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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 1 Confidential Customer Experience and Digital Transformation 8 th November, 2016 Dae Young, Chung Ph.D / Head of Presales SAP Korea

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  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 1Confidential

    Customer Experience and Digital Transformation

    8th November, 2016

    Dae Young, Chung Ph.D / Head of Presales

    SAP Korea

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Confidential

    50%

    Natural occurring churn

    every 5 years

    4%

    Unhappy customers

    complain

    91%

    Unhappy customers

    (non-complainers)

    simply leave

    67%

    Consumers site

    bad experience

    as reason for churn

    Experience is King!

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Confidential

    Digital Experience Report, 2016 (Korea)

    소비자 3,000명이 참여한 조사에서,

    ‘만족한다'고 답한 비율은 평균 25%로,

    아태 지역 평균 35%보다 낮았다.

    ‘불만족스럽다’고 답한 비율은 평균 37%로

    만족 응답 비율보다 12%나 높았다.

    디지털 경험과 비즈니스 성과는 높은 상관관계를 보였다.

    디지털 경험에 만족하는 고객 중

    해당 브랜드를 추천하겠다는 비율은 46% 였지만,

    불만족한 고객 중 74%는 브랜드를 추천하지

    않겠다고 답했다.

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Confidential

    Customer Experience matters!

    Customer experience is defined as the sum total of conscious events, as a coordinated series of interactions between a customer and a brand to accomplish anything. Above all words -a customer experience is defined by the customer, for the customer, at each touch-point, each time. — Esteban Kolsky

    If a customer likes you and continues to like you, they will do business with you. If they don’t, they won’t. — Paul Greenberg

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Confidential

    Digital Transformation & Customer Experience

    “Digital transformation represents the quest to understand how disruptive technology affects the customer experience”

    Superior Customer Experience

    Lowest Prices

    Revenue Profit margins Word of mouth

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Internal

    Taxi ExperienceUber, Kakao Taxi, T map Taxi, Grab, …

    © 2016 SAP SE or an SAP affiliate company. All rights reserved. 6

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Internal

    A Very Connected Retail Experience (1/2)Coca Cola “Free Style” vending machine

    © 2016 SAP SE or an SAP affiliate company. All rights reserved. 7

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Internal

    A Very Connected Retail Experience (2/2)Coca Cola “Free Style” vending machine

    © 2016 SAP SE or an SAP affiliate company. All rights reserved. 8

    [Coca Cola Freestyle App][Coca Cola Freestyle Cartridge]

    Open Innovation

    - Design from Pinifarina (Italian Automotive Design)

    - Micro-dispensing (precise doses of drug)

    - PurePour Technology

    Customized Drinks

    - Base product X Flavor ≥ 126+

    - Customized mix

    - 1.36L cartridge instead of 18.9L syrup

    Freestyle App

    - Customized flavor & naming

    - Referral, Location search, etc

    Transmission of supply and demand data

    - Detect supplies and radio re-supply demand

    - Troubleshooting, etc

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Internal

    A Very Unique Product (1/2)Lot size of One - NikeID (Nike)

    9© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Internal

    A Very Unique Product (2/2)Functional Personalization (Not Cosmetic Customization)

    10© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10

    * source: https://i.materialise.com/blog/3d-printed-shoes-inside-and-out/

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Internal

    A Very Personalized OfferOmni-Personalized Offering by Under Armour

    1111

    © 2016 SAP SE or an SAP affiliate company. All rights reserved.

    Location

    Web

    Search

    Review

    Community

    UA shopSchedule

    Weather

    Facebook

    Twitter

    Youtube

    Instagram

    Amazon

    Health Data

    Call Center

    BasicInfo

    Retail Store

    Email

    Live Customer Profile 기반

    Personalized Offering 제공

    2016.07.30

    대회 연습용쿠셔닝 강화마라톤화 제안

    2016.09.01

    11월 뉴욕마라톤용오렌지색 Gore-Tex 가을자켓 프로모션

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Internal

    A Very Smart SolutionDon’t own – just use!

    © 2016 SAP SE or an SAP affiliate company. All rights reserved. 12

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Internal© 2014 SAP AG. All rights reserved. 1313© 2015 SAP SE or an SAP affiliate company. All rights reserved.

    Kaeser Compressors – From Product to Service (1/2)

    “Our predictive maintenance solution has enabled us to proactively attend to maintenance needs and increase service levels for customers“

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Internal

    Kaeser Compressors – From Product to Service (2/2)

    14© 2015 SAP SE or an SAP affiliate company. All rights reserved. From: KAESER Corportate Site on Sigma Air Utility Model

    http://www.kaeser.com/Images/P-1620-ED-tcm8-6751.pdf

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Internal

    Digital Transformation Journey

    3. New UX 기반의 직관적인 분석

    Foundation for Digital Transformation

    System & Architecture │ Data │ Talents │ Ecosystem

    Optimization of Operation New Business Models

    Service │ Platform │ Data-drivenData Capture │ Synthesis & Analysis

    Information to Insight │ Action

    [ Internal ] [ External ]

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 16Internal

    Simplification

    3. New UX 기반의 직관적인 분석

    80% of global CEOs say fighting complexity is a personal agenda

    (9th annual global CEO survey, PricewaterhouseCoopers)

    Complexity costs the top 200 global companies 10.2% of annual profits

    85% companies have intentions toreduce complexity

    (KPMG, SAP Value: A balancing act, 2016)

