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Lars Olson, SAPMay 21, 2019
Design to OperateIn the Intelligent Enterprise
© 2019 SAP SE or an SAP affiliate company. All rights reserved.
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The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and itsdistributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation orwarranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warrantystatements accompanying such products and services, if any. Nothing herein should be construed as constituting an additionalwarranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document orany related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, andfunctionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reasonwithout notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, orfunctionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differmaterially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and theyshould not be relied upon in making purchasing decisions.
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The Digital Era is evolving into The Intelligence Era
ENABLING TECHNOLOGIES
CUSTOMER VALUE CREATION
• Mobile & Smartphoneubiquity
• Cloud Computing• Social Networks• Big Data
Cloud, Mobile & Big Data2000s - 2010s
DigitalTransformation
• Widespread PC adoption• Broadband Internet• ERP and business
process technologies
Client Server & Internet1990s - 2000s
Business ProcessAutomation
Mainframe & PCs1960s – 1980s
• Transistors & siliconrevolution
• Large scale MainframeComputing adoption
• Emergence of PC’s• Plant floor automation
IndustrialAutomation
• Machine learning (ML) andartificial intelligence (AI)
• Internet of things (IoT) anddistributed computing
• Blockchain
Intelligent Technologies2010s - 2020s
IntelligentEnterprise
4CUSTOMER© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
The Intelligent EnterpriseThe foundation of a Digital Supply Chain
IntelligentTechnologies
IntelligentSuite
DigitalPlatformAI
Machine LearningAnalytics
IoT
Data Management
Cloud Platform
Network & SpendManagement
PeopleEngagement
Digital Core
Manufacturing &Supply Chain
Customer Experience
The Intelligent Enterprisefeatures 3 key components:
Intelligent Suite
Digital Platform
IntelligentTechnologies
1
2
3
7
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The Intelligent EnterpriseKey End-to-End Processes
IntelligentTechnologies
IntelligentSuite
DigitalPlatformAI
Machine LearningAnalytics
IoT
Data Management
Cloud Platform
Network & SpendManagement
PeopleEngagement
Digital Core
Manufacturing &Supply Chain
Customer Experience
7
Lead to Cash
Total Workforce Management
Design to Operate
Source to Pay
6CUSTOMER© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Design to Operate in the Intelligent EnterpriseKey Differentiators
IntelligentTechnologies
IntelligentSuite
DigitalPlatformAI
Machine LearningAnalytics
IoT
Data Management
Cloud Platform
Network & SpendManagement
PeopleEngagement
Digital Core
Manufacturing &Supply Chain
Customer Experience
Design to OperateKey differentiators:
Intelligence built intobusiness processes
Digital Twin alongvalue chain
Seamless Integration
1
2
3
7
Asset Centralfor all of IES4
End to End Visibility5
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Assets
Customers
Manufacturers
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Top floor wants the Connected Supply Chain but... continues to organize in departmental silos
Manufacture OperateDesign Deliver
Plan
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Digital Supply ChainConnect Digitally to Perfect Reality
Assets
Suppliers Customers
Manufacturers
Logistics Logistics
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9CUSTOMER© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital Supply ChainConnect Digitally to Perfect Reality
Assets
Suppliers Customers
Manufacturers
Logistics Logistics
Manufacturers
Assets
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HANNOVER MESSE April 1–5, 2019
2019 Design to Operate Showcases!
SAPPHIRE NOW May 7–9, 2019 Orlando, Florida
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2019 Design to Operate Showcase Videos!
https://www.youtube.com/watch?v=vZhpO1G7_hw https://www.youtube.com/watch?v=gnpQ-k24XYM
https://www.youtube.com/watch?v=gnpQ-k24XYM https://www.youtube.com/watch?v=oeUqq4vIJAM
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Procure Manufacture (subassemblies)
Sell Manufacture (finished product) Deliver
Operate
Create masterproduction schedule.
Receivesubassembliesinto warehouse.
Schedulesubassemblyproduction.
Producesubassemblies and
track progress.
Receive procuredcomponents into
warehouse.
Receivefinished productinto warehouse.
Plan transport, pick,pack, and load product
for delivery.
Receive assetmaster data andonboard asset.
Monitor assets with IoT data, performanalysis, predict asset failure.
Design
Plan supply fornew/changedcomponents.
Manage and trackinbound delivery.
Procure components tobuild subassemblies.
Registerserialized finished
product.
Plan assetmaintenance.
Plan
Perform and trackoutbound transportation
and receive proof ofdelivery.
Decommissionasset.
Receive customer feedback– define requirements and
system concept fornew/changed product.
Hand over tomanufacturing and service
to manage BOM androuting.
Plan demand fornew/changedcomponents.
Create product design, earlycost estimates and master
data for new/changed product.
Schedulefinished product
production.
Produce finishedproduct and track
progress.
Perform inspection,maintenance, and
repair.
Receive customersales order.
(assemble to order)
Request productimprovement.
Design to operate (overview)
13CUSTOMER© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Procure Manufacture (subassemblies)
Sell Manufacture (finished product) Deliver
Operate
Create masterproduction schedule.
