Driving Performance and Growth in Chemicals

Industry Executive Overview

Chemicals

Driving Performance and Growth in Chemicals

Executive

Summary

SAP Solutions SAP Innovations References Contact Us

© 2013 SAP AG

© 2013 SAP AG 2 / 40

Drive Agility and Growth in Chemicals

Uncertainty, complexity, and regulatory oversight are increasing in today’s market.

To help ensure sustainable growth and performance, chemical companies must

constantly innovate and adapt their products, processes, and business models.

Volatile prices of raw material and energy and the trend to adopt global and sustainable sourcing

policies have increased complexity and risks. Understanding spend across multiple business units,

collaborating with and tracking supplier’s performance, and measuring critical KPIs to mitigate

supplier-related risk becomes essential.

Globalization and shift of demand to emerging countries have significantly increased the level

of complexity and uncertainty within supply networks. Hence, proactively managing risks and

responding in real time to supply network events is crucial.

Growing competition and rapid commoditization have shrunk product lifecycles. In response to this,

an accelerated, streamlined innovation process, an active management of a sustainable product

portfolio, and best possible leverage of intellectual property are indispensable.

Further, a constantly growing number of regulations need to be monitored and managed to

minimize costs of compliance, risks of supply chain disruption, and damage to brand.

In response, driving excellence across all operations is pivotal. Find out how leading chemical

companies can achieve all these goals with SAP solutions and technology.

Executive

Summary


Profitable Growth

Market Situation

Transformation Through

Technology Innovation

Business Priorities

SAP Innovations

© 2013 SAP AG 3 / 40

To achieve sustainable growth, chemical companies must:

Safely optimize asset performance

Synchronize operations, make data-driven decisions, and proactively manage risk.

Meet demand at maximum profitability

Optimize pricing, supply, and delivery.

Increase returns on product innovation

Align product development with portfolio strategy and market delivery.

Sustaining Profitable Growth

SAP solutions help drive sustainable growth, profitability, and stakeholder

recognition through optimizing asset performance, order fulfillment, and return

on innovation.

Best-Run Chemicals

Executive

Summary


Profitable Growth

Market Situation



Business Priorities

SAP Innovations

http://www.youtube.com/watch?feature=endscreen&v=4L8KfLPoFdk&NR=1

© 2013 SAP AG 4 / 40

Best-run chemical companies profitably fulfill the needs of their global customers

across all sales and distribution channels by optimizing supply chain visibility and

responsiveness, product integrity, and operational continuity.

Best-Run Chemicals Priorities

Understanding the value drivers for each of these priorities is key to executing as a

best-run chemical company.

Product Innovation

Manufacturing Performance and Asset

Utilization

Complex Supply Chains

Customer-Centric Sales and Marketing

People and Talent

Finance

Procurement

IT Management

Technology Solutions

Executive

Summary


Profitable Growth

Market Situation



Business Priorities

SAP Innovations

© 2013 SAP AG 5 / 40

Executive

Summary


Profitable Growth

Market Situation



Business Priorities

SAP Innovations

For over 40 years, SAP’s innovations have helped companies transform and achieve the goals

they never thought possible – making more informed decisions and innovating to lead in new

markets. SAP enables the real-time enterprise, empowers new experiences, and unwires the

business.

Enable the Real-Time Enterprise

SAP’s integrated, real-time analytical, predictive, and in-memory database solutions improve the

business value of your information and optimize business outcomes.

Empower New Experiences

The SAP software solutions allow you to deliver simple, elegant, real-time applications rapidly

across any device, with the superior consumer-grade experience users have come to expect.

Unwire the Business

Connect with your customers, partners, and employees efficiently and securely with a market-

leading mobile platform and device management technologies from SAP.

Business Transformation Through Technology

Innovation

Revenue growth and profit are no longer sufficient benchmarks for success. In

today’s economy, companies need to stand out in crowded and highly competitive

markets. The pace of business is relentless, where today’s innovation becomes

tomorrow’s status quo. Organizations that embrace technology can transform to

gain a significant advantage rapidly over the competition.

© 2013 SAP AG 6 / 40

SAP Innovations

To achieve a sustainable competitive advantage, agility and more effective decision

making are paramount. This is achievable through analysis of “Big Data” on mobile

devices, supported by flexible, scalable cloud-based consumption models.

Executive

Summary


Profitable Growth

Market Situation



Business Priorities

SAP Innovations

Chemical companies have access to a vast amount of transactional data. Breakthrough database

and technology solutions such as the SAP HANA platform let you mine, consolidate, and

analyze that data at any level of granularity.

Leveraging that information requires flexible, scalable, and cost-effective analytics embedded

within business processes to monitor critical key performance indicators and enable real-time

predictive modeling and optimization, for instant decision support and future planning across

diverse business functions.

Also, successful chemical companies recognize that their assets are distributed, their people are

mobile, and their customers are on-the-go. That’s why they use mobile solutions to accelerate,

transform, and bring virtual reality to critical business processes.

And as IT transforms from a support function to a strategic driver, new cloud-based solutions for

discrete business functions provide low-cost, low-risk deployment – while helping ensure flexibility,

scalability, and full integration across end-to-end business processes.

