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SAP Transformation Study
SAP’s Digital Transformation
to Run Simple
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Table of Contents
1. Why we need to transform 02
1.1. Digital Trends and their impact on SAP 03
1.2. Digital transformation impacts every Line of Business 04
along the entire value chain
2. The Run Simple Initiative 05
2.1. Transformation Approach 06
2.2. Transformation Principles 07
2.3. Enabling Technology 08
3. How SAP is Running Simple across all Business Units 09
3.1. Learn how SAP uses Data Management as the 11
Basis for Digital Transformation
3.2. Learn how Marketing at SAP boosts Pipeline Growth 15
powered by SAP Hybris
3.3. Learn how Sales at SAP Sells More in Less Time 21
powered by SAP Hybris Marketing and Sales
3.4. Learn how Finance at SAP drives business 26
performance in the digital world powered by
S/4HANA
3.5. Learn how Procurement at SAP Simplifies Processes 32
powered by SAP Ariba Solutions
3.6. Learn how SAP simplifies Travel and Expense 37
Management powered by SAP Concur
3.7. Learn how SAP simplifies External Workforce 42
Management powered by SAP Fieldglass
3.8. Learn how HR at SAP Drives Employee Engagement to 47
the Next Level powered by SAP SuccessFactors
3.9. Learn how SAP streamlines Enterprise Analytics to 54
achieve Steering Excellence in the Digital Age
4. Want to learn more? 59
Why we need to transform
SAP is one of the largest and most well-established software companies in the world. Despite
that, we experience the same pressures as other organizations. We must accelerate to remain
competitive in a changing economy.
Companies are expected to grow while expanding on operating profit, be predictable and
provide a unique customer experience. In order to cater to those multiple objectives, SAP needs
to reinvent our operating model. This model comprises all the ingredients that contribute to the
company’s value generation—capabilities and processes, technology assets, and people.
Customer / End-User
improved customer satisfaction
empathize delight
Shareholder grow Operating Model leverage Market Trends
improved efficiency improved decision making improved reach
be profitable differentiate
improved profitability
be predictable
digitize reinvent
Analytics
GROW, EXPAND ON PROFIT, EMPATHIZE WITH AND LEVERAGE DIGITAL TRENDS TO
AND INCREASE THE SHARE DELIGHT CUSTOMERS STAND OUT IN THE MARKET &
OF PREDICTABLE REVENUE STAY AHEAD OF THE CURVE
In a digital world, customer
TO MEET SHAREHOLDER
expectations change. Whether Typically process design comes
EXPECTATIONS it's B2C or B2B, they expect to first, and technology to enable
In a cloud / subscription business, be able to buy whatever they those capabilities follows. In a
costs are immediate (cost of sales, want, whenever they want it. They digital world, technology innovation
cost of delivery) while revenue demand a seamless cross-channel also triggers process innovation—
is ratable. Average deal size is experience available any time. business models arise from trends
decreasing while at the same time True empathy is expected at every that have not been there before. To
transactional volume is rising. touch point along the customer stay ahead of the pack, companies
This requires careful management journey, meaning companies need to quickly leverage those
of process cost and customer need to be able to predict their opportunities to change and
retention to surpass the margin customers’ needs. differentiate themselves frequently.
trough, and to be able to scale—
especially through automated down
stream processes.
SAP’s Digital Transformation to Run Simple 2
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Digital Trends and their
impact on SAP
Across all industries, companies are experiencing unprecedented change that is
transforming business models, processes and even the way we work. Technology
trends such as hyper connectivity, cloud computing, and big data go hand-in-hand with
social and business trends that are changing how we live and work.
Internet of Machine Augmented Block Chain Cloud Social Mobile Big Data &
Things Learning Reality Computing Analytics
From onPrem to (micro-service) From human high-touch to From direct high-touch to digital /
Cloud platform & software automated intelligent operations low-touch (omni/cross-) channels
offerings providing a unique customer
experience
In the midst of this change, complexity has become Major trends are impacting SAP’s value chain
a major problem that stands in the way of digital end-to-end. To tap into the opportunity of digitization,
transformation and innovation. Becoming a digital this means a transformation from on-premise to
business means first cutting through this complexity. cloud platform offerings, from human to automated
Simplicity is a prerequisite for innovation, and this operations, and from direct high-touch to digital
resulting technology will be a core part of the overall low-touch channels.
business strategy.
Constant innovation is the key to growth.
Customers’ needs change constantly. It’s easy to
become irrelevant unless a company has a bias toward
innovation, versus a bias toward the status quo. ”
Bill McDermott, SAP CEO
SAP’s Digital Transformation to Run Simple 3
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Digital transformation
impacts every Line of Business
along the entire value chain
R&D Marketing Sales
BOOST INNOVATION AND GROW QUALITY PIPELINE INCREASE CUSTOMER-
TIME-TO-MARKET FACING TIME
• Instant insights into
• Short and effective innovation campaign effectiveness • Automated sales content creation
cycles through real-time • Automated intelligent nurturing based on profiling / need-based
customer and market insight segmentation
• Automated routing through
• Continuous delivery of contextual reasoning • Automated intelligent up-sell /
integrated micro-services on cross-sell recommendations with
an easy-to-extend platform win rate prediction
• Real-time 360º customer insights
Service &
Support F&A HR
SUPPORT WITHOUT INCIDENTS PREDICT AND STEER WIN THE WAR FOR TALENT
IN REAL-TIME
• Proactive care through real-time • Automated intelligent talent
360 customer insight and issue • Real-time view on cross-board sourcing through semantic
prediction steering indicators with reasoning of skill profiles and
• Always-on customer support drill-down and simulation / social network crawling
through in app chat bots and prediction capabilities
artificial intelligence • Fully automated down-stream
execution
Analytics Master Data Standardization
Across the entire value chain A holistic, company-wide master
allowing real time decision making. data concept across organizational
From Data to Insight to Action. boundaries.
SAP’s Digital Transformation to Run Simple 4
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
The Run Simple Initiative
In 2016 SAP has embarked on a major transformation initiative called Run Simple.
