1. The Digital Enterprise 2020; 20/20
Michael Kane
Vice President - Global Center of Excellence
Digital Enterprise Platform Group
SAP Americas
2. In six years Airbnb grew
to one of world’s largest
hotel companies.
Without owning any
hotels.
Cost of sequencing a
DNA genome is
outpacing Moore’s
Law. It could be as low
as 1 penny by 2020.
10M new
autonomous
vehicles per year
could be driving on
U.S. roads by 2030.
Uber, Lyft, and Sidecar
slashed 65% of San
Francisco taxi rides in
only15 months.
47% of U.S.
employees are at risk
of being replaced by AI
within10years.
DIGITIZATION IS THE CATALYST
Once digitized a thing can be copied
infinitely and perfectly and made instantly
available to everyone. This spurs innovation
and, with it, exponential growth.
Next begins a period of deception because this growth appears linear
at first; demonetization, as expensive goods can now be offered
almost free; dematerialization, when existing products disappear
into other, digital ones; and democratization, as costs drop so low
enough to be affordable by almost everyone.
Credit: “The Six Ds of Exponentials” (Steven Kotler, February 3, 2015)
DISRUPTION EXAMPLES
Self-driving vehicles will dramatically
change driver/passenger experiences,
increase productivity and safety, and
reduce the need to own vehicles for
personal use. The automobile, insurance,
legal, and transportation industries will all
feel theimpact.
Bitcoin threatens to undermine the
traditional roles played by banks and
payment systems by providing a viable
alternative to traditionalcurrency.
3D printing has the potential to render
product complexity essentially free by
bypassing the physical limits of how we
make and ship things. This will funda-
mentally change the manufacturing
and distributionindustries.
Digital bio-fabrication and DNA
sequencing will transform healthcare by
greatly extending lifespans and making
ultra-personalized medicineavailable to
billions.
Organizational structure, the nature
of work, and the limits of human
performance will be rethought, as
leadership, management, and education
are transformed to fit our digital age.
The end-result is disruption, when the
status quo is suddenly overwhelmed and a
whole new market is created.
IDENTIFY
your top competitive
advantages and how
exponentialtechnologies
could disrupt them.
DESCRIBE
your top challenges
and how exponential
technologies could
help solve them.
EVALUATE
which products and
services could be digitized
and what opportunities
this creates for you (and
your competitors).
INVESTIGATE
which technologies
are the most
promising, and begin
today to assess their
potential.
TO DIRECT YOUR DIGITAL FUTURE
Digital
Futures
No. 01
DIRECTYOUR DIGITALFUTURE
Gordon Moore’s venerable law turns 50, a milestone which carries a
powerful inflection point. We’re now at the knee of digital technology’s
exponential growth curve.
Thirty normal steps take you about 30 meters. Thirty exponential
steps (each step twice the distance as the previous one) covers
1,073,742 kilometers or more than 26 times around the earth.
3. WHERE WILLTHE SELF-DRIVING CAR TAKE US?
Automobiles haven’t changed much since the late 1800s.
They’re faster and more comfortable, but they’re still four
wheels and an engine with a person behind the steering
wheel. That’s all about to change.
Lidar, radar, cameras, sensors, mapping and navigational software, and all the
other technologies necessary to create an autonomous car already exist. Auto
dealers will begin offering self-driving cars within the next five years. And because
they will be safer, more convenient, and more fuel efficient than today’s cars,
they’re likely to become the norm, if not mandatory, in many places.
GEAR SHIFTS
We depend so much on cars and trucks that we
rarely think about them. They’re woven so deeply
into our lives and our culture that we simply take
them for granted. Self-driving vehicles will shake up
most of our assumptions.
Safer, more convenient, and more
fuel efficient, they’ll save a
projected US$1.3 trillion a year in
the U.S. alone – an amount equal
to 8 % of the U.S. GDP. This is likely
to make them common, if not
mandatory, in much of the world.
WARNING: SHARP CURVES
AHEAD
Cars that drive themselves will be a
profound shift that touches almost
every industry, geography, and aspect
of life:
Cost of adding self-driving
technology to a vehicle:
US$8K−$10K and dropping.
The 1.2 billion cars on the
roads are used just 4% of
the time. That’s 8.2 trillion
hours of nonuse per
year.
2020: fully
autonomous cars
arrive in dealerships.
Software will make up
as much as 40% of a
car’s value.
5.AGING
Seniors who would
otherwise be stuck at
home will be able to
summon self-driving
transportation to the doctor,
to shops and restaurants,
and to visit friends
and family.
1.OUR HOMETOWNS
Self-driving cars could
increase suburban sprawl
by making long commutes
more pleasant, but they
could also make urban living
more appealing by reducing
traffic, parking problems,
and inefficient mass transit.
6.SAFETY
Even when cars can choose
their own routes, they’ll still
need manual overrides and
programming exceptions for
things that interfere with
navigation, like bad weather,
or emergencies that require
a fast trip to the nearest ER.
