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SAP University Alliance University Alliance Program Program Daniel Daniel Pantaleo Pantaleo , Director Higher Learning Initiatives , Director Higher Learning Initiatives Amelia Maurizio, Manager University Alliance Program Amelia Maurizio, Manager University Alliance Program

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SAP

University AllianceUniversity AllianceProgramProgram

Daniel Daniel Pantaleo Pantaleo, Director Higher Learning Initiatives, Director Higher Learning Initiatives

Amelia Maurizio, Manager University Alliance Program Amelia Maurizio, Manager University Alliance Program

OutlineOutline

• SAP

• R/3 Software

• University Alliance Program

• Membership Steps

Who is SAP?Who is SAP?

• Founded in 1972 by five engineers in MannheimGermany who wanted to produce and market standardsoftware for integrated business solutions. They calledthis company:Systemanalse and Programmentwichlung.

• The company was renamed and is known today as SAP(Systems, Applications and Products in Data Processing)

* Figure as of January ‘98* Figure as of January ‘98

Who is SAP?Who is SAP?

• From the beginning, SAP developed software that wasmultilingual and multinational

• Develops software for companies of all sizes to ensurethat the whole enterprise runs smoothly

• Largest supplier of business applications software in theworld

* Figure as of January ‘98* Figure as of January ‘98

Who is SAP?Who is SAP?

• Developer of the R/3 Enterprise Business Software

• 4th largest independent software vendor in the world

• Headquartered in Walldorf, Germany

• 26 years of business experience

• > 19,000 employees*

• 9,000+ customers in 95+ countries

• 16,200+ R/3 installation

* Figure as of January ‘98* Figure as of January ‘98

Operating GloballyOperating Globally

* Through Partners

Israel*

South Africa

Europe / Africa / Middle EastEurope / Africa / Middle East

Belgium

Italy

Austria

Denmark

Germany

France

Hungary

Finland

Croatia*

CzechRepublic

Bulgaria*

Cyprus*

Saudi Arabia*

United ArabEmirates*

Ireland

Greece*

AmericaAmerica

U.S.A.

Mexico

Argentina

Brazil

Chile

Venezuela

Colombia

Canada

Peru

Netherlands

Kazakhstan Turkey*

U.K

Portugal

Russian Fed.

Sweden

Switzerland

Norway

Poland

Spain

SlovakRepublicSlovenia

Ukraine

Romania*

Philippines

Singapore

NewZealand

Taiwan

Thailand

Korea

Australia

China

India

Japan

Malaysia

Hong Kong

Indonesia

Asia PacificAsia Pacific

What isWhat is SAP’s SAP’s Market Position? Market Position?

• Market Leader in Enterprise Applications Software with36% market share (AMR, 1998)

• Larger market share than the next five competitorscombined (AMR, 1998)

• Group sales totaled DM $6 Billion, US $3.4 Billion in1997, 81% of which was generated outside Germany

• Focused on sustainable growth

SAP AG, 1997 CPSAP_e November ’97 / 5 SAP AG, 1997 CPSAP_e November ’97 / 5 SAP AG, 1997 CPSAP_e November ’97 / 5

Leading ERP Vendors 1997Leading ERP Vendors 1997

Source: AMR, 1997 Estimated Market Share (January’98)

SAP AG Oracle Applications

J.D. Edwards PeopleSoft Baan

36 %

13 %

7 % 7 % 6 %

40

35

30

25

20

15

10

5

SAP R/3 Customer Installations by IndustrySAP R/3 Customer Installations by Industry

