ASUG Webcast - Digital Transformation in Supply Chain - February 17 2016

8/19/2019 ASUG Webcast - Digital Transformation in Supply Chain - February 17 2016

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DIGITALIST MAGAZINE

• ExecutiveQuarterly

• A quarterly digital magazine that showcasesunder-the-radar trends and insights aboutthe emerging digital economy

• Next issue to launch in NovemberDownload on Apple StoreDownload on Google PlayView Current Issue

• Online Edition• Always-on digital companion on digital

journey• Provides the latest news and analysis of

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Digital Transformation in Supply ChainASUG Webcast February 17, 2

Martin Barkman, Vice President, Demand-Driven Business Planning, Extended Supply Cha


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

How Digital Transformation Is Impacting the Extended Supply ChainExamples of digital disruption

One of the largest taxi co

owns no taxisOne of the largest accomowns no real estate

One of the largest phone owns no infrastructure

One of the most valuableowns no inventory

One of the largest movie owns no cinemas

One of the largest music owns no music

One of the biggest book downs no books

Digital disruptionis happening

U B E R

airbnb

skype

Alibaba

NETFLIX

iTunes

Amazon


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How Digital Transformation Is Impacting the Extended Supply ChainDigital transformation in the extended supply chain

SResource ScarcitySustainability

D e s i gn

R e s p o n

dEnd-to-EndVisibility

Customers &Markets

Suppliers &Logistics

Products &Assets

People &Resources

Individualized ProductsIndustry 4.0

Cust


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How Digital Transformation Is Impacting the Extended Supply ChainDigital transformation in the extended supply chain

SResource ScarcitySustainability


Cust

D e s i gn

R e s p o n

d


People &Resources

Customers &Markets

Products &Assets

AssetIntelligence

Network

Product Safety& Stewardship

BusinessNetwork

IntegratedBusiness Plann


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Customer CentricityTransformation in the extended supply chain

Resource ScarcitySustainability


Cust

S

D e s i gn

R e s p o n


Customers &Markets


Products &Assets

People &Resources


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Customer CentricityGlobal trends driving customer centricity (2)

The first decade of this century wireduction in global poverty and athe middle class , but 71% of th

still subsists on less than $10 a dapeople live on less than $

Source:Pew Research Center, A Global Middle Clas

Millennials and

Generation Z

Social MediaCatalogsWeb Sites

MobileSmart Devices

KiosksRetail

Rising middle class inemerging markets

Proliferation and convergence of channels

http://icons.iconarchive.com/icons/iconshock/ecommerce/128/full-shopping-cart-icon.pnghttp://icons.iconarchive.com/icons/iconshock/ecommerce/128/full-shopping-cart-icon.pnghttp://icons.iconarchive.com/icons/iconshock/ecommerce/128/full-shopping-cart-icon.pnghttp://icons.iconarchive.com/icons/visualpharm/office-space/128/touch-screen-kiosk-icon.pnghttp://icons.iconarchive.com/icons/visualpharm/office-space/128/touch-screen-kiosk-icon.pnghttp://icons.iconarchive.com/icons/archigraphs/mac/64/iPhone-icon.pnghttp://icons.iconarchive.com/icons/archigraphs/mac/64/iPhone-icon.png


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MobileSmart Devices

KiosksRetail


“Generation Z is mobile firstonly, and they are nothing likSource: Brian Solis, 25 Disruptive Technolo

Millennials and

Generation Z




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A large majority of U.S. consumers ashopping , with 69% webrooming

online and buy in-store), and 4(browse products in-store and

Source: Harris Interactive, Showrooming anHoliday Shopping Season


MobileSmart Devices

KiosksRetail


Millennials and

Generation Z




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Customer Centricity A key enabler of a digitized supply chain

45%of enterprises are buildingdirect-to-customer fulfillmentcapabilitiesSource:SCM World’s 2014 Chief Supply Chain Officer survey

Omni-Channel Fulfillment

Omni-Channel S


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SAP Integrated Business Planning Solution: A new approach tosupply chain planning g approach

One Harmonized Data Model Avoid any latency due to integration efforts and leverage theSAP ERP data model

Cloud First ApproachThe solutions will be provided in the SAP Cloud but also bemade available on-premise

Mobile Enabled ExperienceIntroduce state-of-the art user experience with communication

capabilities (SAP JAM) and MS Excel Spreadsheets

Built on SAP HANADemand Networks require real-time monitoring and a focuson short-term planning and scenario simulation