2. CAR CULTURE
Car ownership could increase
as vehicles find the best
routes and parking spaces on
their own. However, a car-
sharing model might prevail
when cars can guide
themselves from one user to
the next.
7.LIABILITY
When the driver isn’t
controlling the ride,
manufacturers and software
companies could be
responsible for payments
related to an accident.
Their deeper pockets could
drive up awards for damages
and change both the rates
and structure of insurance
coverage.
3. CAR DESIGN
Cars will look different.
Steering wheels, large
windows, and even headlights
could be things of the past.
Cars will become highly
aerodynamic, with interiors
designed solely for the
entertainment and comfort
of theoccupants.
8. THE AUTO INDUSTRY
Self-driving cars will disrupt
the entire automotive
industry, from manufacturing
to ownership. Software that
manages the car will be close
to 40% of the vehicle’s total
value. Cars will generate vast
amounts of data that will
have to be processed,
analyzed, and protected.
4.TRAVELCONDITIONS
Once everyone is free to
work and play in their cars,
automakers, OEMs, and
content providers will
compete to deliver apps,
content, and user interfaces
to make the ride more
entertaining and productive.
Digital
Futures
No. 02
4. DRONES: TOMORROW’S “I” IN THE SKY
The first drones were remote-controlled model planes used in World War I
to surveil battlefields. Today, a drone is any unmanned aerial vehicle that
combines a power source, sensors or cameras, intelligent software, and a
communication link to its operator. But they are much more.
Drones are ideal for taking exponential technologies anywhere we want to send
them. What’s more, they’re getting exponentially simpler, safer, smaller, and more
powerful with each turn of the Moore’s Law crank. We’re hurtling toward a future in
which drones are widely available, increasingly autonomous, and capable of tasks
we haven’t begun to imagine.
On the other hand, drones may have enormous
ramifications on personal security and privacy, creating a
world in which everything is recorded, monitored, and
indexed for searching and analysis.
PROJECTING A FLIGHT PATH
Drones promise a world where we can capture any
imaginable information from any conceivable location, see
and understand places previously beyond our reach, and
affect environments in ways we’re barely beginning to
understand.
TRAJECTING UPWARDS,
QUICKLY
The same rules of exponential
growth accelerating other
technologies suggest drones will
be a thousand times more
powerful in the next decade.
Imagine when drones are:
1.Tiny
Some experts predict drones the size
of a housefly − or even smaller. Think
injectable medical nanodrones.
2.Infinitely versatile
Drones could pollinate flowers, perform
microsurgery, deliver cargo, provide
wireless Internet access, even build using
3D printers.
3.Completely autonomous
They will make their own decisions,
within assigned parameters, about what
to seek out, sense, and transmit.
4.Hyperconnected
They’ll work together in swarms, fly in
formation, and share data that helps them
avoid obstacles and choose the most
efficient routes.
5.Affordable by anyone
Better materials, batteries, and propulsion
will lower costs to the point where drones
can deliver high performance to
organizations or individuals for just a few
dollars each.
DRONES IN ACTION
Today’s drones combine more energy efficiency,
smarter software, and an expanding array of
sensors to augment human capabilities in a
range of commercial industries.
Agriculture: assessing crop
health, monitoring irrigation
systems, and tracking
livestock
Emergency response:
spotting forest fires,
conducting search and
rescue missions, and
delivering food and medical
supplies to war zones and
remotevillages
Utilities: inspecting wires,
towers, power plants, and
pipelines
Scientific research: tracking
animal migrations, reporting
on weather patterns, and
finding previously unknown
artifacts
Real estate: inspecting
construction and
improving security
News and entertainment:
taking photos and videos
from previously unreachable
vantagepoints
The global market for
commercial drones will rise
from $15.22M in 2014 to
$1.27B in 2020: triplingevery
18months,fastereven
thanMoore’s Law.
800 million people
worldwide have limited
access to emergency
services due to weak
transportation
infrastructure.
Cargo drones could
turbocharge economic
development inAfrica,
where only 16% of roadsare
paved.
Solar-powered drones will
provide Internet,Wi-Fi,and
telecom services to people in
remote places on earth.
Digital
Futures
No. 03
5. MAKERS SHAKE UP MANUFACTURING
Figuring out what customers want can be a fruitless exercise. Traditional
methods often leave companies guessing at real desires, and mass
customization is complex and expensive for many products. But what would
happen if customers could design and produce their own products?
The maker movement is growing up quickly. Individuals and startups increasingly
bypass traditional industry to produce bespoke goods on their own. As 3D
printing technology accelerates, hackerspaces are democratizing high-end
production tools. And with new crowdfunding and online retail options, control
over product development and production will return to the individual.
Cannibalize existing
business models,and
reorganize around
individual buyer and
maker needs.
Figure out how to
manage IP protection,
product quality,
corporate responsibility,
and innovation in a
highly distributed
environment.
Companies must help
customers customize,
or else customers will do
it on theirown.
