Joachim Schaper VP Americas - SAP Research, SAP Labs, Palo Alto

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1 SAP RESEARCH Joachim Schaper VP Americas - SAP Research, SAP Labs, Palo Alto

2 Summary of SAP Today SAP AG in 2003 revenues: 7.0 billion 76,100 installations More than 22,600 companies run SAP Providing 27 Industry Solutions 30,166 SAP employees (March 2004) 12 million users in 120+ countries team with us to Integrate their business processes Extend their competitive capabilities Get a better return on investment at a lower total cost of ownership Unique Partner Ecosystem More than 1,500 partners Overall more than 180,000 SAP partner certificates

3 Foundation for Adaptive Enterprise COMPOSITE APPLICATION FRAMEWORK SAP NetWeaver The Open Integration and Application Platform Powers the Adaptive Enterprise PEOPLE INTEGRATION Multichannel/device access access Portal Collaboration INFORMATION INTEGRATION Bus. Intelligence Knowledge Knowl. Mgmt Mgmt Master Data Management PROCESS INTEGRATION Integration Bus. Process Broker Mgmt APPLICATION PLATFORM J2EE ABAP DB and OS Abstraction LIFE -CYCLE MANAGEMENT... Auto-ID Infrastructure integrates RFID data Enterprise Portal for customer and supplier access Business Analytics with predefined content Master Data Management for harmonized product/customer data Exchange Infrastructure for hub-and-spoke integration Business Process Management to drive cross-enterprise processes Web Application Server for extensibility with Java applications

4 SAP s Blueprint for Sustainable Success Enterprise Services Architecture is a Web-services based architecture for adaptive business solutions Business solutions for 27 industries mysap Business Suite, SAP xapps SAP NetWeaver Adaptive computing infrastructure

5 Vision & Mission of SAP Research Vision SAP Research is the world-class thought leadership partner to SAP and SAP s customers & partners Mission SAP Research prepares the groundwork for future growth by acting as SAP s IT Trend scout, identifying emerging IT trends, researching and developing in strategically important SAP business areas as well as leveraging entrepreneurial inventive talent. Its two key departments, each with a dedicated focus, are SAP Research Centers/Groups and SAP Inspire supported by dedicated Business Development and Operations Theme Systematic Thought Leadership for Innovative Business

6 SAP Research Programs & Domains

7 Smart Items in the Enterprise

8 Overcome Media Breaks Close the Gap Manual data entry Voice input Barcode scanning RFID Sensor Nets Embedded Systems Media Breaks Digital world ( Bits ): Inter- and cross-company information systems (e.g.: ERP systems) Local, regional and global communication networks (e.g.: Internet) Physical world ( Atoms ): Human beings Products Productions means State-of-the-art Next Generation Smart Items Source: M-LAB Degree of automation

9 Next Generation Smart Items Vision A holistic service-oriented architecture for the seamless integration of real world data and events with enterprise software that efficiently exploits the capabilities of current, emerging and future ubiquitous computing technologies like embedded systems and wireless sensor networks, used reliably to assist enterprise-level decision making.

Auto-ID Infrastructure and Smart Items Asset Management Warehouse

memory and computation Middleware infrastructure Solution Opportunities

Challenges Handling business logic locally Data consistency and

10 Auto-ID Infrastructure and Smart Items Asset Management Warehouse Management Manufacturing Definition Tagging with physical object Local memory and computation Middleware infrastructure Solution Opportunities Seamless integration Real-time information Increased data accuracy Key Challenges Handling business logic locally Data consistency and convergence Management of massive devices and remote systems Passive RFID Tag Active RFID Tag Sensor

11 Future Trends HW Capabilities Client-Server Embedded Systems Promise Auto-ID Peer-to-Peer Next Generation Smart Items CoBIs Wireless Sensor Networks Communication Business logic Basic algorithms PROMISE IT-Infrastructure (AII) Data / Information Acquisition HW Capabilities Embedded Systems CoBIs Synergies Holistic Architecture (AP) Business Logic & Data Acquisition Communication Wireless Sensor Networks

12 EU Project: CoBIs Collaborative Business Items EU = European Union Vision & Objective Apply wireless networked sensor systems to embed business logic in physical entities Holistic service-oriented architecture covering all layers from application to hardware Vision: Ubiquitous ESA HW Capabilities Client-Sever Embedded Systems Peer-to-Peer Collaborative Smart Items Paradigm switch from Client-Server to P2P based Smart Items Computing Auto-ID Wireless Sensor Networks Innovation Business logic on-the-item Communication Extending business processes to the Point of Action Collaboration in sensor networks / networked embedded systems Innovative applications with BP and Gardeur

