Collaboration in the Business NetworkOverview

Siddharth TapariaMarch 8, 2012

© 2011 SAP AG. All rights reserved. 2

Companies are increasingly doing business across boundaries

Business networks are both internal and external

Joint Ventures

Sales Office

Manufacturing Site

Supplier

Plants

DistributionCenters

DistributorsPartner

Regional Offices

Headquarters

RegionalHeadquarters

Subsidiary

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“…thanks to an ever-more-globalized business environment, more large companies now see attractive market opportunities beyond their borders, further highlighting the need to establish an efficient B2B infrastructure with local subsidiaries and suppliers.Gartner, 12 October 2010, Market Trends: Application Infrastructure and Middleware Software, Worldwide, 2009-2014

”

External

Businesses Are More Reliant on Their Network of Partners than Ever Before

Trend #1: Increasing Complexity of Network New markets, mergers and acquisitions, global supply chainIncreasing number of business partners and subsidiaries

Trend #2: Accelerated Speed of BusinessNew product and services introductions; new suppliers and partners Rapid partner on-/off-boarding due to changing market conditions

Forrester Consulting, Joint Industry EDI/B2B Survey, March 2010

0

5,000

10,000

15,000

20,000

25,000

1,000+

Interfaces

Partners

500250 750

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Problem: Increased Costs, Operational Discontinuity, and Constrained Growth

20-37 days to enable a partner; 90% of ERP projects delayed by B2B integration- causing backlogs that hamper future growth

Manage Complexity

Manage Change

CXO

$15,000 internal cost per partner interface

57% experienced production outages due to lack of B2B connectivity -production outages, supply chain disruptions, compliance & legal issues

Manage Costs

Line of BusinessTechnology

Now Future

Aberdeen Group, July 2006; AMR, SAP Value Engineering and Team Analysis

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Challenge: Manage Costs and Complexity NOW, without Compromising the FUTURE

Simplify landscape by eliminating point to point integrations; rich content repository of partners

Extend the value of your existing investments without rip/replace; Minimize exposure to risk of/process breakpoints; ensure compliance and regulations

Fast start with predictable costs

Consistent foundation that enables you to connect , transact, collaborate witha collaborative business network at the speed of business

+ +

Now Future

SAP Value Engineering and Team Analysis

Manage Complexity

Manage Change

Manage Costs

Line of BusinessTechnology CXO

© 2011 SAP AG. All rights reserved. 6

Why Information Interchange OD Is Both a Preferred B2B Solution and a Foundation for Overall Business Network Needs

Easy to connect: Instantly access an Open, industry-optimized global business network with 60,000 partners. Eliminate expensive point to point connections with Crossgate Content repository

Plug and Play with new partners using pre-built partner profiles; Ready-to-run B2B content maintained over lifecycle

Processes, compliance, regulation or partner interface changes updated by SAP

Reduced and predictable costs in the long term

Easy to Extend: Deep B2B pre-integration within SAP Business Applications. Automatically comply with government and customer mandates fore-commerce

Easy to Deploy: Fixed Price, Full Service offering with cloud based (on-demand) deployment

+ +Manage Complexity

Manage Change

Manage Costs

1

2

3

Now Future

© 2011 SAP AG. All rights reserved. 7

Easy to Connect: Instant Access to an Open, Industry-optimized Global Business Network with 60,000 Global Partners

SAP Business Network

60,000+ PartnersConnectTransact

Collaborate

Production LSP

Mfg. Warehouse

Supplier

GovernmentRetailer

DistributorFinancialServices

LSP

Bank Others…

YOU

Eliminate expensive point to point connections with IIOD Content repository

1

© 2011 SAP AG. All rights reserved. 8

3rd Party Solutions

SAP Netweaver Process Integration

SAP ERP

SAP ByD

SAP Procurement

SAP Supply Chain Management

SAP and Non-SAP Solutions

Warehouse

End customer

…

Financial Services, Government

Logistics Service Providersand Carriers

Retailer

SAP and Non-SAP Solutions

Financial Services, Government

Productionsites

Suppliers

LogisticsServiceProvidersand Carriers

Outsourced Manufacturers

Orders In-/Outbound

Orders Ack. In-/Outbound

Invoice In-/Outbound

ASN In-/Outbound

Delivery Forecast In-/Outbound

Remittance Advice In-/Outbound

Delivery JIT In-/Outbound

Inventory Report In-/Outbound

Self Billing Invoice In-/Outbound

Shipment In-/Outbound

Enterprise Service

Other Processes, Docs, etc.

IIOD IIOD

…

Leverage Ready-to-run B2B content maintained over lifecycle

2Easy to Extend: Deep B2B Pre-integration with SAP Applications for Mission Critical Processes

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Ability to Grow Without Being Constrained by IT Resources in-house

3Easy to Deploy: IIOD Provides Cloud Based B2B Service that Enables Predictable Cost and Flexibility

Current Point-to-Point Approach Central B2B Content Repository – Integrate Once

Customer

Supplier

LSP

Banks

Gov’t

Etc.

Customer

Supplier

LSP

Banks

Gov’t

Etc.

SAP IIOD

Customer

Supplier

LSP

Banks

Gov’t

Etc.

Customer

Supplier

LSP

Banks

Gov’t

Etc.

© 2011 SAP AG. All rights reserved. 10

Proof Points: How SAP Is Delivering Value for Our Customers

Volkswagen achieved close to 100% adaption of paper-based invoices and credit memos with 10,000 dealerships and suppliers.

