Learn how to effectively address aftermarket opportunities in the manufacturing industry. This session will discuss how SAP Hybris solutions can transform how you offer and deliver parts, components, accessories, and services in the aftermarket space for the best value. Learn more about SAP Hybris here: https://hybris.com/en/solutions/industries/high-tech

1. PUBLIC
David Koenig, SAP
October17,2017
Engage the Aftermarket

2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Case for Aftermarket
§ By the Numbers
§ The Call to Action
§ The Winning Strategy
§ Seizing the Opportunity
Agenda

3. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Source: Aberdeen Group
$1 trillion
The value of the
U.S. aftermarket

4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Service, consumables, and parts are all aftermarket
of industrial equipment
and technology
companies experienced
growth in service
revenues.
Source: Technology Services Industry Association
(TSIA), 2015
B2B buyers would be
willing to pay slightly
more to buy directly from
the brand that
manufactures the
product.
Source: Forrester/Internet Retailer Q4 2017
Global B2B Buy-Side Survey
B2B buyers prefer to buy
directly from the brand
that manufactures the
product vs. a distributor
that sells it.
Source: Forrester/Internet Retailer Q4 2017
Global B2B Buy-Side Survey
78% 43% 27%

5. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Looking at the total lifetime costs of equipment
With 70 to 90% of
the total lifetime cost
of heavy equipment
to be found in
maintenance and
repair, services offer
not only high profit
margins, but also
predictable annual
revenues that can
protect against
market volatility.
IDC Whitepaper: From Products to Services”
“

6. You already have the
customer. How do you
maximize that relationship?

7. Do your customers feel
strongly about your brand?

8. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Why are your customers engaging with you?
Reputation Support
Experience
Warranty
Salespeople
Convenience Trust
Relationship
Service
Speed
InformationBrand
Availability

9. Is that enough?

10. 10PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
The world has changed …
SAP Hybris Commerce
SAP Hybris Cloud for Customer
SAP Hybris Marketing
SAP Hybris Revenue Cloud
Vehicle insights, IoT cloud
Vehicle management system
Dealer business management
SAP S/4HANA
Loyalty management
Vehicles network

11. Aftermarket requires more than
a point solution
Aftermarket requires best-of-
breed players in:
§ Commerce
§ Sales
§ Service
§ Marketing
§ Billing
The winning strategy:
“moneyball”

12. 12PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital core
Experiencemanagement
Data management/analytics
Commerce ServiceMarketing Sales Revenue
Shared core services
Augmenting SAP Hybris solutions with predictiveand machine learning scenarios
Extensions
SAP Cloud Platform
Machine learning services based on SAP Leonardo Machine Learning
and SAP HANA automated predictive library (APL)
Process orchestration and integration
SAP S/4HANA
In back office
SAP Hybris
solutions for the front
office
Simplifies and
differentiates
customerprocesses
Simplifies and optimizes
core processes

13. Is your product the best?
Are your services and
sales team extraordinary?

14. 14PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Benefits
§ Improve closing rate for
service contract renewals
§ Grow spare-parts business
§ Achieve better response
rates for service requests
Solution – SAP Hybris
Cloud for Customer, with:
§ SAP Hybris Cloud for Sales
§ SAP Hybris Cloud for
Service
§ SAP ERP
Vestas: Growing aftermarket through service

15. 15PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Benefits
§ New users attracted to online store,
helping to boostsales figures
§ Average visits per week per
customerhas increased
§ Existing customers buying new
products thanks to visibility of the
full range
§ System integration that has
facilitated customerand product
data management, saving time and
effort
17% Increase in visits
12% Increase in sales
8% Increase in AOV
(average order value)
Chamberlain – LiftMaster: Self-service

16. 16PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Workingwith customers to drive:
§ New products
– Solving customer problems not addressed in
the product catalog
§ Extended channels
– Easing the reorder by being at the point of
need
– Automating reordering
§ New services
– Subscription models
– IoT-driven innovation
§ Channel shift
– Moving sales to the lowest cost-to-serve
channels
Grainger – Innovating in MRO

17. 17PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital core
Experiencemanagement
Data management/analytics
Commerce ServiceMarketing Sales Revenue
Shared core services
Augmenting SAP Hybris solutions with predictiveand machine learning scenarios
Extensions
SAP Cloud Platform
Machine learning services based on SAP Leonardo Machine Learning
and SAP HANA automated predictive library (APL)
Process orchestration and integration
SAP S/4HANA
in back office
SAP Hybris
solutions for the front
office
Simplifies and
differentiates
customerprocesses
Simplifies and optimizes
core processes

18. 18PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Manufacturers ready for success
Understand customer needs
§ Agility
§ Platforms
§ Breaking down silos
Product as a service
§ New revenue streams
§ Subscriptions
§ “Share of wrench”
Lot size of 1
§ Configure, price, quote (CPQ)
§ Quote to order
§ Installed base
Manufacturers must be prepared to open up new revenue streams and exceed customer expectations
to remain relevant in an increasingly competitive field.

19. Thank you.