SAP For Automotive: Industry Briefing Book

SAP for
Automotive
Industry Briefing
Book
Edition 2
January 2012
Comments and questions: larry.stolle@sap.com

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and
SAP for Automotive
Run Better Drivers Transformation Solutions
Innovations Proof Points Strategy Take Away
Comments and questions: larry.stolle@sap.com

Run Better Drivers Transformation Solutions Innovations Proof Points Strategy Take Away
What does “Run Better” mean for automotive?
Run Better
Brand loyalty/ Raw and finished goods
KPIs customer retention inventory
Value Potential
Examples
 Kongsberg New product time to Manufacturing and supply
 LUEG market lead times
 Volkswagen
Market share Retail channel

profitability
Quality, recall, and

warranty performance
© 2011 SAP AG. All rights reserved. 4

Large disparity between average and best
Run Better
KPIs 9.7% best

Value Potential
Examples 9.7% best
 Kongsberg
 LUEG
 Volkswagen
xxx best
Operating Margin % Time-To-Market

(in months)
Source: SAP Value Engineering data 2011

The best are leading the way
Run Better
KPIs
Value Potential
Examples
€17.7
 Kongsberg 50% 360°
million
 LUEG
 Volkswagen
Reduction in product Quicker processing Increase in revenue
development lead of quarterly results
times

Run Better Kongsberg Automotive, 50% Reduction in product development

based in Kongsberg, lead times
KPIs Norway, makes and delivers 30% Reduction in new product introduction
Value Potential gearshifts and seating parts process costs
for the international
Examples
automotive industry. € Decreased cost in tooling and
 Kongsberg prototypes through reuse of
Operating in a highly
components
 LUEG competitive environment, the
 Volkswagen company believes that its very Calculated ROI in 1.5 years
survival depends on effective
processes. Increased R & D user satisfaction
Consolidated document management
systems for product development
Enhanced collaboration with external
partners

Run Better Fahrzeug-Werke LUEG AG, 360° 360-degree view of

located in Bochum, customer and vehicle data
KPIs Germany, has an annual
Value Potential revenue of €600 million and Greater integration of data and
1,600 employees. It provides processes across the enterprise
Examples
a full range of automotive Enhanced customer
 Kongsberg
dealership services from communications
 LUEG sales of new and used
 Volkswagen vehicles, through vehicle
repair and spare parts, to Obtained greater flexibility for future
leasing and insurance. LUEG challenges and growth
needed to replace its Big bang implementation completed
heterogeneous legacy IT in just nine months
landscape with an integrated
solution that would improve Migrated historical objects spanning
transparency, lay a foundation more than 30 years
for future growth, and enhance Delivered fast, simple access to key
customer service and facts and figures with improved
communications to deliver reporting and analytics
improved retail profitability and
retain satisfied customers.

90% Improved data accuracy from

Run Better Headquartered in 45% to 90%
Wolfsburg, Germany, Realized additional €17.7
KPIs Volkswagen AG is the €17.7
million million revenue by improved
Value Potential largest automobile customer loyalty and
Examples
manufacturer in Europe. It is process optimization
striving to grow sales and
 Kongsberg Ability to speak to customer
market share and to become
 LUEG #1 in the world by 2018. To with one voice
 Volkswagen reach those goals, One-to-one marketing through powerful
Volkswagen knew that brand analytics
loyalty combined with
customer satisfaction and Integrated environment for effective
retention were of paramount data exchange
importance. It had to retain Improvement in interdepartmental
and grow its current customer collaboration
base through improved
communication and Improvement in customer acquisition
satisfaction, built on improved and loyalty
data accuracy. Holistic view of both customer and
vehicle data

Innovation drivers in automotive

Increasing customer demands, the need for efficiency, and
environmental complexity are driving constant innovation.
Drivers
Intense automotive
competition
Macroeconomic
environment
Technology and
innovation
Government and
environmental
regulation

