Automotive the innovation_driven enterprise

Industry Executive Overview
Automotive
The Innovation-Driven Enterprise
Executive
Summary
SAP Solutions SAP Innovations References Contact Us
© 2013 SAP AG

New Trends Driving Automotive Industry
The automotive industry faces new challenges  and opportunities for growth:
geopolitical and demographic changes, sustainability, enterprise mobility,
responsive supply networks, shortened development cycles, and more savvy
customers.
Traditionally long lead times from product conception to production need to be reimagined as
automotive companies seek new ways to adapt and take advantage of changing market trends.
The strategic priority is to innovate faster, increase efficiency across business operations, and
manufacture the vehicles that customers want.
To better satisfy customers’ changing needs and tastes, automotive companies need to transform
into agile businesses that bring desirable new products to market quickly and profitably  while
delivering customer value.
SAP offers solutions, best practices, and technology to orchestrate your key business processes 
so you can focus on becoming a profitable, best-run company.
“Big Data”, cloud computing, mobile solutions, and analytics applications support the market-driven
transformation required to prosper, integrating and accelerating business throughout the automotive
value chain.
Find out how leading automotive companies take advantage of SAP technology and solutions to
become consumer driven and power their growth.
Executive
Summary
The Innovation-Driven
Enterprise
Market Situation
Transformation Through
Technology Innovation
Business Priorities
SAP Innovations
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Transforming Automotive
To successfully grow market share automotive companies must:
 Accelerate innovation
 Enable collaboration and real-time insight
 Manufacture efficiently, profitably, and sustainably and avoid disruption
 Deliver a customer-centric buying and ownership experience
The ability to increase capacity, enhance quality, cut costs, streamline the supply
chain, and accelerate the launch of desirable vehicles is key to growing market
share.
Best-Run Automotive
Executive
Summary
3 / 42 © 2013 SAP AG
Enterprise
Market Situation
Business Priorities
SAP Innovations

Best-Run Automotive Priorities
Best-run automotive companies meet or exceed their target metrics by focusing on
the entire internal and external business lifecycle. This includes tracking all key
performance indicators across engineering, manufacturing, sales, and service
activities.
Understanding the value drivers for these priorities is key to becoming a best-run
automotive company.
 Collaborative Product Innovation
 Manufacturing and Logistics
 Responsive Supply Networks
 Marketing Sales and Aftermarket
 People and Talent
 Finance
 Procurement
 IT Management
Executive
Summary
Enterprise
4 / 42 © 2013 SAP AG
Market Situation
Business Priorities
SAP Innovations

Executive
Summary
5 / 42 © 2013 SAP AG
Enterprise
Market Situation
Business Priorities
SAP Innovations
For over 40 years, SAP’s innovations have helped companies transform and achieve the goals
they never thought possible – making more-informed decisions and innovating to lead in new
markets. SAP enables the real-time enterprise, empowers new experiences, and unwires the
business.
Enable the Real-Time Enterprise
SAP’s integrated, real-time analytical, predictive, and in-memory database solutions improve the
business value of your information and optimize business outcomes.
Empower New Experiences
The SAP software solutions allow you to deliver simple, elegant, real-time applications rapidly
across any device, with the superior consumer-grade experience users have come to expect.
Unwire the Business
Connect with your customers, partners, and employees efficiently and securely with a market-
leading mobile platform and device management technologies from SAP.
Business Transformation Through Technology
Innovation
Revenue growth and profit are no longer sufficient benchmarks for success. In
today’s economy, companies need to stand out in crowded and highly competitive
markets. The pace of business is relentless, where today’s innovation becomes
tomorrow’s status quo. Organizations that embrace technology can transform to
gain a significant advantage rapidly over the competition.

SAP Innovations
Automotive companies need to leverage technology in order to accelerate the pace
of innovation. Big Data, analytics, enterprise mobility, and cloud computing are all
key to the cost-effective delivery of sales and service excellence.
SAP is investing heavily in the future of five distinct technology areas: applications, Big Data,
analytics, mobility, and cloud computing. Integrated throughout the enterprise, these technologies
can help transform automotive companies. When you can innovate faster, increase quality,
manufacture efficiently, and deliver excellent sales and service, you can increase profitability and
gain competitive advantage.
Accelerating the pace of innovation requires insight and improved collaboration. SAP solutions for
mobility and cloud computing extend your work platform and provide a flexible, secure working
environment for global teams.
Becoming more agile and efficient while avoiding disruptions across the extended value chain
depends on close scrutiny of your key performance metrics. Running real-time analytics with the
SAP HANA platform helps make the best use of all data, no matter the source. And the ability to
exploit Big Data can be critical to successful customer interactions.
Executive
Summary
6 / 42 © 2013 SAP AG
Enterprise
Market Situation
Business Priorities
SAP Innovations

