Industry Innovations With SAP Leonardo: Consumer Products And Retail .

Industry Innovations with SAP Leonardo: Consumer Products and Retail Industries Ted Combs, SAP PUBLIC

Agenda Digital Transformation Within the Consumer Products and Retail Industries SAP Leonardo Offerings Digital Transformation of Your Business with SAP Leonardo Examples Next Steps 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 2

Digital trends transforming the industries Digitally armed customers expect new types of experiences Rapid response to changing trends is critical for survival They want delivery in real time and free or not at all 86% 27% 80% of buyers will pay more for a better customer experience1 few retailers can adjust pricing & assortments across channels2 of shoppers surveyed want same-day shipping3 1 CEI Survey 2015 2 SAP Benchmarking 3 Temando Survey: State of Shipping in Commerce 2016 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 3

Technology trends enabling digital transformation Artificial intelligence and machine learning Internet of Things Virtual and augmented reality Cloud computing Providing deep insight into consumer behavior Delivering end-to-end supply chain transparency Adding real-time digital information to the shopping environment to drive next-generation consumer experiences Quickly supplying capacity without major capital investment 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 4

SAP Leonardo: integrating today’s transformational technologies Internet of Things Analytics Big Data Machine learning Connecting things with people and processes Insights that enable transformative actions Managing vast amounts of Big Data Intelligence enabled by learnings from data Connected products, assets, and fleets to drive the industrial IoT All analytics across your business Distributed storage and computing Embedded machine learning Real-time insight discovery Intelligence embedded into enterprise applications Connected infrastructures, markets, and people to enable the Internet of Everything New processes and applications based on insights Insights embedded into business processes Cloud platform Foundation for SAP Leonardo Common foundation across applications and technology (In-memory) real-time data management Integration of things, people, and processes 2017 SAP Leonardo Live. All rights reserved. I PUBLIC Integrated intelligence to solve common business challenges Training and deployment of deep learning models Blockchain Blockchain services embedded into business applications Increased trust in peer-to-peer transactions Full visibility of goods provenance and history of ownership Design thinking Data Intelligence Innovative, engaging methodology Putting data into business context Uncovering the opportunities for your digital transformation Trusted, real-time benchmarks Use of SAP Build to ideate and create rapid, interactive prototypes Data asset monetization Decision-making scenarios Understanding user needs Increased auditability and decreased fraud 5

SAP Leonardo is our system of innovation Integration Connected data Collaboration Design thinking Mobile Big Data Business process innovation Intelligently connecting people, things, and businesses IoT Natural language Machine learning Real-time analytics 2017 SAP Leonardo Live. All rights reserved. I PUBLIC APIs Networks Microservices Experience 6

Your path to digital transformation: a differentiated engagement model Discover, design, and prototype Explore 1 1 Day SAP Leonardo Innovation Services, express edition SAP Leonardo Innovation Services, open innovation edition Deep-dive engagement Ability to innovate on SAP Leonardo Design thinking 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 2 Fast engagement 80% solution bundles Deliver 3 Cloud and services contract 2 weeks Industry accelerators – software and services 6 weeks Services contract SAP Cloud Platform developer 2 3 Enterprise digital blueprint, industry 9 weeks Discover, design, and prototype Deliver 7

Industry accelerator packages shorten the time to value Industry knowledge Consumer products Retail Manufacturing Sports and entertainment Chemicals Travel and transportation Utilities Software Cloud Big Data Machine learning Blockchain Analytics IoT Design thinking SAP Leonardo Innovation Services Discovery workshop Design and prototype Business case Technical blueprint ac·cel·er·a·tor Fixed-price accelerator bundles of necessary expertise, data, and software integrated to solve a specific and common business problem, plus the services to get started and deliver business value quickly 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 8

To transform – consumer products prioritize new models and processes Strategic priorities: New business scenarios 1. Compete as an ecosystem Rethinking the whole business from the end customer’s perspective 2. Deliver products as services Configurability Adaptability Personalization Energy management Cold chain monitoring Track and trace Asset intelligence Live logistics Consumer trends Predictive maintenance Automated order and replenishment Real-time offers Predictive forecasting Asset monitoring 3. Serve the “segment of one” Intelligent Self-aware Sustainable product innovation Sourcing and procurement Agile manufacturing Real-time supply chain Sales and marketing Finance 4. Build hyperconnected networks Flexible reaction to changes in demand, supply, and resources 5. Business model outcomes After-sales service Value-add services Usage-based charging 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 9

To transform, retailers prioritize new business models and processes Strategic priorities: New business scenarios 1. Customer centricity Rethinking the whole business from the end customer’s perspective 2. Serving the “segment of one” Configurability Adaptability Personalization 3. Digital smart products Consumer trends Live logistics Real-time offer management Smart shelves Marketing and merchandising Automated order and replenishment Procurement and private label Cold chain monitoring Track and trace Live store Live assets Employee retention and churn Smart fitting room Predictive forecasting Self-aware Asset monitoring 4. Digital supply chain and smart factory Vehicle insights Supply chain Intelligent Omnichannel customer experience Human resources Flexible reaction to changes in demand, supply, and resources Finance 5. “Servitization” and new business models After-sales service Value-add services Usage-based charging 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 10

