jens_baumann.pdf

SAP Business Suite 7SAP Business Suite 7Delivering Process Excellence for the New Reality

Dr. Jens Baumann, SAP AG

September 2009

New Market RealityTransforming the Way the World Worksg y

C ll b tiCash

Agility

Collaboration ManagementBusiness Networks g y

Information Explosion ROI

Networks

Search for Value

Speed of Change for ValueChange

Responding to the Current Market RealitiesAre there opportunities to leapfrog the competition in times of crisis?

Management is asking

From our experience, targeted (IT) investments in many areas

t ffi i i d th th t“g gme to stop spending.

Period.generate efficiencies and revenue growth that surpass savings from straight cost reductions...

Investing in IT During a Downturn, McKinsey, Fall 2008

I ti i di iti i Investing in digitizing processesdramatically increases competitive intensity: … concentration … performance spread … market turbulence ….

“Investing in the IT That Makes a Competitive Difference,

Harvard Business School, July 2008

Invest with the End – End Process in ViewInvest with the End – End Process in View

The Key: Convert Insight into ActionThe Problem: Disconnects within Business, IT

Business

Head, HR CFOCEO COO

Strategy and Execution Disconnects

DESIGN MAKE SUPPLY SELLSOURCE SERVICE

Operations

DESIGN

VP Products

MAKE

VP Mfg

SUPPLY

VP, Supply Chain

SELL

VP, Sales

SOURCE

VP Procurement

SERVICE

VP, Service

Function and Process Disconnects

IT

PLM SRM MFG SCM EAM CRM

Application DisconnectsCIO

Process Excellence for The New RealityConvert Critical Insight into Precise Action

From Strategy through Execution …

COO

COOCFO

Insight ActionBusiness issues are process challengesSilos are barriers to process excellenceSilos are barriers to process excellenceCollaboration essential component of process excellenceStep-by-step approach – avoid the big bang

The Way Forwardy

SAP Business Suite 7SAP Business Suite 7

© SAP 2009 /

SAP Business Suite 7 Insight to Action through Process Excellence

Application Centric:Integrate Software

Value Centric:Enable Insight to Action

Through Process ExcellenceThrough Process Excellence

SAP PLMProduct and

Service High PerformingSAP PLM

SAP SRMSAP CRM

SAP ERPFinancials

Human ResourcesCorporate Services

Leadership High Performing Assets

Operational Excellence

SAP SCM

Corporate ServicesOperations Management Superior

Customer Value

Best People and

SAP NetWeaverFinancial

Excellence

Responsive Supply

Networks

People and Talent

- Integrated applications - Different release strategy- Strong Technology platform

• Pre-Integrated End-to-end business processes

- Integrated release strategy- Easier Innovation Adoption (EhP)

© SAP 2007 /

- Easier Innovation Adoption (EhP)- Modularized to improve affordability and

time-to-value


SAP Business Suite NetWeaver CompositionBusiness Objects

Indu

stry

NetWeaverIntegration Eh

P

SRM PLMSCMCRM ERP

EhP

Integration E E

Application Lifecycle Management, Identity Management

© SAP 2008 / Jim Hagemann Snabe/


SAP Business Suite NetWeaver CompositionBusiness Objects

Pre-integrated Industry specific

Processes

For Increased Business and IT Efficiency


P

EhP

IndustryAdd-OnCRM SRM SCM PLM ERP

Integration E E




More Harmonized UI’s Across

Applications and

Embedded analytics for contextualized

Insight

SAP Business Suite

pp cat o s a dprocesses

For Increased User

Productivity

For informed decision making

and Control

NetWeaver CompositionBusiness Objects


Processes



P

EhP


Integration E E



Embedded Analytics: Role Specific Process Insight for Better Decisions

Tight application integration of analytical components



Applications and


Insight

SAP Business Suite


For Increased User

Productivity


and Control



Processes



P

EhPBest-Run NOW

k t


Integration E Epackages to solve immediate

painApplication Lifecycle Management, Identity Management

For Value Focused Fast


Focused Fast Deployments

Avoid The Big Bang : Rapid Time to Value Consume One Step at a Time, Solve Immediate Pain Points

