SAP Business Bydesign Road Map

SAP Business ByDesign Road Map

March 2019

CUSTOMER Legal disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SA P. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP’s strategy and possible future developments, products, and platforms, directions, and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP’s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

For all recent and planned innovations, potential data protection and privacy features include simplified deletion of personal data, reporting of personal data to an identified data subject, restricted access to personal data, masking of personal data, read access logging to special categories of personal data, change logging of personal data, and consent management mechanisms.

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement. 2 About SAP road maps

Companies today are planning their digital journeys – transforming business models, reengineering business processes, and reimagining work. SAP road maps highlight innovations that may help you plan and implement your digital journey. They span products relevant to lines of business in your industry and explain how our innovations may add value to your business. In our road maps, you can learn about our innovations along four different timelines: 1. Recent innovations for our products that have been launched in the past weeks or months and can already be purchased 2. Planned innovations for our products that are intended to be launched in the short term or midterm 3. Product direction, providing a long-term perspective on high-level development plans for innovations for our solutions – inspired by your requirements 4. Product vision, providing a high-level and long-term business perspective on innovations for our products

Product overview . SAP Business ByDesign – functional overview . SAP ERP for the cloud – positioning of SAP Business ByDesign

Vision and direction . Key trends, customer needs, and value proposition . Major product trends . Upcoming midterm and long-term innovation

Product road map . Recent innovations . Planned innovations . Product direction

Combining best-practice business processes and flexibility A quick-to-implement, holistic suite . Proven best practices for companies (36 built-in business processes) that enables companies to grow . Quickly configurable, easy to adopt and to extend . Always up-to-date: Automatic quarterly product updates deliver new features but keep custom extensions stable

Ease of use, insightfulness, and openness . Modern HTML5 user interface that is consistent across the entire suite . Built-in, real-time analytics with more than 500 standard reports, dozens of prebuilt KPIs, and Microsoft Excel integration . Connectivity: Open interfaces for quick connections to existing solutions and to build custom integrations

Global footprint and scalability . Expand business operations to international markets without barriers: – Deployed in 143 countries – Available in 12 languages – 19 SAP delivered (+17 prelocalized) and many more partner country versions (62+) . Scalable: Easy to go from 20 to10,000 users without any constraints

Proven best practices for companies . 40+ years of ERP experience distilled into 36 end-to-end business processes

SAP Cloud Quickly configurable, SAP Cloud Applications Platform easy to adopt and to extend Studio . Guided configuration in business terms instead of technical settings Key user . Extensive key user tools for easy adoption and tools simple extensions SAP Cloud . Comprehensive extensibility SDK for complex Business Platform extensions configuration Integration Always up-to-date . Automatic quarterly product updates deliver new 36 Best practice Business Processes features but keep custom extensions stable

Ease of use Digital board rooms, Cross-application global and predictive analytics . A modern intuitive user interface that is user experience

consistent across the entire suite for instant Internet of Things productivity Mobile apps and devices . Accessibility anywhere, anytime through mobile apps Machine learning and Business collaboration natural language Insightfulness and networks processing . Built-in, real-time analytics with more than 500 standard reports, dozens of prebuilt KPIs, and Microsoft Excel integration Process automation Integration openness across applications and extensibility Openness . Open interfaces for quick connections to existing solutions and to build custom Web shops and Partner applications integrations point-of-sales solutions and Web services

Globalization and microverticals

Australia Japan Austria Mexico SAP Belgium Netherlands standard Canada New Zealand localization China Spain (20) Denmark South Africa France Switzerland Germany United Kingdom India United States Israel Italy

Algeria Malaysia SAP Chile Morocco partner Colombia Nigeria localization and Costa Rica Norway prelocalized Egypt Philippines countries* Estonia Poland (33) Finland Portugal Greece Qatar 53 Honduras Romania Indonesia Saudi Arabia countries* Ireland Singapore Kenya South Korea Kuwait Sweden Latvia Taiwan * SAP’s prelocalized countries that can be scoped and in which SAP offers partial localization features. Lithuania Thailand Luxembourg United Arab Emirates © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement. 8 SAP Business ByDesign A full public cloud business management suite

Key capabilities A quick-to-implement, holistic suite that enables companies to grow

