They pursue five key

initiatives that require

Aerospace and Defense (A&D) companies need to transform their business and process models now to pave the way for a sustainable future through:
new business 1. Digitally enabled core processes 2. Generation of new business by offering new, innovative, data-driven services
capabilities along the
value chain.
Design and Build
Business Capture Design Build Responsive
Aftermarket Services Procurement Finance Human Resources
Program Delivery Supply Chain
Streamlined customer experience Design for product lifecycle sustainability Agile and responsive manufacturing network Demand-driven collaborative networks Mobilized and empowered teams Collaboration with external service-parts Strategic customer portfolio management Attract and secure top talent and identify
Mobilized and empowered program and operating costs Configurable product to shorten delivery time Improved supply chain predictability and Customer data flow across channels suppliers for rapid, high-quality delivery Instant analysis of profitability across succession needs
Customer manager Collaborative requirements engineering and Customer visibility of build progress delivery reliability Personalized service process Flexible procurement contracts aligned multiple dimensions Support flexible customer contracts
Understanding of program cost versus equipment definition New manufacturing capabilities, such as 3D Visibility into preferred supplier network Access to service knowledge database with end customer Support for on-demand soft close and Social collaboration among teams
budget R&D prioritization through enhanced market printing, to simplify design and reduce weight based on project or proposal Predictive analytics to anticipate demand billing compliance Train and certify workforce
centricity Customer-focused, contextual engagement analysis and simulation Early warning systems and real-time alerts and preposition services Capture and package the knowledge of
from sales to service Streamlined handover process using network-level intelligence Pay- for-performance contracts retiring employees

Visibility into program-specific business Collaborative project and resource planning Maintenance of production machines by Multitier supply chain risk, performance and Coordination and provision of third-party Management of a strategic and agile Management of increased financial risks Onboard and train employees quickly and
Digital partners with partners specialized partners capability analysis repair services and spare parts global supplier network accociated with new partrnerships seamlessly
Precise production forecast and flow-down Secured collaborative-engineering platform Extension of the supply chain to additive Flexible integration of (alternate) suppliers Online presence to support service and Flexible onboarding of (alternative) Instant analysis of profitability across Empower employees to make decisions in
business of contract deliverables Scalable platform, adapting to A&D manufacturing and local logistics providers support and spare parts store front suppliers multiple dimensions across network real time
Collaborative planning across program development resource requirements Contingent workforce network Data security and integrity for distributed Market exposure
networks ecosystem Distributed manufacturing logistics and track and trace Global track and trace for components

Simplified contractual framework Incorporation of value chain feedback and Simulation capabilities for resource On-demand additive manufacturing to reduce Tailor-made service offerings Procurement strategies for 3D- printed Inclusion of payment models for digital Train and certify workforce on new digital
Digital collaboration on customer state-of-the-art technologies shortages inventory levels Full transparency of product lifecycle service parts services into product calculation and technologies
Driving innovation 3D printing and virtual or augmented reality Automation with machines, robots, and Integrated material management from shop information Simplified sourcing of product and financial reporting Work with universities and external entities
Alignment of product configuration and to expedite prototype process artificial intelligence (AI) floor to warehouse with flexible, intelligent Use of IoT for predictive maintenance, service innovation from nontraditional Simulation and analysis to evaluate in a flexible way
innovation costing Product architecture to embed even more Network of machines by machine-to-machine replenishment maintenance cost forecast, and service suppliers financial implications of strategic business Share knowledge and build communities
Effective proposal development partner technology and software integration Improved visiblity support choices
IoT on production lines

Efficient routing of contract changes to
production network
Agile Alignment of customer communication,
supply chain, and sales planning
manufacturing
Joined evaluation and introduction of
customer configuration changes
Streamlined and fast introduction of
engineering changes
Simultaneous and highly efficient
manufacturing engineering process
Data collection and quality prediction
Maintenance schedule based on product
quality and not on cycles
Controlled resource consumption
Localized 3D printing
Digital multitier visibility and collaboration
Agile planning and response cycles,
connecting demand signal to shop floor
Integrated optimization
Proactive anticipation and handling of supply
shortages and schedule delays
Network for collaboration on equipment data
Seamless as-built information handover to
aftermarket services
3D printing for service parts
Agile, contractual enablement of global
supply chains with multitier supplier
management
Automated and simplified integration of
material suppliers
Optimization of working capital
Management of increased financial risks
associated with highly flexible supply
chains and manufacturing operations
Empower employees to make decisions in
real time
Manage external contractors flexibly
Build flexible and collaborative teams
Ensure workforce compliance

