Topic: "How SAP's product strategy will help our partners in Czech Republic to succeed"

The Nature of Strategy,

Business Level Strategy, SWOT Analysis for ERP

and SAP

SAP Strategy And Directions, SAP Products, Roadmap, SAP

NetWeaver strategy + eSOA

Five Things About SAP‘s

Strategy That You Need to

Know in general

SAP Ecosystem and Partner

Services, PartnerEdge Program and

benefits

My presentation has 4 modules – white, blue, gray and green. You can jump on the green slides that start on the page 51.

The nature of strategy

• The topic of strategy cannot be explained as a set of straightforward definitions and rules to be memorized and applied

• It is a bad news for those who prefer simplicity and certainty

Identifying the strategy issues

• MASLOW‘S HAMMER-AND-NAIL ANALOGY:• To become a good carpenter, who wisely uses

a variety of tools depending on what is being crafted, an apprentice carpenter will need to learn about these different instruments.

• Two ways to achieve that:1.) tools-driven approach2.) probleb-driven approach

Identifying the strategy issues

1.) tools-driven approach; One way is for the apprentice to study the characteristics and functioning of all tools individually, and only then to apply each where appropriate. So, understanding each tool comes first, while combining them to solve real problem comes later

2.) probleb-driven approach; understanding of problems comes first, while searching for the appropriate tools is based on the type of problem

Identifying the strategy issues

• Both previous ways can be used for the SAP product strategist

• 1.) in the tools-driven approach to learn about strategy, all major theories, to be compared or combined later when using them in practice

• 2.) I would adopt the problem-driven approach for this presentation; to identify key strategy issues at first, then look at them from the perspective of the most appropriate theories

Identifying the strategy issues• I will focus on the issue 5 a bit and then on the SAP product strategy

1 – Strategy Process – Content – Context2 – Strategic thinking and issue of strategic reasoning3 – Strategy formation and issue of realized strategy4 – Strategic change and issue of strategic renewal5 – Business level strategy and ISSUE OF COMPETITIVE ADVANTAGE6 – Corporate level strategy and issue of corporate configuration7 – Network level strategy and issue of inter-organizational relationships8 – Industry context and ISSUE OF INDUSTRY DEVELOPMENT9 – Organizational context and issue of organizational development10 – International context and issue of international configuration11 – Organizational purpose and issue of corporate mission

StrategyProcess

StrategyContent

StrategyContext

Levels of strategyStrategy issues at the functional level refer to questions regarding specific functional aspects of a company (product management or product strategy, operations strategy, marketing strategy, financial strategy)

Starategy at the business level requires integration of functional level strategies for a distinct set of products or services intended for a specific group of customers.Here the fundamental debate is whether firms are, and should be, primarily market-driven or resource driven. In other words, whether companies should think ‘outside-in‘ (adapt the firm to the demands of the market game) OR ‘inside-out‘ (search for environments and positions that best fit with their resource base)

Aspects of the strategy contextInternational Context

Industry Context

Organizational Context

Manager

Strategy topics, paradoxes and perspectives

BUSINESS LEVEL STRATEGY• Whether a firm has a competitive advantage depends on

the business system that it has developed. A business system is the configuration of resources (inputs), activities (throughput) and product/service offerings (output)

1. Competitive advantage can only be achieved if a business system creates superior ‘value proposition‘. A product must be more closely fitted to client needs than rival firms products

2. The ability to develop and supply the superior product offering. The capability to perform the necessary value-adding activities (research and development, production, logistics, marketing and sales) through a firm‘s activity system (value chain)

3. The third component of a business system consists of the resource base required to perform the value-adding activities. Resources such as know-how, patents, facilities, money, brands and relationships make up the stock of assets that can be employed to create the product offering

Resource Base(Stock of Assets)

Activity System(Value Chain)

Product Offering(Value Proposition)

MARKETS

Product Offering• Some of the most important bases of competitive advantage are the following:1. Price. The ability to charge a lower price2. Features. Firms can distinguish their product offerings by having different intrinsic functional characteristics

than competing offerings (change size – gigabytes required, functionality, compatibility, content, design)3. Bundling. To sell a package of products and/or services ‘wrapped together‘. E.g. Many customers prefer to

purchase their software from one supplier because this raises the chance of compatibility4. Quality. Offering better products in terms of usability, reliability and durability on many fronts (people

involved, processes, quality assurance procedures followed, distribution system used). Customers are willing to pay a premium price for such quality

