The SME Solution from SAP

The SME Solution from SAP

Application Service Provision for Small and Mid Size Companies Presentation to BCS North London Branch 21 February 2001 Paul Viney ASP Operations Manager SAP UK Ltd [email protected] Tel: 020 89 17 63 59 ASP for SME Who is SAP? The SME Sector - what are the challenges mySAP Hosted Solutions - SAPs ASP Initiative SAPs Solution Case studies and ASP Experiences SAP AG 2001, Title of Presentation, Speaker Name 2

SAP Today SAP AG in 2000 revenues: Euro 6.26 billion 3rd largest independent software vendor in the world Market leader in inter-enterprise software solutions 13,500+ customers in 120+ countries 36,000+ installations 10+ million users Focused on users in all enterprises regardless of size Increased customer satisfaction and stronger customer loyalty Heavy investment into SAPs worldwide business community 24,100+ SAP employees (as per December 2000) SAP AG 2001, Title of Presentation, Speaker Name 3 SAP Evolution of Business Enterprise Resource Planning

Cost reduction and efficiency through integration of business processes Early 90s SAP AG 2001, Title of Presentation, Speaker Name 4 Inter-Enterprise Co-operation Improved effectiveness through cooperation along the supply chain Mid 90s e-Community Collaboration Value creation through

collaboration within business communities New Millenium ASP for SME Who is SAP? The SME Sector - what are the challenges mySAP Hosted Solutions - SAPs ASP Initiative SAPs Solution Case studies and ASP Experiences SAP AG 2001, Title of Presentation, Speaker Name 5 Challenges facing the SME Sector Lack of available IT resource for business systems projects now and in the future recruitment retention

Funding of IT projects Cost of capital asset purchase and its effect on the company Access to world class integrated business applications I may be small but I still need a system that gives me what I need What happens when I grow my company How scaleable is the solution System security is an issue - I dont have the skills in-house Backups System access Support Disaster recovery planning SAP AG 2001, Title of Presentation, Speaker Name 6

ASP for SME Who is SAP? The SME Sector - what are the challenges mySAP Hosted Solutions - SAPs ASP Initiative SAPs Solution Case studies and ASP Experiences SAP AG 2001, Title of Presentation, Speaker Name 7 mySAP Hosted Solutions Application Hosting Application Service Provision Application Management One Step Business

Hosted Solutions Marketplace Marketplace Hosting SAP AG 2001, Title of Presentation, Speaker Name 8 Workplace Business Applications My world at my desktop For collaborative commerce

mySAP Hosted Solutions - definitions Application Service Provision ASP combines software, implementation, infrastructure, service and support, to create solutions that are quickly implementable and reusable. The AS Provider also manages the entire customer relationship. One to many model, with minimal custom configuration, delivered as a service and priced on a rental basis. Customer does not own the license. Application Hosting Applications run and maintained in a central processing facility when the customer requires configuration beyond the scope of ASP offering. License owned by customer. Application Management Providing post-implementation support services either on-site or from a remote location. MarketPlace Hosting

A service platform for business communities of individual partners, customers, and vendors to perform business-to-business processes and collaboration, as well as business-to-consumer transactions. SAP AG 2001, Title of Presentation, Speaker Name 9 mySAP Hosted Solutions Enables hosting solutions to our Customers and Partners Rental model for software delivery to meet the needs of an ASP solution SAP Hosting can offer hosting services direct to customers SAPHosting supports, enables and certifies partners Preconfigured solutions Training European ASPs include:

BT, Deutsche Telecom, iFusion, Planet.com SAP AG 2001, Title of Presentation, Speaker Name 10 ASP for SME Who is SAP? The SME Sector - what are the challenges mySAP Hosted Solutions - SAPs ASP Initiative SAPs ASP Solution - Connect & Go Case studies and ASP Experiences SAP AG 2001, Title of Presentation, Speaker Name 11 Connect and Go ASP - benefits Rapid implementation Solution is pre-configured to support the processes of the smaller and mid size company or business unit Typical time to go live 2 weeks

to 2 months Cost savings start at go live faster return on investment. SAP AG 2001, Title of Presentation, Speaker Name 12 Connect and Go ASP - benefits Future-proof As your company grows, so your solution grows with you - proven solution 2 - 2000 users on the same platform Software upgrades / legal changes delivered as part of the ASP / hosting service Customer still benefits from SAPs continued software development SAP AG 2001, Title of Presentation, Speaker Name 13

Connect and Go ASP - benefits You manage the I, the ASP / hosting partner manages the T Hardware redundancy not a customer issue System management in the hands of experts Customers IT staff free to focus on strategic information management SAP AG 2001, Title of Presentation, Speaker Name 14 ASP - Deployment Cost model Customer In House Software Hardware Support Licence Buy Buy

In-house Implementation Comment Outsourced Buy Buy In-house / Partner Outsourced Outsourced Hosted Buy Rented Outsourced Outsourced

ASP Rented Rented Rented Delivered by ASP High initial capital spend. Effects ROCE High initial capital spend. Effects ROCE Software capitalised. Hardware rented. Cost amortised over rental period. Cost is expense item

Total TotalCumulative CumulativeCost Costover overtime time Cost Cost 160 160 140 140 120 120 100 100 80 80 60

60 InInHouse House Outsource Outsource Hosted Hosted ASP ASP 40 40 20 20 00 Time Time SAP AG 2001, Title of Presentation, Speaker Name 15

ASP for SME Who is SAP? The SME Sector - what are the challenges mySAP Hosted Solutions - SAPs ASP Initiative SAPs Solution Case studies and ASP Experiences SAP AG 2001, Title of Presentation, Speaker Name 16 Maritime Cargo Processing plc, Great Britain Leave System Management in the Hands of the Experts Maritime Cargo Processing was set up to manage, market and develop the advanced port community system known as the Felixstowe Cargo Processing System (FCPS). FCPS was launched at Felixstowe in 1984 and MCP was set up the following year to control and develop the system. It now also specialises in promoting and implementing integrated port information systems in the UK

and abroad. MCP regularly undertakes consultancy services to advise on the benefits of such systems and their implementation elsewhere in the world and has undertaken work on behalf of the World Bank and the European Commission. With 17 employees MCP generates sales of 3m. The delivery of SAP R/3 software via the BT BusinessManager application software provider service has given us access to a range of software that we would not normally consider cost effective. David Copsey Financial Controller http://www.mcpplc.co.uk/ SAP AG 2001, Title of Presentation, Speaker Name 18 Maritime Cargo Processing plc, Great Britain Details Maritime Cargo Processing plc went live in December 1998, as the inaugural customer of the BT

BusinessManager hosted application service. Scope of the project was Financial Management, and has since been expanded to include Asset Management. The implementation took just 36 hours to complete, making use of SAP UKs SME product Connect and Go, delivered through the BT BusinessManager service. 2 users access SAP on a day-to-day basis. David Copsey also said I can leave the worry of system management, upgrades and ongoing support in the hands of the ASP, allowing me time and freedom to concentrate on financial management. SAP AG 2001, Title of Presentation, Speaker Name 19

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