© 2013 SAP AG 7 / 40

Sustaining profitable growth.

Chemicals Value Map

Executive

Summary


Customer-Centric Sales

and Marketing

Price and Margin

Management

Order and Contract

Management

Customer Service and

Support

Product Innovation and

Integrity

Integrated Product Development

Product Safety and Stewardship

Integrated Quality Assurance

Information Risk Management

Manufacturing

Performance and Asset

Utilization

Efficient Manufacturing Execution

Sustainable Operations

Manufacturing Visibility and

Performance

Asset Operations and Maintenance

Complex and Volatile

Supply Chains

Integrated Sales and

Operations Planning

Manufacturing Network

Planning and Execution

Logistics Fulfillment

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

Lifecycle Management

Strategic Sourcing and

Contracting

Procurement and Order

Collaboration

Collaborative Invoice to

Pay Commodity Management

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management IT Service Management

IT Strategy and

Governance

Product Innovation and

Integrity

SAP Solutions

Manufacturing Performance

Sales and Marketing


People and Talent

Procurement

Finance


IT Management

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Development

and Integration

© 2013 SAP AG 8 / 40

For sustainable growth in a dynamic global economy,

competitive differentiation is pivotal to success and is

achieved by delivering innovative and high-quality

products, solutions, and services while reducing

environmental footprint.

Product Innovation and Integrity

Mass customization, shortened product

lifecycles, and the demand for new products

and services in an extremely competitive

environment require chemical companies to

accelerate innovation and gain the best

possible leverage from intellectual property.

To do so, chemical companies must streamline

business processes and be even more

proactive in managing product portfolios.

In addition, companies must be equally

proactive in managing the complexity of

a steady increase in environmental and

global trade regulations. This helps minimize

increased risk of penalties, lost revenue, or

brand damage from exceeding emissions-

permit thresholds, shipping products without

registration, sanctioned-party shipments, and

the like.

24% Higher share of new-product

revenue for organizations

where new product ideas are

captured from all stakeholders

through multiple channels

Source: SAP Performance

Benchmarking

SAP Solutions

Priorities

Product Innovation

SAP Solutions

Executive

Summary


https://valuemanagement.sap.com/disclaimer/

© 2013 SAP AG 9 / 40

Benefits

Maximize return on R & D investment

Increase revenue from new products

Minimize time to market

Reduce costs of product compliance

Product Innovation and Integrity

Shorter time to market for new

products when all requirements

are communicated to suppliers

and supplier commitment is

secured in a timely manner


Benchmarking

Achieve superior returns on innovation by linking product development

with portfolio strategy, product stewardship, and delivery to market.

Chemical companies need market-driven product development that is based on

consistent data models and in sync with portfolio strategy, sales, and operations.

Integrated Product

Development

Streamline processes and reduce time to market by integrating product

development, customer requirements management, and production ramp-up,

based on unified data.

Product Safety and

Stewardship

Enhance marketability and minimize noncompliance risk by delivering safe products

with reduced environmental impact.

Integrated Quality

Assurance

Enable efficient and fast problem solving and foster continuous improvement

by managing quality issues and activities across systems.

Information Risk

Management

Protect critical-information assets and help ensure compliance with export

regulations for technical data.

27%

Executive

Summary


Priorities

Product Innovation

SAP Solutions

SAP Solutions


© 2013 SAP AG 10 / 40

With global competition, regulatory requirements, and the

need to improve margins increasing, companies need to

respond by continuously improving their manufacturing

operations and asset performance.

Manufacturing and Asset Optimization

Margin pressures and compliance requirements

are increasing across the industry, from

consumer-oriented batch processes to large

asset–intensive energy operations.

Best-run companies are improving efficiencies

while managing market and operating risk

by following smart planning and sustainable

manufacturing practices. Improved returns

on capital are achieved by increasing asset

utilization and leveraging outsourced manu-

facturing to reduce capital requirements.

These efficient, sustainable manufacturing

operations provide coordinated planning and

product recipe management to rapidly respond

to changing demand. Operating and business

data is integrated to enable the rapid

identification of financial or operational issues.

Plant risks are proactively managed, and all

resources are sustainably used to meet the

challenge of increased regulatory requirements. 10% Higher operating equipment

effectiveness when the

majority of maintenance work

orders are generated from

preventive maintenance

inspections


Benchmarking

Priorities


SAP Solutions

Executive

Summary


SAP Solutions


© 2013 SAP AG 11 / 40

Benefits

Improve return on assets

Lower operating costs

Increase demand responsiveness

Improve production yield and throughput

Increase asset reliability

Minimize compliance risks

Manufacturing and Asset Optimization

Lower manufacturing cost as a

percentage of revenue when

manufacturing execution systems

and shop floor are integrated with

enterprise applications


Benchmarking

Optimize asset performance and use by synchronizing processes, enabling

data-driven decisions, and proactively managing risk and safety.

To maximize manufacturing performance, companies must synchronize plant

with business functions and deliver real-time insights at the point of need.

Efficient Manufacturing

Execution

Manage overall plant performance with effective planning and execution to promote

sustainable utilization of resources and reliable operations.

Sustainable Operations Systematically identify, assess, and control risks to prevent incidents and

safety-system failures.

