 Hello everyone thanks for joining us. We'll continue the dialogue that started at the keynote. We got off to a really great start this morning at Sapphire in 2013 here. I am honored to be joined sitting to my immediate left, Adam Silver, the deputy commissioner and co and COO of the MBA. I've got Bill McDermott, co-CEO of SAP. I've got Jed York, the CEO of the 49ers and I've also got Kevin Plank of under Armour. I'm the only one who's out of CEO. You're working on it. Incoming. So we thought we'd put this session together for everyone and give you a chance to ask some questions directly to our special guests today. As I said we're off to a pretty exciting start seeing where technology and sports and sports gear and how that all touches us as employees and athletes and consumers and fans all comes together and I think that we've had some really good ideas thrown out there and we hope that you have a chance to ask some good questions to our panelists. I'd like to start it off by asking Bill just you know this was a pretty high-energy morning for you. We could tell out there the energy came across. What kind of takeaways over the highlights that you thought came across today? Well I think we redefined SAP as a business-to-business-to-consumer company. We're capitalizing on the trend for the millennials. You've got a couple of billion folks out there between 18 and 33 years old representing the largest demographic and target market on the planet Earth and I am fortunate enough to be with great leaders like Jed York, Adam Silver and Kevin Plank and I think it underscores the power of digitizing the relationship with your consumer, managing big data in a far more creative way than ever before with the power of HANA and really on an end-to-end basis creating an unmatched value chain which these guys have all done for their businesses and I'm truly honored to be in their company and their friendship. That's what I take away. Excellent, excellent. So to our audience here, let's start off with the first question. We're going to go to the back to my left. We may try the right. I'm sorry I thought we have one teed up. There we are to the right, right here. Thank you. Hi, I'm Michael Craigsman and a question for either Adam Silver or Jed York. What do you hope to get out of your relationship with SAP? What are the key bullet point highlights? Michael, I'll start. What we're hoping to get out of our relationship, we're beginning to realize already and that is making the rich statistics, the rich data of the NBA available to consumers on a global basis. So we're looking at a two-fold. First and foremost, we want better analytics when we're evaluating players, when we are building out our scouting and training regiments, those types of things and SAP has been able to help us develop that. We're only in our second year but I think we are light years ahead of where other teams are. Then when you're looking at building a new football stadium which will be open in 2014, you want to make sure that you can build out a technology stack in your building so you can be a software-driven stadium as opposed to a hardware-driven stadium. If you don't have the right back end, you can't allow your fans to get into the game the way we want them to get into the game. I think as Adam was saying, whether it's statistics, whether it's different camera angles, whether it's a ticketless stadium, a cashless stadium, whatever it is, whatever unique individual experience our 68,000 season ticket holders want, we want to be able to provide. I think SAP has been a fantastic partner in building out that infrastructure and allowing our consumers to choose their hardware and come to the building and then plug into the game. Thank you. We've got our next question. Now we'll go back. Hi, Laurie McCabe from SMB Group and great panel this morning. My question is for Kevin. Kevin, you said you had deployed SAP in about six weeks with no glitches, which seems like an enormous accomplishment. So I'm wondering what did you do? What helped you get through all that without any glitches? Yeah. Well, there was about two years of work on the front end of that that began with the process of a selection, making sure we had the right team, implementation, hiring. So we went public in mid-November of 2005 and then we flipped the switch in January 2006. And I mean, you've got to understand, again, the apprehension of a company that in our first reporting quarter, we're going to start by flipping this new switch. So I think that really speaks to the confidence that our team had in our own ability to execute. But that started with the partnership, the relationship from SAP of giving us the confidence to say, this is something that will work. So I think probably, I know a large part of the audience that we're speaking to today, are those entrepreneurs that are sitting there with saying, what's it going to mean for me to implement SAP? And we looked at it as a big company platform and we saw ourselves as, you know, at the time, a relatively moderately sized, you know, small business. The decision to say, you know what, we believe that one thing. And again, the discussion that Bill and I had was, I never wanted to limit my company is because we had been through that process of implementation after implementation and kept outgrowing it. And so looking and saying, within our industry, SAP was clearly the leader. And then more importantly, their ability to grow with us. Because, you know, our business is very different. You know, as we sit here, you know, seven years later from that decision to be a public company, where, and I say very different, you know, women's was less than 15% of our business. Today, it's nearly a third of our business and we've added a billion and a half in revenues. And people told us we couldn't be a women's brand. You know, footwear, we didn't even make footwear, we went public in 2005. And today, footwear, we continue to grow about 15%. We see footwear exceeding the size of our apparel business someday. So, you know, we're staying within our space. And again, this new world of digital sports, Armor 39 and reading and giving the feedback of biometric data and