5. Availability. The method of distribution can in itself be the main competitive edge. Having a product available at the right place, at the right moment and in the right way, can be much more important than features

6. Image. Even in business-to-business markets buyers often suffer from a shortage of information about the available product offerings. Therefore, the image of suppliers, mostly in terms of their standing (‘a leading global player‘) and reputation can be essential to be shortlisted and be trusted as a business partner

7. Relations. Customers value the personal contact, the trust and the convenience of having a long-standing relationship as well. For suppliers this means that they might acquire a competitive edge by managing their customer relationships well.

• Some authors argue that there are actually three generic competitive advantages:1. Operational excellence – striving for reliable, low cost product offering2. Product leadership – to meet buyer‘s need for special features and advanced product performance3. Finally, firms deciding to focus on – customer intimacy – meet the buyers‘ need for a tailored solution to their

particular problem

Activity systemIt is important to realize that the activity systems can vary widely from industry to industry. The activity system of a car manufacturer is quite distinct from that of an advertising agency. A unique value chain allows a firm to offer customers a unique value proposition, by doing things better, faster, cheaper, nicer or more tailored than competing firms. Developing the firm‘s activity system is therefore just as strategically important as developing new products and services.

The generic value chain (Porter, 1985)

Resource baseTangible Resources Intangible Resources

-Land-Buildings-Materials-Money

Relational Resources-Relationships-Reputation

Competences-Knowledge, know-how-Capabilities, number of skills-Attitude

SAP possessed no core competencies or distinctive resources. At the time of SAP‘s founding, SAP did not own computers to use in writing its software. Yet, SAP not only created its first value innovation, R/2 business application software for the mainframe environment, but repeatedly launched value innovations, including R/3, client-server business application software.As Hasso Plattner, SAP cofounder, put it: ‘The only resource we had was our brains and the idea of how to build powerful software.‘Later SAP leveraged the resources and capabilities of others, including Andersen Consulting (later Accenture), which served as SAP‘s marketing and implementation arm; Oracle, which supplied the necessary sophisticated database;and IBM, which supplied hardware. SAP has continuously renewed its customer base by moving aggressively from mainframe users, to client-server users, and to midsized and small companies.

Sustaining competitive advantage• Sustainability depends on two factors:- Competitive defendability. Ability to run faster than rivals,

to be able to upgrade SAP resources, activity system and SAP product offering more rapidly than competitors, to stay one step ahead of rivals, outpacing them

- Environmental consonance. The sustainability of a firm‘s competitive advantage is also threatened by developments in the market. Customer needs and wants are in constant flux, distribution channels can change, government regulations can be altered, inovative technologies can be introduced which requires a firm to continually adapt its business system

Predicting the future of ERP - A SWOT analysis on ERP – THE PARADOX OF MARKETS AND RESOURCES

Strengths:• Developments in IT has led to new technology frameworks which has eased Business Intelligence, OLAP and Business

Performance Management• Many predictive algorithms are available through research works• High speed computing has eased data-mining• Lot of data warehouses have been built over the years which can be used for analysisWeaknesses:• Predictive analysis mostly relies on building a model for the system based on certain assumptions. It is thus subjected

to Garbage in garbage out principle• Performance of the ERP software goes down as predictive require extra computation and resources in the form of data

tables• Analytics and predictives are developed using latest technology which is still not quite stable. Hence it results in some

unwanted code bugsOpportunities:• In this situation of cut throat competition companies give utmost attention to strategy and decision making. Predictives

help the management in making sound decisions based on estimates. There is thus a huge market for such ERP products

• Introducing analytics and predictives make the user interface more user friendly and intuitiveThreats:• There are many competitors in the industry like Oracle, SAP, Microsoft; who are fighting for the market share of such

products• Using latest technology for adding predictives to ERP leads to increase in the cost of product thus it might deter small

enterprises from investing in such products• Having a look at the SWOT analysis it feels like investing in predictives for ERP is a decent option for IT companies.

