Dr. Ferri Abolhassan Executive Vice President SAP EMEA

1. Innovation and Change
At the Speed of Your Business
Executive Summit
Villa d´Este
Dr. Ferri Abolhassan
Executive Vice President
SAP EMEA

2. Agenda and Executive Summary
 Powerful Trends Force Change
 Business Network Transformation is a
Reaction to Change
 The SAP and Business Objects
Platform
 Benefits from the SAP Business
Process Platform
 Value Creation with SAP Value
Engineering
 SAP´s Holistic Way Forward
© SAP 2007 / Page 2

3. Powerful & Global Trends are Changing our
Businesses…
intensified
empowered COMPETITION increased
WORKFORCE RISK
powerful disruptive
CUSTOMERS TECHNOLOGIES
 Globalization
 Information  New entrants
workers  New business  Compliance
 24/7 operations models imperative
 Increased …  …  Market volatility  Connectivity
transparency  …  Digitization
 Abundance of supply
/ choice  …
 …
These trends are affecting companies of all industries
and all sizes
- large, midsize and small -

4. …and the Speed of Change is Increasing…
US patent office receives an application
 every 2 minutes
New consumer product launched
 every 4 minutes
$1 million of e-commerce
 every 6 minutes
M&A transaction
 every 16 minutes
$1 billion in global trade
 every 1 hour

5. …the Impact of these Trends and the Speed of
Change is Transforming Business…
From “build to last”… …To “build to adapt”
Consolidation & efficiency Agility & innovation
Command & control Connect & collaborate
Internal R&D Co-Innovation
Uniformity Diversity
 Network-Readiness and Ongoing Portfolio Optimization
© SAP 2007 / 5

6. …Transformation of the Business Network has
become a Key Differentiator…
The Business Network has become a primary source of new differentiation
Network of
Brains
Network of
Businesses
Network of
Resources
© SAP 2008 / Page 6

7. ...so how might we think about Business
Network Transformation...?
From a Business Process and IT Perspective:
 Transform your Business Network and align with your Strategy and Vision
 Establish your Core Processes e.g. customer retention, billing, production
 Establish a trusted partner network / ecosystem based on your company values
 Introduce leading edge innovative processes and convenience services e.g.
outsourced processes like billing, HR or crossgate
 Connect social networks & processes to built long-term relationships
 Establish an (IT) Platform that supports all activities
© SAP 2008 / Page 7

8. …SAP is driving to support Business network
transformation…
Customers don’t want a product, they want to get a job done
With SAP, companies are ready for:
 Innovation
at the speed of each business
 Transformation
from built-to-last enterprises to
built-to-adapt business networks
 Performance optimization
closed loop from strategy to
execution and back again
HOW: Business Process & Business Intelligence Platform

9. Business Performance Optimization
Closed-Loop: The SAP & Business Objects Platform
Strategy
SAP Business Objects Portfolio
Performance Optimization Applications
Insight Decisions
Business Intelligence Platform
Business Users
Events
SAP Business Suite
Process change Monitoring
Business Process Platform
Task
Workers
Execution

10. SAP Business Process Platform
How does this work for you?
SAP Business Objects Portfolio
Performance Optimization Applications
Business Intelligence Platform
© SAP 2008 /KN_primondo.ppt / Schumann
2008/ Page 10

11. SAP Business Process Platform
Benefits for the CxO
Benefits for the CFO Benetfits for the CEO
SAP Business Objects Portfolio
Performance Optimization Applications
Business Intelligence Platform
Benefits for the CIO Benefits for the COO
© SAP 2008 / Page 11

12. The SAP Business Process Platform
Benefits for the CEO
Benefits for the CEO
 Fast Integration of M&A Activities
SAP Business Objects Portfolio
 Transparency and Performance
Performance Optimization Applications
Optimization
 EndBusiness Intelligence Platform through true
to End Coverage
Business Process Management
© SAP 2008 /KN_primondo.ppt / Schumann
2008/ Page 12

13. Demo
SAP Business Objects

14. SAP Business Process Platform
Benefits for the COO
SAP Business Objects Portfolio
Performance Optimization Applications
Business Intelligence Platform
Benefits for the COO
 Easy to use products for customer
support
 Fast enablement of employees
 Full Support of open Standards
© SAP 2008 / Page 14

15. For the Office of the COO
SAP CRM 2007
© SAP 2007 / 15

16. SAP Business Process Platform
Benefits for the CFO
Benefits for the CFO
 Easy Planning Reporting and
SAP Business Objects Portfolio
Consolidation
Performance Optimization Applications
 Full Support of Governance, Risk
Management and Compliance Business Intelligence Platform
 Fast Integration of new
Businesses
© SAP 2008 /KN_primondo.ppt / Schumann
2008/ Page 16

