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Lars Olson, SAPMay 21, 2019

Design to OperateIn the Intelligent Enterprise

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The Digital Era is evolving into The Intelligence Era

ENABLING TECHNOLOGIES

CUSTOMER VALUE CREATION

• Mobile & Smartphoneubiquity

• Cloud Computing• Social Networks• Big Data

Cloud, Mobile & Big Data2000s - 2010s

DigitalTransformation

• Widespread PC adoption• Broadband Internet• ERP and business

process technologies

Client Server & Internet1990s - 2000s

Business ProcessAutomation

Mainframe & PCs1960s – 1980s

• Transistors & siliconrevolution

• Large scale MainframeComputing adoption

• Emergence of PC’s• Plant floor automation

IndustrialAutomation

• Machine learning (ML) andartificial intelligence (AI)

• Internet of things (IoT) anddistributed computing

• Blockchain

Intelligent Technologies2010s - 2020s

IntelligentEnterprise


The Intelligent EnterpriseThe foundation of a Digital Supply Chain

IntelligentTechnologies

IntelligentSuite

DigitalPlatformAI

Machine LearningAnalytics

IoT

Data Management

Cloud Platform

Network & SpendManagement

PeopleEngagement

Digital Core

Manufacturing &Supply Chain

Customer Experience

The Intelligent Enterprisefeatures 3 key components:

Intelligent Suite

Digital Platform


1

2

3

7


The Intelligent EnterpriseKey End-to-End Processes


IntelligentSuite

DigitalPlatformAI


IoT

Data Management

Cloud Platform


PeopleEngagement

Digital Core


Customer Experience

7

Lead to Cash

Total Workforce Management

Design to Operate

Source to Pay


Design to Operate in the Intelligent EnterpriseKey Differentiators


IntelligentSuite

DigitalPlatformAI


IoT

Data Management

Cloud Platform


PeopleEngagement

Digital Core


Customer Experience

Design to OperateKey differentiators:

Intelligence built intobusiness processes

Digital Twin alongvalue chain

Seamless Integration

1

2

3

7

Asset Centralfor all of IES4

End to End Visibility5


Assets

Customers

Manufacturers

Manufacturers

Customers

Suppliers

Top floor wants the Connected Supply Chain but... continues to organize in departmental silos

Manufacture OperateDesign Deliver

Plan


Digital Supply ChainConnect Digitally to Perfect Reality

Assets

Suppliers Customers

Manufacturers

Logistics Logistics

Manufacturers

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Customers

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CustomersCustomers

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HANNOVER MESSE April 1–5, 2019

2019 Design to Operate Showcases!

SAPPHIRE NOW May 7–9, 2019 Orlando, Florida

http://www.hannovermesse.de/en/exhibition/facts-figures/

https://events.sap.com/sapandasug/en/home


2019 Design to Operate Showcase Videos!

https://www.youtube.com/watch?v=vZhpO1G7_hw https://www.youtube.com/watch?v=gnpQ-k24XYM

https://www.youtube.com/watch?v=gnpQ-k24XYM https://www.youtube.com/watch?v=oeUqq4vIJAM

https://www.youtube.com/watch?v=vZhpO1G7_hw

https://www.youtube.com/watch?v=gnpQ-k24XYM

https://www.youtube.com/watch?v=gnpQ-k24XYM

https://www.youtube.com/watch?v=oeUqq4vIJAM


Procure Manufacture (subassemblies)

Sell Manufacture (finished product) Deliver

Operate

Create masterproduction schedule.

Receivesubassembliesinto warehouse.

Schedulesubassemblyproduction.

Producesubassemblies and

track progress.

Receive procuredcomponents into

warehouse.

Receivefinished productinto warehouse.

Plan transport, pick,pack, and load product

for delivery.

Receive assetmaster data andonboard asset.

Monitor assets with IoT data, performanalysis, predict asset failure.

Design

Plan supply fornew/changedcomponents.

Manage and trackinbound delivery.

Procure components tobuild subassemblies.

Registerserialized finished

product.

Plan assetmaintenance.

Plan

Perform and trackoutbound transportation

and receive proof ofdelivery.

Decommissionasset.

Receive customer feedback– define requirements and

system concept fornew/changed product.

Hand over tomanufacturing and service

to manage BOM androuting.

Plan demand fornew/changedcomponents.

Create product design, earlycost estimates and master

data for new/changed product.

Schedulefinished product

production.

Produce finishedproduct and track

progress.

Perform inspection,maintenance, and

repair.

Receive customersales order.

(assemble to order)

Request productimprovement.

Design to operate (overview)


Procure Manufacture (subassemblies)

Sell Manufacture (finished product) Deliver

Operate

Create masterproduction schedule.

Receivesubassembliesinto warehouse.

Schedulesubassemblyproduction.

Producesubassemblies and

track progress.

