SAP Sales and Operations Planning Powered by SAP

SAP Sales and Operations Planning Powered by SAP HANA CSA Know How Network Conference Raghav Jandhyala , Jothish Karunakaran

SAP Sales And Operations Planning Powered by SAP HANA Why S&OP? Why SAP for

What is S&OP? Tom Wallace Definition Sales & Operations Planning (S&OP) is a set of decision-making processes to: § Balance demand supply § Integrate financial planning and operational planning § Link high-level strategic plans with day-to-day operations Typical S&OP Process © 2012 SAP AG. All rights reserved. 3

Sales & Operations Planning Commonly asked Questions 10% off 11. 3% 8 Marketing Campaigns planned this quarter, can we handle uplift? How will the Oil price hike impact our business? YTD Margin 5. 9% Understand causes & Evaluate options (Volumes, Prod. mix, Prices, Customer segments) New Introducing Raptor! When, Where & How to time an New Product Introduction © 2012 SAP AG. All rights reserved. 104. 6% 4 Plants running over capacity, are we planning too close to 100%? 4

S&OP Pain Points © 2012 SAP AG. All rights reserved. § § Too many spreadsheets and systems involved in the S&OP process § § Working at aggregates only and can’t connect to detailed mix § § Executive S&OP views lack latest information Cannot get users to provide input, especially sales, marketing and executives Spend more time assembling data than planning Outdated demand, supply and finance plans Cannot change demand view impact on supply and financials right away Too hard to simulate and compare planning scenarios Planning decisions made without considering supply chain constraints and profitability Executive S&OP meeting information is hard to share and is disconnected from planning tools 5

Agenda Why S&OP? Why SAP for S&OP? What Technology Innovations power S&OP Demo S&OP

Market Situation and SAP Opportunity Key Requirements Sales and Operations Planning n Facilitates collaboration between supply chain, sales, marketing, manufacturing and finance to create an aligned business plan that links strategy and operations n Regarded as the most important SCM application across all Manufacturing Industries (Consumer, Discrete, Process). Projected Size and Growth of Market Segment (M EUR)* 240 212 183 155 131 n Deliver a dedicated Sales & Operations Planning (S&OP) solution that integrates data from existing ERP, SCM and CRM enterprise applications. n Provide simulation capabilities to evaluate multiple planning scenarios and analyze impact on revenue, margin, and volume. n Provide S&OP-focused performance management through analytics and dashboards. n Provide task and document management capabilities to facilitate the S&OP process n Leverage emerging technologies such as On Demand In Memory for flexibility and scalability 2011 2012 2013 2014 2015 n SCM market: demand planning, supply network planning n CRM market: trade promotion management, sales planning n ERP market: financial planning, profitability planning, Adjacent Markets Monetization Components © 2012 SAP AG. All rights reserved. Major Competitors n n Oracle (Demantra) Steelwedge (Hosted S&OP) JDA (i 2 & Manu acquisitions) Kinaxis (SCM On Demand) New Customer Revenue n New S&OP OD Subscription Revenue ~ 300 k euro/customer/year Additional Revenue Streams n Pull-through HANA and Streamwork revenues n Rapid Deployment Solution Protect suite maintenance revenue stream n Discourage customers from “unplugging” APO and other SCM * Gartner SCM Market Estimates - 2009 components 7

Evolution More Innovation with SAP Supply Chain Management Breakthrough SAP Sales & Operations Planning powered by SAP HANA SAP Demand Signal Management powered by SAP HANA: Integrated Sales and Operations Planning Demand Management Response Management Manufacturing & Supply Planning SAP Advanced Planning and Optimization with SAP HANA Supply Chain Execution SAP Supply Network Collaboration SAP Transportation Management SAP Response Management (ICON) SAP Global Batch Traceability SAP Enterprise Inventory Optimization (Smart. Ops) SAP Extended Warehouse Management © 2012 SAP AG. All rights reserved. 8

Sales & Operations Planning Profitably align Demand & Supply to drive new Revenue Growth and Reduce Supply Chain Cost Sales and Marketing Forecasting Executive Review & Real-Time Analytics Real-Time Scenario Planning & Simulation Consensus Demand Planning Demand Supply Complete Demand, Supply & Finance Model Material & Capacity. Constrained Planning Social Collaboration Revenue & Profit Impact Finance Inventory Target Setting & Projections People © 2012 SAP AG. All rights reserved. Process Data 9

SAP Sales & Operations Planning Powered by SAP HANA Unified Data Model Real-time Planning Simulations and Scenarios – Instantly Rich, Contextual Social Collaboration Planning and real-time analysis with a unified model of demand, supply chain, and financial data at any level of granularity and dimension Rapid, interactive simulation and scenario analysis, using the full S&OP data model to support demand-supply balancing decisions Embedded, context-aware social collaboration enables rapid planning and decision-making across the organization © 2012 SAP AG. All rights reserved. 10