Intense automotive competition
Drivers Fast time to market Brand value and Competition for,

Intense automotive
for innovative customer and untapped
competition products retention value potential in,
the aftermarket
Macroeconomic
environment
Technology and
innovation
Government and
environmental
regulation

Macroeconomic environment
Drivers Fluctuation in oil Raw material Suppler and OEM

Intense automotive
prices changes shortages and price mergers and
competition buyer behavior volatility complicate divestitures change
production the landscape
Macroeconomic
environment
Technology and
innovation
Government and
environmental
regulation

Technology and innovation
Drivers Competition Increasing software Sustainability and

Intense automotive
forces faster content drives green initiatives are
competition innovation cycles innovation complexity increasingly
important
Macroeconomic
environment
Technology and
innovation
Government and
environmental
regulation

Government and environmental regulation
Drivers Safety and quality Fuel economy Financial reporting

reporting are public standards impact regulations demand
Intense automotive
competition design and demand enterprise-wide
transparency
Macroeconomic
environment
Technology and
innovation
Government and
environmental
regulation

Without SAP
Business Challenges
Transformation • R&D lacks real time

OEM collaboration capability and
Without SAP transparency with
development partners
With SAP
• Manufacturing and
SAP’s Value
Logistics suffer from
Suppliers Importer/Distributor/NSC inefficient processes which
lead to high operational
Marketing,
Supply costs, buffer inventories
Sales, R&D
Chain
Service and long lead times
Manu- • Supply Chain is deficient
Procure- Sustain-
facturing
ment ability
Customers in visibility and ability to
& Logistics
react to variability in the
supply network
IT Finance HR
• Marketing, Sales and
Dealer Service processes are
Sub Groups/Dealers impaired by poor visibility
Suppliers
and coordination which
limits customer
satisfaction, retention and
market share growth

With SAP
Coordinated and integrated systems and processes
Transformation • R&D accelerates time to

OEM market with integrated
Without SAP collaboration across the
design and partner
With SAP
ecosystem
SAP’s Value
• Manufacturing and
Suppliers Importer/Distributor/NSC Logistics is lean and
efficient with improved
Marketing,
Supply control, execution and
Sales, R&D
Chain
Service synchronization.
Manu- • Supply chain is
Procure- Sustain-
facturing
ment ability
Customers responsive, flexible and
& Logistics
adaptive across distributed
manufacturing and supply
IT Finance HR networks
Dealer • Marketing, Sales and
Sub Groups/Dealers Service has complete
Suppliers
views of customers and
vehicles resulting in
increased revenue,
satisfaction and market
share

SAP helps increase market opportunity, achieve profit

goals, and grow market share
Transformation
Without SAP
With SAP
SAP’s Value
Deliver high quality, Increase customer Reduce inventory,
innovative products satisfaction, retention, lead times, and
and services and market share operational costs
SAP unique capability SAP unique capability SAP unique capability
Collaboratively engage all Provide aligned Deliver lean

partners with a single set customer-oriented sales manufacturing and supply
of product data to speed and service processes processes with improved
design, make more- based on 360-degree control, execution, and
informed decisions, and views of customer and synchronization
accelerate market vehicle
introduction

SAP solutions for automotive
Solutions
Work in progress - coming soon!

Customer centric and innovation driven

SAP’s strategy for automotive
Innovations
Solutions Solution Innovations

 Recent innovations
• GSS
 Road map
 GSS Virtual Assembly
• EMO for DI Delivery Innovations
• EMO for DI – New
User Interface
Technology
 In-memory computing
 Mobility
Technology Innovations
 Business analytics
Delivery
• Customer co-innovation
• Ecosystem
Future

SAP solution innovations for automotive
Innovations
Solutions
• GSS Marketing,
Supply
 Road map Sales, R&D
Chain
• GSS Virtual Assembly Service
• EMO for DI
User Interface
Manu-
Procure- Sustain-
Technology facturing &
Logistics ment ability
 Mobility
Delivery
• Customer co-innovation IT Finance HR
• Ecosystem
Future

