ALM strategy and Portfolio

Adaptation of a Standard SAP Application Lifecycle Management Forum May 2012

©  2011 SAP AG. All rights reserved. 2 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

THE NEW NORM! The Global Economy = Forcing Customers To Think Differently

Sluggish Growth!

•  The US government is currently borrowing at roughly $47,000 per second, which will push its debt to over 100% of GDP by 2015.

•  Governments in Greece and Ireland threaten the biggest sovereign debt default since the 1930s—which could even undermine the European Monetary Union.

Shift in Economic Power to Emerging Markets!

•  By 2015, the BRIC (Brazil, Russia, India and China) economies’ share of global GDP will be 17%, nearly double what it was in 2000

•  China will surpass the US to become the world’s biggest economy by 2018

Value Driven Consumers

•  Consumers in advanced economies can no longer rely on credit to fund their spending, and are likely to be hit by higher taxes.

•  Lower- and middle-income households everywhere are being squeezed by increasing prices for food, gasoline and other essentials.

Heightened Risk & Uncertainty!

•  IMF – ‘debt burden of developed nations in 2011 is the highest since World War II‘

•  Events such as the political , natural disasters and commodity fluctuations due to greater demand among emerging markets all serve to encourage increased risk aversion, particularly in advanced economies

Capitalism Revisited

•  Sweeping changes = rethink their approach to business.

•  Net Result = shifting their strategies, business priorities and even their primary markets to ensure long-term growth

GRO

WTH

CUS

TOM

ER SUC

CES

S

EMP

LOY

EE MOT

IVATI

ON


CHANGE IS DISRUPTIVE Adaptation is critical!

1980 1990 2000 2010 Timeline of Major Business Events and Innovations

Deregulation, Japanese management techniques, Privatization, Ozone hole

Oil $50, Global Warming, Oil $147, Lehman Brothers

collapse Hong Kong and China,

e-Commerce, The Euro, Computer Viruses, Dot Com

Bust, Enron, BRIC

NMT, Windows

Commercial Internet, Web, 3-Tier Client/Server

iMac, BlackBerry

SAP R/3

SAP R/2 GSM, SMS

iPhone, Android

Chernobyl, Black Monday, Berlin Wall,

Decentralization, BPR Kindle, iPad

Icelandic Volcano, Credit Crises, Economies

Collapse.. 2nd Recession

Virtualization

Cloud

2012+

Big Data

Mobility


SAP PRODUCT STRATEGY INSTANT VALUE FOR PEOPLE EVERYWHERE

ON DEVICE

ON DEMAND

ON PREMISE OR

CH

ES

TR

AT

ION

TECHNOLOGY

ALM Overview Introduction to ALM

Overview of Processes


Protection of Investment and Accelerated Innovation   On current technology stack   Number of redundant custom

code/objects; functionality available on newer releases

SAP’s Commitment to Measurable Support KPIs ALM as an Important Value Enabler

Business Continuity   Increase number of days without an outage   Reduce mean time to resolve   Reduce overall incidents

“SAP’s goal to provide a rating of application support via key performance indicators is innovative and challenging. The extensive benchmarking phase and mapping of key performance indicators to business value will allow customers to fully understand the benefits of a comprehensive support program.”

Peter Wesche, research director, Gartner

Business Process Improvement   Number of emergency changes   Impact of change   Number of failed changes

Reduced Total Cost of Operations   CPU utilization and “overall power

growth rate”   Storage utilization and growth rate   Run and maintain work required for

deploying support packages and enhancement packages


Upgrade Management  Comprehensive project support for release

transitions

Application Lifecycle Management An Approach in Six Phases of ITIL Application Management

Landscape Transformation  Management of business- and IT-driven

changes in SAP solution landscapes

Maintenance Management  Management of corrective software

packages, reduction of waste in custom code

Business Process Operations  Help ensure business continuity  Provide business KPIs  Business process benchmarking

Technical Operations  Central monitoring and alerting

infrastructure  Unique end-user experience

monitoring  Central administration tools

Application Incident Management   Integrated service desk   Involvement of partners in problem resolution  Root-cause analysis for complex landscapes with

diverse technology stacks

Solution Documentation  Central documentation of processes,

system landscape, custom code, partner applications, and more

Solution Implementation  Discover and realize enhanced business

functionality  Avoid disruption of business

Template Management   Standardize configuration across

multiple projects

Test Management   Change impact analysis   Complete test management

Change Control Management   Integrated quality management   Synchronized transports of various

components   Controlled and documented adjustment of

business processes incl. approval process

 

 

 

 

 

   

 

 

 

 


  IT Process continuity and consistency between each phase (e.g. change management)

  Improved visibility and transparency

  Better collaboration between distributed IT (Dev./Ops.), business, and partner teams

