NetWeaver Adoption – What it is and Lessons Learned

1. NetWeaver Adoption – What it is and Lessons Learned Dale Young Vice President, Technology Services Capgemini, LLC

2. A Dose of Reality to Start: NetWeaver is Not an Option • NetWeaver will be in your architecture! • It is the foundation for all current and future SAP solutions. For example: • SAP solutions integrate with each other through NetWeaver • User Interactions will be driven through the portal/mobile engine • Enterprise Reporting is driven through BW and SEM • The questions are: • What stays? What goes? How will it be leveraged?

3. What does NetWeaver really do? Increases Intimacy, Interaction and Integration • Tighter, real-time integration between systems & companies • Greater degree of self-service and collaborative tools • Increase awareness and insight around businesses processes, customers and/or suppliers Changes the way people interact • Provide a unified, role-based work environment that brings together all the appropriate transactions, analytics, services and content to allow people to be more efficient and effective in their daily activities. Helps Simplify Application and Data Architectures • Increase architectural agility through adoption of a services-based architecture • Simplify data integration issues by harmonizing and synchronizing master data across multiple enterprise applications • Reduce the number of "moving parts" in their overall IT architecture to decrease total cost of ownership. 

4. More Reality: NetWeaver fundamentally changes the way SAP solutions are deployed Traditional SAP Deployment NetWeaver Based Deployment People • Function based, Difficult navigation • Multiple user interfaces • Role-based, intuitive • Web-based, consistent look & feel • Multiple devices Process • Vertical/Module focus • Organizational/BU focus • Manual extensions • Event-based focus • Enterprise focus • Self-service/Collaboration Info • Redundant, non-standardized • Departmental • Reactive • Limited access • Single record of truth • Enterprise-wide, real-time • Robust search & retrieval Arch • Complex Application Portfolio • Inflexible architecture • Point-to-point interfaces • Simplified application portfolio • Rationalized infrastructure • Agile architecture • EAI/B2BI

5. What is the value proposition of NetWeaver? • Business benefits associated with increased intimacy, integration, collaboration and self-service • Inventory reduction, more accurate sales forecasts, increased employee effectiveness, etc… • At a lower total cost of ownership and speed to greater speed to value • SAP NetWeaver components are pre-integrated with each other and with SAP functional solutions • HOWEVER, Lower TCO can only be achieved by addressing the overall IT landscape • Application and technology portfolio rationalization and simplification • Elimination of redundant architecture components • More efficient integration • Skill set consolidation/rationalization

6. How do you start? Leveraging NetWeaver requires analysis and coordination across multiple dimensions. • Opportunity Areas: • All existing SAP customers (including “old” releases) have the opportunity to leverage components of NetWeaver • Anyone considering an upgrade, new installation, or additional deployment should look to leverage the capabilities of NetWeaver Infrastructure People Effectiveness Unification: User, Process, Data Web Content Applications & Services Governance Knowledge & ContentManagement Business Intelligence People Integration Multi-Channel Access Portal Collaboration • Critical Success Factors: • Simple analysis of product features & functions will not ensure full business value • NetWeaver needs to be addressed in the context of an organization’s entire IT application and integration suite. Information Integration Business Intelligence Knowledge Management Master Data Management SAP NetWeaver Process Integration Business Process Design Information Broker Business Process Management Application Platform J2EE ABAP DB and OS Abstraction Enterprise Architecture & Integration

7. Supplier Self- Registration Collaborative Sourcing Workflow Advanced Shipping Notices eInvoicing Electronic Bill Payment & Presentment Sourcing Create PO Approve PO Receive Invoice Pay Supplier Score Cards Collaborative Dispute Resolution Self-Service Procurement Supplier Self-Service Contract Monitoring & Notification NetWeaver changes the way business processes are designed and the way people interact • Real-time processing and integration of business intelligence • Collaborative working relationship with customers, suppliers and partners • Increased level of self-service • Tighter, more cost effective A2A and B2B integration

8. There is a wide spectrum of possibilities for process and interaction redesign Simplification Enhancement Extension Transformation “4 –Walls” “Supply Chain” “Coll. Design” “Adaptive” Reinvention Collaboration Notification & Integration Unification & Self-Service

9. What: Event & Decision Analysis PO Changes ASN’s Quality Short Ship How: EP Plus BI: Alerts KM: Status Mgt and Notifications Transformation Simplification Process and interaction redesign: Intelligence enabled purchasing Notification & Integration Unification & Self-Service

10. What: Interact / Synchronize Inventories How: EP, BW, XI, MDM Plus Inventory Collaboration Hub Alert Monitoring ASN processing Transformation Simplification Process and interaction redesign: Adaptive value chain Reinvention Collaboration Notification & Integration Unification & Self-Service

11. Not all business processes require the same level of flexibility Differentiating Processes Market Operations PLM CRM SCM KPI command and control BI ERP x Measure By ROI Invest in Agility Importance To Business Success Return on Investment Total Cost of Ownership IT and Process Outsource Transactional Services Optimise & Cost Reduce: Buy as a Service Buy as a Transactional Service ERP y Finance and HR Shared Service FX Administration Supporting Ops Degree of Volatility • Your adoption strategy needs to account for the need to change processes as well as the level of local variation that is required across the business

12. People Integration Enterprise Portal SharePoint WebSphere Portal Information Integration SQL Server Analysis Services MS Content Management BW/SEM KM Analytics IBM Content Management Master Data Management Process Integration MS Biztalk WebSphere Business Integration Server Exchange Infrastructure (XI) Windows Server WebSphere Application Server Application Platform NetWeaver WAS Architecture & integration simplification requires a holistic view You probably already have some of “NetWeaver like” capabilities today. The question is: …what should stay?…what should go?…what will work together?

