Transcript Hosted by SAP 2003: Your Technology and Business Roadmap Jim Shepherd Senior Vice President AMR Research.

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SAP 2003: Your Technology
and Business Roadmap
Jim Shepherd
Senior Vice President
AMR Research
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Agenda
 SAP’s Business Strategy
 SAP’s Product Strategy
 SAP’s Technology Direction
 What Should You Worry About ?
 Maximizing The Value of Your SAP
Investment
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SAP Snapshot
 7.4B € in FY02 Revenues
•
56% from Maintenance and Services
 FY03 Expectation: Flat Revenue, Improved
Profits
 19,300 Customers
 50,000+ Installations – 120+ Countries
 23 Industry Solutions
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SAP’s Business Strategy
 Account Control- “The Reliable Business Partner”
 Growth – “Influence Greater Share of IT Spending”
 Customer Lifecycle Management “ROI -SAP Delivers Value
 Services, Maintenance, & Add-ons
 New Markets and Channels
“We don’t want to be just the safe haven– Consider us
your trusted innovator”
Henning Kagermann – Sapphire 2003
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CIO Issue
Today
3 years from now
10%
30%
40%
INNOVATION
20-25%
CONSOLIDATION
35-40%
OPERATION
60%
Source: SAP AG
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SAP Business Strategy:
Become Your “Trusted Partner”
Strategic
Consulting
Discover & Evaluate -> Implement ->
Operate
Business
Consulting
Business
Software
System
Integration
System
Support
Infrastructure
Consulting
Infrastr.
Software
System
Integration
Infrastructure
Support
Hardware
OS, DB, ...
System
Integration*
Technical
Support
Outsourcing
Application Layer
Middleware Layer
IT Layer
Source: SAP AG
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SAP Business Strategy:
“Extended Range of Services”
 New Maintenance Offerings
 Architecture Planning
 Custom Development
 Consulting
 System Integration
 Operations Planning & Optimization
 Hosting / Outsourcing
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SAP Business Strategy:
New Markets and Channels
SAP Direct Sales
Vertical Resellers
Business One Centers
Sales/Service Partners
Source: SAP AG
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SAP Product Strategy:
All Things For All Buyers
SAP for <Industry>
 SAP for Aerospace & Defense
 ...
 SAP for Oil & Gas
SAP Packaged
Solutions
 Service Management for <Industry>
SAP xApps
mySAP Business Suite
 SAP xApp Resource &
Program Management
 mySAP ERP
 SAP xApp Mergers &
Acquisitions
 mySAP SCM
 ...
 ...
 Financial Insights for <Industry>
 mySAP CRM
SAP Smart Business
Solutions
 mySAP
All-in-One
 ...
 SAP
Business
One
SAP NetWeaver
 SAP Enterprise Portal
 SAP Business Intelligence
 SAP Mobile Business
 SAP Master Data Mgmt.
 SAP Exchange Infrastructure
 SAP Web AS
Source: SAP AG
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companies
SAP Vertical Market Penetration:
SAP Customers Within Fortune
500
70
60
50
40
30
Discrete
SAP customer
source: Fortune 500 2002; SAP Analysis
Process
Financial
Services
81%
78%
Util
Serv.P
63%
Media
Mill
Chem
HT
E&C
Auto
A&D
Retail
CP
CP/Retail
Ins
100%
0
48% 37%
100%
FSP
100%
Bank
69%
Pharma
87%
76%
86%
O&G
87%
86%
54%
97%
Mining
10
90%
Telco
57%
20
Services
Fortune 500 comp
Source: SAP AG
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Current Application Strategy
 The Ever Expanding mySAP Business Suite
 R/3 Enterprise or MySAP ERP ?
 Scalability : All-in-One and Business One
 The xApps (Cross-Applications) Framework
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The Ever Expanding mySap Business Suite
Extranet
Internet
COLLABORATION
Comprehensive e-Business Solutions
Portals
Advanced Supply Chain Planning
Customer Relationship Mgmt
Intranet
Supply Chain Hubs
Business Warehousing
R/3 Accounting
R/3 Logistics
R/3 Fulfillment
R/3 HR
...
ENTERPRISE
Marketplaces
Enterprise Group
B2B Procurement
Strategic
Enterprise
Management
Strategic
Enterprise
Management
Knowledge
Warehouse
Industry-Add-ons
Collaborative Engineering
E-Recruiting
Electronic Bill
Presentment &
Payment
Collaborative
Forecasting
Business Partners
World
Source: SAP AG
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SAP Product Strategy:
Scalability
Headquarters
Distributor
SAP All-in-One
mySAP.com
Exchange
Infrastructure
Sales Subsidiary
Factory
SAP R/3 Enterprise
SAP Business One
Source: SAP AG
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SAP Product Strategy:
xApps are
Packaged Composite
Applications.
They deliver new
end-to-end
business processes,
that snap-on to an
existing
IT environment.
Start out as separate
next practices but
migrate to suite-based
best practices
xApps
xApp
New, snap on cross-functional business process
Existing applications
and data sources
Source: SAP AG
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Announced xApps
Business Views,
Events (Context & Insight)
SAP xApp
Resource and Program Mgmt
SAP xApp
Mergers and Acquisitions
SAP xApp
Employee Productivity
SAP xApp
Product Definition
Desktop/
Office
Support
HR
Financials
PLM
SRM
SCM
CRM
Legacy
Functional Transactions (Hindsight)
Source: SAP AG
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R/3 Enterprise
SAP R/3
Enterprise
Extension
For SCM
SAP R/3
Enterprise
Extension
For FIN
SAP R/3
Enterprise
Extension
For HR
SAP R/3
Enterprise
Extension
For Travel
SAP R/3
Enterprise
Extension
For PLM
SAP R/3 Enterprise Core 4.7
All Existing R/3 Functionality
Future Changes limited to:
• Legal Changes
• Defect Fixes
• Performance Enhancements
SAP Web Application Server 6.20
Replaces Basis Server
Provides J2EE and ABAP Support
Common Foundation for all mySAP.com Components
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R/3 Enterprise Rollout
Internal
Customer
Release
Restricted
Shipments
7/02
Unrestricted
Shipments
12/02
 New “Ramp-up” Release Process
 ~200 Customers in Controlled Release Phase
 1000’s of Copies Shipped Since January
 Reports From Customers Are Very Positive
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mySAP Business Suite
mySAP PLM
Purchase Order
Management
mySAP
SRM
mySAP ERP
Financials
Human Resources
Corporate Services
Operations
Sales Order &
Delivery Management
Maintenance & Quality
mySAP
CRM
Inventory & Production
mySAP SCM
SAP NETWEAVER
Source: SAP AG
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mySAP ERP
Analytics
Strategic Enterprise
Management
Financial Analytics
Financials
Financial
Accounting
Human
Resources
Employee Relationship
Management
Operations
Management
Corporate
Services
SAP
NetWeaver
Purchase Order
Management
Management
Accounting
Inventory
Management
Corporate
Real Estate
Management
People Integration
Workforce Analytics
Financial Supply Chain
Management
Employee Lifecycle
Management
Production
Management
Maintenance
& Quality
Travel
Management
Information Integration
Operations Analytics
Process Integration
Employee Transaction
Management
Delivery
Management
Sales Order
Management
Incentive &
Commissions
Management
Application Platform
Source: SAP AG
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SAP Migration Strategy
1 mySAP Business Suite

