Sap IoT Transformation Best Practices
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The document outlines SAP's strategies and best practices for Internet of Things (IoT) transformations, focusing on case studies and frameworks for improving business models and customer engagement. Notable examples include the Tennant case study illustrating how IoT solutions have led to increased efficiency and service models. It emphasizes the importance of rapidly prototyping IoT concepts and integrating them into business processes to drive digital innovation.
Sap IoT Transformation Best Practices
- 1. Internal Telit IoT Innovation Conference 2017 Deliver High Value IoT Transformations Andrew LeBlanc, PE Chief Enterprise Architect, SAP America Support Digital Transformation – EA, Analytics & IoT February 7, 2017 Internal
- 2. © 2017 SAP SE or an SAP affiliate company. All rights reserved. 2Public Disclaimer The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. Except for your obligation to protect confidential information, this presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or any related document, or to develop or release any functionality mentioned therein. This presentation, or any related document and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this presentation is not a commitment, promise or legal obligation to deliver any material, code or functionality. This presentation is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This presentation is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or gross negligence. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
- 3. © 2017 SAP SE or an SAP affiliate company. All rights reserved. 3Public Agenda • Customer IoT Transformation Strategy • Business Model & Standard Patterns • Case Study: Tennant • Takeaways
- 4. © 2017 SAP SE or an SAP affiliate company. All rights reserved. 4Public Sample SAP Customers…deploying IoT Common best practices to their success and achieving value Real time costing increases efficiency Energy apps lower spend based on power contracts Digital operations - increased performance (-7% cost, +19% net margin, +25% dividend) Industrie 4.0 Award Winner 99.5% First Pass Yield 100% Track and Trace “Made in China 2025” pilot project – MES on HANA – Increased production by 25% - Integrated to thousands of sensors and equipment Real time operational surveillance of well performance on HANA Up to 30% improvements in reporting speed 8-10% reduction in maintenance costs Optimized maintenance 3 – 5% increase equipment and production efficiency Innovation in Insurance Telematics Improve fleet utilization, efficiency and transportation services Higher customer loyalty and satisfaction Increased transaction volumes through new sales channels Increased adoption of mobile app Increased safety and security in truck parking Improved service levels, higher efficiency and productivity Building innovative applications based on the data of connected trailers Improve service levels for customers & new business model Improve fleet productivity & transparency Visibilityinto customer’s fitness footprintand workout habits using IOT. Engage Better and Grow revenue 100% Improvement on Speed of information retrieval & reliabilityof data send to ERP 15% Reduction in driver turnover in the first year Improved Talent development and driver safety Better Patient Engagement– Diabetesconnected kit Better customer service, reducecarbonfootprint and pay per use model EfficientSupplychain & cost reductionwith predictivefor Container Repositioning 100% Flood Reduction Increase Forklift operator safety and real time insights
- 5. © 2017 SAP SE or an SAP affiliate company. All rights reserved. 5Public SAP Leonardo Innovation Portfolio SAP Leonardo connects things with people and processes Outcomes Things Valuechain SAP Device Management by Telit
- 6. © 2017 SAP SE or an SAP affiliate company. All rights reserved. 6Public SAP Leonardo Jumpstart – 3 Steps to Outcome Rapid Design & Pilot Initial End to End Scenario Explore Create Implement • Understand the impact of IoT on the business • Discuss core business processes and new business models • Identify area for innovation IoT Concept • Narrow down on one core business process • Redesign business process/ model on real data • Rapid prototyping to demonstrate vision IoT Design • Realize former prototype as live pilot project • Integrate into one business scenario • Provide software as a service for limited time • Define IoT roadmap for next processes Sprint Zero – Build IoT Scenario 3 STEPS TO OUTCOME 1 DAY 1 WEEK 3 MONTHS
- 7. © 2017 SAP SE or an SAP affiliate company. All rights reserved. 7Public Explore: IoT Concept - Design Thinking - Innovation Matrix Successful IoT Transformation Requires Three Key Innovation Drivers Desirability Needs Viability Business Model Feasibility Technology InnovationMatrix Viability DesirabilityFeasibility Today Future SAP Template & Method for Desirable, Feasible & Viable Concept
