The document discusses how SAP NetWeaver enables smart enterprises by addressing five key business challenges through business intelligence. It provides the complete, end-to-end and open BI platform needed for effective decision making, compliance, aligning strategy with execution, understanding competitors and markets, and justifying IT budgets. Case studies of Aventis and Dow Corning are presented showing how SAP NetWeaver addressed their challenges.

1. SAP NetWeaver: Enabling the Smart Enterprise Lothar Schubert SAP Labs Palo Alto, LLC [email_address]

2. Sustainable, Profitable Growth THE WINNING STRATEGY Refocus on GROWTH as the economic re-bound has arrived Drive PROFITABILITY of growth as you keep improving margins Ensure SUSTAINABILITY of growth as you innovate

3. The Winning Strategy GROWTH THROUGH INNOVATION Relationship excellence Product/service excellence Operational excellence Sustainable, Profitable Growth Inno- vation Inno- vation Inno- vation

4. Departmental Perspectives “ not a key customer” “ it’s just one missed sale” “ see & wait” “ will be back in inventory” ??? “ extra effort costs $$$”

5. The Bigger Picture: External and Internal Pressures Labor market Interest rates SOX Basel II Price competition Vertical integration Demographics Buying behavior Macro Economical Trends Competitive Forces Market Trends Compliance Requirements

6. Integrated Management Processes Corporate Strategy Increase quality of service Drive transparency Invest in innovation … Strategic Planning Scenario simulation Cash-Flow Forecast Management Goal setting Alignment of interest Goal measurement Perform. Management Operational planning Process optimization Operational execution

7. 5 Key Business Challenges 2. Ineffective Decision Making Processes Decisions delayed, or made on ‘gut feel’ only Key stakeholders not involved Solid information only available to small ‘elite’ 1. Execution not aligned with Corporate Strategy Corporate strategy not communicated clearly Individual objectives not aligned with strategy Poor measurement, and no corrective actions 3. Increasing Competitive and Market Pressures Lack of insight into markets and trends Opportunities frequently missed 4. Compliance Requirements Calls for transparency Increasing criticality of trustworthy data 5. Budget Constrains Need to do more with less, and need to justify expenditures

8. SAP NetWeaver enabling Smart Enterprises SAP Business Intelligence in Action Business Challenges for Smart Enterprises Meeting the Key Business Challenges

9. Challenge 1: Execution Not Aligned With Corporate Strategy Aligning Strategy with Execution requires: Common set of Metrics, KPI’s and Benchmarks Balanced Scorecards Solid and integrated planning framework  Corporate Performance Management “ Less than 10% of strategies effectively formulated are effectively executed.” Fortune

10. Challenge 2: Ineffective Decision Making Processes Improved Decision Making requires: Reliable, up-to-date and easily accessible information Context, Guidance, and Collaboration Information actionable and in consumable format Self Service and Information Democracy Source: SAP

11. Challenge 3: Increased Competitive- and Market Pressures “ If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself, but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy or yourself, you will succumb in every battle.” Sun Tsu, The Art of War, 500 B.C. Account Planning Opportunity discovery and exploitation requires: Predictive Analytics, Planning & Forecasting Analytics embedded into Applications Closing the Loop via Analytical Application  Smart people using smart applications

12. Challenge 4: Compliance Requirements Compliance and Corporate Governance calls for: Transparency, and single version of truth Trustworthy and auditable data (historic and current) Right-time reporting, exception notification and alerts  Reliability, completeness and transparency SAP Management of Internal Controls (MIC) Reporting, Section 404 “ The keys to meeting Sarbanes-Oxley requirements will be the timeliness of the reporting, as well as the validation that the system can detect and report the ‘material events’.” Gartner G2, 2004

13. Challenge 5: Budget Constrains Calls for IT budget justification and doing ‘more for less’ requires: Out-of-the-box templates and analytical applications Integration with applications, and openness for change Proven methodology and comprehensive support infrastructure  Buy versus build, from viable partner “ [ETL] processes ... can absorb up to 70% of the time spent on a typical DWH project.” DM Review, 3/01 “… it is clear that a single architecture will yield a better ROI, is more likely to come online faster, and is less likely to fail, undeniably.” Neil Raden, Analyst, 1/04

14. Meeting the 5 Key Business Challenges 2. Ineffective Decision Making Processes  Self Service and Information Democracy 1. Execution not aligned with Corporate Strategy  Corporate Performance Management 3. Increasing Competitive and Market Pressures  Smart people using smart applications 4. Compliance Requirements  Reliability, completeness and transparency 5. Budget Constrains  Buy from a strategic partner, don’t build A smart business requires a complete, end-to-end, reliable and open BI Platform.

15. SAP NetWeaver enabling Smart Enterprises SAP Business Intelligence in Action Business Challenges for Smart Enterprises Meeting the Key Business Challenges

16. The Business Intelligence Platform Architecture Source: Gartner (“Managing Corporate Performance – What you need to know”; Lee Geishecker & Frank Buytendijk, 4/04) Web Presentation/Portal/Mgmt Reporting Modeling and Optimization Consolidation Balanced Scorecard Budget Plan/Forecast Statutory Reporting Ad Hoc Query and Reporting DataMart DataMart DataMart DataMart Data Warehouse Integration Broker ERP/CRM/SCM/External Sources Business Proc. Management Content Management Knowledge Management Presentation CPM Applications BI Infrastructure Data Sources

17. SAP NETWEAVER 1 Platform Synchronized release dates 1 Foundation Web AS 6.40 1 Package Coherent installation process 1 Set of scenarios Integrated components All Apps Business Suite, partner solutions and xApps developed on NetWeaver ONE PLATFORM – ONE PRODUCT Open integration and application platform that enables change! SAP NetWeaver™ Composite Application Framework PEOPLE INTEGRATION Multi channel access Portal Collaboration INFORMATION INTEGRATION Bus. Intelligence Master Data Mgmt Knowledge Mgmt PROCESS INTEGRATION Integration Broker Business Process Mgmt APPLICATION PLATFORM J2EE DB and OS Abstraction ABAP Life Cycle Mgmt SAP delivers the complete, end-to-end, reliable and open BI Solution.

18. Accelerating NetWeaver Adoption with IT Practices Reports Implement BW Provide periodic operational reports to executives from multiple source Applications & Application Services Platform Integration Ability to Change your Business Value Collaboration Implement Collaboration Rooms Right-time data access Implement XI Information Delivery Implement Portal Low cost distribution of personalized reports and alerts to a wide audience Share documents; collaborate with colleagues for planning and resolution of business issues Reports for real-time data to complement the batch-oriented data access of analytic applications and operational reporting; Low High High

19. SAP NetWeaver ™ at Aventis

20. SAP NetWeaver ™ at Dow Corning

21. The SAP BI Advantage SAP NetWeaver delivers the complete, end-to-end, reliable and open BI solution, enabling the smart enterprise. Enabling of accurate, faster and actionable information Compliance with industry regulation thus mitigating business risks Connecting Corporate Goals, Objectives and Strategies to an individual contributor level Information Democracy and Self-Service Predictive analytics and smarter applications to grow the business Quick wins and faster Return on Investment