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EXTERNAL

EunSeok Bang & Alex Chua, SAP

Osler Fajardo, Mustard Seed

March 12th, 2019

Business One to Business By Design Suit in Box cloud solution for SMB

SMB Innovation Summit 2019

2Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

▪What's in it for a partner

▪SAP Business ByDesign – Positioning

▪SAP Business ByDesign – Where you can

benefit more

▪The Journey to Joint Success

▪B1 partner begins the journey and share

experience

Agenda

What's in it for a partner

4Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

You are a successful SAP Business One Partner.

What motivates you to attend this session?

To Scale

5Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The Partner Opportunity: a statistical view of the business

By Luis Murgia @SAP Innovation Day for partner 2018

6Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SMEs are asking why NOT Cloud

7Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

You are a successful SAP Business One Partner.

What motivates you to attend this session?

To Scale and/or To Survive

8Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Cloud journey with SAP SME ERP

BUILD

your own

SAP Business One

Cloud landscape

USE

a 3rd party

SAP Business One

Cloud Provider

USE

SAP Business

ByDesign

SAP HostingPartner Hosting

Position SAP Business ByDesign?

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Trusted by growing businesses around the world

Key Industries Served

Entities run Business

ByDesign

in 29industries and131Where Business ByDesign

is operational

Over 5100Extensive customer portfolio

countries

Professional Services Consumer Products

Discrete ManufacturingWholesale & Distribution

11Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

▪ Pure & mature Cloud/SaaS ERP solution-to-standard approach

▪ “We need it now” – rapid results

▪ A single platform (ERP, CRM, SRM, BI)

▪ 2-Tier Architecture Requirement

▪ Average implementation time 8 to 12 weeks for FIN + O2C + P2P

Why SMBs choose ByDesign

12Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Professional Services Super strong integration between project management, financials, purchasing

Consumer Products All core ERP capabilities are available, especially sell from stock, procure to pay and make to stock

Discrete Manufacturing Full ERP capabilities including MRP

Why SMBs in verticals choose ByDesign

Wholesale & DistributionAll core ERP capabilities are available, especially sell from stock, procure to pay and make to stock

13Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Our Focus

Project Centric Firms Make to Stock (MTS) Own Product Distributors

Management Consultants

IT Consultants

Marketing and Media

Production to stock

Delivery from stock

Standard products

Predefined variations

Non commodity Distributors

Combined Business Model

The Ideal industry focus clarifies the types of organizations who are most likely to adopt our solutions

14Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Ideal Client ProfileThe Ideal Customer Profile clarifies the types of buyers who are most likely to adopt our solutions.

Business

Characteristics

Technology

Characteristics

Buying

Characteristics

• Professional services (people/project

centric), wholesale distribution (low-

volume “captive”), consumer products,

high tech, public sector, simple

manufacturing.

• Ideally, minimum 150 employees (to get

minimum 5 users).

• Young organization.

• Growing quickly - think in new services,

products, or into new countries.

• Global footprint (either currently, or part

of growth trajectory).

• Changing business model – as a strategy

or imposed by external factors.

• Consuming cloud services.

• Small IT function for size of

business.

• Using QuickBooks, Exact or other

local mostly non-international

solution.

• Using other SAP offerings (e.g.,

Concur, Success Factors).

• Recently backed by VCs.

• Financial auditor won't audit any

longer.

• IPO/M&A

• Seeking funding (want to show

systems and information is in order).

• Looking for secure business platform.

• Sudden business model change (e.g.,

adding services to product business).

• New subsidiaries.

Use Caution!• EU Government, Law Firms, Pure

Process Industries, Insurance

• Brazil, Russia (tax laws)

• Building up IT

• Old Company/Flat Growth

• Slow Complex Manufacturing

• Not willing to accept standard

business processes

15Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Overall Customers Prefer SAP Business ByDesign

Built-in best

practices Suite in a box

Established in the

mid-market

Supported by SAP Built-in analytics Seamless two-tier

SAP Business ByDesign gives fast-growing, mid-market

businesses the Cloud ERP platform. The end to end business

suite unifies all core functions bringing together powerful

analytics and best business processes fine-tuned using SAP

expertise.

