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					mySAP ERP for High Tech
Industry Business Unit
High Tech
mySAP ERP
for High Tech


                Overview

                1. Challenges and Strategies in the High Tech Industry

                2. mySAP ERP

                3. mySAP ERP for High Tech

                4. SAP Best Practices for High Tech

                5. Delta SAP R/3 => SAP ERP => SAP Business Suite

                6. Transition to mySAP ERP

                7. Summary
mySAP ERP
for High Tech




                1. Challenges and Strategies in the High Tech Industry

                2. mySAP ERP

                3. mySAP ERP for High Tech

                4. SAP Best Practices for High Tech

                5. Delta SAP R/3 => SAP ERP => SAP Business Suite

                6. Transition to mySAP ERP

                7. Summary
     High Tech Industry Trends

                                                   Shrinking product lifecycles
                                                      Product innovation key to success (e.g. Apple)
                                                      New regulations for environmental compliance
                                                       (e.g. RoHS/WEEE)
                                                      Time-to-volume as important as time-to-market

Service management                                                                                         Increased global
complexity (and revenue                                                                                    competition and
potential) increases                                                                                       customer demands for
   Convergence of hardware,                                    These forces result in:                    product specialization
    software, and services                                                                                    Poor forecast accuracy
   Customers spend 5-10                                      Diminished Growth Potential
                                                                                                              High sales and marketing
    times on service than on                                                                                   costs due to manual
    the initial product                                       Reduced Operating Efficiency                     availability-to-promise
    purchase                                                                                                   processes
   The majority of companies                                                                                 Multiple order
    with service businesses                                                                                    management systems
    make more money on add-
    on products and services                                                                                  Inability to effectively
    than on the original sale                                                                                  leverage sales channels

                                                   Continued increase of outsourcing & off-
                                                   shoring
                                                      High degree of manufacturing outsourcing globally
                                                      Many products produced both in-house and
                                                       outsourced
                                                      Continued disintegration of the value chain, e.g.
                                                       EMS increasing services offered
     SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 4
 High Tech Manufacturing – Opportunity Areas

         Relative business priorities for High Tech Manufacturers
         [On a scale of 0 to 5]


         Reduce Mfg. costs

         Improve sales & mktg.
         effectiveness

         More effectively manage
         inventory

         Reduce order-to-delivery
         time

         Introduce new products
         faster

         Improve demand
         forecasting

         Improve post-sales
         operations
                                                    0         1          2        3         4            5

                                                      Source: IDC High Tech Manufacturing Survey, 2003




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 5
 Innovation is the Key Driver of Revenue

                                                                                      Examples of Companies
               Revenue Contribution From Products                                     that have Excelled
               Launched in the Last Year                                              through Innovation
               ($M)                                                      25%             Apple Computers has come back
                                                                                          from the brink of irrelevance with
                                                                                          many blockbuster products such
                                                          15%                             as iPod, iTunes and G5
                                           10%                                           Juniper Networks has
                                                                                          consistently been first to market
                                                                                          with higher end routers to
                                                                                          challenge Cisco’s dominance in
         Key Performance                         Bottom     Median              Top       routers
         Indicators                               25%                           25%
                                                                                         AMD was first to market with a
           Time to Market                                                                64-bit microprocessor, allowing it
                                                    258         150              60       to break into the lucrative
            (Days)
           Products Launched                                                             corporate market in 2003/04
                                                    50%         75%             90%
            on Budget (%)                                                                Nearly 25% of IBM’s profits in
           Products Launched                                                             Year 2000 came from
                                                    30%         60%             86%
            on Time (%)                                                                   commercialization of its IP
           % R&D Cost for                                                                portfolio
                                                     3%         25%             50%
            New Projects

              Source: Industry Week, “Ties that Bind”, David Drickhamer, Jan. 2004



 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 6
 Leveraging Sales Channels is more important



  By 2010 65% of the revenue of Global 2000 enterprises
    will be driven by indirect demand-network partners1



  In the High Tech industry, indirect sales partners
    represent ~ 70% of the total sales revenue1


  Some High Tech companies even move towards a
    total indirect sales model. Cisco is currently at 82%
    and plans to move to 100%


                  Along with the rising importance of indirect sales
                  channels comes the need to manage them effectively

 Source : Gartner Research, 2004
 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 7
 Opportunity to improve Supply Chain Efficiencies

Total Inventory Turns                                                               Total Asset Turns
(COGS/Average Total Inventory)                                                      (COGS/Average Total Assets)
                                                                   Upper Quartile       Median


                                                                                         Consumer
       Automotive
                                                                                         Durables


        Consumer
                                                                                        Automotive
        Durables


        High Tech                                                                        Aerospace


     Industrial                                                                        Industrial
    Equipment &                                                                       Equipment &
     Machinery                                                                         Machinery


       Aerospace                                                                         High Tech


   Pharma, Bio-                                                                       Pharma, Bio-
  tech & Medical                                                                     tech & Medical
     Devices                                                                            Devices

                     0.0        5.0       10.0       15.0   20.0      25.0                            0.0   1.0   2.0   3.0   4.0   5.0   6.0



                       High Tech could learn from other industries to improve turns


Source: Industry Week, “IW/MPI Census of Manufacturers”, Jan. 2004
 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 8
 Make Profit with Service
                                                                        However:

               Customers spend 5-10 times on                            Companies spend 60% less on IT
                service than on the initial product                       to support service than they do
                purchase                                                  on sales, marketing, engineering,
                                                                          and product management
               The majority of companies with
                service businesses make more                             Most companies still view their
                money on add-on products and                              service business as a cost center
                services than on the original
                product



                                                          76%   80%                55%


                                                                                                         Product


                                                                                                         Services
                                                          24%   20%                45%
                                                  Corporate       IT         Corporate
                                                  Revenue       Spend          Profit       Source : AMR Research, 2004


 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 9
 High Tech Eco System – OEM




                                                             OEM
                                                             Original
                                                            Equipment
                                                           Manufacturer




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 10
 High Tech Eco System – EMS Provider



                                                              EMS
                                                             Electronic
                                                            Manufacturing
                                                           Service Provider




                                                              OEM
                                                              Original
                                                             Equipment
                                                            Manufacturer




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 11
 High Tech Eco System – ODM



                                                                EMS
                                                               Electronic
                                                              Manufacturing
                                                             Service Provider




                                                                OEM
                                                                Original
                                                               Equipment
                                                              Manufacturer




                                               ODM
                                           Original Design
                                           Manufacturer




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 12
 High Tech Eco System – CM



                                                 CM             EMS
                                                               Electronic
                                            Component
                                                              Manufacturing
                                            Manufacturer     Service Provider




                                                                OEM
                                                                Original
                                                               Equipment
                                                              Manufacturer




                                               ODM
                                           Original Design
                                           Manufacturer




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 13
 High Tech Eco System – IDM



                                                 CM             EMS
                                                               Electronic
                                            Component
                                                              Manufacturing
                                            Manufacturer     Service Provider




                        IDM                                     OEM
                     Integrated                                 Original
                       Device                                  Equipment
                    Manufacturer                              Manufacturer




                                               ODM
                                           Original Design
                                           Manufacturer




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 14
 High Tech Eco System – Fabless Semiconductor



                                                 CM             EMS
                                                               Electronic
                                            Component
                                                              Manufacturing
                                            Manufacturer     Service Provider
           Fabless




                        IDM                                     OEM
                     Integrated                                 Original
                       Device                                  Equipment
                    Manufacturer                              Manufacturer




                                               ODM
                                           Original Design
                                           Manufacturer




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 15
 High Tech Eco System – Foundry



          Foundry                                CM             EMS
                                                               Electronic
                                            Component
                                                              Manufacturing
                                            Manufacturer     Service Provider
           Fabless




                        IDM                                     OEM
                     Integrated                                 Original
                       Device                                  Equipment
                    Manufacturer                              Manufacturer




                                               ODM
                                           Original Design
                                           Manufacturer




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 16
 High Tech Eco System – Software



          Foundry                                CM             EMS
                                                               Electronic
                                            Component
                                                              Manufacturing
                                            Manufacturer     Service Provider
           Fabless




                        IDM                                     OEM
                     Integrated                                 Original
                       Device                                  Equipment
                    Manufacturer                              Manufacturer




                                               ODM            Software
                                           Original Design
                                           Manufacturer
                                                              Provider




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 17
 High Tech Eco System – 3PL



          Foundry                                CM             EMS             3PL
                                                               Electronic       3rd Party
                                            Component
                                                              Manufacturing     Logistics
                                            Manufacturer     Service Provider   Provider
           Fabless