Manfred Heise, Volkswagen AG

We want to keep our internal resources focused on value-added strategic business activities, so outsourcing our B2B enablement was the perfect solution.

Kathy Pramik, Brown Forman AVP & Director of Enterprise Systems

After only a year with Crossgate we’ve already seen a return on our investment and we are looking forward to many more years of success.

Chris Caracena, Director IT, Bway Corp

Issue of spare parts invoice for all 1,200 European dealerships electronically enabled in less than 3 months.

Thomas Riech, Suzuki Europe

“

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“

”“

”

“

”

© 2011 SAP AG. All rights reserved. 11

SAP Provides The Foundation to Build a Best-Run Collaborative Business Network

24standardized process interfaces replaced 655 point-to-point mappings

50%greater efficiency and improved customer satisfaction

600business partners connected for 8 processes and 4 million documents

100%paperless within the first 8 weeks with 1,000 suppliers

“21% of Laggards indicate having the ability to collaborate with a network of key suppliers versus 65% of Best-in-Class companies. 33% of Laggards indicate the ability to collaborate with a network of key customers versus 56% of Best-in-Class Companies. B2B Integration and Collaboration: Strategies for Building a ROI Business Case, Aberdeen Group, June 2011

”

© 2011 SAP AG. All rights reserved. 12

Efficient and effective collaboration within the business network is key

Connectivity and transactional efficiency with business partners and subsidiaries

Content and analytical insights about suppliers, customers, consumers, competitors…

Effective people-to-people collaboration with business partners and customers

Extended reach into the global partner community and end-customers to manage complex and dynamic interactions

© 2011 SAP AG. All rights reserved. 13

TransactDeploy Standardized, pre-packaged best practices for multiple line of business’s and functions that integrate to business process

CollaborateExtending Business Network into people to people centric business social collaboration

ConnectOn-board and off board partners quickly without worrying about future changes in network’s standards

Running a Business Network Goes Beyond B2BFour key aspects: connect, transact, collaborate with real-time content and insights

Real-Time Content & InsightsHigh quality, real-time information delivered at right time and right context to effectively drive business change

© 2011 SAP AG. All rights reserved. 14

B2B Connectivity (IIOD/Crossgate)

(Available today)

SAP IIOD Is Your Foundational Step in the Business Network Journey with SAP

SustainabilitySupply Chain & Logistics Finance & Admin.Sales, Marketing

& Service

LoBs/Industries

ProcurementType of Business Network Solutions

ConnectivityB2B Integration

Services

TransactionsB2B-centric Applications/

Exchanges/ Hubs

Collaboration/ Business SocialIntercompany people-centric collaboration

ContentSyndicated Data, Market Research, Benchmarks

Foundational Capabilities/

Services

SAP NetWeaver Process Integration(Available today)

On Premise Cloud available today Cloud planned

Partner Exchange Network

Supplier Business Network

Supply Chain & Logistics Network

EH&S NetworkBank Services Network

© 2011 SAP AG. All rights reserved. 15

Partner exchange network

Order-to-Cash (SD/CRM)

(Available Today)

SAP Supplier InfoNet

(Available Today)

Supplier business network

Procurement Source-to-Pay

(Available Today)

Supply chain & logistics network

TM and SNC(Available Today)

B2B Connectivity SAP Information Interchange OnDemand

(Available today)

SAP has a comprehensive roadmap to help realize the business network vision

LoBs/Industries

ConnectivityB2B Integration

Services

TransactionsB2B-centric Applications/

Exchanges/ Hubs

Collaboration/ Business SocialIntercompany people-centric collaboration

Content & InsightSyndicated Data, Market Research, Benchmarks

Foundational Capabilities/

Services

EH&S networkBank services network

E-invoicing(Available Today)

SAP NetWeaver Process Integration(Available today)

SAP StreamWork(Available Today)

SAP products and services: SAP Supplier InfoNet, SAP Developer Network, SAP Customer Relationship Management, SAP Transportation Management, SAP Supply Network Collaboration, SAP Sourcing and Procurement Optimization, SAP E-Invoicing for Compliance OnDemand

Type of Business Network Solutions

Business Network Foundation Services

On Premise Cloud

SustainabilitySupply Chain & Logistics Finance & Admin.Sales, Marketing

& Service Procurement

© 2011 SAP AG. All rights reserved. 16

Why Leading Organizations Choose SAP?SAP software touches 60 percent of the world’s transactions

Man

age

Com

plex

ity

Flexibility and Speed Now Now and Future

Now

Now andFuture

Costs that continue to grow overtime with new projects that are time-and material-based

‘Duct tape’ integration of B2B to business processes leads to risk of breakpoints

Niche vendors often provide connectivity to one type of partners (e.g. suppliers) or single industry, reducing flexibility

Other Vendors

SAPPredictable costs that allow scalability with a fixed price model

Prebuilt integration to business processes that helps reduce complexity

Content repository allows you to integrate once and re-use standard interfaces across the business partner network increasing speed

© 2011 SAP AG. All rights reserved. 17

Learn How You Can Get Value Today:Information Interchange Enables Both SAP and Non-SAP Customers

SAP and non-SAP Customers can Engage in a B2B process discovery session today

External data collection on environment and processes

Onsite review– Integration points– Community enablement– Global compliance

Outcome – recommendations

For more information visit http://b2b.ondemand.com

Thank you!

To learn more about our solution please visit www.sap.com/scpm