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Delivering Real-Time Business Value for Automotive

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This deck is a Suite on HANA Executive positioning document in 3 parts for Automotive.

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Delivering Real-Time Business Value for Automotive

  1. 1. July 2013 Delivering Real-Time Business Value for Automotive SAP Business Suite Powered by SAP HANA Public
  2. 2. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public The real-time opportunity Customer individualization, new mobile trends, new technology developments, and increasing regulatory requirements necessitate faster reaction times from automotive companies and lead to products with more and more variations, higher technical complexity, and larger data volume. This leads in turn to greater operational risk that must be managed.  Follow new customer behaviors and trends  Manage overcapacities  Move to emerging markets
  3. 3. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 3Public Becoming an innovation-driven enterprise Align business operations with customer needs Drive profitable growth with flexible sales and revenue models  Advanced prediction  Customer-specific promotions  Increased market share Bring enticing and relevant products to market rapidly  Increased manufacturing efficiency  Reduced cost of operations  Simplified planning of maintenance activities Respond to market dynamics in real time  Faster reaction to changes  Optimized inventory levels  Minimized out-of-stocks
  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 Back Industry value map for automotive The innovation-driven enterprise Technology Solutions Marketing, Sales and Aftermarket Dealer Business Management Vehicle Sales Management Customer Service, Support, and Warranty Management Application Develop- ment and Integration SAP HANA Platform Collaborative Product Innovation Continuous Product and Service Innovation Integrated Product Development for Discrete Industries Embedded Product Compliance Manufacturing and Logistics Operational Procurement and Inbound Logistics for Direct Material Lean Manufacturing Make to Order Outbound Logistics Responsive Supply Networks Service Parts Management Transportation Management Supply Chain Execution People and Talent Core Human Resources and Payroll Talent Management Time and Attendance Management Workforce Planning and Analytics Finance Financial Performance Management Accounting and Financial Close Treasury and Financial Risk Management Collaborative Finance Operations Enterprise Risk and Compliance Management Procurement Supplier Discovery and Lifecycle Management Strategic Sourcing and Contracting Procurement and Order Collaboration Collaborative Invoice to Pay Commodity Management IT Management Application Lifecycle Management IT Infrastructure Management IT Portfolio and Project Management IT Service Management IT Strategy and Governance Multichannel Marketing Management Enterprise Mobility Consumer Experience Data ManagementAnalytics 3D Business Visualization
  6. 6. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 6Public Back Industry value map for automotive Real-time value for key end-to-end processes Technology Solutions Marketing, Sales and Aftermarket Dealer Business Management Vehicle Sales Management Customer Service, Support, and Warranty Management Application Develop- ment and Integration SAP HANA Platform Collaborative Product Innovation Continuous Product and Service Innovation Integrated Product Development for Discrete Industries Embedded Product Compliance Manufacturing and Logistics Operational Procurement and Inbound Logistics for Direct Material Lean Manufacturing Make to Order* Outbound Logistics Responsive Supply Networks Service Parts Management Transportation Management Supply Chain Execution People and Talent Core Human Resources and Payroll Talent Management Time and Attendance Management Workforce Planning and Analytics Finance Financial Performance Management Accounting and Financial Close Treasury and Financial Risk Management Collaborative Finance Operations Enterprise Risk and Compliance Management Procurement Supplier Discovery and Lifecycle Management Strategic Sourcing and Contracting Procurement and Order Collaboration Collaborative Invoice to Pay Commodity Management IT Management Application Lifecycle Management IT Infrastructure Management IT Portfolio and Project Management IT Service Management IT Strategy and Governance Multichannel Marketing Management Enterprise Mobility Consumer Experience Data ManagementAnalytics 3D Business Visualization Highest value for automotive 2 2 3 2 2 3 2 3 1 * For component manufacturers
  7. 7. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 7Public Today Manage financial performance Business value for financial and managerial reporting  Risk of noncompliance due to unfulfilled (overruns in) audits  A lot of data; decision-relevant information not readily available  Data analysis not supported or automated  Long-running batch jobs/reports  Time-intensive data analysis  Large number of time-consuming, and non-value-added processes required to provide access to accurate, up-to-date information  Timely execution of compliance- relevant validation tasks  Increased end-user satisfaction (accurate, detailed, visualized, timely, and actionable information)  Acceleration of key critical-path processes and reports  Instant response time on most data analysis queries  Workarounds and data latencies eliminated  End-user data analysis through self- service means (via SAP BusinessObjects business intelligence solutions) Improve service level performance 10% Reduce Minimize month-end closing time 33% operating costs 25% Key performance indicator (KPI) improvements to be validated by SAP Value Engineering With SAP Business Suite on SAP HANA
