How to make the case and persuade a Customer to move to mySAP ERP at the earliest opportunity…
Issued by: Global Solution Marketing - ERP
Why move from SAP R/3 to mySAP ERP?
SAP Security Level:
Internal Use Only
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What is the document about?
This document is a sales-guideline and provides an overview on the key reasons why customers should move to mySAP ERP.
Therefore we focus on customer needs (installed base) and outline the benefits from a technical, business and maintenance point of view. These benefits are supported by the findings of a specially commissioned ‘mySAP ERP Customer Survey’ market research program delivered by Gerlach, Porst & Steiner in Nov 2004.
We identify the key reasons, why an SAP R/3 customer should do the transition to mySAP ERP, and also discuss how to deal with potential objections.
This guide is designed for SAP Sales Account Executives in SAP’s direct sales channels.
Slides are ‘SAP Internal Only’ or ‘CONFIDENTIAL’ and must not be used externally. Slides include Notes that may contain Company Confidential statements.
Introduction
What customers want … what mySAP ERP offers
Sell the transition story
Transition options & transition support
How to deal with objections?
FAQ: technical aspects
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 5
1144 customers
414 installed-base customer conversions
730 net new customers
~85 % in mid market
589,6 million Euro achieved (286,8 million ytd)
44 live reference customers
constant growth on rapid path
mySAP ERP … TODAY*
* Source: 03.12.04
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mySAP ERP: the challenge for 2005
€1.45bn mySAP ERP software revenue target
10% of SAP R/3 licensed installed-base customers to convert to mySAP ERP license (30% in EMEA Central)
mySAP ERP contracts in Mid-market between 50 - 75 % depending on region
150 reference customers
SAP Security Level: CONFIDENTIAL
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Innovation
Invention
Standard-ization
Commodi-tization
COREactivities help differentiate in
markets to stimulate growth
CONTEXT activities support
all your operations need to be
efficient as possible
Processes that must run to enable you to satisfy your
customers
Processes that generate new,
additional value that attract and keep
customers
The business challenge of mature companies
mySAP ERPfor profitable growth
EfficiencyGrowth
How do you balance the necessity for efficiency, against the need for chaos to stimulate differentiation and growth?
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Key differences between SAP R/3 and mySAP ERP
Client/Server Architecture
Web Application Server
Transactional user
Data-centric
Enterprise processes
Real-time data processing
Enterprise Services Architecture
Designed for SAP NetWeaver
Business user
Message-centric
End-to-end processes
Real-time business
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Installed-base customers
Experience the same generic IT challenges: Provide Scalable systems
Implement homogeneous systems infrastructure
Centralize systems
Replace Legacy
Reduce downtime
Reduce TCO
Have pain points that are strongly related to their overall experience with SAP solutions so consideration needs to be given to: Release version
Transition path
License issues
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WHAT CUSTOMERS WANT….WHAT mySAP ERP OFFERS…
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Customer needs – a deep insight
We have a clear insight in what our customers want.
We know about our customer needs and their requirements and we know, what kind of problems our customers face every day…
from ongoing ‘Customer Surveys’
from day-to-day contact
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Customer needs – mySAP ERP solution
Overview
mySAP ERP solves this through: Customer NeedsCustomer Needs
Strategic Business AdvantageBetter support for mgt. decisionsBetter support for mgt. decisions
SAP BI and SAP SEM enhancing transparency and control
Information in real time is one of the most important drivers for transition
Information in real time is one of the most important drivers for transition
SAP NetWeaver allows quick adaptation of processes based on open and flexible application platform
Flexibility and Adaptability Easy adaptation to changeEasy adaptation to change
Flexible IT infrastructure is also one important driver for transition
Flexible IT infrastructure is also one important driver for transition
People centric approachBetter usabilityBetter usability
ERP Self-Services & Role-based Portals empower people by providing easy access and intuitive design
Customers want their employees to have better access to all functions
Customers want their employees to have better access to all functions
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Customer needs – mySAP ERP solution
Overview
mySAP ERP solves this through: Customer NeedsCustomer Needs
Enhanced capabilities are reducing operational costs
Improved Productivity Performance / Process Optimization
Performance / Process Optimization Customers need to constantly improve their operational excellence and reduce cost
Customers need to constantly improve their operational excellence and reduce cost
Enhanced capabilities allow efficient interaction with business partners and support end-to-end operations
Extension of processes Extension of processes
Integration of internal processes with customers and suppliers is getting more important
Integration of internal processes with customers and suppliers is getting more important
Integration of business processes
Reduced TCOs
SAP NetWeaver and content ready provided by mySAP ERP reduces development cost
More IT Efficiency at less cost
More IT Efficiency at less cost Cost issues are an important driver to move to mySAP ERP
Cost issues are an important driver to move to mySAP ERP
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Customers want …
Better support for management decisions
The right information in real time is one of the most important drivers for transition for our installed-base customers.
Source: Customer Survey 2004, installed base (19 interviews)
37%37%Comprehensive analytics & reporting capabilities
Provide reliable Management reports
Clear overall view of business processes
Improved & faster decision making & control
Integrated operational control and execution
42%42%
20%20%
26%26%
5% 5%
Top of mind Statement: Introduction of new Solutions - BI 47 %47 %
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Strategic Business Advantage
Better access to key internal/ external information across the business
Streamlined internal and external reporting
Real-time business information
Improved forecasting accuracy and timeliness
Shorter closing cycle times
Increased transparency and corporate trust
Improved decision support and control
Faster strategy execution
mySAP ERP provides …
SAP SEM
Analytics
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Source: customer survey 2004, installed base (19 interviews)
Customers want …
Easy adaptation to change
The most important drivers for transition is a flexible IT infrastructure, that allow fast and cost-efficient adaptations to change and new requirements.
