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SAP Business Suite INNOVATION STRATEGY AND ROAD MAP

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SAP Business Suite Innovation Strategy and Road Map

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Legal Disclaimer

The information in this document is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. Except for your obligation to protect confidential information, this document is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related document, or to develop or release any functionality mentioned therein. This document, or any related document and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. 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. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP’s intentional or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.


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Table of Contents

The Future of Enterprise Software 4 Key Trends 4 The SAP Way 4

More Innovation 5 Evolution of SAP Business Suite 6 Business Process Evolution 6 User Experience 7 TCO Improvements 9

Breakthrough Innovations for SAP Business Suite 10 Business Process Breakthrough Innovation 10 SAP HANA Innovation 11 Mobile Innovation 14 Cloud Innovation 15

Less Disruption 16 The Non-‐Disruptive Paradigm 16 Non-‐Disruptive Shipment Models 16 Side by Side 17 Rapid-‐Deployment Solutions 17

Long-Term Predictability 18 Customer Benefits 19


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THE FUTURE OF ENTERPRISE SOFTWARE

Key Trends

Market Trends

Data volumes for enterprise applications are doubling every 18 months. The masses of structured and unstructured data are a huge challenge and an opportunity at the same time for the enterprise customer. Leveraging these data volumes effectively for strategic and operational decision making with immediate impact on execution enables our customers to adopt game-changing business processes/models.

Technology Trends

Technologies such as in-memory computing, mobile, and cloud computing offer customers the ability to react to new business needs – adopting these technologies as point solutions can lead to challenges in TCO and integration.

SAP Business Suite Customers

Our customers have strategically invested in SAP Business Suite software and expect SAP to protect and add value to this investment. Big upgrades are disruptive to our customers’ business and make it difficult to take advantage of innovations in new big software releases.

Enterprise Software Industry

The traditional business model of the enterprise software industry relies on the implementation of major new releases of software to consume breakthrough innovation. New major releases are more likely to be disruptive to the business, which reduces the speed of adoption. They are also expensive, which drives up the total cost of ownership. Major releases are also time-consuming, reducing the rate at which innovation becomes available to the business. While on-demand deployment of point solutions addresses those problems to various degrees, we believe that on-premise deployment remains the standard model for the foreseeable future. As a consequence, accelerated, non-disruptive delivery of evolutionary and breakthrough innovation is becoming a key success factor in the enterprise software industry.

The SAP Way

We have defined four key elements for the SAP Business Suite innovation strategy:

- Evolutionary innovation: Customers need to be able to consume innovation quickly, easily, and continuously, not only in the cycles of big new releases – this gradual evolution of enterprise software spans from functional enhancements to TCO and new user experiences.

- Breakthrough innovation: Customers need to be able to leverage breakthrough innovation to adopt new business practices and processes as quickly and smoothly as possible.

- Delivery without disruption: Customers want to avoid cost, time, and skill hurdles, so they can adopt innovation easier and faster.

- Long-term predictability: Customers want to make the most out of their investments and expect a clear perspective for their strategic software investments.

These innovation principles ensure that SAP Business Suite remains the future-proof choice for best-run businesses.


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MORE INNOVATION

“Two years ago we finally were sure we have the right set of ideas how we can move forward without disrupting our customers’ business but being as radical and modern as possible”

Hasso Plattner, SAP TechEd 2011 Las Vegas

SAP guides the innovation strategy for SAP Business Suite with a few simple imperatives focusing on customer value: We deliver relevant evolutionary and breakthrough technology and business innovations along a clear road map without big and disruptive upgrades that impact the entire enterprise. This unique value for our customers motivates us to accelerate the pace of non-disruptive innovation and ship relevant evolutionary and breakthrough innovation on a continuous schedule including mobile, in-memory, and cloud computing.

The road map of SAP Business Suite combines two tracks: Evolution of the existing functionality as well as using new technology (SAP HANA, mobile, cloud) for breakthrough innovation in existing or net new functionality.

