SAP Business One OnDemand for Partners Value Proposition and Partner Opportunity February 2013
SAP Business One OnDemand for Partners Value Proposition and Partner Opportunity
February 2013
© 2011 SAP AG. All rights reserved. / SAP Business One
2 Confidential
Purpose of this document
This document provides an overview of SAP Business One OnDemand’s
market opportunity and value proposition for partners, including:
1. Market Opportunity
2. B1 onDemand Overview & Positioning
3. B1 onDemand Partnering
4. Partner Edge Detail
5. Engaging with SAP
6. Partner Enablement
7. Partner Add-ons and Innovations
8. Transitioning from SbH to OnDemand Model
This deck is not for external use. It is
intended for prospective SAP OnDemand
partners.
© 2011 SAP AG. All rights reserved. / SAP Business One
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1. Market Opportunity
2. B1 onDemand Overview & Positioning
3. B1 onDemand Partnering
4. Partner Edge Detail
5. Engaging with SAP
6. Partner Enablement
7. Partner Add-ons and Innovations
Agenda
© 2011 SAP AG. All rights reserved. / SAP Business One
4 Confidential
Market potential for ERP in the cloud SMEs are a high-growth market
SaaS and Cloud ERP Trends in 2011
Only 9% of current ERP deployments use the
SaaS model, compared to 72% on-premise. But
that is changing and SMBs are leading the way.
SMB External IT Spending Worldwide
(2008–2014)
By 2014, the SMB market is projected to grow to
more than $1 trillion, with a five-year compound
annual growth rate (CAGR) of 5.7%.
17%
8%
2%
0%
5%
10%
15%
20%
Small enterprises Midsize enterprises Large enterprises
% ERP deployments in SaaS model
378
298 354
5.2% 5.8%
6.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
0
100
200
300
400
500
Small businesses
(1-99 employees)
Low-end midsize businesses (100-499
employees)
High-end midsize
businesses (500-999
employees)
IT spendings in 2014 $B
Source: Aberdeen Group “SaaS and Cloud ERP Trends, Observations and Performance
2011”.
Source: Gartner Dataquest “Forecast Analysis: Small-and-Midsize-Business External IT
Spending, Worldwide, 2008-2014, 3Q10 Update”.
© 2011 SAP AG. All rights reserved. / SAP Business One
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Small
Business
Mid-Sized
Business
Currently use Cloud/SaaS 13.4% 35.9%
Plan to Use in Next 12 Months 13.5% 31.5%
Interested, but No Plans 40.6% 13.9%
Not Interested 15.9% 10.3%
Don’t know/No answer 16.6% 8.4%
U.S. SB vs. MB current and planned use of cloud/
Software as-a-Service 2011
Source: IDC’s SMB Survey 2011
© 2011 SAP AG. All rights reserved. / SAP Business One
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49%
37%
13%
19%
16%
16%
11% 15%
11% 13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Today 24 Months
Public Cloud
Private Cloud - Hosted
Outsourced IT
Private Cloud Inhouse
Traditional IT
Q. Please estimate how much of your company's IT budget will be allocated to buying
and managing these different types of IT services
IDC NA Cloud Computing Survey, January 2011 n=603
Public cloud is
transformative and
challenges all our notions
about how IT is bought,
staffed, operated, and
capitalized
Private cloud is
evolutionary for the vast
majority of enterprises,
and the likely on-ramp to
cloud for the next 24
months
Hybrid approaches to IT
delivery are already a
standard, but cross-
platform management is
the next frontier
+12%
Cloud adoption increasing
Source: IDC Cloud Survey (unpublished), December 2010 n=603
© 2011 SAP AG. All rights reserved. / SAP Business One
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SMEs are looking to benefit from cloud deployments
Provide managed IT
infrastructure with minimal
investment to free up resources
Large upfront capital
expenses become
predictable operational costs
Increase business agility
and scale effortlessly as
business grows
Ability to securely store
and access data
regardless of location
Lower total-cost-of-
ownership by pooling
resources
Streamline
operations and increase
business insight
© 2011 SAP AG. All rights reserved. / SAP Business One
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1. Market Opportunity
2. B1, B1 onDemand Overview & Positioning
3. B1 onDemand Partnering
4. Partner Edge Detail
5. Engaging with SAP
6. Partner Enablement
7. Partner Add-ons and Innovations
Agenda
© 2011 SAP AG. All rights reserved. / SAP Business One
