Delivering Real-Time Business Value for Life Sciences

Delivering Real-Time Business
Value for Life Sciences
SAP Business Suite Powered by SAP HANA
July 2013 Public

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public
 Continuously improve operational efficiency,
reduce cost
 Enter rapidly new markets in a compliant fashion
 Boost margins through real-time customer service
The real-time opportunity

Becoming an innovation-driven enterprise
Aligning business operations with customer needs
Gain real-time
operational visibility
 Boost revenue through responsive supply
networks
 Improve manufacturing operations
 Reduce waste
Ensure high-quality
and compliant
products
 Increase quality with low cost of compliance
 Optimize maintenance
 Manage outsourced manufacturing operations
effectively
Boost operating
margins with improved
customer service
 Accelerate service responsiveness
 Manage physician/payer/patient relationships
profitably
 Raise customer satisfaction and margins

SAP Business Suite powered by SAP HANA
The next-generation business platform
Real-time business
In-memory
Business
transactions
Digital
connections
Collaborative
business
CloudSocial
Big DataMobile
One platform bringing it all together
Advanced
analytics

Industry value map for life sciences
The life sciences networked enterprise
Patient and Provider
Engagement
Channel Effectiveness and
Social CRM
Contract Lifecycle Management
Real-Time Service Management
Collaborative Innovation
and Development
Collaboration and Social R&D
Product Compliance and Product
Safety
Product Development Integration
and Acceleration
Product and Service
Differentiation
Responsive Supply
Networks
Synchronized Demand and
Supply Chain
Logistics and Fulfillment
Supplier Networks
Serialization / Global
Traceability
Compliant Manufacturing
Manufacturing Operations
Quality Excellence and
Maintenance
Manufacturing Execution
People and
Talent
Core Human
Resources and Payroll
Talent Management
Time and Attendance
Management
Workforce Planning
and Analytics
Finance
Financial Performance
Management
Accounting and
Financial Close
Treasury and Financial
Risk Management
Collaborative Finance
Operations
Enterprise Risk and
Compliance
Management
Procurement
Supplier Discovery and
Lifecycle Management
Strategic Sourcing and
Contracting
Procurement and Order
Collaboration
Collaborative Invoice
to Pay
Commodity
Management
IT Management
Application Lifecycle
Management
IT Infrastructure
Management
IT Portfolio and Project
Management
IT Service
Management
IT Strategy and
Governance
Outsourced Manufacturing
Physician/Patient/Payer
Relationships
Technology
Solutions
Analytics Consumer ExperienceData Management Enterprise Mobility
SAP HANA Platform
Application
Development and
Innovation

Highest real-time
business value
for life sciences
Industry value map for life sciences
The life sciences networked enterprise
Patient and Provider
Engagement
Channel Effectiveness and
Social CRM
Contract Lifecycle Management
Real-Time Service Management
Collaborative Innovation
and Development
Collaboration and Social R&D
Product Compliance and Product
Safety
Product Development Integration
and Acceleration
Product and Service
Differentiation
Responsive Supply
Networks
Synchronized Demand and
Supply Chain
Logistics and Fulfillment
Supplier Networks
Serialization / Global
Traceability
Compliant Manufacturing
Manufacturing Operations
Quality Excellence and
Maintenance
Manufacturing Execution
People and
Talent
Core Human
Resources and Payroll
Talent Management
Time and Attendance
Management
Workforce Planning
and Analytics
Finance
Financial Performance
Management
Accounting and
Financial Close
Treasury and Financial
Risk Management
Collaborative Finance
Operations
Enterprise Risk and
Compliance
Management
Procurement
Supplier Discovery and
Lifecycle Management
Strategic Sourcing and
Contracting
Procurement and Order
Collaboration
Collaborative Invoice
to Pay
Commodity
Management
IT Management
Application Lifecycle
Management
IT Infrastructure
Management
IT Portfolio and Project
Management
IT Service
Management
IT Strategy and
Governance
Outsourced Manufacturing
Physician/Patient/Payer
Relationships
Technology
Solutions
Analytics Consumer ExperienceData Management Enterprise Mobility
SAP HANA Platform
Application
Development and
Innovation
6
1
4
2
7
3
5

Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Accounting and financial close
Business value for entity close
 Limited transparency without ability to
manage a central financial close
 Missing financial excellence results at
the capital market due to a higher
cost of equity
 Difficult to support parallel financial
reporting standards and simulate
scenarios
 Single repository for company and
corporate data
 Common view across financials and
logistics
 Deeper and faster insight down to the
lowest level of detail
 Faster reconciliation with automated
real-time matching
 Easier consolidation across legal
entities, including issues like
intercompany transfers
 Simulation of organizational changes
and alternate accounting methods, or
FX rates
Improve
service-level
performance
Reduce
Minimize
month-end
closing time
operating costs
With SAP Business Suite
on SAP HANA

