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The Next Generation of SAP MaxAttention Simplify to Innovate
SAP Global Service & Support May 2015 Public LIGHT VERSION Hi, my name is… It’s my pleasure to provide an update regarding what we are calling Next Generation of SAP MaxAttention The existing SAP MaxAttention program is very successful. More and more customers utilize this pro-active support engagement for continued and effective business operations. Why do we need a next generation of it? Sap’s transition from a product company to a solution provider for our large customers requires a different model of engagement. Based on the foundation of the MaxAttention offering, SAP can deliver solutions today in the areas of cloud, simpler applications, big data, and business networks based on business value, and addressing new business model opportunities for our customers. But many customers don’t feel SAP is ready for this next step yet. It’s our obligation to “show” and guide them on their path to simplification and innovation. This is the idea of SAP MaxAttention - Next Generation. SAP can now bundle all the needed services including Development, SAP Consulting, and SAP Custom Development and Partners into one contract if required. SAP delivers a complete industry solution that leverages SAP Active Global Support (AGS) methodologies, such as build and run SAP like a factory, mission control centers, and industry best practices. In addition, there are collaborative partnerships with infrastructure, domain, and software partners to deliver a viable and complete end-to-end solution. This is being delivered today in the insurance industry as an example.
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Gerd Oswald Rob Enslin Helen Arnold
SAP MaxAttention will drive the engagements with our most strategic customers at global scale. “ ” The SAP MaxAttention – Next Generation delivery model was designed to cater for the Fortune-500 companies expanding into Asia, and the first deliveries were focused on the insurance industry. Despite the fact that most SAP business still originates in Europe and the US, Asia is a key market for the future. Large enterprises in this region are catering to the huge consumer demand in India and China. The new SAP MaxAttention charter is designed to offer these large enterprises next-generation business solutions on the SAP HANA Cloud platform. Ultimately, it is our goal to become the software-solution provider of choice. Now we enhance this model globally. To achieve this, it’s important to add business value through robust and agile end-to-end business software solutions to convince a large installed base and drive the SAP HANA Cloud platform into new industries like insurance, banking, e-commerce, engineering, and construction. – Gerd Oswald Rob Enslin Helen Arnold
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Removing Business Complexity
SERVICES INNOVATION For all services to provide a new end-to-end industry business solution for new business outcomes – powered by SAP HANA SOFTWARE HARDWARE Today, customers have to spend much more money on hardware and services than on software itself. And there is hardly money for financing innovation. The mission is clear. We have to support the business transformation of our customers with innovative and differentiating software solutions while simplifying the existing business processes and system landscapes. The overall budgets will not increase; the budget for keeping the lights on and for implementation services have to decrease to enable the required innovation, the required licenses and support services for innovative technologies and differentiating applications. However, we face certain challenges in doing that. Many installed-based customers today have a high level of complexity in existing landscapes and no one wants to invest in moving to a new platform if there is no justifiable business case. They have outsourced parts or all of operations and infrastructure. We can turn a challenge into an opportunity – through taking over the maintenance of the current customer code and the solution end to end, and over time we refactor them to run on the SAP HANA platform. This will improve the software-to-service ratio. PAST TODAY (2015)
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Industry Trends and New Technologies Drive Corporate Growth
