Digital Economy in a Hyperconnected World

PowerPoint Presentation

Digital Economyin a Hyperconnected WorldInternal

1Slide 1: Digital Economy in a Hyper-connected World

The Digital Economy:How Hyperconnectivity will reshape the worldHyperconnectivity will reinvent the world economy; individuals, businesses and societies are becoming interconnected in real time, leading to a new Digital Economy that is more collaborative, intelligent, responsive, and efficient with dramatic increases in productivity and economic value. The Digital Economy will transform the way we live and work, how business runs, and how society functions and do this in a time frame that is radically shorter than any other major economic transition in history.

Digital economy: The next economic revolution

1850Industrial economy

2020Digital economy1990Internet economyIT economy1970$0.36T$12.10TAll figures are in Trillions; 1990 international dollars; Source: Department of Economics, UC Berkeley, BAIN 8 MacroTrends Brief.

$27.50TInternal | 2014 SAP SE or an SAP affiliate company. All rights reserved.

$90.0TGrossworldproduct

2Slide 2: Digital Economy: The next economic revolution

Key message: Our hyper-connected world is creating the next economic revolution the Digital Economy

Talking points: In every major economic revolution to-date, technological advances have driven major shifts in: How businesses operateHow people live and workAnd these shifts have resulted in significant step changes in gross world product (GWP)Previous economic revolutions: Industrial economy: technology change was the steam engine, textile manufacturing, gas lightingBusiness operations change: Shift to mass production and broad distributionPeoples lives change: A major shift from rural to urban living, increases in per capita income as middle class explodesIT economy: technology change was the greater access to computers for business (mainframe to minicomputer transition)Businesses operations change: process automation, centralized factory controlsPeoples lives change:Convenience from calculators, personal computers, automatic appliances, and moreOpportunities: the new knowledge worker Internet economy: All consumers have access to computers and computers are all connectedBusiness operations change: democratization of new business creation, direct connection to consumerPeoples lives change: how we communicate and transactOur next shift - the Digital economy: Change in technology includes:Exponential growth of number of connections between people, devices and businessesTHE RELENTLESS & SO FAR UNINTERRUPTED ADVANCE OF MOORES LAW, ACCELERATING DIGITAL TECHNOLOGIES FORWARDTHE POWER OF THE EXPONENTIAL FUNCTION IS POORLY UNDERSTOOD. E.G. 30 LINEAR STEPS CROSSES THE ROOM, WHILE 30 EXPONENTIAL STEPS CIRCLES THE PLANET 26 TIMES. WE EVOLVED AS LINEAR THINKERS, YET LARGE NUMBERS & THEIR EXPONENTIAL GROWTH DEFINE OUR WORLD. big data analytics, collaboration capabilities, smart applications, and security systems underpinned by abundant compute power, storage and data that can be delivered to any device instantaneously through the cloud EVEN MORE DEMOCRATIZATION OF BUSINESS CREATION. AN INTERNET BUSINESS IN 2000 COULD BE STARTED FOR AROUND $2M. TODAY THAT FIGURE IS DOWN TO $5KAnticipated to lead to another step change in productivity GWP expected to reach $90T by 2020

An era of unprecedented change fueled by hyper-connectivity

$65 trillionGlobal business trade by 2020

2.5 billion Connected people on social networks by 2020

75 billion Connected devices by 2020

The Internet of ThingsInternal | 2014 SAP SE or an SAP affiliate company. All rights reserved.

Slide 3: And an era of unprecedented change

Key message: The momentum of the past decade that has seen massive growth in connections between people and businesses is now being elevated to new levels by the internet of things. This era of exponential growth is the Digital economy.

