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© 2016 SAP SE or an SAP affiliate company. All rights reserved. Reimagine Business Processes | A step change in productivity and customer experience with new digital technologies 1

DIGITAL INNOVATION DEMYSTIFIED

October 2016

BUSINESS PROCESSESA step change in productivity and customer experience with new digital technologies

© 2016 SAP SE or an SAP affiliate company. All rights reserved.Reimagine Business Processes | A step change in productivity and customer experience with new digital technologies 2

TABLE OF CONTENTS

Introduction

Paradigm Shift for Value Creation

Business Value from New Technologies

Five Capabilities Through Business Process Innovation

Customer Experience

Real-Time Business

Predictive Insights

Cross-Enterprise Collaboration

Artificial Intelligence & Automation

Key Takeaways

Application Architecture

Enterprise Architecture

References

3

4

6

7

8

10

12

14

16

18

19

20

21


DR. CHAKIB BOUHDARY

Digital Transformation Officer SAP

“

“

Best-run businesses are on a never-ending quest to drive profitable revenue growth, enhance customer experience, improve productivity, and manage risk. However, this pursuit has resulted in increased business complexity. According to a BCG study, the “index of complicatedness” increased by an average of 6.7% a year over the past five decades.1

All this complexity leads to an adverse impact on productivity. Adoption of the first wave of technology, such as ERP, productivity tools, and Internet, contributed to healthy growth in global total factor productivity (TFP) of 1–1.5% per annum in the 1990s and early 2000s.2 However, increased complexity from the proliferation of products and services, regional coverage, M&A, and regulations has driven productivity down to an average 0.5%

CAGR from 2007–2012. This figure has stayed near zero since then.3 At less than 1% global productivity growth, future generations will be be affected by lower output and poorer living standards if the current trend is not reversed.

However, there is good news; many new, innovative technologies,

such as in-memory computing, the Internet of Things (IoT),

artificial intelligence (AI), and virtual reality, are reaching a stage

of maturity where they can drive innovation and create significant

value. It’s therefore time for fresh thinking to manage this

complexity and reimagine everything – processes to deliver

innovative products and services, real-time management of

assets and risk, and profitability optimization at a transaction

level.

This document explains the different ways companies are

leveraging digital technology to achieve the above objectives,

unleash significant business value, and implement in a non-

disruptive manner. All the customer examples highlighted in this

document are driven by SAP® technology.

Every business process needs to be reimagined to drive a step change in productivity and customer experience

Hasso Plattner Chairman of the Supervisory Board of SAP SE

To stay at the head of their industries, companies need to minimize the time from observing signals in the market and in their organization to acting on these signals.


In-memory computing

With standardized solutions, such as business networks, businesses can

innovate faster and efficiently manage master data complexity.

A key enabler for an always-on business, mobility drives anytime,

anywhere access to information and workflows to serve an always-on

customer.

Bringing transactions and analytics together on a single

platform, businesses can run in real time and optimize

processes.

Cloud Mobility

Not only are technologies such as in-memory computing, AI, and IoT now highly viable, they are also

affordable. The return on investment (ROI) on these technologies is very attractive. The key question

today is how we apply these technologies to drive business value, manage complexity, and reverse the

negative TFP trend we have seen over the last decade. It all comes down to business leaders’ ability to

unleash the power of innovation.

DIGITAL TECHNOLOGIES ARE DRIVING AN UNPRECEDENTED WAVE OF INNOVATION

Fresh thinking is required if we are to take advantage of new technologies. We have a lot to learn from

digital natives, such as Uber, Google, and Airbnb. Below are some considerations for companies as they

begin reimagining their business processes and, ultimately, their business model.

A PARADIGM SHIFT IS REQUIRED FOR STEP CHANGE IN VALUE CREATION

Data is the new center of gravity

Digital innovation will be data driven. In the past,

business applications were the “kings,” and data

was the servant. That relationship is now reversed.

Customer experience drives strategy

Customer experience across every touch point

should drive a company’s overall strategy.

Reimagining that experience through a design

thinking approach is becoming a key competitive

advantage.

Speed matters

New enterprise architecture should be focused on

simplification across all technology layers – one

single data model for every company asset, no

more than two or three applications per $1 billion in

revenue (today’s average is 25–504), and more

focus on innovation, leveraging micro-services and

agile development. “Good is enough” should drive

most decisions to enable speed to market.

