After going through several rounds of transition, e.g. lean management and agile engineering, design thinking and business model innovation, customer-centered innovation is the gist of it: be it feasibility and efficiency, desirability on the end user side or economic viability, SAP's development cycles revolves around our customers. The talk also outlines different innovation strategies and examples.

1. 1© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Customer-Centered Innovation
Dr. Tobias Hildenbrand, Products & Innovation, SAP SE
BMI Think Tank, St. Gallen, Switzerland, 10 February 2015

2. © SAP 2015 | 2
What does SAP do today?

3. © SAP 2015 | 3 MORE THAN 40 YEARS AGO WHEN WE STARTED…
Cloud
HANA
Mobile
70k
Analytics
Applications

4. © SAP 2015 | 4 …YET QUITE EXTENSIVELY AND SUCCESSFULLY
of Global Fortune 500
86%
Customers
of the 100
Most Valued Brands
98%
of Forbes Top
Sustainability Companies
100%
are SME Companies
>80%
SSRA Revenue
€14.03bn
(+11%)
SW & Cloud Revenue
€5.28bn
(+11%)
Total Revenue
€16.90bn
(+8%)
4 years of double-digit SSRS
growth
Industries
26
Lines of Business
11
3,600 HANA Customers
HANA
1,200 Startups
5,700 Trained Partners
Employees
as of 6/30/2014
67,651
EMEA: 31,614
Americas: 19,647
APJ: 16,391
Nationalities Worldwide
120
Financials (FY 2013)
Solutions Employees

5. © SAP 2015 | 5 WHERE DID WE COME FROM AND WHAT IS OUR GOAL?
Source: SAP

6. © SAP 2015 | 6
“Ich wollte Mitarbeiter so motivieren, dass sie mehr leisten
als der Durchschnitt. Freie Entfaltung und Kreativität, ohne
bürokratische Zwänge und Regeln. Dazu passt auch keine
Stempeluhr, die mir immer zuwider war.”
Dietmar Hopp (one of the founders of SAP)

7. © SAP 2015 | 7 CUSTOMER-CENTERED PRODUCT AND SERVICE INNOVATION
Approach:
Customer-
Centered
Goal: Continuous Innovation

8. © 2015 SAP AG. All rights reserved. 8© SAP 2015 | 8
LARGE-SCALE LEAN & AGILE DEVELOPMENT WITH SCRUM
Conduct regular
Retrospectives
Split organization
into teams
Split work
Split time
Deliver more
frequently
Risk
Risk
Deliver more reliably
and predictably

9. © SAP 2014 | 9
‘‘A DEVELOPER NEEDS TO BE CURIOUS AND
ALSO DEVELOP EMPATHY FOR END USERS“

10. © 2015 SAP AG. All rights reserved. 11© SAP 2015 | 11
DESIGN THINKING TO DEVELOP EMPATHY & FRESH IDEAS

11. © SAP 2015 | 12
What about Viability?

12. © SAP 2015 | 13 …OR HOW DOES SAP IMPLEMENT “BUILD-MEASURE-LEARN”?
Analyze &
Improve
Challenge
& Change
Test & Verify
with MVPs
Evaluate
& Decide
w/ Business Case
Enterprise View = Business Model Canvas
Business Model Network View

13. © SAP 2015 | 14 HOWEVER, BUSINESS MODEL INNOVATION TAKES MORE
Organizational Setup Requires Business Model
Innovations to be Managed Across Board Areas
Recent Examples for Business Model Innovations at SAP

14. © SAP 2015 | 15 CO-INNOVATION EXAMPLE – SAP FASHION MANAGEMENT
 Consortium with 4 industry-leading customers
 Co-Innovation with Co-Funding of Development
 Common Product Vision + regular Reviews
 Technical Proof-of-Concept for new platform
 Design Thinking for new needs and capabilities

15. © 2015 SAP AG. All rights reserved. 16© SAP 2015 | 16 EXAMPLE: SAP INNOVATION MANAGEMENT SOLUTION
Research with customers Low-fidelity prototype High-fidelity prototype Final product
Co-design of product and services

16. © SAP 2015 | 17
What did we learn so far?

17. © 2015 SAP AG. All rights reserved. 18© SAP 2015 | 18 BACK TO CUSTOMER-CENTERED INNOVATION
ASE
Scrum
Agile
Principles
Lean Thinking
BMI
BMDI
Design Thinking

18. © 2015 SAP AG. All rights reserved. 19© SAP 2015 | 19 INNOVATION CULTURE MIX AT SAP
Collaboration Control
Cultivation Competence
Actuality
Possibility
impersonalpersonal
Design Thinking
Co-Innovation
“AppHaus” concept
Idea-to-Market
(SAP QMS Framework incl.
Customer-Centered Innovation)
Innovation Centers
Intrapreneurship
Program
Centers of
Excellence,
e.g. Security
Framework: William E. Schneider

19. Thank You !
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