SAP Future Directions: 2003 and Beyond

1. SAP Future Directions: 2003 and Beyond Joshua Greenbaum, Principal Enterprise Applications Consulting www.eaconsult.com

2. Agenda • SAP’s Premises for the (Near) Future • X-Apps • CMDM • Conclusion

3. Technology and Applications: Drivers and Assumptions • The Infrastructure is Largely In Place • Heterogeneity is Reality • Interoperability Standards (XML, WS, etc.) Are Coming • Business Processes Are The Value-Add, All Else is Becoming a Commodity

4. Business Consequences • No More Big Bang • Economic Buyer is Line of Business, Not CIO • Average Deal Size Dropping, Volume Is Essential • Upselling the Customers is Job #1

5. The Solution: Leverage Your Investment • Low-Cost of Acquisition • Small Technology Footprint • Low-Cost, Rapid Implementation • Leverage Existing Technology and Business Investments • Integrate To Existing Infrastructure • Rapid ROI: Year One

6. X-Apps • The Ultimate LYI Product • The Composite, Cross-Application, Meta-App • The Future of Software Development and Delivery? • SAP’s Competitive (so far Slideware) Advantage

7. X-App Defined Any Application that Uses Data and Business Processes From Other Applications and Data Sources to Provide Value-added Functionality Above and Beyond Existing Applications and Infrastructure

8. X-App Archetype: Trading Desk • Merge Data…. • Trading Data • Chat Rooms • News/Weather • And Processes …. • Transfer Funds • Buy • Sell • And Create New Functionality • Buy on Calculated Exception/Trigger/Event

9. X-App Applications Architecture Source: SAP

10. X-App Business Processes • Resource and Program Management • Project Portfolio Management • Project Execution • Staffing Resources Assignment • Adv. Skills Management • Employee Productivity • Strategy Alignment • Enable Company Agility • Increase Productivity • Reduce Costs

11. X-App Business Processes • Mergers and Acquisitions • M&A Project Management • Deal Management • New Company Management • Project Execution

12. X-App Technical Architecture Source: SAP

13. X-App Issues • Three Kinds of X-Apps • SAP X-App • ISV/SI X-App • Your X-App • The X-App SDK: When, What, How Much? • X-App 3rd Party Market: Certification, Value, Services • X-App Vs. Third Party Best-of-Breed Apps • X-App Vs. Start-up “Killer Apps”

14. Can SAP Deliver? Watch For… • Compelling X-Apps • The Adapter Problem • The Software to Services Ratio • Partner Certification

15. Collaborative Master Data Management • The Infrastructure Superstructure • The Universal Data Source: Repository of Master Data Definitions • Harmonize All the Data Sources: One Version of the Truth • LYI Enabler

16. CMDM Defined • One Version of the Truth • Single Source for All Data: SAP and non-SAP • Single Administrative Site for All Data Management • Repository of Master Data Objects That Define Specific Business Practices: Business-Specific Units of Measure • Connect Heterogeneous Environments • Linking Applications, Maintaining Consistent Data Among Different Data Sources/Applications • Control Corporate Data • Central Management and Process Control For All Systems (Internal and External)

17. CMDM Architecture Source: SAP

18. CMDM Components • Master Data Objects: Define the Business Objects • Product Master • Business Partner • Product Structure • Organizational Structure • Data Services: Manage the CMDM Environment • Data Management Services • Change Management • Distribution • Others • Content Integration, Data Staging (ODS), Adapters, Etc.

19. CMDM Technology • Runs on Web Apps Server (WAS) • Requires Exchange and Third Party Adapters • Workflow is SAP-Only • BW Can Be Used, But Master Data in CMDM • Portal Interface • Database Independent

20. CMDM Q3 Deliverables • Master Data Server (Object Definition and Deployment) • Content Integration • Exchange • Adapters • CMDM Database

21. CMDM: What’s the Value? • De-duping • Huge Cost In M&A and Dynamic Businesses • Non-Management Costs Can Be Even Larger: Accuracy in Operations, Support and Service • SAP ROI Analysis: $4 million in Savings • Lower Overall Integration Costs • Consolidation and Collaboration • Economies of Scale for Data Can Match the Economies of Scale in the Rest of the Enterprise

22. CMDM: What’s the Catch? • Not Until Q3 • Best for R/3 Centric to Start • Master Data Definitions Require A Harmonization Process FIRST (Remember BPR?) • Adapters, Adapters, Adapters • Horizontal To Start, But Better As a Vertical • The More You Do, the More You Integrate

23. CMDM: How To Get Ready • Think Master Data Objects • Think Process First: What are Real-world Benefits • Don’t Integrate Everything (Remember the Data Warehouse Overruns) • Get To Know Portal, WAS, Exchange, BW

24. Conclusion #1: Glass Half Full • SAP Has Some Good Stuff Coming • There is Actual Value Possible • User Risks Will Be Relatively Low • SAP is Playing Leadership Position

25. Conclusion #2: Glass Half Empty • All is Slideware Until Proven Otherwise • The Only ROI That Matters is Your Own • Low Risk Doesn’t Mean No Risk • Technology Leadership Is For Vendors, Not for All Users

26. Conclusion #3: The Bottom Line • X-Apps and CMDM Are in Your Future One Way or Another • SAP Has An Incumbency Advantage, But Won’t Be the Only One • Real Competitive Advantage from IT is Still Possible