Manufacturing Visibility

and Performance

Establish metrics and real-time monitoring of manufacturing and asset operations

to increase uptime, narrow process variability, and reduce costs.

Asset Operations and

Maintenance

Develop predictive maintenance strategies to maximize asset utilization and

production lifecycle. 10%

Executive

Summary


Priorities


SAP Solutions

SAP Solutions


© 2013 SAP AG 12 / 40

Securing profitable and reliable order fulfillment along

global supply networks, which are characterized by

elements of volatility, uncertainty, complexity and

ambiguity, is absolutely critical to success for chemical

companies.

Complex and Volatile Supply Chains

Globalization and shift of demand to emerging

countries plus increased cross-border

shipments, erratic demand patterns, and

competition from emerging countries have

increased the level of complexity and

uncertainty within global supply chains and

networks.

So adopting customer collaboration, proactively

managing supply chain risks, and real-time

response to supply chain events is pivotal.

As supply cannot easily follow demand given the

capital intensity of chemical manufacturing

assets, optimizing inventories across multi-

echelon supply networks is a key challenge.

And as customers demand more in a growing

competitive landscape, reliable and profitable

order fulfillment from an end-to-end perspective –

including order commitment, inbound/outbound

logistics, and transportation planning and

execution, including aspects of environment,

health, and safety and global trade – is also

critical.

9% Higher on-time delivery in

chemical companies when

processes and systems are

integrated with key carriers,

freight forwarders, and the like


Benchmarking

Priorities


SAP Solutions

Executive

Summary


SAP Solutions


© 2013 SAP AG 13 / 40

Benefits

Increase perfect order fulfillment

Improve on-time delivery

Reduce total inventory: days of supply

Minimize transportation spend

Enhance forecast accuracy

Reduce order-fulfillment lead time


Lower days in inventory in

organizations where forecasts

are dynamic and updated

frequently


Benchmarking

Help ensure reliable order fulfillment at maximized profitability by managing

supply and delivery to consistently meet demand at minimum cost.

Chemical companies must synchronize demand with supply, drive reliable order

fulfillment, and gain visibility into supply chain risks and events, all in real time.

Integrated Sales and

Operations Planning

Enable planning and real-time analysis with a unified model of demand, supply

chain, and financial data across any dimension and at any level of granularity,

thus providing real-time what-if simulations and social collaboration.

Manufacturing Network

Planning and Execution

Integrate external manufacturing and procurement to orchestrate a responsive

supply network.

Logistics Fulfillment

Integrate end-to-end global logistics, planning, and fulfillment solutions to

orchestrate processes across the organization and beyond, while enabling

regulatory compliance and real-time event response. 12%

Executive

Summary


SAP Solutions

Priorities


SAP Solutions


© 2013 SAP AG 14 / 40

Get visibility into your sales performance and pipeline

and make profitable decisions based on consistent

management of prices and margins within your chemicals

and service portfolio – across all sales channels.


Fluctuating raw material prices, capital-

intensive assets, complex supply chains,

regulatory requirements, and mass customization

of products – along with reduced lifecycles –

have put margins in the chemical industry

under severe pressure.

Securing margins requires market and

customer segmentation, streamlined sales

operations, and managing prices and margins

along all sales channels – from pipeline

planning to order fulfillment.

Securing margins also requires real-time visibility

into overall sales performance and profitability,

by customer or product.

In addition, CEOs recognize that first-rate,

segmented services provide an excellent

approach to enhance customer profitability and

loyalty, increase share of wallet, and ultimately

differentiate them from the competition. 17% Higher percentage of field

sales achieving quota when

sales pipeline is optimized for

cross and add-on opportunities

to be proactively pursued


Benchmarking

Priorities

Sales and Marketing

SAP Solutions

Executive

Summary


SAP Solutions


© 2013 SAP AG 15 / 40

Benefits

Increase margins

Reduce costs to serve

Increase pipeline

Enhance customer retention

Improve share of wallet


Lower average sales cycle

length where organizations

have high maturity in

quotation and order-

management processes


Benchmarking

Actively manage and enhance the value of your customer portfolio, improve

share of wallet with customers, and secure sustainable margins.

Bring visibility into product and service costs along the price waterfall. Use customer,

product, and channel segmentation strategies to drive sustainable margins.

Price and Margin

Management

Improve revenue and profitability through better pricing decisions and

implementation of pricing policies across all organizations and channels.

Order and Contract

Management

Help ensure flawless order processing and billing, through alignment of terms

and conditions of orders with contracts – along all sales channels.

Customer Service and

Support

Enable the service organization to implement an integrated service process,

which will enhance productivity while increasing customer loyalty.

39%

Executive

Summary


SAP Solutions

Priorities

Sales and Marketing

SAP Solutions


© 2013 SAP AG 16 / 40

Talent is a true competitive advantage today and

is critical when aligning business strategy and execution.

Best-run organizations achieve profitable growth by

leveraging their talent and out-innovating the competition.

People and Talent

For organizational growth and an agile

response to business change, organizations

must give people the knowledge and

technology needed to facilitate innovation.

They must also move into new markets,

adapting to local practices and tapping the

right local talent.