Today
Financial performance management (1/3)
Business value for planning, budgeting, and forecasting
 Planning performance is limited to
online analytical processing (OLAP),
staged cubes for transactional and
master data.
 Reporting, loading, and retraction
performance limits planning
iterations.
 Enable analytics and transactions on
the same enterprise platform for real-
time visibility.
 Reduce planning cycles that improve
information process across
enterprise.
 Faster extract and DataStore object
(DSO) activation times
 Iterative planning and real-time
simulation supported through
improved performance
 Better performance for drill down and
consolidation
 Fast drill through and live view of
transactional data in suite
Improve
service-level
performance
Reduce
Minimize
cycle times and
manual effort
operating costs
on SAP HANA
 Seamless replication of master and
transactional data from SAP
Business Suite applications
 Availability of more granular data to
support planning

Today
Business value for profitability and cost analysis
 Data latencies and processes delays
 Low ability to react fast to issues and
opportunities
 Internal decision making that suffers
from lack of data depth and
availability
 Long-running processes
 Time-intensive data queries
 Manual data analysis
 Substantial amount of effort not
directly adding value
 Unsatisfying resource efficiency and
effectiveness
 Timely execution of critical business
processes
 Higher ability to swiftly act in dynamic
market environments
 Fast decision making
 Critical transactions and calculations
that run quickly
 Instant response times on queries
 Prebuilt analytics to automate the
data analysis process
 Leaner processes from data capture
through data analysis
 Increased productivity through
process-optimized analytics and
mobile support
Improve
service-level
performance
Reduce
Minimize
cycle times and
manual effort
operating costs
on SAP HANA

Today
Business value for financial and managerial reporting
 Risk of noncompliance due to
unfulfilled or overrun audits
 Data masses while decision-relevant
information not available
 Data analysis not supported or
automated
 Long-running batch jobs and reports
 Time-intensive data analysis
 Large number of time-consuming,
and non-value-added processes
required to access and provide
accurate, up-to-date information
 Timely execution of compliance-
relevant validation tasks
 Increased end-user satisfaction with
sound data
 Accurate, detailed, visualized, timely,
and actionable information
 Critical processes and reports are
accelerated
 Instant response time on data
analysis queries
 Workarounds and data latencies
eliminated
 End-user data analysis through self-
service
Improve
service-level
performance
Reduce
Minimize
month-end
closing time
operating costs
on SAP HANA

Today
Collaborative financial operations (1/3)
Business value for receivables management
 High external financing costs from
lack of working capital management
 Inadequate alerting mechanics and
lack of context-based facts
 Need to manage exceptions within
high volumes of invoices
 Manual efforts for assigning incoming
payments to invoices
 Need for sales and service to have
better data to support collections,
dispute, and credit management
 Cash tied up in high days sales
outstanding or bad debt write-offs
 Easier identification of weak points as
a basis for process optimization
 Exceptions from reports with
thousands of pages getting pushed to
mobile devices
 Algorithms to help receivables clerks
match incoming payments
 Unstructured data that can be
searched easily
 Integration of sales and account
management where real-time data is
required
 Flawless cash collection through real-
time data instead of batch data
Optimize
working capital
Minimize
Reduce
bad debt write-offs
days sales
outstanding
on SAP HANA

Today
Business value for payables management
 Expensive and error-prone manual
process steps
 Need to improve compliance and
audit turnaround time
 High cost per invoice due to large
amounts of tasks
 Optimization of supplier payment
according individual payment terms
 Better insight on the company’s cash
position
 Instant visibility of account payables
and days payable outstanding
 Joint view of payables and cash
positions to support financial
decision-making
 Quicker inquiry turnaround time for
audits
 Better scheduling of payment runs
through real-time and accurate
insight on vendor-opened receipts
 Payment of dedicated items with
transparency about selection criteria
Increase
days payable
outstanding
Optimize
Reduce
working capital
lost supplier
discounts
on SAP HANA

Today
Business value for shared service framework for finance
 Difficulties in handling high volumes
of queries in shared services
organizations (SSOs)
 Too much time consumed by
searches for vendor, customer, and
employee data
 Challenges to continuously improve
the quality of service efficiently
 Significant improvement of in-box
performance
 Accelerated navigation within the in-
box
 Ability to review and prioritize work
much quicker
 Faster identification of vendors,
customers, and employees
 Improved satisfaction of the agents
and the clients through provision of
more responsive service
 Reduced costs and faster response
times
 SSO able to meet service-level
agreements (SLAs) on budget and
improve key performance indicators
(KPIs)
Increase
productivity for
shared services
agents
Improve
Reduce
employee
satisfaction
overall costs of
delivering services
on SAP HANA

