How SAP S/4HANA supports the Digitization of LoB R&D · PDF fileHow SAP S/4HANA supports the...

Live EngineeringHow SAP S/4HANA supports the Digitization of LoB R&DJohann Dornbach, SAPFebruary 8, 2016

Customer

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Customer

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The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission ofSAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP.SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop orrelease any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible futuredevelopments, products and or platforms directions and functionality are all subject to change and may be changed by SAP atany time for any reason without notice. The information in this document is not a commitment, promise or legal obligation todeliver any material, code or functionality. This document is provided without 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.This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility forerrors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materiallyfrom expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak onlyas of their dates, and they should not be relied upon in making purchasing decisions.


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Chart about ho many companies have adigitization strategy

„If you went to bed last night as anindustrial company, you‘re going to wake up thismorning as a software and analytics company.“Jeff Immelt, CEO of GE, Minds+Machines Summit 2014


Products Life Cycle Services


Companies will sell Services rather than Products in the Future


The Challenge: Isolated IoT Sensor Communications and Analysis

IdeaManagement

Research &Development

Service &Field

OperationsManufacturing

Sensor Feedback LoopManufacturing Operations

Design

Customers

Social

Internal

Technology

Markets

Sensor Feedback LoopService Operations


Product: Ø Mechanical – Electrical – Software

Ø Services delivered through the product

Ø Economic performance

Lifecycle: Ø Until decomissioning at customer site

Ø Closed Loop – True PLM

Management: Ø Jointly with customers

Ø Partners – even competitors© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Customer

Let’s extend our understanding of Product Lifecycle Management


„Digital Twin“ for Business

The physical world

The digital world

Companies need tomaintain a detailed

understanding abouttheir products throughout

the entire life cycle:

Ø As designed, Portfolio and Costs

Ø As Configured, Cost and Plan

Ø As built. Cost to build

Ø As maintained. In Situ Updates

Ø Change in the Field



True Product Lifecycle Management

The physical world

The digital worldEngineeringEngineering ProductionProduction InstallationInstallation OperationOperation DecommissionDecommission

Production Data

Quality Fingerprint

…

Ramp Up / Start Up

…

Ideas

Designs

Geometries

Stress Simulations

Cost

…

Output

Performance

Issues

Cost

Profitability

…

…

As Designed As Built As Delivered As Maintained

True PLM builds on theDigitalization of ManufacturingCompanies and their Strategic

Priorities.


R&DR&D Sales & MarketingSales & Marketing ManufacturingManufacturing AftermarketService

AftermarketServiceSupply ChainSupply Chain

ProcurementProcurement FinanceFinance Human ResourcesHuman Resources

Digital Core

Strategic Priorities:

SmartProducts

Track &Trace

ConnectedLogistics

Usage based Billing

Configure,Price, Quote Connected

Manufacturing

EnergyManagement

PredictiveQuality

New Business Scenarios

Remote ServiceManagement

PredictiveMaintenance

AugmentedReality Apps

ü Rethinking the wholebusiness from the endcustomer’s perspective.

1. Customer centricity

ü Flexible reaction tochanges in demand,supply and resources

4. Digital supply chain & smart factory

ü Aftersales Serviceü Value add servicesü Usage based charging

5. Servitization & new businessmodels

ü Intelligentü Self-aware

3. Digital smart products

ü Configurabilityü Adaptabilityü Personalization

2. Serving the “Segment of One”

Digitalization for Manufacturing CompaniesValue creation through deep process and data integration

Let‘s look at these strategicpriorities in more detail.


Customer CentricityRethinking the whole business from the end customer’s perspective


Customer CentricityNeeds and implications for R&D

Customer Examples

Needs• Customer Co-

Innovation• Product innovations

resulting from actualequipment usage andincident reports

• Structuredrequirements collectionbased on customerand design partnerinteractions

Business Benefits• 10 to 20% reduction of

manual rework inmanufacturing

• 5 to 20% reduction ofefforts to define andrelease individualizedand market-specificproduct variants*

SAP Capabilities• Project and Design

Network (Planned)• Asset Intelligence

Network• Requirements

Management• Variant Configuration

integrated along thevalue chain fromEngineering throughManufacturing to Sales


Serving the “Segment Of One”Configurability, Adaptability and Personalization


Serving the “Segment Of One”Needs and implications for R&D

Customer Examples

Needs• Modularized product

concepts and wellstructured productfamilies

• Platform models crossproduct families

• Selected ETOcapabilities duringsales configurationprocess

Business Benefits• 10 to 30% faster

design process forsmart product offerings

• 10 to 40%• Improvement in

accuracy ofengineering changes

SAP Capabilities• Engineering BoM• Manufacturing BoM• Variant Configuration

integrated along thevalue chain fromEngineering throughManufacturing to Sales

• Authoring ToolIntegrations (CAD,ECAD, etc.)

• Visual Enterprise


Digital Smart ProductsIntelligent and self-aware


Digital Smart ProductsNeeds and implications for R&D

Customer Examples

Needs• Systems engineering

approach (incl.mechanical, software,electronic, etc.)