It’s a journey to reduce complexity in our internal processes and systems.
We have set in place Top Focus Projects, addressing our customers’ and employees’ pain
points through fundamental process simplification, enabled by best-in-class technology:
R&D Marketing Sales Delivery Service & F&A HR
Support
1 Simplify Selling
2 Cloud Renewals: Strengthen Customer Retention
3 Simplify Cloud
Simplify Sales
4
Commisions
5 S/4HANA: Renew Our Digital Core
6 Revenue Accounting
7 Standardize Services Project Management
8 Improve External Workforce Management
9 Simplify Travel and Expense Management
10 HR Goes Cloud
With Run Simple we make a promise. A promise to What I like best about all our
our customers to become more agile and to deliver
software that’s easy to use. We have to rethink our own Run Simple initiatives and our 10
business model to be future-ready. We must adopt Focus Projects is the goal itself—
groundbreaking ideas and technologies more quickly.
And we have to put our customers’ needs in the center
to achieve a simpler SAP. We use
of all our activities. In other words: We have to make our own standard software the
business simple!
way it was built, with little to no
Run Simple is our operating principle and the logical customization, and we use the
response to customer, shareholder, and market
expectations. Run Simple is how we reinvent our same software that we sell. We
operating model, redesigning processes along customer ourselves become the best SAP
journeys and evolving the enterprise architecture, all
while being a lighthouse for our customers.
reference customer.”
Christian Klein, SAP COO
The goal: Be the MOST Innovative Cloud Company,
Powered by SAP HANA.
SAP’s Digital Transformation to Run Simple 5
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Transformation Approach
High customer and people centricity is at the core of our Run Simple philosophy. We
put people’s needs at the center of our activities and then work towards fulfilling them
by redesigning processes, standardizing master data, modifying the IT landscape, and
leveraging analytical insights.
Business Process Leverage Digital
Redesign Innovations
Across all Lines of Powered by SAP
Business. S/4HANA.
Master Data Run Simple = Analytics
Standardization Across the entire value
A holistic, company-wide
High customer and chain allowing real-time
master data concept people centricity decision making. From
across organizational Data to Insight to Action.
boundaries.
While we sometimes seem to focus too much on
organizational changes, or on spending measures to improve our
profitability, our future success will only be determined by the
customer centricity of all we do, what we sell, and how we run.”
Christian Klein, SAP COO
SAP’s Digital Transformation to Run Simple 6
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
The degree of simplification required to meet our customer’s needs can only be achieved
through disruptive process redesign. Think process simplification first and, based on
this, modify the systems and technology base.
BUSINESS PROCESS BUSINESS PROCESS REDESIGN BUSINESS PROCESS
DIAGNOSIS IMPLEMENTATION &
Depending on the result of the
DEPLOYMENT
Understand as-is process and previous phases, chose the right
perform gap analysis with respect mix of methods. • Implement the quick wins in
to expectations. continuous improvement initiatives
Process Steps: • Execute IT roadmap in agile
Process Steps: • Customer centricity: End-to-end approach
• Process workshops with operations user panels to validate processes • Drive deployment & end user
experts across all Lines of Business • Establish a new end-to-end adoption of the new solution by
• End-user feedback sessions via mindset and optimized operating using it in a rapid way
calls and workshops model across the value chain of
• Prioritize the challenges along the the company
end-to-end process • Refocus on end-user experience
• Identify key game changers (long along the customer journey
term) and quick wins (short term) • Develop process & IT roadmap
• Define a vision and roadmap per • Create user stories (Business & IT)
game changer
Transformation Principles
THINK CUSTOMER THINK PROCESS THINK END-TO-END THINK DIGITAL,
OBSESSION NOT REDESIGN FOR NOT FUNCTIONAL NOT TRADITIONAL
INSIDE-OUT RESULTS, NOT
The biggest simplification Rethink traditional
PROCESS SAKE
Assess degree of value potential is in-between processes in the light of
creation for our customers Process redesign has to silos, not in local digital technologies
and end-users to focus on maximizing value optimization
continuously challenge generation and elimination
the status quo of proxies
SAP’s Digital Transformation to Run Simple 7
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Enabling Technology
SAP’s system landscape has been grown over decades with a strong OnPrem core. Over the last
couple of years, we have moved capabilities into the cloud, leveraging acquired assets. That has led to
faster innovation cycles and more process standardization and simplification in commodity areas. In
parallel, we have started to leverage the SAP Cloud Platform to rapidly improve the user experience,
to embed continuous innovations (e.g. Machine Learning) into existing hybrid landscapes and to
leverage it for user-centric differentiating sales apps.
Manage Demand Manage Deal Execution Order-to-Cash Customer Life Cycle
S/4HANA
SAP Hybris SAP Hybris SAP Hybris SAP Hybris SAP Hybris Digital
Commerce Marketing Sales Revenue Cloud Billing Core
Digital Campaign Convergent Customer
Lead Mgmt CPQ
Touchpoints Mgmt Invoicing Service
S/4HANA
Response Universal
Store Oppty Mgmt Order Mgmt FI-CA
Mgmt Ledger
SAP Cloud Platform
SAP Analytics Cloud
Master Data Governance
In order to support emerging business models that development to create a reference architecture valid for
transform SAP into a cloud company (growth) but all customers of similar size and industry. Integration to
at the same time contribute to a massive increase in Cloud “satellites” (Ariba, Concur, FG, SFSF) has already
operational efficiencies (cost savings), we decided not significantly improved, and functional enhancements in
to just convert our ERP system to S/4HANA, but to Finance (Accrual cockpit, Intercompany Billing, Royalties
instead start with a greenfield approach. Led by business Management ) are being co-developed.
process redesign triangulated with S/4HANA application
capabilities, we designed the new digital core for SAP. At SAP, the end goal is to arrive at a service-oriented
architecture with a lean OnPrem Core and connected
The OnPrem core becomes small and further capabilities cloud services that can be flexibly exchanged. This will
move to the cloud, such as salesforce automation, provide agility to support new business or commercial
configure-price-quote and commissions management. models and establish a core that is robust and flexible
In order to standardize and simplify, we work closely enough to carry SAP into the next decade and support
with SAP Product and Innovation Development teams future growth. Plus, we leverage emerging technologies
on functional and integration gaps. We established a co- like Machine Learning within IT specific solutions to
innovation model where IT is driving requirements into create additional business benefits.
