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Executive Overview Presentation May 2013 Idea to Performance Connected Process Optimization

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Executive Overview Presentation

May 2013

Idea to Performance

Connected Process Optimization

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2

80%

Customer Value Treating Tens of Thousands of Cancer Patients Per Day!

Maintain optimal

inventory levels in the

distribution network

Significant cost savings

from RoHS-related

compliance

Overall system performance

improvement

$

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 3

33%

Customer Value The 1st Chinese Railway Equipment Manufacturing Company

13% 40% Decrease in product

costs

Improvement in accuracy

of engineering changes

Faster product R&D cycle

CNR Tangshan Railway Vehicle Co. Ltd.

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 4

Market Trends are Driving Change

Connected Planet

Smart products

Digitalization

Data explosion

Evolution of Business Models

‘Me’- economy

Dynamic innovation-networks

From products to performance & regulatory

Evolution of Population

Demanding customers

Social media revolution

Aging experts & Digital natives

Shrinking Planet

Shrinking ecological renewal

Urbanization

Environmental expectation

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 5

Intelligent

Execution

Resourceful

Operations

Be Successful

Intuitive

Experience

Improved adaptability, consume-ability and flexibility

Enhanced intellectual power, insightful decision support

First to market with increased brand recognition and profits

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 5

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 6

The Required Change Transformation to the Connected World

plan

Service

Product Development

Idea & Portfolio Planning

Ramp-Up to Production

Knowledge Ramp-Up

MFG Planning

Manufacturing

Environment

Health & Safety

Asset Utilization

Sourcing

Typical Sequential Process Steps

From sequential steps

to connected networks

From complex

transitions to

synchronized data

From local views to

business insights

From partial checks to

sustainable design,

make and service

From develop to stock

to develop to customer

defined requirements

Change for success

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 7

Idea to Performance Differentiation Connected Processes from Development through Service

Innovation driven by

connected teams

Execution driven by

connected processes

Satisfaction driven by

connected customers

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 8

Business Benefits

Idea to Performance, Example Harley Davidson, Achieved Business Benefit

Operations Monitoring Planning & Monitoring

3D Ideation

Visual Work

Instructions

Cost -7%

Net Margin +19%

Dividend +25%

Share Repurchase >$2.5MM

From 21 day schedule to 6 hour

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 9

Trends Put Greater Pressure on KPI’s

Sustainable Innovation

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 10

Sustainable Innovation Sell Performance – Not Products

Continuous Product and Service Innovation

Integrated Product Development - Discrete

Integrated Product Development - Process

Embedded Compliance in Product Development

Smarter Response Information-driven insights and actions

based on close connection to customers

and social networks

Simpler Experience Easy to configure, customer focused

products or services

Faster Innovation Bring innovative products or services

faster to market

Smarter

Faster

Simpler

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 11

Responsive Manufacturing Global Standards, Increased Throughput, Reduced Cost

Repetitive Manufacturing

Make-to-Order Manufacturing

Engineer-to-Order & Project Manufacturing

Outsourced Manufacturing

Manufacturing Visibility & Performance Smarter Response Better decisions and improved reactions to

customer demand and process variances

Simpler Experience Intuitive and visual user experience

Faster Innovation Decrease innovation ramp to volume

production time

Smarter

Faster

Simpler

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 12

Operational Excellence Confidence to Grow your Business

EHS Management

Enterprise Asset Management

Energy & Environmental Resource Management

Quality Management and Compliance

Smarter Response Proactive & collaborative operational risk

management

Simpler Experience Intuitive, accessible, visual

Faster Innovation Fewer production interruptions, higher

quality, safer

Smarter

Faster

Simpler

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 13

Idea to Performance, Integrated Solutions

Idea to Performance addresses the business

needs of:

The COO, and Heads of R&D, MFG, Operations

and Sustainability

Idea to Performance is adaptable to industry

needs:

All supported business processes can be tailored to

discrete, process or CP industry needs

Idea to Performance is a solution bundle of:

• R&D/Engineering, Manufacturing, and

Sustainability Line of Business solutions

• Enterprise Asset Management and 3D Visual

Enterprise applications

Innovations from analytics, mobile and social

technologies

Powered by SAP HANA

Powered by

SAP HANA

SAP R&D,

Engineering

SAP Manu-

facturing

SAP Enterprise Asset

Management

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 14

17%

Higher return on assets where asset management

systems are fully integrated,

with inventory management,

MRO, purchasing,

engineering and finance.

Source: SAP Performance Benchmarking

40% Higher employee

productivity when mobile access is

provided to employees

across all levels.

