SAP Strategy and Business Intelligence Paul Hawking Victoria University Australia.

SAP Strategy and Business Intelligence

Paul Hawking

Victoria University Australia

@Victoria UniversitySAP Update And Strategy

SAP University Alliance Program (UAP)

SAP Academic Program Director

Research Industry Reports Best selling author ERP Systems and

Business Intelligence Visiting Professor

University

Background

SAP Mentor Teach Academics Develop curriculum Top 10 Most Influential

SAP People (InsideSAP)

SAP Presenter Design Events Advisor Past Chairperson

SAP User Group

http://www.sdn.sap.com/irj/scn/wiki?path=/display/SAPMentors/SAP+Mentor+Initiative+FAQs


Top CEO Business Priorities, 2013

Gartner

Rank Top 10 Business Priorities

1 Increasing enterprise growth

2 Reducing enterprise costs

3 Expanding into new markets and geographies

4 Increase profitability

5 Implementing finance and controls

6 Talent and workforce management/development

7 Consolidating, standardizing and streamlining operations

8 Execute acquisitions, mergers and partnerships

9 Improve governance, risk, compliance and security


Strategy and Business Intelligence


Public Sector Procurement Process? - Complexity


Integration Problems

Data• 9/11/2011• Last name• Subject vs Course

Process• Weekly vs Fortnightly• Workflow (goods receipt)

People• Application Screens• Information


What is an Enterprise Resource Planning System?

An ERP System can be defined as a “modularised, integrated, real time

information system with broad functional scope responsible for the processing and

management of business transactions”

(Hawking 2005)


Why ERP?

Note: Based on multiple answers per respondent

6%

10%

11%

12%

15%

15%

19%

20%

21%

24%

26%

27%

37%

42%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Unable to Support Growth

Inconsistent Processes

Obsolete Systems

Difficult to Integrate Acquisitions

Business Becoming Global

Unable to Implement New Business Strategies

Business Processes or Systems Not Integrated

Complex, Ineffective Business Processes

Not Responsive Enough to Customers

Cost Structure Too High

Poor Quality/Visibility of Info

Poor/Uncompetitive Performance

Disparate Systems

Systems Not Y2K Compliant

Pro

gra

m M

oti

va

tio

n

% Respondents

Source: Deloitte Consulting and Benchmarking Partners (Based on a study of 62 companies that have gone live with an ERP system)


Why ERP Systems

Integrate Optimise Informate



Business Transformation Projects

Implement strategy through process, then continuously improve process effectiveness and efficiency

Strategy & Business Requirements

Business Transformation Projects

Suppliers

Order Fulfilment

ServiceProducts

Order Fulfilment

ServiceProducts

ProductCreation

ProductCreation

ProductLife

Cycle

ProductLife

Cycle

Order Fulfilment

Capital Equipment

Order Fulfilment

Capital Equipment

Order FulfilmentPackaging

Material

Order FulfilmentPackaging

Material

Customers

Supplier ManagementSupplier Management

Customer ManagementCustomer Management

Business Control & Finance

Communications

Legal & Tax

Human Resources

Information Technology

Corporate Governance

Business Strategy

Business Transformation

Business Process Priorities

GLT member GLT member T Council T CouncilGLT member GLT member

Potential value

Fit with strategic priorities

Project Charter

PM and SG

As-Is description with fact base

Initiative KPI and Baseline

Financial Potential

To-be description of new approach

Stakeholder input

High-Level Business Case

High-Level Implementation

Plan

Conf irmed Implementation plan

(Cluster)

Business Case

Leadership and resource plan

Milestone completion

Benef it verif ication

Pilot evaluation

Solution ready to implement

Conf irmed Business Case

Toll gates & Deliverables

Analyse DesignInitiate Develop ImplementPlan

PeopleProcesses ToolsPerformance

= x x


Reporting• What

happened?

Analysis• Why did it

happen?

Monitoring• What’s

happening now?

Prediction• What might

happen?

