The document discusses the concept of a networked economy, which is characterized by hyper-connectivity, digitization, and personalization, projected to facilitate $65 trillion in global business trade by 2020. It emphasizes the transformation in various sectors such as transportation and energy, highlighting increased efficiency and growth through innovative approaches. Businesses are encouraged to embrace this economy by activating, optimizing, and transforming their operations to drive efficiency and capitalize on new opportunities.

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Networked Economy
in a Hyperconnected World
Dan Wellers, Strategy and Research Lead, Portfolio and Strategic Marketing,
SAP
April 8, 2015
© 2015 Ariba – an SAP company. All rights reserved.

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Networked Economy: The next economic
revolution
1850
Industrial
economy
2020
Networked
economy
1990
Internet
economy
IT
economy
1970
$0.36T
$12.10T
All figures are in Trillions; 1990 international dollars; Source: Department of Economics, UC Berkeley, BAIN 8
MacroTrends Brief.
$27.50T
Internal | © 2014 SAP SE or an SAP affiliate company. All rights reserved.
$90.0T
Gross
world
product

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An era of unprecedented change fueled by
hyper-connectivity
$65 trillion
global business trade
by 2020
2.5 billion connected
people on social
networks by 2020
75 billion
connected devices
by 2020
“The Internet of Things”
Internal | © 2014 SAP SE or an SAP affiliate company. All rights reserved.

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Hyper-connectivity is everywhere
Innovators connecting people, devices, and business
Société de Transport de
Montréal

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Networked economy is…digitized and tracked
Digitize everything we
touch.
Measure every move
we make.

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Networked economy is…
connected
Connect every device, system,
and service we use

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Networked economy is…shared
Use only what we need; pay as we go

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Networked economy is…personalized
Better convenience, choice, and value

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Bypass “the middleman”
Networked economy is…direct
Internal | © 2014 SAP SE or an SAP affiliate company. All rights reserved.

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Networked economy is
transforming people’s lives…
Better convenience, choice, and value

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Networked economy is transforming society…
Increased efficiency, economic development,
and problem solving

12. Networked economy is transforming business…
Greater customer loyalty, open innovation, and
resource abundance

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Customer loyalty through
hyper-personalized experiences
Tailor products and services
Create unified experiences across channels
Enable customers and partners to co-innovate

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Open innovation through unleashed human
potential
Disaggregate and democratize work
Leverage collaborative, crowd-sourced talent from anywhere
Invest in the new currency: knowledge

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Resource abundance through optimization
Allocate resources in real time
Build an agile infrastructure
Remove friction from the ecosystem

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Networked economy extends far beyond efficiency
benefits, it fuels and accelerates dramatic growth

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Transportation industry:
Increase efficiency and growth
How do you handle 3X more containers without
having to triple the port size?

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Energy industry: Increase efficiency and growth
How do you manage million-dollar assets from hundreds
of miles away?

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Plan for the networked economy now
Growth
Efficiency
Activate
(e.g., devices, equipment,
employees, products,
channel, suppliers,
customers)
Optimize
(e.g., infrastructure utilization,
speed to market, customer
service, capital, workforce)
Transform
(e.g., business models,
customer experience,
offerings, processes,
production, distribution)
The new enterprise

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Embrace the networked economy to
drive growth and efficiency
Activate Optimize Transform

21. © 2014 SAP SE or an SAP affiliate company. All rights reserved.
Thank you
SAP NetworkedEconomy
SAP NetworkedEconomy
#NetworkedEconomy