Unlocking Innovation Mark Frear Business Development Director, SAP NetWeaver® SAP Australia and New Zealand
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Unlocking Innovation
Mark FrearBusiness Development Director,
SAP NetWeaver®SAP Australia and New Zealand
Agenda
• Give you some context and research findings around innovation
• Describe how SAP is innovating itself to meet customer needs
• Look at some case studies• Conclude
Innovation:From the Latin, innovare, meaning to renew
– The process of making changes to something established by introducing something new.
Inertia:From the Latin, iners, meaning idleness
- In physics, the resistance of a body to any alteration in its state of motion
Innovation leads to brand recognition, cash and profit
MAKE IT STRATEGIC TO DELIVER PROFITABLE, SUSTAINABLE GROWTH.
INNOVATION HAPPENS EVERYWHERE
Globalization
! Right sourcing! “Out-tasking”! Eco-system control
New Process Models
! Shared-services! Virtual teaming! Collaboration
Industry Consolidation
! International M&A! More regulations! New process standards
Innovation helps us fight the challenges we all face from…
82% of executives in all sectors expect business to be demand – rather than supply-driven
54% of executives see adapting models as more critical than new product / service development
What is the greater source of Competitive Advantage in 2010
Firms’ ability to evolve business models will become a key source of competitive advantage.
Total US Europe Asia
46%53%
47%44%
54%47%
53%56%
New products & services New business models
Source: Economist Intelligence Unit Survey – 4000 questioned Senior Executives
Business in 2010 Study
Market TrendsInnovation is the Next Big Challenge 1
Innovation Requires Orchestration from the Top 2
Source: 1 Bain & Company: Management Tools & Trends, 2005 – Trend Analysis Highlights
Source: 2 IBM GBS: Expanding the Innovation Horizon: The Global CEO Study 2006
I.T. is Coming of Age 1
Business Model Innovation Matters 2
External Collaboration is Indispensable 2
Minutes
Hours
Weeks
Months
1960s 1990s 2000s1940s1920s1900s 1980s
Days
Years
Processexecutiontime
BusinessProcessChange
ProductLifecycle
The next frontier: reducing “time to change”
Source: Gartner
The flow of continuous innovation is a process itself
Inve
ntio
nZo
neDeployment
ZoneO
ptimization
Zone
HandoffHandoff
IT should support innovation in different ways
Other processes needed because you are in business
Processes which deliver competitive advantage
Focus for IT is to create differentiation
•Flexibility and agility•Scalability•Visibility
Focus for IT to deliver productivity or efficiency in the business:
•Consistency•Standardised•Efficient•Best practices
CORE CONTEXT
Courtesy to G. Moore’s “Living on the fault line”
IT-POWERED BUSINESS INNOVATION
SAP: A CASE STUDY
FUNCTIONAL AREAINDUSTRIES
21%
22%
16%
19%
23%
13%
SAP#1
SAP#1
SAP#1
SAP#1
SAP#1
SAP#1FI
HR
SCM
CRM
SRM
PLM
CP / Retail
Discrete
Process
Fin.Services
Services
SAP#1
SAP#1
SAP#1
SAP#1
SAP#1
16%
27%
19%
20%
20%
19%Public
SAP#1
Market share data 2004 based on license revenues /preliminarySources: SAP Analysis 2005, based on preliminary data
SAP’s Process knowledge is extensive in any dimension
SAP is transforming to the next generation I.T. provider
Industrialization of the software industry
•Speed: Shorter time to volume•Efficiency: Systematic re-use across solutions•Quality: Unprecedented level of quality and scalability
ERP SCM CRM …
All-in-One New Solutions …
69% of the partsare the same
>50% of the processesare the same
‘‘A decade ago, SAP improved the way businesses operate. Now the company wants to change the entire software industry.
““We could have sat We could have sat back & waited for back & waited for the storm to pass, the storm to pass, but it never will,but it never will,””says Shai Agassi. says Shai Agassi. ““Instead, we Instead, we decided to lead it.decided to lead it.””’’Business Week, July 11, 2005
Executing on SAP’s Enterprise SOA strategy will change SAPand shape our industry
This is not (just) about winning market share, it is aboutaccelerating innovation and energizing industry growth
worldwide
We will define and establish undisputed leadershipin the emerging market for business process platform solutions,
accelerate business innovation powered by ITfor firms and industries worldwide
and thus contribute to economic development on a grand scale.
SAP’s mission statement
Co-Opetition
Trusted Ecosystem of Partners
Platform
Two aspects to deliver IT powered innovation..
Deliver “IT-Powered Business Innovation” for CustomersDifferentiate from competition through business innovationBoost productivity through best industry practicesEnsure business integrity and compliance
Business Process Platform
– Enterprise SOA– Enterprise services– Composite applications
– Alliance of leading vendors– Many ISVs– Collaborative innovation
SAP BasisSAP Basis
SAP NetWeaver®Application and IntegrationPlatform
SAP NetWeaver®Application and IntegrationPlatform
Business Process PlatformApplication, Integration and CompositionPlatform
Business Process PlatformApplication, Integration and CompositionPlatform
R/3R/3
SAP R/3Standardized business processesClient-ServerDistributed Processing
Business SuiteExtendibility through SAP NetWeaverAdaptive, end to end, streamlined processesERP II
1992 …. 2003
CRM ERP SRMEvolution
Business Process Platform
SOA platformComposition frameworkCommon business servicesGovernance
Enterprise ServicesEnterprise Services
2004 20062005
Evolution
We are moving from older technologies to Enterprise SOA
Process flexibility in today’s value networks
CONTINUOUS
IMPROVEMENT
COLLABORATIO
N
EVENT-DRIV
ENCONFI
GURABILIT
YEXTERNAL
INFO
INTEGRATIO
N
FLEXIB
ILIT
Y
SourceSource
Manu-factureManu-facture
SupplierIdent.
