that run quickly  Instant response times on queries  Prebuilt analytics to automate the data analysis process  Leaner processes from data capture through data analysis  Increased productivity through process-optimized analytics and mobile support Improve service-level performance Reduce Minimize cycle times and manual effort operating costs With SAP Business Suite on SAP HANA
  • 10. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 10Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Financial performance management (3/3) Business value for financial and managerial reporting  Risk of noncompliance due to unfulfilled or overrun audits  Data masses while decision-relevant information not available  Data analysis not supported or automated  Long-running batch jobs and reports  Time-intensive data analysis  Large number of time-consuming, and non-value-added processes required to access and provide accurate, up-to-date information  Timely execution of compliance- relevant validation tasks  Increased end-user satisfaction with sound data  Accurate, detailed, visualized, timely, and actionable information  Critical processes and reports are accelerated  Instant response time on data analysis queries  Workarounds and data latencies eliminated  End-user data analysis through self- service Improve service-level performance Reduce Minimize month-end closing time operating costs With SAP Business Suite on SAP HANA
  • 11. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 11Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Collaborative financial operations (1/3) Business value for receivables management  High external financing costs from lack of working capital management  Inadequate alerting mechanics and lack of context-based facts  Need to manage exceptions within high volumes of invoices  Manual efforts for assigning incoming payments to invoices  Need for sales and service to have better data to support collections, dispute, and credit management  Cash tied up in high days sales outstanding or bad debt write-offs  Easier identification of weak points as a basis for process optimization  Exceptions from reports with thousands of pages getting pushed to mobile devices  Algorithms to help receivables clerks match incoming payments  Unstructured data that can be searched easily  Integration of sales and account management where real-time data is required  Flawless cash collection through real- time data instead of batch data Optimize working capital Minimize Reduce bad debt write-offs days sales outstanding With SAP Business Suite on SAP HANA
  • 12. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 12Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Collaborative financial operations (2/3) Business value for payables management  Expensive and error-prone manual process steps  Need to improve compliance and audit turnaround time  High cost per invoice due to large amounts of tasks  Optimization of supplier payment according individual payment terms  Better insight on the company’s cash position  Instant visibility of account payables and days payable outstanding  Joint view of payables and cash positions to support financial decision-making  Quicker inquiry turnaround time for audits  Better scheduling of payment runs through real-time and accurate insight on vendor-opened receipts  Payment of dedicated items with transparency about selection criteria Increase days payable outstanding Optimize Reduce working capital lost supplier discounts With SAP Business Suite on SAP HANA
  • 13. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 13Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Collaborative financial operations (3/3) Business value for shared service framework for finance  Difficulties in handling high volumes of queries in shared services organizations (SSOs)  Too much time consumed by searches for vendor, customer, and employee data  Challenges to continuously improve the quality of service efficiently  Significant improvement of in-box performance  Accelerated navigation within the in- box  Ability to review and prioritize work much quicker  Faster identification of vendors, customers, and employees  Improved satisfaction of the agents and the clients through provision of more responsive service  Reduced costs and faster response times  SSO able to meet service-level agreements (SLAs) on budget and improve key performance indicators (KPIs) Increase productivity for shared services agents Improve Reduce employee satisfaction overall costs of delivering services With SAP Business Suite on SAP HANA
  • 14. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 14Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Enterprise risk and compliance management Business value for access control role analytics  High number and fast increase of unused and orphaned roles  Long hours required to run batch jobs to analyze transaction logs with millions of records  US$4,000 required each year for maintenance for each active ERP role  Long process for identifying unused roles, resulting in higher risk of noncompliance with corporate rules  Real-time analysis of role usage when discussing with the business owners of the roles  Deep insight into roles for uncovering potential risks for the organization  Real-time analysis on roles for reuse or enhancements instead of creating new or consolidating existing roles  Ability to combine role data coming from different sources  Facilitation of business reengineering and reorganization through joint analysis of role and HR data Reduce unused/orphaned roles Consolidate Reduce most-frequently- used (active) roles cost of noncompliance With SAP Business Suite on SAP HANA
