the future of erp by bertrand andries
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The future of ERP and the
consequences for the industry
Bertrand Andries CONFENIS 2012
September 2012
Our customers fly more than 1.1 billion of the world’s passengers yearly.
Our customers produce more than
72% of the world’s beer.
© 2011 SAP AG. All rights reserved. 4 Public
Our customers produce more than 70% of the world’s chocolate.
© 2011 SAP AG. All rights reserved. 5 Public
Our customers produce more than 86% of the world’s athletic footwear.
© 2011 SAP AG. All rights reserved. 6 Public
From Operational Efficiency to Competitive Differentiation
Competitive
Differentiation
Business Process
Reengineering
+
ERP
Operational
Efficiency
Business Network
Transformation
+
Enterprise SOA
1990s 2000s 2010s
The Core: SAP Business Suite For Every Business and Every Process
PLM
Product Lifecycle Management
SCM
Supply Chain Management
CRM
Customer
Relationship
Management
SRM
Supplier
Relationship
Management
SAP ERP
Financials, Human Resources,
Logistic Execution,
Sales, Manufacturing,
Purchasing, Corporate
Services
Technology Platform
Portal – Integration – Master Data Management - Reporting
Service Oriented Enablement (SOA)
© 2011 SAP AG. All rights reserved. 8 Public
How to get to a Sustainable Cost Structure ?
Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home Imagine
We’re living in
a world of change.
Imagine a better run world A world of change
1 Billion people
engaged in
social networks
More mobile
devices
than people
15 Billion
connected
devices
by 2013
More data in
last 5 years than
entire history of
mankind
Global middle
class growing
from 2B to 5B
by 2030
Business
and personal
lives have
been blurred
Unprecedented
empowerment of people
Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home Imagine
2012 STRATEGY
APPLICATIONS ANALYTICS MOBILE TECHNOLOGY
& DATABASE CLOUD
FIVE MARKETS
In Memory (HANA)
SERVICES
Imagine a better run world A world of change
Fact:
More data has been created in the last five years
than in the entire history of mankind.
Implication:
Unlocking the secrets inside this data presents
breakthrough opportunities for businesses
Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home Imagine
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What is Big Data?
Volume, Variety and Velocity
Source: TDWI Big Data Survey
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Need a breakthrough technology Today's technology requires tradeoff
Broad
Deep
High Speed
Complex & interactive questions
on granular data
Big data,
many
data types
Fast
response-time,
interactivity
Broad
Deep
High Speed
Simple Real-time
Complex & interactive questions
on granular data
Big data,
many
data types
Fast
response-time,
interactivity
No data preparation,
no pre-aggregates,
no tuning
Recent data, preferably
real-time
Simple Real-time
No data preparation,
no pre-aggregates,
no tuning
Recent data, preferably
real-time
OR
© 2011 SAP AG. All rights reserved. 15 Public
SAP HANA is the only solution that does it all Delivering across 5 dimensions of modern decision-processing
Broad
Deep
High Speed
Simple Real-time
Complex & interactive questions
on granular data
Big data, many
data types
Fast response-
time, interactivity
No data preparation, no
pre-aggregates, no tuning
Recent data, preferably
real-time
© 2011 SAP AG. All rights reserved. 16 Public
In-Memory Computing
Technology that allows the processing of
massive quantities of real time data
in the main memory of the server
to provide immediate results from
analyses and transactions
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(Re-) Unification of Transactional Processing and Analytics
https://openhpi.de/
© 2011 SAP AG. All rights reserved. 18 Public
In-Memory Computing – The Time is NOW
Orchestrating Technology Innovations
HW Technology Innovations
64bit address space – 2TB
in current servers
100GB/s data throughput
Dramatic decline in
price/performance
Multi-Core Architecture (8 x
8core CPU per blade)
Massive parallel scaling with
many blades
Row and Column Store
Compression
Partitioning
No Aggregate Tables
Real-Time Data Capture
Insert Only on Delta
The elements of In-Memory computing are not new. However, dramatically improved hardware economics and technology
innovations in software has now made it possible for SAP to deliver on its vision of the Real-Time Enterprise with In-Memory
business applications
SAP SW Technology Innovations
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How?
