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Page 1: Attention: The New Oxygen for Digital Media Inspire and shape · New Oxygen for Digital Media Inspire and shape a digital world that reinvents content consumption and ... Spotify,

- 1 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

Attention: The New Oxygen for Digital Media Inspire and shape a digital world that reinvents content consumption and commerce

Page 2: Attention: The New Oxygen for Digital Media Inspire and shape · New Oxygen for Digital Media Inspire and shape a digital world that reinvents content consumption and ... Spotify,

- 2 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

Dear Customers and Partners,

In today’s digital economy, there is intense pressure on media and entertainment companies to deliver compelling content experiences to increasingly fragmented audiences. In a world where a person is consuming media, on any device and anytime, the winners will be those companies that can deliver compelling content, drive content-enabled commerce, achieve more targeted audience value for their advertisers, and understand their audiences’ preferences or choices, often before the audiences themselves do.

We live in a digital media world, but attention spans are declining rapidly, especially in the mature media markets and in the younger audience.

Digital transformation is not new to media. There have been several “waves” of digital disruption, segment by segment, as technologies have evolved and consumers have driven the shift. Three major factors make this wave different:

• The competitors are different. They are well-funded with high market caps. They are innovative and aggressive. Their retail or software background makes them intensely focused on an outstanding user experience

• Consumers are empowered. In every other aspect of a consumer’s life, convenience, ubiquity, and simple engagement are prerequisites for brand survival. Consumers demand this from their media experience

• Audiences are fragmented. Consuming content on any device, anytime, and in any place is the norm. Advertisers need aggregated audiences, and re-aggregating this fragmentation is not easy

Traditional media companies need to embrace all of these shifts. New business models will emerge beyond the traditional content licensing and advertising revenue in place today. We may not know what these are, but one thing is for certain – to succeed, you must be consumer-centric.

To achieve this, your organization will need to be part of a digital network with flexible business processes based on a technology platform that can adapt in real time. Traditional analog-focused platforms and processes that have served you well in the linear business are challenged to do this.

SAP is working with 83% of the global media companies in the Forbes 2000, and we believe, with that deep industry knowledge and our digital network platform, powered by SAP HANA, we can help you compete for your audience and their attention.

Richard WhittingtonSenior Vice President Media Business SolutionsSAP

We envision a digital media network spanning all processes, from “glass to glass,” from content capture to the consumer’s screen, where media consumption and digital commerce merge into a single ecosystem.

Richard Whittington Senior Vice President Media Business SolutionsSAP

RICHARD’S POINT OF VIEW

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- 3 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

Executive Summary 4

Top 5 Technology Trends 8

Reimagining

Reimagining Business Models

Reimagining Business Processes

Reimagining Work

SAP HANA – The Great Simplifier

9

11

12

13

14

Digital Business Framework

The Digital Core for the Digital Media Network

Customer Experience

Workforce Engagement

The Business Network

Assets and the Internet of Things

SAP HANA Platform – A New Computing Paradigm

How Does It All Come Together?

14

16

17

18

19

20

21

22

How to Start 24

Why SAP?

SAP is Committed to Innovation

Create Competitive Advantage Through Innovation

SAP Services to Drive Your Success

SAP Comprehensive Ecosystem

26

27

28

29

30

TABLE OF CONTENTS

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- 4 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

EXECUTIVE SUMMARY

Big picture: We have entered into a digital transformation that will continue to shape the media industry

The digital transformation

Trends Three major trends are shaping the digitization of the media industry: increased competition, empowered consumers, and fragmented audiences, all caused by advances in consumer technologies that take advantage of hyper-connectivity, supercomputing, cloud, Big Data and data science (smarter world), and security and privacy.

Leading media companies are addressing these trends to: • Compete with the new entrants. Protect existing revenue with new business

models enabled by technologies like over-the-top (OTT) video distribution and content-embedded commerce

• Embrace the empowered consumer. Earn additional revenue from their content and capitalize on the demand for ever more personalized information and shared entertainment experiences

• Explore ways to understand and re-aggregate audiences for advertisers. Remain competitive and attractive with profitable new ways to reach consumers

Leaders are emerging quickly from unexpected placesMass media have been changed forever. The consumer defines the experience, un-bundling and cord cutting; personalized playlists replace linear programming, completely reshaping supply chains. Digital native entrants like Google, Facebook, Apple, Spotify, Amazon, and Netflix are examples of the disruptors.

Platform companies are winning Companies that have embraced the digital world and are executing on their digital strategy are quickly growing shareholder and stakeholder value. These are the platform-based companies like those described here. They look to the digital ecosystem to collaborate in the cloud, streamlining content production and delivering relevant entertainment experiences.

Why are platform companies winning?• Platforms provide flexibility and the ability to pivot on business model changes as

the market changes• Platforms that integrate data-driven insight with business processes allow for

experimentation• Consumers want a consistent and an engaging experience across all points of

consumption and interaction

Digital business models are disruptive. The rules have changed.

• Apple’s launch of iTunes pioneered commercially successful digital content distribution with DRM- and device-restricted content downloads. SAP software enabled Apple to scale the business for fast growth and high transaction volumes.1

• Spotify and Netflix disrupted former MP3 download and home entertainment markets by introducing personalized content streaming and set the stage for the latest transformation to data-driven subscription marketing of cloud-stored content libraries.2

• Skyrock started as an independent radio station’s music blogging site. Skyrock used SAP data technology to link individual followers with matching interests, sharing playlists and forming communities. The group dynamic has proven much more effective for winning loyalty than acquiring individual followers. Skyrock eventually became the leading social network in France.3

• Condé Nast will monetize its media brand and exposure to specific audiences and extend its business models beyond classic media distribution into adjacent digital commerce activities like fashion and other lifestyle products.4

TODAY, EVERY MEDIA COMPANY NEEDS TO BE A CONSUMER-FOCUSED PLATFORM BUSINESS

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- 5 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

EXECUTIVE SUMMARY

New business models

Traditional media companies and new players are constantly being challenged to reimagine business models.• Competing as an ecosystem. We see media

companies working with value chain participants that typically would not have been part of that value chain in the analog days. For example, Spotify and Starbucks have recently partnered

• Monetizing the experience. Smarter consumers are demanding new content consumption models. From all-you-can-consume subscription models, such as Netflix, Amazon Prime, and Apple Music, to firewalls and other pay-for-content models

• Placing the empowered consumer at the center of the value chain. New competitors come from outside the industry and have focused on a direct-to-consumer (D2C) model for growth in their core businesses. They are now adding media to their product mix and bringing their experience in D2C to the media space

Digital content will

account for 87% of

the growth in spending in the entertainment and media industry between 2013 and 20176

$12 billion in electronic home video revenue will be higher than box office ($11.8 billion) by 20177

The four forces reshaping the digital advertising landscape: Mobile Video Native Programmatic8

The digital media network: “from glass to glass”

Moving away from the traditional value chain to a “consumer at the center of the value chain” model creates a unique opportunity for media companies to own the end consumer. The value chain is becoming a “glass-to-glass” digital media network.5 Consisting of cloud-based services from all the value chain participants, it delivers a content experience to the consumer on any device, anywhere.

