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The Future of Digital Product Innovation — Achieve Live

Engineering Through Product Individualisation, Data


Orchestration, and Virtual Collaboration
Dan Bender, SAP Labs
your Business Model
Businesses continue to adapt and transform to stay relevant and compete

Digital Business is about providing a new value proposition for your


customers and stakeholders.
It requires focus on business practices, agility and speed.

RE-IMAGINE RE-IMAGINE RE-IMAGINE


Business Models Business Processes Work
• Outcome-based model • Real-time processes • Consumer grade user experience

• Expand to new industries • Predictive processes • Self services

• Digital channel • Collaboration processes • Real-time collaboration

• Compete as an ecosystem • Lean processes • People-Machine Collaboration

• Shared economy • Content rich business processes • Cognitive world & AI

• Digitalization of products & services • Self learning processes

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 2


COMPANIES ARE EXPERIENCING MASSIVE CHANGES
3 STRUCTURAL OPPORTUNITIES

• Direct access to customers


RETHINK CHANNELS
• Massive dis-intermediation

LEVERAGE DATA • Companies with deep knowledge can enter new markets

AS NEW ASSET • Monetize data = new competitive edge

EMBED SOFTWARE • Smarter products & services


</>
EVERYWHERE • Digital DNA & innovation culture

• Every company is a software


company

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 3


New Technologies Are Enabling New Business Capabilities

REAL-TIME COLLABORATION DATA DRIVEN EXPERIENCE


• Simplified business processes • People-to-People • Real world awareness • Mass customization and
Personalization
• Value chain integration • Machine-to-Machine • Digital boardroom
• Mobile (always on)
• Seamless business • People-to-Machine • 360º business insights
• 3D visualization
• B2B • Predictive
• Gaming and simulation
• Self learning machine
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 4
The Digital Transformation

Major shifts in the economy and


technology are accelerating changes
• Customer Centricity

• Serving the “Segment of One”

• Digital smart products

• Digital supply chain and smart factory

• Servitization & new business models

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 5


To transform, we need to extend our definition of PLM

Product: ➢ Mechanical – Electrical – Software


➢ Services delivered through the product
➢ Economic performance

Lifecycle: ➢ Until decomissioning at customer site


➢ Closed Loop – True PLM

Management: ➢ Jointly with customers


➢ Partners – even competitors
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 6
A complete definition of the product is required

Companies need to maintain a detailed


understanding of their products
The digital world
throughout the entire lifecycle:
➢ As Designed, Portfolio and Costs

➢ As Configured, Options and Compatibility

➢ As Built, Process and Delivery

➢ As Maintained, In situ updates

➢ As Operating, In action and environment The physical world

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 7


Digital Supply Chain, powered by SAP Leonardo

Digital
Digital
Response
Manufacturing
& Supply
Digital
Digital
Business
Logistics
Planning
Digital
Digital
Projects
Operations
& Products
Digital Supply Chain
System of Record
connected with the
System of Intelligence
SAP Leonardo
Internet of Cloud
Things Platform

Machine Big
Learning Data

Blockchain Analytics

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 8


True Product Lifecycle Management Supports Live Engineering

Connected Products
Sensor Feedback Loop

Idea Research & Design Service &


Management Manufacturing Field
Development
Operations

SAP SAP Leonardo Foundation


Leonardo
Edge SAP Cloud Platform / SAP HANA platform

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 9


Live Engineering

Wear and tear analysis

LIVE Engineering
Customer Complaints / Service

Problem fixing

Production Engineering

Design Collaboration

Requirements Design Production Installation Operation Decommission

You own it Your customer owns it

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 10


Live Engineering Insights

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 11


© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 12
SAP’s R&D Product Strategy 2020 Business
Networks


Intelligent
Product
Enterprise Portfolio and Cloud for Design
Project Management Analytics Hybris
as a service
Core PLM for Discrete and
Process Industries IoT- Platform

IoT-Services Business Services


SAP S/4HANA
SAP Cloud Platform
SAP HANA Platform Vora

Hadoop

▪ Efficiently manage Core Processes in Product ▪ Collaboration Platform


Development and Portfolio & Project Management ▪ Differentiate through Systems Engineering

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 13


DIGITAL PRODUCT LIFECYCLE MANAGEMENT – Vision Demo
REQUIREMENTS-DRIVEN MANAGEMENT & OPTIMIZATION

LIVE PRODUCT 2 DEVELOPMENT


3 OF PRODUCT COST
1 PERFORMANCE
SAP Intelligent Product Design*:
Requirements & Software Management
SAP Product Lifecycle Costing
SAP Asset Intelligence Network: Analytics Performance
Benchmarking & Product Manager Overview REQUIREMENTS
MANAGEMENT
Thomas PRODUCT
FLEET ANALYTICS Systems Engineer LIFECYCLE
David COSTING
Product Manager Petra
Controller

