SAP Strategy and Business
Intelligence
Paul Hawking
Victoria University Australia
Background
SAP University Alliance Program (UAP)
University

SAP
SAP User Group
SAP Academic
Program Director

SAP Mentor

Presenter

Teach Academics

Design Events

Research

Develop curriculum

Advisor

Industry Reports


Past Chairperson

Best selling author

ERP Systems and
Business Intelligence
Top 10 Most Influential
SAP People
(InsideSAP)

Visiting Professor
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Victoria University
Top CEO Business Priorities, 2013
Rank
Top 10 Business Priorities
1
Increasing enterprise growth
2
Reducing enterprise costs
3
4
Expanding into new markets and
geographies
Increase profitability
5
Implementing finance and controls
6
Talent and workforce
management/development
Consolidating, standardizing and
streamlining operations
Execute acquisitions, mergers and
partnerships
Improve governance, risk,
compliance and security
7
8
9
Gartner
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Victoria University
Strategy and Business
Intelligence
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Victoria University
Public Sector Procurement Process? - Complexity
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Integration Problems
Data
• 9/11/2011
• Last name
• Subject vs Course
Process
• Weekly vs Fortnightly
• Workflow (goods receipt)
People
• Application Screens
• Information
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Victoria University
What is an Enterprise Resource Planning System?
An ERP System can be defined as a
“modularised, integrated, real time
information system with broad functional
scope responsible for the processing and
management of business transactions”
(Hawking 2005)
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Victoria University
Why ERP?
Systems Not Y2K Compliant
42%
Disparate Systems
37%
Poor/Uncompetitive Performance
27%
Program Motivation
Poor Quality/Visibility of Info
26%
Cost Structure Too High
24%
Not Responsive Enough to Customers
21%
Complex, Ineffective Business Processes
20%
Business Processes or Systems Not Integrated
19%
Unable to Implement New Business Strategies
15%
Business Becoming Global
15%
Difficult to Integrate Acquisitions
12%
Obsolete Systems
11%
Inconsistent Processes
10%
Unable to Support Growth
6%
0%
Note: Based on multiple answers per respondent
5%
10%
15%
20%
25%
30%
35%
40%
45%
% Respondents
Source: Deloitte Consulting and Benchmarking Partners
(Based on a study of 62 companies that have gone live with an ERP system)
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Victoria University
Why ERP Systems
Integrate
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Informate
Optimise
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Victoria University
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Victoria University
Business Transformation Projects
Implement strategy through process, then continuously improve
process effectiveness and efficiency
Strategy & Business
Requirements
Business Process
Priorities
Business Transformation
Projects
Customers
Corporate
Governance
Business
Strategy
Customer
CustomerManagement
Management
Initiate
Business
Transformation
Business Control
& Finance
Toll gates &
Deliverables
Product
Product
Creation
Creation
Product
Product
Life
Life
Cycle
Cycle
Communications
Order
Order
Fulfilment
Fulfilment
Capital
Capital
Equipment
Equipment
Order
Order
Fulfilment
Fulfilment
Packaging
Packaging
Material
Material
Order
Order
Fulfilment
Fulfilment
Service
Service
Products
Products
Analyse
Potential value
Fit with strategic
priorities
Design
Plan
As-Is description
with f act base
To-be description
of new approach
Initiative KPI and
Baseline
Stakeholder input
Project Charter
Financial Potential
Develop
Conf irmed
Implementation plan
(Cluster)
Implement
Pilot evaluation
PM and SG
Leadership and
resource plan
Milestone
completion
Solution ready to
implement
Business Case
High-Level
Business Case
Conf irmed Business
Case
Benef it
verif ication
High-Level
Implementation
Plan
Legal & Tax
Human
Resources
Supplier
SupplierManagement
Management
Information
Technology
Suppliers
=
Performance
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GLT member
x
Processes
GLT member
GLT member
T Council
GLT member
T Council
x
People
@
Tools
Victoria University
Business Role of BI (TWDI)
Complexity
Prediction
Monitoring
Analysis
• Why did it
happen?
• What’s
happening
now?
• What might
happen?
Reporting
• What
happened?
Business Value
SAP Update And Strategy
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Victoria University
ASUG Business Intelligence Maturity Model
Stage
Information
and Analytics
1
2
3
4
Information
Dictatorship
Information
Anarchy
Information
Dictatorship
