the innovation-driven enterprise

Industry Executive Overview

Automotive

The Innovation-Driven Enterprise

Executive

Summary

SAP Solutions SAP Innovations References Contact Us

© 2013 SAP AG

© 2013 SAP AG 2 / 42

New Trends Driving Automotive Industry

The automotive industry faces new challenges and opportunities for growth:

geopolitical and demographic changes, sustainability, enterprise mobility,

responsive supply networks, shortened development cycles, and more savvy

customers.

Traditionally long lead times from product conception to production need to be reimagined as

automotive companies seek new ways to adapt and take advantage of changing market trends.

The strategic priority is to innovate faster, increase efficiency across business operations, and

manufacture the vehicles that customers want.

To better satisfy customers’ changing needs and tastes, automotive companies need to transform

into agile businesses that bring desirable new products to market quickly and profitably while

delivering customer value.

SAP offers solutions, best practices, and technology to orchestrate your key business processes

so you can focus on becoming a profitable, best-run company.

“Big Data”, cloud computing, mobile solutions, and analytics applications support the market-driven

transformation required to prosper, integrating and accelerating business throughout the

automotive value chain.

Find out how leading automotive companies take advantage of SAP technology and solutions to

become consumer driven and power their growth.

Executive

Summary


The Innovation-Driven

Enterprise

Market Situation

Transformation Through

Technology Innovation

Business Priorities

SAP Innovations

© 2013 SAP AG 3 / 42

To successfully grow market share automotive companies must:

Accelerate innovation

Enable collaboration and real-time insight

Manufacture efficiently, profitably, and sustainably and avoid disruption

Deliver a customer-centric buying and ownership experience

Transforming Automotive

The ability to increase capacity, enhance quality, cut costs, streamline the supply

chain, and accelerate the launch of desirable vehicles is key to growing market

share.

Best-Run Automotive

Executive

Summary



Enterprise

Market Situation



Business Priorities

SAP Innovations

http://www.youtube.com/watch?feature=endscreen&v=hKOEa0Hgd8U&NR=1

© 2013 SAP AG 4 / 42

Best-run automotive companies meet or exceed their target metrics by focusing on

the entire internal and external business lifecycle. This includes tracking all key

performance indicators across engineering, manufacturing, sales, and service

activities.

Best-Run Automotive Priorities

Understanding the value drivers for these priorities is key to becoming a best-run

automotive company.

Collaborative Product Innovation

Manufacturing and Logistics

Responsive Supply Networks

Marketing Sales and Aftermarket

People and Talent

Finance

Procurement

IT Management

Executive

Summary



Enterprise

Market Situation



Business Priorities

SAP Innovations

© 2013 SAP AG 5 / 42

Executive

Summary



Enterprise

Market Situation



Business Priorities

SAP Innovations

For over 40 years, SAP’s innovations have helped companies transform and achieve the goals

they never thought possible – making more-informed decisions and innovating to lead in new

markets. SAP enables the real-time enterprise, empowers new experiences, and unwires the

business.

Enable the Real-Time Enterprise

SAP’s integrated, real-time analytical, predictive, and in-memory database solutions improve the

business value of your information and optimize business outcomes.

Empower New Experiences

The SAP software solutions allow you to deliver simple, elegant, real-time applications rapidly

across any device, with the superior consumer-grade experience users have come to expect.

Unwire the Business

Connect with your customers, partners, and employees efficiently and securely with a market-

leading mobile platform and device management technologies from SAP.

Business Transformation Through Technology

Innovation

Revenue growth and profit are no longer sufficient benchmarks for success. In

today’s economy, companies need to stand out in crowded and highly competitive

markets. The pace of business is relentless, where today’s innovation becomes

tomorrow’s status quo. Organizations that embrace technology can transform to

gain a significant advantage rapidly over the competition.

© 2013 SAP AG 6 / 42

SAP Innovations

Automotive companies need to leverage technology in order to accelerate the pace

of innovation. Big Data, analytics, enterprise mobility, and cloud computing are all

key to the cost-effective delivery of sales and service excellence.

SAP is investing heavily in the future of five distinct technology areas: applications, Big Data,

analytics, mobility, and cloud computing. Integrated throughout the enterprise, these technologies

can help transform automotive companies. When you can innovate faster, increase quality,

manufacture efficiently, and deliver excellent sales and service, you can increase profitability and

gain competitive advantage.

Accelerating the pace of innovation requires insight and improved collaboration. SAP solutions for

mobility and cloud computing extend your work platform and provide a flexible, secure working

environment for global teams.

Becoming more agile and efficient while avoiding disruptions across the extended value chain

depends on close scrutiny of your key performance metrics. Running real-time analytics with the

SAP HANA platform helps make the best use of all data, no matter the source. And the ability to

exploit Big Data can be critical to successful customer interactions.

Executive

Summary



Enterprise

Market Situation



Business Priorities

SAP Innovations

© 2013 SAP AG 7 / 42

SAP solutions can drive automotive industry transformation.

