The Intelligent Chemical Enterprise Industry Trends . - SAP

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The Intelligent Chemical EnterpriseIndustry Trends and SAP Strategy ChemicalsDr. Marko Lange – Solution Manager IBU Chemicals, SAP SESAP User Group Webcast, November 2019INTERNAL

Legal disclaimerThe information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission ofSAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP.SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop orrelease any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible futuredevelopments, products and or platforms directions and functionality are all subject to change and may be changed by SAP atany time for any reason without notice. The information in this document is not a commitment, promise or legal obligation todeliver any material, code or functionality. This document 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 document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility forerrors or omissions in this document, except if such damages were caused by SAP s willful misconduct 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

The chemical industry is being reshaped by four major trends Ongoing commoditization and margin erosion require chemical companies to focus onportfolio optimization, co-innovation, and the selling of business value and outcomes insteadof just products, with the ultimate goal to deliver entirely new customer and consumerexperiences. Digital is the new norm, with technologies such as the Internet of Things (IoT), machinelearning (ML), blockchain, the cloud, and analytics providing new opportunities for chemicalproducers to cut costs by automating the back office and running low-touch operations. As the playing field is being changed by disrupters coming in from all angles, chemicalcompanies are looking beyond traditional value chains and starting to compete in complexecosystems. In a more and more dynamic world with mergers, acquisitions, and divestitures as keyvehicles for portfolio optimization and sustainable growth, strategic, market-driven agility hasbecome an imperative to survive and thrive. 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC3

SAP s CHEMICAL INDUSTRY VISION 2025By 2025, chemical company revenue will depend on innovative products andservices that derive from new business models. These new models range fromrelatively simple aftersales service offerings to complex outcome-as-a-servicemodels, and include programs to monetize corporate knowledge, intellectualproperty and data assets. Increasingly, these new ways of doing business will relyon real-time data sharing and collaboration with customers on new platforms,supported by extended partner ecosystems. 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC4

STRATEGIC INDUSTRY PRIORITIES FOR CHEMICAL COMPANIES TOTRANSFORM THEIR BUSINESSSell Business Outcomes Instead of Just ProductsConnect to and collaborate with your customers, understand and become part of their value chains,–and leverage digital technology to deliver innovative services, business outcomes, and unprecedentedcustomer experiences, instead of just selling products.Simplify to Shrink Cycle TimesRun simulations and predictive models, enable real-time sense and response, and use IT and–operations technology integration and the IoT to reduce time to market, streamline operations,maximize asset performance, and minimize rework.Compete As an EcosystemCapitalize on open innovation, leverage extended manufacturing networks, go beyond the boundaries–of your existing value chain, and understand the needs of your customers’ customers. Adopt thecapability to flexibly redesign your network and relationships in line with market dynamics.Adopt Strategic Agility in Response to Market DynamicsAdjust your strategy and portfolio dynamically in response to market opportunities and needs, grow–rapidly into new markets or segments, and capitalize on mergers, acquisitions, and spin-offs to securecontinued growth in a challenging global environment. 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC5

Chemicals Value Map 2019Customer Engagement and CoInnovationIntegrated OperationsManagementPlanning & SourcingDelivery & ServiceSingle Customer ViewSales, Inventory, and Operations PlanningOperational ProcurementProduct ComplianceConsent-Based MarketingDemand Management and InsightsManufacturing ExecutionOrder PromisingOptimized MarketingResponse and Supply ManagementManufacturing NetworkWarehouse ManagementPortfolio and Project ManagementManufacturing Planning and OperationsIndustrial InsightsTransportation ManagementProduct Formulation and Recipe DevelopmentSourcing and Contract ManagementEnvironment, Health, and SafetyTrack & Trace and Logistics NetworkSales Force AutomationSupplier ManagementAsset Operations and MaintenanceYard LogisticsSales Performance ManagementInventory and Basic Warehouse ManagementIntelligent Asset ManagementOmnichannel Customer ServiceQuote to CashProcurement AnalyticsServices ProcurementOmnichannel Commerce ManagementSupplier CollaborationExternal Workforce ManagementCommerce PersonalizationCentral ProcurementInvoice and Payables ManagementHumanResourcesCore Human Resources andService DeliveryPayroll & Time andAttendance ManagementTalent Management andLearningTalent AcquisitionPeople AnalyticsAccounts Payable andReceivablesReal Estate ManagementFinancial PerformanceManagementAccounting and FinancialCloseFinance OperationsTreasury ManagementEnterprise, Risk, andComplianceCybersecurity and DataProtectionAnalyticsApplication Platform andInfrastructureDatabase and DataManagementIT ManagementSecurity SoftwareFinancePlatform andTechnology 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICLink (please use Chrome)Core industry prioritiesIoT Business andTechnology ServicesCross-enterprise supporting prioritiesTechnology and platform7

