1. FH Südwestfalen 20 Jahre TBW Der Wirtschaftsingenieur als Change Agent Klaus Langenberg Business Unit Director SAP Norge AS 30.10.2009

2. Disclaimer This presentation is a personal reflection and only contains my personal views, thoughts and opinions. It is not endorsed by SAP nor does it constitute any official communication of SAP

3. Warmup Persönliche Potenzialanalyse! Welche Aufgabe hat der Change Agent?

4. CV Klaus Langenberg 1990 – 1994 Abschluss als Diplom Wirtschaftsingenieur FH 1993 – 1997 Consultant Itelligence AG Finanzbuchhaltung/Controlling Product Costing (MM/PP/FI-CO) Integration Manager 1997 – 2003 Gründer und Managing Director Itelligence Norge AS Startup from scratch: Koffer/Telefon Ausbau auf 30 Mitarbeiter IPO 1999

5. CV Klaus Langenberg 2003 – heute SAP Norge AS Projektleiter (3 Monate) Business Unit Director/Country Manager Field Services 2005Teilnahme an Top Management Seminar 150 out of 40500 Strategical Management Program 2007Teilnahme Top Management Seminar India, Global Delivery Concepts AlltimeAktiv auf Xing, LinkedIn

6. Ausgangssituation Ziele GAPs & How we closed them 1 2 3 Der Wirtschaftsingeneur als Change Agent:

7. 1: Ausgangssituation SAP AG 2007 / FSMP / FSStrategicImperatives &You/ Bernd-Michael Rumpf / 0 SPM–2006 Highlights Services Profitability Field ServicesProductization ROI References Customer Net Promoter Score Active ISVs Promotions From Top Talent Product Profitability Maintenance Lost (L4Q) Customer Benefits Rating Target Industries with #1 Rank Partner Net Promoter Score + - Missed Expectations on SW Revenue While Meeting Product Revenue Operating Margin Exceeded Expectations

8. A job well done – are we really ready for the future? We know basically what it takes to run this business successfully Performing Transforming (?) There are not many in our peer-group with such a performance and profile Profitability Organic growth Dealing continuously with new products Can we continue like this and is it enough? Contribution to customers and SAP Past2008/2009Future Field Services Contribution

9. Financials Significant challenges lie ahead of us SAP Business- Model Service Market Customers Bridging IT and Business 100000 customers Flexibility, Consolidation Reduced TCO Risk mitigation Business Suite only 50% BPP/eSOA as new paradigm ERP 2005 as the basis Enlarged Partner EcoSystem Co-Innovation by Partners Industrialised services Distributed Delivery Restructuring of Service Providers Its not the IF, its the WHEN and HOW STRONG.

10. Financials Significant challenges lie ahead of us: Customers Customers Bridging IT and Business 100000 customers Flexibility, Consolidation Reduced TCO Risk mitigation Its not the IF, its the WHEN and HOW STRONG.

11. Customer needs are changing Source: IBM Global Business Services, CEO survey (765 CEOs), FKOM 2007 Extent of Fundamental Change Needed Over the Next Two Years Moderate change Little or no change Past Level of Success at Managing Fundamental Change Significant change 22% 65% 13% Little to no success No change experience Some success Successful Very successful 32% 15% 33% 5% 23% Cost Containment 14% Business Process Innovation 10% New Markets & Channels 8% Compliance 5% Mergers & Acquisitions 23% Managing Relationships New Products or Services 10% Source: SAP study

12. Financials Significant challenges lie ahead of us: SAP Business Model SAP Business- Model Business Suite only 50% BPP/eSOA as new paradigm ERP 2005 as the basis Enlarged Partner EcoSystem Co-Innovation by Partners Its not the IF, its the WHEN and HOW STRONG.

13. Be frontrunner for new applications and technology Design the way forward New solutions, user groups and platform Across and beyond SAP End-to-end support Different way of working SAPs business process platform generates new opportunities and challenges

14. Supporting SAP customers along their path

15. Financials Significant challenges lie ahead of us: Service Market Service Market Industrialised services Distributed Delivery Restructuring of Service Providers Its not the IF, its the WHEN and HOW STRONG.

