Web 2.0: Creating Opportunities for SAP and Your Customers...Page 3 Executive Summary: Web 2.0 and...

Web 2.0: Creating Opportunities forSAP and Your Customers

May 2008

A. Executive SummaryB. From Web 1.0 to Web 2.0C. SAP Harnessing Web 2.0

1. Communities of Innovation2. SAP Technologies

D. Value Proposition for Your Customers – And You

Agenda

Executive Summary: Web 2.0 and SAP

Web 2.0 Primer

Web 2.0 is a set of economic, social, and technological models currently driving the creation of anew online paradigm

Technology models: New technologies like Mashups and blogs to distribute means ofproduction and enable multi-way communicationSocial models: Re-defines business processes and virtual community interactions (Eg. SocialNetworks like Facebook)Economic models: New economic models like advertising aftermarkets and pay for contentsites (Eg. Google and Apple iTunes)

SAP Harnessing Web 2.0

Applying Web 2.0 concepts to enterprises is leading to an emerging “Enterprise 2.0”;SAP is harnessing Web 2.0 technologies in two ways

Communities: SAP supports an expanding SAP ecosystem through communities of innovationwhere customers collaborate to improve ROI and accelerate innovationProducts and Solutions: SAP has harnessed Web 2.0 concepts and technologies to createproducts that enable customers to address their core challenges and respond to Web 2.0 trends.

Value Proposition for your Customers – and You

Value for your Customers: accelerate innovation, reduce costs and enhance ROIValue for SAP Field Sales: demand generation, deal execution and customer satisfaction




Agenda

Web 1.0One-way Communication from Content Owner

One-way communication

Pretty postcards

“Brochure-ware”

Internet as just another channel

What was it?

People want human interaction

The Internet is NOT just another channel forbroadcasting

Relatively expensive to produce content

No real individual level monetization of web

Why did it die?

Drivers of Web 2.0

Opportunity Means

141187

233

286

338

386

433

0

50

100

150

200

250

300

350

400

450

500

2004 2005 2006 2007 2008 2009 2010

Worldwide Broadband Adoption(Millions of Households)

Sources: Morgan Stanley, Deloitte Research, IBM, Bear Stearns, Nielsen, Netflix, ScreenDigest, Borsch, Future of Media, Google, eMarketer Research, SAP VE Analysis

Web 2.0 developed because of a confluence of consumer-led factors.

Motive

Over 1 billion people now online

Broadband connections nowdominate

> 50% of US Internet connections

Cost of production has decreased

“Excite (circa ‘96) took $3M to getfrom idea to launch.JotSpot, acquired by Google(circa ‘06) took $100,000.” – JoeKraus, Founder

Online advertising aftermarket &pre-built eCommerce solutionsenable individuals to quickly geteconomic value

$2,205

$989

$483

$236$115 $56 $2

$-

$500

$1,000

$1,500

$2,000

$2,500

2005 2006 2007 2008 2009 2010 2015

Costs to Store 10,000 hrs ofVideo Content ($USD)

0

500

1000

1500

2000

2500

3000

3500

2006 2007 2008 2009 2010

Growth of New Ad Models($M Revenues)

User Generated Content Ads

Behaviorally Targeted Ads

Social Network Ads

Web 2.0Multi-way Communication

“Web 2.0 is a set of economic, social, andtechnology trends that collectively formthe basis for the next generation of theInternet ...”

– Tim O’Reilly

What is it?

Technology Models: To distribute means ofproduction and enable multi-waycommunication (Eg. Mashups and RSS)

Social Models: Re-defines businessprocesses and interactions (Eg. Wikis, SocialNetworks)

Economic Models: New business modelsthat in turn generate demand fortechnology(Eg. Pay for content Apple model)

What does it include?

1. Technology Models

New technologies distribute the means of production & enable new social interactions.

Blogging

Simple online word processing technology enablinganyone to be an author.A blog (an abridgment of the term web log) is awebsite, with regular postings of text and multi-mediacontent.

