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Transform Asset Management

with SAP S/4HANA®

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White Paper Background
and Key Definitions
The information outlined below is helpful to understand the contents of
this value proposition white paper. It gives clear details on the objective
and scope of the paper. Key definitions are also provided for select sections
of the paper to provide further clarification.

DELIVERABLE OBJECTIVE With the value proposition section, all quantified


Provides information on the value in moving from benefits are conservative estimated improvement
an ERP on a traditional database to SAP S/4HANA® ranges tied to the top value drivers. They are based
and cloud and line-of-business (LoB) solutions on early adopters or new developments/enhancements
of SAP S/4HANA + LoB and cloud enhancements that
can drive value. Keep in mind that these should be used
KEY DEFINITIONS
as a guide. We recommend working together to assess
Within the process and sub-process deep-dives, there is your current maturity and the value of moving to
detailed content in table format articulating the following: SAP S/4HANA in order to develop a personalized
Pain points business case.
Represents major customer business and IT challenges
Current state with ERP on traditional database
Represents the ERP capabilities that are available Detailed road map available on SAP.com
on a traditional database (Customer Login Required)

SAP S/4HANA capabilities This document and SAP’s strategy and possible future
developments are subject to change and may be changed
Represents the capabilities shipped with the latest
by SAP at any time for any reason without notice. This
release of SAP S/4HANA
document is provided without a warranty of any kind,
Cloud/LoB + SAP S/4HANA capabilities either express or implied, included but not limited to,
Represents all other solutions that can be integrated with the implied warranties of merchantability, fitness for
SAP S/4HANA and provide business value. For example, a particular purpose, or non-infringement.
SAP S/4HANA + the SAP Integrated Business Planning
solution, or SAP S/4HANA + the SAP Manufacturing
Integration and Intelligence (SAP MII) application, etc.
These solutions are not embedded in SAP S/4HANA,
but integration scenarios exist for these
Planned innovations and future direction
Represents new functionalities planned for future releases
of SAP S/4HANA, or new integration possibilities planned
for SAP S/4HANA
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Agenda

SAP S/4HANA Asset Management Overview 4

Asset Operations and Maintenance 7

Environment, Health, and Safety 10

Asset Network 11

Value Proposition 14

Customer References 15

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SAP S/4HANA Asset Management Overview

TRANSFORM ASSET MANAGEMENT ON SAP S/4HANA

With today’s dynamic marketplace and challenging economic conditions,


organizations are looking at ways to achieve greater operational excellence.
They need access to accurate, real-time information about their enterprise.
They are also looking at acquiring capabilities to predict potential operational
problems before they occur, and want to empower their workforce with all
the information required to run their operational processes without issues.
In short, they want to be immediate, intelligent, and integrated.

With SAP S/4HANA, organizations can build a foundation With SAP S/4HANA, organizations can systematically
for operational excellence with asset management and reduce risk and improve worker safety with one common
environment, health, and safety (EH&S) capabilities. view of process risks related to workers, assets, or
Since the release of the SAP S/4HANA Enterprise environment. In addition, improved analytics and
Management solution in November 2015, the wave predictive models enable organizations to analyze
of digital business-enabling innovation in our next large data sets in order to improve EH&S performance.
generation business suite has grown materially
SAP S/4HANA is a digital core that fully integrates
throughout the enterprise, across finance, manufacturing,
with solutions that are built on the SAP HANA® Cloud
procurement, supply chain, and asset management.
Platform, e.g., SAP Asset Intelligence Network or the
The SAP S/4HANA Asset Management solution allows SAP Predictive Maintenance and Service solution,
organizations to manage their asset-related cost, risk, cloud edition. They also enable an organization to access
and performance holistically. It enables them to focus standardized, up-to-date master data and performance
on the most efficient ways to balance operating information about equipment. With the ability to share
expenditures (OPEX) and capital expenditures this information and insight within the ecosystem and
(CAPEX) and focus on asset lifecycle costs. enable efficient collaboration among business partners,
the solution can help asset operators minimize capital
Organizations can implement proactive maintenance
investments and achieve higher asset availability,
strategies that are enriched with the analysis of real-time
while at the same time enabling asset manufacturers
data, as well as predictive and other forecasting methods,
to centrally manage all information and build installed
to increase the return on assets and reduce unplanned
base knowledge.
downtimes. The solution helps in bridging the operational
silos by integrating processes from top floor to shop
floor, as well as managing the complete asset lifecycle.

