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Short Presentation Title - SAP S/4HANA Value Advisor

SAP S/4 HANA . Transform Retail Merchandise Management with SAP S/4 HANA . 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 1. AGENDA. Retail on SAP S/4 HANA overview 2. Responsive Merchandise Management Deep Dive 7. SAP S/4 HANA Solution Portfolio for Retail 9. SAP S/4 HANA Retail Value Proposition 13. Customers Are Achieving Value from SAP S/4 HANA 14. 2016 SAP SE or an SAP affiliate company. All rights reserved. -2- Public 2. RETAIL ON SAP S/4 HANA overview . Transform retail merchandise management on SAP S/4 HANA . We have arrived in the age of digital transformation where Second, become more data driven to create insights that Key to SAP's digital core strategy is everything is connected. Retailer CEOs need to keep up with improve your business for example, introduce the ability SAP S/4 HANA Enterprise innovation cycles that are becoming 5x 10x faster and to connect, record, and report live on your business. Management, deployed on premise answer tough questions: How to build a customer SAP S/4 HANA allows real-time insight into operational data or in the cloud, and running the SAP.

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Transcription of Short Presentation Title - SAP S/4HANA Value Advisor

1 SAP S/4 HANA . Transform Retail Merchandise Management with SAP S/4 HANA . 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 1. AGENDA. Retail on SAP S/4 HANA overview 2. Responsive Merchandise Management Deep Dive 7. SAP S/4 HANA Solution Portfolio for Retail 9. SAP S/4 HANA Retail Value Proposition 13. Customers Are Achieving Value from SAP S/4 HANA 14. 2016 SAP SE or an SAP affiliate company. All rights reserved. -2- Public 2. RETAIL ON SAP S/4 HANA overview . Transform retail merchandise management on SAP S/4 HANA . We have arrived in the age of digital transformation where Second, become more data driven to create insights that Key to SAP's digital core strategy is everything is connected. Retailer CEOs need to keep up with improve your business for example, introduce the ability SAP S/4 HANA Enterprise innovation cycles that are becoming 5x 10x faster and to connect, record, and report live on your business. Management, deployed on premise answer tough questions: How to build a customer SAP S/4 HANA allows real-time insight into operational data or in the cloud, and running the SAP.

2 Experience that new competitors cannot easily replicate? and combines analytics with transactional capability. It HANA in-memory, columnar How to conquer new segments or markets? How to create removes the dichotomy of transactional versus analytical database. This combination of a new business models to outpace existing competitors that systems and allows for better decisions every time. modern ERP system, change how to make money? Third, reimagine your business processes with the power running on a modern, Following are three important aspects of driving your digital of in-memory computing. Accelerate mission-critical post-transactional . transformation. operations, run simulations, and use embedded science to database represents one of the gain better control over your core processes. Move away best examples of a core ERP. First, rethink your business model and try out new from traditional batch processing to dialog processing and environment that can support a territories.

3 Retailers are leveraging their customer proximity eliminate decision cycle time to take action in the moment. broad-based innovation strategy to add services to products and to market banking and while remaining robust enough to insurance products. They are extending the manufacture of Overcome siloed information and fragmented business support traditional transactional and private-label products, generating revenue from parking process within the same system (in the core, finance, operational requirements. space with fuel stations, or turning into network providers inventory management, and valuation components of SAP Josh Greenbaum, Enterprise for consumer health and lifestyle information. The S/4 HANA are harmonized into common journals), allowing Applications Consulting opportunities are numerous yet often prevented by supply chain people to have real-time insights into inventory prescriptive industry practices in enterprise resource and finance people to control intercompany profitability with planning (ERP) systems here we need a new dimension real-time inventory evaluation.

4 SAP's considerable of flexibility and agility in the core systems. investment in the digital SAP S/4 HANA Retail for merchandise management is the SAP S/4 HANA SAP's new-generation ERP suite industry-specific version of the SAP S/4 HANA Enterprise core,' the SAP HANA platform, designed specifically for in-memory computing follows the Management solution, the new merchandise management fashion management capabilities, industry to the core principle, meaning that various platform providing previously unavailable agility and and IoT bode well for SAP. industry solutions that in the past technically excluded each flexibility that enables you to reinvent your business. Make it customers and prospects, and IDC. other now run on one platform. This allows new capabilities the digital core of your future Value network and start to recommends that retailers evaluate and practices that extend the traditional Value map and connect your workforce, suppliers, consumers, and the how SAP's portfolio and road map process framework the basis for running vertically, like Internet of Things (IoT) in real time to capture every has changed to serve them into the many fashion companies, or operating an oil and gas opportunity and leverage digital transformation for future.

