32
Solution Overview Energy and Sustainable Operations Sustainable Foundation for Profitable Growth Build a Strong Foundation for Growth Executive Summary SAP Solutions SAP Innovations References Contact Us © 2013 SAP AG or an SAP affiliate company. All rights reserved.

Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

  • Upload
    others

  • View
    0

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

Solution Overview

Energy and Sustainable Operations

Sustainable Foundation for Profitable Growth

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Page 2: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

2 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

The business case for sustainable growth is stronger than ever. Operations that

focus on increasing economic, social, and environmental performance can

contribute to profitable growth. They can also enhance the brand, drive innovation,

manage risks, improve efficiency, and satisfy stakeholders.

Meeting customer and regulatory requirements

across global and regional markets poses

operational challenges to even the best-run

organizations. Failure to meet requirements

can lead to costly fines and loss of customers.

Global demand for energy, water, and other

natural resources threatens to outstrip supply,

leading to shortages and cost increases.

Demand for operational transparency combined

with the immediacy of social media and

electronic communication can place brand

value at risk.

Profitable growth stems from an organization’s

ability to manage risks and operate effectively

regardless of complexity and unpredictability.

Organizations need to develop the capability to

act swiftly and decisively during unexpected

events.

Through integrated applications that embed

sustainable practices and risk-management

controls in business processes, “Big Data”

management, analytics, and mobile technology,

enterprises can gain a foundation to meet these

challenges.

A Business Case for Sustainable Growth

Operations Excellence

Creating Sustainable

Operations

SAP Innovations

Sustainability as a

Value Driver

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Page 3: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

3 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Running operations sustainably is essential to achieving long-term profitability and

brand equity. Effectively managing energy and environmental resources can

increase profitability. Proactively mitigating safety and compliance risks can ensure

business continuity.

Sustaining Operational Excellence

Industry leaders practice environmentally

responsible business processes to achieve

operational excellence. They understand that

managing environmental resources is just as

important as managing financial, human, and

manufacturing resources.

There is increasing pressure to manage

operational risks to minimize harm to people

and the environment. Leading organizations

promote a culture of safety by embedding risk-

management practices into core business

processes.

Product stewardship is a key competitive

differentiator when selling products in global

markets. Effective stewardship requires a clear

understanding of regulatory requirements,

efficient supply-chain collaboration, and robust

business-process control to improve

compliance.

Transparency is also essential for operational

excellence. Companies need to increase

transparency into business practices for

compliance, risk management, and product

stewardship in order to satisfy key stakeholders

and to protect and improve brand value.

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Operations Excellence

Creating Sustainable

Operations

SAP Innovations

Sustainability as a

Value Driver

Page 4: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

4 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Companies that invest

in eco-efficiency, which

improves productivity

while reducing negative

environmental impacts

Source: SAP Performance

Benchmarking

53%

Many organizations leverage sustainable operations to improve products and

processes and to operate profitably. Through these operational practices and

related performance, they’re entering and thriving in global markets. They’re

seizing emerging opportunities for marketable products and services.

Sustainability as a Driver of Value

Operational excellence requires managing

energy and environmental resources as

effectively as financial and human resources.

It establishes a solid foundation to address

thousands of permitting, pollution-prevention,

and environmental-management requirements.

A key principle of sustainable operations is to

encourage people and processes to embrace

safety and risk management. Proactive risk

management is achieved by performing a

thorough assessment of all operational risks,

designing and implementing controls,

communicating safety information, and

managing change safely in the plant

environment with an eye towards improving

safety.

Customer and regulatory demands for product

stewardship make collaboration with the supply

chain essential. This collaboration helps ensure

that products are free of hazardous materials.

Accurate product analyses, labeling, and

communication processes help ensure

regulatory compliance and enhance product

marketability.

Operational excellence fosters a culture of

continuous improvement and supports related

endeavors – such as safety enhancements and

energy-efficiency programs – with full visibility

into financial and performance metrics.

