Real-time Business – How Do Enterprises Benefit From SAP Netweaver?

Real-time Business – How Do Enterprises Benefit From SAP Netweaver? Hubert Österle SAP NetWeaver Conference Basel, 2003-10-01

Agenda • Real-time Business • Enterprise Application Integration • SAP NetWeaver • Conclusion

Real-time Customer Processes Change the Way We Do Business ANYHOW ANYHOW ONE-STOP ONE-STOP NON-STOP NON-STOP EVERYTHING EVERYTHING EVERYWHERE EVERYWHERE ONE-TO-ONE ONE-TO-ONE

Real-time Business Requires Integration Carrier Selection Product Catalog Prices andFreightCharges Common Semantic Model Ordering Exchanging XML messages is the easy part. Common semantics is the hard part.

ATURB@WEB Is a xApp for Service Centers Around the World Customer-Database 60‘000 Customers108‘000 Technical assets Assemblyinstructions Check turbo- charger data Check credit status Manuals Choosespare part Service Network 70 Service centers Checkavailability 500 Employees Send order Spare part order 27‘000 Spare parts Repairturbocharger Product configuration 180‘000 Turbochargers Service reports 49‘000 Service reports Worldwide inventory ABB Turbo Service Center

ATURB@WEB Is a xApp for Service Centers Around the World Customer-Database 60‘000 Customers108‘000 Technical assets • Redesigned customer process • Reused existing applications • Hard coded interfaces ABB Turbo Service Center Assemblyinstructions Check turbo- charger data Manuals Check credit status Service Network • Spare parts inventory reduced by 12% (about 17 Mio. CHF) • Reduction of IT costs (replacement of mainframe) • Reduction of process costs • Support of sales and distribution (cross- and up-selling) Choosespare part 70 Service centers 500 Employees Checkavailability Spare part order Send order 27‘000 Spare parts Repairturbocharger Product configuration 180‘000 Turbochargers Service reports Worldwide inventory 49‘000 Service reports

Zumtobel Staff Had Problems With the Product Catalog • Annual print-out of the product catalog was outdated • Country-specific prices were difficult to manage • Product configuration was complex resulting in many returned deliveries

Zumtobel Staff Started with a Redesign of the Customer Process Zumtobel Staff Agent Zumtobel Staff Agent Portal Product Reference Light Planning Acquisition Marketing Solutions Agent-specificPrice List Bidding Order Status Ordering Inventory Query Order Delivery Status Order Grouping Payments Accounts Bank Line Current Bookings Due/overdue Payable Reclamation Online Complaints Status Reclamation

A "xApp" Serves the Acquisition and Bidding Process of the Agents Presentation Layer Internet mySAP Enterprise Portal User Management Portal Server Corporate LDAP Page Builder KM (TREX) Portal LDAP Persistence Adapter iView-Server Search Communication and Integration Layer SAP Application Server SAP Business Connector Transactions and Information Layer Transaction Systems Information Content Product Data SAP R/3 (FI/CO, SD, MM, HR, ...) SAP BW Files Data Base Data Base Agent Process ... Acquisition Bidding Reference Solutions Agent-specific Price List Light Planning Prod. Marketing

A "xApp" Serves the Acquisition and Bidding Process of the Agents Agent Process ... Acquisition Bidding Reference Solutions Agent-specific Price List Light Planning Prod. Marketing Presentation Layer Internet mySAP Enterprise Portal User Management Portal Server Corporate LDAP Page Builder KM (TREX) Portal LDAP Persistence Adapter iView-Server Search Communication and Integration Layer SAP Application Server SAP Business Connector Transactions and Information Layer Transaction Systems Information Content Product Data SAP R/3 (FI/CO, SD, MM, HR, ...) SAP BW Files Data Base Data Base • Redesigned customer process • Reused existing applications • Integration simplified with EAI • More convenience for the agent • Reduction of delivery failures • Faster and more precise sales process • Roll-out for all sales organizations

Netweaver Can Be More Than EAI • The Internet-Browser simplified front-end integration. • Portal software removes many of the obstacles in user handling (e.g. Single Sign-on). • XML-based messaging is clearly more flexible than EDI or RFC. • Data synchronization has matured in systems like ALE ( MDM). • SAP NetWeaver uses the pre-defined meta-data repository.

Integration Platforms Cannot Resolve Semantic Clashes • Different understanding of "shipment"Customer aks for "shipment nofication"Supplier notifies "goods staged"Customer understands "shipment released" • Different Product IDsSupplier has frame agreement for product "XR4"Customer has product "XR4-Australia" • Missing link between order and order confirmationCustomer orders an item with 100 unitsSupplier´s system splits order-line into two orders with separate order confirmationsCustomer´s system can´t match second order confirmation to original order

The Customer Process Will Drive the Business • SAP has a good chance to succeed with NetWeaver. • SAP customers are becoming more agile, but there is no such thing as a "Lego-Enterprise" • What´s needed is • Customer process redesign • Collaboration negotiation ( Change Management) • Technical implementation ( Change Management)

Contact Information Hubert Österle Institute of Information Management University of St. Gallen Mueller-Friedberg-Strasse 8CH-9000 St. GallenPhone +41 71 224 2420Fax +41 71 224 2777 e-mail: hubert.oesterle@unisg.chURL: www.iwi.unisg.ch IMG AG Fuerstenlandstrasse 101 CH-9014 St. Gallen Phone +41 71 274 8111 Fax +41 71 274 8181 e-mail: hubert.oesterle@img.com URL: www.img.com

Real-time Business – How Do Enterprises Benefit From SAP Netweaver?