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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2 Customer
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fromThings
to Outcomes
fromThings
to Outcomes
Webinar 4 User Groups –
IoT Overview
March 8th, 2016
Nils Herzberg
SVP IoT GTM
Unprecedented Change Fueled by Hyper-Connectivity
fromThings
to Outcomes
2.5 billion Connected people on
social networks by 2020
75 billion Connected devices by 2020
$65 trillion Global business trade by 2020
fromThings
to Outcomes
Consumer Industries
Traditional clothing retailers transforming into healthcare companies through connected
apparel and digital fitness tools
Manufacturing
Large equipment manufacturers are moving towards providing not just manufacturing
equipment, but rather outcome-based services
fromThings
to Outcomes
fromThings
to Outcomes
Outcomes
Things
Valu
e c
hain
Create
Thing to Insight
Insight to Action
Action to Outcomes
Evolve
Know
Create new business value and ecosystem advantages
Evolve business processes to turn insight into outcomes
Know where opportunity and risk exists from connected data
Lower cost
New revenue
Optimized productivity
Increased uptime The Outcomes Customers Want
Improved turnarounds
Greater capacity Better efficiency
Faster deliveries
Less waste
New products & services
Usage-based pricing
New business models
fromThings
to Outcomes
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Discrete
Manufacturing Transportation & Logistics
Energy & Natural
Resources
SAP HANA Platform
IT
Outc
om
es
OT
Thin
gs
Tech
Partners
Horizontal
End-to-End Connected Solutions across Industries
Connected
Manufacturing
Connected
Logistics Connected Energy
Predictive Maintenance and Service / Asset Intelligence Network
Consumer
Industries
Connected Consumer Connected
Vehicles
fromThings
to Outcomes
SAP HANA Cloud Platform
SAP Internet of Things Platform
to Outcomes
SAP HANA Platform
VORA
Other DB’s Hadoop
On-Premise
Application Framework
IoT Integration
Services
Cloud Non SAP
Cloud
Machine Integration
IoT Integration
Services Dynamic Tiering
HANA Cloud
Integration
Smart Data
Integration
Process
Integration
IoT App
Services IoT
Analytics
SAP IoT Edge
SAP / Partner
Connected
Devices Machine Integration
SAP & non- SAP Core Apps
SAP & Partner IoT Apps
HANA Cloud
Connector
Applic
ation
Exte
nsio
n
Process & Data
Integration
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to Outcomes
SAP Business Suite or S/4HANA
SAP analytics
Data integration/HANA/HCP
Existing sensor data New sensor data
SAP IoT point solution
SAP analytics
Data integration/HANA/HCP
Existing sensor data New sensor data
Type 1 - New data for existing
apps and analytics Type 2 - IoT point applications
The First Question – What are you trying to do?
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HANA Cloud Platform
HANA
Applications Applications
Platform
Cloud OnPremise
APPS
The Next Question – Cloud or OnPremise
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The Next Question – Cloud or OnPremise
Existing assets and sensors New assets and sensors
HANA Cloud Platform (incl. Device Management, Connectivity
and Data Ingestion options)
HANA, VORA (incl. Device Management, Connectivity and other
Data Ingestion Options)
Analytics & Prediction Analytics & Prediction
Application Application Application Application Application Application Application
Existing assets and sensors New assets and sensors
Cloud On Premise
PaaS
SaaS
Platfo
rm
Softw
are
‘Extend existing SAP product investments for IoT’ ‘Use SAP’s pre-integrated stack for your IoT needs’
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Predictive Maintenance and Service
Predictive Maintenance
and Service
Asset Intelligence
Network
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While the world's GDP is around
$46.6 trillion, the value of all assets
is assumed to be much higher.
Maintenance spend alone comes
up to $447 billion.
