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Setting Your Enterprise Mobility Strategy
and Vision
© 2012 SAP AG. All rights reserved. 4
The information in this presentation is confidential and proprietary to SAP and may not be disclosed without
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Legal Disclaimer
© 2012 SAP AG. All rights reserved. 5
Today’s Presenter
Kate Delimitros
Principal, Value Engineering – Strategic Industries,
SAP
© 2012 SAP AG. All rights reserved. 6
Contents
Value Management Introduction
Mobile Trends and Challenges
Setting an Enterprise Vision for Mobility
Case Studies and Documented Benefits
© 2012 SAP AG. All rights reserved. 7
Strategy Enablement
Measurable Benefit
Risk & Compliance
Innovation
Business Value
Business Value Includes Quantified Financial Benefits as
well as Non-quantifiable Benefits
€ £ ¥ $
Non-quantifiable benefits tend to be those where the cost of doing nothing is too
great to ignore
© 2012 SAP AG. All rights reserved. 8
The Discovery Process Supports the Business Case for a
Value-Based Roadmap
Value Discovery
“Build the Case”
Establish current baseline and potential opportunity
(Benchmarking)
Identify Sources of Value and Key Performance
Indicators and (Use Cases)
Prioritize Initiatives (Roadmap)
Build the business case (Quantitative and/or
Qualitative)
Value
Lifecycle
© 2012 SAP AG. All rights reserved. 9
Contents
Value Management Introduction
Mobile Trends and Challenges
Setting an Enterprise Vision for Mobility
Case Studies and Documented Benefits
© 2012 SAP AG. All rights reserved. 10
Among the Top Trends in Enterprise Technology, Mobility
Reigns Paramount in Focus and Concern
Source: SAP White Paper – Driving Maximum Value from Technology 2011
© 2012 SAP AG. All rights reserved. 11
Mobility 1.0
Basic Connectivity
Mobility 2.0
Expanded Connectivity
Mobility 3.0
Wireless Internet
Mobility 4.0
Unwired Enterprise
Voice
Transactional
Voice
Multimedia Messaging
Voice
Multimedia Messaging
Web Navigation Web Navigation
Community
E-commerce
Enterprise Applications
Interactive
Cap
ab
ilit
y
Community
Voice
Text Messaging
Enterprise
E-commerce
In the Past Few Years, We’ve Seen Enterprise Mobile
Adoption Shift Drastically
Once Relied Upon for Communication and Increasingly for Transactions, Mobility has come to Run the Enterprise
© 2012 SAP AG. All rights reserved. 12
Three Key Trends Add Complexity
Devices Expand
5B mobile phone subscribers in the world
5-6 Mobile Operating Systems
75% of companies have BYOD policies1
Decision Points Expand
43% annual growth in corporate
apps accessed from smart phones5
Total volume of mobile device
shipments supporting enterprise
mobility apps is expected to be 25
million units by 20136
Data Expands
Data doubles every 18 months2
750 Million Facebook
members3
200 Million Twitter users4
1 Aberdeen Research, 2011 2. Yankee Group, 2008, 3.. U.S.A. Today, July 2011
4. BBC, March 2011. 5. J. Gold Associates, Nov. 2008 6. VDC Research, 2011
© 2012 SAP AG. All rights reserved. 13
Managing the Newly Unwired Environment will Pose
Challenges
By 2013, a typical Fortune 1000 corporation delivering B2E and B2C
applications will use at least six different combinations of
mobile platform, architecture and development tools”*
By 2014, 60% of Fortune 1000 corporations will have failed to put a
comprehensive mobile strategy in place, leading to considerable
overspending”*
“
”
“
”
Gartner 2010
© 2012 SAP AG. All rights reserved. 14
The Keys to Enterprise Mobility Success Lie in Upfront
Planning and Bringing a Framework and Approach
2
3
Top performers invest time up-front in identifying the use
cases for mobility, and segmenting the targeted users 1
Top performers invest time in developing a mobility roadmap
Top performers invest in a platform approach from the
outset, enabling them to address growing enterprise mobility
needs in a cost-effective manner
© 2012 SAP AG. All rights reserved. 15
Contents
Value Management Introduction
Mobile Trends and Challenges
Setting an Enterprise Mobility Vision
Case Studies and Documented Benefits
© 2012 SAP AG. All rights reserved. 16
Any Business Can be Broken into Four Key Meta-
Processes Aligned with the Income Statement
Income Statement Meta-Process
Revenue / Sales
Costs
Cost of Sales/ Cost of Goods Sold (COGS) Fulfill Demand
Research and Development Develop Products and Processes
Sales and Marketing Generate Demand
