SAP Business One OnDemand for Partners Value Proposition and Partner Opportunity. February PDF Free Download

SAP Business One OnDemand for Partners Value Proposition and Partner Opportunity February 2013

Purpose of this document This document provides an overview of SAP Business One OnDemand s market opportunity and value proposition for partners, including: 1. Market Opportunity 2. B1 ondemand Overview & Positioning 3. B1 ondemand Partnering 4. Partner Edge Detail 5. Engaging with SAP 6. Partner Enablement 7. Partner Add-ons and Innovations 8. Transitioning from SbH to OnDemand Model This deck is not for external use. It is intended for prospective SAP OnDemand partners. 2011 SAP AG. All rights reserved. / SAP Business One Confidential 2

Agenda 1. Market Opportunity 2. B1 ondemand Overview & Positioning 3. B1 ondemand Partnering 4. Partner Edge Detail 5. Engaging with SAP 6. Partner Enablement 7. Partner Add-ons and Innovations 2011 SAP AG. All rights reserved. / SAP Business One Confidential 3

Market potential for ERP in the cloud SMEs are a high-growth market SaaS and Cloud ERP Trends in 2011 Only 9% of current ERP deployments use the SaaS model, compared to 72% on-premise. But that is changing and SMBs are leading the way. SMB External IT Spending Worldwide (2008 2014) By 2014, the SMB market is projected to grow to more than $1 trillion, with a five-year compound annual growth rate (CAGR) of 5.7%. 20% 15% 10% 5% % ERP deployments in SaaS model 17% 8% 2% 500 400 300 200 100 IT spendings in 2014 $B 378 354 298 5.8% 5.2% 6.3% 10.0% 8.0% 6.0% 4.0% 2.0% 0% Small enterprises Midsize enterprises Large enterprises 0 Small businesses (1-99 employees) Low-end midsize businesses (100-499 employees) High-end midsize businesses (500-999 employees) 0.0% Source: Aberdeen Group SaaS and Cloud ERP Trends, Observations and Performance 2011. Source: Gartner Dataquest Forecast Analysis: Small-and-Midsize-Business External IT Spending, Worldwide, 2008-2014, 3Q10 Update. 2011 SAP AG. All rights reserved. / SAP Business One Confidential 4

U.S. SB vs. MB current and planned use of cloud/ Software as-a-service 2011 Small Business Mid-Sized Business Currently use Cloud/SaaS 13.4% 35.9% Plan to Use in Next 12 Months 13.5% 31.5% Interested, but No Plans 40.6% 13.9% Not Interested 15.9% 10.3% Don t know/no answer 16.6% 8.4% Source: IDC s SMB Survey 2011 2011 SAP AG. All rights reserved. / SAP Business One Confidential 5

Cloud adoption increasing Q. Please estimate how much of your company's IT budget will be allocated to buying and managing these different types of IT services 100% 11% 13% 90% 11% 80% 15% 70% 16% 16% 60% 13% 50% 19% 40% 30% 49% 20% 37% 10% 0% Today 24 Months Source: IDC Cloud Survey (unpublished), December 2010 n=603 +12% Public Cloud Private Cloud - Hosted Outsourced IT Private Cloud Inhouse Traditional IT Public cloud is transformative and challenges all our notions about how IT is bought, staffed, operated, and capitalized Private cloud is evolutionary for the vast majority of enterprises, and the likely on-ramp to cloud for the next 24 months Hybrid approaches to IT delivery are already a standard, but crossplatform management is the next frontier 2011 SAP AG. All rights reserved. / SAP Business One Confidential 6 IDC NA Cloud Computing Survey, January 2011 n=603

SMEs are looking to benefit from cloud deployments Provide managed IT infrastructure with minimal investment to free up resources Streamline operations and increase business insight Large upfront capital expenses become predictable operational costs Lower total-cost-ofownership by pooling resources Ability to securely store and access data regardless of location Increase business agility and scale effortlessly as business grows 2011 SAP AG. All rights reserved. / SAP Business One Confidential 7

Agenda 1. Market Opportunity 2. B1, B1 ondemand Overview & Positioning 3. B1 ondemand Partnering 4. Partner Edge Detail 5. Engaging with SAP 6. Partner Enablement 7. Partner Add-ons and Innovations 2011 SAP AG. All rights reserved. / SAP Business One Confidential 8

SAP Business One: Proven success with SMEs and subsidiaries worldwide Dedicated to helping our customers Run Better 34,000+ SAP Business One customers 1,500+ LE affiliates running SAP Business One 80+ Countries running SAP Business One - 40 country localizations, 27 languages 2011 SAP AG. All rights reserved. / SAP Business One Confidential 9

