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PUBLIC

Eva Zauke, SAP

June 21, 2018

Connecting People, Things and Businesses with IoTChallenges, Opportunities and Learnings

2PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Outside-in View on the Economic Impact of IoT

“IoT systems can maximize value.

We estimate a potential economic impact of as much as $11.1

trillion per year in 2025 for IoT applications with 1.2 -3.7 T in

factories related to operations & equipment optimization.

B2B applications of IoT have greater economic potential than

consumer applications.”

IoT is the key enabler to

transform the supply chain &

manufacturing

3PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

IoT drivers and challenges - From hype to business value

Sensors built in /

intelligent things

Ubiquitous

connectivity5G

Unlimited data

storage at low cost

Cloud scalability,

elasticity, availability

Drivers

Challenges

Heterogeneous

devices standards

Scenario-specific

algorithms

Many market

players

Security, safety,

privacy concernsLack of skills

IoT for everyone

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Reimagining

maintenanceSource:TRENITALIA

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SDA

Kubernetes Cluster

Device

sDevice

s

SAP VoraSAP Data Hub

Pipeline Engine

IoT Applications

Data Ingestion Pipeline

Op1 Op 2 Op 3 Op 4

SparkCustom

CodeRules

Cluster Orchestration

Edge Services

External / Cloud

Storage

Devices

Device

ses

IoT Services

Message Broker

SAP HANA

In-memory store

Processing Engine

Engine Engine

Engine Engine

REFINE

STRUCTURE MODEL

CONSUME

COLLECT

Devices

IoT Application Enablement

SAP Predictive

Maintenance

and Service SAP Connected

Goods

SAP Vehicle

Insights

Partner

applications

Customer

applications...

Product Portfolio

Technology

Portfolio

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So, what are customers imagining?

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Reducing

Down-Time

Reduce Maintanance

Effort and Costs

Faster Delivery

Optimizing Machine Efficiency Transform Products

to Services

New Business Models

New

Customer Experience

Personalized

Products & Services

(Lot-size 1)

Efficiency Led Models

New Digital

Services

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SAP Leonardo

Innovation Portfolio

Blockchain

Machine

Learning

Internet of

Things

Big Data

Data

IntelligenceAnalytics

SAP Leonardo is a guided,

design-led approach to digital

transformation. It bundles new

intelligent technologies with

design thinking, services, and

expertise so you can

transform quickly – with less

risk.

9PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Award Winning IoT Development Accelerator to Shape the Digital Future

Technology(feasibility)

Business(viability)

SAP Customer(desirability)

SAP IoT Startup Accelerator is a global co-innovation

program for B2B startups innovating in the world of the

Industrial Internet of Things, the Digital Supply Chain,

Digital Manufacturing and Enterprise Assets with

business solutions powered by technology.

10PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Digital Transformation Common StrategiesInnovate to win the market while continuing to run the business

Experiment in a

Sandbox

Incubate exploratory

skunkworks projects;

often with hidden

opportunity costs and no

plan to integrate into

operations

Launch Massive Initiative

Develop bold, multi-year,

enterprise-wide initiative;

often having multiple goals

with uncertain outcomes

Do Nothing … Yet

Focus on optimizing current

operations while monitoring

progress of others;

often surrendering first mover

advantage

Implement Tactically

Proceed with projects

using separate point

solutions;

often without advancing a

broader organizational

strategy

THINK BIG… …START SMALL

11PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

In summary …

• IoT is already driving significant business value for enterprises today

• Businesses are executing on their IoT journeys – achieving better outcomes

• The continued evolution of semantic standards will further accelerate adoption of IoT

enabled processes

• IoT will drive the need for ‚Data Refineries‘ and a new set of skills within business

• ‚Things to Insight‘ will not be enough – ‚Things to Action‘ needs to be the ambition

12PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

“Start with the customer and work backwards.”Jeff Bezos, Amazon

Jeff Bezos, Amazon

Thank you.

Eva Zauke

Vice President LoB Digital Supply Chain & Manufacturing

SAP SE

eva.zauke@sap.com

+49 6227 7 40123

+49 160 908 22993

www.sap.com/iot-startup

www.linkedin.com/in/eva-zauke-4732b72/

twitter.com/EvaZauke

Follow the SAP IoT Startup Accelerator

Twitter: IoT_Accelerator

YouTube: SAP IoT Startup Accelerator

Website: www.sap.com/iot-startup

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