Intel ConfidentialIntel Confidential

SAP® Channel Management

Ramya RajChannel SAP

®Technical Integration Lead

Information Technology11/09/2007

2

Legal Notices

This presentation is for informational purposes only. Intel®MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.

BunnyPeople, Celeron, Celeron Inside, Centrino, Centrino logo, Core Inside, FlashFile, i960, InstantIP, Intel, Intel®logo, Intel386, Intel486, Intel740, IntelDX2, IntelDX4, IntelSX2, Intel®Core, Intel®Inside, Intel®Inside logo, Intel. Leap ahead., Intel. Leap ahead. logo, Intel®NetBurst, Intel®NetMerge, Intel®NetStructure, Intel®SingleDriver, Intel®SpeedStep, Intel®StrataFlash, Intel®Viiv, Intel®vPro, Intel®XScale, IPLink, Itanium, Itanium Inside, MCS, MMX, Oplus, OverDrive, PDCharm, Pentium, Pentium Inside, skoool, Sound Mark, The Journey Inside, VTune, Xeon, and Xeon Inside are trademarks or registered trademarks of Intel®Corporation or its subsidiaries in the United States and other countries.

*Other names and brands may be claimed as the property of others.

Copyright © 2007, Intel®Corporation. All rights reserved.Last Updated: Aug 28, 2006

3

Agenda

SAP® CRM at Intel®

Channel Management at Intel®

ConclusionsFuture Channel Management solutions

4

SAP® CRM at Intel®

Channel SolutionsChannel ManagementTelesales – Integrated Channel Account management and Campaign ManagementDesign Win Exchange – Integrate and automate Channel Opportunities through RNET

Marketing SolutionsPartner Marketing Program (MDF) - Integrated Campaign management

Master Data:Customer management

5

SAP® CRM Technologies

Biz Suite: – SAP® CRM 5.0– Integrated SAP R/3 environment

NetWeaver components: – Business Warehouse– XI– Portal

Server:– Intel

®Itanium

®2 multi-processor (4)

– MS Windows Advanced Server 2003– MS SQL Server 2005

6

SAP® Channel Management at Intel®

Target Customers:Channel customers - ‘Authorized’

Distributors Over 200+ users

Key Channel Customer Benefits:Faster responseReduce customer workload Data accessibility

7

SAP® Channel Management at Intel®

Internal Customers: Finance, OperationsOver 100+ users

Key Intel® Benefits:Standardized Channel processes worldwideImplementation of a scalable system infrastructure Improved data quality and accurate tracking of Channel inventory.Reduced total cost of ownership by using out of the box SAP functionality

8

SAP Channel Management at Intel®

Implemented SAP CHM Worldwide Completed 2 successful quarter close with no issuesAbout 12K/hr Channel transactions are currently being processed in CHMImplementation team consisted of Project manager, SAP consultants, Systems analysts, developers, QA and Geo reps

9

Landscape

Pre-CHM:– Channel processes fully customized in SAP R/3 3.1G– Customized integration to upstream and downstream

applications– System could not be upgraded due to huge customizations

CHM:– SAP

®Channel Management Out of the box solution

– SAP® CRM 5.0 integrated with SAP R/3

10

Channel Management Overview

IntelIntel®®DistributorsDistributors

End Customers End Customers (Resellers)(Resellers)

11

Channel Management Overview

Channel Management is an High Tech solution within CRM ApplicationCHM provides near-real time visibility to

Distributor’s InventoryIntel® has implemented all the key channel

processes Sell-inPoint of Sale (aka) Sell-through or ResaleClaims management and Bill-upInventory Receipts and ReconciliationPrice Protection Distributor to Distributor transfer

12

Channel Management Terms & Concepts

Channel Partner:Unique customer master that has relationship to related sold-to i.e., branches of a distributorDistributor inventory is tracked at the Channel Partner level

Price Bucket:Distributor inventory tracked based on a Channel Partner, Product and price

Single Single Sales Sales area.area.

