mySAP PLM

Driving Product and Process Innovation through Product Lifecycle Management

Colin Page SAP Africa PSO

Agenda

What Matters ...

The mySAP PLM solution

Benefits of mySAP PLM

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Corporate Success has Three Pillars

The Business Value Disciplines* Focus on relationship benefits and long term customer value Customer Intimacy (CRM)

Still True in the New, New Economy: Successful businesses clearly excelled in one of the disciplines and had to be at least industry standard or better in the other two disciplines.

Customer expectations are constantly evolving they now expect excellence along all three Product Leadership dimensions.
(PLM) Focus on providing leading edge products tailored to customer needs at lowest costs

Operational Excellence (SCM) Focus on production and efficient management of the extended supply chain

* Treacy and Wiersema, 1995

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What Matters
Innovation
Innovative companies are more successful
Technology plus market innovation counts Focus on their strengths Work in global virtual teams

Market
Successful companies have closer contact to the market and to their customers Market leaders bring new products faster to market Fast market presence is driven by rapid production ramp-up and fast product positioning

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What Does This Mean for mySAP PLM

Integrated processes drive innovation and fast market positioning
mySAP Product Lifecycle Management Provides a Complete Solution

Design

Production, Distribution

Aftermarket Service

Customer Relationship Management

Supply Chain Management

Product Lifecycle Management

First idea Start of production End of production Obsolescence of product/part

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Agenda

What Matters ...

The mySAP PLM solution

Benefits of mySAP PLM

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What Does This Mean for mySAP PLM

Global virtual teams for new product development and innovation are based on project management, knowledge management, and collaboration

mySAP PLM web-centric portfolio management, development projects, and collaboration folders

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What Does This Mean for mySAP PLM

Open, people-centric integration with mySAP PLM portals for engineers, project managers, and asset operators

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What Does This Mean for mySAP PLM

Global teams need consistent master data in a heterogeneous environment iPPE integrated product and process engineering
Feature and Feature and Requirement Requirement Structure Structure Functional Functional Structure Structure Concept and Concept and Design Design Structure Structure Product Product Structure Structure

First Product Idea

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Start of Production

What Does This Mean for mySAP PLM

Global teams need consistent master data in a heterogeneous environment Consistent master data in a heterogenous environment
XXML ML I Int Adnteer Ad a r fa f appteacce te r e / / r

s es ss snn r iie Bu ccoo us t t r APB ne AP onn e SS Co n C

EDI/File XML/HTTP
XM

mySAP PLM

Non-SAP Non-SAP System System

ALE

ALE R/3 R/3 Enterprise Enterprise

R/3 R/3 4.0B --4.6C 4.0B 4.6C

S CSAAP B CoonP B u nnne uss. eccto . to r r

L/H TT P

R/3 R/3 Enterprise Enterprise

mySAP PLM data replication

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mySAP Product Lifecycle Management

PLM Solution Map, Edition 2002

Life-Cycle Data Management Asset Life-Cycle Management Program & Project Management Life-Cycle Collaboration Quality Management Environment, Health & Safety
Document Management Technical Assets Management Product Structure Management Preventive Maintenance Integration Change & Configuration Management Work Order Cycle

Work Clearance Management

Strategic Program Management Design Collaboration Collaborative Project Management

Life-Cycle Profitability Analysis Quality Collaboration MRO Supplier Collaboration

Project Management Enterprise Portal Content

PLM Analytics

Audit Management Product Safety / Hazardous Substance Management Dangerous Goods Management

Quality Control Industrial Hygiene & Safety

Quality Improvement

Waste Management

Occupational Health

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Agenda

What Matters ...

The mySAP PLM solution

Benefits of mySAP PLM

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Turning New Ideas into New Revenues

mySAP PLM Helps to Increase Revenues

Increased revenues

Develop more innovative products and explore new market opportunities by exchanging ideas quicker Capture higher market share by reducing time to market and time to volume along with a close integration to supply chain management and procurement Make the right decisions by sharing up-to-date information with all people involved in product development, procurement, production, and maintenance

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ROI for collaboration

ROI 95% Decrease in unproductive time due to meetings

Meeting hours per year (30 engineers x 2 hours per 3120 hours week) Cost of unproductive meeting time (3120 x $90 $280,800 per hour)