New Planning AlgorithmsLeverage predictive analytics (e.g. demand sensing)algorithm in combination with optimization

SAP Integrated Business Planning

Inv

Response & Supply Dem

Sales & Operations Planning

Enhanced User Experience

Supply Chain Control Tower

SAP HANA Platform

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This documentwithout a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement


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Individualized ProductsDigital transformation in the extended supply chain



Cust

S

D e s i gn

R e s p o n


Customers &Markets


Products &Assets

People &Resources


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Individualized ProductsGlobal trends driving individualization of products

SMAPRO

SOLUTIONINDIVIDUALIZATION

SPEED OFINNOVATION

Market of OneMulti-faceted configuration and

highly variable demand with regionaland localized requirements.

Increase variants and reduce costs

DifferentiationMove first by highly flexible,

open and dynamic innovationprocesses. Insight-driven

decision making

MecDesign and prod

components a(design, electron

Analyze Big

DIGITALIZATION


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Individualized ProductsChanging the way we design, make, and deliver

80%of companies said that digitaloperations are critical toevery organizations

manufacturingcompetitivenessSource: Digital Manufacturing & Design Innovation Institute Digitized Inventory

Lot Size Configured Products

Industry 4.0

Persona


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Resource ScarcityDigital transformation in the extended supply chain



Cust

S

D e s i gn

R e s p o n


Customers &Markets


Products &Assets

People &Resources


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Talent Acquisition

Risk Management

Resource ScarcityBusiness challenges

• Insufficient resource visibility• High network dependencies• Increasing compliance and regulatory requireme

• Limited supp• Increasing so

the digital ag• Sustainabilit

accountabilit

• Aging workforce• Challenge of attracting workers• Skill requirements increase with

complexity• Contingent labor

64%of companies say that priorityaccess to scarce rawmaterials/capacity and

collaborative cost reductionwith suppliers are extremelyrelevant to their competitiveadvantageSource: SCM World’s 2014 Chief Supply Chain Officer survey

EnviroSocial

Sh i E


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Sharing EconomyDigital transformation in the extended supply chain (1/2)


D e s i gn

R e s p o n


Customers &Markets


Products &Assets

People &Resources


Cust

S

Sh i E


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Sharing EconomyDigital transformation in the extended supply chain (2/2)

50%of networked companies are morelikely than their peers to haveincreased sales, higher profitmargins, and be market leadersSource: McKinsey

ManufacturingLogistics

ResponseNetwork

StrategicSourcing

ProductComplian

ManufacturingNetwork

ProjectNetwork

Di it l C f th E t d d S l Ch i


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Digital Core of the Extended Supply ChainDigital transformation in the extended supply chain


D e s i gn

R e s p o n

dTheDigitalCore

Customers &Markets


Products &Assets

People &Resources


Cust

S

Digit l C f th E t d d S l Ch i


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Digital Core of the Extended Supply ChainLiving in a digital economy

Last two years

90 %of the world’s data hasbeen generated 1

Last two years

40 %growth in adoption ofbusiness networks 2

1 ScienceDaily , May 22, 2013.2 Technology Ado ption Report on Business

Networks, Ardent Partners, 2014.

