EAB - S4HANA Customer Value & Success Update Sept2020.pptx

S/4 HANA Success stories - Value Proposition to Enterprise

1. PUBLIC EAB - SAP S/4HANA Collaboration Workstream UPDATE: S/4HANA Customer Value & Success William ‘Bill’ Bowers, SAP SE September 9 th , 2020

2. © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL ǀ 3 SAP (17 years) William ‘Bill’ Bowers, SAP SE S/4HANA GTM & Solution Mgmt. GVP – Customer Value & Success SAP MOVEMENT Leadership Team [email protected] [phone] [phone] SAP Customer (IBM – PC Company) SAP Partner (Trilogy & JDA/i2 Technologies) Consultant / Implementer (IBM, Trilogy & JDA/i2 Technologies) SAP Competitor (JDA/i2 Technologies)

3. 4 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Level- Set: SAP S/4HANA Strategy (10) How does S/4HANA Equip Businesses to Stay Ahead of Change? SAP S/4HANA Value Proposition (15) How does S/4HANA deliver incremental customer value? Challenges in Building the Case (5) Why are customers challenged to build a solid S/4HANA Business Case? Transforming Value Management (15) How is SAP transforming the way we help customers manage value? Q&A and Feedback (15) Where do you need help managing value? Today’s Discussion Outline

4. Level-Set: SAP S/4HANA Strategy How does S/4HANA Equip Businesses to Stay Ahead of Change?

5. 6 The Rules for Business Success are Changing ©2020 SAP SE or an SAP affiliate company. All rights reserved. Volatile markets demand flexible and resilient business models Employees demand purposeful and flexible workplaces Customers demand unique and exceptional experiences Society demands responsible companies

6. 7 Customers demand a modern, flexible ERP allowing them to run their mission critical industry specific processes at scale from Integration of applications to Integrated processes from General Intelligence to Intelligent processes from Industry customization to Industry adaptation based on next practices ©2020 SAP SE or an SAP affiliate company. All rights reserved.

7. 8 You cannot solve today’s challenges with yesterday’s tools Becoming an intelligent enterprise requires a different mindset, different practices, and different systems ©2020 SAP SE or an SAP affiliate company. All rights reserved.

8. 9 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Model SAP S/4HANA Value Proposition 60% Increase in Revenue 25% improvement in customer retention 8% lower inventory working capital Nantong Co Ltd 40% reduction in days sales outstanding “To minimise our carbon footprint, we need to understand the impact of our production and logistics along our entire value chain.”

9. Scope The broadest ERP in the market: 25 industries, 30 languages, 180 countries Modern, modular Cloud Suite Deeply integrated, end-to- end processes: One user experience built on one source of truth Real- time steering across the value chain with reporting, predictive analytics, and integrated planning Intelligence and innovation with 150+ AI Cases(*) along business processes A modular, hybrid approach to take you to the cloud at your own pace - with 99.9% cloud uptime Process Integration UX & Embedded Intelligence Planning & Analytics Operations & Security Most modern ERP suite driving operational excellence and business model innovation to help customers turn into an Intelligent Enterprise 1 2 3 4 5 The Answer: SAP S/4HANA 10 © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

10. Process Integration Lead-to- Cash Service & Source- to- Pay Finance Hire to Retire Prof. Services Design- to- Operate Planning & Analytics Finance & Financial Planning • Supply Chain • Manufacturing • Asset Mgmt. Supply Chain Planning • Procurement • Sales • Service • R&D / Engineering Operations & Security Scope 1 2 3 UX & Embedded Intelligence 4 5 SAP S/4HANA: Next Generation Suite of Intelligent Business Applications XPA (Cross- Planning & Analytics) + Real Time Steering S/4HANA Cloud SaaS S/4HANA On Premise & in the Cloud deployed by SAP (HEC), Hosting Partner, or Customer 11 © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

11. New *1809/ ** 1909 12 © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC SAP S/4HANA: what is different to SAP ERP? Procurement Overview Central Procurement * Contract proposals * Prop. groups & cat. items * Image based buying** MRP live & MRP Cockpit Det. Scheduling PPDS DDMRP* Prod Engineering & Ops Predictive MRP** Portfolio & Proj. Mgmt. Software Mgmt. Product Compliance * Recipe Management* New VC Engine w. Simul. Customer 360˚ Sales Force Support** Settlement Mgmt. International Trade One Single Invoice Predictive Q2Order & Delivery Performance * SAP C/4HANA* New Customer Mgmt., Embed. Service Core** Multi-Channel Interaction Center Quotation of Product Bundles * Geographical Framework Report & Repair Malfunction Asset Mgmt. for resource scheduling AI scenario NEW Business Emb. in S/4HANA Realtime Insights Integration Key Industry function embedded inside (e.g. Automotive, Consumer, Retail*, Mill, Prof. Services: Commercial Project Mgmt.…) SAP Analytics Cloud SAP Cloud Platform AIN Real- time Inventory & TM Overview Embedded EWM Embedded TM Advanced ATP Pred. Stock in Transit * Maintenance Overview * Re-architecture & improved functions (e.g. Chemicals, A&D, Oil Gas, Utilities**…) Details &restrictions… SAP C/4HANA* MANUFACTURING R&D FINANCE PROCUREMENT SALES SUPPLY CHAIN SERVICE CROSS Enterprise Contract Mgmt. GDPR Tools Responsibility Mgmt. * Co- Pilot/ Digital Assistant RPA scenarios** Additional ML scenarios* ASSET MGMT. INDUSTRIES QM Defect code prop.** DMC U- GL & Prediction * BRIM, incl Order Mgmt.** Orch. Financial Close** Group Reporting * Compliance Framework Cash App * GR/IR Monitor * Abnormal Liquidity ** IBP IPD Service Ticket Automation* * Pred. slow moving mat.** Int. Approval Workflow**

12. SAP S/4HANA – simple, modular, integrated and flexible end-to- end processes 40+ applications delivered on SAP Cloud Platform extending and substituting Core functions. Examples: SAP Intelligent Product Design SAP Cloud for Projects & Resource Management SAP Central Invoice Management - … Integration via Intelligent Enterprise Scenarios. Examples: S2P: Ariba-S/4HANA contract process H2R: Professional services integration H2R: ONE masterdata service build- in T2R: Travel Req. - Budget Integration S2P: Central Contract Integration S2P: Network process for Supply Chain Collaboration (planned) T2R: Work breakdown structure elements integration (planned - … Simplified Digital Core. Examples: 17m lines of ECC code removed* 31k tables removed (planned target by end of 2020) 11m lines of new code for S/4HANA innovations added since 01/2019* *: as of May 2020 13 © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