32%32%Extend and integrate new requirements
Reflect organizational changes
Be prepared for new opportunities
Increase efficiency to cope with rapid growth
Reflect changes in business model
37%37%
10% 10%
20%20%
5% 5%
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mySAP ERP provides …
Flexibility and Adaptability
Quick adaptation of processes based on an open and flexible application platform
Allows to consolidate and leverage existing assets
Increases implementation speed and continuous business innovation
Enables a new breed of applications
Reduces TCO
SAP NetWeaver
SAP Business Intelligence
SAP Enterprise Portal
SAP Exchange Infrastructure
SAP Master Data Mgmt
SAP Mobile Infrastr.
SAP Composite Applic.Framework
SAP Web Application Server
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Customers want…
Better usability
Customers want their employees to have better access to all the functions and services they need for their work.
In fact, the top criteria to decide whether the IT system implementation is successful or not are:
1) cost savings
2) internal user satisfaction
37%37%Give easy access to complete solution capabilities
Provide employees with intuitive usability42%42%
Source: customer survey 2004, installed base (19 interviews)
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mySAP ERP provides …
People-centric approach
Easy access to information, applications and services
Intuitive design and navigation
Enables people to complete their jobs faster
Relevant budget, process and decision information always available
Information actively “pushed” out to user
Occasional users have easy access
Minimal training needed
Role-based Portals
Self-Services
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Customers want
Extension of processes beyond the enterprise
Integration of internal processes with customers and suppliers processes is getting more and more important.
15%15%Collaborate with external partners
Source: customer survey 2004, installed base (19 interviews)
12% 12%Integrate with other lines of business
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Integration of business processes
More efficient interaction with business partners
High level of third party integration in enterprise processes
mySAP ERP delivers…
FinancialSupply Chain Mgt.
e.g. Internet-Sales
mySAP ERP HELPS PÖTTINGER BUILD COMPETITIVEDIFFERENTIATORS
The online Web shop is perceived as a key competitive differentiator in Pöttinger’s partner program for dealers and repair shops: it allows users to identify spare parts numbers by drilling down to exploded drawings of Pöttinger machines, allowing users to “make things easier for themselves with Pöttinger.”
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Customers want
Performance / process optimization
Performance Management still is the focus of business executives.
Source: customer survey 2004, installed base (19 interviews)
Increase efficiency to cope with rapid growth
Easy support of new business models
20%20%
15%15%
Top of mind Statement: General Cost Pressure / Consolidation 20 %20 %
Consolidate and leverage existing assets20%20%
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e.g. Mobile Business
mySAP ERP offers …
Improved productivity
Reduction of operational costs thanks to business performance improvement:
e.g. faster and more cost effective procurement process
e.g. speeding up sales cycle with on the spot, just-in-time information
e.g. reduce sourcing and administration costs via E-Recruiting
e.g. self-service requisitioning
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Customers want …
More IT efficiency at less cost
Cost issues are an important driver to move to mySAP ERP
Source: customer survey 2004, installed base (19 interviews)
15%15%Managing exploiting IT landscape cost
General cost pressure
Reduced total cost of ownership
Low integration and operational cost
20%20%
16%16%
21%21%
Top of mind Statement: Optimizing license cost 25 %25 %
Easy integration of other vendor’s applications 37%37%
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mySAP ERP offers …
Reduced Total Cost of Ownership
60%
15%15%
40%
OPERATION
INNOVATION
TCO today
TCO 3 yearsfrom now
85%85%
SAP NetWeaver
SAP Enterprise Portal
SAP Master Data Mgmt
SAP Business Intelligence
SAP Exchange Infrastructure
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SAP surpasses competitor offerings
Unsurpassed integration within and beyond the SAP functions
Functional scope and depth
SAP is the international standard
SAP is a safe choice
Best in class solution
Flexibility to adopt / to support growth
Installed-base customers appreciate SAP´s good reputation
Source: customer survey 2004, installed base (19 interviews)
62 %62 %
31 %31 %
25%25%
16%16%
25%25%
25%25%
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The new technology platform is important for the future systems strategy
Advancement in Technology
Bu
sin
ess
Req
uir
emen
ts
Integrated processes
Adaptable business
Replace
Leverage
CentralizedComputing
Client/ServerArchitecture
XX
Service-Oriented Architectures
Automation
Efficiency& Control
StrategicValue
SAP R/2 SAP R/3 mySAP ERP
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Therefore it is important to move to ESA
What is ESA? And how does it work?
