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TRANSCRIPT
Innovation around trends in building materials industry,
what’s’ next?
Victor Cruz Landgrave
June 16th , 2015 @SAPMillMining
© 2015 SAP AG. All rights reserved. 2
Agenda
@SAPMillMining
SAP in the Industry
Industry Trends
SAP solutions and customer successes
Visit us
© 2015 SAP AG. All rights reserved. 3
Key messages
@SAPMillMining
Innovation as value
added
Innovation as part
of the business
SAP in the Industry
@SAPMillMining
© 2015 SAP AG. All rights reserved. 5
Industry Ownership of IBU Mill Products & Mining
Flat Steel
Long Steel
Aluminum
Primary Metals
Metal Service Centers
Cable
…
Fabricated Metals, Cable
Brown Paper
Fine Paper
Hygiene
Pulp & Paper
Yarn & Fibres
Fabric
Carpet & Rugs
Textiles
Mining
Copper
Aluminum
Mining, Non Ferrous Met.
Paper Packaging
Plastic Packaging
Aluminum Packaging
Glass Packaging
Packaging
Solid Wood
Plywood
Particle Board
Forest Products
Flooring
Roofing
Furniture
Building Products
Bathroom
Windows
Ceramics
Cement
Ready Mix Concrete
Concrete Products
Aggregates
Cement & Concrete
6 © 2015 SAP SE or an SAP affiliate company. All rights reserved.
14 of the 20 largest cement
companies in the world run SAP
solutions. Source: Global Cement, Top 20 global cement companies
7 © 2015 SAP SE or an SAP affiliate company. All rights reserved.
More than 2,200 building materials
companies in 91 countries are
innovating with SAP solutions.
Industry Trends
@SAPMillMining
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 9 Customer
General Trends – Kondratieff Long Waves
Sources: Forrester Research, Gartner, IDC, DB Research; World Future Society, 2013 1 Forrester Research, The ICT Market Outlook For 2011 And 2012, 06/2011; 2 The World Bank,
Growth rate of mobile cellular subscriptions (per 100 people), 2011; 3 Based on the numbers of IPOs by Prof. Ritter, University Florida; McKinsey Report No.20, Summer 2010. MIT
Technology Review Special Issue: 10 Emerging Technologies, Vol. 114/no.3.; The Economist, „Catch the wave“, 02/1999; Kondratieff, N.D., "Die langen Wellen der Konjunktur", Archiv f.
Sozialwissenschaften u. Sozialpolitik, Bd. 56 (1946 [1926]), 573-609; Gartner, Technological Revolutions: The Application of Kondratiev Waves to IT, 01/2007; Carlotta Perez,
Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages, Edward Elgar Publishing, 2003
The year 2010, the expansion of the Internet into mobile and social media, mark the beginning of a new wave, where information, knowledge, humans,
machines, robots and products are increasingly entangled. The next step into a new wave will probably be space travel.
Matu
rati
on
Space
Travel
1990 2000 2010 2020 2030 2040 1970 1980
GUI/RFID (1980)
CPU/MS-Dos/
Compuserve (1979)
SaaS, On
Demand
(2009)
Smart robots
Artificial Intelligence
Second Life
(2003)
Mass Customization
Cloud, Web 2.0
(2010)
Quantum Computing
(2004)
Nano Technology/
Micromachines
Moon base
Humans on Mars
(2006)
Virtual Reality
Bio Computing
Designed Materials
Artificial Organs
Distributed Power
Biometrics
Organic Farming
Geo engineering
Usenet/ Newsgroup (1980)
SAP HANA
(2012)
BASIC/PCs
(1975)
MS Windows (1983)
WWW
(1991)
Arpanet
(1969)
SAP, Apple,
MSFT (1971+)
AOL/PCR (1985)
Nuclear Fusion 1G Mobile
Network (1979)
2G GSM
(1990)
3G WCDMA
(2001)
4G WiMAX
(2012)
Creeper Virus
(1971)
iPhone
(2007)
ISPs,
Amazon,
eBay,
Yahoo
(1995)
SOA
(2000)
2050
Wave V
Age of Electronics, IT and
Telecommunications
4th Industrial Revolution
Cyberphysical Systems &
Networks
3rd Industrial Revolution
Automation, Electronics, IT
Wave VI
Age of Entanglement and Machine Autonomy
Mainframe
Networked
Computing
Smart
Computing
Personal
Computer
IT as Cellular
Machinery
Non-biological
beings
Self-Organizing
Economy
Internatio-
nalized
Economy
Global,
Networked
Economy
Economy of
Business
Networks
Mobile
Wave
1. (1600–1780) The wave of the Financial-agricultural revolution
2. (1780–1880) The wave of the Industrial revolution
3. (1880–1940) The wave of the Technical revolution
4. (1940–1985) The wave of the Scientific-technical revolution
5. (1985–2015) The wave of the Information and telecommunications
revolution
6. (2015–2035?) The hypothetical wave of the post-informational
technological revolution
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 10 Customer
Cloud Internet of Things Big Data Mobile
Global key drivers that are changing the way we are living and the
way we conduct and create new businesses.
