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S E R V IC E -O R IE N T E D B U S IN E S S : M Y T H O R R E A L IT ...

S E R V IC E -O R IE N T E D B U S IN E S S : M Y T H O R R E A L IT ...

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SERV<strong>IC</strong>E-OR<strong>IE</strong>NTED BUS<strong>IN</strong>ESS:<br />

MYTH OR REAL<strong>IT</strong>Y?<br />

Dr. Oliver Christ<br />

Director SAP Research (Schweiz)


http://www.youtube.com/watch?v=uQLXDa<br />

FPFsA&feature=related


FROM PRODUCT…


… TO SERV<strong>IC</strong>E


http://www.youtube.com/watch?v=hriAMxCinhg


iTunes<br />

Marketplace for Digital Content<br />

Content<br />

Consumer<br />

Content<br />

Channel<br />

Service<br />

Consumer<br />

Content<br />

Broker<br />

Service Service<br />

Consumer Provider<br />

Common role-specific Interoperable Platform<br />

Innovative Business Model<br />

Content Delivery Platform<br />

© SAP 2007 / Page 8<br />

Content<br />

Provider<br />

Content<br />

Creator


http://www.youtube.com/watch?v=8HhncO6w4Pc


© SAP 2007 / 10<br />

WHAT THE HECK<br />

IS SAP?


GLOBAL<br />

BUS<strong>IN</strong>ESS<br />

TRANSFORMATION<br />

© SAP 2007 / 12


Four Driving Forces<br />

Have Accelerated the Speed of Change…<br />

1. Deregulation<br />

Opening up of protected markets<br />

2. Globalization<br />

Entry of low-cost competition<br />

3. Technology<br />

Enabling work to be rapidly<br />

transferred<br />

4. Commoditization<br />

Increased market consumption,<br />

but challenged margins<br />

Every…<br />

Every…<br />

2 minutes US patent office receives<br />

an application<br />

4 minutes new consumer product<br />

launched<br />

16 minutes M&A transaction<br />

60 minutes $1 billion in global trade<br />

© SAP 2007 / 13


Consequence: Agility<br />

Flexible Business Processes of the Future<br />

HARD-WIRED<br />

VALUE CHA<strong>IN</strong><br />

SPECIALIZATION &<br />

CONSOLIDATION<br />

BUS<strong>IN</strong>ESS<br />

WEB<br />

© SAP 2007 / Page 14


© SAP 2007 / 15<br />

WHAT ABOUT<br />

THE<br />

CUSTOMER?


