revolutionize asset management with global collaboration

Asset Intelligence Network

Revolutionize Asset Management with Global CollaborationConnect Machines and Businesses Everywhere in One Seamless Network

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2 / 9© 2016 SAP AG or an SAP affiliate company. All rights reserved.

Table of Contents

3 Harnessing the Internet of Things and Cloud Technology

7 Examining Market Drivers for Networked Asset Management

11 Sampling the New Capabilities

16 AddingUptheBenefits

This document describes SAP’s vision, strategy, development, and commitment for enterprise asset management solutions from SAP and their future role and position within SAP’s overall solution portfolio.

The vision and road map described in this document are those that SAP currently plans to realize. To react to shifting markets, SAP may postpone, cancel, or accelerate some of the planned functionalities for any number of reasons and at any time.

3 / 19© 2016 SAP SE or an SAP affiliate company. All rights reserved.

IMPROVING COLLABORATION IN THE ASSET MANAGEMENT ECOSYSTEM

Various groups involved in the management of capital assets have specific goals and requirements. Asset operators want to minimize capital investments, operational over-head, and risks. They prefer to buy the services provided by equipment rather than the equipment itself. Original equipment manufacturers (OEMs) want to increase revenue growth and sharpen competitive advantage with bundled products and services. And service providers want to offer value-added services enabled by technological innova-tions. Each of these groups can benefit from a simplified collaboration model.

Imagine a single cloud-based Internet of Things linking all the equipment in an ecosystem. Now visualize a host of applications running on this collaborative platform to simplify maintenance and enhance cooperation for complex tasks. Envision built-in analysis that inspires innova-tion for managing assets as a service or rede-signing them based on performance. Welcome to SAP® Asset Intelligence Network.

Harnessing the Internet of Things and Cloud Technology


The need to transition to the digital economy makes automated data exchange essential. The new Internet of Things (IoT) and cloud and business network technolo-gies will make it happen. We can now engender a new depth and breadth of collaboration among asset man-agement stakeholders – and their equipment – by means of data-exchange networks.

An SAP Performance Benchmarking survey shows that 96% of organi-zations believe that the digital economy and the IoT will have significant impact on innovation and efficiency.

SAP Asset Intelligence Network can help you manage assets as a service or redesign them based on performance.


Announcing SAP Asset Intelligence NetworkSAP leads the next wave of asset management innova-tion by bringing the asset ecosystem partners onto a single cloud-based collaborative network platform called SAP Asset Intelligence Network.

We envision SAP Asset Intelligence Network as a central hub that serves first as a global register of the equipment in an extended ecosystem. Each asset element has a unique ID that authorizes the publication of and subscription to content on the network.

SAP intends to build a host of applications to help operators and OEMs: • Install a digital twin in their enterprise asset management (EAM) system to represent each physical machine

• Standardize equipment management through asset master data and spare-parts information available for update from the network

• Streamline maintenance through access to the latest task lists and service bulletins on maintenance strategies

• Achieve collaborative design and execution for complex installation or maintenance procedures

• Institute collaborative network services for managing equipment, collecting asset performance analysis and feedback, and fostering usage-based design enhancement

SAP Asset Intelligence Network provides a user-friendly visual experience from the first day of operation through the full lifecycle of the equipment.


Stakeholders can integrate their existing enterprise resource planning (ERP)–based EAM or service manage-ment systems with SAP Asset Intelligence Network to derive maximum value.

TargetingSignificantBusinessBenefitsThere is significant value potential for operators in moving to SAP Asset Intelligence Network. They can expect to:

• Improve asset data quality and transparency across manufacturers

• Reduce capital expenditure and maintenance costs • Improve asset reliability and employee productivity • Simplify collaboration by storing common metadata on the network

• Shorten issue response times and enrich decision making

Why SAPSAP can use its co-innovative partner base and in-house enterprise application expertise to support customers through:• A global scale that encompasses 300,000 customers in 191 countries,

74% of the world’s transactions, and 80 million business cloud users• A large existing footprint with OEMs and in asset-intensive and

service-provider industries• A structured, enterprise-level business context for collaborative IoT

capabilities• Native integration of our major business systems in order to preserve

existing investments


Examining Market Drivers for Networked Asset Management

We are at the point where business drivers such as cost, risk, and performance combine with technological inno-vations such as automation, real-time diagnostics, and connected assets to initiate a quantum leap in maintenance operations.

CAPITALIZING ON NEW TRENDS, BUSINESS MODELS, AND TECHNOLOGIES

Trends toward sustainable operations have helped tighten maintenance processes and bolster the change from reactive to proactive maintenance. Operators are learning the value of collaboration with OEMs and engineering, procurement, and construction (EPC) contractors to

optimize maintenance processes and asset improvement programs. The market has developed a new focus on life-cycle cost management and maintenance services. And new paradigms are arising – for example, as OEMs move to whole-of-life sales and service and pay-per-use or operation-by-hour models.

