SAP For Chemicals Roadmap - American Chemistry

SAP for ChemicalsRoadmapGreg PetersonVP Industry Solution Group – Process Industries

Business Drivers in ChemicalsDifferentiationand BusinessInnovationfor top linegrowthGlobalization/New Market Entry Set up operations in ChinaGet visibility to all businessunits and KPI’sProduct PortfolioManagement Manage Mergers/Spin-offsFlexibility to modify businessprocessesProfitability/Margin Optimization Product and ProcessInnovation Faster time to market fornew productsCapture and reuse existingknowledge and assetsfor bottom linegrowthOperational costsReductionCustomer & ProductProfitabilityAnalytics – insight intooperations – monitor KPI’s Productivityand EfficiencyMaximize plant asset use,insight into costsOptimal and visible supplychainComplianceRequirements Ongoing compliance with allregulatory issues (e.g.REACH (EU), SOX, FDA)The Drive for Growth Creates Continuous Change SAP AG 2006, Industry Value Network for Chemicals / 2

Enterprise SOA:Provides the Blueprint for Business & IT Flexibility to composeCustom deployBest-of Industry Business ProcessesononeBusiness Process PlatformDifferentiationthrough Business ProcessInnovation SAP AG 2006, Industry Value Network for Chemicals / 3Productivitythrough Consolidation &Standardization

Principles of Enterprise Services Oriented ArchitectureOpenness Open Web services standards Open integration platform InteroperabilityHELPINGDIFFERENTIATEENTERPRISE SERVICES ARCHITECTUREAdaptability Model driven Configurable Extensible Servicescomposition ProcessinnovationComposite ApplicationsSAP NetWeaverBusiness Objects,Components, and EnginesLower TCO Deployment options throughconfiguration Common operational services “Always On” platform SAP AG 2006, Industry Value Network for Chemicals / 4Productivity Peopleproductivity Embeddedanalytics Processefficiency ProcessflexibilityDRIVINGPRODUCTIVITY

Final Outcome: Enterprise SOA RoadmapRoadmap to Operational ExcellenceBusinessVisionCustomerESA uieRmerDemand PlanningManufacturingExcellenceMaster DataHarmonizedSys. Consolidationand MDMauctdorst PManufacturingIntegration &Intelligence- Quality Syst.- Pred. Mtce.nee livDdlodeMrySales &OpPlanningEfficientSupply ChainIntegratedplanningbetweenSales, Mfgand S ChainIncreasecollaboration& visibility forplanning ptive BusinessNetworkleessnisBussseecPro- Profit Based Opt.- Seg. Serv. Levels-Flex. Prod. &Sup ChainITVisionsteymsgyetarStegydtaerSttneIcTIT SConTime SAP AG 2006, Industry Value Network for Chemicals / 5

mySAP ERP Release Strategy andRoadmapThe Industry Value NetworkBusiness Process Management

Trapped by ComplexityInability to absorb innovation increases risk and TCOIncreasing risk Non-compliance Business disruption Inability to respond tobusiness needsHigh cost Testing Modifications10’s of applications Custom extensions100’s of modifications Custom integration1000’s of dependencies SAP AG 2006, Industry Value Network for Chemicals / 7

Innovation without DisruptionSynchronizing delivery and adoption cyclesRemoving structural problemswith how innovation isdelivered Roadmap visibility to enablelong-term planning Minimize major upgrade cycles Incremental enhancementdelivery to enable customer adoptionbased on business needs SAP AG 2006, Industry Value Network for Chemicals / 8

mySAP ERP 2005 Is the Go-To ReleaseProvides a long-term foundation for excellence and innovation 300 functional enhancements Enterprise services enabled Dramatic user experienceimprovements Delivers 28 configurableindustry solutionsContinuous Innovation SAP AG 2006, Industry Value Network for Chemicals / 9

Introducing Enhancement PackagesMore innovation, more quickly, more accessible to erpriseServicesProvisioningFunctionalEnhancements SAP AG 2006, Industry Value Network for Chemicals / 10

Enhancement PackagesDelivering new capabilities along with critical updatesEnhancement PackagesOptionalEnterprise ServicesSwitch FrameworkNew/Improved FunctionalitySupport PackagesLegal/Tax Changes,CorrectionsMandatory SAP AG 2006, Industry Value Network for Chemicals / 11

New Release StrategyStabilizing the core while delivering continuous innovation2006200720082009Enhancement PackagesmySAP ERP 20052010NextMajorERPReleaseSAP NetWeavermySAP ERP 2005 is the Go-ToRelease for SAP R/3 Customers SAP AG 2006, Industry Value Network for Chemicals / 12

How Is This Possible?Enterprise SOA enables continuous innovationInnovation Choices in user experience Process flexibility throughcomposition Simplified process integrationReduced TCO Simplified system landscape Fewer customizations Faster implementation Reduced testing requirements SAP AG 2006, Industry Value Network for Chemicals / 13

mySAP ERP Release Strategy andRoadmapThe Industry Value NetworkBusiness Process Management

Industry Value Networks (IVN)Industry ecosystems focused on customer needsA process to bring together customers, partners and SAPFocused on solving high value business needs anchored by SAPNetWeaver as the common platform to enable collaborative innovationand complete industry solutions SAP AG 2006, Industry Value Network for Chemicals / 15

