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Digital Transformation:
Run and Win
Timo Elliott
Global Innovation Evangelist, SAP
@timoelliott
2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
General Motors vs. Tesla
2011 2017
$58Bn$55Bn
$2.5Bn
$51Bn10,000,000 cars in 2016
76,000 cars in 2016
(average market cap)
4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Self-Improving Product Example: SAP CoPilot
SAP CoPilot is an Enterprise
Digital Assistant — what Siri,
Alexa, and Cortana are to
consumers.
5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Leaders in digital transformation are expected to
realize 23% higher revenue growth rates over
their peers for the next two years.
84% of companies globally say digital
transformation is important or critically
important to their survival in next 5 years.
Source: SAP 2017 Digital Transformation
Executive Study with Oxford Economics
“Digital is moving to the core of business strategy”Source: Gartner
Source: SAP 2017 Digital Transformation Executive
Study with Oxford Economics
6PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
connecting People, Things and BusinessesIntelligently
Integration Mobile
Collaboration
Big Data
Business Process
Innovation
Connected Data
Design Thinking
Microservices
APIs
Real-time
Analytics
Natural
Language
IoT NetworksMachine
Learning
Experiences
7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Shoes Personalization
CommunityCoaching
9PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
BENEFITS
Single platform to
manage data and
analytics capabilities
35% Increase in
campaign Opt-Ins
65% response rates in
email campaigns
85%
80%
31%
employee engagement
increase in
profitability
market share
increase in
increase in
What makes digital leaders different?
PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
11PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Just 3% of companies say they are succeeding withdigital transformation
Source: SAP Digital Transformation Executive Study: 4 Ways that Leaders Set Themselves
Apart, SAP Center for Business Insight and Oxford Economics, 2017
The big problem…
12PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 12
Digital Transformation with SAP
The digital innovation system
that enables you to innovate at scale to confidently
redefine your business.
15PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Internet of Things
Big Data
Data Network
Blockchain
Analytics
Machine Learning
SAP Leonardo Technologies
SAP Leonardo Digital Innovation System
SAP Cloud Platform
Multi-Cloud Infrastructure
Microservices | Open APIs | Flexible Runtimes | Integration
SAP Data Center
16PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Steps to digital transformationSAP Leonardo Innovation Services
PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 16
Global Leonardo
centers for Design
Thinking and
innovation
Bring innovative
ideas to life,
Iterate and refine
Create, test &
refine business
case for ROI and
strategic value
Create a
Technology
Roadmap, identify
dependencies &
remediate risks
Solution Ideation
& Vision
Rapid
Prototyping
Business Case
Development
Technology
Blueprint
17PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Innovation with purpose using Design Thinking
Rethink what you sell:
from selling a product to
selling a transformation
Rethink your customers:
who is struggling with these
problems?
Focus on the problems:
what’s stopping customers
from the transformation?
18PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Steps to digital transformationSAP Leonardo Innovation Services
PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 18
Global Leonardo
centers for Design
Thinking and
innovation
Bring innovative
ideas to life,
Iterate and refine
Create, test &
refine business
case for ROI and
strategic value
Create a
Technology
Roadmap, identify
dependencies &
remediate risks
Solution Ideation
& Vision
Rapid
Prototyping
Business Case
Development
Technology
Blueprint
19PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
New Business Model Generation
Business Model Canvas: nine business model building blocks, Osterwalder, Pigneur & al. 2010
Digital leaders are far more
likely to have rethought their
relationships with customers,
partners, and other industry
players
And they are much more likely
to have invested in employee
training and new hires with new
roles
20PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Steps to digital transformationSAP Leonardo Innovation Services
PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 20
Global Leonardo
centers for Design
Thinking and
innovation
Bring innovative
ideas to life,
Iterate and refine
Create, test &
refine business
case for ROI and
strategic value
Create a
Technology
Roadmap, identify
dependencies &
remediate risks
Solution Ideation
& Vision
Rapid
Prototyping
Business Case
Development
Technology
Blueprint
21PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP HANA
Express Edition
Fast Prototypes
22PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Start prototyping with simple sketches!
