Welcome to a New Dimension of Business Solutions an introduction Singgih Wandojo SAP Indonesia

1. Welcome to a New Dimensionof Business Solutionsan introductionSinggih Wandojo SAP Indonesia

2. Information Technology is NOT a Software Purchase But a Business System Purchase

3. Building an Information Technology is NOT JUST to Automate the Business Processes

4. Building an Information Technology is to ENABLE the Business Strategy

5. Information Technology is a BUSINESS DRIVER

6. Shareholders • Active • Real-time information • ... Employee Society • Mobility • Job enrichment • ... • Local competition • “made in” “made by” • ... Enterprise Customer Partner • Less loyal • Price transparency • ... • New competitors • Mergers and acquisitions • ... The New Business Environment …A highly unpredictable place to do business

7. What is SAP? “SAP enables you to positively transform your company so that the maximum potential for your business and your people can be reached. We always strive for excellence to become your long-term partner and to provide the tools you need to improve your company’s value”.

8. Resource Optimization &Customer Orientation Beyond ERP • Customer Insight • Value chain optimizer • Value based management • + Doing e-business • + Web-based collaboration Integration & Automation Enterprise Resource Planning • Cost reduction • Reduce cycle times • Reduce lead times • Transactional processing • Automating Business Process • Traditional technology From Internal Efficiency to Creating Value CreatingValue Internal Efficiency Solution Requirement

9. SAP Extended Integrated Business Solutions 19 • SAP Customer Relationship Management • SAP Supply Chain Management • SAP Business Intelligence • SAP Strategic Enterprise Management • Finance & Accounting • Human Resource Management • Logistics

10. Why SAP? ... Industry focus SAP High Tech & Electronics SAP Engineering & Construction SAP Consumer Products SAP Oil & Gas Business Information Ware- house SAP Transport SAP Utilities SAP Public Sector Sales Force Auto- mation SAP Health Care ... R/3 SAP Telecom SAP Automotive SAPChemicals SAP Media SAP Pharmaceuticals Advanced Planner & Optimizer B2B Procurement SAP Aerospace & Defense SAP Retail SAP Banking SAP Service Providers SAP Mills

11. From Integration to Collaboration Workplaces Marketplaces Portals Employee Self Services e-Commerce Business Intelligence Customer Relationship Management Outsourcing BusinessScenarios Industry Solutions Supply Chain Management PartneringPlatform XML-enabling Business Framework Technology, BAPIs Internet ApplicationComponents Continuous Knowledge Transfer e-Community Collaboration 94 Enterprise ResourcePlanning Inter-Enterprise Cooperation 97 99

12. mySAP.com principles BUSINESS Value Creation Active knowledge  Users form new markets Partnership Open environment Collaboration One-step business Business contextual integration PERSONAL Portals UserEmpowerment User Roles Structured accessfor business Empowering the individual Self service Role-based, Web access     INTERNET Outsourcing  Implementation outsourcing Community  Building relationships Technology Scalable Internet architecture

13. Market- place How do I manage the complexity mySAP.com Workplace R/2 legacy 3rd party non mySAP.com open Internet standards 3.1H INTERNET-BUSINESS FRAMEWORK R/3 4.6 FI Workplace industry-specific role-based personalized drag & relate LO single sign- on SEM HR APO CFM Cock- pits B2B mySAP.com components KM BW CRM Web browser access inside company boundary Partner outside mySAP.com Internet services SAP other Internet services

14. SAP Workplace and Marketplace - Business Portal mySAP.com Overview Company/Organizationboundary mySAP.com Workplace mySAP.com Marketplace Business Scenarios Communities SAP & non-SAPComponents Web Services Information and services withincompany context Information and services outside company context

15. One-Step Business The www.mySAP.com Marketplace Pilot installation of the Marketplace product Commerce Community • Business directory • Business document exchange • Buying and selling • Global catalog • 20 industry-specific and 4 horizontal communities • Chat/forum Content Collaboration • High quality content for business professionals • News, etc. • Distributor reseller mgmt • Collaborative forecasting • RFP/RFQ • Dynamic pricing

16. Needed : A new type of management processes Translate the Strategy Testing Hypotheses, Adapting and Learning Rationalize & Align the Organization Formulate Executive Teams Manage Strategic Themes Executive Comprehensive Communication to Create Awareness STRATEGY Strategic Feedback Encourages Learning Communicate Navigate Leadership Align Goals & Incentives Create Knowledge Networks Execute Align Resources & Initiatives Reengineer Processes Business Execution System Extended Financials Human ResourceManagement CustomerManagement Supply Chain Management Source: The Balanced Scorecard Collaborative, Inc.

