Why move from SAP R/3 to mySAP ERP?

How to make the case and persuade a Customer to move to mySAP ERP at the earliest opportunity…

Issued by: Global Solution Marketing - ERP

Why move from SAP R/3 to mySAP ERP?

SAP Security Level:

Internal Use Only

SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 2

What is the document about?

This document is a sales-guideline and provides an overview on the key reasons why customers should move to mySAP ERP.

Therefore we focus on customer needs (installed base) and outline the benefits from a technical, business and maintenance point of view. These benefits are supported by the findings of a specially commissioned ‘mySAP ERP Customer Survey’ market research program delivered by Gerlach, Porst & Steiner in Nov 2004.

We identify the key reasons, why an SAP R/3 customer should do the transition to mySAP ERP, and also discuss how to deal with potential objections.

This guide is designed for SAP Sales Account Executives in SAP’s direct sales channels.

Slides are ‘SAP Internal Only’ or ‘CONFIDENTIAL’ and must not be used externally. Slides include Notes that may contain Company Confidential statements.

Introduction

What customers want … what mySAP ERP offers

Sell the transition story

Transition options & transition support

How to deal with objections?

FAQ: technical aspects


INTRODUCTION


1144 customers

414 installed-base customer conversions

730 net new customers

~85 % in mid market

589,6 million Euro achieved (286,8 million ytd)

44 live reference customers

constant growth on rapid path

mySAP ERP … TODAY*

* Source: 03.12.04


mySAP ERP: the challenge for 2005

€1.45bn mySAP ERP software revenue target

10% of SAP R/3 licensed installed-base customers to convert to mySAP ERP license (30% in EMEA Central)

mySAP ERP contracts in Mid-market between 50 - 75 % depending on region

150 reference customers

SAP Security Level: CONFIDENTIAL


Innovation

Invention

Standard-ization

Commodi-tization

COREactivities help differentiate in

markets to stimulate growth

CONTEXT activities support

all your operations need to be

efficient as possible

Processes that must run to enable you to satisfy your

customers

Processes that generate new,

additional value that attract and keep

customers

The business challenge of mature companies

mySAP ERPfor profitable growth

EfficiencyGrowth

How do you balance the necessity for efficiency, against the need for chaos to stimulate differentiation and growth?


Key differences between SAP R/3 and mySAP ERP

Client/Server Architecture

Web Application Server

Transactional user

Data-centric

Enterprise processes

Real-time data processing

Enterprise Services Architecture

Designed for SAP NetWeaver

Business user

Message-centric

End-to-end processes

Real-time business


Installed-base customers

Experience the same generic IT challenges: Provide Scalable systems

Implement homogeneous systems infrastructure

Centralize systems

Replace Legacy

Reduce downtime

Reduce TCO

Have pain points that are strongly related to their overall experience with SAP solutions so consideration needs to be given to: Release version

Transition path

License issues


WHAT CUSTOMERS WANT….WHAT mySAP ERP OFFERS…


Customer needs – a deep insight

We have a clear insight in what our customers want.

We know about our customer needs and their requirements and we know, what kind of problems our customers face every day…

from ongoing ‘Customer Surveys’

from day-to-day contact


Customer needs – mySAP ERP solution

Overview

mySAP ERP solves this through: Customer NeedsCustomer Needs

Strategic Business AdvantageBetter support for mgt. decisionsBetter support for mgt. decisions

SAP BI and SAP SEM enhancing transparency and control

Information in real time is one of the most important drivers for transition

Information in real time is one of the most important drivers for transition

SAP NetWeaver allows quick adaptation of processes based on open and flexible application platform

Flexibility and Adaptability Easy adaptation to changeEasy adaptation to change

Flexible IT infrastructure is also one important driver for transition

Flexible IT infrastructure is also one important driver for transition

People centric approachBetter usabilityBetter usability

ERP Self-Services & Role-based Portals empower people by providing easy access and intuitive design

Customers want their employees to have better access to all functions

Customers want their employees to have better access to all functions


Customer needs – mySAP ERP solution

Overview

mySAP ERP solves this through: Customer NeedsCustomer Needs

Enhanced capabilities are reducing operational costs

Improved Productivity Performance / Process Optimization

Performance / Process Optimization Customers need to constantly improve their operational excellence and reduce cost

Customers need to constantly improve their operational excellence and reduce cost

Enhanced capabilities allow efficient interaction with business partners and support end-to-end operations

Extension of processes Extension of processes

Integration of internal processes with customers and suppliers is getting more important

Integration of internal processes with customers and suppliers is getting more important

Integration of business processes

Reduced TCOs

SAP NetWeaver and content ready provided by mySAP ERP reduces development cost

More IT Efficiency at less cost

More IT Efficiency at less cost Cost issues are an important driver to move to mySAP ERP

Cost issues are an important driver to move to mySAP ERP


Customers want …

Better support for management decisions

The right information in real time is one of the most important drivers for transition for our installed-base customers.

