IBM and SAP Delivering enterprise solutions for a world on the move

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1 IBM and SAP Delivering enterprise solutions for a world on the move

2 Today s business environment rewards those who can act not only faster and more efficiently, but smarter. That means running the organization better by making the most of what is arguably today s most important asset information. It s about making information useful and available no matter where employees might be, and providing the tools and insights they need to make optimal, fact-based business decisions. Many organizations face major challenges in their efforts to become smarter, better-run businesses. With an increasingly mobile workforce, it is now essential to rethink how enterprise information is accessed and processes are deployed. Siloed information and poorly integrated business systems can make it difficult to act with speed and agility, which hurts competitiveness. The computing infrastructure itself may be hampering efforts to respond to new business demands. These issues all play out against a backdrop of economic stress where putting exactly the right capabilities in place quickly and costeffectively is essential. IBM and SAP are here to help clients answer these challenges. The decades-long alliance between these two industry leaders is marked by a keen emphasis on helping clients formulate and execute winning strategies. Our global reach and deep understanding of industry needs, business processes and how technology can be used to create meaningful change have enabled us to transform companies around the world, empowering them to unlock their true potential. 2 IBM and SAP: Delivering enterprise solutions for a world on the move

3 Responding to today s business drivers To better understand the current reality facing executives, IBM regularly enters into in-depth discussions with business leaders around the world. What s revealed influences how IBM and SAP respond to emerging business and technology issues facing organizations by extending our extensive portfolio and skill set with new and relevant offerings to help clients meet their current challenges. The findings of the 2011 IBM CIO study point to four key business imperatives: Expand: Refine line-of-business processes including customer relationship management and transportation management, and increase collaboration among the members of a more mobile workforce to infuse information throughout the value chain. Leverage: Streamline operations and enhance organizational effectiveness by making better use of information and getting it where it needs to be more effectively. Pioneer: Use what s been learned by taking advantage of both analytics-driven insight and more adaptable systems to enable radical innovation of products, markets and business models. Transform: Change the value chain through improved relationships, such as those enabled by more flexible information delivery and mobile access. The study s findings confirmed that today s executives better understand the importance of technology in turning data into information, insight and ultimately better decisions and that doing business flexibly, anytime, anywhere is becoming more widespread with the increasing connectivity and mobility of employees and customers. What s truly striking about the latest study is how quickly CIO priorities are shifting. Mobility is now the second most critical area of concern and the importance of cloud computing has nearly doubled compared to the 2009 study. This shows that companies are looking for fundamental change in the way they handle information and drive business operations.

4 The IBM and SAP alliance: A shared focus on our clients success IBM and SAP, two recognized industry leaders, are joined in their efforts to help clients build smarter businesses in a world focused on agility and the use of information as a strategic asset. Together, we develop powerful solutions that help make sense of information and use it to empower employees and organizations. Our sustained investment in best-in-class technology and services reflects a longstanding commitment to target our clients top-of-mind issues a promise that dates back nearly forty years. Our ongoing efforts build on what makes the alliance so valuable to our clients worldwide the complementary nature of leading SAP enterprise applications with IBM strategic consulting, services, hardware and software. SAP knows business processes and has the leading software to enable them. IBM has a deep understanding of information and business strategy, transformation, innovation and what it takes for organizations to be successful in a constantly shifting environment backed with world-class IBM infrastructure. This end-to-end expertise helps our clients make the most of investments in SAP software to streamline and improve every process across any organization. Today, we re enhancing our extensive joint portfolio with solutions that address the top-of-mind issues identified by executives. There are new offerings for cloud delivery and mobility to enhance productivity, service delivery and collaboration. Others, such as an in-memory analytic processing appliance, support businesses in their quest to create insight from a flood of information without affecting operations. In addition, new focused line-of-business capabilities based on SAP software powered by IBM infrastructure and services address the critical need for agility and efficiency in core business capabilities. 4 IBM and SAP: Delivering enterprise solutions for a world on the move