Information
Collaboration
Requirements
are driven from
a limited
executive
group
KPI’s and
analytics are
identified, but
not well used
KPI’s and
analytics are
identified and
effectively
used
KPI’s and
analytics are
used to
manage the
full value chain
IT driven BI
Business
driven BI
evolving
BI
Competency
Centre
developing
Enterprise
wide BI
governance
with business
leadership
Do not exist or
are not uniform
Evolving effort
to formalise
Exist and are
not uniform
Uniform,
followed and
audited
BI “silos” for
each business
unit
Some shared
BI applications
Consolidating
and upgrading
Robust &
flexible BI
architecture
Governance
Standards
and
processes
Application
Architecture
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Measuring BI Success and Value
•
•
•
Create a formal, continuous process for measuring
success and value generated
Identify and measure results of each project phase
Establish realistic goals and expectations based on
capability / maturity
Value Created
Operational
Success
User
Success
Implementation
Success
•
•
•
•
• Productivity
improvements
• Process
efficiency and
effectiveness
• Key performance
indicators
(McDonald 2004)
Business
Success
• Return on
investment
• Economic value
add
• Revenue
increases
• Cost Savings
• Customer /
corporate profits
• Enables Business
Strategy and
Completive
Advantage
User adoption
Usage tracking
User satisfaction
Data problems
• On-time, On-budget
Overall Success of the BI Initiative
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Victoria University
Meta Data
Data
Integration
Master Data
BICC
Data
Quality
BI
Strategy
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Executive
Support
@
Victoria University
Skills
Systems Applications and Products in Data
Processing
SAP AG founded 1972
 2011 Revenues: € 14.5 billion
 56,000 SAP employees
200,000 customers in 130 countries
More than 10 million users worldwide
 Biggest company > 300,000 users
 Smallest company < 5 users
~ 250 million lines of code
More than 1,600 partners
SAP Update And Strategy
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Victoria University
SAP Targets for 2015
• Over €20 billion revenues
• 35% operating margin (non-IFRS)
• To reach 1 billion people
• Build a €2 billion cloud business
• Become the fastest-growing database Company
http://www.sap.com/corporate-en/investors/pdf/SAP-Fact-Sheet-EN.pdf
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SAP has a massive impact on industries, businesses,
governments, and communities
Production of 40 million
barrels of oil per day
50 million
Production of 32,000
car engines per day
Bank accounts
Retail outlets transactions
totaling $330 million
per day
75%
of worldwide
annual beer production
(1.5 billion hectoliter)
54 million
Defense forces across
107 countries
65%
Annual health-care Processing of
patient visits (US
2.5 billion
Only)
utility bills per day
of worldwide annual chocolate
production (2.2 million tons)
Production of 4 million
tons of chemicals per day
© SAP AG 2009. All rights reserved. / Page 18
SAP Update And Strategy
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Victoria University
Executive Priorities, 2013
Rank
Top 10 CEO’s Business Priorities
Top 10 CIO’s Technology Priorities
1
Increasing enterprise growth
2
Reducing enterprise costs
Analytics and business
intelligence
Mobile technologies
3
Expanding into new markets and
geographies
Increase profitability
4
5
6
7
8
9
Implementing finance and
controls
Talent and workforce
management/development
Consolidating, standardizing and
streamlining operations
Execute acquisitions, mergers
and partnerships
Improve governance, risk,
compliance and security
Cloud computing (SaaS, Iaas,
Paas)
Collaboration technologies
(workflow)
Legacy modernisation
IT management
Customer Relationship
Management (CRM)
Virtualisation
Security
ERP Applications
Gartner
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Victoria University
SAP’s STRATEGY
FIVE MARKETS
APPLICATIONS
ANALYTICS
DATABASE &
TECHNOLOGY
MOBILE
CLOUD
HANA
SERVICES
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Victoria University
SAP’s STRATEGY
FIVE MARKETS
APPLICATIONS
ANALYTICS
DATABASE &
TECHNOLOGY
MOBILE
CLOUD
HANA
SERVICES
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Victoria University
SAP ERP – Business Suite
2005
2000s
SAP R/3
Enterprise
Common
Kernel
•
•
•
•
•
•
•
•
Open Web services standards
Open integration platform
Interoperability
Model driven
Configurable
Extensible
Services composition
Process innovation
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Victoria University
SME SAP Solutions
SAP All In One
SAP Business One
 Midsize companies and
subsidiaries
 Small enterprises and subsidiaries
 Complete functionality
 Easy to get started