9 Confidential
SAP Business One:
Proven success with SMEs and subsidiaries worldwide
34,000+ SAP Business One customers
1,500+
LE affiliates running SAP Business One
80+ Countries running SAP Business One
40 country localizations, 27 languages
Dedicated to helping our customers Run Better
-
© 2011 SAP AG. All rights reserved. / SAP Business One
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Enhance solution enablement for partners
Cover standard business processes end-to-end
Orchestrate integration and collaboration
Run completely in-memory technology
Manage TCO
Extend the solution scope
Full flexibility on deployment
SAP Business One:
Delivering Innovation, Flexibility and Customer Choice
© 2011 SAP AG. All rights reserved. 11 Confidential
SAP Offers SME Customers Choice
Midsize
Companies
Small
Businesses
Most affordable:
Ideal for growing SE needing an entry-level ERP;
Available on-premise or on-demand (hosted by partners)
Easiest to consume:
Ideal for ME companies
preferring “no IT”;
Available on-demand only
Most scalable:
Ideal for ME companies
with highly industry-specific needs;
Hosting option available
On Premise Cloud/On-Demand
© 2011 SAP AG. All rights reserved. / SAP Business One
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SAP Business One OnDemand
SAP Business One OnDemand solution is a cloud-based, integrated
business management solution designed specifically for small businesses
or subsidiaries of large enterprises, offered exclusively through partners
Complete SAP Business One is an end-to-end solution offering financials,
customer relationship management, inventory management
functionality and more (all essential business functions come from
SAP or partners)
Simple Easy to set up, use, and customize
Scalable As business needs change, leverage pre-integrated partner
solutions
Affordable Competitively priced, get started with just a few users
Benefits
© 2011 SAP AG. All rights reserved. / SAP Business One
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Value of running SAP Business One in the cloud
Choice Run SAP Business One on-premise or in the cloud
Ease Let SAP’s partners host and manage the system
Flexibility Our solution adapts and scales with your business
Cloud
SAP offers an affordable business management solution that provides
Choice, Ease, and Flexibility
© 2011 SAP AG. All rights reserved. 14 Confidential
SAP Business One OnDemand partners New partnerships
SAP Business One OnDemand provides partners the opportunity to give
customers choice of deployment. Partners benefit by strengthening and
expanding their portfolio of offerings while simplifying and expediting
customer delivery, increasing share of wallet and providing new services.
Partners delivering Business One for the first time:
Help customers realize the benefit of consolidating deployment, support and
services/sales touch points
Offer SAP Business One in a hosted environment
Provide ability to scale globally with ease
Extend a full suite of services, thus increasing share of wallet in current and
prospective accounts
© 2011 SAP AG. All rights reserved. 15 Confidential
Partnership model for SAP Business One OnDemand Business opportunities for new partners
Infrastructure
Partners
Provide hosting
services for customers,
typically a data center
Manage and maintain
customer software
solution at remote site
Can cover several
countries
Value Added
Resellers
One point of
accountability for all
service needs
Ensure smooth go
live and are often
main point of
contact
Strategic
Partners
Offer end-to-end services
(e.g., hosting, cloud
infrastructure and support)
One point of accountability
for all service needs
Examples: Hungarian
Telecom and Seidor
© 2011 SAP AG. All rights reserved. 16 Confidential
The Business One OnDemand Model
subcontracting
Strategic partners
Infrastructure/
hosting provider
Value Added
Reseller
Business One
OD customer Customer contract
Customer contract
subcontracting
Partner contract
Partner contract
Infrastructure Partner
certification
Business One
OD customer
© 2011 SAP AG. All rights reserved. 17 Confidential
SAP Business One OnDemand:
VAR Partnership
Value Added Resellers sell the packaged offering with implementation
and support services as a package to their customers.
They work with Infrastructure partners in a cooperative GTM
approach to deliver OnDemand solutions.
