ibu chemicals november 2011 · 1960 1970 1980 1990 2000 2010 2020 mainframe 1m+ units microcomputer...

SAP In the Chemical Industry

IBU ChemicalsNovember 2011

© 2011 SAP AG. All rights reserved. 2

SAP Today

SAP’s Industry Strategy

IBU Chemicals

Chemicals Portfolio

2

3

4

1


SAP Today

54,000+ SAP employees worldwide

120countries

24industries

37languages

75country offices

1,200+services partners worldwide


SAP is the world’s leading enterprise application company

SAP does business with…170,000 Customers • 120 Countries • 37 Languages • 34 Global Technology Partners

2,400+ Certified partners • €12.5B 2010 Revenue • +26% SW Growth in Q1

#1 #1 #1in enterprise applications

in applications for small & medium enterprises

in business analytics in enterprise mobility

3%

3%

5%

14%

23%

Salesforce

IBM

Microsoft

Oracle

SAP

Share of Total Enterprise Applications Market, 2009

12%

14%

15%

22%

IBM

SAS Institute

Oracle

SAP

Share of Business Analytics Market, 2009

8%

9%

10%

20%

HP

IBM

Microsoft

SAP

Share of Enterprise Mobile Device Management

6%

7%

14%

18%

Microsoft

Sage

Oracle

SAP

Share of ERP Market for Small and Medium Sized Businesses, 2008


Our Industry Expertise Helps Companies Run Better


Innovation-driven

Mobility

Cloud

In-Memory


Mobility

Computing growth drivers over time, 1960 -2020EDevices (Millions)

Mobile Internet

10B+ Units

1960 1970 1980 1990 2000 2010 2020

Mainframe

1M+ Units

Microcomputer

10M+ Units

PC

100M+ Units

1,000,000

1

10,000

100

DesktopInternet

1B+ Units

Morgan Stanley


Big Data

2009:0.8 ZB*

2020:35 ZB*

The amount of data created

and replicated will grow 44x

90% of the data in the world today has been created in the last two years alone**

*1 Zettabyte = 1 trillion gigabytes, ** IBM

IDC Digital Universe Study, sponsored by EMC, May 2010


Price Development of Storage Technology

0.01

0.1

1

10

100

1000

10000

100000

Flash DRAM Disk

Pric

e ($

) / G

B

1995 20152011

DRAM10X-100X faster than Flash – and cost-competitive

Credit Suisse


Cloud

80% of new software solutions will be cloud services by 2011

$160B cloud market by 2020

1/3of all software purchases will be SaaS by 2015

Forrester, IDC


Execution-focused

In-MemoryComputing/DB

Mobility

Cloud

BI/Analytics

Middleware

Core ERP + Suite

BI/Analytics

Middleware

Core ERP + Suite

110 Bn. $

220 Bn. $

2010 Today

Sybase Unwired Platform, Afaria, Mobile Apps

SAP BI 4.0, Analytic Apps

SAP NetWeaver

SAP ERP, SAP Business Suite for 24 Industries,specific Line-of-Business-solutions,Rapid Deployment Solutions

SAP Business ByDesign, Line-of-Business-On-Demand, Collaboration

HANA, Sybase ASE, IQ

Market Size


On premise

On demand

On device

Technology foundation

Orc

hest

ratio

nSAP's Product Strategy

Collaboration Analytics Mobile

SAP Business ByDesignLoB on demand

• All devices• All user experiences• Easy to extend

• Instant value• Line of business or suite• Integrated to on premise

• SOA-enabled• Best-practices packages• Non-disruptive enhancements

• Platform• In-memory


SAP Today


IBU Chemicals

Chemicals Portfolio

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3

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1


Solutions for 24 IndustriesGood coverage of top 1000* companies

24Aerospace & Defense

AutomotiveBanking

ChemicalsConsumer Products

DefenseEC & O

EducationHealthcareHigh Tech

IM & CInsurance

Life SciencesMediaMillMiningOil & GasProfessional ServicesPublic SectorRetailTelecommunicationsTransportation & LogisticsUtilitiesWholesale

