MIKE STOKO [ ASUG INSTALLATION MEMBER MEMBER SINCE: 2003 BOB GAUTHIER [ ASUG ASSOCIATE MEMBER MEMBER SINCE:1998 CHRISTINA CRONE [ ASUG INSTALLATION MEMBER MEMBER SINCE: 1999 [ ] ASUG and SAP Benchmarking and Best Practices Program Introduction

[ Focused 360 o approach to problem identification and resolution  Strategic Service by ASUG and SAP, launched as a forum to exchange metrics and best practices  Program covers 20 processes, with 3,700+ participants from over 1,200 companies who leverage the program to:  Build a Business Case for change  Compare performance to leading companies, industry peers, and between regions/divisions  Prove Success  Survey participation is included in ASUG membership – your only commitment is time and resources to complete study  Survey content relevant for business as well as IT audiences  Core surveys also available in Spanish and Portuguese (global) Benchmarking and Best Practices Designed to Get Actionable Results

[ Available Benchmarking and Best Practices Human Capital Management Talent Management Supply Chain Planning Transportation Management Warehouse Management CORPORATE SERVICES NPDI Total Cost of Ownership (TCO) Business Intelligence Customer Contact Centers CRM Sales Effectiveness BEST RUN IT CUSTOMER LIFECYCLE Finance Financial Compliance SRM/ Procurement Manufacturing SUPPLY CHAIN Order to Cash/ Contract to Cash Order to Cash/ Contract to Cash Enterprise Health Check Retail Merchandise/ Category Management Centers of Excellence Organizational Change Management Running the ERP Marathon Value Realization ERP ‘Terabyte Club’ Critical Operations Enterprise Data Management Business Intelligence and Analytics Warehouse Management Enterprise Asset Management EH&S Compliance Business Network Transformation IT Strategy

[ Extraordinary Value to Your Organization  Money Saved – Pinpoint areas for top and bottom-line improvements and do more within existing budgets  Time Saved – Identify opportunities to increase productivity  Risk Avoided – Understand IT risks and exposures, enabling development of mitigation plans  More Effective Planning – Explore best practices and industry trends to facilitate strategic IT planning  Track Value Realization – Annual participation allows for tracking progress against past performance and industry metrics

[ Sample Data Points  Leading companies in the Supplier Relationship Management and Procurement study had a 49% higher savings and 51% lower costs than average companies.  Top respondents in the Transportation Management Benchmarking study achieve 9% higher on-time delivery performance at 67% lower spend compared to lower companies.  Top-quartile respondents in the Human Capital Management study train 96% of their employees annually, compared to just 57% for average companies. Analyses suggest that high training investment correlates with a strong regulatory and growth environment.

[ How to Sign Up for more information and to request a Participation

MIKE STOKO [ ASUG INSTALLATION MEMBER MEMBER SINCE: 2003 BOB GAUTHIER [ ASUG ASSOCIATE MEMBER MEMBER SINCE:1998 CHRISTINA CRONE [ ASUG INSTALLATION MEMBER MEMBER SINCE: 1999 [ ] ASUG and SAP Benchmarking and Best Practices Program Questions?

[ Sample Report Findings: Business Planning and Consolidation  Chemical companies that use BPC have 40% higher operating margin and 20% higher revenue growth  Consumer Products companies that use BPC have 15% higher operating margin and 50% higher revenue growth  Companies that use a closed loop process of planning, measuring and simulation need on average less than half the time to prepare a forecast  Companies that use Rolling Forecasts have on average one third lower forecasting cycle times Source: ASUG/SAP BI and Finance Benchmarking Studies

[ Sample Report Findings: Business Intelligence  BI accelerator reduces BI Query Time by two thirds on average  BI Accelerator supports a broader and deeper usage of BI across business processes  A best practice BI environment supports broad usage of Business Intelligence across business processes  Chemical companies with extensive BI usage have 50% higher operating margin and 50% higher revenue growth  Consumer Products companies with extensive BI usage have double the operating margin and 50% higher revenue growth  Companies with extensive BI usage typically invest twice as much in BI as companies with low BI usage Source: ASUG/SAP Business intelligence Benchmarking Study, Based on 120+ Participants

[ Sample Report Findings: Inventory Optimization  The vast majority of supply chain leaders run SAP  Dynamic supply planning and higher supply planning frequency reduces Inventory Days of Supply by one-third for companies in both discrete and process industries  Adopting integrated transportation systems and collaborative frameworks with key carriers, freight forwarders, 3PL’s, etc, improves Inventory Days of Supply by one-third for companies in both discrete and process industries  Dynamic and frequent safety stock calculation reduces Inventory Carrying Costs by three-fourths for companies in discrete industries, and by half for companies in process industries.  Using a collaborative forecasting process with all key customers and using statistical techniques which produce replenishment demands improves Inventory Carrying Costs by two-thirds for companies in both discrete and process industries Source: ASUG/SAP Supply Chain Planning Benchmarking Study, Based on 300+ Participants

[ Sample Report Findings: Procurement Optimization  Companies that negotiate a large percentage of contracts centrally and manage a large percentage of spend strategically achieve on average 40% higher annual savings  Companies with advanced sourcing technology have high spend under management and achieve 100% higher savings (i.e., annual savings and savings through e-auctions)  Organizations that leverage spend analytics tools achieve on average 80% higher savings  Organizations that deploy contract management achieve on average twice the annual savings and require on average one-third less support staff  E-auctions enable organizations to achieve on average 60% higher savings Source: ASUG/SAP SRM/Procurement Benchmarking Study, Based on 300+ Participants

[ Sample Report Findings: Liquidity Management  Companies with capability of making real-time credit decisions have on average 40% lower DSO  Companies where budgeting and forecasting is a continuous loop process of planning, measuring and simulation need on average half the time to prepare forecasts  Companies where G/L and downstream financial systems are integrated close their books on average in one third of the time  Companies using electronic invoicing have 60% lower error rates in bills sent out  Companies where billing system is integrated with order entry system have 70% fewer errors in bills sent out  Days to close annual books can be reduced to half if open items and inter- company balances are reconciled in general ledger accounts during the closing process Source: ASUG/SAP Finance Benchmarking Study, Based on 300+ Participants

[ Sample Report Findings: TCO  The Support Staff Ratio is more than 40% higher for companies without solution manager as compared to companies with solution manager implemented  Support cost ratio is more than one-third higher for companies without solution manager as compared to companies with solution manager implemented.  Cost for SAP transactions is more than one-third higher for companies without solution manager as compared to companies with solution manager implemented  IT spend as a % of Revenue decreases as SAP spend share of the IT budget increases  Companies with SAP Center of Excellence (COE) Have a Lower Support Staff Ratio  Companies With SAP Center of Excellence (COE) have Around One-Third Lower Support Costs Ratio Source: ASUG/SAP TCO Benchmarking Study, Based on 150+ Participants