FH Südwestfalen 20 Jahre TBW Der Wirtschaftsingenieur als Change Agent

1. FH Südwestfalen20 Jahre TBWDer Wirtschaftsingenieur als Change Agent Klaus Langenberg Business Unit Director SAP Norge AS 30.10.2009

2. Disclaimer ”This presentation is a personal reflection and only contains my personal views, thoughts and opinions. It is not endorsed by SAP nor does it constitute any official communication of SAP”

3. Warmup Persönliche Potenzialanalyse! Welche Aufgabe hat der Change Agent?

4. CV Klaus Langenberg 1990 – 1994 Abschluss als Diplom Wirtschaftsingenieur FH 1993 – 1997 Consultant Itelligence AG Finanzbuchhaltung/Controlling Product Costing (MM/PP/FI-CO) Integration Manager 1997 – 2003 Gründer und Managing Director Itelligence Norge AS Startup from scratch: Koffer/Telefon Ausbau auf 30 Mitarbeiter IPO 1999

5. CV Klaus Langenberg 2003 – heute SAP Norge AS Projektleiter (3 Monate) Business Unit Director/Country Manager Field Services 2005 Teilnahme an Top Management Seminar 150 out of 40500 Strategical Management Program 2007 Teilnahme Top Management Seminar India, Global Delivery Concepts Alltime Aktiv auf Xing, LinkedIn

6. Der Wirtschaftsingeneur als Change Agent: 1 Ausgangssituation 2 Ziele 3 GAP’s & How we closed them

7. SPM – 2006 Highlights - + Product Profitability Ø Services Profitability Ø Maintenance Lost (L4Q) Ø Field Services Productization Ø Customer Benefits Rating Ø ROI References Ø Target Industries with #1 Rank Customer Net Promoter Score Ø Ø Partner Net Promoter Score Active ISVs Ø Ø Promotions From Top Talent Ø § Missed Expectations on SW Revenue While Meeting Product Revenue § Operating Margin Exceeded Expectations ã SAP AG 2007 / FSMP / FS Strategic Imperatives & You / Bernd - Michael Rumpf / 0 1: Ausgangssituation

8. A job well done – are we really ready for the future? We know basically what it takes to run this business successfully Performing Transforming (?) There are not many in our peer-group with such a performanceand profile Profitability Organic growth Dealing continuously with new products Can we continue like this and is it enough? Contribution to customers and SAP Field Services Contribution Past 2008/2009 Future

9. Significant challenges lie ahead of us Customers • Flexibility, Consolidation • Reduced TCO • Risk mitigation • Bridging IT and Business • 100’000 customers • Business Suite only 50% • BPP/eSOA as new paradigm • ERP 2005 as the basis • Industrialised services • Distributed Delivery Service Market SAP Business-Model Financials • Enlarged Partner EcoSystem • Co-Innovation by Partners • Restructuring of Service Providers It’s not the IF, it’s the WHEN and HOW STRONG.

10. Significant challenges lie ahead of us: Customers Customers • Flexibility, Consolidation • Reduced TCO • Risk mitigation • Bridging IT and Business • 100’000 customers Financials It’s not the IF, it’s the WHEN and HOW STRONG.

11. 5% 15% 15% 22% 65% 32% 33% 13% Managing Relationships 23% Cost Containment 23% Business Process Innovation 14% New Products or Services 10% New Markets & Channels 10% Compliance 8% Mergers & Acquisitions 5% • Source: SAP study Customer needs are changing Extent of Fundamental Change Needed Over the Next Two Years Past Level of Success at Managing Fundamental Change Very successful No change experience Significant change Little to no success Moderate change Successful CEO's Perspective Little or no change Some success Source: IBM Global Business Services, CEO survey (765 CEOs), FKOM 2007 Company Priorities

12. Significant challenges lie ahead of us: SAP Business Model • Business Suite only 50% • BPP/eSOA as new paradigm • ERP 2005 as the basis SAP Business-Model Financials • Enlarged Partner EcoSystem • Co-Innovation by Partners It’s not the IF, it’s the WHEN and HOW STRONG.

13. SAP’s business process platform generates new opportunities and challenges Be frontrunner for new applications and technology • Design the way forward • New solutions, user groups and platform • Across and beyond SAP • End-to-end support • Different way of working

14. Significant challenges lie ahead of us: Service Market • Industrialised services • Distributed Delivery Service Market Financials • Restructuring of Service Providers It’s not the IF, it’s the WHEN and HOW STRONG.

15. Availability of standard Education offerings for partners/customers Training of consultants Participation in testing activities Changing the fulfillment model Installations Knowledge Management Creation of partner/customer enablement offerings Productized Services Service Productization Hubs Service Engineering Global Delivery Proactive Feedback Time DEVELOPMENT DEVELOPM. RAMP-UP RAMP-UP GENERAL AVAILABILITY

16. Significant challenges lie ahead of us Customers Customers Service Market SAP Business-Model Financials Are We Ready?

