SAP Release Strategy For All Major Software Products Status: March 2013

Transcription

1 For SAP Customers and Partners For All Major Software Products Status: March 2013

2 Disclaimer This document reflects the status of SAP s release planning as of March It contains only intended strategies, developments, and/or functionalities of SAP solutions, applications, and technologies and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development; its content is subject to change without notice. This document is not subject to your license agreement or any other service or subscription agreement with SAP. 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 noninfringement. 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 or their content. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the publication date, and they should not be relied upon in making purchasing decisions. 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 2 / 111

3 Table of Contents 4 Purpose of the Document 5 1. SAP Solutions Industry and Line-of-Business Solutions Run Like Never Before Trends and Implications SAP Solutions for Industries and Lines of Business Solutions for Industries Solutions for Lines of Business Prepackaged Best Practices Influencing SAP Solutions SAP Software Products Product Strategy and Product Portfolio Cloud Applications Analytics Mobile Database and Technology Licensing Model Services and Support SAP Services SAP Support Support for Upgrade and Enhancement Package Projects SAP Ecosystem and Channels A Powerful Ecosystem of Partners SAP Store SAP Community Network SAP Release and Strategy Release and Strategy for On-Premise Software Availability Shipment Phases Strategy Rules Strategy Exceptions Phases Upgrade Integration Product Availability Matrix Release and Strategy for On-Demand Solutions Availability Functional Enhancements and Integration Release and Strategy for Mobile Apps Availability Functional Enhancements and Availability and Details for SAP Releases Cloud Cloud Applications Cloud Platform Cloud Infrastructure Business Networks Applications SAP Business Suite Core Applications Industry Applications Supplementary Applications SAP Business One Analytics Business Intelligence Enterprise Performance Management Governance, Risk, and Compliance Applied Analytics Mobile Enterprise Mobility Management Mobile Platform Mobile Apps Database and Technology Database Application Development and Integration IT Management Information Management 109 Glossary 3 / 111

4 Purpose of the Document This release strategy brochure focuses on the SAP software product portfolio. It documents the SAP release and maintenance strategy for releases that have been shipped from 2005 onward. The release planning data for future releases is intended to support the planning of SAP implementation and upgrade projects. For information on SAP software that was released before 2005, see the Product Availability Matrix on the SAP Service Marketplace extranet. Logon requires user name and password. New users can register at 4 / 111

5 1. SAP Solutions 1.1. Industry and Line-of-Business Solutions Run Like Never Before Our vision: Help the World Run Better and Improve People s Lives For 40 years, SAP has helped businesses run better through world-class software solutions. As the world undergoes a fundamental digital transition, we believe that SAP can play a major role in optimizing business to run better and more sustainably in the future. Furthermore, we have an extraordinary opportunity to apply technology to make the world run better while simultaneously improving people s lives everywhere. Our Mission: Help You Become Best-Run Businesses To help organizations around the world capitalize on new opportunities in today s connected and collaborative economy, we have developed a unified portfolio strategy that consists of innovations in five key market categories Applications, Analytics, Mobile, Cloud, and Database and Technology, all powered by the SAP HANA platform, our game-changing in-memory computing platform (see Figure 1). Figure 1: Aligning Our Portfolio for Customer Success Cloud Applications Analytics Mobile Database and Technology 11 lines of business 24 industries Products Solutions Customer value Go to market By combining our market-leading innovations across the five categories into powerful solutions and best practices tailored for 24 different industries and 11 lines of businesses, SAP helps you run like never before and innovate beyond your industry boundaries. What s more, businesses of all sizes can quickly deploy our solutions in any way they choose, including on demand, on premise, and on mobile device. The SAP Services portfolio is designed to enhance, enrich, and facilitate the implementation, adoption, and usage of our solutions throughout their lifecycles. Together with trusted SAP ecosystem and partners, we can help make your business more agile and adaptable, as well as help you fully engage with your customers, employees, and business partners, and, above all, become a best-run business. Trends and Implications Smarter, Faster, Simpler Changing the Status Quo Enterprises across the globe are evolving in a challenging economic environment with three major forces driving change now, to open new avenues for unprecedented opportunities and prepare for the future: the Big Data era, fastpaced business, and a new IT innovation cycle. Big Data Era As the amount of information continues to explode, enterprises are faced with new challenges for collecting, consolidating, and consuming Big Data characterized by higher volume, velocity, and variety of data. Enterprises can derive new business value from Big Data by better exploiting Services and partners 5 / 111

