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SAP Road Map for Industrial Machinery and Components Customer

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SAP Road Map for Industrial Machinery and

Components

Customer

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 2 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without

the permission of SAP. This presentation is not subject to your license agreement or any other service or

subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this

document or any related presentation, or to develop or release any functionality mentioned therein. This

document, or any related presentation and SAP’s strategy and possible future developments, products and

or platforms directions and functionality are all subject to change and may be changed by SAP at any time

for any reason without notice. The information in this document is not a commitment, promise or legal

obligation to deliver any material, code or functionality. This document is provided without a warranty of any

kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness

for a particular purpose, or non-infringement. This document is for informational purposes and may not be

incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except

if such damages were caused by SAP’s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results

to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-

looking statements, which speak only as of their dates, and they should not be relied upon in making

purchasing decisions.

Legal disclaimer

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 3 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

SAP HANA: Treasury and

Risk Management

Mobile Analytics Cloud Database and Technology Applications

Aftermarket Supply Chain Sales R&D/Engineering Manufacturing

Cloud for Sales

Sales

Configuration

Configuration

Analytics

Customer Engagement

Intelligence

Smart Business for

Project Execution

Commercial Project

Management

Product Structure

Synchronization

Visual Enterprise

Manufacturing

Planner

SAP HANA New User

Experience

Internet of

Things Leverage the Platform

SAP Supply Chain

Management on

SAP HANA

Supply Chain

Info Center

SAP Sales and

Operations Planning on

SAP HANA

SAP Demand Signal

Management on

SAP HANA

Shop-Floor

Dispatcher

Manufacturing Insight

and Material Lookup

Integration of SAP

MII and Microsoft

Office 365

MRP Planner

Cloud

for Service

Mobile: SAP

Service Manager

Predictive Maintenance

and Service

Customer Engagement

Intelligence

MRP on SAP

HANA

SAP HANA: Financial

Planning and Analysis

SAP HANA: Enterprise

Risk and Compliance

Early Product

Costing

SAP HANA: Purchase

Order History

SAP HANA: Smart Business

Cockpit for Purchasing

Ariba Network with

Direct Material

UX

Explorer

Finance

Technology and Platform

Solution Billing

Keyword navigation in innovations for Industrial

Machinery and Components (IM&C) along line of business

(LoB)

Procurement

SAP hybris

B2B Commerce

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 4 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

SAP Road Map for Industrial Machinery & Components Agenda

Introduction and Industry Trends

Innovations Along the IM&C Value Map:

Research and Development (R&D)

Sales

Manufacturing

Aftermarket Service

Finance

Procurement

Innovations for the Technology Platform:

SAP HANA

New User Experience

Internet of Things

Leverage the Platform

Introduction and Industry Trends

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 6 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

Key trends are shaping the IM&C industry

Visualization, simulation,

and digitization

Connected world and

Internet of Things (IoT)

Big Data enabling new

opportunities and insights

Augmented reality

More machines (50 billion)

than people exist in the

world

Massive investments in

intelligent infrastructure

equipment globally

Reduction in

manufacturing labor

arbitrage opportunities

Creation of a second

economy through

digitization

Vast, automatic, and

invisible

Global demand for

investment expected to

reach US$24 trillion

annually

Turnkey solutions

Manufacturing for the

segment of one

Ability to design, build, and

ship anywhere

Modularization and

platform-based

manufacturing

Opportunities that introduce challenges, requiring changes in how people work

Technological

Innovation

The Next Industrial

Revolution

The Digital

Economy New Business Models

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 7 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C manufacturers will transform from selling products,

spare parts & services to providing complete solutions

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 8 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

SAP solutions enable the next generation of manufacturers.

Industrial Machinery and Components Value Map 2014

Technology

and Platform Real-Time

Enterprise

Real-Time

Analytics

Enterprise

Mobility

Enterprise Information

Management

Cloud

Solutions

Application

Integration Big Data

3D Business

Visualization

R&D / Engineering

Integrated Product

Development

Continuous Product and

Service Innovation

Product Safety and

Stewardship

Aftermarket Service

Multichannel Service

Excellence

End-to-End Service

Management

Advanced Contract

Management

Service Parts

Management

Manufacturing

Engineer-to-Order and

Project Manufacturing

Make-to-Order

Manufacturing

Asset Operations

and Maintenance

Supply Chain

Sales, Inventory, and

Operations Planning

Demand and

Supply Planning

Demand Management

Manufacturing and

Supply Orchestration

Sales

Collaborative Sales Force

Automation

B2B Commerce

Sales of Configurable

Products and Solutions

Transportation

Management

Quality Management

and Compliance

Dealer Management

Billing and Revenue

Innovation Management

Commercial Project

Management

Sales Performance

Management

Warehouse

Management

Human

Resources Core Human Resources

and Payroll Talent Management

Time and Attendance

Management

Workforce Planning

and Analytics

Finance Financial Planning

and Analysis

Accounting and

Financial Close

Treasury and Financial

Risk Management

Collaborative Finance

Operations

Enterprise Risk and

Compliance Management

Procurement

Information

Technology IT Strategy and

Governance

IT Infrastructure

Management

IT Portfolio and Project

Management

IT Service

Management

Application Lifecycle

Management

IT Strategy and

Governance

Strategic Sourcing and

Supplier Management Procure to Pay

Commodity

Management

Embedded Predictive

Technology

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 9 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

The IM&C value map and SAP

Customers

Service

providers

Component

suppliers

Contract

manufacturers

Partner and

channel sales Engineering

partners

Smart machines

All references are to the solution today

unless marked as *planned innovation

or **future direction

R&D/Engineering

Procurement

Supply chain

Manufacturing

Sales

Aftermarket

service

People and talent Finance

Technology solutions

Analytics, data management, development and integration, mobility, and user experience

SAP HANA platform

SAP Business Suite and

SAP NetWeaver BW

Sales and

service

cloud

People

cloud Financial

cloud

Predictive

maintenance

and service**

SAP hybris

B2B

Commerce

Machine-to-

machine

platform**

Sourcing

and

procurement

cloud

Sales and

operations

planning

SAP Jam – social collaboration

Ariba Network – business collaboration (buy and sell)

