Hosted by SAP 2003 Your Technology and Business

Hosted by SAP 2003: Your Technology and Business Roadmap Jim Shepherd Senior Vice President AMR Research

Hosted by Agenda l SAP’s Business Strategy l SAP’s Product Strategy l SAP’s Technology Direction l What Should You Worry About ? l Maximizing The Value of Your SAP Investment

Hosted by SAP Snapshot l 7. 4 B € in FY 02 Revenues • 56% from Maintenance and Services l FY 03 Expectation: Flat Revenue, Improved Profits l 19, 300 Customers l 50, 000+ Installations – 120+ Countries l 23 Industry Solutions

Hosted by SAP’s Business Strategy l Account Control- “The Reliable Business Partner” l Growth – “Influence Greater Share of IT Spending” l Customer Lifecycle Management “ROI -SAP Delivers Value l Services, Maintenance, & Add-ons l New Markets and Channels “We don’t want to be just the safe haven– Consider us your trusted innovator” Henning Kagermann – Sapphire 2003

Hosted by CIO Issue Today 3 years from now 10% 30% 40% INNOVATION 20 -25% CONSOLIDATION 35 -40% OPERATION 60% Source: SAP AG

Hosted by SAP Business Strategy: Become Your “Trusted Partner” Strategic Consulting Discover & Evaluate -> Implement -> Operate Business Consulting Business Software System Integration System Support Infrastructure Consulting Infrastr. Software System Integration Infrastructure Support Hardware OS, DB, . . . System Integration* Technical Support Outsourcing Application Layer Middleware Layer IT Layer Source: SAP AG

Hosted by SAP Business Strategy: “Extended Range of Services” l New Maintenance Offerings l Architecture Planning l Custom Development l Consulting l System Integration l Operations Planning & Optimization l Hosting / Outsourcing

Hosted by SAP Business Strategy: New Markets and Channels SAP Direct Sales Vertical Resellers Business One Centers Sales/Service Partners Source: SAP AG

Hosted by SAP Product Strategy: All Things For All Buyers SAP for <Industry> n SAP for Aerospace & Defense n SAP for Oil & Gas n. . . SAP Packaged Solutions n Service Management for <Industry> n. . . n Financial Insights for <Industry> SAP x. Apps my. SAP Business Suite n SAP x. App Resource & Program Management n my. SAP ERP n SAP x. App Mergers & Acquisitions n my. SAP SCM n. . . n my. SAP CRM SAP Smart Business Solutions n my. SAP -in-One All n. . . n SAP Business One SAP Net. Weaver n SAP Enterprise Portal n SAP Master Data Mgmt. n SAP Business Intelligence n SAP Exchange Infrastructure n SAP Mobile Business n SAP Web AS Source: SAP AG

Hosted by SAP Vertical Market Penetration: SAP Customers Within Fortune 500 source: Fortune 500 2002; SAP Analysis Source: SAP AG

Hosted by Current Application Strategy l The Ever Expanding my. SAP Business Suite l R/3 Enterprise or My. SAP ERP ? l Scalability : All-in-One and Business One l The x. Apps (Cross-Applications) Framework

Hosted by The Ever Expanding my. Sap Business Suite Extranet Internet COLLABORATION Comprehensive e-Business Solutions Portals Advanced Supply Chain Planning Customer Relationship Mgmt Intranet Supply Chain Hubs Business Warehousing R/3 Accounting R/3 Logistics R/3 Fulfillment R/3 HR. . . ENTERPRISE Marketplaces Enterprise Group B 2 B Procurement Strategic Enterprise Management Knowledge Warehouse Industry-Add-ons Collaborative Engineering E-Recruiting Electronic Bill Presentment & Payment Collaborative Forecasting Business Partners World Source: SAP AG

Hosted by SAP Product Strategy: Scalability Headquarters Distributor SAP All-in-One my. SAP. com Exchange Infrastructure Sales Subsidiary Factory SAP R/3 Enterprise SAP Business One Source: SAP AG

Hosted by SAP Product Strategy: x. Apps are Packaged Composite Applications. They deliver new end-to-end business processes, that snap-on to an existing IT environment. Start out as separate next practices but migrate to suite-based best practices x. App New, snap on cross-functional business process Existing applications and data sources Source: SAP AG

