SAP And Siemens Partnership In PLM

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SAP and Siemens partnership in PLMLars FossumBusiness Development PLM, SAPEspen Leknes Product Owner, SAP

DisclaimerThe information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP.Except for your obligation to protect confidential information, this presentation is not subject to your license agreement or any other serviceor subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or any relateddocument, 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 platforms directions andfunctionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in thispresentation is not a commitment, promise or legal obligation to deliver any material, code or functionality. This presentation is providedwithout a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for aparticular purpose, or non-infringement. This presentation is for informational purposes and may not be incorporated into a contract. SAPassumes no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or grossnegligence.All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially fromexpectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates,and they should not be relied upon in making purchasing decisions. 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC2

AgendaSAPSA PLM Focus Group Webinar 23.04.2021 Industry challenges SAP/Siemens partnership in PLM SAP Teamcenter and synergy areas Teamcenter/SAP integration Q&A 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC3

Challenges of the industry

Customer Road To Value – Customer ChallengesProductIndividualizationProduct and ProjectComplexityCUSTOMERCHALLENGESImproveTime To Value 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICManage Closed-loopedEnterprise Processes5

Product Development Execution Challenges24%34%29%25%19%Frequent DesignChangesChanging DesignRequirementsProjects areunderstaffedIncreased ProductComplexityProblems/errors arefound too lateHow can I improve myproduct developmentcollaboration processto do more with less?How can I manageproduct complexity,ensure quality & meetcompliancerequirements?How can I catch errorsearly in the game inorder to control costs& maximize profits?How can I decrease theHow do I effectivelyamount of effort andtrack & managecosts put into frequent continuous change indesign changes?product requirements? 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICAberdeen Group publishing on Engineering.com - Thinking about switching CAD tools? What you need to -switching-CAD-tools-What-you-need-to-know.aspx)6

Imagine a digital thread that ties everything together!From product to asset lifecycle managementImagine if every discrete manufacturer, product design team, and service lifecyclemanager could have a single digital thread that integrates all the real-timeinformation, feedback, performance, and data on a product from cradle to grave. 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC7

SAP/Siemens Partnership“Enterprise Wide – Engineering Deep”

The Partnership Announcement – July 14, 2020“Through this agreement, both SAP and Siemens will be able to complement and integrate theirrespective offerings in order to offer customers the first truly integrated and enhanced solutionsfor product lifecycle management (PLM), supply chain, service and asset e-industrial-transformation/82667 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ -accelerate-industrial-transformation/9

The best of both worldsThe world leader inenterprise applicationsoftware and end-to-endsupply chain solutions.The leader in productlifecycle software,industrial automationand digitalization. Dramatically improvetime to value Design products withreal-time supply chain Create a sustainableproduct developmentprocess Create a singledigital thread

&How the Partnership will Work§ SAP to resell Siemens Teamcenter software asits core platform for product data management§ Siemens to resell SAP Intelligent AssetManagement and SAP Project and PortfolioManagement§SAP and Siemens will provide an integrateddigital thread across the product lifecycle fortheir customers§SAP and Siemens remain committed tosupporting existing installed base customersthroughout their lifecycle 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC11

The Digital Thread that ties everything together!From product to asset lifecycle managementCAD/CAE, eBOM,ConfigurationPlanning,mBOM, sBOMProduction andExecutionAsset &Resource UtilizationTBDSingle Product MasterTransparent ChangeSeamless Digital TwinPervasive product informationfederated across the entireproduct lifecycleVisibility to all stakeholders tomanage the impact of changefrom workgroup to enterprisePervasive product informationfederated across the entireproduct lifecycle 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC12

SAP Teamcenter by SiemensSAP will now offer Siemens Teamcenter as part of the SAP portfolioSAP Teamcenter by Siemens is a modern,adaptable product lifecycle management (PLM)system that connects people and processes, acrossfunctional silos, with a digital thread for innovation. 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ ystemsEngineeringSupplierManufacturingService13

SAP Teamcenter by SiemensSearching and navigating data and BOM 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICIntegration to CAD14