ESA or ‘Enterprise Services Architecture’ is an application architecture in which all functions, or services, are defined using a description language and have platform-independent interfaces
Service RegistryService Registry
Request a servicePublish a
service description
Service ProviderService Provider Service RequesterService Requester
Bind to the service
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Enterprise Services Architecture - Core Benefits
Business Agility Easily change business processes
Increase implementation speed
Value Network Extension Outsourcing/leverage business partner services
Provide/sell services to business partners
Continuous Business Innovation Enable a new breed of applications (SAP xApps)
Allow various speeds for adoption of innovation
Leverage existing investments Leverage existing SAP and 3rd party and legacy systems
Drive lower TCO
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SAP Web Application Server
Tech
nolo
gy
Applic
ati
on
SAP Basis
SAP R/3up to 4.6C
SAP R/3 Enterprise
mySAP ERP Edition 2003
Application
mySAP ERP Edition 2004
SAP R/3 Enterprise Core
SAP NetWeaver™ ‘04
Co
mp
osi
te A
pp
licat
ion
Fra
mew
ork
APPLICATION PLATFORM
Life C
ycle Mg
mt
SAP Enterprise Extension Set
Composite Applications
PEOPLE INTEGRATIONMulti Channel Access
Portal Collaboration
INFORMATION INTEGRATION
Master Data Mgmt
Bus. Intelligence Knowledge Mgmt
PROCESS INTEGRATIONIntegration Broker
BusinessProcess Mgmt
J2EE ABAP
DB and OS Abstraction
Self-Service Procurement
SAP R/3 Enterprise
SAP R/3 Enterprise Core
SAP Enterprise Extension Set
Strategic Enterprise Management
Internet Sales
Self Services
… and more
Additional Components
SAP ECC Core
SAP ECC Extension Set
Switch Framework
Strategic Enterprise Management
Self Services
Additional ComponentsSelf-Service Procurement
Internet Sales
SAP ERP Central Component 5.00
SAP NetWeaver™
Co
mp
osi
te A
pp
licat
ion
Fra
mew
ork
APPLICATION PLATFORM
Life C
ycle Mg
mt
PEOPLE INTEGRATIONMulti Channel Access
Portal Collaboration
INFORMATION INTEGRATION
Master Data Mgmt
Bus. Intelligence Knowledge Mgmt
PROCESS INTEGRATIONIntegration Broker
BusinessProcess Mgmt
J2EE ABAP
DB and OS Abstraction
… and more
Explain the architecture of mySAP ERP
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 32
mySAP ERPAnalyticsFinancials
Human Capital ManagementOperations
Corporate Services
SAP NetWeaver™
Co
mp
os
ite
Ap
pli
cati
on
Fra
me
wo
rk
Life
Cy
cle M
gm
t
…
… and SAP NetWeaver – the new technology platform
PROCESS INTEGRATION
Integration Broker
BusinessProcess Mgmt
INFORMATION INTEGRATIONBus. Intelligence
Master Data Mgmt
Knowledge Mgmt
PEOPLE INTEGRATIONMulti channel access
Portal Collaboration
…Financial Supply Chain Management,Self-Service Procurement…
… Strategic Enterprise Management,Manager Self Services…
… Self-Services, Collaborative Folders and Collaborative Projects…
APPLICATION PLATFORMJ2EE
DB and OS Abstraction
ABAP…Self-Services,Adobe Printing Forms…
Robust integrated platform Ease of use through portal Ease of collaboration Streamlined Data Management Powerful analytical platform Streamlined and adaptive integration
environment Scalability & Performance
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Highlight the differences of SAP R/3 & mySAP ERP
The following slides highlight the new & enhanced capabilities …
Self-Services and Roles in mySAP ERP
AnalyticsStrategic Enterprise
ManagementFinancial Analytics Operations Analytics Workforce Analytics
Financials Financial Accounting Management AccountingFinancial Supply Chain
ManagementCorporate Governance
Human Capital Management
Employee Life-Cycle Management
Employee Transaction Management
HCM Service Delivery Workforce Deployment
Operations: Value Generation
ProcurementInventory & Warehouse
ManagementManufacturing Transportation
Sales Order Management
Customer Service
Operations: SupportLife-Cycle Data
ManagementProgram & Project
ManagementQuality Management
Enterprise Asset Management
Corporate Services Travel ManagementEnvironment, Health &
SafetyIncentive & Commission
ManagementReal Estate Management
SAP NetWeaver™ People Integration Information Integration Process Integration Application Platform
Extensive analytics, intuitively accessible
portal's)
Supports full procure-to-pay and order-to-
cash processes
Unique set of value-added services to greatly improve management of
resources and assets
Streamlines invoicing and
payment processes
Model, execute, and monitor processes across
technology and the organization
Mobile Infrastructure, portal connects people
Aggregate and analyze information across technology and the organization via SAP
Exchange Infrastructure
Open system architecture enables easier integration
Motivate employees to achieve, and design
innovative reward strategies
Self-serve portal increases flexibility and
productivity
Ensures adherence to new legal obligations
Empowers employees and improves HCM, reducing costs
Includes Internet Sales to boost revenues
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Sell the New & Enhanced Capabilities of mySAP ERP 2004
Self Services Consistent Navigation and
User Interface Home Page concept Area Page concept Roadmap concept
Employee Self Services Time-Posting corrections
Manager Self Services Requisition Request Equipment Management Approval Processes Interactive Forms / Portal
Mgt. Capabilities for IT Staff
Benefits
Intuitive design & navigation allows people to complete their jobs faster
Occasional users have easy access
Minimal training needed
More guidance
Less complexity
Reduced cycle times
Enhanced control
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Sell the New & Enhanced Capabilities of mySAP ERP 2004
Role Concept HR Executive Role Compensation Specialist Role Plant or Production Manager
Role Purchasing Agent Role Internal Sales Representative Business Unit Analyst Role
Benefits
Central point of access based on user role
Relevant budget, process and decision information always available
Information actively “pushed” out to user
Integrated knowledge management to find relevant structured and unstructured information quickly
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Sell the New & Enhanced Capabilities of mySAP ERP 2004
Strategic Enterprise Mgt.
Balanced Scorecard Briefing Book
Legal & Mgt. Consolidation Integration of Statutory and Mgt.
Consolidation Consolidation of Investments Data Collection Capabilities Reporting Features
Benefits
Improved decision support and control
Shorter closing cycle times
Improved forecasting accuracy and timeliness
Enhanced efficiency in finance processes
Enhanced usability and user guidance
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Sell the New & Enhanced Capabilities of mySAP ERP 2004
Financial & Mgt. Accounting
General Ledger Data Structure Standardization General Ledger Extensions Online Splits Real-time Integration Parallel Accounting
Fast Close Support Fast Close Support
Benefits
Simplifies Data Management
Enables more flexible consolidated reporting and analysis
Supports transparency and fast closes
Improved employee productivity and reduced cost
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Sell the New & Enhanced Capabilities of mySAP ERP 2004
Financial Supply Chain Mgt.