Location of Factor TYPE OF FACTORFavorable Unfavorable

Internal Strengths•Focus on research and development•Diversified geographical spread•Strong position in business software• robust, tailored to different industries •History and customer trust/loyalty •Excellent inventory management capabilities

Weaknesses•Lack of diversification•Declining margins•Expensive•Complicated to implement

External Opportunities•Strategic partnerships•Growing business intelligence platform market•Growing SaaS market, move into the web based SaaS model

Threats•The economy, global economic slowdown•Foreign currency risks Regulations•Undetected product errors and security shortcomings•Targeted or niche solutions often provide better capabilities and are much less expensive•Newer entrants can leverage web 2.0 technologies to integrate with other solutions, making a huge ERP system less of a necessity.

SWOT analysis for SAP

Business strategy versus product strategy

• http://www.svpg.com/business-strategy-vs-product-strategy/

• ”Product strategy is like a roadmap, and like a roadmap it’s useful only when you know where you are and where you want to go.”

SAP STRATEGY AND DIRECTIONS

SAP PRODUCTS – ROADMAP – mySAP SOLUTIONS

SAP software characteristicsThe well known SAP products started with SAP R/2. Over the years the new releases came out as SAP R/3 and mySAP solutions. Most recently, the NetWeaver product set was released with the eSOA architecture. This standard software is very customizable so that customers can configure it to meet specific business needs. The base product delivered a high reuse factor and a very fast learning curve for the SAP users. These benefits moved SAP to an informal standard in business software and the footprint in the marketplace has grown very quickly. The founders of SAP invented their own programming language – called ABAP – to develop their product.

Strategic technology change within SAP• This slide illustrates the different product generations. The R/2 was built on a mainframe architecture.

The move to R/3 on a 3-tier architecture was a complete replacement of the old product. In R/3 the different components for ERP, HR, CRM, and others were created. The move to an Enterprise Service Architecture was different. It was not a replacement, it was an extension. The complete R/3 components run further on, but were extended to support new technologies and features.

• NEXT STEP = > extension instead of replacement

Strategic technology change within SAP• SAP Basis = is the technological platform (virtual machine) that supports the entire range of SAP applications

that is implemented in the framework of SAP Web Application Server• R/3 = consisting of various application that were built on top of the SAP Web Application Server, 1993• mySAP ERP = bundled previously separate products SAP R/3, SAP SEM Strategic Enterprise Management

plus extension sets, 2003• SAP NetWeaver = new release with eSOA architecture. The SAP Web Application Server was wrapped into

NetWeaver

SAP R/3 Modular architecture• The modular architecture that was introduced with SAP R/3

focused on special solutions for dedicated market segments. These components had the same foundation - the SAP R/3 core server - and enhanced the functionality in different ways.

Industry solutions• More and more industries needed special applications tailored for their needs• more than 26 industry solutions which reused common components from

standard SAP R/3• Business Maps – provide intuitive visualization of business processes and

solutions; including solution maps to help organizations understand how SAP solutions support key business processes and scenario maps to convey graphical representation of industry-specific processes

Ready to use industry solutions• Here you see a list of ready to use industry solutions. But

keep in mind that they are prepackaged – but they need a lot of customization and often a lot of extension to fit the current customer situation. They are a buyable starting point for the different industries.

Industry solutions example: Automotive• Here is an example of an industry solution map. SAP covers

the whole product life cycle with different components.

mySAP Business Suite – Service oriented architecture

• The mySAP business suite was based again on a core SAP system – the mySAP ERP. In the product bundle four of the most used enhancements were shipped as explained in the next slide – PLM, SRM, SCM and CRM.

mySAP Business Suite• Here you have more details on the single products for

your reference.

Technology transitionThis slide reflects the Market trends for the SAP solution. Customers are still in this transformation stage; many customers still have old SAP installations that just run, and there is no “product” need to enhance their license. It is just the maintenance issue that forces customers to upgrade.

SAP NetWeaver and SAP Enterprise Service Architecture

In the NetWeaver product there are many more components than in the older product versions, but the general architecture is similar. There is a core component based on SAP Web Application server, and there are other components based on this core.

SAP ERP Release Strategy• The strategy for the SAP ERP is that one after another

additional Enhancement packages are developed until in 2010 a new ERP release will get bundled.

Quick ESA – move from monolithic to component architecture

• Also the movement from monolithic systems to component based applications is on-going. The different components offer services that can be leveraged by different applications.

