ASUG Cloud Strategy ~ Bridging the gap between IT and LoB

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In this slide deck, you will learn how SAP is building out a comprehensive portfolio of cloud solutions designed to maximize value while minimizing costs and disruption.
It begins by demystifying the concept of cloud - it explains in business terms the benefits of the various software attributes that collectively are known as cloud computing.

Next, you will explore what SAP is doing in the areas of user experience, collaboration, and mobile devices to make cloud solutions attractive to the Facebook generation. This foundational discussion is then followed by concrete examples of how other customers are benefiting from modern cloud extensions to their on-premise SAP Business Suite.

Key learning points include:
You will learn how easy it is to start leveraging the benefits of cloud computing with one of SAP’s many line-of-business cloud extensions. Based on concrete customer examples, the presenter will demonstrate how other companies have entered the realm of cloud computing by modernizing high value-add processes such as strategic sourcing, talent management, and sales force automation.
You will also hear how SAP can help you take advantage of the cloud while continuing to leverage on-premise investments. SAP enables such high-value hybrid deployments thanks to orchestration scenarios delivered “out of the box”.
How to join and help drive improvements for SAP BusinessObjects Web Intelligence
The webinar starts with an overview of SAP’s cloud portfolio. Next, customer examples are cited to make the topic more tangible. Underpinning all of these discussions will be the business value to you, the customer.
by Sven Denecken, SAP

Watch more SAP Cloud strategy webcasts (http://jive.asug.com/servlet/JiveServlet/previewBody/32575-102-1-44310/N120716%20ASUG%20CloudStratSeries_FINAL.pdf )

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  • 47% OF Workforce in 2014 will beborn after 198081% ofemployeesfeeltheyaren’tsupported in theirrole83% ofemployeesdon’tfeeltheirskillsarebeingusedtotheirfull potential58% ofthesurveyedworkforce will leaveifyoudon’tdevelopthem“By 2016, 75 percent or more of NEW enterprise IT spend will be Cloud-based or Hybrid.”
  • Starting point to set the stageRecent survey data released in the last month, that compliments the direction SAP is taking.Expand, and reference the acquisition of SFSF and Ariba.
  • More great perspective from Saugatuck:Most would agree that the cloud evolution will ultimately reach some larger percentage of cloud pure-play as highlighted in the graph. The flexibility of a “loosely coupled” application strategy, and a strong partnership with a vendor is critical to the success of this cloud journey. In addition - reference the co-innovation methodology, “state of mind” that is now the foundation of our cloud strategy moving forward. No vendor is in a better position than SAP to collaboratively innovate, and manage the evolution of business process requirements. Graph: My company’s preference for deploying new business software (on a continuum from On-premise to Hybrid-Cloud to pure-play Cloud) will be:
  • To rip out the old applications and servers and simply replace them with external cloud services usually does not create a good business case. To obtain business agility, companies would rather keep in-house solutions, streamline and consolidate them as best as possible, and then add new, innovative business processes with cloud services.Agility, speed, mobility…and increased usability requirements make coupling a cloud service back to the core architecture necessary. This helps a company maintain customer and user satisfaction, without disrupting the core…complimentary.
  • More great perspective from Saugatuck:Most would agree that the cloud evolution will ultimately reach some larger percentage of cloud pure-play as highlighted in the graph. The flexibility of a “loosely coupled” application strategy, and a strong partnership with a vendor is critical to the success of this cloud journey. In addition - reference the co-innovation methodology, “state of mind” that is now the foundation of our cloud strategy moving forward. No vendor is in a better position than SAP to collaboratively innovate, and manage the evolution of business process requirements.
  • - Reference the value of innovation, and co-innovation with customers and partners. How SAP is leading the industry in the cloud here and integrating the cloud strategy collaboratively with CIO’s globally…establishing new standards, routes to value, and accelerating global business. -Reference recent SAPPHIRE NOW discussion with customers, and the value of the cloud community SAP is building. Between SAPPHIRE NOW, and SuccessConnect…no other vendor has assembled more cloud customers, users and partners.