13. Embedded Intelligence Drives Cost Savings and Value Creation Example: Procure- to-Invoice 4 5 1 62 % Lower maverick spend resulting in significant purchasing savings and higher purchasing volumes Image recognition machine learning service powered by SAP Cloud Platform: 1 Technician identifies part which needs to be replaced. 2 Technician takes image. 3 4 5 Taken image is compared with catalog item images in cross- catalog search index to find matching patterns. Identified part is put in basket for purchase requisition. Purchase requisition is executed. 2 3 14 © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

14. © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 15 Imagine … 90+% Processes Automation Example: Invoice-to- Cash 1 2 Payment details are automatically extract from pdf and creates payment advices in SAP S/4HANA BOT look for incoming remittance advices and loading them into the SAP S/4HANA 6 Ted use CoPilot to find the collection worklist items 3 4 System ALERTS Ted that one of the invoice due was excluded from the payment After contact the customer and creates a dispute case, BOT automatically send out email confirmation with the dispute case # BOT will monitor the mailbox for any customer reply and attach the customer reply to the dispute case iRPA CoPilot Machine Learning iRPA Machine Learning Automatically match payments with open receivables and clear payments 5 iRPA SAP S/4HANA Persona – Accounts Receivable Manager Demo

15. © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 16 Top 10 Differentiators for SAP S/4HANA Cloud All within a vibrant, innovation- focused ecosystem 1 SAP has the broadest and deepest coverage of industry- specific capabilities, fed by co-innovation with industry leaders over many decades Broadest globalization strategy - product managers engaged in 60+ countries SAP is the synonym for ERP – now as native in-memory solution with AI and RPA on it’s way to define the new category of intelligent ERP Predictive capabilities across both planning and execution to steer your business with foresight End-to- End customer value management ensuring running processes at best- of- class and getting the anticipated value out of the software Supports hybrid (Cloud, AnyPremise) deployment model – customers chose appropriate option per business segment or process Flexible extension framework – either “in-app” or side- by- side powered by the SAP Cloud Platform SAP Activate – a prescriptive end- to-end methodology for rapid and successful deployments Best practice content for market standards and next- generation business processes 2 3 4 5 Open platform – for the integration into other applications and platforms using SAP Cloud Integration framework 6 7 8 9 10

16. SAP S/4HANA Value Proposition How does S/4HANA deliver incremental customer value?

17. SAP S/4HANA Value Proposition How does SAP S/4HANA add value to customer’s shareholders? E.g., reduce business and operations reporting costs while improving the analytics results New business model, new segments, better pricing, subscriptions, improved customer visibility & 360 Faster cycle, lower risk areas (prone to error and fraud), automation of manual tasks, standardizing & scaling More efficient use of assets; tear & wear, preemptive actions on maintenance and repairs, lower inventory, optimized cash Value Creation with S/4HANA (e.g., Enterprise Value and Stock Price) 70% faster to close books 50% faster consolidations 20% lower areas prone to errors / fraud 10% reduced time / errors in invoice processing 14% new revenue 50% higher collectible ARs 10% higher labor utilization 80% faster invoice processing time 2- 3% lower sales costs 20- 40% saved on audit costs 10- 30% reduced revenue leakage 5- 10% lower DSO 42% faster Service delivery 20- 30% reduced R&D expense 15% higher on- time delivery 5- 10% higher asset uptime Sales Volume Speed, comprehensiveness, reliability, agility Fixed assets such as Property, Plant & Equipment (PP&E) Liquid assets such as receivables and inventory Price Flexibility Cost of Goods Sold (COGS) Selling, General & Administrative (SG&A) Revenue / Growth Profitability Asset Efficiency Strategic Inorganic: M&A, divesti- tures 30% lower inventory 20% procurement savings 95% faster Material requirements planning 20% lower defects 84% process standardization 18 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

18. SAP Business Value Advisor ( www.impact.s4value.com ) 19 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

19. Re-imagined business models Products + Services - > as subscriptions Additive manufacturing Lot size of one IoT/sensor based managements of assets Re-imagined business processes Embedded business functions (WM, TM, MDG, ATP,..) New MRP, dynamic inventory, constrained based planning Intelligence through machine learning applications Industry solutions in the core Insight to action New UX – Fiori – Any Device In the moment, embedded analytics Self- service, multi- dimensional reporting Simplifications Streamlined data models & landscape simplification Better performance and scalability Flexible deployment options What are the New S/4HANA Innovations that differ from ECC? Watch Video Built for Scale, People & Innovation 4 3 2 1 20 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

20. 21 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Benefits are based on early adopters of SAP or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA. As each enterprise is at a different level of maturity, our recommendation is to work with you to determine the value proposition for your enterprise. Re-imagined business models Products + Services - > as subscriptions Additive manufacturing Lot size of one IoT/sensor based managements of assets Re-imagined business processes Embedded business functions (WM, TM, MDG, aATP,..) New MRP, dynamic inventory, constrained based planning Intelligence through machine learning applications Industry solutions in the core Insight to action New UX – Fiori – Any Device In the moment, embedded analytics Self- service, multi- dimensional reporting Simplifications Streamlined data models & landscape simplification Better performance and scalability Flexible deployment options What are the New SAP S/4HANA innovations and what is the value? 4 3 2 1 Predictable revenue and improved customer sat. Reduction of inventory, improved mfg. throughput Improved operational efficiencies at lower cost Improved uptime and asset utilization Business Benefits Improved customer satisfaction (10%- 20%) Reduced inventory levels (25%- 30%) Reduced logistics costs (10%- 20%) Reduction in days to close books (40%- 50%) Business Benefits Reduction in AP errors (5%- 6%) Improvement in sales productivity (10%- 15%) Reduction in reporting costs (5%- 10%) IT Benefits Reduced data footprint (~50%) Lower cost of ownership (~75%) Reduced FTEs to manage landscape (~40%) New innovations Business outcomes Business Benefits

21. 22 © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL Creating Sustainable Businesses Creates Results 14,600+ SAP S/4HANA Customers 7,400+ Live Customers 98% of the EuroStoxx companies are SAP S/4HANA customers.

