Live EngineeringHow SAP S/4HANA supports the Digitization of LoB R&DJohann Dornbach, SAPFebruary 8, 2016
Customer
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Chart about ho many companies have adigitization strategy
„If you went to bed last night as anindustrial company, you‘re going to wake up thismorning as a software and analytics company.“Jeff Immelt, CEO of GE, Minds+Machines Summit 2014
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Products Life Cycle Services
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Companies will sell Services rather than Products in the Future
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The Challenge: Isolated IoT Sensor Communications and Analysis
IdeaManagement
Research &Development
Service &Field
OperationsManufacturing
Sensor Feedback LoopManufacturing Operations
Design
Customers
Social
Internal
Technology
Markets
Sensor Feedback LoopService Operations
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Product: Ø Mechanical – Electrical – Software
Ø Services delivered through the product
Ø Economic performance
Lifecycle: Ø Until decomissioning at customer site
Ø Closed Loop – True PLM
Management: Ø Jointly with customers
Ø Partners – even competitors© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Customer
Let’s extend our understanding of Product Lifecycle Management
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„Digital Twin“ for Business
The physical world
The digital world
Companies need tomaintain a detailed
understanding abouttheir products throughout
the entire life cycle:
Ø As designed, Portfolio and Costs
Ø As Configured, Cost and Plan
Ø As built. Cost to build
Ø As maintained. In Situ Updates
Ø Change in the Field
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True Product Lifecycle Management
The physical world
The digital worldEngineeringEngineering ProductionProduction InstallationInstallation OperationOperation DecommissionDecommission
Production Data
Quality Fingerprint
…
Ramp Up / Start Up
…
Ideas
Designs
Geometries
Stress Simulations
Cost
…
Output
Performance
Issues
Cost
Profitability
…
…
As Designed As Built As Delivered As Maintained
True PLM builds on theDigitalization of ManufacturingCompanies and their Strategic
Priorities.
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R&DR&D Sales & MarketingSales & Marketing ManufacturingManufacturing AftermarketService
AftermarketServiceSupply ChainSupply Chain
ProcurementProcurement FinanceFinance Human ResourcesHuman Resources
Digital Core
Strategic Priorities:
SmartProducts
Track &Trace
ConnectedLogistics
Usage based Billing
Configure,Price, Quote Connected
Manufacturing
EnergyManagement
PredictiveQuality
New Business Scenarios
Remote ServiceManagement
PredictiveMaintenance
AugmentedReality Apps
ü Rethinking the wholebusiness from the endcustomer’s perspective.
1. Customer centricity
ü Flexible reaction tochanges in demand,supply and resources
4. Digital supply chain & smart factory
ü Aftersales Serviceü Value add servicesü Usage based charging
5. Servitization & new businessmodels
ü Intelligentü Self-aware
3. Digital smart products
ü Configurabilityü Adaptabilityü Personalization
2. Serving the “Segment of One”
Digitalization for Manufacturing CompaniesValue creation through deep process and data integration
Let‘s look at these strategicpriorities in more detail.
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Customer CentricityRethinking the whole business from the end customer’s perspective
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Customer CentricityNeeds and implications for R&D
Customer Examples
Needs• Customer Co-
Innovation• Product innovations
resulting from actualequipment usage andincident reports
• Structuredrequirements collectionbased on customerand design partnerinteractions
Business Benefits• 10 to 20% reduction of
manual rework inmanufacturing
• 5 to 20% reduction ofefforts to define andrelease individualizedand market-specificproduct variants*
SAP Capabilities• Project and Design
Network (Planned)• Asset Intelligence
Network• Requirements
Management• Variant Configuration
integrated along thevalue chain fromEngineering throughManufacturing to Sales
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Serving the “Segment Of One”Configurability, Adaptability and Personalization
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Serving the “Segment Of One”Needs and implications for R&D
Customer Examples
Needs• Modularized product
concepts and wellstructured productfamilies
• Platform models crossproduct families
• Selected ETOcapabilities duringsales configurationprocess
Business Benefits• 10 to 30% faster
design process forsmart product offerings
• 10 to 40%• Improvement in
accuracy ofengineering changes
SAP Capabilities• Engineering BoM• Manufacturing BoM• Variant Configuration
integrated along thevalue chain fromEngineering throughManufacturing to Sales
• Authoring ToolIntegrations (CAD,ECAD, etc.)
• Visual Enterprise
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Digital Smart ProductsIntelligent and self-aware
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Digital Smart ProductsNeeds and implications for R&D
Customer Examples
Needs• Systems engineering
approach (incl.mechanical, software,electronic, etc.)