Automotive Value Map
SAP solutions can drive automotive industry transformation.
Product Innovation
SAP Solutions
Manufacturing and Logistics
Marketing, Sales and
Aftermarket
Responsive Supply Networks
People and Talent
Procurement
Finance
Technology Solutions
IT Management
Technology
Solutions
Aftermarket
Dealer Business Management
Vehicle Sales Management
Customer Service, Support, and
WarrantyManagement
Application Develop-
ment and Integration
SAP HANA Platform
Collaborative Product
Innovation
Continuous Product and
Service Innovation
Integrated Product Development
for Discrete Industries
Embedded Product
Compliance
Manufacturing and
Logistics
Operational Procurement and
Inbound Logistics for Direct Material
Lean Manufacturing
Make to Order
Outbound Logistics
Responsive Supply
Networks
Service Parts Management
Transportation Management
Supply Chain Execution
People and
Talent
Core Human Resources
and Payroll
Talent Management
Time and Attendance
Management
Workforce Planning and
Analytics
Finance
Financial Performance
Management
Accounting and
Financial Close
Treasury and Financial
Risk Management
Collaborative Finance
Operations
Enterprise Risk and
Compliance Management
Procurement
Supplier Discovery and
Lifecycle Management
Strategic Sourcing and
Contracting
Procurement and Order
Collaboration
Collaborative Invoice
to Pay
Commodity Management
IT Management
Application Lifecycle
Management
IT Infrastructure
Management
IT Portfolio and Project
Management
IT Service Management
IT Strategy and
Governance
Multichannel Marketing Management
Enterprise Mobility
Consumer
Experience
Data ManagementAnalytics
3D Business
Visualization
7 / 42 © 2013 SAP AG
Executive
Summary

34%
Higher new product revenue
(as % of total revenue) for
organizations that drive
growth with continuous
innovation
Source: SAP Performance
Benchmarking
Collaborative Product Development
With intense global competition and ever-increasing
customer demands, the ability to bring high quality,
innovative products to market rapidly has become the
key differentiator driving success for companies in the
automotive industry.
The pace of innovation is accelerating. We have
swiftly changed gears from the age of
components to the age of innovative systems.
Today, 80% of new innovation in automobiles is
in electronics.
Customers now want a vehicle experience that
goes beyond mere transportation. Desirable
vehicles feature new technologies as standard
inclusions.
With an automotive environment made up of
global platforms and products that are designed
and engineered by global teams, automotive
companies need global access. This means
driving high levels of collaboration and the
ability to share data in real time.
While trying to improve operational efficiencies,
you also need to manage increasing safety
standards and stringent environmental
mandates. Vehicles must now meet new and
evolving safety standards, consume less fuel,
produce less pollution, and leave a smaller
carbon footprint.
SAP Solutions
Priorities
SAP Solutions
Executive
Summary
Product Innovation
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14%
Shorter time to market for new
products in organizations that
institute formal product life-
cycle management process
Benchmarking
Benefits
 Accelerate time to market
 Increase global collaboration
 Unify consistent data
 Improve quality
 Streamline design changes
Collaborative Product Innovation
Deliver high quality, innovative, desirable vehicles, and accelerate time
to market.
Leverage software for global product design and engineering teams to collaborate
and innovate in real time, and improve agility to master unexpected challenges.
SAP Solutions
Priorities
SAP Solutions
Executive
Summary
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Product Innovation
Continuous
Product and
Service Innovation
Continuous product and service innovation can help you become more competitive,
achieve profitable growth, and shorten time to market.
Integrated Product
Development for
Discrete Industries
Integrated product development can shorten the product development cycle,
increase collaboration, minimize material costs, and enable a consistent and
accurate source of product data.
Embedded Product
Compliance
Embedded product compliance helps safeguard revenue and brand value by
supporting the required information management and compliance controls in an
end-to-end process.

10%
Lower manufacturing cost
(% of total revenue) for
organizations where execution
systems and shop floor are
integrated with enterprise
applications
Benchmarking
Under intense competitive pressure, automotive
manufacturers need to reinvent themselves. Best-run
companies deliver more performance by optimizing
manufacturing processes, reducing inventories, and
synchronizing logistics processes.
Productivity and manufacturing efficiency are
critical to achieving profitability in the auto-
motive industry. Compressed production
schedules, uncertainty and risk in the supply
chain, more stringent government regulations,
and increasingly demanding customers all
create the imperative to operate with speed
and flexibility.
Best-run automotive manufacturers achieve
efficiency by aligning stakeholders and
processes across engineering, supply chain,
and manufacturing to create an integrated team
that can swiftly respond to shifting requirements
and demand signals.
The result? You can increase manufacturing
efficiency, minimize or even eliminate waste,
improve manufacturing asset use, and contain
product inventories – all to lower the cost of
manufacturing. Plus, you can produce high
quality, desirable vehicles and increase
profitability.
SAP Solutions
Priorities
SAP Solutions
Manufacturing and
Logistics
Executive
Summary
10 / 42 © 2013 SAP AG

67%
Of automotive companies do
not have automated line
design, line balancing, demand
management, lean execution,
and kanban management
Benchmarking
Benefits
 Reduce manufacturing costs
 Increase efficiency
 Reduce inventories
 Improve control and execution
 Synchronize manufacturing and supply
Manufacture and distribute products efficiently and cost effectively.
Drive profitability and win market share. Innovate and build high-quality products
and vehicles that consumers want by adopting proven automotive best practices.
Priorities
SAP Solutions
11 / 42 © 2013 SAP AG
SAP Solutions
Executive
Summary
Manufacturing and
Logistics
Operational
Procurement and
Inbound Logistics
for Direct Material
Connect all supply processes across all departments to enable an efficient supply
process.
Lean
Manufacturing
Reduce build time, ensure effective use of production capacity, and minimize
unproductive labor and resource consumption.
Make to Order Enable manufacturing visibility and flexibility to produce highly variant products.
Outbound Logistics Optimize the flow of goods by matching demand and supply.