Source: Customer Survey 2004, installed base (19 interviews)

37%37%Comprehensive analytics & reporting capabilities

Provide reliable Management reports

Clear overall view of business processes

Improved & faster decision making & control

Integrated operational control and execution

42%42%

20%20%

26%26%

5% 5%

Top of mind Statement: Introduction of new Solutions - BI 47 %47 %


Strategic Business Advantage

Better access to key internal/ external information across the business

Streamlined internal and external reporting

Real-time business information

Improved forecasting accuracy and timeliness

Shorter closing cycle times

Increased transparency and corporate trust

Improved decision support and control

Faster strategy execution

mySAP ERP provides …

SAP SEM

Analytics


Source: customer survey 2004, installed base (19 interviews)

Customers want …

Easy adaptation to change

The most important drivers for transition is a flexible IT infrastructure, that allow fast and cost-efficient adaptations to change and new requirements.

32%32%Extend and integrate new requirements

Reflect organizational changes

Be prepared for new opportunities

Increase efficiency to cope with rapid growth

Reflect changes in business model

37%37%

10% 10%

20%20%

5% 5%



Flexibility and Adaptability

Quick adaptation of processes based on an open and flexible application platform

Allows to consolidate and leverage existing assets

Increases implementation speed and continuous business innovation

Enables a new breed of applications

Reduces TCO

SAP NetWeaver

SAP Business Intelligence

SAP Enterprise Portal

SAP Exchange Infrastructure

SAP Master Data Mgmt

SAP Mobile Infrastr.

SAP Composite Applic.Framework

SAP Web Application Server


Customers want…

Better usability

Customers want their employees to have better access to all the functions and services they need for their work.

In fact, the top criteria to decide whether the IT system implementation is successful or not are:

1) cost savings

2) internal user satisfaction

37%37%Give easy access to complete solution capabilities

Provide employees with intuitive usability42%42%




People-centric approach

Easy access to information, applications and services

Intuitive design and navigation

Enables people to complete their jobs faster

Relevant budget, process and decision information always available

Information actively “pushed” out to user

Occasional users have easy access

Minimal training needed

Role-based Portals

Self-Services


Customers want

Extension of processes beyond the enterprise

Integration of internal processes with customers and suppliers processes is getting more and more important.

15%15%Collaborate with external partners


12% 12%Integrate with other lines of business


Integration of business processes

More efficient interaction with business partners

High level of third party integration in enterprise processes

mySAP ERP delivers…

FinancialSupply Chain Mgt.

e.g. Internet-Sales

mySAP ERP HELPS PÖTTINGER BUILD COMPETITIVEDIFFERENTIATORS

The online Web shop is perceived as a key competitive differentiator in Pöttinger’s partner program for dealers and repair shops: it allows users to identify spare parts numbers by drilling down to exploded drawings of Pöttinger machines, allowing users to “make things easier for themselves with Pöttinger.”


Customers want

Performance / process optimization

Performance Management still is the focus of business executives.


Increase efficiency to cope with rapid growth

Easy support of new business models

20%20%

15%15%

Top of mind Statement: General Cost Pressure / Consolidation 20 %20 %

Consolidate and leverage existing assets20%20%


e.g. Mobile Business

mySAP ERP offers …

Improved productivity

Reduction of operational costs thanks to business performance improvement:

e.g. faster and more cost effective procurement process

e.g. speeding up sales cycle with on the spot, just-in-time information

e.g. reduce sourcing and administration costs via E-Recruiting

e.g. self-service requisitioning


Customers want …

More IT efficiency at less cost

Cost issues are an important driver to move to mySAP ERP


15%15%Managing exploiting IT landscape cost

General cost pressure

Reduced total cost of ownership

Low integration and operational cost

20%20%

16%16%

21%21%

Top of mind Statement: Optimizing license cost 25 %25 %

Easy integration of other vendor’s applications 37%37%


mySAP ERP offers …

Reduced Total Cost of Ownership

60%

15%15%

40%

OPERATION

INNOVATION

TCO today

TCO 3 yearsfrom now

85%85%

SAP NetWeaver

SAP Enterprise Portal

SAP Master Data Mgmt

SAP Business Intelligence

SAP Exchange Infrastructure


SAP surpasses competitor offerings

Unsurpassed integration within and beyond the SAP functions

Functional scope and depth

SAP is the international standard

SAP is a safe choice

Best in class solution

Flexibility to adopt / to support growth

Installed-base customers appreciate SAP´s good reputation


62 %62 %

31 %31 %

25%25%

16%16%

25%25%

25%25%


SELL THE TRANSITION STORY


The new technology platform is important for the future systems strategy

Advancement in Technology

Bu

sin

ess

Req

uir

emen

ts

Integrated processes

Adaptable business

Replace

Leverage

CentralizedComputing

Client/ServerArchitecture

XX

Service-Oriented Architectures

Automation

Efficiency& Control

StrategicValue

SAP R/2 SAP R/3 mySAP ERP


Therefore it is important to move to ESA

What is ESA? And how does it work?

