DR. CARSTEN POLENZ | VP Digital Supply Chain Management| INTELLGENT ENTERPRISE GROUP| SAP SE Rīga, 2019.gada 15.februāris Forums "DIG-IN" Video: http://straume.lmt.lv/lv/konferences/konferences/carsten-polenz/1037735

1. 1
INDUSTRIE 4.0 AND GERMAN ACTIVITIES – Connected
Manufacturing from the SAP Perspecitve
DR.CARSTEN POLENZ | VP Digital SupplyChain Management| INTELLGENT ENTERPRISEGROUP| SAP SE
15.02.2019

2. Plattform Industrie 4.0
Diverse perspectives combined under one umbrella
3

3. Path from traditional manufacturing to data-driven business ecosystems
Business Model
Business Driver
IoT skills
Integration and
technology
Standards
Product and after-sales
services
Process optimization
Analytics, machine learning,
optimization
Horizontal integration (from
design to delivery)
Semantic standards
Product-as-a-service and
value-added services
Services growth
Services management
(portfolio, product mgmt.)
Services platform, SLA
management, services billing
Interoperability of services
SMART SERVICES
Data-driven digital
business
Ecosystem expansion
Ecosystem business
development
Open data platform,
business network
Cross-industry standards
INNOVATION BUSINESSOPTIMIZED PRODUCTION
Product and support
services
Product sales
Embedded systems,
augmented reality
Vertical integration (OT-IT),
machine connectivity
Connectivity (e.g. OPC-UA)
Connect & act live
Optimize & deliver
efficiency
Expand & grow
revenue
Innovate & grow
ecosystem
5

4. AI in Industrie 4.0
AI is going to be the driving force for autonomous systems in
Industry
7
Levels of Autonomy
describe how today &
in the future Men and
Machines will decide.
Higher Levels of
Autonomy require
Intelligence
A portfolio of
technologies for
Artificial
Intelligence is the
prerequisite for
intelligent systems

5. 8
Catalog of
Technologies and
Topics Industrie 4.0
Transparency for
Support Activities
Network of federal
activities
Top Best Practice
Examples (Case Studies)
Consolidate Show
Cases
Roadshow: Format for
Industrie 4.0 together
with the DIHK and many
IHK‘s.
Transfer to the “Mittelstand“
Projects within the „Transfer-Network“

6. The Working Groups
Six topic priorities
Legal Framework
Chair:
Dr. Hans-Jürgen Schlinkert,
ThyssenKrupp
Security of Networked
Systems
Chair:
Michael Jochem,
Robert Bosch GmbH
Work, Education and
Training
Chair:
Martin Kamp,
IG Metall
Reference Architectures,
Standards and Norms
Chair:
Kai Garrels,
ABB STOTZ-KONTAKT
GmbH
9
Technology and
Application Scenarios
Chair:
Johannes Kalhoff,
Phoenix Contact
Digital Business Models
for Industrie 4.0
Chair:
Prof. Dr. Svenja Falk,
accenture

7. 11CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Top Trends in Industrial Manufacturing Between Now and 2022
At least 10 out of the Top 11 Trends are Supposed to be Relevant for Wind Energy Companies
Top 11 Trends in IM&C by 2022:
1. Pay-per-Use
2. Smart Products - equipped with IoT,
edge intelligence, …
3. Increase service revenue ratio
4. IoT to increase new services
5. Aftermarket service for competitors'
products
6. Industry networks - operational efficiency
in e2e asset lifecycle
7. More software in products
8. Digital Twins to manage build and usage
9. Plug & Produce to increase
manufacturing flexibility
10. Virtual Reality & Augmented Reality in
daily operation
11. Machine Learning & big data in
manufacturing planning and scheduling
Blog on anticipated trends between now and 2022: https://blogs.sap.com/2017/09/13/anticipated-top-trends-in-industrial-manufacturing-by-2022/
Top Trends