  8. 8. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 8Public Today Continuous product and service innovation Business value for project management (SAP Portfolio and Project Management)  Project members experience long waiting times when starting the project and task dashboards. This reduces user productivity when working on several projects and tasks across projects  Updates on multiple tasks are inefficient and time-consuming as project team members confirm tasks one by one to reduce waiting times  Searching for documents across projects takes a very long time for large portfolio of projects.  The process of finding projects, tasks and phases by responsible project member is slow  Faster access to my tasks, my projects  Accelerated access to project, task, and checklist items dashboards  Project team members enabled 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% KPI improvements are high-level estimates and will have to be validated for each customer situation. With SAP Portfolio and Project Management on SAP HANA
  9. 9. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 9Public Today Continuous product and service innovation Business value for project management (project system)  Long wait and locking times along business processes hinder project execution and impact flexibility to react on deviations  User acceptance is reduced due to affected usability in handling large project data  Reduced waiting and locking times of critical transactions along the end-to- end process, resulting into higher process efficiency and improved employee productivity Increase user productivity and end-to-end process efficiency 10% Improve transparency and decision support to take appropriate corrective measures in time 10%  Real-time analysis of high volumes of data for complex, long-lasting projects or cross-project monitoring is challenging due to high data volumes  Due to missing 360-degree real-time transparency across applications deviations in costs, time, resources, or quality are seen too late in the process  Acceleration of project info system reporting and new project line-item reporting delivering faster insights  Early insight in deviations and risks enabling timely corrective measures by highlighting deviations in real time  Planned: Project execution cockpit enabling project managers as well as project employees to analyze status and progress of one or multiple projects in execution from an end-to- end perspective at maximum speed with real-time data, and to derive and execute actions wherever applicable KPI improvements are high-level estimates and will have to be validated for each customer situation. With SAP Business Suite on SAP HANA
  10. 10. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 10Public Today Operational procurement/inbound logistics (for direct material) 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 Reduce inventory levels 10% Minimize Optimize out-of-stocks 5% working capital 5% KPI improvements to be validated by SAP Value Engineering With SAP Business Suite on SAP HANA
  11. 11. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 11Public Today Lean manufacturing Business value for supply chain monitoring  Lack of near real-time information  Batch jobs to extract data from planning system to central reporting typically on weekly basis  No ad hoc operational reporting  Reporting, queries, and dashboards required to be created by each customer individually  Not possible to run sub-daily planning jobs and analyze results due to long data preparation times in SAP NetWeaver Business Warehouse (SAP NetWeaver BW)  Inability to respond quickly to ad hoc queries from customer, which may result in lost sales  Decision support based on near real- time information  Information updated via delta capabilities  Built-in analytical reporting scenarios provided with streamlined data load.  Planned ability for customers to add their own KPIs and dashboards  Advanced data retrieving and computing functionality of SAP HANA used to optimize the reporting of supply chain planning data Reduce time spent compiling, generating, and waiting for reports 5% Increase Optimize visibility into key supply chain data in an easy, consumable way 8% analysis capabilities with multiple levels of aggregation and drill- down techniques 15% KPI improvements are high-level estimates and will have to be validated for each customer situation. With SAP Business Suite on SAP HANA
  12. 12. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 12Public Today Make to order* Business value for material requirements planning (MRP)  Decisions are often based on periodic MRP runs and outdated information; process done in batch  It is not possible to replan quickly if conditions change due to long run times. Prediction of inventory coverage for critical parts is difficult  It is not possible to replan if conditions change during the planning horizon due to long runtimes  Faster replanning allowing more frequent MRP runs in shorter cycles  Instant reaction to demand changes and updates to the supplier  Demand information propagated faster through the supply chain More frequent MRP runs  Allowing reduction in inventory and safety stock levels  Speeding information flow toward suppliers, enabling them to react faster to changed planning conditions  Better synchronized material demand and supply planning with reduced bullwhip effect Reduce out-of-stocks by 5% Decrease Limit inventory and safety stocks by 5% bullwhip effect KPI improvements are high-level estimates and will have to be validated for each customer situation. * For component manufacturers With SAP Business Suite on SAP HANA
