Don Mahoney, Vice President and Global Head of Chemicals
Industry Business Solutions, SAP AG
October 15, 2013
Driving Agility and Growth in the Chemical
Industry with Innovation from SAP
© 2013 SAP AG. All rights reserved. 2
Technology and Business Mega-Trends
Industry Applications Analytics Mobile Cloud
Source: SAP Market Model Estimate (SSRS Revenue)
Database &
Technology
Mobility
Big Data
Connect Data New Business Models
Cost efficiency
Investment Security
VELOCITY
VOLUME VARIETY
Socially Networked
© 2013 SAP AG. All rights reserved. 3
Expanding Addressable Market Via Organic Innovation and M&A
Mobile
Database &
Technology
Cloud
Analytics
Applications
BI/Analytics
Middleware
Core ERP +
Suite
2010 2015
$2.5B
$6.5B
Industry Applications Analytics Mobile Cloud
Source: SAP Market Model Estimate (SSRS Revenue)
Database &
Technology
Geographic expansion
SAP Business Suite on SAP
HANA
Continuous Innovation
SAP HANA
ByD
Gateway
Visualization
Predictive
BPC
GRC BW on SAP HANA
SAP BusinessObjects
© 2013 SAP AG. All rights reserved. 4
Industry Business Solutions Enable “Best-Run” Chemical Companies
Industry Applications Analytics Mobile Cloud
Source: SAP Market Model Estimate (SSRS Revenue)
Database &
Technology
Industry Enablement
Enabling the chemical industry to maximize
return on IT investment.
Solution Management Representing the chemical industry to
ensure solution relevance and value
Advisory Council Driving SAP’s mid- to long-term strategy
for the chemical industry
Strategic Projects Enhance the utility of current tools and drive
new sources of value delivery
Best-Run
Chemical
Company
Concept
© 2013 SAP AG. All rights reserved. 5
Chemical Executive Advisory Council (CEAC)
Industry Applications Analytics Mobile Cloud
Source: SAP Market Model Estimate (SSRS Revenue)
Database &
Technology
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Industry
Rapidly position for globalization & growth
Safely optimize asset performance & utilization
Sustainably drive product innovation and integrity
Globally manage complex & volatile supply chains
Proactively manage knowledge and talent
Profitably drive customer-centric sales & service
Driving Innovation and Value for the Chemicals Industry
Applications Analytics Mobile Database &
Technology
Cloud
© 2013 SAP AG. All rights reserved. 8
Chemicals Industry Value Map
Industry Applications Analytics Mobile Cloud Database &
Technology
End-to-End Industry Solutions • “Chemical Company in a Box”
• “Best Run Chemical Company”
© 2013 SAP AG. All rights reserved. 9
Discover SAP Solutions with Solution Explorer
Industry Applications Analytics Mobile Cloud Database &
Technology
http://www.sap.com/solutionexplorer
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End-to-End Industry Solutions
Example: “Chemical Company in a Box”
Industry Applications Analytics Mobile Cloud Database &
Technology
Key Building Blocks Solutions Value
• Tailored for the
chemical industry
• Simplified
Landscape
• Simplified
Deployment
• Simplified
Contract
• ONE package
and ready to go
© 2013 SAP AG. All rights reserved. 11
End-to-End Industry Solutions
Example: “Best Run Chemical Company”
Industry Applications Analytics Mobile Cloud Database &
Technology
© 2013 SAP AG. All rights reserved. 12
Applications
Powered by SAP HANA
Mobile Analytics Cloud Database &
Technology
Industry and LoB Solutions
SAP Product / Solutions Strategy Across 5 Market Categories Powered BY SAP HANA
Industry Applications Analytics Mobile Cloud Database &
Technology
© 2013 SAP AG. All rights reserved. 13
Innovation Without Disruption
Industry Applications Analytics Mobile Cloud Database &
Technology
Volatile and Complex
Supply Chains
(Integrated Sales and
Operations Planning on HANA)
Suite on
HANA
(Regulatory Impact Analysis)
ROLTA
Partnership
(ROLTA “OneView” Platform)
70% Faster reporting of EHS incidents
US$3 M Generated in first year after implementation
from SAP SCM solutions
© 2013 SAP AG. All rights reserved. 14
SAP Business Suite powered by SAP HANA
Industry Applications Analytics Mobile Cloud Database &
Technology
Lower Costs in
IT
Higher Business
Value
More Engaged People
© 2013 SAP AG. All rights reserved. 15
The SAP User Experience Strategy
New, Renew, Enable
Industry Applications Analytics Mobile Cloud Database &
Technology
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Quicker Data to Decision
Industry Applications Analytics Mobile Cloud Database &