In addition, they must identify and retain

new talent acquired through mergers and

acquisitions.

Organizations that quickly respond with the

right talent in the right places will have a unique

advantage in the marketplace.

8% Higher employee engagement

gained from implementing

training programs that develop

the workforce in line with

organizational objectives


Benchmarking

Priorities

People and Talent

SAP Solutions

Executive

Summary


SAP Solutions


© 2013 SAP AG 17 / 40

Benefits

Improve productivity and engagement

Gain real-time insight into business needs

Align people to business strategies

Support global expansion into new markets

People and Talent

Lower time to hire in large

organizations where recruiting

system automates candidate

administration


Benchmarking

The new world of work.

Enable growth and sustainability by providing choice in the delivery of HR processes

and services. Increase value, employee satisfaction, and business performance.

Core Human Resources

and Payroll

Consolidate HR and payroll processes on a common global platform for better

workforce data and legal compliance.

Talent Management Improve strategic alignment, increase productivity, and accelerate results by

identifying, developing, motivating, and retaining talent.

Time and Attendance

Management

Streamline time-management processes to enhance resource effectiveness

and visibility into and control over labor costs.

Workforce Planning and

Analytics

Identify and analyze talent gaps and streamline workforce planning for efficient

and effective management of workforce demand and supply. 16%

Executive

Summary


SAP Solutions

Priorities

People and Talent

SAP Solutions


© 2013 SAP AG 18 / 40

CFOs implement best practices to help them strike the

right balances between sound stewardship and value

creation, entrepreneurship and caution, and the big

picture and exacting detail.

Finance

Financial organizations are struggling to

achieve excellence in one of the most difficult

and volatile economies in modern history.

Persistent challenges include ongoing market

instability, ever-changing regulations, and

creeping pressure on margins. As the speed

of finance increases, so does the need for

financial insight on the go – anytime, anyplace.

In the office, financial executives must find

ways to cut costs while strategically

demonstrating the value of the financial

organization to the larger company.

More than ever, financial organizations need

to employ best practices to help them achieve

excellence. With the right solutions for finance,

organizations can achieve excellence where

it really counts – from streamlined regulatory

compliance and effective risk management,

to outperforming financial objectives, creating

sustainable value, and delivering superior

service. 34% Higher operating margin for

organizations where the cost

accounting system supports

cost analysis along multiple

dimensions


Benchmarking

Priorities

Finance

SAP Solutions

Executive

Summary


SAP Solutions


© 2013 SAP AG 19 / 40

Financial Performance

Management

Manage financial performance to execute organizational strategies and control

costs.

Accounting and Financial

Close Help ensure a fast, accurate, and compliant close with less cost and effort.

Treasury and Financial

Risk Management

Gain greater insight and control over complex processes for managing cash,

liquidity, and risk.

Collaborative Finance

Operations

Automate transactional processes for increased efficiency, effectiveness,

collaboration, and service with lower cost.

Enterprise Risk and

Compliance Management

Manage risk and compliance to protect revenue and optimize financial performance.

Benefits

Promote compliance and mitigate risk

Exceed targets and create sustained value

Finance

Lower cycle time for forecast in

organizations with access to a

financial cockpit providing a

timely view into a predefined

set of key metrics


Benchmarking

Despite sustained market volatility and greater demand for regulatory

compliance, financial organizations are excelling through best practices.

Organizations that have a 360-degree view of finance processes enable their people

to collaborate more efficiently and use business insight more effectively.

24%

Executive

Summary


SAP Solutions

Priorities

Finance

SAP Solutions

Deliver superior service at reduced cost


© 2013 SAP AG 20 / 40

While companies often focus on revenue, procurement

savings can increase profits about five times more.

The key to maximizing procurement’s success in cost

performance is to deliver consistent quality, savings,

and compliance over time.

Procurement

Procurement leaders set a baseline for success

by implementing best practices, excelling

in category expertise, and working with key

stakeholders on cost-control programs.

While savings are always a priority, new

objectives have emerged as well. Procurement

must manage supplier risk and performance,

improve process efficiency, drive innovation,

and drive sustainability best practices.

Procurement teams need solutions that help

them cut costs as well as add value. Solutions

that support processes like spend analysis,

sourcing, contract management, operational

procurement, supplier information management,

and risk and performance management must be

available both on-premise and in the cloud.

When coupled with an unparalleled business

network, these solutions drive the kind of real-

time insight and efficiency that’s possible only

through close collaboration with key

stakeholders in the network.

40% Higher average annual savings

(direct) in organizations that

operate a single, integrated

procurement system


Benchmarking

Priorities

Procurement

SAP Solutions

Executive

Summary


SAP Solutions


© 2013 SAP AG 21 / 40

Supplier Discovery and

Lifecycle Management

Find new suppliers through solutions by Ariba, an SAP company, and manage

them using supplier relationship management solutions.

Strategic Sourcing and

Contracting Identify and act on sourcing opportunities and create low-risk supply contracts.

Procurement and Order

Collaboration

Realize savings with compliant, user-friendly self-service procurement.

Collaborating on the Ariba Network makes transactions more efficient.

Collaborative Invoice

to Pay

Drive invoice automation and exception management with available dynamic

discounting on the Ariba Network.

