SAP Solution Manager Value Proposition. Walldorf, April 2007

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1 SAP Solution Manager Value Proposition Walldorf, April 2007

2 Agenda Application management challenges Implementation / Upgrade Operations Optimization Application management lifecycle Routes to success

3 Business and IT-challenges have a direct impact on the complete solution lifecycle and determine CIO priorities IT challenges and CIO top priorities Business and IT-challenges Tightened IT budgets Need for flexible solutions Need for constant innovation Increased system complexity Internationalization Changing business models Align IT and business goals Ensure IT-enabled process improvement Improve project management discipline CIO top priorities* Application Management Ensure business continuity Enable or enhance knowledge management and leverage intellectual assets Control IT-costs Improve internal user satisfaction Create or maintain the ability to innovate Ensure regulatory compliance *Sources: STATE OF THE CIO 2006, EIU 2006

4 Today s application management has in all IT Management focus areas untapped potential and room for improvement CIO s application management pain points Current Situation The eight IT Management Focus Areas Implementation and IT Project support Change Management Continuity Management Quality Management Operations costs 5 6 IT Governance 100 = Best in class application management 0 = Low quality application management AS-IS Situation (average customer) 7 8 Diagnosis and Continuous Improvement Incident and Problem Management

5 SAP Solution Manager provides a comprehensive solution to run your SAP solutions along the complete lifecycle SAP Solution Manager key capabilities Secure Project Success Ensure consistency across the entire SAP landscape Enable TCO Reduction Optimize access to SAP s world-wide network of experts Accelerate project execution through pre-configuration Reduce testing, documentation and training effort Application Management Facilitate Process Improvement Avoid recurring incidents Enlarge IT effectivness Optimize change request management Continuous pro-active monitoring of systems and mission-critical processes Provide up-to-date transparency of the SAP solutions

6 Agenda Application management challenges Implementation / Upgrade Operations Optimization Application management lifecycle Routes to success

7 Implementation and upgrade projects require proven tools, content and methodology Customer implementation / upgrade requirements Customer situation Implementation/ upgrade requirements New implementation or upgrade project is planned Company wide standardization is required Distributed landscapes require new capabilities to manage configuration Customers existing solution documentation often not sufficient Major new functionality needs to be implemented Application Management Need for a proven and comprehensive implementation methodology and supporting tools Enable global rollout and management of templates Ensure consistent management of configuration Provide integrated e-learning management Enable efficient and integrated test management Provide detailed project documentation

8 SAP Solution Manager enables efficient implementation and upgrade projects SAP Solution Manager benefits during implementation and upgrade SAP Solution Manager capabilities Benefit Process based end-to-end testing and central test planning, execution and monitoring Reduction in effort required for testing, replace third party tools for testing Management of customizing across components and regions Ensure consistency of customizing Use preconfigured implementation content No need of individual design Reduction of implementation effort Optimize project preparation and administration with a proven implementation methodology Reduce project administration costs Use available documentation content for your project documentation Reduce effort for project documentation Management and distribution of e-learning material Reduction of training costs and increase of training effectiveness

9 With foreseeable external effort the SAP Solution Manager realized untapped potential during implementation & upgrade SAP Solution Manager implementation & upgrade cockpit SAP Solution Manager potential AS-IS Situation (average customer) 0 SAP Solution Manager Implementation Benefits Implementation and IT Project support Change Management Continuity Management Quality Management* Operations costs IT Governance Diagnosis and Continuous Improvement Incident and Problem Management Benefit Areas: Use optimized implementation tools and methods Ensure smooth and secure go-live Usage of integrated test scenarios Reduce test and training effort Use integrated comprehensive (project) documentation Implement a solution based on SAP best practices and according to SAP implementation methods External Effort: Benefits and Effort SAP Solution Manager installation 3-7 days Introduction to SAP Project Preparation, Business Blueprint, Realization, Test management, e-learning and go live (on-site workshops) days** Introduction to template projects days** Introduction to upgrade usage 7-10 days** = no impact = high impact *Including Mercury QC integration **Knowledge transfer plus realization of exemplary customer scenarios

10 Agenda Application management challenges Implementation / Upgrade Operations Optimization Application management lifecycle Routes to success

11 Efficient IT-operations requires integrated solutions Operations requirements Customer situation Customers help desk is often decoupled from SAP Systems and ticket processing times are not acceptable Insufficient problem analysis and fixing Poor handling of change requests SLA agreements are not monitored System information is distributed across different tools and databases Systems are not monitored proactively Application Management Operations requirements Provide an integrated service desk and implement best practices for ticket solving Support cost effective central system administration Provide detailed SLA reporting Provide all relevant system information automatically Enable proactive system monitoring and ensure greater system stability Use SAP Early Watch Alerts and Diagnostics to analyze your systems

