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- 1 -SAP Digital Defense Whitepaper (03/16) © 2016 SAP SE. All rights reserved

Digital DefenseAchieving Agilityin a volatile, uncertain, complex, and ambiguous world


“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.”

Sun Tzu, The Art of War, 6th century BC


Dear Customers and Partners,

All military leaders I meet say they need better and smarter information for innovative strategies to help them prevail in our volatile, uncertain, and dangerous world. The battlefield is transforming: friend and foe are hard to distinguish, digital warfare against companies and countries is emerging, digital reconnaissance delivers fast but ambiguous information, digitally controlled autonomous platforms will dominate the future battlefield. How can digitization help this?

SAP did not invent network-centric warfare principles, but we have been part of their evolution since the early ‘90s. Today, strategic, tactical, and operational agility are the key objectives of digital warfare.

While the risk, complexity, and diversity of military missions grow, many defense budgets are shrinking, so we have good reason to take a step back and assess the opportunities the digital world offers to increase agility, intelligence, and operational effectiveness and efficiency. But how to bring this together?

At the center of SAP’s solution strategy is the digital core. This is connected in real time to suppliers, operators, facilities, aircrafts, vehicles, and vessels and even the sensors and devices of your operators. The connectivity afforded by a single set of transactional and analytical data eliminates ambiguity and provides a clear, up-to-date view of the reality for better situational analysis and decisive action.

This platform minimizes your cyber attack surface, standardizes security practices, and protects you and the information it processes. It’s a resilient platform that can operate in austere and limited communication environments.

I also understand that people continue to be the heart of all military efforts. It is the uniformed personnel and their family members, the civilian labor, and the embedded contingent workforce who need and operate digital technology. Digital innovation must serve them and enable the forces to cooperate and multiply their strengths.

I firmly believe that our SAP technology enables innovative forces to reimagine the operating concepts, procedures, and how operators and support entities work together for optimal outcomes.

This white paper outlines digital technology trends, shares our vision of defense organizations harnessing the power of data and digital insight, and shows how the SAP platform inspires innovative practices throughout your organization.

Thank you for your interest, and I look forward to your feedback.

Run Simple

Angus MacGregor-Millar

Angus Macgregor-MillerGlobal Vice President Defense & Security Industry Business UnitSAP

“Rapid and disciplined introduction of innovative technologies as well as cognitive and physical superiority are at the crux of agility in a digital defense environment.”

Angus Macgregor-MillerGlobal Vice President Defense & Security Industry Business UnitSAP

ANGUS’ POINT OF VIEW


Executive Summary 5

Top 5 Technology Trends

Hyperconnectivity

Supercomputing

Cloud Computing

Smarter World

Cybersecurity

8

10

11

12

13

14

A Pragmatic Approach to Digital Business

Reimagine Everything

A Simple Solution

15

16

20

Strategy and Planning

The Digital Core

Operator Experience

Personnel Engagement

Business Networks and Supplier Collaboration

Assets and the Internet of Things

SAP HANA Platform, a New Computing Paradigm

How Does It All Come Together?

21

23

24

25

26

27

28

29

Why SAP?

SAP is Committed to Innovation

Complete Digital Business Solution

SAP Services and Support

SAP Comprehensive Ecosystem

30

31

32

33

34

TABLE OF CONTENTS


EXECUTIVE SUMMARY

Big picture: Digital defense is real and it’s here to stay

Digital Defense

Technology trends Five technology trends have converged into the digital economy – hyperconnectivity, supercomputing, cloud computing, a smarter world based on outcomes and cyber-security. The resulting pace of change is staggering. Defense is no exception, and leaders in defense are moving to an era of the connected service personnel or operator, where leading-edge technology can keep them informed and protected. It can also improve areas critical to defense mission success – safety, efficiency, effectiveness, security – do more with less.1, 2

Innovation is emerging from everywhere and anyoneYour adversaries have mastered the use of social media and the element of surprise to their advantage. They use and adapt to the latest off-the-shelf technology for communication, transportation, etc. in their daily operation.3,4

Aware but unsureLeaders know the world has changed. Research shows 90% of CEOs believe the digital economy will have a major impact on their industry, but less than 15% are funding and executing on the plan.5

It’s about the operatorOperators expect a new type of experience: one that is frictionless, where interoperability is seamless, and where technology is invisible. Military leaders want to minimize human casualties and maximize situational awareness.1

Disruptive digital business models. The

rules have changed. The defense digital network is becoming more collaborative and cooperative.

• Innovators are achieving agility The NATO Smart Defence initiative is a cooperative way of thinking about generating the modern defense capabilities that the Alliance needs for the future.6

• Small wonder can lighten the operator’s load Nanotechnologies and smart fabrics are helping the UK Armed Forces to reduce equipment weight and improve operational efficiency. 7

• Platforms (R)evolutionPlatform-based organizations are capturing more of digital’s opportunities for strong mission execution. 1

WHAT DOES THIS TELL US?

The road map to digital relevance entails reimagining operating concepts and proactively evolving before the adversary does. Every defense organization within this digital network is now a technology organization, and only by partnering will true joint operations be possible.


EXECUTIVE SUMMARY

Digital defense networks

A digital defense network would represent the digital nerve system of the next-generation defense infrastructure, bringing together the disparate worlds of battle management and resource management.

Transformation drivers

The industry value chain is not only blurring, but also transforming at breakneck speed. Four categories of transformation drivers are forcing changes in the value chain:• Situational: Extended life programs for fielded

weapon systems, changes to military procurement, and the significant increase in cyber threats and high-tech terrorism have all changed countries’ military posture

• Transformational: The (NATO) lead nation concept and pressure to privatize non-core business will lead to the adoption of digital solutions at the edge

• Technological: Increase in robotics, nanotechnologies, 3D printing, and the expansion of military-relevant Commercial Off The Shelf (COTS) will lead to growing standardization

• Digital: Digital information within the digital defense network will leverage the Internet of Things (IoT) and its ubiquitous connectivity

Collectively, they are transformative, creating the most complex global security environment we’ve ever seen.

81%of executives surveyed believe simplification is important for their organization, and 88% admit IT investment is important to achieve simplification.8

36enterprise apps per billion dollars in revenue for the average company. This is driving most of the technical complexity8

Leadership for digital transformation

Leaders increasingly require a broader range of styles to match the breadth of challenges posed by both a complex and ambiguous world – digital transformation addresses this complexity and ambiguity. It is no longer enough to command or be an excellent communicator. While those styles have encouraged innovation, leaders in the digital age need to be more empowering and enabling in order to tap into the innovative skills of their operators. They need to be both orchestrators of networks and willing to drive rapid scaling and innovation that reimagining their operating concepts will lead to.

But there is no one correct, pure leadership style. Leaders in the digital age must ultimately be explorative and exploitative, transformative yet transactional.

Leadership framework for transformation

Digital leaders will understand that transformation is inevitable, and that, while tremendously fast, will also be uncertain in execution. They will share a vision of the digital future of their organization and will have a defined digital strategy to achieve this. Digital transformation is how this technology will fulfill its potential, and it will require leaders to recreate the way their institutions operate in a world of digital ubiquity. New leadership behaviors will be key to creating vision, strategy, and plan. One example is the digital board room, enabling collaborative leadership in action, in the digital age.

The future: Transitioning to digital defense

THE DIGITAL DEFENSE NETWORK

Machines PumpsBuildings

Organizations

People

Things

OEM/ manufacturing

Service providers

Commodity vendors

Non government organizations

Education and training

HealthcareAllies

Other government dept./agencies

Barcodes and RIFD

Smart shelves

VehiclesAircraftsShips

Biometric PublicFamilies

PersonnelCommunities of Interest

Contractors


REIMAGINING

Do you have the right strategy? Start by reimagining your processes with desired outcomes and the operators at the center.

