Digital Product Lifecycle Management – SAP’s Strategy & Road Map Dr. Juergen Weiner - SVP S/4HANA Idea – LoB R&D/Engineering, SAP SE St. Leon-Rot 16. April 2019 PUBLIC Agenda • SAP Strategy Intelligent Enterprise • SAP Strategy R&D/Engineering • Highlights • • Demo Design Collaboration combined with CAD Integration • Demo Advanced Variant Configuration with C/4HANA CPQ Integration • Demo Document Management with embedded Machine Learning Wrap-up / Closing © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3 SAP Strategy Intelligent Enterprise The Digital Era is evolving into The Intelligence Era Mainframe & PCs Client Server & Internet Cloud, Mobile & Big Data 1960s – 1980s 1990s - 2000s 2000s - 2010s Intelligent Technologies 2010s - 2020s ENABLING TECHNOLOGIES • Transistors & silicon revolution • Large scale Mainframe Computing adoption • Emergence of PC’s • Plant floor automation • Widespread PC adoption • Broadband Internet • ERP and business process technologies Industrial Automation Business Process Automation • Mobile & Smartphone ubiquity • Cloud Computing • Social Networks • Big Data • Machine learning (ML) and artificial intelligence (AI) • Internet of things (IoT) and distributed computing • Blockchain CUSTOMER VALUE CREATION © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Digital Transformation Intelligent Enterprise 5 Intelligent enterprises elevate employees to focus on higher-value tasks © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6 Next practices driven by an Intelligent Enterprise Capabilities Visibility Focus Agility The ability to collect and connect data that was previously siloed and to recognize unseen patterns The ability to simulate the impact of potential options and direct scarce resources to the areas of maximum impact The ability to respond faster to changes in the marketplace or the business and to pivot business processes toward the right customer outcomes Outcomes Redefine the end-to-end customer experience © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Deliver a step change in productivity Transform workforce engagement 7 SAP Strategy – Deliver the Intelligent Enterprise THE INTELLIGENT ENTERPRISE features 3 KEY COMPONENTS: © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 1 Intelligent Suite 2 Digital Platform 3 Intelligent Technologies 8 SAP Strategy R&D/Engineering LoB R&D/Engineering Portfolio & Project Management Optimize capital investment, IT and R&D project strategy and execution Product Engineering & Development Enable integrated R&D processes across all LOBs with consistent product data for discrete and process industries Efficiency Personalization Smart products Manage, track and handle all dimensions of your Portfolio and Projects effectively Enabling entire Digital Configuration Life Cycle from consumer to manufacturer, Manage complex products with embedded systems approach building the foundation for the digital twin © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Intelligent Product Design Collaborate with all stakeholders, suppliers and outsource partners for fastest innovation cycles Consistent collaboration Integrated Requirements Collaborate real time on product data that is consistent across extended enterprise Capture customer requirements that are integrated with product data ensuring impact and traceability 10 SAP’s overall aim for R&D / Engineering in discrete industries Differentiate by using design data beyond engineering to simulate the business impact of product development on costs, supply chain, procurement, manufacturing, and service to enable fast decision making Strategic Direction Develop an integrated, scalable, and modular PLM suite with a beautiful end-user experience for all industries Embed Intelligence & Innovation in every solution Differentiate by using design data beyond engineering © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 1 2 3 11 Design business process with SAP PLM Idea / Requirements Early Engineering Detailed Design Prototyping Production Service Portfolio and Project Management IPD - Collaboration Early Product Costing 3D-Visualisation Document Management Systems Engineering Systems Engineering Requirement Model Functional Model Logical Model Enterprise Product Structure Manufacturing, Procurement & Supply Chain Service & Maintain Real Time Strategy & Planning Plant 001 Location Model Team Data Management System Model Plant 002 Authoring-Tools Software Electronics Mechanics Folder, Document, Material & E-BOM Statistical Model Sensor & Diagnostics SAP Engineering Control Center © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 12 Design Collaboration & CAD Integration Collaboration with S/4HANA Cloud for Intelligent Product Design Idea / Requirements Early Engineering Detailed Design Prototyping Production Service Accomplish multi discipline collaboration, on actual product data with internal & external partners Achieve full traceability and transparency by linking requirements to product & business data Achieve transparency & efficiency in collaboration with robust workflows that ensures all relevant stakeholders are appropriately informed & have access to right product data Derive better insights from downstream processes & product usage and improve business relationships © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC MRP 14 Demo: Design Collaboration with SAP Engineering Control Center and S/4HANA Cloud for intelligent product