the future of erp by bertrand andries

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.


Our customers produce more than 86% of the world’s athletic footwear.


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)


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


2012 STRATEGY

APPLICATIONS ANALYTICS MOBILE TECHNOLOGY

& DATABASE CLOUD

FIVE MARKETS

In Memory (HANA)

SERVICES


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



What is Big Data?

Volume, Variety and Velocity

Source: TDWI Big Data Survey


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


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


real-time

OR


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


on granular data

Big data, many

data types

Fast response-

time, interactivity

No data preparation, no

pre-aggregates, no tuning


real-time


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


(Re-) Unification of Transactional Processing and Analytics

https://openhpi.de/

https://openhpi.de/


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


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


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


SAP HANA Ideal platform for real-time business

Real-time

Analytics

Real-time

Applications

Real-time

Platform


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


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


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


There Are More Mobile Phones

Than Toothbrushes (5B vs 2.2B)

© 2011 SAP AG. All rights reserved. /


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




First 13 Quarters Cumulative Global Android & iPhone Shipments

Android iPhone



Growth of Number of Devices vs. Number of People on Earth



India Internet Traffic by type, Desktop vs. Mobile, 2008 – 2012

Desktop Internet

Mobile Internet



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”


SAP Mobility Platform

Mobile Applications

Mobile Services

SAP’s Coverage: SAP Mobility Enterprise Solutions

1

2

3


Why a platform?


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



The internet of things

REQUIRES

2012 And Beyond

APPLICATIONS ANALYTICS MOBILE TECHNOLOGY

& DATABASE CLOUD

HANA

SERVICES


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