Welcome to a New Dimension
of Business Solutions
an introduction
Singgih Wandojo
SAP Indonesia
Information Technology is
NOT a Software Purchase
But a Business System
Purchase
Building an Information
Technology is NOT JUST
to Automate the Business
Processes
Building an Information
Technology is to ENABLE
the Business Strategy
Information Technology
is a
BUSINESS DRIVER
The New Business Environment
Shareholders
 Active
 Real-time information
 ...
Employee
 Mobility
 Job enrichment
 ...
Enterprise
Society
 Local competition
 “made in” “made by”
 ...
Customer
Partner
 Less loyal
 New competitors
 Price transparency
 ...
 Mergers and acquisitions
 ...
…A highly unpredictable place to do business
 SAP AG 2000 Executive Overview / 6
What is SAP?
“SAP enables you to positively transform your company
so that the maximum potential for your business and your
people can be reached. We always strive for excellence to
become your long-term partner and to provide the tools
you need to improve your company’s value”.
 SAP AG 2000 Executive Overview / 7
From Internal Efficiency to Creating Value
Creating
Value
Resource Optimization &
Customer Orientation
Beyond ERP
 Customer Insight
 Value chain optimizer
 Value based management
 + Doing e-business
 + Web-based collaboration
Integration & Automation
Enterprise Resource Planning
 Cost reduction
 Reduce cycle times
 Reduce lead times
 Transactional processing
 Automating Business Process
 Traditional technology
Internal
Efficiency
Requirement
 SAP AG 2000 Executive Overview / 8
Solution
SAP Extended Integrated Business Solutions
19
 Finance &
Accounting
 Human Resource
Management
 Logistics
 SAP AG 2000 Executive Overview / 9
 SAP Customer
Relationship Management
 SAP Supply Chain
Management
 SAP Business Intelligence
 SAP Strategic Enterprise
Management
Why SAP? ... Industry focus
SAP High Tech & Electronics
SAP Engineering & Construction
SAP Consumer Products
SAP Oil & Gas
SAP Transport
Business
Information
Warehouse
SAP Utilities
Sales
Force
Automation
SAP Health Care
...
R/3
SAP Automotive
SAP Aerospace & Defense
SAP Service Providers
SAP Mills
 SAP AG 2000 Executive Overview / 10
SAP Telecom
SAP Chemicals
SAP Media
Advanced
Planner &
Optimizer
SAP Public Sector
B2B
Procurement
SAP Pharmaceuticals
SAP Retail
SAP Banking
From Integration to Collaboration
Portals
Employee Self
Business Customer Relationship
Services e-Commerce Intelligence
Management
Industry
Solutions
Business Framework
Technology, BAPIs
Supply Chain
Management
Business
Scenarios
Outsourcing
Workplaces Marketplaces
Partnering
Platform
XML-enabling
Internet Application
Components
Continuous Knowledge Transfer
9
4
Enterprise Resource
Planning
 SAP AG 2000 Executive Overview / 11
97
Inter-Enterprise
Cooperation
99
e-Community
Collaboration
mySAP.com principles
BUSINESS
PERSONAL
Portals
Structured access 
for business
User
Empowering the 
Empowerment
individual
Self service 
User Roles
Role-based, 
Web access
Value Creation
Partnership
Collaboration





Active knowledge
Users form new markets
Open environment
One-step business
Business contextual
integration
INTERNET
Outsourcing
Community
Technology
 SAP AG 2000 Executive Overview / 12
 Implementation
outsourcing
 Building
relationships
 Scalable Internet
architecture
How do I manage the complexity
mySAP.com Workplace
R/2
3rd
open
Internet party
standards
legacy
non mySAP.com
3.1H
single
signon
Web browser access
R/3 4.6
LO
HR
FI
Workplace
industry-specific Cockrole-based pits
personalized
drag & relate
CFM
KM
SEM
APO
B2B
mySAP.com components
BW
CRM
inside
other Internet services
 SAP AG 2000 Executive Overview / 13
Partner
Marketoutside
place
mySAP.com Internet services
SAP
SAP Workplace and Marketplace - Business Portal
mySAP.com Overview
mySAP.com
Workplace
Company/
Organization
boundary
mySAP.com
Marketplace
Business
Scenarios
Communities
SAP & non-SAP
Components
Web Services
Information and services within
company context
 SAP AG 2000 Executive Overview / 14
Information and services outside
company context
The www.mySAP.com Marketplace
Pilot installation of the Marketplace product
Commerce
Community
 Business directory
 Business document
exchange
 Buying and selling
 Global catalog
 20 industry-specific
and 4 horizontal
communities
 Chat/forum
One-Step Business
Content
Collaboration
 High quality content for business
professionals
 News, etc.
