What's The Biggest Barrier to Business Innovation? The Answer is Simple
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What’s The Biggest Barrier to Business Innovation?Timo Elliott, SAP Senior Director, Global Innovation Evangelist, October 2014
@timoelliott
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business leaders believe that customer experience is the next battleground
increase in operating margin in retail leveraging Big Data as the new resource
higher operating margin than the ones with poor employee engagement
higher sales & margins when effectively running a networked enterprise
71% 3X 60%
50%
There are lots of new business opportunities
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Cloud
Simplicity, time to value, speed to
outpace disruption
Mobile
The new de facto standard in business
interaction
Social
Connected businessand social networks
Analytics
Real-time analyticsfor behavioral and predictive insights
More than 60% of CEOs expect 15%–50% of their earnings growth in the next 5 years to come from technology-enabled business innovations.– McKinsey study, 2013
”“
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There are lots of new technology possibilities
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”“ 10.2% or $237B* of profits
are lost by top 200 global companies due to hidden costs of complexity
of standout CEOs intendto simplify operations
61%
Complex Business Processes
of executives said complexity of data is the
largest IT challenge
73%
Complex Technology
increase in profit margins from effectively
managing complexity
25 – 100%
Complex Decision Making
BCG 2010 IBM CEO Survey 2010 Forrester, 2013
*Global Simplicity Index, 2013
So what’s stopping us? Complexity.
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40% of executives worry that their organizations will not keep pace with technology change and lose their competitive edge.
– McKinsey study, 2013
”“
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Radical simplification is needed to unlock potential
Forrester IT Survey, 2013
72%Keep the lights on
Drive business innovationInnovationCustomer ExperienceEmployee EngagementResource OptimizationNetworked Business
Drivebusiness
innovation
Keep the lights on
ComplexityDecision MakingBusiness ProcessTechnology
28%
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SOCIALANALYTICS
MOBILEAPPLICATIONS
CLOUDNETWORKS
Making everything Simple
SIMPLE
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Simplify your Business Processes
Faster Process massive amounts
of data, and deliver information at
unprecedented speeds
SmarterRethink and envision entirely new ways and applications to run your
business
SimplerDramatically simplify
complex and expensiveIT architectures
Insight to actionContextual. Real-time. Closed-loop.
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Molson Coors
“Why we moved to BW on SAP HANA: the need to simplify”
“Just do it! It will be completely amazing. We get emails every day saying 'this is so cool’”
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Unilever
“if we knew what we know now, we would have started deploying HANA much earlier, because it’s so important for business!”
“We think it’s even more disruptive than we initially thought — we’ve only just started”
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Finance, Simplified
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Finance, Simplified
Today: Dynamic, on-the-fly reporting enables analysis & simulation of organizational
changes. Impact analysis is immediately available.
Before: Static, predefined aggregates
cannot handle structural changes within the organization.
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Finance, Reinvented
SAP Working Capital Analytics
SAP Cash Management
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Textile Rubber & Chemical Company
500 Employees, 4 internal IT staffBusiness Suite on HANA
Why SAP Suite on HANA? Because it simplified our SAP Landscape
With HANA Live, in 5 minutes we could see more information than we could in the last 7 months
”
“
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Simplify your Decision Making
IntuitiveResponsive, mobile-ready interfaces that adapt to all
devices
People-CentricWorkflows and
customization that correspond to the needs of
people, not systems
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© 2014 SAP AG or an SAP affiliate company. All rights reserved.
Simple User Experience
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© 2014 SAP AG or an SAP affiliate company. All rights reserved.
Simple User Experience
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Planned Cockpits Chief Financial Officer
Financial Close Manager
Cash Manager
Receivables Manager
Payables Manager
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Smart Business Cockpits
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Simplify your Technology
Public cloud
Human resourcesCustomersSuppliers
Managed cloud
SAP Business Suite
SAP BW
Marketplace
Apps built on SAP HANA Cloud
Partner ISV apps
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An Open Platform For Innovation
1,200Startups with SAP
HANA
2,000Software and tech
partners
3,000Service partners
4,000Solution resellers
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Weissbeerger Beer Analytics
Seamless Internet of Things, Cloud, Analytics, Social
New Applications, Made Simple
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22© 2014 SAP AG or an SAP affiliate company. All rights reserved.
