Innovation at sap

INNOVATION AT SAP 1
Innovation
at SAP
Our Unified Story
Run Simple.

Innovation with Purpose
Innovation is fundamentally tied to our vision of helping the
world run better and improving people’s lives. In order to do so,
we are driving innovation into our core business by permanently
enhancing our existing solutions and deploying state-of-the-art
technologies. We also put major effort in pioneering new markets
and disruptive technologies to define what’s next for business.
For instance, we explore the fields of machine learning, IoT
and blockchain, and support companies in activating their own
distinctive purpose. In brief: SAP drives continuous, adjacent, and
transformative innovation, all at once.
This means we embrace an innovative culture throughout the
entire company. We are driven by a future-oriented mindset,
and we are deeply anchored in our purpose to help the world
run better and improve people’s lives. We have established a
powerful network of interconnected programs and entities
which cover all dimensions of innovation. This book will provide
you valuable insights into SAP’s comprehensive endeavors in
the innovation field.
Let’s continue to shape the future together and innovate
with purpose!
Juergen Mueller
Chief Innovation Officer, SAP
About this Book
The explosion in digital technology has created unprecedented
opportunity to fundamentally improve every aspect of how we
live, work, and play. With our technology and product innovations
we are helping our customers solve complex mission-critical
and intractable problems. SAP solutions help scientists create
breakthroughs in medicine and healthcare. They provide our
youth with digital skills for the future. They expand financial
inclusion for the needy. And they help the world use resources
more sustainably.
Innovation is inspired by our vision to help the world run better
and improve people’s lives. Our unique strength lies in our
global reach, our relevance, and our relationships to drive positive
change for individuals and organizations alike. Together with our
customers and partners, these innovations help improve the state
of world – across society, the economy and the environment.
By infusing our innovation into our purpose, we demonstrate
the true impact of the SAP Brand. In 2016, SAP was ranked as
the #20 most purposeful brand globally in the 2016 Fit for
Purpose Index amongst all global brands in the 2016 BrandZ
Report. On the purpose index, SAP is the highest-ranked
technology company.
This book helps SAP communicate the full spectrum of our
innovations – defined by our purpose, brought to life through
our products, and integrated into our programs. The examples
in these pages provide an executive perspective that focuses on
the driving trends, our unique differentiators, and the impact to
our customers.
Vivek Bapat
Senior Vice President, SAP
Marketing Strategy and Thought Leadership

INNOVATION AT SAP 1
3D Printing 8
Blockchain 9
Connected Vehicle 10
Cyber Security 11
Consumer Insight 12
Digital Boardroom 13
Digital Business Modeling 14
Digital Government 15
Digital Medicine 16
Immersive Experiences 17
Internet of Things 18
Machine Learning 19
Predictive Analytics 20
Improving the Economy, Society,
and the Environment 3
Economy 4
Society 5
Environment 6
Table of Contents
PURPOSE-DRIVEN
INNOVATION
PRODUCT/TECHNOLOGY-
DRIVEN INNOVATION
PROGRAM-LED
INNOVATION
SAP Innovation Center Network 22
Design Thinking 23
Diversity and Inclusion 24
SAP Academy for Early Talent 25
Skills for Transformation 26
SAP.iO 27
SAP Next-Gen 28

INNOVATION AT SAP 2
Purpose-Driven
Innovation

INNOVATION AT SAP 3PURPOSE-DRIVEN INNOVATION
Adarsh Credit to
provide financial
services for
1 million dreams
Edesia to harness the
power of peanuts and
human determination
to nourish children
Esoko to link small-
holder farmers to
markets across Africa
Trenitalia to reliably
move 2 million
passengers every day
ASCO to make a
world of difference
in cancer care
Buenos Aires to
digitalize the city
to ensure residents
are safe
City of Cape Town
to save lives with
smarter cities
Roche to stop
diabetes in its tracks
with connected care
Alliander to save
energy for the world,
and money for
its customers
Ballance Agri-
Nutrients to help
farmers prosper
Stara to help feed
the planet
Fundação Amazonas
Sustentável to help
the Amazon’s river
people protect the
rainforest
Improving the Economy,
Society, and the Environment
The world today presents us with opportunities
like never before. But it also poses challenges on
a much larger scale.
The United Nations has defined 17 Sustainable
Development Goals (SDGs) to transform the world’s
economy, society, and environment. These goals are a
universal call to action to end poverty, protect the planet,
and ensure that all people enjoy peace and prosperity.
We integrate these goals with our own vision and higher
purpose: to help the world run better and improve people’s
lives. They inspire us to remain focused on doing our part
to solve the most pressing issues facing the billions of
inhabitants on our precious planet Earth.
As Lise Kingo, Executive Director of the UN Global Compact,
said: “Businesses today are expected to be part of the
solution to our world’s greatest challenges – from climate
and water crises, to inequality and poverty... For companies
ready to take on the agenda, the SDGs provide a platform to
show responsibility, pursue opportunity and innovation, and
inspire other businesses to get on board.”
Empowering our Customers
We believe digital technologies will enable companies and
organizations to tackle some of the world’s most complex,
intractable problems, such as abolishing poverty; saving the
lives of the more than 6 million children who don’t live to see
their fifth birthdays; and reducing global CO2
emissions by a
third – to name a few.
SAP’s opportunity is to provide our customers, partners,
and consumers with the tools they need to have an impact
– from empowering the poor through financial services and
providing personalized medicine, to building infrastructure
and combating climate change. In collaboration with our
customers and other organizations, we are determined to
deliver on our higher purpose of making the world a better,
more sustainable place and ultimately improve the lives of
billions of people.

INNOVATION AT SAP 4
Adarsh Credit: Providing Financial
Services for 1 Million Dreams
In India, having a cell phone is almost twice
as common as having a bank account.
Adarsh Credit Co-operative, with the help
of SAP Mobile Platform, is using cellphones
to drive financial inclusion in even the most remote
areas of the country.
Impact:
• 1 million Indian citizens get access to
financial transactions.
• 20% efficiency gains for 3,000 Employees and
100,000 Independent Representatives helping to
increase reach.
Edesia: Harnessing the Power of Peanuts and
Human Determination to Nourish Children
Malnutrition affects thousands of
children in developing countries that
lack necessary resources for proper
health. Edesia, a global nutrition solutions
company, with the help of the SAP Business One
application, helps manage food products distribution
and most importantly helps nourish children in the
most vulnerable places around the world.
Impact:
• Feeding >3 million malnourished children
in >46 countries so far.
• Goal to end malnourishment for 220
million worldwide.
Esoko: Linking Small-Holder Farmers
to Markets Across Africa
Esoko is a simple, but powerful,
communication tool for businesses,
government, NGOs, and others to
connect with farmers. By running SAP
Business One powered by SAP HANA in the cloud
in certain parts of Africa, Esoko is fighting poverty
more effectively.
Impact:
• Eliminated corrupt middlemen and put bargaining
power in the hands of hard working farmers to
command fair prices for their crops, ultimately
leading to higher incomes.
• Real-time access to weather information,
crop growing tips, and lines of credit.
Trenitalia: Reliably Moving 2 Million
Passengers per Day
Trenitalia Rail Company is running into
the future by using Internet of Things
technology. Trenitalia, with the help of
SAP HANA, is able to offer its customers a more
punctual, efficient service, while even reducing
maintenance costs.
Impact:
• Reliable, sustainable and safe mobility for 2 million
passengers per day.
• Reduction of 8-10% in annual maintenance cost.
Customer Value
Economy
Improving the Economy
Economic improvement goes beyond revenue growth. It
is also about providing meaningful, purpose-driven work
to people across the world—empowering their prosperity
through a living wage, shelter, and nutrition. Another key
component is to promote and enable innovation to develop
strong industries and infrastructure while protecting and
securing every individual and organization’s privacy.
Work & Prosperity
The main factor in ending poverty, hunger, exclusion, and
providing economic empowerment is fairly paid jobs.
By creating 30 million jobs every year, we can eradicate
poverty.* SAP® software helps companies and charitable
organizations work better, bringing economic prosperity
and creating work for people around the world.
We can help the 2.2 billion people who live on less than
$2 a day earn a decent living.*
Innovation & Security
Innovation is key to human progress and economic
development. But in this age of hyper-connectivity and cloud
computing, security and privacy are also major concerns for
all people, companies, and public organizations. SAP provides
innovative solutions with world-class security standards,
enabling our 345,000 customers to provide work, develop
industries, ensure the mobility of people and goods, and
thereby improve people’s standard of living.
We can help enable >2 billion people permanent access
to electricity who don’t have it today.*
For more information, visit:
Purpose on sap.com
*United Nations, Sustainable Development Goals –
17 goals to transform our world. www.un.org/
sustainabledevelopment/sustainable-evelement-goals
PURPOSE-DRIVEN INNOVATION

