Sap Leonardo IoT Overview

Internal
SAP Leonardo
Pierre Erasmus
IoT Solution Owner
January, 2017
Internal

Internal© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 2
SAP Leonardo IoT
 Background: SAP Leonardo IoT a Strategic Pillar for SAP
 SAP Leonardo IoT – “This is REAL”
• Strategy, and Portfolio overview
• IOT Solution Overview & Customers
 SAP Leonardo IoT – 2017 Priorities
• Priorities
• Partnerships

The Internet of Things – Strategic Pillar

SAP Approach to Digitization – Connect the Enterprise to the World
Customer Experience
Omni-Channels
Workforce
Engagement
Supplier Collaboration
Business Networks
Internet of Things
& Big Data
Digital Core
… where IoT is the fourth pillar for a Digital Enterprise

SAP Leonardo Strategy
SAP Leonardo connects things with
people and processes

SAP Leonardo Strategy
SAP Leonardo connects things with
people and processes
SAP provides a highly innovative IoT solution portfolio which extends the
digital core with adaptive applications, big data management and
connectivity to enable
• New Business Processes (e.g. Industry 4.0)
• New Business Models (e.g. pay per use)
• New Work Environments (e.g. SAP Leonardo Bridge)

Things Processes
Application
Platform
IoT
Applications
1. Live insights
Condition monitoring,
location, environment, usage,
consumption
2. Predictive analytics
Equipment health, remaining lifetime,
demand and supply forecast, time of
arrival
3. Optimize processes
Lower maintenance cost, higher
efficiency, reduced waste, fewer
claims, faster response, shorter
cycles
4. New business models
Usage-based pricing, product-as-
a-service
SAP Leonardo Innovation Portfolio: From Things to Outcomes

Thinking about IoT – Building Blocks of a Solution

SAP Leonardo Innovation Portfolio
SAP Leonardo
Edge
SAP Cloud Platform / SAP HANA platform
SAP Leonardo Foundation
SAP Leonardo Bridge
Connected
Products
Connected
Assets
Connected
People
Connected
Fleet
Product Insights
Goods & Equipment
Supply Networks
Fixed Asset Insights
Manufacturing Execution
Manufacturing Networks
Mobile Asset Insights
Logistics Safety
Logistics Networks
Building Insights
Construction
Energy Grids
Market Insights
Rural Areas
Urban Areas
Work
Health & Sports
Homes
Connected
Infrastructure
Connected
Markets
IoT Applications
1
IoT Edge
Connectivity, Security and
Edge Computing
3
IoT Foundation & Platform
IoT Business Services (incl. Application Services, machine learning, predictive algorithms,..)
IoT Technical Services (incl. HCP IOT Services, SDS, RDS, Messaging, Integration, ..)
SAP Cloud Platform / SAP HANA platform (incl. Data Management & Big Data Hub)
2

Industry
view
Line of
Business
view
SAP
Leonardo
Portfolio
Technology
view
LoB Digital Supply Chain
(Business Process View)
• Digital Business Planning
• Digital Response & Supply
• Digital Logistics
• Digital Product Innovation
• Digital Manufacturing
• Digital Operations
Connecting Things with People and Processes
Solution Explorer 2017
Industry Digital Processes
(Business Process View)
Industry Value Maps
Coming Soon
SAP Leonardo Portfolio
(“Things” View)
• Connected Products
• Connected Assets
• Connected Fleet
• Connected Infrastructure
• Connected Markets
• Connected People
SAP Leonardo Foundation & Edge
(“Technical” View)
• SAP Leonardo for IoT business services
• SAP Leonardo for IoT technical services
• SAP Leonardo for IoT edge and connectivity

SAP Leonardo (IoT) Connected Things
Connected
Products
Connected
Assets
Connected
People
Connected
Fleet
Product Insights
Goods & Equipment
Supply Networks
Logistics Safety
Logistics Networks
Building Insights
Construction
Energy Grids
Market Insights
Rural Areas
Urban Areas
Work
Health & Sports
Homes
Connected
Infrastructure
Connected
Markets
Components
Coffee Makers
Vending Machines
Coolers
Drills
White Goods
Other low value / high
volume ‘things’
Machines for fabrication,
assembly or packaging
Wind Turbines
Large Drives
Generators
Vessels / Tanks
Pumps
Other high value / low
volume ‘things’
Cars
Trucks
Rail
Aircraft
Ships
Construction Machines
Containers & HUs
Other moving ‘things’
Commercial Buildings
Pipelines
Utility Grids
Telecommunication &
Data networks
Data centers
Other networked ‘things’
Retail Spaces
Public Spaces
Farms
Cities
Other ‘spaces’
Humans