Receive procuredcomponents into

warehouse.

Receivefinished productinto warehouse.

Plan transport, pick,pack, and load product

for delivery.

Receive assetmaster data andonboard asset.

Monitor assets with IoT data, performanalysis, predict asset failure.

Design

Plan supply fornew/changedcomponents.

Manage and trackinbound delivery.

Procure components tobuild subassemblies.

Registerserialized finished

product.

Plan assetmaintenance.

Plan

Perform and track outboundtransportation and receive

proof of delivery.

Decommissionasset.

Hand over tomanufacturing and service

to manage BOM androuting.

Plan demand fornew/changedcomponents.

Schedulefinished product

production.

Produce finishedproduct and track

progress.

Perform inspection,maintenance and

repair.

Receive customersales order.

(Assemble to Order)

* Represent product families, see subsequent slide for detailed material list

Request productimprovement.

• SAP S/4HANA*• SAP Engineering Control Center• SAP Asset Intelligence Network

• SAP Integrated Business Planning*• SAP S/4HANA*

• SAP Integrated Business Planning• SAP S/4HANA* • SAP S/4HANA*

• SAP S/4HANA*• SAP S/4HANA*• SAP Logistics Business Network

• SAP S/4HANA* (EWM**)• SAP Logistics Business Network • SAP S/4HANA*

• SAP S/4HANA*• SAP Digital Manufacturing Cloud*

• SAP S/4HANA* (EWM**)• SAP Digital Manufacturing Cloud*

• SAP S/4HANA* • SAP S/4HANA*

• SAP S/4HANA*• SAP Digital Manufacturing Cloud*• SAP Asset Intelligence Network

• SAP S/4HANA* (EWM**)• SAP Digital Manufacturing Cloud*

• SAP Digital Manufacturing Cloud*• SAP Asset Intelligence Network • SAP S/4HANA* (TM***, EWM**)

• SAP S/4HANA* (TM***)• SAP Logistics Business Network

• SAP Pred. Maintenance and Service• SAP Predictive Engineering Insights

• SAP Asset Intelligence Network• SAP S/4HANA Cloud for intelligent

product design

• SAP S/4HANA*• SAP Asset Manager• SAP Pred. Maintenance and Service• SAP Predictive Engineering Insights

• SAP S/4HANA*• SAP Asset Intelligence Network

• SAP S/4HANA*• SAP Asset Strategy and Performance

Management• SAP Pred. Maintenance and Service

Receive customer feedback– define requirements and

system concept fornew/changed product.

Create product design, earlycost estimates and master

data for new/changed product.

• SAP S/4HANA Cloud forintelligent product design

• SAP S/4HANA*• SAP 3D Visual Enterprise*• SAP Engineering Control Center• SAP Product Lifecycle Costing

Design to operate (overview)

** SAP S/4HANA Supply Chain for extended warehouse management *** SAP S/4HANA Supply Chain for transportation management


Plan• Holistic view of demand• Balance inventory and service levels• Improve forecast accuracy

Deliver• Improve speed, efficiency and sustainability• Deliver perfect orders consistently and profitably• Increase utilization of warehouse and transportation

Manufacture• Optimize manufacturing processes and minimize waste• Improve collaboration with contractors• Increase agility and responsiveness

Operate• Manage lifecycle of physical assets efficiently and sustainably• Predict and simulate asset behavior• Avoid unplanned downtime

Design• Reduce time to market• Continuously and sustainably innovate• Deliver on customer demand

Digital Supply ChainFrom Design to Operate


Innovate digital products and services fasterEnable new business practices by managing productand asset intelligence across networks

Institute design excellenceDrive product development based on requirements withan integrated systems engineering approach

Compliant product lifecycle managementImprove collaboration and integrate productdevelopment to be first to market with innovative,sustainable and compliant products

Increase profitability and visibilityLoop back failure and operational analysis from serviceto engineering for design improvement and lowerproduct cost

Connect Digitally to Perfect Reality – DesignBusiness value for R&D/Engineering

8%increase in meetingrevenue goals with clearlydocumented and validatednew product requirements.

17%decrease in time to marketwhere product developmentprojects are managed fromconcept to launch.SAP Performance Benchmarking

SAP Performance Benchmarking


Connect Digitally to Perfect Reality – PlanBusiness value for Supply Chain

12%fewer days in inventorywith dynamic, frequentlyupdated forecasts.

40%shorter lead times withflexible rules-drivensupply-demand matching.

