Industry. We are now in the is paradigm shifters and drivers of their business transformation. But now, humankind is at a crossroads. Even before the global pandemic, digital transformation was top of the list of many companies because disruptions are increasing in frequency and magnitude. Just think climate change, social unrest and inequality or shifting global Trade Relationships.
In a world that is constantly changing, the spotlight is on companies that point out new ways. And we at SAP provide all of them with the necessary technology and know how, be it for strong supply chains, Robust delivery networks, engaged workforce, flexible procurement, real time finance, efficient manufacturing, personalized commerce or to rethink business models. When E. ON wanted to create a more sustainable and energy efficient future for us all. They built a smart energy management platform based on IoT app provides real time data on the performance of buildings' heating and cooling units.
When COVID-nineteen hit their business, Casey's was able to increase the average order value via their mobile app, thanks to high personalization. When the pandemic turned our world upside down, pharma and health companies like Moderna and CureVac developed and produced a vaccine within
1 year that is now distributed in the U.
S. By seen within 1 year that is now distributed in the U. S. By enterprises like McKesson. One thing is for sure, there has never been a greater need to become intelligent enterprises, to be more resilient, more profitable and more sustainable.
And we at SAP will show you how to achieve this together.
Ladies and gentlemen, a warm welcome to 2021 and to the launch of a new game changing offering by SAP. But before we are getting into it, thanks for joining us today. And let me share my gratitude To our over 400,000 customers, 23,000 partners and last but not least, to our more than 100,000 SAP colleagues across the globe. For almost 50 years now, together with you, we have helped the world to run better. But We are now at an inflection point.
New digital technologies and the ongoing move to the cloud are changing how we serve our customers And won an enterprise. COVID, climate change, geopolitical tensions expose how fragile our world and companies can be. The crisis prudently shows how resilient the business model, supply chain and operations of an enterprise really are. The business transformation to make your enterprise ready for the new normal is not optional anymore. It's a must to stay relevant and win in the market.
And everyone is obviously setting the bar very high regarding the desired outcomes. Just take retail or other B2C businesses, with consumers demanding a seamless and personalized experience Across every touch point and channel as well as next day delivery and flexible payment terms. Or take manufacturing where factories and warehouses operate without any human intervention or supply chains The design, plan and manufacture personalized offerings at scale. Finally, Sustainability becomes make or break as your consumers will care how serious you take the climate change. We have to use new intelligent technologies to reduce the carbon footprint and move our enterprises towards the circular economy.
As a result, transforming into an intelligent enterprise has never been more important than today. To be more resilient, to open up new growth opportunities, to drive higher productivity without compromising on your ambitious sustainability So everyone understands the why. Everyone also likes to talk about these opportunities. But if everyone wants to transform, why is it so challenging? Why do so many industry leading enterprises keep getting disrupted?
I just don't see the outcomes I just highlighted out of that transformation. So before we designed the new offering, it was key for us to listen with empathy to our customers To exactly understand their challenges and what they need. And it became very clear. A key challenge for many enterprises is the how. How to holistically transform, Especially when you are somehow still successful in the market.
Let's face it, in many enterprises the reality about digital Transformation projects, if you go around the table, is the following. There is the CEO looking for growth with new business model. Next is the CFO seeking for higher margin via process automation. No one really around the table cares about Simplification and standardization of business processes end to end. And on top, still too many stakeholders in an enterprise are sitting on the sidelines And believe that digital transformation will happen with IT in the lead by performing a technical migration of their IT landscape To resilient cloud infrastructure by talking about the power of AI and buying new technology.
But you won't be able to adapt new business models, achieve higher process automation or become more sustainable with such a one dimensional approach. Actually, a holistic business transformation starts at the top. It's about changing the culture and mindset of an enterprise. It's about getting everyone behind this change. It's about business being the lead to redesign business processes end to end And to reduce internal complexity.
And it's about IT serving as an enabler Hand in hand with the business to adopt with agility new innovative applications and very important The wide business platform serving as an integration, extension and semantical data layer for the enterprise. Today, based on the feedback of thousands of customers and partners, we launched an offering to enable your transformation To provide answers for how to transform your enterprise, we introduced 1 new offering Where we together with our partners connect the business processes with technology and data to deliver desired outcomes Let me explain you the transformation journey and the new offering with the help of 2 concrete Customer examples. Both customers have a very different point of departure and the market situation couldn't be more different
Founded less than a year ago, LiveKindly Collective has grown up digitally. The company is a collective of plant based heritage and start up brands with one mission to make plant based living the new norm, shaping consumer preferences and transforming the current meat centric food system at speed by bringing healthier, tastier and more sustainable plant based brands to consumers worldwide through strategic partnerships and investments with seed growers, upstream producers and distributors, LiveKindly Collective stands out in the plant based food sector as a company that owns and operates the higher value chain. Now it's in the middle of globalizing its business for more growth and to scale its processes. To achieve this, They chose SAP. They built their system landscape from scratch in a greenfield approach using SAP's best practices, going live in 5 months only.
And during the pandemic, they are now running SAP S4HANA public cloud to strengthen their existing supply chain operations and enter new markets. Founded in 18/47, Siemens is a global technology company with more than 290,000 employees. Siemens creates sustainable industrial innovation for a world we want to live in today and tomorrow. For over 170 years, Siemens Technologies has re shaped life for billions of people by empowering the transformation of industries that form the backbone of economies. The company develops technologies that helps its customers to create more agile and productive factories, more intelligent and efficient buildings and grids, more reliable and sustainable transportation.
But in a world that is constantly changing, Siemens knows that to stay ahead, it needs to continually adapt, innovate and transform itself. Now they are undergoing a massive IT transformation, simplifying their complex IT landscape by leveraging cloud technologies with the ultimate goal to streamline their highly modified systems. To achieve this, Siemens needs a thought out stepwise approach with the help of strong partners like SAP. These two companies couldn't be more different, be it with regards to heritage, size or scale, starting with LiveKindly Collective. The company is less than a year old, has more than 470 employees and is running SAP and 3 ERP systems.
This Kindly Collective has been transforming its whole business within 5 months and is now looking for scale and growth. Siemens, on the other hand, is an over 170 year old established company with more than 290,000 employees running SAP in over 30 ERP systems. Now, they want to achieve more agility and innovation by having 1 cloud based ERP system for more than 200 countries worldwide. Although their points of departure and market situation significantly differ, they are united in their wish to become an agile to reach their goals.
Here we go, 2 very different customers, Given the history and size, but also regarding the point of departure of their IT landscape. But they are united in their demand to grow the business either by adapting to new or by scaling existing business models And by applying new technology to 1 intelligent business processes at scale with the help of our new offering.
Tell us a bit more about LIVEKINDLY. How did it become the front runner in the plant based lifestyle?
LIVEKINDLY was founded about 4 years ago. And this is back when plant based really wasn't mainstream at all. It was often covered quite negatively in the media. You know, my goal when I created LiveKindly was to really create a community that was based on creating solution focused content, meeting people where they're at in their journey, whether they're adopting a plant based lifestyle for health reasons, wanted to reduce their Intake of meat to, you know, help save the planet and combat climate change. And so this is something which wasn't really done before in the media.
And I think that this is really kind of showing why we've grown so much today is that people do really want to make a positive
Operating in an increasingly digitized environment, what are the main challenges you are facing?
The age of kind of Consumer access to information is obviously kind of changed a lot over the years and increasing the access to information that we have is just Something that is driving consumer change and consumer habits, consumers are demanding more visibility and transparency of a brand and whether that's food brands or media, it's really affecting us all. And this also, you know, is something that impacts us as a content creator too. We're also held to that highest standard and We need to create content that is the voice of the consumer, which is exactly what we do.
Why did you choose SAP to support you on that, Johnny?
Our mission is to make plant based living the new norm. And that is obviously a very big transformation, like You need to create a total IT infrastructure, which has the ability to go through all the different stages from start up to scale up To a global multibillion business. And so for sure, that is where SAP came in. To be able to set that up, That is where SAP became our ultimate critical partner to build the global spine. The S4HANA Cloud actually help us to be able to have global skill and expertise and local intimacy.
I must say is that the S4HANA The flexibility which it now has was really part of the ability to say this is how we want to do it? We will always look at IT not to own it, not to in any way To have the platform ourselves, but to leverage the IT and that we use our strategic partners To be able to really have the ability to scale it, and that is why and where we use S4HANA. What are
your plans for 2021 and beyond despite the pandemic?
2021 will be our year from Startup into scale up. We will accelerate the growth in the businesses which we have acquired to become part of the collective, And we will accelerate that growth. Then we will go into the U. S. And into China as new markets, and we will continue To actually acquire and do more M and A.
Again, once we have created this global spine, new businesses can actually plug and play on the back end and be part of the global part?
Let's start our conversation about why the digital transformation has become so imperative for our customers in response to this crisis. How do you see this progressing in 2021 beyond? And what does it mean for our joint customers?
Actually, it goes back even before the pandemic crisis was starting that we saw that there's a digital transformation ongoing In all our markets, it's the demand for higher productivity, for making more taking more advantage out Therefore, there's a combination of technology, maybe also new business models and pandemic crisis, which really accelerates the whole thing. This will not stop After 2021 or 2022, we do believe this is sustainable and it will definitely support All our industries for the next level of productivity.
How do you see the role of SAP in this context?
I do believe that Siemens as a P, we have very much in common. So what we are doing, we are enabling our customers With technology to really make them staying relevant and make their transformation happening. In total, I do believe that SAP has a great chance Coming as really as
a
pure play digital company and sitting on so many fundamental processes along the value chain To really help in this transformation along with your ecosystem.
How can companies like Siemens and SAP help customers with their digital transformation?
It starts always at the customer and to understand what's the need of the customer, what are their pain points, What hinders them for leveraging their assets better for driving productivity, reducing Quality for failures and so on. And I do believe that this is something where both companies have something in common. We do have Certain level of domain know how, yet coming from different areas. We are very strong in the PLM area. We are very strong in the ERP system.
And together, we can really connect the full value chain and make something really massive happen with our customers.
How does Siemens stay innovative and competitive?
I do believe this is a kind of constant change a company has to make, also accepting failures and then you have to really constantly change. But yet also to be very clear, you also have to Think about what your strengths are and build on it. This is the challenge about this transformation. Digital Technologies have a shorter cycle time. Now we are talking about cycle time of month.
So therefore, we have to also change the way how we are running our company in a different way. So stay always tuned. And Last point is, it is at the end of the day, it really is about people. If you have the right people in place, empower them. And if you foster this kind of what we call growth mindset, Then you have a high chance to survive also after 170 years.
How can SAP help with the transformation of Siemens?
We have a long, long, I think 27 years partnership where we're using your products and always. And Now we are at a point where we also want to move our ERP system to the cloud. So we want to do that together. And since we have also 27 year grown ERP system with all the legacy behind, I tell you, I told my people, I don't want to move a copy paste on behalf to the cloud. So we are working on processes.
This is where SAP can bring a lot of expertise because you see it from other customers too. What can we learn? So adapt it and then make the move to the cloud With the benefit of having then shorter innovation cycles sitting on your shorter innovation cycles. And I think if we do that together, We can definitely improve Siemens operations, run a leaner, less complex system,
Starting today And together with you, our customers and partners, we will not only reinvent how businesses run with intelligent technology. With our new offering, you will be able to drive a holistic business transformation with your customers and employees in mind. Together with our partners, we are making sure you have everything you need to achieve the desired business outcome on your transformation Ladies and gentlemen, I'm thrilled to launch RISE with SAP, Our partners and we from SAP will be with you In the new offering, we have brought together all elements you need To simplify your journey in 3 simple steps, business process redesign based on industry best practices And SAP's unique and large data treasure to make sure you are transforming how your enterprise runs. 2nd step, technical migration to a standard and modular solution landscape with 1 semantical data layer. And finally, building your intelligent enterprise with S4HANA Cloud and our business technology platform SD Foundation.
RISE with SAP will help to accelerate your business transformation. Now, Let me show you the different elements of our new offering here on stage. Let's start with making the change a reality Together with the business and based on facts. As mentioned, a true transformation starts with the business. And based on my very own experience, this is already the most difficult part, creating a culture of being open To change existing business models and how people work.
Overcome internal change resistance and complexity To standardize and automate processes. I can tell you, you won't achieve the desired business outcomes by showing Powerpoint presentations to your colleagues that explain somehow the need for change. Nor will this happen When you just extract and pull data in another 3rd party process mining tool. So the first element of RISE with SAP For more than 20,000 customers, based on these unique insights, you can discover And analyze your processes end to end. Benchmark them against leading industry standards Without pulling your data into a 3rd party solution.
Afterwards, the business and process experts get tailored recommendations Finally, you can reflect your future business processes in the configuration of the application To make BPI work for you in 2021 as part of rise with SAP, we will even enhance our portfolio. I'm happy to announce the planned acquisition of Signavio, a strong player in the Process Intelligence market. You will hear more about this later from my colleagues, Luka Mutzic and Ruben Morado. Let's move on to the next element of RISE with SAP, The technical migration to a modular and standard application landscape. This is key To gain agility in the future and react quickly to new business demand.
In our offering, we therefore embed services by SAP and partners To get rid of modifications and custom code and to support you in harmonizing and governing your data layer on our platform. So you can run your company based on one semantical data layer and on one source of truth. We of course also understand how mission critical your business processes are. That's why we will continue To embed further automated services to make the migration of your IT landscape to the cloud happen with fast time to value And near zero downtime. You will hear more about that part of the offering later from my colleague, Shane Paladine.
Now we are coming to the 3rd element of the new offering. It's time to build your intelligent enterprise as part of The basis of the Intelligent Enterprise is the cloud infrastructure. Here, we provide you maximum choice At the lowest possible cost, we can further improve system availability with an SLA of 99.9% Our disaster recovery and high availability capabilities will provide We will also offer the best security standards in the industry. We support the main security certificates in Air Wickhandi and we will offer EU access only. On top, you will gain reduced TCO by up to 20% compared to your existing landscape By running the workloads in our own data centers or via the hyperscaler, always with the best operation costs in the industry.
And no matter which infrastructure you choose or who the operation partner is, SAP will be your single point of contact in this offering. So you literally have one hand to shake, which is crucial when it comes to your mission critical workloads at the heart Let's move now on to the differentiating platform layer. Our business technology platform With our platform, you can run integrated business processes with SAP apps Sharing one semantical data model, one identity and authorization service and one user experience. On top, over 2,200 APIs on the API Business Hub ensure integration to Having one semantical data layer on your platform is a key treasure, Which only SAP can offer, not only for integration purposes by the way. Combined with one analytics layer across our apps, It enables you to steer and plan across the enterprise in real time based on one source of food.
Having one semantic data layer is also key to have high quality data for RPA and AI scenarios. Finally, application and citizen developers can extend SAP solutions on our platform with superior Low code, no code capabilities and a world class workflow service to change processes on the fly. Our CTO, Jurgen Miller, will share later on further exciting news about the leading business platform. As part of RISE with SAP, you will also get free access to the world's largest business network. COVID has shown one thing.
Too many enterprises still manage their business within their own four walls Of their company with one to one connections to the stakeholders across the supply chain. This way, They cannot react fast enough to country lockdowns, overcapacity or lack of inventory. The times when you are managing your business in sequential process starts have to be over. From now on, you can manage your complete supply chain in real time to react faster than anyone else Our business networks provides you access to more than 5,000,000 connected companies. You can choose manufacturers that deliver on time, meet production standards or you select the ones Which are closest to you to reduce carbon emissions.
You and every trading partner connect to the network once To manage your business with all dependencies real time. Finally, you need intelligent applications to truly change How your business runs. So our market leading intelligent ERP system SAP S4HANA Cloud Embeds AI, RPA and advanced analytics. It can be deployed both in a public And hybrid cloud to offer you maximum flexibility depending on your degree of system standardization, process complexity and How fast you can make the change work within your enterprise. Our architects will help you to standardize in the cloud even the most Our Head of Product Engineering, Thomas Saueraszek will show you later Some customer examples to demonstrate how customers improve productivity by automate transactional processes by up to 90%, Offering new flexible license models or intelligent ways to improve the cash flow of your enterprise.
We will also show you how to improve the customer experience by bringing user, customer brand and employee sentiment Into every decision and action you take, we will integrate the world's leading experience management solution Qualtrics In more than 30 solutions by the end of this year, including S4HANA. And Thomas will show you how customers drive sustainability In the 10 most emission heavy industries alone, We will enable companies to reduce 15% of their carbon footprint. And now I'm very proud that we just added another key value driver to our market leading cloud ERP solution for you, our dear customers, Collaboration. As we all realize in the new normal after COVID, it's important to run a frictionless enterprise. Employees in their daily business need to collaborate remotely with people in and outside of the company.
Collaboration needs to be embedded and has to be part of a world class user experience. And which enterprise can do this better than SAP and Microsoft. Microsoft Teams Embedded in our apps will lead to a frictionless enterprise and in many business situations to a much higher productivity of your end users. We just announced an extension of our partnership with Microsoft, where we are going to embed Microsoft Teams In our core applications like S4HANA, I have spoken with Satya Nadella. Let's hear from him some additional insights about
Satya, how are you doing? I just wanted to catch up on our exciting announcement.
No, thank you so much, Christian. It's great to be here on Teams with you.
I can actually still remember one of our conversations roughly a year ago. We talked about how we can create even better outcomes for our customers together. We also exchanged some ideas and put our engineering teams to the design board. Now we determine the future of work And create a frictionless end of us.
No, absolutely. I mean, I think the world is sort of going through a massive accelerated change And all driven digitally, right, because the level of constraints that have been placed around how we work, how we live is unprecedented. But most perhaps, interestingly and maybe the silver lining here is how digital technologies become that malleable resource The world is using to overcome the constraints. I mean, if you think about even how we work and how we collaborate, how we learn, And then also some of the challenges around how do we stay healthy and the well-being are all Important considerations, it's about people, management, process and technology. And You're absolutely right.