INNOVATION AT SAP 5
ASCO: Making a World of Difference
in Cancer Care
The American Society of Clinical
Oncology (ASCO) is using big data and
innovating on the SAP HANA platform
for CancerLinQ, which analyzes 850,000 electronic
patient health records to help physicians determine
the treatments likely to work best for each individual.
Impact:
• Improving the lives of >14 million people in the U.S.
with cancer.
• 850,000 electronic patient health records can now
be analyzed in real time.
Buenos Aires: Digitizing the City to
Ensure Residents are Safe
The city of Buenos Aires is plagued
by torrential seasonal rains, causing
flash floods that take lives and damage
property. The city uses SAP HANA to
analyze weather data and 30,000 sensors across the
city to identify areas needing immediate support.
Maintenance crews use dashboards to clear drains
and prevent floods… and save lives.
Impact:
• Improving the lives of 3 million residents in
Buenos Aires.
• 3,000 city employees have immediate access
to information, allowing them to be proactive in
preventing floods.
City of Cape Town: Saving Lives
With Smarter Cities
City of Cape Town leaders use SAP HANA
to help streamline information from six
departments into one incident report.
Firefighters and police can take pictures
of scenes and send them in. Further, responders are
equipped with geo-enabled mobile devices to keep
them constantly connected and to give them critical
information – like locating water hydrants.
Impact:
• Improving the lives of 3 million residents in
SAP technology facilitates better protection
for 3.8 million people with 500+ incidents
per day.
• SAP technology results in verifiable
statistics for greater accountability across
six emergency response agencies.
Roche: Stopping Diabetes in its Tracks
with Connected Care
Diabetes affects over 347 million people,
with total diabetes-related deaths
projected to increase by 50% over the next
10 years. SAP and Roche Diabetes Care’s mobile app
aims to combat the diabetes epidemic by allowing
physicians to track a patient’s progress in real time
via a mobile dashboard.
Impact:
• 24x7 monitoring for patients with type II diabetes.
• Pre-diabetic people can reverse symptoms and lead
a normal, healthy life.
Customer Value
Society
Improving Society
Health, education, access to technology, and public safety
are at the core of a peaceful and just society. They are what
enable citizen engagement, strong public institutions, and
human progress. When people are more productive and feel
a sense of belonging, they lead happier, healthier, and more
fulfilling lives.
Health and Education
Health and education are essential to well-being and
sustainable development. SAP technology is at the
epicenter of complex medical issues around prevention,
treatments, and cures for cancer, diabetes, and other
diseases. We are also deeply committed to empowering the
world’s youth, working adults, and the unemployed with the
right skills they need to thrive in the digital economy.
We can save the lives of >6 million children who today
don’t live to see their fifth birthday.*
Smart Cities and Safe Communities
Cities are centers of innovation and culture, but are facing
growing populations and aging infrastructure. Half of
humanity – 3.5 billion people – lives in cities today, growing to
60% by 2030*. SAP solutions for the Internet of Things can
help manage and monitor resources so cities can run more
sustainably and help citizens enjoy happier, safer lives.
We can improve the lives of the 60% of humanity who will
live in cities by 2030.*
Purpose on sap.com

INNOVATION AT SAP 6
Alliander: Saving Energy for the World
and Money for its Customers
Alliander N.V., the Netherlands’ main energy
distributor, relies on maintaining safe and
reliable networks and managing distribution
to provide energy service to over 3.5 million
customers. Alliander uses SAP HANA to gather and
analyze massive amounts of data to better maintain
assets, optimize its grid, and help customers save on
their energy bills.
Impact:
• Improved service to 3.5 million Dutch energy
customers, reducing bills by up to 20%.
• Cut time to identify gas pipes needing replacement
from 3 hours to 3 seconds, and load forecasting
time from 10 weeks to 3 days.
Ballance Agri-Nutrients:
Helping Farmers Prosper
The heart of Ballance Agri-Nutrients
is helping farmers create sustainable,
viable businesses. To drive better on-site
productivity and profitability for its farmers, Ballance
needed the right foundation for establishing its
company’s digital future. Ballance’s digital strategy is
built on SAP solutions, helping the company meet its
goal of creating a great customer digital experience
across every company touch point.
Impact:
• Increased sales productivity.
• Reduced month-end closing time.
• Improving connection with employees, suppliers,
customers, and networks with 75% faster key
business processes.
• Enabling customers to be productive with less
than one-second wait for real-time insight into
years of data.
Stara: Aiming to Help Feed the Planet
What started out in the 1960s as a
regional business in the south of Brazil
today exports its machinery around the
world. Stara’s agricultural machinery incorporates
systems that connect sensors to SAP systems
providing farmers real-time information. Through
innovation, Stara’s modern machinery improves
farmers’ productivity, supporting Stara’s goal to help
more efficiently generate food to feed the planet.
Impact:
• Efficiently generating more food by selling their
products to farmers in more than 35 countries
across the globe.
• Making positive impact by cutting order
and assembly line time from 11 hours to 21
minutes with SAP.
Fundação Amazonas Sustentável: Helping the
Amazon’s River People Protect the Rainforest
The Amazon is home to indigenous
communities that help protect the
prosperous river basin and the resources
of the forest, but their remote location
makes them difficult to reach. SAP’s partnership with
Fundação Amazonas Sustentável is simplifying the
technology and logistics that conservationists use
to monitor and protect the resources of the Amazon
River Basin.
Impact:
• Improving lives of 574 indigenous
riverside communities.
• Helping protect nearly 11 million hectares of the
Amazon rainforest generating oxygen for the world.
Customer Value
Environment
Improving the Environment
Climate change touches everyone today and will impact
the lives of future generations. Whether in rural or urban
areas, the need for water, clean energy, and responsible
development is key to continued prosperous life on
this planet.
Clean Planet and Climate Change
We are all affected by climate change. For example, energy
accounts for approximately 60% of total greenhouse gas
emissions*, so lowering energy consumption and producing
cleaner energy are essential to our well-being. SAP
technology is helping our customers make the world more
energy efficient, cleaner, and greener for future generations.
We can reduce by 1/3 global CO2
emissions back to the
1990 level.*
Responsible Growth
With the world population growing steadily, humanity will need
to provide water, food, and shelter to billions of additional
people in the coming years. For example, more than 80 percent
of wastewater resulting from human activities is discharged
into rivers or seas without any pollution removal*; therefore,
responsible growth practices are necessary to ensure the
survival of future generations. SAP provides solutions to
optimize resource utilization and minimize waste.
We can encourage millions of companies around the world
to adopt sustainable practices to clean water, resource and
energy consumption and production.*
Purpose on sap.com

