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SAP Future Directions: 2003 and Beyond

Joshua Greenbaum, PrincipalEnterprise Applications Consultingwww.eaconsult.com

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Agenda

SAP’s Premises for the (Near) Future

X-Apps

CMDM

Conclusion

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Technology and Applications: Drivers and Assumptions

The Infrastructure is Largely In Place

Heterogeneity is Reality

Interoperability Standards (XML, WS,

etc.) Are Coming

Business Processes Are The Value-Add,

All Else is Becoming a Commodity

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Business Consequences

No More Big Bang

Economic Buyer is Line of Business, Not

CIO

Average Deal Size Dropping, Volume Is

Essential

Upselling the Customers is Job #1

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The Solution: Leverage Your Investment

Low-Cost of AcquisitionSmall Technology FootprintLow-Cost, Rapid ImplementationLeverage Existing Technology and

Business Investments Integrate To Existing InfrastructureRapid ROI: Year One

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X-Apps

The Ultimate LYI Product

The Composite, Cross-Application, Meta-App

The Future of Software Development and Delivery?

SAP’s Competitive (so far Slideware) Advantage

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X-App Defined

Any Application that Uses Data and

Business Processes From Other

Applications and Data Sources to

Provide Value-added Functionality

Above and Beyond Existing

Applications and Infrastructure

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X-App Archetype: Trading Desk Merge Data….

• Trading Data

• Chat Rooms

• News/Weather

And Processes ….• Transfer Funds

• Buy

• Sell

And Create New Functionality• Buy on Calculated Exception/Trigger/Event

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X-App Applications Architecture

Source: SAP

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X-App Business Processes

Resource and Program Management• Project Portfolio Management

• Project Execution

• Staffing Resources Assignment

• Adv. Skills Management

Employee Productivity• Strategy Alignment

• Enable Company Agility

• Increase Productivity

• Reduce Costs

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X-App Business Processes

Mergers and Acquisitions• M&A Project Management

• Deal Management

• New Company Management

• Project Execution

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X-App Technical Architecture

Source: SAP

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X-App IssuesThree Kinds of X-Apps

• SAP X-App

• ISV/SI X-App

• Your X-App

The X-App SDK: When, What, How Much?

X-App 3rd Party Market: Certification, Value, Services

X-App Vs. Third Party Best-of-Breed Apps

X-App Vs. Start-up “Killer Apps”

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Can SAP Deliver? Watch For…

Compelling X-Apps

The Adapter Problem

The Software to Services Ratio

Partner Certification

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Collaborative Master Data Management

The Infrastructure Superstructure

The Universal Data Source: Repository of

Master Data Definitions

Harmonize All the Data Sources: One

Version of the Truth

LYI Enabler

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CMDM Defined One Version of the Truth

• Single Source for All Data: SAP and non-SAP

• Single Administrative Site for All Data Management

• Repository of Master Data Objects That Define Specific Business Practices: Business-Specific Units of Measure

Connect Heterogeneous Environments• Linking Applications, Maintaining Consistent Data Among

Different Data Sources/Applications

Control Corporate Data• Central Management and Process Control For All Systems

(Internal and External)

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CMDM Architecture

Source: SAP

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CMDM ComponentsMaster Data Objects: Define the Business Objects

• Product Master

• Business Partner

• Product Structure

• Organizational Structure

Data Services: Manage the CMDM Environment• Data Management Services

• Change Management

• Distribution

Others• Content Integration, Data Staging (ODS), Adapters, Etc.

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CMDM Technology Runs on Web Apps Server (WAS)

Requires Exchange and Third Party Adapters

Workflow is SAP-Only

BW Can Be Used, But Master Data in CMDM

Portal Interface

Database Independent

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CMDM Q3 Deliverables

Master Data Server (Object Definition

and Deployment)

Content Integration

Exchange

Adapters

CMDM Database

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CMDM: What’s the Value?

De-duping• Huge Cost In M&A and Dynamic Businesses

• Non-Management Costs Can Be Even Larger: Accuracy in Operations, Support and Service

• SAP ROI Analysis: $4 million in Savings

Lower Overall Integration Costs

Consolidation and Collaboration• Economies of Scale for Data Can Match the

Economies of Scale in the Rest of the Enterprise

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CMDM: What’s the Catch? Not Until Q3

Best for R/3 Centric to Start

Master Data Definitions Require A Harmonization

Process FIRST (Remember BPR?)

Adapters, Adapters, Adapters

Horizontal To Start, But Better As a Vertical

The More You Do, the More You Integrate

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CMDM: How To Get Ready

Think Master Data Objects

Think Process First: What are Real-world

Benefits

Don’t Integrate Everything (Remember

the Data Warehouse Overruns)

Get To Know Portal, WAS, Exchange, BW

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Conclusion #1: Glass Half Full

SAP Has Some Good Stuff Coming

There is Actual Value Possible

User Risks Will Be Relatively Low

SAP is Playing Leadership Position

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Conclusion #2: Glass Half Empty

All is Slideware Until Proven Otherwise

The Only ROI That Matters is Your Own

Low Risk Doesn’t Mean No Risk

Technology Leadership Is For Vendors,

Not for All Users

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Conclusion #3: The Bottom Line

X-Apps and CMDM Are in Your Future

One Way or Another

SAP Has An Incumbency Advantage, But

Won’t Be the Only One

Real Competitive Advantage from IT is

Still Possible