Building a Business Case for Innovation: Project Considerations for Cloud, Mobile, Big Data, and Social/Digital Transformations

Building a Business Case for Innovation:
Project Considerations for Cloud, Mobile,
Big Data, and Social/Digital Transformations
Fred Isbell
Senior Director, Head of Thought Leadership, SAP Service & Support Marketing
SAP SE

Building a Business Case for Innovation:
Project Considerations for Cloud, Mobile, Big
Data, and Social/Digital Transformations
• Session Objectives
Provide insight into:
– The next wave of innovative technology and business solutions
– Key insights from industry influencers and experts to assist in building a
business case
– Case studies from SAP projects & customers showcasing the results,
business impact, and best practices to managing next-generation projects
and solutions

Agenda
• Digital Transformation
• Innovation Adoption
• Building a Business Case: The Innovation Solutions Journey:
– Innovation Technology Frameworks
– Cloud, Mobile, Social, and Big Data
– The Internet of Things (IoT)
– Innovation Accelerators
– Solutions and Services
• Resources, More Information & Q&A

The World is Changing Quickly:
Digital Technologies are Here to Stay
Source: SAP 2015

Why do we need to respond to new technology and
innovations?
Bill McDermott
SAP CEO
May 2015
"Innovation has created a
digital economy and
digitization is affecting all
businesses and all industries.
So how do you make this
transition to digital? Simple.
Every business in here today
is in a state of
transformation”.

Digital Transformation – a Definition

SAP End-to-End Digital Business Solution:SAP HANA
Enables Digitization Across 5 Business Pillars
• Through organic innovations and strategic acquisitions, SAP has the best
solution portfolio and expertise required to enable your digital strategy. SAP is
the preferred choice to turn your digital vision into reality.

Who Pioneered these Innovations?
First VPN/Internet Tunneling Software
First Internet & TCP/IP Networking
First Fortune 500 Web Site
First Internet Firewall
First Internet Search Engine
First use of “Business Intelligence” (BI)

Who Pioneered These Innovations?
First Fortune 500 Web Site
First Fortune Internet Firewall
First Internet & TCP/IP Networking
First VPN/Internet Tunneling Software
First Internet Search Engine

Innovation Adoption 101:
The Model & Segmentation
Innovation Adoption:
 A model that classifies
adopters of innovations
based on their level of
readiness to accept new
ideas
 Innovative adoption
characteristics are assigned
to groups -- all innovations
go through a predictable
process before becoming
widely adopted.
 The groups consist of early
adopters, early majority, late
majority, and laggards
Source: dictionary.com
Source: Rogers, G. Moore, MIT Sloan/CAP Gemini
“Crossing the chasm”
Early adopters achieve:
+9% revenue creation
+26% impact to profitability
+12% market valuation

Innovation Adoption 101:
Time to Innovation Adoption
Source: Rogers, Moore, McKinsey
 Inflection point (curve begins
to slow) = point of “critical
mass”
 Key -- get there quickly,
whether users or product
volume, etc
 Failure to “cross the chasm”
(Geoffrey Moore) or reach
critical mass = doomed to a
smaller, sub-optimal market
and much smaller market
share
Source: “No ordinary disruption”, McKinsey, May 2015

Building a Business Case
The Innovation Solutions Journey

My Information Technology (IT) Journey & Navigation
IBM 3270
Terminal
c.1982
Compaq
“Portable”
c. 1983
Tech
Stack
c.2015
Desktop,
Laptop &
iPAQ PDA
c. 1998

Innovation Technology Frameworks
Source: Gartner
Nexus of Forces
The 3rd Platform
Source: IDC

Innovation Technologies Will Drive
Digital Transformation and Business Innovation
Cloud
Abundance of cost-
effective computational
power and storage
Mobile
The new de facto standard
in business interaction
Social
Connected business
and social networks
Big
Data
Real-time analytics
for behavioral and
predictive insights

