LIVE EXPERT SESSION SAP Shared Service Framework

1 LIVE EXPERTSESSIONSAP Shared Service Framework Bernhard FischerSolutions, Shared ServicesSAP AGThis SESSION provides the business context of the new solution 'SharedServices Framework ' and highlights the USP's that differentiate SAP'sapproach to Shared SAP Shared Service SAP Shared Service Framework generates and selling SAP Shared Service SAP Shared Service SAP Shared Service Framework generates and selling SAP Shared Service FrameworkAgendaTop Executive Issues that drive the trend to Shared ServicesF&A SSCTop executive issues How to increase Service efficiency? How to increase Service quality? How to reduce operational risk? How to prove the value of Shared services delivery? SAP 2009 / Page 5 Shared services elevator pitchShared services enable companies toConsolidate efforts for delivering the same services to different groups within an organizationLower administrative cost by leveraging economies of scaleAdapt more flexibly to growth and acquisitionsImprove the Service to the businessBest PracticesBaselineperformance of processes relevant for centralizationHarmonize and standardize business processesAutomate business processes via technology investments Enable employees and business partners via self services and single-point-of-contactManage services effectively through a globally consistent Service and operating modelImplement governance to internal client-provider relationship SAP AG 2009.

2 All rights reserved. / Page 6 HR Operating Model Service Delivery Model SSC organizational structure Location Service Level Agreements Governance model Legal formEmployee Interaction CenterInquiriesOrdersKnowledgeDatabaseDi gitalPersonnel FileScanningGeneralist1st LevelSpecialist2nd LevelExpert3rd LevelEmployee PortalSelf ServicesMailPhoneFaxE-mailCore FI-AR, HCM100%10%35%5%50%CorrespondenceToolAdob e Inter-active FormsEmployee Interaction CenterInquiriesOrdersKnowledgeDatabaseDi gitalPersonnel FileScanningGeneralist1st LevelSpecialist2nd LevelExpert3rd LevelEmployee PortalSelf ServicesMailPhoneFaxE-mailMailPhoneFaxE- mailPhoneFaxE-mailCore FI-AR, HCM100%10%35%5%50%CorrespondenceToolAdob e Inter-active FormsFour Action Areas are Common for Shared Service Projects to Reach the Full BenefitOrganizationPeople Change Management Communication Knowledge creation and transfer Business Simulation und Training Roles and Skill profiles Personnel adjustmentProcesses Cost Baseline Process scope and interfaces Harmonization and standardization Process documentation Process targets and parameter Pricing BenchmarksIT Infrastructure IT Architecture, IT application landscape Interaction Center Scanning, Workflow Knowledge base Self services Automation SAP CoE SAP 2009 / 7 SAP Shared Service Framework addresses the no.

3 1 investment focus of Shared Service decision makers: Process Automation13%6%21%22%18%29%17%24%24%33%3 5%28%42%28%43%82%6%0%12%18%29%29%35%35%3 5%35%35%41%41%47%65%100%Ex pansion to serv ice other functionsEx pansion to serv ice Legal functionVirtualizationMore Customer Contact Centers/Interaction CentersEx pansion to serv ice IT functionOff-shoringServ ice deliv ery platform ow ned by SSCC onsolidate number of SSCsMore self-serv iceOutsourcingGlobal ReachEx pansion to serv ice Procurement functionEx pansion to serv ice Finance functionEx pansion to serv ice HR functionMore Centers of Ex pertiseMore automationWorld-ClassPeer GroupSource: Hackett 2008 Shared services Performance Report SAP 2009 / 8 SAP Shared Service Framework addresses the biggest concern of Shared Service decision makers: Service QualitySource: Hackett 2008 Shared services Performance Report SAP 2009 / Page 9 Short descriptionValue propositionPain pointsPositioningTarget market/target customersCompetitor/Competitive solutionsPricing/average deal sizeReference customersSAP Business Development The market for Shared services Solution is very hot.

4 Nearly all LE customers are looking for potential to increase efficiency and lower cost Shared services applies to all industries increase efficiency lower cost by 16-61% (Source Hackett) increase Service quality ensure compliance support global governance enable strategic focus of HR, F&A etc. support growth strategy of customers Fragmented, inconsistent processes and inflexible technologies reduce resource productivity and Service responsiveness while raising costs Processes not automated No best practices used; varying standards Poor controls, low compliance Limited governance Lack of transparency Licence Revenue: Examples: 6,4 Mio. AllianzInsurance(EIC ESS/MSS); 7,8 Mio. DutchMinisteries(EIC HR ); 0,4 Mio. Sappi(EIC ESS/MSS); 4,1 Mio Gauteng (EIC/AIC) Average for the SAP Shared Service Framework plus additional Solutions for Shared services Process Management and upsellin Fin, Average solution consulting deal 300K -500k plus business transformation cons.