7%
Higher forecast accuracy for
organizations that collaborate
with external business partners
(contract manufacturer,
suppliers, and so on)
Benchmarking
Automotive companies depend on a complex and
interdependent, multitiered global supply network.
Best-run automotive companies collaborate transparently
across the supply chain to reduce costs, optimize plans,
and avoid disruption.
Automotive OEMs and suppliers face ever-
increasing complexity and interdependence in
their global supply chains. Tremendous volatil-
ity – both in the availability of raw materials and
in price fluctuations – constantly challenges the
efficacy of this supply chain.
To mitigate these pressures without increasing
the cost to the consumer, you are compelled to
focus on integrating your supply chains. You
need to create transparency so you can
respond to variances in supply and price as
well as recognize and mitigate supply chain
events that could disrupt the flow of materials.
By leveraging clear insight, you can take
advantage of emerging opportunities.
Early and accurate understanding of
performance and risk is critical to enabling the
optimal flow of materials to production. Only
companies with this accurate and early insight
will be better positioned to drive operational
excellence.
Priorities
SAP Solutions
SAP Solutions
Executive
Summary
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11%
Lower transportation spend
(% of revenue) for organizations
that collaborate with contractors
and suppliers to get visibility into
supply situation
Benchmarking
Benefits
 Optimize supply chain performance
 Increase efficiency
 Manage transportation activities and spend
 Mitigate risk and volatility
 Improve service levels and reduce costs
 Ensure smooth material flows
Optimize efficiency and drive down cost and risk in global supply networks.
Integrate supply chain processes and networks to deliver real-time visibility into
key performance metrics that help you detect and avoid risks.
Priorities
SAP Solutions
13 / 42 © 2013 SAP AG
SAP Solutions
Executive
Summary
Service Parts
Management
Service parts management provides real-time visibility into service parts inventory
to meet customer service levels, maximize inventory turnover, and minimize costs.
Transportation
Management
Transportation management helps you manage spend and optimize accurate order
fulfillment by integrating all aspects of the transportation process.
Supply Chain
Execution
Supply chain execution enables you to integrate the business processes required
to manage activities related to supply, inventory, and demand for better visibility.

16%
Of organizations have a
360-degree view of customers
to optimize interactions in
marketing
Benchmarking
Marketing, Sales and Aftermarket
Automotive customers are sophisticated, well informed,
and have high expectations of the purchasing and
ownership experience. Best-run automotive companies
leverage 360-degree views of customers and vehicles
to meet these expectations.
Competition for market share is at an all-time
high with unprecedented pressure to increase
customer satisfaction and make sales and
service processes more efficient. While there’s
enormous growth potential in emerging markets
as they rapidly expand, mature markets
continue to stagnate. Customers have access to
more information and choice than ever before
and are becoming increasingly fickle and brand
agnostic.
With customers tending to keep their vehicles
longer in mature markets, the erosion of new
vehicle sales opportunities is counterbalanced
by new opportunities to build servicing and
repair business outside of the initial warranty
period.
It is therefore more crucial now to leverage
customer-centric systems that provide visibility
into all aspects of the buying and ownership
experience, based on a complete view of both
customers and vehicles.
Priorities
SAP Solutions
SAP Solutions
Aftermarket
Executive
Summary
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14%
Higher customer satisfaction
for top 25% of organizations
compared to average
organizations
Benchmarking
Benefits
 Increase market share
 Improve customer satisfaction
 Increase customer loyalty
 Deliver positive customer experiences
 Improve sales and service profitability
 Enhance your customer and vehicle
knowledge
Marketing, Sales and Aftermarket
Increase customer satisfaction, retention, and market share.
Excellence in sales and service operations requires a 360-degree view of vehicles
and customers in order to deliver a positive buying and ownership experience.
Priorities
SAP Solutions
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SAP Solutions
Executive
Summary
Aftermarket
Dealer Business
Management
Enable customer-centric and efficient dealership operations with horizontal and
vertical process integration.
Vehicle Sales
Management
Deliver full visibility throughout the entire vehicle distribution chain.
Customer Service,
Support, and
Warranty
Management
Provide outstanding service and support to differentiate your company from
the competition and build true brand advocates among your customers.
Multichannel
Marketing
Management
Leverage customer segmentation strategies and target marketing tactics to
grow market share.

32%
Lower employee turnover
driven by analyzing workforce
data to design, implement,
monitor workforce
optimization strategies
Benchmarking
People and Talent
Effectively aligning business strategy and execution for
a competitive edge requires the best people and talent.
Best-run automotive companies leave the competition
behind and achieve profitable growth by utilizing world-
class talent.
To take advantage of the unprecedented
changes and opportunities in the automotive
industry, you need well-tuned strategic thinking
and expertise.
Leading automotive companies deftly place the
right talent in the right positions to gain unique
advantage in the marketplace.
It’s not just a matter of hiring and then retaining
the right talent, but also providing employees
with the knowledge, insight, and technology to
deliver innovation.
Automotive companies need to shift gears to
take advantage of new markets, adapt to local
business practices, and secure the best local
talent.
Mergers and acquisitions also provide a rich
source of experienced and available talent that
can help you succeed.
People and Talent
Priorities
SAP Solutions
SAP Solutions
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Executive
Summary

