Open SAP IOT

Unit 1: Introduction to the Internet of Things

2PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Introduction to the Internet of Things
What’s new in this course?
Update
▪ Internet of Things
▪ IoT in the cloud and at the edge
▪ IoT and SAP business solutions
▪ Industry 4.0 and the future of IoT
▪ Product demo
▪ Customer examples
▪ Common use-case scenarios

What is IoT
…and why should you care?

What is IoT?
“The Internet of Things (IoT) is the network of physical objects that contain embedded
technology to communicate and sense or interact with their internal states or the external
environment.” Source: Gartner
“The Internet of Things (IoT) is a system of interrelated computing devices, mechanical and
digital machines, objects, animals or people that are provided with unique identifiers (UIDs) and
the ability to transfer data over a network without requiring human-to-human or human-to-
computer interaction.” Source: Wikipedia
“Everyday devices equipped with sensors and connectivity to work together, understand what
we’re doing, and operate automatically to make our lives easier.” Source: Digital Trends

Industrial revolutions – from industry 1.0 to 4.0
First
Mechanical Power
Second
Mass Production
Third
Digital Revolution
Fourth
Internet of Things
1800 1900 2000
Division of labor and mass
production with the help of
electrical energy
All devices are
connected
Electronic and IT
systems that further
automate production
Mechanical production
facilities with the
help of water and
steam power

Building blocks of IoT
Sensor Edge Cloud

What is a sensor?
The sensor transmits the information as digital signals to an
edge or cloud solution that ingests and analyzes the data.
A sensor is a small device that identifies information from
its physical surroundings.

Sensor measurement examples
Sound
Chemicals
Electricity
Position
Motion
Vision
Humidity
Pressure
Temperature

Technical vs business values – Weight of cement in a silo
▪ A radar depth sensor can measure the distance from the
sensor to the upper material plane in the silo
▪ The sensor can only provide the distance. The business
scenario might need:
− Material volume
− Material weight
− Material consumption rate
▪ In order to calculate the volume of cement we need to know:
− Exact position of sensor inside the silo
− Silo shape and dimensions
− Cement type and density
ROOF
HEIGHT
EAVE
HEIGHT
PEAK
HEIGHT

Cloud computing and edge processing
Cloud Computing
Providing data storage and
processing on a network of
remote servers
Edge Processing
Data processing locally in
a device at the edge of the
network

What is edge computing?
IoT edge computing describes the capability
of processing, storing, and analyzing sensor
data closer to the source of data, to enable
faster decision-making and operate with
intermittent connectivity to the cloud
Edge

What does the edge look like?
IoT Gateways
(e.g. Intel, Dell, Cisco)
Remote servers
Raspberry Pi, etc.Industrial PCs
+
Physical Edge Location / Device

Unit Summary
▪ What IoT is
▪ IoT history and industrial revolutions
▪ IoT sensors
▪ Cloud and edge
Unit summary and looking ahead
Looking Ahead
▪ Unlock the Intelligent Enterprise with SAP IoT
✓

Thank you.
Contact information:
open@sap.com

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Unit 2: Unlock the Intelligent Enterprise with SAP IoT

Unlock the Intelligent Enterprise with SAP IoT
Experience and operations
Experience Operations

The Intelligent Enterprise
Experience OperationsIntelligence
O
Data
X
Data

Experience data
O
Data
X
Data

Intelligence
O
Data
X
Data

Operational data
O
Data
X
Data

SAP product portfolio
O
Data
X
Data
Business Technology PlatformQualtrics Intelligent Suite

How does IoT, cloud, and edge fit?
Data-driven insights
Intelligent Robotic Process Automation
Artificial intelligence
IoT cloud & edge
O
Data
X
Data
Business Technology PlatformQualtrics Intelligent Suite

Situational Awareness with IoT Data
for a Step Change in Productivity

IoT-Enabled Connected Processes Provide
Superior Customer Experience

Continued Business Innovation
to Enable New Business Models
and Revenue Streams

SAP Internet of Things portfolio
SAP Leonardo IoT
SAP Edge Services

SAP Internet of Things portfolio built on one digital platform
SAP Leonardo IoT
SAP Edge Services
One digital platform

Cloud-to-cloud and edge interoperability
SAP Leonardo IoT
SAP Edge Services
Open ecosystem &
partnerships

