SAP’s Digital Transformation to Run Simple
SAP Transformation Study
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Table of Contents
1. Why we need to transform 02 1.1. Digital Trends and their impact on SAP 03 1.2. Digital transformation impacts every Line of Business 04
along the entire value chain
2. The Run Simple Initiative 05 2.1. Transformation Approach 06 2.2. Transformation Principles 07 2.3. Enabling Technology 08
3. How SAP is Running Simple across all Business Units 09 3.1. Learn how SAP uses Data Management as the 11
Basis for Digital Transformation 3.2. Learn how Marketing at SAP boosts Pipeline Growth 15
powered by SAP Hybris 3.3. Learn how Sales at SAP Sells More in Less Time 21
powered by SAP Hybris Marketing and Sales 3.4. Learn how Finance at SAP drives business 26
performance in the digital world powered by S/4HANA
3.5. LearnhowProcurementatSAPSimplifiesProcesses 32 powered by SAP Ariba Solutions
3.6. LearnhowSAPsimplifiesTravelandExpense 37 Management powered by SAP Concur
3.7. LearnhowSAPsimplifiesExternalWorkforce 42 Management powered by SAP Fieldglass
3.8. Learn how HR at SAP Drives Employee Engagement to 47 theNextLevelpoweredbySAPSuccessFactors
3.9. Learn how SAP streamlines Enterprise Analytics to 54 achieveSteeringExcellenceintheDigitalAge
4. Want to learn more? 59
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
2SAP’s Digital Transformation to Run Simple
Customer / End-User
Shareholder Market Trends
delight
be profitable be predictable
grow leverage
differentiate
empathize
improved customer satisfaction
improved efficiency improved profitability
Operating Model
digitize reinvent
improved decision making improved reach
Analytics
Why we need to transform SAP is one of the largest and most well-established software companies in the world. Despite that,weexperiencethesamepressuresasotherorganizations.Wemustacceleratetoremaincompetitive in a changing economy.
Companiesareexpectedtogrowwhileexpandingonoperatingprofit,bepredictableandprovideauniquecustomerexperience.Inordertocatertothosemultipleobjectives,SAPneedsto reinvent our operating model. This model comprises all the ingredients that contribute to the company’s value generation—capabilities and processes, technology assets, and people.
EMPATHIZE WITH AND DELIGHT CUSTOMERS
Inadigitalworld,customerexpectationschange.Whether it'sB2CorB2B,theyexpecttobe able to buy whatever they want, whenever they want it. They demand a seamless cross-channel experienceavailableanytime. Trueempathyisexpectedateverytouch point along the customer journey,meaningcompaniesneed to be able to predict their customers’ needs.
GROW, EXPAND ON PROFIT, AND INCREASE THE SHARE OF PREDICTABLE REVENUE TO MEET SHAREHOLDER EXPECTATIONS
Inacloud/subscriptionbusiness,costs are immediate (cost of sales, cost of delivery) while revenue isratable.Averagedealsizeisdecreasing while at the same time transactional volume is rising. This requires careful management of process cost and customer retention to surpass the margin trough, and to be able to scale—especially through automated down stream processes.
LEVERAGE DIGITAL TRENDS TO STAND OUT IN THE MARKET & STAY AHEAD OF THE CURVE
Typically process design comes first,andtechnologytoenablethosecapabilitiesfollows.Inadigital world, technology innovation also triggers process innovation—business models arise from trends that have not been there before. To stay ahead of the pack, companies need to quickly leverage those opportunities to change and differentiatethemselvesfrequently.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
3SAP’s Digital Transformation to Run Simple
Machine Learning
Internet of Things
Augmented Reality
Block Chain Cloud Computing
Social Mobile Big Data & Analytics
From onPrem to (micro-service) Cloud platform & software offerings
From human high-touch to automated intelligent operations
From direct high-touch to digital / low-touch (omni/cross-) channels providing a unique customer experience
Inthemidstofthischange,complexityhasbecomeamajorproblemthatstandsinthewayofdigitaltransformation and innovation. Becoming a digital businessmeansfirstcuttingthroughthiscomplexity.Simplicity is a prerequisite for innovation, and this resulting technology will be a core part of the overall business strategy.
MajortrendsareimpactingSAP’svaluechain end-to-end.Totapintotheopportunityofdigitization,this means a transformation from on-premise to cloudplatformofferings,fromhumantoautomatedoperations, and from direct high-touch to digital low-touch channels.
Constant innovation is the key to growth. Customers’needschangeconstantly.It’seasytobecome irrelevant unless a company has a bias toward innovation, versus a bias toward the status quo. ” Bill McDermott, SAP CEO
Digital Trends and their impact on SAPAcrossallindustries,companiesareexperiencingunprecedentedchangethatistransforming business models, processes and even the way we work. Technology trends such as hyper connectivity, cloud computing, and big data go hand-in-hand with social and business trends that are changing how we live and work.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
4SAP’s Digital Transformation to Run Simple
R&D Marketing
Service & Support F&A HR
Sales
Analytics Across the entire value chain allowing real time decision making. FromDatatoInsighttoAction.
Master Data Standardization A holistic, company-wide master dataconceptacrossorganizationalboundaries.
BOOST INNOVATION AND TIME-TO-MARKET
• Shortandeffectiveinnovationcycles through real-time customer and market insight
• Continuous delivery of integrated micro-services on aneasy-to-extendplatform
SUPPORT WITHOUT INCIDENTS
• Proactive care through real-time 360 customer insight and issue prediction
• Always-on customer support through in app chat bots and artificialintelligence
Digital transformation impacts every Line of Business along the entire value chain
GROW QUALITY PIPELINE
• Instantinsightsinto campaigneffectiveness
• Automated intelligent nurturing• Automated routing through contextualreasoning
PREDICT AND STEER IN REAL-TIME
• Real-time view on cross-board steering indicators with drill-down and simulation / prediction capabilities
• Fully automated down-stream execution
INCREASE CUSTOMER- FACING TIME
• Automated sales content creation basedonprofiling/need-basedsegmentation
• Automated intelligent up-sell / cross-sell recommendations with win rate prediction
• Real-time 360º customer insights
WIN THE WAR FOR TALENT
• Automated intelligent talent sourcing through semantic reasoningofskillprofilesandsocial network crawling
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
5SAP’s Digital Transformation to Run Simple
R&D Marketing Sales Delivery Service & Support F & A HR
Cloud Renewals: Strengthen Customer Retention 2
Simplify Selling 1
Simplify Cloud
S/4HANA: Renew Our Digital Core 5
Simplify Sales Commisions 4
6 Revenue Accounting
Improve External Workforce Management 8
Standardize Services Project Management 7
Simplify Travel and Expense Management 9
HR Goes Cloud 10
3
The Run Simple InitiativeIn2016SAPhasembarkedonamajortransformationinitiativecalledRun Simple. It’sajourneytoreducecomplexityinourinternalprocessesandsystems.
WehavesetinplaceTopFocusProjects,addressingourcustomers’andemployees’painpointsthroughfundamentalprocesssimplification,enabledbybest-in-classtechnology:
WithRun Simple we make a promise. A promise to our customers to become more agile and to deliver softwarethat’seasytouse.Wehavetorethinkourownbusinessmodeltobefuture-ready.Wemustadoptgroundbreaking ideas and technologies more quickly. And we have to put our customers’ needs in the center ofallouractivities.Inotherwords:Wehavetomakebusiness simple!
Run Simple is our operating principle and the logical response to customer, shareholder, and market expectations.Run Simple is how we reinvent our operating model, redesigning processes along customer journeysandevolvingtheenterprisearchitecture,allwhile being a lighthouse for our customers.
The goal: Be the MOST Innovative Cloud Company, Powered by SAP HANA.
WhatIlikebestaboutallourRun Simple initiatives and our 10 FocusProjectsisthegoalitself—toachieveasimplerSAP.Weuseour own standard software the way it was built, with little to no customization,andweusethe samesoftwarethatwesell.Weourselves become the best SAP reference customer.” Christian Klein, SAP COO
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
6SAP’s Digital Transformation to Run Simple
Transformation ApproachHigh customer and people centricity is at the core of our Run Simplephilosophy.Weputpeople’sneedsatthecenterofouractivitiesandthenworktowardsfulfillingthembyredesigningprocesses,standardizingmasterdata,modifyingtheITlandscape,andleveraging analytical insights.