Digitization drivers

Digitization in media is being driven by three major trends:1. Connected devices. Devices are no longer

asynchronous. These “smart” IP devices allow two-way interaction with consumers with the ability to conduct both digital commerce for content and physical commerce from the content experience

2.Data growth. These devices are generating vast amounts of digital “breadcrumbs” about usage and sentiment around the content. This is an exciting development when looking for new revenue streams

3.Cloud as a distribution enabler. Content is managed and distributed as bits and bytes and stored in the cloud, making it available anywhere, anytime, and increasingly on any device. Notably, digital video is the main driver for increases in Internet traffic

The future: The mass media value chain transitions into a digital media network

Traditional TV Value Chain Digital to Consumer

Consumer

TV Channel

Studio

CE VendorMSO

Consumer Selects ContentContent Pushed To An Audience

Studio

TV Channel

MSO(Broadcast, Satellite, Cable)

Audience

CE(Devices)

CDN

OVP/OTT

MSO: Multi Service Operator; CE: Consumer Electronics; OVP: Online Video Platform; OTT: Over The Top; CDN: Content Delivery Network

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- 6 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

REIMAGINING

Do you have the right strategy? The starting point of the transformation journey is to reimagine your business with business outcomes and customers at the center.

EXECUTIVE SUMMARY

REIMAGINE BUSINESS PROCESSESChanging business models and digital technology drive business process efficiency and innovation that inspire new business approaches and lower TCO –but they also accelerate breakthrough technology. We saw this in digital advertising networks and will see this in content creation and editing, and asset management and storage, transmission, and distribution.

REIMAGINE WORKDigital transformation is not just changing the way that media companies interact with their consumers; it is also changing the very nature of work within media companies. For example, companies like the BBC are completely orienting work and employee locations around content and then considering distribution as a pipe – “create once, distribute many times” being the mantra.

In addition, the media industry has traditionally had a younger workforce, and these employees demand a higher grade of user experience at work to match what they have outside of work, in an increasingly mobile-first world.

REIMAGINE BUSINESS MODELSAudience fragmentation and blurred value chain boundaries challenge established business models without a clear road ahead. We see new business models emerging along three main categories:• Compete as an ecosystem• Compete as a platform• Monetize the experience

The digital network

We believe the winners in the shift to digital are those media companies that build their businesses around a core platform. This platform must support the legacy business while at the same time have the flexibility required by the new business models, processes, and way the empowered employee of today works.

This platform must have data as its core central nervous system and support the end-to-end digital value chain, both inside the organization but, as importantly, across the glass-to-glass ecosystem – from content creation to content consumption, from audience identification and targeting to monetization.

SAP’s digital business framework is based on five key pillars:1. Customer engagement across all channels2. Supplier collaboration across all spend categories 3. A new platform for core business processes that bring

together transactions and analytics in real time to be smarter, faster, and simpler

4. Workforce engagement, including employees and contractors

5. Connectivity, analytics, and data-driven automation for real-time insights and new business models

Road map to the digital media network: Steps to digitize your business

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- 7 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

EXECUTIVE SUMMARY

The future: How to monetize the disruption

Two fundamental questions remain: “How do I take advantage of the disruptions?” and, “How can SAP help me?”

SAP’s platforms will be the game-changing play for traditional media companies to become the dominant forces in the new digitally disrupted media landscape. SAP has reinvented our core business around the SAP HANA platform and uses this extensively in our own global business.

The SAP HANA platform provides a foundational element that allows you to build applications for processing information in real time, giving you the ability to react much faster than with your current process and technology landscapes. Many of our customers have not only improved their current businesses this way, but have also gone on to create new businesses or new business models leveraging the insight they gained with this new platform paradigm.

Disruption Revenue opportunity examples SAP’s unique value

Smarter consumers are demanding new content consumption models

• Exploit long-tail content to engage nicheaudiences

• Monetize across any platform• Create content bundles for B2B or D2C

• Real-time visibility into the rights on the content you own across the enterprise

• Flexible bundling options with our “beyond CRM” solutions mean that your marketing teams are not constrained by technology when being creative

From content to commerce

• Leverage content-driven relationship to up-sell or cross-sell physical or digital goods

• Drive revenue of static advertising to convert browsing into transactions

• Solutions that go “beyond CRM” – SAP’s customer engagement and commerce solutions help you create dynamic campaigns and target offers to specific segments

• Display ads drive commerce in your electronic channels using SAP’s customer engagement and commerce solutions

Audience insight • Provide advertisers with more targeted “audience of one” information

• Provide more engaging content based on likes and sentiment to drive deeper/longer engagement

• SAP HANA helps you understand in real time the consumption and conversation around your content. Leverage predicative analytics within the platform to serve the next, best offer – physical product or digital

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- 8 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

EXECUTIVE SUMMARY

We are witnessing an unmatched era of true business innovation. Breakthrough technologies have matured and hit scale together, enabling five defining technology trends:

Fundamental changes: Five technology trends changing everything

Every person and every asset is connected, disrupting all the established rules around business channels. With media audiences being inherently social, congregating on cloud platforms freely sharing opinions and preferences, media companies have the opportunity to transform into consumer-centric businesses.

HYPERCONNECTIVITY

The limits of 20th century computing power are gone. The digital media asset network, powered by real-time in-memory computing, creates infinite business opportunities for data-driven, individually customized content delivery and deep audience insight, matching content to the consumer as “attention becomes the new oxygen for media companies.”

SUPER COMPUTING

Media consumers have embraced B2C cloud platforms as their preferred delivery network, with content streaming services dominating the growth of media consumption. Content libraries now reside on new cloud-based collaboration platforms, enabling media enterprises to connect in real time with business partners and millions of consumers. Discover a song, stream the song, see a trailer, stream the movie – this is now the norm.

CLOUD COMPUTING

New entrants to the media business world are bringing new data-driven insight to the business. Fact-based analysis of consumer likes, dislikes, sentiments, and consumption are “table stakes.” Powered by automated glass-to-glass delivery of media assets, data-driven journalism, contextual advertising, and personalized programming drive experience and value. The new media company must deliver at every point of engagement to monetize the new business models.

SMARTER WORLD

Consumer data is sensitive and must be protected, with privacy being a big concern globally. Today’s media company must balance insight and personalization services with consumers’ desire for privacy. Secure cloud storage and digital streaming technology overcome the need to distribute digital copies, thus greatly reducing the risk of piracy and unauthorized sharing by the target audiences.

SECURITY/PRIVACY

1

2

3

4

5

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- 9 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

REIMAGINING

THE DIGITAL ECONOMY OFFERS INFINITE NEW OPPORTUNITIESIn a connected world, where every company is becoming a technology company, smarter products and services will refocus commerce on business outcomes and blur industry lines.

- 9 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

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- 10 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

DIGITAL INNOVATION IS REAL

REIMAGINE EVERYTHING

Reimagined business models require an evolution in business processes.

• Digital subscription and bundled offerings Flexible access to cloud-stored contents is replacing ownership of media products.

