Delivering Real-Time Business Value for High Tech

Delivering Real-Time Business Value
for High Tech
SAP Business Suite Powered by SAP HANA
July 2013 Public

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public
The real-time opportunity
Shorter product lifecycles and increasingly
demanding customers require high-tech companies
to continuously innovate ways to align business
operations with customer needs.
 Create new and innovative products that excite customers
 Respond rapidly to evolving trends
 Develop flexible, efficient, and cost-effective business
processes

Becoming an innovation driven enterprise
Align business operations with customer needs
Bring enticing and
relevant products to
market rapidly
• Predict trends and evolving customer needs
• Co-innovate with customers, partners, and suppliers
• Speed global rollout of products
Drive profitable
growth with flexible
sales and revenue
models
• Develop customer intimacy in marketing, sales, and
service
• Improve agility and speed in campaigns and
promotions
• Simplify sales, usage, and payment across multiple
channels (retail, Web, mobile)
Respond to market
dynamics in real
time
• Control complex multilevel supply chains
• Optimize out-sourcing, in-sourcing, and near-
sourcing
• Personalize any product, service, and delivery
model

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

Industry value map for high tech
Enabling the innovation-driven enterprise
Product Innovation and
Sourcing
Project Portfolio and
Project Management
Product Development and
Compliance
Strategic Sourcing
Customer Service and
Field Repair
Multi Channel Support and
Field Service
Professional Services
Engagement and Delivery
Service Parts Management
Multichannel Sales and
Marketing
Segmentation and Campaign
Management
Partner and Channel
Management
Sales Pipeline and Order
Management
Responsive Manufacturing
and Fulfillment
Production Scheduling and
Efficient Manufacturing
Customer Fulfillment
and Logistics
Demand-Driven Supply
Chain
Demand Sensing and
Response Management
Integrated Sales and
Supply Chain Planning
Collaborative Supply
Management
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
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
Adaptive Pricing and
Usage-Based Billing
Technology
Solutions
Analytics Consumer ExperienceData Management Enterprise Mobility
SAP HANA Platform
Application Development
and Integration

Product Innovation and
Sourcing
Project Portfolio and
Project Management
Product Development and
Compliance
Strategic Sourcing
Customer Service and
Field Repair
Multi Channel Support and
Field Service
Professional Services
Engagement and Delivery
Service Parts Management
Multichannel Sales and
Marketing
Segmentation and Campaign
Management
Partner and Channel
Management
Sales Pipeline and Order
Management
Responsive Manufacturing
and Fulfillment
Production Scheduling and
Efficient Manufacturing
Customer Fulfillment
and Logistics
Demand-Driven Supply
Chain
Demand Sensing and
Response Management
Integrated Sales and
Supply Chain Planning
Collaborative Supply
Management
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
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
Adaptive Pricing and
Usage-Based Billing
Technology
Solutions
Analytics Consumer ExperienceData Management Enterprise Mobility
SAP HANA Platform
Application Development
and Integration
Industry value map for high tech
Real-time value for key end-to-end processes
Highest real-time
business value for
high tech
1
3
2
4

Today
With SAP Business Suite on
SAP HANA
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Production scheduling and efficient manufacturing
Business value for high-speed material planning
 Decisions often based on periodic
material requirements planning
(MRP) runs and outdated information
 Inability to replan quickly if conditions
change due to long run times
 No holistic production planning
across all relevant production sites
 50% reduction in MRP run time with
high-speed reads
 Faster reaction to demand changes
 Faster propagation of demand
information through the supply chain
 Simulation of different what-if
scenarios in real time
 Increased use of stored procedures
to accelerate calculations such as
stock requirements list and where-
used lists
 Better synchronization of demand
and supply for global cross-plant
planning (and reduction of bullwhip
effect)
 Instant update on supply network
collaboration with latest demand
information
Reduce
out-of-stocks by
4%
Decrease
Limit
inventory and safety
stocks by
3%
bullwhip effect

