SAP AG 2006, “IT as a Strategic Driver of Value …...©SAP AG 2006, “IT as a Strategic Driver of Value Creation”, Shai Agassi, 12 Manage performance Ensure visibility of business

© SAP AG 2006, “IT as a Strategic Driver of Value Creation”, Shai Agassi, 1

Shai AgassiPresident, Product & Technology GroupExecutive Board Member, SAP AG

OUR OPPORTUNITY TO OUTPERFORM


…YOU ARE THE DIFFERENCE

mySAP Business Suite on SAP NetWeaver (All Industries)

Ahead of Market Expectations and Company’s GuidanceOver-Delivered on ESA Road Map and ESA Adoption18 Industry Titans are “Enterprise Services Ready”

31,000 Installations of SAP NetWeaver Components1,600 Customer References for Non-SAP Integration300+ ISV Products to be “Powered by NetWeaver”

5 Industry Value Networks are Kicked Off

$8.5B Revenue $1.5B Net Income

18% Organic Growth in Software Revenue

60% Peer Group Market Share

360,000 SDN Members

ISVs Access to Enterprise Services

SAP ACHIEVED NEW HEIGHTS IN 2005…


ENTERPRISE SOFTWARE WAVES

EVOLUTIONARY STAGES OF ENTERPRISE SOFTWARE

TechnologyTransition

ApplicationTransition

IndustryTransition

ImmediateTrading

1995

2005

ImmediateChange

2005

2015

UsageTransition

ImmediateReporting

1990

2000

ImmediateProcessing

1980

1995

The few, the brave

Batch

Industry specific consulting

Separate appson separate platforms

Industry-specific modifications& extensions

Users in corporate functions

Integrated ERP on 1 platform

Pointintegrationtechnologies

Industry-specific capabilities in1 code base

New usagein sales, supply chain, R&D …

Applicationsuites on 1 platform

Integrationplatforms

Industry-specific xApps and platforms

Ubiquitous business processes

xApps using common& consistent EnterpriseServices

Composition and business process platforms


BUSINESS INNOVATION NEEDS FLEXIBILITY

INNOVATION STANDARDIZATION

CONSOLIDATE

COMPOSERETIREINVENT

for differentiation for pr

BUSINESS PROCESS LIFECYCLE

oductivity


WE BELIEVE FOR I.T. TO DELIVER THE FLEXIBILITY NEEDED IT MUST CREATE A SINGLE, UNIFIED PLATFORM THAT PROVIDES A REPOSITORY OF COHERENT SERVICES.

STRATEGIC ASSUMPTION


300+ EnterpriseServices productized

Stored in 1unified repository

Powered by SAP NetWeaver 2004s

1000+ leveraging SAP NetWeaver to build applications

SAP NetWeaver 2004s

myS

AP

200

5

OtherApps

OtherPlatforms

OtherBusinesses

IndustryStandards

SAP Partner CustomxApps

Application Components

THE PLATFORM COMBINES APPS AND INFRASTRUCTURE

mySAP 2005 – THE 1st SERVICES-ENABLED BUSINESS SUITE

xAppsxApps

CRM ERP SCM …EnterpriseService

Repository

Portal Devices Office RFIDRendering

http://www.sapdesignguild.org/editions/edition6/images/chrome-portal.jpg

http://www.atcommunications.co.uk/images/colour blackberry above.JPG


SOA IS GREAT, BUT NOT ENOUGH

SOA + ES = ESA

ENTERPRISE SERVICES CAPTURE BUSINESS SEMANTICSAND REPRESENT A “COMMON LANGUAGE OF BUSINESS”


WE BELIEVE THE MARKET SHIFTS FROM POINT SOLUTIONS TO INDUSTRY-FLAVORED SUITES.



ERPSRM SCM PLM CRM

FROM POINT SOLUTIONS TO APPLICATION SUITES

FOCUS AREAS OF BUSINESS PROCESSES CO-INNOVATION

Manage performance

Enable new growth

Manage relationships

Optimize operational networks

Consolidate the core

Ensure compliance

Focus on differentiationFocus on differentiation

Focus on productivityFocus on productivity


Manage performanceEnsure visibility of business results across all business processes

Enable new growthDrive new top line growth through innovation, either by delivering

new products or by composing highly competitive business processes.

Manage relationshipsDrive bottom line growth by automating and integrating business processes across

boundaries such that they include customers, suppliers and business partners

Optimize operational networksMinimize your physical assets – from supplier rationalizationand inventory optimization to call centers and out-tasking

Consolidate the coreOptimize your virtual assets – support the transition to

shared services and consolidate your IT landscape

Ensure complianceBe compliant to new legal & corporate

requirements in a matter of days

Focus on differentiationFocus on differentiation

Focus on productivityFocus on productivity

FROM POINT SOLUTIONS TO APPLICATION SUITES

FOCUS AREAS OF BUSINESS PROCESSES CO-INNOVATION


WE BELIEVE PEOPLE LIKE THEIR CURRENT USER EXPERIENCE BUT WANT BUSINESS PROCESS CONTEXT TO BE PART OF IT.



