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SAP’s Digital Transformation to Run Simple

SAP Transformation Study

© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Table of Contents

1. Why we need to transform 02 1.1. Digital Trends and their impact on SAP 03 1.2. Digital transformation impacts every Line of Business 04

along the entire value chain

2. The Run Simple Initiative 05 2.1. Transformation Approach 06 2.2. Transformation Principles 07 2.3. Enabling Technology 08

3. How SAP is Running Simple across all Business Units 09 3.1. Learn how SAP uses Data Management as the 11

Basis for Digital Transformation 3.2. Learn how Marketing at SAP boosts Pipeline Growth 15

powered by SAP Hybris 3.3. Learn how Sales at SAP Sells More in Less Time 21

powered by SAP Hybris Marketing and Sales 3.4. Learn how Finance at SAP drives business 26

performance in the digital world powered by S/4HANA

3.5. LearnhowProcurementatSAPSimplifiesProcesses 32 powered by SAP Ariba Solutions

3.6. LearnhowSAPsimplifiesTravelandExpense 37 Management powered by SAP Concur

3.7. LearnhowSAPsimplifiesExternalWorkforce 42 Management powered by SAP Fieldglass

3.8. Learn how HR at SAP Drives Employee Engagement to 47 theNextLevelpoweredbySAPSuccessFactors

3.9. Learn how SAP streamlines Enterprise Analytics to 54 achieveSteeringExcellenceintheDigitalAge

4. Want to learn more? 59


2SAP’s Digital Transformation to Run Simple

Customer / End-User

Shareholder Market Trends

delight

be profitable be predictable

grow leverage

differentiate

empathize

improved customer satisfaction

improved efficiency improved profitability

Operating Model

digitize reinvent

improved decision making improved reach

Analytics

Why we need to transform SAP is one of the largest and most well-established software companies in the world. Despite that,weexperiencethesamepressuresasotherorganizations.Wemustacceleratetoremaincompetitive in a changing economy.

Companiesareexpectedtogrowwhileexpandingonoperatingprofit,bepredictableandprovideauniquecustomerexperience.Inordertocatertothosemultipleobjectives,SAPneedsto reinvent our operating model. This model comprises all the ingredients that contribute to the company’s value generation—capabilities and processes, technology assets, and people.

EMPATHIZE WITH AND DELIGHT CUSTOMERS

Inadigitalworld,customerexpectationschange.Whether it'sB2CorB2B,theyexpecttobe able to buy whatever they want, whenever they want it. They demand a seamless cross-channel experienceavailableanytime. Trueempathyisexpectedateverytouch point along the customer journey,meaningcompaniesneed to be able to predict their customers’ needs.

GROW, EXPAND ON PROFIT, AND INCREASE THE SHARE OF PREDICTABLE REVENUE TO MEET SHAREHOLDER EXPECTATIONS

Inacloud/subscriptionbusiness,costs are immediate (cost of sales, cost of delivery) while revenue isratable.Averagedealsizeisdecreasing while at the same time transactional volume is rising. This requires careful management of process cost and customer retention to surpass the margin trough, and to be able to scale—especially through automated down stream processes.

LEVERAGE DIGITAL TRENDS TO STAND OUT IN THE MARKET & STAY AHEAD OF THE CURVE

Typically process design comes first,andtechnologytoenablethosecapabilitiesfollows.Inadigital world, technology innovation also triggers process innovation—business models arise from trends that have not been there before. To stay ahead of the pack, companies need to quickly leverage those opportunities to change and differentiatethemselvesfrequently.



Machine Learning

Internet of Things

Augmented Reality

Block Chain Cloud Computing

Social Mobile Big Data & Analytics

From onPrem to (micro-service) Cloud platform & software offerings

From human high-touch to automated intelligent operations

From direct high-touch to digital / low-touch (omni/cross-) channels providing a unique customer experience

Inthemidstofthischange,complexityhasbecomeamajorproblemthatstandsinthewayofdigitaltransformation and innovation. Becoming a digital businessmeansfirstcuttingthroughthiscomplexity.Simplicity is a prerequisite for innovation, and this resulting technology will be a core part of the overall business strategy.

MajortrendsareimpactingSAP’svaluechain end-to-end.Totapintotheopportunityofdigitization,this means a transformation from on-premise to cloudplatformofferings,fromhumantoautomatedoperations, and from direct high-touch to digital low-touch channels.

Constant innovation is the key to growth. Customers’needschangeconstantly.It’seasytobecome irrelevant unless a company has a bias toward innovation, versus a bias toward the status quo. ” Bill McDermott, SAP CEO

Digital Trends and their impact on SAPAcrossallindustries,companiesareexperiencingunprecedentedchangethatistransforming business models, processes and even the way we work. Technology trends such as hyper connectivity, cloud computing, and big data go hand-in-hand with social and business trends that are changing how we live and work.



R&D Marketing

Service & Support F&A HR

Sales

Analytics Across the entire value chain allowing real time decision making. FromDatatoInsighttoAction.

Master Data Standardization A holistic, company-wide master dataconceptacrossorganizationalboundaries.

BOOST INNOVATION AND TIME-TO-MARKET

• Shortandeffectiveinnovationcycles through real-time customer and market insight

• Continuous delivery of integrated micro-services on aneasy-to-extendplatform

SUPPORT WITHOUT INCIDENTS

• Proactive care through real-time 360 customer insight and issue prediction

• Always-on customer support through in app chat bots and artificialintelligence

Digital transformation impacts every Line of Business along the entire value chain

GROW QUALITY PIPELINE

• Instantinsightsinto campaigneffectiveness

• Automated intelligent nurturing• Automated routing through contextualreasoning

PREDICT AND STEER IN REAL-TIME

• Real-time view on cross-board steering indicators with drill-down and simulation / prediction capabilities

• Fully automated down-stream execution

INCREASE CUSTOMER- FACING TIME

• Automated sales content creation basedonprofiling/need-basedsegmentation

• Automated intelligent up-sell / cross-sell recommendations with win rate prediction

• Real-time 360º customer insights

WIN THE WAR FOR TALENT

• Automated intelligent talent sourcing through semantic reasoningofskillprofilesandsocial network crawling



R&D Marketing Sales Delivery Service & Support F & A HR

Cloud Renewals: Strengthen Customer Retention 2

Simplify Selling 1

Simplify Cloud

S/4HANA: Renew Our Digital Core 5

Simplify Sales Commisions 4

6 Revenue Accounting

Improve External Workforce Management 8

Standardize Services Project Management 7

Simplify Travel and Expense Management 9

HR Goes Cloud 10

3

The Run Simple InitiativeIn2016SAPhasembarkedonamajortransformationinitiativecalledRun Simple. It’sajourneytoreducecomplexityinourinternalprocessesandsystems.

WehavesetinplaceTopFocusProjects,addressingourcustomers’andemployees’painpointsthroughfundamentalprocesssimplification,enabledbybest-in-classtechnology:

WithRun Simple we make a promise. A promise to our customers to become more agile and to deliver softwarethat’seasytouse.Wehavetorethinkourownbusinessmodeltobefuture-ready.Wemustadoptgroundbreaking ideas and technologies more quickly. And we have to put our customers’ needs in the center ofallouractivities.Inotherwords:Wehavetomakebusiness simple!

Run Simple is our operating principle and the logical response to customer, shareholder, and market expectations.Run Simple is how we reinvent our operating model, redesigning processes along customer journeysandevolvingtheenterprisearchitecture,allwhile being a lighthouse for our customers.

The goal: Be the MOST Innovative Cloud Company, Powered by SAP HANA.

WhatIlikebestaboutallourRun Simple initiatives and our 10 FocusProjectsisthegoalitself—toachieveasimplerSAP.Weuseour own standard software the way it was built, with little to no customization,andweusethe samesoftwarethatwesell.Weourselves become the best SAP reference customer.” Christian Klein, SAP COO



Transformation ApproachHigh customer and people centricity is at the core of our Run Simplephilosophy.Weputpeople’sneedsatthecenterofouractivitiesandthenworktowardsfulfillingthembyredesigningprocesses,standardizingmasterdata,modifyingtheITlandscape,andleveraging analytical insights.