Innovations Along the IM&C Value Map

Innovations Along the IM&C Value Map

Research & Development

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 12 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

Only the SAP Product Lifecycle

Management (SAP PLM)

application offers the unique

ability of maintaining different

BOM structures between

engineering and production –

while allowing them to

synchronize changes in design

over the lifetime of the product

Integrated product development for discrete industries Product structure synchronization

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 13 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

Reduce time to volume

with improved handover to

manufacturing through efficient

visual restructuring

Efficient and user-friendly

thanks to fast processing

throughout visually supported

drag and drop

Full integration

with the SAP ERP application with

no system boarder between

engineering and manufacturing

All references are to the solution today unless marked as *planned innovation or **future direction

Integrated product development for discrete industries Manufacturing planner in SAP 3D Visual Enterprise applications

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 14 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

Packaged solutions and overview of SAP Rapid

Deployment solutions

Rapid Deployment Solution (RDS) for

LoB Product Development:

SAP PLM rapid-deployment solution

(foundation)

SAP Product Structure Synchronization for

Recipes rapid-deployment solution

(handover to Manufacturing)

SAP 3D Visual Enterprise rapid-deployment

solution (SAP 3D Visual Enterprise

Generator)

SAP Project Portfolio Management rapid-

deployment solution

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 15 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

Highlights of innovation for SAP PLM 7.x

SAP PLM 7 SAP PLM 7.01 SAP PLM 7.02

Simplicity and new

user interface

Collaboration

Embedded analytics

Object navigator

Access control

management

Engineering change

management

Product structure

management

Synchronization

with manufacturing

Product compliance

management

Engineering record

Extended

embedded analytics

Simplification of

engineering

processes

Visual enterprise

Product safety

BOM redlining

Document browser

Status and release

management

SAP PLM x*

Usability

improvements

Improved CAD

integration

Management and

visualization of

complex products

BOM explosion

and classification

on the SAP HANA

platform

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 16 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – R&D Smart business for project execution

Provides the project manager or person responsible with a

single source of holistic transparency on the status and

progress of project execution with respect to financial and

logistical data

Offers immediate insights into existing deviations and

predictions of potential issues with drill-down capabilities for

root cause analysis, including immediate action patterns

Scope Key benefits

Flexible, real-time analysis of variances and deviations in

high-volume data everywhere at anytime

Ability to provide predictions based on current and historical

data

Drill-down and insight-to-action functions

Ability for consumers to define thresholds and criticality of

analytical figures

Provision of business insights that have not been

available before and an ability to identify issues faster and

earlier and take necessary actions

Combined holistic project progress view of financial,

logistical, and schedule data

Reduced data complexity by focusing on exceptions and

deviations, leveraging by software-proposed mitigation

options

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 17 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – R&D SAP Commercial Project Management application

Extension to SAP Business Suite applications, leveraging the

existing functionality for opportunity management, contract

management, billing, project structuring, procurement, and so

on

Ability to connect the end-to-end front-office reality to a

central and fully integrated enterprise resource planning

(ERP) solution to improve consistency of processes,

transparency, accuracy, and control

Scope Key benefits

Project work space as an environment for project

professionals that provides an integrated view across

systems and applications to help users complete their tasks

Project cost and revenue planning to plan and forecast

quantities, costs, and revenues throughout the project

lifecycle

Project issue and change management to track project

issues and change requests systematically

Transparent and accurate project status (on project

financials, for example) anytime and anywhere

Fast creation of reliable bid estimates using the UI of

Microsoft Excel

Decrease percentage of unapproved change requests

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 18 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

Project system with SAP HANA – value proposition Example: Complex engineer-to-order projects

Material

planning

and MRP+

Quotation

and sales

order

handling

Project

creation and

planning

Engineering

and BOM

creation

Project

execution

In-house

production

Purchasing

(Resource-

related)

billing

Project

(period-end)

closing

Exception-based monitoring and control

Higher End-to-End Process Efficiency Enhanced user productivity and improved project profitability

Transparency of status and progress | Project financials and cash management | Open purchase documents and invoices | Open

reservations | Exceptions and variances | WIP++ | Stock overview | Missing parts | Claims and notifications | Quantities, dates, and

values

Large data volumes | Single source, real-time data | Consumer-grade user experience | Alerting | Insight-to-action cockpit |

Dashboards and graphics | Integration with SAP 3D Visual Enterprise | Search | Interactive navigation pattern |

Accelerated processing of large data volumes

along an end-to-end process

Reduced

lead time from opportunity and

development to delivery of product

Improved

employee productivity and project

profitability

+Material requirements planning ++Work in progress

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 19 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – R&D Early product costing*

Early product costing allows companies to manage and

optimize product cost in line with market and customer

requirements. At an early stage of product development or

customer quotations, cost-saving potentials can easily be

realized. Risk along the lifecycle can be identified and

mitigated.

Scope* Key benefits

Purpose-built, comprehensive application for early

engineering, quotation, and lifecycle costing

High-performance, real-time calculation engine

Flexible, hierarchical product costing structures

Native inbound and outbound integration with SAP ERP

and the data structures of SAP PLM

Single version of truth for real-time vertical visibility into

drivers of cost

Innovate and perform in changing business environments

Accurately calculate against target cost while mitigating

financial risks

Integrate processes across divisions; increase

collaboration between functions

Shorten quotation cycle; reduce time to market

Reduce product cost and avoid unprofitable product

variants

Increase quote win-rate

All references are to the solution today unless marked as *planned innovation or **future direction

Innovations Along the IM&C Value Map

Sales

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 21 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – collaborative sales force automation SAP Cloud for Sales solution and SAP Jam social software platform

User-friendly cloud solution for the sales front office with PC,

mobile, Microsoft Outlook and Lotus Notes access, designed

for sales people and how they sell today. Collaborate more

efficiently with feeds for groups, customers, opportunities,

and quotes. Integrate with SAP Jam to collaborate across

departments and companies. Hybrid deployment with

integration to SAP ERP or the SAP Customer Relationship

Management (SAP CRM) application.

