SAP Case Study

Systemanalyse und Programmentwicklung

Stephanie Enciso Eugene Krick III

Albert MoraDavid RugweJessica Sweet

1972◦ Former IBM engineers◦ Weinheim and Mannheim in Germany◦ Vision: to develop standard application software

for real-time data processing 1973

◦ First financial accounting system completed (R/1) 1979

◦ R/2 was developed to link external databases and communication systems

History

1988◦ IPO in Germany

1998◦ IPO in USA on NYSE

1992◦ R/3 released which was a client-server ERP

1999◦ mySAP.com allows employees, customers, suppliers,

and other business partners to work together from anywhere

2004◦ Netweaver’s first release

History cont.

1993◦ SAP begins work with Microsoft◦ 1996 - internet strategy with Microsoft introduced

1994-1996◦ Dell’s unsuccessful SAP implementation◦ Magic word used by Dell CIO about problem?

1997◦ Dell begins piecing together an ERP system

1996-2003◦ Nestle… Success?

6 years and $210 million

History Cont.

• 29 prices for vanilla from the same vendor

Monolithic

1999◦ SAP’s ERP implementation failure rate over 50%◦ SAP along with others failed to immediately see

the internet as an important tool 2001

◦ Acquired Top Tier Software◦ Dotcom bubble crash

Small companies fail Stability of SAP Invested in mySAP

ERP Market Downfall

CIOS WANTED BETTER ROI

COMPANIES REALIZED PIECED TOGETHER SYSTEMS HAD INTEGRATION ISSUES

SOA AND WEB SERVICES

SARBANES-OXLEY COMPLIANCE DROVE STORAGE AND DATABASE SOFTWARE PURCHASES

After Dotcom Crash

ERP FAILURE

NEW TECHNOLOGY:◦ Service Oriented Architecture

“Well-defined business functions as a service” Allows systems to be connected through web services

◦ Web services Standardized way of applications using

the XML, SOAP, WSDL and UDDI over an Internet protocol backbone.

SOA and Web Services

SAP BEGAN TO BROADEN ITS RANGE AND LOOK INTO NEW PRODUCTS◦ Customer Relationship Management (CRM)

Maximizing customer satisfaction, and strategic decision making

◦ Product Lifecycle Management (PLM) Supports product related processes

◦ Supplier Relationship Management(SRM) Anticipate and reduce procurement costs

◦ Supply Chain Management (SCM) Improving the way your company finds the raw components it

needs to make a product or service and deliver it to customers

Not just ERPs

MYSAP ALL-IN-ONE◦ Mid-sized businesses◦ Includes a package of applications :

ERP, CRM, SRM, BI, ect.

◦ Purpose: Drive business growth, Build and maintain operational

excellence, Optimize financial performance, and Connect partners within the headquarters.

SAP BUSINESS ONE◦ Small-sized businesses◦ Product contains applications such as:

Integrated financial management, CRM, BI, and Warehouse and Production management

SAP Products

PAYMENT METHOD◦ Allowed small and mid-sized businesses the

opportunity to use “world-class applications” HOSTED SERVICES

◦ customer outsourced their hardware but purchased licenses from software vendors

ON-DEMAND SERVICES◦ Outsource both hardware and software to a third

party, paying for the hardware and service on a need basis EX: used by mySAP All-in-One, Siebel, and SalesForce.com

inc.

Pay-As-You-Go Services

NetWeaver

NetWeaver COMPONENTS

◦ Application Server◦ Business Warehouse ◦ Master Data Management◦ Process Orchestration◦ Portal◦ SAP Auto-ID Infrastructure◦ Business Intelligence ◦ Exchange Infrastructure (XI)◦ Information Lifecycle Management

  TOOLS◦ Adaptive Computing◦ Controller ◦ Composition Environment ◦ Developer Studio ◦ Visual Composer ◦ SAP Solution Manager 

  APPLICATIONS

◦ Enterprise Search ◦ Single Sign-On 

 

In addition to SAP, which other well-established enterprise applications and

software makers were focusing on the same market segments?

Competitors

SAP’S ARCHRIVAL WORLD’S LARGEST DATABASE MAKER

STRATEGIC ACQUISITIONS INCLUDED:◦ Retek◦ PeopleSoft◦ JD Edwards◦ Siebel

PROJECT FUSION

Oracle

WORLD’S LARGEST SOFTWARE MAKER

FOCUS ON SMALL- AND MID-SIZED ENTERPRISES

MICROSOFT BUSINESS SOLUTIONS

ACQUISITIONS :◦ Great Plains Software◦ Navision◦ Groove Networks◦ Sybari Software◦ Frontbridge Technologies.

.NET TECHNOLOGY

Microsoft

DRIVERS OF “ON DEMAND BUSINESS”

IBM SOFTWARE GROUP

WEBSPHERE

ACQUISITIONS TO STRENGTHEN WEBSPHERE:◦ Gluecode Software◦ PureEdge Solutions◦ Ascential Software

IBM

Middleware Market 2010Table 1Worldwide Vendor Revenue Estimates for Total AIM Software, 2010(Millions of U.S. Dollars)

Vendor 2010 Shares 2010 (%) 2009 Shares 2009 (%)IBM 5,759.0 32.6 5,034.6 30.6Oracle (incl. BEA) 2,995.7 17.0 2,662.9 16.2Microsoft 875.4 5.0 768.7 4.7Software AG 601.0 3.4 472.0 2.9Tibco 502.0 2.8 417.9 2.5Others 6,913.7 39.2 7,087.00 43.1Total 17,646.85 100.0 16,443.08 100.0