93%87%71%92%

80%54%45%57%98%

75%

90%49%

100%75%88%72%73%86%55%79%84%96%72%69%

*) Source: “Fortune 2000 companies” published by Forbes Magazine


Supporting mission critical processesSAP delivers significant business value

Oil & Gas: mio barrels of oil per day40

Utilities: billion utility bills per year2.5

Chemicals: mio tons of chemicals per day4

Automotive: car engines per day32,000 Consumer Products: world beer production75% Retail: mio retail transactions per day$330


From industries to value chains – focus on end-consumersConsistent theme across all industries

MillProducts

Mining

Chemicals

Automotive

Defense

Oil & Gas

Healthcare

Engineering, Construction & Operations

Industrial Machinery & Components

HighTech

Aerospace & Defense

Life Sciences

Retail

Utilities

Higher Education & Research

Insurance

Consumer Products

Wholesale Distribution

Professional Services

PublicSector

Banking

Media

Telecommunications

Travel & Logistics Services


Gartner on SAP’s Industry Strategy


SAP Industry Strategy

"Best-Run Businesses"

IT value

Bus

ines

s va

lue

Point solutions Networked solutions

Monolithic solutions

Technology Foundation

On Demand

On Premise

On DeviceO

rche

stra

tion Business value

• Business Strategy• End-to-end Value Chains • Business KPI

IT value• Total cost of ownership• Integration• Flexibility

Help companies to run, grow and transform their business as they evolve into multi industry value chains


SAP solutions for industries span the whole product portfolio

On Demand

On Premise

On Device

Orc

hest

ratio

n

Technology Foundation

All devicesAll user experiencesEasy to extend

Instant valueLine of business or suiteIntegrated to on-premise

SOA-enabledBest-practices packagesNon-disruptive enhancements

PlatformIn- Memory Computing


P E

Qtr

P P

Qtr Qtr Qtr

Three speeds of innovations

Today‘s solution Future directionPlanned solutions

Continuous innovation

Strategic innovation

Breakthrough innovation

P = Packaging and continuous enhancements

R= Next releases and new solutions

E = Evolution AND new horizons

SAP solution portfolio

P R

Qtr

P P

Qtr Qtr Qtr

Year

Multiple years

Qtr = Quarter

Year


Quarterly innovations

Customer Connection Cycle (CCC)

For existing customersProvides new functionality or improves existing, but no bug-fixingFocus on improved usability

Rapid Deployment Solutions (RDS)

For new customers or existing customers with white spacesPackaging of existing functionalityNew standard for shipment of innovationsFocus on easy implementation


Banking Retail CP Discrete Mfg.

Process Mfg.

Services Utilities Public Sector

Health Science

ProductDevelopment

Procurement

Supply Chain

Manufacturing

Marketing, Sales & Service

Finance

HumanResourcesEnabling Technologies

Yearly Strategic InnovationsInnovations 2011

Multi Channel Multi Channel

Demand Driven Supply ChainTransportation Management

Energy Management

HCM User Experience

Commodity Trading and Risk ManagementFinance User Experience

Recipe Management

Sourcing to Pay

RMB

anki

ng P

latfo

rm

E-C

are

Manufacturing Execution Integration

Application Life-Cycle Management

Business Process Orchestration / Master Data Governance

Enterprise Information Management

MEI

Ret

ail P

latfo

rm

O2C Offer to Cash


SAP Today


IBU Chemicals

Chemicals Portfolio

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3

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Role of the IBU at SAP

SolutionManagement

IndustryRepresentation

StrategicProjects

The IBU is the “face of SAP” in the Chemical industry, and the advocate for customers inside SAP.

Representation runs through:

Thought LeadershipSAP (internally)CustomersAdvisory Councils & User GroupsMarketplace (events, publications, etc.)

The IBU’s primary responsibility is to ensure alignment between SAP’s solution portfolio and the needs of the Chemical industry.

Responsibilities include:

Industry StrategySolution PackagingDevelopment SupportIndustry RequirementsValidation & TestingEducational Assets Dev’tDemo supportField TrainingCustomer Engagement

The IBU advances strategic initiatives on behalf of industry customers to enhance the utility of current tools and drive new sources of value delivery.