Smart business starts with smart decisions

Executing business transactions flawlessly and

consistently is no longer sufficient. Companies

need to optimize the decisions that drive

transactions. Ultimately, the decision and the

transaction need to work hand in hand.


A PARADIGM SHIFT IS REQUIRED FOR STEP CHANGE IN VALUE CREATION

Trust in the new currency

Data is powerful in helping companies run better

and faster. Managing data privacy and

implementing robust cybersecurity tools and

processes are becoming paramount. Your

customers need to trust you with their data, and

you need to trust the data to run your business.

Everything should be measured in cycle time

Ultimately, every business process needs to run in near

real time. When the cycle time from insight to execution is

close to zero, enormous efficiencies can be achieved. This

cycle time also includes transactions and sharing of data

with business partners.

While the above seems obvious, “corporate cholesterol” can get in the way. Many companies have too

many processes and procedures that slow progress and innovation when compared to more agile digital

natives. The older the company is, the more cholesterol it has accumulated. But there is hope – the

value created by these technologies is so significant, it justifies more risk taking and more investment in

business innovation.

allow businesses to employ autonomous machines on top of

the data, making processes smarter and transactions faster,

freeing up resources for more strategic activities.

is revolutionizing the movement and storage of

value by creating a chain of unaltered transactional data.

Blockchain Augmented realityis the integration of digital information with the user's

environment in real time. It differs from virtual reality, which creates a

totally artificial environment.

brings the intelligence of the external world to business, enabling

it to create new value and/or enhance value from within the

countless connections all around.

Internet of Things Artificial intelligence

DIGITAL TECHNOLOGIES ARE DRIVING AN UNPRECEDENTED WAVE OF INNOVATION


THE BUSINESS VALUE IS TOO GREAT TO IGNORE. IMAGINE IF YOUR COMPETITOR ACHIEVES THESE RESULTS FIRST.

Technology is only as good as the value it delivers, from helping companies grow revenue and profit, to

managing risk, and improving productivity and return on assets. If all of these value dimensions can be

impacted in a significant way, embracing new technologies becomes more that just a choice. Executives

have the responsibility to learn more about new capabilities, identify the best fit for their company, and

dedicate resources to the exploitation of the new capabilities.

The chart below shows that early adopters of new technologies and the paradigm shift associated with

these technologies are changing the game across industries and delivering higher value. Most

companies are at a very early stage of adoption. Of the companies surveyed, less than 30% leverage

digital technologies and capabilities that improve processes, engage talent across the organization and

drive new value generating business models.5

INNOVATIONPRODUCTS, SALES, AND SERVICES

ASSETS AND RESOURCES

PEOPLE

Source: McKinsey; derived from SAP customer experience6

3–20% increase in revenue from omnichannel

10–20% reduction in quality cost

85% increase in

forecasting accuracy

20–50% reduction in time to

market

10–20% increase in revenue from new products

20–30% reduction in R&D cost

10–40% reduction in

maintenance cost

30–50% reduction in total

machine downtime

20–50% reduction in inventory

carrying cost

25–50% improvement in shared services

productivity

45–55% productivity

improvement for technical professions


4. CROSS-ENTERPRISE COLLABORATION

5. ARTIFICIAL INTELLIGENCE & AUTOMATION

1. CUSTOMER EXPERIENCE

Connecting workforce, suppliers, and systems in a seamless manner to

innovate and serve customers better

Providing products, services, and information tailored to

customers at the time and the place of their choice

Streamlined operations through integrated workflows, connected assets, and complete automation or significant

reduction of tasks driving business optimization

2. REAL-TIME BUSINESS

Using live information from diverse sources, independent of location and device, to instantaneously sense and

respond to demand signals

3. PREDICTIVE INSIGHTS

Institutionalizing the power of foresight and simulation to drive

proactive decisions, reduce latency, and increase profitability

As we studied how value is created, we identified five capabilities that have been applied to business processes. These capabilities are not exclusive, and companies may use them in a variety of combinations to achieve value.

Digital capabilities for business process innovation


Digital technology has changed the game, but customers changed the rules. Business models

are being redefined by the customer experience, and it is changing the way companies design

products, deliver services, and protect and grow their brand value. The customer experience

benchmark, regardless of industry, is set by digital leaders such as Amazon and Google. It is

efficient, personalized, driven by transparency, and totally secure. CEOs across all industries

are rethinking the customer experience and asking the following questions:

• How do I develop digitally enabled products and services to enter new markets?

• Do I need to disrupt my current business model to stay relevant (e.g., pay for outcome, digitize products and services, etc.)?