12 Optimize your Service Desk and Help Desk functionality with SAP Solution Manager for operations SAP Solution Manager benefits during operations SAP Solution Manager capabilities Benefit Tight integration of service desk and change request management Resolve problems by triggering change requests Service Desk: SAP incidents contains automatically all relevant SAP System information incl. partner product transparency within the solution hierarchy Faster problem resolution without message ping pong Service Desk: Optimize incident handling and provide an integrated solution database Increase first level resolutions as well as resolution times Automatic capturing of incident solving knowledge Orchestrate best of breed system management tools Leverage existing investment in management tools Automate core business process monitoring as well as reporting of log files and interfaces Reduce operation cost for monitoring activities and ensure system availability Integrate SAP EarlyWatch and diagnostics Reduce downtimes and decrease time to resolution

13 SAP Solution Manager ensures stabile and cost effective operations SAP Solution Manager operations cockpit SAP Solution Manager potential AS-IS Situation (average customer) 0 SAP Solution Manager Operations Benefits Implementation and IT Project support Change Management Continuity Management Quality Management* Operations costs IT Governance Diagnosis and Continuous Improvement Incident and Problem Management Benefit Areas: Provide a completely integrated service desk Ensure integration of service desk and change request management Enables central system administration Optimize solution monitoring Support integration of best of breed system management tools Ensure stability of your solutions through Early Watch Alerts and diagnostics External Effort: Benefits and Efforts SAP Solution Manager installation 3-7 days Service Desk 5 days** Change Request Management 10 days** = no impact = high impact *Including Mercury QC integration **Knowledge transfer plus realization of exemplary customer scenarios

14 Agenda Application management challenges Implementation / Upgrade Operations Optimization Application management lifecycle Routes to success

15 Ensure proactive problem solving and constant optimization Optimization requirements Customer situation Missing transparency on real IT cost drivers Mergers and acquisitions are constantly placing new demands on IT- solutions Reactive problem solving is standard practice Root cause of problems is often not analyzed Insufficient audit trail for changes Application Management Optimization requirements Provide transparency on real IT-costs Provide all necessary IT-information to integrate new acquisitions as fast as possible Enable proactive optimization and root cause analysis Diagnose problems and trigger their remediation Optimize IT Governance through best practices change request management processes

16 SAP Solution Manager has the capability to constantly improve your IT Solutions SAP Solution Manager benefits during optimization SAP Solution Manager capabilities Benefit Improve quality of IT services and increase reliability of IT solutions Ensure the optimal use of IT Improve root-cause analysis for recurring incidents Decrease the amount of recurring incidents Provide a consistent view on all projects and changes Prevent parallel / duplicate development efforts Enable Change request management according to best practices (ITIL) Changes are carried out, tested and transported in the right order and according to their importance Optimize usage of existing hardware Reduce hardware costs

17 Improve your IT-Landscape with SAP Solution Manager SAP Solution Manager optimization cockpit SAP Solution Manager potential Benefits and Efforts Benefit Areas: Implement best in class change request management Enable constant innovation and optimization Integration of best of breed system management tool Manage software changes transparently Prevent parallel / duplicate problem solving efforts AS-IS Situation (average customer) SAP Solution Manager Optimization Benefits Implementation and IT Project support Change Management Continuity Management Quality Management* Operations costs IT Governance Diagnosis and Continuous Improvement Incident and Problem Management External Effort: SAP Solution Manager installation 3-7 days Business Process Management 14 days** Central Performance History 5 days** Service Level Management 2 days = no impact = high impact *Including Mercury QC integration **Knowledge transfer plus realization of exemplary customer scenarios

18 Agenda Application management challenges Implementation / Upgrade Operations Optimization Application management lifecycle Routes to success

19 The SAP Solution Manager realizes in all IT Management focus areas untapped potentials Benefit realization map 1. Implementation/ Upgrade 2. Operations 3. Optimization 4. Complete lifecycle Value Realization Investment Limited investment Limited investment Limited investment No additional investment Operational Excellence Improvement Improvement Improvement Improvement TCO Improvement Improvement Improvement Improvement Key Benefits Areas Reduced testing effort Ensure consistency Reduced implementation and upgrade costs Optimized solution monitoring Central system administration Faster issue resolution Reduce amount of recurring incidents Prevent duplicate developments Reduce hardware costs Integrated solution Comprehensive IT governance framework Ensure business continuity Motivation Secure project success TCO Reduction Process Improvement End-to-End Application Management = As Is - Today = Improvement through SAP Solution Manager

20 Agenda Application management challenges Implementation / Upgrade Operations Optimization Application management lifecycle Routes to success

21 For each individual customer situation the right SAP Solution Manager starting point could get identified SAP Solution Manager routes to success selective complete SAP Solution Manager Functionality 2 Integration Benefits first 1 3 Combined Approach Quick Wins first complete selective 1 Use selected functionalities company wide to address pain points that can be solved fast 2 3 Reap Quick wins first Reap integration benefits first Use the complete SAP Solution Manager functionality for selected company areas Combined approach Try to reap the benefits of both scenarios SAP Solution Manager Utilization = Starting Point = Intermediate solution = Optimal solution There are multiple ways to reach the highest benefit level. The selection of the individual path depends on the customer s situation and IT strategy

22 Further Information General Information SAP Solution Manager (General Information) SAP University Classroom Trainings => Training E-Learnings (Learning Maps) Online Documentation