  • Not separate trendsCloud bringing it together+the future is Social, Cloud and Mobile
  • Although the market sees social, mobile and big data as separate trends– we see all of them as essential elements of our Cloud solutionsOur Cloud solutions are designed to work the way people do: social / collaborative, mobile and insightful
  • Key points: Focusing on four key areas based on customer need and ready for disruption – Loosely couple architecture to combine data and processes – social built-inMarket looking at cloud, social, mobile, big-data as discrete trendsFrom an application perspective, the cloud business unit is focused on bringing these capabilities together for people to perform better in business…Focusing on helping customers manage their most important business assets – their customers, people, finance and suppliersDesign and deliver these solutions as loosely couple SuiteCustomers can adopt at their own paceThey work well together to provide value proposition of a SuiteOffer a standard integration with the Business Suite and each otherOffer one platform for our customers and partners to extend and create new apps in the cloud
  • Focus on solutions that help customers manage their most important assets: people, money, customers and suppliersDesign and deliver solutions as a loosely coupled SuiteCustomers can adopt at their own pace and their own wayWhen used together these solutions offer the value proposition of a suiteOffer standard integration with SAP Business Suite (on-premise) to support customers’ hybrid landscapesOffer unified and open platform for our customers and partners to create and run new apps in the cloud (and/or extend SAP cloud solutions) putting the "Business" back in Social Business.Continue to offer fully integrated suites for mid-market customers and subsidiaries of large enterprise (ByD) and small customers (B1 OnDemand)To deliver on the value of Cloud 2.0 for our customers, we will focus our effort in 4 key Line of Business areas where we see customer demand has shifted to the Cloud, which is applications designed to manage:People – where we are leveraging SuccessFactors’ leadership in delivering world class HCM solutionsCustomers – where we have launched the SAP Sales OnDemand solution as a new way to close dealsSuppliers – where we combine the capabilities of SAP Sourcing OnDemand, SAP Contract Management OnDemand, and Crossgate to provide customers with a new way to enable cost savings through sophisticated sourcing, comprehensive contract management and superior supplier managementMoney – where we bring SAP best practices to financial management in the Cloud. We give the ability extend applications in an open manner. These apps can be developed either by the customers themselves, or by partners.Show how customers can leverage investments on-premise with out of the box integrationOur goal is to help customers manage end to end processes – consequently we believe in a hybrid approach where On Prem investments link to cloud solutions seamlesslyShow how we are giving partners a choice to work with 3rd party PAASWith our approach, customers now have a one stop shop for their cloud applications – integrated with their on prem. They no longer need to look beyond SAP
  • The 1st area of differentiation is to let you consume on demand software as you need to meet business needs.Design and deliver solutions as a loosely coupled SuiteCustomers can adopt at their own pace and their own wayWhen used together these solutions offer the value proposition of a suiteLet’s say you are a heavy equipment manufacturer just entered into a joint venture in China. You will need a procurement solution to help source supplies, financials to roll up to the parent, and talent management to ensure the new team is aligned with goals across the parent companies. The JV needs to be up and running in 90 days. With SAP you can
  • Our product strategy is differentiated by 4 key factors.The first is the fact that we are the only company that is purposefully designing native integration of solutions with each other and with on premise investments. We do this not only because we recognize the importance of your on premise investments, but also because we believe in the value of end to end business processes. Putting the "Business" back in Social Business.SAP will deliver a reasonable level of consistency in user & customer experience across all Cloud solutions, regardless of which technology they are built onAll solutions will share a common set of services e.g. identity, business objects etc.They will also provide a seamless UI experience and SSO to the end-userThey will communicate with each other (and with external applications) via shared services and web service APIsSAP believes in choice – one size doesn’t fit all – We have an open + 1 strategy of the whole stack from the infrastructure to screen/UI.  SAP offers its own platform SAP NW Neo or JPaaS for building java based applications. All our platforms (internal and platforms that will be exposed as a service) will be powered by in-memory and mobile first principle.We believe the “next generation cloud applications” will be built on heterogeneous technology ( similar to any Web 2.0 companies, Google, Facebook….etc) and connected through networksSAP will provide choice to customers and partners to use the technology they want to build and run new Cloud applications, and/or extend SAP solutions SAP offers its own Platform-as-a-Service (NetWeaver Neo) to customers and partners to build and run Cloud applicationsSAP platform capabilities are being wrapped into web services that can be easily consumed by other solutions, and evolve without negatively impacting these solutionsThese services can also be used by customers and partners together with 3rd party technologyto maintain the “integrated experience” with SAP Cloud solutions
