Delivering Real-Time Business Value for Industrial Machinery and Components

July 2013

Delivering Real-Time Business Value for

Industrial Machinery and Components SAP Business Suite Powered by SAP HANA

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2 Public

The real-time opportunity

To remain competitive, industrial machinery and

components manufacturers must reduce sales cycle

times for products and services, minimize time to

profit for new projects, and decrease supply chain

costs.

Innovate, optimize, and sell solutions tailored for your

customers

Speed your supply chain and reduce costs

Achieve market differentiation via superior customer service


Becoming an innovation-driven enterprise Aligning business operations with customer needs

Innovate,

optimize, and

sell solutions

tailored

for your

customers

Instant analysis of customer behavior and market trends

Tailored solutions for your customer accessing real-time

detailed data

Complete customer insight in real time

Speed your

supply

chain and

reduce costs

Real-time response to shifts in demand and supply

Real-time visibility across entire supply chain and

system landscape

Real-time “what-if” analysis and simulation

Achieve market

differentiation

via superior

customer

service

Increased uptime and best-in-class service-level

agreements

Better service through real-time equipment, asset, and

maintenance predictive analytics

Reduced service cost through maintenance budget

planning


SAP Business Suite powered by SAP HANA The next-generation business platform

Real-time business

In-memory

Business

transactions

Digital

connections

Collaborative

business

Cloud Social

Big Data Mobile

One platform bringing it all together

Advanced

analytics


Industrial machinery and components (IM&C) value map Powering a solution provider network

R & D/Engineering

Integrated Product

Development

Continuous Product and

Service Innovation

Embedded Compliance in

Product Development

Aftermarket Service

End-to-End Service

Management

Advanced Contract Management and

Service-Centric Billing

Service Parts

Management

Dealer Management

Manufacturing

Engineer-to-Order and

Project Manufacturing

Make-to-Order

Manufacturing

Outsourced Manufacturing

Supply Chain

Sales and Operations

Business Planning

Demand Driven

Supply Chain

Logistics and Order

Fulfillment

Sales

Collaborative Sales Force

Automation

Sales of Configurable

Products and Solutions

Multichannel

Management

Adaptive Pricing and

Usage Based Billing

People and

Talent

Core Human Resources

and Payroll Talent Management

Time and Attendance

Management

Workforce Planning and

Analytics

Finance Financial Performance

Management

Accounting and

Financial Close

Treasury and Financial

Risk Management

Collaborative Finance

Operations

Enterprise Risk and Compliance Management

Procurement Supplier Discovery and

Lifecycle Management

Strategic Sourcing and

Contracting

Procurement and Order

Collaboration

Collaborative Invoice to

Pay

Commodity

Management

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management IT Service Management

IT Strategy and

Governance

Commercial Project

Management

3D Business Visualization

Asset Operations and

Maintenance

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

The SAP HANA Platform

Application

Development

and Integration

Quality Management

and Compliance


Industrial machinery and components value map Focus areas for SAP Business Suite on SAP HANA

R & D/Engineering

Integrated Product

Development

Continuous Product and

Service Innovation

Embedded Compliance in

Product Development

Aftermarket Service

End-to-End Service

Management

Service Parts

Management

Dealer Management

Manufacturing

Engineer-to-Order and

Project Manufacturing

Make-to-Order

Manufacturing

Outsourced Manufacturing

Supply Chain

Sales and Operations

Business Planning

Demand-Driven

Supply Chain

Logistics and Order

Fulfillment

Sales

Collaborative Sales Force

Automation

Sales of Configurable

Products and Solutions

Multichannel

Management

Adaptive Pricing and

Usage Based Billing

People and

Talent

Core Human Resources

and Payroll Talent Management

Time and Attendance

Management

Workforce Planning and

Analytics

Finance Financial Performance

Management

Accounting and

Financial Close

Treasury and Financial

Risk Management

Collaborative Finance

Operations

Procurement Supplier Discovery and

Lifecycle Management

Strategic Sourcing and

Contracting

Procurement and Order

Collaboration

Collaborative Invoice to

Pay

Commodity

Management

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management IT Service Management