technology, you know, we could be a technology company in 10 years. And I mean that based off of, again, I use the word backbone that SAP gives us and all the other pieces from success factors to what we're doing with HANA and the other elements of SAP. And this isn't just a sell. This is we're a better business, we're a better company, because we don't have to worry about what's the next system, what's the new one coming in. And again, having that confidence with continuity of partnership, relationship, and frankly, of systems. Great. Thank you. Next question will go over here. Good morning, I'm Alan Bondi from Digital Clarity Group in the Pulse Network. A theme this morning in your panel was the power of data to change the experience, to change the look and feel of your products. This is a question for the whole panel. At what point do you think of yourselves as data companies? And if you're thinking about it right now, how is how are you looking at monetizing not just your experiences and your products that you're delivering, but that data? Yeah, maybe I could just start off on the data side. I also said this morning that 99% of the data in enterprises today is locked up in some corporate vault, and we call it dark data, because it's not adding any value back to the business. So the power of HANA is that it can get at that dark data and give you insights that you never even know you had because you haven't gotten at it, and it can see patterns in your company that you don't even know exist. Secondly, you can get the sentiment analysis from social networks that really gives you the voice of the crowd or the wisdom of the crowd on what are people saying about my brand? How are they enjoying the experience and what can I learn from them? But it also has a predictive analytics engine built into it. So once it takes all this data, social, structured and unstructured, it can give you a prediction about what you need to do for your customer to change the game. And I think that winning organizations like the NBA Under Armour and the San Francisco 49ers want to put that data to work for their constituents. I mean, I just, I look at the fan experience and you have the ability to use your smartphones as people are doing now, whether you're, you know, checking your emails, whether you're, you know, looking up data to figure out what questions you want to ask. You, we're, we're in a, in a world in a society that it's just information is at your fingertips. If that doesn't work inside of a sporting arena, whether it's an NBA arena, an NFL football stadium, you know, today it might be acceptable. I don't think that's going to be acceptable in the near future, if not the present. So I'm not necessarily looking at it today as how does this generate more revenue for us? It's really, how do we continue to get people to come to live sporting events, which to me is the most exciting place to watch a game, but you are, your information locked in most venues. So how do you now take that to the next level where you have more information inside the venue than anywhere else? And you're more plugged into the game inside the arena, inside the stadium than anywhere else. And I think in the future, that's really where you see a huge revenue explosion, because it's just easier to determine what 68,000 people want in our stadium, what 20,000 people want in an NBA arena. And you can again have an individual approach to everybody that's watching and consuming a game, whether you're in the arena or outside. And I'll add, I think Jed and I come at it from different perspectives because I'm the league person and he's a team person. So he's very, in terms of monetization, he's very focused on fans and seats in a stadium where, to your question, do we consider ourselves a data company? Increasingly a technology company, a media company becoming a technology company. So where Jed is talking about technology, using it to create a deeper fan experience in the stadium. For us, it's how do we create a deeper experience for literally billions of people who follow the NBA, who will never come within thousands of miles of an NBA arena. And for those fans, I think part of the way, ultimately to monetization, is we find ways for them to engage more deeply in the sport. And often that is through data, that they're going to consume our products in more ways, including buying more apparel, watching our old media telecast for a longer amount of time, staying online longer, playing fantasy games, by the way, maybe gambling on the NBA one day, which is illegal in a lot of places, but legal in a lot of markets where we operate. So data and technology are the way that our sport is consumed by the vast majority of our fans. And I'd end it with, I think everybody up here that we need data in SAP is killer at providing that. But every one of us is in a people business. Jed's been very clear and consistent about what it means from the customer interaction. Adam, I think being aware of where are you going from what the players need, what the teams need, where there's draft analysis and other things. But the comments I'll draw on was Bill's comments about trust. I've got a brand, which means if I'm relying on the fact that I think my logo is cooler than company A or company B or company C, I'm dead in the water. Because you're buying my product and you're probably paying a premium in price for it because of the trust that the consumer has in us. The fact that we're not going to violate that trust that when you buy it, it's a better product than they try. Is that what brands do is brands allow you to believe is that any product can, I can go run a sprint, I can go run a marathon at 10K, whatever the basis is. And with it, I can do this. But with the brand, I can do this because the shoe's going to make me a little faster. The pair is going to make me feel a little cooler, a little less clammy, a little more like I'm within myself. And we can never violate that trust. And so there's a lot of ways that we violate that trust. As a company, we keep these, again, I mentioned my whiteboards earlier. I keep them at the center of my whiteboards. I keep my job description. It