Define enterprise services oriented architecture

• Here is the SAP SOA definition. SAP eSOA is a methodology for building reliable services-oriented applications. It offers an enterprise-wide blueprint for comprehensive business process evolution while protecting investments through the reuse of existing IT systems. SAP eSOA builds on Web services to aggregate existing systems functionality into easy to use, high level enterprise services. The Enterprise Services Architecture is relevant for all SAP solutions, mySAP Business Suite, SAP for Industries and SAP xApps. The Enterprise Services Architecture is based on the incorporation of open standards for easy extensibility, and covers the design of newly built applications and the extension of a given customer IT landscape.

SAP STRATEGY

• This presentation has provided a picture of the company and the products. But what is the vision behind the products? What is the strategy?

Initial situationHere the initial situation of many customers is shown: many different systems connected with each other.

Step 1: Visualise manufacturing data• The first step is the installation and setup of an SAP

NetWeaver EP and XI. These can be connected to the existing infrastructure.

Step 2: Employee self service• As a next step, an SAP ERP gets transformed in the new stack

– in this example the HCM solution was used in the ERP.

Step 3: Use of RFID solutions• After that the NetWeaver platform is enhanced by the Auto ID

infrastructure.

Step 4: Use of SAP NetWeaver• Now all the platform components get transformed in the new

NetWeaver portfolio.

Step 5: Upgrade to mySAP ERP• After that, the second SAP ERP can get included in the

NetWeaver stack.

Step 6: Use of my SAP Business Suite• After the CRM was also included here, all applications of the

SAP Business suite are used.

Step 7: Final situation• Now, on top of this, new business processes can be placed to

meet new business goals.

Reasons for NetWeaver and eSOA• So you have seen the product strategies and there are several

reasons to move to NetWeaver. Also it is possible to cover the complete solution within the portfolio.

Five Things About SAP‘s Strategy That You Need to Know

1. Product Release Strategy• SAP has traditionally released products and made major changes to underlying functionality on a five-year

schedule. So twice a decade, SAP's customer base faced a tough decision. They could either ignore the product improvements that their maintenance fees had helped to fund, or they could invest a significant amount of time and money in an upgrade project that is often disruptive, expensive and deeply unpopular. It became quite common for companies to delay or defer releases. However, that approach carries enough risk and cost that most organizations didn't dare go longer than eight to 10 years between upgrades.

• In October 2005, SAP finally started to fix this release gap with the shipment of its ERP 6.0 product. Instead of bundling five years of product enhancements and technology improvements into one massive upgrade, SAP has now moved to what it calls a continuous innovation strategy. The major applications in SAP ERP and the SAP Business Suite will now be upgraded through enhancement packages issued every six to 12 months. These enhancement packages are shipped at no cost to customers on maintenance, and deployment is optional. Each enhancement package includes new and improved functionality across a variety of product areas and vertical industry applications.

• most SAP customers can upgrade their systems gradually without the kind of massively expensive and disruptive projects that have traditionally characterized SAP releases.

• companies with global deployments, multi-terabyte databases, and tens of thousands of users simply cannot afford to do monolithic upgrades anymore – see the slide 32, move from monolithic to component architecture

Five Things About SAP‘s Strategy That You Need to Know

2. Growth Strategy• SAP has realized that the company has needed to both expand its product offerings to its customers

as well as move into new markets. This market expansion can be seen in getting new customers, expanding the product scope, moving into new geographies and industries, and going after not just the large enterprises but the SMBs as well.

• To penetrate SMB market. It's big, growing fast and it's relatively untapped. Most companies are still using Excel spreadsheets to manage their businesses which is almost archaic system compared to what you can do with SAP.

• In April 2008, SAP announced a new referral and incentive program for its partners and nonpartners to drive SMB customers SAP's way. The move, paying for new software business.

• Those who can receive the referral fees consist of nearly every conceivable company in the software sales channel and SAP ecosystem: value-added resellers (VARs), solution resellers and independent software vendors (ISVs) who may or may not currently be authorized SAP partners. In addition, the referral program applies to alliance partners, technology and business consultants, accountancy practices and other companies already working with SAP.

• Like other software vendor referral programs, such as Oracle's SMB plan called Accelerate, the reward is cash for those who generate leads eventually closed by SAP. The "closing reward," as SAP terms it, is usually 5 percent of the deal's net software license value with a maximum amount of $50,000.