And so SAP and Microsoft with all of what we do coming together to help the world and every organization in the world deal with these challenges, But more importantly, thrive even in spite of the constraints is such a priority. What are you seeing? I mean, I know that there is a lot That Microsoft and SAP can do together, but if you put from a customer in perspective, what is the real opportunity here?
I'm very excited about how the Microsoft Teams integration supports the new ways of working. The new normal After the pandemic, we'll look different when it comes to the future of work. For example, remote selling will remain imperative For companies across many industries, integrating SAP Sales Automation with Microsoft Teams simplifies the remote selling process Without switching applications, customer calls can be initiated on the fly, while the sales representative is managing the pipeline Or doing configure price quote. Also end users in our other SAP applications will be able to collaborate and set up meetings Out of the business process without switching applications. By integrating Microsoft Teams across our solution portfolio, We truly bring collaboration to the next level.
We bring together market leading business applications with the market leading business collaboration platform, And that's pretty exciting if you ask me. Another thing I'm really happy about is that we will now also extend our partnership To further accelerate the adoption of SAP S4HANA on Microsoft Azure, just in time with our new offer, Rise with SAP, To support our customers with their holistic business transformation and migrate our ERP customer base to the cloud. For me, this is an essential step, running the world's most mission critical business processes, highly resilient on Azure. Why is this a win win Satya, not only for Microsoft and SAP, but for all of our customers?
It's such an important initiative. Obviously, we've been working together since 2019. But taking this partnership about bringing And how people are using things like digital twins to fundamentally do lights out manufacturing. In retail, every retail and our curbside pickup is just Part and parcel of what they're going to do going forward. See, if you look at all of those mega trends now that are getting accelerated, what it requires Great business software, business process software, business automation software, that data to get connected, Quite frankly, from with all the other data in the enterprise and all the other workflows, right?
So whether it is the Teams integration on one side for Knowledge workers and frontline workers, but more importantly, the robustness of the public cloud infrastructure and S4HANA Coming together, and we see this in action. We are partnered deeply with Walgreens Boots Alliance, where S4HANA And Azure are coming together. We're also seeing this in the iconic clothing brand, Carhartt, where they're again using Teams And all of as a front end to all of the S-four business operations that you talked about. So I think these are the types of things that we can do together because of our partnership and I'm really looking forward to having more innovation, but we have a fantastic start already.
Thanks a lot, Satya. Take care.
Thank you so much.
Ladies and gentlemen, this is the future. RISE with SAP Business Transformation as a Service, a path for every one of you, tailored exactly to your needs. We provide you the basic components of an intelligent enterprise in one bundle that includes 3 business process intelligence capabilities, Cloud Infrastructure of Choice, our Business Technology Platform, free access to the business network And our market leading ERP solution S4HANA Cloud, everything complemented with premium services and tools, All without high upfront investments, but with reduced TCO of up to 20%. Plus the business and commercial flexibility you need. You can decide Which capabilities you want to use at what point in time?
You can decide when you migrate your ERP to the public cloud We'll stay hybrid for some additional time. We have seen in the customer videos how very different IT landscapes are. So this is crucial. But either way and with each step, you will experience tangible business transformation benefits. Apart from the business perspective, this offering is more than the sum of its parts.
You get all of this as one offer
with one contract with one responsible party for one price. Building on this kickstart, you can tailor your intelligent enterprise
to meet your respective business needs, allowing you to clearly differentiate yourself in the future. Customers and partners alike can easily complement and extend and integrate with any other of our LOB and Industry Solutions, Partner or third party solutions with the ability to use exactly the same data model and business services as our own SAP applications, Allowing you to run your core and industry specific processes seamlessly end to end and top to bottom With a full 360 transparency, ladies and gentlemen, the path to transform a business holistically Into an ever evolving intelligent enterprise has not been clearly defined so far. SAP has been a trusted partner of businesses for almost 50 years building on what we have jointly achieved with all of you, we will now support you to become a smarter and faster version of yourself, so you can achieve significant and fast time to value and thrive in a world that keeps moving faster and Your decisions, your destination, but we go there together. Together, we can master all challenges. Together, We can reinvent how businesses run.
And I'm convinced that together, we will continue to help the World 1 better
One of the most mentioned business concerns of the corona crisis is resilience. Agility is the foundation for resilience. It's already the new normal. Companies need to adjust to new customer expectations, Enable new business models, increase delivery, supply chain flexibility and transparency in this globally interconnected world, And all while we still cope with climate change, which leads to an increased pressure on sustainability. Let's be honest, none of this is new, but a dramatic acceleration based on this pandemic pushed companies This disruption is happening in every industry in one shape or the other.
But one thing is clear, 2022 won't look anything like 2019. The new normal In 2020 2021, it's just an interim status towards the next normal we need to master. Ladies and gentlemen, my name is Thomas Sawasick as the Executive Board Member responsible for all SAP business applications. It's my clear goal to help you being successful in these challenging times. In the next 30 minutes, I would like to give you A sense of why the intelligent enterprise is key to success and how SAP can support you to become an intelligent enterprise.
What we can do together to stay ahead and what's coming next. I won't be doing it alone. It's important to hear from customers and partners who are with us on that journey. So let's get started. If you think about why the intelligent enterprise is key to success, I fundamentally believe that you need to be able to optimize The end to end business processes along the entire value chain, which means a seamless integration is key.
This brings me back to my point about changing customer expectations that enable new customer experiences. Customer touch points were already shifting towards the digital world. The customer experience doesn't And with the checkout on our web page, customers expect sustainable and high quality products and services Delivered on time, which means tomorrow at the lowest possible price. The process starts long before the point of sale And ends much later. Just think about the 365 days return policies, IKEA being a good example of this.
This process is no longer a separation between front and back office. The customer experience Doesn't differentiate between front and back office. This is where SAP comes in. We bring all customer facing related processes With our CX solutions together with our market leading ERP solution SAP S4HANA. We additionally differentiate by embedding experience management In all moments that matter, it helps to get sentiment and feedback from the consumers to be able to delight your customer And instantly improve the business processes.
In the new normal, customers also want to be addressed Personally in their own personal regards. That is the reason why we have strengthened our portfolio with Emasis. We connect this leading customer engagement platform to our commerce and customer data platform. And in addition, we bring it together with our delivery and supply chain capabilities to provide hyper personalization At mass scale with a lot size of 1. You are able to provide individualized goods and services To your end consumer while connecting the personalization on both the front and the back.
Here, We can clearly see how the interconnection of SAP's broad portfolio is essential to making customer experience work. It's a merge in order to improve the customer experience end to end. However, it's not just the customer experience. With the intelligent enterprise, we actually cover the employee experience, the supplier experience end to end, redefining The categories with human experience management and spend management. SAP S4HANA is and remains the core There is no question.
SAP S4HANA is the most powerful, advanced We have a clear integration roadmap in place. As said, it goes far beyond just technical point to point integration. It focuses On the bigger picture, on business process integration with the foundation of our business technology platform, Integration ultimately enables business process innovation. And this is what the vision of the Intelligent Enterprise is all about. We leverage SAP HANA natively to deliver new scenarios which were not thinkable before, While also being able to simplify the application and data model, we embed artificial intelligence And machine learning in all our processes and provide active guidance and recommendations to our end users.
We already delivered more than 350 intelligent use cases for SAP S4HANA Cloud. But let's be honest, The pure play number of cases is not what matters. What matters most is how you, our customers, benefit by increasing productivity And driving process automation, combining the power of SAP S4HANA with SAP HANA artificial intelligence and machine learning Enables us and our customers to truly reimagine business processes. SAP S4HANA customers have seen new levels of speed and efficiency like 67% faster financial closing, 95% faster material requirements planning and many, many more. The prerequisite for all of this is fully digital end to end processes That allow a continuous flow of data in real time.
But data is useless if it's not put in the right business context. And this is where SAP's focus is. Unfortunately, we've seen so many companies talking about big data for years In a pure technical manner, but the value of data is realized when the right context and semantics To get the relevant insights to support the business decisions, especially during this pandemic, we all learned that immediate decisions And we need the right insights to our business, competitors and customers to lead us to the right decisions. This agility and speed is key to manage the unprecedented change each industry is faced with. Additionally, The boundaries between them not only blur but disappear.
There's an enormously high demand for innovation at the vertical edge. Our answer to this is delivering innovative industry solutions with our SAP Industry Cloud. It's an open innovation platform for our partners to support the transformation of the end to end value chain. With that, we strengthened the industry capabilities of SAP S4HANA even further. Let's take manufacturing industries As an example, with Industry 4.0, in the future, production processes need to be able to react way more flexibly to disruptions and market requirements.
For example, many of our industrial machinery and components and automotive customers are moving away from traditional line production And make to order offerings towards modular production and configure to order capabilities in a fully autonomous factory. Each component will be linked end to end throughout the entire procurement, production and supply chain processes as well as the delivery Mapped in a digital chain with business information such as engineering, supply chain and asset management data. We call this digital threat. We are realizing this in a partnership with Siemens. And this is just one example of our many partnerships in our vibrant ecosystem.
But instead of just talking about our vision, let's talk about down to earth realities. Let's do this by getting firsthand insights From our customer, Ollie Carre. Ollie Carre is a leading customer example for reimagining business processes By transforming the IT landscape, over the past few years, the company has undergone a significant transformation, which covers 8 end to end business processes. ORICA redefined its business process by consolidating systems on SAP S4HANA, Complemented by other SAP solutions and extensions. With that, I'm happy to welcome Gabriel Asali, Chief Transformation Officer Hello, Gabriela.
Thanks so much for joining. Can you tell us a little bit about ORILICA and the challenges and opportunities in your industry and what role technology plays in that?
Hi, Thomas. Thanks for having me. For Orica being in explosive industry, the biggest challenge is our Robustness and safety at our supply chain as long as as well as traceability. Our supply chain is actually very complex And it's across 60 countries where we have offices as well as to all our customers, which are in more than 100 countries. Hence, what we actually needed and what we now have is one platform all based on SAP products, All integrated that gives us full visibility and transparency of where and what products are actually traveling across our supply chain.
We know each other for quite some time, and I'm following very closely the Ulrica journey. And It's quite impressive to see the focus on the end to end business processes and the transformation with it. Can you tell us a little bit about the approach you've chosen?
Sure. Number 1 is that a business delivers value horizontally. Hence, you can only look at your business End to end. And secondly, the fact that the biggest inefficiencies in a company are at the endpoints between the functions in that particular company? Hence, unless you actually deliver the project and you think about the project end to end, You are going to actually miss this particular point I just made.
We have organized our project into ports. Each team was responsible for an entry end business process, and they're fully they had all the means and methods to deliver that entry end business process. We design, test and build into an entry end manner. We actually did UAT the same way our training materials as well as sports organization is all organized on the end to end approach. Now the advantages of that are besides the fact that we give an opportunity to every employee in ORICA to understand Where they fit in the organization and the impact of them doing a business process step or not doing it, it also overall decreased our project lifecycle Because doing and looking at integration upfront, it's actually eliminating a lot of surprises that you will have later If you would have approached the project in a modular and vertical manner, and we all know solving issues later in the project cost you in time and money many, many, many times more.
That's true. This is quite interesting because I see that The SAP Intelligent Enterprise strategy is exactly fitting to the approach you had for your end to end optimization. But how do you actually plan to drive business innovation on top of standardized business software? Some people think that there's a conflict between standardization And innovation, how do you tackle that one?
I think the way we started looking at what Ortega does is that we Investigated every function and trying to understand where do we want to innovate and where do we want to differentiate ourselves. Everything else had to be standardized. We actually look at standardization and also A very important simplification very thoroughly. And there are a few benefits that we see coming out of that, one is the fact that when you standardize the business processes, your org Structure becomes standard, meaning that people can learn from each other, training is much less consuming, And you can do really internal benchmarking. And rather than, I suppose, wasting hours and hours to find out what is it that you need to do, you actually Finish your work much faster and have time to think.
And whilst these tasks, as I mentioned, are not about innovation or Necessary differentiation allows a lot of people rather than firefighting and looking backwards of what The company has done, but rather looking forward of what is that is ahead of us. So we don't find standardization in any way to conflict with innovation and differentiation in actual fact is actually giving us
Congratulations actually to the go live across all the SAP Cloud solutions together. And also The first time that you actually closed your books with the entire new SAP environment. How does that feel like? What is different?
I have to say that our year end, which was only 3 months after we went live, it was hard. And believe it also wasn't hard because of the system. It was hard The amount of change management that we actually had to ensure that was in place. You have to understand that Rodica came from an environment where the Sales orders were in the system. The contracts in another system are in people's draws.
Fast Portfolio Management was on Excels And so forth. And all of a sudden, we are in the environment where data is online, available, and there is no place to hide. And I think from a system point of view, we did actually very, very well. Again, keeping in mind that our year end was only 3 months After we went live with the biggest release in the program.
Yes. So I really think that this transparency end to end In real time is for sure something which is an extreme benefit to really fix the problems at the source. And I've also learned actually that your products go digital and that bundling products with value adding services is a big thing in your industry. Can you tell us a little bit about that shift and how actually the SAP environment can help you succeed in this transformation?
Yes. So bundling, I think, is used by other companies already, but it's just something Not new to ORILICA, but something that we'll like to use more. So what's happening is that really the customer just understands and costs and gets delivered only the bundle, but internally to Orica, we do know, of course, what that bundle is made of. Now what has happened in the past in Orica is that it was very hard for us to understand where we make money. And of course, that is very important to run the company.
So now with SAP functionality, but also I suppose the power of the database and the performance that we can achieve, Orica can do very important tasks. 1 is to understand contract profitability. 2nd, to understand SKU profitability. And 3rd, to understand the service profitability, which in the past we could not.
So thank you so much. I mean it's again as mentioned totally impressive to see how this transformation actually helps ORICAR and totally Opens up new levels of transparency for the steering of the company and enabling new reimagined business processes end to end. So thank you very much for joining As you've heard, ORICA successfully embraced the intelligent enterprise. With that, they set the foundation To continue that journey to succeed in the future and it's indeed a journey. This is not an end state.
Continuous improvement and reinvention is key and you need to have a future ready platform to succeed. It's of utmost importance for us to help you to become an intelligent enterprise. That's the reason why we proudly announced today RISE with SAP, a business transformation as a service offering. With this offering, we take everyone with us, Independent of your point of departure, new customers who want to join the journey to the Intelligent Enterprise, but also our valued existing customers With a different legacy and history in their complex system landscape, independent of the industry you belong in, independent of the size of your company. We are with you every step of the way.
We leave no one behind and provide the flexibility which is required Independent of public or private cloud, RISE with SAP is a subscription based offering. It combines Key offerings to help you master the challenges and provide you with an agile and modern platform for future growth. 1st, Our intelligent ERP, SAP S4HANA Cloud. With the move to SAP S4HANA Cloud, You will be able to enable new business models and embrace reimagined business processes, increasing agility and improving the customer experience. 2nd, we included valuable tools and services to be utilized like migration services and custom code analysis to help you embrace The latest innovations.
3rd, the business technology platform for extensibility and integration in the intelligent enterprise To keep the core clean. 4th, the largest business network to think bigger about the interconnected world. And last but certainly not least, business process intelligence to analyze how your processes Perform the tailored recommendations and benchmark them against industry standards. In order to do so, we proudly announced the acquisition Of Signavio, with Signavio, we complement our portfolio to deliver Business Process Intelligence. And with Business Process Intelligence, you can analyze All of the data of your systems to understand how the processes run as a basis for improving the overall impact Of your application and process landscape.
It will not only give you insights into your business processes, but gives you benchmarks on how to improve it. And of course, we help you to execute the improvements because only then it's really supporting the full impact for your transformation. To help you on your journey to the intelligent enterprise, we are proud to have strong partners to support you in the best way. That being said, I'm happy to welcome Ulrich Stoeck, Chairman of the Management Board at PwC in Germany as a guest today. With years of experience implementing SAP products and co innovating on new ways to use our technologies, PwC will continually work together with us for your success in the digital economy.
PwC is not only a partner for us, They are also an SAP S4HANA Cloud customer. Besides sharing their experiences on their digital transformation, Let's hear hands on details on how we co innovate with our ecosystem and why our partners are an integral part It's a pleasure to have you here with us. So can you tell us a little bit about how digitalization is touching PwC and how you help to tackle this challenge in the industry?
Thanks for the pleasure of all of mine. And obviously, also we as an organization are in the middle of a digital transformation too. And we are investing obviously a lot into people. That's our strength. We don't have machines, we have people.
But also technology, I think the third one which is very important is partnerships and ecosystems. And I think that's the reason why we're also sitting here together today. We have skilled people, lots of them on a global basis and you have leading edge technology. And I think what is also important to understand, our clients expect that we bring these capabilities together. I mean domain know how with first hand deep technology expertise and leading edge technology now I think we talk also about The public cloud, I mean, people want to have faster, better, smarter decisions also to transform their companies.
Absolutely. And I think you mentioned it. We have a long lasting relationship and PwC for sure is a strategic partner for us. But I think what is also very important is we are not just a great implementation partner, But also actually we do co development and co innovation jointly together on the Business Technology Platform. Can you give us a little bit insight about what we do there together?
More than welcome. And I mean, there are so many areas where it absolutely makes sense to work together. I mean, We have deep domain know how, process know how, especially in finance, GRC, now sustainability. And I know that's also really at the heart of the SAP organization and to bring this knowledge together To jointly build products, I mean, I think that's a very smart idea because now we are actually able to Also brings fast and better solutions to the market and we are seeing how fast the world is moving, how fast technology is developing. And for us as a firm, It would be just impossible to do these large investments and then to have this really experienced partner with leading edge technology.
Well, it's just a perfect fit, Thomas.
No, and that's great. And I think we talked about the value added services we want to deliver to our joint Customers, I think one of the most exciting co innovations we have is actually touching the biggest challenge of humanity, which is climate change. I'm very glad to have you together with us in the Climate 21 initiatives. Can you tell us a little bit about the experience and expectations you have for that?