                        IDM                                     OEM
                     Integrated                                 Original
                       Device                                  Equipment
                    Manufacturer                              Manufacturer




                                               ODM            Software
                                           Original Design
                                           Manufacturer
                                                              Provider




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 18
 High Tech Eco System – Distributor



          Foundry                                CM             EMS                3PL
                                                               Electronic         3rd Party
                                            Component
                                                              Manufacturing       Logistics
                                            Manufacturer     Service Provider     Provider
           Fabless




                        IDM                                     OEM
                     Integrated                                 Original
                       Device                                  Equipment
                    Manufacturer                              Manufacturer




                                               ODM            Software          Distributor/
                                           Original Design
                                                              Provider           Reseller
                                           Manufacturer




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 19
 High Tech Eco System – Consumer



          Foundry                                CM             EMS                3PL
                                                               Electronic         3rd Party
                                            Component
                                                              Manufacturing       Logistics
                                            Manufacturer     Service Provider     Provider
           Fabless




                        IDM                                     OEM                               End
                     Integrated                                 Original
                       Device                                  Equipment                       Customer
                    Manufacturer                              Manufacturer




                                               ODM            Software          Distributor/
                                           Original Design
                                                              Provider           Reseller
                                           Manufacturer




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 20
mySAP ERP
for High Tech




                1. Challenges and Strategies in the High Tech Industry

                2. mySAP ERP

                3. mySAP ERP for High Tech

                4. SAP Best Practices for High Tech

                5. Delta SAP R/3 => SAP ERP => SAP Business Suite

                6. Transition to mySAP ERP

                7. Summary
 ERP Evolution – SAP R/2
            1980‟s                                         1990‟s   2000‟s   2005




             R/2




    First „ERP‟ system
    2000+ Customers
    25 years in Maintenance (until 2004)
    Mainframe based
    Modules:
     RS Basis         RM-Mat Materials Management
     RF Financial     RM-PPS Production
     RK Controlling RM-QM Quality Management
     RA Asset Mngt RM-LVS Warehouse Management
     RV Sales & D. RM-INST Plant Maintenance



 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 22
 ERP Evolution – SAP R/3
            1980‟s                                         1990‟s   2000‟s                    2005




             R/2




                                        Global Industry Standard
                                        20.000+ Customers
                                        Releases 2.0, 3.0, 3.1, 4.0, 4,5; 4,6
                                        Client Server Based
                                        Main Modules:
                                         Basis Technology          MM       Materials Management
                                         FI Financial Acc.         PP       Production Planning & Execution
                                         CO Controlling            QM       Quality Management
                                         HR Human Resourses WM              Warehouse Management
                                         SD Sales & D.             PM       Plant Maintenance
                                        Industry Solutions as Add On ( IS-Oil, IS-Auto, …)


 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 23
 ERP Evolution – SAP R/3 Enterprise (R3E)
            1980‟s                                         1990‟s          2000‟s                      2005




             R/2




                                                                     R/3 Enterprise Core:
                                                                     for stable environment

                                                                     R/3 Enterprise Extensions:
                                                                     for new functional enhancements

                                                                     SAP Web Application Server:
                                                                     Basis Technology for ABAP and
                                                                     WEB development

                                                                     Release 4.7 / Extension Sets 1.0 & 2.0


 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 24
 ERP Evolution – mySAP ERP 2005
            1980‟s                                         1990‟s                2000‟s                    2005




             R/2




                                             New/enhanced functionality includes:
                                                           Self Service Procurement
                                                           Internet Sales
                                                           Employee Self Services (ESS)
                                                           Manager Self Services (MSS)
                                                           Strategic Enterprise Management (SEM)

                                             New architecture (ESA) enabled by SAP Netweaver:
                                                           People Integration       (Portal)
                                                           Information Integration  (BW, Knowledge Management, MDM)
                                                           Process Integration      (XI, Business Process Management)
                                                           Application Plattform    (J2EE, ABAP, DB & OS Abstraction)
                                                           Composite Application Framework / Life Cycle Management

                                             Industry Consolidation (Switch Framework, mySAP ERP 2005)

 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 25
 mySAP ERP is:

   SAP‟s next generation
                                                                   mySAP Business Suite
   Enterprise Resource
   Planning solution
                                                                                      mySAP PLM
    Powered by SAP
     NetWeaver                                                                  Life-Cycle-, Project-, Quality-
                                                                                   and Asset Management
    Designed for all industries
                                                                                      mySAP ERP




                                                                    Purchase Order
                                                                     Requisitioning




                                                                                                                  Internet Sales
                                                                                                                   Sales Order
    Fully integrated within the                           mySAP                           Analytics
                                                                                           Financials
                                                                                                                                   mySAP
     mySAP Business Suite                                   SRM                        Human Resources
                                                                                       Corporate Services
                                                                                                                                    CRM
    Provides significant
                                                                              Inventory & Warehouse Mgmt.
     business benefits through                                                Manufacturing & Transportation

              People-Centric usability
                                                                                      mySAP SCM
              Adaptability to integrate
               new requirements
              Transparency and analytic                            SAP NetWeaver
               insight
              Full-Suite extendible ERP
               business processes



 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 26
 Extended Scope – New and enhanced Capabilities                                                  mySAP
                                                                                                 ERP




                                                            mySAP™ ERP Scope
                                                  Differentiation Efficiency

                                                             SAP® R/3® Scope

                  Your
                                                                 Your                  Your
               Suppliers &
                                                              Organization           Customers
                Partners



                                                           Insight     Flexibility




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 27
 New Platform: mySAP ERP                                                               ERP




                 SAP R/3                                    SAP R/3     mySAP ERP
                up to 4.6C                                 Enterprise   Edition 2004




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 28
 Self Service Procurement                                                                   ERP




                                                           Empowers employees to create
                                                           and easily manage their own
                                                           requisitions for MRO materials
                                                           and services according to your
                                                           company's rules.




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 29
 Internet Sales                                                                                                          ERP




                                                                                   Key Features
                                                                                       Multimedia product catalog
                                                                                       Real-time availability check
                                                                                       Powerful pricing and product
                                                                                        configuration
                                                                                       Interaction channel for order,
                                                                                        delivery, and invoice tracking
                                                Business Benefits
                                                      Easy-to-use Web shop - fully integrated with existing processes
                                                      TCO: Quick implementation and reduction of transaction costs



 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 30
 Self Services                                                                                                   ERP




                                                                                Manager Self-Services

                                                                                    Requisition Request
                                                                                    Equipment Management
                                                                                    Approval Processes
                                                                                    Interactive Forms/ Portal
                                                                                     Management
                                             Employee Self-Services                  Capabilities for IT Staff
                                                    Clock-In/Out Corrections
                                                                                    Home/ Area Page &
                                                    Home/ Area Page &               Roadmap Concept
                                                     Roadmap Concept


 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 31
 Strategic Enterprise Management                                                           ERP




       by providing the right planning and evaluation tools to steer the organization




                                                           Your benefits
                                                            Improved decision support and
                                                             control
                                                            Shorter closing cycle times
                                                            Improved forecasting accuracy
                                                             and timeliness
                                                            Enhanced efficiency in finance
                                                             processes

 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 32
 Composite Applications powered by NetWeaver               ERP




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 33
 Switch Framework for Industry Solutions                   ERP




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 34
 SAP ECC 5.00 (ERP Central Component)                                                       ERP




   as technical successor of SAP R/3 Enterprise

                                                           New:
                                                            Product Modeling Environment
                                                             for Variant Configuration
                                                            Direct Store Delivery
                                                            NEW: Beverage


                                                           Enhanced:
                                                            Resource-related Down Payments and
                                                             Billing
                                                            Trials in Recipe Management
                                                            Documentary Batch
                                                            Easy Document Management
                                                            DMS (Document Management System)
                                                             Connector for KM
                                                            CAD Integration




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 35
 mySAP ERP 2004 – Bill of Material                                                                            ERP




