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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 0Internal
Fred Isbell
Senior Director
SAP Digital Business Services Marketing
Building a Business Case for Cloud and
Digital Transformation
Issues, Considerations, and Best Practices
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 1Customer
Agenda
 Market Context
 Innovation Adoption 101 and Digital Transformation
 Navigating Digital Transformation Technologies
– Third Platform, Nexus of Forces and Digital Transformation
– Background, Customer Successes, & Project Considerations for Cloud, Social, Big Data
and The Internet of Things (IoT)
 Best Practices for Making a Business Case for Innovation
 Wrap-up
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Customer
Market Context:
Making a Business Case for the Cloud
The “Third Platform” (IDC) Digital Transformation
The “Hype Cycle” (Gartner)Innovation Adoption
The Internet of Things (IoT)
Customer Challenges
IDC predicts IoT to reach
$1.7B in 2020 from
$655B in 2014
Innovation 101 & Digital
Transformation
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Customer
Business Context
The Pace of Change is only Accelerating
0% 10% 20% 30% 40% 50% 60% 70%
Pace of Change (%)
Q: Has the pace of change increased
for your organization?
No, Not at All Yes, I Think So Absolutely
33%
61%
6%
Source: Incite Marketing Customer Study, 2015
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Customer
Audience Quiz
Who Pioneered These Innovations?
First Fortune 500 Web Site
First Internet Firewall
First Internet & TCP/IP Networking
First VPN/Internet Tunneling Software
First Internet Search Engine
First use of “Business Intelligence” (BI)
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Customer
Audience Quiz
Who Pioneered These Innovations?
First Fortune 500 Web Site
First Internet Firewall
First Internet & TCP/IP Networking
First VPN/Internet Tunneling Software
First Internet Search Engine
First use of “Business Intelligence” (BI)
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Customer
Innovation Adoption 101
The Model & Segmentation
Innovation Adoption:
• A model that classifies
adopters of innovations
based on their level of
readiness to accept new
ideas
• Innovative adoption
characteristics are assigned
to groups -- all innovations
go through a predictable
process before becoming
widely adopted.
• The groups consist of early
adopters, early majority, late
majority, and laggards
Source: dictionary.com
Source: Rogers, G. Moore, MIT Sloan/CAP Gemini, Wikipedia
“Crossing the chasm”
Early adopters achieve:
+9% revenue creation
+26% impact to profitability,
+12% market valuation
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Customer
Innovation Adoption 101
Time to Innovation Adoption
Source: Rogers, Moore, McKinsey, Wikipedia
• Inflection point (curve begins to slow)
= point of “critical mass”
• Key -- get there quickly, whether users
or product volume, etc.
• Failure to “cross the chasm” (Geoffrey
Moore) or reach critical mass =
doomed to a smaller, sub-optimal
market and much smaller market
share
Source: “No ordinary disruption”, McKinsey, May 2015
The “Need for Speed” has never been greater
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Customer
The Hype Cycle: riding the “roller coaster” of innovation
The hype cycle is a branded
graphical presentation
developed and used by
American information
technology (IT) research and
advisory firm Gartner for
representing the maturity,
adoption and social application
of specific technologies. The
hype cycle provides a graphical
and conceptual presentation of
the maturity emerging
technologies through five
phases
Source: https://en.wikipedia.org/wiki/Hype_cycle
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Customer
Why Do We Need to Respond to New Technology and
Innovations?
"Innovation has created a digital
economy and digitization is
affecting all businesses and all
industries. So how do you make
this transition to digital? Simple.
Every business in here today is
in a state of transformation”.
Bill McDermott, CEO
May 2015
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Customer
Digital Transformation – A Definition
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Customer
Digital Transformation
The common issues we hear
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Customer
SAP Digital Business Framework
Navigating Innovation
Technologies
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Customer
My Innovation Journey & Navigation
IBM 3270
Terminal
c.1982
Compaq
“Portable”
c. 1983
Tech
Stack
c.2015
Desktop,
Laptop &
iPAQ PDA
c. 1998
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 16Customer
IDC Perspective
Adoption of 3rd Platform Technologies
Enterprises are using 3rd platform technologies to create value and competitive
advantage through new offerings, new business models, and new relationships
Source: IDC
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 17Customer
SAP and the Transition to the Third Platform
Innovation Solution Accelerators
SAP and the Transition to the
3rd Platform
“SAP, in its 40-year history, has made the
journey from the 1st Platform (mainframes) to
the 2nd Platform (client/server) and is laying
the groundwork to shift to the 3rd Platform.