• SAP derives most of its revenue from its installed customer base. Its objective is to ensure that customers never stop buying licences, maintenance, and services.

Five Things About SAP‘s Strategy That You Need to Know

2. Growth Strategy• For the next several years, both Tier 1 ERP

software vendors (Oracle, SAP, Microsoft Dynamics) and Tier 2 ERP vendors (Intuit, Infor, Sage, Epicor) will continue to battle for the small and medium business (SMB) customers. ERP software applications were historically developed for large, global, Fortune 100 manufacturing companies. However, in the last decade the focus has shift dramatically to the SMB market. Most of the ERP innovations and technology advances over the last ten years such as SaaS, or software as a service, web-based application have been developed with the mass market, or the tens of thousands SMB in mind.

Five Things About SAP‘s Strategy That You Need to Know

2. Growth Strategy• Microsoft Dynamics AX and SAP have been positioned in

the Leaders quadrant of the Gartner Inc. Magic Quadrant for Midmarket and Tier-2 Oriented ERP for Product-Centric Companies, a research report that evaluates global ERP products and that is specifically tailored for product-centric, midmarket companies with 100-1,000 employees.

• Although some see this market as large and mature, Gartner sees this market as undergoing a "changing of the guard," with older, established systems with deep functionality being displaced by more modern and agile systems. The key trends driving changes in this market are:

• The packaging of industry-specific functionality. • Technology modernization using service-oriented

architecture (SOA). • The need for global deployments

Five Things About SAP‘s Strategy That You Need to Know

3. Platform Strategy• in 2003, when SAP packaged up its technology components and unveiled

the NetWeaver product set• The idea was that this technology and architecture would no longer simply

be the invisible engine that powered the application products, but that SAP could expose it as a platform and allow customers and partners to use it to extend SAP applications or even build brand-new applications. SAP had to build the platform anyway in order to develop its service-oriented architecture (SOA)-based product line. Management believed that making it publicly available would enhance SAP's reputation as a technology leader, and it could potentially become an additional source of product revenue.

• SAP continues to refine and market the idea of a "business process platform," which is made up of SAP's Business Suite applications, a repository of enterprise services, and the NetWeaver technology platform

Five Things About SAP‘s Strategy That You Need to Know

4. Industry Strategy• Using a combination of internal and customer sponsored development,

partners and clever packaging, SAP now has 25 separate industry solutions across a range of industries from mining and manufacturing to higher education and financial services.

• Many of these are supported by industry value networks (IVNs) of customers and partners that collaborate with SAP on defining requirements and building extensions.

• Now, SAP is aiming to use the same "blueprint" in going after non-manufacturing industries, such as retail, insurance, education, banking and public sector. Companies in these industries that are willing to be highly visible lighthouse accounts will have lots of negotiating leverage if they are willing to tolerate applications that are still rather immature.

Five Things About SAP‘s Strategy That You Need to Know

5. Product Strategy• One of the reasons for this product proliferation is the software industry consolidation that has resulted in large

ERP vendors like SAP competing in many other adjacent software categories, such as CRM, supply chain management, and product lifecycle management. SAP has also brought to market other complementary products not named ERP and aimed at the business users in areas like performance management, regulatory compliance and analytics.

• Application strategy – knowing what happens after 2013. The SAP Business Suite looks stable until then, and customers like the idea of regular enhancement package releases rather than major upgrades. That said, they live in fear that after 2013 they may be faced with another product transition like the one from R/3 to mySAP.“

• the current Business Suite will remain SAP's flagship product line well beyond the 2013 maintenance window. While the mySAP.com product was officially launched in 1999, development just recently completed on a fully SOA-based suite, and there are still a significant percentage of customers that haven't upgraded from R/3. Launching another new product would unduly jeopardize that very important base. Furthermore, SAP is under no pressure from its customers or its competitors to move to a new technology and it is unlikely to be in the next few years.

• As to SAP's Business ByDesign on-demand software offering targeted at SMBs, SAP has many large customers that need a smaller and simpler application that can be easily integrated to the Business Suite. CIOs regularly face the question of what to do about autonomous divisions, smaller sites in remote locations, new acquisitions, and joint ventures. Incorporating them into the global, single instance of SAP is often an unpopular option that may be financially or technically impractical. Business ByDesign in either a hosted or on-premise form, should be much more attractive to the users than the corporate system and yet much easier to integrate than a third ERP.

