Turning Data into Information and Information into Business Insights.

Actuate e.Services Certified Business Solutions

for SAP and PeopleSoft.

Introduction Value Statement Actuate e.Services, with proven expertise in delivering world class Information Delivery and Technology solutions has the ability to design applications that transform operational ERP data into business insights that can be delivered real time, is highly adaptive, scalable and secure. Value Proposition

Offer BI Solutions that connect to both structured and unstructured ERP data (without having to rely on building a data warehouse solution first).

Provide a single and unified interface to access data from multiple ERP transaction sources.

Apply Actuate e.Services best practice and implementation methodology to maximize ROI (Return On Investment).

Provide ‘Just In Time (JIT)’ metrics via ‘Executive Dash Boards’ to measure business performance and enable quick decision-making.

Document Purpose The purpose of this document is to develop a blueprint for Actuate e.Services Enterprise Systems business and practice development initiative. This document provides a high level overview of:

ERP market distribution and business potential. SAP and PeopleSoft product architecture. Technical architecture of SAP and PeopleSoft. GAP analysis of existing BI solutions available within SAP and PeopleSoft. Actuate Value Proposition to provide enhanced BI solutions.

Business Development Opportunities SAP’s share in the enterprise software market

Of all global companies (defined as companies with revenues over $1 billion), 36 percent use SAP.

Of all midsize companies (with revenues from $200 million to $1 billion), 18 percent use SAP.

Of all growth market companies (with revenues from $50 million to $200 million), 11 percent use SAP.

Of the over 15,000 SAP implementations, 3000 are not yet complete. Distribution of industries currently using SAP software worldwide, by type of industry (copyright SAP AG) Of the organizations in all market categories, some 69 percent have already deployed or have plans to deploy an Enterprise Resource Planning (ERP) software suite. SAP sells over 200 software licenses per month other ERP software suppliers do not sell half this many licenses in a year. Some of the over 7000 companies that use SAP include:

Microsoft Ciba Geigy Samsung

IBM Colgate Palmolive Texas Instruments

General Motors Motorola

0 10 20 30 40

SAP

ORACLE

PeopleSoft

System Software

BAAN

Typical Cost Distribution of ASAP projects SAP provides tools to facilitate implementation to its clients and consulting partners. Accelerated SAP-ASAP-is one such tool available to assist with SAP implementations. ASAP tools provide detailed guidelines to assist and define many aspects of the implementation.

Services10%

Electronics14%

Chemical18%

Other11%

Paper3%

Unv.4%

Metal4%

Traffic4%

Trade4%

Mining & Trans.5%

Office & EDP7%

Food & Tab7%

Steel & Auto9%

In-House Resources

21%

Hardware Costs17%

Software License

Fees20%

Consulting Fees36%

Training Fees6%

SAP SAP stands for Systems, Applications and Products in Data Processing. The acronym is used to refer both to a software product and the company that makes the software. SAP is an enterprise software system. The software is designed to manage all business processes that occur in a corporation. SAP can simultaneously manage the process in sales and marketing department, human resources, accounting, manufacturing and the rest. The quality that sets Sap apart from the other enterprise software systems is that it manages the broadest spectrum of business areas, and it is the most integrated system because (ideally) all process areas use the same programming language and access the same databases, making business transaction results instantaneous. SAP continues to add new business practices and modify and update the old ones. Figure below shows how the SAP modules are currently divided to handle all aspects of business and also shows how a company might begin matching up its business processes to the best practices available in the R/3 system. Typical business associations to SAP R/3 model

R/3

Client Server

ABAP/4

QM

Quality

Mgmt.

PM

Plant

Mgmt.

HR

Human

Resources

PP

Production

Planning

MM

Materials

Mgmt.

SD

Sales and

Dist.

FI

Financial

Accounting

CO

Controlling

AM

Fixed

Asset

Mgmt

IS

Industry

Solutions

WF

WorkFlow

PS

Project

System

Existing Information Delivery Capabilities within the SAP system Information details Screen based drill down on many items. If one needs access to detailed information, they can keep double clicking on items until they find what they are looking for. Centralized Data SAP provides corporations with a centralized control point, minimizing the duplication of records and creating consistency in record input. Critical information can be maintained with no concurrency conflict. The centralized control process ensures high data integrity. Real-Time Information Instantaneous notifications of transactions facilitate real time response and better decision-making. Updates are immediate and available for instant verification. Document History and Tracking SAP creates a document for every transaction that occurs. Every transaction is recorded as an activity enabling companies to maintain audit trails. Search Options SAP provides a list of search option for required data.