Selected solution innovations

Available today
Innovations Sales, service, and marketing Manufacturing and logistics

 Dealer business management  Optimized production based on lean
Solutions
solution principles
• GSS  Campaign management with high-  Process security and enablement of
 Road map speed segmentation “poka-yoke” (mistake-proofing) principles
• GSS Virtual Assembly  Predefined marketing performance
• EMO for DI
dashboards
User Interface
Technology Supply chain

 In-memory computing Product development
 Mobility  Guided structure synchronization  New transportation management solution,
 Business analytics enabled including integrated distribution processes
 Enhancements for integrated for synchronized execution
Delivery  Condition monitoring and traceability
product development (user
• Ecosystem interface, visualization, and  Enhanced service parts planning with
analytics) multivendor, multilevel subcontracting
Future  Embedded product compliance  Enhanced support for claims and returns
 New scenarios for intercompany third-
party order processing


Guided structure synchronization (GSS)
Innovations
Generic engine that supports the transformation (complex restructuring)
Solutions of bills of material and memorizes all changes of the transformation to
 Recent innovations provide guidance for continuous updates of these transitions.
• GSS
 Road map
Preconfigured solution, at a fixed price, based on best practices in the
• GSS Virtual Assembly
• EMO for DI
areas of engineering and production structures.
User Interface Quick time-to-value implementation methodology enables customers to
Technology go live in six to eight weeks.
 Mobility
Delivery
• Ecosystem
Future

Selected automotive solution innovations

Road map
Innovations Sales, service, and marketing Manufacturing and logistics

 Easy data handling through native  Improved quality inspections, labor
Solutions
access and improved user interface reporting and product genealogy
• GSS (UI)  Shop floor inventory visibility
 Road map  Productivity improvements  Modular configuration and Support of
• GSS Virtual Assembly multimode manufacturing
• EMO for DI
 Enhanced graphical views
User Interface
Technology Supply chain

 In-memory computing Product development
 Mobility  Visual assembly  Improvements for advanced planning
 Business analytics  Bill of material (BOM) redlining and optimization usability, including
forecasting improvements
Delivery  Status and release management
improvements  Global and cross-system batch
traceability
• Ecosystem  New UI for document browser
 Product issue reporting
Future
 Project management orchestration
with Microsoft Project  Product genealogy across procurement,
production, and logistics


Guided structure synchronization – virtual assembly
Innovations Visual assembly

Solutions  Workbench for
 Recent innovations routing
• GSS management
 Road map
 Visual support to
assemble and
• EMO for DI
create routings
User Interface (working plans)
Technology  Improved usability
 In-memory computing for BOM
 Mobility management – tree
 Business analytics structure
Delivery
• Ecosystem
Future
Streamlined process support for simultaneous product and manufacturing
engineering


Efficient manufacturing operations for discrete industries (DI)
Innovations  Better shop floor inventory visibility
Solutions
 Clear planning and execution of sampling for quality inspections
 Recent innovations  Reviewing and editing of labor time for more accurate production
• GSS accounting
 Road map
• GSS Virtual Assembly  Tracking of earned value for a production unit and at the operation
• EMO for DI level for better labor reporting
• EMO for DI – New  More complete and in-depth view of product genealogy
User Interface
Technology
 Mobility
Delivery
• Ecosystem
Future


Efficient manufacturing operations for discrete industries (DI)
Innovations New user interface

Solutions
 Recent innovations  Ease of setup and configuration
• GSS  Modular configuration supports customer process/workflow requirements
 Road map
• GSS Virtual Assembly  Supports multimode manufacturing in both high-volume and complex
• EMO for DI assembly environments
User Interface  Utilizes graphics to better identify and communicate work instructions and
defects
Technology
 Mobility
Delivery
• Ecosystem
Future