PreambleOver the past decade we have seen significant changes in how people and business connect. The internet has moved from a push network of 90s, to one that provides peer-to-peer connections. This is highlighted in the hyper growth of social networks in the past decade. Enterprises have taken note of these technologies, ones that can connect 100s of millions of people together, exhibiting massive scale effortlessly. Not to be outdone business networks have also prospered, with millions of companies connecting their supplier, customer and payment systems to seamlessly engage in commerce. Both of these phenomena are clear signs that hyper connectivity is here to stay. (need to set up that iot is the fabric that will bring these two areas together to deliver NE)

By the numbers, heres what were talking about

Talking points:

>2.5 Billion: estimated connections between people on personal and business social networks by 2020 fully one third of the planet!Examples: Facebook, LinkedIn, Qzone, Weibo, Renren (China), Twitter, Google+, Tumblr, Line (Japan)

The technologies that enable these p2p connections to be discovered, established and maintained will be extended so employees, customers and citizens will be able to go further than any social network can allow them today - With opportunities for learning, collaboration and innovation that will benefit private and public sector alike.>

>$65 Trillion: estimated global trade between connected business by 2020 Global trade is estimated to grow to ~70% of gross world product (GWP) by 2020 (up from 50% today)Includes manufactured goods, consumer goods, digital information, services

As we move towards this goal, it should be noted that business networks have played their part in setting the stage

1.5 Million, $0.5TN: Over the past decade businessnetworks have become a part of the landscape, companies are driving a new, more connected way of operating that is fueling innovation and business advantage. More than 1.5 million companies, for instance, are connected to the Ariba Network the worlds largest, most global business-to-business trading platform. And they use it to transact over half a trillion in commerce on an annual basis. >

Now, add to this, the rise of the Internet of Things

75 Billion: estimated connections between devices by 2020Examples: smartphones, appliances, lighting, manufacturing equipment, agriculture, wearable computers

In 2014 we see the beginning of mass adoption of sensors and devices connected to the internet with approximately 9BN connected devices. IoT will now connect the current people and business networks to EVERYTHING ELag. When you couple these changes with improvements in network infrastructure, big data analytics and smart applications you have the entered the era of true hyper-connectivity.

Now we can ask

What can individuals, companies and society achieve when EVERYTHING IS CONNECTED? When you have a bidirectional network that connects people, business, process, data and everything together the possibilities are truly endless.

3

Hyper-connectivity is everywhereInnovators connecting people, devices and business

Socit de Transport de Montral

Internal | 2014 SAP SE or an SAP affiliate company. All rights reserved.

Slide 4: Hyper-connectivity is everywhere Key message: Innovators are connecting people, devices, and business

