The SearchSAP.com Conference

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
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

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

CIO Issue Source: SAP AG 10% 4 0% OPERATION CONSOLIDATION INNOVATION 30% 60% Today 3 years from now 20 -25 % 35-4 0%

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*

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

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

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

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

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

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

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

SAP Product Strategy:
xApps are
Packaged Composite Applications.
They deliver new end-to-end business processes, that snap-on to an existing
IT environment.
Start out as separate next practices but migrate to suite-based best practices
Source: SAP AG xApps New, snap on cross-functional business process Existing applications and data sources xApp

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)

R/3 Enterprise SAP Web Application Server 6.20 Replaces Basis Server Provides J2EE and ABAP Support Common Foundation for all mySAP.com 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
SAP R/3 Enterprise Core 4.7
All Existing R/3 Functionality
Future Changes limited to:
Legal Changes
Defect Fixes
Performance Enhancements

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

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

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

SAP Migration Strategy mySAP SCM mySAP CRM + +
mySAP Business Suite
Customer can buy and deploy mySAP Business Suite
+ mySAP SCM mySAP CRM + R/3 E nter - prise SAP NetWeaver Quickstep Packages +
mySAP ERP
Customer can buy and deploy mySAP ERP
Combining mySAP ERP & Solutions
Customer can combine mySAP ERP with mySAP Solutions
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
SAP NetWeaver mySAP Business Suite SAP NetWeaver mySAP ERP SAP NetWeaver mySAP ERP + + + Quickstep Packages + + 1 2 3 4

SAP NetWeaver Source: SAP AG
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
.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

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

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

The SearchSAP.com Conference

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