says, build a great product, tell a great story, service the business, and build a great team of people that will help us do that. We're a product company first and foremost, but one of the best products we build is our stories. The way we compel the consumer to say, you don't need a cotton t-shirt. You need to try synthetic performance. And then you look at service. I'll tell you, a good lesson I learned, actually, before Under Armour, I worked in the restaurant business. And somebody taught me that the most expensive thing in any restaurant is an empty table. And I'll tell you, being in retail now, the most expensive thing in any retail store is an empty fixture. And so I can do all the great jobs of creating a great product and having people out there. But if my fixtures aren't there, and I've got empty shelves, and we've dealt with that over the years. So getting behind projects like SOAR that we implemented again, the partnership between IBM, SAP, and Under Armour to really get that allocation process where we can get product going. I mean, three years ago, we were less than $1 billion. Next year, based on our long-term outlook of 20, 25%, we're closing on $3 billion. 3x growth in three to four years. That type of trajectory is something that we're managing and having, again, that's where systems, technology, and data take a people company, a trust company, and really make it reality. Great. We'll go over here for our next question up front. We'll go to John. John Furrier with Silicon Angle, how are you? In sports, they talk about the modern error, moving into the modern error. And IT is transforming to a modern error. So Jed, you had success at the 49ers, the young organization, new stadium, obviously recent success on the field. But a lot of the transformation IT issues are organizational. So Bill, you and Jed could talk about the transformation to this modern era of business and computing. And what are the challenges, and how did you overcome them, Jed, in your organization, and some of your experiences, Bill, that you've had directly? Sure. Well, I mean, I think when I started to look at the way we scouted, the way we analyzed game film, the way we analyzed just clock management, game management, it was antiquated. So when you're looking at how do we get better? How do we get an edge in a game where there's a salary cap? We're all spending the same amount of money. We all basically have the same pool of coaches, of scouts, and things like that. Where do you go to get your edge? And I think it's how you use data and what data you have. That's how you get an edge. So three years ago, every team in the NFL was using beta to watch film. Yes, beta. Something that was developed before I was born. And that's not the right way to analyze data in the 21st century. So what we did was say, OK, how can we just build something like, let's just think this is Star Wars. This is Star Trek. This is what's in the future. What can we do? Tell me what you want to see as a general manager, as a scout, as a head coach. And we'll figure out a way to build it for you. Don't worry about it. You don't have to do it. And once you get your football guys to understand that this isn't something that they have to build out, they just have to dream it up, that's when you find the right partner and you start putting things together and know that it is malleable. It is something that can change over time. It's something that's adaptable. And it grows with your business. It grows with your team. And I think we're only at the beginning stages of what we can do with data in the NFL. And it will get so much better as time goes on. And the more and more people get comfortable with it, the more and more you're going to see used with every team. And ultimately, it's going to make the league a better product. It's going to make it more enjoyable for fans because you're going to have a smarter game and a more efficient game. And I was pretty open about it this morning on the strategy side. All of this comes down to leadership. You have to have technology to run your business and to serve your consumer, your fan, or your ultimate consumer of your service. But you also have to have leadership. And what we try to do is get a strategy together for our customers based on where the world was going and where they needed to go. And it's obvious here, they're consumers on the mobile. And the mobile became the new desktop. And that device is really issuing in a new era of opportunity for all of these franchises and, of course, great companies like Under Armour. Because at the end of the day, the millennial is on that device. Have you ever gone to a game and seen a kid in that game not spend as much time on the device as they do staring at the field? I haven't. So there's really something going on here with mobile. Now, there's data. You've got to have the data in the hands of the user. And they want instant on. So HANA became attractive in terms of our strategy and what I've learned because it gets them the information really fast. They can extract that information from any source they want. And it starts to make predictions. I bet Kobe has a different foul shooting percentage with two minutes to go in game seven of the playoffs that he might in a regular season game when he doesn't focus as much. And those are the kind of questions these fans are asking that device about their favorite player when the game's on the line. And that's what enriches the fan experience to such a level. And I have to tell you, when I was out at the 49ers stadium with Jed, and I went to his organization, he allowed me into his office where they're going through draft picks and thinking about talent, I was blown away by the professionalism, the attention to detail, the finite areas where they focus and really think about the team and the fan and how they're going to win and be a perennial winner. It's just amazing. So I think it's this rich combination of having the right technology, the right leadership, and the passion to want to win. And that's what these guys have. That's why I think you see in the best panel we've ever had at SAFAR. All right, we're going to go up front for the next