EXECUTIVE SUMMARY

PLATFORM

Do you have the right platform?

In order to achieve the reimagined vision for your defense organization, you need to have the right platform in place. Leaders are investing in digital capabilities that are congruent with their strategy. The right technologies ensure agility and a rich environment for innovation. In addition, the platform should align to desired outcomes.

SAP’s digital business framework is based on the five key pillars of a digital plan and architecture:1. Operator experience across all channels2. Supplier collaboration across all spend categories

(product, services, and T&E)3. Core business processes (force generation, force

deployment, military supply chain, maintenance and engineering, budget and finance, …)

4. Personnel engagement, including military and civilian employees and contractors

5. Assets and the Internet of Things to drive real-time situational awareness and optimize asset and human physical performance

ROI drives this significant phase of the transition to digital. It’s not about any one of the five pillars, but rather how they all interconnect to achieve the desired outcomes.

We leverage Design Thinking as a our key approach to the reimagining phase. Design Thinking can be described as a discipline that uses the designer’s sensibility and methods to match needs with what is technologically feasible and what a viable strategy can convert into operator value.

Road map to Run Simple: Steps to digitize your defense organization

REIMAGINE OPERATING CONCEPTSAchieve agility in a volatile, uncertain, complex, and ambiguous world by innovating and transforming to an outcome-based organization.

REIMAGINE PROCEDURESChange or eliminate fundamental defense processes due to digitization.

REIMAGINE PERSONNELDrive step-change in improvements to existing procedures based on real-time information to make the right decisions and drive immediate impact.

SAP S/4HANA enables agile defense with real-time processing capabilities through the “OODA loop” (military decision making) cycle

SAP HANA

Ob

se

rve

Act

Orient

De

cid

e

Commanders Ops Center

Information at the fingertips


TOP FIVE TECHNOLOGY TRENDS

Top five technology trends that are enabling digital defense and changing the operational landscape



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

Hyperconnectivity enables higher operator and organizational agility, engaging in real time across the digital defense network to deliver against your desired outcomes.

HYPERCONNECTIVITY

Large-scale in-memory computing is a breakthrough that collapses transactional and analytical processing into a single platform, dramatically reducing cost and enabling massive simplification and value creation.

SUPER COMPUTING

Technology adoption and business innovation move faster than electrons in the power grid. Technology infrastructure lives on new cloud-based collaboration platforms, enabling Defense organizations to enable new procedures in a matter of days.

CLOUD COMPUTING

Sensors, robotics, 3D printing, and artificial intelligence are the new normal. Defense organizations will monitor and repair assets remotely, critical components will be made in the field, and predictive models will optimize the digital defense network.

SMARTER WORLD

With ever-increasing risk of cyber espionage and cyber crime, cybersecurity must be addressed as defense organizations set and execute their digital strategy.

CYBER SECURITY

1

2

3

4

5


Connecting the world with roads, shipping routes, railways, and airports was a key enabler to the movement of goods and knowledge during the industrial age. In digital defense, we are witnessing an explosion in connections at the individual and machine level. This exponential hyperconnectivity is driving new channels to engage people and organizations in new ways to optimize resources and make the world a better place.

Hyperconnectivity in the digital defense network will impact across four dimensions:

1. PeopleToday, over 3.4 billion people are connected to the Internet, and growing at a global average of 9% per year9 bringing knowledge to the edge, extending further the reach of information sharing, and collaboration.

2. OrganizationsFor years, NATO standards have enabled inter-organizational operability. 10 We are witnessing the emergence of the “network of networks,” enabling digitization by connecting the digital defense network with its members across all service categories at new levels of efficiency and in real time.

3. Communities of interestMillions of people are leveraging specialized communities to provide services, share knowledge, and engage in topics of mutual interest. Defense organizations need to foster and leverage these self-organizing communities to optimize individual and team performance.

4. Sensors and devicesSensors are more reliable, last longer, and cost a lot less. This technology breakthrough is driving what is known as the Internet of Things and Big Data, and will drive innovation to better meet the desired outcomes of the defense organization and its ecosystem by anticipating need through pervasive situational awareness.

Hyperconnectivity

2 3 4 5

1

Achieve higher agility by engaging with the hyperconnected digital defense network to ultimately deliver against desired outcomes.

3.4 billion Internet users worldwide 9

2.0 million companies connected to the Ariba Network11

2.0 billion people on social networks 12

Sensor prices have dropped to an average 60 cents from $1.30 in just 10 years13


Super Computing

3 4 51

2

TODAY’S REALITY• Only 20–30% of IT budgets are

dedicated to innovation14

• Companies have on average 36 applications/$1 billion in revenue7

Large-scale in-memory computing is a breakthrough that collapses transactional and analytical processing into a single platform, dramatically reducing cost and enabling massive simplification and value creation.

TOMORROW’S SOLUTION• 7x faster throughput and 10x smaller

data footprint• 1,800x faster analytics and reporting• 65% reduction in resource consumption15

MAKING IT REALIncrease in processing speed is equivalent to reducing a London-NY flight from 8.25 hours to 8.42 seconds16

Since the inception of business applications, commercial companies and defense organizations have dealt with a major limitation: transaction and analytic systems required separate landscapes, resulting in complexities (data redundancy, batch jobs, complex systems, high costs).

After eight years of innovation and development, SAP, with the Hasso Plattner Institute and our strategic partners, created a completely new platform that eliminates the separation of transactions and analytics. This technology, SAP HANA, has provided a massive breakthrough to the business world.

SAP HANA is more than just a database; it is a platform to manage digital defense. Although the technology is relatively new, we are already witnessing 7,200 companies leveraging it to reimagine themselves.

The value that this technology brings includes:

1. Real-time defense/commander situation roomDefense processes, with geo-spatial awareness, can run in minutes, not hours or days, changing how people work and how the digital defense network is optimized, thereby changing the focus to predicting and optimizing future outcomes.

2. AgilityAdaptation and introduction of new technologies can be made significantly faster. This provides the necessary agility to be flexible and responsive to emerging situations, which leads to operational benefits.

3. Step-change in productivityOperators obtain the sophistication they have at home for the workplace. With smart apps, transactions run on any device, data is mined at any level of granularity, and simulations and predictive analytics are used to develop viable options for enhanced decision-making.

4. Immersive training environmentsTraining systems will use advanced software and hardware combinations to fully engage individuals and teams in virtual and constructive simulations. Future concepts can be quickly simulated with the results analyzed and opportunities for improvements uncovered.

5. Reduce total cost of ownershipTCO has decreased dramatically due to the collapse of architecture, fewer customizations, the ability to run large volumes of data in a single computer, and cloud deployment options. Architecture simplification will also enable fewer points of failure. Defense organizations can shift their IT spend to innovation and value creation.

Commanders Ops Centerenabled by real time data

Information at the fingertips


Most defense organizations will be living in a hybrid world where cloud technologies interact with on-premise apps. Most innovations are delivered as cloud apps, the value of which has already been proven. With faster time to value, capabilities available in the network, and the rise in adoption, cloud is already a reality in defense .

We believe that there are four cloud delivery models, which must be evaluated:

1. Software-as-a-service (SaaS) SaaS is a mature trend with companies like Ariba providing solutions via the cloud. SAP is the leading cloud company with 95 million+ users leveraging SaaS. With SaaS growing 20%+, we see more apps moving into the cloud. While this is dominated by CRM, procurement, and HR, other apps like ERP are also moving into the cloud.

2. Platform-as-a-service (PaaS)PaaS provides an entire computing platform in the cloud, including hardware, software, and open APIs, to build new businesses and create new solutions. Apple is a great example, and the SAP HANA Cloud Platform will also be a disruptive platform for business.

3. Infrastructure-as-a-service (IaaS)Businesses are leveraging IaaS to get up and running in a matter of hours without spending significant capital expense. This is possible through services such as Amazon Web Services. Even Facebook are opening their platform and architecture to develop solutions via IaaS.

