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Analytic Applications by SAP: Delivering Business Insight

Steve Singleton, Director, Global SAP NetWeaverInitiative, SAP America, Inc.

© SAP 2004, 2

5 Key Business Challenges

1. Execution not aligned with Corporate StrategyCorporate strategy not communicated clearlyIndividual objectives not aligned with strategyPoor measurement, and no corrective actions

2. Ineffective Decision Making ProcessesDecisions delayed, or made on ‘gut feel’ onlyKey stakeholders not involvedSolid information only available to small ‘elite’

3. Increasing Competitive- and Market PressuresLack of insight into markets and trendsOpportunities frequently missed

4. Compliance RequirementsCalls for transparencyIncreasing criticality of trustworthy data

5. Budget ConstrainsNeed to do more with less, and need to justify expenditures

© SAP 2004, 3

Challenge 1: Execution Not Aligned With Corporate Strategy

“Less than 10% of strategies effectively formulated are effectively executed”Fortune

Aligning Strategy with Execution requires:• Common set of Metrics, KPI’s and Benchmarks• Balanced Scorecards• Solid and integrated planning framework

Corporate Performance Management

© SAP 2004, 4

Challenge 2: Ineffective Decision Making Processes

Improved Decision Making requires:Reliable, up-to-date and easily accessible informationContext, Guidance, and CollaborationInformation actionable and in consumable formatSelf Service and Information Democracy

Source: SAP

© SAP 2004, 5

Challenge 3: Increased Competitive- and Market Pressures

“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself, but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy or yourself, you will succumb in every battle.”

Sun Tsu, The Art of War, 500 B.C.

Account Planning

Opportunity discovery and exploitation requires:• Predictive Analytics, Planning & Forecasting• Analytics embedded into Applications• Closing the Loop via Analytical Application

Smart people using smart applications

© SAP 2004, 6

Challenge 4: Compliance Requirements

“The keys to meeting Sarbanes-Oxley requirements will be the timeliness of the reporting, as well as the validation that the system can detect and report the ‘material events’.” Gartner G2, 2004

SAP Management of Internal Controls (MIC) Reporting, Section 404

Compliance and Corporate Governance calls for:• Transparency, and single version of truth• Trustworthy and auditable data (historic and current)• Right-time reporting, exception notification and alerts

Reliability, completeness and transparency

© SAP 2004, 7

Challenge 5: Budget Constrains

“[ETL] processes ... Can absorb up to 70% of the time spent on a typical DWH project.” DM Review, 3/01

“… it is clear that a single architecture will yield a better ROI, is more likely to come online faster, and is less likely to fail, undeniably.” Neil Raden, Analyst, 1/04

Calls for IT budget justification and doing ‘more for less’ requires:• Out-of-the-box templates and analytical applications• Integration with applications, and openness for change• Proven methodology and comprehensive support infrastructure

Buy versus build, from viable partner

© SAP 2004, 8

Meeting the 5 Key Business Challenges

2. Ineffective Decision Making ProcessesSelf Service and Information Democracy

1. Execution not aligned with Corporate StrategyCorporate Performance Management

3. Increasing Competitive- and Market PressuresSmart people using smart applications

4. Compliance RequirementsReliability, completeness and transparency

5. Budget ConstrainsBuy from a strategic partner, don’t build

A smart business requires a complete, end-to-end, reliable and open BI Platform.

© SAP 2004, 9

The Business Intelligence Platform

Web Presentation/Portal/Mgmt Reporting

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Architecture Source: Gartner(“Managing Corporate Performance – What you need to know”; Lee Geishecker & Frank Buytendijk, 4/04)

© SAP 2004, 10

SAP Delivers The Business Intelligence Solution

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Process Integration

SAP SEM

Powered bySAP NetWeaver

SAP NetWeaver

People Integration

Information Integration

SAP delivers the complete, end-to-end, reliable and open BI Solution.

© SAP 2004, 11

The SAP BI Advantage

Enabling of accurate, faster and actionable information

Compliance with industry regulation thus mitigating business risks

Connecting Corporate Goals, Objectives and Strategies to an individual contributor level

Information Democracy and Self-Service

Predictive analytics and smarter applications to grow the business

Quick wins and faster Return on Investment

SAP NetWeaver delivers the complete, end-to-end, reliable and open BI solution,

enabling the smart enterprise.

Analytic ApplicationsAtlanta Business Forum 2005