Evolutionary Innovation

o Business process evolution (customer-driven improvements and incremental enhancements)

o New user experiences and user interface improvements – including rich client technology

o Reduction of complexity and new deployment options to better manage TCO

Breakthrough Innovation

o Business-process breakthrough innovation o SAP HANA innovation o Mobile innovation o Cloud innovation

The innovation road map illustrates how SAP plans to further invest in the current SAP Business Suite software and at the same time integrate the business value from new technologies in a non-disruptive manner. SAP Rapid Deployment solutions make consumption of innovation significantly faster, easier and more predictable for our customers – not just initially, but along a continuous growth path.

For SAP customers this means that they can build on their current investment to run the future of their business on SAP Business Suite.

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This graphic and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice


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EVOLUTION OF SAP BUSINESS SUITE

SAP continuously increases the value of SAP Business Suite with evolutionary and breakthrough innovation. Innovations will be released on a quarterly schedule with the least disruptive, most feasible deployment option. These non-disruptive deployment options include support notes, support packages, enhancement packages, or add-ons.

Therefore customers do not need to go through expensive upgrades and can consume innovations easier and earlier. SAP Rapid Deployment solutions for evolutionary innovations will be available early to enable easy, fast, and predictable consumption.

The evolution of SAP Business Suite focuses on continuous improvements and innovations, total cost of ownership (TCO), and user experience.

Business Process Evolution

Evolutionary innovation includes the incremental improvements of the existing functionality in SAP Business Suite. The main focus of continuous innovation is: Customer connection, line of business and industry coverage, and legal requirements.

Customer Connection

Customer connection is the structured process to drive incremental enhancements of the SAP products and solutions proposed and prioritized by customers along focus topics defined in collaboration with SAP user groups. This process enables customers to directly influence software improvements within a clearly structured process.

Customer connection focus topics are started as projects every quarter. Customer-requested improvements are prioritized, developed, and deployed along clearly defined timelines. The customer-connection process is transparent to user groups, focuses on quick results, and delivers the innovation in easy-to-adopt support notes and support packages.

Line of Business and Industry Coverage

SAP will continue to increase the value of SAP Business Suite for specific lines of business and industries by enabling new or changing business practices. This evolution includes process and functional innovations, modified or new user interfaces, additional analytical capabilities, or mobile enablement.

Legal Requirements

Changing legal requirements will also be reflected in our products and delivered to customers. A current example is the adoption of the latest requirements of the International Financial Reporting Standards (IFRS).

Figure 1: Customer Connection Topic Road Map (Illustrative Example) This graphic and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice


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User Experience

The Needs of Professional and Casual Users

User experience (UX) continues to be an important topic for our customers, because this is a key enabler of productivity and satisfaction for knowledge workers. The SAP Business Suite strategy for UX distinguishes two user groups: the professional users and the casual users. The professional user works daily with SAP applications and has a high level of SAP proficiency. This user group requires a very efficient way to work with applications, including keyboard shortcuts and other accelerators. The casual user either works only occasionally with SAP applications or with a very broad range of applications. This user group seeks an interface that is very intuitive and allows them to work very effectively without a lot of training. Typical scenarios are manager and employee services.

We plan to accommodate the different needs of professional and casual users with specific user interface (UI) technologies:

User Experience for the Professional User

The best practice workbench and side panels will enable professional users to become markedly more efficient:

� Contextual information and extensibility for existing transactions via side panel

� Decision-making information pushed to the end user by the best practice workbench.

� Process improvements and higher efficiency by a user-centric and task-driven approach that blends business transactions with analytics and other critical capabilities

� Entry pages for easy information overview

This innovation is accessible for many customers, because it requires only SAP NetWeaver 7.0.

User Experience for the Casual User

Casual users will be attracted by a state-of-the-art User Experience based on Open Web standard support:

� Non-proprietary user interfaces, based on an open UI technology standard (HTML5, OData)

� Multi-device support, so UIs will run on any device

� Open environment for customer and partner development

First results are planned to be available in SAP ERP HCM and Source-to-Pay.