22. 24 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Driving Business Value in Consumer Products Industry V a l u e L e v e r s Revenue Growth I m p a c t A r e a s P r i m a r y Va l u e D r i v e r s * * Sales volume, New business models Increase service revenue Reduce un- planned downtime or outages Reduce time to market for new products Increase revenue from new products/services Profitability COGS, SG&A, Pre- tax margin Reduce finance cost Reduce total manufacturing cost Reduce total logistics cost Reduce service and support cost Optimize research and development expense Reduce inventory carrying cost Reduce sales cost Improve sourcing savings on direct spend Improve supplier/external partner compliance Improve procurement FTE productivity Reduce overall supply chain planning cost Asset Efficiency Fixed assets (PP&E), Working capital Reduce days sales outstanding Reduce days in inventory Strategic Agility, Experience, Risk, Insights Improve on-time delivery performance Increase employee engagement Improve customer satisfaction Reduce days to close annual books Reduce revenue loss due to stock- outs Reduce customer churn Increase revenue from cross-sell/up- sell Increase revenue growth with better product personalization O t h e r K e y Va l u e D r i v e r s Improve days payable outstanding Increase sales forecast accuracy Increase first time resolution rate by field service technicians Increase financial forecast accuracy Improve overall equipment effectiveness

23. SAP S/4HANA Cloud gives us a market- leading ERP experience without the worry of a long deployment and high hardware and maintenance costs . It i s 2 5 the best of both worlds. Consumer Products Value Map: SAP Drives ‘Realized Value’ Mean absolute percentage error in demand planning reduced by 40% 30 % increase in efficiency of input raw material purchase Upto 40% fewer warranty returns anticipated 15% Reduction in inventory levels 10x faster month- end closing process, from 1 month to 3 days 100% of Colgate revenue managed using integrated S AP r s a o t e l u g t i i o c n s 22%–30% Faster time to market for new high- quality, innovative products 25% improvement in customer retention With the real- time insights provided by SAP S/4HANA , we’re able to react quickly to identify and resolve any issues in our supply chain, helping ensure that our products reach customers in optimal condition W h a t y o u r P e r e s a r e d o i n g “Enabled by SAP technology, we are transforming the battery storage industry, improving customer experiences, and © 2019 SA P g S E a o i r n a n i S n A P g af f s ili a i t g e c n o m i p f a i n c y. a A l l n r i g t ht s c r e o s e m rve d p . e ǀ t P i U t B i L v I C e advantage .” 2.5% decrease in macro logistics costs Alcohol Siberian Group digitalized its operations and uses data- driven decisions to respond faster to shifting consumer tastes. V a l u e L e v e r s Revenue Growth Profitability Asset Efficiency R e a l i z e d P r o o f P o i n t s f o r c o r e V a l u e D r i v e r s 90% more efficient inventory consumption thanks to autom atic updates for a large number of orders Optimize inventory levels by improving two processes: a streamlined production workflow, and scenario-planning activities Increase customer satisfaction , thanks to a more customized online experience with rich, relevant content

24. © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 26 Outcomes Traditional processes are not good enough any longer Example: Order to Delivery Process More Production Delays False promises Unclear status for customer Production Delays Higher inventory costs Sales Order Capture In- transit tracking No real- time updates Outbound delivery, transport planning, and dispatch Transportation process taking place in disparate systems with inefficient business partner collaboration Inventory management lacking visibility Increased safety buffers to make up for the lack of inventory visibility, locking up capital Purchase requisitioning and production No way of knowing if a reliable supplier could deliver a missing part/ material in time Scheduled material requirements planning (MRP) on rigid timelines No ability to rerun MRP during the day; material shortages not known until tomorrow, delaying production Manual sales order confirmation Delivery commitments based on outdated data, resulting in cancelled or delayed orders Challenges Ex- customer

25. © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 27 Intelligent Processes generate better Customer Experiences Example: Intelligent Order to Delivery Process SAP S/4HANA customers achieve 10%–15% reduction in revenue loss due to stock- outs 10%–15% reduction in order lead times 5x–25x increase in material postings Up to 10% reduction in manufacturing costs 25%- 30% reduction in inventory levels 10%- 12% reduction in total logistics cost >50% lower days sales outstanding 10%- 30% increase in on-time delivery 10%- 20% increase in customer satisfaction Intelligent technology outcomes Real- time product availability improves customer confidence Real- time inventory & rule- based allocation for optimized fulfillment Frequent MRP runs identifies any shortages to avoid products backlogs Identify the best supplier & minimize safe stock with just-in-time material availability Single warehousing platform for all operations enabling greater transparency & reduced working capital Integrated transportation management platform with intelligent insights to achieve customer delivery promise Transparent tracking of goods in transit and analysis of vehicle & sensor data to achieve real- time delivery status & delighted customers Sales Order Capture Key capabilities delivered Online order confirmation Live MRP Real- time purchase requisitioning and production Inventory management Outbound delivery, transport planning, and dispatch In-transit tracking in real time Delivery performance prediction Easily manage and track sales quotations, contracts, and orders traffic impact to machine learning model material shortages Demand- driven replenishment Intelligent material exception reporting Stock in transit arrival and delay prediction Intelligent KPI alerts and analysis Complete inventory transparency and accuracy matching Delivery delay prediction Monitor payments and manage payment advice Easily manage and monitor freight agreements Intelligent exception remediation proposals Real-time ingestion of IoT- based data streams Image-based ordering Feed time series Frequent MRP runs Demand- driven Early detection of Intelligently automated Delivery tracking Quotation conversion data on delivery throughout the day manufacturing slow- moving stock receivables matching and exception prediction issues such as quickly identify Contract consumption items Payables line items notifications prediction Smart procurement processes Cash discount at risk monitoring Goods and invoice receipt monitoring

26. © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 28 Imagine … Anytime financial close Discover your value: http://impact.s4value.com Automated order-to-cash 50% reduction to prepare a cost estimate 25% reduction in purchasing spend Intelligent System Timely insights Soft-close, on-the-fly financial reporting Real- time decision-making Benefits 75% reduction in days to close 25% reduction in G/L and financial closing costs Self-service approach to get financial reports Optimized Accounts Receivable Frictionless order processing Big reduction in costs, productivity improvement 15% decrease in processing time for invoices 10% reduction in global settlement schedule 10% reduction in days sales outstanding 25% reduction in A/R costs automated order-to- cash Companies who reduced their financial close time Configuration of a quote is faster and easier Accurate timely estimates for capital approval 20% Increased sales conversions Strong engagement with clients learning from their unique needs and preferences Intelligent product configuration via critical questions Machine Learning analyzes historical quotes by machine and client to determine the right questions Reduces technical sales and engineer time & effort Reduced Product costs Faster, more consistent adoption of global specifications More strategic vendor relationships Reduced costs of purchase management administration Increased quality of product Transform to central or orchestrated buying across your network of organizations Gain economies of scale, consistent quality and reduced internal purchase management costs Transparency and decision support for purchasers optimized quotations centralized purchasing