17. For the Office of the CFO
Demo
SAP Business Planning and Consolidation
© SAP 2007 / 17

18. SAP Business Process Platform
Benefits for the CIO
SAP Business Objects Portfolio
Performance Optimization Applications
Business Intelligence Platform
Benefits for the CIO
 Predefined Enterprise Services
 DB/OS Independency
 End-2-End Support / Security
 Full Support of open Standards
 Integration of heterogeneous
applications
© SAP 2008 / Page 18

19. SAP Business Process Platform
Benefits for the CxO
Benefits for the CFO Benetfits for the CEO
 Easy Planning Reporting and  Fast Integration of M&A Activities
SAP Business Objects Portfolio
Consolidation  Transparency and Performance
Performance Optimization Applications
 Full Support of Governance, Risk Optimization
Management and Compliance  EndBusiness Intelligence Platform through true
to End Coverage
 Fast Integration of new Businesses Business Process Management
Benefits for the CIO Benefits for the COO
 Predefined Enterprise Services  Easy to use products for customer
 DB/OS Independency support
 End-2-End Support / Security  Fast enablement of employees
 Full Support of open Standards  Full Support of open Standards
 Integration of heterogeneous
applications
© SAP 2008 / Page 19

20. To identify Value and Benefits, we make use
of SAP´s Value Engineering …
Situation
 Publishing Company reshaping its IT landscape
 Upgrade of current SAP ERP-system investigated
 Develop business case to show the value and benefit of a
new ERP solution and platform
Challenges
 Assess solution from functional and business value
perspective
 Gain the acceptance for IT from business by outlining the
business value and functional coverage of SAP Solution
Approach
 Compile a quantitative business case and qualitative
argumentation of the value that could be created though
upgrade an Plaform Implementation
 Align business processes to best-practice
 Design an implementation roadmap based on fast value
realization, optimal use of applications and legacy
investments

21. … to identify quantitative Benefits for Core
Business Areas over a 4 years period
“Best Case” estimate*
Value Potential (over 4 yrs)
“Real Case” estimate*
$40.5M $32.9M $25.2M “Worst Case” estimate*
$0.8M $24.5M $11.0M
Procurement & Order-to-Cash
$0.6M Financials $19.8M $8.4M
Logistics $0.4M $15.0M
(focus: CRM)** $5.8M
 Reduction of Logistics process costs due to  Reduction of bad debt due to improved credit  Increased Backlist Sales due to better
enhanced productivity and usability management and controls information regarding customer history
  Improved credit, dispute and collections  Increased revenues across all Sales channels
Reduction of inventory due to a more inte-
grated & streamlined process (e.g. demand- management efficiency due to more time available to sell (e.g. 360
 Reduced DSO / Accounts Receivables due to degree view of customer on one screen,
driven synchronization of supply to demand,
better tracking and visibility of inventory) improved dispute & collections management including all customer interactions)
 Reduced billing processing costs  Reduction of execution time of sales calls
$3.5M $0.7M
IT Benefits $3.5M Analytics $0.6M
$3.5M $0.5M
 Reduced application costs of legacy systems  Improved user productivity regarding reporting
(SalesDW, EIS, ROS, Returns System) due to time savings in process execution
 Reduced effort regarding system integration (focus: Key user in the area of reporting)
(e.g. reduction of EDI integration effort
concerning client/vendor systems)
 Reduced maintenance and development effort
due to SAP ERP system standardization
 Avoidance of extended SAP maintenance fee
The value potential estimation can be considered as rather conservative
© SAP 2007 / Page 21

22. Connect our Core Values and SAP's Directions
for your Benefit
SERVICES
1 More functionality
 SAP Business Suite, industries
and Business Objects
5 3
2 Open business process platform
PRODUCTIVITY
ENGINEERING
 Middleware for SOA
PERSONAL
+ implemented enterprise services
1 4
ENTERPRISE 3 For companies of all sizes
APPLICATION  Extended product portfolio
SOFTWARE
2
4 For employees in all roles
INFRASTRUCTURE  Business user and Information Worker
5 With the best customer-focused ecosystem and innovative services
© SAP 2007 / 22

23. Innovation and Change
At the Speed of Your Business
Executive Summit
Villa d´Este
Dr. Ferri Abolhassan
Executive Vice President
SAP EMEA