17. How will companies do it ? Research Has Identified Four Barriers to Strategic Implementation The Vision Barrier Only 5% of the work force understands the strategy The People Barrier The Management Barrier 9 of 10 companies fail to execute strategy Only 25% of managers have incentives linked to strategy 85% of executive teams spend less than one hour per month discussing strategy The Resource Barrier 60% of organization don’t link budgets to strategy Source: The Balanced Scorecard Collaborative, Inc.

18. Ware- house Ware- house The Enterprise as an Information Model long term short term Capital resources Logistic process Production Procurement Sales Purchase orders Sales orders Processes • materials • services • products • services Vendor Client Raw Material Products Material resources Capacity resources

19. The Total Eco-system Enterprise Partners Collaborative Applications Collaborative Planning & Forecasting Online Service Online Personali- zation Logistics/Production Finance Sales & Marketing Strategic Enterprise Management Order Fulfillment Buying /Procurement Supplier Customer Online Selling/ Catalog Human Resource Knowledge Mgmt./Research Invoicing / Payment Billing /Payment Employee Self Service Employees

20. Information Model For Consumer Industry Strategic Enterprise Management (SEM) Business Information Warehouse (BIW) Customer Relationship Management (CRM) Supply Chain Management (SCM) SAP Consumer Industry Component F I N A N C E Management L O G I S T I C S Management H U M A N R E S O U R C E Management

21. Business Intelligence & Data Warehousing Managerial Accounting FinancialAccounting Strategic EnterpriseManagement Supply Chain Planning Human Resource Management Market Research & Analysis Demand Forecasting Product Management Procurement Treasury Brand Management Procurement Manufacturing Marketing Program Management Fixed Asset Management Advertising & Consumer Promotion Knowledge Management Distribution Sales Force Management Sales Cycle Management Customer Service Key Account Management Trade Promotions Category Management SAP Consumer Products, Edition 2000 Enterprise Management Customer Relationship Management Marketing & Innovation Supply Chain Management Business Support

22. Network Design Demand Planning Supply Network Planning Production Planning/ Detailed Scheduling VMI Global ATP Deployment Manufacturer Distribution Center Retail Outlet Customer Supplier Production Transportation Management Sales Purchasing Warehouse Management Service Management Planning & Execution SAP Advance Planning and Optimization Supply Chain Planning

23. mySAP.com CRM Business Scenarios Internet Sales Internet Customer Self Service Retentionmanage-ment Field Sales TieredServicing Field Service Relationship Intelligence Customerdevelop-ment Common Reporting Tools Service Interaction Center Service center Shared Intelligent Agents Business Partner Collabor- ation Sales Mgmt. & Support Common Data Model Tele Sales Marketing Analysis Tele marketing Product & Brand Mgmt. Internet marketing

24. SAP Business Information Warehouse Decision Support System for Middle Up Manager Business Intelligence and Data Warehousing Powerful Information Analysis - innovative, intuitive user interface - powerful OLAP analysis - for all types of users Rich Business Content (financial, logistic, HR) - predefined meta data - R/3 extractors and interfaces - information models (InfoCubes) and Reports End-to-end Data Warehousing Solution - R/3 and non-R/3 data extraction - fully automated - central control other systems R/3

25. Service level Scheduled delivery date variance Customer analysis key figures Purchasing group analysis Vendor evaluation Credit standing Inventory turnover Range of coverage Inventory key figures Productivity rate Personnel times Absence quota Wage type distribution Fee distribution Average headcount Average age Net entry rate Applications per entry Material consumption key figures Scrap rate Lead time variance capacity load utilization Scrap variance Liquidity key figures Cash management position Economic Profit Balance sheet key figures Legal consolidation key figures Returns quota Order key figures Revenue variance Percentage return on sales ... Return on investment Delivery time Degree of fulfillment Cost variance Input quantity variance Usage variance Price key figures Headcount Revenue per employee Employee turnover Payables / receivables Depreciation Quality key figures SAP Business Information Warehouse Foundation for Benchmarking More than 250 Key Performance Indicators 17,47% 99,73% + 42,7% 1,754% - 29,6%

