Delivering Real-Time Business Value for Passenger Travel and Leisure

July 2013

Delivering Real-Time Business Value

for Passenger Travel and Leisure SAP Business Suite Powered by SAP HANA

Public

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2 Public

The Internet and social media have created smarter

and choosier consumers who expect more

personalized choices. Travel and leisure companies

have to innovate continuously to align business

operations with customer needs:

Engage and align with the needs of end consumers

Respond rapidly to evolving trends to seize new opportunities

Run efficient and cost-effective processes while remaining

flexible and agile

The real-time opportunity


Engage and align

with the needs of

travelers

Predict trends and evolving customer needs

Gain customer intimacy and a 360-degre view of the

passenger

Provide personalized offers to target segments

Respond to

market dynamics

in real time

Leverage all touch points – such as Web, social

media, mobile, and so on – to connect to your

customers in real time

Improve loyalty and brand reputation through instant

and personalized responses

Drive profitable

growth with

streamlined

operations

Simplify interaction and engagement with travelers

across all channels in sales, marketing, and service

Leverage analytics to manage operations better to

control costs and profitability

Becoming an innovation-driven enterprise Align business operations with customer needs


SAP Business Suite, powered by SAP HANA The next-generation business platform

Real-time business

In-memory

Business

transactions

Digital

connections

Collaborative

business

Cloud Social

Big Data Mobile

One platform bringing it all together

Advanced

analytics


Industry value map for passenger travel and leisure Servicing the next-generation traveler

Customer Service and

Interaction

Loyalty Management

Multichannel Customer

Service

Strategic Demand

Management

Business Planning

and Consolidation

Fuel Management

Network and Route

Performance Management

Operations and Asset

Management

Maintenance Repair

and Overhaul

Operational Risk

Management

Real Estate

Lifecycle Management

Multichannel Sales and

Marketing

Multichannel Marketing

Sales Force Automation

Multichannel Booking

Technology

Solutions

Analytics Consumer Experience Data Management Application Development

and Integration Enterprise Mobility

SAP HANA Platform

People and

Talent Core Human Resources

and Payroll Talent Management

Time and Attendance

Management

Workforce Planning

and Analytics

Finance Financial Performance

Management

Accounting and

Financial Close

Treasury and Financial

Risk Management

Collaborative Finance

Operations

Enterprise Risk and

Compliance Management

Procurement Supplier Discovery and


Strategic Sourcing and

Contracting

Procurement and Order

Collaboration

Collaborative Invoice

to Pay

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management

IT Service

Management

IT Strategy and

Governance

Billing and Revenue

Innovation Management


Industry value map for passenger travel and leisure Real-time value for key end-to-end processes

Customer Service and

Interaction

Loyalty Management

Multichannel Customer

Service

Strategic Demand

Management

Business Planning

and Consolidation

Fuel Management

Network and Route

Performance Management

Operations and Asset

Management

Maintenance Repair

and Overhaul

Operational Risk

Management

Real Estate


Multichannel Sales and

Marketing

Multichannel Marketing

Sales Force Automation

Multichannel Booking

Technology

Solutions

Analytics Consumer Experience Data Management Application Development

and Integration Enterprise Mobility

SAP HANA Platform

People and

Talent Core Human Resources

and Payroll Talent Management

Time and Attendance

Management

Workforce Planning

and Analytics

Finance Financial Performance

Management

Accounting and

Financial Close

Treasury and Financial

Risk Management

Collaborative Finance

Operations

Enterprise Risk and

Compliance Management

Procurement Supplier Discovery and


Strategic Sourcing and

Contracting

Procurement and Order

Collaboration

Collaborative Invoice

to Pay

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management

IT Service

Management

IT Strategy and

Governance

Billing and Revenue

Innovation Management

Highest real-time

business value

for passenger

1

2 3

4

5


Today

KPI improvements are high-level estimates and will have to be validated for each customer situation.

