Unit 1: Key Trends and Terms

Technology-Enabled Human

Mobile devices Bluetooth

(hands-free format) or other
wearers that communicate with the Internet
via voice commands

Wearable technology with Human-Machine

an optical head-mounted display (OHMD) co-operation /
(augmented reality devices) assistance

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 2

Four Phases of Industrialization

1 2 3 4

End of Beginning of Early 1970s Today

th
18 century 20th century
Use of water and steam Use of electrical power to Use of electronics and Use of cyber-physical systems to
power to run mechanical enable work-sharing mass IT to automate monitor, analyze, and automate
production facilities production production business

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 3

Thank you

Contact information:

open@sap.com
© 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 http://global12.sap.com/corporate-en/legal/copyright/index.epx 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 forward-
looking 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.

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 5

Unit 2: Smart Services
From Repairing to Preparing

Example SAP

Business data
Maintenance/service history,
sales contract, costs...

Product data
Energy, runtime,
vibrations, …

Third-Party Data
Structured and unstructured,
such as weather forecast

Data sources Realtime analytics Smart Services

© 2015 Acatech. All rights reserved. 2

Converting Big Data into Smart Data

Benefits:
Problems of Algorithm Solutions for
industrial partners Expertise  New insights
industrial partners
Big Data Smart Data  New business
Exchange of opportunities
Know-how
 Strategic
cooperation
Global
Science
Community

© 2015 Acatech. All rights reserved. Source: Foschungscampus MÒDAL 3

Smart Services
Industry Examples

Manufacturing Energy Logistics Healthcare Agriculture

 Industry 4.0  Smart Grid:  Smart Trucks  Personalized  Smart Farming:
dynamic pricing,  Smart Spaces: (automated) monitoring weather
increased efficiency route optimization  Patient-centric: and soil conditions
 Virtual Plants reducing costs of for optimum point
medical care of harvesting

© 2015 Acatech. All rights reserved. Source: Own illustration based on Accenture 4
Disruptive Business Models

Example: Patient-centric Health Provision and Prevention

Smart Lenses
 Continued glucose-monitoring via sensors
built into contact lenses
 Individualized, real-time insulin provision
 Optimized nutrition A world of
smart devices
Smart Fitness Tracking
is emerging
 Fitness apps support the achievement
of athletic goals / motivate the user
 Collection of personal activity patterns

© 2015 Acatech. All rights reserved. Source: Own illustration based on Accenture 5
Thank you

Contact information:

open@sap.com
© 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 http://global12.sap.com/corporate-en/legal/copyright/index.epx 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 forward-
looking 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.

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 7

Unit 3: Effects on Society
The Smart Factory Is Not Free of Humans
There is greater scope for employee participation and decision-making
 Fewer blue-collar production workers, more white-collar jobs, for
example:
Systems planning, engineering, integration into existing landscapes
Performing tasks that cannot be automated
Coordination and orchestration
 Networked, interdisciplinary working environment
 Wider variety of tasks performed by individual employees
 Shorter induction and learning periods

 Fewer “machine operators”, more experts and decision-makers

 Fewer prescribed ways of working, more autonomy
 Lifelong learning, flexible management of work content and working time

© 2015 Acatech. All rights reserved. 2

Personalized Learning Based on Augmented Reality Technologies

Industrial environment Industrial worker with Tools

(augmented reality) glasses

mobile, interactive, and situation-aware tutoring

© 2015 Acatech. All rights reserved. Source: W. Wahlster, DFKI 3

Thank you

Contact information:

open@sap.com
© 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 http://global12.sap.com/corporate-en/legal/copyright/index.epx 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 forward-
looking 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.

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 5

Unit 4: Challenges and
Opportunities for Society
Cyber-Physical Systems
Digital Networks of Communicating Intelligent Objects

The Internet of Data & Services  Digital networks do

Economy Culture … not emerge in isolation
Cloud computing, Big Data, semantic technologies, digital marketplaces …  The digital economy
necessitates new
security paradigms
Mobility & Manu- Energy Health …
Logistics facturing
Smart Mobility Smart Product Smart Meter Smart Senior
Smart Logistics Smart Factory Smart Grid Smart Health

Sensor-clouds, open standards, security …

The Internet of Things

© 2015 Acatech. All rights reserved. 2

The Internet of Things Leads to Business
Transformation

 The Internet of Things, Data and Services (“Internet of everything”) will be the key infrastructure
of the next industrial revolution.
 The digital convergence of industries will dissolve the boundary between industrial and service economy
(“everything as a service”).
 New data-based (“Smart Data”) and consumer-oriented (“Smart Services”) business models create both
opportunities and challenges.

 Opportunity Industry 4.0 Transformation of enterprises: “Smart Products” are used as a platform for
innovative services and business models and realize new growth potential.
 Challenge of
Smart Services New digital infrastructures are key for disruptive business models.

© 2015 Acatech. All rights reserved. 3

Thank you

Contact information:

open@sap.com
© 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 http://global12.sap.com/corporate-en/legal/copyright/index.epx 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 forward-
looking 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.