Hosted by Announced x. Apps Business Views, Events (Context & Insight) SAP x. App Resource and Program Mgmt SAP x. App Mergers and Acquisitions SAP x. App Employee Productivity SAP x. App Product Definition Desktop/ Office Support HR Financials PLM SRM SCM CRM Legacy Functional Transactions (Hindsight) Source: SAP AG

Hosted by R/3 Enterprise SAP R/3 Enterprise Extension For SCM SAP R/3 Enterprise Extension For FIN SAP R/3 Enterprise Extension For HR SAP R/3 Enterprise Extension For Travel SAP R/3 Enterprise Extension For PLM SAP R/3 Enterprise Core 4. 7 All Existing R/3 Functionality Future Changes limited to: • Legal Changes • Defect Fixes • Performance Enhancements SAP Web Application Server 6. 20 Replaces Basis Server Provides J 2 EE and ABAP Support Common Foundation for all my. SAP. com Components

Hosted by R/3 Enterprise Rollout Internal Customer Release Restricted Shipments 7/02 Unrestricted Shipments 12/02 l New “Ramp-up” Release Process l ~200 Customers in Controlled Release Phase l 1000’s of Copies Shipped Since January l Reports From Customers Are Very Positive

Hosted by my. SAP Business Suite my. SAP PLM Purchase Order Management my. SAP SRM my. SAP ERP Financials Human Resources Corporate Services Operations Sales Order & Delivery Management Maintenance & Quality my. SAP CRM Inventory & Production my. SAP SCM SAP NETWEAVER Source: SAP AG

Hosted by my. SAP ERP Analytics Strategic Enterprise Management Financial Analytics Financial Accounting Human Resources Employee Relationship Management Operations Management Corporate Services SAP Net. Weaver Purchase Order Inventory Management Corporate Real Estate Management Workforce Analytics Management Accounting Employee Lifecycle Management Production Manageme nt Maintenan ce & Quality Travel Management Operations Analytics Financial Supply Chain Management Employee Transaction Management Delivery Sales Order Manageme nt nt Incentive & Commissions Management People Integration Information Integration. Process Integration Application Platform Source: SAP AG

Hosted by SAP Migration Strategy 1 my. SAP Business Suite n Customer can buy and deploy my. SAP Business Suite SAP Net. Weaver my. SAP ERP 2 my. SAP ERP n Customer can buy and deploy my. SAP ERP 3 Combining my. SAP ERP & Solutions n Customer can combine my. SAP ERP with my. SAP Solutions 4 Combining R/3 E & Parts n Customer can combine existing R/3 Installations with Solutions, SAP Net. Weaver (also parts of it like e. g. Portal or BI) and with Quickstep packages SAP Net. Weaver my. SAP ERP + + + my. SAP SCM + my. SAP CRM SAP + Net. Weaver + R/3 Enterprise Quickstep Packages + my. SAP SCM + my. SAP CRM + SAP Net. Weaver + Quickstep Packages

Hosted by SAP Net. Weaver l. Neutral positioning toward IBM Web. Sphere and Microsoft. NET Multi-Channel Access Portal Collaboration Information Integration Business Intelligence Knowledge Management Master Data Management Process Integration Broker Business Process Management Application Platform J 2 EE Web. Sphere Life Cycle Management l. Centralized collection of SAP technologies • Application Servers • UI Management • Integration Framework • Security • Business Process Mgmnt • Data Warehousing • Portal Framework • Etc. People Integration Composite Application Framework l New technology foundation of My. SAP products SAP Net. Weaver™ . NET … ABAP and. OS OS Abstraction DBDBand Source: SAP AG

Hosted by What Should You Be Worrying About ? l Instance Consolidation l New my. SAP. com Functionality • PLM, APO, Portals, CRM, etc. l Release Strategy & Expectations • R/3 Enterprise, My. SAP ERP, My. SAP Business Suite ? l Extended Deployment • Internally • Externally

Hosted by Maximizing Your SAP Investment l Competency Center -- Business Process Improvement Not A Help Desk! l Continuous Training & Education l Enterprise Performance Management (EPM) l Network Theory -- A system becomes more valuable as it touches more users l Any ERP System Needs Better Public Relations