Automotive Value Map

Product Innovation

SAP Solutions


Marketing, Sales and

Aftermarket


People and Talent

Procurement

Finance

Technology Solutions

IT Management

Technology

Solutions


Aftermarket

Dealer Business Management

Vehicle Sales Management

Customer Service, Support, and

Warranty Management

Application Develop-

ment and Integration

SAP HANA Platform

Collaborative Product

Innovation

Continuous Product and

Service Innovation

Integrated Product Development

for Discrete Industries

Embedded Product

Compliance

Manufacturing and

Logistics

Operational Procurement and

Inbound Logistics for Direct Material

Lean Manufacturing

Make to Order

Outbound Logistics

Responsive Supply

Networks

Service Parts Management

Transportation Management

Supply Chain Execution

People and

Talent Core Human Resources

and Payroll Talent Management

Time and Attendance

Management

Workforce Planning and

Analytics

Finance Financial Performance

Management

Accounting and

Financial Close

Treasury and Financial

Risk Management

Collaborative Finance

Operations

Enterprise Risk and

Compliance Management

Procurement Supplier Discovery and

Lifecycle Management

Strategic Sourcing and

Contracting

Procurement and Order

Collaboration

Collaborative Invoice

to Pay Commodity Management

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management IT Service Management

IT Strategy and

Governance

Multichannel Marketing Management

Enterprise Mobility Consumer

Experience Data Management Analytics

3D Business

Visualization

Executive

Summary


© 2013 SAP AG 8 / 42

Higher new product revenue

(as % of total revenue) for

organizations that drive

growth with continuous

innovation

Source: SAP Performance

Benchmarking

With intense global competition and ever-increasing

customer demands, the ability to bring high quality,

innovative products to market rapidly has become the

key differentiator driving success for companies in the

automotive industry.

Collaborative Product Development

The pace of innovation is accelerating. We

have swiftly changed gears from the age of

components to the age of innovative systems.

Today, 80% of new innovation in automobiles is

in electronics.

Customers now want a vehicle experience that

goes beyond mere transportation. Desirable

vehicles feature new technologies as standard

inclusions.

With an automotive environment made up of

global platforms and products that are designed

and engineered by global teams, automotive

companies need global access. This means

driving high levels of collaboration and the

ability to share data in real time.

While trying to improve operational efficiencies,

you also need to manage increasing safety

standards and stringent environmental

mandates. Vehicles must now meet new and

evolving safety standards, consume less fuel,

produce less pollution, and leave a smaller

carbon footprint.

34%

SAP Solutions

Priorities

SAP Solutions

Executive

Summary


Product Innovation

https://valuemanagement.sap.com/disclaimer/

© 2013 SAP AG 9 / 42

Shorter time to market for new

products in organizations that

institute formal product life-

cycle management process


Benchmarking

Benefits

Accelerate time to market

Increase global collaboration

Unify consistent data

Improve quality

Streamline design changes

Collaborative Product Innovation

Deliver high quality, innovative, desirable vehicles, and accelerate time

to market.

Leverage software for global product design and engineering teams to collaborate

and innovate in real time, and improve agility to master unexpected challenges.

Continuous

Product and

Service Innovation

Continuous product and service innovation can help you become more competitive,

achieve profitable growth, and shorten time to market.

Integrated Product

Development for

Discrete Industries

Integrated product development can shorten the product development cycle,

increase collaboration, minimize material costs, and enable a consistent and

accurate source of product data.

Embedded Product

Compliance

Embedded product compliance helps safeguard revenue and brand value by

supporting the required information management and compliance controls in an

end-to-end process.

SAP Solutions

Priorities

SAP Solutions

14%

Executive

Summary


Product Innovation


© 2013 SAP AG 10 / 42

Lower manufacturing cost (% of total revenue) for organizations where execution systems and shop floor are integrated with enterprise applications


Benchmarking

Under intense competitive pressure, automotive

manufacturers need to reinvent themselves. Best-run

companies deliver more performance by optimizing

manufacturing processes, reducing inventories, and

synchronizing logistics processes.


Productivity and manufacturing efficiency are

critical to achieving profitability in the auto-

motive industry. Compressed production

schedules, uncertainty and risk in the supply

chain, more stringent government regulations,

and increasingly demanding customers all

create the imperative to operate with speed

and flexibility.

Best-run automotive manufacturers achieve

efficiency by aligning stakeholders and

processes across engineering, supply chain,

and manufacturing to create an integrated team

that can swiftly respond to shifting requirements

and demand signals.

The result? You can increase manufacturing

efficiency, minimize or even eliminate waste,

improve manufacturing asset use, and contain

product inventories – all to lower the cost of

manufacturing. Plus, you can produce high

quality, desirable vehicles and increase

profitability.

10%

SAP Solutions

Priorities

SAP Solutions

Manufacturing and

Logistics

Executive

Summary



© 2013 SAP AG 11 / 42

Of automotive companies do

not have automated line

design, line balancing, demand

management, lean execution,

and kanban management


Benchmarking

Benefits

Reduce manufacturing costs

Increase efficiency

Reduce inventories

Improve control and execution

Synchronize manufacturing and supply


Manufacture and distribute products efficiently and cost effectively.

Drive profitability and win market share. Innovate and build high-quality products

and vehicles that consumers want by adopting proven automotive best practices.

Operational

Procurement and

Inbound Logistics

for Direct Material

Connect all supply processes across all departments to enable an efficient supply

process.

Lean

Manufacturing

Reduce build time, ensure effective use of production capacity, and minimize

unproductive labor and resource consumption.

Make to Order Enable manufacturing visibility and flexibility to produce highly variant products.

Outbound Logistics Optimize the flow of goods by matching demand and supply. 67%

Priorities

SAP Solutions

SAP Solutions

Executive

Summary


Manufacturing and

Logistics


© 2013 SAP AG 12 / 42

Higher forecast accuracy for

organizations that collaborate

with external business partners

(contract manufacturer,

suppliers, and so on)


Benchmarking

Automotive companies depend on a complex and

interdependent, multitiered global supply network.