  13. 13. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 13Public Today Make to order Business value for global plant performance management  Inability to gather and visualize data from production in real time to improve the status of manufacturing performance both within and across multiple sites  Inability to understand where machine maintenance issues and bottlenecks exist in production  Need to capture the root causes for downtime, efficiency loss, and poor quality  Unplanned downtime, suboptimal performance and poor product quality all contributing to decreased asset utilization, poor product yields, increased costs, and reduced customer responsiveness  Combines quantitative performance measures with qualitative context and reasons for performance issues  Combines plant performance with business context  Facilitates corrective action at the plant level and across plants  Enables broader supply chain, sustainability, financial and enterprise performance improvements  Enterprise-level overall equipment effectiveness (OEE) that rolls up plant-level OEE for enterprise analytics and comparing assets and performance across multiple sites Improve return on assets, costs of goods sold, and product quality 5% Increase Reduce resource utilization and asset uptime 8% unplanned downtime, changeover, and waste 20% KPI improvements are high-level estimates and will have to be validated for each customer situation. With SAP Business Suite on SAP HANA
  14. 14. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 14Public Today Outbound logistics Business value for warehouse management (outbound logistics)  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 Reduce inventory levels 10% Minimize Opitmize out-of-stocks 5% working capital 5% KPI improvements to be validated by SAP Value Engineering With SAP Business Suite on SAP HANA
  15. 15. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 15Public Today Supply chain execution Business value for demand-driven supply chain  More and more difficult to access and effectively use timely demand information from the supply network  Decisions often based on incomplete, inaccurate, and outdated information  Hardware and system landscapes that are challenging to administrate  Increased business/expert user productivity with faster planning processes and improved user experience and by driving rapid consensus across the supply chain network  Near real-time reporting with increased speed of information analysis leading to better supply chain visibility and decision making  Improved production and cost efficiency by simplified system setup and administration and by providing a more robust planning foundation Reduce planning cycle times 36% Increase Reduce supply chain performance 18% total cost of ownership (TCO) 24% KPI improvements are high-level estimates and will have to be validated for each customer situation. With SAP Business Suite on SAP HANA
  16. 16. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 16Public Today Customer service, support, and warranty management Business value for contact management with interaction center  To successfully resolve customer issues, companies must be able to quickly locate the right experts or resources within the organization, whether those experts reside inside the contact center or elsewhere  Managers and supervisors lack actionable reporting and visibility into the workload of their teams  High volume of customer records and interactions results in increased search times and greater difficulty locating specific customer records  With the new agent inbox based on SAP HANA, users can more easily search for relevant experts – whether in their own team or elsewhere in the organization – to dispatch/escalate issues to the best-suited employee roles  A new interactive work distribution dashboard provides supervisors with actionable insights into the workload of their teams and employees  Searches in the interaction center are significantly faster, including account searches, interaction history, and the customer fact sheet Decrease average handling time by 36% Improve Reduce service-level agreement (SLA) compliance 5% service cost 10% KPI improvements are high-level estimates and will have to be validated for each customer situation. With SAP Business Suite on SAP HANA
  17. 17. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 17Public Today Multichannel marketing management Business value for marketing  Missed market opportunities due to lack of visibility and inefficient processes  Data explosion, driven by new level of connectivity of consumers via mobile devices and social networks  Data in disparate data sources, which prevents true 360-degree view of the customer  Agile marketing to respond faster to changing market dynamics and opportunities  New analytical, data mining functionality for Big Data (social media, predictive)  Near real-time monitoring and reporting on marketing 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 by 0.5% Optimize Increase return on marketing investments by 15% customer satisfaction by 40% KPI improvements are high-level estimates and will have to be validated for each customer situation. With SAP Business Suite on SAP HANA
  18. 18. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 18Public Next step Business scenario recommendation and value discovery workshop  SAP offers a proven methodology and approach to discover the customer-specific business improvement areas and quantify value potential.  We suggest such a workshop with your line-of-business and IT experts.  As starting point, we recommend a performance and usage analysis of your current system.
