Morgan Stanley estimates that in 2020 75 Billion Devices Will Be Connected To The Internet Of Things (IoT) (Source: http://www.businessinsider.com/75-billion-devices-will-be-connected-to-the-internet-by-2020-2013-10#ixzz30qERVUhx “Morgan Stanley: 75 Billion Devices Will Be Connected To The Internet Of Things By 2020”)

The data flowing between all connected assets will provide valuable insights based on location, readiness of an item, input on correct functioning, and many more. The information available in real-time will result in a better understanding of status, improving asset utilization and productivity, and delivering the foundation for more accurate decision making. Operational BI will benefit the most from the IoT enriched data, as it will deliver deeper insight and more accurate decisions. (Source: Press Release STAMFORD, Conn., March 18, 2014 “Gartner Says the Internet of Things Will Transform the Data Center”). But SAP believes that the real challenge will be to include the billions of devices seamlessly into the business processes as all of these devices will produce almost infinite decision points. These decisions need to be fully automated in order to deal with them efficiently. SAP is offering solutions that enable this automation to drastically reduce cost, increase revenue and enable new business models through IoT.

Major players of the beverage and other consumer products industries as well as retail and wholesale are realizing the potential of the IoT already. SAP Connected Retail is the key, describing a new breed of vending machines equipped with telemetry sensors, NFC payment options, barcode readers, and personalized touchscreens, connected to the Internet via the HANA Enterprise Cloud and integrated with SAP ERP. IoT data becomes a crucial part of consumables management, mobile payments, machine service, and customer loyalty programs. With a reduced set of functionality customer could reduce operating costs of vending machines by 35%.

SAP is seeing significant innovation momentum in vending as today’s vending machines can basically accommodate and sell any product, be it construction equipment, Rx Pharmaceutical, Cell Phones and Electronics as well as personal care and beauty, inclosing but expanding on classic food vending. SAP has demonstrated production grade machines at events like the Mobile World Congress in Barcelona and CeBIT in Hanover, where customers queued up to see one of the 300 demos per day.

Consumer products, wholesale, and retail companies are realizing the potential of Connected Retail as industrialized vending operations offer a new growth channel with higher margins. Vending can now offer products in locations brick and mortar cannot reach as well as a direct connection to the consumer that can be leveraged for real-time promotions, loyalty, marketing, product analytics, and other new business models like cell phone top up.

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Connected Retail is a concept broader than connecting vending machines and coolers to automate operations. It encompasses the end-to-end idea of “Synchronized Retail” enabled by IoT that bridges the silos of data across channels (instore, online, mobile etc.) to create a real-time enterprise. IoT-enabled synchronized Retail enables responsive supply chains, real-time demand-based replenishment, predictive maintenance and highly personalized consumer engagement.

Beyond Connected Retail, SAP is also enabling Internet of Things across various industries such as Automotive, Industrial Machinery, Oil and Gas, Mining etc. In Automotive, SAP has teamed up with BMW Group Research and Technology to create an innovative research prototype, called the extended ConnectedDrive system. In the future, drivers could receive profile based, personalized offerings, shopping recommendations, and reminders for important events, like business meetings, anniversaries or their next dentist appointments. (Source: Sleek. Savvy. Simple. The Future of the “Connected Car”  http://www.saphana.com/community/blogs/blog/2014/03/12/sleek-savvy-simplistic-the-future-of-the-connected-car)

SAP is also collaborating with the University of Guelph on a research project designed to demonstrate how the use of sensors for data collection increases energy efficiency benefits of green roofs while reducing maintenance and costs for building owners. (Source: SAP Customers Unlock the Power of Intelligent Things http://global.sap.com/news-reader/index.epx?category=ALL&articleID=21826&searchmode=C&page=1&pageSize=10)

SAP has looked extensively at this market and found that there is no solution on the market that can provide medium to large scale support across distribution, service and consumer interaction including Telemetry Hardware and Services out of one hand. On top with mobile payments and Onmi-Channel as well as Predictive Analytics, SAP is delivering innovations that are unique in orchestrating end-to-end operations across all aspects of next generation IoT enabled Automated Retail.

The Internet of Things revolution is here: Are you ready?

For more information visit: www.sap.com/internetofthings
Twitter:
@SAP_IoT
Watch a
demo video of connected vending.

Visit us at SAPPHIRE in Orlando
Christian Busch (Director, Internet of Things – Solution Owner Connected Retail)
Felix Löcher (Solution Manager, IBS Consumer Industries)
Charles Gadalla (Director, SAP Advanced Analytics)

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