Lab preview Lab preview

Lab preview Lab preview


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Social Media

SAP plans to add social media capabilities to SAP Business Suite to enable task-based employee cooperation and to connect the corporation to public social media sites.

Social media will bring the next level of virtual cooperation beyond e-mail for defined teams. For example, sales, business development, and pre-sales teams can collaborate quickly and directly while working on a specific sales opportunity, or the account team and technical experts can come together to handle customer escalations.

The connection of the enterprise to the vast amount of information and communication on public social networks will add critical value to sales, procurement, HR, and other departments. It will enable the direct connection of the full recruiting process with the social media sites to announce an opening or to identify the right candidates. For sales, social networks can help to announce and manage information about products and services to relevant groups.

3D Visualization

SAP plans to introduce leading 3D visualization capabilities to SAP Business Suite to unify product designs and business data. This will increase the ease and efficiency of creating, maintaining, and understanding product documentation for every user, in every functional area, who is engaged in the product life cycle.


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TCO Improvements

SAP Business Suite software focuses on helping customers better manage total cost of ownership (TCO) and total cost of implementation (TCI) by reducing complexity of applications and the overall system landscape. Additionally, SAP plans to take specific measures to make implementation and operations less labor-intensive and to reduce cost incurred by business downtime.

We plan to reduce application complexity by providing:

• Option for deployment on SAP ERP, example: SRM e-procurement (‘shopping card functionality’)

• Deployment as add-ons, example: SAP APO-PPDS on SAP ERP

• Costs reduction for master data management by offering SAP Master Data Governance as part of SAP ERP, addressing master data governance and replication for most important ERP business objects (material, supplier, customer, financial master data). SAP Master Data Governance is planned to be deployed as an integral part of an ERP system or as master data hub (= dedicated ERP for master data management)

We plan to reduce landscape complexity by providing:

• Gateway for mobile access deployed stand-alone or as add-on — and possibly as an integral part of the technology stack in future

• SAP NetWeaver hubs optionally for SAP Business Suite applications with:

o Portal roles offered alternatively via NetWeaver Business Client o Alternatives offered for SAP NetWeaver Process Integration (SAP NetWeaver PI) usage, where

applicable, such as bank communication management from SAP ERP without SAP NetWeaver PI o Simplified reporting and analytics (Insight to action) as part of the application

• SAP NetWeaver 7.3x based on Java 6 planned as the common basis for all hubs (raising the minimum level for SAP Business Suite/SAP NetWeaver hub interoperability to version 7.30)

• SAP NetWeaver PI moving from dual stack to Java-only

• SAP NetWeaver Composition Environment (SAP NetWeaver CE) and SAP NetWeaver Business Process Management (SAP NetWeaver BPM) deployed as part of a SAP NetWeaver PI or a portal system.

We plan to reduce labor costs and business downtime by providing:

• SAP Rapid Deployment solutions that enable fast time-to-value at predictable and low total cost of implementation— by bundling SAP software with pre-configuration, services (available through SAP consulting or partners) and enablement content

• Appropriate content for SAP Solution Manager that aims at reduction of cost of operations and effort for change management

• SAP NetWeaver Landscape Virtualization Management that allows virtualization of systems and deployment into public or private clouds to exploit hardware capacity and thereby reducing hardware costs — enabling our customers create system copies quickly for sandbox, test, or development systems by system copy automation, including post-copy configuration

• A standard procedure for near-zero downtime maintenance as part of the new software update manager to significantly reduce the business downtime for software maintenance (installation and upgrades)

• Test templates for dynamic test scripts, to minimize the efforts for regression tests after software maintenance


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BREAKTHROUGH INNOVATIONS FOR SAP BUSINESS SUITE

Business Process Breakthrough Innovation

Breakthrough Innovation for business processes within and beyond the borders of the enterprise aim at allowing our customers to adopt new or substantially changed business processes to differentiate their business. These innovations include new applications for specific lines of businesses or industries, the integration of subsidiaries and the integration of on-demand applications.

