application service provision for small and mid size companies
DESCRIPTION
Application Service Provision for Small and Mid Size Companies. Presentation to BCS North London Branch 21 February 2001. Paul Viney ASP Operations Manager SAP UK Ltd [email protected] Tel: 020 89 17 63 59. ASP for SME. Who is SAP? The SME Sector - what are the challenges - PowerPoint PPT PresentationTRANSCRIPT
Application Service Provisionfor Small and Mid Size
Companies
Presentation to BCS North London Branch21 February 2001
Paul VineyASP Operations Manager
SAP UK [email protected]
Tel: 020 89 17 63 59
SAP AG 2001, Title of Presentation, Speaker Name 2
ASP for SME
Who is SAP?
The SME Sector - what are the challenges
mySAP Hosted Solutions - SAP’s ASP Initiative
SAP’s Solution
Case studies and ASP Experiences
Who is SAP?
The SME Sector - what are the challenges
mySAP Hosted Solutions - SAP’s ASP Initiative
SAP’s Solution
Case studies and ASP Experiences
SAP AG 2001, Title of Presentation, Speaker Name 3
SAP Today
SAP AG in 2000 revenues: Euro 6.26 billion 3rd largest independent software vendor in the world Market leader in inter-enterprise software solutions
13,500+ customers in 120+ countries 36,000+ installations 10+ million users
Focused on users in all enterprises regardless of size Increased customer satisfaction and stronger customer loyalty Heavy investment into SAP’s worldwide business community 24,100+ SAP employees (as per December 2000)
SAP AG 2001, Title of Presentation, Speaker Name 4
SAP Evolution of Business
Cost reduction and efficiency through integration of business processes
Improved effectiveness through cooperation along the supply chain
Value creation through collaboration within business communities
Enterprise ResourcePlanning
Inter-EnterpriseCo-operation
e-CommunityCollaboration
Early 90s New MilleniumMid 90s
SAP AG 2001, Title of Presentation, Speaker Name 5
ASP for SME
Who is SAP?
The SME Sector - what are the challenges
mySAP Hosted Solutions - SAP’s ASP Initiative
SAP’s Solution
Case studies and ASP Experiences
SAP AG 2001, Title of Presentation, Speaker Name 6
Challenges facing the SME Sector
Lack of available IT resource for business systems projects now and in the future recruitment retention
Funding of IT projects Cost of capital asset purchase and it’s effect on the company
Access to world class integrated business applications I may be small but I still need a system that gives me what I need
What happens when I grow my company How scaleable is the solution
System security is an issue - I don’t have the skills in-house Backups System access Support Disaster recovery planning
SAP AG 2001, Title of Presentation, Speaker Name 7
ASP for SME
Who is SAP?
The SME Sector - what are the challenges
mySAP Hosted Solutions - SAP’s ASP Initiative
SAP’s Solution
Case studies and ASP Experiences
SAP AG 2001, Title of Presentation, Speaker Name 8
HostedSolutionsHosted
Solutions MarketplaceMarketplace
WorkplaceMy world at my desktop
WorkplaceMy world at my desktop
BusinessApplicationsFor collaborative
commerce
BusinessApplicationsFor collaborative
commerce
mySAP Hosted Solutions
One Step Business
ApplicationHosting
ApplicationService
Provision
ApplicationManagement
MarketplaceHosting
SAP AG 2001, Title of Presentation, Speaker Name 9
mySAP Hosted Solutions - definitions
Application Service ProvisionASP combines software, implementation, infrastructure, service and support, to create solutions that are quickly implementable and reusable. The AS Provider also manages the entire customer relationship. One to many model, with minimal custom configuration, delivered as a service and priced on a rental basis. Customer does not own the license.
Application HostingApplications run and maintained in a central processing facility when the customer requires configuration beyond the scope of ASP offering. License owned by customer.
Application ManagementProviding post-implementation support services either on-site or from a remote location.
MarketPlace HostingA service platform for business communities of individual partners, customers, and vendors to perform business-to-business processes and collaboration, as well as business-to-consumer transactions.