Solution Architecture SAP Sales and Operations Planning 2. 0 Powered by SAP HANA™ User Interface BPC APO BW Any Other System Web UI sftp | https CRM Out-of-the-box Integration ERP Data Services (on premise) SAP HANA™ Planning Views (Excel) S&OP Model & Engine Analytics Dimensions (Web) Attributes Key Figures Social Calculations Collaboration Scenarios Simulation (Web/Mobile) Process Workflow Alerts Sales/ Marketing Demand Planning Finance Supply Chain Administration (Web) Excel Executives Cloud-based © 2012 SAP AG. All rights reserved. 11

S&OP HANA – Product Overview © 2012 SAP AG. All rights reserved. q Modern HTML 5 based UI q S&OP Process Dashboard q Data Integration q Admin capabilities q Social S&OP q User defined Analytics q Excel based planning views q Scenario planning and Simulation q Model and Calculations q Real time alerts 12

What Technology Innovations power S&OP SAP Sales & Operations Planning is a next generation planning application leveraging these technologies In-Memory Planning Social Collaboration Analytics/Mobile Data Integration Cloud Deployment

1 In Memory 2 Social Collaboration 3 Analytics / Mobility 4 Data Integration 5 Cloud SAP HANA In-memory Technology S&OP models have billions of data points. HANA Enables Constraint-based supply/demand balancing in real time at detailed and aggregate levels © 2012 SAP AG. All rights reserved. Real-time what-if scenario analysis on full S&OP data model Instant company-wide financial impact analysis 14

1 In Memory 2 Social Collaboration 3 Analytics / Mobility 4 Data Integration 5 Cloud Excel based Real-Time In-Memory planning Real-Time Planning & Simulation on HANA § Consensus demand planning, Rough-cut capacity planning, Volume & revenue modeling, § Real-Time what if scenarios § R/T aggregation & disaggregation § Constraints at both detailed and aggregate level © 2012 SAP AG. All rights reserved. 15

1 In Memory 2 Social Collaboration 3 Analytics / Mobility 4 Data Integration 5 Cloud S&OP Collaboration - Leveraging SAP Streamwork Redefining Collaboration in the Enterprise Feed Discussion Action Items Documents Empowering People n Facebook Simple n Social n Enterprise wide n Always relevant and realtime n Any device, any moment © 2012 SAP AG. All rights reserved. Contextual n n Connect People, Data, Process, Events together in a single context with Structure Collaboration, Analytics and Decisions all within the same context Secure n Secure with a single foundation n Granular control of data: Roles, permissions, … n Safeguard corporate data Follow 16

1 In Memory 2 Social Collaboration 3 Analytics / Mobility 4 Data Integration 5 Cloud S&OP - Role and Context-aware Collaboration Raise issues with the team and drive to a resolution Easily track progress of the S&OP process See action items relevant for your role and current stage in the process Get important updates and instantly see the context for each change or comment © 2012 SAP AG. All rights reserved. 17

1 In Memory 2 Social Collaboration 3 Analytics / Mobility 4 Data Integration 5 Cloud Sales & Operations Planning - Analytics Advanced Analytics using Streamwork MAUI § Real-Time Analytics on entire S&OP model powered by HANA § Customizable analytics: any end-user can define visualizations § Social Analytics to share and discuss results with participants © 2012 SAP AG. All rights reserved. 18

1 In Memory 2 Social Collaboration 3 Analytics / Mobility 4 Data Integration 5 Cloud Sales & Operations Planning – Analytics/ Mobile Mobile § Social Collaboration § Real-Time Analytics © 2012 SAP AG. All rights reserved. 19

1 In Memory 2 Social Collaboration 3 Analytics / Mobility 4 Data Integration 5 Cloud Data Integration using Business Objects Data Services Data Services § Automated data loads from multiple source systems § Secure On-Premise to Cloud integration (https, sftp) § Configurable target data model with extensibility § Flexible source-to-target integration templates using SAP Data Services § Data export back to Source systems © 2012 SAP AG. All rights reserved. 20

1 In Memory 2 Social Collaboration 3 Analytics / Mobility 4 Data Integration 5 Cloud SAP Sales & Operations Planning Delivered Saa. S on the SAP Cloud Benefits of Cloud Solution § Ease and speed of implementation § Lower capital expenditures § Simplified access for S&OP users § Dedicated hardware with scalable data volumes § Automated fixes and upgrades § Increased service level § Scalable Usage-based Model § Secure infrastructure in state-of-art facilities © 2012 SAP AG. All rights reserved. 21