VARS can focus on the implementation and pre-sales. Hosting and
software maintenance is fully transparent to them and handled by the
Data Center
VAR partners can be from various countries, focus on specific industries,
provide support to customers locally (and in local language)
Central application management ensures that the whole landscape is up
to date and all updates are managed centrally which lowers the TCO
Ensure add-ons are sufficiently tracked and updated between VARS and
Infrastructure partner to ensure customer continuity
© 2011 SAP AG. All rights reserved. 18 Confidential
SAP Business One OnDemand:
Infrastructure Partnership
Certified Data Center provides hosting infrastructure without any SAP
Business One installation or services.
Provides Data Center Provider and SAP Business One Partner clear
revenue and responsibility delineation
Clear chain of responsibility
Potential VAR partner OnDemand solution branding
Requires SAP Business One partner to build expertise in cloud
provisioning technologies and processes
Data center can enable all SAP Business One OnDemand Business
models, as required
Upside potential with Add-On packages
© 2011 SAP AG. All rights reserved. 19 Confidential
SAP Business One OnDemand:
Strategic Partnership
Strategic Partners deliver SAP Business One and all services
(implementation & support) in one package directly to customers.
Partner serves as one stop location for all customer needs
Strategic Partners are globally present, with ability to easily scale to
meet customer expectations
Data Center has a full control over installed SAP Business One
components
Manages all updates / upgrade of SAP Business One landscape
Can fully utilize and share all HW and SW resources among multiple
customers
Central application management ensures that landscape is up to date
and all updates are managed centrally, thus lowering TCO
© 2011 SAP AG. All rights reserved. 20 Confidential
Responsibilities Strategic
Partner
Infrastructure
Partner VAR
Marketing
Branding
Selling
Implementation ()
Hosting ()
L1/L2 support ()
L3 support
Invoicing
() = included / not included, depends on Partner
* = See appendix for hosting requirement for B1 Cloud certification
Linked
GTM
Partner profiles
© 2011 SAP AG. All rights reserved. 21 Confidential
1. Market Opportunity
2. B1 onDemand Overview & Positioning
3. B1 onDemand Partnering
4. Partner Edge Detail
5. Engaging with SAP
6. Partner Enablement
7. Partner Add-ons and Innovations
Agenda
© 2011 SAP AG. All rights reserved. 22 Confidential
Partnership Benefits
How You Benefit
Provide new business models to
existing customers
Enter new markets
Leverage proven and established
Business One on premise success
Up-sell opportunity
Utilize SAP marketing and branding
for your own efforts
Extend your solution portfolio
What SAP Provides
Training
Local product experts to help provide
sales support in all regions
Marketing content, programs and
Tools
Exposure to SAP Customer Base
Access to partner ecosystem to
expand your market reach
© 2011 SAP AG. All rights reserved. 23 Confidential
Grow Faster
Award winning program that that helps
partners expand market opportunities and
drives customer success
Accelerate Engagement
Sales marketing, program and technical
resources that ensure effective SAP
engagement opportunities and drives
customer success
Enhance Collaboration
Partnership tools to provide transparency and
increase collaboration
© 2011 SAP AG. All rights reserved. 24 Confidential
Program Benefits
Interactive Collaboration
workspace
• One global partner program
framework
• Manage My Partnership tool
• Differentiation with Validated
Expertise designation (VARs)
• Access to SAP partner
network
Different Partnership options
with increasing benefits
• Engagement scenarios based
on your potential
• Recognition as part of the SAP
network at all levels
• Partnership opportunity that fits
your capabilities and objectives
Continuous education &
portfolio expansion
•Free level 1 e-learning
•Access to expert sessions
•Solution validated expertise
•SAP solution portfolio to
expand your business to
different markets and
industries
© 2011 SAP AG. All rights reserved. 25 Confidential
VARs have three different partnership levels
with related benefits
Standard Benefits Package
General Program Benefits Business Enablement Benefits Technical Support
Partner Education Marketing and Selling Support Solution Development Support
All the benefits of Bronze
Advisory Boards
Increased MDF
Increased Service Entitlements
Standard Benefits Package
SW Discount
MDF (if available in region)
Service Entitlements
All the benefits of Silver
“Gold” Logo Branding
Highest MDF
Highest Service Entitlements
One program level
for all VARs
regardless of how
many products sold
© 2011 SAP AG. All rights reserved. 26 Confidential
Region Specific Program Information provides
Requirement, Benefit, and Value Point Details
Get acquainted with your regional requirements - a quick reference.