 SAP AG 2000 Executive Overview / 15




Distributor reseller mgmt
Collaborative forecasting
RFP/RFQ
Dynamic pricing
Needed : A new type of management processes
Translate the
Strategy
Rationalize & Align the
Organization
Testing Hypotheses,
Adapting and Learning
Formulate
Executive Teams Manage
Strategic Themes
Comprehensive
Communication to
Create Awareness
STRATEGY
Communicate
Navigate
Align Goals &
Incentives
Create Knowledge
Networks
Execute
Align Resources &
Initiatives
Strategic Feedback
Encourages
Learning
Reengineer
Processes
Business Execution System
Human Resource
Management
Extended Financials
Customer
Management
Supply Chain Management
 SAP AG 2000 Executive Overview / 16
Source: The Balanced Scorecard Collaborative, Inc.
How will companies do it ?
Research Has Identified Four Barriers to Strategic Implementation
The Vision Barrier
Only 5% of the work force
understands the strategy
The People Barrier
Only 25% of managers have
incentives linked to strategy
9 of 10
companies fail
to execute
strategy
The Management Barrier
85% of executive teams spend
less than one hour per month
discussing strategy
The Resource Barrier
60% of organization don’t link
budgets to strategy
 SAP AG 2000 Executive Overview / 17
Source: The Balanced Scorecard Collaborative, Inc.
The Enterprise as an Information Model
long term
short term
Capital resources
Logistic process
Production
Procurement
Purchase orders
 materials
Warehouse
Processes
Sales
Warehouse
 services
 services
Vendor
Client
Raw Material
Products
Material resources
Capacity resources
 SAP AG 2000 Executive Overview / 18
Sales orders
 products
The Total Eco-system
Enterprise Partners
Collaborative
Planning &
Forecasting
Supplier
Buying /
Procurement
Invoicing /
Payment
Collaborative
Applications
Logistics/
Production
Finance
Online
Personalization
Strategic
Enterprise
Management
Sales &
Marketing
Order
Fulfillment
Human
Resource
Knowledge
Mgmt./
Research
Online
Selling/
Catalog
Employee Self Service
Employees
 SAP AG 2000 Executive Overview / 19
Online
Service
Billing /
Payment
Customer
Information Model For Consumer Industry
Strategic Enterprise Management (SEM)
Business Information Warehouse (BIW)
Customer Relationship Management (CRM)
Supply Chain Management (SCM)
SAP Consumer Industry Component
FINANCE
Management
L O G I S T I C S Management
H U M A N R E S O U R C E Management
 SAP AG 2000 Executive Overview / 20
SAP Consumer Products, Edition 2000
Business Intelligence
& Data Warehousing
Managerial
Accounting
Financial
Accounting
Enterprise
Management
Strategic Enterprise
Management
Customer Relationship
Management
Sales Force
Management
Marketing & Innovation
Market Research
& Analysis
Product
Management
Brand
Management
Marketing
Program
Management
Advertising &
Consumer
Promotion
Supply Chain
Planning
Demand
Forecasting
Procurement
Manufacturing
Distribution
Human Resource
Management
Procurement
Treasury
Fixed Asset
Management
Knowledge
Management
Supply Chain
Management
Business Support
 SAP AG 2000 Executive Overview / 21
Sales Cycle
Management
Customer
Service
Key Account
Management
Trade
Promotions
Category
Management
SAP Advance Planning and Optimization
Network Design
Demand Planning
Supply Network Planning
Production Planning/
Detailed Scheduling
Manufacturer
Supplier
Production
Purchasing
Supply Chain
Planning
 SAP AG 2000 Executive Overview / 22
VMI
Deployment
Distribution Center
Global ATP
Retail Outlet
Customer
Transportation
Management
Warehouse
Management
Sales
Service
Management
Planning & Execution
mySAP.com CRM Business Scenarios
Tiered
Servicing
Customer
development
Service
center
Internet
Sales
Internet
Customer
Self
Service
Relationship
Intelligence
Marketing
Analysis
Field
Sales
Field
Service
Common Reporting Tools
Shared Intelligent Agents
Sales
Mgmt. &
Support
 SAP AG 2000 Executive Overview / 23
Retention
management
Common Data Model
Product
& Brand
Mgmt.