I think what the audience is not knowing, I think a couple of years ago, we met in Davos and the first thing we talked about was climate and climate change. And I mean, we as an organization, it's really a big topic for us too. I mean, nearly all of our customers are approaching us and asking How can you help transform and what does actually carbon neutral net zero means for our organization and actually our clients need, First of all, transparency is any information to make decisions and better decisions And to understand the impacts into their organizations. I mean, that comes together. You have the technology with SAP.
I mean, I would say many, many, many companies using SAP. You are already at the heart of many organizations and together with domain know how, reporting know how to combine This is really making CEOs, CFOs puts them into a position to make Smart decisions and if I remember correctly, Davos, you talked about a navigation system to really understand the impact Into the financial systems, into the operations from management decisions, I think that's what our clients are actually waiting for. No, absolutely. And
I think what is also exciting in this publishing relationship because it's a truly 360 degree relation. And PwC proves that S4HANA Cloud is actually suitable not only for small and medium enterprises, but also for large enterprises. Can you tell us a little bit about the rollout you have for S4HANA Cloud at PwC?
You see me smiling because this project is really one of the Biggest most important projects also in our organization, also in our lifetime. And we are more than happy to have such an experienced partner at our side, I mean, now we have about for the first phase, we're talking about 30,000 users. That's in Germany, Austria, Netherlands, Switzerland and so on. Wave 2 would be another 100,000 users on top For the U. S.
And the U. K, so you see it's very important. I mean we have also to step up as an organization. It's also asked about standardization as being a global organization, being located in nearly every territory globally And to make faster decisions and we are really grateful SAP for us as not just a supplier. We have integrated teams.
I think the first team was 200 people working really closely together helping us to standardize our processes And then putting very individual applications on top. I mean, that's what our clients are asking for. And obviously, we are asking for and Only can say it's a perfect fit. The feedback I get from my organization, but also from you guys is Really outstanding Lighthouse project. And we are pushing to go live 1st July and all lights are on green.
So
I'm already very much looking forward to that one. What is also interesting is for short is that the deep co innovation and collaboration with regards to the business technology platform and the And many topics like the SAP Industry Cloud, like the GSE, so a lot of topics which we bring together in this partnership For our customers to help them in the disruption we face in this current pandemic. So what is next on the
I mean, like you mentioned, our clients are asking for cloud solutions. So it was also natural for us. We are on a transformational road. Everything in our PwC world is going into the cloud. And I mean, that's what we're seeing also from our clients.
You have to be into the cloud in order to be innovative, to use latest technology, to be open. We talked about ecosystems and therefore it's a natural step and to go this path With a tech partner like SAP, it's for us an outstanding experience. And being able to co innovate together with you guys, I mean, that's So thank you
very much Ulrich for joining us. It's really inspirational to see how you embrace the business transformation with our own software, but how you help our joint customers together. So really looking forward to the great expanded partnership. So thank you very much.
Thanks a lot, Thomas. And we are looking forward to a very successful partnership and even expanding. So thanks a lot.
Absolutely. Thank you very much. Now let's see what we can do together to stay ahead and what is coming next. It's absolutely obvious that we are in a fully interconnected and networked world. And that's the reason why we want to evolve from the intelligent enterprise To network of intelligent enterprises.
We bring together all the networks from the logistic business network, the procurement network and our asset intelligent network To one unified SAP business network, connecting more than 5,000,000 trading partners together to provide you with the flexibility, Agility and transparency beyond company borders. With that, we truly establish a multi enterprise business Because also in today's world, we need to think more meaningful about relationships and collaboration. And that's something we want to simplify with the business network. I'm also excited about our expanded partnership With Microsoft, as you've already heard in the session with our CEO, Christian Klein, we will embed Microsoft Teams as the collaboration platform in our applications, bringing the market leading business applications together with the market leading business collaboration platform. This adds another key value driver to our intelligence suite, collaboration.
And with that, We will give every company the opportunity to connect more impactfully with their employees, customers and partners. Collaboration always and everywhere can only be achieved through the power of mobile. According to Gartner, 70% of software interactions in enterprises will occur on mobile devices by actually end of next year. With our SAP S4HANA Cloud released in February, 90% of our UIs will be usable through mobile. We will deliver a central entry point for our entire mobile portfolio across the intelligent enterprise Via our SAP Mobile Start application.
Our vision is to extend this into the business network To enable our customers to interact seamlessly with one touch. The next generation enterprise software is not just networked. It's not just collaborative, but it's also sustainable. Consumers are demanding ethically sourced products That are designed, manufactured and delivered sustainably and responsibly. 45% of consumers say That they are making more sustainable choices during COVID-nineteen and will likely continue these habits in the long term.
And that's good for both the planet and the profit. Decision makers are realizing that those dimensions Are no longer contradictory, but rather mutually beneficial. Accenture 2020 research shows Highly sustainable brands are growing at twice the rate of other brands. We are on the edge of reshaping how financial and business decisions are made. We are moving away from pure technical and financial definitions of success.
Let's add to the top line and bottom line Also the green line. Software can support and accelerate this new definition of success. With Climate 21, We started already beginning of 2020 to start a movement and we are embedding sustainability metrics such as CO2 emissions Natively in our analytical and transactional applications. And with that, customers are able to understand the impact The products and operations have on the carbon footprint to analyze and ultimately minimize it. Transparency about the carbon footprint Can also be passed down to consumers, enabling climate responsible buying and consumption.
As software has an impact that goes far beyond the 4 walls of It enables us to minimize the carbon footprint, not only of individual products and companies, but of entire supply chain. So we target scope 1, 2, but also scope 3 of the greenhouse gas protocol. Only software can have this multiplier effect In our highly interconnected world, if we imagine that our 440,000 customers limit their CO2 emissions just a little, What an impact that would have in total. We not only see us uniquely positioned with our portfolio which goes end to end across the value chain But also our obligation to help and enable each customer in this endeavor. As said, The post pandemic won't look like pre pandemic.
The new normal today is just an interim status towards the next normal we need to master. We are in this together. We want to help you on that journey as your strategic and trusted partner. And as mentioned, We will not leave anybody behind. This always has been the case from R2 to R3 to ECC and to S4HANA.
We deliver continuous innovation to support the business transformation. The next generation of enterprise software is intelligent and integrated, Network, sustainable and collaborative. Ladies and gentlemen, thank you very much for listening. I'm excited to be with you in this. Let's jointly reinvent how businesses run-in the next normal.
Stay safe and healthy.
Ladies and gentlemen, welcome to RISE with SAP. I think most of us can say we have been looking forward to 2021. During our recent SAP TechEd event last fall, I described In this session, I will bring the conversation up a level and showcase the business value that comes from it. Within every company, there are different departments that need to work together to achieve their global objectives. But they can too often become conflicted with divergent priorities.
We saw this in many examples during the pandemic where We see our customers having the same challenges over and over again. They relate to integration, to Getting value out of data into extensions. And businesses too often really become obscured With disconnected data, disconnected logic, disconnected processes. Let us take a very basic example. Imagine we set a company wide objective to increase cash flow.
Each business area Might take a different approach to this. Marketing might try to increase net sales through advertising, Yet this could require an increase in production and therefore needs additional headcount, additional material expenses and even may require taking on debt, All of which can have the opposite effect if the right balance is not found. Finance could try to delay payables, But this would affect relationships with our key suppliers we need for production or maybe finance would sell a fixed asset to quickly increase cash flow Without looking at the long term impact on the business and the list of scenarios is endless, teams really need to work together. So how does SAP Health provide the right environment to achieve company objectives both at the macro level, But also at the micro level. 1st, integrated systems are a precondition.
And then we need to be even further by offering a consistent platform layer for both the creation And consumption of innovative scenarios or intelligent processes such as lead to cash, source to pay, Recruit to retire and design to operate. The SAP Business Technology Platform provides this foundation With live connectivity to operational systems, business security, cross LoV authorization, APIs and much more, It can dramatically reduce the need for expensive tooling required to integrate data sources and it can simplify your IoT landscape. For example, one of our customers, Eneco, a utilities company with about 3,000 employees, over €4,000,000,000 in revenue, was able to cut down IT spend For their integration middleware by around 50% of their TCO in a matter of weeks. And we want to empower our customers and give them choice so that they can leverage the strength of a wide range of infrastructure options With our partners, AWS, Microsoft Azure and Google Cloud and Alibaba. And in fact, our offering is constantly expanding As you will see an increase in the number of services and locations during 2021 beyond.
Step 2 actually is to provide a singular data view for all lines of businesses in the company. Data needs to be accessed at scale and speed. Many companies today actually are trying to just move all data into a data lake. Challenges they face when doing this outside the SAP technology is that they lose out on security, On data context, on semantics, on auditability, on access control, and it is hard to trigger the respective actions in transactional systems. In contrast to standard datanax, we provide federated data access with SAP HANA Cloud.
And when designing and building HANA Cloud, we had in mind that there will be various data sources And we cannot move all data into one place. We can federate data or replicate it if it's really necessary, While maintaining real time insights into all end to end processes, whether they run on premise or they run-in the cloud. In addition, SAP's one domain model enables out of the box integration with consistent information on data semantics and relationships Between objects and you really can have one single source of truth. Next, we need to apply business logic and content to this one data view, Because just having the data consolidated and Align does not deliver an intelligent enterprise. To understand what will happen in the future Or how we will optimally achieve our objectives, we need to understand the business logic that will drive transactions and operations in the end.
Only then we can build intelligent end to end processes. For example, the lead to cash process runs across multiple systems, of course, and therefore, requires a common understanding of the customer object, the cost center and more. But the business process also changes in context of industry and country. SAP provides that out of the box With our software as a service solutions and no custom modifications are required. The SAP Business Technology Platform is the foundation of an intelligent enterprise.
It's the engine for end to end processes And collaborative enterprise planning. Simply moving data into a data lake and hoping for the best that it will yield some results We'll not maximize the potential to turn data into real business value. The three steps that I have outlined We'll enable our customers to achieve their objectives far more effectively with an unprecedented alignment Between all the areas of the business, we clearly see the need. Now more than ever, Businesses are increasing their investment into cloud technologies to help them become more agile. For example, the market for analytics and intelligent technologies Is growing at roughly 40%, and it's growing even faster within SAP.
And one customer that perfectly highlights How the SAP Business Technology Platform can transform its business is Uniper. Uniper is an innovative energy company operating in 40 Countries and Uniper is quickly transforming itself into an industry leader in the cloud. It gives me great pleasure to invite Damian Bunyan, CIO of Uniper. Damian, thank you for joining us. But before we get started, I would really like to congratulate you on being named in 3rd place in the list of CIOs of the year by Computerbocker.
I know you are very humble, But it shows how you and the team really transformed Unifor. And that's quite an achievement and reflects on the changes you and the team really have been driving. Maybe you could tell us a little bit about your journey with Unifor.
First of all, thank you for having me. And Yes. I was flattered when my team nominated me for the award, but it's important to me that it's really seen As a company achievement that the team achieved. And in essence, it's really a very simple story How we moved our IT estate out of Where it previously was as we belong to the Aon Group and once we became independent, we effectively moved 100 Almost 100 percent into the cloud. And that has helped us achieve more than I ever thought would have been possible And has given us the basis on which we can truly think about digitalizing Uniper and what we do.
Yes. Damian, To achieve that in a matter of years must have required a massive effort. What do you see as being the key drivers for this success?
I can probably say 3 things. The first one to an extent you've already touched on, We were given a like a burning platform. So we had to do something. So instead of debating, do we like the cloud? Is it more Is it cheaper?
Is it better? We didn't have that. We just had to move. And having the deadline For an IT team is a real gift. No debates, we do it.
And actually, I think if we'd even brought the deadline forward a bit, we would still have hit it, but we hit the deadline that we gave ourselves. The second gift I think we gave ourselves was to decide at the beginning, we would only move towards 1 public cloud. So rather than having many discussions, is it this one or is it this one or is it this one, We chose a single cloud. If I'm honest, I don't think we've mastered that completely, but we've freed ourselves up from this Hybrid world of this one, this one, this one. Thirdly, but maybe it's the most critical point is the people.
You need people who are brave, They prefer to take a risk and they have the curiosity as technologists how what am I going to do in the future given that there really isn't anybody around me You can tell me what it is that I need to do. So that will be my they will be my 3 points.
Thanks a lot, Damian. And I think that also resonates with other customers I am speaking Having a clean core, keeping TCO low and then having a solid basis from which one can then extend. Earlier in this presentation, I have been highlighting how SAP can help our customers achieve their objectives across operational systems. What is Juniper's overall objective?
Since we broke away from being part of The much larger Aon organization originally we were even maybe as I described by some in the press as Bad bank of the energy world. I don't think it's necessarily a bad thing that we produce electricity and that we Help our customers keep warm with natural gas, but the world is changing. And we have Decided that our place in the energy space is through what we call empower the energy evolution. So we take our skills and our people and we enable society to deliver the energy world that's required. And at that point, Technology plays a central role.
We can only do that by deploying the most appropriate technology Everything that we do.
That is great to hear, Damian. And as you know, SAP really has Now are there any innovations that we will see in the near future coming from Uniper?
I see this as Two things, particularly in combination with you at SAP. I haven't finished or we haven't finished Making sure that the basis is as good as it possibly can be. I do not know how a CIO can drive big data Or run IT security on the kind of old infrastructure landscape that we have. If I am going to compete With new modern startups and if I'm going to protect our data properly, I need to make sure that our house is in order. And yes, we're in the cloud, but there is so much more automation that we as an IT team can benefit from If we drive those things properly, so we have this continuous desire to move up and up and up in terms of our cloud Our cloud ability.
And it's pretty much the same in our day to day business. We need to as an organization automate Everything that is possible to automate, because in many instances, the computer can do the job even better than we do as humans. What that does is it frees us up as humans to start doing things with our time that we couldn't think about before. And that's where The data comes in. So we have 2 major use cases running our power stations as effectively as possible.
You might choose to call that IoT. You might choose to call that plant maintenance. And similarly, when we trade and transact Around energy, we start using algorithms based on the data and the infrastructure we have to learn things that we as humans Simply part learn and to remember them and to deploy that learning such that we give Uniper And universe customers and in that case, society benefits that it couldn't enjoy in the past.
Damian, that is great to hear. And you are driving home this point of everything in order. And you had a certain sequence in mind when you started that journey. Can you share a few more sentences around that?
I mean, you may be flat to me that I might have had a sequence. When we started, we weren't really sure. But for sure, Jurgen, I can speak German. My favorite German word is. How can you possibly do big data or machine learning or IT security when you don't know what you have?
And to be honest, When I started our cloud journey, I asked the question, how many applications do we have? Because I need to get them all out of the data center. The answer was approximately 900. You can't use the word approximately and augment in the same sentence. And all the way through, even till the last day that we exited the data center, we never fully knew what we had in it.
We've lost Control. But now I'm in the cloud and I get my invoicing per minute or per second, I have much more clarity of what I have. And if I let you into a secret, I have 33% fewer applications than I did when I was on premise. Because when you say to people, I need a bit of money, A new UAT time to move it, a number of people, 33% said, forget it. Again, how can I do big data if I don't know it?
The next thing, which seems really silly, it's To say the hardest thing to move out of the data center was the data because it's difficult to find an owner. You don't know who puts it there and you can't for sure find anybody who says, oh, you can delete that. So the hardest thing to move was the data. If I go back and do it all again, there's one thing I'd probably do a little bit differently or move up the merit order and that would be the network, Because I've now got different applications hosted in different places, all of my workforce is at home and the way that we communicate And get to that data from where we are to where it is, isn't what it looks like at the beginning. But for sure, I feel much more comfortable as a CIO knowing what I have, where it is and who has access to it.
Thank you again, Damian, for taking the time, Share your valuable insights and stories from Uniper. We wish you and Uniper all the best for this year. And we will be there to support you also in bringing these innovations to life. Thanks again, Damian, and talk soon. You're welcome.
Thank you, Gary. Thank you. As we just heard, Uniper had the opportunity to make a hard cut And take a 100% cloud first strategy. But many companies and customers are not in a position to take such an approach As they have investments that are still providing a lot of value on premise, it's clear that most innovation occurs in the cloud. That is why we are delivering the required functionality and also enabling hybrid extensions to make the transition as smooth as possible.
For example, SAP HANA Cloud provides simplified integration and live use into HANA on premise. The SAP Adaptive Server Enterprise Services drive faster, more reliable online transaction processing at lower TCO, While ensuring business continuity and data security. Also, the data lake in SAP HANA brings IQ capabilities This means our customers can move their on premise workloads to the cloud. SAP Analytics Cloud Makes it easy to extend BusinessObjects DI capabilities or on premise planning functions. We even have an ABAP environment in the platform so that our customers and partners can run their existing IP Directly in the cloud.
And remember, across all of these solutions, we offer consistency of process And security. But let's not forget that moving to the cloud normally requires a team effort, Which leads me to the next topic that I would like to cover. For the past 8 years, over 16,000 customers named as a leader in both the 2020 magical quadrant for enterprise integration platform as a service And also for multi experience development platforms. Our services organization now has 19,000 professionals Building on the platform is everything we will do now revolves around it. Last year, we introduced the business
technology platform. We saw
the need of providing a We saw the need of providing a unified experience for our partners, for our customers and for SAP, Not just for integration and extension, but also for database and data management, for analytics as well as planning. The Business Technology Platform is central to SAP's strategy as the platform for SAP's own cloud product Like our intelligent suite and our industry cloud. And now it is also time to sunset the SAP Cloud Platform product name To avoid confusion with the SAP Business Technology Platform trend, while the actual cloud platform capabilities Renamed, for example, from SAP Cloud Platform Integration Suite to SAP Integration Suite, The products, of course, continue to be available and the services remain as important as ever. Also, we have a lot of partners engaging with us around the Business Technology Platform. And we are elevating the entire ecosystem so that customers will have an unprecedented choice of end to end solutions.
