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SUGENSAP User Group Executive Network

Update & Report

HERUG DS conference5 November, 2009Freie Universität Berlin

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AGENDA

‘THE EARLY YEARS’(2007-2008)l History in: Bird’s Eye View’l What is SUGENl SUGEN Top 3 issues (2008)

‘ALL TOGETHER NOW’(2009)l Mission, Charter, Core Purposel Who We Arel How We Are Organizedl SUGEN and Global Communities Cooperationl Main Deliverables

’SUGEN Top 3 issues’(2009)l Long Term Product Strategy Charterl Enterprise Support Charter

– KPI measurement– Update on Enterprise Support Charter

l SAP Solutions and Technology Adoption Charter

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SUGENSAP User Group Executive Network

‘The Early Years’2007-2008

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History in: Bird’s Eye View

• Before 2007: majority of international VNSG contacts were of bi-lateral nature (esp. with ASUG and DSAG)

• March 2007: ASUG liaison asks VNSG’s opinion about ‘One voiceof the customer program’

• Summer 2007: Walldorf session working out the details (SAP,DSAG, SAPSA and VNSG)

• December 2007: kick-off of SUGEN during ‘Influencer Summit’(SAPwith analyst’s and SUGEN Leadership team)

• From 2008 onwards: regular F2F meetings (1/2 yearly) and frequentConference Calls with SUGEN Leadership (sub)team andTaskforces

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What is SUGEN ?

• Worldwide network of SAP User Groups• Almost 40 User Groups identified (maturity varies… )• Today 12 are actively involved in SUGEN (growing… )• Shaping SAP’s ‘One voice of the customer program’• Focusing on: strategy, communication between

customer representatives and SAP, best practicessharing

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• AT THE MOMENT: A UNIQUE PHENOMENON IN THESOFTWARE BUSINESS

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SUGEN Top 3 issues –2008

Top 3 issues –2008: report

1. SAP Strategic Direction: with regard to productdevelopment and portfolio Roadmap: Open–Renamed into: Long Term Product Strategy Charter

Reason: NDA clause (still under revision)

2. Enterprise SOA Adoption: Closed–Starter Kit eSOA released

3. SAP Upgrades: Closed–SAP’s original standard maintenance period 4.7 extended until March 2010

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SUGENSAP User Group Executive Network

‘All Together Now’January 2009

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SUGEN: Mission, Charter, Core Purpose

Mission: All Together Nowl Be a powerful, international voice that unites regional User Groups in an open, honest

dialogue between members and SAP that ultimately drives the market towards excellence,innovation and success.

Charterl To be the Global Network of User Groups that will provide a collective view of strategic

issues that need to be addressed by SAPCore Purposesl Create and sustain collaborative bodies that foster the sharing of information, expertise and

experience users and SAP cannot find anywhere elsel Identify strategic priorities and act on programs to advance and apply technology for greatest

gain of the SAP customer communityl Foster international market views including customers’short and long term demand drivers,

major challenges and business imperativesl Guide and inspire SAP in delivering worldwide aligned support for the mutual benefit of the

user communities and SAP

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SUGEN: Who We Are

A united network of 12 User Group Communities across three continents

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US and CanadaASUG

Mexico and CentralAmerica ASUG

Mexico

BrazilASUG Brazil

FranceUSF

Germany,Austria,

SwitzerlandDSAG

NetherlandsVNSG

SpainAUSAPE

SwedenSAPSA

UKSAP UK &

Ireland User Group

AustraliaSAUG

JapanJSUG

Middle Eastand NorthAfricaSUG-MENA

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SUGEN: How We Are Organized

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Mike StokoChairman

SUGEN

Matthias HerzogVice Chairman

Per HögbergVice Chairman

SAPStefan KneisExecutive SAP

Contact

Oliver Hid AridaDirector

Customer Advocacy

PetraZimmermann

Operations Manager

Executive Sponsor (SAP CEO)Leo Apotheker

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SUGEN: Main Deliverables

Main Deliverables:

l Provide consolidated strategic influence priorities and User Group members to workwith SAP to resolve them

l Provide an effective and efficient method for communication among User Groupsand SAP and assure proper documentation of priorities

l Share Best Practices between Users Groups and SAP for the mutual benefit of all

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SUGENSAP User Group Executive Network

SUGEN Top 3 isues2008 2009

1. Strategic Direction Long Term Product Strategy2. Upgrades Enterprise Support3. eSOA Adoption Solutions and Technology Adoption

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SUGEN Top 3 issues –2009

Top 3 issues –2008 (and the transferal to 2009 issues)

