The Future of The Digital Economy and SAP's Role

The Future of
the Digital Economy

and SAPs Role
April 2015
2015 SAP AG. All rights reserved.
i-SWATINTERNAL
1
For more than 40 years, SAP has helped businesses

run better and improve peoples lives
For the world
For business
For you
74%
98%
97%
of the worlds transaction

revenue touches an SAP system
SAP customers represent

98% of the top 100 most
valued brands in the world
Mobile solutions from SAP reach

97% of the worlds mobile
subscribers via text messaging
Sources: McKinsey/SAP analysis update 04/2013; SAP Corporate Fact Sheet 1/2015.
2015 SAP SE or an SAP affiliate company. All rights reserved.
i-SWAT
We are the worlds largest provider of enterprise

application software
THE cloud
company
powered by
SAP HANA
Fastestgrowing
database
vendor
Fastest-growing
company
at scale
in the cloud
Market leader
for mobile apps
for business
Market leader
in products
for business
analysis
SAP HANA
is the market
leading platform
for real-time
computing
Source: SAP Corporate Fact Sheet 1/2015

i-SWAT
Our most recent key results and figures
87%
98%
100%
80%+
of Forbes
Global 2000
of the 100
most valued
brands
of Forbes top
sustainability
companies
are SME
companies
Customers
Financials
Solutions
14.87 billion
5.5 billion
17.5 billion
(+6%)
software and software-related
services revenue
(+4%)
software and cloud revenue
(+4%)
Total revenue
25
11
industries
lines of business
SAP HANA
5,800 SAP HANA customers
1,800 startups
8,500 trained partners
Employees
74,406
79%
employees
Employee
Engagement Index
EMEA: 33,340
Americas: 22,071
APJ: 18,995
120+
70%
nationalities worldwide
Business Health
Culture Index
Source: SAP Corporate Fact Sheet 1/2015; SAP Integrated Report 3/2015
i-SWAT
SAP HANA Platform
SAP Business Suite
SAP HANA Apps
SQL
MDX
SAP HANA
Accelerators
SAP BW on HANA
JSON
Any Apps
Any App Server
Open Connectivity
SAP HANA Platform

Extended Application Services
App Server| UI Integration Services | Web Server
Development
OLTP | OLAP | Search | Text Analysis |Predictive | Events | Spatial | Rules | Planning | Calculators
Administration
Supports any Device
Processing Engine
Database Services
Application Function Libraries & Data Models

Predictive Analysis Libraries | Business Function Libraries | Data Models & Stored Procedures
Integration Services
Data Virtualization | Replication | ETL/ELT | Mobile Synch | Streaming
Transaction
Unstructured
Machine
HADOOP
Real-time
Locations
Other Apps
i-SWAT
5
SAP HANA platform
6.400 +
2.846 + 815.400 +
SAP HANA Platform
Faster
Smarter
Simpler
Process massive amounts of

data, and deliver information
at unprecedented speeds
Rethink and envision entirely

new ways and applications to
run your business
Dramatically simplifies
complex and expensive
IT architectures
i-SWAT
6
SMART TRAFFIC
i-SWAT
7
5 Steps to enable IoT business model

3 REAL TIME
PERFORMANCE
2 SMARTIFY DATA
1 CAPTURE THE SIGNAL

THINGS & DEVICES
SAP IoT
SAP
INDUSTRY
SCENARIOS
PEOPLE
SQLA
EVENT STREAM
PROCESSING
PREDICTIVE
ANALYTICS
REAL TIME
TRANSACTION
4 MONETIZE
THIRD
PARTY
APPLS
BILLING
REVENUE
FRAUD MGMNT.
5 REAL TIME BUSINESS PLATFORM
SAP HANA
Platform for Internet
of Things
SQL
i-SWAT
8
The Internet of Things