Whilewesometimesseemtofocustoomuchonorganizationalchanges,oronspendingmeasurestoimproveourprofitability,ourfuturesuccesswillonlybedeterminedbythecustomer centricity of all we do, what we sell, and how we run.” Christian Klein, SAP COO

Business Process Redesign

Across all Lines of Business.

Analytics Across the entire value chain allowing real-time decision making. From DatatoInsighttoAction.

Leverage Digital Innovations

Powered by SAP S/4HANA.

Run Simple = High customer and

people centricity

Master Data Standardization

A holistic, company-wide master data concept acrossorganizational

boundaries.



Thedegreeofsimplificationrequiredtomeetourcustomer’sneedscanonlybeachievedthrough disruptive process redesign. Think process simplification first and, based on this, modify the systems and technology base.

BUSINESS PROCESS DIAGNOSIS

Understand as-is process and perform gap analysis with respect toexpectations.

Process Steps:• Process workshops with operations expertsacrossallLinesofBusiness

• End-user feedback sessions via calls and workshops

• Prioritizethechallengesalongtheend-to-end process

• Identifykeygamechangers(longterm) and quick wins (short term)

• Defineavisionandroadmappergame changer

BUSINESS PROCESS REDESIGN

Depending on the result of the previous phases, chose the right mixofmethods.

Process Steps:• Customercentricity:End-to-end

user panels to validate processes• Establish a new end-to-end mindsetandoptimizedoperatingmodel across the value chain of the company

• Refocusonend-userexperiencealongthecustomerjourney

• Developprocess&ITroadmap• Createuserstories(Business&IT)

BUSINESS PROCESS IMPLEMENTATION & DEPLOYMENT

• Implementthequickwinsincontinuous improvement initiatives

• ExecuteITroadmapinagileapproach

• Drive deployment & end user adoption of the new solution by using it in a rapid way

Transformation Principles

THINK CUSTOMER OBSESSION NOT INSIDE-OUT

Assess degree of value creation for our customers and end-users to continuously challenge the status quo

THINK END-TO-END NOT FUNCTIONAL

Thebiggestsimplificationpotential is in-between silos, not in local optimization

THINK PROCESS REDESIGN FOR RESULTS, NOT PROCESS SAKE

Process redesign has to focusonmaximizingvaluegeneration and elimination ofproxies

THINK DIGITAL, NOT TRADITIONAL

Rethink traditional processes in the light of digital technologies



Enabling TechnologySAP’s system landscape has been grown over decades with a strong OnPrem core. Over the last couple of years, we have moved capabilities into the cloud, leveraging acquired assets. That has led to fasterinnovationcyclesandmoreprocessstandardizationandsimplificationincommodityareas.Inparallel,wehavestartedtoleveragetheSAPCloudPlatformtorapidlyimprovetheuserexperience,toembedcontinuousinnovations(e.g.MachineLearning)intoexistinghybridlandscapesandtoleverageitforuser-centricdifferentiatingsalesapps.

Inordertosupportemergingbusinessmodelsthattransform SAP into a cloud company (growth) but at the same time contribute to a massive increase in operationalefficiencies(costsavings),wedecidednottojustconvertourERPsystemtoS/4HANA,buttoinsteadstartwithagreenfieldapproach.Ledbybusinessprocess redesign triangulated with S/4HANA application capabilities, we designed the new digital core for SAP.

The OnPrem core becomes small and further capabilities move to the cloud, such as salesforce automation, configure-price-quoteandcommissionsmanagement.Inordertostandardizeandsimplify,weworkcloselywithSAPProductandInnovationDevelopmentteamsonfunctionalandintegrationgaps.Weestablishedaco-innovationmodelwhereITisdrivingrequirementsinto

development to create a reference architecture valid for allcustomersofsimilarsizeandindustry.IntegrationtoCloud “satellites” (Ariba, Concur, FG, SFSF) has already significantlyimproved,andfunctionalenhancementsinFinance(Accrualcockpit,IntercompanyBilling,RoyaltiesManagement ) are being co-developed.

At SAP, the end goal is to arrive at a service-oriented architecture with a lean OnPrem Core and connected cloudservicesthatcanbeflexiblyexchanged.Thiswillprovide agility to support new business or commercial modelsandestablishacorethatisrobustandflexibleenoughtocarrySAPintothenextdecadeandsupportfuture growth. Plus, we leverage emerging technologies likeMachineLearningwithinITspecificsolutionstocreateadditionalbusinessbenefits.

SAP Hybris Commerce

Manage Demand Manage Deal Execution Order-to-Cash Customer Life Cycle

SAP Hybris Revenue Cloud

Lead Mgmt CPQ

Order Mgmt Oppty Mgmt

SAP HybrisSAP HybrisSales

SAP HybrisBilling

DigitalCore

Campaign Mgmt

Convergent Invoicing

Customer Service

Response Mgmt

Universal Ledger

Marketing

DigitalTouchpoints

Store

SAP Cloud Platform

FI-CA

SAP Analytics Cloud

Master Data Governance

S/4HANA

S/4HANA



Learn how Marketing at SAP boosts pipeline growth powered by SAP Hybris

Learn how SAP uses Data Management as the basis for digital transformation

Learn how Finance at SAP drives business performance in the digital world powered by S/4HANA

LearnhowSAPsimplifiesExternal Workforce Management powered by SAP Fieldglass

LearnhowSAPsimplifiesTravel and Expense Management powered by SAP Concur

Learn how Sales at SAP sells more in less time powered by SAP Hybris Marketing and Sales

Learn how Procurement atSAPsimplifies processes powered by SAP Ariba Solutions

Learn how HR at SAP drives employee engagement tothenextlevelpoweredby SAP SuccessFactors

Learn how SAP streamlines Enterprise Analytics to achievesteeringexcellence in the digital age

21

64

8 9

3

7

5

Digital transformation impacts the entire organizationManagers and employees on every level and in all our business units are facing individual challenges.Transformationcanonlybeachievedifeveryoneintheorganizationisawareofhisor her part in the game—from the board members to each individual employee.



Learn how SAP uses Data Management as the basis for digital transformationDataisthefoundationofyourbusiness.Withoutit,you’llhavetroublecreatinganythingof value. To stay competitive and successfully support pipeline growth, you need a well maintained master data foundation.

Master Data

1

Marketing

2

FinanceSales Procurement External Workforce

Travel and Expense

HR Analytics

43 6 8 975

*ScienceDaily

Todaymorethanever,dataisgrowingexponentially.90%oftheworld’sdatahasbeengeneratedinjust last 2 years*.Thepainthatorganizationsareexperiencingaroundconsistentreporting,regulatorycompliance, and the move towards Software as a Service (SaaS)offeringsisputtingenormouspressureonEnterprise Data Management.

Data is a valuable corporate asset which, when managed properly,canincreaseefficiencyacrossallLinesofBusiness and support a company’s ability to achieve strategicgoalsandfinancialresults.



SAP’s transformation to the Cloud creates new challenges for EnterpriseDataManagement.InordertoRun Simpleweneedto:

Standardizeandsimplifydata processes

Deliver innovative business and technical solutions

Accelerate business processes through high quality master data

Improveoperatingmargins and internal efficiencies

HR

Inconsistentemployeeinformationand data quality across organizationandprocesses.

SALES

AE’s are spending a lot of time on sourcing, administration, and qualificationoftheircustomerandopportunity management.

MARKETING

Fragmentedandde-centralizeddata prevents marketing operations from generating high-value business and reacting to an agile, fast-paced market.

DIGITAL OFFICER

Accuratebudgetsizing, drivingefficiencymeasures, and improving risk management is undermined by inconsistent anddecentralizeddata.

IT

High cost of ownership and complexIToperationsarechallenging a seamless and standardizeddeliveryof cloud-based solutions.

FINANCE

Nocentralizedhubto manage master data and data quality checks.