SAP’s Digital Transformation to Run Simple 8
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Digital transformation impacts
the entire organization
Managers and employees on every level and in all our business units are facing individual
challenges. Transformation can only be achieved if everyone in the organization is aware of his
or her part in the game—from the board members to each individual employee.
1 2 3
Learn how SAP uses Learn how Marketing at Learn how Sales at SAP
Data Management as the SAP boosts pipeline growth sells more in less time
basis for digital transformation powered by SAP Hybris powered by SAP Hybris
Marketing and Sales
4 5 6
Learn how Finance at SAP Learn how Procurement Learn how SAP simplifies
drives business performance at SAP simplifies Travel and Expense
in the digital world powered processes powered by Management powered by
by S/4HANA SAP Ariba Solutions SAP Concur
7 8 9
Learn how SAP simplifies Learn how HR at SAP Learn how SAP streamlines
External Workforce drives employee engagement Enterprise Analytics to
Management powered by to the next level powered by achieve steering excellence
SAP Fieldglass SAP SuccessFactors in the digital age
SAP’s Digital Transformation to Run Simple 9
© 2017 SAP SE or an SAP affiliate company. All rights reserved.1 2 3 4 5 6 7 8 9
Master Marketing Sales Finance Procurement Travel and External HR Analytics
Data Expense Workforce
Learn how SAP uses Data
Management as the basis for
digital transformation
Data is the foundation of your business. Without it, you’ll have trouble creating anything
of value. To stay competitive and successfully support pipeline growth, you need a well
maintained master data foundation.
Today more than ever, data is growing exponentially. Data is a valuable corporate asset which, when managed
90% of the world’s data has been generated in just properly, can increase efficiency across all Lines of
last 2 years*. The pain that organizations are Business and support a company’s ability to achieve
experiencing around consistent reporting, regulatory strategic goals and financial results.
compliance, and the move towards Software as a Service
(SaaS) offerings is putting enormous pressure on
Enterprise Data Management.
*ScienceDaily
SAP’s Digital Transformation to Run Simple 10
© 2017 SAP SE or an SAP affiliate company. All rights reserved.SAP’s transformation to the Cloud creates new challenges for
Enterprise Data Management. In order to Run Simple we need to:
Standardize and simplify Accelerate business Improve operating Deliver innovative
data processes processes through high margins and internal business and technical
quality master data efficiencies solutions
Enterprise Data Management’s
Challenges
Many areas across the company depend on accurate and consistent Master Data:
HR MARKETING IT
Inconsistent employee information Fragmented and de-centralized High cost of ownership and
and data quality across data prevents marketing operations complex IT operations are
organization and processes. from generating high-value challenging a seamless and
business and reacting to an agile, standardized delivery of
fast-paced market. cloud-based solutions.
SALES DIGITAL OFFICER FINANCE
AE’s are spending a lot of time Accurate budget sizing, No centralized hub to
on sourcing, administration, and driving efficiency measures, manage master data and
qualification of their customer and and improving risk management data quality checks.
opportunity management. is undermined by inconsistent
and decentralized data.
SAP’s Digital Transformation to Run Simple 11
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Enterprise Data Management’s
Transformation Approach
Transforming Master Data Management is a combined effort. To achieve sustainable change,
we need to equally transform our internal processes, the mindsets of our people, and our
technology landscape.
BUSINESS PROCESS PEOPLE TECHNOLOGY
We are leveraging a business-led We are holding a data council with We are using best-in-class SAP
global master data management representatives from each line solutions for enterprise information
and governance program to of business to bring change to management, like SAP Master Data
reduce complexity. everyone’s personal agenda. Governance, SAP Data Services,
SAP Information Steward and
SAP CRM powered by SAP HANA.
How can we provide correct, clean, current data that is easy to access, use, add and update for
fast, accurate results every time?
Customer Vendor
Contacts Finance Partners Employees Products Materials Pricing
Data Suppliers
Quality Checks Governance
Framework
Automate &
Standardize
Business Rules Two-man Rule
SAP’s Digital Transformation to Run Simple 12
© 2017 SAP SE or an SAP affiliate company. All rights reserved.How do we organize Master
Data Management at SAP?
HR MARKETING IT
• Reduce the complexities of • Enable high-volume business, • Reduce total cost of ownership
managing employee job changes maximize generation of and simplify IT operations
(org units, job titles) high-value leads • Agile-based delivery of
• Ensure accurate and timely • Automate, standardize, and Cloud-based solutions
employee information across the simplify marketing operations to • Infrastructure and architecture
organization and processes increase agility and efficiency to support Big Data & IoT
SALES DIGITAL OFFICER FINANCE
• Allow salesforce to spend more • Which information can add • Optimize the data quality checks
time with customers instead of business value, drive efficiency, with data governance products
admin tasks or improve risk management? and tools
• Flexible account planning and • How much budget and • Use one central hub to manage
Go-To-Market model commitment from the business master data using SAP’s Master
• One view of the customer do I need to make my company Data Governance product
regardless of the channel successful?
(online, on-premise)
SAP’s Digital Transformation to Run Simple 13
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Business Benefits realized
€75 MILLION 25,000 €13 MILLION 10%
Benefits through master Hours of increased Saved with better Increase in marketing
data improvements productivity for account contact data productivity through
executives in 2015 continuous data quality
year over year
€960K >97.5% 70%
Annual reduction in IT total of 9 million contacts meet Automated data
cost of ownership standards for overall operation processes
contact completeness
Enabling Technology
CURRENT RECOMMENDED
We can keep adding more 1:1 replications, BUT each Build a scalable and flexible platform based on SAP
system is adding complexity, risk, and cost. HANA that supports Governed Master Data and cross
system Analytics.
