Business Value based on the SAP S4/HANA Strategy

1 Business Value based on the SAP S4/HANA StrategyBert Schulze, VP Co-Innovation and Strategy , SAP S/4 HANAN ovember 2015@BeSchulzeThe information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of Business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's Strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice.

2 The information in this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP s willful misconduct or gross forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.

3 Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing Disclaimer2 2015 SAP SE or an SAP affiliate company. All rights Digitized CoreQuick Journey Recap@BeSchulzeThe Modern Drivers Of ChangeDrivers of ChangeCustomerCustomer-Centric MindsetCustomer ServiceIs The New BrandEmpowered & InformedCustomerTechnologyMobilityCloudB ig (Smart) DataSocialSustainabilityCities Middle ClassCollaborationGlobal SocialNetworksCollective ActionsInnovationNew ExpectationsStart Up MentalityDisruptiveInnovationDiscontinue dBusiness ModelsUnprecedentedPaceNetworksIoTNew Workforce 2015 SAP SE or an SAP affiliate company.

4 All rights 2015 SAP SE or an SAP affiliate company. All rights HANA journeySAP HANASAP Business Warehousepowered by SAP HANASAP Business Suite powered by SAP HANA Real-time analysis Real-time reporting Real-time Business OLAP and OLTP together SAP HANA Enterprise Cloud for SAP Business Suite on SAP HANA In-memory platform2011201320126 2015 SAP SE or an SAP affiliate company. All rights small, medium & large companiesSAP Business Suite, powered by SAP HANA is primetime548+ Live customers1241+ go-live projectsin 73 countries33%60%7%<100 users100 > users115 in HANA Enterprise Cloud (HEC)in all 26 >53% through Partners170+ active Partners7 2015 SAP SE or an SAP affiliate company.

5 All rights HANA, the journey continuesSAP HANASAP Business Warehousepowered by SAP HANASAP Business Suite powered by SAP HANA SAP Simple Financepowered by SAP HANA Real-time analysis Real-time reporting Real-time Business OLAP and OLTP together SAP HANA Enterprise Cloud for SAP Business Suite on SAP HANA In-memory platform Instant financial insight No aggregates Single source of truth Simplified data model New user experience Advanced processing Choice of deployment20158 2015 SAP SE or an SAP affiliate company. All rights Customers2140+Licensed Customer Scenarios 395+Active Customer ProjectsSAP S/4 HANA only 8 month after the launchIn all 26industries & 54countries21in HANA Enterprise Cloud (HEC)The Digital EconomyIs A Reality -No Firm, No Industry Is Immune*MIT Digital Change Survey, 2013Of Business leaders said that achieving digital transformation will become critical to their organizations within the next two years.

6 *78%Of employees in companies where CEOs have shared their vision for digital transformation feel that it is the right thing for the organization.*93%All lines of Business running in real time on a digital Business platformThe digital Value chainSuppliersPeopleResourcesOmnicommerc eDeliver exceptional experiences to your customers across every channel of interactionTo enable the workforce of the future employees and contingent laborEnable frictionless commerce by managing suppliers betterManage materials, assets, money, and other resources betterCustomersBusiness networkSocialInternet of ThingsOther unstructured/structureddataThe digital Value chain 2015 SAP SE or an SAP affiliate company.

7 All rights DriversUnit of OneTechnologyinducedchangeThe Digital Storefront as typical first what comes next?Service promiseAbility to delivere2e experienceThe end to end digitized enterprise is a mandatory consequence[#/ ]timeDigital Economy# of lots# ofinvoicesValue&sizeof lotsvalue&sizeof invoicesUnit of OneDigital store as typicalfast market entryMVP = Minimal Viable ProductDigital Customer ExperienceSegment of ONENew customerexpectationsAuto-replenishment/S ubscriptionPersonalized CouponsPlan Your Trip tothe StorePersonalizedCommunicationEasyOrderi ngfrom AppCuratedExperienceIn-StoreNavigation 2015 SAP SE or an SAP affiliate company. All rights S/4 HANA The Digitized Core@BeSchulze 2015 SAP SE or an SAP affiliate company.

8 All rights S/4 HANA Suite Introducing the next generation core and lines of Business solutions for the digital economySAP S/4 HANA MARKETINGSAP S/4 HANA HUMAN RESOURCESSAP S/4 HANA MANUFACTURINGSAP S/4 HANA SUPPLY CHAINSAP S/4 HANA SALESSAP S/4 HANA FINANCESAP S/4 HANA SERVICESAP S/4 HANA SOURCING & PROCUREMENTSAP S/4 HANA ASSET MANAGEMENTSAP S/4 HANA RESEARCH & DEVELOPMENTThe Digital CoreThe Digital CoreEnterprise ManagementFORMERLY KNOWN AS SIMPLE LOGISTICS 2015 SAP SE or an SAP affiliate company. All rights S/4 HANAF unctional Scope as of Today Full ERP scope Full SAP S/4 HANA Finance Full SAP S/4 HANA Logistics Integrates with SuccessFactors Employee Central, hybrisMarketing and Aribanetwork Industries CRM, SRM, SCM co-deployed w/ ERP Key core scenarios Embedded ERP scenarios to extend scope* ( Business All in One scope) Integrates with SuccessFactorsEmployee Central, hybrisMarketing and Aribanetwork Industries according roadmap*Note: HCM default = SuccessFactors Employee Central This is the current state of planning and may be changed by SAP at any time.

9 SAP S/4 HANASAP S/4 HANAOn-Premise EditionSAP S/4 HANAC loud Edition Complementing S/4 HANA in-app extensibility Customer extensions Partner extensionsExtensionsHANA Cloud PlatformSAP S/4 HANA -Key Enabler To Run Digital Transformation for Enterprises SAP HANA AS THE UNDERLYING PLATFORM OLAP & OLTP MERGE IN-MEMORY COMPRESSION CODE PUSH DOWN INCREASE IN SPEED SIMPLIFICATION OF APPLICATIONS AND UNDERLYING DATA MODEL PRINCIPLE OF ONE NO AGGREGATES & NO INDICES HIGHER FLEXIBILITY & THROUGHPUT DATA FOOTPRINT REDUCTION SAP FIORI AS THE USER EXPERIENCE (UX) PARADIGM; CROSS-APPLICATION USER EXPERIENCE WEB- based , ALL DEVICES ROLE- based DECISIVE, PREDICITVE, SIMULATIONRe-architecting for in-memory platformResponsive userexperience design Principle of ONE 2015 SAP SE or an SAP affiliate company.

10 All rights S/4 HANA real-time analytics architectureFoundation for new class of applicationsGranularPre-definedInstantan eousSAP S/4 HANA applicationsSAP NetWeaverPLATFORMSAP HANA Database LayerPhysical TablesZero latency!OperationalReportingApplications (incl. insight-to-action)Query ToolsABAP LayerSAP HANA Views (Virtual Data Model)Core Data Services (CDS) 2015 SAP SE or an SAP affiliate company. All rights reserved. 2015 SAP SE or an SAP affiliate company. All rights PrincipleofOne in SAP S/4 HANA withSAP ECOperational ProcurementSFSF ECBWE mbedded AnalyticsNocompletepicture. Onlyillustrative. FioriAppsHANA DBHCMEWMS trategic Procurement 2015 SAP SE or an SAP affiliate company.