PUBLIC

Rainer Zinow, SAP Business One & SAP Business ByDesign Product Management

December, 2018

SAP Business One2018 and 2019

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

permission of SAP.

Except for your obligation to protect confidential information, this presentation is not subject to your license

agreement or any other service

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

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

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

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

reason without notice. The information in this presentation is not a commitment, promise or legal obligation to

deliver any material, code or functionality. This presentation is provided without a warranty of any kind, either

express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular

purpose, or non-infringement. This presentation is for informational purposes and may not be incorporated into a

contract. SAP assumes no responsibility for errors or omissions in this presentation, except if such damages were

caused by SAP’s intentional or gross negligence.

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

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

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

decisions.

Disclaimer

2018

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Key Capabilities

Finance

Sales

Procurement

Professional

Services

Enterprise

Portfolio and

Project

Management

Component

Manufacturing

Our Mission – Provide Choice and Unlimited Path to GrowthIn SAP’s ERP portfolio for the cloud

The Intelligent Enterprise

features 3 key components:

SAP ERP Portfolio

SAP

S/4HANA

Cloud

SAP

S/4HANA

SAP

Business

ByDesign

SAP

Business

One

Cloud

ERP

On-premise

ERP

SME

Business

LE & GB

Business

© IDC 5

Market Survey – SMB Cloud Engagement Suggests Digital Divide

Source: 2018 IDC US SMB Survey, n = 820

Cloud use as potential predictor of digital engagement –

Window into “the SMB Digital Transformation soul”

Current Importance of Cloud as Technology Resource

22,5%

8,9%

28,9%

10,3%

28,9%

21,5%

13,1%

18,0%

3,6%

41,3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

MB 100-999 emp

SB <100 emp

Cloud integral to business Cloud primary tech source Cloud/On prem equally import

On prem primary/Some cloud On prem primary - Min/No cloud

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Accounting

& Financials

Management

& Administration

Sales &

Service

Purchasing

& Operations

Inventory

& Distribution

Production & MRP

Project & Resource

management

Build-in horizontal

Extensibility

Facts and Figures:

▪ 60,000+ customers

▪ 44 country localizations and

28 languages

▪ ~300 Software Solution Partners

with 500+ solutions

▪ 850 Value Added Resellers

implement worldwide

▪ Used in 170 countries

▪ 5,600+ subsidiaries run

SAP Business One

SAP Business One – Digital Platform for SME

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Current localizations (44)

Argentina Denmark Italy Singapore

Australia Finland Japan Slovakia

Austria France Mexico South Africa

Belgium Germany Netherlands South Korea

Brazil Greece New Zealand Spain

Canada Guatemala Norway Sweden

Chile Hong Kong Panama Switzerland

China Hungary Poland Turkey

Costa Rica India Portugal Ukraine

Cyprus Ireland Puerto Rico United Kingdom

Czech Republic Israel Russia United States

Countries making use of localizations

Customers in more than 130 countries use localization of other

countries, own customization, or partner solution

*A convenient option to make additional languages available is to use a partner solution (for some countries bundled with functional add-ons) or to define customer-specific UI terms using the custom language tool as detailed in SAP Note 1757764.

Current system languages (28)*:

Arabic, Chinese (simplified/traditional), Czech, Danish, Dutch, English (UK/U.S.), Finnish, French,

German, Greek, Hebrew, Hungarian, Italian, Japanese, Korean, Norwegian, Polish, Portuguese (Brazil),

Portuguese, Russian, Slovak, Spanish (Latin America), Spanish, Swedish, Turkish, and Ukrainian

SAP Business One – Used in more than 170 countriesMaster the challenge of globalization in your business

2019

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Schematic illustration of major deliveries

2018 2019 2020 2021 2023

Continuous deliveries for all versions in mainstream maintenanceAll products

Continuous enhancements for SAP Business One Cloud, partner- and SAP-hosted optionsCloud

Continuous enhancements for all mobile appsService app

for AndroidMobile apps

Version 10.1Version 10Version 9.3SAP Business One (version for MS SQL and

version for SAP HANA)

SAP Business One – Releases and related productsSolid product road map with continuous innovation

2022

Version 10.2 Version 11

This is the current state of planning and may be changed by SAP at any time.

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SAP Strategy – Deliver the Intelligent Enterprise for Midsized Companies

AI/ML | IoT | Analytics

SAP Business

One

CustomerExperience

Manufacturing& Supply Chain

Digital Core

PeopleEngagement

Network & SpendManagement

Intelligent Technologies

Digital Platform

DataManagement

CloudPlatform

1THE INTELLIGENT

ENTERPRISE features 3

KEY COMPONENTS:

Intelligent Enterprise Suite

2 Intelligent Technologies

3 Digital Platform

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“This … approaches big data, artificial intelligence, machine learning, and business intelligence through the lens of Data

Science. We have grown accustomed to seeing these terms mentioned time and time again in the mainstream

media. However, our understanding of what they actually mean often remains limited.”

