The Internet of Things Our Strategy and Direction: Driving Customer Value
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1 The Internet of Things Our Strategy and Direction: Driving Customer Value Michael Lynch 2015 Internal
2 2015 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see for additional trademark information and notices. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE s or its affiliated companies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forwardlooking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions SAP SE or an SAP affiliate company. All rights reserved. Internal 2
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4 Connecting information, people, and things is greatest resource ever to drive insightful action Internet of content Internet of people Internet of things 8 billion Connected people on the web 75 billion Connected devices 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 4
5 IoT will make us more insightful, more human 70% potential reduction in CO 2 emissions from smart lighting 5.6t in savings from autonomous connected vehicles Agricultural technology can cut food prices in half, increase crop yields by 22% potential annual cost savings in manufacturing potential margin impact through supply chain efficiencies 67% $500b 50% reduction in shrinkage in retail grocery stores 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 5
6 Capturing your share of the value-at-stake Industries are investing now! $14.4T increased revenues and lower costs from 2013 to %+ Planning IoT investments Retail Mining Oil and gas $1.1B $3B $4.2B $4.2B $10B $10.5B Transportation $4.5B $8B 65% Projects driven by IT Departments IM&C $2.7B $5B in 2013 in 2017 Sources: 2015 Cisco, SAP SE Oxford an SAP affiliate company. All rights reserved. Internal 6
7 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 8
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11 Connect with billions of internet-enabled things to gain new insights..by combining business data with intelligent analysis of new signals from devices, networks & more 2015 SAP SE or an SAP affiliate company. All rights reserved. 15
12 Transform the way you make decisions and take action..by executing operational processes through predictive and automated response all the way to the edge of the network 2015 SAP SE or an SAP affiliate company. All rights reserved. 16
13 Reimagine your customer s experience..by empowering innovative new business models, valueadded services and customer responsive products 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 17
14 Internet of Things for Business Maturity Value Added Value for the Company Extend new service Monetize usage Reimagine Logistics, Track & Comply Just in time training Transform Processes Vendor Ranking Operational Awareness Transform Replenishment Quality Mgmt. based on line Remotely operate/automate Fully utilize Connect Secure assets & stock PdMS, Min Downtime Maturity 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 18
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17 Source: Hagleitner presentation at SAP Executive Summit Industrie October 23/24 th SAP SE or an SAP affiliate company. All rights reserved. 21
18 2015 SAP SE or an SAP affiliate company. All rights reserved. 22
19 2015 SAP SE or an SAP affiliate company. All rights reserved. 23
20 2015 SAP SE or an SAP affiliate company. All rights reserved. 24
21 Business Networks will be at the center of IoT efficiency! Asset Information Network Travel planning and management made easy find the right suppliers for critical parts balance peaks in workforce demand Keep track of all configuration and service history of your high-value asset Asset Manufacturer Supplier Ranking Provider Ranking 3 rd Party Service Provider Remote Service Management New business models around the device Service Engineer Service Technician Installation and repair services SAP Predictive Maintenance and Service Asset Operator Customer Service Billing Physical Asset Level Maintenance Engineer Predictive Maintenance for critical assets 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 25
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23 Apps led platform strategy will reinforce many SAP offerings HCP, HCI, S-Innovations, Network, and Core Apps will all benefit from IoT data 1 2 Capture Data Action Data 3 3 rd party application development 3 Use Data to Drive Development Data-out 1 IoT Apps Data-In Outcome SAP Machine Cloud HANA Cloud Platform In App Action 2 Context HANA Cloud Integration Data-out Extensions of SAP Offerings Networks Business Suite S Innovations 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 27
24 SAP will deliver IoT applications, platforms, and facilitate extensions of IoT solutions Embed with Hardware partnerships (HCP integration to customize apps) Extend for Custom Solutions (Platform to enable Partner development) Enable Sell SAP IoT Solutions Enabled (IoT enabled LoB/Ind LOB/Ind SaaS Solution) 6 months 1-2 years Long Term 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 28