SAP Business By Design –

where you can benefit more

Knowledge is the beginning…

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Old freshman’s Personal view

Not SAP’s official statement

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Shared between SAP Business One & SAP Business ByDesign

Suit in a box

21Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Suit in a box

• Connect core functions and people

to time-tested best practices

• Get the foundation to scale and compete

without the complexity and cost

• Grow your business your way and

Turn growth potential into real results

An end-to-end cloud suite

for growing business

22Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Shared between SAP Business One & SAP Business ByDesign

Suit in a box

Built-in Analytics

23Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Built-in Analytics

Make informed actionable decisions quickly

– Deep insight across all functional areas

– Real time information

– Available where and when you need for maximum

impact

– “Out of the Box” integration to excel

Reports FormsDashboards

SAP HANA Analytics

MS Excel

24Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Built-in Analytics

Analytical Engine (OLAP)

Report (Views and Selections)

Mobile Reporting

Browser-Based Reports

Excel-Based Reporting/

FormattedPlanningReports

Special Purpose

Reports(e.g. KPIs)

UI Adapter (Reporting, Planning)

PlanningBusiness Objects

Analytical Data Sources

Application Business Objects

DATA REPOSITORIES (SAP HANA DB)

SAP HANA is used as database

Business data is exposed via

Business objects for actuals

Planning objects

Data sources provide analytical views

Model-driven approach

Analytical model based on business object model

Analytical processing is done via OLAP

Multiple UIs for all preferences

25Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Shared between SAP Business One & SAP Business ByDesign

Suit in a box

Built-in Analytics

True Single Source of Truth

Real real-time integration

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Single source of Truth & Real-time integration

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True Single source of Truth & Real Real-time integration

Other ERPs in the market: two data sources SAP’s Digital core (SAP Business ByDesign)

True single source

of Truth

SAP HANA DB

Transaction Analytics

No Aggregate

No ETL

ERP DB

Transactional

Analytics

DB

Analytical

Transaction Analytics

Aggregate

ETL

≠Real time data Old data

=

Always

Same data

High cost

& efforts

28Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Shared between SAP Business One & SAP Business ByDesign

Suit in a box

Built-in Analytics

True Single Source of Truth

Real real-time integration

Pattern-based UI

29Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Pattern-based UI

Work Center

View

Worklist

Business

Document

overview

OIF

QAF

30Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Shared between SAP Business One & SAP Business ByDesign

Suit in a box

Built-in Analytics

True Single Source of Truth

Real real-time integration

Pattern-based UI

Extension w/o coding

31Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Extension w/o coding

32Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Shared between SAP Business One & SAP Business ByDesign

Suit in a box

Built-in Analytics

True Single Source of Truth

Real real-time integration

Pattern-based UI

Extension w/o coding

Extensible via open API

33Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Extensible via open API

34Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Better from SAP Business ByDesign

Suit in a box

Built-in Analytics

True Single Source of Truth

Real real-time integration

Pattern-based UI

Extension w/o coding

Extensible via open API

Pure SaaS

35Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Pure SaaS

Quarterly updates

Automatic product updates

deliver new features

Cutting edge ERP innovation

New break-through functionality

keeping your data safe

Comprehensive approach to

protect our customers data

SAP Public Cloud ERP

Hosted, operated and backed

by SAP

36Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Better from SAP Business ByDesign

Suit in a box

Built-in Analytics

True Single Source of Truth

Real real-time integration

Pattern-based UI

Extension w/o coding

Extensible via open API

Pure SaaS

Best-practice Process

37Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Best-practice Process

38Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Better from SAP Business ByDesign

Suit in a box

Built-in Analytics

True Single Source of Truth

Real real-time integration

Pattern-based UI

Extension w/o coding

Extensible via open API

Pure SaaS

Best-practice Process

Single instance

39Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Single instance with different localization within

one tenant

▪ Multi-plant/operation

▪ Multi-national rollout

▪ Departmental structure

▪ Complex financials

▪ Global supply chains

▪ Built-on integration with other SAP products

Single instance

Unified Organizational Structure

Company

Almika

Business Residence

Company

Innovat

Sales Unit

Business Residence

Holding

(…)

Business Residence / Sales Org

Sales Org / Sales Unit

Function

Definition

Function & Definition

Organization

40Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Better from SAP Business ByDesign

Suit in a box

Built-in Analytics

True Single Source of Truth

Real real-time integration

Pattern-based UI

Extension w/o coding

Extensible via open API

Pure SaaS

Best-practice Process

Single instance

Role based task

creation/execution

41Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Production Execution Process automation in production

