Template RISE with SAP Door Opener PoV Retail_v10.pptx

Template RISE with SAP Door Opener PoV Retail presentation with 40 slides business transformation as a service

1. Comments The purpose of this executive-level deck is high-level positioning of RISE with SAP from an industry lens. Speaker’s Name, SAP Month 00, 2021 PUBLIC © 2021 SAP SE or an SAP affiliate company. All rights reserved. I PUBLIC RISE with SAP for Retail Accelerating Digitalization

2. Comments Main reasons why companies start digital transformations.  Adjust for customer priorities as needed. The retail industry is under scrutiny from both consumers and regulators. At the same time, retailers are in a powerful position to enforce sustainability principles across their supply base. Leaders are thinking about environmental and social governance standards not as problems but as solutions to achieve more efficient and less wasteful practices. Sustainability paradigm shift New digital-first competitors and innovative business models continue to emerge. Retailers must embrace disruption and vertical integration, as they are reshaping the traditional retail landscape markets and revenues. Disruptive market entrants 2 PUBLIC 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ With so much choice at their fingertips, consumers expect more than ever before; ultra-convenience, flawless service and seamless experiences are now foundational to brand loyalty. Leading brands have been raising the bar for years, and now consumers have come to expect these standards everywhere. Consumers demanding new levels of value The next generation of customers is looking for brands that align with their values, and they are willing to “walk the talk.” Commitment to a purpose has become as important as a brand’s digital experience. The future of retail is about thoughtful curation of products and brands that align with their mission and provide for a trusted engagement. Purpose-driven retail Macroeconomic and emerging digital trends are triggering the need for retailers to embark on digital transformation journeys, …

3. … allowing them to achieve strategic priorities that require end-to-end connectivity across the enterprise value chain, ... Strategic View Enterprise Transformation Customer centricity Segment of one Digital supply chain Redefined stores New business models Value Chain View Omnichannel customer experience Core End to End Processes Source to pay Idea to market Omnichannel marketing Customer-centric merchandising Procurement excellence Digital supply chain Plan to fulfill Order to cash Comments Show our understanding of the industry. Growth / market share Shareholders / market capitalization Sustainability / strategic longevity Conversion rate and cost per conversion New customers and cost of acquisition Sales growth New product revenue Process efficiency in retail operations and fulfillment Margin and sales Inventory turnover and accuracy Delivery and shipment times Logistical costs and wastage Promo conversion rate Sales per square foot Employee efficiency and customer service quality Average basket size Product quality, pricing, and margin Supplier performance

4. … and become intelligent retailers that lead the way Strategic View Enterprise Transformation Customer centricity Segment of one Digital supply chain Redefined stores New business models Value Chain View Omnichannel customer experience Omnichannel marketing Customer-centric merchandising Procurement excellence Digital supply chain Next Practices Vertical Edge Best Practices The Intelligent Enterprise Predictive planning and inventory orchestration Product customization at scale Circular economy processes Experiential retail Outcome-based selling Omnichannel planning and fulfillment Comments Show how becoming an intelligent enterprise is the way for the future readiness.

5. This is evident in [CUSTOMER’s NAME] priorities Comments Utilize capital market days, quarterly releases, publicly available information and account team knowledge to determine the strategic imperatives of a customer. 5 PUBLIC © 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ Priority I Key topics for the customer A B C E F G Priority II Key topics for the customer A B C E F G Priority III Key topics for the customer A B C E F G <CUSTOMER ‘s NAME > Priorities

6. Skilled experts are hard to secure Transformation path is not clear Transformations require high upfront costs Long time-to-value Too many hands to shake & parties to hold accountable Diminishing support over time to help realize anticipated value Multiple and varying SLAs for application stack components Creating the value case for change with outcome driven process harmonization Customer acting as the orchestrator, putting solution stack layers together However, organizations are faced with multi-faceted challenges that prohibit their ability to fully unlock the value of the Intelligent Enterprise Comments Adjust as per customer challenges. Managing workforce change management during the transformation process Providing the right tools, resources and experience to improve employee productivity

7. RISE with SAP is introduced to support [CUSTOMER’s NAME] business and digital transformation ambitions to unlock two sources of value + Mitigate Risk, Reduce IT Cost and Accelerate Time to Value with Cloud Delivery Capabilities Capabilities that maximize transformation readiness, simplify consumption through “as a service experience”, ensure operational resilience and reduce overall TCO B Enable Value Creation with Differentiating Business Capabilities Industry best and next practices that improve employee engagement, create new revenue streams and maximize existing ones, improve assets efficiency , enhance productivity and allow for running sustainably A Starting Point Lean vs. Complex Intelligent ENTERPRISE BUSINESS PROCESS INTELLIGENCE Business Process Redesign TOOLS & SERVICES Technical Migration Build Your Intelligent Enterprise S/4HANA & NETWORKS INDUSTRIES* LINES OF BUSINESS* Business Foundation APPLICATIONS & NETWORKS PLATFORM INFRASTRUCTURE Comments Value proposition of RISE with SAP offering comes from differentiating business capabilities and cloud delivery capabilities. Note: You can click on the various RISE with SAP components in the visual or check the appendix for more details on the business capabilities RISE with SAP enables EXPERIENCE MANAGEMENT

