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SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action
Business Challenges for Smart Enterprises
Meeting the Key Business Challenges
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action
Business Challenges for Smart Enterprises
Meeting the Key Business Challenges
SAP 2004, 4
Few Companies Manage to Stay on Top
500
Companiesin S&P index
1957
74
… thosestill re-
maining
12
… thosethat out-
performed S&P index
overall
1998
Source: S&P Index, McKinsey, MMG
1998
SAP 2004, 5
Sustainable, Profitable Growth
THE WINNING STRATEGY
Refocus on GROWTHas the economic re-bound has arrived
Drive PROFITABILITY of growthas you keep improving margins
Ensure SUSTAINABILITY of growthas you innovate
SAP 2004, 6
The Winning Strategy
GROWTH THROUGH INNOVATION
Relationshipexcellence
Product/serviceexcellence
Operationalexcellence
Sustainable,Profitable
Growth
Sustainable,Profitable
Growth
Inno-vation
Inno-vation
Inno-vation
SAP 2004, 7
Business Process
SAP 2004, 8
Departmental Perspectives
“not a keycustomer”
“it’s just one missed sale”
“see & wait”
“will be backin inventory”
???
“extra effortcosts $$$”
SAP 2004, 9
The Bigger Picture: External and Internal Pressures
• Labor market• Interest rates
• SOX• Basel II
Price competition
Vertical integration
• Demographics• Buying behavior
Macro Economical Trends
Competitive Forces
Market Trends
ComplianceRequirements
SAP 2004, 10
Integrated Management Processes
Corporate Strategy1. Increase quality of service2. Drive transparency3. Invest in innovation4. …
Strategic Planning Scenario simulation Cash-Flow Forecast
Management Goal setting Alignment of interest Goal measurement
Perform. Management Operational planning Process optimization Operational execution
SAP 2004, 11
Business Process
“not a keycustomer”
“it’s a missedsale”
“see & wait”
“will be backin inventory”
???
“extra effortcosts $$$”
SAP 2004, 12
Business Process
ReturnsPer
Customer
DefectionRisk
DeliveryPerformance
InventoryForecast
Accuracy
CLTV
SAP 2004, 13
Business Process
ReturnsPer
Customer
DeliveryPerformance
Accuracy
InventoryForecast
CLTV
DefectionRisk
SAP 2004, 14
5 Key Business Challenges
2. Ineffective Decision Making ProcessesDecisions delayed, or made on ‘gut feel’ onlyKey stakeholders not involvedSolid information only available to small ‘elite’
1. Execution not aligned with Corporate StrategyCorporate strategy not communicated clearlyIndividual objectives not aligned with strategyPoor measurement, and no corrective actions
3. Increasing Competitive and Market PressuresLack of insight into markets and trendsOpportunities frequently missed
4. Compliance RequirementsCalls for transparencyIncreasing criticality of trustworthy data
5. Budget ConstrainsNeed to do more with less, and need to justify expenditures
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action
Business Challenges for Smart Enterprises
Meeting the Key Business Challenges
SAP 2004, 16
Challenge 1: Execution Not Aligned With Corporate Strategy
Aligning Strategy with Execution requires:• Common set of Metrics, KPI’s and Benchmarks• Balanced Scorecards• Solid and integrated planning framework Corporate Performance Management
“Less than 10% of strategies effectively formulated are effectively executed.” Fortune
SAP 2004, 17
Improved Decision Making requires: Reliable, up-to-date and easily accessible information Context, Guidance, and Collaboration Information actionable and in consumable formatSelf Service and Information Democracy
Challenge 2: Ineffective Decision Making Processes
Source: SAP
SAP 2004, 18
Challenge 3: Increased Competitive- and Market Pressures
“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself, but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy or yourself, you will succumb in every battle.”
Sun Tsu, The Art of War, 500 B.C.