Enterprise Data Management’s ChallengesManyareasacrossthecompanydependonaccurateandconsistentMasterData:



Enterprise Data Management’s Transformation ApproachTransformingMasterDataManagementisacombinedeffort.Toachievesustainablechange,we need to equally transform our internal processes, the mindsets of our people, and our technology landscape.

How can we provide correct, clean, current data that is easy to access, use, add and update for fast, accurate results every time?

BUSINESS PROCESS

Weareleveragingabusiness-ledglobal master data management and governance program to reducecomplexity.

TECHNOLOGY

Weareusingbest-in-classSAPsolutions for enterprise information management, like SAP Master Data Governance, SAP Data Services, SAPInformationStewardand SAP CRM powered by SAP HANA.

Business Rules Two-man Rule

Quality Checks

Automate & Standardize

Governance Framework

ContactsCustomer Data Finance Vendor

Suppliers Partners Employees Products Materials Pricing

PEOPLE

Weareholdingadatacouncilwithrepresentatives from each line of business to bring change to everyone’s personal agenda.



How do we organize Master Data Management at SAP?

HR• Reducethecomplexitiesofmanagingemployeejobchanges(orgunits,jobtitles)

• Ensure accurate and timely employee information across the organizationandprocesses

SALES• Allow salesforce to spend more

time with customers instead of admin tasks

• Flexibleaccountplanningand Go-To-Market model

• One view of the customer regardless of the channel (online, on-premise)

MARKETING • Enable high-volume business, maximizegenerationof high-value leads

• Automate,standardize,andsimplify marketing operations to increaseagilityandefficiency

DIGITAL OFFICER• Whichinformationcanaddbusinessvalue,driveefficiency, or improve risk management?

• How much budget and commitment from the business doIneedtomakemycompanysuccessful?

IT• Reduce total cost of ownership andsimplifyIToperations

• Agile-based delivery of Cloud-based solutions

• Infrastructureandarchitecture tosupportBigData&IoT

FINANCE• Optimizethedataqualitychecks

with data governance products and tools

• Use one central hub to manage master data using SAP’s Master Data Governance product



Business Benefits realized

Enabling Technology

Business Benefits realized

€75 MILLION

Benefitsthroughmasterdata improvements

€960K

AnnualreductioninITtotalcost of ownership

CURRENT

Wecankeepaddingmore1:1replications,BUTeachsystemisaddingcomplexity,risk,andcost.

10%

Increaseinmarketingproductivity through continuous data quality year over year

25,000

Hours of increased productivity for account executivesin2015

>97.5%

of 9 million contacts meet standards for overall contact completeness

RECOMMENDED

BuildascalableandflexibleplatformbasedonSAPHANA that supports Governed Master Data and cross system Analytics.

€13 MILLION

Saved with better contact data

70%

Automated data operation processes



Marketing

2

Master Data

1

FinanceSales Procurement External Workforce

Travel and Expense

HR Analytics

43 6 8 975

MARKETING NEEDS TO REACT TO A FAST-CHANGING MARKET:

Learn how Marketing at SAP boosts pipeline growth powered by SAP HybrisWeaskedourselves:ArewerunningLiveinMarketing?WhatarewedoingtotransformMarketing? How can we streamline and simplify our processes along our end-to-end-value chain, from campaign planning to lead handover?

Data silos are holding companies back

Real-time analytics is required to understand how customers are engaging with us. Therefore customer data needs to be aggregated across the enterprise.

The customer is in the driver’s seat

Customerjourneystodayare multi-dimensional andcomplex.Customersdetermine their own, uniqueexperienceanddemand to be engaged through the channels of their choosing.

Simplification for the cloud

Moving to the cloud drives companies to reinvent how they run. This results in a transformation of the ITlandscape,adisruptiveprocess redesign, and investment in your people.

Volume business requires automation

Automated nurturing andleadqualification,as well as a close collaboration between marketing and sales enable pipeline growth.



MARKETING'S VALUE CHAIN:

Campaign Execution

Campaign Planning

Response Handling NurtureScoring &

Routing Lead Handover

to Sales

Campaign ExecutionHigh average campaign preparation time

Campaign PlanningLow integration between Marketing and Sales activities

Response HandlingNo full view into a customer’s history & engagement activities

NurtureLacking analytical capabilities to optimizemarketingefforts

Scoring & Routing<1.5 days for leads to be routed for nextfollow-upstep

Lead Handover to SalesLow integration between Marketing & Sales activities

MARKETER

Campaign ExecutionHigh cost event driven marketing vs.Digitalfirst

Campaign PlanningLimited transparency on brand value

Response HandlingDelayed and manual tracking of demandgenerationeffectiveness

NurtureLack of nurture capabilities means higher spend on tele activities

Scoring & RoutingVery limited automated scoring capabilities

Lead Handover to SalesEnsure quality demand generation withhighefficiency

CMO

Marketing’s ChallengesInordertomakelifeeasierforourpeople,weaskedthemtogivefeedbackontheirpersonalpainpoints throughout the end-to-end marketing process. Based on the feedback we received, we identifiedvariousprocessesinneedofimprovementorredesign.



Historical non-digital ready andoptimizedmasterdatamanagement

Complexityofexternalandinternaldata sources

CIO

High number of independent data sourcesincl.externalsources

Suboptimal, not intuitive end-user experience

Third party systems used at high cost

GLOBAL CHALLENGES ACROSS THE VALUE CHAIN:

Lacking support of new business models

Manual and highly complexprocesses

Low integration between Marketing and Sales

Lacking analytical capabilities and data quality issues

New structures, skillsets, working models required



Marketing’s Transformation ApproachBasedonthepainpointsweidentified,wedefinedacleartransformationvisionandroadmap, including both short-term quick wins as well as long-term game changers.

TODAY

• High-touch event-driven focus

• Complexoperationswithhighly manual processes and various solutions

• Complexsetupwith third party solutions

• High degree of custom development

Business

Technology

TRANSITION

• Streamlines processes on a single platform

• Centralizeddatamodelenabling B2C scenarios

• Reducedcomplexity/Streamlining of processes and enterprise architecture

• Marketing Automation enabled by one central and integrated platform

• Reduced custom development

TOMORROW

• Live Marketing supported by multichannel digital-driven low-touch volume marketing

• SimplifiedMarketingandSales pipeline processes deliveringefficiencyandgovernance

• Live Marketing fully cloud-enabled



MARKETING'S VALUE CHAIN:

Campaign Execution

Campaign Planning

Response Handling NurtureScoring &

Routing Lead Handover

to Sales

Campaign ExecutionGlobal standards on client data

Campaign Planning50% reduction of campaign preparation time

Response Handling360° view of all customer interactions

Nurture10 mins from inquiry to initial response activity

Scoring & RoutingHours vs Days for leads to be routed and followed-up

Lead Handover to SalesSimplifiedEngagementforimprovedleadqualification

MARKETER

Campaign ExecutionDigital First methodology enabled by strategic segmentation

Campaign PlanningTransparency on brand value

Response HandlingReal-time, automated tracking of demandgenerationeffectiveness

NurtureFull-fledgednurturecapabilitiesavailable and 92% less response processing time

Scoring & RoutingAdditional scenarios (i.e. always on)

Lead Handover to Sales40% more leads and improved acceptance / pipeline contribution

CMO

Marketing’s Business BenefitsUltimately our goal is to enable our people to focus on and even scale their daily business activities while increasing their satisfaction.



SAP teams trained on automation concepts

Externalandinternaldata sources more integrated (e.g. social channels)

CIO

12+ databases retired or integrated

ImprovedEndUserExperiencewithSAP Fiori

IncreasedusageofSAPSolutionsleads to Cost Reduction

InnovativeTechnologiesintegratedand co-innovation activities

GLOBAL BENEFITS ACROSS THE VALUE CHAIN:

Marketing automation increasesefficiencyat lower cost

One central platform to support end-to-end processes, providing a 360° view of all customer interactions in real-time

Successful preparation towards Cloud Readiness

Close collaboration between Marketing & Sales with pipeline contribution increase

New structures, skillsets, and working models established

Enabling Technology

Score Nurture Handover Marketing to Sales

Opportunity Management

Order Management

Marketing Campaign Planning

Campaign Execution

Response Handling

Quote Management

REPORTING | MANAGEMENT DASHBOARD | OPERATIONAL INTELLIGENCE

As-Is SAP CRM / SAP Hybris Marketing / non-SAP Solutions SAP CRM /SAP C4C / Harmony non-SAP Sol.

