The Conference


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Now wait a minute ! You'll tell me, "this makes sense, but how can we do this with this kind of cost structure ?" This is true, and TCO reduction is a clear priority. To get the kind of reduction we need, it will take a coherent approach at all levels of the "stack", from technology to the way we deploy solutions. We believe we can achieve significant reduction, provided we accept to stop over-sophisticating solutions to simple issues. Part of this can be re-invested into innovative use of IT to make a real difference in the areas we've just seen, and we'll talk about this. But for this, we have to make sure that sure that the resources we freed from operations don’t' end up tied in the next potential "black hole" of IT budgets, integration : adding new IT-solutions for innovation and adaptability will create variety, with variety comes complexity and we have to consolidate and simplify the landscape again, we must avoid that consolidation ends up eating 60 % of IT budgets and we are back to zero , and the risk is high if we look to all the different pieces of technologies and services offered and used to connect and integrate disparate systems !   The only solution is to move towards standards at an accelerated pace so that inter-operability becomes the norm. This is a main driver of SAP's technology strategy. We want to make our solutions "integrative", i.e. not only providing interfaces, but also having the built-in tools to seamlessly integrate their environment. With SAP, consolidation and innovation will not be an either-or proposal .
  • The Conference

    1. 1. SAP 2003: Your Technology and Business Roadmap Jim Shepherd Senior Vice President AMR Research
    2. 2. Agenda <ul><li>SAP’s Business Strategy </li></ul><ul><li>SAP’s Product Strategy </li></ul><ul><li>SAP’s Technology Direction </li></ul><ul><li>What Should You Worry About ? </li></ul><ul><li>Maximizing The Value of Your SAP Investment </li></ul>
    3. 3. SAP Snapshot <ul><li>7.4B € in FY02 Revenues </li></ul><ul><ul><li>56% from Maintenance and Services </li></ul></ul><ul><li>FY03 Expectation: Flat Revenue, Improved Profits </li></ul><ul><li>19,300 Customers </li></ul><ul><li>50,000+ Installations – 120+ Countries </li></ul><ul><li>23 Industry Solutions </li></ul>
    4. 4. SAP’s Business Strategy <ul><li>Account Control- “The Reliable Business Partner” </li></ul><ul><li>Growth – “Influence Greater Share of IT Spending” </li></ul><ul><li>Customer Lifecycle Management - </li></ul><ul><ul><li>“ ROI -SAP Delivers Value </li></ul></ul><ul><li>Services, Maintenance, & Add-ons </li></ul><ul><li>New Markets and Channels </li></ul><ul><li>“ We don’t want to be just the safe haven– Consider us your trusted innovator” </li></ul><ul><li>Henning Kagermann – Sapphire 2003 </li></ul>
    5. 5. CIO Issue Source: SAP AG 10% 4 0% OPERATION CONSOLIDATION INNOVATION 30% 60% Today 3 years from now 20 -25 % 35-4 0%
    6. 6. SAP Business Strategy: Infrastructure Consulting Infrastr. Software Technical Support Infrastructure Support Business Software Business Consulting System Support Out- sourcing System Integration Discover & Evaluate -> Implement -> Operate Hardware OS, DB, ... Strategic Consulting Application Layer Middleware Layer IT Layer Source: SAP AG Become Your “Trusted Partner” System Integration System Integration*
    7. 7. SAP Business Strategy: <ul><li>New Maintenance Offerings </li></ul><ul><li>Architecture Planning </li></ul><ul><li>Custom Development </li></ul><ul><li>Consulting </li></ul><ul><li>System Integration </li></ul><ul><li>Operations Planning & Optimization </li></ul><ul><li>Hosting / Outsourcing </li></ul>“ Extended Range of Services”
