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Alternatives to SAP – building the e-business platform

Philip Carnelley

Software Research Director pxc@ovum.com

www.ovum.com

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TINA?

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Business pressures on the IT function

Do more with less

Reduce risk

Exploit innovationsSAP’s value proposition is to help with all this. How does it stack up?

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But …

… complexity and heterogeneity are increasing

ERP legacy~15 systems

SAP R/3~30 systems,

Versions 3.11 – 4.6B

E-Procurement 10 units

SAPMarketsEnterprise Buyer

Professional Edition

e-Sales

Collaborative Engineering

ERP non-SAP~25 systems,

different versions

Trading

Technicalsystems

Source: SAP

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What’s increasing complexity?New platforms, multi-channel delivery and web-centric applications

Need to link businesses across the supply chains : creating the ‘extended enterprise’

Organisations are trying to move to a services-oriented architecture

You’re trying to build an e-business platform

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What makes an e-business platform?

Pitched by the largest “platform” players… including SAP

Aggregation Co-ordination

Data

Transactions/functions

Userinteractions

Applicationprocesses

Workflow

EAI

Portal

ProcessManagement

ApplicationServer

Datareplication

Data accessmiddleware

ProcessManagement

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Fragmentation reigns …

0

50

100

200

250

Q401 Q102 Q202 Q302

Ascential

BEA

BusinessObjectsCognos

eXcelon

FileNET

Hummingbird

Interwoven

Mercator

Plumtree

SeeBeyond

Staffware

Stellent

Sybase (eBD)

TIBCO

Vitria

webMethods

Most independent integration-focused vendors are…

• Ambitious and aggressive

BUT...• Struggling

• Small

• Pathologically averse to making money from services

• “scalability” & market valuation is the focus

• the dot.com hangover at work

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How to decide if SAP can meet your needs for an e-business platform …

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I assume you have core ERP from SAP …

You might not want / be able to run mySAP/Netweaver as your e-business platform everywhere

For knowledge management across the heterogeneous environment you may need to take a neutral third-party offering

You may have several solutions today and be considering whether to consolidateKey issue: how to decide about the platform ?

But…

mySAPSCM

mySAPCRM

mySAPFIN

mySAPHR

mySAP PLM

mySAP Business Suite

SAP Web Application Server

People Integration: SAP Enterprise Portal, Collaboration, …

Information Integration: BI, KM, MDM, ...

Process Integration: XI, Business Process Mgmt.

mySAPSRM

SA

P N

etW

eave

rm

ySA

P S

olu

tio

ns

SAP R/3 Enterprise

Source: SAP

Hosted byHow IT is meeting the core business needs

1) Improving information access and worker

collaboration

2) Taking control of unstructured data

3) Better business monitoring and control

4) Managing business processes and transactions –

even across the stovepipes

Four classic IT initiatives today

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The Ovum Evaluations approach Capability assessment: • Build a model of an ideal world

offering based on need and possibility

• Examine the offerings and how they compare

Assess the robustness, potential and the future of the supplier

Characterise the offerings to show how they fit into real-life scenarios• Which scenarios correspond to

your own?

Inter-enterpriseProcess Integration

Web Enablement

ModellingManagement &

Monitoring

Throughput

This is a toolkit of techniques, not a regimented process

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Basic initiative 1 — Improving access and worker collaboration

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What we look for in Portals1) user interface

2) search and categorisation

3) structured information access

4) unstructured information access

5) data and content management

6) integration

7) workflow and task management

8) collaboration and groupware

9) portal component development

10)Portal management

These are fairly plug-and-playSupplier robustness is important

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The leading portal providers2002 Market share

IBM17%

Microsoft10%

Oracle10%

SAP8%

Others48%

People Soft7%

Source: Ovum

Breadth of portal scope

Framework ‘All in’

Market

position

Leaders

Emerging

SAP

Oracle

Hummingbird

Plumtree

Microsoft

CA

IBM

Sybase

Sun

Source: Ovum Evaluates Portal Software

Ovum estimates

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Issues to consider with SAP’s portalYou’re largely on your own

with interfacing to other enterprise applications • But a great interface to mySAP !

Drag&Relate technology is very impressive, but not magic • you need to have consistent

database definitions and it can be hard work to set up

Unix/J2EE support only recently arrived

So the usage scenario – SAP-centricity – is key

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Basic initiative 2 — Managing unstructured data

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Capability assessment of CM systems

Storage and control

Web authoring

and design

Document management

Application

development

Internationalisation

Knowledge

management

Web publication

Integration with other

business applications

Workflow support

A CMS can do all of this – but what do you need?