100+ SAP Customers…deploying IoT
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
Visibility into customer’s
fitness footprint and workout
habits using IOT. Engage
Better and Grow revenue
100% Improvement on
Speed of information
retrieval & reliability of
data send to ERP
15% Reduction in driver
turnover in the first year
Improved Talent development
and driver safety
Better Patient Engagement –
Diabetes connected kit
Better customer service,
reduce carbon footprint
and pay per use model
Efficient Supply chain
& cost reduction with
predictive for Container
Repositioning
100% Flood Reduction
Increase Forklift operator
safety and real time insights

SAP Leonardo Innovation Portfolio – IoT Solutions in Detail
- IOT Applications
- IOT Foundation (Business & Technical Services)
- IOT Edge

Connected
Markets
Connected
Infrastructure
Connected
Products
Product & Project Network*
Engineering Control Center
Product Lifecycle Costing
Ariba Sourcing
* future scope
Product Insights
Connected
Assets
Connected
Fleet
Connected
People
Connected Goods
IBP for response & supply
Hybris Billing
Goods & Equipment
Supply Chain Control Tower
Track & Trace*
Ariba Advanced Supply
Chain Automation
Supply Networks
Asset Intelligence Network
Predictive Maintenance
Work Manager
Ariba Advanced Supply
Chain Automation
Manufacturing Integration
& Intelligence
Plant Connectivity
Manufacturing Integration &
Intelligence
Global Batch Traceability
Track & Trace*
Distributed Manufacturing*
Vehicle Insights
Transportation Safety*
Connected Parking
EHS dangerous goods
Logistics Safety
Track & Trace*
Yard Logistics
Warehouse Management
Networked Logistics Hub
Vehicle Networks
Logistics Networks
Real-Estate Cockpit
Plant Maintenance
Energy Management*
Ariba Procurement
Building Insights
Project Management
Track & Trace
Yard Logistics
Construction
Manufacturing Integration &
Intelligence
Energy Grids
Customer Activity Repository
Connected Goods
Connected Marketing
Market Insights
Vehicle Insights
Connected Agribusiness*
Rural Areas
Networked Logistics Hub
(Ports)
Smart Traffic
Connected Parking
Urban Areas
Smart Operations Room*
Knowledge Workspace*
SAP JAM
People and Work
Connected Goods
Connected Patient*
People and Health
Connected Homes*
(Insurance)
People and Homes
In 2017 SAP is positioning six IoT application categories
SAP Leonardo Innovation Portfolio for IoT Applications
IOT Applications
IOT Foundation &
Platform
IOT Edge

Connected Assets – Fixed Assets Insights
SAP Predictive Maintenance & Services, optimize asset performance along their lifecycle
Challenges BenefitsSAP Predictive Maintenance & Service
Under-
utilization
of assets
Late awareness
of issues
Unplanned
Downtime View on Past
Distributed
Data
Lack of
Process
Integration
Maintenance
Cost
Condition
Monitoring
Availability and
Utilization
Fewer Warranty
Claims
Replacement
Decisions
Insight and
Usage Behavior
OT
Integration
Insight
Provider
Failure Analysis
& Prediction
EAM
Integration
S/4HANA HANA SAP Hybris Service
Vibration analysis (VA)
Machine Health
Control Center (MHCC)
Emerging Issues Detection (EID)
IOT Applications
IOT Foundation &
Platform
IOT Edge

Connected Assets
Source: TrenItalia
“Reduce maintenance costs by 8
to 10% – Increase asset
utilization”

SAP Predictive Maintenance and Service
Analyze and monitor equipment
data and correlate with
business information to predict
future malfunctions
Sense operational data from
equipments
Monitor
Analyze
Predict
Act
Sense
Optimize maintenance and
service operations and
eliminate unnecessary
maintenance costs.
-44% Lower unplanned
downtime -17% Lower annual service and maintenance
costs +28% Higher return on assets
Typical results*
Organizations adopting preventive and predictive maintenance and service approach as compared to organizations
practicing reactive maintenance and service
* SAP performance benchmarking

