Cloud Computing & Saa S, Sap By Design

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We are in the midst of a pronounced shift from client-server to Cloud computing. The economics of running your business on the Cloud are truly compelling, with significant cost advantages for both business apps as well as personal productivity apps.

Track 1: Opportunities in Cloud Computing: An evangelist approach

Track2 : 4 Steps to a Best Run Business

Track3 : SAP strengthens product portfolio with Business ByDesign

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  • THE ADVANTAGES OF SAASClearly, it is important to consider the business advantages of each potential solutionbefore deciding. Let’s take a minute to consider all the advantages of SaaS asa solution. SaaS offers certain business advantages to small and midsize businessesthat other potential solutions do not:Financial Value• Time to Value – SaaS is quickly installed and more quickly made part of thework process when compared with on-premise software. Often it is possible toself-provision a trial use, or “try before you buy,” a SaaS solution to get a feelfor how it looks, feels and operates. Typically, once licensed, a SaaS purchaseris up and running in a matter of days or weeks, rather than months, as ismore frequently the case with traditional vendor software. As a consequence,the SaaS purchaser can begin to realize the business benefits earlier. The paybackperiod is much quicker, and the ROI is significantly better than with vendorsoftware.• Affordability – SaaS does not require large up-front investment, and especiallyin a recession presents less of a financial hurdle when compared with onpremisesoftware. Small-to-midsize businesses with limited capital budgetsand limited IT support will find SaaS is far more suitable to their needs thanvendor software. Two recent studies comparing the total cost of ownership ofSaaS versus on-premise vendor software each show approximately 30% lowercosts with SaaS, whether the implantation is for 30 (Yankee Group) or for 200(McKinsey Consulting) users.New Technology• Continuous Innovation – Instead of twice yearly upgrades, SaaS solutionscan be enhanced on a regular and almost continuous basis. Major releases mayalso appear annually, consolidating all of the enhancements along the way.One of the key enabling SaaS technologies, multi-tenancy, makes possible thiscontinuous stream of enhancements. SaaS users do not have to wonderwhether a new release or upgrade will break their system or cause a significantdelay in parallel testing prior to switching over into full production. The SaaSprovider assumes this responsibility behind the scenes and without intrusiveness.Improved Operations• Customization It has become increasingly easy to adapt SaaS solutions to fitthe needs of small-to-midsize businesses. Some SaaS solutions exploitmultitenancy to enable customization by programmers or system integra-tors. Other SaaS solutions target end users with easy-to-use configuration capabilitiesthat allow non-programmers to easily modify their look-and-feel ortheir business processes. For many small-to-midsize businesses, configurationmay be a more appropriate approach, due to its simplicity and lower cost (noprogrammer required).•• Fewer Technical Resources – Possibly one of the least-anticipated SaaSbenefits is that it requires significantly fewer technical resources to managethan on-premise software, reducing the strain on IT organizations. For thesmall-to midsize business this is an enormous advantage. At the same time, byutilizing the expertise of the SaaS provider, which has state-of-the-art data centersand technology at its disposal, the small-to-midsize business can take advantageof the latest in leading-edge technologies, including Web 2.0 and collaborationcapabilities that might otherwise be beyond its reach. In this way,the small-to-midsize business can obtain access to next-generation technologywithout having to manage it.• Focus – Without the distraction of managing the IT function – hardware, software,networks and technicians – the small-to-midsize company will be freedup to focus on its core competencies, its core value-add. SaaS is a way of outsourcingthe onerous aspects of the essential IT systems the small-to-midsizecompany needs to run its business and manage the challenges of growth, regulationand competition.
  • Are you equipped?
  • Cloud Computing & Saa S, Sap By Design