General and Administrative Plan and Manage the Enterprise
Operating Profit
© 2012 SAP AG. All rights reserved. 17
These Meta-processes Drive the Organization of Business
Process Areas
Generate Demand
Fulfill Demand
Develop Products and Processes Plan and Manage Enterprise
Marketing Sales
Procurement Manufacturing /
Operations
Supply Chain
Planning
Supply Chain
Execution
Research & Development
HR IT
Strategy / Governance
Relationships / Risk
Corporate Asset
Management
Finance
Service
© 2012 SAP AG. All rights reserved. 18
Mobility Accelerates Business through On-Device Access
to Information and Collaboration
End Consumer
Distributor
Suppliers
Retailer
Plant operations
manages work orders,
inventory, and assets
Marketing executes
campaigns and promotions to
reach mobile consumers
Managers approve
travel, time, vacation,
expenses
Field Sales
manage customers,
revenue, and
territories
Web Channel
Field Service fix
equipment, manage
parts, and customer
relationships
Retailers place orders, scan
inventory, and request service
Business leaders monitor
performance and changes
Consumers receive mobile
offers and communications
Consumers conduct mobile
commerce and payments
Warehouse staff receive
raw goods and transfer
materials to manufacturing
IT staff manages
mobile devices
Knowledge Workers
communicate and
collaborate
© 2012 SAP AG. All rights reserved. 19
Contents
Value Management Introduction
Mobile Trends and Challenges
Setting an Enterprise Mobility Vision
• KPIs and Benchmarking
• Use Case Identification
• Value-based Roadmap
Case Studies and Documented Benefits
© 2012 SAP AG. All rights reserved. 20
Sources of Value can be Measured in Key Performance
Indicators (KPIs)
Performance
Drivers
Key Performance
Indicators
Performance
Analysis
Framework
Financial / Effectiveness
• Sales
• Inventory
• AR Write-Offs
• Cost of Goods / Direct Spend
Technology
• System Landscape
• Use of e-Auctions and Supplier Portal
Best Practice Adoption
• Importance of Best Practices
• Current Coverage of Best Practices
• Importance and Coverage Gap
Efficiency
• Headcount (FTEs) per Billion of Revenue
• Cost of Running Business Process as % of Revenue
• Measurement of Time Required to Perform a Process
(Close Books, Cycle Time, etc.)
Organization
• Use of Shared Services
• Use of Outsourcing
• Level of Centralization
© 2012 SAP AG. All rights reserved. 21
Mobile Adoption and IT Metrics Should be Benchmarked
Alongside Business Process Performance Metrics
Human Capital Management
Talent Management
Financial Excellence
NPDI
Customer Contact Centers
Sales Effectiveness
Finance
Financial Compliance
Order to Cash
Enterprise Health Check
Trade Promotion Management
Best People and Talent
Product and Service Leadership
Total Cost of Ownership (TCO)
Business Intelligence/ Analytics
Value Management
Strategic IT
Supply Chain Planning
Transportation Management
Warehouse Management
SRM/ Procurement
Manufacturing
Enterprise Asset Management
EH&S Compliance
Operational Excellence
Responsive Supply Networks
High Performing Assets
Superior Customer Value
End-To-End Processes
= Best Practice Surveys
HR Shared Services
Financial Performance and Risk Management
Cash to Cash
Finance Shared Services
Enterprise Architecture
Best Run IT
Enterprise Information Management
Implementation Services
Note: Available Surveys subject to change
Mobile
Merchandising
= KPI Surveys
© 2012 SAP AG. All rights reserved. 22
Mobility Metrics Company
Value
Peer Group
Averag
e
Top
25%
Percentage of Mobile Employees (in %) 30.00 38.38 55.00
Number of Mobile Devices per Employee 1.01 0.68 1.05
Number of Smart Phones/Tablets per Employee 0.20 0.26 0.40
Average Number of Mobile Operating Systems 3 3 2
Mobile Devices Managed Centrally by IT (in %) 100 89 100
IT Spend as % of Revenue 0.50 1.30 0.50
Total Mobility-Related FTEs per Billion Revenue 1.50 8.18 1.69
Mobility Spend as % of Revenue (in %) 0.20 0.16 0.04
Average Cost of New App (in currency) 10000.00 88374.1 2382.00
Time to Provision/Decommission New Device(in min) 60 405 20
Time to Develop Deploy New App (in days) 2 58 25
Benchmarking Provides KPI Insight Establishes KPI Baselines and Provides Insight Into Potential Benefits
• Establishes process
baselines
• Enables comparisons
to peer group(s)
• Enables evaluation of
magnitude of
potential opportunity
(e.g. by moving
toward average or
quartile one)
Performance Results –Metrics
© 2012 SAP AG. All rights reserved. 23
Our Findings…..