About the SAP Ecosystem• Partners in the SAP Ecosystem• No single company can do it all. Our ecosystem of partners,

communities and customers provides a strong foundation of support and collaboration, delivering exceptional value and tailored solutions to help meet the specific needs of your business

• Our customers need solutions that fit their specific requirements – now. The SAP ecosystem addresses the persistent need for business agility by helping companies tap into a trusted network of partners, customers and individuals – so you can react quickly and get the job done. Through the SAP ecosystem, we connect you with a diverse set of solution providers and resources that are essential to helping your company succeed and become a best-run business.

SAP ECOSYSTEM AND PARTNERS• Our partners share SAP's passion for customer value. Together we create a thriving

ecosystem in which our valued partners can be successful – a win-win situation for all. SAP is committed to supporting our partners through our award-winning, recognized partner programs, like the SAP PartnerEdge program – the framework built and designed to ensure success for SAP channel partners, now in the process of expanding its coverage to software and services partners. These partner programs focus on:

• Greater market exposure and expanded business opportunities• Rewards for sales success, solution development, and the ability to satisfy our mutual

customers• Joint sales and marketing initiatives• Access to a broad and growing customer base• Market development funding• Technical expertise on SAP platforms and solutions• Co-innovation and co-development• Collaborative planning and execution

Partnership Categories• Partnership Categories• SAP offers global and local partnership categories for every

strategic business area and customer need in all market segments. So no matter your area of expertise, you can have an opportunity to grow your business by aligning with SAP.

• As an SAP partner, you can participate at varying levels of commitment – from far-reaching global alliances to local, industry-specific collaborations. At every level, you can rely on SAP for intensive, back-office marketing support, sales support, technical services, training, and certification opportunities.

• After joining one of SAP's partner categories, you'll interact with many professionals globally in our ecosystem.

SAP Partner Categories• SAP-based outsourcing and cloud services providers• SAP Crystal solutions providers• SAP channel partners• SAP education partners• SAP language service partners• SAP OEM partners• SAP services partners• SAP software solution partners• SAP support partners• SAP technology partners

SAP Partner Category Description• SAP-based outsourcing and cloud services providers – Provide certified outsourcing or cloud services

as an SAP partner of software-as-a-service (SaaS), business process outsourcing (BPO), hosting, or application management services (AMS) – and gain benefits for you and your customers

• SAP Crystal solutions providers – Help monitor performance, identify opportunities for growth, and transform how you run your business with SAP Crystal solutions

• SAP channel partners – Capitalize on the expanding small and midsize enterprise (SME) market by utilizing our broad portfolio of SME partnering opportunities

• SAP education partners – Work with SAP to deliver high-quality, professional training for SAP solutions and technology

• SAP language service partners – Enable a partner solution for customer-specific translation requirements

• SAP OEM partners – Create new revenue opportunities by including best-in-class, embedded reporting, high-value analytics and dashboard functionality with your software solutions to speed your product to market

• SAP services partners – Help SAP customers design, implement, and integrate SAP solutions; optimize business processes; and provide strategic business consultation

• SAP software solution partners – Develop certified applications that extend and add value to SAP solutions across industries and business processes

• SAP support partners – Ensure that customers receive the best possible support throughout the life cycle of SAP solutions

• SAP technology partners – Provide infrastructure for SAP solutions, including hardware platforms, databases, storage systems, networks, and mobile devices

Benefits of SAP PartnershipBenefits of becoming an SAP partner include:

• Access and exposure to SAP's customer base• Entry into a collaborative environment where partners support one another and work toward

greater customer success• Access to our partner-only portals for product, marketing, sales, and competitive information,

One example is the SAP EcoHub – an online solution marketplace where customers can discover, evaluate and buy proven solutions from SAP and our partners.