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SAP S/4HANA Asset Management Overview

SAP ASSET MANAGEMENT CAPABILITIES

Outlined below are the primary capabilities for asset management where
value can be achieved through SAP S/4HANA + SAP cloud and LoB solutions.

Asset Operations Environment, Health,


Asset Network
and Maintenance and Safety

• Asset strategy and performance • I ncident management • Asset information collaboration*


• Maintenance planning and scheduling •H
 ealth and safety management • Asset information governance
• Maintenance execution •E
 nvironment management (planned) • Predictive maintenance and service*
• Mobile asset management* •M
 anagement of change*
•M
 aintenance safety and permit to work
(planned)

*
Additional products integrating with SAP S/4HANA

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SAP S/4HANA Asset Management Overview

SAP S/4HANA ASSET MANAGEMENT VALUE PROPOSITION SUMMARY

SAP S/4HANA Asset Management enables organizations to efficiently


manage the entire asset lifecycle with real-time visibility into asset
performance using powerful analytics. The solution makes it easier
to optimize asset usage, shrink costs, lower risks, better manage
capital expenditures, and ultimately maximize return on assets.

• Provides real-time insights into asset performance •E


 nables access to one common view on process
data for timely, relevant decisions risks related to workers, assets, or the environment
• Enables use of prediction, simulation, and analysis •F
 acilitates the use of analysis, prediction, and
to evaluate asset behavior, plan budgets, and forecast simulation, to achieve greater insight, e.g.,
maintenance cost converting incident reporting and risk assessments
• Provides a common view of information technology (IT) into actionable knowledge
and operational technology (OT) data for a holistic asset •F
 ully integrates with the capabilities of S/4HANA
management system approach as outlined in ISO 55001 Enterprise in the areas of finance, human resources,
• Supports and promotes proactively managing manufacturing, materials management, etc.
asset-related risks to minimize disruption

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Asset Operations and Maintenance

Typical Pain Points Current State with ERP SAP S/4HANA Cloud/LoB Extension Planned Innovations
Business Benefits
on Traditional Database Enhancements Enhancements and Future Directions

Lack of real-time Multi-tiered landscape Real-time view for Real-time insight into • Increased return
view into ongoing consisting of SAP planners into ongoing asset performance on assets
maintenance activities, ERP, additional maintenance activities with key performance • Decreased unplanned
and asset performance ERP component with the ability to indicators (KPIs) asset downtime
indicators, hinders extensions, and reschedule multiple instantly refreshed or outages
timely decision-making business intelligence times a day in order
solution makes it to better plan and
challenging to obtain schedule maintenance
real-time view of activities and achieve
maintenance activities higher efficiency

Limited ability to analyze • Analysis is based Improved performance More analytical • Improvements in
data by machines on past performance of many transactions, apps for managers, operational efficiency
and sensors leads to and lagging indicators, such as scheduling of empowering them to • Reduced service and
high asset downtime which increases maintenance plans and make better decisions maintenance cost
and increased time the time to identify material requirements
to determine the root potential activities (MRP) runs
cause of failures that can improve
asset performance
• Sophisticated
analytics are
disconnected from
real-time operational
data , thereby losing
the transparency of
strategy changes

(continued next page)

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Asset Operations and Maintenance