    8. 8. SAP Business Strategy: Source: SAP AG SAP Direct Sales Vertical Resellers Business One Centers Sales/Service Partners New Markets and Channels
    9. 9. SAP Product Strategy: SAP NetWeaver SAP for <Industry> <ul><li>SAP Enterprise Portal </li></ul><ul><li>SAP Master Data Mgmt. </li></ul><ul><li>SAP Business Intelligence </li></ul><ul><li>SAP Exchange Infrastructure </li></ul><ul><li>mySAP Business Suite </li></ul><ul><li>mySAP ERP </li></ul><ul><li>mySAP CRM </li></ul><ul><li>mySAP SCM </li></ul><ul><li>... </li></ul><ul><li>SAP xApps </li></ul><ul><li>SAP xApp Resource & Program Management </li></ul><ul><li>SAP xApp Mergers & Acquisitions </li></ul><ul><li>... </li></ul>SAP Smart Business Solutions <ul><li>mySAP All-in-One </li></ul><ul><li>SAP Business One </li></ul>SAP Packaged Solutions <ul><li>Service Management for <Industry> </li></ul><ul><li>Financial Insights for <Industry> </li></ul><ul><li>... </li></ul><ul><li>SAP Mobile Business </li></ul><ul><li>SAP Web AS </li></ul><ul><li>SAP for Aerospace & Defense </li></ul><ul><li>SAP for Oil & Gas </li></ul><ul><li>... </li></ul>Source: SAP AG All Things For All Buyers
    10. 10. SAP Customers Within Fortune 500 source: Fortune 500 2002; SAP Analysis Source: SAP AG SAP Vertical Market Penetration:
    11. 11. Current Application Strategy <ul><li>The Ever Expanding mySAP Business Suite </li></ul><ul><li>R/3 Enterprise or MySAP ERP ? </li></ul><ul><li>Scalability : All-in-One and Business One </li></ul><ul><li>The xApps (Cross-Applications) Framework </li></ul>
    12. 12. The Ever Expanding mySap Business Suite Source: SAP AG Business Partners World Internet Extranet Enterprise Group ENTERPRISE COLLABORATION Advanced Supply Chain Planning Customer Relationship Mgmt Business Warehousing Intranet R/3 Logistics R/3 Accounting R/3 HR R/3 Fulfillment ... B2B Procurement Strategic Enterprise Management Strategic Enterprise Management Knowledge Warehouse Comprehensive e-Business Solutions Industry-Add-ons Portals Marketplaces Supply Chain Hubs Collaborative Engineering E-Recruiting Electronic Bill Presentment & Payment Collaborative Forecasting
    13. 13. SAP Product Strategy: Headquarters Factory Distributor SAP R/3 Enterprise SAP Business One Sales Subsidiary SAP All-in-One Exchange Infrastructure Source: SAP AG Scalability
    14. 14. SAP Product Strategy: <ul><li>xApps are </li></ul><ul><li>Packaged Composite Applications. </li></ul><ul><li>They deliver new end-to-end business processes, that snap-on to an existing </li></ul><ul><li>IT environment. </li></ul><ul><li>Start out as separate next practices but migrate to suite-based best practices </li></ul>Source: SAP AG xApps New, snap on cross-functional business process Existing applications and data sources xApp
    15. 15. Source: SAP AG Functional Transactions (Hindsight) SCM CRM PLM H R Finan- c ials Legacy Desk - top/ Office Support SRM SAP xApp Employee Productivity SAP xApp Resource and Program Mgmt SAP xApp Product Definition SAP xApp Mergers and Acquisitions Announced xApps Business Views, Events (Context & Insight)
    16. 16. R/3 Enterprise SAP Web Application Server 6.20 Replaces Basis Server Provides J2EE and ABAP Support Common Foundation for all Components 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 <ul><li>SAP R/3 Enterprise Core 4.7 </li></ul><ul><li>All Existing R/3 Functionality </li></ul><ul><li>Future Changes limited to: </li></ul><ul><ul><ul><ul><ul><li>Legal Changes </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Defect Fixes </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Performance Enhancements </li></ul></ul></ul></ul></ul>