5 The strategic collaboration of IBM and SAP in development, product optimization and solution delivery aligns with our clients needs. We are dedicated to enabling positive business change, and constantly seek new ways to help them make better use of knowledge assets, building insight into every action, every day, through better information management that improves data and service quality. Together, we have made significant investments in world-class applications and infrastructure, as well as flexible delivery models that help our clients make more effective use of their information. Our teams of dedicated professionals are focused on one another s products and offerings, and bring a proven, consistent methodology for strategy, design and implementation to every engagement. We have one profitability analysis report that used to take more than two minutes to process 6.2 million records. The accelerator gets it done in less than a second so it s more than a hundred times faster. Martin O Connell, Team Leader, Business Intelligence Back-end, Caltex Australia Our clients benefit from our ability to provide joint solutions including line-of-business offerings such as CRM and industry-specific solutions for every size of organization, delivered quickly, cost-effectively and with minimal risk. The employment of best practices and optimization of products and services from both parties speeds time-to-value, because SAP and IBM offerings are designed to work together from the start. For example, the IBM DB2 database is used by SAP in the development phase, helping to ensure peak performance without the need for extensive tuning and customization. SAP has also specifically certified IBM cloud delivery environments for its software, giving clients peace of mind that their SAP deployment is reliable and secure. In addition, IBM offers SAP-specific services such as lifecycle management. IBM and SAP: Delivering enterprise solutions for a world on the move 5

6 IBM DB2: A leading database, tuned for SAP software IBM and SAP have products designed to work together, yielding tight integration, high performance and strong value. IBM DB2 is a key development platform for both SAP and IBM, and includes product features specifically built for seamless SAP software integration. As companies strive to become smarter, the opportunities that can emerge from intelligent and interconnected processes are unlimited. Unfortunately, budgets are not. Another tangible benefit of the IBM and SAP alliance is our ability to offer financing solutions through IBM Global Financing. IBM Global Financing can provide options to finance SAP solutions for companies of all sizes and industries. They can customize payment structures to meet your organization s financial needs and make the optimal solution affordable. They can offer highly competitive rates, flexible terms and the ability to offer multiple-period funding for the full solution including consulting services, software and hardware from IBM and non-ibm IT suppliers. IBM Global Financing can also accelerate your SAP project s cash flow break even point. Businesses running IBM DB2 on IBM POWER can achieve 1 : Up to 10 times the batch performance Processing speed of over one million transactions per minute, for up to 86 percent lower cost Lower total cost of acquisition and up to 69 percent lower energy costs As much as 68 percent smaller database size through data compression Improvements in response time of up to 20 percent Reductions in backup time of up to 65 percent. The strength of the IBM and SAP relationship is widely acknowledged by both industry analysts and the alliance partners themselves. According to The Forrester Wave 2011 Q2, IBM offers extensive strategy and business consulting, technical implementation skills and post-implementation support. And as a hardware vendor with a financing arm, it can often bundle together innovative deals and pricing arrangements for its clients. 2 In addition, SAP has awarded IBM its prestigious Pinnacle awards every year since its inception for a record total of IBM and SAP: Delivering enterprise solutions for a world on the move

7 Providing value through line-of-business and industry offerings Meeting today s business imperatives means using information more intelligently to streamline the organization and increase its flexibility. To do so, it is vital for critical processes to be made more efficient and effective. Together, IBM and SAP are helping clients meet this requirement with jointly developed, packaged line-of-business solutions that incorporate SAP software, IBM information infrastructure products and IBM services. By enhancing information sharing and process efficiency, our combined portfolio addresses a broad range of capabilities including customer relationship management, contract lifecycle management, supplier management, transportation management and extended warehouse management. Many of these solutions are available as cloud-based services, simplifying deployment and reducing or even eliminating the need for capital investment. Our alliance also leverages deep industry expertise to create focused, industryspecific solutions. Informed by learnings from decades of successful engagements, IBM and SAP have developed best-in-class roadmaps and reference architectures for a number of industries including banking, public sector, utilities, defense, retail and healthcare. This allows us to preconfigure and optimize both the application suite and the solution infrastructure, helping to dramatically reduce time-to-market and give clients a faster start on incorporating actionable information in every part of the business. Our core banking modernization will place us well ahead of our competitors. The new architecture behind the SAP platform gives us the power to treat IT as a utility. Michael Harte, Chief Information Officer, Commonwealth Bank Group of Australia IBM and SAP: Delivering enterprise solutions for a world on the move 7

8 Infusing insight into the whole organization IBM and SAP are putting a strong focus on helping our clients derive greater business value from the valuable and voluminous information they are gathering on everything from customers to key performance indicators. With analytics-driven insight, an organization can know the answers to critical questions before the competition and understand not only what is happening, but why. This deeper knowledge can help determine the best course of action at any moment in time. The major obstacle to this kind of dynamic business optimization is the inability to handle enormous amounts of data efficiently. The SAP HANA TM platform provides a hardware-software appliance that enables real-time intelligence through the use of in-memory computing to gain insights almost immediately. This ability to transparently leverage information keeps the focus where it should be on running the business day-to-day. DB2 has contributed to license cost savings of around 30 percent when compared with competitive offerings. Ultimately, IBM continuously improves DB2 with functionality designed to reduce the costs of operation and enhance system performance. Creighton Kelly, Director of IT, SAP Infrastructure, Newell Rubbermaid By combining the performance, scalability and cost-effectiveness of IBM infrastructure with SAP software in a single, optimized offering, SAP HANA represents another example of the value that our collaborative solution development brings to businesses. The SAP HANA appliance on IBM hardware can be easily and seamlessly added to any SAP implementation to deliver a fast return on investment. To help SAP HANA deliver on the promise of greater insight, dedicated IBM services for SAP analytics can help maximize the use of business intelligence throughout the organization. 8 IBM and SAP: Delivering enterprise solutions for a world on the move

