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Clarity in the New Reality Sajjad Syed Head SAP Pakistan November 12, 2009.

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Presentation on theme: "Clarity in the New Reality Sajjad Syed Head SAP Pakistan November 12, 2009."— Presentation transcript:

1 Clarity in the New Reality Sajjad Syed Head SAP Pakistan November 12, 2009

2 Pre 2008 Reasons for IT Enabled Systems  Holistic (Integrated) view of business  Cost Control Specially in Inventory and Supply Chain  Adoption of Industry Best Practices  Managing growth and geographically dispersed entities.  Top management to focus on strategy rather than implementing controls.

3 Then Reality Changed as we faced the biggest global Economic downturn in the history of mankind

4 © SAP 2009 / Page 4 Today’s New Reality & Challenges The context in which businesses operate today Economic Volatility Proliferation of Global Regulation Business Network Transformation Rising Consumer Power Sustainability

5 © SAP 2009 / Page 5 60% 74% How do you lead through challenging times? You need clarity and transparency to act decisively Will reduce operating costs Will reduce capital investments Sources: McKinsey Economic Conditions Snapshot, Feb. 2009 38% Had layoffs in 2008, >50% plan layoffs in 2009 Source: CFO magazine global CFO survey Feb 2009 CUT BACK

6 © SAP 2009 / Page 6 INNOVATE 37% 36% 45% 40% How do you lead through challenging times? You need clarity and transparency to act decisively Will increase productivity Sources: McKinsey Economic Conditions Snapshot, Feb. 2009 Will restructure Will introduce new Products/services To gain market share Will change their enterprise model to be more collaborative Source: IBM global CEO study ‘the enterprise of the future’ 2008

7 © SAP 2009 / Page 7 New ways to build value – even in a downturn Align strategy and execution to enable long term growth Focus your business network on the end customer Reduce costs and risk, differentiate brand It’s important to innovate through a recession to sustain new brands and products and offer the customer a little more value. A.G. Lafley Chairman, Procter & Gamble “

8 © SAP 2009 / Page 8 Become “Clear” to Drive Success Instill accountability, agility, and customer centricity into your organization Transparent and accountable Lean and agile Collaborative & customer-centric

9 © SAP 2009 / Page 9 Demand clear answers Choose vendors that can support your business Chief Information Officer Line of Business Manager Chief Financial Officer How does your company enable us to support the quickly changing needs of the business? How can your company help us to navigate through economic challenges? How can your company help us to develop effective business strategies?

10 © SAP 2009 / Page 10 Today’s challenges require strategic agility Enable insight, efficiency, and flexibility How does your company enable us to support the quickly changing needs of the business? How can your company help us to navigate through economic challenges? How can your company help us to develop effective business strategies? INSIGHT EFFICIENCY FLEXIBILITY INSIGHT EFFICIENCY FLEXIBILITY

11 © SAP 2009 / Page 11 Business strategies evolve …but silos create a gap between strategy and execution Functional silos and non-integrated systems reduce agility and undermine growth STRATEGY EXECUTION SalesShippingBusiness UsersCall Center

12 © SAP 2009 / Page 12 INSIGHT EFFICIENCY FLEXIBILITY INSIGHT EFFICIENCY FLEXIBILITY Close the gap between strategy and execution SAP enables the clear enterprise…for you AND your business network SAP NetWeaver Intelligence Platform Business Performance Optimization Modular End to End Business Processes for improved performance for optimized operations to adapt quickly to changing circumstances

13 © SAP 2009 / Page 13 SAP All-in-One: Solution and Business Model  For a target vertical  Created by partner with vertical knowledge  Demonstrable during dedicated sales process  Rapid implementation  Individualization per customer Micro-Vertical Qualified Solutions Micro-Vertical Solutions Delivered in 8 - 12 weeks Solution packages include Software, Services, Hardware, Post- implementation Support 50 Qualified Solutions in Asia Pacific for numerous micro-verticals SAP Business Suite SAP ERP SAP Industry Solutions Individualized SAP All-in-One Customer Solution sold and maintained by Business Partners SAP All-in-One Solution micro-verticals with SAP Best Practices SAP Partner

14 © SAP 2009 / Page 14 The Economic Uncertainty Affects Businesses of All Sizes Current Economic Environment Revenue, Income COGS, Margins Cash flow, Liquidity Slowing demand (spending cut-back, customers postponing purchases) Rising costs (inflation, energy/commodity prices, healthcare costs…) Reduced credit (tougher lending standards, declining loan/line of credits) Measurable Impact on Your Business  Lack of access to funds  Higher cost of capital  Reduced cash flow  Rising inflation risks  High market volatility  Wave of consolidations  Government re-regulation  Declining consumer optimism Translating into… Source: -NFIB Small Business Economic Trends, October 2008 -The Conference Board Mid-Market CEO Challenge, 2007 -Collateral Damage, The Boston Consulting Group, Oct 2008

15 © SAP 2009 / Page 15 Technology Can Be A Strategic Tool To Help Weather the Economy Make decisions based on hard facts Make smarter fact-based decisions using business intelligence, reduce guesstimates and risky blunders Streamline processes, cut operating costs Improve efficiency and profitability by using an integrated system that eliminates errors & duplications Get accurate, precise control on cash flow Keep receivables in check, inventory low and cash flowing Proactively respond to customer needs faster Identify emerging trends / customer needs, focus on your most profitable customers, turn dissatisfied customers around Be best positioned for the rebound With careful IT investments, you can position your company for recovery and achieve sustainable growth. 1.Slash operating expenses 2.Improve cash flow & liquidity 3.Optimize working capital & debt 4.Act now on efficiency initiatives 5.Focus on customer retention 6.Diversify product portfolio 7.Go after less-affected markets 8.Increase smart marketing 9.Invest in employee development 10.Engage in selective M&A Business Measures to Take Technology Can Help Your Customers Now

16 © SAP 2009 / Page 16 SIX PRIORITIES FOR TODAY’S ECONOMIC CLIMATE 1.Manage Cash 2.Run Lean Operations 3.Drive Compliance Activities 4.Get Closer to Your Best Customers 5.Retain Your Top Talent 6.Protect and Nurture Your Brand.

17 © SAP 2009 / Page 17 Services Consumer Industries Trading Industries Financial Services Process Manufacturing Discrete Manufacturing Public Services 85% of the Forbes 500 run SAP BP Companies that have Benefited from Best Practices

18 © SAP 2009 / Page 18 Agility, Effectiveness & Insight… Pakistani Corporations partnering with SAP Consumer Products FSI/ Processed Industry Manufacturing Oil & Gas Life Science / Public Sector

19 © SAP 2009 / Page 19 Path to Clarity Steps towards becoming a clear enterprise 1. Choose the IT Product that can truly support your business strategies. 2. Develop a plan to build strategic value. 3. Start small but think big. 4. Engage key partners in your busi­ness network. to build stronger business networks. 5. Close the strategy-to-execution gap and measure the benefits.

20 © SAP 2009 / Page 20 SAP: A clear path to success Choose SAP - the best strategic vendor for your success Work to build a plan for mid-term & long-term strategic value Engage key partners in your business network to realise the value Measure the benefits

21 © SAP 2009 / Page 21 Thank you!


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