Today
SAP HANA
Integrated sales and supply chain planning
Business value for supply chain monitoring
 Lack of near real-time information
 No ad hoc operational reporting
 Time-consuming data loads in
traditional reporting tools
 Reporting, queries, dashboards that
have to be created by each customer
 Inability to run sub-daily planning
jobs and analyze the results because of
the long data preparation times
 Inability to respond fast to ad hoc
customer queries, which may
result in lost sales
 Decision support based on near real-
time information
 Out-of-the-box analytical reporting
with streamlined data load
 Predefined dashboards for different
use cases (analytical workflows)
 Advanced data retrieval and
computing functionalities of SAP
HANA optimize the reporting of
supply chain planning data
Reduce
supply chain costs
by
3%
Optimize
Increase
inventory levels by
7%
customer service
level by
4%

Today
SAP HANA
Sales pipeline and order management
Business value for sales
 Difficult to distinguish profitable
customers within the customer pool
 Inability to identify gaps in the sales
pipeline leading to missed targets
 Need to extract actionable information
from the enterprise-wide Big Data on
customers to maximize the chance of
a sale
 Minimal insight into the buying
preferences of customers within the
social data context
 Quick identification of profitable
customers with account intelligence
analytics
 Faster transaction search capabilities
 Complete transparency into the sales
pipeline based on real-time
information with unlimited drill-down
functionalities
 Optimization of sales territories by
simulating large volumes of territory
data for adequate coverage
 Real-time analysis of Big Data to
better understand buying patterns
 Real-time access and assembly of all
data, including social and sales data
Increase
profitability by
2%
Decrease
Improve
cost of sales through
balanced territories by
4%
offer win rate

Today
SAP HANA
Product portfolio and project management
Business value for accelerated product development
 Time-consuming analysis and
progress monitoring of complex and
long-lasting projects
 Poor resource productivity and project
profitability
 Inability to monitor all aspects of a
project due to high volume of data and
detached analytics
 Inability to monitor project progress
sufficiently and in a holistic manner to
support decision processes
 Deviations in costs, time, resources, or
quality detected too late in the process
to make decisions
 Decisions to mitigate risks and
opportunity costs taken too late
 Improved run time of project
monitoring reports
 Combined analysis of financials and
logistics data
 Real-time access to large volumes of
data
 On-the-fly analysis, calculation, and
decision making
 Early insight into deviations and
risks, enabling timely corrective
measures
Improve
time to market for
new products
3%
Reduce
Reduce
cost impact of
engineering changes
4%
project failure

Customer cases
Japanese
technology firm
 SAP HANA software and SAP Business
Suite on SAP HANA
 Automated reporting
 Inventory optimization
 Predictive analytics
 Inventory visibility
European
technology firm
 SAP Business Suite on SAP HANA
 Real-time inventory
 Real-time material planning
 Marketing and sales
 Fast financial close
Leading U.S.
technology firm
 SAP HANA platform and SAP Business
Suite on SAP HANA
 Variable margin analysis
 Customer service excellence
 Opportunity order analysis
 Predictive analytics
 Supplier network traceability
 Predictive scoring
$25 million
Benefit over
five years
Annual
benefit
€85 million
Five-year net
value
$152 million

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 a starting point, we recommend a performance
and usage analysis of your current software
system.

© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Thank you
Contact information:
Dirk Wenzel
Senior Director, Global High Tech Solution Marketing
3010 Hillview Avenue, Bldg. 3
Palo Alto, CA 94304
dirk.wenzel@sap.com

© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Appendix
with detailed customer cases