6 1.1. Industry and Line-of-Business Solutions the full potential of their data to make smarter decisions, react more quickly to changes in the market, accelerate key processes (such as planning), or simply innovate new data-driven business models not possible before. Business requirement: Your enterprise needs to become more data-driven. Fast-Paced Business Traditional one-time annual planning no longer preserves differentiation, because enterprises cannot respond to market requirements and changes as they happen. Change happens in real time and requires fast responses from the organization to generate quicker time to value. In the enterprise, the increase in the speed of change means that managers cannot rely on experience or intuition alone to make decisions. Shorter decision windows demand a rapid, insightful response from employees based on ongoing internal and external events. Business requirement: Your enterprise needs to become more people-driven. New IT Innovation Cycle We are observing the emergence of a new wave of technologies including cloud, enterprise mobility, and in-memory computing that organizations can use to completely reshape their industry evolving towards real-time business networks. These advancing technologies and their swift adoption are upending traditional business models. Senior executives need to think strategically about how to prepare their organizations for the challenging new environment. Business requirement: Your enterprise needs to become more innovation-driven. Any Data, Any Insight Data Management in a Big Data World Across almost every industry or sector, companies are grappling with vast and growing amounts of information. Data is generated by business operations and enterprise applications. And, increasingly, data is generated by many new sources. People generate vast amounts of data that companies now want to analyze and act on, such as Web click trails, social media tweets and posts, or e-commerce behavior. Machines also generate massive data streams that can be useful for businesses from RFID tags, mobile devices, and other embedded sensors. This data arrives in many formats structured (for example, traditional relational tables), semistructured (for example, documents, spreadsheets, HTML), unstructured (for example, audio, video, images), and, more recently, streaming. There is value to be found in all this data, and innovative companies are learning just how much. Analyzing tweets and social network posts for sentiment analysis helps retailers tune product development and marketing campaigns. Call-detail record analysis helps telecommunications providers aim up-sell and cross-sell offers. Location-aware applications, combined with customer purchasing histories, allow retailers to target real-time promotions to mobile users. 6 / 111

7 1.1. Industry and Line-of-Business Solutions For IT, turning vast stores of data into valuable business information requires new approaches. Today, in-memory computing is dramatically changing the IT landscape. Many organizations are moving to in-memory computing, which offers performance improvements in orders of magnitude over the disk-centric architectures designed in the 1980s and 1990s. The growth of computing capability with multicore processors and the plummeting cost of RAM memory dramatically lower the cost of in-memory computing. Massively parallel processing technology and advances in predictive data science with more sophisticated algorithms (for example, automated trading, real-time behavior, and recommendation analysis algorithms) are applying pressure on older data management technologies. The ability to ask any question (without knowing it in advance) and the radical simplification of IT environments are showing the limitations of older data management technologies. Current relational databases with disk-centric architectures have become a big bottleneck, with slow access speeds and programming constraints not conducive to handling today s volume, velocity, and variety of data-processing requirements in analytics and emerging applications (such as for trade promotion management or real-time, collaborative campaign management) in a realtime environment. These business and technology trends are driving the adoption of in-memory computing, which is thousands of times faster than disk-based relational databases and can simultaneously provide real-time analytics and processing in the same application. Anywhere and Anytime Mobile Access in a People-Centric World Enterprise information is now accessed more and more on the move, as mobile workers use smartphones and other devices to stay connected and productive both in and out of the office. Our customers and partners are mobile, too. According to IDC, sales of smart mobile devices smartphones and tablets will grow by 20%, generating 20% of all IT sales and driving 57% of all IT market growth. 1 The operating system and app strategy employed by Apple (ios) and Google (Android) to launch smartphones for consumers won people over with fun, easy-to-use mobile apps and information access. Consequently, the consumerization move has generated intense demand outside the consumer sphere, from businesspeople and executives, based on their experiences with consumer applications. No longer satisfied with limited device choices and a few mobile apps to help them stay in touch and be productive, employees now place intense pressure on IT for change in two areas: the flexibility to choose devices and easy-to-use mobile apps. As such, IT needs to focus on mobile infrastructure and security issues as well as the mobile user experience. The Big Move to the Cloud The move to the cloud is not only underway it is accelerating. Cloud solutions have quickly proven their ability to provide rapid value, innovation, and results. Realizing this, businesses of all sizes are accelerating their adoption of cloud solutions. According to Saugatuck Technology Research, 1. Source: IDC Predictions: Competing on the 3rd Platform, Frank Gens, IDC, November 2012 document # / 111

