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Financial Analyst and Investor Program CeBIT March 20, 2017
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Page 1: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

Financial Analyst and Investor ProgramCeBITMarch 20, 2017

Page 2: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

2© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Agenda

12:00 p.m. Welcome Stefan Gruber, Head of Investor Relations Convention CenterRoom 108-110

12:10 – 1:10 p.m. SAP’s Digital Transformation Framework Leveraging the full potential of SAP S/4HANA

Sven Denecken, Senior Vice President, Product Management and Co-Innovation SAP S/4HANA

Convention CenterRoom 108-110

1:10 – 1:40 p.m. Lunch break

1:40 – 2:40 p.m. SAP Leonardo for IoTConnecting things with people and processes

Nils Herzberg, Senior Vice President, Global Head Internet of Things, Go-to-Market and Partnerships

Convention CenterRoom 108-110

2:40 – 3:40 p.m. SAP CleaSolving real business problems with more intelligent applications

Dr. Markus Noga, Vice President Machine Learning, Innovation Center Network

Convention CenterRoom 108-110

4:15 p.m. Guided Tour Experience our exhibition and see product demonstrations – guided by Rolf Schumann, Senior Vice President, Global General Manager Platform and Innovation, SAP Cloud Platform

The tour will take a good hour.

SAP Stand, Hall 4

Page 3: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

3© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

Safe Harbor Statement

Page 4: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

SAP’s Digital Transformation FrameworkLeveraging the full potential of SAP S/4HANASven Denecken, Senior Vice President, Product Management and Co-Innovation SAP S/4HANA, SAP SEMarch 20,2017

Page 5: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

5© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Extreme Variability Rapid InnovationIndividualization

Challenges from the market today

Page 6: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

6© 2017 SAP SE or an SAP affiliate company. All rights reserved.

So what does it take to win in the digital era?

© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Page 7: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

Business models

Products Businessprocesses

Work

© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Reimagine

Page 8: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

Reimagining products

© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Page 9: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

9© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Reimagining business processes

© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Page 10: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

10© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Service promiseAbility to deliverEnd-to-end experience

The end-to-end digitized enterprise as unavoidable consequence

Unit of one

[#/€]

TimeDigital economy

Numberof items, lots

Value, size of items, lots

Why digitize the core?

Unit of oneEnd2End

Experience is the New Product

Page 11: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

11© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Digital Business Framework 2.0

Page 12: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

12© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Strategic product directions for 2017

Data Foundation

Mode 1 Mode 2

Business Intelligence

Intelligently connect people, things, and businesses

Differentiate Businesses

Hyper-automate business processes

Run Businesses

Deliver insights to drive strategic decisions

Steer Businesses

Embrace DataOrchestrate data of any volume, velocity, and variety

Page 13: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

13© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Fiori

SAP HANA SAP HANA SAP VoraS3 � SWIFT � Hadoop

SAP S/4HANA SAPBW/4HANA

BusinessObject Cloud & Digital

Boardroom

SecurityServices

IntegrationServices

AnalyticsServices

MobileServices

IoT Services

Collaboration Services

Machine LearningServices

UXServices

SAP Cloud Platform Integration

SAP Cloud Applications

Customer Specific and 3rd Party

Applications

API Business HubMarketplace

Business Services

SAP Cloud Platform

SAP’s Modular Suite

Page 14: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

14© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Example Complete conversion of an existing SAP Business Suite system to SAP S/4HANA

Example Consolidation of current regional SAP Business Suite landscape into one global SAP S/4HANA system or selective data migration

Example:New or existing SAP customer implementing a new SAP S/4HANA system with initial data load

System Conversion

ERP System

SAP S/4HANA the 3 transition scenarios

Landscape Transformation

ERP System - Region A -

ERP System - Region B -

ERP System - Region C -

New Implementation

ERP System

Non-SAP System SAP S/4HANA

Cloud Edition

SAP S/4HANAOn-premise Edition

SAP S/4HANACloud Edition

SAP S/4HANAOn-premise Edition

SAP S/4HANAOn-premise Edition

Page 15: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

15© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Landscape Transformation

SAP Activate the innovation adoption framework for SAP S/4HANA

New Implementation

SAP Best Practices

Guided Configuration

Methodology

Business Value● Faster, less service intensive initial

implementation in the cloud or on-premise

● Rapid adoption of innovations throughout the entire product lifecycle

● Extensible framework for partners

Accelerated Time-to-Value(initial and ongoing)

