What's The Biggest Barrier to Business Innovation? The Answer is Simple

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What’s stopping us from business innovation isn’t the lack of opportunity or lack of technology options -- it's business and technology complexity. The answer is to radically simplify existing processes, leaving more time and resources for new ways of working. This presentation looks at companies around the world and how they are getting closer to their customers, inspiring and empowering their employees, making better use of resources in real time, and joining the networked economy.

Text of What's The Biggest Barrier to Business Innovation? The Answer is Simple

  • 1. Whats The Biggest Barrier toBusiness Innovation?Timo Elliott, SAP Senior Director, Global Innovation Evangelist, October [email protected]

2. There are lots of new business opportunities71% 3X 60%business leadersbelieve that customerexperience is the nextbattlegroundincrease in operatingmargin in retailleveraging Big Data asthe new resourcehigher operatingmargin than the oneswith poor employeeengagementhigher sales & margins when effectively running anetworked enterprise50% 2014 SAP AG or an SAP affiliate company. All rights reserved. 2 3. There are lots of new technology possibilitiesCloudSimplicity, time tovalue, speed tooutpace disruptionMobileThe new de factostandard inbusinessinteractionSocialConnected businessand social networksAnalyticsReal-time analyticsfor behavioral andpredictive insightsMore than 60% of CEOs expect 15%50% oftheir earnings growth in the next 5 years tocome from technology-enabled businessinnovations. McKinsey study, 2013 2014 SAP AG or an SAP affiliate company. All rights reserved.3 4. So whats stopping us? Complexity.BCG 2010 IBM CEO Survey 2010 Forrester, 2013Complex Business Processes61%of standout CEOs intendto simplify operationsComplex Technology73%of executives saidcomplexity of data is thelargest IT challenge 10.2% or $237B* of profitsare lost by top 200 globalcompanies due to hiddencosts of complexityComplex Decision Making25 100%increase in profit marginsfrom effectivelymanaging complexity*Global Simplicity Index, 2013 2014 SAP AG or an SAP affiliate company. All rights reserved. 4 5. Radical simplification is needed to unlock potentialInnovationCustomer ExperienceEmployee EngagementResource OptimizationNetworked BusinessDrivebusinessinnovationKeep the lights onComplexityDecision MakingBusiness ProcessTechnology40% of executives worry that their organizationswill not keep pace with technology change andlose their competitive edge. McKinsey study, 201328%Drive business innovation72%Keep the lights onForrester IT Survey, 2013 2014 SAP AG or an SAP affiliate company. All rights reserved.5 6. Making everything SimpleSOCIALSIMPLEANALYTICSMOBILEAPPLICATIONSCLOUDNETWORKS 2014 SAP AG or an SAP affiliate company. All rights reserved. 6 7. Simplify your Business ProcessesFasterInsight to actionContextual. Real-time. Closed-loop.Process massive amountsof data, and deliverinformation atunprecedented speedsSmarterRethink and envisionentirely new ways andapplications to run yourbusinessSimplerDramatically simplifycomplex and expensiveIT architectures 2014 SAP AG or an SAP affiliate company. All rights reserved. 7 8. Molson CoorsWhy we moved to BW on SAP HANA: the need to simplifyJust do it! It will be completely amazing. We get emails everyday saying 'this is so cool 2014 SAP AG. All rights reserved. 