Whilewesometimesseemtofocustoomuchonorganizationalchanges,oronspendingmeasurestoimproveourprofitability,ourfuturesuccesswillonlybedeterminedbythecustomer centricity of all we do, what we sell, and how we run.” Christian Klein, SAP COO
Business Process Redesign
Across all Lines of Business.
Analytics Across the entire value chain allowing real-time decision making. From DatatoInsighttoAction.
Leverage Digital Innovations
Powered by SAP S/4HANA.
Run Simple = High customer and
people centricity
Master Data Standardization
A holistic, company-wide master data concept acrossorganizational
boundaries.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
7SAP’s Digital Transformation to Run Simple
Thedegreeofsimplificationrequiredtomeetourcustomer’sneedscanonlybeachievedthrough disruptive process redesign. Think process simplification first and, based on this, modify the systems and technology base.
BUSINESS PROCESS DIAGNOSIS
Understand as-is process and perform gap analysis with respect toexpectations.
Process Steps:• Process workshops with operations expertsacrossallLinesofBusiness
• End-user feedback sessions via calls and workshops
• Prioritizethechallengesalongtheend-to-end process
• Identifykeygamechangers(longterm) and quick wins (short term)
• Defineavisionandroadmappergame changer
BUSINESS PROCESS REDESIGN
Depending on the result of the previous phases, chose the right mixofmethods.
Process Steps:• Customercentricity:End-to-end
user panels to validate processes• Establish a new end-to-end mindsetandoptimizedoperatingmodel across the value chain of the company
• Refocusonend-userexperiencealongthecustomerjourney
• Developprocess&ITroadmap• Createuserstories(Business&IT)
BUSINESS PROCESS IMPLEMENTATION & DEPLOYMENT
• Implementthequickwinsincontinuous improvement initiatives
• ExecuteITroadmapinagileapproach
• Drive deployment & end user adoption of the new solution by using it in a rapid way
Transformation Principles
THINK CUSTOMER OBSESSION NOT INSIDE-OUT
Assess degree of value creation for our customers and end-users to continuously challenge the status quo
THINK END-TO-END NOT FUNCTIONAL
Thebiggestsimplificationpotential is in-between silos, not in local optimization
THINK PROCESS REDESIGN FOR RESULTS, NOT PROCESS SAKE
Process redesign has to focusonmaximizingvaluegeneration and elimination ofproxies
THINK DIGITAL, NOT TRADITIONAL
Rethink traditional processes in the light of digital technologies
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
8SAP’s Digital Transformation to Run Simple
Enabling TechnologySAP’s system landscape has been grown over decades with a strong OnPrem core. Over the last couple of years, we have moved capabilities into the cloud, leveraging acquired assets. That has led to fasterinnovationcyclesandmoreprocessstandardizationandsimplificationincommodityareas.Inparallel,wehavestartedtoleveragetheSAPCloudPlatformtorapidlyimprovetheuserexperience,toembedcontinuousinnovations(e.g.MachineLearning)intoexistinghybridlandscapesandtoleverageitforuser-centricdifferentiatingsalesapps.
Inordertosupportemergingbusinessmodelsthattransform SAP into a cloud company (growth) but at the same time contribute to a massive increase in operationalefficiencies(costsavings),wedecidednottojustconvertourERPsystemtoS/4HANA,buttoinsteadstartwithagreenfieldapproach.Ledbybusinessprocess redesign triangulated with S/4HANA application capabilities, we designed the new digital core for SAP.
The OnPrem core becomes small and further capabilities move to the cloud, such as salesforce automation, configure-price-quoteandcommissionsmanagement.Inordertostandardizeandsimplify,weworkcloselywithSAPProductandInnovationDevelopmentteamsonfunctionalandintegrationgaps.Weestablishedaco-innovationmodelwhereITisdrivingrequirementsinto
development to create a reference architecture valid for allcustomersofsimilarsizeandindustry.IntegrationtoCloud “satellites” (Ariba, Concur, FG, SFSF) has already significantlyimproved,andfunctionalenhancementsinFinance(Accrualcockpit,IntercompanyBilling,RoyaltiesManagement ) are being co-developed.
At SAP, the end goal is to arrive at a service-oriented architecture with a lean OnPrem Core and connected cloudservicesthatcanbeflexiblyexchanged.Thiswillprovide agility to support new business or commercial modelsandestablishacorethatisrobustandflexibleenoughtocarrySAPintothenextdecadeandsupportfuture growth. Plus, we leverage emerging technologies likeMachineLearningwithinITspecificsolutionstocreateadditionalbusinessbenefits.
SAP Hybris Commerce
Manage Demand Manage Deal Execution Order-to-Cash Customer Life Cycle
SAP Hybris Revenue Cloud
Lead Mgmt CPQ
Order Mgmt Oppty Mgmt
SAP HybrisSAP HybrisSales
SAP HybrisBilling
DigitalCore
Campaign Mgmt
Convergent Invoicing
Customer Service
Response Mgmt
Universal Ledger
Marketing
DigitalTouchpoints
Store
SAP Cloud Platform
FI-CA
SAP Analytics Cloud
Master Data Governance
S/4HANA
S/4HANA
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
9SAP’s Digital Transformation to Run Simple
Learn how Marketing at SAP boosts pipeline growth powered by SAP Hybris
Learn how SAP uses Data Management as the basis for digital transformation
Learn how Finance at SAP drives business performance in the digital world powered by S/4HANA
LearnhowSAPsimplifiesExternal Workforce Management powered by SAP Fieldglass
LearnhowSAPsimplifiesTravel and Expense Management powered by SAP Concur
Learn how Sales at SAP sells more in less time powered by SAP Hybris Marketing and Sales
Learn how Procurement atSAPsimplifies processes powered by SAP Ariba Solutions
Learn how HR at SAP drives employee engagement tothenextlevelpoweredby SAP SuccessFactors
Learn how SAP streamlines Enterprise Analytics to achievesteeringexcellence in the digital age
21
64
8 9
3
7
5
Digital transformation impacts the entire organizationManagers and employees on every level and in all our business units are facing individual challenges.Transformationcanonlybeachievedifeveryoneintheorganizationisawareofhisor her part in the game—from the board members to each individual employee.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
10SAP’s Digital Transformation to Run Simple
Learn how SAP uses Data Management as the basis for digital transformationDataisthefoundationofyourbusiness.Withoutit,you’llhavetroublecreatinganythingof value. To stay competitive and successfully support pipeline growth, you need a well maintained master data foundation.
Master Data
1
Marketing
2
FinanceSales Procurement External Workforce
Travel and Expense
HR Analytics
43 6 8 975
*ScienceDaily
Todaymorethanever,dataisgrowingexponentially.90%oftheworld’sdatahasbeengeneratedinjust last 2 years*.Thepainthatorganizationsareexperiencingaroundconsistentreporting,regulatorycompliance, and the move towards Software as a Service (SaaS)offeringsisputtingenormouspressureonEnterprise Data Management.
Data is a valuable corporate asset which, when managed properly,canincreaseefficiencyacrossallLinesofBusiness and support a company’s ability to achieve strategicgoalsandfinancialresults.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
11SAP’s Digital Transformation to Run Simple
SAP’s transformation to the Cloud creates new challenges for EnterpriseDataManagement.InordertoRun Simpleweneedto:
Standardizeandsimplifydata processes
Deliver innovative business and technical solutions
Accelerate business processes through high quality master data
Improveoperatingmargins and internal efficiencies
HR
Inconsistentemployeeinformationand data quality across organizationandprocesses.
SALES
AE’s are spending a lot of time on sourcing, administration, and qualificationoftheircustomerandopportunity management.
MARKETING
Fragmentedandde-centralizeddata prevents marketing operations from generating high-value business and reacting to an agile, fast-paced market.
DIGITAL OFFICER
Accuratebudgetsizing, drivingefficiencymeasures, and improving risk management is undermined by inconsistent anddecentralizeddata.
IT
High cost of ownership and complexIToperationsarechallenging a seamless and standardizeddeliveryof cloud-based solutions.
FINANCE
Nocentralizedhubto manage master data and data quality checks.
Enterprise Data Management’s ChallengesManyareasacrossthecompanydependonaccurateandconsistentMasterData:
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
12SAP’s Digital Transformation to Run Simple
Enterprise Data Management’s Transformation ApproachTransformingMasterDataManagementisacombinedeffort.Toachievesustainablechange,we need to equally transform our internal processes, the mindsets of our people, and our technology landscape.
How can we provide correct, clean, current data that is easy to access, use, add and update for fast, accurate results every time?
BUSINESS PROCESS
Weareleveragingabusiness-ledglobal master data management and governance program to reducecomplexity.
