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-1- SAP Digital Automotive © 2017 SAP SE or an SAP affiliate company. All rights reserved. Digital Disruption Transforming the Automotive Ecosystem

Transcript of Digital Paper and Packaginga248.g.akamai.net/n/248/420835/e9133a613a465f3dea9... · The Digital...

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- 1 -SAP Digital Automotive © 2017 SAP SE or an SAP affiliate company. All rights reserved.

Digital DisruptionTransformingthe Automotive Ecosystem

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- 2 -SAP Digital Automotive © 2017 SAP SE or an SAP affiliate company. All rights reserved.

Dear Reader,

Digital disruption is happening everywhere. Companies are either disrupting or being disrupted. Every company needs to digitally transform itself, not only to survive the disruption but also to thrive with the new opportunities created by digital disruption.

The automotive industry is no exception to what is also called the “fourth technological revolution.” Traditional boundaries between high tech, retail, telecommunications, utilities, municipal services, and automotive begin to blur, and we see a new ecosystem emerging. Improvements in mobile and sensor technology, vehicle connectivity, e-mobility, ride sharing, pay-as-you-go services, autonomous driving, and blockchain transform a traditional, vertically integrated industry into a complex and interconnected value network – a fertile breeding ground for new, disruptive business models where technology powerhouses and startups are in a race to scale and challenge the incumbents on multiple levels.

These are truly exciting times of change. I believe that technological advancements will not only provide low-emission mobility to many more people around the globe. These innovations will also offer tremendous business opportunities for those OEMs, suppliers, and service providers that will adopt new technologies.

Fundamental transformation is ubiquitous in this increasingly more complex, more competitive environment. The most successful companies are those that are not content to simply do things incrementally better. The market rewards those that find innovative ways to do things in a fundamentally different way. In working with leading companies across the globe, we see investments and energy around five strategic priorities:

• Smart products

• Digital supply chain and connected manufacturing

• Engagement with a changing workforce

• Customer centricity

• New business models and mobility services

At SAP, we thrive in being on the forefront of change. For more than 40 years, we have served companies and organizations across multiple industries in an effort to make them more successful. From rich, global enterprise business applications and powerful analytics to our SAP® Leonardo innovation portfolio, we see ourselves as an integral part of this latest technological revolution.

This white paper explains how SAP technology can help our customers and ecosystem partners to both improve the performance of today’s business models and to enable innovation for the newer and bigger business models of the future.

Let’s innovate the future – together.

Uli MuenchGlobal Vice PresidentAutomotiveSAP SE

“Technology-driven transformation provides exciting opportunities to automotive companies and service providers that are fast, agile, and innovative.”

Uli MuenchGlobal Vice President AutomotiveSAP SE

ULI’S POINT OF VIEW

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- 3 -SAP Digital Automotive © 2017 SAP SE or an SAP affiliate company. All rights reserved.

TABLE OF CONTENTS

The Digital Economy 4

4The Big Picture

5The Future

Reimagine 6

7Reimagine Business Models

9Reimagine Business Processes

10Reimagine Work

SAP Digital Transformation Framework 11

12Portfolio of Solutions for the Automotive Industry from SAP

14Five Pillars

15SAP Digital Transformation Framework

16How Does It All Come Together?

From Your Current State to Digital 17

18Transforming from Your Current State to Digital

19SAP Digital Business Services

20Our Comprehensive SAP Ecosystem

Why SAP 21

Resources 23

8Reimagine Everything

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Vehicle hardware Vehicle software Alternative business models

Adapted from “How the convergence of automotive and tech will create a new ecosystem,” McKinsey & Company , November 2016

Enterprise ConnectivityConnectivity to business

systems such as warehouse

and transportation manage-

ment, fleet operations, and

so on

Entertainment platformFeatures and connectivity

mirroring the home-entertainment

experience

Apps and servicesFull library of applications from

3rd parties

Data analyticsFully connected cloud processing

and data feeds for manufacturers

Alternative business modelsAutonomous vehicle sharing, new

services offerings, and so on

Autonomous drive/

operating systemAdvanced central operating

system with self-driving

capability

HardwareCorner modules, advanced

sensors, and so on

DrivetrainElectric motors, advanced

batteries, and so on

Industrial designModular bodies,

advanced user

interfaces

THE DIGITAL ECONOMY

The Big Picture: The automotive ecosystem faces disruption unseen since the industrial revolution.

Technology trends change everything

At no time in history since handcrafted coach building yielded to the innovation of mass-production have automotive companies faced the disruptive forces that new technology is introducing to the industry.

• Artificial intelligence

• Real-time computing

• Mobility

• Ubiquitous connectivity

These trends open up new and exciting opportunities. However, they are also opening the opportunities for companies from outside the automotive sector with different expertise and operating models to present challenges for traditional automotive players.

Digitally connected enterprise mobility

A recent McKinsey article1 highlights how these new technologies, combined within the vehicles, and changing customer expectations are threatening to radically reshape the role of traditional automotive companies.

Access more information on the

latest software in the SAP for Automotive

solution portfolio here:

Digital is disruptive. Leaders are rapidly changing.

• Harley-Davidson Inc., maker of iconic motorcycles, has dramatically transformed its manufacturing, shedding decades-old methods – implementing flexible, digitally connected processes enabling the company to build more bikes and more models with better quality at lower cost.2

• STILL GmbH, a top supplier of forklift trucks, platform trucks, and logistics systems, is prototyping the CubeXX, a driverless vehicle equipped with the latest sensor and scanning technology that connects to STILL’s customers’ warehouse systems, enabling new business models such as logistics operations and transport as a service.3

• Bosch, for more than a century, has used its engineering and electronics expertise to supply automotive, construction, and industrial products across the globe. Now the company is transforming itself to be at the center of every Internet of Things (IoT)–enabled solution, combining products, software, and connectivity.4

• Automotive Resources International (ARI), the world’s largest privately owned fleet management services company, collects and analyzes thousands of data elements per vehicle, tracking maintenance, fuel use, licensing, driver behavior, and more – delivering fast, actionable information to help customers save money, build revenue, and improve productivity.5

Automotive companies face the daunting challenge of needing to sharpen the core competencies that enable success today, while reshaping their ability to increase the pace and investment in innovation, integrate with technology partners, and radically transform their interaction with end consumers of mobility and transportation.

