SAP NetWeaver:Enabling the Smart Enterprise

Lothar SchubertSAP Labs Palo Alto, LLClothar.schubert@sap.com

SAP 2004, 2

Sustainable, Profitable Growth

THE WINNING STRATEGY

Refocus on GROWTHas the economic re-bound has arrived

Drive PROFITABILITY of growthas you keep improving margins

Ensure SUSTAINABILITY of growthas you innovate

SAP 2004, 3

The Winning Strategy

GROWTH THROUGH INNOVATION

Relationshipexcellence

Product/serviceexcellence

Operationalexcellence

Sustainable,Profitable

Growth

Sustainable,Profitable

Growth

Inno-vation

Inno-vation

Inno-vation

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Departmental Perspectives

“not a keycustomer”

“it’s just one missed sale”

“see & wait”

“will be backin inventory”

???

“extra effortcosts $$$”

SAP 2004, 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

ComplianceRequirements

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Integrated Management Processes

Corporate Strategy1. Increase quality of service2. Drive transparency3. Invest in innovation4. …

Strategic Planning Scenario simulation Cash-Flow Forecast

Management Goal setting Alignment of interest Goal measurement

Perform. Management Operational planning Process optimization Operational execution

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5 Key Business Challenges

2. Ineffective Decision Making ProcessesDecisions delayed, or made on ‘gut feel’ onlyKey stakeholders not involvedSolid information only available to small ‘elite’

1. Execution not aligned with Corporate StrategyCorporate strategy not communicated clearlyIndividual objectives not aligned with strategyPoor measurement, and no corrective actions

3. Increasing Competitive and Market PressuresLack of insight into markets and trendsOpportunities frequently missed

4. Compliance RequirementsCalls for transparencyIncreasing criticality of trustworthy data

5. Budget ConstrainsNeed to do more with less, and need to justify expenditures

SAP NetWeaver enabling Smart Enterprises

SAP Business Intelligence in Action

Business Challenges for Smart Enterprises

Meeting the Key Business Challenges

SAP 2004, 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

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Improved Decision Making requires: Reliable, up-to-date and easily accessible information Context, Guidance, and Collaboration Information actionable and in consumable formatSelf Service and Information Democracy

Challenge 2: Ineffective Decision Making Processes

Source: SAP

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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

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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

SAP 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

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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 transparency5. Budget Constrains

Buy from a strategic partner, don’t build

A smart business requires a complete, end-to-end, reliable and open BI Platform.

SAP NetWeaver enabling Smart Enterprises

SAP Business Intelligence in Action

Business Challenges for Smart Enterprises

Meeting the Key Business Challenges

SAP 2004, 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

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DataMart DataMart DataMart DataMart

Data Warehouse

Integration Broker

ERP/CRM/SCM/External Sources

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CPMApplications

BIInfrastructure

DataSources

SAP 2004, 17

1 PlatformSynchronized release dates

1 FoundationWeb AS 6.40

1 PackageCoherent installation process

1 Set of scenariosIntegrated components

All AppsBusiness Suite, partner solutions and xApps developed on NetWeaver

SAP NETWEAVER

ONE PLATFORM – ONE PRODUCT

SAP NetWeaver™

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PEOPLE INTEGRATION

Multi channel access

Portal Collaboration

INFORMATION INTEGRATION

Bus. Intelligence

Master Data Mgmt

Knowledge Mgmt

PROCESS INTEGRATION

Integration Broker

BusinessProcess Mgmt

APPLICATION PLATFORM

J2EE

DB and OS Abstraction

ABAP

Life C

ycle Mg

mt

Open integration and applicationplatform that enables change!

SAP delivers the complete, end-to-end, reliable and open BI Solution.

SAP 2004, 18

Accelerating NetWeaver Adoption with IT Practices

ReportsImplement BWProvide periodic operational reports to executives from multiple source

Applications & Application Services Platform Integration

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Value Collaboration

Implement Collaboration Rooms

Right-time data accessImplement XI

Information DeliveryImplement 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

SAP 2004, 19

SAP NetWeaver™ at Aventis

SAP 2004, 20

SAP NetWeaver™ at Dow Corning

SAP 2004, 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