Row and Column Store
Compression
Partitioning
In-Database Computing
No Aggregate Tables
Real-Time Replication
Insert Only on Delta
5 – 20x
1 TB Data = 100GB Memory
Column = Fast Queries
Analyze Large Data Sets
Complex Computations
Flexible Modeling
No Data Duplication
Fast Data Loads
Multi-Core CPUs
Large Memory Footprint
Computational Power
1m Faster Access than Disk
© 2011 SAP AG. All rights reserved. 20 Public
SAP HANA Ideal platform for real-time business
Core Business
Acceleration
Database
Operational
Reporting
Data Warehousing Predictive & Text Analytics
on Big Data
Real-time
Analytics
Real-time
Applications
Real-time
Platform
Mobile Cloud
Planning and
Optimization
Sensing and
Response
© 2011 SAP AG. All rights reserved. 21 Public
SAP HANA Ideal platform for real-time business
Real-time
Analytics
Real-time
Applications
Real-time
Platform
© 2011 SAP AG. All rights reserved. 22 Public
Data Warehouse
ETL
Copy
Operational Data Store
Calculation Engine
Query Results
Query Query/ETL
In-Memory database … continued … and pre-configure as a simple appliance
Operational Data Store
Indexes
Aggregates
Data
SAP HANA
© 2011 SAP AG. All rights reserved. 23 Public
In-Memory
Analytics ■ SAP HANA real-time
operational analytics
■ Complete BI Suite with BI 4 runs
on SAP HANA
One Store for Data
and Analytics ■ SAP HANA only persistence layer for
SAP Business Suite
■ SAP Business Suite optimized for
in-memory computing
■ Flexible real time analysis of
operations at non-aggregated
level
■ Real-Time operational
planning and simulation
capabilities: link to execution
■ Primary persistence and
optimized for SAP BW
■ Reduced landscape
complexity
■ Value chain transformation
Capabilities
Benefits
Next-gen
Applications ■ SAP BW fully running on SAP
HANA
■ SAP HANA platform for in-memory
apps
■ SAP Business Suite runs on
SAP HANA
■ Further optimization of BI 4 Suite
for SAP HANA
■ Industry and LOB Analytic Apps
“Innovation“
Mid-Term (Plan)
“Transformation”
Longer-Term (Plan)
SAP In-Memory Strategy Product Strategy and Plan
“Renovation”
SAP HANA 1.0
Ramp-Up since Dec 2010
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Sharpen marketing effectiveness
56x faster reporting: micro-targeted
customer offers
Accelerate monthly close & spending insight
75% reduction in CRM query
~23 to 6 seconds
Launch new products or markets
400x faster report execution: Predict
sales-trends in real-time
Remote roadside diagnostics in real-time
Analyze 15 years 1 TB data
in seconds
Deeper customer relationships
360 customer view and comprehensive
experience
SAP HANA Transforms both Businesses and IT
Reduce waste & fraud in government fund
<2 min for detecting 100,000 names over
90M records
Identify cancer DNA variants for treatment
216x faster results: 3 days 20 minutes
Improve diagnostic through pattern detection
300M records; analysis in 2-10 seconds
Predict customer purchase sentiment
Seasonality Analysis in 5 seconds
Improve labor utilization
1131x faster reporting time
“Perfect order” experience
60x faster real-time insights
© 2011 SAP AG. All rights reserved. 25 Public
There Are More Mobile Phones
Than Toothbrushes (5B vs 2.2B)
© 2011 SAP AG. All rights reserved. / Page 25
Imagine a better run world A world of change
Fact:
There are now more mobile devices on
Earth than there are people
Implication:
A business can now exponentially expand
its reach in a flash
Solutions People Results Purpose Innovations Ecosystem Join Us Imagine Home Imagine
© 2011 SAP AG. All rights reserved. 27 Public
© 2012 SAP AG. All rights reserved. 27
First 8 Quarters Cumulative Unit Shipments, iPod / iPhone / iPad
iPad iPhone iPod
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© 2012 SAP AG. All rights reserved. 28
First 13 Quarters Cumulative Global Android & iPhone Shipments
Android iPhone
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© 2012 SAP AG. All rights reserved. 29
Growth of Number of Devices vs. Number of People on Earth
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© 2012 SAP AG. All rights reserved. 30
India Internet Traffic by type, Desktop vs. Mobile, 2008 – 2012
Desktop Internet
Mobile Internet
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© 2012 SAP AG. All rights reserved. 31
Gartner predicts …
“By 2013, a typical Fortune 1000 corporation delivering B2E and
B2C applications will use at least 6 different combinations of
mobile platform, architecture and development tools”
“By 2014, 60% of Fortune 1000 corporations will have failed to put
a comprehensive mobile strategy in place, leading to considerable
overspending”
© 2011 SAP AG. All rights reserved. 32 Public
SAP Mobility Platform
Mobile Applications
Mobile Services
SAP’s Coverage: SAP Mobility Enterprise Solutions
1
2
3
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Why a platform?
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Unwired Platform
- Introduction
BlackBerry
iPhone, iPad, iPod
Android
Windows
Windows Mobile
SQL (JDBC)
WebService
REST
BAPI (JCo)
Odata
Netweaver Mobile
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
© 2011 SAP AG. All rights reserved. 35 Public
© 2012 SAP AG. All rights reserved. 35
The internet of things
REQUIRES
2012 And Beyond
APPLICATIONS ANALYTICS MOBILE TECHNOLOGY
& DATABASE CLOUD
HANA
SERVICES
© 2011 SAP AG. All rights reserved. 37 Public
Conclusions
Cloud, Mobile, in-memory and social networks are changing the IT landscape
High public adoption of some of the technologies
Business lagging behind in:
• Setting out strategies (public, mobile, information management and technology)
• identifying value scenarios
Requirements for IT education:
• Increase number
• Combination of mathematics and business acumen
• Combination of IT architectural and business strategy understanding
Combination of evolutions is powerful but not fully understood
• Big data + Cloud + Mobile + Social Networks + transactional excellence = ????
Societal, ethical and environmental impact
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