RISE with SAP for Wholesale Distribution

Accelerating Digitalization

January 2023

PUBLIC

EXTERNAL
Global megatrends and disruptions are reshaping wholesale distribution

Global megatrends Industry trends

Global supply Trusted Circular Increasing Customers Global dynamics Social changes
chains products economy competition and requiring impacting supply resulting in a
new disruptors personalized chains talent crunch
approach

The COVID crisis

Delivering tailor-made solutions at scale and as a service

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Wholesale distributors pursue 5 strategic priorities

Strategic priority Description

 Use value-added services to create new revenue sources, such as:

Offer high-value  Light manufacturing and kitting

services  Ad hoc virtual training
 Provisioning of 3rd party logistics services

 Become the go-to partner for all customer needs, independent of product, location, or time

Deliver anything,  Efficiently manage the right suppliers for a complete assortment backed by infinite inventory
anywhere, anytime  Secure logistics execution capabilities that can meet expectations
 Understand and respond to changing demands to retain customer loyalty

 Engage proactively with business partners to become an influencer of business relationships

Provide end-to-end  Collaborate closely around customer projects and product lifecycles
customer solutions  Secure critical materials, resources, and services contributing to long-term success

 Make existing product-centric business more efficient

Optimize business  Introduce intelligent technologies to streamline operations

operations  Automate tasks for higher productivity and scalability
 Drive efficiency throughout the organization with embedded insights

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SAP point of view: Intelligent wholesale distributors will lead the way

Strategic view Value chain view

CEO CFO CHRO COO Head of supply chain planning Head of procurement Head of supply chain execution Head of marketing and sales Head of service
• Growth and market share • Service levels • Cost of goods sold (COGS) • Total logistics costs • Customer share of wallet • Free-service revenue leakage
• Shareholders and market capitalization • Cash bound in Inventory • Supplier cost recovery • Perfect order rate • Cart conversion ratio • Service delivery cost
• Sustainability and strategic longevity • Days in inventory • Days in inventory • Source-to-deliver cycle time • Incentive program • Customer satisfaction
effectiveness

Enterprise transformation Supply Chain Planning Procurement Supply Chain Execution Marketing and Sales Service

Offer high-value
services The intelligent enterprise

Deliver anything, anytime,

anywhere

Provide end-to-end
customer solutions Real-world Intelligent Flexible value Environmental
awareness decision-making chains awareness
Optimize Business Operations

Best Practices Next Practices Vertical Edge

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Example: Offer high-value services

Wholesale distributors specifically prepare or assemble products based on individual customer needs. For example, a distributor assembles customized hoses for
an industrial company.

BEST PRACTICE: Order to cash

Buy replacement products of various types Store products in a Customer orders Carry out urgent delivery Customer customizes
based on past consumption data. Keep high warehouse until they replacement products, of original products to product according to their
safety buffers to guarantee availability of
critical parts.
are needed. often when machine
malfunctions.
customer. needs. 10%–20%
Increase in customer
satisfaction*
NEXT PRACTICE: Service-focused order to cash

Customer site: Using predictive

maintenance, condition of hydraulic
machines is monitored. Based on the
data, maintenance activities are
triggered. As a result, individual
hydraulic hoses are ordered before
the machine malfunctions.
Distributor: The hose is cut for the
specific machine and fitted with
appropriate connectors, enabled
through real-time prioritization and
capacity planning. Demand-driven
replenishment allows safety stock to
be minimized.
An integrated, holistic solution is
used to perform quality planning
and inspections for the
assembled products. Results
are collected to enable informed
decisions and help ensure
product quality.
Products are delivered to the
customer using a single embedded
29%
platform for transportation
Fewer days in inventory*
management. Goods in transit are
tracked in real time. Customer
feedback is used to validate quality
and identify future opportunities.

© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC *Source: SAP Performance Benchmarking 5
Optimize and transform: SAP’s Intelligent Enterprise architecture

Optimize with Best Practices Transform with Next Practices

A stable and reliable business An agile and flexible platform

foundation to run end-to-end for innovating quickly in the
processes as effectively areas where differentiation
and efficiently as possible drives competitive advantage

BUSINESS NETWORK

ACROSS ALL FUNCTIONS: Design to Operate | Lead to Cash

BUSINESS PROCESS INTELLIGENCE

EXPERIENCE MANAGEMENT

INTELLIGENT SUITE INDUSTRY CLOUD

Transform
SUSTAINABILITY MANAGEMENT

BUSINESS TECHNOLOGY PLATFORM

SAP DATA CENTER OR HYPERSCALER

Intelligent suite from SAP SAP apps Partner apps

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However, our customers are faced with multifaceted challenges that inhibit their
ability to realize the full potential value unlocked by becoming an Intelligent
Enterprise

Too many hands to shake and parties

to hold accountable

Transformation path Multiple and varying SLAs

not clear for application stack
components

Hard to secure Customer acting as the

skilled experts orchestrator, putting solution
stack layers together

Often challenging to create the

value case for change with Diminishing support
outcome-driven process over time to help realize
harmonization anticipated value

Transformations requiring Long time-to-

high up-front costs value period

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 Driving business innovation together

Every enterprise needs to develop new business models to avoid being disrupted, gain efficiencies to fund innovation, and transform
mission-critical systems without business risk. RISE with SAP is the solution.

RISE with SAP is a comprehensive solution with:

 Cloud ERP for every business need
 Industry next practices and extensibility
 Analytics and business process intelligence
 Outcome-driven services from SAP and partners

RISE with SAP is built to fit your needs

RISE with SAP is designed to support your business needs – for your industry, in your geography, for your regulatory requirements
– with SAP responsible for the holistic service-level agreement, cloud operations, and technical support. It includes:

Business process Business platform and Outcome-driven

Cloud ERP Business networks
intelligence analytics services and tools
SAP S/4HANA Cloud Business process SAP Business SAP Business From partners
intelligence starter Technology Platform Network Starter Pack
pack (CPEA credits)

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 Expand business innovation in the wholesale industry

Drive More Business Value

A
Rise to every new business opportunity
Leverage industry best and next practices that
On top of the RISE with SAP offering, you can always create new revenue streams and maximize existing
extend business innovation with industry-specific ones, improve assets efficiency, enhance
solutions productivity, and allow for running sustainably
as new business opportunities and requirements appear.

Cloud ERP
SAP S/4HANA
Cloud
Business process
intelligence
Business process
intelligence starter
pack
Business platform
and analytics
SAP Business
Technology
Platform (CPEA
credits)
Business networks

SAP Business
Network Starter
Pack
Outcome-driven
services and tools
From partners +
Mitigate Risk, Reduce IT Cost, and Accelerate
B Time to Value with Cloud Delivery Capabilities

+
Cloud solutions for Gain capabilities that maximize transformation
wholesale distributors from readiness, simplify consumption through
SAP and partners “as-a-service experience,” help ensure operational
resilience, and reduce overall TCO – from SAP and
partners

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 A B

Delivers differentiation with industry best practices

Supply chain
Supply chain planning Procurement Marketing and sales Service
execution

Required business capabilities

Manage contracts,
Offer high-value services source lists, purchasing Quotation Solution billing
Warehouse management;
information records management; sales
Live and predictive kitting and assembly;
order processing; sales
MRP inventory analytics and
Deliver anything, anytime, monitoring and
Purchase contract control Service contract
anywhere analytics
management management

Provide end-to-end Advanced available to

customer solutions Demand driven MRP promise; sales order Maintenance scheduling
Extended warehouse
management
Purchase order management; advanced
collaboration transportation
Demand driven MRP;
Optimize business management Subscription contracts;
extended service parts Inhouse repair
operations planning
solution billing

SAP S/4HANA, SAP S/4HANA Cloud

SAP Business Network

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 A B

Industry cloud solutions deliver differentiation with industry next practices

and innovations at the vertical edge
Supply chain
Supply chain planning Procurement Marketing and sales Service
execution

Required business capabilities

Offer high-value services Flexible and responsive Procurement analytics – Physical inventory – situation Customer collaboration and In-house repair management
demand management individual supplier evaluation handling co-innovation – plan and schedule repairs