• Is my technology infrastructure sufficiently agile to satisfy ever-changing customer needs?

• How do I redefine my brand to stay relevant in a digital economy?

• Is my company culture centered around customer experience and digital innovation?

Delight customer at every touch point of their journey from product search to order to delivery to post sale service

CUSTOMER EXPERIENCE

01

Brookshiresis reinventing its promotional

strategies and gaining a competitive edge in its market with a digital loyalty

program. It leverages customer-specific sales information through its

mobile app to offer personalized promotions and services. The retailer also intends to send targeted offers to

in-store customers through the app and offer in-aisle targeted discounts using geo-fencing. Through better

forecasting and a more personalized shopping experience, They were able to

increase sales and margin effectiveness of planned promotions.7

A Beverage Companyleverages a cloud solution to serve as an

innovation platform for handling the entire buying cycle: pricing, quotes, and orders. It pulls information about its customers from external sources such as social media and

supports a “segment of one” (personalized) strategy for better customer engagement.

A single, simplified, and optimized view of its customers across all channels and systems, irrespective of connection method, enables

better visibility across the entire customer engagement cycle, higher

sales productivity, and greater penetration into new markets.8


Customer experience key elements

Asian Paintstransformed its business model from selling paints to selling an

experience, helping people beautify their homes. Combining the power of the

digital platform and peripheral customer-centric and innovative

applications, it can more precisely target customers with personalized

offers in real time. This transformed its processes with 45x faster marketing,

sales, and service processes,and a 20–30% call center

productivity increase.9

Superior customer experience is no longer just about omnichannel capabilities, real-time pricing,

and digital marketing. Companies also have to digitally enable their products and services, optimize

every customer touch point, and potentially rethink their business model. To drive sustainable,

profitable growth, companies are rethinking their customer experience across four key dimensions,

all of which are highly dependent on new digital technologies.

• Personalization

Businesses are moving from “mass everything” to “personalized everything” in manufacturing, healthcare, education,

etc. An integrated view of the customer’s personal data allows businesses to develop targeted messaging and offer

tailored products and services using data analytics, agile and additive manufacturing, and AI. Personalization can range

from custom treatment through genome analytics, to learning plans based on student preferences, and lifestyle

products aligned to personality traits.

• Convenience

Customers are willing to pay more for convenience. Modern technology has provided a variety of tools for bringing goods

and services closer to the customer. Mobility, omnichannel capabilities, and 3D printing allow complete access, anytime

and anywhere. Online shopping, mobile banking, and online payments for government services such as a driver’s

licenses and passports are just a few examples of increased convenience.

• Customer Journey

Companies need to optimize every touch point with their customers, from product search, to placing an order, to

delivery, to post-sale service. Smart analytics, predictive capabilities, and real-time business (supply chain,

manufacturing, and back office) can give a 360-degree view of the customer. For example, fashion companies are

integrating the whole value chain from manufacturing, to distribution, to store to deliver a seamless experience for their

customers, increase revenue, and drive brand loyalty.

• Pay for Value

Customers’ demands are driving businesses to move beyond selling products and services to charging for measurable

value and reducing consumer risk. IoT, hyperconnectivity, and Big Data enable companies to take complete ownership

from design to retirement. For example, insurance companies can now insure customers for specific needs, engineering

companies can charge for tonnage of minerals produced, and software companies are packaging the total stack into an

end-to-end cloud solution.

A U.S. Pizza Company

implemented an e-commerce and digital marketing platform where customers can personalize and order their pizza online.

The omnichannel strategy helped the company boost its online sales to 10% of

total revenue through faster customer adoption. They expect revenue to grow by 20% in the very first

year of implementation.10


Working in real time is a paradigm shift for every business process. It allows any business to be

lean and agile, sensing and responding to changes as they occur. When process transaction

time can be shrunk to milliseconds, there is additional time available to bring in additional data,

use analytics, and run simulations and algorithms before making a decision. With transactions

and analytics on the same platform, powered by SAP HANA, enterprise decisions can be

smarter than ever before. To understand the impact of real-time capabilities, consider these

questions:

• How would I run my business if cycle times were cut by more than half?

• What kinds of innovations could I accomplish if I eliminate manual processes?

• What insights and technologies can I embed at the time of decision making?

• Which analytical tools do I need to provide digital dashboards to executives?

• How would real-time capabilities allow me to change my business model?