4. Business networksCompanies are connecting and sharing information and transactions within the cloud. This collaboration will change how commerce is done. As an example, Ariba comprises 2.0 million+ connected private companies and public organizations and $740 billion+ in business commerce. We believe this will lead to further efficiencies in the way business is conducted within the digital defense network.

34 51 2

Projected spending on cloud computing infrastructure and platforms will grow at a 30% CAGR from 2013 through 2018, compared with 5% growth for overall enterprise IT17

$740 billion+ in business commerce through the Ariba Network9

Global SaaS software revenues are forecasted to reach $106 billion in 2016, increasing 21% over projected 2015 spending levels17

Cloud Computing

Cloud computing will accelerate time to value, drive higher adoption of new technologies, and connect the digital defense network in real time. Defense organizations will need to evaluate exactly which delivery models will help them continue to innovate faster.

SaaS

Supply chain management

Customer

Employee

Business network

B2B payment

Logistics

Supplier

PaaS

Apple iTunes

Google Store

SAP HANA

Facebook platform

IaaS

Oracle

IBM

HP

Amazon

Key


Smarter World451 2 3

The economic implications of 3D printing are significant, with up to $550 billion a year by 202521

The global industrial robot population will double to about four million by 202019

To power today’s technology, today’s soldier carries an average of seven different batteries weighing about 8 kg, (15-20% of total weight a soldier has to carry), plus reserve batteries and connecting cables. Reducing the battery burden with all in one rechargeable battery and battery health analyzer is vital for the security, resilience, and mobility of the soldier.20

Defense organizations can leverage Big Data and new technologies to transform themselves to better achieve desired outcomes. Industry lines are blurred, and defense organizations need to innovate to remain agile in an affordable way.

The digital defense network is reimagining operating concepts, embedding software in “things,” and focusing on defense organizations’ desired outcomes.

There are four innovations enabling the world to become smarter:

1. Autonomous systemsAutonomous systems are transforming a number of military functions, as they can take on tasks with no or limited human intervention and are available at a lower risk. An example of this is autonomous logistics vehicles being used to re-supply front-line troops with water in minutes rather than hours, while drastically reducing the risks to personnel.18

2. Artificial intelligence (AI)The rapid growth of structured and unstructured data can be analyzed via AI. Computers can answer questions faster than humans through machine-based algorithms. Software can self-learn.

3. Smart itemsSmart items and assets will change how defense organizations and their people interact and ultimately operate. The latest weapon system platforms and usage and/or performance-based contracts are examples of this.

4. Smarter printingWith 3D printing, defense organizations can reshape their supply chain. This goes beyond providing supplies faster to operators; support personnel can print their own products, and defense organizations can make spare parts on demand. The value includes increased agility and reduced cycle times and supply chain costs.

Smarter, autonomous systems; artificial intelligence; smarter items; and smarter printing will completely reshape the digital defense network and ultimately its agility.


Cyber Security5

1 2 3 4

In 2015, careless/untrained insiders are noted as the largest source of security threats at federal agencies. This increased from 42% in 2014 to 53% in 201522

Five out of six large companies were targeted by cybercriminals in 2014, a 40% rise over the previous year23

Globally, cyber crime costs businesses $375-$575 billion annually and a net loss of up to 200,000 jobs in the United States alone24

Defense organizations have always been prime targets for cyber attacks and therefore assign cybersecurity a top priority. Managing security across the digital defense network must be accomplished through technology and proper governance (e.g., NIST’s Cybersecurity Framework).

Multifactor authentication (U2F standard), biometrics (UAF) supported by contextual analysis and location-based intelligence, and behavioral analytics for fraud prevention will be highly important. Today’s innovations such as fingerprint, voice, or retina scan enable another layer of security and help verify people’s identity in both the physical and virtual world.

The use of electronic signatures will grow significantly, simplifying contracting and improving process efficiency. Privacy is of central concern, and therefore identification via tokenization will be expanded.

Application and storage-level encryption, strict access control, and pervasive auditing are central to all financial systems. The landscape needs to be protected by intrusion detection and prevention systems (IDPS), network behavior anomaly detection (NBAD), and intelligent enterprise threat detections systems (ETD).

The following cyber elements should therefore be addressed:

1. Securing dataSecuring data in an omnichannel environment requires all channels, as well as partner solutions, to stay compliant with data privacy and compliance regulations (e.g., FFIEC). Understanding local data controls and establishing encryption and classification criteria are equally important.

2. Securing interactionsValue chain interactions must be secured and joint SLAs should be in place with partners. Interactions with people must be authenticated at a level matching value, risk, and usability. Checks should be implemented at all levels to prevent possible widespread impact.

3. Securing identitiesAccess to digital information must be restricted to authorized users. Central identification and authentication (IDM), regardless of channel or device, and a robust but fine-grained authorization system are key.

4. Monitoring and act in timeSecurity is a lifetime topic, i.e.. the landscape needs to be continuously monitored and analyzed for security breaches (including SIEM systems). Procedures and governance also have to be in place in order to act on incidents in a timely and effective manner.

5. Partnering with trusted suppliers Supplier relationships are key in establishing trust as more non-core processes are outsourced. Companies should build relationships with a few partners who will meet the highest security standards. This will also result in a more simple and nimble architecture.

With an ever-increasing risk of cyber espionage and cyber crime, cybersecurity must be addressed as defense organizations set and execute their digital strategy.

InformationCyber space

SecurityOperations

Cyber-attacks

Cyber-deterrence

Cyber-terrorismExploit cyber-defense

Deceive planningDeny

Consistency threat destroyIndication intrusion critical cyber-war

Disrupt cyber-battles

WarningPreemptive Cyber-warfare

ControlDetection Degrade Access

VulnerabilityIntegrity

Infrastructure

Cyber-conflicts

Cyber-threats

Cyber-systemsCyber-relations


REIMAGINING

DIGITAL DEFENSE OFFERS INFINITE NEW OPPORTUNITIESIn a connected world, where every defense organization is becoming technology-driven, smarter products and services will refocus defense on operational outcomes and blur industry lines.



DIGITAL INNOVATION IS REAL

REIMAGINE EVERYTHING

When analytics and transactions are combined in real time on the same platform, procedures will never look the same.

• Collaborative military planning and force generation across the joint and coalition forces to develop viable and pragmatic options to commanders for informed decision-making

• Seamless battle management and resource management integration will significantly improve the synchronization of operational actions and mission accomplishments

• Optimized asset and human physical performance based on predictive capabilities and hyperconnectivity.26, 27

• Financial analysis and business planning in real time allow defense organizations to optimize their allocated resources to balance operational and strategic risks

• Optimized sustainment chain over the last tactical mile, with resupply performed by autonomous vehicles in order to reduce the risks to personnel and lighten the load that deployed units must carry18

REIMAGINE OPERATING CONCEPTS

REIMAGINEPROCEDURES

REIMAGINE PERSONNEL

Defense organizations have to adapt to rapid changes in the environment and adjust capabilities to address emerging situations by innovating.

• Outcome-based operating models focus on the outcome and not on the “how” by rapid introduction of disruptive technologies to reduce the resource burden in-theater while improving operational effectiveness

• Collaborative and cooperative defense to develop, acquire, operate, and maintain military capabilities for effective and efficient joint and multinational deployments and missions. Nations pooling and sharing, or paying for performance, delivering results over the last tactical mile

• Defense logistics networks will behave like commercial business brokerage models

• Live constructive training through the simultaneous involvement of real and virtual participants to push the boundaries of tactics, techniques, and procedures in a complex environment25

Employer of choice status goes beyond recruitment and retention to fundamentally revolutionizing the way people operate.