Today
Enterprise risk and compliance management
Business value for access control role analytics
 High number and fast increase of
unused and orphaned roles
 Long hours required to run batch jobs
to analyze transaction logs with
millions of records
 US$4,000 required each year for
maintenance for each active ERP
role
 Long process for identifying unused
roles, resulting in higher risk of
noncompliance with corporate rules
 Real-time analysis of role usage
when discussing with the business
owners of the roles
 Deep insight into roles for uncovering
potential risks for the organization
 Real-time analysis on roles for reuse
or enhancements instead of creating
new or consolidating existing roles
 Ability to combine role data coming
from different sources
 Facilitation of business reengineering
and reorganization through joint
analysis of role and HR data
Reduce
unused/orphaned
roles
Consolidate
Reduce
most-frequently-
used (active) roles
cost of
noncompliance
on SAP HANA

Today
Physician/patient/payer relationships (1/2)
Business value for sales
 Missed market opportunities due to
lack of visibility to third-party data
 Data explosion, driven by new level
of sales rep connectivity via mobile
devices
 Data in disparate data sources, which
prevents true 360-degree view of the
customer
 Ability to integrate third-party data
 Agile marketing to respond faster to
changing market dynamics and
opportunities
 New analytical data mining capabilities
on Big Data (social media, predictive)
 Near real-time monitoring and
reporting on sales performance
 One central place for collecting all
customer data, leading to 360-degree
view of customers in
real time
 Precision marketing to personalize
every interaction with the customer
Improve
profitability
Optimize
Increase
return on
marketing
investments
customer
satisfaction
on SAP HANA

Today
Physician/patient/payer relationships (2/2)
Business value for marketing
 Difficulty in targeting particular
territories or physicians by disease
area
 Inability to identify gaps in sales
pipeline, leading to missed targets
 Difficulty to conclude actionable
findings from vast customer data
needed to maximize deal sizes
 Low insight into customers’ buying
preferences from social media
content
 Easy segmentation of physicians with
account intelligence analytics
 Faster transaction search capabilities
 Complete transparency into sales
pipeline based on real-time
information with unlimited
drill-down functionality
 Real-time analysis of Big Data to
better understand buying patterns
 Real-time access and assembly of all
data including social and
sales data
Increase
profitability
Increase
Improve
percentage of
sales reps
achieving quota
offer win rate
on SAP HANA

Today
Real-time service management
Business value for complaint management and root cause analysis in
medical device companies
 Locating the right resources (like
machines) to resolve customer
issues takes too long.
 Root cause analysis based on
unstructured data such as text is not
possible.
 Managers lack actionable reporting
and visibility into workload of teams.
 Search times are long, and it is hard
to find customer records within
masses of records and interactions.
 Easier search capabilities for experts
in order to dispatch or escalate
issues to help field technicians
 Root cause analysis based on
structured and unstructured data to
help customer service
 New actionable insights into
workload of teams and employees
 Significantly faster searches, such
as account searches, interaction
history, and customer fact sheets
Decrease
average handling
time
Improve
Reduce
service-level
agreement
compliance
service cost
on SAP HANA

Today
Logistics and fulfillment (1/2)
Business value for inventory management
 Lack of real-time insight into
inventory situation that might cause
inaccurate reordering, finally resulting
in higher stock
 Time-consuming inventory
management reporting
 Need for accurate display of actual
stock to react quickly to stock
shortfall
 Inability to completely track material
movements
 Real-time stock insight and inventory
monitoring with high performance
 Support for demand-driven
procurement
 New analytical inventory
management cockpit
 Real-time access to complex
inventory management data
 High-performance inventory
management with large volumes of
documents
monitoring
 Improved adjacent procurement
processes, such as purchase order
or invoicing processing
Reduce
inventory levels
Minimize
Optimize
out-of-stocks
working capital
on SAP HANA

Today
Logistics and fulfillment (2/2)
Business value for warehouse management
 No up-to-date view of the inventory
situation
 Need for accurate display of actual
stock to react quickly to stock
shortfall
 Time-consuming inventory
management reporting
 Real-time access to complex
inventory management data
monitoring
 High-performance inventory
management with large volumes of
documents
 Higher process efficiency in adjacent
procurement processes
on SAP HANA
Reduce
out-of-stocks by
36%
Decrease
Limit
bullwhip effect
inventory and
safety stocks by
29%