SAP ERP / SAP CRM non-SAP Sol.

ECC 6.0/ SAP S/4HANA

To-Be SAP Hybris Marketing Cloud SAP Hybris Cloud for Customer Revenue Cloud SAP S/4HANA

HIGH- LEVEL

PROCESS

MARKETING SALES



Learn how Sales at SAP sells more in less time powered by SAP Hybris Marketing and Sales

Sales

3

Marketing

2

Master Data

1

Finance Procurement External Workforce

Travel and Expense

HR Analytics

4 6 8 975

AsCloudrevenuewillexceedOn-Premisebusinesssoon, weneedtoactnow!Currently,ourprocessandITlandscape is solely aligned to On-Premise products and sales. However, as On-Premise increasingly becomes a thing of the past and as we move towards digital solutions at high speed, we need to fundamentally modify our transactional processes and systems end-to-end.

To keep pace with market trends and our newly arranged sales pipeline, we need to be quick and courageous as we set up lean processes with quick approvals and morespecificcustomerinformationgathering.Weallknow, Cloud is our future! And Cloud can’t run on old transactions. That’s why we need to simplify both our internal transactional set-up and the way we sell Cloud.

Newbusinessmodels,markets,andsaleschannelsaredrivingSAP’sshareholdervalue:

Cloud subscription

Total revenue

Operating Profit

2016

€ 2.99 bn +184%

€ 22.07 bn +31%

€ 6.63 bn

2020

€ 8.50 bn

€ 29.00 bn

€ 8.50 bn

New markets

New sales channels

Digital trends



Customer expectation

Value assurance and adoption is a leading paradigm. Customer success needs to be ensured to keep loyalty and renewals.

Price = customer value

Pricing model needs to scale directly with the customer value generated. Morestandardizationisrequired to enable scale in the Cloud (no tailored contracts).

Change in Sales incentivation and compensation

Customer loyalty and renewals as well as new and upsell bookings are equally important and should be rewarded accordingly.

Omni-channel digital experience

Buying behavior changes. Upstream digital touchpoints (e.g. web site, demos, trials, stores) and high-touch physical touchpoints (e.g. sales rep) are equally important.

New business models

New consumption-based business models need tobeoperationalizedfor go-to-market (e.g. pay-per-use, pay-as-you-go). Acceleration of innovation adoption drives competition. A smarter bundling of products and services is emerging.

Cost are immediate, margins are tight

WithincreasingshareofCloud revenue, volume in lowerdealsizesegmentsgrowssignificantly.Recurring revenue in the Cloud is based on a differentcoststructure.Process costs have high impact on margin, hence automation is essential.

Mindset change of Sales

Regular recurring deals are preferred over fewer sporadic large transactions. A tight integration from Marketing to Sales and Finance is needed to drivesimplificationandstandardizationacross all deal actions.

Guided Selling

Leverage Machine Learning Capabilities to guide Sales Reps through the deal executionwithProductRecommendations

Sales’ Transformation ApproachHow can we reimagine our future while accelerating business today?

KeyaspectsofSales’digitaltransformation:

PUT PEOPLE & CUSTOMER EXPERIENCE AT THE CENTER


stepwise along end-to-end sales process

INSIGHT & MASTER DATA STANDARDIZATION

across countries and Lines of Business



Sales’ process challenges and desired improvements How do we become faster and more agile, while enabling new business models and scale across geographiesandbusinesses?Howcanwemakeexecutionsimplerforoursalesteams?

SALES’ VALUE CHAIN:

LeadCampaign Opportunity OrderContract Invoice Accounting

TODA

Y

Campaign / Lead• No insight in

campaigns• Highmanualefforts

to run campaigns• Lead routing and

nurturing toocomplex

Quote• No low-touch

process for volume business

• Complexdealmotions and quoting process

• NoAmazon-likeguided selling

Order• Too many invoices

for one contract• No holistic view on

customer due to multiple orders

• Exponentiallyincreasing order and invoice volume

Renewal• No standard

process for renewals >1BN€

• No active risk mitigation

• Highly manual XLS-based process

Contract• Long approval

chains, limited auto approvals

• 50% redlining in Cloud contracts

• Manual contract creation

TOM

ORR

OW

Campaign / Lead• Expandedmarketing

automation capabilities incl. nurturing, scoring, and routing

• Unifiedleadmanagement bridging Marketing and Sales

• Digital-ready data model

Grow Pipeline

Quote• Shortened sales cycles byprefilled,personadriven user interface

• Product and service configuration,guidedsellingandsimplifiedpricing

• Unifiedquotingprocess,tighter integration to order management

• 360° view of customer

Sell more in less time

Renewal• Automated provisioning• Renewal@risk process

for higher customer retention

• Automated renewal report to take action

High Customer Retention

Contract / Order• Reduced approval chains

through deal health based approval process

• Consistent pricing and discounting

• Online composition of modularizedlegalcontent

• Consolidated orders and invoices through solution contract

• Automated order management

Automated F&A processes generate faster cash



Benefits of a transformed Sales organization

5 WEEKS

Reduction in time to market

+38%

of Revenue coming from New Business Models (CloudMixin2016)

+68%

IncreaseinSalesQuota-CarrierProductivity (2012 to 2016)

+77%

oftheDealExecutionrunningonMobile device

>90% OF QUOTA CARRIERS

usingHarmonyInsightsinonemonth (Fastest adoption of a Sales System at SAP ever)

4X FASTER

toexecutecommondealmotionactivities (e.g. create a quote)

+28,000

users consuming analytics and insights on SAP HANA (2016)

+1.6M VIEWS/HITS

of Enterprise Analytics assets (reports & dashboards)

3X

moresitetrafficandinsights served per year


PUT PEOPLE AND CUSTOMER EXPERIENCE AT THE CENTER

INSIGHT AND MASTER DATA STANDARDIZATION



Outlook on Sales’ Transformation into the SAP CloudSeamlessly integrated enterprise Sales platform, connecting Marketing, Sales, andtheBackoffice.End-to-EndprocessintegrationandautomationfromCampaigntoCash,enabling low-/ no-touch sales motions including digital commerce.

SAP Hybris Commerce for SAP’s Digital Store

S/4HANA as Digital Core

SAP Cloud Platform

S/4HANA

SAP Fiori to ensure E2E user experience

SAP Hybris Marketing Cloud

SAP Hybris Sales Cloud

SAP Hybris Revenue Cloud

SAP Hybris Billing

CAMPAIGN LEAD OPPORTUNITY QUOTE CONTRACT ORDER INVOICE ACCOUNTING



Learn how Finance at SAP drives business performance in the digital world powered by S/4HANATobehonest,lifewassimpler15yearsagoatSAP.Wehadaverysimple,uniformbusinessmodel.WesoldtheSAPBusinessSuitewithlicenses,associatedmaintenance,andservices. Wehadaconsistentgo-to-marketstrategy,pricingstructure,andmarketingapproachglobally,whichallowedustode-centralizeourorganizationalstructure.Buttimeshavechanged.

Finance

4

Sales

3

Marketing

2

Master Data

1

Procurement External Workforce

Travel and Expense

HR Analytics

6 8 975

New business models

enable companies to explorenewmarketsandgrow their business.

Distributed Ledgers

enablethedecentralized,secure, direct, digital transfer of values and assets.

Mobile, Internet of Things and Hyper-connectivity

enable immediate access to every “thing”.

Big Data and Machine Learning powered by In-Memory technologies

change how data is being analyzedwithpredictiveanalytics.



Challenges of SAP’s Finance OrganizationSAP’schallengesaretwofold—organizationalandtechnological. One cannot be transformed without the other.