13. You need an architecture (not just a product evaluation) You need a route map – driven and aligned to business need You need to be able to measure and report progress on that journey You need to be ready to adjust course as needs and technology change, while remaining focused on the overall vision You need governance to make sure that you stay on course etc. Remember, NetWeaver impacts your entire IT landscape Mobility Portal Business Intelligence Core Applications Integration – Process Management Integration - Broker Application Platform/Toolset

14. Governance: Driving consistent behaviors to ensure predictability and mitigate risk • What is Governance? • In its simplest form, is “Who” is responsible for “What” and the definition of the decision making processes around the “What.” NetWeaver Governance Framework: A set of principles defined in the context of a company’s business strategies, technology strategies and operating model translated into specific roles, responsibilities and reporting relationships.

15. 30+ Potential NetWeaver Governance Areas • Enterprise/Content Management Portal • Work set Design • Desktop Strategy and Load sets • Web Content Management/KM • Collaboration Tools • Search and Taxonomies • Community creation and management • Business Intelligence • ETL (Tools, Staging, Transfer, Cleansing, Validity) • Meta Data Data Model (Star Schema, Extended Star, …) • Authoring (Query, Web Designer) • Reporting (Mining, OLAP, Dashboard, Forms…) • Deployment (Portal, Gui, Browser, Mobile) • Master Data Management • Master Data Objects (including partners) • Distribution Processes (Single, Periodic, Subscriptions) • Matching Rules • Exchange Infrastructure • XML & Industry Standards • Business Process Modeling Tools and Standards • Adapter Framework/development • Mapping & Translation • Interoperability with other Integration tools • Cross Component • Role Definition (R/3, Portal, etc…) • Infrastructure & Security • Training • Configuration Management • System Monitoring • Development Tools • Modeling and generation tools • Development Standards • Object re-use/pattern development • Web Services Repository • xApp Maintenance (vendor and custom)

16. Four Lessons Learned • Skills and tools are more varied than in a traditional R/3 implementation • All team members have to understand NetWeaver • Your IT organization must change • Product knowledge alone is not enough

17. NetWeaver Web Application Server (WAS) Enterprise Portal (EP) Exchange Infra (XI) Knowledge Mgt (KM) Business Warehouse (BW) Collaboration Mobile Infrastructure (MI) Master Data Mgt (MDM) Business Process Mgt (BPM) Composite Application Framework (CAF) Life Cycle Management (LCM) Webdynpro NetWeaver Visual Composer NetWeaver Developers Studio R/3 ~BASIS / ABAP Workbench ~Work place or SAP GUI ~ALE ~Knowledge Warehouse (KW) ~BW ---------------- ----------------- ----------------- ~Event Process Chains (EPC’s) ----------------- ~ASAP Methods, CCMS, Early Watch Dynpro ----------------- ----------------- Skills and tools are more varied than in a traditional R/3 implementation. • NetWeaver projects require skills in EAI, Java, Portals, and strong systems architecture experience.

18. All team members have to understand NetWeaver • The entire project team (not just tech team) must understand how to leverage the capabilities of NetWeaver • Process Design, Role Definition, & Work set Definition • Training and Deployment Strategies • Supplier/Customer/Partner Enablement • Vigilance is required to ensure the investment in NetWeaver is utilized appropriately • For example, providing information to end users – with NetWeaver you have multiple options for getting information to users that you didn't have before • If you don't put reviews in place for the methods for how your design is delivered, you will end up with just another R/3 system in an Enterprise box

19. Your IT organization must change NetWeaver View Traditional View Web Development SAP Configuration Web Development Enterprise Portal/xApps NetWeaver Architecture & Integration ABAP Development Architecture & Integration XI/EAI Legacy Development Basis Legacy Development WAS • Traditional “IT” and SAP groups become more integrated and coordinated • Architecture and integration skills become even more critical • In the long run, to make the most out of Web AS’s development environment, need to invest in Java training • Have to build on traditional Basis skills to handle new Web components

20. Business Process Design and Industry Knowledge • Change Management, Partner Enablement, Training • Integration and Technology Architecture Knowledge including non-SAP technology • SAP Functional and Technical Product Capabilities Product knowledge alone is not enough Your SAP NetWeaver Adoption Strategy

21. Is NetWeaver ready for prime time…YES, but you have to look at each individual component Enterprise Portal • Proven, robust, scalable • Many success stories BW/SEM • Proven solution for both SAP and non-SAP data XI • Rapidly maturing. XI 3.0 looks to be solid platform. • Some question on BPM capability. Pricing may be an issue • Need to consider performance, particularly at high volume MDM • Very early in lifecycle • Promising premise, but solution needs to mature and prove itself out. WAS • SAP has been building large-scale servers for 10+ years • Some question as to applicability of WAS to serve as “generic” server for all Web development xApps • Pre-packaged solutions are solid • Need to be conservative about promise of custom built solutions using CAF • Long-term maintenance may be an issue

22. For more information:dale.young@capgemini.com