alex saric - global vice president, marketing · thriving in the digital economy how procurement...
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Thriving in the Digital EconomyHow Procurement Can Lead the Way
Alex Saric - Global Vice President, Marketing
Public
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2
The Digital Economy: This Time It IS Different
Sources:
Business Insider, www.emarketer.com, SAP Fact Sheet.
Impact Report, Harris Interactive. Colin Shaw and John Ivens, 2010; Deloitte Millennial Study, 2015; Shell, 2014; WRI, 2014; SAP SE, 2014. Towers Watson, 2012,
Digitization of Customer ExperiencesReal-time, contextual experiences
across every channel
87%of first generation
digital natives
are connected to
the internet while
watching TV
Digitization of ResourcesData is a new asset. The Network is the new electricity.
savings through
connected vehicles$5.6T
Digitization of WorkWork is no longer a place, but an activity
83%of executives plan to
increase use of contingent
workers in the next 3 years
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3
Reimagine the Boardroom as a True Digital Enterprise
CMO
What if I could predict
what each one of my 1.5
Million customers wanted
before they even knew
it?
CPO
What if procurement
happened with no
human intervention and
parts reordered
themselves?
CFO
What if our balance
sheet, wrote itself?
CEO
What if I could ask any
question of my business,
and get insightful, fact based
answers in seconds, not
days
CHRO
What if I could simply
click a button to get
anyone, anywhere to
work for us when we
need it?
CIO
What if I was free to
spend 90% of my budget
on securing the future,
instead of managing the
past?
Complexity costs companies up to 10% of profit
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4
The Key to Success Lies in Harnessing the Power
of Digital Technologies
86% of Global CEO’s are investing in iOT, cloud, mobile, and big data and personally championing their use
Sources:
McKinsey Study, 2013; CloudTweaks.com; Ericsson, 2014; CIO Insight, 2014; Adweek, 2014, 18nth Global CEO Survey, PWC
Mobile
90%of the world’s
population over
6 years old will
have a mobile
device by 2020
Internet of Things
212 Billionconnected devices on the internet of things
by 2020
Big Data
44trillion gigabytes
of data generated
by 2020
Cloud
36%of all data will be
stored in the cloud
by 2016
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5
Digital Disruption Isn’t Just a Technology Shift
SeamlessData-Driven Connected++
Sophisticated experiences made Simple
Used end-to-end-across the value chain
Deployed at massive Scale across networks
Real-time information across the internet of things
Global Leader in Cleaning
Solutions
Global Leader in Agricultural
Equipment
Leader in on line movie
rentals
Global Leader in Air
system technology
Now monetizes
compressed air,
not just
compressors
Reduced 5700 sq.
ft. stores to just
12 sq. ft.
Turned reactive
downtime to
predictive
availability
Seamless
commerce without
any human
intervention
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6
Procurement Leaders Know Change is at Hand
Sources:
Oxford Economics Study, 2015; The Future of Procurement
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7
Time to Evolve Again
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8
“…plans are useless, but
planning is indispensable.”
- Dwight D. Eisenhower
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9
The Technology Imperative
Mobile
technology
34%
Business
networks
40%
Cloud
computing
30%
Big data
24%28% 36% 31%Executives
36%PractitionersExecutives Practitioners Executives Practitioners Executives Practitioners
Which economic and technology trends do you
expect to have the most significant impact on the
procurement function over the next three years? European respondents say (top 3)…
Sources:
Oxford Economics Study, 2015; The Future of Procurement
SeamlessData-Driven Connected++
Sophisticated experiences made Simple
Used end-to-end-across the value chain
Deployed at massive Scale across networks
Real-time information across the internet of things
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10
Business Networks Enable Agile Procurement
Discover
• New trading partners and
communities
• New staffing, contingent labor or
goods and services
• New business opportunities
Connect
• Trading partners anytime, anywhere
• Any device, back-end system and level of technical ability
Collaborate
• Comprehensive set of inter-
company collaboration
processes
• Any commerce category
and/or spend type
Gain Insights
• Unique analytics and
benchmarking data
• Real-time alerts and
notifications
• 3rd party data, risk and
insurance information
YOUR SUPPLIERS
Business
Networks
Your
CompanyYOUR
COMPANY
YOUR SYSTEMS
YOUR PEERS
PARTNERS
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11
SAP Offers the Only End-to-End Digital Business Solution
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12
But You Have to Change Your Mindset