Siemens & SAP: Creating End-to-End Process ThreadsPartnership and Synergistic AreasConfigurationSupplier Collaborationconsistent configuration knowledge andhandover across PLM & ERPseamless collaboration combining engineering and businessdata across partners and business processesSystems Engineeringa well-orchestrated and integrated environmentto realize a model based enterprise digitalthreadVisualizationIMAGINE Portfolio & Project Managementaccelerating time to market through aseamless visual digital thread from design tooperateIntelligent Asset Managementaccurate real-time trackingof product investments against plannedbudget and time constraintsan integrated flow of asset information fromengineering to asset operationsSeamless Digital Thread 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC15

Teamcenter/SAP integration

The Foundation of our Vision: Best in class Integration and InteroperabilityIntegration & InteroperabilityOne joint integration solution which: Aligns on a common Domain Model Comes with proven integrationsEngineering &Simulation ToolsSiemensTeamcenter CoreItem RevisionmCAD IntegrationsBill of MaterialeCAD integrationsChange No. Provides access to data acrosssolutions Supports seamless setup and operation Offers existing customers a path Supports on-premise, hybrid and cloud Configuration 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICSAP S/4HANAItem Best PracticeContentAligned Domain Model Builds on SAP and Siemens know howClosed LoopScenariosMaterial MasterBill of ervice .OperationsMonitoring17

Potential Scenarios Next Generation integrationLab PreviewFocus of integrationCross ProjectManagementService ementConfiguration§ The goal of the initial release is to build a solid and reliable foundation forfurther and extended g§ Start with the basic business entities which are required for all industriesand business processesMonitoringClassificationMaster dataAlignment§ Subsequent releases will extend the E2E process coverage for specificindustry and business processes like CTO or amcenterRepository§ The integration enables a seamless exchange of product relevant data toenable a bidirectional process integration.§ Establish a master data alignment (e.g. in the area of Unit of measure,Basic material libraries, material revisions) to ease the implementationeffort.Access &AuthorizationInnovateCore Functions§ Build a solid foundation for operating, maintaining and configuring crossE2E processes to be able to monitor, control and trace all systeminteractions.Foundation 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC18

Challenges for our IntegrationFlexibility of the TC Data ModelTC Data Model - Flexibility SAP Data ModelTC Data Model is flexible regards to object relations and attributesTC Data Model is pretty generic,without a clear defined Business Semantics TC delivered about 120 Object Types over the years with variations The business process defines the data flow and the relevantmaster data entitiesThe business process may deviate from customer to customerSAP Master data itself is agnostic from the process delivering thisdata TC Data Model – Customer Situation TC Customers and Partners used different approaches to solvebusiness problems TC Customers adjusted their object relations and propertiesTC Customers installations are different with high deviations Enable down stream SAP processes,which requires a high standardization of the dataThere are a few flavors on the master data (e.g. validity),but semantically defined for the processesè Biggest Challenge for IntegrationBusiness ProcessFlavor 1TC Variation 1TC Variation 2 TC Variation 94 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICJSONMetaDomainModelFlavor 2ExtensibilityFlavor 319

Lab PreviewSiemens Teamcenter IntegrationFocus on S/4HANA On-Premise IntegrationTeamcenterEngineering & CAD DomainS/4HANAMaster Data EntitiesSemantic Integration approachAligned Domain / Meta ModelGuiding principles for the Integration We start from the various Business Processes MetaModelT4STTeamcenter Integration NGIPublic SAP APIsSiemens Teamcenter One aligned Meta Model for a semantic integration More than 30 Business Object Types with dependencies & hierarchies Integration is based on public Released APIs Synchronous API for UI Asynchronous Data Integration (Messages) Focus on digital threadè Traceability & Linking entities across system boundariesSAP S/4HANASiemensIdentify user roles and business entitiesBi-Directional Process and Data FlowSAPBusiness Process 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC20

Domain modelHistory of highly coupled systems – dependent on specificcomponents on other side.Current integrations developed with a specific system pointof view – making changes and upgrades harderCreating unnecessary dependencies between systemsCreate an abstraction layer between the systems –with agreed interfaces and business logic for how toexchange informationPrescriptive processes and implementation forreduced cost and risk 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC21