A MANUFACTURING RENAISSANCE
Technological and sociological shifts will turn the
industrial revolution on its head. Today most products
are designed for manufacturers −to make production
easier. Inthe near future, products will be designed for
and by individuals.
This transformation has already begun. Coca-Cola introduced the
Freestyle fountain, and now soda buyers can create their own
concoction from more than 100 flavors. NIKEiD lets people put their
personal stamp on sneakers, and Hershey partnered with 3D Systems
to create the CoCoJet 3D printer.
The 3D printing
market will
quadruple to
US$12billion.
In 2006 the San
Francisco MakerFaire
attracted 65,000.
Last year 130,000
attended, and 85,000
in New York.
Peer-to-peer e-commerce
site Etsy’s revenue nearly
quadrupled in only 4 years
− from US$525 million in
2011 to US$1.9 billion in
2014.
Crowdfunding
campaigns generated
US$11.08 billion in
2014. The market
will grow to US$93
billion by 2025.
A MAKER MAINSTREAM
As customization becomes a matter of changing code rather than
retooling an assembly floor, it will become the norm.
INDIVIDUAL-CENTERED INNOVATION.
Today, innovation is tucked away in R&D departments,
funding is provided by corporate finance, and production
takes place a world away. Twenty years from now, it will
take place in your neighborhood.
A LOT SIZE OF ONE.
As 3D printing accelerates and comes down in price,
more goods that once required economies of scale from a
centralized factory will be produced at or near their point
of use.
CREATIVITY, CRAFTSMANSHIP, COMMUNITY.
Creative subcultures will flourish as individuals
collaborate on ideas, funding, and production. Some
may flock to cities and towns; others will work together
virtually.
MAKER MOVEMENT
MANDATES
$
Digital
Futures
No. 04
IP: THE CORPORATE ASSET.
It will not be that you produce something that delivers
value but that you know how to produce it − and in myriad
ways. Instead of designing, manufacturing, and delivering
products, companies will design and deliver IP..
6. BITCOIN’S BLOCKCHAIN:
A NEW MODEL FOR TRUST
If you think a digital currency like Bitcoin isn’t relevant to
your business, think again. Bitcoin probably won’t replace the
dollar, pound, euro, or yen, but its underlying technology –
the blockchain – could challenge our assumptions about what
makes commerce secure and trustworthy.
The blockchain model of trust, through massively distributed digital consensus, could
have disruptive potential equal to the Internet in the 1990s. This computer science
breakthrough could reshape commerce across the entire digital economy.
The Bitcoin blockchain — the
digital ledger of transactions
— is growing exponentially
and doubledto 40GB from
August2014 toAugust2015.
As of August 2015, the
Bitcoin blockchain alone
was already solving nearly
400 billion complex
mathematical equations
per second.
Honduras began
creating land titles
based on blockchain
technologyin May
2015.
Visa, the world’s largest pay-
ment network, is launching
a blockchain technology
development team to bring
secure digital finance to
unbankedconsumers.
The blockchain is a
distributed digital ledger
that uses a Breakthrough
in computer science to
authenticate the
transactions within it.
The blockchain can
replace trusted third
parties, like banks, in
guaranteeing transactions
and coordinates
agreement among all
parties.
It strongly resists
interference. Entries are
protected with cryptography
that becomes increasingly
secure as the number of
transactions and
participants grows.
TRUST BY DISTRIBUTED DIGITAL CONSENSUS
BLOCKCHAINS WILL KEEP US TOGETHER
Every stage of a transaction is recorded and
authenticated by the blockchain. As a result, its utility goes
beyond currency. In theory, the blockchain could be used
for any transaction that must be secure and verifiable.
For example:
Personal documentation, including
birth certificates, passports, wills, voter
registrations, criminal records, and
medical records
Business documentation, such as building
permits, vehicle registrations, health and
safety inspections, business licenses,
leases,anddeeds
Establishing ownershipandprovenance
of all kinds of intellectual property, from
artwork to software code
Managing ownership of and access to
homes, vehicles, safe deposit boxes, and
other physical objects
Legal compliance that verifies the chain
of custody of sensitive data, manages
software and hardware licenses, and
protects patents, copyrights, and
trademarks
Financial transactions, from stock and
bond trading to the release of funds only
when predetermined conditionsare met
Digital
Futures
No. 05
7. BLENDING THE BEST OF PEOPLE AND MACHINES
Humans have always been fascinated with robotics, but legends
like Isaac Asimov’s code of robot ethics, James Cameron’s cyborg
assassin, and Marvel Comics’ Iron Man have been the stuff of
science fiction. That is about to change.
Automation and artificial intelligence will affect every aspect of human life.
but the future needn’t be a dystopian one. As robots take over increasingly
complex tasks, new forms of man-machine interaction will emerge and
industry and society will evolve to accommodate a symbiotic relationship.
WE, ROBOT
Converging trends will spur new forms of
robotics – flexible, sensory, tactile, intelligent,
and interactive – with capabilities far beyond
what we envision today.
