SAP S/4HANA – The Next Generation Business Suite Industry Value Prop (1-pager)

Customer / Partner

SAP S/4HANA – The Next Generation Business Suite Industry Value Prop (1-pager) January 2016

Overview Industry Value Proposition (1-pager)

Industry

Industry

Aerospace & Defense

Media

Automotive

Mill Products

Banking

Mining

Chemicals

Oil & Gas*

Consumer Products

Professional Services

Defense & Security*

Public Sector (incl. Postal)

Engineering Construction & Operations

Retail*

Healthcare*

Telecommunications

High Tech

Travel & Transportation

Higher Education & Research*

Utilities

Industrial Machinery & Components

Wholesale & Distribution

Insurance Life Sciences Š 2016 SAP SE or an SAP affiliate company. All rights reserved.

* not included in SAP S/4HANA 1511 Public

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SAP S/4HANA on-premise edition - 1511 Update Business scope highlights of S/4HANA Enterprise Management SAP S/4HANA FINANCE           

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SAP S/4HANA MARKETING

Time Capturing Employee Central Connectivity

SAP S/4HANA SOURCING AND PROCUREMENT Procurement Analytics Classification and Segmentation Supplier Evaluation Sourcing Incentive and Commission Management Contract Management Self-Service Requisitioning Invoice Management Receivables Management and Payment Handling

Claims, Returns and Refund Management Project Logistics Control Service Execution and Delivery Service Initiation Service Control Warranty Management Contract and Engagement Management Periodic Billing Processing Service Contract and Controlling and Accounting

Order and Contract Management Sales Planning and Monitoring Analytics Incentive and Commission Management Sales Master Data Sales Contract Management Sales Order Management and Processing Billing and Invoice Management Receivables Management and Payment Handling

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SAP S/4HANA SALES

SAP S/4HANA SERVICE

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SAP S/4HANA SUPPLY CHAIN         

Material Resource Planning Production Planning Production Scheduling Basic Order Promising Core Distribution Requirements Planning Goods Issue Goods Receipts Basic Warehouse Management Basic Shipping

SAP S/4HANA MANUFACTURING       

Basic Subcontracting Basic External Processing Production Processing Corporate Quality Quality Planning and Control Quality Operations Credit Collections Management

The Digital Core

The Digital Core

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Profitability and Cost Management Cost Planning Product Cost Management Cash and Liquidity Management Financial Risk Management Receivables Process Analytics Accounts Payable/Receivable Corporate Close Entity Close Asset Accounting Inventory Accounting Corporate Financial Management

SAP S/4HANA HUMAN RESOURCES

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Maintenance Planning and Scheduling Maintenance Execution

SAP S/4HANA ASSET MANAGEMENT

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Project Financial Control Project Logistics Control Product Design for Process Industries

SAP S/4HANA RESEARCH AND DEVELOPMENT

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Aerospace & Defense

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SAP S/4HANA on-premise Value Proposition

Business Capture and Program Delivery

A&D: Major business benefits Applicable E2E process with S/4HANA (generic) Designing & Building Complex Products

    

Production engineering and planning Production operations and execution Inventory and basic warehouse management Maintenance Management Quality management

Designing and Building Complex Products

Procurement

Limited Impact

Medium Impact

High Impact

Responsiv Supply Network

Finance

Industry specific Benefits  Reduced delays by permanent evaluation of the material flow, detecting missing parts and their impact on orders instantly  Significantly accelerate MRP for complex product and variant combinations to reduce inventory and latency in short-term production plans and simplify reporting on complete product structure net  Flexible analysis of production status at most granular level (e.g. hrs vs. days)  Real-time inventory through faster backflush allow faster order confirmations, releases and promising, optimizing internal and external logistics

Aftermarket Service

Human Resources

Exemplary Metrics*

8% reduction in manufacturing cycle time

 Real-time inventory and faster backflushing, to reduce stock buffers

Responsiv Supply Network

   

Supplier information and master data Operational sourcing and contract management Operational procurement Inventory and basic warehouse management

 Improved insight to better negotiate and drive lead-time improvements with suppliers, reduce overall supply chain cycle time and need for buffer inventory  Significantly accelerate MRP for complex products to reduce stock & increase on-time delivery  More precise scheduling, capacity allocation and inventory control streamlines supply to production flow and reduces WIP

17% lower inventory carrying costs

 Streamlined process for requisitioning/PO creation spanning multiple catalog’s without requiring master data replication. Ability to search across all catalogs collectively

Procurement

 Operational Procurement  Sourcing & Contract Management  Invoice & Payables Management

 Analyze all key metrics for suppliers like avg. delivery times, contract performance in real time on actual data vs archived, old info. Create a single supplier score based on all procurement activities

improved supplier risk management

 Execute corrective action like supplier revaluations and/or term updates as part of analysis. Pre configured metrics enable quicker evaluation and benchmarking  Faster order and invoicing cycle times with fewer errors and ability to drive early payment discounts.

Finance

 Accounting and entity close  Treasury and financial risk management  Receivables management  Integrated business planning  Cost management and profitability analysis

 Minimize number of risk policy exceptions by providing real time visibility of risk limit compliance and implementing forward looking processes by utilizing accurate risk reporting  Reduce days sales outstanding by providing insight into outstanding customer positions during every customer interaction

58% lower treasury/cash management cost

 Simplification of complex billing and partner settlement processes

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*SAP software implementation or Preliminary results from ramp-up customers © 2016 SAP SE or an SAP affiliate company. All rights reserved.

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SAP S/4HANA Transforms A&D business processes Reimagine business processes for fundamentally higher performance

Workforce engagement

Business capture & program delivery

Supplier collaboration Business networks

Digital Core Designing & building complex products

Responsive supply network

Optimize schedule and cost performance of complex programs:

Enable fully digitized shop-floor to drive quality and throughput:

Develop deep integration with critical suppliers and more risk-awareness

• Monitor status at line item level instantly for large-scale programs

• Digitize shopfloor data collection with connected manufacturing

• Gain immediate insight into present and future risks

• Discover current and future project risks and deviations earlier

• Predict machine failures to optimize production asset utilization

• Enhanced insight into supplier responses to anticipate shortages

• Run results and progress analysis in real time

• Analyze and implement engineering changes more effectively

• Enable sub-daily, constraint-based material requirements planning

Finance

Aftermarket services Deliver performance-based contracts and new services with optimal ROI  Manage all facets of outcome-based contracts in one system in real-time  Develop advanced health monitoring and predictive maintenance capabilities via real-time asset insight

Procurement Eliminate supply disruption risk while protecting margins: • Collaborate instantly with global suppliers via the Ariba Network • Monitor real-time commodity price-and-supply volatility • Automate procurement proposal creation based on real-time inventory

HR

Allow for visibility into the state of the business at Manage, develop, reward, and retain a global any time: workforce:

Assets & Internet of Things

• Enable real-time financial close for faster, more • Integrate end-to-end HR and financial accurate, and more collaborative decision processes for budget and head count making and execution enterprise-wide

Customer experience Omni-channel

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Automotive

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SAP S/4HANA on-premise Value Proposition

Sustainable Product Innovation

Automotive: Major business benefits

Procurement

Applicable E2E process with S/4HANA (generic) Sustainable Product Innovation

 Product Lifecycle Management  Enterprise Project & Portfolio Management

Manufacturing and Logistics

Limited Impact

Medium Impact

High Impact

Responsive Supply Networks Finance

Industry specific Benefits  Link real-time market and customer insights to design processes  Perform multi-level design analysis to drive better design decisions  Execute engineering changes with full visibility to downstream costs  Enable multi-disciplinary design process with mapping to engineering designs to customer needs

Marketing, Sales & Aftermarket

Digital Services

Human Resources

Exemplary Metrics*

30% Faster design of new products

20% Fewer engineering changes

Manufacturing and Logistics

 

Production engineering and planning Production operations and execution  Inventory and basic warehouse management  Maintenance Management  Quality management

 Reduced delays by permanent evaluation of the material flow, detecting missing parts and their impact on orders instantly  Significantly accelerate MRP for complex product and variant combinations to reduce inventory and latency in short-term production plans and simplify reporting on complete product structure net  Flexible analysis of production status at most granular level (e.g. hrs vs. days)

8% reduction in manufacturing cycle time

 Real-time inventory through faster backflush allow faster order confirmations, releases and promising, optimizing internal and external logistics

Responsive Supply Networks

   

Supplier information and master data Operational sourcing and contract management Operational procurement Inventory and basic warehouse management

 Real-time inventory and faster backflushing, to reduce stock buffers  Improved insight to better negotiate and drive lead-time improvements with suppliers, reduce overall supply chain cycle time and need for buffer inventory  Significantly accelerate MRP for complex products to reduce stock & increase on-time delivery

17% lower inventory carrying costs

 More precise scheduling, capacity allocation and inventory control streamlines supply to production flow and reduces WIP

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*SAP software implementation or Preliminary results from ramp-up customers © 2016 SAP SE or an SAP affiliate company. All rights reserved.

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SAP S/4HANA on-premise Value Proposition

Sustainable Product Innovation

Automotive: Major business benefits

Procurement

Applicable E2E process with S/4HANA (generic) Marketing, Sales & Aftermarket

Procurement

 Order and contract management  Billing and revenue innovation management  Sales planning and performance management

 Operational Procurement  Sourcing & Contract Management  Invoice & Payables Management

Manufacturing and Logistics

Limited Impact

Medium Impact

High Impact

Responsive Supply Networks Finance

Industry specific Benefits  Offer easy to configure, personalized solutions consisting of products and services with flexible consumption models  Simplification of complex billing and partner settlement processes , to allow solution providers to generate a single, consolidated invoice to the customers and offer flexible revenue share models to partners  Sales order fulfillment cockpit with business decision support to manage exceptions(shipping, billing and credit blocks, incompleteness situations, supply problems, delays in delivery) centrally  Real-time product availability and use-case driven product allocation check to confirm the quote and changes to orders

Marketing, Sales & Aftermarket

Digital Services

Human Resources

Exemplary Metrics*

24% revenue growth from new customers

30% higher growth in market share

 Streamlined process for requisitioning/PO creation spanning multiple catalog’s without requiring master data replication. Ability to search across all catalogs collectively  Analyze all key metrics for suppliers like avg. delivery times, contract performance in real time on actual data vs archived, old info. Create a single supplier score based on all procurement activities  Execute corrective action like supplier revaluations and/or term updates as part of analysis. Pre configured metrics enable quicker evaluation and benchmarking

Improved supplier risk management

 Faster order and invoicing cycle times with fewer errors and ability to drive early payment discounts.

