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SAP Cloud Solutions for All Ariba Customers

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Now that Ariba is part of the SAP family, along with several other cloud acquisitions and investments, SAP is now the biggest cloud provider in the market! These solutions do not require that......

Now that Ariba is part of the SAP family, along with several other cloud acquisitions and investments, SAP is now the biggest cloud provider in the market! These solutions do not require that customers run SAP ERP, so even if your company runs Oracle, JD Edwards, Lawson, or other ERP systems, these cloud solutions might be a fit for you.

In this session, we will discuss the SuccessFactors HR Suite of Recruitment and Talent Management solutions, the SAP Travel and Expense Management solution, and the SAP Jam collaboration platform, in addition to an overview of the rest of SAP’s cloud portfolio. Is your company headed into the cloud? If so, don’t miss this session.

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  • Market here and shifting75% of all IT purchases cloud LoB 2016•   The market for public cloud services will top $107 billion by 2017•   And 60% of that $107 billion onSaaSDouble click APJ’s market oppor no less impressiveIDC research, 7 million new cloud jobs by 201552% of organizations across APJ are already using cloud solutions Cloud grow from $2.9 billion in 2012 to $32 billion by 2020. $32 billion with a Capital B!Multinationals in and outUndeniable cloud hereEvery marketNew competition from new companiesNo frictionKodak, Kickstarter, PebbleNew demands 5B– BRICJumped an entire tech generationMobile, social, highly connectedWon’t stand for apps that aren’t easy to use, consume, beautifulApps like ours today in the cloud (pause) Since the year 2000, 52% of Fortune 500 is gone: These companies have gone bankrupt, merged, or simply shut down because they were out-innovated. And guess what? Many of these were our customers. And the growth engine is no longer just Europe and North America. It’s now coming from non-traditional markets growing a new emerging middle class - like the 5Billion consumers in developing markets like Brazil, Russia, India, China, (BRIC) – who have a fluid digital proficiency, blending work and social, who are highly networked and mobile like never before. This pervasiveness of mobile and social are changing the way consumers interact, and their demands are changing the way companies deliver services and the operating models that support them. The line between consumer and enterprise has blurred beyond recognition, but c’mon – you know this already. Raise your hand if you don’t have a smartphone in your pocket.The better test is how many of you don’t have two with you this morning – and using it for both personal, and business – or both. TRANSITION : consequences are dramatic
  • In response to these mega-trends and pressures, more and more firms are looking to adopt cloud applications, infrastructure, database, and platforms – basically everything as a service.As you can see here, the level of investment and interest in the Cloud among companies is higher than ever.But the motivation for embracing the Cloud is far different than it was in the past…
  • All these factors are putting pressures not only on companies….but on each function and constituent within them.Today, your customer knows more about you and your brand…and your competitors than ever. In fact, 57% of the process of selecting a policy or new financial instrument is complete before you ever have your first interaction with a prospect. If you’re lucky enough to win new customers. You are likely to lose them. With more choices and new disruptive business models, customers are increasingly disloyal. 60% are willing to switch brands for better service. Emerging from the financial crisis, more regulations, reporting, and capital holdings requirements are being thrust upon business. CFOs must be able to identify risks not only in your company – but in your customer portfolio…and in your supply chain. And to top it all off, you are under greater profit pressures – so you must be vigilant about reducing costs and driving efficiency.