TECHNOLOGY
Weareusingbest-in-classSAPsolutions for enterprise information management, like SAP Master Data Governance, SAP Data Services, SAPInformationStewardand SAP CRM powered by SAP HANA.
Business Rules Two-man Rule
Quality Checks
Automate & Standardize
Governance Framework
ContactsCustomer Data Finance Vendor
Suppliers Partners Employees Products Materials Pricing
PEOPLE
Weareholdingadatacouncilwithrepresentatives from each line of business to bring change to everyone’s personal agenda.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
13SAP’s Digital Transformation to Run Simple
How do we organize Master Data Management at SAP?
HR• Reducethecomplexitiesofmanagingemployeejobchanges(orgunits,jobtitles)
• Ensure accurate and timely employee information across the organizationandprocesses
SALES• Allow salesforce to spend more
time with customers instead of admin tasks
• Flexibleaccountplanningand Go-To-Market model
• One view of the customer regardless of the channel (online, on-premise)
MARKETING • Enable high-volume business, maximizegenerationof high-value leads
• Automate,standardize,andsimplify marketing operations to increaseagilityandefficiency
DIGITAL OFFICER• Whichinformationcanaddbusinessvalue,driveefficiency, or improve risk management?
• How much budget and commitment from the business doIneedtomakemycompanysuccessful?
IT• Reduce total cost of ownership andsimplifyIToperations
• Agile-based delivery of Cloud-based solutions
• Infrastructureandarchitecture tosupportBigData&IoT
FINANCE• Optimizethedataqualitychecks
with data governance products and tools
• Use one central hub to manage master data using SAP’s Master Data Governance product
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
14SAP’s Digital Transformation to Run Simple
Business Benefits realized
Enabling Technology
Business Benefits realized
€75 MILLION
Benefitsthroughmasterdata improvements
€960K
AnnualreductioninITtotalcost of ownership
CURRENT
Wecankeepaddingmore1:1replications,BUTeachsystemisaddingcomplexity,risk,andcost.
10%
Increaseinmarketingproductivity through continuous data quality year over year
25,000
Hours of increased productivity for account executivesin2015
>97.5%
of 9 million contacts meet standards for overall contact completeness
RECOMMENDED
BuildascalableandflexibleplatformbasedonSAPHANA that supports Governed Master Data and cross system Analytics.
€13 MILLION
Saved with better contact data
70%
Automated data operation processes
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
15SAP’s Digital Transformation to Run Simple
Marketing
2
Master Data
1
FinanceSales Procurement External Workforce
Travel and Expense
HR Analytics
43 6 8 975
MARKETING NEEDS TO REACT TO A FAST-CHANGING MARKET:
Learn how Marketing at SAP boosts pipeline growth powered by SAP HybrisWeaskedourselves:ArewerunningLiveinMarketing?WhatarewedoingtotransformMarketing? How can we streamline and simplify our processes along our end-to-end-value chain, from campaign planning to lead handover?
Data silos are holding companies back
Real-time analytics is required to understand how customers are engaging with us. Therefore customer data needs to be aggregated across the enterprise.
The customer is in the driver’s seat
Customerjourneystodayare multi-dimensional andcomplex.Customersdetermine their own, uniqueexperienceanddemand to be engaged through the channels of their choosing.
Simplification for the cloud
Moving to the cloud drives companies to reinvent how they run. This results in a transformation of the ITlandscape,adisruptiveprocess redesign, and investment in your people.
Volume business requires automation
Automated nurturing andleadqualification,as well as a close collaboration between marketing and sales enable pipeline growth.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
16SAP’s Digital Transformation to Run Simple
MARKETING'S VALUE CHAIN:
Campaign Execution
Campaign Planning
Response Handling NurtureScoring &
Routing Lead Handover
to Sales
Campaign ExecutionHigh average campaign preparation time
Campaign PlanningLow integration between Marketing and Sales activities
Response HandlingNo full view into a customer’s history & engagement activities
NurtureLacking analytical capabilities to optimizemarketingefforts
Scoring & Routing<1.5 days for leads to be routed for nextfollow-upstep
Lead Handover to SalesLow integration between Marketing & Sales activities
MARKETER
Campaign ExecutionHigh cost event driven marketing vs.Digitalfirst
Campaign PlanningLimited transparency on brand value
Response HandlingDelayed and manual tracking of demandgenerationeffectiveness
NurtureLack of nurture capabilities means higher spend on tele activities
Scoring & RoutingVery limited automated scoring capabilities
Lead Handover to SalesEnsure quality demand generation withhighefficiency
CMO
Marketing’s ChallengesInordertomakelifeeasierforourpeople,weaskedthemtogivefeedbackontheirpersonalpainpoints throughout the end-to-end marketing process. Based on the feedback we received, we identifiedvariousprocessesinneedofimprovementorredesign.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
17SAP’s Digital Transformation to Run Simple
Historical non-digital ready andoptimizedmasterdatamanagement
Complexityofexternalandinternaldata sources
CIO
High number of independent data sourcesincl.externalsources
Suboptimal, not intuitive end-user experience
Third party systems used at high cost
GLOBAL CHALLENGES ACROSS THE VALUE CHAIN:
Lacking support of new business models
Manual and highly complexprocesses
Low integration between Marketing and Sales
Lacking analytical capabilities and data quality issues
New structures, skillsets, working models required
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
18SAP’s Digital Transformation to Run Simple
Marketing’s Transformation ApproachBasedonthepainpointsweidentified,wedefinedacleartransformationvisionandroadmap, including both short-term quick wins as well as long-term game changers.
TODAY
• High-touch event-driven focus
• Complexoperationswithhighly manual processes and various solutions
• Complexsetupwith third party solutions
• High degree of custom development
Business
Technology
TRANSITION
• Streamlines processes on a single platform
• Centralizeddatamodelenabling B2C scenarios
• Reducedcomplexity/Streamlining of processes and enterprise architecture
• Marketing Automation enabled by one central and integrated platform
• Reduced custom development
TOMORROW
• Live Marketing supported by multichannel digital-driven low-touch volume marketing
• SimplifiedMarketingandSales pipeline processes deliveringefficiencyandgovernance
• Live Marketing fully cloud-enabled
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
19SAP’s Digital Transformation to Run Simple
MARKETING'S VALUE CHAIN:
Campaign Execution
Campaign Planning
Response Handling NurtureScoring &
Routing Lead Handover
to Sales
Campaign ExecutionGlobal standards on client data
Campaign Planning50% reduction of campaign preparation time
Response Handling360° view of all customer interactions
Nurture10 mins from inquiry to initial response activity
Scoring & RoutingHours vs Days for leads to be routed and followed-up
Lead Handover to SalesSimplifiedEngagementforimprovedleadqualification
MARKETER
Campaign ExecutionDigital First methodology enabled by strategic segmentation
Campaign PlanningTransparency on brand value
Response HandlingReal-time, automated tracking of demandgenerationeffectiveness
NurtureFull-fledgednurturecapabilitiesavailable and 92% less response processing time
Scoring & RoutingAdditional scenarios (i.e. always on)
Lead Handover to Sales40% more leads and improved acceptance / pipeline contribution
CMO
Marketing’s Business BenefitsUltimately our goal is to enable our people to focus on and even scale their daily business activities while increasing their satisfaction.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
20SAP’s Digital Transformation to Run Simple
SAP teams trained on automation concepts
Externalandinternaldata sources more integrated (e.g. social channels)
CIO
12+ databases retired or integrated
ImprovedEndUserExperiencewithSAP Fiori
IncreasedusageofSAPSolutionsleads to Cost Reduction
InnovativeTechnologiesintegratedand co-innovation activities
GLOBAL BENEFITS ACROSS THE VALUE CHAIN:
Marketing automation increasesefficiencyat lower cost
One central platform to support end-to-end processes, providing a 360° view of all customer interactions in real-time
Successful preparation towards Cloud Readiness
Close collaboration between Marketing & Sales with pipeline contribution increase
New structures, skillsets, and working models established
Enabling Technology
Score Nurture Handover Marketing to Sales
Opportunity Management
Order Management
Marketing Campaign Planning
Campaign Execution
Response Handling
Quote Management
REPORTING | MANAGEMENT DASHBOARD | OPERATIONAL INTELLIGENCE
As-Is SAP CRM / SAP Hybris Marketing / non-SAP Solutions SAP CRM /SAP C4C / Harmony non-SAP Sol.
SAP ERP / SAP CRM non-SAP Sol.