Finance

 Accounting and entity close  Treasury and financial risk management  Receivables management  Integrated business planning  Cost management and profitability analysis

 Improve compliance and risk management by supporting International Financial Reporting Standards(such as multi-element arrangements and multi-GAAP), local accounting standards, and other external regulations  Minimize number of risk policy exceptions by providing real time visibility of risk limit compliance and implementing forward looking processes by utilizing accurate risk reporting  Reduce days sales outstanding by providing insight into outstanding customer positions during every customer interaction  Simplification of complex billing and partner settlement processes , to allow solution providers to generate a single, consolidated invoice to the customers and offer flexible revenue share models to partners

58% lower treasury/cash management cost

28% lower cost of capital

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*SAP software implementation or Preliminary results from ramp-up customers © 2016 SAP SE or an SAP affiliate company. All rights reserved.

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SAP S/4HANA Transforms Automotive business processes Reimagine business processes for fundamentally higher performance

Digital Core

Workforce engagement

Manufacturing and Logistics

Sustainable Product Innovation

Responsive Supply Networks

Connect R&D areas and processes to deliver desired innovations quickly and with high quality:

Respond to globalization and cost pressures by reducing inventories and synchronizing logistics processes:

• Enable real-time cross-functional collaboration, from idea to launch

• Establish sub-daily material requirements planning

•

• Higher product quality through rapid root-cause analysis on product and process failures

• Real-time inventory monitoring with automated procurement proposals

Monitor real-time commodity price-and-supply volatility

•

“Real-time” view of end-to-end supply chain. Exception-based notification and integrated resolution of issues

• More accurate cost estimates with role-based product cost estimation activities

• Predict breakdowns to proactively perform maintenance on assets • Gain instant transparency due to realtime processing of inventory consumption

Procurement

Assets & Internet of Things

Supplier collaboration business networks

Increase the efficiency of supply networks: •

Reduce supply chain risk and disruption

Finance

Marketing, Sales and Aftermarket Increase profit margins, optimize services and innovate new offerings for informed and demanding customers: • Provide real-time visibility into customer demand across all channels for vehicles and parts

• Real-time marketing with increased transparency and internal collaboration • Provide enhanced customer service using context-aware, Big Data insights

HR

Eliminate supply disruption risk while protecting margins:

Allow for visibility into the state of the business at any time:

Manage, develop, reward, and retain a global workforce:

• Collaborate instantly with global suppliers

• Enable real-time financial close for faster, more accurate, and more collaborative decision making and execution enterprisewide

• Integrate end-to-end HR and financial processes for budget and head count

• Monitor real-time commodity price-and-supply volatility • Automate procurement proposal creation based on real-time inventory

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

Customer experience omni-channel

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Banking

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SAP S/4HANA on-premise Value Proposition

Accounting & Financial Close

Banking: Major business benefits Applicable E2E process with S/4HANA Accounting & Financial close

Financial Planning & Analysis

Retail and Commercial Banking Operations*

Treasury & Risk Management Collaborative Finance Operations

 Corporate Close  Entity Close  Disclosures and Regulatory  Average Daily Balances    

Filings

Predictive analytics Integrated planning, budgeting and forecasting Profitability and cost management Monitoring and reporting

 Retail Deposits  Cash and Liquidity Management  Retail and Commercial Lending  Collateral Management  Centralized Payment Processing  Cash and liquidity management  Debt and investment strategies  Payments and bank communications

Collaborative Invoice to pay Shared Services framework Travel and real estate management

Financial Planning & Analysis

Procurement

Limited Impact

Medium Impact

High Impact

Collaborative Finance

Treasury & Risk Mgmt.

Enterprise Risk & Compliance

Human Resources

Industry specific Benefits  Ability to close books quickly with accuracy and in full compliance with regulatory standards.  Faster, less expensive, more accurate and more transparent close – from entity close to the corporate close  Support for average daily balances  Ability to quickly and efficiently adapt budgets, plans and resources to mitigate risks and take advantage of opportunities  Better information reporting and data visualization capabilities helping LOB managers to make better decisions.  Better at providing managers with forward looking predictive analytics  Cost savings due to compression of data  Usage of transactional data for reporting purposes  real-time availability of transactional data for digital marketing/predictive analytics/real-time offers  One instance end to end deployments enable to benefit from new capabilities in accounting such as accelerated financial close  Ability to optimize cash flow and liquidity management, streamline communications, and integrate treasury functions with multiple banks while maintaining greater control over payment and receipt processes  Ability to leverage shared services to standardize, streamline and syndicate business practices to improve transaction speed and accuracy. Enables greater productivity/efficiency, lower cost as a % of revenue and more transactions per FTE.

Exemplary Metrics*

3x lower finance cost as a % of revenue

76% higher operating margin when financial systems provide both historical plus forward looking views

39% Fewer compliance and risk management FTEs per billion dollars in revenue systems with automated reporting and alerting

86% faster real-time analytics

* Release of SAP for Banking together with SAP S/4HANA, on-premise edition 1511 according to SAP note 2211665

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Transform business processes Reimagine business processes for fundamentally higher performance

Digital Core

Workforce engagement

Sustainable innovation

Customer collaboration business networks

Regulatory compliance

Sales and marketing

Ensure new product success while driving growth:

Accelerate and improve acceptance and cross sell rates, and drive increased profitability:

Monitor and reduce risk while ensuring compliance:

• Enable real-time cross-functional collaboration, from idea to launch

• Provide real-time visibility to opportunities across all channels

• Provide real-time visibility into liquidity and cash

• Engage partners, counterparties, and customers directly in innovation processes

• Use predictive analytics to sell the right product to the right customer at the right time

• Use configurable product technology to bring new products to market within weeks, not months or years

• Offer contextually relevant products instantly, and automate account origination

• Protect the business and the brand with active social listening tools and enhanced customer service

Finance

• Turn regulatory data collection into a strategic information asset with a single view of transactions and reporting data

HR

Allow for visibility into the state of the bank at any Manage, develop, reward, and retain a global time: workforce:

Big data and Predictive analytics

• Enable real-time financial close for faster, more • Integrate end-to-end HR and financial accurate, and more collaborative decision processes for budget and head count making and execution enterprise-wide

Customer experience omni-channel banking

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Chemicals

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SAP S/4HANA on-premise Value Proposition Chemicals: Major business benefits

Manufacturing

Supply Chain Management

Sales

Procurement

Finance

 Product  Product

   

development and project control safety and stewardship

Manufacturing execution Quality management and compliance Maintenance Environment, health, and safety

 Production planning  Inventory and basic warehouse

management

Order and contract management Sales planning and performance management Billing and revenue recognition management

Manufacturing

Procurement

Applicable E2E process with S/4HANA (generic) Product Innovation & Integrity

Product Innovation and Integrity

Limited Impact

Medium Impact

High Impact

Supply Chain Management

Finance

Industry specific Benefits  Reduced time to market at lower cost  Ensured product marketability at reduced compliance risks and costs  Reduced manufacturing costs by  predictive analytics for predicting quality issues and proactively influence production and maintenance plans  maximized asset utilization with more efficient plant maintenance and real time insight from shop floor to top floor  Reduced inventory cost by  real time view on inventory levels and real time information on supplier capacities  Simulation of delivery capabilities by faster MRP runs  Maximizing opportunities and wins through new sales offerings by  Real-time forecasting and analytic capabilities  Real-time, adaptive sales visibility, planning, and automation

 Supplier information and master data  Operational procurement  Invoice and payables management  Business Network

 Simple, fast, and error-free invoice processing through integration with the Ariba Network

Accounting and financial close Cost management and profitability analysis Receivables Management Integrated business planning

 Allow for visibility into the state of the business at any time by  real-time analysis to make timely, relevant decisions  one common view to ensure enterprise-wide consistency & minimize reconciliation

Sales and Marketing Human Resources

Exemplary Metrics*

17% lower inventory carrying costs

49% Improvement in complaint processing performance

3x-5x faster business intelligence (BI) with integrated planning applications

3 vs 7 days Faster month-end close

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SAP S/4HANA Transforms Chemicals business processes Core Business Processes and Challenges

Workforce engagement

Supplier collaboration Business networks

Digital Core Manufacturing

Product Innovation & Integrity Drive sustainable Growth and Innovation • Consolidate data from data bases and devices / machines for predictive analytics during experiment design (Knowledge Hub) • Design, execute and capture experiments in a closed loop process leveraging history lab data and knowledge base (Smart Lab) • Predict technical properties of new formulations (E-Chemistry)

Enable step change in performance via touchless, digitally-driven Manufacturing:

Ensure agile and responsive Order Fulfillment • Capture demand in real-time via sensors (e.g. VMI, 3D-Printing), run “ad-hoc” S&OP simulations

• Allow for event driven adjustments of production plans and schedules • Establish predictive models for asset maintenance and product quality

• Automatically fulfill and deliver order according to safe and sustainable practices (incl. MSDS, COA, ASN etc., “no touch order to delivery”)

• Enable data-driven decision support based on real-time insights

Finance

HR

Allow for visibility into the state of the business at Take Workforce Safety and Efficiency to any time: another Level • Enable real-time financial close for faster, more • Fully digitalize relevant documentation and accurate, and more collaborative decision deliver via variety of mobile devices making and execution enterprise-wide (intrinsically safe devices)

Internet of Things and Big Data

Sales & Marketing

Supply Chain Management

• Track and trace workers exposure to hazards (sensors), work and security authorization and location in real-time

Increase Margins through real-time Price and Order Management : • Simulate prices and margins anytime, anywhere and at any level of granularity • Develop real-time pricing quotes for customers & prospects and integrate with available to promise/capable to deliver commitments

Procurement Enable digital closed-loop Procurement Processes: • Collaborate instantly with global suppliers via the Ariba Network • Monitor real-time commodity price-and-supply volatility • Automate procurement proposal creation based on real-time inventory

Customer experience Omnichannels

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Consumer Products

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SAP S/4HANA Enterprise Mgmt. on-premise Value Proposition CP: Major business benefits (compared to ERP on HANA) Applicable E2E process with S/4HANA (generic)

Procurement

 Supplier information and master data  Operational procurement  Invoice and payables management  Operational sourcing and contract management

Sustainable Product Innovation

Procurement

Finance

Limited Impact

Medium Impact

High Impact

Agile Manufacturing

Human Resources

Industry specific Benefits

Real-Time Supply Chain

Sales*

*CP Value Map combines Sales & Marketing; Marketing excluded as not part of S/4HANA EP op

Exemplary Metrics*

 Increased efficiency and decision support in the procure-to-pay process

50% faster MRP runtimes (SAP ERP on HANA*)

Agile Manufacturing

Real-Time Supply Chain

Sales

Finance

Production engineering and planning Production operation & execution Quality Management

 Inventory

and basic warehouse management

Order and contract management

Accounting Accounting and entity close Cost management and profitability analysis Receivables processing

 Reduced manufacturing costs by predictive analytics for predicting quality issues and proactively influence production and maintenance plans

 Reduced inventory cost (increased inventory turnover, lower write-offs) and single source of truth of inventory in one system  Attract end-user by real-time accuracy for improved decision support

Faster execution of business operations (SAP ERP on HANA*)

+72%

 Increased flexibility for handling rebate programs and support for individually tailored rebate programs to increase sales to B2B customers  Smart Business Applications like Advanced Sales Order Fulfillment Cockpit deliver real-time and relevant information to the sales rep helping to  Improve “Perfect Order” ratio to increase customer satisfaction and loyalty  Faster decision making, reduce operational costs of order processing

Operating margin where users have access to relevant cost information

 Cut significant time from period-end close  Allow for visibility into the state of the business at any time by  real-time analysis to make timely, relevant decisions  one common view to ensure enterprise-wide consistency & minimize reconciliation

70%

*customer reference examples © 2016 SAP SE or an SAP affiliate company. All rights reserved.