38%
Lower costs for HR
organizations with tight
internal integration compared
to organizations with
fragmented HR environments
Benchmarking
Benefits
 Align employees with business strategies
 Support expansion into new global markets
 Improve engagement and productivity
 Provide real-time insight into business
needs
People and Talent
The new technology worker.
Increase employee value and satisfaction by combining global capabilities and
real-time insight with mobile device support to improve business performance.
People and Talent
Priorities
SAP Solutions
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SAP Solutions
Executive
Summary
Core Human
Resources and
Payroll
Consolidate HR and payroll processes on a common global platform to
enhance access to workforce data and improve legal compliance.
Talent
Management
Improve strategic alignment of resources, increase productivity, and accelerate
results by identifying, developing, motivating, and retaining talent.
Time and
Attendance
Management
Streamline time management processes, enhance resource effectiveness,
and better control labor costs.
Workforce
Planning and
Analytics
Identify and understand talent gaps and streamline workforce planning
to more effectively balance workforce demand and availability.

59%
Lower finance cost (% of
revenue) for top 25% of
organizations compared
to average organizations
Benchmarking
Finance
With sustained market volatility and growing pressure on
margins, finance organizations must have best practices
in place and keep a finger on the pulse of the business
with up-to-the-minute financial insight delivered anytime,
anywhere.
The automotive industry is undergoing a period
of unprecedented change. Twentieth-century
business practices are imploding under the
weight of inefficient management processes,
poor visibility, and disparate and unwieldy
software applications.
The scale of change has forced automotive
professionals to look at the big picture and
replace guesswork with real-time data and
analytical insight to make more informed and
strategic decisions.
CEOs expect their finance executives to take a
more strategic role in creating greater value for
their companies to cut costs, conserve cash,
and reduce debt.
To meet these expectations, finance executives
must balance stewardship with innovation and
cautious entrepreneurship. They also need to
recognize and assess the big picture, while
maintaining incredible attention to detail.
Finance
Priorities
SAP Solutions
SAP Solutions
Executive
Summary
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76%
Higher operating margin
(in %) where financial systems
provide historical and forward-
looking views into financial and
operational performance
Benchmarking
Benefits
 Ensure regulatory compliance
 Achieve effective risk management
 Outperform financial objectives
 Create sustainable value
 Deliver superior service at a reduced cost
Finance
Best practices help financial organizations excel.
Achieve financial excellence and use 360-degree processes to create competitive
advantage.
Finance
Priorities
SAP Solutions
19 / 42 © 2013 SAP AG
SAP Solutions
Executive
Summary
Financial
Performance
Management
Automate key business processes across your enterprise to increase efficiency,
effectiveness, and service – all at a lower cost.
Accounting and
Financial Close
Automate risk, compliance, and international trade activities to ensure regulatory
compliance and effective risk management.
Treasury and
Financial Risk
Management
Leverage data and analytics to plan and manage budgeting and strategy.
Collaborative
Finance Operations
Accelerate financial close across global enterprise locations.
Enterprise Risk and
Compliance
Management
Proactively identify the sources of financial data, while identifying risks and shortfalls.

30%
Higher average annual
savings for organizations that
operate a single, integrated
procurement system
Benchmarking
Procurement
While companies often focus on revenue, procurement
savings can increase profits about five times more.
The key to maximizing procurement’s success in this
critical role is to deliver consistent quality, savings, and
compliance over time.
Procurement leaders set a baseline for success
by implementing best practices, excelling in
category expertise, and working with key
stakeholders on cost control programs.
While savings is always a priority, new
objectives have emerged as well. Procurement
must manage supplier risk and performance,
improve process efficiency, drive innovation,
and ensure sustainability practices.
You need solutions that give you the tools to
cut costs as well as add value, supporting
processes including spend analysis, sourcing,
contract management, operational procure-
ment, supplier information management, and
risk and performance management – available
both on premise and in the cloud.
These tools, when coupled with an unparalleled
collaborative business network, drive real-time
insight and efficiency that can only be delivered
through the power of “many.”
Procurement
Priorities
SAP Solutions
SAP Solutions
Executive
Summary
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11%
Higher strategically managed
direct spend for organizations
that operate a single,
integrated procurement
system
Benchmarking
Benefits
 Optimize spend under management
 Increase average annual savings
 Decrease FTEs per billion in spend
 Drive innovation with suppliers
 Reduce cost and risk with faster turnaround
Procurement
Drive sustainable savings while supporting innovation.
Help ensure best practices in the source-to-pay process, on premise or in the
cloud, while leveraging the power of network collaboration for efficiency and insight.
Procurement
Priorities
SAP Solutions
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SAP Solutions
Executive
Summary
Supplier Discovery
and Lifecycle
Management
Find new suppliers through the Ariba Network, and manage these relationships through
supplier management solutions.
Strategic Sourcing
and Contracting
Identify and act on sourcing opportunities and create favorable, low-risk supply contracts.
Procurement and
Order Collaboration
Realize savings with compliant, user-friendly, self-service procurement. Collaborating on the
Ariba Network makes transactions more efficient.
Collaborative Invoice
to Pay
Drive invoice automation and exception management with available dynamic discounting
on the Ariba Network.
Commodity
Management
Limit the impact of commodity price volatility, automate price calculations, gain visibility,
and manage risks.