INNOVATION AT SAP 7
Product/
Technology-
Driven
Innovation

INNOVATION AT SAP
“...Speed is critical
to us and we see
tremendous value
in extending SAP’s
capabilities further
down the supply
chain via UPS…”
“…Transform now ad-
hoc realm of industrial
3D printing into a
seamless, on-demand
manufacturing
process...”
“…Taking the pole
position with this
service and in the long
term it makes a great
deal of sense.”
“This is an attractive
proposition for
companies wanting
to reduce the amount
of physical inventory
they want to carry.”
SAP’s Position
The SAP/UPS partnership is
one of the first 3D Printing co-
innovation relationships. This
solution helps streamline the
entire process to mainstream
industrial manufacturing and
production. It leverages the Ariba
Network and SAP’s sophisticated
manufacturing modules to
ensure world-class quality
and transparency.
It addresses three core areas
that must be simplified and
standardized for companies who
wish to utilize 3D Printing:
Parts digitization: Parts
are analyzed, prioritized, and
digitized into CAD 3D design files,
and made ready for integration
into SAP business processes.
Collaboration and
certification: Parts are analyzed,
prioritized, inspected, and
certified for 3D printing.
Production: Manufacturing
options are evaluated, from in-
house production to an external
3D printing service provider.
Ariba Network recommends the
optimal solution and enables
maximum flexibility for all
participants.
8PRODUCT/TECHNOLOGY-DRIVEN INNOVATION
3D Printing
Partnering with UPS to Create SAP
Direct Manufacturing
3D Printing (also known as additive manufacturing)
represents the digital transformation of both design and
production in the manufacturing industry. The technology
has been around for a while; the market took 20 years
to reach 1 billion USD. It took only five years to reach the
next billion, and 2014 and 2015 each saw 1 billion USD in
growth. 3D Printing eliminates the design and production
constraints inherent in traditional manufacturing. Product
design can now be optimized for customer need and
function, instead of production efficiencies.
3D Printing will have a profound impact on everything from
logistics to extended supply chains to trucking. 3D printing
usage is expected to grow 2,000% from 2015 to 2030.*
Reducing the $10 trillion USD of global inventory by just
5% would free up to close to $500 billion USD in capital.
Capturing 5% of global manufacturing is a $640 billion
USD market opportunity.
SAP Direct Manufacturing is focused on transitioning 3D
Printing from prototype to industrial production. SAP has
partnered with UPS to offer an end-to-end solution that
includes the SAP Direct Manufacturing solution, which
integrates SAP manufacturing and extended supply chain
solutions and UPS’s additive manufacturing locations and
global logistics network. SAP launched this solution with an
additional 10 co-innovation customers and partners. A core
group of companies will likely dominate this market. SAP
and UPS seek to be in that group.
Customer Value
This solution was just announced in May, 2016 and measurable impacts are not yet available.
However market feedback has been universally positive:
—Fortune
—IDC
*SAP Center for Business Insight 2015 calculation based on Forbes,
Roundup Of 3D Printing Market Forecasts And Estimates
—Jabil
—USA Today
SAP News Center Release

INNOVATION AT SAP
SAP’s Position
SAP continually integrates
new technologies that enable
our customers to benefit from
our structural strength at the
application level. Accordingly,
we are investigating several
blockchain use cases and
scenarios with high potential
for customer benefit.
Our goal is to be the trusted
blockchain innovator and
technology advisor, separating
hype from reality, on behalf of
our customers and the wider
SAP ecosystem.
9
Blockchain
Exploring Blockchain Technology for Our
Global Customer Base
Blockchain is a completely novel architecture for business
and a foundation for building a new generation of
transactional applications.
Conceived as the underlying technology for the digital
currency Bitcoin, the blockchain can replace trusted
third parties, like banks, in guaranteeing transactions and
coordinating agreement among parties. However, it is now
widely recognized that blockchain’s disruptive potential
applies far beyond currency. In fact, blockchain is relevant
to all industries and for any transactions that must be
secure and verifiable.
SAP has an unrivaled understanding of how business
operates across all industries and business functions.
From this position of strength, SAP views blockchain as a
promising and innovative new technology for enterprises
to streamline business processes, increase the efficiency
and efficacy of supply chains, and reduce transaction
costs. Blockchain technology has a wide range of
applications – many yet unexplored – for our global
customer base. And we expect to become a leading
innovator in the blockchain world.
Customer Value
SAP is evaluating opportunities around specialized software for
customers in banking, insurance, public sector, utilities and many
more. SAP is also investigating ways to connect existing SAP solutions
and customer landscapes with the emerging blockchain ecosystem
via the SAP Cloud Platform. Furthermore, blockchain is appealing for
SAP customers active in supply chain, manufacturing, procurement,
product lifecycle management and IoT scenarios.
—vs. the traditional time of several days. Fast cross-border money
transfers have emerged as one of the key applications for the blockchain
in banking. SAP is a Premier member of Hyperledger, an open source
collaborative effort to advance cross-industry blockchain technologies.
SAP has collaborated with the Canadian bank
ATB Financial, and fintech startup Ripple Labs
to transfer 1,000 Canadian dollars ($760) to
a German bank in 20 seconds
PRODUCT/TECHNOLOGY-DRIVEN INNOVATION
SAP Innovation Center Network - Blockchain site

INNOVATION AT SAP
SAP’s Position
SAP is unmatched in its ability
to manage enormous amounts
of sensor data – and then to
organize and analyze it to create
insights and intelligence in real
time. Only SAP Vehicle Insights
combines real-time vehicle
data with external data and
a company’s existing
business data.
Using real-time analytics and
prediction capabilities based
on the SAP HANA Cloud
Platform, the application enables
companies to shorten their time
to market for any scenarios
involving connected vehicles.
The SAP Vehicles Network
enables member companies
and partners to create mobile
apps to offer services, such as
fuel and parking, to consumers
independent of specific devices
or vehicles.
This unique network provides
a set of APIs for companies and
partners to integrate into their
apps, and works with
gas stations and parking
operators for integration into
their business processes.
The SAP Vehicles Network is also
built on the SAP HANA Cloud
Platform.
10
Connected Vehicle
Helping Companies Gain Insight from
Vehicle Sensor Data
It’s estimated that 250 million vehicles will be connected
by 2020. And this is not just cars and trucks, but all other
forms of transportation – as well as equipment for industrial
uses, farming, mining, delivery, and others. More than
$100B USD worth of mobility services will be enabled by
self-driving cars by 2035.
SAP is helping companies gain insights from vehicle sensor
data that is collected, mapped, and analyzed in real time.
This includes information about gear recognition, fuel
consumption, and driving economy that can be used to
improve the management of fleets and individual vehicles.
With predictive maintenance for things like mileage and
tire wear, repairs can be performed before a breakdown,
reducing overall costs. Deloitte research suggests that
the cost per mile driven could be cut in half by shared and
autonomous vehicles.
SAP is also helping companies connect and engage with
consumers who need vehicle-centric mobility services
such as parking and fuel, as well as the payment systems
to purchase them. Many companies have products and
services that meet drivers’ needs, but they cannot cost-
justify developing or promoting the necessary apps on their
own. McKinsey estimates that each minute car passengers
pay attention to mobile media content increases annualized
value by 5B euros.
Customer Value
SAP and BMW are working
with SAP HANA technology to
develop a marketplace of value-
added services for drivers and a
technology platform to run them.
In addition, SAP teamed up with
SEAT and Samsung Electronics
on a new connected car concept
that showcased two scenarios:
Digital Key, which lets the driver
unlock a car from a smartphone,
and Park & Pay, through whIch
drivers can find, reserve, and pay
for parking spaces.
automotive companies in 106
countries are innovating with
SAP solutions
most innovative automotive
companies in the world run
SAP solutions
manufacturers perceived to
provide the most innovative
technology run SAP solutions
7,100+ 8 of the 8 5 of the 5
SAP Vehicles Insights