45%

(SAP Benchmarking database)

reduction in intercompany reconciliation time (SAP S/4HANA Finance*)

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SAP S/4HANA Transforms Consumer Products business processes Reimagine business processes for fundamentally higher performance

Workforce engagement

Sustainable Innovation

Supplier collaboration business networks

Digital Core Procurement

Agile manufacturing

Real-time supply chain

Sales and marketing

Ensure new product success while driving category growth:

Eliminate supply disruption risk while protecting margins:

Optimize production capacity and material flow:

Accelerate and improve short-term demand forecasting:

Deliver optimal ROI on all promotions and campaigns:

• Enable real-time cross-functional collaboration, from idea to launch

• Collaborate instantly with global suppliers via the Ariba Network

• Predict machine failures via connected maintenance

• Simulate consumer responses to predict revenue, volume, and profit

• Engage partners, agencies, and consumers directly in innovation processes

• Monitor real-time commodity priceand-supply volatility

• Schedule preventive maintenance based on real-time view of assets and financial impact

• Provide real-time visibility into consumer demand across all channels

• Automate procurement proposal creation based on real-time inventory

• Enable sub-daily material requirements planning

Finance

• Enable constraint-based planning • Access inventory availability instantly, and automate back-order processing

• Adjust promotion and campaign parameters instantly to shape future demand

HR

Allow for visibility into the state of the business at Manage, develop, reward, and retain a global any time: workforce:

Assets & Internet of Things

• Enable real-time financial close for faster, more • Integrate end-to-end HR and financial accurate, and more collaborative decision processes for budget and head count making and execution enterprise-wide

Customer experience omni-channel

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Engineering Construction & Operations

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High Impact

SAP S/4HANA on-premise Value Proposition EC&O: Major business benefits

Finance

PreConstruction

PreConstruction

Asset Management

Finance

Human Resources

Industry specific Benefits

 Contract & Invoice Management  Project Management & Collaboration  Project Performance & Analytics

 Control project plans/forecast/actuals on one single database  Perform Estimate to Complete (ETC) calculations  Execute projects Changes & Issues

Accounting and financial close Cost management and profitability analysis Financial Consolidation

 Allow for visibility into the state of the business at any time by  real-time analysis to make timely, relevant decisions  one common view to ensure enterprise-wide consistency & minimize reconciliation  Accounting and entity close  Cost management and profitability analysis

Sales Order and contract management Product design & control

 Maximizing opportunities and wins through new offerings by  Real-time forecasting and analytic capabilities  Real-time, adaptive sales visibility, planning, and automation

Limited Impact

Project Delivery

Procurement

Applicable E2E process with S/4HANA (generic) Project Delivery

Medium Impact

Exemplary Metrics*

15% faster design process for new product offerings

8% reduction in construction execution time

 Faster design process by real-time change impact and simulation and analysis

Procurement

 Supplier information and master data  Supplier Network Management  Operational sourcing and contract

management

 Improved quality and reduced cost by decision support (On-the-fly supplier score calculation) to pick the best suited supplier  Execute contract and invoice management in combination with combination on-premise - cloud solutions

86% faster real-time analytics

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SAP S/4HANA Transforms EC&O business processes Reimagine business processes for fundamentally higher performance

Workforce engagement

Digital Core Pre-Construction Immediately leverage historical project and contract data to secure bids: • Better source determination for materials and workforce with immediate connection between financial back office and supply networks • Immediate access to visual engineering and design solutions

Asset Management

Project Delivery Drive predictable on-time project delivery:

Optimize equipment availability, minimize downtime, and improve property utilization:

• Minimize friction between project tasks with immediate operational alignment • Immediate reaction to risk and financial impact

• Predict equipment failures via connected maintenance

• Speed tight collaboration between clients, contractors, and staff.

• Schedule preventive maintenance based on realtime view of equipment and financial

Finance

Assets & Internet of Things

Supplier collaboration business networks

HR

Allow for visibility into the state of the business at Manage, develop, reward, and retain a global workforce: any time: • Enable real-time financial close for faster, more • Integrate end-to-end HR and financial processes for budget and head count accurate, and more collaborative decision making and execution enterprise-wide

Tenant experience omni-channel

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Healthcare

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SAP S/4HANA Transforms Healthcare business processes Reimagine processes for fundamentally higher performance

Workforce engagement

Supplier collaboration business networks

Digital Core Patient Experience

Clinical Delivery

Care Collaboration

Healthcare Analytics and Research

Engage patients with personalized outreach and transparency: • Create role-based, 360 degree view of patients beyond traditional patient record • Offer personalized prevention and treatment options • Provide patient self-service options and easy and instant access to information and health services

Simplify and connect treatment and care in real-time:

Synchronize caregivers, clinicians, patients and devices across multiple channels: • Involve patients actively in prevention and care delivery process • Create integrated health networks connecting life sciences, payers, providers and patients based on real-life evidence data • Gain comprehensive, high quality health data to drive public health initiatives

Transform administrative and clinical data from diverse sources into actionable insights: • Leverage real-time, high volume data for advanced medical insights • Utilize predictive analytics for patient treatment and risk mitigation • Enable clinical researchers to combine structured, unstructured, and genomic information for analytics

• Shift documentation from caregivers to devices and patients so caregivers can focus on key tasks • Push relevant data to caregivers in the right context to replace traditional information seeking • Use predictive technology & self-learning to optimize clinical decisions

Finance

Assets & Internet of Things

HR

Allow for visibility into the state of the business at any time:

Manage, develop, reward, and retain a global workforce:

• Enable real-time financial close for faster, more accurate, and more collaborative decision making and execution enterprise-wide

• Integrate end-to-end HR and financial processes for budget and head count

Procurement Coordinate procurement and supplier enablement across departments and buying centers: • Empower real-time integrated purchasing to maximize economies of scale

Patient experience omni-channel

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High Tech

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SAP S/4HANA on-premise Value Proposition

Product Innovation and Sourcing

High Tech: Major business benefits

 Product Lifecycle Management  Enterprise Project & Portfolio Management

Manufacturing

Procurement

Applicable E2E process with S/4HANA (generic) Product Innovation and Sourcing

Supply Chain

Limited Impact

Medium Impact

High Impact

Finance

Industry specific Benefits  Link real-time market and customer insights to design processes  Perform multi-level design analysis to drive better design decisions  Execute engineering changes with full visibility to downstream costs

Multi-channel Sales & Marketing

Customer Service

Human Resources

Exemplary Metrics*

30% Faster design of new products

 Enable multi-disciplinary design process with mapping to engineering designs to customer needs

20% Supply Chain

 

Supplier information and master data Operational sourcing and contract management  Operational procurement  Inventory and basic warehouse management

Fewer engineering changes  Real-time inventory and faster backflushing, to reduce stock buffers  Improved insight to better negotiate and drive lead-time improvements with suppliers, reduce overall supply chain cycle time and need for buffer inventory  Significantly accelerate MRP for complex products to reduce stock & increase on-time delivery  More precise scheduling, capacity allocation and inventory control streamlines supply to production flow and reduces WIP

Manufacturing

 

Production engineering and planning Production operations and execution  Inventory and basic warehouse management  Maintenance Management  Quality management

 Reduced delays by permanent evaluation of the material flow, detecting missing parts and their impact on orders instantly  Significantly accelerate MRP for complex product and variant combinations to reduce inventory and latency in short-term production plans and simplify reporting on complete product structure net

17% lower inventory carrying costs

8% reduction in manufacturing cycle time

 Flexible analysis of production status at most granular level (e.g. hrs vs. days)  Real-time inventory through faster backflush allow faster order confirmations, releases and promising, optimizing internal and external logistics

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*SAP software implementation or Preliminary results from ramp-up customers © 2016 SAP SE or an SAP affiliate company. All rights reserved.

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SAP S/4HANA on-premise Value Proposition

Product Innovation and Sourcing

High Tech: Major business benefits Applicable E2E process with S/4HANA (generic) Multi-channel Sales & Marketing

Procurement

 Order and contract management  Billing and revenue innovation management  Sales planning and performance management

 Operational Procurement  Sourcing & Contract Management  Invoice & Payables Management

Supply Chain

Procurement

Limited Impact

Medium Impact

High Impact

Manufacturing

Finance

Multi-channel Sales & Marketing

Customer Service

Human Resources

Industry specific Benefits

Exemplary Metrics*

 Offer easy to configure, personalized solutions consisting of products and services with flexible consumption models  Simplification of complex billing and partner settlement processes , to allow solution providers to generate a single, consolidated invoice to the customers and offer flexible revenue share models to partners  Sales order fulfillment cockpit with business decision support to manage exceptions(shipping, billing and credit blocks, incompleteness situations, supply problems, delays in delivery) centrally  Real-time product availability and use-case driven product allocation check to confirm the quote and changes to orders

24%

 Streamlined process for requisitioning/PO creation spanning multiple catalog’s without requiring master data replication. Ability to search across all catalogs collectively  Analyze all key metrics for suppliers like avg. delivery times, contract performance in real time on actual data vs archived, old info. Create a single supplier score based on all procurement activities  Execute corrective action like supplier revaluations and/or term updates as part of analysis. Pre configured metrics enable quicker evaluation and benchmarking

revenue growth from new customers

30% higher growth in market share

Improved supplier risk management

 Faster order and invoicing cycle times with fewer errors and ability to drive early payment discounts.