• Eliminate human work altogether by applying autonomy to the process (e.g., “smart shelf” ammunition reordering)

• Improve individual and team cognitive performance through real-time, wearable, integrated technologies coupled with contextually aware and anticipatory data28

• Use predictive and self-learning software to improve machine-to-machine and machine-to-human collaboration and optimize decisions

• Use interactive technology to improve user experiences, including voice recognition, visualization, and immersive technologies

• Win “war for talent” in digital economy to attract and retain top talent with the best technology and access to information

Commercial companies and defense organizations understand that hyperconnectivity and Big Data are the keys to value creation. Based on our collaboration with defense and commercial organizations worldwide, we have seen that successful ones are moving quickly in three strategic areas.

Sir Nicholas Houghton:“Few people genuinely understand the exponential change that is being brought about […] and even fewer people can

comprehend the impact it will have on capability; and particularly on capability as we currently, doggedly, and determinedly cling to assessing it.”29


REIMAGINE OPERATING CONCEPTS


Defense organizations have to adapt to rapid changes in the environment and adjust capabilities to address emerging situations by innovating.

Outcome-based operating models s on the outcome and not on the “how.” Digital defense allows the rapid introduction of disruptive technologies to reduce the resource burden in-theater, while improving operational effectiveness.

• Individuals have the freedom to achieve the desired outcomes. The digital defense network brings their extensive experience together, employing cutting-edge technology

• Utilize new technology as it presents itself to better address emerging requirements. Organizations can pivot quickly to exploit its benefits without letting a previously authorized program of record run its course first. For example, innovative solutions for energy efficiency in the battlefield will increase operational reach, autonomy, and combat effectiveness

• This model allows defense organizations to out-innovate their adversaries

Defense logistics networks will start to behave much more like commercial business brokerage models.• Defense logistic networks serve to bring together demand

and supply across the ecosystem, regardless of the participants’ location and operations

• Unlike the existing defense logistic networks (e.g., foreign military sales procurement) that are simple, but rigid and dedicated, business brokerage networks allow buying and selling across the spectrum of goods and services by defense organizations. For example, Service personnel at a branch of a major country’s military have resorted to eBay to source parts for aging systems, exposing readiness

• Matching supply and demand from timely sources

Collaborative and cooperative defense develops, acquires, operates, and maintains military capabilities for effective and efficient joint and multinational deployments and missions. Nations pooling and sharing equipment or capabilities and paying for performance deliver results over the last tactical mile.• Multinational collaboration and cooperation, specialization,

and prioritization of defense spending is at the heart of pooling and sharing

• Interoperability becomes even more important and allows sharing of common doctrine and procedures and each others’ infrastructure and bases to seamlessly communicate over the network. For example, it is now common for allies to pool and share medical treatment facilities in support of operations 30

• Defense organizations can provide capabilities to their own personnel at a lower cost by leveraging the specialized equipment and knowledge of their allies

Live constructive training through the simultaneous involvement of real and virtual participants, pushing the boundaries of tactics, techniques, and procedures in a complex environment.• Cloud-hosted services and applications that converge live

and realistically simulated environments are used to manage the entire spectrum of training and concept development activities, regardless of location or whether at the strategic or tactical levels

• The flexibility of live constructive training makes “train as you fight/fight as you train” tailored and affordable. For example, the training of a forward air controller in a live environment would today require close air support aircraft. Live simulation using technologies such as augmented reality and high-resolution terrain data will vastly reduce this complexity and cost. Advanced analytics provide the ability to replay and conduct after-action analysis

• Create the best possible training and testing environment for geographically dispersed forces for any type of situations

The Canadian Department of National Defence digitally collaborates with their Performance Based Logistics contractors 31

Varian improves the safety, accuracy, and efficiency of training product and product support engineers on the company’s highly complex oncology and X-ray equipment with SAP® 3D Visual Enterprise 32


REIMAGINE PROCEDURES

When analytics and transactions are combined in real time on the same platform, procedures will never look the same.


The US Army has near-real-time access to transaction statuses, users can identify and solve problems almost as soon as they occur. 34

Transport for London using SAP HANA for IoT and big data processing to develop options for decision making 33

Collaborative military planning and force generation across the joint and coalition forces to develop viable and pragmatic options for commanders to make informed decisions.• Leveraging the modular force concepts and integrated

readiness assessments, military planners can compose options to government to respond to emerging crises

• Total resource visibility provides the necessary insight to planners and decision-makers to generate and deploy forces. For example, the deployment of rapid reaction forces specifically tailored to the mission parameters

• Quickly develop options through a repeatable and flexible collaborative planning environment

Seamless battle management and resource management integration will significantly improve the synchronization of operational actions and mission accomplishments.• Resource management and battle management are the two

sides of the same force element coin• Mission planning and execution is seamless. Aircraft sortie

generation matches mission demands, informed by resources visibility

• Agility through feasible options that can be acted on

Predictive software: Hyperconnectivity will transform how we optimize asset and human physical performance.• Through embedded or affixed sensors, gain greater visibility

into the physical performance of fixed assets, aircrafts, ships, land systems, and personnel

• Predictive analysis techniques are employed as an early warning to detect potential failure or fatigue of systems. For example, analysis of system vibration patterns can lead to the identification of a catastrophic failure before it occurs

• Improved human/machine system availability at lower lifecycle cost

Financial analysis and business planning in real time to allow defense organizations to optimize their allocated resources and balance operational and strategic risks.• Financial management along the entire financial lifecycle• Provide accurate, timely, and relevant data that connects

operational output/performance data to financial data. As an example, military planners can conduct real-time assessments of the impact of future deployments based on current budgetary constraints

• Understanding of the impact of resource allocation; balance tactical and strategic risks

Sustainment chain optimization over the last tactical mile performed by autonomous vehicles to reduce the risk to personnel and lighten the load that deployed units must carry.• Autonomous systems can take on tasks with limited or no

human intervention. They rely on an extensive array of sensors to provide the system with situational awareness

• As troops are frequent targets of improvised explosive devices and insurgent attacks, autonomous vehicles, for example, reduce the number of truck resupply convoys and their troop escorts to protect soldiers on the ground

• Reduced logistics footprint by improving the tooth-to-tail ratio

The Royal Canadian Navy uses 3D printing to manufacture parts no longer commercially available. 35


Employer of choice status goes beyond recruitment and retention to fundamentally revolutionizing the way people operate.

REIMAGINE PERSONNEL

At Northrop Grumman, Each 3D-viewable graphic represents the most current configuration managed CAD data available, and is complemented by real-time status updates and business information that assure precise decision-making.36

Recruits from the New Zealand Defence Forces get sized and equipped with their new uniforms using RFID technology. 37


Eliminate human work altogether by applying autonomy to the process.• Business processes are simplified• Embedded sensors are participants in the process itself by

acting on the behalf of humans. For example, armored vehicles can autonomously send replenishment requests for fuel and ammunition as well as for maintenance

• Increased operational efficiencies and effectiveness

Improve individual and team cognitive performance through real-time, wearable, integrated technologies coupled with contextually aware and anticipatory data.• Operators will be equipped with wearable technology that

provides enhance situational awareness• Augmented reality provides operators with the ability to fuse

input from their primary senses with real-time data from other sources to better discern between friend or foe

• Reduced uncertainty, improved real-time situational awareness, better informed decision-making, and proactive assistance

Use predictive and self-learning software to improve machine-to-machine and machine-to-human collaboration and optimize decisions.• Decisions are made based on competing factors• Advanced analytics capabilities help to recognize patterns to

provide decision-makers with recommendations. For example, a soldier carrying a heavy load is equipped with an array of biometric sensors. His/her movement patterns and vital signs are analyzed in real time and the team leader is alerted in the event of signs of fatigue or risk of injury

• Enhanced decision-making, risk reduction, and operational performance

Use interactive technology to improve user experiences, including voice recognition, visualization, and immersive technologies.• Appropriate user interaction techniques are provided, that go

beyond “mouse clicks”, and are more suitable to the working environment such as voice recognition.