ECC 6.0/ SAP S/4HANA
To-Be SAP Hybris Marketing Cloud SAP Hybris Cloud for Customer Revenue Cloud SAP S/4HANA
HIGH- LEVEL
PROCESS
MARKETING SALES
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
21SAP’s Digital Transformation to Run Simple
Learn how Sales at SAP sells more in less time powered by SAP Hybris Marketing and Sales
Sales
3
Marketing
2
Master Data
1
Finance Procurement External Workforce
Travel and Expense
HR Analytics
4 6 8 975
AsCloudrevenuewillexceedOn-Premisebusinesssoon, weneedtoactnow!Currently,ourprocessandITlandscape is solely aligned to On-Premise products and sales. However, as On-Premise increasingly becomes a thing of the past and as we move towards digital solutions at high speed, we need to fundamentally modify our transactional processes and systems end-to-end.
To keep pace with market trends and our newly arranged sales pipeline, we need to be quick and courageous as we set up lean processes with quick approvals and morespecificcustomerinformationgathering.Weallknow, Cloud is our future! And Cloud can’t run on old transactions. That’s why we need to simplify both our internal transactional set-up and the way we sell Cloud.
Newbusinessmodels,markets,andsaleschannelsaredrivingSAP’sshareholdervalue:
Cloud subscription
Total revenue
Operating Profit
2016
€ 2.99 bn +184%
€ 22.07 bn +31%
€ 6.63 bn
2020
€ 8.50 bn
€ 29.00 bn
€ 8.50 bn
New markets
New sales channels
Digital trends
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
22SAP’s Digital Transformation to Run Simple
Customer expectation
Value assurance and adoption is a leading paradigm. Customer success needs to be ensured to keep loyalty and renewals.
Price = customer value
Pricing model needs to scale directly with the customer value generated. Morestandardizationisrequired to enable scale in the Cloud (no tailored contracts).
Change in Sales incentivation and compensation
Customer loyalty and renewals as well as new and upsell bookings are equally important and should be rewarded accordingly.
Omni-channel digital experience
Buying behavior changes. Upstream digital touchpoints (e.g. web site, demos, trials, stores) and high-touch physical touchpoints (e.g. sales rep) are equally important.
New business models
New consumption-based business models need tobeoperationalizedfor go-to-market (e.g. pay-per-use, pay-as-you-go). Acceleration of innovation adoption drives competition. A smarter bundling of products and services is emerging.
Cost are immediate, margins are tight
WithincreasingshareofCloud revenue, volume in lowerdealsizesegmentsgrowssignificantly.Recurring revenue in the Cloud is based on a differentcoststructure.Process costs have high impact on margin, hence automation is essential.
Mindset change of Sales
Regular recurring deals are preferred over fewer sporadic large transactions. A tight integration from Marketing to Sales and Finance is needed to drivesimplificationandstandardizationacross all deal actions.
Guided Selling
Leverage Machine Learning Capabilities to guide Sales Reps through the deal executionwithProductRecommendations
Sales’ Transformation ApproachHow can we reimagine our future while accelerating business today?
KeyaspectsofSales’digitaltransformation:
PUT PEOPLE & CUSTOMER EXPERIENCE AT THE CENTER
BUSINESS PROCESS REDESIGN
stepwise along end-to-end sales process
INSIGHT & MASTER DATA STANDARDIZATION
across countries and Lines of Business
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
23SAP’s Digital Transformation to Run Simple
Sales’ process challenges and desired improvements How do we become faster and more agile, while enabling new business models and scale across geographiesandbusinesses?Howcanwemakeexecutionsimplerforoursalesteams?
SALES’ VALUE CHAIN:
LeadCampaign Opportunity OrderContract Invoice Accounting
TODA
Y
Campaign / Lead• No insight in
campaigns• Highmanualefforts
to run campaigns• Lead routing and
nurturing toocomplex
Quote• No low-touch
process for volume business
• Complexdealmotions and quoting process
• NoAmazon-likeguided selling
Order• Too many invoices
for one contract• No holistic view on
customer due to multiple orders
• Exponentiallyincreasing order and invoice volume
Renewal• No standard
process for renewals >1BN€
• No active risk mitigation
• Highly manual XLS-based process
Contract• Long approval
chains, limited auto approvals
• 50% redlining in Cloud contracts
• Manual contract creation
TOM
ORR
OW
Campaign / Lead• Expandedmarketing
automation capabilities incl. nurturing, scoring, and routing
• Unifiedleadmanagement bridging Marketing and Sales
• Digital-ready data model
Grow Pipeline
Quote• Shortened sales cycles byprefilled,personadriven user interface
• Product and service configuration,guidedsellingandsimplifiedpricing
• Unifiedquotingprocess,tighter integration to order management
• 360° view of customer
Sell more in less time
Renewal• Automated provisioning• Renewal@risk process
for higher customer retention
• Automated renewal report to take action
High Customer Retention
Contract / Order• Reduced approval chains
through deal health based approval process
• Consistent pricing and discounting
• Online composition of modularizedlegalcontent
• Consolidated orders and invoices through solution contract
• Automated order management
Automated F&A processes generate faster cash
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
24SAP’s Digital Transformation to Run Simple
Benefits of a transformed Sales organization
5 WEEKS
Reduction in time to market
+38%
of Revenue coming from New Business Models (CloudMixin2016)
+68%
IncreaseinSalesQuota-CarrierProductivity (2012 to 2016)
+77%
oftheDealExecutionrunningonMobile device
>90% OF QUOTA CARRIERS
usingHarmonyInsightsinonemonth (Fastest adoption of a Sales System at SAP ever)
4X FASTER
toexecutecommondealmotionactivities (e.g. create a quote)
+28,000
users consuming analytics and insights on SAP HANA (2016)
+1.6M VIEWS/HITS
of Enterprise Analytics assets (reports & dashboards)
3X
moresitetrafficandinsights served per year
BUSINESS PROCESS REDESIGN
PUT PEOPLE AND CUSTOMER EXPERIENCE AT THE CENTER
INSIGHT AND MASTER DATA STANDARDIZATION
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
25SAP’s Digital Transformation to Run Simple
Outlook on Sales’ Transformation into the SAP CloudSeamlessly integrated enterprise Sales platform, connecting Marketing, Sales, andtheBackoffice.End-to-EndprocessintegrationandautomationfromCampaigntoCash,enabling low-/ no-touch sales motions including digital commerce.
SAP Hybris Commerce for SAP’s Digital Store
S/4HANA as Digital Core
SAP Cloud Platform
S/4HANA
SAP Fiori to ensure E2E user experience
SAP Hybris Marketing Cloud
SAP Hybris Sales Cloud
SAP Hybris Revenue Cloud
SAP Hybris Billing
CAMPAIGN LEAD OPPORTUNITY QUOTE CONTRACT ORDER INVOICE ACCOUNTING
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
26SAP’s Digital Transformation to Run Simple
Learn how Finance at SAP drives business performance in the digital world powered by S/4HANATobehonest,lifewassimpler15yearsagoatSAP.Wehadaverysimple,uniformbusinessmodel.WesoldtheSAPBusinessSuitewithlicenses,associatedmaintenance,andservices. Wehadaconsistentgo-to-marketstrategy,pricingstructure,andmarketingapproachglobally,whichallowedustode-centralizeourorganizationalstructure.Buttimeshavechanged.
Finance
4
Sales
3
Marketing
2
Master Data
1
Procurement External Workforce
Travel and Expense
HR Analytics
6 8 975
New business models
enable companies to explorenewmarketsandgrow their business.
Distributed Ledgers
enablethedecentralized,secure, direct, digital transfer of values and assets.
Mobile, Internet of Things and Hyper-connectivity
enable immediate access to every “thing”.
Big Data and Machine Learning powered by In-Memory technologies
change how data is being analyzedwithpredictiveanalytics.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
27SAP’s Digital Transformation to Run Simple
Challenges of SAP’s Finance OrganizationSAP’schallengesaretwofold—organizationalandtechnological. One cannot be transformed without the other.
BUSINESS CHALLENGES:
Speed of change
Financeorganizationsmustcopewith the most volatile economic and regulatory environment in decades.Dynamicmarketsoffernew opportunities which need to be pursed quickly before they are gone.
Acquisitions & Mergers
Finance is being asked to drive strategy in a whole new way. After an acquisition, the new entity needs to be integrated into the financeprocessesquicklytorealizeits full potential.
Cost Pressure
Handling tight budgets while being able to support the business, the financeorganizationswanttomove to continuously automated “lights out” processes, event driven and networked with compliance embedded into the processes.
