Partner Enablement: Delivering Sustainable Value to our Joint Customers
Zia Yusuf
Executive Vice President,Platform EcosystemSAP AG
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 2
SAP Ecosystem Momentum in 2005
3x increase in SAP NetWeaverEcosystem
400+ PBNW solutions1,000 CFNW solutions
Expand Powered by SAP NetWeaver definitionIncrease partner access to Enterprise Services to build bettercomposite solutions
1,000+ attendees worldwide atISV Enterprise Services Forums
More Partner Enablementprograms700 attendees at inaugural ES Partner Summit
50 joint SAP NetWeaver customerreferences with partners
More visibility for Partners40,000 customers receive SAP NetWeaver Solution Catalog
2005 Key Milestones
2006 Key Areas of Focus
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 3
Ecosystem EconomicsCreating Sustainable economic value for members of the SAP Ecosystem
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 4
Our Opportunity: New Trends Sweeping the Industry
Architecture shift Ecosystem Growth OpportunitiesHow to accelerate innovation and change?
Mee
ting
Cus
tom
er N
eeds
Market
ERP InteroperabilitySeparate apps
on separate platforms
Packaged ERP(EDI, XML)
Integrated ERP on 1 platform
Solutions/Services(Industry Solutions)
Application Suites on 1 Platform
Co-Innovations & Customer SurpriseSAP + Ecosystem + Industry Expertise
xApps using common & consistent enterprise Services
Needed(helps customers
Differentiate)
Solution Value Market Leading
Baseline(table-stakes)
TODAYEcosystem Transformation
1995
2005
2000
2010
NEW FRONTIER: BUSINESS PROCESS INNOVATION
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 5
Ecosystem Architecture: Creating Customer Value
Scope of the Ecosystem
YesterdaySuppliers focused on solving narrow set of industry pain points
TodaySAP’s Ecosystem creates economic value by exposing entire spectrum of key customer problems by industry or segment
... Assemble all suppliers around value
... Across the entire IT stack
… Effective ecosystem engagement model
… Ecosystem economic value creation
CUSTOMER NEEDS(Industry Solution Maps, Innovations)
SUPPLIERS(ISV, SI, Technology, SAP)
IT PRODUCTIVITY(platform, apps, deployment)
ENGAGEMENT MODEL(community, certifications, partner prog)
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 6
The Economics of a Trusted Ecosystem
With all suppliers of products and services
Across the entire IT stack
With a success drivenengagement model
Develop Plan Source Make
Research & Development
Supplier Collaboration
Supply Chain Planning & Execution
Sales & Marketing
Customer Service
Quality Management & Compliance
Quality Management & Compliance Quality Management
Compliance
Enterprise Management & Support Analytics Financials
Human Capital Management Corporate Services
Solving Pain Points
System IntegratorsIndependent Software VendorsTechnology vendorsBusiness service providers (e.g. BPO)Customers
Customer NeedHigh Value Business NeedsCo-Innovation to create solutionsextending SAP’s Industry Solution MapsEnable ecosystem to rapidly bring innovations to market
Technology CapabilitiesAppsTechnologiesCompute, store, networkDeployment
Ecosystem Enablement ProgramsCommunity (SDN, ESC)Technical certification Business model
CUSTOMER NEEDS
SUPPLIERS
IT PRODUCTIVITY
ENGAGEMENT MODEL
ISVs
Tech Partners
SAP
Customers
SIs
DeliveryDeployment
Composition Management
ApplicationsNetwork
SDNES CommunityCertification
Platform
Bus
ines
sP r
o ces
s es
Bu s
i ne s
sP r
o ces
s es
Bu s
i ne s
sP r
o ces
s es
Network Effect:Bringing together Suppliers
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 7
Value Networks replace Value Chains• Multiple Connections• Web of different resources working
together create economic value• Need for agility• Customer vs. partner lines blurring
