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SAP’s Manufacturing Industries Forum: Be There Even If You’re Not There


DJ Paoni of SAP kicked off The Manufacturing Industries Forum in Lombard, Illinois. The lively welcoming address stemmed from the the lowly times in decades past for Chicago baseball fans. And now to the current success of the Cubs, and the powerful mobile footprint from fans during a single game. Translating that to SAP’s digital business framework and the “art of the possible” was something that resonated nicely with the crowd. Following that, were many other valuable sessions that I’ve summarized below:

Capturing Value from Digital Disruption in Manufacturing Industries

Richard Kelly, Partner, McKinsey

/wp-content/uploads/2016/06/pic2_974973.jpgManufacturing generates more data than any other sector and Richard has found that most clients have only captured around 1% of that data. The possibilities are endless with Industry 4.0 but manufacturers need to overcome these top 5 barriers to your left. With that – the top 5 elements to maximize value are:

1 Analyze entire digital thread

2 Focus efforts on high value applications

3 Leverage both short / long term infrastructure questions

4 Utilize Industry 4.0 ecosystem

5 Build organizational capability and adapt processes and culture

Winning the Digital Race with Live Business

Hans Thalbauer, GM of Extended Supply Chain, SAP Digitization

The economy is transforming into an End Consumer-Driven Economy and technology adoption is accelerating. Starting with Amazon’s goal to reinvent the marketplace with a whopping 30-minute delivery model. This causes supply chain complexity to skyrocket and the only way to deal with this is through massive digitizations of the Extended Supply Chain. The SAP Innovation Management demo showed how a chocolate factory can take an idea, manage the recipe, create a template for 3D printing, and open up an interactive dashboard to manage revenue expectations, day to day operations and much more – all in an instant.

Industry 4.0 and Digital Transformation Journey at Toyota Material Handling North America

Alan Cseresznyak, CIO, Toyota Material Handling North America

The largest forklift supplier in the world, TMHNA offers 12 different types of forklifts for sale. Industry 4.0 is a vision for advanced manufacturing and it constitutes digital transformation to achieve. To do so would mean:

  • Advanced Analytics
  • Capturing more Big Data
  • Human-Machine Interfaces using augmented reality to improve productivity
  • Digital-to-Physical Transfer to build products using 3D printing

But Toyota needed an easy to use fleet management system, ultra fast machine to machine communication, and fast implementation to market.

Leveraging the SAP HANA Cloud Platform, Fiori Launchpad, and SAP Lumira allows executives to visualize fascinating GPS enabled dashboards to track which shipments are out of cell phone tower ranges and target specific locations impacted. This allows dynamic retasking by seeing which trucks are overused/underused. They can also manage when service is needed – before its needed, to increase their competitive advantage.

ChiTech Academic Student Presentations


Pat McCarthy, SVP and GM, SAP Ariba

Focused on entrepreneurship and technology, SAP is working with these outside-the-box thinkers to help develop the next generation workforce through some problem-solving exercises, and the altruism that shines in these bright young stars provided comfort to the crowd on what the future holds:

  • Impacting Firearm Safety with Big Data

You’re 20 times more likely to get shot in America than any other country, but a firearm sensor solution could change that via an app that can lock and locate all registered guns.

  • Saving Lives in the Digital Enterprise

After learning how old some standard processes are for reporting incidents between ambulance and hospital, these students came up with a solution to transfer current condition of patient, location, and other vital data in an instant – fully built into an ambulance gurney.

  • Safety Insight with Internet of Things

Last year in the workforce there were 3 million accidents non-fatal and 4,700 more were fatal. But safety goggles called iGuardian can tract temperature, air quality, GPS, and provide alert abilities so workers can escape danger before it’s too late.

Healthcare Disruption Driving Digital Transformation: Life Science Companies Must Adopt New Business Models

Kevin Brophy, North American Lead Life Sciences, SAP

With a vision is to enable life sciences companies to transform business models, re-engineer business processes, and re-imagine work – the life sciences team describes how the SAP HANA Cloud platform can accomplish the task. By quantifying unstructured data, we can find problematic opportunities that a human just can’t.

As an example, the Advanced Track and Trace for Pharma solution (ATTP) simplifies and compiles serial coding for the pharmaceutical industry, which would normally be a difficult process to manage. And once compiled – the SAP Pharma Network stores the data in the cloud and allows easy access to all necessary parties. Then, a representative from Hospira shared a success story explaining how the company was built by acquisition over time. Because of this, many different systems were in play with silos everywhere, much of which was on paper. They chose to build a connected manufacturing system – all in SAP, about 5 years ago to stay agile and function efficiently.

Why Manufacturers Must Run Live: Customer Panel Discussion

Frank Platt Sr. SAP, Jay Monahan, Dell Services, James Zhang, Fujitsu, Stefano Pandini, Kennametal, Steve Tobalsky, Greenheck Fan

Internally within Dell its all about virtualizing the shop floor for clients, to capture data that would’ve otherwise been lost. From an IoT perspective they’re broken down in two focal areas: hardware and services.

Fujitsu is a technology and service company with digital transformation and IoT on the forefront of their focus. They work together with their customers to improve customer engagement, operational effectiveness, and product innovations through co-creation.

Kennametal is a global leader in the design and manufacture of engineered components, advanced materials, and cutting tools. Their challenge is determining how to connect with customers and best utilize the machines that they’re running. Optimizing technician service orders is a priority for efficient resolution management. And the techs use a sales automation tool to upload data to HANA for utilization. Recently going live with MII, they were able to overcome financial, and shop floor barriers because the business case to the CIO sold itself. Key Improvements included an increase in quality of data and more. Click here for more.

Greenheck is a manufacturer of air movement and control equipment. They wanted to improve their “field to factory” view by being able to take data from the field, capture it electronically through SAP, translate field terminology into a sales order with proper product IDs, and turn it into an order for the shop floor to fulfill. Quite the daunting task, but fortunately they’ve recently achieved their goal and already seeing a 5-10% process improvement thanks to real-time visibility. On top of that, they’ve reduced human lag time by introducing over a half dozen robots to various shop locations. The assigned tasks are programmed via SAP software.

Connect People, Machines, and Businesses Everywhere

Karsen Hauschild, Product Manager, SAP/wp-content/uploads/2016/06/pic4_974988.jpg

Did you know that networked enterprises are 50% more likely to have increased access to knowledge, higher profit margins, better information sharing, and be a market leader? Connecting people and teams to things, is key but knowing the goals for different areas are also crucial.

Enter the Asset Intelligence Network on SAP Hana. It’s basically a subscription service that moves from a request/receive model, to a publish/subscribe model. It brings together manufacturers, service providers, and operators of assets around the world. They can collaborate around shared equipment information to maximize availability, improve efficiency, and create new business models. With three different membership levels for customers who join the network, each has its own perks for not only signing up, but encouraging your customers to do so as well.

If you liked this, consider reading these:

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#SAPMIF16 Manufacturing Industries Forum Recap: Day 2

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