1. Hosted by How to Maximize the Benefits From Your SAP Investment Jim Shepherd Senior Vice President AMR Research

2. Hosted by 1. Extend your deployment Capitalize on the “network effect” Metcalfe’s Law: The value of a system increases as the square of the number of users of the system Each incremental user, department, or location significantly increases the aggregate value of your SAP system

3. Hosted by 2. Rationalize your application portfolio Integrating & supporting 3 rd party apps is a poor investment Heterogeneous systems: Constrain process improvement Slow response to change Lower employee productivity Complicate reporting and analysis Functional breadth is why you bought from SAP in the first place!

4. Hosted by 3. Consolidate systems & processes Better internal control & visibility Allow resource sharing & leverage Reduce IT costs Enhance customer service Improve supply chain speed & efficiency

5. Hosted by 4. Improve business processes Design new “end-to-end” processes Capitalize on SAP’s best practices Look for self-service and automation opportunities Extend processes to customers & suppliers Develop organization & metrics for continual process improvement

6. Hosted by Phases of Deployment Value Phase III Ongoing Improvement Site 1 Site 2 Site 3 Site 4 Site 5 Site 6 Financial Shared Services IT Savings Strategic Sourcing BP Improvement Phase II Consolidation Phase I Scattered Instances

7. Hosted by Typical Benefits Realization IT Operating Expense Reduction Business Operating Expense Reduction Additional Net Income 0 50 100 150 200 250 300 350 400 450 500 Benefits ($M) Cost of Consolidation Phase IIPhase III Reduced Materials Costs 2/3 of Benefit

8. Hosted by Process Improvement Structure Information Technology (IT) Executive Committee CxOs IT Governance Council Process Lead Process Lead CIO Business Unit Process Lead Process Lead BU Leader Business Unit Process Lead Process Lead BU Leader Program Management Office Finance Director Program Director Projects Processes Organization Process Improvement Office Process Owner Process Owner CPIO “One Company”

9. Hosted by Benefits Require the Correct Metrics IT’s Ability to Control Business’s Ability to Control High Low HighLow 1) Schedule & Budget 2) System Adoption 3) Improved Process KPIs 4) Actual Financial Returns Measure for Accountability Measure for Credibility “Definition of Victory”

10. Hosted by 5. Convert data to information Business monitoring & intelligence Planning & analysis Re-engineer decision making processes Push information to managers, users, customers, suppliers, etc. Take advantage of SAP products (BI, SEM, MIC, Portal, Analytics, Roles, etc. Investigate 100’s of partner products

11. Hosted by 6. Capitalize on SAP’s R&D investment You helped pay for it – use it! SAP investing > $1B per year New and improved functionality in existing products Enhanced vertical industry functionality New complementary products Better technology Learn what’s new since you bought it

12. Hosted by 7. Spend more on training & education Application knowledge starts eroding immediately Establish formal user certification requirements & enforce them Educate process leaders on new releases, products, & best practices Employee education is a great investment

13. Hosted by 8. Network, network, network … 80,000 installations + 12 million users = lots of experience, best practices, and real credibility Try to connect with other SAP customers at executive, IT, and business process levels Focus on innovative business processes – not “how much are you spending”