Commodity Management Purchase commodities based on quotes from exchanges, automate price

calculations, and streamline invoicing to preserve margins.

Benefits

Optimize spend under management

Increase average annual savings

Decrease FTE per billion in spend

Procurement

Lower maverick spend (indirect)

in companies where system

monitors purchasing and provides

an analysis of compliance-related

purchasing activities


Benchmarking

Drive sustainable savings while supporting innovation.

Drive best practices in the source-to-pay process, on-premise or in the cloud,

while leveraging the power of network collaboration for efficiency and insights.

40%

Drive innovation with suppliers

Reduce cost and risk with faster turnaround

Base commodity contracts on market conditions

Executive

Summary


SAP Solutions

Priorities

Procurement

SAP Solutions


© 2013 SAP AG 22 / 40

Businesses enterprises should forge strategic business

partnerships with their IT organizations by aligning goals.

And business-oriented IT should maximize efficiency and

responsiveness by running IT like a business.

IT Management

Research shows that lines of business want

to ascertain the value of their IT investments,

which means that IT organizations no longer

decide alone which IT projects to fund.

The challenge is that IT management is often

seen as just running the technical landscape.

To become more relevant to an enterprise, IT

needs to reposition itself to run like a business.

SAP offers an integrated portfolio of solutions

to do just that. New technologies like mobile,

in-memory, and cloud computing generate

value to a business in an unprecedented way.

However, these new technologies also make IT

landscapes more complex, requiring more tools

to manage them. By leveraging SAP solutions –

along with following best practices – CIOs,

CEOs, other executives, management, and

employees can tap into and help ensure

efficiency, continuity, and responsiveness,

making IT more strategic to the business. 37% Higher percentage of profitable

IT projects for organizations

where IT is included early in

the prioritization process


Benchmarking

Priorities

IT Management

SAP Solutions

Executive

Summary


SAP Solutions


© 2013 SAP AG 23 / 40

Application Lifecycle

Management

Use application lifecycle management best practices, methods, and services based

on Information Technology Infrastructure Library (ITIL).

IT Infrastructure

Management Monitor all network assets to integrate infrastructure and application lifecycles.

IT Portfolio and Project

Management Manage projects and align the portfolio to drive innovation efficiency.

IT Service Management Align service-desk operations with service-level agreements (SLAs), resolve SLA

incidents fast, and adopt ITIL best practices to meet evolving business goals.

IT Strategy and

Governance Track IT costs and risks and map risk and compliance activities to business impact.

Benefits

Better alignment of IT to business strategy

Shorter IT delivery and business cycles

Maximize return on IT

IT Management

Evaluate and control risk, enable flexibility and scale, control and optimize

costs, and maximize strategic value.

Promote business continuity, drive efficiency, increase IT responsiveness to business

objectives – with IT management solutions designed for any sized business.

Reduced system upgrade and operation costs

Lower risk mitigation cost and revenue loss

Lower critical business system downtime

1.9x More projects delivered

on or below budget by IT

management top performers


Benchmarking

Executive

Summary


SAP Solutions

Priorities

IT Management

SAP Solutions


© 2013 SAP AG 24 / 40

Technology innovations transform companies. They can

run in real time to improve information value, deliver new

developer and user experiences, and unwire the business

to innovate customer, partner, and employee

engagement.


As users become savvier and their needs

escalate, they expect real-time insight, using

predictive analysis and real-time access to

applications from the latest mobile devices.

They expect all of these functionalities to be

smoothly integrated with their favorite social

platforms.

While this savvy user base is expected to grow

quickly, company data volumes are exploding.

So now is the time to empower users with

timely information delivered by an entirely new

class of real-time applications and empower

developers with a platform that delivers

innovation faster than ever before.

Technology solutions can mean the difference

between surviving and thriving, and, with

innovative technology, companies can thrive.

They can enable the real-time enterprise to

improve information value, empower users and

developers, and unwire the business to innovate

customer, partner, and employee collaboration.

Priorities


SAP Solutions

Executive

Summary


SAP Solutions

“Cloud, social networking,

mobility and the strategic use

of information are the four

forces that combine to create

a new era of computing and

new opportunities for

business.”

Source: Gartner, “SAP Is Driving

Analytics, Cloud and Mobility in the

Nexus of Forces,” Donald Feinberg,

August 24, 2012

4

© 2013 SAP AG 25 / 40

Analytics Optimize decision making, execution, and risk management with real-time,

predictive analytics.

Data Management Manage data with scalability, trust, and unmatched availability enterprise-wide.

Application Development

and Integration

Develop applications and innovation rapidly in a mobile, always-on world of

collaborative business networks for secure, cloud-scale applications.

Enterprise Mobility Unwire employees, customers, and partners with proven mobile solutions

Consumer Experience Boost productivity and competitiveness with real-time, innovative consumer

applications.

SAP HANA Platform Use in-memory technology to improve applications, planning, and predictive and

sentiment analysis.

Benefits

Operate your business in real time

Reduce time to value and speed up

innovation


Technologies to drive change and help your business thrive.

SAP solutions enable the real-time enterprise, empower new experiences,

and unwire the business.