20+ BEST-RUN NOW PACKAGES

Accelerate Savings in Procurement

Manage the Workforce

Efficient Receivables & Collections

LiquidityManagement

Starting Points to End-to-End Processes

Procurement the WorkforceCollections Management

gPackaged Implementation Services

Special Financing

FINANCE SOURCE MAKE SUPPLY SERVICE SELL

VP Finance

VPProcurement

VPMfg

VP Supply Chain

VP Service

VP Sales

© SAP 2009 /



Applications and


Insight

SAP Business Suite Continued SOA


For Increased User

Productivity


and Control



Continued SOA enablement and

innovation

For flexible process and business agilityProcesses

Flexible, Modular Upgrades to minimize

di ti


and business agility


P

EhP

disruption

Best-Run NOW k t

IndustryAdd-On For faster, focused

solution evolution with lower costs

CRM SRM SCM PLM ERP

Integration E E

Continuous Innovation for Line of Business In

Your Industry

packages to solve immediate

painApplication Lifecycle Management, Identity Management

For Value Focused Fast For performancePre-Integrated End-to-End Processes


Focused Fast Deployments

For performance advancement in core industry processes

Pre-Integrated End-to-End ProcessesEasy to consume, faster to deploy

End of Upgrades As You Know Them..Reduce Cost of Consumption with Enhancement Packages

Traditional upgrades Enhancement Packages

EhA EhBEhA EhB

Enhancement Package

User interface

EhA EhBEhC EhDEhE EhF

EhA EhBEhC EhDEhE EhF

MES Integ. EBPP

Sales order

HCM forms

Credit Report

Budget Executi

on

FunctionalityUser interface

Enterprise servicesFunctionality

Sales orderManagementEnterprise services

“All ” “Pi k d h ”“All or none”Impact assessment, change, testBroad effects on the business

“Pick and choose”Self-contained innovationIsolatable impact & testing effort

Business case for entire release Business case for target process

© SAP 2009 /

Sustaining Competitive g pAdvantage

Process Excellence ExamplesExamples

© SAP 2009 /

Sustaining Competitive Advantage with SAP Focus on your core priorities

Seven Opportunities to Sustain A Competitive Advantage with SAPp g

1. Manage Corporate Spend

2. Strengthen Cash Flow and Liquidity

3. Maximize Skills and Talent

4. Manage Responsive Supply Networks

5. Drive Superior Customer Relationships

6. Ensure Time-to-Profit of Products & Services

© SAP 2009 /

7. Manage Enterprise Risk


Seven Opportunities to Sustain A

1 Manage Corporate Spend

ppCompetitive Advantage with SAP








© SAP 2009 /


Small Improvements in Spend Management Can Translate to Big Improvements in Marging g

The Importance of SpendAnalytics and Sourcing

Costs unseen by traditional reporting Impossible to manage without the proper toolsSignificant cost reduction with the gright insight and actions

Silos Impede Cost-Savings Initiatives

Finance Operations Contracts Procurement

How can we reduce costs in sourcing and procurement?

Where can we get leverage with our

suppliers?

How can we get more spend

under contract?

I need it now…is there a suitable

supplier contract?p pp pp

Poor insight and siloed execution prevents meaningful cost savings in sourcing and procurement

© SAP 2009 /

Integrated Sourcing and Procurement with SAPAn End-to-End Process Connecting Finance, Sourcing and Procurement

S i C t tA l i

CFO

ContractsOperationsFinance

P t

Procurement

Sourcing ContractsAnalysis Procurement

Strategic Purchasing Contract

NegotiationHead of

Category Strategy Pl i

Consolidated Spend

R ti

Template and Clause Library

Supplier Compliance

A l i

Bid Evaluation and Awarding

Supplier Management

RFX Preparation d P i

Operational Purchasing

gHead of Procurement

Head of Procurement

PlanningReporting

Buyer Compliance Reporting

Purchasing Policy and

Compliance Analysis

y

Contract Repository

Contract Execution

Financial Settlement

Purchase Order Processing

Source Assignment

Analysis

Batch &Quality

Management

Supplier Evaluation and

Onboarding

gg and Processing

Procurement

Head of Demanding Unit

Demanding Unit Business Unit Compliance Reporting

Goods and Service

Confirmation

Demand Planning and

Creation

SupplierKey Supplier Contact

Contract Negotiation

Order Collaboration Service Entry Invoice

Collaboration

Self-Registration

and Data Administration

Create and Submit Bids

SAP Spend Analysis + SAP Business Suite (Procurement)