SAP ENGINEERING & CONSTRUCTION 10.5%

SAP HIGH TECH &ELECTRONICS 11.3%

SAP CHEMICALS 9.5%

SAP CONSUMERPRODUCTS 10.3%

Consulting & Professional Services 6.0%

SAP RETAIL 6.3%

SAP PHARMA -CEUTICALS 3.4%

SAP PUBLIC SECTOR 3.4%

SAP OIL & GAS 3.2%

Metal, Paper & Wood Products 2.8%

Services 3.1%

SAP HEALTHCARE 2.3%

SAP BANKING 2.0%SAP MEDIA 2.3%

Others 11.5%

SAP UTILITIES 3.9%

SAP AUTOMOTIVE 4.8%

SAP TELECOM-MUNICATIONS 3.4%

Worldwide

As of 30 June '98 (Total: 13,110)

ERP Software Market - by Revenue

Other27%

SAP AG29%

Oracle-Applications

10%

J.D. Edwards7%

PeopleSoft6%

Baan5%

SSA5%

JBA4%

Marcam3%

Intentia2%

QAD2%

Source: AMRwww.informationweek.comSeptember ‘97

Enterprise Resource Planning

SAP R/3 installations by customer size,as of June, 30th, '98 (16,191 R/3 installations)

SAP R/3 Installations by Company SizeSAP R/3 Installations by Company Size

1000 - 2500

500 - 1000

200 - 500

16.9%

15.1%

12.4%

19.4%

36.2%

Company size in USD mill. revenues

> 2500

< 200Q3/97

344

0

800

Number of new R/3 installations withcustomers < USD 200 mill.

Q4/97 Q1/98 Q2/98

600

400

200

482

574

707

ããã SAP AG 11/97 SAP AG 11/97 SAP AG 11/97

ããã S A P AG 11 /97S A P AG 11 /97S A P AG 11 /97

Reasons for R/3 SuccessReasons for R/3 Success

Three-tierThree-tierclient/serverclient/serverarchitecturearchitecture

Real-timeReal-timeintegrationintegration

1,000+ predefined1,000+ predefinedbusiness processes business processes

spanning all functional areasspanning all functional areas

Openness,Openness,portabilityportability

Scalability,Scalability,flexibilityflexibility

Year 2000-compliantYear 2000-compliantand Euro-enabledand Euro-enabled

• Right Vision• Right Time & Place• Comprehensive

Functionality

R&D 14%R&D 14%of Salesof Sales

Openness: R/3 Technology Environment

DB2 forOS/390

ADABAS DDB2 for AIX

INFORMIX-OnLineORACLE

Windows 3.1, Windows 95, Windows NT,OSF/Motif *, OS/2 Presentation Manager (PM),

Macintosh *, Java

ADABAS DMS SQL Server

INFORMIX-OnLineORACLE

ABAP/4, C, C++, HTML, Java

DB2 for OS/400

OS/390AIX

Digital UNIXHP-UX

ReliantUNIX (SINIX)

SOLARISWindows NT OS/400

Hardware Bull/ZenithCompaqData General...

NCRSequentSNI

DigitalHP (Intel)IBM (Intel)

BullDigitalHP

IBMSNISUN

UNIX SystemsIBM

AS/400

Operatingsystems

DialogSAPGUI

Languages

Databases

IBMS/390

* not supported as frontend to AS/400

SAP Architecture

SAPGUI

Application Server Application Server

SAP Database

SAP GUI SAP GUI

The R/3 Solution

R/3R/3

FIFinancial

Accounting

COControlling

AMFixed Assets

Mgmt ..

PSProjectSystem

WFWorkflow

ISIndustry

Solutions

MMMaterials

Mgmt.