Video Sharing Advances in streaming technology enabling sharing ofvideo content

SyndicationRSS (Really Simple Syndication) is a family of Web feedformats used to publish frequently updated content suchas blog entries, news headlines, and podcasts

MashupsWeb application that combines data from more than onesource into a single integrated toolExample: Location data from Google Maps + real-estatedata from Craigslist = unique real estate mapping service

Tagging Multi-attribute tagging technology enabling people to jointlycatalog information

2. Social Models

New social models reconfigure existing business models and processes.

ProfessionalNetworks

Virtual communities that enable business professionals tonetwork and collaborate by title, industry and businessinterests so that they can discuss interests, stay informedand share knowledge

Social NetworksWeb-based services that provide a collection of ways forusers with common interests to interact, such as chat,messaging, email, video, voice chat, file sharing,blogging, discussion groups

WikisCollection of web pages designed to enable anyone whoaccesses it to contribute or modify content, using asimplified markup language. Group content editingreconfigures team collaboration processes

ForumsWeb application for holding discussions and posting user-generated content. Forums enable group discussion andreconfigure support processes

3. Economic Models

New economic models generate demand for additional technology.

Online AdvertisingOnline advertising enables a search after-market andcreates demand for new ad managementtechnologies

Pay for Content Profitable low-cost content distribution createsdemand for new media creation technologies

Content AggregationValue shifting from content creation to contentaggregation creating demand for new relatedtechnologies like group filtering

Monetizing thePlatform

Adding APIs to core infrastructure enables newbusiness models and creates new technology mash-up opportunities

Online-OfflineHybrids

Merging online & offline processes to enable efficientmass customization of traditional consumer products

PredictionMarkets

Model: ForumsOppty: Predict book salesby analyzing online userbehavior and dataChallenges: technologyintegration, responding toemerging markets fast

CorporateBlogging

Model: BloggingOppty: Give employees avoice to sense needs, andharvest good ideasChallenges: loss ofcontrol, informationsecurity, validity ofinformation

TeamCollaboration

Model: WikisOppty: Transform internalcollaboration for > 2000usersChallenges: onlinevandalism, informationsecurity, groupthink

From Web 2.0 to Enterprise 2.0

The application of Web 2.0 modelswithin the enterprise to tackle corebusiness problems.

What is it?

Technological Challenges: IntegratingWeb 2.0 technologies with legacyenterprise systems, enabling secureconnections outside the enterprise

Organizational Challenges: Definingroles, rules, & responsibilities aroundthe access, dissemination, and validityof information

Strategic Challenges: Aligning IPcreated by networks and partnershipswith existing legal & contractualframeworks

What is different?

Applying Web 2.0 models to the enterprise leads to both opportunities and challenges.

Agenda




The SAP Ecosystem Features Web 2.0 BasedMulti-Way Communication

Industry-Focused Excellence• Comprehensive , integrated, & industry –

specific solutions with partners

2

3

1

Community-Powered Results• Role- and task-based community

engagement model that quickly connectsyou with the resources you need

Orchestrated Co-innovationIntegrated approach with Partners,customers and individualsAddress entire solution lifecycle fromdevelopment to deployment

Accelerate Innovation

Enhance Returnon Investment

SAP Solutions& Services

SAP Ecosystem

Deliver Breakthrough Results…

Reduce integration costswith pre-certified solutions

Decrease integration riskwith standards-baseddeployments

Cut costs of acquiringknowledge

Innovate ‘at the edge’ of the company

Trusted & relevant partner solutions & services

24x7 access to relevant knowledge & expertise

Rapidly find & deploy diverse resources

…Unique Ecosystem Approach

Web 2.0 Embodied in Community - Powered Collaboration and Orchestrated Co-Innovation

Community Website Wikis, Forums, Blogs, Events

Web 2.0 Manifested in SAP Communities

Web 2.0 community tools improve communication, collaboration, and co-innovation

Ease of Access to Trusted Sources24x7 access to sources of problem resolutionTrusted information from subject matter experts