Scope Key benefits

Full process support: Accounts, contacts, leads,

opportunities, activities, integrated to SAP ERP and SAP

CRM

Cloud-based configure, price and quote process with the

SAP Solution Sales Configuration application through

partners*

Quote support with integration to pricing in SAP ERP, order

capture and order status integration with SAP ERP, and

replication of quotation to quote or order in SAP CRM*

Better mobile support: Offline, SAP JAM feeds, workflows,

personalization, and integration of customer insight*

Configure, price and quote process in SAP Cloud for Sales

integrated with quote and order in SAP ERP and SAP

CRM**

Low up-front investment and total cost of ownership

(TCO); fast ROI

High adoption in sales due to ease of use and by working

mobile or from Microsoft Outlook or Lotus Notes

Improve sales team productivity; structure sales process

and work collaboratively

Efficiently manage opportunities and analyze the pipeline

to take action when needed

Faster quote to order cycle times by integrated processes

from sales front office to back office

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 22 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – SAP hybris B2B commerce SAP hybris B2B Commerce

With the SAP hybris B2B commerce solution, IM&C

manufacturers can boost their business by selling more

service parts, standard products, configurable products, and

solutions directly to end customers and through distributors.

Manufacturers can leverage the key multichannel touch

points Web shop, mobile shop, call center, print, and

marketplaces to improve the customer experience and

customer intimacy across all channels and devices.

Scope Key benefits

Leading B2B commerce platform – self-service Web shop

for customers and distributors

Integrated across Web and mobile shop, call center,

marketplaces, and print catalogs

Integrated product and Web content management; print

catalog management

Ability of customers and distributors to find and order

service parts and configurable products*

Integrated with SAP ERP, SAP CRM, and

SAP Cloud for Customer*

Efficiently manage brands across multiple channels

Sell more spare parts, configurable products, and

solutions

Enhance customer value – quickly find spare parts and

tailor products and solutions

Reduce sales costs – self-service reduces internal sales

effort

Reduce quote-to-order cycle times by integrating

customer, distributor, and internal sales

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 23 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – sales of configurable products and solutions SAP Solution Sales Configuration

SAP Solution Sales Configuration enables sales teams,

channel partners, and customers to configure, price, quote,

and order complex systems and solutions accurately and

efficiently, allowing them to increase margins, revenue,

customer loyalty, and share of wallet, while protecting existing

investments in product configuration.

Scope Key benefits

Robust, scalable configuration engine optimized for solution

composition from the bottom up

Ability of manufacturers to add guided selling and product

selection for existing configurable products

Collaborative model maintenance

Smooth integration in sales and service functions in SAP

software (SAP CRM and SAP ERP)

Cloud-based configure, price and quote process integrated

to Cloud for Customer by partners*

Increased margins by moving from product toward

solutions business

Ability to win more deals if quotes for complex solutions

are timely, to the point and well priced

Ability to increase customer loyalty and share of wallet –

and offer a complete solution

Ability to protect existing investments – works on top of

existing products in variant configuration (VC) or Internet

pricing and configuration (IPC)

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 24 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

Watch a video on

SAP Solution Sales Configuration

IM&C innovations – sales of configurable products and solutions SAP Solution Sales Configuration

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 25 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – sales of configurable products and solutions Configure, price, and quote (CPQ)

Configure, price, and quote (CPQ) offers a significantly

improved sales configuration solution that enables sales

teams, customers, and channel partners to configure, price,

quote, and order products and solutions accurately and

efficiently. Leveraging the hybris platform, sales and

marketing can manage the content for rich and proper display

of options and values, with high flexibility UI customization

and extension.

Scope Key benefits

User-friendly CPQ solution for customers, partners, and

sales*

Content management and UI customization for rich and

proper display of products, options, and values*

Deployment on hybris on premise, hosted, or in the cloud*

Integration to cloud for sales and mobile, SAP CRM, and

SAP ERP to be used by internal sales**

Guided selling – find the right configurable products**

3-D visualization of configured products**

Quote proposal document generation**

Ability to search for similar configurations on stock and

show options chosen by other customers with SAP HANA**

Increase sales efficiency by enabling sales to enter

configurations easily to fit customer needs

Sell more configurable products and solutions by offering

user-friendly self-service in a customer and dealer portal

Reduce quote to order cycle times by integrating

customer, distributor, and internal sales

Win more deals by generating professional-looking quote

proposal documents more easily

Protect existing investment – works with existing

configurable products in variant configuration (VC),

Internet pricing and configuration (IPC)

All references are to the solution today unless marked as *planned innovation or ** future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 26 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – sales of configurable products and solutions Analytics for configurable products on SAP HANA

Analytics for configurable products on SAP HANA provides

users with the ability to analyze sales of configurable products

properly. It combines options with other sales-relevant data to

transform valuable information into business decisions that

enable profitable growth.

Scope Key benefits

Analyze individual options and combinations of options*

Analyze selling and nonselling options*

Search existing orders and inventory in real time for

partially or fully configured products*

Search for any classified objects more easily*

Generate new views in SAP HANA for consumption by

other UI tools, such as SAP BusinessObjects solutions*

Intelligently streamline product option offerings

Improve pricing strategy

Analyze the manufacturing process (configure to order or

make to stock)

Increase forecast accuracy during materials planning of

configurable products

Minimized implementation cost and TCO

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 27 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – billing and revenue innovation management Solution sales and billing

Solution sales and billing supports an automated end-to-end

order-to-cash process for usage-based billing business

models, enabling manufacturers to become solution

providers. The solution enables creation of collective invoices

across orders, contracts and projects, within single- or

multisystem landscapes.

Scope Key benefits

Definition of complex pricing models based on usage*

Single quote and contract to the customer*

Rating of high-volume usages, billing in sales and

distribution functionality of SAP ERP*

Invoices for a preconfigured set of sales and service orders

and contracts*

Collective invoices in multisystem landscapes

Review and approval process at invoice level*

Reduced time to market for new packaged offerings

Reduced time and cost to create invoices

Higher win rate of deals

Increased customer retention

Reduced number of bill disputes

Reduced days sales outstanding (DSO) thanks to

accurate and timely billing

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 28 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – sales performance management SAP Customer Engagement Intelligence solution

SAP Customer Engagement Intelligence enables real-time

insight, interaction, and execution for excellence in sales,

marketing, and service. By fostering a deeper understanding

of your customer base, the solution helps you grow revenue

and margin strategically.

