expert communities: co-innovation driving business value

Expert communities:Co-innovation driving business valueBuilding a culture of community

Mark YoltonSenior Vice PresidentSAP Community Network

SoftSummit 2008October 21, 2008

© SAP 2008 /

Expert communities:Co-innovation driving business valueAgenda

1. SAP’s market leadership position1.1. Corporate strategy1.2. SAP communities and value creation

2. SAP community network: Success on many levels2.1. Business network transformation2.2. SAP community network mission

3. Building a culture of community3.1. Believe, think, do3.2. Innovation unleashed

4. A continuum that leads to value4.1. Evolution of community participation4.2. Evidence of value creation

© SAP 2008 /

Our strategy

Expanding our portfolio for small and midsize enterprisesPowerful and affordable solutions for the unique needs of every business

Empowering business usersImproving performance management with trusted data and built-in analytics

Enhancing our offerings for large enterprisesDelivering innovation without disruption, maximizing the value of current investments andaligning IT with strategy

Establishing a new IT architecture for businessBusiness process platform solutions leveraging enterprise SOA for improved adaptability,reliability, and overall TCO

© SAP 2008 /

Summary of SAP today

SAP AG in 2007 revenues: €10.25 billionAround 75,000 companies run SAP softwareProviding more than 25 industry solutions51,447 SAP employees (June, 2008)

12 million users in 120+ countries team with us to…Integrate their business processesExtend their competitive capabilitiesGet a better return on investment at a lower total cost of ownership

Unique partner ecosystemMore than 1.4 million community members (SDN and BPX)18 Industries and 11 Business Process in PracticeTopics in BPXMore than 1,800 partner solutions certified for SAP NetWeaver

© SAP 2008 /

The SAP communities drive business value

Many businesses can create stickiness by building usercommunities. Every year, for instance, software company SAP(SAP) hosts conferences where customers can meet with ITexperts, software developers, and, most important, each other.These aren’t sales events per se, but you can be sure thatattendees leave with a feeling of partnership with SAP thatcontributes to the company’s steady share gains.

Jack and Suzy Welch

The Welch WayBusiness Week, September, 2008

“

THE

WELCH WAY

© SAP 2008 /

Increasing core enterpriseapplications share gains

Engi

neer

ing

Services

Infrastructure

Pers

onal

Prod

uctiv

ityEnterpriseApplication

Software

SAP33.7%

(+7.7 pp yoy)

ORCL17.1%

MSFT3.5%

$38,1bn

Global Share Q2/2008

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MSFT2)

SAP1)

ORCL2)3)

Rolling 4 Quarters Based on Application SSRS Revenues

Source: SAP internal analysis based on Company Data and Financial Analysts Estimates as of Jul 21st 20081) SAP includes Business Objects, internal estimates based on GAAP revenue from continued operations2) Only Business Applications GAAP revenue considered. Fiscal year is not calendar year (e.g. SAP Q1 vs. Oracle Q3).3) Oracle includes PSFT, RETK, SEBL, IFLX, STEL, HYSL, AGILSSRS is Software and Software related Services = Software revenue + Support revenue + Subscriptions and other software related services revenue

SAP’s leadership in market share is aconsistent trend over time

Rest ofMarket

Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q108 Q2 08E

59.2% 58.2% 56.6% 56.0% 55.2% 53.7% 52.3% 51.0% 48.8% 47.9% 45.7%

2.6% 3.5%

12.8%

17.1%

33.7%32.6%

31.9%30.3%

29.2%28.2%

27.5%26.5%

25.9%25.6%

25.4%

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The SAP Ecosystem makes headlines

SAP has set the standard—certainly within the tech industry—and offers a goodexample of the potential here. SAP is one of the leaders in the scale, diversity, andintegration of its vast ecosystem.”John Hagel and John Seely BrownHow SAP Seeds Innovation,Business Week, July 2008

“

If SAP pursues it the right way, the route of communities can be a powerful strategy…Ican see this as a competitive advantage against Oracle and other vendors. Othervendors don’t have the same approach to communities; they are more instance-oriented and unsophisticated.”