Robots complement the workforce by crunching numbers, lifting
heavy objects, working in dangerous places, moving with precision,
and performing repetitive tasks. This leads many people to ask if
robots might replace us for all endeavors. But human advantages
include creativity, curiosity, empathy, self-motivation, and the
ability to provide multidimensional feedback. Using advanced
robotics technology, we can blend the best of people and
machines.
The robotics market will
grow 9.5% per year to
US$66.9B by 2025.
Military and industrial uses
will be 60% of the total.
Image and speech
recognition technologies
are advancing quickly
and could soon equal
human abilities.
Tactiletechnologyis
improvingrapidlydue
to research and
development inrobot
-assisted medicine.
The virtual reality market
will grow to US$30B in the
next five years,while
augmented reality will be
a US$120B business by
2020.
WE’VE ALREADY BEGUN
• New York University and the
Florida Institute for Human and
Machine Cognition are
developing exoskeletons for the
disabled.
• The U.S. military is developing
an “Iron Man” suit that could
include super-human strength
and respond directly to brain
functions.
• A team of researchers at
Harvard University have created
a “smart suit” that makes its
wearer faster, stronger, and
more agile.
WORKING WITH THE MACHINES
Advances in speech and image
recognition, analytics, and virtual
reality will spur robot
development along twopaths:
• A new class of human-machine units
with defined autonomy, heightened
empathy, and significant artificial
intelligence
• Artificial human extensions like
stronger arms and legs, night vision,
and other sensory enhancements
The result? Challenges like
colonizing our oceans or space
travel will be realized in ways that
we could not accomplish alone.
THE UPSIDE OF CO-EVOLUTION
Collaboration with robots will spur innovation,
growth, and new ways of working. Rather than
fear robot takeovers, it’s better to:
• Digitize processes ripe for automation.
Identify those that benefit from human
advantages but might be improved by robot-
human collaboration.
• Experiment with robot technologies as they
emerge. Consider pilots in production and
supply chains.
• Invite employees to propose new ideas. Be
open to entirely new robot forms and
functions.
• Develop future scenarios based on your
unique business model and industry needs.
Digital
Futures
No. 06
8. CYBERSECURITY: PROTECTING
A HACKABLE WORLD
The Internet was created to share data not protect it. But as the
Internet becomes more central to daily life and grows to include
billions of networkable items, guarding it has become a gargantuan
challenge. It’s hard to lock down a system that was deliberately
designed for openness, resilience, and scale. Some say only a
massive global initiative will do.
1999: “White hat”hackers
predict the dangers of
ubiquitous networking.
January 2014: Security pros
uncover a spambot network of
more than 100,000 smart
devices, including a refrigerator.
July 2015:
Hackers prove
they can remotely
highjack a car.
September 2015:
Researchers find potential
vulnerabilities in 68,000
medical devices.
MISSED OPPORTUNITIES
Security tools and procedures are
complex and costly. Some businesses
fail to implement them because they
don’t understand their risk exposure.
Others understandably choose to
prioritize things with a direct,
tangible effect on the bottom line, like
customer service.
Traditionally, liability for security breaches has landed
not on companies that have failed to secure their
systems but on the software and hardware companies
that make or manage those systems. This is
changing, however. Enterprises can no longer
consider cybersecurity someone else’s problem.
Practice basic digital hygiene by
using robust passwords, two-factor
authentication, and hard drive
encryption whenever possible – and
by taking social media privacy
settings seriously.
Plan and invest to secure
the data interactions,
transactions, and
identities of customers,
employees, and partners.
Some experts even
recommend using honest
hackers to expose
vulnerabilities and help
develop strongerdefenses.
But these may not be enough. With today’s cyber criminals circumventing security measures as fast as they’re developed, we may need to consider a
global response – one with the intensity of the effort that took humanity to the moon in 1969. The future of the Digital Economy could depend on it.
RISING RISKS, INCREASED ATTENTION
We finally understand that when everything is networked, anything can be hacked. As
organizations and individuals become increasingly digital, we’re exponentially more
vulnerable to cybersecurity breaches. However, openness is so baked into the fundamental
structure of the Internet that re-engineering it for greater security is an enormous challenge.
The Internet is now too embedded in modern society to avoid. Our only choice is to ensure
that this global network can be trusted with our most critical services and transactions. At a
minimum we must take the following actions:
Digital
Futures
No. 07
9. VIRTUALREALITYGETS REAL
Virtual reality (VR), the use of digital technology to create immersive
simulations, was once the stuff of science fiction. So was augmented
reality (AR), which lets users interact with digital content that’s overlaid
on the real world. But thanks to Moore’s Law, VR and AR are about to go
mainstream.
With digitally enhanced realities firmly in the bend of the exponential growth
curve, current uses for VR and AR suggest amazing possibilities for the future.
They may even transform our very definition of reality.
TV weather reports
adopted the firstapplication
of AR on TV in 1975. The
term virtual reality was
first coined in 1989.
Oculus Rift raised
US$2.5 million on Kickstarter
in August 2012. Facebook
boughtthe company for $2
billion18 months later.
