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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.
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SAP NetWeaver:Enabling the Smart Enterprise Lothar SchubertSAP Labs Palo Alto, LLClothar.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 Companiesin S&P index 500 … thosestill re-maining … thosethat out-performed S&P index overall 74 12 1957 1998 1998 Source: S&P Index, McKinsey, MMG
Sustainable, Profitable Growth THE WINNING STRATEGY • Refocus on GROWTHas the economic re-bound has arrived • Drive PROFITABILITY of growthas you keep improving margins • Ensure SUSTAINABILITY of growthas you innovate
Relationshipexcellence Sustainable, ProfitableGrowth Inno-vation Inno-vation Inno-vation Operationalexcellence Product/serviceexcellence The Winning Strategy GROWTH THROUGH INNOVATION
Departmental Perspectives “it’s just one missed sale” “will be backin inventory” “extra effort costs $$$” “not a keycustomer” ??? “see & wait”
The Bigger Picture: External and Internal Pressures Competitive Forces • Price competition • Vertical integration Macro Economical Trends • Labor market • Interest rates • SOX • Basel II • Demographics • Buying behavior Compliance Requirements Market Trends
Integrated Management Processes • Corporate Strategy • Increase quality of service • Drive transparency • Invest in innovation • … • Strategic Planning • Scenario simulation • Cash-Flow Forecast • Perform. Management • Operational planning • Process optimization • Operational execution • Management • Goal setting • Alignment of interest • Goal measurement
Business Process “it’s a missedsale” “will be backin inventory” “extra effort costs $$$” “not a keycustomer” ??? “see & wait”
Business Process Defection Risk Inventory Forecast CLTV Returns Per Customer Accuracy Delivery Performance
Business Process Defection Risk Inventory Forecast CLTV Returns Per Customer Accuracy Delivery Performance
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
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, KPI’s and Benchmarks • Balanced Scorecards • Solid and integrated planning framework • Corporate Performance Management
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
Challenge 3: Increased Competitive- and Market Pressures • “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. Account Planning • Opportunity discovery and exploitation requires: • Predictive Analytics, Planning & Forecasting • Analytics embedded into Applications • Closing the Loop via Analytical Application • Smart people using smart applications
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
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
A smart business requires a complete, end-to-end, reliable and open BI Platform. 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, don’t build
Business Challenges for Smart Enterprises Meeting the Key Business Challenges SAP NetWeaver enabling Smart Enterprises SAP Business Intelligence in Action
The Business Intelligence Platform Web Presentation/Portal/Mgmt Reporting Presentation Consolidation Ad Hoc Query and Reporting Modeling and Optimization Statutory Reporting Balanced Scorecard CPM Applications Budget Plan/Forecast Business Proc. Management Content Management Knowledge Management DataMart DataMart DataMart DataMart BI Infrastructure Data Warehouse Integration Broker Data Sources ERP/CRM/SCM/External Sources Architecture Source: Gartner (“Managing Corporate Performance – What you need to know”; Lee Geishecker & Frank Buytendijk, 4/04)
SAP NetWeaver™ PEOPLE INTEGRATION Multichannel access Portal Collaboration INFORMATION INTEGRATION Bus. Intelligence Knowledge Mgmt Master Data Mgmt Composite Application Framework Life Cycle Mgmt PROCESS INTEGRATION Integration Broker BusinessProcess Mgmt APPLICATION PLATFORM J2EE ABAP DB and OS Abstraction SAP delivers the complete, end-to-end, reliable and open BI Solution. SAP NETWEAVER ONE PLATFORM – ONE PRODUCT Open integration and applicationplatform that enables change! • 1PlatformSynchronized release dates • 1 FoundationWeb AS 6.40 • 1 PackageCoherent installation process • 1 Set of scenariosIntegrated components • All AppsBusiness Suite, partner solutions and xApps developed on NetWeaver