13 EU Project: CoBIs Partners EU = European Union BP, UK: End user Infineon, AT: RFID SAP, GER: Enterprise Software Ambient Systems, NL: Networked Embedded Systems University of Karlsruhe, GER: SmartIts sensor nodes University of Lancaster, UK: Context Awareness University of Twente, NL: EYES sensor nodes

EU Project: PROMISE EU = European Union PROMISE = Product Lifecycle Management and Information Tracking using Smart Embedded Systems HW Capabilities

delivery, to end-oflife, and back to design and production Improve product and service quality, efficiency, and sustainablity Auto-ID Wireless Sensor

14 EU Project: PROMISE EU = European Union PROMISE = Product Lifecycle Management and Information Tracking using Smart Embedded Systems HW Capabilities Client-Sever Embedded Systems Peer-to-Peer Collaborative Smart Items Business logic Objectives Close the product lifecycle information loops from product delivery, to end-oflife, and back to design and production Improve product and service quality, efficiency, and sustainablity Auto-ID Wireless Sensor Networks Communication Basic algorithms 22 partners, 15.5 Mill, 3.5 years universities, SMEs, SAP AG end-users: automotive, railway, consumer products, telecommunication

Project: Smart Vending Center Objectives Integrate vending machines into business process Provide platform for low-risk RoI analysis Gain experience from real world Application Areas (Near) real-time

15 Project: Smart Vending Center Objectives Integrate vending machines into business process Provide platform for low-risk RoI analysis Gain experience from real world Application Areas (Near) real-time and predicted inventory Advanced Data Analysis Remote Management Remote Monitoring Cash Accounting Photo: Harting Current Partners Harting Vending GmbH Lantec AG M-Lab TecO Running Prototypes Cigarettes (Dietz) Prepaid phone cards (Baumann) Cafeteria accounting (SAP)

16 Many Processes Can Be Auto-ID Enabled Asset Management MRO mysap PLM Value Added Services mysap SRM mysap ERP Financials Human Resources Corporate Services Operations mysap CRM Field Service mysap SCM VMI/CPFR Manufacturing SAP NetWeaver Service Parts Planning Warehouse Management

40 Human Integration Core Services Activity & Process Management Configuration & Admin Management

17 Auto-ID Infrastructure Architecture High Level Enterprise Applications I RFID Reader I I I Sensor Network I S Device Controller Device I I Controller I Device Integration SAP Web AS 6.40 Human Integration Core Services Activity & Process Management Configuration & Admin Management Association Data Management Logging & Archiving AII Backend System Integration XI mysap ERP mysap SCM ONS/PML Server Other

18 Real-Time Information for the Real-Time Enterprise Devices People roles embedded analytics collaboration roles alerts Information Legacy SCM ERP A2A PLM CRM B2B SRM CRM PLM Smart Items RFID Embedded System Mobile Sensors Media Breaks Sensor Network Physical World

19 Holistic Service-Oriented Architecture Optimized Business Solutions Enhanced & New Business Applications Ubiquitous AP&A Business Logic On-the-Item Ubiquitous NetWeaver Communication, Collaboration and Sensing Services Sensors, Sensor Networks & Embedded Systems

Emerging Applications Environment, Health & Safety Dangerous goods Workplace safety Environmental monitoring Defense & Security Emergency response Electronic seals Defensive /

20 Emerging Applications Environment, Health & Safety Dangerous goods Workplace safety Environmental monitoring Defense & Security Emergency response Electronic seals Defensive / military applications Remote Control & Monitoring Process, plant, transport monitoring Product Lifecycle / Asset Management Preventive maintenance Facility management / home automation

21 Q&A Contacts

22 Copyright 2004 SAP AG. All Rights Reserved No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, WINDOWS, NT, EXCEL, Word, PowerPoint and SQL Server are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iseries, pseries, xseries, zseries, z/os, AFP, Intelligent Miner, WebSphere, Netfinity, Tivoli, Informix and Informix Dynamic ServerTM are trademarks of IBM Corporation in USA and/or other countries. ORACLE is a registered trademark of ORACLE Corporation. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, the Citrix logo, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, MultiWin and other Citrix product names referenced herein are trademarks of Citrix Systems, Inc. HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of Technology. JAVA is a registered trademark of Sun Microsystems, Inc. JAVASCRIPT is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. MarketSet and Enterprise Buyer are jointly owned trademarks of SAP AG and Commerce One. SAP, R/3, mysap, mysap.com, xapps, xapp, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves information purposes only. National product specifications may vary.

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