asug webcast - digital transformation in supply chain - february 17 2016
TRANSCRIPT
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2015 KEY FACTS & FIGURES
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SPECIAL INTEREST GROUPS
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Start off business transformation withthese forward-looking webcast series• Recharge HR: January 20 – March 11• ASUG SAP Center of Excellence (COE), Reducing Costs
and Improving Business Value: January 29–
May 4• Internet of Things: February 23 – April 27 • Digital Transformation: February 2 – March 1
Visit www.asug.com/events/Featured for more details.
WEBCAST SERIES
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8/19/2019 ASUG Webcast - Digital Transformation in Supply Chain - February 17 2016
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ASUG University
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ASUG NEWS
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Weekly Updates.
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DIGITALIST MAGAZINE
• ExecutiveQuarterly
• A quarterly digital magazine that showcasesunder-the-radar trends and insights aboutthe emerging digital economy
• Next issue to launch in NovemberDownload on Apple StoreDownload on Google PlayView Current Issue
• Online Edition• Always-on digital companion on digital
journey• Provides the latest news and analysis of
what’s important in the digital economyVisit digitalistmag.comSubscribe to daily updates
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Digital Transformation in Supply ChainASUG Webcast February 17, 2
Martin Barkman, Vice President, Demand-Driven Business Planning, Extended Supply Cha
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
How Digital Transformation Is Impacting the Extended Supply ChainExamples of digital disruption
One of the largest taxi co
owns no taxisOne of the largest accomowns no real estate
One of the largest phone owns no infrastructure
One of the most valuableowns no inventory
One of the largest movie owns no cinemas
One of the largest music owns no music
One of the biggest book downs no books
Digital disruptionis happening
U B E R
airbnb
skype
Alibaba
NETFLIX
iTunes
Amazon
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
How Digital Transformation Is Impacting the Extended Supply ChainDigital transformation in the extended supply chain
SResource ScarcitySustainability
D e s i gn
R e s p o n
dEnd-to-EndVisibility
Customers &Markets
Suppliers &Logistics
Products &Assets
People &Resources
Individualized ProductsIndustry 4.0
Cust
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
How Digital Transformation Is Impacting the Extended Supply ChainDigital transformation in the extended supply chain
SResource ScarcitySustainability
Individualized ProductsIndustry 4.0
Cust
D e s i gn
R e s p o n
d
Suppliers &Logistics
People &Resources
Customers &Markets
Products &Assets
AssetIntelligence
Network
Product Safety& Stewardship
BusinessNetwork
IntegratedBusiness Plann
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Customer CentricityTransformation in the extended supply chain
Resource ScarcitySustainability
Individualized ProductsIndustry 4.0
Cust
S
D e s i gn
R e s p o n
dEnd-to-EndVisibility
Customers &Markets
Suppliers &Logistics
Products &Assets
People &Resources
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Customer CentricityGlobal trends driving customer centricity (2)
The first decade of this century wireduction in global poverty and athe middle class , but 71% of th
still subsists on less than $10 a dapeople live on less than $
Source:Pew Research Center, A Global Middle Clas
Millennials and
Generation Z
Social MediaCatalogsWeb Sites
MobileSmart Devices
KiosksRetail
Rising middle class inemerging markets
Proliferation and convergence of channels
http://icons.iconarchive.com/icons/iconshock/ecommerce/128/full-shopping-cart-icon.pnghttp://icons.iconarchive.com/icons/iconshock/ecommerce/128/full-shopping-cart-icon.pnghttp://icons.iconarchive.com/icons/iconshock/ecommerce/128/full-shopping-cart-icon.pnghttp://icons.iconarchive.com/icons/visualpharm/office-space/128/touch-screen-kiosk-icon.pnghttp://icons.iconarchive.com/icons/visualpharm/office-space/128/touch-screen-kiosk-icon.pnghttp://icons.iconarchive.com/icons/archigraphs/mac/64/iPhone-icon.pnghttp://icons.iconarchive.com/icons/archigraphs/mac/64/iPhone-icon.png
