Customer Engagement

1© 2016 SAP SE or an SAP affiliate company. All rights reserved.
DRIVING VALUE IN
A DIGITAL ECONOMY
A COLLABORATIVE APPROACH TO
INNOVATION AND VALUE CREATION

2
Dear Customers,
In a digital economy where everything is connected from homes to cars to farms, traditional
business models are not as relevant. Industry boundaries are blurring. The way companies
deliver products and services to customers and create value for their stakeholders is changing at
a rapid pace.
To deliver a step change in customer experience and productivity, companies need to do things
differently. This requires reimagining business models, business processes, and how people
work.
At SAP, we feel it is our duty to help you on your journey to digital transformation. Eight years
ago, we embarked on a journey of our own to build a true business digital platform for the 21st
century. The result of this is a modern digital platform with new capabilities such as real-time,
personalization, collaboration, predictive and machine learning, and deployment choice (cloud,
on premise, hybrid).
We are excited to partner with you on your own transformation journey, harnessing the power of
our full solution and the new engagement model, which uses design thinking and provides a
clear framework for innovation without disruption.
This document articulates how SAP can help you in your digital transformation journey. I
welcome the opportunity to work with each one of you and be a key partner in enabling the
future of your company and helping you Run Simple and Run Live.
Best Regards,
Rob
Rob Enslin
President Global Customer
Operations & Executive
Board Member
SAP SE

TABLE OF CONTENTS
The Current Reality of the Digital Economy 4
The Digital Business Framework 5
Customer Engagement Methodology 6
Phase 1: Executive Alignment 8
Phase 2: Value Discovery 9
Phase 3: Validation and Execution Readiness 10
Phase 4: Value Delivery 11
SAP at Your Service 12

The “digital storm” affects all industries, but its impact is
not uniform across the spectrum. However, every
industry will enter the eye of the storm at some point. It’s
just a matter of time. Retail, financial services, telco, and
media have already been affected. In the next two to five
years, the Internet of Things (IoT) will impact asset-
intensive and manufacturing industries. These industries
represent over 60% of the world’s GDP.
Industry lines are blurring and disintermediation is
reshaping entire value chains at an alarming scale.
Companies are moving beyond selling products and
services to selling outcomes.
Companies require a complete refresh of their
technology platform to make it more flexible, adaptive,
and agile. SAP has a comprehensive solution portfolio
for 25 industries and 12 line-of-business solutions
powered by the most innovative business platform, SAP
HANA. It is an open platform that can adapt to
companies’ future business needs.
SAP is uniquely positioned to enable any company in
any industry to build digital capabilities to adapt and
thrive in the new reality.
MILLS AND MINING • O&G
CHEMICALS • EC&O
UTILITIES
LIFE SCIENCES / HEALTHCARE
SERVICES / TRANSPORTATION
CONSUMER GOODS / AFS
PUBLIC SECTOR • AUTO • IM&C
A&D • HIGHER EDUCATION
BANKING / INSURANCE
RETAIL / WHOLESALE
TELCO • MEDIA
HIGH TECH
SPORTS AND
ENTERTAINMENT
DEFENSE AND SECURITY
HURRICANESEVERE STORMHIGH WINDS
THE CURRENT REALITY OF THE DIGITAL ECONOMY
THE DIGITAL ECONOMY OFFERS INFINITE OPPORTUNITIES TO FIRST MOVERS
Today, we live in a data-driven world. The data comes in all formats:
structured, unstructured, geospatial, video, voice, etc. Volumes of data are
growing at a rate of 40% per year and will increase 50 times by 2020.*
This explosion of data and advent of new digital technologies will only
accelerate the disruption of existing models of business and government.
In a digital economy, companies that can harness the power of data and
digital technologies will fuel their future growth. Digital transformation is no
longer something that's nice to have - it's a necessity. The time to act is now.
* World Economic Forum, January 2016 : What is the future of the internet?

THE DIGITAL BUSINESS FRAMEWORK
DESIGNED TO ENABLE COMPANIES TO ADOPT AND THRIVE IN A DIGITAL ECONOMY
SAP’S END-TO-END DIGITAL BUSINESS FRAMEW ORK
With a strong focus on value creation and shortening cycle time to value,
SAP has spent over $35 billion in acquisitions and innovation to help
customers compete in a digital economy with minimum disruption. This
required a transition to the cloud, reinventing in-memory computing and
accelerating business innovation.
A digital platform suitable for the 21st century needs to go beyond
doing things better to also doing things differently. It’s all about
step change in productivity and revenue growth. To deliver on this
expectation, our platform focuses on the following criteria:
• Personalized and consistent end-to-end customer experience
• Running live, with immediate insight in the moment (digital
boardroom of the future)
• Business collaboration – integration not just between
departments, but bringing the world to your doorstep
• Engaging user experience with near zero response times –
intelligence beyond automation to predictive suggestion
• Step change in productivity gains – reduce business
processes cycle time, automate tasks with learning machines,
mobile, etc.
• Agility to adjust business models on the fly (org structures,
M&A integration, entry to new markets, ..)
• Predictive capabilities to optimize asset utilization – integration
of the Internet of Things with business processes
• Landscape simplification and TCO reduction
• Broad functionality scope available today (finance,
procurement, manufacturing, asset management, sales and
distribution, supply chain, services, digital boardroom) with
more functionality coming soon

COLLABORATIVE APPROACH
INNOVATION FOCUS
TAILORED TO YOUR NEEDS
VALUE DRIVEN
In addition to building the most comprehensive technology platform for digital
transformation, SAP has developed a new, immersive, and engaging value
assessment and delivery methodology. This approach lays the foundation for an
outcome-based partnership and a path to digital innovation.
PARTNERSHIP FOR SUCCESS
OUTCOME AND VALUE FOCUSED