Integrated Processes with Big Data Delivered Anywhere

61%

Higher revenue from

new products when

portfolio goals are

communicated throughout

the organization and results

are measured and reported

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 15

The Value of Idea to Performance

Smarter:

Smarter by providing better real time insight via HANA-

driven analytics

Faster

Faster execution via insight across R&D, Asset

Management, and Manufacturing with embedded

sustainability

Simpler:

Simpler user experience via 3D visualization and social

on mobile

Smarter

Faster

Simpler

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 16

SAP Innovations

Applications SAP HANA Mobile Analytics Cloud

80% Of decision makers think access to the right information at the

right time is critical to their business

Source: SAP Performance Benchmarking

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 17

Applications

28% Lower IT operating costs with a consolidated single solution and

platform landscape

Source: SAP Performance Benchmarking

Sustainable

Innovation

SAP Portfolio and

Project

Management 6.0

Product Structure

Management

SAP 3D Visual

Enterprise Planner

Operational

Excellence

Environmental

Health and

Safety

Management 4.0

Change

Management

Quality Issue

Management

Responsive

Manufacturing

• SAP ME 6.1 GA

• SAP MII 14.0 GA

• SAP Plant

Connectivity 2.3

• Shop Floor

Dispatch 1.0

• Quality Issue

Management 1.0

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 18

HANA

68% Greater ability to use Big Data for organizations with a well-defined

enterprise-wide high-performance analytics strategy

Source: SAP Performance Benchmarking

Sustainable

Innovation

Commercial

Project

Management on

HANA

Operational

Excellence

Energy and

Environmental

Resource

Management on

HANA

Predictive

Maintenance on

HANA

Responsive

Manufacturing

Overall

Equipment

Effectiveness on

HANA

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 19

Mobile

22% Fewer days in inventory for companies using a mobile warehouse

and inventory solution

Source: SAP Performance Benchmarking

Sustainable

Innovation

3D Visual

Enterprise

Mobile Viewer

on Android

Operational

Excellence

Mobile Asset

Management

Responsive

Manufacturing

CAMS on Mobile

Mobile

Manufacturing

Applications

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 20

Cloud

85% Of companies believe cloud will have a major impact on their

organization through efficiencies, innovation or competitive

differentiation

Source: SAP Performance Benchmarking

Sustainable

Innovation

Operational

Excellence

Responsive

Manufacturing

EHS Regulatory

Content

EHS Regulatory

Documentation

Product Safety On-

Demand

Product Stewardship

Network

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 21

Analytics – Throughout the Lifecycle

20% Higher revenue per employee in organizations that are using

information to identify strategic and competitive advantages

Source: SAP Performance Benchmarking

Sustainable

Innovation

Product performance and benchmarking through

dashboards and embedded analytics

HANA Analytics to support full lifecycle decision making

Predictive safety (people, process, asset safety) and

analytics

Visual Enterprise Spatial Analytics

Operational

Excellence

Responsive

Manufacturing

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 22

We not only want to save lives, but we want to demonstrate clear

commitment towards our social and environmental causes.

Snehashish Sarkar, Senior Manager, Varian Medical Systems

80% Overall system performance

improvement

Maintain optimal inventory levels

in the distribution network

$ Significant cost savings from

RoHS-related compliance

Treating Tens of Thousands of Cancer Patients Per Day!

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 23

Where SAP 3D Visualization is used, our delivery times have been reduced

by 15%–20% due to less rework and more efficient operations.

John Patrick Batache, Director of Lifecycle Logistics and Support, Northrop Grumman

15-20% Improved delivery times Fewer errors, improved accuracy

$ Significant cost savings

over 5 years

A World-leading Defense Contractor

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 24

By offering a single application that supports unified market management,

R&D, manufacturing and customer service, SAP has helped TRC run better.

Song Yubin, CIO, CNR Tangshan Railway Vehicle Co. Ltd.

33% 40% Faster product R&D cycle Improvement in accuracy of

engineering changes

13% Decrease in product costs

The 1st Chinese Railway Equipment Manufacturing Company

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 25

The ability to easily access employees’ health indicators and make sure

that the occupational health processes are being conducted accordingly

shows us, on a daily basis, the benefits of using SAP.

Enilson Miranda Santos, Personnel Admin Manager, ArcelorMittal Brasil

80% 40% Reduction in time to

complete accident

investigations and reports

Reduction in occupational

health exams cost

50% Increase in effectiveness of

environment, health, and safety

action plans

The world’s leading steel and mining company.

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 26

SAP Enterprise Asset Management provides a holistic view of the overall

maintenance schedule and pre-execution work. And it gives all of our

business users the details they need to make better decisions.

Ron Chow, Maintenance and Reliability Leader, Nova Chemicals Corporation

47% 22% Reduced time spent on

reactive, emergency work

Improved maintenance

scheduling compliance

61% Increase time spent on

proactive, preventative

maintenance

Developing great plastic products that enhance everyday life.

27 © 2013 SAP AG or an SAP affiliate company. All rights reserved.

Why SAP? • Integrated end-to-end processes

• Connected product portfolio strategy in one

unified product

• Managed compliance throughout the lifecycle

• Insight into product performance and

benchmarking

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 27

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Thank you

F name MI. L name

Title

Address

Phone number

www.sap.com/industries

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 28

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