Welcome to a New Dimension of Business Solutions an introduction Singgih Wandojo SAP Indonesia

Welcome to a New Dimensionof Business Solutions

an introduction

Singgih Wandojo

SAP Indonesia

Information Technology is NOT a Software Purchase

But a Business System Purchase

Building an Information Technology is NOT JUST to Automate the Business

Processes

Building an Information Technology is to ENABLE

the Business Strategy

Information Technology is a

BUSINESS DRIVER

SAP AG 2000 Executive Overview / 6

Active Real-time information ...

Shareholders

Local competition “made in” “made by” ...

Society

New competitors Mergers and acquisitions ...

Partner Less loyal Price transparency ...

Customer

EnterpriseEnterprise

Mobility Job enrichment ...

Employee

…A highly unpredictable place to do business

The New Business Environment


“SAP enables you to positively transform your company

so that the maximum potential for your business and your

people can be reached. We always strive for excellence to

become your long-term partner and to provide the tools

you need to improve your company’s value”.

What is SAP?


From Internal Efficiency to Creating Value

CreatingValue

Internal Efficiency

Integration & Automation

Cost reduction Reduce cycle times Reduce lead times

Resource Optimization &Customer Orientation

Customer Insight Value chain optimizer Value based management

Enterprise Resource Planning

Transactional processing Automating Business Process Traditional technology

Beyond ERP

+ Doing e-business + Web-based collaboration

SolutionRequirement


SAP Extended Integrated Business Solutions

Finance & Accounting

Human Resource Management

Logistics

SAP Customer Relationship Management

SAP Supply Chain Management

SAP Business Intelligence SAP Strategic Enterprise

Management

Customer RelationshipManagement

Data Management &Engineering Change Mgmt

Product Design &Engineering

Distribution

Strategic EnterpriseManagement

Strategic EnterpriseManagement

Business Intelligence &Data Warehousing

Business Intelligence &Data Warehousing

ManagerialAccounting

ManagerialAccounting

FinancialAccounting

FinancialAccounting

Sales

Raw Material & ResourceManagement

Process Manufacturing

Enterprise Management

CustomerService

CustomerService

Market Research& Analysis

Market Research& Analysis

Product / BrandMarketing

Product / BrandMarketing

MarketingProgram

Management

MarketingProgram

Management

SalesManagement

SalesManagement

Sales CycleManagement

Sales CycleManagement

Environment Health &Safety

Environment Health &Safety Plant MaintenancePlant Maintenance Quality ManagementQuality Management Product DevelopmentProduct Development

Master Data ManagementMaster Data Management Product Data ManagementProduct Data Management Customer/Material DataManagement

Customer/Material DataManagement

Master Data & DocumentChange Management

Master Data & DocumentChange Management

Demand PlaningDemand Planing Quotation & Sales OrderClarification

Quotation & Sales OrderClarification

Order Acknowledgement &Maintenance

Order Acknowledgement &Maintenance

ProcurementPlanning

ProcurementPlanning

Raw MaterialPurchasing

Raw MaterialPurchasing

Raw MaterialTransportation

Raw MaterialTransportation

InventoryManagement

InventoryManagement Quality InspectionQuality Inspection

Process Scheduling &Planning

Process Scheduling &Planning Production ExecutionProduction Execution Process ControlProcess Control Quality ControlQuality Control

Manufacturing /Conversion

Inventory ManagementInventory Management Production PlanningProduction Planning Production ExecutionProduction Execution Outside ProcessingOutside Processing

Logistics PlanningLogistics Planning ShippingShipping TransportationTransportation Storage & SiteManagement

Storage & SiteManagement

WarehouseManagement

WarehouseManagement

Business SupportHuman Resource

Management

Human ResourceManagement ProcurementProcurement TreasuryTreasury Fixed Asset ManagementFixed Asset Management

19


Why SAP? ... Industry focus

...