. Financials Get a real-time view of your financial situation, streamline your core accounting processes, and better manage cash and liquidity . Customer relationship management Expertly manage your marketing, sales, and service processes – and drive customer engagement – by integrating your front-office and back-office processes into one solution . Project management Organize projects of any size and complexity with integration across all functional areas to help your teams manage, deliver, and monitor projects in real time . Supplier relationship management Manage sourcing and contracting, including strategic sourcing, RFQ processing, and supplier base management, and empower employees with self-service procurement capabilities . Supply chain management Model your internal and external supply and integrate the value chain for cost transparency, up-to-date inventory valuation, and tight process integration . Human resource management Streamline HR processes, such as organization management, workforce administration, time and attendance, and employee self-service

Qualification SAP S/4HANA Cloud SAP S/4HANA Cloud, GB & LE single tenant edition SAP S/4HANA

LGB SAP Business Understand Identify Identify ByDesign need scope geo SME Power of & coverage SAP Business One Customer

Integrated suite or “suite-in-a-box” “Federated” suite of cloud solutions around core

Employee data time and labor management

Procure to pay (request for quotation, sourcing)

Order to cash (marketing to opportunity)

Order-to-cash (planning projects, executing projects) SAP Customer Experience

SAP Customer Experience Expense reimbursement & Order to cash (project planning)

Order to cash (warehouse, transportation)

General ledger (financial shared services) General ledger (closing cockpit)

Key needs of midmarket organizations SAP Business ByDesign value proposition Visibility and transparency Built-in analytics for real-time data across all Enabling intelligent decision-making in global functional areas of the business for intelligent operations decision-making

Efficient business processes Time-tested best practices connecting every Best-practice procedure automating repetitive tasks function across the company and enabling focus on value-adding activities A mobile-connected, empowered workforce that makes fast decisions

IT cost and security Technology that scales with the business and is Affordable, compliant, and secure digitalization always up-to-date with quarterly upgrades without the need for deep expert know-how Software that is easy to learn, quick to implement, easy to use, and simple to support

Next-gen user experience Process automation Next-gen best practices New way of interaction driven by natural Elimination of repetitive, predictable tasks New business models and processes enabled language processing and intelligent assistants to allow focus on value-adding activities by digitalization and new technology

Digital assistants Mobile Predictive analytics Machine learning Blockchain

Digital boardroom Internet of Things

SAP Cloud Applications SAP Cloud Platform Studio

Extend Extend in-app side by side Business configuration SAP Cloud Platform and key user tools Integration Configure and adopt Connect

1902 – Recent innovations 1905 – Planned Q2/20191 1908 – Planned Q3/20191 1911 – Planned Q4/20191

Compliance, business features, and Compliance, business features, and Compliance, business features, and Compliance, business features, and localization localization localization localization . IFRS 15 and ASC 606 enhancements for . IFRS 16 and ASC 842 enhancements, based . IFRS 16 and ASC 842 enhancements, . IFRS 16 and ASC 842 enhancements for general availability on customer feedback based on customer feedback general availability . Machine learning–based supplier invoice . Retrospective linking of preceding . IFRS 16 and ASC 842 enhancements, . documents in the sales and service process Returns for kits: Customer returns process based on customer feedback creation: Beta version chains flow . Production extensibility scenarios . Harmonize the language determination for . Monitor and manage business documents . Periodic campaigns with dynamic target . Israel as an SAP localized country process integrated output documents delivered by e-mail groups . Language adaptation tool User experience and analytics . South Korea as a prelocalized country . Resource availability calendar enhancements . UK digital tax . User efficiency improvement: . Multidimensional scales in price lists User experience and analytics Recently/frequently used UI screens User experience and analytics . User experience and analytics . Corporate dashboards by key users Semantic coloring . Trigger actions based on report results . . Standard content enhanced with semantic . Analysis pattern: Enhanced charting and Standard KPIs – initial KPI portfolio . Overview pages with enhanced analytics . coloring filtering SAP Business ByDesign Mobile: content . Standard KPIs – further enhancements . Best-practice KPI library for upload Infrastructure enhancements, such as right- . Standard KPIs – enhanced portfolio . SAP Business ByDesign Mobile: Push . SAP Business ByDesign Mobile: Additional to-left rendering . SAP Business ByDesign Mobile: Enable notifications for tasks scenarios Integration partners to copy and extend SAP-delivered mobile apps Integration Integration . Enhanced OData service access to business . OData enablement for tasks . SAP Business ByDesign and SAP objects Integration . SuccessFactors employee replication – . Publication of sample code on Github and . Predictive and planning scenarios based on Event notification in SAP Business ByDesign phased implementation corresponding explanations in the SAP integration with SAP Analytics Cloud . Web service APIs for bank statement and . SAP Cloud Platform Integration: Integration Business ByDesign community . API monitoring: Enhanced monitoring payment order integration scenarios such as package for SAP Subscription Billing capabilities for Web service APIs and treasury integration . Vertex/Avalara integration enhancements OData services . Enhanced Web service APIs for integration Release highlights 1902 with point-of-sales systems 1. This is the current state of planning and may be changed by SAP at any time without notice. © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement. 13 SAP Business ByDesign Product road map overview – Business process capabilities