Best-run automotive companies collaborate transparently

across the supply chain to reduce costs, optimize plans,

and avoid disruption.


Automotive OEMs and suppliers face ever-

increasing complexity and interdependence in

their global supply chains. Tremendous volatil-

ity – both in the availability of raw materials and

in price fluctuations – constantly challenges the

efficacy of this supply chain.

To mitigate these pressures without increasing

the cost to the consumer, you are compelled to

focus on integrating your supply chains. You

need to create transparency so you can

respond to variances in supply and price as

well as recognize and mitigate supply chain

events that could disrupt the flow of materials.

By leveraging clear insight, you can take

advantage of emerging opportunities.

Early and accurate understanding of

performance and risk is critical to enabling the

optimal flow of materials to production. Only

companies with this accurate and early insight

will be better positioned to drive operational

excellence.

7%

Priorities


SAP Solutions

SAP Solutions

Executive

Summary



© 2013 SAP AG 13 / 42

Lower transportation spend

(% of revenue) for organizations

that collaborate with contractors

and suppliers to get visibility

into supply situation


Benchmarking

Benefits

Optimize supply chain performance

Increase efficiency

Manage transportation activities and spend

Mitigate risk and volatility

Improve service levels and reduce costs

Ensure smooth material flows


Optimize efficiency and drive down cost and risk in global supply networks.

Integrate supply chain processes and networks to deliver real-time visibility into

key performance metrics that help you detect and avoid risks.

Service Parts

Management Service parts management provides real-time visibility into service parts inventory

to meet customer service levels, maximize inventory turnover, and minimize costs.

Transportation

Management

Transportation management helps you manage spend and optimize accurate order

fulfillment by integrating all aspects of the transportation process.

Supply Chain

Execution

Supply chain execution enables you to integrate the business processes required

to manage activities related to supply, inventory, and demand for better visibility.

Priorities

SAP Solutions

11%

SAP Solutions

Executive

Summary




© 2013 SAP AG 14 / 42

Of organizations have a

360-degree view of customers

to optimize interactions in

marketing


Benchmarking

Automotive customers are sophisticated, well informed,

and have high expectations of the purchasing and

ownership experience. Best-run automotive companies

leverage 360-degree views of customers and vehicles

to meet these expectations.

Marketing, Sales and Aftermarket

Competition for market share is at an all-time

high with unprecedented pressure to increase

customer satisfaction and make sales and

service processes more efficient. While there’s

enormous growth potential in emerging markets

as they rapidly expand, mature markets

continue to stagnate. Customers have access

to more information and choice than ever

before and are becoming increasingly fickle

and brand agnostic.

With customers tending to keep their vehicles

longer in mature markets, the erosion of new

vehicle sales opportunities is counterbalanced

by new opportunities to build servicing and

repair business outside of the initial warranty

period.

It is therefore more crucial now to leverage

customer-centric systems that provide visibility

into all aspects of the buying and ownership

experience, based on a complete view of both

customers and vehicles.

16%

Priorities

SAP Solutions

SAP Solutions


Aftermarket

Executive

Summary



© 2013 SAP AG 15 / 42

Higher customer satisfaction

for top 25% of organizations

compared to average

organizations


Benchmarking

Benefits

Increase market share

Improve customer satisfaction

Increase customer loyalty

Deliver positive customer experiences

Improve sales and service profitability

Enhance your customer and vehicle

knowledge

Marketing, Sales and Aftermarket

Increase customer satisfaction, retention, and market share.

Excellence in sales and service operations requires a 360-degree view of vehicles

and customers in order to deliver a positive buying and ownership experience.

Dealer Business

Management Enable customer-centric and efficient dealership operations with horizontal and

vertical process integration.

Vehicle Sales

Management Deliver full visibility throughout the entire vehicle distribution chain.

Customer Service,

Support, and

Warranty

Management

Provide outstanding service and support to differentiate your company from

the competition and build true brand advocates among your customers.

Multichannel

Marketing

Management

Leverage customer segmentation strategies and target marketing tactics to

grow market share. 14%

Priorities

SAP Solutions

SAP Solutions

Executive

Summary



Aftermarket


© 2013 SAP AG 16 / 42

Lower employee turnover

driven by analyzing workforce

data to design, implement,

monitor workforce

optimization strategies


Benchmarking

Effectively aligning business strategy and execution for

a competitive edge requires the best people and talent.

Best-run automotive companies leave the competition

behind and achieve profitable growth by utilizing world-

class talent.

People and Talent

To take advantage of the unprecedented

changes and opportunities in the automotive

industry, you need well-tuned strategic thinking

and expertise.

Leading automotive companies deftly place the

right talent in the right positions to gain unique

advantage in the marketplace.

It’s not just a matter of hiring and then retaining

the right talent, but also providing employees

with the knowledge, insight, and technology to

deliver innovation.

Automotive companies need to shift gears to

take advantage of new markets, adapt to local

business practices, and secure the best local

talent.

Mergers and acquisitions also provide a rich

source of experienced and available talent that

can help you succeed. 32%

Priorities

People and Talent

SAP Solutions

SAP Solutions

Executive

Summary



© 2013 SAP AG 17 / 42

Lower costs for HR

organizations with tight

internal integration compared

to organizations with

fragmented HR environments


Benchmarking

Benefits

Align employees with business strategies

Support expansion into new global markets

Improve engagement and productivity

Provide real-time insight into business

needs

People and Talent

38%

The new technology worker.