Typical Pain Points Current State with ERP SAP S/4HANA Cloud/LoB Extension Planned Innovations
Business Benefits
on Traditional Database Enhancements Enhancements and Future Directions

• Limited ability to • Challenging to •E


 nhanced solutions for • Decreased unplanned
proactively plan include operational optimizing planning, asset downtime
maintenance activities technology (OT) data scheduling, dispatching, or outages
leads to high service into maintenance and staffing operations • Reduced service and
and maintenance costs planning, which •S
 implified and SAP maintenance cost
• Difficulty in simulating makes it difficult HANA-optimized
operational scenarios to identify proactive scheduling solution
and their impact on maintenance
•A
 dditional functionality
maintenance planning strategies
to simulate maintenance
leads to less than • Limited simulation requirements based on
optimal use of assets and forecasting different conditions
features to create and identification of
long-term cost-effective
maintenance plans strategies to operate
and maintain assets

Limited ability to provide SAP mobile apps for •O


 ption to run SAP Work • Improved asset
maintenance technicians improving employee Manager and SAP Inventory management FTE
sufficient information productivity by Manager from SAP HANA productivity
to efficiently install, allowing remote Cloud Platform • Reduced training
inspect, maintain, workers to access, •G
 eospatially enabled asset costs
and repair assets in transfer, complete, management business
the field leads to lower and manage their processes by leveraging
productivity and higher work and inventory: the SAP Geographical
maintenance costs SAP Work Manager Enablement Framework
mobile app, SAP
•N
 ext-generation,
Inventory Manager
native iOS mobile
mobile app
asset management
app designed for SAP
HANA Cloud Platform (continued next page)

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Asset Operations and Maintenance

Typical Pain Points Current State with ERP SAP S/4HANA Cloud/LoB Extension Planned Innovations
Business Benefits
on Traditional Database Enhancements Enhancements and Future Directions

Complex and non- User experience • Improved user • Additional SAP Fiori • Improved asset
intuitive user interface enabled via traditional experience enabled apps for maintenance management
of asset management SAP GUI interface by triggering technicians and FTE productivity
applications leads and Web-based web-based transaction planners • Reduced training
to lower employee transactions through SAP Fiori® • Seamless user costs
productivity Launchpad experience between
• SAP Fiori app for Web Dynpro and
employees to create SAP Fiori
and track requests
for maintenance in a
simplified manner

• Inability to identify • Risk-based asset Increased return


operational risks for lifecycle costing to on assets
each asset makes provide a framework
it difficult to reduce for evaluating various
the probability of investment and
asset failures operational options
• Limited ability to • Evaluation of asset risk
create transparent at system, subsystem,
and auditable equipment, and
investment strategies maintainable item level
for different types of • Improved functionality
assets makes it difficult to allow users to create
to improve planning lifecycle financials
and utilization of models for various
funds for assets investment items and
simulate total cost of
ownership for assets

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Environment, Health, and Safety (EH&S)

Typical Pain Points Current State with ERP SAP S/4HANA Planned Innovations Business Benefits
on Traditional Database Enhancements and Future Directions

Difficulty in developing one Multi-tiered landscape Native integration of • Environment management • Reduced EH&S
common view of process consisting of SAP ERP, incident management as application based on SAP management cost
risks related to workers, ERP component extension, well as health and safety S/4HANA • Improvements in
assets, or the environment and business intelligence management are available • SAP Management of operational efficiency
results in high cost for makes it challenging to as part of SAP S/4HANA Change application based
environment, health, access single source of digital core, which helps on SAP S/4HANA
and safety compliance the truth for all EH&S- in considerably reducing
• EH&S as part of SAP
related information the complexity of the
S/4HANA Cloud suite
landscape and improves
performance • Additional business process
for environment management
– wastewater management