Today
Procurement and order collaboration
Business value for operational procurement
 Missing real-time insight into
operational procurement reporting
 Dynamic operational procurement not
possible
 Slow and costly paper-based
processes
 High transaction costs
 Increased processing time for
transactions with a high number of
line items
 Frequent errors due to maverick
spend
 New configuration options for
procurement analysis
 Modern, easy-to-consume user
interface
 Complete visibility into end-to-end
procurement activities
 Real-time insight and information
that is easy to manipulate
 Accelerated long-lasting processing
of purchasing documents
Increase
transparency
Lower
Increase
procurement
operations cost
process
effectiveness
on SAP HANA

Today
Synchronized demand and supply chain and supplier
networks (1/2)
Business value for sales and operations planning
 No smooth collaboration across
stakeholders during sales and
operations planning
 Long cycle times to develop
consensus forecast
 Long loading times lead to decisions
based on incomplete, inaccurate and
outdated data
 Complex administration of system
landscapes, especially movement
and replication of data
 Increased collaboration and shorter
cycle times for sales and operations
planning
 Improved user experience
 Better supply chain visibility and
decision making through near real-
time reporting with faster analysis
 Better production and less cost
through simplified system setup,
administration, and robust planning
foundation
Reduce
planning cycle times
Increase
Reduce
supply chain
performance
total cost of
ownership (TCO)
on SAP HANA

Today
Synchronized demand and supply chain and supplier
networks (2/2)
Business value for supply chain monitoring
 Lack of near real-time information
 Batch jobs to extract data from
planning system to central reporting
based on the SAP NetWeaver
Business Warehouse (SAP
NetWeaver BW) application on weekly
basis
 No ad hoc operational reporting
 Reporting, queries, dashboards that
must be created by each customer
individually
 Not possible to run sub-daily planning
jobs and analyze the results
 Inability to respond fast to ad hoc
queries from customer which may
result in lost sales
 Implementing GxP (good anything
practice) compliance made easier by
improved supply chain visibility
 Decision support based on near real-
time information
 Information able to be updated via
delta capabilities
 Prebuilt box analytical reporting
scenarios provided with streamlined
data load
 Planned ability for customers to add
their own KPIs and dashboards
 Advanced data retrieving and
computing capabilities supported
 Optimized reporting of supply chain
planning data
Reduce
time spent compiling,
generating, and
waiting for reports
Increase
Optimize
visibility into key
supply chain data
in an easily
consumable way
analysis capabilities
with multiple levels of
aggregation and drill-
down techniques
on SAP HANA

Today
Manufacturing operations
Business value for asset operations and maintenance
 Maintenance scheduling that
consumes a great deal of time
 Manual and error-prone process of
preselection of maintenance plans
 Potentially missing necessary objects
for maintenance calls
 High number of maintenance plans
that must be scheduled frequently
 Planning once a week
 Accelerated mass transactions
 Instant analysis on top of
transactions
 Preselection of due plans that speeds
up the process significantly
 Real-time analytics on all data,
including machine sensor information
 Scheduling all maintenance plans
within a specific time frame
 Faster response times and more
accurate maintenance scheduling
 Planning several times a day and up-
to-date scheduling information in
maintenance
Increase
asset utilization and
reduce unplanned
asset downtime
Maximize
Update
asset uptime
scheduling information
on maintenance
operations
on SAP HANA

Today
Core HR and payroll (1/4)
Business value for payroll processing
 Responses to management ad hoc
inquiries about trends of high volume
payroll information are costly.
 Business users have very limited
ability to analyze payroll results.
 Addressing employee inquiries
around payroll is time-consuming and
expensive.
 HR needs to increase the quality of
service provided to employees at
lower costs.
 HR IT resources freed to focus on
the execution of organizational
strategic tasks
 Thresholds leveraged as a steering
mechanism to optimize business
performance
 Simplification of payroll data analysis
with optimized representation of data
 High-speed read access based on
SAP HANA, slashing time to access
and analyze critical payroll
information
 Faster response times to employees,
increasing employee productivity and
satisfaction
Increase
efficiency of payroll
management
Improve
Reduce
employee
satisfaction
overall costs of
payroll processing
on SAP HANA

Today
Business value for effective shared services delivery
 Shared services organization (SSO)
is challenged to give prompt,
accurate answers.
 SSO agents spend time searching for
employee data using employee
identification.
 SSO needs to improve the quality of
lower cost.
 Acceleration of in-box performance
allowing SSO agents to review and
prioritize their work more efficiently
 Faster employee identification
enabling more responsive service
 Improved employee satisfaction
 Reduced costs and faster response
times
 SLAs and budget objectives met,
KPIs improved
Increase
productivity for
shared services
agents
Improve
Reduce
employee
satisfaction
overall costs of
delivering services
on SAP HANA

