Post on 02-Aug-2020
Executive Summary | New Reality | SAP Is Here to Help | Customers Respond Using Technology | Our Commitment
© 2020 SAP SE or an SAP affiliate company. All rights reserved. 1
Supporting IM&C in Times of
COVID-19#SAPHereToHelp
SAP is here to offer assistance aligned to your most pressing areas where possible.
If anything is needed during this time, please do not hesitate to get in contact with us .or go
to SAP.com for IM&C.
Executive Summary | New Reality | SAP Is Here to Help | Customers Respond Using Technology | Our Commitment
© 2020 SAP SE or an SAP affiliate company. All rights reserved. 2
The COVID-19 outbreak is a black swan event impacting mankind’s existence, societal behavioural shift, businesses and global economies at large. The COVID-19
outbreak is a “black swan” event impacting mankind’s existence. It is affecting businesses and global economies at large and has produced a societal behavioral shift.
While governments and health institutions are working tirelessly to control the outbreak, manufacturing companies need to pro tect their employees, monitor leading
indicators for planning, start thinking about the next horizons for recovery, and plan for the next phase.
Here are some of the key challenges that companies like yours might be facing. SAP is here to offer assistance during this time of uncertainty, to help you respond to
immediate challenges and also prepare for recovery and reimagine readiness for the future.
Workforce
Protection and
Changing Needs
Customer
Experience and
Engagement
Supply Network,
Manufacturing and Logistics
Stabilization
• Top-line and bottom-line impact
• Communication with customers now
critical; manufacturers needing to rapidly adjust their messages during critical times
• Lack of digital selling and service
capabilities hindering engagement and revenue opportunities
• Changing customer priorities, as
customers expect manufacturers to understand their needs and deliver an even greater experience
• Cuts in customer spending
impacting order backlog and order prioritization
• Scheduled services postponed or canceled, impacting expected
services revenues
• Negative impact on employee
engagement index and workforce productivity
• Need to automate routine tasks for enhanced productivity
• Need for regular communication
and pulse checks with employees, customers, and suppliers
• Higher costs, missed order deliveries,
and cash flow challenges due to disrupted supply networks, logistics bottlenecks, and manufacturing delays
• Volatile demand for usual and
exceptional products, making it difficult to plan when to ramp up production and order parts and components
• Supplier risk for order forecasts,
production, and inventory leading to multiechelon inventory shortages
Business Operations
and Financial Stress
Testing
• Estimated decline in average stock
price by 30% to 40%
• Severe impact on working capital, cash flow, and reserves
• Companies forced to lay off employees due to economic
conditions
• Disruptions in supply chain and
manufacturing hubs (China, rest of Asia, Europe and United States) despite public health and governmental lockdown efforts
to combat COVID-19’s worldwide spread
• Limited abilities to shift between partners due to supply chain and manufacturing complexities
• Shop floor disruptions due to labor
shortages, and inability to higher more contingent workers within social distancing guidelines
IM&C Manufacturing Companies Experience Extensive Disruption
• Sharp decline in market capitalization
of several industry sectors, impacting IM&C companies’ business
• Exposure of vulnerabilities in business operations revealed
• Declining sales, supply chain and
production disruption (in China, rest of Asia, EU) amplifying the economic impact despite ongoing efforts from
central banks
Current Situation
Impact
• Sudden shift to remote work
without adequate preparation
• Rush to make working arrangements with flexible schedule and a supporting IT
infrastructure (laptops, desktops, broadband, VPN)
• Inadequate regular health and safety policy actions with incident
prevention and response
Executive Summary | New Reality | SAP Is Here to Help | Customers Respond Using Technology | Our Commitment
Executive Summary | New Reality | SAP Is Here to Help | Customers Respond Using Technology | Our Commitment
© 2020 SAP SE or an SAP affiliate company. All rights reserved. 3
SAP Is Here to Help You Respond to Immediate
Challenges and Prepare for the Future
Improve Customer
Experience and
Management
Stabilize Supply
Network, Manufacturing,
and Logistics
Support Business
Operations and
Financial Stress Testing
Enable Workforce
Protection and Meet
Changing Needs
3©2020 SAP SE or an SAP affiliate company. All rights reserved.
