designing it for business innovation

Designing ITfor Business Innovation

Peter GrafEVP SAP Labs, LLC

© SAP AG 2007, SAP’s BPP Spotlight/Ori Inbar / 2

Enterprise SOA Delivered, Mass Adoption Underway

“Expect 75%of customers

in upgradeby mid-2008.”

“Over 53% view SAP NetWeaver

as their strategic platform

by 2010.”

SAP NetWeaver Platform Adoption

7000+ new productive systems in the last year

SAP ERP 6.0 Adoption

225

2,574

Apr'06 Mar'07

5,881

13,068

Apr'06 Mar'07

2000+ new productive systems in the last year


Open Integration Platform for Heterogeneous Landscapes

The only platform that brings .NET and Java together

Standards Leadership: UN/CEFACT, JEE5, BPEL4People, WS*…

8,500+ productive customers using SAP NetWeaver to integrate non-SAPRichest integration of SAP ERP with PeopleSoft HR, Siebel CRM


From Operational Efficiency to Competitive Differentiation

CompetitiveDifferentiation

Business Process Reengineering

+ ERP

Operational Efficiency

Business Network Transformation+

Business Process Platform

1990s 2000s 2010s


Business Network Transformation

Business Network has becomethe primary source of new differentiation


Business NetworkTransformation Initiatives Company Business Benefits

SAP survey with 175 customers

The Business Value of a Business Process Platform

Post-merger Integration in 2-8 months

5 years ahead of mandate

Reduced days outstanding23%Cost containment

8%Compliance

5%Mergers and acquisitions

7x growth in permits / year

Grow 2x industry average

50% less time to market

Reduced costs and found alternate revenue source

14%Business process innovation

10%New markets and channels

23%Managing relationships

New products or services10%

Best Practice Examples of IT Providing Value to the Business


Empowered UsersBest practice business processes across 26 industry solutionsDelivered in the right User context

Align business strategy with IT executionConsolidate on a singleecosystem of solutions based on a common platform

Optimized IT

Harmonization of information across business processesBuilt-in analytics for performance and governance

Trusted Information

The IT Value of a Business Process Platform

Adaptable ProcessesPre-integrated with standard processesComposition / BPM by using productized service-oriented business process steps


CancelInvoicing Send

NotificationDelete from

database

“Cancel Order”

CancelShipment

AdjustPlanning

Rollback inventory Notify

Suppliers

Natively Integrated Industry Processes on 1 Open Platform

“Cancel Order”

Elevating SOA into a Common Language of Business:Ready-to-Run, Co-Defined Enterprise Services, e.g. Cancel Order

CancelInvoicing Send

NotificationDelete from

database

CancelShipment

AdjustPlanning

Rollback inventory Notify

Suppliers



Configurable,industry-specific

best practices accessible through Enterprise Services for standardization and efficiency

Composite applications orchestrate Enterprise

Services into new processes for continuous

innovationOpen repository of Enterprise Service

Definitions for expandability

One open platformto build, run andintegrate process components forlower TCO

Benefits of a Business Process Platform


Consumer = Financial Service

Customer

ProfessionalServices Company

Logistic Service Provider

CardProcessing

Services

Retail

CardFinancialInstitution = Bank


Customer


Logistic Service Provider

CardProcessing

Services

Retail

CardFinancialInstitution = Bank


ReceiveCustomer

Order At POS Online / Store

Verify Customer Contact Data

Check CreditRating

Open FinanceAccount

Account Processing

ReceivablesAccounting


Customer

Retail


FinancialInstitution = Bank

Example: Retailer Offers Branded Financial Services (Store Credit Card)


What are we delivering with SAP NetWeaver in 2007

g yg y

Trusted Information

Empowered Users

Optimize IT

Adaptable Processes

Web 2.0Collaborative Portal, Business Client Mobile & Voice

Standards: Java EE 5 and WS-*ES Messaging, BPM, Events & BAMProductivity and Performance

Blended BI & Enterprise Search Information Integration & FederationInformation Quality and SecurityPerformance & Automated Syndication (MDM)

ES Repository for SOA GovernanceSOA Testing, Acceleration and OptimizationSimplified IT landscape management

Lots of innovation in the platform coming your way!


Faster Innovation Without Disruption for ERP

2006/2007

Enhancement Packages based evolution

pioneered by ERP

SAP NetWeaver

Composite ApplicationsBusiness innovation with enterprise service bundles

Easy-to-consumeImplementation in less than two weeks

EhP EhP EhP

ERP

Enterprise SOA by Evolution

EhP = Enhancement Packages


Faster Innovation Without Disruption for the Business Suite

2006/2007Enhancement Packages

based evolution pioneered by ERP

2007/2008Enhancement Packages

based evolution extended to the Suite

SAP NetWeaver

Composite Applications

EhP EhP EhP EhP EhP EhP

ERP

PLMSCMSRMCRM

Enterprise SOA by Evolution

New composition environmentSAP Business Suite based on SAP NetWeaver– Service-enabled– Stable core– Switch framework

