i-swat the future of the digital economy and sap's role

© 2015 SAP AG. All rights reserved. 1

i-SWAT

The Future of

the Digital Economy

and SAP’s Role

April 2015

INTERNAL


i-SWAT

For more than 40 years, SAP has helped businesses

run better and improve people’s lives

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2

For the world

74%of the world’s transaction

revenue touches an SAP system

For business

98%SAP customers represent

98% of the top 100 most

valued brands in the world

For you

97%Mobile solutions from SAP reach

97% of the world’s mobile

subscribers via text messaging

Sources: McKinsey/SAP analysis update 04/2013; SAP Corporate Fact Sheet 1/2015.


i-SWAT

We are the world’s largest provider of enterprise

application software


THE cloud

company

powered by

SAP HANA

Fastest-

growing

database

vendor

Fastest-growing

company

at scale

in the cloud

Market leader

for mobile apps

for business

Market leader

in products

for business

analysis

SAP HANA

is the market

leading platform

for real-time

computing

Source: SAP Corporate Fact Sheet 1/2015


i-SWAT

Our most recent key results and figures


Customers

Financials

Solutions

87%of Forbes

Global 2000

80%+are SME

companies

100%of Forbes top

sustainability

companies

98%of the 100

most valued

brands

€14.87 billion(+6%)

software and software-related

services revenue

€5.5 billion(+4%)

software and cloud revenue

€17.5 billion(+4%)

Total revenue

SAP HANA5,800 SAP HANA customers

1,800 startups

8,500 trained partners

25industries

11lines of business

74,406employees

EMEA: 33,340

Americas: 22,071

APJ: 18,995

120+nationalities worldwide

Employees

Source: SAP Corporate Fact Sheet 1/2015; SAP Integrated Report 3/2015

79%Employee

Engagement Index

70%Business Health

Culture Index


i-SWATi-SWAT

SAP HANA platform

SAP HANA Platform

Faster

Process massive amounts of

data, and deliver information

at unprecedented speeds

Smarter

Rethink and envision entirely

new ways and applications to

run your business

Simpler

Dramatically simplifies

complex and expensive

IT architectures

6.400 + 815.400 +2.846 +


SMART TRAFFIC

i-SWAT


i-SWATi-SWAT

5 Steps to enable IoT business model

EVENT STREAM

PROCESSING

REAL TIME

TRANSACTION

SAP IoT

THINGS & DEVICES

5 REAL TIME BUSINESS PLATFORM

SQL

PEOPLE

PREDICTIVE

ANALYTICS

SQLA

SAP

INDUSTRY

SCENARIOS

THIRD

PARTY

APPLS

4 MONETIZE

1 CAPTURE THE SIGNAL 2 SMARTIFY DATA 3 REAL TIME

PERFORMANCE

BILLING

REVENUE

FRAUD MGMNT.

SAP HANAPlatform for Internet

of Things


7.6b People

50b Things

During 2008, the number of things connected to the Internet exceeded the number of people on earth

2003 2010 2015 2020

The “Internet of Things”

Cisco Internet Business Solutions Group (IBSG), April 2011 and Morgan Stanley, October 2013

25b Things


The “Internet of Things”

1. Cisco, 2. Morgan Stanley

unique devices per consumer that could be connected2

200of connectable physical objects are not yet connected

to the Internet of Things1

99.4%

KPI 10


CITIZEN

INTELLIGENCEREAL TIME

OFFER

INNOVATION

BILLING

CITIZEN

NETWORKSMART

LOGISTICS

PREDICTIVE

MAINTEN.

