cloud computing & saa s, sap by design

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confidential Build Business On The Cloud, drive profits on the Ground Webinar Rohit Madhur - Director, SAP Business By Design Tarun Gulati - Business Manager, SAP Business By Design Rakesh Prasad - Solution Advisor, SAP Business By Design 30th September 2009

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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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Page 1: Cloud Computing & Saa S, Sap By Design

confidential

Build Business On The Cloud, drive profits on the Ground

Webinar

Rohit Madhur - Director, SAP Business By Design

Tarun Gulati - Business Manager, SAP Business By Design

Rakesh Prasad - Solution Advisor, SAP Business By Design

30th September 2009

Page 2: Cloud Computing & Saa S, Sap By Design

confidential© SAP 2008 / Page 2

1. Opportunities in Cloud Computing: An evangelist approach1.1. SaaS Market Opportunity1.2. Economic uncertainty1.3. Benefits of SaaS1.4. Key considerations for evaluating SaaS products

2. 4 Steps to a Best-Run-Business2.1. Key Obstacles to Growth2.2. Create and Track KPI’s2.3. The 4 Steps to a Best-Run-Business

3. SAP strengthens product portfolio with Business ByDesign3.1. Today’s Reality3.2. SME Product portfolio & positioning of SAP Business By Design3.3. SAP Business ByDesign

Agenda

Page 3: Cloud Computing & Saa S, Sap By Design

confidential

SaaS Market Opportunity

Page 4: Cloud Computing & Saa S, Sap By Design

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Global Economic Uncertainty

Economic Environment

Revenue, Income

COGS, Margins

Cash flow, Liquidity

Slowing demand(spending cut-back, customers

postponing purchases)

Rising costs(inflation, energy/commodity

prices, healthcare costs…)

Reduced credit(tougher lending standards,

declining loan/line of credits)

Measurable Impact on Your Business

Lack of access to funds

Reduced cash flow

Rising inflation risks

High market volatility

Wave of consolidations

Government re-regulation

Declining consumer optimism

Translating into…

Source: - NFIB Small Business Economic Trends, October 2008

- The Conference Board Mid-Market CEO Challenge, 2007- Collateral Damage, The Boston Consulting Group, Oct 2008

Page 5: Cloud Computing & Saa S, Sap By Design

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Benefits of SaaS

Time to Value • Up and running in as little as 6 weeks, see ROI quicker

Affordable & Predictable

• No equipment or capital, ~30% lower cost of ownership• Usage-based pricing means you control the costs• No need for costly infrastructure and excess capacity

Access to Latest Technology

• Enhancements delivered and managed seamlessly by provider – no worry about upgrades breaking systems

Configuration not

Customization

• Maturity of applications makes configuration possible• Simpler for business, with lower cost (no custom programming)• Based on Best Practices

Fewer Technical Resources

• Provider manages the application, hosts in secure, state-of-the-art data center which may otherwise be beyond reach

• Provider offers help, support and training

Focus • By outsourcing, company is free to focus on core competencies; onerous aspects of IT managed by the vendor who built it

Page 6: Cloud Computing & Saa S, Sap By Design

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Key Considerations for evaluating SaaS products

Form an evaluation group that includes operations, Finance and IT

Expect the evaluation to take some time - understanding and evaluation of expected results

Understand the vendor's strategy and approach (i.e. point solution or are they offering an end-to-end solution)

Is the vendor proven and stable or a relative newcomer

Determine how their strategy fits with both your short- and long-term needs

Page 7: Cloud Computing & Saa S, Sap By Design

confidential© SAP 2008 / Page 7

1. Opportunities in Cloud Computing: An evangelist approach1.1. SaaS Market Opportunity1.2. Economic uncertainty1.3. Benefits of SaaS1.4. Key considerations for evaluating SaaS products

2. 4 Steps to a Best-Run-Business2.1. Key Obstacles to Growth2.2. Create and Track KPI’s2.3. The 4 Steps to a Best-Run-Business

