Upload
brian-poole
View
215
Download
0
Tags:
Embed Size (px)
Citation preview
DRIVING CUSTOMER SUCCESS
Schroder Salomon Smith BarneyInvestor Conference
New York, NY – May 22, 2002
Nils HerzbergSVP, Industry Business Sector Manufacturing
SAP AG
SAP AG 2002 2
Safe Harbor Statement
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “believe,” “estimate,” “intend,” “may,” “will,” “expect,” and “project” and similar expressions as they relate to the Company are intended to identify such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect the Company’s future financial results are discussed more fully in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including the Company’s Annual Report on Form 20-F for 2001 filed with the SEC on March 28, 2002. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
SAP AG 2002 3
Today‘s Customer Requirements
All Customers Want Quick ROI Reduced Cost of Ownership Protection of existing IT
investments Lower switching costs
Many Customers Want Tightly integrated targeted
solutions Complete end-to-end
solutions Guaranteed mission
readiness
SAP AG 2002 4
How to capitalize on existing IT investments ?
ERP legacy~15 systems
ERP non-SAP~25 systems,
different versions
Technical systems
Trading
CollaborativeEngineering
e-Sales
SAP R/3~30 systems,
Versions 3.1I - 4.6B
E-Procurement10 units
SAP MarketsEnterprise Buyer
Professional Edition
15,000 interfaces
Development cost:~ 75,000 USD / interface
Costs of ownership: ~ 10,000 USD / year / interface
Overall:
150 Mio. USD / year
Challenge: Cost of Integration
The Cost of Integration – Customer Reality
SAP AG 2002 5
mySAP Technology Provides the Infrastructure ...
mySAP Technology
Exchange Infrastructure
Portal Infrastructure
Web Application Server
Leg
acy
/ Th
ird
Par
ty
SA
P R
/3 E
nte
rpri
seS
AP
R/3
En
terp
rise
... to integrate several applications from different vendors to form an open but consistent e-business platform
Infra-structureServices
Security
Global Standards
IT Land-scape Mgmt. P
artn
er S
yste
mP
artn
er S
yste
m
myS
AP
CR
Mm
ySA
P C
RM
......
myS
AP
SC
Mm
ySA
P S
CM
SAP AG 2002 6
Improve Bottom Line - Adaptive Supply Chain Network
Unilever East Asia Pacific
Integrated mySAP SCM and mySAP BI provides consolidated transparent information.
Solution: mySAP SCM Make-to-stock
(Collaborative Demand Planning)
Direct Procurement(Supply Chain Exchange)
Replenish-to-shelf(Vendor Managed Inventory)
e-Logistics Performance Management
(Analytical Web Services)
Benefits Reduced inventories Lower transportation cost Reduced cash-to-cash cycle Improved customer retention
Replenish-to-shelf
PerformanceManagement
Coordinator
Carrier
Supplier
Promotion Planning
Direct Procurement
Supply Chain Exchange
Retailer
e-Logistics
SAP AG 2002 7
Manage Change - Role-Based Organizations
Solution Review the content of
SAP’s Role Library (Best Practices for mySAP.com)
Adapt to corporate objectives (mySAP Enterprise Portals)
Build role-based organization (mySAP HR)
Benefits Applies directly Accelerated business
transformation Manage-by-exception Personal productivity
(+10-50%)
Roles
Workflow
BusinessRules
11
22
33
ChangeChange
Execution
Exceptionhandling
Education
AS WAS
TO BE
General MotorsIt is critical to have a portal like this to gain efficiency in both our internal processes as well as our processes with our customers.
SAP AG 2002 8
Customer Segmentation Different offering for
different needs
Customer EngagementLifecycle
Creating value across the entire lifecycle
mySAP.com Combining openness and
flexibility with integration
Partner Value Net Unique ecosystem
SAP Field Operations Solution portfolio mgmt.
SAP and our Customers: Building Partnerships
CorporateGovernance
CEL
Partner Value Net
Service Infrastructure
SAP AG 2002 9
6,265 mill. € Revenue
25,000Employees
15,000 Customers
in 120 Countries
One-Step Business
1999/2000
SAP Milestones over 30 Years
0.3 mill. € Revenue
9 Employees
R/1
1972
5.1 mill. €Revenue
60Employees
50 Customersin 2
Countries
R/2 Mainframe
1979 . . . . .
424 mill. € Revenue
3,200Employees
2,800 Customers
in 35 Countries
Client/Server
1992
7,341 mill. € Revenue
29,000Employees
18,000 Customers
in 120+ Countries
2002
Smart BusinessSolutionsmySAP Technology
SAP AG 2002 10
Growth Drivers 2002 and Beyond
2002 is expected to be another challenging year, software sales trends continue to be unsettled in a tough economic environment
2002 sales to be expected up by around 15% 2002 operating margin excl. stock based compensation and TopTier
acquisition cost to be expected up at least 100 basis points (2000: 20%) Operating margin excl. stock based compensation and TopTier acquisition
cost mid-term target of 25% License revenue growth drivers: CRM, SCM, Technology & ERP Migration path to mySAP.com:
Currently ~25% of global customers run mySAP.com ~15% of R/3 customers have migrated to mySAP.com By 2005: 80-90% migration to mySAP.com
DRIVING CUSTOMER SUCCESS
Schroder Salomon Smith BarneyInvestor Conference
New York, NY – May 22, 2002
Nils HerzbergSVP, Industry Business Sector Manufacturing
SAP AG