• Embeddedtechnologiesfoundation forequipment networks
Business Benefits• 5 to 14% faster time to
market for newproducts
• 10 to 30% lower R&Dcosts
SAP Capabilities• Systems Engineering
(Planned)• Requirements
Management• Engineering Control
Center – AuthoringTool integrations
• Engineering BoM• Change Management• Asset Intelligence
Network
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Digital Supply Chain & Smart FactoryFlexible reaction to changes in demand, supply and resources
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Digital Supply Chain & Smart FactoryNeeds and implications for R&D
Customer Examples
Needs• Integrated
manufacturingengineering with eBoMand mBoMmanagement
• Digitally visualizedmanufacturingprocesses based onharmonized productdata
Business Benefits• 10 to 55% faster time
to market
SAP Capabilities• Visual Manufacturing
Planner• Product Structure
Synchronization• Visual Enterprise
integrated along thevalue chain fromEngineering throughManufacturing toService
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Servitization & New Business ModelsValue add services and outcome based charging
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Servitization & New Business ModelsNeeds and implications for R&D
Customer Examples
Needs• Life-Cycle cost
calculation capabilities• Software solutions
calculating actualequipment usage
• Data platforms offeringdigital services
• Equipment informationsharing along the valuechain
Business Benefits• New products revenue:
+ 10-20%• R&D cost: - 20-30%• Prod. meet. rev.
targets: + 15-20%
SAP Capabilities• Product Lifecycle
Costing• Asset Intelligence
Network
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How SAP helps the Head of R&DTop 5 strategic initiatives of Manufacturing companies
Strategic Priorities Required Capabilities§Customer Co-Innovation§Product innovations resulting from actualequipment usage and incident reports§Structured requirements collection based oncustomer and design partner interactions
§Modularized product concepts and wellstructured product families§Platform models cross product families§Selected ETO capabilities during salesconfiguration process
§Systems engineering approach (incl.mechanical, software, electronic, etc.)§Embedded technologies foundation forequipment networks
§ Integrated manufacturing engineering witheBoM and mBoM management§Digitally visualized manufacturing processesbased on harmonized product data
§Software solutions calculating actualequipment usage§Data platforms offering digital services§Equipment information sharing along thevalue chain
ü Rethinking the wholebusiness from the endcustomer’s perspective.
1. Customer centricity
ü Flexible reaction tochanges in demand,supply and resources
4. Digital supply chain & smart factory
ü Aftersales Serviceü Value add servicesü Usage based charging
5. Servitization & new business models
ü Intelligentü Self-aware
3. Digital smart products
ü Configurabilityü Adaptabilityü Personalization
2. Serving the “Segment of One”
Examples S/4 HANA R&D
Suite
Prod
ucts
Ente
rpris
eM
anag
emen
t
§Enterprise Portfolio and ProjectMgmt.§Commercial Project Mgmt.§Compliant Product Lifecycle Mgmt.
§Product Development and ProjectControl§Production Engineering§Variant Configuration§Embedded SW Mangement
§Engineering Control Center§Product Lifecycle Costing§Constrain Management§Portfolio and Project Management§Commercial Project Mgmt.§ Innovation Management§Cloud for Product Stewardship
SAP Point of View
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Is your business ready for the Digital Transformation?Disconnected Value Chains and Multiple Solution Models
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SAP Point of ViewFrom Sequential Steps to Collaborative Networks
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Sales ConfiguratorManufacturing BOM
Engineering BOMAs-built/As-maintained BOM
Purchased parts listWorking together seamlessly.
SAP Point of ViewSeamless Collaboration on One Common Solution Model
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Connecting Things with People and Processes
Industryview
Line ofBusiness
view
SAPLeonardoPortfolio
Technologyview
SAP Leonardo(“Things” View)
• Connected Products• Connected Assets• Connected Fleet• Connected Infrastructure• Connected Markets• Connected People
LoB Digital Supply Chain(Business Process View)
• Digital Business Planning• Digital Response & Supply• Digital Logistics• Digital Product Innovation• Digital Manufacturing• Digital Operations
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SAP Leonardo Innovation Portfolio
SAP LeonardoEdge SAP HANA Cloud Platform / SAP HANA platform
SAP Leonardo Foundation
SAP Leonardo Bridge
Connected
ProductsConnected
AssetsConnected
PeopleConnected
Fleet
Product Insights
Goods & Equipment
Supply Networks
Fixed Asset Insights
Manufacturing Execution
Manufacturing Networks
Mobile Asset Insights
Logistics Safety
Logistics Networks
Building Insights
Construction
Energy Grids
Market Insights
Rural Areas
Urban Areas
Work
Health & Sports
Homes
Connected
InfrastructureConnected
Markets
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Live Engineering - Powered by SAP Leonardo
IdeaManagement
Research &Development
Service &Field
OperationsManufacturing
Customers
Social
Internal
Technology
Markets Connected ProductsSensor Feedback Loop
Design
SAPLeonardo
Edge SAP HANA Cloud Platform / SAP HANA platform
SAP Leonardo Foundation
Planned Highlights for R&D inS/4HANA
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Highlights:§ Collaborate and Share Document Info record
Content via Document Center and DMSintegration.
