SAP Industry Value Stories

Automotive and ERP in the

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Experience Economy

1 / 12
 Key Business Drivers in the
Automotive Industry

30%
STRATEGIC PRIORITIES

Customer Centricity
•• Focus on the end customer
•• Capture feedback across the end-
of manufacturers are predicted to use innova- to-end customer journey
tion marketplaces by 2022, raising margins 5% •• Responsibility of all departments

“Brand management around

products and services is becoming

90%
of large enterprises will generate revenue from
Serving the Segment of One
•• Provide solutions that fit the
needs of a single customer
•• Capture customer require-
ments and enable mass
the primary marketing focus
for the connected OEM.
data as a service by 2020 customization
OEM systems must adapt to
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managing data directly from

>50% Digital Smart Products product performance to enable

•• Drive differentiation and speci-
ficity from digital capabilities
new service and business models.”
•• Deliver products with self
of OEMs are investing in IoT to support awareness of technical health Simon Ellis, Program Vice President, IDC
connected service and operational status

2 / 12
 New Routes to
Consumers Are Driving
New Business Models Spares and Service Direct to Consumer

Routes to market for automotive industry

companies have proliferated, leading to the
emergence of new business models. They aim
to take advantage of opportunities for sustained,
value-added relationships with consumers seeking Manufacturer
“outcomes” instead of just “products.” It’s all about
building long-term relationships with consumers Consumer
based on a deep, frequently real-time
understanding of their evolving wants and needs.

Dealer Network Industrial

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From … To …

Selling products Delivering outcomes 

Static, one-size-fits-all experience Dynamic, highly personalized experience
Reactive, push-based marketing Value-added recommendations
Limited analytical capabilities Real- and full-time analytics

3 / 12
 Traditional Processes
Are No Longer Good
Enough
Example: Enabling
Subscription Billing
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4 / 12
 Business model definition Sales and contracting Usage tracking Billing

Challenges Occurs manually, outside Sales and contracting must Manual collection of usage Manual resource
of ERP, limited follow-up, be re-architected or built data or highly resource- assignment, multiple
siloed planning from scratch, disjointed intensive IoT integration documentation sources per
customer-facing processes asset, no optimization of
cost, risk, and performance
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Outcomes Difficult rollout and Slower time to Delays and errors in Dissatisfied
execution of new market, frustrated usage data customer
subscription model customers

5 / 12
 Enabling Better
Customer Experiences
in Automotive
Example: Intelligent
Subscription Billing
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6 / 12
 Key
capabilities
delivered Business model definition Sales and contracting Usage tracking Billing

•• Integrated business model design
•• Flexible new product/service
design capability
•• Intelligent simulation of pricing
conditions
•• Support for digital offerings
•• Just-in-time triggering of
maintenance orders
•• Intelligent resource identification
and assignment
•• Real-time analysis of asset health
•• Easy integration with IoT
networks
•• Single platform for transactions
and analytics
•• Elimination of manual data entry
•• Real-time tracking
•• Built-in support for use-based
billing
•• Integrated billing with
individualized contracts
•• Automated invoice generation
•• Consolidated billing
•• Intelligent line-item matching

Intelligent Support for subscription or usage- Integrated processes improve Automated usage data collection Simplified billing with customer-

technology based models increases revenue customer centricity of sales increases accuracy and customer specific terms increases retention
engagements satisfaction
outcomes
© 2019 SAP SE or an SAP affiliate company. All rights reserved.

5%–10% 10% 46% 10%–20%

SAP S/4HANA®
customer
decrease in operations improvement in sales fewer customer com- increase in customer
achieve analysis and reporting order accuracy plaints with real-time satisfaction
billing and invoicing

7 / 12
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Examples
Are Doing Today
What Industry Leaders

