SAP 2003: Your Technology and Business Roadmap

1
SAP 2003 Your Technology and Business Roadmap

• Jim Shepherd
• Senior Vice President
• AMR Research

2
Agenda

• SAPs Business Strategy
• SAPs Product Strategy
• SAPs Technology Direction
• What Should You Worry About ?
• Maximizing The Value of Your SAP Investment

3
SAP Snapshot

• 7.4B in FY02 Revenues
• 56 from Maintenance and Services
• FY03 Expectation Flat Revenue, Improved Profits
• 19,300 Customers
• 50,000 Installations 120 Countries
• 23 Industry Solutions

4
SAPs Business Strategy

• Account Control- The Reliable Business Partner
• Growth Influence Greater Share of IT Spending
• Customer Lifecycle Management -
• ROI -SAP Delivers Value
• Services, Maintenance, Add-ons
• New Markets and Channels
• We dont want to be just the safe haven
  Consider us your trusted innovator
• Henning Kagermann Sapphire 2003

5
CIO Issue
Source SAP AG
6
SAP Business Strategy
Become Your Trusted Partner
Strategic Consulting
Discover Evaluate -gt Implement
-gt Operate
Business Software
Business Consulting
System Support
Out-sourcing
System Integration
Application Layer
Infrastructure Consulting
Infrastr. Software
Infrastructure Support
Middleware Layer
Technical Support
Hardware OS, DB, ...
IT Layer
Source SAP AG
7
SAP Business Strategy
Extended Range of Services

• New Maintenance Offerings
• Architecture Planning
• Custom Development
• Consulting
• System Integration
• Operations Planning Optimization
• Hosting / Outsourcing

8
SAP Business Strategy
New Markets and Channels
SAP Direct Sales
Vertical Resellers
Business One Centers Sales/Service Partners
Source SAP AG
9
SAP Product Strategy
All Things For All Buyers
SAP for ltIndustrygt

• SAP for Aerospace Defense
• SAP for Oil Gas

• ...

SAP Packaged Solutions

• Service Management for ltIndustrygt
• Financial Insights for ltIndustrygt

• ...

• mySAP Business Suite
• mySAP ERP
• mySAP CRM
• mySAP SCM
• ...

• SAP xApps
• SAP xApp Resource Program Management
• SAP xApp Mergers Acquisitions
• ...

SAP Smart Business Solutions

• mySAP All-in-One

• SAP Business One

SAP NetWeaver

• SAP Enterprise Portal
• SAP Master Data Mgmt.

• SAP Business Intelligence
• SAP Exchange Infrastructure

• SAP Mobile Business
• SAP Web AS

Source SAP AG
10
SAP Customers Within Fortune 500
SAP Vertical Market Penetration
source Fortune 500 2002 SAP Analysis
Source SAP AG
11
Current Application Strategy

• The Ever Expanding mySAP Business Suite
• R/3 Enterprise or MySAP ERP ?
• Scalability All-in-One and Business One
• The xApps (Cross-Applications) Framework

12
The Ever Expanding mySap Business Suite
Source SAP AG
13
SAP Product Strategy
Scalability
Headquarters
mySAP.com
Distributor
Exchange Infrastructure
SAP All-in-One
Factory
SAP R/3 Enterprise
Sales Subsidiary
SAP Business One
Source SAP AG
14
SAP Product Strategy
xApps
xApps are Packaged Composite Applications. They
deliver newend-to-endbusiness processes,that
snap-on to an existing IT environment. Start out
as separate next practices but migrate to
suite-based best practices
Source SAP AG
15
Announced xApps
SCM
CRM
PLM
HR
Finan- cials
Legacy
Desk-top/ Office Support
SRM
SAP xAppResource and Program Mgmt
SAP xAppMergers and Acquisitions
SAP xAppEmployee Productivity
SAP xAppProduct Definition
Functional Transactions (Hindsight)
Source SAP AG
16
R/3 Enterprise
17
R/3 Enterprise Rollout
Internal Customer Release
Restricted Shipments
Unrestricted Shipments

• New Ramp-up Release Process
• 200 Customers in Controlled Release Phase
• 1000s of Copies Shipped Since January
• Reports From Customers Are Very Positive

7/02
12/02
18
mySAP Business Suite
mySAP PLM
Maintenance Quality
mySAP ERP Financials Human Resources Corporate
Services Operations
mySAP SRM
mySAP CRM
Sales Order Delivery Management
Purchase Order Management
Inventory Production
mySAP SCM
SAP NETWEAVER
Source SAP AG
19
mySAP ERP
Strategic Enterprise Management
Analytics
Financial Analytics
Workforce Analytics
Operations Analytics
Financial Accounting
Management Accounting
Financial Supply Chain Management
Financials
Human Resources
Employee Relationship Management
Employee TransactionManagement
Employee LifecycleManagement
Purchase Order Management
Maintenance Quality
Production Management
Inventory Management
Delivery Management
Sales OrderManagement
Operations Management
Corporate Real EstateManagement
Incentive CommissionsManagement
CorporateServices
Travel Management
SAP NetWeaver
Application Platform
Process Integration
Information Integration
People Integration
Source SAP AG
20
SAP Migration Strategy
SAP NetWeaver
mySAPBusiness Suite

• mySAP Business Suite
• Customer can buy and deploy mySAP Business Suite

1
SAP NetWeaver
mySAPERP

• mySAP ERP
• Customer can buy and deploy mySAP ERP

2

• Combining mySAP ERP Solutions
• Customer can combine mySAP ERP with mySAP
  Solutions

SAP NetWeaver
3
mySAP SCM

mySAPERP

mySAP CRM


Quickstep Packages

• Combining R/3E Parts
• Customer can combine existing R/3 Installations
  with Solutions, SAP NetWeaver (also parts of it
  like e.g. Portal or BI) and with Quickstep
  packages

4
mySAP SCM

R/3 Enter- prise
mySAP CRM

SAP NetWeaver

Quickstep Packages

21
SAP NetWeaver

• New technology foundation of MySAP products
• Centralized collection of SAP technologies
• Application Servers
• UI Management
• Integration Framework
• Security
• Business Process Mgmnt
• Data Warehousing
• Portal Framework
• Etc.
• Neutral positioning toward IBM WebSphere and
  Microsoft .NET

Web-Sphere
.NET

Source SAP AG
22
What Should You Be Worrying About ?

• Instance Consolidation
• New mySAP.com Functionality
• PLM, APO, Portals, CRM, etc.
• Release Strategy Expectations
• R/3 Enterprise, MySAP ERP, MySAP Business Suite ?
• Extended Deployment
• Internally
• Externally

23
Maximizing Your SAP Investment

• Competency Center -- Business Process Improvement
  Not A Help Desk!
• Continuous Training Education
• Enterprise Performance Management (EPM)
• Network Theory -- A system becomes more valuable
  as it touches more users
• Any ERP System Needs Better Public Relations