Technology innovations
Innovations
Solutions
In-Memory Computing Mobility
• GSS
 Road map
• EMO for DI
User Interface
Technology
 Mobility
 Business analytics Business Analytics
Delivery
• Ecosystem
Future

SAP in-memory computing for automotive

Opportunities for the business
Innovations Service and

Product Lean Corporate
Customer
Solutions Development Manufacturing Operations
Management
• GSS
 Accurate prediction  Analyze and  Respond  Improved internal
 Road map
of customer monitor warranty immediately to decision making
• GSS Virtual Assembly preferences and claims and quality variations in  Timely and
• EMO for DI market trends indicators supply and accurate reporting
demand
• EMO for DI – New  Direct access to  Dynamically of financial and
User Interface information across segment customers  Six Sigma operational
multiple data and vehicles performance performance
Technology sources management
 Plan and optimize  Real-time cost
 Insight to optimize service parts control
 Mobility channel replenishment
 Business analytics opportunities, grow
share, and retain
Delivery customers
• Ecosystem Details Details Details Details
Future
Proof Point:


Product development use cases
Innovations Opportunity for the business In-memory-enabled Capability enabled by

innovation/SAP HANA
Solutions use cases
Predict customer preferences  New product evaluation Future or custom-made
• GSS
and market trends accurately
 Road map  Customer sentiment analysis Future or custom-made
• EMO for DI Immediate and direct access to  Warranty claim analysis Future or custom-made
information across multiple data  Warranty cost and
sources to identify improvement
User Interface
areas profitability analysis
 Warranty performance
Technology
analysis
 Product defect and returns
 Mobility
Insight to better use channel  Social network/crowd Future or custom-made
opportunities to grow market sourcing
share and improve customer
Delivery retention
• Ecosystem
Future
Back


Service and customer management use cases

innovation/SAP HANA
Solutions use cases
Analyze and monitor warranty  Product defect and returns Future or custom-made
• GSS
 Road map
claims across all channels
• EMO for DI Dynamically segment  Warranty cost and Future or custom-made
• EMO for DI – New customers and vehicles, explore profitability analysis
User Interface warranty claims, and optimize  Warranty performance Future or custom-made
recall campaigns analysis
Technology  Customer segmentation Available standard solution
 Failure predictive analysis Future or custom-made
 Mobility
Plan and optimize of service  Demand signal repository Planned standard solution
Delivery parts replenishment
• Ecosystem
Future
Back


Lean manufacturing use cases

innovation/SAP HANA
Solutions use cases
• GSS Lean manufacturing  Kanban analytics Future or custom-made
 Road map  Just-in-time analytics Future or custom-made
Performance management for  Inventory analytics Planned standard solution
Six Sigma analysis
• EMO for DI
User Interface
Technology
 Mobility
Delivery
• Ecosystem
Future
Back


Corporate operations use cases

innovation/SAP HANA
Solutions use cases
Run profitability analysis fast  Profitablity analysis Available standard solution
• GSS
 Road map and on single product or
customer level
• EMO for DI
Improve internal accounting and
User Interface
decision making
Technology  Flexible customer and vendor Supported by HANA 1.0 SP3

Gain real-time cost control
 In-memory computing open item lists
 Mobility
Enable timely and accurate  Flexible analysis and reporting Available standard solution
 Business analytics reporting of financial and
operational performance in a  General ledger line item Planned standard solution
Delivery flash general ledger reporting reporting
• Ecosystem
Future
Back