Empowers business processes with insights derived from IoT data
SAP Leonardo IoT
SAP Edge Services
Open ecosystem &
partnerships
Customer Experience
Manufacturing
& Supply Chain
Digital Core
People
Engagement
Network & Spend
Management

Extend your business processes to the edge
Edge
Hybrid
Cloud
SAP Leonardo IoT
SAP Leonardo IoT Edge
Customer Experience
Manufacturing
& Supply Chain
Digital Core
People
Engagement
Network & Spend
Management

Unit Summary
▪ The Intelligent Enterprise
▪ Situational awareness
▪ Superior customer experience
▪ New business models
Looking Ahead
▪ IoT in the cloud
✓

IoT in the Cloud
Intelligence with SAP Leonardo IoT
Customer
Experience
Manufacturing
& Supply Chain
Digital Core People
Engagement
Network & Spend
Management
SAP Leonardo IoT
EMBED EXTEND EVOLVE EDGE-ENABLED

IoT in the Cloud
Turn signals into contextual data
Physical
Asset
SAP Leonardo IoT data processing
Cloud & Device
Connectivity
Master Data
Association
Data
Transformation
Big Data
Storage
Business
Process
Example Raw Sensor Data Business Context Transformation Business Insight
Replenishment
Optimization
Silo / container empty
space distance
▪ Material ID
▪ Plant & storage location
Calculate material
volume over time
Consumption rate
Marketing Performance
Evaluation
Cooler door state (on/off) ▪ Business partner
▪ Current promotions
Calculate device-
consumer interactions
per hour
Marketing effectiveness
Data
Analysis
SAP Leonardo IoT enables the transformation of IoT sensor data into business outcomes
by associating and analyzing it with relevant business context

IoT in the Cloud
Example – Replenishment optimization
Collect data from
receptacles e.g. fill
level
Monitor consumption
rates with streaming
rules
Low fill level
Automatic purchase
requisition
(Action)
Supplier receives
sales order
Just-in-time delivery
Just-in-time
replenishment and
optimal storage
conditions
Sensors and Receptacles
SAP Leonardo IoT
Supplier

IoT in the Cloud
Main services
IoT-Embedded
Intelligent Suite
Smart Connected Devices
IoT-Enabled
Customer Apps
Standalone IoT-
Enabled
Business Apps
Analytic Services
Streaming Rules &
Rules on Persisted Data
Event Services
Actions, Integration &
Decision Support Services
Data Ingestion & Big Data Storage
SAP Leonardo IoT
Enablement of the Digital Twin
Microsoft
Azure
Amazon
Web Services

IoT in the Cloud
Device onboarding, connectivity, and lifecycle management
Connect and manage millions of devices using industry-proven, highly scalable services
Analytic Services
Streaming Rules &
Event Services
SAP Leonardo IoT
Capability Highlights
▪ Onboarding & Device Management
− Simple and secure onboarding at scale
− Integrate existing data historian
− Integrate device management of hyperscalers and sensor clouds
− Securely connect to remote devices over a broad variety of IoT
protocols with SDK to enable additional protocols
▪ Lifecycle Management
− Lifecycle management at scale for devices from onboarding to
decommissioning
− Lifecycle management for enriched semantic business context
across things, master data (BUPA), and geo locations

IoT in the Cloud
Data context and transformations
Enrich and transform the time-series database on its business context and location
Analytic Services
Streaming Rules &
Event Services
SAP Leonardo IoT
▪ Master Data & Semantics
− Additional context through enriched master data integration with
business partner, geo location, and customer master data support
− Provide device and sensor semantics based on models, time
series, and master data
▪ Geo Services and Floorplan
− Manage and consume points of interest, areas of interest, and
floorplans
− Support of space hierarchies
▪ Derive & Transform Data
− Define continuous transformations or calculations on time-series
data using an easy to use formula editor
− Turn singular data points into meaningful business trends