Talking points: Innovators are leveraging this hyper-connectivity to deliver new products and services that provide greater flexibility, service and value to both consumers and businessesSome examples of innovators that are influencing the way we live and work include Airbnb, Google Waze, Harley-Davidson and AT&T Optional point: highlight specific examples, as appropriateINDEED ITS ALREADY HAVING AN IMPACT. YOUVE ALL HEARD OF UBER & AIRBNB. DID YOU KNOW THAT BUT BY END OF THE YEAR AIRBNB WILL HAVE MORE BEDS THAN ANY HOTEL CHAIN ON THE PLANET - MORE THAN 850K BEDS. AIRBNB IS VALUED AT $13B. AND THEY OWN NO HOTELS.UBER HAS TAKEN OVER HALF OF THE TAXI BUSINESS IN SAN FRANCISCO. AND IS USED FOR THINGS THAT TAXIS ARENT USED FOR. LIKE GOING FOR DRINKS WITH FRIENDS, GROCERY SHOPPING, ETC. ESSENTIALLY REPLACING PERSONAL TRANSPORTATION, AND CREATING A HUGE NEW MARKET. SIDE EFFECTS, WHERE UBER ADOPTION IS HIGH, INCLUDE LOWER DRUNK DRIVING ARRESTS, HIGHER ALCOHOL SALES, LESS NEED FOR LATE NIGHT TOWING SERVICES.UBER IS EXAMPLE OF MONETIZING HIDDEN CAPACITIES AND DISRUPTING INDUSTRIES. UBER SAYS THEY WILL MOVE INTO LOGISTICS. THEY ALSO SAY THEY WILL DISRUPT THEMSELVES AND SHIFT THEIR FLEET TO SELF-DRIVING VEHICLES A MORE TRADITIONAL EXAMPLE IS HARLEY DAVIDSON. THEIR OWNERSHIP EXPERIENCE IS ABOUT CUSTOM MOTORCYCLES. BY CONNECTING THEIR MANUFACTURING MACHINES TO EACH OTHER, AND TO SOPHISTICATED PLANNING APPS, THE REDUCES THE TIME TO MAKE CUSTOM MOTORCYCLES FROM 21 DAYS TO 6 HOURS STRONGLY REINFORCING THEIR BRAND VALUESSOCIETE DE TRANSPORT DE MONTREAL ANALYSES DATA IN RIDER SMARTCARDS TO LEARN RIDERS TRAVEL PATTERNS. THEY MAKE THIS AVAILABLE TO LOCAL BUSINESSES SO THEY CAN CREATE IN CONTEXT (WHERE THE PERSON IS AND WHAT THEY ARE DOING) OFFERS. THIS PUBLIC/PRIVATE PARTNERSHIP YIELDED HIGHER SALES TO THE BUSINESSES, MORE SATISFIED RIDERS AND INCREASED TAX RECEIPTS.ATT & GE ARE EACH WORKING ON SMART HOME SYSTEMS AND PRODUCTS. GE IS PARTNERING WITH QUIRKY TO CREATE & CO-BRAND CONNECTED HARDWARE (QUIRKY IS AN ONLINE COMMUNITY OF INVENTORS THAT CAN BRING PRODUCTS FROM IDEA TO MARKET IN 29 DAYS)

The new companies are prime examples of using Digital Transformation - one the tools available to companies that embrace the new Digital Economy. This reflects transformational thinking that drives market valuations for companies like Airbnb to exceed those of traditional hoteliers like Hyatt and Wyndham.

Transition. So, what are the characteristics, or attributes, that distinguish this new Digital economy?

4

Digital economy isdigitized and tracked

Digitize everything we touch.Measure every move we make.


5Slide 5: Digital Economy is digitized and tracked Key message: In a Digital economy, well digitize everything and track almost every move we makeTalking points: Digitized and tracked means: Generating digital signals from analog objectsMeasuring, tracking and analyzing these signals for practical useIllustrated example Today, we some sports teams are using sensors to track sports equipment!Key stats from the balls are being digitally sent to a smart application, which then analyzes trends and makes suggestions for future game strategy and more Other examples: Tomorrow, we will digitize and track every package of food every pharmaceutical dose every car every lighting fixture and more

WHEN THIS IS POSSIBLE THE QUESTION IS WHAT CAN YOU DO WHEN EVERYTHING IS DIGITIZED & TRACKED? BETTER YET WHAT CANT YOU DO? OR WHAT CAN YOU IMAGINE?