Inflexible Finance & Increasing complex processes
Executivesanddecisionmakersneed to understand the impact of their decisions before they make them with live analysis, predictions, and simulations.
Financial Operations
“Keeping the lights on” with regards toCompliance,Efficiency,BusinessPerformance leads to higher lead qualificationandoptimizedhand-overtosales.Finance’sexisting,disconnected, and often manual processes are no longer acceptable.
TECHNOLOGY CHALLENGES:
Digital Transformation
Bringing in new technologies like Machine Learning, Distributed Ledger Technology, etc
High manual reporting efforts20+ year old rigid core ERP system
Systemwithmanymodificationsand custom reports and enhancements
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
28SAP’s Digital Transformation to Run Simple
Finance’s Transformation ApproachAspartoftheTop10FocusProject“S/4HANA: Renew our Financial Core Project,” the Finance initiative will support by designing a new Lead-to-Cash process and system architecture, providing a real-time environment along the steering dimensions andcoreprocesses,andtransformingallcoreprocessestoonestandardizedandunifieddataarchitectureforcustomer,material,andorganization.
TODAY
• High touch event-driven focus
• Complexoperationswithhighly manual processes and various process variants
• Bad data Quality and manual reporting
• Complexsetup• High degree of custom
development• Non-SAP systems used by
acquired companies
Business
Technology
TRANSITION
• Business process redesign• New master data concept
with less G/L accounts, cost centers,profitcenters
• New steering model definition
• SetupofagreenfieldS/4HANA system
• IntegratewithCentralFinance to the legacy ERP system
TOMORROW
• Move all legal entities to the new S/4HANA system
• Enable low touch business modelswithextremelyhighF&A automation level
• Shutdown of legacy ERP instance
SUPPORT NEW HIGH-VOLUME BUSINESS
Enable transaction-based billing andautomatedcollections.Flexiblysupport new and changing future business models.
COMPLIANCE
Ensure volume-readiness and increased automation and standardizationofRevenueAccounting processes in the light of new Accounting Standards
INTEGRATE ACQUISITIONS
Allowing one single source of truth by combining legacy ERPs with S/4HANA via Central Finance
NEW STEERING MODEL
Harmonizedsteeringmodel togaintransparencyandefficiencyacross Line of Businesses and product lines to manage growth andprofitability
SIMPLIFY
Setup of a new Chart of Accounts with less accounts, massively reducednumberofcostandprofitcenters.Nomodificationstothestandard system.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
29SAP’s Digital Transformation to Run Simple
Business BenefitsWithourrecenttechnologyshiftwearenowadoptingastandardizedandautomatedS/4HANACoresystem.WithBusinessProcessRedesignwequestionedallourexistingprocesses.Whilealways having our focus on our end users and our customers, and the business challenges they arefacing,wedefinedoursystemlandscapeaccordingly.
CFO
Agile adaption of order to cash process to support new business models
Real-time business steering with the Digital Boardroom based on S/4HANA. More accurate prediction of business development
End-to-end process coverage with integrated business systems reduce process costs and increase visibility of process performance.
Proactive process & data monitoring to ensure highest compliance standards
CORPORATE FINANCIAL REPORTING
Standardizedmonth/quarterendclosing processes, automated tasks and increased quality with the Financial Closing Cockpit
Data consistency across Finance and HR by integrating S/4HANA andSucccesFactors.Simplifiedand automated bonus and vacation accrual management
Significantlysimplifiedclosingprocess with Central Finance consolidating various ERP solutions
AdoptionofnewIFRS15accountingstandardswithlessbookingeffortand less manual checks
Automatedaccrualandfixedassetaccounting process reduces manual effortwithinmonth/quarterendclosing
COMMERCIAL DEAL SUPPORT
Low Touch Order-to-Cash process including:
• automated order management, • proactive deal health monitoring, • automated contract handling and • standardizedbillingforalldeal
motions
Real-time view on order processing volume and critical deals
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
30SAP’s Digital Transformation to Run Simple
SHARED SERVICE CENTER
FINANCIAL PLANNING AND ANALYSIS/ CONTROLLING
TREASURY
Planning, Reporting, Simulations, and Predictive Analytics in ONE system with real-time data, great visualization,andusability
Valuedriverbasedfinancialsteeringconcept
Direct access to the Universal Journal with real time information allow simple and reliable reporting
The Universal Journal supports thedefinitionofattributesneededfor our new steering dimensions, aswellasthereductionofProfitCenters from 130k to <5k.
Lessmanualreportingeffortallowsmore time for business partnering based on profound business analysis
Universal Journal helps to reduce 70%ofreconciliationeffortsbetweenFIandCO
Machine Learning capabilities automate accounts receivables process matching open invoices to received customer payments
Faster processing time of ticket handling as enterprise search enablessmartresolutionfinding
Improveoperatingcashflowdue to real-time cash & liquidity management
State-of-the-art liquidity planning and forecasting, automated compliance, and a single version of truth
Real-time overview and responses to cash requirements, detailed guidance and planning for cash operations, and dynamic liquidity forecasting
Simplify and automate cash account analysis and liquidity management to reduce banking fees and borrowing costs
Drill down into global bank balances, cash positions, and individual transactions to gain more detailed insights
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
31SAP’s Digital Transformation to Run Simple
Enabling TechnologySAPS/4HANAaskeyenablerforSAPtobecomeaDigitalEnterprise:
+10PP improvement in forecast accuracy
GLOBAL BENEFITS ACROSS ALL ROLES:
50% more time available for high quality deal support
70% reduction of reconciliationefforts
95% reductionofprofitcenters in new steering model
97% electronic bank statements automatically posted
5 DAYS reduction of quarter-end close process including group consolidation
50% efficiencygain with Fiori
50% more work time available for performance management and business partnering
Customer Experience
Workforce Engagement
IoT & Supply Chain
SpendManagement
Process Redesign
Legacy ERP
Legacy ERP
Non-SAP ERP
Legacy ERP with massive complexity The Journey to the New Digital Core The Digital SAP is Cloud Enabled
Starting Point Transition Tomorrow
Process Redesign
AribaFieldglass
SuccessFactorsConcur
SAP CloudPlatform
AribaFieldglass
SuccessFactorsConcur
SAP CloudPlatform
Industry
Security
SAP Cloud PlatformSAP HANA
Blockchain
MachineLearning API’s
AribaFieldglass
SuccessFactorsConcur
SAP CloudPlatform
IoT & Supply Chain
Customer Experience
Workforce Engagement
SpendManagement
Industry
Security
SAP Cloud PlatformSAP HANA
Blockchain
MachineLearning API’s
SAP
SAP
Aqui
sitio
ns
SAP
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
32SAP’s Digital Transformation to Run Simple
Learn how Procurement at SAP simplifies processes powered by SAP Ariba SolutionsInafastgrowingcloudeconomy,weneedtosecureprofitabilityby transforming our tactical procurement function towards a holistic strategic function. Thistransformationcomesinfourdimensions:
Procurement
5
Finance
4
Sales
3
Marketing
2
Master Data
1
External Workforce
Travel and Expense
HR Analytics
6 8 97
Aribaneedstobefullyintegratedintotheglobalprocurementorganization:
User-friendly Cloud Solutions
Big Data Advanced Analytics
Connected Business Networks
Learning Systems Artificial Intelligence
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
33SAP’s Digital Transformation to Run Simple
Challenges of SAP’s Procurement Organization
Monitor and Manage • Lack of transparency across
entire process• “WhereisthestuffIhave
ordered?”
Contract and Procure • Too many steps, clicks, windows,
and interfaces• High training need • Missing mobile solution
Invoice and Pay • Complexprocess• Multiple entry points, systems,
and tools
EMPLOYEE
PROCUREMENT'S VALUE CHAIN:
Contract and ProcureSource and Negotiate Invoice and Pay Monitor and Manage
Invoice and Pay • Manual invoicing steps • High operative workload
Source and Negotiate • Complexdiscovery,pre-qualificationandonboarding
• Limited competition among suppliers
Monitor and Manage • Limited visibility on purchasing
spend & budget adherence • Missing entry point to gather
transparency about spend
Contract and Procure • Unstructured collaboration with
suppliers• Multiple systems, multiple
contracts with suppliers
PURCHASER
Invoice and Pay • High system and integration
costs
Source and Negotiate • High risk due to lacking supplier
information
Monitor and Manage • AdditionalefforttocalculateKPI’s
Contract and Procure • Compliance risks
CIO
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
34SAP’s Digital Transformation to Run Simple
Transformation ApproachHow can we help deliver double-digit cost reduction while at the same time improving our reputation as a function that delivers value beyond cost cutting?
