What is SAP Erp5
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Transcript of What is SAP Erp5
MySAP ERP
Yvonne GenoveseVice President, Research DirectorGartner, Inc.
mySAP ERP - The big AHA!
By 2005, mySAP ERP will be a different product than R/3 Enterprise
(.8 probability).
User Imperative: The question is not “if” toupgrade - it’s when!
Key Issues
What is mySAP ERP and how will it impact SAP users?
How will SAP’s technology and application strategy affect users through 2008?
What are SAP users key challenges in selecting to deploy mySAP ERP over R/3 Enterprise?
3.1I
4.0B
4.6C4.5B
R/3
From R/3 to R/3 Enterprise
BASIS 4.6D
Now
August 2003 (4.6C: March 2005)
Technology:
Availability:
End ofSupport:
WAS 6.20
Now
R/3 Enterprise
Stable
Evolving
R/3 Enterprise
Core
Extensions
From R/3 Enterprise to mySAP ERPmySAP Application Strategy, Part 1
mySAP Business SuitemySAP Business Suite
CRMCRM
SCM
SCM
PLMPLM
Extensions
2003
SRMSRM
NetWeaver
R/3 Enterprise
mySAP ERP
xApp
xApp
xApp xApp
xApp
xApp
xApp
NetWeaverWebAS
NetWeaver
xApps
mySAP Business SuitemySAP Business Suite
CRMCRM
SCM
SCM
PLMPLM
Extensions
2003
SRMSRM
NetWeaver
mySAP ERP
R/3
From R/3 Enterprise to mySAP ERPmySAP Application Strategy, Part 2
R/3 Enterprise vs. mySAP ERP
R/3 Enterprise
– New functionality over 4.6c
– Unicode
– Based on NetWeaver WebAS
– Enhancements encapsulated in Extensions
– Core remains “stable”
– No license upgrade
mySAP ERP
– R/3 Enterprise Functionality plus Analytics, SEM, Financial Supply Chain Management, MSS/ESS, SAP Learning solution, E-Recruiting, Self Service Procurement, Internet Sales R/3 Edition
– Full NetWeaver Suite
– Requires new license contract
– License conversion option for installed customers
mySAP Business Applications Evolution
Includes NetWeaver
Designed for NetWeaver
Based on NetWeaver
mySAP ERP 2002
mySAP ERP 2003
mySAP ERP 2006
R/3 Enterprise NetWeaver Optional
Technology Transition forces Application Code Change
• Requires Componentization of R/3 Enterprise code within mySAP ERP• R/3 Enterprise code will remain a “black box” inside mySAP ERP
Result - At some point, users must migrate from R/3 Enterprise to mySAP ERP
Multienterprise Business Process
4. Value Chain Optimization
Enterprise-Spanning Business Process
3. Enterprise Process
Copyright © 2003
mySAP ERP:Componentization of Objects
Business Process
ApplicationApplication
1. Applications
ReceivablesOrder Entry Fulfillment
Business ObjectsConfigureCredit Check Ship Bill Collect
2. Micro-Flows
R/3 Enterprise 2003
mySAP 2008
Price
Demand to Service
Application
mySAP ERP 2005
SAP NetWeaver - Vision vs Reality
DB and OS Abstraction
.NET WebSphere…
People Integration
Com
posi
te A
pplic
ati
on F
ram
ew
ork
Process IntegrationIntegration
BrokerBusiness Process
Management
Information IntegrationBusiness
IntelligenceKnowledge
Management
Life C
ycle
Manag
em
en
t
Portal Collaboration
J2EE ABAP
Application Platform
Multi-Channel Access
SAP NetWeaverSAP NetWeaver
DB and OS Abstraction
Master Data Management
The Vision:• Single Architecture• Java commitment• Integrates APS and SES• Composite Application Framework • Web services pioneer• Bus Apps Differentiator• Enabler of xApps agility
Source: SAP AG
The Reality (Aug 2003):• Many separate components• Big variation in component maturity and time lines• SAP now competing head on with IBM, MS, Oracle, BEA
DB and OS Abstraction
.NET WebSphere…
People Integration
Com
posi
te A
pplic
ati
on F
ram
ew
ork
Process IntegrationIntegration
BrokerBusiness Process
Management
Information IntegrationBusiness
IntelligenceKnowledge
Management
Life C
ycle
Managem
en
t
Portal Collaboration
J2EE ABAP
Application Platform
Multi-Channel Access
SAP NetWeaverSAP NetWeaver
DB and OS Abstraction
Master Data Management
SAP NetWeaver - Vision vs Reality
The Reality (Aug 2003):• Many separate components• Big variation in component maturity
XI:SAP/
non-SAP
XI:SAP/SAP
Source: SAP AG
EP
MI
BW
MDM
Web AS
KM
The Challenge: When to Upgrade, Not “IF”
SAP R/3 Release Types
mySAP Business SuiteContract
mySAP ERP Contract
SAP R/3 Contract
License Types SAP R/3 SAP R/3 SAP R/3 Release 4.6B Release 4.6C Enterprise and below
SAP R/3 Release 4.6C
>Maintenance: Until Q1/2006<
SAP R/3 Release 4.6B and below >Maintenance: Until end of 2003<
! Risk for customer to go out of maintenance !
