The Transformation to Business Process Excellence

1. The Transformation to Business Process Excellence Karl-Heinz Streibich, CEO

2. Today‘s business models operate on top of application silos Products Inno-vations Cus- tomers Markets BusinessModel IndividualApps ERP CRM IndividualApps Applications

3. Today‘s application software dilemma: Differentiation Innovation StandardizationEfficiency Individual Applications Standard Applications + + Custom Applications Custom Applications Packaged Applications Packaged Applications • Total cost of ownership • is high • Flexibility is low - - • Inside: frozen processes • Inside: frozen processes - -

4. Only 20 % of the relevant enterprise processes are covered by standard applications Some fit Good fit Processsolutions No fit

5. The missing layer: process management and standard integration Cus-tomers Products Inno-vations Markets Processes &Integration . . . BusinessModel Orderto cash Procureto pay IndividualApps ERP CRM IndividualApps Applications

6. Each layer is unique in required flexibility and speed Newcus-tomers Cus-tomers Newproducts Newinno-vations Products Inno-vations Newmarkets BusinessModel Markets Flexibility & CollaborationLayer Processes &Integration . . . . . . Changeprocess Orderto cash Newprocess Procureto pay Improveprocess IndividualApps ERP CRM IndividualApps Applications Modernization New imple-mentation Adoption Integration

7. The new enterprise software paradigm Process Solutions Flexibility + Collaboration Standard Applications Individual Applications

8. Extreme collaboration in the Digital Enterprise Data Architect Developer Process Worker Business Analyst Business Expert IT-Architect Process Owner Partner Manager Customers Partner Business Line Manager Supplier

9. Value of extreme collaboration: Accelerated process innovation 1 Close alignment between all stakeholders 2 Lowest possible total cost of ownership 3

10. Achieving Business Process Excellence – the total picture Design Strategize Implement Monitor& Control Enterprise BPM Compose Execute

11. Prioritization of processes for Process Excellence KPIs KPI Contribution Process Portfolio Process Landscape

12. Operational KPI‘s must be as transparent as financial KPI‘s Financial Performance EBIT Turnover Cashflow … … Customer satisfaction Process cost Delivery reliability Cycle time Error rate OPERATIONAL EXCELLENCE

13. Implementation examples …improving standard of living through efficiency improvements and innovations for all enterprises. CPG & Retail Chemical/Pharma Manu-facturing Financials& PublicSector Paper,Textile Metal Service Industries Faster Claims Management Creating a Real-Time Value Chain Expects to save at least $2 million per year by mobilizing a real-time event-driven value chain that leverages existing systems and supports 30,000 delivery drivers and 11,000 merchandisers. Expenses and claims payments are reduced by 5%, saving $3.5 million annually. Speeding Customer On-boarding Improving Business Processes DYK Motors uses SOA to lower integration costs by up to 80% and speed up business process development by nearly 50%. from 2-3 weeks to 1 day resulting in a $1.92 million productivity gain. An 80% cost savings was achieved. Problems are resolved 50% faster.

14. Software AG - 2003 - 2011 EUR Software AG IDS Scheer takeover wM takeover Enterprise value: 2003: € 250 mn. Today: € 3.300 mn. +1.200% Goal: €1bn. Financial crisis

15. Software AG at a glance • Revenue over €1 billion • Global Leader forProcess & Integration Solutions • 10,000+ enterprise &public customers • Over 5,600 employees worldwide • 3,500 services consultants • 850 in R&D • Offices in 70+ countries • Software AG Foundation

16. Thank You!