Innovation Technologies for Digital Transformation
• Software as a Service (SaaS)
• Platform as a Service (Paas)
• Infrastructure as a Service (IaaS)
• Business Process as a Service (BaaS)
• Public Cloud and Private Clouds
• Group & Team Collaboration
• Business Networks
• Where’s the growth?
Tablets and Mobile Devices
• “Consumerization of IT” and “Humanization of IT”
• “Bring Your Own Device” (BYOD)
• A growth engine of the Internet of Things (IoT) and
Big Data & Analytics
• Embrace consumer-like usability, rapid speed of
innovation and quick time-to-market
• Add mobility to applications (ie. CRM, Analytics)
• Metcalfe’s Law – value of networks
• Reed’s Law – value from
scaling social networks
• Pull versus Push
• Best Practices: Learn, Observe, Listen, Jump in and
Actively Participate
• Blurs the line between work and private life even
more
• Add socialization to functions such as sales and
marketing
• Navigating the Data and
Information Explosion
• Business Intelligence& the
Information Worker
• Real-Time Information Access
• Big Data on top of Next-Generation In-memory
Database Technology is the new “Killer App”
• Dashboards & Predictive Analytics
• “Brave New World” of Sports

Technology Services Opportunities:
Three stages of Digital Transformation

Technology Services Considerations:
Project Considerations for Digital Transformation
• Utilize Cloud to create
business-relevant functionality
• Collaboration tools and integration
are to key simplify processes
• Mobility is a key driver of cloud solutions
• Big data is synergistic with the cloud
• Think about the business need & how cloud helps
deliver against those
• Develop a mobility strategy
• Address 3 critical components:
mobile workplace, device
management and processes and integration w/
back-end systems
• Embrace enterprise Mobility solutions that are
strongly influenced by consumer IT trends
• Invest in/focus on unified mobility projects
• Embrace key enabling technologies
• Enable the user/customer experience
• Drive a transformation of your Business &
Technology Strategy & build a culture of innovation,
participation and collaboration
• Enable collaboration across the enterprise and
beyond borders
• Become strategic partner for the digital
transformation process
• Major opportunity for
real-time data analytics
• Prepare for Big Data deployments
and start in a “look-and-learn” mode
• Include business-oriented expertise in your skill
development
• Include customer analysis for next wave of social
and digital transformation
• Prepare for and embrace predictive analytics and
data science

Technology Services Opportunities:
Digital Transformation Services

Innovation Accelerators:
Tools, Methodologies & Frameworks
• Outcomes-based solutions:
– 40% faster time to value & deliver
projects in weeks
– Deliver value throughout the
implementation & dramatically reduce
cost
• SAP Design Thinking & Innovation
Management Solutions:
– Services, applications and workshops
for innovation
– Help IT make itself strategic to the
business by understanding customers
• SAP Activate:
– A unique combination of SAP Best
Practices, Methodology, and SAP
Guided Configuration delivered with a
reference solution

The Internet of Things (IoT)
Source: IDC, Gartner, McKinsey SAP 2015
Five key questions to ask:
1) Business Objective(s)
2) Make/Buy and sourcing
3) Selection of vendors/ecosystem
4) Security
5) Impact on Cloud plans/deployment
Source: “5 Questions every CIO Should Ask about the Internet of Things”
The Enterprisers Project 2915
• Massive amounts of data from
peoples, sensors and devices
growing rapidly
• Massive Growth & Scale:
– Gartner -- IoT will increase
nearly 30-fold from ~900 million
connected devices in 2009 to
more than 26 billion by 2020
– IDC -- IoT spending in 2015 to
exceed $1.7 trillion and 15 billion
devices and grow to $3 trillion
and nearly 30 billion devices by
2020
– McKinsey – 212 Billion
connected devices by 2020

Customers Case Studies from SAP Projects
See the Appendix for Detail on Customer Examples and Case Studies

Navigate Digital Transformation with Leading &
Innovative Consulting & Systems Integrators (CSIs) &
SAP Partners
• Gartner evaluated SAP Service
Providers on their “Ability to
Execute” and “Completeness of
Vision”
• SAP Service & Support is a leader
in the latest 2015 Gartner MQ for
SAP Services
• SAP Strengths:
– Product & Innovations expertise
– Comprehensive of services portfolio
aligned to customer needs
– Increased delivery speed and
minimizing the total cost of
ownership (TCO)
Source: Gartner July 2015
Click here for the latest Gartner MQ report