Overall, AR and VR
revenues are
predicted toreach
$150 billionby2020.
By 2020, 103 million
automobileswill
contain AR
technology.
VR’s potential for extending
human perceptions beyond our
current abilities could create a
truly mind-bendingfuture:
We might use AR or VR for hyper-
spectral imaging beyond the
visible electromagnetic spectrum
to let us “see” valuable mineral
deposits, hazardous emissions,
or even malignant tumors.
We might wear clothing that
converts data into tactile
sensations so we can feel an
audience responding on social
media as we deliver a speech
or sense aircraft flight
dynamics as immersively as a
birddoes.
CEOs might someday wear a
glasses-and-vest combination
that lets them see and feel, in
real time, how different parts of
the business are running.
REDEFINING REALITY
Retailers will let you try on a
dozen outfits in a few minutes
using an avatar customized to
your measurements.
Car dealers will let you sit
in VR simulations of new
models.
AR devices will overlay
diagnostic and treatment
information on patients’
bodies in the medical office
or operatingroom.
VR will let medical students
practice complexprocedures
safely using simulated
patients.
Anxiety sufferers will learn to
control panic attacks with
VR/AR games they navigate
by controlling their breathing.
COMING SOON
TOMS Shoes shows customers
the impact of their charitable
donations with a four-minute
VR video that visits the
residents of a Peruvian village.
The Los Angeles
Philharmonic immerses you
in the middle of the music
with a VR trip into the
orchestra pit and onto the
conductor’s podium.
Lowe’s lets customers re-create
their bathrooms in an AR space,
position new fixtures, and walk
through the simulated
renovation.
Researchers have developed VR
experiences that work as well
as the current standard for
assessing cognitive function after
a brain injury.
Clinics are testingVR technology
as a safe, private way to distract
patients from chronic pain and
help phobia sufferers overcome
their fears.
ALREADY IN ACTION
Digital
Futures
No. 08
WE’LL MOVE BEYOND CREATING DIGITAL INTERPRETATIONS
OF REALITY AND LIVE IN A WORLD WHERE REALITY ITSELF IS
10. DIGITAL MEDICINE: HEALING BETTER
The human body is difficult to understand and predict. X does
not necessarily lead to Y. Disease has multiple causal components.
That complexity is one reason healthcare has remained largely
immune to the transformative potential of technology.
However, several converging trends could change this. Access to an
abundance of genetic, phenotypic, and clinical data; real-time and in-
memory computing for advanced analytics; and a digitized, connected
patient population could make possible a better understanding of the
intricacies of human health.
Remote patient monitoring
for conditions like heart
disease,asthma, and
diabetes could save more
than US$200billion.
Telehealth options
(estimated to be a $25
billionmarket
in 2015) for routine and
psychological care could
save $100 billion.
The global medical
technology market is
estimatedto reach
$513.5billionby2020, from
$363.8 billionin 2013.
In 2015, the U.S. Food
and Drug
Administration
approved thefirst
3D-printeddrug.
TREATING THE INDIVIDUAL
Pharmacogenomics and predictive
biomarkers will match patients with
the best drugs or treatments.
Advanced analytic engines and
algorithms will enable doctors to
tailor treatment plans in real time.
3D printers will produce living tissue,
organs, prosthetics, and implants
customized for individuals.
Robots and drones will enable more
exacting surgical interventions.
Low-cost gene-editing solutions will
go from laboratory to doctor’s office.
VITAL SIGNS OF CHANGE
It’s possible to gather more health-related data than ever. But the digital
medical revolution will go far beyond wireless tracking devices that monitor
how we perform against fitness goals. Researchers and enterprises are
developing devices to collect ever-more detailed health information from
individuals and relay it to healthcare providers.
Data sharing between companies and customers lowers costs and improves quality in a
range of industries and could do the same for healthcare. Rapidly improving data
collection and analytics are enabling a pluralistic approach to care that will finally shift
focus from treating the sick to preventing illness.
Rapidly advancing technologies will
enable much better patient care.
THE UPSIDE OF COMPLEXITY
Big data alone will not cure what ails healthcare. But today’s
reactive, one-size-fits-all system will move to proactive,
individualized delivery of health management and disease
prevention – if the industry chooses to manage complexity
rather than work around it.
WE CAN GET THERE FROM HERE
THE INDUSTRY MUST EMBRACE NEW PROCESSES
CENTERED ON OUTCOMES AND CONSUMER CONTROLS.
THERE SHOULD BE DEBATES OVER THE ETHICS OF
PREDICTIVE MEDICINE AND DNA-BASED CARE.
PRIVACY AND SECURITY ISSUES WILL BE PARAMOUNT;
HACKING IS EVEN MORE OMINOUS IN THE HEALTHCARE
SETTING, FROM THE BREACH OF PERSONAL MEDICAL DATA
TO THE THREAT OF MALWARE IN MEDICAL DEVICES.