And on the technological front, connectivity mechanisms and sensors abound, the IoT is helping machines talk to one another, and successful management of Big Data is facilitating predictive maintenance. Cloud technology is lowering costs and improving standardization, while additive manufacturing and 3D printing are streamlining supply chains.


FACING THE CHALLENGES

Industry has not yet fully integrated the asset manage-ment chain. There is little consistent definition of model information, and every OEM and operator typically uploads the same data manually – possibly introducing errors and delays that make the data incorrect. Lack of complete, con-sistent, consumable equipment data hampers future pur-chasing and maintenance decisions. Business processes

for asset management are rarely integrated across enter-prise boundaries, which helps keep everyone in the dark. And how do we integrate the various silos that hold infor-mation on design, performance, procedures, and inventory?

SAP Asset Intelligence Network, as conceptualized in Figure 1, answers these challenges by providing a secure cloud plat-form that serves as a central clearing house and commu-nications hub for all stakeholders in asset management.

A host of applications running on the network make master data and spare-parts information immediately available for update from the network.


Figure 1: Streamlined Collaboration with SAP Asset Intelligence Network

*Engineering, procurement, and construction contractors

TOFROM

SAP® Asset Intelligence Network

Manufacturers

Service providers

Operators

EPCs*

Dealers

• One network to manage asset information• Standardized equipment model information• Publishing and subscription

• No visibility• Inefficiencies• High rates and

costs• Quality issues• Compliance

issues


BUILDING ON FOUR KEY PILLARS

To help OEMs, operators, and service providers meet the challenges of asset management head-on, SAP plans to take

advantage of the evolving trends and technologies that en-courage universal interconnection. We build our web of key stakeholders on four principles we call pillars. This table sum-marizes those four pillars of SAP Asset Intelligence Network.

Pillar Description Purpose

Content Single register of the world’s assets, providing unique IDs and associated metadata in a global taxonomy

Provide the foundation for collaborative asset management and customer service processes

Network Platform for interconnecting asset manufacturers, operators, and service providers

Allow the exchange of performance feedback, analytics output, and best practices on deployment strategies and maintenance procedures

Applications Software to perform multiple functions on the cloud-based network platform

Help customers share advanced analytics and collaborate on processes for equipment management and maintenance execution

Integration Native integration with various SAP solutions Facilitate smooth data exchange among enterprise and plant systems and all stakeholders on the network

THE FOUR PILLARS OF SAP® ASSET INTELLIGENCE NETWORK


DEEPENING VISIBILITY ACROSS FUNCTIONS

A single central repository for all maintenance-related data lies at the heart of SAP Asset Intelligence Network, as shown in Figure 2. This sharing of core data helps foster a single version of the truth across functional boundaries. The graphic content in photographs, multidimensional models, and videos often helps viewers understand complex concepts more quickly and reliably than text.

Sampling the New CapabilitiesUTILIZING VISUAL SPARE-PARTS CONTENT

OEMs publish a recommended list of spare parts to SAP Asset Intelligence Network as part of the model information. This list typically consists of several 2D or 3D logical bills of materials with the manufacturer part number overlaid on the corresponding part of the visual-ization. Field workers always have clear, complete spare-parts information at their fingertips, so they can work quickly and accurately even on their own.

Operators and OEMs can streamline maintenance procedures through access to the latest task lists and service bulletins on maintenance strategies.


Figure 2: Centralized Delivery of Key Benefits

Business context for predictive maintenance

0100101011101001010100101000101010010010100010111010010101001010001010100100101000101

Quality, inspection, and calibration results sharing

Usage-based design enhancements

Service bulletins, recalls, and warranty

Managing equipment as a service

Visual audit and nameplate recognition

Analyzing equipment performance

Collaborative work execution and results sharing

Global job catalog, visual work instructions,and task lists

Visual spare-parts content for maintenance, repair, and

operations

Shared model database

Business partner network services

Global equipment

registry


VISUAL NAVIGATION

While inspecting equipment, the user can navigate through a visual representation of the equipment itself, and the images can be “hotspotted.” Hotspots are custom areas within a picture, document, or 3D model that link the user to related content. Current features include:

• Links from parts of an image to service instructions for the equipment or to a zoomed-in picture of a spare part

• Hierarchical reference to the parent model • Visual navigation to plants, plant areas, and equipment

ESTABLISHING A GLOBAL CATALOG OF JOBS, INSTRUCTIONS, AND TASKS

Operators can use the network to build a global library of recommended maintenance strategies, available mainte-nance plans, upkeep and repair jobs, and safety instructions. OEMs publish updates directly to SAP Asset Intelligence Network, and the network automatically alerts operators that new information is available. Built-in application pro-gramming interfaces link this data to the local work man-agement system, such as the one in the SAP S/4HANA suite.

All members of the network collaborate to increase productivity, shorten issue response times, and enrich decision making.