  • The Cloud is not just portfolio of beautiful appsIt’s about customer centricitycoordinated engagementcloud characterized as learning orgmetrics, KPIs, usage – drive innovationinteract in different way thru cloudcommunities – and how they interact with each otherand about frequent innovationAdoption higher so onceyou reach a certain scale, what’s known as the “network effect” kicks inensures companies gain even more momentum and mass adoptionwhich makes it harder for competitors to break in (Bill)Customers voice is criticalcommunicate socially and loudlyabout what they say when not in the roomremember Apple only once a year4x yr for usbut about consumption – has to be easy, no training, no manuals - simpleuser adoption is key to success in the cloudexponential growth for companies like Apple, Google, Facebookcorrelated to simplicity – drives stickinessneed them to be successfulnew Platinum 5-1 support & value engineeringin 2012 – less than 10%today over 90% (check #)90M recurring rev stream in one yearfantastic, but shouldn’t all our customers have this support?Whether paid for or not, all customers should expectOne unified support contract across SAP in 2014DC – China, India, AusGlobal appsBut local dataAbout security and trustWhat it means is we need to increase our focus on end-to-end solutions that provide industry specific value and guarantee business outcomesTransition – strategy refresh led us to organize for customer success (org and playbook one slide)It’s a lifecycle. Value must be reinforced x-termMarketing to LoB and Outcomes and ValueCustomer voice most valuable – hosted communityValue expressed when not in roomUsage data – 33M subs tell us like & dontContent strategyBenchmark KPIs, predictive analyticsCustomer sat = usage and consumption of innovationSales – Land & ExpandEasiest to do biz withTransparent pricing: Pay as go v commitDo this right = predictable biz for a decadeTransition: Lets double click on our strategy with HCM
  • Outcomes expressed by LoB differentRepeatable, reusableHorizontal & verticalValue is clearMarriott – SFSF - Improve overall engagementJam for contract labor & engagement with LMS initiativesNespresso – 360 view – spend & vendor relAll relevant data to monitize & service more efficientlyT-Mobile – 2 stories – One is innovationand other is agilityThey are using the cloud to innovate – Ariba, ops efficiency to manage their supplier relationships Shorten their procure to pay cycles 75-80% time savings v manual invoicingAcross 10k suppliersAv productivity per FTE incr 3xThese are just a few… clearly simple & repeatable. You heard this from Rob as well.TRANSITION: RETAIL. Our customers are also defining their own OUTCOMES in APJAnd there are examples of this with the biggerst brands all over the worldRole of CIO:But let’s bring this closer to home. And nothing is closer to home at SAP than the CIO. Because their world is not only changing rapidly, but this very change strikes at the core of SAP’s historic selling motion. Yes, I said historic - because the fundamental shifts in the role of the CIO and their relationship with the Lines of Business are changing how you need to sell.  The great news is that it’s irrefutable that as a company we are connected to the CIO unlike no other. We live and breathe the CIO and have gained their trust over 40 years of delivering business process innovation,.  But the CIO role is under enormous strain and transition: Historically the CIO was a bastion of rule and governance, focused on exclusively on data, control, access and protecting users.  But with easy to adopt SaaS offerings seducing the LOB’s, the CIO has seen a rapid shift of IT spend that is now controlled by the LOB’s with no CIO input whatsoever.  The modern CIO understands that their role is now to make the business more successful and find ways to help them differentiate and consume massive amounts of innovation to drive business outcomes. To do this, they need to learn to speak a different language – the language of the Lines of Business.  The NEW face of IT is LoB execs. The partnering of the CIO and LoB to resolve this tensions is where SAP can not only add value, but where we are uniquely positioned and offer an un-fair advantage: We have the DNA in both the CIO and the LoB Look: The CIO is increasingly losing control of their IT budgets to the LOB, and the decision-making is increasingly fragmented in our customer’s organizations. Additionally, budgets in IT globally are flat or in decline, while LoB tech spend is increasing at an annual rate of 20% And this spend is in addition to the portion of the pie that we have traditionally gone after. If we don’t address, we are simply leaving money on the table - lots of money And those CIOs who don’t make transition as we described – well, their tenure is getting shorter and shorter – under 4 years now.  The ones who do see a new role – chief problem solver, chief creative officer, chief innovator – with a strong financial background to support outcomes and value realized are the ones who will survive and thrive. But don’t take it from me: Forrester shows that:70% of CIOs don’t speak regularly to LoB. And while 80% are comfortable working with finance, only 30% are comfortable working with Sales & Marketingin Europe 57% of 400 CIOs only collaborated comfortably with marketing…but when asked, almost 60% say they wish they did in order to be more successful in their role Now: Who better than SAP can help bridge these relationships and make each more successful while opening additional business for us? This opportunity is OURS. Let’s empower these CIOs to address these changes, reinvigorate the LoB conversation and become that modern CIO that will thrive. Let’s make the look good, and grab significant incremental business while doing so.  
