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SAP Enterprise Asset ManagementSolution Overview and Strategy in a NutshellDr.-Ing. Achim Krüger, Vice President, Line of Business Asset Management, SAP SEJuly 12, 2017PUBLIC

Legal disclaimerThe information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permissionof SAP. 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 developor release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possiblefuture developments, products and or platforms directions and functionality are all subject to change and may be changedby SAP at any time for any reason without notice. The information in this document is not a commitment, promise or legalobligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, eitherexpress or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, ornon-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumesno responsibility for errors or omissions in this document, except if such damages were caused by SAP s willful misconductor gross negligence.All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differmaterially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, whichspeak only as of their dates, and they should not be relied upon in making purchasing decisions. 2017 SAP Leonardo Live. All rights reserved. I PUBLIC2

SAP Enterprise Asset Management (SAP EAM) solutionTrends in asset management ISO 55001, ISO 14001,ISO 45001, and the like Internet of Things (IoT)to scale connectivity Optimizing cost, risk,and performance Big Data for gettinginsight from IT and OT Balancing OPEX withCAPEX Analytics for predictionand simulation Meeting stakeholderexpectations Empoweringpractitioners Facilitatingcollaboration amongEPCs, OEMs,service providers,and operators 2017 SAP Leonardo Live. All rights reserved. I PUBLICBusinesschallengesTechnologyenablers Machine learningto improvebusiness decisions Enterprise mobilityto empower employees Cloud for collaboration3

SAP Enterprise Asset ManagementAsset management in an ever-more-connected worldCostPerformanceRiskAssetBusiness needsanalysisConnecting corporate objectiveswith the asset systemPlan and designAcquisition andcommissionOperation andmaintenanceConnecting all stakeholdersalongside the asset lifecycleManufacturer55001Configuration andchange managementDecommissionand disposalService providerOwner or operatorSupplierDealerEPCITConnecting IT with OTOTwww.sap.com/eam 2017 SAP Leonardo Live. All rights reserved. I PUBLIC4

SAP Enterprise Asset ManagementSupporting asset management processes from end to endPortfolio and projectmanagementAsset operationsand maintenanceEnvironment, health,and safetyIdea managementAsset strategyand performanceIncident managementAsset ance planning andschedulingHealth and safetymanagementAsset xecutionEnvironmentmanagementPredictive maintenanceand serviceResource managementMobile assetmanagementManagementof changeProject connectivity 2017 SAP Leonardo Live. All rights reserved. I PUBLICAssetnetworkMaintenance safetyand permit to work5

Bimodal IT according to GartnerSystems of record versus systems of innovation –Mode 2SAP IntegratedBusinessPlanning–Systems ofinnovationGovernanceChangeSAP LeonardoSystems ofdifferentiationSystems ofrecord Mode 1Source: Gartner 2017 SAP Leonardo Live. All rights reserved. I PUBLIC6

Envisioned logical architecture for SAP Enterprise Asset ManagementStrategic directionBusiness intelligenceSAP Digital BoardroomSteer businessesDeliver insights to drivestrategic decisionsMode 1Run businessesHyperautomate businessprocessesSAP FieldglasssolutionsSAP AribasolutionsInternet of ThingsFI MobileMobileEH&SPSPLMIntelligentlyconnect people,things, andDifferentiate BusinessbusinessesSTOSAP LeonardoIoT FoundationMRSMMSAP Asset Strategyand nanceMaintenanceandServiceMaster enceIntelligenceNetworkNetworkSAP SuccessFactorssolutionsPMMode 2SAP LeonardoSAP IntegratedBusiness Planning Digital coreEmbrace dataOrchestrate data of anyvolume, velocity, and variety 2017 SAP Leonardo Live. All rights reserved. I PUBLICData foundationMachinesSensorsOT SystemsEdge7

SAP Predictive Maintenance and ServiceFrom sensor to insight to convergenceDataanalysisMaintenanceactivities Onboarding Big Data ingestion Root cause analysis Connectivity Big Datainfrastructure Asset healthmonitoring Devicemanagement Security Merging sensor datawith businessinformation Prioritizedmaintenance andservice activities Anomaly detection Optimized warrantyand spare partsmanagement Triggering ofcorrective actions Prescriptivemaintenance Machine learningOutcomeBusinessvalue Customer experience Increased quality Lower costs Operational efficiency R&D effectiveness Material procurement Quality improvements 2017 SAP Leonardo Live. All rights reserved. I PUBLIC8