34%
Higher IT spend on strategic
initiatives for organizations
where IT architecture is an
integral part of top-management
business planning
Benchmarking
IT Management
Automakers and suppliers need to align IT with their
business goals – to transform their IT organizations
into a strategic business partner. Business-oriented IT
management is all about maximizing efficiency and
responsiveness.
According to a recent study by Gartner, in an
increasing number of companies, the IT
organization is not alone in deciding to invest
in IT projects. Other business units are now
involved in driving IT investment decisions
based on their business value.
In many organizations, IT management is
typically a matter of managing the technical IT
landscape and systems. Yet new technologies
such as mobility, in-memory, and cloud
computing can bring value to the business in an
unprecedented way. They can also make your
IT landscape more complex and require
additional IT management tools to support
them.
To master the business of IT, automotive
companies need to adopt best practices and
leverage a portfolio of solutions to ensure
efficiency, business continuity, and
responsiveness. With a new generation of
technology from SAP, your IT organization can
become more relevant and add strategic value
to the enterprise.
IT Management
Priorities
SAP Solutions
SAP Solutions
Executive
Summary
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23%
Lower IT spend as % of
revenue for organizations that
have established enterprise-
wide streamlined IT and
business process standards
Benchmarking
Benefits
 Align IT spend with business strategy
 Shorten IT delivery cycles
 Reduce IT maintenance budget
 Minimize cost of system upgrade
 Reduce cost of risk mitigation
 Reduce downtime of business processes
IT Management
Evaluate and control IT risk, ensure flexibility and scale, control and optimize
IT costs, and maximize strategic value from technology.
Align IT spend with business priorities, drive efficiency, increase responsiveness,
and ensure business continuity with a new generation of technology from SAP.
SAP Solutions
23 / 42 © 2013 SAP AG
IT Management
Priorities
SAP Solutions
Executive
Summary
Application Lifecycle
Management
Implement application lifecycle management processes, methodologies, and services to
reduce total cost of ownership.
IT Infrastructure
Management
Identify and monitor all network assets and drive an integrated infrastructure and application
lifecycle process.
IT Portfolio and
Project Management
Manage portfolios and projects from start to finish, drive innovation, and develop cross-
functional processes across disparate systems.
IT Service
Management
Align your service desk operations with service-level agreements.
IT Strategy and
Governance
Automatically track and manage costs and risk across your IT landscape.

4
“Cloud, social networking,
mobility and the strategic use
of information are the four
forces that combine to create
a new era of computing and
new opportunities for
business.”
Source: Gartner, “SAP Is Driving
Analytics, Cloud and Mobility in the
Nexus of Forces,” Donald Feinberg,
August 24, 2012
Automotive companies must drive business
transformation through technology innovation.
Organizations will thrive by improving access
to information and unwiring their businesses to
innovate with customers, partners, and employees.
As automotive professionals become more
sophisticated users of data, their needs
escalate. Up-to-the-minute insights, predictive
analysis, and real-time access to applications
from the latest mobile devices are all standard
requirements. They expect all of these
capabilities to seamlessly integrate with their
preferred social platforms. The number of users
expecting access is growing rapidly.
At the same time, data volumes are exploding,
while the window to capitalize on opportunities
is shrinking. Automotive companies must
leverage the available information and
insights in an entirely new class of real-time
applications.
Developers must have a platform they can use
to innovate faster than ever before.
To speed ahead, auto manufacturers and
suppliers must drive transformation through the
innovative use of technology and enable the
real-time enterprise to improve the value of
information.
Priorities
SAP Solutions
SAP Solutions
Executive
Summary
24 / 42 © 2013 SAP AG

20%
“Through 2015, organizations
integrating high-value,
diverse, new information
types and sources into a
coherent information
management infrastructure
will outperform their industry
peers financially by more than
20%.”
Source: Gartner, “Hype Cycle for
Information Infrastructure, 2012,”
Michael Blechar, July 31, 2012
Benefits
 Operate your business in real time
 Reduce time to value and speed up
innovation
 Turn data into an enterprise asset
 Unwire business to support innovation,
engagement
Drive change and help your business thrive.
Enable the real-time enterprise by improving the value of information across
the business with timely and predictive analytics – and unwire your employees,
customers, and partners to collaborate and innovate more rapidly.
SAP Solutions
25 / 42 © 2013 SAP AG
Executive
Summary
Priorities
SAP Solutions
Analytics Increase the value of data with real-time and predictive analytics and business intelligence.
Data Management Manage critical data with scalability and performance.
Application
Development and
Integration
Develop applications and innovation rapidly in a mobile, always-on world of collaborative
business networks for secure, cloud-scale applications.
Enterprise Mobility Unwire your employees, customers, and partners with proven, highly rated mobile solutions.
Consumer
Experience
Use real-time applications to increase productivity and competitiveness.
3D Business
Visualization
Reduce complexity, increase productivity, and improve quality with 3D-enriched processes
and decision making.
SAP HANA Platform Streamline applications, analytics, planning, and predictive and sentiment analysis on a
single platform based on in-memory technology.