Confirm Production Task, Automated Close of

Production Lot

Confirm Production

Task

Close Production

Lot

Worker

1 2 4

Production Manager

Supply

Planning Production Control

SupplyPlanner

3

ProductionManager

Production Control

Worker

MDROMass Order

Creation Run

MDROMass Order

Release Run

MDRO

Planning Runs

Release Production Proposal, Create

Production Request

Release Production 5Request, Create

Production Order

Release Production Order, Create

Production Tasks

Execution / Production

Control

Production Control

Production Manager

Automated Release of Production Proposal, Automated Create & Release of Production Request,

Automated Create & Release of Production Order

1 2

MDROMass Lot

Closure Run

BC SettingImmediate Production

Order Creation

Including dispatching

production tasks to designated

task folders and triggering

supply to production

BC SettingImmediate Production

Order Release

BC SettingImmediate Production

Lot Close

Example

42Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Better from SAP Business ByDesign

Suit in a box

Built-in Analytics

True Single Source of Truth

Real real-time integration

Pattern-based UI

Extension w/o coding

Extensible via open API

Pure SaaS

Best-practice Process

Single instance

Clear segregation of

User role

Deeper functionality

43Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Key Highlights:

CRM

1. Sophiscated invoicing – Service invoicing variation, Project

invoicing

2. Rebate management

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1. Project variation - Overhead cost project, Direct cost project,

Multi-customer project

2. Project revenue recognition variation

3. Mobile apps – Project to go, Project cockpit

4. Project invoicing

5. Project resource planning

Key Highlights:

Project

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1. Transport Zone and Lane

2. Logistics variation - Lean and Sophiscated

3. Quality inspection

4. BOM/BOO, Product Model, ECO, Product Specification

5. Resource Load Leveling

6. Inventory replenishment/removal

7. Intercompany logistics, 3 PL

8. Actual costing

Key Highlights:

SCM

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1. Multi-Ledger

2. Management Accounting

3. Revenue types and Accrual options

4. Closing cockpit

5. Profit center/sgement reporting variation

6. IFRS compliance

Key Highlights:

Financial

47Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Better from SAP Business One

Suit in a box

Built-in Analytics

True Single Source of Truth

Real real-time integration

Pattern-based UI

Extension w/o coding

Extensible via open API

OP & Private Cloud

Mature extensibility

Handle Many line items

Micro-Vertical

VSE

48Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Summary

Suit in a box

Built-in Analytics

True Single Source of Truth

Real real-time integration

Pattern-based UI

Extension w/o coding

Extensible via open API

OP & Private Cloud

Mature extensibility

Handle Many line items

Micro-Vertical

VSE

Pure SaaS

Best-practice Process

Single instance

Clear segregation of

User role

Deeper functionality

The Journey to Joint Success

50Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The Journey to Joint Success

Why become a Business ByDesign Partner

Now?Demand for Cloud ERP solutions is growing at 35% YoY.

Drive more revenue with a robust SDK that supports extensions, vertical solutions, and country localizations.

ByDesign is SAP’s preferred solution for the Mid-Market.

Extensive set of lead generation campaigns, including cost effective social marketing tools.

We can get your marketing, sales, and pre-Sales team up and running quickly with extensive enablement.

ByDesign is built for scale with support of 20 users to 10,000 users. You can deliver scale and capabilities like no other.

Out perform competition with market-leading value proposition.

ByDesign is SAP’s top selling Public Cloud ERP solution.

Our sales process is fastercompared to other ERP products.

ByDesign is built for rapid implementation and faster customer accumulation.

51Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The Journey to Joint Success

Why focus on SAP Business ByDesign?Partner quotes and experiences (1/2)

“More revenues”

• ByD dayrate higher than “ABAP”

• Execute more/multipleprojects

• Partner margin on subscription!

“More profit!”

• Quicker cashflows by fastergolives

• “SAP Cloud Profit”programme

• Easier accessiblemarkets

“New business model”

• Turn IP into addons andaddins

• Business Advisor(Roadmap)

• Localizations in SAP

“Better visibility”

• SAP marketingcampaigns

• Social mediapresence

• LeveragePartnerEdge

“Better image!”

• Rapid & succesfulGoLives

• Hugemomentum– Cloudis hot!