Executive Summary | New Reality | SAP Is Here to Help | Customers Respond Using Technology | Our Commitment
Executive Summary | New Reality | SAP Is Here to Help | Customers Respond Using Technology | Our Commitment
© 2020 SAP SE or an SAP affiliate company. All rights reserved. 4
SAP Is Here to Help
Enable Workforce Protection and Meet Changing Needs
Prepare for Recovery• Provide total workforce visibility and recruit and onboard contingent labor with the SAP Fieldglass® Worker
Profile Management application.
• Automate and expedite the entire process of procuring and managing flexible continent workforce with the SAP Fieldglass Contingent Workforce Management application.
• Define health surveillance protocols with SAP EHS Management for SAP S/4HANA®, occupational health.
• Actively track occupational health history of workforce, after COVID-19, for employees to feel safe at workplace
and drive risk-based health process with SAP EHS Management for SAP S/4HANA, occupational health.
Reimagine Readiness in the Future• In the next normal, expect to see enterprise-wide flexible employment contracts at scale and more opportunities
for remote working, which will allow better leveraging of the global talent pool and a need to improve employee
communication.
• Repurpose existing workforce talent and skill sets to face the digital transformation of the manufacturing industry with SAP SuccessFactors®, SAP Fieldglass and SAP Enable Now solutions.
• Provide fast and frequent employee well-being check-in and feedback to measure areas of concern with Qualtrics EmployeeXM solutions.
• Benchmark business travel efforts and curb nonessential travel in the future.
Situation
• The employee engagement index is impacted.
• Workforce productivity issues are driving the need for automation.
• Continued communication with employees, customer, and suppliers has become increasingly important.
SAP Is Here to Help
* Free offers are time bound, please review the validity4
©2020 SAP SE or an SAP affiliate company. All rights reserved.
Respond Quickly• Review and act on organization readiness for remote work, assess workforce morale and well being
and understand potential implications for culture, productivity, and the business overall with the Qualtrics® Remote Work
Pulse solution.*
• Additionally, transition to remote work with a readiness and productivity academy for teams, leaders, and employees
with SAP® Litmos® solutions.*
• Learning is critical during these challenging times. Access innovative, interactive education content with SAP’s new
digital learning initiative with the openSAP platform.
Executive Summary | New Reality | SAP Is Here to Help | Customers Respond Using Technology | Our Commitment
© 2020 SAP SE or an SAP affiliate company. All rights reserved. 5
Improve Customer Experience and Management
SAP Is Here to Help
Situation
• Both the top line and bottom line are impacted.
• Scenario-based risk communication is needed.
• Lack of digital selling and service capabilities hinder engagement and revenue opportunities.
• Manufacturing must be reoriented for exceptional products.
SAP Is Here to Help
Prepare for Recovery• Manage customer sales, installation, and service order backlog prioritization utilizing SAP Sales Cloud and SAP Service Cloud solutions.
• Generate new leads through predictive product replacement and precise segmentation using SAP Marketing Cloud and SAP Sales Cloud.
• Accelerate the shift to e-commerce with anticipated online sales volume utilizing SAP Commerce Cloud, and enhance digital channel
experience for customers with Qualtrics Digital Customer Experience solutions.
• Ability to conduct remote service based on equipment usage and performance using SAP Intelligent Asset Management and SAP Service
Cloud.
• Avoid further service delays by optimizing spare parts management and technician sourcing for field service management with SAP
Service Cloud.
• Manufacturing enterprises have to shift from selling physical products to providing solution. Utilize SAP Customer Experience solutions to
simplify the transition.
Reimagine Readiness in the Future• Manufacturing enterprises have to shift from selling physical products to providing performance-driven or outcome-driven business – it’s
all about sharing business risk. Partner with SAP for an integrated solution for digitally executing end-to-end processes of “pay-for-
outcome” business.
• Combine asset-centric view and 360-degree customer view using SAP Customer Experience and SAP Intelligent Asset Management, to
accelerate implementation of true omnichannel customer experience sales and service platform, by building a connected digital customer
journey based on empathy and trust. SAP C/4HANA® suite
• Microtarget customer base with emphasis on long-term value customers using SAP Marketing Cloud.
