ERP Systems SOA and IT Architecture SAP s Vision

ERP Systems, SOA, and IT Architecture. SAP's Vision & Strategy to achieve flexible and agile business systems April, 2007

About SAP § The world’s leading enterprise application company The Enterprise SOA value proposition for SAP § Flexible systems at lowest cost Enterprise SOA in Action § Learn & Discover, Compose, Deploy Summary and Q&A

Performance over last 10 years A$14. 9 bn R&D A$2. 34 bn ã SAP AG 2006, 3

2006 Outperformed the market again ã SAP AG 2006, 4

SAP’s product portfolio ã SAP AG 2006, 5

About SAP § The world’s leading enterprise application company The Enterprise SOA value proposition for SAP § Flexible and agile systems, at lowest cost, and highest quality Enterprise SOA in Action § Learn & Discover, Compose, Deploy Enterprise Services Enablement of SAP Business Suite § Concepts, Methodology, Governance Summary and Q&A

Geoffrey Moore’s Core/Context Model CONTEXT CORE Focus: Productivity STANDARDIZATION Focus: Differentiation INNOVATION Mission Critical Activities Enabling INVENT Activities INVENTION ã SAP AG 2006, 7 Courtesy to G. Moore’s “Living on the fault line” OUT-TASK SCALE CONS. RETIRE COMMODITIZATION

Geoffrey Moore’s Core/Context Model Core Context Process creates differentiation that wins customers All other processes Mission Critical Process shortfall creates serious and immediate risk High Risk Enabling All other processes Reward Resources get tied up in mission-critical context ã SAP AG 2006, 8

Geoffrey Moore’s Core/Context Model Core Context Process creates differentiation that wins customers All other processes Process shortfall creates serious and immediate risk Best-of-Breed Packaged Solutions Enabling Rapid Prototype Outsourced Mission Critical All other processes High Risk Reward Packaged solutions take care of Context processes ã SAP AG 2006, 9

What is happening in business that drives the software business • Rapid business model change imposes need for rapid delivery of new capability • Hardwired business processes are great for stable “nondifferentiated” business process, but suicide for innovators • Commoditisation of technology layers leads to low cost entry and industrialisation IMPLIES • Forced redesign to allow rapid innovation of software while keeping quality and stability of context processes • Decoupled process model to allow agility • Agility to move from core to context at the pace of business • Agility to rapidly remodel processes without restrictions ã SAP AG 2006, 10

Enterprise Services Enable the Agile Enterprise Build vs. Buy - Adding the Third Option Build Buy Custom Code Home Grown Packaged Application Home Grown CRM ERP . . . Compose Buy Build Home Grown ã SAP AG 2006, 11 Home Grown CRM ERP . . .

Key Enterprise SOA development initiatives • Make the entire product base “service enabled” • Ensure usability by the wider “non-SAP” community • Deliver beyond SOA to include logical interconnectivity not just technical or semantic interoperability • Provide a technology platform and process composition environment for SAP development, and our customers, but keep it open for the wider community • Create logical Enterprise Services packages as working starting points for composites • Accelerate adoption through the Software Developer Network community • Establish Industry focused Value Networks ã SAP AG 2006, 12

my. SAP ERP 2005 Powered by SAP Net. Weaver my. SAP ERP 2005 = Stable Core for Continuous Innovation n Enterprise service-enabled and open standards-based n Dramatic user experience improvements n 300+ industry-specific functional enhancements since my. SAP ERP 2004 2005 2006 2007 2008 2009 2010 Enhancement Packages my. SAP ERP 2005 Next Release SAP Net. Weaver INNOVATE AT YOUR CHOSEN PACE ã SAP AG 2006, 13 n Enterprise SOA reshapes software delivery and consumption n my. SAP ERP 2005 remains core for the next 5 years n Continuous stream of innovation through enhancement packages

Introducing Enterprise Services Packages Make the value of Enterprise SOA tangible “Connecting the dots" between enterprise services Business Scenarios & Interface Definitions Customer Collaborative Wiki SAP Partner Services Built-in Governance ã SAP AG 2006, 14 Implemented Services & Sample Usage

Introducing Enterprise Services Packages Make the value of Enterprise SOA tangible Enterprise Services Packages Each Enterprise Services Package includes everything customers needs to know to get the business capability up and running with the package n Out of the box service-enablement of my. SAP ERP 2005 based on enterprise services n The definition of these enterprise services in the enterprise service repository n Consuming applications n Links to applications n Sample code n Best practices n Grouped by main business scenarios n Deliver high-impact business capability n Provide “quick wins” for the business ã SAP AG 2006, 15 n Composites n Content and advice provided by SAP, its partners, and other customers, delivered via social medial technology (Wiki) n Processes n Enterprise services n Quick deployment

Co-Innovation with partners and customers ES Packages can be extended and elaborated over time Enterprise Services Packages Customer / Partner Groups n Industry Value Networks n SAP Partners n ASUG/GLP n Other n ES Packages are coinnovated with the help of ES Community n Common platform and standards n Address industry-specific challenges Enterprise Services Definition Groups ã SAP AG 2006, 16