Today
Business value for time and absence calculation
 Responses to management ad hoc
inquiries about trends of high-volume
payroll information are costly.
 Business users have a very limited
ability to analyze time evaluation
data.
 Addressing employee inquiries
around time/absence is time-
consuming and expensive.
 HR needs to increase the quality of
lower cost.
 HR IT resources freed to focus on
the execution of organizational
strategic tasks
performance
 Simplification of time evaluation data
analysis with optimized
representation of data
 High-speed read access based on
SAP HANA, slashing time to access
and analyze critical time information
 Faster response times to employees,
increasing employee productivity and
satisfaction
Increase
efficiency of time
management
Improve
Reduce
employee
satisfaction
overall costs of
time management
on SAP HANA

Today
Business value for transactional analytics
 Translation of organizational strategy
into HR metrics requires significant
effort or special expertise.
 Decisions are often based on
hunches.
 It is difficult to zero in on underlying
transactions from high-level KPIs.
 Data loads in traditional reporting
tools are time-consuming.
 Integrated and personalized cockpits
that provide insight into metrics that
matter most
performance
 Predefined workforce and time
management–related KPIs for
managers with the ability to navigate
into details
 Analytics embedded in business
transactions
 Prebuilt virtual data models for real-
time transactional analytics
 Simplified architecture
Increase
revenue per
employee
Optimize
Reduce
HR processes
time and costs of
operational
reporting
on SAP HANA

Today
Manufacturing execution (1/2)
Business value for real-time requirements planning
 Slow manufacturing resource planning
(MRP) due to complex recipes and
process instruction sheets in
pharmaceuticals
 Complex bill of materials and routing
structures in medical devices
companies
 Synchronizing MRP runs across
plants in the supply chain made
difficult by long MRP runs
 Inability to replan quickly if conditions
change due to long
run times
 No holistic production planning
across all relevant production sites
 50% reduction in MRP runtime with
high-speed reads
 Faster reaction to demand changes
 Demand information propagated
faster through the supply chain
 Facilitation of corrective action at the
plant level and across plants
 Enablement of broader supply chain,
sustainability, financial, and
performance improvements
 Better synchronize demand and
supply for global cross-plant planning
 Instant update on supply network
collaboration with latest demand
information
Reduce
out-of-stocks
Decrease
inventory and
safety stocks
on SAP HANA

Today
Manufacturing execution (2/2)
Business value for global plant performance management
 Complex global supply chains
leading to several constraints
 Hard to implement GxP compliant
practices due to delayed insights into
manufacturing performance
 Inability to find process control or
maintenance issues and bottlenecks
in production
 Need to capture the root causes for
downtimes, efficiency losses, and
poor quality
 High costs due to decreased asset
utilization, unplanned downtimes, and
inefficient performance
 Reduced customer responsiveness
due to insufficient product yields and
poor product quality
 Integrated view of the global supply chain
 Combination of quantitative KPIs with
qualitative context and reasons for
performance issues
 Combination of plant performance with
business context, improving GxP
compliance
 Facilitation of corrective action at the
plant level and across plants
 Enablement of broader supply chain,
sustainability, and financial and
enterprise performance
improvements
 Enterprise-level rollup of plants that
enable analytics comparing assets
and performance KPIs across sites
Improve
return on assets and
product quality
Increase
Reduce
resource utilization
and asset uptime
unplanned
downtime
on SAP HANA

Today
Product development integration and acceleration (1/3)
Business value for portfolio management (SAP Portfolio and Project
Management) of drugs and devices
 Solid go/no-go decisions requiring
real-time status data of running
clinical trials and portfolios
 Time-consuming analysis for large
portfolios, leading to lack of
transparency
 Cumbersome aggregation of
financials and investment
commitments for large portfolios
 Outdated information on the
investment increasing efforts for
reviews
 High efforts for manual editing of
financial KPIs like net present value
or internal rate of return
 Real-time access to decision-making
data aggregated from lowest levels,
such as trial expenses
 Evaluation of pipeline net present
values based on most recent revenue
and expense projections
• Ability to go top down from the overall
budget down to single expenses
through drill downs
• Faster aggregation of financials along
the investment area hierarchy
• Automated calculation of most
important KPIs based on values from
financial planning
Increase
transparency for
decision making
Improve
speed of
aggregating
financial
information
on SAP HANA

