VUCA: Time for a Wake UpSimon CarpenterChief Customer Officer, SAP Africa

SAPHILA2014

VUCA: Time for a Wake UpSimon CarpenterChief Customer Officer, SAP Africa

SAPHILA2014

3

4

5

6

7

8

9

10

11

VolatilityUncertaintyComplexityAmbiguity

12

Why should you care?

VUCA

13

14

Volatility

Uncertainty

Complexity

Ambiguity

Social mediaand Mash-ups

ContinuousPartial Attention

Ecological &social diasporas

Population GrowthGenerations Y & Z

Adapted from Leaders Make the Future. Bob Johansen. Berret-Koehler Publishers Inc. San Francisco. 2012

DigitizationGlobalisation

Reflection

Some examples ofVUCA Conditions

17

18

Q3 2009: The Pinnacle of BlackBerryBlackBerry hits 20.7% global smartphone market share.Market Cap $47.8 billion• iPhone is at 17.1%• Android at 3.5%.

Q3 2012: Blackberry falls behindBlackBerry drops to 5.3% global smartphone market shareMarket Cap $3.8 billion• iPhone is at 13.9% (was at 23.8% a year earlier)• Android leads with 72.4%.

IDC’s 2014 Market Share ForecastMobile O/S Market Share %

Android 78.9

Apple 14.9

Microsoft 3.9

RIM 1

Others 1.3

19

20

Disruptive Innovation Competitive Advantage

21

22

USA• The Glass-Steagall Act, 1930s. 37 pages.• The Dodd-Frank Act, 2010. 848 pages + 30,000

pages of implementing rules.

UK• The Banking Act, 1979. 75 pages• The Financial Services Act, 2012. 534 pages.• Tolley’s guide to UK tax system, 1997. 5,000 pages.• Tolley’s latest edition 17,795 pages.

Founded in 1880Filed for bankruptcy in January2012. Leaves shareholders emptyhandedPeak employment > 145,000Today 13,000

Launched in October 2010Acquired by Facebook, April 2012for US$1 billion30 million user accounts16 Employees

1997 = US$ 30,000,000,000

2012 = US$ 145,000,000

Founded in 1887Acquired by Jeff Bezos, October2013 for US$ 250,000,000524,000 Circulation1,900 Employees

Founded in June 2009Acquired by Facebook, Feb 2014for US$19,000,000,000200,000,000 active users50 Employees

ReflectionWhich of thesefactors impactsyour business themost today…

in 2020?

Volatility Uncertainty Complexity Ambiguity

Too fastToo slowDynamicSpeedDeeper TroughsCatalystsConstant ChangeTurbulence

UnpredictableNon-linearSurprisePerturbations“Business unusual”Broken feedbackloopsNon-obvious causesDisruptions

MultiplexesM&AInterdependenceScaleGlobalisationCulture clashChaosWebs of Causality

Not sureMixed meaningsSignal lost in noiseHaziness – no senseBlurred boundariesDilemmas

Are you hearing any of this?

Reflection

How do you build aVUCA – capableorganisation?

Volatility Uncertainty Complexity Ambiguity

60 x 60 x 24 x 7 x 365Anyone | Anywhere | Anytime | Anything | Any form

Are you able to win?

Adapted from Leaders Make the Future. Bob Johansen. Berret-KoehlerPublishers Inc. San Francisco. 2012

Volatility

Uncertainty

Complexity

Ambiguity

Foresight. sensing the future

Insight.shaping your destiny

Fast Action.getting there early

Understanding

Vision

ClarityAgilityVUCA

What new capabilities must you build?

Vision, ValuesSpeedZero LatencyResponsivenessResilienceScenariosOptionsAgility

UnderstandForesightListenTrustReadinessSituational awarenessBig DataRapid Prototyping

SimplifyStandardiseRationaliseHarmoniseHolismMaster DifferentiatingComplexityCollaborative creationCrowd Sourcing

InsightSense-makingGenerative optionsScenario planningPattern recognitionData visualisationCollective IntelligenceDilemma flipping

VUCAVolatility Uncertainty Complexity AmbiguityVision Understanding Clarity Agility

How can SAP help you build VUCA ?

Vision, ValuesSpeedZero LatencyResponsivenessResilienceScenariosOptionsAgility

UnderstandForesightListenTrustReadinessSituational awarenessBig DataRapid Prototyping

SimplifyStandardiseRationaliseHarmoniseHolismMaster DifferentiatingComplexityCollaborative creationCrowd Sourcing

ClarityInsightSense-makingGenerative optionsPattern recognitionData visualisationCollective IntelligenceDilemma flipping

Vision Understanding Clarity Agility

Speed SimplicityDepth PredictionFlexibility

Complexity built over decades limits ability to innovate

40% executives worry that their organizationswill not keep pace with technology change andlose their competitive edge. – McKinsey study, 2013 ”“

Drive businessinnovation

Keep thelights on

28%

72%

Forrester IT Survey, 2013

Drive businessinnovation

Keep thelights on

IT EnvironmentCollapse redundant infrastructurelayers

User ExperienceEngage front line employees /customers

28%

72%ConsumptionFor immediate business impact

Forrester IT Survey, 2013

Drive businessinnovation

Keep thelights on

Radical Simplification is needed to unlock the potential.

