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Enabling Business Processes with SAP ERPFoundation for Your Success in the Midmarket

Tommy TeohServices Director, ObTech Asia Pacific Sdn Bhd

SAP Business All-in-One

The Best Fit to Build a Best Run Company

ERP Investment Challenges

ObTech VertiCore

Agenda

How Can You Be A “Best-Run” Business?

How Can You Be A “Best-Run” Business?

How Can You Be A “Best-Run” Business?

SAP: Where Transparency Meets EfficiencySolutions Built To Fit Your Needs, Designed To Help You Grow

ERP Investment ChallengesCommon pain points faced by most organisations

�Don’t differentiate between software and implementation service

�Have small IT budget

�Need quick & tangible benefits

�Demand high quality solution individually tailored to their needs

�Require industry- or regional-specific solutions

�Have limited project resources

�Are worried about long and painful implementations

�Need a solution that can grow with their business

Typical ERP Solution Options3 most common options and approaches

SAP Business All-in-One… more than “just” software

StandardSystem

With SAP

Best Practices

Traditional

project

Adjustments

within project

Standard

System

Adjustments

within project

SAP Best

Practices

Introduction to SAP Best Practices

SAP Best Practices are packages providing preconfigured business processes and project accelerators to streamline customer implementations.

Time and CostSavings

Evolution of SAP Best Practices

Preconfigured Systems

Configuration Transport

Test Catalog for Master Data

Fast Installation Fast Installation –– little Flexibilitylittle Flexibility

(New Customers, (New Customers,

empty Systems)empty Systems)

Industry specific Best Practices

Technical Add-on

Master Data replicated (Backend)

Role based approach

More Flexibility, Adaptation to More Flexibility, Adaptation to

existing (Backend)existing (Backend)--SystemsSystems

Cross Industry

Best Practices

End 2000

Building BlocksTechnical Add-on

Role based approach

High Flexibility, Adaptation to High Flexibility, Adaptation to

existing (R/3) Solutionsexisting (R/3) Solutions

Best Practices for

mySAP All-in-One

Since Dec 2002

How to combine Usability and Re-usability?

New Technical Design

Separation Content – Technical Framework

OneStep Installation

High Flexibility, Fast InstallationHigh Flexibility, Fast Installation

SAP Best

Practices

2005

First Delivery Q4/1997

First Prototypes1995/1996

First Customer Project 1998

Current Global SAP Best Practices Portfolio Expanded versions to meet your industry and geographic needs

• SAP ERP

• SAP NetWeaver

• SAP CRM

• SAP GRC Access

Control

• SAP GRC GTS

• SAP NetWeaver

Business

Intelligence

• SAP Supply Chain

Management

• SAP NetWeaver

Portal

• … And more

Industries Cross Industries Country Baseline Versions

• Automotive

• Chemicals

• Consumer Products

• Discrete Manufacturing

• Engineering, Construction &

Operations

• Metallindustrie

• High Tech

• Industrial Machinery

& Components

• Logistic Service Providers

• Media

• Mining

• Pharmaceuticals

• Primary Steel

• Professional Services

• Public Sector

• Retail

• Wholesale Distribution

• Utilities

• Baseline Package

• CRM

• Business Intelligence

• Supply Chain Management

• Enterprise Portals

• Human Capital Management

• Global Risk and Compliance

• Corporate Performance

Management

• International Accounting

Standards

• Argentina

• Australia

• Austria

• Belgium

• Brazil

• Canada

• Chile

• China

• Colombia

• Croatia

• Czech Rep.

• GCC countries

• Denmark

• Finland

• France

• Germany

• Greece

• Hong Kong

• Hungary

• India

• Italy

• Japan

• Korea

• Malaysia

• Mexico

• The Netherlands

• New Zealand

• Norway

• Peru

• Philippines

• Poland

• Portugal

• Romania

• Russia

• Serbia & Mn.

• Singapore

• Slovak Republic

• Slovenia

• South Africa

• Spain

• Sweden

• Switzerland

• Thailand

• Turkey

• U.K.

• United States

• Venezuela

Components

How ObTech delivers “clarity” to your ERP Investment?