Connected Assets – Fixed Asset Insights
SAP Assets Intelligence Network, a network to bring together business partners
Challenges BenefitsSAP Asset Intelligence Network
Lack of Asset
Information
Outdated
Work
Lack of
Collaboration
No Common
Definition
No Standardized
Model
Information
Silos
Revenue
Stream
Cost
Savings
Insight on
Customer Base
Customer
Satisfaction
Sharing of Work
Activities
Establish
Channel to
Operators
Provider &
Operator
Network
Secure
Infrastructure
Global
Equipment
Registry
Shared Model
Database
S/4HANA
Global
Inventory
Asset
Lifecycle
Work
Scheduling
Benchmarking
Pay on
Performance
Lease
Management
Equipment
History
Operators
OEMs &
Service
Providers
IOT Applications
IOT Foundation &
Platform
IOT Edge

Source: SAP

Connected Assets – Manufacturing Execution
Connected Manufacturing: Connecting production systems to core business processes with an end-to-end visibility
Challenges BenefitsSAP Connected Manufacturing
Operations
in Silos
Quality
Requirements
Manual
Reporting
Supply Chain
Compliance
Non-analytical
Decisions
IT-OT
Convergence
Overall
Effectiveness
Delivery
Time
Cost
Reductions Traceability
Product
Network
Process
Optimization
Infinite
Insights
Plant
Connectivity
Smart Data
Streaming
Augmented
Beauty
S/4HANA Mll Manufacturing Execution Suite
65% 6h
7-12%
IOT Applications
IOT Foundation &
Platform
IOT Edge

Connected Assets – Manufacturing Execution
Source: Harley Davidson
Reduced production lead
time for customized
motorbikes from 21-days
cycle to 6 hours

SAP Distributed Manufacturing: Cloud Collaboration Platform for Customers,
Service Bureaus, Material Providers and OEM’s with SAP Integration
Service Bureaus
Customer
Make Internally
SAP
Distributed
Manufacturing
Quality Collaboration
Material
Providers –
OEM’s –
Service
Providers
Part Specification
Design Discussion
Quality Collaboration
Operative
Procurement
Definition of print parameters, initial pricing and RFQ Integration, Design Collaboration, First Article inspection
for sample parts and embedded conversations. Having a defined base for replenishment
Master Data
RFQ Integration
Material Requirements
Planning
SAP
Integration
(optional)

Internal© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 30SAP Confidential
1 100 1,000 5,000 10,000 100,000 1,000,000
RelativeCost
Number of Units per Year
Cost Per Unit
3DP vs. Traditional
Traditional
Manufacturing
Cost Curve
Current 3D Printing Cost
3D Printing can make
economic sense for
quantities from 1 up to
1,000 depending
It can be the technology
of choice for lot size 1
and smaller series with
fast time to market
1
2
Future 3D Printing Cost
Status Today
3D Printing Cost Curve – numbers are for syntetic parts
Conclusions
Printers became significantly faster and more accurate – resulting in a
decreased cost curve and readiness for service parts / production parts

Internal© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 31SAP Confidential
3D Printing Cost Drivers
Production
BOM
Manufacturing Costs
Storage &
Warehouse
Taxes
Import, export, etc..
Transportation
&
Shipping
Standard Manufacturing
Additive Manufacturing
3D Printing
+
+ + +-
- - -

Connected Fleet – Mobile Asset Insights
SAP Vehicle Insights reimagine world of moving assets
Challenges BenefitsSAP Vehicle Insights
Innovative &
new business
models
Connect &
Store data
from Millions
of Vehicle
Location
Transparency
Analytical
Insights for
moving assets
Performance
and Scale
Driver Score
Card
Assets
Uptime
New revenue
model
Driver training
& Safety
Sustainability
Risk ratings
Business
Integration
Vehicle
Telemetry Geo-tracking
Real-time
insights
S/4HANA
Remote vehicle diagnostics Usage based insuranceCar fleet analytics
Digital farmingCommerical fleet managementConnected Logistics & Delivery
IOT Applications
IOT Foundation &
Platform
IOT Edge

SAP Vehicle Insights’ broad variety of customer specific scenarios
Reimagine the world of moving assets
Remote vehicle diagnostics Usage based insuranceCar fleet analytics
Connected AgricultureCommercial fleet managementConnected Logistics & Delivery

SAP Vehicle Insights – Live BusinessSAP Vehicle Insight Solution Clusters
Driving
Performance
Predictions
Vehicle Event-
based Alerting
Arrival times &
Routing Analysis
Vehicle Diagnostic
Trouble Code
Analysis
Virtual Fencing &
Area Monitoring
Fleet Monitoring &
Vehicle Health
Live Vehicle
Tracking
Vehicle Flow
Optimization & Idle
time reduction
Monitor Driver –
related Events
Partner Solution
& Services
Fuel consumption
analysis
Reverse
Geocoding and
telematics data
enrichment
Partner Solution
& Services
Partner Solution
& Services
Partner Solution
& Services
Partner Solution
& Services
Vehicle Fleet Management
Insurance Telematics
Logistics & Delivery
Vehicle Diagnostics
Partner Solution
& Services
Tracking > Alerting > Analytics > Monitoring > Events Improvements