  19. 19. © 2013 SAP AG or an SAP affiliate company. All rights reserved. Thank you
  20. 20. © 2013 SAP AG or an SAP affiliate company. All rights reserved. Appendix with detailed customer cases
  21. 21. 21© 2013 SAP AG or an SAP affiliate company. All rights reserved. Real customer cases (based on SAP Value Engineering)
  22. 22. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 22Public Reference automotive Summary of validated scenarios (combined findings) Feasibility Businessvalue Legend LowHigh Low High Real-time material coverage and dynamic planning SAP Business Suite on SAP HANA SAP HANA products SAP HANA Platform Real-time project management reporting Detailed claim level analysis for warranty cost and incidence Equipment reliability analysis and prevention failure 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 Real-time quality assurance Parts management Real-time processing quality management notifications Costing and financials Phase – deployment road map 1 Short term CRM: Detailed claim level analysis (ability to carry to warranty analysis at detailed claim level for better analysis of failure) Production: Real-time quality assurance (free test capacity by reduced test times; TCO reduction via reduced long time test; time-to-market improvement; reduction of lead times) Financials and costing: Profitability analysis, faster financial close, optimized cost management / controlling 2 Medium term SCM: Real-time material coverage and dynamic planning (real-time inventory analysis and ability to simulate alternate production plan and optimize production mix) SCM: Parts management (reduction of material costs due to demand bundling; reduction of planning costs; increase revenue due to price optimization; reduction of warranty claims) PLM: Real-time project management reporting (optimized project reporting and decision making) SAP HANA use case SAP HANA use cases mapped to industry value map end-to-end solutions
  23. 23. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 23Public SAP Business Suite on SAP HANA 7,3 21,3 21,38,3 8,3 20,6 1,7 5 25 0 10 20 30 40 50 60 70 80 2013 Phase 1 Phase 2 Phase 3 Costs SoH Applications Platform $ Based on actual SAP customer engagements Annual benefits, SAP HANA Platform: US$25 million Annual benefits, applications powered by SAP HANA: US$21 million Annual benefits, SAP Business Suite on SAP HANA: US$21 million Estimated deployment costs Total transition cost: to be determined SAP HANA Platform: Anything built on the platform that is customer-specific – new business processes and business models SAP HANA products: SAP NetWeaver BW powered by SAP HANA; high-performance apps (HPAs); applications – mapped to inventory value map (IVM) end-to-end (E2E) solutions Currently available functionality (SP0, 1, 2) – 23 scenarios mapped to IVM E2E solutions, and planned functionality(all of the E2E solutions on the IVM are in scope) SAP HANA Platform SAP HANA products SoH = SAP Business Suite on SAP HANA In millions of US$ More information: Indranil Som; Ben Gruber; John Kohlmeyer Annual revenue: US$50 billion Reference automotive OEM SAP HANA Platform
  24. 24. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 24Public 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. Spare parts visibility and planning Automotive Business context and goals  Ability to scan and analyze 8 million SKUs to improve and optimize spare part availability at the lowest cost to ensure customer satisfaction and increase spare parts sale Business challenges  Huge volume of spare parts SKUs to manage; low customer satisfaction due to unavailability of spare parts at the time of need by the customer Process innovations  Ability to scan and analyze 8 million SKUs across the whole supply chain and visualize all related factors (current inventory, location, statistical forecast, reservations, and more) Contribution of SAP HANA  Ability to forecast, plan, and optimize replenishment of spare parts taking into account multiple parameters (such as current inventory, predictive demand from existing car fleet in the market, customer appointments) Value drivers/KPIs  Customer satisfaction index, spare parts sales, spare parts inventory Innovation scope SAP HANA products (HPAs, Apps) End-to-end (E2E) solution Automotive – service parts management Value potential 5 Feasibility 3 Low High 1 5 Low High 1 5