8. Value Lever Impact Area Business Outcomes Strategic The Top Line The Bottom Line The Green Line Comments Ensure prioritizing the outcomes that link back to customer priorities. Improve customer satisfaction and decision making Drive efficiency & digitalization Optimize environmental impact and increase compliance Increase revenue with new innovations and services Improve customer satisfaction levels by enhanced assortment management Enhance and improve decision making Business Process improvements and bottleneck identification Improve employee engagement Risk mitigation and business continuity Focus on sustainability Carbon footprint management Circular economy Sustainability reporting Purposeful and sustainable buying decision Ensure safety and health of workforce Governance, risk and compliance (GRC) embedded (e.g., intelligent fraud detection, predictive accounting) , GDPR, core HR processes and payroll localization Resilient and lean supply network that quickly and efficiently delivers what customers want, where, and when Intelligent and consistent E2E financial and procurement processes, e.g. Supplier agreement planning and negotiation Process automation with embedded workflow and RPA capabilities on SAP Business Technology Platform Increase IT efficiency, e.g. via central, intelligent master data management Reduce revenue loss opportunities by holistically performing demand and supply planning Execute omnichannel price and promotional offers Enable new business models supported out-of-the-box: Selling outcomes beyond products Vertical retailing on harmonized process and data model Improve employee collaboration and development to fuel innovation RISE with SAP enables differentiated business outcomes that maximize shareholder value for [CUSTOMER’s NAME], …  A B

9. Comments Ensure prioritizing the business benefits that link back to customer priorities. Strategic The Top Line The Bottom Line The Green Line Improve customer satisfaction and decision making Drive efficiency & digitalization Optimize environmental impact and increase compliance Increase revenue with new innovations and services 15-40% Improvement in customer satisfaction 5-30% Improvement in on-time delivery performance 3-35% Improvement in sales forecast accuracy 10-20% Increase in employee engagement 15-25% Increase in IT project execution success * 10-20% Improvement in employee engagement* 3-10% Reduction in energy usage 3-10% Reduction in carbon footprint (including paper and plastics usage) 5-30% Improvement in environmental safety and compliance 5-10% Improvement in user compliance for employee initiated spend 10-20% Reduction in recurring HXM localization cost* 2-15% Reduction in days in inventory 1-10% Reduction in inventory carrying cost 2-10% Reduction in days sales outstanding 10-20% Increase in merchandising FTE productivity 10-20% Reduction in store operating cost 1-5% Reduction in total logistics cost 5-15% Improvement of sourcing savings on direct spend 1-30% Reduction in revenue loss due to stock-outs 1-20% Reduction in customer churn 2-10% Increase in revenue from cross-sell/up-sell 10-20% Reduction in revenue loss due to fulfillment Issues 5-15% Increase in revenue share of new customers 5-15% Reduction in unplanned markdowns 10-25% Improvement in time to full productivity of new hires* A B … experienced by thousands of SAP Intelligent Enterprise customers Note: Outlined benefits are conservative outside-in estimates of moving from a traditional ERP system to enhanced SAP S/4HANA with line-of-business and cloud capabilities. As each enterprise is at a different level of maturity, SAP can engage to determine the specific value case for your enterprise.*These benefits are supported by RISE with SAP HXM Transformation Package Value Lever Impact Area Primary Value Drivers

10. A B Achieve Process Excellence Leverage Transformation Tools & Services Leverage SAP Reference Architecture Improve Infrastructure Resilience Achieve Application Level Security Leverage Periodic Updates Access Simpler Support Model Simplify Contract & Commercials Gain from Future-Fit, Flexible Pricing Achieve Hyperscaler Economics Integrate and Extend Digital Core Automate Technical Operations Transformation Readiness Operational Resilience “As-a-Service” Experience Predictable, Lower TCO RISE with SAP provides cloud delivery capabilities that mitigate risk, reduce cost and accelerate time to value Comments Use value driver details that are part of the Cloud Delivery Capabilities in L1 and L2 decks. PUBLIC Link - L1 deck SAP INTERNAL ONLY Links - L1 deck L2 deck

11. A B Comments Choose value drivers relevant for the customer. Source: SAP Value Lifecycle Manager A quick value assessment based on industry benchmarks for [CUSTOMER’s NAME] indicates the potential for tangible business benefits The Top Line $XXM Reduction in revenue loss due to stock-outs $XXM Reduction in revenue loss due to customer churn $XXM Increase in revenue from cross-sell/ up-sell $XXM Reduction in revenue loss due to system down-time Integrated merchandise and assortment planning Sensor-based shelf availability Integrated real-time customer loyalty across all channels Experiential retail Infrastructure resilience The Bottom Line $XXM Reduction in inventory $XXM Reduction in store operating cost $XXM Reduction in logistics cost $XXM Reduction in total cost of ownership Predictive inventory orchestration Dashboards for the store manager Advanced transportation and logistics business network collaboration Hyperscaler economics & FUE based pricing Strategic X% Improvement in customer satisfaction X% Improvement in on-time delivery performance X% Improvement in sales forecast accuracy X% Reduction in transformation risk X% Increase in IT project execution success*** Omnichannel fulfilment Advanced transportation management Unified demand forecast One SLA for full application stack Migration tools and services Employee experience management for IT & IT support*** The Green Line $XXM Reduction in energy cost X% Reduction in carbon footprint X% Improvement in environmental safety and compliance $XXM Reduction in recurring HXM localization cost*** Hyperscaler infrastructure Cost and waste optimized ordering and multi-echelon replenishment Environment, health & safety Organizational management and payroll processing *** Value Lever Potential Benefits* Differentiated Capabilities** * This quick value assessment can be performed using SAP Value Lifecycle Manager with minimal information from the customer. Public financial information and select SAP solution capabilities are needed to determine the value proposition * *The differentiated capabilities of “RISE with SAP” can be found in detail in APPENDIX 1 ***These benefits are supported by RISE with SAP HXM Transformation Package

