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Alternatives to SAP – building the e-business platform. Philip Carnelley Software Research Director. pxc@ovum.com www.ovum.com. TINA?. SAP’s value proposition is to help with all this. How does it stack up?. Business pressures on the IT function. Do more with less Reduce risk
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Alternatives to SAP – building the e-business platform Philip Carnelley Software Research Director pxc@ovum.com www.ovum.com
SAP’s value proposition is to help with all this. How does it stack up? Business pressures on the IT function • Do more with less • Reduce risk • Exploit innovations
But … ERP legacy~15 systems ERP non-SAP~25 systems,different versions SAP R/3~30 systems,Versions 3.11 – 4.6B E-Procurement 10 units Technicalsystems SAPMarketsEnterprise BuyerProfessional Edition Trading e-Sales Collaborative Engineering Source: SAP … complexity and heterogeneity are increasing
What’s increasing complexity? New platforms, multi-channel delivery and web-centric applications Need to link businesses across the supply chains : creating the ‘extended enterprise’ Organisations are trying to move to a services-oriented architecture You’re trying to build an e-business platform
What makes an e-business platform? Data access middleware Data replication Aggregation Co-ordination Portal Workflow User interactions Process Management Process Management Application processes Application Server EAI Transactions/ functions Data Pitched by the largest “platform” players… including SAP
Fragmentation reigns … Ascential 250 BEA • Most independent integration-focused vendors are… • Ambitious and aggressive • BUT... • Struggling • Small • Pathologically averse to making money from services • “scalability” & market valuation is the focus • the dot.com hangover at work Business Objects Cognos eXcelon 200 FileNET Hummingbird Interwoven 100 Mercator Plumtree SeeBeyond Staffware 50 Stellent Sybase (eBD) TIBCO Vitria 0 webMethods Q401 Q102 Q202 Q302
How to decide if SAP can meet your needs for an e-business platform …
You might not want / be able to run mySAP/Netweaver as your e-business platform everywhere For knowledge management across the heterogeneous environment you may need to take a neutral third-party offering You may have several solutions today and be considering whether to consolidate mySAP Business Suite mySAPSRM mySAPSCM mySAPHR mySAP PLM mySAPCRM mySAPFIN mySAP Solutions SAP R/3 Enterprise SAP Web Application Server People Integration: SAP Enterprise Portal, Collaboration, … SAP NetWeaver Information Integration: BI, KM, MDM, ... Process Integration: XI, Business Process Mgmt. I assume you have core ERP from SAP … But… Source: SAP Key issue: how to decide about the platform ?
How IT is meeting the core business needs Four classic IT initiatives today • Improving information access and worker collaboration • Taking control of unstructured data • Better business monitoring and control • Managing business processes and transactions – even across the stovepipes
The Ovum Evaluations approach • Capability assessment: • Build a model of an ideal world offering based on need and possibility • Examine the offerings and how they compare • Assess the robustness, potential and the future of the supplier • Characterise the offerings to show how they fit into real-life scenarios • Which scenarios correspond to your own? This is a toolkit of techniques, not a regimented process
Basic initiative 1 — Improving access and worker collaboration
What we look for in Portals • user interface • search and categorisation • structured information access • unstructured information access • data and content management • integration • workflow and task management • collaboration and groupware • portal component development • Portal management These are fairly plug-and-play Supplier robustness is important
The leading portal providers Ovum estimates Source: Ovum Evaluates Portal Software
Issues to consider with SAP’s portal • You’re largely on your own with interfacing to other enterprise applications • But a great interface to mySAP ! • Drag&Relate technology is very impressive, but not magic • you need to have consistent database definitions and it can be hard work to set up • Unix/J2EE support only recently arrived So the usage scenario – SAP-centricity – is key
Capability assessment of CM systems Internationalisation Document management Storage and control Web authoring and design Application development Workflow support Web publication Knowledge management Integration with other business applications A CMS can do all of this – but what do you need?