Today
Business value for portfolio management (SAP Portfolio and Project
Management) of drugs and devices
 Long waiting times when starting the
project and task dashboards
 Low productivity when working on
several projects and tasks across
projects
 Updates on multiple tasks that are
inefficient and time consuming as
tasks are confirmed one by one
 Very long times spent searching for
documents across projects or for
large portfolio of projects
 Slow process of finding projects,
tasks, and phases by responsible
project member
 Faster access to users tasks and
projects
 Accelerated access to project, task,
and checklist item dashboards
 Project team members able to
confirm times, status, and dates and
attach documents for several tasks at
once
 Increased user productivity
 Accelerated search for documents
 Ability to find projects or tasks faster
by responsible project member
Increase
user productivity
Reduce
Improve
time for task
confirmation
search for
documents and
project elements
on SAP HANA

Today
Business value for project management (project systems)
 Long wait and locking times slow
down execution and reactions on
deviations.
 User acceptance is reduced due to
affected usability in handling large
project data.
 Analysis of high data volumes for
complex, long-lasting projects or
cross-project monitoring is difficult.
 Deviations in costs, time, resources,
or quality are seen too late.
 Reduced waiting and locking times of
critical transactions along the end-to-
end process
 Higher process efficiency and
improved employee productivity
 Acceleration of project reporting and
new project line item reporting
delivering faster insights
 Timely corrective measures through
clear insights in deviations and risks
in real time
Increase
user productivity and
end-to-end process
efficiency
Improve
transparency and
decision support to
take corrective
measures in time
on SAP HANA

© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Thank you

Reference US$10 billion life sciences company
Summary of validated scenarios
Feasibility
Businessvalue
Legend
LowHigh
Low High
SAP Business
Suite on
SAP HANA
SAP HANA
products
SAP HANA
platform
Phase – deployment road map
Annual revenue: US$10 billion
1 Short term
TCO: IT spend avoidance (data volumes projected to keep
growing; reduced data load and monitoring costs;
accelerated time to value on future projects)
FIN: Financial supply chain (growth in transactions that
has consumed window of time available for producing
required reports)
SCM: Distributor channel insight (enhancing daily sales
and inventory information for all SKUs, with the ability
to look at nonaggregated data to improve supply
chain responsiveness and insight)
2 Medium term
SCM: Supply planning analytics (access to critical
inventory and manufacturing planning reporting
limited by response times)
FIN: Fast financial close (increasingly dynamic business
environment demanding greater visibility and
analytics; regulatory demands increasing; limited
ability to analyze and understand discrepancies)
CRM: Sales analytics (ability to explore data for customer
insight, which will lead to a competitive advantage
and increased revenue)
Financial
supply chain
($1 million)
Supply
planning
analytics
($650k)
IT spend avoidance
($3.2 million)
Payroll/GSR
($870,000)
Distributor
channel insight
($2.2 million)
Sales analytics
($6.9 million)
Recall
management
($1.3 million)
Fast financial close
($150,000)
1
1
2
2
3
1
23
SAP HANA use cases mapped to
industry value map end-to-end solutions
SAP HANA Platform: customer-specific
SAP HANA products: SAP NetWeaver BW on
SAP HANA, high-performance applications (HPAs),
apps powered by SAP HANA
SAP Business Suite on SAP HANA
Scenario
(business value)

4,3
5,1
6,2
2,2
2,2
2,2
6,8
8,2
0
2
4
6
8
10
12
14
16
18
2013 Phase 1 Phase 2 Phase 3
Costs SoH Applications Platform
Reference US$10 billion life sciences company
SAP HANA platform
SAP HANA platform: Anything built on the platform that is customer-specific – new business processes and business models
SAP HANA products: SAP NetWeaver BW powered by SAP HANA; high-performance apps (HPAs); applications – mapped to
inventory value map (IVM) end-to-end (E2E) solutions
Currently available functionality (SP0, 1, 2) – 23 scenarios mapped to IVM E2E solutions, and planned functionality(all of the
E2E solutions on the IVM are in scope)
Based on actual SAP
customer engagements
Annual benefits, SAP HANA
platform: $8.2 million
Annual benefits, applications
powered by SAP HANA: $2.2 million
Annual benefits, SAP Business
Suite on SAP HANA: $6.2 million
Estimated deployment costs
Total transition cost: to be determined
SAP HANA platform
SAP HANA products
SAP Business Suite
on SAP HANA
In millions of US$
More information: Value Engineering
Annual revenue: US$10 billion
SoH= SAP Business Suite on SAP HANA

Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation
sessions and may not be completely validated.
Medical solutions provider – recall management
Life sciences
Business context and goals
 A medical solutions provider has processes in place to address recall management, but this is a
complex batch job process that can take significant time to execute. Reducing the time and
complexity of this process can speed responsiveness, reduce risk, and improve healthcare
outcomes.
Business challenges
 Business support for applying new technology to a process that works today could be a challenge
in resource-constrained companies.
Contribution of SAP HANA
 SAP HANA will enable the entire process to run faster and provide the ability to get deep insights
into the data without the need to build data marts. This will improve responsiveness and quality.
Value drivers/KPIs
 Improved responsiveness in understanding internal quality issues, customer complaints, and
adverse medical events
Innovation scope
SAP HANA platform (customer-specific)
E2E solution
Life sciences – product compliance and
product safety
Value potential 3
Feasibility 5
Low High
1 5
Low High
1 5

Medical solutions provider – sales analytics
Life sciences
 This medical solutions provider currently pushes reports to the sales force with data that is
generated weekly. Access to real-time information enabling users to explore data for customer
insights could lead to a competitive advantage and increased revenue.
Business challenges
 User adoption, ability to access data, introduction of process change with sales force
 SAP HANA will help in providing near real-time insight to customer and supply chain data.
Value drivers/KPIs
 Improved customer service, responsiveness, inventory management, revenue growth, and
profitability
Innovation scope
SAP HANA platform (customer-specific)
E2E solution
Life sciences – synchronized demand and
supply chain
Value potential 5
Feasibility 5
Low High
1 5
Low High
1 5

Pharmaceutical manufacturer – distributor channel insight
Life sciences
 A pharmaceutical company receives product sales and inventory information daily for all its SKUs
but does not have the ability to look at nonaggregated data to improve supply chain
responsiveness and insight.
Business challenges
 There may be some additional costs to get access to this data daily. In addition, there will need to
be some work done around data quality. Access to this data globally will be a challenge.
 SAP HANA will enable insight into nonaggregated data across the entire North American supply
chain.
Value drivers/KPIs
 Improved supply chain visibility, insight, responsiveness, and security
Innovation scope
SAP HANA products (HPAs, apps)
E2E solution
Life sciences – logistics and fulfillment
Value potential 5
Feasibility 5
Low High
1 5
Low High
1 5

Healthcare products manufacturer – integrated business
planning
Life sciences
 Sales and operations planning (S&OP) is complex process with a long lead time process to
aggregate levels of data. Supply chain planning requires access to real-time information across a
complex network to improve insight and responsiveness.
Business challenges
 Cultural issues in designing a global supply chain will be required to benefit from improvements
in this solution.
 SAP HANA will enable insight to nonaggregated data across the entire North American supply
chain.
Value drivers/KPIs
 Reduced inventory costs, improvements in customer service, reduced supply chain costs
Innovation scope
(now and future)
E2E solution
supply chain
Value potential 5
Feasibility 3
Low High
1 5
Low High
1 5

Pharmaceutical company – business warehouse landscape
simplification
Life sciences
 This pharmaceutical company has a complex business intelligence (BI) landscape and will
require a significant investment in new technology. It is looking for a strategy to improve
performance and manage costs long term. The current approach was not sustainable.
Business challenges
 The company is risk-averse and has not been an early adopter of new technologies. It has a new
management team in place, which is new to the life sciences industry.
 SAP HANA will enable simplification of the BI landscape and provide a platform for improved
information access.
Value drivers/KPIs
 Landscape simplification, reduced costs, improved performance, high value delivered to business
partners
Innovation scope
E2E solution
Life sciences – analytics
Value potential 4
Feasibility 4
Low High
1 5
Low High
1 5

Pharmaceutical company – next-generation sequencing in
life sciences R & D
Life sciences
 Finding the next blockbuster is very costly, with the tools generally used from the last two
decades. Big Data and next-generation sequencing (NGS) allows genome mutation identification
and analysis in just 20 minutes. This used to take days, and so there is the potential for radical
cost reductions and acceleration of R & D pipeline.
Business challenges
 Provide applications that overcome workflow challenges related to data analysis as well as
regulatory uncertainties and sequencing costs
 Provide NGS for clinical research and molecular diagnostics
Process innovations
 Solution delivered: Rapid bioinformatics of genome interpretation provided; biomarker data to
guide treatment decisions through companion diagnostics based on real time
 Business benefit: Reduced time and cost of sample-to-result NGS; significantly improved
effectiveness of scientists
 Acceleration of R & D pipeline
Value drivers/KPIs
 Cost of R & D; throughput of R & D; improved certainty/statistical validity
Innovation scope
E2E solution
Life sciences – product development
integration and acceleration
Value potential 5
Feasibility 4
Low High
1 5
Low High
1 5

