The Future of ERP by Bertrand Andries

The future of ERP and the
consequences for the industry

Bertrand Andries CONFENIS 2012
September 2012

Our customers fly
more than 1.1 billion
of the world’s passengers yearly.

Our customers produce more than
72% of the world’s beer.

Our customers produce
more than 70%
of the world’s chocolate.

© 2011 SAP AG. All rights reserved. Public 4

Our customers produce
more than 86%
of the world’s athletic footwear.

From Operational Efficiency to Competitive Differentiation

Competitive
Differentiation

Operational
Efficiency

Business Process Business Network
Reengineering Transformation
+ +
ERP Enterprise SOA
1990s 2000s 2010s


The Core: SAP Business Suite
For Every Business and Every Process

SCM
Supply Chain Management

SAP ERP
SRM CRM
Financials, Human Resources,
Supplier Customer
Relationship Logistic Execution, Relationship
Management Sales, Manufacturing, Management
Purchasing, Corporate
Services

PLM
Product Lifecycle Management

Technology Platform
Portal – Integration – Master Data Management - Reporting

Service Oriented Enablement (SOA)

How to get to a Sustainable Cost Structure ?


We’re living in
a world of change.

Home Imagine Purpose Innovations Solutions Ecosystem People Results Join Us

Global middle Business
class growing and personal
from 2B to 5B lives have
by 2030 been blurred
15 Billion More data in
connected last 5 years than
devices entire history of
by 2013 mankind

1 Billion people More mobile
engaged in devices
social networks than people

Unprecedented
empowerment of people

A world of change Imagine a better run world


2012 STRATEGY
FIVE MARKETS

TECHNOLOGY
APPLICATIONS ANALYTICS MOBILE CLOUD
& DATABASE

In Memory (HANA)

SERVICES

Fact:
More data has been created in the last five years
than in the entire history of mankind.

Implication:
Unlocking the secrets inside this data presents
breakthrough opportunities for businesses



What is Big Data?
Volume, Variety and Velocity

Source: TDWI Big Data Survey

Need a breakthrough technology
Today's technology requires tradeoff

Deep Deep
Complex & interactive questions Complex & interactive questions
on granular data on granular data

OR
Broad High Speed Broad High Speed
Big data, Fast Big data, Fast
many response-time, many response-time,
data types interactivity data types interactivity

Real-time Simple Real-time Simple
Recent data, preferably No data preparation, Recent data, preferably No data preparation,
real-time no pre-aggregates, real-time no pre-aggregates,
no tuning no tuning


SAP HANA is the only solution that does it all
Delivering across 5 dimensions of modern decision-processing

Deep
Complex & interactive questions
on granular data

Broad High Speed
Big data, many Fast response-
data types time, interactivity

Real-time Simple
Recent data, preferably No data preparation, no
real-time pre-aggregates, no tuning


In-Memory Computing

Technology that allows the processing of
massive quantities of real time data
in the main memory of the server
to provide immediate results from
analyses and transactions


(Re-) Unification of Transactional Processing and Analytics

https://openhpi.de/

In-Memory Computing – The Time is NOW
Orchestrating Technology Innovations
The elements of In-Memory computing are not new. However, dramatically improved hardware economics and technology
innovations in software has now made it possible for SAP to deliver on its vision of the Real-Time Enterprise with In-Memory
business applications

HW Technology Innovations SAP SW Technology Innovations

Multi-Core Architecture (8 x Row and Column Store
8core CPU per blade)
Massive parallel scaling with
many blades Compression

Partitioning

64bit address space – 2TB
in current servers No Aggregate Tables
100GB/s data throughput
Dramatic decline in
price/performance Real-Time Data Capture
Insert Only on Delta


How?

Multi-Core CPUs Computational Power
Large Memory Footprint 1m Faster Access than Disk

