international sap metals and mining summit, september 17 ... for miningmetals...international sap...

International SAP Metals and Mining Summit, September 17 & 18, 2015, Moscow

Eckhardt Siess, Global VP IBU Mill Products & Mining, SAP SE

SAP’s Innovations for the Mining and Metals Industries

Industry drivers

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 4 Customer

Trends shaping the mining and metals industry

Rapid growth of the

cloud – the reality of

hybrid cloud

landscapes

Big Data – to predict

and decide

Internet of Things and

Industrie 4.0 to connect

assets and logistics to

the business

Consolidated view of

finance and operations

in real time

Ad hoc and advanced

analytics

Mobile, simpler access

to information

Volatile markets, prices

for raw materials and

energy

Combination of

commodity products and

fast product innovation

Need to drive excellence

across all operations

Frequent order changes;

key role of on-time

delivery

Smarter, cost-aware

manufacturing

Multichannel business

and brand(s)

management

Environmental impact

Safety

Availability of talent

Technology

trends

Industry

trends

SAP Solutions


Risk radar for Mining and Metals - 2015 vs. 2008

2008 2015

Megatrends

The top 10 business risks are 1-2 year

priorities of the mining and metals sector

as influenced by the global megatrends

that are impacting business, society,

culture and the ecomomy.

These include:

• Digital Transformation

• Changes in the way we work

• The global marketplace

• The urban world and ist demands on

infrastructure

• A resourceful planet allocating scarce

resources

• Helath re-imagined to meet growing

needs

The megatrends by their nature are

medium to long term in relevance.

Source: EY: Business risks facing mining and metals 2014 – 2015

http://www.ey.com/Publication/vwLUAssets/EY-Business-risks-facing-mining-

and-metals-2014%E2%80%932015/$FILE/EY-Business-risks-facing-mining-

and-metals-2014%E2%80%932015.pdf

http://www.ey.com/Publication/vwLUAssets/EY-Business-risks-facing-mining-and-metals-2014%E2%80%932015/$FILE/EY-Business-risks-facing-mining-and-metals-2014%E2%80%932015.pdf































Risk radar for Mining and Metals - SAP Solution coverage

- Project System

- Portfolio & Project Management

- Commercial Project Management

Project and Portfolio Management - Predictive Maintenance

- Manufacturing Integration &

Intelligence on HANA

Asset Operations & Maintenance

Human Resources

- BW on HANA

- Geospatial & Predictive

- Analytics with Lumira

BI / Analytics

Finance

SAP S/4 HANA Finance with BW

and BPC

Mining Operation &

Downstream Processing

- Transportation Management

- Traders and Scheduler Workbench

Bulk & Non-Bulk Transportation

Commodity Management

Enterprise Threat Detection

Fraud Management

- SAP Best Practices for Mining

- Multiresource Scheduling

Ariba Business Network

- SuccessFactors

- Contingent Workforce Management

Innovation Platform “SAP” for

mining and metals industries


Market realities are forcing the need for business transformation

Business complexity

>2.8B Internet users

worldwide2

5B Middle-class

consumers with €56

trillion spend power1

90% Of the world’s data

generated in the last

two years3

US$221B The merger of Glencore

and Xstrata created the

world’s largest mining

company by revenue (2014)

AUD$11.3B BHP Billiton demerging a

group of assets to create an

independent global metals

and mining company,

South32

Accelerating Pace of Business

Sources: 1Morgan Stanley: Asian Influence, The Emerging 21st Century Middle Class, June 2011 2 Kleiner Perkins Caufield Byers, Internet Trends 2015, May 2015 3 “Big Data, For Better or Worse: 90% of the World’s Data Generated in the Last Two Years,” ScienceDaily, May 2013 4 Worldwide Internet of Things Spending by Vertical Market 2014–2018 Forecast, IDC, June 2014