And the platform will fundamentally change how we work together, thanks to faster innovation cycles, faster adoption And faster implementation of new business models. Now our partners are engaged in the entire customer lifecycle as well From development to deployment to continuous innovation, we are very lucky to have such a vibrant ecosystem That we can rely on and that our customers can rely on. On this note, I would like to welcome Liz Fastiana. She is global SAP Offering Leader at Deloitte. Thank you for taking the time to join us today.
Deloitte and SAP have a special relationship centered around customer success. What do you think has been the biggest shift in our customers' expectations over the past year?
Well, Juergen, it's great to join you here today. And certainly, we get a lot of feedback from our clients about what they want. And the 2 primary things we hear most from our clients is they really want to in this current world we live in to enable business agility and get speed to value. So they're looking for results, right? And so they want to solve business problems like they always have, But the journey is a bit different in the midst of COVID.
People are working in a different way. The automation is even more important To enable people to do their work in different ways. And of course, having everything available on the cloud is sort of a fundamental Ask from those clients. They want to do more with their resources. They want to enable them by the digital platform, and they want to have Automation and Intelligent Processes.
We also find that they're asking one simple question, Why change, right? And so that's what we're trying to answer. The journey is going to look different for each and every client. But we need to help them and they're looking for us to help them drive that digital strategy that they have with the technology enablement that SAP
Maybe you could give us a brief insight into how Deloitte is leveraging the SAP Business Technology Platform To help answer the question, why change?
Yes. I think it starts with the foundation, right, Juergen? So at Deloitte, we have what we call the Kinetic enterprise strategy that has 4 fundamental elements to it that the architecture is intelligent, Responsive, clean and inclusive. And I'm going to describe those four things in a minute, but it's important to know that SAP's business technology is at the heart of that architecture. So if we just talk about those very, very briefly, what does intelligent means?
It means it's an open platform where analytics, machine learning and other technologies can be utilized against that core data platform that SAP provides. And we can get rid of non value added work because it's being automated. The second component of that is really about responsive, which means that we need it to be cloud enabled so that we can go up and down based on demand And the capacity that we need. Thirdly, operations and the data need to be clean. And we've been Talking about clean for a long time, but it's a challenge to get there as you know.
But we're helping clients get 90% clean in the core And that is adding tremendous value to them by eliminating all that old technical debt. And finally, the applications need to be inclusive. Right there is amazing technology that is in the marketplace today and we can very easily now hook that up into the SAP platform. So we're super excited About the platform being inclusive. And to us, it's as simple as that, that it's the Connecticut enterprise is about continuous
That sounds great. But what has been the reaction from customers so far?
The reaction has been extremely positive, Juergen. And it's Because of 2 things, one is that they get to adopt the platform that brings the strength of what SAP journey, right? This isn't a one step process, right? If you're going to continue to evolve, as we say, You're going to take multiple steps on that journey. So what we think about as the platform is the base for them to be able to continue to evolve at that and we see that rides with SAP will help it make easier to customer to adopt it and together with our Kinetic services offering.
True, Liz. However, we know that digital transformation is not always easy. What are the challenges that you see our customers
Yes. So really, the main thing is all the choices they have, right? Even within the platform and the products As well as how that fits into what's available in the marketplace. So they're really looking to us to help them navigate those choices. So that's probably the first thing is, let's Help them figure out how to navigate that complexity and figure out why they should transform ultimately, Right, because if you're going to get value from this, you need to focus on the why.
And so we have a tool called the stakeholder value map. I won't go into a detail, but really it's just an approach to take a top down view of looking at the business saying for each area what is the value they Create the value scenarios that they can use to enable the business case and use those kinetic drivers. But it also thinks about all those edge solutions, the other innovation that we can bring together with the core SAP platform.
Yes, Liz, that's a great closing point. Again, thanks for joining us today. I'm feeling very optimistic that together we can truly help our customers not only to overcome Some of the setbacks of last year, but even to exceed expectations. I wish you all the best. Talk soon.
Bye bye.
Thank you.
We are happy that we have a growing development community And are expanding our offerings to a wider range of makers from cloud native developers To architects, to UX designers, to business users and more. We provide a seamless transition From pro code to low code to no code. And there are clear advantages for developing business applications On the SAP Business Technology Platform, including development education, best practices, business content, Out of the box integration, reduced data movement and the list goes on. In fact, the SAP Business Technology Platform demonstrates The lowest total cost of development for any SAP data or process related development task. We know from many customers that the platform increases their application development productivity in double digits.
You're more than welcome to check out those references And in addition to a unified product experience, a seamless commercial experience Is essential as well. To provide the most flexible and simple access to SAP Business Technology Platform Services, We continue to optimize our offering and pricing. Our enterprise agreement called CPEA is the preferred consumption based commercial model. It provides our customers complete flexibility to turn services on and off And to switch between services as their business requires it. As part of RISE with SAP, SAP S4HANA Cloud now includes CPEA credits, which will make our customers' transition to the cloud even easier.
We have great SAP SaaS solutions that deliver best of breed capabilities in their respective lines of business. However, we know that most customers will look to extend what comes out of the box as well. And that is why we are now offering The SAP Business Technology Platform with the pay as you go model, in addition with SAP Ariba, With SAP SuccessFactors, with SAP Digital Supply Chain and SAP Customer Experience Cloud Solutions, it will provide our customers access Through all the business technology platform services, but with a highly flexible zero commitment model And no minimum usage requirement. So for our customers, it doesn't matter where you come from. We will help you achieve your objectives.
To summarize, I would like to reiterate the 3 most important points from my presentation today. Number 1, we heard from Damian, based on a clean and solid foundation that provides business context. Simply moving data into data lake, for example, is not enough to build an intelligent enterprise. We can provide our customers with a clean core With business context, while still having the choice of the infrastructure, they can even run a hybrid landscape. Number 2, we heard it from Liz.
Agility is key to thriving in this current environment. Understand what is going on today And what will happen in the future before executing on any strategy or specific process. It is possible today to effectively coordinate across lines of businesses to achieve optimal outcomes. We provide analytics for visibility and the necessary planning capabilities. And number 3, very clear, business value.
Our customers can achieve the lowest total cost of development while developing or Value generating innovative service scenarios and services faster than ever. This is what we can achieve when we work together. The SAP Business Technology Platform is business centric to help customers achieve their objectives. It's open With all its capabilities, customers can easily integrate their solutions, go from data to data value And extend applications to build intelligent end to end processes. I encourage you to visit SAP.com/ BTT to learn more.
To our customers, if you would like to understand which intelligent processes could be built And what the business impact would be, I encourage you to check out SAP Business Process Intelligence. The session with Luka Mutzic and Rufe Murato provides a great overview of the solution. It will help you design and simulate your future processes Based on the finding from your current operational data. Also, please make the most of your CPEA credits And request free access to the process discovery capabilities. You will quickly see the full potential Of our business technology platform.
And with that, I want to wish you a healthy and successful 2021.
A warm welcome from my side as well, and thank you for joining. Today, I'll walk you through how we're accelerating the journey to the intelligent enterprise With SAP services in our ecosystem, we're seeing digitalization gaining speed worldwide. Societies, companies and individuals are all demanding it. That means our customers want to realize the business value of their investments in SAP fast. At SAP, we're addressing this by focusing on creating valuable experiences And outcomes for our customers jointly with our partners.
We're enabling businesses to transition to the cloud. SAP Services in concert with the ecosystem is our customer's trusted advisor, the red thread that holds the book together. Our ambition is to continue amplifying and enabling our ecosystem and ensure scalability of our customers so they can focus on running their business, A holistic business transformation involves reshaping the entire culture and mindset of an enterprise. It's about redesigning companies' business processes and adopting new technologies to truly transform a business. Companies need a holistic offering.
They need Business Transformation as a Service. Today, you're hearing from our CEO, Christian Klein, that we're launching a new offering, RISE with SAP. It's the foundation for the intelligent enterprise. It's a single offer on a single contract that provides a path for every customer tailored exactly to their business needs. All of this with reduced TCO and fast time to value.
Our customers can decide when and how they migrate to ERP to the cloud, public or private. So one offer, one contract, one responsible party for SLA, operations and issue handling. It's just not another upgrade. It's a new way of working, a simpler, easier way of doing business with SAP. It's not just about cloud.
It's about business transformation as a service. We understand how mission critical your business processes are. That's why we're investing to embed further automated services. We make the migration out of your IT landscape to the cloud happen With fast time to value, near zero downtime, and we do this by offering tools and services complementing our partner offerings To accelerate our customers' time to value, let me explain this a little bit more in detail. The service offerings for RISE with SAP includes embedded tools with every subscription that are 100% automated And 100% self-service.
This includes our SAP Learning Hub, the premium online learning platform for SAP technical and project professionals. It also includes SAP Readiness Check, best practices guidance moving legacy systems to S4HANA And the custom code analyzer, a tool that performs automated checks to identify custom code that requires migration. In addition, SAP Services has bundled discrete services into 3 separate optional packages, each to achieve a specific outcome For our customers, these packages are optional and can be attached to the RISE with SAP offering as needed By our partners and customers. And here's what they comprise of. Firstly, the run package.
The business outcome is the movement Of our installed base customers to go live in the cloud. Secondly, the outcome of the optimized package We'll transition our installed base customers to S4HANA or enable new customers to go live on S4 adoption of the CleanCore. Lastly, the innovate package. This drives accretive business value with innovation on SAP Business Technology Platform. SAP's embedded tools and services as well as our S4HANA Accelerator package to get started in the cloud complement our partner first approach to RISE with SAP.
The services components are designed to be discrete and non competitive with partner offerings. Both partners and customers can purchase and consume The attached packages in the future, these can be sold through partners as well. These tools and services from SAP will support the Our journey to the cloud, the focus of SAP Services is to enable our partner ecosystem. By helping their capabilities to scale in the cloud And to serve our customers globally, our ecosystem experts together with SAP Services teams are ready to help our customers move to the cloud Regardless of size, regardless of location, we're here to serve all of our customers. And with that, it's my pleasure to discuss this further today With one of our top partners, Accenture.
So it's my pleasure here today to be with Casper Borsgrave, Senior Managing Director and Global Leader of the SAP Business Group at Accenture. He is someone that we partner with consistently. Hey, Casper, so excited to have you here today. How are you doing?
Hey, Shane. Thanks for having me today on behalf of Accenture. Really excited to talk about RISE with SAP and what we're seeing in the marketplace right now with our clients.
So Casper, I mean, you and I know each other pretty well. We're always out there in the market together. What's kind of interesting to me is Accenture's story is one that Internally, it's probably not well known. And as you look at RISE with SAP, you guys were actually at the forefront of that because If correct me if I'm wrong, but you're already underway on that journey. Can you talk a little bit about that?
You're right. Accenture itself is really quite S4 story and cloud story, we run about 95% of our workloads On the public cloud, and we have a multi cloud strategy across Azure, across AWS, around Google Cloud Platform, S4HANA, we're about a $45,000,000,000 company. We operate in over 100 countries around the world. And It's proven to be amazingly resilient for us, Shane, especially under COVID. And we discovered How quickly we were able to make changes that we need to make, the agility it provided us.
We took a 2 step approach. We are legacy ECC user. We went to HANA and then we went to S4HANA and we felt tremendous about how much flexibility the cloud and S4HANA Enabled us. And I also want to add, there were some principles we followed when we took our journey to S4HANA in the cloud. We took a cloud first journey.
And when we say cloud first, what we really mean is all of our applications, our services, The design built and optimized to run on the cloud. We thought about security. I've already talked about multi cloud, Portability, demand optimization, simplification, having a clean, clean core. We also use the SAP Cloud Platform For innovation, and finally, intelligent automation and running as a utility. So we are, I think a great story around S4HANA on the cloud.
As you walk through your story, I think it is something that is a direct parallel To many of our joint customers across many different industries, I want to hone in on one thing that you said, and it's the concept of a clean core. So one thing that we've done with RISE from an SAP perspective, we've actually embedded some tools, tools for the ecosystem like yourself to use, Tools for our customer. 1 in particular is a custom code analyzer. And I would love to get your opinion on this as well because What the custom code analyzer does, it enables us to go into an ECC environment and actually take a look at where the customization lies And if it's actually being used. And what I've seen in the market is about 2 thirds of the customizations that have been put into systems, frankly, aren't even used.
I would love to understand a little bit your perspective what you see at customers. I'd also like to understand your journey from an Accenture SAP standpoint. But ultimately, as one of the largest SAP integrators in the world, how do you treat the concept of CleanCore? And how do you think as customers go through RISE and go into the cloud and into Sfour, how do they get back to that standard?
You're making a tremendous insight around the importance and the criticality of having A clean core. And when we say clean core, what do we mean? We mean getting back to a standard, A business standard, like the absolute most minimal changes to Common process, only configuration, no customizations. And what we've seen over time and with so many Of our mutual clients, Shane, running SAP now for 10 years, 20 years is that it's a matter of Acquisitions, divestitures and frankly, it's hygiene. And to have that clean core Allows our clients to move easier to the cloud and to really have so much more Agility and lower their TCO.
And so this notion of a clean core is critical. And it's critical to Also to like as you were saying agility and innovation, we absolutely believe that SAP's Business Technology Platform, SAP Cloud Platform, Analytics Cloud are the places to innovate. That's what we're seeing. Are you seeing some you mentioned, Shane, yourself, you're seeing similar things. What's SAP's view on the CleanCore?
Yes. It's kind of interesting. When we go and work with customers, we're seeing A desire to go back to standard. And going back to that tool, the custom code analyzer, it's just an empirical way to sit down and have that conversation. And they can sit there and go, well, why do we have this customization when there's something standard in the system?
And when you think about moving from a legacy environment into S4, It's not about boiling the ocean. It's about being hyper specific about what matters. And effectively, what customers are doing is they're saying, okay, Why don't I go through and we can use, let's say, SAP Cloud Platform and take our customizations and move them there. And we can actually create a very standard interface in and out. And then we can go back to standard within the core.
So effectively, we have a strategy now where you can keep your core very clean, upgrade ready, rapid deployments reduces all your cost of ownership, Cost to serve your internal customers as well as the P and L as a whole. And then you have all of your customization customizations in a very Standard environment on the cloud platform. And ultimately, it takes a little bit of time in the sense that You go and take a look at the customizations. You get them on the platform where you need them. But ultimately, overarching, it's a cheaper way, a more effective way to get to market with Sfour?
As I take a look at RISE with SAP and Casper, you hit a very important point around total cost Ownership and that is one key tenant of what RISE can do. But as I look to Accenture, where I admire what you do with our customers or joint customers every day. It's the industry knowledge. How do you think that RISE is actually going to be a boon the entire customer base to allow them to rapidly adopt more industry input and functionality, I would love to get your point of view on that.
I think what's special and what I am excited about and I think I know that the ecosystem is going to be excited about with RISE with SAP is what it is really, which is packaging SAP's flagship S4HANA clean core with world class Infrastructure from the hyperscalers, plus some of the other tools and products that you were just mentioning, Including the code analyzer. And at the end of the day, Shane, it's not just about TCO, as you said, it's about business value. And for our clients, The currency is always industry. It's the lens that we apply to all of our As for business transformations and we talk a lot about the cloud, we talk a lot about technology, but at the end of the day, we're seeking to drive differentiated capabilities on the cloud. And when we think about the cloud, It's not just technology.
There's a value strategy there. There's an application strategy. There's DevOps strategy. There's an operating model strategy. So there is a true business value focus as we're thinking about new ways of working and the new capabilities that we're going to light up in S4.
And whether you're a consumer goods company, a retailer, a chemicals company, oil and gas, Defense, utilities, I mean, that is, I think, what is absolutely different and relevant about S4 And the business technology platform and the new set of industry clouds that we're co innovating and co developing together.
I think you hit the nail on the head. Industry is what matters. That functionality is the differentiation point, and it is exactly the sweet spot of SAP And Accenture. One thing that I've been thinking about, I would like you to kind of take your Accenture hat off for a moment, Think about RISE as it is, but kind of talk from the position of just the ecosystem at large. What do you see as the value of RISE for the entire ecosystem, not only just the Essentries of the world, but think about The smaller boutique shops or even the Tier 2, Tier 3, and because To me, I look at this and I go, this is going to unlock immense value for the entire ecosystem.
It's going to unlock immense value for all of our customers. So can you kind of speak as an ecosystem partner what this means to you?
What I think is new and interesting About RISE is exactly what you said, which is, SAP really opening up its environment and the network effect that I know will be generated and already has been generated. So I think that RISE is really going to be instrumental.
What's something that you would advise, not just an SAP customer, but any customer through 2021 Based on all the learnings that you took away from last year, what good advice do you have for all of our customers?
If 2020 Proved anything, it's that we need to be prepared and better prepared. I think a lot of Our mutual clients and customers found themselves not as prepared as they would like For the humanitarian and the economic crisis and business crisis that COVID imposed upon all of us. And looking back at 'twenty and what we can learn into 'twenty one, it's about having a plan and being ready and being prepared To address and moving to S4HANA, moving to the cloud, it can be done incrementally as well. So taking some first step actions, creating a roadmap, creating a benefits case, a value case, creating a stepwise approach about The journey to a modern architecture, a clean core. I mean, that's the one hack, which is it doesn't have to be A long protracted multiyear investment.
In fact, some of the commercial aspects that RISE is also going to provide our clients, it's really I think we need to think about being more portable, more segmented, more rapid To value. So, we encourage our clients to think about how to get going and get moving In a really pragmatic way.
So I think that's really sage advice. And if I was to kind of Think about the same. I think about our experience together, right? So you and I are the executive sponsors at a large apparel company. And if I was to share one hack, I think it's the power of us together, whether It's SAP Services and the Ecosystem.
I look at some of the technical expertise that we bring to bear Paired together with your industry knowledge and it's a win win for customers. And if you take that pairing and put it on what you just shared, which is A bite sized approach being measured in what you do focused on the main thing, Then I think it's a win win scenario for the customer and that's what matters.