12. Align on vision and desired outcomes Build the value case Plan the path forward Deliver business value Align on business and IT strategy and get buy-in across the organization Build the case for change and identify key initiatives with expected outcomes Create transformation road map and define deployment plan Deliver quick adoption and time to value, and drive continuous innovation and optimization 1. 2. 3. 4. Initialize the transformation Provide our POV on the case for change in the context of industry and customer needs We have a proven methodology to help our customers RISE with SAP and move from Vision to Value Comments RISE with SAP Vision to Value engagement model can be accessed here (SAP INTERNAL ONLY).

13. 1. 2. Value Case Studies Appendix 1. RISE with SAP Capabilities 1.

14. TOOLS & SERVICES Simplify Migration SAP S/4HANA CLOUD Choose a Preferable Deployment Model SAP BUSINESS TECHNOLOGY PLATFORM Explore Platform Services Credits SAP BUSINESS NETWORK Initiate Collaboration with Starter Pack SAP’s INDUSTRY CLOUD Accelerate with Retail Packages Lines of Business Extend the Core Offering with LoB Solutions INFRASTRUCTURE Choose a Provider of Choice BUSINESS PROCESS INTELLIGENCE Process Discovery Reports 14 EXPERIENCE MANAGEMENT Maximize Employee Adoption of New Technology BUSINESS PROCESS INTELLIGENCE Leverage Process Discovery Reports Comments Prioritize/ Update capabilities based on desired customer business outcomes. Process Transformation Get tailored recommendations for tangible improvements and act accordingly utilizing process mining Run established retail business profitably by removing process inefficiencies and drive growth with new business models Ensure consistent, high-quality results by reducing variations in how work is done Benchmark process performance against other retailers Process Intelligence Evaluate change alternatives & implement best practices Establish 360° process governance with approvals, maturity assessments, & more Run in-depth process analysis for actionable improvement Optimize processes for RPA, hyper-automation & AI/ML PUBLIC 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

15. 15 TOOLS & SERVICES Simplify Migration SAP S/4HANA CLOUD Choose a Preferable Deployment Model SAP BUSINESS TECHNOLOGY PLATFORM Explore Platform Services Credits SAP BUSINESS NETWORK Initiate Collaboration with Starter Pack SAP’s INDUSTRY CLOUD Accelerate with Retail Packages Lines of Business Extend the Core Offering with LoB Solutions INFRASTRUCTURE Choose a Provider of Choice BUSINESS PROCESS INTELLIGENCE Leverage Process Discovery Reports EXPERIENCE MANAGEMENT Maximize Employee Adoption of New Technology TOOLS & SERVICES Simplify Migration Comments Prioritize/ Update capabilities based on desired customer business outcomes. Custom Code Migration App Analyze historical custom code (including modifications and enhancements) in current SAP ERP implementation impacted by SAP S/4HANA conversion Focus on strategic extensions and identify unused custom code that you can decide to leave behind Isolate the changes required to your custom code in the context of the SAP S/4HANA transition Readiness Check Check the readiness of your processes and get technical guidance on moving to SAP S/4HANA Cloud, private edition Explore the implications of a move to SAP S/4HANA by identifying the upcoming changes and related effort drivers Analyze custom code & add-on compatibility PUBLIC 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

16. 16 TOOLS & SERVICES Simplify Migration SAP S/4HANA CLOUD Choose a Preferable Deployment Model SAP BUSINESS TECHNOLOGY PLATFORM Explore Platform Services Credits SAP BUSINESS NETWORK Initiate Collaboration with Starter Pack SAP’s INDUSTRY CLOUD Accelerate with Retail Packages Lines of Business Extend the Core Offering with LoB Solutions INFRASTRUCTURE Choose a Provider of Choice BUSINESS PROCESS INTELLIGENCE Leverage Process Discovery Reports EXPERIENCE MANAGEMENT Maximize Employee Adoption of New Technology SAP S/4HANA CLOUD Choose a Preferable Deployment Model Comments Prioritize/ Update capabilities based on desired customer business outcomes. SAP S/4HANA CLOUD: Supplier-Managed Inventory: Improve buyer productivity though close collaboration with suppliers Demand-Driven Replenishment: Promote material flow with strategically placed buffers, reducing inventory and improving service Season, Collection, and Theme Management: Manage seasons for products centrally across the entire supply chain from production to delivery Assortment Management: Offer the right products in the right locations and streamline the process Markdown Management: Improve margins and maintain profits by improving markdown management strategies Retail Price Management: Sell more by strategically managing pricing across retail sales channels and locations Distribution Curve: Use the distribution curve for generic articles to automate planning, purchasing, and sales PUBLIC 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