8. 12CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Intelligent Technologies
Machine Learning | IoT | Analytics |
Big Data | Blockchain | Data Intelligence
Intelligent Technologies
Several innovative technologies have matured to practical use. These include:
 IoT makes business applications interact with the physical world.
 Big Data to make large data sets accessible for advanced analytics and intelligence.
 Machine learning and Artificial Intelligence automate repetitive processes and
learn from human exception handling and decision making.
 Advanced Analytics finds data patterns to support decisions and predict the future
 Blockchain distributes collaborative processes across the entire value network.
 Data Intelligence finds new value in data assets for new business models
Digital Platform
The digital platform is powered by SAP HANA and extends the intelligent end-to-end
processes and connects to data sources. It consists of:
 Cloud Platform that allows customers and partners extend their Intelligent Enterprise
Suite to run additional business processes.
 Data Management to handle and organize data, a key asset of the intelligent
enterprise.
Digital
Platform
Data
Management
Cloud
Platform
Intelligent Suite
The set of applications that provide the business capabilities which Industrial Machinery
& Components companies need to run their business. End-to-end business processes
span multiple applications, so processes and data must be integrated for automation,
seamless user experience, fast adoption, and ease of operations.
Intelligent
Suite
Customer
Experience
Manufacturing
& Supply Chain
Digital
Core
People
Engagement
Network & Spend
Management
SAP’s framework for the Intelligent Enterprise

9. 13CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
. . . enables Innovations across the entire value chain
R&D Sales & Marketing Supply Chain Manufacturing Aftermarket Service
Servitization &
new business
models
Serving the
“Segment of One”
Customer
centricity
Digital smart
products
Digital supply
chain & smart
factory
Collaborative Design
Before: Inside-Out approach
After: Integrated process
with customers and partners
Predictive service
Before: Reactive service
After: Preemptive fixing of
potential problems
Solution Configuration
Before: Static rules
After: Rules powered by
machine learning
Virtual Assets
Before: Siloed information
After: Holistic digital twin
Closed loop engineering
Before: Limited prod. insight
After: Full access to product
operations data
Int. Inventory planning
Before: 1st.come - 1st.serve
After: Automatic allocation
by business priority
Intelligent allocations
Before: 1st.come - 1st.serve
After: Automatic allocation
by business priority
Remote mfg monitoring
Before: delayed response
After: real-time response to
manufacturing issues
Additive parts mfg
Before: Long lead time
After: On demand printing of
required spare parts
Design for service
Before: Focus on product
After: Focus on lifetime
value generation
Smart parts replenishmt.
Before: Reactive
After: Predictive parts
provisioning
Service ticket intelli.
Before: Manual
After: Automatic ticket
qualification and allocation

10. 14CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
. . . as they evolve their Strategic Priorities
Rationalize current
variants to platform and
configuration model
Implement formal
requirements for
engineering and functional
models
Connect functional
models to customers via
configure, price, and
quote
 Completely customized solutions
 Solutions tailored to individual customer
needs
 Platforms and mass-customization
Incorporate software-
based features for
increased flexibility and
connectivity
Extend physical product
functionality with digital
only services
Introduce direct feedback
loop from product
enhancements based on
actual usage
 Products self aware and connected
 Flexible configuration during operation
 Increased value from software
Optimize supply chain
transparency and
enterprise connectivity
Increase machine-to-
machine connectivity and
collaboration
Enable true modular
production process
 Modular supply chain and manufacturing
 Direct connection to demand signals
 Automated shop floor – cobots, drones
Monitor condition of
assets remotely
Offer new digital services
with the IOT Platform
Pay for outcome services
based on assessed risk
and long-term value
 Services based on value and data
 Multi-brand services
 Products “as a service”
Serving the
“Segment of One”
Digital smart
products
Digital supply
chain and smart
factory
Servitization and
new business
models
Customer
centricity
Optimize Extend Transform
Create superior customer
experiences through tailor-made
solutions delivered at scale and
as a service
Move from disparate
channels to true
omnichannel interactions
Connect to products in
use by customers for
insight into performance
 Customer for life relationships
 Shared risk and reward
 Seamless omnichannel interactions
True 360°customer
collaboration from
demand to value