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26 Enabling the Internet of Things with SAP solutions IoT Predictive Maintenance & Service IoT Connected Manufacturing IoT Connected Logistics IoT Augmented Reality IoT Innovation Bundle 2015 SAP SE or an SAP affiliate company. All rights reserved. 30
27 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 31
28 2015 SAP SE or an SAP affiliate company. All rights reserved. 32
29 Dynamics Solution Overview Value and References Next Steps SAP Predictive Maintenance and Service Process Increase effectiveness Effectiveness is the capability of producing a desired result Predictive Maintenance and Service IT / OT Connectivity Condition Monitoring Remote Service Fault Pattern Recognition Machine Health Prediction Increase efficiency Time, effort or cost is well used for the intended task or purpose Create Maintenance or Service Order Schedule Order Execute Order on mobile device Visual Support SAP ERP Non-SAP Apps 2014 SAP SE or an SAP affiliate company. All rights reserved. 33
30 John Deere reimagining business models "We are moving from a manufacturing company to a solutions-based enterprise" 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 34
31 Kaeser Compressors reimagining customer service Our predictive maintenance solution has enabled us to proactively attend to maintenance needs and increase service levels for customers 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 35
32 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 36
33 Dynamics Solution Overview Value and References Predictive Maintenance and Service Delivers significant business value to asset manufacturers and operators Next Steps Asset Manufacturer Asset Operator Improve service profitability with lower service costs and new revenue streams Higher percentage of calls resolved Higher first-visit-fix rate Customer satisfaction and retention Higher service contract renewal rates Enable new business models Higher overall equipment effectiveness (asset availability & performance & quality) Improve maintenance efficiency Lower maintenance costs Faster reaction to alarms and failures Higher mean time between failure Lower mean time to repair 2015 SAP SE or an SAP affiliate company. All rights reserved. 37
34 Harley Davidson enabling responsive manufacturing with SAP Connected MFG -7% +19% Reduced Cost Net Margin Reduced lead time to produce customized motorbikes from 21- day cycle to 6 hours! 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 38
35 Hamburg Port Authority - steering course for the connected port of the future 2015 SAP SE or an SAP affiliate company. All rights reserved. Our aim is to gradually interconnect all modes of transport from waterways and roads all the way to the railway 39
36 Dynamics Solution Overview Value and References Next Steps SAP Connected Port Logistics Standard roles and look-and-feel: Hub operator & Dispatcher Manages network monitors anonymous traffic maintains geo fences and points of interest informs of incidents & sends notifications (automatic using geo fence or manual) 2014 SAP SE or an SAP affiliate company. All rights reserved. 40
37 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 41
38 Value Key Value Propositions: Optimize complete hub ecosystem with real-time transparency Capture the geo location of transportation means Define geo fences for automatic notifications Monitor transportation units as they move along the supply chain Collaborate with direct and indirect business partners Key Executives: CFO, VP Supply Chain/Operations Key Benefits and KPIs The solution helps optimize inbound and internal hub traffic, which leads to: Increased goods throughput Improved efficiency through process automation Reduction of waiting times and manual monitoring Increased infrastructure utilization 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 42
39 Customer Examples IM&C Predictive Maintenance & Service Connected Manufacturing Connected Logistics T&L Other Energy Automotive 2015 SAP SE or an SAP affiliate company. All rights reserved. 43
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41 Internet of Trains Platform The Platform designed for the Internet of Trains initiative is based on SAP HANA, and is fully integrated with the existing relevant systems inside the system landscape CONNECTED TRAINS TRANSACTIONAL SYSTEMS EXTERNAL DATA SOURCES RULE ENGINE PREDICTIVE ENGINE PLANNING ENGINE 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 45
42 Building synchronized retail 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 46
43 Enabling a connected driving experience 2015 SAP SE or an SAP affiliate company. All rights reserved. 47
44 2015 SAP SE or an SAP affiliate company. All rights reserved. 48
45 SAP Connected City Resource Utilization Commuting Behavior Real-time Operations Measuring Efficiency Preference Analysis Causal Analysis 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 49
46 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 50