8 1.1. Industry and Line-of-Business Solutions By 2016, 75% or more of new enterprise IT spend will be cloud based or hybrid. 2 Increasingly servers are now virtual or deployed on either an internal or public cloud platform, and it is clear that cloud computing has become the deployment option of choice for new and repurposed enterprise applications alike. The speed and ease of deployment with unprecedented scalability and an attractive cost model have convinced a large number of CIOs to develop a cloud strategy for their organizations. Energy and Sustainable Operations IT as a Catalyst for Expanding Profitability Global macroeconomic trends, such as tightened government regulations, volatile energy prices, and social media enabled customers, have made businesses more aware of the impact of sustainability issues on profitability. As a result, energysustainable operations and sustainable products are now part of boardroom discussion. C-level agendas are filling up with the challenges associated with managing risks and exploiting operational and business opportunities regarding social, environmental, and economic sustainability. businesses improve their short-term and longterm profitability by managing environmental and societal risks and opportunities. We focus on integration of SAP software enabled business processes and enabling low-touch exchange of regulatory information across supply chains and on extending safety to all employees through mobile apps. This commitment enables cross-industry solutions, including sustainability reporting, operational risk management, product safety and stewardship, and energy and environmental resource management. We also look at industryspecific solutions, such the release of our SAP Smart Energy Data Foundation software and the SAP Customer Energy Management software. With these two products, we provide both the utility with internal analysis of detailed consumption data as well as providing the end customers of the utility access to this same data. For more information, visit 3 SAP is continuing its strategic and operational commitment to sustainability. We start by demonstrating how we have successfully achieved our own measurable and defined internal goals supported by the use of SAP technology. We are also providing solutions to help customers achieve their sustainability goals, whether delivered on premise, on demand, or on mobile device. Our sustainability strategy is to develop solutions and complementary services that help 2. Saugatuck Technology, 2012 Cloud Business Solution Survey, February For more information, see 8 / 111

9 1.2. SAP Solutions for Industries and Lines of Business Our customers manufacture more than 77,000 automobiles per day. Our customers distribute more than 71% of the world s food. More than 60% of the world s transactions touch an SAP software system. Leading companies in various industries rely on our industry and line-of-business solutions to run their businesses better than ever before. And as the world continues to change, our solutions for solving complex business problems will become more relevant than ever. With this in mind, we have a vision to help the world run better and improve peoples lives. With vast experience in enterprise resource management and the latest technology innovations, SAP is providing a new category of industry and line-of-business solutions that reshape the IT industry, transform business networks, and provide high value to businesses and governments around the world. With the increasing use of mobile devices and social networking services, new products and technologies are continuing to change the way companies are engaging with their customers and business partners and opening up new opportunities to excel as a best-run business. As part of SAP s five market categories strategy Applications, Analytics, Cloud, Mobile, and Database and Technology our product and technology innovations unfold their compelling business value when wisely integrated into a company s value-creation processes. By combining products and technologies into easily consumable, packaged solutions tailored to solve business problems for 11 lines of business across 24 industries, we are continuing on the path to solving specific business issues at the lowest total cost of ownership (TCO) and creating customer value while delivering on our promise of innovation without disruption (see Figure 2). Figure 2: Aligning Our Portfolio for Customer Success Solutions for Industries and Lines of Business Cloud Applications Analytics Mobile Database and Technology Services and partners You can discover the value of our industry and line-of-business solutions with our self-service tools for customers: SAP Solution Explorer allows you to explore the entire SAP solution portfolio in the context of industries and business responsibilities. SAP Value Maps structure our industry solutions along business and technology priorities. To get an overview of our SAP Value Maps for 2013 and to explore the SAP solution portfolio, visit 11 lines of business 24 industries Products Solutions Customer value We have a mandate to provide clarity to you on how you can generate significant benefits with our current portfolio of solutions and products as well as how our future innovations will help to create new value. SAP road maps help to meet this goal by highlighting the solutions and products available today, the value-oriented planned innovations, and the vision for the future. We are granting access to our road maps to all registered users on SAP Service Marketplace at 4 Go to market 4. Logon requires user name and password; new users can register at 9 / 111

