1. IBM The Smart Systems Roadshow SAP Business Suite: Integrated Enterprise Applications To Lower Costs, Improve Insights And Capture New Opportunities Chandra Shekhar Bhartiya Head – Southeast Asia SAP Upgrade Competence Center SAP Asia 5 th Aug 2010
10. SAP Solutions Helped to Master The Last Economic Waves Competitive Differentiation Business Process Reengineering Operational Efficiency Business Network Transformation 1990s 2000s 2010s Value of Information Technology Process automation Process innovation Process collaboration Evolution of SAP Solutions Economic Trends and Priorities SAP CRM SAP SCM SAP SRM ...
11. Value Proposition of Innovate Business Business Operations Strategy and Execution Disconnects Function and Process Disconnects IT Application Disconnects CIO The Key: Convert Insight Into Action – The Problem: Disconnects Within Business, IT PLM SRM ERP SCM CRM Head, HR CFO CEO COO VP Products DESIGN VP Procurement SOURCE VP Supply Chain SUPPLY MAKE VP Mfg SELL VP Sales SERVICE VP Service
12. Value Proposition of Innovate Business Converting Insight Into Action Strategy and Execution Aligned Functions and Processes Streamlined Applications Harmonized VP Products VP Procurement MAKE VP Mfg SERVICE VP Service SELL VP Sales VP Supply Chain DESIGN SOURCE SUPPLY Process Excellence Vision: IT & Business aligned around processes Head, HR CFO CEO COO CRM ERP PLM SRM SCM
13. Today’s world need new levels of information Which Significantly Impacts Our Customer Everyday
26. Accelerating Lead to Cash Implementable Step: Perfect Order Processing Sales Force Channel Partners Supply Chain Finance Perfect Order Processing Global Account Management Rebates Billing Order Processing Order Status Tracking Order Fulfillment Ship & Debit Price Protection Channel Inventory Point-of-Sale Management Order Capture Global Available to Promise [2] Bridge to Value Scenario “Logistics and Fulfillment Management” [1] Bridge to Value Scenario “Collaborative Demand & Supply Planning” [2] [1] [1] Credit Mgmt & Check Collections and Payments Head of Sales Operations Head of Sales & Marketing SAP SCM SAP ERP SAP CRM SAP BI SAP Price & Margin Mgmt by Vendavo
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28. The Business Suite - A Springboard to Value Enabling You to Realize Value Across SAP’s Entire Portfolio
47. Get Started SAP Upgrade Info Center ( www.service.sap.com/upgrade ) Source: MOVE/ GUO SAP Upgrade specific information Statistics or screen shot SAP ERP Solution Browser SAP Upgrade Newsletter SAP Upgrade Road Map
The SAP Company Stability SAP’s Unique Heritage Maximizing global performance and opportunities takes global thinking Being one of the most pervasive business process pioneers creates unique insight A true Single Suite foundation delivers implicit knowledge SAP has unparalleled industry experience focused on solving your most challenging problems SAP and its Partners are committed to earning and maintaining your loyalty and trust
The SAP Company Stability SAP’s Unique Heritage Maximizing global performance and opportunities takes global thinking Being one of the most pervasive business process pioneers creates unique insight A true Single Suite foundation delivers implicit knowledge SAP has unparalleled industry experience focused on solving your most challenging problems SAP and its Partners are committed to earning and maintaining your loyalty and trust
History of SAP’s evolution tied to the trends shaping the world – from process automation -> process improvements/best practices -> flexibility/innovation
08/15/10 RC: why? Because of where the issues/obstacles lie. And the roll IT can play in addressing these issues/obstacles. The key in adapting your business to be in synch with the current operating environment is to gain visibility and actionable insight into market, customer, and business dynamics such that you are able to design the right strategies and tactics for your company. Secondly you need to be able convert that insight into precise action that is in line with the business strategy. Finally, you need to be able to monitor the execution of that strategy to make adjustments as required. Execution of the strategy is where business processes come in . In today's increasingly networked world, business processes must not only be designed to be efficient, but they must also be designed for flexibility to be able to connect to network participants and incorporate new practices and learnings. With increasing complexity and network transformation, companies will now need to deploy these processes across their supply network: Here is what is needed from a business perspective. Innovation must be captured from any node in the network and propagated faster across the network. Each function in the network must operate at optimal efficiency, without compromising overall network efficiency and costs Each participant ( owner, partner, or supplier) in the network now must be held to the same standards of responsiveness to customers and stakeholders. To support these requirements, lines of businesses must now work both closely internally across various functions , but also externally across partners to support corporate strategy. This creates new requirements for Lines of Businesses (who now cannot simply sub-optimize their own areas, but must ensure seamless integration with other parts of the "extended" value chain (internal and external). These new LOB and corporate strategy requirements translate into new requirements for IT who cannot simply deliver capabilities to satisfy a single line of business, or a particular business function, but ensure cross functional process continuity ( think value scenario) that is aligned to the overall company strategy and also serve the specific deep capability (think functionality) desired by each individual process step ( think Implementable step). The current IT landscape consists of plethora of diverse applications that may provide deep functional coverage for a particular area, but often come with different underlying architectures and hidden costs. In particular, knitting these siloed applications with multiple interfaces and point-point integration techniques together to execute business processes for value extraction relies on expensive middle-ware and puts the onus of integration, testing and validation on the customer. This adds inherent risk to IT deployment, increases the overall time to value of the investment, and drastically increases integration needs across multiple solutions and related on-going support and maintenance costs. Furthermore, it decouples the priorities between Line of Business and IT owners creating further divisions between strategy and execution.
