SAP Product Strategy

1
SAP Product Strategy
Contents

• Product Positioning
• Services for SAP partners
• Calculation Example

2
SAP Strategy Unit Objectives
At the conclusion of this unit, you will be able
to

• Describe the solutions offered by SAP in the
  small and midsize businesses market
• State the services offered by SAP to its partners
  
• Describe the price model for the marketing ofSAP
  Business One

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SAP Solutions for SMB

• Comprehensive Solutions Portfolio
• Meets The Unique Needs Of Small and Midsize
  Business
• SAP Business One Simple But Powerful
• mySAP All-in-One Complete and Adaptable
• Scalability To Fuel Future Growth
• Supported By Network of SMB Channel Partners

4
SAP Offers Solutions for Companies of All Sizes
SAP Solutions for SMB
Midsize Companies /Subsidiaries
Small Companies /Subsidiaries
LargeEnterprises
mySAP All-In-One Consists of the mySAP Business
Suite tailored to the needs of midsize companies
the software is easy to install, implement,and
maintain, and provides a full range of business
functions
SAP Business One Can be implemented in a matter
of days and provides all the functions you need
mySAP Business Suite Complete set of business
functionality for all requirements
5
SAP Business One Shows Better Usability!
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Some Facts About SAP Business One

• Targeted to companies between 10-250 employees.
• Already 1,300 customers and 150 partners in
  Europe, Middle East, and the Americas
• Available in 14 languages and 12 countries -- by
  end of 2003, to be available in 22 countries
• Leverages SAPs 30 years of business software
  leadership
• Almost full industry coverage
• 3rd party solutions
• Internal practices
• Many CEOs are using the system
• Many subsidiaries of mySAP customers

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The Need for Integration
Subsidiary
Subsidiary
Subsidiary
Subsidiary
mySAP Business Suite
Subsidiary
Vendor
Subsidiary
Headquarter
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Without SAP Business One
Large Corporate Groups using the SAP Business
Suite at the Head Office
Situation

• IT decisions have to be taken for each branch
  office

UK SMB Solution 1
Germany SMB Solution 2
Head Office SAP Business Suite
US SAP Business Suite
Result

• No consistent, consolidated view
• No integration with the branch offices
• High IT costs due to different systems

Norway SMB Solution 3
Singapore SMB Solution 4
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Integration with the SAP Business Suite
Data Integration
Objective
Participants
Consolidated reporting structure within an
enterprise
Head Office Subsidiaries
SAP BusinessInformationWarehouse
One view of allsubsidiaries
Head Office Subsidiaries
SAP Enterprise Portal
Head Office Subsidiaries Sales Personnel
Vendors
Data exchange forcross-enterprise collaboration
SAP Business ConnectorSAP Exchange
Infrastructure
Data and Process Integration
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Using SAP Business One
Opportunity
Large Corporate Groups using the SAP Business
Suite at the Head Office

• IT decisions made easier by purchasing a standard
  solution from SAP

UK SAP Business One
Germany SAP Business One
Head Office SAP Business Suite
US mySAP All-in-One
Benefits

• Integration with branch offices/subsidiaries
• Integration packages for mySAP Enterprise Portal,
  SAP Exchange Infrastructure, and SAP Business
  Information Warehouse (SAP BW)

Norway SAP Business One
Singapore SAP Business One
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Integration via XI

• Up to 40 of all SMBs are subsidiaries of large
  customers
• Facilitates commerce communities between
  corporations of all sizes
• SAP Exchange Technology enables Supply Chain
  completion

Large Accounts
Sophisticated SMBs
Advanced SMBs
Small Businesses
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The World With SAP Business One
SAP Business One
SAP Business One
SAP Business One
SAP All-In-One
MySAP.com
SAP All-In-One
SAP Business One
SAP Business One
SAP Integration Platform
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Summary SAP Supports the Global Enterprise
Headquarters
mySAP.com
Distributor

• Worlds leading business solution
• Full value chain integration

mySAP All-in-One

• Full functionality
• Pre-configured

Factory
SAP R/3 Enterprise
Sales Subsidiary

• All core functionalities
• Vertical Integration

SAP Business One

• Necessary functionalityup to 100 users

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Services for SMB Partners (1)

• Partners receive the following services
• Partner/channel manager concept
  (support/consulting/technical support)
• Consulting (support during implementation of the
  first projects)
• Demo system for five users ( one user for each
  certified employee Notebook license)
• Partner portal for system resellers (for all the
  relevant information)
• High-performance lead-generating activity
• Good value production system for SSP (40
  discount for margin)
• Sales kit/marketing basic equipment
• Reference materials (white papers, customer
  success stories etc.)

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Services for SMB Partners (2)

• Opportunity of participating in further training
  courses
• 40 training days (sales and marketing,
  technology, implementation,technical support)
• E-learning maps (on the Service Marketplace)
• Participation in WebEx sessions (current topics
  and products, sales, implementation and so on)
• On-site seminars and e-learning units for the
  Software Development Kit (SDK)
• In addition, you also profit from the following
• An SAP marketing campaign with the target group
  SMB
• Quantity discount and sales commission
• Second level support for 10 of the license price
  per year

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Support Services

• Trouble-shooting during installation,
  implementation, operation
• Partner portal
• Support platform
• Knowledge database (currently approx. 600
  problems plus solutions)
• Document-based database (under construction)
• Hotline 5 days/8 hours (country-dependent, for
  customer emergencies)
• Hotline 7 days/24 hours (for absolute
  emergencies, telephone number of duty managerin
  the partner portal)
• Support partner forum (conference call, every
  last Friday in the month)
• Project support "remote save guarding" request
  by partner(difficult, problematic project, name
  of employee assigned to the project)

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Price Model
K
Structure of EMEA Price List

• Pricing is based on defined users.
• The simplest price is ensuredlow presales
  costs.
• Pricing starts at 2,500 per user and at least
  5,000.
• SAP offers a discount scheme based on the volume
  of licenses sold.
• SAP charges 10 of the license costs for
  maintenance and support.
• The final price for maintenance and support is
  negotiated between the partner and the customer
  (recommended 20).

SAP Business One list price
Reseller retains profit from this margin
SAP commission based on this price
SAP Business One discount scheme
User

• Two main advantages of this price scheme
• System resellers with an especially high turnover
  are rewarded.
• The necessary flexibility for regionalprice
  lists is ensured.

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SAP Business One Calculation Examples
Payment Customer to Partner 10 SBO-User x 2,500
25,000 Plus CRM (for Calculation of Database
Price) 2,500 SAP Application Value
(SAV) 27,500 Plus 7.5 as Price for Database
2,063 29,563 Minus CRM - 2,500
27,063 Minus 20 Volume Discount -
5,413 Payment Customer to Partner 21,650 Plus
CRM (for Calculation of Maintenance)
2,500 Basis for Maintenance 24,150 Payment
Partner to SAP Price for Database
2,063 Minus 20 Volume Discount -
413 Payment Partner to SAP (database)
1,650 Standard Net License Value w/o CRM
20,000 Minus 40 Partner Discount -
8,000 Payment Partner to SAP (SBO)
12,000 Payment Partner to SAP (database)
1,650 Payment Partner to SAP (SBO)
12,000 Payment Partner to SAP (Total) 13,650
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Further Information
20
SAP Product Strategy Unit Summary
You are now able to

• Describe the solutions offered by SAP in the
  small and midsize businesses market
• State the services offered by SAP to its partners
  
• Describe the price model for the marketing ofSAP
  Business One