Reduced Total-Cost-of-Ownership(over total lifecycle cloud and on-premise)

System Conversion

System Conversion

Landscape Transformation

SAP S/4HANACloud Edition

Page 16: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

16© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Siam City Cement one-day month-end close shows the simplification achievable with SAP® S/4HANA

Company The Siam City CementPublic Company Limited(Siam City Cement)

Headquarters Bangkok, Thailand

IndustryMill products

Products and ServicesConstruction materials and services

Employees4,000

Web Site www.siamcitycement.com

PartnerAccenturewww.accenture.com

Objectives� Simplify the business� Expand both geographically and in solutions offered� Attain differentiation in a competitive commodity industry

Why SAP� Long-time user of SAP® software� Ability to power digital transformation with the SAP HANA® platform

Resolution� Formed a digital transformation strategy� Adopted a suite of SAP applications based on SAP S/4HANA software� Used Accenture and SAP MaxAttention™ services for implementation

Benefits� Made financial planning more insightful, data-driven, and analytic� Boosted customer satisfaction� Achieved simplification and better communication internally and externally

1 dayMonth-end close, down from 2 days and 1 night

Up to 7xAcceleration of financial processes

300 msDatabase response time service-level agreement, down from 1200 ms

“The huge benefit of SAP S/4HANA is that we’re connecting our entire ecosystem of internal departments, customers, partners, and end users and generating so many opportunities forall of them. ”

Ittaya Sirivasukarn, CEO, INSEE Digital, the IT subsidiary of the Siam City Cement Public Company Limited

Page 17: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

17© 2017 SAP SE or an SAP affiliate company. All rights reserved.

WEIG Group creating new business models with SAP S/4HANA®

BetterDecision making and market penetration through real-time access to key data and reports

IncreasedUser productivity and satisfaction through an enhanced mobile user experience

LaunchedPlatform to integrate customers and business partners into the company’s value chain at all levels – from the order process to manufacturing

“The close partnership and focused execution through SAP Value Assurance service packages for SAP S/4HANA helped speed our implementation for a successful go-live. With SAP S/4HANA, employees have more analytical insight into daily tasks, helping better penetrate the market. And we have the foundation to integrate customersand partners into our business processes.”

Ralf Schnackerz, CIO, WEIG Group

CompanyWEIG Group

HeadquartersMayen, Germany

IndustryMill products

Products and ServicesPaper, cartonboard and folding carton products, packaging, and recycling

Employees1,500

Revenue>€500 million

Web Sitewww.weig.de/en

PartnerSAP® Digital Business Services

Objectives• Evolve from a product-centric industrial enterprise to a platform provider offering customer-specific products • Accelerate decision making with real-time business data insights • Integrate customers and partners in real time in an easy and simple way

Why SAP• SAP S/4HANA® as the only IT platform to enable the digital transformation • Quick and secure path to innovation with SAP Value Assurance service packages for SAP S/4HANA from

SAP Digital Business Services

Resolution• Performed system conversion from the SAP ERP application to SAP S/4HANA using the Software Update Manager tool• In a first step, went live with financials, materials management, and procurement; and in a second step, upgraded to

SAP S/4HANA 1610 to include new cash management, sales and distribution, plant maintenance, project systems, and environment, health, and safety – being the first productive customer worldwide on that release

• Migrated the SAP Business Warehouse application to SAP HANA® platform • Deployed SAP S/4HANA in a virtualized environment • Completed the entire project on time and within budget – in only 5 months

Future plans• Deploy SAP Fiori® apps to enable customer self-services • Replace third-party ERP software with SAP S/4HANA • Launch IoT-based predictive maintenance and quality scenarios

Page 18: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

18© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Customers have new business needs New Digital Business framework

More businesses are tapping into the Cloud …

The cloud ERP market is ready…

Significant opportunity for growth in Public Cloud ERP à Major investment by SAP to develop and prioritize its digital core with SAP S/4HANA Cloud

Innovate and evolve quickly

Understand what’s happening in their business right now

Act on that insight in real time

Digital economy must adjust to these needs

Accelerated innovation

Flexible and extensible platform

Real time information

Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT Industry 2017 Predictions – Nov. 2016. 3. IDC Futurescape: WW Intelligent ERP 2017 Predictions – Nov. 2016.

