1. ® Entire contents © 2006 AMR Research, Inc. All rights reserved. | Page 1 Wakey - Wakey Packaged Applications- You Need Enterprise Architecture Too! Microsoft Architect Insight Conference 2008 Derek Prior AMR Research

2. ® © 2006 AMR Research, Inc. | Page 2 The Speaker Derek Prior, Research Director: AMR Analyst specializing in infrastructure, architecture, and life cycle support issues for SAP customers 17 years at Hewlett-Packard, 6 years at Gartner, 3 years at AMR Has spoken at many SAP and SAP User Group conferences around the world 1976 PhD: Pollutant Minimization From Staged Blue Flame Combustion Passionate about the Environment

3. ® © 2006 AMR Research, Inc. | Page 3 About AMR Research AMR Research is the No. 1 advisory firm focused on supply chain, enterprise applications, and infrastructure. Founded in 1986, AMR Research provides advisory services and peer networking opportunities to supply chain and technology professionals in the manufacturing and retail sectors. The AMR Research Difference Business oriented Pragmatic research Industry focus High-touch client service model AMR Research Services Advisory Service Peer Forums Contract Negotiation Benchmark Analytix AMR Research Founded Launched SAP Research Practice Landmark SAP Upgrade Cost Study Launched Coverage of SAP Launched CNBS Service For SAP & ERP Selection ERP Milestone: 500 Selections At over $5B Launched SAP Best Practices Peer Forum 198619891997199820002002 2004

4. ® © 2006 AMR Research, Inc. | Page 4 Audience Questions How many of you run Microsoft Dynamics packaged applications? How many of you run SAP packaged applications? How many of run Oracle packaged applications

5. ® © 2006 AMR Research, Inc. | Page 5 Business Processes in Major ERP Packages Fixed Process Fixed Process Programmed Workflow Over 10 Years of Code Built-in Fixed Business Processes Limited Configuration APIs for Common Integration Points Inflexible Programmed Workflow API

6. ® © 2006 AMR Research, Inc. | Page 6 Wrapping the Blob Fixed Process Fixed Process Programmed Workflow API Services

7. ® © 2006 AMR Research, Inc. | Page 7 “SOA by Evolution” Fixed Process Fixed Process Programmed Workflow API Services Wrapping the Blob!

8. ® © 2006 AMR Research, Inc. | Page 8 The Solution Architect Focus At SAP Customers

9. ® © 2006 AMR Research, Inc. | Page 9 Coming Very Soon To SAP Customers: SOA SOA = Service Oriented Architecture A new architecture for building more business-driven enterprise applications A way of offering more flexibility and more agility in delivering and changing business processes By thinking in terms of business services, with less emphasis on IT details and a high level approach Business services are organized into application components, loosely coupled, “orchestrated” and reusable Still some vendor SOA challenges: Testing, Performance, Security Also some customer SOA challenges  R/2 MainframeClient/ServerSOA  R/3,  SAP Business Suite  SAP BBD  NetWeaver 7.1

10. ® © 2006 AMR Research, Inc. | Page 10 ESA Vision ESOA ESOA App 1 ESA App n HP SAPs SOA Strategy: The Story So Far NWV 04 NWV 04S NWV 7.1 1997 2005 2004 2007? 2010? Much more of the story to unfold…

11. ® © 2006 AMR Research, Inc. | Page 11 SAP Customer Challenges: The Business View of IT?

12. ® © 2006 AMR Research, Inc. | Page 12 SAP Customer Challenges: IT Department Fiefdoms Microsoft Oracle Etc ERP, CRM, SC DWPortalOthersLegacy SOA apps ? 100% sharing Each Fiefdom’s Software Tools: development languages data management reporting interfacing, integration system management DB, OS 10% sharing

13. ® © 2006 AMR Research, Inc. | Page 13 EA Planning: From Tactical Pilots To Strategic Deployment Enterprise Architecture (EA) Blueprint Company Standards v 2.0 Services Apps The Architect? The Book: Generic EA Methodology: SAP Partners

14. ® © 2006 AMR Research, Inc. | Page 14 Technology Business Applications Data As Is To Be As Is To Be As Is To Be As Is To Be SAP Portfolio: oApplications Non SAP: o Legacy Apps o ISV Apps o Custom Apps The Key Layers of any EA Framework o Integration Platforms o NetWeaver

15. ® © 2006 AMR Research, Inc. | Page 15 Technology Business Applications Data As Is To Be As Is To Be As Is To Be As Is To Be SAP Enterprise Modeling By IDS Scheer Business Process Models Business Process Documentation SAP Solution Manager Measure Application Live Configuration Settings SOA Governance Tools CMDB ESR SLD EA FrameworkSAP Software ToolsPartner Software Tools Key: Live information flow Manual information flow Software Tools Connected With Enterprise Architecture

16. ® © 2006 AMR Research, Inc. | Page 16 EA Methodology Capability of SAP Partners in Europe

17. ® © 2006 AMR Research, Inc. | Page 17

18. ® © 2006 AMR Research, Inc. | Page 18 The Ways That Enterprise Architecture Helps SAP Customers (But only if fully Business-driven) 1)Getting ready for strategic SOA deployments 2)A useful tool for uniting Business and IT 3)Navigating the best (least worst) route through any SAP Business transformation project

19. ® © 2006 AMR Research, Inc. | Page 19 What’s My Message From This Presentation? Innovator ? Follower ? “Wakey – Wakey Packaged Applications: You Need Enterprise Architecture Too!!!”

20. ® © 2006 AMR Research, Inc. | Page 20 Thank You Derek Prior Research Director - SAP AMR Research Lower Pitham Cottage Heckfield HOOK Hampshire. RG27 0LW 07799 073401 Mobile dprior@amrresearch.com www.amrresearch.com