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48 Partners We have great partner SI support 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 52
49 SAP & Jasper Partnership to support global connectivity! $ 120 network affiliates Enterprise Enterprise pays SAP for the IoT Applications Jasper Provides Global View of all partner operators and facilitates the process for SAP enterprise customers to get connected with Telco Operators $ Invoice for Connectivity to Enterprise comes from Telco Jasper Carrier Partners 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 53
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51 Customer Journey Build Pipeline through Key Accounts, Events 1 week & Workshops Innovation Workshop & Strategic Alignment (Engage IoT Team) Use Case Prioritization Technical Deep dive Present IoT Success Map OPEN THE ENGAGEMENT VALUE & SUCCESS! 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 55
52 Lot s of supporting content Strategy and Messaging Social presence, leveraged at 50+ SAP/3rd party events 20 events (Dcode, Select, I4.0, Iot World, IoT west, IoT London, M2M product of Year) 15 analysts, numerous customers and partners Completed global enablement sessions 1,000+ Registrants Unified Jam communities & monthly call with 2,000+ members SAP Internet of Things SAP Internet of Things IoT Whitepaper 20 Customer Stories Videos 18 IoT Demos IoT Sales Plays At a glance Battlecards, etc. Join Community Call! Link on the Landing Page SAP Internet of Things / Industrie SAP SE or an SAP affiliate company. All rights reserved. Internal 56
53 Thank you! Michael Lynch Global Co-Lead, SAP Internet of Things SAP SE or an SAP affiliate company. All rights reserved. Internal 57
54 2015 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see for additional trademark information and notices. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE s or its affiliated companies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forwardlooking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions SAP SE or an SAP affiliate company. All rights reserved. Internal 58
55 2015 SAP SE oder ein SAP-Konzernunternehmen. Alle Rechte vorbehalten. Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, ohne die ausdrückliche schriftliche Genehmigung durch SAP SE oder ein SAP-Konzernunternehmen nicht gestattet. SAP und andere in diesem Dokument erwähnte Produkte und Dienstleistungen von SAP sowie die dazugehörigen Logos sind Marken oder eingetragene Marken der SAP SE (oder von einem SAP-Konzernunternehmen) in Deutschland und verschiedenen anderen Ländern weltweit. Weitere Hinweise und Informationen zum Markenrecht finden Sie unter Die von SAP SE oder deren Vertriebsfirmen angebotenen Softwareprodukte können Softwarekomponenten auch anderer Softwarehersteller enthalten. Produkte können länderspezifische Unterschiede aufweisen. Die vorliegenden Unterlagen werden von der SAP SE oder einem SAP-Konzernunternehmen bereitgestellt und dienen ausschließlich zu Informationszwecken. Die SAP SE oder ihre Konzernunternehmen übernehmen keinerlei Haftung oder Gewährleistung für Fehler oder Unvollständigkeiten in dieser Publikation. Die SAP SE oder ein SAP-Konzernunternehmen steht lediglich für Produkte und Dienstleistungen nach der Maßgabe ein, die in der Vereinbarung über die jeweiligen Produkte und Dienstleistungen ausdrücklich geregelt ist. Keine der hierin enthaltenen Informationen ist als zusätzliche Garantie zu interpretieren. Insbesondere sind die SAP SE oder ihre Konzernunternehmen in keiner Weise verpflichtet, in dieser Publikation oder einer zugehörigen Präsentation dargestellte Geschäftsabläufe zu verfolgen oder hierin wiedergegebene Funktionen zu entwickeln oder zu veröffentlichen. Diese Publikation oder eine zugehörige Präsentation, die Strategie und etwaige künftige Entwicklungen, Produkte und/oder Plattformen der SAP SE oder ihrer Konzernunternehmen können von der SAP SE oder ihren Konzernunternehmen jederzeit und ohne Angabe von Gründen unangekündigt geändert werden. Die in dieser Publikation enthaltenen Informationen stellen keine Zusage, kein Versprechen und keine rechtliche Verpflichtung zur Lieferung von Material, Code oder Funktionen dar. Sämtliche vorausschauenden Aussagen unterliegen unterschiedlichen Risiken und Unsicherheiten, durch die die tatsächlichen Ergebnisse von den Erwartungen abweichen können. Die vorausschauenden Aussagen geben die Sicht zu dem Zeitpunkt wieder, zu dem sie getätigt wurden. Dem Leser wird empfohlen, diesen Aussagen kein übertriebenes Vertrauen zu schenken und sich bei Kaufentscheidungen nicht auf sie zu stützen SAP SE or an SAP affiliate company. All rights reserved. Internal 59
56 Business Strategies Customer Centricity Transform Supply Chain and Logistics into Demand Networks Personalized Solutions Connect Products, Assets and Manufacturing to Product Networks Improve People s Lives Gain real-time network insights with Internet of Things
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