Expanding the Boundaries of Traditional ERP: Expanding the Boundaries of Traditional ERP Peter Milenkov Sales Director, SAP BULGARIA Sofia, November/2006


Summary of SAP Today: Summary of SAP Today SAP AG € 8.513 billion revenues in 2005 100,200 installations 36,200 companies run SAP 12,000,000 users in +120 countries Providing 25 Industry Solutions 38,468 SAP employees (September, 2006) in +50 countries #1 in ERP market with 22,6% global market share* SAP BULGARIA 10 years of presence on the local market +80 companies run SAP on the local market +9 local partners *SAP Global Software Market Share Core Enterprise Application Software Market Rolling 4 Quarters as of Q3 2006E Application Software Revenues


SAP Continues to Outperform the Market: SAP Continues to Outperform the Market * Source: SAP analysis, market analysis and financial analyst estimates Currency Conversion based on quarterly Euro-Fixings (Frankfurt a M.) Rest of Market defined as a subset of approximately 30 software vendors SAP demonstrated the power of organic growth 21% of today’s addressable market (€13.1 bn) Enlarge addressable market Growth in all regions Growth drivers: U.S. and APA SAP further strengthened leading position in the enterprise and midmarket FY 2005 TOTAL REVENUE* SAP Rest of Market FY 2005 LICENSE REVENUE* SAP Rest of Market * €-based -1%


Slide4: North America Palo Alto and satellites India Bangalore Bulgaria Sofia Canada Montréal China Shanghai Israel Ra’anana Germany Walldorf and satellites SAP's Global R&D Organization Hungary Budapest


Global and Local, Large & Mid Size Customers - A Selection : Global and Local, Large & Mid Size Customers - A Selection


SAP Clients in Bulgaria (1) ...: SAP Clients in Bulgaria (1) ... NEC (National Electric Company) MINISTRY OF FINANCE BNB (Bulgarian National Bank) KIROV AD MINI MARITZA IZTOK EAD MOBILTEL AD GERMANOS BULGARIA AGROPOLICHIM AD KCM S.A. (Non-ferrous Metals Smelter) STOMANA INDUSTRY AD KAVEN IRADIS & KAVEN ORBICO BTC (Bulgarian Telecommunications Company)  BLAGOEVGRAD-BT AD STEMO LTD. LATONA BULGARIA FK MEGATRON 1 PETROL AD ОМV BULGARIA COMMERCIAL LEAGUE – NATIONAL PHARMA CENTRE CHAIKAPHARMA AD SOFARMA AD GLAXOSMITHKLINE (GSK) LIBRA BULGARIA CARLSBERG ZAGORKA AD


SAP Clients in Bulgaria (2) ...: SAP Clients in Bulgaria (2) ... SOLVAY SODI HENKEL BULGARIA VIDIMA AD IDEAL STANDARD AD ROCA BULGARIA AD (FAYANS) HAMBERGER (HARO SANITARY) METRO CASH & CARRY AD PRAKTIKER BILLA PICCADILLY EAD VP MARKET BULGARIA KAUFLAND BULGARIA WAZ BULGARIA ALIANZ BULGARIA HOLDING BRITISH AMERICAN TOBACCO BULGARIA CUMERIO AD DEVNYA CEMENT AD (ITALCEMENTI GROUP) ZLATNA PANEGA CEMENT AD (TITAN CEMENT) BELOIZVORSKI CEMENT (HOLCIM) COCA COLA HBC BULGARIA, CLARINA DANFOS BULGARIA COATS BULGARIA ZIT SERVICE CHEPELARE MUNICIPALITY RODOPI MUNICIPALITY, PLOVDIV BULGARSKI IMOTI AD (WIENERSTADTISCHE) TRAKIA PAPPIR (DUROPACK)