Stephen HendrickSAP Tech Ed Las Vegas Highlights,IDC

“

© SAP 2008 /

Business networks are thenew competitive differentiator

1990s 2000s 2010s

Competitive Differentiation

Business ProcessReengineering+ERP

Operational EfficiencyBusiness NetworkTransformation+Enterprise SOA

© SAP 2008 /

…To “build to adapt”From “build to last”…

Network-readiness and ongoing portfolio optimization

Landscape shifts aredriving business transformation

Agility and innovation

Connect and collaborate

Co-Innovation

Organic

Fluid

Consolidation and efficiency

Command and control

Internal R&D

Mechanical

Rigid

© SAP 2008 /

Communities enrich SAP’s ownbusiness network transformation

Evolving role of communities

Today

Integrated Communities

Impa

ct o

f Com

mun

ities

Thriving Community

Borderless Enterprise

Time

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C

SAP

C

P

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C

C

SAP

C

P

P

C

C

SAP

P

C

P

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Communities founded on“Community 2.0” principles

SAP Developer NetworkBusiness Process Expert CommunityBusiness Objects Community… and SAP Tech Ed

Wikis, forums, blogs, events

BenefitsFaster, broader adoption with highercustomer satisfactionStronger affiliation to SAP and partnersExtensive co innovationTransforms relationshipsPositive economic impacts for all

Wikis

Forums

Blogs

Events

Business network transformation and web 2.0intersect – at the SAP Community Network

SAP Community Network

© SAP 2008 /

SAP Community Network Mission

Developers

Business Analysts

Consultants

BENEFITS

COLLABORATE CO INNOVATE

CONNECT

The SAP Community Network accelerates SAP product adoption byempowering the community to connect, collaborate and co-innovate

using social networking disciplines, which results in identifiable andmeasurable benefits for members in a variety of roles

© SAP 2008 /

eLearning

Modeling Tools

Public DiscussionForums

Blogs

Networking Events

Customer & PartnerContributors

SAP ThoughtLeaders

Education /Awareness Topics

Business Maps

Content Library

Wiki Premium Content

Downloads

Physical Events

Getting Started

ContextuallyRelated Topics

Top Contributors

AdvancedSearch

FeaturedContent

Whitepapers& Articles

Community 2.0 Platforms for communication,collaboration, co-innovation

Best Practices

Community TV(video)

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Strong performance metricsfocused on commitment

Members

Traffic

ForumMomentum

Contributors

1.4 million members>200 countries25,000 new members/month

600,000 unique monthly visitors2 million unique visits per month20 million pageviews per month

6,000 posts per day in 200+ forums1 million topic threads4 million total messages

100,000 have contributed60,000 in 2007 alone5,800 highly active2,000 bloggers

© SAP 2008 /

Community profile

SAPCustomers28%

IndependentSoftware Vendors (ISV)

12%

System Integrators10%

IndependentConsultants

23%Other*14%

Source: SAP Internal Research,Survey February 2008

A unique audience

Champions at customer /prospect organizations

Influencers of purchasing decisions

Hard-to-reach audiences such asindependent consultants

Majority are decision makers

62% of customer members aredirectly involved or highly influentialin purchasing tools, software,services, and education

SAP online community profileDiverse mix representative of our ecosystem

* SDN & BPX communities

* Other = decline to state relationship

SAPEmployees13%

© SAP 2008 /

SAP Community Network’s components

Developers, consultants, analysts, systems integrators, SAP

Ask and answer technical questions

Get expert advice; share detailed solutions

Find tools and documentation for implementation and operations

Business analysts, enterprise architects, consultants, SAP

Best practice sharing by industry and application type (CRM, ERP)

Discuss business process, solutions and software implementation

Report and dashboard designers, enterprise developers, ITprofessionals, SAP

Resources and insight to transform data into information for betterdecision-making

