M2M Summit 2016 Düsseldorf

1. OT Meets IT
Vertical Integration as Key Value Driver for Industrie 4.0
Oliver Edinger
Vice President and Headof Internetof Things/Industrie 4.0 Germany
SAP Deutschland SE & Co.KG
© 2016 SAP SE or an SAP affiliate company. All rights reserved.

2. The IIoT (Industrie 4.0) is about Devices to Insight to Outcomes
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Source: Forrester Consulting on Behalf of SAP, May 2015

3. Bottom Line Contribution Requires Horizontal and Vertical Integration
1
ERP
MES
SCADA
Equipment
Layer
Manufacturing
Company
Example Scenarios:
2
2. Machine to Machine (M2M)
Autonomous equipments
1
1. Shop floor to Top floor
Intra company vertical integration
E-Commerce
Customer
3
3. Customer Integration
- Direct integration of e-shops
- Usage pattern improvement
3
Service Provider
IoT Apps and
Analytics
5. Analytics
- Predictive maintenance
- Predictive quality / Reduced scrap
- OEE
- Energy Mgmt
5
5
Quality Operator
5
Supplier
4. Manufacturing Collaboration
- Track and Trace
- Genealogy / Recipe
- Direct replenishment
- Asset Intelligence Network
Mfg Collaboration4
4
© 2016 SAP SE or an SAP affiliate company. All rights reserved.

4. Top Line Contribution Requires New Digital Products and Services
© 2016 SAP SE or an SAP affiliate company. All rights reserved.

5. Enabling the IIoT for Business with an SAP Platform
Slide contains current and planned features© 2016 SAP SE or an SAP affiliate company. All rights reserved.
PLC
Historian
MES
Database
SCADA
Home Grown
IPC
OPC
On premise
IoT platform
Local Backends
Local Storage
and Non-SAP;
External Services
& Sources
…
(Web-)
Socket
MQTT
JSON
http
WSDL
JDBC
REST
Cloud-based
IoT platform
Moving
Assets
Smart
Home
Cloud and on Premise
EdgeComputing
Operational Technologies (OT) Layer IoT Layer IT Layer
Data Lake I Analytics I Mobile Apps I Custom
Development I Process Integration
Data Lake I Analytics I Mobile Apps I Custom
Development I Process Integration

6. No Scale-out of the IIoT w/o Edge Computing Capabilities
© 2016 SAP SE or an SAP affiliate company. All rights reserved.

7. IIoT Platforms Require Multi Tiered Storage Despite Edge Computing
Slide contains planned features.
Operational Technologies Layer (OT) IoT Layer IT Layer
Local Backends
Local Storage
and Non-SAP
External Services
& Sources
Cloud and on Premise
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
PLC
Historian
MES
Database
SCADA
Home Grown
IPC
OPC
…
(Web-)
Socket
MQTT
JSON
http
WSDL
JDBC
REST
Moving
Assets
Smart
Home
On premise
IoT platform
Cloud-based
IoT platform
EdgeComputing

8. Example: SIEMENS – Industrial IoT Platform
Company
Solution Benefits
Siemens AG (industry sector),
the leading global producer of
Industry Automation and Drive
Technologies
Situation: Siemens wants to offer an open cloud-based
platform (MindSphere) as a basis for an industrial
ecosystem. This will enable OEMs, app developers and
customers to integrate devices and to offer data based
services.
• Siemens Industrial Service Backbone (ISB)
• HANA Cloud Platform for the Internet of Things
• SAP analytical tools and apps
• IoT apps from Siemens and partners
• Business model: OEM PaaS
• Combine the best of both worlds
• A unique, end-to-end and global IoT offering for OEMs,
app developers and industrial customers
• Set a new industrial standard to access and make
sense of machine data
Technology and Business Innovation
© 2016 SAP SE or an SAP affiliate company. All rights reserved.

9. Example: ifm electronic – Ready-made Sensor Integration
Company
Solution
Technology Innovation
Benefits
ifm electronic, an industrial automation
technology manufacturer and producer of
sensors
Situation: intention to grow the business through built-
in SAP integration
• SAP Plant Connectivity (PCo), embedded in the ifm
product Connectivity Port
• Providing integration to SAP solutions like
• SAP MII/ME
• SAP Business Suite
• SAP HANA
• Business model: OEM
• Add value to the technology offering
• Expand the business through innovation
Sensors
Connectivity
IFM-Products
LR-Agent LR-Agent LR-Agent LR-Agent
Line Recorder
Efficiency
Observer
SMART
Observer
Setup
Station
Machine
SAP-Products
Connectivity Port w/ SAP Plant Connectivity (SAP PCo)
Plant
Enterprise
SAP MII
SAP
ME
SAP
EWM
SAP
NetWeaver
SAP ERP
SAP
HANA
© 2016 SAP SE or an SAP affiliate company. All rights reserved.

10. Example: Koehler Paper Group – Predictive Quality
Company
Benefits
Koehler Paper Group is a producer of
high-quality special papers
Situation: Target to ensure a stable high quality in paper
production
• Reduce waste and rework
• Faster “Time-to-Quality” for small lot sizes and first
time materials
• Superior product quality
• Detailed automated quality documentation
Solution
Process Innovation
SAP ERP
SAP Manufacturing
Execution
SAP HANA
PLC1 PLC2
Quality Tests
Defects
Realtime Quality Prediction
Data Model
SAP Infinite
Insight
Algo-
rithms
User Interface
SAP Event Stream
Processing (via SAP PCo)
Data Selection
Visualization
Statistical Analysis
Expert Review Step-by-
step root
cause
analysis
“Predictive Quality
means we calculate in
real-time what the
quality of the product
that is currently in
production will be”
© 2016 SAP SE or an SAP affiliate company. All rights reserved.

11. The IIoT Requires Innovation Networks
SAP’s Tools
and Methodologies
to Drive Change
Think Bold
- Design Thinking
- Business and Architecture
Advisory
- Global Innovation Center
Network
Start Small
- Hackathons
- Rapid Prototyping
Environments
- Starter Kits
Scale Fast
- Application Mgmt Services
- Global Cloud Infrastructure
SAP’s Long Term Partnership Approach
SAP’s Global Network of
Domain Expertise Partners
(Excerpt, in no specific order)
© 2016 SAP SE or an SAP affiliate company. All rights reserved.

12. Oliver Edinger
Vice President
Head of IoT/I4.0 Germany
SAP Deutschland SE & Co. KG
Hasso-Plattner-Ring 7
69190 Walldorf
M +49 160 90 432 886
T +49 6 22 77 49131
E oliver.edinger@sap.com
www.sap.com
Additional Information and Contact
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
http://www.sap.com/iot
@SAP_IoT
SAP Internet of Things
SAP Internet of Things

13. © 2015 SAP SE or an SAP affiliate company. All rights reserved. 13Confidential
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