Receivesubassembliesinto warehouse.
Schedulesubassemblyproduction.
Producesubassemblies and
track progress.
Receive procuredcomponents into
warehouse.
Receivefinished productinto warehouse.
Plan transport, pick,pack, and load product
for delivery.
Receive assetmaster data andonboard asset.
Monitor assets with IoT data, performanalysis, predict asset failure.
Design
Plan supply fornew/changedcomponents.
Manage and trackinbound delivery.
Procure components tobuild subassemblies.
Registerserialized finished
product.
Plan assetmaintenance.
Plan
Perform and track outboundtransportation and receive
proof of delivery.
Decommissionasset.
Hand over tomanufacturing and service
to manage BOM androuting.
Plan demand fornew/changedcomponents.
Schedulefinished product
production.
Produce finishedproduct and track
progress.
Perform inspection,maintenance and
repair.
Receive customersales order.
(Assemble to Order)
* Represent product families, see subsequent slide for detailed material list
Request productimprovement.
• SAP S/4HANA*• SAP Engineering Control Center• SAP Asset Intelligence Network
• SAP Integrated Business Planning*• SAP S/4HANA*
• SAP Integrated Business Planning• SAP S/4HANA* • SAP S/4HANA*
• SAP S/4HANA*• SAP S/4HANA*• SAP Logistics Business Network
• SAP S/4HANA* (EWM**)• SAP Logistics Business Network • SAP S/4HANA*
• SAP S/4HANA*• SAP Digital Manufacturing Cloud*
• SAP S/4HANA* (EWM**)• SAP Digital Manufacturing Cloud*
• SAP S/4HANA* • SAP S/4HANA*
• SAP S/4HANA*• SAP Digital Manufacturing Cloud*• SAP Asset Intelligence Network
• SAP S/4HANA* (EWM**)• SAP Digital Manufacturing Cloud*
• SAP Digital Manufacturing Cloud*• SAP Asset Intelligence Network • SAP S/4HANA* (TM***, EWM**)
• SAP S/4HANA* (TM***)• SAP Logistics Business Network
• SAP Pred. Maintenance and Service• SAP Predictive Engineering Insights
• SAP Asset Intelligence Network• SAP S/4HANA Cloud for intelligent
product design
• SAP S/4HANA*• SAP Asset Manager• SAP Pred. Maintenance and Service• SAP Predictive Engineering Insights
• SAP S/4HANA*• SAP Asset Intelligence Network
• SAP S/4HANA*• SAP Asset Strategy and Performance
Management• SAP Pred. Maintenance and Service
Receive customer feedback– define requirements and
system concept fornew/changed product.
Create product design, earlycost estimates and master
data for new/changed product.
• SAP S/4HANA Cloud forintelligent product design
• SAP S/4HANA*• SAP 3D Visual Enterprise*• SAP Engineering Control Center• SAP Product Lifecycle Costing
Design to operate (overview)
** SAP S/4HANA Supply Chain for extended warehouse management *** SAP S/4HANA Supply Chain for transportation management
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Plan• Holistic view of demand• Balance inventory and service levels• Improve forecast accuracy
Deliver• Improve speed, efficiency and sustainability• Deliver perfect orders consistently and profitably• Increase utilization of warehouse and transportation
Manufacture• Optimize manufacturing processes and minimize waste• Improve collaboration with contractors• Increase agility and responsiveness
Operate• Manage lifecycle of physical assets efficiently and sustainably• Predict and simulate asset behavior• Avoid unplanned downtime
Design• Reduce time to market• Continuously and sustainably innovate• Deliver on customer demand
Digital Supply ChainFrom Design to Operate
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Innovate digital products and services fasterEnable new business practices by managing productand asset intelligence across networks
Institute design excellenceDrive product development based on requirements withan integrated systems engineering approach
Compliant product lifecycle managementImprove collaboration and integrate productdevelopment to be first to market with innovative,sustainable and compliant products
Increase profitability and visibilityLoop back failure and operational analysis from serviceto engineering for design improvement and lowerproduct cost
Connect Digitally to Perfect Reality – DesignBusiness value for R&D/Engineering
8%increase in meetingrevenue goals with clearlydocumented and validatednew product requirements.
17%decrease in time to marketwhere product developmentprojects are managed fromconcept to launch.SAP Performance Benchmarking
SAP Performance Benchmarking
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Connect Digitally to Perfect Reality – PlanBusiness value for Supply Chain
12%fewer days in inventorywith dynamic, frequentlyupdated forecasts.
40%shorter lead times withflexible rules-drivensupply-demand matching.
State-of-the-art business processesEnable new end-to-end business processes, models andrevenue streams
Synchronized planning processesEliminate planning silos through connectedand integrated planning processes
End-to-end visibilityProvide visibility on strategic, tactical and operationallevels across internal and external data
Faster planning cyclesReact faster to changes in the business throughcomplete integration across the supply chain
SAP Performance Benchmarking
SAP Performance Benchmarking
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State-of-the-art business processesLeverage new technologies to identify and enablebusiness processes with highly flexible UI’s
Connected manufacturingEliminate manufacturing silos through a singledata model with connected, integrated processes
Top floor to shop floor visibilityComplete end-to-end visibility on strategic, tacticaland operational levels
Faster more efficient executionImprove throughput, increase quality, and reducewaste
Advanced analyticsLeverage configurable KPI’s to identify processbottlenecks and improve performance efficiency
Connect Digitally to Perfect Reality – ManufactureBusiness value for Manufacturing
8%increase in plan adherencewhere delivery dates areintegrated with materialavailability and real-timemanufacturing conditions.