Deliver anything, anytime, Procurement visibility and

Elimination of stock-outs by Advanced ATP – supply Intelligent product and Personalized equipment
anywhere transparency – SAP Analytics
leveraging predictive analytics protection quantity proposal portals
Cloud

Provide end-to-end Multilevel safety stock

Order processing – lean eWM – handling missing Customer order sourcing Recurring services through
optimization – Integration
customer solutions service integration materials (COS) maintenance plan
SPP/IBP
Use of machine learning to
Optimize business Demand sensing and Integrated materials
improve decision- making of Price optimization Predictive maintenance
operations replenishment management
stock planners

SAP Returnable Packaging

Management

SAP Warehouse Insights Zilliant Price IQ

SAP Logistics Business Network, OMS+ Order Management

SAP Subscription Billing
material traceability option and POS Solution

SAP Logistics Business Network, SAP Incentive Administration SAP Asset Strategy and Performance
global track and trace option by Vistex Management

Industry SAP Incentive Administration

by Vistex
SAP Time Management by Kronos
SAP Commerce Marketplace
Management by Mirakl
Fit-Rent Rental Solution

cloud SAP Paybacks and Chargebacks

SAP Customer Order Sourcing
Bloomreach Experience for SAP
SAP Predictive Asset Insights
solutions by Vistex Commerce Cloud

cbs Consignment Stock App for SAP Service Ticket Intelligence, SAP Service
Data services by SPS Reimagine Cold Chain SAP Variant Configuration and Pricing
Solutions Ticketing

The Intelligent Suite – SAP S/4HANA Cloud

SAP Business Technology Platform

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 A B

Enables differentiated business outcomes that maximize shareholder

value through SAP’s industry best and next practices

The top line The bottom line The green line Strategic and transformational
Reduced revenue loss opportunities, Reduced cost of goods sold, increased Optimized environment impact, more Improved customer satisfaction, improved
increased upsell and cross-sell cost recovery, high cash conversion resilient and circular value chain, agility, reduced business and technology
opportunities, increased customer cycle efficiency reduced waste, increased compliance risk, improved decision-making
retention, and improved share of wallet

 10%–20% Reduction in revenue  2%–15% Reduction in days in  3%–10% Reduction in energy cost  15%–40% Improvement in customer
leakage inventory satisfaction
 5%–25% Reduction in carbon
 2%–10% Increase in revenue from  1%–10% Reduction in service and footprint  5%–30% Improvement in on-time delivery
cross-sell/up-sell support cost performance
 1%–20% Reduction in customer  2%–10% Reduction in days sales  10%–20% Increase in employee
churn outstanding engagement
 1%–30% Reduction in revenue loss  1%–5% Reduction in total logistics
due to stock-outs cost
 2%–6% Increase in service revenue  5%–15% Improvement in sourcing
savings on direct spend
 Improvement in share of wallet
 1%–10% Reduction in service and
support cost
 Improvement in order to cash cycle
time

Details on differentiating capabilities enabling the value drivers are available in the appendix

Note: Benefits are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA, SAP S/4HANA Cloud with line-of-business and cloud capabilities. As each enterprise is at a different level of maturity, our recommendation is that you work with SAP to determine the value case
for your enterprise
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 A B

Offers cloud delivery capabilities that enable the journey to the Intelligent
Enterprise – mitigating risk, reducing cost, and accelerating time to value