ESA or ‘Enterprise Services Architecture’ is an application architecture in which all functions, or services, are defined using a description language and have platform-independent interfaces

Service RegistryService Registry

Request a servicePublish a

service description

Service ProviderService Provider Service RequesterService Requester

Bind to the service


Enterprise Services Architecture - Core Benefits

Business Agility Easily change business processes

Increase implementation speed

Value Network Extension Outsourcing/leverage business partner services

Provide/sell services to business partners

Continuous Business Innovation Enable a new breed of applications (SAP xApps)

Allow various speeds for adoption of innovation

Leverage existing investments Leverage existing SAP and 3rd party and legacy systems

Drive lower TCO


SAP Web Application Server

Tech

nolo

gy

Applic

ati

on

SAP Basis

SAP R/3up to 4.6C

SAP R/3 Enterprise

mySAP ERP Edition 2003

Application

mySAP ERP Edition 2004

SAP R/3 Enterprise Core

SAP NetWeaver™ ‘04

Co

mp

osi

te A

pp

licat

ion

Fra

mew

ork

APPLICATION PLATFORM

Life C

ycle Mg

mt

SAP Enterprise Extension Set

Composite Applications

PEOPLE INTEGRATIONMulti Channel Access

Portal Collaboration

INFORMATION INTEGRATION

Master Data Mgmt

Bus. Intelligence Knowledge Mgmt

PROCESS INTEGRATIONIntegration Broker

BusinessProcess Mgmt

J2EE ABAP

DB and OS Abstraction

Self-Service Procurement

SAP R/3 Enterprise

SAP R/3 Enterprise Core

SAP Enterprise Extension Set

Strategic Enterprise Management

Internet Sales

Self Services

… and more

Additional Components

SAP ECC Core

SAP ECC Extension Set

Switch Framework


Self Services

Additional ComponentsSelf-Service Procurement

Internet Sales

SAP ERP Central Component 5.00

SAP NetWeaver™

Co

mp

osi

te A

pp

licat

ion

Fra

mew

ork

APPLICATION PLATFORM

Life C

ycle Mg

mt

PEOPLE INTEGRATIONMulti Channel Access


INFORMATION INTEGRATION

Master Data Mgmt

Bus. Intelligence Knowledge Mgmt

PROCESS INTEGRATIONIntegration Broker


J2EE ABAP


… and more

Explain the architecture of mySAP ERP


mySAP ERPAnalyticsFinancials

Human Capital ManagementOperations

Corporate Services

SAP NetWeaver™

Co

mp

os

ite

Ap

pli

cati

on

Fra

me

wo

rk

Life

Cy

cle M

gm

t

…

… and SAP NetWeaver – the new technology platform

PROCESS INTEGRATION

Integration Broker


INFORMATION INTEGRATIONBus. Intelligence

Master Data Mgmt

Knowledge Mgmt

PEOPLE INTEGRATIONMulti channel access


…Financial Supply Chain Management,Self-Service Procurement…

… Strategic Enterprise Management,Manager Self Services…

… Self-Services, Collaborative Folders and Collaborative Projects…

APPLICATION PLATFORMJ2EE


ABAP…Self-Services,Adobe Printing Forms…

Robust integrated platform Ease of use through portal Ease of collaboration Streamlined Data Management Powerful analytical platform Streamlined and adaptive integration

environment Scalability & Performance


Highlight the differences of SAP R/3 & mySAP ERP

The following slides highlight the new & enhanced capabilities …

Self-Services and Roles in mySAP ERP

AnalyticsStrategic Enterprise

ManagementFinancial Analytics Operations Analytics Workforce Analytics

Financials Financial Accounting Management AccountingFinancial Supply Chain

ManagementCorporate Governance

Human Capital Management

Employee Life-Cycle Management

Employee Transaction Management

HCM Service Delivery Workforce Deployment

Operations: Value Generation

ProcurementInventory & Warehouse

ManagementManufacturing Transportation

Sales Order Management

Customer Service

Operations: SupportLife-Cycle Data

ManagementProgram & Project

ManagementQuality Management

Enterprise Asset Management

Corporate Services Travel ManagementEnvironment, Health &

SafetyIncentive & Commission

ManagementReal Estate Management

SAP NetWeaver™ People Integration Information Integration Process Integration Application Platform

Extensive analytics, intuitively accessible

portal's)

Supports full procure-to-pay and order-to-

cash processes

Unique set of value-added services to greatly improve management of

resources and assets

Streamlines invoicing and

payment processes

Model, execute, and monitor processes across

technology and the organization

Mobile Infrastructure, portal connects people

Aggregate and analyze information across technology and the organization via SAP

Exchange Infrastructure

Open system architecture enables easier integration

Motivate employees to achieve, and design

innovative reward strategies

Self-serve portal increases flexibility and

productivity

Ensures adherence to new legal obligations

Empowers employees and improves HCM, reducing costs

Includes Internet Sales to boost revenues


Sell the New & Enhanced Capabilities of mySAP ERP 2004

Self Services Consistent Navigation and

User Interface Home Page concept Area Page concept Roadmap concept

Employee Self Services Time-Posting corrections

Manager Self Services Requisition Request Equipment Management Approval Processes Interactive Forms / Portal

Mgt. Capabilities for IT Staff

Benefits

Intuitive design & navigation allows people to complete their jobs faster

Occasional users have easy access

Minimal training needed

More guidance

Less complexity

Reduced cycle times

Enhanced control



Role Concept HR Executive Role Compensation Specialist Role Plant or Production Manager

Role Purchasing Agent Role Internal Sales Representative Business Unit Analyst Role

Benefits

Central point of access based on user role

Relevant budget, process and decision information always available

Information actively “pushed” out to user

Integrated knowledge management to find relevant structured and unstructured information quickly



Strategic Enterprise Mgt.