    ABAP Components:                                       SAP NetWeaver:
        ECC 5.0 (incl. ECC Core, Extension Set, PI,         WebAS 6.40 (ABAP, Java, integrated ITS,
         PI_BASIS, and ST-PI)                                 IGS)
        FINBASIS 3.0
                                                             BI 3.5 (ABAP and Java Integration
        E-Recruiting 3.0                                     Functionality)
        SEM-BW 4.0
                                                             Exchange Infrastructure XI 3.0
        SRM Server 5.0
                                                             Mobile Infrastructure 2.5
        Learning Solution 3.0 (Frontend)
        Catalog Content Management 1.0 (SAP                 Enterprise Portal 6.0 (incl. Portal Platform,
         Catalog)                                             Content Management and Collaboration)
        cProject Suite 3.1                                  TREX 6.1
        WFM Core 1.10_640
                                                           Frontend Components:
    Java Components:
                                                             SAPGUI
           Self Services 5.0 (XSS incl. ESS and MSS)
           Biller Direct 3.0                                BW, KW Frontend Components
           Internet Sales (ISA) 4.0                         Learning Solution 3.0 (Offline Player,
           Learning Solution 3.0 (Content Player)            Authoring Environment)
           IPC 4.0 (for ISA and for SRM)
                                                           Further Components:
    Mobile Components:                                       BI Content 3.52
           Mobile Time and Travel 1.6                       Business Packages for EP 6.0 (Portal
           Mobile Sales for HH 2.0                           Content) for selected processes
           Mobile Direct Store Delivery 2.0                 XI Content for selected processes
           Mobile Asset Management 2.5
                                                             Business Connector
                                                             Solution Manager

(Additional pricing may apply to different areas)
 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 36
mySAP ERP
for High Tech




                                1. Challenges and Strategies in the High Tech Industry

                                2. mySAP ERP

                                3. mySAP ERP for High Tech
 Time to Market
    Procure to Pay
       Plan to Make             4. SAP Best Practices for High Tech
          Order to Cash
            Service & Support

 Enterprise Mgmt. & Support
                                5. Delta SAP R/3 => SAP ERP => SAP Business Suite

                                6. Transition to mySAP ERP

                                7. Summary
             Solution Map - mySAP ERP for High Tech
Suppliers                                                                                                                                               Customers
                       Plan                              Source                     Make                     Deliver                   Return
& Partners                                                                                                                                              & Channels

                              Time-to-Market
             New Product Development & Intro. (NPDI)
              Engineering Change Management (ECM)
                                               Procure-to-Pay
                               Procurement of Goods and Services
                                     Inventory Management
                                     Supplier Collaboration
                                                                     Plan-to-Make
                                                            Demand & Supply Planning
                                                            Make to Stock Manufacturing
                                                            Make to Order Manufacturing
                                                             Distributed Manufacturing
                                                                                                     Quote-to-Cash
                                                                                                   Quotation Management
                                                                                                   Sales Order Processing
                                                                                                     Configure to Order
                                                                                                                       After Sales Support
                                                                                                                      Service Management
                                                                                                                    Service Parts Management
                                                                   Enterprise Management & Support
                                                                                 Financials
                                                                          Human Capital Management
                                                                             Corporate Services
                                                                                 Analytics
         Strategic Enterprise Management                     Financial Analytics             Operations Analytics             Workforce Analytics
                                                                              Operations Support
              Life-Cycle Data Management                  RoHS / WEEE Compliance             Indirect Procurement         Global Trade Services (GTS)


         SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 38
                                                                                                  Time to Market
 NPDI               (New Product Development and Introduction)




                                                           New Product Development and Introduction (NPDI) is the
                                                                process of managing all activities and resources to
                                                                         bring a new product to market that meets
                                                                                 customer needs and supports the
                                                                                                    business goals

              DISCOVER                          DEFINE         QUALITY                  SOURCE/       LAUNCH/
                                                                          PRODUCT
                                               (Portfolio,       &                       PLAN         SERVICE
                                                                           DESIGN
               (Market                         Program)      COMPLIANCE
              Opportunity)




           mySAP ERP Solution Elements:                                             Key Benefits:
           Easy Document Management System                                          Faster time to market
           Collaboration with partners through cFolders                             Minimize R&D spend
           CAD Integration                                                          Stronger program management
           Project & Program Management                                             Knowledge retention & sharing
           Change                                                                   Easy regulatory compliance


 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 39
                                                                                                   Time to Market
 ECM               (Engineering Change Management)




                                           Engineering Change Management allows objects to be
                                           changed with history (date validation) or dependent on
                                                specific conditions (according parameters)


                                                                   Change Management




                             Design                        Procurement   Manufacturing     Sales          Service

           mySAP ERP: Change Management for:                                        Key Benefits:
            Material Master                                                         React on changes
            Bill of Materials                                                       Track updates
            Routings                                                                Adapt on changing environments
            Documents                                                               Auditability
            Purchasing Documents (Version Management)                               Documentation / Reporting


 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 40
                                                                                       Procure to Pay
  Operational Procurement


                                                           • Procurement of Goods & Services

                                                           • Initiated by Planning or User Interaction

                                                           • PO and Outline Agreement Processing

                                                           • Scenario Variants for
                                                              • Subcontracting,
                                                              • Consignment and
                                                              • 3rd Party Processing
                                                              • Internal Procurement
                                                                (Transport Order)




           mySAP ERP:                                                 Key Benefits:
           Purchase Requisition (PR) Management                       Procurement Efficiency
           Release of PRs and POs                                     Global Spend Visibility
           PO processing
           Integration to Inventory Management
           Integration to Invoice Verification (A/P)

 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 41
                                                                           Procure to Pay
  Warehouse & Inventory Management




           mySAP ERP:                                      Key Benefits:
           Manage Quantity and Value of Inventory          Inventory Visibility
           Goods Receipt, Goods Issue, Stock Transfer      Regulatory Compliance
           Physical Inventory Counting                     RFID enablement
           Support of RFID, Barcode, Mobile Devices
           Warehouse Management

 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 42
  Manufacturing Execution                                                       Plan to Make




                                                           Manufacturing intelligence
                                                           dashboards: Role-based,
                                                           configurable, dashboards that
                                                           deliver alerts, reports, KPIs and
                                                           decision support

           mySAP ERP:                                      Key Benefits:
           Discrete Manufacturing                          efficient, collaborative, adaptive
           Repetitive Manufacturing                        close integration to
           External Processing                                   Materials Management
           Make to Stock                                         Controlling
           Make to Order                                         Financials


 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 43
 Order to Cash                                                                 Order to Cash




           mySAP ERP:                                      Key Benefits:
           Quotation Management                            deliver in time and on budget
           Sales Order Processing                          close integration to
           Order Fulfillment                                    Materials Management
           Delivery Management                                  Controlling
           Billing                                              Financials


 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 44
         Service & Support
                                                                                                                                  Serv.& Support




9. Financial Management                                                         1.   Service Sales & Marketing
  Visibility into Real-time Service Cost                                             Proactive Marketing
  Timely and Accurate Service Billing                                                Service Based on Customer Value
  Accurate and Reliable Activity Based Cost                                          Cross Sell/Up Sell additional services

                                                                                                       2. Service Contract Management
                                                       TPM                                                Dedicated Marketing and Sales Effort
                                                                                                          Configurable Service Offerings
8. Service Parts                                                                                          Service Budgeting and Forecasting
Management
 Enhance Demand Visibility                                                                                      3. Customer Service & Support
 Aggregate service parts data
                                                                                                                   Problem Resolution Knowledgebase
 Integrate Service Parts Planning
                                                                                                                   Real-time Access to Customer Info
                                                                                                                   Optimize Resource Assignment

                                                                                                        4. Installed Base Management
                                                                                                           Visibility of “as maintained” Configuration
                                                                                                           Demand Visibility to Plan for Parts
                                                                                                           Accurate Data Provides Up-Sell
7. Depot Repair
  Workforce Planning based on RMA
  Repair History identifies “scrap” candidates                                                     5. Warranty & Claims Management
  Product Configuration used to Up-Sell
                                                                                                      Manage Warranties as line of business
                                                                                                      Configurable Warranty Offerings
                                                                                                      Real-time tracking of Warranty Claims
                                        6. Field Service
                                            Optimize Resource Scheduling
                                            Improve Technician Effectiveness
                                            Preventive/Predictive Maintenance

        SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 45
 Financials (1)
                                                                                                          Enterprise Mgmt & S.



                                mySAP ERP Solution:
                                 Financial Accounting
                                              New General Ledger (extensions, online
                                               splits, real-time integration, parallel
                                               accounting)
                                                                                                 “Thanks to the newly
                                              Accounts receivable
                                              Accounts payable
                                                                                                 established system
                                              Fixed Assets Accounting                           infrastructure that speeds up
                                              Bank Accounting                                   and streamlines the flow of
                                              Cash Journal Accounting                           information, we can now
                                              Inventory Accounting                              make our monthly settlement
                                              Tax Accounting                                    of accounts in three days,
                                              Accrual Accounting                                where previously it took one
                                              Fast Close Support                                week.”
                                              Financial Statements
                                              Parallel Validation                               Novartis Pharma K.K.
                                 Management Accounting




                                                                         Key Benefits:
                                                                          Increased transparency and flexibility
                                                                          Greater efficiency of accounting staff
                                                                          Faster Close
                                   New/enhanced capability
                                   Capability available as part of R/3
                                   * Additional pricing applies
 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 46
 Financials (2)
                                                                                                         Enterprise Mgmt & S.