Mobility for automotive

Innovations Corporate
Sales and Service Manufacturing Supply Chain
Operations
Solutions
 Recent innovations  Enable sales agents  Enhance quality  Gain instant insight  Improve supply chain
• GSS to have up-to-date operations into information collaboration
info for customers necessary for
 Road map  Gain instant  Improve
effective decision
• GSS Virtual Assembly  Provide information anywhere access to acknowledgements
making
to assist service work orders, and notifications
• EMO for DI technicians at the inventory, and  Streamline internal
• EMO for DI – New point of repair operational detail approvals  Have holistic view of
User Interface materials,
 Have simple, mobile
UI to support routine components, and
Technology vehicles
business processes
 Mobility
Delivery
• Ecosystem
Future
Details Details Details Details


Sales and service use cases
Innovations Opportunity for the business Mobility-enabled Capability enabled by

innovations/Mobility
Solutions use cases
• GSS
Assist dealer salesperson in  Customer, product option, • Sybase Mobile Sales
engaging with the customer and pricing, configurations, and application for SAP CRM
 Road map be productive with all the comparisons directly to the
• GSS Virtual Assembly information on vehicle of salesperson interacting with • Future or custom-made
• EMO for DI customer’s choice the customer
• EMO for DI – New Assist service technicians at the  Technical information • Sybase Mobile Sales
User Interface repair shop by providing application for SAP CRM
relevant information about  Service contract, warranty,
Technology assets and work orders and recall information • Future or custom-made
 Mobility
Delivery
• Ecosystem
Future
Back

Manufacturing use cases

Solutions use cases
• GSS Streamline and ensure quality  Photo and video • Sybase Unwired Platform
management while allowing free documentation • Future or custom-made
 Road map
• GSS Virtual Assembly movement and inspection
• EMO for DI
• EMO for DI – New Access work order, scheduling,  Access manufacturing • Sybase Unwired Platform
User Interface and inventory information from information anywhere on the • Future or custom-made
shop floor
Technology anywhere on the shop floor
 Mobility
Delivery
• Ecosystem
Future
Back

Corporate operations use cases

Solutions use cases
• GSS Instant insight into information  Mobile analyzer Sybase Unwired Platform
 Road map to support effective and timely
• GSS Virtual Assembly decision making
 Help ensure security of Afaria mobile device
• EMO for DI mobile devices
Security of mobile devices management solution
User Interface Streamlined internal approval  Instant approval of travel Sybase Mobile Workflow
processes and expense, and so on application for SAP Business
Technology
 In-memory computing Suite
 Mobility
Delivery
• Ecosystem
Future
Back

Supply chain use cases

Solutions use cases
• GSS Track and trace material and  Track and trace material • Sybase Unwired Platform
vehicle movements accurately movements accurately • Future or custom-made
 Road map
• GSS Virtual Assembly and instantly.  Mobile yard management • Sybase Unwired Platform
• EMO for DI • Future or custom-made
Conduct real-time vehicle  Mobile vehicle inspections • Sybase Unwired Platform
User Interface
inspections • Future or custom-made
Technology
 Mobility
Delivery
• Ecosystem
Future
Back
Business analytics for automotive

Innovations Supply Chain Procurement Finance
Solutions
 Avoid supply  Prioritize and manage  Discover
• GSS interruptions and supplier risk and appropriate costs to
 Road map get quality suppliers performance run a competitive
• GSS Virtual Assembly supply chain
 Ensure on-time  Ensure that all
• EMO for DI delivery to negotiated savings are  Improve cash flow
• EMO for DI – New customers at most realized and prioritize and increase
User Interface reasonable costs saving opportunities working capital
Technology
 Mobility
Details
Delivery
• Ecosystem
Future