3 Internet of Things (IoT) 2013 to 2020 Market Forecast: Billions of Things, Trillions of Dollars, IDC, 2013.

4 Statista, 2014.

212 billionEnd of 2020

“things” will be connected 3

By 2020

9 billionmobile users in the world 4

In 2014

51 %of workloads pr

5 Cisco GloMethodolSystems I

Digital Core of the Extended Supply Chain

http://www.sciencedaily.com/releases/2013/05/130522085217.htmhttp://www.sciencedaily.com/releases/2013/05/130522085217.htmhttp://cporising.com/2014/10/09/introducing-ardent-partners-technology-adoption-report-on-business-networks/http://cporising.com/2014/10/09/introducing-ardent-partners-technology-adoption-report-on-business-networks/http://cporising.com/2014/10/09/introducing-ardent-partners-technology-adoption-report-on-business-networks/http://cporising.com/2014/10/09/introducing-ardent-partners-technology-adoption-report-on-business-networks/http://cts.businesswire.com/ct/CT?id=smartlink&url=http://www.idc.com/getdoc.jsp?containerId=243661&esheet=50721954&newsitemid=20131003005687&lan=en-US&anchor=Internet+of+Things+(IoT)+2013+to+2020+Market+Analysis:+Billions+of+Things,+Trillions+of+Dollars&index=4&md5=59da372afbdafaa6e8563b0f5d6412f0http://cts.businesswire.com/ct/CT?id=smartlink&url=http://www.idc.com/getdoc.jsp?containerId=243661&esheet=50721954&newsitemid=20131003005687&lan=en-US&anchor=Internet+of+Things+(IoT)+2013+to+2020+Market+Analysis:+Billions+of+Things,+Trillions+of+Dollars&index=4&md5=59da372afbdafaa6e8563b0f5d6412f0http://cts.businesswire.com/ct/CT?id=smartlink&url=http://www.idc.com/getdoc.jsp?containerId=243661&esheet=50721954&newsitemid=20131003005687&lan=en-US&anchor=Internet+of+Things+(IoT)+2013+to+2020+Market+Analysis:+Billions+of+Things,+Trillions+of+Dollars&index=4&md5=59da372afbdafaa6e8563b0f5d6412f0http://cts.businesswire.com/ct/CT?id=smartlink&url=http://www.idc.com/getdoc.jsp?containerId=243661&esheet=50721954&newsitemid=20131003005687&lan=en-US&anchor=Internet+of+Things+(IoT)+2013+to+2020+Market+Analysis:+Billions+of+Things,+Trillions+of+Dollars&index=4&md5=59da372afbdafaa6e8563b0f5d6412f0http://www.statista.com/statistics/218984/number-of-global-mobile-users-since-2010/http://www.cisco.com/c/en/us/solutions/collateral/service-provider/global-cloud-index-gci/Cloud_Index_White_Paper.htmlhttp://www.cisco.com/c/en/us/solutions/collateral/service-provider/global-cloud-index-gci/Cloud_Index_White_Paper.htmlhttp://www.cisco.com/c/en/us/solutions/collateral/service-provider/global-cloud-index-gci/Cloud_Index_White_Paper.htmlhttp://www.statista.com/statistics/218984/number-of-global-mobile-users-since-2010/http://cts.businesswire.com/ct/CT?id=smartlink&url=http://www.idc.com/getdoc.jsp?containerId=243661&esheet=50721954&newsitemid=20131003005687&lan=en-US&anchor=Internet+of+Things+(IoT)+2013+to+2020+Market+Analysis:+Billions+of+Things,+Trillions+of+Dollars&index=4&md5=59da372afbdafaa6e8563b0f5d6412f0http://cporising.com/2014/10/09/introducing-ardent-partners-technology-adoption-report-on-business-networks/http://www.sciencedaily.com/releases/2013/05/130522085217.htm


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Digital Core of the Extended Supply ChainBusiness leaders need to digitally transform

How can I digitize my core?

Core Business Processes

Move away from lengthy and time-consuming batch processes

React quickly to market signalshappening in real time across the

value chain

Connect my enterprise to people,devices, business, and social

networks


D e s i gn

R e s p o n

dTheDigitalCore

Customers &Markets


Products & Assets

People &Resources




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Outdated decision makingBatch processes preventingrelevant decision making basedon real-time, latest information

Complex tecSystems desigtransactional dand analytical

Although inteinherent data prevents immkey data

Digital Core of the Extended Supply ChainBut often complexity is standing in the way

Complex system landscapeMany applications & disparatesoftware for different processes,creating different versions of truth,duplicated and scatteredinformation

Scattered information TechnologBatch orientation



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Digital Core of the Extended Supply ChainSAP S/4HANA – A new business suite for new business outcomes

• Real-time processes• Digitally connected enterprise• Best business practices

• Simplified d• Choice of d• Open innov

• Live business insight• Role-based experience• All devices

Decision making TecBusiness processes

Immediate business impact New profit models Much lower TCO



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Digital Core of the Extended Supply ChainSimplify the increased complexity

Decision making TecBusiness processes

Extended

supply chain

Business Network

SAP S/4HANA

Design

Produce

Operate

Deliver

Plan

Respond

Connectors

SAP Fiori on any device

On-premise

Cloud

Internet of Things


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Thank you

Contact information:

[email protected]


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ASUG Webcast - Digital Transformation in Supply Chain - February 17 2016