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Operations Excellence

Creating Sustainable

Operations

SAP Innovations

Sustainability as a

Value Driver

Page 5: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

5 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Long-term growth requires an agile technology foundation that embeds sustainable

practices into core operations. Solutions for Big Data, analytics, mobile technology,

and cloud-based deployment help to establish these practices.

Organizations are inundated with data that

needs to be managed effectively for compliance

and performance management. Database and

technology solutions including the SAP HANA

platform, which incorporates in-memory

technology, are fundamental to transforming

large volumes of raw data coming from sensors,

machines, and people into information to

support real-time risk-management actions.

Analytics solutions enable analysis to predict

the likelihood of incidents and identify cause-

effect relationships so people can take

proactive actions. Rapid analytics can help

adjust energy-consumption patterns in real-time

to reduce costs.

Mobile solutions such as the SAP EHS Safety

Issue mobile app can promote a culture of

safety by allowing all employees to record and

communicate safety issues via a mobile device

and making relevant safety information

available at the point of action.

Cloud-based solutions such as the

SAP Product Stewardship Network support

collaboration to connect many industry supply

chains into one digital ecosystem to promote

transparency and sustainability.

SAP Innovations

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Operations Excellence

Creating Sustainable

Operations

SAP Innovations

Sustainability as a

Value Driver

Page 6: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

6 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

The key to sustainable growth is an organizational ability to enter and expand into

new and existing markets while actively mitigating risks to growth.

Mitigate Risk

To ensure business continuity, a company must anticipate and reduce the likelihood

of incidents and be ready to respond if they occur.

Operate Profitably

Using energy and environmental resources efficiently can increase profits, reduce

price volatility, and minimize environmental impact.

Ensure Marketability

As terms for selling or buying products, regulatory authorities and customers demand

that companies follow robust product-stewardship processes.

Operate Transparently

Companies are expected to operate transparently and disclose sustainability-

performance data as a precondition of business.

Build a Strong Foundation for Growth

Manage and Mitigate Risk

Build a Strong Foundation

for Growth

Operate Profitably

Achieve Operational

Transparency

Ensure Product

Marketability

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Page 7: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

7 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

On the path to sustainable growth, operational risks can

make even best-run companies stumble. Companies

must identify potential risks and establish controls to

reduce the likelihood and severity of adverse events. If

incidents occur, companies must be prepared, learn, and

improve.

Best-run organizations stay informed and learn

from a broad experience base to anticipate and

avoid threats and risks. They rely on effective

operational-risk-management systems to

ensure business continuity.

In industries that operate in inherently

dangerous environments – such as oil and gas,

chemicals, and mining – safe operations is a

major goal supported by operational-risk-

management best practices.

Through these practices, organizations perform

thorough risk assessments, design operational

controls, and communicate safe work practices.

They can test and monitor operational controls,

capture incidents, and learn from incidents to

influence change.

To support these processes, companies must

achieve effective automation, integration of

people and data, and performance-oriented

analytics for understanding trends, patterns,

and opportunities for improvement.

79%

Manage and Mitigate Risk

Lower recordable accident

frequency with the establish-

ment and monitoring of strong

safety measures for people

and assets

Source: SAP Performance

Benchmarking

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Manage and Mitigate Risk

Build a Strong Foundation

for Growth

Operate Profitably

Achieve Operational

Transparency

Ensure Product

Marketability

Page 8: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

8 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Fewer regulatory citations for

companies that perform in the

top 25% as compared to

average performers

Source: SAP Performance

Benchmarking

Best-run organizations use and manage energy and

environmental resources as effectively as financial ones.

They do this by making energy and environmental

performance more visible and implementing best

practices that minimize consumption, cost, and

environmental impact.

Energy and environmental resource manage-

ment is important for achieving operational

excellence. Through smart management of

energy-consuming assets, organizations can

set the foundation for excellence. Understanding

consumption patterns of energy and environ-

mental resources and correlating them to

production, asset performance, and analytics

can reveal opportunities for improvement.