SAP AG 2001, Title of Presentation, Speaker Name 10
mySAP Hosted Solutions
Enables hosting solutions to our Customers and Partners
Rental model for software deliveryto meet the needs of an ASP solution
SAP Hosting can offer hosting services direct to customers
SAPHosting supports, enables and certifies partners Preconfigured solutions Training
European ASPs include: BT, Deutsche Telecom, iFusion, Planet.com
SAP AG 2001, Title of Presentation, Speaker Name 11
ASP for SME
Who is SAP?
The SME Sector - what are the challenges
mySAP Hosted Solutions - SAP’s ASP Initiative
SAP’s ASP Solution - “Connect & Go”
Case studies and ASP Experiences
SAP AG 2001, Title of Presentation, Speaker Name 12
Rapid implementation Solution is pre-configured to
support the processes of the smaller and mid size company or business unit
Typical time to go live 2 weeks to 2 months
Cost savings start at go live - faster return on investment.
“Connect and Go” ASP - benefits
SAP AG 2001, Title of Presentation, Speaker Name 13
Future-proof• As your company grows, so your
solution grows with you - proven solution 2 - 2000 users on the same platform
• Software upgrades / legal changes delivered as part of the ASP / hosting service
• Customer still benefits from SAP’s continued software development
“Connect and Go” ASP - benefits
SAP AG 2001, Title of Presentation, Speaker Name 14
“Connect and Go” ASP - benefits
• You manage the “I”, the ASP / hosting partner manages the “T”
• Hardware redundancy not a customer issue
• System management in the hands of experts
• Customer’s IT staff free to focus on strategic information management
SAP AG 2001, Title of Presentation, Speaker Name 15
ASP - Deployment Cost model
Customer SoftwareLicence
Hardware Support Implementation Comment
In House Buy Buy In-house In-house /Partner
High initial capital spend.Effects ROCE
Outsourced Buy Buy Outsourced Outsourced High initial capital spend.Effects ROCE
Hosted Buy Rented Outsourced Outsourced Software capitalised. Hardwarerented.
ASP Rented Rented Rented Delivered byASP
Cost amortised over rentalperiod. Cost is expense item
Total Cumulative Cost over time
0
20
40
60
80
100
120
140
160
Time
Co
st
In House
Outsource
Hosted
ASP
Total Cumulative Cost over time
0
20
40
60
80
100
120
140
160
Time
Co
st
In House
Outsource
Hosted
ASP
SAP AG 2001, Title of Presentation, Speaker Name 16
ASP for SME
Who is SAP?
The SME Sector - what are the challenges
mySAP Hosted Solutions - SAP’s ASP Initiative
SAP’s Solution
Case studies and ASP Experiences
SAP AG 2001, Title of Presentation, Speaker Name 18
Maritime Cargo Processing plc, Great Britain
“The delivery of SAP R/3 software via the BT BusinessManager application software provider service has given us access to a range of software that we would not normally consider cost effective.”
David CopseyFinancial Controller
http://www.mcpplc.co.uk/
Maritime Cargo Processing was set up to
manage, market and develop the advanced
port community system known as the
Felixstowe Cargo Processing System (FCPS).
FCPS was launched at Felixstowe in 1984 and
MCP was set up the following year to control
and develop the system. It now also
specialises in promoting and implementing
integrated port information systems in the UK
and abroad. MCP regularly undertakes
consultancy services to advise on the benefits
of such systems and their implementation
elsewhere in the world and has undertaken
work on behalf of the World Bank and the
European Commission. With 17 employees
MCP generates sales of £3m.
“Leave System Management in the Hands of the Experts”
SAP AG 2001, Title of Presentation, Speaker Name 19
Maritime Cargo Processing plc, Great Britain
David Copsey also said“I can leave the worry of system management, upgrades and ongoing support in the hands of the ASP, allowing me time and freedom toconcentrate on financial management.”
Details
Maritime Cargo Processing plc went live in December 1998, as the inaugural customer of the BT BusinessManager hosted application service.
Scope of the project was Financial Management, and has since been expanded to include Asset Management.
The implementation took just 36 hours to complete, making use of SAP UK’s SME product “Connect and Go”, delivered through the BT BusinessManager service.
2 users access SAP on a day-to-day basis.