• Metering and entitlementNew payment and consumption models enable personalized subscription offerings that need to be developed and managed.

• Content-embedded commerce Allow content monetization beyond the traditional content licensing and advertising models.

• Retail-sponsored content accessThe convergence of retail and media brings synergies and opportunities.

• Consumer analytics Understanding viewing behavior to optimize the content supply chain and monetization opportunities.

• Consumer profiling and personalizationThe “golden record” as the basis for maximizing personal relevance and personalization of offerings.

REIMAGINE BUSINESS MODELS

REIMAGINEBUSINESS PROCESSES

REIMAGINE WORK

The evolution of the business model will be determined by the digital maturity of the media company, ranging from digital native companies, to traditional media companies, or companies from other industries moving into the digital media.

• Compete as an ecosystemThe traditional content licensing model plays heavily here, and the ecosystem can be both internal or external.

• Compete as a platformCapitalize on the demand for individually customized content delivery as a glass-to-glass value chain. Examples of this include iTunes, Amazon, and Netflix.

• Monetize the experience Engagement is key, with data analytics and consumer profiling being used to optimize and streamline advertising to boost accuracy, relevance, and the value of advertising.

To be successful, reimagined business models and processes need an adaptive workforce with new skills.

• Digital business processes These require a workforce with the right culture, skills, and imagination to adapt to the dramatic changes reshaping the industry.

• Big Data Employees will require the right information, at the right time, in a format that improves decision quality and profitability. Technology has to provide the information in an easily consumed format for all analytical skill levels.

• Flexible workforce managementMany media companies have adjusted their cost structure as revenues decline. Organizations need flexibility to manage headcount and employee skill mixture as the business changes further.

Digital transformation has been a reality in media since the arrival of the iPod and MP3 players over 15 years ago. The evolution of this digital transformation has necessitated the media industry adapt to new value chains, empowered consumers, and shifting economics. The question on the table for media executives is really one of delivering an engaging consumer experience at profitable margins.

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- 11 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

REIMAGINE BUSINESS MODELS

REIMAGINE EVERYTHING

Audience fragmentation, blurred media boundaries, and the shift from product-centric mass media push models to consumer-defined bundling and pull mechanisms have disrupted established mass media business models. We are seeing new business models develop with value coming from direct consumer interaction, commerce integration, and data-driven customization of content delivery and advertising targeting.

Compete as an ecosystem

The active relationship with their digital audiences enables media companies like Condé Nast, Hubert Burda, and ProSiebenSat.1 to go beyond advertising into the transactional e-commerce business. • Leading media brands such as Style.com can define their

customers more specifically than general online retailers, allowing better targeting of commerce offerings and thus a more effective and personal relationship9

• Media companies such as Disney, with its DisneyLife streaming service, are putting the consumers at the center of their own internal ecosystems, allowing personalized access to content

Compete as a platform

The new entrants into the media business have built their success on the concept of a platform. Using business models such as free, freemium, advertising-supported, pay walls, and all-in subscriptions, these platforms offer powerful engagement mechanisms that allow experimentation with the ability to shift gears quickly. Traditional media companies can support these models too, but this often requires higher investment costs, making experiments more costly. Examples of shifts that are presenting new opportunities include:• Internet protocol television (IPTV) programming is expected

to pervade the pay TV market,10 creating potential for new perpetual digital relationships with OTT streaming video on demand (SVOD)11

• Big Data: The wealth of data that is potentially available about these individual relationships creates new challenges and opportunities for data-driven content provision

• With the glass-to-glass digital content network, live streaming has become available for everyone to share content and has ignited a new advertising format that is on the path to become be the next big thing for digital marketing12

Monetize the experience

Traditionally, monetizing the experience has meant content licensing and advertising. As margin pressure mounts on both of these forms of revenue, media companies need to decide how to replace lost revenue. There is a proliferation of “digital bread crumbs,” or trails of data that can be used to monetize the experience with:• Programmatic advertising – data-driven automation in

marketing communication • Single advertising campaigns across all media touch points

with TV, radio, OTT video, Web, mobile, print, and out-of-home media

• Up-sell and cross-sell of both physical and digital goods as personal/one-to-one become more accurate

Transformation of video consumptionA recent study revealed that 25% of the world’s Internet users consume digital video content every day,13 and the rate is expected to grow rapidly. Leading Internet TV provider Netflix has made its strategy to replace linear TV.14 Global OTT video revenues are predicted to double from $26 billion in 2015 to $51.1 billion in 2020.11

Combining media and commerceGerman broadcaster ProSiebenSat.1 expands e-commerce activities with the acquisition of online flight booking service Etraveli15,16

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- 12 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

REIMAGINE BUSINESS PROCESSES

Media companies that build flexible processes on top of company-wide technology platforms will be more nimble in this period of transformation. Those that continue to operate with siloed processes will see increasing challenges and costs due to complexity.

REIMAGINE EVERYTHING

Al Jazeera’s digital-only news platform AJ+ has passed the milestone of one billion online video views a year18

YouTube CEO, Susan Wojcicki, announces the introduction of shopping-enabled videos17

Digital subscriptions and bundled offerings

Digital business models hinge on personalized subscriptions and usage-based services. In order to succeed, a business must have the capability to rapidly launch customer-centric subscription offers so as to stand out from the competition.

Metering and entitlement

Historically, mass media have focused on content reach. But in digital channels, monetization of that reach relies on offering individually configurable buying options with flexible subscriptions. By building dynamic pricing models, businesses can leverage competitive differentiators to get ahead within their industry. Examples include metered pay walls, usage- and frequency-based entitlements, and combining digital and physical purchases.

Consumer analytics

Every consumer interaction creates a set of data that can be used to increase engagement. For example, enriching this data with additional insights such as OTT video consumption, psychographic, and demographic information allows for a far greater understanding of the end media consumer.

Content-embedded commerce

Digital interactive media demand an evolution from advertising to seamless click-through shopping options. Eventually, any relevant content can be transformed into a digital storefront for product placement or merchandising items, travel, tickets, or exclusive access to premium content.

Retail-sponsored content access

Access to content can be made available after a purchase from a retailer. Starbucks gives free music downloads to its paying customers, combining the added value of the music industry with retail sales.

Consumer profiling and personalization

This is rapidly becoming the norm as more demanding consumers want a personalized and relevant experience. All companies can benefit from a digital, 360-degree view of the consumer and the market in real time. Without this, they risk becoming irrelevant to today’s consumer.

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- 13 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

SAP HANA: THE GREAT SIMPLIFIER

The simpler and more integrated the platform, the greater the competitive advantage. New entrants to the media industry have the advantage of changing quickly to meet current market need, as they are starting from a digital foundation, while incumbents have to support current businesses and make investments in existing processes and technologies.

SAP made the strategic decision to take advantage of both in-memory technologies and cloud to re-platform our applications that we have evolved over the 40+ years of our existence into a single platform – SAP HANA.

What does this mean, and why do we think we are uniquely positioned to help customers move quickly to adapt to business model disruption? Two key concepts answer this question: simplification and innovation.