Successfully embracing the opportunities offered by new technologies and consequently implementing the right business initiatives will be the foundation of staying relevant in the future of the automotive industry.

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- 5 -SAP Digital Automotive © 2017 SAP SE or an SAP affiliate company. All rights reserved.

THE DIGITAL ECONOMY

The Future: Priorities for automotive

Successfully embracing the opportunities from new technologies and consequently addressing these five strategic priorities will be the foundation of successful digitalization and staying ahead of the innovation curve.

Reimagining

But how do you achieve these strategic priorities? The starting point of the digital journey is the ability to reimagine your business together with customers. That means reimagining your business models, your products, your business processes, and your work. The potential is huge.

Strategic priorities for automotive companies

In this situation, where the opportunity is huge but new market entrants are threatening traditional automotive companies, it is essential to focus on the right strategic priorities to drive digitalization across the business. In working with leading companies across the globe, we see investments and energy around five strategic priorities:

1. Smart productsThroughout the value chain, companies are designing and developing new innovations that combine physical product with embedded sensors and software, introducing capabilities and value beyond traditional components, vehicle systems, and all types of vehicles – and developing the capabilities to support the lifecycle of the products while in service.

2. Digital supply chain and connected manufacturingDigital technology on the shop floor and in the supply chain is not new. What is new is the way the entire value chain is intelligently connected to the rest of the business and is able to deal with external impulses such as short-term demand and supply fluctuations or changes in configuration that require different materials, parts, and operations.

3. Engaging a changing workforceTwo trends are dramatically reshaping the automotive workforce. The demographic-driven shift from boomers to millennials is requiring new approaches for maintaining and developing the skills of a younger workforce with different experience levels, skill levels, and expectations about technology in the workplace. The shift in focus from physical products to smart products requires a new type of worker with skills in software development, data science, and artificial intelligence, forcing companies to compete for talent with the likes of Google, Apple, and Facebook.

4. Customer centricityAs the market is disrupted and constantly shifting, putting your customers at the center of your business – from the end-customer’s point of view – is an imperative. Transformation not only of the buying experience but also of the customer’s experience throughout the entire lifecycle of the relationship strengthens brand loyalty, promotes customer retention, and can give you key insights into the market’s next move.

5. New business models and mobility servicesBy 2030, it is projected that as much as 22% of automotive-related revenue will be derived from shared mobility, transportation as a service, and other digital services related to automotive.6 Suppliers, vehicle OEMs, dealers, and aftermarket retailers are exploiting new, connected technologies to open up new business models and explore new possibilities for monetizing and offering innovative services.

US$100 billionAutomakers spend globally each year on R&D9

85%Of service parts suppliers will incorporate 3D printing into their business in the next five years10

80%Of innovations in automotive engineering are now driven by microelectronics and software7

US$6.7 trillionEstimated sales of the global automotive industry by 20308

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- 6 -SAP Digital Automotive © 2017 SAP SE or an SAP affiliate company. All rights reserved.

REIMAGINE

THE DIGITAL ECONOMY OFFERS INFINITE OPPORTUNITIES

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In a connected world where every company is becoming a technology company, smarter products and services will refocus commerce on business outcomes and consumer convenience and blur industry lines.

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Enterprise mobility, vehicle and business networks, and focus on customer experience and monetization disrupt established business models in the automotive ecosystem. Carmakers and service providers will continue to drive consumption-based business models on top of traditional ownership-based models.

Enterprise mobility as a service

Fueled by technological advancement and changing consumer expectations, the automotive industry is redefining traditional vehicle ownership models and extending offerings with a new enterprise mobility service model.

• Intelligent and agile transportation networks have changed the concept of enterprise mobility and have defined new ways of commuting for short and long hauls.

• Car-sharing and ride-sharing service models offer a sustainable, customer-centric, and economic alternative, especially in the metropolitan areas.

• Connectivity and on-demand service models enable pay-as-you-use business models.

• Changing customer expectations require the enterprise mobility experience to be extended by tailored, customer-centric, commercial offerings

Monetization of connected vehiclesConnected vehicles generate a huge amount of data (telematics and user data) that is hardly monetized as of today (data as a service). Dongle-based and embedded aftermarket solutions will boost the adoption of connected services, such as smart parking, pay-as-you-drive insurance, and so on.

• Historic, real-time, and predictive data about vehicles and traffic situations as well as car and driver analytics will be used to improve design, launch innovative marketing campaigns, and new convenience services.

• High-tech companies, startups, alternative mobility operators, data management services, insurers, roadside assistance providers, and infrastructure operators will all be players in the vehicle-data monetization landscape.

• Business networks enable new connected-vehicle services to enrich user experience and enterprise mobility options.

Fleet management

In today’s complex ecosystem, smart transportation is playing a central role. It is crucial to drive efficiency and turn complexity into an advantage when managing vehicle fleets.

• Thanks to ubiquitous connectivity, fleet operators have full visibility of their fleet.

• Operators can monitor and analyze data in real time and optimize their operations with the magic of artificial intelligence.

• Transportation becomes safer and more secure with driver-behavior and truck-load monitoring.

• Real-time traffic and vehicle information and route optimization reduce waiting times and increase efficiency.

Autonomous driving and electrification

The driverless car is dominating the auto industry’s hopes and fears. Carmakers wrestle with the game-changing nature of the new technologies. Many of the volume producers realize they are going to have to find new and different ways of generating revenue using the connected nature of the autonomous vehicle.

• Electrified cars transform the auto and utilities sectors and create a new battery industry.

• Automated driver-assistance systems for emergency braking, adaptive cruise control, an automated parking assistant, and vehicle-to-x communication require new technology and platforms.

• Autonomy will progressively transform the car into a platform from which drivers and passengers can use their transit time for personal activities, which could include the use of novel forms of media and services.

REIMAGINE EVERYTHING

REIMAGINE BUSINESS MODELS

New Business Models and Mobility Services

Industry lines are blurring – and established companies across automotive, high tech, transportation, as well as new startups are building new capabilities and introducing new business models that enable and support new concepts in mobility.