However, other industries have addressed similar security,
privacy, and change management issues required for digital
transformation. Healthcare can follow suit. The resulting
transformation would not only save resources but also lives.
Digital
Futures
No. 09
11. ENVELOPED BY AMBIENT INTELLIGENCE
The logical evolution of the Internet of Things is a world where
everything around us is instrumented, interconnected, and intelligent.
We will move through a world in which our surroundings are smart
enough to react to our voices and gestures – or respond to us
automatically, proactively, almost incidentally.
And that shift is coming sooner than you might expect.
Digital
Futures
No. 10
1Integrate information flow across devices,
manufacturers data types and technology,
Credit: Deloitte Consulting, 2015
INTERSECTING TRENDS
Powerful emerging technologies will overlapand
intersect:
THE INTERNET OF NOT THINGS
As sensors and devices become smaller,
smarter, and more integrated, they will fade
into the background, melding into a digital
infrastructure that responds proactively to
the environment and the people init.
At a minimum, the infrastructure must
achieve these capabilities:
1trillion sensors
will be connected
to the Internet by
2022.
Appliances and home
automation will account for
more than halfof household
Internettrafficby 2024.
The first“smart city” with
Internet-connected, automated
roads,services, and utilities will
emerge by 2026.
Over 8 billion ambient
intelligencesmartphone
apps will be downloaded
in 2020.
Sensors and actuators,
including implantables
and wearables, which will
capture and act on data
from vastly more objects
and places
Interfaces will be
powered by vision and /
or gesture, which will
create a highly interactive
world
Ubiquitous computing
and hyperconnectivity,
which will exponentially
increase interaction and
intelligence
Virtual and augmented
reality, which will extend
and enhance our senses
The differences between drones, robots, and
autonomous vehicles are already blurring.
Nanotechnology and
nanomaterials, which will
enable highly complex
devices at a microscopic
scale
Artificial intelligence,
which lets machines learn
from their environment
and each other
TRYING IT ON, NOW
We need to think about what it means to
be surrounded by largely invisible systems
that can sense, reason, act, and interact
with and forus.
AMBIENT INTELLIGENCE WILL CREATE VALUE IN WAYS WE HAVE YET
TO IMAGINE, WHILE RAISING PROFOUND QUESTIONS ABOUT WHAT
IT MEANS TO BE HUMAN.
Artificial intelligence is already good
enough at pattern matching to learn
and make complex decisions without
human intervention.
Home automation makes it possible for
lights, air conditioners, security systems,
entertainment systems, and appliances
to run independently.
2Analyze and manage objects and low level
events to detect signals and predict impact
3Orchestrate simple events and objects to
fulfill complex events and end-to-end processes
4End to end security and monitoring across
devices, connections, and information
exchange
12. City of Boston
Improving public services and providing its citizens instant insight
• Winner of the Driving Digital
Government Award.
• Boston About Results (BAR) is the
City’s performance metrics system
that turns real-time data into
measurable outcomes.
• With the right technology, Boston is
able to proactively troubleshoot
issues and reach strategic policy goals.
ClicktoRun:
Let’s take a look how we have built software for the last two decades in the client/server architecture. That’s the foundation, this is the real world: With suppliers, products, customer data, what ever you have.
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In the past Indices and total tables were created to avoid that systems were always calculating. This happened to ensure overall system performance but at a price: Complexity and Inflexibility. We filled those static aggregations with the respective content.
In other words: When we designed a process we thought “what information do we need and where do we get it from”. Then due to the performance aspects (technical limitations) we had to take the sums e.g. go from receipt level to totals of the day. This was predefined. The information was then filled into those “aggregates”.
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When then a change request came in – to add additional information piece – it was necessary to perform this change on multiple steps. And touch those aggregations, maybe even the data structures.
As said, we had to do it because the technical limitations forced us to do so, but the result was inflexibility, duplicates of information – redundancy. COMPLEXITY.
Let’s take a look how we have built software for the last two decades in the client/server architecture. That’s the foundation, this is the real world: With suppliers, products, customer data, what ever you have.
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In the past Indices and total tables were created to avoid that systems were always calculating. This happened to ensure overall system performance but at a price: Complexity and Inflexibility. We filled those static aggregations with the respective content.
In other words: When we designed a process we thought “what information do we need and where do we get it from”. Then due to the performance aspects (technical limitations) we had to take the sums e.g. go from receipt level to totals of the day. This was predefined. The information was then filled into those “aggregates”.
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When then a change request came in – to add additional information piece – it was necessary to perform this change on multiple steps. And touch those aggregations, maybe even the data structures.
As said, we had to do it because the technical limitations forced us to do so, but the result was inflexibility, duplicates of information – redundancy. COMPLEXITY.
To reimagine your business, you need to have the right platform & framework in place. The right technologies ensure agility and a rich environment for innovation. SAP offers the only end-to-end digital business solution with this integrated digital business framework. A framework - helping you to master the digital economy. It is entirely based on the SAP HANA Platform - delivered in the cloud.
