SAP Product Strategy Contents l Product Positioning l

SAP Product Strategy Contents: l Product Positioning l Services for SAP partners l Calculation Example ã SAP AG 2003

SAP Strategy: Unit Objectives At the conclusion of this unit, you will be able to: l Describe the solutions offered by SAP in the small and midsize businesses market l State the services offered by SAP to its partners l Describe the price model for the marketing of SAP Business One ã SAP AG 2003

SAP Offers Solutions for Companies of All Sizes SAP Solutions for SMB Large Enterprises my. SAP Business Suite Complete set of business functionality for all requirements ã SAP AG 2003 Midsize Companies / Subsidiaries my. SAP All-In-One Consists of the my. SAP Business Suite tailored to the needs of midsize companies; the software is easy to install, implement, and maintain, and provides a full range of business functions Small Companies / Subsidiaries SAP Business One Can be implemented in a matter of days and provides all the functions you need

SAP Business One Shows Better Usability! ã SAP AG 2003

Some Facts About SAP Business One n Targeted to companies between 10 -250 employees. n Already 1, 300 customers and 150 partners in Europe, Middle East, and the Americas n Available in 14 languages and 12 countries -- by end of 2003, to be available in 22 countries n Leverages SAP’s 30 years of business software leadership n Almost full industry coverage u 3 rd party solutions u Internal practices n Many CEOs are using the system n Many subsidiaries of my. SAP customers ã SAP AG 2003

The Need for Integration Subsidiary my. SAP Business Suite Subsidiary Vendor Subsidiary Headquarter ã SAP AG 2003

Without SAP Business One Situation l IT decisions have to be taken for each branch office Result l No consistent, consolidated view l No integration with the branch offices l High IT costs due to different systems ã SAP AG 2003 Large Corporate Groups using the SAP Business Suite at the Head Office UK SMB Solution 1 Head Office SAP Business Suite Germany SMB Solution 2 US SAP Business Suite Norway SMB Solution 3 Singapore SMB Solution 4

Integration with the SAP Business Suite Data Integration Objective Consolidated reporting structure within an enterprise One view of all subsidiaries Data exchange for cross-enterprise collaboration Participants SAP Business Information Warehouse SAP Enterprise Portal SAP Business Connector SAP Exchange Infrastructure Data and Process Integration ã SAP AG 2003 Head Office + Subsidiaries + Sales Personnel + Vendors

Using SAP Business One Opportunity l IT decisions made easier by purchasing a standard solution from SAP Benefits l Integration with branch offices/subsidiaries l Integration packages for my. SAP Enterprise Portal, SAP Exchange Infrastructure, and SAP Business Information Warehouse (SAP BW) ã SAP AG 2003 Large Corporate Groups using the SAP Business Suite at the Head Office UK SAP Business One Head Office SAP Business Suite Germany SAP Business One US my. SAP All-in-One Norway SAP Business One Singapore SAP Business One

Integration via XI n Up to 40% of all SMBs are subsidiaries of large customers Large Accounts n Facilitates commerce communities between corporations of all sizes n SAP Exchange Technology enables Supply Chain completion Sophisticated SMBs Advanced SMBs Small Businesses ã SAP AG 2003

The World With SAP Business One SAP All-In-One My. SAP. com SAP All-In-One SAP Business One SAP Integration Platform ã SAP AG 2003

Summary: SAP Supports the Global Enterprise Headquarters my. SAP. com Distributor n World’s leading business solution n Full value chain integration my. SAP All-in-One n Full functionality n Pre-configured Factory Sales Subsidiary SAP Business One n Necessary functionality up to 100+ users ã SAP AG 2003 SAP R/3 Enterprise n All core functionalities n Vertical Integration

Services for SMB Partners (1) Partners receive the following services: l Partner/channel manager concept (support/consulting/technical support) l Consulting (support during implementation of the first projects) l Demo system for five users (+ one user for each certified employee Notebook license) l Partner portal for system resellers (for all the relevant information) l High-performance lead-generating activity l Good value production system for SSP (40 % discount for margin) l Sales kit/marketing basic equipment l Reference materials (white papers, customer success stories etc. ) ã SAP AG 2003

Services for SMB Partners (2) Opportunity of participating in further training courses n 40 training days (sales and marketing, technology, implementation, technical support) n E-learning maps (on the Service Marketplace) n Participation in Web. Ex sessions (current topics and products, sales, implementation and so on) n On-site seminars and e-learning units for the Software Development Kit (SDK) In addition, you also profit from the following: n An SAP marketing campaign with the target group SMB n Quantity discount and sales commission n Second level support for 10% of the license price per year ã SAP AG 2003

Support Services Trouble-shooting during installation, implementation, operation n Partner portal l Support platform l Knowledge database (currently approx. 600 problems plus solutions) l Document-based database (under construction) n Hotline – 5 days/8 hours (country-dependent, for customer emergencies) n Hotline – 7 days/24 hours (for absolute emergencies, telephone number of duty manager in the partner portal) n Support partner forum (conference call, every last Friday in the month) n Project support "remote save guarding" – request by partner (difficult, problematic project, name of employee assigned to the project) ã SAP AG 2003

Price Model €K Structure of EMEA Price List Pricing is based on defined users. • The simplest price is ensured; low presales costs. Pricing starts at € 2, 500 per user and at least € 5, 000. SAP offers a discount scheme based on the volume of licenses sold. SAP charges 10% of the license costs for maintenance and support. • The final price for maintenance and support is negotiated between the partner and the customer (recommended 20%). SAP Business One list price Reseller retains profit from this margin SAP commission based on this price SAP Business One discount scheme User Two main advantages of this price scheme: • System resellers with an especially high turnover are rewarded. • The necessary flexibility for regional price lists is ensured. ã SAP AG 2003

SAP Business One – Calculation Examples Payment Customer to Partner 10 SBO-User x € 2, 500 Plus CRM (for Calculation of Database Price) = SAP Application Value (SAV) Plus 7. 5% as Price for Database + Minus CRM - Minus 20% Volume Discount Payment Customer to Partner Plus CRM (for Calculation of Maintenance) Basis for Maintenance - Payment Partner to SAP Price for Database Minus 20% Volume Discount Payment Partner to SAP (database) Standard Net License Value – w/o CRM Minus 40% Partner Discount Payment Partner to SAP (SBO) Payment Partner to SAP (database) Payment Partner to SAP (SBO) Payment Partner to SAP (Total) ã SAP AG 2003 + + € 25, 000 € 2, 500 € 27, 500 € 2, 063 € 29, 563 € 2, 500 € 27, 063 € 5, 413 € 21, 650 € 2, 500 € 24, 150 - € 2, 063 € 413 € 1, 650 - € 20, 000 € 8, 000 € 12, 000 € 1, 650 € 12, 000 € 13, 650

Further Information è Public Web: www. sap. com/smb è SAPNet: Use ALIAS: ‚SMB‘ è Service Marketplace service. sap. com/smb ã SAP AG 2003

SAP Product Strategy: Unit Summary You are now able to: l Describe the solutions offered by SAP in the small and midsize businesses market l State the services offered by SAP to its partners l Describe the price model for the marketing of SAP Business One ã SAP AG 2003