REVENUE GENERATIONMcKinsey estimates that, for each minute in which all car passengers worldwide are attentive to mobile media content, an annualized value of €5 billion could be created.12

BETTER CONNECTIVITY AND SAFETYThe U.S. Department of Transportation has projected that vehicle-to-external communications could help prevent 70% to 80% of vehicle crashes.11

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REIMAGINE PRODUCTS

Automotive OEMs and component manufacturers strive for excellence in their products in order to provide the best vehicle experience to the consumer. Digital-savvy millennials’ expectations are reflected in modern vehicle design: smarter and connected to the digital infrastructure.

REIMAGINE EVERYTHING

Smart ProductsThe ultimate smart car is one that will drive autonomously and provide the most value-added services to the owner or user of the vehicle. Apart from the transportation aspect of the vehicle, they will provide a safe, reliable, and connected experience with a low carbon footprint. The key features of such a product are as follows.

Intelligent and self-aware

Sensors, digitalization, and computing power enable the vehicle to be an intelligent module capable of much more than the “mechanical” vehicle of the past.

• The traditional drivetrain gives way to electric platforms. Batteries and software become major components of the vehicle’s bill of materials.

• Predictive analytics is a key enabler to leverage continually generated data to mitigate part and vehicle failures.

• Embedded software and over-the-air firmware or software updates enable the vehicles to be self-sufficient and` current to any changes.

Cybersecure

With the advent of intelligent, connected systems comes a responsibility to ensure that the integrity, safety, and authenticity of the digital elements of the product are assured, and the connected elements maintain privacy and are secure. This requires development and adoption of entirely new disciplines, protocols, and standards within and across industries, business partners, and governments.

Connected digitalization is ushering in a revolution where the physical products are connected to the digital infrastructure.

• The ultimate vehicle-to-vehicle communication enables the safest and most efficient transportation with a high degree of reliability.

• The vehicle of the future will be a giant extension of a mobile device. The possibility of connectivity is endless, with a seamless transition from a smart home to a smart vehicle in a smart city.

• These connected vehicles will integrate geospatial weather, traffic, and business data to provide timely value-added services such as parking, fueling or charging, alternate routes, and a host of relevant services.

Key to a superior customer experience, digitalized products generate terabytes of data that will be used as feedback to provide better, individualized products and services.

• The collection and analysis of data across all vehicles as well as the components enables the manufacturers to correct or enhance the products before any critical failures occur. These insights are also used for designing future-generation vehicles and components.

• The insurance industry provides personalized services based on driver behavior.

• The new breed of digital and value-added service products such as mobility, transportation, media downloads and streaming, maps, routing, parking, and charging need to be managed and commercialized profitably yet appealing to the consumer.

STILL GmbH CubeXX – Not just a forklift The CubeXX concept sets a new standard in intralogistics material handling. It not only provides a number of physical innovations to let the vehicle transform itself for various transport situations; it also has a full digital platform on board that allows it to:• Move autonomously on factory and warehouse floors• Connect to the ERP and warehouse management system to execute transport orders autonomously• Execute transport orders as a fleet – designating the best vehicle to perform a task• Track and monitor all vehicles in the transport fleet remotely

NEW GENERATIONThirty-one percent of respondents to a Forrester research survey answered that they were looking to create products that have never existed.14

NEW GENERATIONLeading companies are introducing a new executive role into their organizations. The chief digital officer (CDO) is responsible for driving digitalization into every aspect of a company – first and foremost its products.15

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- 9 -SAP Digital Automotive © 2017 SAP SE or an SAP affiliate company. All rights reserved.

REIMAGINE BUSINESS PROCESSES

In the digitalized world, business processes must go beyond internal and external boundaries and become more adaptive to customer needs. New, digitally enabled products and services characteristics sold through new, disruptive business models require companies to reimagine their fundamental processes across all lines of business.

REIMAGINE EVERYTHING

Customer centricityFuture retail and customer experience

Digitally connected consumers are driving a revolution across various industries. Having access to a broad range of new technologies and a wide variety of online resources anytime, anywhere, and on any device, these connected customers are using multiple sources of information during their customer journey.

To address their needs:

• Give your customers a meaningful, consistent experience across every channel – in the store, in the car, online, and everything in between – and every time

• Understand your customers and respond to their behavior in real time to give them what they want, when they want it. Gain insights with a single view of customers, products, and services, configurations, and orders.

• Engage and transact with your customers anywhere, at any time, and on any device with unified commerce processes

• Create customer-focused subscription models with the right mix of products and services to capture new revenue streams

Service parts management

Machine learning and predictive maintenance can help reduce equipment failures. Vehicle parts need to be replaced quickly to keep downtime of autonomous vehicles to a minimum. Supply chain costs are being reduced through inventory optimization across the entire parts supply network based on real-time customer, supplier, and operations data.

Digital supply chain and connected manufacturing

Digital technology on the shop floor and in the supply chain intelligently connects manufacturing operations and supply chain networks to the rest of the enterprise, while new technologies such as 3D printing and augmented reality can help dramatically modernize the production of smart digital products.

Other processes: collaborative design and engineering

Product development has traditionally focused solely on the product itself. In a “smart product” world, collaborative engineering processes merge mechanical, electrical, and software developments inside organizations and with external engineering partners. In addition, research and product design processes that use digital capabilities such as the Internet of Things need to be developed in close cooperation with the research for and design of new business models in sales and service. For example, companies will be able to differentiate, update, and enhance products virtually through software updates given or sold to customers without the need to necessarily change the physical product.

Using Big Data to Drive Customer LoyaltyThe Piaggio Group owns some of the most envied brands in the world, including Vespa, Moto Guzzi, and Aprilia. While its main goal is to help people get from point A to point B safely and comfortably, the company is looking to expand beyond the commute, connecting owners even more closely with their vehicles and the brand. The company is looking to implement technology that touches on all points of the owner-vehicle relationship, with options such as vehicle customization and interactions such as helping owners remember where they parked or reminding owners when their vehicle needs servicing.16

91% of marketers are prioritizing customer experience through personalization17

50% reduction of inventory levels, maintaining a 99.7%, 24-hour order fill rate18

Online channels play a critical role in the perception of your brand.19

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- 10 -SAP Digital Automotive © 2017 SAP SE or an SAP affiliate company. All rights reserved.