CUSTOMER ENGAGEMENT METHODOLOGY
A COLLABORATIVE APPROACH TO INNOVATION WITH MINIMUM DISRUPTION
For innovation today, a new level of collaboration is required. As a result, we have developed a
framework that will be a continuous and holistic partnership model designed to drive true collaboration
and engagement.
The following four phases leverage SAP’s knowledge, technology, and innovation power to collaboratively develop
a digital road map based on your corporate strategy.
1. EXECUTIVE ALIGNMENT | Sets the direction and expected outcome of the engagement
2. VALUE DISCOVERY | Identifies areas of opportunities and develops a value proposition, solution road map, and ROI
3. VALIDATION & EXECUTION READINESS | Finalizes recommendation and plans execution
4. VALUE DELIVERY | Drives the creation of value – on time and on budget

PHASE 1: EXECUTIVE ALIGNMENT
STRATEGY
SCOPE
CONSTRAINTS
RESOURCES
TIMELINE
EXPECTATIONS
GOVERNANCE
Executive alignment helps to achieve a high-level understanding of
strategic imperatives and agree on objectives, timelines, and the
overall partnership governance model
KEY PARTICIPANTS
• Executive sponsors
• Relevant business leaders from both parties
APPROACH
• High-level dialog around current and future business model needs
• Understanding customer business priorities and challenges
• Sharing new SAP digital innovation capabilities and references
• Aligning on key opportunities to drive value and third-party involvement (if needed)
• Agreement on constraints, limitations, and governance for the partnership
OUTCOME
• High-level prioritization of scope and key strategic initiatives
• Nomination of program leads on both sides
• Allocation of resources and access to business data
• Agreement on timeline

PHASE 2: VALUE DISCOVERY
Based on scope, two different approaches are possible. A business process
assessment requires focus on the next, best practice, KPIs, and solution road map.
Digital innovation requires design thinking and proofs of concept (POC).
• Business unit heads
• Business users
• Domain experts from SAP
• Enterprise architects
KEY PARTICIPANTS
APPROACH
OUTCOME
BUSINESS PROCESS
OPTIMIZATION
DIGITAL
INNOVATION
• Business unit heads, business users
• Domain experts from SAP
• Design thinking facilitator
• SAP Co-innovation Lab experts
• Data scientists
• Ideation with design thinking
• Prioritization of innovation scope
• Evaluate feasibility, viability, and desirability
• Develop proof of concept with company data
• Digital solution road map
• Workshops to understand business
pain points
• Benchmarking and best practices
assessment
• Solution road map and technical
architecture
• Identification of value drivers and
KPIs for business case
• Case for change
• Proof of concept (demo)
• Executive-level presentation
with team recommendation
• Demos to showcase relevant
solutions
Solution road map
Enterprise architecture
Benchmarking

Review and validation of team recommendation with customer key stakeholders is a
critical step in getting project approved. SAP and customer project teams work together
to deliver a board-ready presentation.
KEY PARTICIPANTS
• Executive sponsors
• Business unit head impacted by decision
• Program managers and SAP customer relationship manager
APPROACH
• Validate and refine team recommendation with key stakeholders
• Support customer executives to deliver board-ready presentation
• Finalize partnership and commercial discussion
• Agree on ongoing governance model
OUTCOME
• Agreement on the right option and business value
• Executed partnership and commercial agreement
• Governance model to ensure successful customer outcome
INNOVATION: Insightful
whitepaper and a video/POC
to help customers reimagine
the future of their business
through digital
transformation
BUSINESS TRANSFORMATION
POV: Comprehensive document
to reflect our deep
understanding of the business
requirement, recommended
solution, road map, and ROI.
PHASE 3: VALIDATION & EXECUTION READINESS

Enable our customers to Run Live in a digital world through innovation road maps,
transformation programs, and value realization
KEY PARTICIPANTS
• Executive sponsors (steering committee)
• Program managers, SAP digital delivery services and partners
• Business and IT users
APPROACH
• Collaboration with customers on value-based innovation road map
• Leveraging SAP industry-specific model companies, reference architectures, and
rapid prototyping
• Safeguarding deployment through innovation and mission control centers
• Accelerated deployment through cloud offering (as needed)
OUTCOME
• Flawless execution of the digital business strategic road map
• Optimized delivery based on expected value
• Transition to Run Simple mode
• Monitoring value delivery
PHASE 4: VALUE DELIVERY
ADVISE AND
IMPLEMENT
Blueprint
Change management
Design
Testing
Training
Premium engagement
Value partnership
Mission control centers
SAP MaxAttention
SAP ActiveEmbedded
Cloud hosting
RUN AND OPTIMIZE
CLOUD
DELIVERY

• Design thinking experts around
the globe
• Strong data science practice
• Hasso Plattner Institute, SAP
Innovation Centers, and SAP
AppHaus to drive POCs
• Largest benchmarking database
with 18K customers
• 60+ business process best
practices surveys
• 25 digital industry readiness
surveys
• Innovation case studies by
industry
• Solution for 25 industries and
12 LoBs
• End-to-end solutions and
services
• +13k SAP partners worldwide
• ~3k SAP University Alliances
partners in 90 countries
DIGITAL INSIGHTS
AND KNOW-HOW
21ST CENTURY APPROACH
TO INNOVATION
DEEP INDUSTRY
AND LOB EXPERTISE
SAP DIGITAL ASSETS AT YOUR SERVICE
SAP IS WELL-POSITIONED TO TURN DIGITAL VISION INTO REALITY

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