Balanced Scorecard Briefing Book

Legal & Mgt. Consolidation Integration of Statutory and Mgt.

Consolidation Consolidation of Investments Data Collection Capabilities Reporting Features

Benefits

Improved decision support and control

Shorter closing cycle times

Improved forecasting accuracy and timeliness

Enhanced efficiency in finance processes

Enhanced usability and user guidance



Financial & Mgt. Accounting

General Ledger Data Structure Standardization General Ledger Extensions Online Splits Real-time Integration Parallel Accounting

Fast Close Support Fast Close Support

Benefits

Simplifies Data Management

Enables more flexible consolidated reporting and analysis

Supports transparency and fast closes

Improved employee productivity and reduced cost



Financial Supply Chain Mgt.

Credit Management Electronic Bill Presentment &

Payment Dispute Management Collection Management In-House Cash Cash & Liquidity Management Treasury & Risk Management

Benefits

Efficient processing of payments and irregularities

Improved liquidity planning

Consistent company-wide credit policy

Proactive credit risk management



Corporate Governance

Management of Internal Controls Audit Information Support Support for Whistleblower

Complaints

Benefits

Greater scrutiny

Sarbanes-Oxley and Basel II compliance

Shareholder protection

Reduced risk of noncompliance

Reduced costs



Human Capital Management

Recruiting and Talent Mgt. Talent Relationship Mgt. Applicant Tracking Analytics

Performance Management Performance Appraisal Mgt. Employee development Attachment processing Appraisal calibration Template management

Enterprise Learning Integrated collaboration features Content integration / authoring Portal based access for people with

disabilities Correspondence Management

Benefits

Find suitable high quality candidates to fill positions quickly

Align recruitment activities to enterprise strategy

Reduce sourcing and administration costs

Enable employees to pick up new skills with a combination of classroom training and E-Learning



Operations Value Generation

Order Processing using RFID Documentary Batch

Benefits

Improved transparency by real time connection of the physical world (cases, pallets,..) to business applications

Simplified internal logistic processes

Allows traceability of material flow with minimal TCO



Operations Support

Trials in Recipe Management NPDI Process report Recipe creation Trial development Information access

Benefits

Enhanced usability by integrating product, formula and quality definition and execution into one environment

Speed up development process by user guidance and provided automation of development steps

Simplified handling and easier use

Efficient document retrieval



Operations Support

Lifecycle Data Management Simplified Document Mgt. Internal & Ext. Document

Access CAD Integration Product Modeling for

Configurable Products Collaboration with Partners &

Suppliers Guided Procedures

Benefits

Enhanced usability

Speed up development process

Intuitive handling

Optimized work-flow



Operations Support

Program and Project Management Mgt. of Collaborative Projects Resource-related Down

Payments and Billings

Quality Management Trial-specific Stability Studies Quality Assurance and Control Quality Improvement

Benefits

Real-time collaboration

Manage resources across organizational boundaries

Integrates quality-relevant information into the product development process

Improved usability and user acceptance

Better system performance



Operations Support

Enterprise Asset Management Mobile Asset Management Maintenance Cost Budgeting

Benefits

Provides all necessary information to carry out on-site service

Elimination of paper-based orders

Increased data entry accuracy

Automated and standardized budgeting processes

Improved efficiency



Corporate Services

Travel Management Employee Self-Services for

Travel and Expenses Mobile Travel Expenses

Environment, Health & Safety Data Import from External Content

Providers Management of Incentive

Compensation Plans

Benefits

Easy and direct access to a range of travel services for employees

Improved user acceptance

Reduced administrative costs

Increased visibility of accounting data

Flexibility and fast content creation



Corporate Services

Incentive & Commission Management Calculation of Variable

Compensation Compensation Results Analysis

Real Estate Management Space Management Rental Vacancy Management Rent Adjustments Service Charge Settlements Integration to Financials Reports and Invoicing

Benefits

Ensured consistency in incentive compensation plans

Reduced administrative burdens

Better insight & enhanced transparency

Enhanced analysis options


Customer value perception on mySAP ERP

LA(National player)

LKA(Multi-national

player)

GA(Global player)

SAP Strategic Enterprise ManagementSAP Business Warehouse

Additional User

SAP Self Services

SAP collaborative PLMSAP collaborative PLM

SAP Self-Services ProcurementSAP Self-Services Procurement

SAP Internet SalesSAP Internet Sales

SAP Enterprise PortalSAP Enterprise Portal

SAP Self ServicesSAP Self Services

Perceivedvalue

SAP Exchange InfrastructureSAP Exchange InfrastructureSAP Exchange Infrastructure

SAP Enterprise PortalSAP Enterprise PortalSAP Enterprise Portal

SAP Mobile InfrastructureSAP Mobile Infrastructure

SAP Master Data Mgt.SAP Master Data Mgt.SAP Master Data Mgt.

