Delivering Real-Time Business Value for Industrial Machinery and Components

July 2013
Delivering Real-Time Business Value for
Industrial Machinery and Components
SAP Business Suite Powered by SAP HANA

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public
The real-time opportunity
To remain competitive, industrial machinery and
components manufacturers must reduce sales cycle
times for products and services, minimize time to
profit for new projects, and decrease supply chain
costs.
 Innovate, optimize, and sell solutions tailored for your
customers
 Speed your supply chain and reduce costs
 Achieve market differentiation via superior customer service

Becoming an innovation-driven enterprise
Aligning business operations with customer needs
Innovate,
optimize, and
sell solutions
tailored
for your
customers
 Instant analysis of customer behavior and market trends
 Tailored solutions for your customer accessing real-time
detailed data
 Complete customer insight in real time
Speed your
supply
chain and
reduce costs
 Real-time response to shifts in demand and supply
 Real-time visibility across entire supply chain and
system landscape
 Real-time “what-if” analysis and simulation
Achieve market
differentiation
via superior
customer
service
 Increased uptime and best-in-class service-level
agreements
 Better service through real-time equipment, asset, and
maintenance predictive analytics
 Reduced service cost through maintenance budget
planning

SAP Business Suite powered by SAP HANA
The next-generation business platform
Real-time business
In-memory
Business
transactions
Digital
connections
Collaborative
business
CloudSocial
Big DataMobile
One platform bringing it all together
Advanced
analytics

Industrial machinery and components (IM&C) value map
Powering a solution provider network
R & D/Engineering
Integrated Product
Development
Continuous Product and
Service Innovation
Embedded Compliance in
Product Development
Aftermarket Service
End-to-End Service
Management
Advanced Contract
Management and
Service-Centric Billing
Service Parts
Management
Dealer Management
Manufacturing
Engineer-to-Order and
Project Manufacturing
Make-to-Order
Manufacturing
Outsourced Manufacturing
Supply Chain
Sales and Operations
Business Planning
Demand Driven
Supply Chain
Logistics and Order
Fulfillment
Sales
Collaborative Sales Force
Automation
Sales of Configurable
Products and Solutions
Multichannel
Management
Adaptive Pricing and
Usage Based Billing
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
Commercial Project
Management
3D Business Visualization
Asset Operations and
Maintenance
Technology
Solutions
Analytics Consumer ExperienceData Management Enterprise Mobility
The SAP HANA Platform
Application
Development
and Integration
Quality Management
and Compliance

Industrial machinery and components value map
Focus areas for SAP Business Suite on SAP HANA
R & D/Engineering
Integrated Product
Development
Continuous Product and
Service Innovation
Embedded Compliance in
Product Development
Aftermarket Service
End-to-End Service
Management
Service Parts
Management
Dealer Management
Manufacturing
Engineer-to-Order and
Project Manufacturing
Make-to-Order
Manufacturing
Outsourced Manufacturing
Supply Chain
Sales and Operations
Business Planning
Demand-Driven
Supply Chain
Logistics and Order
Fulfillment
Sales
Collaborative Sales Force
Automation
Sales of Configurable
Products and Solutions
Multichannel
Management
Adaptive Pricing and
Usage Based Billing
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
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
Commercial Project
Management
3D Business Visualization
Asset Operations and
Maintenance
Technology
Solutions
Analytics Consumer ExperienceData Management Enterprise Mobility
The SAP HANA Platform
Application
Development
and Integration
Quality Management
and Compliance
Highest value
for IM&C
4
3 2 1
6 5
7
Advanced Contract
Management and
Service-Centric Billing
Enterprise Risk and
Compliance
Management

Today
With SAP Business Suite on
SAP HANA
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Make-to-order manufacturing
Business value for material requirements planning (MRP)
 MRP batch jobs cannot run within the
available overnight batch job window
 It’s not possible to process and ship
orders in the same day because the
overnight MRP run is required to
create supply orders
 Sales orders for complex orders
cannot be confirmed to the customer
in an acceptable amount of time
 40%–60% reduction in MRP runtime,
helping ensure that batch jobs
complete in time
 Ability to execute MRP run more
frequently (such as during the day) to
allow same-day orders to be
produced and shipped
 Ability to execute MRP run more
frequently (such as during the day) to
allow complex orders to be confirmed
more quickly, providing a competitive
differentiator
Reduce
out-of-stocks by
5%
Decrease
Limit
inventory and
safety stocks by
4%
lost customer
orders due to slow
order processing