“Design to Order”

“Reusable components”

“Off-the-shelf

Investment

Time

“Repeatable Processes”

52+ Weeks1992 - 1999

24 – 52 Weeks2000 - 2003

12 – 16 Weeks2004 - current

Leverage the industry experience from 1000’s of implementations

Adjustments within project

StandardSystem

StandardSystem

StandardSystem

Adjustments within project

SAP BestPractices

Adjustments within project

SAP BestPractices

TemplateSpecification

2009

Making SAP Affordable and Cost-effective

Partner

SAP All-in-One Packaging

SALES

& MARKETING

SAP ERPIndustry Functionality Built-in

SAP Best PracticesIndustry Processes Built-in

Implementation PackageImplementation Experience Built-in

ASAP Focus ApproachSafe, Predictable, Affordable

Customer

ObTech VertiCore Template SolutionQualified SAP Business All-in-One packages

SAP

Core Solution

SAP

SAP Business

Suite

SAP Best

Practices

Solution Development

ObTech VertiCore PackagesBuilt on foundation of SAP Business All-in-One solutions

SAP Business All-in-One solutions combine SAP Business Suite, SAP Best Practices and Partner services into a single, affordable solution that enables a fast time to benefit.

SAP and BusinessPartners

SAP All-in-One with

Template PackagedSolution

Packaged

Solution

Purchasing Manufacturing SettlementFinancial

Mgmt

Order to

Cash

Available to

PromiseFulfillment

Cost MgmtFinancial

Mgmt

Human

Resource

PurchasingPurchasing ManufacturingManufacturing SettlementSettlementFinancial

Mgmt

Financial

Mgmt

Order to

Cash

Order to

Cash

Available to

Promise

Available to

PromiseFulfillmentFulfillment

Cost MgmtCost MgmtFinancial

Mgmt

Financial

Mgmt

Human

Resource

Human

Resource

Customer

Customer

SpecificConfiguration

Individualized

Customer

Solution

PurchasingPurchasingManufacturingManufacturingSettlementSettlementFinancial

Mgmt

Financial

Mgmt

Order to

Cash

Order to

Cash

Available to

Promise

Available to

PromiseFulfillmentFulfillment

Cost MgmtCost MgmtFinancial

Mgmt

Financial

Mgmt

Human

Resource

Human

Resource

Demand& SupplyPlanning

ChannelMgmt

Global Risk &

Compliance

Benefits

Administration

Demand& SupplyPlanning

Demand& SupplyPlanning

ChannelMgmt

ChannelMgmt

Global Risk &

Compliance

Global Risk &

Compliance

Benefits

Administration

Benefits

Administration

Implementation

ObTech VertiCore PackagesSolid foundation for the SAP Business All-in-One solutions

for

Consumer Products

Goods

for High Tech-

Semiconductor

for Industrial Machinery &

Components

for High Tech-Medical Devices

VertiCore High-Tech Semiconductor Template Predefined scenarios readily enabled by the template

� Forecast-to-Stock

� Order-to-Cash

� Procure-to-Pay

� Finance

� Controlling

� Service Management

� Quality Management

� Batch Management

� Engineering Change Management

� Integration Processes

VertiCore High-Tech Semiconductor Template Examples of Forecast-to-Stock Scenarios

Key Business Scenarios:

CTO – Production with Variant Config and Assembly ProcessingPFD11041

Make-To-Stock Production with Production VersionPFD11040

ECM for CTO ProductionPFD11039

PLM – Prototype DevelopmentPFD11038

Production Execution Rework Procured Or Manufactured PartsPFD11036

Production Execution Rework In-ProcessPFD11035

Sales and Operations PlanningPFD11034

Production Goods ReceiptPFD11033

Production Execution NormalPFD11030

Planning and MRP ExecutionPFD11029

Engineering Change ManagementPFD11028

VertiCore High-Tech Semiconductor Template Examples of Procure-to-Pay Scenarios

Key Business Scenarios:

Physical Inventory ProcessPFD10061

Scrap ProcessPFD10060

Stock Transfer ProcessPFD10059

Goods Issue ProcessPFD10058

Goods Receiving ProcessPFD10057

Free of Charge PurchasesPFD10056

Return to vendorPFD10055

Procurement Approval ProcessPFD10054

Procurement of general servicesPFD10053

Procurement of expense materialsPFD10052

Procurement of stock materialsPFD10051

Procurement of assetsPFD10050

RFQ, Vendor Quotations and Contract MaintenancePFD10049

VertiCore High-Tech Semiconductor Template Examples of Order-to-Cash Scenarios

Key Business Scenarios:

Order Fulfillment – Make-To-OrderPFD11002

Cross company Sales Order ProcessingPFD10045

Order Fulfillment – Customer ConsignmentPFD11001

Order Fulfillment – Configure-To-Order with Variant ConfigPFD11041

Cross company stock transferPFD10044

Customer returnsPFD10043

Credit/debit memo processingPFD10042

Free of Charge Samples OrderPFD10041

Free goods processingPFD10040

Order Fulfillment from Stock PFD10039

Customer Quotation and Contract Processing PFD10038

Credit Management PFD10037

� Extensive pre-

configuration to set up

a) the complete system

landscape

b) end-to-end business

scenarios

� Detailed documentation

on settings & processes

� Clear Installation

methodology:

comprehensible step-by-

step approach

Components

Time Risk

Pragmaticmethodology

Proven

pre-configuration

Extensive

documentation

SAP Best Practices

Cost

VertiCore Leverages on SAP Best PracticesAddressing 3 critical project pressure points

ObTech VertiCore with SAP Business All-in-One5 Key Benefits

Customer BenefitsReducing Implementation Timeline and Costs

� Rapid Time to Value

� Proven & ReliableSafe

� Lower CostsAffordable

� What you see is what you getPredictable

� Smooth Go-Live

� Flexible Incremental Approach ASAP Focus accelerates the implementation process saves time and money,

while minimizing risk and disruption to your business.

RE

TU

RN

ON

IN

VE

ST

ME

NT

Accelerated Implementation

Standard Solution

£

SAVINGS

TIME

AccelerateTime-to-Benefit

Shorter Payback

Time

Reduce InitialInvestments

“Efficiency is

doing better

what is already

being done”

Peter F. Drucker(American Educator & Writer)

Paradigm ShiftFrom “Engineer-to-Order” to “Assemble-to-Order”

In the traditional approach starts with a blank page:

� assumes that Blueprinting is a major activity (effort driver) inprojects

� designs the complete solution specifically for ONE customer

� means we accommodate all customer requirements in the first implementation step

Implementation

Guide

mySAPmySAP..comcomSAP SCM

SAP PLM

SAP

SRMSAP

CRM

SAP

ERP

SAP NetWeaver

The Traditional Approach – “ASK” Model

The Accelerated Approach – “TELL” Model

BC

sets

mySAPmySAP..comcomSAP SCM

SAP PLM

SAP

SRMSAP

CRM

SAP

ERP

SAP NetWeaver

BCsets

BC

sets

Documentsand

Configuration

ImplementationGuide

In the accelerated approach starts with a solution:

� Use preconfigured solution relevant to your industry with predefined documentation as accelerators to the implementation

� Align the current business processes to adopt best practices whenever possible

� Capture unique customer processes as “Delta” requirements need to be met

� Take incremental approach with defined implementation roadmap

Empties Update Order Types:

ZCBA, ZCBM, ZOR,

ZRE, ZRT, ZBV1, ZBV2, ZBV3, ZBV4

Empties Update Order Types:

ZCBA, ZCBM, ZOR,

ZRE, ZRT, ZBV1, ZBV2, ZBV3, ZBV4

/BEV1/EMLGBWDP

Holding

Filling

“Closing”

HoldingClearing

Holding

Ageing

Du

rin

g t

he

mo

nth

…

ZSD018ZSD018

ZSD014ZSD014

ZSD015ZSD015

Table: /BEV1/EMLGWDP (Empties Movement Account Customer)Q1 (+/-) – Delivery Qty

Q2 (-) – Return Qty

Q6 (+/-) – Balance

Q13 (+/-) – Difference Delivery vs Return = Q1 + Q2

Q16 (+/-) – New Balance = Q1 + Q2 + Q6

Table: /BEV1/EMLGWDP (Empties Movement Account Customer)Q1 (+/-) – Delivery Qty

Q2 (-) – Return Qty

Q6 (+/-) – Balance

Q13 (+/-) – Difference Delivery vs Return = Q1 + Q2

Q16 (+/-) – New Balance = Q1 + Q2 + Q6

ZEMMVTLOG

ZEMMVTCLR

ZEMMVTOPN

ZEMMVTAGE

NOTE: Actual Empties Update is at the point of billing document creation and existing billing cancellation

