SAP NetWeaver:
Enabling the Smart Enterprise
Lothar Schubert
SAP Labs Palo Alto, LLC
lothar.schubert@sap.com
Business Challenges for Smart Enterprises
Meeting the Key Business Challenges
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action
Business Challenges for Smart Enterprises
Meeting the Key Business Challenges
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action
Few Companies Manage to Stay on Top
Companies
in S&P index
500
… those
still remaining
74
… those
that outperformed
S&P index
overall
12
1957
1998
1998
Source: S&P Index, McKinsey, MMG
 SAP 2004, ‹#›
Sustainable, Profitable Growth
THE WINNING STRATEGY
Refocus on GROWTH
as the economic re-bound has arrived
Drive PROFITABILITY of growth
as you keep improving margins
Ensure SUSTAINABILITY of growth
as you innovate
 SAP 2004, ‹#›
The Winning Strategy
GROWTH THROUGH INNOVATION
Relationship
excellence
Innovation
Sustainable,
Profitable
Growth
Innovation
Product/service
excellence
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Innovation
Operational
excellence
Business Process
 SAP 2004, ‹#›
Departmental Perspectives
“it’s just one
missed sale”
“will be back
in inventory”
“not a key
customer”
“extra effort
costs $$$”
???
“see & wait”
 SAP 2004, ‹#›
The Bigger Picture: External and Internal Pressures
Competitive Forces
Macro
Economical
Trends
 Price competition
 Vertical integration
• Labor market
• Interest rates
• SOX
• Basel II
Compliance
Requirements
• Demographics
• Buying behavior
Market Trends
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Integrated Management Processes
Corporate Strategy
Strategic Planning
1.
2.
3.
4.
 Scenario simulation
 Cash-Flow Forecast
Increase quality of service
Drive transparency
Invest in innovation
…
Perform. Management
Management
 Operational planning
 Process optimization
 Operational execution
 Goal setting
 Alignment of interest
 Goal measurement
 SAP 2004, ‹#›
Business Process
“it’s a missed
sale”
“will be back
in inventory”
“not a key
customer”
“extra effort
costs $$$”
???
“see & wait”
 SAP 2004, ‹#›
Business Process
Defection
Risk
Inventory
Forecast
Returns
Per
Customer
CLTV
Delivery
Performance
 SAP 2004, ‹#›
Accuracy
Business Process
Defection
Risk
Inventory
Forecast
Returns
Per
Customer
CLTV
Delivery
Performance
 SAP 2004, ‹#›
Accuracy
5 Key Business Challenges
1. Execution not aligned with Corporate Strategy
 Corporate strategy not communicated clearly
 Individual objectives not aligned with strategy
 Poor measurement, and no corrective actions
2. Ineffective Decision Making Processes
 Decisions delayed, or made on ‘gut feel’ only
 Key stakeholders not involved
 Solid information only available to small ‘elite’
3. Increasing Competitive and Market Pressures
 Lack of insight into markets and trends
 Opportunities frequently missed
4. Compliance Requirements
 Calls for transparency
 Increasing criticality of trustworthy data
5. Budget Constrains
 Need to do more with less, and need to justify expenditures
 SAP 2004, ‹#›
Business Challenges for Smart Enterprises
Meeting the Key Business Challenges
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action
Challenge 1: Execution Not Aligned With Corporate Strategy
“Less than 10% of strategies effectively formulated are effectively executed.”
Fortune
Aligning Strategy with Execution requires:
• Common set of Metrics, KPI’s and Benchmarks
• Balanced Scorecards
• Solid and integrated planning framework
 Corporate Performance Management
 SAP 2004, ‹#›
Challenge 2: Ineffective Decision Making Processes
Source: SAP
Improved Decision Making requires:
 Reliable, up-to-date and easily accessible information
 Context, Guidance, and Collaboration
 Information actionable and in consumable format
Self Service and Information Democracy
 SAP 2004, ‹#›
Challenge 3: Increased Competitive- and Market Pressures
Account Planning
“If you know the enemy and know yourself, you need
not fear the result of a hundred battles. If you know
yourself, but not the enemy, for every victory gained
you will also suffer a defeat. If you know neither the
enemy or yourself, you will succumb in every battle.”
