industry value network chemicals - american chemistry … · industry value network chemicals franz...

Industry Value Network

ChemicalsFranz HeroVP, IBU Director

Industry Busines Unit ChemicalsMarch 22th, 2007

© SAP AG 2006, Perfect Plant Americas GTM / 2

Industry Value Network for Chemicals

A process to bring together customers, partners and SAP focused on solving high value business needs anchored by SAP NetWeaver as the common platform to enable collaborative innovation andcomplete industry solutions.


IVN Member Roles and ContributionLeading-edge expertise, solutions, & collaboration framework

SAPIVN lead & sponsorIVN quality assuranceCollaboration frameworkSAP software SAP NetWeaver platform

System IntegratorsIndustry expertiseBest practicesImplementation expertiseComposite development

Technology VendorsInnovative technologyInfrastructure readiness Customers

Innovation needsSolution validationCo-innovation showcases

ISVsComplementary solutionsComposite development


The ISV Industry Value Network for Chemicals Today

CISUG VCICEAC


ISV Industry Value Network Build Process

CISUG VCI

Chemical

Ecosystem

Proposal

Customer

Verification

1

2

3

4IVN Launch

April 19, 2006

5 Grow

CompetitivenessSAP AffinityStrategic Fit

CEAC

White Space

Analysis06/2005

07/2005

09/2005

04/2006

2006, 2007 …


Open Ecosystem

ISV Partner Cooperation ModelsOpportunity & Commitment Level

Partner applications are certified to run on SAP NetWeaverISV products published via the Partner Solution CatalogInvitation to SAP events, and other promotional activities

Endorsed Business Solution

Revenue Share Agreement Joint business planningJoint Go-To-MarketSolution QualificationJoint sharing of product roadmapPartner product inclusion in SAP Solution MapsSAP 1st level supportVery selective, by invitation only

Partner product on SAP price listFull SAP rolloutSolution Validation SAP 1st and 2nd level supportHighly selective, by invitation only

OEM/Resell

IVN

Customers can choose from a wide array of products

Lowering integration and TCO by leveraging SAP NetWeaver components

Guidance by SAP for complementary and qualified partner products

Most complete solution portfolio aligned with SAP roadmap

High degree of solution fit and quality through solution qualification and validation

Reduced TCO through existing integration

Value to Customer


Business Models in Chemicals

R&D

Sales & Marketing

Manufacturing

Logi

stic

s O

rche

stra

tion

R&

D

Sales & Marketing

Logi

stic

s O

rche

stra

tion

Manufacturing

R&D

Cost Leadership

Reliable delivery ofconsistent quality atlowest price

Superior PortfolioManagement

Having optimalproduction/supplychain synergies

ProductionFlexibility

Deliver the rightproducts on request

Keep license to operate Effective compliance adaptation

PortfolioMasters

CommodityProducers

Product Specialists

Product Innovators

Cor

e C

ompe

tenc

y R&D Orchestration

Innovative andcustomer specificapplication offering

Con

trac

t M

anuf

actu

ringSales &

Marketing

Logistics Manufacturing Orchestration

Sales, Consulting

& Marketing

R&D


Chemicals IVN Focus Partner Solution Areas

Suppliers & Partners

Customers & Channels

Develop Plan Source Make Deliver Sell & Serve

Research & Development R&D Management

Product Development

Supplier Collaboration

Strategic Sourcing Procure to Pay

Supply Chain Planning & Execution Supply & Demand Planning Distribution & Transportation

Order Fulfillment Inventory Management

Manufacturing Planning & Exec.Manufacturing Operations

Enterprise Asset Management Sales & Marketing

Sales & Operations Planning Opportunity Management

Order To CashInquiry to Contract

Customer Service Complaint Management

Product Information Mgmt.

Quality Management & Compliance Quality Management

Compliance


Compliance

Enterprise Management & Support Analytics Financials

Human Capital Management Corporate Services Operations Support

Project ManagementIP Management

Supply chain designInventory optimization

Emissions ManagementREACH

Detailed SchedulingAdvanced process control/historianManufacturing Execution SystemsReliability-centered maintenance optimizationEAM ReportingReal-time Performance Mgmt.