- 8. © 2017 SAP SE or an SAP affiliate company. All rights reserved. 8Public Create: Business Model Development & Innovation (BMDI) Method to validate viability for an IoT - related Business Model Value Network / Ecosystem Find the greatest levers & niches in ecosystem Business Model Canvas Viability: exploit full potential of (disruptive) inventions InnovationMatrix Ÿ Manage Key drivers and dynamics over time Ÿ Trend Management Ÿ Basis for Scenarios & Simulations Design Thinking for orchestration & needs perspective
- 9. © 2017 SAP SE or an SAP affiliate company. All rights reserved. 9Public© 2015 SAP SE or an SAP affiliate company. All rights reserved. 9Public REIMAGINE Reimagined digitized products Reimagined digitized processes Reimagined digitized business models Create: Internet of Things – Path to End to End Scenario Building a Solid Foundation for IoT Transformation Assets / Devices SAP Cloud Platform & SAP Leonardo Foundation SAPLeonardo Foundation Standard Services Predictive Maintenance and Service (PdMS) Connected Manufacturing Connected Products Network Logistics Hub Vehicle Insights & Vehicle Networks Asset Intelligence Network And more…… SAPLeonardo ConnectedAPPS CUSTOMERS SAPSYSTEMLANDSCAPE SAP S/4 HANA or ERP Digital Core CONNECT & TRANSFORM New Core Business Processes „Digitalization Platform“ Custom IoT App SAP IoT App Customer OR Customer of yourCustomer Digital Core
- 10. © 2017 SAP SE or an SAP affiliate company. All rights reserved. 10Public ExploreCreate: IoT Accelerators Patterns Two Sample Accelerators - IoT Technology Radar & IoT Business Model Patterns
- 11. © 2017 SAP SE or an SAP affiliate company. All rights reserved. 11Public IoT Transformation Case: Tennant From End to End Process to Innovative Business Models § Founded, 1870, Minneapolis, MN § 812 M USD Revenue, 2015 § 3200 Employees COATINGSTENNANTTRUE® OUTDOOR ORBIO® TECHNOLOGIES INDUSTRIAL COMMERCIAL Equipment, Parts & Service to maintain industrial & commercial surfaces
- 12. © 2017 SAP SE or an SAP affiliate company. All rights reserved. 12Public Empower Customer with Data – Insights - Action Reduce Their Cost to Clean – Desirable, Viable Concept
- 13. © 2017 SAP SE or an SAP affiliate company. All rights reserved. 13Public Tennant IRIS Asset Management Solution Feasible: End to End Scenario - Devices to Core Business Processes Asset Gateway OT Device & Integration Intelligent Remote Information System ITOT Big Data, Analytics & Services SAP Leonardo IoT Enterprise Gateway OT Management DMI Intelliportal IT Core Business Processes Equipment, Customer Etc. Billing, Orders, Etc. SAP ERP MyTennant Portal Document & Collaboration Email Notification User Interfaces = Available, not used
- 14. © 2017 SAP SE or an SAP affiliate company. All rights reserved. 14Public Evolve Toward Value & Solution Provider Operational Consistency = Labor Savings Minimize Cost of Lost Assets
- 15. © 2017 SAP SE or an SAP affiliate company. All rights reserved. 15Public Tennant’s Field Service Value Evolution Incremental Growth toward options for Innovative Business Models Service Scheduling •Hours •Reduce # of visits Remote Diagnostics •Battery/DTC codes •Increase FTR Predictive Failures • Decrease in BD visits & costs Remote Service •Reduced cost to service 2013 Enables Tennant to offer more “All In Solutions”… Covered with “Usage based Service Scheduling” Covered with analytics Predictive Maintenance and Service RemoteOperation or CleaningAsAService
- 16. © 2017 SAP SE or an SAP affiliate company. All rights reserved. 16Public IRIS® Helps Tennant Break Through to $1 Billion Imagine the Future Possibilities! § Grow Machine Sales ‒ IRIS® increases Tennant’s differentiation § Grow Service Attachment and Support ‒ Service reporting through portal ‒ IRIS bundled with Gold/Silver § Customer Intimacy to Become Consultant ‒ Continuous value add to customers Impact Detection Orbio Usage Maintenance Diagnostics Usage by Operator ID
- 17. © 2017 SAP SE or an SAP affiliate company. All rights reserved. 17Public Next Steps for You Ø Think Big, start small Ø Define initial IoT Concept, reusing standard patterns -> Discovery Workshop Ø Design your IoT Concept v End to end process i.e. PdMS, Connected Products, etc. v Business model, that is Desirable, Feasible, and Viable Ø Rapidly deploy End to End Process. Incrementally add capabilities Ø Achieve maturity to quickly adjust and build transformative business models andrew-leblanc Develop your IoT Prototype for Free Imagine IoT
- 18. Thank you Contact information: Andrew LeBlanc, PE Chief Enterprise Architect SAP Digital Business Services PE VA Digital Transformation – EA, IoT, Analytics andrew.leblanc@sap.com +1.404.641.6944 linkedin.com/in/andrew-leblanc