Published on February 20, 2014
SAP: The Cloud Built for Business ARIBA LIVE Rob Glickman | VP Cloud Marketing | SAP
Unprecedented Pace of Change 5B middle class growing to 5 billion will strain resources 15B web-enabled devices are creating an intelligent, connected universe © 2013 SAP AG or an SAP affiliate company. All rights reserved. Millennials 1B people in social network will rewire business and personal boundaries will transform customer demands and the workplace New + Disruptive business models will accelerate change and innovation Data Doubling every 18 months create opportunities and risks for value creation 75% New enterprise IT spend will be cloud-based or hybrid by 2016 2
Since the year 2000, 52% of Fortune 500 is gone 75% of all IT purchases cloud LoB 2016 The market for public cloud services will top $107 billion by 2017 5B middle class growing to 5 billion will strain resources …And 60% of that $107 billion on SaaS 1B Millennials will transform 10-fold explosion of new cloud (SaaS) "apps” in next four years. Driven by a tripling of "developers"/contributors. customer demands and people in social network 7 million new cloud will rewire business and personal Over the next seven boundaries the workplace New + years, emerging markets cloud spending will Disruptive grow 7x, vs. 3x in developed markets. jobs by 2015 business models 15B web-enabled devices are creating an intelligent, connected universe © 2013 SAP AG or an SAP affiliate company. All rights reserved. Growth engines comingwill accelerate change from emerging markets like Brazil, China, India who have social running through their veins and innovation Data Doubling 75% Changing the way consumers interact, and their demands are changing the way companies deliver services and the operating models that support them. every 18 months create opportunities and risks for value creation New enterprise IT spend will be cloud-based or hybrid by 2016 The line between consumer and enterprise blurs more everyday… 3
MORE BUSINESSES TAPPING INTO THE CLOUD… 75%+ New IT expenditures will be for Cloud or hybrid systems by 2016 70%+ CIOs will embrace a “cloud first” strategy by 2016 80% Of new IT decisions will involve LoB execs; 53% of IT decisions will be led by LoB execs Sources: Saugatuck, IDC
…Is Creating Pressures Across All Functions and Industries… Increased pressure on decision makers across the enterprise Sales & Marketing Procurement & Operations Time to market Cost & Complexity • On-boarding new customers • Lack of visibility into customer base • New non-traditional competitors • Erosion of margins • High levels of IT spend; complex system landscapes • Pressure on internal costs to serve and operate Service Finance Demanding Clients Risk & Regulation • High collaboration and social requirements • Pressure for greater returns on cash and investments • Capital holding requirements • Regulatory rules & auditing requirements • Increasing liquidity and cash return requirements HR Changing Workforce © IT Changing Workforce • Aging workforce experienced but out of touch with new tech requirements • Tech-savvy Millennials work differently • Increased use of contingent workers 2013 SAP AG. All rights reserved. • Complex systems landscapes • New technology adoption, management • Integration and cost efficiency challenges 5
Customer-Centricity Is a Key Part of Our Cloud DNA We achieve a deeper level of customer intimacy with more coordinated engagement throughout the customer lifecycle Direct engagement with business executive audiences Usage data and community feedback – frequent innovation in rapid release cycles Focus on usage, successful references, renewals Land and expand approach Frequent user and app upsells Focus on customer satisfaction, adoption, and time to implement CUSTOMER High trust in daily transaction volumes, secure data Seamless innovation releases Source: Bain & Co. 2013 and SAP analysis © 2013 SAP AG or an SAP affiliate company. All rights reserved. 6
Customers Seek Outcomes Not Products Influence buying behavior Deliver a 360 view of the customer Improve overall engagement Grow lifetime value Increase operational efficiency Enable employees to develop themselves Align people with goals and objectives Increase customer satisfaction Reduce COGS Accelerate time to productivity Deliver 360° view of spend and vendor relationships Discover new business opportunities © 2013 SAP AG or an SAP affiliate company. All rights reserved. 77
T-Mobile clip: https://www.sap.com/asset/detail.t-mobile-ctv-customercloud-for-social-mp4.html © 2013 SAP AG or an SAP affiliate company. All rights reserved.