IoT in the Cloud
Data ingestion and Big Data storage
Secure, flexible, reliable, and cost-effective services for IoT data ingestion and storage
Analytic Services
Streaming Rules &
Event Services
SAP Leonardo IoT
▪ Data Ingestion
− Validation of incoming data
− Flexible mapping from device model to thing model
− Harmonize different sensor types in a semantically aligned model
− Human-readable master data for mappings
▪ Big Data Storage
− Automatic data tiering considering hot, warm, and cold storage
− Hot storage: High-performance, flexible selections with full SQL
− Warm storage: Retention period of multiple months
− Cold storage: Retention period of multiple years
▪ Time Series Management
− Integrated Big Data, multi-tier time-series management
− Simple APIs to transparently access raw data in warm and cold
store or to run analytics on time-series aggregates

IoT in the Cloud
Data analysis, events, and actions
Gain actionable insight by analyzing and evaluating streamed and persisted data
Analytic Services
Streaming Rules &
Event Services
SAP Leonardo IoT
▪ Analytic Services & Aggregation Management
− Define data aggregates based on dimension, measures, and roles
− Offer dedicated calculation views for live data connection from
SAP Analytics Cloud (InA adapter)
▪ Streaming Rules & Rules on Persisted Data
− Fast processing of streaming rules in the ingestion pipeline for
thing properties and geo fencing
− Rules processing on persisted data with time windows and
scheduling
▪ Event Services
− Keep track of time series-related event history, severity, and status
with pub/sub capability on the rule processing results
▪ Actions, Integration, & Decision Support Services
− Action-driven business integration to embed IoT in LoB scenarios
to provide IoT context to business processes and decision support
for response options

IoT in the Cloud
Customer example – Zentis
Ensure adequate product
supply by monitoring
consumption rates
Maximize sales with
just-in-time inventory
replenishment
Reduce risk of product
spoilage by ensuring optimal
storage conditions
Increase customer
satisfaction through
first-rate user experiences
Transform business by digitizing insights into non-discrete product quality and consumption

IoT in the Cloud
Unit Summary
▪ SAP Leonardo IoT
▪ IoT business outcomes
▪ Data contextualization
▪ IoT cloud services
Looking Ahead
▪ IoT at the edge
✓

IoT at the Edge
SAP IoT portfolio
SAP Leonardo IoT
Open ecosystem &
partnerships
SAP Edge Services
Customer
Experience
Manufacturing
& Supply Chain
Digital Core
People
Engagement
Network & Spend
Management

IoT at the Edge
SAP Edge Services – Value propositions
SAP Edge Services
▪ Improve customer experience and outcome
by executing business processes locally, even
with intermittent connectivity or when offline
▪ Make decisions in real time by processing
and analyzing data at the intelligent edge
without latency
▪ Reduce data transmission and
communication costs through data throttling
and optimization of the upstream channel
Customer
Experience
Manufacturing
& Supply Chain
Digital Core
People
Engagement
Network & Spend
Management

IoT at the Edge
Scale the cloud to the edge with SAP Edge Services
Physical edge locations close to the source of IoT data
Vessels on the
high seas
Oil rigs &
drill ships
Retail
stores
Tanks going
dark
Manufacturing
assets
Cranes
Data Volume
& Bandwidth
Capacity
Intermittent
Connectivity
Real-Time
Decision
Making

IoT at the Edge
Example – Extend SAP Field Service Management to the Edge
Persistency
service
provides
access to IoT
data locally at
the edge
EBF service
triggers
service call
Operator (customer)
needs to ensure
equipment operational
issues are identified and
resolved in a timely
manner
Service
technician
accesses IoT
data to
accelerate the
investigation
Cloud
SAP Edge Services
Edge Location
Equipment or products
at customer site
Collect live
usage data
from
equipment or
products
Streaming service
detects abnormal
equipment
conditions
SAP Field
Service
Management
Planning &
dispatching
agent assignes
service call to
service
technician
Service
technician
accepts the job
and travels to
customer site

IoT at the Edge
Local compute, persistency, and business transactions at the edge
Enables powerful microservices to be deployed at the edge of computing devices
to extend the processing power of the cloud to the edge
Essential
Business
Functions
Service
Streaming
Service
SAP Cloud
Platform
IoT Service*
SAP Edge
Services
Policy Service
Persistence
Service
Custom
Edge
Service
IoT Gateway or Edge Server
Sensors and Devices
* SAP Cloud Platform Internet of Things for the Cloud Foundry Environment
▪ Police Service
− Deployment and lifecycle management of edge services
▪ Essential Business Functions Service
− Provides business context (data and processes) at the edge
▪ Streaming Service
− Analyze IoT data streams in real time based on business
logic
▪ Persistence Service
− Locally store IoT data on IoT gateways
▪ Custom Edge Services, e.g. Predictive Analytics
− Deploy, execute, and integrate with business processes
Cloud
Edge