SAP Business One: Delivering Innovation, Flexibility and Customer Choice Manage TCO Extend the solution scope Enhance solution enablement for partners Orchestrate integration and collaboration Cover standard business processes end-to-end Full flexibility on deployment Run completely inmemory technology 2011 SAP AG. All rights reserved. / SAP Business One Confidential 10

SAP Offers SME Customers Choice Most scalable: Ideal for ME companies with highly industry-specific needs; Hosting option available Easiest to consume: Ideal for ME companies preferring no IT ; Available on-demand only Midsize Companies Most affordable: Ideal for growing SE needing an entry-level ERP; Available on-premise or on-demand (hosted by partners) Small Businesses On Premise Cloud/On-Demand 2011 SAP AG. All rights reserved. Confidential 11

SAP Business One OnDemand SAP Business One OnDemand solution is a cloud-based, integrated business management solution designed specifically for small businesses or subsidiaries of large enterprises, offered exclusively through partners Benefits Complete Simple SAP Business One is an end-to-end solution offering financials, customer relationship management, inventory management functionality and more (all essential business functions come from SAP or partners) Easy to set up, use, and customize Scalable As business needs change, leverage pre-integrated partner solutions Affordable Competitively priced, get started with just a few users 2011 SAP AG. All rights reserved. / SAP Business One Confidential 12

Value of running SAP Business One in the cloud SAP offers an affordable business management solution that provides Choice, Ease, and Flexibility Choice Run SAP Business One on-premise or in the cloud Ease Let SAP s partners host and manage the system Flexibility Our solution adapts and scales with your business Cloud 2011 SAP AG. All rights reserved. / SAP Business One Confidential 13

SAP Business One OnDemand partners New partnerships SAP Business One OnDemand provides partners the opportunity to give customers choice of deployment. Partners benefit by strengthening and expanding their portfolio of offerings while simplifying and expediting customer delivery, increasing share of wallet and providing new services. Partners delivering Business One for the first time: Help customers realize the benefit of consolidating deployment, support and services/sales touch points Offer SAP Business One in a hosted environment Provide ability to scale globally with ease Extend a full suite of services, thus increasing share of wallet in current and prospective accounts 2011 SAP AG. All rights reserved. Confidential 14

Partnership model for SAP Business One OnDemand Business opportunities for new partners Strategic Partners Offer end-to-end services (e.g., hosting, cloud infrastructure and support) One point of accountability for all service needs Examples: Hungarian Telecom and Seidor Infrastructure Partners Provide hosting services for customers, typically a data center Manage and maintain customer software solution at remote site Can cover several countries Value Added Resellers One point of accountability for all service needs Ensure smooth go live and are often main point of contact 2011 SAP AG. All rights reserved. Confidential 15

The Business One OnDemand Model Partner contract Value Added Reseller Customer contract Business One OD customer subcontracting Infrastructure Partner certification Infrastructure/ hosting provider subcontracting Partner contract Strategic partners Customer contract Business One OD customer 2011 SAP AG. All rights reserved. Confidential 16

SAP Business One OnDemand: VAR Partnership Value Added Resellers sell the packaged offering with implementation and support services as a package to their customers. They work with Infrastructure partners in a cooperative GTM approach to deliver OnDemand solutions. VARS can focus on the implementation and pre-sales. Hosting and software maintenance is fully transparent to them and handled by the Data Center VAR partners can be from various countries, focus on specific industries, provide support to customers locally (and in local language) Central application management ensures that the whole landscape is up to date and all updates are managed centrally which lowers the TCO Ensure add-ons are sufficiently tracked and updated between VARS and Infrastructure partner to ensure customer continuity 2011 SAP AG. All rights reserved. Confidential 17

SAP Business One OnDemand: Infrastructure Partnership Certified Data Center provides hosting infrastructure without any SAP Business One installation or services. Provides Data Center Provider and SAP Business One Partner clear revenue and responsibility delineation Clear chain of responsibility Potential VAR partner OnDemand solution branding Requires SAP Business One partner to build expertise in cloud provisioning technologies and processes Data center can enable all SAP Business One OnDemand Business models, as required Upside potential with Add-On packages 2011 SAP AG. All rights reserved. Confidential 18