BusinessInformation

Ware-house

SalesForceAuto-

mation

B2BProcurement

AdvancedPlanner &Optimizer

R/3R/3

SAP Engineering & Construction

SAP Oil & Gas

SAP Utilities

SAP Health Care

SAP Automotive

SAP Media

SAP Aerospace & Defense

SAP Service Providers

SAP High Tech & Electronics

SAP Consumer Products

SAP Transport

SAP Public Sector

SAP Telecom

SAP Pharmaceuticals

SAP Retail

SAP Banking

SAP Chemicals

SAP Mills


From Integration to Collaboration

Enterprise ResourcePlanning

Inter-Enterprise Cooperation

e-Community Collaboration9

4

97 99

Employee Self Services

Business Intelligence

Supply Chain Management

Customer Relationship Management

Workplaces

Business Framework Technology, BAPIs

XML-enabling

Continuous Knowledge Transfer

Industry Solutions

Marketplaces

Portals

PartneringPlatform

Ou

tso

urc

ing

BusinessScenarios

e-Commerce

Internet ApplicationComponents


BUSINESSValue Creation Active knowledge

Users form new markets

Partnership Open environmentCollaboration One-step business

Business contextualintegration

INTERNETOutsourcing Implementation

outsourcingCommunity Building

relationships Technology Scalable

Internet architecture

PERSONALPortals

UserEmpowerment

User Roles

Structured accessfor business

Empowering the

individualSelf service

Role-based, Web access

mySAP.com principles


company boundary

How do I manage the complexity

Web browser access

Workplaceindustry-specific

role-basedpersonalizeddrag & relate

Workplaceindustry-specific

role-basedpersonalizeddrag & relate

Market-place

Market-place

single sign-

on

3.1H

R/3 4.6FIFI LOLO

HRHR

CRMCRMKMKM

B2BB2B

SEMSEM

APOAPO

BWBW

CFMCFMmySAP.com components

openInternet

standards

R/2R/2

non mySAP.com3rdparty3rd

party

legacylegacy

PartnerPartner

SAPSAP

inside

outsidemySAP.com Internet services

other Internet services

Cock-pits

Cock-pits

mySAP.com Workplace


mySAP.comWorkplace

mySAP.comWorkplace

Company/Organization

boundary

Information and services within company context

Information and services within company context

Information and services outside company context

Information and services outside company context

Business ScenariosBusiness Scenarios

mySAP.com Overview

SAP & non-SAPComponents

SAP & non-SAPComponents

mySAP.comMarketplacemySAP.comMarketplace

CommunitiesCommunities

Web ServicesWeb Services

SAP Workplace and Marketplace - Business Portal


The www.mySAP.com Marketplace

20 industry-specific and 4 horizontal communities

Chat/forum

High quality content for business professionals

News, etc.

Business directoryBusiness document

exchangeBuying and sellingGlobal catalog

Distributor reseller mgmtCollaborative forecastingRFP/RFQDynamic pricing

Community

CollaborationContent

Commerce

One-Step Business

Pilot installation of the Marketplace product


Align Resources & Initiatives

Testing Hypotheses, Adapting and Learning

Rationalize & Align the Organization Formulate

Communicate Navigate

Create Knowledge Networks

STRATEGY

Translate the Strategy

Execute

Reengineer Processes

Executive Teams Manage Strategic Themes

Strategic Feedback Encourages Learning

Align Goals & Incentives

Comprehensive Communication to Create Awareness

Extended Financials


Human ResourceManagement

Business Execution System

Source: The Balanced Scorecard Collaborative, Inc.

Needed : A new type of management processes

CustomerManagement


Research Has Identified Four Barriers to Strategic Implementation

Only 5% of the work force understands the strategy

60% of organization don’t link budgets to strategy

Only 25% of managers have incentives linked to strategy

85% of executive teams spend less than one hour per month

discussing strategy

9 of 10 9 of 10 companies fail companies fail

to execute to execute strategystrategy

The People BarrierThe People Barrier

The Vision BarrierThe Vision Barrier

The Management BarrierThe Management Barrier

The Resource BarrierThe Resource Barrier

Source: The Balanced Scorecard Collaborative, Inc.

How will companies do it ?


The Enterprise as an Information Model

Capacity resourcesCapacity resources

Capital resourcesCapital resources

long termlong term short termshort term

Material resourcesMaterial resources

Logistic processLogistic process

VendorVendor

ProductionProduction Sales Sales

Purchase ordersPurchase orders

ProcurementProcurement

materialsmaterials

servicesservices

ProcessesProcesses productsproducts

servicesservices

Sales ordersSales ordersWare-Ware-househouse

Ware-Ware-househouse

ClientClient

Raw Material Products


Employees

CollaborativePlanning &Forecasting

Invoicing /Payment

Enterprise Partners

Collaborative Applications

Logistics/Production

Human Resource

Sales &Marketing

Finance

Strategic Enterprise

Management

Knowledge Mgmt./

Research

Employee Self Service

OnlineService

Online Selling/Catalog

Billing /Payment

OrderFulfillment

OnlinePersonali-

zation

Supplier CustomerBuying /Procurement

The Total Eco-system


Information Model For Consumer Industry

F I N A N C E ManagementL O G I S T I C S Management

H U M A N R E S O U R C E Management

SAP Consumer Industry ComponentSAP Consumer Industry Component

Supply Chain Management (SCM)