IT Strategy and

Governance

Commercial Project

Management

3D Business Visualization

Asset Operations and

Maintenance

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

The SAP HANA Platform

Application

Development

and Integration

Quality Management

and Compliance

Highest value

for IM&C

4

3 2 1

6 5

7

Advanced Contract Management and

Service-Centric Billing

Enterprise Risk and Compliance Management


Today With SAP Business Suite on

SAP HANA

KPI improvements are high-level estimates and will have to be validated for each customer situation.

Make-to-order manufacturing Business value for material requirements planning (MRP)

MRP batch jobs cannot run within the

available overnight batch job window

It’s not possible to process and ship

orders in the same day because the

overnight MRP run is required to

create supply orders

Sales orders for complex orders

cannot be confirmed to the customer

in an acceptable amount of time

40%–60% reduction in MRP runtime,

helping ensure that batch jobs

complete in time

Ability to execute MRP run more

frequently (such as during the day) to

allow same-day orders to be

produced and shipped

Ability to execute MRP run more

frequently (such as during the day) to

allow complex orders to be confirmed

more quickly, providing a competitive

differentiator

Reduce out-of-stocks by

5%

Decrease

Limit

inventory and

safety stocks by

4%

lost customer

orders due to slow

order processing



SAP HANA


Demand-driven supply chain Business value for supply chain monitoring

Casual business users have difficulty

viewing and analyzing the demand

plan

There is no ad hoc operational

reporting

Data loads in traditional reporting

tools are time-consuming

No ready-made reports exist for

analyzing forecast accuracy

Analyzing supply chain management

(SCM) master and transaction data

in combination with enterprise

resource planning (ERP) data is

difficult

Business users able to view a near

real-time version of the demand and

supply plan via various intuitive user

interface (UI) tools (including mobile

devices)

Ready-made analytical reporting

possible with streamlined data load

Predefined dashboards for different

use cases (analytical workflows)

including forecast accuracy

Ability to store SCM and ERP data

on a single SAP HANA platform; can

be readily combined/analyzed using

via a common UI

Reduce supply chain

costs by

3%

Optimize

Increase

inventory levels by

7%

customer service

level by

4%



SAP HANA


Sales of configurable products and solutions (1/2) Business value for sales

Distinguishing profitable customers

from customer pool is difficult

There is no ability to identify gaps in

sales pipeline leading to missed

targets

Extracting actionable information from enterprise-wide customer information (Big Data) to maximize the chance of a sale is time-consuming

Minimal insight exists into buying preferences of customers in social data context

Ready identification of profitable

customers with account intelligence

analytics

Faster transaction search

functionality

Complete transparency into sales

pipeline based on real-time information

with unlimited drill-down ability

Optimized sales territories enabled by

simulating large volumes of territory

data for adequate coverage

Real-time analysis of Big Data to

better understand buying patterns

Real-time access and assembly of all

data including social/sales data

Increase profitability by

2%

Decrease

Improve

cost of sales through

balanced territories by

4%

offer win rate



SAP HANA


Sales of configurable products and solutions (2/2) Business value for SAP Business Suite on SAP HANA

Analyzing sale of configurable

products at right level of detail is

time-consuming or impossible

There is no ability to analyze

nonselling options and option

combinations

Analyzing booking and backlog

information for make-to-order

products is difficult

Saving large, complex sales orders

takes a significant amount of time

Easier to identify option combinations

that are frequently sold and adjust

supply chain delivery programs

Analysis of historical demand for

options with subsecond response

time

Real-time visibility to entire order to

cash value stream at any level of

detail/aggregation

Easier identification and ability to

intelligent react to period-end

revenue shortfalls

Increased user productivity and

satisfaction by significantly reducing

time required to save complex orders

Reduce time required to

analyze sales of

configurable

products from days

to seconds

Minimize

Increase

revenue guidance

misses

user productivity

Note: Additional license materials or customer-specific project work may be required to realize this business scenario.