Scope Key benefits

Customer value intelligence – intelligence and

recommendations for which customers to target and what

to position to them for profitable growth

Audience discovery and targeting – high-volume, real-time

customer segmentation

Account intelligence – mobile execution on insight and

recommendations for specific accounts

Invest the right resources in the right customers, products,

and channels

Maximize purchase opportunities and sales conversion

Identify cross-selling and up-selling opportunities

Provide more time for selling

Manage customer engagements actively to reduce

attrition

All references are to the solution today unless marked as *planned innovation or **future direction

Innovations Along the IM&C Value Map

Supply Chain

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 30 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – supply chain SAP Supply Chain Management on SAP HANA

Material requirements planning (MRP) and the SAP

Advanced Planning and Optimization (SAP APO) component

on SAP HANA complement each other for end-to-end supply

chain planning. The SAP Supply Chain Management (SAP

SCM) application on SAP HANA enables deep visibility into

large volumes of supply chain–related data, enabling a truly

demand-driven supply chain in real time.

Scope Key benefits

Faster replanning to allow more frequent MRP runs in

shorter cycles

Simulation of different what-if scenarios in real time

Global cross-plant planning

Early identification of critical materials

Optimization of MRP planning run on SAP HANA for

complex scenarios*

Improve supply chain responsiveness by proactively

managing changes in the demand and supply

Improve planning and forecasting accuracy

by utilizing trusted and up-to-date supply chain–related

data

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 31 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – supply chain SAP Supply Chain Management on SAP HANA

The supply chain info center provides standard, near-real

time analytical reporting for different use cases. The solution

can be deployed without disruption to your business using a

side-by-side SAP HANA database or by running SAP APO on

the SAP HANA database.

Scope Key benefits

Standard analytical reporting with streamlined data load.

Predefined dashboards for different use cases (analytical

workflows) for planning scenarios based on SAP APO.

Ability to consume data via state-of-the art business

intelligence (BI) tools, such as SAP BusinessObjects BI

solutions or Microsoft Excel.

Demand waterfall analytics*

Forecast consumption analytics*

Decision support based on near-real-time information

Reporting on data aggregates possible –

such as grouping by product family

Increased performance for analytics in SAP APO by

orders of magnitude to allow near-real-time reporting

Highly attractive, user-friendly UI design

Simplified approach for operative reporting (reporting

framework in the SAP NetWeaver Business Warehouse

(SAP NetWeaver BW) application)

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 32 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – supply chain SAP Sales and Operations Planning application on SAP HANA

Solution to support sales and operations planning process for

IM&C, including integration with operational financial

planning, demand planning, and supply planning. The solution

is built on the SAP HANA platform and can be deployed on

premise or in the cloud.

Scope Key benefits

Complete demand, supply, and finance model

Sales and marketing forecasting

Consensus demand planning

Revenue and profit impact

Social collaboration based on SAP Jam*

Standard SIOP (SmartOps) integration*

Mobile analytics and executive console**

Transaction-level integration**

Orchestrate input from sales, marketing, finance, and

operations, including quantity, price, revenue and margin

Avoid long-term gaps in supply by understanding capacity

and material constraints, including contract manufacturers

Realize profit-optimized operational scenarios

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 33 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – supply chain SAP Demand Signal Management application on SAP HANA

SAP Demand Signal Management provides a consistent,

centralized in-memory database for all available demand

signals. This data provider serves as the central source of

truth for demand and market analysis. Data can be consumed

by SAP Business Suite, analytic applications, and mobile UIs.

Scope Key benefits

Analyzes point-of-sales data via in-memory technology

allows direct consumer insights

Creates logistics corrective measures out of real-time

analytics

Enables short-term forecasting and improves forecast

accuracy

Integrates and leverages social media and syndicated

market research data

Provides real-time access to crucial data for mobile users

Real-time insights into downstream demand and market

research data

Awareness of trends and active influence on the business

Increased consumer satisfaction, brand loyalty, and

reduced loss of sales

Transparency of promotion sales performance

Lumia 900

Lumia 800

Lumia 710

Belle N8

Belle E7

Lumia 800

Lumia 800

Lumia 800

Sales Quantity of Lumia 800

All references are to the solution today unless marked as *planned innovation or **future direction

Innovations Along the IM&C Value Map

Manufacturing

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 35 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – shop-floor dispatcher Shop-floor dispatcher

Enables production supervisors to allocate production tasks

to specific machines on a short-term basis and to monitor the

entire production process

Scope Key benefits

Interactive dispatching of operations on individual

machines; visualization of operation dependencies within

orders

Alerts for capacity overload or operation dependencies

violation

Alerts in cases of critical or unexpected machine status

changes

Freely configurable information area for the individual

objects

New, highly interactive UI for production supervisors or

supervisors supporting state-of-the-art UI techniques

Decision support for order-assignment to individual

machines

Quick reaction to unforeseen events

Standard integration – no need to integrate third-party

tools

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 36 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

Innovations for IM&C Shop-floor dispatcher and monitor

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 37 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – enhancements for SAP Manufacturing

Execution SAP Manufacturing Execution

The SAP Manufacturing Execution application 6.1 focuses on

reducing TCO, enhancing usability with a new UI, and

flexibility based on new extensibility mechanisms to reduce

TCO with SAP Manufacturing Execution and the SAP

Manufacturing Integration and Intelligence (SAP MII)

applications on the same instance of the SAP NetWeaver

technology platform.

Scope Key benefits

SAP Manufacturing Execution and SAP MII on the same

instance of the SAP NetWeaver technology platform*

Highly configurable production operator dashboard

integrated with SAP 3D Visual Enterprise for instructions

and defect-logging*

Multilevel traceability and electronic device history records

(e-DHR): Manual and automated data collection from plant-

floor activities to maintain complete as-built records*

Nonconformance management: Perform tests and take

corrective actions, including in-line sampling and functions

for visual test and repair*

Reduced TCO

Improved performance and scalability

Reduced rework by spotting problems earlier in the

manufacturing process

Enhanced user experience with the touch-screen UI of the

production operator dashboard

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 38 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – enhancements for SAP MII SAP MII

SAP MII 14.0 will provide a new set of tools designed

specifically to assist with plant performance management.