Sun Tsu, The Art of War, 500 B.C.
Opportunity discovery and exploitation requires:
• Predictive Analytics, Planning & Forecasting
• Analytics embedded into Applications
• Closing the Loop via Analytical Application
 Smart people using smart applications
 SAP 2004, ‹#›
Challenge 4: Compliance Requirements
“The keys to meeting Sarbanes-Oxley requirements will be the
timeliness of the reporting, as well as the validation that the system
can detect and report the ‘material events’.” Gartner G2, 2004
SAP Management of Internal Controls (MIC) Reporting, Section 404
Compliance and Corporate Governance calls for:
• Transparency, and single version of truth
• Trustworthy and auditable data (historic and current)
• Right-time reporting, exception notification and alerts
 Reliability, completeness and transparency
 SAP 2004, ‹#›
Challenge 5: Budget Constrains
“[ETL] processes ... can absorb up to 70% of the time spent on a
typical DWH project.”
DM Review, 3/01
“… it is clear that a single architecture will yield a better ROI, is
more likely to come online faster, and is less likely to fail,
undeniably.”
Neil Raden, Analyst, 1/04
Calls for IT budget justification and doing ‘more for less’ requires:
• Out-of-the-box templates and analytical applications
• Integration with applications, and openness for change
• Proven methodology and comprehensive support infrastructure
 Buy versus build, from viable partner
 SAP 2004, ‹#›
Meeting the 5 Key Business Challenges
1. Execution not aligned with Corporate Strategy
 Corporate
Performance Management
2. Ineffective Decision Making Processes
 Self
Service and Information Democracy
3. Increasing Competitive and Market Pressures
 Smart
people using smart applications
4. Compliance Requirements
 Reliability,
completeness and transparency
5. Budget Constrains
 Buy from a strategic partner, don’t build
A smart business requires a complete, end-to-end,
reliable and open BI Platform.
 SAP 2004, ‹#›
Business Challenges for Smart Enterprises
Meeting the Key Business Challenges
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action
The Business Intelligence Platform
DataMart
DataMart
DataMart
Data Warehouse
Integration Broker
ERP/CRM/SCM/External Sources
Presentation
Ad Hoc Query
and Reporting
Statutory
Reporting
Budget
Plan/Forecast
Balanced
Scorecard
Consolidation
Modeling and
Optimization
Knowledge Management
Content Management
Business Proc. Management
Web Presentation/Portal/Mgmt Reporting
DataMart
CPM
Applications
BI
Infrastructure
Data
Sources
Architecture Source: Gartner
(“Managing Corporate Performance – What you need to know”; Lee Geishecker & Frank Buytendijk, 4/04)
 SAP 2004, ‹#›
SAP NETWEAVER
ONE PLATFORM – ONE PRODUCT
Open integration and application
platform that enables change!
SAP NetWeaver™
1 Foundation
Web AS 6.40
PEOPLE INTEGRATION
Collaboration
INFORMATION INTEGRATION
Bus. Intelligence Knowledge Mgmt
Master Data Mgmt
PROCESS INTEGRATION
Integration
Broker
Business
Process Mgmt
APPLICATION PLATFORM
SAP delivers the
reliable and
J2EE
ABAP
DB and OS Abstraction
 SAP 2004, ‹#›
Life Cycle Mgmt
Composite Application Framework
Multi channel access
Portal
1 Platform
Synchronized release dates
1 Package
Coherent installation process
1 Set of scenarios
Integrated components
All Apps
Business Suite, partner
complete,
end-to-end,
solutions
and xApps
open BI
Solution.
