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SAP 2003: Your Technology and Business Roadmap

Jim ShepherdSenior Vice PresidentAMR Research

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Agenda

SAP’s Business Strategy

SAP’s Product Strategy

SAP’s Technology Direction

What Should You Worry About ?

Maximizing The Value of Your SAP

Investment

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SAP Snapshot

7.4B € in FY02 Revenues

• 56% from Maintenance and Services

FY03 Expectation: Flat Revenue, Improved Profits

19,300 Customers

50,000+ Installations – 120+ Countries

23 Industry Solutions

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SAP’s Business StrategyAccount Control- “The Reliable Business

Partner”

Growth – “Influence A Greater Share of IT Spending”

Customer Lifecycle Management -

“ROI - SAP Delivers Value”

Services, Maintenance, & Add-ons

New Markets and Channels

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SAP Business Strategy:Become Your “Trusted Partner”

InfrastructureConsulting

InfrastructureConsulting

Infrastr.SoftwareInfrastr.Software

TechnicalSupport

TechnicalSupport

InfrastructureSupport

InfrastructureSupport

Business SoftwareBusiness Software

Business ConsultingBusiness Consulting

System SupportSystem Support

Out-sourcing

Out-sourcing

System IntegrationSystem

Integration

System IntegrationSystem

Integration

System Integration*

System Integration*

Discover & Evaluate -> Implement -> Operate

HardwareOS, DB, ...HardwareOS, DB, ...

Strategic Consulting

Application Layer

Middleware Layer

IT Layer

Source: SAP AG

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SAP Business Strategy:“Extended Range of Services”

New Maintenance Offerings

Architecture Planning

Custom Development

Consulting

System Integration

Operations Planning & Optimization

Hosting / Outsourcing

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SAP Business Strategy:New Markets and Channels

Source: SAP AG

SAP Direct Sales

Vertical Resellers

Business One CentersSales/Service Partners

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Product Strategy: All Things For All Buyers

SAP NetWeaver

SAP for <Industry>

SAP Enterprise Portal

SAP Master Data Mgmt.

SAP Business Intelligence

SAP Exchange Infrastructure

mySAP Business Suite

mySAP ERP

mySAP CRM

mySAP SCM

...

SAP xApps

SAP xApp Resource & Program Management

SAP xApp Mergers & Acquisitions

...

SAP Smart BusinessSolutions

mySAP All-in-One

SAP Business One

SAP PackagedSolutions

Service Management for <Industry>

Financial Insights for <Industry>

...

SAP Mobile Business

SAP Web AS

SAP for Aerospace & Defense

SAP for Automotive

...

Source: SAP AG

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Current Application Strategy

The Ever Expanding mySAP Business Suite

Vertical Industry Solutions

ERP Extensions

R/3 Enterprise or MySAP ERP ?

Mid-market : All-in-One and Business One

The xApps (Cross-Applications) Framework

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The Ever Expanding mySAP Business Suite

Business Partners World

Inte

rnet

Extr

an

et

Enterprise Group

ENTERPRISE

COLLABORATION

Advanced Supply Chain Planning

Customer Relationship Mgmt

Business Warehousing

Intr

an

et

R/3 Logistics

R/3 Accounting

R/3 HR

R/3 Fulfillment

...

B2B ProcurementStrategic Enterprise Management

Strategic Enterprise Management

KnowledgeWarehouse

Comprehensive e-Business Solutions

Industry-Add-ons

Portals

Marketplaces

Supply Chain Hubs

Collaborative Engineering

E-Recruiting

Electronic Bill Presentment & Payment

Collaborative Forecasting

Source: SAP AG

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SAP Product Strategy: Scalability

mySAP.comHeadquarters

Factory

Distributor

SAP R/3 Enterprise

SAP Business One

Sales Subsidiary

SAP All-in-One

Exchange Infrastructure

Source: SAP AG

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xApps

xApps arePackaged Composite Applications.

They deliver newend-to-endbusinessprocesses,

that snap-on to an existingIT environment.