These opportunities can then be translated into

initiatives to drive significant savings in

consumption and costs.

For success and broad adoption of energy and

environmental initiatives, companies must

measure their impact on performance.

Organizations need robust compliance

management at global and local levels to meet

pollution-prevention requirements outlined in

their operating permits. Effective management

of emissions is critical to forecasting and

managing related costs and minimizing

environmental impact.

79%

Operate Profitably

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Manage and Mitigate Risk

Build a Strong Foundation

for Growth

Operate Profitably

Achieve Operational

Transparency

Ensure Product

Marketability

Page 9: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

9 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Manufacturers rely on a comprehensive product-

stewardship process to ensure global marketability of

their products. This process helps them understand

and meet regulatory requirements, ensure compliance

across the supply chain, and support recycling of

products at the end of their lifecycle.

An effective product-stewardship program can

help organizations expand marketability to

more geographies and rapidly get products to

market. A comprehensive program incorporates

many processes and controls across the

complete product lifecycle. These steps help

manufacturers meet regulatory and customer

requirements and optimize environmental

performance.

The process begins with a thorough

understanding of global and regional

regulations across the product portfolio.

By evaluating compliance and collaborating

with the supply chain, manufacturers reduce

risk of noncompliance. Controls and

communication requirements for purchasing,

inventory management, transportation, and

sales help ensure compliance and the safety of

people and the environment.

Finally, establishing effective end-of-lifecycle

reporting and management processes is critical

for recycling products and related packaging

and waste responsibly.

Ensure Product Marketability

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Manage and Mitigate Risk

Build a Strong Foundation

for Growth

Operate Profitably

Achieve Operational

Transparency

Ensure Product

Marketability

Page 10: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

10 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Companies that share

information on environmental,

health, and safety compliance

with employees, customers,

and regulators on a regular

basis

Source: SAP Performance

Benchmarking

Enterprises that are leaders in sustainability are

transparent to their stakeholders including customers,

regulators, employees, and shareholders. They simplify

data-collection and disclosure processes for increased

focus on initiatives that improve performance.

Establishing a sustainability strategy and

performance goals calls for a deep

understanding of organizational imperatives,

past performance, and the potential for

improvement.

Sustainability leaders leverage standard,

industry-specific key performance indicators

based on Global Reporting Initiatives (GRI) to

guide strategy and data-collection efforts.

Often, data-collection processes are simplified

and automated so stakeholders can focus on

more pressing matters.

These include setting organizational targets,

cascading those targets to individual business

units and operational activities, and assessing

internal and external benchmarks.

To improve sustainability, these organizations

design and implement initiatives that support

performance goals. They also disclose

progress and results transparently to engage

their stakeholders.

41%

Achieve Operational Transparency

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Manage and Mitigate Risk

Build a Strong Foundation

for Growth

Operate Profitably

Achieve Operational

Transparency

Ensure Product

Marketability

Page 11: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

11 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Energy and Sustainable Operations Value Map

SAP solutions address key requirements for building a foundation for

profitable growth.

SAP Solutions

Operational Risk Management

Product Stewardship for

Process

Product Stewardship for

Discrete

Energy and Environment

Sustainability Reporting

Incident

Management

Work Permit

Management

EHS Risk

Assessment

Management of

Change

Maintenance

Worker Safety

Management

Energy

Transparency

and Performance

Management

Energy and

Environmental

Initiatives

Management

Emissions

Management

Environmental

Regulatory

Compliance

Product

Compliance

Recycling

Administration

Dangerous

Goods

Management

Substance

Volume Tracking

Product Safety

Communication

Chemical

Compliance

Recycling

Administration

Product and

REACH

Compliance

Dangerous

Goods

Management

Product Safety

Communication

Sustainability

Reporting and

Performance

Management

Operational Risk

Management

Sustainability

Reporting

Product Safety

and Stewardship

for Process

Industries

Product Safety

and Stewardship

for Discrete

Industries

Energy and

Environmental

Resource

Management

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Page 12: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

12 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Reduction in lost-time

accident frequency for

organizations performing

in the top 25% as compared

to average performers

Source: SAP Performance

Benchmarking

67%

Operational Risk Management

Reduce risks to ensure safety and business

continuity.