Account Planning
Opportunity discovery and exploitation requires:• Predictive Analytics, Planning & Forecasting• Analytics embedded into Applications• Closing the Loop via Analytical Application Smart people using smart applications
SAP 2004, 19
Challenge 4: Compliance Requirements
Compliance and Corporate Governance calls for:• Transparency, and single version of truth• Trustworthy and auditable data (historic and current)• Right-time reporting, exception notification and alerts Reliability, completeness and transparency
SAP Management of Internal Controls (MIC) Reporting, Section 404
“The keys to meeting Sarbanes-Oxley requirements will be the timeliness of the reporting, as well as the validation that the system can detect and report the ‘material events’.” Gartner G2, 2004
SAP 2004, 20
Challenge 5: Budget Constrains
Calls for IT budget justification and doing ‘more for less’ requires:• Out-of-the-box templates and analytical applications• Integration with applications, and openness for change• Proven methodology and comprehensive support infrastructure Buy versus build, from viable partner
“[ETL] processes ... can absorb up to 70% of the time spent on a typical DWH project.” DM Review, 3/01
“… it is clear that a single architecture will yield a better ROI, is more likely to come online faster, and is less likely to fail, undeniably.” Neil Raden, Analyst, 1/04
SAP 2004, 21
Meeting the 5 Key Business Challenges
2. Ineffective Decision Making Processes
Self Service and Information Democracy
1. Execution not aligned with Corporate Strategy
Corporate Performance Management
3. Increasing Competitive and Market Pressures
Smart people using smart applications
4. Compliance Requirements
Reliability, completeness and transparency5. Budget Constrains
Buy from a strategic partner, don’t build
A smart business requires a complete, end-to-end, reliable and open BI Platform.
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action
Business Challenges for Smart Enterprises
Meeting the Key Business Challenges
SAP 2004, 23
The Business Intelligence Platform
Architecture Source: Gartner(“Managing Corporate Performance – What you need to know”; Lee Geishecker & Frank Buytendijk, 4/04)
Web Presentation/Portal/Mgmt Reporting
Mo
del
ing
an
d
Op
tim
iza
tio
n
Co
nso
lid
ati
on
Bal
an
ced
S
core
card
Bu
dg
etP
lan
/Fo
rec
ast
Sta
tuto
ryR
epo
rtin
g
Ad
Ho
c Q
uer
y an
d R
epo
rtin
g
DataMart DataMart DataMart DataMart
Data Warehouse
Integration Broker
ERP/CRM/SCM/External Sources
Bu
sin
ess
Pro
c. M
anag
eme
nt
Co
nte
nt
Man
ag
emen
t
Kn
ow
led
ge
Man
agem
ent
Presentation
CPMApplications
BIInfrastructure
DataSources
SAP 2004, 24
1 PlatformSynchronized release dates
1 FoundationWeb AS 6.40
1 PackageCoherent installation process
1 Set of scenariosIntegrated components
All AppsBusiness Suite, partner solutions and xApps developed on NetWeaver
SAP NETWEAVER
ONE PLATFORM – ONE PRODUCT
SAP NetWeaver™
Co
mp
osi
te A
pp
lica
tio
n F
ram
ewo
rk
PEOPLE INTEGRATION
Multi channel access
Portal Collaboration
INFORMATION INTEGRATION
Bus. Intelligence
Master Data Mgmt
Knowledge Mgmt
PROCESS INTEGRATION
Integration Broker
BusinessProcess Mgmt
APPLICATION PLATFORM
J2EE
DB and OS Abstraction
ABAP
Life C
ycle Mg
mt
Open integration and applicationplatform that enables change!
SAP delivers the complete, end-to-end, reliable and open BI Solution.