Finance

 Accounting and entity close  Treasury and financial risk management  Receivables management  Integrated business planning  Cost management and profitability analysis

 Improve compliance and risk management by supporting International Financial Reporting Standards(such as multi-element arrangements and multi-GAAP), local accounting standards, and other external regulations  Minimize number of risk policy exceptions by providing real time visibility of risk limit compliance and implementing forward looking processes by utilizing accurate risk reporting  Reduce days sales outstanding by providing insight into outstanding customer positions during every customer interaction  Simplification of complex billing and partner settlement processes , to allow solution providers to generate a single, consolidated invoice to the customers and offer flexible revenue share models to partners

58% lower treasury/cash management cost

28% lower cost of capital

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SAP S/4HANA Transforms High Tech business processes Reimagine business processes for fundamentally higher performance

Workforce engagement

Digital Core

Product Innovation and Sourcing Accelerate innovation to volume: • Optimize innovation portfolio with detailed simulations in real-time • Detailed insight through sentiment analysis shared in real-time across partner system • Centralize and access process, product & project data in real time

Supply Chain

Multichannel Sales and Marketing

Manufacturing

Align supply and demand in real time:

Optimize manufacturing and fulfillment operations:

Engage customers and drive profitable growth:

• Combine planning with strategic, financial, sales, and operational goals

• Support for machine configuration for lot size of one with direct linkage to ATP/APO to allow real time customer orders and changes

• Identify immediate opportunities through customer segmentation and personalized campaigns

• Real-time processing of inventory postings and visibility of inventory values globally • Provide effortless collaboration in real-time with customers, suppliers, and partners

Procurement

Assets & Internet of Things

Supplier collaboration Business networks

Automate and streamline complex, highvolume invoice processes & purchasing documentation • Simple, fast, touchless, and error-free purchasing, invoice, and payment process through the Ariba Network

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

• Frequent re-synchronization of supply chain and production plans • Prioritized view on material flow issues

• Offer large scale turn-key solutions with consumption based pricing and billing • Monitor and improve channel performance and predict future behavior

Finance Allow for visibility into the state of the business at any time: • Enable real-time financial close for faster, more accurate, and more collaborative decision making and execution enterprise-wide

Customer Service Drive profitable service • Lower warranty cost with early detection of failure patterns • Support field service from every angle with optimized workforce scheduling and mobile apps • Exceed customer expectations across multiple channels with predictive analytics and real-time collaboration

Human Resources Align global talent with strategy and execution to optimize scarce resources and workforce effectiveness

Customer experience omni-channel

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Industrial Machinery & Components

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SAP S/4HANA on-premise Value Proposition

R&D / Engineering

IM&C: Major business benefits

Procurement

Applicable E2E process with S/4HANA (generic) Product Lifecycle Management Enterprise Project & Portfolio Management

R&D/Engineering

Order and contract management Billing and revenue innovation management Sales planning and performance management

Supply Chain

Finance

Industry specific Benefits     

Sales

Sales

  

Limited Impact

Medium Impact

High Impact

Link real-time market and customer insights to design processes Perform multi-level design analysis to drive better design decisions Execute engineering changes with full visibility to downstream costs Enable multi-disciplinary design process with mapping to engineering designs to customer needs Offer easy to configure, personalized solutions consisting of products and services with flexible consumption models Simplification of complex billing and partner settlement processes , to allow solution providers to generate a single, consolidated invoice to the customers and offer flexible revenue share models to partners Sales order fulfillment cockpit with business decision support to manage exceptions(shipping, billing and credit blocks, incompleteness situations, supply problems, delays in delivery) centrally Real-time product availability and use-case driven product allocation check to confirm the quote and changes to orders

Manufacturing

Aftermarket Service

Human Resources

Exemplary Metrics*

30% Faster design of new products

24% revenue growth from new customers

30% higher growth in market share

 Real-time inventory and faster backflushing, to reduce stock buffers

Supply Chain

   

Supplier information and master data Operational sourcing and contract management Operational procurement Inventory and basic warehouse management

 

Manufacturing

Production engineering and planning Production operations and execution  Inventory and basic warehouse management  Maintenance Management  Quality management

 Improved insight to better negotiate and drive lead-time improvements with suppliers, reduce overall supply chain cycle time and need for buffer inventory

 Significantly accelerate MRP for complex products to reduce stock & increase on-time delivery  More precise scheduling, capacity allocation and inventory control streamlines supply to production flow and reduces WIP  Reduced delays by permanent evaluation of the material flow, detecting missing parts and their impact on orders instantly  Significantly accelerate MRP for complex product and variant combinations to reduce inventory and latency in short-term production plans and simplify reporting on complete product structure net  Flexible analysis of production status at most granular level (e.g. hrs vs. days)  Real-time inventory through faster backflush allow faster order confirmations, releases and promising, optimizing internal and external logistics

17% lower inventory carrying costs

8% reduction in manufacturing cycle time

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SAP S/4HANA on-premise Value Proposition

R&D / Engineering

IM&C: Major business benefits Applicable E2E process with S/4HANA (generic)

Procurement

 Operational Procurement  Sourcing & Contract Management  Invoice & Payables Management

Sales

Procurement

Limited Impact

Medium Impact

High Impact

Supply Chain

Finance

Industry specific Benefits  Streamlined process for requisitioning/PO creation spanning multiple catalog’s without requiring master data replication. Ability to search across all catalogs collectively  Analyze all key metrics for suppliers like avg. delivery times, contract performance in real time on actual data vs. archived, old information. Create a single supplier score based on all procurement activities

Manufacturing

Aftermarket Service

Human Resources

Exemplary Metrics* improved supplier risk management

 Execute corrective action like supplier revaluations and/or term updates as part of analysis. Pre configured metrics enable quicker evaluation and benchmarking  Faster order and invoicing cycle times with fewer errors and ability to drive early payment discounts.

Finance

 Accounting and entity close  Treasury and financial risk management  Receivables management  Integrated business planning  Cost management and profitability analysis

 Minimize number of risk policy exceptions by providing real time visibility of risk limit compliance and implementing forward looking processes by utilizing accurate risk reporting  Reduce days sales outstanding by providing insight into outstanding customer positions during every customer interaction

58% lower treasury/cash management cost

 Simplification of complex billing and partner settlement processes

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SAP S/4HANA Transforms IM&C business processes Reimagine business processes for fundamentally higher performance

Workforce engagement

Digital Core

R&D / Engineering Increase innovation velocity: • Simulate, optimize & measure modularization • Collaborate seamlessly with customers, suppliers, & partners • Centralize and access process, product & project data in real time

Sales

Supply Chain

Manufacturing

Aftermarket Service

Track lead, prospect, & opportunity status tracked in real time::

View material shortages & inventory levels in a real time, single view:

Optimize production capacity and material flow:

Integrate labor, material & capacity planning for service in real time

• Offer complete, engineered or configured-to-order solutions

• Enable real-time collaboration with customers, suppliers, and partners

• Predict machine failures via connected maintenance

• Align sales with engineering, supply chain & manufacturing

• Provide faster and more accurate inventory data to help reduce stockouts, obsolete items, and excess inventory

• Schedule preventive maintenance based on real-time view of assets and financial impact

• Provide faster and higher quality installed base data to help increase high-margin service & maintenance profitability to compensate for lowermargin original equipment sales

Procurement Automate and streamline complex, highvolume invoice processes & purchasing documentation

Assets & Internet of Things

Supplier collaboration business Networks

• Facilitate Simple, fast, touchless, and error-free purchasing, invoice & payment process through the Ariba Network

Finance

• Enable sub-daily material requirements planning

• Exceed customer expectations across multiple channels with predictive & remote diagnostics

Human Resources

Allow for visibility into the state of the business at any time:

Manage, develop, reward, and retain a global workforce:

• Enable real-time financial close for faster, more accurate, and more collaborative decision making and execution enterprise-wide

• Integrate end-to-end HR and financial processes for budget and head count

Multi-channel Customer experience

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Insurance

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High Impact

SAP S/4HANA on-premise Value Proposition Insurance: Major business benefits Applicable E2E process with S/4HANA (generic)

Core Insurance Operations

Finance Investments, and Compliance

Market Insight and Customer Intimacy

Procurement

  

Product and Policy Lifecycle Claims Lifecycle Billing and Payments

Finance Planning and Analysis Accounting and Financial Close Governance, Risk and Compliance

 Real-Time Customer Insights  Unique Customer Experiences

 Operational procurement  Invoice and payables management

Market Insight and Customer Intimacy

Core Insurance Operations

Procurement

Industry specific Benefits  Optimize innovative product & service creation to align with customer’s needs thru real-time analysis of customer data  Facilitate fast and efficient claims management with predictive questioning that expedites processing and improves customer service .

 Manage, plan, and respond quickly to changes in insurance markets by real-time analysis of big data.  Faster, less expensive, more accurate and more transparent close – from entity close to the corporate close  Embed financial and operational controls into business processes for better risk management • Inspire customers with personalized interactions that build lasting customer loyalty • Provide a consistent customer experience across all channels by delivering predictable, value-driven product offerings .  Leverage the power of network collaboration for efficiency and insights.

Limited Impact

Medium Impact

Finance, Investments, and Compliance

Human Resources

Exemplary Metrics*

14% Faster time to market1

44% Lower audit costs1

15% Quota achievements1

98% Enablement of touchless invoices and payments2

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Insurance Core Business Processes and Challenges Digital Core Workforce engagement

Market Insight and customer intimacy

Core Insurance Operations

Maximize customer experience and retention :

Simplify core processes across all major lines of business :

• Inspire customers with personalized interactions that build lasting customer loyalty

• Optimize innovative product & service creation to align with customer’s needs thru real-time analysis of customer data

• Provide a consistent customer experience across all channels by delivering predictable, value-driven product offerings .

• Facilitate fast and efficient claims management with predictive questioning that expedites processing and improves customer service .

Human Resources

Finance, Investments, and Compliance Achieve real-time financial reporting and risk management, while ensuring effective and efficient compliance: • Manage, plan, and respond quickly to changes in insurance markets by real-time analysis of big data.

• Embed financial and operational controls into business processes for better risk management.

Procurement

Manage, develop, reward, and retain a global workforce:

Drive sustainable savings while supporting innovation

• Integrate end-to-end HR and financial processes for budget and head count

•

Assets & Internet of Things

Supplier collaboration business networks

Leverage the power of network collaboration for efficiency and insights.

Customer experience omni-channel

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Life Sciences

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SAP S/4HANA on-premise Value Proposition

Collaborative R&D

Life Sciences: Major business benefits Applicable E2E process with S/4HANA (generic) Supply Networks

Compliant Manufacturing

Strategic Sourcing and Procurement

 Production planning  Inventory and basic warehouse

 

management

Manufacturing execution Quality management and compliance

 Supplier information and master data  Operational procurement  Invoice and payables management  Operational sourcing and contract

management Collaborative R&D

Sales & Service

Finance

 Product development and project  Environment, health, and safety

control

Billing and revenue innovation management Sales planning and performance management Accounting and entity close Accounting Cost management and profitability analysis

Strategic Sourcing and Procurement Human Resources

Limited Impact

Medium Impact

High Impact

Supply Networks Finance

Industry specific Benefits

Compliant Manufacturing Platform and Technology

Exemplary Metrics*

 Reduced inventory cost by  real time view on inventory levels and real time information on supplier capacities  Simulation of delivery capabilities by faster MRP runs  Improved quality and reduced cost by decision support (integrated supplier dashboard with meta data) to pick the best suited supplier

faster MRP runtimes

 Manufacturing cycle time by sub-daily MRP runs  Reduced manufacturing costs by predictive analytics for predicting quality issues and proactively influence production and maintenance plans

Faster execution of business operations

 Improved quality and reduced cost by decision support (On-the-fly supplier score calculation) to pick the best suited supplier  Faster design process by real-time change impact and simulation and analysis • Analyze trends, market behavior and sales performance in real time • Enable multichannel communication to B2B customers and patients • Predict sales, margins, and service needs  Allow for visibility into the state of the business at any time by  real-time analysis to make timely, relevant decisions  one common view to ensure enterprise-wide consistency & minimize reconciliation

