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Simplify, Optimize, and

Innovate with SAP ERP


Tobias Dosch and Philip Say
SAP

Vienna, Austria, May 14, 2007


Business Change…

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Changing Business Requirements for the Enterprise

Within the Enterprise Spanning the Industry

„ Heightened focus on process collaboration


„ Integration of industry value chains
„ Diverse profile of employees and roles
„ Mandate for control, transparency and risk management

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Establishing a Hub for Your Business Network

Senior
Managers

Employees
Production
Managers

Finance Supply Chain


Managers Managers

Sales Executives
and Account
Teams

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mySAP ERP 2005
6.0

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mySAP ERP is Now Simply, SAP ERP

Original Product Names Simplified Solution Names

mySAP ERP SAP ERP

mySAP ERP 2005 SAP ERP 6.0

mySAP ERP Financials SAP ERP Financials

mySAP ERP HCM SAP ERP HCM

mySAP ERP Operations SAP ERP Operations

mySAP ERP Corporate Services SAP ERP Corporate Services

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Retooling ERP to Respond to Today’s Requirements

Business Functions SAP R/3 SAP ERP

Industry capability Add-on Integrated

Analytics and reporting Optional Standard

Financial consolidation and collaboration Optional Standard

HCM - Talent management Add-on Complete

Operations and logistics Internal Collaborative

User experience SAP GUI Multi-Channel

Enterprise services-enabled Not Available Standard

Maintenance and support 2009 2015

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SAP ERP
Enhanced and Integrated Business Processes

Financials Human Capital Management


„ Simplified reporting and CPM „ Integrated talent management
„ E-Invoicing, collections „ Succession management
„ New General Ledger „ Support for HR shared services
„ Support for SWIFT, SEPA „ Expanded roles and self-services

Corporate Services Logistics and Operations


„ Real-estate and property „ Simplified sales order entry
management „ Services procurement
„ End-to-end travel „ SAP xApps integration
management Platform Solutions
„ Additional roles: sales, buyers
„ Enterprise asset „ Industry “switch framework”
management
„ Enterprise services bundles
„ Integrated business intelligence
„ Eco-system of partner solutions

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Simplifying SAP ERP For Business Users

Role-Based Portals

Guided Processes

Collaboration

Interactive Forms

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Making Work Easier for Employees and Managers

„ Multi-channel application
delivery
Desktop
„ Connecting employees with
Employee and Manager other employees and
Self-Services Phone: Call Center information
„ Reshaping systems to work
around people

Phone: Voice Mobile


Recognition

Employees
and Managers

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Our Product Strategy…

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The Mission

Deliver world class ERP applications that


enable our customers to become a best
run business in their industry

Simplify.

Optimize.

Innovate.

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The Challenge: Innovation without Disruption

“ Once my system is up and running, you can touch


my core processes once every 5 years ...

and it needs to be a Saturday …

and my CEO wants me to innovate every quarter”

CIO, Fortune 1000 Manufacturing Company

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SAP ERP 6.0 – The “Go-To” Release

2005 2006 2007 2008 2009 2010

Enhancement Packages Next


Suite
Release
SAP ERP 6.0
SAP NetWeaver

Customers Adopt Innovation at their Pace

Process and User Industry-Specific


Interface Simplification Enhancements

Enterprise SOA Cross-Industry Enhancements

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Simplifying Access to ERP Innovation

ERP ENHANCEMENT PACKAGES


Enhancement Enhancement Enhancement Enhancement Enhancement
Package 1 Package 2** Package 3* Package 4* Package 5*

HCM Shared Order To Procure To Attract To Accounting


Services Cash Pay Perform To Reporting
SIMPLIFICATION

Adaptive Order To Procure To Financial


Manufacturing Cash Pay Shared
ENTERPRISE SOA Services

Invoice to
Learning Fast Closing Compensation Treasury
Cash
FUNCTIONALITY

Service Trading Discrete Process


Retail
Industries Industries Industries Industries
INDUSTRIES

*Subject to change **preview available on Service Marketplace


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Innovation without Disruption

