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The Future of Digital Business

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Keynote for the Manila Global Innovation Day, July 25th 2019. The future of digital business is about customer experience, increased productivity, and human-centric innovation -- and self-improving products, services, and processes.

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The Future of Digital Business

  1. 1. INTERNAL Timo Elliott Global Innovation Evangelist, SAP The Future of Digital Business @timoelliott
  2. 2. 2© 2019 SAP SE or an SAP affiliate company. All rights reserved. The Intelligent Enterprise
  3. 3. 3 Every company is becoming a data company 9,600,000 cars in 2017 100,000 cars in 2017 General Motors Tesla 2011 2018 $55Bn $2.5Bn McKinsey: the market for vehicle- gathered data will be worth $750 billion a year by 2030. $51Bn $51Bn
  4. 4. 4 What is an Intelligent Enterprise? Are your products, services, and processes improving automatically over time, and as people use them?
  5. 5. 5 Global internet penetration 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 51% 24% More than half of humanity is now online! 0% 30% 60% Mostly driven by entertainment Facebook still #1 but YouTube and Instagram are the fastest growing
  6. 6. 6 Asia Pacific leads in both users and potential Asia Pacific Europe Africa & Middle East Latin America & Caribbean North America 53% of Global Internet Users 48% Internet User Penetration in Region 15% 78% 13% 32% 10% 62% 9% 89%% Internet users Non-internet users 0 3B 6B Growth slowing (+7%) 48.7% is from mobile phones
  7. 7. 7 Smartphones +4% Y/Y Mobile-first commerce and banking soaring The Philippines is #10 China India United States Indonesia Brazil Japan Russia Mexico Germany The Philippines United Kingdom Iran (I.R.) Nigeria France Turkey 0 0.8B 1.6B Internet users Non-internet users Source: Bond Internet Trends 2019
  8. 8. 8 Only 3% of organizations say that they are succeeding with digital transformation today
  9. 9. 9 People-centered innovation Efficient operations Customer experience
  10. 10. 10 Customer Experience
  11. 11. 11© 2019 SAP SE or an SAP affiliate company. All rights reserved. Power to the people!
  12. 12. 12© 2019 SAP SE or an SAP affiliate company. All rights reserved.
  13. 13. 13© 2019 SAP SE or an SAP affiliate company. All rights reserved. Organizing company processes and incentives around the customer journey
  14. 14. 14© 2019 SAP SE or an SAP affiliate company. All rights reserved. Experience Management O-DATA: Operational data: speed, velocity, acceleration… X-DATA: Experience data: emotions and feelings
  15. 15. 15© 2019 SAP SE or an SAP affiliate company. All rights reserved. Improving customer experience: listen, understand, act Real-time response Strategic change Analysis of operational and experience data Embed listening and responding into operational systems Root cause analysis and re-imagined systems and products
  16. 16. 16© 2019 SAP SE or an SAP affiliate company. All rights reserved. Empowered customers are demanding more 78% of consumers believe it is no longer acceptable for companies to just make money, they expect companies to positively impact society as well.
  17. 17. 17© 2019 SAP SE or an SAP affiliate company. All rights reserved. Videojuegos de agro La experiencia del campo a través de la pantalla Prescriptive customer experiences
  18. 18. 18© 2019 SAP SE or an SAP affiliate company. All rights reserved.Copernicus Sentinel-2
  19. 19. 19© 2019 SAP SE or an SAP affiliate company. All rights reserved.
  20. 20. 20© 2019 SAP SE or an SAP affiliate company. All rights reserved. Best practices
  21. 21. 21© 2019 SAP SE or an SAP affiliate company. All rights reserved. Efficient operations
  22. 22. 22© 2019 SAP SE or an SAP affiliate company. All rights reserved. Cloud and in-memory, to rethink business systems Simpler 1000x fewer moving parts Lower running costs 10x more efficient, low maintenance Faster Faster acceleration More flexible Better use of interior space Safer Sets new records for safety Networked, intelligent Part of integrated system
  23. 23. 23© 2019 SAP SE or an SAP affiliate company. All rights reserved. Visibility
  24. 24. 24© 2019 SAP SE or an SAP affiliate company. All rights reserved.
  25. 25. 25© 2019 SAP SE or an SAP affiliate company. All rights reserved. Proximus Smart Reel project Reels used at more than 7,000 sites 450 copper reels were equipped with Proximus’ LoRa sensors “The deployment of the pilot has already resulted in significantly lower stock levels and material costs due to increased stock visibility, improved forecasts and lower order volumes.” Future plans: capture additional parameters, such as rotation, temperature and shock detection