The tools will be foundational components for a full-featured

set of plant performance management functions.

Scope Key benefits

New KPI manager for plant metrics, including

personalization and alert framework*

Integration of SAP Crystal Reports software*

Integration of SAP BusinessObjects Dashboards software*

Consumption of services of SAP MII by Sybase mobile

infrastructure*

Enterprise tag catalog to map plant tag-data to the asset

hierarchy of SAP Enterprise Asset Management (SAP

EAM) solution*

Self-service composition environment for users to develop

dashboards and reports*

Improved standard functions to support plant performance

management applications

Collaboration and KPI measurement tools for teams

working on plant improvement initiatives

Lower TCO and quicker time to value for plant composite

applications

Self-service to free up IT time

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 39 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – manufacturing insight and material

lookup Manufacturing insight and material lookup

Mobile application to enable production managers to check

the status of shop-floor orders and to drill-down into details.

Scope* Key benefits

Ability to view information about production or components

when away from the office

Display of data from different functionalities of SAP ERP in

one app

Strong focus on visualization and an amazing user

experience

Configurable UI

Best-in-class decision support tool for production

managers

Availability of all relevant information anywhere and

anytime

Enhanced productivity

Smooth production process

Immediate reaction to critical situations

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 40 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – integration of SAP MII to Microsoft

Office 365 Integration of SAP MII to Microsoft Office 365

SAP and Microsoft have incorporated manufacturing data,

contextualized it with real-time enterprise data, and are

delivering it through a flexible self-service analytical user

experience into Microsoft Office 365.

Scope Key benefits

A simple, common and collaborative environment to

visualize live plant data

Data integrity in Microsoft Excel workbooks

One view of data across manufacturing locations

IT provision of validated feeds of information directly to

Excel

Extended reach of factory information to virtually any role,

anywhere, and on any device – through familiar and simple

tools

Reduced total cost of ownership for IT to build and

maintain standard reports or help maintain security

Reduction in custom calculations and errors that are

required to turn raw data into information

Enhancement of end users’ abilities to make faster, better

decisions

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 41 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – MRP planner** Role-specific app

MRP planner provides real-time information and insights into

material demand and availability. The user is guided through

process that provides the needed information at the right

place and time.

Scope** Key benefits

Role-specific screen flow

User-friendly UI

Support from graphical elements where appropriate

Ability to run on multiple devices

Better planning results

Easier access to all relevant information

Faster decisions

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 42 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – MRP on SAP HANA MRP on SAP HANA

Running MRP on SAP HANA will increase the speed at which

supply and demand decisions can be made. Through the

improved insights and speed the planner can work at a more

detailed level reaching an even higher optimum in material

planning.

Scope* Key benefits

A 50% reduction in MRP runtime with high-speed reads

Ability to replan quickly if conditions change

Simulation of different what-if scenarios in real time

Better-synchronized demand and supply for global cross-

plant planning

Instant update on supply network collaboration with latest

demand information

Faster reaction to demand changes

Reduction of stock-outs

Decreased inventory and safety stock

Limited bull-whip effect

Holistic production planning across all relevant production

sites

All references are to the solution today unless marked as *planned innovation or **future direction

Aftermarket Service

Innovations Along the IM&C Value Map

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 44 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – aftermarket service SAP Cloud for Service solution

Take customer service to a whole new level – leveraging the

cloud for unprecedented speed and flexibility. Gives you

options with multiple service channels, provides agents with

easy access to complete, contextual information – and equips

service managers with real-time insight into call center

performance.

Scope Key benefits

Multichannel service ticketing

In-context social collaboration

Solution finder with knowledge base Integration

Full-featured mobile experience

Service analytics

Native integration with SAP ERP

Social customer service

Self-service support portal

Deliver a consistent experience across all channels.

Provide agents with complete, up-to-the-minute customer

information

Improve agent productivity with a user-friendly design and

easy integration to your existing knowledge base – or the

available knowledge base from SAP

Harness collective service expertise and share relevant

information across your enterprise

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 45 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – end-to-end service management SAP Service Manager mobile app

Boosts productivity and customer satisfaction by giving field

engineers quick access to the right resources and information

– at the point of service. Empowers the workforce with

everything they need to efficiently install, inspect, maintain,

and repair assets in the field.

Scope Key benefits

Leverage real-time decision-making across all parts of the

service cycle

Integration of the SAP Multiresource Scheduling application

Customer service integration of ESRI and SAP ERP*

Empowerment of field service personnel with interactive 3-

D visualizations of equipment assembly and maintenance

to diagnose and resolve issues faster

Improve first-time problem resolution and ensure

compliance with service-level agreements (SLA)

Streamline communications between the field and the

office

Enjoy real-time visibility into work status, technician

location, and financial performance

Lower inventory carrying cost and wasted travel

Increase customer satisfaction and revenue

Minimize lost revenue and shorten billing cycles

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 46 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – end-to-end service management SAP Multiresource Scheduling

SAP Multiresource Scheduling helps optimize the planning,

scheduling, dispatching, and staffing of service technicians.

Companies can improve productivity and increase revenue

potential by optimizing the resource management for service,

plant maintenance, and project businesses fully integrated in

SAP Business Suite.

Scope Key benefits

Enhanced optimizer for best resource utilization*

Extended team planning and job bundling*

Mid- and long-term capacity and demand planning*

Extended Web planning board and automatic planning and

optimizer enhancements*

Improved mobile scenarios with SAP Work Manager and

SAP CRM Service Manager*

Increased customer satisfaction by having the right

service at the right location at the right time

Improved responsiveness by flexibly adjusting service

schedules to meet changing service demands

Reduced idle time of your service staff and tools by

optimizing your resource utilization

Streamlined planning processes

Transparency of the planning situation

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 47 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – aftermarket service Predictive maintenance and service

Understand the root cause of emerging issues or predict

upcoming problems to optimize product design, reduce the

cost of service, improve spare parts availability, and sell new

service bundles.