  • You’ve probably heard a lot about the TCO benefits of the Cloud. And while the Cloud certainly offers a cost advantage, the real benefit the Cloud brings to business comes in two flavors: innovation and agility.  That’s exactly why companies are turning to the Cloud.With rapid innovation cycles, the Cloud delivers new functionality several times per year, enabling you to request and get new enhancements to advance your business.Releases are immediately available to every customer – with no lengthy upgrade cycles, no consultants, and no long training or change management projects required. INNOVATION WITHOUT DISRUPTION!And with agile Cloud Platforms, you can quickly develop industry-, process-, or company-specific extensions to any SAP applications to achieve new, innovative business processes that advance your business. In short – Cloud is no longer either/or…it’s not even AND…it’s AND BETTER!!! By extending your OP assets with the Cloud, you can enable new business processes, gain new insights, and unlock new value for your business.IDC: “Initial phase of cloud adoption was driven by IT cost and efficiency savings. Primary adoption of cloud will shift from economics (TCO) to innovations….Leading companies will use the Cloud to develop new competitive business [processes/services]”
  • Let’s examine just a few ways about how SAP is helping businesses achieve this AND BETTER performance by extending their on-premise assets with the Cloud – to enable new processes and insights that were previously impossible. Think of the possible:What if you could mine social media activity and mentions for customers who are showinga “propensity to buy or invest” and a high “readiness to buy.” Companies in multiple industries are doing this with SAP Cloud for Sales and Social Intelligence today, including one major high-tech firm is doing this today, driving billions more in sales by being the first to the customer with the right offer when they’re ready to buy.What if you could ensure, audit, and report that all your employees are fully trained and in compliance with the myriad of regulations you must comply with today…and have the agility to quickly implement new regulations as they crop up – as they inevitably will. That’s what leading financial services companies, like RBC, are doing today with SAP and SuccessFactors.What if you could extend your existing purchasing systems with a global network of connected buyers and sellers and get advanced alerts of potential supply risks or know well in advance that a supplier you rely on may be showing signs of stress. What if you could not only get alerted to this risks; but get recommended actions or be presented with qualified suppliers based on the buying activities and ratings from other buyers on the Network. Well, that’s what companies like SunTrust and DollarTree are doing today.What if you could improve liquidity and increase your return on capital by double digits by having clearer insight into your payables status and being able to secure discounts on the fly from the thousands of suppliers you do business with every day. That’s what companies like Caterpillar, Disney, and Deutche Bank are doing today. Or what if you could use this same network to offer new financing services to buyers and suppliers at much lower risk because you have detailed remittance information along with payment and credit histories of the parties you are lending to. If the packaged cloud services I just described are not enough…what if you could use an agile Cloud Platform to create your own process extensions and entirely new applications to meet the unique needs of your industry or provide competitive advantage for your company. Dozens of companies are already doing that today with SAP.
  • EC – need to own the employee record – holy grail in HCMEC is in triple digits around the worldFrom 30 to ~300 customers in 1-yrAvailable in 58 countries; supported in 23 with cloud payrollSeamlessly integrated to ecosystem, SAP family, talent suiteTRANSITION:Developed a playbook & engagement model from that
  • SAP Jam enables you to turbo-charge all of your business processes by making them social to help you streamline work, decrease sales cycles, drive revenue more quickly, reduce risk, or drive better customer satisfaction. SAP Jam supports both companywide processes such as social onboarding, social learning, communications and knowledge sharing, etc. as well as departmental and cross-departmental processes like social opportunity management, collaborative budgeting and forecasting, collaborative trouble ticket resolution, etc. ONLY SAP Jam can support processes that span functional areas and applications because it is delivered as a secure social foundation that avoids the proliferation of social silos across the company. SAP Jam also aggregates everything a business person needs into a single place, right where they are working, instead of requiring them to log into separate applications to get updates or collaborate.
  • 60 customers, acquiring 2+ a month – Pricing based on # of expense reports / volume. Averegae deal value ACV: $125-250K. Over 50% customers fall in this suite spot. Deuthe Post DHL – 5 yr $2m deal. Use slide 10 and 33:All the different things that could go into the lifecycle of a biz trip…much more than just booking and reimbustingSpeaker Pointers from Neil:(of travel is not a high priority for our IT startegy..”Does anybody realize where travel ranks as part of a controllable expense on an Income statement? (2)Independenteresearchsays that Travel is only second to Payroll as an expense. You have a fiduciary dutu to your stakeholdwers to evelauate this Then use slide 5: Save 300% on expense reports. This is tangible, low hanging fruit.And it’s an easy biz case, ow risk investment – no need to go to board. EasyAnalyzing Processing Costs Based on survey results, the average cost to process an expense report varies depending on the level of automation that a company has implemented. According to 2012 survey results, on average a company spends approximately $21.41 to process an expense report if their process is entirely manual. This was more than twice the processing costs accrued by companies that are fully automated. Organizations that have some automation in place have been successful at driving down the processing costs to $15.06 per transaction, but companies that are fully automated and using an integrated system have dropped their per transaction cost to only $8.50. Companies that are shying away from T&E automation because they think their current processes work or that there will not be a ROI simply need to do the math on the cost to process an expense report. When you multiply this transaction cost across an entire organization for one year, the cost becomes astronomical. So what is automating your travel and management processes - - go to lifecycle slide. Competitpors / Positioning:Concur is only major compatitor – PORT of San Diego video….Integration: Significant # of our customers who were Concur replacements. Major reason they choose us is not feature and function…key is that if they are SAP customers there are OOTB integrations to ERP. Compliance: We have 21 OOTB country versions. Concur (Slide 20). We are taking same approach to all our solutions. Portfolio to help you achieve cost and agility. Benefit to Ariba and SFSF customers because we have an entire cloud portfolio for all LoB’s – how works with rest of the ecosystem. Concur only does travel. Concur customer base 50% SMB, but moving upstream. Cathcing up in terms of market space.Relay message that the product has been in market for 2 years, out before Ariba acquisition. Delivered with Integration to ERP and ByD and on Prem HR…T&E is in Ariba sales bag. How many SAP products launched 2 years ago and have 60 customers – standalone deals. Ariba sales force of 1,200 uses it nowAPPS – based on role, Expense reporting, apps for managers doing approvals – anthing u can do in solution u can mobile.Being moved to Hana, already uses HANA for analytics.
