1. Real-time Business – How Do Enterprises Benefit From SAP Netweaver? Hubert Österle SAP NetWeaver Conference Basel, 2003-10-01

2. H. Österle / Slide 2 IWI-HSG Agenda l Real-time Business l Enterprise Application Integration l SAP NetWeaver l Conclusion

3. H. Österle / Slide 3 IWI-HSG Real-time Customer Processes Change the Way We Do Business EVERYTHING NON-STOP ONE-TO-ONE EVERYWHERE ONE-STOP ANYHOW

4. H. Österle / Slide 4 IWI-HSG Real-time Business Requires Integration Carrier Selection Ordering Prices and Freight Charges Product Catalog Common Semantic Model Exchanging XML messages is the easy part. Common semantics is the hard part.

5. H. Österle / Slide 5 IWI-HSG Agenda l Real-time Business l Enterprise Application Integration l SAP NetWeaver l Conclusion

6. H. Österle / Slide 6 IWI-HSG ATURB@WEB Is a xApp for Service Centers Around the World Check turbo- charger data Check availability Send order Repair turbocharger Choose spare part ABB Turbo Service Center Manuals Worldwide inventory Assembly instructions Customer-Database 60000 Customers 108000 Technical assets Spare part order 27000 Spare parts Product configuration 180000 Turbochargers 70 Service centers Service Network 500 Employees 49000 Service reports Service reports Check credit status

7. H. Österle / Slide 7 IWI-HSG ATURB@WEB Is a xApp for Service Centers Around the World Check turbo- charger data Check availability Send order Repair turbocharger Choose spare part ABB Turbo Service Center Manuals Worldwide inventory Assembly instructions Customer-Database 60000 Customers 108000 Technical assets Spare part order 27000 Spare parts Product configuration 180000 Turbochargers 70 Service centers Service Network 500 Employees 49000 Service reports Service reports Check credit status l Redesigned customer process l Reused existing applications l Hard coded interfaces l Spare parts inventory reduced by 12% (about 17 Mio. CHF) l Reduction of IT costs (replacement of mainframe) l Reduction of process costs l Support of sales and distribution (cross- and up-selling)

8. H. Österle / Slide 8 IWI-HSG Zumtobel Staff Had Problems With the Product Catalog l Annual print-out of the product catalog was outdated l Country-specific prices were difficult to manage l Product configuration was complex resulting in many returned deliveries

9. H. Österle / Slide 9 IWI-HSG Zumtobel Staff Started with a Redesign of the Customer Process Acquisition Order Accounts Payable Complaints Bidding Reference Solutions Product Marketing Light Planning Inventory Query Bank Line Agent-specific Price List OrderingOrder Status Order GroupingDelivery Status Current Bookings Payments Due/overdue Online Reclamation Status Zumtobel StaffAgent Zumtobel Staff Agent Portal

10. H. Österle / Slide 10 IWI-HSG A "xApp" Serves the Acquisition and Bidding Process of the Agents Internet Communication and Integration Layer SAP Application ServerSAP Business Connector mySAP Enterprise Portal Portal Server Page Builder User Management Corporate LDAP Portal LDAP SearchPersistenceAdapteriView-Server Presentation Layer KM (TREX) Transactions and Information Layer Transaction Systems SAP R/3 (FI/CO, SD, MM, HR,...) InformationContent Data Base Files SAP BW Product Data Data Base Agent Process Acquisition Light PlanningProd. Marketing Reference Solutions Bidding Agent-specific Price List...

11. H. Österle / Slide 11 IWI-HSG A "xApp" Serves the Acquisition and Bidding Process of the Agents Internet Communication and Integration Layer SAP Application ServerSAP Business Connector mySAP Enterprise Portal Portal Server Page Builder User Management Corporate LDAP Portal LDAP SearchPersistenceAdapteriView-Server Presentation Layer KM (TREX) Transactions and Information Layer Transaction Systems SAP R/3 (FI/CO, SD, MM, HR,...) InformationContent Data Base Files SAP BW Product Data Data Base Agent Process Acquisition Light PlanningProd. Marketing Reference Solutions Bidding Agent-specific Price List... l Redesigned customer process l Reused existing applications l Integration simplified with EAI l More convenience for the agent l Reduction of delivery failures l Faster and more precise sales process l Roll-out for all sales organizations

12. H. Österle / Slide 12 IWI-HSG Agenda l Real-time Business l Enterprise Application Integration l SAP NetWeaver l Conclusion

13. H. Österle / Slide 13 IWI-HSG Netweaver Can Be More Than EAI l The Internet-Browser simplified front-end integration. l Portal software removes many of the obstacles in user handling (e.g. Single Sign-on). l XML-based messaging is clearly more flexible than EDI or RFC. l Data synchronization has matured in systems like ALE ( MDM). l SAP NetWeaver uses the pre-defined meta-data repository.

14. H. Österle / Slide 14 IWI-HSG Integration Platforms Cannot Resolve Semantic Clashes l Different understanding of "shipment" Customer aks for "shipment nofication" Supplier notifies "goods staged" Customer understands "shipment released" l Different Product IDs Supplier has frame agreement for product "XR4" Customer has product "XR4-Australia" l Missing link between order and order confirmation Customer orders an item with 100 units Supplier´s system splits order-line into two orders with separate order confirmations Customer´s system can´t match second order confirmation to original order

15. H. Österle / Slide 15 IWI-HSG Agenda l Real-time Business l Enterprise Application Integration l SAP NetWeaver l Conclusion

16. H. Österle / Slide 16 IWI-HSG The Customer Process Will Drive the Business l SAP has a good chance to succeed with NetWeaver. l SAP customers are becoming more agile, but there is no such thing as a "Lego-Enterprise" l What´s needed is n Customer process redesign n Collaboration negotiation ( Change Management) n Technical implementation ( Change Management)

17. H. Österle / Slide 17 IWI-HSG Contact Information Hubert Österle IMG AG Fuerstenlandstrasse 101 CH-9014 St. Gallen Phone +41 71 274 8111 Fax +41 71 274 8181 e-mail: hubert.oesterle@img.com URL: www.img.com Institute of Information Management University of St. Gallen Mueller-Friedberg-Strasse 8 CH-9000 St. Gallen Phone+41 71 224 2420 Fax+41 71 224 2777 e-mail:hubert.oesterle@unisg.ch URL:www.iwi.unisg.ch