HYOUNG, WON JOON Innovate to Lead

Innovate to Lead HYOUNG, WON JOON President & CEO SAP Korea 10 April 2012

© 2012 SAP AG. All rights reserved. 2

40 Years of SAP Innovation Journey

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€ B

illio

ns Revenue

SAP R/1

SAP R/2 Global Launch

SAP R/3 1st Inflection Point

SAP Business Suite

Business Objects Acquisition

Sybase Acquisition

HANA 2nd Inflection Point

SuccessFactors Acquisition

20

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4 Exabytes of unique information

in 2011

70% of people in China access

Internet with handset

>500 million social media

members

>1,000 + regulations and

policies

Double

Digit budget cuts

Mega Trends Transforming Business Today

$241B global cloud market

by 2012 *

* http://www.simplysecurity.com/2011/04/29/forrester-cloud-market-to-hit-240-billion-by-2020/


Wrenching Change, Faster Than Ever Before


Innovation Helps You Create Your Moment with Your Customer

Engaging Customers

Growth via New Markets Creatring new Business Models

New Products


Innovation Enablers The Era of In-Memory Computing

There has been tremendous evolution on Technology for the last 20 years

개선 수준 2010 1990

16M Addressable

Memory

250x 5 MB/$

0.02 MB/$

Memory Size

143x 7.15 MIPS/$

0.05

MIPS/$

CPU Speed

Evolution of Technology

130 MBPS

5 MBPS

Disk Data Transfer

Rate 25x

100x 10 Gbps

100 Mbps

Network Speed

1TB 216x

1 100 10,000 1,000,000

CPU Cache(L3)

Main Memory

Flash Memory

Disk

Nano second

Data Access Speed

> 1milli second

1 micro second

100ns

20ns


Innovation Enablers HANA – New Paradigm of Enterprise Applications

Operational Database, Data Warehouse, and Applications will be merged into one (HANA) on top of in-memory computing technology

BICS SQL MDX SQL

SAP In-Memory

SAP BusinessObjects™ Other applications

SAP NetWeaver BW

SAP Business Suite

3rd Party

Row and Column Store

Data Base

Real–Time Replication Services

Data Services

In-Memory Computing Engine

Calculation and Planning Engine

Modeling Studio & BI Client Row/Column Store

Compression

Partitioning

No Aggregate Tables

Insert Only on Delta

SAP SW Technology Innovations


SAP Driving Innovation: PROCESSES

Systems of Record

“Data In”

Business Process


SAP Driving Innovation: INFORMATION

Business Analytics

Systems of Engagement

Business Process

“Data In” “Info Out”

Systems of Record


Collaboration

SAP Driving Innovation: INFORMATION

Business Analytics


Business Process


Systems of Record


Collaboration

SAP Driving Innovation: CONSUMPTION

Mobility

Business Analytics



Business Process

Systems of Record


Collaboration

Data – Past State Issues: Latency, High Cost, Complexity

Business Analytics


Systems of Record Systems of Engagement

Business Process

Data Mart

Operational Data Stores

DB2

Oracle Warehouses

BW

Teradata

Unstructured Data

Analytical Stores

BIG DATA

Mobility

OLAP Data Mart

Data Marts


Collaboration

Business Analytics



Data – Current State Benefits: Speed, Low Cost, Simplicity

Business Process

Operational Data Stores

DB2

Oracle Warehouses

BW

Teradata OLAP

Unstructured Data

Analytical Stores

BIG DATA

Data Mart

Mobility

Data Mart

Sybase ASE

Data Marts

SAP HANA Database


Collaboration

Business Analytics



Data – Future State Benefits: Accelerate Speed, Low Cost, Simplicity

Business Process

BIG DATA

Mobility

SAP HANA Database


ERP On ASE Benefits

Optimized Database Optimized for SAP

Applications and NETWEAVER Platforms

Integrated management for applications and DB through standard SAP tool

TCO Reduction Predictable TCO with

lower license and maintenance cost

No additional support fee for DB

Reduction of IT Stress Single policy by a single vendor

Synchronization of product life cycle between SAP applications and DB

Simultaneous certificate on Sybase ASE for new SAP applications


1. Groundbreaking Innovation with HANA How to leverage HANA?

1 Bottleneck areas in current process

2 Abandoned areas due to IT constraints in the past

3 Brand new areas we never tried – Out of the box thinking

90 trillion Data combinations analyzed in less than 10 seconds

360 million Records analyzed in 67 seconds – 1280 times faster

200x Faster operational financial reporting


1. Groundbreaking Innovation with HANA Applications on HANA

SAP Finance and Controlling Accelerator

SAP Customer Segmentation Accelerator

SAP CO-PA Accelerator

SAP Trade Promotion Management

SAP S&OP on HANA SAP Planning for Retail

SAP Supplier Infonet SAP Dynamic Cash

Management SAP MM Accelerator

SAP Smart Meter Analysis SAP Demand Signal

Management Customer Value

Intelligence


2. Real Time Business Insight with Analytics Answers on the go

OP

ER

AT

ION

S l H

R l F

INA

NC

E I

IT

I S

AL

ES

l M

AR

KE

TIN

G

MANUFACTURING l RETAIL l HEALTHCARE l BANKING l UTILITIES l TELCO I PUBLIC SECTOR

Tom Davenport International Institute for Analytics

How and why

did it happen?

What is the risk if it

does/doesn’t happen?