Transformation “As-a-service” Operational Predictable,

readiness experience resilience lower TCO

Achieve process Access simpler Leverage SAP Gain from future-fit,

excellence* support model reference architecture flexible pricing

Leverage transformation Leverage Improve infrastructure Achieve

tools and services* periodic updates resilience hyperscaler economics

Integrate and Simplify contract Achieve Automate

extend digital core and commercials application-level technical operations
* Not exclusive to cloud
Note: See Appendix for details security
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 Showcases how wholesale distribution customers are “realizing” the value
Impact areas The top line
Reduced revenue loss opportunities,
Key outcomes increased upsell and cross-sell
realized opportunities, increased customer retention,
and improved share of wallet
What are others
accomplishing?
Zespri
“We are embarking on a four-year program to
digitalize our processes and systems, so we
can become more efficient and effective and
strengthen our ability to grow. SAP S/4HANA
Cloud will help us realize our potential and
improve our ability to collect and analyze data
to enable more agile decision-making through
our supply chain.”
David Scullin, Chief Digital Officer, Zespri
International Ltd.
Powell Electronics Inc.
“SAP S/4HANA helped us stop driving in
reverse – we can now look forward, plan, and
execute on the plan.”
Scott Knote, CIO, Powell Electronics Inc.
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
The bottom line
Reduced cost of goods sold, increased cost
recovery, high cash conversion cycle efficiency
Basamh
“Our first quarter results after going live with
SAP S/4HANA was the most successful
season for Basamh. We had record sales in
every product line – showing that all our efforts
paid off. The deployment went well, the
system was stable, and we could clearly see
that we had made the right choice.”
Osama Islam, Group IT Director, Basamh Trading
and Industries Group.
Trusco Nakayama
"Our migration to SAP S/4HANA marks the
beginning of our digital transformation journey.
And thanks to SAP Business Technology
Platform turning business-wide data into
business value, we’re boosting on-time
deliveries and offering new levels of
convenience for our customers.”
Atsushi Kazumi,Director, Digital Strategy
Department, Chief Information Officer, Chief Digital
Officer, Trusco Nakayama CorporationTrusco
The green line
Optimized environment impact, more
resilient and circular value chain, reduced
waste, increased compliance
I-D Foods
“We could never have envisioned how easy it
would be to grow sales without a significant
increase in staffing, at least in our distribution
centers.”
Phillip Gattola, Chief Financial Officer, I-D Foods
MEGA eG
“By deploying embedded extended warehouse
functionality in SAP S/4HANA, we’ve taken the
first step on our journey to achieving a more
streamlined, integrated, and efficient logistics
infrastructure.”
Jens Hungershausen, CIO, MEGA eG
Strategic
Improved customer satisfaction, improved
agility, reduced business and technology
risk, improved decision-making
PROMESA
“PROMESA needed to modernize by finding
ways to improve both the customer experience
and the employee experience.”
Miguel Sotomayor, Technology Manager, Productos
Metalúrgicos S.A.
ITOCHU
“Data analysis is critical to future success.
With SAP HANA and SAP S/4HANA, we can
accumulate large volumes of data and
produce a speedy response, even with
thousands of transaction data files.”
Saburo Kotake, Business Process Innovation
Department, IT Planning Division, ITOCHU
Corporation
14
Building an intelligent enterprise to engage customers and employees

Before: Challenges and opportunities

 Dedication to employee retention and continued business operations despite a worldwide pandemic
 A newly remote workforce that needs the right technology to stay on task and efficient
 A government-mandated pause of all sales operations for 30 days to ensure employee safety
“SAP solutions helped us remain
steadfast in our resolve to keep our
Why SAP workforce employed throughout the
 SAP SuccessFactors solutions to measure KPIs on employees’ health status and productivity COVID-19 pandemic. Today, we’re
 SAP S/4HANA to help employees successfully work from home with only a VPN working safely and successfully from
 SAP Concur solutions to enable the safe and contactless flow of cash home – and seeing great business
results.”
After: Value-driven results Miguel Sotomayor, Technology Manager, Productos Metalúrgicos S.A.
 Retained each employee without any reductions in salary, benefits, or hours

$2.7M 40%
 Created a strategy for business success that empowered all teams to remain productive and support
sales operations at the end of the 30-day sales pause
 Delivered care packages to employees using SAP Concur solutions and Uber to prevent the exchange In revenue for the month of Resumption of business
of physical money May ($700,000 greater than operations in May (10%
anticipated) greater than anticipated)
 Supported customers through their challenges related to inventory as Ecuador’s economy reopened
 Surpassed anticipated May revenue figures by US$700,000 and anticipated business operations by
10%

Productos Metalúrgicos Industry Products and services Employees Revenue Featured solutions
S.A. (Promesa) Wholesale distribution Automotive and hardware 367 US$81.84 million SAP S/4HANA, SAP SuccessFactors,
Guayaquil, Ecuador products and SAP Concur solutions
www.promesa.com.ec