developed
on NetWeaver
Accelerating NetWeaver Adoption with IT Practices
High
Right-time data access
Ability to Change your Business
Implement XI
Collaboration
Reports for real-time data to complement
the batch-oriented data access of analytic
applications and operational reporting;
Implement Collaboration Rooms
Share documents; collaborate with colleagues for
planning and resolution of business issues
Information Delivery
Implement Portal
Low cost distribution of personalized
reports and alerts to a wide audience
Reports
Implement BW
Provide periodic operational reports to executives
from multiple source
Applications & Application Services Platform Integration
Low
 SAP 2004, ‹#›
High
Business Intelligence – Overall Solution
 SAP 2004, ‹#›
Business Intelligence – Overall Solution
 SAP 2004, ‹#›
Capabilities
Data Warehousing and Analysis






Data Warehouse Management
Extraction, Transformation and Loading
Business Modeling
OLAP Technology
Data Mining and Predictive Analytics
Alerting
Information Delivery
•
•
•
•
Query Design
Reporting and Analysis
Alert Notification and Report Broadcasting
Security and Personalization
Measurement and Management





KPI’s, Metrics and Dashboards
Business Planning and Simulation
Business Consolidation (delivered via mySAP ERP Financials)
Business Performance Measurement (delivered via mySAP ERP Financials)
Collaboration and Guided Procedures
Best Business Practices


Business Content and Industry Templates
Metadata Management
 SAP 2004, ‹#›
mySAP ERP powered by SAP NetWeaver
Application
mySAP ERP Edition 2004+
Additional Components
mySAP ERP Edition 2003
Self Service Procurement
Additional Components
Internet Sales
Self Services
… and more
Self Service Procurement
up to 4.6C
Application
SAP ERP Central Component
… and more
Self Services
SAP R/3 Enterprise
Strategic Enterprise Management
SAP Enterprise Extension Set
SAP ECC Extension Set
Industry
Enablement
SAP R/3 Enterprise Core
SAP ECC Core
SAP NetWeaver™
SAP NetWeaver™ ‘04
PEOPLE INTEGRATION
Multi Channel Access
Portal
Collaboration
INFORMATION INTEGRATION
Bus. Intelligence
Knowledge Mgmt
Master Data Mgmt
PROCESS INTEGRATION
Business
Integration
Process Mgmt
Broker
APPLICATION PLATFORM
J2EE
ABAP
DB and OS Abstraction
PEOPLE INTEGRATION
Multi Channel Access
Portal
Collaboration
INFORMATION INTEGRATION
Bus. Intelligence
Knowledge Mgmt
Master Data Mgmt
PROCESS INTEGRATION
Business
Integration
Process Mgmt
Broker
APPLICATION PLATFORM
J2EE
ABAP
DB and OS Abstraction
Life Cycle Mgmt
 SAP 2004, ‹#›
SAP Web
Application Server
Strategic Enterprise Management
Life Cycle Mgmt
Technology
SAP Basis
SAP Enterprise
Extension Set
SAP R/3
Enterprise Core
Composite Application Framework
SAP R/3
Composite Applications
Composite Application Framework
SAP R/3 Enterprise
Internet Sales
Roadmap
BW 2.0
- Operational Data Store
- Rich Functionality
- Web Reporting
BW 1.2
- All-in-one
- Application Integration
- Business Content
 SAP 2004, ‹#›
BW 3.0
- Easy of use
- Openness
- Tool Integration
BW 2.1c
- Content Release
SAP NetWeaver xx
- Expanded Enterprise
- Active BI
- Advanced user experience
SAP NetWeaver 04
- Extending the reach
- Planning and forecasting
- SAP NetWeaver integration
Business Challenges for Smart Enterprises
Meeting the Key Business Challenges
SAP NetWeaver enabling Smart Enterprises
SAP Business Intelligence in Action
SAP NetWeaver™ at Aventis
 SAP 2004, ‹#›
SAP NetWeaver™ at Dow Corning
 SAP 2004, ‹#›
The SAP BI Advantage
 Enabling of accurate, faster and actionable information
 Compliance with industry regulation thus mitigating
business risks
 Connecting Corporate Goals, Objectives and Strategies
to an individual contributor level
 Information Democracy and Self-Service
 Predictive analytics and smarter applications to grow the
business
 Quick wins and faster Return on Investment
SAP NetWeaver delivers the complete,
end-to-end, reliable and open BI solution,
enabling the smart enterprise.
 SAP 2004, ‹#›
SAP NetWeaver:
Enabling the Smart Enterprise
Lothar Schubert
SAP Labs Palo Alto, LLC
lothar.schubert@sap.com