SAP now delivers a growing portfolio of 3rd
Platform applications. In support of these
offerings, SAP also provides a set of targeted,
fixed-priced, and scoped packages called SAP
Rapid Deployment solutions to address the
challenges for organizations in transitioning to
the 3rd Platform.”
Henry Morris, Senior VP, Worldwide Software and
Services Research, IDC
Source: IDC
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 18Customer
Gartner Perspective
The Nexus of Forces
• “The Nexus of Forces is the
convergence and mutual
reinforcement of social,
mobility, cloud and information
patterns that drive new
business scenarios.
• Although these forces are
innovative and disruptive on
their own; together they are
revolutionizing business and
society, disrupting old
business models and creating
new leaders.
• The Nexus is the basis of the
technology platform of the
future.”
Source: Gartner
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 19Customer
“More than 60% of CEOs expect 15-50% of their earnings growth in the next 5
years to come from technology-enabled business innovations.”
McKinsey study, 2013
Innovation Technologies Will Drive Digital Transformation
Cloud
Abundance of cost-
effective computational
power and storage
Social
Connected business
and social networks
Big
Data
Real-time analytics
for behavioral and
predictive insights
Internet of Things (IoT)
Machine to
Machine communications
and sensor-based Data
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 20Customer
Innovation Technologies: Cloud Computing
 Software as a Service
(SaaS)
 Platform as a Service
(Paas)
 Infrastructure as a Service
(IaaS)
 Business Process as a
Service
(BaaS)
 Public Cloud and Private
Clouds
 Collaboration & Business
Networks
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 21Customer
Cloud Deployment Models
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 22Customer
Opportunities & Project Considerations
Cloud Computing
 Utilize or build upon cloud technologies to
create business-relevant functionality
 Collaboration tools and integration are to key
simplifying processes
 Mobility is a key argument for and a driver of
cloud solutions
 Big data is synergistic with the cloud – much
of the use of big data originates in the cloud
 Digital marketing & Cloud integration is key
to making this happen
 Cloud computing is transforming the way that
application testing is performed – testing as
a service (TaaS?)
 Think about the business need and stress
how cloud helps you deliver against those
needs more effectively
Source: PAC 2013
“Cloud computing is
a game-changing
concept (and) is
really a way of
provisioning and
using technology,
not a technology in
itself!”
Cloud readiness
varies by region
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 23Customer
SAP Customer Success: McLaren
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 24Customer
SAP Customer Success
MIT
Migration to Suite on HANA in the
HANA Enterprise Cloud (HEC) builds
foundation for
 Real-time access to transactional data
 HANA Cloud Platform (HCP)
 SAP Fiori
 SAP S/4
Enable a flexible staffing model to
rapidly gain access to specialized
technical skills and quickly respond to
community needs
 Enable staff to focus on MIT-specific,
differentiated needs
 Disaster Recovery (DR) availability outside of
Boston metro area
 Improved performance
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 25Customer
Innovation Technologies
Social Media and Digital Transformation
 Metcalfe’s Law: the value of a
network is proportional to the
square of the number of connected
users (a network’s value grows
exponentially)
 A variation Reed’s Law speaks
specifically to the utility obtained
from scaling social networks
 Pull versus Push
 Best Practices: Learn, Observe,
Listen, Jump in and Actively
Participate
 Blurs the line between work and
private life, get used to it, it’s not
going away!
“Social media spending is currently 11%
of marketing budgets and is expected to
grow to 14% in the next 12 months and
24% in the next five years.”
Duke CMO Study 2015
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 26Customer
Opportunities & Project Considerations
Social Media and Digital Transformation
 Embrace key enabling technologies: Cloud,
Big Data/ Analytics, Mobility, Social Media
and the ubiquitous Internet
 Enable the user/customer experience: Digital
products & services, digital sales and
marketing and Digital customer Interaction
 Drive a transformation of your Business &
Technology Strategy and build a culture of
innovation, participation and collaboration
 Enable collaboration across the enterprise
and beyond traditional enterprise borders
 Become strategic partner for the digital
transformation process and maintain
relevance by jumping in & supporting
“Successful digital transformation comes not
from implementing new technologies but
from transforming your organization to take
advantage of the possibilities that new
technologies provide.”