Price & Margin Management


Chemicals Solution Map 2007

Suppliers & Partners Customers & Channels



Product Development

Supplier Collaboration Strategic Sourcing

Procure to Pay



Manufacturing Planning & Execution Manufacturing Operations



Inquiry to Contract

Order to Cash


Product Information Management


Compliance


Compliance




SAP Price & Margin Management

Low and negative margin transactions resulting from uncontrolled discounting

and operational leakage… WHY??

Large variation in net margin for customers with similar volumes/revenues...Why?


Business Issue lead to Vendavo Partnership

2006 2006/07Price & Margin – Key Business Issue

Reseller agreement with Vendavo

Key Innovative Offering on BPP

Focus on ChemicalsPrice Mgmt becoming a key topicFirst contactsestablished

Competitive analysisPBNW agreementSolution validationClosure of reseller contractField EnablementFirst customer on SAP paperAdditional industries (e.g.Hightech, …)

Global Sales CollateralAlign Solution RoadmapIn-house Demo ExecutionLeveraging BPP to createEnd-to-End PricingOfferingPrimary focus on 5 industries

2004 20062005


Close gaps in end-to-end quote-to-cash process

11

55

66

88

99

1010

Sales Representative



22

33

44

Sales Manager

Product Line Manager

MarketingAnalyst

MarketingManager


Sales Executive

CRM: Review existing contracts and sales targets

PMM: Discuss needs with customers, modify quote

PMM: Receive notification, check compliance, and approve quote

PMM: Analyze customer quote profitability

PMM: Create multiple proposals, review trade-offs, submit quote for approval

PMM: Review profitability, define customer segments

CRM: Review and approve Sales Campaigns

SAP ERPVendavo

CRM: Create Sales Campaigns

PMM: Receive notification, review conditions, approve

SAP CRMSAP PMM

CustomerService77

CRM: Book Customer Orders with new conditions

SAP PMM-CRM High Level Integrated Business Process

11

55

66

88

99

1010

Sales RepresentativeSales Representative

Sales RepresentativeSales Representative


22

33

44

Sales Manager

Product Line Manager

MarketingAnalyst

MarketingManager


Sales Executive

CRM: Review existing contracts and sales targets

PMM: Discuss needs with customers, modify quote

PMM: Receive notification, check compliance, and approve quote

PMM: Analyze customer quote profitability

PMM: Create multiple proposals, review trade-offs, submit quote for approval

PMM: Review profitability, define customer segments

CRM: Review and approve Sales Campaigns

SAP ERPVendavo

CRM: Create Sales Campaigns

PMM: Receive notification, review conditions, approve

SAP CRMSAP PMM

CustomerService77

CRM: Book Customer Orders with new conditions

SAP PMM-CRM High Level Integrated Business Process

SAP PMM is designed to close end-to-end process gaps:

Automatic creation and/or updating appropriate pricing conditions records for:

– Customer specific pricing agreements and terms

– Newly set prices– Mass price updates– Etc.

Audit trail and SOX compliance benefitsEliminates manual data re-entry and resulting errors

Key to closing process gaps is deep object level integration with SAP SD component

Customer Service

Approvers

Gather customer’s requested prices

and termsAllowed?

Communicate response to

client

Explore alternative deal

scenarios

Client agrees?

Requires further review?

Review, evaluate and

approve

Issue sales orders/

shipments $Issue invoices

1NO

YES

NO YES

YES

NO

2 3

4

5 6

Sales

Finance

SAP Price and Margin Management

Customer ServiceCustomer Service

ApproversApprovers

Gather customer’s requested prices

and termsAllowed?

Communicate response to

client

Explore alternative deal

scenarios

Client agrees?

Requires further review?


approve


approve

Issue sales orders/

shipments

Issue sales orders/

shipments $Issue invoicesIssue invoices

1NO

YES

NO YES

YES

NO

2 3

4

5 6

SalesSales

FinanceFinance

SAP Price and Margin Management






Product Development


Procure to Pay






Inquiry to Contract

Order to Cash




Compliance


Compliance




Innovation Management by Linx-ASInnovation Management by Linx-AS

The strategic IP management solution that integrates seamlessly with the SAP landscape.The strategic IP management solution that integrates seamlessly with the SAP landscape.

www.intellectualpropertymanager.com

Guides legal business process for securing Intellectual Property rights & associated litigation.

