building a business case for innovation: project considerations for cloud, mobile, big data, and...
TRANSCRIPT
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
Digital Transformation
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 McDermottSAP 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.
Innovation Adoption
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 ForcesThe 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
Wrap-Up and Q&A
Thank You!
Fred Isbell
Senior Director,
SAP Service & Support Marketing
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
SimplerSimpler IT using a cloud-based deployment model, reducing total cost of ownership
FasterFast deployments across all lines of business, including HR, finance, sales and distribution, materials management, and project management
UnifiedCentralization of decision making and management information in a single system
EfficientSimpler 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
OrganizationLa Trobe University
LocationMelbourne, Australia
IndustryHigher education andresearch
Products and ServicesUndergraduate 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 7xFaster business processes
4People now running payroll, down
from 12–15
100%Cloud-based environment within 1
year
33344 (14/09) This content is approved by the customer and may not be altered under any circumstances.
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 Lumia4,500+ Phones
27,500+ iPads
37,500+ iPhones
100+ Watches
50,000+ employees equipped
with internal apps
6,500+BYOD users
67Fiori 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 OrganizationConAgra Foods
Headquarters or LocationOmaha, Nebraska
IndustryConsumer Products
Company Revenue13B 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 daysReduction to month-end forecasting cycle
33344 (14/09) This content is approved by the customer and may not be altered under any circumstances.
Beiersdorf Employee & Customer
Engagement with SAP Innovation Management
CompanyBeiersdorf Shared Services GmbH
HeadquartersHamburg, Germany
IndustryProfessional services –professional accounting and IT services
Products and ServicesAccounting 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
3xThe idea submissions within 2 months
SimplerUser interface, allowing the introduction of a quick-start program
AcceleratedSubmission of ideas per 100 users, from 1 submission every 6 months to over 4 per month within 2 months of using the new solution
33344 (14/09) This content is approved by the customer and may not be altered under any circumstances.
“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