Transcript Hosted by SAP Future Directions: 2003 and Beyond Joshua Greenbaum, Principal Enterprise Applications Consulting www.eaconsult.com.

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SAP Future Directions:
2003 and Beyond
Joshua Greenbaum, Principal
Enterprise Applications Consulting
www.eaconsult.com
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Agenda
 SAP’s World View and The Post-Hasso Era
 Enterprise Services Architectures and NetWeaver
 xApps Update
 Master Data Management
 Advanced SAP Anatomy: Business Suite & MySAP
ERP
 Conclusion
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SAP’s World View
 Technology Is Evolving to Support a Services
Architecture
 Existing Applications Become The Infrastructure
for Next Generation Applications, SAP’s
Applications Must Become Services
 Selling and Servicing the Installed Base
 Seeding an xApp Market and Becoming A
Technology Leader
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The Post-Hasso Era
 Increasing Corp. Governance Needed from
Supervisory Board
 Hasso May Still Be Involved in Key Accounts,
Technology Decisions
 Dichotomy between Growth in a Mature Market
and Maintaining Technology Innovation
 Current Management Board Embodies This Split
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Enterprise Services Architecture:
Evolutionary View
User Logic
User Logic
User Logic
Bus. Process
Bus. Process
Bus. Process
Application
Application
Application
Mainframe
Client/Server
Services Based
Architecture
Source: SAP
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Inside ESA
 Service as Unique Piece of Business Logic or Process or
Data That (Ideally) Uses XML or SOAP Interfaces
 New Level of Abstraction for Business Logic
 Deploy Anywhere: Portal, Wireless, “branch process”
 The Staging Ground for Collaborative, Web-based
Applications
 Maintain Value of Existing Applications and Services
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SAP’s ESA Offering: NetWeaver
People Integration
Portal
Collaboration
Information Integration
Business
Intelligence
Knowledge
Management
Master Data Management
Process Integration
Integration
Broker
Business Process
Management
Life Cycle Management
Composite Application Framework
Multi-Channel Access
Application Platform
J2EE
ABAP
andOS
OS Abstraction
Abstraction
DBDBand
…
Source: SAP
.NET
WebSphere
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Inside NetWeaver
 Packaging: Bundling SAP’s Existing Technology
 Technology Platform Challenger (re IBM, Microsoft,
etc.) with Careful Attention to Compatibility
 Development Platform for xApps
 Seeding a Market for Third Party xApps and Internally
Developed xApps (Java or ABAP-based)
 Technical Requirements: Run WAS and Portal
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SAP Technology Directions:
Implications & Recommendations
 ESA is the Future, But is NetWeaver the Way to
Go?
 Do You Build Composite Apps or Buy Them? (IBM
and Microsoft Are Pushing The Build Side)
 Challenge: xApps Must Not Require Large
Integration Budgets
 Regardless, The Next Generation Applications Are
Composite Applications
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SAP NetWeaver Challenges
 XML and SOAP Interfaces For Existing Services
 XML as Interpreted Language Means Throughput
Issues
 WAS and Portal Requirements Limiting?
 Needs a Major Developer Push
 ESA Platform Competition Will Heat Up
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xApps: Basics
 Any Application that Uses Data and Business Processes From
Other Applications and Data Sources to Provide Value-added
Functionality Above and Beyond Existing Applications and
Infrastructure
 Run on Top of NetWeaver, Leverage the R/3 Apps
 SAP’s Market Leadership Position
 AKA Composite Applications: The Future of Enterprise
Applications
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xApp Deployment Architecture
Source: SAP
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xApps: Examples
 xRPM: Resource and Program Management (SAP). Manage
Project Portfolios, Execute and Staff Projects.
 xVIP: Visual Information for Plants (NRX). Manage plant
operations, maintenance, and management. Links SAP ERP to NRX’s
Asset Content Management
 xSPM: Service Performance Management (Digital Fuel).
Manage Third Party Service Providers. Link SAP and non-SAP
Processes to xSPM’s Service Flow Architecture
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xApps: Challenges
 xApps Orthodoxy: What to Do About Other Composite Apps?
 NetWeaver Orthodoxy: Can xApps be Deployed on NonNetWeaver Platforms?