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1.) The SAP HANA Platform – I’m sure you’ve heard of HANA. HANA is an in-memory computing platform that has completely transformed relational database industry. The SAP HANA platform combines database, application processing, and integration services on a single platform.
So what is HANA?
HANA is a next generation platform, which is capable of processing massive quantities of data in real-time with very little tuning or maintenance – it is powerful and simple.
HANA is more than a database though, as it does predictive, geo-spatial, and text – it is one converged platform solving data problems that before took many disparate systems.
HANA provides a platform for applications enabling faster and more agile development with fewer servers – it enables speed and simplicity
HANA works with you exiting infrastructure through best in class data virtualization services – it allows innovation without disruption
HANA can be deployed anywhere and provides the mission critical features that your IT and Security teams demand – it is cloud ready.
Said another way, HANA is a converged platform for data and applications just as your smart phone became a converged platform for all types of communication.
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2.) S/4HANA is the new default offering for Business Suite.
It is a new product based on 3 things:
It runs on a substantially simplified Data model
It is fully Fiori Web-based
And it has a guided configuration that makes it completely easy
And all this with full choice for cloud and on Premise consumption.
Let me shortly explain the new simple paradigm the Suite is built on: Think about how we have built software for the last two decades in the client/server architecture. That’s the foundation, this is the real world: With suppliers, products, customer data, whatever you have.
In the past Indices and total tables were created to avoid what systems were always calculating. This happened to ensure overall system performance, but at a price: Complexity and Inflexibility. We filled those static aggregations with the pre-calculated results.
In other words: When we designed a process we thought “what information do we need and where do we get it from”. Then due to the performance aspects (technical limitations) we had to take the sums e.g. go from receipt level to totals of the day. This was predefined. The information was then filled into those “aggregates”.
When then a change request came in – to add additional information – it was necessary to perform this change on multiple steps. And touch those aggregations, maybe even the data structures.
As said, we had to do it because the technical limitations at the time forced us to do so, but the result was inflexibility, duplicates of information – redundancy. COMPLEXITY.
That is why we now have a different approach, based on current technological capabilities. We maintain the core data model and enable easy integration in and migration from existing on-premise applications. As these applications are not a monolith anymore – these are single applications – therefore the move can happen step by step = more flexibly and integrated at the same time.We work on the lowest level of granularity, the line item information.
The aggregates and indices made structural changes to the data set-up very hard to implement, because we have the technical capability of aggregating the information on the fly - these restrictions are gone.
AND VERY IMPORTANT: As it is completely web-based Fiori enabled - for whatever question the business might/WILL come up with we can define the answer to it. Because the data is there, the platform and the user experience enables us to solve it.
New Data-model, User Experience, Configuration & Integration = Complete overhaul from top to bottom of our applications leveraging the power HANA has given us. It also gives customers absolute choice about deployment: Cloud and on-premise.
We have a direct impact top-line of the customer (e.g. Faster Business Processes, Smarter Business Processes, Analytics in Every Transaction, One source of truth…) and an impact to the bottom-line of the customer (e.g. reduced complexity & cost…)
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3.) SAP Analytics Suite - The big opportunity is to give all employees and customer’s immediate insight to what is going on. Too few organizations are able to capitalize on the opportunity to create value from their data. Too few people have access to data and analytics technology. According to industry research roughly 10% of people in an organization have access to analytics, that figure is predicted to rise to 75% by 2020.
What is the value of SAP Analytics?
Analytics for Everyone. Ditch analytic tools that don't work together with the world’s most comprehensive analytics to plan, discover, visualize, predict, and govern. Bring the entire organization; Finance, HR, Operations, Supply Chain, Marketing, and Sales together for a group hug to decide together in the moment. SAP provides analytics for everyone in the organization together with collaboration including the world’s only modern SaaS solution for all-analytics. Never meet a data source you don’t like. Access and blend any data big or small with analytics that provide the most data source connectivity on the market.
Own the Outcome. Automate analytics to breakthrough in the age of the algorithm. Discover and execute on disruptive innovations that create value in your organization with automated predictive analytics that don’t require a degree in data science. Act in the moment with live analytics at the point of decisions within your applications. Drop-kick static data and tap into infinite potential with Dynamic Data Tiering at capitalize on your most important data in real-time by profiling your data into cold, warm, and hot data stores.
Be the One to Know. Fuse your data with analytics that understand and recommend decisions. Gain advanced insights and recommendations based on your data without clicking a button with predictive insights embedded in your analytics. Be the life of the data party with easy to consume analytics and collaboration that connect insights to conversations across your business. Travel in light years with enterprise speed and scalability to grow your analytics strategy at the right pace for your business and trust your have a partner that can meet your analytics demands as your business grows.
What are the IT benefits of SAP analytics?Accelerate your digital transformation by knowing your data is safer and more secure in any environment and surpass challengers with enterprise speed and scalability. Maximize your SAP investment with unmatched domain expertise from the largest analytics ecosystem in the market. Run analytics and SAP applications on a single platform so you can greatly simplify deployment efforts and reduce total cost of ownership.