SAP HANA


Integrated product development (1/2) Business value for project management (portfolio and project management)

Project members experience long

waiting times when starting the

project and task dashboards

Updates on multiple tasks are

inefficient and time-consuming

because project team members

confirm tasks one by one to reduce

waiting times

Searching for documents across

projects takes a very long time for a

large portfolio of projects

The process of finding projects,

tasks, and phases by responsible

project member is slow

Faster access to user tasks and

projects

Accelerated access to project, task,

and checklist item dashboards

Project team members able to

confirm times, status, and dates and

attach documents for several tasks

at once

Increased user productivity

Accelerated search for documents

Faster ability to find projects or tasks

by responsible project member

Increase user productivity

20%

Reduce

Improve

time for task

confirmation

35%

Search for

documents and

project elements

35%



SAP HANA


Integrated product development (2/2) Business value for SAP Business Suite on SAP HANA

Analysis and progress monitoring of

product development and

engineering change (ECN) projects

is time-consuming

Analyzing the cost impact of

engineering changes is difficult

It is hard to determine when changes

should be effected.

It is time-consuming and tedious for

engineers to search for and select

suitable parts/components during

design

Improved query performance for

portfolio and project management

that dramatically reduces time and

effort required to analyze projects

Intuitive access to large volumes of

purchasing and planning data,

allowing engineers to easily

determine when changes should be

effected

Real-time text string search and

classification search allowing casual

users to easily find materials (and

metadata) with desired attributes,

thus reducing likelihood that a

duplicate part is created

Increase efficiency in working

with large projects

Reduce

Reduce

cost impact of

engineering

changes

frequency of

duplicate part

creation




SAP HANA


End-to-end service management Business value for SAP Business Suite on SAP HANA

It’s difficult to analyze large volumes

of equipment service and failure data

to identify patterns of product failure

There is need to combine real-time

information from the field and

connected assets with statistical

analysis of historical data to allow

smarter decisions

There is no ability to systematically

analyze unstructured text data (such

as from a sales technician field

report) and combine with ERP or

sensor data

Ability to perform complex causal

analysis on equipment service and

failure data to enable proactive

maintenance

Predictive analysis on sensor data

from connected assets

Early information about potential

product failures

New business models leveraging

machine data from sold devices

Ability to use sentiment analysis of

unstructured text data to identity

failure patterns

Combination of ERP service data

with sensor data to enable predictive

service

Improve service-level

compliance

Create

Increase

new service

offerings

customer intimacy




SAP HANA


Engineer-to-order and project manufacturing Business value for project management (project systems)

Cross-project or program monitoring

is challenging due to high data

volumes

Deviations in costs, time, resources,

or quality are seen too late in the

process

There is no ability to monitor and

analyze all aspects of large projects

simultaneously and drill down into

relevant details

Improved employee productivity and

project profitability

Complete visibility across projects

Early insight in deviations and risks

enabling timely corrective measures

by alerting and highlighting

deviations in real time

Modern, easy-to-consume UI

Real-time insight and easier-to-

manipulate information

Complete progress monitoring along

the project lifecycle

Accelerated determination of

exceptions and

potential future

deviations

Improved

Reduced

decision support

to take appropriate

corrective

measures in time

project failure rate



SAP HANA


Accounting and financial close Business value for entity financial close

The process is long-running with multiple steps to complete

Limited transparency precludes ability to manage central financial close

High numbers of involved systems and people require many handovers and reconciliations

Missing financial excellence results in

a higher cost of equity at the capital

market.

