1. Copyright © 2003 Americas’ SAP Users’ Group Integrating Managed Services into SAP EH&S Jürgen Schwab CEO, TechniData AG John Torgerson Market Development Mgr., Dow Corning May 21st, 2003

2.  Managed Services are standardized service offerings  Managed Services can help the customer to fulfill his daily task more efficiently  The Managed Services supplier provides and maintains all elements needed to deliver the service e.g.  Tools and back-office  Human resources and expertise  Content Integrating Managed Services into SAP EH&S

3.  Use of Managed Services is increasing significantly in the last two years  HR services payroll  financial services accounting  logistic services warehousing, transport  Any non-core but essential services Integrating Managed Services into SAP EH&S

4. Service Provider Data channel Integrating Managed Services into SAP EH&S Collaborative Scenario Customer 1Customer 2 Proces s Step 1 Proces s Step n Proces s Step 1 Proces s Step n Proces s Step 2

5. Integrating Managed Services into SAP EH&S ASP Application Service Providing  IT-focused  Delivers a preconfigured and ready-to-run solution  Provides no support for day- to-day work  Replaces inhouse IT-system ASP Application Service Providing  IT-focused  Delivers a preconfigured and ready-to-run solution  Provides no support for day- to-day work  Replaces inhouse IT-system Managed Service Providing  Operation focused  Delivers specialised services and the tools to connect to  Provides day-to-day support  Connects inhouse IT-system with system of service provider Managed Service Providing  Operation focused  Delivers specialised services and the tools to connect to  Provides day-to-day support  Connects inhouse IT-system with system of service provider

6. Integrating Managed Services into SAP EH&S  What benefits can you have by using Managed Services  less costs (20-30%)  more flexibility  access to additional expertise  reduced liability  leaner EH&S IT implementation

7. Integrating Managed Services into SAP EH&S  Why does this result in a leaner and cost efficient implementation (I.)  Local rules implementation and maintenance becomes obsolete  No customisation needed for areas covered by service provider  Base Content (e.g. regulatory content, templates) is maintained by service provider

8. Integrating Managed Services into SAP EH&S  Why does this result in a leaner and cost saving implementation (II.)  hardware for mass updates not needed (e.g. regeneration of thousands of documents because of regulatory amendments)  Training for high sophisticated areas can be optimized (template definition)

9.  EH&S managers notice an increased demand for Managed EH&S Services  Content Management  Regulatory Document Management MSDS Tremcard  Regulatory Online Checks Import/Export control Classifications  Regulatory Reporting Integrating Managed Services into SAP EH&S

10.  What creates the increasing demand for Managed EH&S Services  Cost pressure  Increased requirements due to globalization of the business Business expanding faster than the internal infrastructure can support  Workload peaks through mergers, divestments, regulatory amendments  Shortage of EH&S experts in the labour market Integrating Managed Services into SAP EH&S

11.  What turns a Managed Services into integrated Managed Services  Seamless process integration between customer and service provider  Customer and supplier IT integration  Compatibility of data input and data results  Transparency of work progress and costs Integrating Managed Services into SAP EH&S

12.  What do we have to expect for EH&S within the next years  Specialised EH&S service provider  Particularly for SAP EH&S customers an increasing number of service providers  SAP EH&S will support this through connectors

13. Customer Backoffice Service provider EH&S Processes SAP EH&S SAP EH&S for service provider Portal Efficiency by standardizing Integrating Managed Services into SAP EH&S Product Safety Hazardous Material Mgmt. Dangerous Goods Mgmt. Industrial Hygiene OHWaste

14. Integrating Managed Services into SAP EH&S Process Know-how Domain Expertise Product Safety Industrial Hygiene Dangerous Goods... IT-Center Software Tools Knowledge-Center Expert Know-how (Rules) SAP EH&S Bundled offering for customer Center of Expertise

15. XML Interface Inhouse EH&S System Service Provider initiate translations store in core repository quality management create new phrase submit (new phrase and order for translations)........ store in local repository send back.............. submit to translators really new phrase? compliant phrase? propietary phrase get back translations Integrating Managed Services into SAP EH&S Integrated Translation Services

16. Integrating Managed Services into SAP EH&S Integrated MSDS Authoring create a new recipe Submit (components, regions, languages)........ store local repository send back.............. (MSDS docs, indexed data) create country documents classify recipe create master document track customer context Backoffice recipes, submitted documents phrase catalogue, expert rules, regulatory database, templates, WWI- Server Component assesment

17. Integrating Managed Services into SAP EH&S Regulatory Checks (e.g. import restrictions) create new recipe submit (components, country)........ store local for shipment or distribution process send back.............. (result per country, comp- classifications) interpretation track result for monitoring classify components inventory rules

18. Integrating Managed Services into SAP EH&S Pricing structure of services  Initial setup costs  Transactional based pricing e.g. per MSDS per check  Demand oriented can be used for full scope can be used for product subsets

19. Integrating Managed Services into SAP EH&S How can a cost advantage be achieved  By creating synergy between customers  Able to invest in special software solutions for service provider  More even and predictable workload  Overhead costs spread over a larger customer base

20. Integrating Managed Services into SAP EH&S  What will come within the next 12 months for SAP EH&S customers  Customers in Europe are already using Managed Services for SAP EH&S  Partners in the US are interested in offering Managed Services for SAP EH&S customers  Services will be mainly in Regulatory Compliance area (Chemical, Automotive, HiTec Industry…)  ‚Managed Service Plug In‘ for SAP EH&S will be available

21. Integrated Managed Services will improve your TCO for SAP EH&S - leaner implementation - less maintenance - more flexibility Integrating Managed Services into SAP EH&S Will reduce your total costs for regulatory compliance

22. Copyright © 2003 Americas’ SAP Users’ Group Thank you for attending! Please remember to complete and return your evaluation form following this session. Session Code: [3512]