I love that hack. And I couldn't agree with you more, Shane. I've enjoyed and you know this, I've enjoyed working with you personally. And our partnership now with SAP goes back over 40 years. It's built on authentic trust, Co innovation, co development, our co go to market.
And what I've seen working with you personally is, It's always about the client. It's always about the customer, right. And that mutual and shared, I guess desire. So your hack is awesome. I love your hack.
Casper, I will say that
at the end
of the day, The customer is all that matters. And every time that we work hand in hand with our entire ecosystem and Accenture specifically Positive experiences across the board. So I just really would like to take the time to thank you for this opportunity today. I think that it's been very valuable for our customers. And I wish you and Accenture and our customers An amazing 2021 with RISE.
Thank you so much, Shane. And again, it was a pleasure to be here. It's always good to see you. And on behalf of Accenture and our 65,000 women and men who wake up every day and think about our SAP clients, thanks.
Hello, everyone, And welcome to the steep dive of the RISE with SAP event. This session will be about reinventing the way you run your business, In particular, your business processes. Companies do face a steady stream of challenges these days, Starting with market and customer requirements that continuously evolve to employee expectations that change as well. And obviously, most recently, the COVID-nineteen pandemic has added yet another layer to these challenges. The speed of change is accelerating now more than ever.
And as a result, companies Are under increasing pressure to reinvent not just what they do, but also how they do it. Adapting to constant change It's at the core of every business transformation. But where exactly can companies best realize their transformation potential To rise above their status quo. This session will look at how to tap into the potential of business process transformation, Because this is where the value creation happens. Why?
Well, simply put, processes are at the very core of every business. They span across the different departments of the organization. In R and SAP's vision of an intelligent enterprise, These processes are not set in stone. Instead, they evolve with market conditions. Feedback From various sites is translated into processes that run smoothly along the entire end to end business chain.
They are also highly automated by utilizing intelligent technology. And of course, they are continuously assessed for further improvement opportunities Based on data analysis. As a result of all of this, companies can deploy their resources more effectively. These processes allow them to focus on high value tasks and on driving innovation. However, If we're honest to ourselves, today's reality paints a very different picture.
And I'm sure you can relate to what I'm about to say. Today, honesty processes are often fragmented and span across various user interfaces. This can lead to repetitive manual works for Processes are also set up in a rather static way, which makes it very hard to adjust them and master upcoming changes. Ultimately, today's processes can therefore result in lower customer supplier and employee satisfaction. As a consequence, companies do see the need to compensate these effects with increasing costs.
And this is exactly where Business Process Intelligence comes into play. As Christian already briefly pointed out in his keynote, We are very excited to announce today our plans to acquire Signavio. Signavio is a leader in the Business Process Transformation segment. They are bringing a thorough understanding of the potential that lies within transforming business processes on all levels within a company. And very clearly, Signavio is no stranger to SAP.
We have previously successfully partnered up with them Help our joint customers such as PricewaterhouseCoopers and Zalando transform their businesses successfully. From process mining and data analysis all the way to modeling, execution and benchmarking of improved processes, Their portfolio complements the current SAP BPI portfolio. Underpinned by our own expertise as well as external know how, We can now offer a unique set of holistic end to end process transformation capabilities. So no matter where you currently are, Our business transformation suite will allow you to assess which changes drive the greatest value for your business, your customers And your financials. BPI will help you identify process gaps and bottlenecks based on real time insights Such as process KPIs.
The analysis also relies on process and user behavior mining And helps you understand improvement opportunities. BTI then will allow you to design and compare your current process with the planned future state. This will enable you to simulate the benefits. Next, you will be able to receive recommendations For tangible improvements and act accordingly. For example, you can seamlessly close the loop Using intelligent robotic process automation or in short IRPA as well as workflows and other services of SAP's business technology Finally, BPI will enable you to roll out the changes.
It helps you educate your employees on the changes and embed them in your business. You can monitor the generated business value and explore further improvement potential. And last but not least, as this is a continuous cycle, you will be able to model your process landscape and benchmark it against industry standards On a regular recurring basis, Ruben Murato, our General Manager of BPI will provide more in-depth insights Into how BPI helps you navigate your digital transformation. He will also outline the new capabilities That we are already delivering with the offering that is launched today as well as its future potential. One of the most strategic processes for us is the order to invoice process.
We wanted to streamline and automate this process As much as possible, the plan was for customers to enjoy a smooth experience from purchasing all the way to payment. In order to achieve that, we analyze the process with user behavior mining to understand how The users are actually working with the system. And then we benchmarked our analysis to industry standard KPIs. In doing so, we found that inconsistencies in the systems resulted from unnecessary input fields and repetitive manual work. Specifically, the mapping of the sales order to the customer's purchase order in our CRM system And then reflecting this in the invoice generated in our ERP system requires significant manual effort.
With this finding, we were then able to automate these steps using IRPA. This significantly improved the experience for users and customers And ultimately accelerated our cash collection time. In closing, today we are very excited to extend this experience to you, our customers. We take on our responsibility to unlock your transformation potential By optimizing, automating and continuously improving your business processes. No matter where you are on your journey, BTI
Thanks, Luca, for sharing your strategic perspective on BPI. And obviously, it's great to see that we are leveraging BPI for our internal transformation. As you heard from Luca, we as SAP really feel responsible to help you drive your transformation holistically. In order to provide you The support you need to really succeed with your transformation journey, we want to be your trusted partner of choice in the Business Process Intelligence space. My name is Ruben Murato, And I'm the General Manager for the strategic topic of Business Process Intelligence.
In short, BPI. And you know that we love acronyms at SAP. Now let me add a bit more color to our BPI portfolio to show you how it helps transforming your processes. Because at the end of the day, Business processes are the lifeblood of every company and what a business transformation is all about, right? Making your processes more efficient, automated And intelligent.
Let me start with illustrating the overall vision that we have with BPI and how it will how you will benefit with regards to your process translation. And I will then explain where we stand today on this road and how we plan to accomplish the full vision. So when it comes to your process transformation, we clearly want to help you end to end. And that means it is not enough to just help you analyze your processes and generate insights into what is going wrong. We also need to help you to design and simulate the to be state of your processes to give you a sense of how things should look like.
But it's not enough to just leave you with the ability to imagine the future. We need to help you to translate the future into actions And what it means to actually execute the improvement of the process. But also here, it doesn't end with just introducing a better process. It also needs to reach the people operationally executing it, so the ones carrying out the process steps. So beyond improving the process, we need to help you make sure The improvement gets rolled out and governed into the operational usage.
And last but not least, it is critical to ensure we help you to monitor Whether the improvement actually resulted in the impact that you were targeting at, only then it's a real end to end process. However, one important element for real process transformation is still missing because we have to ensure that this is not happening As just a one off project, we need to continuously iterate it and that requires what we would call the home base, Which is the place that you always come back to where the knowledge of process management is modeled and managed in your company, Your process repository. To round up our end to end offering, we leverage SAP's unique data assets to provide relevant benchmarking across the full end to end process, Always checking the different steps against our huge benchmarking insights. Let's now dive deeper into these parts.
And let me start with
the last one I just talked about that is spending across all of them, the home base. With the acquisition of Signavio that we announced today, we now have a market leading business process transformation suite that enables you to model, design and manage your processes end to end. It gives you a strong process repository, your single source of truth for all operations of an organization. The Homebase allows you, your process community, but also everybody else in your organization to come back and continuously manage your processes. This makes it a continuous journey as opposed to one off optimization projects.
The home base is also the place for collaboration on processes, be it during the design phase, when you change your processes Or when you define the implementation of business process with your IT department. This collaboration on processes is absolutely crucial Because at the end of the day, transformation is about change and change is a team sport. Hence, the need Of collaboration across different functions is absolutely key and makes things work. In the end to end process transformation, the first step Into transforming your processes is to analyze and discover them. And who would be better positioned to analyze, understand your business processes Then the software provider with the broadest business application portfolio in the market running the business processes of the world, SAP.
Leveraging this unique know how on how your processes run-in our applications, BPI Offers analysis with predefined process KPIs and process flows. Based on your own data, you can then identify process areas That need your attention when moving into your transformation. Our broad customer base allows us to provide unique benchmarking insights to help you understand Where you are compared to your peers. And out of that, we derive tailored recommendations for your way forward. Next to the quick time to value analysis, with Signavio, we also bring leading and state of the art process mining capabilities That allow us to really dig deep into a process.
This will become an integral part of our overall integrated process analysis portfolio. Understanding process flows, different variants and slicing and dicing the way your process is run will be easy to do with the Signavio Mining capabilities. And because Ignacio is also the leader in business process modeling, we can even relate and blend the process mining flows with the model flows, A really strong value proposition. Another component in this portfolio will be our user behavior mining that some of you may already know as Spotlight by SAP. With that, we can combine the back end process mining insights with the front end user behavior.
So we see what is happening in the system And we see what the users are doing within the process. The combination of both is extremely powerful since not everything that slows down the process can be seen in the system data. The analysis piece becomes very much complete and compelling with Signavio also adding the capability of a 3 60 degree view to the process By bringing the experience data of Qualtrics into the equation. Sometimes process problems can be identified best By understanding customer satisfaction or also by asking end users of a process of their experience, having all that together, Standardized out of the box data, back end mining, user behavior and the process experience data that gives us the real 360 degree view On a process and enables you to truly understand the business processes and their shortcoming. Analyzing and understanding business processes Is the basis for designing and simulating the future.
And here comes the home base again. With the mine data, You can compare the current process reality with the planned future state. And let me give you an example. You are a customer that wants to migrate to S4 and wants to find out where you can get business value from. With the mined data, you could blend it with the processes in your home base.
And then you can see, for example, that the credit management and functionality in S4 It's way more capable and richer compared to how you currently do it. This change would lead to massive improvements when moving to S4. So based on your data, we would identify potential improvement areas for you, such as those in S4, Where the respective manual sets are already highly automated in an intelligent way. In addition, we then enable you to simulate the new process And see how automation contributes to your process performance. For example, to reduce cycle times like in the credit management example, Which is a real business benefit in monetary terms.
This is actually a pretty cool step as it brings the repository of process models to life With real data. So as you can see, this is clearly not just a pure reduction of total cost of ownership on a technical level. By using process insights, you are able to analyze and transform your whole business and the business processes within that to deliver true business value. Of course, it's very important for us to not leave you alone with the findings of process problems. We want to help you to jointly realize the improvement right away.
The recommendation for that can be manifold. For example, instead of an improvement already existing in S-four like in the credit management example before, We can identify issues that would be solved by automating certain steps with RPA or other automations like low code, no code. We are working on integrating these automation services running on our business technology platform with our BPI offering To help your business user easily trigger and execute the improvement immediately. Coming back to our home base, We will then use Signavio to document the changes that happened via the improvement in the process. Out of our own internal experience, it is absolutely crucial for the transformational success to ensure that the change in the process are being rolled out to all end users.
If you don't focus on this aspect, your corporate people believe the problem is fixed, But the ones on the ground do not benefit from the improvement. The home base is your place where you then document your changes and improvements And that you use to collaborate with the end users to make sure the changes hit the ground, absolutely crucial. And let me take your imagination one step further here. In combining the Signavio model process world with our core applications, We as SAP will be able to closely tie the process together with the application. Imagine an end user working through his business process using S4.
Imagine, we could notify the end user whenever he deviates from the ideal process As defined in the models in Signavio or the system could identify that the end user is running into bottlenecks And even predict these bottlenecks for the end user based on the modeled processes and the MIND data and by that Help him to make his work much more efficient. This is what we call the intelligent enterprise on a process level. Last but certainly not least, we offer monitoring capabilities right on top of your systems with predefined KPIs And process flow and the ability again to blend the life system process data with the models and see deviation. This allows us to turn one off process improvement projects into continued process excellence journeys and gives your process community The perfect toolset to holistically manage their processes. As you've just seen, we are really going big on helping you transforming your process landscapes.
And Signavio is perfectly complementing our portfolio. Of course, with the acquisition announced today, Not everything will be readily available in the Aspire integrated manner with immediate effect. So let me share with you high level what you can expect now And how the availability will evolve over time. First of all, it is important to understand that for the time being, we have 3 product lines within our BPI portfolio, BPI Insight, BPI Improvement and BPI Signavio. BPI Insight part is addressing This will allow you to get first insights based on your system data on which areas to focus on in your transformation.
Based on predefined KPIs and process flows, we offer unique benchmarking capabilities that will allow you to compare your business to your industry peers. And we already have more than 3,000 benchmarking data sets from customers of all key industries, sizes and geographies. So based on your own data And the benchmarks, you will then receive tailored recommendations on how Sfour and other applications can help you improve your process outcomes. Great insights with quick time to value. This is the perfect start for your RISE with SAP journey.
Mid-twenty 21, we will then expand the process discovery and launch the full BPI Insight product. This will then include user behavior mining, Many, many more process KPIs and process flows and analytics capabilities with a quick time to value for your transformation. As part of the RISE with SAP offering, we will provide you with a starter kit to the full BPI Insights product once it is launched. This will allow you to use key features for a limited time to get going with your transformation. Our second offering BPI Improvement is powered By the SAP Business Technology Platform and covers the Process Improvement action part.
We are working on integrating BPI Improvement tightly Into our Process Transformation Suite and will enable you to immediately execute on the identified issues with services such as workflows, Integration services, low code, low code application extensions and robotic process automation in a seamless way. RISE with SAP will grant you credits For using the business technology platform and you can then use these kind of credits for implementing BPI Improvement Technologies. For example, you could identify via the user behavior mining that your employees are carrying out plenty of manual steps in their business process. And via the tight integration, you can leverage the data out of that to immediately build a RPA bot to automate the process. Besides BPI Insight and BPI Improvement, the 3rd BPI product line is BPI Signavio, a very well established process management and intelligence suite.
I mentioned some elements during the vision part already, but why don't we have the CEO of Signavio join us and briefly let him share the Signavio world within SAP. Welcome on stage, Garo Decker. Hey, Garo. How is it going?
Hey, Rouss.
Yes, great to be here. This is exciting news indeed. SAP is establishing itself as a true process champion. At Signavio, we've always been passionate about helping customers And improve and transform all of their business processes. More than 2,000,000 processes in almost 2,000 organizations have already been optimized Or reinvented through Signavio, in many cases supporting large scale S4HANA transformations.
More than 1,000,000 users are already using Signavio today, Making it one of the largest process excellence communities on the planet. Now, I'm excited that we're joining the SAP family. Together, we will have the strongest process management and intelligence offering on the market. We will be able to help you manage SAP And non SAP processes like never before, SAP is a fantastic platform to bring operational and customer excellence to life. In many cases, we're already jointly helping customers transforming through Ithfour, like at PwC and at Zalando.
And now, I can't wait to see our joint offering used by all of you. And I'm looking forward to working with you
Great. Thanks, Gero. I'm really looking forward to drive BPI together with you. Likewise. Thank you.
Of course, down the road, the 3 product lines will merge into 1 process transformation suite, But of course with the seamless transition of your then existing contracts. We will share more details with you soon on that. With this portfolio, We will cover your end to end process transformation journey. Additionally, BPI will be complemented with the offerings Of both the business transformation services from SAP and our partners and ecosystem in order to get the best out of RISE with SAP and the Intelligence Suite. Well, to sum it all up for you, with SAP's BPI portfolio, we will help you transform your business processes holistically.
Our Process Transformation Suite will enable you to analyze, simulate and see how the recommended improvement Contribute to your process performance. You will be enabled to execute certain improvement actions, ensure the changes hit the ground via structured rollout and Monitor all of that for a continuous process excellent approach, all supported by the home base. The 3 components of the BPI family are BPI Insight, BPI Improvement and BPI Signavio, which will merge over time into one holistic process transformation suite. In the context of RISE with SAP, you will get certain elements like the process discovery And the Business Technology Platform credits for kick starting your process transformation journey. SAP Services And our vibrant ecosystem will round up the offering to help you entering your process transformation journey in the context of RISE with SAP Towards the intelligent enterprise.
BPI overall will ensure that new transformation is a true business transformation with clear ROI Instead of a TCO driven system transformation. Let me close in sharing some information on how you can start your transformation journey now. Request your free of charge process discovery report. Make best use of your credits for the Business Technology Platform And work with your sales representatives on getting going on these topics. You can also visit our website for further information on BPI.
I know you are as excited as I am about Business Process Intelligence. I very much look forward on working with you on that.
These are exciting times for SAP and for our customers, Particularly in light of the unprecedented business environment we face, we're especially eager to help each and every one of our customers become an intelligent enterprise. And we invite you to do so by leveraging our holistic business transformation as a service offering. RISE with SAP is your concierge service to the intelligent enterprise. With it, SAP offers our customers all the tools that you need to embark on your journey to the intelligent enterprise. You're likely asking yourself, What next?
How do I bring RISE to SAP to life in my organization, not conceptually, but practically? Hi, my name is Robin Manhurst. And as Chief Performance Officer at SAP, I'm responsible for ensuring The SAP delivers practical business outcomes to our internal customers, our external customers, our partners and our shareholders. And business outcomes are precisely what we had in mind when we designed RISE with SAP. And we designed RISE with SAP For our customers with our customers.
To be clear, RISE with SAP is a vision for our customers, But it's also an explicit commercial offer. When you buy RISE with SAP, you receive a comprehensive set of services From across SAP's solution portfolio and they're all bundled together to provide you with the tools you need to embark on your journey to the intelligent enterprise, all according to your business requirements and your business timeline. So let's take a look at what's included in RISE with SAP. First, we include discovery reports From our business process intelligence solution capability. With these reports, you can assess your current business processes And identify potential areas for business process improvement.