design A product change requires that a supplier (design partner) adjusts his design S Manufacturer CAD Engineer Opens ECTR and selects assembly for Design Partner Selects IPD Folder in ECTR and shares design data Add Redlining to 3D Design Informs supplier through workflow Outsourced design is updated by partner Design Partner CAD Engineer Receives task through email and accesses IPD Collaboration Makes necessary changes in CAD (with or without ECTR) Downloads CAD files Uploads changed files to IPD Collaboration Informs Manufacturer’s CAD Engineer through workflow Reconciles overall design with design change done by partner Manufacturer CAD Engineer Uploads changed CAD Files into ECTR © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Reviews Changes in ECTR and updates CAD design E 15 Demo: Share changed BOM information to Co-Manufacturer through S/4HANA Cloud for intelligent product design with BOM redlining S Starts collaboration Import BOM into Collaboration Partner Manufacturing Engineer Log in into collaboration Views BOM BOM Engineer Reviews Redlining BOM Engineer © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Creates Work Item on BOM Adds Redlining Information as a proposal Imports BOM into the Collaboration E 16 S/4HANA Cloud for intelligent product design – Main Roadmap Items Start of production Idea / Requirements Early Engineering Detailed Design Prototyping Production Service Requirements Acquisition Requirement-driven Development Handover2Service Systems Engineering Test Management Design Collaboration with unstructured data Collaboration with Structured Data for Process Industries Change Management (Impact Evaluation and Coordination) Product maturity Engineering or design bill of materials Manufacturing bill of materials Unstructured data Structured product data evolving over time © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Time17 SAP S/4HANA Cloud for Intelligent Product Design Integration with Qualtrics Closing the Loop - Enhance the Requirements Driven Development Process Customer Feedback Release Product to Market Handover to Manufacture Manage Enterprise Product Structure Configurable Product Structure Requirements Collection Non-Configurable Bill of Material Product Structure Modeling product Innovate Based on SAP IPD Define R&D Requirements Classify Requirements augmented by ML © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Analyze Requirements Available - SAP IPD System Modeling Available - SAP IPD 18 Starting from the Cockpit – Launch the Business Impact Simulation © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC UX CONCEPT PREVIEW 19 Business Impact Simulation via 3D Product © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC LAB PREVIEW 20 Advanced Variant Configuration & C/4-Integration Product Development and Configuration – Advanced Variant Configuration Idea / Requirements Early Engineering Detailed Design Prototyping Production Service Efficient product configuration modeling and execution of sales order entry Ensured data accuracy, consistency and availability for complex product management needs Coordination and collaboration between all product development stakeholders Business transparency and analytics for configurable products © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC MRP 22 Demo: Configure in commerce, quote in CPQ and process order in S/4HANA S Product Configuration Modeler Release variant configuration model Maintain variant configuration model Test variant configuration model Select and configure product in ecommerce store Ask for quote Review quote Review and adjust configuration & price Finalize quote Issue order End Customer Sales Representative Monitor automated order processing Confirm Deliver Issue goods Send bill E Order Processor © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 23 Seamless integration from front-office to back-office configuration … SAP C/4HANA Commerce on premise Commerce Cloud Sales Cloud Customer Application SAP CPQ Partner Application SAP API Business Hub Product Configuration Intelligence Intelligent Product Budgetary Selection Price Estimate Cloud Platform Product Configuration Guided Product Configuration Machine Learning Cloud Configuration Cloud Pricing Engine Engine Analytics IoT Seamless Integration One Configuration Model (Advanced) Variant Configuration S/4HANA ERP © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Engineering Order Mgmt. Procurement Manufacturing Digital Twin Service 24 Intelligent Enterprise for Customer Engagement (MTO) Scenario in Focus – Lead to Cash Budgetary Price Estimation vs Detailed Quote © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 25 Before: Budgetary Price Estimation the Hard Way Customer must define numerous technical attributes and options Numerous cycles of clarification of technical requirements Hundreds of options A time consuming iterative process No quick what-if analysis Option 1 Option 2 Option 3 Option 4 Orders lost to agile competition Option 5 Option 6 Option 7 Option 1 Option 2 Option 3 Option 4 Option 5 Option 6 Option 7 Option 1 Option 2 Option 3 Option 4 Highly skilled engineers and tech support and sales review complex rules and compatibilities for working solution and price Option 5 Option 6 Option 7 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Deep training and experience required 80-90% wasted effort 26 After: Estimation Process with SAP Product Configuration