Credit Management Electronic Bill Presentment &
Payment Dispute Management Collection Management In-House Cash Cash & Liquidity Management Treasury & Risk Management
Benefits
Efficient processing of payments and irregularities
Improved liquidity planning
Consistent company-wide credit policy
Proactive credit risk management
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Sell the New & Enhanced Capabilities of mySAP ERP 2004
Corporate Governance
Management of Internal Controls Audit Information Support Support for Whistleblower
Complaints
Benefits
Greater scrutiny
Sarbanes-Oxley and Basel II compliance
Shareholder protection
Reduced risk of noncompliance
Reduced costs
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Sell the New & Enhanced Capabilities of mySAP ERP 2004
Human Capital Management
Recruiting and Talent Mgt. Talent Relationship Mgt. Applicant Tracking Analytics
Performance Management Performance Appraisal Mgt. Employee development Attachment processing Appraisal calibration Template management
Enterprise Learning Integrated collaboration features Content integration / authoring Portal based access for people with
disabilities Correspondence Management
Benefits
Find suitable high quality candidates to fill positions quickly
Align recruitment activities to enterprise strategy
Reduce sourcing and administration costs
Enable employees to pick up new skills with a combination of classroom training and E-Learning
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Sell the New & Enhanced Capabilities of mySAP ERP 2004
Operations Value Generation
Order Processing using RFID Documentary Batch
Benefits
Improved transparency by real time connection of the physical world (cases, pallets,..) to business applications
Simplified internal logistic processes
Allows traceability of material flow with minimal TCO
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Sell the New & Enhanced Capabilities of mySAP ERP 2004
Operations Support
Trials in Recipe Management NPDI Process report Recipe creation Trial development Information access
Benefits
Enhanced usability by integrating product, formula and quality definition and execution into one environment
Speed up development process by user guidance and provided automation of development steps
Simplified handling and easier use
Efficient document retrieval
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Sell the New & Enhanced Capabilities of mySAP ERP 2004
Operations Support
Lifecycle Data Management Simplified Document Mgt. Internal & Ext. Document
Access CAD Integration Product Modeling for
Configurable Products Collaboration with Partners &
Suppliers Guided Procedures
Benefits
Enhanced usability
Speed up development process
Intuitive handling
Optimized work-flow
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Sell the New & Enhanced Capabilities of mySAP ERP 2004
Operations Support
Program and Project Management Mgt. of Collaborative Projects Resource-related Down
Payments and Billings
Quality Management Trial-specific Stability Studies Quality Assurance and Control Quality Improvement
Benefits
Real-time collaboration
Manage resources across organizational boundaries
Integrates quality-relevant information into the product development process
Improved usability and user acceptance
Better system performance
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Sell the New & Enhanced Capabilities of mySAP ERP 2004
Operations Support
Enterprise Asset Management Mobile Asset Management Maintenance Cost Budgeting
Benefits
Provides all necessary information to carry out on-site service
Elimination of paper-based orders
Increased data entry accuracy
Automated and standardized budgeting processes
Improved efficiency
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Sell the New & Enhanced Capabilities of mySAP ERP 2004
Corporate Services
Travel Management Employee Self-Services for
Travel and Expenses Mobile Travel Expenses
Environment, Health & Safety Data Import from External Content
Providers Management of Incentive
Compensation Plans
Benefits
Easy and direct access to a range of travel services for employees
Improved user acceptance
Reduced administrative costs
Increased visibility of accounting data
Flexibility and fast content creation
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Sell the New & Enhanced Capabilities of mySAP ERP 2004
Corporate Services
Incentive & Commission Management Calculation of Variable
Compensation Compensation Results Analysis
Real Estate Management Space Management Rental Vacancy Management Rent Adjustments Service Charge Settlements Integration to Financials Reports and Invoicing
Benefits
Ensured consistency in incentive compensation plans
Reduced administrative burdens
Better insight & enhanced transparency
Enhanced analysis options
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Customer value perception on mySAP ERP
LA(National player)
LKA(Multi-national
player)
GA(Global player)
SAP Strategic Enterprise ManagementSAP Business Warehouse
Additional User
SAP Self Services
SAP collaborative PLMSAP collaborative PLM
SAP Self-Services ProcurementSAP Self-Services Procurement
SAP Internet SalesSAP Internet Sales
SAP Enterprise PortalSAP Enterprise Portal
SAP Self ServicesSAP Self Services
Perceivedvalue
SAP Exchange InfrastructureSAP Exchange InfrastructureSAP Exchange Infrastructure
SAP Enterprise PortalSAP Enterprise PortalSAP Enterprise Portal
SAP Mobile InfrastructureSAP Mobile Infrastructure
SAP Master Data Mgt.SAP Master Data Mgt.SAP Master Data Mgt.
SAP Web Application ServerSAP Web Application ServerSAP Web Application Server
Significant demand
Strong demand
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mySAP ERP 2004 Ramp-Up proves Next Generation ERP Success
Business Value
Technical Value
Low High
= Customer
High
Technical Upgrade Cherry Picker
Cherry Picker Next Generation ERP
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A clear maintenance strategy allows to plan ahead
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 52
Two directions for your sales argumentation
Implementation / Upgrade
License ConversionLicense Conversion
Demonstrating customers how they can benefit from - implementing new/enhanced business scenarios- consolidating their IT landscape and leveraging existing assets- deploying ECC 5.00 (i.e. physically upgrading).