Leverage SAP Real-Time Data Platform to store and relate

operational and business data.

Scope Key benefits

SAP Real-Time Data Platform with the predictive analysis

library (PAL) of SAP HANA, R library, and rules engine for

advanced analysis and prediction*

Transparency and service center to see where problems

occur**

Machine-health fact sheet to understand actual status or

history of key parameters**

Increased asset reliability and reduced cost of service.

Higher first-time fix rate and spare parts availability

Enablement of new service offerings to improve service

revenue and margin

Support of energy savings and improved customer

satisfaction

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 48 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – aftermarket service SAP Customer Engagement Intelligence solution

New ways to work smarter for marketing, sales, and service.

Target the right customers and discover the right audiences.

Enjoy intelligent recommendations for improved wallet share,

revenue, and margin. Understand what your customers are

thinking and saying. Create, execute, and track sales and

marketing initiatives.

Scope Key benefits

Audience discovery and targeting (ADT) to segment large

customer and consumer populations rapidly and easily

Customer value intelligence (CVI) to grow revenue and

margin with real-time insight into the current and potential

value of your customers.

Social contact intelligence (SCI) to analyze and nurture

your contacts – what they’re saying to you and to each

other. Take action and reach out with true 360-degree

contact intelligence.

Segment your customers based on high data volumes for

personalized treatment

Grow revenue and margin strategically with a deeper

understanding of customer value

Invest the right resources into the right customers,

products, and channels

Maximize purchase opportunity and sales conversion with

targeted selling recommendations

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 49 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – multichannel customer service hybris

With the hybris multichannel commerce platform, IM&C

manufacturers can boost their business by selling more

service parts directly to end customers and through

distributors. Manufacturers can leverage the key multichannel

touch points of Web shop, mobile shop, call center, print, and

marketplaces to improve the customer experience and

customer intimacy across all channels and devices.

Scope Key benefits

Leading multichannel commerce platform – self-service

Web shop for customers and distributors

Integrated across Web and mobile shop, call center,

marketplaces, and print catalogs

Integrated product and Web content management; print

catalog management

Ability to customers and distributors to find and order

service parts and configurable products more easily*

Integrated with SAP ERP, SAP CRM, and

SAP Cloud for Customer*

Efficiently manage brands across multiple channels

Sell more service parts, configurable products, and

solutions

Enhance customer value – quickly find spare parts and

tailor products and solutions

Reduce sales costs – self-service reduces internal sales

effort

Reduce quote-to-order cycle times by integrating

customer, distributor, and internal sales

All references are to the solution today unless marked as *planned innovation or **future direction

Finance

Innovations Along the IM&C Value Map

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 51 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – finance Financial planning and analysis with SAP HANA

SAP helps you to drive financial performance through focused

execution of strategies across all levels of your business. Our

solutions put you in control of performance.

Scope Key benefits

Business planning with SAP HANA: Strategic (long-

range) planning, rolling-period planning, and real-time

dynamic forecasting

Net margin analysis with SAP HANA: Analytics solution

with full cost visibility at market-segment and operational

levels. Provides line item detail access. Model and simulate

optimization initiatives.

Increase time available for analysis to support the

business through reduced time spent on aggregating data

Reduce decision cycle time through real-time insight into

key metrics and faster input of plan information

Empower more granular planning and scenario modeling

for better preparation and more accurate results

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 52 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – finance Early product costing*

Early product costing allows companies to manage and

optimize product cost in line with market and customer

requirements. At an early stage of product development or

customer quotations, cost-saving potentials can be realized.

Risk along the lifecycle can be identified and mitigated.

Scope* Key benefits

Purpose-built end-to-end application for early engineering,

quotation, and lifecycle costing

High-performance, real-time calculation engine

Flexible, hierarchical product costing structures

Native inbound, outbound integration with SAP ERP and

data structures in SAP PLM

Single version of truth for real-time vertical visibility into

drivers of cost

Innovate and perform in changing business environments

Accurately calculate against target cost while mitigating

financial risks

Integrate processes across divisions; increase

collaboration between functions

Shorten quotation cycle; reduce time to market

Reduce product cost and avoid unprofitable product

variants

Increase quote win rate

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 53 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – finance Accounting and financial close with SAP HANA

SAP is using SAP HANA to make significant changes to

controlling functions and help handle Big Data in applications

like line item–based reporting, which provides previously

impossible levels of insight.

Scope Key benefits

SAP Business Suite powered by SAP HANA:

Line item–based reporting available for general ledger,

customer and vendor accounts, cost centers, orders,

projects, profitability analysis, and aggregation on the fly

Financial closing cockpit: KPI-oriented management

cockpit

Integrated financial and management accounting**

Integrated profit-and-loss planning**

Improve insight through reporting capabilities enabled by

SAP HANA

Accelerate the period close by just-in-time information

processing – the end of batch

Reduce the time, risk, and cost involved

in completing regulatory filings and disclosures

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 54 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – finance Treasury and financial risk management with SAP HANA

SAP provides analytical dashboards as single source of truth

with flexible aggregation and slice and dice of real-time data

which enables quickly reacting to financial exposures.

Scope Key benefits

SAP Smart Business for cash management: Cash

forecasting and analysis of critical KPIs from a single user

interface

SAP Smart Business for treasury: Better insights into

liquidity risk, counterparty risk, and commodity risk

management; central control with complete traceability of

business events for external auditing; and new analytics

Cash management on SAP HANA*

Improve cash and liquidity forecasts and rely on accurate

and timely global cash position information

Ensure investment and borrowing at best possible rates

and lowest costs

Pinpoint and manage financial risks and take more

effective steps to anticipate and control them

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 55 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – finance Collaborative finance operations with SAP HANA

SAP HANA helps free up time for value-added activities,

improve service levels by empowering your team with better

access to information, and makes mobile reporting scenarios

practical.