08/15/10 To convert Insight into action, a business process approach is needed as a primary motivator. Using this approach, different functional line of business can come together and work with strategy teams to prioritize and define business processes that most effectively match corporate strategy and differentiation into the market. A common agreement on the key business processes between these groups helps aligns strategy and execution. Once key processes have been prioritized from an execution perspective, line of business owners can collectively request that IT deliver the best process, i nstead of each line of business requesting that IT support their functional areas with the best applications. Taking this lead, IT can work on selecting the right applications such that they deliver the best processes aligned to the requirements of the line of business owners, which in turn align to corporate strategy. For IT, this changes the operating paradigm. IT is now viewed as part of the value equation and as an enabler to the business instead of being separated from the business. Using a business process as a framework , for investments and deployment instead of traditional application focus or functional thinking, IT can normalize requests for support from across several departments and drive standardization, centralization, and lower costs of ownership across the organization
KEY MESSAGES and Talking Points: The combination of various market trends and the general challenge of doing business globally are placing companies under extreme pressure to meet business objectives and share-holder expectations. As already discussed the current economic climate is totally unpredictable, hence companies must be aggressive in cost savings measures and very selective in the opportunities they decide to invest in. Customer exectations are also extremely high and based on economic factors (ex. Price of gasoline) those customer and market demands can be extremely volitile leading to spikes in demand for new products and services one-day that all but disappear the next day. (ex. Hybrid car demand in US as the gas price rose and then that demand went down as gas prices fell by 2.5 times.). Also, as companies try to grow their business to support a broader product and service portfolio the difficulty of finding and retaining qualified people is extremely challenging. In many industries (ex. Chemicals, Oil&Gas) the workforce of knowledgable employees is aging, and is not being replinished from university at a rate required to keep a fresh pool of necessary talent to operate these complex global businesses. Given many companies are not able to meet these challenges, customers are losing confidence and trust, which ofter results in companies making poor, reactive decisions without necessary visibility and understanding of the total impact if will have on their business.
What applications and software are available now in SAP Business Suite 7? SAP Business Suite core applications Enhancement package 4 for SAP ERP 6.0 * SAP Customer Relationship Management (SAP CRM) 7.0 SAP Supplier Relationship Management (SAP SRM) 7.0 SAP Supply Chain Management (SAP SCM) 7.0 SAP Product Lifecycle Management (SAP PLM) 7.0
Here you can see a brief overview about the evolution of the SAP ERP architecture. With SAP R/3 4.6 and 4.7 (“Enterprise”) the SAP Web Application Server (or “Basis”) based on ABAP was the foundation of the ERP applications. There was no SAP Netweaver, also the SAP industry solutions were Add-Ons on top of the core applications, at that time. SAP started to support Unicode with SAP R/3 4.7. Since SAP R/3 Enterprise SAP developed new applications and shipped them as Enterprise Extensions. A concept which was based on smaller software packages to deliver new functionality to customers. With SAP ERP 6.0 SAP provides a solution which is built on top of SAP Netweaver, e.g the SAP Enterprise Portal can be leveraged as a unified User Interface (UI) for all applications, also the SAP Business Intelligence and SAP Process Integration are integral parts of SAP’s ERP solution. The application was also enhanced tremendously, with SAP ERP nearly all industry solutions became part of the application core plus tons of new functionality is ready to use. Due to the new Enhancement Framework introduced with SAP Netweaver 7.0 it was possible to ship new functionality in a more granular way. These new functions are now included in the Enhancement Packages which are the successor of the Enterprise Extensions
Let’s talk about what’s new with the Suite 7 There are three primary areas of innovation in SAP Business Suite 7 First we deliver the power of INSIGHT. We’re giving user easier access to data and information through the system, we’ve streamlined the ability to launch report and give users operational analytics to make smarter decisions. Second we’ve deliver the power of EFFICIENCY. We’ve taken the notion of end-to-end business processes to a whole new level. The applications are now synchronized, available at the same time, all on one common platform and the ability to support new collaborative business models, shared-services or outsourcing arrangement is easier that ever. And last, we’re giving customer the power of FLEXIBILITY. The out-of-the-box, adaptable best practices targeted as specific business challenges, and now packaged to address New Reality challenges in a step-by-step fashion. Value Focused Do more with less - frees resources and capital Engages processes with customers and suppliers Eliminates inefficient business processes Designed for Speed Incremental investments, fast payback Adapts to changes quickly Leverages existing processes and investments