OPERATIONS

SMART

TRAFFIC PLANNING OPERATIONKPIs

EMISSION

ASSET

EXCELLENC

SMART TRAFFIC

CITY

SAP HANA INNOVATION PLATFORM

TRANSACTIONAL ANALYTICAL GEOSPATIAL GRAPH PREDICTIVE IOT


PRIVATE CAR (RFID)

3B+ RECORDS/YR

TAXICAB (GPS)

8B+ RECORDS/YR

METRO PASSENGERS

~1B RECORDS/YR

BUS PASSENGERS

~1B RECORDS/YR

BUS (GPS)

6B+ RECORDS/YR

VIDEO CAMERA

2.4B RECORDS/YR

SMART TRAFFIC ON SAP HANADATA OF A SAMPLE MEGA CITY IN CHINA


PRIVATE CAR (RFID)

3B+ RECORDS/YR

TAXICAB (GPS)

8B+ RECORDS/YR

METRO PASSENGERS

~1B RECORDS/YR

BUS PASSENGERS

~1B RECORDS/YR

BUS (GPS)

6B+ RECORDS/YR

VIDEO CAMERA

2.4B RECORDS/YR

SMART TRAFFIC ON SAP HANAMAJOR CUSTOMER NEEDS

HOW TO LEVERAGE TRAFFIC RELATED BIG

DATA TO GET MORE BUSINESS VALUES?BIG DATA TO BE YOUR TREASURE NOT BURDEN


BUSINESS

MODELS

Interact with all

stakeholders to

generate new business

models and municipality

improvement

CONNECTED

CITIZEN

360 view of travellers and

citizens in order to offer the most relevant service

REAL TIME INNOVATION PLATFORM

CONNECTED

TRANSPORT

Leverage big data

scenarios with

connected vehicles and

transportation networks


Five areas of Focus at Nanjing


Nanjing


Zone and Travel Patterns

Traffic Analysis Zone

Total aggregate number of

Origin / Destination much

like Traditional trips based

zoning

Clustering which is based

on the behavior of trip

distances that traveler’s

take from the origin

Clustering: which

destination do the travelers

mostly head to in much the

same vain as a social

network analysis (

Total aggregate Origin –

Destination

Pattern Based Zoning

Clustering: Trip distances

from Origin

Clustering: Behavior of

direction of travel

(destinations)


CITY TRAVEL PATTERN DISCOVERY

ORIGIN-DESTINATION ANALYSIS – TAZ MATRIXVIDEO

OD-fullHD.mp4



ORIGIN-DESTINATION ANALYSIS – TAZ MATRIX



ORIGIN-DESTINATION ANALYSIS – CHORD FOR CONNECTIVITY & COMMUNITY



ORIGIN-DESTINATION ANALYSIS – TAZ TEMPORAL CHARACTERISTICS


(Smart) Operations

Control Center

i-SWAT


Demo Video Recording: Decision (2) – SAP City-App – The Customer’s App


Demo Video Recording: Decision (3) – SAP City App: The operator's view details


Awareness

• Overview of all

assets in

circulation and

reserve in a

map view (open

source maps /

Google Maps)

• Frequency of

fleet in

operation

overview with

details

• Historic, real-

time and

forecast data

from an account

based ticketing

platform

//localhost/Users/i006248/Desktop/SWAT/M2M/Videos/PUblic/Nanjing/Demo_An Ops Center for a Passenger Transport OR Public Transit Co-2.mp4

//localhost/Users/i006248/Desktop/SWAT/M2M/Videos/PUblic/Nanjing/Demo_An Ops Center for a Passenger Transport OR Public Transit Co-2.mp4


Awareness

• Drill down on

each fleets

status and

details

• Know real time

delays on all

assets and

capability to drill

down on each

assets

• Drill down on

load factor at

each stations


Impact

• Impact of delay on

passengers

travelling on

different route

• Impact on

‘stranded

passengers’

awaiting bus

• Passengers

planned O-D and

possible number

of impacts that

may affect the

deployment of

fleet

• Possible route

planning input for

modifying

frequency and/or

line


Decisions

Possible interactions

with passengers:

Coupons

Discount on

tickets

Send message

Twitter updates

A valuable input to

future short term

planning (& long

term as well)


Smart Logistics

i-SWAT


Smart Logistics solution overview

Logistical hubs, ports, airports, smart cities, transport & logistics

Hamburg Port is the largest port in Germany, and

the second-largest in Europe

Current turnover: 9 million containers/year.

