SAP Business Transformation Summit 2015have a potential economic impact of $4 trillion to $11...
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St. Leon-Rot, 22-23 October Michael Kleinemeier Member of the SAP Global Managing Board Dr. Christoph Steiger Global Head of SAP Business Transformation Services SAP Business Transformation Summit 2015
Transcript of SAP Business Transformation Summit 2015have a potential economic impact of $4 trillion to $11...
St. Leon-Rot, 22-23 October
Michael KleinemeierMember of the SAP Global Managing Board
Dr. Christoph SteigerGlobal Head of SAP Business Transformation Services
SAP Business Transformation Summit 2015
New customerbehavior
New Business Models
Time to Market of new Products
New DemographicReality
Significantcost pressures
New Regulation(IFRS 4 , Solvency II,…)
Digital Economy − Some Drivers
NETFLIX or …… The Rise and Fall of BLOCKBUSTER
2000
2004
2010
2015
BLOCKBUSTERdeclines to purchase NETFLIX for $50m
Market value: $5bRevenue: $6b# of Stores: 9,000
Revenue: $500m
files for bankruptcy
Company value: $13b
brand retired
Company value: $33bRevenue (FY 2014): $5.5b# FTE: 2,189# Subscribers: 50mproduces own content
Digital Business is Here to Stay- Disruption and Business Opportunities are Everywhere
Leaders are Emerging from Nowhere90% of CEOs believe the digital economy will impact their industry, but less than 15% are executing on a digital strategy *
Early Adopters are Winning Early adopters are achieving +9% revenue creation, +26% impact to profitability, and +12% market valuation.*
Industry Boundaries are BlurringEvery company is expanding beyond traditional industry boundaries and also becoming a technology company
Source: * MIT Sloan and CapGemini, 2013,
• Under Armour is not just selling shirts and shoes. They are connecting 38 million people on a digital health platform
• Facebook is not just a social network, it is the largest media company even though it doesn’t create content
• Uber is not just another taxi company, it is transforming into an “urban logistics” company with 200,000 drivers, roughly double the size of the UPS delivery workforce
• Siemens is not just an industrial powerhouse. They are a software company connecting their industrial assets in the cloud and enabling customers to generate new revenue streams by selling services, not products
• Alibaba is not just the largest e-commerce company, they are also a financial services and technology company blurring industry lines
Digital business models are disruptive.
The rules have changed.
Digital Transformation - Technology is driving the digital era − Every business is becoming a technology business
5TECHNOLOGY
TRENDS
Cloud Computing
Software as a Service (SaaS)
Platform as a Service (PaaS)
Infrastructure as a Service (IaaS)
Super Computing
In-memory computing
Big Data
Hyper-Connectivity
Social & Business Networks
Internet of Things (IoT)
Mobility
Cyber Security
Securing data
Securing interactions
Securing identities
Smarter World
Sensor - Robotics
Industry 4.0
3D printing
Machine Learning
Artificial intelligence
SAP offers the only end-to-end digital business solution S/4HANA enables digitization across 5 business pillars
SAP HANA Platform
Assets &Internet of Things
Customer ExperienceOmni-Channel
Supplier CollaborationBusiness Networks
Workforce Engagement
HANA CLOUDPLATFORM
Digital Core
Dr. Christoph SteigerGlobal Head of SAP Business Transformation Services
Welcome to the SAP Headquarters for the 5th BT Summit
Washington
Innovation & Transformation
Barcelona
Communitykick-off
Budapest
Business Transformation
Berlin
Innopreneurship
2011 2012 2013 2014 2015
St. Leon-Rot
Digital Transformation
The 4 stages of Industrialization
21 3
Beginning of 20th century
Electrification:Use of electrical power to enable work-sharing
mass production
End of 18th century
Mechanization:Use of water and steam power to run mechanical
production facilities
Early 1970s
Computerization: Use of electronics and
IT to automate production
Today
Networking:Use of cyber-physical systems
to connect, transform and reimagine business
4
10© 2014 SAP SE or an SAP affiliate company. All rights reserved.
1st Industrial Revolution: Mechanization
Connection to Rhein-Neckar Region:
BASF founded in Mannheim/ Ludwigshafen in 1865
Mannheim as a factory location nearby the event location
21 3
Beginning of 20th century
End of 18th century
Early 1970s
Today
4
12© 2014 SAP SE or an SAP affiliate company. All rights reserved.
2nd Industrial Revolution: Electrification
Connection to Rhein-Neckar Region:
In 1888 Bertha Benz drove the first automobile nearby the event location
Start for the rise of Mercedes-Benz and the automotive industry in Germany and worldwide
21 3
Beginning of 20th century
End of 18th century
Early 1970s
Today
4
St. Leon-Rot
14© 2014 SAP SE or an SAP affiliate company. All rights reserved.
3rd Industrial Revolution: Computerization
Connection to Rhein-Neckar Region:
In 1972 SAP was founded in the region by 5 employees of IBM’s Mannheim office
SAP became a pioneer of enterprise software and has its global headquarters still in this region
21 3
Beginning of 20th century
End of 18th century
Early 1970s
Today
4
16© 2014 SAP SE or an SAP affiliate company. All rights reserved.
4th Industrial Revolution: Networking
Connection to Rhein-Neckar Region:
SAP Data Center in Rot hosts the infrastructure for the digital network business and cloud computing
Largest SAP Data Center with Green SAP Cloud powered by 100% renewable energy
21 3
Beginning of 20th century
End of 18th century
Early 1970s
Today
4
Digital Transformation Why now and what’s so special?
DRIVERS BENEFITS
Technology1.
Profitability
Differentiation
CustomerFocus
EmployeeSatisfaction
Agility
DIGITIZATION AREAS EXAMPLES
DIGITIZE
BUSINESS MODELS
DIGITIZE
BUSINESS PROCESSES
DIGITIZE
WORK
Funds2.
Servitization4.
Urbanization5.
Behavior3.
19© 2014 SAP SE or an SAP affiliate company. All rights reserved.
What’s next?
Some Predictions about Digital Transformation
… 75%of the companies in the S&P 500 in 2027 will be new ones.4)
The sharing economy will grow
3,000%from 2015 to 2030.3)
78%of employees say it is very
important to work for a digitally enabled company
or a digital leader.1)
By 2025, there will be
10global virtual currencies that will be considered mainstream.5)
The Internet of Things will have a potential economic
impact of $4 trillion to
$11 trillion a year in 2025.2)
1) MIT Sloan Management Review, Is Your Business Ready for a Digital Future ? McKinsey & Company, 2) Unlocking the potential of the Internet of Things. 3) SAP Center for Business Insight 2015 calculation based on PwC, The sharing economy – sizing the revenue opportunity. 4) Seeking Alpha, Increasing Churn Rate In The S&P 500 . 5) Startup Management, The Next 10 Years: 42 Macro Predictions in Cryptography, Blockchains and Consensus Protocols.
At the current turnover rate, …
This year’s event explores the impact of
Digital Transformation with a sharp focus on the next
wave of Digital Innovation.
5th SAP Business
Transformation
Summit
SAP Digital Experience
SAP Digital Boardroom
Smart VendingMachine Mobile Virtual
Reality
EYE RIDE –Virtual Reality
Digital UseCases
Make it your Digital ExperienceJoin us during the Breaks
SAP Business Transformation Summit