  • Key points: Current reality of hybrid – loosely couple architecture – need for partners and customers to extend cloud offeringsJourney to get here – following things had to happen:Cloud adoption in large enterpriseAPI driven loosely couple architecture has become central to our strategyThe solution and the user experience matters – not the underlying platformBut customers expect a consistent user-experience and data and process integration – i.e. a Suite-like experience – so integration is a key ingredient to bring the solutions together We are going to deliver standard out-of-the-box integration packages to connect cloud solutions to on-premise and between each otherFocus on:Data : i.e. data in SAP core available to SFSF without having to enter twiceProcess: i.e. data created in SFSF is reflected back in HR coreUser Experience : i.e. sigle-sign-on across cloud + onpremise systemsIntegration Toolset : for additional more specific integration needsAlready delivered the data integration package for SFSF Talent Suite to SAP HCM coreThese will be offered in RDS packagesBut recognize that customers may already have chosen third-party platforms for integration – we have partnered with Boomi, CastIron etc. to build specific integration contentWe will also offer a standard PaaS platform- NetWeaver Cloud - to run and deploy solutions in the cloud. It comes with runtime and services like monitoring, persistencyApplications will share common set of services like identity, profiles etc. They will provide seamless UI and SSO The apps will communicate with each other via web-service APIs - we will provide to allow partners and customers to extend the applicationsAnd again – we recognize that customers and partners may chose a different PaaS offering – and we will open our Apis for them to as wellCurrently in beta to 30+ customers and partners – GA later in the summerKey messages-          Free trial for everyboy via Developer center in SCN (http://scn.sap.com/community/developer-center/cloud-platform )-          Productive usage priced base on resource packages, starting as low as ~50 EUR / month-          SAP  is currently defining a dedicated partner program for SAP NW Cloud  delivery model-          SAP NW Cloud is operated in SAP data centers (public cloud model), there are currently no timelines for other delivery models
  • The third area of differentiation is designing our products for people centric usability. Our solutions will have a consumer like user experienceOur solutions will also all be mobile enabled – mobile firstWe are designing in social collaboration into all of our solutions.A true social strategy is about empowering people to work from wherever they are, think and interact in new ways, tackle business challenges in new ways, and to connect more directly with each other and with the data that matters. SAP is unmatched in its enterprise footprint in terms of applications, data, and processes and is in a unique position to deeply integrate and embed social and collaborative technologies to help people work better together, whether in the cloud or on-premise. Only SAP can deliver a seamless social experience across an entire business process, a multitude of applications and data, and an extended network of employees, customers, and partners to enable business-critical work from anywhere and to eliminate social collaboration silos.
  • Key Points: Social not a separate category – embedded into the fabric of all solutions – bringing together Jam and StreamWork use cases Jam and StWork both part of social software strategy led by Sameer Patel – termed project RobusBringing data, process, people and content together to drive business performanceTeams have been brought together to expand on the best of both solutionsThey are working on a consolidated roadmap so that we have one social platform going forward!
  • Focus on solutions that help customers manage their most important assets: people, money, customers and suppliersDesign and deliver solutions as a loosely coupled SuiteCustomers can adopt at their own pace and their own wayWhen used together these solutions offer the value proposition of a suiteOffer standard integration with SAP Business Suite (on-premise) to support customers’ hybrid landscapesOffer unified and open platform for our customers and partners to create and run new apps in the cloud (and/or extend SAP cloud solutions) Continue to offer fully integrated suites for mid-market customers and subsidiaries of large enterprise (ByD) and small customers (B1 OnDemand)To deliver on the value of Cloud 2.0 for our customers, we will focus our effort in 4 key Line of Business areas where we see customer demand has shifted to the Cloud, which is applications designed to manage:People – where we are leveraging SuccessFactors’ leadership in delivering world class HCM solutionsCustomers – where we have launched the SAP Sales OnDemand solution as a new way to close dealsSuppliers – where we combine the capabilities of SAP Sourcing OnDemand, SAP Contract Management OnDemand, and Crossgate to provide customers with a new way to enable cost savings through sophisticated sourcing, comprehensive contract management and superior supplier managementMoney – where we bring SAP best practices to financial management in the Cloud. We give the ability extend applications in an open manner. These apps can be developed either by the customers themselves, or by partners.Show how customers can leverage investments on-premise with out of the box integrationOur goal is to help customers manage end to end processes – consequently we believe in a hybrid approach where On Prem investments link to cloud solutions seamlesslyShow how we are giving partners a choice to work with 3rd party PAASWith our approach, customers now have a one stop shop for their cloud applications – integrated with their on prem. They no longer need to look beyond SAP
  • Here is where the proof comes in. This data was collected by McKinsey when they did a survey of over 500 of our largest customers. These results are impressive but they are also real. Our customers have found that by implementing SuccessFactors, they get some big benefits, not only in HR, but across the business as well. What kind of benefits? Well, things like a 15% decrease in turnover, 5% more time spent on strategic priorities, and a 14% increase in project completion rates. And they see on average a 3% increase in the productivity of their workforce. What's the financial impact of these things: Our customers were able to take the equivalent of 1% of revenues and add them back to the profits of the business. Yes, the equivalent of 1% of revenue added back to profit.  Our products are very cost effective and typically take only 2 to 6 months to implement. So time to value is a big advantage for us. And another key advantage here is the pace of innovation, because we update our software 4 times a year, our customers benefit from new features 4 times per year, which is a pace that can't be matched if you're running software in your own data center.    