question. I'm Jackson. I'm from IT World Canada. Quick question about who you're hiring. This is for the customers of SAF. Are you bringing in a data scientist to help you understand all of this data that is being processed by your new products? Who are the people that are going to help you interpret what the software is telling you? Hi, I'll start. The answer is yes. Increasingly, we're hiring young, really smart analytics people who understand data, understand how to mine data, and understand how to use the tools that we're getting from companies like SAP. But I should also add, and maybe this is part of the response to the last question, too, that Kevin addressed it this morning. It's about partnerships. It's about a partnership with a company like SAP. I mean, at the end of the day, we still are, maybe I'll call ourselves the data company or media company, but I also recognize we're a sports league. And that we need great partners like SAP to move into the next generation, to the next generation of fans. And even in the hour between the panel this morning and the panel now, just the conversations that I was having with Bill and his team, Kevin and Jed, I was already taking notes on things to bring back to our office in New York on new innovations that we need to focus on. And it just reminds me about what it means to enter into these partnerships and also the peer relationships we gain from being at conferences like SAP are. That's beautiful. Finally, add on that, too. I think you've got to be careful, one thing that I've found, and whether it's trying to become going from a very masculine men's brand into adding and making women's an important part of what you do, whether it's trying to become a footwear company, whether it's trying to go international. These things can't live as a department with one person. They need to be of your company and of your culture. And whether it was being a footwear company, I remember in 2006, walking around and pulling up rug mats around where it said, Under Armour Performance Apparel. And it's saying, man, you're insulting everybody in our footwear department when we have that. Footwear needs to be everywhere. Global needs to be everywhere. Technology needs to be everywhere. SAP sits on the screen on every desktop within our company. It's not a group, it's not an apartment, it's anything. It needs to be of us. And so I think that's one thing of truly embracing that culture, embracing what data, what, again, the things like HANA can do for us as a company. It'll start, and you're going to have, again, you'll have people at the tip of the spear that are leading for the business. But it's important that over time that continues to trickle down to everywhere throughout the organization. I'm going to take this opportunity to remind people who are watching this slide that you can send questions to press at sap.com. You can also send it to us by Twitter at the sapphirenow hashtag. But I want to follow up with a question about culture that was submitted. And I'll focus with Jed and Adam about when you say you're a technology company, I think you touched around this. But what about the blood and guts of the sports? And what kind of cultural change does your organization undergo when you adopt technology increasingly, when a lot of this stuff is gut and passion? And do you see attention? No, I don't see attention at all. As I said earlier, I think the technology helps sort of unleash the passion. It's through the technology that you get to understand more deeply what's really happening in the sport. Things, patterns, as Bill would say, that you don't necessarily detect just by watching a game. And I think the notion that while you're watching a game on television or you're there in person, and as Bill said, Kobe's on the foul line. The way to be able to instantaneously access a sense of how is that player doing in that situation? Think of it from a coaching standpoint. Increasingly, the coaches are using that data too. It's not all about the hot hand or about intuition. It's about let's go to the real data. How does that player perform in the fourth quarter with two minutes left? And even probably more importantly in a sport like basketball, how does that player perform with these other four players around him and these other five players against him? Beautiful. And I think that's the key. We talk about technology. And the 49ers are not a technology company. But we want to be an innovation company. And so often people want to combine technology and innovation and say they're the same thing. They're not. They're very different. So I don't want to have my team worried about building out everything on the back end. I want to worry about what do we do well and how do we partner with people that can help us do what we do well even better. So if you're going to have a coach that wants to know what are the right calls to make in the second half? What are the right calls to make during two minutes? What am I thinking about when another team is on the field and how are we trying to combat that? That is going to help you. It's not always going to give you the right answer, but it's going to at least make it easier for you to get to the right answer. And that's what we're trying to do. We're trying to make sure we get to the right answer. And for our coaches and our general managers and our players, if you can give them something that can help them win and help them be more successful, they don't care what it is. They're just looking forward to an advantage. Each lucky wristband. We're going to go for the next question right up here. Good morning. This is Brian Enix with AT&T. I look at you guys and I think of, I just get excited because I think you guys are somewhat of a dream team here. You're on a pivotal edge of sports entertainment. Adam, you were talking about enabling all these statistics and the dark data and all that. And I look at Kevin and I think, OK, you've got all this biometric data. Why are we not right there at the digital edge of real time biometric data? For all sports, all athletes on the field, you can actually just pull it up and say, hey, look, this guy is about to tire