SAP Service and Support to Drive Your Success
It’s All About Value Across the Customer Lifecycle to
Make the Benefits of Digital Transformation a Reality

SAP is Uniquely Qualified to Master Complexity
For Over 40 Years, SAP Has Led at Every Major
Economic Inflection Point
Simplifying Decisions
Enable 3M rows of shopping data per
minute; 1000+ users; 94% responses in
less than 2 sec. each on “Black Friday”
Retailer with 245M customers
per week across 11K stores
Simplifying Technology
Converted 38TB of data to 8TB in-memory with
SAP HANA to unlock the power
of real-time
Consumer goods firm serving
2B customers worldwide
Simplifying Processes
Coordinate a supply chain of 4 million parts from
1500 suppliers across 30 countries to build one
airplane
Aerospace Manufacturer serving
billions of passengers per year
By solving the worlds most complex business problems
1972 Data Processing 1979 Globalization 1991 Internet 2015 Digital
SAP R/1
SAP R/3
SAP S/4HANA
SAP R/2

SAP Is Uniquely Positioned in the Digital Economy
We are the World’s Largest Provider of
Enterprise Application Software
Delivering Outstanding Results to
Customers and Stakeholders
The Fastest Growing Enterprise Cloud
Company at Scale
And Run the World’s Largest
Business Network

Resources and More Information
• SAP Digitalist: digitalistmag.com
• SAP Service & Support on sap.com:
www.sap.com/services
• Run Simple with SAP Service and Support:
discover.sap.com/service-runsimple
• SAP Services Hub: www.sapserviceshub.com/h/
• SAP Services on SAP Community Network (SCN):
scn.sap.com/community/services

Thank You!
Fred Isbell
Senior Director,
SAP Service & Support Marketing
fred.isbell@sap.com
www.sap.com/services
Twitter: Fmisbell
Facebook: Fred M Isbell
Linked In: www.linkedin.com/pub/fred-isbell/0/827/903Edit

Appendix: Customer
Examples and Case Studies

McLaren Group: Chasing the Perfect Lap
with SAP HANA® Enterprise Cloud
Company
McLaren Group
Headquarters
Woking, United Kingdom
Industry
Automotive
Products and Services
Grand Prix racing and
automotive manufacturing,
research, and development
Employees
2,300
Revenue
£268 million (2013)
(€334.2 million)
Web Site
www.mclaren.com/group
Objectives
 Drive innovation with a single groupwide IT platform to support
ambitious growth plans
 Speed and simplify processes across the group
 Deepen insight into group data for a sharper competitive edge
Why SAP
 Expertise and research and development skills that make SAP a
powerful partner in the evolution of ideas and technology to challenge
the status quo and improve competitive standing
 From-the-source guidance only available from the SAP® Services
organization
 Fantastic synergy of corporate values between McLaren and SAP
 Opportunity to take SAP Business Suite powered by SAP HANA® to
the next level of innovation and simplicity with the SAP HANA
Enterprise Cloud service
Future plans
 Expand usage across the applied technologies and automotive
divisions
 Deploy SAP Mobile Platform to control mobile devices and increase
efficiency
 Evolve the internal center of excellence for SAP to unify business and
IT as one virtual team
“Using SAP HANA Enterprise Cloud, we have standardized our IT and
lifted the burden of managing the IT environment ourselves. Now we
can quickly add new business units and processes without increasing
costs. It will help us fully benefit from SAP Business Suite powered by
SAP HANA across all our core operations.”
Stuart Birrell , CIO, McLaren Group
Simpler
Simpler IT using a cloud-based
deployment model, reducing
total cost of ownership
Faster
Fast deployments across all
lines of business, including HR,
finance, sales and distribution,
materials management, and
project management
Unified
Centralization of decision
making and management
information in a single system
Efficient
Simpler operations for better
spend management, optimized
resources, and easier financial
reporting compliance
33344 (14/09) This content is approved by the customer and may not be altered under any circumstances.
Click HERE for the SAP HEC Video