Internet
marketing
Tele
marketing
Service
Interaction
Center
Business
Partner
Collaboration
Tele
Sales
SAP Business Information Warehouse
Decision Support System for Middle Up Manager
Business Intelligence
and
Data Warehousing
Powerful Information Analysis
- innovative, intuitive user interface
- powerful OLAP analysis
- for all types of users
Rich Business Content (financial, logistic, HR)
- predefined meta data
- R/3 extractors and interfaces
- information models (InfoCubes) and Reports
R/3
 SAP AG 2000 Executive Overview / 24
other
systems
End-to-end Data Warehousing Solution
- R/3 and non-R/3 data extraction
- fully automated
- central control
SAP Business Information Warehouse
Foundation for Benchmarking
More than 250 Key Performance Indicators
Return on investment
Delivery time
Degree of fulfillment
Cost variance
Input quantity variance
Usage variance
Price key figures
Headcount
Revenue per employee
Employee turnover
Payables / receivables
Depreciation
Quality key figures
 SAP AG 2000 Executive Overview / 25
Service level
Scheduled delivery date
variance
Customer analysis key
figures
Purchasing group analysis
Vendor evaluation
Credit standing
Inventory turnover
Range of coverage
Inventory key figures
Productivity rate
Personnel times
Absence quota
Wage type distribution
Fee distribution
Average headcount
Average age
Net entry rate
Applications per entry
Material consumption key
figures
Scrap rate
Lead time variance
capacity load utilization
Scrap variance
Liquidity key figures
Cash management
position
Economic Profit
Balance sheet key figures
Legal consolidation key
figures
Returns quota
Order key figures
Revenue variance
Percentage return on sales
...
SAP Business Information Warehouse
 SAP AG 2000 Executive Overview / 26
SAP Strategic Enterprise Management
Integrating strategic, financial and operational information
Strategic
Enterprise
Management
Business Process Management
Business Process Management
Analyze
stakeholder
expectations
Simulate + decide
business strategy
Define targets
for BU`s /
investments
Manage
performance
Communicate
results & manage
stakeholder
relations
Strategic Enterprise Management Process
Focus:

Develop strategies, which meet stakeholder demands, and
manage its execution (translate it into action)
 Dedicate resources (capital, employees), so that this process
generates returns above cost of capital / above stakeholder
expectations
 Constantly monitor and manage performance and adapt strategy
 SAP AG 2000 Executive Overview / 27
SAP Management Cockpit
Strategic
Enterprise
Management
Performance monitoring, simulation of alternative business
scenarios, resource reallocation and new target setting
should be possible within one management meeting in the
Management Cockpit Room
 SAP AG 2000 Executive Overview / 28
The Benefits for Your Business
SAP helps to extend your company’s competitive capabilities
Efficiency
 Measure and improve profits
throughout your supply chain
Responsiveness
 Service customers better
Agility
 Act quickly on new marketing
opportunities
Reliability
 Ensuring maximum
availability
 SAP AG 2000 Executive Overview / 29
Business Solutions Benefits
Impact of ‘Production Execution Solution’ on Business Cycle …
External Side
Flexibility of order amendment
Improved Top Line
Increased customer satisfaction
Improved CRM
Improved Gross
Margins
Internal Work Cycle
Reduced Cost of
Good Sold
Efficient raw material inventory utilization
Better ROI
Efficient finished goods management
Better Management of Supply Chain
Combination/Splitting of orders to suit plant runs
Reduced Plant
Maintenance
Reduced Capital
Expenditure
Better Cashflow
Reduction in Working
Capital
...We can relate ‘Solutions’ to improvement in ROI and/or Cash Flow
…and hit the right chord with our customers!