Trusted Ecosystem Grows• Creating benefits for network • Knowledge sharing (white spaces)• Profits through co-innovation• SAP – Ecosystem orchestration
Six Degrees of Separation: The Organic Ecosystem
ISV
ISV
ISV
ISV
ISV
ISV
ISV
ISV
SI
Customer
SAP
Hardware
ISV
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 8
Our Ambition and the Importance of a Strong Ecosystem
Growth StrategyOrganic
Invest in talent/product
Co-innovationInvest in ecosystem
Fill-in acquisitionsInvest in complementary products
2005 2010E
~$30bn ~$70bn
#1 BusinessProcessPlatform
Leader inBusiness User
Solutions
#1 CRM, #1 SCM,#1 SRM, #1 PLM
#1 ERP
Leader inIndustry
Solutions+
#1 CRM, #1 SCM#1 SRM, #1 PLM
#1 ERP
#1 Mid-market
EXPAND ADDRESSABLE MARKET + EXPAND LEADERSHIP POSITION
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 9
Strengthening our Position to Act as an Ecosystem Catalyst
You are an increasingly important part of this success
Peer Group Share
14%ORCL
62%SAP
16%ORCL
ORCL acquiresPSFTPSFT acquires
JDEC
13%MSFT
30 PP
PSFT
JDEC
45%48%
50% 51% 52% 53% 53%55%
57%54%
9%SEBL
58%
Q4 01-Q3 02
Q2 02-Q1 03
Q4 02-Q3 03
Q2 03-Q1 04
Q4 03-Q3 04
Q2 04-Q1 05
Q3 04-Q2 05
Q3 01-Q2 02
Q1 02-Q4 02
Q3 02-Q2 03
Q1 03-Q4 03
Q3 03-Q2 04
Q1 04-Q4 04
Q4 04-Q3 05
24%
31 PP
44%SAP
Q1 05-Q4 05
60%
46 PP
55%
(rolling 4 quarters; based on comparable software revenues)
ProcessIndustries
CP&LS DiscreteIndustries
Service Ind.& Trading
PublicServices
FinancialServices
20%Aggregate
Total =$15,4bn
Our historic industry success resulted inOur historic industry success resulted ina 20% market share in average!a 20% market share in average!
32% 30% 22% 15% 14% 12%
ProcessIndustries
CP&LS DiscreteIndustries
Service Ind.& Trading
PublicServices
FinancialServices
16% 16% 11% 6% 5% 5%
9%Aggregate
Total =$36,8bn
The market is huge, The market is huge, we still have 90% market to capture!we still have 90% market to capture!Market: EAS, NW & ISS (IndustryMarket: EAS, NW & ISS (Industry--Specific Software) Specific Software)
OUR JOINT OPPORTUNITYOUR JOINT OPPORTUNITY
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
Win-Win not a Zero Sum Game!
ProcessIndustries
CP&LS DiscreteIndustries
Service Ind.& Trading
PublicServices
FinancialServices
20%Aggregate
Total =$15,4bn
Our historic industry success resulted inOur historic industry success resulted ina 20% market share in average!a 20% market share in average!
32% 30% 22% 15% 14% 12%
ProcessIndustries
CP&LS DiscreteIndustries
Service Ind.& Trading
PublicServices
FinancialServices
20%Aggregate
Total =$15,4bn
Our historic industry success resulted inOur historic industry success resulted ina 20% market share in average!a 20% market share in average!
32% 30% 22% 15% 14% 12%
ProcessIndustries
CP&LS DiscreteIndustries
Service Ind.& Trading
PublicServices
FinancialServices
16% 16% 11% 6% 5% 5%
9%Aggregate
Total =$36,8bn
The market is huge, The market is huge, we still have 90% market to capture!we still have 90% market to capture!Market: EAS, NW & ISS (IndustryMarket: EAS, NW & ISS (Industry--Specific Software) Specific Software)
16% 16% 11% 6% 5% 5%
9%Aggregate
Total =$36,8bn
The market is huge, The market is huge, we still have 90% market to capture!we still have 90% market to capture!Market: EAS, NW & ISS (IndustryMarket: EAS, NW & ISS (Industry--Specific Software) Specific Software)
OUR JOINT OPPORTUNITYOUR JOINT OPPORTUNITY
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
Win-Win not a Zero Sum Game!
OUR JOINT OPPORTUNITYOUR JOINT OPPORTUNITY
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
Win-Win not a Zero Sum Game!
OUR JOINT OPPORTUNITYOUR JOINT OPPORTUNITY
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
OUR JOINT OPPORTUNITYOUR JOINT OPPORTUNITY
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
ISV +%
SAP+%
Win-Win not a Zero Sum Game!