Business intelligence and information management solutions

SAPDeveloperNetwork

BusinessProcessExpertCommunity

BusinessObjectsCommunity

© SAP 2008 /

Building a culture of communitywithin the SAP Community Network

DO

THINK

BELIEVE

Tools

Programs and incentives

Core beliefs

© SAP 2008 /

Core beliefs

Core beliefsPeople are good and want to help

Communities are self-policing

We can create a participatory culture

Governance is needed to some degree

DO

THINK

BELIEVE

© SAP 2008 /

SAP Mentors

Role models for the community, providing passion and energy

Mentors take on a leadership role

Create a sense of belonging

Candid feedback and direction to SAP

Trusted semi-private communication channel

Special status to exceptional and high-value members of ourSDN, BPX and Business Objects communities

DO

THINK

BELIEVE

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SCN Top ContributorsDO

THINK

BELIEVE

Top three point earners in each of29 categories

Special recognition at Communityevents and on line

Recognized for great contributionsand focus on improving knowledgein the community

© SAP 2008 /

SAP Community NetworkUN World Food Programme

Community knowledge contributions areconverted into donations

€ 100K at 2.5M points (achieved)

€ 200K at 3.5M points (target)Asia (Laos)

Africa (Ethiopia)

Latin America (Colombia)

For calendar year 2008

DO

THINK

BELIEVE

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Tools enable rich exchangeTHINK

BELIEVE

DO

twitter Facebook RSS

WikisForums

Blogs eLearning Downloads Subscriptions

Blogs

© SAP 2008 /

Our culture enables and unleashes innovation

DO

THINK

BELIEVE

INNOVATION

Tools

Programs and incentives

Core beliefs

© SAP 2008 /

InnoCentive partnershipre-defines collaboration

Global, prize-based open innovation marketplace

Website where smart, creative people solve important challenges intechnology, science and business

SAP, customers and partners sponsor challenges for SAP communitymembers to solve

Seekers in exchange for SolutionsSolvers in exchange for Cash Rewards

SAP launches SAP Technology and Innovation Pavilion

DO

THINK

BELIEVE

INNOVATION

© SAP 2008 /

Enterprise Social MessagingExperiment (ESME)

“ ESME is a case study in the power of community, the dynamics that can emerge, the value ofactive cooperation between ‘suits’ and ‘geeks’ and the results that are possible. Put anotherway, how else might the germ of an idea emerge to become a functional application in lessthan three months without the benefit of community? ”

Dennis HowlettSAP Mentor

Blogger and consultant on social media projects

Community-based project

DO

THINK

BELIEVE

INNOVATION

© SAP 2008 /

The Business Process Expert (BPX)Community eBook

Process First describes the evolution ofthe Business Process Expert , a role thatadds value by increasing effectivecommunication across technical andbusiness boundaries

Written through collaborative contributionsfrom the BPX community over a period ofmonths in 2008

DO

THINK

BELIEVE

INNOVATION

© SAP 2008 /

The continuum:Adoption Co-Innovation Value Creation

Adoption Co-innovation Value Creation

PassiveParticipationParticipants comeon line fordownloads, articles,eLearning

FullyEngagedRealizing value forthemselves andtheir companies byputting innovationsinto practice

ActiveParticipationParticipants beginengaging in blogs,forums, wikis,projects

© SAP 2008 /

Evolution of community participation%

of M

embe

rs

Connect

90%

Collaborate

9%

Co-innovate

1%

Time in Community

As members’ length of time in the community grows, they progress from merelyconnecting, to collaboration, to true co-innovation. Conversely, as engagementdeepens, the numbers participating at such levels declines. This core of deeplyengaged members drives the passion in our community.

© SAP 2008 /

“ Extending our SAP solution toinclude unemploymentcompensation tax required a verydifferent business process.Through the BPX community, wewere able to tap into a network ofexperts.”

Louis PanebiancoProject Manager

Florida Department of Revenue

Ecosystem in action:Florida Dept. of Revenue achieves 9 to 1 return on investment

Seeking to extend its SAP tax and revenue managementsolution, Florida Department of Revenue tapped into theexperts at the SAP Business Process Expert community,who helped the agency model its new business process.

Easily modeled a complex tax-relatedbusiness process that supports changingagency needs

FDOR’s investment of $90 million has resultedin financial benefits of more than $844 million,which is a 9-to-1 return on investment.