SAP Clients in Bulgaria (3) ...: SAP Clients in Bulgaria (3) ... DEXIA KOMUNAL KREDIT BULGARIA E.ON BULGARIA CEZ BULGARIA CHIPITA BULGARIA SIEMENS BULGARIA PALFINGER BULGARIA BASF BULGARIA FESTO BULGARIA AMYLUM BULGARIA SOCOTAB BULGARIA GRAMMER BULGARIA ABB CONTROL – PETRICH ASTRA ZENECA NOVARTIS ATOMIC INTERLEASE AD COMAT (WILLI BETZ) BRENNTAG DAW CHEMICALS IBM BULGARIA WORLD BANK (Sofia Branch) RANK XEROX BULGARIA LIMEX EOOD LOT WRIGLEY BULGARIA ERICSSON BULGARIA TNT BULGARIA MICROSOFT BULGARIA EKO ELDA БЪЛГАРИЯ LUKOIL BULGARIA


Slide9: Today’s business face… ongoing global economic recovery while geopolitical uncertainty persists … ~240.000 bankruptcies in Western Europe Executives are under increasing pressure to meet strategic goals, drive profitability and tighten corporate governance – all while containing costs and maintaining operational control Financials scandals due to a lack of transparency and control The Business Environment


Today’s Challenges for Enterprises: The enterprise is transforming from an internally focused organization to an ecosystem of dynamic relationships Today’s Challenges for Enterprises Partner Management All products & services are configurable Mergers & Acquisitions Shorter Product Life Cycles Focus on core competencies Changing Business processes Outsourcing Customer is the ultimate focus


What Do Customers Expect from ERP Today?: What Do Customers Expect from ERP Today? Increased Insight Better reporting and analysis of business performance Improve operational efficiency by better processes & practices Greater visibility of all activities across the entire business Improved support to mitigate risks and assure regulatory compliance Smarter Deployment, Reduced TCO Ability to consolidate instances Ability to retire custom or legacy applications Ability to standardize business processes globally Step by step adoption of innovation Process Excellence Command of all essential functions of the enterprise Greater functionality, flexibility and adaptability Better usability and access, for more people, in more ways Find new ways of doing Business


Typical Pain Points Addressed by mySAP ERP: Typical Pain Points Addressed by mySAP ERP Meeting strategic goals Prepared for new business opportunities Sustainable lowering operating costs while growing Demonstrated and visible compliance Extending and integrating business requirements Being ready for technology innovation Standardizing and simplifying IT Landscape Consolidating and leveraging existing assets New business models and industry practices Collaborating with external business partners Integration with other lines of business Increasing efficiency Helping employees complete tasks faster Increasing productivity Appropriate role based functionality easily available Providing employees with intuitive usability Users C- Level Information Technology Management Line of Business Management


For Over 30 Years, SAP Has Been Driving ERP – and We Continue to Do So … Evolution of the ERP: 70s For Over 30 Years, SAP Has Been Driving ERP – and We Continue to Do So … Evolution of the ERP SAP Invents Real-Time ERP SAP defines and establishes a new approach to Integrated Standard Business Software. ERP = The Business Software Industry The approach that SAP established becomes industry standard. New competitors enter the market. ERP Rapid Adoption Companies start to adopt ERP on a massive scale Dot.com Hype: ERP = Old E-Business = New Trends seemed to indicate that ERP was an out-of-fashion model mySAP ERP E-Business is now seen as an extension of ERP, not a replacement. SAP is leading the new industry standard for collaborative business applications. 80s 90s 00s Automation Efficiency and Control Create Strategic Value


Yesterday’s ERP Doesn’t Meet All of These Demands: Yesterday’s ERP Doesn’t Meet All of These Demands Focus on Internal Processes Finance Sales Human Resources Procurement Rich, But Generic Functionality Built for Highly Trained Users Logistics


The Need: An ERP Solution Built for Today’s Needs : The Need: An ERP Solution Built for Today’s Needs


A Brief History of SAP ERP Solutions – Let’s look at how we arrived at mySAP ERP…: A Brief History of SAP ERP Solutions – Let’s look at how we arrived at mySAP ERP…


Key Differences Between R/3 and mySAP ERP: Key Differences Between R/3 and mySAP ERP Client/Server Architecture R/3 Basis Transactional user Data-centric Functional modules Process efficiency Enterprise Services Architecture SAP NetWeaver Business User Information-centric Adaptable industry processes Analysis, decisions and actions mySAP ERP 2005 SAP R/3