SAP 2004, 25
Accelerating NetWeaver Adoption with IT Practices
ReportsImplement BWProvide periodic operational reports to executives from multiple source
Applications & Application Services Platform Integration
Ab
ilit
y t
o C
han
ge
you
r B
usi
nes
s
Value Collaboration
Implement Collaboration Rooms
Right-time data accessImplement XI
Information DeliveryImplement Portal
Low cost distribution of personalized reports and alerts to a wide audience
Share documents; collaborate with colleagues for planning and resolution of business issues
Reports for real-time data to complement the batch-oriented data access of analytic applications and operational reporting;
Low High
High
SAP 2004, 26
Business Intelligence – Overall Solution
SAP 2004, 27
Business Intelligence – Overall Solution
SAP 2004, 28
Capabilities
Data Warehousing and Analysis Data Warehouse Management Extraction, Transformation and Loading Business Modeling OLAP Technology Data Mining and Predictive Analytics Alerting
Information Delivery• Query Design• Reporting and Analysis• Alert Notification and Report Broadcasting• Security and Personalization
Measurement and Management KPI’s, Metrics and Dashboards Business Planning and Simulation Business Consolidation (delivered via mySAP ERP Financials) Business Performance Measurement (delivered via mySAP ERP Financials) Collaboration and Guided Procedures
Best Business Practices Business Content and Industry Templates Metadata Management
SAP 2004, 29
SAP Web Application Server
Tech
nolo
gy
Applic
ati
on
SAP Basis
SAP R/3up to 4.6C
SAP R/3 Enterprise
mySAP ERP Edition 2003
Application
mySAP ERP Edition 2004+
SAP R/3 Enterprise Core
SAP NetWeaver™ ‘04
Co
mp
osi
te A
pp
licat
ion
Fra
mew
ork
APPLICATION PLATFORM
Life C
ycle Mg
mt
SAP Enterprise Extension Set
Composite Applications
mySAP ERP powered by SAP NetWeaver
PEOPLE INTEGRATIONMulti Channel Access
Portal Collaboration
INFORMATION INTEGRATION
Master Data Mgmt
Bus. Intelligence Knowledge Mgmt
PROCESS INTEGRATIONIntegration Broker
BusinessProcess Mgmt
J2EE ABAP
DB and OS Abstraction
Self Service Procurement
SAP R/3 Enterprise
SAP R/3 Enterprise Core
SAP Enterprise Extension Set
Strategic Enterprise Management
Internet Sales
Self Services
… and more
Additional Components
SAP ECC Core
SAP ECC Extension Set
Industry Enablement
Strategic Enterprise Management
Self Services
Additional ComponentsSelf Service Procurement
Internet Sales
SAP ERP Central Component
SAP NetWeaver™
Co
mp
osi
te A
pp
licat
ion
Fra
mew
ork
APPLICATION PLATFORM
Life C
ycle Mg
mt
PEOPLE INTEGRATIONMulti Channel Access
Portal Collaboration
INFORMATION INTEGRATION
Master Data Mgmt
Bus. Intelligence Knowledge Mgmt
PROCESS INTEGRATIONIntegration Broker
BusinessProcess Mgmt
J2EE ABAP
DB and OS Abstraction
… and more
SAP 2004, 30
BW 2.1c- Content Release
Roadmap
SAP NetWeaver 04- Extending the reach- Planning and forecasting- SAP NetWeaver integration
BW 2.0- Operational Data Store- Rich Functionality- Web Reporting
BW 3.0- Easy of use- Openness- Tool Integration
SAP NetWeaver xx- Expanded Enterprise- Active BI- Advanced user experience
BW 1.2- All-in-one- Application Integration- Business Content
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action
Business Challenges for Smart Enterprises
Meeting the Key Business Challenges
SAP 2004, 32
SAP NetWeaver™ at Aventis
SAP 2004, 33
SAP NetWeaver™ at Dow Corning
SAP 2004, 34
The SAP BI Advantage
SAP NetWeaver delivers the complete, end-to-end, reliable and open BI solution,
enabling the smart enterprise.
Enabling of accurate, faster and actionable information
Compliance with industry regulation thus mitigating business risks
Connecting Corporate Goals, Objectives and Strategies to an individual contributor level
Information Democracy and Self-Service
Predictive analytics and smarter applications to grow the business
Quick wins and faster Return on Investment