To transform, companies are reinventing business models and processes Customer-centric ecosystems Reimagined business models focused entirely around the end customer Competition between unlikely partners Serving the “segment of one” Configurability Personalization Relevancy Digital smart products Intelligent Self-aware Just-in-time delivery and consumption Digitalize the entire demand chain Flexible, real-time reactions to changes in demand, supply, and resources Automatic real-time adjustments based on shifts in demand, availability, and external conditions New service models Value-add services Usage-based charging Flexible commercial models (buy, rent, use, and the like) 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 11

SAP Leonardo helps you achieve your digital priorities Sustainable product innovation Sourcing and procurement Agile manufacturing Real-time supply chain Sales and marketing Finance Logistics Compete as an ecosystem Connected coolers Deliver products as services Serve the “segment of one” Build hyperconnected business networks Connected manufacturing Model business outcomes to drive speed at scale Internet of Things Digital innovation SAP Leonardo SAP Cloud Platform 2017 SAP Leonardo Live. All rights reserved. I PUBLIC Automated replenishment Machine learning Analytics services Cold chain logistics UX services Analytics Mobile services Blockchain Security services Big Data Collaboration services 12

SAP Leonardo Industry Accelerator Packages SAP Leonardo for Consumer Products, Assets Option

Damage and theft monitoring Check Location Inventory monitoring 2017 SAP Leonardo Live. All rights reserved. I PUBLIC No technical issue What if you could manage thousands of branded coolers – from your desk? Alerts if there are problems 14

Damage and theft monitoring Damage and theft monitoring No technical issue No technical issue Check Location Inventory monitoring Inventory monitoring 2017 SAP Leonardo Live. All rights reserved. I PUBLIC Alerts if there are problems Alerts if there are problems 15

Damage and theft monitoring Inventory monitoring 2017 SAP Leonardo Live. All rights reserved. I PUBLIC No technical issue Alerts if there are problems 16

Damage and theft monitoring No technical issue Inventory monitoring Alerts if there are problems Savings in time, labor, lost revenue 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 17

Damage and theft monitoring No technical issue Inventory monitoring Alerts if there are problems Savings in time, labor, lost revenue Savings in time, labor, lost revenue 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 18

Damage and theft monitoring Inventory monitoring No technical issue Alerts if there are problems Easily monitor 10s to 10,000 of coolers Savings in time, labor, lost revenue 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 19

Damage and theft monitoring Inventory monitoring No technical issue Alerts if there are problems Savings in time, labor, lost revenue 2017 SAP Leonardo Live. All rights reserved. I PUBLIC Easily monitor 10s to 10,000s of coolers Easily monitor 10s to 10,000 of coolers with SAP Leonardo industry accelerator packages: SAP Leonardo for Consumer Products, assets option 20

Industry accelerator packages for consumer products, assets option Benefits include: Accelerator includes: Help ensure merchandising compliance SAP Connected Goods Predict and automate maintenance scheduling Help guarantee cooler availability and uptime Maximize availability by monitoring demand in real time SAP Cloud Platform: application run time for connected goods, IoT services, IoT application enablement services, extension package, premium edition SAP Leonardo Analytics (business intelligence and predictive) Machine learning foundation services SAP Data Network*, Big Data hub* Other solutions that can complement BOM: SAP Predictive service, SAP Enterprise Asset Management (plant maintenance), SAP Work Manager, SAP Leonardo IoT Edge, SAP Dynamic Edge Processing *Future innovation 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 21

SAP Leonardo Industry Accelerator Packages SAP Leonardo for Retail, Distribution Option

How to have full visibility into your entire supply chain – from your iPad 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 23

Know the exact status and location of deliveries, 24x7 Monitor for damage and theft Alert: Traffic Slowdown Truck 103 Warning: Temperature Rising Truck 25 Receive automated alerts with detailed drill downs 2017 SAP Leonardo Live. All rights reserved. I PUBLIC Help ensure optimal conditions are always maintained 24

Know the exact status and location of deliveries, 24x7 Know the exact status and location of deliveries, 24x7 Monitor for damage and theft Alert: Traffic Slowdown Truck 103 Warning: Temperature Rising Truck 25 Receive automated alerts with detailed drill downs Help ensure optimal conditions are always maintained Monitor for damage and theft Alert: Traffic Slowdown Truck 103 Warning: Temperature Rising Truck 25 Receive automated alerts with detailed drill downs 2017 SAP Leonardo Live. All rights reserved. I PUBLIC Help ensure optimal conditions are always maintained 25