We also include a set of automated tools Where you can analyze your custom code and assess your migration readiness throughout your transformation journey. RISE with SAP also offers cloud infrastructure as a service. We deliver this infrastructure according to your business requirements, Whether they're related to performance, data residency or location or otherwise. To be clear, Cloud infrastructure is provided by all hyperscalers and in SAP data centers. The choice is yours.
We also include consumption credits for SAP's business technology platform. The number of consumption credits that you receive will vary According to the number of users that you have rising with SAP, you can use these consumption credits to purchase any service that's is governed by our platform enterprise agreement. And right away, you can use these tools to begin building custom integrations and cloud extensions. Furthermore, RISE with SAP includes an SAP Business Network Starter Pack. This allows you to start digitally collaborating with your trading partners worldwide.
The Business Network Starter Pack includes functionality for the SAP Digital Supply Network, known as the Ariba Network, And also SAP's Asset Intelligence Network and our Logistics Business Network. And at the nucleus of it all is SAP S4HANA Cloud. And with RISE with SAP, You can choose to deploy it however you wish, in a public cloud or in a private cloud. And all of this is delivered as one offer with one contract at an aggressive and competitive price point. Furthermore, SAP holds singular accountability for SLAs, operations and issue handling.
This is RISE with SAP. It's a first of its kind cloud subscription commercial offer For holistic business transformation as a service. A key tenet of RISE with SAP Is that our customers can choose to move their ERP to the cloud in a deployment model of their choice, public or private. The public cloud has been our North Star architecture. And now SAP S4HANA Cloud Is included in RISE with the other RISE entitlements that I mentioned before.
You can also purchase SAP S4HANA Cloud with S4 deployed on the private cloud is a new offer in RISE. We piloted it in over 100 successful business transformations In 7 geographies in 2020, the Private Cloud Edition is a simple subscription offer. It allows you to have an on premise commercial experience in the cloud. Your subscription includes software and support, Migration services and infrastructure as well as all of the other RISE entitlements. It truly is a tremendous offer for SAP's customers.
And in all cases, RISE with SAP Personal business transformation journey. Managed services in RISE are provided by SAP. Advisory and implementation services are provided by our partners. Of course, you can always choose the service partner That best fits your organization's needs. To conclude, RISE with SAP Together with our ecosystem of partners and customers, we are delivering a cost savings, speed enabling, Business transformation achieving solution for you.
And together, you can join the rest of SAP's customers As we lead the next era of innovation and growth worldwide. So let's get you started on your concierge service to the intelligent enterprise
At SAP, we have been helping customers run their businesses efficiently and adapt to the changing market conditions For over 50 years. And after a year like 2020, the stakes have never been higher and the urgency to shift to the cloud has never been more immediate. And at SAP, we are rising to that challenge with an offering that allows every single one of our ERP customers, if you are on ECC Aurora Huron S4 to move to the cloud and to experience ERP in the cloud. With this solution, we are bringing together the strength of SAP And the entire ecosystem as well. And I'm thrilled that today we have joining us both a customer and a partner, Alain Girard, the CEO of ATOS.
Alain, great to have you with us.
Thank you, Brian. Thank you for inviting me. Thank you To Christian as well, thank you, the entire SAP team. Very happy to be here with you as a very long standing partner, 35 years of Partnership. So thank you for the opportunity to share this conversation with you.
Let me get started by asking you, Atos is going through a business and technology transformation currently. So maybe you could share with everybody Where our assets currently is in terms of that transformation?
We have been experiencing over the last 12 to 18 months with quite recent Very powerful, what we call, digital breakthrough. Maybe for longer for some of them, but They have been accelerating. And here I'm talking for others. I'm talking for our entire vast customer base. And we see 7 of them.
First of all, through StackCloud. We're going to come back to this and this is the topic of the day. But obviously, there is a massive migration to the cloud, which is happening as we speak, which has been accelerating incredibly in COVID times where we are still now. Business critical applications, we'll talk about as well. SAP is the big business critical application landscape.
This is also undergoing at the moment in full acceleration. Digital platforms is also very strong trend. Then you have customer experience, employee experience, especially with the COVID, which is more now The new name for the digital workplace, employee experience. And then you've got 2 other digital breakthrough we're all going through,
which
are the cybersecurity Exploding, as we all know. And last one, but last but not least, decarbonization. So we've got those 7 digital breakthrough we're All experiencing, Atos, yourself, I'm sure at SAP and all our customers. So at Atos, what we've been doing as a transformation, A year ago, we decided to verticalize the company, meaning to build, to reorganize both our portfolio of offerings, Our market and our organization itself into industries, 6 industries to better serve our customers. I think that in those times and to address properly those digital breakthrough, we need to be industry relevant.
We need to build offerings, Which are answering the business needs of our customers, not just the technical or even digital, but the business needs of our customers. And that's why We went vertical, went industrialized. So that is really the transformation we have undergone in the last year.
Obviously, you're going through a lot like lots of our customers are currently. But what excites you most about the opportunity that cloud actually represents
Well, I think the motivation to accelerating the move to the cloud For our thoughts, it's the same as for any of our customers or yourself. We want more flexibility. We want more modularity. We want more scale. And we want to be able to innovate once And to expand the innovations extremely quickly in terms of time to market.
So this is what the cloud has been allowing us. Cloud is not new. Cloud is existing for what 15 years now. But cloud now is not Just a nice to have. It has become a must have.
You cannot talk about any digital transformation even more About any business transformation for a large company, that's moving to the gas. So it is a must I talked about flexibility because it's very important when you move to the cloud and especially when it comes to Business critical applications not to worry about in on which architecture you're moving to. And with RISE with SAP, we are able to move to any type of architecture, Still parts on premise, private, public, we can move on any type of architecture. I talked about modularity, Because it's also important when you move to the cloud to be able to move progressively your applications and decide to add some add ons, Some additional applications as we did at Atos, for example, with Ariba and SuccessFactors, where it went very seamlessly, Thanks to this. So you need also this modularity.
The projections that we see is that at the moment, If you look worldwide into the cloud, you've got 10% of the applications currently into the cloud are business critical applications. That will be close to 30% of the total applications in the cloud being business critical applications in 2024. So this is moving super fast. As you said, obviously,
there are nice to have applications to move to the cloud and now there are the business critical So your SAP instances that are going to be moving to the crowd. And I know that Atos is live on S4, which is great. And earlier in 2020, we started working together for you to embark on a journey with RISE by SAP to allow you to move all of those ERP applications to the cloud. And this gives us the ability to work with you and help you orchestrate that move. But at the same time, I think it's important to stress to our customers, you are in a sport so you can make that move, but also for other customers And who are running on ECC, the move to the cloud is still possible.
So can you explain to me what you see as the benefits That SAP brings to the table with RISE by SAP for us specifically.
Well, I think that RISE with SAP is a fantastic offer and a fantastic announcement today because it's a really Holistic approach. The other aspect, which I think is just a must have as well, is that RISE with SAP allows, a migration onto any type of infrastructure. What's very important to understand for The cloud migration is that, it's not just a technical migration. Yes, there is a technical migration, that's for sure. It's also a business transformation.
We talked about it. But it's also a real culture change. So it's very important to all customers who are listening to clearly have in mind that a Cloud migration project has to embed and embrace a very strong culture change management And this is what we're doing at Atos, making sure that all users internally can get the best of the cloud. Because if you move to the cloud and you don't have your people familiar with it and really leveraging on it, capitalizing on it and really get The maximum benefit out of the cloud in terms of speed, in terms of scalability, in terms of innovation, You're missing something. So this culture change that you need to work on, in fact, not half of it in parallel Of your technical migration for me is the key success factor that we're working very hard on at Atos and at our customers.
And I think building on that, Ali, I think what's our opportunity here at SAP is obviously like I said at the outset, we've been supporting customers for 50 years and now the opportunity we have is to actually embark with them on a new journey and to help them either Move to S4 potentially or help them move their ECC at state so that they can become S4 ready in the future. And let's face it, we at SAP, we own that ERP space, as you know, and we are extremely strong at it. And really and truly what we're doing here It's actually pulling together the best of the ecosystem from SAP, from the hyperscalers and from our partners as well Like Atos and other partners, so maybe if we like switch gears a little, move from the customer side to the partner side. Obviously, you support A lot of customers and SAP customers in the market and the great thing I believe was rise by SAP is that we're orchestrating For our customers, it moves to the cloud. So rather than me sharing with everybody what I'm hearing from customers, maybe you could share what you're hearing from SAP customers in the market.
Well, this is the central question, obviously. I think what I'm going to tell you is exactly what you see With your customer and we have in common many of them by the way. So we're seeing the same thing. I think as we said earlier, We are in the time of the migration of the business critical applications. That's 1.
And again, the SAP landscape is very much a business critical Application landscape. So companies now want to move SAP into the cloud because they have understood And again, especially that has been accelerated during the COVID period. It is true. And that has been accelerated. They have understood The criticality of doing this for their own business transformation.
The first applications moved to the cloud Did not allow a full business transformation. You have to move the business quickly. The second element is what I would call the large instances. Moving large instances of applications was requiring so far A lot of processing power and memory in the cloud, whatever the type of cloud, by the way, To be able to have very low latency, a great efficiency and a customer spend a user experience in the end, Which would be at the top. And now we have built together, by the way, their metal solutions that really allow To be to have the best of both worlds, to be in the cloud with SAP, with RISE with SAP and to have The best latency, the best SLAs because we have a real, what we call, bare metal solution.
So we get that way the best of both worlds. And that's exactly what the customers are asking.
And I think what you bring up there is that what cloud allows and what RISE by SAP allows is for us to work with our customers wherever they are. So firstly, if they are an ECC And they want to move to the cloud, we can work with you and we can get you S4 ready in terms of your moves to become an intelligent enterprise. And as you also bring up, if there are customers Who have very large applications, for example, and instances and they need to look at bare metal, there is an option for us to look at that with Atos as they move towards the cloud And then maybe if we build a little bit in terms of you as a partner, How are you seeing things evolve now as we move from 2020 into 2021 and hopefully to brighter days With COVID hopefully going to be behind us soon, how are you seeing the market evolve and change here?
Well, I think What you're announcing today, just like our AtlasOne cloud offering, we announced in November together with our Among which, of course, yourself, SAP, I think these are the ingredients For the rebound that we are all expecting for 2021. Companies will rebound in a different Way in a different normality as we've been hearing a lot in those months than before. And this new normality Will happen only further to a very strong and deep business transformation. And this business transformation in turn We'll be able only with a strong
cloud migration. When I say
a strong cloud migration, again, I mean The cloud migration of business critical applications. So that's why I think with RISE with SAP on your side, very holistic Offering on our side, the Atos 1 cloud offering that we announced back in November, we have 2 Very holistic offering, which are echoing each other and which are gathering everything our customers' needs, whatever the architecture, Jacqui, as you said earlier, whatever their needs, whatever their needs linked to their own business, to their own industry.
Well, Ellie, I wanted to firstly thank you as a partner for helping us launch RISE by SAP. You played A pivotal role earlier in 2020. I wanted to also thank you for the journey that you and everybody at Atlas is on with SAP in terms of Moving out to the crowd with us. And at the same time, I wanted to thank all of our customers for joining us as well. And we really look forward to building a lot of momentum in the market, both with our customers and with our partners as well.
So, Elie, thank you very much.
Good luck with the rise with SAP. We'll be there and remain a very strong and happy partner of SAP. You can count on us.
Welcome to this very special RISE with SAP session for partners. I'm Diane Pereira, and I'll be your host. Today, we're going to look at what RISE with SAP means for you, the opportunity, the engagement strategy and the elements needed to simplify that transformation journey that CEO, Christian Klein talked about in today's announcement. Now keep in mind, today's session is just an introduction. But at the end of the session, you'll have a good baseline understanding of the opportunity for partners and how we'll go to market together with this package.
So to get started, let's first recap the offering from the customer perspective. In a nutshell, RISE with SAP is Business Transformation as a Service. It's a complete package that helps customers make Intelligent Enterprise a reality. Now as Christian said, RISE with SAP is the concierge to the Intelligent Enterprise. It's a bundle that includes free business process intelligence, cloud infrastructure choice, SAP Business Technology Platform, free access to our business network and of course, our market leading ERP solution SAP S4HANA Cloud.
I had the chance to sit down with SAP Chief Partner Officer, Karl Fahrbach, to get his reaction to rise with SAP And how it fits into our plans for the partner business. Carl, welcome. Happy New Year. I hope 2021 is treating you well so far.
Thank you.
What are
your initial reactions to RISE with SAP? And what are you most excited about?
So today is a very big day for our customers. RISE with SAP brings everything customer needs to transform the business and to build the intelligent enterprise at the pace that work best for the customers. Once the customer has gone through the transition to SAP S4HANA, there will be great opportunities also for partners to continue driving business transformation For our joint customers. So we expect partners to help continue that conversation.
So they really have an elevated role in all of this. Is that right?
Absolutely. We will lead always with the partner service. So that means that we will position the services of the partners upfront. This is why we need to work very closely together, SAP sales and the partners to ensure that we can position the services of the partners properly so that we'll open a big opportunity for the partners to sell more services.
In other words, we're really pivoting our strategy in terms of SAP Services. We're in a position now where we're no longer competing with the partner,
Right. So I have to say that it has never been a better time to be part of our ecosystem. Number 1, The partner strategy has become a key pillar of our overall SAP strategy. Partners are at the very center. Number 2, partners play a key role in the entire customer lifecycle.
Customer success cannot happen without partner success. And number 3, Partner innovation is a key part of the product strategy and roadmap, and it is essential to deliver the intelligent enterprise. With the acceleration to the cloud as a new strategic direction, our new and strong ecosystem mindset, everything falls into place along now with this super exciting ride with SAP offer.
Clearly, this is a great opportunity for SAP Services partners and for value added resellers. But this is also an opportunity even for solution partners, isn't that right, since innovation and business technology platform are really at the core of RISE?
The services partners, it's a big opportunity. We are really expanding the role of them, and we're going to go always partner centric with the partner services upfront for our value added resellers. We're going to Go to market with them as well. So it's going to be a partner centric go to market when we go to segments like, for example, the mid market. And then if you look at the innovation partners, those solution partners A built IP, it's going to be as well a big opportunity for them because the IP that they will be building will complement the intelligent enterprise and will make sure that we Deliver intelligent enterprise to our joint customers.
And this technology platform is really sort of that unified platform where we keep the core ERP clean and there's no modification.
And for the customers, it's going to be easier to move to the cloud If we keep that core clean and we build on the business technology platform as the nexus of all the integrations. And one of the key components to make it easier for them is to really Get rid of touching the core. We need to keep the core clean. So we need to avoid as many customizations as we were doing in the past. And for that, the answer and the solution is the business technology If you look at, I mean, the industry, if you look at the world and the speed of innovation, we believe that moving into the cloud is not enough.
We need to continue that journey, that's what the race with SAP allows the customers and the partners to do.
So RISE is really one complete package that combines the software and the services. So how is that different than it was in the past, say, with on premise?
The key premise of RISE with SAP It's number 1, to simplify the move to the customer to the cloud. But number 2 as well is to deliver continuous innovation throughout the transformation journey of the customer. It's actually a journey, and this is what lies with SAPs. We really will deliver continuous innovation to the customer to make sure that when the customer goes through the transformation, we are there for them.
So no more selling software today implementing later essentially. It's the partners with us from the get go.
Correct.
Let's talk about the kind of customers that really can take advantage of this. This is for large customers, but also for the mid market, the midsize as well, right?
The RISE with SAP offering has a strong value proposition for customers of all sizes and types. And very important, if you look at this offer, It is equally attractive for existing ERP customers as it is for net new customers.
And it's worth mentioning too, most of SAP's customers are midsized customers. And most of those customers or a large majority of them are serviced by partners.
If you think the mid market as we go to market today, it's partner led. We go with the partners not only from a services perspective but as well from a go to market perspective. And I think that's the biggest opportunity for them.
So Carl, looking ahead, When you think of RISE with SAP, our acceleration to the cloud that was announced last fall and the SAP partner strategy, How do those three things interlock?
You look at the roles of the partners and the role of the partner as well as evolved and really covers now the entire customer lifecycle. And then if you take the innovation piece as well, we see as well the partners as a key component to help us augment our portfolio and improve as well the quality of our portfolio and our products.
Carl, as we come to a close here, what's your key takeaway for the partners today?
My key takeaway is it has been a big day for our customers, For our partners and for SAP, as we take this new offering right with SAP to the market, what I'm super proud and very happy about I'm very excited just to see that the partners are at the very front and center of the SAP strategy. We lead with partners. We are going to be partner centric when we take this Offering to the market, but as always, big opportunities come as well with responsibility. And the responsibility is what I mentioned before. We need to make sure that we keep the core of the customer Clean to make sure that the customers have a smooth transition to the cloud.
Thank you so much for your time. I really appreciate it.
Thank you very much.
As we heard from Carl, the partner system is really important to the success of RISE with SAP. The software represents a big opportunity for partners. So here to talk about it is Mark Rolfe, who leads Strategic Partner Business Development at SAP, played a key role in developing this offer. When you spoke to the partners that you pre briefed, what sort of a reaction did you get?
I think the partners overall have been pretty excited. I think they're Excited mostly with this solution and our company overall. This is a different engagement model. Typically, we haven't engaged them end to And in the customer lifecycle, but with this solution, we're able to work with them early in the sales cycle all the way through delivery. It's really about partnership and driving real value around the intelligent enterprise.
Did partners ask for some sort of a package like this?
A lot of
the partners in the past have really launched cloud practices, digital practices and really what they've been waiting for from SAP is to be able to meet where they are in the market. So we're playing a little bit of catch up with them and they're ahead. And that brings a lot of knowledge as well as understanding of the market We'll be able to leverage. RISE with SAP Business Transformation as a Service is not complete without our ecosystem. There's a lot of value that they bring to the table that really aligns to what our package offering brings And really provides the utmost value to our customers.
Could you provide a little more detail in terms of how it's Going to be different than the kinds of solutions that we've offered in the past.