To remain successful in the digital economy, companies must reimagine their business models and processes. Automotive companies require an adaptive workforce with new skills in order to adjust to the profound changes in how we work, learn, and interact.

REIMAGINE EVERYTHING

REIMAGINE WORK

Engaging a changing workforce

Most substantial business transformations automate manual tasks, enrich jobs, and create new types of work.

Ad hoc collaboration and learning bring together the right people at the right time, independent of organizational boundaries, to learn and perform a task in the most timely, efficient, and effective manner.

Transparency and access to data are key for empowering the digital workforce and enabling automotive professionals to tackle problems with confidence while taking their organizations to even higher levels of innovation and excellence.

Mobile and distributed workers require applications that are simple and scalable across different platforms, ensuring that the right information is easily and quickly accessible at the right time and on the right device.

Automated “lights out” factories will further change the role of the worker into more of an orchestrator and exception manager who engages only when the digital factory requires human creativity and ingenuity.

Flexible business-to-people relationships in the automotive industry are integral to the digitalization of business processes. An entire generation of professionals and skilled tradespeople are retiring and being replaced with a new generation of workers that have a profoundly different expectation about the use of technology in the workplace. Additionally, automotive companies require workers with new skills in software development, machine learning, and artificial intelligence. The transformation to the digitalized world creates new and different interactions for the workforce. Real-time information on the right devices is critical for the workforce of the future to be successful.

Jaguar Land Rover Limited (JLR), headquartered in Coventry, United Kingdom, and a producer of two luxury car brands, needed to standardize HR processes and eliminate bureaucracy to deliver a higher level of HR service and change its operating model for greater efficiency and effectiveness. To achieve these goals, the company implemented the full suite of SAP SuccessFactors® Talent solutions, enabling efficient management of the employee lifecycle, and gained better insights.20

“Our CEO believes that people need to work exceptionally well together for JLR to be successful. HR wouldn’t be able to support that strategy without technology like SAP SuccessFactors solutions.”Naomi Anaam Heer, Head of People Strategy, Jaguar Land Rover Limited21

78% Of employees say it is vey important to work for a digitally enabled company or digital leader22

Robots could replace 1.7 million American truckers in the next decade.23

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SAP DIGITAL TRANSFORMATION

FRAMEWORK

A SIMPLE AND PROVEN APPROACH TO VALUE CREATION THROUGH DIGITALIZATION

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Every company requires a simple, digital approach to build a pragmatic and executable vision of its digital strategy.

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As companies are reimagining their entire business, they need an IT architecture that provides both stability and long-term reliability for the core enterprise processes and, at the same time, allows for flexibility in areas where change is happening on a continuous basis.

This concept, which is often referred to as “bimodal IT,” is brought to life through the SAP Digital Transformation Framework methodology, pictured below.

• SAP brings together business transactions and intelligent insights in a digital core. SAP S/4HANA® drives real-time business transactions, and SAP Digital Boardroom brings real-time intelligent insights.

• Digital transformation always starts with a focus on the customer. SAP Hybris® solutions drive fourth-generation customer engagement and commerce for the digital era.

• The most valuable asset in any organization is its people. By digitalizing workforce engagement across employees and contractors, SAP SuccessFactors and SAP Fieldglass® solutions help ensure that companies get the maximum value from their workforce.

• Supplier collaboration is a top priority for every CEO and CFO. SAP Ariba®, Concur®, and SAP Fieldglass solutions digitalize supplier collaboration across direct materials, indirect spend, travel, and contingent labor.

• The Internet of Things is enabling a new era of productivity gains with Industry 4.0 and next-generation manufacturing. SAP enables companies to leverage the IoT across their business to optimize their extended supply chain and assets.

SAP DIGITAL TRANSFORMATION FRAMEWORK

We have looked at the five strategic priorities that automotive companies are pursuing and how they are reimagining their business models, products, processes, and work to become a digital company.

Let‘s look at how SAP can help them do this by providing a digital transformation framework.

Every company needs to think about the five pillars of a digital strategy

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- 13 -SAP Digital Automotive © 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP PORTFOLIO WITH SAP S/4HANA AND SAP LEONARDO

SAP has innovated its portfolio to provide for a stable digital core as well as flexible line-of-business (LoB) extensions.

In the digital economy, simplification and business innovation matter more than ever. To do this effectively, it’s important to cover the end-to-end digital transformation journey, ranging from planning a digital innovation road map and implementation plan with proven best practices to the ability to run all deployment options and ultimately optimize for continuous innovation with a focus on outcomes. Processes are designed from the outset to flow end to end across the cloud based solution extensions, listed in the white bands, and are fully integrated to S/4 HANA Enterprise Management and are optionally deployed to address business needs. The solution capabilities in the dark blue band, the digital core, are delivered as part of S/4HANA Enterprise Management. The lighter blue band, also in the digital core, is part of S/4HANA Enterprise Management, but added on as needed.

Digital core: Core solution capabilities delivered as part of SAP S/4HANA Enterprise Management

Digital Core: Solution capabilities that are also part of SAP S/4HANA Enterprise Management, but added/purchased as needed.

Extensions: Cloud-based (LoB) solution extensions that are fully integrated with SAP S/4HANA Enterprise Management, but added/purchased as needed.

Leonardo: Solution capabilities that are powered by a Leonardo technology and included in the Leonardo suite and how to add/purchase is not shown on this diagram.

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2© 2014 SAP SE or an SAP affiliate company. All rights reserved.