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Customer CentricityGlobal trends driving customer centricity (1)
Social MediaCatalogsWeb Sites
MobileSmart Devices
KiosksRetail
Proliferation and convergence of channels
“Generation Z is mobile firstonly, and they are nothing likSource: Brian Solis, 25 Disruptive Technolo
Millennials and
Generation Z
Rising middle class inemerging markets
http://icons.iconarchive.com/icons/iconshock/ecommerce/128/full-shopping-cart-icon.pnghttp://icons.iconarchive.com/icons/iconshock/ecommerce/128/full-shopping-cart-icon.pnghttp://icons.iconarchive.com/icons/iconshock/ecommerce/128/full-shopping-cart-icon.pnghttp://icons.iconarchive.com/icons/visualpharm/office-space/128/touch-screen-kiosk-icon.pnghttp://icons.iconarchive.com/icons/visualpharm/office-space/128/touch-screen-kiosk-icon.pnghttp://icons.iconarchive.com/icons/archigraphs/mac/64/iPhone-icon.pnghttp://icons.iconarchive.com/icons/archigraphs/mac/64/iPhone-icon.png
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Customer CentricityGlobal trends driving customer centricity (3)
A large majority of U.S. consumers ashopping , with 69% webrooming
online and buy in-store), and 4(browse products in-store and
Source: Harris Interactive, Showrooming anHoliday Shopping Season
Social MediaCatalogsWeb Sites
MobileSmart Devices
KiosksRetail
Proliferation and convergence of channels
Millennials and
Generation Z
Rising middle class inemerging markets
http://icons.iconarchive.com/icons/iconshock/ecommerce/128/full-shopping-cart-icon.pnghttp://icons.iconarchive.com/icons/iconshock/ecommerce/128/full-shopping-cart-icon.pnghttp://icons.iconarchive.com/icons/iconshock/ecommerce/128/full-shopping-cart-icon.pnghttp://icons.iconarchive.com/icons/visualpharm/office-space/128/touch-screen-kiosk-icon.pnghttp://icons.iconarchive.com/icons/visualpharm/office-space/128/touch-screen-kiosk-icon.pnghttp://icons.iconarchive.com/icons/archigraphs/mac/64/iPhone-icon.pnghttp://icons.iconarchive.com/icons/archigraphs/mac/64/iPhone-icon.png
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Customer Centricity A key enabler of a digitized supply chain
45%of enterprises are buildingdirect-to-customer fulfillmentcapabilitiesSource:SCM World’s 2014 Chief Supply Chain Officer survey
Omni-Channel Fulfillment
Omni-Channel S
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
SAP Integrated Business Planning Solution: A new approach tosupply chain planning g approach
One Harmonized Data Model Avoid any latency due to integration efforts and leverage theSAP ERP data model
Cloud First ApproachThe solutions will be provided in the SAP Cloud but also bemade available on-premise
Mobile Enabled ExperienceIntroduce state-of-the art user experience with communication
capabilities (SAP JAM) and MS Excel Spreadsheets
Built on SAP HANADemand Networks require real-time monitoring and a focuson short-term planning and scenario simulation
New Planning AlgorithmsLeverage predictive analytics (e.g. demand sensing)algorithm in combination with optimization
SAP Integrated Business Planning
Inv
Response & Supply Dem
Sales & Operations Planning
Enhanced User Experience
Supply Chain Control Tower
SAP HANA Platform
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This documentwithout 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
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Individualized ProductsDigital transformation in the extended supply chain
Resource ScarcitySustainability
Individualized ProductsIndustry 4.0
Cust
S
D e s i gn
R e s p o n
dEnd-to-EndVisibility
Customers &Markets
Suppliers &Logistics
Products &Assets
People &Resources
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Individualized ProductsGlobal trends driving individualization of products
SMAPRO
SOLUTIONINDIVIDUALIZATION
SPEED OFINNOVATION
Market of OneMulti-faceted configuration and
highly variable demand with regionaland localized requirements.
