The Future of ERP by Bertrand Andries

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Keynote presentation by Bertrand Andries, Member of the Board of Agoria ICT and Managing Director at SAP BeLux
CONFENIS 2012 (19/09/2012)

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The Future of ERP by Bertrand Andries

  1. 1. The future of ERP and the consequences for the industryBertrand Andries CONFENIS 2012September 2012
  2. 2. Our customers fly more than 1.1 billion of the world’s passengers yearly.
  3. 3. Our customers produce more than 72% of the world’s beer.
  4. 4. Our customers produce more than 70% of the world’s chocolate.© 2011 SAP AG. All rights reserved. Public 4
  5. 5. Our customers produce more than 86% of the world’s athletic footwear.© 2011 SAP AG. All rights reserved. Public 5
  6. 6. From Operational Efficiency to Competitive Differentiation Competitive Differentiation Operational Efficiency Business Process Business Network Reengineering Transformation + + ERP Enterprise SOA 1990s 2000s 2010s© 2011 SAP AG. All rights reserved. Public 6
  7. 7. The Core: SAP Business SuiteFor Every Business and Every Process SCM Supply Chain Management SAP ERP SRM CRM Financials, Human Resources, Supplier Customer Relationship Logistic Execution, Relationship Management Sales, Manufacturing, Management Purchasing, Corporate Services PLM Product Lifecycle Management Technology Platform Portal – Integration – Master Data Management - Reporting Service Oriented Enablement (SOA)
  8. 8. How to get to a Sustainable Cost Structure ?© 2011 SAP AG. All rights reserved. Public 8
  9. 9. We’re living ina world of change. Home Imagine Purpose Innovations Solutions Ecosystem People Results Join Us
  10. 10. Global middle Business class growing and personal from 2B to 5B lives have by 2030 been blurred 15 Billion More data in connected last 5 years than devices entire history of by 2013 mankind1 Billion people More mobile engaged in devicessocial networks than people Unprecedented empowerment of people A world of change Imagine a better run world Home Imagine Purpose Innovations Solutions Ecosystem People Results Join Us
  11. 11. 2012 STRATEGYFIVE MARKETS TECHNOLOGY APPLICATIONS ANALYTICS MOBILE CLOUD & DATABASE In Memory (HANA) SERVICES
  12. 12. Fact:More data has been created in the last five yearsthan in the entire history of mankind.Implication:Unlocking the secrets inside this data presentsbreakthrough opportunities for businesses A world of change Imagine a better run world Home Imagine Purpose Innovations Solutions Ecosystem People Results Join Us
  13. 13. What is Big Data?Volume, Variety and Velocity Source: TDWI Big Data Survey© 2011 SAP AG. All rights reserved. Public 13
  14. 14. Need a breakthrough technologyTodays technology requires tradeoff Deep Deep Complex & interactive questions Complex & interactive questions on granular data on granular data OR Broad High Speed Broad High Speed Big data, Fast Big data, Fast many response-time, many response-time,data types interactivity data types interactivity Real-time Simple Real-time Simple Recent data, preferably No data preparation, Recent data, preferably No data preparation, real-time no pre-aggregates, real-time no pre-aggregates, no tuning no tuning© 2011 SAP AG. All rights reserved. Public 14
  15. 15. SAP HANA is the only solution that does it allDelivering across 5 dimensions of modern decision-processing Deep Complex & interactive questions on granular data Broad High Speed Big data, many Fast response- data types time, interactivity Real-time Simple Recent data, preferably No data preparation, no real-time pre-aggregates, no tuning© 2011 SAP AG. All rights reserved. Public 15
  16. 16. In-Memory Computing Technology that allows the processing of massive quantities of real time data in the main memory of the server to provide immediate results from analyses and transactions© 2011 SAP AG. All rights reserved. Public 16
  17. 17. (Re-) Unification of Transactional Processing and Analytics https://openhpi.de/ © 2011 SAP AG. All rights reserved. Public 17
  18. 18. In-Memory Computing – The Time is NOWOrchestrating Technology Innovations The elements of In-Memory computing are not new. However, dramatically improved hardware economics and technology innovations in software has now made it possible for SAP to deliver on its vision of the Real-Time Enterprise with In-Memory business applications HW Technology Innovations SAP SW Technology Innovations Multi-Core Architecture (8 x Row and Column Store 8core CPU per blade) Massive parallel scaling with many blades Compression Partitioning 64bit address space – 2TB in current servers No Aggregate Tables 100GB/s data throughput Dramatic decline in price/performance Real-Time Data Capture Insert Only on Delta© 2011 SAP AG. All rights reserved. Public 18
  19. 19. How? Multi-Core CPUs Computational Power Large Memory Footprint 1m Faster Access than Disk Row and Column Store Column = Fast Queries 5 – 20x Compression 1 TB Data = 100GB Memory Partitioning Analyze Large Data Sets In-Database Computing Complex Computations No Aggregate Tables Flexible Modeling No Data Duplication Real-Time Replication Fast Data Loads Insert Only on Delta© 2011 SAP AG. All rights reserved. Public 19
  20. 20. SAP HANAIdeal platform for real-time business Real-time Analytics Operational Data Warehousing Predictive & Text Analytics Reporting on Big Data Real-time Applications Core Business Planning and Sensing and Acceleration Optimization Response Real-time Platform Database Mobile Cloud© 2011 SAP AG. All rights reserved. Public 20
