Drive Your Company’s Digital Transformation

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IntroductionDigital PlatformDrive Your Company’sDigital TransformationDelivering TransformationNext StepsContact Us

IntroductionDigital PlatformDelivering TransformationNext StepsContact UsTake the Lead in YourDigital Transformation JourneyDigital disruption is happening everywhere – andchanging everything. It’s driving new business models,new ways of working, and new ways of collaborating andcommunicating.Technology innovations like machine learning, artificialintelligence, and the Internet of Things (IoT) are turningour hyperconnected world into a huge information systemwhere business value no longer lies in traditional assets,but in information about those assets. For enterprisesthat are willing to think big, embrace change, movequickly, and organize differently, there are countlessopportunities to reap the rewards of the digital economy.2 /69Digital transformation is now a CEO priority as morebusiness leaders understand that the organizations thatthrive in the digital economy will be those that: Can execute on a vision for digital transformation Blend digital and physical experiences to garnercustomer allegiance Turn information into a competitive advantage Create new revenue streams from connected systems Leverage technology to win the talent warHow can the CIO take the lead in digital transformationand execute effectively? 2017 SAP SE or an SAP affiliate company. All rights reserved.

IntroductionDigital PlatformDelivering TransformationNext StepsContact UsCreate aLive BusinessLeaders in digital transformation are highly connectedcompanies: complex, adaptive systems that functionmore like an organism than a machine. At SAP we callthese “Live Businesses,” designed for agility, robustness,resilience, productivity, and longevity.These leaders share three common characteristics.SeamlessThey are using digital technology to offer a seamless,in-the-moment customer experience that deliverspersonalization through automation.3 /69ConnectedThese seamless experiences can be achieved onlywhen processes and the enterprise are connected toecosystems, things, people, and customers.Data drivenDigital experiences use sophisticated data analysisand intuitive user design to filter large volumes ofinformation and show you only what you need to know.So what does the enterprise architecture that connectseverything together look like? And, more importantly,what do you need to do to get there? 2017 SAP SE or an SAP affiliate company. All rights reserved.

IntroductionDigital PlatformDelivering TransformationNext StepsContact UsEstablish a Future-ProofDigital PlatformIDC has identified the building of a future-proof digitalplatform as one of its key recipes for success in the digitaleconomy.1The digital platform comprises a number of technologybuilding blocks, each dependent on having the right dataat the right time. The platform architecture is driven bycloud, enterprise mobility, Big Data, analytics, and socialmedia, together with innovation accelerators such asrobotics, natural interfaces, 3D printing, the Internet ofThings, cognitive systems, and next-generation security.Core enterprise resource planning (ERP) processesstill have a critical role to play, but they must be able tointegrate seamlessly with these new digital technologies.4 /69Gartner describes this as a bimodal practice.Mode 1 focuses on exploiting what is known, whilerenovating the legacy environment into a state thatis fit for a digital world. Mode 2 is exploratory,experimenting to solve new problems and optimizedfor areas of uncertainty.2“Both modes are essential to create substantialvalue and drive significant organizational change,and neither is static. Marrying a more predictableevolution of products and technologies (Mode 1) withthe new and innovative (Mode 2) is the essence of anenterprise bimodal capability.”31. IDC InfoBrief, sponsored by SAP, “Enabling the CIO toLead Digital: Recipes for Success,” May 2017.2. “Gartner IT Glossary,” Gartner Inc.,www.gartner.com/it-glossary/bimodal.3. “Gartner IT Glossary.” 2017 SAP SE or an SAP affiliate company. All rights reserved.

IntroductionDigital PlatformDelivering TransformationNext StepsContact UsWhat a Digital PlatformNeeds to Achieve for the BusinessExternal FacingBe the engine by which anorganization creates newrevenue streams from itsproducts and ultimately allows itto become a platform companyAllow the building of anecosystem of partners,suppliers, and customers –by transformingexperiencesConnect to and managemultiple things (in theInternet of Things – IoTecosystem) to feed dataanalysis capabilitiesProvide an environmentto develop “net new”applications to deliver newcapabilities to the ecosystem inan open fashionAllow the development ofinnovation-led business logicand new internally developeddigital applicationsLeverage data sets frommodernized core ERM, SCM,CRM, and ME systems andprovide the ability to triggernew business processes withinthese core applicationsAllow internal and externalBig Data sets to be accessedand interact with theecosystem and augmentdecision makingAllow the business toproduce new insights inreal timeIDC InfoBrief, sponsored by SAP,Internal Facing“Enabling the CIO to Lead Digital: Recipesfor Success,” May 2017.5 /69 2017 SAP SE or an SAP affiliate company. All rights reserved.

