Spark_StrategicTalk_SDenecken_FINAL

Sven Denecken @SDenecken
Senior Vice President, SAP S/4HANA, SAP SE
Your journey into the digital age

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2
Average age of a company on the S&P 500
60 years 12 years
Out Innovated
1960 1970 1980 1990 2000 2010 2020
52% of the
Fortune 500
firms since
2000 are
gone

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public
Extreme Variability Rapid InnovationIndividualization
Challenges from the market today

So what does it take to
win in the digital era?

Reimagine
Business
models
Products Business
processes
Work

Reimagining
business models

Reimagining
products

Reimagining
business processes

Create a Digital Business Framework
Suppliers
& networks
Customer
experience
Workforce
engagement
Internet of Things
& big dataSecurity
Cloud Platform
Digital Core

Key value dimensions you should look after
Sales and Distribution
 Reduce Customer Churn
 Reduce Sales Cost
 Reduce Order Management Cost
 Reduce Cost of Processing Returned Goods
Asset Management
 Reduce Un-Planned Downtime Or Outages
 Reduce Asset Service and Maintenance Costs
 Reduce Asset Risk
 Reduce EH&S Penalties & Fines
 Reduce EH&S Management Cost
Manufacturing
 Reduce Total Manufacturing Costs
 Reduce Manufacturing Cycle Time
 Reduce Scrap Value
Supply Chain
 Reduce Revenue Loss Due To Stock-outs
 Reduce Days In Inventory
 Reduce Inventory Carrying Cost
 Reduce Inventory Obsolescence
 Enhance Supply Chain Planning
Productivity
 Reduce Total Logistics Cost
Sourcing and Procurement
 Reduce Procurement Function Costs
 Improve Supplier Compliance (Spend Management)
 Improve User (Spec & Vendor) Compliance
 Increase Sourcing Savings by Enhanced Supplier
Visibility
 Reduce Accounts Payable Error
Finance
 Reduce Days to Close Annual Books
 Reduce Days Sales Outstanding (One - Time Benefit)
 Reduce Finance Cost
 Reduce Losses due to Fraud
 Reduce Audit Cost
Service
 Reduce Revenue Leakage
 Reduce Service Delivery and Support Cost
 Reduce Cost of Non Compliance to Service
Contract
 Reduce Service Parts Inventory Carrying Cost

Service
promise
The end-to-end digitized enterprise
as unavoidable consequence
Unit of one
[#/€]
TimeDigital
economy
Number
of items, lots
Value, size of
items, lots
Why digitize the core?
Unit of one
End2End
Experience is the
New Product

80-90 % ZERO TOUCH
Exception-based handling
<10 % LOW TOUCH
1995 2005 2015 201x
The Digital Core
System Of
Intelligence
block
Machine
Learning
Business Evolution Causes
Demand Of Automation

Reimagine Consumer Engagement
$
Business
models
Business
processes
Work
Create virtual vertical integration
Share, rent, and optimize
Capitalize on insights
Personalized engagement
Virtual demand-and-supply networks
Hyperconnected manufacturing
Contingency-based operations
Transferrable functions
Trusted transparency

Spark_StrategicTalk_SDenecken_FINAL

Direct access to single
source of truth
Simulation capability
(what-if analysis)
Easy to
set up agenda
Redefine real time with a Digital Boardroom – not only Boardroom

Start at http://www.sap.com/s4hana for more information
Try
SAP S/4HANA
Detailed
SAP S/4HANA
road maps
Top questions
and answers
How to get there …
Your path to SAP
S/4HANA

Sven Denecken @SDenecken
Senior Vice President, SAP S/4HANA, SAP SE
Your journey into the digital age
Thank you

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