INNOVATION AT SAP 1111
These principles are based on
proven security tenets. And,
they leverage SAP HANA-based
analytics to create a real-time
security intelligence and risk
management platform that
is used to secure our
customers’ business.
Secure Products
Security is
incorporated
into applications,
ensuring the
protection of content
and transactions.
Secure Operations
SAP delivers a
comprehensive end-to-
end cloud operations
security framework.
This includes hardened systems,
security patch management,
security monitoring, and end-to-
end incident handling.
Secure Company
Security-aware
staff, end-to-end
physical security
of SAP’s assets,
and a comprehensive business
continuity framework. That is
Secure SAP.
Cyber Security
Driving Security into the Core of
Enterprise Applications
Digital transformation technology advancements offer
great potential value and can deliver breakthrough
innovation for businesses. But they come at the cost of
heightened risks to information security.
SAP believes that companies should think of the security
risks to their business as being a product of four key
components related to one of a company’s most important
assets: its data. These are:
1. Value—Data is increasingly valuable to potential
hackers as a tool of extortion, exposure, and
corporate embarrassment.
2. Volume—Companies are amassing and storing more
data than ever before.
3. Vulnerability—Endpoints, networks, and other
systems are increasingly exposed to the outside world.
4. Sophistication—With the “commercialization” of
hacking, the number and sophistication of attacks
are at all-time highs.
To address security threats, SAP has developed a unique
approach that incorporates a critical element lacking from
enterprise software for over 20 years: security that’s built
into the very core of enterprise applications.
Customer Value
As risks mount, organizations
are shifting from a reactive view
on security toward a proactive,
predictive approach. A recent
study shows that while median
IT budgets remain constant, the
percentage going toward security
grew 3-5% between FY2014
and FY2016.
There is wide consensus among
companies that the cost of
maintaining security will continue
to rise. And the majority of
security professionals express
high levels of concern
about security breaches (63%),
increasing sophistication
of malware threats (65%),
complexity of IT security (59%),
and the proliferation of endpoints
to be protected (57%).
SAP’s Position
Three principles support SAP’s approach to security:
Securing Your Business white paper

INNOVATION AT SAP
Customer Value
SAP Digital Consumer Insight will attract new customers to SAP, and
is a new source of revenue for SAP. Here are some examples:
SAP’s Position
SAP Digital Consumer Insight is a
first-of-its-kind offering developed
by the SAP Mobile Services
team using technology from
the award-winning enterprise
version – Consumer Insight
365. It uses geolocation data
generated by mobile devices to
help businesses answer questions
about consumer demographics
and trends in almost any location.
The data is aggregated
and anonymized through a
sophisticated, patent-pending
algorithm.The data provided
includes how many consumers
pass through a chosen location
each hour, where they come
from, information about their
demographic characteristics such
as age and gender distribution,
and the devices they’re using.
SAP Digital Consumer Insight
is designed to be easily
consumable, and the low price
point makes it a unique offering in
the marketplace. It is priced to be
affordable to small businesses but
companies of any size will benefit.
It can be purchased with a credit
card for a low cost per report on
sapstore.com.
Hair By Heinz
This salon discovered
that a possible
new location in
San Francisco had
200% higher foot traffic than
one in Mountain View, and was
particularly busy between 10:00
a.m. and 5:00 p.m. (their hours
of operation). The higher foot
traffic suggested that not only
would this location have high
visibility, but that it would also
justify the higher rent premiums.
Shabu Restaurant
This successful
Park City, Utah,
eatery learned more
about their consumer
demographics and how they
change throughout the year
due to seasonal events. Insights
into peak foot traffic, where
visitors come from, and age
and gender breakdowns help
them craft specials, create
events, and better target their
marketing efforts.
Pentimenti Gallery
This art gallery in Old City
Philadelphia changed
its art after learning that
the largest age group in
the area was a youthful one, and
targeted outreach to specific
zip codes after learning where
visitors were coming from.
Consumer Insight
Generating Insights from Mobile Customer Data
In the age of digital transformation, data is becoming one
of the most important assets driving the creation of new
business models and offerings. SAP is in a unique position
to be at the forefront of this movement with access to a
wide range of business data as well as offering industry-
leading database and analytics technology for delivering
insights on the data. SAP has the trust of its customers
and the ability to do this in a way that balances protecting
privacy while enabling business to benefit on mobile
ambient data.
With SAP Digital Consumer Insight, SAP has created a
digitally-native, Data as a Service (DaaS) offering that
uses anonymized data from consumers’ mobile devices to
generate insight about consumer foot traffic in and around
specific locations.
This is also an example of a shift, as a result of digital
transformation, in how SAP views its business – from a
high-touch, relationship-driven sales model to one where
anyone in the world will be able to buy and to use an offering
from SAP with little or no human interaction.
12PRODUCT/TECHNOLOGY-DRIVEN INNOVATION
SAP Digital Consumer Insight

Get a complete
picture of the
company situation
in real-time
Align executive
decisions on one
source of truth across
business areas
Simulate impact of
potential decisions
to financials and
operations
Visualize in-
context insights to
maximize impact
on the audience
Answer ad-hoc
questions on-the-fly
Reduce boardroom
meeting preparation
time and effort
Digital Boardroom
Empowering the C-suite for Live Business
To win in this changing world, business leaders need to
make decisions based on information and facts as they are
created in real time. Too much time is wasted with review
cycles of outdated business presentation materials, and too
many conversations are limited to the prepared content.
SAP Digital Boardroom is a next-generation solution that
turns boardroom decision-making into a real-time digital
enterprise experience. It gives leaders a harmonized view
of company operations using real-time reporting, enabling
them to instantly understand the past, predict the future,
and drive execution. Every number and graph is directly
calculated off the latest transactional data. SAP Digital
Boardroom also gives companies the freedom to do
exploration and simulations.
The SAP Digital Boardroom contains industry and line-
of-business specific content (in Consumer Products,
Chemical, Engineering, Public, Finance, HR, Marketing,
and IT operations), which enables customers to jump-
start its use. Predefined models, stories, templates and
best practices dramatically reduce the time required
to implement and start using SAP Digital Boardroom.
This broad array of ready-to-use content also simplifies
installation and reduces total cost of ownership.
SAP Digital Boardroom is the only solution that lets
decision-makers use value-driver trees in planning and
predictive scenarios. Rich visualizations enable “what if”
analysis, and instantly illustrate how changing parameters
would affect KPIs.
Customer Value
SAP Digital Boardroom enables companies to:
SAP’s Position
With SAP Digital Boardroom,
business leaders can monitor,
simulate, and drive change
using very large, triple-
interlinked touchscreens
showing overview, exploration,
and context information views
simultaneously.
SAP Digital Boardroom
demonstrates our ability to
drive digital transformation and
enable live business across an
entire company in real time.
It is built on a modern digital
enterprise platform – with SAP
HANA at its core. The continuous
expansion into becoming a
globally established consulting
firm has led ABeam Consulting
to find ways to improve its global
visibility, financial planning,
and forecasting accuracy and
get real time evaluation of risks
associated with global and
regional consulting projects,
using SAP Digital Boardroom.
openSAP Digital Boardroom in a Nutshell

INNOVATION AT SAP
A financial
institution from
North America
developed new
business opportunities reaching
unserved customers.
A CPG company
based in South
America realized
the need for an
advanced technology digital
core to sustain their evolution.
A telecom operator
based in EMEA built
their blueprint for
transformation to an
agile digital vendor, identifying
opportunities for new products,
new customers, and a new
IT architecture.
A global premium
spirits company
developed an
Industry 4.0 roadmap
applying IoT technology to a
complex manufacturing and
logistics system.
SAP’s Position
Digital-Value-Drivers
Matrix Concept
This methodology is unique to
SAP, and we have the unrivalled
understanding of industries,
lines-of-business, business
processes, and enterprise
software and services necessary
to execute it successfully.
14
Digital Business Modeling
Giving Business and IT a Shared Vision for
Digital Transformation
Digital Transformation requires a strong bond between
business and IT, yet often these groups find it difficult to
work together productively. SAP Digital Business
Modeling gives business and IT a structured methodology,
as well as a common language, to jointly create strategies
for digital transformation.
This unique approach helps create a shared vision for the
enterprise’s digital transformation and aligns everyone
to the same view of the digital enterprise strategy. It is a
conceptually simple and semantically powerful method for
driving innovation.
At the core of SAP Digital Business Modeling is the Digital
Value Drivers Matrix, which combines key digital and
business model elements into a framework for discovering
the most critical digital value drivers for any organization.
The result is a strategic blueprint for digital transformation
that describes business model changes that act as a
reference for changes to processes, data, user experiences,
activities, roles, applications scenarios, and potentially the
entire enterprise IT architecture.
Customer Value
Successful examples of Digital Business Modeling
with SAP customers include:
Digital Business Modeling white paper
SAP Business Transformation Services

