INDUSTRY 4.0: FROM THINGS TO OUTCOMES Dr. Tanja Rueckert EVP IoT & Customer Innovation to Outcomes

Connecting the unconnected & digitizing the analog from Things Connecting the unconnected & digitizing the analog 3D Printing reduces the repair times for around 90% 44 zettabytes of data 80% of eliminated, reinvented process <1% of IoT data is being used 50b connected devices 80% lower prices of wireless tech. vs. 4 years ago *Source: Gartner – “Top 10 Tech Trends for 2013” – 2012, Economist Intelligence Unit – ”The Rise of the Machines”, IDC FutureScape: Worldwide Internet of Things 2015 Predictions ** McKinsey – Unlocking the value of the Internet of Things Report, June 2015 to Outcomes

from Things Connected Manufacturing, connecting production systems to core business processes with an end-to-end visibility Challenges Value Cloud Platform Operations in Silos Quality Requirements Overall Effectiveness 65% Delivery Time 6h SAP Connected Manufacturing Supply Chain Compliance Traceability Manual Reporting Cost Reductions 7-12% Infinite Insights Plant Connectivity Smart Data Streaming Augmented Reality Non-analytical Decisions IT-OT Convergence Product Network Process Optimization S/4 HANA MII Manufacturing Execution Suite to Outcomes

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from Things Industry 4.0 solves challenges of today using innovative internet and communication technologies Key Enablers Comprehensive Integration E2E Performance Management E2E Human Factor Support E2E Lot Size 1 Machine Data & Business Data Analytics Compelling Human Support From E2E Individualized Product Tracking Integrated Business Processes Integrated Business Processes Insight to Action in Near Real Time Intuitive and Efficient UIs to Outcomes

from Things Assets Intelligence network, the Facebook of machines bringing together business partners Challenges Value OEMs & Service Providers Revenue Stream Cost Savings Lack of Asset Information Outdated Work Pay on Performance Asset Lifecycle Global Inventory Work Scheduling Equipment History Benchmarking Lease Management No Common Definition Customer Satisfaction Lack of Collaboration Insight on Customer Base Operators Provider/ Operator Network Secure Infrastructure Global Equipment Registry Shared Model Database No Standardized Model Information Silos Sharing of Work Activities Establish Channel to Operators to Outcomes

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from Things SAP solutions encompass the complete vertical technology stack and horizontal leading applications Augmented Reality Moving Assets Predictive Maintenance Smart Factory Energy Management Logistics Hub Device management platform Application enablement platform Industry solutions Asset Intelligence Network Value Chain Smart Data Connectivity Intelligent Assets to Outcomes

from Things We are accelerating the pace of industry 4.0, while it is key to think E2E in the solutions and build trust RAPID INNOVATION ENOURMOUS DATA GLOBAL ECONOMY COMPLEX VALUE CHAINS SCALING TECHNOLOGY SECURITY QUESTIONS PRIVACY TOPICS to Outcomes

Future of Manufacturing fosters a coherent stakeholder collaboration from Things Future of Manufacturing fosters a coherent stakeholder collaboration Standardization & Government engagement Manufacturers business networks Industry 4.0 & IoT Digital Assets Technology solution providers to Outcomes

REALIZE YOUR IoT OPPORUNTIY from Things REALIZE YOUR IoT OPPORUNTIY Learn more about how SAP IoT can help you to get from things to outcomes Visit: http://go.sap.com/solution/internet-of-things.html to Outcomes