Business analytics for automotive

Procurement use cases
Innovations Opportunity for the business Analytics-enabled Capability enabled by

innovations/Analytics
Solutions use cases
Gain a competitive advantage by  Scenario analysis Supply chain performance
• GSS
identifying emerging supply chain management
 Road map
trends and patterns  What-if analysis
• GSS Virtual Assembly Supply chain performance
• EMO for DI management
• EMO for DI – New Identify key trends and emerging  More than 350 predefined KPIs Supply chain performance
User Interface supply-chain patterns, and management
benchmarking capabilities  Built on supply chain operations
Technology Supply chain performance
reference (SCOR) model management
 Mobility Prebuilt integration with SAP and  Enterprise information Supply chain performance
non-SAP data systems management management
Leverage Microsoft Excel UI for  Performance management Sales and operations planning
Delivery planning, hierarchical roll-up, and dashboards
• Customer co-innovation single planning tool across the
• Ecosystem company and SAP
BusinessObjects visualization
Future dashboards
Analyze sales, demand, and  Consensus demand Sales and operations planning
marketing data, and create management, what-if analysis
adjustments to develop a
consensus volume and revenue
plan Back
Delivery innovations
Innovations
Solutions
• GSS
 Road map
• EMO for DI
User Interface
Technology
 Mobility
Delivery
• Ecosystem
Future

Customer co-innovation
Innovations The RAN consortium consists of the German government, three

German automotive manufacturers, four automotive suppliers,
Solutions three logistics suppliers, and four technology partners including
 Recent innovations SAP who are teaming up to create an RFID-based automotive
• GSS network to meet the increasing complexities of intra- and interplant
 Road map http://www.autoran.de/en processes and to control the economic and cross-company
• GSS Virtual Assembly controlling of processes for orders. Intelligent material flow,
• EMO for DI efficient production, and economical inventory-optimized logistics
will result, while continuing to allow consortium members to focus
User Interface
on core competencies.
Technology SAP Community Network

This online hub supports customers, partners, consultants, experts, and SAP employees.
Companies can find answers to questions and benefit from the expertise of other community
 Mobility
members as they develop their own products.
the idea place
Just launched – an open online forum for customers and ecosystem partners to connect and provide
Delivery
feedback on new developments from SAP.
• Ecosystem SAP BusinessObjects innovation center
This interactive online forum lets customers sample SAP technology that is in development.
Future Companies can download prototype software and offer their feedback.
SAP Premier Customer Network
Successful companies that SAP has selected to collaborate and share ideas. Network members
participate in programs designed to cultivate, diversify, and transform ideas into tangible business
improvements.

Ecosystem
Innovations Consulting and integration

Solutions
• GSS
 Road map IBM is a global consulting, itelligence is one of the Tata Consultancy
• GSS Virtual Assembly services, and technology leading international full provides international
• EMO for DI
company. service providers for world-class IT services,
solutions in the SAP solution implementation,
User Interface environment. and outsourcing.
Technology
Value-add resellers/development
 Mobility
Delivery
• Customer co-innovation Global HR and Global business Supply chain Integrated compliance
• Ecosystem financial integration management management solutions
outsourcing services
Future
For more details, see the SAP Communities site on SAP.com: SAP Communities
Key trends driving future innovations

Product development
 Product virtualization to provide a single source of the truth
Innovations  Comprehensive integration with authoring tools
 “Mechatronics” to manage comprehensively mechanical, electrical, systems, and embedded
Solutions software
 Recent innovations  Sustainability, regulations, and legal compliance
• GSS
 Road map
Procurement and supply chain
 Growing complexity of demand-driven global supply networks and supplier relations
 Increasing importance of mobility and real-time information provisioning
• EMO for DI  Multi-tier planning and logistics management
• EMO for DI – New  More regulations and corporate governance
User Interface  Focus on sustainability
Technology
Manufacturing
 Deeper PLM and manufacturing execution integration
 Mobility  Deeper integration with packaged performance management applications
 Business analytics  Quality management enhancements
Delivery Dealer business management – retail

• Customer co-innovation  Enhanced importer and retailer process integration
• Ecosystem  High-performance sales and service analytics
 Cash flow and profitability demands
 Mobile application enablement
Future
Marketing
 Customer insight driven marketing
 Digital and mobile marketing
 Social media

References and results
Proof Points
 Colmobil
 BMW
 Borg Warner
Turbo Systems
 Fisker
 Federal Mogul