11. 15CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Intelligent Suite: Support of End 2 End Processes
Design
Product
Source
Parts
Manufacture
Parts
Assemble
Product
Deliver
Product
Operate
Product
Design 2 Operate
Lead 2 Cash
Leads Proposal Sales Order
Delivery
Order
Invoice
Account
Receivables
ETO
CTO
MTS
ETO
Service
Order
Invoice
Account
Receivables
Main Solutions
C/4 HANA
S/4 HANA
Intelligent Product Design
Engineering Control Center
ARIBA
Integrated Business Planning
Digital Manufacturing
Asset Intelligence Network

12. 16CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP’s 3 Tier Manufacturing Architecture
R&D Manufacturing Service
PEO
 Visual Mfg Planner
 Change Impact Analysis
 Change Record
 Master Data Mgmt and
Versioning
 Supervisor Application
PLC
L0-2
Process Control
Sensors & Actuators
Manufacturing Process
Asset Central
PdMS
ASPM
AINDMC
PCo PCo
S/4S/4
E-BOM
PEO
 Complex Assy
AS BUILT BOM
Abbreviations:
 DMC = Digital Manufacturing Cloud
 PLC = Product Lifecycle Costing
 IPD = Integrated Product Development
 PEO = Product Engineering & Operations
 ME = Manufacturing Execution
 MII = Manufacturing Intelligence and Insight
 DMC = Digital Manufacturing Cloud
 PCo = Plant Connectivity
 PdMS = Predictive Maintenace and Service
 ASPM = Asset Startegy & Performance Management
 AIN = Asset Intelligence Network
DMC
 Mfg.Execution
 Network
L3
Manufacturing
Operations
Management
L4
Enterprise
Business
Process
Connected
World
ISA 95
IPD
PLM
M-BOM , Routings, Work Instructions,
Inspection Criteria, 3D Visualizations
 Predictive Quality
 Data Stratification
 Root Cause Analysis
 Shop Floor Design
 Shop Floor Monitoring
ME/MII
 Mfg.Execution
S/4
Deployed in the cloud
Deployed on premise
Deployed on the edge
DMC

13. 17
Thank you
Dr. Carsten Polenz
Vice President – IoT Strategy & Industrie 4.0, Products & Innovation
SAP SE, Dietmar-Hopp-Allee 16
69190 Walldorf/Baden, Germany
c.polenz@sap.com
T +49 6227 7-46129
M +49 160 360 3354

14. Disclaimer
Die Informationen in dieser Präsentation sind vertraulich und urheberrechtlich geschützt und dürfen nicht ohne Genehmigung von SAP offengelegt
werden. Diese Präsentation unterliegt weder Ihrem Lizenzvertrag noch einer anderen Service- oder Subskriptionsvereinbarung mit SAP. SAP ist in
keiner Weise verpflichtet, in dieser Präsentation oder einem dazugehörigen Dokument dargestellte Geschäftsabläufe zu verfolgen oder hierin
wiedergegebene Funktionen zu entwickeln oder zu veröffentlichen.
Diese Präsentation oder jedes dazugehörige Dokument über die Strategie von SAP und mögliche zukünftige Entwicklungen, Ausrichtungen und
Funktionen von Produkten und/oder Plattformen kann von SAP jederzeit aus beliebigen Gründen ohne vorherige Ankündigung geändert werden.
Die Informationen in dieser Präsentation stellen keinerlei Zusage, Versprechen oder rechtliche Verpflichtung zur Auslieferung von Materialien,
Code oder Funktionen dar. Diese Präsentation wird ohne jegliche Gewähr, weder ausdrücklich noch stillschweigend, bereitgestellt. Dies gilt
insbesondere, hinsichtlich der Gewährleistung der Marktgängigkeit und der Eignung für einen bestimmten Zweck sowie für die Gewährleistung der
Nichtverletzung geltenden Rechts. Diese Präsentation dient zu Informationszwecken und darf nicht in einen Vertrag eingebunden werden. SAP
übernimmt keine Verantwortung für Fehler oder Unvollständigkeiten in dieser Präsentation, es sei denn, solche Schäden wurden von SAP
vorsätzlich oder grob fahrlässig verursacht. Sämtliche vorausschauenden Aussagen unterliegen verschiedenen Risiken und Unsicherheiten, durch
die die tatsächlichen Ergebnisse von den Erwartungen abweichen können.
Die vorausschauenden Aussagen geben die Sicht zu dem Zeitpunkt wieder, zu dem sie getätigt wurden. Dem Leser wird empfohlen, diesen
Aussagen kein übertriebenes Vertrauen zu schenken und sich bei Kaufentscheidungen nicht auf sie zu stützen.