EhP = Enhancement Packages


Bundles of Enterprise Services Mid-Year Shipment 2007 – PREVIEW*

EAMAsset ConfigurationMaintenance ProcessingMaintenance Service Collaboration

Logistics ExecutionInventory LookupRadio Frequency Identification Processes (SCM)Handling of Business Events (SCM)Yard and Storage Mngt (SCM)Customer Collaboration for the Supply Chain (SCM)Supply Network and Production Planning Processes (SCM)

Trading IndustriesTrade & Commodity ManagementDemand Management v2

Order to CashCustomer Fact Sheet v2Electronic Bill Presentment and Payment v2Order to CashBank Relationship ManagementExternal cash desk

Hire to RetireAbsence Employee Time Request (Duet)Benefits and Compensation (Duet) Organizational Management (Duet)Personnel Admin. (Duet)Travel Management

ManufacturingBatch Traceability & AnalyticsIntegration of MES v2Integration of Quality Management Systems v2Preview them** in www.sdn.sap.com Enterprise SOA Explore Enterprise Services ( ES Workplace / ES Wiki)*Disclaimer: SAP reserves the right to change the ES bundles listed without prior notice.**Some of the bundles listed on this page can be previewed in the ES Wiki.

Mid-Year Shipments 2007Mid-Year Shipments 2007

AVAILABLE SOONin July ’ / Aug ‘07

Service for CustomerCustomer Service ExecutionInternal Service Request (Duet)Advanced Meter Infrastructure (Utilities)

Idea to ProductTechnical Document Management Connectivity v2

http://www.sdn.sap.com/


Bundles of Enterprise Services End-Year Shipment 2007 – PREVIEW*

Logistics ExecutionIntegration with external Warehouse Mngmnt SystemIntegration with Transport Management SystemsSupply Chain Operations & Execution in Oil&Gas

Order to CashOrder to Cash v2 (incl. B2B)Quote to Order for configured ProductsFinancial Shared Service Center – Intercompany ProcessingReal Estate Reservation

ManufacturingBatch Traceability & Analytics v2

Public SectorPublic Sector Budget ManagementReserve and Commit BudgetMulti-channel tax & revenue management

* Disclaimer: As the roll-in for the winter edition is not completely finalized, the list of enterprise service bundles shown here is subject to change by SAP without prior notice. Not all Scenarios and Industries are listed here.

End-Year Shipments 2007End-Year Shipments 2007

PLANNED RELEASEin Dec 2007

Service for CustomerCustomer Service Execution v2

Procure to PayDocument BuilderProcure to Pay (incl. B2B)Outsourced ManufacturingSupplier Collaboration in the Supply Chain v2

Enterprise Asset MgmntAsset Configuration v2Maintenance Processing v2Maintenance Service Collaboration v2Project System

Hire to RetireHCM Master DataHCM Time ManagementHCM Org ManagementHCM Learning Solution

Banking & InsuranceAccounting IntegrationCollection & Disbursement for InsuranceCredentials (ICM) for InsuranceFS Business Partner Maintenance v2Insurance Claims Management v2ISV Integration with Analytical BankingLoans Management Bus. Operations v2

Trading IndustriesMerchandise & Assortment Planning Int. Chargeback ManagementPOS IntegrationRetail Unified Demand ForecastTrade & Commodity Management v2Trade Price Specif. Contract

HealthcarePatient AdministrationResource Planning and SchedulingMed. Activities, Patient Billing & Invoice Medical Documentation and Coding Medication and Materials ManagementCollaborative Health NetworkSupply Chain Healthcare Providers

And more ….Advertising Management (Media)Compliance relevant data exchange –eLogbook (Defense)Information Integr. Systems (GIS) (Defense)Environment Health and Safety (EH&S) ServicesIntegration of Learning Management SystemsSubscription Management (Media)


Leveraging Enterprise SOA to Deliver Continuous Innovation

BPP-based SAP Business Suite launched

BPP-based SAP ERP launched

SAP ERP innovation without disruption

5-1-2 maintenance (includesSAP ERP)

SAP Business Suite innovation without disruption

New application components become available

Enterprise SOAEstablished

Continuous InnovationWithout Business Disruption

2006 2007 2008 2012. . . 2009


User Groups

Tradition of Co-Operation and Co-Innovation

Communities of Innovation

Expand Our Business Network Along Three Dimensions

Partners

SAP SOLUTION

EXTENSIONS

EndorsedBusinessSolutions

ChannelResellerPartner

SoftwareSolutionsPartner

ServicesPartner

http://images.google.com/imgres?imgurl=http://www.webtownusa.com/images/logos/018_Dell_logo_150x150.gif&imgrefurl=http://www.webtownusa.com/&h=150&w=150&sz=2&tbnid=nOvMxf_a79oJ:&tbnh=90&tbnw=90&hl=en&prev=/images%3Fq%3Ddell%2Blogo%26hl%3Den%26lr%3D&oi=imagesr&start=2

http://www.avaya.com/

http://www.rsasecurity.com/company/news/kit/logos/downloads/RSA_Security_logo.ZIP


Getting Ready for Business Network Transformation

Think big, start small

Don't under-estimate the skills challenge

Partner with us in an open and frequent opinion exchange

Together with us, get ready for Business Network Transformation!

Together we can manage this transition much smarter


Thank you!

Technology Tour Sponsors

Designing ITfor Business Innovation

Peter GrafEVP SAP Labs, LLC

designing it for business innovation

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