2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC8

Value based, digital industry roadmaps – structure3 levels to connect coherently from thought leadership to capabilities, value and single innovationsIndustry level1 Industry trends, priorities and role of SAP.Business Value across Value Chain2 Recent and upcoming highlights as well as SAP’svision per business priority leading to the IE.Solution/Capability and Innovation level3 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Recent and upcoming innovations for new andenhanced capabilities.Production Consumption UI9

Chemicals reference architectureCollaboration & PresentationSAP DocumentCenter, cloudedition*SAP JAMCollaboration*SAP JAMCommunitiesKeyCloudOn-PremiseSAP CloudPlatform Portal*SAP FioriAvailable inCloud &OnPremiseSAP Cloud Platform Services marked with *Customer ExperienceSAP Cloud forCustomerSAP CustomerData CloudSAP S/4HANASAP AssetIntelligenceNetworkSAP AssetStrategy &PerformanceSAP CommerceDigital CoreSAPTransportationManagementSAP GlobalTrack and TraceSAP ExtendedWarehouseManagementSAP SupplyNetworkCollaborationSAP SupplyChainManagementProduct LifecycleManagementIntelligent InsightsSupply Chain ManagementSAP IntegratedBusinessPlanningWorkforce EngagementSAP ceSAP BW/4HANASAP InnovationManagementSAP MarketingSAP BusinessByDesignIoTSAP PredictiveMaintenanceand ServiceSAP BusinessOneSAP S/4HANAFinancial ManagementSAPManufacturingIntegration andIntelligenceSAP ConnectedManufactruingSAP RevenueAccounting andReportingSAP BusinessPlanning andConsolidation, versionfor SAP NetwaeverSAP AccessControl for SAPS/4HANASAP GlobalTrade ServicesSAP VisualEnterpriseAriba NetworkSAP AribaSAP WorkManagerSAP ConcurSAP dulingTechnology PlatformSAP EnterpriseThreat DetectionSAP Single SignOnSAP SolutionManagerSAP CloudPlatformUXCollaborationSpend ManagementEnterprise ManagementSAP CPQSAPSuccessfactorsSAP FieldglassVendorManagementSystemSAP icesIntegrationInternet ofThingsSecurityRuntime andDevOpsData & StorageSAP GatewaySAP NetweaverSAP IdentityManagementData ManagementSAP CloudPlatform BigData ServicesSAP Agile DataPreparationSAP MasterDataGovernanceSAP DataServicesSAP InformationStewardSAP HANAsmart dataintegrationSAP Data HubDatabaseSAP HANA,platform edition 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICSAP Vora10

Customers asked for clear guidance toward an intelligent enterpriseTODAYWhich solutionshould be usedin which usecase?Whichproducts do Ineed?What is thebusiness valueof innovation?What is thecost of a newsolution?What industryspecificguidance doesSAP offer?What aboutlicenses? 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICTOMORROWGUIDANCE 11

Transformation scenariosTransform my landscapeWith a future product mapSAPTRANSFORMATIONNAVIGATORTODAYSAP ERP-centriclandscapeEvolve my businessWith new capabilitiesFUTURESAP S/4HANAcentric landscapeBuild my platformWith SAP’s digital portfolio 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC12

Generates company-specific product map & guidesCUSTOMER INPUTSTOOL OUTPUTSBusiness guide – why?Current product listValue drivers Aspiration ranges Tracking KPIs Pre-filled from support profileBusiness needsSelect Navigate Display Share Selected from capabilitycatalog Products(2,060)Proof Points(1,060)IT-strategyPrompted decision points,such as cloud preference 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICTechnical guide – what? Industry reference mapProduct recommendationsDecision pointsCapabilities(1,650)Transformation guide – how?Decision Points(14,070)Serviceassignments( 200)Value Drivers( 420)TrackingKPIs( 400) Transition typesLicense policiesServices13

Join Us and our SAP Community ml@SAPChemicalsSAP Community Expert PageSAP IndustriesChemical Industry SAP User GroupSAP Women in Chemicals 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC14

Thank you.Contact information:Dr. Marko LangeSolution Manager, IBUChemicals, Industry Business SolutionsT: 49.6227.7.47943M: 49.170.8555608E: marko.lange@sap.com

Follow uswww.sap.com/contactsap 2019 SAP SE or an SAP affiliate company. All rights reserved.No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission ofSAP SE or an SAP affiliate company.The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and itsdistributors contain proprietary software components of other software vendors. National product specifications may vary.These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation orwarranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warrantystatements accompanying such products and services, if any. Nothing herein should be construed as constituting an additionalwarranty.In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document orany related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, andfunctionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reasonwithout notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, orfunctionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differmaterially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and theyshould not be relied upon in making purchasing decisions.SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registeredtrademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service namesmentioned are the trademarks of their respective companies.See www.sap.com/copyright for additional trademark information and notices.

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