Motivation User Experience is a key element when it comes to user productivity. Heterogeneous user interfaces and complex transactions significantly reduce user satisfaction and user productivity while easy-to-consume applications providing personalized user interfaces can boost user productivity and satisfaction. Software needs to work the way the user does, not vice versa. SAP Business Suite is unifying the user experience to make end user application consumption easier and to accelerate and simplify the adaption of SAP user interfaces. Simplification of user experience is taking place in various dimensions: Aligning look and feel All SAP standard UI Clients (SAP NetWeaver Portal, SAP NetWeaver Business Client, CRM UI and SAP GUI) are available in the new SAP Signature design harmonizing the look of applications throughout the SAP Business Suite. In order to ensure that users only have access to those transactions for which they have authorization, most organizations use roles to group their users' system tasks and ensure compliance concerning segregation of duty and related issues. A role in the portal enables users to access applications and transactions that they require to carry out the tasks of a particular role in the enterprise. The applications and transactions can be accessed as services in the portal, regardless of the back-end system in which they are located. A role can comprise several Work Centers which bundle the services for a particular task within a role. Role-based Work Centers bring together the information and tools to complete specific activities. They offer role-specific alerts, work lists, monitors etc. and guide the user to the right actions. A Work Center is the starting point for an employee's work in a particular task area. SAP Business Suite provides a harmonized role structure in SAP NetWeaver Portal Content Directory with work and control centers Applications can be launched from work lists in work centers Reports and analytics applications can be launched centrally from the report launchpad. Navigation between applications is leveraging object-based navigation allowing for context sensitive navigation based on source object and user role. Standard UI-Technology Web Dynpro ABAP is the standard technology for new User Interfaces in the SAP Business Suite. (One exception to this rule is SAP CRM, which is based on Business Server Pages.) In addition, Adobe Flex controls can be embedded in Web Dynpro ABAP in order to add dynamic and interactive capabilities to the user interface where necessary. Providing efficient tools for UI-development and adoption on WD ABAP Two toolsets are important for building applications within the SAP Business Suite. The Floorplan Manager provides a highly-configurable framework for easy and efficient application development and adaptation. Consistency across applications as well as 100% UI compliance can be guaranteed by means of predefined elements such as floorplans, toolbars and generic User Interface (UI) building blocks. Central functionality like navigation, messaging and personalization is embedded in the framework and can be simply defined by APIs without duplication of effort or code. Customers are able to easily adapt delivered User Interfaces to their specific needs modification-free by simple UI configuration. POWER List (Personal Object Work Entity Repository) is a central UI Building Block for Control-/ Workcenter development in the SAP Business Suite. With the Power List framework (also known as POWL), SAP customers can now take advantage of a central homogenous framework for work lists and simple list reporting allowing users to easily retrieve structured information, but also to create and adapt own work lists based on their individual needs. Benefits Simplified User Experience in SAP Business Suite leads to high user productivity (more transactions in less time) and higher end-user satisfaction. Reducing the number of UI Technologies in the SAP Business Suite and providing efficient tools for UI-development and adoption translates into lower cost for customers to personalize, adapt and adopt SAP user interfaces. Proof Points Various new Web Dynpro ABAP standard applications have been delivered throughout the SAP Business Suite including SAP ERP (e.g. Talent Management, Sales Order Management, Procurement, PLM Product Development), SAP SCM (e.g. Supplier Network Collaboration, Transportation Management), SAP SRM (User Interface changed to Web Dynpro ABAP). SAP will continue to add new Web Dynpro ABAP Applications with future SAP enhancement packages.