New, snap on cross-functional business processNew, snap on cross-functional business process

Existing applicationsExisting applicationsand data sourcesand data sources

xAppxApp

Source: SAP AG

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Source: SAP AG

Functional Transactions (Hindsight)

Bu

sin

ess

Vie

ws,

Eve

nts

(C

onte

xt &

Insi

ght)

SCMSCM CRMCRMPLMPLMHRHR Finan-cials

Finan-cials LegacyLegacy

Desk-top/

OfficeSupport

Desk-top/

OfficeSupport

SRMSRM

SAP xAppEmployee Productivity

SAP xAppResource and Program Mgmt

SAP xAppProduct Definition

SAP xAppMergers and Acquisitions

Announced xApps

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R/3 Enterprise

SAP Web Application Server 6.20Replaces Basis Server

Provides J2EE and ABAP SupportCommon Foundation for all mySAP.com Components

SAP R/3 EnterpriseExtensionFor SCM

SAP R/3 EnterpriseExtension

For FIN

SAP R/3 EnterpriseExtension

For HR

SAP R/3 EnterpriseExtensionFor Travel

SAP R/3 EnterpriseExtensionFor PLM

SAP R/3 Enterprise Core 4.7All Existing R/3 FunctionalityFuture Changes limited to:

• Legal Changes• Defect Fixes• Performance Enhancements

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R/3 Enterprise Rollout

New “Ramp-up” Release Process

200 Customers in Controlled Release

1500 Copies Shipped Since January

Reports From Customers Are Positive

InternalCustomerRelease

RestrictedShipments

UnrestrictedShipments

7/02 12/02

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mySAP SCM

mySAP PLM

mySAP SRM

mySAP CRM

mySAP ERPFinancials

Human ResourcesCorporate Services

Operations

Maintenance & Quality

Inventory & Production

Sal

es

Ord

er

&

Del

ive

ry M

an

ag

em

en

t

Pu

rch

ase

Ord

er

Ma

na

ge

me

nt

SAP NETWEAVER

mySAP Business Suite

Source: SAP AG

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SAP NetWeaver

CorporateServices

OperationsManagement

Human Resources

Financials

Employee RelationshipManagement

Employee LifecycleManagement

Employee TransactionManagement

Purchase OrderManagement

Maintenance& Quality

ProductionManagement

InventoryManagement

Corporate Real Estate

Management

Incentive & CommissionsManagement

Travel Management

Application PlatformProcess IntegrationInformation IntegrationPeople Integration

mySAP ERP – Edition 2003

Analytics Financial AnalyticsWorkforce Analytics

Operations Analytics

Strategic EnterpriseManagement

Delivery Management

Sales OrderManagemen

t

FinancialAccounting

Financial Supply Chain Management

ManagementAccounting

Source: SAP AG

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mySAP SCM

mySAP CRM

+

+

mySAP Business Suite Customer can buy and deploy

mySAP Business Suite

+mySAP SCM

mySAP CRM+

R/3 Enter-prise

SAP NetWeaver

Quickstep Packages

+

mySAP ERP Customer can buy and deploy mySAP

ERP

Combining mySAP ERP & Solutions Customer can combine mySAP ERP

with mySAP Solutions

Combining R/3E & Parts Customer can combine existing R/3

Installations with Solutions, SAP NetWeaver (also parts of it like e.g. Portal or BI) and with Quickstep packages

SAP NetWeaver

mySAPBusiness Suite

SAP NetWeaver

mySAPERP

SAP NetWeaver

mySAPERP

+

+

+

Quickstep Packages

+

+

1

2

3

4

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Source: SAP AG

New technology foundation of MySAP products

Centralized collection of SAP technologies• Application Servers• UI Management• Integration Framework• Security• Business Process Mgmnt• Data Warehousing• Portal Framework• Etc.

Neutral positioning toward IBM WebSphere and Microsoft .NET

.NET

Web-Sphere

…

DB and OS Abstraction

People Integration

Com

posi

te A

pplic

ati

on F

ram

ew

ork

Process IntegrationIntegration

BrokerBusiness Process

Management

Information IntegrationBusiness

IntelligenceKnowledge

Management

Life C

ycle

Managem

en

t

Portal Collaboration

J2EE ABAP

Application Platform

Multi-Channel Access

SAP NetWeaver™SAP NetWeaver™

DB and OS Abstraction

Master Data Management

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What Should You Be Worrying About ?

Instance Consolidation

New mySAP.com Functionality

• PLM, APO, Portals, CRM, etc.

Release Strategy & Expectations

• R/3 Enterprise, MySAP ERP, MySAP Business Suite ?

Extended Deployment

• Internally

• Externally

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Maximizing Your Investment

Competency Center -- Business Process Improvement

Not Help Desk!

Continuous Training & Education

Enterprise Performance Management (EPM)

Network Theory -- A system becomes more valuable

as it touches more users

Any ERP System Needs Better Public Relations