  • 15. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 15Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Physician/patient/payer relationships (1/2) Business value for sales  Missed market opportunities due to lack of visibility to third-party data  Data explosion, driven by new level of sales rep connectivity via mobile devices  Data in disparate data sources, which prevents true 360-degree view of the customer  Ability to integrate third-party data  Agile marketing to respond faster to changing market dynamics and opportunities  New analytical data mining capabilities on Big Data (social media, predictive)  Near real-time monitoring and reporting on sales performance  One central place for collecting all customer data, leading to 360-degree view of customers in real time  Precision marketing to personalize every interaction with the customer Improve profitability Optimize Increase return on marketing investments customer satisfaction With SAP Business Suite on SAP HANA
  • 16. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 16Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Physician/patient/payer relationships (2/2) Business value for marketing  Difficulty in targeting particular territories or physicians by disease area  Inability to identify gaps in sales pipeline, leading to missed targets  Difficulty to conclude actionable findings from vast customer data needed to maximize deal sizes  Low insight into customers’ buying preferences from social media content  Easy segmentation of physicians with account intelligence analytics  Faster transaction search capabilities  Complete transparency into sales pipeline based on real-time information with unlimited drill-down functionality  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 Increase Improve percentage of sales reps achieving quota offer win rate With SAP Business Suite on SAP HANA
  • 17. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 17Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Real-time service management Business value for complaint management and root cause analysis in medical device companies  Locating the right resources (like machines) to resolve customer issues takes too long.  Root cause analysis based on unstructured data such as text is not possible.  Managers lack actionable reporting and visibility into workload of teams.  Search times are long, and it is hard to find customer records within masses of records and interactions.  Easier search capabilities for experts in order to dispatch or escalate issues to help field technicians  Root cause analysis based on structured and unstructured data to help customer service  New actionable insights into workload of teams and employees  Significantly faster searches, such as account searches, interaction history, and customer fact sheets Decrease average handling time Improve Reduce service-level agreement compliance service cost With SAP Business Suite on SAP HANA
  • 18. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 18Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Logistics and fulfillment (1/2) Business value for inventory management  Lack of real-time insight into inventory situation that might cause inaccurate reordering, finally resulting in higher stock  Time-consuming inventory management reporting  Need for accurate display of actual stock to react quickly to stock shortfall  Inability to completely track material movements  Real-time stock insight and inventory monitoring with high performance  Support for demand-driven procurement  New analytical inventory management cockpit  Real-time access to complex inventory management data  High-performance inventory management with large volumes of documents  Real-time stock insight and inventory monitoring  Improved adjacent procurement processes, such as purchase order or invoicing processing Reduce inventory levels Minimize Optimize out-of-stocks working capital With SAP Business Suite on SAP HANA
  • 19. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 19Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Logistics and fulfillment (2/2) Business value for warehouse management  No up-to-date view of the inventory situation  Need for accurate display of actual stock to react quickly to stock shortfall  Time-consuming inventory management reporting  Real-time access to complex inventory management data  Real-time stock insight and inventory monitoring  High-performance inventory management with large volumes of documents  Higher process efficiency in adjacent procurement processes With SAP Business Suite on SAP HANA Reduce out-of-stocks by 36% Decrease Limit bullwhip effect inventory and safety stocks by 29%
  • 20. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 20Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Procurement and order collaboration Business value for operational procurement  Missing real-time insight into operational procurement reporting  Dynamic operational procurement not possible  Slow and costly paper-based processes  High transaction costs  Increased processing time for transactions with a high number of line items  Frequent errors due to maverick spend  New configuration options for procurement analysis  Modern, easy-to-consume user interface  Complete visibility into end-to-end procurement activities  Real-time insight and information that is easy to manipulate  Accelerated long-lasting processing of purchasing documents Increase transparency Lower Increase procurement operations cost process effectiveness With SAP Business Suite on SAP HANA
