Presentation on theme: "DRIVING CUSTOMER SUCCESS"— Presentation transcript:
1 DRIVING CUSTOMER SUCCESS Schroder Salomon Smith Barney Investor Conference New York, NY – May 22, 2002Nils Herzberg SVP, Industry Business Sector Manufacturing SAP AG
2 Safe Harbor StatementAny statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of Words such as “believe,” “estimate,” “intend,” “may,” “will,” “expect,” and “project” and similar expressions as they relate to the Company are intended to identify such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect the Company’s future financial results are discussed more fully in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including the Company’s Annual Report on Form 20-F for 2001 filed with the SEC on March 28, Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
3 Today‘s Customer Requirements All Customers WantQuick ROIReduced Cost of OwnershipProtection of existing IT investmentsLower switching costsMany Customers WantTightly integrated targeted solutionsComplete end-to-end solutionsGuaranteed mission readiness
4 The Cost of Integration – Customer Reality How to capitalize on existing IT investments ?ERP legacy~15 systemsChallenge: Cost of IntegrationSAP R/3~30 systems,Versions 3.1I - 4.6B15,000 interfacesDevelopment cost: ~ 75,000 USD / interfaceCosts of ownership: ~ 10,000 USD / year / interfaceOverall:150 Mio. USD / yearERP non-SAP~25 systems,different versionsE-Procurement10 unitsTechnical systemsSAP Markets Enterprise BuyerProfessional EditionTradinge-SalesCollaborativeEngineering
5 mySAP Technology Provides the Infrastructure ... ... to integrate several applications from different vendors to forman open but consistent e-business platformInfra- structure ServicesSecurityGlobal StandardsIT Land- scape Mgmt.Portal InfrastructuremySAP CRMmySAP SCM...SAP R/3 EnterprisePartner SystemWeb ApplicationServerLegacy / Third PartyExchange InfrastructuremySAP Technology
6 Improve Bottom Line - Adaptive Supply Chain Network Unilever East Asia PacificIntegrated mySAP SCM and mySAP BI provides consolidated transparent information.Solution: mySAP SCMMake-to-stock (Collaborative Demand Planning)Direct Procurement (Supply Chain Exchange)Replenish-to-shelf (Vendor Managed Inventory)e-LogisticsPerformance Management (Analytical Web Services)BenefitsReduced inventoriesLower transportation costReduced cash-to-cash cycleImproved customer retentionReplenish- to-shelfPerformance ManagementCoordinatorCarrierSupplierPromotion PlanningDirect ProcurementSupply Chain ExchangeRetailer
7 Manage Change - Role-Based Organizations SolutionReview the content of SAP’s Role Library (Best Practices for mySAP.com)Adapt to corporate objectives (mySAP Enterprise Portals)Build role-based organization (mySAP HR)BenefitsApplies directlyAccelerated business transformationManage-by-exceptionPersonal productivity (+10-50%)General Motors It is critical to have a portal like this to gain efficiency in both our internal processes as well as our processes with our customers.RolesWorkflowBusinessRules123ChangeExecutionException handlingEducationAS WASTO BE
8 SAP and our Customers: Building Partnerships CELCustomer SegmentationDifferent offering for different needsCustomer Engagement LifecycleCreating value across the entire lifecyclemySAP.comCombining openness and flexibility with integrationPartner Value NetUnique ecosystemSAP Field OperationsSolution portfolio mgmt.Partner Value NetCorporateGovernanceService Infrastructure
9 SAP Milestones over 30 Years Smart Business SolutionsmySAP Technology7,341 mill. € Revenue29,000 Employees18,000 Customers in CountriesOne-Step Business6,265 mill. € Revenue25,000 Employees15,000 Customers in 120 CountriesClient/ Server424 mill. € Revenue3,200 Employees2,800 Customers in 35 CountriesR/2Mainframe5.1 mill. €Revenue60 Employees50 Customers in 2 CountriesR/10.3 mill. € Revenue9 Employees1972197919921999/20002002
10 Growth Drivers 2002 and Beyond 2002 is expected to be another challenging year, software sales trends continue to be unsettled in a tough economic environment2002 sales to be expected up by around 15%2002 operating margin excl. stock based compensation and TopTier acquisition cost to be expected up at least 100 basis points (2000: 20%)Operating margin excl. stock based compensation and TopTier acquisition cost mid-term target of 25%License revenue growth drivers: CRM, SCM, Technology & ERPMigration path to mySAP.com:Currently ~25% of global customers run mySAP.com~15% of R/3 customers have migrated to mySAP.comBy 2005: 80-90% migration to mySAP.com
11 DRIVING CUSTOMER SUCCESS Schroder Salomon Smith Barney Investor Conference New York, NY – May 22, 2002Nils Herzberg SVP, Industry Business Sector Manufacturing SAP AG
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