5 Industry Value Networks Industry Value Network Focus Areas Chemicals n n n Supply Chain Planning & Execution Manufacturing Planning & Execution Sales & Marketing Food & Safety Compliance Industry-specific Food & Bev. Solutions High Tech n n Manufacturing Visibility & Control Product Compliance Price Management Service Parts Management Retail Store & Multi-Channel n Store Operations e. g. POS n Device Conectivity e. g. Handheld n Customer Intimacy n Customer Analytics Public Sector 17 Intellectual Property Management Process & Asset Optimization Price & Performance Management Compliance Management Consumer Products ã SAP AG 2006, n n Tax & Revenue Management n Collection Management n Customs Management n Rules & Regulations n Tax Analytics

Delivering the Value of Enterprise SOA About SAP § The world’s leading enterprise company packages § Enhancement Packages & application services Enterprise SOA in Action The Enterprise SOA value proposition for SAP § Learn & and agile systems, at. Deploy cost, and highest quality § Flexible Discover, Compose, lowest Enterprise Services Enablement of my. SAP Business Suite Enterprise SOA in Action § Concepts, Methodology, Governance § Learn & Discover, Compose, Deploy Summary and Q&A

The Net. Weaver Technology Fridge ã SAP AG 2006, 19

Design-time environment for UI Modeling & Configuration n Targets the “Business Expert” n Significantly reduce development effort n Model-to-Code n Easy adaption ã SAP AG 2006, 22 Content Complexity Model-to-Code: Content Development by Business Experts SAP Net. Weaver Developer Studio Visual Composer Portal Content Studio Required Skills

Enterprise Services Workplace Access to enterprise services Browse n Enterprise Services n Collaborate via SDN n ES packages Test-drive n Consume enterprise services n my. SAP Business Suite 2005 n Enterprise Service Repository Use n Easy access to implement required pieces www. sdn. sap. com Enterprise SOA ES Workplace ã SAP AG 2006, 24

Delivering the Value of Enterprise SOA § Introduction to enterprise services packages Enterprise SOA in Action – Demo § Learn & Discover, Compose, Deploy Enterprise Services Enablement of my. SAP Business Suite § Concepts, Methodology, Governance Summary

Transforming Organizations Setup, Roles and Skills – Break the Silos n From technology driven application development to business driven IT services n From technology skills based to business knowledge and communication n From technology partners to innovation partners Disruptive Innovators Business Process Landscape Composers Repository Keepers IT Platform ã SAP AG 2006, 27 Consolidators

Summary SAP Delivers on enterprise SOA n From getting started to deployment n Simplified access via SDN/ES Workplace n Collaborative, open and available today SAP delivers customer value n Common language between IT and business in ESR n Direct consumption of productized enterprise services n Innovation without disruption ã SAP AG 2006, 28

Questions ?

SAP Net. Weaver Is Open Driving TCO Reduction Through Industry Standards W 3 C OASIS JCP WS-I Eclipse. org my. SQL OMG … ã SAP AG 2006, 30 SAP Net. Weaver™ XML Encr. & Sign. , DSIG, SAML … Orgs Standards Supported (Selection) PEOPLE INTEGRATION Multi channel access Portal Collaboration JAAS, WSRP, Personal Java INFORMATION INTEGRATION Knowledge Mgmt Business Intelligence Master Data Mgmt PROCESS INTEGRATION Integration Broker Business Process Mgmt ICE , Web. Dav , XML/A, JMI, XMI, CWM, ODBO BPEL, CIDX, Rosetta. Net, CPPA APPLICATION PLATFORM J 2 EE HTTP, ABAP DB and OS Abstraction XML, SMTP, J 2 EE, WSDL, SOAP, UDDI, XSLT

What makes a Service an Enterprise Service? Readability n Compare it to a book – Global data type – the letters available to build meaningful words – Messages and service cut – the sentences have the same grammar – Taxonomies of Process Components, Business Objects, Interfaces - the chapters in the book have the same structure Reuse n The reuse of services makes up the value of the ESR ã SAP AG 2006, 31

Global Data Types - Building Blocks for Interfaces 1 Global Data Type (SAP ) 1. . * Example: Price : 1. . * 1 Core Data Type (CCTS ) Example: Currency 1. . * 1 Primitive Data Type (XSD ) “ Example: float, string, token, binary Global Data Types are SAP-wide defined data types with business content. They are defined in accordance to industry standards and offer customers a way to use one common data structure. Characteristics: n Standard (ISO 15000 -5 and UN/CEFACT CCTS 1) n Defined in Enterprise Services Repository n SAP-wide approved with reference to the Governance Process 2 n Semantic building blocks for interfaces (reuse) ã SAP AG 2006, 32

Interoperability: Types What is the order status? Purchase Order 明天运 输。 Service Consumer Service Provider Semantical / Logical Interoperability Same Understanding between Service Consumer and Service Provider, e. g. Address or Name. Technical Interoperability - unified Transport Protocols (e. g. TCP/IP) - security standards (e. g. Web Services Security) - formats for structured communication (e. g. XML, SOAP…) ã SAP AG 2006, 33