Transforming Business for the Digital Era
Jay Thoden van Velzen, P&I IoT & Customer Innovation
February 11, 2016
Public
The Digital Economy: This Time It IS Different
Digitization of Customer
Experiences
Real-time, contextual experiences
across every channel
87%
of first generation
digital natives
are connected to
the internet while
watching TV
Digitization of Resources
Data is a new asset. The Network is the new electricity.
$5.6T
savings through
connected vehicles
Digitization of Work
Work is no longer a place, but an activity
83%
of executives plan to
increase use of contingent
workers in the next 3 years
Sources:
Business Insider, www.emarketer.com, SAP Fact Sheet.
Impact Report, Harris Interactive. Colin Shaw and John Ivens, 2010; Deloitte Millennial Study, 2015; Shell, 2014; WRI, 2014; SAP SE, 2014. Towers Watson, 2012,
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
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The Key to Success Lies in Harnessing the Power
of Digital Technologies
Internet of Things
212 Billion
connected devices on the internet of things
by 2020
Mobile
Cloud
Big Data
90%
36%
44
of the world’s
population over
6 years old will
have a mobile
device by 2020
of all data will be
stored in the cloud
by 2016
trillion gigabytes
of data generated
by 2020
86% of Global CEO’s are investing in iOT, cloud, mobile, and big data and personally championing their use
Sources:
McKinsey Study, 2013; CloudTweaks.com; Ericsson, 2014; CIO Insight, 2014; Adweek, 2014, 18nth Global CEO Survey, PWC
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Digital Disruption Isn’t Just a Technology Shift.
It’s a New Business Model in Which Winners are Reimagining a Radically Different Future
Global Leader in Air system
technology
Leader in on line movie rentals
Now monetizes
compressed air, not
just compressors
Reduced 5700 sq. ft.
stores to just 12 sq.
ft.
Global Leader in Agricultural
Equipment
Turned reactive
downtime to predictive
availability
Global Leader in Cleaning Solutions
Seamless commerce
without any human
intervention
Sophisticated experiences made Simple
Data-Driven
Real-time information across
the internet of things
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
+
Seamless
Used end-to-end-across the
value chain
+
Connected
Deployed at massive
Scale across networks
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Digital Business is Here to Stay
Disruption and Business Opportunities are Everywhere
Digital business models are disruptive.
The rules have changed.
• Under Armour is not just selling shirts and shoes – It is
connecting 38 million people on a digital health platform
• Facebook is not just a social network – It is the largest media
company, even though it doesn’t create content
• Leaders are emerging from nowhere
• Uber is not just another taxi company – It is transforming into
an “urban logistics” company with 200,000 drivers, roughly
the UPS delivery workforce
• Early adopters are winning
• Siemens is not just an industrial powerhouse – It is a software
company connecting its industrial assets in the cloud and
generate new revenue streams by selling services, not
90% of CEOs believe the digital economy will impact their industry, but
less than 15% are executing on a digital strategy*
Early adopters are achieving 9%+ revenue creation, 26%+ impact to
profitability, and 12%+ market valuation*
• Industry boundaries are blurring
• Alibaba is not just the largest e-commerce company – It is also
a financial services and technology company, blurring
Every company is expanding beyond traditional industry boundaries
and also becoming a technology company
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
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SAP is Uniquely Qualified to Master Complexity
For Over 40 Years, SAP Has Led at Every Major Economic Inflection Point
SAP S/4HANA
SAP R/3