Line of Business and Industry Innovation

SAP plans to continue to innovate in enabling completely new or substantially enhanced business processes. These processes either reflect new or changed business practices in specific lines of business or industries. This innovation comes with deep integration in SAP Business Suite and leverages breakthrough technologies that makes these innovations now possible. Examples for these innovations are:

• SAP Trade Promotion Management High-performance application enabling large promotion planning on a more granular planning level (e.g., day level) with real-time update possibility. Lowers TCO by providing standard tools as well as optional alternative user interface (Excel) for common use cases.

• SAP Demand Signal Repository Application providing more accurate demand forecasts and better management reporting on lower inventory levels and thus helps Consumer Products companies a) improve on-shelf availability b) increase control over new product launch c) increase promotion and price effectiveness and d) do better sales force targeting.

• Customer Analytics Highly integrated data (ERP, CRM, external) for deep insight across business with customer, thus enabling data-driven proposals for actions with high-success probability by predictive methods. High-performance and real-time reporting with highly interactive data visualization and mobile access (iPhone, iPad).

• Instant Compliance Fraud detection for insurance industry, banking, and public sector. More granular detection leveraging predictive analytics, easy and low-cost simulations based on real-time data, improved alignment among line of business and fraud detection department.

These innovations are delivered side by side as well as stand alone products.

Subsidiary Integration

We are planning to support different options to manage subsidiaries with on-demand and on-premise integration scenarios. On-premise subsidiary integration with the capability to integrate with on-demand-based systems are available and continue to be extended and made available with SAP Business-All-in-One and SAP Business One. On-demand based subsidiary integration is planned to be offered with SAP Business ByDesign.

On-Demand Integration

SAP Business Suite is planned to be easily extendable with on-demand offerings for specific business process requirements. SAP plans to integrate on-demand solutions seamlessly into SAP Business Suite by offering end-to-end process integration, master data integration, and integration of organizational data. This extensibility will make customers much more flexible in adapting new ways for conducting business processes.


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SAP HANA Innovation

SAP HANA is our flexible, game-changing, in-memory computing software. The SAP HANA platform combines in-memory software with hardware from leading SAP partners. This platform processes multiple types of data sources in real time at speeds and volumes that open new horizons for our customers.

SAP HANA is envisioned as an alternative database platform for SAP Business Suite, so customers have the choice to use the SAP HANA in-memory capabilities and performance to run SAP Business Suite applications. We expect that customers first adopt SAP HANA in side-by-side scenarios to take advantage of its capabilities before they start running the core applications of SAP Business Suite on SAP HANA. In a second stage we plan to offer SAP Business Suite directly on SAP HANA. This allows running the existing SAP Business Suite applications and new applications (including content, accelerators, and new SAP HANA apps) fully integrated on the same database. This deployment delivers an integrated high-performance system with optimized TCO.

SAP HANA Content

SAP HANA content delivers reports using data from existing SAP Business Suite software. Data is replicated into the SAP HANA appliance to support operational and strategic reporting in a side-by-side mode. SAP HANA reports analyze large data volumes with amazing speed down to the single transaction without pre-calculated aggregates. We plan to deliver report models as rapid-deployment solutions. Front ends from the SAP BusinessObjects portfolio can be used to display the data from the SAP HANA appliance. SAP HANA content examples include operational reporting for SAP ERP and pipeline analysis for SAP CRM. Figure 2 shows the currently planned set of focus topics for SAP HANA content.

SAP HANA Accelerators

“Lightweight accelerator” applications focus on the acceleration of existing functionality in SAP Business Suite by reading mass data from the database for SAP HANA. Accelerated analysis of mass data makes new functionality in well-defined areas feasible. Technically, SAP HANA runs as an additional database for SAP Business Suite. The data is replicated to SAP HANA and prepared for in-memory analysis. In general, the user interface remains unchanged to ensure a non-disruptive acceleration. Additionally, alternative user interfaces including mobile device are feasible.