Network and route performance management Business value for profitability and cost analysis

Data latencies and processes delays

that impact the ability to react to

issues and opportunities

Lack of data depth and user self-

service that affect internal decision

making

Siloed systems that suboptimize their

planning domain, demanding manual

intervention to align plans across

systems

Substantial amount of effort (time

spent) not directly adding value

Suboptimal resource efficiency and

effectiveness

Ability to analyze and predict

profitability along any dimension to

make decisions quickly, based on

actuals

Flexible modeling and what-if

scenario support

Real-time planning on top of existing

data systems, ensuring flawless

plans for all parties

Leaner processes from data capture

through data analysis

Increased productivity through

process-optimized analytics and

mobile support

Increase profitability of

flights and routes

across the network

Improve

Minimize

flight and ground

operations

operating costs

With SAP Business Suite on SAP HANA


Today


Maintenance, repair, and overhaul (MRO) Business value for asset operations and maintenance

Difficulty in analyzing large volumes

of operational service data to identify

root causes of asset failures and

downtimes

Delayed maintenance for updating

multiple systems for flight

configuration, log recording, spares,

maintenance, and certificates

Limited analytics of maintenance

records

Size of data on wear-down profiles

on assets too large and complex for

reliable failure statistics

Real-time monitoring of service

operations, service levels, and field

resource utilization

Real-time rescheduling of field

resources

Use of mobile devices to combine

data across multiple data sources

such as work order, parts tracking,

work recording, inspection, and

documentation

Fast access and analysis of real-time

service data from different sources

Predictive analysis on sensor data

from connected assets

Improve service-level

performance

Increase

Increase

maintenance turn-

around time

asset utilization

and reduce

unplanned asset

downtime



Today


Multichannel marketing (business to consumer (B2C)) Business value for multichannel marketing management

Inability to capture market

opportunities as they occur

Difficulty in distinguishing profitable

customers in the customer pool

Inability to data-mine social media

and internal customer data to exploit

it for customer segmentation and

real-time personalized offers

Spread of data across different data

sources that prevents a true 360-

degree view of the customer

Event-driven marketing automation to

orchestrate in- and outbound

activities

Easy identification of profitable

customers with account intelligence

analytics

Real-time analysis of Big Data to

understand preferences and buying

patterns better

Real-time access and assembly of

sentiments from social channels

One central platform for collecting all

customer data from various

channels, sources, and tools

Precision marketing to personalize

every interaction with the customer

Improve profitability by

0.5%

Optimize

Increase

return on

marketing

investments by

10%

customer

satisfaction



Today


Customer service Business value for multichannel customer service

High volume of customer records and

interactions resulting in increased

search times when handling

customer inquiries

Customers demand consistent

service across channels

When responding to social media

queries, service reps struggle to get

all relevant customer information

Limited ability to resolve customer

issues successfully, because

companies are unable to analyze and

resolve root causes of problems

quickly

Quick identification of customers and

a complete 360-degree view of

customers in real time

Provision of self-service capabilities

to customers

Faster routing of all inbound

communications to the best resource

Lightning-fast, Google-like customer

search

Ad hoc and advanced, real-time

analytics as a basis for more effective

collaboration with travelers to

increase customer satisfaction

Transform from service-desk

dependency to

provisioning self-

service

Improve

Increase

service quality

through an end-to-

end view

customer

satisfaction



Today


Manage financial performance Business value for financial performance management

Inability to perform financial what-if

scenarios of operations and prices to

simulate the impact of significant

market changes

Limited linkage between finance and

business operations

Long performance-management

cycles with complex consolidation

landscapes

Reporting, loading, and retraction

performance that limits planning

iterations

Inefficiencies due to disruptions

between planning and execution

Drill-down limited to OLAP

environment; no drill-through to

transactional data

Leveraging more granular data for

gaining full transparency and as a

basis for planning

Ad hoc analytics, iterative planning,

and real-time simulation supported

through real-time platform

No latency in heterogeneous

consolidation landscapes through

almost-instant response times

(even with a large number of complex

calculations)

Real-time closing activities

Improved performance for drill-down

(expand) and consolidation (collapse)

Fast drill-through to lowest level view

of transactional data in SAP Business

Suite applications

Improve financial

transparency and

forecasting

Reduce

Minimize

cycle times, month-

end closing times,

and manual effort

financial costs



Next step Business scenario recommendation and value discovery workshop

SAP offers a proven methodology and approach to

discover customer-specific business improvement

areas and quantify value potential.

