SAP Strategy and Business Intelligence Paul Hawking Victoria University Australia

SAP University Alliance Program (UAP) Background University SAP SAP User Group SAP Academic Program Director Research Industry Reports Best selling author ERP Systems and Business Intelligence Visiting Professor SAP Mentor Teach Academics Develop curriculum Top 10 Most Influential SAP People (InsideSAP) Presenter Design Events Advisor Past Chairperson 2

Top CEO Business Priorities, 2013 Rank Top 10 Business Priorities 1 Increasing enterprise growth 2 Reducing enterprise costs 3 Expanding into new markets and geographies 4 Increase profitability 5 Implementing finance and controls 6 Talent and workforce management/development 7 Consolidating, standardizing and streamlining operations 8 Execute acquisitions, mergers and partnerships 9 Improve governance, risk, compliance and security Gartner

Strategy and Business Intelligence

Public Sector Procurement Process? - Complexity

Data Process People Integration Problems 9/11/2011 Last name Subject vs Course Process Weekly vs Fortnightly Workflow (goods receipt) People Application Screens Information

What is an Enterprise Resource Planning System? An ERP System can be defined as a “modularised, integrated, real time information system with broad functional scope responsible for the processing and management of business transactions” (Hawking 2005) Business software used by large companies Expensive & complex need on-going support & administration and as such they support a large base of employees software is integrated and multi-module Traditional ERP systems have replaced many standalone software packages that companies used such as accounting, stock control, payroll, sales & distribution, production planning ERP is fast evolving shifting to an e-business focus with recent developments incorporating internet-enabling architecture, CRM, SCM and DW

Why ERP? Source: Deloitte Consulting and Benchmarking Partners Note: Based on multiple answers per respondent No matter what a lot of companies say the main catalyst for an ERP was disparate systems. All other drivers are related to disparate systems Source: Deloitte Consulting and Benchmarking Partners (Based on a study of 62 companies that have gone live with an ERP system)

Integrate Optimise Informate Why ERP Systems

Business Transformation Projects Implement strategy through process, then continuously improve process effectiveness and efficiency Strategy & Business Requirements Business Process Priorities Business Transformation Projects People Processes Tools Performance = x 100%

Business Role of BI (TWDI) Reporting What happened? Analysis Why did it happen? Monitoring What’s happening now? Prediction What might happen? Complexity Business Value

ASUG Business Intelligence Maturity Model Stage 1 Information Dictatorship 2 Information Anarchy 3 Information Dictatorship 4 Information Collaboration Information and Analytics Requirements are driven from a limited executive group KPI’s and analytics are identified, but not well used KPI’s and analytics are identified and effectively used KPI’s and analytics are used to manage the full value chain Governance IT driven BI Business driven BI evolving BI Competency Centre developing Enterprise wide BI governance with business leadership Standards and processes Do not exist or are not uniform Evolving effort to formalise Exist and are not uniform Uniform, followed and audited Application Architecture BI “silos” for each business unit Some shared BI applications Consolidating and upgrading Robust & flexible BI architecture Stages/categories/activities

Measuring BI Success and Value (McDonald 2004) Create a formal, continuous process for measuring success and value generated Identify and measure results of each project phase Establish realistic goals and expectations based on capability / maturity Business Success Return on investment Economic value add Revenue increases Cost Savings Customer / corporate profits Enables Business Strategy and Completive Advantage Operational Success Value Created Productivity improvements Process efficiency and effectiveness Key performance indicators User Success User adoption Usage tracking User satisfaction Data problems Implementation Success On-time, On-budget Overall Success of the BI Initiative

Meta Data Data Integration Master Data BICC Data Quality BI Strategy Executive Support Skills

Systems Applications and Products in Data Processing SAP AG founded 1972 2011 Revenues: € 14.5 billion 56,000 SAP employees 200,000 customers in 130 countries More than 10 million users worldwide Biggest company > 300,000 users Smallest company < 5 users ~ 250 million lines of code More than 1,600 partners