50% (SAP ERP on HANA*)

45% (SAP ERP on HANA*)

+72% Operating margin where users have access to relevant cost information (SAP Benchmarking database)

70% reduction in intercompany reconciliation time (SAP S/4HANA Finance*)

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Sales, Marketing, Service

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SAP S/4HANA Transforms Life Science business processes Reimagine business processes for fundamentally higher performance

Workforce engagement

Collaborative R&D

Supplier collaboration business networks

Digital Core Strategic sourcing and procurement

Demand-driven supply networks

Compliant manufacturing

Multichannel sales, marketing and services

Ensure successful innovations and drive pipe:

Eliminate supply disruption risk while protecting margins:

Maximize patient safety while optimizing working capital:

Mitigate quality risk while maximizing productivity

Effectively market, interact and sell to all segments:

• Enable real-time cross-functional collaboration from idea to launch

• Collaborate instantly with global suppliers via the Ariba network

• Track and trace drugs, devices up and down the supply chain

• Monitor quality in real time across plants and contract organizations

• Analyze trends, market behavior and sales performance in real time

• Engage scientists, contract research organizations, hospitals, patients, and other partners directly in R&D processes

• On- and off-board contract organizations and contingent workforce easily

• Automate sales and operations planning based on real time inventory and production data

• Schedule preventive maintenance based on real-time view of assets and financial impact

• Enable multichannel communication to B2B customers and patients

• Maximize supplier performance and quality based on real-time KPIs

Finance

• Predict sales, margins, and service needs

HR

Allow for visibility into the state of the business at Manage, develop, reward and retain a global any time: workforce:

Assets & Internet of Things

• Make strategic decision based on real time data and achieve positive RoI after M&A faster • Enable real-time financial close and improve enterprise-wide collaboration

• Attract and retain most talented scientists • Integrate end-to-end HR and financial processes for budget and headcount

Customer experience omni-channel

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Media

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SAP S/4HANA on-premise Value Proposition

Compelling Content Creation

Media: Major business benefits Applicable E2E process with S/4HANA (generic)

Compelling Content Creation

Content Monetization

Procurement

Finance

 Media  Media

 Order

 Direct

Planning Production Management

and Contract Management

Procurement

Accounting and financial close Financial Planning and Analysis

Procurement

Limited Impact

Medium Impact

High Impact

Audience Engagement Finance

Industry specific Benefits

 Lower project delivery costs by managing project financial performance in an integrated and fully automated way  Run on-the-fly financial analysis and calculations for projects  Advanced Sales Order Fulfillment Cockpit delivers real-time and relevant information to the sales rep helping to improve “Perfect Order” ratio and increase customer satisfaction and loyalty  Lower administrative costs by frictionless order processing - from quote to cash  Manage purchases with greater efficiency and productivity by using a centralized system with real-time analytics.  Improved quality and reduced cost by decision support (On-the-fly supplier score calculation) to pick the best suited supplier  Reduced time to close books by supporting fast, peer-to-peer intercompany reconciliation; automating closing tasks; and increasing user efficiency  No reconciliation efforts between General Ledger and its sub ledgers  Built-in ability to use prediction, simulation, and analysis to evaluate the financial implications of strategic business options  Reduce days sales outstanding by providing insight into outstanding customer positions during every customer interaction

Content Monetization Human Resources

Exemplary Metrics*

3 vs 7 days Faster month-end close

91% faster Automatic maintenance revenue accruals

58% lower treasury/cash management cost

86% faster real-time analytics

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SAP S/4HANA Transforms Media business processes Reimagine business processes for fundamentally higher performance

Workforce engagement

Compelling Content Creation

Media Content Monetization

Audience Monetization

Shorten time to market and increase product success rates.

• Simplify and accelerate content creation through real-time collaboration with producers, advertisers, and suppliers.

• Quickly analyze trends in data consumption and customer delivery preferences to alter content to interests and devices.

Enable multichannel distribution and grow margins.

• Combine on-line and off-line content strategies, bundling digital and physical offerings across multiple channels and devices.

• Deliver media digitally through new revenue models – free trials, flexible subscriptions or fully self-service.

Become an audience-centric media enterprise.

• Deliver personalized engagements at every stage of the customer journey.

• Learn from and adapt to every customer interaction and ensure follow-up engagements are relevant.

• Leverage analytics to convert data into key audience insights.

Finance

Devices

Content Providers

Digital Core

HR

A single source of financials to improve Providing a flexible environment for skills efficiency, increase visibility and lower cost. and performance assessment.

• Organizations that use 360-degree financial • Enable growth and sustainability by providing processes enable their people to collaborate choice in the delivery of HR processes and more efficiently and use business insight more services. effectively.

Audience experience

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Mill Products

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SAP S/4HANA on-premise Value Proposition Mill Products: Major business benefits Applicable Business Priorities S/4HANA

Profit-driven Supply Chain

Plant and Asset Operations Excellence

Sustainable Customer Relationships

Industry Specific Benefits

Exemplary Metrics

      

Material Resource Planning Production Planning Production Scheduling Basic Order Promising Goods Issue/Receipts Basic Warehouse Management Basic Shipping

Avoid supply chain disruptions/costs by tracking material movements in real-time

        

Maintenance Planning and Scheduling Maintenance Execution Project Financial Control Project Logistics Control Basic Subcontracting/External Processing Production Processing Corporate Quality Quality Planning, Control and Operations Credit Collections Management

Optimize mill and plant production capacity, quality and profitability: • Use sensor data to predict machine failures or product quality deviations • Consider skills, toolsets and resources in scheduling maintenance activities • Standardize calculation and visualization of metrics like OEE or Energy Usage across plants

Increase return on assets by 10%

     

Order and Contract Management Sales Planning and Monitoring Analytics Sales Contract Management Sales Order Management and Processing Billing and Invoice Management Receivables Management and Payment Handling

Deliver a uniform digital experience through every channel : • Arm your sales reps with key insights while at the customer • Integrate social intelligence into the selling and marketing processes • Streamline the complaint process and provide seamless support across channels

Productivity overall time savings by 30%

• Anticipate change to manage risks and leverage opportunities • Use real-time plant floor data to improve delivery decisions • Deliver the target quality and appropriate service level to different customer segments

Reduce overall supply chain planning costs by 9% Increase on-time delivery performance by 1% Decrease cycle time for forecast by 7%

Cut MRO inventory by 11% Reduce unplanned downtime or outages by 16%

Lower IT cost by 20% Reporting accelerate run-times by 98%

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SAP S/4HANA on-premise Value Proposition Mill Products: Major business benefits Applicable E2E process with S/4HANA (generic)

Finance

Procurement Excellence

Service

Industry Specific Benefits

Exemplary Metrics

        

Profitability and Cost Management Product Cost Management Cash and Liquidity Management Financial Risk Management Receivables Process Analytics Accounts Payable/Receivable Corporate/Entity Close Asset/Inventory Accounting Corporate Financial Management

Allow for visibility into the state of the business at any time: • Enable real-time financial close for faster, more accurate, and more collaborative decision making and execution enterprise-wide • Consolidation of financial data enabling corporate visibility into each business entity • Discover and discourage fraudulent activities also in remote locations and by contingent workforce

Increase drill-down levels by 3%

       

Procurement Analytics Classification and Segmentation Supplier Evaluation Sourcing Contract Management Self-Service Requisitioning Invoice Management Receivables Management and Payment Handling

Eliminate supply disruption risk while protecting margins: • Collaborate instantly with global suppliers via the Ariba Network • Monitor real-time commodity price-and-supply volatility • Consolidate local purchases to support negotiations to receive global discounts, improved terms and other benefits • Eliminate off-contract purchasing

Reduce MRO obsolescence

      

Claims, Returns and Refund Management Service Execution and Delivery Service Initiation and Control Warranty Management Contract and Engagement Management Periodic Billing Processing Service Contract and Controlling and Accounting

Make services part of the R&D process • Consider returns and service requirement in the development of new products • Improve customer value by adding services to standard products

Reduce treasury & cash mgt. costs by 7%

Decrease compliance & risk mgt. costs by 6%

Reduce MRO out of stocks by 36% Decrease inventory and safety stocks by 29%

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SAP S/4HANA Transforms Mill Products business processes Reimagine business processes for fundamentally higher performance

Supplier collaboration and business networks

Digital Core

Customer experience omni-channel

Profit-Driven Supply Chain

Plant and Asset Operations Excellence

Sustainable Customer Relationships

Avoid supply chain disruptions/costs by tracking material movements in real-time

Optimize mill and plant production capacity, quality and profitability:

Deliver a uniform digital experience through every channel :

• Anticipate change to manage risks and leverage opportunities

• Use sensor data to predict machine failures or product quality

• Arm your sales reps with key insights while at the customer

• Use real-time plant floor data to improve delivery decisions

• Consider skills, toolsets and resources in scheduling maintenance activities

• Integrate social intelligence into the selling and marketing processes

• Deliver the target quality and appropriate service level to different customer segments

• Standardize calculation and visualization of metrics like OEE or Energy Usage across plants

• Streamline the complaint process and provide seamless support across channels

HR

Assets & Internet of Things

Finance

Procurement

Manage, develop, reward, and retain a global workforce:

Allow for visibility into the state of the business at any time:

Eliminate supply disruption risk while protecting margins:

• Analyze and use creative best practices to counter competition and aging population

• Enable real-time financial close for faster, more accurate, and more collaborative decision making and execution enterprise-wide

• Collaborate instantly with global suppliers via the Ariba Network

• Universally increase time spent on strategic projects © 2016 SAP SE or an SAP affiliate company. All rights reserved.