§ Search and Maintain Document Info records withnew FIORI app for Maintain Document.
§ Simple interface to handle attachmentssupporting GOS/DIR and URL as attachments.
§ Integration into external Content ManagementSystems like OpenText via open Interfacestandards (CMIS)
Document Management in S/4HANASolution Overview
AttachURLs
Attach/Modify files
Link DIR toOther
ObjectsMaintain
Status
Create /Search
DocumentInfo record
Collaborate Documents via Document Center
PlannedLab Preview
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SAP’s Content Management Direction for the CloudTarget Architecture VisionHighlights§ Leverage Consistency across cloud applications with Open Standard CMIS (Content Management Interoperability Services ) to integrate
with Content Management Systems§ Open Strategy & Interface to give the Customer the choice for a Content Management Solution ( SAP Standard, OpenText, other Partner )
PlannedLab Preview
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Simplified BOMIntegration Scenario
Highlights:§ Efficient and customizable bill of material search via
filters and key fields.§ BOM draft feature to enable tentative decisions and
changes. Changes can be either saved or discarded.§ Provision of a change timeline which allows navigation to
different change instances from application itself.§ Functionality to create and assign change number from
the overview page.§ The application also incorporates attachment services.
The attachment service is a reusable UI component thatallows the users to attach documents and files to anybusiness object.
Useattachmentservices to
attachrelevant
documents
Edit BOMsand save
drafts.Discard or
save changeslater.
Create NewAlternatives
Use changenumbers to
createchanged
BOMinstances
Find Bill ofMaterial
PlannedLab Preview
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Highlights:§ Efficient collaboration via connected change processes
across departments.§ Controlled change risks via joint decision based on workflow.§ Single source of truth, centralized change data of scopes,
processes, and task owners.§ Flexibility to support all kinds of changes.§ Quickly pinpointing change impacts.
Change Record ApplicationsSolution overview
PlannedLab Preview
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Seamless integration:“One Configuration Model”
Manufacturing ServiceSales
Engineering Supply Chain Asset Mgt.
S/4HANADigital Core
Configure, Price,Quote (CPQ)
Product LifecycleManagement
Planned
Highlights:§ Mobile-first, 3D-first User Experience
§ Micro-service-based cloud engine for flexible processes
§ Sales can flexibly enrich options and values
§ Seamless integration: One Configuration Model
§ Focus on S/4HANA-related roles
§ Fully integrated into all VC-related business processes
§ Leverages SAP HANA capabilities
Configure Price Quote & S/4HANA Variant ConfigurationIntegrated CPQ and S/4HANA for the Entire Configuration Life Cycle
Lab Preview
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ManufacturingCloud Services
SAP Ariba
IoT/AIN
Connected Products
HCP Services
SAP HANA Cloud Platform
SAP HANA
SAP NetWeaver
ECC
Project and DesignCollaboration
EmbeddedSystems
Systems Engineer Cockpit
Embedded SW
Requirements Management
Functional Structure Management
Where Used Analysis
Compatibility Management
Test Validation
IOT Analytics
Collaborative Engineering and Document Collaboration
Collaborative 3D Visual Design Review
Simple Task/Worklist Management
Change Management Integration
• Integrate software as part of the Smart Connected Product• Seamless systems engineering• Ensure compatibility between the software and hardware
• Closing the process gaps between engineering and the digital twins• Share, submit and collect engineering documents• Execute task structure across company boundaries
Storyline Lab Preview
Future
Future
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Data Foundation
Mode 1 Mode 2
Business Intelligence
Intelligently connect people,things, and businesses
Differentiate Businesses
Hyper-automate businessprocesses
Run Businesses
Deliver insights to drivestrategic decisions
Steer Businesses
Embrace DataOrchestrate data of anyvolume, velocity, and variety
The world of Bi-Modal IT
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SAP Connected ProductsThe Digital Product Innovation Platform
ProjectCollaboration
Network
DigitalManufacturingAsset IntelligenceNetwork
Industry 4.0 & Internet of Things
SAP HANA PLATFORM
Digital CoreS/4HANA
DesignCollaboration
Network
Customer Engagement and Commerce
SAP HANA CLOUD PLATFORM
PartnerSupplier
CustomerManufacturer,AftermarketCustomer
SAP HANA CLOUD PLATFORM
Future
EngineeringFormulation
Design
Projects & Portfolios
Variant Configuration
Q&A
Thank you Contact information:
Johann DornbachVice President, ConfigureProducts & Innovation S/4HANA Idea – LoB Research & Development
SAP SE Dietmar-Hopp-Allee 16, 69190 Walldorf, GermanyT +49 6227 7-70578, M +49 171-3085432E [email protected]
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In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to developor release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible futuredevelopments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any timefor any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to placeundue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.