8 9. Unileverif we knew what we know now, we would have starteddeploying HANA much earlier, because its so important forbusiness!We think its even more disruptive than we initially thought weve only just started 2014 SAP AG or an SAP affiliate company. All rights reserved. 10. Finance, Simplified 2014 SAP AG or an SAP affiliate company. All rights reserved. 10 11. Finance, SimplifiedToday: Dynamic, on-the-fly reporting enablesanalysis & simulation of organizationalchanges. Impact analysis is immediatelyavailable.Before: Static, predefinedaggregatescannot handle structural changeswithin the organization. 2014 SAP AG or an SAP affiliate company. All rights reserved. 11 12. Finance, ReinventedSAP Working CapitalAnalyticsSAP Cash Management 2014 SAP AG or an SAP affiliate company. All rights reserved. 12 13. 2014 SAP AG or an SAP affiliate company. All rights reserved. 13 14. Textile Rubber & Chemical Company500 Employees, 4 internal IT staffBusiness Suite on HANAWhy SAP Suite onHANA? Because itsimplified our SAPLandscapeWith HANA Live, in 5minutes we could seemore informationthan we could in thelast 7 months 2014 SAP AG or an SAP affiliate company. All rights reserved. 15. Simplify your Decision MakingIntuitiveResponsive, mobile-readyinterfaces that adapt to alldevicesPeople-CentricWorkflows andcustomization thatcorrespond to the needs ofpeople, not systems 2014 SAP AG or an SAP affiliate company. All rights reserved. 15 16. Simple User Experience 2014 SAP AG or an SAP affiliate company. All rights reserved. 16 17. Simple User Experience 2014 SAP AG or an SAP affiliate company. All rights reserved. 17 18. Smart Business CockpitsPlanned Cockpits Chief Financial Officer Financial Close Manager Cash Manager Receivables Manager Payables Manager 2014 SAP AG or an SAP affiliate company. All rights reserved. 18 2014 SAP AG or an SAP affiliate company. All rights reserved. 18 19. Simplify your TechnologyPublic cloudHuman resourcesCustomersSuppliersManaged cloudSAP BusinessSuiteSAP BWMarketplaceApps built on SAPHANA CloudPartner ISV apps 2014 SAP AG or an SAP affiliate company. All rights reserved. 19 20. An Open Platform For Innovation1,200Startups with SAPHANA2,000Software and techpartners3,000Service partners4,000Solution resellers 2014 SAP AG or an SAP affiliate company. All rights reserved. 20 21. New Applications, Made SimpleSeamless Internet of Things, Cloud, Analytics, SocialWeissbeerger Beer Analytics 2014 SAP AG or an SAP affiliate company. All rights reserved. 2014 SAP AG or an SAP affiliate company. All rights reserved. 21 22. Simplifying BusinessEngage & empowerWorkforce of the FutureHarness the intelligence ofNetworked EconomyBusinessOutcomesHyper-personalizeCustomer ExperiencePlan & optimizeResources in Real-time 2014 SAP AG or an SAP affiliate company. All rights reserved. 22 23. CUSTOMERENGAGEMENT 2014 SAP AG or an SAP affiliate company. All rights reserved. 23 24. 80% of CEOs think they deliver a superior customerexperience-- but only 8% of customers agree.Source: The New Yorker 2014 SAP AG or an SAP affiliate company. All rights reserved. 24 25. Reinvent Luxury Service 2014 SAP AG or an SAP affiliate company. All rights reserved. 25 26. BurberryThe benefits of the SAPHANA platform aresignificant with a hugelysimplified footprint.Were putting the wholebusiness on the SAPHANA Enterprise cloud 2014 SAP AG or an SAP affiliate company. All rights reserved. 26 27. Point of Sale Explorer 2014 SAP AG or an SAP affiliate company. All rights reserved. 27 28. MedtronicCombine structured andunstructured data forbusiness value 2014 SAP AG. All rights reserved. 29 29. New Products & Services 2014 SAP AG or an SAP affiliate company. All rights reserved. 30 30. 