out. Or he's really peeking. Here he goes. You get punched by a boxer and you can see the amount of impact that it had on his body. This real time biometric data, I think we could almost revolutionize sports entertainment by enabling it and watching these athletes and seeing how they're tiring. And you can be a coach and you can say, all right, look, this guy is starting to tire out. I've got to pull him. That type of real time biometric data in sports entertainment could revolutionize how, talk about the 18 to 35 age. I tell you it's like a video game at that point. They're like, wow, this guy is really starting to tire out and you talk about betting. You could say, all right, I can see this guy, the horse is starting to, you know, you can even enable it. Can I have any kind of a thing that you could read biometrics on? Almost at a pivotal point. No, to your point, think about it. I mentioned before there's the data on what that player has done historically. But just imagine that same player is now on the foul line. There's five seconds left in the game. He's got two shots. They're down by one. And you know what his blood pressure is doing. You know where his pulse is going. I agree with you. That's the future. So we began that more than two years ago in 2011, January or February 2011 at the NFL Scouting Combine when Cam Newton, Julio Jones, we had several of our athletes were coming through the combine. And they were for the first time wearing Armor 39, which was reading out for them real time biometric data, heart rate, breathing rate, accelerometry, horse power, G-forces, all these things. You're measuring and saying, you look at what a Cam Newton's horse power was, or Julio Jones going 9.2 Gs in the first 10 yards of his 40 yard dash. And you're measuring that and saying, OK, against the best athletes in the draft, if we're going to spend first, second, or number three, or number four, five pick on one of these athletes, how does that measure to somebody else? The vision that we have, I mean, it all comes back to its measurement. But if we have problems and you're seeing it play out, particularly in the sport of football right now, around concussion issues. And so whenever we have issues, the first thing we want to do is we want to measure it. And in measuring it, it gives us the ability to find out what's the issue. And then we start saying, what can we do once we measure? Where do we go from there? So we're in the process of measuring these issues. To be clear, at Under Armor, one of the things that we want to do with Armor 39 is the vision we have is a coach someday. It's not the subjective opinion of a trainer or coach who's walking around a field and saying, well, what's the problem out of the field? But somebody's actually got a handheld or some kind of PD-8 device that's saying, number 38, number 64, and number 91, you guys slow it down. Or the trainer says, hey, coach, the team's really redlining right now. Let's push them back a little bit or maybe get time to get them some water. I mean, that's the future where every athlete in the future, and I'll hold back on saying when that is, we'll have some type of biometric measurement device in their apparel, in their clothing, in their body that is telling them how the athlete's actually performing. And you look at that from a team standpoint, not only does that make the game safer for your players, it makes it easier for your coaches and trainers to know what to do and how to do it. But it also provides a better game for the fans, because you're not having somebody out there. Nobody wants to see a star player get hurt. And if you know that a guy's more likely to get hurt at this point in a game or at this point in his body, then you can take them out. And so you're going to have a better game overall, and you're going to have a healthier, safer game, and that's what we want to accomplish. And the one thing that I think will be at the essence of all of this is speed. Because that feedback loop has to be instantaneous, and that's where HANA plays such an amazing role, because it's 100 to thousands times faster than any other technology in the world. So anybody with a handheld device, including all of you, will not wait. So it's instant on, it's instant feedback, it's instant action on all these decisions. And I think on the field or with the athlete, this is going to be a key success factor for all of us. Excellent. We're going to go over here, and then we're going to go over to Doug for the next question, Mona. Hi there. John, I'll be from Bluefin. Question to you, Bill. One of the things that I heard, and I think is the most powerful thing, is SAP is a Diane the Woolley RP company, technology company, turning into what I term as a human company, a people company. And your customers, and what we're hearing, is they're people companies, media companies, brand companies, trying to become data companies, as well as remaining brand companies. How do you manage that enormous difficulty of changing the culture within the company and helping cut your customers with their cultural journey, as well? That's a great question. So what we did three and a half years ago, we looked ourself in the mirror, and we were very determined to not celebrate the things we liked. We knew we had the ERP market sewn up, and we were the market leader. But we wanted to go where the world was going with the company and where the customers needed to go. And that led us on this mobile path for the secure application mobile platform, market leading. It led us on the big, fast, super fast data and HANA. And it obviously took us on the cloud. But it also led us into a different journey becoming a B2B2C company and co-innovating with brilliant CEO executives like the ones I'm next to here that had visions of their own. So we became much more humble and much more empathetic for what companies were trying to do on the front lines. And we took the technology and the co-innovation concept and started to build out new business models. Case in point today, this is the sports, media, and vertical business. We added the 25th industry that SAP is in. The other piece that I think is quite fascinating is