Customer Relationship Management (CRM)

Business Information Warehouse (BIW)

Strategic Enterprise Management (SEM)


SAP Consumer Products, Edition 2000

Strategic EnterpriseStrategic EnterpriseManagementManagement

Business Intelligence Business Intelligence & Data Warehousing& Data Warehousing

Managerial Managerial AccountingAccounting

FinancialFinancialAccountingAccounting

Enterprise Management

Customer Relationship Management

Marketing & Innovation


Business Support

Sales Force Sales Force ManagementManagement

Sales Cycle Sales Cycle ManagementManagement

Customer Customer ServiceService

Key Account Key Account ManagementManagement

Trade Trade PromotionsPromotions

Category Category ManagementManagement

Market Research Market Research & Analysis& Analysis

Product Product ManagementManagement

Brand Brand ManagementManagement

Marketing Marketing Program Program

ManagementManagement

Advertising & Advertising & Consumer Consumer PromotionPromotion

Supply Chain Supply Chain PlanningPlanning

Demand Demand ForecastingForecasting ProcurementProcurement ManufacturingManufacturing DistributionDistribution

Human Resource Human Resource ManagementManagement ProcurementProcurement TreasuryTreasury Fixed Asset Fixed Asset

ManagementManagementKnowledge Knowledge

ManagementManagement


SAP Advance Planning and Optimization

Supply ChainPlanning

Supply ChainPlanning

Purchasing

Production

WarehouseManagement

Sales

TransportationManagement

ServiceManagement

Planning & Execution

Supplier Manufacturer Distribution Center CustomerRetail Outlet

Demand PlanningSupply Network Planning

Production Planning/Detailed Scheduling

DeploymentVMI Global ATP

Network Design


Retentionmanage-

ment

Customerdevelop-

ment

TieredServicing

mySAP.com CRM Business Scenarios

Relationship Intelligence

Common Reporting Tools

Shared Intelligent Agents

Common Data Model

InternetSales

FieldSales

FieldService

InternetCustomer

SelfService

ServiceInteraction

Center

BusinessPartner

Collabor-ation

Servicecenter

TelemarketingInternet

marketing

MarketingAnalysis

SalesMgmt. &Support

Product & BrandMgmt.

TeleSales


SAP Business Information Warehouse

Business Intelligenceand

Data Warehousing

Business Intelligenceand

Data Warehousing

R/3othersystems

Powerful Information Analysis- innovative, intuitive user interface- powerful OLAP analysis- for all types of users

Rich Business Content (financial, logistic, HR)- predefined meta data- R/3 extractors and interfaces- information models (InfoCubes) and Reports

End-to-end Data Warehousing Solution- R/3 and non-R/3 data extraction- fully automated- central control

Decision Support System for Middle Up Manager


Return on investmentDelivery timeDegree of fulfillmentCost varianceInput quantity varianceUsage variancePrice key figuresHeadcountRevenue per employeeEmployee turnoverPayables / receivablesDepreciationQuality key figures

Service levelScheduled delivery date varianceCustomer analysis key figuresPurchasing group analysisVendor evaluationCredit standingInventory turnoverRange of coverageInventory key figuresProductivity ratePersonnel timesAbsence quotaWage type distributionFee distributionAverage headcountAverage ageNet entry rateApplications per entry

Material consumption key figuresScrap rateLead time variancecapacity load utilizationScrap varianceLiquidity key figuresCash management positionEconomic ProfitBalance sheet key figuresLegal consolidation key figuresReturns quotaOrder key figuresRevenue variancePercentage return on sales...

Foundation for Benchmarking


More than 250 Key Performance Indicators




Integrating strategic, financial and operational information

StrategicEnterprise

Management

StrategicEnterprise

Management

SAP Strategic Enterprise Management

Analyzestakeholderexpectations

Analyzestakeholderexpectations

Communicateresults & manage

stakeholder relations

Communicateresults & manage

stakeholder relations

Strategic Enterprise Management Process

Simulate + decidebusiness strategySimulate + decidebusiness strategy

Define targetsfor BU`s /

investments

Define targetsfor BU`s /

investments

Manage performance

Manage performance

Focus: Develop strategies, which meet stakeholder demands, and manage its execution (translate it into action)

Dedicate resources (capital, employees), so that this process generates returns above cost of capital / above stakeholder expectations