  • 21. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 21Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Synchronized demand and supply chain and supplier networks (1/2) Business value for sales and operations planning  No smooth collaboration across stakeholders during sales and operations planning  Long cycle times to develop consensus forecast  Long loading times lead to decisions based on incomplete, inaccurate and outdated data  Complex administration of system landscapes, especially movement and replication of data  Increased collaboration and shorter cycle times for sales and operations planning  Improved user experience  Better supply chain visibility and decision making through near real- time reporting with faster analysis  Better production and less cost through simplified system setup, administration, and robust planning foundation Reduce planning cycle times Increase Reduce supply chain performance total cost of ownership (TCO) With SAP Business Suite on SAP HANA
  • 22. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 22Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Synchronized demand and supply chain and supplier networks (2/2) Business value for supply chain monitoring  Lack of near real-time information  Batch jobs to extract data from planning system to central reporting based on the SAP NetWeaver Business Warehouse (SAP NetWeaver BW) application on weekly basis  No ad hoc operational reporting  Reporting, queries, dashboards that must be created by each customer individually  Not possible to run sub-daily planning jobs and analyze the results  Inability to respond fast to ad hoc queries from customer which may result in lost sales  Implementing GxP (good anything practice) compliance made easier by improved supply chain visibility  Decision support based on near real- time information  Information able to be updated via delta capabilities  Prebuilt box analytical reporting scenarios provided with streamlined data load  Planned ability for customers to add their own KPIs and dashboards  Advanced data retrieving and computing capabilities supported  Optimized reporting of supply chain planning data Reduce time spent compiling, generating, and waiting for reports Increase Optimize visibility into key supply chain data in an easily consumable way analysis capabilities with multiple levels of aggregation and drill- down techniques With SAP Business Suite on SAP HANA
  • 23. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 23Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Manufacturing operations Business value for asset operations and maintenance  Maintenance scheduling that consumes a great deal of time  Manual and error-prone process of preselection of maintenance plans  Potentially missing necessary objects for maintenance calls  High number of maintenance plans that must be scheduled frequently  Planning once a week  Accelerated mass transactions  Instant analysis on top of transactions  Preselection of due plans that speeds up the process significantly  Real-time analytics on all data, including machine sensor information  Scheduling all maintenance plans within a specific time frame  Faster response times and more accurate maintenance scheduling  Planning several times a day and up- to-date scheduling information in maintenance Increase asset utilization and reduce unplanned asset downtime Maximize Update asset uptime scheduling information on maintenance operations With SAP Business Suite on SAP HANA
  • 24. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 24Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Core HR and payroll (1/4) Business value for payroll processing  Responses to management ad hoc inquiries about trends of high volume payroll information are costly.  Business users have very limited ability to analyze payroll results.  Addressing employee inquiries around payroll is time-consuming and expensive.  HR needs to increase the quality of service provided to employees at lower costs.  HR IT resources freed to focus on the execution of organizational strategic tasks  Thresholds leveraged as a steering mechanism to optimize business performance  Simplification of payroll data analysis with optimized representation of data  High-speed read access based on SAP HANA, slashing time to access and analyze critical payroll information  Faster response times to employees, increasing employee productivity and satisfaction Increase efficiency of payroll management Improve Reduce employee satisfaction overall costs of payroll processing With SAP Business Suite on SAP HANA
  • 25. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 25Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Core HR and payroll (2/4) Business value for effective shared services delivery  Shared services organization (SSO) is challenged to give prompt, accurate answers.  SSO agents spend time searching for employee data using employee identification.  SSO needs to improve the quality of service provided to employees at lower cost.  Acceleration of in-box performance allowing SSO agents to review and prioritize their work more efficiently  Faster employee identification enabling more responsive service  Improved employee satisfaction  Reduced costs and faster response times  SLAs and budget objectives met, KPIs improved Increase productivity for shared services agents Improve Reduce employee satisfaction overall costs of delivering services With SAP Business Suite on SAP HANA
  • 26. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 26Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Core HR and payroll (3/4) Business value for time and absence calculation  Responses to management ad hoc inquiries about trends of high-volume payroll information are costly.  Business users have a very limited ability to analyze time evaluation data.  Addressing employee inquiries around time/absence is time- consuming and expensive.  HR needs to increase the quality of service provided to employees at lower cost.  HR IT resources freed to focus on the execution of organizational strategic tasks  Thresholds leveraged as a steering mechanism to optimize business performance  Simplification of time evaluation data analysis with optimized representation of data  High-speed read access based on SAP HANA, slashing time to access and analyze critical time information  Faster response times to employees, increasing employee productivity and satisfaction Increase efficiency of time management Improve Reduce employee satisfaction overall costs of time management With SAP Business Suite on SAP HANA
