Showcase slides delivered by SAP at the Autumn COMIT Community Day hosted by SAP and held at their offices in Feltham on 13th September 2018

1. INTERNAL
Ceri Carlill, SAP
13 September 2018
SAP for the Construction Industry in the UK
COMIT Community Day

2. 2© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
• SAP global strategy for the construction
industry
• Our priorities for the UK market
Agenda

3. SAP Global Strategy for the Construction Industry

4. 4© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
What problem are we trying to solve?
Typical IT environment in construction companies…
Executives
Finance
HR
BD
Project
Management
Procurement /
Subcontracts
Engineering

5. 5© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Executives
Finance
HR
BD
Project
Management
Procurement /
Subcontracts
Engineering
Our vision…
A simple integrated platform

6. 6© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Owner
Projects
Intelligent
Enterprise
Controller
HR
Business
Development
CFO
COO
Project Engineer
Project Manager
Subcontractors
Designers
Reduce health and
safety risks
Manage internal and contingent workforce
Get real-time business insights
Eliminate project surprise, control risk,
and increase profitability
Key benefits of an integrated platform
Improve efficiency and manage project risks
Get a single view of the customer
Improve project
collaboration

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The value potential is high
Source: Navigating the digital future: The disruption of capital projects –
McKinsey & Company, October 2017

8. 8© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Next Practices for construction companies
SAP point of view
1. Enable seamless information flow from Design to Build to Operate
2. Improve and rationalize work preparation and execution on-site
3. Incorporate/extend pre-fabricated products in the construction process
4. Extend automation – on-site and off-site
5. Incorporate/extend standardised products within the design process, producing industrialised
on- and off-site structures

9. 9© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP is an established global player in Construction
The Americas Europe
Middle East
Asia-Pacific
• 20+ years of dedicated Construction practice
• 3000+ Construction customers worldwide
• 25,000+ days Industry-specific development in the last year
• US$3.2bn R&D spend annually
The members of the SAP Executive Advisory Council for
Engineering, Construction and Operations represent over $200
Billion in annual revenue and more than 250,000 employees.
• Complete Construction Lifecycle support on a single platform
• Deep industry-specific capabilities
• Embedded preconfigured best practices
• Clear industry road map