  • Sun Communities, Video, he talks about leveraging Jam over mobile with HCM suite to collaborate, including sharing of “on the job video” of team members performing job functions so others can leverage them to learn how to make repairs in the field, etc.http://www.successfactors.com/en_us/download.html?a=/content/dam/successfactors/en_us/videos/customer-success/sun-communities-cs.mp4
  • So What is SAP’s Cloud strategy? How do we differentiate in the market?AtSAP, Our Cloud Strategy is simple. Boils down to four key pillars:We are the Cloud built for business. SAP is the Cloud built for business. We believe the Cloud is the future of SAP and the future of business software. However, we feel strongly that folks have been thinking about the Cloud all wrong. The Cloud is no longer about IT efficiencies or TCO. Sure, there are cost benefits to the Cloud. But the real value the Cloud brings to business comes in two flavors: innovation and agility.Our market-leading solutions deliver the innovation and agilitycompanies need to extend existing infrastructures to enable new processes and insights and quickly adapt to keep pace in today’s fast-changing world. With more than 35 million users, flexible delivery options, an advanced cloud platform, and applications that power all lines of business and industries, our cloud portfolio is the most used andcomprehensiveon the market.Unlike some of our competitors. We don’t believe that the Cloud is an either-or proposition. We don’t believe it’s even an and proposition. We believe it’s an AND BETTER one. By extending your existing assets with the Cloud you can and should be able to enable new processes, gain new insights, and unlock new value for the enterprise. And SAP’s Cloud strategy is designed to innovate and drive that “…and better” proposition for our customers. We’ve assembled the best-of-breed solutions in key functional areas, like HR and Procurement and developed innovative new solutions in social selling and service. Sales/Marketing/Service and Finance.We’ve also been pioneers and leaders in new innovative areas, such as business collaboration with Jam, and business-to-business collaboration with the Ariba Business Network. We are bringing these solutions together to drive entirely new processes and insights for our customers – like marrying SFSF with Jam so that Marriott could not only enhance learning, knowledge sharing, and project management within the enterprise; but also enable a whole new engagement, on-boarding, and training model with their growing contingent workforce..No one better than SAP to deliver business innovation and agility. 35M users of SAP Cloud solutions – the Industry’s largest base of Cloud users– more than from any other vendor on the planet.Most comprehensive Cloud portfolio – covering all lines of business Over 12M users on SAP Jam – the world’s leading social business platform - that’s more than Chatter, Yammer, etc.The world’s largest business network - 1M+ connected companies transacting over $465 billion in commerce annually on AribaThe largest business Cloud implementations in the World -- some with more than 2 million users in a single instanceMarket-Leading Public & Private Cloud options – the market’s leading public Cloud application portfolio (#1 in HCM, #1 in Procurement, #1 in Business Networks, #1 in Social Business Collaboration) and the most-trusted private cloud environment2,100+, >440,000 end users on HANA Billion Dollar Annual Run Rate in Cloud Business – demonstrates SAP’s commitment, growth and focus on the cloud  At the core of our strategy are our Cloud business applications – we offer the #1 Cloud apps in HCM and procurement. We run the #1 social business platform and business network. We deliver advanced social analytics and sales force and service automation; Cloud based financials and Travel & Expense; as well as the leading Cloud ERP suite. As noted earlier, more business professionals use these applications than they do apps from any other Cloud vendor.  And we take a progressive and collaborativeapproach to delivering all of this. We connect people to people with Jam, so the millennial workforce can collaborate in the context of work and life.  