3D printing, robots & smart materiales
New HR environment
Leadership & Business visibility
Collaboration & Innovation
3D / R HR L & V C & I
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 11 Customer
Industry Trends – Consumer The brand rules, the industry is up for the total shopping world, the web, mobile and social media get
more influence.
Sources: IDC, Worldwide Retail Industry Top 10 Predictions, 2012, PSFK, Retail Trends, 2012;; Forrester Research, European Online Retail: Five Trends To Watch In 2013, 2013;
Forrester Research, Trends 2013: US Retail eBusiness, 2013; Responsys, 2013; MDG, 2013; Multichannel merchant, 2013; The Copenhagen Institute for Future Studies, 2013;
MORM/Retailomania, 2013
Retailers will focus on the consumer, turning the world into a retail experience – buy anything,
anytime, anywhere. “Total shopping experience”, every shop is a flagship. Decors will change much
faster. Showrooming is a significant problem
The online world spills into the physical one and retailers will improve their in-store technology such
as tablets, interactive panels, digital signage, e-signs, tracking technology, self scanning and others.
Online and smart devices will be an important part of the shopping experience with ratings getting
even more important including store cameras and videos to share what we buy. Augmented reality
and preview shopping will change the way we shop
Retailers will experiment to get the store to the customer, such as trucks, ships, private parties and
with complementary curation - bring in other shops to get to a one-stop experience.
Social e-commerce, creating interest among buyers so that they spread the word to their contacts on
social networks and other places, will be further applied.
The number of products and variants will grow and as regional responses will vary considerably,
inventory and demand-driven performance with optimized workflows and enhanced logistics is key.
Sustainability and following ingredients and components through the supply-chain will become an
integrated part of it
RFID will be used to achieving supply chain efficiency improvements and reductions of excess
inventory and enhancing the consumer experience. Trials and implementations will focus on reducing
the occurrence of out-of-stock situations.
Glocal vs local vs glocal: Retailers and CP companies alike will have to analyze and serve local and
special needs. Analytics will be used for on-shelf availability, inventory tracking and demand
forecasting. The social Web, mobility and context-aware applications and services will be used to
sense market patterns. Precision retailing will be applied to use the brand to target specific
consumers.
More CP companies will enter retail to push their brand partly with store-in-store concepts or with
their own stores
Retailers will go on experimenting with co-creation of products
Pre-Tail Retail Post-Tail
Researching
Word of mouth
Social media
Apps
Source:MORM/Retailomania
In-Store experience
Mobile devices
Sharing experiences
Word of mouth
Social media
© 2015 SAP AG. All rights reserved. 12
Key Trends Are Driving Change in Building Materials Industry
Narrow Margins
Intensified Innovation
Global Operations
Demanding Customers
Increased Risk & Regulation
Volatile, rising
prices energy
(coal, gas, etc)
Asset intensive
industry
Make-to-order
vs. make-to-
stock
Rising
transportation
costs
‘Green’ Products
required
Smart homes
High quality
standards
Bundling of
products and
services
Many mergers
and acquisitions
Increasing global
activities
Lack of visibility
into supply chain
Disparate IT
landscape
In-time delivery
is key
Frequent order
changes on
short notice
Dealing with
commodity
products
Multi-channel
business
Financial
regulations
increase
Global trade
increases
Environmental
regulations
increase
Regional markets for commoditized products with high margin pressure with various trends
The US cement
market is forecast to
grow 8.2% in 2015 *
* ARI Dec 2014
** ARI Nov 2014
*** ARI April 2014
**** Annual report ‘13 Saint Gobain
Manufacturing
companies to set up
power generation
division**
Chinese company
prints 10 houses in
24 hours***
More than 23% of our sales
are generated through
products which were
developed less than five
years ago.****
© 2015 SAP AG. All rights reserved. 13
New Business Models occurring
(Regenerative)
Power generation
Production
Distribution Center
Processing
Engineering & Construction
Wholesale /
retail channel
Raw Materials
Traditional business areas
New and different business areas
SAP solutions and customer successes
@SAPMillMining
© 2015 SAP AG. All rights reserved. 15
Cloud Internet of Things Big Data Mobile
Technology trends as enabler in the industry
Oldcastle turns to
SuccessFactors cloud solution
to bring together their
decentralized business units,
and SuccessFactors
Performance & Goals,
Succession, JAM, Recruiting
and Workforce Analytics to
align their workforce and
optimize performance.
