Systemanalyse und Programmentwicklung SAP Case Study Stephanie Enciso

Systemanalyse und Programmentwicklung SAP Case Study Stephanie Enciso Eugene Krick III Albert Mora David Rugwe Jessica Sweet

History � ◦ Former IBM engineers ◦ Weinheim and Mannheim in Germany ◦ Vision: to develop standard application software for real-time data processing � ◦ First financial accounting system completed (R/1) � ◦ R/2 was developed to link external databases and communication systems

History cont. � ◦ IPO in Germany � ◦ IPO in USA on NYSE � ◦ R/3 released which was a client-server ERP � ◦ my. SAP. com allows employees, customers, suppliers, and other business partners to work together from anywhere � ◦ Netweaver’s first release

History Cont. � ◦ SAP begins work with Microsoft ◦ 1996 - internet strategy with Microsoft introduced � ◦ Dell’s unsuccessful SAP implementation ◦ Magic word used by Dell CIO about problem? Monolithic � ◦ Dell begins piecing together an ERP system � ◦ Nestle… Success? � 6 years and $210 million • 29 prices for vanilla from the same vendor

ERP Market Downfall � ◦ SAP’s ERP implementation failure rate over 50% ◦ SAP along with others failed to immediately see the internet as an important tool � ◦ Acquired Top Tier Software ◦ Dotcom bubble crash �Small companies fail �Stability of SAP �Invested in my. SAP

After Dotcom Crash � �

SOA and Web Services � � ◦ Service Oriented Architecture �“Well-defined business functions as a service” �Allows systems to be connected through web services ◦ Web services �Standardized way of applications using the XML, SOAP, WSDL and UDDI over an Internet protocol backbone.

Not just ERPs � ◦ Customer Relationship Management (CRM) �Maximizing customer satisfaction, and strategic decision making ◦ Product Lifecycle Management (PLM) �Supports product related processes ◦ Supplier Relationship Management(SRM) �Anticipate and reduce procurement costs ◦ Supply Chain Management (SCM) �Improving the way your company finds the raw components it needs to make a product or service and deliver it to customers

SAP Products � ◦ Mid-sized businesses ◦ Includes a package of applications : � ERP, CRM, SRM, BI, ect. ◦ Purpose: �Drive business growth, Build and maintain operational excellence, Optimize financial performance, and Connect partners within the headquarters. � ◦ Small-sized businesses ◦ Product contains applications such as: �Integrated financial management, CRM, BI, and Warehouse and Production management

Pay-As-You-Go Services � ◦ Allowed small and mid-sized businesses the opportunity to use “world-class applications” � ◦ customer outsourced their hardware but purchased licenses from software vendors � ◦ Outsource both hardware and software to a third party, paying for the hardware and service on a need basis �EX: used by my. SAP All-in-One, Siebel, and Sales. Force. com inc.

Net. Weaver

Net. Weaver � ◦ ◦ ◦ ◦ ◦ Application Server Business Warehouse Master Data Management Process Orchestration Portal SAP Auto-ID Infrastructure Business Intelligence Exchange Infrastructure (XI) Information Lifecycle Management ◦ ◦ ◦ Adaptive Computing Controller Composition Environment Developer Studio Visual Composer SAP Solution Manager � � ◦ Enterprise Search ◦ Single Sign-On

Competitors In addition to SAP, which other wellestablished enterprise applications and software makers were focusing on the same market segments?

Oracle � � � ◦ ◦ � Retek People. Soft JD Edwards Siebel

Microsoft � � ◦ ◦ ◦ � Great Plains Software Navision Groove Networks Sybari Software Frontbridge Technologies.

