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Rakesh Gandhi / Pierre Erasmus / Ken Pierce / Stephan Brand, SAP
Succeeding with Industrial IoT –
Connecting Products, Assets, or Fleets
2© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC
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
3© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC
SAP provides highly innovative capabilities for the industrial Internet of Things (IoT) that extend the
digital core with adaptive applications, Big Data management, and connectivity to enable:
 New business processes
 New business models
 New work environments
SAP Leonardo IoT capabilities: Connect things with people and processes
3
4© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC
SAP Leonardo empowers Live Business by connecting things with people and processes
SAP provides an IoT solution portfolio with adaptive applications, Big Data management, and
connectivity, extending the digital core powered by SAP HANA to enable:
Efficient LED models New business models
SAP Leonardo: Strategy for the IoT
SAP Predictive Maintenance and
Service
8%–10% reduction in
maintenance costs
SAP Connected Manufacturing
+2700% throughput
SAP Connected Logistics
-50% inventory stock
Commercial fleet management
From importing, selling, and leasing cars to
business beyond; data-driven services of the car
and the driver close to transactional SAP
systems
Usage-based insurance
Individualized Insurance based
on driving behavior
End-to-end transport processes
Innovation lab using BPW trailer
telematics and SAP Vehicle Insights
as foundation (commercial, trucks,
and trailer …)
5© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC
SAP Leonardo
SAP Leonardo IoT Bridge
Product insights
Goods and equipment
Supply networks
Fixed asset insights
Manufacturing
execution
Manufacturing
networks
Mobile asset insights
Logistics safety
Logistics networks
Energy grids
Buildings
Construction
Market insights
Rural areas
Urban areas
People and work
People and health
People and homes
Connected
products
Connected
assets
Connected
fleet
Connected
infrastructure
Connected
markets
Connected
people
SAP Leonardo IoT Foundation
SAP Cloud Platform / SAP HANA platform
SAP Leonardo IoT
Edge
6© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC
SAP Leonardo: The big picture
PeopleSAP Leonardo IoT Bridge
Enterprise Management – the digital core
Things/physical layer
Products
“Things”
Procurement
R&D
Supply chain
planning
Manufacturing
Logistics
Sales
Aftersales
service
Processes
SAP Leonardo IoT Foundation
SAP Cloud Platform / SAP HANA platform
SAP Leonardo
IoT Edge
Applications powered by SAP Leonardo
SAP Connected
Goods
SAP Connected
Manufacturing
SAP Global
Track and Trace
SAP Vehicle
Insights
SAP Predictive
Maintenance and
Service
SAP Asset Intelligence
Network
SAP Network
Logistics Hub
Platform
Applications
7© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC
 Design and manage smart products
lifecycle
 Connect, monitor, control, and
distribute products in the field
 Manage, track, and control inventory
across the networks
Connected products
SAP Connected Goods – SAP Supply Chain Control Tower
* Future release
8© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC
Decomission
Ideas
Geometries
Stress simulations
Cost
Production data
Quality fingerprint
Ramp up
. . .
Output
Performance
. . .
Issues
Cost
Profitability
Designs
. . .
. . .
. . .
Operation
The physical world
Production InstallationEngineering
The digital world
The industrial IoT starts with live engineering
Use case: Digital twin digital product lifecycle management with live insights
As designed As built As delivered As maintained
Closed-loop engineering
9© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC
Challenges
 Transparency on remote field device performance and
efficiency
 Loss of sales due to stock-outs
 Visibility to product utilization, misuse, theft, or
misplacement
 Ability to monitor goods storage conditions leading to
spoilages
 Regulatory compliance to track storage conditions such
as temp, humidity, …
IoT-driven trends
 Drive new business models (product-as-a-service) based
on usage and drive better revenue per unit device
 Gain higher availability and reduce unplanned downtime
with predictive service, and reduce cost impact due to
lost goods.