SAP Business One OnDemand: Strategic Partnership Strategic Partners deliver SAP Business One and all services (implementation & support) in one package directly to customers. Partner serves as one stop location for all customer needs Strategic Partners are globally present, with ability to easily scale to meet customer expectations Data Center has a full control over installed SAP Business One components Manages all updates / upgrade of SAP Business One landscape Can fully utilize and share all HW and SW resources among multiple customers Central application management ensures that landscape is up to date and all updates are managed centrally, thus lowering TCO 2011 SAP AG. All rights reserved. Confidential 19

Partner profiles Responsibilities Strategic Partner Infrastructure Partner Linked GTM Marketing Branding Selling Implementation ( ) Hosting ( ) L1/L2 support ( ) L3 support Invoicing VAR ( ) = included / not included, depends on Partner * = See appendix for hosting requirement for B1 Cloud certification 2011 SAP AG. All rights reserved. Confidential 20

Partnership Benefits How You Benefit Provide new business models to existing customers Enter new markets Leverage proven and established Business One on premise success Up-sell opportunity Utilize SAP marketing and branding for your own efforts Extend your solution portfolio What SAP Provides Training Local product experts to help provide sales support in all regions Marketing content, programs and Tools Exposure to SAP Customer Base Access to partner ecosystem to expand your market reach 2011 SAP AG. All rights reserved. Confidential 22

Grow Faster Award winning program that that helps partners expand market opportunities and drives customer success Accelerate Engagement Sales marketing, program and technical resources that ensure effective SAP engagement opportunities and drives customer success Enhance Collaboration Partnership tools to provide transparency and increase collaboration 2011 SAP AG. All rights reserved. Confidential 23

Program Benefits Different Partnership options with increasing benefits Engagement scenarios based on your potential Recognition as part of the SAP network at all levels Partnership opportunity that fits your capabilities and objectives Interactive Collaboration workspace One global partner program framework Manage My Partnership tool Differentiation with Validated Expertise designation (VARs) Access to SAP partner network Continuous education & portfolio expansion Free level 1 e-learning Access to expert sessions Solution validated expertise SAP solution portfolio to expand your business to different markets and industries 2011 SAP AG. All rights reserved. Confidential 24

VARs have three different partnership levels with related benefits All the benefits of Silver Gold Logo Branding Highest MDF Highest Service Entitlements All the benefits of Bronze Advisory Boards Increased MDF Increased Service Entitlements Standard Benefits Package SW Discount MDF (if available in region) Service Entitlements Standard Benefits Package General Program Benefits Business Enablement Benefits Technical Support Partner Education Marketing and Selling Support Solution Development Support One program level for all VARs regardless of how many products sold 2011 SAP AG. All rights reserved. Confidential 25

Region Specific Program Information provides Requirement, Benefit, and Value Point Details Get acquainted with your regional requirements - a quick reference. 2011 SAP AG. All rights reserved. Confidential 26

Understanding business objectives to be completed by prospective VAR partnerships By filling in this template, you help us Understand your business profile, your specific way of doing business as a partner, and your viability as an SAP Business One Solution Reseller Align our and your expecations around the Solution Reseller model and a potential partnership with SAP Ramp up your SAP Business One practice once a partner contract has been signed Assess your sales needs and how we can support you Work more effectively with your organization by ensuring that we assign the right resources to you to help meet joint business goals 2011 SAP AG. All rights reserved. Confidential 28

Financial information (partner) Criteria Value (currencies in k) Revenue Financial rating Revenue/person Revenue blend Revenue sources Financial reserve Growth Percentage of revenue created by partnerhships Profit margin (pre-tax) (profit before taxes/net sales) Asset turnover (net sales/total assets) Return on assets (profit before taxes/total assets) Financial leverage (pre-taxt)(total assets/net worth) Return on net worth (pre-tax)(profit before taxes/net worth) Collection period Inventory holding period AP payment period Cash cycle 2011 SAP AG. All rights reserved. Confidential 29

Go to market information (partner completed) Criteria Value (currencies in k) or information Target or Niche Markets Client Base & Size User Base / Reference Sites Experience In Volume Business Horizontal Market Experience Portfolio Competition Years in Business 2011 SAP AG. All rights reserved. Confidential 30

Partner organizational structure information Criteria Value (currencies in k) Management Track Record Approach to Implement Strategy Fast Experience With Sub Channel Management Structure SaaS / Hosting Track Record / Understanding Mind-set Strategic Relevance of Business One Additional Business Board of directors or advisory board (# of people, percentage of outsiders) Frequency of planning process with feedback loops including vendors? CEO/direct report access for SAP Number of Employees Business One Marketing Contact Business One Sales Contact FTE to be assigned to Business One Pre-Sales FTE to be assigned to Business One Consulting FTE to be assigned to Business One Key User Support 2011 SAP AG. All rights reserved. Confidential 31