  25. 25. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 25Public 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. Fast financial closing Automotive Innovation scope SAP HANA products (HPAs, Apps) End-to-end (E2E) solution Automotive – financial performance management Value potential 3 Feasibility 4 Low High 1 5 Low High 1 5 Business context and goals  Reduce data to be loaded on SAP NetWeaver BW using in-memory database  Avoid system overwork during critical period  Improve data quality  Simplify system management during critical closing period  Reduce effort auditors spend on reviewing data  Improve analysis and reporting productivity (using SAP HANA also during nonclosing period)  Reduce IT and finance overtime working cost during weekend  Improve IT efficiency writing report with SAP BusinessObjects Web Intelligence software Business challenges  Reduce time to close financial books  React quickly at business needs to post and check books during critical month-end closing period  Improve efficiency and effectiveness of financial process Process innovations  Check posting correction in near real time, eliminating wait time to upload to SAP NetWeaver BW  Help ensure real-time visibility and reporting of all GL posting in ERP system  Improve speed and quality of report generation  Reduce data to be loaded in SAP NetWeaver BW Contribution of SAP HANA  Reduce resident data on SAP NetWeaver BW (FI,AP,AR,CP-PA no longer loaded)  Avoid SAP NetWeaver BW project cost (archiving and optimization) Value drivers/KPIs  Finance FTE productivity  SAP NetWeaver BW hardware cost  SAP NetWeaver BW project cost for optimization and archiving
  26. 26. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 26Public 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. Motor engine test bench: Real-time quality assurance Automotive Business context and goals  The engine test bench processes are substantial for all automotive and engine OEMs because they affect one of the core products/components Business challenges  Besides the efforts and expenses for test runs, the growing data volumes must be handled and stored. These data is expected to build the foundation for pattern deduction and provide an information source for new high-value services (prediction and so forth) Process innovations  Analysis of engine test data from machine data, production process data, and quality management data; connection to vehicles for telemetric data, creation of special pattern, knowledge basis for service partners Contribution of SAP HANA  Analysis and prediction of data sets out of engine, enterprise resource planning (ERP), quality management (QM), predictive analytics; reduction of test times by over 10x Value drivers/KPIs  Free test capacity by reduced test times; TCO reduction via reduced long-time test; time-to- market improvement; reduction of lead times Innovation scope SAP Business Suite on SAP HANA (now and future) End-to-end (E2E) solution Automotive – make to order Value potential 5 Feasibility 2 Low High 1 5 Low High 1 5
  27. 27. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 27Public 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. Equipment reliability analysis and prevention failure Automotive Business context and goals  Based on equipment performance characteristics provided by telematics, alerts are sent to operators/owners and local dealers when equipment diagnostics detect failure, potential failure, or other critical issues Business challenges  The amount of data generated and available for analysis is enormous, and tools required for effectively analyzing and using the data have not previously existed Process innovations  Gain insight and knowledge out of Big Data Contribution of SAP HANA  Store telematics data in SAP HANA and perform ad hoc analysis of data to identify performance characteristics in real time to predict machine failures and trigger alerts Value drivers/KPIs  Reduce warranty cost; optimize vehicle part durability; reduce recall liability costs Innovation scope SAP Business Suite on SAP HANA (now and future) End-to-end (E2E) solution Automotive – embedded product compliance Value potential 2 Feasibility 3 Low High 1 5 Low High 1 5