Business process

Business intelligence

$20BCloud ERP market in 2015 expected to grow at 15% up to $40B in 20201

c.70%Enterprise IT infrastructure and software spending will be for cloud by 20202

60%ERP applications in public cloud by 2020 for 40% of large organizations3

Page 19: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

19© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP S/4HANA Cloud two-tier ERP

HeadquartersCor

pora

teTi

er O

neSA

P C

loud

Ecos

yste

m

SAP BusinessObjectsPlanning and Consolidation

SAP CentralFinance

Employee Central

Procurement andStrategic Sourcing

Omni-channel Customer Engagement

HANA CLOUD PLATFORM

SAP HANA CloudPlatform Apps

External Workforce Management

Travel and Expense Management

Digital Core

SAP S/4HANAProfessional Services Cloud

SAP S/4HANAMarketing Cloud

SAP S/4HANAEnterprise Management Cloud

SAP S/4HANAFinance Cloud

Local Office

Subs

idia

ries

Tier

Tw

o

Subsidiaries Local OfficesFinance Departments

Local Office

SAP Hybris Commerce

Page 20: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

20© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Two-tier ERP manufacturing example

Global HRSAP BusinessObjectsPlanning and Consolidation

SAP CentralFinanceHeadquarter

Cor

pora

teTi

er O

ne

Digital Core

Subs

idia

ries

Tier

Tw

o

Local Production Unit

Local Inventory

Subsidiary- Manufacturing Plant -

Local Finance

SAP S/4HANAEnterprise Management Cloud

Procurement andStrategic Sourcing

SAP S/4HANAMarketing Cloud

Local Marketing

This is the current state of planning and may be changed by SAP at any time without notice

Page 21: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

21© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Machine Learning in SAP S/4HANA todayExample: Invoice Matching

ü Significantly increase automatic matching ratesü Provide matching suggestions

Planned DirectionSituation Awareness

Situations pro-actively display issues requiring attention and automaticallyprovide related information (embedded analytics) and actions in one place

ü Learning from choices of the users the system improves its suggestions and finally automates the process

Automation is key to digital business modelsSituation awareness & machine learning in SAP S/4HANA

Page 22: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

22© 2017 SAP SE or an SAP affiliate company. All rights reserved.

ObjectiveEquip subsidiaries with a low-cost, scalable Enterprise Management platform to drive consistent supply chain management across the organization

Why SAP?• Prescriptive solution drives process standardization

• Accounting, Finance, Sales, Sourcing, Procurement and Supply Chain unified on a single cloud solution

• Rapid deployment with minimal configuration

Expected benefits• Unified two-tier ERP strategy for corporate

and subsidiaries

• Real-time view of the business

• Ability to support future growth with low TCO

“We had more than 26 supply chains across our company. We looked at S/4HANA®

Cloud as an opportunity to free up capacity inIT, to rationalize our environment.”

CIO, Information Technology 10B+Annual Revenue

$

Profile: U.S. manufacturer with global operations

The future of the connected company a case study

Page 23: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

23© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Direct access to single source of truth

Simulation capability(what-if analysis)

Easy to set up agenda

Redefine real time with a Digital Boardroom not only boardroom

Page 24: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

24© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Start at http://www.sap.com/s4hana for more information

Try SAP S/4HANA

Detailed SAP S/4HANAroad maps

Top questionsand answers

How to get there … Your path to SAP S/4HANA

Page 25: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

SAP’s Digital Transformation FrameworkLeveraging the full potential of SAP S/4HANASven Denecken, Senior Vice President, Product Management and Co-Innovation SAP S/4HANA, SAP SEMarch 20,2017

Page 26: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

Nils Herzberg, Senior Vice President, Global Head Internet of Things, Go-to-Market and Partnerships, SAP SEMarch 20, 2017

SAP Leonardo for IoTConnecting things with people and processes

Page 27: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

27© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Cloud is the digital business platform

SAP HANA SAP Cloud Platform

IoT& Supply Chain

Page 28: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

28© 2017 SAP SE or an SAP affiliate company. All rights reserved.