17. 17 TOOLS & SERVICES Simplify Migration SAP S/4HANA CLOUD Choose a Preferable Deployment Model SAP BUSINESS TECHNOLOGY PLATFORM Explore Platform Services Credits SAP BUSINESS NETWORK Initiate Collaboration with Starter Pack SAP’s INDUSTRY CLOUD Accelerate with Retail Packages Lines of Business Extend the Core Offering with LoB Solutions INFRASTRUCTURE Choose a Provider of Choice BUSINESS PROCESS INTELLIGENCE Leverage Process Discovery Reports EXPERIENCE MANAGEMENT Maximize Employee Adoption of New Technology SAP BUSINESS TECHNOLOGY PLATFORM Explore Platform Services Credits Comments Prioritize/ Update capabilities based on desired customer business outcomes. Accelerate Migrate and maintain relevant master data, standardize integration, and keep the core clean by decoupling custom code Convert and clean business partner and product data Ensure Interoperability by integrating SAP and 3rd party applications Drive rapid and continuous innovation using extensions Differentiate Leverage intelligent technologies and predictive analytics to generate differentiated business outcomes Smart shelves for auto-replenishment Smart mirrors, interactive augmented reality (AR) and virtual reality (VR) kiosks Personalized recommendations for offers based on known and predicted preferences Optimize Optimize, extend, and automate processes with 1,800+ pre-built integrations and comprehensive tools Automate approvals Automate document exchange Employee self-service PUBLIC 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

18. 18 TOOLS & SERVICES Simplify Migration SAP S/4HANA CLOUD Choose a Preferable Deployment Model SAP BUSINESS TECHNOLOGY PLATFORM Explore Platform Services Credits SAP BUSINESS NETWORK Initiate Collaboration with Starter Pack SAP’s INDUSTRY CLOUD Accelerate with Retail Packages Lines of Business Extend the Core Offering with LoB Solutions INFRASTRUCTURE Choose a Provider of Choice BUSINESS PROCESS INTELLIGENCE Leverage Process Discovery Reports EXPERIENCE MANAGEMENT Maximize Employee Adoption of New Technology SAP BUSINESS NETWORK Initiate Collaboration with Starter Pack Comments Prioritize/ Update capabilities based on desired customer business outcomes. Pre-built integration between SAP S/4HANA Cloud and SAP’s B2B Networks enables efficient end-to-end business processes Ariba Network Build a resilient supply base with access to the world’s largest supplier network covering 190 countries, 70 currencies, 24 languages, and 4.2 million vendors Transact multiple electronic documents from replenishment purchase order to final payment Logistics Business Network Collaborate with logistics partners to manage freight transactions, exchange documents, and gain transparency across complete value chain PUBLIC 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

19. 19 . TOOLS & SERVICES Simplify Migration SAP S/4HANA CLOUD Choose a Preferable Deployment Model SAP BUSINESS TECHNOLOGY PLATFORM Explore Platform Services Credits SAP BUSINESS NETWORK Initiate Collaboration with Starter Pack SAP’s INDUSTRY CLOUD Accelerate with Automotive Packages Lines of Business Extend the Core Offering with LoB Solutions INFRASTRUCTURE Choose a Provider of Choice BUSINESS PROCESS INTELLIGENCE Leverage Process Discovery Reports EXPERIENCE MANAGEMENT Maximize Employee Adoption of New Technology SAP’s INDUSTRY CLOUD Accelerate with Retail Packages SAP Omnichannel Promotion Pricing 1 Deliver a great buying experience with consistent promotional pricing across different sales channels SAP S/4HANA Cloud for Retail merchandise management 2 Connect retail processes across the entire value chain to increase efficiency and improve the end-to-end customer experience S/4HANA Cloud for Fashion and vertical business 2 Gather and process data across wholesale, retail, and manufacturing in real-time Customer Activity Repository Cloud 2 Gain a unified view of customer activity across channels to improve omnichannel order management SAP Commerce Cloud 2 Enable seamless shopping cart and checkout experiences Note: 1 Recommended Industry Cloud solution 2 Recommended Intelligent Suite solution as part of RISE with SAP for Retail | Transformation Package SAP Omnichannel POS by GK 1 Integrated POS solution for all channels and countries Central monitoring and control of store devices, including scanners, scales, vending machines etc. Comments This list of solutions is a proposal, and align with your solution engineering for additional solutions in transformation package composition. Please add / change customer specific solutions. ----------- Solutions mentioned above the line are recommended industry cloud solutions and solutions below the line are recommended intelligent suite solutions based on RISE bundle . (SAP INTERNAL ONLY) PUBLIC 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

20. 20 TOOLS & SERVICES Simplify Migration SAP S/4HANA CLOUD Choose a Preferable Deployment Model SAP BUSINESS TECHNOLOGY PLATFORM Explore Platform Services Credits SAP BUSINESS NETWORK Initiate Collaboration with Starter Pack SAP’s INDUSTRY CLOUD Accelerate with Retail Packages Lines of Business Extend the Core Offering with LoB Solutions INFRASTRUCTURE Choose a Provider of Choice BUSINESS PROCESS INTELLIGENCE Leverage Process Discovery Reports EXPERIENCE MANAGEMENT Maximize Employee Adoption of New Technology Lines of Business Extend the Core Offering with LoB Solutions Comments Prioritize/ Update capabilities based on desired customer business outcomes. Analytics & Insights Empower holistic customer insights with integrated analytics Make faster, more-accurate decisions based on streamlined and automated reporting Respond quickly to uncertain business environments with advanced and predictive analytics Buying Experience Enable smarter and simpler requisitions and purchases Deliver a compelling user experience by compelling interface, policy compliance, persona based dashboard or collaboration capabilities for non-retail goods Integrate procurement processes including supplier management, sourcing or paying Human Experience Create engaging people-first, intelligent workplace experiences across all devices that increase engagement and boost productivity Get visibility into all your talent, workforce impact and HR costs across all locations and contractual types Run, grow, and transform all aspects of your business with an intelligent and orchestrated end-to-end process PUBLIC 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