3. SAP strengthens product portfolio with Business ByDesign3.1. Today’s Reality3.2. SME Product portfolio & positioning of SAP Business By Design3.3. SAP Business ByDesign

Agenda

Page 8: Cloud Computing & Saa S, Sap By Design

confidential

Key Obstacles to Growth: Survey Results

Major Impediments to Growth

Reducing contract prices is a big obstacle to growth for 57% of SME’s in Asia Pacific

Rising cost of materials and services is another major impediment to growth, as accepted by 47% SME’s

High labor cost vis-à-vis competitors in other counties

Tight availability of Financing

Page 9: Cloud Computing & Saa S, Sap By Design

confidential© SAP 2008 / Page 9

KPI Driven Business Management

Possible Objectives

Facilitate communication with customers Ensure customer satisfaction and loyalty

Cu

sto

me

r S

up

po

rt &

S

erv

ice

s

KPI‘s needed

Customer retention Time to resolution for problems Revenue per service order

Possible Objectives

Support continued business profitability Shorten lead-to-close cycle Expand the customer base

Sa

les

& M

ark

eti

ng KPI‘s needed

Marketing campaign effectiveness Sales revenue, pipeline and margins Sales force productivity

Possible Objectives

Manage organizational change efficiently Integrate HR business processes into other parts of the

business

HR

& P

eo

ple

KPI‘s needed

Number of employees and employee turnover Labor costs as a percentage of sales Revenue per employee

Page 10: Cloud Computing & Saa S, Sap By Design

confidential© SAP 2008 / Page 10

KPI Driven Business Management

Possible Objectives

Increase accounting transparency Automate manual tasks to enable faster closes Maximize the efficiency of working capital Ensure compliance with local and international regulations

Fin

an

ce

KPI‘s needed

Cash flow and capital funding Profitability Total company value and worth

Possible Objectives

Minimize Project delays Maintain project profitability Increase the quality of service delivered

Ser

vice

s S

up

ply

ch

ain

KPI‘s needed

Productivity Service levels Service delivery time

Page 11: Cloud Computing & Saa S, Sap By Design

confidential© SAP 2008 / Page 11

The 4 Steps to a Best-Run-Business

Anticipate Change

Build a flexible business model to manage and embrace changes that will invariable come

Quickly rollout new processes or adapt existing Business processes

Set your business to throttle up or down to meet rapidly changing and unpredictable customer requirements

360 degree visibility to make faster, smarter decisions

Faster decision making

Integrate different versions of truth into one system

Make decisions on facts, not on emotions or spotty communication

Increased productivity throughout the organization

Best Run Business Optimum utilization of resources Visibility to pinpoint inefficiencies and

capability to transform them into competitive advantage

Optimized operations and best practices extended to entire value chain

Minimize risk and Liability Seamlessly manage new regulatory

compliance Create KPI’s and consistently track

progress Embed metrics and reports into your

end-to-end processes Tighter control on financial

performance, product/service quality, delivery standards, SLA’s

Control your cost structure, end-to-end

Embed process controls to efficiently schedule resources

Automate routine tasks to strip out inefficiencies

Setup a collaborative, optimized team across your company

Page 12: Cloud Computing & Saa S, Sap By Design

confidential© SAP 2008 / Page 12

1. Opportunities in Cloud Computing: An evangelist approach1.1. SaaS Market Opportunity1.2. Economic uncertainty1.3. Benefits of SaaS1.4. Key considerations for evaluating SaaS products

2. 4 Steps to a Best-Run-Business2.1. Key Obstacles to Growth2.2. Create and Track KPI’s2.3. The 4 Steps to a Best-Run-Business

3. SAP strengthens product portfolio with Business ByDesign3.1. Today’s Reality3.2. SME Product portfolio & positioning of SAP Business By Design3.3. SAP Business ByDesign

Agenda

Page 13: Cloud Computing & Saa S, Sap By Design

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Today’s Reality for Many Midsize Companies:Point solutions, manual processes, spreadsheets