IoT is a HUGE opportunity for SAP

People

Processes

ThingsAsset Networks

Products as a Service

Business Process InnovationNew Business Models

Employee EfficiencyAugmented Intelligence

Business Value

Page 29: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

29© 2017 SAP SE or an SAP affiliate company. All rights reserved.

‘Better outcomes’ the real reason for IoT projects

Optimized productivity

Improved turnaroundsLess waste

Lower cost Increased uptime New products & services

New revenue Faster deliveries Usage-based pricing

Greater capacity Better efficiency New business models

Page 30: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

Source: Hagleitner

Page 31: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT
Page 32: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT
Page 33: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT
Page 34: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

SAP Leonardo strategySAP Leonardo connects things with people and processes

Page 35: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

35© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Business Processes

SAP Leonardo Foundation

SAP Cloud Platform

SAP LeonardoApplications

Things

Next Level of Experience

Sources Of DataIntegration | Business Partners | Networks

Machine LearningBlockchain

SAP Leonardo empowers the LIVE business

Page 36: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

36© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Leonardo(The “Things” View)

§ Connected Products§ Connected Assets§ Connected Fleet§ Connected Infrastructure§ Connected Markets§ Connected People

LoB Digital Supply Chain(The “Business Process” View)

§ Digital Business Planning§ Digital Response & Supply § Digital Logistics§ Digital Product Innovation§ Digital Manufacturing§ Digital Operations

EFFICENCY Led Models NEW Business Models

Industry view

Line of Business

view

SAP Leonardo Portfolio

Technology view

Confidential & Internal

SAP Leonardo innovation portfolio

Page 37: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

37© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Leonardo innovation portfolio

SAP Leonardo Applications

SAP Leonardo

EdgeSAP Leonardo Foundation

SAP Leonardo Bridge

Page 38: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

38© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Leonardo innovation portfolio

SAP Leonardo Applications

SAP Leonardo

EdgeSAP Leonardo Foundation

SAP Leonardo Bridge

Page 39: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

39© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Connected Markets

ConnectedInfrastructure

ConnectedProducts

Product & Project Network*

Engineering Control Center

Product Lifecycle Costing

Ariba Sourcing

* future scope

Product Insights

Connected Assets

ConnectedFleet

ConnectedPeople

Connected Goods

IBP for response & supply

Hybris Billing

Goods & Equipment

Supply Chain Control Tower

Track & Trace*

Ariba Advanced Supply Chain Automation

Supply Networks

Asset Intelligence NetworkPredictive Maintenance & ServiceWork ManagerAriba Advanced Supply Chain Automation

Fixed Asset Insights

Manufacturing Execution

Manufacturing Integration & Intelligence

Plant Connectivity

Manufacturing Execution

Manufacturing Integration & Intelligence

Global Batch Traceability

Track & Trace*

Distributed Manufacturing*

Manufacturing Networks

Vehicle Insights

Predictive Maintenance & Service

Asset Intelligence Network

Mobile Asset Insights

Transportation Safety*

Connected Parking

EHS dangerous goods

Logistics Safety

Track & Trace*

Yard Logistics

Warehouse Management

Networked Logistics Hub

Vehicle Networks

Logistics Networks

Real-Estate CockpitCloud for Real-EstatePlant MaintenanceEnergy Management*Ariba Procurement