Projects drive value through:

Continuous improvementsNew solution innovationCustom development projectsPartner engagementsCustomer loyalty & retentionRegional business development


WalldorfWalldorf

ShanghaiShanghai

PhiladelphiaPhiladelphia

IBU Chemicals has global responsibility for the SAP Chemical solution

BangaloreBangalore

TorontoToronto

SAP’s Chemical Industry Leadership


IBU Experience

Colleagues with direct chemical industry experience from:

Combination of Chemical Engineers, Chemists, IT Professionals, Product . Development, and Business managers.


SAP Chemical Customer Base Growth: 2001 – 2010

1,881 new customers added in last 9 years – with increasing velocity as the industry returns to growth

Customer base expanding in both weak and strong markets

New customer growth consistent and sustained

Significant and well-known brands added each year

Strong chemical base drives ongoing development

1,078

2,959

93156

189

73

2001 2002 2003 2004 2005

Despite market consolidation 1,881 new customers added

2006

243

2007

221

2008

366

2009

260

280

2010


Industry Council and Community Activities

Chemical Executive Advisory Council (CEAC)

Chemical Industry & SAP Working Groups

Business Process Expert Community

Working Groups

S&OP

Sustainability

Manufacturing

Mobility


SAP Today


IBU Chemicals

Chemicals Portfolio

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3

4

1


SAP Helps Chemical Companies to…

Safely optimize asset performance and utilizationSynchronizing business and operating functions, providing data driven decision support, and proactive risk and safety management.

Ensure reliable order fulfillment at maximized profitabilityManage pricing, supply and delivery to reliably meet demand at minimum cost.

Drive superior returns on product innovationLink market driven product development with portfolio strategy, product stewardship and delivery to market.


Benefits and KPI’sBenefits and KPI’s

Optimized Operational Equipment Effectiveness (OEE)Reduced energy consumption per unit product producedReduced safety incidents and regulatory infractions (safety performance) .


Optimized Operational Equipment Effectiveness (OEE)Reduced energy consumption per unit product producedReduced safety incidents and regulatory infractions (safety performance) .

Customer ExamplesCustomer Examples

Nova Chemicals improved maintenance scheduling compliance by 22%Valero reduced annual energy consumption now approaching $200 Million annually.Nova Chemicals reduced reactive, emergency work by 47%


Nova Chemicals improved maintenance scheduling compliance by 22%Valero reduced annual energy consumption now approaching $200 Million annually.Nova Chemicals reduced reactive, emergency work by 47%

Safely Optimize Asset Performance and Utilization

Synchronizing business and operating functions, providing data-driven decision support, and proactive risk & safety management


Manufacturing Integration and Intelligence and Energy Management

Natively Integrated

Risk Management

Enterprise Asset Management

Quality Management and Laboratory Information

Management Systems (LIMS)

Production Planning / Detailed Scheduling)

Analytics – Dashboards, KPI’s, Trends

Natively Integrated

SafelyOptimize

AssetPerformance

andUtilization

SafelyOptimize

AssetPerformance

andUtilization

Safely Optimize Asset Performance and Utilization



Enhanced delivery performanceProfitable order fulfillmentReduced inventories / net working capitalImproved customer service


Enhanced delivery performanceProfitable order fulfillmentReduced inventories / net working capitalImproved customer service


BASF managed ocean-freight logistics throughout Hurricanes Katrina and Rita, maintaining customer service levels and avoiding shipment damagesBorealis achieved superior customer service with an On-Time-Delivery rate of 97.5%, (industry av.: 87.4%)Rohm & Haas reduced supply coverage by 15 days and reduced safety stock by 55%


BASF managed ocean-freight logistics throughout Hurricanes Katrina and Rita, maintaining customer service levels and avoiding shipment damagesBorealis achieved superior customer service with an On-Time-Delivery rate of 97.5%, (industry av.: 87.4%)Rohm & Haas reduced supply coverage by 15 days and reduced safety stock by 55%