SAP R/3 EnterpriseLatest release of SAP R/3
>Maintenance: Until Q1/2009<
Measuring Upgrade Business Benefits and ROI is Tough
Hard Business Benefits ($) must be tied toreal Key Performance Indicators (KPI’s) Difficult to Justify Technology only Upgrade
Witchcraft needed because everything changes simultaneously during the SAP project: Industries, Enterprise economics, technology, other Projects, ...
KPI’s must be measured before and afterany SAP project or improvement
BUT: Smart Enterprises can still do it In tough times we have to try harderTHE RESULT IF YOU DON’T:
Potentially more expensive upgrade later
• Inventory level• On time delivery
KPI’s
SAP Customer Dilemma:Lack of Best/Next Practice Resources
Implementation
C O
S T
T I M E
Production
Go-LiveGo-Live
Current Current SystemSystem
Upgrade
Best Practices
Production
• ESP• SAP PSO
• ESP• SAP PSO
Customer Choices:1) Build Internal through Competency Center2) Develop Relationship with Regional ESP
Next Practices
License ModelChoice of e-business platform or component strategy. Fee for three role-based, named users.Automated B2B transactions charged via software engines based on sales and purchase orders.Maintenance: 17 - 23 percent
Top Five Terms to Negotiate: Full 100 percent credit for R3 investment, and for future conversion
from mySAP ERP to mySAP Business Suite if required. On larger deals, minimize uplifts outside
Euro-zone countries Understand ‘indirect access’: Specify exactly when licenses for
external systems accessing SAP software are required, be particularly careful with BW (OpenHub)
Right to outsource Rights to custom-developed code
SAP License Terms to Negotiate:
SAP Licensing: ‘This Is Getting Harder…’
Business Suite Licensing Access to Everything Shelfware
Solution Licensing Pay as required Higher Overall Cost
Maintenance No Option Maint for Shelfware
New functionality Next/Best Practices SAP Option to Charge
Engines Industry Functionality Separate Pricing
Data Extraction (BW, XI) Pay as required Not Included in Suite
International Transl/Local. Price Uplift
Pricing Type Strengths Challenges
mySAP Business Suite Pricing Model:
m
y SA
P C
RM
m
y SA
P S
CM
m
y SA
P E
RP
m
y SA
P F
IN
m
y SA
P H
R
m
y SA
P P
LM
m
y SA
P S
RM
Software Engine fees: (e.g Purchase Order/ Sales Order e.g Purchase Order/ Sales Order Industry Solutions based on industry metrics)Industry Solutions based on industry metrics)
Professional
E3800Limited Prof.
E1600
(mobile E800)Employee
E400
Fu
nc
tio
na
lity
/ P
ric
eF
un
cti
on
ali
ty /
Pri
ce
Named User fees (4 categories)
Developer
? Up to E5700
SAP Maintenance
Standard offering (17%)
– Technical Support and Rights to New Versions
– 2 Early Watch checks and either SAP GoingLive Check, SAP GoingLive Functional Upgrade Check, or SAP OS/DB Migration Check.
Max-Attention Service Level offering (20%)
– Guaranteed response time for very high priority incidents
– Safeguarding for up to 2 mission critical projects and named contact in SAP support services
Max-Attention OnSite offering (23%)
– Above plus two full-time on-site consultants
License ModelChoice of business suite platform = all SAP applicationsor solutions = mySAP ERP, or other single application. Fee for three role-based, named users.Automated B2B transactions charged via software engines based on sales and purchase orders.Maintenance: 17 - 23 percent
Top Five Terms to Negotiate: Full 100 percent credit for R3 investment, and for future conversion
from mySAP ERP to mySAP Business Suite if required. On larger deals, minimize uplifts outside
Euro-zone countries Understand ‘indirect access’: Specify exactly when licenses for
external systems accessing SAP software are required, be particularly careful with BW (OpenHub)
Right to outsource Rights to custom-developed code
SAP License Terms to Negotiate:
Six Steps of Preparation for mySAP Licensing:
1. Establish a negotiating team with representation from all participating business units.
2. Define requirements (technology and functionality) over two to three years with focus on funded projects.
3. Perform a physical inventory of SAP licenses and existing contract terms; understand new models and terms. Compare with new proposal.
4. Determine whether purchase can be made under existing agreement (mySAP Business Suite - .com). Weigh re-licensing benefits against loss of favorable terms.
5. Balance additional discount with potential shelfware.