We suggest such a workshop with your line-of-

business and IT experts.

As starting point, we recommend a performance

and usage analysis of your current system.

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Thank you

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Appendix with detailed customer cases


Customer case: European railway – transportation and logistics Summary validated scenarios

Feasibility

Bu

sin

ess v

alu

e

Lo

w

Hig

h

Low High

Passenger ticketing

system

(€55 million)

Annual revenue: ~€35 billion

Order settlement

reporting

(€2.6 million)

Legend

SAP Business

Suite on

SAP HANA

SAP HANA:

Applications

SAP HANA

Platform

1 Short term

Order settlement reporting

SAP HANA for use with a passenger ticketing

system

2 Medium term

3 In evaluation

Other functions – TBD in future discovery

workshops

SAP HANA Platform: Customer-specific SAP HANA, products: SAP NetWeaver BW on SAP HANA, high-performance applications (HPAs), and apps powered by SAP HANA SAP Business Suite on SAP HANA

Scenario

(business value)

Phase – deployment road map SAP HANA use cases mapped to

industry value map end-to-end solutions


Customer case: European railway – transportation and logistics SAP HANA Platform

Results over 5 years – on SAP HANA

only

Surplus US$52 million

ROI 970%*

Payback period 12 months*

-5.900

2.600

55.000

-10.000

0

10.000

20.000

30.000

40.000

50.000

60.000

2013 Phase 1

Costs SAP Business Suite on SAP HANA Applications Platform

€

*To be validated

SAP HANA Platform: Anything built on the platform that is customer-specific – new business processes and business models

SAP HANA, products: SAP NetWeaver BW powered by SAP HANA; high-performance apps (HPAs); applications – mapped to

inventory value map (IVM) end-to-end (E2E) solutions

Currently available functionality (SP0, 1, and 2) – 23 scenarios mapped to end-to-end IVM solutions, and planned

functionality(all of the end-to-end solutions on the IVM are in scope)

SAP HANA Platform

SAP HANA, Products

SAP Business Suite on SAP HANA

Annual benefits, SAP HANA

Platform: €55.0 million

Annual benefits, applications

powered by SAP HANA: €2.6 million

Annual benefits, SAP Business

Suite on SAP HANA

Estimated deployment costs

Total transition cost: €5.9 million

Based on actual SAP

customer engagements


Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation

sessions and may not be completely validated.

Innovation scope

SAP HANA, applications and SAP NetWeaver

Business Warehouse

End-to-end (E2E) solution

Financial accounting

Value potential 4

Feasibility 3

Low High

1 5

Low High

1 5

Business Context and Goals

Order-settlement reporting allows the company to allocate, monitor, and control the internal

costs of services

Business Challenges

Response times of data retrieval (cost center reporting) do not meet end-user requirements

Process Innovations

Fast response time of data requests provides decision makers with real-time data insights with

drill-down capabilities on any granularity

Contribution of SAP HANA

Single platform for order settlement data, synchronized with source systems in real time; line

item reporting for settlement orders; and user-centric and flexible ad hoc analysis

Value Drivers and Key Performance Indicators

Reduced total cost of ownership; process-cost reduction through transparent cost analysis

European railway – order settlement reporting Transportation and logistics


Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation

sessions and may not be completely validated.

European railway – passenger ticketing system Transportation and logistics

Business Context and Goals

Customer is looking for a solution that could replace the old ticketing system and provide a new

level of operational capabilities (50,000 transactions per second)

Business Challenges

Current solution was developed over 30 years ago, based on mainframes

Process Innovations

Fast response time of data-requests provides decision makers with real-time data insights with

drill-down capabilities on any granularity

Contribution of SAP HANA

SAP HANA was chosen both as an analytics platform and main part of the reservation system.

Several business applications are planned to be developed on SAP HANA.

Value Drivers and Key Performance Indicators

Revenue growth

Innovation scope

SAP HANA Platform

End-to-end (E2E) solution

Sales

Value potential 5

Feasibility 4

Low High

1 5

Low High

1 5

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