65%
Of companies believe that the
cloud will amplify and accelerate
other technology trends such as
enterprise mobility, Big Data,
and analytics
Benchmarking
With tough economic conditions and stagnant mature markets, automotive companies need to
increase efficiency across the entire product lifecycle by speeding up product innovation times,
improving quality, manufacturing profitably, and better satisfying customers.
Data-driven knowledge is instrumental in driving a strategic advantage through more relevant and
highly targeted marketing. With Big Data and powerful analytics, automotive companies can turn
terabytes of information into a clear insight and competitive advantage.
At the same time, mobile apps are enabling every aspect of your business to fun faster and more
efficiently by providing employees with access to critical intelligence anytime, anywhere.
Cloud computing is providing new ways to unlock extraordinary potential that allows businesses to
run faster and better.
SAP has been a leader in business IT innovation for 40 years. Today, new technologies will enable
automotive businesses to better understand the needs of customers and ensure that business users
have access to the insight they need to improve every aspect of enterprise operations.
SAP Innovations
Ever-increasing consumer demands and global
competition are driving dramatic changes in the
automotive industry. To take advantage of new market
dynamics, automotive companies need to embrace
technology innovations that drive differentiation,
competitive advantage, and market share.
Applications
SAP Innovations
SAP HANA
Mobile
Analytics
Cloud
Executive
Summary
26 / 42 © 2013 SAP AG

Use SAP HANA to drive better, more efficient manufacturing and logistics processes and eliminate
errors and disruptions. Achieve immediate access to complex inventory management data. With
real-time inventory monitoring and management, you can reduce inventory and safety stock levels
while avoiding out of stock disruptions.
Cut costs with comprehensive and up-to-the-minute transparency on material demand and supply
so that you only purchase materials and produce and distribute products when they’re actually
required.
Enhance supplier collaboration with immediate updates on demand. Optimal collaboration and
data sharing with suppliers drives the ability to optimize products and processes. Synchronize
demand and supply for global planning.
Analyze and monitor vast amounts of data continuously and in real time to react to demand and
supply volatility and maximize supply chain reliability and efficiency. Simulate “what if” scenarios in
real time. By rapidly processing and analyzing information, you can gain competitive advantage by
identifying customer trends and ways to improve manufacturing efficiency.
SAP Business Suite Powered by SAP HANA
SAP Business Suite software powered by SAP HANA
enables automotive companies to optimize manufacturing
and logistics processes by better managing material
inventories and balancing supply with demand for
innovative vehicles and products that meet or exceed
customers’ expectations – all at optimal cost.
SAP Innovations
Executive
Summary
27 / 42 © 2013 SAP AG
Applications
SAP HANA
Mobile
Analytics
Cloud

Global Engineering
Process vast amounts of data to collaboratively speed up innovation, accurately determine cost,
improve quality, and meet regulatory requirements, so you can reduce time to market for products
that customers want.
Manufacturing
Gain faster insight from the vast amounts of data generated in manufacturing activities. Big Data
solutions powered by SAP HANA can help improve operational efficiency and reduce
manufacturing costs.
Global Supply Networks
Analyze and monitor vast amounts of data continuously and in real time to react to demand and
supply volatility and maximize supply chain reliability and efficiency.
Marketing, Sales, and Service
Leverage the insights available from Big Data to understand customer sentiment. Deliver positive
customer experiences by leveraging customer and vehicle data.
SAP HANA
An enormous amount of data is being generated and
collected every second – creating significant opportunities
for automotive companies. With SAP HANA, companies
have the ability to rapidly process and analyze information
for collaborative innovation, manufacturing efficiency, and
customer insight.
53%
Of organizations report a big
gap between the availability
of Big Data and their ability
to analyze it for insights
Benchmarking
Executive
Summary
Applications
SAP HANA
Mobile
Analytics
Cloud
SAP Innovations
28 / 42 © 2013 SAP AG

24%
Higher operating margins
where enterprise mobility is
embedded in all business
processes
Benchmarking
Mobile first. Consumers and businesses alike all turn to mobile first. Consumers research and
compare vehicles and make test-drive or service appointments. Businesses have untethered their
employees from offices and desks by extending their business processes to mobile devices.
Leveraging our mobile solutions can help you speed innovation and improve collaboration.
Manufacturing and Operations
Enhance the manufacturing process with fast and clear access to work instructions, changes in
production flow, and quality issues.
Supply Chain
Use mobile solutions to monitor and optimize your supply chain and ensure smooth delivery.
Rapidly respond to exceptions and possible disruptions, and increase your agility to quickly identify
and take advantage of new opportunities.
Sales and Service
Optimize the customer experience with information at the point of interaction with the customer,
Mobile
Mobile solutions makes business processes more
efficient, timely, and cost effective in the automotive
industry. Accessing actionable intelligence for engineer-
ing, manufacturing, supply chain, and sales and service
organizations, anytime and anywhere, drives true
competitive advantage.
Executive
Summary
Applications
SAP HANA
Mobile
Analytics
Cloud
SAP Innovations
wherever you are, whatever the time, and whatever the device.
29 / 42 © 2013 SAP AG

26%
Higher inventory turns with
warehouse analytics
Benchmarking
Automakers must leverage everything at their disposal to shift into the fast lane. Analytics solutions
from SAP provide visualization across relevant data to support optimal decision making.
Engineering
Use analytics to improve collaborative insight and support your engineering organization.
Allow engineers to visualize complex data to rapidly bring new, high quality products to market.
Manufacturing
Enhance operations by better utilizing plant assets. Identify production hot spots that need closer
attention and more efficiently align supply with demand.
Supply Chain
Provide greater visibility into the supply chain and enable a rapid collaborative response to
challenges and opportunities.
Marketing, Sales, and Service
Create a 360-degree understanding of customers and their vehicles to deliver a positive customer
experience.
Analytics
Turbo-charging your business performance requires
up-to-the-minute performance insight across your entire
business. Automotive industry-specific performance
analytics software helps you rapidly conquer your
diverse – and unique – challenges.
Executive
Summary
30 / 42 © 2013 SAP AG
Applications
SAP HANA
Mobile
Analytics
Cloud
SAP Innovations