Essential Business Functions service provides business context data
and transactions at the edge from SAP ERP, SAP C/4HANA, and AIN
IoT at the Edge
Essential Business Functions (EBF) service
Essential
Business
Functions
Service
Streaming
Service
Persistence
Service
Custom
Edge
Service
Sensors and Devices
SAP C/4HANA
SAP ERP
SAP AIN
Extend business functional areas to the edge
▪ SAP ERP
− Plant Maintenance (PM)
− Inventory Management (IM)
− Materials Management (MM)
− Environment, Health, and Safety Management (EHS)
▪ SAP C/4HANA
− SAP Field Service Management
▪ SAP Asset Intelligence Network (AIN)
− AIN unstructured data such as manuals
− AIN structured data such as threshold values for equipment
operation
▪ Extensibility
− Repeatable architectural foundation and methodology to
extend other SAP and non-SAP functional areas to the edge
SAP Cloud
Platform
IoT Service*
SAP Edge
Services
Policy Service
Cloud
Edge

IoT at the Edge
Streaming service
Provides the ability to analyze incoming data in real time based on rules over time windows
Essential
Business
Functions
Service
Streaming
Service
SAP Cloud
Platform
IoT Service*
SAP Edge
Services
Policy Service
Persistence
Service
Custom
Edge
Service
Sensors and Devices
Cloud
Edge
Process IoT data in real time at the edge
▪ Streaming Rules
− Define rules on incoming or aggregated IoT data
− Trigger actions: Send events or field messages to endpoints,
change data sampling rates, or trigger business transactions
at the edge
▪ Data Throttling
− Set rates for IoT data samples stored at the edge and sent to
the cloud
▪ Integration with SAP Leonardo IoT
− Model sensors based on the IoT device model in the cloud
− Send IoT data samples or aggregates to the cloud for further
processing, e.g. in SAP Leonardo IoT
▪ Extensibility
− Flexible architecture allowing for pluggable custom extensions

Persistence service provides the ability to store data and host custom applications at the edge
IoT at the Edge
Persistence service
Essential
Business
Functions
Service
Streaming
Service
SAP Cloud
Platform
IoT Service*
SAP Edge
Services
Policy Service
Persistence
Service
Custom
Edge
Service
Sensors and Devices
Cloud
Edge
Store IoT and custom data and host custom applications
▪ Secure Data Storage
− Provide read-access to IoT data via REST and Java APIs
− Set data retention policies (days/rows) for IoT data
− Create a schema for custom tables und read/write custom data
− Leverage user identity and persistence (UIP) provider
▪ Host Edge Applications
− Acts as a secure generic database for custom edge
applications
− Enablement of custom edge dashboards
− Dynamic SQL APIs that allow a custom bundle to execute SQL
queries

IoT at the Edge
Custom edge services – Predictive analytics
Train predictive models in the cloud and execute them as custom services at the edge
Essential
Business
Functions
Service
Streaming
Service
SAP Cloud
Platform
IoT Service*
SAP Edge
Services
Policy Service
Persistence
Service
Custom
Edge
Service
Sensors and Devices
Cloud
Edge
Custom
Edge
Service
Deploy custom edge services from the cloud to the edge
▪ Custom edge services
− Load custom services into the Policy service and deploy them to the
edge
− Custom services can read IoT data from the Persistence service
− Custom services can ingest results back into the Streaming service
and trigger rules and business transactions invoking the EBF service
− Custom services can write results back into the Persistence service
for historical analysis
▪ Example: Predictive Analytics
− Trained predictive models, e.g. Python, R, or PMML, can be
deployed via the Policy service
− Predict and prevent incidents in real time by applying classification
models
− Use clustering to find previously unknown anomalies
− Application scenarios include predictive maintenance and predictive
quality