Digital economy is connectedConnect every device, system, and service we use


6Slide 6: Digital Economy is connectedKey message: In a Digital economy, everything is connected; well connect every device, system, and service we use and every person or business we interact withTalking points: Connected means:Linking devices, systems, people by wireless communications Capturing and analyzing data Making decisions driven by data Illustrated exampleEXAMPLE: DRIVERLESS CARS WITH ON-BOARD CONNECTED DEVICES & SENSORS GETTING REAL-TIME INFORMATION FROM OTHER VEHICLES, AND USING LIDAR & RADAR, TO ACHIEVE CONTINUOUS 360 DEGREE AWARENESS EXAMPLES INCLUDE GOOGLE, PLUS MANY TRADITIONAL MANUFACTURES LIKE MERCEDES, TOYOTA, FORD, NISSAN, VOLVO AND BMW. TO VOLVO ITS ABOUT SAFETY, BUT IT PRESENTS AN INTERESTING BRAND CHALLENGE FOR BMWS THE ULTIMATE DRIVING MACHINE.ALL THIS IS COMING FASTER THAN ANYONE THOUGHT, LIKE EXPONENTIAL TECHNOLOGIES MOST OFTEN DO.IDC PREDICTED BY 2020 1/3RD OF ALL CARS WILL HAVE A DRIVERLESS MODE. TESLA IS DOING IT THIS SUMMER WITH A SOFTWARE UPGRADE TO THEIR MODEL S (HIGHWAY DRIVING ONLY). AND DELPHIS AUDI DROVE FROM SAN FRANCISCO TO NYC, DRIVING AUTONOMOUSLY 99% OF THE TIME. OF DRIVERS WOULD CONSIDER BUYING A SELF DRIVING CAR TODAY. 86% WOULD DO SO IF IT MEANT CHEAPER INSURANCE INSURANCE.COMABI PREDICTS THAT 10M AUTONOMOUS VEHICLES WILL BE ENTERING THE WORLDS HIGHWAYS EVERY YEAR BY 2032THERE ARE HUGE POTENTIAL BENEFITS. MORGAN STANLEY ESTIMATES THAT IN THE U.S. ALONE, IN AS SOON AS A DECADE:ANNUAL FUEL SAVINGS WILL BE $170BCRASH COST SAVINGS WILL BE ALMOST $500B PRODUCTIVITY INCREASES WILL BE $650B THIS EQUALS AN ANNUAL TOTAL OF $1.3T. THIS NUMBER IS:8% OF US 2012 GDP150% OF US 2013 DEFENSE BUDGET PLUS 30K LIVES SAVED AND 2M INJURIES AVOIDED.THIS IS ONLY MORGAN STANLEYS BASE CASE. THEIR BULL CASE TOTALS $2.2T.

Other examples: Smart home and smartphone apps will increasingly help us control:AppliancesLighting Security Pet feedersSmart glasses will augment reality (e.g., virtual family gatherings)

Digital economy issharedUse only what we need; pay as we go


7Slide 7: Digital Economy is sharedKey message: In a Digital economy Use only what we need; pay as we go Talking points: Shared means:Using only what we need Using less space storing things we use infrequentlyReducing responsibility and cost associated with maintaining stuffBuying usage as a service; paying as we go for the time used and value receivedIllustrated example:BESIDES CAR & ROOM SHARING THERE ARE OTHER EXAMPLES:OFFICE SPACECOUCHES (COUCHSURFING.COM)PARKING SPOTS THEY ARE EXPENSIVE. WHY NOT RENT THEM WHEN YOURE AT WORK? BUT NOW THIS CAN EXTEND TO EXCESS HUMAN CAPACITY EXAMPLE GIGWALK: IF A RETAILER WANTS TO KNOW HOW THEIR PROMOTIONS ARE BEING EXECUTED, GIGWALK LETS THEM ENLIST HELP FROM PEOPLE IN THE VICINITY, AND WHO CAN SPARE A FEW MINUTES, TO TAKE PICTURES OF THE PRODUCT DISPLAY & SEND THEM BACK TO THE RETAILER. THE PERSON GETS PAID, MONETIZING THEIR SPARE TIME. AND THE RETAILER GETS REAL TIME FEEDBACK AT LOW COST. WHERE ELSE DO WE HAVE EXCESS CAPACITY? TOOLS? LAWN EQUIPMENT? WHERE IS THERE EXCESS CAPACITY IN OUR BUSINESSES?

Other examples:Car sharing (e.g., Zipcar, Relayrides)Car rides (e.g., Uber / Lyft), Vacation room rental (e.g., Airbnb / VRBO)wifi sharing(e.g., Fon)

Digital economy ispersonalizedBetter convenience, choice, and value Internal | 2014 SAP SE or an SAP affiliate company. All rights reserved.

