The document discusses how companies must reimagine their business, products, processes and work to succeed in the digital age. It highlights how the average lifespan of companies has decreased and over half of Fortune 500 companies from 2000 are now gone. To win digitally, companies must create a digital business framework, reimagine customer engagement, and establish a digital core through technologies like machine learning and an intelligent system. The digital transformation journey requires companies to start at SAP's website for more information and resources.
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Average age of a company on the S&P 500
60 years 12 years
Out Innovated
1960 1970 1980 1990 2000 2010 2020
52% of the
Fortune 500
firms since
2000 are
gone
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Extreme Variability Rapid InnovationIndividualization
Challenges from the market today
4. So what does it take to
win in the digital era?
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Create a Digital Business Framework
Suppliers
& networks
Customer
experience
Workforce
engagement
Internet of Things
& big dataSecurity
Cloud Platform
Digital Core
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Key value dimensions you should look after
Sales and Distribution
Reduce Customer Churn
Reduce Sales Cost
Reduce Order Management Cost
Reduce Cost of Processing Returned Goods
Asset Management
Reduce Un-Planned Downtime Or Outages
Reduce Asset Service and Maintenance Costs
Reduce Asset Risk
Reduce EH&S Penalties & Fines
Reduce EH&S Management Cost
Manufacturing
Reduce Total Manufacturing Costs
Reduce Manufacturing Cycle Time
Reduce Scrap Value
Supply Chain
Reduce Revenue Loss Due To Stock-outs
Reduce Days In Inventory
Reduce Inventory Carrying Cost
Reduce Inventory Obsolescence
Enhance Supply Chain Planning
Productivity
Reduce Total Logistics Cost
Sourcing and Procurement
Reduce Procurement Function Costs
Improve Supplier Compliance (Spend Management)
Improve User (Spec & Vendor) Compliance
Increase Sourcing Savings by Enhanced Supplier
Visibility
Reduce Accounts Payable Error
Finance
Reduce Days to Close Annual Books
Reduce Days Sales Outstanding (One - Time Benefit)
Reduce Finance Cost
Reduce Losses due to Fraud
Reduce Audit Cost
Service
Reduce Revenue Leakage
Reduce Service Delivery and Support Cost
Reduce Cost of Non Compliance to Service
Contract
Reduce Service Parts Inventory Carrying Cost
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Service
promise
The end-to-end digitized enterprise
as unavoidable consequence
Unit of one
[#/]
TimeDigital
economy
Number
of items, lots
Value, size of
items, lots
Why digitize the core?
Unit of one
End2End
Experience is the
New Product
12. 80-90 % ZERO TOUCH
Exception-based handling
<10 % LOW TOUCH
1995 2005 2015 201x
The Digital Core
System Of
Intelligence
block
Machine
Learning
Business Evolution Causes
Demand Of Automation
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Reimagine Consumer Engagement
$
Business
models
Business
processes
Work
Create virtual vertical integration
Share, rent, and optimize
Capitalize on insights
Personalized engagement
Virtual demand-and-supply networks
Hyperconnected manufacturing
Contingency-based operations
Transferrable functions
Trusted transparency
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Direct access to single
source of truth
Simulation capability
(what-if analysis)
Easy to
set up agenda
Redefine real time with a Digital Boardroom not only Boardroom
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Start at http://www.sap.com/s4hana for more information
Try
SAP S/4HANA
Detailed
SAP S/4HANA
road maps
Top questions
and answers
How to get there
Your path to SAP
S/4HANA
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