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SAP Future Directions: 2003 and Beyond

SAP Future Directions: 2003 and Beyond. Joshua Greenbaum, Principal Enterprise Applications Consulting www.eaconsult.com. Agenda . SAP’s World View and The Post-Hasso Era Enterprise Services Architectures and NetWeaver xApps Update Master Data Management

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SAP Future Directions: 2003 and Beyond

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  1. SAP Future Directions: 2003 and Beyond Joshua Greenbaum, Principal Enterprise Applications Consulting www.eaconsult.com

  2. Agenda • SAP’s World View and The Post-Hasso Era • Enterprise Services Architectures and NetWeaver • xApps Update • Master Data Management • Advanced SAP Anatomy: Business Suite & MySAP ERP • Conclusion

  3. SAP’s World View • Technology Is Evolving to Support a Services Architecture • Existing Applications Become The Infrastructure for Next Generation Applications, SAP’s Applications Must Become Services • Selling and Servicing the Installed Base • Seeding an xApp Market and Becoming A Technology Leader

  4. The Post-Hasso Era • Increasing Corp. Governance Needed from Supervisory Board • Hasso May Still Be Involved in Key Accounts, Technology Decisions • Dichotomy between Growth in a Mature Market and Maintaining Technology Innovation • Current Management Board Embodies This Split

  5. Enterprise Services Architecture: Evolutionary View User Logic User Logic User Logic Bus. Process Bus. Process Bus. Process Application Application Application Mainframe Client/Server Services Based Architecture Source: SAP

  6. Inside ESA • Service as Unique Piece of Business Logic or Process or Data That (Ideally) Uses XML or SOAP Interfaces • New Level of Abstraction for Business Logic • Deploy Anywhere: Portal, Wireless, “branch process” • The Staging Ground for Collaborative, Web-based Applications • Maintain Value of Existing Applications and Services

  7. People Integration Multi-Channel Access Portal Collaboration Information Integration BusinessIntelligence KnowledgeManagement Master Data Management Process Integration Business ProcessManagement Integration Broker Application Platform J2EE ABAP DB and OS Abstraction DB and OS Abstraction SAP’s ESA Offering: NetWeaver Composite Application Framework Life Cycle Management … .NET WebSphere Source: SAP

  8. Inside NetWeaver • Packaging: Bundling SAP’s Existing Technology • Technology Platform Challenger (re IBM, Microsoft, etc.) with Careful Attention to Compatibility • Development Platform for xApps • Seeding a Market for Third Party xApps and Internally Developed xApps (Java or ABAP-based) • Technical Requirements: Run WAS and Portal

  9. SAP Technology Directions: Implications & Recommendations • ESA is the Future, But is NetWeaver the Way to Go? • Do You Build Composite Apps or Buy Them? (IBM and Microsoft Are Pushing The Build Side) • Challenge: xApps Must Not Require Large Integration Budgets • Regardless, The Next Generation Applications Are Composite Applications

  10. SAP NetWeaver Challenges • XML and SOAP Interfaces For Existing Services • XML as Interpreted Language Means Throughput Issues • WAS and Portal Requirements Limiting? • Needs a Major Developer Push • ESA Platform Competition Will Heat Up

  11. xApps: Basics • Any Application that Uses Data and Business Processes From Other Applications and Data Sources to Provide Value-added Functionality Above and Beyond Existing Applications and Infrastructure • Run on Top of NetWeaver, Leverage the R/3 Apps • SAP’s Market Leadership Position • AKA Composite Applications: The Future of Enterprise Applications

  12. xApp Deployment Architecture Source: SAP

  13. xApps: Examples • xRPM: Resource and Program Management (SAP). Manage Project Portfolios, Execute and Staff Projects. • xVIP: Visual Information for Plants (NRX). Manage plant operations, maintenance, and management. Links SAP ERP to NRX’s Asset Content Management • xSPM: Service Performance Management (Digital Fuel).Manage Third Party Service Providers. Link SAP and non-SAP Processes to xSPM’s Service Flow Architecture

  14. xApps: Challenges • xApps Orthodoxy: What to Do About Other Composite Apps? • NetWeaver Orthodoxy: Can xApps be Deployed on Non-NetWeaver Platforms? • Needed: More xApps (Market Legitimacy Demands It) • Development Platform/SDK Needed • Integration/Adapters: More Needed • Third Party Certification Needed

  15. Master Data Management • The Universal Data Model: Repository of Master Data Definitions • Harmonize All the Data Sources: One Version of the Truth • Long Term Ambitions vs. Short Term Deliverables

