Realizing the Value of Enterprise SOADoug MerrittCorporate Officer and member of the Executive Council, head of Business User Development, SAP AG

Managed

Risk

Open Ecosystem

NetWeaver

SAP BUSINESS SUITE

Enhancement Packs

CUSTOMERNEEDS

Stability

Predictability

Openness

Flexibility

SOA ENABLED

Business User Applications

Stability Within Technology Evolution

Addressing the Needs of Our Customers

Business Suite Business SuiteSAP NetWeaver

Other Applications

Buying Centers

Information & Process Access

Performance Management Financial

Performance Mgmt.

Risk and Compliance IT

Compliance Financial

Compliance

Productivity Tools

Enterprise wide Strategy management

Enterprise wide Risk Management

COO

Operational Compliance

Operational Performance Mgmt.

CFO CIO

Significant ImpactsAnd significant recovery periods

Half of the companies require >1 yr toregain lost value, 22% never recover

Source: Deloitte, Disarming the Value Killers, 2005

22% 50%

22%

Recovery Period<= 1 year1 to 3 years

> 3 yearsNot recovered

6%

Source: Deloitte, Disarming the Value Killers, 2005

Nearly half of the Fortune 1000 lost >20% of stock value

28% 20%

24% 28%

Value Loss0-15%15-20%

20-25%>25%

Integrity and Innovation in a Networked Enterprise

Strategy to ExecutionRisk Adjusted Performance

Real-time Business InsightLean Compliant Operations

Unified Financial Management Across the Network

CIOCFOCOO

SAP Enterprise SOA Enabled Solutions

Business Suite Business SuiteSAP NetWeaver

Other Applications

Buying Centers

Information Worker

Corporate Performance Management

Governance, Risk, and

Compliance

Duet Enterprise Search

Mobile Adobe Forms Analytics Dashboard

Voice

Strategy ManagementSpend Analytics

Supply Chain RiskCustomer Analytics

Enterprise Risk Management

Access ControlsCisco Composite

Global Trade ServicesProcess Controls

Environ. Compliance

Profitability Mgmt.Budgeting / Planning

Consolidation

Right Data – Right NowInformation Worker

Information Work Extends to New Roles and Processes

Information Work

Core Business Processes

Adjacent Business Processes

Existing Apps

Business User Organization Focus

Task Work

SAP Business

Suite

Information Worker Applications

Organizational Performance Apps

SAP Solutions for Information WorkersA portfolio of solutions to enable your workforce

Duet xApp Mobile Time and Travel

xApp Mobile Sales

Collaborative Portal

Enterprise SearchxApp Analytics

Desktop Mobile Web

Interactive Forms by Adobe

Interactive Forms by Adobe

Enterprise Wide TransparencyGovernance Risk and Compliance

Addressing the Needs of Our Customers

Business Suite Business SuiteSAP NetWeaver

Other Applications

Buying Centers

Information & Process Access

Performance Management Financial

Performance Mgmt.

Risk and Compliance IT

Compliance Financial

Compliance

Productivity Tools

Enterprise wide Strategy management

Enterprise wide Risk Management

COO

Operational Compliance

Operational Performance Mgmt.

CFO CIO

Fragmentation Limits Ability to Manage the Extended Enterprise

Supply Chain Customers & Channel

Overcome Fragmentation: Gain Transparency with a Holistic Approach

Supply chain Customers and channel

Board and audit committeeEvidence for decisions and

directivesCompliance and risk

officeIntegrated risk analysis

Executives and managersIncreased confidence in business results

IT operationsSecure IT infrastructure

ProcurementAntiterrorist

trade practices

Finance Global financial reporting compliance

Human resources Environment, health, and safety compliance

Sales and serviceBalancedcredit profile

SALARIES

Building Risk IneleganceEnterprise Wide Risk Management

Risks Management Steps Process automation for the virtuous cycle

Actionable, role-based

dashboards and alerts

Establish risk appetite

and thresholds

Collaborate and aggregate across the

enterprise

Balance cost of risk avoidance

and opportunity

SAP GRC Risk ManagementProviding the framework for an integrated approach to ERM

Business Process Platform

SAP GRC Risk Management

GRC Repository

Global Trade Environment / Safety Supply Risk xApp Others…Access / Process

External Provider

KRIs / ContentSources

Risk Adjusted PerformanceIntegrated Performance Management

Strategize & Prioritize

Plan & Execute

Report & Monitor

Model & Optimize

Strategy Management

Business Planning

Profitability Management

Business Consolidation

Corporate performance management – an iterative processIntegrated strategy, financial planning and profitability analysis

Strategize & Prioritize with Strong Communication

Fishbone diagrams highlightcritical inter-dependencies thatmay cause initiatives to fail

Strategize &

Prioritize

Strategy Maps allow for visualization of strategy in a manner that can be tailored to any end-user

Plan & Execute with the Right Tools for Business Users

Intuitive Web 2.0 interface with Intelligent Action Panes to guide activity and integration with MS Office

Familiar Excel Interface reduces time spent on training and operates from a single data repository

Plan &

Execute

CPM Consolidation GRC Process Controls

The Value of Holistic Financial Management Fast, Accurate Close

ERP Closing CockpitTransparency Compliance

Efficiency

The Value of Holistic Financial Management Intelligent Risk Management

Develop Risk Intelligent StrategyDevelop Plan for Executing Strategy

Analyze Performance and Course Correct as NeededRisk Related Data in a Performance Management Context

RISKMANAGEMENT

STRATEGYMANAGEMENT

Integrated Enterprise GRC and CPMBringing It All Together

INFORMATION

COMPLIANCEMANAGEMENT

PERFORMANCEMANAGEMENT

RISKINTELLIGENCE

SAP Leadership in the “Office of the CFO”

BusinessConsolidation

BusinessPlanning

Business Profitability

Management

NetWeaver Platform

“SAP is the first significant vendor to focus on the CFO in this way.”

Strategy Management

Compliance & Audit

AccessControl

RiskManagement

ProcessControl

Reliable CloseCSR

GRC

Financial Transactions & Services

Core Transactions AR, AP, etc

Standardization,Harmonization,Consolidation

(SHC)

SharedServices

Accounting, Fast Close

Tax

Treasury

Real Estate

Financial Value Chain

ERP

CPM

The Value of Holistic Financial Management Integrated Strategy, Planning, Risk, and Compliance

POST-MERGER SCENARIO

Initiatives are created for each of the 4 objectives

CFO communicates post-merger strategy with 4 key objectives: Cost Savings, Compliance, Performance Management and Risks

Controller plans integration of financial systems; closes, analyzes costs and profitability after month end consolidation and updated forecast

VP of Procurement negotiates best rate for purchasing parts

CRO sets up the risk profile in Risk Management, including Environmental, Global Trade andFinancial risks

Line Manager uses Access Controls to segregate duties with newly acquired employees.,

Calculate resource allocation, apply to plans and predict performance

CFO reviews scorecardto measure executionversus initial goals

I donI don’’t understand why we have decided to go with an 8 day close. We t understand why we have decided to go with an 8 day close. We werenweren’’t able to achieve this even before the acquisition, so how are wt able to achieve this even before the acquisition, so how are we going to do so now?e going to do so now?

Questions

Doug MerrittCorporate Officer and member of the Executive Council, head of Business User Development, SAP AG