Lack of governance results in issues in ensuring a sound end-to-end closing process and effectiveness of internal controls

It is difficult to support parallel financial reporting standards and simulate scenarios

Automatic reconciliation with

automated real-time matching

Single repository for company and

corporate data

Common view across financials and

logistics

Comprehensive simulation of org

changes and alternate accounting

methods

Deeper and faster insight down to the lowest level of detail – delivering quality at source, transparency, process efficiencies

Common view across financials and logistics – faster reconciliation and drill-through

Eliminate period-end surprises

Reduce

Enhance

month-end closing

time by

44%

compliance and

accuracy


Customer cases

Japanese

technology firm

• SAP Business Suite and other applications

powered by SAP HANA

• Automated reporting

• Inventory optimization

• Predictive analytics

• Inventory visibility

European

technology firm

• SAP Business Suite on SAP HANA

• Real-time inventory

• Real-time material planning

• Marketing and sales

• Fast financial close

Leading U.S.

technology firm

• SAP HANA platform and SAP Business

Suite on SAP HANA

• Variable margin analysis

• Customer service excellence

• Opportunity order analysis

• Predictive analytics

• Supplier network traceability

• Predictive scoring

Benefit over 5

years

US$25 million

Annual benefit

€85 million

5-year net value

US$152 million


Next step Business scenario recommendation and value discovery workshop

SAP offers a proven methodology and approach to

discover customer-specific business improvement

areas and quantify value potential.

We suggest such a workshop with your

line-of-business and IT experts.

As a starting point, we recommend a performance

and usage analysis of your current system.

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

Thank you

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

Appendix with detailed customer cases


Breaking the limits at Würth

We have a slogan at Würth – it is: break your limits. That means that we always want

to get better and better every day. The key value for the business is speeding up key

processes such as MRP, order entry, and invoice management.

Harald Holl, responsible for it infrastructure and data centers at Würth

AT A GLANCE

Objective

Proof of concept

Solution

SAP ERP powered by SAP HANA

Benefits

Accelerate key processes (MRP, order entry, invoicing)

and reduce total cost of ownership (TCO)

Watch the video here

http://www.wuerth.com/web/en/wuerthcom/index.php

http://smartdirectory.sap.corp:3080/Assets/asset.epx?id=be03331a-d71d-4b45-8cc5-2f6c0763d97b


Varian Medical Systems SAP Business Suite on SAP HANA

Accelerate revenue forecasting

process

60x

Reduce

Reduce

time required for finan-

cial close (planned)

<1 day

time required to save

complex sales orders

(planned)

Business challenges

Monthly revenue forecasting process is a “major pain point” as it takes 3–5 hours to

run and often has to be run several times to remove errors

Saving a sales order takes too long (“user gets a cup of coffee while waiting”)

Financial close takes too long (currently 5 days)

Technical challenges

Integrate complex sales orders with project systems

Utilize complex user exit logic in sales order to create “mirror image” project systems

work breakdown structure (WBS) element for each sales order line item

Benefits

Improve accuracy and timeliness of revenue forecast provided to Wall Street by

reducing time required for revenue forecasting process from 3–5 hours to 3–4 minutes

Hope to shorten the time required for financial close below the current 5 days

Plan to reduce the time required to save a sales order to increase user productivity

and satisfaction

Note: All information and figures were taken from Tom Rodden (director of applications at Varian Medical)

roundtable discussion at SAPPHIRE NOW in 2013.

http://www.sap.com/asset/index.epx?id=f988ae3d-7371-4df8-b01f-d639495fc3f3&name=Enable-the-Real-Time-Enterprise-for-Discrete-Manufacturers&_=1368706070058