We connect businesses to businesses through the Ariba Network, so they can streamline commerce, save on everything theybuy, and discover new business. We also provideNetwork extensions like the Financial Services Network, which harnesses the rich remittance information and connecting of the Ariba Network to offer automated B2B payment services to big corporate clients.2. The second pillar of our strategy is to deliver transformational Integration: SAP has always been a leader in delivering deep and seamless process integration…and this is a guiding principle for the Cloud. We support integration through three primary methods – open APIs, hundreds of pre-defined and packaged business process integration adapters called iFlows, and the HANA Cloud Platform. These are pre-packed, proven adapters that are already in use by thousands of SAP Cloud customersacross three predominant integration scenarios: On-Premise to Cloud (such as SAP ECC-MM to the Ariba Network); Cloud-to-Cloud (such as SFSF to Jam – Marriott); and Cloud to 3rd-party (such as SAP Cloud for Sales to NetBase or SFSF to Kronos for time and attendance).The third pillar of our Cloud Strategy is3)Flexibility: We firmly believe that the transition to Cloud is a journey – it’s not one size fits all. So we offer flexible delivery options so that customers can leverage our best-of-breed public cloud apps; move their existing SAP-licensed apps to the HANA Enterprise Cloud that is fully managed by SAP and has the added performance and scalability benefits of running on HANA; or managed service options, where we can extend companies’ existing on-premise SAP investments with the Cloud to enable new business processes or new insights for their business. And finally…4) Unified Cloud Platform: Were doing this on a single platform. The foundation to all our offerings. Wwe are moving it all (public and private cloud platform) We are accelerating our plans to move the entire SAP Cloud portfolio to the HANA Cloud Platform. This will offer three key and differentiable benefits: With all apps running on the market-leading technology for real-time computing, customers can handle more data, process more transactions, and derive more actionable insight from SAP Cloud apps faster and easier than ever before.With all SAP Cloud apps running on a common platform, the need for integration is virtually eliminated. All the applications will share the same data model with the same UI, look and feel. So integration becomes activation – allowing companies to start with say HR in the Cloud and then add Procurement with all theirprofiles, rules, and integrations ready to go.Because the HANA Cloud Platform is also a development platform, customers and partners can create process extensions to existing SAP Cloud apps or quickly develop entirely new apps that meet the unique needs of their industry or business.We have been srtable on the stratgeyHelping them get to the LoB – most close to CIOThis is your entry ticket. Public cloud to get to difermetLoB2> portfolioPrivate cloud  
  • Let’s begin by level-setting with a few facts about SAP Cloud. I’m sure you’ll be surprised by some of these facts and figures. I know I was when I first came on board.If you’ve spent anytime listening to SAP’s leadership – Bill, Jim, Vishal, or others – you’ve noticed a marked change in tone. They have all stated that SAP is a leading Cloud company. You may have thought this was just positioning. But it’s not. I’m not naive enough to say we don’t have a lot of work to do towards this goal. And, knowing many of you personally, I know you’re not naïve enough to believe it if I did. That fact is, no matter how you slice it, SAP is already a leader in the Cloud.With more than 35 million subscribers to our Cloud applications, more business professionals use Cloud solutions from SAP than from any other vendor on the planet. And while other providers may do well in a niche area, SAP offers the Most comprehensive Cloud portfolio – covering all lines of business – from Customer to Supplier…and everything in between. We’ve also looked beyond just delivering traditional applications in a Cloud model and are driving new innovative models for collaboration both within the enterprise and between companies. We already offer the leading social business platform (12M+ users) – that’s more than Chatter, Yammer, etc. We believe the next battleground will be about extending beyond the four walls of the enterprise to enable new levels of business-to-business productivity. And SAP again is driving this with the Ariba Network, theWorld’s largest and most global business network – 1.4 million connected companies from 190 countries collaborating on ½ trillion dollars worth of commerce annually. That’s 3X-50X the size of any other business network.      We also support some of the largest business Cloud implementations in the World -- some with more than 2 million users. And we also provide flexible delivery models – including private and hybrid options, capabilities not offered by many of the niche providers…and options that are welcomed by the over 250,000 companies in SAP’s installed base.And, for those of you that listened to the Earnings call last week, you know that SAP Cloud revenues now exceed an annual run rate of €1B – that’s ~$1.4 billion US for those of you keeping score at home. That makes us the largest Cloud provider at-scale by revenue. It’s also one of the fastest-growing areas of the business – with 130% YoY growth in Cloud subscription revenues as of Q4 2013.