BUSINESS CHALLENGES:

Speed of change

Financeorganizationsmustcopewith the most volatile economic and regulatory environment in decades.Dynamicmarketsoffernew opportunities which need to be pursed quickly before they are gone.

Acquisitions & Mergers

Finance is being asked to drive strategy in a whole new way. After an acquisition, the new entity needs to be integrated into the financeprocessesquicklytorealizeits full potential.

Cost Pressure

Handling tight budgets while being able to support the business, the financeorganizationswanttomove to continuously automated “lights out” processes, event driven and networked with compliance embedded into the processes.

Inflexible Finance & Increasing complex processes

Executivesanddecisionmakersneed to understand the impact of their decisions before they make them with live analysis, predictions, and simulations.

Financial Operations

“Keeping the lights on” with regards toCompliance,Efficiency,BusinessPerformance leads to higher lead qualificationandoptimizedhand-overtosales.Finance’sexisting,disconnected, and often manual processes are no longer acceptable.

TECHNOLOGY CHALLENGES:

Digital Transformation

Bringing in new technologies like Machine Learning, Distributed Ledger Technology, etc

High manual reporting efforts20+ year old rigid core ERP system

Systemwithmanymodificationsand custom reports and enhancements



Finance’s Transformation ApproachAspartoftheTop10FocusProject“S/4HANA: Renew our Financial Core Project,” the Finance initiative will support by designing a new Lead-to-Cash process and system architecture, providing a real-time environment along the steering dimensions andcoreprocesses,andtransformingallcoreprocessestoonestandardizedandunifieddataarchitectureforcustomer,material,andorganization.

TODAY

• High touch event-driven focus

• Complexoperationswithhighly manual processes and various process variants

• Bad data Quality and manual reporting

• Complexsetup• High degree of custom

development• Non-SAP systems used by

acquired companies

Business

Technology

TRANSITION

• Business process redesign• New master data concept

with less G/L accounts, cost centers,profitcenters

• New steering model definition

• SetupofagreenfieldS/4HANA system

• IntegratewithCentralFinance to the legacy ERP system

TOMORROW

• Move all legal entities to the new S/4HANA system

• Enable low touch business modelswithextremelyhighF&A automation level

• Shutdown of legacy ERP instance

SUPPORT NEW HIGH-VOLUME BUSINESS

Enable transaction-based billing andautomatedcollections.Flexiblysupport new and changing future business models.

COMPLIANCE

Ensure volume-readiness and increased automation and standardizationofRevenueAccounting processes in the light of new Accounting Standards

INTEGRATE ACQUISITIONS

Allowing one single source of truth by combining legacy ERPs with S/4HANA via Central Finance

NEW STEERING MODEL

Harmonizedsteeringmodel togaintransparencyandefficiencyacross Line of Businesses and product lines to manage growth andprofitability

SIMPLIFY

Setup of a new Chart of Accounts with less accounts, massively reducednumberofcostandprofitcenters.Nomodificationstothestandard system.



Business BenefitsWithourrecenttechnologyshiftwearenowadoptingastandardizedandautomatedS/4HANACoresystem.WithBusinessProcessRedesignwequestionedallourexistingprocesses.Whilealways having our focus on our end users and our customers, and the business challenges they arefacing,wedefinedoursystemlandscapeaccordingly.

CFO

Agile adaption of order to cash process to support new business models

Real-time business steering with the Digital Boardroom based on S/4HANA. More accurate prediction of business development

End-to-end process coverage with integrated business systems reduce process costs and increase visibility of process performance.

Proactive process & data monitoring to ensure highest compliance standards

CORPORATE FINANCIAL REPORTING

Standardizedmonth/quarterendclosing processes, automated tasks and increased quality with the Financial Closing Cockpit

Data consistency across Finance and HR by integrating S/4HANA andSucccesFactors.Simplifiedand automated bonus and vacation accrual management

Significantlysimplifiedclosingprocess with Central Finance consolidating various ERP solutions

AdoptionofnewIFRS15accountingstandardswithlessbookingeffortand less manual checks

Automatedaccrualandfixedassetaccounting process reduces manual effortwithinmonth/quarterendclosing

COMMERCIAL DEAL SUPPORT

Low Touch Order-to-Cash process including:

• automated order management, • proactive deal health monitoring, • automated contract handling and • standardizedbillingforalldeal

motions

Real-time view on order processing volume and critical deals



SHARED SERVICE CENTER

FINANCIAL PLANNING AND ANALYSIS/ CONTROLLING

TREASURY

Planning, Reporting, Simulations, and Predictive Analytics in ONE system with real-time data, great visualization,andusability

Valuedriverbasedfinancialsteeringconcept

Direct access to the Universal Journal with real time information allow simple and reliable reporting

The Universal Journal supports thedefinitionofattributesneededfor our new steering dimensions, aswellasthereductionofProfitCenters from 130k to <5k.

Lessmanualreportingeffortallowsmore time for business partnering based on profound business analysis

Universal Journal helps to reduce 70%ofreconciliationeffortsbetweenFIandCO

Machine Learning capabilities automate accounts receivables process matching open invoices to received customer payments

Faster processing time of ticket handling as enterprise search enablessmartresolutionfinding

Improveoperatingcashflowdue to real-time cash & liquidity management

State-of-the-art liquidity planning and forecasting, automated compliance, and a single version of truth

Real-time overview and responses to cash requirements, detailed guidance and planning for cash operations, and dynamic liquidity forecasting

Simplify and automate cash account analysis and liquidity management to reduce banking fees and borrowing costs

Drill down into global bank balances, cash positions, and individual transactions to gain more detailed insights



Enabling TechnologySAPS/4HANAaskeyenablerforSAPtobecomeaDigitalEnterprise:

+10PP improvement in forecast accuracy

GLOBAL BENEFITS ACROSS ALL ROLES:

50% more time available for high quality deal support

70% reduction of reconciliationefforts

95% reductionofprofitcenters in new steering model

97% electronic bank statements automatically posted

5 DAYS reduction of quarter-end close process including group consolidation

50% efficiencygain with Fiori

50% more work time available for performance management and business partnering

Customer Experience

Workforce Engagement

IoT & Supply Chain

SpendManagement

Process Redesign

Legacy ERP

Legacy ERP

Non-SAP ERP

Legacy ERP with massive complexity The Journey to the New Digital Core The Digital SAP is Cloud Enabled

Starting Point Transition Tomorrow

Process Redesign

AribaFieldglass

SuccessFactorsConcur

SAP CloudPlatform

AribaFieldglass


SAP CloudPlatform

Industry

Security

SAP Cloud PlatformSAP HANA

Blockchain

MachineLearning API’s

AribaFieldglass


SAP CloudPlatform

IoT & Supply Chain

Customer Experience

Workforce Engagement

SpendManagement

Industry

Security

SAP Cloud PlatformSAP HANA

Blockchain

MachineLearning API’s

SAP

SAP

Aqui

sitio

ns

SAP



Learn how Procurement at SAP simplifies processes powered by SAP Ariba SolutionsInafastgrowingcloudeconomy,weneedtosecureprofitabilityby transforming our tactical procurement function towards a holistic strategic function. Thistransformationcomesinfourdimensions:

Procurement

5

Finance

4

Sales

3

Marketing

2

Master Data

1

External Workforce

Travel and Expense

HR Analytics

6 8 97

Aribaneedstobefullyintegratedintotheglobalprocurementorganization:

User-friendly Cloud Solutions

Big Data Advanced Analytics

Connected Business Networks

Learning Systems Artificial Intelligence



Challenges of SAP’s Procurement Organization

Monitor and Manage • Lack of transparency across

entire process• “WhereisthestuffIhave

ordered?”

