web 2.0: creating opportunities for sap and your customers...page 3 executive summary: web 2.0 and...
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Web 2.0: Creating Opportunities forSAP and Your Customers
May 2008
Page 2
A. Executive SummaryB. From Web 1.0 to Web 2.0C. SAP Harnessing Web 2.0
1. Communities of Innovation2. SAP Technologies
D. Value Proposition for Your Customers – And You
Agenda
Page 3
Executive Summary: Web 2.0 and SAP
Web 2.0 Primer
Web 2.0 is a set of economic, social, and technological models currently driving the creation of anew online paradigm
Technology models: New technologies like Mashups and blogs to distribute means ofproduction and enable multi-way communicationSocial models: Re-defines business processes and virtual community interactions (Eg. SocialNetworks like Facebook)Economic models: New economic models like advertising aftermarkets and pay for contentsites (Eg. Google and Apple iTunes)
SAP Harnessing Web 2.0
Applying Web 2.0 concepts to enterprises is leading to an emerging “Enterprise 2.0”;SAP is harnessing Web 2.0 technologies in two ways
Communities: SAP supports an expanding SAP ecosystem through communities of innovationwhere customers collaborate to improve ROI and accelerate innovationProducts and Solutions: SAP has harnessed Web 2.0 concepts and technologies to createproducts that enable customers to address their core challenges and respond to Web 2.0 trends.
Value Proposition for your Customers – and You
Value for your Customers: accelerate innovation, reduce costs and enhance ROIValue for SAP Field Sales: demand generation, deal execution and customer satisfaction
Page 4
A. Executive SummaryB. From Web 1.0 to Web 2.0C. SAP Harnessing Web 2.0
1. Communities of Innovation2. SAP Technologies
D. Value Proposition for Your Customers – And You
Agenda
Page 5
Web 1.0One-way Communication from Content Owner
One-way communication
Pretty postcards
“Brochure-ware”
Internet as just another channel
What was it?
People want human interaction
The Internet is NOT just another channel forbroadcasting
Relatively expensive to produce content
No real individual level monetization of web
Why did it die?
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Drivers of Web 2.0
Opportunity Means
141187
233
286
338
386
433
0
50
100
150
200
250
300
350
400
450
500
2004 2005 2006 2007 2008 2009 2010
Worldwide Broadband Adoption(Millions of Households)
Sources: Morgan Stanley, Deloitte Research, IBM, Bear Stearns, Nielsen, Netflix, ScreenDigest, Borsch, Future of Media, Google, eMarketer Research, SAP VE Analysis
Web 2.0 developed because of a confluence of consumer-led factors.
Motive
Over 1 billion people now online
Broadband connections nowdominate
> 50% of US Internet connections
Cost of production has decreased
“Excite (circa ‘96) took $3M to getfrom idea to launch.JotSpot, acquired by Google(circa ‘06) took $100,000.” – JoeKraus, Founder
Online advertising aftermarket &pre-built eCommerce solutionsenable individuals to quickly geteconomic value
$2,205
$989
$483
$236$115 $56 $2
$-
$500
$1,000
$1,500
$2,000
$2,500
2005 2006 2007 2008 2009 2010 2015
Costs to Store 10,000 hrs ofVideo Content ($USD)
0
500
1000
1500
2000
2500
3000
3500
2006 2007 2008 2009 2010
Growth of New Ad Models($M Revenues)
User Generated Content Ads
Behaviorally Targeted Ads
Social Network Ads
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Web 2.0Multi-way Communication
“Web 2.0 is a set of economic, social, andtechnology trends that collectively formthe basis for the next generation of theInternet ...”
– Tim O’Reilly
What is it?
Technology Models: To distribute means ofproduction and enable multi-waycommunication (Eg. Mashups and RSS)
Social Models: Re-defines businessprocesses and interactions (Eg. Wikis, SocialNetworks)
Economic Models: New business modelsthat in turn generate demand fortechnology(Eg. Pay for content Apple model)
What does it include?
Page 8
1. Technology Models
New technologies distribute the means of production & enable new social interactions.
Blogging
Simple online word processing technology enablinganyone to be an author.A blog (an abridgment of the term web log) is awebsite, with regular postings of text and multi-mediacontent.