Let’s talk about what’s new with the Suite 7 There are three primary areas of innovation in SAP Business Suite 7 First we deliver the power of INSIGHT. We’re giving user easier access to data and information through the system, we’ve streamlined the ability to launch report and give users operational analytics to make smarter decisions. Second we’ve deliver the power of EFFICIENCY. We’ve taken the notion of end-to-end business processes to a whole new level. The applications are now synchronized, available at the same time, all on one common platform and the ability to support new collaborative business models, shared-services or outsourcing arrangement is easier that ever. And last, we’re giving customer the power of FLEXIBILITY. The out-of-the-box, adaptable best practices targeted as specific business challenges, and now packaged to address New Reality challenges in a step-by-step fashion. Value Focused Do more with less - frees resources and capital Engages processes with customers and suppliers Eliminates inefficient business processes Designed for Speed Incremental investments, fast payback Adapts to changes quickly Leverages existing processes and investments
Let’s talk about what’s new with the Suite 7 There are three primary areas of innovation in SAP Business Suite 7 First we deliver the power of INSIGHT. We’re giving user easier access to data and information through the system, we’ve streamlined the ability to launch report and give users operational analytics to make smarter decisions. Second we’ve deliver the power of EFFICIENCY. We’ve taken the notion of end-to-end business processes to a whole new level. The applications are now synchronized, available at the same time, all on one common platform and the ability to support new collaborative business models, shared-services or outsourcing arrangement is easier that ever. And last, we’re giving customer the power of FLEXIBILITY. The out-of-the-box, adaptable best practices targeted as specific business challenges, and now packaged to address New Reality challenges in a step-by-step fashion. Value Focused Do more with less - frees resources and capital Engages processes with customers and suppliers Eliminates inefficient business processes Designed for Speed Incremental investments, fast payback Adapts to changes quickly Leverages existing processes and investments
Despite intense Margin Pressure, as discussed earlier, cost cutting alone will not help your business manage the downturn and position for the long term. Your organization is still likely looking for entry into new markets, introducing products more in line with the current needs of the market place, working with new suppliers, retaining the best customers, and accelerating key product innovation and delivery cycles. Through all this, compliance and quality must still be maintained and in some cases, prioritized. While you may have the right strategy, the difference is how to convert that strategy into action. That is where business processes come in. In today's increasingly networked world, business processes must not only be designed to be efficient, but they must also be designed for flexibility to be able to connect to network participants. With increasing complexity and network transformation, companies will now need to deploy these processes across their supply network: Here is how things are changing. Innovation must be captured from any node in the network and propagated faster across the network. Each function in the network must operate at optimal efficiency, without compromising overall network efficiency and costs Each participant ( owner, partner, or supplier) in the network now must be held to the same standards of responsiveness to customers and stakeholders As a result, lines of businesses must now work both closely internally across various functions, but also externally across partners to support corporate strategy. This creates new requirements for Lines of Businesses (who now cannot simply sub-optimize their own areas, but must ensure seamless integration with other parts of the "extended" value chain (internal and external). These new LOB and corporate strategy requirements translate into new requirements for IT who cannot simply deliver capabilities to satisfy a single line of business, but ensure cross application process continuity ( think value scenario) that is aligned to the overall company strategy and also serve the specific deep capability (think functionality) desired by each individual process step ( think Implementable step).
KEY MESSAGE: This slide provides a high-level summary of Accelerated Savings In Procurement. There are numerous customer examples of where this solution what deployed, hence select customers from the region you are presenting to give credibility to this example. SUPPORTING POINTS: Here are a few customer examples and high-level results of deployments for this solution. It should be noted these were not examples of customers that made a buy decision for the package, but were examples of the value obtained by deploying the solution. Revlon 250% increase in COGS savings over three years 300% increase in managed spend, using same staff levels Live implementation in three weeks Bristol-Myers Squibb $9.5 billion under management 1,000 RFx and 1300 auctions annually Average cycle time 6 weeks per event WE Energies Average event savings of 22% Established companywide sourcing process Live implementation in one month
This excerpt with the CIO of a very large manufacturing firm, explains the essence of what most CIO’s are facing… the need to stabilze their core systems, to make sure that this is done with minimal downtime, and yet to still deliver ongoing innovation.
This is a summary of key innovations that will be delivered in the first five enhancement packages for mySAP ERP. It’s important to note that this is a very high level depiction, and does not portray all of the functionality coming in each enhancement package. As with enhancement package 1, as we near the ramp-up process for each enhancement package, a great detail of additional information regarding the particular innovations in that package. The first enhancement package shipped in December, 2006. Additional details are provided on the next slide… We are taking an end-to-end process focus as we develop and deliver enhancements. This enables us to more effectively meet the needs of our customers, and allows them to make informed choices about what functionality to adopt, and when. It is also important to note that while we have identify focus industry segments or sectors in this summary, additional functionality will be delivered in each enhancement package across various industry sectors .
SAP ERP release strategy “Innovation without disruption” (presentation)