16. Training of consultants Availability of standard Education offerings for partners/customers Participation in testing activities DEVELOPMENTRAMP-UPGENERAL AVAILABILITY Time Productized Services Global Delivery Service Productization DEVELOPM.RAMP-UP Service Engineering Proactive Feedback Knowledge Management Hubs Installations Creation of partner/ customer enablement offerings Changing the fulfillment model

17. Significant challenges lie ahead of us SAP Business- Model Service Market Customers Financials Are We Ready?

18. Check Film mit 28 sekündiger Dauer Zählen Sie die Anzahl der Ballwechsel zwischen den weissen Spielern!

19. Basketballfilm 12 Pässe? Die Moral der Geschichte Selective Perception! Welche Rolle hat der Change Agent? 15 Pässe?

20. Ausgangssituation Ziele GAPs & How we closed them 1 2 3 Der Wirtschaftsingeneur als Change Agent

21. 2: Ziele Market Fit Strategic Fit Performance Fit

22. Ausgangssituation Ziele GAPs & How we closed them 1 2 3 Der Wirtschaftsingeneur als Change Agent

23. The Objective is to Balance Contradictory Pressures Market Fit Strategic Fit Performance Fit

24. Will Todays Service Portfolio Deliver on Our Strategy? Three areas to test: 1 2 3 Market Fit Does it address changes happening in the market? Does it create sufficient value for our customers? Does it differentiate us from competitors? Strategic Fit Does it support SAPs key strategic objectives? (such as market making for new products, expanded customer base/SMEs, leveraging partners to improve value for money and reach) Performance Fit Can I continue to meet my budget? Can I maintain quality/integrity? Does it offer a career path for my people?

25. Our Portfolio Today? Products c.vs

26. Dividing Up the Service Portfolio: First Cut PLAN- Services Classic Implemen- tations RUN- Services (IT Excellence) Safeguarding/QA Education

27. Assessing the Structure of Todays Service Portfolio Plan Services Business process consulting Business consulting type services Architectural services/concepts Classic Implementations Prime implementation Subcontracted implementation Spot consulting (staff augmentation) Run Services IT excellence, SLO, Upgrades Safeguarding/quality assurance Education Training, academy, e-learning Product Mercury, RWD/Infopack, MaxAttention (AGS), Safeguarding (AGS), CDP, Etc

28. Alternative/Additional Ways of Looking at Our Portfolio Software Mercury RWD/Infopack CDP Projects Programme and project management Quality and risk management Expertise/Spot Solution and architectural design Various types of spot consulting Business and IT strategy consulting IT Excellence SLO, Upgrade, etc Education Training, academy, e-learning

29. Business Process & Platform Services A new a set of business models for FS? Customer Types Target Clients LEMEISV/ Partners SAP Internal Quality Assurance Services Exec. Advi- sory Ser- vices PLAN BUILD Business & IT Strategy Cons. Technical/ Sol. Architecture Business Process re- engineering Scenario/ process/ Value/ Design Quality Assur. Serv. Application Implementa- tion Custom Develop- ment Technical Integration Inter- nal Ser- vices Examples 1 … Service s 1 Source:Gartner Executive Advisory Services Establish a strategic relationship to selected LE customers creating the base for future software and consulting revenue (eg. Merger&Acquisition, IT Governance, Business Case) Business Process & Platform Services Deliver a complete engagement starting from business process management – including process design and reengineering and technical/solution architecture – leading up to implementation (eg. Process Model for credit card processing, eSOA collaboration between OEM and Tier1, Shared Service Center design and implementation) Internal Services Services inside SAP Application Implementation Services Implementation of SAPs applications (eg. template/roll-out projects, expert consulting) Quality Assurance Services Ensure the success of customer and partner projects and support the ISVs in their adoption of the Business Process Platform (eg. reviews, training, certification) 6 2 3 Industrialized Services Repeatable Services (eg. Consulting Solutions, Packaged Solutions, CDP Resellable,...) 5 4 1 6 1 3 2 Industrialized Services Application Implementation Services 4 SE 5 The service portfolio will target customer segments with dedicated types of service. The shift in USP will be a lot on methodology.