Business Role of BI (TWDI)

Business Value

Com

ple

xit

y


ASUG Business Intelligence Maturity Model

Stage

1

Information Dictatorship

2

Information Anarchy

3

Information Dictatorship

4

Information Collaboration

Information and Analytics

Requirements are driven from a limited executive group

KPI’s and analytics are identified, but not well used

KPI’s and analytics are identified and effectively used

KPI’s and analytics are used to manage the full value chain

Governance

IT driven BI Business driven BI evolving

BI Competency Centre developing

Enterprise wide BI governance with business leadership

Standards and processes

Do not exist or are not uniform

Evolving effort to formalise

Exist and are not uniform

Uniform, followed and audited

Application Architecture

BI “silos” for each business unit

Some shared BI applications

Consolidating and upgrading

Robust & flexible BI architecture


Measuring BI Success and Value (McDonald 2004)

Overall Success of the BI Initiative

Implementation Success

User Success

Operational Success

Business Success

• Create a formal, continuous process for measuring success and value generated

• Identify and measure results of each project phase• Establish realistic goals and expectations based on

capability / maturity

• On-time, On-budget

• User adoption• Usage tracking• User satisfaction• Data problems

• Productivity improvements

• Process efficiency and effectiveness

• Key performance indicators

• Return on investment

• Economic value add

• Revenue increases

• Cost Savings• Customer /

corporate profits• Enables Business

Strategy and Completive AdvantageV

alu

e C

reate

d


Data Integration

Meta Data

Data Quality

Executive Support

Master Data

BI Strategy

Skills

BICC


Systems Applications and Products in Data Processing

SAP AG founded 1972 2011 Revenues: € 14.5 billion 56,000 SAP employees

200,000 customers in 130 countries

More than 10 million users worldwide Biggest company > 300,000 users Smallest company < 5 users

~ 250 million lines of code

More than 1,600 partners


SAP Targets for 2015

• Over €20 billion revenues

• 35% operating margin (non-IFRS)

• To reach 1 billion people

• Build a €2 billion cloud business

• Become the fastest-growing database Company

http://www.sap.com/corporate-en/investors/pdf/SAP-Fact-Sheet-EN.pdf


© SAP AG 2009. All rights reserved. / Page 18

40 million Production of 40 millionbarrels of oil per day $330 million

Retail outlets transactions

totaling $330 million per day

1.5 billion75%75% of worldwide

annual beer production (1.5 billion hectoliter)

50 million50 million Bank accounts32,000Production of 32,000

car engines per day

107Defense forces across

107 countries

54 million54 million Annual health-care patient visits (US Only) 2.5 billion

Processing of

2.5 billion utility bills per day

4 millionProduction of 4 million tons of chemicals per day2.2 million

65%65% of worldwide annual chocolate production (2.2 million tons)

SAP has a massive impact on industries, businesses, governments, and communities


Executive Priorities, 2013

Gartner

Rank Top 10 CEO’s Business Priorities

1 Increasing enterprise growth

2 Reducing enterprise costs

3 Expanding into new markets and geographies

4 Increase profitability

5 Implementing finance and controls

6 Talent and workforce management/development

7 Consolidating, standardizing and streamlining operations

8 Execute acquisitions, mergers and partnerships

9 Improve governance, risk, compliance and security

Top 10 CIO’s Technology Priorities

Analytics and business intelligence

Mobile technologies

Cloud computing (SaaS, Iaas, Paas)

Collaboration technologies (workflow)Legacy modernisation

IT management

Customer Relationship Management (CRM)Virtualisation

Security

ERP Applications


APPLICATIONS

ANALYTICSDATABASE & TECHNOLOGY

MOBILE CLOUD

FIVE MARKETS

HANA

SERVICES

SAP’s STRATEGY


APPLICATIONS


MOBILE CLOUD

FIVE MARKETS

HANA

SERVICES

SAP’s STRATEGY


SAP ERP – Business Suite

SAP R/3

Enterprise

2000s

2005

CommonKernel

• Open Web services standards• Open integration platform• Interoperability• Model driven• Configurable• Extensible• Services composition• Process innovation


SME SAP Solutions

SAP All In One

Midsize companies and subsidiaries

Complete functionality Easy to get started

Pre-configured, single database

Adaptable Industry templates & configurable

Partner network with Proven solutions and expertise

Proven ROI and over 2000 customers

SAP Business One

Small enterprises and subsidiaries “Off-the-shelf” product

Easy to customize

Wide range of innovative functionality

Immediate impact Easy to use / running in a few

days

Low cost of entry and ownership

Low maintenance Over 800 customers


SAP Business By Design

A web-based business management software service which moves away from its traditional software. (“Software as a Service”)

Aimed at businesses with 100 to 500 employees, users can draw together data from different parts of their business.