  • 27. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 27Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Core HR and payroll (4/4) Business value for transactional analytics  Translation of organizational strategy into HR metrics requires significant effort or special expertise.  Decisions are often based on hunches.  It is difficult to zero in on underlying transactions from high-level KPIs.  Data loads in traditional reporting tools are time-consuming.  Integrated and personalized cockpits that provide insight into metrics that matter most  Thresholds leveraged as a steering mechanism to optimize business performance  Predefined workforce and time management–related KPIs for managers with the ability to navigate into details  Analytics embedded in business transactions  Prebuilt virtual data models for real- time transactional analytics  Simplified architecture Increase revenue per employee Optimize Reduce HR processes time and costs of operational reporting With SAP Business Suite on SAP HANA
  • 28. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 28Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Manufacturing execution (1/2) Business value for real-time requirements planning  Slow manufacturing resource planning (MRP) due to complex recipes and process instruction sheets in pharmaceuticals  Complex bill of materials and routing structures in medical devices companies  Synchronizing MRP runs across plants in the supply chain made difficult by long MRP runs  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 runtime with high-speed reads  Faster reaction to demand changes  Demand information propagated faster through the supply chain  Facilitation of corrective action at the plant level and across plants  Enablement of broader supply chain, sustainability, financial, and performance improvements  Better synchronize demand and supply for global cross-plant planning  Instant update on supply network collaboration with latest demand information Reduce out-of-stocks Decrease inventory and safety stocks With SAP Business Suite on SAP HANA
  • 29. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 29Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Manufacturing execution (2/2) Business value for global plant performance management  Complex global supply chains leading to several constraints  Hard to implement GxP compliant practices due to delayed insights into manufacturing performance  Inability to find process control or maintenance issues and bottlenecks in production  Need to capture the root causes for downtimes, efficiency losses, and poor quality  High costs due to decreased asset utilization, unplanned downtimes, and inefficient performance  Reduced customer responsiveness due to insufficient product yields and poor product quality  Integrated view of the global supply chain  Combination of quantitative KPIs with qualitative context and reasons for performance issues  Combination of plant performance with business context, improving GxP compliance  Facilitation of corrective action at the plant level and across plants  Enablement of broader supply chain, sustainability, and financial and enterprise performance improvements  Enterprise-level rollup of plants that enable analytics comparing assets and performance KPIs across sites Improve return on assets and product quality Increase Reduce resource utilization and asset uptime unplanned downtime With SAP Business Suite on SAP HANA
  • 30. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 30Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Product development integration and acceleration (1/3) Business value for portfolio management (SAP Portfolio and Project Management) of drugs and devices  Solid go/no-go decisions requiring real-time status data of running clinical trials and portfolios  Time-consuming analysis for large portfolios, leading to lack of transparency  Cumbersome aggregation of financials and investment commitments for large portfolios  Outdated information on the investment increasing efforts for reviews  High efforts for manual editing of financial KPIs like net present value or internal rate of return  Real-time access to decision-making data aggregated from lowest levels, such as trial expenses  Evaluation of pipeline net present values based on most recent revenue and expense projections • Ability to go top down from the overall budget down to single expenses through drill downs • Faster aggregation of financials along the investment area hierarchy • Automated calculation of most important KPIs based on values from financial planning Increase transparency for decision making Improve speed of aggregating financial information With SAP Business Suite on SAP HANA
  • 31. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 31Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Product development integration and acceleration (2/3) Business value for portfolio management (SAP Portfolio and Project Management) of drugs and devices  Long waiting times when starting the project and task dashboards  Low productivity when working on several projects and tasks across projects  Updates on multiple tasks that are inefficient and time consuming as tasks are confirmed one by one  Very long times spent searching for documents across projects or for large portfolio of projects  Slow process of finding projects, tasks, and phases by responsible project member  Faster access to users 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  Ability to find projects or tasks faster by responsible project member Increase user productivity Reduce Improve time for task confirmation search for documents and project elements With SAP Business Suite on SAP HANA