Organizations can manage risk by performing thorough risk

assessments, designing effective controls, and communicating safe

work practices. Testing these controls, capturing incidents, and

learning from them can enable change and support continuous

improvement.

Incident

Management Communicate safety issues and enable subject-matter experts to respond,

investigate, analyze, correct, prevent, and report incidents.

EHS Risk

Assessment

Facilitate comprehensive assessment of all environment, health, and safety (EHS)

risks. Implement, manage, and communicate control.

Management of

Change

Make plant changes safer through automation and the use of templates, effective

rules, and involvement of people. Mitigate risks caused by changes to equipment,

substances, operating conditions, and procedures.

Maintenance

Worker Safety

Management

Integrate EHS information into plant maintenance tasks and automatically generate

work-order safety plans.

Work Permit

Management

Control hazardous situations such as high-voltage work, hot work, and confined-

space entries by using rigorous permit and energy isolation processes.

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

SAP Solutions

Operational Risk Management

Product Stewardship for

Process

Product Stewardship for

Discrete

Energy and Environment

Sustainability Reporting

Page 13: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

13 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Companies that take

environmental, health, and

safety issues into account

during core business planning

Source: SAP Performance

Benchmarking

85%

Energy and Environmental Resource Management

Improve visibility and reduce energy and

environmental impact.

Monitoring and correlating consumption of energy and environmental

resources to operational performance can help organizations identify

patterns and make improvements. Implementing the appropriate

initiatives and automating compliance activities can help reduce

consumption, cost, and environmental impact.

Energy

Transparency and

Performance

Management

Improve visibility of consumption by integrating plant assets, smart meters, and

sensors. Reduce consumption and cost by correlating energy usage with operations

and asset performance.

Energy and

Environmental

Initiatives

Management

Track improvement projects and identify those that yield the greatest financial,

operational, and environmental benefits.

Emissions

Management

Manage regulated and voluntary emissions management processes. After

calculating emissions by source and facility, trade in open markets to generate

revenue and reduce costs and risks of noncompliance.

Environmental

Regulatory

Compliance

Automate and simplify environmental-permit management process. Document and

evaluate applicability of permits related to environmental regulations. Monitor permit

deviations, take corrective actions, and report to regulatory agencies.

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

SAP Solutions

Operational Risk Management

Product Stewardship for

Process

Product Stewardship for

Discrete

Energy and Environment

Sustainability Reporting

Page 14: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

14 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Lower environmental, health,

and safety costs for companies

that perform in the top 25%

as compared to average

performers

Source: SAP Performance

Benchmarking

63%

Product Safety and Stewardship (Discrete)

Enable global manufacturers to innovate and grow

confidently.

Environmental and safety requirements are driving companies to

establish product stewardship programs to cover all phases of the

product lifecycle. These programs address design, sourcing, and

manufacturing controls to ensure compliance, correct labels, safety

communication, and end-of-life recycling.

Product

Compliance Secure product marketability and protect revenue and brand value while addressing

increased complexity of product and environmental requirements.

Dangerous Goods

Management

Help ensure compliance with requirements for the transport of products classified as

dangerous goods.

Substance Volume

Tracking

Safeguard business continuity while complying with requirements to monitor

volume thresholds.

Product Safety

Communication

Support revenue growth by ensuring timely generation and distribution of safety

data sheets.

Recycling

Administration

Manage extended producer-responsibility obligations under recycling regulations for

packaging, battery, and waste electrical and electronic equipment (WEEE).

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

SAP Solutions

Operational Risk Management

Product Stewardship for

Process

Product Stewardship for

Discrete

Energy and Environment

Sustainability Reporting

Page 15: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

15 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Product Safety and Stewardship (Process)

Manage safety and compliance for the product

lifecycle.