27. Challenges in Building the Case Why are customers still challenged to build a solid S/4HANA Business Case?

28. New Enterprise Core Small, Midsize , Large, Strategic Extended Enterprise Core Small, Midsize, Large, Strategic Intelligent Enterprise Transformation Small, Midsize, Large, Strategic Rapid simplification and consolidation Improved transactional and analytical performance Standardized best practices Business process optimization Enable new technologies (IoT, Blockchain, Machine Learning, etc.) Restructuring and/or M&A (Hybrid or two- tier architecture) New business models Optimal minimal customer aspiration Leveraging new technologies (part of new business processes and models) necessary for strong busine ss case! Redefining industries Roadmap to the Intelligent Enterprise Three MOVE types to become an Intelligent Enterprise 31 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

29. The three keys to success to ensure S/4HANA is relevant to your strategy Identify strategic driver & Answer the ‘Why CHANGE?’ question Focus on rapid time to value at minimal risk & Answer the ‘Why SAP & Partner’ question Identify strategic needs & Answer the ‘Why Now’ question 32 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

30. Executives Manager Staff Assist Customers in Answering their ‘why’ questions Ensuring S/4HANA relevance to a customer’s business & IT strategy WHY Change? WHY Now? WHY SAP & Partner? Decision Awareness Investigation Interest Education Initiative Project Recommendation Strategy What is our strategic objective? What strategic needs prevent realization of that objective? How to accelerate time- to- value and reduce risk? Evaluation 33 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

31. SAP Offers Customers Choice of HOW they MOVE to S/4HANA What are the choices that must be made? Business Objectives Business Process Optimization ERP Rapid Modernization Business Model Innovation What are the business goals of my project? Transition Paths Hybrid (“Selective Data Transition”) System Conversion (“Brownfield”) New Implementation (“Greenfield”) Do I want to extract even more return on my investment, or do I want the latest best practices? Destination (Application) S/4HANA (On premise) S/4HANA Cloud (Cloud) What are my IT preferences? (best practices, customization, update frequency, …) Destination (Infrastructure) SAP Data Center (SAP Digital Core Cloud) Customer (On- premise, hosted) Hyperscaler (MS Azure, AWS, GCP) Where is the best place to deploy? 34 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

32. Business Objectives What are the business goals of my project? Transition Paths Do I want to extract even more return on my investment, or do I want the latest best practices? Destination (Application) What are my IT preferences? (best practices, customization, update frequency, …) Business Model New Implementation Hyperscaler Innovation (“Greenfield”) S/4HANA Cloud (MS Azure, AWS, GCP) (Cloud) Business Process Hybrid SAP Data Center Optimization (“Selective Data Transition”) S/4HANA (SAP Digital Core Cloud) (On premise) ERP Rapid System Conversion Customer Modernization (“Brownfield”) (On- premise, hosted) Destination (Infrastructure) Where is the best place to deploy? Do not discuss to many CHOICES OR HOW without DEFINING WHY HOW is about COST & TIME … WHY is about BUSINESS IMPACT 35 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC SAP Offers Customers Choice of HOW they MOVE to S/4HANA What are the choices that must be made?

33. Transforming Value Management How is SAP transforming the way we help customers manage value?

34. ONE SAP Customer Engagement Model Outcome-Driven: Faster Time-to-Value & Innovation Adoption STEP- BY- STEP business innovation adoption IDENTIFY high-value business outcomes Customer Vision-to-Value Journey Plan the Path Forward Align on Vision & Strategy Build the Case Deliver Business Value 37 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

35. Vision: Automated Business Performance Management Customer success assurance through automated business outcomes Automate customer success Accelerate time- to-value & innovation adoption Industry Model Company & E2E process centric Simplification via gamification Automation, digital assistant, prediction & AI Functional Usage & Step- by- Step driven Customer HR Manufacturing Supply Chain Procurement Finance Database & Data Management Application Development & Integration Analytics Intelligent Technologies Experience Operations Customer Employee Product Brand X DATA O DATA Discovery Realization Intelligence Optimization 38 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

36. Operational Procurement Your usage PO related metric Process KPI Posted invoices without ref. to a PO 22331 No. of PR Items w/o PO & Critical Delivery Date 3329 HR Proc Sales Fin Procurement Solutions Status Sourcing & Contract mgmt. Live Operational Procurement Low Usage Central Procurement Not Live Benchmarking the insights Operational Procurement Your improved usage PO related metric Process KPI Posted invoices without ref. to a PO 5500 No. of PR Items w/o PO & Critical Delivery Date 652 Improving business outcomes Operational Procurement Your usage Industry peers / best in class PO related metric Process KPI Posted invoices without ref. to a PO 22331 4400 No. of PR Items w/o PO & Critical Delivery Date 3329 527 Continuous Value Mgmt. Applying recommended actions to reduce Services & IT KPI and improve business outcomes Recommended Innovation Purchase Order Confirmations (48K) Prediction of Delivery Date for Purchase Order Items (3FY) Vision: Automated Business Performance Management 39 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Customer success assurance through automated business outcomes Analyzing current business performance

37. 40 Roadmap: Customer- Centric Value Management Customer success assurance through automated business outcomes Market Impact Phase 1 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Customer Value 2020 2020- 22* 2022+* Automated Business Performance Management (Model Company Based) Continous Value Management (SAP S/4HANA+) ‚Assisted‘ Business Performance Management (e2e Process / Model Company) Phase 2 Phase 3 *Not Committed

38. SAP S/4HANA MOVEMENT PROGRAM Drive adoption of SAP S/4HANA in ERP Installed Base S/4HANA MOVEMENT Program is a Cross- board initiative to answer the customers most critical questions: Why would it be beneficial to “MOVE” now? Can SAP S/4HANA address my business and IT requirements? How does SAP optimize my TCI / TCO? Is there sufficient capacity on the market to manage all aspects of the transformation? Main activities : All program activities are linked to the questions above: Continue to enhance SAP S/4HANA product attractiveness Optimize Tools for the entire customer journey Optimize & Scale customer engagement frameworks Engage & educate the Ecosystem Objective: Drive Adoption up to 90% in ERP installed base 41 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