INNOVATION AT SAP
The European
Schools are
controlled jointly
by European Union
member states and institutions.
Since 1953 they have provided
broad, high-quality education
from nursery school through
university, keeping pupils
connected in a multilingual,
multicultural environment.
Today there are 14 European
Schools in seven countries
educating approximately
25,000 students.
The organization needed
to replace an out-of-date
IT system. Using a rapid-
deployment solution, European
Schools deployed SAP® ERP
powered by SAP HANA®
and the SAP Simple Finance
solution. The first to launch
SAP Simple Finance using the
SAP HANA Enterprise Cloud
service, European Schools are
streamlining processes for
greater accountability. Now they
want to leverage that common
platform to improve street
lighting and asset maintenance.
New Zealand’s
Department of
Conservation
(DOC) is dedicated
to protecting the country’s
ecological, recreational, and
historical assets. Information
Technology is crucial for
managing operations, and DOC
rangers working in the field have
unique technology needs. With
the SAP® Work Manager mobile
app, rangers can enter data and
make notes without returning to
offices that can be many miles
away. This helps the DOC deliver
on their mission by simplifying
data management, improving
visibility of field activity, and
helping to ensure resource and
staff availability.
The U.S. State of
Indiana reduced
infant mortality
rates by providing
better services to expecting
mothers. By analyzing vast
amounts of data, they found
that the problem wasn’t drugs,
education, or arrest rates. It
was the number of prenatal
doctor’s visits. This caused
a ripple effect, with the state
finding additional clues about
crime rates, drug use, and traffic
deaths. The same platform
is now used as a government
performance management hub
across several agencies.
Digital Government
Transforming Government through Digital
Best Practices
Government’s mission is to protect the community,
provide services, and help the economy prosper. However,
many governments are not fulfilling that mission. Citizens
can’t engage with government in the ways they expect,
government employees can’t adequately engage with their
organizations, nor can government leaders effectively
manage their bureaucracies.
As a result, trust in government is at all-time lows. Most
governments have not kept up with the rapid pace of
digital progress in the private sector. According to the U.S.
Government Accountability Office, 76% of the federal IT
budget goes toward just maintaining legacy systems.
In the public sector, technology has become inseparably
interwoven with public policy. Agencies that do not rapidly
adjust to technological advances cannot achieve their policy
objectives. SAP uses cutting edge technology including
analytics, in-memory computing and the cloud, as well as
citizen engagement practices like design thinking to solve
the most difficult challenges in the public sector.
SAP already works with more than 15,800 government
customers, combining our industry experience and digital
technology with their expertise in citizen service. We provide
solutions to 58% of United Nations member governments
to help improve citizen’s lives.
15
Customer Value SAP’s Position
By bringing together both
transactional processes and
analytical intelligence – and
combining all agency knowledge
sources in one platform –
organizations can turn data into
actionable information. That
allows decisions based on facts
and provides predictive insights.
As issues arise, agencies can
be more agile and responsive,
incrementally adding connected
solutions to address
new problems – without
disrupting operations.
Digital Government white paper

Digital Medicine
Improving Patient Outcomes Through Big Data Insights
Over the past few decades, medical discoveries in hygiene,
vaccination, and treatment have increased average life
expectancy by approximately 20 years.
However, the consquence of a growing, aging population
has been a dramatic increase in the cost of healthcare (now
17% of U.S. GDP, 11% in Germany) and diseases that are
more complex and difficult to treat.
The healthcare industry is transforming from blockbuster
cures for large populations to medical treatments that
precisely target individual patients based on understanding
root causes at the molecular level.
This begins with deep analysis of healthcare data for large
populations, which is then used to create statistically
sound, evidence-based treatment plans. The results from
each individual’s treatment are fed back into the larger
population data to create a continuous and powerful
feedback loop.
Only 25% of cancer patients show any improvement
using current approaches. And only 3% of cancer patients
participate in clinical trials. SAP believes that a network for
collaboration and a distributed, federated approach to data
will yield superior outcomes for patients, physicians, and
pharmaceutical companies.
16
Customer Value
Two examples of our digital medicine endeavors stand out:
SAP’s Position
CancerLinQ™ is the result
of a strategic technology
collaboration between
CancerLinQ LLC (a subsidiary of
the American Society of Clinical
Oncology) and SAP. It enables
the analysis of retrospective data
on large populations of cancer
patients to tailor the treatment
plan most likely to succeed given
a specific patient’s disease and
physical condition. The solution
runs on SAP HANA.
This approach provides
incentives for participants
to add their data, such as
creating insights into treatment
effectiveness. This knowledge is
substantial for pharmaceutical
development as well as for
reaching better patient outcomes
for oncologists. SAP does not
access the data, nor extract any
intellectual property. It all stays in
the CancerLinQ network.
The CancerLinQ solution was
created using Design Thinking
to understand the distinct
perspectives of the disparate
stakeholders, which include
oncologists, patients, and life
science researchers. It is a
solution with deep empathy
for all three.
“The project showed we could integrate various data sources, extract
relevant information, and present it to physicians in a way that enables
surprising new insights. In the future, we would like to use SAP HANA
at every diagnostic and therapeutic step, because every cancer is
different and can vary immensely from one patient to the next.”
—Prof. Dr. Christof von
Kalle, Head, National Center
for Tumor Diseases (NCT)
Heidelberg
National Center
for Tumor Disease
(NCT) Heidelberg
• Faster diagnosis: 10,000+
new patients seen each year
since 2011.
• Greater visibility: Detailed
patient history extracted from
structured and unstructured
data sources.
• High data volume: 150,000 data
sets combined with 3.6 million
data points analyzed during a
proof-of-concept test.
• Faster matching: Ability
to quickly match patients for
participation in clinical studies.
Mitsui Knowledge
Industry Co.
LTD. (MKI)
• Reduced genome analysis
time from several days to 20
minutes, enabling real-time
cancer and drug screening.
• Allowed pharmaceutical com-
panies to provide new drugs on
time and aid identification of
mutation targets for new drugs.
• Enabled a one-stop service,
including genomic data
analysis of cancer patients,
to support personalized
patient treatments.
Digital Futures Digital Medicine brief

Immersive Experiences
Redefining the Technology User Interface
Virtual Reality (VR), Augmented Reality (AR) and Mixed
Reality (MR) offer the potential to redefine our relationship
with technology and with the world around us. Virtual
Reality replaces actual reality with an immersive digital
simulation. Augmented Reality enables users to interact
with computer-generated content overlaid on the real world.
Mixed Reality blends holograms into actual reality. All three
promise to transform how we experience entertainment,
education, retail, real estate, product development, medical
care, warfare, and many other areas.
Globally, revenues for these immersive experiences
are predicted to reach $150 billion USD by 2020. SAP
is investigating where these technologies can present
new value through visualizing and interacting with
data in SAP applications. SAP is working on several
immersive experiences that will extend existing
solutions into the virtual world.
Customer ValueSAP’s Position
SAP is exploring use cases that
build on our leadership in big
data integration and analysis,
including:
• Big data analytics: VR
provides infinite space for
rendering big data analysis in
immersive visualizations. This
may produce progression and
treatment models of highly
complex diseases like cancer.
• Augmented reality: Potential
scenarios will provide detailed
information about whatever
space one is in, such as
location, occupants, windows,
floors, needed repairs,
outstanding IT tickets or, in
a hospital setting, patient
information and rounds
management.
• Heat mapping: SAP is
developing use cases for
several industries that show
information and sensor data
projected on digital twins or
real environments in an easily
perceivable way.
• 3D learning: possible scenarios
interactively show the user how
things are working or what a
configuration might look like.
17
The value for SAP
customers is in being
more effective in
their core scenarios,
assuming that data is integrated
and consumable from the
VR/AR device.
In addition, SAP may
leverage the VR/
AR trend for sales.
Customers recognize
SAP as more innovative when we
help them experience the many
scenarios that are possible with
such devices.
AR and VR, and MR
technologies are
evolving very rapidly.
SAP Immersive
Experience products are
approximately one year away.