  • Business spending on Cloud is growing at more than 5X the pace of the overall IT market. In fact, in the next 3 years, businesses will invest more in Cloud solutions than in any other area of IT. They are making decisions, re-platforming, locking in their IT infrastructure for years to come. And the battle today not just for the future of the Cloud…but the future of the entire IT industry I firmly believe that this market will be won in next 24 months. Why?Market here and shifting75% of all IT purchases cloud LoB 2016•   The market for public cloud services will top $107 billion by 2017•   And 60% of that $107 billion onSaaSThe wholeworldmovingtocloud60% ofgrowth will comefromSaaSReallywhatcloudisaboutisnewengagementmodels, employees, customerandsupplierMariott T-Mobile, Dbank, It’s important to point out that SAP Cloud has been built in conjunction with our customers. We have developed our solutions and differentiation based on customer demands.In fact, we think being SAP – with our experience, reach, and strength – is one of our greatest assets.No other Cloud provide offers the 40+ years of extensive experience SAP providing solutions to businesses in 25 industries and over 160 countries around the globe. We are using this experience to deliver the same level of enterprise class performance, scalability, and security in the Cloud. In fact, we ascribe to all global industry security stands – from ISO to SAS-70 to WebTrust and PCI compliance – and provide a level of data security and focusthat most companies can’t provide on their own.We also have been building toward a next-generation UX – with our Cloud apps being built for mobile first. If you haven’t seen our Cloud HCM, collaboration, or the entirely new social selling and social care experience we’re now delivering through SAP Cloud for Sales….you should. I think you’ll be pleasantly surprised. In fact, for those that are interested, we can and should probably set up an entirely separate session to demonstrate these to you.I will discuss our integration approach in a moment, but Ingrid, why don’t you give us some details on how we really are using our Cloud strategy to simplify the IT structure for businesses. Unlike competitors that support only public cloud or private cloud. Or those that are using in-memory as a façade; but still require a whole host of extraction tools and database infrastructure on the backend….SAP is converging it all into one, unified, and harmonious portfolio. SAP One platfiorm to manage the whole customer experience

Transcript

  • 1. SAP: The Cloud Built for Business ARIBA LIVE Rob Glickman | VP Cloud Marketing | SAP
  • 2. Unprecedented Pace of Change 5B middle class growing to 5 billion will strain resources 15B web-enabled devices are creating an intelligent, connected universe © 2013 SAP AG or an SAP affiliate company. All rights reserved. Millennials 1B people in social network will rewire business and personal boundaries will transform customer demands and the workplace New + Disruptive business models will accelerate change and innovation Data Doubling every 18 months create opportunities and risks for value creation 75% New enterprise IT spend will be cloud-based or hybrid by 2016 2
  • 3. Since the year 2000, 52% of Fortune 500 is gone 75% of all IT purchases cloud LoB 2016 The market for public cloud services will top $107 billion by 2017 5B middle class growing to 5 billion will strain resources …And 60% of that $107 billion on SaaS 1B Millennials will transform 10-fold explosion of new cloud (SaaS) "apps” in next four years. Driven by a tripling of "developers"/contributors. customer demands and people in social network 7 million new cloud will rewire business and personal Over the next seven boundaries the workplace New + years, emerging markets cloud spending will Disruptive grow 7x, vs. 3x in developed markets. jobs by 2015 business models 15B web-enabled devices are creating an intelligent, connected universe © 2013 SAP AG or an SAP affiliate company. All rights reserved. Growth engines comingwill accelerate change from emerging markets like Brazil, China, India who have social running through their veins and innovation Data Doubling 75% Changing the way consumers interact, and their demands are changing the way companies deliver services and the operating models that support them. every 18 months create opportunities and risks for value creation New enterprise IT spend will be cloud-based or hybrid by 2016 The line between consumer and enterprise blurs more everyday… 3
  • 4. MORE BUSINESSES TAPPING INTO THE CLOUD… 75%+ New IT expenditures will be for Cloud or hybrid systems by 2016 70%+ CIOs will embrace a “cloud first” strategy by 2016 80% Of new IT decisions will involve LoB execs; 53% of IT decisions will be led by LoB execs Sources: Saugatuck, IDC