9 SAP HANA: Coping with the flood of information Most businesses lack the ability to pull information from across the organization and turn it into action. There s simply too much of it to process efficiently and the situation is only getting more challenging. The in-memory computing approach used by SAP HANA leverages the speed of powerful IBM hardware to allow queries of hundreds of billions of records with a response time of under a minute. SAP HANA enables data to be accessed, explored, modelled and analyzed in real time, without impacting existing applications or systems. That makes using information and insight to optimize the business in real time not only possible, but practical.

10 Tomorrow s enterprise: Cloud-based and mobile Executives have said that more efficient information delivery and mobility are increasingly important to their ability to meet current business challenges. IBM and SAP are responding to the call for new, more agile computing and service delivery models by helping clients make the transition to cloud computing. The alliance is also enabling businesses to move beyond the desktop with new solutions that place enterprise functionality and information anywhere it needs to be boosting productivity and collaboration by putting it in the hands of those who need it, the way they want it. Cloud computing is changing the face of the enterprise, with its inherent flexibility, accessibility and efficient use of computing resources. IBM is meeting our clients demands for more affordable, efficient and flexible application, information and service delivery with cloud-ready infrastructure solutions and services. With options such as software-as-a-service that places SAP applications and data in a secure computing cloud, we can make clients implementations both more affordable and lower-risk. Businesses vary widely in their infrastructure requirements. Some benefit by teaming with a cloud provider to protect investments, while others are better served by keeping some or all of their cloud infrastructure within the data center. IBM can offer any variation of cloud infrastructure, using components that are SAP-certified for or an integral part of SAP solutions. This simplifies access to SAP infrastructure for organizations of all sizes and speeds return on investment. 10 IBM and SAP: Delivering enterprise solutions for a world on the move

11 Mobility represents another important change in the way organizations run. Unlike earlier technologies such as enterprise computing itself that first appeared in the workplace, mobile computing is being led by end users. Employees are bringing personal devices from home and finding ways to use them at work, which creates both opportunity and challenge for the business. With no control over the platform, this behavior can pose a security risk. Yet, at the same time, it represents the chance to dramatically improve productivity and agility. Together, IBM and SAP can help businesses evolve and take full advantage of a mobile strategy. IBM experts can develop scenarios, plan, implement and build out the infrastructure from end to end, leveraging SAP mobile enterprise application platforms and offerings such as security management. The integration of IBM infrastructure technology with SAP NetWeaver Gateway an initiative to create new ways to access SAP applications and data is also helping to build a critical link from enterprise systems to mobile and collaboration platforms. Creating direct access to SAP applications in the field marks a fundamental shift in the way they are used to generate business value, spreading both information and the ability to act on it across the value chain. A cloud-ready infrastructure helped Casa Oliviera reduce the time spent managing orders and associated invoices by 90 percent and decreased the proportion of tasks done manually from approximately 70 percent to 10 percent. IBM and SAP: Delivering enterprise solutions for a world on the move 11

12 Helping midsized businesses lead the way When it comes to using information to transform the business, midsized companies have the same goals as larger organizations but unique challenges. Without large IT staffs or budgets, they are looking for solutions that give them the ability to grow, leverage information and transform the business, while still being affordable and easy to own. IBM and SAP have met this need with dedicated IBM Express offerings for SAP. Tailored for midsized organizations and incorporating industry best practices to speed time-to-value, the Express portfolio helps to reduce risk and ensure that the right capabilities are put in place. As part of the Express portfolio, IBM products are combined with SAP software in SAP Business All-In-One vertical industry solutions. This simplified access to SAP functionality makes it easier to meet key technology mandates, with offerings focused on using information to run the business better. Many Express solutions for SAP build on the added expertise of SAP specialists within the IBM Business Partner ecosystem, as well as IBM Global Business Services. The joint teams are also listening to clients and finding new and innovative ways for midsized businesses to quickly and affordably tap the power of IBM and SAP. For example, a pay-as-you-go, per-user software rental model from IBM Global Financing allows payments for SAP Business All-In-One solutions to be made quarterly, on a three-, four- or five-year schedule, to help ease cash flow management. 12 IBM and SAP: Delivering enterprise solutions for a world on the move