Docket Management

IP Portfolio Management

Modeling & Analytics

R&D and Marketing workspace for valuating IP & managing data and documentation.

Executive reporting to monitor efficacy of IP strategy & uncover competitive insight.






Product Development


Procure to Pay






Inquiry to Contract

Order to Cash




Compliance


Compliance




Supply Networks

SynthesisFillingFilling Formulation

Affiliate or Customer

Market / Storage

Transport Transport Transport

InternalVendor

InternalVendor

InternalVendor

In House Production

External Procurement

VendorVendorVendor

Planner Planner Planner Planner

planning of wholeproduction networkproduction of a.i.

production of finishedgoods after order entry

Packing

Active IngredientsFormulationPackaging

Drawing (w/o callouts) by Bayer CropScience presented atSAP LOGISTICS AND SUPPLY CHAIN EXCELLENCE 2004






Product Development


Procure to Pay






Inquiry to Contract

Order to Cash




Compliance


Compliance




XMII Data and Event Services

Com

posi

te A

pplic

atio

ns

SAP Manufacturing Portfolio – Chemicals Industry

Level 2 :Automation/Connectivity Data HistorianDevice Integration Plant Data Collection Sub-System

mySAP Business Suite ERP (Netweaver, SCM, PLM, CRM)

Level 1 :Shop floor Process Control

RFIDSensors

EnvironmentalBldg Mgmt Sys

PLC / DCS /SCADA / analysers

WeighScales

InspectionEquip/Testers

Level 3MfgOpera-tions

Level 4 : EnterpriseProcess Material

Requirements Planning

Resource and Capacity Planning

Detailed Scheduling

Contract Manufacturing

RecipeManagement

Quality Engineering

Quality Control

QualityImprovementAudit Management

Product Safety Management

Industrial Hygiene and Safety

Waste Management

Product Compliance

Six Sigma

Energy Management

Performance Definition &

Measurements

Performance Improvement

XMII Intelligence ServicesEmissions

Management Alerting Performance Analysis

Production Exec. & Process

Management

Labor and Resource Management

Advanced Process Control

Production Data Collection

Production Dispatching

Process Control

Batch Management Document Management

Production Tracking & Genealogy

Costs Management & Accounting

Maintenance Planning

Maintenance Execution

Work Clearance Management

Technical Assets Management

RCMO

xEM

xMW

xMPO

PEM

Rapid Sigma

LIMSConnect

xRTA

VIP

Core MES Function No SAP focusSAP Manufacturing SAP/and Partner Solution






Product Development


Procure to Pay






Inquiry to Contract

Order to Cash




Compliance


Compliance




Governance Risk & Compliance

FinancialCompl.

ChemicalGRC

GlobalTradeCompl.

ReachComp.

Compliance Dashboards

SVT

SAP &

TECHNIDATA

building Solutions for Compliance Mgmt.

Process Controls

Risk Management


IVN Partners for Chemicals – 1/3

Partner Solution / Activity Status

Reseller

VIP = Reseller

Asset Hubtargeted for EBSA

SAP Price and Margin Management by Vendavo (SAP PMM)Set pricing strategy and objectivesSet optimal prices and policies for all segmentsAdminister and communicate price lists and booksNegotiate prices and terms for direct and channel businessExecute order to cash accurately

SAP Solutions for ComplianceREACHEmissons Management (xEM)Services:

– EH&S Content– Phrase Translation– Document Creation– OCC certification

SAP Visual Information for Production by NRX (SAP VIP) Solves the “usability” issue by employing role-based, simplified functionalityActs as single point of truth for key asset informationUnifies critical functions and information into one workspaceIntegration of 3rd party information through SAP xMII to provide a holistic maintenance solution

= degree of completion of Reseller, Endorsed Business Solution agreement or PBNW certification


IVN Partners for Chemicals – 2/3

Partner Solution / Activity Status

PBNW,available,targeted for EBSA




Manufacturing Workbench (xMW)Advanced planning and scheduling Add-On solution for SAP R/3 (mySAP ERP) and mySAP SCM. Individualized configuration for improved visualization, usability and data integration