Increase variants and reduce costs
DifferentiationMove first by highly flexible,
open and dynamic innovationprocesses. Insight-driven
decision making
MecDesign and prod
components a(design, electron
Analyze Big
DIGITALIZATION
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Individualized ProductsChanging the way we design, make, and deliver
80%of companies said that digitaloperations are critical toevery organizations
manufacturingcompetitivenessSource: Digital Manufacturing & Design Innovation Institute Digitized Inventory
Lot Size Configured Products
Industry 4.0
Persona
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Resource ScarcityDigital transformation in the extended supply chain
Resource ScarcitySustainability
Individualized ProductsIndustry 4.0
Cust
S
D e s i gn
R e s p o n
dEnd-to-EndVisibility
Customers &Markets
Suppliers &Logistics
Products &Assets
People &Resources
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Talent Acquisition
Risk Management
Resource ScarcityBusiness challenges
• Insufficient resource visibility• High network dependencies• Increasing compliance and regulatory requireme
• Limited supp• Increasing so
the digital ag• Sustainabilit
accountabilit
• Aging workforce• Challenge of attracting workers• Skill requirements increase with
complexity• Contingent labor
64%of companies say that priorityaccess to scarce rawmaterials/capacity and
collaborative cost reductionwith suppliers are extremelyrelevant to their competitiveadvantageSource: SCM World’s 2014 Chief Supply Chain Officer survey
EnviroSocial
Sh i E
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Sharing EconomyDigital transformation in the extended supply chain (1/2)
Resource ScarcitySustainability
D e s i gn
R e s p o n
dEnd-to-EndVisibility
Customers &Markets
Suppliers &Logistics
Products &Assets
People &Resources
Individualized ProductsIndustry 4.0
Cust
S
Sh i E
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Sharing EconomyDigital transformation in the extended supply chain (2/2)
50%of networked companies are morelikely than their peers to haveincreased sales, higher profitmargins, and be market leadersSource: McKinsey
ManufacturingLogistics
ResponseNetwork
StrategicSourcing
ProductComplian
ManufacturingNetwork
ProjectNetwork
Di it l C f th E t d d S l Ch i
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Digital Core of the Extended Supply ChainDigital transformation in the extended supply chain
Resource ScarcitySustainability
D e s i gn
R e s p o n
dTheDigitalCore
Customers &Markets
Suppliers &Logistics
Products &Assets
People &Resources
Individualized ProductsIndustry 4.0
Cust
S
Digit l C f th E t d d S l Ch i
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Digital Core of the Extended Supply ChainLiving in a digital economy
Last two years
90 %of the world’s data hasbeen generated 1
Last two years
40 %growth in adoption ofbusiness networks 2
1 ScienceDaily , May 22, 2013.2 Technology Ado ption Report on Business
Networks, Ardent Partners, 2014.
3 Internet of Things (IoT) 2013 to 2020 Market Forecast: Billions of Things, Trillions of Dollars, IDC, 2013.
4 Statista, 2014.
212 billionEnd of 2020
“things” will be connected 3
By 2020
9 billionmobile users in the world 4
In 2014
51 %of workloads pr
5 Cisco GloMethodolSystems I
Digital Core of the Extended Supply Chain
http://www.sciencedaily.com/releases/2013/05/130522085217.htmhttp://www.sciencedaily.com/releases/2013/05/130522085217.htmhttp://cporising.com/2014/10/09/introducing-ardent-partners-technology-adoption-report-on-business-networks/http://cporising.com/2014/10/09/introducing-ardent-partners-technology-adoption-report-on-business-networks/http://cporising.com/2014/10/09/introducing-ardent-partners-technology-adoption-report-on-business-networks/http://cporising.com/2014/10/09/introducing-ardent-partners-technology-adoption-report-on-business-networks/http://cts.businesswire.com/ct/CT?id=smartlink&url=http://www.idc.com/getdoc.jsp?containerId=243661&esheet=50721954&newsitemid=20131003005687&lan=en-US&anchor=Internet+of+Things+(IoT)+2013+to+2020+Market+Analysis:+Billions+of+Things,+Trillions+of+