Building Insights

Project Management

Track & Trace

Yard Logistics

Construction

Predictive Maintenance

Asset Intelligence Network

Manufacturing Integration & Intelligence

Energy Grids

Customer Activity Repository

Connected Goods

Connected Marketing

Market Insights

Vehicle Insights

Predictive Maintenance

Connected Agribusiness*

Rural Areas

Networked Logistics Hub (Ports)

Smart Traffic

Connected Parking

Urban Areas

Knowledge Workspace*

SAP JAM

People and Work

Connected Goods

Connected Patient*

People and Health

Connected Homes* (Insurance)

People and Homes

Six IoT application categories in 2017IoT solution spotlights: Ready to be sold

Page 40: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

40© 2017 SAP SE or an SAP affiliate company. All rights reserved. Source: TrenItalia

Page 41: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

41© 2017 SAP SE or an SAP affiliate company. All rights reserved.Source: Harley Davidson

Page 42: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

42© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Leonardo innovation portfolio

SAP Leonardo Applications

SAP Leonardo

EdgeSAP Leonardo Foundation

SAP Leonardo Bridge

Page 43: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

43© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Cloud Platform

SAP Leonardo innovation portfolio: foundation & edge

SAP Leonardo Foundation

SAP Leonardo Bridge

SAP Leonardo Edge

IntegrationMobile Machine Learning

Analytics

Partner Solutions (OSIsoft, Telit)

Technical Services

� Device Management

� Connectivity

� Messaging

Data Management

� Aggregate store

� Times series store

� Data archive

Business Services

� Thing model (digital twin)

� Application Development

� Re-use UI and APIs

� Streaming

� Persistence

� Business transactions

� Predictive and machine learning

� Analytics

Page 44: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

44© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Leonardo innovation portfolio

SAP Leonardo Applications

SAP Leonardo

EdgeSAP Leonardo Foundation

SAP Leonardo Bridge

Page 45: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

45© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Source: Shutterstock

Page 46: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT
Page 47: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

47© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Leonardo 100+ customers live or deploying

Reduce Energy Cost

-20% Production Breakdown

+6.5% Quality

-20% Production Breakdown

+6.5% Quality

Reduced lead time to produce custom motorbikes from 21-day cycle to 6 hours!

Improve Quality in real time

Simplify car refueling experience

1-2% asset maintenance cost reduction95.7% faster load forecasting

improve service levels for customers & new business model.

Customer Satisfaction & Cost

improve service contract compliance and new business models

8-10% reduction in maintenance costs

Predictive Quality

Paint Issue Detection

Visibility into customer’s fitness footprint and workout habits using IOT. Engage Better and Grow revenue

Upsell and Cross with predictive capabilities and connected shoes

Monitor consumption of food and beverages to provide insights and recommend combo-based promotions

100% Improvement on Speed of information retrieval & reliability of data send to ERP

5mins Reduction in Truck Idling time at Port + double cargo handling

$120m Energy Saving in Year 1

Flood Reduction

15% Reduction in driver turnover in the first year Improved Talent development and driver safety

Better Patient Engagement – Diabetes connected kit

Better customer service, reduce carbon footprint and pay per use model

Provide real time insights and to increase vehicle uptime

Efficient Supply chain & cost reduction with predictive for Container Repositioning

23% Improved Equipment Effectiveness

Reduce Maintenance Cost of data centersIncrease customer satisfaction

Increase Forklift operator safety and real time insights

Hundreds of patients saved after alerts notify clinician

Deliver Personalized Experience

Provide value add services to customers and reduce operational cost

SEAT, SAMSUNG and SAP join forces to develop the “connected car” of the future

Deliver Personalized consumer service

Deliver Personalized consumer service to locate food and parking

Recent Wins

Providing customers new digital services

Page 48: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

48© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Leonardo customer engagement

SAP Leonardo IoTLabs

Jump Start Program Design Thinking

Page 49: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

49© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Vertical IoT apps/services

Horizontal IoT apps/services

IoT platform (Including IaaS)

IoT edge software (incl. security and local connectivity)

IoT professional services

IoT communications

“Things”: devices, sensors, machines,

gateways

including

Strategic partner management for SAP Leonardo

Partnership Inventory Overview – 4Q 2016

Page 50: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

50© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Vertical IoT apps/services