Today
SAP HANA
Demand-driven supply chain
Business value for supply chain monitoring
 Casual business users have difficulty
viewing and analyzing the demand
plan
 There is no ad hoc operational
reporting
 Data loads in traditional reporting
tools are time-consuming
 No ready-made reports exist for
analyzing forecast accuracy
 Analyzing supply chain management
(SCM) master and transaction data
in combination with enterprise
resource planning (ERP) data is
difficult
 Business users able to view a near
real-time version of the demand and
supply plan via various intuitive user
interface (UI) tools (including mobile
devices)
 Ready-made analytical reporting
possible with streamlined data load
 Predefined dashboards for different
use cases (analytical workflows)
including forecast accuracy
 Ability to store SCM and ERP data
on a single SAP HANA platform; can
be readily combined/analyzed using
via a common UI
Reduce
supply chain
costs by
3%
Optimize
Increase
inventory levels by
7%
customer service
level by
4%

Today
SAP HANA
Sales of configurable products and solutions (1/2)
Business value for sales
 Distinguishing profitable customers
from customer pool is difficult
 There is no ability to identify gaps in
sales pipeline leading to missed
targets
 Extracting actionable information from
enterprise-wide customer information
(Big Data) to maximize the chance of
a sale is time-consuming
 Minimal insight exists into buying
preferences of customers in social
data context
 Ready identification of profitable
customers with account intelligence
analytics
 Faster transaction search
functionality
 Complete transparency into sales
pipeline based on real-time information
with unlimited drill-down ability
 Optimized sales territories enabled by
simulating large volumes of territory
data for adequate coverage
 Real-time analysis of Big Data to
better understand buying patterns
 Real-time access and assembly of all
data including social/sales data
Increase
profitability by
2%
Decrease
Improve
cost of sales through
balanced territories by
4%
offer win rate

Today
SAP HANA
Sales of configurable products and solutions (2/2)
Business value for SAP Business Suite on SAP HANA
 Analyzing sale of configurable
products at right level of detail is
time-consuming or impossible
 There is no ability to analyze
nonselling options and option
combinations
 Analyzing booking and backlog
information for make-to-order
products is difficult
 Saving large, complex sales orders
takes a significant amount of time
 Easier to identify option combinations
that are frequently sold and adjust
supply chain delivery programs
 Analysis of historical demand for
options with subsecond response
time
 Real-time visibility to entire order to
cash value stream at any level of
detail/aggregation
 Easier identification and ability to
intelligent react to period-end
revenue shortfalls
 Increased user productivity and
satisfaction by significantly reducing
time required to save complex orders
Reduce
time required to
analyze sales of
configurable
products from days
to seconds
Minimize
Increase
revenue guidance
misses
user productivity
Note: Additional license materials or customer-specific project work may be required to realize this business scenario.

Today
SAP HANA
Integrated product development (1/2)
Business value for project management (portfolio and project management)
 Project members experience long
waiting times when starting the
project and task dashboards
 Updates on multiple tasks are
inefficient and time-consuming
because project team members
confirm tasks one by one to reduce
waiting times
 Searching for documents across
projects takes a very long time for a
large portfolio of projects
 The process of finding projects,
tasks, and phases by responsible
project member is slow
 Faster access to user tasks and
projects
 Accelerated access to project, task,
and checklist item dashboards
 Project team members able to
confirm times, status, and dates and
attach documents for several tasks
at once
 Increased user productivity
 Accelerated search for documents
 Faster ability to find projects or tasks
by responsible project member
Increase
user productivity
20%
Reduce
Improve
time for task
confirmation
35%
Search for
documents and
project elements
35%

Today
SAP HANA
Integrated product development (2/2)
 Analysis and progress monitoring of
product development and
engineering change (ECN) projects
is time-consuming
 Analyzing the cost impact of
engineering changes is difficult
 It is hard to determine when changes
should be effected.
 It is time-consuming and tedious for
engineers to search for and select
suitable parts/components during
design
 Improved query performance for
portfolio and project management
that dramatically reduces time and
effort required to analyze projects
 Intuitive access to large volumes of
purchasing and planning data,
allowing engineers to easily
determine when changes should be
effected
 Real-time text string search and
classification search allowing casual
users to easily find materials (and
metadata) with desired attributes,
thus reducing likelihood that a
duplicate part is created
Increase
efficiency in working
with large projects
Reduce
Reduce
cost impact of
engineering
changes
frequency of
duplicate part
creation

