Digitizing the Extended Supply Chain - Hans Thalbauer

2. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 55Confidential World’s largest taxi company owns no taxi’s Largest accommodation provider owns no real estate Largest phone company owns no infrastructure World’s most valuable retailer owns no inventory World’s largest movie house owns no cinemas Largest music company owns no music Worlds biggest book distributor owns no books The Digital Disruption is Happening

4. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 57Confidential KAESER, From selling products to selling services, pay per use Business Challenge Benefit Competitive advantage through new business models such as pay per use while being operated by the OEM. Guarantee higher uptime and productivity

5. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 58Confidential Benefit Reduced lead time to produce customized motorbikes from 21-day cycle to 6 hours! -7% Reduced Cost +19% Net Margin Harley Davidson, enabling responsive manufacturing with SAP Connected MFG Business Challenge

6. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 59Confidential AIRBUS, digitalization of work Business Challenge Example Humans and two-armed robots work side by side at Airbus Puero Real plant in Cádiz

7. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 60Confidential Design Respond Sharing Economy Business Network End-to-End Visibility Resource Scarcity Sustainability Individualized Products Industry 4.0 Customer Centricity Omni-Channel Digital Transformation in Extended Supply Chain Customers & Markets Suppliers & Logistics Products & Assets People & Resources

8. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 61Confidential Customer Centricity 45% of enterprises are building direct-to-customer fulfillment capabilities Source: SCM World’s 2014 Chief Supply Chain Officer survey Demand Sensing Same-day Delivery Omni-Channels

9. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 62Confidential Individualized Products 80% of companies said that digital operations are critical of every organizations manufacturing competitiveness Source: Digital Manufacturing & Design Innovation Institute Digitized Inventory Lot-Size of 1 Configured Products Industry 4.0

10. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 63Confidential Sharing Economy 50% of networked companies are more likely than their peers to have increased sales, higher profit margins, and be market leaders Source: McKinsey

11. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 64Confidential Resource Scarcity 64% of companies say that priority access to scarce raw materials/capacity and collaborative cost reduction with suppliers are extremely relevant to their competitive advantage Source: SCM World’s 2014 Chief Supply Chain Officer survey Joint risk mitigation with suppliers drives ability to leverage supply chain disruptions Steady rise of cost savings as justification for investments in Environmental Responsibility Talent acquisition and development has become twice as hard since 2011

12. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 65Confidential Networks Address the digital priorities with best-in-class cloud applications Digital Core Simplify and innovate the digital core with S/4HANA across the extended supply chain SAP HANA platform

Digitizing the Extended Supply Chain - Hans Thalbauer

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Digitizing the Extended Supply Chain - Hans Thalbauer