Take end-to-end process responsibility
for all parties involved in the entire source-to-pay process
Leverage purchasing power
and drive sustainable savings across all geographies
Deliver best-in-class procurement processes
and highest possible service levels to internal customers
Be a value enabler
to our Businesses and a fair partner to our suppliers
GLOBAL CHALLENGES ACROSS ALL ROLES:
Lacking cloud capabilities
Lacking collaboration with suppliers
Inefficientsource-to-pay process
Lacking monitoring capabilities
Highlycomplexmanual processes
Low customer satisfaction
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
35SAP’s Digital Transformation to Run Simple
Benefits of SAP’s Procurement Organization
Contract and Procure • Amazon-likebuyingexperience
with Guided Buying • One-Stop-Shop incl. Spot Buy• Zero-training required
Invoice and Pay • One single point of entry
EMPLOYEE
PROCUREMENT'S VALUE CHAIN:
Contract and ProcureSource and Negotiate Invoice and Pay Monitor and Manage
Invoice and Pay • 60% increase in invoice
automation• Reduced operative workload
Source and Negotiate • Quick and easy supplier discovery,pre-qualification and onboarding
• Efficiencyandcostsavings with online bidding
Monitor and Manage • Dashboards and reports provide
complete visibility into spend and risks
• Accurate real-time budget visibility through deep integration with S/4HANA
Contract and Procure • Advanced collaboration
capabilities with suppliers• Consolidation of contracts
drives cost savings• Incorporatingcontractsinto
purchasing and invoicing drives compliance
PURCHASER
Monitor and Manage • Mobile end-to-end visibility into
the whole purchasing lifecycle• Quickly get the goods &
services they need
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
36SAP’s Digital Transformation to Run Simple
Enabling TechnologyS/4HANA centric application landscape seamlessly intergrated enterprise end-to-endpurchasingprocesses:
6-DIGIT € savings through cloud-based delivery
6,300+ suppliers enabled
96% invoice quality
Largest Business Network with 2.5+M partners
50% manual invoices eliminated
GLOBAL BENEFITS ACROSS ALL ROLES:
• Improvecontrolandcompliancewith integrated contract manager
• Integratedsupplierlifecycleandperformance management
• Lower risk with up-to-date supplier information
• Out-tasked infrastructure for suppliercollaborationtooneEDI
• Lower TCO – Fully integrated Cloud solution into S/4HANA
CIO
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
37SAP’s Digital Transformation to Run Simple
Learn how SAP simplifies Travel and Expense Management powered by SAP ConcurFrequentbusinesstravelisexhausting.Whatmakesitevenworseisthefactthatonce youreturnhome,thejourneydoesn'tendthere.AtSAPwenoticedthatourpeoplewerehavingahardtimeclaimingtheirtravelexpenses—sowestartedbrainstormingwaystomakelifeeasierforthem. One important step was moving the entire booking to reimbursement process to the cloud.
Advantageofcloudbasedtravelandexpensemanagement:
Travel and Expense
6
Finance
4
Sales
3
Marketing
2
Master Data
1
Procurement External Workforce
HR Analytics
8 975
ConcurTravelandExpenseManagementneedstobefullyintegrated intotheglobalprocurementorganization:
End-user
Direct and mobile access to T&E management with immediate processingandminimumeffort
GPO
StandardizedandcompliantE2Eprocessingoftravelandexpenserequests with low-touch monitoring and reporting
Technology
Applications are seamlessly integrated into the Digital Core andcanbehostedefficiently
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
38SAP’s Digital Transformation to Run Simple
Challenges of SAP’s Travel & Expense ManagementTRAVEL & EXPENSE MANAGEMENT’S VALUE CHAIN:
Execute On Trip Activities
Execute Pre Trip Activities
Claim Expenses
Audit and Monitor
Reimburse Expenses
Claim Expenses • NotintuitiveUI,toomanysteps• Nomobileexpenseclaims
”on the go”
Audit and Monitor • Missing transparency
Reimburse Expenses • Informationnotclear• Long cycle time for the
overall process
Execute Pre Trip Activities • Multiple places & systems to
search for information
Execute On Trip Activities • Manual handling of
itinerary changes• Lack of information• Missing mobile solution
EMPLOYEE
SHARED SERVICE CENTER
Claim Expenses • Missingstandardization• High operative workload
Audit and Monitor • Multiple systems to operate• Complexprocess• ComplianceIssues
Reimburse Expenses • Missing transparency
Execute Pre Trip Activities • Missingstandardizationcausesadditionalefforttosupportmultiple travel scenarios
Execute On Trip Activities • Missingstandardization• Limited reporting on preferred
travel behavior
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
39SAP’s Digital Transformation to Run Simple
Transformation ApproachThejourneytodigitaltransformationstartsbyempoweringeveryemployeetomake goodbusinessdecisions.Oneimportantpieceinthispuzzleisprovidingfulltransparencyonexpenses,andtobeabletomanageitproactively—withtheclickofabutton.
Audit and Monitor • Insufficienttransparencyon
T&E costs
Reimburse Expenses • Highly manual error-prone efforts
Execute Pre Trip Activities • Limited reporting on booking behaviorandexpensecorrelation
Claim Expenses • Missing transparency across
complete process• Compliance risks
CFO
GLOBAL CHALLENGES ACROSS THE VALUE CHAIN:
No end-to-end travelexperience
Complexbookingexperience
Missing efficiency
Missing mobile capabilities
Complexcustombuild processes
Non-intuitive interfaces
Integrated booking tool
Handle the entire end-to-end T&E process from pre trip bookings to reimbursement with one tool
Mobility included
Claimexpensesonthego with one intuitive, easy to use mobile interface
Cloud solution
Applications are seamlessly integrated into the Digital Core, assuring compliance
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
40SAP’s Digital Transformation to Run Simple
Benefits of SAP’s Travel & Expense ManagementTRAVEL & EXPENSE MANAGEMENT’S VALUE CHAIN:
Execute On Trip Activities
Execute Pre Trip Activities
Claim Expenses
Audit and Monitor
Reimburse Expenses
Claim Expenses • Mobile&web-basedUIs• User-friendly and intuitive• Expensedataflowsautomatically
into Concur
Audit and Monitor • Transparency across
complete process
Reimburse Expenses • Transparency on process• Quick reimbursement due to
streamlined processes
Execute Pre Trip Activities • E-receipts & card integration reducemanualefforts
• Full integration of booking tools
Execute On Trip Activities • Electronic receipt capture
via mobile• Itinerarychangesreflected
immediately
EMPLOYEE
SHARED SERVICE CENTER
Claim Expenses • Reducedeffortsduetosystem-
enforced policy compliance • Single system to operate
Audit and Monitor • Single system to operate• Built-in compliance• Better scale through
sampling checks
Reimburse Expenses • Transparency across
complete process
Execute Pre Trip Activities • Standardizedprocessesto
simplify support to traveler
Execute On Trip Activities • Standardizedprocesses• Enhanced reporting on
travel behavior
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
41SAP’s Digital Transformation to Run Simple
Audit and Monitor • Analyzecompanywide
travel behavior• Reportingoncostoptimization
measures• Highest security standards (ISO,SOC/SSAE16,PCI)
Reimburse Expenses • Reduced error handling
complete process
Execute Pre Trip Activities • Enhanced reporting on booking behaviorandexpensecorrelation
Claim Expenses • Transparency on the overall
process to ensure consistency and compliance
CFO
GLOBAL BENEFITS ACROSS THE VALUE CHAIN:
End-to-end travelexperience
Simplifiedtravel booking experienceviamobile
IncreasedefficiencyinT&Emanagement
Create / capture expensesonmobile devices
Globalizedbest practice processes
85% user satisfaction
Enabling TechnologyS/4HANA-centric application landscape seamlessly intergrates enterprise end-to-endpurchasingprocesses:
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
42SAP’s Digital Transformation to Run Simple
Learn how SAP simplifies External Workforce Management powered by SAP FieldglassExternalWorkforcemanagementisundergoingasignificanttransformation:
External Workforce
7
Travel and Expense
6
Finance
4
Sales
3
Marketing
2
Master Data
1
Procurement HR Analytics
8 95
ManagingtheExternalWorkforcerequiresacloud-based,easy-to-use,mobilesolutionthatoffersfullend-to-endtransparency.Inordertoachievethat,SAPFieldglassneedstobefullyintegratedintotheglobalprocurementorganization:
Growing government regulationsforexternalworkforce management
Usability & simplicity have become critical success factors
Increasingdemandtomanageexternal workers end-to-end
Increasingdemandforself-service capabilities
Growingsignificanceof mobile devices for business applications
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
43SAP’s Digital Transformation to Run Simple
Challenges of SAP’s External Workforce Management
Pay • Little transparency
on compliance and the rules of engagement
Report • DifferentReportsfor
several requests
Search • Various tools • Not intuitive. bad user interface
Order • Cumbersome third party
hiring processes
EMPLOYEE
EXTERNAL WORKFORCE MANAGEMENT’S VALUE CHAIN:
OrderSearch Pay Report
Pay • High number of
incorrect invoices
Search • DifficultE2Esupplier
collaboration
Report • Missing transparency across the
complete process
Order • Long processing time till
actual hiring
PURCHASER
Pay • Compliance risks• Highly manual error-proneefforts
Search • Insufficienttransparencyon
company’s third party hiring
Report • Insufficienttransparencyacross
entire third party costs
Order • Missingstandardization
CFO
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
44SAP’s Digital Transformation to Run Simple
Transformation ApproachWeneedtoinvestintechnologiesthatprovidevisibilityintothetotalworkforceinordertodrivemorestrategichiringdecisions,throughaseamlessexperienceonalldevices.