SAP R/2
SAP R/1
1972
Data Processing
1979
Globalization
1991
Internet
2015
Digital
By solving the worlds most complex business problems
Simplifying Technology
Simplifying Processes
Simplifying Decisions
Converted 38TB of data to 8TB in-memory with
SAP HANA to unlock the power
of real-time
Coordinate a supply chain of 4 million parts from
1500 suppliers across 30 countries to build one
airplane
Enable 3M rows of shopping data per
minute; 1000+ users; 94% responses in
less than 2 sec. each on “Black Friday”
Consumer goods firm serving
2B customers worldwide
Aerospace Manufacturer serving
billions of passengers per year
Retailer with 245M customers
per week across 11K stores
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SAP Has Evolved to Meet Your Simplification and Digital Needs
Through Years of Organic Innovation and $30B in M&A, SAP Has Transformed
• 75k employees
representing 120
nationalities
• Solutions for 25 industries and
12 LoBs
• 295K customers
• 98% of top valued brands are
our customers
• Operating in 191
countries
• 74% of world’s transactions
managed on SAP
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
• 80 million business cloud
users
• 1.9 million connected
businesses
• $800 billion+ in B2B
commerce
• 99%+ of mobile devices
connected with SAP
• 2011 SAP HANA launched
• 2012 SAP Cloud launched
• 2014 SAP business networks are the
largest marketplace in the world
• 2015 SAP HANA Cloud Platform
• 2015 SAP S/4HANA: Most modern
ERP system
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For More than 40 Years, SAP Has Helped the World Run Better and
Improve People’s Lives
For the world
For business
98%
97%
of the world’s transaction
revenue touches an
SAP system
SAP customers represent
98% of the top 100 most
valued brands in the world
Mobile solutions from SAP
reach 97% of the world’s mobile
subscribers via text messaging
74%
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
For you
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We are the World’s Largest Provider of Enterprise Application
Software
THE cloud
company
powered by
SAP HANA
Fastestgrowing
database
vendor
Fastestgrowing
company
at scale
in the cloud
Market leader
for mobile apps
for business
Market leader
in products
for business
analysis
SAP HANA
is the market
leading platform
for real-time
computing
Source: SAP Corporate Fact Sheet 1/2015
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Delivering Outstanding Results to Our Customers and Stakeholders
87%
98%
€14.87B
€5.5 B
of Forbes
Global 2000
of the 100
most valued
brands
(+6%) software
and softwarerelated services
revenue
(+4%)
software and
cloud revenue
100%
80%+
of Forbes top
sustainability
companies
are SME
companies
(+4%)
Total revenue
25
11
74,406
79%
Industries
Lines of
business
employees
EMEA: 33,340
Americas: 22,071
APJ: 18,995
Employee
Engagement
Index
120+
70%
nationalities
worldwide
Business Health
Culture Index
Customers
Solutions
SAP HANA
5,800 SAP HANA customers
1,800 startups
8,500 trained partners
Financials
Employees
€17.5 B
Source:
SAP Corporate Fact Sheet 1/2015; SAP Integrated Report 3/2015
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The Fastest Growing Enterprise Cloud Company at Scale
44M
30+
15M+
$600B+
~2M
$1.7B+
Industry’s
largest base of
Cloud users
Industry’s most
comprehensive
Cloud portfolio
The leading
social business
platform
The largest,
most global and
comprehensive
business
Network
Largest
business Cloud
deployments
Annualized run
rate in SAP
Cloud business
More business
professionals use
Cloud solutions from
SAP than from any
other vendor on the
planet.
Market-leading
public apps (#1 in
HCM, Procurement,
Business Networks
and Social
Collaboration)
covering all lines
of business
More users than
Chatter, Yammer
1.6 million connected
companies in 190
countries transacting
over $600B in
commerce annually
Some with about
2 million users.