Nearly a quarter of the
company’s 10,000 workers are
active users of BI, and plans
call for increasing that number
to around 4,000 in the coming
year. These changes are
unfolding even as its predictive
capabilities have driven
substantive change in the way
the company operates.
“Automated scheduling,
combined with our telemetry
technology,
will make us more proactive in
dealing with potential service
issues.” Robert Tennant, CIO, Barloworld
Handling, UK
“In 10 weeks we were up and
running with the new mobile
app. Customers are extremely
happy. Thanks in part to
mobile solutions from SAP, we
were the best at meeting
electronic tracking and quality
control.” Eric Halbur , Application
Development Manager , Woodgrain
Millwork Inc.
© 2015 SAP AG. All rights reserved. 16
Value Map 2015 for Building Products SAP solutions drive your innovative business
Sales and Channel Management
Marketing and Brand Management
Sales Enablement and Performance
Order and Contract Management
Including Product Configuration
Trade and Promotion Management
Omnichannel Management
Customer Service and Complaint
Management
Sustainable Product Innovation
Project and Portfolio Management
Design Orchestration
Design Network
Responsive Manufacturing
Design to Order and Project
Manufacturing
Make-to-Order Manufacturing
Production Execution and Visibility
Including Make to Stock
Quality Management and Compliance
Supply Chain Planning and Order
Fulfillment
Sales, Inventory, and Operations
Planning
Response and Supply Orchestration
Efficient Logistics and Order
Fulfillment
Real-Time Network Insights Asset Operations and Maintenance
Embedded Technology
Demand Planning and Sensing
Solution Explorer
Finance Financial Planning
and Analysis
Accounting and
Financial Close
Treasury and Financial
Risk Management
Collaborative Finance
Operations
Enterprise Risk
and Compliance
Management
Core Human
Resources and Payroll Talent Management
Time and Attendance
Management
Workforce Planning
and Analytics
Procurement Strategic Sourcing and
Supplier Management Direct Procurement
Self-Service
Procurement Services Procurement Travel Management
Information
Technology
and Platform
Enterprise Technology Analytics
Technology
Mobile
Technology
In-Memory
Technology
Human
Resources
Demand Signal
Management
© 2015 SAP AG. All rights reserved. 17
Value Map 2015 for Building Products SAP solutions drive your innovative business
Sales and Channel Management
Marketing and Brand Management
Sales Enablement and Performance
Order and Contract Management
Including Product Configuration
Trade and Promotion Management
Omnichannel Management
Customer Service and Complaint
Management
Sustainable Product Innovation
Project and Portfolio Management
Design Orchestration
Design Network
Responsive Manufacturing
Design to Order and Project
Manufacturing
Make-to-Order Manufacturing
Production Execution and Visibility
Including Make to Stock
Quality Management and Compliance
Supply Chain Planning and Order
Fulfillment
Sales, Inventory, and Operations
Planning
Response and Supply Orchestration
Efficient Logistics and Order
Fulfillment
Real-Time Network Insights Asset Operations and Maintenance
Embedded Technology
Demand Planning and Sensing
Solution Explorer
Finance Financial Planning
and Analysis
Accounting and
Financial Close
Treasury and Financial
Risk Management
Collaborative Finance
Operations
Enterprise Risk
and Compliance
Management
Core Human
Resources and Payroll Talent Management
Time and Attendance
Management
Workforce Planning
and Analytics
Procurement Strategic Sourcing and
Supplier Management Direct Procurement
Self-Service
Procurement Services Procurement Travel Management
Information
Technology
and Platform
Enterprise Technology Analytics
Technology
Mobile
Technology
In-Memory
Technology
Human
Resources
Demand Signal
Management
© 2015 SAP AG. All rights reserved. 18
The right tile and the right IT making homes beautiful RAK Ceramics finds the perfect fit with SAP® ERP and SAP CRM
© 2015 SAP AG. All rights reserved. 21
Value Map 2015 for Building Products SAP solutions drive your innovative business
Sales and Channel Management
Marketing and Brand Management
Sales Enablement and Performance
Order and Contract Management
Including Product Configuration
Trade and Promotion Management
Omnichannel Management
Customer Service and Complaint
Management
Sustainable Product Innovation
Project and Portfolio Management
Design Orchestration
Design Network
Responsive Manufacturing
Design to Order and Project
Manufacturing
Make-to-Order Manufacturing
Production Execution and Visibility
Including Make to Stock
Quality Management and Compliance
