SAP Industry Strategy Update

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SAP Industry Strategy Update

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1. SAP Industry Strategy Update Jim Hagemann Snabe SVP IBS Services Nils Herzberg SVP IBS Manufacturing & Distribution

3. SAP´s Industry Strategy Capitalize on SAP´s industry expertise to fuel future growth and sustain competitive advantage Deliver end-to-end industry solutions build from solution portfolios for 23 industries Adapt and position all relevant solutions such as CRM, SCM, ERP,.. and industry-specific applications “Aggressively” continue to move into the service industries to capture existing and create new markets by capitalizing on the need for standard software

5. Leveraging The Strengths of Solutions in 23 Industries Examples mySAP CRM for High Tech (Opportunity Management) mySAP CRM for Consumer Products (Trade Promotion Management) mySAP PLM for Automotive and E&C (Product and Process Engineering) mySAP CRM for Insurance (Claims Management) mySAP CRM Banking (Front and Back-office CRM) mySAP CRM for Public Sector (E-Government) mySAP CRM for Service Providers (Enterprise Service Automation) mySAP SCM for Retail (Forecast and Replenishment) …Examples mySAP CRM for High Tech (Opportunity Management) mySAP CRM for Consumer Products (Trade Promotion Management) mySAP PLM for Automotive and E&C (Product and Process Engineering) mySAP CRM for Insurance (Claims Management) mySAP CRM Banking (Front and Back-office CRM) mySAP CRM for Public Sector (E-Government) mySAP CRM for Service Providers (Enterprise Service Automation) mySAP SCM for Retail (Forecast and Replenishment) …

6. Example of How an Industry Portfolio is Assembled

7. SAP NetWeaver and SAP for Healthcare

8. Packaged Solution: Project Management & Project Resource Planning

9. Utilities - A Long-Term Industry Strategy That Pays Off ueberarbeitenueberarbeiten

10. Selling Into Existing Clients Case Study: International Industrial Group

11. Insurance International SAP Insurance Infodays in April with over 600 delegates Development start of SAP Policy Administration - the cornerstone of the insurance offering Banking Coordinated ad campaign 10 countries Go-live of UBS & Postbank core account systems Launch of Basel II and IAS. Contract wins prove SAP concept Public Sector Headquartered public sector development hub in Washington D.C., E-Government and Homeland Security program Healthcare First shipments and „going-live“ of Mobile Healthcare New version of SAP Patient Management Utilities EON decided for mySAP Business Suite for about 55,000 users. EnBW: Successful going live of largest mySAP CRM implementation worldwide integrated with SAP IS-U/CCS Telecom Large Customer Financials Management contract with MCI Global Strategic Alliance and Software Development Agreement with Portal Software Inc. Media Intellectual Property Management Rollout with CRM 4.0 Ramp-up Candidates for Intellectual Property Management Service Providers Launch of mySAP Professional Services (March/03) Launch of four segments (Railways, Logistics Service Providers, Technical Service Providers, Postal Services) within 2003 Service Industries Sector – Selected Highlights 2002/03

12. SAP Industry Strategy Update Jim Hagemann Snabe SVP IBS Services Nils Herzberg SVP IBS Manufacturing & Distribution

13. M&D Industries Sector – Selected Highlights 2002/03 Chemicals Growing momentum for CRM in chemical industry, including The BOC Group, Dunn-Edwards Corp, Marsulex Inc, Millennium Chemicals, and Rohm and Haas Company Many successful go-lives, such as BASF, Exxon Mobil Chemical IndustrySpeak – pre-packaged business content in SAP Netweaver supports Chem eStandards (CIDX) Oil & Gas Marathon Oil Company go-live on production and revenue accounting capability of mySAP O&G Large go-lives through-out the world solidifying SAP’s position as the de-facto standard Mining Global SCM implementation at BHP Billiton Consumer Products Growing traction in CRM, successes such as adidas, or Becks Major contracts signed with Conagra, The Benetton Group, etc North American Apparel & Shoe situation stabilized – “Nike runs SAP” Significant SCM activity expected due to Walmart’s RFID announcements Retail RFID support in METRO Future Store Stabilization of the North American situation Karstadt Quelle - Entry into fashion retailing Aerospace & Defense Successful implementations at Air France, BA, Lufthansa Cityline – the de facto standard for the industry Collaboration between government contractors and the national defense organizations as next growth area Automotive Launch of global service parts logistics initiative with Ford and Caterpillar Success at major OEMs (e.g. BMW & DCX) Go-lives with Vehicle Management Solution and Warranty Claims Processing High Tech Major CRM successes, including Siemens mobile, Samsung Electronics, Intermec, Adobe IndustrySpeak – pre-packaged business content in SAP Netweaver supports Rosettanet standards Growth in CRM and SCM through packaged solutions Machinery, Equipment and Construction Launch of strategic solution mySAP Industrial Machinery and Components (IM&C) IM&C launch in SMB market in North America Major contracts signed with Lurgi, Daewoo Marine Shipbuilding or Cooper Industries Mill Products Significant inroads in SCM, such as International Paper, Finnforest Corporation Pharmaceuticals Major contracts signed with Aventis, Sankyo of Japan, or Novartis Additional focus on R&D processes in Pharma & Life Sciences

14. SAP Customers Within Fortune 500

15. 2001/02 Growth of Customer Base by Region and Sector

16. Customers in 2002

17. Creating sustainable value for our customers

18. SAP creates value! At Anzes (Air New Zealand Engineering Services) a competitive advantage has been built around the company's people and IT system SAP. Isn't it dull? Not when it allows 20% growth… Craig Sinclair – SVP of Operations & Technical Air New Zealand Sunday Star Times, June 1st 2003

19. SAP´s Industry Strategy – Program Strengths Powerful Organization in place Dedicated field organization Dedicated development and go-to-market organization (IBUs) Dedicated marketing organization Deep Industry Expertise and best practices Provision of first industry solutions already in early 90ties (Oil & Gas, Utilities) Broad industry approach since introduction of IBUs in ´97 Broad range of industry content and sales tools available (>30 Solution Maps, industry pre-configured systems, demos, ...) Strong Customer and Partner Assets Large and loyal customer base Large partner eco-system Joint development projects with leading edge organizations

20. The right solutions for all industries

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