SAP Web Application ServerSAP Web Application ServerSAP Web Application Server

Significant demand

Strong demand


mySAP ERP 2004 Ramp-Up proves Next Generation ERP Success

Business Value

Technical Value

Low High

= Customer

High

Technical Upgrade Cherry Picker

Cherry Picker Next Generation ERP


TRANSITION OPTIONSTRANSITION SUPPORT


A clear maintenance strategy allows to plan ahead


Two directions for your sales argumentation

Implementation / Upgrade

License ConversionLicense Conversion

Demonstrating customers how they can benefit from - implementing new/enhanced business scenarios- consolidating their IT landscape and leveraging existing assets- deploying ECC 5.00 (i.e. physically upgrading).

Demonstrating customers why a

license conversion to mySAP ERP is the right strategic decision and how they will benefit if they convert NOW!

Demonstrating customers why a

license conversion to mySAP ERP is the right strategic decision and how they will benefit if they convert NOW!

CIO, IT-Manager, LoBs

CEO, CFO, CIO

Focus discussion pointFocus discussion pointTarget GroupTarget Group … talk about… talk about

• Benefits from conversion allowance • Package Pricing includes additional

scenarios• New and enhanced capabilities of

mySAP ERP 2004 / 2005 / Roadmap• Basis for technical implementation /

upgrade

• Benefits from conversion allowance • Package Pricing includes additional

scenarios• New and enhanced capabilities of

mySAP ERP 2004 / 2005 / Roadmap• Basis for technical implementation /

upgrade

• New and enhanced capabilities of mySAP ERP 2004

• Available Industry Solutions• Release 4.6c and later:

implementation • Release prior to 4.6c: implementation

and upgrade• Proof Points for additional value


Customers have different options based on release

SAP R/3Enterprise

SAP ERP 2004

SAP R/3Release 4.6BAnd below

SAP R/3Release 4.6C

Maintenance extension fee

Option IIStay until 2009


SAP/R3 Enterprise SAP ECC 5.00

Option III

Stay until 2006

Upgrade to

Stay until 2012


Stay until 2013


Upgrade to

SAP ECC 5.00

Upgrade to

SAP ECC 6.00

SAP ERP 2005

Option IStay until 2009Stay until 2006 Stay until 2010

Mainstream Maintenance

But we need to persuade them to move sooner rather than later.


How to convince customers to upgrade?

Recommended Option

• Convert to mySAP ERP / Business Suite

• Upgrade to SAP ECC 5.00

• Full Value of additional functionality provided in mySAP ERP

• Maintenance continues

Interim Option 2 • No conversion to mySAP ERP / Business Suite

• Stay till 2006 on current release (additional maintenance fee)

• Business buys time before final decision

• Maintenance continues but at higher cost


• Upgrade to SAP R/3 Enterprise

• Only Value of SAP R/3 Enterprise


There is a lot functionality that hasn’t been taking advantage of and normal maintenance is about to expire.

SAP R/3: Release 4.6B and below



SAP R/3: Release 4.6C

Recommended Option

• Convert to mySAP ERP / Business Suite (till latest 2006)




Interim Option 2 • Convert to mySAP ERP / Business Suite

• Stay till 2006 on current release

• Only benefit from conversion allowance


• Upgrade to SAP R/3 Enterprise



Interim Option 3 • Stay till 2009 on current release• (additional maintenance fee)



Organizations need to extend their integration efforts and integrate with their suppliers, partners and customers. mySAP ERP provides additional functionality to support this extended enterprise.



Recommended Option

• Convert to mySAP ERP / Business Suite (till latest 2009)








Interim Option 3 • Stay till 2012 on current release• (additional maintenance fee)



Interim Option 2 • Convert to mySAP ERP / Business Suite


• Only benefit from conversion allowance

If our customers make this move, we can focus our efforts on new functionality and provide better service. This creates a unique opportunity to take advantage of our transition support and participate in a “win/win”

SAP R/3: Release R/3 Enterprise



The value for our customers to upgrade depends on his situation and is probably the higher the older the current release is!

mySAP ERP

R/3 Enterprise

R/3

V ALUE


OTHER LoS

HOSTING

ImplementationImplementationDiscoveryDiscovery Operation & Continuous Improvements

Operation & Continuous Improvements

SAP Evaluation Hosting

SAP Application Management

SAP ImplementationHosting

SAP Ramp-UpHosting

SAP Upgrade Hosting

SAP Remote Application Operation

SAP Application Hosting

SAP Hosted E-Learning

SAP Development & Prototype Hosting

SAP Development & Prototype Hosting

Technical AM

Functional AM

PackagesPrimary Target Audience

ConsultantsProject Team and Support

StaffSuper Users & End Users Executives

SAP Key Solution my SAP ERP SAP NetWeavermySAP Business Suite (CRM,

SCM, PLM, SRM)Small and Medium Business

Services and Tools Education Consulting Assessment and Certification SAP Tutor Performance Tools

Content Type Functionality and Configuration Business Processes and Scenarios Vertical Industry Knowledge

Content Customization Standard Country-specific Customer-specific Learner-specific

Delivery Loaction SAP Training Center 3rd Party Training Center On-site Learner's Workplace

Delivery Timing By Learner By Customer By SAP

Delivery Channel Physical Classroom Virtual ClassroomSelf-paced Online /

OfflineCommunity

Learning Management Solution

KTE and MeasurementPerception of Learning

ProcessAmount of Actual Learning Performance Improvement Business Impact (TCO & ROI)

Duration of Relation Clustered Learning Continuous Learning

EDUCATION

To Empower Account Executives and Services Sales an Aligned Customer Driven Services Portfolio is Provided