From Product to Solution to Consumer Experience<br />

Product<br />

Solution<br />

Consumer<br />

Experience<br />

Product variety<br />

Responsiveness<br />

Convenience<br />

Data centric Process centric User centric


Convergence<br />

Physical products and services<br />

From product … … to solutions<br />

Drilling machine Drilling holes<br />

Mobile<br />

Navigation<br />

Dynamite Broken rock<br />

Software-<br />

CD<br />

Software<br />

as a Service<br />

© SAP 2007 / Page 17<br />

© SAP 2007 / Page 17


Endress+Hauser<br />

Self Service Platform<br />

Endress+Hauser<br />

370,000 Downloads / Jahr<br />

Download Area<br />

Spare Finder<br />

Tool<br />

Common<br />

Equipment Record<br />

2,5 Mio.<br />

Equipment<br />

Records<br />

Field Care<br />

Installed Base<br />

Analyst<br />

Order Status<br />

W@M<br />

Endress+Hauser<br />

Homepage<br />

Applicator<br />

eCatalog<br />

eShop<br />

Customer<br />

Solution<br />

Spezification<br />

Configure and<br />

Buy<br />

Installation<br />

Running<br />

Maintanance<br />

Recycling


Boco<br />

Customer Value through Service Orientation<br />

boco<br />

Erfassen und<br />

Verpacken<br />

Fakturieren<br />

Schrankservice<br />

Prüfen und<br />

Reparieren<br />

Bringen und<br />

Holen<br />

Trocknen und<br />

Glätten<br />

Waschen und<br />

Pflegen<br />

Erfassen und<br />

Sortieren<br />

Kunde<br />

Berufskleidung<br />

bereitstellen<br />

Mitarbeiter<br />

einstellen<br />

Ausstattung<br />

Mitarbeiter<br />

Nutzung<br />

Grössentausch<br />

Trennung<br />

von<br />

Mitarbeiter<br />

ID


Amazon<br />

From Online Bookstore to Database-on-Demand<br />

Major company to sell goods over the Internet<br />

Started with books, diversified product lines largely (… and<br />

counting)<br />

Long tail business model<br />

Revenue in 2006: US$10.7 billion<br />

Partner Program<br />

Every partner can set links to Amazon products on own webpage<br />

and is rewarded for created revenues by visitors of the links<br />

Every partner can create own stores to offer own and Amazon<br />

products<br />

Over 900.000 registered partners world-wide<br />

Self-enforcing process: Links are ranked highly in search engines<br />

which makes Amazon more attractive<br />

Services<br />

Marketplace, Web Services, S3, EC2, Mechanical Turk, Flexible<br />

Payment Service, Unbox, MP3 Downloads … (and counting)


AMAZONs WEBServices<br />

http://www.youtube.com/watch?v=hkl24cYc09g


Software as a Service<br />

© SAP 2007 / 24


PRODUCT<br />

<strong>IN</strong>NOVATION<br />

Dedicated BPP for ME<br />

Enterprise SOA by design<br />

Model-driven architecture<br />

Adaptable configurations for<br />

process flexibility<br />

A New Category of Software<br />

SERV<strong>IC</strong>ES<br />

<strong>IN</strong>NOVATION<br />

GO-TO-MARKET<br />

<strong>IN</strong>NOVATION<br />

SAP managed SaaS solution<br />

New customer experience<br />

Built-in services and support<br />

A new business model<br />

Always up-to-date software<br />

Deployment flexibility<br />

Volume ready sales and<br />

channel processes


Pay As You Grow<br />

Next Generation of SaaS<br />

for Mission Critical and Adaptable Enterprise Solutions<br />

Isolation for reliability and protection<br />

Solid base for mission critical applications: One database<br />

instance per customer, one blade per customer<br />

Customer ownership of design and data<br />

Well-defined ownership boundaries along tenant,<br />

template and SAP<br />

Automation for efficiency provisioning<br />

Fully automated, massive parallel system mgmt for<br />

adaptable customer solutions<br />

Scalability for changing requirements<br />

Virtualization techniques, different blade types for<br />

different performance needs, seamless switchover


© SAP 2007 / 28<br />

FUTURE<br />

OUTLOOK


Predicting the future is not easy<br />

“The only thing different is the<br />

hair, as far I can see. I give them<br />

a year”<br />

Ray Bloch<br />

(Musical Director, “The Ed Sullivan Show”)


…is not easy…<br />

“Houses in 2001 would be able<br />

to fly, thanks to building<br />

materials made stronger than<br />

steel but lighter than<br />

aluminum. Whole communities<br />

may migrate south in the<br />

winter“<br />

Arthur C. Clarke<br />

(Vogue Magazine, 1966)


…and sometimes blocking<br />

“It doesn't matter what<br />

he does, he will never<br />

amount to anything”<br />

Albert Einstein's teacher<br />

(…to Albert’s father, 1895)


SAP Future Retail Center<br />

"Research for you to touch"<br />

Retail Innovation for SAP Clients and Partners<br />

Launch in August 2007 as "SAP Future Retail Center"<br />

► SAP research results from Retail, Trade & Logistics with focus on RFID & mobile applications<br />

► Partners: Close collaboration with exchange of ideas and experience, creating "Open Innovation"<br />

