Delivering Operational Excellence with Innovation.

SAP White PapermySAP ERP
DELIVERING OPERATIONAL
EXCELLENCE WITH INNOVATIONEnterprise Services Architecture for Enterprise Resource PlanningCopyright 2006 SAP AG. All rights reserved. HTML, XML, XHTML and W3C are trademarks or registered© trademarks of W3C®, World Wide Web Consortium, No part of this publication may be reproduced or transmitted in Massachusetts Institute of Technology. any form or for any purpose without the express permission ofSAP AG. The information contained herein may be changed Java is a registered trademark of Sun Microsystems, Inc.without prior notice. JavaScript is a registered trademark of Sun Microsystems, Inc.,Some software products marketed by SAP AG and its distributors used under license for technology invented and implemented contain proprietary software components of other software by Netscape. vendors. MaxDB is a trademark of MySQL AB, Sweden.Microsoft, Windows, Outlook, and PowerPoint are registeredtrademarks of Microsoft Corporation. SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, andother SAP products and services mentioned herein as well as theirIBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, respective logos are trademarks or registered trademarks of SAPMVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iSeries, pSeries, AG in Germany and in several other countries all over the world.xSeries, zSeries, z/OS, AFP, Intelligent Miner, WebSphere, All other product and service names mentioned are theNetfinity, Tivoli, and Informix are trademarks or registered trademarks of their respective companies. Data contained in thistrademarks of IBM Corporation. document serves informational purposes only. National productspecifications may vary.Oracle is a registered trademark of Oracle Corporation. These materials are subject to change without notice. These UNIX, X/Open, OSF/1, and Motif are registered trademarks materials are provided by SAP AG and its affiliated companiesof the Open Group. ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, not be liable for errors or omissions with respect to the materials.VideoFrame, and MultiWin are trademarks or registered The only warranties for SAP Group products and services are thosetrademarks of Citrix Systems, Inc. that are set forth in the express warranty statements accompanyingsuch products and services, if any. Nothing herein should be construed as constituting an additional warranty.
2CONTENTS
Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Enterprise Resource Planning: Strategies and Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
The Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Why Consolidation Is Difficult. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Why Innovation Is Difficult. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Why Outsourcing Is Difficult . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
The Solution to Becoming an Adaptive Enterprise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Embracing Innovation and Achieving Operational Excellence. . . . . . . . . . . . . . . . . . . . . . . 10Business and IT Consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10- Example: Consolidating HCM as Shared Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Business-Process Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11- Example: Extending the Quotation Process to More Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11- Example: Reengineering the Employee On-Boarding Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12- Example: Reengineering the Procure-to-Pay Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12- Example: Int... [download for more]