Asset Maintenance Is a Huge Cost Factor
Source: Global Framework on Maintenance and Asset Management
10 – 40% Reduction of maintenance costs of factory
equipment
up to 50% Reduction of equipment downtime
3 – 5% Reduction of equipment capital investment
by extending the useful life of machinery
Improved equipment maintenance is a major source of value:
$630B USD Potential economic impact
per year in 2025
5 – 10% Reduction of maintenance costs
3 – 5% Increase in output by avoiding unplanned
outages
5 – 10% Reduction of equipment capital investment
by extending the useful life of machinery
Manufacturing
Worksites
Oil & Gas, Mining,
Construction
$360B USD Potential economic impact
per year in 2025
fromThings
to Outcomes
Improving Asset Reliability Promises Large Savings Opportunities
Maintenance Engineer /
Reliability Manager / Operations Engineer /
Quality Manager
Service Agent /
Service Technician /
Engineer /
Warranty Claims Manager
Remote Service Management
New business models around
the device
SAP Predictive
Maintenance and Service
Asset
Manufacturer Asset Operator
CRM, Customer Service Enterprise Asset
Management
Predictive Maintenance for
critical assets
Operations improvements
Quality improvements
Physical Asset Level
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2 Major Usage Types for Predictive Maintenance
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“Our predictive maintenance
solution has enabled us to improve
service levels for customers.”
fromThings
to Outcomes
Service Agent /
Service Technician /
Engineer /
Warranty Claims Manager
Remote Service Management
New business models around the device
Asset Manufacturer CRM,
Customer Service
fromThings
to Outcomes
fromThings
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8-10% reduction in
maintenance costs
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to Outcomes
Maintenance Engineer /
Reliability Manager /
Operations Engineer /
Quality Manager
Predictive Maintenance for critical assets
Operations improvements
Quality improvements
Asset Operator Enterprise Asset
Management
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Annual spend for asset
maintenance reduced by
approximately 1-2%
fromThings
to Outcomes
Manufacturing Integration &
Intelligence
Manufacturing
Execution
Predictive Maintenance
and Service
Plant
Connectivity
Asset Intelligence
Network
Connected Manufacturing
fromThings
to Outcomes
Reduced production lead time for
customized motorbikes from
21-day cycle to 6 hours
fromThings
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Network
Logistics Hub
SAP Vehicle
Insights
SAP Vehicle
Network
Connected Vehicle
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to Outcomes
Asset Information Network
Global
Inventory Asset Lifecycle
Work
Scheduling
Benchmarking
Pay
on
Performance
Lease
Management
Equipment
History
Applications
Pump OEM
Valve OEM
Service
Provider
Mining
Company
O&G
Company
Utility
Company
Content Integration Network
OEMs & Service Providers Operators
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to Outcomes
SAP Asset Intelligence Network
Collaboration between OEM, service provider, and operator
Real-time visibility into
plant and logistics operations
Monitor, analyze, and predict asset
performance to reduce unplanned downtime and increase EH&S
One stop shop for manufacturers,
service providers & operators to
collaborate on asset usage
Effectively allocated service providers and
field maintenance personnel work and
task allocations
Connected
Manufacturing
Real-time visibility of
production
operations. Intelligent
production output,
shutdown/Turnarounds
Connected
Logistics Scheduling
Routing
Mobile Work Mgt
Maintenance
Transactions
Available at
Remote Sites People, Supply Replenishment
Project Updates
Reporting Prescriptive
Maintenance Condition Monitoring
Alerting
Vibration Analysis
Predictions
Asset Intelligence
Network
Up to date service documentation
Spare parts / Replacement
Performance Benchmarking
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SAP’s portfolio of IoT Applications designed to drive outcomes
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SAP IoT stands for closing the loop from “Things to Outcomes“
SAP IoT Platform: IoT Edge Client, SAP HANA Platform (On-Premise), SAP HANA Cloud
Platform (Cloud)
Key solutions include Predictive Maintenance and Service, Connected Manufacturing,
Connected Logistics, Connected Vehicles, Connected Consumer, Connected Retail
IoT is an ecosystem play, SAP will partner with various players to deliver an end-to-end IoT offer
In Conclusion…
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 39 Customer
SAP Internet of Things – Webinar Series
SAP IoT Overview Nils Herzberg Mar 8
SAP Logistics Hub Uwe Kürsten Mar 22
Create new business models based on vehicle
data analysis with SAP Vehicle Insight Mirjam Metzler Mar 29
SAP Asset Intelligent Network Dirk Kempf Apr 5
SAP Predictive Maintenance Simon Lee Mar 21
SAP HANA Cloud Platform & HANA Cloud
Integration Udo Paltzer / Alex Braun Mar 15
SAP IoT Application Services Harry Lube Apr 26
SAP IoT for Industries (Self-optimized
production) Alex Mathew Apr 7
40 © 2016 SAP SE or an SAP affiliate company. All rights reserved.
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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 41 Customer
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constituting 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 develop
or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future
developments, 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 time
for 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 place
undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.