• Adopt a systems engineering approach such as mechanical, software, and electronic

• Embed the technology foundation for equipment networks

• Install and manage in-product software

• Enable advanced testing and connectivity management

• Track digital components

• Actualize efficient replenishment strategies

• Enable 3D printing for spare parts

• Contextualize customer engagement

• Support omnichannel selling

• Configure products and manage variants such as embedded software

• Enable a feedback loop in internal business processes

• Provide a vehicle network to connect digital products in the field

• Attract and secure top talent

• Work with customers through flexible contracting

• Enable social collaboration among teams

• Finance and manage asset risk for customers through a product-as-a-service contract

• Manage digital rights

• Simplify sourcing of product innovation from nontraditional suppliers

Digital supply chain and connected

manufacturing

• Modularize product concepts and well-structured product families

• Use platform models across product families

• Visualize manufacturing digitally

• Produce for a lot size of one

• Integrate vertically from supplier to customer

• Allow machine-to-machine communication

• Benefit from a digital twin of facilities

• Maintain assets predictively

• Plan sales, operations, demand, and supply with flexibility

• Support responsive material requirement planning

• Drive supplier collaboration

• Achieve real-time, end-to-end visibility into supply chain management

• Forecast sales precisely and reliably

• Align supply chain and sales planning

• Route customer orders directly into the factory as production orders

• Gain full visibility of the vehicle and part lifecycle

• Benefit from a network for vehicle data

• Hand over as-built equipment information to aftermarket services

• Produce service parts with 3D printing

• Address skill gaps

• Onboard and train employees

• Make decisions in real time

• Manage contractors in a flexible manner

• Enable collaborative teams

• Integrate operational and financial plans

• Manage increased financial risks of highly flexible supply chains and manufacturing operations

• Manage a strategic and agile global supplier network

• Onboard suppliers with flexibility

• Operate global, multitier supply chains

Engaging the changing workforce

• Create modern, collaborative, and connected employee experiences

• Benefit from a digital twin of the manufacturing facility

• Connect and automate manufacturing to eliminate errors

• Train employees on demand

• Provide visual work instructions

• Simulate scenarios in real time and recommend actions

• Establish key metrics to help manage by exception and focus on problems

• Gain a unified view of the customer across all engagement channels

• Access sophisticated, user friendly tools designed for marketing and sales teams

• Attract, recruit, and retain new types of talent

• Simplify and access information in real time across business domains

• Identify succession and recruiting needs

• Retain key talent and skills

• Capture and package the knowledge of retiring employees

• Shift work content from stewardship of data to analysis of business information

• Provide collaborative workspaces and workflow

• Integrate contingent workers efficiently

• Find talent with unique skills to drive new business models

Customer

centricity

• Deliver product innovations resulting from actual equipment use and incident reports

• Collect requirements based on interactions with customers and design partners

• Align production flexibility with customer priorities

• Track and trace individual products

• Achieve real-time visibility of orders and deliveries

• Foster demand-driven, collaborative supply networks

• Deliver on time and advance availability-to-promise capabilities

• Personalize marketing and sales

• Segment customers with sophistication

• Engage in solution and value selling

• Replace products predictively

• Organize teams

• Flow customer information across channels

• Personalize end-to-end service parts processes

• Access service knowledge

• Train and certify the workforce

• Work with external partners with greater flexibility

• Share knowledge and build communities

• Manage the customer portfolio strategically

• Analyze profitability instantly across multiple dimensions

• Collaborate with external service-parts suppliers for rapid, high-quality delivery

• Procure 3D-printed parts

Connected mobility

services

• Provide solutions based on vehicle data

• Use data platforms for digital services

• Allow vehicle information sharing along the value chain

• Hand over manufacturing parameters to service

• Relay product use information for production planning

• Collaborate with customers and suppliers

• Improve demand sensing and automate replenishment

• Optimize service parts planning and logistics performance

• Support omnichannel selling

• Sell digital services

• Manage contract value

• Charge based on performance

• Deliver performance-based services and products as a service

• Monitor remote conditions and performance

• Provide predictive services

• Innovate digital services

• Procure and manage contingent labor and services for optimized service delivery across regions

• Allow financial controlling of performance-based service contracts

• Include payment services in digital offerings

• Bundle third-party services with products

Automotive companies play a key role in the digitalization of businesses across all industries through:They pursue five

key initiatives that

require

new business

capabilities along

the value chain.

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2. Innovative processes that leverage digital capabilities of the equipment they use1. Digitally enabled vehicles and mobility services

Digital smart

products

Sustainable Product Innovation

Manufacturing and Logistics

Responsive Supply Networks

Human Resources Finance ProcurementMarketing, Sales, and

AftermarketDigital Services

Typical business

benefits*

▪ On-time delivery: +10%–20%

▪ Inventory levels: -25%–30%

▪ Customer satisfaction: +10%–20%

▪ Cost due to stock-outs: 20%–25%

▪ Days in inventory: -10%–12%

▪ Total logistics cost: -10%–12%

▪ New products revenue: +10%–20%

▪ R&D cost: -20%–30%

▪ Revenue targets achieved:

+15%–20%

▪ Procurement function cost: -15%–20%

▪ Worker acquisition time: -30%–40%

▪ Days payable outstanding on

targeted spend: -2–5 days

▪ Total manufacturing cost: -10%

▪ Manufacturing cycle time: -10%

▪ Scrap value: -25%

▪ Revenue leakage: -7%–9%

▪ Service delivery cost: -4%–5%

▪ Cost of noncompliance: -4%–5%

▪ Days to close annual books: -4–50 days

▪ Budgeting and forecasting cost:

-5%–50%

▪ Audit cost: -20%–40%

▪ Lower time and attendance function

▪ HR full-time equivalents: -44%

Digital Innovation

SAP® Leonardo

Extensions

Digital Core

SAP S/4HANA®

SAP Cloud Platform Analytics Services Mobile Services Security Services Collaboration Services UX Services

BlockchainMachine Learning Big DataInternet of Things Analytics

Marketing, Sales and Aftermarket

▪ Cloud for customer

(collaborative sales mgmt., selling

through contact centers, omnichannel

customer service,)

▪ Contextual marketing

▪ Omnichannel commerce

▪ Social collaboration

▪ Order and contract management

▪ Billing and revenue Innovation mgmt.

▪ Sales planning and performance

management

▪ Vehicle sales management

▪ Advanced available to promise

Digital Services

▪ Mobility as a service (vehicle insights,

vehicles network, and ridesharing with

the TwoGo by SAP initiative)

▪ Asset intelligence network

▪ Billing and revenue innovation

management

Human Resources

▪ Core human resources and payroll

▪ Talent management

▪ Time and attendance management by

Workforce

▪ Human capital Analytics

▪ Time recording

Finance

▪ Digital boardroom

▪ Invoice matching

▪ Financial planning and analysis

▪ Accounting and financial close

▪ Treasury management

▪ Receivables management

▪ Invoice mgmt. and accounts payable

▪ Accounting and closing operations

▪ Accounting

▪ Cost management and profitability

analysis

▪ Shared service framework

▪ Ariba collaborative finance

▪ Governance, risk, and compliance for

finance

▪ Business planning and consolidation

Sustainable Product Innovation

▪ Enterprise portfolio and project

management

▪ Environment, health, and safety

management

▪ Compliant product lifecycle mgmt.