MIT Center for Digital Business
Source: PAC 2013
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 27Customer
SAP Customer Success
The Digitalist
 SAP platform for Thought
Leadership and Executive
Research
 BLOG contributions from internal
and external thought leaders
 New Executive Quarterly tablet
magazine
 Executive Research including
white papers, infographics and
more
 All shared & promoted through
social media marketing
 2M+ page views YTD, 900K
unique visitors
Executive Research
Executive Quarterly Thought Leadership
BLOGS
www.digitalistmag.com
Social Media Sharing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 28Customer
Innovation Technologies
Big Data and Analytics
 Navigating the Data and
Information Explosion
 Business Intelligence
 Rise of the Information Worker
 Real-Time Information Access
 Big Data on top of Next-
Generation In-memory
Database Technology is the
new “Killer App”
 Dashboards & Predictive
Analytics
 “Brave New World” of Sports
Mr. Data
Brent Spiner
“Father of BI”
Howard Dresner
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 29Customer
Opportunities & Project Considerations
Big Data and Analytics
 Add social media monitoring as new types of
data are becoming available (including web
user statistics, social media, etc.)
 Major opportunity for real-time data analytics
 Prepare for your Big Data deployments – start
by being in a “look-and-learn” mode
 Include business-oriented expertise in your
skill development
 Customer behavior analysis for the next wave
of e-commerce and social and digital
transformation
 Prepare for and embrace predictive analytics
and data science
“Ultimately, companies
are not looking for Big
Data solutions. They are
looking for business
outcomes. Service and
technology providers need
to solve business
problems”
Source: PAC
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 30Customer
SAP Customer Success
NHL.com
 Real-time Statistics w/ SAP HANA
Enterprise Cloud (HEC):
 NHL.com powered by SAP HANA
Enterprise Cloud, SAP analytics and
data visualization
 Goal: increase fan engagement &
deepen loyalty
 Includes new design, introduction of
enhanced statistics & visualization
capabilities
 Playoff prediction tool/bracket challenge
 Strong results:
– 98 years worth of NHL statistics
– 25% increase in new visitors since the
new stats section was launched
– 45% increase in time and engagement on
site NHL Customer Testimonial Video
“The Late One”:
NHL Stats:
0 GP, 0 G 0 A 0 Pts 0 PM
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 31Customer
The Internet of Things (IoT)
 Massive amounts of data
from peoples, sensors &
devices – and growing
rapidly
 Gartner projects IoT will
increase nearly 30-fold from
about 900 million connected
devices in 2009 to more
than 26 billion by 2020
 IDC projects IoT spending in
2015 is expected to exceed
$1.7 trillion and 15 billion
devices and grow to $3
trillion and nearly 30 billion
devices by 2020
Source: IDC, Gartner, SAP 2015
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 32Customer
Smart metering for a North American
leader in energy distribution
Honda R&D -- Connected cars & using
sensors and IoT for a sense-and-
respond paradigm to increase efficiency
SAP Customer Success
Internet of Things (IoT)
Air as a service
Engine testing in real-time linking
testing applications to SAP analytics
Business & IT Outcomes
Making a Business Case for
Innovation
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 34Customer
Making a Business Case for Innovation
Define the cost of what's not working:
 Examine inefficiencies
 Find areas for simplification
Move beyond the buzzwords to the heart of the
business problems:
 Get beyond “geek speak” (and SAPanese)
 Define the individual problems that the cloud can address
 Understand that the business case needs to be specific and
tied to an overall plan:
Define a path to success -- define what's wrong,
determine how to fix, and demonstrate why right
path to fix
Describe the current state, delineate a path to the fix
points and outline cost advantages and build a detailed
plan
3 Secrets to creating a business case for
cloud computing
http://www.infoworld.com/article/2619229/cloud-
computing/3-secrets-to-creating-a-business-case-
for-cloud-computing.html
http://www.digitalistmag.com/cio-
knowledge/2016/08/22/business-case-for-cloud-and-cloud-
solution-maturity-04410392
Wrap-up
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 36Customer
Navigate Digital Transformation with Leading & Innovative
Consulting & Systems Integrators (CSIs) & SAP Partners
 The Gartner Magic Quadrant (MQ)
report provides comparisons of
vendors’ products and services,
helping customers with vendor
selection by providing a detailed
analysis of products and services
 Gartner evaluates service providers
on their Ability to Execute and
Completeness of Vision
 SAP Service & Support is a leader in
the latest 2015 Gartner MQ for SAP
Services
 Click here for the latest report
Source: Gartner July 2015
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 37Customer
Implement Solutions Quickly, Affordably, and Predictably
with Outcome-Based Services from SAP
 Deliver value throughout the
implementation and dramatically
reduce cost, risk, and time to value
 Achieve up to 40% faster time to value
with innovative implementation
approaches
 Get up and running quickly with rapid-
deployment solutions
 Accelerate project delivery with
outcome-focused methodology,
preconfigured processes and iterative
deployment
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 38Customer
Run Live. Run Simple.
