Hosted by SAP Future Directions: 2003 and Beyond Joshua Greenbaum, Principal Enterprise Applications Consulting

Hosted by Agenda SAP’s Premises for the (Near) Future X-Apps CMDM Conclusion

Hosted by Technology and Applications: Drivers and Assumptions The Infrastructure is Largely In Place Heterogeneity is Reality Interoperability Standards (XML, WS, etc.) Are Coming Business Processes Are The Value-Add, All Else is Becoming a Commodity

Hosted by Business Consequences No More Big Bang Economic Buyer is Line of Business, Not CIO Average Deal Size Dropping, Volume Is Essential Upselling the Customers is Job #1

Hosted by The Solution: Leverage Your Investment Low-Cost of Acquisition Small Technology Footprint Low-Cost, Rapid Implementation Leverage Existing Technology and Business Investments Integrate To Existing Infrastructure Rapid ROI: Year One

Hosted by X-Apps The Ultimate LYI Product The Composite, Cross-Application, Meta- App The Future of Software Development and Delivery? SAP’s Competitive (so far Slideware) Advantage

Hosted by X-App Defined Any Application that Uses Data and Business Processes From Other Applications and Data Sources to Provide Value-added Functionality Above and Beyond Existing Applications and Infrastructure

Hosted by X-App Archetype: Trading Desk Merge Data…. Trading Data Chat Rooms News/Weather And Processes …. Transfer Funds Buy Sell And Create New Functionality Buy on Calculated Exception/Trigger/Event

Hosted by X-App Applications Architecture Source: SAP

Hosted by X-App Business Processes Resource and Program Management Project Portfolio Management Project Execution Staffing Resources Assignment Adv. Skills Management Employee Productivity Strategy Alignment Enable Company Agility Increase Productivity Reduce Costs

Hosted by X-App Business Processes Mergers and Acquisitions M&A Project Management Deal Management New Company Management Project Execution

Hosted by X-App Technical Architecture Source: SAP

Hosted by X-App Issues Three Kinds of X-Apps SAP X-App ISV/SI X-App Your X-App The X-App SDK: When, What, How Much? X-App 3 rd Party Market: Certification, Value, Services X-App Vs. Third Party Best-of-Breed Apps X-App Vs. Start-up “Killer Apps”

Hosted by Can SAP Deliver? Watch For… Compelling X-Apps The Adapter Problem The Software to Services Ratio Partner Certification

Hosted by Collaborative Master Data Management The Infrastructure Superstructure The Universal Data Source: Repository of Master Data Definitions Harmonize All the Data Sources: One Version of the Truth LYI Enabler

Hosted by CMDM Defined One Version of the Truth Single Source for All Data: SAP and non-SAP Single Administrative Site for All Data Management Repository of Master Data Objects That Define Specific Business Practices: Business-Specific Units of Measure Connect Heterogeneous Environments Linking Applications, Maintaining Consistent Data Among Different Data Sources/Applications Control Corporate Data Central Management and Process Control For All Systems (Internal and External)

Hosted by CMDM Architecture Source: SAP

Hosted by CMDM Components Master Data Objects: Define the Business Objects Product Master Business Partner Product Structure Organizational Structure Data Services: Manage the CMDM Environment Data Management Services Change Management Distribution Others Content Integration, Data Staging (ODS), Adapters, Etc.

Hosted by CMDM Technology Runs on Web Apps Server (WAS) Requires Exchange and Third Party Adapters Workflow is SAP-Only BW Can Be Used, But Master Data in CMDM Portal Interface Database Independent

Hosted by CMDM Q3 Deliverables Master Data Server (Object Definition and Deployment) Content Integration Exchange Adapters CMDM Database

Hosted by CMDM: What’s the Value? De-duping Huge Cost In M&A and Dynamic Businesses Non-Management Costs Can Be Even Larger: Accuracy in Operations, Support and Service SAP ROI Analysis: $4 million in Savings Lower Overall Integration Costs Consolidation and Collaboration Economies of Scale for Data Can Match the Economies of Scale in the Rest of the Enterprise

Hosted by CMDM: What’s the Catch? Not Until Q3 Best for R/3 Centric to Start Master Data Definitions Require A Harmonization Process FIRST (Remember BPR?) Adapters, Adapters, Adapters Horizontal To Start, But Better As a Vertical The More You Do, the More You Integrate

Hosted by CMDM: How To Get Ready Think Master Data Objects Think Process First: What are Real-world Benefits Don’t Integrate Everything (Remember the Data Warehouse Overruns) Get To Know Portal, WAS, Exchange, BW

Hosted by Conclusion #1: Glass Half Full SAP Has Some Good Stuff Coming There is Actual Value Possible User Risks Will Be Relatively Low SAP is Playing Leadership Position

Hosted by Conclusion #2: Glass Half Empty All is Slideware Until Proven Otherwise The Only ROI That Matters is Your Own Low Risk Doesn’t Mean No Risk Technology Leadership Is For Vendors, Not for All Users

Hosted by Conclusion #3: The Bottom Line X-Apps and CMDM Are in Your Future One Way or Another SAP Has An Incumbency Advantage, But Won’t Be the Only One Real Competitive Advantage from IT is Still Possible