• The system is designed around the needs of the user. Technicians can be walked through complex procedures with the help of 3D visualization while performing maintenance activities

• The system is ruggedized and useable in all weather and operating conditions

Win “war for talent” in digital economy to attract and retain top talent with the best technology and access to information. • Achieving recruitment and retention goals is challenging in

the current economic climate. This is most severe where demand in the private sector is high for trained and competent people with specialized skills

• Recruiters and career managers optimize person-to-job matching – that is, optimize those matches in which personnel has the greatest chance of successful job performance and career-long job satisfaction

• Effective recruiting and retention program that meet the personnel needs of defense organizations


SAP HANA: THE GREAT SIMPLIFIER

In order to reimagine everything in digital defense, agility and flexibility are required to adjust course at any time. This involves two key concepts: simplification and innovation.

• Simplification is all about doing what we are already doing, but better, faster, and cheaper

• Innovation is all about reimagining operating concepts and operator value by leveraging the five technology trends

The diagram below illustrates the heart of the digital defense transformation. The idea is very simple but it took years to make it a reality: Bringing together transactions and analytics on the same platform and uniting structured data (e.g., finance) with unstructured data (text, video, voice) will change how defense organizations plan, execute, and innovate.

In-memory computing is a concept brought to life by the breakthrough SAP HANA platform. While relatively young by commercial standards, SAP HANA’s rapid adoption across multiple industries validates its massive potential for digital businesses.

With in-memory computing, we can now finally:• Leverage Big Data from sensors, weather, social, and

geospatial sources. Bringing all data signals together leads to the optimal recommendation, which can be instantly acted upon in transactional systems via human and machine-to-machine interfaces

• Extend the business process to interoperate with trusted members of the digital defense network in near real time via advanced business networks

• Modernize business processes from planning to execution, running them in real time with no data replication and no batch programs

These capabilities open infinite new ways of optimizing business, driving business digitization, simplifying everything, reducing cost, and providing the agility required in rapidly changing world.

SAP constructed an innovation road map designed to bring in-memory computing together with cloud computing and mobility. This strategy has been embraced by early adopters who are leading the transition to digital.

SMARTER DECISIONS + SMARTER TRANSACTIONS = SMARTER DEFENSE

Social

Big Data source

Web services

Geospatial

Machine data

Third-party data

Business process Business intelligence

(data and information)

Force generation

Force deployment

Interoperability and information sharing

Military supply chain management

Maintenance and engineering

Budget, finance and procurement …

SAP HANA PLATFORM

…


DIGITAL BUSINESS FRAMEWORK

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



Every defense organization can develop a digital strategy across these five pillars.

1. Outcome-based operator experience2. Re-platform core business processes and bring

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

3. Smarter and engaged personnel across all employees and contractors

4. Supplier collaboration to accelerate growth innovation

5. Harness assets and the Internet of Things to drive real-time insights and new business models

SAP understands the five technology trends, and we also understand that these ever-changing requirements are big challenges for defense organizations. The reimagining process helps crystalize future military capabilities.

As a result, we have built a structured framework to think through how to develop and execute on your digital defense strategy: the digital defense framework. With this framework, the entire value chain will be digitized, including the core which serves as the platform for innovation and business process optimization.

Every defense organization needs to think about digitization across five key pillarsDIGITAL BUSINESS FRAMEWORK

SAP HANA PLATFORM

Personnelengagement

Supplier collaborationBusiness networks

Operator experienceOmnichannel

Assets &Internet of Things

Digital Core


THE DIGITAL CORE

Currently SAP S/4HANA is the only end-to-end solution that covers all business processes across 25 industries and runs in-memory. The real consideration here is how and when to use such a breakthrough in business applications.

In addition, the SAP HANA platform can be the single enterprise data source leveraged by SAP S/4HANA and the rest of your solution landscape.

With advanced in-memory computing, you can finally free yourself from running your defense organization in batch mode and building complex procedures to get around technology limitations. You can run simply and unleash the full power of digital defense.

Agility

The ability to rapidly and successfully adjust capabilities to address emerging situations will be significantly simpler.

Real time

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

Power of prediction and simulationPersonnel can leverage real insights with the help of simulation and predictive tools to drive perfect decisions and significantly increase efficiency and effectiveness.

Deployment choice and lower TCO

The consuming solution to run the core has to be simple. Defense organizations now have the choice to deploy in-house or in the cloud. In-memory computing will also have a major impact on TCO and will free up more budget for innovation.

Consumer-grade user experience

User experience is key to success: it drives adoption, user engagement, and ultimately gains in efficiencies and effectiveness.

Simplify with SAP

A new generation of ERP solution with embedded best military, public sector and commercial practices, running in real time, integrating predictive, Big Data, and mobile, will change how you work, how you run your defense organization, an how information is consumed. The future is here.

52%of manufacturing companies expect to be highly vertically integrated in the next five years 39

16%worldwide defense procurement increase by 2018 above 2014 levels 2

87%of finance executives agree that meeting growth targets requires faster data analysis, but only 12% are able to respond to information requests in real-time 38

SAP HANA PLATFORM

Military Supply Chain

Maintenance and Engineering

Military Planning and Operations

ProcurementBudget and FinanceHuman Resources

Force element basics


100-150 mobile appsAnticipated in the US Army Training & Doctrine Command (TRADOC) Application Gateway 42

A single platform that brings all operator-facing functions together (such as SAP Hybris omnichannel solutions) to ensure seamless digitization of their entire experience.

By focusing on the outcome and not on the “how” with the rapid introduction of disruptive technologies, we will see improved operational effectiveness by means of:

• Orchestrating business processes across operator facing functions

• Delivering personalized experiences in context with each interaction

• Creating a single, harmonized experience for each operator, while reducing the burden on personnel

• Being prepared to engage the operator on the channels they choose at any moment while on operations

• Full integration with your core business processes

Three key trends are reshaping the operator experience:

Outcome economy

The outcome economy requires a deep change in operating concepts and new organizational and business process capabilities. This change removes artificial barriers to delivering capabilities within the digital defense network.

Operator engagement

Operators choose how they engage across multiple channels at their convenience – the pattern that emerges is not linear, as in the past.

Big Data and insight in near real time

Big Data allows defense organizations to sense and respond to operators’ needs in real time and predict the next, best step for meeting these needs.

OPERATOR EXPERIENCE

Digitize your end-to-end operator engagement with SAP

$5.8 million dollarsin estimated annual cost avoidance in fuel and print savings via delivery of electronic flight information publications and digital publications in the US Air Force 41

86%of consumers are willing to pay more for a better consumer experience 40

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


83%of executives indicate they’re increasingly using contingent workers ‒ at any time, on an ongoing basis45

34% of executives feel that they’ve made progress in building a workforce that can meet future business goals45

Digitize your people with SAP: SAP S/4HANA, SAP SuccessFactors solutions, SAP Fieldglass solutions, and SAP Fiori provide thetools for total personnel engagement and advanced analytics.• Attracting the best people. Recruit and onboard the best people, simplify their work, and ensure that regulatory and compliance

requirements are met, using social medial as an additional channel to recruit new members• Managing the total personnel lifecycle. Manage the total personnel lifecycle from recruiting and onboarding, to performance,

compensation, and learning – all in one place• Smarter apps with greater user experience. Enable personnel to easily access the right information across any device and through

a dramatically simplified user experience

PERSONNEL ENGAGEMENT

Complexity is a challenge for workforce engagement. People are working harder than ever but are not necessarily accomplishing more. Personnel do not have access to smart, consumer-grade technology to work faster, better, and more efficiently. Organizational complexity is driving costs up and slowing down progress. Four forces need to be addressed:

Changing of the guard

Millennials will make up as much as 75% of the U.S. workforce by 2025.43 This will require a personnel strategy to address this new reality.