PHYSICAL ENTITY

DIGITAL TWIN CUSTOMER SALES


ORDER CREATION
6 Hybris: Configure,
Price & Quote
DETAIL ENGINEERING
4
SAP Engineering Control Center: Mechanic
Electric/Electronics & Software Integration DIGITAL TWIN
5 Asset Intelligence Network: Handover
SAP ENGINEERING Thing Definition and Onboarding
CONTROL CENTER INTERNET OF
John THINGS
Systems Engineer SAP HYBRIS
Daniel
Thing Engineer Michael
Customer

*Planned Solution

Planned Innovations
DIGITAL PRODUCT LIFECYCLE MANAGEMENT – Vision Demo (cont.)
REQUIREMENTS-DRIVEN MANAGEMENT & OPTIMIZATION

LIVE PRODUCT 2 DEVELOPMENT


3 OF PRODUCT COST
1 PERFORMANCE
SAP Intelligent Product Design:
Requirements & Software Management
SAP Product Lifecycle Costing
SAP Asset Intelligence Network: Analytics Performance
Benchmarking & Product Manager Overview REQUIREMENTS
MANAGEMENT
Thomas PRODUCT
FLEET ANALYTICS Systems Engineer LIFECYCLE
David COSTING
Product Manager Petra
Controller

PHYSICAL ENTITY

DIGITAL TWIN CUSTOMER SALES


ORDER CREATION
6 Hybris: Configure,
Price & Quote
DETAIL ENGINEERING
4
SAP Engineering Control Center: Mechanic
Electric/Electronics & Software Integration DIGITAL TWIN
5 Asset Intelligence Network: Handover
SAP ENGINEERING Thing Definition and Onboarding
CONTROL CENTER INTERNET OF
John THINGS
Systems Engineer SAP HYBRIS
Daniel
Thing Engineer Michael
Customer

*Planned Solution

Planned Innovation
DIGITAL PRODUCT LIFECYCLE MANAGEMENT – Vision Demo
REQUIREMENTS-DRIVEN MANAGEMENT & OPTIMIZATION

LIVE PRODUCT 2 DEVELOPMENT


3 OF PRODUCT COST
1 PERFORMANCE
Intelligent Product Design:
Requirements & Software Management
SAP Product Lifecycle Costing
SAP Asset Intelligence Network: Analytics Performance
Benchmarking & Product Manager Overview REQUIREMENTS
MANAGEMENT
Thomas PRODUCT
FLEET ANALYTICS Systems Engineer LIFECYCLE
David COSTING
Product Manager Petra
Controller

PHYSICAL ENTITY

DIGITAL TWIN CUSTOMER SALES


ORDER CREATION
6 Hybris: Configure,
Price & Quote
DETAIL ENGINEERING
4
SAP Engineering Control Center: Mechanic
Electric/Electronics & Software Integration DIGITAL TWIN
5 Asset Intelligence Network: Handover
SAP ENGINEERING Thing Definition and Onboarding
CONTROL CENTER INTERNET OF
John THINGS
Systems Engineer SAP HYBRIS
Daniel
Thing Engineer Michael
Customer

*Planned Solution

Planned Innovations
DIGITAL PRODUCT LIFECYCLE MANAGEMENT – Vision Demo
REQUIREMENTS-DRIVEN MANAGEMENT & OPTIMIZATION

LIVE PRODUCT 2 DEVELOPMENT


3 OF PRODUCT COST
1 PERFORMANCE
Intelligent Product Design:
Requirements & Software Management
SAP Product Lifecycle Costing
SAP Asset Intelligence Network: Analytics Performance
Benchmarking & Product Manager Overview REQUIREMENTS
MANAGEMENT
Thomas PRODUCT
FLEET ANALYTICS Systems Engineer LIFECYCLE
David COSTING
Product Manager Petra
Controller

PHYSICAL ENTITY

DIGITAL TWIN CUSTOMER SALES


ORDER CREATION
6 Hybris: Configure,
Price & Quote
DETAIL ENGINEERING
4
SAP Engineering Control Center: Mechanic
Electric/Electronics & Software Integration DIGITAL TWIN
5 Asset Intelligence Network: Handover
SAP ENGINEERING Thing Definition and Onboarding
CONTROL CENTER INTERNET OF
John THINGS
Systems Engineer SAP HYBRIS
Daniel
Thing Engineer Michael
Customer

