© 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
© 2011 SAP AG. All rights reserved. 3
“…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
© 2011 SAP AG. All rights reserved. 9
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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“
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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
”
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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