1. SAP Strategie 2010 – und die Bedeutung von BI Dr. Hanspeter Groth Head of Solution Marketing SAP (Switzerland) Ltd.

2. Enterprise SOA, SAP Netweaver and Business-Intelligence Summary & Discussion IT Challenges for the future success SAP’s Enterprise SOA Strategy 2010

3.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 3 Strategic Priorities for C-Level Executive The greatest management challenge for creating long-term value … (Top-Priorities) Survey, conducted with > 4’000 CxO by Increase Revenues  SUSTAINABLE DIFFERENTIATION

4.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 4 Customers’ Business Requirements CIO’s Wish List* 1Reduce costs through efficiency/ increased productivity 2Enable/drive business innovation 3Create/enable competitive advantage 4Enable growth 5Improve ext. customer satisfaction 6Enable regulatory compliance 7Enable global operations *CIO Magazine October 2004; survey of 544 mainly CIOs Increase Margins  INCREASE PRODUCTIVITY Increase Revenues  SUSTAINABLE DIFFERENTIATION The greatest IT challenge … (Top-Priorities)

5.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 5  Flexibility for business strategies – short time of IT changes Align IT with the business and enable “Next- Practices”   >80% of IT budget spent on status quo Stable, efficient IT Landscape to support “Best-Practices” Make IT an Enabler of Change IT and Business are not aligned as of today Strategy for GROWTH Enterprise Services Architecture leverages existing IT investment CEO sets strategy Ability to EXECUTE Business change SAP NetWeaver ™ as Enabler of Change   IT that enables growth cost- effective and efficient Grow faster than the competition

6.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 6 Innovation Invention Standardi- zation Commodi- tization Life-Cycle of Business Models & –Processes *) CORE activities help differentiate in markets to stimulate growth CONTEXT activities support all your operations need to be efficient as possible Processes that must run to enable you to satisfy your customers Processes that generate new, additional value that attract and keep customers *) G. Moore’s “Living on the fault line” Consolidate Out Task RetireInvent Scale Adaptability to change + Speed of Innovation versus Efficiency and reduction of costs

7. Enterprise SOA, SAP Netweaver and Business-Intelligence Summary & Discussion IT Challenges for the future success SAP’s Enterprise SOA Strategy 2010

8.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 8 Industrialization of Software Development: SOA  Speed+Flexibility : Shorter time to market / volume  Efficiency : Systematic reuse across solutions  Quality : Unprecedented level of quality and scalability 69% of the parts are the same ERPSCMCRM … BI New Solutions … >50% of the processes are the same Enterprise Services Repository SAP NetWeaver Business Process Platform Platorm Process Components Enterprise Services Repository SAP NetWeaver Business Process Platform Platorm Process Components Enterprise Services Repository SAP NetWeaver Business Process Platform Platorm Process Components Enterprise Services Repository SAP NetWeaver Business Process Platform Platorm Process Components Enterprise Services Repository SAP NetWeaver Business Process Platform Platorm Process Components Enterprise Services Repository SAP NetWeaver Business Process Platform Platorm Process Components

9.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 9 Enterprise Class Evolution SOA Ecosystems Evolution of Business-Application Mainframe Packaged Apps Terminals Batch DB CPU & Memory R/2 Open Systems Client Server DB ERP BI SCM CRM PCs Integration Cost R/3 SRMCRM PLM SCM ERP Internet DB Browser, Devices, Etc… Flexibility Internet Application Suites mySAP Business Suite

10.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 10 SAP Application Aspects of Enterprise SOA Service enabling consists of two aspects: From a technology perspective, the SAP system has to support communication based on the Web Services standards stack From an application perspective, the SAP system has to provide meaningful services to prospective client applications Application Services: ABAP Java Web-based Standard Custom Web Services Technologies: XML XSD WSDL SOAP BPEL4WS

11.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 11 SOA + Enterprise Services = Enterprise SOA (ESA) SOA IS REQUIRED... ESOA Enterprise-SOA ES Enterprise-Services + SOA Service-Oriented-Architecture BUT NOT ENOUGH Business Semantics are required

12.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 12 The Approach: Service Oriented Architecture SOA is essential but missing business semantics WEB SERVICES - SOA Chaos  Manually built  Not guaranteed to work  No governance Delete from database Rollback inventory Cancel Shipment Cancel Invoicing Send Notification Adjust Planning Notify Suppliers ENTERPRISE SOA Integrity  Business semantics  Productized  Unified repository Cancel Order Business Semantics – example “Cancel Order”

