SUGEN/SAP Task Force SAP Enterprise Support. On Boarding Document

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SUGEN/SAP Task Force

SAP Enterprise Support

On Boarding Document

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1. About SUGEN

2. Benchmark Program and Objective

3. Timeline

4. SUGEN Benchmarking KPIs

5. SUGEN Benchmarking KPI Customer Selection

6. Next Steps

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SUGEN: Mission, Charter, Deliverables

Mission: All Together Now

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.

Charter

To be the Global Network of User Groups that will provide a collective view of strategic issues that need to be addressed by SAP

Main Deliverables:

Provide consolidated strategic influence priorities and User Group members to work with SAP to resolve them

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

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

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SUGEN: Who We Are

A united network of 12 User Group Communities across three continents

4

US and Canada

ASUG

Mexico and Central AmericaASUG Mexico Brazil ASUG Brazil France USF Germany, Austria, Switzerland DSAG Netherlands VNSG Spain AUSAPE Sweden SAPSA UK SAP UK & Ireland User Group

Australia SAUG Japan JSUG Middle East and North Africa SUG-MENA

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SUGEN: How We Are Organized

5 Mike Stoko Chairman

SUGEN

Matthias Herzog Vice Chairman Per Högberg Vice Chairman

SAP

Stefan Kneis Executive SAP Contact

Oliver Hid Arida

Director

Customer Advocacy

Norbert Nowak

Director Global Communities

Executive Sponsors (CEO):

Henning Kagermann

Leo Apotheker

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SUGEN Enterprise Support Charter –

Governance Structure

SAP SUGEN Uwe Hommel Meinolf Kaimann Norbert Nowak Martin Risau Stefan Kneis

Matthias Herzog (DSAG) Andreas Oczko (DSAG)

Executive Steering Committee

SAP SUGEN

Uwe Hommel Matthias Herzog

SAP SUGEN

Norbert Nowak Andreas Oczko (DSAG)

Program Management Office Team Member

Alessandre Galvao (ASUG Brazil)

William Khalil (SUG-MENA - Middle East/North Africa) Tonnie van der Horst (VNSG – Netherlands)

Thomas Schierwagen (SAPSA Sweden) Alan Bowling (SAP UK & Ireland UG) Grahame Reynolds (SAUG – Australia) Jutaro Shiraishi (JSUG – Japan) Maiko Miyakawa (SAP Japan) Mario Guenter (DSAG)

Jean Leroux (France, chairman)

Operational Steering Committee

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SUGEN/SAP Enterprise Support Task Force

Statement/Task:

In November 2008 SAP has set up a joint team with SUGEN to establish Value Key Performance Indicators (KPIs) for SAP Enterprise Support. SUGEN and SAP will jointly evaluate the progress of these KPIs against customer value on a regular basis and adjust SAP Enterprise Support until the quality measures are achieved

Expected Customer Benefits:

Clear understanding of the value the Enterprise support brings to SAP customer base

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1. About SUGEN

3. Timeline

6. Next Steps

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Benchmarking Objective

Benchmarking Objective:

Benchmark should provide a baseline to assess the value for using and

moving to mandatory Enterprise Support

We need benchmarking for two purposes:

First, solid benchmarking gives us the ability to quantify improvements over

time for a specific customer by exercising the benchmark on a regular basis.

Second, benchmarking will give our members the opportunity to benchmark

their individual situation against peers and other companies. This allows to

identify the areas where improvement must be achieved.

Support the value proposition of SAP Enterprise Support and justify the

investment of the customer

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Measure the current

environment

Allows to target what

does and does not

work well

Allows to put evidence

behind decisions

Compare performance

What is Benchmarking?

Before implementation

of enhancements

During business

operations

Continuous monitoring

of efficiency

What?

When?

Build a Business Case

Assess value

realization

Prove success

Enables continuous

improvement

Project the potential of

best practices

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Benchmarking Methodology and Deliverables

Key Performance

Indicators

Company-Specific Report

•Status of the company with regards to the defined KPIs •Health check of systems and core business processes •Potential for improvement

•Action plan

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Tangible results through ES

•Improved business processes and systems by converting KPIs into business value

•Improved support processes to reduce TCO based on SAP Standards for Solution Operations

2

Benchmark Analysis

•Year to year analysis of customer improvements (self-comparison )

•Peer-to-per comparison (with other customers)

3

Best Practice Adoption Gap to Qx &

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Benefits for Customers

to participate in Benchmarking

Gain insight into your business and IT Operations

Lay out a business case for change

Compare performance to other customers

Assess value realization, year-over year

Prove success

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1. About SUGEN

3. Timeline

4. SUGEN Benchmarking KPIs

6. Next Steps

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SUGEN/SAP ES Task Force 2009

Key milestones

Year 2009

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

CW 1-5 6-9 10-13 14-18 19-22 23-26 27-31 32-35 36-39 40-44 45-48 49-53 Key Events /