IntroductionDigital PlatformDelivering TransformationNext StepsContact UsDelivering Integration withSAP Digital Transformation FrameworkThe SAP Digital Transformation Framework methodologyprovides for an end-to-end digital enterprise architecturethat can digitalize business processes. Based on a unifiedplatform that is enterprise ready, agile, and trusted, thisarchitecture and our next-generation business suite fullyintegrate the front-end and back-end operations througha solid digital core.This digital enterprise architecture dramatically simplifiesthe IT landscape and provides an expandable platform forfuture business innovation. The digital core is the hub thatlinks your business processes to create a fluid, nimble, and livedigital business that adapts to an ever-changing environment,enabling you to take the lead in the digital economy.6 /69SupplierCollaborationCustomerExperienceDigital ceEngagementAssets &Supply ChainFigure 1: SAP DigitalTransformation FrameworkClick to view full image ›SAP HANASAP Cloud Platform 2017 SAP SE or an SAP affiliate company. All rights reserved.

IntroductionDigital PlatformDelivering TransformationNext StepsContact UsDrive Business Flexibility and Valuefrom Innovation with SAP SolutionsSAP S/4HANA combines business transactions andanalytics to form a reimagined digital core that connectsapplications and ecosystems across all the key parts ofyour business. Deployable on premise and in the cloud,it delivers real-time intelligent insights for enhanceddecision making.The SAP HANA platform ties into the full suite of SAPapplications, both at the core with SAP S/4HANA andat the edge with our line-of-business applications.Cost management is a top priority for every CEO andCFO, and SAP Ariba and Concur solutions digitalize7 /69spend management across materials and travel, whileSAP SuccessFactors and SAP Fieldglass solutionsdigitalize the management of the entire employeeand contingent workforce. SAP Hybris solutionsdrive fourth-generation customer engagementand commerce, and the SAP Leonardo systemintelligently connects people, things, and businesses.As your needs change, you can continue to innovateand evolve with SAP Cloud Platform, which provides thefoundation for new application development, extensions,and integration across the SAP product portfolio. 2017 SAP SE or an SAP affiliate company. All rights reserved.

IntroductionDigital PlatformDelivering TransformationNext StepsContact UsWork with SAP As Your Trusted Partnerto Deliver New Business ValueWith our industry-leading portfolio of cloud solutions, SAP is uniquely positioned to enable digital transformation across all key aspects of your business value chain.With the help of SAP, you can:Create new valuefrom applicationsrapidly8 /69Drive automation,agility, and businessinnovationGain insight andpredict outcomesEnable livebusiness by turninginsight into actionHelp ensurebusiness continuityReduce total costof ownership (TCO)and drive operationalefficiencies 2017 SAP SE or an SAP affiliate company. All rights reserved.

IntroductionData PlatformDigital PlatformDigital CoreDelivering TransformationModern AnalyticsPrivate CloudNext StepsContact UsCloud PlatformBuild a Unified Data PlatformThat Is Open and Enterprise ReadyTransform data into insight to act in the moment and innovate for the digital economy with database anddata management solutions from SAP.1234SAP’s Viewpoint onDigital TransformationIntroducing the SAP Databaseand Data Management PortfolioModernize Your Core andInnovate at the EdgeTransform Data into Insightto Drive Innovation9 /69567SAP Database and Data Management:Delivering a Unified and Open Data PlatformWhere Could SAP Database andData Management Solutions Take You?SAP Database and Data ManagementSolutions in Action: Customer SuccessesLearn more aboutSAP Database andData ManagementsolutionsFind out more ›Contact us › 2017 SAP SE or an SAP affiliate company. All rights reserved.

IntroductionData PlatformDigital PlatformDigital CoreNext StepsDelivering TransformationModern AnalyticsPrivate CloudContact UsCloud PlatformSAP’s Viewpoint onDigital TransformationWhat is your viewpoint on digital transformation?The defining attributes of Industry 4.0 are hyperconnectivity, cloud, Big Data, and the Internet of Things.Digital connectivity is becoming ubiquitous. Smart sensorswill soon be everywhere, even in food packaging andclothes. Couple that with the ability to process inordinateamounts of data less expensively and at a faster pace –and we are firmly in the middle of a major trigger event:digital transformation. The world is quickly dividing intothose who transform and those who don’t – and only thedigitally fit will transform and survive.1Why now? What is the competitive advantage ofdigital transformation?“Digital natives” like Google, Airbnb, and Uber have theluxury of being unencumbered by a legacy past and arestarting fresh. They’re leading the charge, and everyonemust pay close attention to these disruptive upstarts.The vast majority of companies are “digital immigrants,”an entire faction that is using older technologies and datedprocesses to conduct their business today. How do digitalimmigrants evolve their strategies and drive a successfulbusiness? Companies must stay relevant in the digitaleconomy. They need to understand current technologicalchange so they can figure out how to change themselves.Greg McStravick,President ofDatabase andData Management,SAP SE1 2 3 4 5 6 710 /69 2017 SAP SE or an SAP affiliate company. All rights reserved.