SPIRIT Aerosystems SAP Business Suite on SAP HANA

Accelerate Key finance report

7,000x

Reduce

Reduce WIP

Production cycle time

30%

40%

Business challenges

Timely information is lacking for “orders behind schedule” on the shop floor

Key finance report takes too long to run

Financial close takes too long


Huge amount of data from the shop floor systems

Transaction system (SAP ERP application) is good, but leaders don’t have the

access to the information they need

Benefits

Possibly save hundreds of millions of dollars by better utilizing existing production

assets

Improve production throughput by increasing visibility to leaders on the shop floor

Free up working capital by reducing work in process (WIP)

“We can save hundreds of millions of dollars by not investing in capital and moving

more product through the factory . . . the SAP HANA tool gives us the opportunity to

avoid additional capital expenditures.” James Cocca, CIO, Spirit Aerosystems

Note: All information and figures were taken from James Cocca (CIO, Spirit Aerosystems)

roundtable discussion at SAPPHIRE NOW in 2013.




https://blogs.wdf.sap.corp/sapnews_en/files/2013/05/spirit-aerosystems-logo_2A100.jpg


Kennametal: Drilling deeper and faster for

business insight with SAP HANA


Vaillant Group: Heating Up with Improved Products and

Better Service Using SAP HANA

Executive overview


Hilti AG Faster reporting and analytics

Product: SAP NetWeaver Business Warehouse (SAP NetWeaver BW)

application powered by SAP HANA

Business challenges

Need for (near) real-time, flexible, agile, anywhere access on any device

Call for simplification through visualization, participation via self-services


Ubiquity of data and consumerization of IT

Need for “people-driven” reporting within global standards

Higher latency time that killed information value

Replacing back-office sync

Benefits

Provides analytical flexibility and agility for regional and national initiatives within a

global standard reporting system with improved performance

Simplifies SAP NetWeaver BW architecture (CO-PA) with direct impact on support

effort and agility

Enables successful of implementation of previously unthinkable Big Data scenarios

Enables simulation and forecast scenarios, which have been impossible before

Opens the door for sustainability and business transformation

1,000x faster reporting –

from 77 minutes to

13 seconds

60%

4–10x

improvement in

data load time

faster DataStore

object (DSO)

activation

2-second latency time: real-

time replication

(SAP Landscape

Transformation

replication server)


Customer case: Japanese technology firm Summary of validated scenarios

Feasibility

Bu

sin

ess v

alu

e

Legend

Lo

w

Hig

h

Low High

SAP Business

Suite on SAP

HANA

SAP HANA

products

SAP HANA

platform

Phase – deployment road map Annual revenue: US$2.0 billion

SAP HANA platform: customer-specific

SAP HANA products: SAP NetWeaver BW on SAP

HANA, high-performance applications (HPAs), apps

powered by SAP HANA

SAP Business Suite on SAP HANA

Scenario

(business value)

Allocation

optimization

(NA)

Predictive analytics

(US$108,000)

Automated

reporting

(US$1.2 million)

Inventory

optimization

(US$5.7 million)

Inventory visibility

(US$672,000)

1 Short term

SCM: Inventory optimization: reduce inventory

carrying costs, inventory obsolescence

Inventory visibility: cut down the days in

inventory – one-time benefit

Allocation optimization: reduced cycle time,

improved alignment to market dynamics, lower

business risk, ability to adept to future business

requirements such as channel inventory

2 Medium term

SCM: Automated reporting: improve productivity

supply chain planning

Predictive analytics: revenue leakage due to

stock-outs – % of revenue

3 In evaluation

Other functions – to be determined (TBD) in

future discovery workshops

SAP HANA use cases mapped to industry value map end-to-end solutions


Customer case: Japanese technology firm SAP HANA platform

Actual SAP customer

business case

Annual benefits, SAP HANA

platform

Annual benefits, applications

powered by SAP HANA

Annual benefits, SAP Business Suite

on SAP HANA: US$7.16 million

Estimated deployment costs

Total transition cost: US$5 million

$

-4.468

-627

5860 5860

1300 80

-6.000

-4.000

-2.000

0

2.000

4.000

6.000

8.000

2013 Phase 1 Phase 2

Costs SoH Applications Platform

Results over 5 years – SAP Business

Suite on SAP HANA only

Surplus US$25 million

ROI 500 %*

Payback period 12 months*

* To be validated

SoH = SAP Business Suite on SAP HANA

SAP HANA Platform: Anything built on the platform that is customer-specific – new business processes and business models