Medical device manufacturer – advanced planning and
optimization benefits
Life sciences
 Limited visibility, development backlog
Business challenges
 Access to critical inventory and manufacturing planning reporting is limited by response times.
S&OP requires validation across reporting environments. Inventory initiatives require increasing
access to more timely information to drive results.
Process innovations
 Reduce inventory costs, inventory obsolescence, lost revenue due to stock-outs, and reporting
validation costs
 Improve service levels without increasing cost to serve; increase ability to manage supply chain
costs with access to timely information; plan more accurately by providing access to actual
results; reduce planning cycle times
Value drivers/KPIs
 Reduced cost of planning validation
 Reduced cost of S&OP
Innovation scope
(now and future)
E2E solution
supply chain
Value potential 5
Feasibility 5
Low High
1 5
Low High
1 5

Medical device manufacturer – AR financial supply chain
management benefits
Life sciences
 Business processes supported, limited ability to scale
Business challenges
 Growth in transaction volume has nearly consumed window of time available for producing
required reports. Multiple data sources has created need for audit and reconciliation of reports.
Effort required to execute transaction-level reporting leaves no time for other reports.
Process innovations
 Reduce monitoring and reconciliation efforts.
 Distribute workload more evenly through reducing wait time on data load and reporting process.
 Reduce risk of failure in mission-critical process; support ability to scale; reduce compliance risk;
support Sarbanes-Oxley and audit compliance
Value drivers/KPIs
 Reduced downtime recovery
Innovation scope
(now and future)
E2E solution
Life sciences – accounting and financial close
Value potential 5
Feasibility 5
Low High
1 5
Low High
1 5

Medical device manufacturer – accounting and financial
close
Life sciences
 Increasing transactional burden limits strategic focus
Business challenges
 Reporting and analytics transactional functions consume significant time and resources.
Increasingly dynamic business environment demands greater visibility and analytics. Regulatory
demands are increasing, with limited ability to analyze, understand, and respond.
Process innovations
 Reduce cost of operations and analysis, cost of budgeting and forecasting, and cost of data audit
and reconciliation
 Improve visibility to product line, product profitability; improve visibility to customer profitability;
improve ability to analyze and understand regional performance, early identification of trends;
increase ability to support strategic activities with accuracy
Innovation scope
(now and future)
E2E solution
Life sciences – accounting and financial close
Value potential 5
Feasibility 5
Low High
1 5
Low High
1 5

Medical device manufacturer – sales reporting benefits
Life sciences
 SLA and performance challenges are being experienced with an expanding user base.
Business challenges
 Mission-critical reports are delivered inconsistently. Reaching global user base with timely
information is a challenge. There is frustration in the user community based on limited access to
information that drives core processes.
Process innovations
 Reduce lost sales time and improve revenue. Improve performance on SLAs. Preserve
investment in portal.
 Improve customer satisfaction through more value-added sales relationship; increase revenue
through improved visibility into performance and opportunity; improve ability to manage PO-
pending process through increased visibility and timeliness of information
Value drivers/KPIs
 Reduced time spent on workbooks
Innovation scope
(now and future)
E2E solution
Value potential 5
Feasibility 5
Low High
1 5
Low High
1 5

Medical device manufacturer – IT spend avoidance and
landscape simplification
Life sciences
 Analysis environment is complex and expensive.
Business challenges
 Data volumes are projected to keep growing, driving up storage, server, software, and related
costs. Data is moved to an intermediate staging area where it is cleaned and normalized before
being uploaded into SAP NetWeaver BW. Considerable expense is involved.
Process innovations
 Reduced storage costs, server costs, database license and maintenance, system development
and management, data load and monitoring
 Empower business community with greater access and faster performance; support increasing
demand for access to more timely information; increase ability to support analytics for large data
sets and data from multiple sources
Value drivers/KPIs
 Cost of custom development
 Acceleration of time to value on future SAP NetWeaver BW projects
 Reduction of data load and monitoring
Innovation scope
(now and future)
E2E solution
Value potential 5
Feasibility 5
Low High
1 5
Low High
1 5

Medical device manufacturer – SCM benefits
Life sciences
 There is growing demand for timely information.
Business challenges
 Continued pressure to improve performance demands increased access to information.
Increasing regulation requires audit trail and ability to rapidly access audit data. Increasing
globalization raises demands on supply chain and creates proliferation of suppliers.
Process innovations
 Improve planning efficiency and effectiveness. Increase procurement savings on direct material.
Reduce time spend validating and reconciling.
 Leverage the scale of global supply chain through timely visibility to management metrics; reduce
cost of regulatory compliance
Value drivers/KPIs
 Reduced cost of manufacturing planning
 Reduced cost of manufacturing analytics
Innovation scope
(now and future)
E2E solution
supply chain
Value potential 5
Feasibility 5
Low High
1 5
Low High
1 5

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