AccountExecutives

Service Sales(e.g., CEMs)

Customer

Solution Support Services

Price ListOfferings

Solution Management Optimization

PerformanceApplication IntegrationSystem AdministrationData VolumesTestingEarly Watch Reporting

EmpoweringSAP Operations CompetenceAssessmentSAP Operations CompetenceEmpoweringEmpowering WorkshopsServices to support theimplementation of SAP Solution ManagerSAP Online KnowledgeProducts

SafeguardingSafeguarding for

ImplementationSAP Safeguarding for Solution

ImprovementSafeguarding for Upgrades

SAP Maintenance Contract (Standard Support)Administration and Automation; Access to Best Practices; Empower CCC; Proactive RemoteServices; SAP Software Upgrades; Monitoring for systems and core business processes; problem resolution; global 7x24 problem resolution; global 7x24 escalation procedures

CustomizedOfferings

All support services are powered by

SAP Solution Manager

Premium Support: SAP MaxAttention

AGS

IT services value chain

Service object

IT infrastructure design

Business process outsourcing

HW maintenance & support

(Custom) apps/ functionality development

Infrastructure integration

Training/educationArchitecture consulting/ solution design

Business process re-engineering

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Data center/infrastructure outsourcing

Application integration

ApplicationImplementation

Plan/design

Build/implement

Operate/ run

Tec

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Scenario/process design, value ass.

Technology architecture design

Process change management

Corp. business strategy consult.

Severe recent price

erosion

IT services value chain

Service object

IT infrastructure design

Business process outsourcing

HW maintenance & support

(Custom) apps/ functionality development

Infrastructure integration

Training/educationArchitecture consulting/ solution design

Business process re-engineering

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Data center/infrastructure outsourcing

Application integration

ApplicationImplementation

Plan/design

Build/implement

Operate/ run

Tec

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infr

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Ap

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Scenario/process design, value ass.

Technology architecture design

Process change management

Corp. business strategy consult.

Severe recent price

erosion

CONSULTING

Introduce ONE Comprehensive Customer Driven Services Portfolio

Services help you to convince and win your customer


Our Services help to convince your customers and answer their questions

Concern/question Answer

Why should I transition to mySAP ERP? What is the added value?

How does it all fit into my existing landscape?

How can I ensure my staff will use it? How much loss of time is involved?

How does SAP meet my (global) business requirements and strategy?

How can I minimize risks and costs during project execution

How can I ensure business continuity and minimize downtime?

Discovery Workshop (Quick) Check

Technical & Solution EvaluationTechnical Integration Check

ESA RoadmapGlobalization Workshop Technical & Solution Evaluation

End User trainingProject team training

GoingLive CheckSmart Start Hosting (Quick) Upgrade EvaluationTechnical Integration Check

Downtime Assessment Monitoring Design


The ERP Transition and Upgrade Service Map

Plan Build Run

Optimize*

*Optimization services are mainly identified within the run phase, but will often lead back into a new project plan and/or build phase

2Best application/ technology landscape

Unicode Conversion Service DMA/DAO

Technical Upgrade and ImplementationESA Roadmap

ESA Reference Architecture Client Migration Service

Globalization Workshop Component Migration Service

Education Services and Tools

Technical & Solution Evaluation

Project Preparation Service

Knowledge Transfer OptimizationDiscovery Workshop Application Solution & Management by Hosting Managed Services

(Quick) Upgrade Evaluation

(Quick) Check Scenario Implementation

Best business solution fit

1

Risk mitigation/ insurance GoingLive Check

GoingLive Functional Upgrade (GLFU) Check

Upgrade Coach

End User Training

Mgnd Ser. Suite: From Discovery and Implementation to Apps Ops/Smart Start Hosting

Downtime Assessment UWS

Test Optimization Service

Technical Integration Check Monitoring Design

Certification & Assessment

3 Project Team Training

SAP Modification Clearing

Component Allocation Workshop

Managed Services Suite: Application Operations and Continuous Improvement

There are 31

Support Services

offered by SAP!


SAP NetWeaver™ ‘04

Composite Applications

PEOPLE INTEGRATION

Multi Channel Access


SAP ECC Core

SAP ECC Extension Set

Switch Framework


Self Services

Additional ComponentsSelf-Service Procurement

Internet Sales

SAP ERP Central Component

… and more

Fixed-Price Hosting Service

SAP Hosting Services

Initial costsHardware costs

IT infrastructure costs

Internal staff costs for implementation,IT support and user training

Professional services for configuration

Ongoing costsOperating costs

Hardware and IT infrastructure maintenance

Technical Support

System administration labor costs

Fixed-Price Models

mySAP ERP 2004

Ongoingcosts

Ramp-Up

IH, AH, AM*

Packaged Solution

Initialcosts

* IH = Implementation Hosting AH = Application Hosting AM = Application Management

mySAP ERP – Fixed-Price Offering Eliminates Risk


mySAP ERP Hosting Services

Upgrade Hosting

Upgrade hosting is a black-box service for upgrading customers from SAP R/3 4.6C to mySAP ERP.

The upgrade service tem-porarily provides the IT infrastructure required for an upgrade.