© 2011 SAP AG. All rights reserved. 27 Confidential
1. Market Opportunity
2. B1 onDemand Overview & Positioning
3. B1 onDemand Partnering
4. Partner Edge Detail
5. Engaging with SAP
6. Partner Enablement
7. Partner Add-ons and Innovations
Agenda
© 2011 SAP AG. All rights reserved. 28 Confidential
Understanding business objectives to be completed by prospective VAR partnerships
By filling in this template, you help us …
Understand your business profile, your specific way of doing business as a
partner, and your viability as an SAP Business One Solution Reseller
Align our and your expecations around the Solution Reseller model and a
potential partnership with SAP
Ramp up your SAP Business One practice once a partner contract has been
signed
Assess your sales needs and how we can support you
Work more effectively with your organization by ensuring that we assign the
right resources to you to help meet joint business goals
© 2011 SAP AG. All rights reserved. 29 Confidential
Financial information (partner)
Criteria Value (currencies in k)
Revenue
Financial rating
Revenue/person
Revenue blend
Revenue sources
Financial reserve
Growth
Percentage of revenue created by partnerhships
Profit margin (pre-tax) (profit before taxes/net sales)
Asset turnover (net sales/total assets)
Return on assets (profit before taxes/total assets)
Financial leverage (pre-taxt)(total assets/net worth)
Return on net worth (pre-tax)(profit before taxes/net
worth)
Collection period
Inventory holding period
AP payment period
Cash cycle
© 2011 SAP AG. All rights reserved. 30 Confidential
Criteria Value (currencies in k) or information
Target or Niche Markets
Client Base & Size
User Base / Reference Sites
Experience In Volume Business
Horizontal Market Experience
Portfolio Competition
Years in Business
Go to market information (partner completed)
© 2011 SAP AG. All rights reserved. 31 Confidential
Criteria Value (currencies in k)
Management Track Record
Approach to Implement Strategy Fast
Experience With Sub Channel
Management Structure
SaaS / Hosting Track Record / Understanding
Mind-set
Strategic Relevance of Business One
Additional Business
Board of directors or advisory board (# of people,
percentage of outsiders)
Frequency of planning process with feedback loops
including vendors?
CEO/direct report access for SAP
Number of Employees
Business One Marketing Contact
Business One Sales Contact
FTE to be assigned to Business One Pre-Sales
FTE to be assigned to Business One Consulting
FTE to be assigned to Business One Key User Support
Partner organizational structure information
© 2011 SAP AG. All rights reserved. 32 Confidential
Please use the Excel included or a comparable sheet to fill in this
section
Targets and business planning
© 2011 SAP AG. All rights reserved. 33 Confidential
Activity planning
2011.HY2 2012 2013 2014
Overall goal for
quarter/year (non-
KPI, e.g. Reference
creation, segment
lead, ...)
• … • … • … • …
Target segments
(industry, geo,
company size, other
characteristics)
Marketing/PR
activities
• … • … • … • …
Employee education • … • … • … • …
Others • … • … • … • …
© 2011 SAP AG. All rights reserved. 34 Confidential
Marketing and sales activity planning in detail
Advertising
Online
Dialogue
Events
References
Tele
Outbound
Activities 2011/2012
Activity
04 05 06 07 08 09 10 11 12 01 02 03 10
© 2011 SAP AG. All rights reserved. 35 Confidential
SAP Business One Partner Organizational Structure
CEO Name
Bus. One Lead Name
TSE Lead Name
TSE Name
…
Solution Advisor Lead
Name
Solution Advisor Name
…
Service Advisor Lead
Name
Service Advisor Name
...