During 2008, the number of things connected to the Internet
exceeded the number of people on earth
50b Things
25b Things
7.6b People
2003
2010
2015
2020
Cisco Internet Business Solutions Group (IBSG), April 2011 and Morgan Stanley, October 2013
The Internet of Things
99.4%
of connectable physical objects are not yet connected
to the
Internet of Things1
200
unique devices per consumer that could
be connected2
KPI 10
1. Cisco, 2. Morgan Stanley
10
CITIZEN
INTELLIGENCE
INNOVATION
BILLING
REAL TIME
OFFER
CITIZEN
PREDICTIVE
MAINTEN.
SMART
LOGISTICS
NETWORK
OPERATIONS
SMART
TRAFFIC
PLANNING
OPERATION
KPIs
EMISSION
ASSET
EXCELLENC
SMART TRAFFIC
CITY
TRANSACTIONAL
ANALYTICAL
GEOSPATIAL
GRAPH
PREDICTIVE
IOT
SAP HANA INNOVATION PLATFORM

11
SMART TRAFFIC ON SAP HANA

DATA OF A SAMPLE MEGA CITY IN CHINA
PRIVATE CAR (RFID)
TAXICAB (GPS)
VIDEO CAMERA
3B+ RECORDS/YR
8B+ RECORDS/YR
2.4B RECORDS/YR
METRO PASSENGERS
BUS PASSENGERS
BUS (GPS)
~1B RECORDS/YR
~1B RECORDS/YR
6B+ RECORDS/YR
12
SMART TRAFFIC ON SAP HANA

MAJOR CUSTOMER NEEDS
PRIVATE CAR (RFID)
TAXICAB (GPS)
VIDEO CAMERA
3B+ RECORDS/YR
8B+ RECORDS/YR
2.4B RECORDS/YR
HOW TO LEVERAGE TRAFFIC RELATED BIG

DATA TO GET MORE BUSINESS VALUES?
BIG DATA TO BE YOUR TREASURE NOT BURDEN
METRO PASSENGERS
BUS PASSENGERS
BUS (GPS)
~1B RECORDS/YR
~1B RECORDS/YR
6B+ RECORDS/YR
13
CONNECTED
TRANSPORT
Leverage big data
scenarios with
connected vehicles and
transportation networks
CONNECTED
CITIZEN
360 view of travellers and
citizens in order to offer
the most relevant service
BUSINESS
MODELS
Interact with all
stakeholders to
generate new business
models and municipality
improvement
REAL TIME INNOVATION PLATFORM
14
Five areas of Focus at Nanjing
15
Nanjing
16
Zone and Travel Patterns

Traffic Analysis Zone
Total aggregate number of

Origin / Destination much
like Traditional trips based
zoning
Clustering which is based
on the behavior of trip
distances that travelers
take from the origin
Clustering: which
destination do the travelers
mostly head to in much the
same vain as a social
network analysis (
Pattern Based Zoning

Total aggregate Origin
Destination
Clustering: Trip distances

from Origin
Clustering: Behavior of
direction of travel
(destinations)
17
CITY TRAVEL PATTERN DISCOVERY

ORIGIN-DESTINATION ANALYSIS TAZ MATRIX
VIDEO
18

19

20

ORIGIN-DESTINATION ANALYSIS CHORD FOR CONNECTIVITY & COMMUNITY
21

ORIGIN-DESTINATION ANALYSIS CHORD FOR CONNECTIVITY & COMMUNITY
22

ORIGIN-DESTINATION ANALYSIS TAZ TEMPORAL CHARACTERISTICS
23
(Smart) Operations
Control Center
i-SWAT
24
Demo Video Recording: Decision (2) SAP City-App The Customers App
25
Demo Video Recording: Decision (3) SAP City App: The operator's view details
26
Awareness
Overview of all
assets in
circulation and
reserve in a
map view (open
source maps /
Google Maps)
Frequency of
fleet in
operation
overview with
details
Historic, realtime and

forecast data
from an account
based ticketing
platform
27
Awareness
Drill down on
each fleets
status and
details
Know real time

delays on all
assets and
capability to drill
down on each
assets
Drill down on
load factor at
each stations
28
Impact
Impact of delay on
passengers
travelling on
different route
Impact on
stranded
passengers
awaiting bus
Passengers
planned O-D and
possible number
of impacts that
may affect the
deployment of
fleet
Possible route
planning input for
modifying
frequency and/or
line
29
Decisions
Possible interactions
with passengers:
Coupons
Discount on
tickets
Send message
Twitter updates
A valuable input to
future short term
planning (& long
term as well)
30
Smart Logistics
i-SWAT
31
Smart Logistics solution overview