Demonstrating customers why a
license conversion to mySAP ERP is the right strategic decision and how they will benefit if they convert NOW!
Demonstrating customers why a
license conversion to mySAP ERP is the right strategic decision and how they will benefit if they convert NOW!
CIO, IT-Manager, LoBs
CEO, CFO, CIO
Focus discussion pointFocus discussion pointTarget GroupTarget Group … talk about… talk about
• Benefits from conversion allowance • Package Pricing includes additional
scenarios• New and enhanced capabilities of
mySAP ERP 2004 / 2005 / Roadmap• Basis for technical implementation /
upgrade
• Benefits from conversion allowance • Package Pricing includes additional
scenarios• New and enhanced capabilities of
mySAP ERP 2004 / 2005 / Roadmap• Basis for technical implementation /
upgrade
• New and enhanced capabilities of mySAP ERP 2004
• Available Industry Solutions• Release 4.6c and later:
implementation • Release prior to 4.6c: implementation
and upgrade• Proof Points for additional value
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Customers have different options based on release
SAP R/3Enterprise
SAP ERP 2004
SAP R/3Release 4.6BAnd below
SAP R/3Release 4.6C
Maintenance extension fee
Option IIStay until 2009
Maintenance extension fee
SAP/R3 Enterprise SAP ECC 5.00
Option III
Stay until 2006
Upgrade to
Stay until 2012
Maintenance extension fee
Stay until 2013
Maintenance extension fee
Upgrade to
SAP ECC 5.00
Upgrade to
SAP ECC 6.00
SAP ERP 2005
Option IStay until 2009Stay until 2006 Stay until 2010
Mainstream Maintenance
But we need to persuade them to move sooner rather than later.
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How to convince customers to upgrade?
Recommended Option
• Convert to mySAP ERP / Business Suite
• Upgrade to SAP ECC 5.00
• Full Value of additional functionality provided in mySAP ERP
• Maintenance continues
Interim Option 2 • No conversion to mySAP ERP / Business Suite
• Stay till 2006 on current release (additional maintenance fee)
• Business buys time before final decision
• Maintenance continues but at higher cost
Interim Option 1 • No conversion to mySAP ERP / Business Suite
• Upgrade to SAP R/3 Enterprise
• Only Value of SAP R/3 Enterprise
• Maintenance continues
There is a lot functionality that hasn’t been taking advantage of and normal maintenance is about to expire.
SAP R/3: Release 4.6B and below
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How to convince customers to upgrade?
SAP R/3: Release 4.6C
Recommended Option
• Convert to mySAP ERP / Business Suite (till latest 2006)
• Upgrade to SAP ECC 5.00
• Full Value of additional functionality provided in mySAP ERP
• Maintenance continues
Interim Option 2 • Convert to mySAP ERP / Business Suite
• Stay till 2006 on current release
• Only benefit from conversion allowance
Interim Option 1 • No conversion to mySAP ERP / Business Suite
• Upgrade to SAP R/3 Enterprise
• Only Value of SAP R/3 Enterprise
• Maintenance continues
Interim Option 3 • Stay till 2009 on current release• (additional maintenance fee)
• Business buys time before final decision
• Maintenance continues but at higher cost
Organizations need to extend their integration efforts and integrate with their suppliers, partners and customers. mySAP ERP provides additional functionality to support this extended enterprise.
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 56
How to convince customers to upgrade?
Recommended Option
• Convert to mySAP ERP / Business Suite (till latest 2009)
• Upgrade to SAP ECC 5.00
• Full Value of additional functionality provided in mySAP ERP
• Maintenance continues
Interim Option 1 • No conversion to mySAP ERP / Business Suite
• Stay till 2009 on current release
• Only Value of SAP R/3 Enterprise
• Maintenance continues
Interim Option 3 • Stay till 2012 on current release• (additional maintenance fee)
• Business buys time before final decision
• Maintenance continues but at higher cost
Interim Option 2 • Convert to mySAP ERP / Business Suite
• Stay till 2009 on current release
• Only benefit from conversion allowance
If our customers make this move, we can focus our efforts on new functionality and provide better service. This creates a unique opportunity to take advantage of our transition support and participate in a “win/win”
SAP R/3: Release R/3 Enterprise
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 57
How to convince customers to upgrade?
The value for our customers to upgrade depends on his situation and is probably the higher the older the current release is!