*Planned Solution

Planned Innovations
DIGITAL PRODUCT LIFECYCLE MANAGEMENT – Vision Demo
REQUIREMENTS-DRIVEN MANAGEMENT & OPTIMIZATION

LIVE PRODUCT 2 DEVELOPMENT


3 OF PRODUCT COST
1 PERFORMANCE
Intelligent Product Design:
Requirements & Software Management
SAP Product Lifecycle Costing
SAP Asset Intelligence Network: Analytics Performance
Benchmarking & Product Manager Overview REQUIREMENTS
MANAGEMENT
Thomas PRODUCT
FLEET ANALYTICS Systems Engineer LIFECYCLE
David COSTING
Product Manager Petra
Controller

PHYSICAL ENTITY

DIGITAL TWIN CUSTOMER SALES


ORDER CREATION
6 Hybris: Configure,
Price & Quote
DETAIL ENGINEERING
4
SAP Engineering Control Center: Mechanic
Electric/Electronics & Software Integration DIGITAL TWIN
5 Asset Intelligence Network: Handover
SAP ENGINEERING Thing Definition and Onboarding
CONTROL CENTER INTERNET OF
John THINGS
Systems Engineer SAP HYBRIS
Daniel
Thing Engineer Michael
Customer

*Planned Solution

Planned Innovations
DIGITAL PRODUCT LIFECYCLE MANAGEMENT – Vision Demo
REQUIREMENTS-DRIVEN MANAGEMENT & OPTIMIZATION

LIVE PRODUCT 2 DEVELOPMENT


3 OF PRODUCT COST
1 PERFORMANCE
Intelligent Product Design:
Requirements & Software Management
SAP Product Lifecycle Costing
SAP Asset Intelligence Network: Analytics Performance
Benchmarking & Product Manager Overview REQUIREMENTS
MANAGEMENT
Thomas PRODUCT
FLEET ANALYTICS Systems Engineer LIFECYCLE
David COSTING
Product Manager Petra
Controller

PHYSICAL ENTITY

DIGITAL TWIN CUSTOMER SALES


ORDER CREATION
6 Hybris: Configure,
Price & Quote
DETAIL ENGINEERING
4
SAP Engineering Control Center: Mechanic
Electric/Electronics & Software Integration DIGITAL TWIN
5 Asset Intelligence Network: Handover
SAP ENGINEERING Thing Definition* and Onboarding
CONTROL CENTER INTERNET OF
John THINGS
Systems Engineer SAP HYBRIS
Daniel
Thing Engineer Michael
Customer

*Planned Solution

Planned Innovations
DIGITAL PRODUCT LIFECYCLE MANAGEMENT – Vision Demo
REQUIREMENTS-DRIVEN MANAGEMENT & OPTIMIZATION

LIVE PRODUCT 2 DEVELOPMENT


3 OF PRODUCT COST
1 PERFORMANCE
Intelligent Product Design:
Requirements & Software Management
SAP Product Lifecycle Costing
SAP Asset Intelligence Network: Analytics Performance
Benchmarking & Product Manager Overview REQUIREMENTS
MANAGEMENT
Thomas PRODUCT
FLEET ANALYTICS Systems Engineer LIFECYCLE
David COSTING
Product Manager Petra
Controller

PHYSICAL ENTITY

DIGITAL TWIN CUSTOMER SALES


ORDER CREATION
6 Hybris: Configure,
Price & Quote
DETAIL ENGINEERING
4
SAP Engineering Control Center: Mechanic
Electric/Electronics & Software Integration DIGITAL TWIN
5 Asset Intelligence Network: Handover
SAP ENGINEERING Thing Definition and Onboarding
CONTROL CENTER INTERNET OF
John THINGS
Systems Engineer SAP HYBRIS
Daniel
Thing Engineer Michael
Customer

*Planned Solution

Planned Innovations
Greenheck: Designing Products Faster with
SAP® Product Lifecycle Management
Company Top objectives
Greenheck Fan Corporation  Enable global design-anywhere and build-anywhere manufacturing

Headquarters
Schofield, Wisconsin
 Improve data quality by eliminating redundancy in data entry
 Improve global access to product data and shift from 2D to 3D design 30%
Faster design process for
Resolution
Industry  Worked with SAP partner, Cideon Software, to deploy the SAP® Product Lifecycle Management (SAP PLM) new product offerings
Industrial machinery and application to help capture and manage 250,000 drawings and 3D computer-aided designs (CAD)
components  Integrated SAP PLM with AutoCAD and Inventor solutions from Autodesk

Products and Services


Air movement and control
 Deployed the SAP Easy Document Management application to manage over 2 million product documents

