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The Leader in Business Software Solutions

SAP Senior Management Team

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Corporate Profile

  • Founded 1972 in Mannheim Germany as Systems Applications & Products
  • 1980s Rapid Growth

Innovations in SAP R/2

SAP designs SAP R/2 to handle different languages and currencies

Named “Company of the Year” by Manager Magazine

International expansion

  • 1990s A New Approach to Software and Solutions

SAP R/3 released

SAP on the NYSE (New York Stock Exchange)

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SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Corporate Profile

  • 2000s Innovation for the New Millennium

SAP develops mySAP Workplace which links e-commerce solutions to existing ERP applications, using state-of-the-art Web technology.

SAP NetWeaver

Today

World’s largest business software company

World’s third-largest independent software provider

Over 100,600 installations worldwide, more than 1,500 partners, over 25 industry-specific business solutions,

SAP serves more than 33,000 customers in 120 countries

More than 38 thousand employees in over 50 countries

Companies that run SAP are 32% more profitable and deliver 28% more return on capital

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SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Market Strategy & Strategic Direction

  • SAP Market Leader In Enterprise Software

SAP is the worldwide leader in CRM, ERP and SCM software

26% of CRM Market Share

29% of ERP Market Share

19% of SCM Market Share

SAP Industries

Financials & Public Sector

Manufacturing

Service

SAP provides Industry-Specific Solutions

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SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

SAP Customers – Industry Specific Solutions

SAP Core Strategy

  • 25 Industry Solutions

  • Pricing and Target Market

  • Complete Business Management Package

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The Five Unique Selling Points

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *


SAP Product Line Coverage

Items Master

Item Query

Price List

Receipt/ Release Stock

Stock trans-actions

Warehouse Transfer

Serial Numbers

Batches Manage-ment

Pick and Pack

Inventory

Payment means

Deposit

Checks

Credits

Receipt

Deferred payment

Bank statement and recon-ciliation

Purchase order

Purchase Backorder

Purchase delivery

Purchase return

Purchase invoice

Purchase Credit note

Quotation

Order

Invoice

Delivery

Return

Multi-currency price lists

Client manage-ment

Gross profit calculation

Chart of accounts

Accounts Segments

Journal entry

Journal Voucher

Recurrent transaction

Multi-currency

Exchange rate

Financial Reports

Budget

Cost Centers

Sales Tax

Banking

Purchase A/P

Sales A/R

General Ledger

General Technologies shared across entire application

Consistent Reporting, Management and Data Navigation Capabilities

Software Development Kit

Service contract manage-ment

Service planning

Customer tracking across inter-actions

Knowledge Base

Contact Manage-ment

CRM

Production

Bill of Material

MRP

Demand Forecast

Work orders

Goods issue

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The service module optimizes the potential of your service departments, providing support for service operations, service contract management, service planning, tracking of customer interaction activities and customer support across multi-channel interactions with customers/partners via fax, e-mail, phone or walk-in.

SAP Business One is a functionally rich business automation system that covers key areas of the business including General Ledger, Sales, Purchasing, Inventory and Banking in one consolidated offering.

SAP Business One is also available as an SDK for easier integration of 3rd party software and services. The SDK provides published APIs into the system allowing for simpler communication between all objects in the system and more efficient development and maintenance of integration points with external software/services.

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

SAP NetWeaver Web-based Integration and Application Platform

SAP NetWeaver

COMPOSITE APPLICATION FRAMEWORK

PEOPLE INTEGRATION

Multi channel access

Portal

Collaboration

INFORMATION INTEGRATION

Bus. Intelligence

Master Data Management

Knowledge Mgmt

PROCESS INTEGRATION

Integration
Broker

Bus. Process
Mgmt

APPLICATION PLATFORM

J2EE

DB and OS Abstraction

ABAP

LIFE CYCLE MANAGEMENT

...