Contingent labor is on the rise

To drive agility, lower fixed cost defense organizations are turning more and more to contractors and services providers.

Flexible organization

Adjust capabilities to address emerging situations with modular force elements.

Complexity is on the rise

Managing your blended workforce 24x7 around the globe is a complex endeavor. Regulations are changing by the day and are hindering speed and agility.

Relevant and responsive learning

Incorporate new delivery methods that can tailor the pace of study in different subjects to the students’ strengths and weaknesses, ensuring more effective learning through their continuum of education.44

Improve your total personnel productivity. Simplify with SAP

30% of executives say their companies give special attention to the particular wants and needs of millennials45

The world is getting smarter in the digital economy, but complexity is hindering the workforce in this pursuit.

Contextual Intuitive

Adaptive and predictiveAnywhere/anytime

Secure

SMARTER APPS WITH IMPROVED USER EXPERIENCE

SAP Fiori

FLEXIBLE WORKFORCE LIFECYCLE

Recruiting/onboardingTime and expenseInvoicing/paymentStatement of work

Performance managementWorkforce analytics

EMPLOYEE LIFECYCLE

Recruiting/onboardingPerformance and goals

Succession and developmentCompensation

Employee record and payrollTravel and expenseWorkforce analytics

Learning


BUSINESS NETWORKS AND SUPPLIER COLLABORATION

SAP S/4HANA gives you incredible capacity to digitize processes across your internal business operations. It is the connections to our customers’ global partner network that enables you to extend those processes externally beyond the four walls of your organization. • Concur, SAP Ariba, and SAP Fieldglass cloud solutions for travel, direct and indirect material, and labor and services –

connected, effortless, and at scale• Business networks operate on a global basis, meet data security standards, and operate at industry best standards• Leverage services from partners to vastly extend the value of core offerings

Individual industry boundary lines have blurred, and defense organizations have to reimagine procedures to remain agile and best serve their nation in the new digital economy. From securely sharing data in real time, to providing personalized and contextual insights, performance-based logistics, pooling, and sharing, collaboration across the entire value chain is key to achieving desired outcomes. Major equipment acquisitions will occur far less frequently; instead, defense organizations will buy capability and outcomes. Several trends are redefining the game:

Network of networksAn open network serving a single market (such as travel, suppliers, labor) is valuable to its ecosystem, but a trusted vertical network that connects to other trusted vertical networks in real time is revolutionary and can only be accomplished through a shared set of cloud-based services built on top of the SAP HANA Cloud Platform.

Business connectivity at scaleThe greatest challenge/opportunity in connecting vast ecosystems is to gain value out of the exponential data growth generated and consumed by the network. Establishing digital relationships with trusted partners and processing petabytes of data in real time are the core requirements to becoming the de facto standard. Only SAP offers the platform to meet this challenge.

Consumer experience Business applications must be effortless to learn and use, as is the case with iTunes, Amazon, or Google.

Networked companies

are 50% more likely than their peers

to have increased sales, higher profit margins, and be a market leader46

Connect the whole digital defense network

Business-to-business (B2B) transactional inefficiencies provide potential for billions worth of savings per year from sourcing and transacting, to payment processing.

50–75% faster transaction cycles are being achieved with the Ariba Network47

25–50%of travel bookings are “out of compliance” with limited corporate control or visibility 8

Manage expenses Labor and services Direct and indirect material


.

$4–11 trillionEstimated potential economic impact of the Internet of Things per year by 202549

6.4 billionconnected things will be in use worldwide in 2016, up 30% from 2015, and will reach 20.8 billion by 2020.48

Port of Hamburg brings together port and road traffic conditions, truck availability and incoming/ outgoing shipment schedules to reduce idle truck/ship time. The solution allowed the port to increase container handling capacity by 178% within the same land area.50

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 leverage the information across the value chain to drive insights and enable new operating concepts.

Defense organizations are beginning to harness the full potential of the interlock between physical and digital assets and the internet of things. We are witnessing new use cases across industries with breathtaking results. Below are some key trends.

Smart products drive new operating concepts and procedures

Defense suppliers are embedding sensors in their products and, as a result, are increasingly becoming service providers and rethinking the value delivered by their offerings provided to defense organizations.

Technology-driven value chain

Defense organizations are spending more and more on Big Data and sensor technologies as many functions are transformed by these new technologies.

Collaborative and cooperative digital defense network

Seamless collaboration around new business models involving partnerships that may not have made sense few years back. Examples include defense organization partnerships with myriad providers such as satellite/weather/ leasing/logistics/security/etc. companies.

Connect, transform, and reimagine with SAP

The most dramatic changes in digital defense will be driven by hyperconnectivity and Big Data science. These will transform nearly every operating concept and procedure.

SAP HANA


Dream, develop, and deliver with SAP HANA Cloud Platform

SAP HANA Cloud Platform gives you the mobile, collaboration, integration, and analytic 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 operators, optimize processes, and provide them 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 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

US ArmyThe Logistics Modernization Program leverages SAP HANA to provide the US Army the ability to manage rapidly growing data volume in its integrated supply chain, maintenance, repair and overhaul (MRO) operations that currently handles 2 million transactions daily, $25.5 billion in inventory, 50,000 vendors, and over 21000 users (and growing). The solution reduces planning cycle and deliver real-time reporting and analysis51

36%Lower budgeting and forecasting costs for organizations where the finance organization is able to update forecasts and conduct simulations8

SAP HANA PLATFORM – A NEW COMPUTING PARADIGM

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

Digital Core

SAP HANA PLATFORM

Real-time platform

Real-time applications

Real-time analytics


HOW DOES IT ALL COME TOGETHER? – EXAMPLE

The digital defense network illustrates how both open source intelligence harvested through social media, platform sensor data, and weather and digital imagery are seamlessly fused to form the current intelligence picture. In parallel, the commander is able to monitor the resource situation and react to fresh task orders. As necessary, the maritime interdiction force is replenished and undergoing joint rehearsals.

Based on the current and real-time intelligence report in conjunction with a shared common operation picture, the commander is able to review the options, prioritize, initiate, launch, and coordinate the mission.

Finally, the maritime commander is able to report on the success of the mission to political stakeholders, reset the force’s posture, and await the next tasking.

While each of the five digital business pillars delivers significant value as a stand-alone capability, the ultimate goal is to design the next generation of business processes that will span across all the digital pillars. Conducting drug interdiction at sea will not stop at dispatching military boarding parties. The whole digital defense network has to be aligned with the desired outcomes and optimize the limited available resources through pervasive situational awareness.

The predictive nature of the future solution will change how the coalition operates by anticipating need and harnessing the synergistic effect of the digital defense network, and will also ultimately change how maritime drug interdiction operations are conducted by mitigating the risk of surprises. Decision-makers and their staff can rapidly develop pragmatic options to achieve the desired outcomes. The benefits of this scenario are significant:• Operate in communication-challenged environments• Achieve seamless collaboration• Maximize situational awareness• Minimize duplicative effort• Prioritize deployment of available resources• Promote maritime security• Prevent illegal traffic in drugs and, in turn, improve quality of

life

AGILE MARITIME DRUG INTERDICTION OPERATIONS:PROMOTE MARITIME SECURITY IN ORDER TO COUNTER TERRORIST ACTS AND ILLEGAL ACTIVITIES52

30–50% reduced enterprise-wide IT spend on data integration8

20-30% reduced time spent by business staff compiling information8

10–15%improvement in decision-making through better information availability8

Digital core

Supplier collaborationBusiness networks

Personnel engagement

Assets & Internet of Things

Time

Operator experience

Reset resource posture

Coordinate boarding party

actionsShared

common operating

picture

Mission rehearsal

Current resource posture

Weather forecast

Social media sentiment analysis

Review options and decide

Replenishment at sea

Collect digital imagery

Report success

Prioritize taskingsTaskings

Collect sensor data


WHY SAP?