Internet of Things
Accelerating Innovation from the Digital Core
According to McKinsey, the economic impact of Internet
of Things (IoT) could reach USD $11 trillion by 2025 –
representing 11% of global economic value. And by 2030,
the IoT could influence nearly the entire economy. By
2020 there will be 200 billion connected devices on the
Internet of Things.
SAP defines the IoT as a network of physical objects with
the ability to sense their environment and to interact with
business processes and systems. With real-time data
analytics, the IoT becomes a live communications network
for gaining insights and operational efficiencies. It is also a
critical enabler of Live Business, in which companies will
be able to sense and respond to changing business
conditions in the moment.
SAP’s installed base of ERP customers puts us in the best
position to help customers achieve business value from
the IoT. This is because most new applications (including
IoT apps) rely on master data from ERP, as well as
business processes, to create end-to-end solutions.
This is SAP’s wheelhouse.
Customer ValueSAP’s Position
SAP Leonardo is our portfolio of
advanced products and solutions
that connects the emerging
world of intelligent devices with
people and processes to achieve
tangible business outcomes. It
combines adaptive applications,
Big Data management, and
connectivity in packaged
solutions across lines-of-
business and industries, ranging
from connected products,
assets, and infrastructures to
vehicle fleets, markets, and
people (see figure).
These end-to-end solutions
are built within a technology
framework consisting of our
industry-leading SAP Cloud
Platform, SAP Leonardo
business services to enable rapid
application development, SAP
Leonardo for Edge Computing for
data collection and streaming,
and SAP Leonardo Bridge to
turn extended supply chains into
live supply chain environments.
Set in this context, SAP IoT
solutions can be built on a
foundation that’s already in
place. Connections to core data
and integration with business
processes are far simpler.
Innovative proofs-of-concept
using real customer data and
business processes can often be
built in minutes, and productive
apps can be up and running in
days or weeks.
SAP Leonardo positions
SAP as indispensable for our
customers’ future. It also gives
the IT function the ability to
offer innovation to the lines-of-
business while tightly linking IT to
the company strategy.
18
Trenitalia
Italy’s leading
rail transport
operator uses our
IoT platform to analyze data
from thousands of onboard
sensors in real time – helping
them dramatically improve
maintenance processes.
STILL
This company
designed an interactive
robot equipped
with sensor and
scanning technology that can
independently transport and
stack goods in a warehouse. It
uses SAP’s IoT cloud platform
to manage itself and connect to
customers’ ERP processes.
Piaggio
Europe’s largest
manufacturer of
motor scooters
relies on our IoT platform and
predictive analytics to provide
motorists with smart vehicles,
personalized experiences, and
relevant insights.
SAP IoT

Machine Learning
Intelligent Solutions: Constantly Learning
from Big Data
Machine learning is the practice of teaching a computer
how to spot patterns and make connections by exposing
it to massive volumes of data. Rather than programming
software to accomplish a task, the machine uses Big Data
and sophisticated algorithms to learn how to perform the
task itself. Machine learning allows applications to “think”
and independently make determinations. It shifts traditional
rules-based processes to intelligent ones that can discover
new patterns in large, unstructured data sets and make
strategic predictions all on their own. Machine learning
can also automate highly repetitive tasks such as checking
invoices and travel expenses for accuracy.
SAP offers tightly integrated machine learning solutions
embedded in the SAP Cloud Platform and across the entire
SAP application portfolio. By embedding machine learning,
our industry-leading solution will become self-learning. The
SAP Cloud Platform is the optimal foundation for machine
learning due to its openness and ability to deliver
services at scale.
Machine learning is only as good as the data and
processes that inform it, and SAP has access to the
market’s deepest and broadest pool of data across all major
industries. SAP systems touch more than 70 percent of the
world’s business transactions. Our solutions span business
and industry processes end-to-end, enabling machine
learning to be integrated into all elements of a company’s
IT infrastructure.
Customer Value
SAP offers Machine Learning applications for the following areas:
19
Finance
Automating payments.
Manually matching payments
to invoices is a labor-intensive
accounting process. SAP Cash
Application uses machine
learning to significantly boost
automatic matching rates.
Recruiting
Finding the right job candidate.
SAP Résumé Matching
automatically sifts through
thousands of job applications to
identify the best candidates for a
given job description.
Marketing
Logo and brand recognition.
This brand intelligence app
can recognize logos in videos
to better evaluate marketing
ROI in corporate event
sponsorships.
Customer Service
Anticipating needs. Gather,
analyze, and respond to customer
feedback at top speed. Efficiently
tag and cluster inbound social
media posts, e-mails, and more
– and automatically determine
classifications, routing,
and responses.
Sales & Marketing
Loyalty and retention. Get
instant insights into customers’
transactional behavior using
advanced machine learning
to mine, predict, and capture
leading churn indicators, and
even take action.
SAP Machine Learning

Groupe SAMSE
Building materials
distributor in France
increased direct
marketing response
rates by 220%.
Monext
Payment provider
in France reduced
e-fraud over
$1B annually.
Covenant
Transportation
U.S. trucking firm
reduced driver
attrition in an
industry with 100%
annual turnover.
Cox
Communications
U.S. cable provider
increased campaign
response by 260%.
MBank
Large bank in Poland
anticipates future
demand and provides
relevant offers to
specific groups.
Proximus
Belgian telecom
reduced modeling
time from months
to days; quadrupled
campaign response.
Predictive Analytics
Making Predictive Insights Accessible to Everyone
In the new digital economy, high-performance
companies use historical data and algorithms to predict
behaviors and outcomes and inject these insights directly
into business processes.
With data volumes exploding, organizations need to extract
the maximum possible value, whether from transactional
data generated within the enterprise or from unstructured
data from external sources.
Although 90% of companies view advanced and predictive
analytics as important, fewer than 30% have currently
deployed them – and only 30% have plans to do so. SAP
BusinessObjects Predictive Analytics is a solution that
helps create, deploy, and maintain thousands of predictive
models to anticipate future behavior or outcome and
guide better, more profitable decision-making across
your digital enterprise.
In addition to supporting statisticians and professional
data analysts, SAP offers line-of-business and industry-
specific predictive applications that make predictive insight
accessible to everyone in the business.
Customer Value
SAP BusinessObjects Predictive Analytics helps enterprises create better and faster predictive results,
deliver machine learning at scale using a factory approach, and bring predictive insights
to where people interact – in business processes and applications.
* Sandhill, Dresner Benchmark Study Reveals Trends
in Advanced and Predictive Analytics
SAP Predictive Analytics