• Simplification is all about doing what we are already doing, but better, faster, with more flexibility, and with faster time to value

• Innovation is all about reimagining digital media business models and customer engagement by leveraging the technology trends discussed earlier

The diagram below is at the heart of the digital media network. With SAP HANA as a platform, you can now finally:• Leverage Big Data from content consumption, social, and

geospatial sources. Bringing all data together leads to informed, holistic decision making

• Extend the business process to cooperate with business partners in near real time via advanced cloud-based business networks

• Modernize business processes from finance to supply chain, enterprise asset management, and meter-to-cash, running them in real time with no data replication and no batch programs

SAP has constructed an innovation road map designed to bring in-memory computing together with cloud computing and mobility.

SMARTER DECISIONS + SMARTER TRANSACTIONS = SMARTER BUSINESS

Business Process

Business Intelligence

(Data & information)

Customer Experience

Subscription Modeling& Offering

Entitlement & Metering

Recommendations

Supply Chain Orchestration

Planning

Financials

SAP HANA PLATFORM

Customer Data

Usage data

Content Data

Device Data

Geospatial Data

3rd Party Data

Market Data

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- 14 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

DIGITAL BUSINESS FRAMEWORK

A SIMPLE AND PROVEN APPROACH TO VALUE CREATION THROUGH DIGITIZATIONEvery company across all industries requires a simple digital approach to build a pragmatic and executable vision of its digital strategy.

- 14 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

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- 15 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

At the core of the framework is SAP S/4HANA, which enables media companies to execute on the five key pillars of SAP’s digital business framework:1. Establish outcome-based customer engagement

across all channels2. Re-platform core business processes and bring

together transactions and analytics in real time to be smarter, faster, and simpler

3. Leverage a smarter and engaged workforce across all employees and contractors

4. Establish networked supplier collaboration across all participants in the value chain to improve efficiency as the economics of the media business change

5. Harness consumer connectivity, Big Data analytics, and data-driven automation for real-time insights and new business models

SAP has built the digital business framework to support media and entertainment companies in developing and executing on their enterprise strategy to transform and fully leverage and contribute to the digital media network.

Media companies must digitize to grow new profits and reduce costs by simplifying their operations. The value of the digital economy is based on how to serve the consumer or prosumer. Value creation often comes from innovative, differentiating technology solutions which are based on and coordinated by the digital core solutions. The digital business framework is the platform for innovation and business process optimization, connecting the workforce, the Internet of Things, the supply network, and customers.

Every media firm needs to think about the five pillars of a digital strategyDIGITAL BUSINESS FRAMEWORK

SAP HANA PLATFORM

Digital Core

WorkforceEngagement

SupplierCollaboration

Business Networks

CustomerExperience

Omni-channel

Assets& the Internet of Things

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- 16 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

THE DIGITAL CORE FOR THE DIGITAL MEDIA

SAP S/4HANA is the only end-to-end solution that covers all business processes and runs in-memory. It helps media companies run in real time for fundamentally better performance. For instance:• Quickly analyze trends in data

consumption and customer delivery preferences to personalize content to interests and devices

• Combine online and off-line content strategies, bundling digital and physical offerings across multiple channels and devices

• Obtain a 360-degree view of the customer to improve the overall customer experience

In addition, the SAP HANA Cloud Platform can be the single enterprise data source for SAP S/4HANA and the rest of your solution landscape.

Complexity is the arch enemy of innovation. Complexity creates delays, added expense, and hampers the goal of “fail fast.” SAP can help drive this complexity out of your business and power your digital media network from end to end – or glass to glass – so you can run simply.

Real time

Real-time optimization of business-based changes will have massive implications for how we work, how we do business, and how we organize.

Power of prediction and simulationEvery employee can gain real business insights with the help of simulation and predictive tools to drive smarter decisions, improve relevance for the customer, and orchestrate the digital media asset supply network.

AgilityThe ability to rapidly enter new markets, acquire and onboard new media business models, or reflect an organizational change in one-tenth of the time it takes with today’s systems will yield the agility required in the digital economy.

Deployment choice and lower TCOAccessing solutions to run the core has to be simple. Companies now have the choice to deploy in-house or in the cloud. In-memory computing also has a significant impact on TCO, and it will free up funds for infrastructure investment.

Consumer-grade user experienceUser experience is key to accepting digital change. It drives adoption, user engagement, and people productivity.

Simplify with SAP

SAP is known for core business solutions, typically found on premise and in the back office. These solutions help organizations make decisions when faced with the need to transform to address massive shifts impacting their industry – the customer at the center of the value chain, cloud as a consumption model, and the emergence of the business network. At the heart of this transformation is a need for simplicity.

Finance Human Resources

Digital Core

Media Content MonetizationCompelling Content Creation Audience Monetization

WorkforceEngagement

Assets & the Internet of Things

Supplier CollaborationBusiness Networks

Customer ExperienceOmni-channel

Shorten time to market and increase product success rates • Simplify and accelerate content creation

through real-time collaboration with producers, advertisers, and suppliers

• Quickly analyze trends in data consumption and customer delivery preferences to alter content to interests and devices

Enable multichannel distribution and grow margins • Combine on-line and off-line content

strategies, bundling digital and physical offerings across multiple channels and devices

• Deliver media digitally through new revenue models – free trials, flexible subscriptions or fully self-service

Become an audience-centric media enterprise• Deliver personalized engagements at every

stage of the customer journey• Learn from and adapt to every customer

interaction and ensure follow-up engagements are relevant

• Leverage analytics to convert data into key audience insights

Improve efficiency, increase visibility and lower cost with a single source of financials• Organizations that use 360-degree

financial processes enable their people to collaborate more efficiently and use business insight more effectively

Provide a flexible environment for skills and performance assessment• Enable growth and sustainability by

providing choice in the delivery of HR processes and services

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15%increase in productivity using social customer engagement to monitor social chatter23

68%of customers are willing to pay more for a better customer experience22

SAP solutions for customer engagement and commerce powered by the SAP HANA platform provide a single platform that brings together marketing, sales, services, and commerce to ensure seamless digitization of the entire customer experience.

• Orchestrate business processes across marketing, commerce, sales, and service

• Deliver personalized experiences in context with each interaction

• Create a single, harmonized experience for your customer while reducing the burden on employees

• Be prepared to engage your customers on the channels they choose at any moment in their journey

• Full integration with your core business processes provides a unique platform for omnichannel customer engagement and commerce

Three key factors are reshaping the consumer experience:

Outcome economy

The outcome economy requires a deep change in the media business model and new organizational and business process capabilities. Consumers want frictionless access to the content.

Customer journey

Consumers choose their own journey in multiple channels at their convenience – the pattern that emerges is not linear, as in the past. Only 12% of companies surveyed can provide a seamless handoff between customer engagement channels.19

Big Data and marketing in near real time

Big Data allows companies to sense and respond to customers’ needs in real time to set the next engagement points. With the proliferation of connected devices in content consumption, the data volume is expanding by orders of magnitude, giving rise to new business opportunities.

