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SAP NetWeaver:

Enabling the Smart Enterprise


Lothar Schubert
SAP Labs Palo Alto, LLC
lothar.schubert@sap.com

Business Challenges for Smart Enterprises


Meeting the Key Business Challenges
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action

Business Challenges for Smart Enterprises


Meeting the Key Business Challenges
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action

Few Companies Manage to Stay on Top

Companies
in S&P index

500

those
still remaining
74

those
that outperformed
S&P index
overall
12

1957

1998

1998

Source: S&P Index, McKinsey, MMG


SAP 2004, 4

Sustainable, Profitable Growth


THE WINNING STRATEGY
Refocus on GROWTH
as the economic re-bound has arrived

Drive PROFITABILITY of growth


as you keep improving margins

Ensure SUSTAINABILITY of growth

as you innovate

SAP 2004, 5

The Winning Strategy


GROWTH THROUGH INNOVATION
Relationship
excellence

Innovation

Innovation

Product/service
excellence
SAP 2004, 6

Sustainable,
Sustainable,
Profitable
Profitable
Growth
Growth

Innovation

Operational
excellence

Business Process

SAP 2004, 7

Departmental Perspectives
its just one
missed sale
will be back
in inventory

not a key
customer

extra effort
costs $$$

???

see & wait


SAP 2004, 8

The Bigger Picture: External and Internal Pressures


Competitive Forces

Macro
Economical
Trends

Price competition
Vertical integration

Labor market
Interest rates

SOX
Basel II

Compliance
Requirements
Demographics
Buying behavior

Market Trends
SAP 2004, 9

Integrated Management Processes

Corporate Strategy

Strategic Planning

1.
2.
3.
4.

Scenario simulation
Cash-Flow Forecast

Increase quality of service


Drive transparency
Invest in innovation

Perform. Management

Management

Operational planning
Process optimization
Operational execution

Goal setting
Alignment of interest
Goal measurement

SAP 2004, 10

Business Process
its a missed
sale
will be back
in inventory

not a key
customer

extra effort
costs $$$

???

see & wait


SAP 2004, 11

Business Process
Defection
Risk
Inventory
Forecast

Returns
Per
Customer

CLTV

Delivery
Performance
SAP 2004, 12

Accuracy

Business Process
Defection
Risk
Inventory
Forecast

Returns
Per
Customer

CLTV

Delivery
Performance
SAP 2004, 13

Accuracy

5 Key Business Challenges


1. Execution not aligned with Corporate Strategy
Corporate strategy not communicated clearly
Individual objectives not aligned with strategy
Poor measurement, and no corrective actions

2. Ineffective Decision Making Processes


Decisions delayed, or made on gut feel only
Key stakeholders not involved
Solid information only available to small elite

3. Increasing Competitive and Market Pressures


Lack of insight into markets and trends
Opportunities frequently missed

4. Compliance Requirements
Calls for transparency
Increasing criticality of trustworthy data

5. Budget Constrains
Need to do more with less, and need to justify expenditures

SAP 2004, 14

Business Challenges for Smart Enterprises


Meeting the Key Business Challenges
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action

Challenge 1: Execution Not Aligned With Corporate Strategy


Less than 10% of strategies effectively formulated are effectively executed.
Fortune

Aligning Strategy with Execution requires:

Common set of Metrics, KPIs and Benchmarks


Balanced Scorecards
Solid and integrated planning framework
Corporate Performance Management
SAP 2004, 16

Challenge 2: Ineffective Decision Making Processes

Source: SAP

Improved Decision Making requires:


Reliable, up-to-date and easily accessible information
Context, Guidance, and Collaboration
Information actionable and in consumable format
Self Service and Information Democracy
SAP 2004, 17

Challenge 3: Increased Competitive- and Market Pressures


Account Planning

If you know the enemy and know yourself, you need


not fear the result of a hundred battles. If you know
yourself, but not the enemy, for every victory gained
you will also suffer a defeat. If you know neither the
enemy or yourself, you will succumb in every battle.
Sun Tsu, The Art of War, 500 B.C.

