SAP Enterprise Asset Management Solution Overview and ...

1 SAP Enterprise Asset Management Solution Overview and Strategy in a Nutshell Achim Kr ger, Vice President, Line of Business Asset Management , SAP SE. July 12, 2017. PUBLIC. Legal disclaimer The 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 negligence. All 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 decisions. 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 2. SAP Enterprise Asset Management (SAP EAM) Solution Trends in Asset Management ISO 55001, ISO 14001, Internet of Things (IoT). ISO 45001, and the like to scale connectivity Optimizing cost, risk, Big Data for getting and performance insight from IT and OT. Balancing OPEX with Analytics for prediction CAPEX and simulation Meeting stakeholder Business Technology Machine learning expectations challenges enablers to improve Empowering business decisions practitioners Enterprise mobility Facilitating to empower employees collaboration among Cloud for collaboration EPCs, OEMs, service providers, and operators 2017 SAP Leonardo Live.

4 All rights reserved. I PUBLIC 3. SAP Enterprise Asset Management Asset Management in an ever-more-connected world Cost Performance Risk Connecting corporate objectives 55001. with the Asset system Business needs Acquisition and Operation and Configuration and Decommission Asset analysis Plan and design commission maintenance change Management and disposal Connecting all stakeholders alongside the Asset lifecycle Manufacturer Service provider Supplier Owner or operator EPC Dealer IT Connecting IT with OT OT. 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 4. SAP Enterprise Asset Management Supporting Asset Management processes from end to end Portfolio and project Asset operations Environment, health, Asset Management and maintenance and safety network Asset strategy Asset information Idea Management Incident Management and performance collaboration Portfolio Maintenance planning and Health and safety Asset information Management scheduling Management governance project Maintenance Environment Predictive maintenance Management execution Management and service Mobile Asset Management Resource Management Management of change Maintenance safety project connectivity and permit to work 2017 SAP Leonardo Live.

5 All rights reserved. I PUBLIC 5. Bimodal IT according to Gartner Systems of record versus systems of innovation + Mode 2 . Systems of SAP Leonardo innovation Governance Change SAP Integrated Systems of Business differentiation Planning Systems of record Mode 1 +. Source: Gartner 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 6. Envisioned logical architecture for SAP Enterprise Asset Management Strategic direction SAP Digital Boardroom Business intelligence Steer businesses Deliver insights to drive strategic decisions Mode 1 Mode 2. SAP Integrated SAP Leonardo Business Planning Run businesses SAP Ariba SAP Fieldglass Internet of Things solutions solutions SAP Asset Differentiate Hyperautomate business Asset processes SAP SuccessFactors Intelligence Intelligence businesses Network Network solutions SAP Asset Strategy Intelligently SAP Predictive Predictive and Performance connect people, Maintenance Maintenanceand Service Management things, and Master data Differentiate Business businesses PM EH&S Mobile Mobile STO.

6 CO PS MRS SAP Leonardo IoT Foundation FI MM PLM . Digital core Embrace data Data foundation Orchestrate data of any Machines Sensors OT Systems Edge volume, velocity, and variety 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 7. SAP Predictive Maintenance and Service From sensor to insight to outcome Sensor Data Insight Action Outcome Connected IT/OT Data Maintenance Business assets convergence analysis activities value Onboarding Big Data ingestion Root cause analysis Prioritized Customer experience Connectivity Big Data Asset health maintenance and Increased quality infrastructure monitoring service activities Device Lower costs Management Merging sensor data Machine learning Optimized warranty and spare parts Operational efficiency Security with business Anomaly detection information Management R&D effectiveness Triggering of Prescriptive Material procurement corrective actions maintenance Quality

7 Improvements 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 8. SAP Predictive Maintenance and Service How can information systems help? Remote monitoring Agile planning Alerts and actions SAP Leonardo IoT Engineering Life Distance Anomaly . capabilities rules indicators scoring detection OT Other Connected Digital core systems data sources assets and sensors (SAP S/4 HANA). (such as SCADA) (such as weather). 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 9. SAP Predictive Maintenance and Service Solution components and value drivers Logistics and maintenance Availability through the cloud or on Actions execution systems Business user premise Flexible extension concept to Insights SAP Predictive Maintenance and Service Domain expert build industry- or customer-specific Asset health Asset health fact models and analytics control center sheet Scalable machine learning engine Insight provider catalog that drives data science insights into our business processes Flexible visualizations across Alerts Machine learning engine Data scientist equipment structures Comprehensive process Raw SAP.

8 SAPL eonardo IoTFoundation Leonardo Foundation data SAP Leonardo IoT Edge Data manager integration: alert, discover, SAP Leonardo for Edge Computing remedy Machine data Business data 2017 SAP Leonardo Live. All rights reserved. I PUBLIC 10. SAP Asset Strategy and Performance Management Adding more efficiency by looking at the fleet Cost Condition data allows for a ranking of assets according to a health score. Run-to-failure Run-to-failure For healthier assets, the service interval can be prolonged, while it can be shortened for others. Preventive (agile). This results in fewer failures and lower maintenance costs. Preventive (static). Preventive (static). 2017 SAP Leonardo Live. All rights reserved.

9 I PUBLIC 11. SAP Asset Strategy and Performance Management (planned). End-to-end process enablement Benefits Process innovation Increase overall Asset availability Increase MTBF increase equipment reliability Improve utilization of assets Classification of assets Asset criticality and risk Collaborative failure Perform FMEA. Control maintenance spend into groups assessment modes library Reduce work backlog Identify savings opportunities through preventive and predictive maintenance Reduce capital tied up in spare parts inventory Analyze systems and Perform RCM. Analyze and optimize project manager functions maintenance strategy review Adopt a proactive and targeted maintenance strategy Change the sequence of the process using point apps Solution integration points SAP Asset Intelligence Network Bad actor Integrations and CAPEX / OPEX inputs SAP Predictive Maintenance and Service Perform RCA, ETA Management and spares optimization extension points to 3rd- party systems to maintenance strategy SAP ERP application or SAP S/4 HANA (PM, MM, FI/CO, PP functionalities).

10 SAP Integrated Business Planning MTBF mean time between failures; FMEA failure mode and effects analysis; RCM reliability-centered maintenance; RCA root cause analysis 2017 SAP Leonardo Live. All rights reserved. I PUBLIC This is the current state of planning and may be changed by SAP at any time. 12. Digital transformation in Asset Management driven by IoT, cloud, and business networks What does digital transformation mean for Enterprise Asset Management ? Connect to the Asset Bring together information from operational and business systems (IT/OT convergence). Utilize the IoT for scaling transparency without neglecting existing information sources Predict Asset system behavior Avoid unplanned downtime and major operational consequences through simulation and prediction Discover patterns of failure and preserve operational integrity Blend business IT information with operational (OT) data Share Asset information and collaborate Activate the ecosystem of OEMs, EPCs, service providers, and operators Make sure there is one version of truth on Asset master data Use a business network to enable integrated processes in the cloud 2017 SAP Leonardo Live.