39. A comprehensive set of tools, content and services from SAP to build customer’s your value story & business case 2. Build the Case D – esign your future solution roadmap Shape your future landscape and build your own transformation road map SAP Transformation Navigator Learn more » – Benchmark against peers and build your value case Benchmark business KPIs against peers, assess your opportunity to rethink your business processes, and build your value case SAP Value Lifecycle Management Learn more » 3. Plan the Path Forward 4. Deliver Business Value – E v alu a te your project complexity Check the readiness of multiple aspects of your SAP ERP 6.x system to migrate to SAP S/4HANA SAP Readiness Check for SAP S/4HANA Learn more » 1. Vision & Strategy – C o n t inuously optimize and innovate Optimize and use better your SAP S/4HANA, and upgrade to the latest release SAP Innovation and Optimization Pathfinder Learn more » U – nderstand the SAP product road map Find out which features and innovations are planned to be delivered with future releases and plan your transition accordingly NEW SAP Road Map Explorer Learn more » ** service or support offering * pilot starts July 2020 T – eam discovery of solutions, innovations & potential value SAP S/4HANA Virtual Board Game Learn more » P – lan and execute your project Accelerate and secure the planning and execution of your transformation SAP Enterprise Support** ( link ) SAP Model Company** ( link ) SAP Value Assurance** ( link ) I – dentify opportunities to create incremental value Find out how SAP S/4HANA and the intelligent enterprise supports your business goals SAP Business Scenario Recommendations + Spotlight * + Value Mining Service** Learn more » I – dentify value of S/4HANA as a first step in a Intelligent Enterprise journey Assets and Services to explore and shape the company’s digital vision : Industry Customer Journeys (on CEP) Customer outside-in PoV / move the needle (Fast Track to S/4HANA) 42 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

40. 43 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC A comprehensive set of RELEVANT CUSTOMER QUESTIONS AND MEANS TO ACCELERATE ANSWERS along your customer’s journey 2. Build the Case 3. Plan the Path Forward 1. Vision & Strategy 4. Deliver Business Value 1. How can I help present SAP’s VISION/IT STRATEGY & VISION for my customer’s Industry(s)? 2. How can I understand my customer's current situation, pain points and overall strategy ? How can I match SAP's offerings to my customer's current pain-points and overall strategy? How can I showcase the TOP reasons for which businesses MOVE to S/4HANA? 5. How can help the customers visualize KEY DECISIONS that must be made for the transition? 6. How are customers Industry/LoB experiencing benefits with S/4HANA? in my tangible What programs does SAP offer to hand hold a customer & provide get expert guidance to support customer’s decision- making? How can I demonstrate INCREMENTAL S/4HANA benefits as compared to ECC? How can I ENGAGE & SECURE BUY- IN for a Customer’s LoBs for discovering benefit from moving to SAP S/4HANA (including P ROCESS’ IMPROVEMENT & AUTOMATION)? How can I help the customer perform a COLLABORATIVE BUSINESS SCOPE ASSESSMENT? How can SAP help me do a quick value assessment to validate assumptions, baseline processes maturity & build a SOLID BUSINESS CASE for this digital transformation? 1. Where can I help the customer quickly identify the BEST PRACTICE PROCESS SCOPE items? 2. Where can I find road maps for my customer’s Industry/Processes/Products & configure their UNIQUE SAP ROADMAP? 3. Where can I find all relevant content to help my customer realize the maximum value from FIORI? 4. How can I help preparing a TRANSITION PLAN for a New Implementation? What are key Programs/Service offerings that can make my customer’s journey successful? How does SAP support the safe guarding ( (processes, accelerators, guides ) during my customer’s journey? What are the key PRE- DEFINED IMPL. STRUCTURE and services that meet my specific needs & desired outcomes in SAP PRIMED TRANSITIONS ? What key PRE- DEFINED services can I propose that meet customer’s specific needs in SAP PRIMED TRANSITIONS ? 5. What key Partner and SAP services/accelerators can I propose for PARTNER PRIMED TRANSITIONS, from engagement though delivery? 6. What SERVICES/TOOLS can I propose to ensure optimal adoption and coverage of FIORI (UX) Zero/Minimal applications, Downtime , Near WRICEF /Custom Code remediation, Data Migration capabilities, Optimal system Integration ? 7. How can I keep providing recommendations on innovations, business process improvements, IT optimization potentials?

41. A comprehensive set of RELEVANT CUSTOMER QUESTIONS AND MEANS TO ACCELERATE ANSWERS along your customer’s journey 2. Build the Case 3. Plan the Path Forward 1. Vision & Strategy 4. Deliver Business Value 1. How can I help present SAP’s VISION/IT STRATEGY & VISION for my customer’s Industry(s)? 2. How can I understand my customer's current situation, pain points and overall strategy ? How can I match SAP's offerings to my customer's current pain-points and overall strategy? How can I showcase the TOP reasons for which businesses MOVE to S/4HANA? 5. How can help the customers visualize KEY DECISIONS that must be made for the transition? How are customers in my Industry/LoB experiencing tangible benefits with S/4HANA? S/4HANA Business Value Advisor ( LI NK ) Customer Story Finder (LINK) What programs does SAP offer to hand hold a customer & provide get expert guidance to support customer’s decision- making? How can I demonstrate INCREMENTAL S/4HANA benefits as compared to ECC? How can I ENGAGE & SECURE BUY- IN for a Customer’s LoBs for discovering benefit from moving to SAP S/4HANA (including P ROCESS’ IMPROVEMENT & AUTOMATION)? How can I help the customer perform a COLLABORATIVE BUSINESS SCOPE ASSESSMENT? How can SAP help me do a quick value assessment to validate assumptions, baseline processes maturity & build a SOLID BUSINESS CASE for this digital transformation? SAP Value Lifecycle Manager: Next-Generation Benchmarking SAP Value Lifecycle Manager: Guided Business Case 1. Where can I help the customer quickly identify the BEST PRACTICE PROCESS SCOPE items? 2. Where can I find road maps for my customer’s Industry/Processes/Products & configure their UNIQUE SAP ROADMAP? 3. Where can I find all relevant content to help my customer realize the maximum value from FIORI? 4 . How can I help preparing a TRANSITION PLAN for a New Implementation? SAP Transition Planning for New Implementation SAP Migration Planning Workshop SAP Data Migration Architecture What are key Programs/Service offerings that can make my customer’s journey successful? Partner Conversion Factories SAP- Qualified Partner-Packed Solutions Value Assurance packages Integrated Delivery Framework How does SAP support the safe guarding ( (processes, accelerators, guides ) during my customer’s journey? What are the key PRE- DEFINED IMPL. STRUCTURE and services that meet my specific needs & desired outcomes in What key PRE- DEFINED services can I propose that meet customer’s specific needs in SAP PRIMED TRANSITIONS ? 5. What key Partner and SAP services/accelerators can I propose for PARTNER PRIMED TRANSITIONS, from engagement though delivery? 6. What SERVICES/TOOLS can I propose to ensure optimal adoption and coverage of FIORI (UX) applications, Near Zero/Minimal Downtime , WRICEF /Custom Code remediation, Data Migration capabilities, Optimal system Integration ? 44 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