Increase employee value and satisfaction by combining global capabilities and

real-time insight with mobile device support to improve business performance.

Core Human

Resources and

Payroll

Consolidate HR and payroll processes on a common global platform to

enhance access to workforce data and improve legal compliance.

Talent

Management

Improve strategic alignment of resources, increase productivity, and accelerate

results by identifying, developing, motivating, and retaining talent.

Time and

Attendance

Management

Streamline time management processes, enhance resource effectiveness,

and better control labor costs.

Workforce

Planning and

Analytics

Identify and understand talent gaps and streamline workforce planning

to more effectively balance workforce demand and availability.

Priorities

SAP Solutions

SAP Solutions

Executive

Summary


People and Talent


© 2013 SAP AG 18 / 42

Lower finance cost (% of

revenue) for top 25% of

organizations compared

to average organizations


Benchmarking

With sustained market volatility and growing pressure on

margins, finance organizations must have best practices

in place and keep a finger on the pulse of the business

with up-to-the-minute financial insight delivered anytime,

anywhere.

Finance

The automotive industry is undergoing a period

of unprecedented change. Twentieth-century

business practices are imploding under the

weight of inefficient management processes,

poor visibility, and disparate and unwieldy

software applications.

The scale of change has forced automotive

professionals to look at the big picture and

replace guesswork with real-time data and

analytical insight to make more informed and

strategic decisions.

CEOs expect their finance executives to take a

more strategic role in creating greater value for

their companies to cut costs, conserve cash,

and reduce debt.

To meet these expectations, finance executives

must balance stewardship with innovation and

cautious entrepreneurship. They also need to

recognize and assess the big picture, while

maintaining incredible attention to detail. 59%

Priorities

Finance

SAP Solutions

SAP Solutions

Executive

Summary



© 2013 SAP AG 19 / 42

Higher operating margin

(in %) where financial systems

provide historical and forward-

looking views into financial and

operational performance


Benchmarking

Benefits

Ensure regulatory compliance

Achieve effective risk management

Outperform financial objectives

Create sustainable value

Deliver superior service at a reduced cost

Finance

Best practices help financial organizations excel.

Achieve financial excellence and use 360-degree processes to create competitive

advantage.

Financial

Performance

Management

Automate key business processes across your enterprise to increase efficiency,

effectiveness, and service – all at a lower cost.

Accounting and

Financial Close

Automate risk, compliance, and international trade activities to ensure regulatory

compliance and effective risk management.

Treasury and

Financial Risk

Management

Leverage data and analytics to plan and manage budgeting and strategy.

Collaborative

Finance Operations Accelerate financial close across global enterprise locations.

Enterprise Risk and

Compliance

Management

Proactively identify the sources of financial data, while identifying risks and shortfalls.

Priorities

SAP Solutions

76%

SAP Solutions

Executive

Summary


Finance


© 2013 SAP AG 20 / 42

Higher average annual

savings for organizations that

operate a single, integrated

procurement system


Benchmarking

While companies often focus on revenue, procurement

savings can increase profits about five times more.

The key to maximizing procurement’s success in this

critical role is to deliver consistent quality, savings, and

compliance over time.

Procurement

Procurement leaders set a baseline for success

by implementing best practices, excelling in

category expertise, and working with key

stakeholders on cost control programs.

While savings is always a priority, new

objectives have emerged as well. Procurement

must manage supplier risk and performance,

improve process efficiency, drive innovation,

and ensure sustainability practices.

You need solutions that give you the tools to

cut costs as well as add value, supporting

processes including spend analysis, sourcing,

contract management, operational procure-

ment, supplier information management, and

risk and performance management – available

both on premise and in the cloud.

These tools, when coupled with an unparalleled

collaborative business network, drive real-time

insight and efficiency that can only be delivered

through the power of “many.”

30%

Priorities

Procurement

SAP Solutions

SAP Solutions

Executive

Summary



© 2013 SAP AG 21 / 42

Higher strategically managed

direct spend for organizations

that operate a single,

integrated procurement

system


Benchmarking

Benefits

Optimize spend under management

Increase average annual savings

Decrease FTEs per billion in spend

Drive innovation with suppliers

Reduce cost and risk with faster turnaround

Procurement

Drive sustainable savings while supporting innovation.

Help ensure best practices in the source-to-pay process, on premise or in the

cloud, while leveraging the power of network collaboration for efficiency and insight.

Supplier Discovery

and Lifecycle

Management

Find new suppliers through the Ariba Network, and manage these relationships through

supplier management solutions.

Strategic Sourcing

and Contracting Identify and act on sourcing opportunities and create favorable, low-risk supply contracts.

Procurement and

Order Collaboration

Realize savings with compliant, user-friendly, self-service procurement. Collaborating on the

Ariba Network makes transactions more efficient.

Collaborative Invoice

to Pay

Drive invoice automation and exception management with available dynamic discounting

on the Ariba Network.

Commodity

Management

Limit the impact of commodity price volatility, automate price calculations, gain visibility,

and manage risks.

Priorities

SAP Solutions

11%

SAP Solutions

Executive

Summary


Procurement


© 2013 SAP AG 22 / 42

Higher IT spend on strategic

initiatives for organizations

where IT architecture is an

integral part of top-management

business planning


Benchmarking

Automakers and suppliers need to align IT with their

business goals – to transform their IT organizations

into a strategic business partner. Business-oriented

IT management is all about maximizing efficiency and

responsiveness.