whatever we have, they can have. Like there's no secrets. We're on the same team. If I can do something for these guys and they could do something for me, they'll do it and I'll do it. And I think this idea of true friendship, true innovation partners is what's fundamentally changed. We are really on the outskirts of having something really big here because if we can become a consumer brand and drive that demand-driven supply chain where it's sense and respond, it's instantaneous, it's on the mobile, you leverage in the cloud for the line of business or even running entire companies on the suite on HANA in a private cloud environment, I mean this is game over. We got a real chance here and that's what I see coming together in front of you today. Excellent, thank you. Go to the back. Hi, Juan Carlos Bernate from Columbia. I have a question. How can you monetize these kind of solutions because this is a one that is orientated to the fund sympathy and that he likes your team. How can you explain the financial guy that you're going to invest a lot of money but you aren't gonna receive a revenue in a short period? Well luckily I don't have to explain anything to the financial guy. But I think the most important thing for us, if we're building a billion dollar stadium, and we're on the hook for hundreds of millions of dollars of debt, I wanna make sure that people are coming to our arena, to coming to our sporting event and in order to do that, you need to make the in-game experience compelling. It's not about just building a nice luxury suite and building a nice club seat, you have to make sure that the fan experience is something that the fans actually want and something that can change and adapt which is why you're looking at a software driven solution as opposed to hardware driven solution. So when you're looking at not putting a ton of money back into hardware in your building, we could build a $60 million scoreboard, have it be the biggest, most expensive scoreboard in all of sports. It's gonna be obsolete in several years where our fans, especially in Northern California where smartphone penetration is probably the highest in the world, our fans are spending on average about $1,000 every 18 months on their own hardware technology, whether that's a tablet, whether that's a smartphone. So our fans are spending that $60 million that we would spend for the best scoreboard in the world. They're spending that every 18 months on their own hardware. So that's something that's gonna continue to allow us to leverage our building and make sure that we get fans to come into the stadium and when you're talking about data, you're talking about, well, I don't really wanna go get a soda right now or a hot dog because it's in the third quarter. How do you make in-seat delivery possible? How do you make sure that there's a ticketless stadium, a cashless stadium? You make it easier for fans to purchase. I think you're gonna see a lot of revenue generation just because the hassle to actually buy is taken away. You wanna make it easier for fans to literally leave their house, get to the game, find parking, find their seat, upgrade their seat, connect to the game, connect to fans inside and out of the game and then actually leave and get home. If you can make that an easier, better experience, then your revenues are gonna follow suit. And I'll just add to that. I mean, take the product I've been talking about earlier, the NBA.com statistical area. Since we added the HANA technology to our stats database, we've doubled the amount of time that consumers spend on that section of NBA.com. So that's sort of a very narrow example, but as I said earlier, more broadly, it's all about increasing engagement. If through this technology, we can increase the amount of time, for example, people watch our games. Obviously, take television ratings. Television ratings are a function of the number of people that watch times how long they watch. And one of the increasing issues for all of us is that as people have so many other entertainment options, more unique people to use an internet term are watching the NBA on television than ever before. But a lot of people are watching for shorter amounts of time because they have a thousand channels and unlimited number of options on the internet or through whatever technologies. But if you can find additional engagement and get them to focus on some of the things we were talking about before, the player's pulse when he's on the line at the end of the game or statistics on the likelihood that he's gonna make that basket, that's gonna increase their engagement, to increase the amount that they view the game and ultimately increase right to Kevin's business, the amount of products they consume that are associated with our game. Exactly. Okay, next question will go to the back again. Hi guys, great panel. This is Ron Hanscom from Gartner. We've talked a lot about teams and sports are always the greatest example of how high performance teams come together. Tell us a little bit about how SAP's helping your own internal teams, your employees, your contingent workers, all those folks that are helping you drive your business. How are these solutions helping you build that high-performing team in your own organizations? I'll jump on that one first, is implementing things like success factors to us has been a huge addition. Again, there were two strategies. When we got involved with SAP, so now seven coming up on eight years together since we started the implementation process and knowing one another. And it was an interesting philosophy because as you begin with a company, you look at SAP and they're top three in any category. And you look in a business, particularly, you know, Unrummer's been around now, we're heading in our 18th year in business and you can take different philosophies as how are you gonna grow your business. Continuity consistency is an extremely valuable asset to any company in any business. And you know, as I've seen, as we've evaluated different processes, different pieces of the puzzle, it's say you know what, we think today there may be a better solution, there may be a better partner in the market