Opportunity to grow together
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 10
Partner Enablement–Delivering value to our joint customers
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 11
Creating the Most Valuable Ecosystem for Customers
Ecosystem has agility to solve latest, high value business problemsOverall IT stack productivityExtend the SAP Industry Solution Maps
2
4
6
8
10
0Common
data definition
Common process definition
Common integration
model
New solutions
Reduce TCO
Standardize on common
platform
Single user
interface
Common support
Single point of contact
91% said depth of integration and collaboration with SAP was key criteria for ISV selection
2005 CIO Survey: SAP’s Largest Global Customers
Source: SAP Customer Survey at TechEd Boston September 2005: Number surveyed = 43
ACCELERATE INNOVATION
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 12
One Paradigm for Both Internal and External Integration
Extended Value NetworkEnterprise
SAPR/3
Legacy/ISV
mySAP
A1/B1
Subsidiary
Headquarters
Subsidiary
Subsidiary
Subsidiary
Subsidiary
ChannelPartner ISV
ManufacturingPartner Legacy
… B1
REDUCE COMPLEXITY INCREASE COOPERATION
… mySAP
Enterprise Services
Repository
Multiple, different systems in a global value network
Increasing need to both integrate and flexibly adapt in this value network
Enterprise Services Repository serves as common foundation
IN A GLOBAL VALUE NETWORK, A UNIFIED ENTERPRISE SERVICES REPOSITORY LAYS THE FOUNDATION FOR A NEW OPEN BUSINESS INTEGRATION PARADIGM
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 13
Delivering on ISV Economics: Partner Enablement
Grow Current Revenue Streams
Create new revenue streams
Joint Success
Focus on higher margin products and customers
Reduce cost of product development / deployment
Revenue Growth
Efficient Delivery
Network Economics
SAP Enablement
• Access to 32,000 customers
• 25 Industry verticals
• Marketing & Sales support
• Showcase solutions in SAP Partner catalogs
• Industry Go to Market
SAP Enablement
• Comprehensive Development Package
• Certified solutions
• Partner support packages
• ESA and Platform
• Developer community
• Industry Business Process expertise
SAP Enablement
• Customer satisfaction
• Focus on Core vs. Context
• Network-led growth
• Individual vs. community
• Connections in the network
• Platform provider manages the trusted network experience
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 14
Steps to Increasing Partnership Value
Grow Current Revenue Streams
Create new revenue streams
Joint Success
Focus on higher margin products and customers
Reduce cost of product development / deployment
Revenue Growth
Efficient Delivery
Network Economics
"The strong partnership between Vendavo and SAP is delivering compelling value to SAP customers worldwide, and has driven uncontested market leadership and dramatic revenue growth for our company.“
- Jamie RapperportEVP Marketing and Business Development,
Vendavo
“Working with SAP, our joint solution offering is bringing extensive benefits to our customers, creating a unified, predictive view of manufacturing throughout the enterprise. Delivering such seamless business processes and integration across solution vendors, is only possible with strong collaboration between the companies to enable joint solution and service planning, delivery and support.”
― Ralph Carter, CIO
"SAP NetWeaver reduces our development and implementation costs and enables us to rapidly deliver integrated solutions to our customers. By partnering with SAP, we offer customers a competitive advantage by extending enterprise applications, increasing productivity and maximizing ROI."
-AJ Brohinsky, SVP
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 15
Steps to Increasing Partnership Value: Summit Sessions
Grow Current Revenue Streams
Create new revenue streams
Joint Success
Focus on higher margin products and customers
Reduce cost of product development / deployment
Revenue Growth
Efficient Delivery
Network Economics
Breakout SessionsBuilding the Best Ecosystem for Business Process Co-Innovation
Creating Value for Your Customers with SAP NetWeaver, Enterprise Services Architecture (ESA), and SAP xApps: Positioning, Messaging, Go-to-Market
Successful Collaboration with SAP’s Industry Business Units from a Partner’s Perspective
Think Like Your Customer: SAP CIO Customer Panel Discussion
Breakout SessionsIntroduction to Market Development Engineering
How to Leverage the Partner Technical Advisor to Maximize Technical Support and Enablement from SAP
Executing on the Promise: SAP NetWeaver, ESA, and Industry-Focused Business Processes
Understanding SAP xApps: The Development Life Cycle and Methodology