CONSUMER ENGAGEMENT

Digitize your end-to-end customer experience with SAP

40% greater ability to utilize Big Data to gain insights with well-established analytics and data modeling21

7%increase in customer satisfaction when profiles and interaction history for customers are available at the point of interaction20

Digital technology has changed the game, but consumers changed the rules. Consumers demand simple, seamless, personalized experiences across any channel, anytime, anywhere, and on any device.

SAP HANA PLATFORM

RETAIL

SOCIAL MEDIA

TVPRINT

ONLINE

CALL CENTER

SELFSERVICES

E-COMMERCE

PHONE SMS

MOBILE

TRADE

CUSTOMER

METERTO CASH

EXECUTION

$

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41%increase in contingent workforce spending in the past five years25

30% of executives say their companies give special attention to the particular wants and needs of millennials24

SAP can help with workforce engagement to: • Find the best people Accumulate data and insights to become more sophisticated about finding and managing freelancers and

employees• Manage the total workforce lifecycle From recruiting to onboarding, performance, compensation, and learning – all in one place• Simplify work Enable the workforce to easily access the right information across any device and ensure that regulatory and

compliance requirements are met

WORKFORCE ENGAGEMENT

Employees are working harder than ever, but growing complexity hampers productivity. The workforce needs access to smart, consumer-grade technology to work faster, better, and more efficiently.

Contingent labor is on the rise

Having a long tradition with freelance work, media companies are turning even more to contractors and service providers to drive content diversity for atomized audiences and lower fixed costs.

Data-driven workforce

One of the biggest trends is the growth of data-driven metrics in hiring and managing freelancers. From crowdsourced marketplace ratings and reviews to background checks and performance metrics, companies have access to a wide variety of data about the quality and background of the independent workers they hire.

Constant reorganization

Media is a global business, and we are seeing growth and consolidation in the industry as international markets become more and more critical to supporting expansion. The ability to operate across these global markets is critical, and a platform that simplifies the complexity of global operations (taxes, local laws, language) is an essential success factor.

Improve your total workforce productivity: Simplify with SAP

Social media Recruitment marketing in the digital era demands delivering a positive candidate experience across Internet and mobile channels as well as social media26

For a media company to be successful in the digital age, it has to attract and retain talent, and it has to engage this talent better than its competitors. Just as the consumer is seeking simplicity, simplicity is essential for the employee.

Contextual Intuitive

Adaptive & PredictiveAnywhere/ Anytime

Secure

SMARTER APPS WITH GREATER USER EXPERIENCE

SAP Fiori

FLEXIBLE WORKFORCE LIFECYCLE

Recruiting/On BoardingTime & Expense

Invoicing/PaymentStatement of Work

Performance Mgmt.Workforce Analytics

EMPLOYEE LIFECYCLE

Recruiting/ On BoardingPerformance & Goals

Succession & DevelopmentCompensation

Employee Record and PayrollTravel & Expense

Workforce AnalyticsLearning

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BUSINESS NETWORKS

SAP S/4HANA gives you incredible capabilities to digitize business processes across your business –and the connectivity to the business network allows you to extend those processes beyond the four walls of your business. Beyond programmatic: SAP Exchange Media24 invites advertisers and publishers to co-innovate in order to change and improve the existing industry model of programmatic advertising.27

• Solution already at scale to cover all spend categories (direct and indirect material, labor and services, travel and expenses)

• Business networks operate on a global basis, meet data security standards, and operate with near zero downtime

• Extensive offering by leveraging services from many partners such as supply chain, financing, payment, supplier certification, etc.

Collaboration across all spend categories will change the nature of how media companies acquire and sell content and manage advertising inventory, services, and labor. Several factors are redefining the game:

Business connectivity at scaleWhen players in the glass-to-glass digital media supply network, small and large, are connected in the millions, the transactional platform becomes the de facto standard. Orchestration of such a platform is only feasible through data-driven automation.

Programmatic advertising

Data-driven digital and mobile advertising, along with programmatic buying, is gaining massive momentum, yet the industry continues to face serious issues: lack of media transparency, accuracy, and efficiency.27

Network of networksMedia companies are looking at end-to-end services like sales of digital ad inventory, consumer-bundled content access, digital payment and invoice processing, travel booking, supplier certification, global business yellow-pages, etc. This is all possible as business networks are aggregating services into a one-stop shop.

$1 million+ in discounts realized by an STM publisher with SAP Ariba Procure-to-Pay in first eight months of usage28

50–75% faster transaction cycles are being achieved with the SAP Ariba Network.32

30%“We have enjoyed a 99% retention rate and 30% increase in our e-procurement customer base.”31

85K+ invoices are being processed per FTE with SAP Ariba at a leading U.S. entertainment company29

Simplify supplier collaboration with SAP Business Networks

B2B transactional inefficiencies are costing $600 billion per year, from sourcing and transacting to payment processing.

3xincrease in discounts achieved with SAP Ariba Network by a U.S. movie studio with 16% of suppliers participating in dynamic discounting on the network30

Manage Expenses Labor & Services Business Networks

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.

80% of companies that invested in IoT increased revenues35

3 billion Internet users and an expected 30-50 billion connected devices by 202033,34

ASSETS AND THE INTERNET OF THINGS

With SAP HANA, Internet of Things edition, organizations can now take embedded device data, analyze this data into information in real time, and apply this information across the value chain to drive business insights and create new business models.

We are witnessing new use cases with breathtaking results, all connected to the transition from a mass media to a consumer-centric business. Below are some key trends:

Technology-driven smart services drive new business models

Media companies use their trusted brands to evolve beyond offering advertising value and into digital commerce. They build stable, recurring business by moving from one-time sales (downloads) to streaming subscriptions, or from selling textbooks to offering 360-degree education services.

Data-driven customer engagement

Consumer-centric media companies use data-driven technology to build ownership of the consumer relationship and understanding of each individual’s needs and preferences. They connect people and build communities. As a result, they are becoming one-stop shops for every topic of relevance, whether personal, professional, or educational.

New alliances

With blurring industry boundaries in the digital era, media business models blend more than ever into adjacent industries such as education, sports, retail, travel, entertainment, and leisure. New and deeper alliances combine complementary strengths and offer a competitive advantage.

Connect, transform, and reimagine with SAP

The most dramatic change in the digital economy will be driven by hyperconnectivity and Big Data science, which will transform nearly every media business model.

Consumer Data

Machine to Machine

SocialMedia

Transaction Data

Structured and Unstructured Data

SAP HANAHADOOPPredicative Analytics

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Dream, develop, and deliver with SAP HANA Cloud Platform

SAP HANA Cloud Platform gives media firms the mobile, collaboration, integration, and analytics capabilities you need to dream big, develop fast, and deliver everywhere.

Application extensions

Extend your current cloud and on-premise solutions for additional customization, enhanced business flows, and more.

Real-time analytics

Engage customers, optimize business processes, and unleash new revenues with real-time analytic apps, powered by SAP HANA.

New cloud apps

Quickly build innovative consumer-grade and industry apps for today’s always-on, mobile, social, and data-driven world.