Logistical hubs, ports, airports, smart cities, transport & logistics
Hamburg Port is the largest port in Germany, and
the second-largest in Europe
Current turnover: 9 million containers/year.
Until 2025, an increase to 25 million containers is
expected.
Goal: make the infrastructure future-ready increase container turnover and optimize traffic
for Hamburg Port Authority, reduce idle times for
carriers.
What fascinates me most about the [Smart Port

Logistics] project is its power of innovation and
the collaboration with strong partners.
Sascha Westermann
Operational IT Traffic Management, Hamburg Port Authority
Watch the complete video at http://www.youtube.com/watch?v=Zv46j2WZ3jU
32
33
Smart Logistics solution overview

Logistical hubs, ports, airports, smart cities, transport & logistics
34
Executive Summary
Solution Overview
Value and References
Next Steps
SAP Connected Logistics

Standard roles and look-and-feel: Hub operator
Manages network monitors anonymous traffic maintains geo fences and points of
interest | informs of incidents & sends notifications (automatic using geo fence or manual)
35
Executive Summary
Solution Overview
Value and References
Next Steps

Standard roles and look-and-feel: Dispatcher
Invites subcontractors monitors traffic of own fleet dispatches tours and freight |
communicates with drivers or other business partners
36
https://www.youtube.com/watch?v=84I9VJIF9KU
37
38
Efficient
Operations
i-SWAT
39
ARI
Unlocking the power of big real time data - for fleet management
http://www.youtube.com/watch?v=xtFTaLWv8Is
https://www.youtube.com/watch?v=xtFTaLWv8Is
40
41
Predictive
Maintenance
i-SWAT
42
SAP Predictive Maintenance and Service

Leverage operational insights to drive innovative new business models
Remotely sense operational
data from equipments
Sense
Monitor
Analyze
Predict
Act
Analyze and monitor equipment

data and correlate with
business information to predict
future malfunctions
Optimize maintenance and

service operations and enable
new business models around
the equipment
Typical results*
Organizations adopting preventive and predictive maintenance and service approach as compared to organizations
practicing reactive maintenance and service
-44%
Lower unplanned
downtime
-17%
Lower annual service and

maintenance costs
+28%
Higher return on assets

* SAP performance benchmarking
43
Predictive Maintenance
44
Predictive Maintenance
45
SAP Predictive Maintenance and Service Fleet Health on the sky
https://www.youtube.com/watch?v=pDj5DjCBFig
46
Connected
Citizens/Consumer
s
i-SWAT
47
MOBIETT
48
Citizen Engagement Intelligence

1. Harvest Data
5. Trigger Actions
Trigger campaigns,
report on success,
compare to control groups
From various sources:

social, clicks, emails, sales,
automatic interpretation
Consumer
4. Build Target Groups

intelligently
2. Merge Interactions
Prepare target groups,

use predictive algorithms
On topics,
on consumers
Interactions
Predictive Analytics
Select algorithm,
train predictive model
3. Gain Insights
Understand trends,
prepare ad hoc actions
49
New Channels
50
Relevance Drives Value
Precision
1:1 Personalization
At the point-of-decision
Timeliness
Location-based
offers
I know where my
customers are,
but everyone gets
the same offer.
CRM-based
offers
I know who my
customers are,
but can I reach
them when it
counts?
Personalization
51
City of Montreal
Over 340 merchants, and 1,000 events being added to the program
City of Montreal
Mapping stores vs STMs lines and

stations
STM Partners stores
https://www.youtube.com/watch?v=tBIJ_Rc
va_Y
52
53
Enthusiastic feedback from the media