• Embeddedtechnologiesfoundation forequipment networks

Business Benefits• 5 to 14% faster time to

market for newproducts

• 10 to 30% lower R&Dcosts

SAP Capabilities• Systems Engineering

(Planned)• Requirements

Management• Engineering Control

Center – AuthoringTool integrations

• Engineering BoM• Change Management• Asset Intelligence

Network


Digital Supply Chain & Smart FactoryFlexible reaction to changes in demand, supply and resources


Digital Supply Chain & Smart FactoryNeeds and implications for R&D

Customer Examples

Needs• Integrated

manufacturingengineering with eBoMand mBoMmanagement

• Digitally visualizedmanufacturingprocesses based onharmonized productdata

Business Benefits• 10 to 55% faster time

to market

SAP Capabilities• Visual Manufacturing

Planner• Product Structure

Synchronization• Visual Enterprise

integrated along thevalue chain fromEngineering throughManufacturing toService


Servitization & New Business ModelsValue add services and outcome based charging


Servitization & New Business ModelsNeeds and implications for R&D

Customer Examples

Needs• Life-Cycle cost

calculation capabilities• Software solutions

calculating actualequipment usage

• Data platforms offeringdigital services

• Equipment informationsharing along the valuechain

Business Benefits• New products revenue:

+ 10-20%• R&D cost: - 20-30%• Prod. meet. rev.

targets: + 15-20%

SAP Capabilities• Product Lifecycle

Costing• Asset Intelligence

Network


How SAP helps the Head of R&DTop 5 strategic initiatives of Manufacturing companies

Strategic Priorities Required Capabilities§Customer Co-Innovation§Product innovations resulting from actualequipment usage and incident reports§Structured requirements collection based oncustomer and design partner interactions

§Modularized product concepts and wellstructured product families§Platform models cross product families§Selected ETO capabilities during salesconfiguration process

§Systems engineering approach (incl.mechanical, software, electronic, etc.)§Embedded technologies foundation forequipment networks

§ Integrated manufacturing engineering witheBoM and mBoM management§Digitally visualized manufacturing processesbased on harmonized product data

§Software solutions calculating actualequipment usage§Data platforms offering digital services§Equipment information sharing along thevalue chain

ü Rethinking the wholebusiness from the endcustomer’s perspective.

1. Customer centricity

ü Flexible reaction tochanges in demand,supply and resources

4. Digital supply chain & smart factory

ü Aftersales Serviceü Value add servicesü Usage based charging

5. Servitization & new business models

ü Intelligentü Self-aware

3. Digital smart products

ü Configurabilityü Adaptabilityü Personalization

2. Serving the “Segment of One”

Examples S/4 HANA R&D

Suite

Prod

ucts

Ente

rpris

eM

anag

emen

t

§Enterprise Portfolio and ProjectMgmt.§Commercial Project Mgmt.§Compliant Product Lifecycle Mgmt.

§Product Development and ProjectControl§Production Engineering§Variant Configuration§Embedded SW Mangement

§Engineering Control Center§Product Lifecycle Costing§Constrain Management§Portfolio and Project Management§Commercial Project Mgmt.§ Innovation Management§Cloud for Product Stewardship

SAP Point of View


Is your business ready for the Digital Transformation?Disconnected Value Chains and Multiple Solution Models


SAP Point of ViewFrom Sequential Steps to Collaborative Networks


Sales ConfiguratorManufacturing BOM

Engineering BOMAs-built/As-maintained BOM

Purchased parts listWorking together seamlessly.

SAP Point of ViewSeamless Collaboration on One Common Solution Model


Connecting Things with People and Processes

Industryview

Line ofBusiness

view

SAPLeonardoPortfolio

Technologyview

SAP Leonardo(“Things” View)

• Connected Products• Connected Assets• Connected Fleet• Connected Infrastructure• Connected Markets• Connected People

LoB Digital Supply Chain(Business Process View)

• Digital Business Planning• Digital Response & Supply• Digital Logistics• Digital Product Innovation• Digital Manufacturing• Digital Operations


SAP Leonardo Innovation Portfolio

SAP LeonardoEdge SAP HANA Cloud Platform / SAP HANA platform

SAP Leonardo Foundation

SAP Leonardo Bridge

Connected

ProductsConnected

AssetsConnected

PeopleConnected

Fleet

Product Insights

Goods & Equipment

Supply Networks

Fixed Asset Insights

Manufacturing Execution

Manufacturing Networks

Mobile Asset Insights

Logistics Safety

Logistics Networks

Building Insights

Construction

Energy Grids

Market Insights

Rural Areas

Urban Areas

Work

Health & Sports

Homes

Connected

InfrastructureConnected

Markets


Live Engineering - Powered by SAP Leonardo

IdeaManagement

Research &Development

Service &Field

OperationsManufacturing

Customers

Social

Internal

Technology

Markets Connected ProductsSensor Feedback Loop

Design

SAPLeonardo

Edge SAP HANA Cloud Platform / SAP HANA platform

SAP Leonardo Foundation

Planned Highlights for R&D inS/4HANA


Highlights:§ Collaborate and Share Document Info record

Content via Document Center and DMSintegration.