SAP customers who think they will have fundamental problems upgrading their existing systems should be introduced to the upgrade service.

Implementation Hosting Customers do not have to

invest in hardware until all business scenarios in the hosted system landscape are performing at 100%.

Once the system has gone live, it can be handed over to the customer without problem

The service enables customers to plan the costs of implementing mySAP ERP and it is flexible enough to allow them to begin operating the system themselves at any time.


For further information please visit the following places

Extended Maintenance (http://service.sap.com/maintenancestrategy)

SAP Functional Upgrade Check (http://service.sap.com/safeguardingupgrade)

Upgrade Information Center (http://service.sap.com/upgrade)

SAP Safeguarding for Upgrades (http://service.sap.com/safeguardingupgrade)

SAP Consulting – Upgrade Focus Group (http://service.sap.com/ufg)


HOW TO DEAL WITH OBJECTIONS



Objection: why should we make changes?

We invested a lot of time and money in current ERP solution

The process was often painful

Our system is now running smoothly now ?How to answer?

Businesses evolve incrementally. Over time, the cumulative impact of changes on the capabilities of the ERP system can be negative.

Probably modifications to business processes may not have been implemented well in the IT infrastructure, or may not have been automated at all.

Maybe you have avoided altering the ERP system because it could not support changes or changes were too expensive.

Over time, even the best technology becomes functionally obsolete.

Software value declines over time. It is a depreciating asset.



Objection: why is flexibility important now?

To avoid problems with release changes we tried to remain as close as possible to the SAP standard

Now everybody is talking about flexibility - why? ?How to answer?

Remaining at standard meant to avoid - if possible - modifications which improved the costs for change to next release.

On the other side our customers want for its business exactly these modifications. Flexibility is getting more and more important.

The advantage of our Enterprise Service Architecture, ESA consists now of reducing the contradiction between flexibility and standard.



Objection: we were glad to have the solution for a while

Finally we were used to the system. We don´t want a new release every year…

Who actually called after a recent architecture change? ?How to answer?

Integration needs of customers rise continuously and business requirements are changing.

Architectural Renewal is a necessity in the world of Enterprise Software

The situation can be compared with driving the equivalent of an aging car.

There is no big change in handling - the ABAP server does not function differently than the SAP basis delivered with SAP R/3.

“People are tired of moving from release to release, being forced

to start again and again”(Mr. Munzo, ENAP,Chile)



Objection: we paid a lot of money for our SAP solution

Why should I invest again?

How will SAP help us to migrate to ESA? ?How to answer?

We want to protect the investments of our customers.

We make the architecture change in such a way that it runs off not like a migration, but like a normal release change.

We will proceed in several steps: in the context of our well-known release politics the customer receives not only economical advancements, but also the technical innovations of the integration platform SAP NetWeaver.

SAP recognizes the current value of past SAP R/3 software investments through favorable SAP pricing program available for a limited time.



Objection: NetWeaver makes us dependent on SAP

If we change to SAP NetWeaver, it certainly means a higher dependence on our Software-Supplier ?

How to answer?

In the opposite: we offer customer the possibility of developing extensions for the SAP surrounding field with Microsoft or IBM technology.

The integration of non-SAP solutions is a lot easier.

A customer, who uses our ERP system, mySAP CRM and SAP NetWeaver can also exchange it with the product from a competitor.



Objection: Implementation takes too much time

We don´t have the time to go through the whole implementation process! ?

How to answer?

Analysis of upgrade projects has shown that project duration is on average about 3 months in duration with a minimized downtime of 6 hours.

Our various Upgrading Services help to run the Upgrade smoothly.

“The business content provided with SAP BI allows a fast track implementation. A few weeks after installation on the test server

we had the first report in our hands. That was extremely motivating for the complete team.”

Peter Bartl, Project Manager for Introduction of SAP BI, Alois Pöttinger Maschinenfabrik GmbH



Objection: we wait till ESA is really being introduced

We don´t want to upgrade now and the to do the whole thing again in 2007! ?

How to answer?

It is important that you already today set the right course in the direction of Enterprise Services Architecture.

Since with Enterprise Services, existing and new processes can be depicted faster than was formerly the case, they provide the enterprise with room for innovations and growth, but you need to prepare your processes step-by-step.

SAP has defined a time-plan for the realization of the Enterprise Services Architecture. Until 2007, all solutions – including mySAP ERP – will be Enterprise-Services-capable.

Through mySAP ERP you already currently profit in many aspects from SAP NetWeaver.


?How to deal with objections?

Objection: why do I need mySAP ERP

Even if there are new and enhanced features – I don´t see the value for me!

How to answer?

Clients perceive mySAP ERP value potential most frequently in Analytics, Reporting, Business Planning & Consolidation, enhanced HCM capabilities (e-Learning, e-Recruiting, ..), Employee & Manager Self Services, as well as in Procurement.

Additionally, SAP NetWeaver as the integration platform for mySAP ERP delivers overwhelming value potentials through integrating processes, data and people, i.e. with SAP BW, SAP XI, SAP MDM and SAP EP.

SAP helps in identifying client specific value with the Quick Check and other services for mySAP ERP.


?How to deal with objections?

Objection: mySAP ERP is too expensive and complex!