1902 – Recent innovations 1905 – Planned Q2/20191 1908 – Planned Q3/20191 1911 – Planned Q4/20191

Suite in a box Suite in a box Suite in a box Suite in a box . Exclusions in pricing – Allow for best price . Configurable evaluated receipt settlement . Task view for contracts . Periodic campaigns with dynamic target selection in case of competing prices and (ERS) run . Approval process for change of supplier groups discounts . Machine learning–based supplier invoice master data . Collection management enhancements . Revenue recognition improvements for creation: Beta version . Retrospective linking of preceding based on customer feedback consolidation preparation . Harmonize the language determination for documents in the sales and service . Returns for kits: Customer returns process . Default template per supplier for scanned process integrated output documents, such process chains – for example, sales order flow supplier invoices as sales order, invoice, quote, delivery to opportunity Service providers . Approval process enhancements for: note, contract, and more . Monitor and manage business documents . Multidimensional scales in price lists – Creation of supplier master data delivered by e-mail, providing: . Resource availability calendar – Contracts – Visible alerts when there are errors with enhancements for distributing the resource outgoing e-mails Discrete industries workload as determined by the detailed – Report to view outgoing e-mails . Production extensibility scenarios project planning – Ability to resubmit failed documents in . Available-to-promise (ATP) enhancements – – Project task assignments batches check for purchase order acknowledgement – Period plans Discrete industries . Reporting capabilities for physical inventory count

Release highlights 1902 1. This is the current state of planning and may be changed by SAP at any time without notice. © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement. 14 SAP Business ByDesign Product road map overview – Legal compliance and localization

1902 – Recent innovations 1905 – Planned Q2/20191 1908 – Planned Q3/20191 1911 – Planned Q4/20191

International financial reporting standards IFRS IFRS IFRS (IFRS) . IFRS 16 and ASC 842 enhancements, . IFRS 16 and ASC 842 enhancements, . IFRS 16 and ASC 842 enhancements . IFRS 15 and ASC 606 enhancements based based on customer feedback based on customer feedback based on customer feedback and general on customer feedback and general availability Data security Localization availability . IFRS 16 and ASC 842 enhancements, based . Enhance support of compliance with GDPR, . Regular maintenance and legal change Localization on customer feedback based on customer feedback management for SAP country versions . Regular maintenance and legal change Data security Localization . Existing country version enhancements management for SAP country versions – Israel: SHAAM interface, Form 6111, . Existing country version enhancements . Enhance support of compliance with GDPR, . Regular maintenance and legal change based on customer feedback asset accouting reports – Japan: Consumption tax management for SAP country versions – Japan: Consumption tax – India: GST payment and receipt . Localization Existing country version enhancements – India: GST simplified tax return vouchers . Regular maintenance and legal change – Canada: Invoice enhancements – Mexico: Bank statement enhancements, – Mexico: Bank statement enhancements, management for SAP country versions – Italy: Tax exemption certificates continued continued . Existing country version enhancements: – India: GST return – China: Golden Tax enhancements – China: Golden Tax enhancements, – Austria: ERV JAB – Mexico: Bank statement enhancements – Italy VAT and withholding tax return continued . – India: Custom tax rate types Localization toolkit enhancements, based on enhancements – Italy: VAT and withholding tax return – UK: Quarterly fuel rate change customer feedback . Localization toolkit enhancements enhancements, continued . – Switzerland: QR code customer side Language adaptation tool enhancements . Language adaptation tool enhancements, – Switzerland: Swiss payment ISO20022 . . Localization toolkit enhancements: Mapping Brexit feedback and enhancements based on customer feedback . Localization toolkit enhancements of tax events to accounting . South Korea as a prelocalized country . Language adaptation tool enhancements, . Language adaptation tool based on customer feedback . Israel as an SAP localized country . Brexit readiness* . UK digital tax . VAT in Kuwait and Oman2 Release highlights 1902 1. This is the current state of planning and may be changed by SAP at any time without notice. 2. Subject to government notifications © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement. 15 SAP Business ByDesign Product road map overview – User experience and analytics