§ Search and Maintain Document Info records withnew FIORI app for Maintain Document.

§ Simple interface to handle attachmentssupporting GOS/DIR and URL as attachments.

§ Integration into external Content ManagementSystems like OpenText via open Interfacestandards (CMIS)

Document Management in S/4HANASolution Overview

AttachURLs

Attach/Modify files

Link DIR toOther

ObjectsMaintain

Status

Create /Search

DocumentInfo record

Collaborate Documents via Document Center

PlannedLab Preview


SAP’s Content Management Direction for the CloudTarget Architecture VisionHighlights§ Leverage Consistency across cloud applications with Open Standard CMIS (Content Management Interoperability Services ) to integrate

with Content Management Systems§ Open Strategy & Interface to give the Customer the choice for a Content Management Solution ( SAP Standard, OpenText, other Partner )

PlannedLab Preview


Simplified BOMIntegration Scenario

Highlights:§ Efficient and customizable bill of material search via

filters and key fields.§ BOM draft feature to enable tentative decisions and

changes. Changes can be either saved or discarded.§ Provision of a change timeline which allows navigation to

different change instances from application itself.§ Functionality to create and assign change number from

the overview page.§ The application also incorporates attachment services.

The attachment service is a reusable UI component thatallows the users to attach documents and files to anybusiness object.

Useattachmentservices to

attachrelevant

documents

Edit BOMsand save

drafts.Discard or

save changeslater.

Create NewAlternatives

Use changenumbers to

createchanged

BOMinstances

Find Bill ofMaterial

PlannedLab Preview


Highlights:§ Efficient collaboration via connected change processes

across departments.§ Controlled change risks via joint decision based on workflow.§ Single source of truth, centralized change data of scopes,

processes, and task owners.§ Flexibility to support all kinds of changes.§ Quickly pinpointing change impacts.

Change Record ApplicationsSolution overview

PlannedLab Preview


Seamless integration:“One Configuration Model”

Manufacturing ServiceSales

Engineering Supply Chain Asset Mgt.

S/4HANADigital Core

Configure, Price,Quote (CPQ)

Product LifecycleManagement

Planned

Highlights:§ Mobile-first, 3D-first User Experience

§ Micro-service-based cloud engine for flexible processes

§ Sales can flexibly enrich options and values

§ Seamless integration: One Configuration Model

§ Focus on S/4HANA-related roles

§ Fully integrated into all VC-related business processes

§ Leverages SAP HANA capabilities

Configure Price Quote & S/4HANA Variant ConfigurationIntegrated CPQ and S/4HANA for the Entire Configuration Life Cycle

Lab Preview


ManufacturingCloud Services

SAP Ariba

IoT/AIN

Connected Products

HCP Services

SAP HANA Cloud Platform

SAP HANA

SAP NetWeaver

ECC

Project and DesignCollaboration

EmbeddedSystems

Systems Engineer Cockpit

Embedded SW

Requirements Management

Functional Structure Management

Where Used Analysis

Compatibility Management

Test Validation

IOT Analytics

Collaborative Engineering and Document Collaboration

Collaborative 3D Visual Design Review

Simple Task/Worklist Management

Change Management Integration

• Integrate software as part of the Smart Connected Product• Seamless systems engineering• Ensure compatibility between the software and hardware

• Closing the process gaps between engineering and the digital twins• Share, submit and collect engineering documents• Execute task structure across company boundaries

Storyline Lab Preview

Future

Future


Data Foundation

Mode 1 Mode 2

Business Intelligence

Intelligently connect people,things, and businesses

Differentiate Businesses

Hyper-automate businessprocesses

Run Businesses

Deliver insights to drivestrategic decisions

Steer Businesses

Embrace DataOrchestrate data of anyvolume, velocity, and variety

The world of Bi-Modal IT


SAP Connected ProductsThe Digital Product Innovation Platform

ProjectCollaboration

Network

DigitalManufacturingAsset IntelligenceNetwork

Industry 4.0 & Internet of Things

SAP HANA PLATFORM

Digital CoreS/4HANA

DesignCollaboration

Network

Customer Engagement and Commerce

SAP HANA CLOUD PLATFORM

PartnerSupplier

CustomerManufacturer,AftermarketCustomer

SAP HANA CLOUD PLATFORM

Future

EngineeringFormulation

Design

Projects & Portfolios

Variant Configuration

Thank you Contact information:

Johann DornbachVice President, ConfigureProducts & Innovation S/4HANA Idea – LoB Research & Development

SAP SE Dietmar-Hopp-Allee 16, 69190 Walldorf, GermanyT +49 6227 7-70578, M +49 171-3085432E [email protected]


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Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or itsaffiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products andservices are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed asconstituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to developor release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible futuredevelopments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any timefor any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to placeundue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

How SAP S/4HANA supports the Digitization of LoB R&D · PDF fileHow SAP S/4HANA supports the...

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