8 / 12
 What Industry Leaders Are Doing Today
Indus Motor Company

INDUSTRY EMPLOYEES REGION

EMEA,
Automotive 2,300 Pakistan

Challenges
•• Needed to gain competitive edge with improved
product and service quality
•• Implement a complete end-to-end solution,
enabling sales forecasts from dealerships
to flow efficiently to primary suppliers and
manufacturers.
© 2019 SAP SE or an SAP affiliate company. All rights reserved.
SAP S/4HANA Innovations Benefits
Indus Motor Company deployed the •• Reduced supply chain risks and unplanned
SAP S/4HANA® Enterprise Management solution downtime
with IBM and enabled materials management, •• Maximized manufacturing capacity and
planning production, and better finance controls. minimized costs
•• 95% faster material requirements planning
•• 10% improvement in sales order accuracy
“One of the things that im-
pressed us most about SAP
S/4HANA was its built-in,
real-time analytics ca-
pabilities. Thanks to SAP
S/4HANA, we are achieving

•• Gain real-time insights into data to improve •• 20% reduction in defects per unit
customer service, ensure timely delivery of •• Real-time tracking of customer deliveries,
products helping ensure compliance with service-level
agreements
•• Lower risk of supply chain disruption
•• Faster manufacturing turnaround time to meet
demands
the digital transformation
that will help us strength-
en our competitiveness in a
fast-moving marketplace.”
Faizan Mustafa, CIO, Indus Motor Company Ltd

9 / 12
 What Industry Leaders Are Doing Today
National Electric Vehicle Sweden

INDUSTRY EMPLOYEES REGION

EMEA,
Automotive 700 Sweden

Challenges SAP S/4HANA Innovations Benefits “Understanding all aspects of

National Electric Vehicle Sweden needed a
robust order-to-delivery chain to support the
manufacturing of electric cars in a new China
plant while enabling the car body production in
the existing Sweden plant. At the same time, the
company was looking to modernize IT for financials
© 2019 SAP SE or an SAP affiliate company. All rights reserved.
National Electric Vehicle Sweden implemented •• Established a robust IT platform to support the cost of development from
SAP S/4HANA and created a business-processes global expansion
blueprint for the order-to-delivery chain across •• Unified group-wide business processes end to end is crucial, and
plants globally based on HPE’s proven templates •• Modern order-to-delivery process chain SAP S/4HANA offers many
for SAP for automotive solutions. It integrated •• Capability with unified group-wide business
the legacy system and SAP software to enable a processes aligned to NEVS advantages we can capitalize
on. After all, being in tune

and procurement in both countries so it would be
able to create financial and operational visibility
and transparency throughout the company, with
integrated systems covering the end-to-end
process from incoming order to delivery of the car.
quick start of production in the Sweden plant and
leverage SAP Fiori® apps for simple transactions
like approvals.
•• Business plans and strategic direction
•• Integration of new Chinese plant with full
performance transparency
with the marketplace – and
adjusting your cost base
accordingly – is invaluable.”
Conny Janson, Vice President IS/IT,
National Electric Vehicle Sweden AB

10 / 12
 What Industry Leaders Are Doing Today
Karma Automotive
INDUSTRY
Automotive
As a young start-up, Karma
Automotive manufactures cars
that are rolling pieces of art
powered by next-generation
hybrid technology. The company
is accelerating its response to
market dynamics with a solid
© 2019 SAP SE or an SAP affiliate company. All rights reserved.
foundation of real-time insight,
empowering every employee to
make the right decision every
time.
. problems, take photos, and
EMPLOYEES
600
Challenges
•• Needed a single, always-on
internal platform to support
company-wide decision
making
•• Demanded greater visibility
into the customer experience
and vehicle performance
•• Required a dealer platform that
simplifies transactions and
customer engagement
REGION
NA,
United States
SAP S/4HANA Innovations
Karma Automotive established
one integrated platform enabled
by SAP S/4HANA and a suite
of cloud solutions. They use
preconfigured industry best
practices to bring new business
models to market quickly and
continue to co-innovate with
SAP in areas such as machine
learning and the Internet of
Things.
11 / 12
Benefits “From order through delivery,
•• Real-time access information we have one system of
for improved decision making
•• One platform for a single record, one version of the
version of the truth truth, and one platform to
•• Simplified interactions with
customers and the dealer ensure 100% customer
satisfaction.”
network
•• Enhanced quality control
through a mobile user Mikael Elley, Vice President and CIO, Karma
interface, which helps Automotive
inspectors document
recommend solutions and
gives the business and its
dealers real-time visibility
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