  • Key points: Summary slide.
  • Key points: Focusing on four key areas based on customer need and ready for disruption – Loosely couple architecture to combine data and processes – social built-inMarket looking at cloud, social, mobile, big-data as discrete trendsFrom an application perspective, the cloud business unit is focused on bringing these capabilities together for people to perform better in business…Focusing on helping customers manage their most important business assets – their customers, people, finance and suppliersDesign and deliver these solutions as loosely couple SuiteCustomers can adopt at their own paceThey work well together to provide value proposition of a SuiteOffer a standard integration with the Business Suite and each otherOffer one platform for our customers and partners to extend and create new apps in the cloud
  • Key Points: Sales On Demand is already released – focused on driving sales teams to work together - maturing rapidly – integrated with CRM – soon to be augmented with Service and Marketing on Demand – highlight Social Customer Engagement OnDemand as a trend towards personal social engagement with end customersCRM is biggest market out there for Cloud offerings – but continue to hear different levels of dissatisfaction about the usefulness of existing CRM implementationsSales OD is a new generation of sales tool designed for sales team effectivenessNext release later this month introduces new marketing capabilities – more configurability – more customization and extensions + integration with ERP and CRMAlso GA of Social Customer Engagement OD – uses Facebook and Twitter for multi-channel support and marketing – partnered with NetbaseWe are making it a complete CRM Suite with Marketing OD and Service OD in Q3HANA adoption for sales forecasting planned for Q4We have over 100 companies in various stages of adopting companies
  • Key Points: Defer to following session (by Dmitri) to go into details of roadmap of how we have consolidated and combined our portfoliosFocus on Employee Central as go-forward solution for HCM coreSAP will offer payroll solution in the cloud – integrated with Employee central – existing partnerships with BPO providers like Northgate and ADP not affectedCareer OnDemand concepts transitioned into SF Talent Suite roadmapWe also want to fully leverage HANA and SFSF workforce analytics for future HCM analyticsWe have all heard the talk about big data and how SAP has delivered an amazing product called HANA to tackle the challenges of big data head on. -       We are excited to deploy HANA in our cloud for our Workforce Analytics product and offer this to customers in the 2nd half of this year. -       Customers will be able to combine their talent data with key business data, and get insight they only imagined before.  We will move beyond basic reports like performance score distribution and compensation history to reports that look across an employees entire work history combined with robust business data.  You will be able to find out who your best managers are – do the people they manage go on to do great things-       The combination with SAP not only allows us to use HANA, it allows us to include more SAP data in our workforce analytics.  We have been working with SAP for a long time with our analytics product, and now we can do it with a  more robust set of extraction and transformation tools.  This will lower your cost of ownership and ultimately give you the data and high performance in-memory analytics to make better decisions5394% improvement in application permission control performance, 1262% on average> 1000% reduced latency in data acquisition and latency in analytical view creation Ability to create benchmarks on the fly for real-time comparisons
  • Key points: Procurement shows significant market opportunity – existing solution Sourcing OnDemand – 750 customers – like the built-in integration with the business Suite – business network enhances to connect customers with trading partnersProcurement is another area with a lot of market opportunity for cloud solutionsWe have solution in the cloud – e.g. Sourcing OD. We have 750 customers And of course our recent acquisition announcement is intended to accelerate this business as well and gives us leadershipAnd of course we believe that B2B networks is extremely complimentary to the cloud business. It impacts the way enterprises connect and collaborate with their global networks – we see the opportunity to connect our customer base with global trading partners for example – combine that with HAN and perhaps we can provide real-time commerce analytics etc.