10 1.2. SAP Solutions for Industries and Lines of Business Solutions for InduSTRIES The SAP industry solution portfolios support best-practice industry processes and are the result of constant co-innovation with industry-leading customers and partners. As companies need the ability to quickly adjust their business models to respond to changing market requirements, they are looking for software solutions that provide two things: business value and lower TCO. We provide business value by delivering solutions that support end-to-end business processes, combining horizontal and industry-specific solutions that help you: Collaborate better Attract and engage customers on any channel and any device Decide better Achieve faster time to market through insight into what the customer wants Adapt better Identify and seize opportunities that reflect changing customer needs Operate better Unify and accelerate fulfillment for improved margins We also provide IT value through orchestration across on-premise and on-demand solutions and on any device, providing flexibility, security, and scalability for 24 industries on a single IT platform. Together with the power of in-memory computing provided by SAP HANA, our proven analytics functionality, and our comprehensive partner ecosystem, this IT platform models the way to real-time business, not only simplifying complex and expensive IT architectures, but also enabling our customers to imagine new ways of doing business. And, as companies need to keep pace with changing customer needs and market dynamics, one other aspect in addition to immediate business value and low TCO becomes vitally important: the capability to build multi-industry value chains that drive profitable growth. Through the powerful combination of solutions for 24 industries, 11 lines of business, and 5 market categories, our solution portfolio allows companies to take advantage of best practices from a large variety of industries. Many companies are relying on SAP software as the platform to grow and operate their business across multiple industries both to manage diverse business units like consumer electronics and heavy equipment or to integrate the value chain for customer-centric value creation. For example, oil companies use retail best practices to optimize store operations and merchandizing to increase revenue and profit in their gas station networks. Retailer and automotive original equipment manufacturers (OEMs) offer banking and insurance services to their customers. Banks look at supply chain processes to optimize cash supply and stock outages for their automatic teller machines. Industrial machinery firms and components manufacturers borrow service processes and practices to drive customer profitability and competitive differentiation with processes invented and optimized in the services industries. Find out more on how this cross-industry strategy can help support your transformation in our white paper Unlocking New Business Value with SAP s Industry Strategy, available at 10 / 111

11 1.2. SAP Solutions for Industries and Lines of Business We support enterprises in the following 24 industries with solution portfolios that enable best-practice industry processes (see table below). Industry Sector Discrete manufacturing Process manufacturing Consumer products Energy and natural resources Retail and wholesale distribution Public services Financial services Services Health sciences Industry Portfolio SAP for Aerospace & Defense SAP for Automotive SAP for High Tech SAP for Industrial Machinery & Components SAP for Chemicals SAP for Mill Products SAP for Consumer Products SAP for Oil & Gas SAP for Mining SAP for Utilities SAP for Retail SAP for Wholesale Distribution SAP for Defense & Security SAP for Higher Education & Research SAP for Public Sector SAP for Banking SAP for Insurance SAP for Engineering, Construction & Operations SAP for Media SAP for Professional Services SAP for Telecommunications SAP for Transportation & Logistics SAP for Healthcare SAP for Life Sciences Solutions for LinES Of BusinESS SAP delivers business process solutions for all key business areas. The value from these line-ofbusiness solutions is gained from the speed and reach of adoption. Being able to take advantage of a hybrid solution of cloud and on-premise applications with powerful mobile access is changing how our customers deploy and use technology to become a best-run business. The line-of-business solutions have their origins in the best practices developed in individual industries to support the business in the areas of finance, human resources, sales, service, manufacturing, supply chain, procurement, and others. The solution portfolio includes SAP Business Suite software; as well as cloud, analytics, and mobile solutions; and technology innovations such as in-memory computing. Using the functionality of various components of the SAP NetWeaver technology platform, the SAP HANA platform, and SAP Mobile Platform the technologies that comprise our orchestration framework you can set up processes to span different applications and access points. Think about the salesperson that uses the SAP Sales OnDemand mobile app on an ipad. All relevant data about each customer, which is stored in the on-premise back-end system, is instantly available and helps the salesperson make the right proposal and offering. After a sale is done, they can use an ipad or smartphone to connect immediately with the company s back-end SAP ERP application and confirm in real time that the order has been transacted. 11 / 111

12 1.2. SAP Solutions for Industries and Lines of Business The order is then processed in the company s on-premise system and credited to the salesperson s quota. Typically in such business scenarios, a vast amount of data needs to be processed in seconds. This is where SAP HANA comes into play. The breakthrough in-memory technology moves data from disk to local memory so that the results of complex analyses and transactions are available at your fingertips and business decisions can be made without delay. One example in which the power of this combination supports processes for specific lines of business is the new SAP 360 Customer solution. This is our first solution that specifically orchestrates all of our innovations from across the five categories in one solution delivering value for sales, marketing, and customer service. This solution harnesses the power of in-memory computing, cloud, enterprise mobility, and collaboration. It allows organizations to engage with their customers beyond traditional customer relationship management. The need for continuous improvement across the business to better serve the customers, reduce operational risk and costs, or collaborate with suppliers challenges all lines of business to work together in unified processes and to rapidly invent, adopt, and deploy new business practices that seamlessly integrate into these processes. To address these needs, we offer a solution portfolio for 11 lines of business: Marketing Sales Customer Service Procurement Supply Chain Management Manufacturing R & D and Engineering Information Technology Finance Human Resources Corporate Strategy and Sustainability PREPACkaged BEST PRACTICES SAP Rapid Deployment Solutions SAP Rapid Deployment solutions 5 allow you to adopt SAP innovations simply, quickly, and at a low cost. They combine preconfigured software and engineered services with content, including best practices, templates, tools, documentation, and business-user enablement, to fulfill specific business requirements. The solutions are based on proven business best practices drawn from an extensive ecosystem of customers and qualified partners. Ready to run in typically 12 weeks or less, 6 these solutions help lower the total cost of implementation (either as stand-alone or as part of a bigger project), and give you immediate and tangible business value. 5. For more information, see or (logon to SAP Service Marketplace requires user name and password; new users can register at 6. Estimated implementation times only. Actual implementation time depends on customer situation and requirements. 12 / 111