Proof Points Colmobil is Israel’s leading Enhanced control across all operations
importer and distributor of by integrating processes
 Colmobil
passenger cars, commercial Achieved customer rather than product
 BMW vehicles, trucks, and buses. focus
The company needed to Reduced software maintenance costs by
 Borg Warner
Turbo Systems change its focus from products keeping customization to a minimum
to customers and replace
 Fisker legacy software with flexible Proactively addressed both business
 Federal Mogul
solutions that provided long- and technology needs with lower TCO
term flexibility
Gained improved support for
collaboration among OEMs and sales
and service personnel
Decreased order cycle times and
increased profitability

Proof Points BMW Group is known 16% reduction of duplicate material

around the world for numbers
 Colmobil
building automobiles of Improved coordination of planning
 BMW unmatched quality. The efforts across locations
company implemented a 50% reduction of vendor accounts
 Borg Warner
Turbo Systems service-oriented architecture
with SAP software to Centralized view and control of
 Fisker reengineer its material planning data
 Federal Mogul
requirements planning
applications. Reduced costs for material planning
operations
Improved inventory control with
common phase-in and phase-out
processes
Improved productivity of BMW planners

Proof Points Borg Warner Turbo Systems Consolidated product data from three
develops and manufactures systems into one
 Colmobil
turbocharging systems for 360-degree view of all product-related
 BMW commercial vehicles and processes with end-to-end
industrial, locomotive, and standardization
 Borg Warner
Turbo Systems marine engines. The Effective collaboration between all
company needed to ensure global sites
 Fisker reliable product lifecycle
 Federal Mogul
management processes Faster approval process
across the business and
centralize all product data Greater visibility into data with higher
within a single system data quality and consistency
Improved change management
Strong basis for future growth

Proof Points Fisker Automotive is an Initial SAP implementation at Fisker was

American premium accomplished in the astoundingly short
 Colmobil
electric vehicle time of just 16 weeks
 BMW manufacturer whose
mission is to redefine the SAP ERP application
 Borg Warner
Turbo Systems luxury automobile with an
Reports and dashboards
unwavering dedication to
 Fisker sustainability. SAP solutions for
 Federal Mogul sustainability
SAP Warranty Management
SAP NetWeaver Portal
Interfaces
http://www.sapphirenow.com/sessiondetails.aspx?sId=104
Proof Points SAP HANA in action

 Colmobil
The producer of engine and vehicle products geared towards increasing
 BMW fuel efficiency and lowering engine emissions.
 Borg Warner Federal Mogul has grown via mergers and acquisitions over the past
Turbo Systems years. As a log time customer of SAP they aggressively leverage SAP
solutions to achieve their strategy of consolidation and integration of
 Fisker
acquisitions.
 Federal Mogul
Federal Mogul is using SAP HANA to revolutionize information delivery
and decision making. The speed and performance it brings to the
business to improve performance, forecasting, and inventory
management provides the ability to reduce inventories and improve
service delivery.

SAP solutions help automotive companies

run better
Strategy
Business value
End-to-end processes for multi-industry value chains
combining horizontal and industry-specific solutions
 Collaborate better: Reduce time-to-market and innovate
faster
 Adapt better: Manage vehicle sales and grow market
share
 Decide better: Build brand and value by leveraging
information for the right decisions
 Operate better: Reduce costs and inventory and grow
profits across the extended value chain
IT value
Orchestration across on premise, on demand, and on device
providing flexibility, security, and scalability on a single IT
platform.
• Easily consumable through implementable steps
• Quick ROI through rapid deployment solutions
• Secure reliable operations tuned for your business
SAP innovations
enable business
transformation In-Memory Mobility Business
Computing Analytics
Take Away
SAP understands your business and helps make automotive

Take Away
1 companies successful by reducing time to market for
innovative products, cutting operational costs and enhancing
the ownership experience.
SAP continues to deliver business innovation and value

2
for and is the preferred choice of automotive companies.
Our automotive customers are reaping the benefits of our

3
innovation and running better with SAP.