SAP Predictive Maintenance and ServiceHow can information systems help?Remote monitoringSAP Leonardo IoTcapabilitiesConnectedassets and sensors 2017 SAP Leonardo Live. All rights reserved. I PUBLICEngineeringrulesAgile planningLifeindicatorsOTsystems(such as SCADA)Alerts and actionsDistancescoringAnomalydetectionOtherdata sources(such as weather) Digital core(SAP S/4HANA)9

SAP Predictive Maintenance and ServiceSolution components and value driversActionsLogistics and maintenanceexecution systemsInsightsSAP Predictive Maintenance and ServiceAsset healthcontrol centerBusiness user Availability through the cloud or onpremiseDomain expert Flexible extension concept tobuild industry- or customer-specificmodels and analyticsAsset health factsheet Scalable machine learning enginethat drives data science insightsinto our business processesInsight provider catalogAlertsMachine learning LeonardoSAP LeonardoIoT EdgeSAP Leonardofor EdgeComputingMachine data 2017 SAP Leonardo Live. All rights reserved. I PUBLICData scientist Flexible visualizations acrossequipment structuresData manager Comprehensive processintegration: alert, discover,remedyBusiness data10

SAP Asset Strategy and Performance ManagementAdding more efficiency by looking at the fleetCondition data allows fora ranking of assetsaccording to a health score.CostRun-to-failureFor “healthier” assets,the service intervalcan be prolonged, while it can beshortened for others.This results in fewer failuresand lower maintenance atic)Preventive(static) 2017 SAP Leonardo Live. All rights reserved. I PUBLIC11

SAP Asset Strategy and Performance Management (planned)End-to-end process enablementBenefitsProcess innovation Increase overall asset availabilityIncrease MTBF – increase equipment reliabilityImprove utilization of assetsControl maintenance spendReduce work backlogIdentify savings opportunities through preventive andpredictive maintenance Reduce capital tied up in spare parts inventory Adopt a proactive and targeted maintenance strategy Change the sequence of the process using point appsClassification of assetsinto groupsAsset criticality and riskassessmentCollaborative failuremodes libraryAnalyze systems andfunctionsPerform RCMAnalyze and optimizemaintenance strategyPerform FMEAProject managerreviewSolution integration points SAP Asset Intelligence Network SAP Predictive Maintenance and Service SAP ERP application or SAP S/4HANA (PM, MM, FI/CO,PP functionalities) SAP Integrated Business PlanningPerform RCA, ETABad actormanagement andspares optimizationIntegrations andextension points to 3rdparty systemsCAPEX / OPEX inputsto maintenancestrategyMTBF – mean time between failures; FMEA – failure mode and effects analysis; RCM – reliability-centered maintenance; RCA – root cause analysis 2017 SAP Leonardo Live. All rights reserved. I PUBLICThis is the current state of planning and may be changed by SAP at any time.12

Digital transformation in asset management driven by IoT, cloud, andbusiness networksWhat does digital transformation mean for enterprise asset management?Connect to the asset Bring together information from operational and business systems (IT/OT convergence) Utilize the IoT for scaling transparency without neglecting existing information sourcesPredict asset system behavior Avoid unplanned downtime and major operational consequences through simulation and prediction Discover patterns of failure and preserve operational integrity Blend business IT information with operational (OT) dataShare asset information and collaborate Activate the ecosystem of OEMs, EPCs, service providers, and operators Make sure there is one version of truth on asset master data Use a business network to enable integrated processes in the cloud 2017 SAP Leonardo Live. All rights reserved. I PUBLIC13

SAP solutions for the asset management line of businessWhere to find more information about our road map and innovationRoad maps:http://www.sap.com/roadmapsValue maps:http://www.sap.com/solutionexplorerInnovation ns/innovation-discovery/ 2017 SAP Leonardo Live. All rights reserved. I PUBLIC14

Thank you.Dr. Achim KrügerVice President, Line of Business Asset ManagementSAP SEDietmar-Hopp-Allee 1669190 Walldorf, GermanyT 49 6227 7-60975F 49 6227 78-38446M 49 160 3603569S 49 6227 7-49510achim.krueger@sap.comMore ity/eam

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