HRHuman

Resources

SDSales &

Distribution

PPProductionPlanning

QMQuality

Manage-ment PM

Plant Main-tenance

SMServiceManage-

ment

ECEnterpriseControllingIntegrated Solution

Client / ServerOpen Systems

•R/3 Software

MORE THAN A SOFTWARE -

A STRATEGIC SOLUTION

A Leadership Story to beContinued

1992Client/ServerIntroduced

1992Y2000

compliant

1993More than 1,900R/3 installations

1994Implemented

in 88 days

1995SAP Top 10 vendor

3years in a row

1996Internet

with R/3 3.1

1996Adressing emer-

ging corporations

1996SAP No 1

Manufacturing system software

1996AcceleratedSAP

1995Industry

Solutions

1996R/3 3.1 Technology

of the year

199725,000 Motorolausers with HR

1997Reebook

Supply Chain

199815.000+

R/3 Installations

1997750 go live

in one months

Our Core Product - R/3 4.0

HumanResources

Euro

HumanHumanResourcesResources

EuroEuro

Logistics

InternetApplication

Compo-nents

InternetApplication

Compo-nents

TravelTravel

BusinessEngineerBusinessEngineer

InformationRepositoryInformationRepository

Financials

EuroSelf

ServiceSelf

Service

Available - to-

Promise

Available - to-

Promise

Environ-mental

Protection,Health &Safety

Environ-mental

Protection,Health &Safety

Consoli-dation

Consoli-dation

TreasuryTreasury

ããã SAP AG 11/97 SAP AG 11/97 SAP AG 11/97

SAP Vision - Information & IntegrationSAP Vision - Information & Integration

INFORMATION FLOWINFORMATION FLOW

CASHCASH FLOWFLOW

TransferTransferTransferTransferTransfer TransferTransferTransferTransferTransfer TransferTransferTransferTransferTransfer TransferTransferTransferTransferTransfer

ConsumerConsumerConsumerSupplierSupplierSupplier ManufacturingManufacturingManufacturing DistributionDistributionDistribution Retail OutletRetail OutletRetail Outlet

CustomerCustomerOrdersOrders

FinancialFinancial / / /ManagementManagementProcurementProcurement ManufacturingManufacturing

R/3 Software Supports the Entire Process ChainR/3 Software Supports the Entire Process Chain

SAP Product VisionSAP Product Vision

INFORMATION FLOWINFORMATION FLOW

A Chain from Supply to ConsumptionA Chain from Supply to Consumption

CASHCASH FLOWFLOW

TransferTransferTransferTransferTransfer TransferTransferTransferTransferTransfer TransferTransferTransferTransferTransfer TransferTransferTransferTransferTransfer

ConsumerConsumerConsumerSupplierSupplierSupplier ManufacturingManufacturingManufacturing DistributionDistributionDistribution Retail OutletRetail OutletRetail Outlet

Highest level of customer responsiveness at lowest Highest level of customer responsiveness at lowest costcost

SAP R/3 Application ModulesSAP R/3 Application Modules

Production Planning (PP)Production Planning (PP)

Materials Management (MM)Materials Management (MM)

Financial Accounting (FI)Financial Accounting (FI)

Asset Management (AM)Asset Management (AM)

Human Resources (HR)Human Resources (HR)

Project Systems (PS)Project Systems (PS)

Sales and Distribution (SD)Sales and Distribution (SD)

Financial Management

EISEIS

EnterpriseEnterpriseManagementManagement

ConsolidationConsolidation BudgetingBudgeting

ECEC

Profit CentersProfit Centers

Capital BudgetingCapital Budgeting ¨̈ Preparation PreparationIMIM ¨̈ Budget Budget release release

¨̈ Execution Execution

FIFI

¨ General Ledger¨ Legal Consolidation¨ Accounts Receivable¨ Accounts Payable¨ Asset Accounting