Marketplaces Internet of Things B2C Industry 4.0 IPO Build-to-Order B2B2C C2B B2B Big Data E-Commerce O2O Businesses must continuously transform to survive and thrive. In today’s world of rapid change, time is no longer a luxury. Companies need to continually seek ways to stay ahead of the competition while satisfying all stakeholders. New Business Models and New Business Networks are evolving rapidly. China’s consumer growth, speed of the need for new business models impacts the way enterprises do business globally, as well as inside China. This is why SAP started the new engagement model there. Some examples of new business models SAP can address are: O2O (Online to Offline) in retail! A girl goes into a shoe shop. She likes very much one pair of shoes. Takes a photo wearing them. Scans the barcode on her smart phone in WeeChat which provides the price and the opportunity to pay via WeeChat. She sends both photos to her father. Later the day the father pays and the shoes are delivered to the daughter’s home. Build to Order in Automotive! (C2B) Rapidly we move from a situation of much higher demand than supply to the world of customized products. To be successful products have to be engineered/configured together with the customer. Then this product has to be build and handed over to the customer as soon as possible. Industry 4.0 in manufacturing Machine to machine integration takes the next level. Automation and quality is key for the production line. Internet of things enables predictive maintenance. Supply Chains are fully integrated and can be re-planned on daily basis. Mobile Wallets payments are having an impact on the traditional businesses of banks and Malls. More and more cash gets allocated to e-commerce platforms and payment service platforms. What is the key differentiator of a traditional bank? How to compete on interest rates without killing the operating profit? Ecommerce becomes something that is a part of every business All power is with the consumer! They want to be served best and customized. Having to go to a store, having to queue up will not work anymore. Alibaba, Wechat (Applepay???) become entrenched in the consumer world and all businesses have to “comply” or successfully compete to be part of it. As such, new business networks between businesses are forged. Businesses want to have more real time insight into their customers and suppliers. Business changes typically require deep changes in many aspects of the company, such as marketing, contracts, sales, supply chain, revenue streams, etc. It may require companies to move beyond their regular mode of business, and employees to move beyond their comfort zone. Technology and IT within the enterprise needs to not only embrace but also enable change. At SAP, we are focused on ensuring that the software solution supports and helps rapidly drive this change, while balancing and protecting the investments already made in your existing solutions. This includes your ecosystem of business transformation, outsourcers, as well as your business network Partners. Some examples: The standard distribution model of an electronics manufacturer to stores comes under threat from a competitor with highly effective business-to-customer sales channel through Internet shops. A bank collaborates with telecommunications companies to offer their end customers special rebates through their smart phones for shops in the immediate vicinity. A chemical company decides to break out of commodity selling of fertilizers and pesticides to develop a full-service offering directly to farmers, where the commitment is to collaborate to reach optimal and sustainable crop yields. New technologies not only fuel growth, they also bring new challenges…
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SAP MaxAttention Addresses Challenges as Well as Opportunities
OUR COMMITMENT SAP MaxAttention provides the end-to-end solution to rapidly deliver business outcomes and support new business models in new business networks. We adapt our solution to fit your business model changes We leverage cloud as the accelerator We realize value that links technology to business outcome We are the end-to-end solution provider Customer Software Solutions are critical to the success of the business and consumers expect Cloud, Mobile, real time insight and flexibility. Extra agility and real value is needed from any IT investment. Costs must be minimized and real business value delivered. A new and “disruptive” way of enabling your company’s systems of innovation and differentiation is needed to support these new business models. We have called this the Next Generation of SAP MaxAttention. SAP MaxAttention – Next Generation is a new, best-practice approach for SAP MaxAttention engagements, to address this paradigm shift. SAP MaxAttention contains a wide range of services to minimize the technical risks associated with the optimization of complex operational software. It also helps manage the lifecycle of SAP solutions and mitigates the risks related to IT-transformation activities. SAP MaxAttention gives SAP customers the highest level of support through continuous-management engagement. The success of SAP MaxAttention is largely due to SAP’s active involvement with its customers, as a partner, not just a software vendor. The two main aspects of SAP’s engagement —on-site specialists’ services and direct contact with managers — unlock the full potential of this support option. Our mission is to “Provide the end to end, wall to wall solution to rapidly deliver and support new business models in new business networks”.