30. What Are The Most Important Market Pressures hitting Your Business? The Squeeze! Changes in Partner Behaviour Opportunities/Challenges Responses Changes in Products/ Technologies Opportunities/Challenges Responses Changes in Customer Behaviour Opportunities/Challenges Responses Changes Among Competitors Opportunities/Challenges Responses

31. For example: Changes in Customer Behaviour Fixed price contracts versus time and materials More business users versus transaction users Increased influence of CEO/business heads versus IT in decisions Growth into customers with limited/no in-house IT capability Etc. Changes in Partner Behaviour Pressure for increase value added Focus on efficiency/repeatability versus one-off projects More global fulfilment Larger number of less sophisticated partners Changes in Product/Technology ESOA, BPP, Etc Pre-configuration More ISVs Competitor moves Competing visions (IBM?) Competing processes, e.g. BPO, Salesforce.com

32. Will Todays Service Portfolio Deliver on Our Strategy? Three areas to test: 1 2 3 Market Fit Does it address changes happening in the market? Does it create sufficient value for our customers? Does it differentiate us from competitors? Strategic Fit Does it support SAPs key strategic objectives? (such as market making for new products, expanded customer base/SMEs, leveraging partners to improve value for money and reach) Performance Fit Can I continue to meet my budget? Can I maintain quality/integrity? Does it offer a career path for my people?

33. What is the Contribution of Different Offerings to FS/SAP Strategic Goals? BProcess &Platform Services Appl. Impl. Contribution to Strategic Goal Low High 1 2 3 4 5 Customer Value Add Market Maker Partner Enable Mid-Size Enable Other?Industrial Fulfilment

34. Will Todays Service Portfolio Deliver on Our Strategy? Three areas to test: 1 2 3 Market Fit Does it address changes happening in the market? Does it create sufficient value for our customers? Does it differentiate us from competitors? Strategic Fit Does it support SAPs key strategic objectives? (such as market making for new products, expanded customer base/SMEs, leveraging partners to improve value for money and reach) Performance Fit Can I continue to meet my budget? Can I maintain quality/integrity? Does it offer a career path for my people?

35. Recall Where Your Service Portfolio Stands Today LowHigh Contribution to Meeting Budgeted Profit/Performance Business Process & Platform Services Exec. Adv. Services Industrialized Services Contribution to Strategic Goal Low High QA Services Appl. Implementation Services

36. Business Process & Platform Services Exec. Adv. Services Industrialized Services QA Services Appl. Implementation Services How Does Our Portfolio Need to Change? LowHigh Contribution to Meeting Budgeted Profit/Performance Business Process & Platform Services Exec. Adv. Services Industrialized Services Circle size is proportional to revenue Contribution to Strategic Goal Low High QA Services Appl. Implementation Services

37. Three Main Types of Shift in the Portfolio LowHigh Contribution to Meeting Budgeted Profit Contribution to Strategic Goal Low High Growth, Contraction, Outsourcing Re-positioning Performance Improvement

38. Target Profitability Below Target Target Exceed Target Strategic Fit 2010 LowMediumHigh Size of Bubbles = Revenue Share SAP Consulting Will More and More Become a Process Company … towards a service- oriented Process Company From Implementation Consulting today… Source: Consulting Interview, 2010 view is inspirational indication Target Profitability Below Target Target Exceed Target Strategic Fit 2010 LowMediumHigh Size of Bubbles = Revenue Share Industrialized Services (3%) Executive Advisory Services (1%) Business Process & Platform Services (6%) Quality Assurance (12%) Application Implementations Services (75%) Business Process & Platform Services (35%) Executive Advisory Services (5%) Industrialized Services (8%) Quality Assurance (17%) Application Implementations Services (35%)