• Young talentmagnet

“More complete offering”

• ByD = R/3 + BW+ CRM + SRM + SCM

• Documentation andmaterials

• eLearning andcollaboration

52Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The Journey to Joint Success

Why focus on SAP Business ByDesign?Partner quotes and experiences (2/2)

“Less risks”

• Immediate project start instead costly waiting

• SLA is taken care of by SAP

• SAP as a global Top20 QualityBrand

• SAP to SAP integration

“Less investments needed”

• No need for our own Datacenter(SAP

executes this underSLA

• No need to establish, maintain procedures

(Backup, DisasterRecovery)

• Quick onboarding biz specialists into

ByD/SAP consultants

• Documentation

“Lower Operational costs”

• Our staff can execute projects 24/7

• System is always available

• Upgrades executed by SAP

“New focus on new topics!”

• Subscription selling is key

• Think on renewal and upsellopportunities

• Customer Orientation (instead of Customer friendliness)

• Innovation through Standardization

• Growth from B1 intoByDesign

• No “burden of the past”anymore

• New competition requires newapproach

• We are seen as early adoptor and innovator!

“Better quality

of our delivery”

• Continuous improvement

cycle

• Trust in SAP SLA’s

and Qualitygates

• 365/24/7 globalsupport

“Improved

Innovationcycle

”• ByD Roadmap

communication

• Leverage other SAP

Cloud solutions

• Systemopenness

53Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The Journey to Joint Success

How SAP Supports New Partners Dedicated resources supporting partner’s success

Pre-built Marketing Campaigns with SAP Digital Marketing Platform -

Co-funding of demand-generation activities to maximize the opportunity

Partner First: SME segment covered by partners working hand-in-hand with

SAP sales drives your business growth

First class SAP PartnerEdge partner program.

Comprehensive Sales, Pre-Sales and Consultant Enablement – at no

additional cost (details in following slides)

Best practice partner profit transformation workshops

Support for ISVs wanting to build IP

54Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

How Partner’s Make MoneyMany more recurring revenues

1

2

3

Sell❑ Referral (Year 1)

❑ Cloud Choice Profit

❑ Cloud Choice Discount

Service

Development❑ Develop One Off Applications

❑ Packaged Solution Extensions

❑ Embedded PaaS

❑ Design/scoping Services

❑ Implementation Services

❑ Value Realisation

❑ Business Consulting

One Off Revenue

Recurring Revenue

The Journey to Joint Success

55Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The Journey to Joint Success

What SAP Expects from a Partner

Focus on SME market segment and cloud solutions

Willingness and ability to invest in:

Creating an SME (cloud) offering

Building a dedicated SME SAP practice

Market and sell SAP solutions

All of the above formalized in a mutually agreed business plan

56Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The Journey to Joint Success

Typical organizational set up

Independent BU

Sales*Implementation/Presales/Scoping

Marketing

services**

Evolve with volume

Independent BU

Sales*Implementation/

Scoping

Presales*Adaptation, extension,

development, IP

packaging

Marketing**Customers

success

management

Adaptation, extension,

development

*Only for relevant GTM

** Responsibility varies according to GTM

57Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

With You Every Step of the Way!

Building References

Winning First Deals

Marketing & Sales Efforts

Activation and Enablement

Partner Contract Signature

Compliance Check

Business Plan

The Journey to Joint Success

B1 partner begins the journey and share

experience – Mustard Seed

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60Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Why we decided to be a

SAP ByDesign Partner?

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EXPAND STRENGTHEN

GROW INCREASE

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Customer Relationship Management

- managing marketing, sales, services

Project Management- real-time project monitoring and collaboration

Real-time Analytics- make informed decisions with analytics

Cloud Platform- manage infrastructure without complexity

Strengthen Solution Offerings

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Increase Revenue

Generates cross selling activities

Promotes customer loyaltyBuilds recurring

revenue business

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Grow With Our Customers

Starter

Start-up

Maximum of 5 users

Trading, Distribution

Manufacturing, Construction, Multinational Companies, Group of Companies

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Expand Industry Offerings

MANUFACTURING CONSTRUCTION AND ENGINEERING

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Helping mid-market businesses to scale and compete without the complexity and cost

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Cloud is unavoidable

▪Get ready for Cloud Journey:

– Learn SAP Business ByDesign

– What to position when

– Build a business plan and look for a practice lead

Call to Action for Partners

68Confidential: Released for Partners© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Questions?

Thank you.

Contact information:

EunSeok Bang

eun.seok.bang@sap.com

Alex Chua

alex.chua@sap.com

Osler Fajardo, Mustard Seed

osler@mseedsystems.com

Gamification Challenge Code

BAN8h1l

By entering this SAP Breakout Session

code you will be granted 10 points

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