  28. 28. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 28Public 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. Real-time processing of quality management notifications Automotive Business context and goals  Quality management notifications are created and processed in QM systems or other applications based on which specific problem is described; actions and root cause analysis are initiated Business challenges  Enormous amounts of data from various production sites, facilities, and lines must be collected and consolidated; optimal analysis and graphical display of results must be available in real time Process innovations  Linkage of all relevant data sources to one common data pool; retrieval of real-time data from QM systems; fast generation of reporting and analysis Contribution of SAP HANA  Prompt analysis of the vast information from the QM notifications in a consolidated manner could be the basis for faster decisions within the production process to assure high quality requirements Value drivers/KPIs  Reduction of re-work; increase of transparency in QM and assurance of high QM standards; reduce scrap Innovation scope SAP Business Suite on SAP HANA (now and future) End-to-end (E2E) solution Automotive – embedded product compliance Value potential 2 Feasibility 3 Low High 1 5 Low High 1 5
  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. Detailed claim-level analysis for warranty cost and incidence Automotive Business context and goals  Detailed claim level analysis can help reduce warranty claims Business challenges  There are performance issues in calculation of IPTV (incidents per thousand vehicles); root cause analysis by claim type and by individual claim is not possible due to high volume of data Process innovations  Warranty claim analysis by individual, vehicle, and claim type will be possible Contribution of SAP HANA  Ability to drill down and analyze data at claims level, which can then be linked to root causes of failure, can lead to better analysis of failures and thus identification of corrective measures to be taken Value drivers/KPIs  Warranty claims/expenses Innovation scope SAP Business Suite on SAP HANA (now and future) End-to-end (E2E) solution Automotive – service parts management Value potential 2 Feasibility 3 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. Real-time material coverage and dynamic planning Automotive Business context and goals  An inventory dashboard is available to buyers to check gaps in inventory availability at the start of a day to plan for stock-out situations, but it does not support planning based on available inventory Business challenges  There is no capability to carry out dynamic planning based on available inventory and production plans, as system does not support processing of such huge amount of data (takes more than 6 hours) Process innovations  Ability to simulate alternate production plan quickly at the beginning of a day/shift will enable optimization of production capacity and material available Contribution of SAP HANA  Simulate alternate production plans on the fly; drill down to Nth level of bill of materials, on the fly, and get more accurate insight into inventory; ability to optimize production mix based on product profitability and market demands Value drivers/KPIs  Production/revenue, inventory level (raw materials, components) Innovation scope SAP Business Suite on SAP HANA (now and future) End-to-end (E2E) solution Automotive – supply chain execution Value potential 5 Feasibility 2 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. Original parts management Automotive Business context and goals  Company needs the ability to reduce investment in original parts and have the right parts at the right time and place Business challenges  Matching of original parts requirements and current inventory is not visible on a global and regional level; simulation of plan data cannot be executed due to large data volumes; complex analysis requests takes several hours Process innovations  Worldwide original parts requirements vs. inventory matching with early alerting; global planning and simulation of original parts per company brand; predictive maintenance through automatic defect detection Contribution of SAP HANA  Insight into current original parts requirements vs. inventory matching in real time; central data platform for prediction and simulations Value drivers/KPIs  Reduction of material costs due to demand bundling; reduction of planning costs; increase revenue due to price optimization; reduction of warranty claims Innovation scope SAP Business Suite on SAP HANA (now and future) End-to-end (E2E) solution Automotive – service parts management Value potential 4 Feasibility 4 Low High 1 5 Low High 1 5

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