State-of-the-art business processesEnable new end-to-end business processes, models andrevenue streams

Synchronized planning processesEliminate planning silos through connectedand integrated planning processes

End-to-end visibilityProvide visibility on strategic, tactical and operationallevels across internal and external data

Faster planning cyclesReact faster to changes in the business throughcomplete integration across the supply chain




State-of-the-art business processesLeverage new technologies to identify and enablebusiness processes with highly flexible UI’s

Connected manufacturingEliminate manufacturing silos through a singledata model with connected, integrated processes

Top floor to shop floor visibilityComplete end-to-end visibility on strategic, tacticaland operational levels

Faster more efficient executionImprove throughput, increase quality, and reducewaste

Advanced analyticsLeverage configurable KPI’s to identify processbottlenecks and improve performance efficiency

Connect Digitally to Perfect Reality – ManufactureBusiness value for Manufacturing

8%increase in plan adherencewhere delivery dates areintegrated with materialavailability and real-timemanufacturing conditions.

28%decrease days in inventorywhere manufacturingprocesses are controlledthrough pull-basedproduction schedule.SAP Performance Benchmarking



Connect Digitally to Perfect Reality – DeliverBusiness value for Logistics

Balance customer service and delivery costsEnable efficient logistics and order fulfillment processesto increase speed and reduce cost and emissions

Warehouse ManagementOptimize labor, storage, and fulfillment costs

Transportation ManagementReduce costs and carbon footprint and improve service,efficiency, and sustainability

Logistics NetworksCollaborate with logistics partners andimprove fulfillment through visibility and IoT connectivity

93%increase of domesticon-time delivery.SAP Performance Benchmarking


Connect Digitally to Perfect Reality – OperateBusiness value for Asset Management

17%increase in return onassets where assetmanagement systemsare fully integrated.

79%decrease in accidentfrequency with monitoringof strong safety measuresfor people and assets.

State-of-the-art business processesLeverage new technologies to enable new assetmanagement business processes with highly flexible UI’s

Real-time insightsProvide end-to-end visibility on strategic, tactical andoperational levels

Connected assetsBring together information from operational and businesssystems using IoT for scalable transparency

Prediction and simulationDrive smarter decisions, improve reliability, and reduceoutages and emissions

Collaboration throughout the asset lifecycleShare asset information and collaborate on a cloud-based business network with integrated processes




The Intelligent Digital Supply ChainConnect Digitally to Perfect Reality

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Product intelligenceAsset intelligenceCollaborative R&D,

engineering andmanufacturing

ManufacturerOperator

Asset Management, predictivemaintenance and service


Evolution of the Digital Twin | From Data Repository to Intelligent Orchestrator

Intelligence

Analytics Control Simulation

Model Data Uniqueness Monitor

IntelligentEnterprise

PredictiveEnterprise

ConnectedEnterprise


Delivering the Customer Experience with SAP Digital Supply Chain

Design Manufacture Deliver Operate

Security Fiori & Mobile

• Leonardo Edge• Devices

Cloud Multi-device

AssetDomainSpecific

ServicesBusinessPartner Services

IoTApplicationEnablement

IoT Services

Leonardo Edge SAP Data Hub

Pipeline EngineHANA

SAP Vora

Cloud Storage

Analytics

Machine Learning

Applications

ReusableBusinessServices

TechnicalPlatformServices

Plan

….Partnerservices

….Partnerextensions

….Partnerapps.

Connecting Things Processing Data Store Data Analyzing Data

Devices


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SuppliersAsset Central

Asset CentralOne Common Foundation

Asset Central provides acommon master andtransactional data layer, a setof out-of-the-box integrationsto SAP back-end businessand Internet of Thingssolutions and standard basicfunctionalities enablingcommon next generationproduct and asset modelingand management.

Asset CentralA Digital Twin enabler for next generationproduct and asset modeling and management


SAP’s supply chain solutions digitally connect your entire supply chain,so you can deliver at your best today, while you adapt and continuouslyimprove to reshape how you deliver tomorrow.

With SAP, you can create a digital mirror of your complete supplychain—from design, planning and manufacturing to logistics andongoing maintenance—embedding intelligence from beginning to endand ensuring your customers are central to each and every phase ofyour business.

You get total visibility as products are designed, delivered and deployedby connecting your business processes with real-time data from assets,equipment, customers and suppliers.

Only SAP can deliver all the processes and data with embeddedinnovations like 3D printing, IoT, machine learning, and blockchain intoyour everyday operations. With SAP’s supply chain solutions, you getthe operational visibility and customer intelligence to manage your entiresupply chain digitally and execute flawlessly today, while transformingyour business for the future.

Why SAPConnect Digitally to Perfect Reality

Contact information:

Lars OlsonSolution [email protected]

Thank you.

mailto:[email protected]

1Customer© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Legal disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without

the permission of SAP. This presentation is not subject to your license agreement or any other service or

subscription agreement with SAP. SAP has 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's strategy and possible future developments, products and or

platforms directions and functionality are all subject to change and may be changed by SAP 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. This document is provided without a warranty of any kind, either

express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular

purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a

contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages

were caused by SAP´s willful misconduct or gross negligence.

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.

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