TRTR

¨ Cash Management

¨ Treasury Management

¨ Market RiskManagement

¨ FundsManagement

COCO

¨ Overhead CostControlling

¨ ABC¨ Product Costing¨ Profitability

Analysis¨ Projects

Operations Management

ProductionProduction

Logistics processesLogistics processes

VendorVendor

ProcurementProcurement

MaterialsMaterialsServicesServices

Ware-Ware-househouse

CustomerCustomer

SalesSalesWare-Ware-househouse

Capacity resourcesCapacity resources

Material resourcesMaterial resourcesHumanHuman

ResourcesResources EquipmentEquipment

Capital resourcesCapital resources

long-termlong-term short-termshort-term

CapitalCapital InvestmentsInvestments CostsCosts CashCash

Human ResourceProcess

CourseCredit

HOTEL

Timestatementlist

BenefitsEnrollment

Recruitment

Hiring

Travel

Training

Payroll Time ReportingEmployee

Development

SalaryAdministration

and CostPlanning

•University AllianceProgram

Changing the face of education through SAP R/3 and the University Alliance Program

The program is just over two years old

Currently has 62 members in the USA

100 members projected by December,1999

17 members in Canada and Latin America

1998 student exposure - was over 6,000 - 1999 student exposure estimated to be 18,000

Building international hemispheric linkages

University Alliance Program - General Information

GOALS OF THE PROGRAM

Support the development of graduate and undergraduate curricula to promote the teaching and understanding of integrated business processes

GOALS OF THE PROGRAM

Develop more technically sophisticated graduateswho are able to apply ERP technology.

GOALS OF THE PROGRAM

Develop a network of university researchers who can contribute to the body of knowledge and innovative applications of R/3.

GOALS OF THE PROGRAM

Increase mind share for SAP and R/3 Enterprise Resource Planning Solutions.

ALLIANCE MEMBERS

ANNE ARUNDEL COMMUNITY COLLEGEARIZONA STATE UNIVERSITYAUBURN UNIERSITYBENTLEY COLLEGECALIFORNIA STATE - CHICOCALIFORNIA STATE - FULLERTONCENTRAL MICHIGAN UNIVERSITYCLARKSON UNIVERSITYDELAWARE COUNTY COMMUNITY COLLEGEDEPAUL UNIVERSITYDREXEL UNIVERSITYFAIRFIELD UNIVERSITYFLORIDA INTERNATIONAL UNIVERSITYFORDHAM UNIVERSITYGEORGIA INSTITUTE OF TECHNOLOGYINDIANA UNIVERSTIY

ALLIANCE MEMBERS

INDIANA UNIVERSITY OF PAJOHN CARROLL UNIVERSITYLa SALLE UNIVERSITYLOUISANA STATE UNIVERSITYMARIST COLLEGEPENN STATEPURDUE UNIVERSITYST. JOSEPH’S UNIVERSITYSTETSON UNIVERSITYTEXAS A & MTEXAS TECHTHE COLLEGE OF WILLIAM AND MARY TULANE UNIVERSITYUNIVERSITY OF ARIZONAUNIVERSITY OF CALIFORNIA - IRVINEUNIVERSITY OF COLORADO - DENVERUNIVERSITY OF DELAWARE

ALLIANCE MEMBERS

UNIVERSITY OF FLORIDAUNIVERSITY OF ILLINOIS at URBANA - CHAMPAIGNUNIVERSITY OF LOUISVILLEUNIVERSITY OF MISSOURI SYSTEM: COLUMBIA KANSAS CITY ROLLA ST. LOUISUNIVERSITY OF NEBRASKA LINCOLN OMAHAUNIVERSITY OF NC - CHAPEL HILLUNIVERSITY OF SOUTH DAKOTAUNIVERSITY OF PENNSYLVANIAUNIVERSITY OF SCRANTON

ALLIANCE MEMBERS

UNIVERSITY OF SOUTHERN CALIFORNIAUNIVERSITY OF TEXAS - AUSTIN

UNIVERSITY OF TOLEDOVILLANOVA UNIVERSITYVIRGINIA COMMONWEALTH UNIVERSITYWIDENER UNIVERSITYUNIVERSITY OF MISSISSIPPIUNIVERSITY OF DAYTONTHE COLLEGE OF NEW JERSEYSANTA CLARA UNIVERSITY