Contract and Procure • Too many steps, clicks, windows,

and interfaces• High training need • Missing mobile solution

Invoice and Pay • Complexprocess• Multiple entry points, systems,

and tools

EMPLOYEE

PROCUREMENT'S VALUE CHAIN:

Contract and ProcureSource and Negotiate Invoice and Pay Monitor and Manage

Invoice and Pay • Manual invoicing steps • High operative workload

Source and Negotiate • Complexdiscovery,pre-qualificationandonboarding

• Limited competition among suppliers

Monitor and Manage • Limited visibility on purchasing

spend & budget adherence • Missing entry point to gather

transparency about spend

Contract and Procure • Unstructured collaboration with

suppliers• Multiple systems, multiple

contracts with suppliers

PURCHASER

Invoice and Pay • High system and integration

costs

Source and Negotiate • High risk due to lacking supplier

information

Monitor and Manage • AdditionalefforttocalculateKPI’s

Contract and Procure • Compliance risks

CIO



Transformation ApproachHow can we help deliver double-digit cost reduction while at the same time improving our reputation as a function that delivers value beyond cost cutting?

Take end-to-end process responsibility

for all parties involved in the entire source-to-pay process

Leverage purchasing power

and drive sustainable savings across all geographies

Deliver best-in-class procurement processes

and highest possible service levels to internal customers

Be a value enabler

to our Businesses and a fair partner to our suppliers

GLOBAL CHALLENGES ACROSS ALL ROLES:

Lacking cloud capabilities

Lacking collaboration with suppliers

Inefficientsource-to-pay process

Lacking monitoring capabilities

Highlycomplexmanual processes

Low customer satisfaction



Benefits of SAP’s Procurement Organization

Contract and Procure • Amazon-likebuyingexperience

with Guided Buying • One-Stop-Shop incl. Spot Buy• Zero-training required

Invoice and Pay • One single point of entry

EMPLOYEE

PROCUREMENT'S VALUE CHAIN:

Contract and ProcureSource and Negotiate Invoice and Pay Monitor and Manage

Invoice and Pay • 60% increase in invoice

automation• Reduced operative workload

Source and Negotiate • Quick and easy supplier discovery,pre-qualification and onboarding

• Efficiencyandcostsavings with online bidding

Monitor and Manage • Dashboards and reports provide

complete visibility into spend and risks

• Accurate real-time budget visibility through deep integration with S/4HANA

Contract and Procure • Advanced collaboration

capabilities with suppliers• Consolidation of contracts

drives cost savings• Incorporatingcontractsinto

purchasing and invoicing drives compliance

PURCHASER

Monitor and Manage • Mobile end-to-end visibility into

the whole purchasing lifecycle• Quickly get the goods &

services they need



Enabling TechnologyS/4HANA centric application landscape seamlessly intergrated enterprise end-to-endpurchasingprocesses:

6-DIGIT € savings through cloud-based delivery

6,300+ suppliers enabled

96% invoice quality

Largest Business Network with 2.5+M partners

50% manual invoices eliminated

GLOBAL BENEFITS ACROSS ALL ROLES:

• Improvecontrolandcompliancewith integrated contract manager

• Integratedsupplierlifecycleandperformance management

• Lower risk with up-to-date supplier information

• Out-tasked infrastructure for suppliercollaborationtooneEDI

• Lower TCO – Fully integrated Cloud solution into S/4HANA

CIO



Learn how SAP simplifies Travel and Expense Management powered by SAP ConcurFrequentbusinesstravelisexhausting.Whatmakesitevenworseisthefactthatonce youreturnhome,thejourneydoesn'tendthere.AtSAPwenoticedthatourpeoplewerehavingahardtimeclaimingtheirtravelexpenses—sowestartedbrainstormingwaystomakelifeeasierforthem. One important step was moving the entire booking to reimbursement process to the cloud.

Advantageofcloudbasedtravelandexpensemanagement:

Travel and Expense

6

Finance

4

Sales

3

Marketing

2

Master Data

1

Procurement External Workforce

HR Analytics

8 975

ConcurTravelandExpenseManagementneedstobefullyintegrated intotheglobalprocurementorganization:

End-user

Direct and mobile access to T&E management with immediate processingandminimumeffort

GPO

StandardizedandcompliantE2Eprocessingoftravelandexpenserequests with low-touch monitoring and reporting

Technology

Applications are seamlessly integrated into the Digital Core andcanbehostedefficiently



Challenges of SAP’s Travel & Expense ManagementTRAVEL & EXPENSE MANAGEMENT’S VALUE CHAIN:

Execute On Trip Activities

Execute Pre Trip Activities

Claim Expenses

Audit and Monitor

Reimburse Expenses

Claim Expenses • NotintuitiveUI,toomanysteps• Nomobileexpenseclaims

”on the go”

Audit and Monitor • Missing transparency

Reimburse Expenses • Informationnotclear• Long cycle time for the

overall process

Execute Pre Trip Activities • Multiple places & systems to

search for information

Execute On Trip Activities • Manual handling of

itinerary changes• Lack of information• Missing mobile solution

EMPLOYEE


Claim Expenses • Missingstandardization• High operative workload

Audit and Monitor • Multiple systems to operate• Complexprocess• ComplianceIssues

Reimburse Expenses • Missing transparency

Execute Pre Trip Activities • Missingstandardizationcausesadditionalefforttosupportmultiple travel scenarios

Execute On Trip Activities • Missingstandardization• Limited reporting on preferred

travel behavior



Transformation ApproachThejourneytodigitaltransformationstartsbyempoweringeveryemployeetomake goodbusinessdecisions.Oneimportantpieceinthispuzzleisprovidingfulltransparencyonexpenses,andtobeabletomanageitproactively—withtheclickofabutton.

Audit and Monitor • Insufficienttransparencyon

T&E costs

Reimburse Expenses • Highly manual error-prone efforts

Execute Pre Trip Activities • Limited reporting on booking behaviorandexpensecorrelation

Claim Expenses • Missing transparency across

complete process• Compliance risks

CFO


No end-to-end travelexperience

Complexbookingexperience

Missing efficiency

Missing mobile capabilities

Complexcustombuild processes

Non-intuitive interfaces

Integrated booking tool

Handle the entire end-to-end T&E process from pre trip bookings to reimbursement with one tool

Mobility included

Claimexpensesonthego with one intuitive, easy to use mobile interface

Cloud solution

Applications are seamlessly integrated into the Digital Core, assuring compliance



Benefits of SAP’s Travel & Expense ManagementTRAVEL & EXPENSE MANAGEMENT’S VALUE CHAIN:

Execute On Trip Activities

Execute Pre Trip Activities

Claim Expenses

Audit and Monitor

Reimburse Expenses

Claim Expenses • Mobile&web-basedUIs• User-friendly and intuitive• Expensedataflowsautomatically

into Concur

Audit and Monitor • Transparency across

complete process

Reimburse Expenses • Transparency on process• Quick reimbursement due to

streamlined processes

Execute Pre Trip Activities • E-receipts & card integration reducemanualefforts

• Full integration of booking tools

Execute On Trip Activities • Electronic receipt capture

via mobile• Itinerarychangesreflected

immediately

EMPLOYEE


Claim Expenses • Reducedeffortsduetosystem-

enforced policy compliance • Single system to operate

Audit and Monitor • Single system to operate• Built-in compliance• Better scale through

sampling checks

Reimburse Expenses • Transparency across

complete process

Execute Pre Trip Activities • Standardizedprocessesto

simplify support to traveler

Execute On Trip Activities • Standardizedprocesses• Enhanced reporting on

travel behavior



Audit and Monitor • Analyzecompanywide

travel behavior• Reportingoncostoptimization

measures• Highest security standards (ISO,SOC/SSAE16,PCI)

Reimburse Expenses • Reduced error handling

complete process

Execute Pre Trip Activities • Enhanced reporting on booking behaviorandexpensecorrelation

Claim Expenses • Transparency on the overall

process to ensure consistency and compliance

CFO


End-to-end travelexperience

Simplifiedtravel booking experienceviamobile

IncreasedefficiencyinT&Emanagement

Create / capture expensesonmobile devices

Globalizedbest practice processes

85% user satisfaction

Enabling TechnologyS/4HANA-centric application landscape seamlessly intergrates enterprise end-to-endpurchasingprocesses:



Learn how SAP simplifies External Workforce Management powered by SAP FieldglassExternalWorkforcemanagementisundergoingasignificanttransformation:

External Workforce

7

Travel and Expense

6

Finance

4

Sales

3

Marketing

2

Master Data

1

Procurement HR Analytics

8 95

ManagingtheExternalWorkforcerequiresacloud-based,easy-to-use,mobilesolutionthatoffersfullend-to-endtransparency.Inordertoachievethat,SAPFieldglassneedstobefullyintegratedintotheglobalprocurementorganization:

Growing government regulationsforexternalworkforce management

Usability & simplicity have become critical success factors

Increasingdemandtomanageexternal workers end-to-end

Increasingdemandforself-service capabilities

Growingsignificanceof mobile devices for business applications



Challenges of SAP’s External Workforce Management

Pay • Little transparency

on compliance and the rules of engagement

Report • DifferentReportsfor

several requests

Search • Various tools • Not intuitive. bad user interface

Order • Cumbersome third party

hiring processes

EMPLOYEE

EXTERNAL WORKFORCE MANAGEMENT’S VALUE CHAIN:

OrderSearch Pay Report

Pay • High number of

incorrect invoices

Search • DifficultE2Esupplier

collaboration

Report • Missing transparency across the

complete process

Order • Long processing time till

actual hiring

PURCHASER

Pay • Compliance risks• Highly manual error-proneefforts

Search • Insufficienttransparencyon

company’s third party hiring

Report • Insufficienttransparencyacross

entire third party costs

Order • Missingstandardization

CFO



Transformation ApproachWeneedtoinvestintechnologiesthatprovidevisibilityintothetotalworkforceinordertodrivemorestrategichiringdecisions,throughaseamlessexperienceonalldevices.


Lacking cloud capabilities

No mobile solution

High time to hire

Lacking monitoring capabilities

Missing standardization

Low employee and supplier satisfaction

HIGH LEVEL PROCESS:


Search for the right candidate with the right skills and the right availability

Improveuserexperiencewith an intuitive and user friendly end-to-end solution

IntegratedAnalyticsandReporting in real-time

Real-time integration of the Digital Core and S4/HANA

Order the candidate and getthefinancialapprovalsfor the order

Manage corporate ExternalWorkforcein anefficientway

Approve worker timesheets and pay the supplier

Manage and approve items using mobile devices

OBJECTIVES:



Benefits of SAP’s External Workforce Management

Pay • Full transparency on compliance

& rules of engagement

Report • Full transparency on end-to-end

process

Search • Find the right people for the right jobs,basedonscorecardsandevaluations

Order • Reduce cycle time due to

automation & mobile approvals

EMPLOYEE

EXTERNAL WORKFORCE MANAGEMENT’S VALUE CHAIN:


Pay • Cost savings due to rate

adherence and consolidation of contracts

Search • Measure vendor responsiveness• Intuitivevendorqualificationand

rate comparisons

Report • Identifyinternalbottlenecks• Real-time understanding of

engagement status

Order • SLA adherence• Compliance to corporate policies

PURCHASER

Pay • Compliance with corporate

policies • Get rid of paper-based invoices, increaseefficiency

Search • Improvecollaboration

with Suppliers• Shut-downofdecentralized

applications

Report • Insightintobudgeted,actual,

and forecasted spend

Order • Mitigate co-employment risks• Analyzeandenforce

program budgets

CFO




Cloud-based delivery,fastROI/ low TCO

End-to-end Mobile solution

Reduce time to hire by 20%

Transparency throughout the process

Highly automated operational processes

Increasedemployee and supplier satisfaction

Enabling TechnologyS/4HANA-centric application landscape seamlessly integrates enterprise end-to-endworkforceprocesses:



HR

8

External Workforce

7

Travel and Expense

6

Finance

4

Sales

3

Marketing

2

Master Data

1

Procurement Analytics

95

Learn how HR at SAP Drives employee engagement to the next level powered by SAP SuccessFactors Changeisthenewnormal.Allorganizationsareexperiencingit,andmanyCHROsareseeingadramaticshiftinHRfromdeliveringtransactionalexcellencetobecomingarchitectsoftransformation.

Inordertoliveuptotheseexpectations,SAPHRneedsto:

Provide access to HR processes anywhere, anytime, on any device

HRservicestobeofferedtoemployees and managers in a very simple and easy to consume way

Make use of Digital Technology

Continuous HR process and system innovations to drive people engagement & HR processeffectiveness

Be compliant with legal and data protection requirements across the globe

HR has to ensure legal compliance in fast growing international businesses

ThenewworldofworkoperatesdifferentlyandhowworkgetsdoneinHRischanging:

• HRmustdeliver"experiences”toprospectivenewhires and employees that match the best customer experiences.

• HRisexpectedtodrivemeasurablechange,reportingonimpactnotjustactivity.

• HRmustbefluentindataanalyticsandpredictoutcomes tied to the business strategy.

• Solutionsareexpectedtobeintegratedwithfinanceand other business processes.

• Simplificationisthekeytosuccessaswenavigateanever-increasingworldofcomplexityandchange.



HR’s ChallengesHR’S VALUE CHAIN:

Administrate Workforce

Attract & Select Workforce

Reward & Recognize Workforce

Develop & Retain Workforce

Exit Workforce

EMPLOYEE

Reward & Recognize Workforce • Rigid feedback processes

Develop & Retain Workforce • Lackofpersonalizedtraining

activities • Noflexiblecollaborative

environmentExit Workforce • Limited ability to stay in touch

with SAP

Attract & Select Workforce • No social enterprise to discover

and connect

Administrate Workforce • No innovative HR Self Services• Multiplecomplexuserinterfaces

MANAGER

Reward & Recognize Workforce • Lack of analytics to address

needs of gloabl, diverse workforce

Develop & Retain Workforce • NoholisticHRserviceoffering

from recruit to retire

Exit Workforce • No ability for early warning signals

Attract & Select Workforce • No holistic solution to manage internalandexternalworkforce

Administrate Workforce • Complexlocalprocesses/tools• Divergentexpectationsof

millenials vs the ‘old guard’



HR

Reward & Recognize Workforce • Handling of sensitive data for

86.000+ employees

Develop & Retain Workforce • Lack of tools to manage

Talent Development• Leadership Readiness for the

digital ageExit Workforce • Noabilitytopredictfluctuation• Noefficientwaytopushjob

postings to alumni

Attract & Select Workforce • Demanding talent market• Lack of tools to support recruiting

of Talents via all sourcing options

Administrate Workforce • Need to service a large number of

leaders across multiple locations


Fragmented system landscape

Lacking data security and authorizations

Lack of alignment between Finance and Sales

Limited analytical insights on HR data

HRWorkforceManagement Plan not linked to overall SAPfinancialplan



Transformation ApproachWhatwillthedigitaltransformationofHRlooklike?AtSAPweforeseedeeper,broader collaboration between HR and other business areas to improve talent management—forexample,byidentifyingpocketsofexcellenceandplanningforsuccession. HR needs to link and strategically leverage the entire workforce—both employeesandcontractors—topowerspecificbusinessresults.

HR needs to boldly embrace fully integrated, enterprise-level HR solutions that harness digital technologies which unify data, simplify and accelerate HR analytics and core processes, and provide real-time visibility into operations, the workforce, and costs.

Business Process Redesign

Across all Lines of Business.