Technology
Uses SAP Predictive Analytics to analyze market
trends and data to make better business decisions and
identify new opportunities
Greater flexibility in building KPIs for enterprise wide
performance management
Operational
Dashboards
(Preconfigured KPI framework
on Overall Equipment
Effectiveness)
Predictive Analytics and
Visualization
(Predictive Maintenance)
Price and Margin
Management
(SAP Price and Margin
Management by Vendavo)
© 2013 SAP AG. All rights reserved. 17
Access Anywhere, Anytime
Industry Applications Analytics Mobile Cloud Database &
Technology
Mobile Apps
platform
Sybase Unwired Platform (SUP)
Robust Device
Management and Security
Afaria Mobile Device
Management
Industry / LoB
specific apps
Syclo,
SAP Customer OnDemand
50% Decrease in lost assets using Afaria
Mobile Device Management from SAP
23% Increase in revenues per sale using SAP
CRM and Mobile Sales
© 2013 SAP AG. All rights reserved. 18
Transform Big Data Into a Big Advantage
Industry Applications Analytics Mobile Cloud Database &
Technology
PaaS
SAP HANA
Data
Platform
(SAP HANA, ASE, IQ, EIM)
SAP HANA
Enterprise Cloud
(Private and Public Cloud)
Integrated Development
Environment
(Integrated Sales and
Operations Planning on HANA)
CRM on HANA enhance user experience, accelerate
reporting and decision making, and reduce IT costs
Many pilots in process for Sales & Operations
Planning, Profitability Analysis, Compliance Checks,
LIMS data
© 2013 SAP AG. All rights reserved. 19
Accelerate Business Through Cloud Solutions
Industry Applications Analytics Mobile Cloud Database &
Technology
PEOPLE
CUSTOMER
MONEY
SUPPLIER
Business
Networks
(Ariba network, Banking
network)
LoB Cloud
Applications
SAP HANA
Enterprise Cloud
Enabled over 1.5M catalog SKUs for 33 countries via
ARIBA Network
Reduced invoice cycle times from 14 to <4 days
through ARIBA
© 2013 SAP AG. All rights reserved. 22
Boost Field Productivity and Better Meet Customer
and Patient Needs
AT A GLANCE
50% Decreased document processing time
50% Decreased lost assets
5% Increased employee productivity (in
product traceability)
RESULTS
Better service through dependable data and a
comprehensive view of the patient situation with
SAP Afaria mobile device management
Now that technicians have actual information from our central system, we
can react to customer requirements more precisely, give technicians nearly
real-time information, and integrate PDA information with our portal.”
José Antonio Garcia Espinoso, Project Leader, Air Products
© 2013 SAP AG. All rights reserved. 23
Boost Customer Satisfaction Through Better Inventory
Management
AT A GLANCE
90% Reduction in inefficiency-related logistics costs
18% Productivity gain in REACH-related tasks
100% Avoidance of compliance-related trial costs
RESULTS
Automated collection, processing, and assessment of
compliance data with SAP ERP
The SAP solution implementation has had a strong impact on how
Braskem fulfills customer demands, thanks to improved inventory
management. The return on the investment has been extremely fast.
Roger Ueno, Processes and Systems, Braskem
© 2013 SAP AG. All rights reserved. 24
Drive Corporate Goals and Improve Business Processes
AT A GLANCE
Greater flexibility in building key performance
indicators (KPIs) for enterprise-wide performance
management
Better ability to manage operations and
take timely, proactive actions
RESULTS
Improved decision making via faster access to clear
performance metrics via the SAP Supply Chain
Performance Management analytic application
SAP Supply Chain Performance Management helps our organization focus
on managing our core business KPIs versus looking at reports all day.
Alex Pierroutsakos, Global Chief Information Officer, Novus International Inc
© 2013 SAP AG. All rights reserved. 25
Increase Accuracy of Sales Forecasts
AT A GLANCE
75% Reduction in IT operation costs
10% Increase in sales forecast accuracy
100% Value generated in first year
after implementation
RESULTS
Increased the accuracy of sales forecasts through better
inventory management with implementing the global
availability to promise functionality (GATP) in the SAP
Advanced Planning & Optimization component
Not having an automated REACH compliance system is inconceivable to
us now. Without the SAP Environment, Health, and Safety Management
application we couldn’t manage our compliance obligations.
Edith Cerbelaud, Product Stewardship Manager, Perstorp Group