• Monitor real-time commodity price-and-supply volatility

Total workforce management

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Value Map 2016 for Mill Products (see all details on sap.com/Solution Explorer - Mill Products) Profit-Driven Supply Chain

Plant and Asset Operations Excellence

Sustainable Customer Relationship

Areas of Important Improvements in S/4HANA Profit-Driven Business Planning

Manufacturing Execution and Visibility

Contextual Marketing

Supply, Production, and Order Response Management

Asset Operations and Maintenance

Order to Cash Including Configurable Products

Efficient Logistics and Order Fulfillment

Asset Network

Digital Transformation of Commerce

Commodity Management

Environment, Health and Safety

Differentiating Service

Quality Management

Human Resources

Core Human Resources and Payroll

Talent Management

Time and Attendance Management

Human Capital Analytics

Finance

Financial Planning and Analysis

Accounting and Financial Close

Treasury and Financial Risk Management

Finance Operations

Enterprise Risk and Compliance Management

Strategic Sourcing and Supplier Management

Direct Procurement

Self-Service Procurement

Services Procurement

Travel Management

Application Platform and Infrastructure

Data Management

Procurement Excellence Invoice Management

Platform and Technology

Analytics

IT Management

Security Software

Platform and Technology Spotlights

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Mining

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SAP S/4HANA on-premise Value Proposition Mining: Major business benefits Applicable Business Priorities S/4HANA

Commodity Supply Chain Management

      

Material Resource Planning Production Planning Production Scheduling Basic Order Promising Goods Issue/Receipts Basic Warehouse Management Basic Shipping

    

Mine Operations

Maintenance Planning and Scheduling Maintenance Execution Project Financial Control Project Logistics Control Basic Subcontracting/External Processing  Production Processing  Corporate Quality  Quality Planning, Control and Operations

Industry Specific Benefits

Exemplary Metrics

Optimize mine production and sales plans based on current financial data: • More reliable ore forecast with improved reports of plan vs. actual deviations • Improve availability of MRO materials in stock and in transit • Improved visibility into MRO and spare part inventories of nearby warehouses • Avoid delivery glitches for bulk and non-bulk shipments by having real-time visibility into status and costs

Reduce overall supply chain planning costs by 9%

Detect inefficiencies, perform proactive maintenance on mine assets to maximize uptime

Cut MRO inventory by 11%

•

Use real-time analytics to drill down into the root-cause of production shortfalls from mine-level operations

Increase return on assets by 10%

•

Improve project cost controls throughout the mine life-cycle: development, production and closure

•

Better visibility and tracking of ore quantities and quality from pit to port

•

Simplified and accelerated maintenance scheduling with improvements in allocation of staff, toolsets and MRO materials

•

Standardize calculation and visualization of metrics like OEE or energy usage across plants/locations

•

Higher overall equipment effectiveness (OEE)

Increase on-time delivery performance by 1% Decrease cycle time for forecast by 7%

Reduce unplanned downtime or outages by 16% Increase Return on Assets by 10% Improve effectiveness of operation equipment by 35%

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SAP S/4HANA on-premise Value Proposition Mining: Major business benefits Applicable Business Priorities S/4HANA

Operational Risk and Compliance Management

    

Incident Management Health and Safety Management GRC Access Control GRC Process Control Fraud Management

Industry Specific Benefits Manage operational risk and regulatory compliance

Exemplary Metrics Lower Auditing costs by 30%

•

Discover and discourage fraudulent activities also in remote locations and by contingent workforce

•

Improved ability to prevent incidents and reduce severity of incidents by learning from earlier actions.

More-efficient risk and control management processes by 50%

•

Use real-time analytics to drill-down into the root-cause of health and safety incidents

Reduce time to complete accident reports by 80%

•

Improved worker access to health and safety information

•

Reduce operational risks by providing plant managers with comprehensive risk data for analytics

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SAP S/4HANA on-premise Value Proposition Mining: Major business benefits Applicable E2E process with S/4HANA (generic)

Finance

Procurement Excellence

Industry Specific Benefits

Exemplary Metrics

        

Profitability and Cost Management Product Cost Management Cash and Liquidity Management Financial Risk Management Receivables Process Analytics Accounts Payable/Receivable Corporate/Entity Close Asset/Inventory Accounting Corporate Financial Management

Allow for visibility into the state of the business at any time: • Enable real-time financial close for faster, more accurate, and more collaborative decision making and execution enterprise-wide • Improved real-time visibility into actual costs • Consolidation of financial data enabling corporate visibility into each business entity • Improve liquidity, lower working capital and short-term loans by reducing risks from commodity price volatility

Increase drill-down levels by 3%

       

Procurement Analytics Classification and Segmentation Supplier Evaluation Sourcing Contract Management Self-Service Requisitioning Invoice Management Receivables Management and Payment Handling

Eliminate supply disruption risk while protecting margins: • Enable digitization: integration with Ariba enables small suppliers to book orders which transfer directly to S/4HANA • Monitor real-time commodity price-and-supply volatility • Secure social license to do business by ensuring local sourcing and community engagement • Consolidate local purchases to support negotiations to receive global discounts, improved terms and other benefits • Eliminate off-contract purchasing

Reduce MRO obsolescence

Reduce treasury & cash mgt. costs by 7%

Decrease compliance & risk mgt. costs by 6%

Reduce MRO out of stocks by 36% Decrease inventory and safety stocks by 29%

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SAP S/4HANA Transforms Mining business processes Reimagine business processes for fundamentally higher performance

Workforce engagement

Digital Core Optimized Mine Operations Detect inefficiencies, perform proactive maintenance on mine assets to maximize uptime • Predict machine failures • Use real-time analytics to drill down into the root-cause of production shortfalls from mine-level operations

HR

Assets & Internet of Things

Supplier collaboration Business networks

Commodity Supply Chain Management

Operational Risk and Compliance Management

Optimize mine production and sales plans based on current financial data:

Create safe and economic operations across the mining value chain:

• Align sales aspirations with production realities by combining real-time market and operations data in rolling forecasts

• Collect sensor data from wear-ables to improve operational yields with less health and safety risks

• Avoid delivery glitches for bulk and non-bulk shipments by having real-time visibility into status and costs

• Avoid challenges to social license-to-operate by tracking public discussions throughout exploration, mine operations to re-naturalization

Finance

Procurement

Manage, develop, reward, and retain a global workforce:

Allow for visibility into the state of the business at any time:

Eliminate supply disruption risk while protecting margins:

• Analyze and use creative best practices to counter competition and aging population

• Enable real-time financial close for faster, more accurate, and more collaborative decision making and execution enterprise-wide

• Collaborate instantly with global suppliers via the Ariba Network

• Universally increase time spent on strategic projects

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

Mine production

• Monitor real-time commodity price-and-supply volatility

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Value Map 2016 for Mining (see all details on sap.com/Solution Explorer - Mining) Commodity Supply Chain Management

Mine Operations

Operational Risk and Compliance Management

Long-Term Business Planning

Project and Portfolio Management

Environment, Health and Safety

Commodity Management

Mine Operations and Downstream Processing

Product Safety and Stewardship Network

Bulk and Non-Bulk Transportation Management

Asset Operations and Maintenance

Corporate Sustainability

Areas of Highest Value in S/4HANA

Asset Network

Human Resources

Core Human Resources and Payroll

Talent Management

Time and Attendance Management

Human Capital Analytics

Finance

Financial Planning and Analysis

Accounting and Financial Close

Treasury and Financial Risk Management

Finance Operations

Enterprise Risk and Compliance Management

Strategic Sourcing and Supplier Management

Direct Procurement

Self-Service Procurement

Contingent Workforce Management

Services Procurement

Travel Management

Invoice Management

Analytics

Application Platform and Infrastructure

IT Management

Security Software

Procurement Excellence

Platform and Technology

Data Management

Platform and Technology Spotlights

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Oil & Gas

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SAP S/4HANA Transforms Oil & Gas business processes Reimagine business processes for fundamentally higher performance

Workforce engagement

Integrated Digital Oilfield Operations

Capital and Spend Effectiveness Eliminate supply disruption risk while protecting margins: • Collaborate instantly with global suppliers via the Business Network

Increase asset utilization and make better operations decisions with improved data flows, analytics and collaboration across reservoirs, wells, and facilities :

• Monitor real-time commodity price-andsupply volatility

• Analyze real-time data to make better quality managerial decisions

• Automate procurement proposal creation based on real-time inventory

• Quickly drill-down into problem areas and identify root causes • Converge production, maintenance, engineering, and financials at all levels of the enterprise

Digital economy and Big data

Supplier collaboration business networks

Digital Core

Operational Integrity

Hydrocarbon Supply Chain Perfect visibility and delivery across the full hydrocarbon value chain: • Quickly determine if it is more profitable to pay a premium now vs. waiting for local supply to replenish fuels • Enhance collaboration among service station operators, 3rd-party carriers, and consumers to leverage new ways to automate processes for sourcing and supplying refined products

Optimize asset availability, minimize downtime, and eliminate unplanned outages: • Predict asset failures via connected maintenance • Schedule preventive maintenance based on real-time view of assets and financial impact

Finance

HR

Allow for visibility into the state of the business at any time:

Procure, on-board, manage, and develop a global direct and contingent workforce:

• Enable real-time financial close for faster, more accurate, and more collaborative decision making and execution enterprise-wide

• Integrate end-to-end HR, procurement and financial processes for budget and head count

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

Stakeholder experience

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Professional Services

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High Impact

SAP S/4HANA on-premise Value Proposition Professional Services: Major business benefits Applicable E2E process with S/4HANA (generic) Business Development and Sales

Project and Managed Services Business

Finance

 Bid

 

& Proposal Management

Business Development and Sales

Medium Impact Project and Managed Services Business

Procurement

Industry specific Benefits  Analyze previous bids and resulting engagements and create reliable engagement bids and resultant budgets

 Monitor engagement performance online at any time and detect service delivery issues or forecast margin impairments  Proactive alerts drive direct action and cross-project analysis to easily Project and Engagement Management identify profitable customers and projects Managed Services Contract Management  Achieve consistent compliance with service-level agreements by automating the verification of entitlements  Customized service packages that drive new revenue streams while developing lasting customer relationships.

Accounting and financial close Financial Planning and Analysis Collaborative Finance Operations

 Accelerated closing processes such as work in progress and allocations  Integrated planning and real time variance analysis  Allow for visibility into the state of the business at any time by  real-time analysis to make timely, relevant decisions  single source of data for both managerial and financial accounting  The boundaries between front and back office are eliminated with collaborative collections process to ensure maximum revenue recovery

Limited Impact

Talent Supply Chain

Finance

Exemplary Metrics*

10% improved win rate

1% margin improvement

7% higher customer satisfaction

26% fewer days to close annual books

25% fewer days sales outstanding

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*SAP benchmarking, software implementation or Preliminary results from ramp-up customers © 2016 SAP SE or an SAP affiliate company. All rights reserved.

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SAP S/4HANA transforms Professional Services business processes Reimagine business processes for fundamentally higher performance

Workforce engagement

Digital Core Business Development and Sales

Project Based Business Monitor all project KPIs in real time to drive profitability:

Immediately connect clients to new services:

•

Connect back office data with sales development in real time and better engage customers

• Monitor project performance and immediately predict profit outcomes

• Instantly leverage project history to develop new solution offerings and pricing models

Enable instant insight into customer interactions to identify new opportunities

• Leverage real time project resource requirements connected to talent resources to accelerate fulfilment of resource demands

• Accelerate execution of service requests with instant insight

Finance

Talent Supply Chain

Managed Service Business

Drive real-time account management with a 360-degree customer view:

•

Assets & Internet of Things

Talent supply chain Business networks

Accelerate project ramp up with holistic workforce and talent management : • Simulate and predict talent supply and demand scenarios and financial impact • Leverage social media and talent networks to attract the best talent

Sourcing and Procurement

Allow for visibility into the state of the business at any time:

Leverage business networks to meet compliance requirements, while cutting costs and risks :

• Enable real-time financial close for faster, more accurate, and more collaborative decision making and execution enterprise-wide

• Collaborate with your suppliers and contingent workforce to meet stringent savings targets with simple self service ordering and automate approval flows.