Domain model Well defined entity model Supports internal variation – examples with and without CAD-part separationSiemens Change master and change record SAPDefined keys and object identifiers 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC22

NGI Architecture 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICLab Preview23

End to End process 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC24

High-Level Solution architecture scenariosPLMNGIPLMNGIPLM/MFEPLM/MFEOpcenter 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ Not NGI25

Make to Stock – ERP FocusE2E industry value chain with intelligent industry scenarios embeddedR&DRequirementsMulti-CADEngineering BoMManufacturing EngineeringEngineering BoMProduct CostingSimulationManufacturing BoMService BoM(plant specific)ProjectManagementSupply ChainRouting(plant specific)ManufacturingPlanningShop FloorProduction OrderSourcing and PlanningSales &DeliveryInventoryManagementWork InstructionsProductionExecutionSlaveMasterMaster Data ViewOwnershipPLM 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICERPMES26

Make to Stock – PLM FocusE2E industry value chain with intelligent industry scenarios embeddedR&DRequirementsMulti-CADManufacturing EngineeringEngineering BoMManufacturing BoMService BoM(plant specific)Bill of Processes(plant specific)Manufacturing BoMService BoM(plant specific)Routing(plant specific)Sourcing and PlanningSales &DeliveryManufacturingPlanningSimulationShop FloorSupply ChainProduction OrderInventoryManagementWork InstructionsProductionExecutionSlaveMasterMaster Data ViewOwnershipPLM 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICERPMES27

Q4 2021: Delivers Product Development to SAP integrationLab Preview§ Integration foundation (joint domain model, federation/linkage, traceability)§ Creation of Material Masters in SAP based on business guration§ Transfer of Classification information to SAPMaterialManagement§ Creation of Document Info Records in SAPDocumentManagementSystem§ Transfer of Bill of Materials to ter dataAlignment§ Teamcenter triggered Engineering ChangeAccess &Authorization 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC28

Lab PreviewQ2 2022: Expands scope and closes the loop between Product Developmentand SAP§ Creation of Plant specific and configurable Material Masters andCross ionMaterialManagementBill of MaterialsBOMManagement§ SAP triggered engineering and manufacturing lanning§ Transfer of variant definition for Variant Configuration§ Provisioning of manufacturing relevant information data along thebusiness process§ Transfer of classic SAP Routings§ Enablement of cross system Portfolio and Project Management 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC29

Lab PrQ4 2022: Bi-directional system interoperability and advanced integrationscenarioseview§ Maintenance of order specific Bill of Materials in SAPCross tChangeVariantManagementConfigurationengineering constraint rulesVisualizationVariantConfiguration§ Exchange of product models for Variant Configuration andProductionPlanning§ Enablement of streamlined Engineer to Order scenarios§ Exchange of Supplier information based on Vendorinformation§ Enablement of cross system traceability for workflows§ Enablement of cross system impact analysis 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC30

Summary

Value of Siemens/SAP partnershipIncreasing product complexity requires a seamless digital threadBest of both worlds Together, Siemens and SAP will deliver integrated end-to-end software solutions acrossproduct lifecycle, supply chain and asset management.Break down the silos Improve collaboration between engineering and business so everyone have the informationneeded to quickly create and manage high quality product and service offeringsTrue digital thread Provide people across the business with real-time access to product and business informationDigital twin Integrate all virtual product data with business information, feedback and performance dataover the entire lifecycle to establish the digital twinIndustry 4.Now Drives digitalization and delivers a comprehensive foundation for Industry 4.0Time to Value Increase productivity, while reducing development time and cost 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC32

Q&A

Thank youContact information:Contact information:Lars FossumGlobal CoE, Teamcenter 47 92 25 62 15lars.fossum@sap.comEspen LeknesProduct Owner 47 92 86 88 58espen.leknes@sap.com

SAP Teamcenter by Siemens SAP will now offer Siemens Teamcenter as part of the SAP portfolio SAP Teamcenter by Siemens is a modern, adaptable product lifecycle management (PLM) system that connects people and processes, across functional silos, with a digital thread for innovation. Vault Design BOMs Documents Process Supplier Systems

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