23 Appendix

24 SAP Solution Manager Delivers Value I/III Customer Key Challenge Project Objective Key Benefits Reduce number of incidents reported by users Speed up error detection, escalation & resolution Improve service to user Lower cost of ownership and maximize value of technology investment Become self-sufficient in solution monitoring and optimization Implement a single corporate monitoring tool to manage the entire solution landscape Integrated, continuous business process and system management from a single console Automated alerts for early warning of problems, enabling correction before they impact users Ability to detect errors in less than 2 minutes instead of 30 Improved ability to escalate problems (up to 10 times) and resolve issues (40% faster) 20% reduction of malfunctions reported by users Resolve Sap user issues rapidly and cost-efficient Improving operations for 85 live SAP systems used worldwide by more than employees Establish a virtual SAP Customer Competence Center built around SAP Solution Manager to handle worldwide support for ABB s SAP solutions Rapid resolution of issues Clear documented process for resolving issues Automatic inclusion of relevant IT landscape information (in requests for assistance) reduces workload for support staff

25 SAP Solution Manager Delivers Value II/III Customer Key Challenge Project Objective Key Benefits Accelerate daily system checks and monitoring Reduce manual effort Minimize downtime Introduce a single central tool for monitoring and managing the company s SAP software Implement proactive alerts on system performance and stability Increased effectiveness of central administration Provide 360-degree visibility across entire SAP software landscape Allowed for recording all activities via dedicated logbook Enabled regular updates on performance and stability through SAP EarlyWatch Alert Facilitated proactive analysis of potential security issues Accelerated daily system check and monitoring Increased productivity thanks to automation Improved system stability Insufficient reporting flexibility Inconvenient off-site functionality Insufficient change management capabilities Upgrade existing SAP Software and increase IT management capabilities Projected cost reduction of 25 30% Projected support resource reductions by 15 20% Projected 50% reduction in trouble ticket turnaround time

26 SAP Solution Manager Delivers Value III/III Customer Key Challenge Project Objective Key Benefits Cost-effectively replace outsourced IT support desk software and services Provide a complete in-house IT support desk with fully automated distribution and communication of information to all appropriate parties Complete control of support desk performance Ease of use Quick ROI on development costs and ongoing savings on operational support costs Seamless integration with SAP asset management capabilities Simplified alerting via Accessible to all IT staff Reduction in number of application to maintain No additional license fee since SAP Solution Manager is cover by standard maintenance agreement

27 Copyright 2007 SAP AG All rights reserved No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. SAP, R/3, mysap, mysap.com, xapps, xapp, SAP NetWeaver, Duet, Business ByDesign, ByDesign, PartnerEdge and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned and associated logos displayed are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, ohne die ausdrückliche schriftliche Genehmigung durch SAP AG nicht gestattet. In dieser Publikation enthaltene Informationen können ohne vorherige Ankündigung geändert werden. Einige von der SAP AG und deren Vertriebspartnern vertriebene Softwareprodukte können Softwarekomponenten umfassen, die Eigentum anderer Softwarehersteller sind. SAP, R/3, mysap, mysap.com, xapps, xapp, SAP NetWeaver, Duet, Business ByDesign, ByDesign, PartnerEdge und andere in diesem Dokument erwähnte SAP-Produkte und Services sowie die dazugehörigen Logos sind Marken oder eingetragene Marken der SAP AG in Deutschland und in mehreren anderen Ländern weltweit. Alle anderen in diesem Dokument erwähnten Namen von Produkten und Services sowie die damit verbundenen Firmenlogos sind Marken der jeweiligen Unternehmen. Die Angaben im Text sind unverbindlich und dienen lediglich zu Informationszwecken. Produkte können länderspezifische Unterschiede aufweisen. Die in diesem Dokument enthaltenen Informationen sind Eigentum von SAP. Dieses Dokument ist eine Vorabversion und unterliegt nicht Ihrer Lizenzvereinbarung oder einer anderen Vereinbarung mit SAP. Dieses Dokument enthält nur vorgesehene Strategien, Entwicklungen und Funktionen des SAP -Produkts und ist für SAP nicht bindend, einen bestimmten Geschäftsweg, eine Produktstrategie bzw. -entwicklung einzuschlagen. SAP übernimmt keine Verantwortung für Fehler oder Auslassungen in diesen Materialien. SAP garantiert nicht die Richtigkeit oder Vollständigkeit der Informationen, Texte, Grafiken, Links oder anderer in diesen Materialien enthaltenen Elemente. Diese Publikation wird ohne jegliche Gewähr, weder ausdrücklich noch stillschweigend, bereitgestellt. Dies gilt u. a., aber nicht ausschließlich, hinsichtlich der Gewährleistung der Marktgängigkeit und der Eignung für einen bestimmten Zweck sowie für die Gewährleistung der Nichtverletzung geltenden Rechts. SAP übernimmt keine Haftung für Schäden jeglicher Art, einschließlich und ohne Einschränkung für direkte, spezielle, indirekte oder Folgeschäden im Zusammenhang mit der Verwendung dieser Unterlagen. 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