  21. 21. SAP HANAIdeal platform for real-time business Real-time Analytics Real-time Applications Real-time Platform© 2011 SAP AG. All rights reserved. Public 21
  22. 22. In-Memory database … continued… and pre-configure as a simple appliance Calculation Engine Query Results Query/ETL Query Aggregates Indexes SAP HANA Data Warehouse ETL Operational Data Store Copy Data© 2011 SAP AG. All rights reserved. Public 22
  23. 23. SAP In-Memory StrategyProduct Strategy and Plan “Transformation” “Innovation“ Longer-Term (Plan) Mid-Term (Plan) “Renovation” SAP HANA 1.0 Ramp-Up since Dec 2010 In-Memory Next-gen One Store for Data Analytics Applications and AnalyticsCapabilities ■ SAP HANA real-time ■ SAP BW fully running on SAP ■ SAP HANA only persistence layer for operational analytics HANA SAP Business Suite ■ Complete BI Suite with BI 4 runs ■ SAP HANA platform for in-memory ■ SAP Business Suite optimized for on SAP HANA apps in-memory computing ■ SAP Business Suite runs on SAP HANA ■ Further optimization of BI 4 Suite for SAP HANA ■ Industry and LOB Analytic Apps ■ Flexible real time analysis of ■ Real-Time operational ■ Reduced landscape Benefits operations at non-aggregated planning and simulation complexity level capabilities: link to execution ■ Value chain transformation ■ Primary persistence and optimized for SAP BW © 2011 SAP AG. All rights reserved. Public 23
  24. 24. SAP HANA Transforms both Businesses and IT Reduce waste & fraud in government fund Sharpen marketing effectiveness <2 min for detecting 100,000 names over 56x faster reporting: micro-targeted 90M records customer offers Identify cancer DNA variants for treatment Accelerate monthly close & spending insight 216x faster results: 3 days  20 minutes 75% reduction in CRM query ~23 to 6 seconds Improve diagnostic through pattern detection Launch new products or markets 300M records; analysis in 2-10 seconds 400x faster report execution: Predict sales-trends in real-time Predict customer purchase sentiment Seasonality Analysis in 5 seconds Remote roadside diagnostics in real-time Analyze 15 years 1 TB data Improve labor utilization in seconds 1131x faster reporting time Deeper customer relationships “Perfect order” experience 360 customer view and comprehensive 60x faster real-time insights experience© 2011 SAP AG. All rights reserved. Public 24
  25. 25. There Are More Mobile Phones Than Toothbrushes (5B vs 2.2B) © 2011 SAP AG. All rights reserved. Public 25© 2011 SAP AG. All rights reserved. / Page 25
  26. 26. Fact:There are now more mobile devices onEarth than there are peopleImplication:A business can now exponentially expandits reach in a flash A world of change Imagine a better run world Home Imagine Purpose Innovations Solutions Ecosystem People Results Join Us
  27. 27. First 8 Quarters Cumulative Unit Shipments, iPod / iPhone / iPad iPad iPhone iPod © 2012 SAP AG. All rights reserved. 27© 2011 SAP AG. All rights reserved. Public 27
  28. 28. First 13 Quarters Cumulative Global Android & iPhone Shipments Android iPhone © 2012 SAP AG. All rights reserved. 28© 2011 SAP AG. All rights reserved. Public 28
  29. 29. Growth of Number of Devices vs. Number of People on Earth © 2012 SAP AG. All rights reserved. 29© 2011 SAP AG. All rights reserved. Public 29
  30. 30. India Internet Traffic by type, Desktop vs. Mobile, 2008 – 2012 Desktop Internet Mobile Internet © 2012 SAP AG. All rights reserved. 30© 2011 SAP AG. All rights reserved. Public 30
  31. 31. Gartner predicts … “By 2013, a typical Fortune 1000 corporation delivering B2E and B2C applications will use at least 6 different combinations of mobile platform, architecture and development tools” “By 2014, 60% of Fortune 1000 corporations will have failed to put a comprehensive mobile strategy in place, leading to considerable overspending” © 2012 SAP AG. All rights reserved. 31© 2011 SAP AG. All rights reserved. Public 31
  32. 32. SAP’s Coverage: SAP Mobility Enterprise Solutions 3 Mobile Services 2 Mobile Applications 1 SAP Mobility Platform© 2011 SAP AG. All rights reserved. Public 32
  33. 33. Why a platform?© 2011 SAP AG. All rights reserved. Public 33
  34. 34. Unwired Platform- Introduction SQL (JDBC) BlackBerry WebService iPhone, iPad, iPod REST Android BAPI (JCo) Windows Odata Windows MobileNetweaver Mobile This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is © 2011 SAP AG. All rights reserved. Public provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement 34
  35. 35. The internet of things REQUIRES © 2012 SAP AG. All rights reserved. 35© 2011 SAP AG. All rights reserved. Public 35
  36. 36. 2012 And Beyond TECHNOLOGYAPPLICATIONS ANALYTICS MOBILE CLOUD & DATABASE HANA SERVICES
  37. 37. ConclusionsCloud, Mobile, in-memory and social networks are changing the IT landscapeHigh public adoption of some of the technologiesBusiness lagging behind in: • Setting out strategies (public, mobile, information management and technology) • identifying value scenariosRequirements for IT education: • Increase number • Combination of mathematics and business acumen • Combination of IT architectural and business strategy understandingCombination of evolutions is powerful but not fully understood • Big data + Cloud + Mobile + Social Networks + transactional excellence = ????Societal, ethical and environmental impact© 2011 SAP AG. All rights reserved. Public 37
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