▪ Product development and project

control*

▪ Production engineering

▪ Variant configuration

▪ Embedded software management

▪ Engineering control center

(including integration of SAP PLM)

▪ 3D visual enterprise

▪ Innovation management

▪ Product stewardship network

Manufacturing and Logistics

▪ Constrained production planning

▪ Production scheduling

▪ Asset operations and maintenance

▪ Quality issue management

▪ Production operations

▪ Model mix planning and sequencing

▪ Just-in-time processing

▪ Quality management

▪ Maintenance management

▪ Asset intelligence network

▪ Manufacturing execution

▪ Manufacturing integration and

intelligence and plant connectivity

Responsive Supply Networks

▪ Inventory and basic warehouse

management

▪ Extended warehouse management

▪ Service parts management

▪ Advanced available to promise (ATP)

▪ Integrated business planning

▪ Transportation management

▪ Collaborative supply chain

▪ Service parts planning

▪ Global batch traceability

▪ AR warehouse picker

jim01.d

avis

@sap.c

om

Procurement

▪ Supplier collaboration

▪ Guided end-user buying

▪ Business network

▪ External workforce management

▪ Operational purchasing

▪ Invoice and payables management

▪ Supplier management

▪ Procurement analytics

*Benefits

are

based o

n e

arly

adopte

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▪ Resume matching

▪ Job matching

▪ Product lifecycle costing

▪ Connected car analytics

▪ Predictive maintenance and service

▪ Product recognition

▪ Audience analysis

▪ Brand intelligence

▪ Embedded software management

▪ External workforce management

▪ Invoice and payables management

▪ Procurement analytics

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- 15 -SAP Digital Automotive © 2017 SAP SE or an SAP affiliate company. All rights reserved.

Watch a video illustrating the scenario here:

HOW DOES IT ALL COME TOGETHER? CONNECTED VEHICLE EXAMPLE

Automotive manufacturers and fleet operators can benefit from digitalization and capture new topline revenue as well as bottom-line savings by running sophisticated business scenarios.

Sensors can provide real-time information about upcoming, maintenance-relevant issues in vehicles on the road or give deeper insights into driving behavior. Applying a digital business framework described above can optimize service parts business, create a delightful brand experience, and increase revenue by offering relevant products and services.

Digital products

Customer interactions

Workforce enablement

Suppliers and partners

Push real-time alerts to fleet dashboards

Monitor vehicle telematics

Data-driven remote

diagnostics②

Optimize parts sourcing

3D print of spare part

Gain real-time customer Insights

Investigate machine

supplier updates

Real-time, contextual, 1:1

marketing

Deliver unique customer

experiences

Pay-as-you-drive

contracting

In-car commerce

Predictive maintenance

Predict service parts demands

Digital

TIME

In this scenario, automotive manufacturers and fleet operators can:

• Leverage vehicle and driver insights

• Optimize parts supply chain to improve service levels

• Run contextual marketing campaigns and offer additional services

The figure above shows how companies can take advantage of connected vehicles.

1. Telemetry data such as engine temperature, tire pressure, and fault codes is sent to a central system, data is visualized, and automatic predictions of impending failures are generated. Intelligent algorithms proactively push real-time alerts to a dashboard, suggesting corrective action to a fleet manager.

2. Remote diagnostics allow analysis of any predictive service requested.

3. When impending failure is predicted, maintenance orders and service parts demand are automatically triggered in a central back-end system.

4. Material demand for spares needed is automatically sourced and delivered in time to the point of repair, thus reducing inventory levels and supply chain costs and optimizing uptime.

5. Real-time customer insights enable a deeper understanding of customers’ behavior, preferences, and needs.

6. Data about explicit and implicit customer behavior allows the company to capitalize on in-the-moment marketing opportunities. This enables the identification of the right target audience for a campaign and personalization of marketing messages across multiple channels.

7. New value-added services, such as pay-as-you-drive or in-car-commerce services, open up new revenue streams.

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- 16 -SAP Digital Automotive © 2017 SAP SE or an SAP affiliate company. All rights reserved.- 16 -

FROM YOUR CURRENT STATE TO DIGITAL

THE JOURNEY TO BECOME A DIGITAL AUTOMOTIVE MANUFACTURER BEGINS WITH PLANNING A DIGITAL TRANSFORMATION ROAD MAP

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- 17 -SAP Digital Automotive © 2017 SAP SE or an SAP affiliate company. All rights reserved.

In the digital economy, simplification and business innovation matter more than ever. To do this effectively, it’s important to cover the entire digital transformation journey, ranging from planning a digital innovation road map and implementation with provenbest practices to the ability to run all deployment options and, ultimately, optimize for continuous innovation with a focus on outcomes.

TRANSFORMING FROM YOUR CURRENT STATE TO DIGITAL

The keys to success

To move forward with speed and agility, it helps to focus on live digital data, instead of Big Data, and combine solution know-how and industry-specific process expertise with data analytics so that the appropriate reference architecture is defined and delivered. In that context, we believe that a model company approach is very relevant to enable you to transition from your current state to digital. Model companies represent the ideal form of standardization for a specific line of business or industry. They are built on existing SAP solutions using best-practice content, rapid prototyping solution packages, and additional content from customer projects. They provide a comprehensive baseline for rapid, customer-specific prototypes, cloud demos, and quick-start implementations.