mySAP
Business Suite
SAP NetWeaver
Customer can buy and deploy
mySAP Business Suite
mySAP
ERP
2 mySAP ERP

Customer can buy and deploy mySAP
ERP
3 Combining mySAP ERP & Solutions

Customer can combine mySAP ERP
with mySAP Solutions
4 Combining R/3E & Parts

Customer can combine existing R/3
Installations with Solutions, SAP
NetWeaver (also parts of it like e.g.
Portal or BI) and with Quickstep
packages
SAP NetWeaver
mySAP
ERP
+
mySAP SCM
+
mySAP CRM
+
+
SAP
+
NetWeaver +
R/3
Enterprise
Quickstep
Packages
+
mySAP SCM
+
mySAP CRM
+
SAP NetWeaver
+
Quickstep
Packages
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SAP NetWeaver
Neutral positioning toward
IBM WebSphere and
Microsoft .NET
Multi-Channel Access
Portal
Collaboration
Information Integration
Business
Intelligence
Knowledge
Management
Master Data Management
Process Integration
Integration
Broker
Business Process
Management
Application Platform
J2EE
WebSphere
Life Cycle Management
Centralized collection of
SAP technologies
• Application Servers
• UI Management
• Integration Framework
• Security
• Business Process Mgmnt
• Data Warehousing
• Portal Framework
• Etc.
People Integration
Composite Application Framework
 New technology
foundation of MySAP
products
SAP NetWeaver™
.NET
…
ABAP
DB
andOS
OS Abstraction
Abstraction
DB
and
Source: SAP AG
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What Should You Be Worrying About ?
 Instance Consolidation
 New mySAP.com Functionality
• PLM, APO, Portals, CRM, etc.
 Release Strategy & Expectations
• R/3 Enterprise, MySAP ERP, MySAP Business Suite ?
 Extended Deployment
• Internally
• Externally
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Maximizing Your SAP Investment
 Competency Center -- Business Process
Improvement Not A Help Desk!
 Continuous Training & Education
 Enterprise Performance Management (EPM)
 Network Theory -- A system becomes more
valuable as it touches more users
 Any ERP System Needs Better Public Relations