1. SAP 2003: Your Technology and Business Roadmap
Jim Shepherd
Senior Vice President
AMR Research

2. Agenda SAP’s Business Strategy SAP’s Product Strategy
SAP’s Technology Direction
What Should You Worry About ?
Maximizing The Value of Your SAP Investment

3. SAP Snapshot 7.4B € in FY02 Revenues 56% from Maintenance and Services
FY03 Expectation: Flat Revenue, Improved Profits
19,300 Customers
50,000+ Installations – 120+ Countries
23 Industry Solutions

4. SAP’s Business Strategy
Account Control- “The Reliable Business Partner”
Growth – “Influence A Greater Share of IT Spending”
Customer Lifecycle Management -
“ROI - SAP Delivers Value”
Services, Maintenance, & Add-ons
New Markets and Channels

5. SAP Business Strategy: Become Your “Trusted Partner”
Strategic
Consulting
Discover & Evaluate -> Implement -> Operate
Business
Consulting
Business
Software
System
Integration
System
Support
Out- sourcing
Application Layer
Infrastructure
Consulting
Infrastr.
Software
System
Integration
Infrastructure
Support
Middleware Layer
Hardware
OS, DB, ...
System
Integration*
Technical
Support
IT Layer
Source: SAP AG

6. SAP Business Strategy: “Extended Range of Services”
New Maintenance Offerings
Architecture Planning
Custom Development
Consulting
System Integration
Operations Planning & Optimization
Hosting / Outsourcing

7. SAP Business Strategy: New Markets and Channels
SAP Direct Sales
Vertical Resellers
Business One Centers
Sales/Service Partners
Source: SAP AG

8. Product Strategy: All Things For All Buyers
SAP for <Industry>
SAP for Aerospace & Defense
SAP for Automotive
...
SAP Packaged
Solutions
Service Management for <Industry>
Financial Insights for <Industry>
...
SAP xApps
SAP xApp Resource & Program Management
SAP xApp Mergers & Acquisitions
...
mySAP Business Suite
mySAP ERP
mySAP CRM
mySAP SCM
...
SAP Smart Business
Solutions
mySAP All-in-One
SAP Business One
SAP NetWeaver
SAP Enterprise Portal
SAP Master Data Mgmt.
SAP Business Intelligence
SAP Exchange Infrastructure
SAP Mobile Business
SAP Web AS
Source: SAP AG

9. Current Application Strategy
The Ever Expanding mySAP Business Suite
Vertical Industry Solutions
ERP Extensions
R/3 Enterprise or MySAP ERP ?
Mid-market : All-in-One and Business One
The xApps (Cross-Applications) Framework

10. The Ever Expanding mySAP Business Suite
Business Partners
World
Internet
Extranet
Enterprise Group
ENTERPRISE
COLLABORATION
Advanced Supply Chain Planning
Customer Relationship Mgmt
Business Warehousing
Intranet
R/3 Logistics
R/3 Accounting
R/3 HR
R/3 Fulfillment
...
B2B Procurement
Strategic Enterprise Management
Knowledge
Warehouse
Comprehensive e-Business Solutions
Industry-Add-ons
Portals
Marketplaces
Supply Chain Hubs
Collaborative Engineering
E-Recruiting
Electronic Bill Presentment & Payment
Collaborative Forecasting
Source: SAP AG

11. SAP Product Strategy: Scalability
Headquarters
mySAP.com
Distributor
Exchange Infrastructure
SAP All-in-One
Factory
Sales Subsidiary
SAP R/3 Enterprise
SAP Business One
Source: SAP AG

12. New, snap on cross-functional business process
xApps
xApps are
Packaged Composite Applications.
They deliver new end-to-end business processes, that snap-on to an existing
IT environment.
New, snap on cross-functional business process
Existing applications and data sources
xApp
Source: SAP AG

13. Announced xApps Business Views, Events (Context & Insight) Desk- top/
Office
Support HR
Finan-
cials
PLM
SRM
SCM
CRM
Legacy
SAP xApp Resource and Program Mgmt
SAP xApp Mergers and Acquisitions
SAP xApp Employee Productivity
SAP xApp Product Definition
Functional Transactions (Hindsight)
Source: SAP AG