1. SAP Strategic Direction with regard to product development and portfolioRoadmap: Open - Long term issue• For 2009 Charter is continued as ‘‘Long Term ProductLong Term Product StrategyStrategy‘‘Charter

1. SAP Upgrades: Closed –original standard maintenance period 4.7 extended untilMarch 2010• During 2008 Charter ‘‘Enterprise SupportEnterprise Support’’was started

2. Enterprise SOA Adoption: Closed –Starter Kit eSOA released• In 2009 new Charter ‘‘SAPSAP SolutionsSolutions andand TechnologyTechnology AdoptionAdoption’’is

started

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Enterprise Support TaskforceCustomer Segmentation for Target Audience

1. Product Release Level (ECC 6.0 –3.1i)§ NetWeaver based platform (ECC 6.0) preferred§ Solution Manager measurement platform

1. Market Segment§ Small/Mid-Size Customers (ca. 50 customers)§ Large Enterprise Customers (ca. 50 customers)

2. Region§ Europe Middle-East Africa –EMEA (35%)§ North America (35%)§ Latin America (15%)§ Asia Pacific Japan - APJ (15%)

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• The content side of this announcement did not get anypublicity at all, here it is:

l SAP ES is an enhanced support offering (justifies price increase, according toSAP)

l Comprises additional services and SLA’s to all customersl SAP ES requires the use of SSM Enterprise Edition (previously available for

MaxAttention customers onlyl As a result all customers can now download this activation componentl Customers are required contractually to implement several functions in SSM in

order to be able to access SAP ES offeringsl SAP ES includes all previous support offerings and several updates

– Continuous Quality Checks– Remote services for technical Risk assessment– As well as continuous improvement– 24x7 support advisory center– SLA’s with SAP possible on priority 1 and priority 2 messages

MANDATORY ENTERPRISE SUPPORT- The story so far: THE CONTENT

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SUGEN KPI Benchmark –Value drivers

Business ContinuityValue Statement:n Availability of Business Process Scenarios

(reduce required planned downtime formaintenance, backup etc)

KPIs:n Increase number of days without an outagen Reduce mean time to resolven Reduce overall incidents

Business Process ImprovementValue Statement:n Efficiency of end-to-end Business Processes

KPIs:n Number of Emergency Changesn Impact of changen Number of failed changes

Innovation/Protection of investmentValue Statement:n Speed of Innovation

KPIs:n On current technology stackn Number of redundant custom code and

objects; functionality available on newerreleases

Total Cost of OperationsValue Statement:n Maximize your Assets

KPIs:n CPU Utilization and “overall power growth rate”n Storage Utilization and growth raten Run & Maintain work required for deploying

support packages and enhancement packages

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The bottom line

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From ‘One voice of the customer’programKPI program

• SUGEN is a unique body in the software industry –noother community around a software vendor does havesomething equivalent in place

• SUGEN KPI program is the next unique phenomenon –never before in history of the software industry asoftware vendor has been willing to make scheduledprice increases subject to the outcome of KPI metrics

• Side effects of the Enterprise Support issuel SUGEN itself received quite a lot of exposure and to a certain extent has become a global ‘brand’l KPI measuring has a positive impact and leverages IT on the Business agenda

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SAP’s Value offering: food for thought

• Both the Dutch as well as the academics tend to be thinking in terms of:– Cheap, cheaper, cheapest

• Avoid penny-wise and pound-foolish ways of thinking– Maintenance fee versus TCO; evolvement to be measured over time with KPI program

• Think of the comparison of a spider web and your IT Landscape– Pull one little thread and chances are good that ‘the whole thing’is affected

• Also think like an auditor (but don’t behave like most of them)– Proactive quality thinking

• Always look at TCO; with Total IT landscape & spendings in mind– The complete picture of total costs

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SAP/SUGEN KPI Program• Suppose 17% maintenance fee = 5% of IT related

TCO

• Then 22% maintenance fee = 6.47% of IT relatedTCO (other cost items assumed to remainconstant)

• Business case OK when SAP Value propositionwill lower all other cost items in maintenancedomain by > 1.47%

– manpower for maintenance/operations– completion of SSM projects etc.

• SAP committed on 30% KPI index increase (=Value increase) over 4-year period for yearlymaintenance increase

• MOST IMPORTANT: SUBJECT TOCONFIRMATION BY SAP/SUGEN KPI PROGRAM

• When this works out well: this could change theglobal software business !

Leading to

Enhancing efficiency

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HERUG DS conference5 November 2009, Freie Universität Berlin

QUESTIONS