SAP HANA products: SAP NetWeaver BW powered by SAP HANA; high-performance apps (HPAs); applications – mapped to

inventory value map (IVM) end-to-end (E2E) solutions

Currently available functionality (SP0, 1, 2) – 23 scenarios mapped to IVM E2E solutions, and planned functionality(all of the

E2E solutions on the IVM are in scope)

SAP HANA Platform

SAP HANA products



Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation

sessions and may not be completely validated.

An electronics manufacturer – predictive analytics High tech

Business context and goals

This electronics manufacturer can increase revenue by reducing its out-of stock products in the

stores. Improved supply chain planning based on predictive modeling will lead to improved

allocation of goods and a better alignment with manufacturing.

Business challenges

Current data warehouse with historic sales data and stock inventory is updated by offline manual

batch processes and prevents the planning team from performing real-time analysis.

Process innovations

Near real-time simulation of marketing forecasting

Contribution of SAP HANA

SAP HANA boosts the performance of SAP NetWeaver BW, helping to overcome many of

today’s limitations on forecasting.

Value drivers/KPIs

Revenue leakage due to stock-outs (% of revenue)

Innovation scope

SAP HANA products (HPAs, apps)

E2E solution

High tech – integrated sales and


Value potential 2

Feasibility 4

Low High

1 5

Low High

1 5




An electronics manufacturer – automated reporting High tech


This manufacturer can improve the productivity of the supply chain planning team by automating

reports and need for decision-making data based on real time SKU-level reporting. This reduces

need for manual consolidation of spreadsheets.

Business challenges

Planning team is currently looking at sales data and stock inventory that is a few days old

because of the manual steps to create the reports. This increases the amount of work and

negatively impacts the quality of decisions.

Process innovations

Improved productivity of marketing forecasting


SAP NetWeaver BW powered by SAP HANA provides instant and automated reports to the

planning team.

Value drivers/KPIs

Improve productivity supply chain planning

Innovation scope


E2E solution



Value potential 3

Feasibility 4

Low High

1 5

Low High

1 5




An electronics manufacturer – inventory optimization High tech


Due to limitations on SKU-level reporting on inventory, the company is suboptimally allocating

products and keeps higher safety stocks than necessary. It seeks improved supply chain

planning based on predictive modeling on SKU level.

Business challenges

Due to slow queries and data accuracy issues, the planning team is not able to perform analysis

and predictive modeling on SKU level.

Process innovations

Near real-time visibility on inventory in all channels


SAP NetWeaver BW powered by SAP HANA provides SKU-level reports to improve inventory

management.

Value drivers/KPIs

Reduce inventory carrying costs, reduce inventory obsolescence costs

Innovation scope


E2E solution



Value potential 5

Feasibility 3

Low High

1 5

Low High

1 5


Customer case: European technology firm Summary of validated scenarios

Feasibility

Bu

sin

ess v

alu

e

Legend

Lo

w

Hig

h

Low High

SAP Business

Suite on SAP

HANA

SAP HANA

products

SAP HANA

platform

Phase – deployment road map

Annual revenue: €5.9 billion


SAP HANA products: SAP NetWeaver BW on SAP

HANA, HPAs, apps powered by SAP HANA


Scenario

(business value)

1 Short term

CRM: Marketing and sales: average annual fund

overspend (in %); trade spending as a % of

revenue; % of qualified leads closed annually;

% of sales transactions where cross-sell/ up-sell

is offered

SCM: Real-time inventory: inventory carrying cost

(% of revenue); overall supply chain planning

cost (% of revenue); revenue loss due to stock-

outs (in %)