Horizontal IoT apps/services

IoT platform (Including IaaS)

IoT edge software (incl. security and local connectivity)

IoT professional services

IoT communications

“Things”: devices, sensors, machines,

gateways

including

Strategic partner management for SAP Leonardo

Implementation Partnerships PLUS Domain Expertise

Application Innovation on SAP Leonardo

Platform Innovation on SAP Leonardo (e.g. Thing Models / Digital Twins)

Infrastructure as a service

Communication / Connectivity

Data Collection / Secure transmission of data / Security

Edge Computing

Platform Interoperability / Vertical Domain Expertise

Partnership Inventory Overview – 4Q 2016

Page 51: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

51© 2017 SAP SE or an SAP affiliate company. All rights reserved.

• We believe in the business value of IoT for our customers

• IoT for SAP is about People, Processes and Things

• SAP will enable our customers to be even more insight driven than ever before

• The need for enterprise IoT platforms will arise and consolidation of the number of platforms will happen

• SAP will establish a strong partner eco-system in order to succeed in IoT

Our beliefs for SAP Leonardo

Page 52: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

Nils Herzberg, Senior Vice President, Global Head Internet of Things, Go-to-Market and Partnerships, SAP SEMarch 20, 2017

SAP Leonardo for IoTConnecting things with people and processes

Page 53: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

Dr. Markus Noga, Vice President Machine Learning, Innovation Center Network, SAP SEMarch 20, 2017

SAP CleaSolving real business problems with more intelligent applications

INNOVATIONCENTER

Page 54: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

54© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Innovation Center NetworkPioneering new markets and disruptive technologies

Machine Learning

Future of Work

Software Engineering –Focus Areas

BlockchainConversationalApplications

Research Programs

Technology Scouting

DisruptiveTechnologies

New markets &business models

Strategic Projects

Ideating with Customers

and new Partners

16

Page 55: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

55© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Technology trends computer visionComputer vision is surpassing human abilities

Sources: LeCun: The unreasonable effectiveness of deep learning, Zeiler: Visualizing and Understanding Convolutional Networks, http://www.clarifai.com/, http://imageannotator.cs.tau.ac.il/

A skier is jumping over snow covered

hill

WaterTravel

No personSea

Landscape

Page 56: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

56© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Technology trends natural language processing

Source. https://code.google.com/p/word2vec/ , http://byterot.blogspot.co.il/2015/06/five-crazy-abstractions-my-deep-learning-word2doc-model-just-did-NLP-gensim.html, https://research.googleblog.com/2016/11/zero-shot-translation-with-googles.html

Stock Market ≈ Thermometer

Human - Animal = Ethics

Library - Books = Hall

President - Power = Prime Minister

Politics - Lies = Germans

Vector Embeddings of Words “Zero-shot” Neural Machine Translation

Page 57: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

57© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Machine learning is the reality behind AISoftware is becoming smarter and this changes our daily lives

• Big data(e.g. business networks, cloud applications, IoT and S/4HANA)

• Massive improvements in hardware (GPU, multicore)

• Deep Learning algorithms

• Computers learn from data without being explicitly programmed

• Machines can see, read, listen, understand and interact

What is Machine Learning? Why now?

Page 58: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

58© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Real-timeData

IoT

Integration

UX

Collaboration

Machine Learning

Mobile

Integration

MicroservicesReal-timeAnalytics

APIs

Intelligently connecting People, Things and Businesses

DigitizationEvery company to become a software-driven company by...

Page 59: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

59© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Clea enables the intelligent enterprise.We integrate learnings from data into SAP applications and platform to help business grow, optimize processes, assist employees and make customers happy.

Page 60: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

60© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP has a strong right to win in Machine Learning

Integration in transactional apps

Trusted Business Partner

HANAunleashes

company data

Business Networks

pool world-wide data

§ SAP is a trusted business partner to customers globally. Our systems touch more 76 percent of the world’s business transaction revenue.

§ Our business networks and cloud solutions connect data flows beyond any single enterprise, and their transaction volume is second to none.