 SAP AG 2000 Executive Overview / 30
Building an IT Infrastructure
 SAP AG 2000 Executive Overview / 31
Cost of Ownership
Country Versions
Costs
 1x
installation
 1x release upgrade
 no interfaces
 1x training
 1x data transfer
 1x rollout
n
x installation
 n x release upgrade
 m x interfaces
 n x training
 n x data transfer
 y rollouts
Quality Management
Maintenance
PDM
EIS
Reporting
Reporting/EIS
Workflow
Reporting/EIS
 SAP AG 2000 Executive Overview / 32
Controlling
Finances
PPS
Sales
Development
Workbench
System Administration
Product X
Purchasing
Workflow
Human Resources
QM / PM
Human Resources
Controlling
Finances & Assets
PPS / PS
Sales
Purchasing
System Administration
Average TCO as a Proportion of Turnover
Average TCO / corporate turnover (percentage)
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
ALL
Source: Study by the META Group, 4/99: ‘ERM Solutions and Their Value’
 SAP AG 2000 Executive Overview / 33
ERP Implementation Times in Months
Average
Lowest
Highest
25
12
38
22
6
44
23
7
56
26
4
70
25
12
48
20
3
48
Source: Study by the META Group, 4/99: ‘ERM Solutions and Their Value’
 SAP AG 2000 Executive Overview / 34
Gartner 1998 ERP Magic Quadrant
CHALLENGERS
LEADERS
SAP
JDE World
ABILITY
TO
EXECUTE
Intentia
Marcam Protean
Ross
Oracle
SCT
Baan
SSA
QAD IFS PeopleSoft
Oracle Process
JDE OneWorld
Marcam Prism
Cincom
JBA
Platinum
WDS
Impresa MRO
IBS
NICHE PLAYERS
VISIONARIES
COMPLETENESS OF VISION
 SAP AG 2000 Executive Overview / 35
Source: Gartner Group, Dec. ‘98
ASEAN ERP Vendor Market Share
45%
42.9%
40%
35%
30%
25%
20%
15%
6.9% 6.4% 5.5%
10%
5.4% 4.9%
5%
0%
SAP
BAAN
PeopleSoft
SSA
JD
Edwards
Oracle
Source : IDC ASEAN ERP Software Market 1998
* The revenue is based on software licence and maintenance
* ERP is defined as providing solution for at least 3 of the components, Finance,
Sales & Distribution, Production Planning, Human Resource, Sales Force Automation in this survey.
 SAP AG 2000 Executive Overview / 36
Partial List of SAP Customer in Indonesia
Status
 Amoco Mitsui Indonesia
Petrochemical
live (5 months)
 Astra International
Automotive-(holding)
live
 Astra Daihatsu Motor
Automotive
live
 Auto Serasi Raya
Rental Car
live (9 months)
 Bank Bali
Banking
live (7 months)
 BHP Steel
Steel-Sheet
live (5 months)
 Delta DJakarta
Beverage
live (8 months)
 Excelcomindo
GSM-Service
live (6 months)
 Henkel Indonesia
Chemical
live
 Indah Kiat Pulp & Paper
Pulp and paper
live
 Krakatau Steel
Steel Foundry, rod, bar
live
 Garuda Indonesia
Airline
live
 Trypolita
Chemical
live
 Siemens Indonesia
Telecom
live
 United Tractor
Heavy Equipment
live
 SAP AG 2000 Executive Overview / 37
Partial List of SAP Customer in Indonesia
 Star Motors
Automotive
live (5 months)
 Van Melle
Consumer
live (6 months)
 Telekomindo
Telecom services
live
 Asia Pulp and Paper
Pulp and paper
live (4 months)
 Aneka Gas
Utility
live
 PIK Hospital
Hospital
live
 PT Smart Corporation
Agribusiness
live
 BSI, MGTI, Pramindo
Telecom
live
 Conoco, Maxus,Arun
Oil & Gas
live
 PERTAMINA
Oil & Gas
Implementing
 Mayora
Consumer
live
 Metrodata
Electronics
Implementing
 Japfa Comfeed
Poultry
Implementing
 Pelita Air
Airline
Implementing
 Trakindo
Heavy Equipment
Implementing
 Inti Keramika
Building Material
Implementing
 SAP AG 2000 Executive Overview / 38
SAP Consumer Product Customer
630 installations
Food &
Beverages
British American Tobacco
Philip Morris
H.J. Heinz Coy of Canada
Cadbury
Carlsberg
Danone
Guinness
Heineken
Mars
Van Houten
Nestlé
280 other installations
 SAP AG 2000 Executive Overview / 39
150 installations
130 installations
Apparel/
Textile
Adidas
Reebok
110 installations
Consumer
Electronics
Black & Decker
Bose
Braun
JBL Professional
Osram
Pioneer Electronic
Rolex
Samsung
Sony
Personal
Care
Beiersdorf
Cheseborough-Ponds
Colgate-Palmolive
Helene Curtis
Henkel
Johnson & Johnson
Lever
Procter & Gamble
Total installations:
About 1300
Americas
Asia/Pacific
Europe
20%
11%
69%
Selected Customers on Food Industry
Arrocera Covadonga
Amecke-Mönninghof (D)
Alfred Ritter (D)
Astra-Calve
Anheuser-Busch Companies (US)
appetito AG (D)
Bahlsen UK Limited (UK)
Bitburger Brauerei (D)
Borden, Inc.