REAL-TIME BUSINESS

Empower executives to make smart decisions in real-time leveraging insightful data at their finger tips

02

Hamburg Port Authority (HPA)

keeps traffic and trade flowing smoothly with its smart port logistics program by gathering

real-time data from HPA, transport companies, parking providers, and other businesses across the port. This data is

consolidated and analyzed to deliver actionable insights to the right people,

anytime, anywhere. The resulting benefits include a doubling of cargo handling

capacity, higher throughput for freight forwarders, and reduced wait time for

drivers.11

Spirit Aerosystemsmeets customer demands and improves throughput while minimizing additional

capital investment with real-time insight in its value chain and workflows. They are

able to get real-time insight into actual costs, which allows for better human

resource allocation.

Benefits include 40% overtime cost reduction, 25% expected production flow

time reduction, and 30% assembly inventory level reduction.12


Real-time business key elements

Faureciatransformed its operations by eliminating manual processes, accelerating material

requirements planning (MRP), and delivering real-time insights. MRP runs,

covering thousands of complex variants and product combinations, now take less than an hour, compared to more than 20 hours previously required. This has helped the company achieve tremendous savings in stock reductions and has vastly improved

on-time deliveries. The company is also able to meet its target margins by factoring in

profitability data from a variety of sources across the product lifecycle.14

Real-time business processes are more efficient, transparent, and help companies develop more

effective customer, operational, and risk mitigation strategies. Digital technologies enable a

seamless exchange of information and communication of action in real time for faster and better

decision making. The entire ecosystem of suppliers, enterprise core, and back-end and front-end

functions is able to work as a single unit and focus on one common goal: a better customer

experience.

• Reduction in Cycle Time

With the adoption of technology such as AI, virtual reality, and 3D printing, certain process steps can be automated or

completely eliminated, dramatically reducing cycle time. Financial books can now be closed in days, not weeks. Highly

responsive supply chains can produce and distribute personalized products with shorter lead times and smaller runs.

The redesigned processes allow companies to respond quickly to their customer needs and serve them better.

• Smarter Business

In-memory computing enables companies to bring analytics and transactions together on the same platform. The

combination of real-time data and simulation capabilities provides insights to make the right decision. Executing the

right transaction based on the right decisions results in smart business. For example, a sales person can optimize

profitability at the time of taking the order by selecting the right warehouse and the logistics partner to ship the product.

• Optimized Business

Digital dashboards can now provide full visibility into the business by leveraging analytical tools and real-time data. This

helps executives and business managers identify key issues and potential risks and take appropriate actions. These

dashboards allow users to drill down into the data at any level of the organization and enable employees to collaborate

more efficiently.

• Innovation with Agility and Speed

Using open APIs, companies can develop their own micro-services in the cloud to quickly develop innovative products

and services. The modern enterprise architecture leverages the power of data (structured and unstructured) by bringing

it onto one platform. This provides a significant competitive advantage by dramatically reducing time to market.

Seoul National University Bundang

Hospital

continually elevates its world-class

standards for medical science, education, research, and patient care by analyzing Big Data in real time. It built a clinical in-memory data warehouse to

support real-time clinical and treatment analysis. SNUBH was able to create fully

digitalized paperless operations and achieve an 80% reduction in preventive antibiotics use.13


Supercomputing has made it possible to analyze vast amount of data (both structured and

unstructured) from varied sources to find trends and behaviors that are hard for humans to

perceive on their own. With advanced mathematical models (AI, machine learning, predictive

analytics) and low computing and data storage costs, companies can now leverage innovative

technologies that were once limited to a few industries with large IT budgets (wealth

management, military). It is now paramount for every executive to consider the following

questions as they evaluate the power of predictive capabilities:

• Where can I apply predictive technologies in my business for the greatest impact?

• How would predictive capabilities enable me to change my business model?

• Who are the internal and external stakeholders to partner with to act on the predictive insights?

• What technology and skills do I need to realize the potential of predictive technologies?

• Where can I drive change quickly and get quick wins with predictive capabilities?

03PREDICTIVE INSIGHTSMove from reactive to proactive way of managing business and optimize every process and improve profitability

??

?

Trenitaliadeployed a dynamic maintenance

management system. Data is continuously extracted through

onboard concentrators and analyzed in real time to detect problems before they happen.