Composition of mySAP ERP: Composition of mySAP ERP SAP’s next generation Enterprise Resource Planning solution Powered by SAP NetWeaver Designed for all industries Provides significant business benefits through Insight to business processes and for corporate compliance Adaptability end-to-end business processes Flexible deployment of business processes Enhanced user productivity mySAP ERP Analytics Financials Human Capital Management Operations Corporate Services SAP NetWeaver


Traditional Business Process Approach: Traditional Business Process Approach Static Business Transaction / Processes Technical Infrastructure Purchaser Prod. Planner Accountant “Hard wired” Enterprise Systems with custom interfaces People as “Human Integrators” Your Organization


Enterprise Services Architecture – Enhance Enterprise Agility: Purchaser Prod. Planner Accountant Enterprise Services Architecture – Enhance Enterprise Agility Increased Productivity and Business Insight Leveraging Existing Infrastructure Assemble new processes and UI’s based on abstract services delivered through open standards Boundaries fade Other Infrastructure


SAP Product and Technology Strategy: SAP Product and Technology Strategy SAP provides the Business Process Platform to Design, Implement and Operate Next Generation Business Applications SAP NetWeaver Business Process Platform Process Building Blocks Sub-sidiary Bus. Partner Home Grown / ISV SAP Standardization Business integrity and stability secured by the platform Unified Enterprise Services Repository One paradigm for Internal and External Integration Customization Model-Driven Composition


mySAP ERP 2005 at a Glance: mySAP ERP 2005 at a Glance Highlights Major functional enhancements Delivers 28 industry solutions 300+ enterprise services Supports broad user community Cost-effective, low risk upgrade mySAP ERP Financials Human Capital Management Logistics Sales Procurement Corporate Services Manufacturing Service


mySAP ERP: Functional Enhancements: mySAP ERP: Functional Enhancements Link: http://solutionbrowser.erp.sap.fmpmedia.com/


mySAP ERP: Industry Ready: mySAP ERP mySAP ERP: Industry Ready SAP Industry Solutions


Announcing… mySAP ERP 2005: Announcing… mySAP ERP 2005 Empowerment of Employees Self-Services | Analytics | Roles | Duet Industry Ready Global | Support for 28 Industries | ESA-Enabled Suite New and Enhanced Processes Financials | HCM | Procurement | Sales | Corporate Services Proven Upgrade Paths SAP Services | Solution Manager | Modification Assistant


Slide26: $ Integration platform cost Cost of applications The Complete TCO Picture Overall TCO = Applications Platform


Slide27: $ Savings Integration platform cost Cost of applications mySAP ERP SAP NetWeaver Portal, BI, KM, mobile, XI, MDM, … ERP Financials, HCM, Operations, Self Services, Analytics… Components Platform Innovate while Containing Costs SAP solutions uniquely reduce costly platform to application integration Overall TCO =


Slide28: $ Savings mySAP ERP SAP NetWeaver Portal, BI, KM, Mobile, XI, MDM, … Components Platform Integration platform cost Cost of applications SAP NetWeaver is the best platform for SAP & non-SAP application integration Overall TCO = ERP Financials, HCM, Operations, Self Services, Analytics… Innovate while Containing Costs


Slide29: $ Savings mySAP Business Suite SAP NetWeaver Portal, BI, KM, Mobile, XI, MDM, … Components Platform Integration platform cost Cost of applications mySAP Business Suite has the most comprehensive business functionality Overall TCO = Innovate while Containing Costs


Innovate while Containing Costs: Deploy mySAP ERP to reduce the cost of integrating your applications with your platform(s). Leverage the openness of SAP NetWeaver for SAP/non-SAP integration Deploy further SAP solutions with proven, validated scenarios that generate business results Summary Innovate while Containing Costs


Move to a Sustainable Cost Structure: Move to a Sustainable Cost Structure 60% 40% OPERATION INNOVATION TCO today TCO 3 years from now Reduce TCO and enable innovation


CHANGE: How Difficult Is It to Change…?: CHANGE: How Difficult Is It to Change…? 32.8 42.4 42.4 56.1 Business process Organization structure Underlying IT systems Corporate culture Source: GartnerG2/Forbes.com Enlightened IT Use Survey, August 2003


Slide33: News in ERP 2005.