Program-Led
Innovation

SAP Innovation Center Network
Acting Together to Reinforce Organic Innovation
The Innovation Center Network creates growth businesses
for SAP by pioneering new markets and disruptive
technologies. It combines the best of two worlds: the
creativity and agility of startups with the backbone of a
world market leader in business software.
The SAP Innovation Center Network is driven by the
collaboration of more than 500 engineers, designers,
product experts, and business developers. Interdisciplinary
teams have end-to-end responsibility: from the first
proof-of-concept with a co-innovation partner to a market-
ready product. From a single pilot in Potsdam, the SAP
Innovation Center Network has grown to 12 global locations
across the world that act together to reinforce organic
innovation at SAP.
With a startup-like environment, the SAP Innovation
Center Network pushes the state of the art in computer
science and its applied fields to provide SAP with foresight
into future trends and opportunities ahead of the
competition. Research initiatives closely align with SAP
strategy while also investigating areas with potential for
successful new markets.
SAP ’s Position
Thought Leadership:
• Technology Scouting to
fill the idea pipeline and
create an annual Technology
Trend Report.
• Research Programs with top
research entities.
Software Engineering:
• SAP Machine Learning:
aimed at making all enterprise
applications intelligent. It can
be integrated into all elements
of an IT infrastructure.
• Blockchain: a distributed
ledger technology that can
radically improve transaction
networks, giving new
opportunities for innovation
while reducing cost and risk.
• Conversational Applications:
will enable humans to interact
with machines using natural
language and thus lead the
next big paradigm shift in
computing.
• Future of Work: support
companies in the
transformation to a purpose-led
organization by offering cloud-
based solutions that improve
employee engagement and
well-being, increase companies’
brand value, and accelerate
genuine knowledge work.
Customer Value
Ideate with Customers
• Work with customers & partners
to invent new solutions that
utilize emerging technologies.
• Validate pilots for ability to
scale into full-fledged solutions.
SAP.io
• Grow a generation of
revolutionary software businesses
in the SAP ecosystem.
• Support visionary startups
leveraging SAP’s data, APIs, and
technologies to build products,
find customers, and change
industries.
• Empower startup teams within
SAP to transform the way
businesses are run.
Intrapreneurship Program
• A“grassroots” innovation
program at SAP and a success
story for new culture injection.
• Cross-functional teams
have end-to-end control and
responsibility for their business.
• Strong mentorship and
protection inside of SAP.
22PROGRAM-LED INNOVATION
SAP Innovation Center Network
SAP Innovation Center Network Facebook

Educational Platforms: SAP is scaling design and a
design mindset with the next generation by creating
targeted online learning experiences (through Massively
Online Open Courses) and collaborating with universities
such as the Stanford school, Hasso Plattner Institute, and
University of California San Diego’s Design Lab.
Global Apphaus Network: Customer-facing innovation
spaces where customers work with SAP employees to
creatively tackle their real-world business challenges.
Build: Build aims to be the definitive resource for
scaling enterprise design innovation to help an
underserved enterprise IT market learn, adopt and
scale design thinking and user experience for the
digital transformation.
Design at Business Community: A community that
provides a forum for large companies to exchange
ideas, learnings and collaboration to transform their
organization using Design Thinking.
Design Thinking
A Strategic Differentiator for Enterprise Companies
As organizations reimagine their business on their digital
transformation journey, they are looking at Design Thinking
as a way to build and scale a culture of creativity. Current
digital trends are not just about technology, but also about
making breakthrough innovations to augment human
capabilities and improve lives. In the past year alone, over
20 companies across various industries and functions have
acquired design agencies to bring in design knowledge and
skills as a source of competitive advantage.
While other enterprise vendors are just beginning their
investments in Design Thinking, SAP has been at it and
grown organically for over a decade, with a strong track
record of Design Thinking-driven innovation in over 500
customer engagements. What started as a vision by Hasso
Plattner with the establishment of a Design Services Team
in 2004 has now made SAP a pioneer in bringing Design
Thinking to large organizations.
SAP Design provides products and services to build a
design-driven innovation culture and scale both internally
and for our customers. SAP Design also engages with
global customers on innovation projects to scale a culture
of creativity in their organizations. Our unique approach
to Design Thinking is based on the intersection of people
(talent), process (Design Thinking and Lean startup
methodologies) and place (creative spaces to encourage
cross functional collaboration). The Fiori User Experience is
an example of the outcome of this approach.
SAP’s Position
Our multipronged approach to seed a design-driven
innovation culture includes:
Customer Value
Design Thinking projects have
enabled SAP to win deals, and
to protect and grow our core
business by making our software
more usable. Close collaboration
with customers has taught
important lessons on end-user
needs that are fed back to P&I
development.
Recently, SAP Design worked
closely with AMG to understand
why their design-to-production
process was hampering their
speed to market. Using Design
Thinking, we discovered the right
problems and jointly created
unconventional solutions
with AMG’s IT and business
teams. The solution won an
innovation award at AMG,
Customers are engaging with
SAP in establishing a design-led
innovation culture and setting
up Design Centers of Excellence
or Apphaus-like creative spaces.
This has changed the perception
of SAP to a strategic innovation
partner rather than just a seller
of business software.
PROGRAM-LED INNOVATION 23
Design Thinking with SAP

Diversity & Inclusion
Eliminating Bias Leads to Better Business Results
Diversity and inclusion, and gender equality in the
workplace are no longer optional—they are business and
economic imperatives. According to a McKinsey Global
Institute report, $12 trillion USD could be added to the
global GDP by 2025 by advancing women’s equality.
McKinsey research also shows that companies in the top
quartile for gender diversity are 15% more likely to have
financial returns above their national industry peers.
Despite overwhelming evidence of the impact of diversity
and inclusion, inequity still exists throughout most
organizations. In recognition of this, SAP has rolled out
“Business Beyond Bias,” a fully integrated, company-wide
leadership initiative designed to recognize and eliminate
unconscious bias and enable a more inclusive culture.
Business Beyond Bias:
• Helps SAP drive improved business results, fuel
innovation, and increase the satisfaction of both our
customers and our workforce.
• Employs our industry-leading company best practices to
reduce bias at SAP.
• Uses new and existing technology from SAP
SuccessFactors to help our customers move beyond
bias in their own organizations.
• Enables leaders around the globe to harness the best-
qualified and available talent.
Taken together, these steps help us live our vision: to help
the world run better and improve people’s lives.
SAP’s Position
Early talents: In 2015,
approximately 25% of all external
hires were considered “early
talents” (hires with professional
experience of up to two years).
Women in management:
SAP has publicly stated a
commitment to achieve a
workforce of 25% women in
management by the end of 2017.
We have made great strides
toward our goal and, as of year-
end 2016, have reached 24.5%.
Beyond bias: SAP provides
customers with technology
solutions to help them move
beyond bias.
Autism at Work: Our Autism
at Work program, an initiative
that enables people with Autism
Spectrum Disorder (ASD),
continues to gain momentum
and recognition, with 116
employees on the spectrum
employed at SAP as of YE 2015.
Analytics: SAP technology uses
powerful analytics that enable
organizations to measure and
report on inequity.
Beyond analytics: SAP is
elevating the discussion by going
beyond analytics that identify the
problem and using technology to
help identify potential bias where
and when it occurs and before it
becomes a problem.
Customer Value
SAP’s Diversity & Inclusion Customer Advisory Board research
provides insights on why customer members are focused on diversity
and inclusion. It comes down to the need to:
24
Achieve
business results
Better represent
and serve our
customer base
Fully engage
our employees
Drive innovation
and growth
Adapt to external
market conditions
Live up to our vision
to help the world run
better and improve
people’s lives
PROGRAM-LED INNOVATION
SAP Diversity and Inclusion