Activity planning 2011.HY2 2012 2013 2014 Overall goal for quarter/year (non- KPI, e.g. Reference creation, segment lead,...) Target segments (industry, geo, company size, other characteristics) Marketing/PR activities Employee education Others 2011 SAP AG. All rights reserved. Confidential 33

Marketing and sales activity planning in detail Activities 2011/2012 Advertising Online Activity Dialogue Events References Tele Outbound 10 11 12 01 02 03 04 05 06 07 08 09 10 2011 SAP AG. All rights reserved. Confidential 34

SAP Business One Partner Organizational Structure CEO Name Bus. One Lead Name TSE Lead Name Solution Advisor Lead Name Service Advisor Lead Name Marketing Name TSE Name Solution Advisor Name Service Advisor Name... Please indicate when the resource is going to be on board, in case they have not been hired so far Minimum staffing requirements: Account Executive min. one dedicated qualified full-time resource Solution Advisor min. one resource qualified Service Advisors min. one dedicated, plus one other individual having qualified 2011 SAP AG. All rights reserved. Confidential 35

Agenda 1. Market Opportunity 2. B1 ondemand Overview & Positioning 3. B1 ondemand Partnering 4. Partner Edge Detail 5. Engaging with SAP 6. Partner Enablement 7. Partner Add-ons and Innovations 8. Transitioning from SbH to OnDemand Model 2011 SAP AG. All rights reserved. Confidential 37

Partner Enablement Resources at your Fingertips Cannel Partner portal Partner Enablement Calendar On-Line Training Dedicated PSA Social media SDN Implementation tools For all partner types 2011 SAP AG. All rights reserved. Confidential 38

VAR Enablement Ready Set Go Sales Executive Selling SaaS solution On Demand value proposition and business module Try and buy scenarios Rules of communication and engagement Competitive comparison Private cloud strategy and business module TCE training Elearning sales certification Presale Getting started document (?) OnDemand white paper TCE training CCC training Demo2Win Discovery2Win LCM in the cloud FAQ document Level 1 and 2 presales certification On Demand landscape infrastructure Product Elearning Consultant TCE training CCC training LCM in the cloud B1 product training B1 how to guides Consultants certification Implementation and support processes Implementation methodology Implementation tools 2011 SAP AG. All rights reserved. Confidential 39

Infrastructure (Hosting) Partner Enablement GTM and Engagement Infrastructure Maintenance Partnership: VAR, SSP, customers, 3rd party Total Cost of Ownership Tool Leads Tracing and Distribution Total Customer Experience B1 Architecture B1 Sizing/System Requirements Landscape Set up /Administration guide Demo Systems (Try & Buy) Setup & Maintenance Service Unit Setup and Provisioning License Management Add-on Management Control Center Reporting Remote Support Platform Lifecycle Management Upgrades User Management Customization Operations, Monitoring and Support 2011 SAP AG. All rights reserved. Confidential 40

SAP Business One Partner Add-ons Partner add-ons are proven and preconfigured solutions pre-integrated with SAP Business One to address specialized industry, business process, mobile, and other challenges. Transitioning add-ons to the cloud: Centralized management in Cloud Control Center Installation Upgrades Provisioning Reporting for billing purposes Certification is available to ensure Compatibility Reliability Security Continuity 2011 SAP AG. All rights reserved. Confidential 42

SAP Business One OnDemand Cloud Control Center for partners Trigger Adapt / Extend Find the solution Enhanced Support and Application Management via RSP Use/Get support Solution Center Try (Trial / Demo) Enhanced Mobile Integration Implement / Go Live Select / Purchase Complete Partner- Initiated Lifecycle Management Provisioning Wizard in the Cloud Control Center for SAP Business One OnDemand 2011 SAP AG. All rights reserved. Confidential 43

SAP Business One Users Cloud Operators Web Access Portal Application Management Service Unit Tenant Tenant Infrastructure Management Dedicated to a Single Service Unit Cloud Control Center Database Instance Shared between Multiple Service Units Infrastructure Components Application Servers Company Databases Common Database Shared Folders Integration Mailer* Component* Software Repository License Server Remote Support Platform* System Landscape Directory Servers Domain Controller SAN * Optional 2011 Components SAP AG. All rights reserved. Confidential 44

Thank you! Questions?

SAP Business One OnDemand for Partners Value Proposition and Partner Opportunity. February 2013