28%decrease days in inventorywhere manufacturingprocesses are controlledthrough pull-basedproduction schedule.SAP Performance Benchmarking
SAP Performance Benchmarking
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Connect Digitally to Perfect Reality – DeliverBusiness value for Logistics
Balance customer service and delivery costsEnable efficient logistics and order fulfillment processesto increase speed and reduce cost and emissions
Warehouse ManagementOptimize labor, storage, and fulfillment costs
Transportation ManagementReduce costs and carbon footprint and improve service,efficiency, and sustainability
Logistics NetworksCollaborate with logistics partners andimprove fulfillment through visibility and IoT connectivity
93%increase of domesticon-time delivery.SAP Performance Benchmarking
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Connect Digitally to Perfect Reality – OperateBusiness value for Asset Management
17%increase in return onassets where assetmanagement systemsare fully integrated.
79%decrease in accidentfrequency with monitoringof strong safety measuresfor people and assets.
State-of-the-art business processesLeverage new technologies to enable new assetmanagement business processes with highly flexible UI’s
Real-time insightsProvide end-to-end visibility on strategic, tactical andoperational levels
Connected assetsBring together information from operational and businesssystems using IoT for scalable transparency
Prediction and simulationDrive smarter decisions, improve reliability, and reduceoutages and emissions
Collaboration throughout the asset lifecycleShare asset information and collaborate on a cloud-based business network with integrated processes
SAP Performance Benchmarking
SAP Performance Benchmarking
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The Intelligent Digital Supply ChainConnect Digitally to Perfect Reality
Assets
Suppliers Customers
Manufacturers
Logistics Logistics
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Product intelligenceAsset intelligenceCollaborative R&D,
engineering andmanufacturing
ManufacturerOperator
Asset Management, predictivemaintenance and service
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Evolution of the Digital Twin | From Data Repository to Intelligent Orchestrator
Intelligence
Analytics Control Simulation
Model Data Uniqueness Monitor
IntelligentEnterprise
PredictiveEnterprise
ConnectedEnterprise
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Delivering the Customer Experience with SAP Digital Supply Chain
Design Manufacture Deliver Operate
Security Fiori & Mobile
• Leonardo Edge• Devices
Cloud Multi-device
AssetDomainSpecific
ServicesBusinessPartner Services
IoTApplicationEnablement
IoT Services
Leonardo Edge SAP Data Hub
Pipeline EngineHANA
SAP Vora
Cloud Storage
Analytics
Machine Learning
Applications
ReusableBusinessServices
TechnicalPlatformServices
Plan
….Partnerservices
….Partnerextensions
….Partnerapps.
Connecting Things Processing Data Store Data Analyzing Data
Devices
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Asset CentralOne Common Foundation
Asset Central provides acommon master andtransactional data layer, a setof out-of-the-box integrationsto SAP back-end businessand Internet of Thingssolutions and standard basicfunctionalities enablingcommon next generationproduct and asset modelingand management.
Asset CentralA Digital Twin enabler for next generationproduct and asset modeling and management
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SAP’s supply chain solutions digitally connect your entire supply chain,so you can deliver at your best today, while you adapt and continuouslyimprove to reshape how you deliver tomorrow.
With SAP, you can create a digital mirror of your complete supplychain—from design, planning and manufacturing to logistics andongoing maintenance—embedding intelligence from beginning to endand ensuring your customers are central to each and every phase ofyour business.
You get total visibility as products are designed, delivered and deployedby connecting your business processes with real-time data from assets,equipment, customers and suppliers.
Only SAP can deliver all the processes and data with embeddedinnovations like 3D printing, IoT, machine learning, and blockchain intoyour everyday operations. With SAP’s supply chain solutions, you getthe operational visibility and customer intelligence to manage your entiresupply chain digitally and execute flawlessly today, while transformingyour business for the future.
Why SAPConnect Digitally to Perfect Reality
1Customer© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Legal disclaimer
The information in this presentation is confidential and proprietary to SAP and may not be disclosed without
the permission of SAP. This presentation is not subject to your license agreement or any other service or
subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this
document or any related presentation, or to develop or release any functionality mentioned therein. This
document, or any related presentation and SAP's strategy and possible future developments, products and or
platforms directions and functionality are all subject to change and may be changed by SAP at any time for
any reason without notice. The information in this document is not a commitment, promise or legal obligation to
deliver any material, code or functionality. This document is provided without a warranty of any kind, either
express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular
purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a
contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages
were caused by SAP´s willful misconduct or gross negligence.
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 place undue reliance on these forward-
looking statements, which speak only as of their dates, and they should not be relied upon in making
purchasing decisions.