This delivers substantial immediate business value through faster selections and aggregations. Examples are profitability analysis with CO-PA, customer segmentation, and material ledger. The currently planned innovations are being described in Figure 3.

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Figure 2: SAP HANA Content focus topics (illustrative) This graphic and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice

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Figure 3: Portfolio HANA Accelerators focus topics (illustrative) This graphic and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice


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New Native Applications for SAP HANA

In-memory technology powers the combination of analytical and transactional applications and enables new kinds of applications that could not be realized with established technologies. Today typical applications for planning purposes run separately; we intend to overcome this hurdle with SAP HANA. A major goal is to improve business processes by insight-driven decision-making based on embedded analytics and simulation capabilities within one application.

We are building new applications in a way that they leverage SAP HANA capabilities natively: They only run on database for SAP HANA and the design is optimized to take advantage of the SAP HANA capabilities. These applications typically have a strong analytical (e.g., customer analytics) or planning focus (e.g. SAP Trade Promotion Management) – since these are the areas where customers can benefit most from SAP HANA. We also combine the analytical focus with transactional capabilities to support insight-to-action in the best possible way.

Potential examples for those kinds of applications would include software that enables demand signal repository, smart meter analytics, incoming payment allocation, networked cost calculation, replenishment planning and calculation, customer analytics, and trade promotion management. Such software will be delivered optionally side by side or integrated into SAP Business Suite.

SAP NetWeaver Business Warehouse on the Database for SAP HANA

With SAP NetWeaver Business Warehouse (SAP NetWeaver BW) on the database for SAP HANA, customers use SAP HANA to accelerate their SAP NetWeaver BW. All Business Warehouse Accelerator reporting is planned to be delivered in high performance: faster structural changes, faster loading process, and faster integrated planning. Additionally we are planning that customers will not need a BW accelerator and can replace their existing traditional database under the SAP NetWeaver BW system.

The transition to SAP NetWeaver BW on HANA is envisioned to be non-disruptive and low-risk as it can be managed as a database migration or new side-by-side installation.

SAP Business Suite on the Database for SAP HANA

SAP plans to optimize SAP Business Suite to run on the database for SAP HANA centrally without a disruptive upgrade. Simply migrating applications from an existing database management system to the database for SAP HANA will not unleash the full potential of in-memory computing. Therefore SAP intends to partly refactor applications to take full advantage of the database features, such as fewer aggregates. Long-running business processes reading mass data are perfect candidates for investments. Changing the read access to views for the database for SAP HANA is the first step to increase the performance. Database tables containing redundant data, such as index tables and totals can be deactivated to further increase the performance. This may allow parallelizing the posting processes in addition, as no totals need to be written any longer.

Running SAP Business Suite and accelerators/content on this database simplifies the system landscape and helps customers better manage their TCO.


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NEW ANALYTICS BASED ON DATABASE FOR SAP HANA

Analytical applications make the database for SAP HANA shine because they deliver tremendous business value for our customers. Read access times can be improved by a factor of 100 to 1000. Therefore SAP intends to offer new analytical capabilities for data in SAP Business Suite based on this database. For new analytics the existing transactional applications remain unchanged. This means innovation without disruption.

The new analytics approach is planned to be based on the database for SAP HANA as the database server. In a first step, end-user productivity tools such as Microsoft Excel, SAP Crystal Reports, or SAP BusinessObjects Explorer are used to create reports and analytical insight. In the next step, rich client technologies such as HTML5 and JavaScript are planned to be used to support integrated analytics and integrated planning activities including insight-to-action and simulation applications.

The transactional SAP Business Suite applications continue to run on the SAP NetWeaver platform. For the new analytics approach a virtual data model is described by SQL views and optimized for reporting based on the existing SAP Business Suite data model. Such a virtual data model is intended to be very flexible, easily extendable, and adaptable by our customers and partner using plain SQL — for example, by renaming the views provided by SAP, by introducing additional restrictions or projections, or by combining views by joins.