Simplifying Business
BusinessOutcomes
Hyper-personalizeCustomer Experience
Plan & optimizeResources in Real-time
Engage & empowerWorkforce of the Future
Harness the intelligence ofNetworked Economy
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CUSTOMERENGAGEMENT
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80% of CEOs think they deliver a superior customer experience
Source: The New Yorker
-- but only 8% of customers agree.
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Reinvent Luxury Service
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Burberry
The benefits of the SAP HANA platform are significant with a hugely simplified footprint.
We’re putting the whole business on the SAP HANA Enterprise cloud ”
“
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Point of Sale Explorer
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Medtronic
Combine structured and unstructured data for
business value
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New Products & Services
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© 2014 SAP AG or an SAP affiliate company. All rights reserved. 32
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EMPLOYEEEMPOWERMENT
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Worldwide, Only 13% of Employees are Engaged at Work
Source: Gallup State of the Global Workplace Report
France
Mexico
Paraguay
Argentina
Ecuador
Peru
Venezuela
Honduras
Nicaragua
Uruguay
Bolivia
Dominican Republic
Chile
El Salvador
Colombia
Guatemala
Brazil
USA
Costa Rica
9%
12%
14%
16%
16%
17%
18%
19%
22%
22%
23%
23%
24%
24%
26%
26%
27%
30%
33%
65%
60%
59%
56%
70%
62%
60%
55%
53%
54%
58%
59%
58%
56%
61%
55%
62%
52%
53%
26%
28%
27%
28%
14%
21%
22%
26%
25%
24%
20%
18%
18%
20%
13%
19%
12%
18%
14%
Engaged
Not Engaged
Disengaged
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 37
Corporate Culture Transformation
SAP Jam has become the systemic social
glue that ties the organization together”
“
—Dan Pontefract, Telus
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Germany’s “12th Man” In World Cup — Big Data
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RESOURCEOPTIMIZATION
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Revealing Processes in Order to Optimize Them
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Smart Port Logistics
48
Closed-loop analytics
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THE NETWORK ECONOMY
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Networked economy: The next economic revolution
1850
Industrial economy
2020
Networked economy
1990
Internet economy
IT economy
1970
$0.36T
$12.10T
All figures are in Trillions; 1990 international dollars; Source: Department of Economics, UC Berkeley, BAIN 8 MacroTrends Brief.
$27.50T
Internal | © 2014 SAP SE or an SAP affiliate company. All rights reserved.
$90.0T
Grossworld
product
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The Ariba Network
SuppliersBuyers
ProcurementSales
FinanceLogistics
Supply ChainSustainabilityCompliance
Partners
More than 1M suppliers in more than 190 countries around the world
Transact with suppliers – the Network handles over $460 billion per year in commerce
Reduce supply costs – customers save a combined total of $82M daily
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Simplifying Business
BusinessOutcomes
Hyper-personalizeCustomer Experience
Plan & optimizeResources in Real-time
Engage & empowerWorkforce of the Future
Harness the intelligence ofNetworked Economy
55© 2014 SAP AG or an SAP affiliate company. All rights reserved.
Run simple.
Our vision for enterprise technology and business
SAP strategy
Run simple. = Cloud + SAP HANA
SAP Cloud powered by SAP HANA
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“I said SIMPLE, I didn’t sayEASY!…”
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Building complete solutions that best meet your needs
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For 11 lines of business For millions of SMEsFor 25 industries For consumers
Services and supportIndustry expertise
UX
Design thinkingValue engineering
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SO YOU CAN DO ANYTHING
SIMPLIFY EVERYTHING
THE WAY FORWARD IS SIMPLE
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Run simple.
Thank you
[email protected] @timoelliott