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The leading ECM providers

Documentum

Interwoven

Vignette

FileNet

BancTec Stellent

Source: Ovum

Breadth of ECM scope

Narrow Broad

Market

position

Leaders

Emerging

Hummingbird

IBM

Microsoft

Open Text

Source: Ovum Evaluates Content Management

0 50 100 150 200

IBM/Lotus* **

Microsoft*

Documentum

FileNet

IXOS

Interwoven

Stellent

Open Text

Hummingbird

Vignette

$million

* Ovum estimated revenues** IBM figures include revenues from both IBM DB2 Content Manager and Lotus Domino.Doc

Source: Ovum (Ovum Evaluates: Content Management/Market forecast)

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Issues to consider with SAP and content management

Provides basic storage and archiving of R/3 content only

Partners with IXOS, FileNET and Documentum to provide full back-end content management

Solution spread between basic R/3 features and portal features

Not intended to manage external content

Not designed for web publishingYou almost certainly will want to augment mySAP here

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Basic initiative 3 — Business monitoring and control

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What to look for in BIEnd-to-end BI process

Realtime data analysis

Analytical applications

Scalability

Globalisation

Today’s business needs support for:

TransactionData

Transform and load

Data warehouse& marts

Reporting and analysis

Actionable decisions

Timely information

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Approx revs from BI software

0 100 200 300 400 500 600 700

SAP AG

Peoplesoft

Teradata (NCR)

Sybase

Microsoft Corp

Oracle Corp

IBM

- - PLATFORM PROVIDERS - -

Ascential

Informatica

- - ETL - -

SPSS

HNC

- - DATA MINING - -

Actuate Software Corp

Crystal Decisions

- - ENTERPRISE REPORTING - -

SAS

Cognos Corp

Business Objects

- - OLAP - -

$ million

The leading BI providers

Source: e-Knowledge@Ovum

Emerging

Leaders

Breadth of BI scopeNiche Infrastructureprovider

Oracle

SAS

Informatica

Microsoft

BusinessObjects

Cognos

Brio

Hyperion

Ascential

Microstrategy

Acta

IBM

SAP

Marketposition

ETI

Source: Ovum Evaluates BI

Even within BI, the market’s fragmented Source: Ovum estimates

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Issues to consider with mySAP as a complete BI solutionHeavily focused on data within the SAP environment• Good (e.g. pre-configured templates) within this

• Specially tailored versions for some vertical industries

• Not good in a multi-vendor multi-database environment

Partner products needed to boost standard functionality, e.g.• Ascential for ETL

• Crystal Decisions for reporting

Advanced functions (data mining etc) also need partner solutionsThis is one of the easiest technical areas to ‘plug and play’

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Basic initiative 4 — Managing, monitoring and controlling business processes

Hosted byWhat processes are you looking to manage?

Ad hoc collaborative

Formal structured person to person

Pure application to application

business system integration

Transactional throughput

Co

mp

lexi

ty o

f p

roce

sses

HighLow

Lo

wH

igh

B2C

B2BMarketplaces

InternalApp2App

InternalP2P

EAI

Messaging/routing

(IT infrastructure)

Productionworkflow Business

management software

E-processtechnology

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The leading business process solution providers – four philosophies

BPM/EAI/Workflow

Pure plays(very small!) Bizapps providers

Platform providers

AseraSavvion

SAPOracleSiebel

IBMMicrosoftTibco

From four backgrounds …

TraditionalWorkflow providers

FilenetStaffware

Orchestrating process, people, applications

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Issues with to consider with SAP’s workflowIt’s designed to automate processes within SAP• Interfacing to other systems is on SAP’s terms

It’s not designed for ‘lite’ or ad-hoc processes

Also not designed for classical high-throughput, image –heavy document or case handling (eg in insurance)

But there is also the Exchange Infrastructure • Two solutions can be a bit confusing but ultimately v powerful

• Also plays in the EAI space – big overlap

Focused on creation of ‘composite applications’What really is your need?

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Issues to consider with SAP as a BPM provider

It’s becoming a strong point of the SAP platform

But how much do you need to create “composite

cross applications”?

How easy is it to fold in processes from other

systems – and indeed from your partner

companies?

This is often an area driven by your SI – how do

they want to play it?

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Is an EAI solution the answer?

developer tools

adapters and connectors• For functions, data

translation, process control

runtime quality of service

heterogeneity

synchronous and asynchronous connections

transactional integrity

ERP legacy~15 systems

SAP R/3~30 systems,

Versions 3.11 – 4.6B

E-Procurement 10 units

SAPMarketsEnterprise Buyer

Professional Edition

e-Sales

Collaborative Engineering

ERP non-SAP~25 systems,

different versions

Trading

Technicalsystems

EAIhub

EAI solutions offer:

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EAI market leaders

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

Mar

-01

May

-01

Jul-0

1

Sep-0

1

Nov-01

Jan-

02

Mar

-02

May

-02

Jul-0

2

Sep-0

2

Nov-02

IBM*

Microsoft*

webMethods

TIBCO*

SeeBeyond

Mercator

BEA*

Sun*

Sybase*

Vitria

Consolidating on a few

majors

• MS, IBM really taking

control

• A few tier 2 players

• A lot will fall away

Microsoft is the

company driving change

• .Net brings EAI to the

masses

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Issues with Netweaver as an EAI solutionNetweaver is not really intended to

address the classical EAI scenario• Though it includes much EAI capability, repository

based

It will probably change (and improve) a

lot over the next 12 months

So – what are you trying to achieve?

mySAPapplication

Other applications

Partnerapps

Market-places

etc

Customerapps

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So – what to do?

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Building the e-business platform

Can the SAP offering meet your needs within the mySAP context?

How strong is your need outside the SAP environment?

If you are looking elsewhere and need a third-party offering, will the SAP offering also help or just increase your costs?

Use the three evaluation techniques• Product capability; company capability; usage scenarios

You need to assess:

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Type conclusion statement hereGoing with the flow is not the only alternative – check out the others!