CLARIFYING THE BUSINESS CONTEXT FOR PREDICTIVE MAINTENANCE

All stakeholders in asset management – OEMs, operators, and service providers alike – are shifting from reactive maintenance to a predictive model. SAP Asset Intelligence Network will provide them the business context for pre-dictive maintenance and service. Advanced analytics for trend analysis yields better results across the full network, and the software can alert both manufacturer and operator of imminent shortfall or failure.

IMPROVING PERFORMANCE THROUGH COLLABORATION

OEMs, operators, and service providers on the network can record and share information about maintenance history, including installation strategies and usage trends. With this supporting data, they can collaborate effectively on improving machine design to help ensure consistent standards-based coding, eliminate unused functionality, and reduce failures. Such efforts ultimately lower operating costs, simplify maintenance, and increase profits.

Collaboration is a core element of the SAP vision. As our CEO Bill McDermott says, “Partnering is not a choice for SAP. The choice has been made. Together we will lead, energize, and imagine a better future.”


The announcements feature in SAP Asset Intelligence Network is key to maintaining a single version of the truth among collaborators. Whenever the manufacturer makes a change to equipment or parts being used, an announce-ment of the change is issued and posted to the network. Announcements apply to:

• Job instructions • Service bulletins • Recall notices • New models • Spare parts • Model updates • Document updates • New policies

MANAGING EQUIPMENT AS A SERVICE

The shift toward managing equipment as a service encourages OEMs to bundle value-added services with machinery and helps operators lower capital outlay and risk. With SAP Asset Intelligence Network, OEMs can moni-tor asset performance and operating conditions to predict failure and schedule maintenance, repair, or replacement. Both parties benefit from lower asset management over-head, improved communication, greater equipment avail-ability, and increased visibility into planning and scheduling windows and third-party inspections.


INTEGRATING WITH SAP S/4HANA AND THE CLOUD

Whether a company owns, operates, and maintains its assets; owns and operates assets but outsources mainte-nance; or subscribes to the equipment-as-a-service model, SAP Asset Intelligence Network natively extends the SAP S/4HANA suite to facilitate business-to-business integra-tion for asset data. SAP HANA® Cloud Platform uses the SAP ID service as its default identity provider through SAP Asset Intelligence Network. Users can also configure a custom identity provider to provide access to the platform through local databases.

Adding Up the BenefitsMANAGING RECORDS ACROSS AN SAP SOFTWARE ENVIRONMENT

Equipment records in operator enterprise management systems link to the equipment records in the network, which in turn link directly to the manufacturer model. It is also possible to link new records through the SAP Master Data Governance application. An operator company or its representative can reference the equipment ID to request additional model details from the manufacturer at any time.


PUBLISHING AND MANAGING CHANGES

OEMs can significantly streamline release procedures by publishing a model record once into the network for import into all operator and service provider systems. Changes on either end of the connection can be published quickly to all authorized business partners, taking local security protocols into account. Such immediate collaboration can increase job satisfaction, improve asset performance, and extend the life of valuable equipment.

BREAKING DOWN THE VALUE PROPOSITION

A quick summary of the numerous benefits of SAP Asset Intelligence Network begins with four general advantages: • The publish-and-subscribe paradigm makes information sharing fast and easy

• Common asset metadata among network stakeholders improves asset data quality and completeness in ERP systems

• Trustworthy data across the network and its member enterprises accelerates and enriches decision making

• Closer collaboration among network partners drives new innovations, increases asset efficiencies, and extends asset lifecycles

The table summarizes additional specific benefits SAP Asset Intelligence Network can bring.

The network benchmarks anonymized asset reliability metrics from various sites to help you identify global best practices.


THE VAST VALUE POTENTIAL OF SAP® ASSET INTELLIGENCE NETWORK

Category Value Capability Arena

Effectiveasset management processes

Increased revenues from faster project commissioning

Operators and contractors can source and validate missing asset information from the network

• Standardized equipment management

Reduced capital expenditure Engineering teams can investigate alternatives and tighten production expenses

• Collaborative network services

Improved asset availability Stakeholders can reduce asset downtime collaborating with OEMs and using updated information and predictive maintenance

• Maintenance process execution• Collaborative network services

Reduced spare-parts inventory Warehouses can reduce obsolete and excess inventory for B- and C-class spares per network updates

• Maintenance process execution• Standardized equipment management

Lower maintenance costs Operators can optimize maintenance activities through closer collaboration with OEMs and service providers


User productivity

Reduced effort locating and updating asset information

All members have access to updated information already integrated with enterprise systems

• Standardized equipment management• Collaborative network services

Shorter maintenance wrench time

Field workers always have up-to-date task instructions and spare-parts details


19 / 19Studio SAP | 41570enuS (16/02)

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

LEARN MORE

To learn how SAP Asset Intelligence Network can help streamline the management of valuable assets, visit www.sap.com/ain.

The network helps reduce regulatory reporting efforts by allowing authorized statutory authorities and independent assurance companies to view up-to-date information on inspection timing and results.

http://www.sap.com/ain

© 2016 SAP SE or an SAP affi liate company. All rights reserved.

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