Cloud delivers the agility and innovation your business needs Faster deployment • • Full deployment in weeks Mobile grade user experience = less training More frequent innovation updates • • Multiple innovation releases per year Customer feedback a cornerstone of updates Agile deployment, configur ation and integration • • • • © 2013 SAP AG or an SAP affiliate company. All rights reserved. Rapid process configuration Faster adoption No lengthy upgrade cycles Packaged integration Lower CapEx & faster Time to Value • • • Lower initial solution and deployment fees No maintenance or upgrade costs Prepackaged integrations 9
Cloud: Enabling New Business Processes and Insights Mine social media activity for instant insights to turn customer interest into sales Empower your workforce with improved training and regulatory compliance © 2013 SAP AG or an SAP affiliate company. All rights reserved. Improve liquidity and reduce risk with more dynamic and flexible finance and payments Extend your purchasing systems with a global network of connected buyers and sellers Create your own process extensions and new applications with an agile cloud platform 10
Employee Central – Core HR in the Cloud © 2013 SAP AG or an SAP affiliate company. All rights reserved. Employee Central 11
SAP Jam: Social collaboration across your entire network Supporting company-wide or cross-departmental social processes Operations Finance Service Shipment updates Pricing exceptions HR Engage every employee R&D Catch customer satisfaction problems early Collaborate with experts anywhere Marketing PR Improve campaign planning Quickly determine best response Specialist Sales IT Improve deal teams and strategy Drive projects and issue resolution Any Employee © 2013 SAP AG or an SAP affiliate company. All rights reserved. 12
SAP Cloud for Travel and Expense A People-Centric End-to-End Solution Service – Partner Budgeting for managers Travel Plan / Itinerary Management Plan the trip Credit Cards Reimbursement Trip approval Mobile GPS / Maps Approval Book the trip Travel Email Audit © 2013 SAP AG or an SAP affiliate company. All rights reserved. Operational Data Analytics On Trip Expense Report BW Integration e-Receipts / OCR 13
Sun Communities Employees: 1,650 | Industry: Services | Solution: Employee Central, Learning, Performance & Goals, Recruiting, SAP Jam, Succession EXECUTION GAP SOLUTION RESULTS • Implemented SuccessFactors Employee Central, Performance & Goals, Succession & Development, Recruiting, Learning and SAP Jam • HR was spending its time on data management rather than talent management “ • Allowed employees to stay productive on the go through a mobile app • Eliminated the burden of maintaining and integrating HR systems • Niche HR systems required too much work to integrate and couldn’t scale to the company’s growth • Made the employee experience seamless from recruitment through career development • Received quarterly product updates automatically, without extra effort • Recruiting and onboarding revolved around paper job applications and manual data entry • Increased social collaboration across the workforce • Helped HR identify and develop highpotential talent Employee Central is by far our most flexible HR tool. Whether we’re effective-dating changes, manipulating that data and moving it into a payroll system, or doing complex calculations, it’s the number-one resource for our team. ” Marc Farrugia, Director of Human Resources © 2013 SAP AG or an SAP affiliate company. All rights reserved. 14
Kawasaki Motors Employees: 500 | Industry: Manufacturing | Solution: Compensation, iContent, Learning, Performance & Goals, Succession EXECUTION GAP SOLUTION • Company had no reliable way to RESULTS • Success Factors’ Performance & establish and communicate goals – rating scales, completion rates, and results differed greatly from one department to the next Goals, Compensation, Succession & Development and Learning • Transform performance reviews into an electronic process • No accurate measurement of talent management activities. “ performance review, goal setting, and compensation planning processes • Easily identify areas for organizational improvement • Consistency and discipline in all our employees’ performance to determine career development needs • Monitoring progress at all stages of the • Freed up the equivalent of two full-time employees by moving the performance review process online When our president calls with a question about an employee s performance reviews or competencies, I don’t have to call him back with the answer. SuccessFactors serves up the information I need within seconds. © 2013 SAP AG or an SAP affiliate company. All rights reserved. ” Tom Porter, Director Human Resources & Administration 15
UST Global: Saving millions on travel expense with the SAP Cloud for Travel and Expense solution © 2013 SAP AG or an SAP affiliate company. All rights reserved. 16
SAP Cloud Strategy Best-of-Breed Cloud Suite • • • • All Lines of Business • On-Premise-to-Cloud #1 in HCM, Procurement, Business Networks, Social • Cloud-to-Cloud Collaboration • Third-Party-to-Cloud Advanced Cloud Social Sales, Marketing, and Service End-to-end Cloud ERP Suites (ByD and BusinessOne) Delivered by SAP, a Trusted, Experience d Business Partner Flexible, Secure Deployment • • • • Transformational Integration Public, Private and Managed Service Offerings International security standards - SAS-70 Type II, ISO 27001, SSAE, PCI, and more. Physical security Global datacenters © 2013 SAP AG or an SAP affiliate company. All rights reserved. Unified Cloud Platform SAP HANA Cloud platform will serve as the foundation for the full portfolio of Cloud solutions from SAP 17
SAP Accelerating in the Cloud While others have been talking about the cloud, SAP has quietly transformed itself into a force to be reckoned with: 35M 30+ 12M 1.4M 2M+ Largest business Cloud deployments Industry’s largest base of Cloud users Industry’s most comprehensive Cloud portfolio The leading social business platform The largest and most global business network More business professionals use Cloud solutions from SAP than from any other vendor on the planet. Market-leading public apps (#1 in HCM, Procurement, B usiness Networks and Social Collaboration) covering all lines of business More users than Chatter, Yammer, etc. Over 1.4 million connected companies in 190 countries transacting over half a trillion in commerce annually - the size of any other business network… © 2013 SAP AG or an SAP affiliate company. All rights reserved. Some with more than 2 million users. Public, private and managed service offerings €1B+ Annualized run rate in Cloud business SAP is now the largest cloud provider at-scale with over 130% YoY subscription revenue growth 18
SAP Cloud Strategy on one slide 75% of all IT spend = Cloud or hybrid by 2016 TCO 75% Innovation & Agility Battle for Cloud will be won within 3 years 60% Cloud spending = Saas 2017 NEW ENGAGEMENT MODELS Social Network HR Proc Suite HANA LOB Apps = 80% IT Purchases Growing ≥ 2x Overall Market Cloud AppsCust Mktg HR Fin Fin Managed Managed Cloud Services Services Bush, Networks HANA Cloud Platform © 2013 SAP AG or an SAP affiliate company. All rights reserved. 19
Welcome to the cloud built for business © 2013 SAP AG or an SAP affiliate company. All rights reserved. 20
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