ROI 5% Additional available capacity for orders

Projects shipped per year Average selling price per project Average profit margin per project 200 $1.8m 20%

Increased profit ($280,800x95%) $266,760

Increased revenue (200 x 5%) x ($1.8m x 20%) $3,600,000

ROI 80 % decrease in engineering errors due to miscommunication

material cost/error $500 4 hours assembly labor/error $300 Total cost/year engineering errors $1,248,000

Total Collaboration ROI

Decrease in meetings Less errors due to improved communication Elimination of hardcopy drawings Increased capacity due to faster time to market $ 266,760 $ 998,400 $ 46,800

Total cost savings/increased profit ($1,248,000x80%)$998,400

$ 3,600,000

Total

$ 4,911,960

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mySAP PLM Positively Effects Your Bottom Line

mySAP PLM Decreases the Cost Baseline

Reduced costs

Achieve lower cost-to-market by managing the cost of changes and evaluating the progress of projects across product lines Reduce maintenance costs and increase equipment availability by providing up-to-date as-built and as-maintained information to maintenance and service Reduce total-cost-of-ownership through open infrastructure that provides integration into CAD, SCM, SRM, CRM, and ERP

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Customer Value of Document Management

50% reduced costs for administration of archives 80% reduced costs for paper-based reproduction 80% reduced time for document search and access 50% reduced time for approval and change processes
Source: Siemens Medical Equipment

90% reduced time for (complex) document search and access 70% reduced time for approval and change processes
Source: Beiersdorf

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mySAP PLM in a Nutshell

One Minute Elevator Pitch

Engineering & Design View

New Product Development Production Ramp up & Product Change Mgmt. Maintenance Management

mySAP PLM for Manufacturer

Shipment, Operations, Service & Maintenance

mySAP PLM for Operator

Asset Investment

Asset Operation

Asset Replacement

Operator View

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Every Company Needs mySAP PLM

Business Needs Call for Product Lifecycle Management (PLM)

Drive inter- and intracompany collaboration

Schindler: Distributes product information globally
environment, it's essential that our In our highly variable productiontransfer engineering and customer employees be able to smoothly order updates across the entire enterprise.
(Source: Schindler, Switzerland)

Osram: Several divisions, one product

opportunity to leverage advanced With mySAP PLM we now have thethat allow for collaborative product development capabilities engineering across different divisions within the company.
(Source: Osram, Germany)

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mySAP PLM is a Must Not a Nice to Have

Business Needs Call for Product Lifecycle Management (PLM)

Keep projects on budget and on time

Brose: Monitors projects from kick off to production

mySAP PLM [] enables Brose to control all expenditures and activities involved in getting a series product to the start of
production (SOP) stage.
(Source: Brose, Germany)

Ensure legal compliance

Ashland: Manages environment, health and safety
SAP EH&S is a flexible, user-friendly and facilitates compliance with the regulationsreliable product that and legal requirements that govern our day-to-day operations.
(Source: Ashland, United States)

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PLM Serves Many Industries

Business Needs Call for Product Life Cycle Management (PLM)

Easy access for occasional users

BASF: Better serve our users

mySAP PLM provides us with the ability to combine strong

asset life-cycle management capabilities with a state-of-the-art enterprise portal. The combination of business content and enterprise portal technology provides an ease of use that allows us to broaden the user community of our mySAP PLM soluton to better serve occasional users.
(Source: BASF, Germany)

Allow for asset and maintenance management

Securit: Excel at maintenance operations
in asset downtimes from 5.0% to 3.1% We achieved a reductionmalfunction time of 40%. This helped to in 5 months - a reduction in increase production levels by 10%.
(Source: Securit Saint Gobain, France)

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Differentiators That Matter to Customers

Reasons Why Companies Pick mySAP PLM

Fosters value networks

Collaboration platform SCM, CRM, SRM, and ERP integration

Holistic, end-to-end process view

Product development Production ramp-up and product change management Maintenance management

Merges technical and business worlds

Independent of CAD system Information distribution to manufacturing

Supports decision making

PLM analytics Enterprise portals

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mySAP PLM enables your company to get the right product to market at the right time, at the right cost resulting in increased profitability and competitive advantage.

SAP AG 2001, A Business View of SAP AG 2002, Marty Homlish 22 mySAP PLM / 22

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