SAP NetWeaver: Enabling the Smart Enterprise

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SAP NetWeaverEnabling the Smart Enterprise

• Lothar SchubertSAP Labs Palo Alto,
  LLClothar.schubert_at_sap.com

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Business Challenges for Smart Enterprises
Meeting the Key Business Challenges
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action
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Business Challenges for Smart Enterprises
Meeting the Key Business Challenges
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action
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Few Companies Manage to Stay on Top
Companiesin SP index
500
thosestill re-maining
thosethat out-performed SP index overall
74
12
1957
1998
1998
Source SP Index, McKinsey, MMG
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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
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The Winning Strategy
GROWTH THROUGH INNOVATION
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Business Process
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Departmental Perspectives
its just one missed sale
will be backin inventory
extra effort costs
not a keycustomer
???
see wait
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The Bigger Picture External and Internal
Pressures
Competitive Forces

• Price competition
• Vertical integration

Macro Economical Trends

• Labor market
• Interest rates

• SOX
• Basel II

• Demographics
• Buying behavior

Compliance Requirements
Market Trends
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Integrated Management Processes

• Corporate Strategy
• Increase quality of service
• Drive transparency
• Invest in innovation

• Strategic Planning
• Scenario simulation
• Cash-Flow Forecast

• Management
• Goal setting
• Alignment of interest
• Goal measurement

• Perform. Management
• Operational planning
• Process optimization
• Operational execution

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Business Process
its a missedsale
will be backin inventory
extra effort costs
not a keycustomer
???
see wait
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Business Process
Defection Risk
Inventory Forecast
CLTV
Returns Per Customer
Accuracy
Delivery Performance
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Business Process
Defection Risk
Inventory Forecast
CLTV
Returns Per Customer
Accuracy
Delivery Performance
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5 Key Business Challenges

• 1. Execution not aligned with Corporate Strategy
• Corporate strategy not communicated clearly
• Individual objectives not aligned with strategy
• Poor measurement, and no corrective actions

• 2. Ineffective Decision Making Processes
• Decisions delayed, or made on gut feel only
• Key stakeholders not involved
• Solid information only available to small elite

• 3. Increasing Competitive and Market Pressures
• Lack of insight into markets and trends
• Opportunities frequently missed

• 4. Compliance Requirements
• Calls for transparency
• Increasing criticality of trustworthy data

• 5. Budget Constrains
• Need to do more with less, and need to justify
  expenditures

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Business Challenges for Smart Enterprises
Meeting the Key Business Challenges
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action
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Challenge 1 Execution Not Aligned With Corporate
Strategy
Less than 10 of strategies effectively
formulated are effectively executed. Fortune

• Aligning Strategy with Execution requires
• Common set of Metrics, KPIs and Benchmarks
• Balanced Scorecards
• Solid and integrated planning framework
• ? Corporate Performance Management

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Challenge 2 Ineffective Decision Making Processes
Source SAP

• Improved Decision Making requires
• Reliable, up-to-date and easily accessible
  information
• Context, Guidance, and Collaboration
• Information actionable and in consumable format
• Self Service and Information Democracy

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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

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Challenge 4 Compliance Requirements
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 Management of Internal Controls (MIC)
Reporting, Section 404

• 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

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Challenge 5 Budget Constrains
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

• 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

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Meeting the 5 Key Business Challenges
1. Execution not aligned with Corporate
Strategy ? Corporate Performance Management
2. Ineffective Decision Making Processes ? Self
Service and Information Democracy
3. Increasing Competitive and Market Pressures ?
Smart people using smart applications
4. Compliance Requirements ? Reliability,
completeness and transparency
5. Budget Constrains? Buy from a strategic
partner, dont build
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Business Challenges for Smart Enterprises
Meeting the Key Business Challenges
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action
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The Business Intelligence Platform
Web Presentation/Portal/Mgmt Reporting
Presentation
Consolidation
Modeling and Optimization
Ad Hoc Query and Reporting
Statutory Reporting
Balanced Scorecard
CPM Applications
Budget Plan/Forecast
Business Proc. Management
Content Management
Knowledge Management
DataMart
DataMart
DataMart
DataMart
BI Infrastructure
Data Warehouse
Integration Broker
Data Sources
ERP/CRM/SCM/External Sources
Architecture Source Gartner (Managing Corporate
Performance What you need to know Lee
Geishecker Frank Buytendijk, 4/04)
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SAP NETWEAVER
ONE PLATFORM ONE PRODUCT
Open integration and applicationplatform that
enables change!
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
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Accelerating NetWeaver Adoption with IT Practices