La Trobe University: A Model for Success Amid the
Rapidly Shifting Dynamics of Higher Education
Organization
La Trobe University
Location
Melbourne, Australia
Industry
Higher education and
research
Undergraduate and
postgraduate education,
research
Employees
3,000
Web Site
www.latrobe.edu.au
Objectives
 Compete effectively for students and funding in a challenging,
increasingly complex higher education environment
 Push the boundaries of the educational experience for students
 Lift the administrative overhead burden from the teaching staff and
researchers so they can concentrate on their core activities and most
essential tasks
Why SAP
 Supplier of the business applications the university already uses
 Close alignment of SAP’s cloud strategy with the university’s plans
Resolution
 Became the first organization in the world to go live with SAP®
S/4HANA and the SAP Simple Finance solution deployed using the
SAP HANA® Enterprise Cloud service
 Adopted solutions from SuccessFactors, an SAP company, for human
capital management
 Took advantage of SAP Service and Support offerings to help with
implementations
Benefits
 Enhanced the user experience
 Simplified processes with no latency
 Increased data reliability
“As the first to adopt SAP Simple Finance, we will benefit from instant
insight to drive value through planning, analysis, prediction, and
simulation. We have a term for it: Brilliant Basics.”
Peter Nikoletatos, Executive Director and CIO, La Trobe University
20%
Efficiency increase
Up to 7x
Faster business processes
4
People now running payroll, down
from 12–15
100%
Cloud-based environment within 1
year

Standard Bank Group
SAP Mobile Solutions for inclusive banking initiative

SAP Runs SAP: Enterprise Mobility
Enabling a Mobile Workforce
Samsung and Google
Nexus devices
9,500+ devices
3,000+ Microsoft Surface
Start of Microsoft Lumia
4,500+ Phones
27,500+ iPads
37,500+ iPhones
100+ Watches
50,000+
employees equipped
with internal apps
6,500+
BYOD users
67
Fiori apps
* Transactional: 24
* Factsheets: 24
* Analytical: 8
* Custom: 11
Mobile for Everyone
70 Mobile native apps
* SAP products: 14
* Custom/In-house only: 46
* 3rd party: 10

SAP Customer Success: The Digitalist
Social Media and Digital Transformation
Executive Research
Executive
Quarterly
Thought Leadership BLOGS
www.digitalistmag.com
Social Media Sharing
• SAP platform for Thought
Leadership and Executive
Research
• BLOG contributions from
internal and external
thought leaders
• New Executive Quarterly
tablet magazine
• Executive Research
including white papers,
infographics and more
• All shared & promoted
through social media
marketing
• 4.5M+ page views in
2014

KAESER KOMPRESSOREN Starts its
real-time journey with SAP HANA

Norwegian Cruise Line Leverages Analytics
and Big Data for a 360-degree View of Customers
“With SAP HANA, we’re going from a narrow
view of customers to a 360-degree view. The
exciting part is we will soon be able to use
predictive analytics to understand today and
then prepare for the trends we’ll face in six
months.”
– Chad Berkshire, Vice-president of
Operations, Finance, Norwegian Cruise
Line
Click HERE for the Norwegian Cruise Line Video
• Business Goals:
– Eliminate wasteful spending & reinvest savings in passenger
experience
– Consolidate silos of heterogeneous data & provide company-wide
analytics
– Unify data & enable real-time, self-serve analytics capabilities with
SAP BusinessObjects Business Intelligence BI Suite & SAP HANA
• Solution Implemented:
– With assistance from SAP Services, implement SAP
BusinessObjects BI Suite & SAP HANA
– Provide integrated data analysis tools and anytime/anywhere data
access with SAP BusinessObjects Web Intelligence and SAP
BusinessObjects Explorer
• Key Benefits:
– Rank vendors by spending and renegotiate contracts, reinvest
savings in passenger benefits
– Enabled real-time, self-service data analysis capabilities –
decreased expenses, improved worker efficiency, & increase
revenue
– Eliminated time-consuming manual data processes requiring IT
assistance
• Metrics/KPIs:
– $700,000 saved via merging one vendor’s contracts
– 167x more data – now processing 250 million rows
– Sub-second response time – Report generation cut from 5 days to
real-time