Customer case: Japanese technology firm
Summary validated scenarios
Feasibility
Businessvalue
Legend
LowHigh
Low High
Allocation
optimization
(NA)
SAP Business
Suite on
SAP HANA
SAP HANA
products
SAP HANA
platform
Predictive analytics
(US$108k)
Annual revenue: US$2 billion
Automated
reporting
(US$1,168k)
Inventory
optimization
(US$5,737k)
Inventory visibility
(US$672k)
1 Short term
SCM Inventory optimization: Reduce inventory
carrying costs and inventory obsolescence
Inventory visibility: Cut down the days in
inventory ‒ one-time benefit
Allocation optimization: Reduce cycle time;
improve alignment to market dynamics; lower
business risk; improve ability to adapt to future
business requirements ‒ for example, channel
inventory
2 Medium term
SCM: Automated reporting: Improve productivity and
supply chain planning
Predictive analytics: Prevent revenue leakage
due to stock-outs
3 In evaluation
Other functions: To be discussed in future
discovery workshops
SAP HANA use cases mapped to
industry value map end-to-end solutions
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
Scenario
(business value)
Phase – deployment road map

Customer case: Japanese technology firm
SAP HANA platform
Results over five years
Surplus US$22 million
ROI 232%
Pay-back period 21 months
(4.468)
(627)
6.490 6.490
1.276
(6.000)
(4.000)
(2.000)
-
2.000
4.000
6.000
8.000
10.000
2013 Phase 1 Phase 2
Costs SoH Applications Platform
Anything built on the platform that is customer specific ‒ new business processes and business models
SAP NetWeaver BW on SAP HANA, HPAs, apps powered by SAP HANA – mapped to industry value map end-to-end solutions
$
Currently available functionalities (SP0, 1, 2); 23 scenarios mapped to IVM E2E solutions; and planned functionalities (All of
the end-to-end solutions on the industry value map are in scope.)
Actual SAP customer
business case Annual benefits, SAP HANA
platform
Annual benefits, SAP HANA
products: US$1.3 million
Annual benefits, SAP Business
Suite on SAP HANA: US$6.5 million
Estimated deployment costs
Total transition cost: US$5 million
SAP HANA platform
SAP HANA products
SAP Business Suite on
SAP HANA
More information: Koert Breebaart
SoH = SAP Business Suite on SAP HANA

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.
An electronics manufacturer ‒ automated reporting
High tech
Business context and goals
 This manufacturer can improve the productivity of the supply chain planning team by automating
reports and decision-making data needs based on real time SKU level reporting. This reduces
manual consolidation of spreadsheets.
Business challenges
 The planning team is currently looking at sales data and stock inventory that is a few days old
because of the manual steps required to create the reports. This negatively impacts the amount
of work and the quality of decisions.
Process innovations
 Improved productivity of marketing forecasting.
Contribution of SAP HANA
 SAP NetWeaver Business Warehouse (SAP NetWeaver BW) on SAP HANA provides instant
and automated reports to the planning team.
Value drivers/KPIs
 Improve productivity supply chain planning
Innovation scope
SAP HANA products (HPAs, apps)
End-to-end (E2E) solution
Integrated sales and supply chain
planning
Value potential 3
Feasibility 4
Low High
1 5
Low High
1 5

An electronics manufacturer ‒ inventory visibility
High tech
 Due to limitations on SKU level reporting on inventory, the company’s allocation of stocks is
suboptimal and it keeps higher safety stocks than necessary. Improved supply chain planning
based on predictive modeling on SKU level will help.
Business challenges
 Due to slow queries and data accuracy issues the planning team is not able to perform analysis
and predictive modeling on SKU level.
Process innovations
 Near real-time visibility on inventory in all channels
 SAP NetWeaver BW on SAP HANA provides SKU level reports to improve management of
inventories.
Value drivers/KPIs
 Cut down the days in inventory (one-time benefit).
Innovation scope
E2E solution
planning
Value potential 4
Feasibility 3
Low High
1 5
Low High
1 5

An electronics manufacturer ‒ allocation optimization
High tech
 Decisions about allocation of products are not based on recent developments but rather on
historical rules and are therefore suboptimal.
Business challenges
 Allocation rules are not dynamically linked to real-time inventory and sales data.
Process innovations
 Decision making on product allocation can be based on facts.
 SAP NetWeaver BW on SAP HANA provides SKU level reports to improve product allocation.
Value drivers/KPIs
 Reduce cycle time, Improve alignment to market dynamics, lower business risk, improve ability to
adapt to future business requirements (for example, channel inventory).
Innovation scope
E2E solution
planning
Value potential 4
Feasibility 4
Low High
1 5
Low High
1 5