Evaluate compliance and assess safety to ensure products can be

legally marketed, sold, and shipped. Ensure safe handling and

storage of hazardous substances through material classification and

safety checks. Update customers with accurate safety data sheets in

appropriate format and language.

Chemical

Compliance Monitor purchases, manufacturing, and sales-order transactions and evaluate

against allowed volumes and required registrations to issue threshold alerts.

Product and

REACH

Compliance

Protect revenue and brand value by ensuring environment, health, and safety

product compliance and global marketability.

Dangerous Goods

Management

Warrant the safe transport of hazardous materials and products. Provide correct

dangerous-goods classification, use adequate packaging, and select the right

transportation mode and route.

Product Safety

Communication

Communicate product-safety information to customers. Accurately classify products

and generate and deliver safety data sheets and labels in appropriate format and

language.

Recycling

Administration

Leverage predefined reporting templates to generate accurate compliance

documentation and fee calculations.

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

SAP Solutions

Operational Risk Management

Product Stewardship for

Process

Product Stewardship for

Discrete

Energy and Environment

Sustainability Reporting

Page 16: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

16 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Reduction in audit cycle time

for organizations that perform

in the top 25% as compared

to average performers

Source: SAP Performance

Benchmarking

77%

Sustainability Reporting

Transform sustainability strategy into higher

performance.

Establishing a sustainability strategy requires understanding past

performance and setting appropriate key performance indicators and

related targets. It calls for measuring performance, implementing

improvement initiatives, and confidently disclosing information to all

stakeholders.

Sustainability

Reporting and

Performance

Management

Reduce the time and cost of collecting operations data for sustainability. Through

automation, companies can focus on strategic tasks that drive performance.

They can also implement and track improvement initiatives to achieve higher

performance. With a solid foundation in place, organizations can operate with

greater transparency and disclose sustainability performance to stakeholders with

confidence.

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

SAP Solutions

Operational Risk Management

Product Stewardship for

Process

Product Stewardship for

Discrete

Energy and Environment

Sustainability Reporting

Page 17: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

17 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Agile data management, advanced analytics, and mobile

technology can enable sustainable growth more profitably

than ever. Technology can help sustainability staff predict

the likelihood of incidents, inform others of hazards, and

engage the supply chain to reduce noncompliance risks.

SAP Innovations

SAP HANA

Transform high-volume and high-velocity data into action with in-memory computing that enables

real-time risk management.

Mobile

To improve safety performance, collect and provide safety-related information to everyone, any

time, on all devices.

Analytics

Focus on leading indicators and related performance metrics to drive continuous improvement in

health, safety, and environmental-management processes.

Cloud

Leverage network-based business processes to improve supply chain transparency and

dramatically reduce product-compliance pressure across the value chain.

47% Companies with standardized,

auditable, and transparent

environmental business

processes across all business

units and locations

Source: SAP Performance

Benchmarking

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Page 18: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

18 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Fewer environmental

incidents for companies

performing in the top 25%

compared to average

performers

Source: SAP Performance

Benchmarking

SAP HANA

77%

As the volume, velocity, and variety of data grows

exponentially due to the use of condition-monitoring

sensors and machine-to-machine communication,

so does the opportunity to save natural resources,

proactively manage risks, and continuously improve

products and processes.

Energy

Transparency and

Performance

Management

Energy Consumption Visibility

Collect, manage, and analyze high-volume and high-velocity data from smart meters

and sensors to adjust consumption patterns, reduce cost, and find opportunities for

improving efficiency.

Incident

Management

Predictive Safety

Analyze and understand the likelihood of incidents based on patterns from

operational systems such as maintenance and engineering and sensors that

provide real-time data.

Product

Compliance

Product Compliance

Create an agile product compliance foundation to address dynamic customer and

regulatory requirements and reduce the time it takes to introduce new products and

changes in global markets.