2014 SAP AG or an SAP affiliate company. All rights reserved. 31 31. 2014 SAP AG or an SAP affiliate company. All rights reserved. 32 32. EMPLOYEEEMPOWERMENT 2014 SAP AG or an SAP affiliate company. All rights reserved. 35 33. Worldwide, Only 13% of Employees are Engaged at Work33%30%27%26%26%24%24%23%23%22%22%19%18%17%16%16%14%12%9%Costa RicaUSABrazilGuatemalaColombiaEl SalvadorChileDominican RepublicBoliviaUruguayNicaraguaHondurasVenezuelaPeruEcuadorArgentinaParaguayMexicoFranceSource: Gallup State of the Global Workplace Report53%52%62%55%61%56%58%59%58%54%53%55%60%62%56%59%60%65%70%14%18%12%19%13%20%18%18%20%24%25%26%22%21%28%27%28%26%14%EngagedNot EngagedDisengaged 2014 SAP AG or an SAP affiliate company. All rights reserved. 36 34. Corporate Culture TransformationSAP Jam has becomethe systemic socialglue that ties theorganization together Dan Pontefract, Telus 2014 SAP AG or an SAP affiliate company. All rights reserved. 37 35. 2014 SAP AG or an SAP affiliate company. All rights reserved. 38 36. Germanys 12th Man In World Cup Big Data 2014 SAP AG or an SAP affiliate company. All rights reserved. 39 37. 2014 SAP AG or an SAP affiliate company. All rights reserved. 40 38. RESOURCEOPTIMIZATION 2014 SAP AG or an SAP affiliate company. All rights reserved. 42 39. Revealing Processes in Order to Optimize Them 2014 SAP AG. All rights reserved. 45 40. 2014 SAP AG. All rights reserved. 46 41. 2014 SAP AG. All rights reserved. 47 42. Smart Port LogisticsClosed-loop analytics48 2014 SAP AG or an SAP affiliate company. All rights reserved. 48 43. 2014 SAP AG or an SAP affiliate company. All rights reserved. 50 44. THE NETWORKECONOMY 2014 SAP AG or an SAP affiliate company. All rights reserved. 51 45. Networked economy: The next economic revolution$0.36T1850Industrialeconomy$90.0T2020Networkedeconomy$27.50T1990Interneteconomy$12.10T1970ITeconomyAll figures are in Trillions; 1990 international dollars; Source: Department of Economics, UC Berkeley, BAIN 8MacroTrends Brief.Internal | 2014 SAP SE or an SAP affiliate company. All rights reserved.Grossworldproduct 2014 SAP AG or an SAP affiliate company. All rights reserved. 52 46. The Ariba NetworkProcurementSalesFinanceLogisticsSupply ChainSustainabilityComplianceBuyers SuppliersPartnersMore than 1M suppliers inmore than 190 countriesaround the worldTransact with suppliers theNetwork handles over $460billion per year in commerceReduce supply costs customers save a combinedtotal of $82M daily 2014 SAP AG or an SAP affiliate company. All rights reserved. 53 47. Simplifying BusinessEngage & empowerWorkforce of the FutureHarness the intelligence ofNetworked EconomyBusinessOutcomesHyper-personalizeCustomer ExperiencePlan & optimizeResources in Real-time 2014 SAP AG or an SAP affiliate company. All rights reserved. 54 48. Our vision for enterprise technology and businessRun simple. 2014 SAP AG or an SAP affiliate company. All rights reserved. 55 49. SAP strategySAP Cloud powered by SAP HANARun simple. = Cloud + SAP HANA 50. I said SIMPLE,I didnt sayEASY! 2014 SAP AG or an SAP affiliate company. All rights reserved. 57 51. Building complete solutions that best meet your needsUXIndustry expertise Value engineering Design thinkingServices and supportFor 25 industries For 11 lines of business For millions of SMEs For consumers 2014 SAP AG or an SAP affiliate company. All rights reserved.58 52. THE WAY FORWARD IS SIMPLESO YOU CANDO ANYTHINGSIMPLIFYEVERYTHING 2014 SAP AG or an SAP affiliate company. All rights reserved. 59 53. Run simple.Thank [email protected] @timoelliott 2014 SAP AG or an SAP affiliate company. All rights reserved. 60