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 Vision-to-value engagement model

1 2 3 4

Initialize the Align on vision and Build the value Plan the path Deliver business
transformation desired outcomes case forward value
Provide our POV on the case Align on business and IT Build the case for change and Create transformation Deliver quick adoption and time to
for change in the context of strategy and get buy-in across identify key initiatives with roadmap and define value, and drive continuous
industry and customer needs the organization expected outcomes deployment plan optimization and innovation

• Provide high-level • Articulate business strategy • Conduct discovery workshops • Agree on target end-state • Transition to delivery and
value cases for and required business to uncover business process enterprise architecture, and customer success team
change based on outcomes to underline digital improvement opportunities transformation roadmap • Address enablement, on-
industry ambition • Explore the art of the possible • Define target operating model, boarding, and change
requirements and • Share Intelligent Enterprise and technical migration and management requirements
with technology innovations to
customer needs deployment strategy
cloud vision, and how it enables achieve desired business • Utilize best practices for
• Socialize the the customer transformation outcomes • Validate outcomes, priorities, deployment and project
Vision-to-Value • Set engagement direction and • Baseline current technology and case for change with governance
approach executive sponsors
expected results landscape - capability and TCO • Support customer success,
• Align on scope, resources and assessment on-going value realization
timeline • Develop the case for change and optimization

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Thank you
Appendix 1: SAP S/4HANA,
SAP S/4HANA Cloud Value
 Wholesale Distribution: SAP S/4HANA, SAP S/4HANA Cloud Capabilities Delivering
Differentiated Business Value
To Drive
Shareholder Value
Revenue Growth Profitability Asset Efficiency Strategic
Focus on Key Increased upsell and cross-sell opportunities, Enabled Intelligent and autonomous Reduced inventory levels Improved customer satisfaction, Reduced TCO,
Outcomes New Revenue Streams processes, Reduced Costs, Increased Improved Agility, Reduced Business &
Sourcing Savings, Improved Vendor Spend Technology Risk, Improved Decision Making,
Compliance, Improved Sales Productivity Reduced emissions from operations
SAP S/4HANA, • 1%–30% Reduction in revenue loss due to stock-  10-20% Improvement in procurement FTE • 2-15% Reduction of days in inventory  5-30% Improvement of on-time delivery
SAP S/4HANA outs productivity • 2-10% Reduction in days sales outstanding performance
Cloud can help • 1%–20% Reduction of customer churn  1-5% Reduction of total logistics cost  15-40% Improvement in customer satisfaction
achieve • 2-10% Increase in revenue from cross-sell/up-sell • 1-10% Reduction of inventory carrying cost  5-25% Reduction of carbon footprint
• 2-6% Increase in service revenue • 5-15% Improvement of sourcing savings on
direct spend
 10-25% Improvement in external partner
compliance
 1-10% Reduction in service and support cost

Offer high-value Logistics Services

services
Strategic Priorities and Key Capabilities

Purchase Contract Management

Deliver anything,
anywhere, Substitution Management
Invoice Collaboration Invoice Collaboration
anytime
Purchase Order Collaboration Purchase Order Collaboration

Purchasing Rebate Management

© 2020 SAP SE or an SAP affiliate company. All rights reserved.

Service Purchasing and Recording

Sales Order Management and Processing

Provide end-to-
Subscription Order Management
end customer
Real-Time Reporting and Monitoring
solutions
Classification and Segmentation
Supplier Evaluation