where SAP's probably, they're number one, maybe they're number two in a particular segment and whether it's for us, particularly HR. And getting into one consistent system with one consistent backbone, I'll use that word again, that has SAP there. And when we brought on for instance, success factors, it wasn't saying who else can we find in the market that maybe the HR director that we had at the time maybe was familiar with or liked. We've declared that we're an SAP company and that's made things a lot easier for us as we're looking to hire and build off of that infrastructure. Now within that, things like success factors, I gotta tell you, the evaluation process for people is, you know, we've got an average workforce of 31 at headquarters, we've got about, coming up on 1,400 people at headquarters today, we're adding about 300, 325 new heads a year. And you've got, you know, you're bringing in these young people that are saying, what are you gonna do for me now? I mean, these millennials are not easy to manage. They're wondering and saying, I want it now, right? I expect to be a vice president today. I want the money. I expect cafeterias and gyms and flexible hours and all these things. I mean, there's a lot from the other side, so part of it's an education. But we need to listen as well because it's not about us dictating to our people, but it's about our people managing the company. You know, that's where things like, you know, I'd say that the human resource aspect that was something of, again, another plug-in from the SAP mainframe that comes into Under Armour that makes it that much more consistent for us. And we took a process that was literally, it was hours on end to do the evaluation process that today is about, it's twice a year, it's about a one-hour process, and it's a conversation that's explaining to somebody, here's where you are in life, and more importantly, here's where you're going. What we care about from a human resource standpoint, for instance, as much as we're growing, recruiting, onboarding, and development is our people, it's our job to tell them where they're going and again, having the right pieces that will do that, you know, have been a huge help to us. In the essence of time, I don't want to build too much on it, but that's, my organization is much smaller. Outside of football, we have about 125 employees, but the more that we can bring folks in and train them the 49er way, whether it's on the field or off the field, and you can show people your quantitative analysis, not just your qualitative analysis, and you can get them better and show this is why you're not being promoted or this is why we want you here for the long term, it makes it so much easier to have those conversations and make sure everything is streamlined. And I'll just add, I'm learning a lot just by being on this panel and as Jed said earlier, describing his company as an innovation company as opposed to a technology or media company, I think innovation is what attracts so many of our employees to the NBA or to the NFL for that matter, and the kind of people who work at sports leagues, I find are people who often are very competitive themselves, and while they may not be able to compete on the field or on the court, they want to compete in business and they recognize that by having access to a company like SAP and to a HANA solution, that's gonna enable them to do their jobs and better and to compete against all the other entertainment options in the marketplace. You know, Adam, like you, I'm learning too on this panel, and when I think about Jed taking a position that my customer is investing in hardware, why do I wanna go there? I wanna go in software, the innovation layer and improve the whole fan experience, that's where I can add the value. I think about basketball, five persons on the court against five, and the sophistication and complication associated with getting five people to do exactly what they're supposed to do in a fast break or a zone trap defense, or I think about putting 11 football players on one side of the football on any given Sunday and having them do what they're supposed to do to win the game, and then I underscore Kevin Plank with thousands of people on the scalable, fast-growing global business, and I'm like, listen, consistency, my way, scale, innovation on top, no nonsense leaders. This is why their organization's a world class, and there's a lot of them out there where everybody does what they want, and it's a free-for-all, and you just don't get as good of an outcome. This is that simple. Excellent, next question, we'll go up front. Yeah, Kevin, today you mentioned a new partnership with IBM that you had a problem with the slow-running report. Can you go a little bit deeper on what the problem was, and are you moving to Hanna and how is IBM involved in that? Right. I'm gonna be careful about going above my pay grade with my definition here is where we go, but I'll tell you the issue that we had. So as our systems continue to grow, we were having process with the sales allocation process, and so every night we're implementing orders all day, and then all of a sudden those orders need to get downloaded, sent over, and get ready to shift out around the world, and what would happen is that process, as the data became more and more cumbersome, the process took longer and longer. So based on the servers that we are using, the system, the horsepower that we had beneath of it, it was literally, it was a process, as I mentioned, it began at midnight, and then midnight turned to 11 p.m., 10 p.m., and then we were backing up to the day where we just couldn't get through a full day of orders, and so we weren't getting the full allocation, so we were shipping things 60, 70% full. Today we are 91% faster in a process and we called this problem out and we went to SAP and saying, this is very specific to us, how can you help us with it? So they said, we need a bigger engine, which is where IBM came in, and then we need a bigger platform for what SAP provided us, and with that now we're implementing speed on the HANA platform that's allowing us to run, as I mentioned, 91% faster than we were before. So