  • 32. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 32Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Product development integration and acceleration (3/3) Business value for project management (project systems)  Long wait and locking times slow down execution and reactions on deviations.  User acceptance is reduced due to affected usability in handling large project data.  Analysis of high data volumes for complex, long-lasting projects or cross-project monitoring is difficult.  Deviations in costs, time, resources, or quality are seen too late.  Reduced waiting and locking times of critical transactions along the end-to- end process  Higher process efficiency and improved employee productivity  Acceleration of project reporting and new project line item reporting delivering faster insights  Timely corrective measures through clear insights in deviations and risks in real time Increase user productivity and end-to-end process efficiency Improve transparency and decision support to take corrective measures in time With SAP Business Suite on SAP HANA
  • 33. © 2013 SAP AG or an SAP affiliate company. All rights reserved. Thank you
  • 34. © 2013 SAP AG or an SAP affiliate company. All rights reserved. Appendix with detailed customer cases
  • 35. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 35Public Reference US$10 billion life sciences company 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$10 billion 1 Short term TCO: IT spend avoidance (data volumes projected to keep growing; reduced data load and monitoring costs; accelerated time to value on future projects) FIN: Financial supply chain (growth in transactions that has consumed window of time available for producing required reports) SCM: Distributor channel insight (enhancing daily sales and inventory information for all SKUs, with the ability to look at nonaggregated data to improve supply chain responsiveness and insight) 2 Medium term SCM: Supply planning analytics (access to critical inventory and manufacturing planning reporting limited by response times) FIN: Fast financial close (increasingly dynamic business environment demanding greater visibility and analytics; regulatory demands increasing; limited ability to analyze and understand discrepancies) CRM: Sales analytics (ability to explore data for customer insight, which will lead to a competitive advantage and increased revenue) Financial supply chain ($1 million) Supply planning analytics ($650k) IT spend avoidance ($3.2 million) Payroll/GSR ($870,000) Distributor channel insight ($2.2 million) Sales analytics ($6.9 million) Recall management ($1.3 million) Fast financial close ($150,000) 1 1 2 2 3 1 23 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)
  • 36. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 36Public 4,3 5,1 6,2 2,2 2,2 2,2 6,8 8,2 0 2 4 6 8 10 12 14 16 18 2013 Phase 1 Phase 2 Phase 3 Costs SoH Applications Platform Reference US$10 billion life sciences company SAP HANA platform 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) Based on actual SAP customer engagements Annual benefits, SAP HANA platform: $8.2 million Annual benefits, applications powered by SAP HANA: $2.2 million Annual benefits, SAP Business Suite on SAP HANA: $6.2 million Estimated deployment costs Total transition cost: to be determined SAP HANA platform SAP HANA products SAP Business Suite on SAP HANA In millions of US$ More information: Value Engineering Annual revenue: US$10 billion SoH= SAP Business Suite on SAP HANA
  • 37. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 37Public 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. Medical solutions provider – recall management Life sciences Business context and goals  A medical solutions provider has processes in place to address recall management, but this is a complex batch job process that can take significant time to execute. Reducing the time and complexity of this process can speed responsiveness, reduce risk, and improve healthcare outcomes. Business challenges  Business support for applying new technology to a process that works today could be a challenge in resource-constrained companies. Contribution of SAP HANA  SAP HANA will enable the entire process to run faster and provide the ability to get deep insights into the data without the need to build data marts. This will improve responsiveness and quality. Value drivers/KPIs  Improved responsiveness in understanding internal quality issues, customer complaints, and adverse medical events Innovation scope SAP HANA platform (customer-specific) E2E solution Life sciences – product compliance and product safety Value potential 3 Feasibility 5 Low High 1 5 Low High 1 5
  • 38. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 38Public 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. Medical solutions provider – sales analytics Life sciences Business context and goals  This medical solutions provider currently pushes reports to the sales force with data that is generated weekly. Access to real-time information enabling users to explore data for customer insights could lead to a competitive advantage and increased revenue. Business challenges  User adoption, ability to access data, introduction of process change with sales force Contribution of SAP HANA  SAP HANA will help in providing near real-time insight to customer and supply chain data. Value drivers/KPIs  Improved customer service, responsiveness, inventory management, revenue growth, and profitability Innovation scope SAP HANA platform (customer-specific) E2E solution Life sciences – synchronized demand and supply chain Value potential 5 Feasibility 5 Low High 1 5 Low High 1 5