Dollars&index=4&md5=59da372afbdafaa6e8563b0f5d6412f0http://cts.businesswire.com/ct/CT?id=smartlink&url=http://www.idc.com/getdoc.jsp?containerId=243661&esheet=50721954&newsitemid=20131003005687&lan=en-US&anchor=Internet+of+Things+(IoT)+2013+to+2020+Market+Analysis:+Billions+of+Things,+Trillions+of+Dollars&index=4&md5=59da372afbdafaa6e8563b0f5d6412f0http://cts.businesswire.com/ct/CT?id=smartlink&url=http://www.idc.com/getdoc.jsp?containerId=243661&esheet=50721954&newsitemid=20131003005687&lan=en-US&anchor=Internet+of+Things+(IoT)+2013+to+2020+Market+Analysis:+Billions+of+Things,+Trillions+of+Dollars&index=4&md5=59da372afbdafaa6e8563b0f5d6412f0http://cts.businesswire.com/ct/CT?id=smartlink&url=http://www.idc.com/getdoc.jsp?containerId=243661&esheet=50721954&newsitemid=20131003005687&lan=en-US&anchor=Internet+of+Things+(IoT)+2013+to+2020+Market+Analysis:+Billions+of+Things,+Trillions+of+Dollars&index=4&md5=59da372afbdafaa6e8563b0f5d6412f0http://www.statista.com/statistics/218984/number-of-global-mobile-users-since-2010/http://www.cisco.com/c/en/us/solutions/collateral/service-provider/global-cloud-index-gci/Cloud_Index_White_Paper.htmlhttp://www.cisco.com/c/en/us/solutions/collateral/service-provider/global-cloud-index-gci/Cloud_Index_White_Paper.htmlhttp://www.cisco.com/c/en/us/solutions/collateral/service-provider/global-cloud-index-gci/Cloud_Index_White_Paper.htmlhttp://www.statista.com/statistics/218984/number-of-global-mobile-users-since-2010/http://cts.businesswire.com/ct/CT?id=smartlink&url=http://www.idc.com/getdoc.jsp?containerId=243661&esheet=50721954&newsitemid=20131003005687&lan=en-US&anchor=Internet+of+Things+(IoT)+2013+to+2020+Market+Analysis:+Billions+of+Things,+Trillions+of+Dollars&index=4&md5=59da372afbdafaa6e8563b0f5d6412f0http://cporising.com/2014/10/09/introducing-ardent-partners-technology-adoption-report-on-business-networks/http://www.sciencedaily.com/releases/2013/05/130522085217.htm
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Digital Core of the Extended Supply ChainBusiness leaders need to digitally transform
How can I digitize my core?
Core Business Processes
Move away from lengthy and time-consuming batch processes
React quickly to market signalshappening in real time across the
value chain
Connect my enterprise to people,devices, business, and social
networks
Resource ScarcitySustainability
D e s i gn
R e s p o n
dTheDigitalCore
Customers &Markets
Suppliers &Logistics
Products & Assets
People &Resources
Individualized ProductsIndustry 4.0
Digital Core of the Extended Supply Chain
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Outdated decision makingBatch processes preventingrelevant decision making basedon real-time, latest information
Complex tecSystems desigtransactional dand analytical
Although inteinherent data prevents immkey data
Digital Core of the Extended Supply ChainBut often complexity is standing in the way
Complex system landscapeMany applications & disparatesoftware for different processes,creating different versions of truth,duplicated and scatteredinformation
Scattered information TechnologBatch orientation
Digital Core of the Extended Supply Chain
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Digital Core of the Extended Supply ChainSAP S/4HANA – A new business suite for new business outcomes
• Real-time processes• Digitally connected enterprise• Best business practices
• Simplified d• Choice of d• Open innov
• Live business insight• Role-based experience• All devices
Decision making TecBusiness processes
Immediate business impact New profit models Much lower TCO
Digital Core of the Extended Supply Chain
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© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Digital Core of the Extended Supply ChainSimplify the increased complexity
Decision making TecBusiness processes
Extended
supply chain
Business Network
SAP S/4HANA
Design
Produce
Operate
Deliver
Plan
Respond
Connectors
SAP Fiori on any device
On-premise
Cloud
Internet of Things
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Contact information:
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