Boston Beer (US)
British American Tabacco (D)
Cadbury LTD (GB)
Carlsberg A/S (DK)
Cameo S.P.A. (I)
Compass Group USA
Corporacion Cressida
CPC International (USA)
Cultor Food Science, Inc. (USA)
Danone SA/NV (B)
DeKalb Genetics Corporation
 SAP AG 2000 Executive Overview / 40
Dr Oetker, s.r.o. (SK)
Earthgrains Company
Florida Crystals (USA)
Guinness (UK)
Hardenberg'sche Group (D)
Heineken Italia S.P.A. (I)
H.J. Heinz Company of Canada (C)
Keebler Company (USA)
Lacto Ibérica (ES)
Lever AG (CH)
Mövenpick (CH)
Mott's North America (US)
Nestlé (GB)
Philip Morris Europe (CH)
Quaker State
Q.U.F. Industries LTD (AU)
Schweppes, S.A. (E)
TSB (ZA)
Unicer (PT)
Unilever SA (Pty) Ltd (ZA)
Van Houten GmbH & Co. KG (D)
Wrigley GmbH (D)
Selected Customers on Non Food Industry
Adidas-Sarragan France (F)
Bally AG (CH)
Beiersdorf SA/NV (B)
Black & Decker Corporation (USA)
Bosch-Siemens Hausgeräte (D)
Bose Corporation (US)
Braun AG (D)
Cheseborough-Ponds USA (US)
Colgate-Palmolive (US)
Edding AG (D)
Elida Gibbs (I)
Heissner GmbH (D)
Helene Curtis Limited (C)
Henkel (different subsidiaries)
Hoffmann Group (CH)
Fantom Technologies, Inc. (C)
JBL Professional (US)
 SAP AG 2000 Executive Overview / 41
Johnson & Johnson (US)
Lego Sverige AB (S)
Lever Europe
Osram Sylvania Inc (US)
Original Bradford Soap Works, Inc. (USA)
Pacific Coast Feather Company (USA)
Pioneer Electronic Corporation (J)
Procter & Gamble Company (US)
Reebok Russia (R)
Rolex SA (CH)
Samsung (South Korea)
Sony Corporation of HK Ltd (HK)
Villeroy & Boch AG (D)
Wellmann Group(D)
Vileda GmbH
SAP - the company
 SAP AG in 1998 revenues: 8.47 Bill. DEM (5.05 Bill. USD)


Largest dedicated software applications company
Market Leader in Enterprise Applications Software Licenses
(36% market share amongst TOPTEN; IDC, 1999)
 10,000+ customers* in 100+ countries team with us to



Extend their competitive capabilities
Integrate their business processes
Get a better return on information at a lower total cost of ownership
 Focused on users in all enterprises regardless of size



Increased customer satisfaction and stronger customer loyalty
Heavy investment into SAP’s worldwide business community
20,400+ SAP employees (as per March 1999)
 SAP AG 2000 Executive Overview / 42
* 21,500+ R/3 installations and 1,000+ R/2 installations (June ‘99)