Respond Quickly• Monitor customer expectations and capture feedback in real time with the Qualtrics COVID-19 Customer Confidence
Pulse solution.* It is a prebuilt solution that helps organizations know what to stop, start, and continue to maintain
strong relationships with customers and ensure business continuity.
• Personalize marketing and sales across channels and segment customers with sophistication to focus on critical
segments based on lifetime value with the SAP Marketing Cloud and SAP Sales Cloud solutions.
• Adjust orders with greater flexibility based on customer priorities and criticality with the SAP S/4HANA solution for
advanced available-to-promise.
* Free offers are time bound, please review the validity5
©2020 SAP SE or an SAP affiliate company. All rights reserved.
Executive Summary | New Reality | SAP Is Here to Help | Customers Respond Using Technology | Our Commitment
© 2020 SAP SE or an SAP affiliate company. All rights reserved. 6
Stabilize Supply Network, Manufacturing, and Logistics
Prepare for Recovery• Accelerate detection, analysis, scenario planning, and action with exception management through network of suppliers, partners, and customers to predict and mitigate bottlenecks
utilizing SAP Supply Chain Control Tower.
• Speed up the sourcing process by engaging with suppliers that are already part of Ariba Network to collaborate and build resilient buyer-seller network.
• Demand-driven material requirements planning and allocation of material supplies to customers, based on prioritization while maintaining cash flow, can be achieved using the SAP
Integrated Business Planning for Supply Chain solution.
• Diversify supply chain and critical suppliers to different geographic locations and implement better forecast, production, and inventory collaboration using the SAP Ariba Supply
Chain Collaboration for Buyers solution.
• Utilize the SAP Enterprise Portfolio and Project Management package to revisit and reprioritize backlog of innovation portfolio to push for early release of digital capabilities, in turn
also enabling end-to-end solution offerings.
• Manage freight collaboration with logistics networks to reduce capacity constraints and freight costs using SAP Logistics Business Network during recovery.
Reimagine Readiness in the Future• Embrace SAP technology to create a digital twin for business including changing data points during manufacturing and installation as well as operational performance issues.
• Invest in right-shoring strategies, which translate into increasing local production and sourcing to minimize supply chain disruption with SAP Digital Supply Chain solutions.
• Leverage the value of predictive supply chain analytics to face future disruption with minimum impact with SAP Ariba Supply Chain Collaboration for Buyers and SAP Integrated
Business Planning for Supply Chain.
• Automate warehouses, manufacturing facilities, and supply chain processes while relying more on decision-making processes supported by analytical tools, artificial intelligence,
and machine learning to be better prepared to face times of high volatility.
• Manage all categories of spend using network and spend management capabilities with stronger supply chain network resilience in long-term to manage the next disruption.
6
SAP Is Here to Help
©2020 SAP SE or an SAP affiliate company. All rights reserved.
Situation
• Planning is difficult – it’s hard to know when to ramp up production and order parts and components.
• Companies are looking to hire contingent workers.
• Supplier risk for order forecasts, production, and inventory leads to multiechelon inventory shortages.
• Suppliers are exposed to risk of recovery time for “mission-critical” business processes.
Respond Quickly• Post sourcing needs and get quick responses from suppliers who can deliver – from all across the world – with the SAP
Ariba® Discovery solution.*
• Monitor, measure, and respond to internal and external disruptions in supply chain, and evaluate supply options and
financial implications with SAP Supply Chain Planning as a Service* for Partners.
• Understand whether suppliers expect to meet delivery timelines and identify areas to optimize business continuity and
recovery plans with the Qualtrics Supply Continuity Pulse solution.*
• Flexibly plan and repurpose some existing manufacturing lines to produce special healthcare products for outbreak control
by using SAP S/4HANA or SAP ERP and the SAP Digital Manufacturing Cloud solutions.
• Accelerate engineering change collaboration and production planning and scheduling of original equipment with
component substitution from alternative suppliers, due to shortages or logistical disruptions, using existing capabilities in
the SAP S/4HANA Manufacturing and SAP Intelligent Product Design solutions.