  • ASUG Cloud Strategy ~ Bridging the gap between IT and LoB

    1. 1. Developing Cloud StrategiesBridging the gap between IT and Line of BusinessSven Denecken, VP Strategy and Co-Innovation Cloud Unit, SAP AG
    2. 2. SAP’s cloud strategy - where do we play today? Software as a Service focus cloud Platform as a Service areas Infrastructure as a Service P enabling virtualization on premise for the cloud hosted on premise P Active participation P Partner© 2012 SAP AG. All rights reserved. 2
    3. 3. Cloud – not only hype, but reality 59% of large enterprises Further growth expected: 79% of the respondents indicate that Cloud 21% of the remaining consider Cloud Computing to solutions are already respondents say that their be important for the used in their companies* companies plan to use business success of their Cloud solutions in the companies. future Source: TNS Infratest Online Survey Q1 2012 on behalf of SAP with 601 respondents of large enterprises from US, UK, Germany and Brazil„61% see mobile devices significantly improve value andusefulness of Social Cloud solutions” „65% agree, that the most important long-term benefits of Cloud are greater business flexibility and agility vs. cost savings” „46% agree to the statement, that embedding “social” capabilities into important business workflows is critical to their company’s success” Source: Saugatuck Technology, 2012 Cloud Business Solution Survey, Global, N-228 (Feb 2012)© 2012 SAP AG. All rights reserved. 3
    4. 4. What is the essence of Cloud? VELOCITY© 2012 SAP AG. All rights reserved. 4
    5. 5. Meeting the CloudSAP will deliver the next generation Cloud Consumer-like user experience with “mobile first” development approach Rapid innovation cycles and customer co-innovation to support greater businessflexibility and agility Social collaboration as an embedded , integral part of our product designAdditionally Real-time data and content, B2B exchanges, and analytics Open integration for heterogeneous IT environments, in addition to native point-to-pointintegration with SAP solutions Harmonized user experience, data models and processes across solutions without losingflexibility and speed© 2012 SAP AG. All rights reserved. 5
    6. 6. Cloud Computing – big market potential 20% of companies expect 50% or more of their IT budget to be spent for cloud software solutions within the next 36 months Expectation: What % of the IT budget in the company will be spent for Cloud software solutions within the next 36 months? > 75% 50% - 75% 25% - 50% 10% - 25% <10% Don’t know 20% expect to spend 50% or more on Cloud software solutions Source: TNS Infratest Online Survey Q1 2012 on behalf of SAP with 601 respondents of large enterprises from US, UK, Germany and Brazil© 2012 SAP AG. All rights reserved. 6
    7. 7. After the storm – the shift to the Cloud accelerates Saugatuck Technology: “Through 2016, Hybrid-Cloud becomes the enterprise platform of choice – a transitional platform, however, en route to a future dominated by public and private clouds.” “By 2016, 75 percent or more of NEW enterprise IT spend will be Cloud-based or Hybrid.” Source: Saugatuck Technology, 2012 Cloud Business Solution Survey, Global, N-228 (Feb 2012)© 2012 SAP AG. All rights reserved. 7
    8. 8. Cloud deployments increasingly focus on business process innovationForrester identifies the following trends, valid for companies in more mature and industrialized ITmarkets in North America and Europe: 1. Companies improve the core business processes with new SaaS functionality 2. Companies are using cloud services for new, innovative technologies 3. Companies subscribe to Cloud services to improve business user satisfactionSource: Forrester Research, The Changing Cloud Agenda, Holger Kisker, Ph.d., April 24, 2012© 2012 SAP AG. All rights reserved. 8
    9. 9. After the storm – the shift to the Cloud accelerates A cornerstone of SAP’s cloud strategy is to enable our customers to adopt the cloud in an incremental, hybrid solution model  Protect and leverage existing investments  Support change without disruption  Provide customers with the best of both worlds We are focused on delivering four high-value Line of Business solutions for HCM, FIN, Sales and Procurement  All solutions can be consumed at a company’s pace – “Loosely Coupled”  All solutions connect and integrate through open, Cloud-based integration for SAP and 3rd party Cloud solutions as well as existing on premise systems  All solutions can be tailored to customer’s needs, with industry-specific capabilities to be added via extension frameworks without losing the virtues of the Cloud  Provisioning of out-of-the box, extensible content and tools to simplify and accelerate Cloud integration  Fully enabled ecosystem to support our customers in their adoption of the Cloud© 2012 SAP AG. All rights reserved. 9