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 5

Unit 5: Key Trends and Terms –
Digital Transformation and Business
Reaching the End User with New Services

Added Value for

the Company

Reimagine business by delivering

new connected services

Transform process

Connect product
Internet of Things Maturity Level

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 2

Predict Malfunction of Products and Provide New Services

Remotely sense operational data from equipment

Sense

Analyze and monitor equipment data and correlate with business

information to predict future malfunctions
Monitor, Analyze,
Predict

Optimize maintenance and service operations and enable new business

models around the equipment
Act

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 3

Thank you

Contact information:

open@sap.com
© 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 http://global12.sap.com/corporate-en/legal/copyright/index.epx 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 forward-
looking 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.

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 5

Unit 6: Smart Software for
Smart Services
Building Blocks of the Internet of Things

 Sensors (devices with sensing capabilities)

 Connectivity (data interpretation and transmission)
 Device management (device and software configuration,
monitoring, and lifecycle management)
 Open integration and application platforms (cloud-based or
hybrid)
‒ Device data capture and storage
‒ Application enablement services
 Applications and Big Data analytics
‒ Use case-specific business applications
‒ Device-data visualization and analytics
 Mobile user access

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 SAP Internet of Things-Based Solutions for Industry 4.0
Assets &
Moving Assets & Enhanced Prediction Business Networks
Manufacturing

SAP Connected SAP Connected SAP Connected SAP Connected SAP Connected
Logistics Logistics FP1 Logistics FP2 Logistics FP3 Logistics FP4

SAP Predictive SAP Predictive SAP Predictive SAP Predictive SAP Predictive
Maintenance and Maintenance and Maintenance and Maintenance and Maintenance and
Service Service FP1 Service FP2 Service FP3 Service FP4

SAP AR SAP Vibration SAP Vibration

SAP AR Analysis for Pred.
Service Technician Analysis for Pred.
Service Technician Maint. & Serv. FP1
FP1 Maint. & Service

SAP AR IoT Application IoT Application

SAP AR IoT Application
Warehouse Picker Service FP3 Service FP4*
Warehouse Picker Service FP2
FP1

SAP Manufacturing SAP Manufacturing SAP Manufacturing

Execution Execution (ME/MII) Execution (ME/MII)
(ME/MII) 15.0 15.0 FP 1 15.1

Car Telematics Asset Intelligence

(Early Adoption) Network

Released in Q4/2014 Planned innovations in 2015

FP = Feature Pack
IoT = Internet of Things
ME/ MII = Manufacturing Execution / Manufacturing Integration and Intelligence © 2015 SAP SE or an SAP affiliate company. All rights reserved.
Business Value of Predictive Maintenance

Operator View
 Higher overall equipment effectiveness (asset availability & performance & quality)
 Improve maintenance efficiency
 Lower maintenance costs
 Higher mean time between failure
 Lower mean time to repair

Manufacturer View
 Improve service profitability with lower service costs and new revenue streams
 Higher first-visit-fix rate
 Customer satisfaction and retention
 Higher service contract renewal rates
 Enable new innovative business models

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 4

Thank you

Contact information:

open@sap.com
© 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 http://global12.sap.com/corporate-en/legal/copyright/index.epx 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 forward-
looking 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.

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Unit 7: Enabling Technologies
 SAP HANA Cloud Platform for the Internet of Things

Connected Smart Connected Anti- Smart Predictive Connected

Car Vending Logistics Collision City Maintenance Manufacturing

SAP HANA Cloud Platform

for the Internet of Things

End Customer Internet of Things Applications Business Owner

SAP HANA Cloud (SAP, Partner, and Custom Apps)
(On Site) SAP HANA (SAP Customer)
Internet of Things
Cloud Integration
Services
Device SAP Connector
SAP S / 4HANA /
SQL Anywhere / SAP HANA Cloud Platform Business Suite
MobiLink
Device
SAP Event
Stream Processor
Device
SAP HANA Platform for Big Data
Machine Process
Integration Integration

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

SAP Connected Logistics at Hamburg Port Authority

Hamburg Port is the largest port in Germany and

the second largest in Europe.
Current turnover: 9 million containers/year.
By 2025, an increase to 25 million containers is
expected.

Goal: Utilize the current infrastructure and

increase container turnover by optimizing
container traffic while reducing idle time for
carriers.

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 3

SAP Connected Logistics – Logistics Networks (Example Port)

Logistics Service OnDemand

Provider Services from SAP and
Goods and Containers 3rd Parties

SAP HANA Cloud Platform

Telematics Offering
Investment Management Geolocation and Traffic Terminal Operator Shipping Monitoring
Infrastructure Monitoring Loading and Unloading Seaways

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 4

Thank you

Contact information:

open@sap.com
© 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 http://global12.sap.com/corporate-en/legal/copyright/index.epx 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 forward-
looking 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.

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Unit 8: Challenges and
Opportunities for Business
Reimagine your customer’s experience

...by empowering
innovative new business
models, value-added
services, and customer-
responsive products

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 2

Thank you

Contact information:

open@sap.com
© 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 http://global12.sap.com/corporate-en/legal/copyright/index.epx 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 forward-
looking 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.

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 4