Infovision venkatesh d k _ smac approach to enterprises

An Approach to SMAC for EnterprisesVenkatesh D.KVice President, SAP Labs India

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The Consumer is still largely Undifferentiated...Rethinking Value Chains

...And continues to be Underserved... CRM

“Female”

“Single”

“25 - 35”

“> INR 50K pm”

• 50% discount on a meal?

• $5 off on movie tickets?

The traditional value chain does not enable the customer intimacy required to delight The Segment of One

• Irrelevant advertisements!

Supplier Manufacturer Integrator Distributor Retailer Consumer

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+

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DistributorIntegrator ConsumerRetailerSupplier Manufacturer

Rethinking Value ChainsBreaking the LinksTaking a Customer-Centric View


Enabling the E2I VisionGoing beyond serial relationships...To new ways of directly selling to the consumer...To new ways of co-innovating with the consumer...

Supplier Manufacturer

Integrator

Consumer Distributor

Retailer

To new ways of co-innovating across the Value Chain...

Creating an Enterprise to INDIVIDUAL Value Lifecycle

SMAC makes the E2I Vision a Reality


Can I Be Your Friend?

http://www.youtube.com/watch?v=aDycZH0CA4I


Trends: The World Is Changing and So Is the Way We WorkProductivity and business critical collaborative work still a challenge

Business Critical Work

How do we: Grow the business

Attract top talent

Define new products

Attract key partners

Select strategic suppliers

Cost/worker/year to do email, search for or analyze information 3

don’t have the information they need 2

work with customers at least once each month 2

use ‘gut feel’ to makedecisions half of the time 1

have at least 1 measurable business benefit from Web 2.0 technologies 4

of work involves decision making, problem solving, or creation of new analysis and insight 2

90% $48,277

73% 9 of 10

60% 60%

1 BusinessWeek Research Services 2 Economist Inteligence Unit, Enterprise Knowledge Workers: Understanding risks and opportunities 3 IDC, The Hidden Costs of Information Work, Sue Feldman4 McKinsey, The Rise of the Networked Enterprise: Web 2.0 finds its payday, Dec 2010

?


Growing Impact of “Social Enterprise” initiatives


Social Business Framework


1. Juniper Research – “Mobile Apps Stores: Future Business Models & Ecosystem Analysis 2012-2016” – Feb 2012; 2. Juniper Research – “Mobile apps stores: future business models and ecosystem analysis 2012-2016” – Apr 2012;

WW apps market in 2016 Mobile app downloads by 20162 Average # of apps per device

44b 41$52b

Surge in Mobile App Usage Worldwide

of Fortune 500 plan to

implement mobile apps in 20122

80%of Global Web traffic originated from

mobile devices in May 20122

10%


Highlights from IDG Research

IDG Research polled 140 members of CIO’s invite-only LinkedIn Forum in February 2012, of which 99% held titles ranging from VP to CIO to IT Manager.


Mobility Puzzle


Portfolio Approach to Investments

Company Complex Productivity Consumer

Core 35% 10% 5%

New BusinessProcess

10% 15% 5%

User Experience & New Technologies

5% 5% 10%


Organizations earn an average of $10.66 for every dollar spent on deployments of analytics.

With such high returns, management teams should consider these technologies to be one of the most attractive investment opportunities available to the CFO.

“

”

Analytics provide proven return on investment

>1,000%Nucleus Research, “Analytics pays back $10.66 for every dollar spent”, December 2011


Browsers

EnterprisePortals

MS Office

On Demand Services

Mobile

ERP/CRM/PLM/SCM…

OLTP

Data Sources/Warehouses Analytic Capabilities Access

Social Media Content

Unstructured Content

OLAP Servers, Data Warehouses & Marts

Dashboard/Report

Performance Management

Risk and Compliance Management

Business Intelligence

Data Foundation

Enterprise Performance Management

Business Intelligence

Enterprise Information Management

Data Warehouse Management

Business Analytics

Analytic Applications


Big Data

Dat

a Vo

lum

e in

Who

le W

orld

Customer Data

Automobiles

Machine Data

Smart Meter

7.9 Zettabytes

!Point of Sale

Mobile

Structured Data

Click Stream

Social Network

Location-based Data

Text Data

IMHO, it’s great!

RFID

Future20152011

Lots of data and Petabyte data size is normal

Fast collection, processing and consumption is needed

Many formats; non-structured data is outpacing structured data growth

1.8 Zettabytes

Velocity

Variety

Volume


The Next Wave of Technology Innovation


Key Elements of Cloud StrategyClustering the 4 Driving Forces

Hardware Trends

SaaS

Public Clouds

Virtualization

Social appsAnalytical apps

Immediate use

Viral adoption

User-driven purchase

Any device Pull Effect 1-Click Install

Eco-System Play Partner

solutions

Community driven

AddOn ‘community

Service MashUp “PaaS”

Cloud computing

Hybrid Private Clouds

OnDemand

Channel Partners

App Store Buying Experience

Influencers Subscrip-tion

Pay-per-use

“Free” & Open Source

Mashup

Multi-tenancy

In-memory database

ApplicationsApplications

Ways to Sell & BuyWays to Sell & Buy

Cloud Infrastructure & Operations

Cloud Infrastructure & Operations

Co-InnovationModels

Co-InnovationModels

Source: SAP


Customer perspectiveStill adoption barriers vs. on-demand around integration, TCO, customization and security

Source: Forrester


Business ProcessesStandardized Customized

Small

Large

Com

pany

Siz

e

Source: Merril Lynch (2006)

On PremiseSupply ChainOrder FulfillmentLogisticsProcurementFinancial Settlement

On Demand / SaaSSales Force AutomationTalent ManagementPayrollWeb conferencing...

Market perspectiveSaaS: Currently more standardized processes covered


Source: Pemmaraju, K., Rangaswami, M.R., Leaders in the Cloud, Sand Hill Group, 2011

Market perspectiveWhile cloud is most popular in SME today, LE will catch-up

Our VisionHelp the world run better and improve people’s lives

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MobileAnalytics CloudDatabase & Technology

Applications

Our MissionMake every customer abest-run business

By 2015: €20 billion in total revenue, 35% operating margin, 1 billion people

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