Accelerating NetWeaver Adoption with IT Practices High Right-time data access Implement XI Reports for real-time data to complement the batch-oriented data access of analytic applications and operational reporting; Collaboration Implement Collaboration Rooms Value Share documents; collaborate with colleagues for planning and resolution of business issues Ability to Change your Business 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 High
Data Managagement Process & Organization (Maintenance of Data Enterprise Data Model, Reference Data, Policies, and Procedures) Business Intelligence – Overall Solution Business Explorer Enterprise Portal 3rd Party Tools Supply Chain Optimization Performance Mgmt. Capabilities Strategy Development Tax &Treasury Mgmt. Perform. Mgmt. HR Mgmt. Portals Compliance Rep./ Risk Mgmt. Desktop Email Report CRM & Credit Mgmt. Hard Copy Reports Info Cube Mobile Devices Data Access Services Increasing Info Granularity BU Source System BU 1 BU 2 Integration, Messaging and Transport Services ERP, CRM, SCM, HCM & Legacy BU x
Data Managagement Process & Organization (Maintenance of Data Enterprise Data Model, Reference Data, Policies, and Procedures) Master Data ODS Meta Data Repository BU1 BW BUx BG2 BW BW BU1 BUx BW BU1 BU2 BW BUx BW BW BW Business Intelligence – Overall Solution Business Explorer Enterprise Portal 3rd Party Tools Supply Chain Optimization Performance Mgmt. Capabilities Strategy Development Tax &Treasury Mgmt. Perform. Mgmt. HR Mgmt. Portals Compliance Rep./ Risk Mgmt. Desktop Email Report CRM & Credit Mgmt. Hard Copy Reports Info Cube Mobile Devices BG1 Increasing Level of Standardization BW SAP BW BGx BW BG Data Access Services Increasing Info Granularity Data Managagement Process & Organization BU Source System (Maintenance of Data Enterprise Data Model, Reference Data, Policies, and Procedures) BU 1 BU 2 Integration, Messaging and Transport Services ERP, CRM, SCM, HCM & Legacy BU x
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 • KPI’s, 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
mySAP ERP powered by SAP NetWeaver mySAP ERP Edition 2004+ Additional Components mySAP ERP Edition 2003 Self Service Procurement Additional Components Internet Sales Self Services Application … and more Self Service Procurement Composite Applications Internet Sales SAP ERP Central Component Strategic Enterprise Management Self Services … and more SAP R/3 Enterprise Strategic Enterprise Management SAP R/3 Enterprise SAP ECC Extension Set SAP Enterprise Extension Set SAP Enterprise Extension Set SAP R/3up to 4.6C SAP ECC Core Industry Enablement SAP R/3 Enterprise Core SAP R/3 Enterprise Core Application SAP Basis SAP Web Application Server SAP NetWeaver™ SAP NetWeaver™ ‘04 PEOPLE INTEGRATION PEOPLE INTEGRATION Multi Channel Access Multi Channel Access Portal Collaboration Portal Collaboration INFORMATION INTEGRATION INFORMATION INTEGRATION Bus. Intelligence Knowledge Mgmt Bus. Intelligence Knowledge Mgmt Master Data Mgmt Master Data Mgmt Life Cycle Mgmt Life Cycle Mgmt Composite Application Framework Composite Application Framework PROCESS INTEGRATION PROCESS INTEGRATION Integration Broker BusinessProcess Mgmt Integration Broker BusinessProcess Mgmt Technology APPLICATION PLATFORM APPLICATION PLATFORM J2EE ABAP J2EE ABAP DB and OS Abstraction DB and OS Abstraction
Roadmap • BW 3.0 • Easy of use • Openness • Tool Integration • BW 2.0 • Operational Data Store • Rich Functionality • Web Reporting • SAP NetWeaver xx • Expanded Enterprise • Active BI • Advanced user experience • BW 1.2 • All-in-one • Application Integration • Business Content • SAP NetWeaver 04 • Extending the reach • Planning and forecasting • SAP NetWeaver integration • BW 2.1c • Content Release
Business Challenges for Smart Enterprises Meeting the Key Business Challenges SAP NetWeaver enabling Smart Enterprises SAP Business Intelligence in Action
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 NetWeaver:Enabling the Smart Enterprise Lothar SchubertSAP Labs Palo Alto, LLClothar.schubert@sap.com