Customer experience omni-channel

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Public Sector

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SAP S/4HANA on-premise Value Proposition

Operational Excellence

Public Sector: Major business benefits Applicable E2E process with S/4HANA (generic) Operational Excellence

Economic Prosperity

   

Strategic Planning and Performance Real-Time Analysis, Awareness and Prediction Assets and Infrastructure Integrated Mobility and Transport

  

Contribution, Revenue and Taxes Payment Enforcement and Debt Recovery Economy, Jobs and Labor Market  Fraud, Assurance and Compliance

Economic Prosperity

Procurement

 Saving lives  Reducing losses  improving livability

 Provide world-class services to citizens with a great digital experience  Automate and streamline service delivery processes for social protection and drive positive citizen and social outcomes  Integrate governance, regulations, and licensing to create an open government that can compete in the global economy.

Human Resources

 Core Human Resources and Payroll

 Optimizing end-to-end payroll process  Reducing processing time  Increasing quality of results of payroll process and insight into payroll

Budget and Finance

 Public Sector Budget Planning  Public Sector Financials  Treasury and Financial Risk Mitigation  Enterprise Risk and Compliance  Collaborative Finance

Citizen Needs

   

Citizen Needs

Human Resources

Exemplary Metrics*

80% increased response rate to infrastructure issues

Low or zero touch taxation 360° real-time taxpayer view and improved compliance Increasing collection rate Increasing flexibility for legislation / policy changes Preventing fraud and abuse

Digital Experience Social Protection and Benefits  Governance Regulation and Licensing

 

Resilience and Security

Budget and Finance

Industry specific Benefits

    

Limited Impact

Medium Impact

High Impact

Accelerating reporting cycles and reconciliation Improving real time budget information Reducing time to close books Increasing accuracy and transparency

-15% Cost per interaction

40% Reduced closing time

*SAP software implementation or Preliminary results from ramp-up customers © 2016 SAP SE or an SAP affiliate company. All rights reserved.

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SAP S/4HANA Transforms Public Sector business processes Reimagine business processes for fundamentally higher performance

Workforce engagement

Digital Core Meeting Citizen Needs

Sustainable Government Funding Prevent fraud and non-compliance with an end-to-end compliance solution: • Achieve end to end enterprise fraud management: • Analyze fraud patterns in real time • Setup detection rules and calibrate detection strategies • Execute mass and real-time detection and stop noncompliant business transactions

Human Resources Improve employee engagement and business outcomes by more easily and effectively attracting, developing, and retaining the right talent: • Integrate end-to-end HR and financial processes

Business networks

Public Security

Improve citizen engagement:

• Reduce complexity with a single view of government and simplified services that can be easily consumed via any device and channel • Garner real-time 360-view of all citizen activities across all channels

Understand on scene active emergency situations in real time: •

Distill multiple sources of data on a visually intuitive mapping interface to uncover actionable insight.

•

Monitor and evaluate situations to improve decision making.

• Personalize self-service capabilities delivered to constituents via their preferred time, channel and device

Budget and Finance

Procurement

Capital investment projects

Allow for visibility into the state of the enterprise at any time:

Drive sustainable savings while supporting innovation:

Secure the success of complex investment projects for construction and real estate:

• Enable real-time financial close for faster, more accurate, and more collaborative decision making and execution enterprise-wide

•

•

Assets & Internet of Things © 2016 SAP SE or an SAP affiliate company. All rights reserved.

Obtain the speed, efficiency, and collaboration to mitigate risks and control your costs.

Support detailed planning for projects and cost controlling and compare actual and forecasted project costs.

Constituent experience Omni-channel

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Retail

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SAP S/4HANA on-premise Value Proposition

R&D / Engineering

Retail: Major business benefits

Sales

Procurement

Limited Impact

Medium Impact

High Impact

Manufacturing

Supply Chain

Aftermarket Service

Human Resources

Finance

•

IS-Retail and Fashion processes are not released part of the SAP S/4HANA Enterprise Management 1511 (OP and Cloud) release.

•

First release of SAP S/4HANA Merchandise Management** is planned to be released 1611 (OP only).

•

Retail offering regarding S/4HANA until 1611 consists of the following solutions which are S/4HANA branded: •

SAP S/4HANA Finance standalone or w/ SAP Merchandising (ERP Retail) on SAP HANA

•

SAP Customer Activity Repository and consuming applications (e.g. Assortment Planning, Promotion Planning)

•

Optional S/4HANA components such as SAP S/4HANA Cloud Marketing Edition Applicable E2E process with S/4HANA (generic)  Real-time

Sales

mission-critical business processes across your entire enterprise  One single source of live information and truth for finance and operations  Prediction, simulations, what-if analyses for retail planning and optimization  Personalized user experience on any device

 Finance

Predict cash flow using buyer behavior forecasting  Perform financial close quickly and accurately  Gain real-time visibility into customer and vendor accounts

Industry specific Benefits

Exemplary Metrics*

 Faster business outcomes with reduced operational cost thanks to a simpler IT  Enterprise-wide consistency and minimized errors especially critical for finance  Increased competitiveness with integrated, fast, and flexible business processes

lower DSO for organizations with lower Average Sales Discount

 Faster financial close and lower costs and Single source of truth, no planning silos in applications  Lower TCO and higher through-put  Easy to adapt through customer specific dimensions and planning functions

35%

65% Faster financial close processes

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*SAP software implementation or Preliminary results from ramp-up customers; ** Internal working title as official name not yet defined © 2016 SAP SE or an SAP affiliate company. All rights reserved.

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SAP S/4HANA Transforms Retail business processes Reimagine business processes for fundamentally higher performance

Digital Core

Workforce engagement

Customer centric Marketing & Merchandizing

Sourcing Procurement & Private Label

Supplier collaboration business networks

Omnicommerce Customer Experience

Supply chain

Maximize revenue generation with real-time customer insights and predictive analysis

Connect to global Business networks and increase procurement efficiency:

Enable flexible and reliable Omnichannel deliveries

Deliver compelling, seamless, and reliable shopping experiences

•

Understand your customers in detail for targeted promotions to granular segments

• Collaborate instantly with global suppliers via the Ariba Network

• Create one unified view at demand everywhere

•

Use real-time customer analytics for personalized offers at the moment of decision

•

Create relevant assortments based on direct customer insights

• Enable endless aisles with large complementary assortments

• Optimize inventories with real time visibility

•

Create effective, targeted customer engagement across channels

•

Respond to changes in demand and adjust pricing and promotions in real time

• Automate procurement proposals based on real-time inventory and sales forecasts

• Drive real time response to granular changes across the supply network

•

Empower your store and sales personnel with a single view at the customer

Finance

HR

Allow for visibility into the state of the business at Manage, develop, reward, and retain an effective any time: workforce:

Assets & Internet of Things

• Enable real-time financial close for faster, more • Integrate end-to-end HR and financial accurate, and more collaborative decision processes for budget and head count making and execution enterprise-wide • Develop the right talent and skill set in a • Perform soft-close to understand store and changing environment with demanding category level profitability in real time customers

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

Omni-customer experience

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Telecommunications

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Medium Impact

High Impact

SAP S/4HANA on-premise Value Proposition

Customer Engagement & Commerce

Telecommunications: Major business benefits Applicable E2E process with S/4HANA (generic) Customer Engagement & Commerce

Revenue & Margin Optimization

Operational Excellence

Procurement Excellence

Billing and revenue innovation management Sales planning and performance management

Accounting Billing and revenue innovation management

  

Supplier Collaboration Supplier information and master data Maintenance

 Operational procurement  Invoice and payables management  Operational sourcing and contract

management

Finance

Accounting and financial close Accounting Cost management and profitability analysis

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

Revenue & Margin Optimization Human Resources

Operational Excellence Finance

Industry specific Benefits  Increase efficiency and productivity by streamlining the complex channels  Improve customer insights  Improve customer retention by tailoring contracts and offerings  Reduce cost for the finance department by automating postings  Generate high-quality results required by international and local financial reporting standards  Improve compliance and auditability by enabling production and publication of reliable, complete, and auditable financial and regulatory statements  Collaborate on fulfilling orders  On-time delivery of orders through multichannel options  Optimize maintenance activities by providing all relevant information  Faster order and invoicing cycle times with fewer errors and ability to drive early payment discounts  Improve contracting and compliance with comprehensive contract management solution  Send and receive digitally signed, legally compliant invoices electronically  One source of truth for finance and operational data  Instant insight to enable timely and relevant decisions, with no lag time  Predictive, what-if analysis and simulation for continuous business and financial planning *SAP Performance Benchmarking

Limited Impact

New Digital Business Procurement Excellence

Exemplary Metrics*

+17% Pipeline growth when cross and up-sell opportunities are proactively pursued

14% Better response with realtime integration to the customer order system

28% Savings through increased contract compliance

-29% Process cost when analysis is based on a single source of truth

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SAP S/4HANA Transforms Telco business processes Core Business Processes and Challenges Digital Core Customer Engagement & Commerce Drive customer engagement and sales by offering a unified omni-channel experience • Boost revenue by delivering a contextual experience across all touch points • Create profitable digital services with flexible pricing • Provide real-time service control for a better subscriber experience

Revenue and Margin Optimization

Operational Excellence

Improve organizations financials strategy, alignment and agility

• Support consistent standards and efficient processes for reduced cycle times

• Gain transparency and insight boost profitability, reduce risk and comply with international and local accounting standards

Automate and streamline complex, highvolume invoice processes & purchasing documentation • Facilitate Simple, fast, touchless, and error-free purchasing, invoice & payment process through the Ariba Network © 2016 SAP SE or an SAP affiliate company. All rights reserved.

• Manage assets, improve profitability and create effective multichannel delivery • Ensure the right products are at the right location at the right time

• Enable staff to collaborate more efficiently and use business insight more effectively

Procurement

Enable Telcos to become more efficient

New Digital Business Generate new sources of revenue using innovative digital business services • Build a sustainable Internet of Things business beyond plain connectivity.

• Optimize maintenance strategies based on asset criticality

• Create new revenue by running applications in the cloud for businesses of any size – any industry.

• Improve productivity and safety with information always accessible online or offline.

• Monetize the value of rich customer behavior data in an anonymized and aggregated form.

Finance

• Expand service offerings for retailers, advertisers, that drive faster decision making.

Human Resources

Allow for visibility into the state of the business at any time:

Manage, develop, reward, and retain a global workforce:

• Enable real-time financial close for faster, more accurate, and more collaborative decision making and execution enterprise-wide

• Integrate end-to-end HR and financial processes for budget and head count

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Travel and Transportation

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SAP S/4HANA on-premise Value Proposition Travel and Transportation: Major business benefits Applicable E2E process with S/4HANA Asset Management

Sales & Marketing

Human Resources

Procurement

 Asset

Operations and Maintenance and Incident management  Equipment Lifecycle Management  Safety

Sales planning and performance management Omni-channel Service Excellence  Customer experience and engagement Billing and Revenue Innovation Management

 Manage,

develop, reward, and retain a global, empowered workforce

 Supplier information and master data  Operational procurement, sourcing

and contract management  Invoice and payables management Finance

Sales & Marketing Procurement

Limited Impact

Medium Impact

High Impact

Operations

Finance

Industry specific Benefits • Support the transition from a static, time- and usage-based to a dynamic, condition- and predictive maintenance strategy based on remote diagnostics data in real-time • Increase asset availability, reliability and customer service.