13 1.2. SAP Solutions for Industries and Lines of Business Existing and new customers can benefit from SAP Rapid Deployment solutions. These packages combine one or more applications to build a comprehensive solution landscape, often complemented by customer-specific customizing, interfaces, and so on. Existing landscapes can be extended using SAP Rapid Deployment solutions. By having a holistic, integrated solution approach for consistent business process evolution, you can choose your preferred start option and incrementally extend your solution while maintaining the integrity of your IT landscape. For many solutions, migration packages are available to quickly move to the latest release or to quickly benefit from latest innovations, including SAP HANA. You can also choose from various deployment options on premise, on demand, hosted (in the cloud), and on mobile devices to best support the adoption of innovation. The cloud-based quick-start service allows customers to begin a project in the cloud by providing a personal, preconfigured system. Consequently, you can start even before you have completed infrastructure and hardware setup. When the customer is ready, the project can be brought to the final production environment for a physical or virtual on-premise or cloud setup. Personalized, preconfigured systems in the cloud are also available to evaluate the solution even before the purchase decision has been made. More than 150 SAP Rapid Deployment solutions are available now for all product categories, including our latest offerings, including the SAP 360 Customer solution, as well as mobile, sustainability, and analytics solutions. More solutions will follow for example, SAP ERP powered by SAP HANA, planned to be available in Q2/2013. They will cover best practices for functional areas of responsibility, including sales, marketing and service, manufacturing, product development, procurement, finance, supply chain management, human resources, and IT. The solutions are also available for a number of industries. With new solutions being released every quarter and available through various channels, you can find the right solution to meet your unique business needs. Some of the SAP Rapid Deployment solutions already available include: SAP CRM powered by SAP HANA rapiddeployment solution Rapid database migration of SAP NetWeaver BW to SAP HANA SAP HANA Commodity Risk Analytics rapiddeployment solution SAP Demand Planning rapid-deployment solution SAP Loans Management rapid-deployment solution SAP Treasury and Risk Management rapiddeployment solution SAP Employee and Manager Self-Service rapid-deployment solution SAP HANA Operational Reporting rapiddeployment solution SAP Mobile Apps and Infrastructure rapiddeployment solution SAP HANA Financial Reporting for Banking rapid-deployment solution SAP Shopper Insight rapid-deployment solution 13 / 111

14 1.2. SAP Solutions for Industries and Lines of Business SAP Business All-in-One Solutions SAP Business All-in-One solutions 7 are powerful industry-specific enterprise resource planning (ERP) solutions available to midsize companies or fast-growing small businesses, supporting integrated processes that cover the complete business lifecycle. With SAP Business All-in-One solutions, companies are enabled to drive better business growth, build and maintain operational excellence, and optimize financial performance. Deployed primarily on premise, but also available as a hosted option and via subscription, industryspecific SAP Business All-in-One solutions are offered by qualified partners in more than 55 countries. These solutions can be configured to meet the business requirements of midsize companies in any industry and can be efficiently enhanced by adding specific cross-industry packages. SAP provides the deployment tools and methodologies that partners need to deliver fast, predictable implementation with low risk, low cost, and rapid time to value. In addition, our partners develop, offer, deploy, and support qualified SAP Business All-in-One partner solutions. Often provided as defined-scope implementations supported with consulting services, these solutions fulfill companies industry-specific requirements. SAP Business All-in-One solutions are: Highly scalable and based on proven technology The solutions are built on the same proven SAP ERP software and flexible SAP NetWeaver technology platform trusted by the largest enterprises. You can start with what you need now and adapt and scale your solution as your needs change. Designed to deliver an intuitive, integrated, and efficient user experience With a rich, unified, and personalized user environment featuring role-based navigation, these solutions provide easy access to the key business content that your employees need to execute tasks and transactions quickly and efficiently. Affordable, with predictable time to value Configuration and deployment tools and proven methodologies enable a fast, predictable implementation with low risk, low cost, and rapid time to value as well as ongoing maintenance and support. Comprehensive The solutions are robust and handle demanding local and global business requirements in more than 55 countries. They provide fully integrated business functionality to streamline core business processes and include embedded analytics software and access to standard reports to give you visibility into the performance of all business operations. Industry specific Functionally rich, these solutions come with built-in support for industryspecific best practices, equipping you with the methods of the best-run companies in your industry and with the flexibility to support your own unique practices. 7. For more information, see 14 / 111