Build and launchWith proven best

practices

Standardize and innovate• Model company approach

to accelerate adoption with model industry solutions

• Design thinking and rapid tangible prototypes

• Co-engineered industry innovations delivered with agility

PlanWell to manage

expectations

Simplify and innovate• Reimagined business

models, business processes, and work

• SAP Digital Transformation Framework as a guide for digital transformation

• Value-based innovation road maps

Run All deployment

models

Run with one global support• One global, consistent

experience

• End-to-end support – on premise, cloud, and hybrid

OptimizeFor continuous

innovation

Optimize to realize value• Capture and realize

benefits of digital transformation continuously

The end-to-end digital transformation journey

Model-Company Approach

Social networks

Businessnetworks

Internetof Things

Big Data

Devices

People

End-to-end solution

Innovation

Differentiation

Best practice SAP® productsModel company

End-to-end business process

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- 18 -SAP Digital Automotive © 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP has a broad range of services to cover the digital transformation journey, ranging from advising on a digital innovation road map and implementation plan with proven best practices to the ability to run all deployment options and, ultimately, optimize for continuous innovation. We provide both choice and value within our service offerings, allowing you to tailor the proper approach based on your specific company expectations and industry requirements.

SAP DIGITAL BUSINESS SERVICES

Enabling your success in digital transformation

From providing a comprehensive digitalization proposal to realizing and running it, SAP delivers on the digital transformation promise to its customers – on time, on budget, and on value.

SAP value delivery relies on unique differentiating assets:

Digital Business Foundation Business Insights Continuous Improvement

• Digital boardroom

• Predictive customer insights

• Value realization dashboard

• Agile decision making and

execution support

• Joint value governance

• Sustainable engagement model

• Innovation without disruption

• Simplification

• Digital business model

• Flexible, scalable enterprise

architecture

• Platform for the digital future

• People and culture transformation

The SAP Digital Business Services organization delivers digital innovation with simplification and accelerated implementation, which are key to adoption and value realization. Continuous improvement is supported through ongoing assessment of real-life data insights and joint governance with customers.

SAP value delivery focuses on the following deliverables:

SAP Activate methodologyExhaustive service portfolio

SAP Solution Manager

SAP® Model Companyservice

SAP Mission Control Center

• 25,000 professionals in 70 countries

• Serving customers in 130 countries

• Outcomes delivered as one team in one contract

• Projects connected in real time to a global network of support functions through SAP Mission Control Center

• SAP MaxAttention™ and SAP ActiveEmbedded services to safeguard investment

• Consistent experience – on premise, in the cloud, or hybrid

• Standardized adoption of processes and tools

• Streamlined onboarding and ramp-up of stakeholders

Expert organization

Global reach Partner ecosystem

Industry expertise

Focus on business outcome

Co-innovation

Run better: Operate

Use better: Harvest

Extend use:Invest

Build new:Innovate

Corporate Strategy

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- 19 -SAP Digital Automotive © 2017 SAP SE or an SAP affiliate company. All rights reserved.

Our comprehensive ecosystem for the automotive industry offers:

• Integration into a wide range of business services (suppliers, banks, retailers, travel services, and more)

• Open architecture, with a choice of hardware and software

• Complementary and innovative third-party solutions

• Reach – partners to serve your business of any size anywhere in the world

• A forum for influence and knowledge

• A large pool of industry experts with broad and deep skill sets

OUR COMPREHENSIVE ECOSYSTEM

Orchestrating the world to deliver faster value

DRIVING CUSTOMER

VALUE

BUSINESS NETWORK

• 2.0 million suppliers

• 200 major travel partners (air, hotel, and car)

• 50,000 service and contingent labor providers

IMPLEMENTATION SERVICES

• >360 service partners focused on automotive

• 3,200 services partners overall

• Automotive-specific solutions and services

PLATFORM AND INFRASTRUCTURE

• 1,400 cloud partners overall

• >1,500 platform partners

CHANNEL AND SMALL AND MIDSIZE ENTERPRISES (SME)

• >860 automotive channel partners

• 4,800 channel partners overall

INNOVATION

• >1,900 OEM solution partners to extend SAP solutions

• 2,000 startups developing applications that integrate with SAP HANA®

INFLUENCE FORUMS AND EDUCATION

• 32 user groups across all regions

• >40 industry councils

• SAP community with >24 million unique visitors per year

• 1,800 SAP University Alliances

Our partner ecosystem includes, among others:

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- 20 -SAP Digital Automotive © 2017 SAP SE or an SAP affiliate company. All rights reserved.

WHY SAP?

SAP HAS THE VISION, THE SOLUTIONS, AND THE COMMITMENT TO GO WITH YOU ALL THE WAY, FROM DEFINING YOUR DIGITAL STRATEGY TO DELIVERING THE RIGHT SOLUTIONS TO RUNNING YOUR DIGITAL BACKBONE IN THE CLOUD.

- 20 -

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- 21 -SAP Digital Automotive © 2017 SAP SE or an SAP affiliate company. All rights reserved.

SAP IS COMMITTED TO INNOVATION

Vision

Mission

Strategy

Help the world run better and improve people’s lives

Help our customers run at their best

Become the cloud company powered by SAP HANA

• >85,000 employees representing >150 nationalities

• 350,000 customers

• Operations in 190 countries

• Solutions for 25 industries and 12 LoBs

• 98% of most valuable brands are our customers

• 76% of the world’s transactions managed on SAP software

• 120 million business cloud users

• 1.9 million connected businesses

• >$800 billion in B2B commerce

• >99% of mobile devices connected with SAP messaging

• 2011: SAP HANA launched

• 2012: SAP Cloud solutions launched

• 2014: SAP business networks form the largest marketplace in the world

• 2015: SAP Cloud Platform

• 2015: SAP S/4HANA launched as the next-generation business suite

• Member of Industry 4.0 board and the Internet of Things Consortium

• 99% of the companies in the Forbes 2000 that make connected manufacturing possible are SAP customers

FAURECIA

“With SAP HANA, we can now run our MRP in less than an hour, covering thousands of complex variants and product combinations. SAP HANA is a game-changing innovation.”24

KOMATSU

“SAP HANA gives us the complete view of our customers. Having real-time access to centralized data helps our sales and service teams get the information they need to serve our customers better.”26

AUTOMOTIVE RESOURCES INTERNATIONAL (ARI)

“Reducing overhead costs by 5%, while increasing the impact our contact centers have on customers, has been a huge win for us.”24

GLOBAL PRESENCE

AND RELEVANCE

INDUSTRY AND LOB

FOCUS

DIGITAL ECONOMY

READY

INNOVATIONLEADER

INDUSTRIAL INTERNET OF

THINGS ENABLED BY

SAP

Source: internal SAP data

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- 22 -SAP Digital Automotive © 2017 SAP SE or an SAP affiliate company. All rights reserved.