Milestones

Develop Benchmark Program with SUGEN

KPI Sign-off with SUGEN

Customer Sign-off with SUGEN

Initial Benchmark with customer (Create Benchmark Baseline) Performing Enterprise Support Offering/Services

Second Benchmark with customer

First SUGEN benchmark results

Conversion of KPIs into business value

Communicate high level Benchmark Survey results

KPI Sign-off with SUGEN

Customer Sign-off with SUGEN

First SUGEN benchmark results

Communicate high level Benchmark Survey results Sign-off on Result

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1. About SUGEN

3. Timeline

6. Next Steps

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SUGEN KPI Benchmark Approach

Acceptance criteria

Goal is to decrease the SUGEN KPI Index by 30% within the next 4 years aggregated over the customers participating in the Benchmark

Calibration of SUGEN KPI Index so that the achieved cost savings can be related to the price increase

Key Message

Benchmark should provide a baseline to assess the value for using and moving to mandatory Enterprise Support

All KPIs will be measured in the customer SAP Solution Manager (EhP1 or close to latest SolMan) KPI changes are clearly related to Enterprise Support

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SUGEN KPI Benchmark – KPIs to be measured

ES Value Drivers

SUGEN KPI Description

Business Continuity

Increase number of days without an outage

• Increase availability of systems and core business processes • unplanned downtime

• planned downtime

Reduce mean time to resolve • Accelerate customer incident resolution time

Reduce overall incidents • Reduce effort of total customer incidents

Business Process Improvement

Number of emergency changes • Enhance system stability by reducing emergency changes

Impact of change • Reduce effort for post go live stabilization and optimization

Number of failed changes • Reduce effort due to number and Effort of changes to be backed out

Innovation& Protection of Investment

On current technology stack • Customer can profit from latest innovations in mainstream or extended_{maintenance for application and technology stacks} Number of redundant custom

code/objects; functionality available on newer releases

• Reduce maintenance cost by eliminating unnecessary modifications

Total cost of Operations

CPU Utilization and "overall power

growth rate" • Decrease hardware costs (e.g. CPU) Storage Utilization and growth rate • Decrease storage costs

Run & Maintain work required for deploying support packages and enhancement packages

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SUGEN Benchmark KPI Index - structure

SUGEN Benchmark History / Trend

KEY MESSAGE

The SUGEN KPI measurements are provided to the benchmark customers by anIndex,not per single KPI

TheSUGEN KPI Indexis measured regularly as an aggregation of the benchmark Indices (KPIs)

Goal is to improve 30% improvement (cumulative) of theSUGEN KPI Indexwithin 4 years

SUGEN KPI Index will be calibrated so that the improved support delivered over time will be related to the phased in pricing

Objective:

Index decrease -30% within 4 years

Year 2009 2010 2011 2012 Total

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1. About SUGEN

3. Timeline

6. Next Steps

Agenda

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Criteria for customer selection

Release EMEA Americas APJ

SME ERP 6.0 15 7 6 SME ERP 2004 6 5 3 SME R/3 Ent. 11 6 4 LE ERP 6.0 4 6 4 LE ERP 2004 4 4 3 LE R/3 Ent. 5 4 3 Total 45 32 23

Release EMEA Americas APJ Total

ERP 6.0 19 13 10 42

ERP 2004 10 9 6 25

R/3 Ent. 16 10 7 33

Total 45 32 23 100

KEY MESSAGE

100 Customers will be targeted by SUGEN for the Benchmark according to SAP ERP Release and Market Segment. (Enterprise Support Maintenance fee paid for 2009)

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Pre-requisites for Participation

as SAP Enterprise Support Customer

Technical Requirements:

Customers agree to the terms of SAP Enterprise Support

Customers provide and maintain remote access via a technical standard procedure as defined by SAP

Customers provide a main contact person to work with SAP/SUGEN during the

Benchmark Program (Customers establish and maintain a SAP certified Customer COE is preferred)

Customers have installed, configured and be using productively, an SAP Solution Manager close to the latest patch levels for Basis, ABAP, and the latest SAP Solution Manager support packages (Solution Manager Enterprise Edition preferred)

Customers activate SAP EarlyWatch Alert for the Production Systems and transmit data to Participant's productive SAP Solution Manager Enterprise Edition system

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Other Requirements

Customers agree to support the Benchmark program over the next 4 years

Customers agree to work in a joint effort actively with SUGEN/SAP and to answer the Surveys to its best knowledge

Customers create together with SAP an action plan based on SAP’s recommendation and findings

Customers execute on the plan with the help of SAP

Customers agree that SAP/SUGEN can use the data anonymously and publish the results of the Benchmark Survey aggregated and anonymously

Pre-requisites for Participation

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1. About SUGEN

3. Timeline

6. Next Steps

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Next Steps

Analyze Results Assign Support Advisor Answer Benchmark Survey Create Benchmark Baseline Analyze Results Create Action Plan with Customer Customer /SAP Execute the Action Plan Conduct second Assessment Create Action Plan with Customer Create Customer specific Report Customer action needed

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