How do you prevent /

ensure it happens again?

What

happened?

What is

happening now?

What will

happen?


2. Real Time Business Insight with Analytics Predictive Analysis – 2nd Wave for Big Data Era

Solution vendor dependent approach (SPSS, SAS) – no industry standard

High maintenance cost and limited resources for implementation

Slow performance (store and analysis) and limitation for Big Data

Open Source-“R” based industry standard

Easy to deploy and easy to maintain

Much faster performance due to in-memory and Big Data handling capability due to Hadoop and in-memory database

As-Is To-Be

Data Mart

Data Generation BI

Mining Engine

Report

Dashboard

Master Meta info

HANA Database

BusinessObjects

Data Mart

Mining Engine (R/PAL)

BI / Report / Dashboard

Metadata

Master Data

SAP Predictive Analytics


Challenges

Forecasting

Key Influencers

Trends

Anomalies

Relationships

Google Update ILI(influenza-like-illness) index by region based on analysis of search statistics, which is faster and more accurate than state healthcare department information

Twitter, Facebook Identify key persons and community type by analyzing the consumption path of SNS data. It helped to grow social media advertisement market to 6 billion dollar by 2011

Walmart Utilizing more than 1M transaction records per hour to figure out consumption pattern and trend. The cumulated daat size was 2,500 TB by 2008

Amazon Secure 30% of total revenue

through recommendation algorithm based on analysis

on purchase transaction relationship

Volvo Gather data generated

by sensor during operation. Captured

defect at the sales of 1,000 unit compared to

500K unit in the past

2. Real Time Business Insight with Analytics Predictive Analysis – Use Cases

Predictive analysis is now widely adopted by various areas in addition to traditional areas such as demand forecasting and manufacturing quality management


3. New Generation HCM for Smart People Cloud Based Platform for Talent Management

Jewish Talent Management

Talmud

• Psychological/Cultural Heritage

• Talent Management Bible(Solution) for successful Jew across the world

Cloud Based Talent Management Solution

• Cloud Platform for Human Capital Management

• Efficient Strategy Execution and Performance Management thru integration/sharing/commu-nication New Generation

Platform

Hevruta

Talent Management - Methodology - Foundation


3. New Generation HCM for Smart People Cloud Based Platform for Talent Management

SuccessFactors BizX Platform

Security Scalability Extensibility Integration

Employee Profile

Goal Management

Workforce Planning

Performance Management

Comp. Simulation

Successor Plan

Dashboard Analytics

Report

Recruiting CDP Jam Social

Learning

360’ Evaluation

Calibration Competency Management


4. Build Competitive Process with Platform Create World Best Process with Global Business Process Platform

In House Package

Flexibility

Local Practice

Unique Characteristics

Initial Low Investment Cost

Robustness

Global Practice

Continuous Maintenance

Low TCO

Composite Application (Business Process Platform)


4. Build Competitive Process with Platform Global Market Requires Global Standard SW Technology

“Global Standardization of Automotive Parts Industry= Global Standardization of SW Platform

Integration

Easy to Maintain

Increased Reuse

Engine

Chasis

Mission

Upper Body

Audi A3

Volkswagen Jetta

Volkswagen Golf

Audi A7 Governance

Improved Collaboration

•Key Parts Commonality

•Global Standardization

SW reproduction thru IT platform standardization

Global IT Platform Share and Standardization

Grow SW Export and Improve A/S Quality


5. Build Smart Workplace with Mobility Change the Way of Working – Digital Work Style

Field Agent Applications (Plant Maintenance, Service Agent)

[Wave 1]

[Wave 2]

[Wave 3]

Work productivity improvement (email, approval workflow)

Way of work innovation thru advanced apps (core workflows, mobile S&OP, mobile BI, etc)

# Considerations

1 Supported Device Types /OS

2 Strategic Alliance with Global

Handset Manufacturer

3 Integration with Back End

Applications (ERP, LOB Solutions)

4 Health of Ecosystem

5 Global Penetration Opportunity


5. Build Smart Workplace with Mobility E2E Mobile Solutions Provider

• Mobile Apps for SAP Business Suite (customization supported)

• SAP Partner Apps

• Customer Apps

• Flexible Platform supporting multi-OS

• One source, Multi Device

• Web / Native / Hybrid

Mobile Apps

MDM MEAP

Sybase Unwired Platform

#1 Mobility Solution Provider

Alliance with Manufacturer

Support Various OS

Unified Solutions

Key Differentiators

• E2E life cycle management with strong security control

• Strategic Alliance with Apple, Samsung, HTC, Motorola (kernel level management)

Ready-Made Applications

Flexibility and Sustainability

Mobile Lifecycle Management

http://dryicons.com/icon/coquette-icons-set/accept/




5. Build Smart Workplace with Mobility From Korea to Global Market!

SAP App (Source Code Provided)

SAP Store (150+ App -

Q2 2012) + SAP Partners

Transfer to Sales Rep

Contract & Implementation

20%

80%

SAP Mobility

Community

: 1M Developers

Discover & Experience

Marketing thru Various

Channels


SAP’s 5 Innovation Category Instant Value to People Everywhere!

Go to Market

PRODUCT VALUE SOLUTION

Cloud

Database and Technology

Mobile

Analytics

Applications

11

Lin

es o

f B

usi

nes

s

24 Industries

Powered by SAP HANA

Thank you

SAP Korea


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HYOUNG, WON JOON Innovate to Lead

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