Cost SavingsReduce costs of support and helpTrain newbies – highly scalable self-serve model

Adoption and EvangelismFaster product and solution adoption and implementationEmpower hundreds of thousands of evangelistsHigher success and satisfaction ratesUsers share best practices and successesOffline events deepen the connection

SAP Developer Network and Business ProcessExpert Communities

Built on the NetWeaver Collaborative Portal

Largest single implementation

Enabling architecture includes web 2.0 tech partners(Jive, Atlassian Confluence and Community Servers)to enable webpages, blogs, forums and wikis

wikis

forums

blogs

events

Growing Communities Deliver Support Co-Innovation Thru Advice and Participation

SAP Community Momentum is Building

All aspects of the SAP community are growing rapidly.

ESC Members

2007

350+

IVN Members

2005 2007

125+

BPX Members

2006 2007

350,000+

Community Size

2003 2007

1,200,000+

35 Community Definition Groups, 7 CommunityAdvisory Groups in Enterprise Services Community(ESC)

>50% of new Enterprise Services Bundles thru ESCprocess

15 Industry Value Networks of customers andpartners co-innovate, delivering preintergratedsolutions

197 Forums; 5500+ Posts a day

Four replies to every query

Queries answered on avg. 17 min

Total Number of Messages (lifetime /ever): 3,387,524

16 BPX Industry Forums & CRM, GRC, CSRforums

Launched SDN Subscriptions

SAP Leveraging Web 2.0 Technologies inSolutions

SAP harnesses Web 2.0 technologies in a variety of ways

Embedding Web 2.0 Technologies Creating Native Web 2.0 Applications Enabling Enterprise Mashups

Example: CRM 2007, BusinessByDesign, …

Flexible Web 2.0 interface enablesfaster deployment and adoption.

Changes perception about SAPusability

Accelerates adoption by users todrive faster ROI

More tightly orchestratedcollaboration

Example: WidgetsLight-weight desktop or online apps

SAP or 3rd parties produced

Mash-up multiple SAP or externaldata sources

Based on Web 2.0 standards

Creates pull for additional SAP userlicenses

17,000+ downloads to date

Example: Master Data MashupMash-up master enterprise data withGoogle Maps for intuitive displays.

Enables new web-services basedapplications that consume enterpriseand web content

Agenda




AccleratingInnovation

Resco empowered new developers to learn SAP NetWeaver Portal inonly two weeks

Siteco received complete, accurate responses to technical questions,often in 1-2 days

Reducing Costs

Stadt Dormund received solutions to more than 50% of IT challengesthrough ongoing SDN participation

Siemens enabled its developers to resolve technical problems 50%faster than through other channels

US Department of Defense saved time and reduced costs by trainingnearly 50 developers online

Gazum solved technical problems 50% faster than with otherresources by leveraging the expertise of other developers on SDN

Improving ROI

Wipro reduced customer application replacement costs 25% byhosting a RexApp on the BPX Community

Colgate-Palmolive eliminated hours of tedious work by using SAPlinkto share ABAP™ code, created in the SDN Community

Communities Deliver Measurable Customer Value

SAP communities accelerate innovation, reduce costs and enhance return on investment

Fiel

d C

all t

o Ac

tion

Call to Action

SDN to resolve implementation and operational issuesBPX for business process best practicesESC for eSOA and services definitionExplore invitations for your customers to IVN and Standards communities

Learn more at www.sap.com/ecosystem/communities

Visit SDN/BPX to see what your customers are talking about atwww.sdn.sap.comBecome active in popular communities relevant to you to refresh your skillsLearn more on web 2.0 : read cluetrain manifesto, net gain and oreilly.com

Reach out to the SAP Community Management team – we want to help youdrive revenueTell us how the SAP communities helped you close dealsBring your customers to Tech Ed 2008 for greater immersionPresent web 2.0 – based products to your customers (e.g. .widgets)

EncourageCustomers toJoin SAPCommunities

Engage in Web2.0

Join theConversation

http://www.sdn.sap.com/

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