• Limited ability to effectively • Analysis is based on past Embedded analytics Additional in-memory Reduced EH&S
analyze EH&S data to performance, which limits based on live data that analytics and predictions management cost
reduce workplace risk the scope of proactively help EH&S practitioners for health and safety
• Inability to develop driving EH&S risk reduction act in the moment management
proactive safety measures • Data is processed in
leads to low EH&S maturity batches, which increases
the time required to analyze
EH&S-related information

Limited ability to report Role-based access to the Incident reporting in • Reduced accident
and manage incidents in application to manage SAP Fiori app with and incident rate
an effective manner leads context-specific work and offline capabilities • Reduced compliance
to high frequency rate of gain visibility into results penalties and fines
incidents, injuries, and illness

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Asset Network

Typical Pain Points Current State with ERP SAP S/4HANA Cloud/LoB Extension Planned Innovations
Business Benefits
on Traditional Database Enhancements Enhancements and Future Directions

Limited ability to share Information sharing is SAP S/4HANA SAP Asset Intelligence • Enhanced • Reduced service and
and learn vital best only possible via direct integrated with Network enables functionality in SAP maintenance cost
practices on installation, interfaces between SAP Asset Intelligence access to standardized, Asset Intelligence • Decreased unplanned
usage, and performance individual systems, Network up-to-date, shared Network for content asset downtime
of equipment between which makes it difficult information about applications such as or outages
different stakeholders to achieve effective equipment by equipment attributes,
• Reduced asset data
hampers the process collaboration among bringing together locations, failure
management cost
of improving asset different stakeholders the manufacturers, modes, and codes
performance service providers, and • Reduced EH&S
• Tighter integration
operators of the world’s management cost
of SAP Asset
assets to collaborate Intelligence
around shared Network with
equipment information; SAP S/4HANA,
helps lower asset the SAP Product
lifecycle cost Lifecycle Management
(SAP PLM)
application, the
SAP Predictive
Management and
Service solution,
and SAP Master
Data Governance

(continued next page)

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Asset Network

Typical Pain Points Current State with ERP SAP S/4HANA Cloud/LoB Extension Planned Innovations
Business Benefits
on Traditional Database Enhancements Enhancements and Future Directions

Inability to effectively Structured and The SAP Master • Out-of-the-box Reduced asset data
integrate disparate un-structured master Data Governance applications for management cost
asset information data is managed application for central master data
leads to inaccurate using separate tools, consistent, up-to-date, management and
and incomplete asset which increases and accurate master governance for
master data the probability data across enterprise functional location,
of maintaining non- operations equipment master,
coherent master data maintenance, repair,
and overhaul bills
of material
• A master data
workbench to
manage the end-
to-end process
for structured and
unstructured data,
from engineering
to asset operations
and maintenance

(continued next page)

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Asset Network

Typical Pain Points Current State with ERP SAP S/4HANA Cloud/LoB Extension Planned Innovations
Business Benefits
on Traditional Database Enhancements Enhancements and Future Directions

• Limited ability to Condition-based SAP S/4HANA • SAP Predictive Delivery of additional • Increased return
predict potential asset maintenance integrated with Maintenance and out-of-the-box on assets
failure leads to high connecting the the SAP Predictive Service enables predictive models and • Reduced service and
unplanned downtime SAP Manufacturing Maintenance and understanding of further enhancements maintenance cost
• Difficulty in Integration and Service solution real-time health status around integration
• Decreased unplanned
predicting spare parts Intelligence (SAP MII) of a machine based with business systems
asset downtime
requirements results in application and SAP on critical values
or outages
high maintenance costs Plant Connectivity and trends and helps
software predict problems. • Increased first-time
It also allows for the fix rate
most efficient asset • Reduced warranty
management strategies costs
and better balancing
of cost, risk, and
performance
• Provides capability to
identify relevant spare
parts through machine-
learning algorithms
• Provides KPI
dashboards, cross-
machine analytics,
visualization of alerts
on geo-maps, vibration
analysis, and asset
health predictions
based on predefined
machine-learning
algorithms

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SAP S/4HANA Asset Management
Value Proposition
SAP S/4HANA Asset Management helps organizations digitally transform their operational processes
by enabling proactive maintenance strategies, optimal prioritization of maintenance activities,
and one common view of process risks across the organization.