IntroductionData PlatformThey have to watch what other industry participantsare doing and consider applying some of theirinnovations. They must also watch other industriesthat may be bleeding into their own.Certainly, they must be aware of the digital nativescoming from all directions. These companiestypically take advantage of new technologies todeliver something better than what exists today.The most successful digital natives typically solve aproblem and connect people.Digital PlatformDigital CoreDelivering TransformationModern AnalyticsPrivate CloudThey provide a simpler, better, and faster userexperience. They give people the ability to use asolution wherever and whenever they want.Digital immigrants are coming from behind.Over the years, they have built legacy systems thathave become bloated and incredibly complex.They need a massive data infrastructure to supporttheir applications and multiple copies of the data forreporting and analytics.Next StepsContact UsCloud PlatformHow do you get started with digitaltransformation?Simplification is part of the answer. I absolutelybelieve the introduction of SAP HANA is proving tobe a huge enabler of digital transformation, and thusIndustry 4.0, because it’s not just a database, it’s anin-memory computing platform. With SAP HANA asthe digital transformation platform, we can simplifythe core ways that companies run – making it easierfor them to unwire the past and rewire the future.Companies can then leverage other technologies ina new way.11 2 3 4 5 6 711 /69 2017 SAP SE or an SAP affiliate company. All rights reserved.

IntroductionData PlatformDigital PlatformDigital CoreWhat roles do recent technology innovationslike Big Data and machine learning play in adigital platform? What’s next?Machine learning (ML) is being driven by advances incomputing power and the availability of Big Data. Asa result, it is becoming feasible to apply ML to a widerrange of data-driven applications beyond predictiveanalytics algorithms.In addition to a standalone algorithmic platformservice, ML is also being leveraged to make existingdata and analytic tools more intelligent, such assmart data discovery, preparation, quality, andvisualization. As even more evidence, key platformDelivering TransformationModern AnalyticsPrivate Cloudvendors have added ML services to their platformsand are creating various smart data and analyticstools for organizations to use.In 2017, machine learning and cognitive computingwill leave their indelible mark on the data platformmarket: machine learning makes things smarter,cognitive computing makes things easier to use.We can only guess at what the market will develop,but something tells me the business and consumerlandscape will look much different in 10 years’ timethanks to these advances.Additionally, we’re seeing data transforming intoa tradable asset. Organizations are beginning toNext StepsContact UsCloud Platformunderstand the potential commercial value of theirinternal proprietary data sets and will increasinglylook for ways to monetize them as profitable assets.For smart organizations that have a handle on theirdata, they would be wise to commercialize theirown internal data, while augmenting analytics withexternal, third-party data. Data brokers, professionalservices firms, technology vendors, and otherspecialist service providers will begin to developservices to help enable this, with data marketplacesarising as a result. Organizations will also improvetheir internal analytics by augmenting their analyticstools with external, third-party data. Vendors willdifferentiate their data and analytics platforms bydistinguishing them with value-add content.11 2 3 4 5 6 712 /69 2017 SAP SE or an SAP affiliate company. All rights reserved.

IntroductionData PlatformDigital PlatformDigital CoreDelivering TransformationModern AnalyticsPrivate CloudNext StepsContact UsCloud PlatformIntroducing the SAP Databaseand Data Management PortfolioTransformAll data into insight by using andgoverning enterprise data andBig Data anywhere in real time.ActIn the moment with confidence bydelivering real-time insight from livedata to adapt business processes.InnovateWithout constraints by usingbusiness applications built on anin-memory data platform deliveringbreakthrough performance.“With this digitaltransformation platform,we can simplify the coreways that companiesrun – to make it easierfor them to unwirethe past and rewirethe future.”2Greg McStravick,President of Database andData Management, SAP SE1 2 3 4 5 6 713 /69 2017 SAP SE or an SAP affiliate company. All rights reserved.