Supply Chain Planning and Order
Fulfillment
Sales, Inventory, and Operations
Planning
Response and Supply Orchestration
Efficient Logistics and Order
Fulfillment
Real-Time Network Insights Asset Operations and Maintenance
Embedded Technology
Demand Planning and Sensing
Solution Explorer
Finance Financial Planning
and Analysis
Accounting and
Financial Close
Treasury and Financial
Risk Management
Collaborative Finance
Operations
Enterprise Risk
and Compliance
Management
Core Human
Resources and Payroll Talent Management
Time and Attendance
Management
Workforce Planning
and Analytics
Procurement Strategic Sourcing and
Supplier Management Direct Procurement
Self-Service
Procurement Services Procurement Travel Management
Information
Technology
and Platform
Enterprise Technology Analytics
Technology
Mobile
Technology
In-Memory
Technology
Human
Resources
Demand Signal
Management
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 22 Customer
NIBCO: Controlling Costs While Providing
Service with SAP® Transportation Management
Company
NIBCO Inc.
Headquarters
Elkhart, Indiana
Industry
Mill products – fabricated metal products
Products and Services
Valves, fittings, and flow-control products
Employees
2,400
Web Site
www.nibco.com
Partner
Novigo
www.novigo.com
Top objectives
Control costs, grow the business, and meet higher demand
Streamline transport planning by eliminating offline activities
Improve internal customer satisfaction by centrally storing freight rates to support carrier selection
Resolution
Used a preconfigured template from Novigo to quickly deploy the SAP® Transportation
Management application on time and within budget
Implemented in 19 weeks, from project kickoff to the first pilot launch
Launched at two more pilot sites just nine weeks later
Went live at three additional sites over the following three months
Successfully integrated PC*Miler from ALK Technologies and RateWare XL SMC3 to provide
solutions for geocoding and CzarLite less-than-truckload base rates
Key benefits
Efficient carrier selection and multistop shipment enablement
High user acceptance and satisfaction
Faster planning, lower costs, and more products shipped
“SAP Transportation Management has helped streamline our planning process
to better control costs and meet our customer service expectations. Our
implementation partner Novigo’s ready-to-use implementation template
significantly reduced launch time, enabling us to realize benefits at our
shipping sites quickly.”
Stephen Miller , Transportation Management Implementation Project Manager , NIBCO Inc.
87.5% Faster shipment planning (from 2 hours to
15 minutes)
1.7% Increase in volume of products shipped
compared with the previous year, with no
additional planning resources
3% Reduction in hundredweight costs
32192 (14/12) This content is approved by the customer and may not be altered under any circumstances.
© 2015 SAP AG. All rights reserved. 23
Value Map 2015 for Building Products SAP solutions drive your innovative business
Sales and Channel Management
Marketing and Brand Management
Sales Enablement and Performance
Order and Contract Management
Including Product Configuration
Trade and Promotion Management
Omnichannel Management
Customer Service and Complaint
Management
Sustainable Product Innovation
Project and Portfolio Management
Design Orchestration
Design Network
Responsive Manufacturing
Design to Order and Project
Manufacturing
Make-to-Order Manufacturing
Production Execution and Visibility
Including Make to Stock
Quality Management and Compliance
Supply Chain Planning and Order
Fulfillment
Sales, Inventory, and Operations
Planning
Response and Supply Orchestration
Efficient Logistics and Order
Fulfillment
Real-Time Network Insights Asset Operations and Maintenance
Embedded Technology
Demand Planning and Sensing
Solution Explorer
Finance Financial Planning
and Analysis
Accounting and
Financial Close
Treasury and Financial
Risk Management
Collaborative Finance
Operations
Enterprise Risk
and Compliance
Management
Core Human
Resources and Payroll Talent Management
Time and Attendance
Management
Workforce Planning
and Analytics
Procurement Strategic Sourcing and
Supplier Management Direct Procurement
Self-Service
Procurement Services Procurement Travel Management
Information
Technology
and Platform
Enterprise Technology Analytics
Technology
Mobile
Technology
In-Memory
Technology
Human
Resources
Demand Signal
Management
© 2015 SAP AG. All rights reserved. 26
Value Map 2015 for Building Products SAP solutions drive your innovative business
Sales and Channel Management
Marketing and Brand Management
Sales Enablement and Performance