Software packaged for new offers versus
hardware only
New business Selling of digital services
Value selling and contract management
models (performance-based billing)
Aftermarket engineering services as strong
revenue stream
New revenue streams designed with
capabilities of Big Data and the IoT
Estimating of performance-based logistics
contracts
Availability of manufacturing parameters to
service processes
Sale of free capacity with constraint-based
production planning
Offering of more data about individual
products with track and trace
Monetization of supply chain capabilities sold
as services
Optimization of parts inventory with 3D
printing, availability-based service level
Alignment of supply network design, financial
and business planning
Delivery of performance-based service and
products as a service
Remote condition and performance
monitoring leveraging IoT
Predictive services
Digital value-add services
Efficient integration of contingent labor to
augment own workforce
Buying power as new procurement
service-based revenue stream
Talent with unique noncore skills to drive
new business ideas
Real-time financial controlling of
performance-based service contracts
Effective managment of revenue streams
Digital payment services
Management and compliance with digital
rights
Procure and manage contingent labor and
services for optimized service delivery
across regions
Identify, forecast , and address skill gaps
Train and certify workforce on new digital
technologies

Internet of Things Machine Learning Analytics Blockchain Big Data

Digital Innovation SAP Cloud Platform Analytics Services UX Services Mobile Services Security Services Collaboration Services
SAP Leonardo
Business Capture Program Delivery Design Build Responsive Supply Chain Aftermarket Services Procurement Finance Human Resources

Product lifecycle costing Product lifecycle costing Manufacturing execution Global track and trace Predictive maintenance and service Invoice matching Resume matching
Distributed manufacturing Manufacturing integration and Asset intelligence network Job matching
intelligence, plant connectivity
Predictive maintenance and service
Asset intelligence network
Distributed manufacturing
Innovation management Product stewardship network Quality issue management Integrated business planning Cloud for service Supplier collaboration Business planning and consolidation Core human resources and payroll
Enterprise project connection Strategic sourcing Supply network collaboration Collaborative supply chain Marketing, commerce Collaborative sourcing Digital boardroom Talent management suite
Cloud for sales Innovation management Transportation management Billing, charging Spend analysis Governance, risk, and compliance Time and attendance management
Commerce, marketing Engineering control center Extended warehouse management Service parts management Buying and invoicing for finance Human capital analytics
Extensions

Jam
Supplier management, sourcing
Global trade services Analytics cloud for predictive analytics

Collaborative finance
External workforce management


Shared service framework
Collaborative finance
Integrated business planning for sales
and operations

Enterprise portfolio and project Enterprise portfolio and project Manufacturing engineering Extended warehouse management Multiresource scheduling Financial planning and analysis
management management Constraint-based production planning Advanced ATP Billing and revenue innovation Accounting and financial close
Billing and revenue innovation Enterprise product engineering Production scheduling Constraint-based production planning management Treasury management
management Environment, health, and safety Asset operations and maintenance Receivables management.
Advanced available to promise (ATP) Environment, health, and safety Invoice management & accounts
Digital Core Digital manufacturing insights payable

SAP S/4HANA Project financial and logistics control Product development foundation Production orchestration and execution Inventory and basic warehouse Maintenance execution Operational purchasing Accounting and closing operations Time recording
Order and contract management Quality management Quality and maintenance management management Service agreement/warranty Invoice and payables management Accounting
Invoice management Inventory management and material Production planning (MRP on SAP Maintenance planning and scheduling Supplier management Cost management
valuation HANA) Order and contract management Procurement analytics Profitability analysis
Production planning Basic ATP