Today
SAP HANA
End-to-end service management
 It’s difficult to analyze large volumes
of equipment service and failure data
to identify patterns of product failure
 There is need to combine real-time
information from the field and
connected assets with statistical
analysis of historical data to allow
smarter decisions
 There is no ability to systematically
analyze unstructured text data (such
as from a sales technician field
report) and combine with ERP or
sensor data
 Ability to perform complex causal
analysis on equipment service and
failure data to enable proactive
maintenance
 Predictive analysis on sensor data
from connected assets
 Early information about potential
product failures
 New business models leveraging
machine data from sold devices
 Ability to use sentiment analysis of
unstructured text data to identity
failure patterns
 Combination of ERP service data
with sensor data to enable predictive
service
Improve
service-level
compliance
Create
Increase
new service
offerings
customer intimacy

Today
SAP HANA
Engineer-to-order and project manufacturing
Business value for project management (project systems)
 Cross-project or program monitoring
is challenging due to high data
volumes
 Deviations in costs, time, resources,
or quality are seen too late in the
process
 There is no ability to monitor and
analyze all aspects of large projects
simultaneously and drill down into
relevant details
 Improved employee productivity and
project profitability
 Complete visibility across projects
 Early insight in deviations and risks
enabling timely corrective measures
by alerting and highlighting
deviations in real time
 Modern, easy-to-consume UI
 Real-time insight and easier-to-
manipulate information
 Complete progress monitoring along
the project lifecycle
Accelerated
determination of
exceptions and
potential future
deviations
Improved
Reduced
decision support
to take appropriate
corrective
measures in time
project failure rate

Today
SAP HANA
Accounting and financial close
Business value for entity financial close
 The process is long-running with
multiple steps to complete
 Limited transparency precludes ability
to manage central financial close
 High numbers of involved systems and
people require many handovers and
reconciliations
 Missing financial excellence results in
a higher cost of equity at the capital
market.
 Lack of governance results in issues in
ensuring a sound end-to-end closing
process and effectiveness of internal
controls
 It is difficult to support parallel financial
reporting standards and simulate
scenarios
 Automatic reconciliation with
automated real-time matching
 Single repository for company and
corporate data
 Common view across financials and
logistics
 Comprehensive simulation of org
changes and alternate accounting
methods
 Deeper and faster insight down to
the lowest level of detail – delivering
quality at source, transparency,
process efficiencies
 Common view across financials and
logistics – faster reconciliation and
drill-through
Eliminate
period-end surprises
Reduce
Enhance
month-end closing
time by
44%
compliance and
accuracy

Customer cases
Japanese
technology firm
• SAP Business Suite and other applications
powered by SAP HANA
• Automated reporting
• Inventory optimization
• Predictive analytics
• Inventory visibility
European
technology firm
• SAP Business Suite on SAP HANA
• Real-time inventory
• Real-time material planning
• Marketing and sales
• Fast financial close
Leading U.S.
technology firm
• SAP HANA platform and SAP Business
Suite on SAP HANA
• Variable margin analysis
• Customer service excellence
• Opportunity order analysis
• Predictive analytics
• Supplier network traceability
• Predictive scoring
Benefit over 5
years
US$25 million
Annual benefit
€85 million
5-year net value
US$152 million

Next step
Business scenario recommendation and value discovery workshop
 SAP offers a proven methodology and approach to
discover customer-specific business improvement
areas and quantify value potential.
 We suggest such a workshop with your
line-of-business and IT experts.
 As a starting point, we recommend a performance
and usage analysis of your current system.

© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Thank you

© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Appendix
with detailed customer cases

Breaking the limits at Würth
We have a slogan at Würth – it is: break your limits. That means that we always want
to get better and better every day. The key value for the business is speeding up key
processes such as MRP, order entry, and invoice management.
Harald Holl, responsible for it infrastructure and data centers at Würth
AT A GLANCE
Objective
Proof of concept
Solution
SAP ERP powered by SAP HANA
Benefits
Accelerate key processes (MRP, order entry, invoicing)
and reduce total cost of ownership (TCO)
Watch the video here

Varian Medical Systems
SAP Business Suite on SAP HANA
Accelerate
revenue forecasting
process
60x
Reduce
Reduce
time required for finan-
cial close (planned)
<1 day
time required to save
complex sales orders
(planned)
Business challenges
 Monthly revenue forecasting process is a “major pain point” as it takes 3–5 hours to
run and often has to be run several times to remove errors
 Saving a sales order takes too long (“user gets a cup of coffee while waiting”)
 Financial close takes too long (currently 5 days)
Technical challenges
 Integrate complex sales orders with project systems
 Utilize complex user exit logic in sales order to create “mirror image” project systems
work breakdown structure (WBS) element for each sales order line item
Benefits
 Improve accuracy and timeliness of revenue forecast provided to Wall Street by
reducing time required for revenue forecasting process from 3–5 hours to 3–4 minutes
 Hope to shorten the time required for financial close below the current 5 days
 Plan to reduce the time required to save a sales order to increase user productivity
and satisfaction
Note: All information and figures were taken from Tom Rodden (director of applications at Varian Medical)
roundtable discussion at SAPPHIRE NOW in 2013.

SPIRIT Aerosystems
Accelerate
Key finance report
7,000x
Reduce
Reduce WIP
Production cycle time
30%
40%
Business challenges
 Timely information is lacking for “orders behind schedule” on the shop floor
 Key finance report takes too long to run
 Financial close takes too long
 Huge amount of data from the shop floor systems
 Transaction system (SAP ERP application) is good, but leaders don’t have the
access to the information they need
Benefits
 Possibly save hundreds of millions of dollars by better utilizing existing production
assets
 Improve production throughput by increasing visibility to leaders on the shop floor
 Free up working capital by reducing work in process (WIP)
“We can save hundreds of millions of dollars by not investing in capital and moving
more product through the factory . . . the SAP HANA tool gives us the opportunity to
avoid additional capital expenditures.”
James Cocca, CIO, Spirit Aerosystems
Note: All information and figures were taken from James Cocca (CIO, Spirit Aerosystems)
roundtable discussion at SAPPHIRE NOW in 2013.

Kennametal: Drilling deeper and faster for
business insight with SAP HANA

Vaillant Group: Heating Up with Improved Products and
Better Service Using SAP HANA
Executive overview

Hilti AG
Faster reporting and analytics
Product: SAP NetWeaver Business Warehouse (SAP NetWeaver BW)
application powered by SAP HANA
Business challenges
 Need for (near) real-time, flexible, agile, anywhere access on any device
 Call for simplification through visualization, participation via self-services
 Ubiquity of data and consumerization of IT
 Need for “people-driven” reporting within global standards
 Higher latency time that killed information value
 Replacing back-office sync
Benefits
 Provides analytical flexibility and agility for regional and national initiatives within a
global standard reporting system with improved performance
 Simplifies SAP NetWeaver BW architecture (CO-PA) with direct impact on support
effort and agility
 Enables successful of implementation of previously unthinkable Big Data scenarios
 Enables simulation and forecast scenarios, which have been impossible before
 Opens the door for sustainability and business transformation
1,000x
faster reporting –
from 77 minutes to
13 seconds
60%
4–10x
improvement in
data load time
faster DataStore
object (DSO)
activation
2-second
latency time: real-
time replication
(SAP Landscape
Transformation
replication server)

Customer case: Japanese technology firm
Summary of validated scenarios
Feasibility
Businessvalue
Legend
LowHigh
Low High
SAP Business
Suite on SAP
HANA
SAP HANA
products
SAP HANA
platform
Phase – deployment road map
Annual revenue: US$2.0 billion
SAP HANA platform: customer-specific
SAP HANA products: SAP NetWeaver BW on SAP
HANA, high-performance applications (HPAs), apps
powered by SAP HANA
Scenario
(business value)
Allocation
optimization
(NA)
Predictive analytics
(US$108,000)
Automated
reporting
(US$1.2 million)
Inventory
optimization
(US$5.7 million)
Inventory visibility
(US$672,000)
1 Short term
SCM: Inventory optimization: reduce inventory
carrying costs, inventory obsolescence
Inventory visibility: cut down the days in
inventory – one-time benefit
Allocation optimization: reduced cycle time,
improved alignment to market dynamics, lower
business risk, ability to adept to future business
requirements such as channel inventory
2 Medium term
SCM: Automated reporting: improve productivity
supply chain planning
Predictive analytics: revenue leakage due to
stock-outs – % of revenue
3 In evaluation
Other functions – to be determined (TBD) in
future discovery workshops
SAP HANA use cases mapped to
industry value map end-to-end solutions

