SHAI AGASSIExecutive Board MemberSAP AG

The architecture of Business drivesthe Business of Architecture

Enterprise Services Architecture

Web Services will happenApplications and Platform galaxies will convergeMany vendors will innovate components and composites Few vendors will sell solutions

Scaling Services to Run the EnterpriseComposites

Components

xApps

Composite

Business Application (mySAP Business Suite)

Best Practices Next Practices

Composites

Components

...

... ERP CRM

Enterprise Service Enabled Integration Platform (SAP NetWeaver)

3rdParty

Employee Interaction

Center

IndustryAdd-On

Product Innovation

Mgmt...

GenericServices

ConsumerPromotions

Consolidated Renovation

Innovation

CIO’s View on Reaching aSustainable IT Cost Structure

MANY PARTIES CAUSEDTHE CURRENT SITUATION

IT Budget

Innovation (10%)

Consolidation(20%)

Operation(70%)

PortalPortalBusinessIntelligenceBusinessIntelligence ……

KnowledgeMgmtKnowledgeMgmt

MobileInfrastr.MobileInfrastr.EAIEAI

Part-nerPart-ner

SAPR/3

SAPR/3

CRMCRM

SAPR/3

SAPR/3

Lega-cyLega-cy

App

licat

ions

Plat

form

Cost ofintegratingapplicationsand platforms

+

+

TCO =

THE COMPLETETCO PICTURE

Integrationplatform cost

Cost ofapplications

PortalPortalBusinessIntelligenceBusinessIntelligence ……

KnowledgeMgmtKnowledgeMgmt

MobileInfrastr.MobileInfrastr.EAIEAI

Part-nerPart-ner

SAPR/3

SAPR/3

CRMCRM

SAPR/3

SAPR/3

Lega-cyLega-cy

App

licat

ions

Plat

form

REDUCE TCO THRU BUSINESS SOLUTIONS POWERED BY SAP NETWEAVER

Savings

TCO =

Integrationplatform cost

Cost ofapplications

mySAP ERP

SAPNetWeaver

Portal, BI,KM, mobile

ERP

BusinessIntelligenceBusinessIntelligence ……

KnowledgeMgmtKnowledgeMgmt

MobileInfrastr.MobileInfrastr.

Part-nerPart-ner

SAPR/3

SAPR/3

CRMCRMLega-cyLega-cy

Com

pone

nts

Plat

form

REDUCE TCO BY USING SAP NETWEAVER FOR NON-SAP INTEGRATION

Savings

TCO =

mySAP ERP

SAP NetWeaverPortal, BI, KM,

Mobile, … Oth

erO

ther

ERP

Part-nerPart-ner

SAPR/3

SAPR/3

CRMCRMLega-cyLega-cy

Com

pone

nts

Plat

form

Integrationplatform cost

Cost ofapplications

TCO =

Savings

REDUCE TCO BY DEPLOYING ANINTEGRATED APPLICATION SUITE

mySAP Business Suite

Oth

erO

ther

Lega-cyLega-cy

Part-nerPart-ner

Com

pone

nts

Plat

form

Integrationplatform cost

Cost ofapplications

SAP NetWeaverPortal, BI, KM,

Mobile, …

ADD FLEXIBILITY WITH FULL ENTERPRISE SERVICES ARCHITECTURE

SAP xAppsmySAP Business Suite

SAP NetWeaverPortal, BI, KM,

Mobile, …

Lega-cyLega-cy

Part-nerPart-ner

Com

pone

nts

Com

posi

tes

PartnerxPD, ……EIC

Plat

form

Oth

erO

ther

Profits comeby applying

savingstowardgrowth

ReducedTCO

EIC = Employee Interaction CenterxPD = SAP xApp Product Definition

SAP xApp Product DefinitionSAP xApp Resource and Program ManagementSAP xApp Mergers and AcquisitionsSAP xApp Quotation ManagementSAP Global Trade Services

SAP xApp Emissions Management by TechniDataE & P Online by AccentureWorkspace Solution B2B Retail Petroleum by AccentureData Center Operations Mgmt by BearingPointplannerDA by BristleConePerformance Analytics by IBMManuf. Performance Intelligence by Lighthammer Warranty Network Mgmt by IBMService Performance Mgmt by Digital FuelPharmaConnect by EZCommerceXHQ by INDXVisual Information for Plants by NRX

THE MAJORITY OF xAPPS IS ACTUALLYDELIVERED BY SAP PARTNERS

PortalBusinessIntelligence …

KnowledgeMgmt

MobileInfrastr.EAI

Part-ner

SAPR/3

CRM

SAPR/3

Lega-cy

SAP xAppsmySAP Business Suite

SAP NetWeaver

Oth

erO

ther

Lega-cyLega-cy

Part-nerPart-ner

PartnerxPD, ……EIC

HOW DO YOU GET THERE?IT’S A STEP BY STEP EVOLUTION!