26. SAP Business Information Warehouse

27. Business Process Management Business Process Management Analyze stakeholder expectations Simulate + decide business strategy Define targets for BU`s / investments Manage performance Communicate results & manage stakeholder relations Strategic Enterprise Management Process Focus: • Develop strategies, which meet stakeholder demands, and manage its execution (translate it into action) • Dedicate resources (capital, employees), so that this process generates returns above cost of capital / above stakeholder expectations • Constantly monitor and manage performance and adapt strategy SAP Strategic Enterprise Management Integrating strategic, financial and operational information Strategic Enterprise Management

28. SAP Management Cockpit Strategic Enterprise Management Performance monitoring, simulation of alternative business scenarios, resource reallocation and new target setting should be possible within one management meeting in the Management Cockpit Room

29. The Benefits for Your Business SAP helps to extend your company’s competitive capabilities • Efficiency • Measure and improve profits throughout your supply chain • Responsiveness • Service customers better • Agility • Act quickly on new marketing opportunities • Reliability • Ensuring maximum availability

30. Business Solutions Benefits Impact of ‘Production Execution Solution’ on Business Cycle … External Side Flexibility of order amendment Increased customer satisfaction Improved CRM Internal Work Cycle Efficient raw material inventory utilization Efficient finished goods management Better Management of Supply Chain Combination/Splitting of orders to suit plant runs Improved Top Line Improved Gross Margins Reduced Cost of Good Sold Better ROI Reduced Plant Maintenance Reduced Capital Expenditure Better Cashflow Reduction in Working Capital ...We can relate ‘Solutions’ to improvement in ROI and/or Cash Flow …and hit the right chord with our customers!

31. Building an IT Infrastructure Management Services Applications ERP,SCM,CRM,SEM,Internet OS/Database/Tool Hardware / Network Infrastructure

32. Country Versions Quality Management Maintenance PDM EIS Reporting Reporting/EIS Workflow Reporting/EIS System Administration Purchasing Sales PPS / PS Finances & Assets Controlling Human Resources QM / PM Workflow Human Resources Product X Purchasing Sales PPS Finances Controlling DevelopmentWorkbench System Administration Cost of Ownership • 1x installation • 1x release upgrade • no interfaces • 1x training • 1x data transfer • 1x rollout • n x installation • n x release upgrade • m x interfaces • n x training • n x data transfer • y rollouts Costs

33. ALL Average TCO as a Proportion of Turnover 4.0% 3.5% 3.0% 2.5% 2.0% Average TCO / corporate turnover (percentage) 1.5% 1.0% 0.5% 0.0% Source: Study by the META Group, 4/99: ‘ERM Solutions and Their Value’

34. Lowest Highest Average 25 22 23 26 25 20 12 6 7 4 12 3 38 44 56 70 48 48 ERP Implementation Times in Months Source: Study by the META Group, 4/99: ‘ERM Solutions and Their Value’

35. Gartner 1998 ERP Magic Quadrant CHALLENGERS LEADERS SAP JDE World Intentia ABILITY TOEXECUTE Oracle Marcam Protean Baan Ross SCT SSA PeopleSoft IFS QAD Oracle Process JDE OneWorld Marcam Prism Cincom JBA Platinum Impresa MRO WDS IBS NICHE PLAYERS VISIONARIES COMPLETENESS OF VISION Source: Gartner Group, Dec. ‘98

36. 42.9% 45% 40% 35% 30% 25% 20% 15% 6.9% 6.4% 5.5% 5.4% 4.9% 10% 5% 0% SAP BAAN PeopleSoft SSA JD Oracle Edwards Source : IDC ASEAN ERP Software Market 1998 ASEAN ERP Vendor Market Share * The revenue is based on software licence and maintenance * ERP is defined as providing solution for at least 3 of the components, Finance, Sales & Distribution, Production Planning, Human Resource, Sales Force Automation in this survey.

37. Partial List of SAP Customer in Indonesia • Status • Amoco Mitsui Indonesia Petrochemical live (5 months) • Astra International Automotive-(holding) live • Astra Daihatsu Motor Automotive live • Auto Serasi Raya Rental Car live (9 months) • Bank Bali Banking live (7 months) • BHP Steel Steel-Sheet live (5 months) • Delta DJakarta Beverage live (8 months) • Excelcomindo GSM-Service live (6 months) • Henkel Indonesia Chemical live • Indah Kiat Pulp & Paper Pulp and paper live • Krakatau Steel Steel Foundry, rod, bar live • Garuda Indonesia Airline live • Trypolita Chemical live • Siemens Indonesia Telecom live • United Tractor Heavy Equipment live