Breakout SessionsA How-to Guide: Successful Collaboration with SAP’s Industry Business Units
An Inside Look: The Global Network Supporting SAP’s Ecosystem
The Art of the Deal: SAP Account Executive Panel Discussion
New Business Opportunities and New Markets: Executive Sales Panel Discussion
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 17
SAP Enabling your success
Ecosystem
Trust: ES Community Engagement: Partner Edge
Co-Innovation: Industry Go-To-Market Support: Partner Enablement Packages
© SAP AG 2006, “IT as a Strategic Driver of Value Creation”, Shai Agassi, 19
CUSTOMER & PARTNER GROUPS
ES COMMUNITY
SAP
ENTERPRISESERVICES
REPOSITORY
Industry Value NetworksPowered by SAP NetWeaver
ASUG/DSUG OTHER
ENTERPRISESERVICESPROPOSAL
TechnologyPartners
ISVs
Customers
SAP
SIs
Definition Groups
ES Community allows the ecosystem to influence and define enterprise services critical to success
ENTERPRISE SERVICES COMMUNITY LAUNCH
© SAP AG 2005, Title of Presentation, Speaker Name / 22
Associate LevelProgram Entry Point
Standard RequirementsBusiness Benefits
Gold LevelHighest
CommitmentMost Benefits
Silver-LevelHigher CommitmentElevated Benefits
Evolution of the Partner Programs
Software Partners Program
SAP Powered by NetWeaver Partners
Value-addedResellers
SystemsIntegrators
TechnologyPartners
xAppsPartners
© SAP AG 2005, Title of Presentation, Speaker Name / 20
Global Service & Support Focus Topics for Partners
Partner Enablement Package:Linkage between the overall SAP Service
Portfolio and partner-specific services within Partner Program
Solution Manager:Linkage between all existing
SAP’s infrastructure
Safeguarding:improves partner business by
mitigating risks in customer projects
Safe Passage:Improved quality & reduced efforts in migration projects
Upgrade Services:enables partners & and theircustomers to take all benefits from the newest SAP ERP release
Operation Support :Enables partners to operate latest SAP products cost-effective, flexible and with highest quality
System Provisioning:Fast access to SAP hosted system services for a flexible and resource efficient support of partner development or implementation projects
MaximizeSAP
Partner Success
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 18
© SAP AG 2006, “IT as a Strategic Driver of Value Creation”, Shai Agassi, 19
CUSTOMER & PARTNER GROUPS
ES COMMUNITY
SAP
ENTERPRISESERVICES
REPOSITORY
Industry Value NetworksPowered by SAP NetWeaver
ASUG/DSUG OTHER
ENTERPRISESERVICESPROPOSAL
TechnologyPartners
ISVs
Customers
SAP
SIs
Definition Groups
ES Community allows the ecosystem to influence and define enterprise services critical to success
ENTERPRISE SERVICES COMMUNITY LAUNCH
Ecosystem
SAP Enabling Your Success
© SAP AG 2005, Title of Presentation, Speaker Name / 22
Associate LevelProgram Entry Point
Standard RequirementsBusiness Benefits
Gold LevelHighest
CommitmentMost Benefits
Silver-LevelHigher Commitment
Elevated Benefits
Evolution of the Partner Programs
Software Partners Program
SAP Powered by NetWeaver Partners
Value-addedResellers
SystemsIntegrators
TechnologyPartners
xAppsPartners
© SAP AG 2005, Title of Presentation, Speaker Name / 20
Global Service & Support Focus Topics for Partners
Partner Enablement Package:Linkage between the overall SAP Service
Portfolio and partner-specific services within Partner Program
Solution Manager:Linkage between all existing
SAP’s infrastructure
Safeguarding:improves partner business by
mitigating risks in customer projects
Safe Passage:Improved quality & reduced efforts in migration projects
Upgrade Services:enables partners & and theircustomers to take all benefits from the newest SAP ERP release
Operation Support :Enables partners to operate latest SAP products cost-effective, flexible and with highest quality
System Provisioning:Fast access to SAP hosted system services for a flexible and resource efficient support of partner development or implementation projects
MaximizeSAP
Partner Success
Trust: ES Community
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 19
SAP Enabling Your Success
Ecosystem
© SAP AG 2005, Title of Presentation, Speaker Name / 20
Global Service & Support Focus Topics for Partners
Partner Enablement Package:Linkage between the overall SAP Service
Portfolio and partner-specific services within Partner Program
Solution Manager:Linkage between all existing
SAP’s infrastructure
Safeguarding:improves partner business by
mitigating risks in customer projects
Safe Passage:Improved quality & reduced efforts in migration projects
Upgrade Services:enables partners & and theircustomers to take all benefits from the newest SAP ERP release
Operation Support :Enables partners to operate latest SAP products cost-effective, flexible and with highest quality