Customer case: Japanese technology firm
SAP HANA platform
Actual SAP customer
business case
Annual benefits, SAP HANA
platform
Annual benefits, applications
powered by SAP HANA
Annual benefits, SAP Business Suite
on SAP HANA: US$7.16 million
Estimated deployment costs
Total transition cost: US$5 million
$
-4.468
-627
5860 5860
130080
-6.000
-4.000
-2.000
0
2.000
4.000
6.000
8.000
2013 Phase 1 Phase 2
Costs SoH Applications Platform
Results over 5 years – SAP Business
Suite on SAP HANA only
Surplus US$25 million
ROI 500 %*
Payback period 12 months*
* To be validated
SoH = SAP Business Suite on SAP HANA
SAP HANA Platform: Anything built on the platform that is customer-specific – new business processes and business models
SAP HANA products: SAP NetWeaver BW powered by SAP HANA; high-performance apps (HPAs); applications – mapped to
inventory value map (IVM) end-to-end (E2E) solutions
Currently available functionality (SP0, 1, 2) – 23 scenarios mapped to IVM E2E solutions, and planned functionality(all of the
E2E solutions on the IVM are in scope)
SAP HANA Platform
SAP HANA products
SAP Business Suite
on SAP HANA

Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation
sessions and may not be completely validated.
An electronics manufacturer – predictive analytics
High tech
Business context and goals
 This electronics manufacturer can increase revenue by reducing its out-of stock products in the
stores. Improved supply chain planning based on predictive modeling will lead to improved
allocation of goods and a better alignment with manufacturing.
Business challenges
 Current data warehouse with historic sales data and stock inventory is updated by offline manual
batch processes and prevents the planning team from performing real-time analysis.
Process innovations
 Near real-time simulation of marketing forecasting
Contribution of SAP HANA
 SAP HANA boosts the performance of SAP NetWeaver BW, helping to overcome many of
today’s limitations on forecasting.
Value drivers/KPIs
 Revenue leakage due to stock-outs (% of revenue)
Innovation scope
SAP HANA products (HPAs, apps)
E2E solution
High tech – integrated sales and
Value potential 2
Feasibility 4
Low High
1 5
Low High
1 5

An electronics manufacturer – automated reporting
High tech
 This manufacturer can improve the productivity of the supply chain planning team by automating
reports and need for decision-making data based on real time SKU-level reporting. This reduces
need for manual consolidation of spreadsheets.
Business challenges
 Planning team is currently looking at sales data and stock inventory that is a few days old
because of the manual steps to create the reports. This increases the amount of work and
negatively impacts the quality of decisions.
Process innovations
 Improved productivity of marketing forecasting
 SAP NetWeaver BW powered by SAP HANA provides instant and automated reports to the
planning team.
Value drivers/KPIs
 Improve productivity supply chain planning
Innovation scope
E2E solution
Value potential 3
Feasibility 4
Low High
1 5
Low High
1 5

An electronics manufacturer – inventory optimization
High tech
 Due to limitations on SKU-level reporting on inventory, the company is suboptimally allocating
products and keeps higher safety stocks than necessary. It seeks improved supply chain
planning based on predictive modeling on SKU level.
Business challenges
 Due to slow queries and data accuracy issues, the planning team is not able to perform analysis
and predictive modeling on SKU level.
Process innovations
 Near real-time visibility on inventory in all channels
 SAP NetWeaver BW powered by SAP HANA provides SKU-level reports to improve inventory
management.
Value drivers/KPIs
 Reduce inventory carrying costs, reduce inventory obsolescence costs
Innovation scope
E2E solution
Value potential 5
Feasibility 3
Low High
1 5
Low High
1 5