IT Management

According to a recent study by Gartner, in an

increasing number of companies, the IT

organization is not alone in deciding to invest

in IT projects. Other business units are now

involved in driving IT investment decisions

based on their business value.

In many organizations, IT management is

typically a matter of managing the technical IT

landscape and systems. Yet new technologies

such as mobility, in-memory, and cloud

computing can bring value to the business in an

unprecedented way. They can also make your

IT landscape more complex and require

additional IT management tools to support

them.

To master the business of IT, automotive

companies need to adopt best practices and

leverage a portfolio of solutions to ensure

efficiency, business continuity, and

responsiveness. With a new generation of

technology from SAP, your IT organization can

become more relevant and add strategic value

to the enterprise. 34%

Priorities

IT Management

SAP Solutions

SAP Solutions

Executive

Summary



© 2013 SAP AG 23 / 42

Lower IT spend as % of

revenue for organizations that

have established enterprise-

wide streamlined IT and

business process standards


Benchmarking

Benefits

Align IT spend with business strategy

Shorten IT delivery cycles

Reduce IT maintenance budget

Minimize cost of system upgrade

Reduce cost of risk mitigation

Reduce downtime of business processes

IT Management

Evaluate and control IT risk, ensure flexibility and scale, control and optimize

IT costs, and maximize strategic value from technology.

Align IT spend with business priorities, drive efficiency, increase responsiveness,

and ensure business continuity with a new generation of technology from SAP.

Application Lifecycle

Management Implement application lifecycle management processes, methodologies, and services to

reduce total cost of ownership.

IT Infrastructure

Management

Identify and monitor all network assets and drive an integrated infrastructure and application

lifecycle process.

IT Portfolio and

Project Management

Manage portfolios and projects from start to finish, drive innovation, and develop cross-

functional processes across disparate systems.

IT Service

Management Align your service desk operations with service-level agreements.

IT Strategy and

Governance Automatically track and manage costs and risk across your IT landscape.

23%

SAP Solutions

Priorities

SAP Solutions

Executive

Summary


IT Management


© 2013 SAP AG 24 / 42

“Cloud, social networking,

mobility and the strategic use

of information are the four

forces that combine to create

a new era of computing and

new opportunities for

business.”

Source: Gartner, “SAP Is Driving

Analytics, Cloud and Mobility in the

Nexus of Forces,” Donald Feinberg,

August 24, 2012

Automotive companies must drive business

transformation through technology innovation.

Organizations will thrive by improving access

to information and unwiring their businesses to

innovate with customers, partners, and employees.


As automotive professionals become more

sophisticated users of data, their needs

escalate. Up-to-the-minute insights, predictive

analysis, and real-time access to applications

from the latest mobile devices are all standard

requirements. They expect all of these

capabilities to seamlessly integrate with their

preferred social platforms. The number of users

expecting access is growing rapidly.

At the same time, data volumes are exploding,

while the window to capitalize on opportunities

is shrinking. Automotive companies must

leverage the available information and

insights in an entirely new class of real-time

applications.

Developers must have a platform they can use

to innovate faster than ever before.

To speed ahead, auto manufacturers and

suppliers must drive transformation through the

innovative use of technology and enable the

real-time enterprise to improve the value of

information.

4

Priorities


SAP Solutions

SAP Solutions

Executive

Summary


© 2013 SAP AG 25 / 42

“Through 2015, organizations

integrating high-value,

diverse, new information

types and sources into a

coherent information

management infrastructure

will outperform their industry

peers financially by more than

20%.”

Source: Gartner, “Hype Cycle for

Information Infrastructure, 2012,”

Michael Blechar, July 31, 2012

Benefits

Operate your business in real time

Reduce time to value and speed up

innovation

Turn data into an enterprise asset

Unwire business to support innovation,

engagement


Drive change and help your business thrive.

Enable the real-time enterprise by improving the value of information across

the business with timely and predictive analytics – and unwire your employees,

customers, and partners to collaborate and innovate more rapidly.

Analytics Increase the value of data with real-time and predictive analytics and business intelligence.

Data Management Manage critical data with scalability and performance.

Application

Development and

Integration

Develop applications and innovation rapidly in a mobile, always-on world of collaborative

business networks for secure, cloud-scale applications.

Enterprise Mobility Unwire your employees, customers, and partners with proven, highly rated mobile solutions.

Consumer

Experience Use real-time applications to increase productivity and competitiveness.

3D Business

Visualization

Reduce complexity, increase productivity, and improve quality with 3D-enriched processes

and decision making.

SAP HANA Platform Streamline applications, analytics, planning, and predictive and sentiment analysis on a

single platform based on in-memory technology.

20%

SAP Solutions

Executive

Summary


Priorities


SAP Solutions

© 2013 SAP AG 26 / 42

Of companies believe that the

cloud will amplify and accelerate

other technology trends such as

enterprise mobility, Big Data,

and analytics


Benchmarking

With tough economic conditions and stagnant mature markets, automotive companies need to

increase efficiency across the entire product lifecycle by speeding up product innovation times,

improving quality, manufacturing profitably, and better satisfying customers.

Data-driven knowledge is instrumental in driving a strategic advantage through more relevant and

highly targeted marketing. With Big Data and powerful analytics, automotive companies can turn

terabytes of information into a clear insight and competitive advantage.