  26. 26. 26© 2019 SAP SE or an SAP affiliate company. All rights reserved.
  27. 27. 27© 2019 SAP SE or an SAP affiliate company. All rights reserved. Which of these images is a fake, created by a computer?
  28. 28. 28© 2019 SAP SE or an SAP affiliate company. All rights reserved. Fake Faces via Generative Adversarial Networks
  29. 29. 29© 2019 SAP SE or an SAP affiliate company. All rights reserved. Machine learning to automate processes Source: Gartner, McKinsey % of time spent on activities that can be automated by adapting current technology Gartner: In 2018, half a billion users saved two hours a day, thanks to AI-powered tools Through 2023, AI will be one of the top workloads that drive infrastructure decisions.
  30. 30. 30© 2019 SAP SE or an SAP affiliate company. All rights reserved. 40% 70% 94%
  31. 31. 31© 2019 SAP SE or an SAP affiliate company. All rights reserved. Situational Awareness What do I need to do right now? Prediction What can I expect to happen? Suggestion What do you recommend? Notification What do I need to know? Perception What’s happening now? Automation What should I always do? Prevention What can I avoid? Source: Ray Wang, Constellation Research Making every process self-learning and self-improving
  32. 32. 32© 2019 SAP SE or an SAP affiliate company. All rights reserved. People-centered innovation
  33. 33. 33© 2019 SAP SE or an SAP affiliate company. All rights reserved. Bentley Motors
  34. 34. 34© 2019 SAP SE or an SAP affiliate company. All rights reserved. End-to-end employee experience 36% of employees say they would leave for a job with a more “digitally progressive” employer. Sungard Employee Experience Total Workforce Experience Apply Onboard Perform Learn Develop Collaborate Purchase Book Travel & Expense Manage Productivity/ Project Email Manage Assets Understand Total Rewards
  35. 35. 35© 2019 SAP SE or an SAP affiliate company. All rights reserved.
  36. 36. 36© 2019 SAP SE or an SAP affiliate company. All rights reserved. A more diverse workforce is seeking a greater purpose Employees are over three times more likely to be engaged at work if they work for a purpose-driven company (73% vs 23%)
  37. 37. 37© 2019 SAP SE or an SAP affiliate company. All rights reserved. Focus
  38. 38. 38© 2019 SAP SE or an SAP affiliate company. All rights reserved. The Next Big Wave of Analytics Months Days/hours Instant/in-line Time to insight Advanced insight High Low Augmented Analytics platforms Semantic layer- based platforms Visual-based data discovery platforms
  39. 39. 39
  40. 40. 40
  41. 41. 41© 2019 SAP SE or an SAP affiliate company. All rights reserved. New interfaces are fast becoming reality What’s the revenue by product for Southeast Asia? I’d like to book a vacation next week What’s the status of this customer’s order? Hi Thoma s, Q2 2015 Q42018 45MM
  42. 42. 42© 2019 SAP SE or an SAP affiliate company. All rights reserved. Augmented Human Intelligence
  43. 43. 43© 2019 SAP SE or an SAP affiliate company. All rights reserved. Example: Best practice sales Prospective deals Which prospects should I call first? Which products should I try to sell them? How long will the deal take? Will it close this quarter?
  44. 44. 44© 2019 SAP SE or an SAP affiliate company. All rights reserved. Agility
  45. 45. 45© 2019 SAP SE or an SAP affiliate company. All rights reserved. People-centered innovation Efficient operations Happy customers
  46. 46. 46© 2019 SAP SE or an SAP affiliate company. All rights reserved.
  47. 47. 47© 2019 SAP SE or an SAP affiliate company. All rights reserved. 96% of the leaders say digital transformation is a core business goal compared with 61% for all others 92% of leaders report that they have mature digital transformation strategies and processes in place to improve the customer experience compared with just 22% of all others 48% of the top 100 leaders said that investing in digital skills and technology was most important for driving revenue in the next two years, compared with only 30% of others 7X As many of the leaders had invested in machine learning, (50% compared to 7%) Source: SAP Digital Transformation Executive Study with Oxford Economics
  48. 48. 48© 2019 SAP SE or an SAP affiliate company. All rights reserved. New technology Is bringing new opportunities
  49. 49. 49© 2019 SAP SE or an SAP affiliate company. All rights reserved. win / win / win
  50. 50. 50© 2019 SAP SE or an SAP affiliate company. All rights reserved. Innovation is about people, not technology It’s time to start creating self-improving products, services, and processes
  51. 51. Timo Elliott timo.elliott@sap.com Thank you! @timoelliott

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