As SAP moves to the cloud, we're evolving our strategy around the intelligent Enterprise. And with RISE with SAP, this is really looking at a business transformation as a service offering This is not just a migration to the cloud. This is not just infrastructure as a service or software as a service. This is really about a holistic solution that provides the beginning of the journey to the intelligent enterprise and allows a customer to evolve towards that, innovate towards at that with our ecosystem and with SAP as their partner.
A lot of customers have given us every indication that they want to use hyper scalars as a key piece of their infrastructure. So does our strategy support that direction?
Part of the bundle that we're offering today with RISE with SAP includes the infrastructure from the hyperscalers. Combining that with the relationships that our large services partners already have with Hyperscalers, they understand how to work with them. They understand how to leverage their infrastructure and they understand how to leverage SAP's capabilities together. This will make us even stronger. The ecosystem is an integral part of the Business Transformation as a Service opportunity with RISE, And it packages all the different components from software to infrastructure to services that really allow this to be a powerful solution in the market.
Mark, you've said, when we've been discussing RISE with SAP that we have this package that we call RISE with SAP, But we don't have RISE with SAP for XYZ Industry. So it sounds like that's pretty important.
What we're bringing is a transformative solution for our customers. And that's not just about a commercial model. That's not just about a bundle of capabilities that enable that. It also depends on industry knowledge and differentiation They can transform the customer's business processes by industry, working with our partners and specifically our global strategic partners Around their key knowledge, differentiators and know how in the industry realm brings that into the solution and allows us to effectively Create even more differentiation for a combined solution between our services partners, our infrastructure providers and SAP.
All right. So lots more to come on the industry front.
Absolutely. It will be a key differentiator for us in the market.
With RISE with SAP, how does the way that we engage with our customers change?
We really are starting a different type of engagement with our customers and our ecosystem. It starts with presales. It starts with a common message. We don't want to walk in one day and give one message and our partners walk in the next day and give a different message about how to move to the cloud. We need to have a consolidated and concise message together and that's the first part.
That hasn't been done in the past. A lot of times it's more Sequential, where we sell our software, they sell their services afterwards. We need to be working together upfront with that single message to the customer so we don't Confusion. That kind of collaboration will last throughout the customer lifecycle as we deploy solutions and then as we innovate and continue to evolve the solutions for our customers
What do you see as the main go to market activities that partners need to be thinking about when it comes to RISE with SAP?
I think there's a huge opportunity to really engage early in sales cycles to start to position what the value could be, what the journey will be Long term for this endeavor to get to the intelligent enterprise, implementing this package and this offering for customers and innovating all the way through the entire Lifecycle, it's a consistent engagement not only with our ecosystem but with our customers to make sure that we are driving the value as markets continue to move.
Ed, how important is it for partners to take a leadership role in terms of how we're working with customers with RISE with SAP?
I think it's really about how we work together to make sure that we provide that leadership to our customers with a consistent Again, in the past, a lot of the conversation has been in silos. We may have helped them position their services. They may have helped us position our software, but with RISE with SAP, this is about a single opportunity to come together With a common message and an end to end solution that will help them realize their goal and start them on their journey to the intelligent enterprise.
Mark, thank you. This was really terrific. Thank you for walking us through it. We appreciate your time.
Thank you very much. Appreciate it.
Let's turn our taking attention now to solutions developed on the Business Technology Platform, unified platform that's central to the rise with SAP offering. Business Technology Platform is where innovation happens. It's what makes it easy to complement, extend and integrate with any other solution, whether it's SAP, partner or third party. My next conversation is with the Chief Technology Officer for the Global Partner Organization, Jagdish Sahasrabudahy. Jagdish, welcome.
Thanks, Diane. Happy to be here.
Let's get right into it. How does RISE with SAP fit into the big picture innovation story at SAP?
It all starts with customer success,
right?
In such an environment. And our partners fully understand this. RISE with SAP is all about is to help customers Innovation. RISE will actually change the way SAP and partners will jointly innovate for customer success.
Keyword there, change. What kind of change are we going to see in terms of the way that partners and SAP deliver all this innovation?
First of all, SAP has delivered extensions brings in the second change in how you innovate. What you do is you say, oh, customers need some maybe some screen tweaking, Maybe some fields need to be added to the database. Maybe SAP is not doing pricing logic correctly, and so And then finally, you can bring all this together using integration because end of the day, an agile, intelligent business process is really what makes an integrated enterprise.
What about the business technology platform because we haven't spoken about that, but that's key to all of this, right?
Right, Diane. So all the innovation we spoke about needs to be done on the basis of a unified technology platform. And that's really what The options that partners can use to help customers bridge those gaps between what SAP solution is offering and what the customer's business requirements are. Then following on to that, we have the business technology platform integration suite keeping all the different silos together In an end to end business process, there's also business technology platform data and intelligent technologies. There's a lot Of innovation that can be driven with data orchestration, data domains, data models and then really bringing it all together to have analytics on top of it.
So if you really look at the different innovations that we spoke about, the platform is where partners can bring all those innovations to the customer's business process?
What's the impact for partners with Business Technology Platform as it applies to RISE with SAP.
So that's a great question because at the heart of it is really what how do partners innovate and how do partners leverage this opportunity, right? The first thing we spoke about was can actually help customers periodically implement this new functionality that SAP is releasing to customers. So instead of modifying the systems, they can actually make revenue by implementation of these new innovative features. The second aspect is the extensions themselves, partners use Business Technology Platform to implement these extensions. These extensions could be implemented as a one time kind of services, And take the business process and develop many more solutions for the customers.
And then finally, integration, so partners can be there with the customer, Keeping it all together.
All right. So that leads me to my next question, which is, does RISE help services partners become solution partners with SAP.
What we see in our discussions with partners in the market, Diane, is that, the lines between Services partners, solution partners, these are really blurry. Services partners implement these custom Extensions at customers, right, 1 by 1. They could do it as a one time custom job, but what happens is they start seeing a pattern. What the services partner can do in this case is take the same thing that they've been doing with these multiple customers and really bring that all together as a packaged IP solution. And as soon as they do that, they kind of become a solution partner because now they have a packet solution Which fits not just that one customer's requirement, but a broader industry requirement.
And that gives them the opportunity To then sell that to many more customers, it starts with services and perhaps gradually that becomes a solution. We recently had a solid partnership that we signed as an endorsed partnership with a company called TeamViewer. Let's say the utilities industry, there are assets that are much more remotely located. What TeamViewer does is performs remote asset management. They take that and hook it back into the SAP solution business.
So, we're going to continue to see
the
What's the one thing you'd really like partners to take away from this discussion today, what's the bottom line?
Look, the bottom line is that RISE with SAP is really a journey. Let's not have modifications, build extensions As a way to create a flexible, resilient customer solution and then really look at integration And continued innovation, all of it on this one unified technology platform, which is the business technology platform.
Jayanteesh, Thank you so much. We really appreciate your time.
Well, thanks for the conversation, Diane. It was really awesome.
If you'd like more information about Innovation and Business Technology Platform, To sum it all up, RISE with SAP brings together everything customers need to transform their business in a way that works best for them. It simplifies the transition to the cloud with the right solutions, innovations on a unifying platform and services from our partner ecosystem. RISE with SAP is already GA. We invite you to be part of this journey and get started right away. Visit our special RISE with SAP area on sappartneredge.com We will provide continual updates.
Be sure to check back often to hear the latest. So together, let's rise to the occasion and reinvent how businesses run. Thank
Hi, Jody. Hi, Keith. It's great to have you here today. LIVEKINDLY Collective is a short but very impressive success story. Jody, to kick it off, tell us a bit more about LIVEKINDLY.
How did it become the front runner in the plant based lifestyle?
Thank you for the question. So yes, Lufkinje was founded about 4 years ago. And this is back when plant based really wasn't mainstream at all. It was often covered quite negatively in the media And still to this day, kind of is that I think there's a lot of misconceptions about it, but it's becoming much more mainstream. And so my goal when I created LIVEKINDLY was to really create a community that was based on creating solution focused content, meeting people where they're at in their journey, whether You know, they're adopting a plant based lifestyle for health reasons, wanted to reduce their intake of meat to, you know, help save the planet and combat climate changed and really make this community based on inspiring solution focused content that really spoke to people and, was non judgmental, inclusive and Kind of welcomes people in all walks of life.
So something that's, I guess, attainable, but yet still aspirational. And so this is kind of where we've seen a lot of growth because not everyone wants to identify with a vegan or plant based lifestyle, but a lot of people do want to associate with living a more kinder lifestyle. And so this is something which wasn't really done before in the media. And I think that this is really kind of shown why we've Why we've grown so much today is that people do really want to make a positive impact on the world.
This is a great and pioneering story. Creating such a big community and help people make a positive impact in the world is very impressive. Operating In an increasingly digitized environment, what are the main challenges you are facing?
Yes, that's interesting. I think the age of kind of Consumer access to information is obviously kind of changed a lot over the years and increasing the access to information that we have is just something that is driving consumer change and consumer habits? Consumers are demanding more visibility and transparency of a brand and whether that's food brands Or media, it's really affecting us all. And so it means the brands are held to a much higher standard. And you can't get away with greenwashing so much anymore.
People vote with their dollar. And so we as we develop content, we want to be a voice for the consumer. And so it's important for us To really talk about what are the important things that are driving change in the food system and all of the other kind of industries that are This is going to continue to grow as the Gen Z population are really demanding more visibility, more transparency over You know, where they're spending their money, and this has also affected the plant based food industry as well. People just Want to know that they are buying something that is good and has positive impact. And this also is something that impacts us as a Content creator too, we're also held to that highest standard and we need to create content that is the voice of the consumer, which is exactly what we do.
And this is actually a trend, Jody, we see in many, many industries. Consumers really want to understand what kind of products they are buying And therefore, are demanding more visibility and transparency. So thanks a lot, Jody. Case. LiveKindly Collective was founded just less than a year ago, but it's growing rapidly.
I just talked About the importance of a holistic business transformation. What is your take on that? Why did you choose SAP to support you on that journey?
Christian, great to be here and thank you for that. Our mission is to make plant based living the new norm. And that is obviously a very big Like a digital transformation, this is the protein transformation. And to be able to do that because we start from scratch, we can build it Fundamentally right, built to last. What are the key elements of that?
The first one is culture and values. The second one is to be able to really, from the beginning, you think big, you start small and you act fast. But in the think big, You need to create a total IT infrastructure, which has the ability to go through all the different stages from start up to scale up To a global multibillion business. And so for sure, that is where SAP came in. As for HANA, Was absolutely critical to be able to, from the beginning, said we are born digital and data at the core.
To be able to set that up, that is where SAP became our ultimate critical partner to build the global spine.
Thanks a lot. Kees, this is a perfect example of a beautiful business transformation and for growing the business at global scale. Now, Kees, Tell us please a bit more about how SAP solutions and especially SAP S4HANA Cloud support you here.
Global skill and expertise and local intimacy to be able to be both in Germany, in the rest of Europe, in the UK, in the U. S, Everywhere around the world. And so this notion about how you set up the business with discipline, With ability to scale and to build it so is that you have flexibility is absolutely fundamental. Just think about the critical business processes and how we do that from global procurement all the way to local Support of Adika or Walmart or Alibaba's of this world. And so that is how we have built this up.
I must say is that the S4HANA part is that the flexibility which it now has was really part Of the ability to say this is how we want to do it. We will always look at IT not to own it, not to in any way To have the platform ourselves, but to leverage the IT and that we use our strategic partners To be able to really have the ability to scale it, and that is why and where we use S4HANA.
That's definitely the way to go, Kees. Now what are your plans for 2021 beyond
You know, 2021 will be our year from start up into scale up. We will accelerate the growth in the businesses which we have acquired to become part of the collective, and we will accelerate that growth. Then we will go into the U. S. And into China as new markets, and we will continue to actually acquire and do more M and A.
Again, once we have created this global spine, new businesses can actually plug and play on the back end And be part of the global part. So that is the first part. The second is that we will implement the SAP not only in our launch in the U. S, which we've already done, but we will go from Germany, DACH, Into Nordics, U. K, into the Benelux, into South Africa.
So all parts, whether it is the front end or the factories, will all be Within the first half of this year, we'll all be on the platform. So a big agenda, but ultimately, we will Grow the business, and we will grow the business for more impact because every part which we are selling more, We're getting from animal to plant based positive impact for humanity, our home, which is our planet and those who share it with us, Which is our animals.
This is amazing, Kees. I'm really excited about the future of LIVEKINDLY collective. And you can rest assured that SAP will be on your side and support you in creating exactly that impact. Thank you, Jody. Thank you, Kees, for being my guest today.
I wish you all the best. And of course, stay healthy.
Thank you.
Hi, Roland. Great to see you again and also many thanks for joining us today. Let's start our conversation about why the digital transformation has become so imperative for our customers In response to this crisis, how do you see this progressing in 2021 beyond? And what does it mean for our joint customers?
Well, that's a good question. And actually, it goes back even before the pandemic crisis was starting, when we saw that there's a digital Transformation ongoing in all our markets. It's the demand for higher productivity, for making more taking more advantage out of Assets and the computing power and the data available, they make it possible now to really make this transformation. And again, it's amazing. It happens in all our markets.
So from energy, through infrastructure, to industry and the health care sector. The pandemic crisis was accelerating the whole thing because you obviously saw that whenever you have a digital solution, they can work remotely. Things are still running and keep going. Whenever you have a chance to run your manufacturing site remotely with a high level of automation, you can keep on going. And so therefore, there's a combination of technology, maybe also new business models and pandemic crisis, which really accelerates the whole thing.
This will not stop after 2021 or 2022. We do believe this is sustainable, and it will definitely
I couldn't agree more, Roland. Digital technologies are key to overcome the crisis and, of course, to emerge stronger. How do you see the role of SAP in this context?
Well, I do believe that Siemens as a P, we have very much in common. So what we are doing, we are enabling our customers With technology to really make them staying relevant and make their transformation happening. You do it with your mission critical business processes support where SIP is a leading company. And this connects very nicely also to what Siemens does. We have a similar approach, but in different areas.
So in total, I do believe that SAP has a great chance coming as really as a pure play digital company, sitting on so many Fundamental processes along the value chain to really help in this transformation along with your ecosystem.
Indeed, Roland. I mean, the 2 of us, our teams had a lot of sessions last year to really figure out how can we provide more value to our customers. And it's fantastic how complementary the portfolios of Siemens and SAP are. This leads to the question, How can companies like Siemens and SAP help customers with their digital transformation?
It starts always at the customer and to understand what's the need of the customer, what are their pain points, what hinders them for leveraging their assets better, For driving productivity, reducing quality for failures and so on. And I do believe that this is something where Both companies have something in common. We do have a certain level of domain know how, yet coming from different areas. So we are more on the OP space, the operating technology space, the automation, the manufacturing lines or is it on the ground if it comes to grid control? You are more on the level of ERP, controlling the value chain, supply chain and logistics and the asset management.
So it's a nice combination. And what I'm always saying is the whole transformation starts with very narrow applications. It's give you an example. When somebody wants to optimize the manufacturing side, they come and say, I would like to make my optical inspection better. So now Now you have you're sitting on a very narrow application, working with data and draw conclusions and improve productivity.
Very quickly, these applications become broader. That means once you see there's a failure, the question is, is it design related? So you get all the way up the value chain, enter the supplies if there's maybe a faulty deep supply part. This is where SAP comes into So the moment we go broader, we need this is what I call the ecosystem, different players coming from different areas playing together. Are very strong in the PLM area.
We are very strong in the ERP system. And together, we can really connect the full value chain And make something really magic happen with our customers. And I'd say with our customers because this is important that in very, many cases, We are serving with our high market share in certain industries. We are serving the same customers. We have an ideal starting position to say, let's bring the value together
And just to build on that, Roland, it's great to see that our Our partnership is already delivering great outcomes for our customers by bringing our products closer together, which we have already seen in the 1st month After we announced this partnership, now Roland, having been in the market for more than 170 years, Share with us how does Siemens stay innovative and competitive?
I do believe this is kind of constant change a company has to make, also accepting failures. We had our issues in the past too, where we are really losing out On businesses where we have been in a market leading position and then you have to really constantly change. But yet also To be very clear, you also have to think about what your strengths are and build on it. And this is in the case of company of our Siemens company, for example, Technology. So that you always remind yourselves where are your roots, where you're really good at, but stay tuned because technology is changing so fast, which is Just one more thing is, this is the challenge about this transformation.
Digital Technologies have a shorter cycle time than, for example, developing And you train or gas turbine or SIMATIC. This is a lead time of 5 years or 3, 4 years, 5 years. Now we are talking about cycle time of month. So therefore, we have to also change the way how we are running our company in a different way. So stay always tuned.
And Last point is, it is at the end of the day, it really it's about people. If you have the right people in place, empower them. And if you foster this kind of what we call growth mindset The people are always open and honest, thinking about what are we good, we have weaknesses, and be honest to ourselves And then go for it and put all the effort into it to change it. Then you have a high chance to survive also after 170 years.
This is exactly right, Roland. I mean, every transformation starts and ends with the people, with the end users. And actually today, it's all about how SAP can help with the business transformation of our customers. As a long standing partner, How can SAP help with the transformation of Siemens?
Well, I think it goes along the line of what I described before when we talked about any customer who is using SAP technology, US and manufacturing footprint, I mean Siemens is one of those. We have a long, long, I think 27 years partnership where we're using your products and always and Now we are at a point where we also want to move our ERP system to the cloud. So we want to do that together. And since we have Also 27 year grown ERP system with all the legacy behind. I tell you, I told my people, I don't want to move make a copy paste What we have to the cloud, so we are working on processes.
This is where SAP can bring a lot of expertise because you see it from other customers too. What can we learn? So adapt it and then make the move to the cloud with a benefit of having then shorter innovation cycles Sitting on your shorter innovation cycles. And I think if we do that together, we can definitely improve Siemens operations,
That sounds exciting, Roland, and count on us. SAP will be on your side. And indeed, To embrace these new opportunities together. Thank you, Ola, so much for joining us today. I'm looking forward to talking to you soon again.