Equipment (Boiler)
at Customer Site (Edge Location)
Personas
Business
Scenario
Value
Drivers
Turn service call generation from
a manual process triggered by
customer self-reporting to an
automatic process driven by
SAP Edge Services
Enrich service call with relevant
IoT context to help dispatching
agent quickly assess the nature
of the issue
Enable service technician to
locally access IoT data stored at
edge to start a more effective
investigation
1 2 3
IoT Gateway Edge
SAP Field
Service Management
Temperature & Pressure Exceed
Threshold!
SAP Edge
SAP Edge Services
Automatically create a service call
in SAP Field Service Management;
enables service technician to
locally access equipment IoT data
at edge
As a service provider, configure Edge
Services for his customers, so that when
abnormal conditions are detected, service
call will be automatically generated
Monitor all equipment onsite and
ensure equipment operational issues
are resolved by service provider in a
timely manner
Eric, Edge Services Citizen
Developer at Alpha Boiler
Inc.
Rita, Planning and
Dispatching Agent at
Alpha Boiler Inc.
Dispatch service calls to
appropriate technicians using
SAP FSM app.
John, Service
Technician at
Alpha Boiler Inc.
Accept a service call assigned to
him and travel to customer site to
provide repair and maintenance
service
IoT at the Edge
Demo: automatically trigger an SAP C/4HANA field service call at the edge
Lisa, Equipment
Operator at Silicon Valley
Power

IoT based insights combined with business context deployed and run at the
manufacturer’s customers shop floors with offline capabilities
SAP Edge Services helps manufacturer take field service management to the next level
▪ Local event processing
and filtering even when
temporarily offline
▪ Business rules trigger
alerts for further service
prognosis
▪ Reduce downtimes of
productive machines and
systems
▪ Improved customer
experience through
personalized service
offering
▪ Transition to new pay-as-
you-go and rental service
business model
▪ Easy and fast integration
of machines and data
sources
▪ Identify anomalies and
reveal insights from cross-
plant analysis
▪ Control room and
customer dashboards for
insights into operational
data
▪ Capture data from
packaging machines in
working condition
Company Profile:
Industry:
Manufacturing
Headquarter: Italy
Size: Large
Enterprise
Solutions:
SAP Edge Services
PdMS
1 2 3 4
Devices / Edge
Locations
Resolved
Challenges
Business
Logic
Business
Outcomes
40% Downtime
reduction
5% (yty) Anticipated revenue
increase in services
IoT at the Edge
Manufacturer of Processing and Packaging Machines

Transforming from a hardware manufacturer into an integrated hardware/software solution
provider by turning raw equipment IoT sensor data into meaningful business processes
SAP Edge Services partners to provide integrated solution for their customers
▪ Monitoring IoT usage data
for equipment, such as
stencil printers.
▪ Upon detection of anomaly,
automatically create a
repair or maintenance work
order locally at the shop
floor.
▪ Help production engineers
identify and analyze
production orders and
customers impacted by
equipment breakdown, and
take appropriate actions.
▪ For partner: generate new
revenue streams by selling
the integrated solution to
other manufacturing
customers
▪ For partner’s manufacturing
customers:
1) Improve equipment
maintenance accuracy and
production line efficiency
2) Reduce potential
implementation time and
cost with a bundled solution
offering
▪ Manufacturing customers
struggle to maintain
equipment based on
actual equipment usage.
▪ In case of equipment
breakdown, lack of
immediate insights into
its impact on production
orders
1 2 3 4
▪ Manufacturing shop
floors can be defined as
Edge locations, where
production or assembly
of goods is carried out by
automated manufacturing
equipment, workers, or a
combination of both.
▪ SAP Edge Services are
deployed on top of the
partner’s edge sever
hardware
IoT at the Edge
An Electronics Contract Manufacturer in Greater China
Devices / Edge
Locations
Resolved
Challenges
Business
Logic
Business
Outcomes
Company Profile:
Industry: Electronic
Manufacturing
Headquarter: APJ
Size: Large
Enterprise
Solutions:
SAP Edge Services

Ensure financial transactions are available even with intermittent connectivity by utilizing
SAP Edge Services Essential Business Functions
SAP Edge Services provides essential business processes at sea
▪ At the edge, Essential
Business Functions
(EBF) ensure
synchronization of HR,
logistics and financial
transactions with ERP
▪ Costly satellite
connectivity with limited
bandwidth reserved for
critical vessel operations
▪ Improved productivity of
crew members
▪ Intermittent and high
latency connectivity
▪ Inventory management,
cash advances, crew
management
1 2 3 4
▪ 100+ shipping vessels
IoT at the Edge
A Top Private Shipping Group
Devices / Edge
Locations
Resolved
Challenges
Business
Logic
Business
Outcomes
Company Profile:
Industry:
Transportation
Headquarter: Greece
Size: Large
Enterprise
Solutions:
SAP Edge Services
(On-Prem)