An electronics manufacturer ‒ predictive analytics
High tech
Innovation scope
E2E solution
planning
Value potential 2
Feasibility 4
Low High
1 5
Low High
1 5
 This electronics manufacturer can increase revenues by reducing its out-of stock products in the
stores. Improved supply chain planning based on predictive modeling will lead to improved
allocation of goods and a better alignment with the manufacturers.
Business challenges
 Current data warehouse with historic sales data and stock inventory is updated by offline manual
batch processes and prevents the planning team from performing real-time analysis.
Process innovations
 Near real-time simulation of marketing forecasting.
 SAP HANA boosts the performance of SAP NetWeaver BW, helping to overcome many of the
limitations on forecasting.
Value drivers/KPIs
 Reduce revenue leakage due to stock-outs (% of revenue).

An electronics manufacturer ‒ inventory optimization
High tech
Innovation scope
E2E solution
planning
Value potential 5
Feasibility 3
Low High
1 5
Low High
1 5
 Due to limitations on SKU level reporting on inventory, the company’s allocation of products is
suboptimal and it keeps higher safety stocks then necessary. Improved supply chain planning
based on predictive modeling on SKU level will help.
Business challenges
 Due to slow queries and data accuracy issues, the planning team is not able to perform analysis
and predictive modeling on SKU level.
Process innovations
 Near real-time visibility on inventory in all channels.
 SAP NetWeaver BW on SAP HANA provides SKU level reports to improve management of
inventories.
Value drivers/KPIs
Reduce inventory carrying costs; reduce inventory obsolescence costs.

Customer case: European technology firm
Feasibility
Businessvalue
Legend
LowHigh
Low High
Real-time material
planning
(€8 million)
SAP Business
Suite on SAP
HANA
SAP HANA
products
SAP HANA
platform
Annual revenue: €5.9 billion
Real-time inventory
(€12 million)
Fast financial close
(€5.7 million)
Marketing and
sales
(€55 million)
1 Short term
CRM Marketing and sales Average annual fund
overspend (in %); trade spending as a % of
revenue; % of qualified leads closed annually; %
of sales transactions where cross-sell/up-sell is
offered
SCM Real-time inventory Inventory carrying cost (%
of revenue); overall supply chain planning cost
(% of revenue); revenue loss due to stock-outs
(in %)
2 Medium term
SCM: Real-time material planning % production
shutdowns due to missing parts; % purchased
goods ordered late
FIN Fast financial close % effort on working with
audit related data (finance); audit cost as a % of
revenue; days to close annual books (in days)
3 In evaluation
Other functions – to be discussed in future
discovery workshops
Scenario
(business value)
industry value map end-to-end solutions Phase – deployment road map

1 Short term
Finance: Fast financial close
(variable margin analysis)
Sales: Insight-driven sales
(opportunity order analysis)
Marketing: Insight-driven marketing
(Predictive scoring ‒ real-time segmentation,
campaign optimization, and affinity analysis)
Service: Insight-driven service
(Customer service excellence ‒ mine ASUP
data proactively)
Sourcing: Supplier network traceability
(strategic purchase optimization)
3 In evaluation
Other functions – to be discussed in future
discovery workshops
Customer case: leading U.S. technology firm
Feasibility
BusinessvalueLowHigh
Low High
Variable margin
analysis
(US$45 million)
Predictive scoring
(US$15 million)
Annual revenue: US$6.2 billion
Opportunity order
analysis
(US$15 million)
Customer service
excellence
(US$37 million)
Supplier network
traceability
(US$13 million)
Legend
SAP Business
Suite on SAP
HANA
SAP HANA
products
SAP HANA
platform
Predictive
analytics
(US$108,000)
Scenario
(business value)
industry value map end-to-end solutions Phase – deployment road map

Delivering Real-Time Business Value for High Tech

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