Studio SAP | 51467enUS (17/05) 2017 SAP SE or an SAP affiliate company. All rights reserved. * Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA and LOB/cloud capabilities.
 They pursue five key
initiatives that require
Aerospace and defense (A&D) companies need to transform their business and process models now to pave the way for a sustainable future through:
new business 1. Digitally enabled core processes 2. Generation of new business by offering new, innovative, data-driven services
capabilities along the
value chain.
Design and Build
Business Capture Design Build Responsive
Aftermarket Service Procurement Finance Human Resources
Program Delivery Supply Chain
Streamlined customer experience Design for product lifecycle sustainability Agile and responsive manufacturing network Demand-driven collaborative networks Mobilized and empowered teams Collaboration with external service-parts Strategic customer portfolio management Attract and secure top talent and identify
Mobilized and empowered program and operating costs Configurable product to shorten delivery time Improved supply chain predictability and Customer data flow across channels suppliers for rapid, high-quality delivery Instant analysis of profitability across succession needs
Customer manager Collaborative requirements engineering and Customer visibility of build progress delivery reliability Personalized service process Flexible procurement contracts aligned multiple dimensions Support flexible customer contracts
Understanding of program cost versus equipment definition New manufacturing capabilities, such as 3D Visibility into preferred supplier network Access to service knowledge database with end customer Support for on-demand soft close and Support social collaboration among teams
budget R&D prioritization through enhanced market printing, to simplify design and reduce weight based on project or proposal Predictive analytics to anticipate demand billing compliance Train and certify workforce
centricity Customer-focused, contextual engagement analysis and simulation Early warning systems and real-time alerts and preposition services Capture and package the knowledge of
from sales to service Streamlined handover process using network-level intelligence Pay- for-performance contracts retiring employees

Visibility into program-specific business Collaborative project and resource planning Maintenance of production machines by Multitier supply chain risk, performance and Coordination and provision of third-party Management of a strategic and agile Management of increased financial risks Onboard and train employees quickly and
Digital partners with partners specialized partners capability analysis repair services and spare parts global supplier network accociated with new partrnerships seamlessly
Precise production forecast and flow-down Secured collaborative-engineering platform Extension of the supply chain to additive Flexible integration of (alternate) suppliers Online presence to support service and Flexible onboarding of (alternative) Instant analysis of profitability across Empower employees to make decisions in
business of contract deliverables Scalable platform, adapting to A&D manufacturing and local logistics providers support and spare parts store front suppliers multiple dimensions across network real time
Collaborative planning across program development resource requirements Contingent workforce network Data security and integrity for distributed Market exposure
networks ecosystem Distributed manufacturing logistics and track and trace Global track and trace for components

Simplified contractual framework Incorporation of value chain feedback and Simulation capabilities for resource On-demand additive manufacturing to reduce Tailor-made service offerings Procurement strategies for 3D- printed Inclusion of payment models for digital Train and certify workforce on new digital
Digital collaboration on customer state-of-the-art technologies shortages inventory levels Full transparency of product lifecycle service parts services into product calculation and technologies
Driving innovation 3D printing and virtual or augmented reality Automation with machines, robots, and Integrated material management from shop information Simplified sourcing of product and financial reporting Work with universities and external entities
Alignment of product configuration and to expedite prototype process artificial intelligence (AI) floor to warehouse with flexible, intelligent Use of IoT for predictive maintenance, service innovation from nontraditional Simulation and analysis to evaluate in a flexible way
innovation costing Product architecture to embed even more Network of machines by machine-to-machine replenishment maintenance cost forecast, and service suppliers financial implications of strategic business Share knowledge and build communities
Effective proposal development partner technology and software integration Improved visiblity support choices
IoT on production lines

Efficient routing of contract changes to
production network
Agile Alignment of customer communication,
supply chain, and sales planning
manufacturing
Joined evaluation and introduction of
customer configuration changes
Streamlined and fast introduction of
engineering changes
Simultaneous and highly efficient
manufacturing engineering process
Data collection and quality prediction
Maintenance schedule based on product
quality and not on cycles
Controlled resource consumption
Localized 3D printing
Digital multitier visibility and collaboration
Agile planning and response cycles,
connecting demand signal to shop floor
Integrated optimization
Proactive anticipation and handling of supply
shortages and schedule delays
Network for collaboration on equipment data
Seamless as-built information handover to
aftermarket services
3D printing for service parts
Agile, contractual enablement of global
supply chains with multitier supplier
management
Automated and simplified integration of
material suppliers
Optimization of working capital
Management of increased financial risks
associated with highly flexible supply
chains and manufacturing operations
Empower employees to make decisions in
real time
Manage external contractors flexibly
Build flexible and collaborative teams
Ensure workforce compliance