Pre-configured,
single database
 Adaptable

Industry templates & configurable
 Partner network with

Proven solutions and expertise
 Proven ROI and over 2000
customers
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 “Off-the-shelf” product

Easy to customize
 Wide range of innovative
functionality
 Immediate impact

Easy to use / running in a few
days
 Low cost of entry and
ownership
 Low maintenance
 Over 800 customers
@
Victoria University
SAP Business By Design
A web-based business management
software service which moves away from
its traditional software. (“Software as a
Service”)
Aimed at businesses with 100 to 500
employees, users can draw together data
from different parts of their business.
Includes eight areas of data analytics and
management : finances, human resources,
supply chain, goals, customer
relationships, projects, supplier
relationships, and compliance.
The service will cost $149 per month per
user. There is a minimum of 25 licensed
users, and the cost includes software,
infrastructure, services and support
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Victoria University
World Leader In Enterprise Applications
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The World’s Top Companies Use SAP
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Victoria University
SAP’s STRATEGY
FIVE MARKETS
APPLICATIONS
ANALYTICS
DATABASE &
TECHNOLOGY
MOBILE
CLOUD
HANA
SERVICES
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Victoria University
Business Intelligence Priorities - Analysts/SAP
In
Memory
Embedded
Cloud
Business
Intelligence
Self
Service
Collaborative
Mobile
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BI Consolidation
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Analytics (Business Intelligence)
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Business Drivers and Target Groups
Predictive
Analysis
Design
Studio
Visual
Intelligence
Analysis
(OLAP/Office)
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Victoria University
SAP’s STRATEGY
FIVE MARKETS
APPLICATIONS
ANALYTICS
DATABASE &
TECHNOLOGY
MOBILE
CLOUD
HANA
SERVICES
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Victoria University
Big Data?
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SAP HANA
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Victoria University
SAP Update And Strategy
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Victoria University
SAP’s STRATEGY
FIVE MARKETS
APPLICATIONS
ANALYTICS
DATABASE &
TECHNOLOGY
MOBILE
CLOUD
HANA
SERVICES
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Victoria University
World Leader In Mobility
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SAP’s Mobility Solution
Support for All
Popular Devices
SAP Store
Implementation and Hosting Services
Instant
Mobilization
LoB/Industry Apps
Customer/Partner Apps
Analytics Apps
SAP Mobility Platform
Mobile Enterprise
Application Platform (MEAP)
Mobile Device
Management
Mobile Consumer
Application Platform (MCAP)
Full-Service
Platform
Backend
Agnostic
SAP Business Suite
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Databases
3rd Party Applications
@
Victoria University
SAP’s STRATEGY
FIVE MARKETS
APPLICATIONS
ANALYTICS
DATABASE &
TECHNOLOGY
MOBILE
CLOUD
HANA
SERVICES
SAP Update And Strategy
@
Victoria University
SAP Cloud Applications
“Loosely Coupled” Line of Business Cloud Solutions
SuccessFactors
BizX
Customer
OnDemand
Financials
OnDemand
 EmployeeCentral
 Sales
 Service
 Marketing
 Social Customer
Core Financials
Global Core HR
 Global Cloud
Payroll
 End-to-end Talent
Management
Engagement
Sales & Purchase
Order Processing
Project Management
Cloud Suite
Business
ByDesign
Ariba
 Strategic Sourcing
 Contract Lifecycle
Management
 Supplier
Management
 Cloud ERP for
upper mid and
subsidiaries – 50 to
1,000 employees
Business One
Cloud
 Small business
Travel OnDemand
essentials - 10 to
100 employees
Cross Solution: Social (SAP Jam) / Analytics / Mobility / Business Networks
SAP HANA
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Hybrid Model
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There Is a Huge demand for SAP Consultants
 About 164,000 active SAP Consultants in the world
(Global and local SIs, Staffing Agencies, Free-lancers,
Offshore suppliers)
 Annual growth in SAP Consultants demand: 6%
 All countries concerned; emphasis on US and Germany, BRIC
 Focus shifting due to increasing share of Offshore-Delivery
from 9% to 14% of all delivery resources
 Main topics:

Mature markets: Experienced (5 to 8 years) consultants Experts/specialist with process or Industry background, project
managers, SAP NetWeaver, ESOA, Offshore capacities

Emerging Markets: Young & Experienced consultants - project
managers, commodity skills, ERP, technical (SAP NetWeaver,
Basis), mid-market
 Between 2007 and 2010, about 30,000 new Consultants (Net
New) needed in the ecosystem (up to about 200,000
consultants) of which about 18,000 in onshore and 12,500 in
offshore locations
Source: SAP and PAC Pierre Audoin Consultants
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Graduates Will Need a Broader Mix of Skills
Competence
Profiles
Solution
Profiles
Competence Profiles
 Core
Competencies
 Function-specific
know-
how
-
Tools & Methodologies
-
Consulting / Education
know-how
 Managerial
Industry
Focus
Product and Computing
Skills
Industry Focus
 Indicating
industry
experience collected
during projects
 Process Skills
 Application
Skills
 Technical Skills
Competencies
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Paul Hawking
SAP Academic Programs Director
College of Business
Telephone: +61-3-99194031
Mobile:
+61-419301628
Email
Paul.Hawking@vu.edu.au
Paulhawking #SAPVU
SAP Update And Strategy
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Victoria University