What solutions does the SAP portfolio of analytics solutions encompass?The SAP portfolio of analytics solutions encompasses solutions for BI, Advanced Analytics, EPM, and GRC. Key solutions include SAP BusinessObjects BI, SAP Lumira, SAP Predictive Analytics, SAP BPC, SAP IT Operations Analytics, SAP Cloud for Analytics, and SAP Digital Boardroom.
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4.) SAP HANA Vora is an in-memory query engine which leverage and extends the open source framework to provide enriched interactive analytics on Hadoop. SAP HANA Vora is the door opener for the open-source community and allow you to penetrate and upsell other SAP database and technology solutions to these customers.
Key points:
HANA VORA works with HANA – IT DOES NOT REPLACE HANA.
IT DOES NOT REQUIRE HANA. Optionally it can be deployed on Spark/Hadoop to support data science workloads without HANA.
It works with SAP applications or your own custom applications.
HANA Vora deploys with spark on in a Hadoop environment (other distributed environments in the future.)
It support open languages and HANA development paradigms—your choice!
It helps integrate Business data (like BW and S4HANA) and Contextual data from Hadoop and noSQL environments.
In most cases, HANA Vora extends the existing SAP HANA landscape to increase access and reduce complexity of working with data in Spark/Hadoop.
HANA Vora has three big benefits
Enabling Precision Decision Making - This means customers can make better decisions, with more data context and coherence than before. In this deployment, SAP HANA Vora makes this easier by giving business coherence between real time business application data (often stored in HANA) with contextual data (often gathered into Hadoop), to discover new insights from aggregated data.
Democratizing Data Access for data scientists and other investigators of big data means data scientists can work with all the data in the enterprise through a single, unifying interface to the data. Extensive programming support for Scala, python, C, C++, R, and Java allow data scientists to use their tool of choice and Ask the Unknown Questions.
Simplifying Big Data Ownership reduces the complexity of working with big data and makes it easier to manage systems with hot, warm, and cold/raw data that live across multiple data processing engines.
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5.) HCP – HANA Cloud Platform - is an open platform-as-a-services providing unique integration, extensibility and business application services. The SAP HANA Enterprise Cloud is infrastructure-as-a-service plus managed services for SAP software. Let’s take a closer look:
We have the Managed Cloud – HANA ENTERPRISE CLOUD – on the one side, which deploys SAP Components such as the Business Suite, Business Warehouse in a private cloud environment for a customer. He can subscribe the software and the infrastructure and we take care of the responsibilities, which come along with the systems (such as upgrades). Alternatively, the customer just rents the capabilities to deploy the applications in the HEC but brings his own licenses and operates the applications on top. We also have our SaaS Applications such as Finance, HR, Procurement and Customer Engagement & Commerce Solutions.
In the center we have our Platform as a Service Offering – the HANA CLOUD PLATFORM, an open stack integrated development platform for our SAP Software as well as for our Partners, which allows us to build and run new applications, extensions to software or integrate existing components with each other. Furthermore, we provide several runtimes and programming models such as ABAP but also HTML5, Cloud Foundry, JAVA and others. Those applications can be enriched by our application services, which help to build sustainable and mission critical software with the necessary security concepts, user experience and other features.
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5.) Summary
The SAP’s Digital Business Framework is based on the five key pillars of a digital plan and a digital architecture:
Customer experience across all channels
Supplier collaboration across all spend categories (product, services, and T&E)
Digital Core business processes (finance, supply chain, R&D, manufacturing, …)
Workforce engagement, including employees and contractors
Assets and the Internet of Things to drive real-time insights and new business models
All 5 pillars are contained here: Digital Core is S/4, you can bring process together via HCP, engage workforce with SuccessFactors, collaborate suppliers with Ariba and Fieldglass, and Big Data on SAP HANA platform. Now we have the total solution and any business in any industry can re-imagine everything because they are running on a completely new platform.
Intel’s vision and leadership of the ‘virtuous cycle of growth’ where solutions are offered that allow things and devices to connect to the cloud and datacenter is a perfect compliment to the solutions SAP is developing to build a digital enterprise.
SAP software and Intel® Xeon® processor E7 family help customers: deploy a digital environment quickly and non-disruptively, deliver strategic and tactical business value, simplify and consolidate infrastructure and operations.
Faster transaction speeds and accelerated operations mean real-time responsiveness, quick results, and increased productivity compared to prior generation.
SAP HANA is exclusively powered by Intel® Architectures
The Intel Xeon processor E7 family delivers up to 6x more transactions per minute in transactional processing tests with SAP HANA.
Intel supports a large set of solution providers for SAP HANA deployments On-Premise, In the Cloud and in Hybrid solutions (based on open-standards):
On-Premise: 12 OEMs certified: Bull SAS, Cisco, Dell, Fujitsu, HP, Hitachi, Huawei, Lenovo, NEC, SGI, Unisys & VCE
Cloud: SAP HEC, IBM, HP, Amazon