Until 2025, an increase to 25 million containers is

expected.

Goal: make the infrastructure future-ready -

increase container turnover and optimize traffic

for Hamburg Port Authority, reduce idle times for

carriers.

Watch the complete video at http://www.youtube.com/watch?v=Zv46j2WZ3jU

What fascinates me most about the [Smart Port

Logistics] project is its power of innovation and

the collaboration with strong partners.

Sascha Westermann

Operational IT Traffic Management, Hamburg Port Authority

“”

//localhost/Users/i006248/Desktop/SWAT/M2M/Videos/T-Systems and Hamburg Port Authority_ Building Smarter Port Logistics with SAP HANA Cloud Platform(720p_H.264-AAC).mp4

//localhost/Users/i006248/Desktop/SWAT/M2M/Videos/T-Systems and Hamburg Port Authority_ Building Smarter Port Logistics with SAP HANA Cloud Platform(720p_H.264-AAC).mp4

http://www.youtube.com/watch?v=Zv46j2WZ3jU


Smart Logistics solution overview

Logistical hubs, ports, airports, smart cities, transport & logistics

../../M2M/Videos/T-Systems and Hamburg Port Authority_ Building Smarter Port Logistics with SAP HANA Cloud Platform(720p_H.264-AAC).mp4

../../M2M/Videos/T-Systems and Hamburg Port Authority_ Building Smarter Port Logistics with SAP HANA Cloud Platform(720p_H.264-AAC).mp4

../../../M2M/Videos/T-Systems and Hamburg Port Authority_ Building Smarter Port Logistics with SAP HANA Cloud Platform(720p_H.264-AAC).mp4

../../../M2M/Videos/T-Systems and Hamburg Port Authority_ Building Smarter Port Logistics with SAP HANA Cloud Platform(720p_H.264-AAC).mp4

35© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Executive Summary Solution Overview Value and References Next Steps

SAP Connected LogisticsStandard roles and look-and-feel: Hub operator

Manages network │monitors anonymous traffic │ maintains geo fences and points of

interest | informs of incidents & sends notifications (automatic using geo fence or manual)

36© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Executive Summary Solution Overview Value and References Next Steps

SAP Connected LogisticsStandard roles and look-and-feel: Dispatcher

Invites subcontractors │ monitors traffic of own fleet │ dispatches tours and freight |

communicates with drivers or other business partners


SAP Connected Logistics

https://www.youtube.com/watch?v=84I9VJIF9KU

https://www.youtube.com/watch?v=84I9VJIF9KU


Efficient

Operations

i-SWAT


ARIUnlocking the power of big real time data - for fleet management

http://www.youtube.com/watch?v=xtFTaLWv8Is

https://www.youtube.com/watch?v=xtFTaLWv8Is



https://www.youtube.com/watch?v=xtFTaLWv8Is


Predictive

Maintenance

i-SWAT


SAP Predictive Maintenance and ServiceLeverage operational insights to drive innovative new business models

Analyze and monitor equipment

data and correlate with

business information to predict

future malfunctions

Remotely sense operational

data from equipments

Monitor

Analyze

Predict

Act

Sense

Optimize maintenance and

service operations and enable

new business models around

the equipment

-44%Lower unplanned

downtime -17%Lower annual service and maintenance costs +28% Higher return on assets

Typical results*

Organizations adopting preventive and predictive maintenance and service approach as compared to organizations

practicing reactive maintenance and service

* SAP performance benchmarking


Predictive Maintenance

http://en.wikipedia.org/wiki/File:John_Deere_logo.svg

http://en.wikipedia.org/wiki/File:John_Deere_logo.svg


Predictive Maintenance

//localhost/Users/i006248/Desktop/SWAT/M2M/Videos/PredictiveMaintenance/How SAP HANA is Changing Predictive Maintenance.mp4