mySAP ERP
R/3 Enterprise
R/3
V ALUE
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 58
OTHER LoS
HOSTING
ImplementationImplementationDiscoveryDiscovery Operation & Continuous Improvements
Operation & Continuous Improvements
SAP Evaluation Hosting
SAP Application Management
SAP ImplementationHosting
SAP Ramp-UpHosting
SAP Upgrade Hosting
SAP Remote Application Operation
SAP Application Hosting
SAP Hosted E-Learning
SAP Development & Prototype Hosting
SAP Development & Prototype Hosting
Technical AM
Functional AM
PackagesPrimary Target Audience
ConsultantsProject Team and Support
StaffSuper Users & End Users Executives
SAP Key Solution my SAP ERP SAP NetWeavermySAP Business Suite (CRM,
SCM, PLM, SRM)Small and Medium Business
Services and Tools Education Consulting Assessment and Certification SAP Tutor Performance Tools
Content Type Functionality and Configuration Business Processes and Scenarios Vertical Industry Knowledge
Content Customization Standard Country-specific Customer-specific Learner-specific
Delivery Loaction SAP Training Center 3rd Party Training Center On-site Learner's Workplace
Delivery Timing By Learner By Customer By SAP
Delivery Channel Physical Classroom Virtual ClassroomSelf-paced Online /
OfflineCommunity
Learning Management Solution
KTE and MeasurementPerception of Learning
ProcessAmount of Actual Learning Performance Improvement Business Impact (TCO & ROI)
Duration of Relation Clustered Learning Continuous Learning
EDUCATION
To Empower Account Executives and Services Sales an Aligned Customer Driven Services Portfolio is Provided
AccountExecutives
Service Sales(e.g., CEMs)
Customer
Solution Support Services
Price ListOfferings
Solution Management Optimization
PerformanceApplication IntegrationSystem AdministrationData VolumesTestingEarly Watch Reporting
EmpoweringSAP Operations CompetenceAssessmentSAP Operations CompetenceEmpoweringEmpowering WorkshopsServices to support theimplementation of SAP Solution ManagerSAP Online KnowledgeProducts
SafeguardingSafeguarding for
ImplementationSAP Safeguarding for Solution
ImprovementSafeguarding for Upgrades
SAP Maintenance Contract (Standard Support)Administration and Automation; Access to Best Practices; Empower CCC; Proactive RemoteServices; SAP Software Upgrades; Monitoring for systems and core business processes; problem resolution; global 7x24 problem resolution; global 7x24 escalation procedures
CustomizedOfferings
All support services are powered by
SAP Solution Manager
Premium Support: SAP MaxAttention
AGS
IT services value chain
Service object
IT infrastructure design
Business process outsourcing
HW maintenance & support
(Custom) apps/ functionality development
Infrastructure integration
Training/educationArchitecture consulting/ solution design
Business process re-engineering
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ApplicationImplementation
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Scenario/process design, value ass.
Technology architecture design
Process change management
Corp. business strategy consult.
Severe recent price
erosion
IT services value chain
Service object
IT infrastructure design
Business process outsourcing
HW maintenance & support
(Custom) apps/ functionality development
Infrastructure integration
Training/educationArchitecture consulting/ solution design
Business process re-engineering
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ApplicationImplementation
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Technology architecture design
Process change management
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CONSULTING
Introduce ONE Comprehensive Customer Driven Services Portfolio
Services help you to convince and win your customer
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 59
Our Services help to convince your customers and answer their questions
Concern/question Answer
Why should I transition to mySAP ERP? What is the added value?
How does it all fit into my existing landscape?
How can I ensure my staff will use it? How much loss of time is involved?
How does SAP meet my (global) business requirements and strategy?
How can I minimize risks and costs during project execution
How can I ensure business continuity and minimize downtime?
Discovery Workshop (Quick) Check
Technical & Solution EvaluationTechnical Integration Check
ESA RoadmapGlobalization Workshop Technical & Solution Evaluation
End User trainingProject team training
GoingLive CheckSmart Start Hosting (Quick) Upgrade EvaluationTechnical Integration Check
Downtime Assessment Monitoring Design
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 60
The ERP Transition and Upgrade Service Map
Plan Build Run
Optimize*
*Optimization services are mainly identified within the run phase, but will often lead back into a new project plan and/or build phase
2Best application/ technology landscape
Unicode Conversion Service DMA/DAO
Technical Upgrade and ImplementationESA Roadmap
ESA Reference Architecture Client Migration Service
Globalization Workshop Component Migration Service
Education Services and Tools
Technical & Solution Evaluation
Project Preparation Service
Knowledge Transfer OptimizationDiscovery Workshop Application Solution & Management by Hosting Managed Services
(Quick) Upgrade Evaluation
(Quick) Check Scenario Implementation
Best business solution fit
1
Risk mitigation/ insurance GoingLive Check
GoingLive Functional Upgrade (GLFU) Check
Upgrade Coach
End User Training
Mgnd Ser. Suite: From Discovery and Implementation to Apps Ops/Smart Start Hosting
Downtime Assessment UWS
Test Optimization Service
Technical Integration Check Monitoring Design
Certification & Assessment
3 Project Team Training
SAP Modification Clearing
Component Allocation Workshop
Managed Services Suite: Application Operations and Continuous Improvement
There are 31
Support Services
offered by SAP!
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 61
SAP NetWeaver™ ‘04
Composite Applications
PEOPLE INTEGRATION
Multi Channel Access
Portal Collaboration
SAP ECC Core
SAP ECC Extension Set
Switch Framework
Strategic Enterprise Management
Self Services
Additional ComponentsSelf-Service Procurement
Internet Sales
SAP ERP Central Component
… and more
Fixed-Price Hosting Service
SAP Hosting Services
Initial costsHardware costs
IT infrastructure costs
Internal staff costs for implementation,IT support and user training
Professional services for configuration
Ongoing costsOperating costs
Hardware and IT infrastructure maintenance
Technical Support
System administration labor costs
Fixed-Price Models
mySAP ERP 2004
Ongoingcosts
Ramp-Up
IH, AH, AM*
Packaged Solution
Initialcosts
* IH = Implementation Hosting AH = Application Hosting AM = Application Management
mySAP ERP – Fixed-Price Offering Eliminates Risk
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 62
mySAP ERP Hosting Services
Upgrade Hosting
Upgrade hosting is a black-box service for upgrading customers from SAP R/3 4.6C to mySAP ERP.
The upgrade service tem-porarily provides the IT infrastructure required for an upgrade.
SAP customers who think they will have fundamental problems upgrading their existing systems should be introduced to the upgrade service.
Implementation Hosting Customers do not have to
invest in hardware until all business scenarios in the hosted system landscape are performing at 100%.