Ensure Reliable Order Fulfillment at Maximized Profitability

Manage pricing, supply and delivery to reliably meet demand at minimum cost


Price and Margin Management

Supply Chain Planning and Scheduling

Sales and Operation Planning

Supply Chain Performance and Risk Management

Enterprise Inventory Optimization

Transportation Management and Extended

Warehouse Management

Ensure Reliable Order

Fulfillment at Maximized Profitability

Ensure Reliable Order

Fulfillment at Maximized Profitability

Natively Integrated

Natively Integrated

Ensure Reliable Order Fulfillment at Maximized Profitability



Ensure profitable revenue streams , brand protection and accelerated time to marketMaximize return on R&D investmentsReduce compliance costs as % of revenues


Ensure profitable revenue streams , brand protection and accelerated time to marketMaximize return on R&D investmentsReduce compliance costs as % of revenues


Rohm & Haas protected $2Bn in annual European revenue through enhanced product complianceNB Coatings optimized data quality, centralized data structures, increased speed to commercialization, and mitigated compliance risk through automationDow Corning cut time to comply with requirements of new geographies by over 75%


Rohm & Haas protected $2Bn in annual European revenue through enhanced product complianceNB Coatings optimized data quality, centralized data structures, increased speed to commercialization, and mitigated compliance risk through automationDow Corning cut time to comply with requirements of new geographies by over 75%

Drive Superior Returns on Product Innovation

Link market-driven product development with portfolio strategy, product stewardship and delivery to market


Integrated Environmental, Health

and Safety Management

REACH Compliance & Product Stewardship

Project and Portfolio Management

Collaborative Product Development

Sustainability / Sustainability Performance Management

Integrated Recipe Management –

Development to Production

Drive Superior

Returns on Product

Innovation

Drive Superior

Returns on Product

Innovation

Natively Integrated

Natively Integrated

Drive Superior Returns on Product Innovation


Chemicals 2011 Solution Portfolio

SOLUTION TODAY

Drive Efficient HR Operations Talent ManagementCore HR & Payroll

Human Resources

Financial Value ChainTreasury and Financial Risk Management Commodity Risk ManagementFinancial Shared-Services FrameworkSustainability StrategyManage Risk and Compliance for FinanceManage Financial PerformanceAccelerated Financial Close

Finance

Continuous Product and Service InnovationIntegrated Product DevelopmentREACH Compliance and Product Stewardship

Product Development

Insight and AnalyticsEnterprise Information ManagementIT Security and ComplianceBusiness IntegrationIT Operational and Service Excellence

Information Technology

Price and Margin ManagementE-CommerceSales Force ManagementCustomer Service Contact Center

Sales, Marketing and Service

Collaborative Demand and Supply PlanningLogistics and Fulfillment ManagementManufacturing Network Planning and ExecutionInventory Optimization

Supply Chain

Designing, Building and Commissioning of AssetsManufacturing Visibility and PerformanceOptimized Asset Operations and MaintenanceEfficient Manufacturing OperationsOperational Risk ManagementEnergy and Environmental Resource Management

Manufacturing

Extended Procurement Spend Performance Management and Related ServicesSourcing and Contract Management

Procurement Sustainability

Business Network Transformation

Human Resources

Sales

Supply Chain

Product Development

Finance

Information Technology

Manufacturing

Procurement

* Key Opportunities for Sustainability


Driving Innovation with Our Partners

Certified partner solutions extend the SAP industry solution.

Enterprise inventory optimization

Price and margin management

REACH compliance

Intellectual property management

5-8%

Develop Plan Source Make Deliver Sell & Serve

Human Resources

Finance

Strategic IT

Supply Chain Management

Sales and Marketing

Product Development

Procurement

Manufacturing

Detailed scheduling

Advanced process control / historian

Manufacturing execution

EAM visualization/ reliability-centered maintenance and optimization

LIMS connect

Environmental compliance ITAR and Deemed Export Control applications


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ibu chemicals november 2011 · 1960 1970 1980 1990 2000 2010 2020 mainframe 1m+ units microcomputer...

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