Optimize
Inventory Analytics and Control
business
operations

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*Benefits are based on results from early adopters of SAP S/4HANA, SAP S/4HANA Cloud or are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA, SAP S/4HANA Cloud with line-of-business and cloud capabilities.
As each enterprise is at a different level of maturity, our recommendation is that you work with SAP to determine the value proposition for your enterprise.
Primary Value Drivers improved In Wholesale Distribution by SAP solutions
Impact Areas Revenue Growth
Increased upsell and cross-sell opportunities, Enabled intelligent and autonomous process,
Key Outcomes Realized Increased portfolio of Energy Services,
Predictable and new Revenue Streams
 10%–20% Reduction in revenue
leakage
Primary  2%–10% Increase in revenue from
cross-sell/up-sell
Value Drivers  1%–20% Reduction in customer
churn
 1%–30% Reduction in revenue loss
due to stock-outs
 2%–6% Increase in service revenue
 Improvement in share of wallet
 Increase revenue growth with better
Other Key product personalization
Value Drivers  Reduce time to market for new
products
 Reduce customer churn
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Profitability Asset Efficiency Strategic-Other
High cash conversion cycle efficiency, Improved customer satisfaction, Reduced TCO,
Reduced Costs, Optimized R&D Spend Improved uptime and asset utilization Improved Agility, Reduced Business & Technology
Risk, Improved Decision Making, Increased
Compliance, Reduced emissions from operations
 2%–15% Reduction in days in  3%–10% Reduction in energy cost  15%–40% Improvement in customer
inventory  5%–25% Reduction in carbon satisfaction
 1%–10% Reduction in service and footprint  5%–30% Improvement in on-time
support cost delivery performance
 2%–10% Reduction in days sales  10%–20% Increase in employee
outstanding engagement
 1%–5% Reduction in total logistics
cost
 5%–15% Improvement in sourcing
savings on direct spend
 1%–10% Reduction in service and
support cost
 Improvement in order to cash cycle
time
 Improve sourcing savings on indirect • Reduce un-planned downtime or  Increase employee engagement
spend outages  Improve overall equipment
 Reduce finance cost • Improve days payable outstanding effectiveness
 Reduce audit cost  Increase sales forecast accuracy
 Optimize research and development  Reduce days to close annual books
expense
 Reduce sales cost
 Improve sourcing savings on direct
spend
** based on (a) Contribution to the Impact Areas (b) Solution Business Capabilities provided by SAP S/4HANA, SAP S/4HANA Cloud (with a priority 20
on Incremental Capabilities as compared to ECC (c) SAP’s view on the Primary Value Drivers that drives Strategic Priorities of this industry
Appendix 2: Value Framework
 Offers cloud delivery capabilities that enable the journey to the Intelligent
Enterprise - mitigating risk, reducing cost and accelerating time to value

Transformation “As-a-Service” Operational Predictable,

Readiness Experience Resilience Lower TCO

Achieve Process Access Simpler Leverage SAP Gain from Future-Fit,

Excellence* Support Model Reference Architecture Flexible Pricing

Leverage Transformation Leverage Improve Infrastructure Achieve

Tools & Services* Periodic Updates Resilience Hyperscaler Economics

Integrate and Extend Digital Simplify Contract Achieve Application Automate

Core to Accelerate Innovation & Commercials Level Security Technical Operations

* Not exclusive to cloud

© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 22
 “As-a-Service” Operational Predictable,
Transformation Readiness Resilience
Experience Lower TCO

Improve transformation readiness and accelerate innovation

10 – 15% 2 Improved process efficiency

Achieve Process With BPI, identify process bottlenecks,
Excellence design to-be processes, simulate and
achieve significant business improvements 50 – 80% 3 Less cost to manage customizations

Reduce time-to-value for B2B network benefits

10 – 15% 4 Sourcing savings (Ariba Network)

Leverage transformation Reduce complexity of customizations and
tools & services maximize use of standard functionality using Up-to 3% 4 Lower asset maintenance cost (AIN)
SAP tools and services
Up-to 5% 4 Lower logistics cost (LBN)

Up-to 15% 4 Lower days In inventory (LBN)

Integrate and Extend Optimize and extend processes that
Digital Core to accelerate cloud innovations with Business Faster time to market for innovations
Accelerate Innovation1 Technology Platform and Business Networks
within and beyond enterprise boundaries Improved employee engagement with task automation
1
Other LOB bundlers to be introduced across 2021, starting with HXM
2
IDC survey showed 10-15% drop in operating costs
3
SAP customer case studies and experience
4
Improvement range based on SAP’s benchmarking with a model company of $2B in Revenue & 15% margin. Only applies to assets/spend/logistics which flow through the respective SAP systems
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 23
 Transformation “As-a-Service” Operational Predictable,
“As-a-Service” Resilience
Readiness Experience Lower TCO
Experience