with SAP Digital Business Services
Digital Transformation Success Starts with Aligning Business and IT on
your Digital Business Strategy
www.sap-digital-business-
services.com/
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 39Customer
Making Digital Transformation Possible (Video)
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 40Customer
Where to Find More Information
• SAP Services Hub: www.sapserviceshub.com/h/
• SAP Services on SAP Community Network (SCN):
scn.sap.com/community/services
• SAP Digitalist: digitalistmag.com
• SAP Digital Business Services on sap.com:
www.sap-digital-business-services.com/
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 41Customer
7 Key Points to Take Home
 Digital Transformation and Innovation are
the foundation for the future – starting NOW
 You must think differently and address a
new scale of users, devices, applications,
and data & content in a whole new way than
you are used to
 Look to SAP and customers and partners
for leadership examples and attend key
events such as SAPinsider, SAPPHIRE
NOW/ASUG, and SAP TechED to learn and
experience more
 Address the requirement for business
outcomes in your projects and make a solid
business case for innovation
 Live next-generation innovative solutions:
embrace and experience big data &
analytics and grow team collaboration with
cloud-based tools & solutions
 Subscribe to and read key sources of
Innovations and Thought Leadership such
as the SAP Digitalist and SAPinsider
magazine and on-line
 It’s a great time in the industry and our
careers to work with SAP solutions!
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Thank You!
Fred Isbell
Senior Director, Head of Thought Leadership and BMO
SAP Digital Business Services Marketing
fred.isbell@sap.com
www.sap.com/services
Twitter: Fmisbell
Facebook: Fred M Isbell
Linked In: www.linkedin.com/pub/fred-
isbell/0/827/903Edit
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 43Customer
© 2016 SAP SE or an SAP affiliate company.
All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an
SAP affiliate company.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE
(or an SAP affiliate company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional
trademark information and notices.
Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.
National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind,
and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or
SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and
services, if any. Nothing herein should be construed as constituting an additional warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related
presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated
companies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be
changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment,
promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties
that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

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Fred Isbell SAPinsider Projects 2016 Session: Making a Business Case for Cloud and Digital Transformation

  • 1. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 0Internal Fred Isbell Senior Director SAP Digital Business Services Marketing Building a Business Case for Cloud and Digital Transformation Issues, Considerations, and Best Practices
  • 2. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 1Customer Agenda  Market Context  Innovation Adoption 101 and Digital Transformation  Navigating Digital Transformation Technologies – Third Platform, Nexus of Forces and Digital Transformation – Background, Customer Successes, & Project Considerations for Cloud, Social, Big Data and The Internet of Things (IoT)  Best Practices for Making a Business Case for Innovation  Wrap-up
  • 3. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Customer Market Context: Making a Business Case for the Cloud The “Third Platform” (IDC) Digital Transformation The “Hype Cycle” (Gartner)Innovation Adoption The Internet of Things (IoT) Customer Challenges IDC predicts IoT to reach $1.7B in 2020 from $655B in 2014
  • 4. Innovation 101 & Digital Transformation
  • 5. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Customer Business Context The Pace of Change is only Accelerating 0% 10% 20% 30% 40% 50% 60% 70% Pace of Change (%) Q: Has the pace of change increased for your organization? No, Not at All Yes, I Think So Absolutely 33% 61% 6% Source: Incite Marketing Customer Study, 2015
  • 6. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Customer Audience Quiz Who Pioneered These Innovations? First Fortune 500 Web Site First Internet Firewall First Internet & TCP/IP Networking First VPN/Internet Tunneling Software First Internet Search Engine First use of “Business Intelligence” (BI)
  • 7. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Customer Audience Quiz Who Pioneered These Innovations? First Fortune 500 Web Site First Internet Firewall First Internet & TCP/IP Networking First VPN/Internet Tunneling Software First Internet Search Engine First use of “Business Intelligence” (BI)