5 ADP*, Allianz, BASF*, Bayer*, Belgacom*, Colgate, Dresdner Bank, Deutsche Post World Net, E-On* ,Essent*, Gauteng*, Hypovereinsbank, Lufthansa, Philip Morris, Primondo, SAP*, Shell, Siemens*, Swisscom*, Deutsche Annington * Success Stories available Franz Deitering North America, South America, APJ, Nordics, Italy, Iberia, CE, Hindrik Jan (Rene) Zigterman UK, CIS, France, Belux, NL, South Africa, SEME Friederike Hettenstein DACHSAP offers Solutions for SSC that help to: Centralize resources Automation to reduce human interaction Standardize processes Harmonize processes Consolidate system landscapes SAP LE Customers Buying Center CFO, CHR-Officer; CIO CEO; Heads of SSC Main competition is Oracle (PSFT, Siebel) Workflow solutions like Basware, 170 systems threaten to freeze client-base Internal IT-ticketing solutions like Peregrine, Remedy, HP-Openview go into HR/FI SSC NorthgateArinso, Neocase, Getpaid are specific HR/FI Service desk toolsThe Shared Service opportunity SAP AG 2009.

6 All rights reserved. / Page 10 Shared Servicesan unparalleled opportunity for SAPS hared services on SAPA ccentureBPBASFC redit SuiseDaimlerDow DiageoENIM arriotMicrosoftMolExcelGuinnessHenkelHPP hillipsPfizerRocheSamsungSiemensSara LeeSonyWhirlpoolKey takeaways regdthe Shared services Opportunity We are not competing against Oracle, we are competing against bob vendors ( Concur, GetPaid) Customers that categorize themselves SAP customer will by default approach SAP for Shared services automation, but .. Shared services plan and decide with 3-6 months time frames and try elsewhere if we can t support their business SAP Shared Service SAP Shared Service Framework generates and selling SAP Shared Service FrameworkAgendaThe concept behind the SAP Shared Service Framework Pillar III Tools For Analytics.

7 Reporting and Governance Pillar I -AutomationMaximum use ofSelf ServiceApplicationsFlow of Work into the Shared services CenterMaximum Automation Of Core ProcessesUse of Applications to enhance Communication and Case II Effective Communication and Efficient Service DeliveryBest Practice SSC Operations SAP 2008 / Page 13 The SAP Shared Service Framework Communication front-end between Service Center and client Inbound and outbound communication with clients of the Service center are improved by tight integration between communication frontend and business applications Self services help enable process constituentsProcess facilitation Data from several client organizations processed at the Shared Service Center Logical aggregation of information as applicable Data exchange with backendsGovernance Manage Delivery against defined KPIsShared services FrameworkProduct Catalogue; Multifunctional back-end capability; IT-ArchitecturePortal Solutions; additional Self services ; Processes and Forms.

8 SLA Cockpit; track performance and enable compliant operationsF&AHRITP rocure-mentReal-Estate /FacilityEnablersEnablersEnablersShared ServicesProcess Management SAP 2008 / Page 14 SAP 2008 / Page 14 Corporate servicesProcurement Shared servicesHCM Shared servicesFinancial Shared servicesThe SAP Shared Service Framework complements SAP Solutions relevant for Shared services SAP product availableSAP product available with future releasesFuture focusPartner product availablePartner product available with future releasesCollaborative business map availableSxx, Vxx, BxxSAP product and Service PxxPartner productFor more information see: services process mgmt. Shared Service Framework Process flow analyticsService level mgmt. cockpitOCR inbound dochandlingOutbound doc. handlingSAP Interactive FormsDuet (information worker) SAP NetWeaver Master Data Management.

9 SAP NetWeaver Exchange Infrastructure Bus. comm. mgmt. (CTI and WICOM) Document Productivity Pack by RWD SAP Business Workflow Resource mgmt. General ledger Accounts payable Invoice management Supplier enabling (biller direct pay-side) Accounts receivable Credit management Collections management Dispute management Customer enabling (biller direct sell-side) Intercompany reconciliation Intercompany processing In-house cash Inventory accounting Fixed asset accounting Tax accounting Treasury Local close Financial statements Tax management SSC analytics Supplier connectivity Procurement interaction center Requisitioning Purchase request processing Purchase order processing Trading contract management Receiving Financial settlement Manage catalog content Managing compliance Supplier collaboration SSC analytics Travel management Real estate management Enterprise asset mgmt.

10 ,spec. IT help desk Environment, health, and safety compliance management Global trade services Payroll and legal reporting Time and attendance HCM processes and forms Benefits management Employee administration Recruiting Enterprise learning SAP Employee Self- Service and SAP ManagerSelf- Service Kiosk Systems SSC analyticsShared services FrameworkProduct Catalogue; Multifunctional back-end capability; IT-ArchitecturePortal Solutions; additional Self services ; Processes and Forms; ..SLA Cockpit; track performance and enable compliant operationsF&AHRITP rocure-mentReal-Estate /FacilityEnablersEnablersEnablersShared ServicesProcess Management SAP 2007 / Page 15 Please release internal order 400397 Mrs. W hangIntegration frontend / backendsInteraction Center SAP 2007 / Page 15 Financial systemsAccess to data from financial systems to solve Service requestsExceptions within local financial processes SAP Shared Service SAP Shared Service Framework generates and selling SAP Shared Service FrameworkAgenda SAP AG 2009.