http://build.me
23PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Turn prototypes into reality quickly, easily, and iteratively
24PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Steps to digital transformationSAP Leonardo Innovation Services
PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 24
Global Leonardo
centers for Design
Thinking and
innovation
Bring innovative
ideas to life,
Iterate and refine
Create, test &
refine business
case for ROI and
strategic value
Create a
Technology
Roadmap, identify
dependencies &
remediate risks
Solution Ideation
& Vision
Rapid
Prototyping
Business Case
Development
Technology
Blueprint
25PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Cloud Platform
SAP Leonardo Industry Innovation Accelerators
Each SAP Leonardo Industry Accelerator is a fixed price solution with a pre-defined bill of materials that includes annual cloud
subscription licenses and services with the SAP Leonardo Innovation Service, express edition.
SAP Leonardo
for Retail
SAP Leonardo for
Discrete Manufacturing (IM&C and High Tech)
SAP Leonardo for
Sports & Entertainment
SAP Leonardo for
Consumer Products
Note: Additional Implementation services can be added from SAP Consulting or Partners
(*) Planned or Future Innovations
+
SAP Leonardo includes:
+ ++Application
Licenses Subscription Price
Analytics
Licenses Subscription Price
IOT ServicesSubscription Price
Leonardo Innovation Services
Big Data Hub (*)…
Machine
LearningSubscription Price +
Horizontal or
Custom
• Assets
• Logistics
• Store (*)
• Inventory (*)
• Shelf (*)
• Cold Chain (*)
• Venue
• Team
• Fans (*)
• Assets
• Logistics
• Manufacturing (*)
• Cold Chain (*)
• Consumer (*)
• Assets
• Logistics
• Service
• Spare Parts
26PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
27PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
28PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Cargo Sous Terrain & SAP Leonardo
Switzerland expects a 37% increase in
freight transport over the next 20 years.
Cargo Sous Terrain believes that its
24x7 delivery system will reduce road
congestion by as much as 40%
29PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Mohawk Video
30PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
31PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
32PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Value of SAP Leonardo to Mohawk Industries
Before
Fiori due to be
implemented in 2018
after global
simplification plan
Meanwhile, business
users had to access
three separate AP
systems with separate
logins, interfaces, etc.
After
Design Thinking, proof of
concept in three weeks,
deployed first implementation
in 3 months
Business users now have
single page interface, one
view of invoice exceptions
User excitement and
business/IT collaboration
Accelerating adoption, building user excitement
33PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Three weeks to innovation
“If you take anything away from today, it’s
that innovation can happen today, even
though you have other things going on…”
“We’ve been talking to the business for
years, but I learned new stuff in that
room… we got a lot of information from
Finance that we didn’t know existed”
Don Morris
Global Vice President
Mohawk Industries.
Mohawk Industries
34PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Innovation With Purpose
35PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Leonardo
Easily connect innovation
with existing and future
SAP and 3rd party
technologies, data, and
systems across core and
digital business
Scale
With new capabilities such
as Machine Learning,
Big Data, Analytics, IoT
on the SAP Cloud
Platform
Innovate
Modular capabilities that
are easy to buy, deploy and
consume. Open and
extensible with rich API’s.
Integrate
Source: SAP 2017 Digital Transformation Executive Study with Oxford Economics
37PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Next steps: Run and Win…
Optimize BusinessImprove productivity and customer experience, increase revenue
Transform BusinessNew digital products & services, new industries,
new business models
38PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Mode 2
Digital ambitions – It’s time to get started
Data Foundation
Mode 1
Business Intelligence
Intelligently connect people,
things, and businesses
Differentiate Businesses
Hyper-automate business
processes
Run Businesses
Deliver insights to drive strategic
decisions
Steer Businesses
Embrace Data
Orchestrate data of any
volume, velocity, and variety
39PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Get Inspired!
Timo Elliott, SAP
September 2017
@timoelliott
Thank You!