21. 21 TOOLS & SERVICES Simplify Migration SAP S/4HANA CLOUD Choose a Preferable Deployment Model SAP BUSINESS TECHNOLOGY PLATFORM Explore Platform Services Credits SAP BUSINESS NETWORK Initiate Collaboration with Starter Pack SAP’s INDUSTRY CLOUD Accelerate with Retail Packages Lines of Business Extend the Core Offering with LoB Solutions INFRASTRUCTURE Choose a Provider of Choice BUSINESS PROCESS INTELLIGENCE Leverage Process Discovery Reports EXPERIENCE MANAGEMENT Maximize Employee Adoption of New Technology EXPERIENCE MANAGEMENT Maximize Employee Adoption of New Technology Comments Prioritize/ Update capabilities based on desired customer business outcomes. PUBLIC 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ Listen, understand and act on experience data to maximize employee adoption and ROI from your digital transformation across global markets. Improve Governance Harness experience insights to guide transformation Leverage Expert Designed Methodology Embed employee listening into transformations by leveraging leading practices jointly developed by SAP and Qualtrics XM scientists Listen Continuously Identify ‘people related’ risks across multiple teams, touchpoints, and phases of the transformation Gain from Advanced Analytics Use machine learning to reveal insights. For example: surfacing patterns in open text feedback Act Speedily Automate remediation actions using real-time alerts based on feedback and insights

22. 22 TOOLS & SERVICES Simplify Migration SAP S/4HANA CLOUD Choose a Preferable Deployment Model SAP BUSINESS TECHNOLOGY PLATFORM Explore Platform Services Credits SAP BUSINESS NETWORK Initiate Collaboration with Starter Pack SAP’s INDUSTRY CLOUD Accelerate with Retail Packages Lines of Business Extend the Core Offering with LoB Solutions INFRASTRUCTURE Choose a Provider of Choice BUSINESS PROCESS INTELLIGENCE Leverage Process Discovery Reports EXPERIENCE MANAGEMENT Maximize Employee Adoption of New Technology INFRASTRUCTURE Choose a Provider of Choice Comments Prioritize/ Update capabilities based on desired customer business outcomes. Hyperscaler Economics RISE with SAP based on a single FUE metric – offers benefit of lower infrastructure costs without the overhead of managing cloud operations and circumvent the learning curve Reduce time-to-market for new SAP applications/ modules in cloud Infrastructure Resilience Highly resilient global hyperscale cloud infrastructure with high availability and enhanced disaster recovery Highest standards of cloud security Cloud-based automation of routine, error prone tasks Choice of Infrastructure Hyperscaler or SAP data center Scalability option based on the growth of your business Technical operations excellence by ensuring: Single point of contact One set of SLAs PUBLIC 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

23. Omnichannel marketing Customer-centric merchandising Procurement excellence Digital supply chain Omnichannel customer experience SAP S/4HANA Omnichannel price and promotional offer execution Enhanced assortment management Stock protection for individual customers Production planning and demand scheduling Vertical retailing on harmonized process and data model Supplier agreement planning and negotiation In-store production planning and demand scheduling Purchase order and invoice: Processing and collaboration Embedded warehouse mgmt.; Advanced transportation mgmt. RFID-enabled store inventory transactions Vertical retailing incl. m ill products integration for textile products  Dashboards for the store manager with key performance indicators Omnichannel fulfillment with click-and-collect scenarios; Claims, returns and refund management Subscription contracts and s olution billing Required business capabilities Customer centricity Segment of one Digital supply chain Redefined stores New business models Advanced available to promise; Demand and supply segmentation Omnichannel price and promotional offer execution Intuitive in-store SAP Fiori apps for better customer service Distribution curves SAP Business Networks Comments Showcase the core SAP capabilities for the entire value chain. RISE with SAP delivers differentiation with industry best practices

24. Omnichannel marketing Integrated real-time customer loyalty across all channels Customer experience data as a business metric Customers involved in the design of individual products Customer identification for tailored products and personalized offers Merge of experience and operational data for new offers and services Real-time assortments and promotions based on demand and usage Product custo mization at scale Predictive inventory orchestration Dynamic and demand- driven sales pricing Value selling and outcome-based business Ethical and sustainable sourcing Flexible supplier networks for instant order fulfillment Circular economy with principles of sustainable procurement Agile sourcing with reshoring and reshifting to local supply Automation of contracts, authorizations, reorders Customer order processing based on priorities Private label production for a lot size of 1 Branded manufacturing Industry 4.0 Sensor-based shelf availability Omnichannel inventory based on profitability Experiential retail with highly personalized experiences Ultraconvenient and frictionless shopping Digital store inventory with AR/VR Intelligent task management Recycling, reuse, repair, reselling processes Required business capabilities Customer-centric merchandising Procurement excellence Digital supply chain Omnichannel customer experience Customer centricity Segment of one Digital supply chain Redefined stores New business models SAP Commerce Marketplace Management by Mirakl Omnichannel Sales Transfer and Audit* Keytree In-Store Technology Mobile Wallet CX for SAP Commerce Cloud SAP Order and Delivery Scheduling* Intelligent Returns Management* FindMine for SAP Commerce Cloud SAP Omnichannel Promotion Pricing Dropship Accelerator* SAP Customer Order Sourcing SAP Mobile Consumer Assistant by GK SAP Commerce Marketplace Management by Mirakl SAP Dynamic Pricing by GK SAP Logistics Business Network Dynamic Fulfillment Optimizer* SAP Omnichannel Point-of-Sale by GK The Intelligent Suite – SAP S/4HANA Cloud Business Technology Platform *Solution on roadmap 2021 Comments Showcase the advanced SAP capabilities for the entire value chain. Industry Cloud Solutions Industry cloud solutions deliver differentiation with industry next practices and innovations at the vertical edge

