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SAP 2003: Your Technology and Business Roadmap

SAP 2003: Your Technology and Business Roadmap. Jim Shepherd Senior Vice President AMR Research. Agenda. SAP’s Business Strategy SAP’s Product Strategy SAP’s Technology Direction What Should You Worry About ? Maximizing The Value of Your SAP Investment. SAP Snapshot.

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SAP 2003: Your Technology and Business Roadmap

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  1. SAP 2003: Your Technology and Business Roadmap Jim Shepherd Senior Vice President AMR Research

  2. Agenda • SAP’s Business Strategy • SAP’s Product Strategy • SAP’s Technology Direction • What Should You Worry About ? • Maximizing The Value of Your SAP Investment

  3. SAP Snapshot • 7.4B € in FY02 Revenues • 56% from Maintenance and Services • FY03 Expectation: Flat Revenue, Improved Profits • 19,300 Customers • 50,000+ Installations – 120+ Countries • 23 Industry Solutions

  4. SAP’s Business Strategy • Account Control- “The Reliable Business Partner” • Growth – “Influence Greater Share of IT Spending” • Customer Lifecycle Management - “ROI -SAP Delivers Value • Services, Maintenance, & Add-ons • New Markets and Channels “We don’t want to be just the safe haven– Consider us your trusted innovator” Henning Kagermann – Sapphire 2003

  5. Today 3 years from now 10% 30% 40% INNOVATION 60% 20-25% CONSOLIDATION 35-40% OPERATION CIO Issue Source: SAP AG

  6. System Integration* System Integration SAP Business Strategy: Become Your “Trusted Partner” Strategic Consulting Discover & Evaluate -> Implement -> Operate Business Consulting Business Software System Integration System Support Out-sourcing Application Layer Infrastructure Consulting Infrastr. Software Infrastructure Support Middleware Layer Hardware OS, DB, ... Technical Support IT Layer Source: SAP AG

  7. SAP Business Strategy: “Extended Range of Services” • New Maintenance Offerings • Architecture Planning • Custom Development • Consulting • System Integration • Operations Planning & Optimization • Hosting / Outsourcing

  8. SAP Business Strategy: New Markets and Channels SAP Direct Sales Vertical Resellers Business One Centers Sales/Service Partners Source: SAP AG

  9. SAP Product Strategy: All Things For All Buyers SAP for <Industry> • SAP for Aerospace & Defense • SAP for Oil & Gas • ... SAP Packaged Solutions • Service Management for <Industry> • Financial Insights for <Industry> • ... • SAP xApps • SAP xApp Resource & Program Management • SAP xApp Mergers & Acquisitions • ... • mySAP Business Suite • mySAP ERP • mySAP CRM • mySAP SCM • ... SAP Smart Business Solutions • mySAP All-in-One • SAP Business One SAP NetWeaver • SAP Enterprise Portal • SAP Master Data Mgmt. • SAP Business Intelligence • SAP Exchange Infrastructure • SAP Mobile Business • SAP Web AS Source: SAP AG

  10. SAP Vertical Market Penetration: SAP Customers Within Fortune 500 source: Fortune 500 2002; SAP Analysis Source: SAP AG

  11. Current Application Strategy • The Ever Expanding mySAP Business Suite • R/3 Enterprise or MySAP ERP ? • Scalability : All-in-One and Business One • The xApps (Cross-Applications) Framework

  12. COLLABORATION Comprehensive e-Business Solutions Internet Portals Advanced Supply Chain Planning Marketplaces Customer Relationship Mgmt Extranet Supply Chain Hubs Business Warehousing Collaborative Engineering B2B Procurement Strategic Enterprise Management E-Recruiting R/3 Accounting Electronic Bill Presentment & Payment R/3 Logistics Strategic Enterprise Management Intranet R/3 Fulfillment Collaborative Forecasting Knowledge Warehouse R/3 HR ... Industry-Add-ons Enterprise Group Business Partners World ENTERPRISE The Ever Expanding mySap Business Suite Source: SAP AG