NOTE: Actual Empties Update is at the point of billing document creation and existing billing cancellation

End of month…A Rental Billing

Processing

Rental Billing

ProcessingB

NOTE: ZSD018 also able to generate “Opening” ZCBZ entries

NOTE: ZSD018 also able to generate “Opening” ZCBZ entries

/BEV1/

EMLGBSD

ZCBZ

Rental

Order

Rental

Billing

Advance

Rental

Clearing

VBRK

Print RentalInvoice

BSID

BSAD

ZSD006ZSD006

ZSD007ZSD007

ZSD008ZSD008

VF31VF31

ZSD_EMLOG

ZSD_EMLOG

RentalInvoices

Rental

InvoicesRental

Invoices

Printout

RentalInvoices

Rental

InvoicesRental

Invoices

Printout

/BEV1/EMLGBSD

/BEV1/

EMLGBWDP

A

Fir

st

week

of

new

mo

nth

…

B

B

Adopt and Extend from Best Practices

Leveraging on Best Practices configuration from Beverage industry and further extend to fit customer’s delta requirements…

Customer Delta Requirements

Today’s New Reality & Challenges The context in which businesses operate today

Economic

Volatility

Proliferation of

Global Regulation

Business Network

Transformation

Rising Consumer

Power

Sustainability

Challenging Aspects of Growth The Double-Edged Sword

2. Increasing product and technology portfolio size

� New product releases

� New technology platform

� Need service infrastructure

3. Increasing presence in global markets

� New competitors / suppliers / regulations

� Need local knowledge / business operations

visibility

5. Increasing pressure on financial resources

� Finance growth

� Manage and retain talent

� M&A, Joint Ventures

1. Increasing number of Customers

� New markets

� New geographies

� New business practices

4. Increasing operational complexity

� Higher volumes

� More suppliers

� New operating model

“Midsized Companies are nothing if not growth-

oriented.”

Economist Report“Thinking Big”

Source: Thinking big- Midsize companies and the challenges of growth, Economist Intelligence Unit

SAP Business All-in-One Solution Differentation

Adaptable

Easy to Use

Comprehensive

Predictable Cost of

Ownership

The Innovation of SAP All-in-One Solution

Adapt to Changing Compliance

Broader Analytical Insight

International Capabilities

Enhanced Configurability

Industry Experience built-in

Wider Business Process Coverage

Business Process PlatformSupports Extensibility

Pre-Configured Business Scenarios

Clear Enhancement Path

Implementation Tools and Methods

Guided Procedures

Contextual Help

New Intuitive User Interface

Role-based Navigation

Source: SAP Analysis of Industry Analyst Reports and Market Information

A Roadmap to Future Growth

“Deploy as you grow” approachto enrich your solution

Start with the SAP Business All-in-One Solution and meet your core business processes

Leverage your processes with further SAP ERP

capabilities

Enrich your processes with next generation offerings: e.g. SAP‘s Enterprise Service-Oriented Architecture (ESOA)

Start Fast & Low Cost - Grow Into a broader Solution Over Time

As your business Dictates

Seeing Your Way “Clear” in the New Reality

Gartner’s Top 10 Priorities in 2009Business and Technology

Source: Extracted from Gartner 2009 CIO Survey

Rank Top 10 Business Priorities Top 10 Technology Priorities

1 Business Process Improvement (4th year running) Business Intelligence

2 Reducing Enterprise Costs Enterprise Applications (ERP, CRM, Others)

3 Improving Enterprise Workforce Effectiveness Servers and Storage Technologies

4 Attracting and Retaining New Customers Legacy Application Modernization

5 Increasing the use of Information/Analytics Collaboration Technologies

6 Creating New Products/Services (Innovation) Networking, Voice and Data Communications

7 Targeting Customers and Markets more Effectively

Technical Infrastructure

8 Managing Change Initiatives Security Technologies

9 Expanding Current Customer Relationships Service-oriented Applications and Architecture

10 Expanding into New Markets and Geographies Document Management

CIOs expect to: “Invest in business intelligence applications and information consolidation in order to raise enterprise visibility and transparency, particularly around sales and operational performance. These investments are expected to pay extra dividends by responding to new regulatory and financial

reporting requirements.”

Thank you!