TCO reductionthrough

integration

Innovationthrough

flexibility

The Executive’s Viewon Change and I.T.

THE C-LEVEL VIEW ON I.T.

Diminishing returns on I.T. investments

High risk of I.T.

investments

GROWTH

GROWTH

$

$

$

$ $

$$

$$

$ $$

Competition

THE ABILITY TO CHANGE ISKEY TO CONTINUOUS GROWTH

New business opportunities

Globalization

Mergers and acquisitions

Shareholder value

Extensions to the core

Competitive pressures

…

THE STUMBLING BLOCKSOF CHANGE

Source: GartnerG2/Forbes.com Enlightened IT Use Survey, August 2003

33%

42%

42%

56%

Business process

Org structure

Underlying IT systems

Corporate culture

IMPROVING THE ABILITY TO CHANGE IS THE PREREQUISITE FOR FUTURE GROWTH.

1960s 1990s 2000s1940s1920s1900s 1980s

Minutes

Hours

Days

Weeks

Months

Years

Processexecutiontime

Change mgmtand processbuild time(incl. IT)

Productlifecycles

Ability toEXECUTE

Prohibitive cost and time of IT changesIT not aligned with the business

Innovation projects instead of productsMove from buy to build

>70% of IT budget spent on status quoTCO pressures continue to rise

Strategy forGROWTH

Existing IT landscapeenables work

CEO sets strategy

$

Businesschange

TODAY’S I.T. LANDSCAPES ENABLE WORKBUT ARE NOT BUILT FOR CHANGE

ALIGN I.T. WITH THE BUSINESS BYELEVATING IT INTO AN ENABLER OF CHANGE

Flexibility ofbusiness strategiesArchitect for the future

Drive innovationDeliver superior business value

Sustainable cost structureReduce TCO

Strategy forGROWTH

Ability toEXECUTE

SAP NetWeaver™Enabler of Change

$CEO sets strategy

$Enterprise Services Arch.

enables change

SAP NetWeaver Delivers Flexibility of Business Strategies

SITUATION TODAYEXTENDED ORDER-TO-CASH PROCESS

Purchaser Prod. Planner Accountant

ERP(Supplier)ERP

(Supplier)CRM

(Supplier)CRM

(Supplier)SRM

(internal)SRM

(internal)ERP

(internal)ERP

(internal)CRM(internal)CRM(internal)

SRM(Buyer)SRM(Buyer)

“Hard wired”EnterpriseSystems

People as“Human

Integrators”

ENTERPRISE SERVICES ARCHITECTUREEXTENDED ORDER-TO-CASH PROCESS

Purchaser Prod. Planner Accountant

SAP NetWeaver

ERP(Supplier)ERP

(Supplier)CRM

(Supplier)CRM

(Supplier)

SRMservices(internal)

SRMservices(internal)

ERPservices(internal)

ERPservices(internal)

CRMservices(internal)

CRMservices(internal)

SRM(Buyer)SRM(Buyer)

FulfilmentCoordination

Settle-mentSourcing Order

Mgmt

EnterpriseSystems

CompositeApplication

Internal andexternal users

EnterpriseServices

ENTERPRISE SERVICES ARCHITECTURE FLEXIBILITY IN BUSINESS STRATEGIES

Purchaser Prod. Planner Accountant

SAP NetWeaver

ERP(Supplier)ERP

(Supplier)CRM

(Supplier)CRM

(Supplier)

SRMservices(internal)

SRMservices(internal)

ERPservices(internal)

ERPservices(internal)

CRMservices(internal)

CRMservices(internal)

SRM(Buyer)SRM(Buyer)

FulfilmentCoordination

Settle-mentSourcing Multi-Channel

Order Mgmt

CustomerExtend to new

user communities

Continuouslychange or expand

processes

Out-sourcing

Add new partnersto the process

Externalservices

CreditCheck(Bank)

CreditCheck(Bank)

Invoicing(Serviceprovider)

Invoicing(Serviceprovider)

