Microsoft and SAP:Duet™ Software and the Power of Office Business Applications

Ian Tien, Senior Product Manager Office Business ApplicationsBas Kamphuis, Director Microsoft SAP ERP, Microsoft CorporationLas Vegas, October 23, 2007

The World of Enterprise Applications

Sara, CFO –“Excel Guru”

Benjamin,Marketing –“PowerPoint

Guru”

Julia,Systems –

“Word Guru”

Kevin, Account Mgr. –“Outlook Guru”

ITIT

FinanceFinance

OperationsOperations

Sales & MarketingSales & Marketing

Drive and enforce Drive and enforce business processesbusiness processesStructuredStructuredPredictablePredictableHighly enforceableHighly enforceable

Drive individual and Drive individual and group productivitygroup productivityUnstructuredUnstructuredUnUn--predictablepredictableDifficult to enforceDifficult to enforce

LOB AppsLOB Apps

The Results Gap

LOB AppsLOB Apps

A New Breed of Application

OfficeOfficeBusinessBusiness

ApplicationsApplications

1. Duet as Microsoft’s Premiere OBA2. Microsoft IT and Purpose Built OBAs

Agenda

Agreement between Bill Gates and Hasso Plattner

First R/3 Release on

Windows NT

Microsoft SQL Server Support

Microsoft Exchange integration with R/3

3.1

Microsoft selects SAP for its global

finance implementations

Availability of the SAP DCOM Connector

SAP And Microsoft Relationship

Microsoft and SAP partner for

mySAP.com and Windows 2000

launch

mySAP.comsolutions on Pocket PC

First Customer on 64-Bit Windows

Support for Windows 2003(32- & 64-bit)

Interoperability Agreement Announced

First Deliverables on

Agreement

Apr 03Apr 03Feb 02Feb 02Mar 00Mar 00Oct 99 / Feb 00Oct 99 / Feb 00 May 04May 04 Oct 04Oct 04-- NowNow

Apr 93Apr 93 Aug 95Aug 95 Oct 97Oct 97Jan 97Jan 97Apr 94Apr 94 Jul 95Jul 95

Get specs from Get specs from customercustomer

Validate specs Validate specs with Tech Saleswith Tech Sales

Estimate Estimate custom custom designdesign

Cost out the Cost out the solutionsolution

Decide Decide discount discount strategystrategy

Assemble Assemble proposed proposed responseresponse

Approve Approve proposed proposed responseresponse

Qualified?

RetireLead

Closed?Complete

SaleCreate Invoice

CRM ERP

CreateLead

CreateOppt’y

CreateQuote

The Reality of Work

Today: 1.X Releases

LeaveLeaveManagementManagement

Reports &Reports &AnalyticsAnalytics

Time Time ManagementManagement

OrganizationOrganizationManagementManagement

Sales Sales ManagementManagement

Travel Travel ManagementManagement

DemandDemandPlanningPlanning

Purchasing Purchasing ManagementManagement

RecruitmentRecruitmentManagementManagement

Budget Budget MonitoringMonitoring

Ian TienSenior Product ManagerOffice Business Applications

Duet for Microsoft Office and SAP

Duet for Microsoft and SAP Overview

Running onWindows 2003

Server

SAP Add-on Java

Microsoft .Net

SAP NW (Web AS)

Duet Server

DuetClient

Add-on

Backend

mySAP ERP 2004 or higher

SAPAdd-onABAP

ESAAdd-on

Exchange2003 or 2007

Client

Office 2003 or 2007

Updated Duet Roadmap

SAP Business Suite

Duet 1.5

SAP NetWeaver

Office 2003

Duet 1.0

Duet 1.0

Duet Value Pack

Duet 1.5

Duet 3.0

Scenarios

Scenarios

Next Gen.SharePoint

Office 2007 Next Gen.Microsoft Office

June 2006 March 2007 Q2 CY2008

Aligned with Next Generation

Office

Scenarios

Office Client

Duet Server

SAP SAP NetWeaverNetWeaverESAESA

SAP Business SAP Business SuiteSuite

Office ClientOffice Client

Office Server Office Server (SharePoint)(SharePoint)

SAP SAP NetWeaverNetWeaverESAESA

SAP Business SAP Business SuiteSuite

DDUUEETT

TTOOOOLLSS

MicrosoftBusiness

ProductivityPlatform

SAPBusiness EnterprisePlatform

Roadmap for Conceptual Architecture

Duet ServerDuet Server

Ian TienSenior Product ManagerOffice Business Applications

Duet Futures

Better decision making: Empowers employees Better decision making: Empowers employees with accurate data and guidedwith accurate data and guided--processesprocesses