IntroductionData PlatformDigital PlatformDigital CoreDelivering TransformationModern AnalyticsPrivate CloudNext StepsContact UsCloud PlatformModernize Your Coreand Innovate at the EdgeTo run a successful digital business,companies need to: Modernize the IT core to drive downcosts and increase efficiency Experiment and innovate at the edgeto create new business opportunitiesand valueBimodal ITHow to steeryour company?How to engage?How to run yourcompany?3How to sense?CoreEdgeMode 1Mode 2SAP CloudPlatformHow to decide?Figure 2:Bimodal ITSAP HANA 1 2 3 4 5 6 714 /69 2017 SAP SE or an SAP affiliate company. All rights reserved.

IntroductionData PlatformDigital PlatformDigital CoreNext StepsDelivering TransformationModern AnalyticsPrivate CloudContact UsCloud PlatformTransform Data into Insightto Drive InnovationSAP can help you lead your organization’sdigital journey and address the challengesof data proliferation, integration, insight,and innovation. Transform all your IoTdata, Big Data, and customer data –the foundation of a digital enterprise –into insight to drive innovation and createbusiness value (see Figure 3).Figure terpriseBigDataPartnerInnovation1 2 3 4 5 6 715 /69 2017 SAP SE or an SAP affiliate company. All rights reserved.

IntroductionData PlatformDigital PlatformDigital CoreNext StepsDelivering TransformationPrivate CloudModern AnalyticsContact UsCloud PlatformSAP Database and Data Management:Delivering a Unified and Open Data PlatformWe deliver a unified, intelligentdata platform that is enterpriseready, agile, and trusted for anyheterogeneous IT environment(see Figure 4). It ties into the fullsuite of SAP software includingSAP S/4HANA, SAP Analyticssolutions, and line-of-businesscloud applications. And youcan extend or build on-premiseand cloud applications withSAP Cloud ticsportfolioSAP Cloud PlatformSAPS/4HANA SAP Cloud PlatformBig Data ServicesEnterprise businessapplicationsDatabase anddata managementplatformExtensionsIoTplatformAnalytic and IoT applications:SAP BW/4HANAData warehousesand lakesCustom andthird-party applicationsAnalyticsOn premiseand cloud5SAP HANA MiddlewareEnterprise information managementDatabase (SAP ASE, SAP IQ, SAP SQL Anywhere )Distributed computing (SAP Vora )Any databaseFigure 4:Unified DataPlatformIoT, Big Data, open source engines1 2 3 4 5 6 716 /69 2017 SAP SE or an SAP affiliate company. All rights reserved.

IntroductionData PlatformDigital PlatformDigital CoreDelivering TransformationModern AnalyticsPrivate CloudNext StepsContact UsCloud PlatformWhere Could SAP Database and Data ManagementSolutions Take You?Save575%GrowUS 53 millionAccelerate40%Five-year ROI*Higher annual revenueper organization*Higher productivity*1 2 3 4 5 6 717 /69“This IDC study showsthat interviewedorganizations areusing the SAP HANAplatform to createsignificant valuethrough real-timeanalytical insights anddelivering higher-valuebusiness applicationsand services.”*6* Carl W. Olofson, Matthew Marden, “Innovating with Real-Time Data and Insights with SAP HANA for Better Business Outcomesand More Efficient Operations,” IDC, November 2016. 2017 SAP SE or an SAP affiliate company. All rights reserved.

IntroductionData PlatformDigital PlatformDigital CoreDelivering TransformationModern AnalyticsPrivate CloudNext StepsContact UsCloud PlatformSAP Database and Data Management Solutionsin Action: Customer SuccessesTrenitalia:Transforming all data into insightTrenitalia uses the SAP HANA platform toanalyze data coming from thousands ofsensors aboard their trains in real time,helping to improve maintenance processesand, ultimately, offer better customer service.Vodafone:Acting in the momentVodafone leverages the SAP Big Data MarginAssurance solution powered by SAP HANA toobtain a granular view of customer profitabilityin the moment and provide detailed analyticalinsight on profitability and revenue leakage.Bosch:Innovating without constraintBosch used SAP Cloud Platform to developits secure truck parking application.The application leverages IoT and other datato help truckers rapidly find a suitable and safeparking space to comply with legal rest times.71 2 3 4 5 6 718 /69 2017 SAP SE or an SAP

It’s driving new business models, new ways of working, and new ways of collaborating and communicating. Technology innovations like machine learning, artificial intelligence, and the Internet of Things (IoT) are turning our hyperconnected world into a huge information system where business value no longer lies in traditional assets,