■ Need to improve profits■ Need to grow without disruptions■ Need to do it with limited cashflow and risks

Page 14: Cloud Computing & Saa S, Sap By Design

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There Have Traditionally Been CompromisesIn deploying business solutions for midsize companies

Solution Depth

Adaptability

Implementation / Deployment

High Value

Solution Breadth

Cost of Ownership

IT Complexity

Affordability

Page 15: Cloud Computing & Saa S, Sap By Design

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Situation Today Mix of Point “Solutions”

Mix of outdated systems, point “solutions” and spreadsheets

The New StandardSAP Business ByDesign

The affordable and most complete on-demand solution for midsize companies

SAP Business ByDesignNew solution – Design goal

Addressing the Needs of an Underserved Market

Page 16: Cloud Computing & Saa S, Sap By Design

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For companies who need business software but don’t want to support a large IT backbone

• 10~100 employees• On-premise deployment• Traditional licensing• Go live in 6~8 weeks • General business functionality • 550+ add-on solutions, many

industry specific• Available in 20 languages and

40 country-specific versions

• 100 to 500 employees• SaaS deployment• Monthly subscription• Go live in 4~8 weeks • General business functionality

based on best practices• Available only in US, Germany,

France, United Kingdom,

China and India (2009)

• 100~2,500 employees• On-premise deployment• Traditional licensing• Go live in 8~16 weeks• 660+ industry-specific solutions• Available in 50+ countries

A comprehensive, integrated industry solution to power your

business end-to-end

For midsize companies with industry needs that want a

scalable foundation

A single integrated solution to manage their entire business

For small businesses who have outgrown their packaged accounting-only solutions

The best of SAP, delivered on-demand

NEW Fast-Start Program• Pre-tested, preinstalled solutions

• Predictable project scope

• Go live in 8~12 weeks

Where does SAP Business ByDesign fits in SAP’s SME Portfolio?

Page 17: Cloud Computing & Saa S, Sap By Design

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SAP Business ByDesignAffordable, Predictable, Easy to Adopt

On-demand Always up-to-date software, managed by SAP experts

in world class data centers

Built in service and support Remote monitoring with automated support

User training and education Self-guided, self paced, context sensitive built-in

learning

Page 18: Cloud Computing & Saa S, Sap By Design

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SAP Business ByDesign – Solution Map

Supply Chain Management Demand Planning Supply Planning Supply Control Outbound Logistics Control Execution Inbound Logistics Outbound Logistics Internal Logistics Physical Inventory Quality Assurance Production Control Analytics

Supplier Relationship Management Planning Key Performance Indicators Product Portfolio Supplier Base Purchase Requests & Orders Goods & Services Receipts Supplier Invoicing Sourcing & Contracting Self Service – Shopping Analytics

Human Resources Planning Key Performance Indicators Personnel Administration Time Administration Resource Management Self Service Analytics

Customer Relationship Management Products & Services Pricing Sales Planning Key Performance Indicators Account Management Marketing New Business Sales Orders Service Entitlements Service Desk Service Orders Field Services & Repair Customer Invoicing Analytics

Project Management Planning Key Performance Indicators Project Management Project Team Change Management Document Center Project Time & Expenses Cost & Revenue, Project Profitability Customer Invoicing & Analytics

Financial Management Financial Planning Key Performance Indicators General Ledger Receivables Payables Payment Management Cash & Liquidity Management Travel & Expenses Fixed Assets Cost & Revenue Inventory Valuation Tax Management Audits Analytics

Page 19: Cloud Computing & Saa S, Sap By Design

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SAP Business ByDesignBenefits

IT

IT

ITIT IT

ITIT IT

IT

ITIT

Predictable, Affordable,

Manageable IT

360 DegreeSolution

Easy-to-Use and Adapt

1 2 3

Page 20: Cloud Computing & Saa S, Sap By Design

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You can also write us on:-

Rohit Madhur – [email protected]

Tarun Gulati – [email protected]

Rakesh Prasad – [email protected]

ANSWERSQuestions &

http://www.sme.sap.com