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1 SAP in Public Sector Customer Centric Innovation and Localization Markus A. Werling, g Vice President Industry Business Unit Public Sector SAP AG Agenda o o o SAP in Public Sector Customer Centric Innovation Portuguese Localization SAP 2009 / Page 2

2 Summary of SAP Today SAP AG in 2008 revenues: billion Around 86,000 organizations run SAP software Providing more than 25 industry solutions (e.g. Public Sector, Postal, Defense, Healthcare,.) 49,916 SAP employees (March 31, 2009) 12 million users in 120+ countries team with us to Integrate their business processes Extend their competitive capabilities Get a better return on investment at a lower total cost of ownership Unique partner ecosystem More than 1.5 million community members (SDN and BPX) 15 Industry Value Networks SAP / Page 3 More than Customers Globally run SAP for Public Sector Public Administration Education & Research Tax & Revenue Management / Electronic Tolls Public Security

3 SAP Public Sector Solutions Supporting Lisbon City Government Lisbon City Hall, Portugal Accounting for public sector (EA- PS: Portuguese Add-On) SAP ERP Financials SAP Public Sector Collections and Disbursements Flexible Real Estate Management Financial services corporate mortgage loans Sales and distribution Quality management Plant maintenance Business intelligence (BI) Integrated plan (IP) Incorporated 30% of the decentralized treasury posts into the IT system within 1 year after go-live Improved decision making, thanks to easy access to reliable information Streamlined financial processes reducing associated costs Enabled council to serve business partners and citizens more effectively SAP 2009 / Page 5 SAP delivers end-to-end solutions for the Public Sector Oversight & Evaluation Policy / Program Budgeting Resource Planning Operations Service Delivery Outcome Strategy Management Constituent Services, Tax and Revenue, Social Services, Public Security Public Administration (Finance, Procurement, Human Resources, Payroll) Analytics, reporting & business intelligence Industry Cross-Industry Governance, risk, and compliance Data exchange & legal requirements SAP 2009 / Page 6

4 Market Trends Shaping Public Services Portfolio Heightened transparency and services, fiscal pressure, and compliance Demanding Constituents Increased Budget Deficits Performance Management and Compliance Government Transformation Constituent focused, Resource optimization Result orientation and Transformation agendas responsive service and and operating outcome focused and dit program delivery efficiencies projects modernization to meet demand for coordinated, collaborative service delivery, and support emerging Gov 2.0 thinking...given flat or reduced revenue streams, retiring workforces and increased scrutiny on expending public funds fulfilling compliance, focusing on performance, economic, environmental, and social sustainability IT consolidation, business process standardization and new business models SAP 2009 / Page 7 Citizens and Businesses Interaction with Government Budgeting Tax Tax && Revenue Rev. Mgmt. Social Services Finance Mgmt. Customer Taxpayer Procurement Constituent Services Human Community Member Resources Education Public Security Sustainability Citizen Centricity Multi Channel Collaboration Communication Organize services & information around citizens needs & circumstances. SAP 2008 / Page 8 Use a variety of channels to provide services and information to constituents Collaboration between different government entities to provide integrated services Proactively reach out to communicate with constituents

5 How SAP is driving innovation with customers and partners Customer-based communities share best practices and set standards for the future Communities of Innovation Public Sector Advisory Council Collaborative Communities Industry Technical Standards Public Sector Advisory Council Bi-directional, forward-looking exchange with customers to influence and shape the future of the public sector industry Collaborative Communities Business Process Expert Communities Fosters open discussions to exchange industry information Industry Value Network Co-Innovation forum with customers, software and integration partners SAP Developer Network Supports open discussions to exchange SAP technical information Enterprise Services Community Member of enterprise SOA influencer council SAP 2008 / Page 9 Center of Innovation and Demonstrations (CID) SAP Serviços Aplicações e Produtos GeRAP Gestão Recursos na Administração i Publica EDUCATE Promote Innovate Educate Demo new functionalities Creation of competence centers, supporting new solutions and leveraging the usage of shared services Contribution to creation of new programs and training initiatives SAP 2008 / Page 10

6 Portuguese Add-On - Milestones Add-On milestones: 2004 Center of Expertise creation Ministry of Defense project RIGORE 2007 Ministry i of Finance DGO (Budgetary) GeRAP Institutions using GeRFiP: DGO Direcção-Geral Orçamento (Bugetary Central Directory) GPEARI - Gabinete de Planeamento, Estratégia, Avaliação e Relações Internacionais do Ministério da Finanças (Gabinete of Planing, Strategy and Internacional Relations of MoF) IGF - Inspecção-Geral de Finanças (General Inspection Department of MoF) II - Instituto de Informática do Ministério das Finanças e da Administração Pública IT department of MoF) SGMFAP - Secretaria-Geral do Ministério das Finanças e da Administração Pública (General Secretary of MoF) Till end of 2009: ADSE - Direcção-Geral de Protecção Social (General Department of Social Services) Tribunal de Contas e de mais 8 organismos SAP 2008 / Page 11 SAP ERP Portuguese Localization Live customers Ministry of Defense Ministry of Finance Lisbon City Hall Social Security SMAS Almada SMAS Sintra Policia Judiciária Functionality Duodecimos Expense and Revenue Liquidation Year End Closing Budgetary Ledger Portugal SAP Team Public Sector CoE (Center of Expertise) Public Sector IBU (Industry Business Unit) Integration Areas Human Resources Materials Management Asset Accounting Project System Financials Budgetary SAP 2008 / Page 12

7 Summary Key Take Aways Understand your customers/constituents and organize around their needs Multi Channel do not leave anybody behind Cross Government collaboration is key to deliver highest value Partnership with the private sector SAP 2009 / Page 13 SAP in Public Sector Customer Centric Innovation and Localization Markus A. Werling, Vice President g Industry Business Unit Public Sector SAP AG

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