    1. 1. Build Business On The Cloud, drive profits on the GroundWebinar<br />Rohit Madhur - Director, SAP Business By Design<br />Tarun Gulati - Business Manager, SAP Business By Design<br />Rakesh Prasad - Solution Advisor, SAP Business By Design<br />30th September 2009<br />
    2. 2. © SAP 2008 / Page 2<br />Agenda<br />Opportunities in Cloud Computing: An evangelist approach<br />1.1. SaaS Market Opportunity<br />1.2. Economic uncertainty<br />1.3. Benefits of SaaS<br />1.4. Key considerations for evaluating SaaS products<br />4 Steps to a Best-Run-Business<br />2.1. Key Obstacles to Growth<br />2.2. Create and Track KPI’s<br />2.3. The 4 Steps to a Best-Run-Business<br />SAP strengthens product portfolio with Business ByDesign<br />3.1. Today’s Reality<br />3.2. SME Product portfolio & positioning of SAP Business By Design<br />3.3. SAP Business ByDesign<br />
    3. 3. SaaS Market Opportunity<br />
    4. 4. Slowing demand<br />(spending cut-back, customers postponing purchases)<br />Rising costs<br />(inflation, energy/commodity prices, healthcare costs…)<br />Reduced credit<br />(tougher lending standards, declining loan/line of credits)<br />Global Economic Uncertainty<br />Economic Environment<br />Measurable Impact on Your Business<br />Translating into…<br /><ul><li>Lack of access to funds
    5. 5. Reduced cash flow
    6. 6. Rising inflation risks
    7. 7. High market volatility
    8. 8. Wave of consolidations
    9. 9. Government re-regulation
    10. 10. Declining consumer optimism</li></ul>Revenue, Income<br />COGS, Margins<br />Cash flow, Liquidity<br />Source: <br /><ul><li>NFIB Small Business Economic Trends, October 2008
    11. 11. The Conference Board Mid-Market CEO Challenge, 2007
    12. 12. Collateral Damage, The Boston Consulting Group, Oct 2008</li></li></ul><li>Benefits of SaaS<br />
    13. 13. Key Considerations for evaluating SaaS products<br /><ul><li>Form an evaluation group that includes operations, Finance and IT
    14. 14. Expect the evaluation to take some time - understanding and evaluation of expected results
    15. 15. Understand the vendor's strategy and approach (i.e. point solution or are they offering an end-to-end solution)
    16. 16. Is the vendor proven and stable or a relative newcomer
    17. 17. Determine how their strategy fits with both your short- and long-term needs</li></li></ul><li>© SAP 2008 / Page 7<br />Agenda<br />Opportunities in Cloud Computing: An evangelist approach<br />1.1. SaaS Market Opportunity<br />1.2. Economic uncertainty<br />1.3. Benefits of SaaS<br />1.4. Key considerations for evaluating SaaS products<br />4 Steps to a Best-Run-Business<br />2.1. Key Obstacles to Growth<br />2.2. Create and Track KPI’s<br />2.3. The 4 Steps to a Best-Run-Business<br />SAP strengthens product portfolio with Business ByDesign<br />3.1. Today’s Reality<br />3.2. SME Product portfolio & positioning of SAP Business By Design<br />3.3. SAP Business ByDesign<br />
    18. 18. Key Obstacles to Growth: Survey Results<br />Major Impediments to Growth<br /><ul><li>Reducing contract prices is a big obstacle to growth for 57% of SME’s in Asia Pacific
    19. 19. Rising cost of materials and services is another major impediment to growth, as accepted by 47% SME’s
    20. 20. High labor cost vis-à-vis competitors in other counties
    21. 21. Tight availability of Financing</li></li></ul><li>© SAP 2008 / Page 9<br />KPI Driven Business Management<br />Possible Objectives<br />KPI‘s needed<br />Possible Objectives<br />KPI‘s needed<br />Possible Objectives<br />KPI‘s needed<br />Customer Support & Services<br />HR & People<br /><ul><li>Facilitate communication with customers
    22. 22. Ensure customer satisfaction and loyalty
    23. 23. Customer retention
    24. 24. Time to resolution for problems
    25. 25. Revenue per service order
    26. 26. Support continued business profitability
    27. 27. Shorten lead-to-close cycle
    28. 28. Expand the customer base
    29. 29. Marketing campaign effectiveness
    30. 30. Sales revenue, pipeline and margins
    31. 31. Sales force productivity
    32. 32. Manage organizational change efficiently
    33. 33. Integrate HR business processes into other parts of the business
    34. 34. Number of employees and employee turnover