    10. 10. Adjusting the Cloud StrategyCIOs need to build their cloud strategy based on business agility and innovation.While cost considerations remain to be an important element of any cloud business plan, CIOs need tobuild their strategy around existing assets and complement these assets with new, innovative businessfunctions from cloud service providers that can be quickly implemented to increase business agility.CIOs should discuss collaborative cloud opportunities with their peers.Together with their business partners, CIOs should identify B2B processes that could benefit fromcloud collaboration services and build an ecosystem of industry and IT partners that are able to buildand operate such a collaborative business platform.Source: Forrester Research, The Changing Cloud Agenda, Holger Kisker, Ph.d., April 24, 2012© 2012 SAP AG. All rights reserved. 10
    11. 11. SAP Innovating with Speed mobile applications cloud database & technology analytics© 2012 SAP AG. All rights reserved. 11
    12. 12. SAP is strongly focused on Cloud Computing SAP Cloud Solutions Choose from a leading portfolio of cloud-based solutions designed to work the way people do: collaborative, mobile and insightful. Built with one consistent architecture, social and Cloud 24 Industries 11 Lines of Business scalable – leveraging Mobile the full power of SAP HANA Analytics Go to Market Applications Database and Technology Powered by SAP HANA© 2012 SAP AG. All rights reserved. 12
    13. 13. Transition – Enabling Customers to move their SAP On-Premise Solutions into the Cloud That means SAP supports customers the way they want to run their business public cloud virtual servers private cloud physical servers physical servers© 2012 SAP AG. All rights reserved. 13
    14. 14. SAP Cloud based SME Portfolio SAP Business ByDesign is mature and stable 1,000+ customers Companies with more than 500 employees A single application covering all Complete, adaptable Small Business Essentials On-Demand business solution selecting SAP Business ByDesign For small businesses seeking a For midsize companies seeking a single integrated solution to run complete solution, with limited IT their entire business resources and budget SME’s want to have choice of all deployment models • 10~100 employees • 50 to 1000 employees • On-premise deployment • On-demand deployment SAP will continue to invest and evolve SAP • Traditional licensing • Monthly subscription Business One in both solution architecture & • Go live in ~4 weeks • Go live in 1~6 weeks GTM • General industry functionality • General industry functionality • Available in 40+ countries • Available in 9 countries (2011) SAP Business One will become SAP’s small enterprise cloud solution© 2012 SAP AG. All rights reserved. 14
    15. 15. SAP Cloud Focus Areas - Today People Customers Money Suppliers Loosely Coupled, End-to-End Integration Open Cloud Platform, Social, Mobile, Big Data© 2012 SAP AG. All rights reserved. 15
    16. 16. SAP’s focus in the Cloud – Design Principles People Open Centric Integration Customers People Money SAP & Ecosystem Hybrid with existing Apps On-Premise Suppliers Open Cloud Platform, Social, Mobile, Big Data© 2012 SAP AG. All rights reserved. 16
    17. 17. The SAP Cloud Difference 1. Our solutions are “loosely coupled” - they can be consumed as you require, at your own speed - to meet your specific business needs Suppliers Customers Financials People© 2012 SAP AG. All rights reserved. 17
    18. 18. The SAP Cloud Difference 3. All SAP cloud solutions will leverage and extend your existing on premise investments, with a focus on end to end process management Money People Customers Suppliers Suites One Cloud Platform, Social, Mobile, Big Data On Premise Investments© 2012 SAP AG. All rights reserved. 18
    19. 19. SAP Cloud Openness Use your own in-house developers Custom App Partner App SAP Extension SAP NetWeaver Cloud (PaaS) 3rd Party PaaS $€¥ Customers People Money Suppliers SAP NetWeaver Cloud Integration 3rd Party 3rd Party Integration Platforms Clouds Your Business On Premise© 2012 SAP AG. All rights reserved. 19