25. Comments Showcase how shareholder value can be derived using SAP S/4HANA solution capabilities. The Strategic & Transformational The Top Line The Bottom Line The Green Line Improved customer satisfaction, Improved agility, Increased scalability, Reduced business and technology risk, Improved decision-making Enabled intelligent and autonomous merchandising process, Reduced process costs, increased sourcing savings, Reduced Markdowns, Reduced inventory levels Employee Efficiency, Optimized Environment Impact, More Resilient & circular value chain, Reduced Waste, Increased Compliance Increased up-sell and cross-sell opportunities, increased portfolio of products and services, New revenue streams To Drive Shareholder Value Focus on Key Outcomes SAP S/4HANA and SAP cloud solutions for Retail industry 2-15% Reduction in days in inventory 1-10% Reduction in inventory carrying cost 2-10% Reduction in days sales outstanding 5-50% Reduction in customer billing, credit & collections cost 10-20% Increase in merchandising FTE productivity 10-20% Reduction in store operating cost 5-15% Reduction in unplanned markdowns 1-5% Reduction in total logistics cost 5-15% Improvement of sourcing savings on direct spend 1-30% Reduction in revenue loss due to stock-outs 1-20% Reduction in customer churn 2-10% Increase in revenue from cross-sell/up-sell 10-20% Reduction in revenue loss due to fulfillment Issues 5-15% Increase in revenue share of new customers 3-10% Reduction in energy usage 3-10% Reduction in carbon footprint (including paper and plastics usage) 5-30% Improvement in environmental safety and compliance 5-10% Improvement in user compliance for employee initiated spend 15-40% Improvement in customer satisfaction 5-30% Improvement in on-time delivery performance 3-35% Improvement in sales forecast accuracy 10-20% Increase in employee engagement Note: Outlined benefits are conservative outside-in estimates of moving from a traditional ERP system to enhanced SAP S/4HANA with line-of-business and cloud capabilities. As each enterprise is at a different level of maturity, SAP can engage to determine the specific value case for your enterprise. SAP capabilities delivering differentiated business v alue Strategic Priorities and Key Capabilities Customer centricity Redefined stores New business models Segment of one Digital supply chain Product Lifecyle management incl. Enterprise Product development Integrated merchandise and assortment planning Advanced Available to Promise Distribution curves Extended warehouse management Store merchandise and inventory management RFID based store transactions Unified demand forecast Subscription-based ordering Demand and supply segmentation Cost and waste optimized ordering and multi-echelon replenishment Omnichannel product availability, sourcing and fulfilment Merchandise Allocation planning & Execution Logistics Business Network (Freight Collaboration, Material Traceability) with Transportation Management Master data harmonization across industries Vertical Retailing Capabilities Integrated merchandise and assortment planning Advanced Available to Promise Unified demand forecast Merchandise Allocation planning & Execution In-store production planning and demand scheduling Solution Billing Ariba Network with Purchase Order and Invoice Collaboration

26. Appendix 2. Value Case Examples 2. Value Case Studies 1. RISE with SAP Capabilities 26

27. Business Value Business Engagement One SLA, simpler governance, faster issue resolution Simplified commercial arrangement Simplified updates and enhancements Lower cost of ownership – maintenance, upgrade, testing, integration, etc. Reduced data footprint and landscape complexity Improved security Increase business user satisfaction –engagement Identify bottlenecks, design to-be process & simulate benefits Reduce customizations - maximize standard functionality Faster insight to action One view of the customer Operationalize ML, AI, Blockchain, and others Faster time-to-market Services-based billing, credit and collections New Business, services, solutions Customer self-service Faster, easier interoperability with SAP’s Industry Cloud innovations IT Total Cost of Ownership Enterprise Operational Efficiency Differentiated Customer Experience SIMPLIFY & STREAMLINE IT TRANFORM BUSINESS PROCESSES POWER NEW BUSINESS MODELS RISE with SAP Value Cases Capabilities to simplify and streamline IT, transform business processes and power new business models