Hyper-connectivity

€11.28B ArcelorMittal market cap,

world’s largest steel

manufacturer as a result of

multiple mergers

(as of Sept. 9, 15)

http://www.oecdobserver.org/news/fullstory.php/aid/3681/An_emerging_middle_class.html

http://www.kpcb.com/internet-trends

http://www.sciencedaily.com/releases/2013/05/130522085217.htm



http://en.wikipedia.org/wiki/Image:BHP_Billiton.svg

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAMQjRw&url=https://commons.wikimedia.org/wiki/File:Arcelormittal-logo.svg&ei=bTyTVeKgD4acygTkmKuoCw&bvm=bv.96952980,d.aWw&psig=AFQjCNH-NJ6DAvUj5L7fGHuRfhZiXBVosA&ust=1435799021321343


Transformation does not come from incremental improvement

but from doing things fundamentally differently

Worker Safety Wear-ables

• Track the biometrics, location and

work conditions of employees in

hazardous conditions in real-time

Mine of the future

• Largest fleet of autonomous, driverless

trucks that deliver loads more efficiently,

minimizing delays and fuel use

Streamlined expansion

• Easily onboard new remote mining

operations using cloud

• Proliferation of mobile transaction

and analytics users

“By 2018, one-third of the top twenty market share leaders in most industries will be significantly disrupted by new competitors

(and “reinvented” incumbents).”*

The common denominator: a digital value chain enabling flexible, agile, interconnected operations and new levels of

business insight

0% Fatigue- and hazardous

exposure related

incidents

Kilometers covered by

Rio Tinto’s autonomous

trucks since 2012

Training for Fiori applications in

purchasing and human resources 3.9M

*Source: IDC, March 2015

Reduce

Sustainable development

• In-depth integration of IT and

industrial operations globally

• Breadth of KPIs for early

detection of quality issues

Reduction in inventory with

a 50% rise in production 80%

http://en.wikipedia.org/wiki/Image:Rio_Tinto.svg

http://www.codelco.com/english/index1.asp


The digital value network interconnects all aspects of the value

chain in real time to drive business outcomes in mining and metals

Smarter and engaged

workforce across

all employees

A networked travel

management (concur)

Workforce engagement

Assets &

Internet of

Things

Supplier collaboration and

business networks

Supplier collaboration to

accelerate growth and

drive efficiency

Operator & Manufacturer

collaboration in Asset

Intelligence Networks

Contingent Workforce to

respond to peak demand

Harness Assets and

Internet of Things to drive

real-time insights and new

business model Smarter mining and real time

insights into operations

Social marketing & selling

B2C experience for B2B

Offering new products and

services that cross value

chains

Re-platform core business

processes, and bring

together business process

and analytics in real time to be

smarter, faster, and simpler

Mine production /

Metals Customer experience

omni-channel

SAP HANA PLATFORM


SAP S/4HANA, a real-time platform, at the core of the digital

enterprise

People

Big Data

Internet of Things

Business

networks

Social networks

Application SAP Fiori SAP HANA

Customers and

Partners

Devices

SAP S/4HANA


Introducing the next generation core and lines of business

solutions for the digital economy

SAP S/4HANA

MARKETING

SAP S/4HANA

HUMAN RESOURCES SAP S/4HANA

MANUFACTURING SAP S/4HANA

SUPPLY CHAIN

SAP S/4HANA

SALES SAP S/4HANA

FINANCE

SAP S/4HANA

SERVICE

SAP S/4HANA

SOURCING &

PROCUREMENT

SAP S/4HANA

ASSET

MANAGEMENT

SAP S/4HANA

RESEARCH &

DEVELOPMENT

The D

igita

l Core

The D

igital C

ore

Enterprise Management

SAP HANA Cloud Platform HCP HANA Cloud Integration

HCP Technical Services HCP Database Services HCP Business Services


Why embrace digital transformation?

Reimagining the business

The digital value network will help you enable business transformation by:

Simplifying

technology

Transforming

business processes

Empowering the

business

Mine production

Workforce engagement

Assets &

Internet of Things

Supplier collaboration

business networks

SAP HANA PLATFORM


Transform business processes Reimagine business processes for fundamentally higher performance in mining

HR

Manage, develop, reward, and

retain a global workforce:

• Analyze and use creative best

practices to counter competition

and aging population

• Universally increase time spent

on strategic projects

Digital Core

Mine production Assets &

Internet of Things

Optimized Mine Operations Commodity Supply Chain

Management

Operational Risk and Compliance

Management

Detect inefficiencies, perform proactive

maintenance on mine assets to maximize

uptime

• Predict machine failures

• Use real-time analytics to drill down into the

root-cause of production shortfalls from

mine-level operations

Optimize mine production and sales plans

based on current financial data:

• Align sales aspirations with production

realities by combining real-time market and

operations data in rolling forecasts

• Avoid delivery glitches for bulk and non-bulk

shipments by having real-time visibility into

status and costs

Create safe and economic operations across the

mining value chain:

• Collect sensor data from wear-ables to improve

operational yields with less health and safety

risks

• Avoid challenges to social license-to-operate by

tracking public discussions throughout

exploration, mine operations to re-naturalization

Finance

Allow for visibility into the state of

the business at any time:

• Enable real-time financial close

for faster, more accurate, and

more collaborative decision

making and execution

enterprise-wide

Procurement

Eliminate supply disruption risk

while protecting margins:

• Collaborate instantly with global

suppliers via the Ariba Network

• Monitor real-time commodity

price-and-supply volatility


business networks Total workforce

management


Order (spare) parts

7

Operational Excellence from Pit to Customer

Digital Business Scenario: Predictive Maintenance

Create work order

Predict probable failure

Determine root cause of failure

Evaluate proactive measures

Determine Asset Health

Decide on best measure

Collect, analyze sensor/meter

data

TIME

Maintain Asset

Collaborative Resource

Scheduling and Task assignment

Suppliers Collaboration

Business Networks

Assets & Internet

of Things

Digital Core

Workforce Engagement 3% - 5% Reduction in maintenance and service costs

7% - 10% Reduction in unplanned asset downtime

Value estimates

3% - 5% Improvement in asset productivity

Source: SAP Performance Benchmarking and Customer Business Case

1

2

3

4

5

6

8

9

9

10


Transform business processes Reimagine business processes for fundamentally higher performance in metals

HR

Manage, develop, reward, and

retain a global workforce:

• Analyze and use creative best

practices to counter competition

and aging population

• Universally increase time spent

on strategic projects

Digital Core

Total workforce

management

Customer experience

omni-channel


business networks

Assets &

Internet of Things

Profit-Driven Supply Chain Plant and Asset Operations Excellence Sustainable Customer Relationships

Avoid supply chain disruptions/costs by tracking

material movements in real-time

• Anticipate change to manage risks and leverage

opportunities

• Use real-time plant floor data to improve delivery

decisions

• Deliver the target quality and appropriate service

level to different customer segments

Optimize mill and plant production capacity, quality

and profitability:

• Use sensor data to predict machine failures or

product quality

• Consider skills, toolsets and resources in

scheduling maintenance activities

• Standardize calculation and visualization of

metrics like OEE or Energy Usage across plants

Deliver a uniform digital experience through every

channel :

• Arm your sales reps with key insights while at the

customer

• Integrate social intelligence into the selling and

marketing processes

• Streamline the complaint process and provide

seamless support across channels

Finance

Allow for visibility into the state of

the business at any time:

• Enable real-time financial close

for faster, more accurate, and

more collaborative decision

making and execution

enterprise-wide

Procurement

Eliminate supply disruption risk

while protecting margins:

• Collaborate instantly with global

suppliers via the Ariba Network

• Monitor real-time commodity

price-and-supply volatility


Predict

future quality

issues

Differentiate on customer experience through predictive capabilities

and connected manufacturing

Customer experience

omni-channel

Assets & Internet of

Things

Digital core

Time

5-10% Improved customer

satisfaction

7-10% Reduced scrap value

Value estimates

10%-15% Reduced revenue loss due to

compliance and recall issues

Source: SAP and customer benchmarks

Digital Business Scenario: Predictive Quality & Complaints

Global item

traceability

Optimize

warranty

accruals

Root cause

analysis of

quality issues

Social media

triggers

service ticket

1

3

4

5

Predict

future

complaints &

claims

7

Constantly

benchmark

for “golden

“run”

9

12

Proactive

customer

service &

callback

8

Sense future

quality issues

at customer

11 2

Analyze

similar

customer

complaints

Find & block

affected

inventory

6

Adjust process

parameters for

tighter process

control

5

Balance

maintenance

against

compliance

cost

10

2


Empower the business Reimagine planning and decision-making processes to align around common goals