At the same time, mobile apps are enabling every aspect of your business to fun faster and more

efficiently by providing employees with access to critical intelligence anytime, anywhere.

Cloud computing is providing new ways to unlock extraordinary potential that allows businesses to

run faster and better.

SAP has been a leader in business IT innovation for 40 years. Today, new technologies will enable

automotive businesses to better understand the needs of customers and ensure that business

users have access to the insight they need to improve every aspect of enterprise operations.

Ever-increasing consumer demands and global

competition are driving dramatic changes in the

automotive industry. To take advantage of new market

dynamics, automotive companies need to embrace

technology innovations that drive differentiation,

competitive advantage, and market share.

SAP Innovations

65%

Applications

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

Executive

Summary



© 2013 SAP AG 27 / 42

Use SAP HANA to drive better, more efficient manufacturing and logistics processes and eliminate

errors and disruptions. Achieve immediate access to complex inventory management data. With

real-time inventory monitoring and management, you can reduce inventory and safety stock levels

while avoiding out of stock disruptions.

Cut costs with comprehensive and up-to-the-minute transparency on material demand and supply

so that you only purchase materials and produce and distribute products when they’re actually

required.

Enhance supplier collaboration with immediate updates on demand. Optimal collaboration and

data sharing with suppliers drives the ability to optimize products and processes. Synchronize

demand and supply for global planning.

Analyze and monitor vast amounts of data continuously and in real time to react to demand and

supply volatility and maximize supply chain reliability and efficiency. Simulate “what if” scenarios in

real time. By rapidly processing and analyzing information, you can gain competitive advantage by

identifying customer trends and ways to improve manufacturing efficiency.

SAP Business Suite software powered by SAP HANA

enables automotive companies to optimize manufacturing

and logistics processes by better managing material

inventories and balancing supply with demand for

innovative vehicles and products that meet or exceed

customers’ expectations – all at optimal cost.

SAP Business Suite Powered by SAP HANA

SAP Innovations

Executive

Summary


Applications

SAP HANA

Mobile

Analytics

Cloud

© 2013 SAP AG 28 / 42

Global Engineering

Process vast amounts of data to collaboratively speed up innovation, accurately determine cost,

improve quality, and meet regulatory requirements, so you can reduce time to market for products

that customers want.

Manufacturing

Gain faster insight from the vast amounts of data generated in manufacturing activities. Big Data

solutions powered by SAP HANA can help improve operational efficiency and reduce

manufacturing costs.

Global Supply Networks

Analyze and monitor vast amounts of data continuously and in real time to react to demand and

supply volatility and maximize supply chain reliability and efficiency.

Marketing, Sales, and Service

Leverage the insights available from Big Data to understand customer sentiment. Deliver positive

customer experiences by leveraging customer and vehicle data.

An enormous amount of data is being generated and

collected every second – creating significant opportunities

for automotive companies. With SAP HANA, companies

have the ability to rapidly process and analyze information

for collaborative innovation, manufacturing efficiency, and

customer insight.

SAP HANA

53% Of organizations report a big

gap between the availability

of Big Data and their ability

to analyze it for insights


Benchmarking

Executive

Summary


Applications

SAP HANA

Mobile

Analytics

Cloud

SAP Innovations



© 2013 SAP AG 29 / 42

Higher operating margins

where enterprise mobility is

embedded in all business

processes


Benchmarking

Mobile first. Consumers and businesses alike all turn to mobile first. Consumers research and

compare vehicles and make test-drive or service appointments. Businesses have untethered their

employees from offices and desks by extending their business processes to mobile devices.

Leveraging our mobile solutions can help you speed innovation and improve collaboration.

Manufacturing and Operations

Enhance the manufacturing process with fast and clear access to work instructions, changes in

production flow, and quality issues.

Supply Chain

Use mobile solutions to monitor and optimize your supply chain and ensure smooth delivery.

Rapidly respond to exceptions and possible disruptions, and increase your agility to quickly identify

and take advantage of new opportunities.

Sales and Service

Optimize the customer experience with information at the point of interaction with the customer,

wherever you are, whatever the time, and whatever the device.

Mobile solutions makes business processes more

efficient, timely, and cost effective in the automotive

industry. Accessing actionable intelligence for engineer-

ing, manufacturing, supply chain, and sales and service

organizations, anytime and anywhere, drives true

competitive advantage.

Mobile

24%

Executive

Summary


Applications

SAP HANA

Mobile

Analytics

Cloud

SAP Innovations


© 2013 SAP AG 30 / 42

Higher inventory turns with

warehouse analytics


Benchmarking

Automakers must leverage everything at their disposal to shift into the fast lane. Analytics solutions

from SAP provide visualization across relevant data to support optimal decision making.

Engineering

Use analytics to improve collaborative insight and support your engineering organization.

Allow engineers to visualize complex data to rapidly bring new, high quality products to market.

Manufacturing

Enhance operations by better utilizing plant assets. Identify production hot spots that need closer

attention and more efficiently align supply with demand.

Supply Chain

Provide greater visibility into the supply chain and enable a rapid collaborative response to

challenges and opportunities.

Marketing, Sales, and Service

Create a 360-degree understanding of customers and their vehicles to deliver a positive customer

experience.

Turbo-charging your business performance requires

up-to-the-minute performance insight across your entire

business. Automotive industry-specific performance

analytics software helps you rapidly conquer your

diverse – and unique – challenges.