Simplify software consumption and realize a better SaaS experience

Access Simpler One SLA for the full application stack,

Support Model simpler governance and faster issue
20 – 30% 1 Reduced governance costs
resolution

Up-to 98% 2
Reduced downtime

Leverage Periodic SAP managed support packages and

Updates patches. One technical upgrade p.a. for Up-to 3% 3 Operational cost
private cloud and quarterly for public cloud
Up-to 5% 3 Administrative cost

Up-to 1.9x 3 # of processes with visibility

Simplify Contracts One commercial offer and contract for RISE
& Commercials with SAP. SAP and services partner work in
Up-to 7% 3 Complete + On-time shipments
tandem leveraging each partner’s unique
strengths
1
SAP customer case studies and experience
2
Study by IDC on SAP S/4HANA Cloud, private edition
3
The Value of Upgrading ERP: Maintaining Modern Technology (by Aberdeen Group)
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 Transformation “As-a-Service” Operational
Operational Predictable,
Readiness Experience Resilience
Resilience Lower TCO

Improve operational resilience running on hyperscale infrastructure

Leverage SAP Proprietary SAP reference architecture to Reduced infrastructure

30 - 60% 1
Reference ensure optimal performance and platform overprovisioning
Architecture independence across multi-cloud ecosystem

Up-to 98% 2 Reduced Downtime

Improve Choice of hyperscaler to ensure highly
Infrastructure resilient, global, secure and scalable Cloud
Resilience infrastructure 2.8%
Reduced cybersecurity value-at-risk
of Revenue 3

Reduced SAP application delivery time

Achieve Reduce cybersecurity risk and high overhead
Application-Level costs to address cybersecurity, privacy and
Reduced risk of penalties (e.g. due to GDPR violations)
Security ensure business continuity

1
Bain & Co. - Optimize when migrating to the Cloud
2
IDC TCO study on SAP S/4HANA Cloud
3
Accenture – The cost of cybercrime
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 Transformation “As-a-Service” Operational Predictable,
Predictable,
Readiness Experience Resilience Lower TCO
Lower TCO

Achieve predictable, lower TCO with pricing & infrastructure operations optimization

Gain from Future- Flexible subscription pricing, better aligned

Reduced TCO
Fit, with future requirements based on simpler
Flexible Pricing metrics (e.g. Full Usage Equivalent)  Reduce IT governance costs
 Reduce infrastructure costs
20% 1
 Reduce IT operational costs
Achieve Reduce infrastructure costs, while  Reduce shelf-ware
Hyperscale leapfrogging complexity and learning curve  Improve IT user productivity
Economics of using a public IaaS/PaaS platform

Reduced 3rd party software & support fees

Automate Better service availability and cost efficient

Technical Operations operations leveraging SAP best practice Faster time-to-market for new capabilities & applications
cloud operations

1
Study by IDC on SAP S/4HANA Cloud, private edition
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Appendix 3: RISE Framework - Partners
 Business transformation as a service requires our ecosystem
Preconfigured applications and solutions by
partners as repeatable accelerators

Industry cloud
solution from SAP

SAP S/4HANA Cloud, public edition

Partner Recurring
innovations and SAP S/4HANA Cloud, private edition
application
integrations management
built on SAP services by
BTP partners
Industry solution
SAP Business Partner app 1 from SAP
Technology Flexibility
Platform to choose
infrastructure

+
(SAP BTP) Premier value provider
RISE with
SAP for
Guided industry
SAP journey
Business Business Partner-built
Network Simplified process industry
Starter engagement intelligence Partner app 2 integrations,
Pack (BPI) accelerators,
content, and
SAP Business Business data
Network advisory services
activation by partners
services by that leverage
partners BPI from SAP
Custom code analyzer, Partner-defined industry reference
SAP Readiness Check, SAP Cloud ALM, architecture – solutioning beyond
SAP Learning Hub SAP

Rapid migration and implementation

services by partners
= Ecosystem value add

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