    20. 20. RDS Packages for Cloud Solutions Cloud On Premise 1. Engineered Service (Q3) HCM to BizX (file based) 2. Data exchange RDS with delta handling using Avatar / PI (Q4) ECC 3. Data Migration RDS 4. HR Power Reporting with Hana RDS (Q1) HCM (Q1) Data migration / exchange Packages possible 1. SAP II OnDemand RDS SAP Information 2. SAP II oD for P2P RDS Interchange (fka Crossgate) 3. SAP TM Tendering RDS 4. SAP TM Ocean Carrier (Q3) SAP Streamwork CRM - Streamworks RDS (Q3) CRM Integration Packages Customer / Money / Packages possible Travel onDemand© 2012 SAP AG. All rights reserved. 20
    21. 21. The SAP Cloud Difference 3. Our solutions offer consumer-grade user experience and are people centric© 2012 SAP AG. All rights reserved. 21
    22. 22. “Social” baked in Total JAM Users (in Millions) Cohesive: Connect people, process, analytics and content Results-driven:Improve business execution and accelerate performance Secureand Hybrid: Across cloud and on-premise Q3’11 Q4’11 Q1’12 Current© 2012 SAP AG. All rights reserved. 22
    23. 23. SAP’s Strategic Cloud Themes – Key Value  Embracing social as  Aligning everyone with primary channel to the company objectives engage with customers  Empowering people to  Shifting focus from take charge of their sales efficiency to sales career effectiveness  Making financial impact  Tapping into networks transparent for any of suppliers to increase business decision efficiency, reach & access  Providing business context for any financial  Leveraging real-time decision insight from global networks Open Cloud Platform, Social, Mobile, Big Data© 2012 SAP AG. All rights reserved. 23
    24. 24. Business Eecution – BizX business impact Cost Savings Strategic Alignment Productivity Business Results (15.2)% 5.5% 3% 1% decrease in turnover increase in time spent on average increase in revenue added strategic priorities productivity back to profit 13.7% 1 - 8+ weeks 4.9% increase in internal faster communication increase in high job fill rate of strategy performers (13.8)% 17% 14% decrease in low increase in people getting increase in project performers the right training completion Over 3,500 customers and 15 million subscribers© 2012 SAP AG. All rights reserved. 24
    25. 25. SUMMARY - OUR CLOUD STRATEGY  Focus on solutions that help customers manage their most important assets: customers, people, money, and suppliers  Design and deliver solutions as a loosely coupled Suite Customers can adopt at their own pace and their own way When used together these solutions offer the value proposition of a suite  Offer standard integration with SAP Business Suite (on-premise) to support customers’ hybrid landscapes  Offer unified and open platform for our customers and partners to create and run new apps in the cloud (and/or extend SAP cloud solutions)  Continue to offer fully integrated suites for mid-market customers and subsidiaries of large enterprise (BYD) and small customers (B1 OnDemand)© 2012 SAP AG. All rights reserved. 25
    26. 26. Thank You!Contact information:Sven DeneckenVice PresidentCloud Strategy and Head of Co-Innovation, SAP AG @SDenecken
    27. 27. © 2012 SAP AG. All rights reserved.No part of this publication may be reproduced or transmitted in any form or for any purpose without the express Google App Engine, Google Apps, Google Checkout, Google Data API, Google Maps, Google Mobilepermission of SAP AG. The information contained herein may be changed without prior notice. Ads, Google Mobile Updater, Google Mobile, Google Store, Google Sync, Google Updater, Google Voice, Google Mail, Gmail, YouTube, Dalvik and Android are trademarks or registered trademarks of Google Inc.Some software products marketed by SAP AG and its distributors contain proprietary software components ofother software vendors. INTERMEC is a registered trademark of Intermec Technologies Corporation.Microsoft, Windows, Excel, Outlook, PowerPoint, Silverlight, and Visual Studio are registered trademarks of Wi-Fi is a registered trademark of Wi-Fi Alliance.Microsoft Corporation. Bluetooth is a registered trademark of Bluetooth SIG Inc.IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System Motorola is a registered trademark of Motorola Trademark Holdings LLC.z10, z10, z/VM, z/OS, OS/390, zEnterprise, PowerVM, Power Architecture, PowerSystems, POWER7, POWER6+, POWER6, POWER, PowerHA, pureScale, PowerPC, BladeCenter, System