2 Medium term

SCM: Automated reporting: improve productivity

supply chain planning)

Predictive analytics (revenue leakage due to

stock-outs (% of revenue)

FIN: Fast financial close: % effort on working with

audit related data (finance); audit cost as a % of

revenue; days to close annual books (in days)

3 In evaluation

Other functions – to be determined in future

discovery workshops

Real-time material

planning

(€8 million)

Real-time inventory

(€12 million)

Fast financial close

(€5.7 million)

Marketing and

sales

(€55 million)

SAP HANA use cases mapped to industry value map end-to-end solutions


Customer case: European technology firm SAP HANA platform

76400 85900

80

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2013 Phase 1 Phase 2

Costs SoH Applications Platform

€


platform


powered by SAP HANA

Annual benefits, SAP Business

Suite on SAP HANA: €86 million

Estimated deployment costs Total transition cost: to be determined

More information: Sander Kapper


Based on actual SAP

customer engagements






SAP HANA Platform

SAP HANA products



1 Short term

Finance: Fast financial close

(variable margin analysis)

Sales: Insight-driven sales

(opportunity order analysis)

Marketing: Insight-driven marketing

(predictive scoring - real-time segmentation,

campaign optimization, and affinity analysis)

Service: Insight-driven service

(customer service excellence – mine service

data proactively)

Sourcing: Supplier network traceability

(strategic purchase optimization)

3 In evaluation

Other functions – to be determined in future

discovery workshops

Customer case: Leading U.S. technology firm, high tech Summary of validated scenarios

Feasibility

Bu

sin

ess v

alu

e

Lo

w

Hig

h

Low High

Variable margin

analysis

(US$45 million)

Predictive scoring

(US$15 million)

Annual revenue: US$6.2 billion

Opportunity order

analysis

(US$15 million)

Customer service

excellence

(US$37 million)

Supplier network

traceability

(US$13 million)

Legend

SAP Business

Suite on SAP

HANA

SAP HANA

products

SAP HANA

platform

Predictive

analytics

(US$108,000)


SAP HANA products: SAP NetWeaver BW on SAP HANA,

HPAs, apps powered by SAP HANA


Scenario

(business value)

SAP HANA use cases mapped to industry value map end-to-end solutions Phase – deployment road map


Customer case: Benefit quantification SAP HANA platform

-63

-10

45

0

80

-100

-50

0

50

100

150

2013 Phase 1

Costs SoH Applications PlatformEXAMPLE

Indicative example

Results over 5 years – SoH only

Surplus US$152 million

ROI 100 %*

Amortization 2 years*

* to be validated


platform: US$80 million


powered by SAP HANA

Annual benefits, SAP Business Suite

on SAP HANA: US$45 million

Estimated deployment costs

Total transition cost: US$73 million

More information: Eric Gandhi


$






SAP HANA Platform

SAP HANA products





A component manufacturer – real-time pricing and margin analysis Industrial machinery and components


Sales teams need real-time pricing and margin analysis at point of sale to respond to fast

changing commodity prices and competitor price movements.

Business challenges

Respond in real time to fast-changing commodity prices and competitor price movements.

Process innovations

Real-time analysis of the impact of commodity price changes and competitor price movements

on sales margin and discount offering – required to support telephone and Web-based sales.


SAP HANA enables real-time analysis of pricing data and assessment of sales margin.

Value drivers/KPIs

Reduce average discount on sales transactions; optimize the product portfolio; enable cross-

selling/up-selling; improve productivity of pricing management FTEs; improve productivity of IT

FTEs in extracting and reporting on data

Innovation scope


E2E solution

Industrial machinery and components –

collaborative sales force automation

Value potential 5

Feasibility 4

Low High

1 5

Low High

1 5

Delivering Real-Time Business Value for Industrial Machinery and Components

Technology

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