28. Appendix 2. Value Case Examples 2. Value Case 1 Focus on Operational Efficiency 1. RISE with SAP Capabilities 28

29. Management Summary Value Case 1 | Focus on Operational Efficiency ACCOUNT SUMMARY >30K employees >5bn USD revenue SAP S/4HANA and SAP Integrated Delivery Framework VALUE PROPOSITION FOR COMPANY BUSINESS OUTCOMES Support growth: Support rapid growth and solve system performance issues from the business volume generated from 100,000 stores by moving to a high-performing, enterprise-wide business management platform Harmonize processes: Integrate multiple brands and connect production, supply, sales, and finance value chain, while supporting continuous retail transformation Optimize inventory management: to enable systematic distribution, replenishment, and allocation Retail Realigned Business Processes 5x faster order scheduling Increased retail store revenue and enabled rapid store establishment, thanks to new technologies, systematic processes, and a flexible organizational structure Enhanced planning sessions deliver more accurate forecasts, enabling the organization to optimize quality of each product line Real-time Operations 10x more proficient physical inventory management Accelerated product inventory circulation in retail and distribution channels with rapid distribution and intelligent scheduling Gained efficient and real-time data to guide operations based on dynamic inventory, sales, gross profits, and other metrics SIMPLIFY & STREAMLINE IT | TRANFORM BUSINESS PROCESSES | POWER NEW BUSINESS MODELS

30. Reduction in revenue loss due to stock-outs ​ Establish new revenue streams and reduce revenue loss opportunities Improvement in process efficiency Identify process bottlenecks, design to-be processes, and reduce risk during migration Improvement in time to value ​ Benefit from bundled offering, support services, and pre-built integrations to improve the time to value​ Reduction in IT governance cost ​ Benefit from simpler support of cloud offering, thereby reducing the need of interacting with multiple stakeholders​ Improvement in customer satisfaction Increase organizational competitiveness with strategic & transformational initiatives Reduction in days in inventory​ Improve business process efficiency and effectiveness across functional areas Value Case Value Case 1 | Focus on Operational Efficiency Achieving tangible business benefits from cloud capabilities SIMPLIFY & STREAMLINE IT | TRANFORM BUSINESS PROCESSES | POWER NEW BUSINESS MODELS

31. Example | Intelligent Technologies - Demand Forecast & Inventory Optimization Ensure right product mix is available at the right time at the right place Description : Businesses can optimize their sales using predictive technology so that the right product mix is available at the right time without keeping too much stock. Unified HANA data model that brings together budget store data, real-time inquiries from ordering mobile app, campaign and promotions plan, historical and real-time google trends data, product catalog, inventory and historical demand Dynamic Demand Forecasting and Product Recommendation ML Algorithms Product performance user friendly SAP Analytics Cloud Dashboard ​ Intelligent Mobile App for real time triggers for customer inquiries and product ordering and integration with inventory systems Dynamic next week demand forecast beyond department level, enables better decision making in a timely manner Support decision making through a real-time dynamic dashboard Understand customer needs and start building B2B scenarios with other retail shops​ Balance order plan to mitigate demand peaks and avoid lost sales Reduce workload on procurement operation activities Increase predictability for customer, reduce negative experience and lost sales Identifying best assortment mix based on store geographic location & customer buying behavior Identifying the right product mix (size, gender) and volumes Supporting decision making through a real-time information, no alarms on critical situations like out of stock or aging stock Holding optimum inventory levels Merging and analyzing multiple business and external data in order to create dynamic forecasts and detailed order plan in time Portfolio Category: BTP Capability: Advanced Analytical Processing: Business Functions, Predictive, Series Data, Text Analytics ~90% organizations desire to maintain right sized inventories and flow in the supply chain and drive replenishment based on actual demand, but only 16% are able to do so * * SAP Performance Benchmarking CHALLENGES SOLUTION OVERVIEW BUSINESS BENEFITS SIMPLIFY & STREAMLINE IT | TRANFORM BUSINESS PROCESSES | POWER NEW BUSINESS MODELS

32. Appendix 2. Value Case Examples 2. Value Case 2 Focus on Fueling Growth 1. RISE with SAP Capabilities 32

33. Management Summary Value Case 2 | Focus on Fueling Growth ACCOUNT SUMMARY VALUE PROPOSITION FOR COMPANY BUSINESS OUTCOMES >350 employees >350mn USD revenue SAP S/4HANA Retail for merchandise management Retail Support growth: A digital platform capable of automating and streamlining processes to support explosive growth and expansion across eight markets Drive innovation: Boost future innovation across multiple businesses and delivery models Real-Time Data Insights & Analytics : Stay ahead of trends and give millions of customers what they want along each step of the shopping journey Revenue Uplift Ability to quickly add private-label brands and cross-list products to meet customer needs, increasing revenue and helping local designers expand and reach new markets Process automation and standardization to support an annual double-digit growth rate Superior Customer Experience Better shopping experience, resulting in a 9% increase in Net Promoter Score over eight months Scalability to provide customers with increased assortments, on-time delivery, and flexible payment methods Future Ready Business Processes 5% reduction in general and administrative expenses Real-time KPI reporting and analytics to optimize resource distribution, streamline IT and finance Better governance and visibility across business partners, brands, articles, and shipments Standardized procurement processes, including multitier approval workflows, transparent payments to suppliers, and better cash management SIMPLIFY & STREAMLINE IT | TRANFORM BUSINESS PROCESSES | POWER NEW BUSINESS MODELS

34. Reduction in unplanned markdowns Establish new revenue streams and reduce revenue loss opportunities Improvement in process efficiency Identify process bottlenecks, design to-be processes, and reduce risk during migration Improvement in time to value​ Benefit from bundled offering, support services, and pre-built integrations to improve the time to value​ Reduction in IT governance cost ​ Benefit from simpler support of cloud offering, thereby reducing the need of interacting with multiple stakeholders ​ Improvement in on-time delivery performance Increase organizational competitiveness with strategic & transformational initiatives​ Reduction in total logistics cost Improve business process efficiency and effectiveness across functional areas Value Case Value Case 2 | Focus on Fueling Growth Achieving tangible business benefits from cloud capabilities SIMPLIFY & STREAMLINE IT | TRANFORM BUSINESS PROCESSES | POWER NEW BUSINESS MODELS

