K4U Knowledge for Success

Internet of Things – Webinar Series

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2 Customer

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permission of SAP. This presentation is not subject to your license agreement or any other service or subscription

agreement with SAP. SAP has 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's strategy and possible future developments, products and or platforms directions and functionality are all

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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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fromThings

to Outcomes

fromThings

to Outcomes

Webinar 4 User Groups –

IoT Overview

March 8th, 2016

Nils Herzberg

SVP IoT GTM

fromThings

to Outcomes

Unprecedented Change Fueled by Hyper-Connectivity

fromThings

to Outcomes

2.5 billion Connected people on

social networks by 2020

75 billion Connected devices by 2020

$65 trillion Global business trade by 2020

fromThings

to Outcomes

Consumer Industries

Traditional clothing retailers transforming into healthcare companies through connected

apparel and digital fitness tools

Manufacturing

Large equipment manufacturers are moving towards providing not just manufacturing

equipment, but rather outcome-based services

fromThings

to Outcomes

fromThings

to Outcomes

Outcomes

Things

Valu

e c

hain

Create

Thing to Insight

Insight to Action

Action to Outcomes

Evolve

Know

Create new business value and ecosystem advantages

Evolve business processes to turn insight into outcomes

Know where opportunity and risk exists from connected data

Lower cost

New revenue

Optimized productivity

Increased uptime The Outcomes Customers Want

Improved turnarounds

Greater capacity Better efficiency

Faster deliveries

Less waste

New products & services

Usage-based pricing

New business models

fromThings

to Outcomes

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to Outcomes

Discrete

Manufacturing Transportation & Logistics

Energy & Natural

Resources

SAP HANA Platform

IT

Outc

om

es

OT

Thin

gs

Tech

Partners

Horizontal

End-to-End Connected Solutions across Industries

Connected

Manufacturing

Connected

Logistics Connected Energy

Predictive Maintenance and Service / Asset Intelligence Network

Consumer

Industries

Connected Consumer Connected

Vehicles

fromThings

to Outcomes

SAP HANA Cloud Platform

SAP Internet of Things Platform

to Outcomes

SAP HANA Platform

VORA

Other DB’s Hadoop

On-Premise

Application Framework

IoT Integration

Services

Cloud Non SAP

Cloud

Machine Integration

IoT Integration

Services Dynamic Tiering

HANA Cloud

Integration

Smart Data

Integration

Process

Integration

IoT App

Services IoT

Analytics

SAP IoT Edge

SAP / Partner

Connected

Devices Machine Integration

SAP & non- SAP Core Apps

SAP & Partner IoT Apps

HANA Cloud

Connector

Applic

ation

Exte

nsio

n

Process & Data

Integration

fromThings

to Outcomes

SAP Business Suite or S/4HANA

SAP analytics

Data integration/HANA/HCP

Existing sensor data New sensor data

SAP IoT point solution

SAP analytics

Data integration/HANA/HCP

Existing sensor data New sensor data

Type 1 - New data for existing

apps and analytics Type 2 - IoT point applications

The First Question – What are you trying to do?

fromThings

to Outcomes

HANA Cloud Platform

HANA

Applications Applications

Platform

Cloud OnPremise

APPS

The Next Question – Cloud or OnPremise

fromThings

to Outcomes

The Next Question – Cloud or OnPremise

Existing assets and sensors New assets and sensors

HANA Cloud Platform (incl. Device Management, Connectivity

and Data Ingestion options)

HANA, VORA (incl. Device Management, Connectivity and other

Data Ingestion Options)

Analytics & Prediction Analytics & Prediction

Application Application Application Application Application Application Application

Existing assets and sensors New assets and sensors

Cloud On Premise

PaaS

SaaS

Platfo

rm

Softw

are

‘Extend existing SAP product investments for IoT’ ‘Use SAP’s pre-integrated stack for your IoT needs’

fromThings

to Outcomes

SAP HANA Cloud Platform

fromThings

to Outcomes

Predictive Maintenance and Service

Predictive Maintenance

and Service

Asset Intelligence

Network

fromThings

to Outcomes

While the world's GDP is around

$46.6 trillion, the value of all assets

is assumed to be much higher.

Maintenance spend alone comes

up to $447 billion.

Asset Maintenance Is a Huge Cost Factor

Source: Global Framework on Maintenance and Asset Management

10 – 40% Reduction of maintenance costs of factory

equipment

up to 50% Reduction of equipment downtime

3 – 5% Reduction of equipment capital investment

by extending the useful life of machinery

Improved equipment maintenance is a major source of value:

$630B USD Potential economic impact

per year in 2025

5 – 10% Reduction of maintenance costs

3 – 5% Increase in output by avoiding unplanned

outages

5 – 10% Reduction of equipment capital investment

by extending the useful life of machinery

Manufacturing

Worksites

Oil & Gas, Mining,

Construction

$360B USD Potential economic impact

per year in 2025

fromThings

to Outcomes

Improving Asset Reliability Promises Large Savings Opportunities

Maintenance Engineer /

Reliability Manager / Operations Engineer /

Quality Manager

Service Agent /

Service Technician /

Engineer /

Warranty Claims Manager

Remote Service Management

New business models around

the device

SAP Predictive

Maintenance and Service

Asset

Manufacturer Asset Operator

CRM, Customer Service Enterprise Asset

Management

Predictive Maintenance for

critical assets

Operations improvements

Quality improvements

Physical Asset Level

fromThings

to Outcomes

2 Major Usage Types for Predictive Maintenance

fromThings

to Outcomes

“Our predictive maintenance

solution has enabled us to improve

service levels for customers.”

fromThings

to Outcomes

Service Agent /

Service Technician /

Engineer /

Warranty Claims Manager

Remote Service Management

New business models around the device

Asset Manufacturer CRM,

Customer Service

fromThings

to Outcomes

fromThings

to Outcomes

8-10% reduction in

maintenance costs

fromThings

to Outcomes

Maintenance Engineer /

Reliability Manager /

Operations Engineer /

Quality Manager

Predictive Maintenance for critical assets

Operations improvements

Quality improvements

Asset Operator Enterprise Asset

Management

fromThings

to Outcomes

fromThings

to Outcomes

Annual spend for asset

maintenance reduced by

approximately 1-2%

fromThings

to Outcomes

Manufacturing Integration &

Intelligence

Manufacturing

Execution

Predictive Maintenance

and Service

Plant

Connectivity

Asset Intelligence

Network

Connected Manufacturing

fromThings

to Outcomes

Intelligent Factory as Data Source for many IoT scenarios

fromThings

to Outcomes

IoT scenarios impact all layers of business

fromThings

to Outcomes

Reduced production lead time for

customized motorbikes from

21-day cycle to 6 hours

fromThings

to Outcomes

fromThings

to Outcomes

Connected Manufacturing is a major topic in the Process Industry

fromThings

to Outcomes

Connected Logistics

Track &

Trace

Network Logistics

Hub

fromThings

to Outcomes

The Usage Scenario for Networked Hub Logistics

fromThings

to Outcomes

Network

Logistics Hub

SAP Vehicle

Insights

SAP Vehicle

Network

Connected Vehicle

fromThings

to Outcomes

Examples for Vehicle Analytics

Make food production more

efficient with Digital Farming

fromThings

to Outcomes

fromThings

to Outcomes

Asset Information Network

Global

Inventory Asset Lifecycle

Work

Scheduling

Benchmarking

Pay

on

Performance

Lease

Management

Equipment

History

Applications

Pump OEM

Valve OEM

Service

Provider

Mining

Company

O&G

Company

Utility

Company

Content Integration Network

OEMs & Service Providers Operators

fromThings

to Outcomes

SAP Asset Intelligence Network

Collaboration between OEM, service provider, and operator

Real-time visibility into

plant and logistics operations

Monitor, analyze, and predict asset

performance to reduce unplanned downtime and increase EH&S

One stop shop for manufacturers,

service providers & operators to

collaborate on asset usage

Effectively allocated service providers and

field maintenance personnel work and

task allocations

Connected

Manufacturing

Real-time visibility of

production

operations. Intelligent

production output,

shutdown/Turnarounds

Connected

Logistics Scheduling

Routing

Mobile Work Mgt

Maintenance

Transactions

Available at

Remote Sites People, Supply Replenishment

Project Updates

Reporting Prescriptive

Maintenance Condition Monitoring

Alerting

Vibration Analysis

Predictions

Asset Intelligence

Network

Up to date service documentation

Spare parts / Replacement

Performance Benchmarking

fromThings

to Outcomes

SAP’s portfolio of IoT Applications designed to drive outcomes

fromThings

to Outcomes

fromThings

to Outcomes

SAP IoT stands for closing the loop from “Things to Outcomes“

SAP IoT Platform: IoT Edge Client, SAP HANA Platform (On-Premise), SAP HANA Cloud

Platform (Cloud)

Key solutions include Predictive Maintenance and Service, Connected Manufacturing,

Connected Logistics, Connected Vehicles, Connected Consumer, Connected Retail

IoT is an ecosystem play, SAP will partner with various players to deliver an end-to-end IoT offer

In Conclusion…

fromThings

to Outcomes

fromThings

to Outcomes

Q&A

fromThings

to Outcomes

fromThings

to Outcomes

Thank You

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 39 Customer

SAP Internet of Things – Webinar Series

SAP IoT Overview Nils Herzberg Mar 8

SAP Logistics Hub Uwe Kürsten Mar 22

Create new business models based on vehicle

data analysis with SAP Vehicle Insight Mirjam Metzler Mar 29

SAP Asset Intelligent Network Dirk Kempf Apr 5

SAP Predictive Maintenance Simon Lee Mar 21

SAP HANA Cloud Platform & HANA Cloud

Integration Udo Paltzer / Alex Braun Mar 15

SAP IoT Application Services Harry Lube Apr 26

SAP IoT for Industries (Self-optimized

production) Alex Mathew Apr 7

40 © 2016 SAP SE or an SAP affiliate company. All rights reserved.

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 41 Customer

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

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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.