► Demos aligned with end-to-end processes, integrated with SAP ERP, Retail, Auto-ID Infrastructure<br />

Partners<br />

Today<br />

New<br />

Business<br />

Partners<br />

Academic<br />

Partners<br />

4 Prof. Elgar Fleisch<br />

4 Prof. Hubert Österle<br />

4 Prof. Thomas Rudolph


Clients und Partners see 15 Demos<br />

in 3 Scenarios<br />

Retail Strategy Demos<br />

Logistics Scenario (SAP ERP)<br />

Retail Scenario (SAP Retail)<br />

1)Price Strategy (SAP Khimetrics/SimCorp)<br />

1)RFID Labeling<br />

1)Fast-Track Shopper:<br />

4SAP Price Zone Optimization<br />

(Inspire, SAP Demand Innovation)*<br />

4RFID Labeling of trade units (PAGO)<br />

4Mobile Retail (CEC Canada)*<br />

2)Intelligent Picking<br />

4RFID Scanning (SAP Retail)<br />

2)Retail Location Evaluation<br />

4M<strong>IC</strong>A (CEC Karlsruhe / Fraunhofer)*<br />

4Mobile Payment (Siemens)*<br />

4Theseus (Inspire)*<br />

3)Pack and Ship & Good Receipt<br />

2)Weekend Shopper<br />

3)Smart Vending (SAP ERP, XI, BW)<br />

4Optimizing vending machines ops &<br />

replenishment (CEC Karlsruhe / B2M)*<br />

4RFID goods issue & goods receipt<br />

(SAP Retail, CEC Switzerland)*<br />

4RFID Shopping Cart<br />

(Siemens / SAP Retail)<br />

4)Anti-Counterfeiting<br />

4Intelligent RFID Scale (Mettler-Toledo)<br />

4)Bottle Deposit Returning (Adaxys)<br />

4Point-of-interest advertising (SAP Retail)*<br />

4PROVE (Inspire)*<br />

4Contactless Debit Card (SAP Retail)<br />

4Autom. Bottle recognition (Implenia)*<br />

* new Demo<br />

Ground Floor (117m 2 )<br />

Cellar I (89m 2 ) Cellar II (76m2)<br />

Storage<br />

RFID<br />

Storage<br />

Logistics<br />

Scenario<br />

Produce<br />

4 5<br />

2<br />

3<br />

Storage Storage<br />

RFID<br />

RFID<br />

Intelligent<br />

Forklift<br />

Storage<br />

Weighing<br />

Station<br />

Logistics<br />

Scenario<br />

RFID<br />

Weekend<br />

Shopper<br />

2<br />

RFID<br />

Printer<br />

Storage<br />

Goods<br />

Receipt<br />

Next:<br />

Warehouse<br />

Management<br />

4<br />

Storage<br />

Freight<br />

Elevator<br />

Freight<br />

Elevator<br />

Shelf<br />

Shelf<br />

Vending<br />

Machines<br />

3<br />

& Production<br />

Storage<br />

Retail<br />

Strategy<br />

Demos<br />

Fast-Track<br />

Shopper<br />

1<br />

Checkout<br />

Beauty<br />

products<br />

Shelf<br />

Shelf<br />

Pago<br />

Projection<br />

1<br />

2<br />

Conference<br />

Table<br />

Retail<br />

Scenario<br />

Storage<br />

1<br />

Label<br />

Printer<br />

TV


VISION: A TRULY WEBBASED ECONOMY<br />

Quelle: Prof. Henning Kagermann, 1. Nationaler <strong>IT</strong>-Gipfel, Potsdam, Dezember 2006


http://www.youtube.com/watch?v=9XUiLtvKqns


SERV<strong>IC</strong>E-OR<strong>IE</strong>NTED BUS<strong>IN</strong>ESS:<br />

MYTH OR REAL<strong>IT</strong>Y?<br />

Dr. Oliver Christ<br />

Director SAP Research (Schweiz)

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