© 2012 SAP AG. All rights reserved. 24
Top Performing Companies Have Gone a Long Way in
Mobilizing their Business, and are Seeing the Rewards
Average % users mobile access to
enterprise processes/applications
Companies Having Higher % of Users with Mobile Access
to Enterprise Processes/Applications Experience Higher
Revenue Growth
2.2%
10.9%
20.0%
-25.6%
-5.7%
7.9%
Bottom 25% Average Top 25%
Percent of Users with Mobile Access to Enterprise Processes/ Applications
Average Revenue Growth (in %)
Source: SAP 2011 Enterprise Mobility survey. all industries
© 2012 SAP AG. All rights reserved. 25
Mobility Has a Direct Impact on Process Performance and
KPI Achievement
Asset Management: Organizations where majority of maintenance work orders are generated from the preventive and predictive
maintenance inspections have on average over 40% higher Return on Assets
Return on Assets (KPI) vs. Mobile Maturity
Low Maturity:
• 100% Re-active maintenance
High Maturity:
• Field workforce receives maintenance schedules and
updates immediately on mobile devices
Sales: Organizations that enable comprehensive customer view have on average 9% higher Sales Achievement as a Percentage of
Target
Sales achievement as % of target (KPI) vs. Mobile Maturity
Low Maturity:
• Customer and product information are
delivered via legacy systems and
standard delivery channels (back end
systems, paper brochures)
High Maturity:
• Mobilized sales processes increase sales force
effectiveness and customer retention
• Provision of online customer and product data to sales
via mobile devices
Low High
11.1 15.7
Low High
86.7 94.9
+ 40%
+ 9%
Warehouse Management: Organizations that have real time status and tracking of warehouse activities have on average 29.6%
higher Inventory Turns per Year
Inventory Turns per Year (KPI) vs. Mobile Maturity
Low Maturity:
• No real time view of warehouse
management status and key metrics
High Maturity:
• Warehouse status and key metrics are available real
time
• Status and key metrics can be accessed via mobile
device
Low High
6.5 8.4 + 29.6%
© 2012 SAP AG. All rights reserved. 26
Mobility Discovery Conversations with the Business
and IT will Drive Use Case Identification
© 2012 SAP AG. All rights reserved. 27
Prioritization Example: Use Cases for a Retailer
Mobile Store Operations
Business Process Apps
Mobile BI / Executive Dashboards
Mobile Inventory Management
Warehouse and Distribution
Opportunity
Opportunity
Low
High
Economic
Value
Low High
Mobile Application Framework
Strategic Importance
Mobile Workforce Management
Mobile Training of Associates
Mobile Gift Registry
Supplier Collaboration
Mobile Ordering
Opportunity
Opportunity
© 2012 SAP AG. All rights reserved. 28
Prioritization and Value Identification Will Drive a
Roadmap
Device and Content Management, and Device Security
Mobilizing the Back End by Leveraging the Unwired Platform
Untethering the Enterprise through Advanced Applications
Incident Management
Maintenance Request Asset Tagging and Untagging
In-Transit Asset Tracking
Asset Visualizer
Safety Audit
MRO Procurement
Equipment Fact Sheet Shift Reporting
Compliance and Regulatory Insight
Maintenance Work Order
Planning
Realizable Incremental Annual Benefits:
TBD TBD
Afaria
SUP –
mobilizing
the backend
SUP –
use-case
application
development
: TBD
Mobile Time Card
Financial Analytics
Maintenance Work Execution
Application & Device Mgmt SDK SAAS-based management Base Afaria platform enabling:
Enterprise-class mgmt for
iPhone and Android for provisioning,
deploying, and decommissioning
• User self-service management
• Uniform policies
Field data capture
2012 2013 2014
© 2012 SAP AG. All rights reserved. 29
Summary of Value-Based Approach
What are the top
mobile use cases? 2
What is the business
case and mobile
roadmap? 3
Device and Content Management, and Device Security
Mobilizing the Back End by Leveraging the Unwired Platform
Untethering the Enterprise through Advanced Applications
Incident Management
Maintenance RequestAsset Tagging and Untagging
In-Transit Asset Tracking
Asset Visualizer
Safety Audis
($1.0-$1.7M)
MRO Procurement
Equipment Fact SheetShift Reporting
Compliance and Regulatory Insight
Maintenance Work Order
Planning
Realizable Incremental Annual Benefits:TBD : $TBD
Afaria
SUP –
mobilizing the backend
SUP –
use-case application
development
: TBD
Mobile Time Card
Financial Analytics
Maintenance Work Execution
Application & Device Mgmt SDK SAAS-based managementBase Afaria platform enabling:
Enterprise-class mgmt for
iPhone and Android for provisioning,
deploying, and decommissioning
• User self-service management• Uniform policies
Field data capture
2011 2012 2013
What is the current
state baseline and
where is the greatest
value?