Optional Optional Implementation


‰ Enhancement packages are optional
to implement
‰ If implemented:
Enhancement - No UI or process change until a
Packages business function is activated
- No implications on the underlying
NetWeaver platform
Optional Activation
‰ All enhancements are packaged in a
set of “business functions” optional to
activate
‰ If activated:
- End-user training and regression
test limited to the business
Support functions activated
Packages - Testing simplified with templates
provided for specific business
Mandatory functions activated

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Simplifying ERP Ownership Experience

1
Discover
Line of Business
Owner, Power User

Test & Go Live Evaluate & Decide


Business Analyst, Business
Power Users, Analyst &
5 End Users IT Team 2

4 3
Activate & Configure Prepare & Install
Programmer and ERP System
Business Analyst Administrator

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Innovating ERP – Service Enablement Strategy
Partners Design Source Make Deliver Return Customers

Order-To-Cash

Procure-To-Pay

Idea-To-Product

Service-For-Customer

Plant Operations

Logistics Execution

Enterprise Management & Support


Analytics Financial Analytics

Financials Financial Accounting Treasury & Cash Management Accounting


HCM Workforce Deployment Workforce Process Management Talent Management
Corporate Services Real Estate Management Travel Management Environment, Health & Safety
Operations Support Quality Mgmt Inventory Mgmt Transportation Enterprise Asset Management

High focus in 2007 Medium focus Initial eSOA enablement

Evolutionary approach
Focus on “End to End” processes

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Release and Maintenance Strategy SAP ERP

SAP
Two-extra years
ERP 6.0 Ramp- Ext. Maint. Ext. Maintenance
(mySAP ERP 2005) Up Mainstream Maintenance (+ 2%)* (+ 4%)*

mySAP Ramp- Ext. Maint. Ext. Maintenance Customer-Specific


Mainstream Maintenance
ERP 2004 Up (+ 2%)* (+ 4%)* Maintenance

SAP R/3
Enterprise Ramp-
Mainstream Maintenance
Ext. Maint. Ext. Maintenance Customer-Specific
47x200 Up (+ 2%)* (+ 4%)* Maintenance

Ext. Maint. Ext. Maintenance Customer-Specific


SAP R/3 4.6C Mainstream Maintenance (+ 2%)* (+ 4%)* Maintenance
Dec

Dec

Dec

Dec
Dec
Sep

Mar
Jun

Feb

Mar

Mar
Jun

Mar

Mar

Mar
Apr
Jan

Mar
Oct
Jul

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Benefits to Customers
Maintenance Strategy for SAP ERP 6.0 ‰ Greater Return on Upgrade Investment
‰ Two Extra Years of Maintenance for SAP ERP 6.0
‰ Longer stability

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Getting There…

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Building a Business Case for ERP Upgrades

Revenue
Enhancement Strategic
Business
Improvement
Upgrade

Functional
Upgrade

Cost
Reduction
Technical
Upgrade

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Business Benefits

Value of ERP Upgrades

Strategic
Strategic Upgrade to SAP ERP
ƒ Adopted SAP ERP to deploy Enterprise SOA infrastructure
Business
Improvement
Upgrade

ƒ Utilized ES bundle available with enhancement package 1


Functional
Upgrade

Technical
Upgrade
ƒ Realized greater flexibility in it order-to-cash processes
ƒ Improved invoicing and collections speed by 50%

Functional Upgrade to SAP ERP


ƒ Modernized human capital management capabilities
Functional
Upgrade
ƒ Self-services, performance management and learning
Technical
Upgrade ƒ Enabled Unicode
ƒ 30,000 users converted to new systems in one-weekend

Technical Upgrade to SAP ERP


ƒ Access to new functionality
ƒ Suppressed additional maintenance and testing costs
Technical
Upgrade
ƒ 30% reduction in TCO
ƒ 6-month project

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SAP ERP Upgrade Methodology

Plan Build Run

http://service.sap.com/upgrade-erp

„ SAP Upgrade Info-Center


„ SAP Upgrade Roadmap
„ SAP Upgrade Experience Database

Available for customers, partners and SAP experts

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Looking Forward…

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Looking Forward….

Strong adoption of SAP ERP

Simplification drives our product strategy

Enterprise SOA is a key element to the future

Aligning ERP to your strategic initiatives

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THANK YOU AND
ENJOY THE
CONFERENCE!

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