  13. SAP Product Strategy: Scalability Headquarters mySAP.com Distributor Exchange Infrastructure SAP All-in-One Factory SAP R/3 Enterprise Sales Subsidiary SAP Business One Source: SAP AG

  14. SAP Product Strategy: xApp New, snap on cross-functional business process Existing applicationsand data sources xApps • xApps are • Packaged Composite Applications. • They deliver newend-to-endbusiness processes,that snap-on to anexisting • IT environment. • Start out as separate next practices but migrate to suite-based best practices Source: SAP AG

  15. Business Views,Events (Context & Insight) Announced xApps Desk-top/ Office Support HR Finan- cials PLM SRM SCM CRM Legacy SAP xAppResource and Program Mgmt SAP xAppMergers and Acquisitions SAP xAppEmployee Productivity SAP xAppProduct Definition Functional Transactions (Hindsight) Source: SAP AG

  16. SAP R/3 Enterprise Extension For SCM SAP R/3 Enterprise Extension For FIN SAP R/3 Enterprise Extension For HR SAP R/3 Enterprise Extension For Travel SAP R/3 Enterprise Extension For PLM • SAP R/3 Enterprise Core 4.7 • All Existing R/3 Functionality • Future Changes limited to: • Legal Changes • Defect Fixes • Performance Enhancements SAP Web Application Server 6.20 Replaces Basis Server Provides J2EE and ABAP Support Common Foundation for all mySAP.com Components R/3 Enterprise

  17. R/3 Enterprise Rollout • New “Ramp-up” Release Process • ~200 Customers in Controlled Release Phase • 1000’s of Copies Shipped Since January • Reports From Customers Are Very Positive Internal Customer Release Restricted Shipments Unrestricted Shipments 7/02 12/02

  18. 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 Source: SAP AG

  19. mySAP ERP Strategic Enterprise Management Analytics Financial Analytics Workforce Analytics Operations Analytics Financial Accounting Management Accounting Financial Supply Chain Management Financials Human Resources Employee Relationship Management Employee TransactionManagement Employee LifecycleManagement Purchase Order Management Inventory Management Delivery Management Production Management Maintenance& Quality Sales OrderManagement Operations Management Corporate Real EstateManagement Incentive & CommissionsManagement CorporateServices Travel Management SAP NetWeaver People Integration Information Integration Process Integration Application Platform Source: SAP AG

  20. SAP NetWeaver SAP Migration Strategy mySAPBusiness Suite • mySAP Business Suite • Customer can buy and deploy mySAP Business Suite 1 SAP NetWeaver mySAPERP • mySAP ERP • Customer can buy and deploy mySAP ERP 2 • Combining mySAP ERP & Solutions • Customer can combine mySAP ERP with mySAP Solutions SAP NetWeaver 3 + mySAP SCM mySAPERP + mySAP CRM + + Quickstep Packages + + • Combining R/3E & Parts • Customer can combine existing R/3 Installations with Solutions, SAP NetWeaver (also parts of it like e.g. Portal or BI) and with Quickstep packages 4 + mySAP SCM R/3 Enter- prise + mySAP CRM + SAP NetWeaver Quickstep Packages +

  21. SAP NetWeaver™ People Integration Composite Application Framework Life Cycle Management 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 NetWeaver • New technology foundation of MySAP products • Centralized collection of SAP technologies • Application Servers • UI Management • Integration Framework • Security • Business Process Mgmnt • Data Warehousing • Portal Framework • Etc. • Neutral positioning toward IBM WebSphere and Microsoft .NET Web-Sphere .NET … Source: SAP AG

  22. What Should You Be Worrying About ? • Instance Consolidation • New mySAP.com Functionality • PLM, APO, Portals, CRM, etc. • Release Strategy & Expectations • R/3 Enterprise, MySAP ERP, MySAP Business Suite ? • Extended Deployment • Internally • Externally

  23. Maximizing Your SAP Investment • Competency Center -- Business Process Improvement Not A Help Desk! • Continuous Training & Education • Enterprise Performance Management (EPM) • Network Theory -- A system becomes more valuable as it touches more users • Any ERP System Needs Better Public Relations

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