Opportunity discovery and exploitation requires:


Predictive Analytics, Planning & Forecasting
Analytics embedded into Applications
Closing the Loop via Analytical Application
Smart people using smart applications

SAP 2004, 18

Challenge 4: Compliance Requirements


The keys to meeting Sarbanes-Oxley requirements will be the
timeliness of the reporting, as well as the validation that the system
can detect and report the material events. Gartner G2, 2004

SAP Management of Internal Controls (MIC) Reporting, Section 404

Compliance and Corporate Governance calls for:


Transparency, and single version of truth
Trustworthy and auditable data (historic and current)
Right-time reporting, exception notification and alerts
Reliability, completeness and transparency

SAP 2004, 19

Challenge 5: Budget Constrains


[ETL] processes ... can absorb up to 70% of the time spent on a
typical DWH project.
DM Review, 3/01
it is clear that a single architecture will yield a better ROI, is
more likely to come online faster, and is less likely to fail,
undeniably.
Neil Raden, Analyst, 1/04

Calls for IT budget justification and doing more for less requires:
Out-of-the-box templates and analytical applications
Integration with applications, and openness for change
Proven methodology and comprehensive support infrastructure
Buy versus build, from viable partner

SAP 2004, 20

Meeting the 5 Key Business Challenges


1. Execution not aligned with Corporate Strategy

Corporate Performance Management

2. Ineffective Decision Making Processes

Self Service and Information Democracy

3. Increasing Competitive and Market Pressures

Smart people using smart applications

4. Compliance Requirements

Reliability, completeness and transparency

5. Budget Constrains
Buy from a strategic

partner, dont build

A smart business requires a complete, end-to-end,


reliable and open BI Platform.

SAP 2004, 21

Business Challenges for Smart Enterprises


Meeting the Key Business Challenges
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action

The Business Intelligence Platform

DataMart

DataMart

DataMart

Data Warehouse
Integration Broker
ERP/CRM/SCM/External Sources

Presentation
Ad Hoc Query
and Reporting

Statutory
Reporting

Budget
Plan/Forecast

Balanced
Scorecard

Consolidation

Modeling and
Optimization

Knowledge Management

Content Management

Business Proc. Management

Web Presentation/Portal/Mgmt Reporting

DataMart

CPM
Applications

BI
Infrastructure

Data
Sources

Architecture Source: Gartner

(Managing Corporate Performance What you need to know; Lee Geishecker & Frank Buytendijk, 4/04)

SAP 2004, 23

SAP NETWEAVER
ONE PLATFORM ONE PRODUCT
Open integration and application
platform that enables change!
SAP NetWeaver

1 Foundation
Web AS 6.40

PEOPLE INTEGRATION

INFORMATION INTEGRATION

Bus. Intelligence Knowledge Mgmt


Master Data Mgmt
PROCESS INTEGRATION

Integration
Broker

Business
Process Mgmt

APPLICATION PLATFORM

1 Set of scenarios
Integrated components

All Apps
Business Suite, partner solutions
and xApps
developed on
complete,
end-to-end,
NetWeaver

SAP delivers the


reliable and open BI Solution.
J2EE

ABAP

DB and OS Abstraction

1 Package
Coherent installation process

Collaboration

Life Cycle Mgmt

Composite Application Framework

Multi channel access


Portal

1 Platform
Synchronized release dates

SAP 2004, 24

Accelerating NetWeaver Adoption with IT Practices


High

Ability to Change your Business

Right-time data access

ue
l
a
V

Implement XI
Reports for real-time data to complement
the batch-oriented data access of analytic
applications and operational reporting;

Collaboration

Implement Collaboration Rooms


Share documents; collaborate with colleagues for
planning and resolution of business issues

Information Delivery

Implement Portal
Low cost distribution of personalized
reports and alerts to a wide audience

