cloud computing & saa s, sap by design
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We are in the midst of a pronounced shift from client-server to Cloud computing. The economics of running your business on the Cloud are truly compelling, with significant cost advantages for both business apps as well as personal productivity apps. Track 1: Opportunities in Cloud Computing: An evangelist approach Track2 : 4 Steps to a Best Run Business Track3 : SAP strengthens product portfolio with Business ByDesignTRANSCRIPT
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Build Business On The Cloud, drive profits on the Ground
Webinar
Rohit Madhur - Director, SAP Business By Design
Tarun Gulati - Business Manager, SAP Business By Design
Rakesh Prasad - Solution Advisor, SAP Business By Design
30th September 2009
confidential© SAP 2008 / Page 2
1. Opportunities in Cloud Computing: An evangelist approach1.1. SaaS Market Opportunity1.2. Economic uncertainty1.3. Benefits of SaaS1.4. Key considerations for evaluating SaaS products
2. 4 Steps to a Best-Run-Business2.1. Key Obstacles to Growth2.2. Create and Track KPI’s2.3. The 4 Steps to a Best-Run-Business
3. SAP strengthens product portfolio with Business ByDesign3.1. Today’s Reality3.2. SME Product portfolio & positioning of SAP Business By Design3.3. SAP Business ByDesign
Agenda
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SaaS Market Opportunity
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Global Economic Uncertainty
Economic Environment
Revenue, Income
COGS, Margins
Cash flow, Liquidity
Slowing demand(spending cut-back, customers
postponing purchases)
Rising costs(inflation, energy/commodity
prices, healthcare costs…)
Reduced credit(tougher lending standards,
declining loan/line of credits)
Measurable Impact on Your Business
Lack of access to funds
Reduced cash flow
Rising inflation risks
High market volatility
Wave of consolidations
Government re-regulation
Declining consumer optimism
Translating into…
Source: - NFIB Small Business Economic Trends, October 2008
- The Conference Board Mid-Market CEO Challenge, 2007- Collateral Damage, The Boston Consulting Group, Oct 2008
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Benefits of SaaS
Time to Value • Up and running in as little as 6 weeks, see ROI quicker
Affordable & Predictable
• No equipment or capital, ~30% lower cost of ownership• Usage-based pricing means you control the costs• No need for costly infrastructure and excess capacity
Access to Latest Technology
• Enhancements delivered and managed seamlessly by provider – no worry about upgrades breaking systems
Configuration not
Customization
• Maturity of applications makes configuration possible• Simpler for business, with lower cost (no custom programming)• Based on Best Practices
Fewer Technical Resources
• Provider manages the application, hosts in secure, state-of-the-art data center which may otherwise be beyond reach
• Provider offers help, support and training
Focus • By outsourcing, company is free to focus on core competencies; onerous aspects of IT managed by the vendor who built it
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Key Considerations for evaluating SaaS products
Form an evaluation group that includes operations, Finance and IT
Expect the evaluation to take some time - understanding and evaluation of expected results
Understand the vendor's strategy and approach (i.e. point solution or are they offering an end-to-end solution)
Is the vendor proven and stable or a relative newcomer
Determine how their strategy fits with both your short- and long-term needs
confidential© SAP 2008 / Page 7
1. Opportunities in Cloud Computing: An evangelist approach1.1. SaaS Market Opportunity1.2. Economic uncertainty1.3. Benefits of SaaS1.4. Key considerations for evaluating SaaS products
2. 4 Steps to a Best-Run-Business2.1. Key Obstacles to Growth2.2. Create and Track KPI’s2.3. The 4 Steps to a Best-Run-Business
3. SAP strengthens product portfolio with Business ByDesign3.1. Today’s Reality3.2. SME Product portfolio & positioning of SAP Business By Design3.3. SAP Business ByDesign
Agenda
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Key Obstacles to Growth: Survey Results
Major Impediments to Growth
Reducing contract prices is a big obstacle to growth for 57% of SME’s in Asia Pacific
Rising cost of materials and services is another major impediment to growth, as accepted by 47% SME’s
High labor cost vis-à-vis competitors in other counties
Tight availability of Financing
confidential© SAP 2008 / Page 9
KPI Driven Business Management
Possible Objectives
Facilitate communication with customers Ensure customer satisfaction and loyalty
Cu
sto
me
r S
up
po
rt &
S
erv
ice
s
KPI‘s needed
Customer retention Time to resolution for problems Revenue per service order
Possible Objectives
Support continued business profitability Shorten lead-to-close cycle Expand the customer base
Sa
les
& M
ark
eti
ng KPI‘s needed
Marketing campaign effectiveness Sales revenue, pipeline and margins Sales force productivity
Possible Objectives
Manage organizational change efficiently Integrate HR business processes into other parts of the
business
HR
& P
eo
ple
KPI‘s needed
Number of employees and employee turnover Labor costs as a percentage of sales Revenue per employee
confidential© SAP 2008 / Page 10
KPI Driven Business Management
Possible Objectives
Increase accounting transparency Automate manual tasks to enable faster closes Maximize the efficiency of working capital Ensure compliance with local and international regulations
Fin
an
ce
KPI‘s needed
Cash flow and capital funding Profitability Total company value and worth
Possible Objectives
Minimize Project delays Maintain project profitability Increase the quality of service delivered
Ser
vice
s S
up
ply
ch
ain
KPI‘s needed
Productivity Service levels Service delivery time
confidential© SAP 2008 / Page 11
The 4 Steps to a Best-Run-Business
Anticipate Change