Once the system has gone live, it can be handed over to the customer without problem
The service enables customers to plan the costs of implementing mySAP ERP and it is flexible enough to allow them to begin operating the system themselves at any time.
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 63
For further information please visit the following places
Extended Maintenance (http://service.sap.com/maintenancestrategy)
SAP Functional Upgrade Check (http://service.sap.com/safeguardingupgrade)
Upgrade Information Center (http://service.sap.com/upgrade)
SAP Safeguarding for Upgrades (http://service.sap.com/safeguardingupgrade)
SAP Consulting – Upgrade Focus Group (http://service.sap.com/ufg)
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 65
How to deal with objections?
Objection: why should we make changes?
We invested a lot of time and money in current ERP solution
The process was often painful
Our system is now running smoothly now ?How to answer?
Businesses evolve incrementally. Over time, the cumulative impact of changes on the capabilities of the ERP system can be negative.
Probably modifications to business processes may not have been implemented well in the IT infrastructure, or may not have been automated at all.
Maybe you have avoided altering the ERP system because it could not support changes or changes were too expensive.
Over time, even the best technology becomes functionally obsolete.
Software value declines over time. It is a depreciating asset.
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 66
How to deal with objections?
Objection: why is flexibility important now?
To avoid problems with release changes we tried to remain as close as possible to the SAP standard
Now everybody is talking about flexibility - why? ?How to answer?
Remaining at standard meant to avoid - if possible - modifications which improved the costs for change to next release.
On the other side our customers want for its business exactly these modifications. Flexibility is getting more and more important.
The advantage of our Enterprise Service Architecture, ESA consists now of reducing the contradiction between flexibility and standard.
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 67
How to deal with objections?
Objection: we were glad to have the solution for a while
Finally we were used to the system. We don´t want a new release every year…
Who actually called after a recent architecture change? ?How to answer?
Integration needs of customers rise continuously and business requirements are changing.
Architectural Renewal is a necessity in the world of Enterprise Software
The situation can be compared with driving the equivalent of an aging car.
There is no big change in handling - the ABAP server does not function differently than the SAP basis delivered with SAP R/3.
“People are tired of moving from release to release, being forced
to start again and again”(Mr. Munzo, ENAP,Chile)
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 68
How to deal with objections?
Objection: we paid a lot of money for our SAP solution
Why should I invest again?
How will SAP help us to migrate to ESA? ?How to answer?
We want to protect the investments of our customers.
We make the architecture change in such a way that it runs off not like a migration, but like a normal release change.
We will proceed in several steps: in the context of our well-known release politics the customer receives not only economical advancements, but also the technical innovations of the integration platform SAP NetWeaver.
SAP recognizes the current value of past SAP R/3 software investments through favorable SAP pricing program available for a limited time.
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 69
How to deal with objections?
Objection: NetWeaver makes us dependent on SAP
If we change to SAP NetWeaver, it certainly means a higher dependence on our Software-Supplier ?
How to answer?
In the opposite: we offer customer the possibility of developing extensions for the SAP surrounding field with Microsoft or IBM technology.
The integration of non-SAP solutions is a lot easier.
A customer, who uses our ERP system, mySAP CRM and SAP NetWeaver can also exchange it with the product from a competitor.
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 70
How to deal with objections?
Objection: Implementation takes too much time
We don´t have the time to go through the whole implementation process! ?
How to answer?
Analysis of upgrade projects has shown that project duration is on average about 3 months in duration with a minimized downtime of 6 hours.
Our various Upgrading Services help to run the Upgrade smoothly.
“The business content provided with SAP BI allows a fast track implementation. A few weeks after installation on the test server
we had the first report in our hands. That was extremely motivating for the complete team.”
Peter Bartl, Project Manager for Introduction of SAP BI, Alois Pöttinger Maschinenfabrik GmbH
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 71
How to deal with objections?
Objection: we wait till ESA is really being introduced
We don´t want to upgrade now and the to do the whole thing again in 2007! ?
How to answer?
It is important that you already today set the right course in the direction of Enterprise Services Architecture.
Since with Enterprise Services, existing and new processes can be depicted faster than was formerly the case, they provide the enterprise with room for innovations and growth, but you need to prepare your processes step-by-step.
SAP has defined a time-plan for the realization of the Enterprise Services Architecture. Until 2007, all solutions – including mySAP ERP – will be Enterprise-Services-capable.
Through mySAP ERP you already currently profit in many aspects from SAP NetWeaver.
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 72
?How to deal with objections?
Objection: why do I need mySAP ERP
Even if there are new and enhanced features – I don´t see the value for me!
How to answer?
Clients perceive mySAP ERP value potential most frequently in Analytics, Reporting, Business Planning & Consolidation, enhanced HCM capabilities (e-Learning, e-Recruiting, ..), Employee & Manager Self Services, as well as in Procurement.
Additionally, SAP NetWeaver as the integration platform for mySAP ERP delivers overwhelming value potentials through integrating processes, data and people, i.e. with SAP BW, SAP XI, SAP MDM and SAP EP.
SAP helps in identifying client specific value with the Quick Check and other services for mySAP ERP.
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 73
?How to deal with objections?
Objection: mySAP ERP is too expensive and complex!
I need to many changes on my current IT landscape
IT operation cost will increase
How to answer?
mySAP ERP is not complex! The flexible and integrated architecture of mySAP ERP powered by SAP NetWeaver enables best support and lowest costs.
mySAP ERP is not expensive! We are convinced that no competitor can deliver comparable capabilities for less.
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 75
Frequently Asked Questions on technical aspects
Can SAP ECC and SAP BW be deployed on one WebAS in productive environments?