Broad
coverage from the press, regional & national radio and TV

networks
54
Consumer Adoption & Usage

Shattering a few myths
Consumers
are eager to use the new service
Rapid consumer adoption based on word-of-mouth

only
Over 20,000 downloads of the iPhone application in
the first few weeks
Repeat usage with more than 300,000 sessions

Willingness to participate and share personal
information with STM. More than 50% of consumers
willing/eager to share personal profile
55
Business Impact
What we see 16 weeks after launch
Key
marketing metrics moving into double-digit territory
Large volumes making this marketing

channel relevant to merchants
Over 4,000,000 offers sent by batches of
10
Substantial impact on consumer behavior
Top 10 offers enjoyed average click
through rate of 67%, and validation rate
of 64%
Click-through rate for over a third of the
offers is above 10%
56
Vendor Activation Portal

Enable a new Channel for partners
57
Vendor Activation Portal

Enable a new Channel for partners
58
Activate the Ecosystem

Deploy Loyalty Programs
Mapping stores vs STMs lines and

stations
STM Partners stores
59
SAP MOBILE WALLET
Stored Value
Accounts
Stored Value
Cards
PrePaid Tickets
Cupons
Payment
Instruments /
Integrations
Mobile Wallet
60
Beacons
61
For Innovative Points of Sale
Indoor
Location
Check-in
Coupons
Contacless
Payment
Proximity
Marketing
62
INFONOMI
63
Monetise WiFi access with Wittos
64
65
Business Models
i-SWAT
66
Value creation
TECHNOLOGICAL ADVANCES LEAD TO

DIGITAL TRANSFORMATION
MOBILE, NFC, BANK CARDS, APPS
CONTACTLESS, SMART
CARDS
MAGNETIC STRIPE, FARE MEDIA
TOKEN, PAPER
TICKET
COINS, NOTES,
CASH
<1990s
2000s
2010s
67
MOVING FROM A SINGLE PHYSICAL TICKET

TO CONNECTED SERVICES
Connected Services
Ticket
Multi-modal
Ticket +
Services
Use
NEW REVENUES
Account based
Ticketing / Smart
ticketing
Usage based
Value added
services
COMPETITIVE
DIFFERENTIATIO
N
CUSTOMER
INTIMACY
SMART
COMMERCE
68
PARTNERSHIPS
(MULTI-OPERATORS, SUPPLIERS)
City Services
Toll Collect
Travelers /
Commuters
Parking
Metropolitan
Transit Operator
Railway
Operators
Travel Agency
Advertisers
Enterprises
Hotels
69
Defining a common back office with interoperability as key
Bus lane fines

Road Charging
Parking
Work Place Parking
Public Transport
Concessionary
Wave & Pay

Charging
80%+
Of cost for maintaining
status quo
Chargeable & Concessionary Events

E-mail
Voice
400 million a year spent on

revenue collection at TFL
Matthew Hudson, TFL Business
Development Chief
Usage Collection
SMS
White Mail
Self Service
Pricing & Charging
Mobile Phones
Contactless Card
Collection / Reimbursement
Vending machines
Finance
70
TRANSPORT FOR LONDON:

ENABLING AUTO-PAY CONGESTION CHARGING SCHEME
OBJECTIVE
Revenue Management, Assurance and
policy execution for a Auto-Pay
congestion charge scheme
SOLUTION
SAP hybris Billing, Invoicing and
Customer Financials
BENEFITS
Ability to handle revenue assurance
process through automated and
guaranteed payments
Capacity to manage auto-pay
requirements which are increasing
prevalent in passenger transportation
industry
i-SWAT
71
Belgian Railways
Optimization for Distribution Process
NMBS/SNCB Autonmous government company split in 3 parts in

2005:
Infrabel, Infrastructure
NMBS/SNCB public railways managing freight and
passengers
Holding, for supervision
3500 km
Needs
B2B & B2C complex pricing (season tickets, one-off tickets)