SAP’s Digital Transformation to Run Simple 14
© 2017 SAP SE or an SAP affiliate company. All rights reserved.1 2 3 4 5 6 7 8 9
Master Marketing Sales Finance Procurement Travel and External HR Analytics
Data Expense Workforce
Learn how Marketing at SAP
boosts pipeline growth powered
by SAP Hybris
We asked ourselves: Are we running Live in Marketing? What are we doing to transform
Marketing? How can we streamline and simplify our processes along our end-to-end-value chain,
from campaign planning to lead handover?
MARKETING NEEDS TO REACT TO A FAST-CHANGING MARKET:
The customer is in the Data silos are holding Simplification for Volume business
driver’s seat companies back the cloud requires automation
Customer journeys today Real-time analytics is Moving to the cloud drives Automated nurturing
are multi-dimensional required to understand companies to reinvent and lead qualification,
and complex. Customers how customers are how they run. This results as well as a close
determine their own, engaging with us. in a transformation of the collaboration between
unique experience and Therefore customer data IT landscape, a disruptive marketing and sales
demand to be engaged needs to be aggregated process redesign, and enable pipeline growth.
through the channels of across the enterprise. investment in your people.
their choosing.
SAP’s Digital Transformation to Run Simple 15
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Marketing’s Challenges
In order to make life easier for our people, we asked them to give feedback on their personal pain
points throughout the end-to-end marketing process. Based on the feedback we received, we
identified various processes in need of improvement or redesign.
MARKETING'S VALUE CHAIN:
Campaign Campaign Response Scoring & Lead Handover
Nurture
Planning Execution Handling Routing to Sales
Campaign Planning Campaign Execution
Low integration between Marketing High average campaign
and Sales activities preparation time
Response Handling Scoring & Routing
No full view into a customer’sSuboptimal, not intuitive end-user Complexity of external and internal
experience data sources
High number of independent data Historical non-digital ready
sources incl. external sources and optimized master data
management
Third party systems used at
high cost
CIO
GLOBAL CHALLENGES ACROSS THE VALUE CHAIN:
Manual and highly Lacking support of new Low integration between
complex processes business models Marketing and Sales
Lacking analytical capabilities New structures, skillsets,
and data quality issues working models required
SAP’s Digital Transformation to Run Simple 17
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Marketing’s Transformation
Approach
Based on the pain points we identified, we defined a clear transformation vision and
roadmap, including both short-term quick wins as well as long-term game changers.
TODAY TRANSITION TOMORROW
Business • High-touch event-driven • Streamlines processes on • Live Marketing supported by
focus a single platform multichannel digital-driven
• Complex operations with • Centralized data model low-touch volume marketing
highly manual processes enabling B2C scenarios • Simplified Marketing and
and various solutions Sales pipeline processes
delivering efficiency and
governance
Technology • Complex setup with • Reduced complexity / • Live Marketing fully
third party solutions Streamlining of processes cloud-enabled
• High degree of custom and enterprise architecture
development • Marketing Automation
enabled by one central and
integrated platform
• Reduced custom
development
SAP’s Digital Transformation to Run Simple 18
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Marketing’s Business
Benefits
Ultimately our goal is to enable our people to focus on and even scale their daily business
activities while increasing their satisfaction.
MARKETING'S VALUE CHAIN:
Campaign Campaign Response Scoring & Lead Handover
Nurture
Planning Execution Handling Routing to Sales
Campaign Planning Campaign Execution
50% reduction of campaign Global standards on client data
preparation time
Response Handling Scoring & Routing
360° view of all customer Hours vs Days for leads to be routed
interactions and followed-up
MARKETER Nurture Lead Handover to Sales
10 mins from inquiry to initial Simplified Engagement for
response activity improved lead qualification
Campaign Planning Campaign Execution
Transparency on brand value Digital First methodology enabled
by strategic segmentation
Response Handling Scoring & Routing
Real-time, automated tracking of Additional scenarios
demand generation effectiveness (i.e. always on)
CMO
Nurture Lead Handover to Sales
Full-fledged nurture capabilities 40% more leads and improved
available and 92% less response acceptance / pipeline contribution
processing time
SAP’s Digital Transformation to Run Simple 19
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Improved End User Experience with External and internal data
SAP Fiori sources more integrated
(e.g. social channels)
12+ databases retired or SAP teams trained on automation
integrated concepts
Increased usage of SAP Solutions Innovative Technologies integrated
leads to Cost Reduction and co-innovation activities
CIO
GLOBAL BENEFITS ACROSS THE VALUE CHAIN:
One central platform Marketing Successful Close collaboration New structures,
to support end- automation preparation towards between Marketing skillsets, and
to-end processes, increases efficiency Cloud Readiness & Sales with pipeline working models
providing a 360° at lower cost contribution increase established
view of all customer
interactions in
real-time
Enabling Technology
MARKETING SALES
HIGH-
LEVEL
PROCESS Marketing Campaign Response Score Nurture Handover Opportunity Quote Order
Campaign Execution Handling Marketing Management Management Management
Planning to Sales
REPORTING | MANAGEMENT DASHBOARD | OPERATIONAL INTELLIGENCE
As-Is SAP CRM / SAP Hybris Marketing/ non-SAP Solutions
SAP CRM /SAP C4C /Harmony SAP ERP / SAPCRM ECC 6.0/
non-SAP Sol. non-SAP Sol. SAP S/4HANA
To-Be SAP Hybris MarketingCloud SAP Hybris Cloud for Customer Revenue Cloud SAP S/4HANA
SAP’s Digital Transformation to Run Simple 20
© 2017 SAP SE or an SAP affiliate company. All rights reserved.1 2 3 4 5 6 7 8 9
Master Marketing Sales Finance Procurement Travel and External HR Analytics
Data Expense Workforce
Learn how Sales at SAP sells
more in less time powered by
SAP Hybris Marketing and Sales
As Cloud revenue will exceed On-Premise business soon, To keep pace with market trends and our newly arranged
we need to act now! Currently, our process and IT sales pipeline, we need to be quick and courageous
landscape is solely aligned to On-Premise products and as we set up lean processes with quick approvals and
sales. However, as On-Premise increasingly becomes a more specific customer information gathering. We all
thing of the past and as we move towards digital solutions know, Cloud is our future! And Cloud can’t run on old
at high speed, we need to fundamentally modify our transactions. That’s why we need to simplify both our
transactional processes and systems end-to-end. internal transactional set-up and the way we sell Cloud.