Constantly monitor and manage performance and adapt strategy

Business Process ManagementBusiness Process Management

Business Process ManagementBusiness Process Management


SAP Management Cockpit

StrategicEnterprise

Management

StrategicEnterprise

Management

Performance monitoring, simulation of alternative business scenarios, resource reallocation and new target setting

should be possible within one management meeting in the Management Cockpit Room


SAP helps to extend your company’s competitive capabilities

The Benefits for Your Business

EfficiencyMeasure and improve profits

throughout your supply chain

ResponsivenessService customers better Agility

Act quickly on new marketing opportunities

ReliabilityEnsuring maximum

availability


Impact of ‘Production Execution Solution’ on Business Cycle …

Business Solutions Benefits

Better ROI

External Side

Flexibility of order amendment

Increased customer satisfaction

Improved CRM

Internal Work Cycle

Efficient raw material inventory utilization

Efficient finished goods management

Better Management of Supply Chain

Combination/Splitting of orders to suit plant runs

Improved Top Line

Reduced Cost of Good Sold

Reduced Plant Maintenance

Improved Gross Margins

Reduced Capital Expenditure

...We can relate ‘Solutions’ to improvement in ROI and/or Cash Flow

…and hit the right chord with our customers!

Reduction in Working Capital

Better Cashflow


Building an IT Infrastructure


P

urc

ha

sin

g

Sa

les

PP

S

Fin

an

ce

s

Co

ntr

oll

ing

Product X

Pu

rch

as

ing

S

ale

s

PP

S /

PS

Fin

an

ce

s &

As

se

ts

Co

ntr

oll

ing

Hu

ma

n R

es

ou

rce

s

Q

M /

PM

W

ork

flo

w

System Administration

DevelopmentWorkbench

Reporting/EIS

Reporting/EIS

Human Resources

Co

sts

System Administration

Workflow

n x installationn x release upgradem x interfacesn x trainingn x data transfery rollouts

n x installationn x release upgradem x interfacesn x trainingn x data transfery rollouts

1x installation1x release upgrade no interfaces1x training1x data transfer1x rollout

1x installation1x release upgrade no interfaces1x training1x data transfer1x rollout

Cost of Ownership

Reporting

EIS

PDM

Maintenance

Quality Management

Country Versions


Average TCO as a Proportion of Turnover

4.0%

0.0%

3.5%

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

Ave

rag

e T

CO

/ c

orp

ora

te t

urn

ove

r (p

erce

nta

ge)

ALL

Source: Study by the META Group, 4/99: ‘ERM Solutions and Their Value’


ERP Implementation Times in Months

25

22

23

26

25

20

12

6

7

4

12

3

38

44

56

70

48

48

Average Lowest Highest

Source: Study by the META Group, 4/99: ‘ERM Solutions and Their Value’

SAP AG 2000 Executive Overview / 35Source: Gartner Group, Dec. ‘98

IBS

WDS

JBA

JDE OneWorld

Baan

PeopleSoft

Oracle

SCT

Intentia

JDE World

Marcam ProteanRoss

SSA

Oracle ProcessMarcam Prism

CincomPlatinumImpresa MRO

IFSQAD

SAP

CHALLENGERS LEADERS

NICHE PLAYERS VISIONARIES

ABILITYTO

EXECUTE

COMPLETENESS OF VISION

Gartner 1998 ERP Magic Quadrant


ASEAN ERP Vendor Market Share

42.9%

6.9% 6.4% 5.5% 5.4% 4.9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

SAP BAAN PeopleSoft SSA JDEdwards

Oracle

Source : IDC ASEAN ERP Software Market 1998

* The revenue is based on software licence and maintenance* ERP is defined as providing solution for at least 3 of the components, Finance, Sales & Distribution, Production Planning, Human Resource, Sales Force Automation in this survey.


Status

Amoco Mitsui Indonesia Petrochemical live (5 months)

Astra International Automotive-(holding) live

Astra Daihatsu Motor Automotive live

Auto Serasi Raya Rental Car live (9 months)

Bank Bali Banking live (7 months)

BHP Steel Steel-Sheet live (5 months)

Delta DJakarta Beverage live (8 months)

Excelcomindo GSM-Service live (6 months)

Henkel Indonesia Chemical live

Indah Kiat Pulp & Paper Pulp and paper live

Krakatau Steel Steel Foundry, rod, bar live

Garuda Indonesia Airline live

Trypolita Chemical live

Siemens Indonesia Telecom live

United Tractor Heavy Equipment live

Partial List of SAP Customer in Indonesia


Star Motors Automotive live (5 months)