Increase employee Increase employee business impactbusiness impact

Ensures SAP updated accurately and timelyEnsures SAP updated accurately and timelyMaintain control over Maintain control over key assetskey assets

Improved and more flexible SAP accessImproved and more flexible SAP accessMitigate existing Mitigate existing

business application business application frustrationsfrustrations

Greater Information Worker efficiency: Greater Information Worker efficiency: Enterprise system processes are leveraged by Enterprise system processes are leveraged by every employeeevery employee

Unlock more value Unlock more value from existing systems from existing systems

and informationand information

Duet Empowers Information Workers

Visitwww.duet.com

or

microsoft.com/duet

Learn more about Duet™

1. Duet as Microsoft’s Premiere OBA2. Microsoft IT and Purpose Built OBAs

Agenda

Guest Brand

SAP & Microsoft

ClientClientInteroperInteroper--

abilityability

ApplicationsApplications& Services& Services

ApplicationApplicationInfrastructureInfrastructure

Business Business AllianceAlliance

Microsoft ITMicrosoft IT

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 20031993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20072004 2005 2006 2007

•• SAPGUI on WindowsSAPGUI on Windows®®

•• SAP Desktop Office SAP Desktop Office InteropInterop

•• mySAP.commySAP.com Solutions on Pocket PC Solutions on Pocket PC •• Project MendocinoProject MendocinoShips as Duet Ships as Duet TMTM

•• mySAPmySAP CRM Mobile Client on Tablet PCCRM Mobile Client on Tablet PC

•• Integration with Exchange ServerIntegration with Exchange Server

•• DCOM ConnectorDCOM Connector•• RFC SDKRFC SDK

•• SAP R/3 on SQL ServerSAP R/3 on SQL Server™™•• SAP R/3 on Windows NTSAP R/3 on Windows NT

•• Microsoft BecomesMicrosoft BecomesSAP CustomerSAP Customer

•• SAP is WindowsSAP is Windows®® 20002000Launch PartnerLaunch Partner

•• mySAPmySAP SCM forSCM forXbox ManufacturingXbox Manufacturing

•• SAP Is SQL Server 2005SAP Is SQL Server 2005Launch PartnerLaunch Partner•• SAP 64SAP 64--Bit Bit

Windows (for Itanium)Windows (for Itanium)

•• SAP .NET ConnectorSAP .NET Connector

•• Portal Development Kit .NETPortal Development Kit .NET

•• Joint Commitment toJoint Commitment toAdvanced Web ServicesAdvanced Web Services

•• MendocinoMendocinoBusiness AllianceBusiness Alliance

•• Agreement Between Bill Gates Agreement Between Bill Gates and and HassoHasso PlattnerPlattner

•• SAP SAP NetWeaverNetWeaver andandMicrosoft .NET Microsoft .NET Announcement Announcement

Core CFGCore CFG

AP PO AP PO &FA&FA

Corp GLCorp GL& Canada& Canada

LrgLrg & Med Subs& Med Subs Small & New SubsidiariesSmall & New Subsidiaries

WWWWU.S. HRU.S. HR

PS (Facilities)PS (Facilities)Real EstateReal Estate TreasuryTreasury

U.S. BenefitsU.S. BenefitsU.S. PayrollU.S. Payroll

Talent MgmtTalent Mgmt

OEMOEMSoftwareSoftware

OEM H/W OEM H/W

Packaged Product, Retail Packaged Product, Retail Licensing and Services BillingLicensing and Services Billing

APOAPO(Xbox Desktops)(Xbox Desktops) APO APO

(Xbox Components)(Xbox Components)

GTSGTS

HCMHCM

SCMSCM

FIFI

Rea

ch

Agility/Richness

Increase Productivity with a Increase Productivity with a Familiar Environment (Duet, OBA)Familiar Environment (Duet, OBA)

Drive Business PerformanceDrive Business Performance(SAP and Microsoft BI)(SAP and Microsoft BI)

Making SAP Better

Optimizing the SAP Infrastructure Optimizing the SAP Infrastructure (Windows and SQL for SAP)(Windows and SQL for SAP)

Extending SAP Solutions Extending SAP Solutions (.NET Composite Applications)(.NET Composite Applications)

Microsoft SAP Live Deployments

R/3 - SAP EnterpriseFinance: Financial Accounting, (Enterprise) Controlling, Corporate Finance Mgmt., Treasury, Real Estate,Project Systems

Human Resources: Benefits, Payroll, Organizational Mgmt., Personnel Time and Administration