15 1.2. SAP Solutions for Industries and Lines of Business Content Packages Content shipments consist of a collection of objects, templates, or data that deliver predefined configuration settings, process models, and support for best practices for all elements of our product portfolio. Content shipments help companies integrate applications, including third-party software, and implement functionality in their IT landscapes. In general, the shipment schedule and maintenance durations coincide with those of the application shipment they are designed for. The following types of content shipments are defined: SAP Best Practices packages Content for the SAP Solution Manager application management solution Enterprise Services Repository content SAP NetWeaver Portal component content SAP NetWeaver Business Warehouse (SAP NetWeaver BW) application content SAP Rapid Marts packages SAP Data Quality Management software content Starter kits for the SAP Business Planning and Consolidation, SAP Financial Consolidation, and SAP Process Control applications SAP Knowledge Acceleration software content Content as a service with two solutions supporting global environment, health, and safety (EHS) regulatory compliance for all industries that use, manufacture, or sell products containing hazardous substances: SAP EHS Regulatory Content packages SAP EHS Regulatory Documentation OnDemand content service In-memory accelerators and in-memory analytic content Influencing SAP Solutions We will continue to create and evolve our products and solutions to help you run your business better. Direct input and feedback from our customers and user groups is essential for us to validate market trends and product spaces, specify and test new versions of our software, and improve the solutions in productive use. To structure the input and feedback, we run three major programs (see Figure 3). Figure 3: Influencing SAP Solutions Improvement Today's solution Customer Connection Improvements Innovation Planned solution Customer Engagement Initiative Next products and solutions Vision Future directions Executive Advisory Councils Strategic concepts 15 / 111

16 1.2. SAP Solutions for Industries and Lines of Business The Customer Connection program is directed at incrementally enhancing and improving the products and solutions our customers are using today. It offers customers the opportunity to suggest small enhancements to products and solutions in mainstream maintenance. SAP user groups and special-interest groups collect and submit improvement requests in jointly-defined focus topics. Improvement requests that are supported by a significant number of customers are then evaluated by our development team. Improvement requests that are selected for development are typically delivered through the SAP Notes service or support packages. This allows customers to deploy the incre mental improvements independent of enhancement package schedules. More information on Customer Connection is also available online on SAP Service Marketplace at 8 Executive Advisory Councils are organized by industry or strategic topic. SAP invites customers and thought leaders to discuss and provide input to business and technology trends and their anticipated impact on our customers businesses. This guidance helps us direct future product and solution investments to the areas in which our customers can gain the best business benefits from innovative products and solutions. More information on opportunities for customers to influence SAP is available online on SAP Service Marketplace at 10 The Customer Engagement Initiative (CEI) is a structured approach for close, end-to-end collaboration between customers and SAP teams during the full development cycle for planned products and solutions and new releases or enhancement packages. CEI offers an opportunity for customers to influence SAP software development in collaboration with their peers. This helps us create products and solutions that are intended to meet our customers needs, reflect best business practices, and realize process and technology innovations. More information on CEI is also available online on SAP Service Marketplace at Logon requires user name and password; new users can register at 9. Logon requires user name and password; new users can register at Logon requires user name and password; new users can register at 16 / 111

17 1.3. SAP Software Products PRODuCT STRATEgY And PRODuCT PORTfolio SAP s product and technology strategy is focused on our innovation around SAP HANA, mobile apps, and the cloud. We deliver a timeless software architecture that offers greater business value and innovation without disruption to our customers all with a superior user experience. As the IT industry undergoes a structural shift away from investments in hardware toward increased investments in new software-based innovation particularly in the areas of cloud, mobile, and in-memory computing SAP is at the forefront of accelerating that change. Our strength lies in offering carefully orchestrated solutions that support end-to-end business processes and allow process monitoring and analytics that work across different deployment scenarios without sacrificing consistency. To help our customers stay ahead, we have developed a portfolio strategy that consists of synchronized investments in five interconnected market categories: Applications, Analytics, Cloud, Mobile, and Database and Technology. Our foundation is SAP HANA, a revolutionary in-memory platform, which is completely disrupting traditional database technology, simplifying and collapsing complex and expensive IT architectures. The platform helps customers access and deliver information at unprecedented speeds. Our goal is to deliver immediate value to organizations and people everywhere by expanding our product portfolio with innovations that maintain maximum consistency, structured along these five market categories (see Figure 4). Our strategy for the five market categories allows you to take advantage of new technologies and deployment models, such as mobile or cloud computing, but still reap the benefits of standardized, integrated software with best practices that are specific to your industry and line-of-business needs. In doing so, you and your partners may optimize your respective value-to-cost ratios and user experience. You can choose and quickly deploy the solutions that suit your businesses best, including on demand, on premise, and on mobile device all working together natively as one. In the following sections, we describe in detail our product strategy and product portfolio involving each of the five market categories. Figure 4: Aligning Our Portfolio for Customer Success SAP Software Products Cloud Applications Analytics Mobile Database and Technology 11 lines of business 24 industries Products Solutions Customer value Services and partners Go to market 17 / 111