The new analytics approach supports the two alternative deployment options to either run side by side with SAP Business Suite or to run directly on SAP Business Suite with SAP HANA. This gives our customers full freedom of choice and provides opportunities to manage complexity and TCO better.

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Mobile Innovation

When our customers define their strategy for extending their reach to the mobile world, they expect a consumer-grade mobile user experience that is based on a solid, scalable, and secure architecture. People will use different mobile devices and operating systems (e.g., Apple iOS, BlackBerry, Android) to connect to the company’s back-end processes and data. This access must be manageable, secure, and compliant with legal requirements and internal policies and rules – but still remain easy to consume for the individual employee, customer, or business partner.

Our mobile applications for SAP Business Suite enable people to do their job at any time with location-specific content, which improves the productivity of existing processes and provides the means to revolutionize processes and accelerate decision-making.

The mobile strategy for SAP Business Suite is based on four major cornerstones: mobile applications, architecture, software development kit (SDK), and SAP Store:

Mobile Applications

SAP’s road map for mobile applications (apps) is structured in three parts: employee productivity apps, specific high-value apps, and consumer apps:

• Employee productivity apps support a single-task, which reaches a large percentage of a company’s workforce, and thus achieves many users.

• Specific high-value apps target a specific role within the company for which they provide rich content. The app for customer briefing, for example, provides a comprehensive 360-degree view for sales representatives preparing for a specific customer visit. High-value apps may also focus on certain industries or important processes.

• Consumer apps are Business-to-Consumer apps that enable customers, partners, or citizens to interact with a company. They are targeted at great numbers of consumers.

Customer feedback indicates that the initial focus for lines of business should be on human capital management, sales, and service. In the second phase we plan to provide mobile apps that support other lines of business, such as manufacturing, supply chain, procurement, and finance, as well as industry-specific processes. We expect that the SAP mobile portfolio will be enriched by apps developed by partners and customers.

Architecture

The architecture serves as a foundation that is scalable and secure, and provides end-to-end support for users and devices. In the long-run we plan that our mobile architecture will go hand in hand with the further evolution of SAP Business Suite. SAP is working on the following architecture:

� A high-performance platform for on-premise or cloud deployment

� Stack simplification via integration of SAP NetWeaver Gateway and reverse proxy

� End-to-end support by integration of Afaria and SAP Solution Manager

� Unparalleled security for devices and data

Software Development Kit (SDK)

The SDK for SAP’s enterprise mobile apps is an extension to the native operating system (OS), such as Apple’s iOS, Android, and BlackBerry) SDKs. We plan to provide toolkits and libraries that increase development speed and developer productivity. The SDK is designed in a way that customers and partners can easily develop their own apps that integrate with SAP Business Suite. This fosters a broad offering of mobile apps. The SDK for mobile apps is planned to provide:

� Fast development infrastructure for enterprise apps

� HTML5-based apps as additional option for multi-OS support

� Shared development tools and infrastructure for partners and customers


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SAP Store

SAP Store is planned to be the central marketplace to discover and download apps from SAP and its partners. SAP also intends to use other marketplaces for providing apps to customers (mainly the stores of the operating system providers), but the central repository across all platforms will be SAP Store.

SAP Store will also have a customer-specific section called “company Store” where customers can maintain their app portfolio.

Cloud Innovation

We plan to give SAP Business Suite customers access to cloud-based solutions where it adds tangible business value: SAP Business Suite Virtualization, the integration of specific on-demand solutions for lines of business, and access to B2B networks.

SAP Business Suite Virtualization

SAP customers can gain a lot of value from deploying their systems in the cloud by SAP Business Suite virtualization, as this will ease the pain for new implementations, transitions, and also the operation of systems.

SAP plans to enable private and public cloud deployment of existing SAP business applications with SAP NetWeaver Landscape Virtualization Management software. This offering comes with a framework for automated system copy and clone, automatic capacity management, dialog instance provisioning, and other time-saving features SAP NetWeaver Landscape Virtualization Management will reduce the capital investment and operational costs of customers’ SAP systems and improve their business agility by simplifying and automating the effort required to provision, deploy, and manage their SAP systems and landscapes in virtualized and cloud infrastructures. These private and public clouds will be offered by SAP-certified cloud providers.