17. Check Film mit 28 sekündiger Dauer Zählen Sie die Anzahl der Ballwechsel zwischen den weissen Spielern!

18. Basketballfilm 12 Pässe? 15 Pässe? Die Moral der Geschichte Selective Perception! Welche Rolle hat der Change Agent?

19. Der Wirtschaftsingeneur als Change Agent 1 Ausgangssituation 2 Ziele 3 GAP’s & How we closed them

20. 2: Ziele • Market Fit • Strategic Fit • Performance Fit

21. Der Wirtschaftsingeneur als Change Agent 1 Ausgangssituation 2 Ziele 3 GAP’s & How we closed them

22. The Objective is to Balance Contradictory Pressures Market Fit Strategic Fit Performance Fit

23. Will Today’s Service Portfolio Deliver on Our Strategy? • Three areas to test: 1 Market Fit • Does it address changes happening in the market? • Does it create sufficient value for our customers? • Does it differentiate us from competitors? 2 Strategic Fit • Does it support SAP’s key strategic objectives?(such as market making for new products, expandedcustomer base/SMEs, leveraging partners to improvevalue for money and reach) 3 Performance Fit • Can I continue to meet my budget? • Can I maintain quality/integrity? • Does it offer a career path for my people?

24. Our Portfolio Today? Products c.v’s

25. Dividing Up the Service Portfolio: First Cut PLAN-Services Classic Implemen-tations RUN-Services (IT Excellence) Safeguarding/QA Education

26. Assessing the Structure of Today’s Service Portfolio • Plan Services • Business process consulting • Business consulting type services • Architectural services/concepts • Classic Implementations • Prime implementation • Subcontracted implementation • Spot consulting (staff augmentation) • Run Services • IT excellence, SLO, Upgrades • Safeguarding/quality assurance • Education • Training, academy, e-learning • Product • Mercury, RWD/Infopack, MaxAttention (AGS), Safeguarding (AGS), CDP, Etc

27. Alternative/Additional Ways of Looking at Our Portfolio • Software • Mercury • RWD/Infopack • CDP • Projects • Programme and project management • Quality and risk management • Expertise/Spot • Solution and architectural design • Various types of spot consulting • Business and IT strategy consulting • IT Excellence • SLO, Upgrade, etc • Education • Training, academy, e-learning

28. Changes in Products/ Technologies Opportunities/Challenges Responses Changes in Partner Behaviour Changes in Customer Behaviour Opportunities/Challenges Responses Opportunities/Challenges Responses Changes Among Competitors Opportunities/Challenges Responses What Are The Most Important Market Pressures hitting Your Business? The Squeeze!

29. For example: • Changes in Customer Behaviour • Fixed price contracts versus “time and materials” • More business users versus transaction users • Increased influence of CEO/business heads versus IT in decisions • Growth into customers with limited/no in-house IT capability • Etc. • Changes in Partner Behaviour • Pressure for increase value added • Focus on efficiency/repeatability versus “one-off” projects • More global fulfilment • Larger number of less sophisticated partners • Changes in Product/Technology • ESOA, BPP, Etc • Pre-configuration • More ISVs • Competitor moves • Competing visions (IBM?) • Competing processes, e.g. BPO, Salesforce.com

30. Will Today’s Service Portfolio Deliver on Our Strategy? • Three areas to test: 1 Market Fit • Does it address changes happening in the market? • Does it create sufficient value for our customers? • Does it differentiate us from competitors? 2 Strategic Fit • Does it support SAP’s key strategic objectives?(such as market making for new products, expandedcustomer base/SMEs, leveraging partners to improvevalue for money and reach) 3 Performance Fit • Can I continue to meet my budget? • Can I maintain quality/integrity? • Does it offer a career path for my people?

31. What is the Contribution of Different Offerings to FS/SAP Strategic Goals? High BProcess &Platform Services 5 4 Contribution to Strategic Goal 3 Appl. Impl. 2 1 Low CustomerValue Add MarketMaker Partner Enable Mid-Size Enable Industrial Fulfilment Other?

32. Will Today’s Service Portfolio Deliver on Our Strategy? • Three areas to test: 1 Market Fit • Does it address changes happening in the market? • Does it create sufficient value for our customers? • Does it differentiate us from competitors? 2 Strategic Fit • Does it support SAP’s key strategic objectives?(such as market making for new products, expandedcustomer base/SMEs, leveraging partners to improvevalue for money and reach) 3 Performance Fit • Can I continue to meet my budget? • Can I maintain quality/integrity? • Does it offer a career path for my people?

