1. Dr. William P. Wagner Villanova University SAP NetWeaver EAI Technology Framework for the Future

2. Dr. William P. Wagner Villanova University Background of SAP Founded in 1972 in Waldorf, Germany >25K companies run SAP  Approaching 60% market share in ERP  Made the switch in ’90s to C/S architecture  $8.4B rev in 2003 (up 12%) License revenue declined 6% 15% increase in profits in Q2 this year Powerful yet inflexible software  Difficult to expand into SME markets

3. SAP Revenue Breakdown (2003)

4. Dr. William P. Wagner Villanova University SAP NetWeaver: Future of SAP What is NetWeaver and why is it a buzzword in SAP circles?

5. Dr. William P. Wagner Villanova University What is NetWeaver? SAP NetWeaver provides all the technological capabilities necessary to develop, integrate, and run current and future SAP solutions.

6. Dr. William P. Wagner Villanova University Strategy behind NetWeaver In 2001, SAP made the key decision to open up their proprietary technology  Rewrote R/3 kernel  Supporting J2EE and XML  Launched on-line developer network In Jan. 2003, they launched NetWeaver  Open standards platform based on J2EE  Coupled with XML and Web Services standards  Separating their business solutions from their technology platform (MySAPXXX and Basis)

7. Dr. William P. Wagner Villanova University NetWeaver Strategy… Before NetWeaver, companies needed other SAP tools and middleware to web enable apps, build portals, or enable mobile devices  Came up with BAPIs in 1990s  Then MySAP.com in mid 1990s  Cost of integration was high so they came up with NetWeaver Pre-configured integration in SAP XI

8. Dr. William P. Wagner Villanova University Evolution of NetWeaver SAP R/3 included “Basis” which was technology layer  Included generic interface – SAP GUI, workflow engine  SAP BW, APO, and newer products contained the same tech layer Customers could not get the technology without buying the application on top of it In 2000, SAP released WAS, as an extension of Basis, to be used on its own  SAP EP and XI followed In Jan 2003, introduced NetWeaver  NetWeaver is free to licensed MySAP users and cheap for R/3 customers  NetWeaver is a loss leader for its other applications

9. Dr. William P. Wagner Villanova University NetWeaver Strategy… Provides a platform for standardizing integration  Vendor-neutral, can run along-side WebSphere or BEA WebLogic  Addresses non-SAP integration as well  Non-SAP developers can now build enterprise level web services that can be integrated with SAP back end systems

10. Dr. William P. Wagner Villanova University NetWeaver Strategy… Estimated 1 million registered ABAP developers  Goal is to move them to become NetWeaver developers  Had to resolve ABAP-Java integration issues Java has found a home in the mid-tier of the enterprise NetWeaver is designed to help connect SAP backend to Java apps Traditionally this has been very expensive to do New developer tools are designed to make it easier for non-SAP developers to write for SAP…>80% of Fortune 1000 firms have some SAP  Tools include NetWeaver Developer Studio, Web Dynpro, Java Connectivity Builder

11. Dr. William P. Wagner Villanova University NetWeaver Strategy SAP wants developers to design and certify NetWeaver apps that enhance SAP functionality  Called xApps or “composite applications”  Will use pieces of existing SAP apps to build extensions with NetWeaver  Enterprise Portal is a key technology for this

12. Dr. William P. Wagner Villanova University Web Service as driver… Web service integration was harder than they thought  Java and XML have become the standards  Evolving into Enterprise Services Ex. Cancelling an order vs. checking inventory, reducing salesperson commission, and generating an amended PO

13. Dr. William P. Wagner Villanova University NetWeaver Adoption SAP anticipates that NetWeaver will redefine the company in a global manner  About 3000 of more than 24,000 potential companies have put some portion of NetWeaver into play  Early stage of maturity  IBM and MicroSoft supporting NetWeaver  SAP committed heavily to grow this in 2004 and 2005

14. Dr. William P. Wagner Villanova University NetWeaver Components SAP NetWeaver 2004 Synchronized Release as a single package  SAP WAS 6.4  SAP EP 6.0  SAP XI 3.0  SAP BW 3.5  SAP MI 2.5 (SAP MDM limited usage at this point) All sold and shipped together and can be installed in one procedure  Still possible to run individually  Ramp up was April 2004

16. Dr. William P. Wagner Villanova University

17. … SAP NetWeaver™ INFORMATION INTEGRATION Master Data Management Bus. IntelligenceKnowledge Mgmt Composite Application Framework PEOPLE INTEGRATION Multi channel access PortalCollaboration APPLICATION PLATFORM J2EE DB and OS Abstraction ABAP Life Cycle Mgmt PROCESS INTEGRATION Integration Broker Business Process Management SAP EP SAP MI SAP BI SAP XI SAP MDM SAP WAS

18. Dr. William P. Wagner Villanova University Evolution of SAP App development ABAP & SAP Basis Open SQL RFCs/BAPIs ALE & IDocs Report Writer/Query Dynpro, SAP GUI ABAP Workbench WAS and Java Open SQL for ABAP & Java Web Services/WSDL XI, MDM, and XML SAP BI Web Dynpro, EP, MI NetWeaver Developer Studio

19. Dr. William P. Wagner Villanova University

20. Dr. William P. Wagner Villanova University

22. Dr. William P. Wagner Villanova University Terms to know… EAI ERP R/3 modules  FI/CO, MM, SD, HR, PP SDN MySAPXXX Basis NetWeaver 2004 ESA EP MI XI WAS BI MDM  Master data