42. SAP Customer Engagement Platform – ONE SAP Value Platform 45 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

43. Operational perspective Company perspective Industry perspective Single LOB perspective Socio-economic perspective + + Only “as is”” most pragmatic current challenges such “getting through the day” Mostly “as is” i.e. current company performance but is possible to highlight “to be” strategies” and SAP S/4HANA role (e.g., growth of services for a wholesaler) Well-balanced “as is” and “to be” (but emphasis can be adjusted based on the customer needs) 46 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Almost always “as is” Almost always “to be” Which strategy Key points One does not exclude the other and can be used to complement each other These can be used to prepare S/4HANA business case. Align on Vision & Strategy and lead customer’s S/4HANA Buying Cycle Strategic alignment approaches to make S/4HANA relevant to customer’s strategy

44. Short shelf life Very quick order turnaround time Same day order … … … Staggered 7- week growth cycle to ensure continuous harvesting OPERATIONAL EXAMPLE : How does SAP S/4HANA bring value to our customers? Example: One day of the life of a General Manager B u K s i e n y e s p s a i a n t p a o g i n l a t s nce Grocery Retailers Restaurants, Corporate catering Customers Key products Fresh or Canned Freight fleet network Farms Processing & packing plants Sourcing Horse manure Spores Seasonal workers Palettes, boxes Trays Plastic cover Labels … 47 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

45. Do we have enough fresh mushrooms today? If not, where can we source the balance ? Are there other, more urgent, customer orders ? How much money are we making on it? OPERATIONAL EXAMPLE : At 8am, a huge Walmart order comes in Delivery tonight by 5pm 6 oz trays of Fresh Sliced Portabella Mushrooms 16 oz trays of sliced white mushrooms 2 trucks Two different types of freshly produced mushrooms, all packed into Walmart-approved trays with clear plastic wrap 2 different stores 1 truck 3 rd store Order details: 3 freight trucks (~ 16 tones) Prioritize all customer orders based on strategic and financial criteria e.g., priority / urgency / profitability Estimate bottom- line impact of this particular order Commit to this order (or not) based on your capacity Subcontract if possible / necessary Required business capabilities Reduce days in inventory by leveraging real time information regarding inventory availability to shortening replenishment cycles and to respond to demand on a frequent basis Reduce order fulfillment lead time by using real-time information on inventory availability, and projected availability, to provide accurate order commitment dates Value Drivers 9 hours to delivery 48 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

46. Do we have enough fresh mushrooms today? If not, where can we source the balance ? Are there other, more urgent, customer orders ? How much money are we making on it? OPERATIONAL EXAMPLE: At 8am, a huge Walmart order comes in Delivery tonight by 5pm 6 oz trays of Fresh Sliced Portabella mushrooms 16 oz trays of sliced white mushrooms 2 trucks Two different types of freshly produced mushrooms, all packed into Walmart-approved trays with clear plastic wrap 2 different stores 1 truck 3 rd store Order details: 3 freight trucks (~ 16 tones) 9 hours to delivery First come first serve Product Allocation & Prioritization Customer-requested order quantities Availability check Order commitment dates Back Order Processing Product Allocations Alternative Based Confirmations Release for Delivery Impact Simulation / Visualization SAP S/4HANA Advanced Available to Promise ECC SAP S/4HANA 49 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

47. OPERATIONAL EXAMPLE: How AATP works Follow the calculations to see that S/4HANA AATP leaves no unfulfilled order Other Customers ECC: first come / first serve SO sequence # requested # remaining SAP APO: allocation strategy # allocated # requested # remaining SAP S/4HANA AATP: allocate and prioritize # allocated # requested # remaining Your designated priority Largest chains 1 7 9 10 20 15 90 5 - 20 40 10 20 15 30 10 - 5 40 4 5 6 10 5 15 45 40 25 30 10 5 15 20 15 30 10 5 15 - 5 - 15 25 15 10 Final 100 units of Any Product Impact on your key customers: your competition sells what you cannot…vs. your competition cannot sell 2 3 8 15 20 10 75 55 - 5 30 15 20 10 15 - 5 - 15 30 10 30 20 10 15 [phone] Large Customers +5 +10 50 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

48. COMPANY EXAMPLE: an ongoing business case – the starting point €8bn €20bn €3bn Cost of Sales = €11bn Revenue Gross Profit €5bn €1bn €9bn €3bn Procurement Production Marketing Selling Distribution EBIT R&D Administrative 2019 performance Adhesives 47% Laundry / home care 33% B eauty 19% - 2% 3.7% 0.6% - 7% 1.3% 6.6% €0.5bn 3.1% - 2% Scope of this document: “as is” strategy Selected S/4HANA capabilities New process design and enablement by S/4HANA Value realized by other customers Outside scope: “to be” strategy 51 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Subscriptions, services, etc. Direct / online sales and your response to structural shift in retail New product / market diversifications including inorganic (e.g., M&A for Adhesives) + divestitures (e.g., sub- scale brands) Etc… Goals │ ~3% organic sales growth │ FCF expansion │ cost discipline │

49. COMPANY EXAMPLE: an ongoing business case – the starting point Where SAP S/4HANA can be relevant to your “as is” production? For discussion Value: S/4HANA innovation + process optimization €8bn €20bn €3bn Revenue €5bn €0.5bn €1bn €3bn Procurement 2019 performance Process order Live MRP Inbound delivery Requisition Production / Warehouse inventory mgmt Deliver goods cial mgmt ARs, collect Sales order capture Online order confirmation Live MRP Real- time purchase requisitioning and production Inventory management Outbound delivery, transport planning, and dispatch 10%–15% reduction in revenue loss d/t stock- out 10%–15% reduction in order lead time 5x–15x increase in on- time fulfillment 10%–12% reduction in total logistics cost >50% lower days sales outstanding on- time delivery 10%–20% increase in customer satisfaction Indicative margin improvement: 10% New S/4HANA Implementation Toyota in Pakistan Opening of the market, h i g he r C c o o m m m p e e r t i - tion Critical to lower defect rate Current challenges with long inbound logistics and m anuf a ct u € r 9 i n b g n c y cle Cost of Sales = • € 9 1 5 1 % b n f ast e r material requirements planning: process took four hours and operations had to be suspended. With S/4HANA, we run MRP in 12 minutes while continuing to Pr o r d u u n c t h t i e o b n u s ine s s G w r i t o h s o u s t i nte rr up t i o M n arketing 20% fewer d e P f e r c o t f s i t p e r unit k S e e e p l l i I n n d g u s from stopping its production line, the cost of which was almost $10,000 per m i n D u t i e s i t n r i l b o u s t t io n Plan: demand- t p o r - o p d r u o c d t u i o c n ti on , budgeting 10% higher sales order accuracy S/4HANA MRP R&D • S t a A n d d a m r d i i n z a i s t i o t r n a t o i f v t e he production with pro c ure m E e B n t IT Real- time and online m o n I n i t o - t r r i a n n g s o i t f t p r a r o c k d i u n c g t i o n and orde 1 r s %–30% increase in Operational and a c c ounti i n n g r v e i a s l i b t i ili t m y e & compliance Alcohol Water Financial treatm r e e n p t ortin L g aboratory Procure Blending Feed clean containers Filtration & production Bottling Up to 10% reduction in p P u a r c l e h t t a e s e mgmt. costs forming & s 2 h 5 i p % m e – n 3 t 0% reduction in inventory levels 52 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