Supply Chain: Sales and Distribution, Material Management

v4.7

SCM - SAP Supply Chain ManagementSupply Network Planning and Demand Planning

GTS - SAP Global Trade ServicesLegal & Logistics ServicesDenied Party Screening

v7.0

BW - SAP Business Warehouse

FinanceAccounts PayablePolicy ComplianceVendor SpendOrg. SpendTreasury - ExchangeAsset Management

Supply ChainProduct ID Recon.Screening Reports

v3.5

FI CFMEC

TR

CO

PSRE

BN PY OM PT PA

SD MM

DP SNP

LLS

BWEM

v4.1

R/3 – SAP ERP E-Recruiting

v6.0

ER

SAP R/3 Statistics

n4.6 Tb in a single, central database nLive in 72 countries n3,000 GUI users; 75,000+ total usersn200-1200 concurrent usersn560,000+ dialog steps per business dayn14 million transactions per monthn130,000+ batch job executions per month n0.5 seconds user response time n99.98% Windows/SQL availability since mirroring in productionn64-bit in dev, test & production

.Net Extensions

WW SAP Community Summit 2007: Montreal

Finance•MSMarket – Intranet Procurement•MSInvoice – Internet Invoicing•MSExpense – Expense ReimbursementSupply Chain•MSInquire – Purchase & Payment Inquiry•MSOrder – Internet Order Status•BCWeb – Pricing (SharePoint-based)•Screen Mgr – Denied 3rt Party Screening

Human Resources• HRWeb – Personal Information• Benefits – Online benefit enrollment• Paystub – Electronic Paystub• DirectDeposit – Direct deposit• Headtrax – Organization self service• MS Review – Compensation Review• MS Eval – Performance Evaluation

The BCWeb story…

BC is short for “Business Case”. Microsoft Volume Licensing is striving to ensure …• Reduce revenue leakage by having a Business Case documented for each field promo• Obtain visibility of decisions – understand who required a discount and why• Understand promotion effectiveness and ensure the field is making informed decisions• Easily change empowerment guidelines by having a single data master of workflow routing and approvals• Enable field productivity – remove requirement –Field must have knowledge of IT systems to create a

promotion (i.e. different tool(s) for different promotion type in different programs)

Business Opportunity

Measure KPI Baseline FY08 Goals

Discount Controls % of promotion requests managed in BCWeb

.04% 14%

Application Simplification # of apps mastering promotion controls

3 2

Promotion Type Example IT Go-Live Schedule

On price list promos

Temporary local list price change available to all partners and communicated via the published pricelist. Offering defined at the Program & Product attributes level.Ex: 10% off the French version of Microsoft Office Professional on Open License in France for a period of 3 months, all partners

Complete!

Off price list promos

Similar to On-PL promos except not published on a pricelist. Offering defined at the SKU level. Allows for faster implementation, but requires more manual communications by the field

Complete!

Special Deals Specific end customer price negotiation for FPP and Open programs. Ex: 10% off the French version of Microsoft Office Professional on Open License to a specific customer

MQR ‘08

Product promos Promotional bundles of HED, Xbox & Commercial FPP Products sold at discounted pricing and available in limited quantities. Example: Xbox 360 + 2 games bundle

FY09 considered

Day in the life scenario

Create Promotion Request

Submit Business Case

Route and Approve Request

Execute Price Change

Scenario: Corina Neacsu, an LS in Romania supports the Sub sales goals by introducing additional incentives for SMB customers for the Windows Small Business Server 2003 product. Her goal is to create a promotion off of the published price list with the following parameters:• 5% price discount on any L or L&SA offerings• Effective for 3 months• Targeting 35% growth in the sales of SBS L Only and L&SA licenses (H1 FY08 vs. H1FY07)

The promotion goes beyond her own empowerment guidelines, so she will need approval from the BMO lead

Screenshot 1 Screenshot 2 Screenshot 3 Screenshot 4

Key Highlights: • Single point of entry of all promo types

• All parameters are configurable

• SKU selection is field friendly• Web Services integration

with SAP (get price points)

• Capture rationale / ROI information

• Structured and Unstructured data together

• SAP –SharePoint integration showcase

• Windows Workflow integration

• Configurable, rules-based empowerment and workflow

• Windows Workflow – SAP integration

• SAP condition is automatically created and applied for effective date

Bas Kamphuis, Director Enterprise Application Services

Purpose Build OBA

BCWeb

Ian TienSr. Product Manager Office Business Applicationsiantien@microsoft.com425-706-2497

Bas KamphuisDirector Microsoft SAP ERPbas.kamphuis@microsoft.com425-722-6732

© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.

The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this

presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.