Copyright © 2003 Americas’ SAP Users’ Group Development Update Outlook for Sapphire New Industry Directives Esther Lutz, AFS Industry Principal Andrea France, AFS Industry Advisor 5/19/03

Development Update  AFS on Enterprise on Track for Q2, 2004  Scope of new developments as presented in October in LV  AFS ISA R/3 edition was delivered Jan 1, 2003 for B2B  ISA for B2C on the way  Next roll-in most likely will be CRM 5.0  Question: how does user group want to deal with it?

Outlook for Sapphire 2003 (1) Customer Presentations  Adidas Leveraging mySAP CRM Customer Interaction Center Gerben Otten, Global CIO, Adidas  Oakley A Sharp Eye on Business Benefits Yul Vanek, IT Director, Oakley  VF Corp. Efficient ERP Rollout at VF Corp. Ellen Martin, VP Supply Chains  GBMI Participant in SAP Panel on Hosting

Outlook for Sapphire 2003 (2) AFS Industry Specific Pods  SCM for AFS Supply Chain Collaborative Forecasting Supply Chain Execution Vendor Collaboration Supply Chain Event Management  CRM and PLM for AFS CRM Call Center Internet Sales for AFS AFS Reseller Portal  PLM cProject Suite and Project Systems cProjects cFolders

Outlook Sapphire 2003 (3)  Pods in the CPG Village CPFR (Collaborative Planning, Forecasting and Replenishment) UCC Net VMI (Vendor Managed Inventory) RFID (Radio Frequency Identification)

Outlook for Sapphire 2003 (4) AFS Roundtable Networking Breakfast: Wednesday, June 18 th 7:30 AM – 8:30 AM Agenda: Introduction by Martin Breuer, SVP IBU CP/AFS SAP RFID Initiatives Overview Open Discussion for customers and prospects

New Industry Directives – Sunrise 2005 Initiative announced by the UCC Council in 1997  Background  30 years ago the Uniform Code Council (UCC) introduced 12 digit UPC codes, which is the standard of most business in US and Canada  Global commerce facilitated the need for improving efficiency, so EAN8 and EAN 13 codes were created, but used mostly in EU, as the US and Canada had it’s own UPC standards. To do business, manufacturers had to re-label products  What is Sunrise 2005?  By 2005, all US and Canadian companies must be capable of scanning and storing EAN8 and EAN13 UPC codes, in addition to 12 digit UPC Codes  PID’s (Product Identification Numbers), such as EAN8, EAN 13, and UPC12 are now referred to as GTIN’s (Global Trade Identification Numbers)

GTIN

mySAP CRM 4.0 Intellectual Property Management (IPM) A fit for the Apparel and Footwear Industry?

IPM – Intellectual Property Management With intellectual property management, companies can manage media-specific business and customer relationship management tasks. Intellectual property management uses the functions of mySAP Customer Relationship Management to manage relationships with rights holders, licensors, licensees, actors, athletes, and authors of intellectual property. IPM handles the entire value chain  acquiring and creating intellectual property  developing new media products  selling rights and licenses  managing incoming and outgoing royalty payments

Intellectual Property Management in mySAP CRM IP Acquisition IP and Rights Management IP Creation and Production IP and Rights Availability Reporting IP Rights/License Sales Incoming Royalty Accounting (of IP Rights/License Revenues) Outgoing Royalty Accounting Royalty Statement IP Intellectual Properties

Intellectual Property Management – Features  IP/Rights Acquisition and Sales Contract Management  IP/Rights Availability Reporting  Incoming Royalty (License Revenue) Accounting  Outgoing Royalty Accounting

Acqusition: -Service -Rights -License Contracts §1 BP §2 IP/IPR §3... Media Company Product Development IP Right 1 IP Right2 Service Statement Royalties IP Right 1 IP Right2 Service Outgoing Royalties A/R Invoice Product 1 Product2 License 1 IP Right 1 Product 1 Product2 License 1 IP Right 1 Incoming Royalties mySAP CRM my SAP Financials, Billing Engine, BI, HR Royalty Calculation Business Partner Rights Holder Content Mgmt Sys Rights Inventory IP ID1; IP Name; Content link Contract ID; IP Rights  Territory, Format,  Term  Options, Blocks IP ID n: …. created Acquired licensed sold blocked licensed inout Business Partner Licensee Actual Data (Distributors, 3 rd Party) Intellectual Property Management (IPM) - Solution Product Sale IP Rights - Categories - Term - Runs IP Rights - Categories - Term - Runs License Sale License IP (Rights) License Service Intellectual Properties

Intellectual Property Management – Benefits  Manage intellectual property contracts globally in one place and reduce manual administration costs.  Analysis of exploitation of individual rights and identification of new potentials  Rights availability check in a global inventory, speed up local sales processes  Full leverage of Customer Relationship Management functions for trading rights: contact management, partner history  Reduced time needed for incoming royalty assessment and enable faster and more accurate royalty recognition.  Feed accurate actual royalty balance into by title profitability analysis and into balance sheet reporting. Improved transparency about business performance and decision quality.  Improved quality of rights holder information services and at the same time reduce administration costs for these services.  Increased rights holders’ satisfaction with more accurate participation statements.

Copyright © 2003 Americas’ SAP Users’ Group Thank you for attending! Please remember to complete and return your evaluation form following this session. Session Code: 3208