  • Unifies and aligns people, information and business processes

Integrates across technologies and organizational boundaries

  • The business foundation for SAP and partners

Powers business-ready solutions that reduce custom integration

Its Enterprise Services Architecture increases business process flexibility

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Module Integration and Web-Based Application Benefits of NetWeaver

“

NetWeaver’s ability to support mission critical processes, and at the same time reduce integration and maintenance costs were key in our decision making process

Reduce complexity

  • Eliminate expensive point-to-point integration with integration hubs
  • Use a single, homo-geneous platform to integrate at the people, information, and systems levels

Increase company performance

  • Increase ease of use, scalability and adaptability
  • Reduce operating cost through a single, homogeneous platform

Reduce custom integration

  • Deliver .NET and J2EE interoperability
  • Deliver adaptors for ISV products
  • Deliver products, not projects!

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Integration with Third-Party Software

  • SAP provides a rich set of integration technologies that enable third-party vendors to integrate their software with SAP
  • SAP offers integration and certification services

Interface certification program

Consulting

Access to test systems

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *



  • Excellent industry knowledge and long-term career with ERP
  • Creation and deployment of complete solution packages

SAP CHANNEL PARTNERS

  • Based on mySAP Business Suite
  • SAP Best Practices
  • SAP One Server Toolkit
  • 3,500+ customers, 200+ partners

  • Standard software package
  • Covering business needs for accounting, reporting, logistics, sales force automation, and more
  • Easy to configure and easy to use
  • Low investment and low cost of op.
  • 1,300+ customers, 100+ partner


Solutions for Small to Midsize Businesses

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Why SAP and Why Business One?

Experienced Market Leader

Unique product offerings for small and mid size firms

User Friendliness

Current Fit with Business Processes

Availability of Training and Consulting

Varied Reporting Options

Proven Integration

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SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

User Friendliness

  • Easy-to-use Interface

Intuitive

Microsoft Windows environment to reduce learning curve

  • Simplified administrative functions

Streamline operation and maintenance to significantly lower ongoing cost

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SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

User Friendliness

  • SAP eTraining

Comprehensive

Task-based courses for all areas of Business One

Simulates Business Processes

Tailored for all Skill Levels

  • Customer Support

Standard and Premium plans are flexible and leave you in control

All plans include:

System monitoring

Single point of contact

Quick response times

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SAP Business One standard support includes:

SAP EarlyWatch Alert services

Online remote support with application sharing

Issue resolution during standard business hours

Around-the-clock access to message wizards on the SAP Business One Customer Portal

Access to the SAP knowledge base and the SAP Notes service

SAP Business One premium support includes the above and adds:

Telephone support during local office hours

Thirty-minute response time for Priority 1 issues and two-hour response time for all other issues

System Monitoring For Proactive Decision-Making

SAP EarlyWatch Alert is a free service that lets you see how your system is performing, so you can identify potential problems, and make changes that prevent them from becoming reality. SAP collects and analyzes data from your system, and you can access the results via a secure Web site, or they can be e-mailed to you. Easy to install and use, SAP EarlyWatch Alert provides:

Proactive support

Faster response

Quick overview of your systems

Recommendations to solve problems

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Fit with Current Business Processes

SAP Business One is:

Flexible and adaptable to the way you do business

Easy-to use customization tools to tailor SAP for your business needs and user preference

Changes are immediate and can be made globally

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Fit with Current Business Processes

Ability to streamline your current operations

Through integration of key business processes

Begin a proactive approach

Automatic alerts, workflows and response to key business events and customer needs

  • Quick time to benefit

Ensured through reduced modification and maintenance costs and reduced upgrade cycles

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Consulting Support

  • - Ongoing Support From Business and Software Experts
  • - Support Designed to Meet Your Needs
  • - Global Expertise with a Local Flavor
  • - Support That Spans the Globe
  • - System Monitoring For Proactive Decision-Making

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Training

  • Comprehensive Training

Provides E -learning courses.

Demonstrate how features of SAP Business One relate to common, relevant business tasks.

Help users learn SAP Business One based on relevant functional areas.