33. Performance Improvement Re-positioning Three Main Types of Shift in the Portfolio High Contribution to Meeting Budgeted Profit Growth, Contraction, Outsourcing Low Low High Contribution to Strategic Goal

34. Industrialized Services (8%) Industrialized Services (3%) Executive Advisory Services (5%) Executive Advisory Services (1%) Exceed Target Exceed Target Quality Assurance (17%) Application Implementations Services (75%) Business Process & Platform Services (6%) Business Process & Platform Services (35%) Target Target Quality Assurance (12%) Application Implementations Services (35%) Below Target Below Target Low Low Medium Medium High High SAP Consulting Will More and More Become a Process Company From Implementation Consulting today… … towards a service-oriented Process Company Target Profitability Target Profitability Size of Bubbles = Revenue Share Size of Bubbles = Revenue Share Strategic Fit 2010 Strategic Fit 2010 Source: Consulting Interview, 2010 view is inspirational indication

35. Replace, recruit, develop Proper handling of low performers Always recruit A Players Key role of managers: Develop and Manage to Improve Performance LOW PERFORMANCE HIGH Does not meet expectations Partially meets expectations Meets expectations Exceeds expectations Consistently exceeds expectations 10% 5% 10% 5-10% 70-75%

36. Business Expert Cons. for SAP Composites & Repository A-C-S-P Application Consultant Project Member Test conception & support for all test activities A-C-S-P Software Blueprint for Individual Development S-P Test Management Consultant Customer PL Development Architect Integr. Development A-C-S-P Cust Develop.Lead Integr. Development Cons. Custom Development Lead IT Skill Transformation: What Are My Opportunities? The new service portfolio needs a more specialized set of skills. The strategic development of our consultants follows a set of transformation paths. Programm Manager P-M Legende Field of Activity Organisational Expert C-S-P SAP Comp. Profile Change Management Expert S-P Customer Role P-M Project Manager S-P Strategic Analysis for Corporate Funct.& Industry Processes P-M Develop IndustrySolution Portfolio M = Manager P = Principal Quality Management Consultant C-S-P S = Senior Solution Portfolio Strategist C = Consultant Business Strategist CIO/CEO/Business Owner A = Associate C-S-P Process Implementation C-Level SAP C Mgmt Marketing Process Implementation Consultant Customer PL Business Analysis/Concepts C-S-P Transformation Concept: Process, IT,Organization P-M Detailed Designof Core Processes S-P Detailed Mapping Process -> Application Business Expert Bus. Transf. Manager Bus. Solution Architect Business Manager CEO Process Owner P-M TransformationConcept IT Strategy P-M IT Strategy Enterprise ITArchitecture Design IT Transf. Manager CIO IT Strategist C-Level P-M S-P S-P Technical Studies & Advisory Design Technology Infrastructure System Management Concept Expert Consulting for Technical Components Support/Optimize System Mgmt Technology Strategist Techn. Sol. Architect System Management Expert Technology Cons. A-C-S-P CIO IT Director System Manager Project Member Process Level Enterprise Level Application/Technology Level Plan Build Run

37. Enterprise SOA, PLAN & Customer Process Innovations • ERP upgrades • IT Operations • Custom Development • NPI, key solutions, Ramp-Up (e.g. CRM) • Blended education offerings • Workforce readiness • Employer of choice The action plan to master the challenges is defined Enable growth in SME Expand value for Large Enterprises • A1S Ramp-Up Drive early adoption of new solutions Enable and expand the partner ecosystem • Grow the ecosystem • Distributed Delivery &optimized operations Change continuously our fulfillment Fosterpersonal growth

38. Planned Strategy Weed or Flower? Missed Opportunities Unexpected Opportunities Accumulated Decisions Actual Strategy Planned versus Actual Strategy

39. Good Strategy Execution =Planning + Opportunism Stability on the “What”, Flexibility on the “How” SAP Future Weeds Expectation Flowers Weeds NOW Time

40. Results 419 % Wachstum in der Topline (2004-2008) Profitability verdreifacht Bei konstantem Headcount Und branchenüberdurchschnittlicher Mitarbeiterzufriedenheit

41. Mein persönliches Fazit Die Breite des Studiums öffnet alle Türen  Probieren ! Zu Beginn war es wichtig schnell viele Unternehmen und deren Herausforderungen kennenzulernen – Beratungsunternehmen sind m.A. nach ideal Was spannendes gefunden?  Profi werden Personalverantwortung übernehmen - Wagen Persönliche Strategie überprüfen – Job/Familie/Gesundheit

42. Mein persönliches Fazit Studium bildet Ideale Plattform um als Change Agent zu arbeiten The Team is all! Verantwortung delegieren an die Top Experts Ergebnisse konsolidieren Strategie festlegen, revalidieren Lass Dein Team als Gewinner dastehn!

43. Dankeschön Prof. Liese Opportunitätskosten Prof. Wenk Zerreissprobe plastische /elastische Verformungen + Eisen-Kohlenstoffdiagramm Prof. Johannes Entity Relationship Model Prof. Grillo CD/Corp. Identity Klaus Müllner/Edwin Keuchler Englisch/Französisch Christoph Glatz Post Networking

44. Fragen?