Turn data into an enterprise asset

Unwire the business to innovate engagement

Executive

Summary


SAP Solutions

Priorities


SAP Solutions

“Through 2015, organizations

integrating high-value,

diverse, new information

types and sources into a

coherent information manage-

ment infrastructure will out-

perform their industry peers

financially by more than 20%.”

Source: Gartner, “Hype Cycle for

Information Infrastructure, 2012,”

Michael Blechar, July 31, 2012

20%

© 2013 SAP AG 26 / 40

In-memory computing powered by the SAP HANA platform allows you to maximize asset

performance and utilization by mining, consolidating, and analyzing plant and asset data.

Respond rapidly to changing demand and supply patterns by analyzing multiple what-if scenarios

during sales and operations planning meetings. Quickly assess impacts on products and revenue

triggered by changes in regional or local regulations.

Mobile technology helps you drive efficiency and safety across your plant operations and

maintenance activities. Track and trace the status of shipments including quality parameters of

shipped products, and speed up sales cycles by providing instant information to sales reps when

it’s needed.

Analytics help you gain real-time insight into the performance of your manufacturing plants via

preconfigured dashboards. Immediately gain visibility and respond to unexpected supply chain

events, and assess the overall status and adherence to REACH regulations and other compliance

programs.

Cloud-based solutions help you gain operational continuity, so you can secure revenue streams

and brand reputation and minimize noncompliance risk.

The opportunities for chemical companies to transform

business models and position for sustainable growth

have never been better. New technologies like in-memory

computing, mobile technology, and cloud deployment

can speed decision making and business execution.

SAP Innovations

53% Of organizations report a big

gap between the availability

of Big Data and their ability

to analyze it for insights


Benchmarking

Applications

SAP Innovations

SAP HANA

Mobile

Executive

Summary


Analytics

Cloud


© 2013 SAP AG 27 / 40

Manufacturing Performance and Asset Utilization

SAP Business Suite powered by SAP HANA simplifies mining, analysis, and federation of asset and

maintenance data to drive continuous improvement and operational excellence. You can boost asset

performance and operational continuity by enabling advanced maintenance planning strategies.


SAP Business Suite powered by SAP HANA enables real-time decision making on market opportunities,

capacity and demand fluctuations, and supply-chain interruptions. You can simplify IT

by combining analytics and transactions for reduced total cost of ownership.


SAP Business Suite powered by SAP HANA provides real-time customer and product profitability

insights into the hands of sales personnel to help drive more profitable revenue streams from the start.

With customer, product, and asset-related data available to sales and field representatives at their point

of need, your workforce is immediately more productive. And the solution can help you transform from

your business-to-business oriented sales and service processes to a more business-to-consumer model.

SAP Business Suite software is powered by SAP HANA

and allows you to boost competitiveness by unlocking

new growth opportunities. In addition you can boost

responsiveness by driving business at the speed of the

market, and boost productivity by empowering people to

decide and act in the business moment.

SAP Business Suite Powered by SAP HANA

Executive

Summary


Applications

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

© 2013 SAP AG 28 / 40

In-memory computing solutions from SAP, powered by the SAP HANA platform, can help you

make intelligent decisions at every level and across every business process. By speeding up

analysis of your Big Data – requiring only seconds as opposed to days – you can complete order

fulfillment faster and cheaper or optimize supply chain operations in real time.

By rapidly processing the huge volumes of data stored in your plant-floor and maintenance

systems, SAP in-memory computing technology can help you enhance the safety, availability,

and performance of your manufacturing operations.

You can intelligently automate the myriad compliance and reporting requirements required for

every substance in every product and rapidly respond to the different compliance and reporting

needs of new markets and segments.

With the ability to run complex simulations using live transaction data the second it’s created,

SAP solutions powered by SAP HANA can help you improve margins. You can instantly simulate

the impact of raw material price changes on customer or product profitability or improve financial

performance monitoring with faster, more granular financial consolidation and reporting.

Chemical companies must consolidate and analyze

huge data volumes from multinational supply chains,

business units, and plants. With increasing regulatory

requirements, rapidly changing customer demands, and

mass customization, gaining real-time insight into your

Big Data is crucial.

SAP HANA

40% Greater ability to utilize Big

Data to gain insights with

a well-established analytics

and data-modeling center

of excellence


Benchmarking

Executive

Summary


Applications

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud


© 2013 SAP AG 29 / 40

In manufacturing, you can enhance safety and productivity in the plant with instant information

about assets, operations, and risks – ultimately supporting operational continuity and performance.

Enterprise mobility helps you mitigate supply chain disruptions by accurately and instantly tracking,

tracing, and authenticating goods and shipments, including their physical conditions, and you can

initiate corrective actions in case of unexpected events.

In warehouse operations, enterprise mobility helps ensure optimal use of resources by providing

real-time visibility into product, storage, and task information at the point of work.

Delivering real-time, targeted, personalized product and service information anytime, anywhere,

mobile technology helps you bring customers closer, build loyalty, and boost sales.

Chemical companies must adapt to a changing world and

bring enterprise mobility to business with solutions to

transform their value chains. Enterprise mobility can help

integrate new operations, mitigate supply chain risks,

prevent incidents, and redefine collaboration with partners

and customers.