Order and Contract Management
Including Product Configuration
Trade and Promotion Management
Omnichannel Management
Customer Service and Complaint
Management
Sustainable Product Innovation
Project and Portfolio Management
Design Orchestration
Design Network
Responsive Manufacturing
Design to Order and Project
Manufacturing
Make-to-Order Manufacturing
Production Execution and Visibility
Including Make to Stock
Quality Management and Compliance
Supply Chain Planning and Order
Fulfillment
Sales, Inventory, and Operations
Planning
Response and Supply Orchestration
Efficient Logistics and Order
Fulfillment
Real-Time Network Insights Asset Operations and Maintenance
Embedded Technology
Demand Planning and Sensing
Solution Explorer
Finance Financial Planning
and Analysis
Accounting and
Financial Close
Treasury and Financial
Risk Management
Collaborative Finance
Operations
Enterprise Risk
and Compliance
Management
Core Human
Resources and Payroll Talent Management
Time and Attendance
Management
Workforce Planning
and Analytics
Procurement Strategic Sourcing and
Supplier Management Direct Procurement
Self-Service
Procurement Services Procurement Travel Management
Information
Technology
and Platform
Enterprise Technology Analytics
Technology
Mobile
Technology
In-Memory
Technology
Human
Resources
Demand Signal
Management
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 27 Customer
Building Future-Proof IT Using SAP HANA®
Tailored Data Center Integration
Company
Geberit AG
Headquarters
Jona, Switzerland
Industry
Mill products – building materials
Products and Services
Sanitary and piping systems, including
installation systems, cisterns, flushing and
faucet systems, waste fittings and traps,
building drainage systems, and supply
systems
Employees
6,200
Revenue
SFR 2.3 billion (€1.9 billion) (2013)
Web Site
www.geberit.com
Objectives
Engage a single vendor for database and IT applications
Maximize on the current IT infrastructure and investments with the SAP HANA® platform
Technical implementation
Migrated all productive SAP® software systems from an Oracle database to SAP HANA
Used SAP HANA tailored data center integration to set up the SAP HANA software landscape
Enabled a high-availability environment using the native system replication function of SAP HANA
Used an HP BL680c G7 server blade with 512 GB of RAM combined with four 2.4 GHz Intel Xeon E7
processors and an SUSE Linux Enterprise Server (SLES) operating system
Provided 320 disks for 600 GB of shared storage using an HP 3PAR StoreServ 7400 system
Benefits
Simplified user experience and installation
Central storage instead of distributed systems
Reuse of existing IT infrastructure, including straightforward integration
Highly streamlined system administration and maintenance, including unchanged processes that can be
handled using existing knowledge
Greater flexibility and cost savings in hardware procurement compared to appliance delivery
72% less database volume (from 180 GB with the Oracle database to 50 GB with SAP HANA)
"Using SAP HANA tailored data center integration, we can reuse our existing IT
infrastructure without any problems. The integration ran smoothly and the installation
and administration were greatly simplified.“
Daniel Rothmund , Senior IT Application Analyst for SAP Software , Geberit Verwaltungs-GmbH
Simpler User experience
Central Storage
Streamlined System administration
Greater Flexibility
Reduced Database volume
31457 (14/07) This content is approved by the customer and may not be altered under any circumstances.
Visit us
@SAPMillMining
SAP Forum for Building Materials June 23-24, Chicago USA
The very unique opportunity
for the industry!
A dedicated SAP Forum for the building
materials industry including cement &
concrete, bricks & tiles, pottery &
ceramics, flat glass, insulation,
gypsum & plasterboards and sanitary
ware.
Keynotes and sessions from industry
players and SAP executives and experts.
Dedicated industry sessions and
opportunities for networking among
industry peers and SAP experts in the
building materials industry.
Ideally suited for CIOs, directors and
executives from across your business
including IT, operations, supply chain,
manufacturing and sales
~40 attendees
5 customer &
partner
presentations
8 CIOs
Event
rating
© 2015 SAP AG. All rights reserved. 30
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products
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4532949
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g
http://twitter.com/SAPMillMining @SAPMillMining
Thank You!
SAP
Industry Director
Mills
Victor Cruz Landgrave
SAP NOLA
T +52 55 3618-7304
M +52 155 5435-6852