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Week 1 Unit 3: Value

Proposition for Businesses

Value Proposition for Businesses


The digital economy is a reality

93%
of employees in companies where
CEOs have shared their vision for
digital transformation feel that it is the
right thing for the organization.*
*Source: MIT/HBR Digital Change Survey

2015 SAP SE or an SAP affiliate company. All rights reserved.

Deliver exceptional
experiences to your
customers across every
channel of interaction

Customers

Resources

People
To enable the workforce of
the future employees and
contingent labor
IoT

Social

Business network

of business leaders said that


achieving digital transformation will
become critical to their organizations
within the next two years.*

Manage materials, assets, money,


and other resources better

Omnicommerce

78%

The Digital Value Chain

Enable frictionless
commerce by managing
suppliers better

Suppliers

Other

All lines of business running in real time on a digital business platform


The digital value chain

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Value Proposition for Businesses


The digital economy is transforming business functions

Sales and Marketing

Manufacturing

Finance

Maintenance

Personal and contextaware

Connected and
customized

Real-time and integrated

Predictive and intelligent

Target a segment of one with


context-based advertising and
on-the-fly offers
Influence buying behavior
across channels with deep,
customer-specific engagement
Discover hidden trends and
propensity to buy from internal
and external data sources
Provide flexible productpersonalization options

Manufacture with batch sizes


of one for increased customer
order flexibility
Connect the Internet of Things
(IoT) for increased automation
Realize zero inventory and
zero waste with advanced
planning and analytics
Enable intelligent demand
response and scheduling

Predict cash flow using buyer


behavior forecasting
Perform financial close quickly
and accurately
Process and monitor invoices
in real time
Integrated capital market data
to optimize cash management
Gain real-time visibility into
customer and vendor accounts

Utilize sensory data for realtime status and monitoring


Alert operators to the need for
preventative maintenance
actions with mobile
connectivity
Plan downtime intelligently and
automatically with predictive
analytics
Provide enhanced customer
service using context-aware
Big Data insights

2015 SAP SE or an SAP affiliate company. All rights reserved.

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Value Proposition for Businesses


and disrupting industries

NETFLIX

LEGO

John Deere

Content is increasingly available on


demand over any device with a data
connection

From blocks to bytes: Customer


engagement now includes online
games and communities

Heavy equipment is increasingly taking


advantage of new connection and
automation technology

Personalized recommendations are


automatically pushed to every
subscriber based on advanced
analytics and Big Data

Crowd-sourced set designs are voted


on, reviewed, and produced

Farmers can remotely monitor sensor


data and equipment status

Some sets now include online


multimedia elements that take
advantage of new digital technologies

Big Data and analytics combine to


make planning, planting, and
harvesting more precise and efficient

Producers can reach consumers


directly without traditional distributor
relationships

2015 SAP SE or an SAP affiliate company. All rights reserved.

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Value Proposition for Businesses


Why? The innovation adoption model for digital transformation
Transformational
Level

Business
Impact

Business
Processes

Business
Model

NEW BUSINESS
MODELS

Business innovation
New customers
New markets

NEW

NEW

Improved
PRODUCTS

Optimize products
Offer new products/services

NEW

OLD

Improved
PROCESSES

Improve single processes


Replace single processes
Change end-to-end processes

NEW

OLD

Improved
DECISIONS

Transparency
Decision support
Decision automation

OLD

OLD

Technical
SOLUTION

Velocity

2015 SAP SE or an SAP affiliate company. All rights reserved.

Business
Outcome

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Value Proposition for Businesses


But the greatest barrier to digital transformation is complexity

Complex technology

Complex decision making

Complex business processes

<1%

40%

61%

of todays data is being turned


into business benefits

of executive time is wasted on


non-revenue-generating activity

of CEOs want to simplify


business operations

225 billion in annual profits are lost by the worlds top 200 companies (10% of profits)
2015 SAP SE or an SAP affiliate company. All rights reserved.

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Value Proposition for Businesses


SAP S/4HANA designed to reimagine business
Reimagined
business models

Reimagined
business decisions

Simplicity to connect to people,


devices, and business networks

Simplicity to get any insight on


any data from anywhere

S/4
HANA

Reimagined
business processes
Simplicity to focus on the essential tasks
and change business processes

2015 SAP SE or an SAP affiliate company. All rights reserved.

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Value Proposition for Businesses


Digitize beyond the core, embrace the digital economy
Digital Economy

Digital Core

Digital Transformation

Internet
of Things

Segment of 1

User Empowered
Instant insight I Contextual information I Personalized experience

Business
networks

Process Enriched

Lot size of 1

Scalability I Real time I Prediction I Simulation

Devices

Live Data

At scale

Big Data

No latency

Granular I Responsive I Accurate

Social
networks
People

SAP R/3 value play


SAP S/4HANA value play

2015 SAP SE or an SAP affiliate company. All rights reserved.

Leading-edge processes I Integrated system


Digital transformation of business models

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Value Proposition for Businesses


Value scenarios of SAP Simple Finance

Real-time analytics enabling real-time processes


Analyze

Plan

Transact

Centralize Finance
Real-time financial and operational reporting
Harmonized internal and external reporting
Group reporting in multi-ERP and M&A situations
Flexible reporting in matrix organizations
Centralized process execution

Close Books in a Day


Task acceleration
and automation
Intra-period reconciliation
Soft close and simulation
(planned)
2015 SAP SE or an SAP affiliate company. All rights reserved.

Plan Dynamically
Integrated business
planning
Predictive forecasting
Budget management
(planned)

$ Optimize Working Capital

Group cash management


Working capital analytics
Continuous cash collections
Invoice and discount
optimization

Ensure Compliance
Fraud detection and
prevention
Audit management

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Value Proposition for Businesses


Value scenarios for other Line of Business

Removing locking issues cut post-processing


Comprehensive Analytics
Accelerate business decisions
with focus on event-based
reaction (like material shortage)
and with integrated decision and
simulation support

MRP runs several times


per day
Provide analysis and identify
disruptions in the material
flow

Optimize Backorder
Processing
Backorder processing with intuitive
requirement classification, simple
selection criteria, and automatic
exception handling

2015 SAP SE or an SAP affiliate company. All rights reserved.

Plan Dynamically
Better visibility into
inventory and product
data

Comprehensive ATP
Fast and precise ATP
confirmation for customers
increases service level

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Thank you

Contact information:
open@sap.com

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