BUSINESS PROCESSES BECOME UBIQUITOUS

Office Mobile PortalForms

BUSINESS PROCESS CONTEXT IN YOUR UI OF CHOICE

SAP NetWeaverBusiness Process Platform

EnterpriseService

Repository

Home Grown/

ISV ProcessComponents

Sub-sidiary

xAppsComposites powered by SAP NetWeaver

BizpartnerSAP

RSSRFID Embedded


WE BELIEVE I.T. WILL HAVE TO BECOME STRATEGIC TO THE BUSINESS OR WILL BE OUTSOURCED.



TRANSITIONING THE ROLE OF IT

THE CURRENT WAVE WILL HAVE A BIG IMPACT ON CIOs

CIO

Val

ue to

the

orga

niza

tion

time

CITO

Chief IT Officer• Continued reduction

in IT budgets (outsourcing)• Drive landscape consolidation

CPIO

Chief Process Innovation Officer• Partner of LOBs• Designs processes with

the business’ network• Requires new skills to be developed

as part of the IT organization


Consolidators

Disruptive Innovators

Composers

SAP NetWeaverBusiness Process Platform

xApps

ProcessComponents

Sub-sidiary

Bus Partner

Home Grown /

ISVSAP

Enterprise Services

Repository

TRANSITIONING THE ROLE OF IT

BREAK THE SILOS, BUILD NEW HORIZONTAL SKILLS CENTERS

Repository Keepers


WE BELIEVE ECOSYSTEMS THAT REUSE COMMON SERVICES DELIVER MORE, FASTER & CHEAPER INNOVATION THAN ANY SINGLE VENDOR.



SAP INCREASES THE ECOSYSTEM’S ECONOMIC VALUE

• Focus on Core: Growth in IT spend lags growth in business revenue

• Simplicity through common enterprise services

• Ride Wave: Convergence of composition technology and application content

CUSTOMER NEEDS

SUPPLIERS(ISV, SI, Technology, SAP)

ENGAGEMENT MODEL

SAP Ecosystem

CUSTOMER NEEDS(Industry Solution Maps, Innovations)

SUPPLIERS(ISV, SI, Technology, SAP)

IT PRODUCTIVITY(platform, apps, deployment)

ENGAGEMENT MODEL(community, certifications, partner prog)


CUSTOMER & PARTNER GROUPS

ES COMMUNITY

SAP

ENTERPRISESERVICES

REPOSITORY

Industry Value NetworksPowered by SAP NetWeaver

ASUG/DSUG OTHER

ENTERPRISESERVICESPROPOSAL

TechnologyPartners

ISVs

Customers

SAP

SIs

Definition Groups

ES Community allows the ecosystem to influence and define enterprise services critical to success

ENTERPRISE SERVICES COMMUNITY LAUNCH


A Week in the Life of an Enterprise ServiceFrom Business Need to SAP xApps Certified Solution

ENTEPRISE SERVICE

ECONOMIC VALUE• Business Case• Customer Value Prop

TRUSTED ECOSYSTEMSAP Shares Knowledge & Industry Expertise

CERTIFY xAPP

• Certify Partner Composite• Determine GTM• (Industry, Horizontal Campaign)

READY

INDUSTRY TRENDS

MEMBERSHIP PRIVILEGES• Join ES Community• Explore ES Inventory• Define Enterprise Services

CONSISTENCY &ACCOUNTABILITY• IP & Licensing• Evaluation & Development• ES Productization• SAP Build Enterprise Service

DEVELOP COMPOSITE APPLICATION• Leverage Composition Platform• Consume ES From ESR


ECOSYSTEM STRATEGYSAP IS BUILDING THE MOST VALUABLE ECOSYSTEM FOR CUSTOMERS


Industry Input

ANNOUNCED: INDUSTRY VALUE NETWORK FOR CHEMICALS

Knowledge Sharing Stimulates Co-Innovation

http://www.smartops.com/


SUMMARY

Customers want sustainable growth

No single company can provide all innovation needed

ES Community empowers ecosystem to recommend & define enterprise services

Co-innovation under the guidance of efforts like Industry Value Networks – Build xApps

End-to-end industry solutions, together – customer satisfaction!

4

3

2

1

5


Thank you for Partnering with us!

Shai AgassiPresident, Product & Technology GroupExecutive Board Member, SAP AG

Documents

SAP AG 2006, “IT as a Strategic Driver of Value …...©SAP AG 2006, “IT as a Strategic Driver of Value Creation”, Shai Agassi, 12 Manage performance Ensure visibility of business