Low Hanging Fruits – Duet : Low Hanging Fruits – Duet New Process MS Office (Outlook, Excel, Word) SAP MSS/ESS Initial scenarios: Time management Use Outlook calendar as front-end for SAP time reporting Budget monitoring Receive Reports and Alerts in your Outlook Inbox and work offline Leave management Add leave requests as calendar items integrated with SAP approval guidelines Team management Up-to-date information about employees integrated in Outlook contacts Bridging the Office and ERP…


mySAP ERP: Empowers People: mySAP ERP: Empowers People


mySAP ERP Makes All Users More Productive: mySAP ERP Makes All Users More Productive Roles and Work Centers Offers intuitive, role-based central point of access “Pushes” relevant information actively to the user Brings the work to the user and allows users to self-organize their work Replaces reactive work with proactive work Guides users through common tasks Enables users to work more efficiently and effectively and reduces the time spend on routine tasks New Roles Employee and manager self-services Buyer Internal sales representative Plant manager Maintenance technician Production supervisor Project self-services Quality inspector The mySAP ERP application enhances user productivity by providing role-based usability and self services that deliver business processes to the desktops of employees, managers, and professionals based on their needs, expectations, and goals.


Roles and Work Centers: Roles and Work Centers ALERTS WATCHLIST SINGLE POINT OF ENTRY Real-time Financial Information at your Finger Tips


Example: i.e. Production Supervisor: Example: i.e. Production Supervisor DRAFT


Slide39: mySAP ERP 2005 Evolution or Revolution


New Release StrategyStabilizing the core while delivering continuous innovation: New Release Strategy Stabilizing the core while delivering continuous innovation mySAP ERP 2005 is the Go-To Release for SAP R/3 Customers. 2006 2007 2008 2009 2010 mySAP ERP 2005 SAP NetWeaver Enhancement Packages Next Major ERP Release


Introducing… Enhancement PackagesMore innovation, more quickly, more accessible to customers: Introducing… Enhancement Packages More innovation, more quickly, more accessible to customers Industry-specific capabilities Talent Management Enterprise Services Financial Collaboration Optional Adoption Areas of innovation Functional enhancements Technical enhancements Enterprise services


Enhancement PackagesDelivering new capabilities along with critical updates : Enhancement Packages Delivering new capabilities along with critical updates Legal/Tax Changes, Corrections Enhancement Packages Support Packages New/Improved Functionality Switch Framework Enterprise Services Mandatory Optional


What Makes mySAP ERP Stand Out As the Leader?: Functional scope and depth Best-in-class solution Best-of-breed in individual application areas Industry-depth Unsurpassed integration within and beyond the SAP functions Global reach Performance, security, reliability, flexibility, adaptability True leverage of new technologies (e.g., role-based Portal, SAP Business Warehouse, content, …) Incorporates 30 years SAP experience in companies of all sizes all over the world What Makes mySAP ERP Stand Out As the Leader?


Now is the Right Time for mySAP ERP: mySAP ERP should be an attractive option for new customers and existing SAP users. It offers a very competitive set of traditional ERP functionality.” Jim Shepherd AMR Research Companies are realizing the significance of ERP as an essential pillar in building the real-time enterprise. Real-time enterprises need extendible business functionality based on a solid but flexible IT infrastructure that allows them to quickly adapt business processes and add functionality without having to overhaul their underlying technology foundation. Derek Prior Gartner, Inc. Now is the Right Time for mySAP ERP We are sure SAP customers will benefit from the flexibility of SAP’s new ERP upgrade options and the extensibility of the technology platform SAP NetWeaver. German SAP User Group “ “ “


Expanding the Boundaries of Traditional ERP: Expanding the Boundaries of Traditional ERP Thank you for your Attention! Any further Questions?


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