Complex discounts, surcharges, commissions
Apportionment & reconciliation of journeys
Consolidation of data from 3rd party systems
Pre-integration in general ledger
Revenue recognition across a period
Self-service billing, payments for travelers and 3rd parties
Remote Ticketing on board of trains
Granular vie of customer account journeys
Of network
207 million passengers

In 2008
SAP Solution
Improve TTM and increase business flexibility for launching mobility & European travel offers with
SAP CC
High performance real-time pricing & quotations
Minimize customer developments and manual processing with configurable & pre-integrated
components
72
City of Cape Town

Intermodal Smart Travel Schemes
City of Cape Town metropolitan municipality which
governs the city of Cape Town, South Africa and its suburbs
and exurbs
3,740,026 population in 2011
Needs
Flexible and agile pricing/rating capability for all types of services (metro, taxi, buses,
bicycle hires, parking, integrated leisure tickets etc )

Cross charging capability for corporate, personal and families
Give citizen possibility to access their account via self-service
Enable complete 360 view of citizen interaction including smartcard interactions
Citizen cards to access parking,

cycling etc ...
SAP Solution
Rating to applies fares on both traditional tickets and new models, managing high
volumes of transactions
Settlement: Accumulates volume of charges to be paid to partners
Integrated out-of-the-box with CRM
Low TCO
73
CONNECTED
TRANSPORT
Leverage big data
scenarios with
connected vehicles and
transportation networks
CONNECTED
CITIZEN
360 view of travellers and
citizens in order to offer
the most relevant service
BUSINESS
MODELS
Interact with all
stakeholders to
generate new business
models and municipality
improvement
REAL TIME INNOVATION PLATFORM
i-SWAT
74
Simplify Everything
do Anything
i-SWAT
75
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The Future of

the Digital Economy

2015 SAP AG. All rights reserved.

For more than 40 years, SAP has helped businesses

For the world

of the worlds transaction

SAP customers represent

Mobile solutions from SAP reach

We are the worlds largest provider of enterprise

2015 SAP SE or an SAP affiliate company. All rights reserved.

Our most recent key results and figures

SAP HANA Platform

SAP Business Suite

SAP HANA Apps

Any App Server

SAP HANA Platform

Supports any Device

Application Function Libraries & Data Models

2015 SAP AG. All rights reserved.

SAP HANA platform

Process massive amounts of

Rethink and envision entirely

2015 SAP AG. All rights reserved.

2015 SAP AG. All rights reserved.

5 Steps to enable IoT business model

1 CAPTURE THE SIGNAL

5 REAL TIME BUSINESS PLATFORM

2015 SAP AG. All rights reserved.

The Internet of Things

2015 SAP AG. All rights reserved.

The Internet of Things

2015 SAP AG. All rights reserved.

SAP HANA INNOVATION PLATFORM

SMART TRAFFIC ON SAP HANA

PRIVATE CAR (RFID)

2015 SAP AG. All rights reserved.

SMART TRAFFIC ON SAP HANA

PRIVATE CAR (RFID)

HOW TO LEVERAGE TRAFFIC RELATED BIG

2015 SAP AG. All rights reserved.

REAL TIME INNOVATION PLATFORM

2015 SAP AG. All rights reserved.

Five areas of Focus at Nanjing

2015 SAP AG. All rights reserved.

2015 SAP AG. All rights reserved.

Zone and Travel Patterns

Total aggregate number of

Pattern Based Zoning

2015 SAP AG. All rights reserved.

Clustering: Trip distances

CITY TRAVEL PATTERN DISCOVERY

2015 SAP AG. All rights reserved.

CITY TRAVEL PATTERN DISCOVERY

2015 SAP AG. All rights reserved.

CITY TRAVEL PATTERN DISCOVERY

2015 SAP AG. All rights reserved.

CITY TRAVEL PATTERN DISCOVERY

2015 SAP AG. All rights reserved.

CITY TRAVEL PATTERN DISCOVERY

2015 SAP AG. All rights reserved.

CITY TRAVEL PATTERN DISCOVERY

2015 SAP AG. All rights reserved.

2015 SAP AG. All rights reserved.