Additionally SAP plans to introduce a cloud management solution, which includes SAP applications and content to support the entire customer engagement life cycle. Customers then can experience the entire life cycle of SAP applications starting from demo all the way to being productive in the cloud. This will enable continuous innovations at the core without any disruptions. It will provide customers with new ways to streamline and improve processes in lines of business while decreasing the total cost of ownership for SAP solutions and decrease the time to value.

Line of Business On-Demand Solutions

Customers require the parallel use of on-demand solutions to satisfy specific needs of lines of business or to extend their business processes. Consequently business processes cross boundaries of on-premise, on-demand, and on-device applications. SAP plans to offer on-demand solutions initially for sales, human resources, and procurement with a tight process and data integration to SAP Business Suite, such as SAP Sales-OnDemand or SAP Talent Management. Therefore SAP plans to offer tools to orchestrate these processes end-to-end, from sales execution to order fulfillment. This is planned to include bi-directional data synchronization with net change and conflict resolution.

Business-to-Business Networks

For enhanced efficiency in the interaction of SAP Business Suite customers, with their customers and service providers, SAP plans to focus on building and enabling business networks.

Leveraging the intended acquisition of Crossgate, SAP is planning to augment SAP applications with capabilities for both P2P and B2B collaboration across companies. SAP plans to create one single SAP business network across lines of business and industries for efficient data exchange across the value chain.


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LESS DISRUPTION

The Non-Disruptive Paradigm

All innovation in SAP Business Suite is planned with the clear boundary condition to be non-disruptive for our customers. The non-disruptive paradigm fundamentally differentiates SAP’s approach to innovation and it is our firm belief that it adds critical value to our customers.

The cornerstones of SAP’s non-disruptive ambition are:

• Semantic stability of the data model

• Full integration with the current architecture in a non-disruptive way to avoid complex upgrade projects

• Limited requirements for end-user training

• Consumability in the context of existing applications

SAP plans to bring to life the delivery of non-disruptive innovation through adequate shipment models that will allow customers to selectively install/activate the required innovation or the deployment as side-by-side innovation. Additionally SAP plans to offer rapid-deployment solutions to ease the implementation.

Non-Disruptive Shipment Models

SAP plans to deliver evolutionary as well as breakthrough innovation in shipments that have as little negative impact on the customer’s operation and business as possible.

The planned shipment models include:

• For smaller improvements to existing applications, innovations will be delivered via notes or support packs (consolidation of notes).

• For larger innovations that are tightly integrated to the core applications, innovations will be delivered as in-advance shipments (of future enhancement packages).

• For innovations that are deeply interwoven with the core applications, innovations will be delivered as enhancement packages. These enhancement packages will also consolidate all innovations delivered as in-advance shipments and therefore will reduce application complexity.

This graphic and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice


17

Side by Side

SAP plans to deliver non-disruptive breakthrough innovation as side-by-side option that allows SAP customers to adopt these innovations with low effort and risk. This also allows deploying innovation in an independent cycle to other applications in the landscape.

Additionally, optional retrofits of these innovations to the core are planned wherever possible to better manage complexity and TCO.

Rapid-Deployment Solutions

SAP plans to offer these innovations as rapid-deployment Solutions to speed up implementation and lower risk. These solutions enable fast time to value at predictable low total cost of implementation, by bundling SAP software with pre-configuration, services (available through SAP consulting or partners) and enablement content:

• Customers can address their business requirements with ready-to-consume solutions at a fixed price.

• Each rapid-deployment solution delivers a best-practice scope and deployment methodology, thereby not only significantly reducing cost and time of deployment, but also risk of implementation and scope creep.

• Rapid-deployment solutions integrate with our customers’ existing SAP footprint and can be expanded based on the full underlying SAP product capabilities.