Customer case: European technology firm
Feasibility
Businessvalue
Legend
LowHigh
Low High
SAP Business
Suite on SAP
HANA
SAP HANA
products
SAP HANA
platform
Phase – deployment road map
Annual revenue: €5.9 billion
SAP HANA products: SAP NetWeaver BW on SAP
HANA, HPAs, apps powered by SAP HANA
Scenario
(business value)
1 Short term
CRM: Marketing and sales: average annual fund
overspend (in %); trade spending as a % of
revenue; % of qualified leads closed annually;
% of sales transactions where cross-sell/ up-sell
is offered
SCM: Real-time inventory: inventory carrying cost
(% of revenue); overall supply chain planning
cost (% of revenue); revenue loss due to stock-
outs (in %)
2 Medium term
SCM: Automated reporting: improve productivity
supply chain planning)
Predictive analytics (revenue leakage due to
stock-outs (% of revenue)
FIN: Fast financial close: % effort on working with
audit related data (finance); audit cost as a % of
revenue; days to close annual books (in days)
3 In evaluation
Other functions – to be determined in future
discovery workshops
Real-time material
planning
(€8 million)
Real-time inventory
(€12 million)
Fast financial close
(€5.7 million)
Marketing and
sales
(€55 million)
industry value map end-to-end solutions

Customer case: European technology firm
SAP HANA platform
76400
85900
80
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
2013 Phase 1 Phase 2
€
platform
powered by SAP HANA
Annual benefits, SAP Business
Suite on SAP HANA: €86 million
Total transition cost: to be determined
More information: Sander Kapper
Based on actual SAP
customer engagements
SAP HANA Platform
SAP HANA products
SAP Business Suite
on SAP HANA

1 Short term
Finance: Fast financial close
(variable margin analysis)
Sales: Insight-driven sales
(opportunity order analysis)
Marketing: Insight-driven marketing
(predictive scoring - real-time segmentation,
campaign optimization, and affinity analysis)
Service: Insight-driven service
(customer service excellence – mine service
data proactively)
Sourcing: Supplier network traceability
(strategic purchase optimization)
3 In evaluation
Other functions – to be determined in future
discovery workshops
Customer case: Leading U.S. technology firm, high tech
Feasibility
BusinessvalueLowHigh
Low High
Variable margin
analysis
(US$45 million)
Predictive scoring
(US$15 million)
Annual revenue: US$6.2 billion
Opportunity order
analysis
(US$15 million)
Customer service
excellence
(US$37 million)
Supplier network
traceability
(US$13 million)
Legend
SAP Business
Suite on SAP
HANA
SAP HANA
products
SAP HANA
platform
Predictive
analytics
(US$108,000)
SAP HANA products: SAP NetWeaver BW on SAP HANA,
HPAs, apps powered by SAP HANA
Scenario
(business value)
industry value map end-to-end solutions Phase – deployment road map

Customer case: Benefit quantification
SAP HANA platform
-63
-10
45
0
80
-100
-50
0
50
100
150
2013 Phase 1
EXAMPLE
Indicative example
Results over 5 years – SoH only
Surplus US$152 million
ROI 100 %*
Amortization 2 years*
* to be validated
platform: US$80 million
powered by SAP HANA
Annual benefits, SAP Business Suite
on SAP HANA: US$45 million
Total transition cost: US$73 million
More information: Eric Gandhi
$
SAP HANA Platform
SAP HANA products
SAP Business Suite
on SAP HANA

A component manufacturer – real-time pricing and margin analysis
Industrial machinery and components
 Sales teams need real-time pricing and margin analysis at point of sale to respond to fast
changing commodity prices and competitor price movements.
Business challenges
 Respond in real time to fast-changing commodity prices and competitor price movements.
Process innovations
 Real-time analysis of the impact of commodity price changes and competitor price movements
on sales margin and discount offering – required to support telephone and Web-based sales.
 SAP HANA enables real-time analysis of pricing data and assessment of sales margin.
Value drivers/KPIs
 Reduce average discount on sales transactions; optimize the product portfolio; enable cross-
selling/up-selling; improve productivity of pricing management FTEs; improve productivity of IT
FTEs in extracting and reporting on data
Innovation scope
E2E solution
Industrial machinery and components –
collaborative sales force automation
Value potential 5
Feasibility 4
Low High
1 5
Low High
1 5

Delivering Real-Time Business Value for Industrial Machinery and Components

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