Software packaged for new offers versus
hardware only
New business Selling of digital services
Value selling and contract management
models (performance-based billing)
Aftermarket engineering services as strong
revenue stream
New revenue streams designed with
capabilities of Big Data and the (IoT)
Estimating of performance-based logistics
contracts
Availability of manufacturing parameters to
service processes
Sale of free capacity with constraint -based
production planning
Offering of more data about individual
products with track and trace
Monetization of supply chain capabilities sold
as services
Optimization of parts inventory with 3D
printing, availability-based service level
Alignment of supply network design, financial
and business planning
Delivery of performance-based service and
products as a service
Remote condition and performance
monitoring leveraging IoT
Predictive services
Digital value-add services
Efficient integration of contingent labor to
augment own workforce
Buying power as new procurement
service-based revenue stream
Talent with unique noncore skills to drive
new business ideas
Real-time financial controlling of
performance-based service contracts
Effective managment of revenue streams
Digital payment services
Management and compliance with digital
rights
Procure and manage contingent labor and
services for optimized service delivery
across regions
Identify, forecast , and address skill gaps
Train and certify workforce on new digital
technologies

Internet of Things Machine Learning Analytics Blockchain Big Data

Digital Innovation SAP Cloud Platform Analytics Services UX Services Mobile Services Security Services Collaboration Services
SAP Leonardo
Business Capture Program Delivery Design Build Responsive Supply Chain Aftermarket Services Procurement Finance Human Resources

Product lifecycle costing Product lifecycle costing Manufacturing execution Global track and trace Predictive maintenance and service Invoice matching Resume matching
Distributed manufacturing Manufacturing integration and Asset intelligence network Job matching
intelligence, plant connectivity
Predictive maintenance and service
Asset intelligence network
Distributed manufacturing
Innovation management Product stewardship network Quality issue management Integrated business planning Cloud for service Supplier collaboration Business planning and consolidation Core human resources and payroll
Enterprise project connection Strategic sourcing Supply network collaboration Collaborative supply chain Marketing, commerce Collaborative sourcing Digital boardroom Talent management suite
Cloud for sales Innovation management Transportation management Billing, charging Spend analysis Governance, risk, and compliance Time and attendance management
Commerce, marketing Engineering control center Extended warehouse management Service parts management Buying and invoicing for finance Human capital analytics
Extensions

Jam
Supplier management, sourcing
Global trade services Analytics cloud for predictive analytics

Collaborative finance
External workforce management


Shared service framework
Collaborative finance
Integrated business planning for sales
and operations

Enterprise portfolio and project Enterprise portfolio and project Manufacturing engineering Extended warehouse management Multiresource scheduling Financial planning and analysis
management management Constraint-based production planning Advanced ATP Billing and revenue innovation Accounting and financial close
Billing and revenue innovation Enterprise product engineering Production scheduling Constraint-based production planning management Treasury management
management Environment, health, and safety Asset operations and maintenance Receivables management.
Advanced available to promise (ATP) Environment, health, and safety Invoice management & accounts
Digital Core Digital manufacturing insights payable

SAP S/4HANA Project financial and logistics control Product development foundation Production orchestration and execution Inventory and basic warehouse Maintenance execution Operational purchasing Accounting and closing operations Time recording
Order and contract management Quality management Quality and maintenance management management Service agreement/warranty Invoice and payables management Accounting
Invoice management Inventory management and material Production planning (MRP on SAP Maintenance planning and scheduling Supplier management Cost management
valuation HANA) Order and contract management Procurement analytics Profitability analysis
Production planning Basic ATP

Studio SAP | 51467enUS (17/05) 2017 SAP SE or an SAP affiliate company. All rights reserved. * Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA and LOB/cloud capabilities.