IBM/Lotus* ** Microsoft* Documentum FileNet IXOS Interwoven Stellent Open Text Hummingbird Vignette $million 0 50 100 150 200 * Ovum estimated revenues ** IBM figures include revenues from both IBM DB2 Content Manager and Lotus Domino.Doc Source: Ovum (Ovum Evaluates: Content Management/Market forecast) The leading ECM providers Source: Ovum Evaluates Content Management
Issues to consider with SAP and content management • Provides basic storage and archiving of R/3 content only • Partners with IXOS, FileNET and Documentum to provide full back-end content management • Solution spread between basic R/3 features and portal features • Not intended to manage external content • Not designed for web publishing You almost certainly will want to augment mySAP here
End-to-end BI process Realtime data analysis Analytical applications Scalability Globalisation What to look for in BI Today’s business needs support for: Actionable decisions Transform and load Reporting and analysis Data warehouse & marts Timely information Transaction Data
The leading BI providers Source: Ovum Evaluates BI Source: Ovum estimates Even within BI, the market’s fragmented
Issues to consider with mySAP as a complete BI solution • Heavily focused on data within the SAP environment • Good (e.g. pre-configured templates) within this • Specially tailored versions for some vertical industries • Not good in a multi-vendor multi-database environment • Partner products needed to boost standard functionality, e.g. • Ascential for ETL • Crystal Decisions for reporting • Advanced functions (data mining etc) also need partner solutions This is one of the easiest technical areas to ‘plug and play’
Basic initiative 4 — Managing, monitoring and controlling business processes
What processes are you looking to manage? • Ad hoc collaborative • Formal structured person to person • Pure application to application business system integration E-process technology Production workflow Business management software Internal App2App EAI High B2B Marketplaces Messaging/ routing (IT infrastructure) Complexity of processes B2C Internal P2P Low Low High Transactional throughput
The leading business process solution providers – four philosophies From four backgrounds … Pure plays (very small!) Bizapps providers BPM/EAI/ Workflow Asera Savvion SAP Oracle Siebel IBM Microsoft Tibco Traditional Workflow providers Platform providers Filenet Staffware Orchestrating process, people, applications
Issues with to consider with SAP’s workflow • It’s designed to automate processes within SAP • Interfacing to other systems is on SAP’s terms • It’s not designed for ‘lite’ or ad-hoc processes • Also not designed for classical high-throughput, image –heavy document or case handling (eg in insurance) • But there is also the Exchange Infrastructure • Two solutions can be a bit confusing but ultimately v powerful • Also plays in the EAI space – big overlap • Focused on creation of ‘composite applications’ What really is your need?
Issues to consider with SAP as a BPM provider • It’s becoming a strong point of the SAP platform • But how much do you need to create “composite cross applications”? • How easy is it to fold in processes from other systems – and indeed from your partner companies? • This is often an area driven by your SI – how do they want to play it?
Is an EAI solution the answer? ERP legacy~15 systems EAI solutions offer: ERP non-SAP~25 systems,different versions • developer tools • adapters and connectors • For functions, data translation, process control • runtime quality of service • heterogeneity • synchronous and asynchronous connections • transactional integrity SAP R/3~30 systems,Versions 3.11 – 4.6B EAI hub E-Procurement 10 units Technicalsystems SAPMarketsEnterprise BuyerProfessional Edition Trading e-Sales Collaborative Engineering
EAI market leaders • Consolidating on a few majors • MS, IBM really taking control • A few tier 2 players • A lot will fall away • Microsoft is the company driving change • .Net brings EAI to the masses
Issues with Netweaver as an EAI solution • Netweaver is not really intended to address the classical EAI scenario • Though it includes much EAI capability, repository based • It will probably change (and improve) a lot over the next 12 months • So – what are you trying to achieve? mySAP application Market-places etc Other applications Partner apps Customer apps
Building the e-business platform You need to assess: • Can the SAP offering meet your needs within the mySAP context? • How strong is your need outside the SAP environment? • If you are looking elsewhere and need a third-party offering, will the SAP offering also help or just increase your costs? • Use the three evaluation techniques • Product capability; company capability; usage scenarios
Type conclusion statement here Going with the flow is not the only alternative – check out the others!