• Sales and marketing assistance• Technical support• Participation in SAP events (SAPPHIRE NOW, SAP TechEd conference, SAP Forum and SAP

Summit, Special Expertise Events)• SAP Referral Program– Many kinds of partners and organizations, even those who do not have a

direct relationship with SAP, can earn substantial referral fees through our SAP Referral Program . Register, submit leads, track their status – earn big returns on those leads that convert to wins. SAP solutions geared to small businesses and midsize companies based on any of the following applications or solutions qualify: SAP Business One, SAP Business ByDesign, SAP Business All-in-One, Business Objects Edge Series: BI, Planning and Consolidation, Strategy Management, Rapid Marts package

SAP PartnerEdge Program for Channel Partners

As a partner in our highly selective, industry-leading program, you'll have access to benefits that will help you grow your business, including:

• Access to the SAP Channel Partner Portal – Our online resource provides immediate access to world-class education, sales, marketing, support, and informational resources.

• Dedicated sales and marketing support – SAP representatives and powerful online resources assist you throughout the entire sales cycle.

• Business opportunities and leads – Convert highly qualified leads from SAP into live customers.• Generous market development funding and lead generation programs – These resources help jump-start your

business and sustain ongoing growth.• Access to the SAP PartnerEdge P2P Network – This secure online sales and marketing collaboration tool enables you to

collaborate and share with partners, and expand your market reach.• Systems, education, and ongoing support – These resources help you proactively manage your SAP relationship, build

competency and expertise, and achieve successful sales and implementations.

SAP channel partners sell solutions specifically designed for the SME market – fast-to-implement, affordable, and flexible – in order to meet the many needs of small businesses and midsize companies:

• SAP Business One application• Qualified SAP Business All-in-One partner solutions• SAP BusinessObjects Edge solutions

SAP PartnerEdge for channel partners requires value-added resellers (VARs) to maintain full-time SAP qualified sales and technical personnel, along with ongoing sales transactions, achievement of business plans, and annual program fees

Partnering with SAPSAP PartnerEdge Program

A robust set of program benefits, services, and resources designed to accelerate your business. SAP PartnerEdge rests on a foundation of four enablement pillars: partnership, technical, marketing, and sales.

• Partnership – SAP PartnerEdge provides a common infrastructure for partner engagement, regardless of location or partner type. The overarching framework and key aims of the program are the same for all partners. However, to meet specific requirements, each partner track has its own entry requirements, contract, and contacts at SAP. Tools and resources have also been developed to meet the unique needs of each partner type

• Technical – SAP currently offers a variety of training classes, consulting packages, and development tools to help you navigate the technical requirements of developing solutions that seamlessly integrate with SAP solutions

• Marketing – SAP provides a variety of marketing tools, services, and activities designed to accelerate the go-to-market cycle and help you reach SAP customers and prospects

• Sales – SAP provides sales tools, services, and activities designed to accelerate the sales cycle. Some of the tools may require additional registrations, terms, and fees

SAP PartnerEdge

SAP PartnerEdge Spectrum

1. Partnership Enablement PillarPartner Services Advisor – Your partner service advisor serves as a single point of contact for the SAP PartnerEdge program and helps you identify and leverage the right services and resources.Access to the SAP PartnerEdge Partner Portal and the Manage My Partnership Application – You will receive access to an exclusive Web site for updating and managing profile information and for important sales and marketing resources. In addition, the Manage My Partnership application allows partners to manage the business relationship with SAP through a simple and streamlined user interface.Newsletters and Communications – Partner newsletters are designed to keep you up to speed with the latest SAP products and developments. They also communicate issues and news relating to partner programs and provide tips on how to make the most of your partnership.Partner Enablement Center (PEC) – The center serves as your primary resource tool. You can access a variety of workshops for sales, marketing, technical, and partnership enablement sessions. The sessions are offered live or on demand.

2. Technical Enablement PillarDevelopment software license – Development licenses are made available to Software Solution and Technology Partners subject to current terms and separate agreements. In addition, all SAP Software Solution and Technology Partners are entitled to one SAP NetWeaver Development software license free of charge.Test and Demonstration Software – Test and demonstration software is made available to Software Solution and Technology Partners subject to the current terms and separate agreements.SAP Remote Access and Connectivity Service (SAP RAC) – Convenient access to hosted SAP solution landscapes ready to use for integration testing, internal training, or demos. Partners need not invest in additional hardware or spend time on installation or system administration and can still have an SAP software system at their fingertips. Recertification – To allow Software Solution and Technology Partners to keep their integration certifications current and renew them at least every three yearsProduct Briefings and Product Ramp-Up Opportunities – As a Software Solution and Technology Partner, you will have access to apply for ramp-up software. Ramp-up is a win-win engagement for both SAP and partners. You can choose to obtain the ramp-up software either for your company’s own training and testing purposes or to implement at a customer site. SAP Co-Innovation Lab – Select benefits of SAP Co-Innovation Labs are extended to pre-members and members in good standing in the Software Solution and Technology Partner track.