Scope Key benefits

Apps on SAP HANA: Real spend, SAP Receivables

Manager mobile app, and SAP Working Capital Analytics,

DSO scope analytic application

Improvements in incoming bank statement processing

SAP Cloud for Travel on SAP HANA

Shared service manager*

Improve decision-making through financial information

anytime, anywhere

Reduce time, risk, and cost by streamlining your payable

processes and accelerating your bank statement

processing with search and matching technologies

Reduce travel cost and stay compliant by streamlining

your entire travel management process

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 56 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – finance Enterprise risk and compliance management with SAP HANA

SAP software embeds controls and risk management across

functions that span transaction processing to financial

reporting. You can conduct cost-effective regulation and

policy compliance while proactively mitigating all types of

business risk.

Scope Key benefits

Key risk indicator based on SAP HANA: Analyze large

volumes of data and consolidate risks from multiple

systems

High-volume and cross-system transaction monitoring:

Perform automated controls with related testing and

monitoring

Access control role analytics

SAP Fraud Management analytic application (available in

SAP HANA Enterprise Cloud service)

SAP HANA Live for SAP solutions for GRC

Preserve and grow value with strong and effective

enterprise risk management

Ensure effective controls and ongoing compliance with

continuous monitoring and automated testing

Manage access risk and prevent fraud by detecting,

remediating, and ultimately preventing access violations

All references are to the solution today unless marked as *planned innovation or **future direction

Procurement

Innovations Along the IM&C Value Map

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 58 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – procurement Optimized purchase order history with SAP HANA

SAP HANA provides performance improvements in retrieving

purchasing documents for a selected vendor or material via

standard reporting transactions purchase orders by vendor,

material, account assignment or number; purchase

requisitions: list display; collective release of purchase

requisitions; assign and process requisitions

Scope Key benefits

Performance improvements for many operational reports

and transactions dealing with purchase orders that have a

large history

Quick retrieval of all relevant assigned purchasing

documents for a selected vendor, selected material, or

specific document number via reporting

High-performance creation of follow-on documents for

purchase orders with a high magnitude of line items

Accelerated, long-lasting processing of purchasing

documents

Real-time insight and quick access to information

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 59 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – procurement SAP Smart Business cockpit for purchasing on SAP HANA

SAP HANA provides increased efficiency by finding the right

things quickly and in context:

Access to real-time information and simulations for control

and analysis of operational procurement data

Flexible compilation of cockpit content

Scope Key benefits

Monitoring KPIs and alerts with corresponding actions to

solve issues*

Ability to react to off-contract spend proactively*

Graphical visualization of goods movements to spot

deviations efficiently*

Interactive correlation between stock and movement

information*

Real-time access to high volumes of purchasing data

Fast and complete search across all related business

documents

Real-time calculation of KPIs and simulations – predictive

analysis

Integration of analysis and operational activities via

insight-to-action functions

Preview

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 60 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – procurement Extend ARIBA Network to include direct materials

Compliment and extend existing supply chain management

process of buyers and sellers. Initial focus on supply

collaboration scenarios such as order, advanced ship notice

(ASN), invoice collaboration, and supplier on-boarding.

Scope Key benefits

Enable a single access point and collaboration platform for

all partners across different supply chains*

Support collaborative supply chain processes for direct

materials like order collaboration, forecast collaboration,

inventory collaboration, and quality collaboration*

Single collaboration platform for all parties, improving

speed of doing business and reducing complexities

Faster on-boarding of business partners, accelerating

return on investment

Support for real-time, integrated, and end-to-end business

processes for reduced supply chain risk

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 61 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – procurement Services procurement with network intelligence

When requestors create a request, they will now leverage the

power of the network to make faster, smarter, and more

efficient decisions.

Scope Key benefits

Real time KPIs for suppliers of services*

Preferred candidate based on past hiring patterns*

Ability for requestor to see the market rates for temporary

labor positions that they are hiring for based on third-party

data or data in Ariba Network*

Availability of market intelligence on what they should be

paid for a certain job type based on skills and location

when requestors create a request

Ability of managed service provider or recruiter to

recommend a supplier or candidate likely to be hired by

the hiring manager

preview

All references are to the solution today unless marked as *planned innovation or **future direction

Technology Platform Innovations

Technology Platform Innovations

SAP HANA

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 64 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – SAP HANA SAP HANA

SAP HANA Platform provides the ability to analyze massive

quantities of data in local memory so that the results of

complex analyzes and transactions are available at your

fingers – and business decisions can be executed without

delay.

Scope Key benefits

Smart data access providing real-time virtualized data

access to other data sources

Enhanced unstructured text analysis

Extended application services (XS) providing flexible

application development

Interoperability support for SAP Real-Time Data Platform

Next generation of information composer*

Enhanced cloud deployment capabilities and virtualization

support*

Transformed support for processes in SAP Business

Suite**

Reduce system landscape complexity and TCO

Reduce effort and cost to develop and deploy next

generation applications

Simplify data modeling and enhance user self service

capabilities

Support high value business use cases like predictive

maintenance and service better

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 65 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

SAP HANA Enterprise Cloud Cloud infrastructure plus managed services

SAP HANA Enterprise Cloud

SAP NetWeaver

Business Warehouse SAP Business Planning

and Consolidation

SAP Business Suite SAP ERP | SAP CRM | . . .

Custom Apps Big Data | Consumer

SAP HANA Cloud Platform

Services

Assessment

On-boarding and

migration

Cloud hosting and

managed services

Custom services

In-memory infrastructure

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 66 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

SAP HANA Enterprise Cloud End-to-end services

Services cover the end-to-end lifecycle for solutions based on SAP HANA in

SAP HANA Enterprise Cloud

Services are consistent and smooth to avoid redundancy and ensure a smooth handover to

the run phase

Tailored services from the SAP for Professional Services solution portfolio plus

the SAP Active Global Support organization complement the SAP HANA Enterprise Cloud

service

SAP HANA Enterprise Cloud – end-to-end services portfolio

Cloud-Hosted Infrastructure and

Managed Services

Application Management and Custom

Services Assessment and Advisory Service

On-Boarding and

Migration

Service Technical scoping

and on-boarding

assessment

Migration to

SAP HANA –

assessment

Technology Platform Innovations

New User Experience

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 68 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

Platform and UX innovations UI development toolkit for HTML5 (SAPUI5)

SAPUI5 is a client-side HTML5 and JavaScript-based

rendering library and programming model that is optimized for

consumption of data in SAP software. It combines new

qualities like openness and flexibility with known strengths of

SAP software like enterprise readiness and product standard

support. SAPUI5 is the go-to technology for SAP Fiori apps.