Predictive maintenance has enabled the company to improve the quality of its services, maintain the highest

technological standards, and reduce maintenance costs

(expected about 8%).15

City of Buenos Aires (ARG)

uses weather data and 30,000 sensors in storm drains throughout

the city to predict and prevent damage to the system. It stepped up

its infrastructure by increasing its response rate to issues (from 1% in

2009 to 80% in 2014). All this resulted in a much better city with cleaner streets, clearer drains, and

greater safety for citizens and tourists.17


Predictive insights key elements

Technology only matters if it can deliver game-changing business value and improve the way a

company operates. We believe predictive technologies will impact every facet of the business.

Moving from a reactive to a predictive way of running enables companies to drive new benefits to

businesses and customers by uncovering new sources of value, driving agility in operations, and

identifying threats earlier. The following are examples of how predictive technologies are changing

how organizations optimize processes and improve profitability.

• Asset Management

Around-the-clock asset availability is critical for companies to be responsive in today’s fast-paced digital economy. Using

sensors and Big Data technologies, companies can now move from scheduled maintenance to predictive maintenance,

reduce cost by 10–40%,19 and reduce unplanned machine downtime by 30–50%.20 Asset-intensive industries can

leverage predictive capabilities to reduce capital expenditure and improve cash flows.

• Customer Behavior

Acquiring new customers is expensive, and retaining current customers is equally important. Better understanding

customer churn enables companies to proactively reengage at-risk customers and attract new ones. With predictive

tools, companies can analyze and anticipate the market situation to optimize supply and improve price elasticity.

Successful companies leverage structured and unstructured data using sophisticated predictive models to understand

individual customer behavior and the market as a whole.

• Supply Chain Optimization

Supply chain disruptions can be predicted by analyzing the enormous amount of transactional and non-transactional

data (e.g., weather) and finding trends using sophisticated mathematical models. With these foresights, companies can

significantly optimize their demand forecast and production planning. This can dramatically reduce waste and

unnecessary cost in inventory, production, and logistics.

• Disaster Management

Even the fastest reaction to accidents and natural disasters can at best minimize damage. Sensors, cloud technologies,

and advanced analytics have made predicting the occurrence of events – natural or man-made – both feasible and viable,

offering time to act before the event takes place. Flood monitoring, fraud detection, and smart traffic control are

examples of how predictive technologies can minimize and even eliminate damage.

A Large Bank in Africa was able to foresee

customer churn with 87% accuracy by using data from all

touch points. In this way, it optimizes its marketing and sales

programs to maintain its customer base while developing better products and services for its

prospects.18

McLarentelemetry systems track and

compare real-time analysis of car sensor data against both historical data and predictive

models. This helps the team to make immediate, proactive

corrections, avoid costly and dangerous incidents, and win

the race.16


04

Winning in a digital economy requires a deep relationship with your ecosystem of strategic

partners, one that is founded on the common goal of trust and value creation. Ecosystem

collaboration allows for speed to market, reduces the risk profile, and lowers the cost of doing

business. But collaboration works efficiently only when business partners interconnect their

business processes and operate with low friction, in real time. Companies should consider the

following questions:

• Which business partners can significantly enhance the value proposition to my customers?

• How do I choose partners that can provide products and services that complement mine?

• How do I share business benefits and risks with my partners who have the competency and assets to better support my business?

• How can technology help me do business with my partners in a frictionless way?

• How do I enable seamless collaboration in my new ecosystem?

CROSS-ENTERPRISE COLLABORATIONConnect workforce, suppliers, and systems in a seamless manner to innovate and serve customers better

Mohawkstreamlined the customer lead

process and deployed a seamless handoff to retail partners, helping

close deals more quickly. By integrating data for a better

understanding of customer needs, it could tailor products and services

to meet specific demands and improve customer service.21

RicohIn close collaboration with its customers, Ricoh uses its e-

commerce expertise to integrate its extensive catalogs on the

network with buyers' procurement systems. Being a supplier on the

network has grown Ricoh's customer base and empowers it to deliver user-friendly, customized

buying experiences with purchase order accuracy and automated

invoicing.24


The key to collaboration among partners is trust and a win-win situation with shared values and

mutual benefits and risks. Sharing information in a timely and transparent manner leads to higher-

quality offerings, operational agility, and lower cycle times. Cross-enterprise collaboration on the

following dimensions results in higher customer satisfaction and improved profitability.

• Supply Chain Execution

Companies must focus on their core competencies and outsource non-core functions to be competitive. The

non-core functions vary by industry and range from back-office, to logistics, to manufacturing. However, this

model requires multi-tier collaboration to take action on significant changes in customer demand, supply

chain disruptions, or any competitive moves that could impact the business environment.

