G2 SAP Product Lifecycle Costing Highlights Roadmap New .

Design to CostSAP Product Lifecycle Costing – Highlights, Roadmap,New Cloud EditionKatarzyna Maciak, SAP SEJulian Mayer, SAP SEWei Yuan, SAP Deutschland SE & Co. KGPUBLIC

DisclaimerThe information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission ofSAP. Except for your obligation to protect confidential information, this presentation is not subject to your license agreement orany other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in thispresentation or any related document, or to develop or release any functionality mentioned therein.This presentation, or any related document and SAP's strategy and possible future developments, products and or platformsdirections and functionality are all subject to change and may be changed by SAP at any time for any reason without notice.The information in this presentation is not a commitment, promise or legal obligation to deliver any material, code orfunctionality. This presentation is provided without a warranty of any kind, either express or implied, including but not limited to,the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This presentation is forinformational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions inthis presentation, except if such damages were caused by SAP’s intentional or gross negligence.All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materiallyfrom expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak onlyas of their dates, and they should not be relied upon in making purchasing decisions. 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC2

AgendaSetting the sceneHighlights since last PLM Info DayRecent innovations - New Cloud EditionRoadmapSummary 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC3

Design Business Process with SAP PLMIdea / RequirementsEarly EngineeringDetailed DesignPrototypingProductionServicePortfolio and Project ManagementIPD - CollaborationIPD Engineering – Requirements ManagementEarly Product CostingIPD Engineering – System EngineeringE-BOMManufacturing Bill of MaterialAVC - Advanced Variant Configuration (Run Time)AVC (Design Time)Master RecipeRecipe DevelopmentEngineering ChangeManagementManufacturing ChangeManagementPLM Handover / TDM Integration3D-VisualisationDocument Management 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICAdvanced capabilitiesERP core capabilities4

R&D / Engineering Design LifecycleEnable integrated R&D processes across all LoBs with consistent product dataIdeation or QuotationEarly DesignDetailed DesignProductionServiceIdea GenerationRFPDetailed SpecificationDefinitionEng. Project DetailsPlant Material ManagementHandover to ServiceIdea EvaluationInternal Review ProposalHigh Level Concept DesignDesign PlanningHandover to ProductionService DocumentationIdea SelectionValidate High LevelSpecificationCreate High Level Structureof BOMDetailed DesignTechnical DocumentationModel Publication to AINValidate High LevelSpecificationFirst Costing EstimateRevised Cost EstimateDigital PrototypingInspection PlanningFirst Costing EstimateInitial Quote ResponseAdapt High Level Structureof BOMCreate Engineering BOMRouting DesignProject ProposalRevised Cost EstimateCreate Concept AlternativesMake or Buy DecisionCustomer ValidationRevised Cost EstimateProject ProposalConcept ComparisonSupplier NominationPhysical PrototypingProject ReleaseConcept ReleaseFinal Product CostingManufacturing BOMCreationCompliance CheckRelease ManufacturingBOM 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC5

Lifecycle Costing – Product Cost ControlIdea / RequirementsEarly EngineeringDetailed DesignPrototypingProductionServiceManage costs for new product innovations &customer-specific engineered productsMinimize costs by securing future product marginsearly, when the design is evolving & master data isincompleteSimulate the impact of cost reduction measuresby identifying cost drivers in later stages of theproduct lifecycleGain visibility on cost structures across diverseteamsMRPL3 Deep Dive 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC6

SAP Product Lifecycle Costing – Key FeaturesCalculation StructuresCalculations, VersionsVariant MatrixReference CalculationsERP/Excel ImportProjectsProject Master DataLifetimesSurchargesCalculation Master DataMaterialCost Center, Work Center, ProcessSAP ERP & S/4HANA IntegrationAnalyticsSelf Service AnalyticsManaged AnalyticsManagement ReportingKPI AnalysisValuation DataPrices, RatesCosting SheetsMulti Currencies, Exchange Rate TypesUnits of MeasureExtensibilityCustom Fields / FormulasIntegration to other ApplicationsTemplatesAPI / Add In FrameworkUser SupportMass ChangeHighlightingLayoutSearchFurther InformationCloud EnablementUser Management / AuthorizationSecurity Engineering / LockingSingle Sign On / Data Security 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC7

Highlights since last PLM Info Day

Co-Innovation Workshop, February 2019Agenda Customers presenting: Daimler – current implementation Vestas – current implementation AGCO – after being live 1 year PWO – current implementation Partners presenting: EXA – Simulation Cockpit COSTDATA – How to include cost databasesand benchmark data into PLC. Presentationof PLC – COSTDATA integration. SAP presenting: Recent innovations, planned innovations,product direction 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC9

openSAP Course – Freedom to Calculate with SAP Product Lifecycle CostingDirect link to the training 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC11