§ SAP HANA brought real-time data on the most granular level to the enterprise opening the door to business transformations never imagined before.

Page 61: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

61© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP’s vision is to make enterprise applications intelligent

Automate Knowledge Work

§ Transformational HR services

§ Lights out finance operations

Digital Core

§ Self-driving customer service§ Conversational sales bots§ Customer retention insights

Enable the Intelligent Enterprise

Do the Impossible

§ Image-based Ariba commerce§ Contextual Concur travel concierge

§ Video-aware marketing§ Visual store execution

§ Drone & satellite-based asset management

§ Vision-enabled manufacturing § Contextual logistics

Digital Core

SAP Clea on SAP Cloud Platform

Page 62: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

62© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Clea for Cash Application

SAP Clea for Resume Matching

SAP Clea for Service Ticket Intelligence

SAP Clea for Brand Intelligence

SAP Clea for Customer Retention Insights

FunctionalitySAP Clea Application

Automatically matches incoming bank statements with open receivables

Assists recruiters and hiring managers by recommending best candidates for a particular job position

Analyzes and creates insights into customers’ transactional behavior

Identifies actual exposure of the brand attributes in the media

Enables service organizations to automate thefirst level processing of incoming serviceenquiries

SAP Clea applications H1 2017

Page 63: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT
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65© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Build newLighthouse

Apps

Bring ML toExisting

Applications

Build Platform & Enable ~20

320

Dec 2016

Jun 2016

~150

Dec 2015

Increase of use cases across SAP…

Use case growthMake enterprise applications intelligent

Increase of use cases across SAP…

Page 66: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

66© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Clea on SAP Cloud PlatformAPIs for SAP SAPPHIRE, training by SAP TechEd

User

Profile Matching

Service Analytics

Invoice Processing

...Image / Video

Advanced Numerical

Text

...

DataScientist

Developer

SAP Clea Business Services SAP Clea Technical Services

Provisioning Infrastructure

Resource Manager

Training Orchestrator

ML Libraries

Training Infrastructure

Applications

API Business Hub

Language Bindings

Data Annotation

on SAP Cloud Platform

Page 67: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

67© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Blockchain a revolutionary trust protocolMake transactions without the need of a trusted central authority

A central authority can be slow and inefficient,constitutes a possible oligopoly and comes with risk of single point of failure and attack.

TodayCentral Authority

FuturePeer-to-Peer Network Using Blockchain

Blockchain is a distributed ledger of digital events that can only be updated by majority consensus which, once updated, can never be modified.

Page 68: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

68© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Blockchain use cases across SAP domains

• Asset registry• Audit facilitation• Dunning• Open items management

• Contract communication• Inventory• Traceability of goods• Certificate issuance &

validation

• Syndicated loans• Securities clearing &

settlement• Reporting• Letter of credit

• Loyalty and customer rewards

• Rating & voting• SLA-issue register

Many moreuse cases in other domains

?!!

Finance LogisticsBanking Social More

• Verified Digital Identity & Management• Digital Logbook & Lifecycle Recordings• Corporate and Consumer Lending

• Digital Twin• Retail Payments & Remittance, International Payments• Trade Finance

Cross-industry cases:

Page 69: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

69© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Digital Business FrameworkSAP Clea and blockchain as part of SAP’s digital core

CustomerExperience

IoT& Supply Chain

Workforce Engagement

Spend Management

MACHINE LEARNING

BLOCKCHAIN

APIs

SECURITY

BusinessTrans-

actionsIntelligentInsights

Digital Core

INDUSTRY

SAP HANA

SAP CloudPlatform

Page 70: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

70© 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP Clea enables the intelligent enterprise.We integrate learnings from data into SAP applications and platform to help business grow, optimize processes, assist employees and make customers happy.

Page 71: Financial Analyst and Investor Program CeBIT · Sources: 1. IDC Worldwide and Regional Public IT Cloud Services Forecast, 2016-2020 – Dec. 2016. 2. IDC FutureScape: Worldwide IT

Financial Analyst and Investor ProgramCeBITMarch 20, 2017


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