Manufacturing Process Optimization (xMPO)Advanced process control (APC) technology that controls and optimizes the operational production process using predictive performance metricsAdvanced decision making comparing future scenarios of production, economic and other data, integration with SAP ERP financial data, leveraging SAP xMIIProven benefits with implementation at NOVA Chemicals

Reliability Centered Maintenance & Optimization (RCMO)Provides the framework to define maintenance strategies based upon RCM and Failure Modes and Effects Analysis (FMEA) principlesIntegrates the recommendations from an RCM analysis into SAP maintenance plans in SAP ERP (PM)Certified xApp

Enterprise Inventory Optimization (EIO)Multi-echelon inventory optimization (SmartOps MIPO)Advanced demand and supply profiling leverages SAP BW/BI and mySAP SCMTotal supply chain view and operational synchronizationCertified xApp



IVN Partners for Chemicals - 3/3

Partner Solution / Activity / Status Status

Real-Time Accounting (RTA)Real-time accounting on a process unit, area, and plant basis of the entire manufacturing floorGraphical feedback of financial and strategic performance in the correct operational context

PBNW,development in progress, tareted for EBSA

PBNW,development in progress

Joint solution under discussion

Available as xApp built on xMII

PBNW,available

LIMS Connect (xLC)Enterprise wide view of data from different LIMS Comparison of laboratory analysis from different labs using different LIMS

Intellectual Property Manager (IPM)Docking Management - Guides legal business process for securing Intellectual Property rights & associated litigationIP Portfolio management - R&D and Marketing workspace for valuating IP & managing data and documentation.Modeling and Analytics - Executive reporting to monitor efficacy of IP strategy

Inventory Reconciliation, Real-Time Performance ManagementData Reconciliation for inventory and energy balancesReal-time Reports of inventory, energy balances and unit balances

Logic Net Plus, Logic ChainManufacturing and Distribution network rationalizationGlobal supply chain design & analysis, strategic decision supportProduction sourcing and asset planning



Business Partner

Business Partner

R&D Collaboration

R&D Collaboration

Logistic Collaboration

Logistic Collaboration

Customer Collaboration

Contract Manufacturing

Platforms, Services and Tools are needed to support Industry Collaboration

SAPNetWeaver

Port.Masters

Innovators

Suppliers

Customers

Commodities

Specialists

SAPNetWeaver

Logistical Control System

Process Control System

Process Control System

Vertical Integration


The Chemical IVN: Building the Foundation for …

… the Business Process Platform of Choice for Chemicals

SAP NetWeaverEnterprise

ServiceRepository

ProcessComponents

ChemicalsMessagingStandards

Portal Devices Office RFIDRendering

xApps for Chemicals by SAP and IVN ISVs & SIs

Sub-sidiary

Bus.partner

ISVApplic-ations

SAP

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How IVNs are Linked with Other SAP Customer GroupsProviding input to steer IVN collaboration and coinnovation focus

Input for & validation of IVN focus areas, innovation & partner opportunities

Composite& integration

needs& solution validation

SAP enterprise service requirements for composites /integration scenarios

Input forwhitespace

planning

Business Process ExpertCommunity

Business Process Needs& Best Practices

Industry Advisory CouncilsIndustry Trends & Needs

IVN CustomersInnovation Needs

SAP User GroupsRequirements for

SAP Portfolio

Enterprise Services CommunityDefinition Groups

Enterprise Service Specification & Validation


IVN is a Major Element of SAP’s ESA Strategy

SAP NetWeaverEnterprise

ServiceRepository

ProcessComponents

SAPOtherBusinesses

OtherApps

OtherPlatforms

SAP Partner CustomxApps xAppsxApps

Portal Devices Office RFIDRendering

Industry AdvisoryCouncils

Industry ValueNetworks

SAP Development &ESA Adoption Program

Enterprise ServiceCommunity

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Thanks for your attention –Any questions?

Franz HeroVP, IBU DirectorIndustry Business Unit Chemicals

SAP AGDietmar-Hopp-Allee 1669190 Walldorf

T +49 (62 27) 7 – 60039E [email protected]

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