30 Customers did and continuously do co-innovate with usLiveLiveLiveLiveLiveLiveLiveLiveLive 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC12

HMI Industrial Fair 2019 – ScenarioDESIGN TO OPERATE (Overview)Plan Project and collaborateIdeate1)3)Identify new Ideas fromImprovement Requirement(AIN)2) Customer feedbackSpecification RequirementEvaluate Ideas andvalidate.Smart Valve byManage new ProductDerive new requirementsor update existingRequirements using MLInitiate new ProductBuild out VariantsCreate newRequirements modelVariantConfigurationAnd other modelsDetailed EngineeringDerive productstructure and changeHandover newcomponents tosupplier andcontractmanufacturerTest and Validate 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICTest and validatenew systemCreateEngineeringStructure.CostSimulate newproduct basedonrequirementsand modelsSimulate newsystemOutsourced Manufacturing / Handover to OperateExchange BOMSet up teamcollaboration inIPDManage VariantsChangeCollaboration onstructured dataCreate newProject forsmart valveSelect one IdeaHandover toManufacturingCost new productstructureCost product variantsand volumesHandover to ServiceHandover to Serviceand operationsRequestproductimprovement.13

Recent Innovations

SAP Product Lifecycle CostingProduct Roadmap: Recent innovationsRecent innovationsPlanned innovations1 Switch to HANA XS Advanced Folders for organizing projects Cloud enablement (Release 1904)Product direction1Product vision1 Measure management Price and rate components Public backend API for transactionaldata maintenance Specific price determination percalculation version Folders for organizing calculationsand calculation versions Versioning for custom formulas Custom fields on project level Share link to calculation version Support formula-based quantity forvariant items Configuration UI Sum Variant Personal Data and Privacy usagereport and data export tools Edit lifecycle versions Improved UI for Post Install Tool Public backend API for master datamaintenance Auto-updating business client SAML authentication with supportfor two-factor authentication(Release 4.0) Formulas in Costing Sheet Further improvements for VariantMatrix view Instance-based authorizations formaster data Adaptability of cockpit view One-time cost distribution / lifetime Scaled prices for Materials andActivity rates Roll-up by any dimension for Analytics Syntax checker for formulas Central Add-In maintenance Quality checker Integration with other SAP applications Change history for Calculationversions Simulation and What-If Analysis (incl.Machine Learning) Machine hourly calculationContinuous investment in cross topics: Extensions to add-in-framework Usability improvements Machine Learning1. This is the current state of planning and may be changed by SAP at any time without notice. 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC15

Cloud EnablementSAP Product Lifecycle Costing is also available as a public cloud editionMotivation / Context Offers a new deployment modelHighlights 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Same functionality as on-premise version Lower operation costs Faster deployment Easier implementation Increased resilience and security16

On-Premise & Cloud, two alternative Usage OptionsTwo alternative deployment options for one solutionCriteriaOn-Premise Release 4.0Cloud Release 1903Features Version 4.0 Same features as in Version 4.0Cost Pay associated hardware,energy and IT costsHosted by customer on his ownserversPriced under a license fee Predictable costs over timeNo additional hardwareinvestmentHosted by SAP in the CloudAnnual subscription fee Data security is handled by thecustomer Data security is handled by SAPaccording to strict securitystandards Customer has control over theimplementation process Implementation process takesless time Customer has complete controlover upgrade timing and processUpgrade process takes longer Continuous updates triggered bySAP SecurityImplementationUpgrade 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 17

Roadmap

SAP Product Lifecycle CostingProduct Roadmap: Planned innovationsRecent innovationsPlanned innovations1 Switch to HANA XS Advanced Folders for organizing projects Cloud enablementProduct direction1Product vision1 Measure management Price and rate components Public backend API for transactionaldata maintenance Specific price determination percalculation version Folders for organizing calculationsand calculation versions Versioning for custom formulas Custom fields on project level Share link to calculation version Support formula-based quantity forvariant items Configuration UI Sum Variant Personal Data and Privacy usagereport and data export tools Edit lifecycle versions Improved UI for Post Install Tool Public backend API for master datamaintenance Auto-updating business client SAML authentication with supportfor two-factor authentication(Release 4.0) Formulas in Costing Sheet Further improvements for VariantMatrix view Instance-based authorizations formaster data Adaptability of cockpit view One-time cost distribution / lifetime Scaled prices for Materials andActivity rates Roll-up by any dimension for Analytics Syntax checker for formulas Central Add-In maintenance Quality checker Integration with other SAP applications Change history for Calculationversions Simulation and What-If Analysis (incl.Machine Learning) Machine hourly calculationContinuous investment in cross topics: Extensions to add-in-framework Usability improvements Machine Learning1. This is the current state of planning and may be changed by SAP at any time without notice. 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC26

Summary

Further InformationSAP Web Site 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICSAP Help PortalSAP CloudAppliance Library44