  Leverages ITIL best practices

  Requires manual integration and/or customer integration

  Disparate and not consistent information for the entire life-cycle

  Hinders collaboration between phases and between business and IT

  Process gaps and disruptions

Move from point solutions to integrated ITIL based ALM

Require- ments

Design

Deploy

Build & Test

Optimize

Operate

Enhanced ALM Require-

ments

Design

Deploy

Build & Test

Optimize

Operate

Plan

Build Run

Point Solutions Integrated, ITIL-oriented ALM


Enhanced Application Lifecycle Management SAP Solution Manager and ALM Software = Best in class ALM platform

Upgrade Management

Maintenance Management

Application Incident Management

Change Control Management

Solution Documentation

Landscape Transformation •  SAP Landscape Transformation

Business Process Operations •  SAP Central Process Scheduling by

Redwood •  SAP Process Performance Management by

Software AG

Test Management •  SAP Quality Center by HP •  SAP LoadRunner by HP

•  SAP Test Data Migration Server (TDMS) •  SAP Test Acceleration and Optimization

(TAO)

Technical Operations

•  SAP Document Access by Open Text •  SAP Central Process Scheduling by Redwood •  SAP Extended Diagnostics by CA Wily

Solution Implementation •  SAP enterprise modeling applications by

Software AG

•  SAP Application Visualization by iRise

•  SAP Central Process Scheduling by Redwood

Template Management

SAP Solution Manager and ALM Software

Deploy

•  SAP IT Service Management (ITSM)

•  SAP Portfolio and Project Management

•  SAP Archiving by Open Text

HANA and Mobility - Highlights


SAP Application Visualization by iRise •  Business and customers directly involved in designing BW/CRM

enabled HANA apps from beginning reducing risk and costs

•  App dev hours reduced from 270hrs to 170hrs

•  Accelerated dev times; rapid adoption of new mobile apps saved $34M

SAP Central Process Scheduling by Redwood •  Automate manual steps in processes providing data to HANA

•  Orchestrate processes from complex landscape that feeds HANA analytics ensuring valid information is available ASAP

•  Reduce BP execution times by up to 60%

SAP Quality Center by HP •  Run full regression test to validate data retrieved for HANA

•  Manual and automated testing saves days to weeks of dev cycles – innovation velocity allows more apps to migrate to HANA sooner

•  Track and control every aspect of quality management as well as linking defects to functional and performance issues

Which HANA pain points are addressed by ALM solutions?

Difficult to define apps to maximize business /

customer value

Pains

Manual and inefficient processes still constrain the

performance of HANA enabled applications

Enormous risk porting apps to HANA – data issues, functionality gaps, etc.

Data volume and high number of users cause

unexpected outages costing millions

Real time complex systems are difficult to monitor and

may go down without warning

Solutions from ALM

SAP LoadRunner by HP •  Validate expected user load and volume load will not bring system

down

•  Eliminate most causes of HANA appliance failure and massive rework costs

•  Repeat tests to ensure success

SAP Extended Diagnostics by CA Wily •  24X7 monitoring of critical real time HANA systems and any other

app in landscape

•  Mean time to resolution reduced from 2 weeks to 4 days

•  Proactively tune applications feeding HANA data and accessing HANA to increase performance before outages


SAP Application Visualization by iRise •  Rapid change enabled – go from concept to demo in hours –

Innovation Velocity

•  Reduce dev times by 40%

•  90 day app definition project completed in 2 days

SAP Central Process Scheduling by Redwood •  Current information is processed automatically and pushed to mobile

devices and systems that support the mobile landscape

•  Orchestrate data staging processes so that report data is ready in real time

•  Trigger expense workflows and inventory updates from mobile devices

Which Mobility pain points are addressed by ALM solutions?

Rapid change, very precise user requirements, intuitive

apps hard for IT to build

Pains

Inaccurate critical data (e.g. inventories, etc.)

unavailable due to slow manual processes

Mobile app agility very difficult to keep up with;

long dev cycles reduce TCI

Mobile load and user counts vary unpredictably and are difficult to manage

Mobile landscape complexity makes rapid

triage and resolution hard

Solutions from ALM

SAP Quality Center by HP •  Innovation velocity – Reduce deployment time by 30% using

automated and managed manual testing

•  QC ecosystem allows automated tests to be run on device or via an emulator

•  Mobile test cycle reduced from 3 weeks to 2 days

SAP LoadRunner by HP •  Ensure mobile SLAs will be met

•  Reduce hardware costs by assessing affects of mobile user and data peak on system

•  Tests can be duplicated exactly to show how much progress was made by any proposed fix to system

SAP Extended Diagnostics by CA Wily •  24X7 monitoring of Netweaver Gateway, SUP and other critical

backend systems needed by mobile apps

•  Know within minutes when mobile users are nearing SLAs to avoid violating agreements and business users’ expectations

•  Reduce diagnosis time from 2 weeks to 3 days


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