SAP NetWeaverPowers Innovation

Technology Advances

Bus

ines

s R

equi

rem

ents

Integratedprocesses Mainframe

Scalableprocesses

ReplaceReplace

3-Tier Client/Server

XX

Flexible processes

LeverageLeverage

Enterprise Service Architecture

ENTERPRISE SERVICES ARCHITECTURELEVERAGES EXISTING INVESTMENTS

SAP NETWEAVER 2004:INFRASTRUCTURE INNOVATION

DELIVERED AS ONE INTEGRATED PLATFORM

SAP NetWeaver™C

ompo

site

App

licat

ion

Fram

ewor

k

PEOPLE INTEGRATION

Multi channel access

Portal Collaboration

INFORMATION INTEGRATION

Bus. Intelligence

Master Data Mgmt

Knowledge Mgmt

PROCESS INTEGRATION

Integration Broker

BusinessProcess Mgmt

APPLICATION PLATFORM

J2EE

DB and OS Abstraction

ABAP

Life Cycle M

gmt

One ProductSynchronized release dates

One FoundationWeb AS 6.40

One PackageCoherent installation process

One SolutionIntegrated IT scenarios

All AppsBusiness Suite and xApps developed on NetWeaver

SAP NetWeaver™PEOPLE INTEGRATION

Multi channel accessPortalCollaboration

INFORMATION INTEGRATION

PROCESS INTEGRATION

Integration BrokerBusiness Process Mgmt

APPLICATION PLATFORM

Knowledge MgmtBusiness IntelligenceMaster Data Mgmt

J2EEABAPDB and OS Abstraction

HTTP, XML, SMTP, J2EE, WSDL,SOAP, UDDI, XSLT

JAAS, WSRP,Personal Java

BPEL, CIDX,RosettaNet, CPPA

ICE , WebDav , XML/A,JMI, XMI, CWM, ODBO

XM

L E

ncr.

& S

ign.

, DS

IG, S

AM

L …

Standards Supported (Selection)Organi-zations

W3C

OASIS

JCP

WS-I

Eclipse.org

mySQL

OMG

…

SAP NETWEAVER OPENNESSSUPPORTED INDUSTRY STANDARDS

SAP NETWEAVER 2004:INFRASTRUCTURE INNOVATION

ALONG INTEGRATED I.T. SCENARIOS

SAP NetWeaver™

Com

posi

te A

pplic

atio

n Fr

amew

ork

PEOPLE INTEGRATIONMulti channel access

Portal Collaboration

INFORMATION INTEGRATIONBus. Intelligence

Master Data Mgmt

Knowledge Mgmt

PROCESS INTEGRATIONIntegration Broker

BusinessProcess Mgmt

APPLICATION PLATFORMJ2EE

DB and OS Abstraction

ABAP

Life Cycle M

gmt

Better analytics& reporting

ManageMasterData

Build a know-ledge network

PortalCockpits

Application toapplication

integration hubs

Web servicesenablement

ExtendingR/3

CompositeApplications

Custom AppDevelopment

OPENINTEGRATION

ANDAPPLICATION

PLATFORM

OPENINTEGRATION

ANDAPPLICATION

PLATFORM

SAP NETWEAVER POWERSBUSINESS PROCESS INNOVATION

End-to-end processesAcross system and organizational boundaries

Better business decisionsAnalytical insight from across the company

Strategic advantagesHarmonized master data across systems

Reaching every individualRole-specific, easy access to all systems

…

SAP NETWEAVER POWERS MYSAP SOLUTIONSSAP Adoption is critical for eco-system

Example:mySAP CRMExchange Infrastructure

WORLDWIDE SAP NETWEAVERSAMPLE CUSTOMER ADOPTION

A STRONG PARTNER COMMUNITYADDS EVEN MORE VALUE TO SAP NETWEAVER

MercuryInteractive

Service &Technology

Partners

Certified forSAP NetWeaver

Powered bySAP NetWeaver

Mobious

THE SAP DEVELOPER NETWORK35,000 MEMBERS AND GROWING

sdn.sap.com

Summary

SAP NETWEAVERSUMMARY

Ability to change is key to growth

SAP NetWeaver enables changeLeveraging existing investments

Flexibility for business strategiesEnterprise Services Architecture

Facilitate innovationSAP, partner and custom solutions

Sustainable cost structureNetWeaver delivers on ROI and TCO

Quickly growing eco-systemCustomers, partners, consultants and developers

Is there SAP NetWeaverin your future?

Custom Development

The platform of choice for SAP customers

xApp DevelopmentVertical Solutions – if you have industry knowledgeHorizontal Solutions – If you have process knowledgeComposites – If you don’t need SAP’s backing

Component Development

Only if you fill a big hole in our picture

Let’s talk …

about how SAP NetWeaver can help Your business grow.

Thank You.