  • 39. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 39Public 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. Pharmaceutical manufacturer – distributor channel insight Life sciences Business context and goals  A pharmaceutical company receives product sales and inventory information daily for all its SKUs but does not have the ability to look at nonaggregated data to improve supply chain responsiveness and insight. Business challenges  There may be some additional costs to get access to this data daily. In addition, there will need to be some work done around data quality. Access to this data globally will be a challenge. Contribution of SAP HANA  SAP HANA will enable insight into nonaggregated data across the entire North American supply chain. Value drivers/KPIs  Improved supply chain visibility, insight, responsiveness, and security Innovation scope SAP HANA products (HPAs, apps) E2E solution Life sciences – logistics and fulfillment Value potential 5 Feasibility 5 Low High 1 5 Low High 1 5
  • 40. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 40Public 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. Healthcare products manufacturer – integrated business planning Life sciences Business context and goals  Sales and operations planning (S&OP) is complex process with a long lead time process to aggregate levels of data. Supply chain planning requires access to real-time information across a complex network to improve insight and responsiveness. Business challenges  Cultural issues in designing a global supply chain will be required to benefit from improvements in this solution. Contribution of SAP HANA  SAP HANA will enable insight to nonaggregated data across the entire North American supply chain. Value drivers/KPIs  Reduced inventory costs, improvements in customer service, reduced supply chain costs Innovation scope SAP Business Suite on SAP HANA (now and future) E2E solution Life sciences – synchronized demand and supply chain Value potential 5 Feasibility 3 Low High 1 5 Low High 1 5
  • 41. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 41Public 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. Pharmaceutical company – business warehouse landscape simplification Life sciences Business context and goals  This pharmaceutical company has a complex business intelligence (BI) landscape and will require a significant investment in new technology. It is looking for a strategy to improve performance and manage costs long term. The current approach was not sustainable. Business challenges  The company is risk-averse and has not been an early adopter of new technologies. It has a new management team in place, which is new to the life sciences industry. Contribution of SAP HANA  SAP HANA will enable simplification of the BI landscape and provide a platform for improved information access. Value drivers/KPIs  Landscape simplification, reduced costs, improved performance, high value delivered to business partners Innovation scope SAP HANA products (HPAs, apps) E2E solution Life sciences – analytics Value potential 4 Feasibility 4 Low High 1 5 Low High 1 5
  • 42. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 42Public 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. Pharmaceutical company – next-generation sequencing in life sciences R & D Life sciences Business context and goals  Finding the next blockbuster is very costly, with the tools generally used from the last two decades. Big Data and next-generation sequencing (NGS) allows genome mutation identification and analysis in just 20 minutes. This used to take days, and so there is the potential for radical cost reductions and acceleration of R & D pipeline. Business challenges  Provide applications that overcome workflow challenges related to data analysis as well as regulatory uncertainties and sequencing costs  Provide NGS for clinical research and molecular diagnostics Process innovations  Solution delivered: Rapid bioinformatics of genome interpretation provided; biomarker data to guide treatment decisions through companion diagnostics based on real time  Business benefit: Reduced time and cost of sample-to-result NGS; significantly improved effectiveness of scientists Contribution of SAP HANA  Acceleration of R & D pipeline Value drivers/KPIs  Cost of R & D; throughput of R & D; improved certainty/statistical validity Innovation scope SAP HANA products (HPAs, apps) E2E solution Life sciences – product development integration and acceleration Value potential 5 Feasibility 4 Low High 1 5 Low High 1 5
  • 43. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 43Public 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. Medical device manufacturer – advanced planning and optimization benefits Life sciences Business context and goals  Limited visibility, development backlog Business challenges  Access to critical inventory and manufacturing planning reporting is limited by response times. S&OP requires validation across reporting environments. Inventory initiatives require increasing access to more timely information to drive results. Process innovations  Reduce inventory costs, inventory obsolescence, lost revenue due to stock-outs, and reporting validation costs Contribution of SAP HANA  Improve service levels without increasing cost to serve; increase ability to manage supply chain costs with access to timely information; plan more accurately by providing access to actual results; reduce planning cycle times Value drivers/KPIs  Reduced cost of planning validation  Reduced cost of S&OP Innovation scope SAP Business Suite on SAP HANA (now and future) E2E solution Life sciences – synchronized demand and supply chain Value potential 5 Feasibility 5 Low High 1 5 Low High 1 5