Row and Column Store Column = Fast Queries

5 – 20x
Compression 1 TB Data = 100GB Memory

Partitioning Analyze Large Data Sets
In-Database Computing Complex Computations

No Aggregate Tables Flexible Modeling
No Data Duplication

Real-Time Replication Fast Data Loads
Insert Only on Delta

SAP HANA
Ideal platform for real-time business

Real-time
Analytics

Operational Data Warehousing Predictive & Text Analytics
Reporting on Big Data

Real-time
Applications

Core Business Planning and Sensing and
Acceleration Optimization Response

Real-time
Platform

Database Mobile Cloud


SAP HANA
Ideal platform for real-time business

Real-time
Analytics

Real-time
Applications

Real-time
Platform


In-Memory database … continued
… and pre-configure as a simple appliance

Calculation Engine

Query Results

Query/ETL Query

Aggregates

Indexes

SAP HANA
Data Warehouse

ETL

Operational Data Store

Copy

Data


SAP In-Memory Strategy
Product Strategy and Plan

“Transformation”
“Innovation“ Longer-Term (Plan)
Mid-Term (Plan)
“Renovation”
SAP HANA 1.0
Ramp-Up since Dec 2010

In-Memory Next-gen One Store for Data
Analytics Applications and Analytics
Capabilities ■ SAP HANA real-time ■ SAP BW fully running on SAP ■ SAP HANA only persistence layer for
operational analytics HANA SAP Business Suite
■ Complete BI Suite with BI 4 runs ■ SAP HANA platform for in-memory ■ SAP Business Suite optimized for
on SAP HANA apps in-memory computing
■ SAP Business Suite runs on
SAP HANA
■ Further optimization of BI 4 Suite
for SAP HANA
■ Industry and LOB Analytic Apps

■ Flexible real time analysis of ■ Real-Time operational ■ Reduced landscape
Benefits operations at non-aggregated planning and simulation complexity
level capabilities: link to execution ■ Value chain transformation
■ Primary persistence and
optimized for SAP BW


SAP HANA Transforms both Businesses and IT

Reduce waste & fraud in government fund Sharpen marketing effectiveness
<2 min for detecting 100,000 names over 56x faster reporting: micro-targeted
90M records customer offers

Identify cancer DNA variants for treatment Accelerate monthly close & spending insight
216x faster results: 3 days  20 minutes 75% reduction in CRM query
~23 to 6 seconds

Improve diagnostic through pattern detection
Launch new products or markets
300M records; analysis in 2-10 seconds
400x faster report execution: Predict
sales-trends in real-time
Predict customer purchase sentiment
Seasonality Analysis in 5 seconds
Remote roadside diagnostics in real-time
Analyze 15 years 1 TB data
Improve labor utilization in seconds
1131x faster reporting time
Deeper customer relationships
“Perfect order” experience 360 customer view and comprehensive
60x faster real-time insights experience


There Are More Mobile Phones
Than Toothbrushes (5B vs 2.2B)

© 2011 SAP AG. All rights reserved. / Page 25

Fact:
There are now more mobile devices on
Earth than there are people

Implication:
A business can now exponentially expand
its reach in a flash



First 13 Quarters Cumulative Global Android & iPhone Shipments

Android iPhone



Growth of Number of Devices vs. Number of People on Earth



India Internet Traffic by type, Desktop vs. Mobile, 2008 – 2012

Desktop Internet
Mobile Internet



Gartner predicts …

“By 2013, a typical Fortune 1000 corporation delivering B2E and
B2C applications will use at least 6 different combinations of
mobile platform, architecture and development tools”

“By 2014, 60% of Fortune 1000 corporations will have failed to put
a comprehensive mobile strategy in place, leading to considerable
overspending”



SAP’s Coverage: SAP Mobility Enterprise Solutions

3 Mobile Services

2 Mobile Applications

1 SAP Mobility Platform


Why a platform?


Unwired Platform
- Introduction

SQL (JDBC)
BlackBerry
WebService
iPhone, iPad, iPod
REST
Android
BAPI (JCo)
Windows
Odata
Windows Mobile
Netweaver Mobile

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is
© 2011 SAP AG. All rights reserved. Public
provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement 34

The internet of things

REQUIRES



2012 And Beyond

TECHNOLOGY
APPLICATIONS ANALYTICS MOBILE CLOUD
& DATABASE

HANA

SERVICES

Conclusions
Cloud, Mobile, in-memory and social networks are changing the IT landscape

High public adoption of some of the technologies

Business lagging behind in:
• Setting out strategies (public, mobile, information management and technology)
• identifying value scenarios

Requirements for IT education:
• Increase number
• Combination of mathematics and business acumen
• Combination of IT architectural and business strategy understanding

Combination of evolutions is powerful but not fully understood
• Big data + Cloud + Mobile + Social Networks + transactional excellence = ????

Societal, ethical and environmental impact


The Future of ERP by Bertrand Andries

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