  • 8. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Customer Innovation Adoption 101 The Model & Segmentation Innovation Adoption: • A model that classifies adopters of innovations based on their level of readiness to accept new ideas • Innovative adoption characteristics are assigned to groups -- all innovations go through a predictable process before becoming widely adopted. • The groups consist of early adopters, early majority, late majority, and laggards Source: dictionary.com Source: Rogers, G. Moore, MIT Sloan/CAP Gemini, Wikipedia “Crossing the chasm” Early adopters achieve: +9% revenue creation +26% impact to profitability, +12% market valuation
  • 9. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Customer Innovation Adoption 101 Time to Innovation Adoption Source: Rogers, Moore, McKinsey, Wikipedia • Inflection point (curve begins to slow) = point of “critical mass” • Key -- get there quickly, whether users or product volume, etc. • Failure to “cross the chasm” (Geoffrey Moore) or reach critical mass = doomed to a smaller, sub-optimal market and much smaller market share Source: “No ordinary disruption”, McKinsey, May 2015 The “Need for Speed” has never been greater
  • 10. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Customer The Hype Cycle: riding the “roller coaster” of innovation The hype cycle is a branded graphical presentation developed and used by American information technology (IT) research and advisory firm Gartner for representing the maturity, adoption and social application of specific technologies. The hype cycle provides a graphical and conceptual presentation of the maturity emerging technologies through five phases Source: https://en.wikipedia.org/wiki/Hype_cycle
  • 11. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Customer Why Do We Need to Respond to New Technology and Innovations? "Innovation has created a digital economy and digitization is affecting all businesses and all industries. So how do you make this transition to digital? Simple. Every business in here today is in a state of transformation”. Bill McDermott, CEO May 2015
  • 12. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Customer Digital Transformation – A Definition
  • 13. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Customer Digital Transformation The common issues we hear
  • 14. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Customer SAP Digital Business Framework
  • 16. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Customer My Innovation Journey & Navigation IBM 3270 Terminal c.1982 Compaq “Portable” c. 1983 Tech Stack c.2015 Desktop, Laptop & iPAQ PDA c. 1998
  • 17. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 16Customer IDC Perspective Adoption of 3rd Platform Technologies Enterprises are using 3rd platform technologies to create value and competitive advantage through new offerings, new business models, and new relationships Source: IDC
  • 18. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 17Customer SAP and the Transition to the Third Platform Innovation Solution Accelerators SAP and the Transition to the 3rd Platform “SAP, in its 40-year history, has made the journey from the 1st Platform (mainframes) to the 2nd Platform (client/server) and is laying the groundwork to shift to the 3rd Platform. SAP now delivers a growing portfolio of 3rd Platform applications. In support of these offerings, SAP also provides a set of targeted, fixed-priced, and scoped packages called SAP Rapid Deployment solutions to address the challenges for organizations in transitioning to the 3rd Platform.” Henry Morris, Senior VP, Worldwide Software and Services Research, IDC Source: IDC
  • 19. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 18Customer Gartner Perspective The Nexus of Forces • “The Nexus of Forces is the convergence and mutual reinforcement of social, mobility, cloud and information patterns that drive new business scenarios. • Although these forces are innovative and disruptive on their own; together they are revolutionizing business and society, disrupting old business models and creating new leaders. • The Nexus is the basis of the technology platform of the future.” Source: Gartner
  • 20. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 19Customer “More than 60% of CEOs expect 15-50% of their earnings growth in the next 5 years to come from technology-enabled business innovations.” McKinsey study, 2013 Innovation Technologies Will Drive Digital Transformation Cloud Abundance of cost- effective computational power and storage Social Connected business and social networks Big Data Real-time analytics for behavioral and predictive insights Internet of Things (IoT) Machine to Machine communications and sensor-based Data
  • 21. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 20Customer Innovation Technologies: Cloud Computing  Software as a Service (SaaS)  Platform as a Service (Paas)  Infrastructure as a Service (IaaS)  Business Process as a Service (BaaS)  Public Cloud and Private Clouds  Collaboration & Business Networks
  • 22. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 21Customer Cloud Deployment Models