Artificial Intelligence (AI)▪ Intelligence exhibited by machines

▪ Broadly defined to include any simulation of human intelligence

▪ Expanding and branching areas of research, development and investment

▪ Includes robotics, rule-based reasoning, natural language processing (NLP), knowledge representation

techniques (knowledge graphs),…

Machine Learning (ML)▪ Subfield of AI which aims to teach computers the ability to do

tasks with data, without explicit programming

▪ Uses numerical and statistical approaches, including artificial

neural networks to encode learning in models

▪ Models built using “training” computation runs or through usage

Artificial

Intelligence

Machine Learning

Text to Speech

Speech to Text

Speech

Deep Learning

Robotics

Rule-based Reasoning

Deep Learning (DL)▪ Subfield of ML which uses specialized techniques

involving multi-layer (2+) artificial neural networks

▪ Layering allows cascaded learning and abstraction

levels (e.g. line -> shape -> object -> scene)

▪ Computationally intensive enabled by clouds, GPUs,

and specialized HW suchas FPGAs, TPUs, etc.Autonomous

Vehicles

Natural Language Processing

Translation Machine Vision

Data Science

Sources: SAP CMI Synthesis of multiple sources – Dec 2017

▪ Also known as Predictive or

Advanced Analytics

▪ Algorithmic and

computational techniques

and tools for handing large

data sets

▪ Increasingly focused on

preparing and modelingdata

for ML & DL tasks

▪ Encompasses statistical

methods, data manipulation

and streaming technologies

(e.g. Spark, Hadoop)

▪ Key skill and tools behind

building modern AI

technologies

Data Science in Practice (2019)Picture from Al Hilwa: Senior Director, AI/ML/Platform Technologies Research

SAP Strategy – Terminology

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SAP Strategy – Terminology

How Do I Become a Data Scientist?

• „Business Intelligence“

• „Analytics“

• „Smart Analytics“

• „Smart Data Discovery“

• „Predictive Analytics“

• „Machine Learning“

• „Advanced Analytics“

• „Data Science“

• „Artificial Intelligence“

• „Cognitive Computing“

• „Knowledge Representation“

• „Statistical Learning“

• „Deep Learning“

• etc.

http://rapidminer.com/advanced-analytics-introduction/

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SAP Business One – Outlook 2019

WebClient

Fiori/UI5

MobileIntelligent

Enterprise

Localizations

Knowledge

Transfer

CRM &

Wholesale

HANA 2.0

Analytics

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➢ Machine learning/Intelligent ERP (process automation) combined with IoT

➢ Extend core functions and localizations based on market feedback concentration on Wholesale/Retail objects

➢ UX focus – leveraging new B1 Skin

➢ Web client with SAP Fiori/UI5 design focused on Sales processes, based on B1 HANA core, leveraging the Service Layer

➢ Enhanced analytical capabilities leveraging HANA 2.0

➢ Utilize the new Integration framework 2.0 and deliver additional scenarios

➢ Interactive commands via chatbot based on Recast

➢ Improvements for cloud deployment focused on Partner-cloud needs

Version 10

SAP Business One – Version 10Opens New Horizons and Brings New Opportunities

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Recent innovations Planned innovations1 Product direction1

1. This is the current state of planning and may be changed by SAP at any time without notice.

SAP Business One – Outlook 2019Product road map overview – key themes and capabilities

Core

▪ Continuous innovations, project, production, and service

Globalization

▪ New localizations Ukraine and Greece, enhanced Russia and

U.S., India GST, Mexico CFDI 2017

▪ Contract (blanket agreement) enhancements for IFRS 15

compliance

▪ Electronic documents framework extensions

▪ Personal data protection (EU GDPR)

Analytics

▪ Analytics portal; semantic layer expansion

▪ Innovations based on SAP HANA

Mobile

▪ New Service app and redesign of the Sales app including offline

capabilities

Extensibility

▪ Semantic layer API

▪ Integration Framework 2.0; Edition for single-board computers

Cloud

▪ Enhanced infra and tools

Core

▪ SAP HANA 2.0 support with SAP Business One Version 10

▪ Web client introduction

▪ Intelligent ERP elements, such as Machine learning, Internet of

Things (IoT);

Globalization

▪ Advanced localization platform (electronic files and documents

automation); Middle East localization

▪ Integration to SAP’s Digital Compliance Platform (known as

Electronic documents as a service integration) and Integration to

SAP’s Advanced Compliance Reporting

▪ UK’s Making Tax Digital

▪ EU PEPPOL & EU Intrastat package

Analytics

▪ SAP HANA 2.0 features

Mobile

▪ Service app for Android

Extensibility

▪ SAP API Business Hub / Cloud API Management

▪ Event service based on publish/subscribe model

Cloud

▪ Various hosting options

▪ Improvements in stability, security, and high availability

▪ Substantial management of users, software, and tenants

Conversion to an highly generic and extremely flexible platform

Core

▪ Web client extended functionality

▪ Optimized scalability/performance

▪ Continuous innovations, project, CRM, and service

Globalization

▪ Expansion to new markets/regions

▪ Integrations to electronic fiscal services

Analytics

▪ Insight to action (data mining)

▪ Predictive, pervasive, and scalable

▪ Built-in content

Mobile

▪ Grow solution base, extension platform

Extensibility

▪ Integrate with SAP Cloud Platform (SCP)

▪ Scalable API services

Cloud

▪ Hybrid deployment

▪ Simplified cloud tools

▪ Extension repository

▪ Improved UI/UX and tools performance

▪ Reduction of TCO

Thank you.