65%
Of organizations believe
that cloud will amplify other
technology “megatrends” (for
example, mobility, Big Data,
analytics, and so on)
Benchmarking
SAP has invested in cloud solutions to help automotive companies change gears and optimize
and accelerate activities across the value chain. Cloud-based solutions, such as the SAP
StreamWork application, allow collaboration, discussion, and agreement across all automotive
processes.
Cloud-based solutions from SAP also support your end-to-end business processes on demand,
so you can benefit from process efficiency throughout engineering, manufacturing, supply chain,
and sales and service businesses while containing operational and deployment costs.
New business models built on, or enabled by, the cloud are transforming the automotive industry.
The connected car is an example of how cloud-based technology is opening up new business
opportunities and new ways to interact with customers. Cloud-based solutions from SAP deliver
new opportunities to enhance loyalty and speed up revenue optimization from commercial
vehicles. Cloud-based technologies can also be used to enhance the ownership experience for
customers who drive fuel-efficient, and environmentally-friendly passenger cars.
Cloud
The speed and flexibility offered by cloud computing
creates new opportunities for best-run automotive
companies. Cloud applications from SAP and the open
SAP HANACloud platform allow companies to build
differentiating vehicles, establish nimble global business
networks and connect faster and more directly with
customers.
Executive
Summary
31 / 42 © 2013 SAP AG
Applications
SAP HANA
Mobile
Analytics
Cloud
SAP Innovations

Best-Run Customers
SAP customers represent 79% of Global 500 companies.
SAP customers represent 85% of the top 100 most valued brands in the world.
Our customers manufacture more than 77,000 automobiles per day.
7 of the Forbes 50 Most Admired Companies in the World are SAP automotive
customers.
7 of the Forbes 100 Biggest Public Companies in the World are SAP automotive
customers.
Al-Mansour Automotive
Best-Run Customers
Dana Holding
TMHU
PSA Peugeot Citroën
Valeo
Why SAP?
Executive
Summary
32 / 42 © 2013 SAP AG

Customer Co-Innovation
SAP co-innovates with leading automotive companies using the global Automotive
Executive Advisory Council to drive priorities. Its member companies spur
co-innovations and enhancements across the entire automotive value chain.
Automotive Executive Advisory Council
The Automotive Executive Advisory Council enables C-level executives to discuss and guide new
business innovations, technologies, and best practices to support best-run companies.
Co-Innovation Partners
Co-innovation workgroups of the Automotive Executive Advisory Council focus on in-memory
computing, mobile solutions, and dealer business management in addition to engineering,
manufacturing, and sales and service topics.
45%
Of companies are regular
members of the Automotive
Executive Advisory Council
Executive
Summary
33 / 42 © 2013 SAP AG
Dana Holding
TMHU
Valeo
Why SAP?
Best-Run Customers

Al-Mansour Automotive Company is one of Egypt’s largest
importers, distributors, and retailers of motor vehicles, and
is the sole distributor of General Motors products.
The firm has a total market share of 27.7% and wanted to increase that
penetration via initiatives to generate more sales and improve service.
That’s why it turned to SAP Business Suite software and solutions from
the SAP for Automotive solution portfolio.
Key Benefits
 Enabled growth plans without commensurate increase in headcount
 Maintained highest operational key performance indicators of any
regional GM distributor
 Enhanced Inventory control
 Improved customer satisfaction
 Shortened distribution delivery times
Executive
Summary
34 / 42 © 2013 SAP AG
Dana Holding
TMHU
Valeo
Why SAP?
Best-Run Customers
Improved customer
satisfaction with
reduced delivery
times

Remarkable
productivity gains

Streamlined
processes and
workflow

Dana Holding Corporation, headquartered in Maumee, Ohio, is
a global supplier of engineering, manufacturing, distribution,
and service of drivetrain technologies, sealing systems, and
thermal management solutions.
Dana Holding Corporation chose the SAP ERP and the SAP Extended
warehouse applications to bring European aftermarket business in-house
after 10 years of outsourcing to improve service control and reduce costs.
Key Benefits
 Replacement of disparate systems with a single global solution
 A single integrated system to support the entire international
aftermarket distribution network
 Closer customer relationships with improved satisfaction and sales
 Greater visibility of operations to match supply and demand
 Reduced costs and improved service levels
Executive
Summary
35 / 42 © 2013 SAP AG
Dana Holding
TMHU
Valeo
Why SAP?
Best-Run Customers
6Months implemen-
tation time at
a new distribution
center with no
unplanned down
time for customers
15%
Improvement in
customer order
fill rate (from 80%
to 95%)
85%
Reduction in
customer orders
past due within
six months