Reduce maintenance and compliance related costs.  Maximizing opportunities and wins through real-time forecasting and analytics as well as collaborative sales force automation • Increase traveler experience through personalized and contextualized marketing across different channels • Simplify complex billing processes and reduce Days Sales Outstanding • Integrate end-to-end HR and financial processes for budgeting • Increase employee engagement and retention  Improve compliance and reduce maverick spend  Reduce operational expenses through fully automated P2P process

 Allow for visibility into the state of the business at any time by Accounting and financial close  real-time analysis to make timely, relevant decisions Cost management and real-time profitability  one common view to ensure enterprise-wide consistency & minimize analysis reconciliation • Instant digital trail improves DSO with lower disputes

Asset Management Human Resources

Exemplary Metrics*

-18% Unplanned outages when using preventive vs reactive maintenance Source: SAP and customer benchmarks

20% Increase in mediation and rating performance

86% faster real-time analytics

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*SAP software implementation or Preliminary results from ramp-up customers © 2016 SAP SE or an SAP affiliate company. All rights reserved.

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SAP S/4HANA Transforms Transportation business processes Reimagine business processes for fundamentally higher performance

Digital Core

Workforce engagement

Sales and Marketing

Operations

Immediate alignment of sales contracts and operational services:

Immediate and continual visibly to the entire order lifecycle:

• “Productize’ services

• Instantly inform customers and immediately mitigate problems in the logistics network

• Improves performance and drives higher rates of customer satisfaction • Instantly target bids and quotes that match demand

Supplier collaboration business networks

• Automate charge management with real-time events matched against contract requirements • Real-time simulation to predict network bottlenecks with alternatives

Finance

Asset Management Immediately leverage historical operational and asset data to deliver uninterrupted transportation and logistics services • Digitally connected asset maintenance linked to operational impact • Instantly rebalance assets in the network for maintenance and repair processes integrated directly with operations.

HR

Allow for visibility into the state of the business at Manage, develop, reward, and retain a global any time: workforce:

Assets & Internet of Things

• Enable real-time financial close for faster, more • Integrate end-to-end HR and financial accurate, and more collaborative decision processes for budget and head count making and execution enterprise-wide

Customer experience

• Instant digital trail improves DSO with lower disputes

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SAP S/4HANA Transforms Travel business processes Reimagine business processes for fundamentally higher performance

Workforce engagement

Supplier collaboration business networks

Digital Core Strategic Demand Management

Operations and Asset Management

Immediately account for resources across a variety of transportation routes or hospitality properties by offering the right packages and services:

Immediately leverage historical operational and asset or property data to deliver uninterrupted travel experiences:

• Digitally connected asset and property maintenance • Immediate, sound decisions based on relevant profitability insight • Immediate sense of operations costs – back office connected to • Optimized fuel procurement and real time consumer engagement risk management for quick market changes

Finance

Omnichannel Marketing Immediate, relevant understanding of the traveler at all times throughout the journey: • Anticipate the behavior of potential guests • Connect constantly with travelers to assist throughout their journey to create loyal brand advocates

Omnichannel Sales and Service Immediately service your travelers and guests throughout the journey to change they way you secure long term loyalty: • Real-time, consistent service experience across channels and brands • Optimize each interaction by connecting them with the right content in real time

HR

Allow for visibility into the state of the business at Manage, develop, reward, and retain a global any time: workforce:

Assets & Internet of Things

• Enable real-time financial close for faster, more • Integrate end-to-end HR and financial accurate, and more collaborative decision processes for budget and head count making and execution enterprise-wide

Traveler experience Omni-channel

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Utilities

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Medium Impact

High Impact

SAP S/4HANA on-premise Value Proposition Utilities: Major business benefits Applicable E2E process with S/4HANA (generic)  Fuel

Supply Chain Management

Energy Supply Chain Optimization

Operational Efficiency for Plants & Grids

The Intelligent Grid

Customer Experience

Asset Operations and Maintenance Asset Network

 

 

   

Meter Logistics and Operation Services Measurement Data Management

Omni-channel Contextual Marketing Sales and Customer Service For Residential Customers Sales and Customer Service For Commercial and Industrial Customers Bill to Cash for Utilities

Energy Supply Chain Optimization

Operational Efficiency for Plants & Grids

Industry specific Benefits  Reduced inventory cost by  real time view on inventory levels and real time information on supplier capacities  Simulation of delivery capabilities by faster MRP runs  Reduce maintenance costs by having an efficient maintenance strategy and executing it  Improve asset availability and performance by enabling maintenance engineers to detect emerging issues and fix equipment long before failures occur (Predictive Maintenance)  Increase asset utilization by knowing all relevant data in real-time  Reduce number of days from meter reading to invoicing by receiving the meter readings remotely, on schedule, or on demand  Enable Ad-Hoc settlements to avoid additional cost in Energy Portfolio Management  Increase performance of market-settlement operations for large amounts of smart meters  Target customers effectively and in real-time after understanding their sentiment and preferences  Create customer segmentation models in minutes  Increase call center efficiency and customer satisfaction by predicting customer behavior  Provide decision support based on operational analysis in real-time *SAP internal test/benchmark **Benchmarks achieved in customer projects

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

The Intelligent Grid

Customer Experience

Exemplary Metrics*

Faster Material Requirement Planning Process

>30x faster scheduling of maintenance plans*

18% Lower unplanned outages with predictive maintenance approach*

>25x faster asset investment planning process**

50x faster load forecasting**

90x faster Energy Data Settlement**

13% Increase in interactions per day when agents are provided with comprehensive-up-to-date customer views* Back Public

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SAP S/4HANA Transforms Utilities business processes Reimagine business processes for fundamentally higher performance

Workforce engagement

Supplier collaboration Business networks

Digital Core Operational efficiency for plants and grids

Fuel supply chain optimization

The intelligent grid

Customer experience

Reduce fuel costs and speed order to delivery

Maximize asset availability and reduce unplanned outages

Reduce energy waste and eliminate energy shortages

Improve customer loyalty and reduce cost of service per customer

 Integrate the supply chain by

 Offer a single, real-time view of

 Optimized energy consumption through smart meters and demand-side management

 Provide a 360-degree, real-time

bringing suppliers and buyers together through business networks

plant and business performance

 Analyze asset performance in real-time

 Provide an accurate reconciliation between production capacity and demand

Finance

 Optimize operational performance through the convergence of IT/OT systems and processing big data

view of the customer

 Insight into customer behavior and sentiment in real-time

HR

Allow for visibility into the state of the business at Manage, develop, reward, and retain a global any time: workforce:

Assets & Internet of Things

• Enable real-time financial close for faster, more • Integrate end-to-end HR and financial accurate, and more collaborative decision processes for budget and head count making and execution enterprise-wide

Customer experience omni-channel

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Wholesale Distribution

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Medium Impact

High Impact

SAP S/4HANA on-premise Value Proposition

Opportunity to Cash

Wholesale Distribution: Major business benefits Applicable E2E process with S/4HANA (generic) Opportunity to Cash

Procure to Pay

 Collaborative sales force automation  Collaborative quote to cash  Transparent service process and operations

 Direct procurement  Strategic sourcing and

supplier management

Procure to Pay

Human Resources

Finance and General Trading

Industry specific Benefits  Smart Business Applications like Advanced Sales Order Fulfillment Cockpit deliver real-time and relevant information to the sales rep helping to  Improve “Perfect Order” ratio  Increase customer satisfaction and loyalty  Faster decision making, reduce operational costs of order processing

 Working on real-time data it’s possible to run MRP on-request instead of batch  Real-time data and improves on-time delivery, lowers inventory write-offs and increases inventory turnover

Platform and Technology

 Platform and Technology  Analytics  Data Management

Spotlights

 New User Experience helps simplify business tasks, ensures fast learning curve and reduces total cost of ownership with task based applications that require few mouse clicks to execute  Embedded (Contextual) Analytics brings real-time information to the user when it matters ensuring fact-based decisions

Finance and General Trading

 Accounting and Financial  Finance Operations

Close

 Cut significant time from period-end close  Faster real-time analytics  Faster cost postings

Supply Chain Planning and Execution

Profitability Optimization

Demand Management Sales, inventory, and operations planning Warehouse Management

Cost recovery and rebates

Supply Chain Planning and Execution

 Real-time high volume processing eliminates former bottlenecks in Supply Chain Execution to achieve  Fewer stock outs  Improved order fulfillment  Lower safety stock levels  Increased flexibility for handling rebate programs and support for individually tailored rebate programs to increase sales to B2B customers

Limited Impact Profitability Optimization

Platform and Technology

Exemplary Metrics*

+72% Operating margin where users have access to relevant cost information

-15% Lower Cost indirect, direct, and services procurement from SAP

62% Users rate real-time contextual analytics as a key capability

86% faster real-time analytics

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*SAP software implementation or Preliminary results from ramp-up customers © 2016 SAP SE or an SAP affiliate company. All rights reserved.

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SAP S/4HANA Transforms Wholesale business processes Reimagine business processes for fundamentally higher performance

Workforce engagement

Digital Core Procure to Pay

Opportunity to cash Build customer loyalty and grow revenue and profitability: • Use real-time data to deliver the perfect order • Provide sales team with mobile access to current data • Drive new revenue with real-time multi-channel customer service

Streamline procurement processes, drive compliance, and cut costs and risks: • Collaborate with suppliers in realtime driving efficiency gains • Instantly identify risks by managing all direct procurement activities in one place

Finance

Assets & Internet of Things

Supplier collaboration business networks

Allow visibility into the state of the business at any time: • Execute a soft close to gain early insight into profitability • Predict changes to increase organizational agility, control costs, and align execution with strategy

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

Supply chain planning and execution Transition to demand networks from supply chain silos: •

Integrate inventory planning with business goals in an easy, collaborative environment

•

Leverage instant insight to manage warehouses with improved quality and cost

Profitability Optimization Gain insight and focus on the most profitable customers, products, and suppliers: • Monitor the entire supply chain and report activities in real time • Instantly capture agreement and transaction data, manage claims, and control changing agreements

HR Manage, develop, reward, and retain a global workforce: • Integrate end-to-end HR and financial processes for budget and head count • Attract, develop, and retain the right talent to improve business outcomes

Customer experience omni-channel

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Contacts Michael Lamade Global Head of S/4HANA Industry Program

Holger Brammer Director GPO Portfolio Management ERP Solutions

SAP SE

SAP SE

+49 160 3603219 michael.lamade@sap.com

+49 151 53858821 holger.brammer@sap.com

www.sap.com

www.sap.com

Dr. Martin Klein Global Vice President Public Services Partner Management SAP SE +49 6227 761576 marti.klein@sap.com www.sap.com