System Provisioning:Fast access to SAP hosted system services for a flexible and resource efficient support of partner development or implementation projects
MaximizeSAP
Partner Success
© SAP AG 2005, Title of Presentation, Speaker Name / 22
Associate LevelProgram Entry Point
Standard RequirementsBusiness Benefits
Gold LevelHighest
CommitmentMost Benefits
Silver-LevelHigher CommitmentElevated Benefits
Evolution of the Partner Programs
Software Partners Program
SAP Powered by NetWeaver Partners
Value-addedResellers
SystemsIntegrators
TechnologyPartners
xAppsPartners
© SAP AG 2006, “IT as a Strategic Driver of Value Creation”, Shai Agassi, 19
CUSTOMER & PARTNER GROUPS
ES COMMUNITY
SAP
ENTERPRISESERVICES
REPOSITORY
Industry Value NetworksPowered by SAP NetWeaver
ASUG/DSUG OTHER
ENTERPRISESERVICESPROPOSAL
TechnologyPartners
ISVs
Customers
SAP
SIs
Definition Groups
ES Community allows the ecosystem to influence and define enterprise services critical to success
ENTERPRISE SERVICES COMMUNITY LAUNCH
Engagement: Partner Edge
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 20
SAP Enabling Your Success
Ecosystem
© SAP AG 2006, “IT as a Strategic Driver of Value Creation”, Shai Agassi, 19
CUSTOMER & PARTNER GROUPS
ES COMMUNITY
SAP
ENTERPRISESERVICES
REPOSITORY
Industry Value NetworksPowered by SAP NetWeaver
ASUG/DSUG OTHER
ENTERPRISESERVICESPROPOSAL
TechnologyPartners
ISVs
Customers
SAP
SIs
Definition Groups
ES Community allows the ecosystem to influence and define enterprise services critical to success
ENTERPRISE SERVICES COMMUNITY LAUNCH
© SAP AG 2005, Title of Presentation, Speaker Name / 22
Associate LevelProgram Entry Point
Standard RequirementsBusiness Benefits
Gold LevelHighest
CommitmentMost Benefits
Silver-LevelHigher CommitmentElevated Benefits
Evolution of the Partner Programs
Software Partners Program
SAP Powered by NetWeaver Partners
Value-addedResellers
SystemsIntegrators
TechnologyPartners
xAppsPartners
© SAP AG 2005, Title of Presentation, Speaker Name / 20
Global Service & Support Focus Topics for Partners
Partner Enablement Package:Linkage between the overall SAP Service
Portfolio and partner-specific services within Partner Program
Solution Manager:Linkage between all existing
SAP’s infrastructure
Safeguarding:improves partner business by
mitigating risks in customer projects
Safe Passage:Improved quality & reduced efforts in migration projects
Upgrade Services:enables partners & and theircustomers to take all benefits from the newest SAP ERP release
Operation Support:Enables partners to operate latest SAP products cost-effective, flexible and with highest quality
System Provisioning:Fast access to SAP hosted system services for a flexible and resource efficient support of partner development or implementation projects
MaximizeSAP
Partner Success
Support: Partner Enablement Packages
NEW!
© SAP AG 2006, Ecosystem, ES Partner Summit, Zia Yusuf/ 21
SAP Enabling Your Success
Ecosystem
© SAP AG 2006, “IT as a Strategic Driver of Value Creation”, Shai Agassi, 19
CUSTOMER & PARTNER GROUPS
ES COMMUNITY
SAP
ENTERPRISESERVICES
REPOSITORY
Industry Value NetworksPowered by SAP NetWeaver
ASUG/DSUG OTHER
ENTERPRISESERVICESPROPOSAL
TechnologyPartners
ISVs
Customers
SAP
SIs
Definition Groups
ES Community allows the ecosystem to influence and define enterprise services critical to success
ENTERPRISE SERVICES COMMUNITY LAUNCH
© SAP AG 2005, Title of Presentation, Speaker Name / 22
Associate LevelProgram Entry Point
Standard RequirementsBusiness Benefits
Gold LevelHighest
CommitmentMost Benefits
Silver-LevelHigher Commitment
Elevated Benefits
Evolution of the Partner Programs
Software Partners Program
SAP Powered by NetWeaver Partners
Value-addedResellers
SystemsIntegrators
TechnologyPartners
xAppsPartners
© SAP AG 2005, Title of Presentation, Speaker Name / 20
Global Service & Support Focus Topics for Partners
Partner Enablement Package:Linkage between the overall SAP Service
Portfolio and partner-specific services within Partner Program
Solution Manager:Linkage between all existing
SAP’s infrastructure
Safeguarding:improves partner business by
mitigating risks in customer projects
Safe Passage:Improved quality & reduced efforts in migration projects
Upgrade Services:enables partners & and theircustomers to take all benefits from the newest SAP ERP release
Operation Support :Enables partners to operate latest SAP products cost-effective, flexible and with highest quality
System Provisioning:Fast access to SAP hosted system services for a flexible and resource efficient support of partner development or implementation projects
MaximizeSAP
Partner Success
Co-Innovation: Industry Go-To-Market