8Slide 8: Digital Economy is personalized Key message: In a Digital economy We get better convenience, choice, and value. Talking points: Personalized means:Getting tailored products and experiences from our favorite brands that suit our (segment of one) needsGetting them fast when and where we want themIllustrated example: We order custom shoes to exacting specifications and will be able to get these at a reasonable price, within a short period of timeCustom colors, sizes, materials, heel height, and moreOther examples:Personalized ProductsAutomotive/motorcycle (e.g., BMW, Harley Davidson)Apparel (e.g., Levi, Acustom Apparel) Personalized ServicesEntertainment (e.g., Hulu, Disney iBooks)Travel (automated identity and intelligent recommendations) Retail (e.g., Amazon, REI)

BUT ALSO COMING (AGAIN, FASTER THAN EXPECTED) IS 3D PRINTING, MOVING QUICKLY FROM PROTOTYPES TO COMPLEX PRODUCTS. 3D PRINTING WILL TAKE PERSONALIZATION TO A NEW LEVEL. WHY?WITH 3D PRINTING (OR ADDITIVE MANUFACTURING) THE COST/UNIT IS ESSENTIALLY THE SAME WHETHER YOU MAKE 1UNIT OR 1MILLION UNITS. THEREFORE ECONOMIES OF SCALE NO LONGER APPLY AND WHEN THAT HAPPENS, YOUR DESIGN CONSTRAINTS GO OUT THE WINDOW. NOW EVERY PRODUCT CAN BE FIT, MADE, & TAILORED FOR INDIVIDUAL NEEDSTHIS IS ESPECIALLY EXCITING IN MEDICINE WITH THINGS LIKE HEARING AIDS, HIP REPLACEMENTS, DENTAL BRIDGES- WHERE NEEDS TRULY ARE UNIQUE

Digital economy isdirectBypass the middleman


9Slide 9: Digital Economy is direct Key message: In a Digital economy By-pass the middle-manTalking points: Direct means:Eliminating unnecessary intermediaries or channels Enabling a direct relationship between buyer and sellerReducing friction in the ecosystemLowering barriers to entry from players traditionally stuck in another part of the value chainIllustrated example:Some of us are generating our own power using solar panelsWe have ability store and track electricitySome of us are even completely cutting out the need for the utility (with the exception of when there is excess power that we might want to sell, and then were happy to have that relationship)Other examples: Messaging and communications applications (e.g. WhatsApp, Skype); cut out Telecom providersCrowdsourcing applications (99 design, KickStarter, iStockphoto, Mechanical Turk); cut out traditional providers of servicesOnline Currency (bitcoin, QE); cut out the central bankOriginal content from content distributors (Hulu, Netflix, Amazon, Sony, etc.) cut out traditional TV content suppliers

Hyper-connectivity is everywhere


Slide 4: Hyper-connectivity is everywhere Key message: Innovators are connecting people, devices, and business