  • 5. …Is Creating Pressures Across All Functions and Industries… Increased pressure on decision makers across the enterprise Sales & Marketing Procurement & Operations Time to market Cost & Complexity • On-boarding new customers • Lack of visibility into customer base • New non-traditional competitors • Erosion of margins • High levels of IT spend; complex system landscapes • Pressure on internal costs to serve and operate Service Finance Demanding Clients Risk & Regulation • High collaboration and social requirements • Pressure for greater returns on cash and investments • Capital holding requirements • Regulatory rules & auditing requirements • Increasing liquidity and cash return requirements HR Changing Workforce © IT Changing Workforce • Aging workforce experienced but out of touch with new tech requirements • Tech-savvy Millennials work differently • Increased use of contingent workers 2013 SAP AG. All rights reserved. • Complex systems landscapes • New technology adoption, management • Integration and cost efficiency challenges 5
  • 6. Customer-Centricity Is a Key Part of Our Cloud DNA We achieve a deeper level of customer intimacy with more coordinated engagement throughout the customer lifecycle Direct engagement with business executive audiences Usage data and community feedback – frequent innovation in rapid release cycles Focus on usage, successful references, renewals Land and expand approach Frequent user and app upsells Focus on customer satisfaction, adoption, and time to implement CUSTOMER High trust in daily transaction volumes, secure data Seamless innovation releases Source: Bain & Co. 2013 and SAP analysis © 2013 SAP AG or an SAP affiliate company. All rights reserved. 6
  • 7. Customers Seek Outcomes Not Products Influence buying behavior Deliver a 360 view of the customer Improve overall engagement Grow lifetime value Increase operational efficiency Enable employees to develop themselves Align people with goals and objectives Increase customer satisfaction Reduce COGS Accelerate time to productivity Deliver 360° view of spend and vendor relationships Discover new business opportunities © 2013 SAP AG or an SAP affiliate company. All rights reserved. 77
  • 8. T-Mobile clip: https://www.sap.com/asset/detail.t-mobile-ctv-customercloud-for-social-mp4.html © 2013 SAP AG or an SAP affiliate company. All rights reserved.
  • 9. Cloud delivers the agility and innovation your business needs Faster deployment • • Full deployment in weeks Mobile grade user experience = less training More frequent innovation updates • • Multiple innovation releases per year Customer feedback a cornerstone of updates Agile deployment, configur ation and integration • • • • © 2013 SAP AG or an SAP affiliate company. All rights reserved. Rapid process configuration Faster adoption No lengthy upgrade cycles Packaged integration Lower CapEx & faster Time to Value • • • Lower initial solution and deployment fees No maintenance or upgrade costs Prepackaged integrations 9
  • 10. Cloud: Enabling New Business Processes and Insights Mine social media activity for instant insights to turn customer interest into sales Empower your workforce with improved training and regulatory compliance © 2013 SAP AG or an SAP affiliate company. All rights reserved. Improve liquidity and reduce risk with more dynamic and flexible finance and payments Extend your purchasing systems with a global network of connected buyers and sellers Create your own process extensions and new applications with an agile cloud platform 10
  • 11. Employee Central – Core HR in the Cloud © 2013 SAP AG or an SAP affiliate company. All rights reserved. Employee Central 11
  • 12. SAP Jam: Social collaboration across your entire network Supporting company-wide or cross-departmental social processes Operations Finance Service Shipment updates Pricing exceptions HR Engage every employee R&D Catch customer satisfaction problems early Collaborate with experts anywhere Marketing PR Improve campaign planning Quickly determine best response Specialist Sales IT Improve deal teams and strategy Drive projects and issue resolution Any Employee © 2013 SAP AG or an SAP affiliate company. All rights reserved. 12
  • 13. SAP Cloud for Travel and Expense A People-Centric End-to-End Solution Service – Partner Budgeting for managers Travel Plan / Itinerary Management Plan the trip Credit Cards Reimbursement Trip approval Mobile GPS / Maps Approval Book the trip Travel Email Audit © 2013 SAP AG or an SAP affiliate company. All rights reserved. Operational Data Analytics On Trip Expense Report BW Integration e-Receipts / OCR 13