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A New Platform for Accelerated Business Innovation and Differentiation
One system for different customer business needs BUSINESS INNOVATION BUSINESS INNOVATION ★ ★ ★ DEVELOPING NEW IDEAS WITH YOU BUSINESS DIFFERENTIATION ★ ★ New business ideas are the foundation of the new business models. The ideas can be divided into three categories: Good ideas means ideas that make sure that your business can work efficiently. These ideas are typically standardized best practices within your industry. Therefore, the probability is very high that you can realize these ideas with the standard software delivered by SAP. We call this business standard. Better ideas are ideas that provide you a competitive advantage. They help you to differentiate from your competitors and hence to achieve higher business value. But you are one of the first companies that have had the idea. Therefore, they might require some enhancements of the standard software. We call this business differentiation. Great ideas are ideas that introduce completely new ways of running existing processes or even new business models. You can leapfrog your competitors with them. These ideas are typically realized through co-engineering with SAP. This is called business innovation. The next generation of SAP MaxAttention focuses clearly on business innovation and differentiation. BUSINESS STANDARD ★
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Focus on Business Outcomes by Co-Engineering with SAP MaxAttention
CO-ENGINEER what’s missing with SAP MaxAttention Solutions for business innovation and differentiation are powered by the SAP HANA Platform (Industry 4.0, IoT, Digital Transformation, Networked Economy, etc.) Portal Mobile Fiori Cloud Integration PI/PO SAP Gateway Cloud Connector SAP HANA Extensions Ariba S/4 HANA ... BW HANA Cloud Platform PaaS Software Cloud SaaS On-premise or HEC Private BUSINESS INNOVATION BUSINESS DIFFERENTIATION Value Management Approach Agile and Fast Deployments Re-defined Engagement Model The basic principles of the SAP MaxAttention Next Generation methodology are: Customers want to transform their businesses, and we deliver innovation based on model industry solutions. We build and standardize the model industry solutions within customer projects. In SAP MaxAttention – Next Generation projects, innovation in built on top of existing model industry solutions. SAP MaxAttention Next Generation is a one-stop delivery. Customers get the full scope of a SAP MaxAttention Next Generation project from one project team. We offer one contract, in which all needed SAP services (Development, Active Global Support, Field Service, Custom Development, Education) and partners (development and industry domain partners) deliver an innovative software solution based on pre-configuration and proven best practices (model industry solution) We own the customer-specific development factory, a software factory to out-task and outsource the build process to the SAP cloud. The Innovation Control Center drives the co-engineering between the customer and SAP to close existing functional gaps. Industry Solutions
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Enhanced Engagement Model to Support Your Transformation Goals
Discover and Accelerate Innovation Deliver and Realize Value Capture desired business outcomes and jointly establish transformation strategy (Value Based Innovation Roadmap) Agile and Fast Deployments - Identify a model company to start from Continuously engaging for success with the next generation of SAP MaxAttention Business Innovation Business Differentiation Business Standard … powered by SAP HANA In the Cloud… ICC OCC MCC Partners Lines of Business Industries Existing Landscape New Business Models New Business Networks Innovating business processes with minimal risk to live operations is the challenge for companies seeking to maintain and increase their competitive edge. This is why identifying and selecting the right SAP-platform building blocks and deploying them in an optimal way lies at the heart of the SAP MaxAttention Next Generation approach. SAP MaxAttention Next Generation projects always deliver according to a standardized methodology and integrated tool chain. The objective is to enable companies to build differential and innovative software solutions on top of existing industry best practices provided by SAP to lower time to market and enable tangible value realization. Following this new approach, the customer assesses business processes in collaboration with their business, start with best practices for commodity processes, and document requirements for differentiation and innovation. Efficient prototypes of the user experience (UX) show the business what they will get, at a very early stage. New ideas: Value Based Innovation Roadmap – From Business Strategy to Realized Value
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Value Based Innovation Roadmap
An aligned value-based innovation roadmap tied to your business objectives and outcomes Your success based on value management and strong governance Measured consistently and constantly during delivery Agree business objectives Innovation projects linked to business objectives Innovation roadmap (incl. value drivers and financial KPIs) and strong outcome-based governance model The Value Based Innovation Roadmap is a MUST HAVE for all Premium Engagement Customers and a NICE to HAVE for all other customer engagements. The Business objectives and outcomes are jointly defined and agreed with our customers. The identification of Business objectives can be supported by Value Discovery Assessments or Design Thinking Workshops. The agreed Business Objectives are the foundation for the Roadmap creation. The innovation roadmap can include for example: Transformation strategy to develop a transition plan to move to SAP Cloud powered by HANA Solution Roadmap to compose a customer-specific, future-oriented application path Innovation Potential to find out how SAP supports our customers next-generation business and/or to identify Co-Innovation potential