Reports

Implement BW
Provide periodic operational reports to executives
from multiple source
Applications & Application Services Platform Integration

Low

SAP 2004, 25

High

Business Intelligence Overall Solution

SAP 2004, 26

Business Intelligence Overall Solution

SAP 2004, 27

Capabilities
Data Warehousing and Analysis

Data Warehouse Management


Extraction, Transformation and Loading
Business Modeling
OLAP Technology
Data Mining and Predictive Analytics
Alerting

Information Delivery

Query Design
Reporting and Analysis
Alert Notification and Report Broadcasting
Security and Personalization

Measurement and Management

KPIs, Metrics and Dashboards


Business Planning and Simulation
Business Consolidation (delivered via mySAP ERP Financials)
Business Performance Measurement (delivered via mySAP ERP Financials)
Collaboration and Guided Procedures

Best Business Practices

Business Content and Industry Templates


Metadata Management
SAP 2004, 28

mySAP ERP powered by SAP NetWeaver


Application

mySAP ERP Edition 2004+

Additional Components

mySAP ERP Edition 2003

Self Service Procurement

Additional Components

Internet Sales

Self Services

and more

Self Service Procurement

Application

SAP 2004, 29

SAP ERP Central Component

and more

Self Services

SAP R/3 Enterprise

Strategic Enterprise Management

SAP Enterprise Extension Set

SAP ECC Extension Set


Industry
Enablement

SAP R/3 Enterprise Core


SAP NetWeaver

SAP NetWeaver 04

PEOPLE INTEGRATION
Multi Channel Access
Portal

Collaboration

INFORMATION INTEGRATION
Bus. Intelligence
Knowledge Mgmt
Master Data Mgmt
PROCESS INTEGRATION
Business
Integration
Process Mgmt
Broker
APPLICATION PLATFORM
J2EE
ABAP
DB and OS Abstraction

SAP ECC Core

PEOPLE INTEGRATION
Multi Channel Access
Portal

Collaboration

INFORMATION INTEGRATION
Bus. Intelligence
Knowledge Mgmt
Master Data Mgmt
PROCESS INTEGRATION
Business
Integration
Process Mgmt
Broker
APPLICATION PLATFORM
J2EE
ABAP
DB and OS Abstraction

Life Cycle Mgmt

SAP Web
Application Server

Strategic Enterprise Management

Life Cycle Mgmt

Technology

SAP Basis

Composite Applications

Composite Application Framework

up to 4.6C

Composite Application Framework

SAP R/3

SAP R/3 Enterprise


SAP Enterprise
Extension Set
SAP R/3
Enterprise Core

Internet Sales

Roadmap

BW 2.0
- Operational Data Store
- Rich Functionality
- Web Reporting

BW 1.2
- All-in-one
- Application Integration
- Business Content

SAP 2004, 30

BW 3.0
- Easy of use
- Openness
- Tool Integration

BW 2.1c
- Content Release

SAP NetWeaver xx
- Expanded Enterprise
- Active BI
- Advanced user experience

SAP NetWeaver 04
- Extending the reach
- Planning and forecasting
- SAP NetWeaver integration

Business Challenges for Smart Enterprises


Meeting the Key Business Challenges
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action

SAP NetWeaver at Aventis

SAP 2004, 32

SAP NetWeaver at Dow Corning

SAP 2004, 33

The SAP BI Advantage


Enabling of accurate, faster and actionable information
Compliance with industry regulation thus mitigating

business risks
Connecting Corporate Goals, Objectives and Strategies

to an individual contributor level


Information Democracy and Self-Service
Predictive analytics and smarter applications to grow the

business
Quick wins and faster Return on Investment

SAP NetWeaver delivers the complete,


end-to-end, reliable and open BI solution,
enabling the smart enterprise.
SAP 2004, 34

SAP NetWeaver:
Enabling the Smart Enterprise
Lothar Schubert
SAP Labs Palo Alto, LLC
lothar.schubert@sap.com