18 1.3. SAP Software Products Cloud Strategy Our acquisitions in 2012 of SuccessFactors, an SAP company, and Ariba, an SAP company, have allowed us to combine powerful assets from all three companies including innovative solutions, content and analytics, process expertise, access to a robust business network, and enterprise mobility to offer one of the most comprehensive cloud computing portfolios on the market. Most importantly, in order to avoid a rip and replace approach to the cloud, we offer customers the opportunity to deploy your cloud, your way. Whether the requirement is a full cloud suite or a selective cloud strategy, SAP offers a broad set of deployment models and migration services that will enable customers to move to the cloud based on their respective business priorities. Our cloud strategy comprises four focus areas: cloud applications, cloud platform, business network, and infrastructure. This four-part approach delivers the next generation in cloud computing to help customers unlock the new possibilities and benefits of the cloud. Our cloud applications are built to empower people through beautiful and relevant experiences that are mobile, social, and glocal enabling global business processes that account for local requirements. Because these applications are in the cloud, they are fast to deploy, intuitive, and completely updated with new innovations. And because major investments in hardware and software are no longer necessary, small businesses can now afford the same applications used by larger competitors and a large enterprise can become as agile as a startup. The acquisition of SuccessFactors in 2012 allowed us to leverage our business process know-how with the cloud expertise and sheer pace of innovation that is built into SuccessFactors DNA, making SAP a major player in the cloud. We are now equipped with nearly 5,000 cloud experts and serving 16 million users and counting. We also gained immediate strength in the fast-growing segment of cloud-based applications for people and talent management a top priority for CEOs globally. The combination has created a cloud powerhouse. With the acquisition of Ariba in 2012, SAP is fueling an entirely new way of doing business. By combining our powerful cloud applications and platform with the Ariba Network, we enable the networked enterprise, empowering businesses to: Connect to customers, suppliers, and partners to facilitate collaborative commerce processes, such as sales, procurement, and finance Become more efficient through cloud-based applications that automate and enable shared processes, such as sourcing, invoicing, and payment Become more informed through community intelligence, market insights, benchmarking, and best practices for better performance and decisions And most important, we will use the foundation of our cloud applications and network to deliver new solutions that are only available in a networkor community-based model and create value across the enterprise. More than 195,000 SAP customers will have instant access to Ariba cloud-based applications and a network of 730,000 companies, and this is expected to grow to more than 1 million companies in / 111

19 1.3. SAP Software Products We provide customers the choice of multiple products that are loosely coupled together. We provide a consistent user experience and process integrity across our cloud product portfolio. A cornerstone of our cloud strategy is that customers can adopt these line-of-business solutions at their own pace while we help ensure that all of them work together as a loosely coupled suite. Besides the loosely coupled suite of lineof-business solutions, we offer the SAP Business ByDesign solution as a full suite solution to midsize companies and subsidiaries. For small businesses that have a demand for a full suite, the SAP Business One application is delivered in the cloud (SAP Business One OnDemand solution). 11 We are committed to delivering an open platform and integration technology to allow the SAP ecosystem and partners to easily extend SAP solutions, including integration to all on-premise SAP products Product Portfolio Fueled by the recent acquisition of SuccessFactors and Ariba, SAP provides a comprehensive and innovative set of cloud-based solutions. With integration between SAP's cloud and your existing on-premise software, you can deploy any and all of our cloud applications at your own speed, and in your own way. The following sections provide our four focus areas for cloud. Cloud Applications Count on SAP together with SuccessFactors and Ariba for the one of the most comprehensive cloud computing portfolio on the market. Our cloud applications are built to support your end-to-end business processes and manage your most important assets. We offer cloud applications for people, money, customers, suppliers, and social collaboration. And, for the first time, small businesses can now afford the same suite applications used by larger competitors and a large enterprise can become as agile as a startup. To help solve one of the greatest challenges in business today helping individuals bridge the gap between strategy and results we offer cloud applications for people, such as those found in SuccessFactors Business Execution Suite. These applications provide support to align your workforce with your business strategy and get your people working on the right tasks as well as help optimize performance across your organization as you find the right people and help them succeed. Cloud applications for money focus on managing your organization s cash flow and financials (for example, the SAP Financials OnDemand solution); cloud applications for customers are focused on the success of customers and the sales representatives who work with them every day (for example, the SAP Sales OnDemand solution). 11. Sold and serviced exclusively by SAP partners. For more information, see 19 / 111