SAP Targets for 2015 Over €20 billion revenues 35% operating margin (non-IFRS) To reach 1 billion people Build a €2 billion cloud business Become the fastest-growing database Company http://www.sap.com/corporate-en/investors/pdf/SAP-Fact-Sheet-EN.pdf

40 million $330 million 50 million 75% 32,000 1.5 billion 54 million SAP has a massive impact on industries, businesses, governments, and communities 40 million Production of 40 million barrels of oil per day $330 million Retail outlets transactions totaling $330 million per day 50 million 50 million Bank accounts 1.5 billion 75% 75% of worldwide annual beer production (1.5 billion hectoliter) 32,000 Production of 32,000 car engines per day 54 million 54 million Annual health-care patient visits (US Only) 107 Defense forces across 107 countries 2.5 billion Processing of 2.5 billion utility bills per day  2.2 million 65% 65% of worldwide annual chocolate production (2.2 million tons) 4 million Production of 4 million tons of chemicals per day SAP is in a position to make a real difference to the world economy It’s fair to say, SAP solutions are the power behind a very large chunk of the world’s GDP. 2.5 billion utility bills 50 million bank accounts 65% of the worldwide annual production of chocolate And, I’m particularly pleased we can be relied upon for 75% of the world’s annual beer production. Thanks goodness that’s in safe hands. But - does make me wonder about who’s looking after all the wine….. In May Léo Apotheker took over from Henning Kagermann as CEO of SAP. He has immediately set about putting his stamp on SAP. Léo has said quite clearly: SAP has to be more relevant and more than #1 in enterprise software. We have to be a catalyst for a better world. So, understanding the pervasiveness of SAP software, our ability to drive transparency within and across supply chain; to enhance accountability and governance, Leo has clearly articulated a new strategic purpose for our business:…. © SAP AG 2009. All rights reserved. / Page 18 18 18

Executive Priorities, 2013 Gartner Rank Top 10 CEO’s Business Priorities 1 Increasing enterprise growth 2 Reducing enterprise costs 3 Expanding into new markets and geographies 4 Increase profitability 5 Implementing finance and controls 6 Talent and workforce management/development 7 Consolidating, standardizing and streamlining operations 8 Execute acquisitions, mergers and partnerships 9 Improve governance, risk, compliance and security Top 10 CIO’s Technology Priorities Analytics and business intelligence Mobile technologies Cloud computing (SaaS, Iaas, Paas) Collaboration technologies (workflow) Legacy modernisation IT management Customer Relationship Management (CRM) Virtualisation Security ERP Applications Gartner

SAP’s STRATEGY HANA SERVICES FIVE MARKETS APPLICATIONS ANALYTICS DATABASE & TECHNOLOGY MOBILE CLOUD HANA SERVICES

SAP’s STRATEGY HANA SERVICES FIVE MARKETS APPLICATIONS ANALYTICS DATABASE & TECHNOLOGY MOBILE CLOUD HANA SERVICES

SAP ERP – Business Suite SAP R/3 Enterprise 2000s 2005 Common Kernel Open Web services standards Open integration platform Interoperability Model driven Configurable Extensible Services composition Process innovation

SAP Business One SAP All In One SME SAP Solutions Small enterprises and subsidiaries “Off-the-shelf” product Easy to customize Wide range of innovative functionality Immediate impact Easy to use / running in a few days Low cost of entry and ownership Low maintenance Over 800 customers SAP All In One Midsize companies and subsidiaries Complete functionality Easy to get started Pre-configured, single database Adaptable Industry templates & configurable Partner network with Proven solutions and expertise Proven ROI and over 2000 customers

SAP Business By Design A web-based business management software service which moves away from its traditional software. (“Software as a Service”) Aimed at businesses with 100 to 500 employees, users can draw together data from different parts of their business. Includes eight areas of data analytics and management : finances, human resources, supply chain, goals, customer relationships, projects, supplier relationships, and compliance. The service will cost $149 per month per user. There is a minimum of 25 licensed users, and the cost includes software, infrastructure, services and support