Includes eight areas of data analytics and management : finances, human resources, supply chain, goals, customer relationships, projects, supplier relationships, and compliance.

The service will cost $149 per month per user. There is a minimum of 25 licensed users, and the cost includes software, infrastructure, services and support


World Leader In Enterprise Applications


The World’s Top Companies Use SAP


APPLICATIONS


MOBILE CLOUD

FIVE MARKETS

HANA

SERVICES

SAP’s STRATEGY


Business Intelligence Priorities - Analysts/SAP

Mobile

Self

Service

In

Memory

Collaborative

CloudEmbedded

Business

Intelligence


BI Consolidation


Analytics (Business Intelligence)


Business Drivers and Target Groups

Analysis(OLAP/Office)

Visual Intelligence

Predictive Analysis

Design Studio


APPLICATIONS


MOBILE CLOUD

FIVE MARKETS

HANA

SERVICES

SAP’s STRATEGY


Big Data?


SAP HANA



APPLICATIONS


MOBILE CLOUD

FIVE MARKETS

HANA

SERVICES

SAP’s STRATEGY


World Leader In Mobility


SAP’s Mobility Solution

SAP Business Suite Databases 3rd Party Applications

Mobile Enterprise Application Platform (MEAP)

Mobile Device Management

Mobile Consumer Application Platform (MCAP)

LoB/Industry Apps Customer/Partner Apps Analytics Apps

SAP Store

SAP Mobility Platform

Support for All Popular Devices

Instant Mobilization

Full-Service Platform

Backend Agnostic

Imp

lem

enta

tio

n a

nd

Ho

stin

g S

ervi

ces


APPLICATIONS


MOBILE CLOUD

FIVE MARKETS

HANA

SERVICES

SAP’s STRATEGY


SAP Cloud Applications

SuccessFactors BizX

EmployeeCentral Global Core HR

Global Cloud Payroll

End-to-end Talent Management

Customer OnDemand

Sales

Service

Marketing

Social Customer Engagement

Ariba Strategic Sourcing

Contract Lifecycle Management

Supplier Management

Business ByDesign Cloud ERP for

upper mid and subsidiaries – 50 to 1,000 employees

Business One Cloud Small business

essentials - 10 to 100 employees

Financials OnDemand

Core Financials

Sales & Purchase Order Processing

Project Management

Travel OnDemand

Cross Solution: Social (SAP Jam) / Analytics / Mobility / Business Networks

SAP HANA

“Loosely Coupled” Line of Business Cloud Solutions Cloud Suite


Hybrid Model


There Is a Huge demand for SAP Consultants

About 164,000 active SAP Consultants in the world (Global and local SIs, Staffing Agencies, Free-lancers, Offshore suppliers)

Annual growth in SAP Consultants demand: 6%

All countries concerned; emphasis on US and Germany, BRIC

Focus shifting due to increasing share of Offshore-Delivery from 9% to 14% of all delivery resources

Main topics: Mature markets: Experienced (5 to 8 years) consultants -

Experts/specialist with process or Industry background, project managers, SAP NetWeaver, ESOA, Offshore capacities

Emerging Markets: Young & Experienced consultants - project managers, commodity skills, ERP, technical (SAP NetWeaver, Basis), mid-market

Between 2007 and 2010, about 30,000 new Consultants (Net New) needed in the ecosystem (up to about 200,000 consultants) of which about 18,000 in onshore and 12,500 in offshore locations

Source: SAP and PAC Pierre Audoin Consultants


Graduates Will Need a Broader Mix of Skills

Competence Profiles

Core Competencies Function-specific know-

how - Tools & Methodologies- Consulting / Education

know-how Managerial Competencies

Product and Computing Skills

Application SkillsTechnical Skills

Industry Focus

Indicating industry experience collected during projects

Process Skills

Competence Profiles

Solution Profiles

Industry Focus


Paul HawkingSAP Academic Programs DirectorCollege of BusinessTelephone: +61-3-99194031Mobile: +61-419301628Email [email protected]

Paulhawking #SAPVU

mailto:[email protected]

http://www.sdn.sap.com/irj/scn/wiki?path=/display/SAPMentors/SAP+Mentor+Initiative+FAQs

SAP Strategy and Business Intelligence Paul Hawking Victoria University Australia.

Documents

sap strategy

strategy strategy

business strategy

strategy slide

strategy sap ag

strategy sap targets

sap employees

business intelligence