© 2011 SAP AG. All rights reserved.
SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP
BusinessObjects Explorer, StreamWork, and other SAP products and
services mentioned herein as well as their respective logos are trademarks
or registered trademarks of SAP AG in Germany and other countries.
Business Objects and the Business Objects logo, BusinessObjects, Crystal
Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business
Objects products and services mentioned herein as well as their respective
logos are trademarks or registered trademarks of Business Objects
Software Ltd. Business Objects is an SAP company.
Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and
other Sybase products and services mentioned herein as well as their
respective logos are trademarks or registered trademarks of Sybase, Inc.
Sybase is an SAP company.
All other product and service names mentioned are the trademarks of
their respective companies. Data contained in this document serves
informational purposes only. National product specifications may vary.
These materials are subject to change without notice. These materials
are provided by SAP AG and its affiliated companies (“SAP Group”)
for informational purposes only, without representation or warranty of
any kind, and SAP Group shall not be liable for errors or omissions with
respect to the materials. The only warranties for SAP Group 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.

SAP For Automotive: Industry Briefing Book

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SAP for

Comments and questions: larry.stolle@sap.com

Run Better Drivers Transformation Solutions

Innovations Proof Points Strategy Take Away

Comments and questions: larry.stolle@sap.com

What does “Run Better” mean for automotive?

Market share Retail channel

Quality, recall, and

© 2011 SAP AG. All rights reserved. 4

Large disparity between average and best

KPIs 9.7% best

Operating Margin % Time-To-Market

Source: SAP Value Engineering data 2011

© 2011 SAP AG. All rights reserved. 5

The best are leading the way

© 2011 SAP AG. All rights reserved. 6

Run Better Kongsberg Automotive, 50% Reduction in product development

© 2011 SAP AG. All rights reserved. 7

Run Better Fahrzeug-Werke LUEG AG, 360° 360-degree view of

© 2011 SAP AG. All rights reserved. 8

90% Improved data accuracy from

© 2011 SAP AG. All rights reserved. 9

Innovation drivers in automotive

© 2011 SAP AG. All rights reserved. 10

Intense automotive competition

Drivers Fast time to market Brand value and Competition for,

© 2011 SAP AG. All rights reserved. 11

Drivers Fluctuation in oil Raw material Suppler and OEM

© 2011 SAP AG. All rights reserved. 12

Technology and innovation

Drivers Competition Increasing software Sustainability and

© 2011 SAP AG. All rights reserved. 13

Government and environmental regulation

Drivers Safety and quality Fuel economy Financial reporting

© 2011 SAP AG. All rights reserved. 14

Transformation • R&D lacks real time

© 2011 SAP AG. All rights reserved. 15

Transformation • R&D accelerates time to

© 2011 SAP AG. All rights reserved. 16

SAP helps increase market opportunity, achieve profit

SAP unique capability SAP unique capability SAP unique capability

Collaboratively engage all Provide aligned Deliver lean

© 2011 SAP AG. All rights reserved. 17

SAP solutions for automotive

Work in progress - coming soon!

© 2011 SAP AG. All rights reserved. 18

Customer centric and innovation driven

Solutions Solution Innovations

© 2011 SAP AG. All rights reserved. 19

SAP solution innovations for automotive

© 2011 SAP AG. All rights reserved. 20

Selected solution innovations

Innovations Sales, service, and marketing Manufacturing and logistics

Technology Supply chain

© 2011 SAP AG. All rights reserved. 21

Selected solution innovations

© 2011 SAP AG. All rights reserved. 22

Selected automotive solution innovations

Innovations Sales, service, and marketing Manufacturing and logistics

Technology Supply chain

© 2011 SAP AG. All rights reserved. 23

Selected solution innovations

Innovations Visual assembly