 Reduce spoilages for cold-chain scenarios
 Reduce cost and increase effectiveness of meeting
compliance needs
Connected products – goods and equipment
Connect, monitor, and control products in the field
Typical industry value benchmark*
10%–15%
Reduced unplanned downtime/outages
50%–70%
Reduced theft or misplacement loss
7%–10%
Reduced capital expenditure with better availability
and improved life
10%–15%
Reduced spoilage (% of rev)
10%–15%
New business model – increased revenue
10%–15%
Reduced revenue loss due to stock-outs (% of rev)
* Source: SAP Internal Value Benchmarks
10© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC
Challenges
 Have limited visibility over their supply chain
performance and the drivers
 Are unable to react in a timely manner to deviations
 Have multiple tools in place but no clear overview
 Have to contact multiple people before understanding
the situation, which is time consuming and cumbersome
 Need a lot of time to extract data from different systems
 Have no ability to simulate
IoT trends – supply networks
 Drive agile, data-driven s decision making related to
supply networks
 Empower users with full visibility into data from multiple
sources including IoT data
 Achieve better productivity and efficiency
Connected products – supply network
Manage, track, and control inventory across the networks
* Future release
11© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC
 Connect, monitor, and tightly control
manufacturing equipment
 Optimize asset performance throughout
its lifecycle
 Manage a network of assets to identify
and resolve issues before they happen
Connected assets
SAP Asset Intelligence Network – SAP Predictive Maintenance and Service
SAP Manufacturing Execution – SAP Manufacturing Integration and Intelligence
12© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC
SAP Leonardo – connected assets
The journey to capitalizing on value
“Blue” production
optimization stairway
7.1
Fully autonomous
operations
9.2
Economically optimal
production
8.4
Integrated asset
collaboration
9.1
Complete production
visibility
7.1Maximum asset utilization
7.0Optimized asset life
8.5Zero unplanned downtime
8.1
Accelerated problem
resolution
“Red” NPT avoidance
stairway
Customer value
assessments on a
1–10 scale
Source: GE O&G Customer Validation Interviews, September/October 2016, TCG Analysis, TCG Advisors LLC
Value
Time
13© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC
SAP Leonardo – connected asset use cases
Operational
effectiveness Asset collaboration
Manufacturing efficiency Field services
Predictive
Maintenance &
Services
Reduce maintenance costs
8%–10%
Predictive
Maintenance &
Services
9,000 miles of URDs
220,000 equipment assets
Reduced truck rolls resulting
in CAPEX reduction
OT- IT convergence
Better insights for better
decisions based on a
integrating operations and
business data
Asset Intelligence Network
Decreased
ALM costs
Increased
asset availability
Asset health monitoring
and maintenance
Manufacturing Integration
&
Intelligence
Manufacturing Integration
& Intelligence
65%–80%
improved
overall equipment
effectiveness
$60M–$180M annual
energy savings
15 refineries
14© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC
 Collect, map, store, and analyze fleet
and vehicle data in real time
 Perform safety analysis of drivers and
assets to reduce accidents and improve
safety
 Maximize your logistics strategy and
comply with regulations across the
global network
Connected fleet
SAP Leonardo
15© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC
Machine learning
Flexible
integration
Analytics
UI
building
blocks
APIs
Innovative
visualization
Cars
New business models
Process
automation
System
integration
connecting people, vehicles, and businessIntelligently
Busses
Forklifts
Trucks
In-/outbound
messaging
MQTT
Spatial analysis
16© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC
Broad variety of scenarios – reimagine the world of moving assets
Remote vehicle diagnostics Usage-based insuranceFleet analytics
MobilityCommercial fleet managementConnected logistics and delivery
17© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC
SAP Vehicle Insights – services
SAP Vehicle Insights – services
Vehicle master
data service
Time series
store service
Inbound data
service
Analytics cube
service
Trip calculation
service
Route analysis
service
Data integration
services
Geo services
Many, many
more services
Fleet Logistics Mobility
Fleet monitoring Forklift analytics Ride sharing Customer appPartner app
Data storage services Data analytics services Geo and map services
Run Build
Thank you.
19© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC
Key take-aways
Why SAP
IoT Is key strategic pillar for SAP
SAP commitment – €2B investment until 2020 – press release link
125+ customers deploying with IoT solutions and platform from SAP
Extensive IOT capabilities: IoT apps
solutions, microservices, and platform
Advanced IoT apps on SAP Cloud Platform/SAP HANA platform enhanced
with strategic acquisitions
Plat.one: Accelerate IoT platform innovation
Fedem: Digital twin
Altiscale: E2E capabilities including Hadoop data storage
Faster time to value
SAP provides deep industry expertise for end-to-end packaged applications
for the IoT
SAP Leonardo accelerator packages – paid pilot and IoT labs to enable
customer success
Extensive ecosystems Strategy SI partners: Accenture, EY, and others
Extensive IoT ISV partners and OEMs: Intel, Dell, Siemens, and others

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SAP Leonardo succeeding with industrial iot

  • 1. PUBLIC Rakesh Gandhi / Pierre Erasmus / Ken Pierce / Stephan Brand, SAP Succeeding with Industrial IoT – Connecting Products, Assets, or Fleets
  • 2. 2© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 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
  • 3. 3© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC SAP provides highly innovative capabilities for the industrial Internet of Things (IoT) that extend the digital core with adaptive applications, Big Data management, and connectivity to enable:  New business processes  New business models  New work environments SAP Leonardo IoT capabilities: Connect things with people and processes 3
  • 4. 4© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC SAP Leonardo empowers Live Business by connecting things with people and processes SAP provides an IoT solution portfolio with adaptive applications, Big Data management, and connectivity, extending the digital core powered by SAP HANA to enable: Efficient LED models New business models SAP Leonardo: Strategy for the IoT SAP Predictive Maintenance and Service 8%–10% reduction in maintenance costs SAP Connected Manufacturing +2700% throughput SAP Connected Logistics -50% inventory stock Commercial fleet management From importing, selling, and leasing cars to business beyond; data-driven services of the car and the driver close to transactional SAP systems Usage-based insurance Individualized Insurance based on driving behavior End-to-end transport processes Innovation lab using BPW trailer telematics and SAP Vehicle Insights as foundation (commercial, trucks, and trailer …)
  • 5. 5© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC SAP Leonardo SAP Leonardo IoT Bridge Product insights Goods and equipment Supply networks Fixed asset insights Manufacturing execution Manufacturing networks Mobile asset insights Logistics safety Logistics networks Energy grids Buildings Construction Market insights Rural areas Urban areas People and work People and health People and homes Connected products Connected assets Connected fleet Connected infrastructure Connected markets Connected people SAP Leonardo IoT Foundation SAP Cloud Platform / SAP HANA platform SAP Leonardo IoT Edge
  • 6. 6© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC SAP Leonardo: The big picture PeopleSAP Leonardo IoT Bridge Enterprise Management – the digital core Things/physical layer Products “Things” Procurement R&D Supply chain planning Manufacturing Logistics Sales Aftersales service Processes SAP Leonardo IoT Foundation SAP Cloud Platform / SAP HANA platform SAP Leonardo IoT Edge Applications powered by SAP Leonardo SAP Connected Goods SAP Connected Manufacturing SAP Global Track and Trace SAP Vehicle Insights SAP Predictive Maintenance and Service SAP Asset Intelligence Network SAP Network Logistics Hub Platform Applications
  • 7. 7© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC  Design and manage smart products lifecycle  Connect, monitor, control, and distribute products in the field  Manage, track, and control inventory across the networks Connected products SAP Connected Goods – SAP Supply Chain Control Tower * Future release
  • 8. 8© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC Decomission Ideas Geometries Stress simulations Cost Production data Quality fingerprint Ramp up . . . Output Performance . . . Issues Cost Profitability Designs . . . . . . . . . Operation The physical world Production InstallationEngineering The digital world The industrial IoT starts with live engineering Use case: Digital twin digital product lifecycle management with live insights As designed As built As delivered As maintained Closed-loop engineering
  • 9. 9© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC Challenges  Transparency on remote field device performance and efficiency  Loss of sales due to stock-outs  Visibility to product utilization, misuse, theft, or misplacement  Ability to monitor goods storage conditions leading to spoilages  Regulatory compliance to track storage conditions such as temp, humidity, … IoT-driven trends  Drive new business models (product-as-a-service) based on usage and drive better revenue per unit device  Gain higher availability and reduce unplanned downtime with predictive service, and reduce cost impact due to lost goods.  Reduce spoilages for cold-chain scenarios  Reduce cost and increase effectiveness of meeting compliance needs Connected products – goods and equipment Connect, monitor, and control products in the field Typical industry value benchmark* 10%–15% Reduced unplanned downtime/outages 50%–70% Reduced theft or misplacement loss 7%–10% Reduced capital expenditure with better availability and improved life 10%–15% Reduced spoilage (% of rev) 10%–15% New business model – increased revenue 10%–15% Reduced revenue loss due to stock-outs (% of rev) * Source: SAP Internal Value Benchmarks