                             mySAP ERP Solution:
                              Financial Supply Chain Management *
                                          Credit Management                                     “SAP Biller Direct enables
                                          Electronic Bill Presentment and Payment               dealers to check their account
                                          Collections Management                                status and make payments
                                          Dispute Management                                    electronically. This frees our
                                          Inhouse Cash                                          customer accounts team to
                                          Cash and Liquidity Management                         improve collections and
                                          Treasury and risk management                          resolve disputes, enhancing
                              Corporate Governance                                              cash-flow.”
                                          Audit Information System
                                          Management of internal controls                       Matthew Jepp, General Manager
                                          Business Risk Management                              Finance Applications
                                          Whistleblower complaints                              Sony Information Systems &
                                          Transparency for Basel II                             Solutions Europe (ISSE)




                                                                         Key Benefits:
                                                                          Efficient processing of payments and irregularities
                                                                          Improved liquidity planning
                                                                          Consistent company-wide credit policy
                                                                          Proactive credit risk management
                                                                          Greater scrutiny
                                                                          Sarbanes-Oxley and Basel II compliance
                                   New/enhanced capability
                                   Capability available as part of R/3
                                   * Additional pricing applies
 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 47
 Human Capital Management
                                                                                                                Enterprise Mgmt & S.


            mySAP ERP Solution:
             Workforce Deployment
                         Project Resource Planning
                         Resource and Program Management
                         Call Center Staffing
             Workforce Process Management
                                                                                                   “ERP HCM implementation
                         Employee Administration
                                                                                                   led to: improved accuracy
                         Organizational Management
                         Expatriate Management
                                                                                                   and placement of internal
                         Benefits Management                                                      candidates in critical
                         Time and Attendance                                                      positions, reduction in
                         Payroll and Legal Reporting *                                            turnover, increase morale,
             Talent Management                                                                    improved development or
                         Recruiting *                                                             elimination of non
                         Career Planning                                                          performers”,
                         Succession Planning
                         Enterprise Learning (collaboration features, content                     Sab Miller
                          integration, content authoring, portal-based access, and
                          correspondence management) *
                         Performance Management (improved attachment
                          processing, appraisal calibration, and template
                          management)
                         Compensation Management           Key Benefits:
                                                                          effective acquisition and management of talent base
                                                                          improved individual talent development to ensure a
                                                                           properly-skilled workforce
                                   New/enhanced capability
                                   Capability available as part of R/3
                                   * Additional pricing applies
 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 48
 Corporate Services (1)
                                                                                                          Enterprise Mgmt & S.




                            mySAP ERP Solution:
                             Travel Management
                                         Travel Request and Pre-trip approval                 ”SAP Travel Expense Manager
                                         Travel Planning – Online Booking                     offers a flexible, integrated
                                         Travel Expense Management (Employee
                                                                                               solution for reporting and
                                          Self Service, Mobile Travel Expenses)
                                         Global Travel Policy Compliance
                                                                                               processing travel and
                                         Travel and Expense Analytics                         entertainment expenses. [...] It is
                             Environment, Health & Safety * (data                             highly customizable and able to
                              import from external content providers)                          handle a broad spectrum of
                                         Product Safety                                       country-specific requirements.
                                         Hazardous Substance Management                       We expect to cut travel expense
                                         Dangerous Goods Management                           processing costs in half within
                                         Waste Management                                     12 to 18 months of the
                                         Industrial Hygiene & Safety                          implementation for an annual,
                                         Occupational Health                                  recurring savings of almost
                                         Emmissions Management                                €550,000”

                                                                                               Agfa


                                                                        Key Benefits:
                                                                         Improved control of travel expenses
                                                                         Reduced cost of compliance
                                  New/enhanced capability
                                  Capability available as part of R/3
                                  * Additional pricing applies

 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 49
 Corporate Services (2)
                                                                                                           Enterprise Mgmt & S.


                                mySAP ERP Solution:
                                 Incentive & Commission Management *
                                             Incentive Plan Maintenance (Enhanced
                                              Management of Incentive Compensation
                                              Plans, Calculation of Variable                    “SAP Incentive and
                                              Compensation)                                     Commission Management
                                             Incentive Processing (Compensation                helped T-Mobile encourage
                                              Results Analysis)                                 new sales by enabling it to
                                 Real Estate Management *                                      quickly and easily change the
                                             Property Acquisition and Disposal                 commission rate – to reflect
                                              (Simplified Property Management)
                                                                                                new products and services,
                                             Property Portfolio
                                                                                                for example – for thousands
                                             Commercial Management (Space
                                              Management, Rental Vacancy Management,            of contracts at the click of a
                                              Rent Adjustments, Service Charge                  button. The result: more-
                                              Settlements)                                      motivated and thus more-
                                             Technical Management                              effective sales staff and
                                             Controlling and Reporting (Integration to         partners.”
                                              Financials)
                                                                                                T-Mobile


                                                                        Key Benefits:
                                                                         Flexibility to create and manage incentive plans
                                                                          that support the corporate sales strategy
                                                                         Increase Real Estate Revenue while reducing
                                  New/enhanced capability
                                  Capability available as part of R/3     administration costs
                                  * Additional pricing applies

 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 50
 Analytics
                                                                                                         Enterprise Mgmt & S.



                               mySAP ERP Solution:
                                Strategic Enterprise Management
                                Financial Analytics
                                Operations Analytics
                                Workforce Analytics
                                Key Capabilities
                                            planning and evaluation tools to steer the
                                             company (e.g. Balanced Scorecard)
                                            prepackaged business content tailored for
                                             different user roles in different vertical
                                             industries
                                            decision-support tools for mission-critical
                                             tasks (e.g. query, reporting,
                                             multidimensional analysis)
                                            can combine information from across SAP
                                             solutions and non-SAP systems



                                                                        Key Benefits:
                                                                         Integration of strategy execution into day-to-day
                                                                          business
                                                                         Organizational alignment across business units
                                                                         Streamlined internal and external reporting
                                                                         Better informed decisions
                                  New/enhanced capability                Improved transparency of business risks
                                  Capability available as part of R/3
                                  * Additional pricing applies

 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 51
 Operations Support (1)
                                                                                                        Enterprise Mgmt & S.



                              mySAP ERP Solution:
                               Global Trade Management *
                                   Sanctioned Party List Screening
                                   Export control
                                   Product Classification
                                   Duty Calculation                                         Internet technology is an
                                                                                             important part of our strategy at
                                   Customs Communication Service
                                                                                             MLP. SAP Employee Self-
                                   Trade Preference Processing                              Service and SAP Business-to-
                                   Restitution Handling                                     Business Procurement have
                               Indirect Procurement                                         enabled us to optimally
                                   Self-Service Requisitioning                              integrate our internal processes.
                                   Purchase Order Processing
                                      (Purchasing Print Forms with Adobe)                    Dr. Bernhard Termühlen, CEO at MLP
                                   Receipt Confirmation
                                   Invoice Verification




                                                                        Key Benefits:
                                                                         Reduced cost of indirect procurement
                                                                         Empowerment of employees
                                  New/enhanced capability
                                  Capability available as part of R/3
                                  * Additional pricing applies

 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 52
 Operations Support (2)
                                                                                                           Enterprise Mgmt & S.