1
Low
High
Economic
Value
Lo
w
High
Mobile Application Framework
(leveraging SUP-Afaria)
Strategic Importance
© 2012 SAP AG. All rights reserved. 30
Contents
Value Management Introduction
Mobile Trends and Challenges
Setting an Enterprise Vision for Mobility
Case Studies and Documented Benefits
© 2012 SAP AG. All rights reserved. 31
Examples of Mobility-Driven Benefits by Process Area
Process Baseline Value Driver or KPI Improvement References
Sales Revenue (if sales rep constrained)
Sales Rep Staff Cost (if market constrained)
5 – 10 %
(on one driver)
• Customer Interviews: 5 %
• Plzensky Prazdroj BTS: 10 %
• Dr. Reddy’s Laboratories BTS: 6 – 8
%
• Customer Business Case: 5 – 10 %
• SAP Internal BTS: 5%
Field Service Field Service Staff Cost 5 – 10 % • Barloworld Handling BTS: 10 %
• Customer Business Case 5 – 10 %
• Customer Business Case: 6 – 12 %
Procurement Procurement Staff Cost
(includes proxy for efficiency gains elsewhere)
1 % Customer Interviews
Manufacturing Manufacturing Cost
(mobile Visual Performance Mgmt for
Supervisors)
0.5 – 1 % Customer Interviews
Maintenance Maintenance Staff Cost 5 – 10 % Barloworld Handling BTS: 10 %
Supply Chain
Planning
Inventory
(better visibility in supply chain, esp. for Sales)
1 – 2 days Customer Interviews
Warehouse Mgmt Warehouse Staff Cost 5 – 10 % Extrapolation
Transportation Transportation Expense 1 – 2% Customer Business Case: 1 – 2 %
Order to Cash Days Sales Outstanding
(immediate Proof of Delivery)
1 – 2 days
(can be more)
Customer Interviews: 1 – 2 days
Customer Data Point: 10 days
HCM Total Mobilized Staff Cost (workflow, self-service
travel and expenses, etc.)
0.5 – 2 % Estimate
Project Mgmt Project Staff Cost 1 – 3 % Estimate
© 2012 SAP AG. All rights reserved. 32
Cox Communications saves approximately $500,000 per year by reducing
downtime and IT man hours required to manage remote devices
BNSF Railway Company saves $7,500 per day on data entry labor costs with a
mobile work order management system
Delta Air Lines is saving each of their field engineers 30-60 minutes each day with a
mobility solution powered by Sybase
Pepsi Bottling Group saves $7 million per year using wireless field service
application
Otis Elevator enjoys a more than 200% ROI, a decrease in non-productive travel
time and an improvement in field efficiency
Tennant improves field service technician productivity, increases first time fixed
rate, and reduces billing cycles from 10-12 days to 1-2 days
Examples of Mobility-Driven Benefits
© 2012 SAP AG. All rights reserved. 33
Qualitative Benefits will also Result
Unwired Enterprise Advantages
Innovation
Deploy state-of-the-art, market leading mobile enterprise applications
Leverage Mobility/RFID to simplify business processes and automate activities
Teamwork
Improve team cooperation by mobilizing collaboration tools and key workflows
Visibility
Provide real-time traceability and improve control of time and attendance of field
workers with mobile devices
Compliance
Ensure compliance with corporate security guidelines with proactive
management of any mobile device type throughout its lifecycle (from commission
to retirement)
Productivity
Improve employee productivity with ease, real-time access to enterprise
applications on mobile devices
Safety
Protect sensitive enterprise data on mobile devices
Enable workers to capture initial information pertaining to incidents, near misses,
from anywhere at any time
Strategy
Enablement
Measurable
Benefits
Risk &
Compliance
Innovation
Closing and Q&A
Participate in today’s TweetChat about mobile strategy
#MobileInsights
SAP Mobile Insights Webcast Series
http://bit.ly/z2znLX
Mobile Sense Thought Leadership Series (webcasts & white papers):
http://fm.sap.com/mobilesense