Analytics

Based on Cloud Make use of SAP

SuccessFactors and integration to other Core

Applications via Cloud Platform

Put People Experience at the Center

Master Data Standardization



HR’s Business BenefitsHR’S VALUE CHAIN:





Exit Workforce

MANAGER

Reward & Recognize Workforce • Reducedreportingeffortsby

3 days per month

Develop & Retain Workforce • 1.3 million learnings were

delivered in 2016

Attract & Select Workforce • 15-20%lesseffortfor

standard tasks

Administrate Workforce • 50% lower costs for accrual and

payroll administration with noadministrativeeffort

EMPLOYEE

Reward & Recognize Workforce • 89% prefer a continuous

dialogue with their managers over annual reviews

Develop & Retain Workforce • 100% of learnings delivered in

2016 can be consumed on mobile

Exit Workforce • Alumnis from more than 80countriesjoinedour Alumni network

Attract & Select Workforce • 92%ofcandidateslikethejobsearchandapplicationexperience

Administrate Workforce • Simple and easy to use

SAP Fiori interface



6,36,5

6,3

7,0 6,9

7,5

2006 2008 2010 2012 2014 2015 2016

7,8

HR

Reward & Recognize Workforce • Shortened compensation

planning cycle from 9 to 3 weeks

Develop & Retain Workforce • Real-time steering based on one

source of truth for all HR and Finance master data

Exit Workforce • 93.7% employee retention

Attract & Select Workforce • 25,000ExternalWorkers

securely managed

Administrate Workforce • 100% Compliance for all HR and

Finance accrual processes


78% business health cultureindex

57% leadership trust reached

85% employee engagementindex

33% reduction in administrative tasks

93.7% employee retention

SAP HR CUSTOMER SATISFACTION SCORE OVER TIME:



Enabling TechnologyTransformationofSAP’son-premiseHRLandscapetoacloud-basedsolutionportfolio:





Exit Workforce

HRCloudPortfolioatSAPHR:

• Recruiting• Onboarding• Contingent WorkforceMgmt(SAP Fieldglass)

• Performance & Goals

• Succession & Development

• Learning

• OrganizationalManagement

• People and Transactions

• Absence Management

• HR Shared Services

• Predictive Analytics• Payroll Processing• Compensation• Benefits

• Resumee/ Job Matcher (in Beta Test)

• Learning Recommendations (in Beta Test)

• Social Partner Approvals

• Semos Survey Rocks

• Fit@SAP

• Social Partner Approvals

• Enterprise Jungle Alumni

• Semos JpbPts• SAP Stock

Purchasing

SAP Cloud Platform



Analytics

9

HR

8

External Workforce

7

Travel and Expense

6

Finance

4

Sales

3

Marketing

2

Master Data

1

Procurement

5

Learn how SAP streamlines enterprise analytics to achieve steering excellence in the digital ageThe digital age is changing the game when it comes to steering a company. Speed in decision making matters now more than ever.

How can we survive in such disruptive times? The ability toconstantlyreadjustyourpathforwardisessential.Everycompanyhasastrategythatisreflectedinabusinessplan,brokendownintodefinedobjectives.WesetgoalsandKPIstomeasuretheirfulfillment.Meanwhile, business processes like Marketing, Sales, and Finance produce tons of data that is being captured inITsystems,readytobeaggregatedandanalyzed.

So nowadays the big problem in many companies is how to bring together data and strategy in a seamless way—withouttheneedfortwenty-fiveExceldocs

and fourty-two systems to bring it all together. Not to mention waiting two weeks to have a report ready for management, so they can then make a decision based on data that's already outdated. That’s a reality many companiesarefacingtoday.WhattheyneedistobeabletoseamlesslychecktheirKPIsagainsttherespectivedata(frombothinternalandexternaldatasources)inorder to evaluate progress compared to the company's overall strategy. And at the same time they need to be abletopredictaforecast,adjustcourse,andrefocus—allin real time.

What is Needed… …vs. Usual Reality

Company StrategyMidLongTermBizPlanShortTermBizPlan

ObjectivesGoalsKPI

Continuous check of plan

vs actual

Forecast and predict

Sem

antic

MeasuresAggregation

Operational Rep. OperationalBizRules

ITSystemsData, Processes

Company StrategyMidLongTermBizPlanShortTermBizPlan

ObjectivesGoalsKPI

MeasuresAggregation

Operational Rep. OperationalBizRules

ITSystemsData, Processes

Sem

antic

Sem

antic



Transformation ApproachAt SAP we are currently facing the challenges of tranforming our business into a cloud company. This means facing holistic, cross-functional questions which cannot be answered with separated systems, separated information, and separatedKPIsfromdifferentlinesofbusiness.

Weidentifiedseveralissuesweneededtoaddressfromboththeprocessandtechnologyside:

Standardize KPI definition and dimensions

Single Source of Truth

Governed, federated system approach = one analytical platform

Cascade the steering logic into to company

from the top to the bottom

Ensure data consistency

S/4HANA at the core

Inmemorytechnologyallowsforon-the-flyreporting

Avoid redundant und duplicative work

by reusing analytical assets and views.

Analytics Cloud

as the analytics platform running on our cloud platform

PRO

CES

STE

CH

NO

LOGY

Acrossthecompanydimensionshavetobeharmonized.OtherwisewecannotensurethatpeoplebothatthetopandacrossthecompanytalkaboutthesamethingwhentheylookatthedifferentKPIsintheorganizationoracrossthedifferentdimensions.



SAP had long employed a variety of small analytics groupswithinthecompany.One,calledInsight-DrivenMarketing, focused on marketing analytics. Other groups existedwithinFinance,HumanResources,andSales.There was relatively little contact and collaboration among these groups. However, this approach often resultedindifficultiesconsolidatingreportsandresultsacross functions and units.

Byfall2014,SAPexecutivesagreedthatamoreenterprisefocusandaunifiedanalyticsorganizationwere necessary. Not only could these consolidation problems be addressed, but the company could also employ more innovative and predictive analytics capabilitieswithacombinedorganization,andrespondto the challenges and opportunities of big data. So the SAPEnterpriseAnalyticsorganizationwascreated.

Bringingthesede-centralizedanalyticalgroupstogetherto work as one, while also informing a singular technical platform as their single source of truth will be bearing fruit shortly. Enterprise Analytics recently launched a cross-business program called “The Digital Boardroom,” which integrates real-time, cross-business metrics for a full business view that SAP will use internally as well as bring to market through their co-innovation approach.



The Digital BoardroomTheDigitalBoardroomisouranswertomanagingdigitaltransformation.Itcreatesfulltransparencyacrossthecompanyinreal-time.IthelpstocreatebusinessimpactfueledwithAnalytics—from the boardroom to every end user.

The Digital Boardroom is the top notch superior SAP analyticssolution,bringingtogetherallthedifferentinformation in aggregate fashion across the company—beitHR,sales,finance,orourportfolioexternaldata.Executivesgetaveryaccurateoverviewonhowallofourmarket units are performing, but at the same time can go down into every level of detail.

Inthepreviousofflineformats(e.g.Powerpointdocuments)itwouldbeanextremelycumbersomeandcomplexdocumentconsistingofhundredsofslides.Wecannowproducearichsetofcapabilities,andhave

online real-time reporting, resulting in a system that executivescanreallyinteractwith.

At the click of a button, board members can see the entirepipelinebrokendownintothedifferentregions,including correpsonding growth assumptions and other forecasts.

Withthispowerfultool,weatSAPdefinehowwewanttosteer the company. And then we can cascade that down into our business units.

Board and Senior Management

Digital Boardroombased on SAP Analytics Cloud

Dashboarding cascaded from the Boardroom

Operational Re-porting

MiddleManagement

Operational Level



HR• Analyzeeffectiveness

of recruiting programs• Analyzeand

reduce attrition

SALES• Access to real-time

customer analytics and sales data

• Insightsintopipelineanywhere, on any device

• Predictive analytics and insight to increase chances of winning

MARKETING • Createeffective

marketing campaigns, using automated nurturing, customer insights and segmentation

• Reduce cost through automation

• Generate more qualifiedleads

FINANCE• Enable steering in

real-time• Run predictive

simulations

Our efforts are already paying off

ExemplaryBusinessUnitBenefits:

Global,cross-functionalachievements:

Real-time insights from senior management down to operational levels

Efficiencyindeliveringanalytical assets

Consistency of steering information throughout the company

Trusted data source



Want to learn more? Our Run Simple initiative relies on quality feedback—so please don't hesitate to reach out to us with your questions and ideas. Also, if you are keen to learn more, we’re happy to provide you with additional information about our programs.

Feel free to contact us at [email protected]

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