Van Melle Consumer live (6 months)

Telekomindo Telecom services live

Asia Pulp and Paper Pulp and paper live (4 months)

Aneka Gas Utility live

PIK Hospital Hospital live

PT Smart Corporation Agribusiness live

BSI, MGTI, Pramindo Telecom live

Conoco, Maxus,Arun Oil & Gas live

PERTAMINA Oil & Gas Implementing

Mayora Consumer live

Metrodata Electronics Implementing

Japfa Comfeed Poultry Implementing

Pelita Air Airline Implementing

Trakindo Heavy Equipment Implementing

Inti Keramika Building Material Implementing

Partial List of SAP Customer in Indonesia


British American TobaccoPhilip MorrisH.J. Heinz Coy of CanadaCadbury Carlsberg DanoneGuinnessHeineken Mars Van Houten Nestlé

AdidasReebok

Black & Decker BoseBraunJBL ProfessionalOsramPioneer ElectronicRolexSamsungSony

Beiersdorf Cheseborough-Ponds Colgate-Palmolive Helene Curtis Henkel Johnson & Johnson Lever Procter & Gamble

Consumer Electronics

Food & Beverages

Personal Care

630 installations

Apparel/Textile

150 installations

110 installations

130 installations

Total installations: About 1300

Americas 20%Asia/Pacific 11%Europe 69%280 other installations

SAP Consumer Product Customer


Selected Customers on Food Industry

Arrocera CovadongaAmecke-Mönninghof (D)Alfred Ritter (D)Astra-CalveAnheuser-Busch Companies (US)appetito AG (D)Bahlsen UK Limited (UK)Bitburger Brauerei (D)Borden, Inc.Boston Beer (US)British American Tabacco (D)Cadbury LTD (GB)Carlsberg A/S (DK)Cameo S.P.A. (I)Compass Group USACorporacion CressidaCPC International (USA)Cultor Food Science, Inc. (USA)Danone SA/NV (B)DeKalb Genetics Corporation

Dr Oetker, s.r.o. (SK)Earthgrains CompanyFlorida Crystals (USA)Guinness (UK)Hardenberg'sche Group (D)Heineken Italia S.P.A. (I)H.J. Heinz Company of Canada (C)Keebler Company (USA)Lacto Ibérica (ES)Lever AG (CH)Mövenpick (CH)Mott's North America (US)Nestlé (GB)Philip Morris Europe (CH)Quaker StateQ.U.F. Industries LTD (AU)Schweppes, S.A. (E)TSB (ZA)Unicer (PT)Unilever SA (Pty) Ltd (ZA)Van Houten GmbH & Co. KG (D)Wrigley GmbH (D)


Selected Customers on Non Food Industry

Adidas-Sarragan France (F)Bally AG (CH)Beiersdorf SA/NV (B)Black & Decker Corporation (USA)Bosch-Siemens Hausgeräte (D)Bose Corporation (US)Braun AG (D)Cheseborough-Ponds USA (US)Colgate-Palmolive (US)Edding AG (D)Elida Gibbs (I)Heissner GmbH (D)Helene Curtis Limited (C)Henkel (different subsidiaries)Hoffmann Group (CH)Fantom Technologies, Inc. (C)JBL Professional (US)

Johnson & Johnson (US)Lego Sverige AB (S)Lever EuropeOsram Sylvania Inc (US)Original Bradford Soap Works, Inc. (USA)Pacific Coast Feather Company (USA)Pioneer Electronic Corporation (J)Procter & Gamble Company (US)Reebok Russia (R)Rolex SA (CH)Samsung (South Korea)Sony Corporation of HK Ltd (HK)Villeroy & Boch AG (D)Wellmann Group(D)Vileda GmbH

SAP AG 2000 Executive Overview / 42* 21,500+ R/3 installations and 1,000+ R/2 installations (June ‘99)

SAP AG in 1998 revenues: 8.47 Bill. DEM (5.05 Bill. USD) Largest dedicated software applications company Market Leader in Enterprise Applications Software Licenses

(36% market share amongst TOPTEN; IDC, 1999)

10,000+ customers* in 100+ countries team with us to Extend their competitive capabilities Integrate their business processes Get a better return on information at a lower total cost of ownership

Focused on users in all enterprises regardless of size Increased customer satisfaction and stronger customer loyalty Heavy investment into SAP’s worldwide business community 20,400+ SAP employees (as per March 1999)

SAP - the company

Documents

Welcome to a New Dimension of Business Solutions an introduction Singgih Wandojo SAP Indonesia