Key benefits
20%
Improvement in engineering
equipment  Automated product data entry, improving data security and quality productivity
 Dramatically accelerated the processing of new designs
Employees
2,800
 Streamlined the design-to-manufacturing processes
20%
Fewer engineering
Revenue
changes, thanks to
US$600 million
improvements in data
quality
Website
www.greenheck.com

Partner
Cideon Software “Our manufacturing operation covers Mexico, India, China, and six of the United States. SAP PLM
www.cideon-software.com allowed us to create one source of truth for our product information. It integrates our system so that
anyone using SAP software throughout the company is looking at current and correct data without the
need to synchronize multiple systems.”
Patrice Pergolski, Manager of Engineering Systems, Greenheck Fan Corporation

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ


32248 (14/08) This content is approved by the customer and may not be altered under any circumstances.
28
ebm-papst: Improving Product Development with
SAP® Engineering Control Center ​
Company Objectives
ebm-papst St. Georgen • Replace its legacy system with a modern solution for CAD handling Reduced
GmbH & Co. KG​ • Optimize the entire product development process ​W aiting time thanks to
• Use innovative tools and functionalities within the SAP® Product Lifecycle Management (SAP PLM) application background handling of
Headquarters linked parts
​St. Georgen, Germany Why SAP
• Existing SAP ERP application at customer site
Industry
​Industrial machinery
• SAP Engineering Control Center integration tool, which is integrated with SAP PLM and unifies programs, data, and
processes in product development
Integrated
• Strategy to build on the known SAP software environment and its solution functionalities ​Functionality across
and components
PLM applications
Products and Services Resolution
• Implemented SAP Engineering Control Center for a multi-CAD project with consulting support from CENIT
​Fans and drives
• Went live with productive software in cooperation with CENIT Extensible
Employees ​User interface and custom
​1,750 Future plans functions
• Integrate SAP Engineering Control Center with Inventor 2016
Website • Implement additional functionality of SAP Engineering Control Center, such as manual document conversion
www.ebmpapst.com • Use the latest SAP PLM software functionality

Partner
CENIT
www.cenit.com​

​”SAP Engineering Control Center is a very powerful and user-friendly tool that increases our engineering
efficiency. CENIT is a reliable project partner. In time, quality, and budget, we got top ROI from the service
and the software.”
​Bernd Steinwandel, SAP Application and Process Engineer, ebm-papst St. Georgen GmbH & Co. KG

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 29


© 2016 SAP SE or an SAP affiliate company. All rights reserved. Studio SAP | 45823​ (16​/11) This content is approved by the customer and may not be altered under any circumstances.
GF Automotive: Excelling in Efficiency with the
SAP® Engineering Control Center​ Integration Tool
Company
GF Automotive AG
Objectives
• Ÿ
Streamline and harmonize product development processes and integrate them with CAD systems and processes User-friendly
• Change CAD management from localized handling to a centralized, transparent database Interface with modern functionality
Headquarters • Optimize product development processes by moving from server-based folders to a modern tool similar to a consumer-grade
Schaffhausen, Switzerland • Make full use of the new tool and capabilities within the SAP® Product Lifecycle Management application operating system

Industry Why SAP


Automotive​ • Desire to build on the standards, environment, and capabilities of existing SAP software solutions
• Opportunity to take advantage of the SAP Engineering Control Center integration tool, which is modern, powerful, and
More-efficient
Engineering
Products and Services simple to use
Design, development, and
production of lightweight casting
parts​ for automotive and industrial
Resolution
• Implemented SAP Engineering Control Center to interface with CATIA V5, the company's CAD system Optimized ​
applications • Leveraged the deep solution expertise and implementation support in IT software and business process consulting from Product development
CENIT, from the pilot phase through to the live launch
Employees • Made plans to roll out SAP Engineering Control Center to other locations
5,000
Benefits
Web Site Increased engineering efficiency and an optimized operating environment for product development with an SAP Engineering
www.gfau.com​ Control Center interface to the CAD system

Partner
CENIT AG
www.cenit.com

“We're delighted with the results from implementing SAP Engineering Control Center as the modern
and efficient way to handle our engineering. We're grateful to CENIT for its assistance and advice and
are very excited to take this project to the next phase.”
​Uwe Kruse, CIO, GF Automotive