  16. MDM Long Term Vision • One Version of the Truth • Single Source for All Data: SAP and non-SAP • Single Administrative Site for All Data Management • Repository of Master Data Objects That Define Specific Business Practices: Business-Specific Units of Measure • Connect Heterogeneous Environments • Linking Applications, Maintaining Consistent Data Among Different Data Sources/Applications • Control Corporate Data • Central Management and Process Control For All Systems (Internal and External)

  17. MDM Short Term Vision • Synchronize Data in SAP Environments First, Ensure Data Quality • Multi-instance, Multi-revision Environments • Limited Work with Customers for Vertical “Universal Data Models” • Version 1.0 Data Models: Product, Business Partner (Customer, Vendor, Supplier), Organizations Structure, BOM

  18. MDM Architecture Source: SAP

  19. MDM Components • Master Data Objects: Define the Business Objects • Product Master • Business Partner • Product Structure • Organizational Structure • Data Services: Manage the CMDM Environment • Data Management Services • Change Management • Distribution • Others • Content Integration, Data Staging (ODS), Adapters, Etc.

  20. MDM Technology • Runs on NetWeaver • Workflow is SAP-Only • BW Can Be Used, But Master Data in CMDM • Database Independent

  21. MDM Q3 Deliverables • Master Data Server (Object Definition and Deployment) • Content Integration • Exchange • Adapters • MDM Database

  22. MDM: What’s the Value? • De-duping • Huge Cost In M&A and Dynamic Businesses • Non-Management Costs Can Be Even Larger: Accuracy in Operations, Support and Service • SAP ROI Analysis: $4 million in Savings • Lower Overall Integration Costs • Consolidation and Collaboration • Economies of Scale for Data Can Match the Economies of Scale in the Rest of the Enterprise

  23. MDM: What’s the Catch? • Best for R/3 Centric to Start • Master Data Definitions Require A Harmonization Process FIRST (Remember BPR?) • Adapters, Adapters, Adapters • Horizontal To Start, But Better As a Vertical • The More You Do, the More You Integrate

  24. MDM: How To Get Ready • Think Master Data Objects • Think Process First: What are Real-world Benefits • Don’t Integrate Everything (Remember the Data Warehouse Overruns) • Get To Know NetWeaver

  25. Advanced SAP Anatomy • MySAP ERP: Simplify the Buy • What Can You Buy from SAP: • Business Suite: Everything • MySAP ERP: Core Business Functions • CRM/SCM/PLM/SRM as Standalones • Specific Engines: APO, CRM, for ex. • NetWeaver Everywhere • xApps Separate Line Item

  26. mySAP Business Suite mySAP Business Suite mySAPSRM mySAPSRM mySAPSCM mySAPSCM mySAPHR mySAPHR mySAP PLM mySAP PLM mySAPCRM mySAPCRM mySAPFIN mySAPFIN mySAP Solutions mySAP Solutions SAP Web Application Server SAP Web Application Server SAP NetWeaver SAP NetWeaver People Integration: SAP Enterprise Portal, Collaboration, … People Integration: SAP Enterprise Portal, Collaboration, … Information Integration: BI, KM, MDM, ... Information Integration: BI, KM, MDM, ... Process Integration: XI, Business Process Mgmt. Process Integration: XI, Business Process Mgmt. SAP Web Application Server People Integration: SAP Enterprise Portal, Collaboration, … Information Integration: BI, KM, MDM, ... Process Integration: XI, Business Process Mgmt. SAP R/3 Enterprise mySAP Business Suite mySAP ERP mySAPSRM mySAPSCM mySAP PLM mySAPCRM mySAPFIN mySAPHR mySAP Solutions Corp. Services Sales OrderMgmt PurchaseOrder Mgmt Inventory &Production Maintenance & Quality Operations SAP NetWeaver SAP NetWeaver Source: SAP

  27. mySAP Business Suite mySAP PLM Maintenance & Quality mySAP ERP Financials Human Resources Corporate Services Operations mySAP SRM mySAP CRM Purchase Order Management Sales Order & Delivery Management Inventory & Production mySAP SCM SAP NETWEAVER

  28. What Should Existing Customers Do? • Business Suite Customer • You’re Done • R/3 Enterprise Customer • Upgrade to MySAP ERP, Unless You Need More • APO Only (New Dimension Product) • Business Suite? MySAP ERP? SCM? • Pricing Favors Business Suite

  29. Conclusion: Keep Running in Place • SAP Management Changes: No Major Change • ESA: Change Your Thinking, Not Your Technology • xApps: Change How You View Apps and Infrastructures • MDM: Change How You Work with Corporate Data • MySAP ERP: Change How You Buy SAP Apps

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