Connected Fleet - Logistics Networks
Challenges BenefitsSAP Networked Logistics Hub
Manual
Efforts
Shipment
Delays
Location
Transparency
Turnover of
Goods
Wrong
Decisions
Inter-
Organizational
Collaboration
Waiting
Time/Truck*
Increase in
Cargo Handling*
Goods
Throughput
Improved
Efficiency
Less
Environmental
Impact
Optimized Hub
Traffic
Situation
Analysis Geo-tracking
Intelligent
Messaging
Digital
Collaboration
S/4HANA
Optimize across the ecosystem with real-time transparency, SAP Networked Logistics Hub
Sense Act &
Respond
-5min 2x
IOT Applications
IOT Foundation &
Platform
IOT Edge

Connecting Fleet – Logistics Network
Source: Hafen Hamburg

Connected Fleet – Logistics Network
Challenges BenefitsSAP Vehicles Network
Traffic from
drivers looking
for parking
Rapid Mobile
Innovation
Simplified
Fueling
No parking
space?
Customer
Satisfaction
Omni channel
customer service
Simplified
Parking /Fueling
Omni channel
customer service
Mobile
Technology Sensors
Real-time
Insight
+5% +7%
SAP Vehicles Network, a network to bring together business partners
30%
IOT Applications
IOT Foundation &
Platform
IOT Edge

Connecting Fleet – Logistics Network
Source: Hafen Hamburg
 5,000 hours less truck time each day
 2x increase in cargo handling

Connected Markets – Urban Areas
Seeking better parking experience with SAP Connected Parking
Outdated parking systems and on-
premises infrastructure that are costly
to maintain, hard to update and difficult
to extend.
Staff-intensive
facility
management,
requiring high
onsite presence
Frictionless
parking access &
revenue control
Parking
reservation,
transaction &
activity
management
remote facility
management
capabilities
Lower TCO of
parking operation
Offer frictionless
parking
experience
Optimize facility
usage and
revenue across
multiple
locations
Profit from real-
time access to
all revenue data
Inflexible access
& revenue control
Poor visibility
into inventory
and revenue
streams
Near real time
alerts
Scale and
improve facility
management and
customer support
Hardware and IT
skills at parking
operator level
Manage parking
facilities remotely
from any device
at any time
Challenges BenefitsSAP Connected Parking
IOT Applications
IOT Foundation &
Platform
IOT Edge

Connected Products – Goods & Equipment
Challenges BenefitsSAP Connected Goods
Lack of device
information
Missing
Devices
Storage
Conditions Out of Stock
Manual Efforts Lost Revenue
Usage
Patterns
Cost
Savings
Condition
Monitoring
Reduce Out of
Stock Scenarios
Locating of
Devices
Customer
Satisfaction
Connected
Mass Market
Devices
Alerts
Remote
Monitoring
Real-time
Insights
S/4HANA
Maximize the value of mass markets devices with SAP Connected Goods
Coolers Vending Machines Power Tools
IOT Applications
IOT Foundation &
Platform
IOT Edge

SAP Leonardo Innovation Portfolio
SAP Leonardo
Edge
SAP HANA Cloud Platform / SAP HANA platform
SAP Leonardo Foundation
SAP Leonardo Bridge
Connected
Products
Connected
Assets
Connected
People
Connected
Fleet
Product Insights
Goods & Equipment
Supply Networks
Logistics Safety
Logistics Networks
Building Insights
Construction
Energy Grids
Market Insights
Rural Areas
Urban Areas
Work
Health & Sports
Homes
Connected
Infrastructure
Connected
Markets

SAP Leonardo Bridge - Enable E2E Smart Business Processes
Demo
SAP Leonardo Bridge
Connecting the World
Connected People
• End-Consumers
• Social Networks
Connected “Things”
• Products
• Moving Assets
• Fixed Assets
• Robots
• Drones
Connected Environment
• Weather
• Traffic
• News
• Maps
• Regulations
Connected Partners
• Customers
• Suppliers
• Logistics Service Providers
Live Business

SAP Leonardo IoT Foundation and Platform
- IOT Applications
- IOT Foundation & Platform
- IOT Edge