14. R/3 Enterprise SAP Web Application Server 6.20 Replaces Basis Server
Provides J2EE and ABAP Support
Common Foundation for all mySAP.com Components
SAP R/3
Enterprise
Extension
For SCM
For FIN
For HR
For Travel
For PLM
SAP R/3 Enterprise Core 4.7
All Existing R/3 Functionality
Future Changes limited to:
Legal Changes
Defect Fixes
Performance Enhancements

15. R/3 Enterprise Rollout New “Ramp-up” Release Process
Internal
Customer
Release
Restricted
Shipments
Unrestricted
Shipments
New “Ramp-up” Release Process
200 Customers in Controlled Release
1500 Copies Shipped Since January
Reports From Customers Are Positive
7/02
12/02

16. Purchase Order Management Sales Order & Delivery Management
mySAP Business Suite
mySAP PLM
Maintenance & Quality
mySAP ERP
Financials
Human Resources
Corporate Services
Operations
mySAP
SRM
mySAP CRM
Purchase Order Management
Sales Order & Delivery Management
Inventory & Production
mySAP SCM
SAP NETWEAVER
Source: SAP AG

17. mySAP ERP – Edition 2003 Strategic Enterprise Management
Workforce Analytics
Operations Analytics
Analytics
Financial Analytics
Financial
Accounting
Management
Accounting
Financial Supply Chain Management
Financials
Human Resources
Employee Relationship
Management
Employee Lifecycle Management
Employee Transaction Management
Operations
Management
Purchase Order
Management
Inventory
Management
Production
Management
Maintenance & Quality
Delivery Management
Sales Order Management
Corporate Real Estate Management
Incentive & Commissions Management
Corporate Services
Travel Management
SAP NetWeaver
People Integration
Information Integration
Process Integration
Application Platform
Source: SAP AG

18. Combining mySAP ERP & Solutions1
mySAP Business Suite
Customer can buy and deploy mySAP Business Suite
SAP NetWeaver
mySAP Business Suite 2
mySAP ERP
Customer can buy and deploy mySAP ERP
SAP NetWeaver
mySAP ERP 3
Combining mySAP ERP & Solutions
Customer can combine mySAP ERP with mySAP Solutions
SAP NetWeaver
mySAP ERP +
mySAP SCM + +
mySAP CRM + + +
Quickstep
Packages 4
Combining R/3E & Parts
Customer can combine existing R/3 Installations with Solutions, SAP NetWeaver (also parts of it like e.g. Portal or BI) and with Quickstep packages
R/3
Enter-
prise +
mySAP SCM +
mySAP CRM +
SAP NetWeaver +
Quickstep
Packages

19. SAP NetWeaver™ New technology foundation of MySAP products
Centralized collection of SAP technologies
Application Servers
UI Management
Integration Framework
Security
Business Process Mgmnt
Data Warehousing
Portal Framework
Etc.
Neutral positioning toward IBM WebSphere and Microsoft .NET
DB and OS Abstraction
People Integration
Composite Application Framework
Process Integration
Integration Broker
Business Process Management
Information Integration
Business Intelligence
Knowledge Management
Life Cycle Management
Portal
Collaboration
J2EE
ABAP
Application Platform
Multi-Channel Access
SAP NetWeaver™
Master Data Management
Web- Sphere
.NET …
Source: SAP AG

20. What Should You Be Worrying About ?
Instance Consolidation
New mySAP.com Functionality
PLM, APO, Portals, CRM, etc.
Release Strategy & Expectations
R/3 Enterprise, MySAP ERP, MySAP Business Suite ?
Extended Deployment
Internally
Externally

21. Maximizing Your Investment
Competency Center -- Business Process Improvement Not Help Desk!
Continuous Training & Education
Enterprise Performance Management (EPM)
Network Theory -- A system becomes more valuable as it touches more users
Any ERP System Needs Better Public Relations