    35. 35. Labor costs as a percentage of sales
    36. 36. Revenue per employee</li></ul>Sales & Marketing<br />
    37. 37. © SAP 2008 / Page 10<br />KPI Driven Business Management<br />Possible Objectives<br />KPI‘s needed<br />Possible Objectives<br />KPI‘s needed<br />Finance<br />Services Supply chain<br /><ul><li>Increase accounting transparency
    38. 38. Automate manual tasks to enable faster closes
    39. 39. Maximize the efficiency of working capital
    40. 40. Ensure compliance with local and international regulations
    41. 41. Cash flow and capital funding
    42. 42. Profitability
    43. 43. Total company value and worth
    44. 44. Minimize Project delays
    45. 45. Maintain project profitability
    46. 46. Increase the quality of service delivered
    47. 47. Productivity
    48. 48. Service levels
    49. 49. Service delivery time</li></li></ul><li>© SAP 2008 / Page 11<br />360 degree visibility to make faster, smarter decisions<br /><ul><li>Faster decision making
    50. 50. Integrate different versions of truth into one system
    51. 51. Make decisions on facts, not on emotions or spotty communication
    52. 52. Increased productivity throughout the organization</li></ul>Minimize risk and Liability<br /><ul><li>Seamlessly manage new regulatory compliance
    53. 53. Create KPI’s and consistently track progress
    54. 54. Embed metrics and reports into your end-to-end processes
    55. 55. Tighter control on financial performance, product/service quality, delivery standards, SLA’s</li></ul> Control your cost structure, end-to-end<br /><ul><li>Embed process controls to efficiently schedule resources
    56. 56. Automate routine tasks to strip out inefficiencies
    57. 57. Setup a collaborative, optimized team across your company</li></ul>Best Run Business<br /><ul><li>Optimum utilization of resources
    58. 58. Visibility to pinpoint inefficiencies and capability to transform them into competitive advantage
    59. 59. Optimized operations and best practices extended to entire value chain</li></ul>Anticipate Change<br /><ul><li>Build a flexible business model to manage and embrace changes that will invariable come
    60. 60. Quickly rollout new processes or adapt existing Business processes
    61. 61. Set your business to throttle up or down to meet rapidly changing and unpredictable customer requirements</li></ul>The 4 Steps to a Best-Run-Business<br />
    62. 62. © SAP 2008 / Page 12<br />Agenda<br />Opportunities in Cloud Computing: An evangelist approach<br />1.1. SaaS Market Opportunity<br />1.2. Economic uncertainty<br />1.3. Benefits of SaaS<br />1.4. Key considerations for evaluating SaaS products<br />4 Steps to a Best-Run-Business<br />2.1. Key Obstacles to Growth<br />2.2. Create and Track KPI’s<br />2.3. The 4 Steps to a Best-Run-Business<br />SAP strengthens product portfolio with Business ByDesign<br />3.1. Today’s Reality<br />3.2. SME Product portfolio & positioning of SAP Business By Design<br />3.3. SAP Business ByDesign<br />
    63. 63. Today’s Reality for Many Midsize Companies:Point solutions, manual processes, spreadsheets<br /><ul><li> Need to improve profits
    64. 64. Need to grow without disruptions
    65. 65. Need to do it with limited cashflow and risks</li></li></ul><li>There Have Traditionally Been CompromisesIn deploying business solutions for midsize companies<br />Solution Breadth<br />Solution Depth<br />Cost of Ownership<br />Adaptability<br />Implementation / Deployment<br />IT Complexity<br />High Value<br />Affordability<br />
    66. 66. SAP Business ByDesignNew solution – Design goal<br />Addressing the Needs of an Underserved Market<br />Situation Today Mix of Point “Solutions”<br />The New StandardSAP Business ByDesign<br />Mix of outdated systems, point “solutions” and spreadsheets<br />The affordable and most complete on-demand solution for midsize companies<br />
    67. 67. Where does SAP Business ByDesign fits in SAP’s SME Portfolio?<br />A comprehensive, integrated industry solution to power your business end-to-end<br />A single integrated solution to manage their entire business<br />The best of SAP, delivered on-demand<br />For midsize companieswith industry needs that want a scalable foundation<br />For small businesseswho have outgrown their packaged accounting-only solutions<br />For companies who need business software but don’t want to support a large IT backbone<br /><ul><li>10~100 employees
