Transcript SAP World Tour 2009 See Your Way Clear Asia Leadership

Clarity in the New Reality
Sajjad Syed
Head
SAP Pakistan
November 12, 2009
Pre 2008 Reasons for IT Enabled Systems

Holistic (Integrated) view of business

Cost Control Specially in Inventory and Supply Chain

Adoption of Industry Best Practices

Managing growth and geographically dispersed entities.

Top management to focus on strategy rather than implementing controls.
Then
Reality Changed
as
we faced the biggest global Economic
downturn in the history of mankind
Today’s New Reality & Challenges
The context in which businesses operate today
Business Network
Transformation
Economic
Volatility
Sustainability
Rising Consumer
Power
© SAP 2009 / Page 4
Proliferation of
Global Regulation
How do you lead through challenging times?
You need clarity and transparency to act decisively
CUT BACK
38%
38%
74%
74%
Will reduce capital
investments
Will reduce operating
costs
Sources: McKinsey Economic Conditions Snapshot, Feb. 2009
© SAP 2009 / Page 5
60%
60%
Had layoffs in 2008,
>50% plan layoffs in 2009
Source: CFO magazine global CFO survey Feb 2009
How do you lead through challenging times?
You need clarity and transparency to act decisively
INNOVATE
45%
45%
Will increase
productivity
40%
40%
Will change their
enterprise model
to be more
collaborative
Source: IBM global CEO study
‘the enterprise of the
future’ 2008
37%
37%
Will restructure
Sources: McKinsey Economic Conditions Snapshot, Feb. 2009
© SAP 2009 / Page 6
36%
36%
Will introduce new
Products/services
To gain market share
New ways to build value – even in a downturn
Align strategy and execution to enable long term growth
Focus your business
network on the end customer
“
Reduce costs and risk,
differentiate brand
It’s important to innovate through a recession to sustain
new brands and products and offer the customer a little more value.
A.G. Lafley
Chairman, Procter & Gamble
© SAP 2009 / Page 7
Become “Clear” to Drive Success
Instill accountability, agility, and customer centricity into your
organization
Transparent and
accountable
Lean and agile
Collaborative &
customer-centric
© SAP 2009 / Page 8
Demand clear answers
Choose vendors that can support your business
How can your company help us to develop
effective business strategies?
Chief Financial Officer
How can your company help us to navigate
through economic challenges?
Line of Business Manager
How does your company enable us to support
the quickly changing needs of the business?
Chief Information Officer
© SAP 2009 / Page 9
Today’s challenges require strategic agility
Enable insight, efficiency, and flexibility
How can your company help us to develop
effective business strategies?
INSIGHT
INSIGHT
How can your company help us to navigate
through economic challenges?
EFFICIENCY
EFFICIENCY
How does your company enable us to support
the quickly changing needs of the business?
FLEXIBILITY
FLEXIBILITY
© SAP 2009 / Page 10
Business strategies evolve
…but silos create a gap between strategy and execution
STRATEGY
EXECUTION
Business Users
Sales
Call Center
Shipping
Functional silos and non-integrated systems
reduce agility and undermine growth
© SAP 2009 / Page 11
The Economic Uncertainty Affects
Businesses of All Sizes
Current Economic Environment
Translating into…
 Lack of access to funds
 Higher cost of capital
 Reduced cash flow
 Rising inflation risks
 High market volatility
 Wave of consolidations
Slowing demand
(spending cut-back, customers
postponing purchases)
Rising costs
(inflation, energy/commodity
prices, healthcare costs…)
Measurable Impact
on Your Business
Revenue, Income
COGS, Margins
 Government re-regulation
 Declining consumer optimism
Source:
-NFIB Small Business Economic Trends, October 2008
-The Conference Board Mid-Market CEO Challenge, 2007
-Collateral Damage, The Boston Consulting Group, Oct 2008
© SAP 2009 / Page 14
Reduced credit
(tougher lending standards,
declining loan/line of credits)
Cash flow, Liquidity
Technology Can Be A Strategic Tool To
Help Weather the Economy
Technology Can Help Your Customers Now
Business Measures to Take
1. Slash operating expenses
 Make decisions based on hard facts
Make smarter fact-based decisions using business intelligence,
reduce guesstimates and risky blunders
2. Improve cash flow & liquidity
3. Optimize working capital & debt
4. Act now on efficiency initiatives
5. Focus on customer retention
6. Diversify product portfolio
7. Go after less-affected markets
8. Increase smart marketing
9. Invest in employee development
10.Engage in selective M&A
 Streamline processes, cut operating costs
Improve efficiency and profitability by using an integrated
system that eliminates errors & duplications
 Get accurate, precise control on cash flow
Keep receivables in check, inventory low and cash flowing
 Proactively respond to customer needs faster
Identify emerging trends / customer needs, focus on your most
profitable customers, turn dissatisfied customers around
 Be best positioned for the rebound
With careful IT investments, you can position your company for
recovery and achieve sustainable growth.
© SAP 2009 / Page 15
SIX PRIORITIES FOR TODAY’S
ECONOMIC CLIMATE
1. Manage Cash
2. Run Lean Operations
3. Drive Compliance Activities
4. Get Closer to Your Best Customers
5. Retain Your Top Talent
6. Protect and Nurture Your Brand
.
© SAP 2009 / Page 16
Companies that have Benefited from Best
Practices
Trading
Industries
Consumer
Industries
Financial
Services
85% of the
Process
Manufacturing
Forbes 500
run SAP BP
Discrete
Manufacturing
© SAP 2009 / Page 17
Services
Public
Services
Agility, Effectiveness & Insight…
Pakistani Corporations partnering with SAP
Consumer Products
FSI/ Processed Industry
Manufacturing
Oil & Gas
Life Science / Public Sector
© SAP 2009 / Page 18
Path to Clarity
Steps towards becoming a clear enterprise
1. Choose the IT Product that can truly
support your business strategies.
2. Develop a plan to build strategic value.
3. Start small but think big.
4. Engage key partners in your business
network. to build stronger business
networks.
5. Close the strategy-to-execution gap
and measure the benefits.
© SAP 2009 / Page 19
Thank you!
© SAP 2009 / Page 21