//localhost/Users/i006248/Desktop/SWAT/M2M/Videos/PredictiveMaintenance/How SAP HANA is Changing Predictive Maintenance.mp4


SAP Predictive Maintenance and Service – “Fleet Health on the sky”

https://www.youtube.com/watch?v=pDj5DjCBFig

https://www.youtube.com/watch?v=pDj5DjCBFig


Connected

Citizens/Consumer

s

i-SWAT


MOBIETT


Citizen Engagement Intelligence

1. Harvest Data

2. Merge Interactions

3. Gain Insights

4. Build Target Groups

intelligently

5. Trigger Actions

From various sources:

social, clicks, emails, sales,

automatic interpretation…

On topics,

on consumers

Understand trends,

prepare ad hoc actions

Prepare target groups,

use predictive algorithms

Trigger campaigns,

report on success,

compare to control groups

Select algorithm,

train predictive model

Predictive Analytics

Interactions

Consumer


New Channels


Relevance Drives Value

Personalization

CRM-based

offers

“I know who my

customers are,

but can I reach

them when it

counts?”

Tim

eli

ness

Location-based

offers

“I know where my

customers are,

but everyone gets

the same offer.”

Precision

1:1 Personalization

At the point-of-decision


Mapping stores vs STM’s lines and

stations

STM Partners’ stores

City of Montreal

Over 340 merchants, and 1,000 events being added to the program

City of Montreal

https://www.youtube.com/watch?v=tBIJ_Rc

va_Y

../../../M2M/Videos/PUblic/Societe de Transport de Montreal Goes Mobile with SAP(360p_H.264-AAC).mp4

../../../M2M/Videos/PUblic/Societe de Transport de Montreal Goes Mobile with SAP(360p_H.264-AAC).mp4