Sustainability

Reporting

Sustainability Reporting

Analyze sustainability data from the top floor to the shop floor. Find and implement

improvement opportunities by integrating the software environment and facilitating

collaboration across the organization.

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

Page 19: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

19 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Fewer recordable accidents

for companies in the top 25%

as compared to average

performers

Source: SAP Performance

Benchmarking

Mobile

65%

Collect and share safety information and insight on

any mobile device to promote a culture of safety and

performance. Use augmented-reality techniques to

give employees safety information via rich, virtual 3D

environments.

Operational Risk

Management

Environmental Health and Safety Issues

Help employees compile operational-safety issues to promote a culture of safety.

Provide broad access to compelling safety information by combining virtual

geographic information systems (GIS) with 3D environments.

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

Page 20: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

20 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Lower frequency of

recordable accidents in

companies that establish

and monitor strong safety

measures for people and

assets

Source: SAP Performance

Benchmarking

Analytics

79%

Sustaining operational excellence requires the ability to

monitor leading indicators and identify improvement

opportunities. These practices are supported by rich

analytics that allow stakeholders to readily understand

trends, patterns, root causes, and the effectiveness of

improvement actions.

Energy and

Environmental

Resource

Management

Forecast, analyze, and understand how energy and environmental resources are

used to support operations. Implement improvement projects and measure their

impact on operational performance.

Operational Risk

Management

Collect and analyze data about indicators such as risk assessments, observations,

and near misses to proactively address and prioritize risk-reduction efforts. Analyze

incidents, related root causes, and corrective actions to improve safety performance.

Sustainability

Reporting

Analyze sustainable-operations data by integrating and collecting data from relevant

sources to benchmark performance, find opportunities for improvement, and monitor

the impact of improvement projects.

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

Page 21: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

21 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Companies surveyed that are

fully aware of all regulations

applicable to operations and

processes

Source: SAP Performance

Benchmarking

Cloud

9%

Cloud solutions play a key role in helping organizations

collaborate with their value chains to improve transpar-

ency and reduce risk. These solutions also let companies

leverage global regulatory expertise, up-to-date regulatory

content, and best-practice processes to reduce cost,

complexity, and risks.

Product

Compliance

SAP Product Stewardship Network

The SAP Product Stewardship Network is an online collaboration community that

enables manufacturers and their supply chains to obtain and/or distribute product-

and material-related sustainability data. The online collaboration community drives

efficiency, data quality, and trusted supplier relations within product compliance

programs. This helps reduce compliance risk and prevents time-to-market delays.

Product Safety

Communication

SAP EHS Regulatory Documentation OnDemand

The SAP EHS Regulatory Documentation OnDemand content service is a cloud-

based safety data sheet solution that helps process industry manufacturers and

formulators and reduce the cost and complexity of meeting global product-safety

requirements.

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

Page 22: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

22 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Best-Run Customers

Our customers represent 85% of the top 100 most-valued brands in the world.

Product safety software from SAP touches US$5 trillion of all manufactured goods.

Our customers represent 100% of the top-scoring companies in the Dow Jones

Sustainability World Index.

SAP has been ranked the software-sector leader in the Dow Jones Sustainability

Index for 6 consecutive years.

Best-Run Customers

ArcelorMittal

Givaudan Suisse

Dow Corning

Solvay

NOVA Chemicals

Why SAP?

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Page 23: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

23 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

SAP co-innovates with leading companies across the globe through the

Sustainability Executive Advisory Council and regional subgroups with subject-

matter expertise in each solution area.

Customer Co-Innovation

Multiple Pathways for Participation

Customers can participate in solution-area

lighthouse councils to provide strategic

direction or testing, feedback, and validation

of products in development.

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Best-Run Customers

ArcelorMittal

Givaudan Suisse

Dow Corning

Solvay

NOVA Chemicals

Why SAP?

Page 24: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

24 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

“The ability to easily access employees’ health indicators and make sure that the

occupational health processes are being conducted accordingly shows us, on a

daily basis, the benefits of using SAP EHS Management.”