Analyze profitability using real-time revenue and costs to

improve company’s overall financial health

Evaluate impact of decisions on operations and strategy by

using forecasting and simulation to better predict outcomes

Collaborate with customers according to their unique

business models and improve revenue and margin

Align sales aspirations with operational realities while

ensuring highest return on capital invested

1 2

3 4


Simplify technology SAP S/4HANA simplifies technology for metals and mining companies

Reduce total cost of ownership Increase user productivity Accelerate execution

Simplified data model Simplified system landscape Simplified user experience

Classic SAP Business Suite

11 Inventory aggregate tables

2 Document aggregate tables

11 History aggregate tables

2 Material master tables

Role-based engagement across

the business

Instant access to any business

insight

Simple design across business

processes

SAP GUI SAP Fiori UX Delta

Duration

(seconds)

132 47 - 64%

Clicks 39 11 - 71%

Screen changes 8 2 - 75%

Fields filled 5 2 - 60%

Example: SAP S/4 HANA Finance -

receivables management

Reduced number of systems and

business warehouses

Flexible access to data and data

compression

Fewer interfaces between systems

Elimination of aggregate tables

Example: SAP S/4 HANA Supply

Chain* – inventory management

SAP S/4HANA

1 Document table

2 Material master tables

Elimination of process steps

Integration of analytics in

transactions

Example: SAP S/4 HANA Finance -

reporting and analytics

Saved 20% IT costs annually

33% lower costs to maintain

business warehouse

https://www.youtube.com/watch?v=v6tOQlBTAY4&list=PL3ZRUb1AKkpROQmXjeM6-S_9AmMizxU-7&index=1










Internet of Things and Industrie 4.0 SAP Connected Manufacturing runs Industrial IoT with Industrie 4.0 scenarios

Internet of Things

Internal INDUSTRIAL scenario External scenario

SCADA / HMI

Machine Layer

MES

ERP

1

Industrie 4.0

» All industries

» All things and devices

» Manufacturing industries

» OT- IT Convergence

» Systems, things and

devices in the Shop floor

Industrie 4.0 focuses on all manufacturing industries and leverages

value inside the four industrial walls and the production networks of the

enterprise. Key topics are lot size of one, flexibility, traceability,

production documentation and execution leveraging seamless integrated

business processes connecting the top floor with shop floor.

The external Internet of Things scenarios enable all

smart devices and things to be connected wherever they

are. Once connected the information can be transformed

and new business scenarios can be realized.

SMART THINGS

SMART DEVICES

SMART industrial THINGS

SMART industrial DEVICES


Connected Manufacturing 5 Scenarios of “Connectedness”

1

ERP

MES

SCADA

Machine Layer

Manufacturing

Company

5 Scenarios:

2

2. Machine to Machine

Autonomous machines

1

1. Shop floor to Top floor

Intra company vertical integration

E-Commerce

Consumer

3

3. eCommerce Integration

Direct integration of online

configurators

3

Service Provider

Machine Cloud

5. Machine Cloud

- Predictive maintenance

- Predictive quality

5

5

Quality Operator

5

Supplier

4. Manufacturing Collaboration

- Visibility

- Genealogy

- Quality

- Kanban / Direct replenishment

Mfg Collaboration 4

4

Demo Connected Mining

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 25 Internal

http://scn.sap.com/community/mining-and-mill-products

http://www.linkedin.com/groups/SAP-Mill-Products-Mining-Group-4532949

http://www.facebook.com/SAPMillProductsandMining

http://twitter.com/SAPMillMining @SAPMillMining Thank You!

Contact information:

Eckhardt Siess

Global VP IBU Mill Products & Mining

SAP SE, Walldorf, Germany

[email protected]

+49 6227 749087








http://buttonshut.com/LinkedIn-Buttons/












http://buttonshut.com/Facebook-Buttons/

http://www.facebook.com/SAPMillProductsandMining

http://buttonshut.com/Twitter-Buttons/

http://twitter.com/SAPMillMining

international sap metals and mining summit, september 17 ... for miningmetals...international sap...

Documents