                             mySAP ERP Solution:
                              Quality Management                                     “With the old processes, NextPress
                                           Quality Engineering (trial-specific       engineers would design a new product,
                                            stability studies)                        solicit quotes, and generate specs on the
                                           Quality Assurance and Control             required parts. In the manufacturing
                                            Quality Improvement
                                                                                      phase, all the required parts information
                                           Audit Management
                                                                                      would need to be transformed into the
                              Program & Project Management
                                                                                      numbering and pricing system used by
                                           Project Planning
                                           Resource and Time Management
                                                                                      the manufacturing organization. Keeping
                                           Project Execution                         these two worlds separate was a
                                           Project Accounting (Resource              significant impediment to squeezing cost
                                            related down payments & billing)          out of the organization”
                                           Prototyping & Ramp-up
                                           Development Collaboration                 NexPress Solutions




                                                                        Key Benefits:
                                                                         Simplified and accelerated planning of stability
                                                                          studies
                                                                         Simplified management of quality manuals
                                                                         Goods Manufacturing Practice (GMP)
                                                                          requirements supported
                                                                         Simplified billing of services between different
                                                                          organizational units
                                  New/enhanced capability
                                  Capability available as part of R/3
                                                                         Reduced development time
                                  * Additional pricing applies

 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 53
mySAP ERP
for High Tech




                1. Challenges and Strategies in the High Tech Industry

                2. mySAP ERP

                3. mySAP ERP for High Tech

                4. SAP Best Practices for High Tech

                5. Delta SAP R/3 => SAP ERP => SAP Business Suite

                6. Transition to mySAP ERP

                7. Summary
    SAP Best Practices
Traditional project
                                                              Enable fast and easy implementa-
                                                                 Working prototype
                                                              tion of mySAP Business Suite
                                           With SAP
                                         Best Practices       Demonstration of a solution that
                                                              is easy to:
                                                               identifywith
                                                               implement
                                                               adapt to specific
                                                                requirements

                                                              Get a living and fully documented
                                                              prototype within days that you
                                                              can rapidly turn into a productive
                                                              solution
         Time and effort savings

      Identification and anticipation of reusable business processes
                           and project activities

    SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 55
  SAP Best Practices Portfolio Strategy

Accelerating
                                Industry Packages,                       Business                   and, SAP NetWeaver
                                                                         Applications,              solutions

                                               Metals       Consumer     CRM          SCM          Process      Analytics
                                                            Goods                                  Integratio
                                                                                                   n

                  Agro-                                     High Tech    SRM          SRM          Mobility
                  Industries

                                           Chemical                                                Port
                                           s                Services     Baseline -   Baseline -
                                                                         USA          Germany      al



                                    Retail                  Pharma       Baseline -   Baseline
                                                                         France       Nordic

                Wholesale
                                                            Industrial. Baseline -
                                                            Machinery   …
                                                               and
                                                            components
                                            Logistics       Automotive




              SAP Best Practices can be used in combination, or independently
              to integrate into your future or existing IT landscape
  SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 56
 A Worldwide Study has Proven the Value-Add of SAP
 Best Practices to Midmarket Projects
       “Without SAP Best Practices,
       the final solution would have
        been more complex due to                                                                                             Time reduction
        more responsiveness to the
     extreme expectations. The SAP
     Best Practices helped to defend
      the 'middle line'. Therefore, the
      overall project was speedier as
     the most of the time-consuming
                                                                                                                             Cost reduction
       debates have been shortcut.”                                                                                            (1000 Euro)




                                                                                                                             TCO reduction
                                                                                                                               (1000 Euro)




                                                           Results are evident
                                                                *) based on a study by University of Ludwigshafen, Germany
 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 57
 Solution Scope - SAP Best Practices for High Tech V1.600
                     Time-to-Market
 H75:   PLM - Product Development and Collaboration +                                                                          * new
 H85:   PLM - Prototype Development                                                                                            + enhanced
 H91:   PLM - Product Data Collaboration w. Subcon.
 H55:   CRM - Design Registration
 H11:   ECM - for Make-to-Stock (MTS) Production
 H69:   ECM - for Configure-to-Order (CTO) Production
                                        Procure-to-Pay
                    J49: Procurement of Stock Material
                    J50: Procurement - Contract
                    J51: Internal Procurement (with & w/o Delivery) (J52)
                    J53: Internal Procurement (Cross Company Transfer)
                    S61 : SRM - Plan Driven Proc. w. Supplier Integration *
                    H88: Quality Management in Procurement
                    J73 : Physical Inventory and Balance Sheet Valuation
                                                                Plan-to-Make
                            H10: SOP, Long Term Planning and Capacity Evaluation
                            H83: MTS - Production with External Processing and Serial Numbers +
                            H84: MTS - Production with Batch -, Warehouse - and Handling Unit Management
                            H97: MTS - Production with Production Versions and Kanban Processing
                            H80: MTO - Production with Repetitive Manufact.,3rd Party Order & Subcontracting
                            H74: MTO - Production with Serial Numbers / RosettaNet (RN) – SAP XI
                            S37: SCM - MTO Production w. Component Availability Check; w. Cap. Check (S38)
                            S52: SCM - ICH Contract Man. Procurement & Supply Network Inventory *
                                                                               Quote-to-Cash
                                               J62: Sales Order Proc. - Cross-Company Sales Order Processing
                                               H50: Sales Order Proc. - B2B/B2C (H51) for HT in CRM e-Comm.; for ERP (H56/H57)
                                               H70: CTO - Production with Variant Configuration and Assembly Processing
                                               H71: CTO - Production w. Credit Limit Check, Legal Control (H72), Mat.Variant (H73)
                                                                                              After Sales Support
                                                                      H76: Service Management - On-Site Service +
                                                                      H77: Service Management - Repairs at Plant / Repair Order Processing
                                                                      H99: Service Management - Material Exchange Processing
                                                                      H86: Service Management - Returns Processing and Refurbishment
                                                                      H87: Service Parts Management - Spare Parts Sales Order Processing
                                                        Enterprise Management & Support
 H65: SAP NP - Sales Assistant                         H66: SAP NP - Purchasing Agent                H67 SAP NP - Plant Manager
 H68: SAP NP - Production Supervisor *                 H44: SAP Business Intelligence - Analytics for High Tech
 SAP SAP GTS -ERP for High Tech /Stefan Gerber / 58
 H94: AG 2005, SAP Compliance Management               H95: SAP GTS - Customs Management             H96: SAP GTS - Risk Management +
                                      SAP ERP High Tech Manufacturers Packaged Solution
                                               Planning                   Materials Management          Manufacturing             Sales & Distribution        Customer Service


                                     H75: Product Design & Engineering
                                     H85: Prototype Development
                                                   J49: Procurement of Stock Material
SAP Best Practices for High Tech




                                                   J50: Procurement with Quantity Contract
                                                   J51: Internal Procurement (Stock Transfer with Delivery)
                                                   J52: Internal Procurement (Stock Transfer w/o Delivery)
                                                   J54: Third Party with Shipping Notification
                                                   J56: Bought-In Item (customer specific stock)
                                                                         H83: Make to Stock Production with External Processing
                                                                         H84: Make to Stock Production with Batches and Serial numbers*
                                                                         H73: Make to Order with Material Variant
                                                                         J75: Production with 3rd Party, Subcontracting, External Processing
                                                                                                    J57: Extended Order Sales Processing *
                                                                                                    J58 Customer Consignment Processing
                                                                                                    H70; Variant Configuration with Assembly Processing
                                                                                                    H71: Variant Configuration with Credit Limit Check
                                                                                                    H72: Variant Configuration with Legal Control
                                                                                                                                       H77: Service Processing - Repairs at Plant



                                                                                              Enterprise Management & Support
Base Line BP




                                                                                                          Financials
                                                                                                   Human Capital Management
                                                                                                          Operations
                                                                                                      Operations Support
                                                                                                      Corporate Services

                                    * limited Best Practices Scope
                                    SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 59
mySAP ERP
for High Tech




                1. Challenges and Strategies in the High Tech Industry

                2. mySAP ERP

                3. mySAP ERP for High Tech

                4. SAP Best Practices for High Tech

                5. Delta SAP R/3 => SAP ERP => SAP Business Suite

                6. Transition to mySAP ERP

                7. Summary
    Technology as Enabler for Innovation

                                                           SAP R/3                 mySAP ERP

  Paradigm                                  Client Server Architecture    Service Oriented Architecture (ESA)

                                                                            Leverage existing Infrastructure

                                                                              Adaptable business through
                                                    Distribute & Scale         reassembly of Processes
  Benefits
                                              Graphical User Interface   End-to-End business scenarios include
                                                                               external Business Partners

                                                                              Role based User Interaction

  Business
                                                  Functional Modules      Components & Enterprise Services
  Application
                                                    R/3 Basis                       SAP Netweaver
  Technology                                      Separation of                   Process Integration
  Platform                                   Datatbase & Application            Information Integration
                                                Web-Enablement                    People Intergration

  Transition                                               Migration            Evolutionary Transition




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 61
        mySAP ERP – Solution Map

Self Services                                             Manager Self Service                                         Employee Self Service

                                      Strategic Enterprise
Analytics                                                                   Financial Analytics         Operations Analytics          Workforce Analytics
                                          Management

                                                                                                                                     Financial Supply Chain
Financials                          Corporate Governance                  Financial Accounting        Management Accounting
                                                                                                                                          Management

Human Capital                      Employee Relationship                   Employee Lifecycle          Employee Transaction
                                                                                                                                    Workforce Management
Management                             Management                            Management                   Management

Operations:                                                        Inventory                                               Sales Order         Service Order
                                    Purchasing                                     Manufacturing        Distribution
Value Generation                                                  Management                                               Management          Management

Operations:                            Product Structure
                                                                           Project Management           Quality Management            Asset Management
Support                                  Management