SupplierIdent. AssembleAssemble InvoiceInvoice
iSourceSource
DeliverDeliver
SERVICE P
ROVIDER
INTEGRATIO
N
OUT-TASKIN
G
Sell
Flexible innovation on top of a stable platform
Flexibility and extensibility
Model-driven solution building and adaptation
Reliable executionControlled process executionHigh ScalabilityHigh QualityMaintain Integrity of dataBreadth of functionalityFlexibly deployableCentralized maintenance
i
Business Process Platform
OtherApps
OtherPlatforms
OtherBusinesses
IndustryStandards
Application Components
CRM ERP SCM …Enterprise
ServiceRepository
300+ EnterpriseServices Stored in 1unified repository
Business Process Platform
myS
AP
200
5
OtherApps
OtherPlatforms
OtherBusinesses
IndustryStandards
SAP Partner CustomxApps
Application Components
mySAP ERP 2005 – The 1st services-enabled ERP
xAppsxApps
CRM ERP SCM …EnterpriseService
Repository
Portal Devices Office RFIDRendering
Bringing innovation to all sizes of companies
SAP Business One
Source: IDC Customer Segmentation Analysis; SAP Analysis
55.4 million firms
1.2 million firms
~20,000firms
~64,000 firms
mySAP All-in-One
mySAP ERP
IT-POWERED BUSINESS INNOVATION
CUSTOMER CASE STUDIES
• FACC is a privately held company with 922 employees
“Fischer Advanced Composites upgraded to mySAP ERP in forty five days. It could have not be accomplished without support from SAP.” Michael Dolejsi, Project Manager, FACC
Technical upgrade from SAP R/3 4.6C to mySAP ERP 2005 in 45 days
Consolidated server environment - reduced cost of IT
Full scope – sales, purchasing, corporate services, financials
Finance, sales, purchasing… upgraded in 45 days
$£ ¥€
mySAP ERP delivers a solid business platform
Bringing Innovation to all sizes of companies
SAP Business One
Source: IDC Customer Segmentation Analysis; SAP Analysis
55.4 million firms
1.2 million firms
~20,000firms
~64,000 firms
mySAP All-in-One
mySAP ERP
Qualified mySAP All-in-One is at the core of the portfolio
Edelweiss implemented mySAP ERP in 40 Days from scratch
Edelweiss is a subsidiary of UBS Swiss Bank that specializes in professional facilities management. That established itself as a legal entity on January 1, 2006
Edelweiss needed a system aided facilities management and ERP solution in order to meet legal and operational requirements following a spin-off from UBS.
New customer – needed ERP solution in 40 days
450 Users, 380 Mobile Users for Service Management
Needed integration to mobile asset management and CRM $£ ¥€
Full scope ERP – financials, human capital management, real estate, business intelligence
Using best practices speeds up implementation by 30%
SAP® Best Practices in New Zealand
SAP® Best Practices in New Zealand
SAP Safe Passage program allows anyone to move forward
PeopleSoft
JD Edwards
Siebel
might not always be supported
Migrate to a viable, long-term vendor with the SAP Safe Passage program:
SAP solutionsMaintenance services at reduced costInvestment protection Clear road map for implementation and migration.
License mySAP, and receive credit on existing PeopleSoft, JD Edwards or Siebel investments. License mySAP, and receive credit on existing PeopleSoft, JD Edwards or Siebel investments.
IT can address all processes with one platform
Other processes needed because you are in business
Processes which deliver competitive advantage
Focus for IT is to create differentiation
•Flexibility and agility•Scalability•Visibility
Focus for IT to deliver productivity or efficiency in the business:
•Consistency•Standardised•Efficient•Best practices
CORE CONTEXT
Courtesy to G. Moore’s “Living on the fault line”
10%Build
Hom
eG
rown
60%Buy
Services from SAP and ISVs
CR
M
ERP
…
60%Buy
Packaged Application
40%BuildCustom Code
CR
M
ERP
…
Hom
eG
rown
30%Compose
Composing new processes from lego blocksIn
the
pas
tT
oday
IT strategy (optimize)
Business strategy
Createorder
Checkinventory
Shipping BillingAccounting
Create Order recordSend a confirmation to the customerAdd the order to the production plan
BusinessLevel
ITImplementation
Enterprise Services
Web Services
Enterprise Services are defined at the business level. IT can decide how to supply the need ie "strategic decoupling"
IT strategy (optimize)
Business strategy
Createorder
Checkinventory
Shipping BillingAccounting
Delete Order recordSend a confirmation to the customerRemove the order from production plan
Enterprise Services are defined with consensus from customers, partners, ISVs and SAP
BusinessLevel
ITImplementation
ES described by customers, SAP and ecosystem – Open approach
Web Services delivered by SAP, ISVs and custom development
– Open approach
1,300+ ISV Products “Powered by NetWeaver”
18 Industry Titans are“Enterprise Services Ready”
5 Industry Value Networksare kicked off
10,000+in ANZ500,000 SDN Members WW
1Enterprise ServicesRepository
SAP has remade itself as the industry's honest broker. Rather than locking customers into its own products, SAP offers tools that tie competing packages into a seamless whole.
January 10th, 2005
“
CONCLUSION
Conclusion• Talked about the context of innovation
– Responding to challenges– It needs systematic focus and execution
• Case studies– SAP is transforming the way IT will be delivered– Adoption is much quicker than you think
• The IT ecosystem is at the heart of this
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