DEFENSE DIGITIZATION IS A NATURAL NEXT STEPIt took years of innovation, strategic investment, and the forging of new strategic relationships to build the end-to-end digital defense platform.



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

FIRE AND RESCUE

New South Wales is now able to have a comprehensive view of fire and disaster risk to protect 7 million residents. 30+ years of experience available in real time in SAP HANA ensures that the right people are addressing emergencies at the right time.53

EARLY FLOOD DETECTION IN INDIA

With SAP HANA and SAP Predictive Analytics, water levels can be monitored in real time to alert the population about floods and ultimately save lives.54

GLOBAL PRESENCE AND

RELEVANCE

DIGITAL ECONOMY

- READY

INNOVATION LEADER

• 95 million business cloud users

• 2.0 million connected businesses

• $740 billion+ in B2B commerce

• 99%+ of mobile devices are connected with SAP messaging

• 77K employees representing 120 nationalities

• 300K customers

• SAP operates in 191 countries

• 57 of the world’s military forces run SAP

• 22 of 28 NATO countries run SAP

• >675 customers worldwide

• The United Nationsruns SAP

• 2011 SAP HANA launched

• 2012 SAP Cloud launched

• 2014 SAP businessnetworks are the largest marketplace in the world

• 2015 SAP HANA Cloud Platform

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

INDUSTRY FOCUS


END-TO-END DIGITAL DEFENSE SOLUTION

SAP will bring expertise, assets, and the proven methodologies required to support the development of your digital strategy. These capabilities will be leveraged throughout SAP’s collaborative value and innovation framework.

Experts In 25 industries and 12 lines of business

6,000+ Design Thinking experts –sales, services, development

User experience of the future

Enterprise architecture

Data scientists

Business case methodology

Design Thinking

Benchmarking

Value partnership framework

60+ business process benchmarking and best practice assessments

600+ industry-focused innovation scenarios

Innovation case studies by industry

Infrastructure to drive proofs of concept

13+ co-innovation and living labs with 470+ customer co-innovation/Design Thinking discussions since 2014

METHODOLOGYEXPERTISE ASSETS

Through our innovations and over $30 billion in strategic acquisitions, SAP has the best solution portfolio and expertise required to enable your digital strategy. SAP is the largest cloud company with 80 million+ users and the fastest growing solution portfolio to support the entire digital value chain. With 74% of the world’s transactions running through SAP, 7,200+ customers leveraging SAP HANA, and 1,600+ customers leveraging our Internet of Things technologies to drive new operating concepts, SAP is the preferred choice to turn your digital vision into reality.

Digital coreAssets &

Internet of Things

SAP HANA Cloud Platform

Suppliercollaboration

Business networks

Operator experienceOmnichannel

SAP Cloud for Customer

Personnelengagement

SAP Fiori


SAP GLOBAL SERVICES AND SUPPORT TO DRIVE YOUR SUCCESS

In digital defense, simplification and 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 offers both choice and value within our services, allowing you to tailor the proper approach based on your needs.

Turn to the consultants and support professionals who can bring your digital strategy to life. SAP’s Global Service & Support (GSS) organization 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 consists of a combination of SAP Best Practices, methodology, and guided configuration. In addition, we offer leadership based on our four-panel approach to drive quick time to value realization and a solid strategic engagement foundation with SAP MaxAttention and SAP ActiveEmbedded 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


Our comprehensive ecosystem offers: • A wide range of business services• 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• A forum for influence and knowledge • Large local and regional skill sets

The Defense Interest Group (DEIG) is a customer user group formed in 1999. The group meets twice a year with the purpose of networking, educating each other, and influencing SAP.

SAP COMPREHENSIVE ECOSYSTEM

Orchestrating the world to deliver faster value

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

• 2,700 startups developing SAP HANA apps

IMPLEMENTATION SERVICES

CHANNEL AND SME

INFLUENCE FORUMS AND EDUCATION

• 32 user groups across all regions

• 40+ industry councils

• SAP community >24 million unique visitors per year

• 2,650 SAP University Alliances

• 4,800 channel partners

PLATFORM AND INFRASTRUCTURE

• 1,400 cloud partners

• 1,500+ platform partners

INNOVATION

• 2.0 million suppliers

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

• SAP Fieldglass solutions manage 1.5 million temporary workers year

BUSINESS NETWORK

DRIVING CUSTOMER

VALUE

• 13.3K partner companies

• 3,200 service partners

• Delivering 1,300+ industry-specific solutions


1. “Accenture Defense Technology Vision 2015”, Accenture Consulting, 2015 https://www.accenture.com/us-en/insight-accenture-defense-technology-vision-2015.aspx

2. “Global Defense Outlook 2015, Defense and Development”, Deloitte figure 10 http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Public-Sector/gx-2015-deloitte-global-defense-outlook.pdf

3. Responding to Capability Surprise: A Strategy for U.S. Naval Forces -http://www.nap.edu/catalog/14672/responding-to-capability-surprise-a-strategy-for-us-naval-forces

4. ‘Win In a Complex World – But How? Interview with Gen. David G. Perkins - US Army Acquisition Support Center -http://asc.army.mil/web/access-win-in-a-complex-world-but-how/

5. “Embracing Digital Technology” MIT Sloan and CapGemini, 2013, Chapter 3 exhibits http://sloanreview.mit.edu/projects/embracing-digital-technology/#chapter-3 /

6. “Smart Defence”, North Atlantic Treaty Organization, September 2015 http://www.nato.int/cps/en/natohq/topics_84268.htm

7. “Small Wonder Can Lighten the Soldier’s Load”, Will Stirling, https://interact.innovateuk.org/documents/3329929/3676148/A+-+WIll+Stirling,%20Small+wonder+can+lighten+the+soldier+load.pdf/bae734bf-d223-444b-90c9-dee2735153ec

8. SAP Benchmarking*9. Internet World Statistics” December 2015

http://www.internetworldstats.com/emarketing.htm

10. NATO Interoperability Standards, https://nhqc3s.hq.nato.int/Apps/Architecture/NISP/index.html

11. Source: SAP Fact Sheet, http://www.sap.com/bin/sapcom/en_us/downloadasset.2016-01-jan-26-01.SAP-Corporate-Fact-Sheet-En-20160126-pdf.bypassReg.html

12. “Number of Social Network Users Worldwide, 2015” http://www.statista.com/statistics/278414/number-of-worldwide-social-network-users/

13. “The Internet of Things: Making sense of the next mega-trend”, Goldman Sachs, 2014, (page 4) http://www.goldmansachs.com/our-thinking/outlook/internet-of-things/iot-report.pdf

14. “IT budgets 2016: Surveys, software and services”, Sunny Gupta, co-founder and CEO of Apptio, ZDNet, October 2015 http://www.zdnet.com/article/it-budgets-2016-surveys-software-and-services/

15. “Energy-efficient In-Memory Computing for SAP HANA Powered by In-Time Engine”, Deloitte, 2015, http://www2.deloitte.com/content/dam/Deloitte/de/Documents/technology/DELO_SAP-HANA-Folder_ks5-print.pdf

16. “In-Memory Computing Technology, The Holy Grail of Analytics” Deloitte, 2013, pg4 http://www2.deloitte.com/content/dam/Deloitte/de/Documents/technology-media-telecommunications/TMT_Studie_In_Memory_Co

mputing.pdf17. “Roundup Of Cloud Computing Forecasts And

Market Estimates” Forbes, 2015, http://www.forbes.com/sites/louiscolumbus/2015/01/24/roundup-of-cloud-computing-forecasts-and-market-estimates-2015/(Soundbites used are from Forrester and Goldman Sachs)