1 In Memory 2 Social Collaboration 3 Analytics / Mobility 4 Data Integration 5 Cloud SAP S&OP - Cloud Data Security § Dedicated customer-specific data storage and application § Secure, flexible data load via SFTP and https with HANA firewall § Secure infrastructure in state-of-art facilities § Externally audited § Scalable usage-based model © 2012 SAP AG. All rights reserved. 22

Demo

S&OP Early Adoption Program Customer Value Proposition Accelerated start on achieving business value with SAP S&OP On-Demand Getting the software up-to 6 month before general availability Dedicated Early Adoption back office to expedite implementations Early training for your key users and project team • • Smooth on-boarding and reduced project risk • Pool of S&OP Experts selected to support early adoption customers • Leverage S&OP On-Demand Implementation methodology • Access to Implementation templates, content and accelerators Dedicated support from Early Adoption Office to ensure successful on-boarding at no charge to Customer (**$40 K-$50 K Investment ) • Full time Early Adoption Coach (Expert) active hands-on involvement during each phase of the implementation • Named Product management contact to address S&OP process / Product feature/function • Named Development Angel contact to proactive review blueprint and design • Direct channel into SAP Development for accelerated issue logging and resolution Board attention on your project (regular reporting to Executive leadership and Board) Directly influence future product features/functions to meet S&OP business requirement ** - Only for contracted and delivered during Early adoption Phase (May – Sep 2012) © 2012 SAP AG. All rights reserved. 25

SAP Methodology for SAP Sales & Operations Planning Onboarding Service Cloud System PREPARE SYSTEM SETTINGS & ENABLEMENT 1 2 3 4 5 Conduct Preparatio n Call Conduct Project Kickoff Develop Blueprint Complete Configuratio n Load Data 6 Conduct Key User Enablement GO-LIVE 7 8 9 10 Verify Solution Acceptance Enable End Users Go-Live SAP Go-Live Service Go live with SAP On. Demand solution in 10 steps in as little as 2 months A streamlined Onboarding methodology to get S&OP up and running quickly Business Center for S&OP On-Demand Solutions from SAP © 2012 SAP AG. All rights reserved. 26

High Level Project Schedule wk 1 wk 2 wk 3 wk 4 wk 5 PREPARE wk 6 wk 7 wk 8 wk 9 wk 10 wk 11 wk 12 SYSTEM SETTINGS & ENABLEMENT wk 13 wk 14 GO-LIVE Project Kickoff & Solution Workshops 1 2 3 4 5 Workshops Solution Blueprint Design 1. 2. 3. 4. 5. 6. a Model Setup and configuration Develop Data Extracts Data Loading Key User Enablement Kickoff Planning Design Analytics Design Roles Definitions Data Design Key User and System enablement Checkpoints a. b. 6 System Verification Solution Design System Verification b End user training © 2012 SAP AG. All rights reserved. 27

Thank you

SAP S&OP on HANA can help your business Align demand supply profitably Manage inventory levels and capacity utilization Drive revenue growth Increase customer and product profitability Reduce supply chain costs Avoid material and capacity shortages © 2012 SAP AG. All rights reserved. 29

Pilot Customers “We could adjust demand volumes and the capacity resource allocations and immediately see their impact on revenue and margins in the solution. This is something that used to take multiple spreadsheets, numerous emails/phone calls and meetings to develop an aligned plan. . . ” “We were able to assess the impact of fluctuations in capacity positions at contract manufacturers on our sales forecasts in real-time, model alternative scenarios and cut our planning cycle time in half. The ability to do what-if scenarios on combined demand, supply and finance data, integrated analytics and contextual collaboration around key planning decisions are important differentiators. Richard Komm Director, Advanced Micro Devices James Smith Director, Mc. Kesson We are excited about the solution and look forward to rolling it out at Mc. Kesson. ” “S&OP powered by HANA makes demand supply balancing with large sums of data simple, fast, and actionable. It integrates, aligns, and synchronizes Sales, Operations, and Finance in real time, allowing collaborative decisions with the help of analytics and simulations on a demand-driven supply chain. S&OP with HANA can do in hours what it takes the business weeks to do. ” © 2012 SAP AG. All rights reserved. John Flebut Vice President, Atmel Corporation 30

Customer Testimonial: Cascades “Cascades is aiming to cut inventory costs, as well as generate tens of millions of dollars in additional savings. S&OP as a process looks very promising as a means to help achieve these objectives. We were impressed with the level of engagement from the SAP team. S&OP on HANA, with its robust simulation capabilities, is a solution that looks like it has great potential to accelerate our achievement of these objectives. ” Dominic Dore CIO, Cascades © 2012 SAP AG. All rights reserved. Founded in 1964, Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibers. The Company employs more than 12, 000 employees, who work in more than 100 units located in North America and Europe. 31