1902 – Recent innovations 1905 – Planned Q2/20191 1908 – Planned Q3/20191 1911 – Planned Q4/20191

Desktop Desktop Analytics Analytics . Corporate dashboards: Custom overview . User efficiency improvement: . Overview pages with enhanced analytics . Standard content enhanced with semantic pages centrally defined by key users Recently/frequently used UI screens content coloring . User efficiency improvement: Consistent . Trigger actions based on report results . Trigger actions based on report results, navigation from object work list to detailed . Standard KPIs – enhanced portfolio continued Analytics screen . Standard KPIs – further enhancements . Custom semantic coloring . Standard KPIs – initial KPI portfolio Analytics . Improved charting (scatter and bubble Mobile . Simplified search on KPIs and reports SAP Business ByDesign Mobile: Mobile charts, 100% stackbar chart) . SAP Business ByDesign Mobile: . Analysis pattern enhancements Enable partners to develop custom mobile Intelligent usage of device capabilities for – Interactive filtering apps using SAP Cloud Application Studio and lead and activity creation (for example, – Improved charting Mobile to extend SAP-delivered mobile apps from business card scans, phone calls) . Best-practice KPI library for upload – initial SAP Business ByDesign Mobile: . SAP Business ByDesign Mobile: Push KPI portfolio Infrastructure enhancements, such as right-to- notifications for tasks . Enhanced formula calculations left rendering and enhanced security settings

Mobile SAP Business ByDesign Mobile: Additional mobile scenario enablement, such as mobile leave requests, leads and new chart library

Release highlights 1902 1. This is the current state of planning and may be changed by SAP at any time without notice. © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement. 16 SAP Business ByDesign Product road map overview – Integration

1902 – Recent innovations 1905 – Planned Q2/20191 1908 – Planned Q3/20191 1911 – Planned Q4/20191

Analytics Openness Analytics Analytics . Upload cloud data sources using OData . Web service API portfolio enhancements, . Predictive and planning scenarios based . Further SAP Analytics Cloud content services based on customer feedback on integration with SAP Analytics Cloud . Enhanced OData service access to Openness Openness business objects: Focus on CRM and Openness . Enhanced OData service access to . Web service API portfolio enhancements in master data . Enhanced OData service access to business objects, continued the area of SRM and CRM: . Publication of sample code on Github and business objects: focus on CRM and . Publication of sample code on Github and – Purchase order corresponding explanations in the SAP master data corresponding explanations in the SAP – Purchasing contract Business ByDesign community . Web service to access incidents Business ByDesign community, continued – POS transaction . OData enablement for tasks . . OData API enablement for partner incident API monitoring: Reports to analyze the . Event notification in SAP Business usage of Web services content . API monitoring: Enhanced monitoring ByDesign – ability for customers to capabilities for Web service APIs and subscribe to business data changes (such Integration scenarios OData services as master data) and notify other systems in . SAP Business ByDesign and SAP . Publication of sample code on Github and their landscape SuccessFactors employee replication – corresponding explanations in the SAP guidelines and tools for phased Business ByDesign community, continued Integration scenarios implementation scenarios . Web service APIs for bank statement and . Vertex/Avalara integration enhancement: tax payment order integration scenarios such calculation of freight, and gross price as treasury integration handling . Enhanced Web service APIs for integration . SAP Cloud Platform Integration: Integration with point-of-sales systems package for SAP Subscription Billing

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© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement. Thank you. Follow us

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