© SAP 2009 /

Leading Companies Maximize Savings with Spend Analysis and Strategic Sourcingy g g

$7.5 million in savings through volume discounts. [CPG]

50% improvement in RFQ process l i [Hi h T h]

Simplified raw material specs from 22 to 3 across 15 sites thereby

cycle time [High Tech]

$150 million in procurement-related savings from strategic sourcing [Entertainment]

qualifying for volume discounts

In 12 weeks, classified all spend into a proprietary taxonomy and

f d li li ti sourcing. [Entertainment]performed supplier normalization. Automated to lower cycle time.

Aggregated data from 19 business units 22 source systems at oneunits, 22 source systems at one company to drive strategic sourcing initiatives in 8 categories


Seven Opportunities to Sustain A

1 Manage Corporate Spend

ppCompetitive Advantage with SAP








© SAP 2009 /


Today’s Customers Are Empowered Like Never Before

Democratization of information

Price transparency

Plenty of

informationtransparency

Social networking

Customer

choices and communities

Customer

Shift in negotiation power from Vendors to Customers

Implications

Shift in negotiation power from Vendors to Customers

Evolution from ‘Relationship Management’ to ‘Total Experience Management’

New communications and interaction channels to manage on top of traditional onesNew communications and interaction channels to manage on top of traditional ones

Greater needs for adaptability and responsiveness

Act Immediately, Grow Strategically With SAP

HighOpportunity Available to Deal Planned Supply/ Responsive

High Management Promise Negotiation Demand Networks

End-to-End Process Driven Platform

e

Flexibility for easy adaptation

Modular, plug-and-play

Greater responsiveness

Incremental Value

Strategic Value(hard to replicate)

Rel

ativ

e Va

lu

Value GapIncremental Value(easy to replicate)

R

Tactical and Siloed Solutions

Very expensive to build N:N integrations

Low

Resource intensive and high cost

Slow to change and adapt

Low HighBusiness Maturity

Example of Cross Functional Process : Accelerating Lead to Cashg C

Head of Sales OperationsHead of SalesHead of MarketingHead ofSales & Marketing

Marketing & Lead

CollaborativePipeline Management

Perfect OrderProcessing

Sales and Marketing Planning

Global Account Management

CampaignMarketing

Channel Partners

Marketing &Sales Operations

Lead Management

Resale Tracking Deal

NegotiationOpportunity

Price Analysis

&

Market Development

Funds

Campaign Management

Partner Planning

Marketing Planning

Sales Force Order Management

Accounts and Contacts

Negotiation&

Price Management

Opportunity & Quote

ManagementAccount Planning

SalesPlanning

Setting Funds

Supply Chain

Credit Billi d

DeliveryCollaborative

Demand & Supply Planning

Collaborative Demand &

Supply Planning

[1] Logistics &

Fulfillment Management

Logistics & Fulfillment

Management

[2]

Finance Budgeting Management & Check

Billing and Payment

[2] Bridge to Value Scenario “Logistics and Fulfillment Management”

[1] Bridge to Value Scenario “Collaborative Demand & Supply Planning”

Customers Derive More Value through Accelerating Lead to Cash Business Processes

Lowered order processing costs by up to 70%Improved discount and incentive spend by 12%Able to generate a consolidated monthly Lowered order processing costs by up to 70%Reduced average order entry time to 5 minutesIncreased customer satisfaction levels

Improved discount and incentive spend by 12%Lowered time to confirm orders from 2 days to 2 hoursRaised market awareness by 15%Increased sales order acceptance rate by 20%

Able to generate a consolidated monthly global pipeline report in 94% less timeReduced time to integrate acquisition-related pipeline and customer data by 67%100% consistency of pipeline measures across business units

T d 30 t 35 t f l ’ f ti i t ith th t“ Today, 30 to 35 percent of a salesperson’s face time is spent with the customer. Salespeople spend too much time on administrating, expediting orders, arguing over receivables, and finding late shipments.”