getting goods to the consumer again, the most expensive thing for us is an empty fixture, and we've dealt with that. Our product is selling right now, and there's nothing more frustrating than we're going through that entire expense of convincing and compelling a consumer to want our product, to go to a store, to go look for it, and they don't have it, and so in that case they're typically buying either one of our competitors or it's a no-buy decision or it's a disappointment in the brand. Thank you, do we have, we have one more question up front? Yeah, I did for Bill, this is an error-clone quiz for me. As you get to sort of millenniums and mobile and consumer, the user interface becomes more and more important, but traditionally not one of the strong points for SAP. So I was wondering if you could talk a little bit about the resources you're putting behind that issue and how you're going to resolve it. Sure, it's a very fair point, and as I said in my keynote today, it is the number one top priority in the company. One of the things we learned a long time ago is when you want to get something done, put a leader in charge that knows what to do. So if you think about Vishal Sika, who's the CTO and executive board member of all of SAP, he's got a gentleman by the name of Sam Yen that has the whole user experience mandate for the company. Everything is about the user experience. One of the things that really helped out is once you became the mobile security and application market leader, everything looks a lot more beautiful on the mobile. So now we've also taken a lot of the applications that were SAP desktop type applications and put personas around them, where the user can actually customize it to her or his pleasure and make it much more beautiful to use. So everything new that's coming out is gorgeous and obviously device ready, and the things that were legacy or older in nature now have personas around them where they too can actually be beautiful and much more pleasant for the user. But this is right. You're absolutely right. It's just like the fan experience. Anyone using this software, they have to love it. They have to have a great experience with it. They have to say, this is making my life better, my job better. And that's the kind of SAP we are today. We'll take one more question. Team owners need to make sure that the executives don't muck up the user interface. Take the next question up front. Yeah, I'm Stuart Kennedy from The Australian Newspaper. Just one realized discussion about biometrics and analytics applied to support. Is there a point where it gets too good? We know which horse is going to win the race before it starts, and which team is going to win? When which player is going to make a shot, it just gets too good. Maybe with a horse. I don't know enough about horses. But I mean, when you're talking about 11 athletes and going head to head and somebody making a play, somebody making a catch, Kobe, for the most part, he's really good in the last two minutes of the game, but we've seen a mis-free-throws at the end of the game. So I think that's where it gets really exciting because as a coach, as a general manager, you try to put the people in position to be as successful as you possibly can. And from a fan standpoint, you look at a guy, and I'll never forget Mark Lemke, who was never much more than a 200-hitter throughout the entire season in the MLB when he got into the playoffs, Mark Lemke was a superstar. So you're going to always have an anomaly, and I think that's going to create even bigger, better stories. And now you're going to be able to know how to benchmark that story versus somebody else stepping up. And there's always going to be user error and user sort of overcoming whatever data is in front of them and whatever statistics are in their way. And that's what makes, to me, the game more compelling. And I'll just add again, the league perspective versus the team perspective is that when you're in the league office and you see teams doing what Jed's suggesting and making these enormous investments in getting that incremental win, you realize from the league office standpoint, in the aggregate, they can't create a single additional win per year. There's going to be the exact same number of wins and losses on a league basis every year. So it's a fascinating exercise that we watch from the league standpoint as all of these teams compete for the edge, compete for the edge, and then they all try to catch up with each other, knowing again that it's a zero-sum game in terms of wins and losses. So something increasingly that I'm spending my time on is as opposed to what Jed is doing at a team level, looking at the aggregate data from a league-wide basis, thinking about how can we grow interest generally? How can we make a more exciting product for the fans, not just how can we create an additional win for an individual team? I appreciate the references. I'm actually in the horse business. I own a farm called Sagamore Farm. As we sit here in the evening, the Freakness in Baltimore, Maryland, we've got a big race this weekend. We'll have some horses down in the Melbourne Cup someday soon as well. But I mean, as a guy in the horse business, I'm not worried about having too many answers in horse racing these days. You can make me a little bit smarter. I'd take anything we could get. Any tips you want to give your friends today? Oh, I mean, I'll give a shout out to the Australian press about Rebels Sport, who's our new key partner in the country, but no, I don't have, I think, or if I like or if a lot though, I think we've made this prediction, we've made a few predictions, but we call them in the derby, and he's the Maryland homebred, so we're definitely gonna go with the Maryland horse. We're going to wrap it up here. I want to thank you gentlemen for many of us coming in today. Innovation for the fan experience was when Lazy Boyd put the cup holder in the recliner, so our eyes are open and we're illuminated today. So thank you, everyone. Thank you all for joining. Thank you. Have a wonderful sapphire. Thanks, everybody. People love you. He's a wonder. Thank you, Jim. Pleasure to meet you, man.