Academy graduates
closed over
€350M
revenue in 2016,
leading the charge
with customers on the
digital transformation
and driving the SAP
Cloud strategy.
SAP Academy for Early Talent
Empowering Early Talent to Accelerate Time to Impact
SAP is fundamentally changing the process for recruiting,
hiring and training salespeople. A dramatic change is taking
place in the industry: In 10 years, the workforce will shift
from 60% Baby Boomers to 70% Millennials. By the year
2025, Millennials—those born between 1982 and 1993—
will form 75 percent of the global workforce. And by 2020,
it’s estimated that 20% of SAP’s quota-carrying workforce
will reach retirement age. This shift requires a significant
investment in training to ensure that Millennials, also known
as “early talent,” are prepared for leadership responsibilities.
SAP Academy for Early Talent is not just another execution
arm of SAP’s learning organization. It brings game-
changing, culture-shifting innovation. As a catalyst for
change, and it has the power to influence and shape the
culture of SAP.
The Academy for Early Talent program is:
• Groundbreaking: First-ever global Early Talent
training program.
• Diverse: Representation from 50+ countries, 30+
languages, 45% women.
• Award-winning: Recognized for innovative recruitment
and training methods.
• Successful: 95% of recruits graduate from the Academy,
and 90% of graduates are still with SAP.
• Results-oriented: On average, 34% of Academy
Graduates achieved quota in 2016 vs. 32% of
experienced quota carriers.
is a collective effort to do
things differently. It continues
SAP’s path of innovating ahead
of the curve, and comes out
of a recognition that sales
organizations need to evolve
quickly in order to keep up with
the shifts in the workforce, the
marketplace, and the customer
base. The academy consists of:
• A world-class learning center
designed to accelerate time
to impact.
• A sustainable pipeline of
next-generation sales and
presales talent.
• New techniques, technologies
and learning practices to
drive innovation and revenues
through new skills and diversity
of thought.
Customer Value
graduates have contributed
significantly to the success
of SAP.
25
Results demonstrate that
graduates are performing on par
with experienced new hires.
SAP Presales Associates have
also contributed greatly to the
business, supporting deals
totaling €17M. In addition,
our 2015 metrics indicate that
99% of presales graduates
achieved a performance rating
of successful or higher in their
market units.
The SAP Academy for Early
Talent is also helping to create a
significantly more diverse culture
at SAP, with new thoughts and
ideas—a culture better prepared
to help SAP customers meet new
challenges in the marketplace.

IBM
IBM increased its
reach from 1,000
standard classroom
learners to 22,500
SAP Learning Hub learners.
Skills for Transformation
The Importance of Knowledge Sharing in the
Digital Economy
The digital economy is a new market reality that is
redefining everything and providing new opportunities for
value creation. But it’s also a challenge.
New technology is changing the game and creating new
products, new services, and completely new business
models. Business and IT need the right skills to define a
digital vision, as well as execution plans for how to get there.
Knowledge is a key tool to empower all roles to make
informed decisions. 80% of companies know that digital
transformation is important, but only 27% have a defined
strategy to implement it.
SAP offers a broad range of business transformation
knowledge, classroom education, and award-winning
platforms. Compared to classroom training, the number
of users benefiting from SAP’s digital education services
has grown more than sevenfold over the past three years
to more than 1 million people.
Customer Value
SAP is investing in creating and redefining education programs to lead the skills revolution and provide
guidance and support for our customers and our ecosystem.The digital learning offerings and content from
SAP help businesses succeed in digital transformation. Consider the following examples:
SAP’s Position
SAP is a recognized thought
leader and innovator in
knowledge sharing, and has
received many prestigious
awards across its digital
learning platforms.
Learners are taking courses
more frequently than before—
at about four times the
intensity and frequency over
the last three years. In the
traditional IT learning space,
participants typically register
for approximately 1.6 courses
per year. In the digital space, the
number has increased to almost
six per year.
SAP’s digital offerings include
openSAP, SAP Learning Hub,
openSAP Thought Leaders,
and SAP Education Network for
Digital Transformation.
26
Benic
Benic experienced
10-20% improvement
in consultancy
productivity, along
with 15% reduction of overall
education costs per year per
consultant.
ZURICH Insurance
This insurance giant
saw a 65% increase
in internal customer
satisfaction, higher
employee motivation, and a
greater number of certification
exams passed.
Mercedes-Benz
Mercedes
experienced a
95% reduction
in the number of training
days required.
SAP Education Network for Digital Transformation

Through the .iO Fund
we support visionary
startups leveraging
SAP’s data, APIs,
and technologies
to build products,
find customers, and
change industries.
Through SAP.iO
Venture Studio
we use the same
unique assets to
empower startup
teams within SAP to
transform the way
businesses are run.
SAP.iO
Growing a Generation of Revolutionary Software
Businesses in the SAP Ecosystem
Innovation at SAP can happen in many ways.
Through SAP.iO, we have the unique opportunity to
organically grow disruptive new products and deliver them
to SAP customers at startup speed.We are making SAP’s
unique assets – such as data,APIs and technologies –
available to innovators inside and outside of SAP and helping
them build products, find customers, and change industries.
Growing Internal Startup Teams
SAP.iO brings diverse teams of innovators together to build
the next generation of business applications. We invest,
empower and guide innovators from across SAP as they
build revolutionary software businesses. We work with
Intrapreneurs and Entrepreneurs in Residence
in order to simplify and transform the way businesses are
run, inspiring and educating SAP’s innovators worldwide.
Direct Investment and Startup Acceleration
SAP.iO is also investing in the next generation of enterprise
software startups. Through the SAP.iO Fund we collaborate
with early-stage startups that are relevant to SAP’s custom-
ers. We make strategic investments in startups that drive
customer value from digitization and build top-tier pro-
grams to support early-stage startup innovation.
SAP.iO is the place to build a generation of revolutionary software
businesses in the SAPecosystem,delivering at startup speed.
Customer Value
SAP.iO will drive a new level of
innovation throughout the SAP
ecosystem. SAP.iO’s team is
working to increase the number
of new software businesses that
reinforce SAP’s cloud and on-
premise applications.
In the future, we believe these
efforts will drive value for our
customers by stimulating rapid
growth in the innovative software
capabilities that easily extend
their landscapes.
SAP’s Position
SAP.iO is growing a generation of revolutionary software businesses
in the SAP ecosystem.
SAP.iO

Innovate with
purpose linked to the
17 UN Global
Sustainability Goals.
Seed in disruptive
innovation with
startups and accelerate
customers’ exponential
enterprise journey.
SAP Next-Gen in
partnership with
Hasso Plattner
Institute connects
companies, students, startups,
academic thought leaders
and researchers, accelerators,
venture firms, and other partners
for disruptive innovation with
purpose across SAP’s industries
and exponential technologies.
SAP Next-Gen
Innovation with Purpose
As part of SAP’s mission to help the world run better and
improve people’s lives, SAP Next-Gen drives innovation
with purpose, linked to the UN Global Goals, through the
global SAP Next-Gen Labs network of companies, students,
startups, academic thought leaders and researchers,
accelerators, venture firms, and other partners.
SAP Next-Gen is an innovation platform for SAP’s 345,000
customers across 25 industries in 190 countries. The
platform leverages 3,100+ educational institutions in
110 countries in the SAP University Alliances academic
innovation network, SAP’s 100+ innovation and
development centers, and startups in the SAP ecosystem.
SAP Next-Gen enables corporations to crowdsource
together with academia including students, academic
thought leaders and researchers; seed in disruptive
innovation from startups; and connect with SAP experts,
partners, and venture firms.
SAP Next-Gen is linked to the Silicon Valleys of the world,
from Silicon Valley in California to the Isar Valley in Munich
to Silicon Plateau in Bangalore to the Silicon Cape in South
Africa, and dozens of other innovation hubs globally.
All SAP Next-Gen services and activities support SAP’s
commitment to the 17 UN Global Goals for Sustainable
Development, and drive the SAP Next-Gen mission
to build next gen innovators and connect them to the
SAP ecosystem.
Customer Value
SAP Next-Gen aims to enable
customers in all 25 industries
served by SAP to connect with
next-generation talents for future
industry scenarios, events,
and services. Customers and
partners can join SAP Next-
Gen through memberships and
take advantage of SAP Next-
Gen services including SAP
Next-Gen Labs for exponential
technologies (IoT, machine
learning, Blockchain, virtual
reality) and special focus
groups (SAP Next-Gen Labs
for purpose-driven innovation
and for women).
SAP’s Position
SAP Next-Gen

Innovation Executive
Brief Contacts:
Kara Glencross
SAP Marketing Strategy
and Thought Leadership
kara.glencross@sap.com
Dan Wellers
SAP Marketing Strategy
and Thought Leadership
daniel.wellers@sap.com
www.sap.com/innovation

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