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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 0Internal
Fred Isbell
Senior Director
SAP Digital Business...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 1Customer
Agenda
 Market Context
 Innovation Adoption 10...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Customer
Market Context:
Making a Business Case for the C...
Innovation 101 & Digital
Transformation
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Customer
Business Context
The Pace of Change is only Acce...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Customer
Audience Quiz
Who Pioneered These Innovations?
F...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Customer
Audience Quiz
Who Pioneered These Innovations?
F...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Customer
Innovation Adoption 101
The Model & Segmentation...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Customer
Innovation Adoption 101
Time to Innovation Adopt...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Customer
The Hype Cycle: riding the “roller coaster” of i...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Customer
Why Do We Need to Respond to New Technology and...
© 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
Ter...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 16Customer
IDC Perspective
Adoption of 3rd Platform Techno...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 17Customer
SAP and the Transition to the Third Platform
In...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 18Customer
Gartner Perspective
The Nexus of Forces
• “The ...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 19Customer
“More than 60% of CEOs expect 15-50% of their e...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 20Customer
Innovation Technologies: Cloud Computing
 Soft...
© 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 Co...
© 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 ...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 25Customer
Innovation Technologies
Social Media and Digita...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 26Customer
Opportunities & Project Considerations
Social M...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 27Customer
SAP Customer Success
The Digitalist
 SAP platf...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 28Customer
Innovation Technologies
Big Data and Analytics
...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 29Customer
Opportunities & Project Considerations
Big Data...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 30Customer
SAP Customer Success
NHL.com
 Real-time Statis...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 31Customer
The Internet of Things (IoT)
 Massive amounts ...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 32Customer
Smart metering for a North American
leader in e...
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 th...
Wrap-up
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 36Customer
Navigate Digital Transformation with Leading & ...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 37Customer
Implement Solutions Quickly, Affordably, and Pr...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 38Customer
Run Live. Run Simple.
with SAP Digital Business...
© 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 H...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 41Customer
7 Key Points to Take Home
 Digital Transformat...
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Thank You!
Fred Isbell
Senior Director, Head of Thought Le...
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 43Customer
© 2016 SAP SE or an SAP affiliate company.
All ...
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Fred Isbell SAPinsider Projects 2016 Session: Making a Business Case for Cloud and Digital Transformation

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Building a business case for cloud and digital transformation: Issues, considerations, and best practices
Cloud computing is a disruptive technology and a key innovation for digital transformation. Attend this session to learn how to address innovations in your SAP projects and kick-start new initiatives that embrace cloud, big data and analytics, and social/digital solutions. You will:
• Review the “next wave” of innovation and business solutions, impacting both IT and Line of Business (LoB)
• Get key insights from industry influencers and experts to assist in building a business case
• Explore case studies from SAP projects, including key results and business impact and best practices to managing innovative project

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

  1. 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. 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. 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. 4. Innovation 101 & Digital Transformation
  5. 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. 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. 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. 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. 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. 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. 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. 12. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Customer Digital Transformation – A Definition
  13. 13. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Customer Digital Transformation The common issues we hear
  14. 14. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Customer SAP Digital Business Framework
  15. 15. Navigating Innovation Technologies
  16. 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. 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. 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. 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. 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. 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. 22. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 21Customer Cloud Deployment Models
  23. 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. 24. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 23Customer SAP Customer Success: McLaren
  25. 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. 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. 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. 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. 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. 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. 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. 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. 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. 34. Making a Business Case for Innovation
  35. 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
  36. 36. Wrap-up
  37. 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. 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. 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. 40. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 39Customer Making Digital Transformation Possible (Video)
  41. 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. 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. 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
  44. 44. © 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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