New business models, markets, and sales channels are driving SAP’s shareholder value:
2016 2020
Cloud subscription € 2.99 bn +184% € 8.50 bn
Total revenue € 22.07 bn +31% € 29.00 bn
Operating Profit € 6.63 bn € 8.50 bn
New
markets
New sales
channels
Digital
trends
SAP’s Digital Transformation to Run Simple 21
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Sales’ Transformation Approach
How can we reimagine our future while accelerating business today?
BUSINESS PROCESS INSIGHT & MASTER DATA
REDESIGN STANDARDIZATION
PUT PEOPLE & CUSTOMER
stepwise along end-to-end EXPERIENCE AT THE CENTER across countries and
sales process Lines of Business
Key aspects of Sales’ digital transformation:
Omni-channel New business models Cost are immediate, Mindset change of Sales
digital experience margins are tight
New consumption-based Regular recurring
Buying behavior changes. business models need With increasing share of deals are preferred
Upstream digital to be operationalized Cloud revenue, volume in over fewer sporadic
touchpoints (e.g. web for go-to-market (e.g. lower deal size segments large transactions. A
site, demos, trials, stores) pay-per-use, pay-as- grows significantly. tight integration from
and high-touch physical you-go). Acceleration of Recurring revenue in Marketing to Sales and
touchpoints (e.g. sales innovation adoption drives the Cloud is based on a Finance is needed to
rep) are equally important. competition. A smarter different cost structure. drive simplification and
bundling of products and Process costs have high standardization across
services is emerging. impact on margin, hence all deal actions.
automation is essential.
Price = customer value Change in Sales Guided Selling Customer expectation
incentivation and
Pricing model needs to Leverage Machine Value assurance and
compensation
scale directly with the Learning Capabilities adoption is a leading
customer value generated. Customer loyalty and to guide Sales Reps paradigm. Customer
More standardization is renewals as well as new through the deal success needs to be
required to enable scale and upsell bookings are execution with Product ensured to keep loyalty
in the Cloud (no tailored equally important and Recommendations and renewals.
contracts). should be rewarded
accordingly.
SAP’s Digital Transformation to Run Simple 22
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Sales’ process challenges and
desired improvements
How do we become faster and more agile, while enabling new business models and scale across
geographies and businesses? How can we make execution simpler for our sales teams?
SALES’ VALUE CHAIN:
Campaign Lead Opportunity Contract Order Invoice Accounting
Campaign / Lead Quote Contract Order Renewal
TODAY
• No insight in • No low-touch • Long approval • Too many invoices • No standard
campaigns process for chains, limited for one contract process for
• High manual efforts volume business auto approvals • No holistic view on renewals >1BN€
to run campaigns • Complex deal • 50% redlining in customer due to • No active risk
• Lead routing and motions and Cloud contracts multiple orders mitigation
nurturing quoting process • Manual contract • Exponentially • Highly manual
too complex • No Amazon-like creation increasing order XLS-based process
guided selling and invoice volume
Campaign / Lead Quote Contract / Order Renewal
• Expanded marketing • Shortened sales cycles • Reduced approval chains • Automated provisioning
automation capabilities by prefilled, persona through deal health • Renewal@risk process
incl. nurturing, scoring, driven user interface based approval process for higher customer
TOMORROW
and routing • Product and service • Consistent pricing and retention
• Unified lead configuration, guided discounting • Automated renewal
management bridging selling and simplified • Online composition of report to take action
Marketing and Sales pricing modularized legal content
• Digital-ready data model • Unified quoting process, • Consolidated orders and High Customer Retention
tighter integration to invoices through solution
order management contract
Grow Pipeline
• 360° view of customer • Automated order
management
Sell more in less time
Automated F&A processes
generate faster cash
SAP’s Digital Transformation to Run Simple 23
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Benefits of a transformed
Sales organization
BUSINESS PROCESS REDESIGN
5 WEEKS +38% +68%
Reduction in time to market of Revenue coming from Increase in Sales Quota-Carrier
New Business Models Productivity (2012 to 2016)
(Cloud Mix in 2016)
PUT PEOPLE AND CUSTOMER EXPERIENCE AT THE CENTER
+77% >90% OF QUOTA CARRIERS 4X FASTER
of the Deal Execution running on using Harmony Insights in one to execute common deal motion
Mobile device month (Fastest adoption of a activities (e.g. create a quote)
Sales System at SAP ever)
INSIGHT AND MASTER DATA STANDARDIZATION
+28,000 +1.6M VIEWS/HITS 3X
users consuming analytics and of Enterprise Analytics assets more site traffic and insights
insights on SAP HANA (2016) (reports & dashboards) served per year
SAP’s Digital Transformation to Run Simple 24
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Outlook on Sales’
Transformation into
the SAP Cloud
Seamlessly integrated enterprise Sales platform, connecting Marketing, Sales,
and the Backoffice. End-to-End process integration and automation from Campaign to Cash,
enabling low-/ no-touch sales motions including digital commerce.
SAP Fiori to ensure
E2E user experience
S/4HANA
as Digital Core
SAP Hybris Commerce
for SAP’s Digital Store
S/4HANA
SAP Hybris SAP Hybris SAP Hybris SAP Hybris
Marketing Cloud Sales Cloud Revenue Cloud Billing
SAP Cloud Platform
CAMPAIGN LEAD OPPORTUNITY QUOTE CONTRACT ORDER INVOICE ACCOUNTING
SAP’s Digital Transformation to Run Simple 25
© 2017 SAP SE or an SAP affiliate company. All rights reserved.1 2 3 4 5 6 7 8 9
Master Marketing Sales Finance Procurement Travel and External HR Analytics
Data Expense Workforce
Learn how Finance at SAP
drives business performance
in the digital world
powered by S/4HANA
To be honest, life was simpler 15 years ago at SAP. We had a very simple, uniform business model.