Marketing
Name
Please indicate when the resource is going to be on board, in case they have not been hired so far
Minimum staffing requirements: Account Executive – min. one dedicated qualified full-time resource
Solution Advisor – min. one resource qualified
Service Advisors – min. one dedicated, plus one other individual having qualified
© 2011 SAP AG. All rights reserved. 36 Confidential
Opportunities Qualified
Estimated
date to close
End
customer
Offering Deal
description
Subscription
revenue
Geo Vertical Segment Comments
© 2011 SAP AG. All rights reserved. 37 Confidential
1. Market Opportunity
2. B1 onDemand Overview & Positioning
3. B1 onDemand Partnering
4. Partner Edge Detail
5. Engaging with SAP
6. Partner Enablement
7. Partner Add-ons and Innovations
8. Transitioning from SbH to OnDemand Model
Agenda
© 2011 SAP AG. All rights reserved. 38 Confidential
Partner Enablement
Calendar
On-Line Training
Social media
Implement-ation tools SDN
Dedicated PSA
Cannel Partner portal
For all partner types
Partner Enablement Resources at your Fingertips
© 2011 SAP AG. All rights reserved. 39 Confidential
Go Ready Set
Selling SaaS solution
On Demand value
proposition and
business module
Try and buy scenarios
Rules of communication
and engagement
Competitive comparison
Private cloud strategy
and business module
TCE training
Elearning sales
certification
Getting started
document (?)
OnDemand white paper
TCE training
CCC training
Demo2Win
Discovery2Win
LCM in the cloud
FAQ document
Level 1 and 2 presales
certification
On Demand landscape
infrastructure
Product Elearning
TCE training
CCC training
LCM in the cloud
B1 product training
B1 how to guides
Consultants certification
Implementation and
support processes
Implementation
methodology
Implementation tools
Sales
Executive
Presale
Consultant
VAR Enablement
© 2011 SAP AG. All rights reserved. 40 Confidential
GTM and Engagement
Partnership: VAR, SSP,
customers, 3rd party
Total Cost of Ownership
Tool
Leads Tracing and
Distribution
Total Customer
Experience
Infrastructure (Hosting) Partner Enablement
Maintenance
Control Center
Reporting
Remote Support
Platform
Lifecycle Management
Upgrades
User Management
Customization
Operations, Monitoring
and Support
Infrastructure
B1 Architecture
B1 Sizing/System
Requirements
Landscape Set up
/Administration guide
Demo Systems (Try &
Buy) Setup &
Maintenance
Service Unit Setup and
Provisioning
License Management
Add-on Management
© 2011 SAP AG. All rights reserved. 41 Confidential
1. Market Opportunity
2. B1 onDemand Overview & Positioning
3. B1 onDemand Partnering
4. Partner Edge Detail
5. Engaging with SAP
6. Partner Enablement
7. Partner Add-ons and Innovations
Agenda
© 2011 SAP AG. All rights reserved. 42 Confidential
SAP Business One Partner Add-ons
Partner add-ons are proven and preconfigured solutions pre-integrated
with SAP Business One to address specialized industry, business
process, mobile, and other challenges.
Transitioning add-ons to the cloud:
Centralized management in Cloud
Control Center
Installation
Upgrades
Provisioning
Reporting for billing purposes
Certification is available to ensure
Compatibility
Reliability
Security
Continuity
© 2011 SAP AG. All rights reserved. 43 Confidential
Solution
Center
SAP Business One OnDemand
Cloud Control Center for partners
Enhanced Support
and Application
Management via RSP
Enhanced Mobile
Integration
Complete Partner-
Initiated Lifecycle
Management
Trigger
Find the solution
Try (Trial / Demo)
Select / Purchase
Implement / Go Live
Use/Get support
Adapt / Extend
Provisioning Wizard in the Cloud Control
Center for SAP Business One OnDemand
© 2011 SAP AG. All rights reserved. 44 Confidential
Application
Management
Infrastructure
Management
Shared between Multiple
Service Units
Software
Repository
License
Server
Remote
Support
Platform*
* Optional Components
SAP Business One Users
System
Landscape
Directory
Cloud Control
Center
Integration
Component*
Mailer* Application
Servers
Dedicated to a Single Service Unit
Domain Controller
SAN
Common
Database
Database Instance
Company
Databases
Servers
Infrastructure
Components
Shared
Folders
Web Access Portal
Cloud Operators
Service Unit
Tenant Tenant
Thank you!
Questions?