Build a flexible business model to manage and embrace changes that will invariable come
Quickly rollout new processes or adapt existing Business processes
Set your business to throttle up or down to meet rapidly changing and unpredictable customer requirements
360 degree visibility to make faster, smarter decisions
Faster decision making
Integrate different versions of truth into one system
Make decisions on facts, not on emotions or spotty communication
Increased productivity throughout the organization
Best Run Business Optimum utilization of resources Visibility to pinpoint inefficiencies and
capability to transform them into competitive advantage
Optimized operations and best practices extended to entire value chain
Minimize risk and Liability Seamlessly manage new regulatory
compliance Create KPI’s and consistently track
progress Embed metrics and reports into your
end-to-end processes Tighter control on financial
performance, product/service quality, delivery standards, SLA’s
Control your cost structure, end-to-end
Embed process controls to efficiently schedule resources
Automate routine tasks to strip out inefficiencies
Setup a collaborative, optimized team across your company
confidential© SAP 2008 / Page 12
1. Opportunities in Cloud Computing: An evangelist approach1.1. SaaS Market Opportunity1.2. Economic uncertainty1.3. Benefits of SaaS1.4. Key considerations for evaluating SaaS products
2. 4 Steps to a Best-Run-Business2.1. Key Obstacles to Growth2.2. Create and Track KPI’s2.3. The 4 Steps to a Best-Run-Business
3. SAP strengthens product portfolio with Business ByDesign3.1. Today’s Reality3.2. SME Product portfolio & positioning of SAP Business By Design3.3. SAP Business ByDesign
Agenda
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Today’s Reality for Many Midsize Companies:Point solutions, manual processes, spreadsheets
■ Need to improve profits■ Need to grow without disruptions■ Need to do it with limited cashflow and risks
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There Have Traditionally Been CompromisesIn deploying business solutions for midsize companies
Solution Depth
Adaptability
Implementation / Deployment
High Value
Solution Breadth
Cost of Ownership
IT Complexity
Affordability
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Situation Today Mix of Point “Solutions”
Mix of outdated systems, point “solutions” and spreadsheets
The New StandardSAP Business ByDesign
The affordable and most complete on-demand solution for midsize companies
SAP Business ByDesignNew solution – Design goal
Addressing the Needs of an Underserved Market
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For companies who need business software but don’t want to support a large IT backbone
• 10~100 employees• On-premise deployment• Traditional licensing• Go live in 6~8 weeks • General business functionality • 550+ add-on solutions, many
industry specific• Available in 20 languages and
40 country-specific versions
• 100 to 500 employees• SaaS deployment• Monthly subscription• Go live in 4~8 weeks • General business functionality
based on best practices• Available only in US, Germany,
France, United Kingdom,
China and India (2009)
• 100~2,500 employees• On-premise deployment• Traditional licensing• Go live in 8~16 weeks• 660+ industry-specific solutions• Available in 50+ countries
A comprehensive, integrated industry solution to power your
business end-to-end
For midsize companies with industry needs that want a
scalable foundation
A single integrated solution to manage their entire business
For small businesses who have outgrown their packaged accounting-only solutions
The best of SAP, delivered on-demand
NEW Fast-Start Program• Pre-tested, preinstalled solutions
• Predictable project scope
• Go live in 8~12 weeks
Where does SAP Business ByDesign fits in SAP’s SME Portfolio?
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SAP Business ByDesignAffordable, Predictable, Easy to Adopt
On-demand Always up-to-date software, managed by SAP experts
in world class data centers
Built in service and support Remote monitoring with automated support
User training and education Self-guided, self paced, context sensitive built-in
learning
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SAP Business ByDesign – Solution Map
Supply Chain Management Demand Planning Supply Planning Supply Control Outbound Logistics Control Execution Inbound Logistics Outbound Logistics Internal Logistics Physical Inventory Quality Assurance Production Control Analytics
Supplier Relationship Management Planning Key Performance Indicators Product Portfolio Supplier Base Purchase Requests & Orders Goods & Services Receipts Supplier Invoicing Sourcing & Contracting Self Service – Shopping Analytics
Human Resources Planning Key Performance Indicators Personnel Administration Time Administration Resource Management Self Service Analytics
Customer Relationship Management Products & Services Pricing Sales Planning Key Performance Indicators Account Management Marketing New Business Sales Orders Service Entitlements Service Desk Service Orders Field Services & Repair Customer Invoicing Analytics
Project Management Planning Key Performance Indicators Project Management Project Team Change Management Document Center Project Time & Expenses Cost & Revenue, Project Profitability Customer Invoicing & Analytics
Financial Management Financial Planning Key Performance Indicators General Ledger Receivables Payables Payment Management Cash & Liquidity Management Travel & Expenses Fixed Assets Cost & Revenue Inventory Valuation Tax Management Audits Analytics
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SAP Business ByDesignBenefits
IT
IT
ITIT IT
ITIT IT
IT
ITIT
Predictable, Affordable,
Manageable IT
360 DegreeSolution
Easy-to-Use and Adapt
1 2 3
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You can also write us on:-
Rohit Madhur – [email protected]
Tarun Gulati – [email protected]
Rakesh Prasad – [email protected]
ANSWERSQuestions &
http://www.sme.sap.com