setting your enterprise mobility strategy & vision

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Setting Your Enterprise Mobility Strategy

and Vision


The information in this presentation is confidential and proprietary to SAP and may not be disclosed without

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Today’s Presenter

Kate Delimitros

Principal, Value Engineering – Strategic Industries,

SAP


Contents

Value Management Introduction

Mobile Trends and Challenges

Setting an Enterprise Vision for Mobility

Case Studies and Documented Benefits


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


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


Contents






Among the Top Trends in Enterprise Technology, Mobility

Reigns Paramount in Focus and Concern

Source: SAP White Paper – Driving Maximum Value from Technology 2011


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


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


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


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


Contents



Setting an Enterprise Mobility Vision



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


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


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


Contents



Setting an Enterprise Mobility Vision

• KPIs and Benchmarking

• Use Case Identification

• Value-based Roadmap



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


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


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


Our Findings…..


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


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%


Mobility Discovery Conversations with the Business

and IT will Drive Use Case Identification


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


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


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


Contents






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


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

http://en.wikipedia.org/wiki/File:Delta_logo.svg


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

Thank You!

Contact information:

Kate Delimitros

SAP Value Engineering

[email protected]

Closing and Q&A

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