IoT at the Edge
Unit Summary
▪ SAP Edge Services
▪ Essential Business Functions Service
▪ SAP Field Service Management at the Edge
Looking Ahead
▪ Innovate with SAP Leonardo IoT
✓

Unit 5: Innovate with SAP Leonardo IoT

Innovate with SAP Leonardo IoT
It’s all about the data
Customer
Experience
Manufacturing
& Supply Chain
Digital Core People
Engagement
Network & Spend
Management
SAP Leonardo IoT
EMBED EXTEND EVOLVE EDGE-ENABLED

Embed
Embed telemetry data into SAP LoB applications, like SAP S/4HANA, SAP
C/4HANA, or SAP Digital Supply Chain, for an IoT-enabled Intelligent
Enterprise suite.

Embed: delivery insights enabled by IoT
SAP Leonardo IoT
SAP S/4HANA
New outbound
delivery is created
Virtual
representation
of delivery in the
“IoT world” is
automatically
created
Delivery conditions are
automatically monitored
(based on rules & actions)
during shipping
New situation is
automatically triggered if
an anomaly is detected
(high temperature, shock,
etc.)
Notification of new
situation is
displayed to the
responsible sales
representative
Responsible sales
representative triggers
required follow-up activities
(send replacement order,
inform business partner,
etc.) to resolve the
situation
Delivery is
automatically
assigned to its
corresponding sensor
hardware
Optional: Business partner
automatically receives info
on anomaly via e-mail

Embed demo: delivery insights enabled by IoT

Extend
Enable developers to extend existing SAP business processes by
gaining information and insights from previously unconnected
devices (e.g. machines, products, assets), thereby extending the
value of existing SAP applications and processes.

Extend: replenishment optimization with IoT
Collect data from
receptacles e.g. fill level
Monitor consumption
rates with streaming rules
Low fill level
Automatic purchase
requisition
(Action)
Supplier receives sales
order Just-in-time delivery
Just-in-time
replenishment and
optimal storage
conditions
Sensors and Receptacles
SAP Leonardo IoT
Supplier

Evolve
Empower partners and customers to pursue open innovation and
create new IoT-enabled business models, in the context of SAP
business systems, while keeping core business processes stable.

Evolve: usage insights for marketing and service management
Sensors and Power Tools
SAP Leonardo IoT
Supplier
Determine X,Y,Z coordinates
(Derivation / Transformation rules)
Monitor drilling data
(Streaming Rules)
Analytics based
on persisted drilling data
triggers an event that the drill
should be replaced
Optimize service and
product proposals
based on drill usage
Maximized brand and
service experience
Service
Ticket The event triggers an
action of creating a
service ticket in the
SAP C/4HANA system

Edge-enabled
Provides intelligent data processing at the edge orchestrated from
the cloud. SAP Edge Services runs business transactions correlated
with device data, close to the source of IoT data, at the edge.

Edge-enabled: plant maintenance in high latency or temporarily disconnected locations
Accelerate local edge
applications
Automatic triggering of
business processes at
the edge
SAP ERP
Environment with
intermittent connectivity
Remote worker need to
access work orders despite
latency or connectivity
Up-to-date inventory can be
retrieved
Repairs can be completed
without interruptions
Data Center
SAP Edge Services
Edge Location
Offshore plants

• Embed
• Extend
• Evolve
• Edge-enable
Looking Ahead
• Industry 4.0 and the Future
Unit Summary

Unit 6: Industry 4.0 and the Future

Industry 4.0 and the Future
Main IoT trends in 2020
5G Cellular
Communication
Data Processing
at the Edge
Fourth Industrial
Revolution

Why should I care?
3.7T
value creation potential
of customer
implementing
Industry 4.0 in 2025
75%
of IoT decision makers see
high value by embedding
IoT capabilities into critical
business systems
5G communication will
be up to 100 times faster
than current 4G
100x