Enilson Miranda Santos, Personnel Admin Manager, ArcelorMittal Brasil

ArcelorMittal Brasil is one of Latin America’s main steelmaking

companies with a significant presence in the long and flat

carbon steel sectors.

The company chose the SAP Environment, Health, and Safety

Management application to replace its disparate collection of legacy

health and safety solutions. As a result, ArcelorMittal Brasil standardized

its processes and set a benchmark for excellence within the global

ArcelorMittal group.

Key Benefits

Greater access to consolidated environment, health, and safety (EHS)

data with online analytics and management reports

Single solution for standardized EHS management

Real-time integration of EHS practices throughout facilities and

business areas

Ability to negotiate better insurance rates

80% Reduction in time to

complete accident

investigations and

reports

50% Increase in the identification of anomalies

40% Reduction in cost of occupational health exams

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Best-Run Customers

ArcelorMittal

Givaudan Suisse

Dow Corning

Solvay

NOVA Chemicals

Why SAP?

Page 25: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

25 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

“Instead of having a huge number of applications around the world supporting our

sustainability initiatives, we now have a single, reliable application that is centrally

managed by a small team. The savings in IT are obvious, but that’s only the

beginning.”

Dave Johnson, Business Process Team Leader, Dow Corning Corporation

Dow Corning Corporation develops silicones and silicon-

based technologies for a host of industries. The firm is a giant

in the chemicals industry, serving the diverse needs of more

than 25,000 customers in over 30 countries on 5 continents.

The firm welcomed the release of the SAP Environment, Health, and

Safety Management (SAP EHS Management) application, which

comprehensively addresses sustainability issues, and became the

world’s first production user of most of its functionalities.

Key Benefits

Recovered investment within 2 years through cost savings

Cut time to comply with requirements of new geographies by over

75%

Reduced processes for shipment compliance verification and MSDS

population from days or weeks to the push of a button

Improved ability to ship on time

Recovered investment within 2 years

50% Increase in the identification of anomalies

40% Reduction in occupational health exams cost

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Best-Run Customers

ArcelorMittal

Givaudan Suisse

Dow Corning

Solvay

NOVA Chemicals

Why SAP?

Page 26: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

26 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

“We now have a global EHS management platform that helps employees develop,

produce, and market products in full legal compliance with all nations’ laws.”

Adrien Gonckel, Head of IT and Member of the Executive Committee, Givaudan S.A.

Givaudan develops ingredients for consumer products,

personal care, and fine fragrances companies, as well as for

food and beverage manufacturers. Givaudan – which runs

80 global locations, 33 production sites, and 60 development

centers for fragrances and flavors – is subject to expansive

laws and regulations.

SAP EHS Management automatically provides all the information and

documents employees need for their target markets, supporting users

in sales, product development, logistics, and customer service.

Key Benefits

Ability to develop and sell products in conformance with national and

international laws and customer requirements

Updates on rule and regulatory changes, based on current,

centralized data now available throughout the whole value chain

Automated process management, enabling product managers to focus

more time on highly productive activities like exception handling or

implementing new products

700 Users work directly with SAP EHS Management

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Best-Run Customers

ArcelorMittal

Givaudan Suisse

Dow Corning

Solvay

NOVA Chemicals

Why SAP?

Page 27: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

27 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

“We have completely transformed our data management practices and have

established sustainable systems and procedures to continuously improve our

environmental performance.”

Mark Lesky, Director of Responsible Care, NOVA Chemicals Corporation

NOVA Chemicals Corporation is a founding member of

Responsible Care, a voluntary global initiative under which

companies work to improve their environmental performance.

To improve emissions calculations and reporting, it implemented the SAP

Environment, Health, and Safety Management application. By pulling

emissions data into a single application for analysis and regulatory

reporting, the company has improved cycle times and the reliability of

emissions data and enhanced the ability to meet regulatory requirements.