 Needed: More xApps (Market Legitimacy Demands It)
 Development Platform/SDK Needed
 Integration/Adapters: More Needed
 Third Party Certification Needed
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Master Data Management
 The Universal Data Model: Repository of
Master Data Definitions
 Harmonize All the Data Sources: One
Version of the Truth
 Long Term Ambitions vs. Short Term
Deliverables
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MDM Long Term Vision
 One Version of the Truth
• Single Source for All Data: SAP and non-SAP
• Single Administrative Site for All Data Management
• Repository of Master Data Objects That Define Specific
Business Practices: Business-Specific Units of Measure
 Connect Heterogeneous Environments
• Linking Applications, Maintaining Consistent Data Among
Different Data Sources/Applications
 Control Corporate Data
• Central Management and Process Control For All Systems
(Internal and External)
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MDM Short Term Vision
 Synchronize Data in SAP Environments First,
Ensure Data Quality
 Multi-instance, Multi-revision Environments
 Limited Work with Customers for Vertical
“Universal Data Models”
 Version 1.0 Data Models: Product, Business
Partner (Customer, Vendor, Supplier),
Organizations Structure, BOM
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MDM Architecture
Source: SAP
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MDM Components
 Master Data Objects: Define the Business Objects
• Product Master
• Business Partner
• Product Structure
• Organizational Structure
 Data Services: Manage the CMDM Environment
• Data Management Services
• Change Management
• Distribution
 Others
• Content Integration, Data Staging (ODS), Adapters, Etc.
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MDM Technology
 Runs on NetWeaver
 Workflow is SAP-Only
 BW Can Be Used, But Master Data in CMDM
 Database Independent
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MDM Q3 Deliverables
 Master Data Server (Object Definition
and Deployment)
 Content Integration
 Exchange
 Adapters
 MDM Database
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MDM: What’s the Value?
 De-duping
• Huge Cost In M&A and Dynamic Businesses
• Non-Management Costs Can Be Even Larger:
Accuracy in Operations, Support and Service
•
SAP ROI Analysis: $4 million in Savings
 Lower Overall Integration Costs
 Consolidation and Collaboration
• Economies of Scale for Data Can Match the
Economies of Scale in the Rest of the Enterprise
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MDM: What’s the Catch?
 Best for R/3 Centric to Start
 Master Data Definitions Require A Harmonization
Process FIRST (Remember BPR?)
 Adapters, Adapters, Adapters
 Horizontal To Start, But Better As a Vertical
 The More You Do, the More You Integrate
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MDM: How To Get Ready
 Think Master Data Objects
 Think Process First: What are Real-world
Benefits
 Don’t Integrate Everything (Remember
the Data Warehouse Overruns)
 Get To Know NetWeaver
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Advanced SAP Anatomy
 MySAP ERP: Simplify the Buy
 What Can You Buy from SAP:
•
•
•
•
Business Suite: Everything
MySAP ERP: Core Business Functions
CRM/SCM/PLM/SRM as Standalones
Specific Engines: APO, CRM, for ex.
 NetWeaver Everywhere
 xApps Separate Line Item
mySAP
SRM
mySAP
SCM
mySAP
FIN
mySAP
HR
mySAP
PLM
mySAP
CRM
SAP Web Application Server
People Integration: SAP Enterprise Portal, Collaboration, …
Information Integration: BI, KM, MDM, ...
Process Integration: XI, Business Process Mgmt.
SAP NetWeavermySAP Solutions
mySAP Business Suite
mySAP Business Suite
mySAP
SRM
mySAP
SCM
mySAP
FIN
Source: SAP
mySAP
SCM
mySAP
FIN
mySAP
HR
Inventory &
Production
Operations
mySAP
CRM
Information Integration: BI, KM, MDM, ...
Process Integration: XI, Business Process Mgmt.
mySAP
PLM
mySAP
CRM
Maintenance
& Quality
Sales Order
Mgmt
Corp. Services
Purchase
Order Mgmt
mySAP
PLM
SAP Web Application Server
People Integration: SAP Enterprise Portal, Collaboration, …
mySAP ERP
mySAP
SRM
mySAP
HR
SAP R/3 Enterprise
mySAP Business Suite
SAP NetWeaver mySAP Solutions
SAP NetWeavermySAP Solutions
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SAP Web Application Server
People Integration: SAP Enterprise Portal, Collaboration, …
SAP NetWeaver
Information Integration: BI, KM, MDM, ...
Process Integration: XI, Business Process Mgmt.
mySAP Business Suite
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mySAP PLM
Purchase Order
Management
mySAP
SRM
mySAP ERP
Financials
Human Resources
Corporate Services
Operations
Sales Order &
Delivery Management
Maintenance & Quality
Inventory & Production
mySAP SCM
SAP NETWEAVER
mySAP
CRM
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What Should Existing Customers
Do?
 Business Suite Customer
• You’re Done
 R/3 Enterprise Customer
• Upgrade to MySAP ERP, Unless You Need More
 APO Only (New Dimension Product)
• Business Suite? MySAP ERP? SCM?
• Pricing Favors Business Suite
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Conclusion: Keep Running in Place
 SAP Management Changes: No Major Change
 ESA: Change Your Thinking, Not Your Technology
 xApps: Change How You View Apps and
Infrastructures
 MDM: Change How You Work with Corporate Data
 MySAP ERP: Change How You Buy SAP Apps