                                                                                                      Incentive and Commission
Corporate Services                    Travel Management                Environment, Health & Safety                                  Corporate Real Estate
                                                                                                             Management

SAP NetWeaver™                         People Integration                 Information Integration        Process Integration          Application Platform




        SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 62
        From SAP R/3 to mySAP ERP – Self-Services & Roles

Self Services                                            Manager Self Service                         Employee Self Service



                     SAP R/3 Enterprise                                         Additional functionality in mySAP ERP

    Human Resources
            Employee Self-Services
            Manager Self-Services




                                                                                     Employee Self-Services
                                                                                          Time-Posting Corrections
                                                                                          Home/ Area Page & Roadmap Concept



                                                                                     Manager Self-Services
                                                                                        Requisition Request
                                                                                        Equipment Management
                                                                                        Approval Processes
                                                                                        Interactive Forms/ Portal Management
                                                                                         Capabilities for IT Staff
                                                                                        Home/ Area Page & Roadmap Concept




                                                                                * Volume/Usage based pricing

       SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 63
       From SAP R/3 to mySAP ERP– Financials

                                                                                                                       Financial Supply Chain
Financials                         Corporate Governance          Financial Accounting         Management Accounting
                                                                                                                            Management


  SAP R/3 Enterprise (FI, AM, TR, EC-CS)                                            Additional functionality in mySAP ERP
     Financial Accounting
              Financial Statements
              General Ledger & Sub Ledgers


     Cash and Liquidity Management
                                                                                        Financial Accounting
                                                                                              New General Ledger
                                                                                              Fast Close Support
                                                                                        Corporate Governance
                                                                                              Management of Internal Controls
                                                                                              Whisteblower Complaints

                                                                                        Financial Supply Chain Management
                                                                                              Credit Management *
                                                                                              Electronic Bill Presentment & Payment *
                                                                                              Dispute & Collection Management
                                                                                              In-House Cash *
                                                                                              Cash & Liquidity Management
                                                                                              Treasury & Risk Management *




       SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 64
       From SAP R/3 to mySAP ERP– HCM

Human Capital                     Employee Relationship          Employee Lifecycle          Employee Transaction
                                                                                                                     Workforce Management
Management                            Management                   Management                   Management


                     SAP R/3 Enterprise                                           Additional functionality in mySAP ERP
    Employee Life-Cycle Management
               Applicant Tracking
               Compensation
               Training & Employee Development
               Performance Management
              …
                                                                                         E-Recruiting and Talent Relationship
                                                                                          Management *

                                                                                         SAP Learning Solution *
                                                                                          Enhanced functionality such as collaboration
                                                                                          features, content integration, content
                                                                                          authoring, portal-based access, and
                                                                                          correspondence management
                                                                                         SAP Tutor *

                                                                                      Performance Management
                                                                                      Enhanced functionality such as improved
                                                                                      attachment processing, appraisal calibration
                                                                                      and template management.


                                                                                      * Volume/Usage based pricing

       SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 65
       From SAP R/3 to mySAP ERP– Operations

Operations:                                                       Inventory                                        Sales Order       Service Order
                                   Purchasing                                 Manufacturing        Distribution
Value Generation                                                 Management                                        Management        Management


                     SAP R/3 Enterprise                                                 Additional functionality in mySAP ERP
     Purchasing
     Inventory Management
     Production
     Sales Order Management
                                                                                          Procurement
                                                                                                 Self-Service Requisitioning
                                                                                                 Purchasing Printforms with Adobe

                                                                                          Inventory & Warehouse Management
                                                                                                 RFID Enablement *

                                                                                          Manufacturing
                                                                                                 Documentary Batch

                                                                                          Mobile Sales for handhelds
                                                                                                 Customer Management
                                                                                                 Sales Order Management
                                                                                                 Material Management
                                                                                          Internet Sales
                                                                                                 B2B Scenario
                                                                                                 B2C Scenario *

                                                                                         * Volume/Usage based pricing

       SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 66
        From SAP R/3 to mySAP ERP– Operations Support

Operations:                            Product Structure
                                                                  Project Management           Quality Management          Asset Management
Support                                  Management


       SAP R/3 Enterprise (PS, PM, QM)                                             Additional functionality in mySAP ERP
     Master Data
     Project Management
     Quality Management
     Maintenance                                                                       Life-Cycle Data Management
                                                                                            Trials in Recipe Management *
                                                                                            Easy Document Management System
                                                                                            Product Modeling Environment
                                                                                            CAD Desktop Integration *
                                                                                            Collaboration with partners and suppliers
                                                                                            Guided Procedures

                                                                                       Program & Project Management
                                                                                            Resource-related down payments & billing

                                                                                       Quality Management
                                                                                            Trial-specific stability studies
                                                                                            Quality Improvement

                                                                                       Enterprise Asset Management
                                                                                            Maintenance Cost Budgeting


        SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 67
       From SAP R/3 to mySAP ERP– Corporate Services

                                                                                                   Incentive and Commission
Corporate Services                   Travel Management            Environment, Health & Safety                                Corporate Real Estate
                                                                                                          Management


                     SAP R/3 Enterprise                                                   Additional functionality in mySAP ERP
     Travel Management
     Environment, Health & Safety *
     Real-Estate Management *

                                                                                            Travel Management
                                                                                                  360 Degree Travel Management
                                                                                                   (web-based single access point for
                                                                                                    travel and expenses)

                                                                                            Environment, Health & Safety *
                                                                                                  Data Import from external content providers

                                                                                            Incentive & Commission Management *
                                                                                                  Improved communication with commission
                                                                                                   recipients
                                                                                                  New reporting features
                                                                                                  Wider integration with mySAP CRM

                                                                                            Real-Estate Management °
                                                                                                Simplified Property Management
                                                                                                Service Charge Settlements

    * Volume/Usage based pricing                       ° Volume/Usage based pricing for commercial and residential use,
                                                          no additional pricing for corporate use
       SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 68
 mySAP Business Suite



                                                              mySAP PLM

                                                              mySAP ERP
                                                                  Financials
                                    mySAP                  Human Capital Management   mySAP
                                     SRM                          Operations
                                                              Corporate Services       CRM
                                                                   Analytics
                                                                Self-Services


                                                               mySAP SCM



                                                            SAP NetWeaver


 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 69
 mySAP Business Suite



                                                            mySAP PLM



                                    mySAP                   mySAP ERP      mySAP
                                     SRM                                    CRM



                                                            mySAP SCM



                                                           SAP NetWeaver


 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 70
 Composition of mySAP ERP & mySAP SRM


mySAP ERP                                                 Operational and Tactical Sourcing    (MM)
                                                          Contract Management
                                                          Purchase Order Management
                                                          Invoice Management and Verification
                                                          Services Procurement (structured, complex services)
                                                          Other related functions like:
                                                              Inventory & Warehouse Management, …

                                                          Self-Service Procurement*
    mySAP ERP                                             Supplier Order Collaboration**
        &                                                 Catalog Content Management
    mySAP SRM                                             Services Procurement (consulting & temp. labor) ***
                                                          Operations Analytics
                                                           * classic mode only   ** for MRO   *** planned but not yet committed for mySAP ERP 2005

                                                       Supply Strategy Development
mySAP SRM                                              Spend Analysis
                                                       Supplier Selection (supplier qualification, RFX,
                                                        auctions)
                                                       Centralized Contract Management
                                                       Central Source of Supply Determination


 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 71
  Composition of mySAP ERP & mySAP PLM



mySAP ERP


                                                           Life-Cycle Data Management
     mySAP ERP                                             Program & Project Management
                                                           Quality Management
         &
                                                           Enterprise Asset Management
     mySAP PLM                                             Operations Analytics
                                                           Environment, Health & Safety


mySAP PLM                                                  Audit Management


xApps                                                      xEM Emissions Management
                                                           xRPM Resource and Portfolio Management
                                                           xPD Product Definition




  SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 72
 Composition of mySAP ERP & mySAP CRM

mySAP ERP                                              Distribution (SD)
                                                       Customer Service (CS) incl. mobile Solution
                                                        (SAP Mobile Asset Management)
                                                       Other related functions like:
                                                               Transportation Execution (LES)
                                                               Foreign Trade (LES)
                                                               Warehouse Management (WM)
                                                               Inventory Management (MM), …

                                                          Sales (SD)
    mySAP ERP                                             Billing (SD)
        &                                                 SAP Internet Sales in mySAP ERP
    mySAP CRM                                             SAP Mobile Sales with mySAP ERP*
                                                          Operations Analytics                  * based on Mobile Engine



mySAP CRM                                                 Marketing (CRM)
                                                          Sales (CRM)
                                                          Service (CRM)
                                                          Field Applications (CRM)
                                                          E-Commerce (CRM)
                                                          Interaction Center (CRM)
                                                          Channel Management (CRM)


