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cleanFiles/bookmap_Introducing_the_Industrial_Manufacturing_I_en-US_learning-sap-com_lsc-prod.zip (MMCP-DROPZONE) - 2024-12-20T12:50:16.000Z

Explain How SAP Creates Value For Industrial Manufacturing

<div id="content"><div class="parentsection"><div class="section"><div tabindex="0"><h3></h3></div><p tabindex="0">This video will equip you with the knowledge and tools to transform products, services, and IT operations while staying competitive. We will cover key trends shaping the Industrial Manufacturing industry and SAP's best-of-suit solutions for the Industrial Manufacturing industry value chain.</p><div class="note"><div class="noteTitle"><span class="noteIcon"><img title="Note" src="/icons/note.svg"></span><span class="noteTitleText">Note</span></div><div class="noteBody"><p tabindex="0">SAP employees and official SAP Partners can download <a target="_blank" href="https://dam.sap.com/mac/app/p/pdf/asset/preview/4yv6Va7?h=&amp;ltr=a">the slide deck.</a></p></div></div><div class="kalturaVideoLessonWrapper"><div aria-label="" class="kalturaVideoLessonContainer" data-testid="video" id="1_g3jyf912"></div></div></div></div></div>

SAP Value Creation for the Industrial Manufacturing Industry

Introducing the Industrial Manufacturing Industry

Exploring SAP Business Capabilities for Industrial Manufacturing

The industrial manufacturing industry has faced several challenges over the past few years. Supply chain disruptions, unpredictable demand, the trend towards near-shoring and on-shoring, has caused manufacturers to look to new technologies to enable their growth through uncertainty. When surveyed, our mid-market manufacturers named increasing automation within business processes as their top priority for improving efficiency. This was followed by cost control and spend management and making operational processes more sustainable. With a quick and easy implementation of SAP S/4HANA Cloud, public edition that follows an industry standard approach, mid-sized companies can reduce their total cost of ownership so that the company can continue to focus on increasing the efficiency of their business processes. What are we hearing from our mid-market industrial manufacturing customers? customers. They expect uncertainty in their business. What they are asking for now is tools that can allow them to quickly replan when there is a change in supply or demand. They continue to be concerned with their bottom and top line and knowing where the money is flowing in and out of their business. Finding IT talent to maintain and evolve systems that are aging out of support is becoming more difficult. Customers are demanding that manufacturers evolve how they offer their products, often requesting to switch to usage-based models, which will reduce capital expenses for the end customer and share risk between customer and manufacturer. Manufacturers must support made-to-stock, made-to-order, configured-to-order, and engineered-to-order processes with the same systems. Finally, mid-market industrial manufacturers want to focus their efforts on their core businesses, delivering exceptional value to their end customers, not on IT infrastructure. Here is a snapshot of some of our customer references. Most of the customers on this page are within the mid-market space with ambitions to grow organically or via acquisitions. Oftentimes our customers are looking at consolidating ERP systems. Acquisitions of individual manufacturing sites or other companies often leads to an accumulation of ERP systems. To highlight a few, Comax is an example of customer with 10 separate ERP systems across their business. They selected S4 HANA Cloud, public addition to be their single company-wide ERP solution. This allowed them to move away from fragile interconnections between systems and reduce time spent on manual process for repetitive tasks. In the case of Briggs of Burton, they needed to modernize their financial systems first. They implemented S/4HANA Cloud, public edition specifically to decrease effort and time required to close monthly and quarterly financials. The smart press shop story is borrowed from the automotive industry, but the processes executed within this business are very similar to a component manufacturer within industrial manufacturing. In this case, the company is acting as a subsidiary of two larger companies. S4 HANA Cloud, public edition along with other industry cloud solutions, provides this plant with the automated processes they need to implement a completely paperless factory. The current business trends in high-growth, mid-market industrial manufacturing companies includes topics such as near-shoring or on-shoring. This is driven by recent supply chain disruptions and cost increases within regions where labour was previously much cheaper. The cost of capital is also increasing as central banks increase their own interest rates. High IT costs and long implementation times for projects continue to be a recurring issue. Now let's discuss some of the ambitions manufacturers have in this space. Manufacturers need to implement various modes of manufacture based on their customer segment, so being able to make highly configurable products while being profitable and predictable is critical. Customers and product development teams are pushing towards everything as a service business models, which require changes in capabilities provided by the Information Technology Group. Mid-market manufacturers must continue to remain agile when going through acquisitions, divestitures or entering new markets. And leadership needs a real-time view of their business so that they can make data-informed critical decisions around running their business. Legacy ERP systems are causing several issues which become apparent when a manufacturer acquires a new business or a factory. Legacy ERP systems are often unable to provide real-time views into financial performance or resource utilization. Add to this the cost of maintaining such system and we can see a compelling need for manufacturers to update their technology stack. SAP S4 HANA Cloud Public Edition addresses the need of the mid-market manufacturer across the value chain. We will cover each areas in the following slides, but at the highest level, SAP provides the ability to run their current operations with greater speed and visibility. By running on an industry standard set of predefined business processes, IT can change its focus on providing innovative solutions to the business rather than implementing and maintaining business processes from scratch. With a solid core from SAP, manufacturers are more able to scale and achieve their growth ambitions. Running industry standard, manufacturing specific process frees resources to work on value-added capabilities. Pre-built functionality helps the manufacturer more quickly evolve and take advantage of emerging opportunities. Because much of the business is run via automated process, operational analytics will allow leadership to manage their business by exception, focusing their attention only on areas requiring further investigation. This concludes part one of this session. Let's look at these business capabilities in more detail in the second part. Thank you for watching and looking forward to see you again in the following part of this session.