GLOBAL CHALLENGES ACROSS THE VALUE CHAIN:
Lacking cloud capabilities
No mobile solution
High time to hire
Lacking monitoring capabilities
Missing standardization
Low employee and supplier satisfaction
HIGH LEVEL PROCESS:
OrderSearch Pay Report
Search for the right candidate with the right skills and the right availability
Improveuserexperiencewith an intuitive and user friendly end-to-end solution
IntegratedAnalyticsandReporting in real-time
Real-time integration of the Digital Core and S4/HANA
Order the candidate and getthefinancialapprovalsfor the order
Manage corporate ExternalWorkforcein anefficientway
Approve worker timesheets and pay the supplier
Manage and approve items using mobile devices
OBJECTIVES:
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
45SAP’s Digital Transformation to Run Simple
Benefits of SAP’s External Workforce Management
Pay • Full transparency on compliance
& rules of engagement
Report • Full transparency on end-to-end
process
Search • Find the right people for the right jobs,basedonscorecardsandevaluations
Order • Reduce cycle time due to
automation & mobile approvals
EMPLOYEE
EXTERNAL WORKFORCE MANAGEMENT’S VALUE CHAIN:
OrderSearch Pay Report
Pay • Cost savings due to rate
adherence and consolidation of contracts
Search • Measure vendor responsiveness• Intuitivevendorqualificationand
rate comparisons
Report • Identifyinternalbottlenecks• Real-time understanding of
engagement status
Order • SLA adherence• Compliance to corporate policies
PURCHASER
Pay • Compliance with corporate
policies • Get rid of paper-based invoices, increaseefficiency
Search • Improvecollaboration
with Suppliers• Shut-downofdecentralized
applications
Report • Insightintobudgeted,actual,
and forecasted spend
Order • Mitigate co-employment risks• Analyzeandenforce
program budgets
CFO
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
46SAP’s Digital Transformation to Run Simple
GLOBAL BENEFITS ACROSS THE VALUE CHAIN:
Cloud-based delivery,fastROI/ low TCO
End-to-end Mobile solution
Reduce time to hire by 20%
Transparency throughout the process
Highly automated operational processes
Increasedemployee and supplier satisfaction
Enabling TechnologyS/4HANA-centric application landscape seamlessly integrates enterprise end-to-endworkforceprocesses:
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
47SAP’s Digital Transformation to Run Simple
HR
8
External Workforce
7
Travel and Expense
6
Finance
4
Sales
3
Marketing
2
Master Data
1
Procurement Analytics
95
Learn how HR at SAP Drives employee engagement to the next level powered by SAP SuccessFactors Changeisthenewnormal.Allorganizationsareexperiencingit,andmanyCHROsareseeingadramaticshiftinHRfromdeliveringtransactionalexcellencetobecomingarchitectsoftransformation.
Inordertoliveuptotheseexpectations,SAPHRneedsto:
Provide access to HR processes anywhere, anytime, on any device
HRservicestobeofferedtoemployees and managers in a very simple and easy to consume way
Make use of Digital Technology
Continuous HR process and system innovations to drive people engagement & HR processeffectiveness
Be compliant with legal and data protection requirements across the globe
HR has to ensure legal compliance in fast growing international businesses
ThenewworldofworkoperatesdifferentlyandhowworkgetsdoneinHRischanging:
• HRmustdeliver"experiences”toprospectivenewhires and employees that match the best customer experiences.
• HRisexpectedtodrivemeasurablechange,reportingonimpactnotjustactivity.
• HRmustbefluentindataanalyticsandpredictoutcomes tied to the business strategy.
• Solutionsareexpectedtobeintegratedwithfinanceand other business processes.
• Simplificationisthekeytosuccessaswenavigateanever-increasingworldofcomplexityandchange.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
48SAP’s Digital Transformation to Run Simple
HR’s ChallengesHR’S VALUE CHAIN:
Administrate Workforce
Attract & Select Workforce
Reward & Recognize Workforce
Develop & Retain Workforce
Exit Workforce
EMPLOYEE
Reward & Recognize Workforce • Rigid feedback processes
Develop & Retain Workforce • Lackofpersonalizedtraining
activities • Noflexiblecollaborative
environmentExit Workforce • Limited ability to stay in touch
with SAP
Attract & Select Workforce • No social enterprise to discover
and connect
Administrate Workforce • No innovative HR Self Services• Multiplecomplexuserinterfaces
MANAGER
Reward & Recognize Workforce • Lack of analytics to address
needs of gloabl, diverse workforce
Develop & Retain Workforce • NoholisticHRserviceoffering
from recruit to retire
Exit Workforce • No ability for early warning signals
Attract & Select Workforce • No holistic solution to manage internalandexternalworkforce
Administrate Workforce • Complexlocalprocesses/tools• Divergentexpectationsof
millenials vs the ‘old guard’
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
49SAP’s Digital Transformation to Run Simple
HR
Reward & Recognize Workforce • Handling of sensitive data for
86.000+ employees
Develop & Retain Workforce • Lack of tools to manage
Talent Development• Leadership Readiness for the
digital ageExit Workforce • Noabilitytopredictfluctuation• Noefficientwaytopushjob
postings to alumni
Attract & Select Workforce • Demanding talent market• Lack of tools to support recruiting
of Talents via all sourcing options
Administrate Workforce • Need to service a large number of
leaders across multiple locations
GLOBAL CHALLENGES ACROSS THE VALUE CHAIN:
Fragmented system landscape
Lacking data security and authorizations
Lack of alignment between Finance and Sales
Limited analytical insights on HR data
HRWorkforceManagement Plan not linked to overall SAPfinancialplan
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
50SAP’s Digital Transformation to Run Simple
Transformation ApproachWhatwillthedigitaltransformationofHRlooklike?AtSAPweforeseedeeper,broader collaboration between HR and other business areas to improve talent management—forexample,byidentifyingpocketsofexcellenceandplanningforsuccession. HR needs to link and strategically leverage the entire workforce—both employeesandcontractors—topowerspecificbusinessresults.
HR needs to boldly embrace fully integrated, enterprise-level HR solutions that harness digital technologies which unify data, simplify and accelerate HR analytics and core processes, and provide real-time visibility into operations, the workforce, and costs.
Business Process Redesign
Across all Lines of Business.