World Leader In Enterprise Applications

The World’s Top Companies Use SAP

SAP’s STRATEGY HANA SERVICES FIVE MARKETS APPLICATIONS ANALYTICS DATABASE & TECHNOLOGY MOBILE CLOUD HANA SERVICES

Business Intelligence Priorities - Analysts/SAP Memory Embedded Cloud Business Intelligence Collaborative Self Service Mobile

BI Consolidation

Analytics (Business Intelligence)

Business Drivers and Target Groups Predictive Analysis Design Studio Visual Intelligence Analysis (OLAP/Office)

SAP’s STRATEGY HANA SERVICES FIVE MARKETS APPLICATIONS ANALYTICS DATABASE & TECHNOLOGY MOBILE CLOUD HANA SERVICES

Big Data?

SAP HANA

SAP’s STRATEGY HANA SERVICES FIVE MARKETS APPLICATIONS ANALYTICS DATABASE & TECHNOLOGY MOBILE CLOUD HANA SERVICES

World Leader In Mobility

SAP’s Mobility Solution SAP Business Suite Databases 3rd Party Applications Mobile Enterprise Application Platform (MEAP) Mobile Device Management Mobile Consumer Application Platform (MCAP) LoB/Industry Apps Customer/Partner Apps Analytics Apps SAP Store SAP Mobility Platform Support for All Popular Devices Instant Mobilization Full-Service Platform Backend Agnostic Implementation and Hosting Services

SAP’s STRATEGY HANA SERVICES FIVE MARKETS APPLICATIONS ANALYTICS DATABASE & TECHNOLOGY MOBILE CLOUD HANA SERVICES

SAP Cloud Applications “Loosely Coupled” Line of Business Cloud Solutions SuccessFactors BizX EmployeeCentral Global Core HR Global Cloud Payroll End-to-end Talent Management Customer OnDemand Sales Service Marketing Social Customer Engagement Financials OnDemand Core Financials Sales & Purchase Order Processing Project Management Travel OnDemand Ariba Strategic Sourcing Contract Lifecycle Management Supplier Management Cloud Suite Business ByDesign Cloud ERP for upper mid and subsidiaries – 50 to 1,000 employees Business One Cloud Small business essentials - 10 to 100 employees Cross Solution: Social (SAP Jam) / Analytics / Mobility / Business Networks SAP HANA

Hybrid Model

There Is a Huge demand for SAP Consultants About 164,000 active SAP Consultants in the world (Global and local SIs, Staffing Agencies, Free-lancers, Offshore suppliers) Annual growth in SAP Consultants demand: 6% All countries concerned; emphasis on US and Germany, BRIC Focus shifting due to increasing share of Offshore-Delivery from 9% to 14% of all delivery resources Main topics: Mature markets: Experienced (5 to 8 years) consultants - Experts/specialist with process or Industry background, project managers, SAP NetWeaver, ESOA, Offshore capacities Emerging Markets: Young & Experienced consultants - project managers, commodity skills, ERP, technical (SAP NetWeaver, Basis), mid-market Between 2007 and 2010, about 30,000 new Consultants (Net New) needed in the ecosystem (up to about 200,000 consultants) of which about 18,000 in onshore and 12,500 in offshore locations Additional comment on demand for mature markets Constant feed needed, not only experienced but also prepare for the future, because we did not do so during the internet hype we now have the shortage We need to continuosly feed the funnel for the future. As we all know there professionalism and seniority is based on experience. The earlier a Talent gets the chance, the faster we see a new professional with him Source: SAP and PAC Pierre Audoin Consultants 42

Graduates Will Need a Broader Mix of Skills Competence Profiles Solution Profiles Industry Focus Competence Profiles Core Competencies Function-specific know-how Tools & Methodologies Consulting / Education know-how Managerial Competencies Product and Computing Skills Application Skills Technical Skills Industry Focus Indicating industry experience collected during projects Process Skills

Paulhawking #SAPVU Paul Hawking SAP Academic Programs Director College of Business Telephone: +61-3-99194031 Mobile: +61-419301628 Email Paul.Hawking@vu.edu.au Paulhawking #SAPVU