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 17Internal

    The Digital Core

    Business Networks Customer Experience

    Internet of Things

    and Big DataSAP HANA Cloud Platform

    Workforce Engagement

    SAP HANA PlatformSecurity

    Digital Core

    Re-architecting for

    Visibility and AgilityUser Centric, Responsive and

    Personalized User ExperienceUnifying Functionality

    in Core

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 18Internal

    AC

    DOCABKPF BSEG BSET BSIS BSIS BSIK BSET

    COBK COEPLFC1 GLT0 GLT0 GLT0 COSP

    Master

    Data

    MSEG

    New

    MSTQH MSTEH

    MSTBH

    MSSQH MSSAHMSPRHMSLBH MSKUH

    MSKAH

    MKOLH

    MCHBH

    MARDH

    MARCH

    MSTQ MSTE

    MSTB MSSQ MSSA

    MSPR MSLB

    MSKU MSKA MKOL

    MCHBMKPF MARD

    SAP Logistics with Aggregates and Indices

    SAP S/4HANA Materials Management & Operations

    SAP Finance with Aggregates and Indices

    SAP S/4HANA Finance

    Re-architecting for Visibility and AgilityInventory Management Example*

    Traditional

    DB on HANA

    10 TB

    2 TB

    SAP S/4HANA

    0.7 TB

    *Illustrative example only

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 19Internal

    6,000+ views, 120+ new KPIs (planned)

    Embedded Analytics

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 20Internal

    Strategic Analytics - Digital Boardroom

    3. New UX 기반의 직관적인 분석

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 21Internal

    Enter Material Order Choose best supplier

    and complete material

    order entry

    Review Material Shortage

    Select Supplier

    Analytics and

    Insights

    Now All On

    One Screen

    Purchase Manager

    Check

    Budget

    Overview

    Review Detail

    Report

    Faster customer delivery

    Larger average deal size

    Fewer warehouse stock outs

    Check Average

    Supplier Delivery

    Performance Cross Sell

    *Screenshots shown are for demonstration purposes only and are not final product commitments

    Contextual Insights at the Point of Decision

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 22Internal

    SAP Fiori 2.0: Consumer Grade, Role-Based UX

    My Area NotificationsViewport

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 23Internal

    Augmented Reality

    3. New UX 기반의 직관적인 분석

    Logistics Maintenance & Repair

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 24Internal

    Unifying Functionality in Core

    SAP S/4HANA MARKETING AND

    COMMERCE

    SAP S/4HANA HUMAN RESOURCES SAP S/4HANA MANUFACTURING SAP S/4HANA SUPPLY CHAIN

    SAP S/4HANA SALES

    SAP S/4HANA FINANCE

    SAP S/4HANA SERVICE

    SAP S/4HANA SOURCING &

    PROCUREMENT

    SAP S/4HANA ASSET MANAGEMENT

    Digital Core Enterprise Management

    SAP S/4HANA RESEARCH &

    DEVELOPMENT

    Products

    Suite

    Products

    Suite

    INDUSTRIES

    • Supplier Collaboration

    • Business Network

    • Guided End-User Buying

    • External Workforce Management

    • Core Human Resources And Payroll

    • Talent Mgmt.

    • Time and Attendance Mgmt.

    • Human Capital Analytics

    • Asset Operations and Maintenance*

    • Environment, Health, and Safety

    • Enterprise Portfolio and Project Mgmt.

    • Commercial Project Mgmt.

    • Compliant Product Lifecycle Mgmt.*

    • Service Mgmt. *

    • Service Master Data Mgmt.*

    • Service Parts Mgmt.*

    • Service Agreement Mgmt.*

    • Maintenance Mgmt. • Product Development and Project

    Control

    • Production Engineering

    • Financial Planning and Analysis

    • Accounting and Financial Close

    • Treasury Mgmt.

    • Receivables Mgmt.

    • Invoice Mgmt. and Accounts Payable

    • Accounting and Closing Operations

    • Accounting

    • Cost Mgmt. and Profitability

    Analysis

    • Time Recording• Operational Purchasing

    • Collaborative Sourcing and Contract Mgmt.

    • Invoice and Payables Mgmt.

    • Supplier Management

    • Procurement Analytics

    • Production Orchestration and

    Execution

    • Quality Mgmt.

    • Inventory and Basic Warehouse

    Mgmt.

    • Production Planning

    • Order and Contract Mgmt.

    • Sales Planning and Performance

    Mgmt. (ICM)• Billing and Revenue Innovation

    Mgmt. (BRIM)

    Cloud for Service

    Service Engagement Center

    S/4HANA Marketing Cloud

    Cloud for Customer

    Commerce

    Cloud for Sales

    • Extended Warehouse Mgmt.

    • Advanced ATP

    *(partially) Compatibility Scope

    • Integrated Business Planning

    • Global Batch Traceability

    • Extended Warehouse Mgmt.

    • Transportation Management

    • Responsive Manufacturing (ME, MII,

    QIM, VE)

    • Production Operations (MII, QIM)

    • Digital Operations for Manufacturing

    (MII)

    • Digital Asset Network • Digital Operations for R&D

    • Governance, Risk, and Compliance

    for Finance

    • Financial Services Network

    • Constrained production planning

    • Production Scheduling

    **For details on Suite Solutions per LoB – see respective detail slides

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 25Internal

    Machine Learning

    3. New UX 기반의 직관적인 분석

  • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 26Confidential

    Transformation starts from memorable experience

    Commodity

    Goods

    Service

    Experience

    Transformation

  • 감사합니다

    Internal