D&FLA Team WDF 2013

D&FLA Team WDF 2013

IMPACT ON BUSINESS Slow Response Times | Usability Challenges | Lack Of Adaptability

IMPACT ON IT High Latency | Complexity | High Cost of Solutions

TransactionalDatastore

DataWarehouse

SensorsData

MobileData

Archives Social & Text Geo-Spatial

LocationIntelligence

OrderProcessing

OperationalReporting

RT Risk& Fraud

TrendAnalysis

SentimentAnalytics

PredictiveAnalytics

PatternRecognition

Analyze

ETLStaging

Collect

Clean-DataQuality

Transact

AggregateSummarize

CommunicateMonitorPredictPlanning

0

1

Information Processing is at a critical inflection pointPoint optimization: not simple, not real-time business

© 2013 SAP AG. All rights reserved. 37

One atomic copy of data forTransactions + Analysis, All in Memory

Eliminate unnecessary complexity and latencyLess / no hardware to manageAccelerate through innovation and simplification

Multiple copies of data in different data modelsInherent data latencyPoor innovation leading to wastage

Separated Data Mng’t + Transactions +Analysis + Acceleration processes

SAP HANA(DRAM)

Transact

ETL

Analyze

ETL

Re-think Data Management for Real-time BusinessOpportunity to radically change the way Business Computing happens

A Common Database Approach for OLTPand OLAP Using an In-Memory ColumnarDatabaseHasso Plattner

VSAccelerate

Cache

© 2013 SAP AG. All rights reserved. 38

Supportany

DeviceAny AppsAny App ServerAny AppsAny App Server

SAP Business Suiteand BW ABAP App ServerSAP Business Suiteand BW ABAP App Server

JSONROpen

ConnectivityMDXSQL

Other AppsLocationsReal-timeHADOOPMachineUnstructuredTransaction

SAP HANA PlatformSQL, SQLScript, JavaScriptSQL, SQLScript, JavaScript

Integration ServicesIntegration Services

SpatialSpatial

Business FunctionLibrary

Business FunctionLibrary

SearchSearch Text MiningText Mining

PredictiveAnalysis Library

PredictiveAnalysis Library

DatabaseServicesDatabaseServices

Stored Procedure& Data Models

Stored Procedure& Data Models

Planning EnginePlanning Engine Rules EngineRules Engine

Application & UIServices

Application & UIServices

SAP HANA Platform – More than just a fast database

SAP HANA Platform Converges Database, Data Processing and Application PlatformCapabilities + Libraries for Predictive, Planning, Text, Spatial & Business Analytics

Enables business to operate in real-time.

© 2013 SAP AG. All rights reserved. 39

Towards Real Time Finance Processes

Process statusanalytics

Transactionmonitoring

Control &risk analytics

Real timeprocess oversight

Personalanalytics

Elimination ofbatch execution

Real-timereporting

Intra-periodsimulations

Continuous intra-period execution

Acceleration ofbottleneck steps

Instantinsight to

action

Real timeprocessexecution

Real TimeProcess

© 2013 SAP AG. All rights reserved. 40

“>60% of CEOs expect 15-50% of their earningsgrowth in the next 5 yearsto come from technology-enabled businessinnovations.”McKinsey study, 2013

– McKinsey study, 2013

Reflection

The Cloud can set you free

To Innovate

© 2013 SAP AG. All rights reserved. 42

Cloud; the agility & innovation your business needs

• Rapid processconfiguration

• Faster adoption• No lengthy

upgrade cycles• Packaged

integration

Agile deployment,configuration and

integration

• Full deploymentin weeks

• Mobile grade userexperience = lesstraining

Faster deployment

• Multipleinnovationreleases per year

• Customerfeedback acornerstone ofupdates

More frequentinnovation updates

Lower TCO & fasterTime to Value

• Lower initialsolution anddeployment fees

• No maintenanceor upgrade costs

• Prepackagedintegrations

How can SAP help you to buildVUCA ?

User Experience CloudApplications Analytics

In-Memory Computing: Speed, Simplicity, Scale, Big Data,

Industry & LoBValue Maps

Co-Innovation &Design Thinking

Community:SAP Ecosystem

Speed &Quality

OPERATE BETTER COLLABORATE BETTER DECIDE BETTER ADAPT BETTER

Time for a “WAKE UP”

45

How do you get started?

From push to pull: Design Thinking

Business( Viability )

People(Desirability)

Technology(Feasibility)

DesignThinking

ExperienceInnovationEmotional

Innovation

FunctionalInnovation

ProcessInnovation

A suggested reading list

48Will waves of VUCA consume you?

49

Or will you surf them to VUCA enabledsuccess?

SAPHILA2014

Thank you for listening

Time for a Wake UpSimon CarpenterChief Customer Officer, SAP Africa.

Thank you forverymuch

listeningto me

AfricaCIO Summit2014