1. Hosted by SAP 2003: Your Technology and Business Roadmap Jim Shepherd Senior Vice President AMR Research

2. Hosted by Agenda SAP’s Business Strategy SAP’s Product Strategy SAP’s Technology Direction What Should You Worry About ? Maximizing The Value of Your SAP Investment

3. Hosted by SAP Snapshot $6.5B in FY01 Revenues Close to 70% from Maintenance and Services FY02 Goal: 5-10% Revenue Growth 18,000 Customers – 4,000 New Last Year 50,000 Installations – 120 Countries 21 Industry Solutions

4. Hosted by SAP’s Business Strategy Account Control- “The Safe Choice” Customer Lifecycle Management - “SAP Delivers Value” Services, Maintenance, & Add-ons New Markets and Channels

5. Hosted by SAP Business Strategy: Become Your “Trusted Partner” Infrastructure Consulting Infrastructure Consulting Infrastr. Software Infrastr. Software Technical Support Technical Support Infrastructure Support Infrastructure Support Business Software Business Software Business Consulting Business Consulting System Support System Support Out- sourcing System Integration System Integration System Integration System Integration System Integration* System Integration* Discover & Evaluate -> Implement -> Operate Hardware OS, DB,... Hardware OS, DB,... Strategic Consulting Application Layer Middleware Layer IT Layer Source: SAP AG

6. Hosted by SAP Business Strategy: “Extended Range of Services” New Maintenance Offerings Architecture Planning Custom Development Consulting System Integration Operations Planning & Optimization Hosting

7. Hosted by SAP Business Strategy: New Markets and Channels Source: SAP AG SAP Direct Sales Vertical Resellers Business One Centers Sales/Service Partners

8. Hosted by Product Strategy: A Box of SAP to Go Source: SAP AG

9. Hosted by Current Application Strategy The Ever Expanding mySAP.com Scalability : Business One and All-in-One The xApps (Cross-Applications) Framework SAP Portals R/3 Enterprise

10. Hosted by The Ever Expanding mySap.com Business PartnersWorld Internet Extranet Enterprise Group ENTERPRISE COLLABORATION Advanced Supply Chain Planning Customer Relationship Mgmt Business Warehousing Intranet R/3 Logistics R/3 Accounting R/3 HR R/3 Fulfillment... B2B Procurement Strategic Enterprise Management Knowledge Warehouse Comprehensive e-Business Solutions Industry-Add-ons Portals Marketplaces Supply Chain Hubs Collaborative Engineering E-Recruiting Electronic Bill Presentment & Payment Collaborative Forecasting Source: SAP AG

11. Hosted by SAP Product Strategy: Scalability mySAP.com Headquarters Factory Distributor SAP R/3 Enterprise SAP Business One Sales Subsidiary SAP All-in-One Exchange Infrastructure Source: SAP AG

12. Hosted by The xApps Framework Based Inside AG, Way to Bring Innovation Outside of Regular Product Cycles New “Cross Apps” Framework Layered on Top of R/3 and mySAP.com Goal: Supports SAP and 3 rd Party Apps Needed: Serve as “Fast” Bridge Between SAP Apps 1 st xApps Due 4Q02 (Resource & Program Management) SAP Has Identified 200+ Business Processes

13. Hosted by SAP WASWebSphereCICS SAP SAP Web Application Server 3rd Party App Legacy People Information Processes Portal Business Intelligence Exchanges Planning & Budgeting Click- stream Analysis Collab. Project Mgmt. Adaptive Supply Chain Mgmt. SCM Cockpit.net 3rd Party App SAP Product Strategy: xApps Source: SAP AG

14. Hosted by SAP Portals SAP Portal Integrate People SAP Business Information Warehouse Integrate Information SAP Exchange Infrastructure Integrate Processes Web Application Server and DynPro Shared Services: Security, Management, Globalization Source: SAP AG

15. Hosted by R/3 Enterprise SAP Web Application Server 6.20 Replaces Basis Server Provides J2EE and ABAP Support Common Foundation for all mySAP.com Components SAP R/3 Enterprise Extension For SCM SAP R/3 Enterprise Extension For FIN SAP R/3 Enterprise Extension For HR SAP R/3 Enterprise Extension For Travel SAP R/3 Enterprise Extension For PLM SAP R/3 Enterprise Core 4.7 All Existing R/3 Functionality Future Changes limited to: Legal Changes Defect Fixes Performance Enhancements

16. Hosted by R/3 Enterprise Rollout New “Ramp-up” Release Process 70 Customers Upgrading as of September 200 Expected by Year End Early Reports From Customers Are Positive Internal Customer Release Restricted Shipments Unrestricted Shipments 7/0212/02

17. Hosted by Key SAP Technology Components Source: SAP AG

18. Hosted by Exchange Infrastructure Multiple Integrations Paths: SAP RFC and IDoc, Files, and Standards (XML, SOAP) Integration Repository and Directory for Capturing Integration Rules During Design and Configuration IDoc RFC FileXML The Enterprise Supplier 1 Supplier 2 Oracle ERP Oracle ERP mySAP PLM Legacy ERP SAP R/3 XML E- Procure ment Exchange.Net Web Service Web Service Supplier 3

19. Hosted by SAP Web Application Server Integrate ABAP and J2EE Worlds Foundation for All SAP Products Today CRM 3.1 and R/3 Enterprise Development Tools Moved to Eclipse Framework SAP-Centric Solution -- Today Has Potential to Replace 3 rd Party App Servers in SAP Accounts

20. Hosted by Web DynPro Multi-Language and Multi-Device Support for User Interfaces Integrated Development Environment for Presentation Logic –Model and Develop Presentation Logic –Design and Compose User Interfaces Runtime Services –Runtime Infrastructure Support for Java and ABAP (JSP and BSP) –Tag Libraries –Device Independence –Internationalization SAP Web Application Server Presentation Layer Web Dynpro Business Layer J2EE/ABAP BSP, JSP* Tag libraries

21. Hosted by What Should You Be Worrying About ? Instance Consolidation New mySAP.com Functionality PLM, APO, Portals, CRM, etc. Release Strategy & Expectations Extended Deployment Internally Externally

22. Hosted by Maximizing Your Investment Competency Center -- Business Process Improvement Not Help Desk! Continuous Training & Education Enterprise Performance Management (EPM) Network Theory -- A system becomes more valuable as it touches more users Any ERP System Needs Better Public Relations