Mike Luk

26 July 2016

Produce Better with Real-Time Supply Insights

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Business transformation in Industrial Manufacturing

Digital CoreDigital Economy Digital Transformation

1. Connected Equipment

2. Big data

3. Industry 4.0/Internet of things

Digital CoreDigital Economy Digital Transformation

Connected Design Linking telemetry data with operational and design data provides complete lifecycle

visibility for improved design

business outcome: lower cost, higher quality

Serving the segment of one better synchronization of processes, data and tasks across the highly complex and

intertwined manufacturing and channel value chains

Transition from reactive to proactive by detecting and analyzing patterns and root-

causes as never before

Improve agility in response new technologies such as 3D printing quickly adapting

processes

business outcome: higher revenues through faster time 2 market

Connected Manufacturing move from batch to real-time manufacturing processes such as MRP to always meet

demand

get real-time feeds via Internet of Thing to automate operations

business outcome: increase cost efficiency and asset utilization

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3

SAP Runs SAP - Leading the way with SAP S/4HANA

Protect existing investment

Corporate ERP

2012-2015Redefine Business to be a Live business

Security

SAP HANA Platform

Digital Core

Suppliers

& networks

Customer

experience

Workforce

engagement

loT

& big data

2017 - 2018

HANA

Business process re-engineering &

new business models

Corporate

ERPS/4HANA

2016

Central

Finance

HANA

FIN Add-OnFinance

Add-On

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SAP S/4HANA - Next Generation Suite

S/4HANA

SERVICE

S/4HANA

HUMAN RESOURCES

S/4HANA

MANUFACTURING

S/4HANA

SUPPLY CHAIN

S/4HANA

MARKETING

S/4HANA

FINANCE

S/4HANA

SALES

S/4HANA

SOURCING AND

PROCUREMENT

S/4HANA

ASSET

MANAGEMENT

S/4HANA

RESEARCH AND

DEVELOPMENT

The D

igita

l Core

The

Dig

ital C

ore

Enterprise Management

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SAP S/4HANA simplifies the data model, processes, and user interfaces, and consolidates application landscapes.

Data Model

Simplification

Process

Simplification

UI/Business Flow

Simplification

No indices & aggregates , no

locking. Significantly reduces

data footprint, enabling larger

data sets in one system.

Many obsolete processes have been

eliminated while core processes have

been simplified to speed up processing,

up to 20 times faster.

Role-based user experience based

on modern design principles.

Increased user productivity with

less/no training.

Key Simplifications

Landscape

Simplification

(Best-of-Breed)

Retrofitted best-of-breed capabilities in

S/4HANA. Faster processing, faster

deployment and innovation cycles, and

less maintenance.

Landscape

Simplification

(OLTP + OLAP)

Transactions and analytics in the same

system. All data – geo, text, social,

spatial, etc. Real-time decision support

at highest level of granularity.

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SAP S/4HANA delivers innovations across key business areas.

Finance

Inventory Management

& Material Valuation Procurement

Order Management

& Billing

MRP, Capacity

Planning, ATP

Industry Add-On

to Core

Common view of all financial and

operational data with real-time

analytics, prediction, and

simulation.

Streamlined inventory management and

material valuation with parallel posting

and embedded analytics.

Increased efficiency in procure-to-

pay process. Self-service

requisitioning and supper evaluation

apps with consumer grade user

experience.

Real-time oversight of entire order-to-

cash process. Real-time insight into

process issues, regardless of process

step.

On-time order fulfillment in desired

quantity with automatic back-order

processing.

One platform for multiple industries.

Harmonized shipment cycle for all

customers.

Key Business Innovations

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Solve External & Internal Production Issues with S/4HANAMore frequent MRP runs & improved, streamlined UI for fast resolution

MRP RUN

NEW MRP RUN: MD01N

~10X faster

~5 x reduced storage*

Creates and schedules Orders for

requirement date

New mode for procurement and in-house

production, delivery schedules and

configurable materials

Classic mode for subcontracting, capacity

planning and discontinuation

Leveraging HANA capabilities for

Parallelization

MRP Analysis for External & Internal

Requirements Detect disruptions in the material flow

Simulate the impact of issues in real-time

Get Solution proposals

for decision support

Exception and KPI

driven process

Shorter time-to-action

* Improvements depending on scenario

Purchase Order

/ Requisition

Stock Transfer

Reservations

Schedule Lines

Production Order

Planned Order

Internal

Requirements (Independent & Dep. Requirements,

Subcontracting)

External

Requirements(Sales Orders, Forecast)

Monitor Production Orders Detect issues in the production flow

Customize own worklists

Find root causes

Solve issues via

Internal Requirements

Use Change Requests

to track resolution flow

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8

Roles & Apps related to Manufacturing (Material Planner)

Monitor / Manage External Requirements

Monitor / Manage Material Coverage

Display MRP Material issues

Documentation:

S/4HANA

MRP

FIORI App

Library

Maintain MRP Controllers

Schedule MRP Runs

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9

Roles & Apps related to Manufacturing (Material Planner)

Monitor / Manage Internal Requirements

Monitor / Manage Production / Process Orders

Manage Change Requests

Documentation:

S/4HANA

Production

Planning &

Control

FIORI App

Library

Manage Planned Independent Requirements (PIR)

Schedule Order Conversion

Schedule Order Release Runs

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The Result?

Better decisions, faster.

Accelerated business processes.

Simulation, Prediction, Recommendation

Simulation

Proposal

A single blended environment enables

data to be accessed and analyzed

as it is captured.

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12

SAPS/4HANA

SAP S/4HANA

Cloud Edition

Non-SAP

Cloud

Non-SAP

ApplicationsBusiness Suite

HCI HCI

HCI, PI, SLT

HCI, PI, SLT

and Others

HCI, PI, SLT

and Others

Clo

ud

On-P

rem

ise

HCI = HANA Cloud Integration

PI =Process Integration

SLT= System Landscape Transformation

Pre-packaged Integration

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Re-architected for in-

memory platform

Real-time and predictive

processes

Simplification of entire

solution

Instant insight-to-action based on real-time information

All data, No latency

Unrestricted granularity

Built-in integration

Continuous processing

Real-time analytics

Predictive forecasting

Embedded simulation

Preserves best functionality

Modern UI, all devices, role-based

New solutions

Summary

Analyze Plan Transact

Productivity

Agility

Revenue

TCO

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