https://www.youtube.com/watch?v=tBIJ_Rcva_Y


Enthusiastic feedback from the media

Broad coverage from the press, regional & national radio and TV

networks


Consumer Adoption & UsageShattering a few myths

• Rapid consumer adoption based on word-of-mouth

only

Over 20,000 downloads of the iPhone application in

the first few weeks

• Repeat usage with more than 300,000 sessions

• Willingness to participate and share personal

information with STM. More than 50% of consumers

willing/eager to share personal profile

Consumers are eager to use the new service


Business ImpactWhat we see 16 weeks after launch

• Large volumes making this marketing

channel relevant to merchants

Over 4,000,000 offers sent by batches of

10

• Substantial impact on consumer behavior

Top 10 offers enjoyed average click

through rate of 67%, and validation rate

of 64%

Click-through rate for over a third of the

offers is above 10%

Key marketing metrics moving into double-digit territory


Vendor Activation PortalEnable a new Channel for partners

Admin_portal.mp4

Admin_portal.mp4

Analitica_Portal/Analitica_Portal.mp4

Analitica_Portal/Analitica_Portal.mp4


Vendor Activation PortalEnable a new Channel for partners

Portal_Partners.mp4

Portal_Partners.mp4


Activate the Ecosystem

Deploy Loyalty Programs

Mapping stores vs STM’s lines and

stations

STM Partners’ stores


Stored Value Cards

Stored Value Accounts

PrePaid Tickets Cupons

Payment Instruments / Integrations

Mobile Wallet

SAP MOBILE WALLET


Beacons


For Innovative Points of Sale

Proximity

Marketing

Indoor

Location

Contacless

Payment

Check-in

Coupons


INFONOMI

../../M2M/Videos/Indoor/liveMap.mp4

../../M2M/Videos/Indoor/liveMap.mp4


Monetise WiFi access with Wittos


Business Models

i-SWAT


TECHNOLOGICAL ADVANCES LEAD TO

DIGITAL TRANSFORMATIONV

alu

e c

reati

on

<1990s 2000s 2010s

COINS, NOTES,

CASH

TOKEN, PAPER

TICKET

MAGNETIC STRIPE, FARE MEDIA

CONTACTLESS, SMART

CARDS

MOBILE, NFC, BANK CARDS, APPS


MOVING FROM A SINGLE PHYSICAL TICKET

TO CONNECTED SERVICES

Ticket

Connected Services

UseMulti-modal

Ticket +

Services

NEW REVENUES

Account based

Ticketing / Smart

ticketing

Usage based

Value added

services

COMPETITIVE

DIFFERENTIATIO

N

CUSTOMER

INTIMACY

SMART

COMMERCE


PARTNERSHIPS

(MULTI-OPERATORS, SUPPLIERS)

Enterprises Hotels

Advertisers

Metropolitan

Transit Operator

Railway

Operators

Travel Agency

Travelers /

CommutersParking

Toll CollectCity Services


Defining a common back office with interoperability as key

80%+Of cost for maintaining

status quo

Bus lane fines

Road Charging

Parking

Work Place Parking

Public Transport

Concessionary

“Wave & Pay”

Charging

Usage Collection

Collection / Reimbursement

€

Chargeable & Concessionary Events

Pricing & Charging

Finance

Voice

E-mail

White Mail

Self Service

SMS

Mobile Phones

Contactless Card

Vending machines

£400 million a year spent on

revenue collection at TFL

Matthew Hudson, TFL Business

Development Chief

“”


i-SWAT

TRANSPORT FOR LONDON: ENABLING AUTO-PAY CONGESTION CHARGING SCHEME

OBJECTIVE

Revenue Management, Assurance and

policy execution for a Auto-Pay

congestion charge scheme

SOLUTION

SAP hybris Billing, Invoicing and

Customer Financials

BENEFITS

Ability to handle revenue assurance

process through automated and

guaranteed payments

Capacity to manage auto-pay

requirements which are increasing

prevalent in passenger transportation

industry


Belgian Railways Optimization for Distribution Process

Needs

B2B & B2C complex pricing (season tickets, one-off tickets)

Complex discounts, surcharges, commissions

Apportionment & reconciliation of journeys

Consolidation of data from 3rd party systems

Pre-integration in general ledger

Revenue recognition across a period

Self-service billing, payments for travelers and 3rd parties

Remote Ticketing on board of trains

Granular vie of customer account journeys

SAP Solution

Improve TTM and increase business flexibility for launching mobility & European travel offers with

SAP CC

High performance real-time pricing & quotations

Minimize customer developments and manual processing with configurable & pre-integrated

components

3500 km Of network

NMBS/SNCB– Autonmous government company split in 3 parts in

2005:

• Infrabel, Infrastructure

• NMBS/SNCB public railways managing freight and

passengers

• Holding, for supervision

207 million passengersIn 2008


City of Cape TownIntermodal Smart Travel Schemes

Needs

Flexible and agile pricing/rating capability for all types of services (metro, taxi, buses,

bicycle hires, parking, integrated leisure tickets etc …)

Cross charging capability for corporate, personal and families

Give citizen possibility to access their account via self-service

Enable complete 360° view of citizen interaction including smartcard interactions

SAP Solution

Rating to applies fares on both traditional tickets and new models, managing high

volumes of transactions

Settlement: Accumulates volume of charges to be paid to partners

Integrated out-of-the-box with CRM

Low TCO

City of Cape Town – metropolitan municipality which

governs the city of Cape Town, South Africa and its suburbs

and exurbs

3,740,026 population in 2011

Citizen cards to access parking,

cycling etc ...


i-SWAT

BUSINESS

MODELS

Interact with all

stakeholders to

generate new business

models and municipality

improvement

CONNECTED

CITIZEN

360 view of travellers and

citizens in order to offer the most relevant service

REAL TIME INNOVATION PLATFORM

CONNECTED

TRANSPORT

Leverage big data

scenarios with

connected vehicles and

transportation networks


i-SWAT

Simplify Everything

do Anything

i-SWAT


i-SWAT

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