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Agile and Fast Deployments – Big Picture First
Software Solution Big Picture Functions across the system landscape – what is the master system for each function End-to-end business process documentation Model Office New business models Target business operating model Mock-Ups Workspaces of the future For each persona in the business network Realization without blueprint documentation on paper and based on model solution Document Delta Requirements Model Company Scope Documentation* Model Company Scope 3.0 Build Model Company Scope 2.0 Build Model Company Scope 1.0 Build Sandbox for Requirements Validation Validation Workshops Validation Workshops on Model Company Assets (Process, WPB, System) It is important to understand that the approach does not rely on traditional waterfall approaches, but uses agile software-engineering methods. This means that progress is measured in terms of working functions or products. There is no traditional blueprinting, but rather, a prototype-based methodology that breaks tasks into small increments, and iterations that have short time frames (sprints). Multiple iterations may be required to release a product or new features, as changing requirements are welcome, and documentation is pragmatic and kept to a low level. This means that the project team does not need to understand each and every business requirement to the last level of detail; instead, you focus on a part of the end-to-end solution, prototype it, get the customer buy-in, and extend the scope in iterations from there. Key benefits of this approach are: Increased time-to-value, enablement of breakthrough innovation, and reduced the service-to-software ratio. *) e.g. SAP Solution Manager / Workforce Performance Builder
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For SAP MaxAttention all of SAP & Eco-System is the Virtual Team
INNOVATION CONTROL CENTER Support New Business Models (Co-) Manage Innovation within Innovation Budget Prototyping and Piloting with LoBs Industry Models Orchestration and Integration Validation OPERATIONS CONTROL CENTER End User Efficiency Implement “Always Connected and 100% Integrated Enterprise” Simplify System Landscape 6-monthly new “Release” with tangible benefits (KPI measured) for LoBs PARTNERS OF CHOICE Organization Business Process Design Project Management (PMO) Key User / End User Education Legacy System Interface MISSION CONTROL CENTER Ensure implementing to operate best Risk mitigation during the project Aligned with Value Advisory Center Integrated with SAP Development The management of the new software solution provisioning and optimization requires a one team approach across al stakeholder. One team implies that everybody and every unit contributes and participates to achieve the desired outcomes. The management requires standards for tracking requirements, objectives, progress and last but not least the expected outcomes. To get every stakeholder and unit involved a “War-Room” type of environment is required. In these rooms the transparency of all projects and operations, of the efficiency and performance of all business processes and systems is shared. Action plans and deployment strategies are discussed and finalized. Investments and benefits monitored. The Innovation Control Center is the show room for prototypes and new business models/processes. The Operation Control Center is the show room for Business Process Operations as well as system operations. The MCC (Mission Control Center) rooms are supporting all MaxAttention engagements to address urgent needs. It monitors the resolution process and SLAs of all requests from engagement teams and manages escalation. In practice, the SAP MaxAttention Next Generation partner model works by integrating partners into the “Model Office” and the “Innovation Control Center” methodologies. Partner’s areas of expertise as they pertain to the business requirements, industry outcomes and / or domain skill are identified and leveraged as part of this model. Value Chain Optimization
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Simplify & Innovate with the Next Generation of SAP MaxAttention
Your End-to-End Solution Your Innovative Ideas and New Business Models SAP HANA and SAP S/4HANA SAP MaxAttention YOUR BENEFITS Accelerate Time-to-Value Leverage latest SAP innovations faster Reduce Service-to-Software Ratio Only implement what’s necessary Reduce Total Cost of Operations To meet efficiency needs and engineering skills constraints Ideate with Design Thinking Solve problems and unlock potential Co-Engineer with SAP Translate creative ideas into new business models Re-Platform to Simplify Build on the sustainable platform Ensure Business Continuity 24x7 schedule in a globalized world Derive Value Every Day Maximize the value of your investment All of our implementations are based on the “Model Solution” for each industry. Out of the box we provide a template on which a typical company in a specific industry may run their core operations. In fast iterations we identify The missing functionality The legacy and third party components to be integrated The differentiating and innovating functions specific to your company Based on this “Big Picture” we scope an offer and then based on the agreement we will implement this scope whatever it takes. The combination of your new business models, SAP HANA Cloud Platform, and the next generation of SAP MaxAttention will optimize your end-to-end solution. Why do we do this? Our core business model is Subscription and Enterprise Support. We are not a SI company focusing primarily on Statements of work. Our core business model is based on the continuously realized value out of our software solutions and your investment in SAP solutions and services. Support Development Consulting Education Custom Development Etc. + UNMATCHED EXPERTISE FROM SAP:
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