HIGHER LEARNING - FUTURE INITIATIVES

Expanded SAPPHIRE Program

Expanded Curriculum Congress

Develop High School Initiative

Develop ties with Accrediting Agencies (working with AACSB in the development of business skills certification program)

SAP Certification for Undergraduate and Graduate Students (students may have sufficient exposure through their coursework to be able to achieve SAP certification in one or more of the modules)

HIGHER LEARNING - FUTURE INITIATIVES

Initiate SAP Augmented Degree Program (SAP could bring a four or five week intensive training program in one of the R/3 modules to a campus which would be followed by the SAP certification exam in that module)

SAP Sabbaticals

Professional Development Centers (SAP will work with institutions in the development of non-credit continuing professional development courses in ERP principles to be offered to executives)

UNIVERSITY ALLIANCE PROGRAMUNIVERSITY ALLIANCE PROGRAMProgram ComponentsProgram Components

FreeFree•• R/3 R/3•• Training Database Training Database•• Faculty Training Faculty Training•• Support Materials Support Materials

UNIVERSITY ALLIANCE PROGRAMUNIVERSITY ALLIANCE PROGRAMProgram ComponentsProgram Components

•• R/3 R/3•• Training Database Training Database•• Faculty Training (3 Options) Faculty Training (3 Options)•• Support Materials Support Materials•• Installation and Support Installation and Support

FreeFree

•AllianceMembership Steps

UNIVERSITY ALLIANCE PROGRAMUNIVERSITY ALLIANCE PROGRAM

Phases of Membership: Letter of Understanding and Non-Disclosure FormLetter of Understanding and Non-Disclosure Form II

UNIVERSITY ALLIANCE PROGRAMUNIVERSITY ALLIANCE PROGRAM

Phases of Membership:

Customer Number Faculty Training

Letter of Understanding and Non-Disclosure FormLetter of Understanding and Non-Disclosure Form II

UNIVERSITY ALLIANCE PROGRAMUNIVERSITY ALLIANCE PROGRAM

Phases of Membership:

Customer Number Faculty Training

Letter of Understanding and Non-Disclosure FormLetter of Understanding and Non-Disclosure Form II

CurriculumCurriculumDevelopment Development

PlanPlanIIII

UNIVERSITY ALLIANCE PROGRAMUNIVERSITY ALLIANCE PROGRAM

Phases of Membership:

Customer Number Faculty Training

Letter of Understanding and Non-Disclosure FormLetter of Understanding and Non-Disclosure Form II

CurriculumCurriculumDevelopment Development

PlanPlan

AgreementAgreement IIIIII

IIII

UNIVERSITY ALLIANCE PROGRAMUNIVERSITY ALLIANCE PROGRAM

Phases of Membership:

Customer Number Faculty Training

Letter of Understanding and Non-Disclosure FormLetter of Understanding and Non-Disclosure Form II

CurriculumCurriculumDevelopment Development

PlanPlan

AgreementAgreement IIIIIIOrder SoftwareOrder Database

IIII

UNIVERSITY ALLIANCE PROGRAMUNIVERSITY ALLIANCE PROGRAM

Phases of Membership:

Customer Number Faculty Training

Letter of Understanding and Non-Disclosure FormLetter of Understanding and Non-Disclosure Form II

CurriculumCurriculumDevelopment Development

PlanPlan

AgreementAgreement IIIIII Installation Order Software Simulation Order Database Support

IIII

UNIVERSITY ALLIANCE PROGRAMUNIVERSITY ALLIANCE PROGRAMUA Events CalendarUA Events Calendar

•• January January UA Grants Program Awards CeremonyUA Grants Program Awards Ceremony•• March March Curriculum CongressCurriculum Congress•• June June Call for Grant Award proposalsCall for Grant Award proposals•• September September SAPPHIRE UA eventSAPPHIRE UA event

ããã SAP AG 11/97 SAP AG 11/97 SAP AG 11/97

Questions?Questions?