FDOR improved service, reduced costs, andencouraged more uniform compliance withtax laws.

© SAP 2008 /

SDN created value for UK’slargest Oil & Gas company

DO

THINK

BELIEVE

“ Being able to use SDN effectively gives you a distinct advantage…The SAP ecosystem, and SDN in particular, is extremely valuable for meand my company. ”

Harald ReiterProject Management Professional

SSIP, LLC

© SAP 2008 /

“We talked to a number of SAPmentors and created a roundtableabout Genesis because it’s reallytargeted at enterprise knowledgeworkers and we wanted to get theirinput early on.”

Dan McWeeneySoftware DeveloperAdobe Systems Inc.

Ecosystem in action:Adobe leverages communities in product development

Adobe Systems Inc. actively engaged in the SAP® DeveloperNetwork (SDN) and Business Process Expert communities forearly input from its target market on a proof of concept forProject Genesis, a desktop application for enterpriseknowledge workers built on Adobe AIR.

Adobe will now launch a product pre-testedwith the community, increasing sales potentialand end-customer satisfaction

Armed with feedback on product usage invarious verticals, Adobe developers can nowresolve key integration issues in advance

Adobe created a wiki on SDN to gather specificfeedback from community members and toanswer questions on the project’s direction

© SAP 2008 /

Connect with peers

Access subject matterexperts

Join co-innovationprojects

Customers

Demonstrate expertiseto build business

Faster time-to-market

Early insight to customerneeds

Partners

Unfiltered marketfeedback

Expert input on productroadmap

Can encourage adoptionthru direct influence

SAP

Our communities drive business value to…

Thru…

Connectivity, Rich Assets, Exclusive Content, Career Enhancement

© SAP 2008 /

Building a culture of communitycan drive business value

SAP’s commitment to communitydrives business value andcompetitive advantage

SAP has manifested businessnetwork transformation throughsuccessful implementation of theSAP Community Network

The cultural foundation of the SAPcommunities can be summed as“Believe, Think, Do”

The SAP communities havereached a point where real valueis being derived

© SAP 2008 /

Mark YoltonSenior Vice PresidentSAP Community Network

http://bpx.sap.comhttp://sdn.sap.comhttp://boc.sap.comhttp://sapteched.com

T 650-223-4621E [email protected]

Join Us and our SAP Community Network

http://bpx.sap.com/

http://sdn.sap.com/

http://boc.sap.com/

http://sapteched.com/

mailto:[email protected]

© SAP 2008 /

Free access to subject matter experts for fast implementation + issue resolutionMany support resources reduce TCOIncrease knowledge at low costConnect with peers and partnersCo-innovate by connecting experts with other experts for surprising results

Customers

Quick adoption and market ramp-upSpeed, agility, better decision making, risk reduction with rich insightsHigher customer satisfaction and loyalty; better retention, up-sell, and cross-sellImproved product and information quality with outside-in feedback on our products,services, processes, and customer experiencesSAP

Partners

Proof of strong commitment to ecosystem enablement and successLead generation for the ecosystemCo-innovation by connecting experts with others for surprising resultsGateway to solution certificationOur Ecosystem

Our communities drive business value to…

Subject matter experts for solutions, innovation, and market insightMany implementation and support resources reduce support costsDemonstrate expertise, generate leads to ~1M members globally

© SAP 2008 /

Leading Practices"How-to” GuidesWhitepapers, ArticlesNewslettersEnterprise Services Definitions, Business Mapsand Implementation

Exclusive Content

Configuration andOptimization ExamplesAudio / Video Demos, eLearningWidgets, Wizards, EditorsPreviews, Trials, Add-OnsTools, Analyzers, Development KitsSolution ComposerDownloads

Rich Assets

Peer NetworkingEventsIndustry and Solution ForumsThought Leader BlogsCollaborative Wikis

Connectivity

Skills EnhancementMember-Granted PointsAwards ProgramAppreciation, StatusAwareness, VisibilityEducation, DevelopmentSkills CertificationSAP Mentor Program

Career Enhancement

Our communities deliver value thru…

expert communities: co-innovation driving business value

Documents