 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 73
 Composition of mySAP ERP & mySAP SCM


mySAP ERP                                                 Other related functions like:
                                                               Sales Order Management
                                                               Foreign Trade, …

                                                          Manufacturing Execution & Planning (based on MRP)
                                                          Order Fulfillment
 mySAP ERP                                                Inventory & Warehouse Management
     &                                                    Transportation Execution
 mySAP SCM                                                Procurement
                                                          Operations Analytics


mySAP SCM
                                                          Strategic Planning
                                                          Demand Planning
                                                          Supply Planning (incl. global Available-to-Promise)
                                                          Production Planning & Detailed Scheduling
                                                          Transportation Planning
                                                          Supply Chain Collaboration
                                                          Supply Chain Visibility
                                                          Supply Chain Performance Management



 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 74
mySAP ERP
for High Tech




                1. Challenges and Strategies in the High Tech Industry

                2. mySAP ERP

                3. mySAP ERP for High Tech

                4. SAP Best Practices for High Tech

                5. Delta SAP R/3 => SAP ERP => SAP Business Suite

                6. Transition to mySAP ERP

                7. Summary
    mySAP ERP Transition – License View

                                                                  mySAP Business Suite contract
                                                                       (formerly „mySAP.com contract‟)
mySAP Business Suite
     contract                                              …includes functionality in ERP, SCM, CRM, PLM, and SRM, all
                                                                          enhanced by SAP NetWeaver.
                                                                   >Available to existing and new customers<



 mySAP ERP contract
                                                                          mySAP ERP contract
                                                           … includes functionality for analytics, finance, human capital
                                                               management, operations and corporate services, all
                                                                         enhanced by SAP NetWeaver.
                                                                   >Available to existing and new customers<


                                                                             SAP R/3 Contract
      SAP R/3 contract
                                                                      …includes the functionality of SAP R/3
                                                                             and SAP R/3 Enterprise.
                                                                      >Available to existing customers only<
          License View




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 76
 mySAP ERP Transition has Three Dimensions

                                                            License
                                                                     license to mySAP ERP or
                                                              Convert
                                                               mySAP Business Suite contract

                                                            Upgrade
                                                              Upgrade current SAP R/3 release
                                                               to SAP ECC

                                                            Implementation
                                                              Implement additional components
                                                               comprised in mySAP ERP




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 77
 mySAP ERP Transition – Example

                                                            SAP R/3 customer

                                                            Running SAP R/3 4.6C

                                                            Convert license to
                                                             mySAP ERP




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 78
 mySAP ERP Transition – Example

                                                            SAP R/3 customer

                                                            Running SAP R/3 4.6C

                                                            Convert license to
                                                             mySAP ERP

                                                            Upgrade to SAP ECC




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 79
 mySAP ERP Transition – Example

                                                            SAP R/3 customer

                                                            Running SAP R/3 4.6C

                                                            Convert license to
                                                             mySAP ERP

                                                            Upgrade to SAP ECC

                                                            Select business scenarios




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 80
 mySAP ERP Transition – Example

                                                            SAP R/3 customer

                                                            Running SAP R/3 4.6C

                                                            Convert license to
                                                             mySAP ERP

                                                            Upgrade to SAP ECC

                                                            Select business scenarios




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 81
 mySAP ERP Transition – Example

                                                            SAP R/3 customer

                                                            Running SAP R/3 4.6C

                                                            Convert license to
                                                             mySAP ERP

                                                            Upgrade to SAP ECC

                                                            Select business scenarios

                                                            Determine required
                                                             components




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 82
 mySAP ERP Transition – Example

                                                            SAP R/3 customer

                                                            Running
                                                             SAP R/3 4.6C

                                                            Convert license to
                                                             mySAP ERP

                                                            Upgrade to
                                                             SAP ECC

                                                            Select business
                                                             scenarios

                                                            Determine required
                                                             components

                                                            Implement needed
                                                             components




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 83
     Deployment Options with mySAP ERP

Target:              Your company wants to benefit from the Business Information
                     Warehouse capabilities provided by mySAP ERP
Today:               You are operating SAP R/3 4.6C

Today:                                      Option A*:                           Option B*:                           Option C*:




 SAP R/3                                        SAP R/3            SAP BW          SAP ECC              SAP BW          SAP ECC             SAP BW
  4.6C                                            4.6C               3.5             5.0                  3.5             6.0                 3.5


                                                  Stay            Install and      Upgrade             Install and      Upgrade            Install and
                                                                  implement                            implement                           implement




                                            + No effort required for SAPR/3      + Add. functionality and benefits   + Add. functionality and benefits
                                              upgrade                              provided by SAP ECC 5.0             provided by SAP ECC 6.0
                                            + Immediate start of                 + Longer mainstream main-           + Benefits provided by
                                              SAP BW implementation                tenance                             integration of Industry
                                                                                                                       Solutions into SAP ECC 6.0
                                            - SAP R/3 upgrade still required     - Higher effort (upgrade and        - Higher effort (upgrade and
                                              by 2006 (phased approach             implementation at same time)        implementation at same time)
                                              possible combining Options A +
                                              C)

                                            * These are examples only. More options might be available to the individual customer

     SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 84
     Deployment Options with mySAP ERP

Target:              You want to benefit from the Business Information
                     Warehouse capabilities provided by mySAP ERP
Today:               You are operating SAP R/3 4.6C and SAP BW 3.0B

Today:                                      Option A*:                           Option B*:                           Option C*:




                                                SAP R/3
 SAP R/3                 SAP BW                                     SAP BW         SAP ECC                SAP BW        SAP ECC               SAP BW
                                               Enterprise
  4.6C                    3.0B                                       3.0B            5.0                    3.5           6.0                   3.5
                                                  4.7

                                                Upgrade               Stay         Upgrade                Upgrade       Upgrade               Upgrade




                                            + Add. functionality provided by     + Add. functionality and benefits   + Add. functionality and benefits
                                              SAP R/3 Enterprise                   provided by SAP ECC 5.0             provided by SAP ECC 6.0
                                                                                 + Longer mainstream main-           + Benefits provided by
                                                                                   tenance                             integration of Industry
                                                                                                                       Solutions into SAP ECC 6.0
                                            - SAP BW upgrade still required      - Higher effort (upgrade all in     - Higher effort (upgrade all in
                                              untilQ1/2005                         same timeframe)                     same timeframe)
                                            - Functionality in SAP BW is still
                                              limited to SAP BW 3.0B

                                            * These are examples only. More options might be available to the individual customer

     SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 85
       Deployment Options with mySAP ERP

Target: Customer wants to benefit from the Business Information
        Warehouse capabilities provided by mySAP ERP
Today:       Customer operates SAP R/3 4.6C only

Today:                                       Option A:                           Option B:                            Option C*:




SAP R/3                                        SAP R/3              SAP BW        SAP R/3              SAP BW
                                                                                  Enterprise                           SAP ECC
 4.6C                                           4.6C                  3.5                                3.5
                                                                                                                                     Upgrade
                                                      Stay        Install and         Upgrade        Install and
                                                                                                                       SAP BW          and
                                                                  implement                          implement                      implement




                                             + No effort required for            + Add. functionality and benefits    + Add. functionality and benefits
                                               SAPR/3 upgrade                      provided by SAP R/3 Enterprise       provided by SAP ECC
                                             + Immediate start of                + Longer mainstream main-            + Lower TCO through
                                              SAP BW implementation                tenance for SAP R/3 Enterprise       integrated SAP BW 3.5

                                             - SAP R/3 upgrade still required    - Higher effort (upgrade and         - Higher effort (upgrade and
                                               by 2006                             implementation in same               implementation in same
                                                                                   timeframe)                           timeframe)


                                            * These are examples only. More options might be available to the individual customer

     SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 86
       Release and Maintenance Strategy


mySAP ERP
                                                                                                                                          Extended       Extended                Customer-
                                                                    Ramp-
                                                                                       Mainstream Maintenance                               Maint.      Maintenance               Specific
  2005                                                               Up
                                                                                                                                         (17% + 2%)     (17% + 4%)              Maintenance




mySAP ERP                                        Ramp-
                                                                                                                             Extended         Extended
                                                                                                                                                                   Customer-Specific
                                                                        Mainstream Maintenance                                 Maint.        Maintenance
  2004                                            Up
                                                                                                                            (17% + 2%)       (17% + 4%)
                                                                                                                                                                     Maintenance




 SAP R/3
                                                                                                                Extended           Extended
                       Ramp-                                                                                                                             Customer-Specific
                                                    Mainstream Maintenance                                        Maint.         Maintenance
Enterprise              Up
                                                                                                               (17% + 2%)         (17% + 4%)
                                                                                                                                                           Maintenance




                                                                                   Extended           Extended
                                                                                                                             Customer-Specific
 SAP R/3                       Mainstream Maintenance                                Maint.          Maintenance
                                                                                                                               Maintenance
  4.6C
                                                                                  (17% + 2%)         (17% + 4%)




 SAP R/3                 Mainstr.           Extended           Extended
                                                                                        Customer-Specific
                                              Maint.          Maintenance
3.1I – 4.6B              Maint.            (17% + 2%)         (17% + 4%)
                                                                                          Maintenance
                                                                         Mar




                                                                                                                      Mar
                            Dec



                                         Dec



                                                      Dec




                                                                                 Dec




                                                                                                                      Dec
                                                                                                              Mar




                                                                                                                                      Mar



                                                                                                                                                  Mar
                                                                                              Dec




                                                                                                                                                             Mar



                                                                                                                                                                          Mar
                   2002           2003         2004         2005        2006           2007         2008     2009         2010        2011        2012        2013        2014


                                                         This strategy is also valid for all Industry Add-Ons based on the releases above.

       SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 88
 SAP Offerings to Successfully Manage the mySAP ERP
 Transition and Upgrade


                                 „SAP is ready to help you with tailored service, tools
                                 and content to successfully manage your mySAP
                                 ERP transition.“


                                       mySAP ERP Transition & Upgrade Services
                                       Services to discover and evaluate mySAP ERP for your
                                        customer-specific situation
                                       Services to estimate the effort and precisely plan your project
                                       Tailored services to master key challenges during your mySAP
                                        ERP transition & upgrade project


                                        Upgrade Tools and Content
                                       SAP Solution Manager and SAP Upgrade Roadmap: SAP„s plat-
                                        form and methodology to efficiently manage an upgrade project
                                       SAP Upgrade Info Center: central source of information to prepare
                                        an mySAP ERP upgrade project

 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 89
mySAP ERP
for High Tech




                1. Challenges and Strategies in the High Tech Industry

                2. mySAP ERP

                3. mySAP ERP for High Tech

                4. SAP Best Practices for High Tech

                5. Delta SAP R/3 => SAP ERP => SAP Business Suite

                6. Transition to mySAP ERP

                7. Summary
 mySAP ERP Versus mySAP Business Suite

                                                                                                 mySAP Business Suite

                                          mySAP ERP
                                                                           Order to cash,        Marketing             mySAP
    Financials                           Analytics
Accounting,                         Financial
                                                                           Internet Sales
                                                                                             +   campaign,
                                                                                                 Opportunity &
                                                                                                                         CRM
Corporate                           analytics,                                                   Contact, CIC
Governance,                         Workforce
Financial Supply                    analytics,                             Procure to Pay,       Strategic sourcing,   mySAP
                                                                                             +
Chain,                              Operations                             Self-Service          Auctioning              SRM
SEM, ..                             analytics,..                           procurement,



                                                              Operations
                                                                           MRO

Employee                            Travel,
Relationship,                       EH&S,                                  Design to             Audit management      mySAP
Lifecycle and
transaction, SAP
                                    Incentives &
                                    Commissions,
                                                                           Manufacture,
                                                                           cProjects,        +                           PLM
                                                                           cFolder
e-recruitment,                      Real Estate, ..
SAP Learning,
…                                                                          Planning,             Demand & Supply       mySAP
          HCM
                                        Corporate
                                        Services
                                                                           Make-to-XXX,
                                                                           Dock to           +   Planning, gATP,
                                                                                                 Inventory Collab.,
                                                                                                                         SCM
                                                                           dispatch              Event Mgmt.



 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 91   SAP NetWeaver
    mySAP ERP – Typical Roadmap of a High Tech Company
 Value                                                                                        mySAP Business Suite
                                                                                                                             18
                                                                                                                        17
                                                                                                                   16
                                                                     mySAP ERP                                14
                                                                                                         13
                                                           10.   Self Services (ESS/MSS)            12
                                                            9.   Internet Sales               11
                SAP R/3 / ERP                               8.   NPDI (cFolders, cProjects)
                                                                                              18.   Global Trade Serv. (GTS)
                                                            7.   EBP (e-Procurement)
                                                                                       10     17.   Strategic Sourcing (SRM)
                                                            6.   BI (Analytics)
                                                                                              16.   Marketing        (CRM)
           MRP
          5.                                                                      9           15.   Channel Mgmt. (CRM)
           Manufacturing
          4.
                                                                            8                 14.   Service Mgmt (CRM)
           Order to Cash
          3.
                                                                                              13.   Inventory Coll. (ICH)
           Procure to Pay
          2.                                                        7
                                                                                              12.   Supply Plan. (SCM)
           Financials
          1.                                               6
                                                                                              11.   Demand Plan. (SCM)
                3   4 5
          1 2




                                                                                                              Investment

 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 92
 mySAP ERP in Summary

                     Benefits of                           Upgrading to
                    mySAP ERP                              mySAP ERP




             Insight                                       License
             Adaptability                                  Landscape
             Flexibility                                   Lovely Industries
             Productivity

 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 93
     Further Information at SAP Service Marketplace

   mySAP ERP                                                     SAP R/3 Enterprise
    http://service.sap.com/erp                                     http://service.sap.com/enterprise
   SAP NetWeaver                                                 New Release Strategy
    http://service.sap.com/netweaver                               http://service.sap.com/releasestrategy

   Development News                                              Release Notes
    http://service.sap.com/developmentnews                         http://service.sap.com/releasenotes
   Upgrade Information Center                                    Online Help
    http://service.sap.com/upgrade                                 http://help.sap.com

   Upgrade Technology Tools                                      Upgrade Focus Group
    http://service.sap.com/upgradetech                             http://service.sap.com/ufg

   Maintenance Strategy                                          Safe Guarding
    http://service.sap.com/maintenance                             http://service.sap.com/safeguarding

   High Tech                                                     SAP Best Practice for HT
    http://service.sap.com/hightech                                http://help.sap.com/content/bestpractices/indu
                                                                   stry/bestp_industry_ht.htm

     SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 94
mySAP ERP
for High Tech
    mySAP ERP Transition – License View

                                                                  mySAP Business Suite contract
                                                                       (formerly „mySAP.com contract‟)
mySAP Business Suite
     contract                                              …includes functionality in ERP, SCM, CRM, PLM, and SRM, all
                                                                          enhanced by SAP NetWeaver.
                                                                   >Available to existing and new customers<



 mySAP ERP contract
                                                                          mySAP ERP contract
                                                           … includes functionality for analytics, finance, human capital
                                                               management, operations and corporate services, all
                                                                         enhanced by SAP NetWeaver.
                                                                   >Available to existing and new customers<


                                                                             SAP R/3 Contract
      SAP R/3 contract
                                                                      …includes the functionality of SAP R/3
                                                                             and SAP R/3 Enterprise.
                                                                      >Available to existing customers only<
          License View




 SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 98
      Extendibility of mySAP ERP to mySAP Business Suite

mySAP ERP Capability                                                mySAP Business Suite Capability
 Complete cycle for order-to-cash logistic                         mySAP CRM offers additionally:
  operations and Customer Service
                                                                     Marketing Campaign Management
 SAP Internet Sales in mySAP ERP provides an e-
                                                                     Lead, Opportunity and Contact
  commerce platform to sell products over the

                                                              CRM
                                                                      Management
  Internet.
                                                                     Multichannel Sales and Service
                                                                    …
 ERP is enabled with the full capacity of managing                 mySAP PLM offers additionally:
                                                              PLM
  the product development along
                                                                     Audit Management
  the entire life cycle.
 ERP provides high-profile MRP and full-scale                      mySAP SCM offers additionally:
  Production Execution, Inventory and Warehouse
                                                                     Supply Chain Design
  Mgmt., and Transportation Execution.

                                                              SCM
                                                                     Supply Network Planning
                                                                     Global ATP
                                                                     Collaborative Demand Planning
                                                                     Transportation Optimization, …
 Complete cycle for purchase-to-pay logistic                       mySAP SRM offers additionally:
  operations
                                                                     Supply Strategy Development
 ERP provides full-scale Self-Service Procurement
                                                                     Strategic Sourcing (supplier qualification,

                                                              SRM
  scenario for MRO purchases.
                                                                      RFX, auctions)
 Supplier Order Collaboration for MRO
                                                                     Central Source of Supply Determination
 Catalog Content Management
    SAP AG 2005, SAP ERP for High Tech /Stefan Gerber / 99

				
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