15. © 2017 SAP SE or an SAP affiliate company. All rights reserved. Public
APPENDIX

16. 20
Neues aus der Plattform
Publikationen der Arbeitsgruppen
Plattform I 4.0
Fortschritts-
bericht 2018
Impulspapier:
Innovationstreiber
für digitale
Geschäftsmodelle
Sicherer Bezug von
CAE-Daten
Verwaltungsschale im
Detail
Zugriffssteuerung für Industrie 4.0-
Komponenten zur Anwendung von
Herstellern, Betreibern und Integratoren
Blockchain und
Recht im Kontext von
Industrie 4.0

17. 21
Innovationen &
Fachexpertise
Erfahrungen
des Mittelstand
Transferin
diePraxis
Feedback
Transfer-Netzwerk I4.0
Austausch zwischen Unternehmen und Fachexperten
Innovatoren und
Anwender Rückmeldungen
der Unternehmen
an Fachexperten
weitergeben
?%
!
Industrie 4.0-Lösungen im Einsatz
Rahmenbedingungen für I4.0 ausarbeiten
Den Praxistransfer mit
Fachinformationen
und Unterstützungs-
angeboten begleiten

18. 22
The Plattform in the world
As an international hub…
Industrial
Internet
Consortium
China Japan Alliance Industrie
du Futur + Piano
Nazionale
Industria 4.0
EU Australia
Smart
Manufac-
turing Leader
Coalition
Made in
China 2025
Internet Plus
Robot
Revolution
Initiative
IoT
Acceleration
Consortium
Joint Road Map Round tables
First
Stakeholder
Conference
Memorandu
m of Under-
standing

19. 23CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Learning
Recommender
(RTC 1808)
Job
Analyzer
Employee Self
Service Bot
Total Workforce
Insights
Resume Matching
(Available)
Manager &
Administrator Self
Service Bot
Career Planning
"People like me"
Knowledge
Bots
Payroll Fraud
Detection
SAP Fieldglass Live
Insights
Job Matching for
Candidates
Support and
Productivity Bots
Job Seeker
Resume Ranking
Intelligent Customer
Experience Suite
Lead
Intelligence
(Available)
Customer
Retention
(RTC 1811)
Ticket
Intelligence
(Available)
Product & Offer
Recommendation
(RTC 1808)
Influencer Map &
Deal Finder
Multi-Touch
Customer Attribution
Contextual
Merchandizing
Self-Writing
Expense
Computer Vision
Receipts
Anomaly
Detection
AI Expense
Approvals
Invoice
Digitization
AI Invoice
Processing
Itinerary
Capture
Chatbot
Bookings
(Available)Risk Impact
Predictions
Automated
Duty of Care
Proactive
Assistant
Semantic
Contract Repository
Item
Recommendation
(Available)
Self-Service
Contracts
Attribute
Normalization
(Available)
Semantic
Search
Item
Normalization
Sourcing
Optimization
Sourcing
Recommendation
Job Matching
Timesheet
Anomaly
DetectionProgram Office
Guidance
Job
Normalization
(Available)
Statement of
Work Builder
Contract Consumption
(Available)
SAP Tax Compliance
Smart Automation
(Available)
Payment Block- Cash
Discount at Risk
(Available)
Smart Alerts for Real
Spend and P&L Analysis
(Available)
Demand-Driven
Replenishment Adjustment
(RTC 1808)
Stock in
Transit
(Available)
Sales Performance
Prediction
(Available)
Cash
Application
(Available)
Predictive
Engineering Insights
Predictive & Prescriptive
Maintenance
(Available)
Demand
Sensing
Predictive Overall
Equipment
EffectivenessPredictive Quality
Management
(Available)
Smart Worker
Enablement on
Shop Floor
Supply Chain
Segmentation
Advanced
Forecast Accuracy
Digital Supply Chain and
Manufacturing
Chatbot
Bookings
(Available)
Intelligent Technologies:
Embedded Machine Learning

20. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 24Customer

21. 25CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Industrial Machinery and Components
Key trends are shaping the industry
 Time to Market
 On Time delivery
 Assets Effectiveness
 Forecast accuracy
Operational
Excellence
 Output based
Monetization
 Segment of One
 Servicetization
 Intangible Products
New Business
Models
 Smart Products
 Smart Factory
 Smart Logistics
Digitization of Products
and Processes
 Platforms
 Configurability
 Predictive Service
End 2 End
Solutions
Key Technology Innovations driving hyperconnectivity & intelligent products
 Chips are everywhere
 Cheap Communication
 Cloud Platforms
 3D Visualization and Simulation
 Augmented Reality
 Internet of Things
 Big Data Capabilities
 Mobile Applications
 Outsourcing
 Flexibilization of
Business Processes
 Manufacturing to
Assembling
Business
Networks

22. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 26Customer
Digital
Compass
To identify the right
opportunities for your
industry, McKinsey
developed a Digital
Compass to identify the
most promising
digitalization levers.
SOURCE:
https://ecosystems4innovating.wordpre
ss.com/2017/02/14/revolution-
platforms-digital-and-the-huge-impact-
on-business-in-the-future/

23. 27CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Configuration Management
Today: Disconnected value chains and multiple solution models
Sales Sourcing Production ServiceDesign
Engineering BoM
 Mechanical
 Electronical
 Software
 Services
Sales Configurator Purchased parts lists Manufacturing BoM As installed /
as maintained BoM

24. 28CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Service: The key in moving from products to solutions
Sell
Products
 Product lifecycle management / Engineering collaboration
 Make to stock / Make to order manufacturing networks
 Direct & indirect sales
Augment
with Parts &
Services
 Service operations
 Service parts management
 Product usage, maintenance and safety training
 Risk resilient financing
 Operations monitoring
 Performance based billing
Provide
Performance
Manage
Contracts &
TCO
 Value based solution selling
 Predictive maintenance
 Service level agreements

25. 29CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Discrete Manufacturing Industries
Our Digital Roadmap
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any
reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied
warranties of merchantability, fitness for a particular purpose, or non-infringement
SALES & SERVICE DESIGN DIGITAL SCM PRODUCTION
FutureVisions
subjecttochange
• CPQ: New Sales Configurator & Analytics
incl. [ML]
• Software Management Business, e.g.
Entitlement Management
• Service Management
• Rental / Leasing
• Retail for Automotive
• Subscription-based billing
• Thing Model, Digital Twin
• PDM Integration
• Embedded Software Management
• Connected Products
• Additive Manufacturing / 3D-Printing
• New Back-End-Configurator
• Project Information Network
• Component Supply Optimization incl. [ML]
• Direct Material Procurement
• Next-Gen JIT
• Connected Manufacturing
• Real time BIG Data analytics of machine
data
• Next-Gen Grouping, Pegging &
Distribution
GPD
Availableor
planned
Innovationsin
2017
• “Beyond CRM”
CPQ, E-Commerce (Hybris)
• SAP Asset Intelligence Network
• Vehicles Network (IoT)
• Vehicle Insights (IoT)
• Product Innovation Platform
• Engineering Control Center ECTR
• Innovation Management
• Product Lifecycle Costing
• SAP Visual Enterprise
• Integrate Business Planning
• Service Parts Management
• Ariba Collaborative Supply Chain
• S/4HANA 1610, ATP, eWM
• Connected Manufacturing e.g.
• S/4HANA 1610
• S/4HANA PP/DS
• MII and ME on HANA
• Predictive Maintenance (IoT)
Enterprise Management
• S/4 HANA e.g. “Discrete Industries & Mill Products” in Standard
• S/4HANA Cloud@DI
Cloud Platform
• SAP Leonardo (IoT portfolio)
• SAP Clea ([ML]-Portfolio)
• Digital Boardroom
• SAP Cloud Platform Apps
• Industry Business Networks
• Embedded SAP Software
• YaaS-platform for Monetization
• Blockchain
for e.g. Spare parts Management
• Virtual Reality
for e.g. Service Management ProcessesCross-LOB usage of emerging technologies