Extended storage capabilities

Holistically manage all structured, unstructured, and infinite data streams with flexible combinations of data stream processing, in-memory technology, disk-based columnar storage, and Hadoop-based storage solutions.

Data footprint reduction

Significantly reduce memory footprint and TCO. In ERP systems, we have seen ~6x reduction by SAP HANA's dictionary compression. Removing aggregates and actual and historical data separation further reduces the footprint up to ~10x.

The SAP HANA platform is…

Real-time, in-memory platform • 10x data footprint reduction for ERP • Extended storage, including Hadoop • Open architecture • Developer-friendly • Embeds mobile and analytics • Secure • Cloud-ready

GartnerSAP Fiori UX is a radical rethinking of the way people should interact with an ERP system. Based on these factors, Gartner believes that SAP Fiori UX is essential.36

Walmart“If you are not thinking about speed, you will be disrupted from your position because digitization is not just a buzz; it means to lower cost to get to real time and serve customers.”37

SAP HANA PLATFORM – A NEW COMPUTING PARADIGM

SAP HANA is the ultimate simplifier and the platform for innovation and digital business

SAP HANA

Infrastructure Delivery

Security (SSO, Identify)

Integration (SAP HANA Cloud

Integration)

Analytics (SAP Lumira)

UX (Mobile/ SAP Fiori)

Big Data (Hadoop, Spark)

Libraries (graph, predictive)

Data Platform (HANA DB, ASE)

SAP Data Centers Partner DCs Customer DCs Elastic Deployment Infrastructure

Platform

New Apps and Services INTEGRATIONEXTENSIONNEW APPS

Open Programming Containers(Java, XS2)

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HOW DOES IT ALL COME TOGETHER? – EXAMPLE

Example: The glass-to-glass Internet ecosystem

Content is captured on the “glass” – this can be a professional camera or increasingly on a high-definition camera used to capture action shots. These cameras deliver streamed live content at broadcast quality, often at events where it would not be economical to have a traditional broadcast crew, where candid, behind-the-scenes footage is desired, or where the consumer wants to create his or her own content – resulting in professional, prosumer, and consumer categories of content.

Depending on the “use case,” this content can be edited and curated in real time on the platform, made available as “extras” to a prime-time broadcast or sold as part of a digital bundle to a concert. Content can then be made available to sell, consumed as ad-supported content, or as part of a consumer product brand experience on the other “glass” – the consumer’s screen.

Increasingly, consumers demand personalization. From customized music playlists to Flipboard -type magazines, the consumer is no longer happy with a one-size-fits-all approach. We believe the next generation of media experience will be a combination of a mass experience augmented by personalization that in turn will be shared with friends. Consider this example:

Content can be shared on the platform much like people today share on social media, again depending on the type of content and the rights associated with it. Predictive recommendations connect creators and consumers one to one. This opens new micro-windows for content to be consumed beyond its originally intended window.

Since this is all digital and metadata is captured along the value chain, the usage, audience, and engagement can be measured and analyzed to provide advertisers great feedback on the reach, frequency, and transactional efficiency of their advertising spend.

DIGITAL BUSINESS SCENARIO: THE GLASS-TO-GLASS INTERNET ECOSYSTEM

Data-driven flexible core

GlassGlass

Produce Consume

Time

Superior consumer experience

Supplier collaboration

Social content is created by a consumer

Content is created by a

prosumer

Content is created by a professional

Analysis of content

consumed

Sell content

Data-driven workflow

orchestration

Advertising effectiveness

Distribute content

Curate content

Store, edit, transcode

content

Deliver advertising

Connect audiences +creators 1:1

Share content

Run real-time profitability

reports

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HOW DOES IT ALL COME TOGETHER? – EXAMPLE

Once the customer becomes a subscriber, the media company continues to capture, analyze, and leverage such data as the customer account profile, payment preferences, viewing habits, and service disruption history, to refine the consumer’s experience.

This consumer-centric media example is relevant to subscription-driven, advertising-driven, or commerce-driven revenue models, because, with digital media, each user interaction is captured and can be analyzed to make an offer or recommendation in real time.

The benefits of this scenario are significant:• Reduction in campaign spend to acquire customers• Increase in campaign response and uptake• Increased lifetime value of a customer• Decrease in churn• Higher ad rates driven by a well-defined and targeted

audience set

Digital media give consumers the choice and freedom to stream an individual program at any time they want. Consumer-centric media use technology to listen to sentiment, analyze preferences, and understand individual relevance, turning these insights into tailored offerings of compelling value.

DIGITAL BUSINESS SCENARIO FOR CONSUMER-CENTRIC MEDIA

Example: Consumer-centric media

The process flow shown on this page illustrates one of many possible media customer journeys. The honeycomb shows process steps beginning with expressing initial interest in a piece of content, to engaging with the content, signing up for a subscription, expressing sentiments, transacting in commerce, and finally resolving service disruption issues. At every step, the customer’s interaction with content, commerce, or customer service provides rich user behavior data that informs the media or content distributor to help analyze and better understand the consumer or audience.

The customer-centric media company typically begins gathering data from customers as identified, but anonymous, entities. With each subsequent visit and more content engagement, the media company builds a profile about that customer and further personalizes the content to be more relevant, which further encourages the customer to return and eventually become a subscribing customer.

Data-driven flexible core

Time

Superior consumer experience

Supplier collaboration

Customer complains

about service disruption

Service agent grants free

content

Customer orders

via portal Additional

recommend-dations

determined

Offer sent

Consumer registers

for the trial package

Offered a trial subscription

Customer consumes

content

Consumer expresses interest in new show

Itemized invoice sent

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HOW TO START

THE JOURNEY TO THE DIGITAL MEDIA NETWORK BEGINS WITH A CAPABILITY ANALYSIS THAT RESULTS IN THE TRANSFORMATION AGENDA

- 24 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

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HOW TO START

1. Strategy alignment: Understand company and SAP strategic direction and identify initiatives

2.Opportunity assessment: Opportunity deep-dive based on strategic initiatives and prioritization based on value

3.Solution road map and ROI: Document end-state solution, and business case including benefits, TCO, ROI, and strategic road map

4.Value realization: Deliver transformation on time, on budget, and on value

5.Governance: Maximize investments and accelerate value creation with governance based on executive engagement, value delivery, and continuous innovation

THE JOURNEY TO THE DIGITAL MEDIA NETWORKThe journey to define future business models capitalizing on the digital media network involves all disciplines of a modern media firm and requires an innovative approach to identify and capture business opportunities.

THE COLLABORATIVE VALUE AND INNOVATION FRAMEWORKMedia companies embarking on the transformation journey to the digital business need to reimagine their business with a focus on outcomes and customers. This is easier said than done, but is best started with a defined set of questions:• What role will we play in the digital media network, and how do we drive competitive advantage?• How will we make money?• What is our innovation agenda and how do we start?

For innovation today, a new level of collaboration is required. As a result, we have developed a framework that will be a continuous and holistic partnership model designed to drive true collaboration and engagement. Outlined below are the five steps of SAP’s collaborative value and innovation framework:

5

GOVERNANCE

4

VALUE REALIZATION

3

SOLUTION ROAD MAP AND ROI

2

OPPORTUNITIES ASSESSMENT

1

STRATEGY ALIGNMENT

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WHY SAP?