  • 14. Sun Communities Employees: 1,650 | Industry: Services | Solution: Employee Central, Learning, Performance & Goals, Recruiting, SAP Jam, Succession EXECUTION GAP SOLUTION RESULTS • Implemented SuccessFactors Employee Central, Performance & Goals, Succession & Development, Recruiting, Learning and SAP Jam • HR was spending its time on data management rather than talent management “ • Allowed employees to stay productive on the go through a mobile app • Eliminated the burden of maintaining and integrating HR systems • Niche HR systems required too much work to integrate and couldn’t scale to the company’s growth • Made the employee experience seamless from recruitment through career development • Received quarterly product updates automatically, without extra effort • Recruiting and onboarding revolved around paper job applications and manual data entry • Increased social collaboration across the workforce • Helped HR identify and develop highpotential talent Employee Central is by far our most flexible HR tool. Whether we’re effective-dating changes, manipulating that data and moving it into a payroll system, or doing complex calculations, it’s the number-one resource for our team. ” Marc Farrugia, Director of Human Resources © 2013 SAP AG or an SAP affiliate company. All rights reserved. 14
  • 15. Kawasaki Motors Employees: 500 | Industry: Manufacturing | Solution: Compensation, iContent, Learning, Performance & Goals, Succession EXECUTION GAP SOLUTION • Company had no reliable way to RESULTS • Success Factors’ Performance & establish and communicate goals – rating scales, completion rates, and results differed greatly from one department to the next Goals, Compensation, Succession & Development and Learning • Transform performance reviews into an electronic process • No accurate measurement of talent management activities. “ performance review, goal setting, and compensation planning processes • Easily identify areas for organizational improvement • Consistency and discipline in all our employees’ performance to determine career development needs • Monitoring progress at all stages of the • Freed up the equivalent of two full-time employees by moving the performance review process online When our president calls with a question about an employee s performance reviews or competencies, I don’t have to call him back with the answer. SuccessFactors serves up the information I need within seconds. © 2013 SAP AG or an SAP affiliate company. All rights reserved. ” Tom Porter, Director Human Resources & Administration 15
  • 16. UST Global: Saving millions on travel expense with the SAP Cloud for Travel and Expense solution © 2013 SAP AG or an SAP affiliate company. All rights reserved. 16
  • 17. SAP Cloud Strategy Best-of-Breed Cloud Suite • • • • All Lines of Business • On-Premise-to-Cloud #1 in HCM, Procurement, Business Networks, Social • Cloud-to-Cloud Collaboration • Third-Party-to-Cloud Advanced Cloud Social Sales, Marketing, and Service End-to-end Cloud ERP Suites (ByD and BusinessOne) Delivered by SAP, a Trusted, Experience d Business Partner Flexible, Secure Deployment • • • • Transformational Integration Public, Private and Managed Service Offerings International security standards - SAS-70 Type II, ISO 27001, SSAE, PCI, and more. Physical security Global datacenters © 2013 SAP AG or an SAP affiliate company. All rights reserved. Unified Cloud Platform SAP HANA Cloud platform will serve as the foundation for the full portfolio of Cloud solutions from SAP 17
  • 18. SAP Accelerating in the Cloud While others have been talking about the cloud, SAP has quietly transformed itself into a force to be reckoned with: 35M 30+ 12M 1.4M 2M+ Largest business Cloud deployments Industry’s largest base of Cloud users Industry’s most comprehensive Cloud portfolio The leading social business platform The largest and most global business network More business professionals use Cloud solutions from SAP than from any other vendor on the planet. Market-leading public apps (#1 in HCM, Procurement, B usiness Networks and Social Collaboration) covering all lines of business More users than Chatter, Yammer, etc. Over 1.4 million connected companies in 190 countries transacting over half a trillion in commerce annually - the size of any other business network… © 2013 SAP AG or an SAP affiliate company. All rights reserved. Some with more than 2 million users. Public, private and managed service offerings €1B+ Annualized run rate in Cloud business SAP is now the largest cloud provider at-scale with over 130% YoY subscription revenue growth 18
  • 19. SAP Cloud Strategy on one slide 75% of all IT spend = Cloud or hybrid by 2016 TCO 75% Innovation & Agility Battle for Cloud will be won within 3 years 60% Cloud spending = Saas 2017 NEW ENGAGEMENT MODELS Social Network HR Proc Suite HANA LOB Apps = 80% IT Purchases Growing ≥ 2x Overall Market Cloud AppsCust Mktg HR Fin Fin Managed Managed Cloud Services Services Bush, Networks HANA Cloud Platform © 2013 SAP AG or an SAP affiliate company. All rights reserved. 19
  • 20. Welcome to the cloud built for business © 2013 SAP AG or an SAP affiliate company. All rights reserved. 20