Scope Key benefits

Rich control set for desktop and mobile including charts

Application development environment for all platforms

OData integration for timeless software

Extensibility concepts for custom controls

Modern theming and branding concepts

Embraces open source framework(s) and Web standards

Business agility through availability on any device and for

any platform

User productivity and happiness through increased

flexibility, openness, and pixel-perfect design

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 69 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

Platform and UX innovations UI theme designer

The UI theme designer is a browser-based tool that allows

you to create your own themes to adapt the visual

appearance of applications. It will become a single tool for

theming and branding key user interfaces in SAP software.

Scope Key benefits

Support for Cascading Style Sheets (CSS) 3 and Leaner

CSS (LESS)

Graphical, Web-based WYSIWYG editor through controls

and application (preview)

Quick and expert theming

External editing and custom CSS possible

Enabled for SAPUI5 and the Web Dynpro development

environment (ABAP programming language) and floor plan

manager (FPM) – more will follow

Ability to run on the SAP NetWeaver Application Server

component (ABAP programming language), SAP

NetWeaver Portal component, and plain Web servers

Increased user happiness

Reduced effort for branding

Low TCO through availability also with SAP HANA

Enterprise Cloud

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 70 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

Platform and UX innovations SAP Screen Personas software+

SAP Screen Personas software provides the ability to meet

business user needs for rapid screen changes, delivering

improved user experience, and increased work efficiency.

Scope Key benefits

Align user interfaces to business user needs and personal

work styles

Add extra information through labels, custom tool tips, and

sticky notes

Render and personalize screens created in SAP Dynpro

(SAP GUI) without programming

SAP Screen Personas is targeted specifically at customers

of SAP ERP 6.0

A modern Web browser (Microsoft Internet Explorer 8,

Mozilla Firefox 13, and so on) and Microsoft Silverlight 5 (or

higher) are required on the client side

Improve visual appeal, end-user productivity, and

performance when working with SAP software

Fast and cost-effective screen changes

User empowerment by enabling IT professionals along

with key and end users

+Available as repeatable customer solution as of December 2012

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 71 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

Platform and UX innovations SAP NetWeaver Business Client software

SAP NetWeaver Business Client software offers a

harmonized access to business applications including

SAPUI5, FPM and Web Dynpro (ABAP), and SAP GUI along

with any Web-based content.

Scope Key benefits

Single point of entry for the user with role-based access

(transactions PFCG and PCD) to business applications

Harmonized experience through integration and

interoperability of different UI technologies

Availability as desktop version and HTML version (HTML

version with reduced functionality)

Allows modification-free “mash-ups” via side panel*

Web browser–like interaction paradigm

Increased user productivity

Reduced TCO

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 72 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

Platform and technology innovations – SAP Fiori apps Renew user experience of functions in SAP software

Leveraging existing investments and latest technology by SAP

Sales

Human resources

Purchasing

Acro

ss

vari

ou

s l

ines o

f b

usin

ess

Across device types

Finance

Manufacturing

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 73 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

Platform and technology innovations – SAP Fiori apps Expanded LoBs and roles in SAP Fiori – wave 2*

Sales

Sales rep

Inside sales

Sales manager

Finance*

Cash manager

G/L analyst

Controller

HR

Employee

Manager

More

Manufacturing

Operations

Purchasing

MRP planner

Production worker

Production supervisor

Quality engineer

Project manager

More

Purchasing agent

Purchasing manager

More

SAP

Fiori

*Current planning. Not all roles will be available for all deployment options; some of the roles might be delivered later.

Technology Platform Innovations

Internet of Things

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 75 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

SAP platform and UX innovations The rise of the machines

Forecasts predict significant growth potential in machine-to-

machine (M2M) communications. Explore the new SAP and

Economist Intelligence Unit (EIU) M2M resource center – and

find research and opinions from SAP, the EIU, and other

partners as they examine successful M2M business models

and scenarios.

Scope

Falling costs

Wider connectivity and maturing technologies (cellular,

LTE/4G, smart phones and tablets, mobile apps, and so on)

Enablement of regulatory mandates (smart metering, e-call,

and so on

Growing range of successful applications and business

models

Maturing provider ecosystem

Rise of the cloud

Explore the new SAP and

Economist Intelligence Unit

(EIU) M2M resource center

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 76 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

The machinery cloud: the big picture

Connected machine

platform – M2M-

enabled

SAP Mobile Platform

Smart analytics

Big Data management

(Powered by SAP HANA)

Smart connectivity

(multiple telco operators) SAP Business Suite and other data

Pull and push

Business

process

automation

Solutions

App n Smart solutions

Partner apps

App 1

Smart

logistics Smart

assets

Smart

home

Smart

factories Smart

machines

hybris, cloud for

customer, and

other

Content providers

Customer and

ecosystem networks

Ariba

Network Content providers

Business networks

Smart

device mgmt.

(device clouds)

Connected devices

Technology Platform Innovations

Leverage the Platform

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 78 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – OEM Embed SAP products into your products and services

Change the game and achieve competitive differentiation

through breakthrough innovations by strategic business

innovation that use new technologies and implement new

industry business models and customer value.

Improve your business by technology improvement and best

practices.

Scope Key benefits

Industry 4.0

Business networks and integration

Predict and act on sensor data

Cloud, mobile, and Big Data

Additional competitive differentiation

Incremental revenue opportunities through new software

offerings

Lower cost of software development and maintenance

Protection of branding and intellectual property

Innovation capabilities of SAP

Ecosystem

All references are to the solution today unless marked as *planned innovation or **future direction

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 79 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

IM&C innovations – OEM Embed SAP products into your products and services

Watch a video on

Embedded SAP Solutions and OEM Platform Partners

New methods

New markets

© 2014 SAP AG or an SAP affiliate company. All rights reserved.

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