Customer, Customer, Product, Product,

PricePrice

Everything Everything inside is:inside is:

13

CHM Master Data

System of record for all master data is SAP® R/3– Material (Product)– Price

Master data is enabled real time through the CRM MiddlewareSystem of record for Customer (Distributor) and Customer hierarchy is CRM– SAP Customer hierarchy functionality allows Channel data

to be rolled up by customer/sales area/geography

SAP® R/3ProductPrice

CRM CustomerCustomer Hierarchy

MiddlewareMiddleware

14

CHM Sell-in Process

Channel Channel CustomerCustomer

Sell In is the process of updating distributor inventory in CHM due to Channel customer purchase/returns.

Sell In transaction updates the Price Bucket.

IntelIntel®® ShipmentsShipments

ReturnsReturns

15

CHM Distributor Price Authorization

DPA is captured as ‘Ship & Debit Contracts’ in CHMNon-SAP tool interfaces with SAP to create contracts automatically in SAPContracts contain customer, product, price and end customer information

Channel Channel CustomerCustomer

IntelIntel®®

DPADPA

DPA RequestDPA Request

16

CHM Resale Process

Resale transaction is the distributor reporting the sales to their End customers.Distributors reports returns from the End customer also as a resale transaction.In CHM, resale transactions are validated and Price bucket is updated to reflect impacts to distributor inventory

Channel Channel CustomerCustomer

EndEndCustomerCustomerIntelIntel

ResaleResale SaleSale

ReturnReturn

17

CHM Claims and Bill-up Process

Claims transaction is the distributor request for DPA credit with the resale transaction.CHM does validation of claims against DPA and issues credit to the distributor.Bill-up is the debit issued to the distributor for a reported End customer return against a paid claim.

Channel Channel CustomerCustomerIntelIntel

®®

Resale/ClaimsResale/Claims SaleSale

Claim Claim Credits/BillCredits/Bill--up up

DebitDebit

EndEndCustomerCustomer

ReturnReturn

18

CHM Inventory Receipt/Reconciliation

Inventory Receipt (IR) is the inventory position reported by the distributor.Calculated Inventory is the inventory position as determined by CHM.Channel Inventory Reconciliation (CIR) is the process of reconciling calculated inventory (CI) and Inventory Receipt (IR).– CIR supports adjustment and synchronization of CI with IR– CIR ensures accurate tracking of Channel Inventory

DistributorsDistributorsIntelIntel®®

IRIR

19

CHM Price Protection

Price Protection process issues credit against distributor’s inventory to re-value the Channel inventory at the new price.In CHM, Price Protection values the Price bucket inventory at the new price.

DistributorsDistributorsIntelIntel®®

PP CreditPP Credit

20

Channel Financial Close

Currently supported as a non-SAP solution using the data from SAP® CHMNon-SAP solution utilizes CHM data to complete Financial close

21

CHM Key Take Aways

SAP® CHM framework has huge flexibility for adding client specific requirementsCHM is integrated to SAP® R/3 environment for

master data and billings.CHM has most of the key channel processes

except for Financial closeExcellent partnership with SAP

®to improve CHM

performance by enabling parallel processing for CHM transactions. Currently there is very limited CHM BI solution.

Building a custom reporting solution for BI was a huge effort.

22

Lessons Learned

Active business involvement in all the project phases Iterative development lifecycleBig bang implementation with CHM solution Ramp-up customer helped us influence key

capabilities ie., Bill-up, cancellation functionality but had to work early quality issues

23

Future for Channel Solutions at Intel

Enhance out of the box CHM BI solution Enhance CHM to be system of record for Channel Financial close.Enhance current CHM functionality

In CRM 5.0, Distributor to Distributor solution currently has limited functionality In CRM 5.0, Reverse Price protection revalues the price

bucket but debit processing is not supported out of the box

Intel®Confidential – Internal Only