What is 5G?
▪ 5G is the fifth-generation wireless technology for digital cellular networks that began wide deployment in 2019
▪ 5G networks provide ultra-fast communication at scale with ultra-low latency, enabling near real-time
processing of data
▪ Analog voice ▪ Text messaging
▪ Digital voice
▪ Security
▪ Data & applications ▪ High speed data
for phones and
other mobile
devices
▪ Internet of Things
▪ Ultra-low latency
▪ Ultra-reliable
transmission
▪ Massive Internet of
Things scale
▪ Security by design
▪ High bandwidth
1G 2G 3G 4G 5G

Manufacturing market dynamics
Business
Pressure
Product
Excellence
Volatile markets
Demand volatility
Global competition
Innovation
Quality
Sustainability
Customer
Experience
Individualized
products & services
Consumption-based
Instant delivery
Technology Enablers
3D printing
Cloud scalability,
elasticity, availability
Autonomous
systems & robotics
Intelligent algorithms
Ubiquitous connectivity,
edge computing
Internet of Things
In-memory
computing, Big Data
Smart vehicle

Industry 4.0 basics
To remain competitive in the market, manufacturers worldwide will have to cope with the general global market trends,
which indicate that conditions for manufacturing in the coming 10-15 years are expected to change dramatically:
Industrial production requirements are changing → Automation
Increasing product complexity and variety → Mass customization/lot size one
Increasing speed of production and delivery → Faster product lifecycles
Increasing volume of data and ability to get the right information in time → Big Data
Increasing scarcity of resources → More efficiency
Increasing pressure to manufacture at more competitive prices → Growth of manufacturing networks

Engineer-to-order production
from MASS PRODUCTION
to INDIVIDULIZED PRODUCTS

Mass customized production
from TEMPLATE-BASED
to ADAPTIVE PRODUCTION

High volume production
from MANUAL LABOR
to AUTOMATED PRODUCTION

Intelligent manufacturing
from PAPER-BASED PROCESSES
to SMART FACTORY

SAP and Industry 4.0
Industry 4.0 building blocks
Industry 4.0 / Industrial IoT Themes:
▪ Intelligent factories use data and intelligence to run as
autonomously as possible and deliver customized
products at scale.
▪ Intelligent products are built and configured to meet
exactly what customers need.
▪ Intelligent assets are linked to all processes and are
dynamically maintained.
▪ Empowered people are equipped with all the tools
and information they need to do their best work.
Data-driven optimization at the
cloud and the edge requires adequate
data infrastructures to ingest, process,
store, analyze, and distribute the
enormous amounts of operational
data.
Intelligent algorithms and
applications working on industrial data
will be executed in the cloud and at the
edge close to the data depending on
desired latency, relevance, and time
horizon.
Modern manufacturing platforms
will integrate not only vertically but
also horizontally between different
domains and business systems.
Industry 4.0 / Industrial IoT Technology Foundation:

Industry 4.0 and the Intelligent Enterprise
Industry 4.0 by SAP
Artificial Intelligence
Data-Driven Processing
Device Connectivity
Customer and
Employee Experience
Sales Service
& Support
Marketing
Front Office
HR
IT
Procure
& Finance
BackOffice
Production
& Logistics
Supply Chain
Intelligent Product
Intelligent Factory
Intelligent Assets
Empowered People

Industry 4.0 themes
Customer and
Employee Experience
Sales Service
& Support
Marketing
Front Office
HR
IT
Procure
& Finance
BackOffice
Production
& Logistics
Supply Chain
Intelligent Product
Intelligent Factory
Intelligent Assets
Empowered People
Intelligent Asset
Intelligent Factory
Intelligent Product
Empowered People
▪ Agile manufacturing to deliver individualized products
(lot size 1)
▪ Transparent production and logistic operations
with automated production supply and execution
(including WIP)
▪ Intelligent data-driven quality control
▪ Handing over information from engineering to
manufacturing
▪ Understanding the business impact of engineering
changes
▪ OEM-agnostic equipment onboarding and connecting to
business processes and business networks
▪ Prescriptive maintenance and condition monitoring
leveraging the digital twin
▪ Ad-hoc decision support to manage unforeseen
events close to real time
▪ Workers protection – days without incident