Thank you, Christian, for having us. And I'm very much looking forward to the next chapter of the partnership between Siemens and SAP.
Take care, and all the best, Roland.
Thank you, Christian.
Hello and welcome everyone to the investor update on Our new cloud offering, RISE with SAP. So, earlier today, our CEO, Christian Klein, kicked off the launch event with a keynote. And if you haven't seen it so far, I strongly recommend you do that first to get the big picture and also understand how we position this offering with our customers And our partners. Now in a minute, I'll have the great pleasure to chat with our Chief Financial Officer, Luka Mutic about this new offering And what it means from an investor perspective. But before getting started, as you all know, I quickly visit my favorite Topic, which is the Safe Harbor statement.
Matters discussed during today's presentation may contain forward looking statements, which are subject To various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAT's future financial results Now with that out of the way, I think we can move into our fireside chat. And first of all, welcome, Luca, and thanks for taking the time today. So in our Q3 earnings call, in October, you explained SAP's updated Strategy and our accelerated move to the cloud and our intent to reinvent how businesses run. And clearly, an important part of that is To accelerate the move of the customer base or our customer base to the cloud.
And so today, you announced a new offering called Rise with SAP. Before we move into more detail, could you please briefly explain how this new offering fits into our overall strategy? Yes. Thanks, Stefan, and I'd be very happy to do so. But first, I need to get 2 things out of my way.
Why is it that you always get to sit right next to the fireside? I think that's really unfair. But more importantly and more seriously, a warm welcome Welcome everybody also from my side and thanks a lot for your interest in SAP. Now to turn back to your question around our strategy. I mean, in a nutshell and at a high level, I think it was pretty consistent for a long time now.
We want to help our customers become intelligent enterprises. And that really has 3 key aspects. 1st, to deliver a powerful modular, homogeneous and tightly integrated suite. 2nd, to enrich that suite with intelligent technologies and third, to move our customers to the cloud, not for the cloud's sake, But to increase their operational efficiency, their agility, resiliency and more importantly, even The frequency and the speed at which they can adopt new innovations. And RISE with SAP ultimately drives all three of those aspects.
Has a strong focus on enabling a holistic business transformation for our customers, including an accelerated move of core ERP processes To the cloud, it therefore builds on our highly successful cloud market entry during the last decade, which was more based on specific lines of businesses Like talent management or travel and expense management or procurement for that matter. So if I understand you correctly, this is now about Accelerating the move of our core ERP processes to the cloud. And these core ERP processes, they make up the biggest part Of SAP Solutions portfolio. So isn't this very different from our lines of business applications when they move to the cloud? Yes.
You're making a good point here, Stefan. That is certainly true. And it's not surprising that cloud solutions first emerged in business areas that are less complex And non differentiating in nature and therefore exhibit higher levels of standardization. Now we are indeed moving the heart of company operations to And with that, yes, we are talking about a different animal. We're talking about processes that need to run 20 fourseven That are clearly mission critical for our customers.
They can be very complex. And in many cases, they also have industry specific flavors to them. These are processes that certainly allow our customers to differentiate themselves from their competition. And that's why customers admittedly historically have often modified their systems in those areas and tailored them exactly to their needs. Now The good news is that we clearly understand how mission critical these processes and systems are, and we also know very well how to run them in the cloud.
S4HANA Cloud is our core ERP offering in the cloud and it actually already has close to 3,000 customers that was At the end of Q3, and at that same point in time, it had already a cloud revenue run rate of
more than
€700,000,000 growing in steep double digits. We offer it from single tenant to multi tenant. We provide monthly updates and it already covers around 80% But also clearly so far it has been mainly deployed by net new greenfield customers, Also by midsized companies or their subsidiaries and by global enterprises from our installed base Who are coming from industries that have less complex process requirements, let's say, like professional services. So all of this is already going extremely well, but we feel very confident that we are now in a position to further accelerate this transition to the cloud. Okay.
And this is where RISE with SAP comes into play. So does that now also help existing customers with more Complex, more customized core ERP processes to move into the cloud? Yes, exactly, Stephan. That's actually the essence? That's what RISE with SAP is all about.
Now to be clear, RISE with SAP is an offering for customers at all departure points, whether they currently have lean and simple or deeper and more complex landscapes. But the offering will be In particular and especially of interest for our larger multinational and longer term ERP customers, Customers that are in verticals with a higher process complexity, let's say, like in discrete manufacturing or in process industries, Customers that have invested into the customization of their on premise SAP solutions by inserting custom code into their applications. And that frankly, in many cases, are not ready to make that move to the public cloud solution just yet in the very short term. And with them, we are now taking a much more proactive role in supporting their transition to the cloud than perhaps in the past. That is actually the key change.
With RISE with SAP, we are now providing a holistic transformation offering to our customers to run and transform their businesses in the cloud. This is mainly relating to core ERP processes, but not entirely. Simply put, we take Customer landscape into the cloud basically the way it is currently set up. So typically, this will initially result in a hybrid cloud landscape With a significant share of private cloud. In doing so, however, SAP takes holistic responsibility for all of the key elements of a solution.
The applications and support obviously, but also management services and the provision of infrastructure as the sole responsible vendor and contractual Delivery though of those elements will be supported not only by SAP itself, but also by our partners We'll supply a share of the required capacities. And then very importantly, we work with our customers to modernize and simplify their landscape. So over time, these customers can shift all or at least major parts of their landscape to our public cloud ERP solutions As they then progressively adopt our intelligent enterprise architecture. Thank you. That's a very helpful overview.
I suggest we walk through that in a little bit more detail, maybe using a sample customer. And Maybe you can elaborate a bit on what are the steps of this process and what are the elements of the new offering? Yes. I think an example should be helpful here. So let's assume a long term customer of SAP, a multinational typically will run SAP ECC in their own data center.
And on top of that, maybe they have a few SaaS solutions like Ariba or Success Sectors or commerce that they're running already. Over time, they have certainly highly modified and customized their on premise landscape To fit the specific needs of this customer and that's their point of departure. And now this customer wants to increase Their resiliency, but also their agility and speed and transform into an intelligent enterprise. Now the first step and element Of how RISE with SAP will help them
on that
journey will typically be a business process review And potentially a redesign of their existing business processes. And this is where our Business Process Intelligence solutions can be of great help. Business Process Intelligence includes discovering, mapping and analyzing their processes, benchmarking them against best practice, Providing actual and concrete recommendations how to adapt and automate them with immediate links to our workflows, to RPA and other AI services, But also the already readily available functionalities of SAP S4HANA and then basically adapt The corresponding business process is on the journey to Sfour. Now building on that comes then the technical migration as a second element of the offering. This is the migration of the existing landscape into the cloud.
As we are talking mission critical processes, this migration will be highly automated And we'll have to be performed at near zero downtimes. And then building on the results of the business process redesign and the tools and services that we are And through SAP and partners as part of RISE, the landscape will already move a lot closer to the standard As customers can get progressively rid of modifications and custom code and clean up the data layer. So in our example, The conversion from ECC to S4HANA would also happen as part of that migration step. That makes sense. But to be clear, the status achieved then would typically be the starting point to building the intelligent enterprise.
So What are the elements that come into play to get there? Yes, you're absolutely right. RISE with SAP goes far beyond the two steps that we have covered so far. The next step is obviously that we are exchanging the infrastructure layer for the customer. After the migration is completed, Their landscape will run on a public cloud infrastructure.
And this will have great benefits in terms of resiliency, TCO, But also scalability and flexibility. This is the 3rd element of the offering. And customers here Have really a maximum flexibility. They can leave the provider selection to SAP or they can opt for their provider of choice, be it SAP itself Or one of our hyperscaler partners. But no matter which infrastructure operations partner they chose, SAP Will be and remain their single point of contact.
Now moving up to the platform layer, The 4th element of RISE is the business technology platform, which is the transformation engine, if you will, for our customers. That's the platform on which they will build, integrate and extend. So on this open platform, our customer And their respective partners from our ecosystem can quickly develop innovations to complement SAP solutions. Business Technology Platform is then also the place to access all of SAP's main solutions, whether it's cloud Or any remaining on premise solutions, which all now share 1 semantical data model, 1 AI and analytics layer, 1 security identity and authorization concept as well as the same application business services Such as one workflow management. You've heard me talking about this a lot already in the past.
So put simply, It was never easier to build differentiating capabilities in order to enable new business models and run processes end to end. And that is hugely important As it helps our customers remove the historically grown source code modifications and turn them into platform based extensions That's it next to the main code, which in turn is a prerequisite to move to a standard code based public cloud solution. And then as the 5th element, we're including within RISE with SAP access to our business network. This is the world's largest network by a wide margin, and it allows our customer to digitize their business processes that run across The entire supply chain ecosystem or connect with their downstream business customers. And that finally then takes us to the 6th and last element, Which is the cut over to our public SAP S4HANA Cloud with embedded AI, machine learning and advanced analytics.
This is the driver for agile and responsive organizations, not just at the edges, but at the core. And by the way, We will also have sustainability embedded as a new dimension of success right into transactional and analytical applications Because sustainability will become a dimension of corporate decision making just like cost or growth. So that's the holistic journey that we're taking this customer on with us? Okay. And the total of this is then the business transformation in the cloud You've talked about.
So, if we stick to the sample customer you talked about earlier, Do you really expect them to move completely to public cloud ERP in the very near future? Well, first off, I truly believe that our customers have been very clear with us and with the market on what they truly want these days. They're not looking for maximum customization at all costs any longer. Instead, they are increasingly looking for maximum operational efficiency As well as the ability to consume high rates of innovation. And this is exactly what we will offer, a clean core, a truly clean core That can be easily expanded through our business technology platform.
Now nevertheless, I want to turn back to your question because quite frankly, the answer to that Depends a lot on the specifics of the customer's point of departure. For some customers, this can certainly be achieved within a year. But if we are talking about a global company with heavily customized systems, as in our example that we covered just before, That process will probably take several years. And will such a company ever run-in a purely public ERP cloud? Probably not as the need for competitive differentiation in a few areas will likely be too high.
So in that category, We'll certainly see a lot of hybrid landscapes and we will see that for a longer period of time. But even here, I'm sure that we can get the vast majority Of the ERP processes to public cloud over time. But always remember this, one of our strategies paradigms is To leave no customer behind, this is extremely important, has been all the time for me. We are giving them choice how to best run their landscape Depending on their specific situation and requirements, but also clear recommendations from SAP, of course. And this will also continue to include The option of classical on premise licensing and deployment, even though I'm very confident that for the lion's share of our customers, the vast majority RISE with SAP will easily prove as the superior solution.
Totally understood. So I think based on this very comprehensive Scope of RISE with SAP, I immediately understand why this offering is so interesting for customers. But you talked about the increased customer lifetime value? So does it make economic sense for them as well? Or in other words, why would We must be willing to pay more for this.
Well, it does, absolutely. If it didn't, then we would be not Well served to establish this offering and we have tested it and piloted it extensively with customers. And so we have a good view Of what customers can achieve. And customers will be able to significantly reduce their total cost of ownership As compared to operating their solutions on premise on their own infrastructure. Remember that next to software and support under RISE, We also provide the infrastructure and services to the customer.
So we ourselves expand our role and thus our share of wallet, But customers as well get a lot more from SAP. And at the same time, they have the opportunity to turn CapEx into OpEx As a welcome side effect for many customers. Now if you on the other hand compare our offering to the customer Of deploying directly on hyperscaler infrastructure and just hire a system integrator to manage the landscape, We believe that we can match the economics of this alternative value proposition, but we can add the transformation Aspect on top in a way that only SAP can because just cloudifying the status quo on a hyperscale infrastructure is simply not enough. That's not a true business transformation. Plus and that's also an important aspect with RISE customers get one contract From one responsible vendor for one price across their entire landscape, that is simple and more as well than staying in the old fragmented approach with multiple vendors for the different pieces of the stack where nobody is truly responsible for the overall outcome for the customer.
As you explained, you will increase SAPs, Shell, Wallet, over time. What does it mean for your ecosystem for the partners, the hyperscalers and the system integrators? I mean, Don't you compete more with them now going forward? No, absolutely not. I would say on the contrary, RISE with SAP Makes partnering actually way more important than ever before and it opens up new great opportunities to That's why we talk to our partners first actually even before engaging with customers.
And let me start with the hyperscalers and emphasize that I consider All of them very strong and extremely important strategic partners to SAP. Yes, as we have discussed on previous occasions, there is Also an element of competition here, but that's frankly not new. That has been around in our industry as well as with these partners in some cases for 20 years. But the joint opportunity that we have in front of us actually far outweighs this aspect. And what is that opportunity?
Well, it is simply the shared Goal of bringing our customers to a public cloud infrastructure. And from a hyperscaler's perspective, those are clearly some of the chunkiest workloads they could ask for Out there in the industry, the potential is truly considerable. Remember, we are talking about an estimated market of more than €10,000,000,000 For the infrastructure workloads of our customer base that can move to the cloud. So we are all well served in collaborating to accelerate Move to the cloud. And the hyperscalers by the way share this view as well as you can tell from the expanded strategic partnership announcements That Christian talked about today.
As to Microsoft specifically, for example, Christian has already explained our Embrace 2.0 partnership, Which is centered around the interoperability of SAP solutions with Microsoft Teams. Nevertheless, What we have to ensure and what we will ensure and that is clearly understood by our partners is that our customers continue to follow The path of becoming an intelligent enterprise with SAP, meaning that they continue to turn to us as their primary partner, Not only for ERP and applications, but also for innovation and holistic business transformation. And this happens mainly on the platform or the pass layer. That's why this is an integral part of RISE with SAP. And what about the system integrators and the value added resellers, I mean, they typically work with your customers to implement, to Send in to customize a set solution.
So what role do you foresee for them in the future? Yes, that's actually very straightforward, Stefan. Look, service and VAR partners have always been of paramount importance to SAP and nothing changes here. They continue to play a key role in the transformation There's actually a few positive changes as compared to the on premise world. Now under rise with SAP, as I've said before, we take a more role towards the customer, but we also work much more closely with our sell and service partners.
They will continue to support transformations And they are imperative not only for high quality projects, but also for ensuring customer success through the entire customer lifecycle. When you think about the transformation phase of that customer journey that I've gone through before, partners will leverage their industry domain and technical expertise To transition customers to become an intelligent enterprise with Sfour as the digital core, when you then turn to the innovate phase, The Business Technology Platform is not only our platform for innovation, but it's also an integration and development platform for our entire ecosystem. Partners can build extensions on top of our enterprise applications based on their business process knowledge and their technical know how. And then 3, when we come to the continuous run and optimize phase, business transformation as a service means that SAP and our ecosystem We'll be able to enable next generation intelligent end to end business processes by tightly integrating Both SAP as well as partner offerings. In addition and very importantly and that's a great business opportunity, our partners will be able to contribute application Management services for our RISE customers and this represents a massive opportunity where they can also scale very fast Also compared to if they would go 1 single project by 1 single project, they can become really an application management service provider Together with us for a large share of customers in a very short time frame.
So it's no surprise that actually our most strategic bar and service partners We discussed a lot the customer benefits and the role of the ecosystem. I think we should now move to the investor And on the Q3 earnings call in October last year, you provided a lot of detail around the financial impact of is this new strategy for SAT? So could you please briefly outline again why this shift Strategy makes financial sense for
SAP. Absolutely, I will
be happy to do that. But again, first and most importantly, This shift makes sense for us because it is strategically the right thing to do because this is where the market is turning, where Customer needs and preferences are turning, and it provides an important option for our customers and helps them to be more successful. And in the long run, and I've seen that many times during my career, the best recipe for long term sustainable financial success It's really follow your customers and their preferences and needs. And that is what we are actually doing. Now nevertheless, I'm also very happy to explain the financial benefits for SAP For sure, after all, this should be a win win win situation for our customers, our ecosystem partners, But also obviously ourselves.
And we can do so, I'm very confident because we remove inefficiencies from the system That come from the current fragmentation. So for us, it is most important that this move allows us to scale faster And reach more users through the quicker transformation of our installed base to S4. 2nd, we We can also maximize the reach of the business technology platform as an innovation platform and hence drive platform as a service revenues. Then 3rd, I'm also very confident that Risys SAP will allow us to upsell more easily into adjacent areas of our portfolio, Let's say like SuccessFactors, Ariba, Concur and Fieldglass, Experience Management, our CX Customer Experience Solutions and others. On top of that, almost as a side effect, we're also expanding our role from a software vendor to a holistic cloud provider For a significant part of our portfolio, this means that we not only deliver software and support services, but also the required IT Structure operational services such as application management and the platform as a service layer, as well as access to the business And the business process intelligence services that I've been talking about.
So we are effectively expanding our share of wallet. And with that, we will obviously also increase customer lifetime revenue and value. You have been mentioning this already. At a steady state, we expect to see a like for like uplift from our on premise situation to the rise of SAP state Of a bit more than twice the amount of support revenues that we have been getting from the same customer in a like for like situation to cloud revenue. And in combination, these effects that I just outlined make us very confident that we will achieve our target of more than 22,000,000,000 euros in cloud revenues in 2025, which is actually a 21% plus CAGR over the next 5 years.
And if I may add, 2025 cloud cross margin of approximately 80% Across the entire portfolio. That's a very important addition. Thanks for mentioning this. And absolutely, we are more than committed to delivering this target as well. Very good.
Thanks, Luca, a lot for taking the time today for providing all the background. So in 2 days, on 29th January, we'll be disclosing our full set of Q4 earnings, and I'm looking forward to that event. We'll have a detailed discussion around the Q4 performance and our 2021 outlook and of course, we'll provide more color on our strategy of the accelerated move to the cloud. Thanks a lot, Luca. Yes, sure.
My pleasure. And have a great day, everyone. Thanks so much for joining us for this session. And I look forward to seeing you back at earnings.