High
Right-time data access Implement XI
Reports for real-time data to complement the
batch-oriented data access of analytic
applications and operational reporting
Collaboration Implement Collaboration Rooms
Value
Share documents collaborate with colleagues for
planning and resolution of business issues
Ability to Change your Business
Information Delivery Implement Portal
Low cost distribution of personalized reports and
alerts to a wide audience
Reports Implement BW Provide periodic operational
reports to executives from multiple source
Applications Application Services Platform
Integration
Low
High
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Business Intelligence Overall Solution
Business Explorer
Enterprise Portal
3rd Party Tools
Supply Chain Optimization
Performance Mgmt. Capabilities
Strategy Development
Tax Treasury Mgmt.
Perform. Mgmt.
HR Mgmt.
Portals
Compliance Rep./ Risk Mgmt.
Desktop
Email Report
CRM Credit Mgmt.
Hard Copy Reports
Info Cube
Mobile Devices
Data Access Services
Increasing Info Granularity
BU
Source System
BU 1
BU 2
Integration, Messaging and Transport Services
ERP, CRM, SCM, HCM Legacy
BU x
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Business Intelligence Overall Solution
Business Explorer
Enterprise Portal
3rd Party Tools
Supply Chain Optimization
Performance Mgmt. Capabilities
Strategy Development
Tax Treasury Mgmt.
Perform. Mgmt.
HR Mgmt.
Portals
Compliance Rep./ Risk Mgmt.
Desktop
Email Report
CRM Credit Mgmt.
Hard Copy Reports
Info Cube
Mobile Devices
BG1
Increasing Level of Standardization
BW
SAP BW
BGx
BW
BG
Data Access Services
Increasing Info Granularity
Data Managagement Process Organization
BU
Source System
(Maintenance of Data Enterprise Data Model,
Reference Data, Policies, and Procedures)
BU 1
BU 2
Integration, Messaging and Transport Services
ERP, CRM, SCM, HCM Legacy
BU x
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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
• KPIs, 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

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mySAP ERP powered by SAP NetWeaver
mySAP ERP Edition 2004
Additional Components
mySAP ERP Edition 2003
Self Service Procurement
Additional Components
Internet Sales
Application
Self Services
and more
Self Service Procurement
Composite Applications
Internet Sales
SAP ERP Central Component
Strategic Enterprise Management
Self Services
and more
SAP R/3 Enterprise
Strategic Enterprise Management
SAP R/3 Enterprise
SAP ECC Extension Set
SAP Enterprise Extension Set
SAP Enterprise Extension Set
SAP R/3up to 4.6C
SAP ECC Core
Industry Enablement
SAP R/3 Enterprise Core
SAP R/3 Enterprise Core
Application
SAP Basis
SAP Web Application Server
SAP NetWeaver 04
SAP NetWeaver
PEOPLE INTEGRATION
PEOPLE INTEGRATION
Multi Channel Access
Multi Channel Access
Portal
Collaboration
Portal
Collaboration
INFORMATION INTEGRATION
INFORMATION INTEGRATION
Bus. Intelligence
Knowledge Mgmt
Bus. Intelligence
Knowledge Mgmt
Master Data Mgmt
Master Data Mgmt
Life Cycle Mgmt
Life Cycle Mgmt
Composite Application Framework
Composite Application Framework
PROCESS INTEGRATION
PROCESS INTEGRATION
Integration Broker
BusinessProcess Mgmt
Integration Broker
BusinessProcess Mgmt
Technology
APPLICATION PLATFORM
APPLICATION PLATFORM
J2EE
ABAP
J2EE
ABAP
DB and OS Abstraction
DB and OS Abstraction
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Roadmap

• BW 3.0
• Easy of use
• Openness
• Tool Integration

• BW 2.0
• Operational Data Store
• Rich Functionality
• Web Reporting

• SAP NetWeaver xx
• Expanded Enterprise
• Active BI
• Advanced user experience

• BW 1.2
• All-in-one
• Application Integration
• Business Content

• SAP NetWeaver 04
• Extending the reach
• Planning and forecasting
• SAP NetWeaver integration

• BW 2.1c
• Content Release

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Business Challenges for Smart Enterprises
Meeting the Key Business Challenges
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action
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SAP NetWeaver at Aventis
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SAP NetWeaver at Dow Corning
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The SAP BI Advantage

• 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

SAP NetWeaver delivers the complete, end-to-end,
reliable and open BI solution, enabling the
smart enterprise.
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SAP NetWeaverEnabling the Smart Enterprise

• Lothar SchubertSAP Labs Palo Alto,
  LLClothar.schubert_at_sap.com