SAP ENABLES THE DIGITAL MEDIA NETWORK WITH THE DIGITAL CORE, BUSINESS NETWORKS, SUPPLY CHAINS, AND THE INTERNET OF THINGS

- 26 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

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SAP IS COMMITTED TO INNOVATION

Vision

Mission

Strategy

Help the world run better and improve people’s lives

Help our customers run at their best

Become the cloud company powered by SAP HANA

CONNECTED DEVICES AND BIG DATA

We believe that the ability to harness the power of data and put it into context is at the heart of most of the digital era business models. We are working with major international media companies as well as start ups to impact their business in significant ways.

Working with SAP, one major media company is powering its presidential election polling tools for data-driven story telling.

BIG DATA IN SPORTS

The National Basketball Association (NBA) has standardized in-game tracking technology in all 30 of its arenas. Using six cameras the system tracks the movements of every player on the court and the basketball 25 times per second, the data collected provides a plethora of innovative statistics based around speed, distance, player separation, and ball possession.38

WALMART DATA CAFE

Walmart is an SAP HANA Innovation Award winner, recognized for its Data Café that breaks down data silos, providing a single enterprise-wide view of timely information for a large cross-section of operational staff looking to resolve daily issues. 37

GLOBAL PRESENCE AND

RELEVANCE

DIGITAL ECONOMY

- READY

INNOVATION LEADER

• Media solutions since 1994 for subscription, advertising , rights management

• 83% of media companies in the Forbes Global 2000 are SAP customers

• SAP customers deliver more than 74% of radio and TV broadcasting content worldwide

DIGITAL MEDIA

ENABLED BY SAP

• 80 million business cloud users

• 1.9 million connected businesses

• $800 billion+ in B2B commerce

• 99%+ of mobile devices connected with SAP messaging

• 75K employees representing 120 nationalities

• 295K customers

• SAP operates in 191 countries

• Solutions for 25 industries and 12 LoBs

• 98% of top valued brands are our customers

• 74% of the world’s transactions managed on SAP

• 2011 SAP HANAlaunched

• 2012 SAP Cloudlaunched

• 2014 SAP businessnetworks are the largest marketplace in the world

• 2015 SAP HANA Cloud Platform

• 2015 SAP S/4HANA: Most modern ERP system

INDUSTRY ANDLOB FOCUS

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CREATE COMPETITIVE ADVANTAGE THROUGH INNOVATION

SAP will bring simplification, innovation, and acceleration required to support the development of your digital business strategy. These capabilities will be leveraged throughout SAP’s collaborative value and innovation framework.

Create a single, harmonized experience for your customers while reducing the burden on employees.

Orchestrate business processes across marketing, commerce, sales, services, and billing

Be prepared to engage your customers on the channels they choose at any moment in their journey

Full integration with your core business processes provides a single services platform for interacting with your clients

Predict and respond to opportunities with predictive analytics solutions powered by SAP HANA.

Implement outcome-based business models for greater customer value

Digitize expertise for effective use of global talent

Enable digital service execution to automate and scale previously people-intensive processes

Connect service brokers and networks leveraging alternative staffing models

Use SAP HANA Enterprise Cloud to enable talent, suppliers, and customers to connect and collaborate.

Connect mobile users to enterprise data on customers, accounts, and services, giving access to the information they need

Process and optimize data on customers and assets across all operating units and legal entities with SAP HANA in the cloud

Adopt and apply analytics solutions through the cloud

ACCELERATESIMPLIFY INNOVATE

END-TO-END DIGITAL BUSINESS SOLUTION

Public cloud

Private managed

cloud

On premise

SAP HANAMarketplace

Partners | ISVs | Startups

Business-to-business collaboration

World-class user experience

Powered by SAP HANA

Create and build

Store and aggregate

Orchestrate and govern Analyze and predict

Go mobile and secure

Core operations

Customer-centricity

ITHR ProcurementFinance

Risk and finance management

Partner collaboration

Industry capabilities

Line-of-business solutions

People-to-people collaboration

Digital Core WorkforceEngagement

SAP Fiori

Supplier CollaborationBusiness Networks

CustomerExperience Omnichannel

Assets,& the Internet of Things

SAP HANA Cloud Platform

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SAP GLOBAL SERVICES AND SUPPORT TO DRIVE YOUR SUCCESS

In the digital economy, simplification and business innovation matter more than ever. SAP has a broad range of services to cover the end-to-end digital transformation journey, ranging from advising on a digital innovation road map and plan, to implementing with proven best practices, to the ability to run across all deployment models, and ultimately optimize for continuous innovation across your digital journey. SAP provides both choice and value within our services, allowing you to tailor the proper approach based on your needs.

Turn to the 30,000 consultants and support professionals who can bring your digital strategy to life. Global Service & Support (GSS) provides a consistent experience – on premise, cloud, or

hybrid. GSS provides the expertise, assets, and the proven methodologies required to accelerate business innovation, reduce TCO, and run a stable platform (on premise or in the cloud).

SAP Activate is a new, simplified consumption experience introduced for SAP S/4HANA and cloud adoption. It provides a combination of SAP Best Practices, methodology, and guided configuration. In addition, we provide leadership in learning to drive quick time to value realization and a solid engagement foundation with SAP MaxAttention, SAP ActiveEmbedded, and SAP Value Partnership across the end-to-end customer lifecycle.

Learn | Extend / Innovate | Engagement Foundation | Support

ADVISE

Simplify and innovate• Digital innovation

Road map and plan

• Co-innovation by industry

IMPLEMENTwith proven best practices

Implement with SAP Activate• Simplified consumption

experience for SAP S/4HANA

• SAP Best Practices, methodology, and guided configuration

RUN all deployment models

Run with one global support• One global, consistent

experience• End-to-end support – on

premise, cloud, hybrid

OPTIMIZEfor continuous innovation

Optimize to realize value• Continuously capture and

realize benefits of digital transformation

Global Service & Support provides the expertise, assets, and proven methodologies required to accelerate business innovation, reduce TCO, and run a stable platform

(on premise, in the cloud, and hybrid)

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Our comprehensive ecosystem offers:

• A wide range of business services (OEM suppliers, data and content providers)

• Open architecture: choice of hardware and software

• Complementary and innovative third-party solutions

• Reach – partners to serve your business of any size, anywhere in the world

• Forum for influence and knowledge

• A large pool of industry experts with broad and deep skill sets

Our partner ecosystem includes, among others:

SAP COMPREHENSIVE ECOSYSTEM

Orchestrating the world to deliver faster value

• 1,900+ OEM solution partners to extend SAP solutions

• 2,000 startups developing SAP HANA apps

IMPLEMENTATION SERVICES

CHANNEL & SME

INFLUENCE FORUMS & EDUCATION

• 32 user groups across all regions

• 40+ industry councils including SAP Advisory Council for Life Sciences

• SAP community >24 million unique visitors per year

• 1,800 SAP University Alliances

• 4,800 overall channel partners

PLATFORM & INFRASTRUCTURE

• 1,400 cloud partners

• 1,500+ platform partners

INNOVATION

• 1.8 million suppliers

• 200 major travel partners (air, hotel, car)

