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Business Network Transformation Example in CP-Retail
Closed Loop Trade Promotion Management between Retail-CP
Steve Winkler – GEPG Standards Management & Strategy Amit Sinha – Business Network TransformationJulio Navas – Live Enterprise TechnologyGary Adams – CP Industry Business Unit, Superior Customer ValueMark Osborn – Industry Marketing - CPVince Rouleau – Field Services - Retail
September, 2008
sample for a
picture in the title
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© SAP 2008 / Page 2
Industry Boundaries Are Being RedefinedValue Chains Are Evolving into Business Networks
Value chain
Company-centric
Command and control
Ownership-driven
Self-contained risk
Business network
Customer-centric
Connect and collaborate
Relationship-driven
Shared risk
Competitive Advantage will go to companies that collaborate across their network for better customer results
Competitive Advantage will go to companies that collaborate across their network for better customer results
Internet of Things OverviewThe Business Internet
KraftMixing Center
DistributionCenter
Retailer ADistribution
Center
Supplier
DSDDistribution
Center
Retail Store A
Retail Store B
Mfg Plant
BW
Legacy
Live Enterprise
Custom
Live Enterprise
Live Enterprise
Live Enterprise
Live Enterprise
Live Enterprise
Live Enterprise
Custom DB
The Internet of Things is a conceptual framework where information about physical items is shared across company boundaries on an open architectural platform
The primary driver is increased visibility in the supply chain
Uniquely identifiable products is a prerequisite for such a system
The creation of an Internet of Things platform that ties together business systems would enable SAP to deliver a new breed of applications and value to our customers
SAP should take a thought leadership position on the IoT
Live Enterprise technology can be used to create the network
IOT: The Distributed Model
Live EnterpriseConnecting Enterprise Systems
Department Enterprise Trusted Partners
SAP Applications Web ServicesDatabases
Live Enterprise
Business User Applications
BPC Analytics GRC
Direct
Push to User
Live Enterprise is an SAP server component that creates a network overlay
It propagates business information to other LE nodes, similar in fashion to DNS, but in real time
The distributed nature enables discovery of events across a business network
LE originated as an Imagineering project
GRC was the first to take advantage of LE by creating new applications that can detect risk events.
4x faster implementation
$5.4M cost savings
LE will be released as a GRC product in Q1 2009
LE is a viable option for SAP to take a thought leadership role in developing the IoT, and can serve as a platform for new types of SAP applications
Standards Are Critical The Key to Success
IOT Cloud IOT Cloud
Company A Company B
Opportunity SAP Position
SAP has a large worldwide install base that contains the core business data needed for an IoT
SAP has emerging technologies like Live Enterprise that can be used to build the IoT
SAP application knowledge enables us to derive new apps leveraging the IoT
The IOT enables discovery of events and data about objects across a business network
Most companies today have poorly integrated system landscapes
Companies want to track uniquely identifiable data across their business network
Accessing data across company boundaries requires an agreement on common interfaces
1. Trade Promotion Management
Demonstrate LE capability of sharing operational data across company boundaries
Not an obvious affront to GS1/EPCglobal or our customers that support them.
3. Master Data Synchronization
Create a LE based MDS system to augment / replace GDSN
2. E-Pedigree
Regulatory requirements are driving RFID adoption and are the primary focus for the RFID standards Body EPCglobal
Proposed Standards StrategyCreate Market For New CP/Retail Applications
Live Enterprise
Business User Applications
TPM Pedigree MDS
Develop Consumer Products and Retail focused Internet of Things applications to drive adoption of the Live Enterprise technology and create a de facto standard
Trade Promotion ManagementThe 1st BNT Application
© SAP 2008 / Business Case – Warp 10/ 7
Placeholder for an overview slide describing the TPM scenario in
more detail. - Gary Adams
© SAP 2008 / Business Case – Warp 10/ 8
Placeholder for an tech overview
Trade Promotion ManagementThe CP Value Proposition
© SAP 2008 / Business Case – Warp 10/ 9
Placeholder for an overview slide describing the value prop for our
CP customers. - Gary Adams
Trade Promotion ManagementThe Retail Value Proposition
© SAP 2008 / Business Case – Warp 10/ 10
Placeholder for an overview slide describing the value prop for our
retail customers. - Vince Rouleau
Trade Promotion ManagementNext Steps
Bring together stakeholders to determine viability
Define the scenario scope and value proposition for CP and Retail customers.
Define high level technical architecture for the scenario.
CP side: Colgate – already have a LE POC that is realizing significant benefit
Retail side: PetSmart – has demonstrated strong belief in BNT vision
Use a 3rd party to do a rapid prototyping of the solution.
Involve SAP teams to facilitate an easy transition from prototype to SAP product.
Demonstrate that BNT is real at SAP
Invite more CP/Retail customers and prospects to participate in defining enterprise services for TPM
Roll requirements in and build solution for delivery late next year
Standardize portions of the IP to create a product advantage for both the CP and Retail Industry, just like we did in Banking
© SAP 2008 / Page 12
Appendix
Strategic Engagement – Banking ExampleStandards Create Markets
© SAP 2008 / Business Case – Warp 10/ 13
Banking Definition Group
Enterprise Services for Banks
Global Banks & SAP Banking
Credit Suisse
Deutsche Postbank
ING
Nordea
Standard Bank
ABN AMRO
ABSA
Barclays
BBVA
Banca Intesa
Phase I: Create a community of customers and prospective customers to define basic community goals, under SAP control
Phase II: Open the community to other vendors, still on SAP terms, and determine an architectural approach
Phase III: Once SAP has established its leadership position, move the results to a neutral standards organization – in this case the organization had to be created
BIAN – Global Banks, SAP Banking, & Other Vendors
Credit Suisse
Deutsche Postbank
ING
Nordea
Standard Bank
ABN AMRO
ABSA
Barclays
BBVA
Banca Intesa
Industry Standards for Banking
Banking IVN
© SAP 2008 / Page 14
Banking – SAP Teams with Customers to Give Birth to a New Market Provides Industry Architectural Leadership - BIAN
Seventeen founding members have launched BIAN.
“Being an active member of the Industry Value Network of Banks, Credit Suisse sees the creation of this association as significant milestone for not only ourselves, but for the industry as a whole,” said Claus Hagen, head of Integration Architecture, Credit Suisse. "The association will create an open environment of members that begins with an idea and takes it all the way through to execution.”
Description
SAP spearheaded the creation a standards organization called the Banking Industry Architecture Network (BIAN), which focuses on application to application interoperability.
Opportunity
The market for banking applications is currently wide open, because the vast majority of banks’ enterprise software today is home grown. SAP is actively stimulating the expansion of the market for packaged banking software by providing a framework architecture for the banking industry.
Benefits
For Customers1. Lower Integration Costs2. Standard Packaged Software (Lower TCO)3. Higher Reliability
For SAP1. SAP will assume a firm position in a
battleground industry.2. New revenue streams and growth.