39. Replace, recruit, develop PERFORMANCELOWHIGH Key role of managers: Develop and Manage to Improve Performance Does not meet expectations Partially meets expectations Consistently exceeds expectations Exceeds expectations Meets expectations Always recruit A Players Proper handling of low performers 5% 5-10% 10% 70-75%

40. Skill Transformation: What Are My Opportunities? Business IT Field of Activity SAP Comp. Profile Customer Role Legende M = Manager P = Principal S = Senior C = Consultant A = Associate Programm Manager P-M Change Management Expert S-P Quality Management Consultant C-S-P Project Manager S-P Organisational Expert C-S-P Strategic Analysis for Corporate Funct. & Industry Processes Business Strategist C-Level P-M Develop Industry Solution Portfolio Solution Portfolio Strategist CIO/CEO/Business Owner SAP C Mgmt Marketing P-M Technical Studies & Advisory Technology Strategist CIO P-M Design Technology Infrastructure Techn. Sol. Architect IT Director S-P Business Analysis/Concepts Business Expert Business Manager C-S-P Transformation Concept: Process, IT, Organization Bus. Transf. Manager CEO P-M Detailed Design of Core Processes Bus. Solution Architect Process Owner Detailed Mapping Process -> Application S-P Process Implementation Process Implementation Consultant Customer PL C-S-P System Management Concept System Management Expert System Manager Technology Cons. A-C-S-P Expert Consulting for Technical Components Project Member Support/Optimize System Mgmt Expert Cons. for SAP Composites & Repository Application Consultant Project Member A-C-S-P Test conception & support for all test activities Test Management Consultant Customer PL A-C-S-P Integr. Development Integr. Development Cons. Custom Development Lead A-C-S-P S-P P-M Transformation Concept IT Strategy IT Transf. Manager CIO Software Blueprint for Individual Development Development Architect Cust Develop.Lead S-P IT Strategy IT Strategist C-Level Enterprise IT Architecture Design P-M Plan BuildRun Process Level Enterprise LevelApplication/Technology Level The new service portfolio needs a more specialized set of skills. The strategic development of our consultants follows a set of transformation paths.

41. The action plan to master the challenges is defined Enable growth in SME Expand value for Large Enterprises Drive early adoption of new solutions Foster personal growth Change continuously our fulfillment Enable and expand the partner ecosystem Grow the ecosystem Workforce readiness Employer of choice Distributed Delivery & optimized operations A1S Ramp-Up ERP upgrades Enterprise SOA, PLAN & Customer Process Innovations IT Operations Custom Development NPI, key solutions, Ramp-Up (e.g. CRM) Blended education offerings

42. Planned versus Actual Strategy Accumulated Decisions Planned Strategy Actual Strategy Unexpected Opportunities Missed Opportunities Weed or Flower?

43. Good Strategy Execution =Planning + Opportunism Stability on the What, Flexibility on the How Expectation NOW SAP Future Time Weeds Flowers

44. Results 419 % Wachstum in der Topline (2004-2008) Profitability verdreifacht Bei konstantem Headcount Und branchenüberdurchschnittlicher Mitarbeiterzufriedenheit

45. Probieren ! Mein persönliches Fazit Die Breite des Studiums öffnet alle Türen Zu Beginn war es wichtig schnell viele Unternehmen und deren Herausforderungen kennenzulernen – Beratungsunternehmen sind m.A. nach ideal Was spannendes gefunden? Profi werden Personalverantwortung übernehmen - Wagen Persönliche Strategie überprüfen – Job/Familie/Gesundheit

46. Mein persönliches Fazit Studium bildet Ideale Plattform um als Change Agent zu arbeiten The Team is all! Verantwortung delegieren an die Top Experts Ergebnisse konsolidieren Strategie festlegen, revalidieren Lass Dein Team als Gewinner dastehn!

47. Dankeschön Prof. LieseOpportunitätskosten Prof. WenkZerreissprobe plastische /elastische Verformungen + Eisen-Kohlenstoffdiagramm Prof. JohannesEntity Relationship Model Klaus Müllner/Edwin Keuchler Englisch/Französisch Christoph GlatzPost Networking Prof. GrilloCD/Corp. Identity

48. Fragen?