We sold the SAP Business Suite with licenses, associated maintenance, and services.
We had a consistent go-to-market strategy, pricing structure, and marketing approach globally,
which allowed us to de-centralize our organizational structure. But times have changed.
New business models Distributed Ledgers Mobile, Internet of Big Data and Machine
Things and Hyper- Learning powered by
enable companies to enable the decentralized,
connectivity In-Memory technologies
explore new markets and secure, direct, digital
grow their business. transfer of values and enable immediate access change how data is being
assets. to every “thing”. analyzed with predictive
analytics.
SAP’s Digital Transformation to Run Simple 26
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Challenges of SAP’s
Finance Organization
SAP’s challenges are twofold—organizational and technological.
One cannot be transformed without the other.
BUSINESS CHALLENGES:
Speed of change Financial Operations Cost Pressure
Finance organizations must cope “Keeping the lights on” with regards Handling tight budgets while being
with the most volatile economic to Compliance, Efficiency, Business able to support the business, the
and regulatory environment in Performance leads to higher lead finance organizations want to
decades. Dynamic markets offer qualification and optimized hand- move to continuously automated
new opportunities which need to be over to sales. Finance’s existing, “lights out” processes, event driven
pursed quickly before they are gone. disconnected, and often manual and networked with compliance
processes are no longer acceptable. embedded into the processes.
Acquisitions & Mergers Inflexible Finance & Increasing
complex processes
Finance is being asked to drive
strategy in a whole new way. Executives and decision makers
After an acquisition, the new entity need to understand the impact of
needs to be integrated into the their decisions before they make
finance processes quickly to realize them with live analysis, predictions,
its full potential. and simulations.
TECHNOLOGY CHALLENGES:
Digital Transformation 20+ year old rigid core ERP system High manual reporting efforts
Bringing in new technologies like System with many modifications
Machine Learning, Distributed and custom reports and
Ledger Technology, etc enhancements
SAP’s Digital Transformation to Run Simple 27
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Finance’s Transformation
Approach
As part of the Top 10 Focus Project “S/4HANA: Renew our Financial Core Project,”
the Finance initiative will support by designing a new Lead-to-Cash process and
system architecture, providing a real-time environment along the steering dimensions
and core processes, and transforming all core processes to one standardized and
unified data architecture for customer, material, and organization.
SUPPORT NEW HIGH-VOLUME COMPLIANCE INTEGRATE ACQUISITIONS
BUSINESS
Ensure volume-readiness and Allowing one single source of truth
Enable transaction-based billing increased automation and by combining legacy ERPs with
and automated collections. Flexibly standardization of Revenue S/4HANA via Central Finance
support new and changing future Accounting processes in the light
business models. of new Accounting Standards
NEW STEERING MODEL SIMPLIFY
Harmonized steering model Setup of a new Chart of Accounts
to gain transparency and efficiency with less accounts, massively
across Line of Businesses and reduced number of cost and profit
product lines to manage growth centers. No modifications to the
and profitability standard system.
TODAY TRANSITION TOMORROW
Business • High touch event-driven • Business process redesign • Move all legal entities to the
focus • New master data concept new S/4HANA system
• Complex operations with with less G/L accounts, cost • Enable low touch business
highly manual processes centers, profit centers models with extremely high
and various process variants • New steering model F&A automation level
• Bad data Quality and definition
manual reporting
Technology • Complex setup • Setup of a greenfield • Shutdown of legacy ERP
• High degree of custom S/4HANA system instance
development • Integrate with Central
• Non-SAP systems used by Finance to the legacy ERP
acquired companies system
SAP’s Digital Transformation to Run Simple 28
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Business Benefits
With our recent technology shift we are now adopting a standardized and automated S/4HANA
Core system. With Business Process Redesign we questioned all our existing processes. While
always having our focus on our end users and our customers, and the business challenges they
are facing, we defined our system landscape accordingly.
Real-time business steering with Agile adaption of order to cash
the Digital Boardroom based on process to support new business
S/4HANA. More accurate prediction models
of business development
End-to-end process coverage with Proactive process & data
integrated business systems reduce monitoring to ensure highest
process costs and increase visibility compliance standards
of process performance.