• Cost Management

Business networks bring the world to your doorstep and allow you optimize your spend categories: direct,

indirect, services, contingent labor, and travel. They provide real-time visibility into enterprise requirements

and allow for an efficient source-to-pay process. Benefits are experienced on both sides of the partnership,

including a 15–20%25 reduction in procurement function costs and 5–10%26 contracted savings through

improved compliance.

• Financial Supply Chain

Better collaboration across the financial supply chain ensures a closed loop, as physical movement of goods

is promptly followed by the digital movement of money. Companies are now able to offer new products and

services and mitigate risk with their suppliers. They can especially help their smaller suppliers by providing

low-cost financing, paying them sooner, and helping them with their cash flow. Blockchain is a breakthrough

technology that will completely innovate the financial supply chain in the near future.

• Data Sharing to Achieve Common Goals

Hyperconnectivity and Industry 4.0 are driving an exponential increase in data from assets, customers,

transactional, and non-transactional systems, such as weather and geospatial. With real-time access to the

same data and transparent relationships, companies in the ecosystem can collaborate to monetize this data,

keep up with the latest market trends, and innovate. For example, by linking their systems, retailers can share

the point-of-sale data with the manufacturers and collaborate on the pricing and promotion strategy.

Cross-enterprise collaboration key elements

Roche Diabetes Care

enabled doctors and patients to monitor health indicators in real

time through the IoT (such as wearables) and interact in a timely

manner. The company offered value-added service on top of its

diabetes products, targeting high-risk patients and extending its business toward prevention.23

Cape Town,

South Africa, consolidates data from different state

divisions, data sources “on the ground,” and social media. By

sharing this data with the police department and other

emergency services, it can respond quickly, efficiently,

and even proactively to threats and incidents.22


ARTIFICIAL INTELLIGENCE & AUTOMATION

The interface between machines and people continues to blur. Humans still have a

competitive advantage in creative thinking, relationship management, and strategic decision

making, but machines dominate in precise, repetitive, and data-driven tasks. These forces

working together to improve human decision making and driving value with innovative

automation will be the new standard, but it is still new territory for even the most innovative

companies. Consider the following questions to evaluate potential areas for value creation:

• How do I design the machine-to-human interface to optimize collaboration?

• Where would I gain the most value and productivity through automation?

• Which processes are most prone to human error, and can it be avoided?

• What biases should be removed from my business with intelligent algorithms?

• How can I use technology to improve safety for my employees in high-risk functions?

05

Drive a step change in productivity from your employees and assets through seamless people and machine collaboration

MarencoSwisshelicopter

maintenance engineers are able to perform better using augmented

reality screens and simply pointing a smart camera at the faulty component. This allows the

technician to view the part in question (using 3D rotation, if

needed), gather all relevant information, and instantly trigger

a work order.27

A Large Consumer Products Company

leverages smart vending machines equipped with video cameras, facial

recognition software, wireless connectivity, and touch screens. This

enables it to trace customer habits and preferences and deliver personalized

offers. Sensors installed in the vending machine can also monitor the items

in stock and risks to product integrity and call a technician

if needed.28


People and machine collaboration key elements

SAP S/4HANA® Payment and Invoice

Matching improves process efficiency and service quality by integrating machine learning

capabilities into the accounts receivable workflow. The program automatically

learns from accountants’ actions, suggests open invoices to the incoming

payments, and can consistently improve. This substantially reduces labor costs per invoice and makes

for faster clearing.30

SAP® SuccessFactors® CV Matching

aids recruiters and hiring managers by filtering applications and selecting the most suitable

candidates using machine learning algorithms. CV matching mines

and parses resumes and job descriptions, generates key word clouds, and recommends the best

candidates for the role.29

Leveraging technologies such as robotics, AI, augmented reality, and voice recognition, processes

can run in a virtuous cycle of constant improvement fed by continuous feedback, thereby

becoming smarter over time. The resulting capabilities, such as greater visibility, remote access,

and more control, enable companies to optimize their operations in real time and deliver a better

customer experience.

• Smart Automation

Human and robot collaboration on the shop floor is helping drive higher throughput while ensuring safe operations.

Robots are becoming more affordable and intelligent through observation and interactions with humans. They are

gradually moving from simpler tasks, such as assembly, to more complex ones requiring cognitive capabilities, such as

driving and packaging. Additionally, 3D printing is making manufacturing on a small scale viable, more agile, and closer

to the customer.