38. Partial List of SAP Customer in Indonesia • Star Motors Automotive live (5 months) • Van Melle Consumer live (6 months) • Telekomindo Telecom services live • Asia Pulp and Paper Pulp and paper live (4 months) • Aneka Gas Utility live • PIK Hospital Hospital live • PT Smart Corporation Agribusiness live • BSI, MGTI, Pramindo Telecom live • Conoco, Maxus,Arun Oil & Gas live • PERTAMINA Oil & Gas Implementing • Mayora Consumer live • Metrodata Electronics Implementing • Japfa Comfeed Poultry Implementing • Pelita Air Airline Implementing • Trakindo Heavy Equipment Implementing • Inti Keramika Building Material Implementing

39. SAP Consumer Product Customer 630 installations 150 installations 130 installations Apparel/Textile Personal Care Food & Beverages Adidas Reebok Beiersdorf Cheseborough-Ponds Colgate-Palmolive Helene Curtis Henkel Johnson & Johnson Lever Procter & Gamble British American Tobacco Philip Morris H.J. Heinz Coy of Canada Cadbury Carlsberg Danone Guinness Heineken Mars Van Houten Nestlé 110 installations Consumer Electronics Black & Decker Bose Braun JBL Professional Osram Pioneer Electronic Rolex Samsung Sony Total installations: About 1300 Americas 20%Asia/Pacific 11%Europe 69% 280 other installations

40. Selected Customers on Food Industry Dr Oetker, s.r.o. (SK)Earthgrains CompanyFlorida Crystals (USA)Guinness (UK)Hardenberg'sche Group (D)Heineken Italia S.P.A. (I)H.J. Heinz Company of Canada (C)Keebler Company (USA)Lacto Ibérica (ES)Lever AG (CH)Mövenpick (CH)Mott's North America (US)Nestlé (GB)Philip Morris Europe (CH)Quaker StateQ.U.F. Industries LTD (AU)Schweppes, S.A. (E)TSB (ZA)Unicer (PT)Unilever SA (Pty) Ltd (ZA)Van Houten GmbH & Co. KG (D)Wrigley GmbH (D) Arrocera CovadongaAmecke-Mönninghof (D)Alfred Ritter (D)Astra-CalveAnheuser-Busch Companies (US)appetito AG (D)Bahlsen UK Limited (UK)Bitburger Brauerei (D)Borden, Inc.Boston Beer (US)British American Tabacco (D)Cadbury LTD (GB)Carlsberg A/S (DK)Cameo S.P.A. (I)Compass Group USACorporacion CressidaCPC International (USA)Cultor Food Science, Inc. (USA)Danone SA/NV (B)DeKalb Genetics Corporation

41. Selected Customers on Non Food Industry Adidas-Sarragan France (F)Bally AG (CH)Beiersdorf SA/NV (B)Black & Decker Corporation (USA)Bosch-Siemens Hausgeräte (D)Bose Corporation (US)Braun AG (D)Cheseborough-Ponds USA (US)Colgate-Palmolive (US)Edding AG (D)Elida Gibbs (I)Heissner GmbH (D)Helene Curtis Limited (C)Henkel (different subsidiaries)Hoffmann Group (CH)Fantom Technologies, Inc. (C)JBL Professional (US) Johnson & Johnson (US)Lego Sverige AB (S)Lever EuropeOsram Sylvania Inc (US)Original Bradford Soap Works, Inc. (USA)Pacific Coast Feather Company (USA)Pioneer Electronic Corporation (J)Procter & Gamble Company (US)Reebok Russia (R)Rolex SA (CH)Samsung (South Korea)Sony Corporation of HK Ltd (HK)Villeroy & Boch AG (D)Wellmann Group(D)Vileda GmbH

42. SAP - the company • SAP AG in 1998 revenues: 8.47 Bill. DEM (5.05 Bill. USD) • Largest dedicated software applications company • Market Leader in Enterprise Applications Software Licenses(36% market share amongst TOPTEN; IDC, 1999) • 10,000+ customers* in 100+ countries team with us to • Extend their competitive capabilities • Integrate their business processes • Get a better return on information at a lower total cost of ownership • Focused on users in all enterprises regardless of size • Increased customer satisfaction and stronger customer loyalty • Heavy investment into SAP’s worldwide business community • 20,400+ SAP employees (as per March 1999) * 21,500+ R/3 installations and 1,000+ R/2 installations (June ‘99)