CFO
Adoption of new IFRS 15 accounting Automated accrual and fixed asset
standards with less booking effort accounting process reduces manual
and less manual checks effort within month/ quarter end
closing
Standardized month/ quarter end Significantly simplified closing
closing processes, automated process with Central Finance
tasks and increased quality with consolidating various ERP
the Financial Closing Cockpit solutions
Data consistency across Finance
and HR by integrating S/4HANA
CORPORATE FINANCIAL
and SucccesFactors. Simplified
REPORTING
and automated bonus and
vacation accrual management
Low Touch Order-to-Cash process Real-time view on order processing
including: volume and critical deals
• automated order management,
• proactive deal health monitoring,
• automated contract handling and
• standardized billing for all deal
motions
COMMERCIAL DEAL
SUPPORT
SAP’s Digital Transformation to Run Simple 29
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Machine Learning capabilities Universal Journal helps to reduce
automate accounts receivables 70% of reconciliation efforts
process matching open invoices to between FI and CO
received customer payments
Faster processing time of ticket
handling as enterprise search
enables smart resolution finding
SHARED SERVICE
CENTER
Planning, Reporting, Simulations, Value driver based financial steering
and Predictive Analytics in ONE concept
system with real-time data, great
visualization, and usability
Direct access to the Universal The Universal Journal supports
Journal with real time information the definition of attributes needed
allow simple and reliable reporting for our new steering dimensions,
as well as the reduction of Profit
Centers from 130k toGLOBAL BENEFITS ACROSS ALL ROLES:
50% 95% 70% +10PP
more time available for reduction of profit reduction of improvement in forecast
high quality deal support centers in new steering reconciliation efforts accuracy
model
50% 5 DAYS 50% 97%
efficiency gain reduction of quarter-end more work time available electronic bank
with Fiori close process including for performance statements automatically
group consolidation management and posted
business partnering
Enabling Technology
SAP S/4HANA as key enabler for SAP to become a Digital Enterprise:
Process Redesign Process Redesign
Starting Point Transition Tomorrow
Legacy ERP with massive complexity The Journey to the New Digital Core The Digital SAP is Cloud Enabled
Ariba Ariba Ariba
Fieldglass Fieldglass Fieldglass
SuccessFactors SuccessFactors SuccessFactors
Concur Concur Concur
SAP CloudPlatform SAP CloudPlatform SAP CloudPlatform
Customer Workforce Customer Workforce
Industry
Experience Engagement
Industry
Experience Engagement
SAP
Legacy ERP Machine
API’s Machine
Learning
Learning API’s
SAP
Blockchain Security
Blockchain Security
IoT & Supply Spend
Aquisitions
Chain Management
IoT & Supply Spend
Chain Management
Non-SAP ERP SAP HANA SAP Cloud Platform
SAP HANA SAP Cloud Platform
Legacy ERP
SAP
SAP’s Digital Transformation to Run Simple 31
© 2017 SAP SE or an SAP affiliate company. All rights reserved.1 2 3 4 5 6 7 8 9
Master Marketing Sales Finance Procurement Travel and External HR Analytics
Data Expense Workforce
Learn how Procurement at SAP
simplifies processes powered by
SAP Ariba Solutions
In a fast growing cloud economy, we need to secure profitability by
transforming our tactical procurement function towards a holistic strategic function.
This transformation comes in four dimensions:
User-friendly Cloud Big Data Advanced Connected Business Learning Systems
Solutions Analytics Networks Artificial Intelligence
Ariba needs to be fully integrated into the global procurement organization:
SAP’s Digital Transformation to Run Simple 32
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Challenges of SAP’s
Procurement Organization
PROCUREMENT'S VALUE CHAIN:
Source and Negotiate Contract and Procure Invoice and Pay Monitor and Manage
Contract and Procure Invoice and Pay
• Too many steps, clicks, windows, • Complex process
and interfaces • Multiple entry points, systems,
• High training need and tools
• Missing mobile solution
Monitor and Manage
• Lack of transparency across
entire process
EMPLOYEE • “Where is the stuff I have
ordered?”
Source and Negotiate Contract and Procure
• Complex discovery, pre- • Unstructured collaboration with
qualification and onboarding suppliers
• Limited competition among • Multiple systems, multiple
suppliers contracts with suppliers
Invoice and Pay Monitor and Manage
• Manual invoicing steps • Limited visibility on purchasing
• High operative workload spend & budget adherence
PURCHASER • Missing entry point to gather
transparency about spend
Source and Negotiate Contract and Procure
• High risk due to lacking supplier • Compliance risks
information
Invoice and Pay Monitor and Manage
• High system and integration • Additional effort to calculate KPI’s
costs
CIO
SAP’s Digital Transformation to Run Simple 33
© 2017 SAP SE or an SAP affiliate company. All rights reserved.GLOBAL CHALLENGES ACROSS ALL ROLES:
Lacking cloud Inefficient Highly complex Lacking Lacking Low customer
capabilities source-to-pay manual collaboration monitoring satisfaction
process processes with suppliers capabilities
Transformation Approach
How can we help deliver double-digit cost reduction while at the same time improving
our reputation as a function that delivers value beyond cost cutting?
Take end-to-end process Leverage purchasing Deliver best-in-class Be a value enabler
responsibility power procurement processes
to our Businesses and
for all parties involved in and drive sustainable and highest possible a fair partner to our
the entire source-to-pay savings across all service levels to internal suppliers
process geographies customers
SAP’s Digital Transformation to Run Simple 34
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Benefits of SAP’s
Procurement Organization
PROCUREMENT'S VALUE CHAIN:
Source and Negotiate Contract and Procure Invoice and Pay Monitor and Manage
Contract and Procure Invoice and Pay
• Amazon-like buying experience • One single point of entry
with Guided Buying
• One-Stop-Shop incl. Spot Buy
• Zero-training required
Monitor and Manage
• Mobile end-to-end visibility into
the whole purchasing lifecycle
EMPLOYEE • Quickly get the goods &
services they need
Source and Negotiate Contract and Procure
• Quick and easy supplier • Advanced collaboration
discovery, pre-qualification capabilities with suppliers
and onboarding • Consolidation of contracts
• Efficiency and cost savings drives cost savings
with online bidding • Incorporating contracts into
purchasing and invoicing
drives compliance
PURCHASER Invoice and Pay Monitor and Manage
• 60% increase in invoice • Dashboards and reports provide
automation complete visibility into spend
• Reduced operative workload and risks
• Accurate real-time budget
visibility through deep integration
with S/4HANA
SAP’s Digital Transformation to Run Simple 35
© 2017 SAP SE or an SAP affiliate company. All rights reserved.• Lower risk with up-to-date • Lower TCO – Fully integrated
supplier information Cloud solution into S/4HANA
• Improve control and compliance • Out-tasked infrastructure for
with integrated contract supplier collaboration to one EDI
manager
• Integrated supplier lifecycle and
performance management
CIO
GLOBAL BENEFITS ACROSS ALL ROLES:
6-DIGIT € 96% 50% 6,300+ Largest Business
savings through invoice quality manual invoices suppliers enabled Network with 2.5+M
cloud-based delivery eliminated partners
Enabling Technology
S/4HANA centric application landscape seamlessly intergrated enterprise
end-to-end purchasing processes:
SAP’s Digital Transformation to Run Simple 36
© 2017 SAP SE or an SAP affiliate company. All rights reserved.1 2 3 4 5 6 7 8 9
Master Marketing Sales Finance Procurement Travel and External HR Analytics
Data Expense Workforce
Learn how SAP simplifies
Travel and Expense Management
powered by SAP Concur
Frequent business travel is exhausting. What makes it even worse is the fact that once
you return home, the journey doesn't end there. At SAP we noticed that our people were having a
hard time claiming their travel expenses—so we started brainstorming ways to make life easier for
them. One important step was moving the entire booking to reimbursement process to the cloud.