RESOURCESListed below are the sources used as reference material for this white paper.

1. Sven Beiker, Fredrik Hansson, Anders Suneson, and Michael Uhl, “How the convergence of automotive and tech will create a new ecosystem,” McKinsey & Company, November 2016, www.mckinsey.com/industries/automotive-and-assembly/our-insights/how-the-convergence-of-automotive-and-tech-will-create-a-new-ecosystem?cid=eml-web

2. “Harley-Davidson ‒ Driving a Future of Excellence,” IndustryWeek, 2014,www.industryweek.com/iw-best-plants/2013-iw-best-plants-winner-harley-davidson-driving-future-excellence

3. STILL GmbH, SAP SE, https://dam.sap.com/mac/download/a.htm?c=46&k=DSvN4D1vS17v57J0iRNak01iuNCfRp5ifRx70l0b00ikGlF15I

4. “Bosch Secure Truck Parking,“ SAP SE, 2016 https://dam.sap.com/mac/download/a.htm?c=46&k=DNCfBNvFfGllC52FlR0Gf1flj11N7X7lvkM0CN7GSkvSYRkmiy

5. “Driving Two Million Vehicles with Real-Time Data,” customer journey, SAP SE, http://bit.ly/16pBNJP

6. “Automotive revolution – perspective towards 2030,” McKinsey & Company, January 2016, www.mckinsey.de/files/automotive_revolution_perspective_towards_2030.pdf

7. “2016 electronica Show Appeals to More Connected Security,” audioXpress, November 2016, www.audioxpress.com/article/2016-electronica-show-appeals-to-more-connected-security

8. “Automotive revolution – perspective towards 2030,” McKinsey & Company, January 2016, www.mckinsey.de/files/automotive_2030.pdf

9. “How Automakers Are Driving Innovation,” Alliance of Automobile Manufacturers, 2017, https://autoalliance.org/innovation

10. Dr. Reinhard Geissbauer, “The future of spare parts is 3D,” PwC, January 2017, www.strategyand.pwc.com/reports/future-spare-parts-3d

11. “Navigant forecasts connected vehicle revenue to grow to $36.6B by 2025,” Green Car Congress, BioAge Group LLC, April 2015, www.greencarcongress.com/2015/04/20150424-navigantv2x.html

12. “Mobility of the Future,” page 7, McKinsey & Company, 2012, www.mckinsey.com/~/media/mckinsey/dotcom/client_service/automotive%20and%20assembly/pdfs/mobility_of_the_future_brochure.ashx

13. “STILL: Using the SAP HANA Cloud Platform for the Internet of Things,” SAP SE, 2016, www.sap.com/assetdetail/2015/04/c6c59182-247c-0010-82c7-eda71af511fa.html

14. “Online and Mobile Are Transforming B2B Commerce,“ Forrester Research Inc., www.hybris.com/en/downloads/white-paper/b2b-forrester-paper/529

15. “The Rise of the Chief Digital Officer,” Russell Reynolds Associates, 2012, www.russellreynolds.com/insights/thought-leadership/the-rise-of-the-chief-digital-officer

16. “Using Big Data to Drive Customer Loyalty, Piaggio Group, customer journey. http://sap-espresso.com/viewStory/552

17. “The Contextual Marketing Imperative,” Forrester Research Inc., October 2015, https://assets.cdn.sap.com/sapcom/docs/2015/10/3c6868f1-487c-0010-82c7-eda71af511fa.pdf

18. “Driving Aftermarket Value: Upgrade Spare Parts Supply Chain, Deloitte China Auto Industry Spare Parts Management Benchmark Survey White Paper,” Deloitte Consulting, 2013, www2.deloitte.com/content/dam/Deloitte/cn/Documents/manufacturing/deloitte-cn-mfg-auto-indspareparts-whitepaper-en-171013.pdf

19. “The digital transformation of customer services: 0ur point of view,” page 19, Deloitte Touche Tohmatsu Limited, 2013, www2.deloitte.com/content/dam/Deloitte/nl/Documents/consumer-business/deloitte-nl-the-digital-transformation-of-customer-services.pdf

20. “Jaguar Land Rover: Giving Staff Consumer-Like Digital Experiences with SAP SuccessFactors Solutions,” customer reference, SAP SE, 2016, https://d.dam.sap.com/a/OnnPO

21. Jaguar Land Rover customer reference, SAP SE, 2016, https://d.dam.sap.com/a/OnnPO

22. Calculation by SAP Center for Business Insight based on “The Rise of Robotics,” BCG, August 2014, www.bcgperspectives.com/content/articles/business_unit_strategy_innovation_rise_of_robotics

23. Natalie Kitroeff, “Robots could replace 1.7 million American truckers in the next decade,” Los Angeles Times, September 2016, www.latimes.com/projects/la-fi-automated-trucks-labor-20160924

24. “ARI: Driving Results in Fleet Management on SAP HANA,” Big Data Analytics powered by SAP HANA, page 28, 2013, http://hana.sap.com/content/dam/website/saphana/en_us/PDFs/ebooks/Big%20Data%20eBook_June%202015.pdf

25. “Faurecia: Forecasting Millions of Euros in Savings with Real-Time MRP Using SAP HANA,” Driving Business Value with SAP HANA, page 24, SAP SE, 2015, http://hana.sap.com/content/dam/website/saphana/en_us/PDFs/ebooks/37721_HANA%20Business%20Value%20eBook%20Update%20March%202015_final.pdf?isSubmittedAfterAuth=true

26. “Komatsu Australia: Centralizing Data for One View of the Customer with SAP HANA, Run Simple with SAP HANA, page 55, SAP SE, 2015, http://go.sap.com/docs/download/2015/10/6487c64a-457c-0010-82c7-eda71af511fa.pdf

Note: All sources cited as “SAP” or “SAP benchmarking” are based on our research with customers through our benchmarking program or other direct interactions with customers.

Note: Some images are used under license from Rinspeed.

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- 23 -SAP Digital Automotive © 2017 SAP SE or an SAP affiliate company. All rights reserved.

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© 2017 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have 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 SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies 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. 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, and they should not be relied upon in making purchasing decisions.

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