• 50K service and contingent labor providers

BUSINESS NETWORK

DRIVING CUSTOMER

VALUE

• 13,000 partner companies

• 3,200 service partners

• Delivering 1,300+ industry-specific solutions

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1. The Many Faces of SAP at Apple, YouTube video: Part I: https://www.youtube.com/watch?v=PaSVHvHEbQkPart II: https://www.youtube.com/watch?v=XcA1X6Jf7_Q

2. Digital Transformation: How Netflix changed the game. OpenForum March 2015https://openforum.hbs.org/challenge/understand-digital-transformation-of-business/why-digital/digital-transformation-how-netflix-has-changed-the-game

3. Skyrock.com: Monetizing Social Network with SAPhttps://dam.sap.com/dam-ws/download?id=Po85r5%2FrLOCEGidqu77v552Fu%2F9iSFeZBYzjftdIAtJ%2BC53J7zeT88fRKH4c5MgE

4. Condé Nast Global E-Commerce, Condé Nast International 2015 http://www.condenastinternational.com/initiatives/cond%C3%A9-nast-global-e-commerce/

5. The Glass to Glass Internet Ecosystem task force W3C.org, 2011 https://www.w3.org/2011/webtv/wiki/GGIE_TF

6. Game Changer, A new kind of value chain for entertainment and media companies, pwc, Dec 2013https://www.pwc.com/us/en/industry/entertainment-media/publications/assets/pwc-value-chain.pdf

7. The Digital and Traditional Media Divide is Irrelevant Among Consumers, PwC, June 2015 http://www.pwc.com/us/en/press-releases/2015/digital-and-traditional-media-divide.html

8. Global entertainment & media Outlook 2015-2019, pwc, 2015http://www.pwc.com/gx/en/industries/entertainment-media/outlook/hot-topics/four-forces.html

9. Condé Nast Turns Style.com Into E-Commerce Site. Vogue News, April 2015http://www.vogue.co.uk/news/2015/04/27/style-com-conde-nast-ecommerce-platform-announcement

10. Worldwide pay-TV Subscribers to Exceed 1.1 Billion in 2019 with increasing IPTV market share, ABI Research, Jan 2014 https://www.abiresearch.com/press/worldwide-pay-tv-subscribers-to-exceed-11-billion-/

11. Global OTT TV & Video Forecast, Digital TV research, June 2015: https://www.digitaltvresearch.com/products/product?id=122

12. Live streaming: the next Big Thing in digital marketing. Eye for travel, April 2015http://www.eyefortravel.com/social-media-and-

marketing/are-live-streaming-video-apps-next-big-thing-social-media

13. Daily Online Video Usage Statista 2014: http://www.statista.com/statistics/319688/daily-online-video-usage/

14. Netflix CEO on the TV Industry, Buisnessinsider.com 2015: http://www.businessinsider.com/netflix-ceo-on-the-tv-industry-2015-4?IR=T

15. ProSiebenSat.1 expands e-commerce activities DigitalTVeurope Oct. 2015: http://www.digitaltveurope.net/441651/prosiebensat-1-expands-e-commerce-activities/

16. The new media boys on the online travel block, eye for travel, Jan. 2016 http://www.eyefortravel.com/distribution-strategies/new-media-boys-online-travel-block

17. YouTube Will Soon Be Able to Make Any Video Shopping-Enabled, Variety Sept. 2015 http://variety.com/2015/digital/news/youtube-shopping-ads-videos-1201605533/

18. AJ+ passes on billion milestone DigitalTVEurope Oct. 2015: http://www.digitaltveurope.net/441711/aj-passes-one-billion-milestone/

19. SAP Benchmarking

20. SAP Benchmarking

21. SAP Benchmarking

22. “2014 Global Consumer Barometer Index, American Express and Ebiquity”, 2014, http://about.americanexpress.com/news/docs/2014x/2014-Global-Customer-Service-Barometer-US.pdf

23. SAP Benchmarking

24. “Workforce 2020: Building a strategic workforce for the future” Oxford Economics, 2014, http://www.oxfordeconomics.com/workforce2020

25. “The Changing Landscape of the Flexible Workforce - And Why Procurement Should Care, San Francisco Bay Area Symposium November 12, 2014, page 5” http://sig.org/docs2/The_Changing_Landscape_of_the_Flexible_Workforce_-_And_Why_Procurement_Should_Care_-_Fieldglass.pdf

26. Case Study: Hasbro Re-Imagines its Career Website to Deliver an Exceptional Candidate Experience. http://www.successfactors.com/en_us/download.html?a=/content/dam/successfactors/en_us/resources/case-studies/hasbro-cs.pdf

27. SAP XM white paperhttp://sapexchange.media/

28. SAP Ariba estimates

29. SAP Ariba estimates

30. SAP Ariba estimates

31. Leading Information Service provider Drives 30% Growth and 99% Account Retention, Ariba Case Study, 2014 https://www.ariba.com/assets/uploads/documents/Case%20Studies/EBSCO-Information-Services.pdf

32. Building the Networked Business of the Future, SAP Insider, April 2015 http://sapinsider.wispubs.com/Assets/Articles/2015/April/SPI-building-the-networked-business-of-the-future

33. Internet Users Surge to Almost 3 Billion Worldwide, Time, November 2014 http://time.com/3604911/3-billion-internet-users/

34. EMC World 2015: 30 billion connected devices by 2020, ITPro, 2015 http://www.itpro.co.uk/storage/24560/emc-world-2015-30-billion-connected-devices-by-2020

35. “Over 80% of Companies Increased Revenue by Investing in Internet of Things.“ TCS Study, 2015 http://www.tcs.com/news_events/press_releases/Pages/Internet-of-Things-TCS-Global-Trend-Study-2015.aspx

36. “SAP Fiori UX: It Is Not a Matter of If, but When and How” Gartner, 2015: http://www.gartner.com/technology/reprints.do?id=1-2DLGQFP&ct=150415&st=sb

37. HANA powers Walmart‘s Data Cafe https://ideas.sap.com/D25974Walmart runs SAP HANA, Karenann Terrel, CIO, Walmart Stores, Inc 32https://www.youtube.com/watch?v=U2XWtb9rWGI

38. “A Whole New View” http://stats.nba.com/featured/whole_new_view_2013_10_29.html

Note: All sources sited as “SAP” or “SAP benchmarking” are based on our research with customers through our benchmarking program and/or other direct interactions with customers

Note: Some images used under license from Shutterstock.com

ADDITIONAL RESOURCESOutlined below is additional external research that was used as supporting material for this white paper.

Page 32: Attention: The New Oxygen for Digital Media Inspire and shape · New Oxygen for Digital Media Inspire and shape a digital world that reinvents content consumption and ... Spotify,

- 32 -SAP Digital Media Whitepaper (01/16) © 2016 SAP SE. All rights reserved

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