The intelligent factory – Characteristics
▪ Focus on creating intelligent processes, products, and
equipment, and enable people to work in this
environment
▪ All components will communicate with each other as
naturally as in a social network, without human
intervention
▪ As sensor technologies become available, almost any
process can be enhanced
▪ Tight collaboration between factory workers and robots
▪ Routine tasks as well as hard manual work will be
taken over by machines
▪ Complex, experience-based tasks and decisions will
still reside with humans

The intelligent factory – Automation
▪ Robots will no longer be locked in their work cells, but
will co-operate with each other and/or with humans
▪ New hybrid approach, where several robots or humans
and robots are integrated in the production chain and
work jointly together
▪ An object (product being produced) can be directly
transferred from the robot body to the hands of the
human
▪ Knowledge-workers will be supported by appropriate
interfaces, providing them with assistance for
operations along the entire production chain
▪ Advanced human-machine interfaces for workers are
required, considering usability, safety, and health
conditions during human-machine interaction

Process example – Intelligent factory
Production Line: WIP
Component Warehouse
(Semi) Finished Warehouse
2 Material is picked
and staged to the
production line
4 Store finished
product in warehouse
Warehouse Management: Material Flow Manufacturing Execution: Production Flow
1
Machines triggers
request for material
3 Machine consumes
material
Transparent production and logistic operations with automated production supply and execution

Industry 4.0 – SAP approach
▪ EHS – Product Compliance Cloud
▪ Engineering Control Center
▪ Intelligent Product Design
▪ Product Configuration on Cloud
Platform
▪ SAP S/4HANA Manufacturing PEO
▪ Manufacturing Suite (OP)
▪ Digital Manufacturing Cloud
▪ SAP S/4HANA EHS Management
▪ Inventory Management
▪ Extended Warehouse Management
▪ Global Batch Traceability
▪ Global Track & Trace
▪ SAP S/4HANA Quality Management
▪ SAP S/4HANA PP/DS
▪ Asset Strategy & Performance Mgmt
▪ Asset Intelligence Network
▪ Asset Manager (Mobile App)
▪ Enterprise Asset Management
▪ Predictive Maintenance (OP, Cloud)
▪ Field Service Management
▪ Work Manager Mobile App
▪ SAP S/4HANA Plant Maintenance
▪ Product Configuration on Cloud
Platform
▪ Manufacturing Suite (OP)
▪ SAP S/4HANA Manufacturing PEO
▪ Digital Manufacturing Cloud
▪ EHS – Product Compliance Cloud
▪ Logistic Business Network
▪ Asset Manager Mobile App
▪ Work Manager Mobile App
Empowered People
▪ SAP S/4HANA
▪ Visual Enterprise
▪ SAP Leonardo IOT
▪ SAP Cloud Platform IoT Platform
▪ SAP Edge Services (OP, Cloud)
▪ Arkite: Human Interface Mate (HIM)
▪ 4tiitoo: Eye Tracking
▪ Kinematic Automation: Gesture Control
▪ Quadrica: 3D Factory Visualization for Maintenance
▪ 3DSignals Brown Field Machine Digitization
Foundation
Partner
Technology
Intelligent AssetIntelligent FactoryIntelligent Product

Industry 4.0 with SAP Leonardo IoT
EXTEND
Customer
Experience
Manufacturing
& Supply Chain
Digital Core People
Engagement
Network & Spend
Management
EMBED EVOLVE EDGE-ENABLED
SAP Business
Solutions
IoT
Enablers
Industry 4.0
Use Cases Intelligent
Factories
Intelligent
Products
Intelligent
Assets
Empowered
People

Open Industry 4.0 Alliance
SAP is founding member and leveraged
Open Industry 4.0 Alliance as catalyst
to accelerate Industry 4.0 sales pursuit For more info visit: www.openindustry4.com
Creating customer value through interoperable Industry 4.0-relevant solutions and services
in a common framework powered by an alliance of leading industry partners to drive the
digitization of the factory, plant, and warehouse of our customers
Subscribe to
common hybrid
software platform
architecture
Create common
semantics for
E2E (hybrid)
solutions
Create an
ecosystem
Ensure operator
& OEM
collaboration
Work together to
deliver customer
value

Additional IoT resources
▪ SAP Learning Hub

Open SAP IOT

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