• Business Without Bias

Humans rely on their experience and instinct in decision making, and the rate of success is mixed. Without any

predefined code or business rules, intelligent algorithms can approach the same challenges with objectivity. Self-

learning machines are capable of mimicking human actions, identifying patterns and exceptions, and providing

contextualized responses. This is specifically relevant in the hiring process and talent management, where emotions

often cloud judgement.

• Augmented Intelligence

Machines can provide contextual and relevant information in real time to optimize individual tasks and decisions. They

can be a knowledge partner that runs simulations, provides recommendations, and helps optimize every decision.

Machine-to-people collaboration will also increase with advances in augmented reality, smart wearables, and voice- and

gesture-controlled systems, making working environments safer and improving employee productivity.

• Automated Shared Services

The primary driver for the creation of shared services and business process outsourcing (BPO) was standardization and

labor cost arbitrage. With advanced machine learning, many back-office functions can now be automated. This will have

a positive impact on the cost structure of shared services and BPO providers and will change the way they work and

deliver services to their stakeholders.


KEY TAKEAWAYS

Digital business processes change the way we do business, deliver on promises, and generate value.

Capabilities such as predictive, real time, and collaborative processes should not be looked at

independently; when combined, they can be very powerful. If implemented the right way, these

capabilities can drive a step change in productivity and profitability of any business in any industry.

Speed matters. Companies can now adopt technology faster with cloud

solutions, accelerate innovation, and unlock business value

Business process innovation can be delivered with acceptable

disruption by leveraging new digital technology capabilities

Innovative business processes are mostly data driven; applications

go to the data instead of data going to different applications

Digital innovation requires adopting new way of thinking and

deploying new skill sets

Current business processes will evolve into mega-processes

spanning the entire value chain

Cybersecurity and data privacy are paramount in the end-to-

end integration of key business processes


4. CROSS-ENTERPRISE COLLABORATION

5. ARTIFICIAL INTELLIGENCE AND AUTOMATION

1. CUSTOMER EXPERIENCE

2. REAL-TIME BUSINESS

3. PREDICTIVE INSIGHTS

SAP SOLUTION PORTFOLIO FOR REIMAGINING BUSINESS PROCESSES

Over the past 43 years, SAP has led the market in standardizing and optimizing business processesacross 25 industries. Today, 74% of the world’s transactions run on SAP technology. Armed withdeep knowledge and a strong customer base, we are uniquely positioned to help our customers andprospects reimagine their business processes and unlock significant value.

SAP is the de facto standard for delivering an integrated suite of applications to manage customers,suppliers, employees, and assets. However, data is becoming a new asset in the digital economy andwill be at the center of every business transformation. We believe that businesses will succeed or failto a large extent on their ability to make innovative use of data to drive operational efficiencies,improve decision making, and open up entirely new revenue streams.

Since 2010, SAP has spent over $30 billion in acquisitions and innovation, such as in-memorycomputing with SAP HANA, advanced analytics, mobility, and cloud. With this new technologyplatform, SAP is enabling the five digital capabilities that are essential for business processinnovation.

• SAP Hybris solutions

• SAP S/4HANA

• SAP Digital Boardroom

• SAP HANA Cloud Platform

• SAP SuccessFactors solutions

• SAP BusinessObjects Analytics

• SAP IoT solutions

• SAP machine learningsolutions

• SAP machine learningsolutions

• SAP Ariba

• SAP Fieldglass solutions

• Concur

• SAP Jam


REFERENCES

1 https://www.bcgperspectives.com/content/articles/organization_design_engagement_culture_hbr_smart_rules_six_ways_get_people_solve_problems_without_you/

2https://www.cbo.gov/sites/default/files/113th-congress-2013-2014/workingpaper/44002_TFP_Growth_03-18-2013_1.pdf

3https://www.conference-board.org/retrievefile.cfm?filename=The-Conference-Board-2015-Productivity-Brief.pdf&type=subsite

4SAP Benchmarking Analysis

5http://sloanreview.mit.edu/projects/strategy-drives-digital-transformation/

6http://www.mckinsey.com/business-functions/operations/our-insights/industry-four-point-o-how-to-navigae-the-digitization-of-the-manufacturing-sector

CUSTOMER EXPERIENCE

7http://www.chainstoreage.com/article/brookshire-grocery-makes-marketing-personal-sap