35. Example | Intelligent Technologies - Customer Retention Insights Continuously monitor and predict the churn risk of customers CHALLENGES SOLUTION OVERVIEW BUSINESS BENEFITS * SAP Performance Benchmarking Description : Follow the 'digital fingerprints' of each individual customer, measure the relevance of touch points related to churn and provides timely churn prediction. Portfolio Category: BTP Capability: Advanced Analytics Processing: Machine Learning Churn trend analysis, event analysis, prediction/at-risk customers Automatically classifies and finds rules in customer transactional behavior patterns Automatically identifies events and early indicators related to behavior (like churn) Applies extracted rules in real-time to detect customers-at-risk at an early stage Forecasting of customer "lifetime" with the story Comparison report of the customer profitability and customer attrition Dashboard with customer segments, their estimated "lifetime", drivers for customer attrition and "what-if" analysis Analyze and create insights into customers’ behavior. Provide the ability to mine, predict and capture leading retention indicators and take proactive actions using machine learning Improve return on marketing investment Cost savings: it is 5-10 times more expensive to acquire new customers than to keep existing customers Increase revenue stream from customer base Lower Total Cost of Ownership using the cloud delivery model and quarterly release cycles with new use cases Limited insight into relevant data sources to narrow down reasons for customer churn Not customer-centric: legacy systems and processes prevent having a single view of the customer and across various channels Data limitations: failure to understand customer transactional behavior due to limited data acquisition capability Following the Digital Fingerprints down to individual customers Providing timely churn prediction and addressing root causes Targeting profitable customers and those likely to leave 20% higher Customer Satisfaction for organizations where detailed customer profiles, history, preferences are maintained for each customer at the point of interaction* SIMPLIFY & STREAMLINE IT | TRANFORM BUSINESS PROCESSES | POWER NEW BUSINESS MODELS

36. Comments Customer references Strategic The Top Line The Bottom Line The Green Line Improved customer satisfaction, improved agility, reduced business & technology risk, improved decision making Reduced costs, optimized R&D spend, high cash conversion cycle efficiency Optimized environment impact, more resilient & circular value chain, reduced waste, increased compliance Increased upsell and cross-sell opportunities, increased portfolio of products/services, new revenue streams, increase in service revenue COOP Switzerland “By integrating intelligent technologies into our promotions planning processes, we can reduce residual quantities, minimize waste, and offer customers the goods they actually require in each store.” Heiner Hanser, Head of Master Data Management and Marketing Processes, Coop Group PVH CORP. “Our IT platform is key to driving our strategy by supporting innovation, modernization, digitalization, and scalability. Moving to SAP S/4HANA for fashion and vertical business has given us the transparency and flexibility we need to continue to grow.” Eileen Mahoney, Executive Vice President, Global CIO, PVH Corp. BEELINE “Retail solutions from SAP are playing a crucial role in helping us get the right products to the right stores at the right time, enabling us to work more efficiently and supporting rapid growth.” Yvonne Franklin, Product Director, beeline GmbH ZALORA Better shopping experience led to 9% increase in Net Promoter Score over 8 months “A superior customer experience is what is helping Zalora grow and expand. With a strong digital core, we are literally providing 24-hour access to some of the world’s most favorite brands, even in far and distant places.” Ruben Stappers, Chief Financial Officer, Zalora South East Asia Pte Ltd. KALYANI MOTORS Stronger inventory management and control, with greater visibility on stock and inventory movements reducing inventory levels by 7% “With SAP S/4HANA, we’ve modernized our business processes and laid a robust foundation for future digital innovations.” Nagendra Prasad, Chief Financial Officer, Kalyani Motors Private Limited ANTA SPORTS PRODUCTS LTD. 90% more efficient inventory consumption thanks to automatic updates for a large number of orders “With the move to SAP S/4HANA, we’ve addressed system performance bottlenecks and enhanced the operational efficiency of our supply chain by more than 80%, supporting our continued fast-paced business growth.” Donghai Chen, IT Head of ANTA Group, ANTA Sports Products Limited WUHAN QIAN (KEN GEE FOODS) 25% Revenue growth due to improved process efficiency “Using SAP solutions, we have established a digital tracking system to visualize the supply chain from purchasing, warehousing, production, and logistics to stores, helping safeguard the delivery of more healthy, reliable, and delicious goods for consumers.” Yong Liu, CIO, KenGee Food Co. Ltd. GUANGZHOU QDAMA AGRICULTURAL PRODUCTS Increase the accuracy of sales forecasting, replenishment, and the allocation process “While the retail industry has faced challenges during the pandemic, supported by our investment in SAP S/4HANA, our fresh food business has grown against the trend, with our Wuhan, (China) store increasing sales by 40%. With SAP S/4HANA as our technology foundation, we have reimagined the fresh food supply chain, speeding the entire process of purchasing, packaging, picking, and delivery to just 12 hours.” Zhou Lin, GM of Technology and Development Center , Guangzhou QdamaAgricultural Products (Qdama) Additional cases of how SAP Retail customers are realizing value What are others accomplishing? Impact Areas Key Outcomes Realized

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