Advantage of cloud based travel and expense management:
End-user GPO Technology
Direct and mobile access to T&E Standardized and compliant E2E Applications are seamlessly
management with immediate processing of travel and expense integrated into the Digital Core
processing and minimum effort requests with low-touch monitoring and can be hosted efficiently
and reporting
Concur Travel and Expense Management needs to be fully integrated
into the global procurement organization:
SAP’s Digital Transformation to Run Simple 37
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Challenges of SAP’s
Travel & Expense Management
TRAVEL & EXPENSE MANAGEMENT’S VALUE CHAIN:
Execute Pre Trip Execute On Trip Claim Audit and Reimburse
Activities Activities Expenses Monitor Expenses
Execute Pre Trip Activities Execute On Trip Activities
• Multiple places & systems to • Manual handling of
search for information itinerary changes
• Lack of information
• Missing mobile solution
Claim Expenses Audit and Monitor
• Not intuitive UI, too many steps • Missing transparency
• No mobile expense claims
EMPLOYEE ”on the go”
Reimburse Expenses
• Information not clear
• Long cycle time for the
overall process
Execute Pre Trip Activities Execute On Trip Activities
• Missing standardization causes • Missing standardization
additional effort to support • Limited reporting on preferred
multiple travel scenarios travel behavior
Claim Expenses Audit and Monitor
• Missing standardization • Multiple systems to operate
• High operative workload • Complex process
• Compliance Issues
SHARED SERVICE
CENTER Reimburse Expenses
• Missing transparency
SAP’s Digital Transformation to Run Simple 38
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Execute Pre Trip Activities Claim Expenses
• Limited reporting on booking • Missing transparency across
behavior and expense correlation complete process
• Compliance risks
Audit and Monitor Reimburse Expenses
• Insufficient transparency on • Highly manual error-prone
T&E costs efforts
CFO
GLOBAL CHALLENGES ACROSS THE VALUE CHAIN:
No end-to-end Missing Complex custom Complex booking Missing mobile Non-intuitive
travel experience efficiency build processes experience capabilities interfaces
Transformation Approach
The journey to digital transformation starts by empowering every employee to make
good business decisions. One important piece in this puzzle is providing full transparency
on expenses, and to be able to manage it proactively—with the click of a button.
Integrated booking tool Mobility included Cloud solution
Handle the entire end-to-end T&E Claim expenses on the go Applications are seamlessly
process from pre trip bookings to with one intuitive, easy to use integrated into the Digital Core,
reimbursement with one tool mobile interface assuring compliance
SAP’s Digital Transformation to Run Simple 39
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Benefits of SAP’s
Travel & Expense Management
TRAVEL & EXPENSE MANAGEMENT’S VALUE CHAIN:
Execute Pre Trip Execute On Trip Claim Audit and Reimburse
Activities Activities Expenses Monitor Expenses
Execute Pre Trip Activities Execute On Trip Activities
• E-receipts & card integration • Electronic receipt capture
reduce manual efforts via mobile
• Full integration of booking tools • Itinerary changes reflected
immediately
Claim Expenses Audit and Monitor
• Mobile & web-based UIs • Transparency across
• User-friendly and intuitive complete process
EMPLOYEE • Expense data flows automatically
into Concur
Reimburse Expenses
• Transparency on process
• Quick reimbursement due to
streamlined processes
Execute Pre Trip Activities Execute On Trip Activities
• Standardized processes to • Standardized processes
simplify support to traveler • Enhanced reporting on
travel behavior
Claim Expenses Audit and Monitor
• Reduced efforts due to system- • Single system to operate
enforced policy compliance • Built-in compliance
• Single system to operate • Better scale through
SHARED SERVICE sampling checks
CENTER
Reimburse Expenses
• Transparency across
complete process
SAP’s Digital Transformation to Run Simple 40
© 2017 SAP SE or an SAP affiliate company. All rights reserved.Execute Pre Trip Activities Claim Expenses
• Enhanced reporting on booking • Transparency on the overall
behavior and expense correlation process to ensure consistency
and compliance
Audit and Monitor Reimburse Expenses
• Analyze company wide • Reduced error handling
travel behavior complete process
• Reporting on cost optimization
CFO measures
• Highest security standards
(ISO, SOC/SSAE16, PCI)
GLOBAL BENEFITS ACROSS THE VALUE CHAIN:
End-to-end Increased Globalized Simplified Create / capture 85% user
travel experience efficiency in T&E best practice travel booking expenses on satisfaction
management processes experience via mobile devices
mobile
Enabling Technology
S/4HANA-centric application landscape seamlessly intergrates enterprise
end-to-end purchasing processes:
SAP’s Digital Transformation to Run Simple 41
© 2017 SAP SE or an SAP affiliate company. All rights reserved.1 2 3 4 5 6 7 8 9
Master Marketing Sales Finance Procurement Travel and External HR Analytics
Data Expense Workforce
Learn how SAP simplifies
External Workforce Management
powered by SAP Fieldglass
External Workforce management is undergoing a significant transformation:
Growing government Increasing demand to Increasing demand for Usability & simplicity
regulations for external manage external self-service capabilities have become critical
workforce management workers end-to-end success factors
Growing significance
of mobile devices for
business applications
Managing the External Workforce requires a cloud-based, easy-to-use, mobile solution that offers
full end-to-end transparency. In order to achieve that, SAP Fieldglass needs to be fully integrated
into the global procurement organization:
SAP’s Digital Transformation to Run Simple 42
© 2017 SAP SE or an SAP affiliate company. All rights reserved.You can also read