    17. 17. R/3 Enterprise Rollout <ul><li>New “Ramp-up” Release Process </li></ul><ul><li>~200 Customers in Controlled Release Phase </li></ul><ul><li>1000’s of Copies Shipped Since January </li></ul><ul><li>Reports From Customers Are Very Positive </li></ul>Internal Customer Release Restricted Shipments Unrestricted Shipments 7/02 12/02
    18. 18. mySAP SCM mySAP PLM mySAP SRM mySAP CRM mySAP ERP Financials Human Resources Corporate Services Operations Maintenance & Quality Inventory & Production Sales Order & Delivery Management Purchase Order Management SAP NETWEAVER mySAP Business Suite Source: SAP AG
    19. 19. SAP NetWeaver Corporate Services Operations Management Human Resources Financials Employee Relationship Management Employee Lifecycle Management Employee Transaction Management Purchase Order Management Maintenance & Quality Production Management Inventory Management Corporate Real Estate Management Incentive & Commissions Management Travel Management Application Platform Process Integration Information Integration People Integration mySAP ERP Analytics Financial Analytics Workforce Analytics Operations Analytics Strategic Enterprise Management Delivery Management Sales Order Management Financial Accounting Financial Supply Chain Management Management Accounting Source: SAP AG
    20. 20. SAP Migration Strategy mySAP SCM mySAP CRM + + <ul><li>mySAP Business Suite </li></ul><ul><ul><li>Customer can buy and deploy mySAP Business Suite </li></ul></ul>+ mySAP SCM mySAP CRM + R/3 E nter - prise SAP NetWeaver Quickstep Packages + <ul><li>mySAP ERP </li></ul><ul><ul><li>Customer can buy and deploy mySAP ERP </li></ul></ul><ul><li>Combining mySAP ERP & Solutions </li></ul><ul><ul><li>Customer can combine mySAP ERP with mySAP Solutions </li></ul></ul><ul><li>Combining R/3E & Parts </li></ul><ul><ul><li>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 </li></ul></ul>SAP NetWeaver mySAP Business Suite SAP NetWeaver mySAP ERP SAP NetWeaver mySAP ERP + + + Quickstep Packages + + 1 2 3 4
    21. 21. SAP NetWeaver Source: SAP AG <ul><li>New technology foundation of MySAP products </li></ul><ul><li>Centralized collection of SAP technologies </li></ul><ul><ul><li>Application Servers </li></ul></ul><ul><ul><li>UI Management </li></ul></ul><ul><ul><li>Integration Framework </li></ul></ul><ul><ul><li>Security </li></ul></ul><ul><ul><li>Business Process Mgmnt </li></ul></ul><ul><ul><li>Data Warehousing </li></ul></ul><ul><ul><li>Portal Framework </li></ul></ul><ul><ul><li>Etc. </li></ul></ul><ul><li>Neutral positioning toward IBM WebSphere and Microsoft .NET </li></ul>.NET Web- Sphere … DB and OS Abstraction People Integration Composite Application Framework Process Integration Integration Broker Business Process Management Information Integration Business Intelligence Knowledge Management Life Cycle Management Portal Collaboration J2EE ABAP Application Platform Multi-Channel Access SAP NetWeaver™ DB and OS Abstraction Master Data Management
    22. 22. What Should You Be Worrying About ? <ul><li>Instance Consolidation </li></ul><ul><li>New Functionality </li></ul><ul><ul><li>PLM, APO, Portals, CRM, etc. </li></ul></ul><ul><li>Release Strategy & Expectations </li></ul><ul><ul><li>R/3 Enterprise, MySAP ERP, MySAP Business Suite ? </li></ul></ul><ul><li>Extended Deployment </li></ul><ul><ul><li>Internally </li></ul></ul><ul><ul><li>Externally </li></ul></ul>
    23. 23. Maximizing Your SAP Investment <ul><li>Competency Center -- Business Process Improvement Not A Help Desk! </li></ul><ul><li>Continuous Training & Education </li></ul><ul><li>Enterprise Performance Management (EPM) </li></ul><ul><li>Network Theory -- A system becomes more valuable as it touches more users </li></ul><ul><li>Any ERP System Needs Better Public Relations </li></ul>