Webinar SAP Jam: Forrester’s Take On SAP’s Core Applications In 2013

1. WebinarSAP Jam: Forrester’s Take On SAP’s Core Applications In 2013 Mike Gilpin, Vice President, Research Director Paul D. Hamerman, Vice President, Principal Analyst Liz Herbert, Principal Analyst China Martens, Analyst George Lawrie, Vice President, Principal Analyst William Band, Vice President, Principal Analyst May 29, 2013. Call in at 10:55 a.m. Eastern time #ForrSAPJams

2. Agenda • ERP and HCM portfolios • CRM • Modernization • Evolving your ERP application strategy • The SAP ecosystem

3. ERP and HCM portfolios

4. Business Suite on HANA is available now, but significant refactoring will be done to optimize for in-memory

5. SAP has improved the UI for frequently used functions with Fiori

6. Business ByDesign: SaaS ERP traction is much less than what SAP hoped

7. Business One for smaller companies is now available as SaaS

8. Forrester Wave™: Learning And Talent Development, Q1 ‘13: SAP’s SuccessFactors leads Source: April 10, 2013, “The Forrester Wave™: Learning And Talent Development, Q1 2013” Forrester report

9. SAP is investing in SuccessFactors Employee Central for SaaS core HR

10. CRM

11. SAP has a strong position in the CRM apps space Source: July 9, 2012, “The Forrester Wave™: CRM Suites For Large Organizations, Q3 2012” Forrester report

12. But CRM is moving to the cloud “What are your firm’s plans to use software-as-a-service (SaaS) to complement or replace your customer relationship management (CRM) applications?” Base: 537 executives and technology decision-makers using CRM software from SMB companies (20 to 999 employees) and 601 executives and technology decision-makers using CRM software from enterprise companies (1,000+ employees); Source: Forrsights Software Survey, Q4 2012

13. SAP focuses its SaaS strategy on four functional pillars plus ERP SAP’S SAAS BUSINESS IS GROWING; TODAY IT GENERATES MORE THAN €1 BILLION IN REVENUE

14. SAP 360 Customer comprises both cloud and on-premises solutions SAP 360 Customer with SAP Customer Engagement Intelligence suite SAPCustomer Engagement Intelligence (HPA*) • Mobile apps • Mobile sales • Mobile service • Customer briefing • Sales diary • Socialcollaboration • SAP JAM • Customer on demand (cloud) • Sales on demand • Service on demand • Social on demand SAP360Customer Sales Marketing Service Webchannel Interaction center Customer valueintelligence SAP CRM(on-premises) Account intelligence(mobile) SAPCRM SAPCRMonHANA Audience discovery and targeting Analytics SAP HANA *High-performance applications

15. Why modernize? Protect investment. Deliver agility. Capitalize on new technologies. Exploit new markets and business models. Empower employees.

16. Modernization considerations Performance Simulation and change management User interface

17. Performance Source: forthcoming Forrester report

18. Modernizing the user experience Source: forthcoming Forrester report

19. Forrester’s modernization tips Deploy the right tools for delivering user experience. Desktop, browser, and mobile Deploy the right tools for process re-engineering. Application modelling tools adapted to SAP Value analysis techniques Process extensions Deploy the right tools for performance and application life-cycle management. Performance management Application life-cycle management

20. Forrester’s modernization tips (cont.) Apply the right governance and methods. A UI governance board UI workgroups Engage the right partners with the right skills. Deep understanding of the technical implications of HANA File structure expertise

21. Evolving your ERP application strategy

22. Forrester’s business applications strategy approach Assess apps portfolio and processes. Set the strategy and vision. Build business apps road map. Execute, measure, and optimize. Define the target architecture. • Review business and IT strategies. • Assess current apps and technology environment. • Assess process capabilities. • Determine gaps. • Articulate the vision for business processes. • Define the technology innovation strategy to support the process vision. • Define scope and objectives of the strategy. • Develop a preliminary business case for the transformation. • Define functional architecture. • Identify technology characteristics and deployment methods. • Determine how current apps fit into future plans. • Map integration and data management strategies. • Define BI strategies and performance measures. • Define the IT/BT organizational model. • Define phasing priorities. • Assess buy versus build alternatives. • Determine candidate software suppliers. • Analyze project dependencies and time frames. • Define the business applications road map. • Calculate the (TEITM)business case based on costs, benefits, risks, and flexibility. • Select apps software and delivery vendors. • Implement specific phases of the road map. • Manage ongoing ownership costs. • Measure results achieved. • Optimize staffing resources and vendor relationships. • Start the whole process over. Source: Forrester Research, The Business Applications Playbook

23. Hub-and-spoke models of ERP standardization Source: October 19, 2010, “It’s Time To Clarify Your Global ERP Strategy” Forrester report

24. Hub-and-spoke models of ERP standardization (cont.) Source: October 19, 2010, “It’s Time To Clarify Your Global ERP Strategy” Forrester report

25. Business operating models determine ERP hub-and-spoke policies Source: October 19, 2010, “It’s Time To Clarify Your Global ERP Strategy” Forrester report

26. Comparison of choices for ERP spoke solutions Source: October 19, 2010, “It’s Time To Clarify Your Global ERP Strategy” Forrester report

27. Comparison of choices for ERP spoke solutions (cont.) Source: October 19, 2010, “It’s Time To Clarify Your Global ERP Strategy” Forrester report

28. The SAP ecosystem

29. Forrester Wave™: SAP Service Providers, Q2 ’11 Update coming H2 2013 Source: April 20, 2011, “The Forrester Wave™: SAP Services Providers, Q2 2011” Forrester report

30. Evolving services landscape for SAP services Wipro Siemens TCS Monitor Accenture Deloitte HP Atos Answer-think Ubermind IBM CSC Cognizant Clarkston PwC PRTM AT&T SEAL Yash Fujitsu Diamond Back-Office EPAM Infosys HCL Itelligence Sparta Neoris CGI Lode- stone NTT Axon KPIT Logica Bluefin Intelligroup Keane Optimal

31. Global delivery utilization continues to grow Need to drive down costs War for talent (especially more technical skills) Not just support services but also implementation Industry norm is above 50% in implementation deals and above 80% in support. Global delivery is more than just India: Eastern Europe, Latin America, domestic sourcing, and others.

32. Outcome-based pricing models are emerging — in project and support work Greater potential for process improvement Allowing suppliers to wield a greater share of their process maturity for the customer’s benefit Improved foundation for knowledge retention Suppliers responsible for their own staffing Reduced need to continually negotiate levels of effort Possible foundation for innovation Better potential for savings with productivity boost beyond labor arbitrage benefit Potentially a one-time benefit but on the order of 20% to 30% according to case history examples

33. Buyers look for prebuilt IP and accelerators Faster — 20% to 30% Ready-to-deploy code with flexible pricing options Reduced risk Faster time-to-value (on the order of 20% to 30%) Encapsulates best practices Examples: Data migration Industry-specific templates SAP’s Rapid Deployment Solutions (RDS) — by SAP and ecosystem

34. Mike Gilpin mgilpin@forrester.com Paul D. Hamerman phamerman@forrester.com Liz Herbert eherbert@forrester.com China Martens cmartens@forrester.com George Lawrie glawrie@forrester.com William Band wband@forrester.com