Current Limitations of the Reporting Systems within SAP and Actuate Solutions to provide enhanced Information delivery solutions for SAP Distributed Reporting Systems in SAP Though SAP provides a centralized data source for Reporting, each module such as MM or FI has its own reporting system leading to difficulties in:

Providing Organizational level reporting solutions.

Providing a Single Portal for all reporting requirements.

Customization and management of reporting solutions.

R/3

Client Server

ABAP/4

QM

Quality

Mgmt.

PM

Plant

Mgmt.

HR

Human

Resources

PP

Production

Planning

MM

Materials

Mgmt.

SD

Sales and

Dist.

FI

Financial

Accounting

CO

Controlling

AM

Fixed

Asset

Mgmt

IS

Industry

Solutions

WF

WorkFlow

PS

Project

System

PP Reports MM Reports SD Reports

IS Reports WF Reports PS Reports

Actuate Information Delivery Solutions have the ability to provide a consolidated reporting solution for all modules of SAP, making it easier for executives to generate high level summarized information for any function within the organization in a secure and scalable format.

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R/3

Client Server

ABAP/4

QM

Quality

Mgmt.

PM

Plant

Mgmt.

HR

Human

Resources

PP

Production

Planning

MM

Materials

Mgmt.

SD

Sales and

Dist.

FI

Financial

Accounting

CO

Controlling

AM

Fixed

Asset

Mgmt

IS

Industry

Solutions

WF

WorkFlow

PS

Project

System

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SWOTs (Strengths, Weaknesses, Opportunities and Threats) Actuate Strengths:

Reduction in training costs by providing a single reporting interface to the entire organization.

Central reporting repository for all modules of SAP.

Centralized administration and storage of Reports.

Single source for Security Administration.

Transform existing SAP reporting infrastructure into a complete Internet eBusiness framework.

Report through corporate intranets, Web-based e.Business applications, and Microsoft(r) Excel front-office solutions.

Provide Web based access to business objects, multiple data sources, and the wealth of business processes in SAP R/3.

Deliver a complete SAP R/3 end-to-end reporting system.

Provide end-to-end business-to-business procurement reports.

Actuate Weaknesses: No reference implementation. Need to compete with SAP BW and other SAP BI vendors.

PeopleSoft PeopleSoft is recognized as one of the leading contenders in the ERP arena. Each packaged application produced by the ERP vendor must have functionality to accommodate a wide range of companies with varying business requirements. Some requirements may be dictated by the particular laws of a given state or even country. With the expansion of companies into the Global marketplace, the challenge to provide complete ERP solutions is greater than ever. PeopleSoft has responded to these challenges and has produced an impressive set of functional applications in areas such as Finance, Human Resource Management, Manufacturing, and Student Administration. PeopleSoft Latest BI offering competing with Actuate: PeopleSoft Enterprise performance Management System

The PeopleSoft Enterprise Performance Management (EPM) suite of business analytic applications is specifically designed to measure, manage, and maximize a company’s performance across multiple dimensions, including suppliers, customers, and the workforce. EPM can also help a company monitor changing business conditions by tracking early indicators. These tools also facilitate the modeling of multiple scenarios that can evaluate the impact of both financial and organizational change. PeopleSoft’s EPM suite includes Financial Analytics, Workforce Analytics, Customer Relationship Management Analytics, and Supply Chain Analytics, all supported by data integration from the Enterprise Warehouse.

Business Development Objectives Develop Actuate e.Services solutions/offerings for SAP R/3 and SAP Business Warehouse According to Gartner’s 2002 BI Market study many customers who have now successfully implemented their ERP systems are treating their data as an enterprise wide asset and are looking for BI solutions that “tease out business opportunities and cost savings”. Most customers that have installed SAP R/3 as their ERP system often choose SAP’s Business Information Warehouse (BW) as their business intelligence platform. Actuate provides access to the source SAP R/3 data as well as connectivity to BW InfoCubes and other data sources that might exist in the organization.