Computop is a registered trademark of Computop Wirtschaftsinformatik GmbH.Storage, Storwize,XIV, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, AIX, Intelligent SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork,Miner, WebSphere, Tivoli, Informix, and Smarter Planet are trademarks or registered trademarks of IBM SAP HANA, and other SAP products and services mentioned herein as well as their respective logos areCorporation. trademarks or registered trademarks of SAP AG in Germany and other countries.Linux is the registered trademark of Linus Torvalds in the United States and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as theirAdobe, the Adobe logo, Acrobat, PostScript, and Reader are trademarks or registered trademarks of Adobe respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business ObjectsSystems Incorporated in the United States and other countries. is an SAP company.Oracle and Java are registered trademarks of Oracle and its affiliates. Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase Inc.UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Sybase is an SAP company.Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or Crossgate, m@gic EDDY, B2B 360°, and B2B 360° Services are registered trademarks of Crossgate AGregistered trademarks of Citrix Systems Inc. in Germany and other countries. Crossgate is an SAP company.HTML, XML, XHTML, and W3C are trademarks or registered trademarks of W3C®, World Wide Web All other product and service names mentioned are the trademarks of their respective companies. DataConsortium, Massachusetts Institute of Technology. contained in this document serves informational purposes only. National product specifications may vary.Apple, App Store, iBooks, iPad, iPhone, iPhoto, iPod, iTunes, Multi-Touch, Objective-C, Retina, Safari, Siri, The information in this document is proprietary to SAP. No part of this document may be reproduced, copied,and Xcode are trademarks or registered trademarks of Apple Inc. or transmitted in any form or for any purpose without the express prior written permission of SAP AG.IOS is a registered trademark of Cisco Systems Inc.RIM, BlackBerry, BBM, BlackBerry Curve, BlackBerry Bold, BlackBerry Pearl, BlackBerry Torch, BlackBerryStorm, BlackBerry Storm2, BlackBerry PlayBook, and BlackBerry App World are trademarks or registeredtrademarks of Research in Motion Limited. © 2012 SAP AG. All rights reserved. 27
    28. 28. Appendix
    29. 29. SAP Cloud Focus Areas - Today People Customers Money Suppliers Loosely Coupled, End-to-End Integration Open Cloud Platform, Social, Mobile, Big Data© 2012 SAP AG. All rights reserved. 29
    30. 30. Customer relationship management in the cloudCustomers Sales OnDemand FullCRM – Sales, Service and Marketing Driving sales effectiveness, team- based collaborative selling Integration with ERP and CRM On Premise Analyze and manage customer sentiments through social media Social Customer like Facebook and Twitter Engagement OnDemand© 2012 SAP AG. All rights reserved. 30
    31. 31. People People management in the cloud BizX Insights Goals Performance Workforce Recruiting Compensation Learning Succession Jam Analytics Planning Employee Central On-Premise: SAP HCM Pre-Built, Packaged Integration Core HR and Payroll Time & Attendance Management© 2012 SAP AG. All rights reserved. 31
    32. 32. Financial management in the cloud Money Built by SAP R/3 domain experts Employee Central … Hundreds of live customers worldwide Project Management Financial Certificate issued by: Sales SAP FinancialsProcure Sourcing Order to Financials to Pay OnDemand Cash OnDemand OnDemand OD  Core Finance  Partner Extensions… Travel OnDemand© 2012 SAP AG. All rights reserved. 32
    33. 33. Supplier management in the cloudSuppliers Headquarters Plants Regional Offices Regional Partner Headquarters Extend your business: Distributors Supplier Distribution Centers Business partners join the network Joint Ventures Manufacturing Site Subsidiary once, transact and collaborate Sales Office Regional Headquarters Easy to use: Intuitive, complete sourcing, contract and supplier management Insightful:Predictive supplier performance management to mitigate risk© 2012 SAP AG. All rights reserved. 33
    34. 34. THANK YOU Sven Denecken Vice President Head of Co-Innovation SAP AG Twitter: @SDenecken sven.denecken@sap.com

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