I need to many changes on my current IT landscape

IT operation cost will increase

How to answer?

mySAP ERP is not complex! The flexible and integrated architecture of mySAP ERP powered by SAP NetWeaver enables best support and lowest costs.

mySAP ERP is not expensive! We are convinced that no competitor can deliver comparable capabilities for less.


FAQTECHNICAL ASPECTS


Frequently Asked Questions on technical aspects

Can SAP ECC and SAP BW be deployed on one WebAS in productive environments?

ERP and BI functionality can be deployed on a single Web Application Server in productive environments, provided that a proper sizing for all components has been made. Please also refer to the alias /PAM in SAP Service Marketplace for support information of a common database and operating system platform.

What Sizing guideline for SAP BW and mySAP ERP on one WebAS is recommended by SAP?

SAP recommends an additive sizing. For each component involved in the system stack a separate sizing is required using the respective sizing procedure. The total size of a server which can accommodate all components is the sum of the individual sizing results. This applies toSAPSMemoryDisk space



Is there a recommended hardware landscape for running mySAP ERP and SAP BW in one system, or are there any hardware landscape limitations?

There is a very broad spectrum of possible system landscapes, ranging from a single server to separate servers for different purposes. Sample recommendations for SAP NetWeaver can be found in the SAP NetWeaver’04 Master Guide.

Is there a recommended transition path for

Merging mySAP ERP and SAP BW systems

Separating mySAP ERP and SAP BW systems?

As of now, there is no recommended standard transition path. For the time being, such transitions need specific project support



Can SAP ECC and SAP BW run in the same client?

No. Currently SAP BW needs a separate client.

Can a single instance of mySAP ERP support multiple industries?

It depends on the number of countries, industries and languages supported, etc.

We support many of the largest global conglomerates.



Can multiple SAP ECC clients use the same SAP BW client?

Yes. Same as with a separate SAP BW system. There are SAP customers running such multi tenancy scenarios

How do we handle customer requests to run SAP ECC and SAP BW in one system?

We will handle such requests on a project basis.


Ten Good Reasons to Sell mySAP ERP

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mySAP ERP - prepares your customers for growth

mySAP ERP - is exactly what the customer needs

mySAP ERP - is the key to additional business

mySAP ERP - offers a unique solution from one supplier

mySAP ERP - wins new customers

mySAP ERP - leverages existing IT investments

mySAP ERP - the market leader with over 34 years experience

mySAP ERP - helps to decrease IT/maintenance costs

mySAP ERP - be better informed about your business

mySAP ERP - create an integrated business environment


Summary

Customer Pain PointsCustomer Pain Points Value PropositionValue Proposition Proof PointsProof Points

Better support for mgt. decisions

Better support for mgt. decisions

mySAP ERP delivers real-time business information (internal and external) across all business activities and is provides insight to all managers in the level of detail required, resulting in streamlined internal and external reporting and improved decision making.

mySAP ERP delivers real-time business information (internal and external) across all business activities and is provides insight to all managers in the level of detail required, resulting in streamlined internal and external reporting and improved decision making.

Customer Success Story China Telecom

Customer Success Story China Telecom

Easy adaption to changeEasy adaption to change SAP NetWeaver allows companies to flexibly and quickly deploy, execute, monitor, and refine business processes and strategies – including outsourcing of non strategic assets, centralization or decentralization, consolidation, and IT integration following mergers and acquisitions.

SAP NetWeaver allows companies to flexibly and quickly deploy, execute, monitor, and refine business processes and strategies – including outsourcing of non strategic assets, centralization or decentralization, consolidation, and IT integration following mergers and acquisitions.

Customer Success Story

dynaRENT

Customer Success Story

dynaRENT


Better usabilityBetter usability mySAP ERP enhances manager and employee 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.

mySAP ERP enhances manager and employee 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.

Summary


Customer Success Story Aventis

More than 10 million employees worldwide actively use the management tools and employee self-service functions in mySAP ERP.

Customer Success Story Aventis

More than 10 million employees worldwide actively use the management tools and employee self-service functions in mySAP ERP.

Extension of processes Extension of processes mySAP ERP provides unrivaled, comprehensive end-to-end logistics for complete business process cycles. Enhanced capabilities allow efficient interaction with business partners and support end-to-end operations.

mySAP ERP provides unrivaled, comprehensive end-to-end logistics for complete business process cycles. Enhanced capabilities allow efficient interaction with business partners and support end-to-end operations.

Customer Success Story Pöttinger



Performance / Process Optimization

Performance / Process Optimization

mySAP ERP helps customers to serve their markets and customers more efficiently and effectively and achieve operational excellence. Enhanced capabilities are reducing operational costs.

mySAP ERP helps customers to serve their markets and customers more efficiently and effectively and achieve operational excellence. Enhanced capabilities are reducing operational costs.

Summary






mySAP ERP helps customers consolidating their IT landscape and leveraging existing assets. SAP NetWeaver and content ready provided by mySAP ERP reduces development cost.

mySAP ERP helps customers consolidating their IT landscape and leveraging existing assets. SAP NetWeaver and content ready provided by mySAP ERP reduces development cost.

Customer Success Story Reynolds & Reynolds

Customer Success Story Reynolds & Reynolds


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Documents

Why move from SAP R/3 to mySAP ERP?