PSA Peugeot Citroën is Europe’s second-largest automaker
and number seven globally, producing 3.2 million cars in 2009.
PSA Peugeot Citroën wanted to improve productivity in its 28 manu-
facturing facilities worldwide, 4 technical centers, and 1 tertiary site.
PSA replaced its legacy plant maintenance applications with the SAP
Enterprise Asset Management solution and developed standard
business processes based on best practices. In the next few years, the
solution will pay back PSA’s investment through heightened efficiency
and a better spare-parts list.
Key Benefits
 Achieved productivity and organizational improvement throughout
the plants
 Reduced spare parts inventory
 Eliminated data reentry
 Achieved productivity and quality targets
Executive
Summary
36 / 42 © 2013 SAP AG
Dana Holding
TMHU
Valeo
Why SAP?
Best-Run Customers
Improved
preventative
maintenance

Increase equipment
availability

Production
feedback loop to
engineering

As the country’s leading lift-truck supplier, Toyota Material
Handling U.S.A. Inc. (TMHU) supports independent dealers
nationwide.
TMHU chose SAP software including the SAP Customer Relationship
Management application to improve sales visibility and accuracy of dealer
sales quotations. TMHU also gained efficiency in order processing and
the management of its dealer discounts.
Key Benefits
 Increased win rates with integrated lead management, marketing,
and analytics
 Improved sales team productivity
 Improved accuracy of sales quotations
 Better visibility into sales pipelines and end-user pricing
 Significant savings due to eliminating variance in dealer discounts
Executive
Summary
37 / 42 © 2013 SAP AG
Dana Holding
TMHU
Valeo
Why SAP?
Best-Run Customers
15%Improvement in
market awareness
85%
Reduction in order
confirmation times
100%
Accuracy of sales
quotation and
dealer discount
spend

Part of the Paris-based Valeo Group, Valeo Service Benelux
B.V. supplies original equipment spare parts to automakers
and replacement parts to the independent aftermarket.
Valeo is aware that to maintain its strong market position, it needs to
constantly improve customer service and operational efficiency. Very
satisfied with its existing SAP ERP application, Valeo decided to
implement SAP warehouse management functionality. Having the
entire order-to-delivery process on a single platform would provide
the necessary degree of control and traceability.
Key Benefits
 Improved stock and replenishment accuracy
 Increased fill rate and eliminated second warehouse despite
25% increase in SKUs
 Improved order and delivery traceability and improved customer
satisfaction
 Paper-based picking replaced by mobile terminals with increased
accuracy and efficiency
Executive
Summary
38 / 42 © 2013 SAP AG
Dana Holding
TMHU
Valeo
Why SAP?
Best-Run Customers
99%Order and inventory
accuracy
15%
Improvement in fill
rate
8%
Fewer days
in inventory

Order to delivery
reduced from next
day to 4–5 hours

Why SAP?
SAP empowers automotive companies to accelerate product innovation, improve
quality, reduce manufacturing costs, and sell and service vehicles more profitably.
This helps drive market share growth in a highly competitive global market.
Tightly integrated end-to-end business solutions
SAP offers automotive companies a comprehensive and fully integrated portfolio of end-to-end
solutions.
Leveraging breakthrough innovations
The SAP solution portfolio delivers a robust and innovative technology foundation for automotive
companies and includes applications, in-memory computing, mobile solutions, analytics, and cloud
solutions. The full portfolio optimizes business processes and drives efficiency at the lowest
possible cost.
40 years of delivering value to the automotive industry
The world’s most successful automotive manufacturers, suppliers, and sales and service
organizations rely on SAP software to provide the foundation that drives performance and a
competitive edge.
Executive
Summary
39 / 42 © 2013 SAP AG
Dana Holding
TMHU
Valeo
Why SAP?
Best-Run Customers

Why SAP?
The best-run automotive organizations rely on SAP:
79% of the Global Fortune 500 companies are SAP customers.
100% of the top-scoring companies in the Dow Jones Sustainability World Index rely on
SAP software.
85% of the top 100 most valued brands in the world are SAP customers.
77,000 vehicles per day are manufactured by automotive companies that are SAP customers.
3,000-plus automotive companies worldwide rely on SAP.
40 / 42 © 2013 SAP AG
Dana Holding
TMHU
Valeo
Why SAP?
Executive
Summary
Best-Run Customers

Find Out More About How Your Organization Can
Become Best-Run
Benchmark Your Performance
Position your organization for dominance in this new economy with the business performance
benchmarking program from SAP – available free to SAP customers and select prospects. The
SAP benchmarking program has helped more than 3,000 organizations assess their strengths,
uncover areas for improvement, and identify best practices and IT strategies that generate clear,
tangible value – not someday, but today.
Visit valuemanagement.sap.com >>
Go Live in Weeks
Here’s the fastest way to run your business better: our rapid-deployment solutions. In one package,
you get everything you need to be up and running quickly – including preconfigured software and
implementation services – in just weeks. With a defined scope and predictable costs, there are no
surprises.
Visit sap.com/solutions/rds >>
Join Your Community of Practices
Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work. It
lets members help one another solve problems, learn, and invent new ways to get things done –
faster. Find out how to connect with people, content, and resources.
Visit scn.sap.com >>
Executive
Summary
41 / 42 © 2013 SAP AG

Industry Executive Overview
Automotive
CMP 23653 (13/02)
Visit us online to find out more:
Web:
www.sap.com/industries/automotive
Community:
http://scn.sap.com/community/automotive
© 2013 SAP AG
Executive
Summary

© 2013 SAPAG. All rights reserved.
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