R/3

Business WareHouse

SAP Enterprise Data Store

BW InfoCubes

Actuate Information Delivery Solutions

Other Enterprise

Data

Actuate e.Services Offerings 1.Actuate e.Services ‘BI Development Strategy Sessions’ for Enterprise Systems By leveraging tried and tested best practices and with years of accumulated knowledge in developing BI solutions for other industry applications, Actuate e.services can guide companies though the associated complexities of developing an enterprise wide Information Delivery solution for SAP implementations. 2.Actuate e.Services assistance in Development and Implementation of BI solutions for Enterprise Systems Typical e.Services project execution plan for developing SAP/BW Information delivery solution Define and Assess Information Delivery Requirements

1. Jointly define Information Delivery Blueprint 2. Define Solution Strategy 3. Develop Solution 4. Solution Rollout 5. Service & Support

Information delivery Pilot implementation For the Pilot focus on extracting Business Content from a specific analysis area such as Sales Analysis, Accounts Receivables, Procurement etc.

1. Configure standard InfoCube 2. Create Set of Standard Actuate Reports 3. Organizational buy-in is obtained. * No major customization and integration effort is undertaken in this phase

Information Delivery Infrastructure Set-up

1. Setup of Hardware and Software 2. Actuate Cluster Set-up and configuration 3. Configure R3 connectivity 4. Test Data Access and Flow

Project Implementation and rollout Actuate e.Services methodology complements the ASAP methodology to ensure a robust Information delivery solution is implemented, tested and deployed. Project milestones include

1. Blueprinting 2. Realization 3. Roll Out 4. Post-Implementation Support 5. Organizational Change Management

3. Packaged Offerings

1. Information Delivery Requirements Analysis 2. Deployment Strategy Sessions for SAP and PeopleSoft 3. Security Integration and Configuration Management 4. Base Report designs/templates for different SAP and PeopleSoft

modules

R&D, Training and Infrastructure requirements Training: PeopleSoft Formal PeopleSoft training is not a requirement at this stage, since e.services has over the years accumulated actual project experience in complex PeopleSoft-Actuate implementations. SAP SAP has training course offerings for different levels:

Level One and Two for basic Introduction and Orientation. Level Three for Installation and Configuration Optional: Currently SAP has 14 modules (areas of functionality) and offers

training in each module. It is not necessary for an Actuate e.Services consultant to undergo formal training in any of these modules as long as they have received training in Level One and Two.

Requirements: Senior Technical Architects and Project Managers to attend Level One and

Two training. Senior and Staff Consultants to attend Level Two training.

Current Status: Level One Training will be completed shortly Level Two and Three training to be scheduled. Train the Trainer: Not all consultants need to attend formal in-class training. Once a Senior consultant has attended a paid formal training course, the same consultant will tailor the training course to focus on BI requirements and train other e.services consultants in the organization. Team Training Costs for SAP (excluding travel and expenses):

# Consultants Avg. Course Rate

Average # of Classes

Total

6 $5,000.00 1.5 $45,000.00

R&D, Hardware & Software Software: Access to the latest version of core SAP and PeopleSoft Software will be a

must along with, o One major functional module of both these ERP systems (e.g. Sales or

Accounting) Licensed copies of all associated software to successfully configure SAP and

PeopleSoft. (e.g. Oracle or DB2) Approximate Limited User/Functionality Software License cost: $20K-$40K

Hardware: SAP System Architecture: Every SAP R/3 system consists of one database server and one or more application server. In a typical SAP R/3 scenario, each user connects to an application server by starting the Sapgui program on his or her local machine.

Each system can consist of several application servers communicating with the others, running on UNIX, AS/400, or Windows NT platforms. One centralized database is used in an R/3 system to store application data and programs, building the database layer. The three layers can be located on one or several servers. Though users can install all layers on one system, usually this is used for demonstration purposes. Typical Hardware Requirements for a SAP R/3 configuration:

SAP R/3 database server and central instance: Hardware: Compaq ProLiant 7000

2 processors XEON 400 MHz, 512 KB cache 640 MB RAM ES 3100 Smart Array RAID Controller

Software: Windows NT 4.0, Service Pack 4 SAP R/3 System Release 4.0B with IDES Oracle Version 8.05

SAP R/3 application server: Hardware: Compaq ProLiant 6500

4 processors XEON 400 MHz, 2 MB cache 2.6 GB RAM ES 3200 Smart Array RAID Controller

Software: Windows NT 4.0, Service Pack 4 SAP R/3 System Release 4.0B

PeopleSoft System Architecture

Demonstration Equipment Configuration: Two high end laptops (e.g. Toshiba Tecra 9100 and above) will be required to install SAP and PeopleSoft with associated Actuate components to facilitate presentations and demos of sample BI solutions to prospective clients. Equipment cost:

# Laptops Avg. Cost per Laptop Total

2 $5,000.00 $10,000.00

R&D, training and Education Hardware Requirements: Since most of the core Enterprise Systems e.Services practice team will be based in NJ, a SAP and PeopleSoft server machine needs to be configured for testing and development of Actuate e.Services Custom Solutions. Equipment Cost:

# Servers Avg. Cost per Server Total

2 $8,000.00 $16,000.00

Financial Projections Sales Forecast

Account Projected Total

e.services revenue

Q1 Q2 Q3 Q4 Upside

Deutsche Bank 250 75 150 25 250

MetLife 250 50 100 50 50 150

J&J 150 50 50 50 100

AXA Corporation 150 50 50 50 100

Mass Mutual 150 25 100 25 200

Tele-Sales 100 50 25 25 70

C – deals (ERP) 500 150 150 200 250

Total 1550 150 650 375 375 1120

Cost of Sales

Q1 Q2 Q3 Q4

Training 20 20 5

Travel & Expenses 10 15 15 15

Capital Expenditure 75 15 5 5

Total 105 50 25 20

Income Statement

Q1 Q2 Q3 Q4

Sales (including upside) 430 930 655 655

Cost of Sales 105 50 25 20

Gross Margin 325 880 630 635

Sales and Business Development Strategies Available channels within the organization

Actuate e.Services

Business

Development

Direct Sales

(Field Sales

Representatives)

Existing

e.Services

customers

Consulting

Partners

e.Services

Action Items SAP

Develop Technical White Paper on Actuate-SAP Information Delivery Solution.

Develop Actuate-SAP demonstration application, focusing on bridging existing gaps

Develop strategy to integrate Actuate e.Services methodology and best practices with Accelerated-SAP (ASAP)

PeopleSoft

Develop technical white paper comparing e.SpreadSheet with NVision (current Excel based reporting solution within PeoplSoft)

Enhance existing demonstration application to show: o PeopleSoft process scheduler integration o e.SpreadSheets going against PeopleSoft data o Integration with Component Interface o Enhance existing Reports (look and additional modules)

Develop ‘SQR-Actuate’ Converter offering (similar to the ‘Crystal-Actuate Converter)

Business Development

Assist in development of Actuate e.Services-Enterprise Systems Integration slide presentation

Participate in On-line Web Seminars focusing on BI for ERP systems Identify existing and new SAP and PeopleSoft opportunities amongst

System Integrators and provide technical assistance to the BD team on SAP/PeopleSoft sales calls.

BD to identify new SAP customers that have not yet invested in SAP BW or are still looking for a BI vendor.

Develop white paper comparing ‘Total Cost of Ownership’ of native PeopleSoft reporting solutions vs. Actuate.

Field Sales e.Services Enterprise Systems Group to identify Top 5 and Top 10 accounts within NAO that have recognized ERP sales opportunities. Top 5 Accounts: Eastern region 1.Metlife: PeopleSoft 2.Johnson & Johnson: SAP 3.Deutsche Bank: PeopleSoft 4.FleetBank: PeopleSoft Central region 1.GE: SAP, PeopleSoft Western Region TBD Action Plan: e.Services to participate in all sales calls (from early stages) related to SAP or PeopleSoft. Conduct regional technology seminars with focus on BI for Enterprise Systems. Conduct onsite complimentary ‘Lunch and Learn’ Sessions. Promote discounted ‘Packaged Offerings’ that include Software and Services for SAP and PeopleSoft implementations

Key Strategies and Action program

Months 1 2 3 4 5 6 7 8 9 10 11 12

Sales Promotion Activities

Finalize Business Development Plan

Develop Actuate ERP presentation

Develop webinar presentation

Schedule initial round of webinars

e.Service Training

Complete Level 1 SAP training

Develop and Schedule e.Services training Program for PeopleSoft

Complete Level 2 SAP training

Customize and schedule e.Services Level 1 training for SAP

Technical Support Tools

Actuate-SAP Tech. White Paper

Actuate-SAP demo. application

Enhance existing PeopleSoft demo

New e.Service Offerings

SQR->Actuate Converter

Direct Field Sales Support

Lunch and learn sessions

Active participation in POC’s with ACE’s team