IBM � � ◦ Gluecode Software ◦ Pure. Edge Solutions ◦ Ascential Software

Middleware Market 2010

Strategy and Focus ◦ Only one code base to develop and manage ◦ Every enhancement is available to all market sectors ◦ Produce and improve products that make them more directly applicable to key verticals ◦ Collaborate with an ecosystem of solution developers, partners, and customers in order to provide a “complete solution” to customers

SAP’s Ecosystem “Social Network” � ◦ Facilitates customer interaction in a "safe" environment to connect, learn, share and in general expand grow peer and professional networks � ◦ Co-innovation ◦ Value-management ◦ Collaboration � ◦ ◦ ◦ 183, 000 customers More than 11, 000 partners Over 1, 200 SAP solutions and over 600 partner solutions 199 subsidiaries In 2011, more than 1. 3 million corporate and individual members

The “Complete Solution”

Battle Between SAP and Oracle Acquisitions � ◦ Third party software maintenance firm that supported products from People. Soft ◦ Counter-move to Oracle’s recent acquisition of People. Soft ◦ Would attempt to get customers to switch from People. Soft to SAP applications � ◦ Partly successful because of the confusion behind numerous Oracle acquisitions ◦ More than 200 companies migrated ◦ TN/SAP guilty of copyright infringement by stealing materials and support off of Oracle’s customer website

Business Intelligence (BI) Adopting New Technology � ◦ World’s leading BI software company ◦ Combined customer base and market share placed SAP as the leader of BI since 2007 � ◦ Processes all transactions in memory instead of I/O to storage disks ◦ Processes millions of lines of data in microseconds ◦ Reduces hardware and maintenance costs

ERP Vendors (2009 -2010) Market Share 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2009 2010 SAP Oracle Microsoft Other ◦ SAP 24% - Oracle 18% - Microsoft 11% - Other 47% (2010) ◦ 7% decrease from 2009 ◦ All three main vendors declined in ERP sector

Market Share % (2010) ERP – BI sectors 30% 25% 20% 15% ERP BI 10% 5% 0% SAP Oracle Microsoft IBM ◦ SAP leader in ERP and BI in 2010 ◦ SAP 23% - Oracle 16% - IBM 12% - Microsoft 9% (2010) ◦ Slight increase from 2009

SAP Revenue and Net Income 2006 – 2011 (in Billions) 25 20 15 10 5 0 19. 06 16. 1 15 16. 7 15. 3 12. 4 5. 093 2. 47 2006 2. 8 2007 2. 6 2008 Revenue 2. 56 2009 2. 43 2010 2011 Net Income ◦ Very good year for SAP in 2011 ◦ Revenue up $6. 7 Billion and net income up $2. 6 Billion since 2006

SAP – Oracle – Microsoft – IBM Growth Rate % (2010 to 2011) 120. 00% 100. 00% 80. 00% Revenue 60. 00% Net Income 40. 00% Market Cap 20. 00% SAP ORCL MSFT IBM -20. 00% ◦ Very significant increase in growth rate percentage (net income) in 2011 compared to other top tier vendors ◦ Increase revenue by 14%, net income by 110%, market capitalization by 42%

SAP and Business. By. Design � ◦ Supports � Business intelligence � Analytics � In-memory-technology � ◦ In-memory analytics and bi-directional Microsoft Excel integration ◦ Mobile device support ◦ A user interface that incorporates Microsoft’s Silverlight technology on the desktop. Silverlight also makes a tighter connection to Office ◦ Single and multi-tenancy support

SAP in the world of Mobile Business � � ◦ Go mobile to make your business run faster or smoother � ◦ Netweaver mobile 7. 1 (earlier version) ◦ Sybase Unwired platform

Netweaver Mobile 7. 1 Used by IT Organizations to extend applications, data and process to mobile workers not connected to company network � ◦ Over the air device management ◦ Application design tools ◦ Synchronization middleware which allows mobile devices to interoperate as part of company business process

Sybase Business Strategy

Sybase Unwired Platform Sybase Unwired can be categorized as a mobile enterprise application platform provided by SYBASE that extends the backend systems to the front end mobile devices. ◦ Motorola MC 75 � Complex applications � Supported by windows operating system � High amount of data flowing in and out of device � Used by field technicians and customer service reps � Uses Netweaver mobile � ◦ Blackberry, i. Phone � Run on thin clients � One to two screens and minimum amount of data flows around � Designed to use Sybase unwired Platform

Sybase Unwired Platform cont. � ◦ ◦ Business Application Programming Interface (BAPI) brings data from the backend applications to the Netweaver middleware. Data is then flown into the mobile device by the help of the distribution logic feature of the Netweaver 7. 1

Sybase Unwired Platform cont.

The End

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