  • 23. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 22Customer Opportunities & Project Considerations Cloud Computing  Utilize or build upon cloud technologies to create business-relevant functionality  Collaboration tools and integration are to key simplifying processes  Mobility is a key argument for and a driver of cloud solutions  Big data is synergistic with the cloud – much of the use of big data originates in the cloud  Digital marketing & Cloud integration is key to making this happen  Cloud computing is transforming the way that application testing is performed – testing as a service (TaaS?)  Think about the business need and stress how cloud helps you deliver against those needs more effectively Source: PAC 2013 “Cloud computing is a game-changing concept (and) is really a way of provisioning and using technology, not a technology in itself!” Cloud readiness varies by region
  • 24. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 23Customer SAP Customer Success: McLaren
  • 25. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 24Customer SAP Customer Success MIT Migration to Suite on HANA in the HANA Enterprise Cloud (HEC) builds foundation for  Real-time access to transactional data  HANA Cloud Platform (HCP)  SAP Fiori  SAP S/4 Enable a flexible staffing model to rapidly gain access to specialized technical skills and quickly respond to community needs  Enable staff to focus on MIT-specific, differentiated needs  Disaster Recovery (DR) availability outside of Boston metro area  Improved performance
  • 26. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 25Customer Innovation Technologies Social Media and Digital Transformation  Metcalfe’s Law: the value of a network is proportional to the square of the number of connected users (a network’s value grows exponentially)  A variation Reed’s Law speaks specifically to the utility obtained from scaling social networks  Pull versus Push  Best Practices: Learn, Observe, Listen, Jump in and Actively Participate  Blurs the line between work and private life, get used to it, it’s not going away! “Social media spending is currently 11% of marketing budgets and is expected to grow to 14% in the next 12 months and 24% in the next five years.” Duke CMO Study 2015
  • 27. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 26Customer Opportunities & Project Considerations Social Media and Digital Transformation  Embrace key enabling technologies: Cloud, Big Data/ Analytics, Mobility, Social Media and the ubiquitous Internet  Enable the user/customer experience: Digital products & services, digital sales and marketing and Digital customer Interaction  Drive a transformation of your Business & Technology Strategy and build a culture of innovation, participation and collaboration  Enable collaboration across the enterprise and beyond traditional enterprise borders  Become strategic partner for the digital transformation process and maintain relevance by jumping in & supporting “Successful digital transformation comes not from implementing new technologies but from transforming your organization to take advantage of the possibilities that new technologies provide.” MIT Center for Digital Business Source: PAC 2013
  • 28. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 27Customer SAP Customer Success The Digitalist  SAP platform for Thought Leadership and Executive Research  BLOG contributions from internal and external thought leaders  New Executive Quarterly tablet magazine  Executive Research including white papers, infographics and more  All shared & promoted through social media marketing  2M+ page views YTD, 900K unique visitors Executive Research Executive Quarterly Thought Leadership BLOGS www.digitalistmag.com Social Media Sharing
  • 29. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 28Customer Innovation Technologies Big Data and Analytics  Navigating the Data and Information Explosion  Business Intelligence  Rise of the Information Worker  Real-Time Information Access  Big Data on top of Next- Generation In-memory Database Technology is the new “Killer App”  Dashboards & Predictive Analytics  “Brave New World” of Sports Mr. Data Brent Spiner “Father of BI” Howard Dresner
  • 30. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 29Customer Opportunities & Project Considerations Big Data and Analytics  Add social media monitoring as new types of data are becoming available (including web user statistics, social media, etc.)  Major opportunity for real-time data analytics  Prepare for your Big Data deployments – start by being in a “look-and-learn” mode  Include business-oriented expertise in your skill development  Customer behavior analysis for the next wave of e-commerce and social and digital transformation  Prepare for and embrace predictive analytics and data science “Ultimately, companies are not looking for Big Data solutions. They are looking for business outcomes. Service and technology providers need to solve business problems” Source: PAC
  • 31. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 30Customer SAP Customer Success NHL.com  Real-time Statistics w/ SAP HANA Enterprise Cloud (HEC):  NHL.com powered by SAP HANA Enterprise Cloud, SAP analytics and data visualization  Goal: increase fan engagement & deepen loyalty  Includes new design, introduction of enhanced statistics & visualization capabilities  Playoff prediction tool/bracket challenge  Strong results: – 98 years worth of NHL statistics – 25% increase in new visitors since the new stats section was launched – 45% increase in time and engagement on site NHL Customer Testimonial Video “The Late One”: NHL Stats: 0 GP, 0 G 0 A 0 Pts 0 PM