Video Sharing Advances in streaming technology enabling sharing ofvideo content
SyndicationRSS (Really Simple Syndication) is a family of Web feedformats used to publish frequently updated content suchas blog entries, news headlines, and podcasts
MashupsWeb application that combines data from more than onesource into a single integrated toolExample: Location data from Google Maps + real-estatedata from Craigslist = unique real estate mapping service
Tagging Multi-attribute tagging technology enabling people to jointlycatalog information
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2. Social Models
New social models reconfigure existing business models and processes.
ProfessionalNetworks
Virtual communities that enable business professionals tonetwork and collaborate by title, industry and businessinterests so that they can discuss interests, stay informedand share knowledge
Social NetworksWeb-based services that provide a collection of ways forusers with common interests to interact, such as chat,messaging, email, video, voice chat, file sharing,blogging, discussion groups
WikisCollection of web pages designed to enable anyone whoaccesses it to contribute or modify content, using asimplified markup language. Group content editingreconfigures team collaboration processes
ForumsWeb application for holding discussions and posting user-generated content. Forums enable group discussion andreconfigure support processes
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3. Economic Models
New economic models generate demand for additional technology.
Online AdvertisingOnline advertising enables a search after-market andcreates demand for new ad managementtechnologies
Pay for Content Profitable low-cost content distribution createsdemand for new media creation technologies
Content AggregationValue shifting from content creation to contentaggregation creating demand for new relatedtechnologies like group filtering
Monetizing thePlatform
Adding APIs to core infrastructure enables newbusiness models and creates new technology mash-up opportunities
Online-OfflineHybrids
Merging online & offline processes to enable efficientmass customization of traditional consumer products
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PredictionMarkets
Model: ForumsOppty: Predict book salesby analyzing online userbehavior and dataChallenges: technologyintegration, responding toemerging markets fast
CorporateBlogging
Model: BloggingOppty: Give employees avoice to sense needs, andharvest good ideasChallenges: loss ofcontrol, informationsecurity, validity ofinformation
TeamCollaboration
Model: WikisOppty: Transform internalcollaboration for > 2000usersChallenges: onlinevandalism, informationsecurity, groupthink
From Web 2.0 to Enterprise 2.0
The application of Web 2.0 modelswithin the enterprise to tackle corebusiness problems.
What is it?
Technological Challenges: IntegratingWeb 2.0 technologies with legacyenterprise systems, enabling secureconnections outside the enterprise
Organizational Challenges: Definingroles, rules, & responsibilities aroundthe access, dissemination, and validityof information
Strategic Challenges: Aligning IPcreated by networks and partnershipswith existing legal & contractualframeworks
What is different?
Applying Web 2.0 models to the enterprise leads to both opportunities and challenges.
Page 12
Agenda
A. Executive SummaryB. From Web 1.0 to Web 2.0C. SAP Harnessing Web 2.0
1. Communities of Innovation2. SAP Technologies
D. Value Proposition for Your Customers – And You
Page 13
The SAP Ecosystem Features Web 2.0 BasedMulti-Way Communication
Industry-Focused Excellence• Comprehensive , integrated, & industry –
specific solutions with partners
2
3
1
Community-Powered Results• Role- and task-based community
engagement model that quickly connectsyou with the resources you need
Orchestrated Co-innovationIntegrated approach with Partners,customers and individualsAddress entire solution lifecycle fromdevelopment to deployment
Accelerate Innovation
Enhance Returnon Investment
SAP Solutions& Services
SAP Ecosystem
Deliver Breakthrough Results…
Reduce integration costswith pre-certified solutions
Decrease integration riskwith standards-baseddeployments
Cut costs of acquiringknowledge
Innovate ‘at the edge’ of the company
Trusted & relevant partner solutions & services
24x7 access to relevant knowledge & expertise
Rapidly find & deploy diverse resources
…Unique Ecosystem Approach
Web 2.0 Embodied in Community - Powered Collaboration and Orchestrated Co-Innovation
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Community Website Wikis, Forums, Blogs, Events
Web 2.0 Manifested in SAP Communities
Web 2.0 community tools improve communication, collaboration, and co-innovation
Ease of Access to Trusted Sources24x7 access to sources of problem resolutionTrusted information from subject matter experts
Cost SavingsReduce costs of support and helpTrain newbies – highly scalable self-serve model
Adoption and EvangelismFaster product and solution adoption and implementationEmpower hundreds of thousands of evangelistsHigher success and satisfaction ratesUsers share best practices and successesOffline events deepen the connection
SAP Developer Network and Business ProcessExpert Communities
Built on the NetWeaver Collaborative Portal
Largest single implementation
Enabling architecture includes web 2.0 tech partners(Jive, Atlassian Confluence and Community Servers)to enable webpages, blogs, forums and wikis
wikis
forums
blogs
events
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Growing Communities Deliver Support Co-Innovation Thru Advice and Participation
SAP Community Momentum is Building
All aspects of the SAP community are growing rapidly.