SAP Is Here to Help
* Free offers are time bound, please review the validity
Executive Summary | New Reality | SAP Is Here to Help | Customers Respond Using Technology | Our Commitment
© 2020 SAP SE or an SAP affiliate company. All rights reserved. 77
©2020 SAP SE or an SAP affiliate company. All rights reserved.
Support Business Operations and Financial Stress Testing
Prepare for Recovery• Perform company-wide financial scenario planning, sensitivity and ratio analysis, examining the overall threat to the organization
and determine actions to reduce further losses using the SAP Analytics Cloud for planning solution and the SAP Business Planning
and Consolidation application can help to identify and prioritize your risk and exposure.
• Analyze business process performance to achieve real process improvement with the SAP Process Mining application by Celonis.
• Improve central cash flow forecasts and track key liquidity and treasury KPIs using SAP Cash Management together with SAP
Treasury and Risk Management.
• Execute higher volumes of repetitive processes during recovery with automation, like matching payments with open receivables and
clear payments, by creating scheduling, managing, and monitoring through intelligent bots with SAP Intelligent RPA.
Reimagine Readiness in the Future• Create a task force to serve as the central decision-making body to address financial and operational strategies with financial
planning and analysis solutions from SAP.
• Lower operational costs and increase productivity by adopting hyper-automation of business processes through the use of SAP
Intelligent RPA.
• Implement Industry 4.0 strategies to help transform the core business and get ready to focus on innovation, deliver experience
outcomes, embrace digital workforce and rearchitect suppliers, distributors and customers ecosystem
• Expand products and solution portfolio into new geographies and new markets to support business pivoting and agility.
• Consider moving appropriate applications and decision support systems to the cloud to enhance ability not only to manage through
difficult times but also to improve innovation, compliance, and security. Packaged options for SAP Cash Management and SAP
Treasury and Risk Management
SAP Is Here to Help
Situation
• Supply chain cause-and-effect dynamics can take weeks if not months to play out.
• There are higher costs to source, make, and deliver material, impacting bottom-line savings.
Respond Quickly• Build, automate, and execute intelligent processes on top of existing architecture without investing in coding with the Ruum
by SAP™ solution.
• Understand the impact of liquidity shortages and take necessary actions to unlock working capital with the SAP Cash
Management application together with the SAP Treasury and Risk Management application.
• Automate repetitive processes like creating purchase requisitions or inbound delivery from delivery notes received via e-
mail by scheduling, managing, and monitoring through intelligent bots from the SAP Intelligent Robotic Process Automation
(RPA) services.
SAP Is Here to Help
Executive Summary | New Reality | SAP Is Here to Help | Customers Respond Using Technology | Our Commitment
© 2020 SAP SE or an SAP affiliate company. All rights reserved. 8
Our Commitment to Our
Customers and Employees
For all of us at SAP, our vision to help the world run better and improve people’s lives has never
been more important than in this current moment. We remain focused on our people, our
customers, and our communities. Together, we will persevere.Christian Klein, CEO, SAP
SAP business, support, and cloud delivery teams have developed and documented business continuity plans
while safeguarding the health of our employees and
minimizing the impact on delivery of services to you.
• Working remotelyMajority of teams connect remotely through secure
connections
• Safety on-site
Required teams spend minimum time on-site, rotate schedules, and use safety equipment including
disinfectant protocols and minimized access
• Suppliers
Stay in contact to ensure comparable mitigation practices, documentation of COVID-19 protocols,
and maintenance of feedback and updates
We established a global pandemic task force, working
with local crisis teams and health authorities. Actions
include:
• Majority of SAP employees now working remotely
• Initiating split-team options and select staff
segregation for business-critical roles/functions
• Cancellation or postponement of physical events
planned for March through June; virtual events where
possible
• Restricting all employee travel, exceptions
determined by SAP management
• Only business-critical travel
Company Assurance for Our Customers Company Guidance for Employees
8©2020 SAP SE or an SAP affiliate company. All rights reserved.
Executive Summary | New Reality | SAP Is Here to Help | Customers Respond Using Technology | Our Commitment
Executive Summary | New Reality | SAP Is Here to Help | Customers Respond Using Technology | Our Commitment
© 2020 SAP SE or an SAP affiliate company. All rights reserved. 9
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