Analytics

26%

Executive

Summary


Applications

SAP HANA

Mobile

Analytics

Cloud

SAP Innovations


© 2013 SAP AG 31 / 42

Of organizations believe

that cloud will amplify other

technology “megatrends” (for

example, mobility, Big Data,

analytics, and so on)


Benchmarking

SAP has invested in cloud solutions to help automotive companies change gears and optimize

and accelerate activities across the value chain. Cloud-based solutions, such as the SAP

StreamWork application, allow collaboration, discussion, and agreement across all automotive

processes.

Cloud-based solutions from SAP also support your end-to-end business processes on demand,

so you can benefit from process efficiency throughout engineering, manufacturing, supply chain,

and sales and service businesses while containing operational and deployment costs.

New business models built on, or enabled by, the cloud are transforming the automotive industry.

The connected car is an example of how cloud-based technology is opening up new business

opportunities and new ways to interact with customers. Cloud-based solutions from SAP deliver

new opportunities to enhance loyalty and speed up revenue optimization from commercial

vehicles. Cloud-based technologies can also be used to enhance the ownership experience for

customers who drive fuel-efficient, and environmentally-friendly passenger cars.

The speed and flexibility offered by cloud computing

creates new opportunities for best-run automotive

companies. Cloud applications from SAP and the open

SAP HANA Cloud platform allow companies to build

differentiating vehicles, establish nimble global business

networks and connect faster and more directly with

customers.

Cloud

65%

Executive

Summary


Applications

SAP HANA

Mobile

Analytics

Cloud

SAP Innovations


© 2013 SAP AG 32 / 42

SAP customers represent 79% of Global 500 companies.

SAP customers represent 85% of the top 100 most valued brands in the world.

Our customers manufacture more than 77,000 automobiles per day.

7 of the Forbes 50 Most Admired Companies in the World are SAP automotive

customers.

7 of the Forbes 100 Biggest Public Companies in the World are SAP automotive

customers.

Best-Run Customers

Al-Mansour Automotive

Best-Run Customers

Dana Holding

TMHU

PSA Peugeot Citroën

Valeo

Why SAP?

Executive

Summary


© 2013 SAP AG 33 / 42

SAP co-innovates with leading automotive companies using the global Automotive

Executive Advisory Council to drive priorities. Its member companies spur

co-innovations and enhancements across the entire automotive value chain.

Customer Co-Innovation

Automotive Executive Advisory Council

The Automotive Executive Advisory Council enables C-level executives to discuss and guide new

business innovations, technologies, and best practices to support best-run companies.

Co-Innovation Partners

Co-innovation workgroups of the Automotive Executive Advisory Council focus on in-memory

computing, mobile solutions, and dealer business management in addition to engineering,

manufacturing, and sales and service topics.

45% Of companies are regular

members of the Automotive

Executive Advisory Council

Executive

Summary



Dana Holding

TMHU


Valeo

Why SAP?

Best-Run Customers

© 2013 SAP AG 34 / 42

Al-Mansour Automotive Company is one of Egypt’s largest

importers, distributors, and retailers of motor vehicles, and

is the sole distributor of General Motors products.

The firm has a total market share of 27.7% and wanted to increase that

penetration via initiatives to generate more sales and improve service.

That’s why it turned to SAP Business Suite software and solutions from

the SAP for Automotive solution portfolio.

Key Benefits

Enabled growth plans without commensurate increase in headcount

Maintained highest operational key performance indicators of any

regional GM distributor

Enhanced Inventory control

Improved customer satisfaction

Shortened distribution delivery times

Improved customer satisfaction with reduced delivery times

Remarkable productivity gains

Streamlined processes and workflow

Executive

Summary



Dana Holding

TMHU


Valeo

Why SAP?

Best-Run Customers

© 2013 SAP AG 35 / 42

Dana Holding Corporation, headquartered in Maumee, Ohio, is

a global supplier of engineering, manufacturing, distribution,

and service of drivetrain technologies, sealing systems, and

thermal management solutions.

Dana Holding Corporation chose the SAP ERP and the SAP Extended

warehouse applications to bring European aftermarket business in-house

after 10 years of outsourcing to improve service control and reduce costs.

Key Benefits

Replacement of disparate systems with a single global solution

A single integrated system to support the entire international

aftermarket distribution network

Closer customer relationships with improved satisfaction and sales

Greater visibility of operations to match supply and demand

Reduced costs and improved service levels

6 Months implemen-tation time at a new distribution center with no unplanned down time for customers

15% Improvement in customer order fill rate (from 80% to 95%)

85% Reduction in customer orders past due within six months

Executive

Summary



Dana Holding

TMHU


Valeo

Why SAP?

Best-Run Customers

© 2013 SAP AG 36 / 42

PSA Peugeot Citroën is Europe’s second-largest automaker

and number seven globally, producing 3.2 million cars in 2009.

PSA Peugeot Citroën wanted to improve productivity in its 28 manu-

facturing facilities worldwide, 4 technical centers, and 1 tertiary site.

PSA replaced its legacy plant maintenance applications with the

SAP Enterprise Asset Management solution and developed standard

business processes based on best practices. In the next few years, the

solution will pay back PSA’s investment through heightened efficiency

and a better spare-parts list.

Key Benefits

Achieved productivity and organizational improvement throughout

the plants

Reduced spare parts inventory

Eliminated data reentry

Achieved productivity and quality targets

Improved preventative maintenance

Increase equipment availability

Production feedback loop to engineering

Executive

Summary



Dana Holding

TMHU


Valeo

Why SAP?