  • 44. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 44Public 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. Medical device manufacturer – AR financial supply chain management benefits Life sciences Business context and goals  Business processes supported, limited ability to scale Business challenges  Growth in transaction volume has nearly consumed window of time available for producing required reports. Multiple data sources has created need for audit and reconciliation of reports. Effort required to execute transaction-level reporting leaves no time for other reports. Process innovations  Reduce monitoring and reconciliation efforts.  Distribute workload more evenly through reducing wait time on data load and reporting process. Contribution of SAP HANA  Reduce risk of failure in mission-critical process; support ability to scale; reduce compliance risk; support Sarbanes-Oxley and audit compliance Value drivers/KPIs  Reduced downtime recovery Innovation scope SAP Business Suite on SAP HANA (now and future) E2E solution Life sciences – accounting and financial close Value potential 5 Feasibility 5 Low High 1 5 Low High 1 5
  • 45. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 45Public 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. Medical device manufacturer – accounting and financial close Life sciences Business context and goals  Increasing transactional burden limits strategic focus Business challenges  Reporting and analytics transactional functions consume significant time and resources. Increasingly dynamic business environment demands greater visibility and analytics. Regulatory demands are increasing, with limited ability to analyze, understand, and respond. Process innovations  Reduce cost of operations and analysis, cost of budgeting and forecasting, and cost of data audit and reconciliation Contribution of SAP HANA  Improve visibility to product line, product profitability; improve visibility to customer profitability; improve ability to analyze and understand regional performance, early identification of trends; increase ability to support strategic activities with accuracy Innovation scope SAP Business Suite on SAP HANA (now and future) E2E solution Life sciences – accounting and financial close Value potential 5 Feasibility 5 Low High 1 5 Low High 1 5
  • 46. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 46Public 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. Medical device manufacturer – sales reporting benefits Life sciences Business context and goals  SLA and performance challenges are being experienced with an expanding user base. Business challenges  Mission-critical reports are delivered inconsistently. Reaching global user base with timely information is a challenge. There is frustration in the user community based on limited access to information that drives core processes. Process innovations  Reduce lost sales time and improve revenue. Improve performance on SLAs. Preserve investment in portal. Contribution of SAP HANA  Improve customer satisfaction through more value-added sales relationship; increase revenue through improved visibility into performance and opportunity; improve ability to manage PO- pending process through increased visibility and timeliness of information Value drivers/KPIs  Reduced time spent on workbooks Innovation scope SAP Business Suite on SAP HANA (now and future) E2E solution Life sciences – analytics Value potential 5 Feasibility 5 Low High 1 5 Low High 1 5
  • 47. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 47Public 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. Medical device manufacturer – IT spend avoidance and landscape simplification Life sciences Business context and goals  Analysis environment is complex and expensive. Business challenges  Data volumes are projected to keep growing, driving up storage, server, software, and related costs. Data is moved to an intermediate staging area where it is cleaned and normalized before being uploaded into SAP NetWeaver BW. Considerable expense is involved. Process innovations  Reduced storage costs, server costs, database license and maintenance, system development and management, data load and monitoring Contribution of SAP HANA  Empower business community with greater access and faster performance; support increasing demand for access to more timely information; increase ability to support analytics for large data sets and data from multiple sources Value drivers/KPIs  Cost of custom development  Acceleration of time to value on future SAP NetWeaver BW projects  Reduction of data load and monitoring Innovation scope SAP Business Suite on SAP HANA (now and future) E2E solution Life sciences – analytics Value potential 5 Feasibility 5 Low High 1 5 Low High 1 5
  • 48. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 48Public 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. Medical device manufacturer – SCM benefits Life sciences Business context and goals  There is growing demand for timely information. Business challenges  Continued pressure to improve performance demands increased access to information. Increasing regulation requires audit trail and ability to rapidly access audit data. Increasing globalization raises demands on supply chain and creates proliferation of suppliers. Process innovations  Improve planning efficiency and effectiveness. Increase procurement savings on direct material. Reduce time spend validating and reconciling. Contribution of SAP HANA  Leverage the scale of global supply chain through timely visibility to management metrics; reduce cost of regulatory compliance Value drivers/KPIs  Reduced cost of manufacturing planning  Reduced cost of manufacturing analytics Innovation scope SAP Business Suite on SAP HANA (now and future) E2E solution Life sciences – synchronized demand and supply chain Value potential 5 Feasibility 5 Low High 1 5 Low High 1 5