ESC Members
2007
350+
IVN Members
2005 2007
125+
BPX Members
2006 2007
350,000+
Community Size
2003 2007
1,200,000+
35 Community Definition Groups, 7 CommunityAdvisory Groups in Enterprise Services Community(ESC)
>50% of new Enterprise Services Bundles thru ESCprocess
15 Industry Value Networks of customers andpartners co-innovate, delivering preintergratedsolutions
197 Forums; 5500+ Posts a day
Four replies to every query
Queries answered on avg. 17 min
Total Number of Messages (lifetime /ever): 3,387,524
16 BPX Industry Forums & CRM, GRC, CSRforums
Launched SDN Subscriptions
Page 16
SAP Leveraging Web 2.0 Technologies inSolutions
SAP harnesses Web 2.0 technologies in a variety of ways
Embedding Web 2.0 Technologies Creating Native Web 2.0 Applications Enabling Enterprise Mashups
Example: CRM 2007, BusinessByDesign, …
Flexible Web 2.0 interface enablesfaster deployment and adoption.
Changes perception about SAPusability
Accelerates adoption by users todrive faster ROI
More tightly orchestratedcollaboration
Example: WidgetsLight-weight desktop or online apps
SAP or 3rd parties produced
Mash-up multiple SAP or externaldata sources
Based on Web 2.0 standards
Creates pull for additional SAP userlicenses
17,000+ downloads to date
Example: Master Data MashupMash-up master enterprise data withGoogle Maps for intuitive displays.
Enables new web-services basedapplications that consume enterpriseand web content
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Agenda
A. Executive SummaryB. From Web 1.0 to Web 2.0C. SAP Harnessing Web 2.0
1. Communities of Innovation2. SAP Technologies
D. Value Proposition for Your Customers – And You
Page 18
AccleratingInnovation
Resco empowered new developers to learn SAP NetWeaver Portal inonly two weeks
Siteco received complete, accurate responses to technical questions,often in 1-2 days
Reducing Costs
Stadt Dormund received solutions to more than 50% of IT challengesthrough ongoing SDN participation
Siemens enabled its developers to resolve technical problems 50%faster than through other channels
US Department of Defense saved time and reduced costs by trainingnearly 50 developers online
Gazum solved technical problems 50% faster than with otherresources by leveraging the expertise of other developers on SDN
Improving ROI
Wipro reduced customer application replacement costs 25% byhosting a RexApp on the BPX Community
Colgate-Palmolive eliminated hours of tedious work by using SAPlinkto share ABAP™ code, created in the SDN Community
Communities Deliver Measurable Customer Value
SAP communities accelerate innovation, reduce costs and enhance return on investment
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Fiel
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Call to Action
SDN to resolve implementation and operational issuesBPX for business process best practicesESC for eSOA and services definitionExplore invitations for your customers to IVN and Standards communities
Learn more at www.sap.com/ecosystem/communities
Visit SDN/BPX to see what your customers are talking about atwww.sdn.sap.comBecome active in popular communities relevant to you to refresh your skillsLearn more on web 2.0 : read cluetrain manifesto, net gain and oreilly.com
Reach out to the SAP Community Management team – we want to help youdrive revenueTell us how the SAP communities helped you close dealsBring your customers to Tech Ed 2008 for greater immersionPresent web 2.0 – based products to your customers (e.g. .widgets)
EncourageCustomers toJoin SAPCommunities
Engage in Web2.0
Join theConversation