NHL.com Real-time Stats and
SAP HANA Enterprise Cloud (HEC)
NHL Customer Testimonial Video
“The Late One”:
NHL Stats:
0 GP, 0 G 0 A 0 Pts 0 PM
“Hockey is extremely fast-paced with very little stoppage in play which
results in many aspects of the game failing to show up in the box score. In
partnering with SAP and using its best-in-class SAP HANA Enterprise
Cloud Service, we are now able to capture data points like never before and
present existing and new statistics in a visually appealing way.”
John Collins, NHL Chief Operating Officer
• Initial Implementation:
– NHL.com powered by SAP HANA
Enterprise Cloud, SAP analytics and
data visualization
– Goal: increase fan engagement &
deepen loyalty
– Includes new design, introduction of
enhanced statistics & visualization
capabilities
– Playoff prediction tool/bracket challenge
• Subsequent phases:
– Advanced filtering
– Goalie rating statistics and team power
index
– Integration of all historical data thru 1917

NBA Real-Time Statistics and SAP HANA
Click HERE for the NBA
Customer Journey

Mercedes-AMG SAP Business Suite
powered by SAP HANA & Internet of Things (IoT)
Click HERE for the Mercedes
AMG Customer Journey:

ConAgra Foods Implements SAP HANA in Weeks
Company or Organization
ConAgra Foods
Headquarters or Location
Omaha, Nebraska
Industry
Consumer Products
Company Revenue
13B USD
About ConAgra Foods
ConAgra Foods fills the refrigerators, freezers, and pantries of most US
households. The company produces name-brand packaged and frozen
foods. Sold in retail outlets of all kind. It is also one of the larger
manufacturers of ingredients for the US foodservice, food manufacturing,
and industrial markets.
Project Scope
 RDS Financial Acceleration with SAP HANA
 RDS Profit Analysis with SAP HANA
Dramatically improved the finance end user experience using HANA.
The aim was to accelerate the provision of data in finance, controlling,
material ledger, production cost analysis, and COPA.
ConAgra saw the fixed scope of the RDS as a way to prove the
technology and deliver value while also keeping the project and risk
manageable
The fixed fee nature of the engagement showed SAP was invested in the
customer’s success and was confident it could be done
Team of 8: 90% local consultants working on site 57%
Worked with an extended team to resolve issues: MaxAttention, HANA
COE, HANA Ambassador, RDS package teams and HANA development
4 and 8
weeks
Implementations of profitability
analysis and finance and
controlling solutions
(respectively)
92.9%Faster transfer of material
ledger data (7 hours to 30
minutes)
3 days
Reduction to month-end
forecasting cycle

Beiersdorf Employee & Customer
Engagement with SAP Innovation Management
Company
Beiersdorf Shared Services
GmbH
Headquarters
Hamburg, Germany
Industry
Professional services –
professional accounting and
IT services
Accounting and IT services
for Beiersdorf companies in
260 locations worldwide
Employees
More than 400
Web Site
www.beiersdorf.com
Objectives
 Actively shape the future
 Gain awareness of market development
 Achieve a transparent vision to decide the company strategy
Why SAP
 Strategic partner that Beiersdorf Shared Services trusted to serve as
a partner for innovation
 Benefit from innovation power and speed of SAP
 Ready configuration and use of the SAP® Innovation Management
solution, with no user training necessary
 Unique features, like an idea coach and expert finder
Resolution
 Implemented SAP Innovation Management within 20 working days,
with help from SAP Consulting and a rapid-deployment approach
Benefits
 Anchored a new innovation culture with SAP Innovation Management
 Provided transparency for everybody about what happens with
submitted ideas
 Made innovation and idea management measurable
 Eliminated the need for user training, thanks to the software’s
appealing and easy-to-use interface
3x
The idea submissions
within 2 months
Simpler
User interface, allowing the
introduction of a quick-start
program
Accelerated
Submission of ideas per 100
users, from 1 submission
every 6 months to over 4 per
month within 2 months of
using the new solution
“With SAP Innovation Management we increased the simplicity of the innovation process and
projects. This easy-to-use solution tripled the number of idea submissions within only two
months.”
Francesco Goertz, Regional Demand and Innovation Manager, ITG, Beiersdorf Shared Services GmbH

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