50. Business Scenario Recommendations SAP S/4HANA Value Mining Service Root cause analysis down to the line item Continuous monitoring Payable service SAP S/4HANA Innovation Service LoB specific innovation Industry specific situation COVID- 19 innovation Intelligent Enterprise BSR on Spotlight identify areas with automation potential Free: understand usage patterns (incl. custom code) Payable: front end usage behaviour mining SAP S/4HANA Business Scenario Recommendation Report Business Scenario Recommendations sets the foundational discussion – What is next? 53 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

51. Business Scenario Recommendations SAP S/4HANA Value Mining Service Root cause analysis down to the line item Continuous monitoring Payable service SAP S/4HANA Innovation Service • LoB specific innovation • Industry specific situation • COVID- 19 innovation • Intelligent Enterprise BSR on Spotlight identify areas with automation potential • Free: understand usage patterns (incl. custom code) • Payable: front end usage behaviour mining SAP S/4HANA Business Scenario Recommendation Report Business Scenario Recommendations sets the foundational discussion – What is next? 54 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

52. Visualization of Cause & Effect of the PPIs on Value Drivers Example Dependency Diagram : Reduce finance costs Navigate from the global overview in the Dependency Diagram to Business Process Analytics for deep- dive root cause analysis of individual PPIs. 55 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

53. Root Cause Analysis of PPIs with Business Process Analytics Use e.g. the (Advanced) Benchmarking analysis type for a comparison across organizational units or document types to identify potential improvement areas and deepen the root cause analysis. Split the data into operationally relevant vs. old & potentially obsolete data with the Age Analysis analysis type and the provided visualization capabilities. 56 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

54. Progress Management Board Continuously monitor process performance improvement and compare against baseline 57 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

55. Business Scenario Recommendations SAP S/4HANA Value Mining Service • Root cause analysis down to the line item • Continuous monitoring • Payable service SAP S/4HANA Innovation Service • LoB specific innovation • Industry specific situation • COVID- 19 innovation • Intelligent Enterprise BSR on Spotlight identify areas with automation potential Free: understand usage patterns (incl. custom code) Payable: front end usage behaviour mining SAP S/4HANA Business Scenario Recommendation Report Business Scenario Recommendations sets the foundational discussion – What is next? 59 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

56. Spotlight’s Additional Capabilities SAP S/4HANA conformity Usage of custom and partner code Usage analysis and recommendations 60 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

57. I. Track User Behavior III. Automate Track user behavior in SAP UIs (SAP GUI, WebGui, Fiori) Understand user behavior & analyze potential business impact Create data- driven actions as automation with RPA bots An End-to- End Approach from User Clicks to Automation Pilot UI Subject to change II. Analyze Patterns 61 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

58. I. Track User Behavior III. Automate An End-to- End Approach from User Clicks to Automation Pilot UI Subject to change II. Analyze Patterns Thickness of line indicates frequency of path Business Object and number of shown process variants – e.g. three most frequent paths for Sales Orders Time spent by users for displayed paths out of overall time spent on Sales Orders Number of objects following displayed paths out of overall number of tracked Sales Orders Process step, associated transaction and crossings Activity details on hover 62 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Track user behavior in SAP UIs (SAP GUI, WebGui, Fiori) Understand user behavior & analyze potential business impact Create data- driven actions as automation with RPA bots

59. SAP S/4HANA Cards Game Define scope & value (by phase) How to play: Gamification steps Pick a capability Discuss relevancy Identify value drivers Build outputs © 2020 SAP SE or an SAP affiliate company. All rights reserved. Customer 67

60. Welcome to a SAP S/4HANA Virtual Board Game Click any of the buttons to start your Business Value or Solution discovery game Play now! SAP S/4HANA Cards Game Finance Sales Supply Chain Manufacturing ISM Asset Management Procurement Business User View © 2020 SAP SE or an SAP affiliate company. All rights reserved. Customer 68 Line of Business User View For other game- kits, visit Game JAM Page LINK Expert help: Outside- in Business Analysis Report Capability View COGS Value Driver View SG&A Value Driver View Capability View Pre- Tax Margin Value Driver View Capability View Working Capital Value Driver View Capability View Capability View Revenue Value Driver View Customer Case Study Challenge

61. Business Areas Discuss relevancy Identify value drivers Build innovation map, scoreboard, & value maps Instructions Pick a capability Roll the dice Go sequential Choose randomly Player scoreboard Value calculator Innovation roadmap Team scoreboard Resources Coverage chart: Line of Business Coverage chart: Business area Source & Contract Management Invoice Management Operational Procurement Supplier Management Procurement Analytics Central Procurement Return to welcome screen Level 1 Badges Total points 40 S/4HANA Procurement Customer Proof- Points Value calculator Team scoreboard Locked* Coverage chart: Coverage chart: Locked* Business area Line of Business Locked * Locked* “In every Job that must be done , there is an element of Fun. You find the fun and - SNAP - the job's a Game" Locked* Locked* = Unlock badges & game outputs in level 2, by scoring 100 points as a team Certificate of Achievement 70 © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL

62. Instructions Player reads cards aloud Players discuss: Business relevancy Value drivers Implementation timeline Solution capability owner Place relevant solution on the innovation roadmap Update player scoreboard Quick links More information: Solution Capability details Delta ERP to S/4HANA Innovation roadmap Return to board 71 © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL

63. © 2020 SAP SE or an SAP affiliate company. All rights reserved. Confidential limited to customer. 74 SAP Innovation and Optimization Pathfinder 2.0 Sample Customer System: PRD OVERVIEW FINANCE SOURCING AND PROCUREMENT SALES & SERVICE SUPPLY CHAIN MANUFACTURING ASSET MANAGEMENT IMPROVE BUSINESS PROCESSES OPTIMIZE I.T. NEXT STEPS