  • 10. 10© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC Challenges  Have limited visibility over their supply chain performance and the drivers  Are unable to react in a timely manner to deviations  Have multiple tools in place but no clear overview  Have to contact multiple people before understanding the situation, which is time consuming and cumbersome  Need a lot of time to extract data from different systems  Have no ability to simulate IoT trends – supply networks  Drive agile, data-driven s decision making related to supply networks  Empower users with full visibility into data from multiple sources including IoT data  Achieve better productivity and efficiency Connected products – supply network Manage, track, and control inventory across the networks * Future release
  • 11. 11© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC  Connect, monitor, and tightly control manufacturing equipment  Optimize asset performance throughout its lifecycle  Manage a network of assets to identify and resolve issues before they happen Connected assets SAP Asset Intelligence Network – SAP Predictive Maintenance and Service SAP Manufacturing Execution – SAP Manufacturing Integration and Intelligence
  • 12. 12© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC SAP Leonardo – connected assets The journey to capitalizing on value “Blue” production optimization stairway 7.1 Fully autonomous operations 9.2 Economically optimal production 8.4 Integrated asset collaboration 9.1 Complete production visibility 7.1Maximum asset utilization 7.0Optimized asset life 8.5Zero unplanned downtime 8.1 Accelerated problem resolution “Red” NPT avoidance stairway Customer value assessments on a 1–10 scale Source: GE O&G Customer Validation Interviews, September/October 2016, TCG Analysis, TCG Advisors LLC Value Time
  • 13. 13© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC SAP Leonardo – connected asset use cases Operational effectiveness Asset collaboration Manufacturing efficiency Field services Predictive Maintenance & Services Reduce maintenance costs 8%–10% Predictive Maintenance & Services 9,000 miles of URDs 220,000 equipment assets Reduced truck rolls resulting in CAPEX reduction OT- IT convergence Better insights for better decisions based on a integrating operations and business data Asset Intelligence Network Decreased ALM costs Increased asset availability Asset health monitoring and maintenance Manufacturing Integration & Intelligence Manufacturing Integration & Intelligence 65%–80% improved overall equipment effectiveness $60M–$180M annual energy savings 15 refineries
  • 14. 14© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC  Collect, map, store, and analyze fleet and vehicle data in real time  Perform safety analysis of drivers and assets to reduce accidents and improve safety  Maximize your logistics strategy and comply with regulations across the global network Connected fleet SAP Leonardo
  • 15. 15© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC Machine learning Flexible integration Analytics UI building blocks APIs Innovative visualization Cars New business models Process automation System integration connecting people, vehicles, and businessIntelligently Busses Forklifts Trucks In-/outbound messaging MQTT Spatial analysis
  • 16. 16© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC Broad variety of scenarios – reimagine the world of moving assets Remote vehicle diagnostics Usage-based insuranceFleet analytics MobilityCommercial fleet managementConnected logistics and delivery
  • 17. 17© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC SAP Vehicle Insights – services SAP Vehicle Insights – services Vehicle master data service Time series store service Inbound data service Analytics cube service Trip calculation service Route analysis service Data integration services Geo services Many, many more services Fleet Logistics Mobility Fleet monitoring Forklift analytics Ride sharing Customer appPartner app Data storage services Data analytics services Geo and map services Run Build
  • 19. 19© 2017 SAP Leonardo Live. All rights reserved. I PUBLIC Key take-aways Why SAP IoT Is key strategic pillar for SAP SAP commitment – €2B investment until 2020 – press release link 125+ customers deploying with IoT solutions and platform from SAP Extensive IOT capabilities: IoT apps solutions, microservices, and platform Advanced IoT apps on SAP Cloud Platform/SAP HANA platform enhanced with strategic acquisitions Plat.one: Accelerate IoT platform innovation Fedem: Digital twin Altiscale: E2E capabilities including Hadoop data storage Faster time to value SAP provides deep industry expertise for end-to-end packaged applications for the IoT SAP Leonardo accelerator packages – paid pilot and IoT labs to enable customer success Extensive ecosystems Strategy SI partners: Accenture, EY, and others Extensive IoT ISV partners and OEMs: Intel, Dell, Siemens, and others