IVN is a Major Element of SAP’s Enterprise SOA StrategyIndustry ValueNetworksIndustry nerxAppsOfficeRFIDCustomxAppsSAP PlatformsEnterprise ServiceCommunity SAP AG 2006, Industry Value Network for Chemicals / 16ProcessComponentsOtherBusinessesSAPSAP Development &ESA Adoption Program

The Industry Value Network for Chemicals Today SAP AG 2006, Industry Value Network for Chemicals / 17

Supply Chain Optimization with AnalyticsMultistageInventory Visibilityand oryOptimizationMIPO ERP and BWBackboneSRMSCMSAP Application componentsEnterpriseServicesBusiness Process PlatformDynamic DemandReviewDynamic SupplyReviewDynamicSIOP processNew ProductsReview SAP AG 2006, Industry Value Network for Chemicals / 18Enterprise PortalSupplyVisibilityDynamicMgmt ReviewDynamicInventory ReviewBusiness AnalystInsight and analytics forDemand, Supply,Inventory and MgmtScorecardsSC PlannerDynamic policy decisionsfor Planning andExecution, e.g. InventoryTarget Setting

SAP & Vendavo Integrated Price Management ScenarioPMM – SAP Price & Margin Management by VendavoPortalSales ilitySales Manager Prod Line MgrCreate QuoteNegotiate &Analyze QuoteProposalsAnalyze &Approve QuoteProposalsAnalyze &ReviewApprove Quote Approved QuoteProposalsw. CustomersSAP NetWeaverEnterpriseServiceRepositoryVendavo SAP AG 2006, Industry Value Network for Chemicals / 19SAPProcessComponentsBus.partnerSales RepSubsidiary

SAP Price and Margin Management by VendavoTMEmpower sales teams to negotiatemore profitable contracts and quotes Flexible negotiation of prices and terms Compliance with corporate guidelines Visibility into history and peer groups Consistent prices across the business Accurate prices, terms loaded into SAPProvide pricing and guidanceacross the organization Flexible, detailed price lists and policies Policies are managed by business users Mass price updates performed automatically Consistency, compliance, accuracy ensured Master data from SAP, price updates to SAPPrices, policiesand analysisdelivered to thepoint of decisionDeliver real-time pricing insightsto decision-makers Flexible business user-driven analysis Win/loss and compliance tracking On-the-fly visibility into the business Consistent, accurate “one view” Billing docs sourced from BW or SAPAnalysis drives prices and policies SAP AG 2006, Industry Value Network for Chemicals / 20Deals enhancepricing analysis

The Price Management Dilemma:Variability in Process Variability in OutcomeLarge variation in net marginfor customers with similarvolumes/revenuesLow and negative margin transactionsresulting from uncontrolled discounting andoperational leakage SAP AG 2006, Industry Value Network for Chemicals / 21

mySAP ERP Release Strategy andRoadmapThe Industry Value NetworkBusiness Process Management

From Silos To a Business Process PlatformHOW TO PRODUCTIZE AND LEVERAGE ENTERPRISE Components SAP AG 2006, Industry Value Network for Chemicals / 23PLMERPCRM

Convergence of Applications and InfrastructureWHAT IS A BUSINESS PROCESS PLATFORM?PortalRendering DevicesOfficeRFIDxAppsComposites Powered by SAP NetWeaverSAP NetWeaverExposed for consumptionas standards-basedEnterprise onents SAP AG 2006, Industry Value Network for Chemicals / 24A technology platformenriched with reusableapplication functionality Business Process PlatformHomeGrown /ISV Ready for composition byflexible models of newbusiness processes (xApps)SubsidiaryBusPartner

SAP NetWeaver BPM and ARIS for SAP NetWeaver FirstFirst stepstep towardstowards alignmentalignment ofof businessbusiness andand ITIT ConvergenceConvergence ofof businessbusiness view,view, specificationspecification andand configurationconfiguration viewview withwith thethe processprocess executionexecution layerlayerContextHigh-level Procedural ModelKey capabilities (1) Process Architecture:Specify and document theprocess architecture of thecompany, end-to-end.Process strategy andgovernance. (2) SAP BusinessSolution Maps: Crossindustry and industryspecific entry point to SAPsolutions (3) SAP BusinessConfiguration Models:Efficient businessconfiguration of SAPsolutions, reference toprocess strategy (upgrades) (4) Service Orchestration:Message-based webservice orchestration forA2A, B2B and legacyintegration. Standardsbased (BPEL).SAP Solution Maps read ARIS forSAP NetWeaver write EnterpriseServicesRepositoryBusiness ProcessView sync SAP SolutionManager configure expose services SAP ECC SAP AG 2006, Industry Value Network for Chemicals / 25SAP CRMSAP SRM Business ProcessConfiguration ViewBusiness ProcessExecution ViewLegacy

Summary – Enterprise SARoadmapsOfficePartnerRFIDSAPxAppsxAppsBusiness ProcessManagementSAP NetWeaverBusiness Process PlatformEnterpriseServiceRepositoryES DefinitionGroupsDevicesOtherApps SAP AG 2006, Industry Value Network for Chemicals / 26CRMERPxAppsdeliveredby SAPSCM Application ndardsSupportingIndustryStandards

Q&AQuestionsThanks for your attention –Questions please! SAP AG 2006, Industry Value Network for Chemicals / 27