Best-Run Customers

© 2013 SAP AG 37 / 42

As the country’s leading lift-truck supplier, Toyota Material

Handling U.S.A. Inc. (TMHU) supports independent dealers

nationwide.

TMHU chose SAP software including the SAP Customer Relationship

Management application to improve sales visibility and accuracy of

dealer sales quotations. TMHU also gained efficiency in order processing

and the management of its dealer discounts.

Key Benefits

Increased win rates with integrated lead management, marketing,

and analytics

Improved sales team productivity

Improved accuracy of sales quotations

Better visibility into sales pipelines and end-user pricing

Significant savings due to eliminating variance in dealer discounts

15% Improvement in market awareness

85% Reduction in order confirmation times

100% Accuracy of sales quotation and dealer discount spend

Executive

Summary



Dana Holding

TMHU


Valeo

Why SAP?

Best-Run Customers

© 2013 SAP AG 38 / 42

Part of the Paris-based Valeo Group, Valeo Service Benelux

B.V. supplies original equipment spare parts to automakers

and replacement parts to the independent aftermarket.

Valeo is aware that to maintain its strong market position, it needs to

constantly improve customer service and operational efficiency. Very

satisfied with its existing SAP ERP application, Valeo decided to

implement SAP warehouse management functionality. Having the

entire order-to-delivery process on a single platform would provide

the necessary degree of control and traceability.

Key Benefits

Improved stock and replenishment accuracy

Increased fill rate and eliminated second warehouse despite

25% increase in SKUs

Improved order and delivery traceability and improved customer

satisfaction

Paper-based picking replaced by mobile terminals with increased

accuracy and efficiency

99% Order and inventory accuracy

15% Improvement in fill rate

8% Fewer days in inventory

Order to delivery reduced from next day to 4–5 hours

Executive

Summary



Dana Holding

TMHU


Valeo

Why SAP?

Best-Run Customers

© 2013 SAP AG 39 / 42

SAP empowers automotive companies to accelerate product innovation, improve

quality, reduce manufacturing costs, and sell and service vehicles more profitably.

This helps drive market share growth in a highly competitive global market.

Tightly integrated end-to-end business solutions

SAP offers automotive companies a comprehensive and fully integrated portfolio of end-to-end

solutions.

Leveraging breakthrough innovations

The SAP solution portfolio delivers a robust and innovative technology foundation for automotive

companies and includes applications, in-memory computing, mobile solutions, analytics, and cloud

solutions. The full portfolio optimizes business processes and drives efficiency at the lowest

possible cost.

40 years of delivering value to the automotive industry

The world’s most successful automotive manufacturers, suppliers, and sales and service

organizations rely on SAP software to provide the foundation that drives performance and a

competitive edge.

Why SAP?

Executive

Summary



Dana Holding

TMHU


Valeo

Why SAP?

Best-Run Customers

© 2013 SAP AG 40 / 42

The best-run automotive organizations rely on SAP:

Why SAP?

79% of the Global Fortune 500 companies are SAP customers.

100% of the top-scoring companies in the Dow Jones Sustainability World Index rely on

SAP software.

85% of the top 100 most valued brands in the world are SAP customers.

77,000 vehicles per day are manufactured by automotive companies that are SAP customers.

3,000-plus automotive companies worldwide rely on SAP.


Dana Holding

TMHU


Valeo

Why SAP?

Executive

Summary


Best-Run Customers

© 2013 SAP AG 41 / 42

Benchmark Your Performance

Position your organization for dominance in this new economy with the business performance

benchmarking program from SAP – available free to SAP customers and select prospects. The

SAP benchmarking program has helped more than 3,000 organizations assess their strengths,

uncover areas for improvement, and identify best practices and IT strategies that generate clear,

tangible value – not someday, but today.

Go Live in Weeks

Here’s the fastest way to run your business better: our rapid-deployment solutions. In one

package, you get everything you need to be up and running quickly – including preconfigured

software and implementation services – in just weeks. With a defined scope and predictable costs,

there are no surprises.

Join Your Community of Practices

Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work. It

lets members help one another solve problems, learn, and invent new ways to get things done –

faster. Find out how to connect with people, content, and resources.

Find Out More About How Your Organization Can

Become Best-Run

Visit valuemanagement.sap.com >>

Visit sap.com/solutions/rds >>

Visit scn.sap.com >>

Executive

Summary


https://websmp105.sap-ag.de/solutionpackages

https://valuemanagement.sap.com/

http://www1.sap.com/solutions/rds

http://www.sdn.sap.com/irj/scn

Industry Executive Overview

Automotive

Visit us online to find out more:

Web:

www.sap.com/industries/automotive

Community:

http://scn.sap.com/community/automotive

Executive

Summary


© 2013 SAP AG

CMP 23653 (13/02)

http://www.sap.com/industries/automotive

http://scn.sap.com/community/automotive

© 2013 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission

of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other

software vendors. National product specifications may vary.

These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only,

without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to

the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty

statements accompanying such products and services, if any. Nothing herein should be construed as constituting an

additional warranty.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered

trademarks of SAP AG in Germany and other countries.

Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information

and notices.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise

technology users to select only those vendors with the highest ratings. Gartner research publications consist of the

opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all

warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a

particular purpose.

http://www.sap.com/corporate-en/legal/copyright/index.epx



the innovation-driven enterprise

Technology

sap ag2

sap ag4

sap ag5

sap ag3

automotive priorities

advantage of sap technology

automotive industry

automotive company