    68. 68. On-premise deployment
    69. 69. Traditional licensing
    70. 70. Go live in 6~8 weeks
    71. 71. General business functionality
    72. 72. 550+ add-on solutions, many industry specific
    73. 73. Available in 20 languages and 40 country-specific versions
    74. 74. 100 to 500 employees
    75. 75. SaaS deployment
    76. 76. Monthly subscription
    77. 77. Go live in 4~8 weeks
    78. 78. General business functionality based on best practices
    79. 79. Available only in US, Germany, France, United Kingdom, China and India (2009)
    80. 80. 100~2,500 employees
    81. 81. On-premise deployment
    82. 82. Traditional licensing
    83. 83. Go live in 8~16 weeks
    84. 84. 660+ industry-specific solutions
    85. 85. Available in 50+ countries</li></ul>NEW Fast-Start Program<br /><ul><li>Pre-tested, preinstalled solutions
    86. 86. Predictable project scope
    87. 87. Go live in 8~12 weeks</li></li></ul><li>SAP Business ByDesignAffordable, Predictable, Easy to Adopt<br />On-demand<br /><ul><li>Always up-to-date software, managed by SAP experts in world class data centers</li></ul>Built in service and support<br /><ul><li>Remote monitoring with automated support</li></ul>User training and education<br /><ul><li>Self-guided, self paced, context sensitive built-in learning</li></li></ul><li>SAP Business ByDesign – Solution Map<br />Supplier Relationship Management<br /><ul><li>Planning
    88. 88. Key Performance Indicators
    89. 89. Product Portfolio
    90. 90. Supplier Base
    91. 91. Purchase Requests & Orders
    92. 92. Goods & Services Receipts
    93. 93. Supplier Invoicing
    94. 94. Sourcing & Contracting
    95. 95. Self Service – Shopping
    96. 96. Analytics</li></ul>Human Resources<br /><ul><li>Planning
    97. 97. Key Performance Indicators
    98. 98. Personnel Administration
    99. 99. Time Administration
    100. 100. Resource Management
    101. 101. Self Service
    102. 102. Analytics</li></ul>Customer Relationship Management<br /><ul><li>Products & Services
    103. 103. Pricing
    104. 104. Sales Planning
    105. 105. Key Performance Indicators
    106. 106. Account Management
    107. 107. Marketing
    108. 108. New Business
    109. 109. Sales Orders
    110. 110. Service Entitlements
    111. 111. Service Desk
    112. 112. Service Orders
    113. 113. Field Services & Repair
    114. 114. Customer Invoicing
    115. 115. Analytics</li></ul>Financial Management<br /><ul><li>Financial Planning
    116. 116. Key Performance Indicators
    117. 117. General Ledger
    118. 118. Receivables
    119. 119. Payables
    120. 120. Payment Management
    121. 121. Cash & Liquidity Management
    122. 122. Travel & Expenses
    123. 123. Fixed Assets
    124. 124. Cost & Revenue
    125. 125. Inventory Valuation
    126. 126. Tax Management
    127. 127. Audits
    128. 128. Analytics</li></ul>Supply Chain Management<br /><ul><li>Demand Planning
    129. 129. Supply Planning
    130. 130. Supply Control
    131. 131. Outbound Logistics Control
    132. 132. Execution
    133. 133. Inbound Logistics
    134. 134. Outbound Logistics
    135. 135. Internal Logistics
    136. 136. Physical Inventory
    137. 137. Quality Assurance
    138. 138. Production Control
    139. 139. Analytics</li></ul>Project Management<br /><ul><li>Planning
    140. 140. Key Performance Indicators
    141. 141. Project Management
    142. 142. Project Team
    143. 143. Change Management
    144. 144. Document Center
    145. 145. Project Time & Expenses
    146. 146. Cost & Revenue, Project Profitability
    147. 147. Customer Invoicing & Analytics</li></li></ul><li>SAP Business ByDesignBenefits<br />IT<br />IT<br />IT<br />IT<br />IT<br />IT<br />IT<br />IT<br />IT<br />IT<br />IT<br />Predictable, <br />Affordable, <br />Manageable IT<br />360 DegreeSolution<br />Easy-to-Use <br />and Adapt<br />1<br />2<br />3<br />
    148. 148. You can also write us on:-<br />Rohit Madhur – rohit.madhur@sap.com<br />Tarun Gulati – tarun.gulati@sap.com<br />Rakesh Prasad – rakesh.prasad@sap.com<br />Questions &<br />ANSWERS<br />http://www.sme.sap.com<br />

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