SAP Leonardo Technology Overview
SAP Leonardo Bridge
Connected
Products
Connected
Assets
Connected
Fleets
Connected
Markets
Connected
People
Connected
Infrastructure
Custom
Apps
Partner
Apps
Edge
Applications
SAP Leonardo IoT for
Edge Computing
Always Connected
Occasionally Connected
Dynamic Edge Applications
Distributed storage
Partner Edge Solutions
Business Suite
Systems/S4H (ERP,
WM, TM, CRM, etc.)
Legacy Systems
Public Apps and
Information
Non-SAP
SAP Leonardo IoT Foundation
SAP Cloud Platform / SAP HANA Platform
(incl. Data Management & Big Data Hub)
IoT Business Services
IoT Technical Services
Security Mobile
Machine Learning Analytics
Big Data Connector
Process
and Data
Integration

IOT Technical Services Enables
• Manage Millions of Sensors &
Devices
• Scalable Messaging
• Device Management
• Real time live Streaming Analytics
• Data Management & Big Data
connector
• User Management & Security
• Integration Service
IOT Business Services Enables
• Rapidly Build IOT apps
• Digital Twin
• Application Service Libraries
• Application Builder
• Apply Machine Learning
• Predictive Analytics &
Algorithms
IOT Applications
IOT Foundation &
Platform
IOT Edge
SAP Cloud Platform / SAP HANA Platform
(incl. Data Management & Big Data Hub)
IoT Business Services
IoT Technical Services
Security Mobile
Machine Learning
Analytics
Big Data Connector
Process
and Data
Integration

… and customers will soon select IoT MicroServices in the API Hub
Coming Soon
IOT Applications
IOT Foundation &
Platform
IOT Edge

SAP Leonardo IoT for Edge Computing
- IOT Applications
- IOT Core
- IOT Edge

SAP Leonardo IoT for Edge Computing
 Run Applications at Edge (local)
 Continuous Intelligence with Streaming Analytics
 Process live event streams
 Analyze data in motion
 Act in Real-time
 Works in limited connectivity areas
 Bi-directional Synchronization of SQL Anywhere
Edge with local storage at Edge
 Sensor & Device Agnostic
 Broad coverage - New or Legacy Protocols
 Best of Breed
 Vast Protocol Base (50+ on Roadmap
 Fast On-Boarding
Always Connected
Occasionally Connected/
Distributed Storage
Dynamic Edge
Applications
IoT Edge
(Cloud or Edge)
Edge Scenarios
IOT Gateway Cloud:
Agentless Operation
Cloud Processing
(HCP)
3
Machine
Commands
IOT Device (Agent)
IOT Applications
IOT Core
IOT Edge

Vertical IoT
apps/services
Horizontal IoT
apps/services
IoT platform
(Including IaaS)
IoT edge software
(incl. security and
local connectivity)
IoT professional
services
IoT communications
“Things”: devices,
sensors, machines,
gateways
including
Partnerships Overview

Go deeper into IoT with SAP
IOT Open Course – Learn SAP IOT
Get to know the Internet of Things
Prototype your first IoT application
Peer review
Winners will be announced
Open SAP Course

Internal & External Resources - 2016
1. Internet of Things Jam Site
2. Competitive & Market Intelligence for IoT
3. IoT Demos
4. IoT Customer Stories
5. IoT Launch Roadmap
6. IoT Sales Support
7. IoT Global Contacts
8. Predictive Maintenance and Service
9. IOT EBook
10.SAP HANA CLOUD Platform Free trials
11.IOT Value Maps
12.PdMS Free cloud trial (External)
13.IOT Learning (External)
14.IOT sap website(External)
15.Open IOT Source Course for partners &
Customers (External)
16.IOT Application Enablement – Offline Demo

Video Links
Hamburg Port Authority – https://www.youtube.com/watch?v=zKZDgsni0Y4
Trenitalia – https://www.youtube.com/watch?v=583aGe0xIGY
Roche – https://www.youtube.com/watch?v=5uBopSYtfIc
BMW – https://www.youtube.com/watch?v=cWo4lDa_1uw
EDF Energy – https://www.youtube.com/watch?v=uSQeVo-M0Yk
Alliander – https://www.youtube.com/watch?v=xrz1FlThdPo
Under Armour – https://www.youtube.com/watch?v=MGLtiQH7K5s
Kaesar Kompressor – https://www.youtube.com/watch?v=9oyInxA5vQ8
SAP, SEAT, SAMSUNG – https://www.youtube.com/watch?v=bB_i3zjzikk
Connected Farming – https://www.youtube.com/watch?v=vSjvw4toDmo

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Sap Leonardo IoT Overview

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