64. Covers 10 LoBs 30+ KPIs 40+ Best Practices Highlights Covers important solution capabilities of SAP S/4HANA Clearly differentiates SAP ECC and SAP S/4HANA capabilities — shown as a clear maturity gap Can be leveraged to subsequently build a business case focusing on achieving monetary and strategic benefits For participation visit valuemanagement.sap.com or email at [email protected] Assess performance and process maturity Baseline your current performance and maturity on core ERP processes against your industry peers, and make your future aspirations tangible using self-service offering on SAP Value Lifecycle Manager 76 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC NEW SAP Value Lifecycle Manager: S/4HANA Benchmarking Assessment

65. Business case to help articulate value of SAP solutions by linking monetary benefits with product capabilities. Collaborators Value community consisting of representation from Global IVA, Regional/ LoB IVAs, and S/4HANA Solution Management to build the requirement of the tool and lead the testing and enablement initiatives Content Build with 3-in-a- box governance model of Global IVA, Industry Roadmap, Solution Management, Regional/ LoB IVA, IBU to ensure high quality content across tools Create a business case with few clicks Option to build business case by Process or SAP Product Covers 12 Line of Business, 27 Industries, and top GTM products Supports S/4HANA business cases for “any premise” or cloud deployments to support MOVE program In-built integration with other with content repository (i.e. Solaris) and product recommendation engine (i.e. Polaris ) to leverage one common taxonomy NEW SAP Value Lifecycle Manager: Guided Business Case - Overview 77 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Access Here!

66. Select Line of Business Select applicable Value Drivers Enter basic information Access Benefits Project Cost and Expenses Project Economics SAP Guided Business Case - Process 78 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

67. Q&A and Feedback Where do you need help managing value?

68. Dmitry Melnik Global Vice President, SAP S/4HANA SAP S/4HANA business, value, customer & solution expert Graduate of Harvard Law School and Wharton School of Business Pre- SAP: McKinsey and Goldman Sachs Previous SAP roles: sales and sales ops in NA and EMEA, Rapid Deployment Solutions, OEM, HANA Enterprise Cloud, strategic portfolio and pricing [email protected] Special offer only for the EAB S/4HANA Collaboration Group Customers* S/4HANA Strategic Consultant to support building your case * NOTE: First- come, first- serve basis, and dependent on agreement with account team

69. Request S/4HANA Virtual Cards Game Workshop ( LINK ) 81 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

70. HOW CAN I LEARN MORE? WWW.SAP.COM/JOINTHEMOVEMENT

71. 83 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

72. Thank you. Contact information: William ‘Bill’ Bowers GVP S/4HANA GTM & Solutions Management Customer Value & Success Phone [phone] [email protected]

73. APPENDIX

74. Differentiated Business Processes (Delta SAP ECC vs. SAP S/4HANA by Solution Area/Capability) available in ECC NOT available in ECC 86 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

75. Differentiated Business Processes (Delta SAP ECC vs. SAP S/4HANA by Solution Area/Capability) available in ECC NOT available in ECC 87 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

76. Differentiated Business Processes Product availability check Back order processing Product allocation Alternative based confirmation Release for delivery Capabilities Supply & demand (sales orders/ stock transport orders) consideration Segment customers (Win- Gain–Redistribute – Fill – Lose) Time dependent and hierarch. assignments to product/plant Best availability plant / location Fiori- based interactive changes Special stock and batches Exception handling Import/export from/to external systems Simple configuration Impact simulation Fast processing and visualization with Fiori Filter and restrict product / location Display & analyze Substitution strategy ranking Direct navigation to Sales Order Impact on GM re order from Walmart vs. other customers Take shelf life into consideration Commit firmly with solid understanding of the implications Determine shortage[s] to cover Improve order fill rate for Walmart and other customers Expediently analyze impact of delaying other orders Capabilities translate into Process improvements Strategic freight mgmt. Order mgmt. Transpor-tation planning Transportation execution Freight costing & settlement Analytics & reporting Capabilities Procurement Negotiations Schedule & capacity mgmt. Predictive capability Integration with O2C/P2P Schedule mgmt. Order life cycle Manual and automated dispatch Palette-building / load planning Visualization WM integration Logistics execution E2E tracking & monitoring Freight agreement mgmt. Charge and tariff mgmt. Dashboards with pre- set cost analytics Carrier booking & collaboration Generate dynamically optimized routes Dangerous goods Driver mgmt. Document print Compliance Integration w S/4HANA Collaboration portal for logistics BPs Impact on GM re order from Walmart vs. other customers Save on freight using pre- set algorithms Optimize loading / routes Select the most cost-effective modality Improve cargo handling Increase accuracy of invoicing / billing / cost calculation Faster and more comprehensive decisions 88 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC

77. 89 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Why change? Why now? Why SAP & Partner? … is the starting point for your journey to SAP S/4HANA What is the Focus: The move to SAP S/4HANA is a strategic business decision, not only an IT- project. We need to answer the “Why’s”: What is unique about it? It’s initiated with an outside- in perspective , to offer you a business value focused Point- of- view, that helps your start Embedded in the SAP S/4HANA Movement Program SAP S/4HANA Value Starter Program As an outcome of this week you will be able to: … build an initial benefit case for specific business scope … understand SAP solution capabilities , value drivers and business impact of that scope … understand high- level project & transformation plan well enough to define initial cost estimates needed for business case 1 st 2 nd 3 rd With the help of a question- based approach, we identify valuable and custom- tailored assets to guide you throughout your journey How much is the effort? With active maintenance it’s free- of-charge All materials & sessions are prepared by SAP If you are interested, we send you a Welcome Package with first specific insights Value Starter Engagement in a 1-week engagement SAP combines the results from the Welcome Package with the insights from remotely offered workshop sessions (5x 1-to- n, 5x 1-to- 1)

78. 90 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Talk to an Expert Sessions Customer- Specific Analysis & Content 360 Analysis (internal/external) Point-of- View document Product Roadmaps (in SAP Transformation Navigator) Value Assessments (in SAP Value Lifecycle Manager) SAP S/4HANA Value Starter Our Customer/Partner Value Proposition Providing a Strong Foundation to Simplify and Accelerate … and all we ask is for our customers valuable time to understand how best to leverage the foundation ... SAP S/4HANA Value Starter e- mail to answer all questions Substantial SAP Investments Guided 1- to- 1 engagement & support Digital Customer Journey Experience – Question-Based Approach Relevant SAP S/4HANA customer references & proof-points SAP S/4HANA Simulation Experience