  • 32. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 31Customer The Internet of Things (IoT)  Massive amounts of data from peoples, sensors & devices – and growing rapidly  Gartner projects IoT will increase nearly 30-fold from about 900 million connected devices in 2009 to more than 26 billion by 2020  IDC projects IoT spending in 2015 is expected to exceed $1.7 trillion and 15 billion devices and grow to $3 trillion and nearly 30 billion devices by 2020 Source: IDC, Gartner, SAP 2015
  • 33. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 32Customer Smart metering for a North American leader in energy distribution Honda R&D -- Connected cars & using sensors and IoT for a sense-and- respond paradigm to increase efficiency SAP Customer Success Internet of Things (IoT) Air as a service Engine testing in real-time linking testing applications to SAP analytics Business & IT Outcomes
  • 34. Making a Business Case for Innovation
  • 35. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 34Customer Making a Business Case for Innovation Define the cost of what's not working:  Examine inefficiencies  Find areas for simplification Move beyond the buzzwords to the heart of the business problems:  Get beyond “geek speak” (and SAPanese)  Define the individual problems that the cloud can address  Understand that the business case needs to be specific and tied to an overall plan: Define a path to success -- define what's wrong, determine how to fix, and demonstrate why right path to fix Describe the current state, delineate a path to the fix points and outline cost advantages and build a detailed plan 3 Secrets to creating a business case for cloud computing http://www.infoworld.com/article/2619229/cloud- computing/3-secrets-to-creating-a-business-case- for-cloud-computing.html http://www.digitalistmag.com/cio- knowledge/2016/08/22/business-case-for-cloud-and-cloud- solution-maturity-04410392
  • 37. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 36Customer Navigate Digital Transformation with Leading & Innovative Consulting & Systems Integrators (CSIs) & SAP Partners  The Gartner Magic Quadrant (MQ) report provides comparisons of vendors’ products and services, helping customers with vendor selection by providing a detailed analysis of products and services  Gartner evaluates service providers on their Ability to Execute and Completeness of Vision  SAP Service & Support is a leader in the latest 2015 Gartner MQ for SAP Services  Click here for the latest report Source: Gartner July 2015
  • 38. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 37Customer Implement Solutions Quickly, Affordably, and Predictably with Outcome-Based Services from SAP  Deliver value throughout the implementation and dramatically reduce cost, risk, and time to value  Achieve up to 40% faster time to value with innovative implementation approaches  Get up and running quickly with rapid- deployment solutions  Accelerate project delivery with outcome-focused methodology, preconfigured processes and iterative deployment
  • 39. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 38Customer Run Live. Run Simple. with SAP Digital Business Services Digital Transformation Success Starts with Aligning Business and IT on your Digital Business Strategy www.sap-digital-business- services.com/
  • 40. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 39Customer Making Digital Transformation Possible (Video)
  • 41. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 40Customer Where to Find More Information • SAP Services Hub: www.sapserviceshub.com/h/ • SAP Services on SAP Community Network (SCN): scn.sap.com/community/services • SAP Digitalist: digitalistmag.com • SAP Digital Business Services on sap.com: www.sap-digital-business-services.com/
  • 42. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 41Customer 7 Key Points to Take Home  Digital Transformation and Innovation are the foundation for the future – starting NOW  You must think differently and address a new scale of users, devices, applications, and data & content in a whole new way than you are used to  Look to SAP and customers and partners for leadership examples and attend key events such as SAPinsider, SAPPHIRE NOW/ASUG, and SAP TechED to learn and experience more  Address the requirement for business outcomes in your projects and make a solid business case for innovation  Live next-generation innovative solutions: embrace and experience big data & analytics and grow team collaboration with cloud-based tools & solutions  Subscribe to and read key sources of Innovations and Thought Leadership such as the SAP Digitalist and SAPinsider magazine and on-line  It’s a great time in the industry and our careers to work with SAP solutions!
  • 43. © 2016 SAP SE or an SAP affiliate company. All rights reserved. Thank You! Fred Isbell Senior Director, Head of Thought Leadership and BMO SAP Digital Business Services Marketing fred.isbell@sap.com www.sap.com/services Twitter: Fmisbell Facebook: Fred M Isbell Linked In: www.linkedin.com/pub/fred- isbell/0/827/903Edit
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