Talking points: Innovators are leveraging this hyper-connectivity to deliver new products and services that provide greater flexibility, service and value to both consumers and businessesSome examples of innovators that are influencing the way we live and work include Airbnb, Google Waze, Harley-Davidson and AT&T Optional point: highlight specific examples, as appropriateINDEED ITS ALREADY HAVING AN IMPACT. YOUVE ALL HEARD OF UBER & AIRBNB. DID YOU KNOW THAT BUT BY END OF THE YEAR AIRBNB WILL HAVE MORE BEDS THAN ANY HOTEL CHAIN ON THE PLANET - MORE THAN 850K BEDS. AIRBNB IS VALUED AT $13B. AND THEY OWN NO HOTELS.UBER HAS TAKEN OVER HALF OF THE TAXI BUSINESS IN SAN FRANCISCO. AND IS USED FOR THINGS THAT TAXIS ARENT USED FOR. LIKE GOING FOR DRINKS WITH FRIENDS, GROCERY SHOPPING, ETC. ESSENTIALLY REPLACING PERSONAL TRANSPORTATION, AND CREATING A HUGE NEW MARKET. SIDE EFFECTS, WHERE UBER ADOPTION IS HIGH, INCLUDE LOWER DRUNK DRIVING ARRESTS, HIGHER ALCOHOL SALES, LESS NEED FOR LATE NIGHT TOWING SERVICES.UBER IS EXAMPLE OF MONETIZING HIDDEN CAPACITIES AND DISRUPTING INDUSTRIES. UBER SAYS THEY WILL MOVE INTO LOGISTICS. THEY ALSO SAY THEY WILL DISRUPT THEMSELVES AND SHIFT THEIR FLEET TO SELF-DRIVING VEHICLES A MORE TRADITIONAL EXAMPLE IS HARLEY DAVIDSON. THEIR OWNERSHIP EXPERIENCE IS ABOUT CUSTOM MOTORCYCLES. BY CONNECTING THEIR MANUFACTURING MACHINES TO EACH OTHER, AND TO SOPHISTICATED PLANNING APPS, THE REDUCES THE TIME TO MAKE CUSTOM MOTORCYCLES FROM 21 DAYS TO 6 HOURS STRONGLY REINFORCING THEIR BRAND VALUESSOCIETE DE TRANSPORT DE MONTREAL ANALYSES DATA IN RIDER SMARTCARDS TO LEARN RIDERS TRAVEL PATTERNS. THEY MAKE THIS AVAILABLE TO LOCAL BUSINESSES SO THEY CAN CREATE IN CONTEXT (WHERE THE PERSON IS AND WHAT THEY ARE DOING) OFFERS. THIS PUBLIC/PRIVATE PARTNERSHIP YIELDED HIGHER SALES TO THE BUSINESSES, MORE SATISFIED RIDERS AND INCREASED TAX RECEIPTS.ATT & GE ARE EACH WORKING ON SMART HOME SYSTEMS AND PRODUCTS. GE IS PARTNERING WITH QUIRKY TO CREATE & CO-BRAND CONNECTED HARDWARE (QUIRKY IS AN ONLINE COMMUNITY OF INVENTORS THAT CAN BRING PRODUCTS FROM IDEA TO MARKET IN 29 DAYS)

The new companies are prime examples of using Digital Transformation - one the tools available to companies that embrace the new Digital Economy. This reflects transformational thinking that drives market valuations for companies like Airbnb to exceed those of traditional hoteliers like Hyatt and Wyndham.

Transition. So, what are the characteristics, or attributes, that distinguish this new Digital economy?

10

Digital economy is transforming businessGreater customer loyalty, open innovation, resource abundance and total visibility


Slide 12: Digital economy is transforming businessKey message: As business leaders, we have the ability to drive greater loyalty, open innovation, and resource abundanceTalking points (Build 1)Greater loyalty: The Digital economy gives businesses the opportunity to build customer satisfaction and create promoters through delivery of elevated experiencesOpen innovation: The Digital economy enables businesses to connect employees, partners, suppliers, and customers to collaborate on new opportunities and challenges Resource abundance:The Digital economy enables businesses to actively optimize resources in real-time by providing visibility into the current state and future requirementsTalking points (Build 2)So, how do businesses realize these benefits?The connections and data between people, devices and businesses are not enoughBusinesses can extract the real value from these connections by doing two things:1) analyze data to generate actionable insights 2) use the actionable insights to optimize processes and make smarter decisionsIn summary, these connections combined with actionable insights and optimized processes let businesses realize greater loyalty, open innovation and resource abundance