Intelligence Machine Learning based Determination of Price Relevant Attributes Intelligent Determination of Customer Needs Real Time Budgetary Price Estimation Fewer lost orders What are the few key questions that drive the functional and technical attributes? Speed, Size, Type (rather than all questions) Co-Innovation Customer Quotes Sales Rep & customer can work together quickly refining the details without delays Less training required for sales rep Budgetary Estimate in minutes enables rapid what-if analysis “In the past it would take 2-5 days of time for highly skilled engineers to generate a budgetary estimate. We now plan do this in minutes” © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Minimal wasted effort “We have partnered with SAP to unlock the value of machine learning in making the process simpler and less resource intensive” 27 Intelligent Product Selection & Budgetary Estimation Design Time Key Attribute Determination Product Selection Model Maintenance Product Selection Model Training & Scoring Data Analyst Product Manager Run Time Data Collection & Preparation Select Options (key attributes) Product/Machine Model Prediction Budgetary Price Estimation Predicted products with estimated range Create Budgetary Estimation Quote Sales Rep © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 28 Enhanced Machine-learning-based auto-classification of Document Master Increase operational efficiency through advanced classification of business objects New Capabilities: • Enhanced Machine-learning-based autoclassification of Document Master via SAP Fiori UI supporting proposals for several characteristics • Enabling basic functionality of class hierarchies • Reusable oData version 2 service to create, change, and delete classifications of corresponding objects, enabling integration with third parties. *) oDATA services are Open Data Protocol Services for data access between compatible software systems © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 29 © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 30 Wrap-up / Closing Agenda April 17th – Track 1 & Track 2 Track 2: SAP Enterprise Portfolio & Project Management & Advanced Variant Configuration Track 1: Product Lifecycle Management for Discrete Industries Welcome & Overview 09:00am - 09:30am 09:45am - 10:30am Unlock new and unexplored doors with the key to your digital twin - SAP Engineering Control Center Gerhard Himmelsbach Combine project management contradictions: Agile under the waterfall Volker Faisst 10:45am - 11:30am The backbone of your product with Enterprise Product Structure by SAP Jochen Schrempf All you need to know about SAP Enterprise Portfolio and Project Management on OnPremise and Cloud Renato Zadro 11:45am - 12:30pm Manage complexity and bring all disciplines together with Systems Engineering when driving New Product Development Carsten DietzeSelent The way intelligent technologies and machine learning help companies in PLM to become an intelligent enterprise Petra Meyer Lunch 12:30pm - 02:00 pm 02:00pm - 02:45pm In the world of mechatronics: How does one deal with software? Johann Dornbach Boost your knowledge on the integration of Advanced Variant Configuration to C/4HANA Configure, Price and Quote (CPQ) and Commerce Karlheinz Agsteiner Break 02:45pm - 03:15pm 03:15pm - 04:00pm Build configurable mechatronic products with SAP Intelligent Product Design and S/4HANA Advanced Variant Configuration Jens Griessmann The vision for the intelligent enterprise, driving value creation by providing a seamless digital thread between Engineering and Industrial Asset Management 04:15pm - 04:45pm © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Steffen Horndacher Wrap Up 32 Agenda April 17th – Track 3 & Track 4 Track 3: Cross Topics Track 4: Product Insights & Roadmaps Welcome & Overview 09:00am - 9:30am 09:45am - 10:30am Simulative cost planning for a single product up to the complete portfolio Petra Koepfer-Behncke & Dirk Loeffelbein The game plan for Enterprise Content Management Markus Pipp & Victor Wündisch 10:45am - 11:30am Design to Cost SAP Product Lifecycle Costing – Highlights, Roadmap, New Cloud Edition Julian Mayer & Katarzyna Maciak Gather all you need to know on SAP’s Digital Configuration Lifecycle Isabel Kremers 11:45am - 12:30pm Manage intelligent products from design to asset operations in a close loop Attila Sellyei & Jochen Steinbach Learn how you can start your PLM cloud journey with SAP S/4HANA Bianca Duse Experience a digital twin in virtual reality Michael Spiess Special Guests: Trinckle 3D Printing Automate your CAD designing: Let algorithms do the work for you – SAP Engineering Control Center Florian Reichle (CEO Trinckle) Lunch 12:30pm - 02:00pm 02:00pm - 02:45pm Gain knowledge on supplier collaboration with SAP and how it can benefit your supply chain management Coffee Break 02:45pm - 03:15pm 03:15pm - 04:00pm Vinay V How to handle change with collaboration across your extended supply chain? 04:15pm - 04:45pm © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Robert Anderegg & Carsten Dietze-Selent Wrap up 33 3 Takeaways 1 SAP offers an integrated, scalable, and modular PLM suite 2 Intelligence & Innovation is embedded in every solution 3 Think big – start small – scale fast © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 34 Thank You. Contact information: Dr. Juergen Weiner SVP S/4HANA Idea – LoB R&D/Engineering, SAP SE Email: juergen.weiner@sap.com