3. Marketing Enablement PillarSAP Partner Logo and Guidelines – Members of the SAP Software Solution and Technology Partner track are permitted to use the SAP partner relationship logo and SAP trademarks in marketing and sales efforts. As a member, you can also use the appropriate integration certification marks administered by SAP. SAP Virtual Agency – SAP virtual agency is a self-service, online, campaign execution platform that allows partners to plan, build, and execute campaigns in minutes. It helps partners maximize revenue through increased demand generation and greater market penetration.SAP Communications Toolkit – The communications toolkit provides a communications guide for partners and highlights two key compelling business issues that will drive top priority customer purchasing decisions such as operational efficiencies and innovation.Partner Playbooks – developed by industry, platform, application, or technology – are informative guides that provide 360-degree enablement across technology, marketing, and sales dimensions.Customer and Partner Events – SAP partner conferences and events such as SAPPHIRE and SAP TechEd offer an opportunity to learn about the latest products and program developments and to meet SAP executives and other colleagues. Marketing Content Blocks – Another benefit available to Software Solution and Technology Partners is a standard offering of copy blocks that can be used in partner marketing efforts. These content offerings help you to better message and position SAP, SAP solutions, and technologies in a consistent and SAP-aligned manner. Public Relations and Analyst Relations Guidelines – The SAP press guidelines for SAP Software Solution and Technology Partners apply to all SAP partners and serve as a valuable resource on how best to prepare efficiently for public relations and press opportunities.SAP Image Library – SAP offers a library of brand-approved images for partner use. The image library offers a wide selection of four-color marketing images for use in advertising, collateral, presentations, demonstrations, and more.Google Search and Association Capabilities – All member level partners will be given the opportunity to associate their company name with SAP on Google Search.

4. Sales Enablement PillarSAP EcoHub – The SAP EcoHub solution marketplace provides a trusted buying experience for customers and allows them to discover, evaluate, and buy relevant, SAP-certified solutions from SAP partners. SAP EcoHub helps you generate awareness, receive leads, follow up on sales opportunities, and provide collateral material to assist customers in the decision making process.SAP Partnership Reference Letter – At member level, partners will have access to an automatically generated letter that is downloadable from the SAP EcoHub partner work center and that validates the partner’s relationship with SAP.SAP Sales Fact Book – provides a wealth of valuable information on how to position your partnership with SAP and its solutions. This tool is designed to help safeguard consistency between our companies in the market.

Customer Spotlight – SAP Software Solution and Technology Partners can participate in the customer spotlight initiative and leverage the power of the SAP brand by creating jointly branded customer success stories. For a nominal cost, partners receive a finished collateral piece based on a customer and partner interview that you can use in your marketing and sales activities.SAP Financing Service – The SAP Financing service is designed for partner customers and can be used to finance all the software, hardware, and services costs of an SAP solution for a period of up to seven years.

Membership Levels• Organizations may belong to different tracks within the SAP PartnerEdge

program. Each track maintains its own separate requirements and fees that you must meet to remain in good standing and receive that track‘s specific benefits.

• To join and remain in good standing in SAP PartnerEdge, all SAP software solution partners are required to maintain minimum track requirements.

• Each level entitles you to a robust set of program benefits that increase as you advance to a higher level. All new partners enter the program at the bronze level

Resources• Strategy – Process, Content, Context - De Wit & Meyer• System Analysis and Design in a Changing World -

Satzinger, Jackson, Burd• An AMR Research report details SAP's strategies - AMR

senior vice president of research Jim Shepherd:http://www.cio.com/article/359113/Five_Things_About_SAP_s_Strategy_That_You_Need_to_Know

• www.sap.com/partners• SAP Strategy and Directions – IBM, IBM Education

Assistant - SAP Integration Workshop, 2007:http://publib.boulder.ibm.com/infocenter/ieduasst/v1r1m0/index.jsp?topic=/com.ibm.iea.wsapiw/wsapiw/5.0/IBMandSAP_Intro2SAP_tech/P02_SAP_strategy_and_directions/player.html