Analytics
Based on Cloud Make use of SAP
SuccessFactors and integration to other Core
Applications via Cloud Platform
Put People Experience at the Center
Master Data Standardization
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
51SAP’s Digital Transformation to Run Simple
HR’s Business BenefitsHR’S VALUE CHAIN:
Administrate Workforce
Attract & Select Workforce
Reward & Recognize Workforce
Develop & Retain Workforce
Exit Workforce
MANAGER
Reward & Recognize Workforce • Reducedreportingeffortsby
3 days per month
Develop & Retain Workforce • 1.3 million learnings were
delivered in 2016
Attract & Select Workforce • 15-20%lesseffortfor
standard tasks
Administrate Workforce • 50% lower costs for accrual and
payroll administration with noadministrativeeffort
EMPLOYEE
Reward & Recognize Workforce • 89% prefer a continuous
dialogue with their managers over annual reviews
Develop & Retain Workforce • 100% of learnings delivered in
2016 can be consumed on mobile
Exit Workforce • Alumnis from more than 80countriesjoinedour Alumni network
Attract & Select Workforce • 92%ofcandidateslikethejobsearchandapplicationexperience
Administrate Workforce • Simple and easy to use
SAP Fiori interface
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
52SAP’s Digital Transformation to Run Simple
6,36,5
6,3
7,0 6,9
7,5
2006 2008 2010 2012 2014 2015 2016
7,8
HR
Reward & Recognize Workforce • Shortened compensation
planning cycle from 9 to 3 weeks
Develop & Retain Workforce • Real-time steering based on one
source of truth for all HR and Finance master data
Exit Workforce • 93.7% employee retention
Attract & Select Workforce • 25,000ExternalWorkers
securely managed
Administrate Workforce • 100% Compliance for all HR and
Finance accrual processes
GLOBAL BENEFITS ACROSS THE VALUE CHAIN:
78% business health cultureindex
57% leadership trust reached
85% employee engagementindex
33% reduction in administrative tasks
93.7% employee retention
SAP HR CUSTOMER SATISFACTION SCORE OVER TIME:
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
53SAP’s Digital Transformation to Run Simple
Enabling TechnologyTransformationofSAP’son-premiseHRLandscapetoacloud-basedsolutionportfolio:
Administrate Workforce
Attract & Select Workforce
Reward & Recognize Workforce
Develop & Retain Workforce
Exit Workforce
HRCloudPortfolioatSAPHR:
• Recruiting• Onboarding• Contingent WorkforceMgmt(SAP Fieldglass)
• Performance & Goals
• Succession & Development
• Learning
• OrganizationalManagement
• People and Transactions
• Absence Management
• HR Shared Services
• Predictive Analytics• Payroll Processing• Compensation• Benefits
• Resumee/ Job Matcher (in Beta Test)
• Learning Recommendations (in Beta Test)
• Social Partner Approvals
• Semos Survey Rocks
• Fit@SAP
• Social Partner Approvals
• Enterprise Jungle Alumni
• Semos JpbPts• SAP Stock
Purchasing
SAP Cloud Platform
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
54SAP’s Digital Transformation to Run Simple
Analytics
9
HR
8
External Workforce
7
Travel and Expense
6
Finance
4
Sales
3
Marketing
2
Master Data
1
Procurement
5
Learn how SAP streamlines enterprise analytics to achieve steering excellence in the digital ageThe digital age is changing the game when it comes to steering a company. Speed in decision making matters now more than ever.
How can we survive in such disruptive times? The ability toconstantlyreadjustyourpathforwardisessential.Everycompanyhasastrategythatisreflectedinabusinessplan,brokendownintodefinedobjectives.WesetgoalsandKPIstomeasuretheirfulfillment.Meanwhile, business processes like Marketing, Sales, and Finance produce tons of data that is being captured inITsystems,readytobeaggregatedandanalyzed.
So nowadays the big problem in many companies is how to bring together data and strategy in a seamless way—withouttheneedfortwenty-fiveExceldocs
and fourty-two systems to bring it all together. Not to mention waiting two weeks to have a report ready for management, so they can then make a decision based on data that's already outdated. That’s a reality many companiesarefacingtoday.WhattheyneedistobeabletoseamlesslychecktheirKPIsagainsttherespectivedata(frombothinternalandexternaldatasources)inorder to evaluate progress compared to the company's overall strategy. And at the same time they need to be abletopredictaforecast,adjustcourse,andrefocus—allin real time.
What is Needed… …vs. Usual Reality
Company StrategyMidLongTermBizPlanShortTermBizPlan
ObjectivesGoalsKPI
Continuous check of plan
vs actual
Forecast and predict
Sem
antic
MeasuresAggregation
Operational Rep. OperationalBizRules
ITSystemsData, Processes
Company StrategyMidLongTermBizPlanShortTermBizPlan
ObjectivesGoalsKPI
MeasuresAggregation
Operational Rep. OperationalBizRules
ITSystemsData, Processes
Sem
antic
Sem
antic
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
55SAP’s Digital Transformation to Run Simple
Transformation ApproachAt SAP we are currently facing the challenges of tranforming our business into a cloud company. This means facing holistic, cross-functional questions which cannot be answered with separated systems, separated information, and separatedKPIsfromdifferentlinesofbusiness.
Weidentifiedseveralissuesweneededtoaddressfromboththeprocessandtechnologyside:
Standardize KPI definition and dimensions
Single Source of Truth
Governed, federated system approach = one analytical platform
Cascade the steering logic into to company
from the top to the bottom
Ensure data consistency
S/4HANA at the core
Inmemorytechnologyallowsforon-the-flyreporting
Avoid redundant und duplicative work
by reusing analytical assets and views.
Analytics Cloud
as the analytics platform running on our cloud platform
PRO
CES
STE
CH
NO
LOGY
Acrossthecompanydimensionshavetobeharmonized.OtherwisewecannotensurethatpeoplebothatthetopandacrossthecompanytalkaboutthesamethingwhentheylookatthedifferentKPIsintheorganizationoracrossthedifferentdimensions.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
56SAP’s Digital Transformation to Run Simple
SAP had long employed a variety of small analytics groupswithinthecompany.One,calledInsight-DrivenMarketing, focused on marketing analytics. Other groups existedwithinFinance,HumanResources,andSales.There was relatively little contact and collaboration among these groups. However, this approach often resultedindifficultiesconsolidatingreportsandresultsacross functions and units.
Byfall2014,SAPexecutivesagreedthatamoreenterprisefocusandaunifiedanalyticsorganizationwere necessary. Not only could these consolidation problems be addressed, but the company could also employ more innovative and predictive analytics capabilitieswithacombinedorganization,andrespondto the challenges and opportunities of big data. So the SAPEnterpriseAnalyticsorganizationwascreated.
Bringingthesede-centralizedanalyticalgroupstogetherto work as one, while also informing a singular technical platform as their single source of truth will be bearing fruit shortly. Enterprise Analytics recently launched a cross-business program called “The Digital Boardroom,” which integrates real-time, cross-business metrics for a full business view that SAP will use internally as well as bring to market through their co-innovation approach.
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
57SAP’s Digital Transformation to Run Simple
The Digital BoardroomTheDigitalBoardroomisouranswertomanagingdigitaltransformation.Itcreatesfulltransparencyacrossthecompanyinreal-time.IthelpstocreatebusinessimpactfueledwithAnalytics—from the boardroom to every end user.
The Digital Boardroom is the top notch superior SAP analyticssolution,bringingtogetherallthedifferentinformation in aggregate fashion across the company—beitHR,sales,finance,orourportfolioexternaldata.Executivesgetaveryaccurateoverviewonhowallofourmarket units are performing, but at the same time can go down into every level of detail.
Inthepreviousofflineformats(e.g.Powerpointdocuments)itwouldbeanextremelycumbersomeandcomplexdocumentconsistingofhundredsofslides.Wecannowproducearichsetofcapabilities,andhave
online real-time reporting, resulting in a system that executivescanreallyinteractwith.
At the click of a button, board members can see the entirepipelinebrokendownintothedifferentregions,including correpsonding growth assumptions and other forecasts.
Withthispowerfultool,weatSAPdefinehowwewanttosteer the company. And then we can cascade that down into our business units.
Board and Senior Management
Digital Boardroombased on SAP Analytics Cloud
Dashboarding cascaded from the Boardroom
Operational Re-porting
MiddleManagement
Operational Level
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
58SAP’s Digital Transformation to Run Simple
HR• Analyzeeffectiveness
of recruiting programs• Analyzeand
reduce attrition
SALES• Access to real-time
customer analytics and sales data
• Insightsintopipelineanywhere, on any device
• Predictive analytics and insight to increase chances of winning
MARKETING • Createeffective
marketing campaigns, using automated nurturing, customer insights and segmentation
• Reduce cost through automation
• Generate more qualifiedleads
FINANCE• Enable steering in
real-time• Run predictive
simulations
Our efforts are already paying off
ExemplaryBusinessUnitBenefits:
Global,cross-functionalachievements:
Real-time insights from senior management down to operational levels
Efficiencyindeliveringanalytical assets
Consistency of steering information throughout the company
Trusted data source
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
59SAP’s Digital Transformation to Run Simple
Want to learn more? Our Run Simple initiative relies on quality feedback—so please don't hesitate to reach out to us with your questions and ideas. Also, if you are keen to learn more, we’re happy to provide you with additional information about our programs.
Feel free to contact us at [email protected]
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