13.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 13 Order Delete Flag_Material Notify_Custo. Order Delete Flag_Material Notify_Custo. PortalDevicesOfficeRFIDRendering What are Enterprise Services? Enterprise Services are Web Services that provide enterprise level business value Example: Cancel Order 1. Delete Order Record 2. Send a confirmation to customer 3. Remove the order from the production plan 4. Flag corresponding Material 5. Notify the invoicing department Notify Inventory Department Notify Inventory Department Remove Order from production plan Remove Order from production plan …. An Enterprise Service is a semantic grouping of service operations across any number of underlying applications Cancel Order

14.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 14 Enterprise SOA & Business-Process-Platform Best-Practice + Next-Practice built on one Platform SAP NetWeaver Business Process Platform PortalDevicesOfficeRFID xApps (Composites Powered by SAP NetWeaver) Rendering Process Components Enterprise Services Repository Sub- sidiary Bus Partner Home Grown / ISV SAP Flexible UI’s Composite Apps (Next-Practices) Business-Process- Platform Business Apps (Next-Practices)

15. Enterprise SOA, SAP Netweaver and Business-Intelligence Summary & Discussion IT Challenges for the future success SAP’s Enterprise SOA Strategy 2010

16.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 16 mySAP™ ERP Architecture: Powered by SAP NetWeaver ® SAP NetWeaver ’04 SAP NetWeaver 2004s SAP R/3 up to 4.6C mySAP ERP Edition 2004 SAP R/3 Enterprise mySAP ERP Edition 2005 SAP Basis up to 4.6D SAP NetWeaver ’04 SAP Web AS 6.20 SAP NetWeaver 2004s

17.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 17 Release Strategy Stabilizing the core while delivering continuous innovation mySAP ERP 2005 is the Go-To Release for SAP R/3 Customers. 20062007200820092010 mySAP ERP 2005 SAP NetWeaver Enhancement Packages Next Major ERP Release

18.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 18 SAP NetWeaver – Key Features Delivered … SAP NetWeaver PEOPLE INTEGRATION INFORMATION INTEGRATION PROCESS INTEGRATION APPLICATION PLATFORM Integration Broker Business Process Mgmt J2EE DB and OS Abstraction ABAP Master Data Mgmt Knowledge Mgmt Business Intelligence Portal Collaboration Multi-channel access Lifecycle MgmtSecurityEnterprise Service ArchitectureStandards-Based …… Layers and IT-Scenarios in SAP NetWeaver

19.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 19 SAP NetWeaver Business Process Platform Enterprise Services Repository Various experiences & rendering technologies User BI reports, analytics, MDM Adobe forms, CM, text search Guided procedures Business Process Models Work CenterUI Framework (Portal, Web Dynpro) Fabricate Information elements Orchestrate Processes Business Process Expert Model Application Experience Composite Application Framework SAP Other Sources Fabricate Software Components … ….NET ABAP Java Enterprise Services Repository Service Creation & Composition Process Components Reuse Included in next major release of NetWeaver Developer/ Programmer SAP NetWeaver Composition Environment

20.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 20 Dilemma: Disconnect Between Processes And Information Disconnect between … … Transactional Processing + Decision Support People / Roles Processes  Transactional Processing  Decision Support Account Manager Sales Manager Credit Manager Business Analyst Information

21.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 21 SAP NetWeaver Business Process Platform Process Components Enterprise Services Repository Sub- sidiary Bus Partner Home Grown / ISV SAP Convergence of Information Management and Business Applications Business processes are composed to integrate transactional, analytical and collaborative steps BI can be modeled into Composite Applications. In this case we talk about embedded BI Increased adaptability to changed conditions InsightsTransactional Processing Collaborative Steps Processes

23.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 23 Next-Generation ERP Innovation: User Productivity Goal

24. Enterprise SOA, SAP Netweaver and Business-Intelligence Summary & Discussion IT Challenges for the future success SAP’s Enterprise SOA Strategy 2010

25.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 25 Summary Customers want stability and access to innovation Customers want to automate the processes and therefore need more Business-Intelligence for strategic and tactical decision-making Customers want connected transactional processing + decision support (Application + Information Integration) “Classical” Business-Software cannot address these needs With Enterprise SOA and mySAP ERP 2005 SAP delivers innovation without disruption

26.  2006 SAP AG, FHL Lichtenstein, Hanspeter Groth / 26 Kontakt Dr. Hanspeter Groth Head of Solutions Marketing SAP (Schweiz) AG Althardstrasse 80 8105 Regensdorf / Zürich T+41 58 871 67 26 T +41 79 351 46 67 Ehanspeter.groth@sap.com www.sap.ch Questions