5 - Achim Schneider, Global Head of business on the same instance with fuel station increased business Value . Retail Business Unit, SAP SE. convenience shops. Such a platform can enable a future- proof strategy. 2016 SAP SE or an SAP affiliate company. All rights reserved. -3- Public 3. RETAIL ON SAP S/4 HANA overview . SAP S/4 HANA Retail for Merchandise Management Sources of Value SAP S/4 HANA Retail for merchandise management is at the core of a comprehensive suite of retail offerings designed to help retailers meet the demands of a digital economy. It supports retail core processes end to end, starting with master data down to point-of-sales (POS) connectivity. It allows insights into operational retail data, empowering users with contextual, real-time information for faster and better decision making. Processes can easily be extended to connect to business networks to form a digital ecosystem and collaboratively drive business model improvements. Equipped with a simple and intuitive user experience, the solution offers better support for headquarters users as well as store associates to drive compelling customer experiences.

6 Key Capabilities for SAP S/4 HANA Retail Responsive Merchandise Management Developed natively on the SAP HANA platform with all options for real-time analytics, integration, and application services Redesigned with highly simplified data models and processes in key areas such as inventory management, stock valuation, and even closer integration into the SAP S/4 HANA Finance solution, leading to high throughput and fast reporting in key processes Consistent user experience and launchpad access across all functional areas, allowing new ways of working for business users Empowerment of store associates and store managers with everything they need for better customer service and shop-floor operations Omnichannel order execution and fulfillment based on real-time sales and inventory information to keep up with customers' expectations of world-class shopping experiences Industry to core one platform that unites various industry solutions using harmonized data models and objects, thus opening up potential for synergies and cross-scenarios 2016 SAP SE or an SAP affiliate company.

7 All rights reserved. -4- Public 4. RETAIL ON SAP S/4 HANA overview . EXAMPLE: Store Employee User Experience Simplification The store has moved from being a pure selling location to a brand ambassador and omnichannel fulfillment hub that now needs to unify the customer's experience and is instrumental in supporting today's anything anywhere consumer supply chain. It requires a smart and empowered workforce to provide expectation-beating customer service. Traditional ERP means: ? ? Slow, tedious processes and guesswork used to make stock available on store Store staff Store staff shelves Systems not guiding staff or reflecting reality Manual, often expedited replenishment Staff moves around Staff uses mixed Manual corrections Required stock is and still risk for shelf gaps that impact store without system application screens and expensive made available on customer shopping experience and lead guidance to determine to sort out stock expedites are made store shelves to missed revenue if store shelf stock is situations and using best guesses.

8 Adequate corrections SAP S/4 HANA Up to 10%. Role-Based In-Store Processes Reduction in An exception-driven, guided process stock-outs enables precise stock assessments and immediate corrections and increased Store staff staff productivity. Up to 30%. Accelerated replenishment and accurate ? Required stock is Improved user productivity made available on inventory help ensure optimum on-shelf store shelves availability. Store staff are freed up from noncustomer-facing tasks and can focus System guides staff through store, and Up to 5%. on serving the customer. staff makes real-time, exception-driven Higher revenue stock corrections using intuitive mobile by employee app 2016 SAP SE or an SAP affiliate company. All rights reserved. -5- Public 5. RETAIL ON SAP S/4 HANA overview . EXAMPLE: Inventory Control Process Simplification Inventory is the greatest asset of retailers but also the most costly, so it is essential for controlling to strike the balance between being in stock but not tying up too much capital.

9 It is essential to not only look at stock Value but also how product profitability evolves across the entire Value chain so controllers need continuous visibility into inventory and Value at the highest and lowest level of granularity and the flexibility to react in real time. Traditional ERP means: Difficult to understand total stock position and upward and downward trends between reporting milestones Controller Profitability Hard to steer overall tied-up capital and Post to Period-end Extract Review and needs to finance, reconciliation to data correct goods reports drive profitability proactively assess Permanent latency in inventory turnover controlling, and cost warehouse movement product and allocation postings and reporting profitability Inflated capital investment and reduced profitability intercompany profitability analysis product flows SAP S/4 HANA. Inventory Management Inventory quantities and values are stored in general journal tables that allow insights into stock positions and values in $.

10 Real time logistics and controlling Granular review of product flows across sharing the same base of data, which Controller needs the entire Value chain using one central Profitability enables course corrections and to assess journal for finance and controlling data analysis revaluations whenever needed. profitability Up to 20% Up to Improvement in inventory turnover Increase in profitability 2016 SAP SE or an SAP affiliate company. All rights reserved. -6- Public 6. RESPONSIVE MERCHANDISE MANAGEMENT DEEP DIVE. Typical Challenges Traditional ERP SAP S/4 HANA Enhancements Benefits*. Fast fashion, consumer electronics Master data management provided little New seasonality concepts are a main driver 5% 10% reduced markdowns any retailer dealing with highly seasonal support for season handling or decision for all processes of a product along its merchandise needs to manage support to determine which styles run best. complete lifecycle, from master data increasing number of products with creation to procurement and sales, price rapid changes in the product lifecycle.


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