Key Benefits

Dramatically improved cycle times and reporting frequency to support

more effective decision making and emissions-credit management

Reduced audit fees and time by establishing an audit trail for

emissions-related reports

Increased efficiency in data management, maintenance, and support

by capitalizing on existing internal SAP software infrastructure

Achieved payback in less than 2 years

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Best-Run Customers

ArcelorMittal

Givaudan Suisse

Dow Corning

Solvay

NOVA Chemicals

Why SAP?

Page 28: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

28 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

“By using an integrated SAP solution rather than a point solution for

REACH compliance, we could set up a very efficient system that ensures high

data integrity.”

Paul Vanhemelryck, REACH-IT Project Manager, Solvay S.A.

When Solvay S.A., a Belgium chemical and plastics firm,

needed to comply with new REACH (Registration, Evaluation,

Authorization, and Restriction of Chemicals) legislation, it

turned to SAP for help.

Given its extensive investment in SAP software for enterprise resource

planning, product safety, and supply chain management, Solvay didn’t

have to look far for a solution. For Solvay, SAP software for product and

REACH compliance – an upgrade to the SAP Environment, Health, and

Safety Management (SAP EHS Management) application – was clearly

the best choice.

Key Benefits

Revenue protection by enabling access to European markets

Fast, hassle-free auditing enabled by full traceability of communications

Simplified language handling through Unicode support

Ability to proactively detect supply chain disruptions and keep

regulators informed in real time

Reduced compliance costs and effort via automated processes and multisystem integration

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Best-Run Customers

ArcelorMittal

Givaudan Suisse

Dow Corning

Solvay

NOVA Chemicals

Why SAP?

Page 29: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

29 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

SAP solutions for sustainability help organizations innovate and grow with

confidence. The solutions integrate processes and leverage innovation so you

can effectively manage operational risks and operate efficiently.

Why SAP?

Proven Platform

Leading organizations across many industry segments rely on SAP solutions, regulatory content,

and expertise to innovate and grow confidently.

Integrated Processes

Solutions for sustainable operations from SAP are well integrated into core operational activities

and enable proactive risk management and product and environmental stewardship.

Innovative Technology

SAP solutions are developed and deployed on the industry’s most innovative technology platform.

The solutions take advantage of business network–based cloud processes to support supply chain

collaboration. Advanced mobile technology enables access to safety information from anywhere

and in-memory database technology supports real-time risk management.

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Best-Run Customers

ArcelorMittal

Givaudan Suisse

Dow Corning

Solvay

NOVA Chemicals

Why SAP?

Page 30: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

30 / 31 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Benchmark Your Performance

Position your organization for dominance in this new economy with the business performance

benchmarking program from SAP – available free to SAP customers and select prospects.

The SAP benchmarking program has helped more than 3,000 organizations assess their

strengths, uncover areas for improvement, and identify best practices and IT strategies that

generate clear, tangible value – not someday, but today.

Go Live in Weeks

Here’s the fastest way to run your business better: our rapid-deployment solutions. In one

package, you get everything you need to be up and running quickly – including preconfigured

software and implementation services – in just weeks. With a defined scope and predictable

costs, there are no surprises.

Join Your Community of Practices

Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work.

It lets members help one another solve problems, learn, and invent new ways to get things

done – faster. Find out how to connect with people, content, and resources.

Find Out More About How Your Organization Can

Become Best-Run

Visit valuemanagement.sap.com >>

Visit sap.com/solutions/rds >>

Visit scn.sap.com >>

Build a Strong

Foundation for

Growth

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Page 32: Sustainable Foundation for Profitable Growtha248.g.akamai.net/n/248/420835/8426e48f525da30a53f9f...responsible business processes to achieve operational excellence. They understand

© 2013 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission

of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other

software vendors. National product specifications may vary.

These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only,

without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to

the materials. The only warranties for SAP Group 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.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered

trademarks of SAP AG in Germany and other countries.

Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information

and notices.