11

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


Slide 17: Transportation industry exampleKey message: The Digital economy fuels increased efficiency and growth in transportation Talking points: What:Embedded sensors in every truck, container and crane Connected to sophisticated port scheduling application for optimal routing and scheduling in real time Enables real-time visibility, decision making and action How Digital economy supports growth and efficiency in the transportation industry:Efficiency:It enables capacity growth in this case, the port accommodates triple the number of containers without any change to port size and infrastructureGrowth: It enables ~3x the amount of goods to pass through the port; generating ~3x increase in revenues

12

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


Slide 18: Energy industry exampleKey message: The Digital economy prevents disruptions and increases efficiency and growth Talking points: What:Embedded sensors in every turbineConnected to sophisticated operations application to proactively analyze and plan for optimal maintenance and work load schedules Measure the critical physical values pressure in pipes and temperature of machine partsDetect physical wear of mechanical parts (e.g., by sensing vibrations)Compare with past dataSet in correlation to past maintenance situationsExtrapolate into the futureHow Digital economy supports efficiency and growth in the energy industry:Efficiency:It enables labor efficiencies with automated work orders, remote management and workforce reassignmentIt enables budget savings with preventative equipment maintenance and remote monitoring(note: future revisions should include stats on % efficiency gains/improvements)Growth: It enables an increased amount of energy to be delivered with fewer outages; generating an increase in revenues(note: future revisions should include stats on % growth gains/improvements)

13

Construction industry: Increase efficiency and growthHow do you optimize a 100m tall asset and exceed regulatory codes?


Slide 18: Energy industry exampleKey message: The Digital economy prevents disruptions and increases efficiency and growth Talking points: What:Embedded sensors in every turbineConnected to sophisticated operations application to proactively analyze and plan for optimal maintenance and work load schedules Measure the critical physical values pressure in pipes and temperature of machine partsDetect physical wear of mechanical parts (e.g., by sensing vibrations)Compare with past dataSet in correlation to past maintenance situationsExtrapolate into the futureHow Digital economy supports efficiency and growth in the energy industry:Efficiency:It enables labor efficiencies with automated work orders, remote management and workforce reassignmentIt enables budget savings with preventative equipment maintenance and remote monitoring(note: future revisions should include stats on % efficiency gains/improvements)Growth: It enables an increased amount of energy to be delivered with fewer outages; generating an increase in revenues(note: future revisions should include stats on % growth gains/improvements)

14

Plan for the digital economy now

GrowthEfficiency

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 enterpriseInternal | 2014 SAP SE or an SAP affiliate company. All rights reserved.

15Slide 19: Plan for the Digital economy now Key message: Businesses can achieve the efficiencies and growth promised by the Digital economy by taking three major steps Talking points: To be in a position to gain advantages from the Digital economy, businesses should take three major stepsFirst major step is to activate. What do we mean by activate? To digitize, connect, and collect data on business assets including:DevicesEquipmentEmployeesProductsChannelSuppliersCustomersSecond step is to optimize. Optimization requires analyzing the data from these connections and gathering actionable insights to help reduce waste, improve agility and predictability. Businesses should focus on optimizing the following:CapitalTimeInfrastructureIntellectual propertyWorkforceBrand equityOur third step is to transform.Businesses will no longer be handcuffed by traditional processes, infrastructure, skills, and systems. We will have the opportunity to look for ways to completely transform not only our businesses but industries including: Business modelsCustomer experienceOfferingsProcessesProductionDistribution

The Digitalist

SAP Voice Forbes SiteSAP Centre for Business InsightRun Simple (with HANA)Simplify ITThe EconomistHyperconnected EconomyHyperconnected OrganisationsFor More Information

[email protected] @sharmad

16

Thank you


SAP Digital EconomySAP Digital EconomyDigital Economysap.com/digital-economy

17

Appendix

18

2014 SAP SE or an SAP affiliate company. All rights reserved.No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.National product specifications may vary.These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SEs or its affiliated companies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

19

Digital Economy in a Hyperconnected World

Technology

Transcript of Digital Economy in a Hyperconnected World