20 1.3. SAP Software Products To help enable cost savings through sophisticated sourcing, comprehensive contract management, and superior supplier management, we also offer cloud applications for suppliers (for example, Ariba Spend Visibility, Ariba Collaborative Sourcing, and Ariba Procurement OnDemand). To empower employees and connect with customers and partners, we offer collaboration in the cloud. Cloud applications for social collaboration deliver a secure, social foundation across your entire technology landscape, so your employees, customers, and partners can collaborate right in the context of where they work (for example, the SAP Jam social network platform). SAP's cloud also offers full suites for small and midsize businesses as well as for subsidiaries of large enterprises. These solutions are designed to support end-to-end business processes for small businesses and midsize companies, as well as subsidiaries of large enterprises (for example, SAP Business ByDesign 12 and SAP Business One OnDemand 13 ). Cloud Platform We provide a cloud platform intended to allow developers to quickly build highly scalable applications that leverage embedded analytics and the massive speed and scale of SAP HANA. They are intended to deliver impactful experiences, including instant mobile access, that delight users and meet your business needs (for example, the SAP HANA Cloud platform). Cloud Infrastructure A large portion of our customer base has invested significantly in on-premise SAP software landscapes. These landscapes run mission-critical applications and are often heavily customized to meet specific customer requirements. A centerpiece of our customer-centric vision for cloud computing is to protect these existing investments and minimize disruptions while providing the benefits of cloud economics and management. We achieve this, for example, with our virtualization and cloud management software (for example, SAP NetWeaver Landscape Virtualization Management software). Business Networks Businesses are more reliant on their network of partners than ever before. Due to increasing complexity of networks and accelerated speed of business, buyers and suppliers are facing challenges of increased costs, operational discontinuity, and constrained growth. A business network needs to improve interenterprise collaboration and has to be comprehensive, functional, and open creating win-win outcomes for all trading partners. Close to 1 million companies are now connected to the Ariba Network more than any other business network on the planet. And they are using it to collaborate in new ways that help drive unprecedented levels of productivity in their sales, procurement, invoice, and payment processes. With the introduction of our innovations in social, mobile, cloud, and the in-memory technology of the SAP HANA platform, companies of all sizes across industries will be able to drive interenterprise collaboration and even higher levels of efficiency and insights. And, most importantly, we will use the foundation of our cloud and 12. For more information, see Sold and serviced exclusively by SAP partners. For more information, see 20 / 111

21 1.3. SAP Software Products on-premise applications in combination with the network to deliver new solutions that are only available in a network- or community-based model and that create value for all trading partners. Within the business network and based on the inter-enterprise collaboration in the supply chain, buyers and supplier demand and gain extended reach, efficient integration, effective collaboration, and better visibility and insight. Buyers and suppliers can participate in the largest global business network to achieve these goals while extending their existing business applications and processes to their partners Applications Strategy Our innovation strategy for applications is based on a few simple imperatives that focus on customer value: we deliver relevant evolutionary and breakthrough technology as well as business innovations along a clear road map without large and disruptive upgrades. The road map for SAP Business Suite combines two tracks: evolution of existing functionality and use of new technology (SAP HANA, mobile, cloud) for breakthrough innovation. Evolutionary innovation takes place in the following areas: User experience Easier to consume for existing deployments (for example, using SAP NetWeaver Business Client software and floor-plan manager) and superior user experience for new developments (for example, with HTML5 and embedded 3D visualization) Business processes Enhanced functionality based on customer-driven innovation and incremental improvements for which transparency is provided on SAP Service Marketplace at 14 Complexity reduction Reduced TCO (for example, through providing additional deployment options for existing applications or rapid-deployment solutions for implementation projects) We plan to continuously improve our on-premise SAP Business Suite core applications by evolving into leaner architecture, superior usability, lower TCO, more functionality, and faster adoption, thus delivering innovation without disruption. We intend to have breakthrough innovation available in the following areas: To benefit from our latest advancements with SAP HANA, we run SAP NetWeaver BW, SAP Business Suite, and innovative applications on SAP HANA. To extend the functionality of SAP Business Suite on mobile devices, we plan to develop mobile apps on top of the applications. You can then deploy functions, processes, and services of SAP Business Suite to smart devices creating synergies between the process and data integrity delivered by SAP Business Suite and the flexibility and user-friendliness of smart devices. To enhance functionality in hybrid landscapes, we intend to offer on-demand and on-premise orchestration. 14. Logon requires user name and password; new users can register at 21 / 111