“Jack Welch,

former CEO, General Electric Company

SAP Simplified - Managing the Full Application Lifecycle Application Lifecycle

Require-ments

Monitor applications end-to-endDesignOptimize

ApplicationLifecycle

Manage change without disruption

Minimize planned downtime

Build & TestOperate

yManagement

p

Manage the system landscape

Monitor processes and manageDeploy

Monitor processes and manage risk

Assure Business Continuity in Your Entire Solution Landscape

SAP Service Offering Spans Customer LifecycleFrom Process Excellence to Customer Solutions and Value

How do I keepup and runnnig?

What is the ROI and payback of this solution to me?

How do I train andup and runnnig?SAP

Enterprise Support

solution to me? certify my workforce?SAP

Education

How do we install and utilize the product ASAP?

How do I harmonize my landscape and ensure utilize the product ASAP?landscape and ensure

operational efficiencies?

How to Get to SAP Business Suite 7 if You’re Running …g

Install SAP enhancement package 4 for SAP ERP

SAP ERP 6.0SAP ERP 6.0 plus

Upgrade and include SAP enhancement package 4 for SAP ERP

SAP R/3 4.0B¹ and above

pSAP enhancement

package 4 for SAP ERP

SAPP B

usine

SAP PLM 4.0¹and above

Upgrade to SAP ERP 6.0 and include SAP enhancement package 4 for SAP ERP SAP PLM 7.0

UpgradeSAP CRM 4.0¹² and above

SAP CRM 7.0

ess Suite

© SAP 2009 /

SAP SRM 3.0¹and above

SAP SRM 7.0 Upgrade

U d

e 7³

¹Direct upgrade from these source releases to the go-to releases of SAP Business Suite 7 is supported by SAP.

SAP SCM 4.1¹and above

SAP SCM 7.0Upgrade

²If you upgrade from SAP CRM 4.0 or 5.0 to SAP CRM 7.0, customer-specific UIs (including the underlying UI-related coding) have to be migrated separately.³Most industry and supplementary applications are shipped with the SAP Business Suite applications and are included in the respective upgrade. For the versions of industry and supplementary applications that are part of SAP Business Suite 7, but not shipped as part of SAP ERP, SAP SCM, SAP PLM, SAP SRM, or SAP CRM refer to "SAP Release Strategy for Large Enterprises“ on http://service.sap.com/releasestrategy.

Invest in Process Excellence For New Reality SAP Business Suite 7: Insight to Action through Process Excellence

Manage for the downturn Position for the upturn

Costs, Customers, RevenueStandardize IT PortfolioS l i di t i fi t

Capture New opportunitiesContinue

Expand value Step

by Step

Respond to changing trendsCapture New opportunitiesB ild t i bl d tSolve immediate pain first Continue by Step Build sustainable advantage

2 31Enhancement Packages

Not UpgradesIndustry Best Practices

Not GenericConsumable Solutions

Not Big Bang

ENDEND--TOTO--ENDEND Processes, ONEONE Common Flexible Platform

Summary: Why is SAP the Best Partner for the New Reality? y

SAP Provides:SAP Provides:• Industry Only Single Suite Platform• Unparalleled Industry Experience

F ll A li ti Lif C l M t• Full Application Life-Cycle Management• True Global Software Company• Focused on Delivering Solutions and

C stomer Val eCustomer Value

© SAP AG 2009. All rights reserved. /

Thank you!Thank you!

Copyright 2008 SAP AGAll Rights ReservedgNo part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, SAP Business ByDesign, ByDesign, PartnerEdge and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the worldtrademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects S.A. in the United States and in several other countries. Business Objects is an SAP Company. All other product and service names mentioned and associated logos displayed are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business product strategy and/or development Please note thatdevelopments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence.The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages.

Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, ohne die ausdrückliche schriftliche Genehmigung durch SAP AG nicht gestattet. In dieser Publikation enthaltene Informationen können ohne vorherige Ankündigung geändert werden.Einige von der SAP AG und deren Vertriebspartnern vertriebene Softwareprodukte können Softwarekomponenten umfassen, die Eigentum anderer Softwarehersteller sind.SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, SAP Business ByDesign, ByDesign, PartnerEdge und andere in diesem Dokument erwähnte SAP-Produkte und Services sowie die , , pp , pp, , , y g , y g , gdazugehörigen Logos sind Marken oder eingetragene Marken der SAP AG in Deutschland und in mehreren anderen Ländern weltweit. Business Objects und das Business-Objects-Logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius und andere im Text erwähnte Business-Objects-Produkte und -Dienstleistungen sowie die entsprechenden Logos sind Marken oder eingetragene Marken der Business Objects S. A. in den USA und anderen Ländern weltweit. Business Objects ist ein Unternehmen der SAP. Alle anderen in diesem Dokument erwähnten Namen von Produkten und Services sowie die damit verbundenen Firmenlogos sind Marken der jeweiligen Unternehmen. Die Angaben im Text sind unverbindlich und dienen lediglich zu Informationszwecken. Produkte können länderspezifische Unterschiede aufweisen.Die in dieser Publikation enthaltene Information ist Eigentum der SAP. Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, nur mit ausdrücklicher schriftlicher Genehmigung durch SAP AG gestattet. Bei dieser Publikation handelt es sich um eine vorläufige Version, die nicht Ihrem gültigen Lizenzvertrag auc e , u ausd üc c e sc c e Ge e gu g du c S G ges a e e d ese ub a o a de es s c u e e o äu ge e s o , d e c e gü ge e e agoder anderen Vereinbarungen mit SAP unterliegt. Diese Publikation enthält nur vorgesehene Strategien, Entwicklungen und Funktionen des SAP®-Produkts. SAP entsteht aus dieser Publikation keine Verpflichtung zu einer bestimmten Geschäfts- oder Produktstrategie und/oder bestimmten Entwicklungen. Diese Publikation kann von SAP jederzeit ohne vorherige Ankündigung geändert werden.SAP übernimmt keine Haftung für Fehler oder Auslassungen in dieser Publikation. Des Weiteren übernimmt SAP keine Garantie für die Exaktheit oder Vollständigkeit der Informationen, Texte, Grafiken, Links und sonstigen in dieser Publikation enthaltenen Elementen. Diese Publikation wird ohne jegliche Gewähr, weder ausdrücklich noch stillschweigend, bereitgestellt. Dies gilt u. a., aber nicht ausschließlich, hinsichtlich der Gewährleistung der Marktgängigkeit und der Eignung für einen bestimmten Zweck sowie für die Gewährleistung der Nichtverletzung geltenden Rechts. SAP haftet nicht für entstandene Schäden. Dies gilt u. a. und uneingeschränkt für konkrete, besondere und mittelbare Schäden oder Folgeschäden, die aus der Nutzung dieser Materialien

© SAP 2008 /

SAP haftet nicht für entstandene Schäden. Dies gilt u. a. und uneingeschränkt für konkrete, besondere und mittelbare Schäden oder Folgeschäden, die aus der Nutzung dieser Materialien entstehen können. Diese Einschränkung gilt nicht bei Vorsatz oder grober Fahrlässigkeit.Die gesetzliche Haftung bei Personenschäden oder Produkthaftung bleibt unberührt. Die Informationen, auf die Sie möglicherweise über die in diesem Material enthaltenen Hotlinks zugreifen, unterliegen nicht dem Einfluss von SAP, und SAP unterstützt nicht die Nutzung von Internetseiten Dritter durch Sie und gibt keinerlei Gewährleistungen oder Zusagen über Internetseiten Dritter ab. Alle Rechte vorbehalten.

jens_baumann.pdf

Documents

valuesap business suite

end end process

harvard business school

process challenges silos

sap agseptember

identity management

precise action

excellence silos