Public, private and
managed service
offerings
Over 40%
year-over-year
growth in the cloud
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And Run the World’s Largest Business Network
1.5+
74%
$730+
Million
Of world
Billion
Trading Partners
Transactions
In Commerce
108+
11+
Million
Million
1 new
company
Documents
(P.O. + Invoices)
Timesheets
Processed
Joins the network
every 1.2 minutes
165+
17
6.7
Million
Million
Million
Catalog Items
Leads sent
to sellers
Users
Source:
KPIs Includes Ariba, Quadrem, Bprocess, FieldGlass and exclude OnPremise
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
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Reimagine the Boardroom as a True Digital Enterprise
But Complexity in Business Processes, Decision Making, and Technology Stands in the Way
CFO
CEO
CHRO
CIO
What if our balance
What if I could ask any
What if I could simply
What if I was free to
sheet, wrote itself?
question of my business,
and get insightful, fact
based answers in seconds,
not days
click a button to get
anyone, anywhere to work
for us when we need it?
spend 90% of my budget on
securing the future, instead
of managing the past?
CMO
CPO
What if I could predict
What if procurement
what each one of my 1.5
Million customers wanted
before they even knew it?
happened with no human
intervention and parts
reordered themselves?
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Complexity costs companies up to 10% of profit
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Complexity is an Obstacle to Digitization
Complexity is a Barrier to Simplification, Innovation and Transition to Digital
In a digital economy, speed and agility matter more than ever. While standardization remains a key pillar to successful use of
technology, simplification and business innovation need to be added to the business agenda.
$50 billion
81%
36
Source: S+G Global Brand Simplicity Index 2013
Source: SAP benchmarking
Source: SAP benchmarking
Incremental revenue available through simplification in
the United States, United Kingdom, and Germany
combined.
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Of executives surveyed believe simplification is
organization and 88% admit IT investment is
simplification
Enterprise apps per billion US dollars in revenue for
the average company. This is driving most of the
technical complexity.
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SAP HANA is the Ultimate Simplifier
A New Paradigm in Computing Opens Infinite Opportunities for Innovation and Simplification
Bringing together transactions and analytics on the same platform. uniting structured data (e.g., finance) and unstructured data (text, video, voice) will change
the way businesses plan, scale, and innovate.
Digital winners have embarked on a complete
reimagining of their business across three
dimensions:
REIMAGINE
BUSINESS MODELS
REIMAGINE
BUSINESS PROCESSES
REIMAGINE
WORK
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
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SAP HANA Architecture is Revolutionary
Speed and Agility Require a Modern Technology Platform
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
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SAP Offers the Only End-to-End Digital Business Solution
SAP HANA Enables Digitization Across 5 Business Pillars
Through organic innovations and strategic acquisitions, SAP has the best solution portfolio and expertise required to enable your digital strategy. SAP is
the preferred choice to turn your digital vision into reality.
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
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SAP Service and Support to Drive Your Success
It’s All About Value Across the Customer Lifecycle to Make the Benefits of Digital Transformation a Reality
SAP Service and Support provides the expertise, assets, and the proven methodologies required to accelerate business
innovation, reduce TCO, and run a stable platform (on premise, in the cloud, and hybrid)
RUN
All deployment models
ADVISE
IMPLEMENT
With proven best practices
Simplify and innovate
• Digital innovation road map and plan Implement with SAP Activate
• Simplified consumption experience
• Co-innovation by industry
for SAP S/4HANA
• SAP Best Practices, methodology, and
guided configuration
Run with one global support
• One global, consistent
experience
• End-to-end support – on
premise, cloud, hybrid
OPTIMIZE
For continuous innovation
Optimize to realize value
• Continuously capture and realize
benefits of digital transformation
Learn | Extend / Innovate | Engagement Foundation | Support
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
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SAP Comprehensive Ecosystem
Orchestrating the World to Deliver Faster Value
Our comprehensive ecosystem offers
integration into
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
•
A wide range of business services
(banking, travel, etc.)
•
Open architecture: choice of hardware
and software
•
Complementary and innovative third-party
solutions
•
Reach – partners to serve your business
of any size, anywhere in the world
•
Forum for influence and knowledge
•
Significant digital expertise and skill sets
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Thank you
Contact information:
Jay Thoden van Velzen
jay.thoden.van.Velzen@sap.com
+1 408 921 1301
© 2015 SAP SE or an SAP affiliate company. All rights reserved.