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Training Courses

  • Training Courses Available
  • Accounting
  • Banking
  • Master data
  • Manufacturing resource planning (MRP)
  • Production
  • Purchasing and accounts payable (A/P)
  • Sales and accounts receivable (A/R)
  • Service

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Reporting: Web Services

Analysts are telling our clients to “Demand Web services interfaces from packaged apps vendors” and to verify that “the Web services interfaces expose all the objects they need access to” – Forrester, December, 2001

Service Directory

Service

Discovery

3

Service Invocation

Service Requester

Service Provider

Service

Publication

2

1

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Web Based Applications

  • Intelligent product catalog search
  • Product availability check
  • Pricing inquiry
  • Customer credit check
  • Order status capability
  • Inventory check
  • Vendor managed inventory

Demand forecasts, stock replenishment …

  • Dynamic bidding
  • Publish and analyze financial reports (XBRL based)
  • Finance: Derivatives trading
  • Oil&Gas: Joint venture reporting
  • Electronic bill presentment and payment
  • Matching vacancies and job applicants profiles
  • Postal service address check
  • Automated Web searches (Google)

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All these examples were drawn from the e-business area, from buying and selling. But there is more.

For example, XML based business reporting language (XBRL) provides the formats to exchange financial data of companies, balance sheets and the like. The IRS has recently become very interested in this. Also all kinds of accounting service, financial analytics, market research etc. get completely new opportunities to collect and analyze information.

In the financial space, electronic bill presentment and payment also offers new opportunities. Aggregators (banks in many cases) offer online access to bills, provide easier payment methods to customers and relieve companies from tedious collection processes.

A further area is Human resources, in particular job offerings and job searching: HR-XML is a format which enables automatic matching of vacancies with job offerings.

A simple, but very useful Web service is address and zip code checking. This has become well-known as a showcase for the use of Web service protocols, like SOAP, WSDL and UDDI..

And Google, one of the hottest Internet search engines, also provides an API for program based searches.

SAP Business One Costs

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

SAP Business One Costs

  • Hardware
  • Software
  • Add-on software and hardware
  • Implementation process
  • Training of operators
  • System upgrade
  • Maintenance

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Cost of Hardware

  • Example:

  • Basic workstation Dell Dimension 2400 Series: $618 per unit (Bulk sales negotiated)
  • Quality and Development Server Dell PowerEdge 1600SC: $6,862 per unit
  • Production Server PowerEdge1600SC: $10,799 per unit

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Cost of SAP Business One Software

  • SAP cost fluctuates depending on ERP Modules
  • $500,000 base software; $100,000 additional per module and 100 User Licenses @ $2000 per user.

Cost includes client-side and server-side software, backup software, operating system, test and development tools.

  • Modules can be customized; selected modules are pertinent to business functions

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

SAP Modules

PHASE 1:

  • Financial Accounting

PHASE 2:

  • Production Planning
  • Materials Mgmt

PHASE 3:

  • Human Resources
  • Sales and Distribution

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Cost of Add-On Software and Hardware

SOFTWARE

  • Backup executive file for Windows servers Veritas ver. 9.0: $300-500
  • Backup Storage Area Network OptionBrightStor ARCserve ver. 9: $1000-1600

HARDWARE

  • Storage controller Adaptec SCSI RAID 2100s: $388-445 each
  • Interface ConverterIBM SAN Data Gateway Router 2108 Model R03: $6000
  • Barcode ScannerWasp WLP 4170: $250-300.

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Cost of Implementation

TIMEFRAME, REQUIREMENTS & RESOURCES

  • Consulting Organizations
  • Resources – internal and external
  • Training of personnel
  • System Testing
  • Documentation

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Cost of Maintaining the System

ANNUAL COST

  • Cost determined by but not restricted to the follow factors:

Customer Support

Replacement materials

Debugging and anti-virus software

Maintenance Fees

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Lost Opportunity Costs

  • Gauging cost is difficult and sometimes inaccurate.
  • Solution: set money aside (amount still to be negotiated with size of R/3 system) for possible system failure
  • Future scenarios to consider:

General Ledger application crashes

Infrastructure collapses

Productivity services become unavailble

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Periodical System Upgrade

  • The typical upgrade for SAP would be approx. $ 250,000.
  • This number can decrease, however, with the number of modules on the company’s system.

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

Final Cost Summary

Cost of Hardware $23,841
Cost of SAP Software and Licenses ≈ $800,000
Cost of Add-Ons ≈ $12,452
Cost of Implementation ≈ $100,000
Cost of Training $31,136
Cost of Maintenance 20,000/yr
Lost Opportunity Costs TBD
GRAND TOTAL $987,519

SAP AG 2003 Global Roadshow, EMEA, April 2003, WB *

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