8http://go.sap.com/about/customer-testimonials/retail/ulta-beauty.html,

9SAP Customer Experience

10http://go.sap.com/about/customer-testimonials/chemicals/asian-paints.html

PREDICTIVE INSIGHTS

15http://www.computerweekly.com/news/4500278251/Predictive-maintenance-brings-efficiency-to-Trenitalia

https://www.youtube.com/watch?v=583aGe0xIGY

16http://www.sap.com/customer-testimonials/automotive/mclaren-group.html

17https://www.sap.com/bin/sapcom/en_us/downloadasset.2015-04-apr-29-17.gobierno-de-la-ciudad-aut-noma-de-buenos-aires-staying-dry-with-help-from-sap-solutions-pdf.html


19 & 20SAP Benchmarking Analysis and McKinsey reports

CROSS ENTERPRISE COLLABORATION

21http://www.sap.com/customer-testimonials/mill-products/mohawk-industries.html

22http://www.sap.com/bin/sapcom/en_us/downloadasset.2014-10-oct-13-21.sap-hana-real-time-enterprise-stories-pdf.bypassReg.html

23http://sap-espresso.com/viewStory/502

24https://dam.sap.com/mac/preview/a/46/15fiuSivlAR0mFukiFFclFF75k0Rvg175lnFR7C0CDSknDlkSs/39688_BTS_39688_enUS.htm

25 & 26Derived from SAP Customer Experiences

REAL-TIME BUSINESS

11https://www.sap-customers.com/video/#/7258

https://dam.sap.com/mac/preview/a/67/UnxwgjwOwEJ6PlAJyeHlnwATxPOUxGmmJPX6wgmnE0xXlEJy/38060_BTS_38060_enUS.htm


13http://www.sap.com/customer-testimonials/healthcare/snubh.html


PEOPLE MACHINE COLLABORATION

27http://startupfocus.saphana.com/sap-teched-las-vegas-casinos-cloud-the-internet-of-things/

28http://discover.sap.com/machine-learning/en_us/index.html#

29 http://discover.sap.com/machine-learning/en_us/index.html#

30http://discover.sap.com/machine-learning/en_us/index.html#

https://www.bcgperspectives.com/content/articles/organization_design_engagement_culture_hbr_smart_rules_six_ways_get_people_solve_problems_without_you/

https://www.cbo.gov/sites/default/files/113th-congress-2013-2014/workingpaper/44002_TFP_Growth_03-18-2013_1.pdf

https://www.conference-board.org/retrievefile.cfm?filename=The-Conference-Board-2015-Productivity-Brief.pdf&type=subsite

http://sloanreview.mit.edu/projects/strategy-drives-digital-transformation/

http://www.mckinsey.com/business-functions/operations/our-insights/industry-four-point-o-how-to-navigae-the-digitization-of-the-manufacturing-sector

http://www.chainstoreage.com/article/brookshire-grocery-makes-marketing-personal-sap

http://go.sap.com/about/customer-testimonials/retail/ulta-beauty.html

http://go.sap.com/about/customer-testimonials/chemicals/asian-paints.html

http://www.computerweekly.com/news/4500278251/Predictive-maintenance-brings-efficiency-to-Trenitalia

https://www.youtube.com/watch?v=583aGe0xIGY

http://www.sap.com/customer-testimonials/automotive/mclaren-group.html

https://www.sap.com/bin/sapcom/en_us/downloadasset.2015-04-apr-29-17.gobierno-de-la-ciudad-aut-noma-de-buenos-aires-staying-dry-with-help-from-sap-solutions-pdf.html

http://www.sap.com/customer-testimonials/mill-products/mohawk-industries.html

http://www.sap.com/bin/sapcom/en_us/downloadasset.2014-10-oct-13-21.sap-hana-real-time-enterprise-stories-pdf.bypassReg.html

http://sap-espresso.com/viewStory/502

https://dam.sap.com/mac/preview/a/46/15fiuSivlAR0mFukiFFclFF75k0Rvg175lnFR7C0CDSknDlkSs/39688_BTS_39688_enUS.htm

https://www.sap-customers.com/video/#/7258

https://dam.sap.com/mac/preview/a/67/UnxwgjwOwEJ6PlAJyeHlnwATxPOUxGmmJPX6wgmnE0xXlEJy/38060_BTS_38060_enUS.htm

http://www.sap.com/customer-testimonials/healthcare/snubh.html

http://startupfocus.saphana.com/sap-teched-las-vegas-casinos-cloud-the-internet-of-things/

http://discover.sap.com/machine-learning/en_us/index.html




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