Mobile

40% Higher employee productivity

where mobile access is

provided to employees

across all levels


Benchmarking

Executive

Summary


Applications

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud


© 2013 SAP AG 30 / 40

Analytics solutions from SAP – with live dashboard-driven performance metrics – can provide

manufacturing planners and plant operators with the real-time insight they need to optimize

everything from asset and plant performance to batch manufacturing.

Your operations teams can sharpen your competitive advantage by bringing new speed and agility to

your global supply chain. They can analyze and drill down on critical data anywhere along your

supply chain and respond rapidly to unexpected events, develop contingency plans, and mitigate the

risk of supply chain disruptions.

You can further reduce the risks inherent in new product rollouts. Whether it’s the risk of regulatory

noncompliance or a ramp-up delay, analytics solutions from SAP can help product development

specialists conduct data-driven analysis of the status and performance of products under REACH

regulations and other compliance programs.

The software can also help your sales and other executives manage the business – and improve

profitability – on a daily basis by making product-mix decisions that maximize revenue and margins.

In today’s dynamic business environment, analytics are

pivotal to support real-time, enterprise-wide business

agility. Opportunities must be proactively balanced against

risks, and, to maximize profitability, all employees need to

understand the financial impacts of their decisions before

they act.

Analytics

53% More employees leveraging

analytical information from

BI systems providing access to

advanced analysis tools without

requiring technical expertise


Benchmarking

Executive

Summary


Applications

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud


© 2013 SAP AG 31 / 40

Cloud solutions from SAP can help you tap into growth opportunities in emerging markets.

You can bring plant employees up to speed quickly, while still enabling safe operations and cost

control. Newly acquired subsidiaries and contract manufacturers can be ramped up quickly,

thanks to customized solutions that are preassembled and ready for deployment in the cloud.

You can integrate and collaborate with your entire global supply, production, and customer network

to control costs and speed execution.

And you can maintain strict and centralized control of all of your compliance activities. You can

proactively manage regulatory content, permits, and legally prescribed emission thresholds across

the entire organization in a cost-efficient way.

SAP software also provides preconfigured sustainability reports, following Global Reporting

Initiative standards, to increase universally recognized brand and stakeholder recognition.

The speed and flexibility offered by cloud computing

is creating new opportunities for best-run chemical

companies. Cloud applications from SAP and the open

SAP HANA application cloud allow companies to build

differentiating solutions at the point of engagement –

establishing nimble global business networks or

connecting faster and more directly with customers.

Cloud

85% Believe cloud computing

will have a major impact on

their organization, through

efficiencies, innovation, or

competitive differentiation


Benchmarking

Executive

Summary


Applications

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud


© 2013 SAP AG 32 / 40

Ten of the top 10 and 97 of the top 100 chemical companies run SAP.

Best-Run Customers

Executive

Summary


Best-Run Customers

Air Products

Braskem

Perstorp

Why SAP?

Novus

© 2013 SAP AG 33 / 40

SAP co-innovates with leading chemical companies through the Chemical

Executive Advisory Council to constantly deliver new enhancements across the

value chain: from product safety and stewardship to supply chain planning and

execution.

Customer Co-Innovation

Chemical Executive Advisory Council

CIOs of top chemical companies share innovation, technology requirements, and best practices

to succeed in a more volatile, complex market.

Co-innovation partners

Consulting and system integration partners.

Value added resellers for supply chain optimization, price and margin management, enterprise

content management, and the like.

Executive

Summary


Best-Run Customers

Air Products

Braskem

Perstorp

Why SAP?

Novus

© 2013 SAP AG 34 / 40

“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

As a leading supplier of gases, chemicals, equipment, and

services, Air Products serves a wide range of customers in

industry segments including food and beverage, health and

personal care, and transportation.

To sustain business growth, it needed an integrated mobile solution

to handle field data. The SAP Afaria mobile device management solution

helped the European healthcare division of Air Products boost field

productivity and better meet customer and patient needs.

Key Benefits

Better service through dependable data and a comprehensive

view of the patient situation

Improved logistics distribution and reduced paperwork

Reduced system maintenance costs by replacing legacy system

Minimized costs by using a train-the-trainer approach and

central team

50% Decreased document processing time

50% Decreased lost assets

5% Increased employee productivity (in product traceability)

Executive

Summary


Best-Run Customers

Air Products

Braskem

Perstorp

Why SAP?

Novus

© 2013 SAP AG 35 / 40

“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

Braskem was created by the merger of several Brazilian

petrochemical firms. It provides products and Services

around thermoplastic resin and green polyethylene, produced

from sugar cane instead of oil derivatives.

Braskem optimized supply chain processes, increased sales forecast

accuracy, and reduced costs for its vinyl business after implementing the

global availability to promise functionality (GATP) in the SAP Advanced

Planning & Optimization component.

Key Benefits

Increased the accuracy of sales forecasts through better inventory

management

Boosted customer satisfaction through faster fulfillment of orders

Reduced costs in logistics and supply chain management

90% Reduction in inefficiency-related logistics costs

18% Increase in sales forecast accuracy

$3 million Value generated in first year after implementation

Executive

Summary


Best-Run Customers

Air Products

Braskem

Perstorp

Why SAP?