Source: Gartner (April 2011)

Strategy and Focus SINGLE SET OF CROSS-MARKET

BUSINESS APPLICATIONS SUPPORTED BY THE NETWEAVER PLATFORM

◦ Only one code base to develop and manage◦ Every enhancement is available to all market

sectors

ADDRESS DEMANDS OF A CONSOLIDATED PLATFORM

◦ Produce and improve products that make them more directly applicable to key verticals

◦ Collaborate with an ecosystem of solution developers, partners, and customers in order to provide a “complete solution” to customers

SAP’s Ecosystem “Social Network” CONCEPT

◦ Facilitates customer interaction in a "safe" environment to connect, learn, share and in general expand and grow peer and professional networks

BENEFITS◦ Co-innovation◦ Value-management◦ Collaboration

LARGEST ECOSYSTEM IN THE INDUSTRY◦ 183,000 customers◦ More than 11,000 partners◦ Over 1,200 SAP solutions and over 600 partner solutions◦ 199 subsidiaries◦ In 2011, more than 1.3 million corporate and individual

members

The “Complete Solution”

Battle Between SAP and Oracle Acquisitions

TOMORROWNOW INC. (TN)◦ Third party software maintenance firm that supported

products from PeopleSoft ◦ Counter-move to Oracle’s recent acquisition of

PeopleSoft ◦ Would attempt to get customers to switch from

PeopleSoft to SAP applications “SAFE HARBOR MIGRATION PROGRAM”

VS. “OFF SAP”◦ Partly successful because of the confusion behind

numerous Oracle acquisitions◦ More than 200 companies migrated◦ TN/SAP guilty of copyright infringement by stealing

materials and support off of Oracle’s customer website

Business Intelligence (BI)Adopting New Technology BUSINESS OBJECTS INC.

◦ World’s leading BI software company ◦ Combined customer base and market share

placed SAP as the leader of BI since 2007

LEVERAGES IN-MEMORY TECHNOLOGY (SAP HANA) ◦ Processes all transactions in memory instead of

I/O to storage disks◦ Processes millions of lines of data in microseconds◦ Reduces hardware and maintenance costs

ERP Vendors (2009-2010)Market Share

◦ SAP 24% - Oracle 18% - Microsoft 11% - Other 47% (2010)

◦ 7% decrease from 2009◦ All three main vendors declined in ERP sector

SAP Oracle Microsoft Other0%5%

10%15%20%25%30%35%40%45%50%

20092010

Market Share % (2010)ERP – BI sectors

◦ SAP leader in ERP and BI in 2010◦ SAP 23% - Oracle 16% - IBM 12% - Microsoft 9% (2010)◦ Slight increase from 2009

SAP Oracle Microsoft IBM0%

5%

10%

15%

20%

25%

30%

ERPBI

SAP Revenue and Net Income 2006 – 2011 (in Billions)

◦ Very good year for SAP in 2011◦ Revenue up $6.7 Billion and net income up

$2.6 Billion since 2006

2006 2007 2008 2009 2010 20110

5

10

15

20

25

12.4

1516.1 15.3

16.7

19.06

2.47 2.8 2.6 2.56 2.43

5.093

Revenue Net Income

SAP ORCL MSFT IBM

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

RevenueNet IncomeMarket Cap

SAP – Oracle – Microsoft – IBM Growth Rate % (2010 to 2011)

◦ Very significant increase in growth rate percentage (net income) in 2011 compared to other top tier vendors

◦ Increase revenue by 14%, net income by 110%, market capitalization by 42%

SAP and BusinessByDesign MAIN SOFTWARE AS A SERVICE (SAAS)

SUITE◦ Supports

Business intelligence Analytics In-memory-technology

KEY FEATURES ALLOW THE FOLLOWING:◦ In-memory analytics and bi-directional Microsoft

Excel integration◦ Mobile device support◦ A user interface that incorporates Microsoft’s

Silverlight technology on the desktop. Silverlight also makes a tighter connection to Office

◦ Single and multi-tenancy support

SAP in the world of Mobile Business

COMPETITIVE ADVANTAGE AS FIRST MOVER

BUSINESS SAYING:◦ Go mobile to make your business run faster or

smoother

SAP MOBILE MIDDLEWARE TECHNOLOGY OFFERS TWO OPTIONS ◦ Netweaver mobile 7.1 (earlier version)◦ Sybase Unwired platform

Netweaver Mobile 7.1

Used by IT Organizations to extend applications, data and process to mobile

workers not connected to company network

INCLUDES:◦ Over the air device management◦ Application design tools◦ Synchronization middleware which allows mobile

devices to interoperate as part of company business process

Sybase Business Strategy

Sybase Unwired PlatformSybase Unwired can be categorized as a mobile enterprise application platform provided by SYBASE that extends the backend systems to the front end mobile devices.

HARD DEVICES◦ Motorola MC75

Complex applications Supported by windows operating system High amount of data flowing in and out of device Used by field technicians and customer service reps Uses Netweaver mobile

LIGHT DEVICES◦ Blackberry, iPhone

Run on thin clients One to two screens and minimum amount of data flows

around Designed to use Sybase unwired Platform

Sybase Unwired Platform cont.

BUSINESS LOGIC OF THE APPLICATION◦ Business Application Programming Interface (BAPI) brings

data from the backend applications to the Netweaver middleware.

◦ Data is then flown into the mobile device by the help of the distribution logic feature of the Netweaver 7.1

Sybase Unwired Platform cont.

The End

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