10. Engineering, construction, and operations companies are increasing margins and reducing surprises by industrializing their processes with:
2. Real-time forecasting, monitoring, and optimization of complex projects1. Adaptation of proven manufacturing and lean processes, real-time monitoring and feedback,
and industry best practices to achieve operational excellence
Digitally reimagine your
business models through
new business
capabilities along
a value map.
Preconstruction Asset Management FinanceProject Delivery Human Resources
Digitalization of
expertise and
knowledge
• Attract, retain, and train skilled labor
• Support workforce planning
• Increase visibility into resource demand, supply, and
performance with simple search capabilities based on
skill sets
• Gain full visibility and optimization of operations and
the maintenance workforce
• Extend total workforce management across the
internal and contingent workforces to extend access
to skilled labor staff
Digitalization of the
construction site
• Improve win rate and manage risk with a single view
of historical data for superior bidding
• Use collaborative, model-based engineering
• Track project progress, cost, and margin with greater
accuracy, in real time, and on any device
• Optimize the change process with visualization
• Deliver a digital twin of as-built assets to allow
employees to access visual maintenance guides on
their mobile devices
• Help ensure overall project and company profitability
and mitigate risk with real-time project financial
performance and forecasting
• Collect accurate time information from the field
• Track safety and certifications accurately
Digitalization of
intercompany
collaboration
• Increase win rates and mitigate risk with simplified
processes for bidding and estimation
• Provide a collaborative network of design information
that includes the owner, contractors, and suppliers
• Provide a single, trusted view of all project-related
information to the project team
• Create a digital twin to share structured and
unstructured data with owners, contractors, and
suppliers
• Transition information seamlessly from construction
systems to the owner’s operational landscape
• Tune scalable quote-to-cash processes to
digital acquisition and consumption requirements
• Standardize labor contracts
Digitalization of
commissioning
and operations
• Harmonize design authoring models into a complete
as-built framework
• Enable accurate, model-based quantity takeoffs
Create a digital twin of assets for owners, contractors,
and suppliers to understand and collaborate
• Commission facilities more quickly with accurate
construction and equipment information
• Digitally transition asset information from project to
operational systems to improve information accuracy,
lower costs, and expedite retention payments from
customers
Reimagine processes to acquire, train, and retain a skilled workforce
Reimagine processes to enhance the construction manufacturing site with prefabrication
Reimagine business models to increase collaboration and decrease risk
Reimagine business models to design, build, operate, and maintain assets
49091enUS(17/12)©2017SAPSEoranSAPaffiliatecompany.Allrightsreserved.
*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits of moving from a traditional enterprise resource planning solution to enhanced SAP S/4HANA and line-of-business or cloud capabilities.
49182 enUS (17/05) © 2017 SAP SE or an SAP affiliate company. All rights reserved.
Digital Innovation
SAP® Leonardo
Extensions
Digital Core
SAP S/4HANA
SAP Cloud Platform Analytics Services Mobile Services Security Services Collaboration ServicesUser Experience Services
Asset ManagementProject DeliveryPreconstruction Finance Human Resources
• Real estate management
• Mobile asset management
• Equipment and tools management
• Asset operations and maintenance
• Environment, health, and safety
• Asset strategy and performance
• Asset maintenance management
• Integrated business planning
• Governance, risk, and compliance for finance
• Digital payments add-on
• Financial services network
• Travel management
• Talent and learning management
• Time and attendance management
• Human capital analytics
• Core human resources and payroll
• Financial planning and analysis
• Accounting and financial close
• Treasury management
• Advanced financial operations
• Invoice management and accounts payable
• Core accounting
• Cost management and profitability analysis
• Basic financial operations
• Time recording
Ÿ Planning and forecasting: -35%
Ÿ Sourcing costs: -3%–9%
Ÿ Customer satisfaction: +10%–20%
• Total project costs: -2%–3%
• Project delivered on or below budget: +1.9x
• Rework costs: -10%
• Dispute or claims incidents: -10%
• Speed of commissioning: +25%–50%
• Unplanned maintenance of equipment: -18%
• Audit cost: -5%–10%
• Rate of compliance with regulatory reporting
requirements: 100%
• Costs of compliance and risk
management: -48%
Ÿ Rework time: -10%–21%
Ÿ Accident frequency: -53%
Ÿ Revenue per professional employee: +20%
Typical benefits from
SAP S/4HANA®*
• Digital boardroom
• Predictive analytics
• Multiresource management
• Predictive maintenance and service
• Asset intelligence network
• Image and video processing
• Audio and speech processing
• Resume matching
• Job standardization
• Job matching
Big DataBlockchainMachine Learning Analytics Data IntelligenceInternet of Things
• Opportunity and proposal management
• Collaborative sourcing and contract management
• Virtual design and construction (Visual enterprise)
• Vehicle insights
• Enterprise project connection
• Project financial planning
• Order and contract management
• Supplier management
• Project approval and accounting
• Project controlling and forecasting
• Project change and issue management
• Incident management
• Invoice and payables management
• Project analytics
• Project and job costing
• Transportation management
• Purchasing execution
• Business network
• Guided end-user buying
• Asset intelligence network
• Mobile and sensor status (SAP Cloud Platform
and SAP Leonardo)

11. 11© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
.
Where does SAP Invest its Construction R&D budget?
Project intelligence
Asset Management, predictive
maintenance and service
Asset intelligence
Collaborative design & engineering,
planning and construction
Contractor Owner
Business
Transactions
Intelligent
Insights
Intelligent
Network of Digital Twins
End-2-End Facility Lifecycle
Management - physical,
conditional, commercial

12. Our Priorities for the UK market

13. 13© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Fix these issues now, with SAP!
Obtain real-time visibility on project controls
Get the best out of your internal and contingent
workforce
Reduce safety risks

14. 14© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
• SAP has the required experience worldwide to be considered as a serious partner for the
digitalisation of the construction industry in the UK
• We have the digital platform to enable the future growth of the construction industry
We are ready to work with you to address your
burning issues!
In Conclusion…

15. Contact information:
Ceri Carlill
Senior Director, Services Industries Digital Transformation
ceri.carlill@sap.com
+44 7824 457094
Thank you.