Novus

© 2013 SAP AG 36 / 40

“The ultimate way to create value is to identify and deliver key initiatives

that improve corporate performance by improving the performance of

our KPIs. 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.

Novus International is a global leader in developing

animal health and nutrition solutions for livestock,

poultry, companion animals, aquaculture, and people.

Novus chose SAP to get visibility into operational, financial, and

enterprise performance metrics to drive corporate goals and improve

business processes via the SAP Supply Chain Performance

Management analytic application. Sixteen key performance indicators

are tracked to improve organic growth, product profitability, resource

efficiency, and customer satisfaction while managing working capital.

Key Benefits

Standardized business processes and improved performance, globally

Higher customer satisfaction from fewer supply chain bottlenecks

Fewer stock-outs and greater liquidity to optimize inventory level

Greater Flexibility in building key performance indicators (KPIs) for enterprise-wide performance management

Improved Decision making via faster access to clear performance metrics

Better Ability to manage operations and take timely, proactive actions

Executive

Summary


Best-Run Customers

Air Products

Braskem

Perstorp

Why SAP?

Novus

http://www.novusint.com/

© 2013 SAP AG 37 / 40

“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

Perstorp Group manufactures, imports, and uses specialty

chemicals in coatings, aerospace, marine, engineering, and

construction industry applications.

Recently spun off as an independent subsidiary of Rhodia, Perstorp was

still using the SAP ERP application of its parent corporation. Company

executives viewed the REACH mandate as an opportunity to not only

support compliance requirements but also to gain autonomy, build a

centralized compliance solution, and improve communications with

clients and suppliers.

Key Benefits

Automated collection, processing, and assessment of compliance data

Reduced time needed to update safety data sheets and exposure

scenarios

Improved product stewardship by enhancing data integrity

75% Reduction in IT operation costs

10% Productivity gain in REACH-related tasks

100% Avoidance of compliance-related trial costs

Executive

Summary


Best-Run Customers

Air Products

Braskem

Perstorp

Why SAP?

Novus

© 2013 SAP AG 38 / 40

SAP for Chemicals solutions enable sustainable growth through safely optimizing

asset performance, enabling reliable and profitable order fulfillment, and driving

superior returns on product innovation. The solutions can be deployed flexibly, are

highly scalable at low cost, and can be accessed anytime from anywhere,

leveraging the latest technology innovations.

Tightly Integrated Business Solutions

SAP offers the most comprehensive portfolio of solutions for the chemical industry, enabling

companies to focus their key business processes and activities in their extended network: on

assets, operations, and customer-driven product innovation.

Leveraging Key Breakthrough Innovations

SAP solutions are based on the industry’s most innovative technologies, including the

SAP HANA platform and mobile, analytics, and cloud solutions for optimized, more efficient

business processes at the lowest possible cost.

40 Years of Delivering Value to the Industry

The world’s leading chemical firms, across every major segment of the industry worldwide, rely on

SAP solutions to drive sustainable growth, profitability, and value to their customers.

Why SAP?

Executive

Summary


Best-Run Customers

Air Products

Braskem

Perstorp

Why SAP?

Novus

© 2013 SAP AG 39 / 40

Benchmark Your Performance

Position your organization for dominance in this new economy with the business performance

benchmarking program from SAP – available free to SAP customers and select prospects. The

SAP benchmarking program has helped more than 3,000 organizations assess their strengths,

uncover areas for improvement, and identify best practices and IT strategies that generate clear,

tangible value – not someday, but today.

Go Live in Weeks

Here’s the fastest way to run your business better: our rapid-deployment solutions. In one

package, you get everything you need to be up and running quickly – including preconfigured

software and implementation services – in just weeks. With a defined scope and predictable costs,

there are no surprises.

Join Your Community of Practices

Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work. It

lets members help one another solve problems, learn, and invent new ways to get things done –

faster. Find out how to connect with people, content, and resources.

Find Out More About How Your Organization Can

Become Best-Run

Visit valuemanagement.sap.com >>

Visit sap.com/solutions/rds >>

Visit scn.sap.com >>

Executive

Summary


https://websmp105.sap-ag.de/solutionpackages

https://valuemanagement.sap.com/

http://www1.sap.com/solutions/rds

http://www.sdn.sap.com/irj/scn

Industry Executive Overview

Chemicals

SAP for Chemicals

http://www54.sap.com/industries/chemicals.html

https://twitter.com/SAP4chemicals

http://scn.sap.com/community/chemicals

http://www.youtube.com/user/SAPCommunities

https://www.facebook.com/SapForChemicals

© 2013 SAP AG

CMP 23283 (13/02)

Executive

Summary


http://www54.sap.com/industries/chemicals.html

https://twitter.com/SAP4chemicals

http://scn.sap.com/community/chemicals

http://www.youtube.com/user/SAPCommunities

https://www.facebook.com/SapForChemicals

© 2013 SAP AG. 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 AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other

software vendors. National product specifications may vary.

These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only,

without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to

the materials. The only warranties for SAP Group 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.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered

trademarks of SAP AG in Germany and other countries.

Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information

and notices.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise

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