18. “Marine Corps Center for lessons learned”, United States Marine Corps, August 2012 (Page 5) http://www.defenseinnovationmarketplace.mil/resources/USMC_LessonsLearned.pdf

19. “The Age of Smart, Safe, Cheap Robots Is Already Here “ HBR, 2015 https://hbr.org/2015/06/the-age-of-smart-safe-cheap-robots-is-already-here

20. NATO Brochure, Smart Energy, June 8, 2015, page 18 http://natolibguides.info/ld.php?content_id=11503315

21. “3-D printing takes shape”, McKinsey Global Institute, 2014 http://www.mckinsey.com/insights/manufacturing/3-d_printing_takes_shape

22. “Cybersecurity in the Federal Government”, Solarwinds, June 15, 2015 http://www.solarwinds.com/assets/infographics/cybersecurity-in-the-federal-government.aspx

23. “Internet Security Threat Report (ISTR), Volume 20” , Symantec, 2015 http://www.cioinsight.com/security/slideshows/how-cyber-criminals-infiltrate-the-enterprise.html

24. “Net Losses: Estimating the Global Cost of Cybercrime”, McAfee, 2014 (Page 2) http://www.mcafee.com/us/resources/reports/rp-economic-impact-cybercrime2.pdf

25. “Coalition Virtual Flag”, Royal Australian Air Force, September 2015 https://www.youtube.com/watch?v=Jrs-Z-Myvn4

26. Disposable Biometric Patch to Monitor Stress and Fatigue in Military Personnel May Be Adapted to Monitor Biomarkers” Dark Daily, December 10, 2014 http://www.darkdaily.com/cheap-disposable-biometric-patch-to-monitor-stress-and-fatigue-in-military-personnel-may-be-adapted-to-monitor-biomarkers-used-by-clinical-pathology-laboratories-1210#axzz3lAQ97nR3

27. “Northrop Grumman predictive-maintenance models to head-off Air Force airframe cracks” Military & Aerospace Electronics, December 26, 2013 http://www.militaryaerospace.com/articles/2013/12/predictive-maintenance-models.html

28. “Digital Warrior, Envisioning Digital Solutions for Superior mission Effectiveness”, Booz Allen Hamilton (Page 7) http://www.boozallen.com/content/dam/boozallen/documents/2014/08/digital-solutions-superior-mission-effectiveness-vp.pdf

29. Annual Chief of the Defence Staff Lecture”, RUSI, December 2014, Sir Nicholas Houghton, Chief of Staff, UK Defence Ministry, on the impact of Big Data https://rusi.org/event/annual-chief-defence-staff-lecture

30. “Multinational Modular Medical Units (Field Hospitals)”, European Defence Agency, January 20, 2014 http://www.eda.europa.eu/docs/default-source/eda-factsheets/2014-01-20-factsheet_field-hospitals.pdf

31. “Smarter Defence – Optimise to Transform” SPADE 2012, https://www-304.ibm.com/events/wwe/grp/grp011.nsf/vLookupPDFs/Optimising%20Fleet%20Availability%20-a%20Military%20Industry%20win-win%20approach%20-%20Andre/$file/Optimising%20Fleet%20Availability%20-a%20Military%20Industry%20win-win%20approach%20-%20Andre.pdf

32. “Varian: Improving Training for Product Support Engineering with SAP® 3D Visual Enterprise” https://dam.sap.com/dam-ws/download?id=PtwBCscbOdR4cx%2BuMwHq5udNx5p4cVxq25Sv9le0W9dJvN75UCqDAkykf4Jt%2BDRy

33. “Transport for London using SAP HANA for IoT and big data processing” Sooraj Shah, V3 UK, March 2, 2016 http://m.v3.co.uk/v3-uk/news/2449321/transport-for-london-using-sap-hana-for-iot-and-big-data-processing

34. The impact of enterprise resource planning systems on Army sustainment, US Army, May 5, 2014 http://www.army.mil/article/125011/The_impact_of_enterprise_resource_planning_systems_on_Army_sustainment/?from=RSS

35. “3D printing transforms the RCN” Navy News, February 26, 2016 http://www.navy-marine.forces.gc.ca/en/news-operations/news-view.page?doc=3d-printing-transforms-the-rcn/il3c32xa

36. Boosting Productivity with Mobile 3-D Product Visualization Technology, Aviation Week/SAP 2012https://dam.sap.com/mac/preview/a/67/mJnAncmngJJAmyAAJ1wglnEDynnEmylSXAl2APmAlVXyHlAv/Northrop%20Grumman%20whitepaper%20on%20Mobility%20&%203D%20VE.htm

37. “The Yakka OCS, an innovative use of RFID” IBM Forum, http://www-07.ibm.com/events/nz/forum06/pressos/pdf/1345_RFID_Yakka_and_NZ_Defence.pdf

38. New technologies transforming the finance function”, HBR, 2015, (Page 1 and 2) https://hbr.org/resources/pdfs/comm/sap/Report_SAP_new_technologies_transforming_the_finance_function.pdf

39. “The Chief Supply Chain Officer Report 2014”, SCM World, September 2014 (Page 15 and 18) http://www.e2open.com/assets/pdf/papers-and-reports/SCMWorld_Chief_Supply_Chain_Officer_Report_2014.pdf

40. “2014 Global Consumer Barometer Index, American Express and Ebiquity”, 2014, (Page 8) http://about.americanexpress.com/news/docs/2014x/2014-Global-Customer-Service-Barometer-US.pdf

41. “MAF Electronic Flight Bag: Game Changer”, US Air Force, May 5, 2014 http://www.amc.af.mil/news/story.asp?id=123409694

42. “TRADOC opens app store”, US Army, October 30, 2015 http://www.army.mil/article/157984/TRADOC_opens_app_store/

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


43. “11 Facts about the Millennial Generation”, Brookings, June 2014 http://www.brookings.edu/blogs/brookings-now/posts/2014/06/11-facts-about-the-millennial-generation

44. “America’s Air Force: A Call to the Future”, July 2014 (page 9) http://airman.dodlive.mil/files/2014/07/AF_30_Year_Strategy_2.pdf

45. “Workforce 2020: The Looming Talent Crises” Oxford Economics, 2014 http://2020workforce.com/

46. “The rise of the networked enterprise: Web 2.0 finds its payday” McKinsey, 2010, http://www.mckinsey.com/insights/high_tech_telecoms_internet/the_rise_of_the_networked_enterprise_web_20_finds_its_payday

47. “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

48. “Gartner Says 6.4 Billion Connected "Things" Will Be in Use in 2016, Up 30 Percent From 2015”, Gartner, November 2015 http://www.gartner.com/newsroom/id/3165317

49. “Unlocking the potential of the Internet of Things”, McKinsey Global Institute, 2015, http://www.mckinsey.com/insights/business_technology/the_internet_of_things_the_value_of_digitizing_the_physical_world

50. “Simpler Connections at Germany's Largest Seaport”, SAP Customer Success Story http://www.sap.com/customer-testimonials/transportation-logistics/hamburg-port-authority.html

51. “The U.S. Army Builds on SAP SCM with an Adoption Path for SAP HANA” SapphireNow Online 2015http://events.sap.com/sapphirenow/en/session/9672

52. “CTF 150: Maritime Security”, Combined Maritime Security https://combinedmaritimeforces.com/ctf-150-maritime-security/

53. “Saving Lives and Property with Data”, SAP Success Story, http://www.sap.com/customer-testimonials/public-sector/fire-rescue-new-south-wales.html

54. “Flood Monitoring & Forecasting using SAP HANA” http://scn.sap.com/community/hana-in-memory/use-cases/blog/2015/04/02/flood-monitoring-forecasting-using-sap-hana

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

Note: Logos contained in this document are used with the permission of SAP's partners.

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


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