ERP and BI functionality can be deployed on a single Web Application Server in productive environments, provided that a proper sizing for all components has been made. Please also refer to the alias /PAM in SAP Service Marketplace for support information of a common database and operating system platform.
What Sizing guideline for SAP BW and mySAP ERP on one WebAS is recommended by SAP?
SAP recommends an additive sizing. For each component involved in the system stack a separate sizing is required using the respective sizing procedure. The total size of a server which can accommodate all components is the sum of the individual sizing results. This applies toSAPSMemoryDisk space
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 76
Frequently Asked Questions on technical aspects
Is there a recommended hardware landscape for running mySAP ERP and SAP BW in one system, or are there any hardware landscape limitations?
There is a very broad spectrum of possible system landscapes, ranging from a single server to separate servers for different purposes. Sample recommendations for SAP NetWeaver can be found in the SAP NetWeaver’04 Master Guide.
Is there a recommended transition path for
Merging mySAP ERP and SAP BW systems
Separating mySAP ERP and SAP BW systems?
As of now, there is no recommended standard transition path. For the time being, such transitions need specific project support
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 77
Frequently Asked Questions on technical aspects
Can SAP ECC and SAP BW run in the same client?
No. Currently SAP BW needs a separate client.
Can a single instance of mySAP ERP support multiple industries?
It depends on the number of countries, industries and languages supported, etc.
We support many of the largest global conglomerates.
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 78
Frequently Asked Questions on technical aspects
Can multiple SAP ECC clients use the same SAP BW client?
Yes. Same as with a separate SAP BW system. There are SAP customers running such multi tenancy scenarios
How do we handle customer requests to run SAP ECC and SAP BW in one system?
We will handle such requests on a project basis.
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 79
Ten Good Reasons to Sell mySAP ERP
1
2
3
4
5
6
7
8
9
10
mySAP ERP - prepares your customers for growth
mySAP ERP - is exactly what the customer needs
mySAP ERP - is the key to additional business
mySAP ERP - offers a unique solution from one supplier
mySAP ERP - wins new customers
mySAP ERP - leverages existing IT investments
mySAP ERP - the market leader with over 34 years experience
mySAP ERP - helps to decrease IT/maintenance costs
mySAP ERP - be better informed about your business
mySAP ERP - create an integrated business environment
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 80
Summary
Customer Pain PointsCustomer Pain Points Value PropositionValue Proposition Proof PointsProof Points
Better support for mgt. decisions
Better support for mgt. decisions
mySAP ERP delivers real-time business information (internal and external) across all business activities and is provides insight to all managers in the level of detail required, resulting in streamlined internal and external reporting and improved decision making.
mySAP ERP delivers real-time business information (internal and external) across all business activities and is provides insight to all managers in the level of detail required, resulting in streamlined internal and external reporting and improved decision making.
Customer Success Story China Telecom
Customer Success Story China Telecom
Easy adaption to changeEasy adaption to change SAP NetWeaver allows companies to flexibly and quickly deploy, execute, monitor, and refine business processes and strategies – including outsourcing of non strategic assets, centralization or decentralization, consolidation, and IT integration following mergers and acquisitions.
SAP NetWeaver allows companies to flexibly and quickly deploy, execute, monitor, and refine business processes and strategies – including outsourcing of non strategic assets, centralization or decentralization, consolidation, and IT integration following mergers and acquisitions.
Customer Success Story
dynaRENT
Customer Success Story
dynaRENT
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 81
Better usabilityBetter usability mySAP ERP enhances manager and employee productivity by providing role-based usability and self-services that deliver business processes to the desktops of employees, managers, and professionals based on their needs, expectations, and goals.
mySAP ERP enhances manager and employee productivity by providing role-based usability and self-services that deliver business processes to the desktops of employees, managers, and professionals based on their needs, expectations, and goals.
Summary
Customer Pain PointsCustomer Pain Points Value PropositionValue Proposition Proof PointsProof Points
Customer Success Story Aventis
More than 10 million employees worldwide actively use the management tools and employee self-service functions in mySAP ERP.
Customer Success Story Aventis
More than 10 million employees worldwide actively use the management tools and employee self-service functions in mySAP ERP.
Extension of processes Extension of processes mySAP ERP provides unrivaled, comprehensive end-to-end logistics for complete business process cycles. Enhanced capabilities allow efficient interaction with business partners and support end-to-end operations.
mySAP ERP provides unrivaled, comprehensive end-to-end logistics for complete business process cycles. Enhanced capabilities allow efficient interaction with business partners and support end-to-end operations.
Customer Success Story Pöttinger
Customer Success Story Pöttinger
SAP AG 2005, GSM/ERP: Why move from SAP R/3 to mySAP ERP? / 82
Performance / Process Optimization
Performance / Process Optimization
mySAP ERP helps customers to serve their markets and customers more efficiently and effectively and achieve operational excellence. Enhanced capabilities are reducing operational costs.
mySAP ERP helps customers to serve their markets and customers more efficiently and effectively and achieve operational excellence. Enhanced capabilities are reducing operational costs.
Summary
Customer Pain PointsCustomer Pain Points Value PropositionValue Proposition Proof PointsProof Points
Customer Success Story Pöttinger
Customer Success Story Pöttinger
More IT efficiency at less cost
More IT efficiency at less cost
mySAP ERP helps customers consolidating their IT landscape and leveraging existing assets. SAP NetWeaver and content ready provided by mySAP ERP reduces development cost.
mySAP ERP helps customers consolidating their IT landscape and leveraging existing assets. SAP NetWeaver and content ready provided by mySAP ERP reduces development cost.
Customer Success Story Reynolds & Reynolds
Customer Success Story Reynolds & Reynolds
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