13 IBM Global Business Services: Optimizing SAP investments Whether the aim is to increase workforce mobility, drive line-of-business efficiency or generate greater insight from information, improving business processes and getting the right SAP solution in place is essential. That takes intimate knowledge of SAP along with technology and business transformation experience at every level. IBM Global Business Services works with companies to transform their business to meet the demands of today. In addition, with an unmatched ability to manage SAP initiatives on a global basis and IBM s extensive business process knowledge, we are unique in our ability to work with clients to integrate all of their operations wherever they may be for a consistent view across the organization. The beauty of the solution is that everything is automatic and involves almost zero manual administration because all the data we deliver to clients is sourced directly from the back-end SAP ERP database. Emmanuel Grerier, Head of Information Systems, Implanet IBM services are delivered consistently to help design, build, manage and run successful and efficient SAP implementations. Our skilled professionals in 160 countries draw on knowledge gained from thousands of engagements. Our global reach is complemented by best-practices-based methodologies that span the entire engagement from strategy to execution. IBM drives transformation in key business processes that map closely to the critical mandates facing business leaders today. The right services can make the difference when seeking to achieve strategic goals. IBM Global Business Services has the strategic vision and the demonstrated ability to help organizations achieve results from their SAP investments.

14 Hubs for IBM and SAP expertise: Delivering knowledge and business results Addressing the need to make better use of information across the enterprise takes one thing above all else: knowing how to proceed with confidence, with the right solutions to enable transformation and the right partners to put them in place. IBM and SAP work together to engage with clients, build solutions and find the best answers for their pressing business needs. Our strong alliance has led to dedicated facilities for collaborative development, education and solution delivery more than 35 centers and labs globally, led by the IBM SAP International Competence Center (ISICC). Founded in 1993 and located close to SAP headquarters in Walldorf, the ISICC focuses on: Mutual product enablement and endorsement Customer executive briefings and technical expert workshops SAP-specific technical enablement activities for customers and business partners Technical assets for IBM and SAP go-to-market Sizing methodologies for the SAP solution portfolio helping customers to right-size their investments The network includes a Global SAP Center of Excellence a hub for coordinating IBM Global Business Services with SAP as well as a worldwide network of Global Delivery Centers and Customer Briefing Centers. Together, these help clients understand and decide on the right IBM and SAP solutions for their specific requirements. Our industry thought leadership is put into practice at the IBM Industry Solution Centers. These facilities address the critical need for industry-specific SAP solutions and demonstrate a range of highly targeted offerings such as Automated Meter Management for Energy and Utilities, Patient Record Management solutions for healthcare and many more. 14 IBM and SAP: Delivering enterprise solutions for a world on the move

15 Together, rising to the challenge of today s business The IBM and SAP alliance is built on a tradition of teamwork and dedication to providing solutions for the most complex challenges facing businesses today. The strength of our relationship gives us an unparalleled ability to help companies thrive in today s environment, with a powerful blend of knowledge, strategy, offerings and services. That s our shared focus and commitment to clients: to enable effective transformation for businesses of all sizes in all industries, and around the world, to help them become more agile, more effective organizations. We can show clients how to turn challenges into opportunities, using technology and insight to fulfil the promise of smarter business. To learn more about how the SAP and IBM alliance can help you succeed in a changing world, contact: The IBM SAP International Competence Center Altrottstrasse 31 D Walldorf Germany ISICC@de.ibm.com Phone: You can also visit our alliance website at: ibm-sap.com Join the conversation IBM and SAP Alliance YouTube channel youtube.com/user/ibmsapalliance IBM and SAP Alliance on Twitter twitter.com/ibmsapalliance IBM and SAP Alliance LinkedIn Community linkedin.com/groups?gid=

16 Copyright IBM Corporation 2011 IBM Corporation 1 New Orchard Road Armonk, NY U.S.A. Produced in the United States of America September 2011 All Rights Reserved IBM, the IBM logo, ibm.com, DB2, Global Business Services and POWER are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol ( or TM), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the web at Copyright and trademark information at ibm.com/legal/copytrade.shtml Other company, product, or service names may be trademarks or service marks of others by SAP AG All Rights Reserved SAP AG Dietmar-Hopp-Allee 16 D Walldorf Germany SAP 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 informational purposes only. National product specifications may vary. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ( SAP Group ) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. 1 Metrics are based on comparisons to other leading databases in representative SAP implementations. 2 Forrester Research Inc. The Forrester Wave TM : SAP Services Providers, Q2 11, April 2011 SPB03001-USEN-06