• As the new standard for solution consumption, coverage of rapid-deployment solutions is continuously being expanded to support our customer’s LoB and Industry solutions, as well as for the adoption of Business Analytics and Technologies.

OVERVIEW: NON-DISRUPTIVE SHIPMENT MODELS

Notes

• Delivery upon development • Development topics driven directly by and

prioritized together with user groups (customer connection)

• Smaller improvements and roundups of existing functionality

• Non-disruptive by explicit activation (customizing switches)

• Low-disruptive deployment by keeping changes to existing coding small

Support Packages

• Delivery on a quarterly basis • Development topics driven directly by and

prioritized together with user groups • Smaller improvements and round-ups of

existing functionality • Non-disruptive by explicit activation

(customizing switches)

In-Advance Shipments

• Delivery on a quarterly basis • Development topics driven by customer

requirements for specific lines of business or industries

• Larger innovations • Non-disruptive by explicit activation

(business functions) • Part of already-available enhancement

packages • Consolidation in upcoming enhancement

package

Enhancement Packages

• Consolidation of quarterly delivered functionality

• Large innovations deeply interwoven with multiple core applications

• Non-disruptive by explicit activation (business functions)

Side by Side

• Delivery on a quarterly basis • Innovations deployed in a side-by-side mode

next to the existing SAP Business Suite software

• Huge innovations such as database for SAP HANA and mobile portfolio

• Non-disruptive since deployed side by side


18

LONG-TERM PREDICTABILITY

For the core applications1 of SAP Business Suite 7, our innovation imperatives result in non-disruptive evolutionary and breakthrough innovation delivered with continuous innovation shipments that are consolidated in the next enhancement packages and new side-by-side applications.

As a consequence of the ability to deliver innovations that do not require disruptive upgrades to new software versions, SAP extends mainstream maintenance for SAP Business Suite core applications by 5 years through December 2020. This long-term predictability and planning security for our customers is unrivaled in the software industry. The longer maintenance also applies for SAP NetWeaver as the technological basis of the core application releases, and for all enhancement packages. For dependent applications we will decide on a case-by case basis whether these applications will follow the longer maintenance or whether SAP will ship new releases that can then be run together with the core application releases. The maintenance strategy for older releases of SAP Business Suite remains unchanged. The 2012 release strategy brochure will reflect the above decisions.

SAP’s innovation strategy and the resulting maintenance timelines will give our customers confidence in their SAP strategy and the necessary data points to evolve and expand their SAP landscape. This long-term predictability is unparalleled in the software industry and demonstrates SAP’s commitment to long-term, mutually beneficial customer partnerships.

SAP ERP 6.0

EHP1

EHP2

EHP3

EHP4

EHP5

EHP6

2010 2011 2012 2013 2014 2015 2016 2017 2018 2020 2008 2005 2009 2006 2007

SAP CRM 7.0 SAP SCM 7.0 SAP SRM 7.0

2019

SAP NetWeaver 7.x

SAP Business Suite 7 Core Applications

Longer Maintenance

until 2020

1 SAP Business Suite 7 includes the core applications (SAP ERP 6.0, SAP PLM 7.0, SAP CRM 7.0, SAP SCM 7.0, SAP SRM 7.0), supplementary applications, and industry applications.


19

CUSTOMER BENEFITS

The innovations strategy and road map for SAP Business Suite builds on the key strengths of SAP Business Suite software and addresses key customer needs for the future:

• Unmatched functional scope, global presence, and life-cycle management

• Breakthrough innovations consumable in the context of the products and solutions our customers are using today

• Unique non-disruptive delivery and predictable and fast consumption at low cost enabled by rapid-deployment solutions

• Industry-wide unrivaled long-term predictability for maintenance with evolutionary innovation of current functionality, improvements in UX and TCO

Breakthrough

Evolution

More Innovation Less Disruption Long-Term Predictability

December

2020 2015

www.sap.com

©2011 SAP AG. All rights reserved.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company.

Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company.

All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

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