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 30


© 2016 SAP SE or an SAP affiliate company. All rights reserved. Studio SAP | 46151​ (16​/10​) This content is approved by the customer and may not be altered under any circumstances.
Varian: Improving Training for Product Support Engineering with SAP®
3D Visual Enterprise
Company Top objectives
Varian Medical Systems  Improve the safety, accuracy, and efficiency of training product and product support engineers on
the company’s highly complex oncology and X-ray equipment Visualize
Headquarters  Leverage existing business and proprietary 3D computer-aided design (CAD) data assets from Significant operational
Palo Alto, California SAP® applications as part of an enterprise-wide effort to streamline operational efficiency improvements by visualizing
 Reduce the overall reliance and costs associated with 2D drawings, documentation, printing, and highly complex medical
Industry compliance of a multilingual workforce oncology equipment for training
procedures using the original
High tech
Resolution 3D CAD model for visual
 Translate existing proprietary 3D CAD data from Pro/Engineer and SolidWorks software into accuracy and integrity
Products and Services
Oncology equipment lightweight animated work instructions in 3D PDF and 3D .RH formats using SAP 3D Visual

Employees
Enterprise applications
 Use existing business data from SAP solutions with full integration of the SAP Product Lifecycle Simulate
Management application and SAP 3D Visual Enterprise for a truly end-to-end solution 3D visual work instructions
6,500
 Replace outdated 2D manuals with highly accurate, industry-leading animated visual work providing a visually rich, highly
instructions using SAP 3D Visual Enterprise engaging user experience and
Revenue
interface, effectively achieving
US$2.9 billion Key benefits a similar level of user
 3D visual work instructions that provide a higher level of visual accuracy, understanding, and engagement and retention as a
Website user engagement for product and product support engineers computer gaming environment
www.varian.com  Faster preparation, delivery, and consumption of detailed training material since moving from
paper-based manuals to interactive 3D deliverables
 Approximately 70% faster creation of training materials (from one week to two days)
Simplify
Highly complex 2D technical
drawings and documentation
replaced with a rich, 3D visual
interface, providing a more
“The SAP 3D Visual Enterprise applications has reduced the time to create complex training materials from a natural, simplified experience
week down to two days. It also provides a higher level of engagement and technical understanding for our
product engineering groups. Overall, we are pleased with the business benefits of the SAP 3D Visual
Enterprise applications.”
Snehashish Sarkar, Director, Enterprise Wide IT Engineering Applications, Varian Medical Systems

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 31


31100 (14/11) This content is approved by the customer and may not be altered under any circumstances.
Welch Allyn: Speeding Innovation Process
with SAP® Product Lifecycle Management
Company Top objectives
Welch Allyn  Release product innovations more quickly and efficiently
 Replace legacy software with first-class product lifecycle management
Headquarters
Skaneateles Falls, New York
software for all locations
 Support all plants with standard processes and configurations 50%
Reduction in average days
Industry Resolution to implement a sponsored
Life sciences – medical  Implement the SAP® Product Lifecycle Management application as engineering change request
devices the corporate global environment (ECR) or engineering change
 Support 1,500 employees and 60 CAD engineers and users as well order (ECO)
Products and Services as operations and services enterprise-wide
Medical devices and services  Establish a new governance process for global standardization

Employees
2,600
Key benefits
 Reduction in IT costs
75%
Reduction in resources
 More efficient release of product innovations and improvements required to prepare ECR
Website  Centralized product data management for all locations with one small packages
www.welchallyn.com team
 Standardized training and education for engineering teams worldwide
Partners
Zytalis Inc., Linx/AS LLC,
and LeverX Inc.
 Leveraged the service expertise of Zytalis Inc., Linx/AS LLC, and
LeverX Inc. 1,500
Application users

“Ultimately, we knew that a single enterprise solution would allow


us to become more efficiently connected and accelerate our
global growth and profitability.”
Lauri Ventresca, Director, Global Product Data Management, Welch Allyn

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 32


CMPxxxxx (YY/MM) This content is approved by the customer and may not be altered under any circumstances.
References

PLM Overview
http://service.sap.com/plm

Solution Overview
www.sap.com/products/supply-chain-iot/plm-r-d-engineering.html

Community in SCN
http://scn.sap.com/community/plm

Social
www.youtube.com/user/SAPSolutionMarketing
http://twitter.com/PLMatSAP

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 33


Key Points to Take Home

▪ Live Design is a next generation, intelligent • The definition of PLM must extend to
PLM for a digital world include the whole product lifecycle

▪ Information and availability is immediate • True Product Lifecycle Management must


and gives the customer insights to leverage include the ability to support Live Design
at any moment
• SAP PLM provides the functionality to
▪ Product intelligence will move past simply become your organizations Digital
analytics to predictive suggestions Innovation Platform

▪ SAP PLM is not only integrated to your


organization but connected to the world of
information

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ 34


Thank you.
Dan Bender
Solution Management – R&D
daniel.bender@sap.com
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

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