STRATEGY ENABLEMENT $ BUSINESS BENEFITS

• Improvements in operational efficiency • D


 ecreased unplanned asset
• Increased return on assets downtime or outages (5-10%)*
• Improved service profitability • R
 educed service and
Strategy Business
Enablement Benefits
maintenance cost (10-15%)*

Risk Employee
RISK MANAGEMENT Management Engagement EMPLOYEE ENGAGEMENT
• Reduced accident and incident rate • Improved asset management
• Lower cost of risk mitigation FTE productivity
• Reduced compliance penalties and fines • Reduced lost-time accidents
• Reduced training costs

*
 enefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced
B
SAP S/4HANA + LoB and cloud capabilities. As each enterprise is at a different level of maturity, our recommendation is to work with you
to determine the value proposition for your enterprise.

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Customers are Achieving Value from SAP
TRENITALIA
Trenitalia is Italy’s leading rail transport operator, carrying two million Company
passengers every day. Trenitalia

• The company is using SAP’s Internet of Things (IoT) platform to analyze


Industry
data from thousands of onboard sensors in real time – helping Trenitalia
Travel and logistics
dramatically improve maintenance processes
• Trenitalia aims to reduce failures and disruptions that would have significant SAP Solution
impact on industrial costs and customer satisfaction SAP Predictive Maintenance
• Given the fact that maintenance costs are among the largest expenditure and Service on SAP HANA
in the profit and loss, the goal of introducing SAP® Predictive Analytics is to
reduce maintenance spend by more than 8% while raising asset availability Customer Website
www.trenitalia.com
• In the end, this will improve regularity of train journeys, will drive customer
satisfaction, and support the competitive positioning of the company in
the domestic market
• Using new predictive technologies is fully consistent with Trenitalia’s
overall vision, mission, and strategy

Click here for Trenitalia source reference.

KAESER KOMPRESSOREN
Kaeser Kompressoren is leveraging machine-to-machine and IoT technology Company
to monitor and simplify its compressed air stations. Kaeser Kompressoren

• The company implemented a real-time business solution powered by Industry


SAP’s in-memory computing platform Industrial machinery
• The platform enables Kaeser to automatically monitor air compressors and components
in use at customer sites
• The system analyzes data generated from the systems’ sensors and meters, SAP Solution
including energy consumption, operational status, and compressed air SAP Predictive Maintenance
quality, to predict which equipment will need service and when and Service on SAP HANA

• Predictive analytics gives customers the luxury of planning downtime


Customer Website
and avoiding unexpected outages, which can cause grievous injury to
www.kaeser.com
the bottom line

Click here for Kaeser Kompressoren source reference.


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Customers are Achieving Value from SAP

MORITZ J. WEIG GMBH & CO. KG


Moritz J. Weig GmbH & Co. KG chose EHS functionality on SAP S/4HANA to Company
manage its business when it comes to health and safety. Key to this choice Moritz J. Weig GmbH & Co. KG
were criteria such as SAP’s user experience and the desire to empower EHS
practitioners with live data to act in the moment. The solution will help move Industry
the company beyond automation to predictive suggestions. Mill products

SAP Solution
SAP S/4HANA
(EHS Functionality)
“The SAP S/4HANA EHS solution
will allow us to manage health and
Customer Website
www.weig-karton.de

safety embedded into our core


corporate processes. In that context,
simplification and operationalization
are key to ensure the engagement of
our entire workforce and will help us
to strive towards zero accidents.”
—Ralf Schnackerz, CIO, Moritz J. Weig GmbH & Co. KG

As customers are at various stages of realizing the value of S/4HANA, additional stories
will become available in subsequent updates to this white paper.
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