Frequently Asked Questions SAP Business One

STARTER PACKAGE
Lean, Easy, Fast to Implement, and Affordable

About the Starter Package What is the goal of the Starter Package?
The goal is to address the needs of the small business market, i.e. customers between 1-5 users. Whereas in the past SAP was addressing the market with a special promotion (start&go), the Starter Package is a permanent offering for this market segment.

Whats the business imperative behind this offering?

While today many of our partners already offer SAP Business One to small customers as a fixed price project, these same customers see the value of the advanced features and customization options, and therefore request extensions of the project scope. These changes to project scope result in the need for a greater budget and thus, partners are faced with constant struggle to keep the project within scope.

What are Starter Package details?

The starter package provides a limited-scope version of SAP Business One, offered at a reduced price, and with the following restrictions: 1) The Starter Package user has a limited functional scope (see second chapter). 2) A customer can buy a maximum of 5 Starter Package users. If a customer requires more users, they may choose the standard edition of SAP Business One requiring all Starter Package users to be upgraded to either Professional or Limited Users. 3) A Starter Package user cannot be combined with any other existing user types. 4) A Starter Package customer keeps the restricted functional scope until he upgrades to the standard edition.

Who is the target customer?

The SAP Business One starter package addresses fundamental business requirements with basic finance, sales, purchasing, and inventory functionality. This functional scope is particularly suited for companies in the wholesale distribution, high-value-item retail, and light professional service industries. It is well suited for companies who are Using MS Excel for managing their business Using accounting software Using a non-integrated business management system The starter package is ideal for start-ups and growing companies that want to get and running quickly with minimal investment and risk, and those that do not initially require more than five software user licenses. When growing over time or requiring additional functionality, customers can easily upgrade to the standard edition of SAP Business One.

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How much does it cost?

The Starter Package license costs some 40% of the Professional User license. When upgrading to the standard SAP Business One edition, customers pay the delta price between the Limited CRM, Limited Logistics, Limited Financials, Professional User and the Starter Package user, plus a small administrative fee. For more detail, please refer to your local price list.

Isnt there a risk that we compete with our existing SAP Business One sales?

Before launching the Starter Package, we have talked to a lot of partners, and have carefully analyzed the situation to ensure we do not cannibalize existing sales. We have ensured a smooth upgrade path from the starter package to the full Business One product (see question above) to ensure the difference between the two offerings is understood and seamless. The goal of this offering is to allow prospects and customers to try out Business One in a limited functionality setting. With the restrictions mentioned above, we are confident that that the Starter Package will generate additional revenue and not compete with existing sales.

Why should partners sell the Starter Package?

The advantages include: 1) The Starter Package helps partners to better compete in the lower end of the SME market. 2) Partners can address new market segments (=new opportunities) by leveraging the existing infrastructure and SAP Business One know-how. 3) Partners can build a bigger install base which provides greater opportunity for future up-sells, and also is the foundation for setting up an efficient product support. 4) Because of the reduce scope and price of the Starter Package, partners can become more profitable on small deals. Some partners even confirmed that they may hire dedicated junior sales and implementation consultants to focus specifically on small customers. 5) Partners can to fill the gaps between bigger implementations with Starter Package implementations. 6) Fixed scope and fixed price will likely result in clearer and more tangible customer expectations, resulting in greater customer satisfaction and more repeat business for partners.

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Who can sell the Starter Package? While many of our existing partners rather focus on bigger deals and see themselves as Am I the right partner to sell the system integrators, the SAP Business One Starter Package will require volume selling Starter Package? partners. This may change the way it is sold, implemented, and supported SAP Business
One so far. For example: On average, the sales cycle should take no longer than four weeks, and include no more than one demo. This requires a highly standardized and repetitive sales approach by: o minimizing the face to face engagement during the sales cycle and utilizing web based demonstrations of the solution and customer self qualification o replacing the demonstration to customer needs with a web based demonstrations of fixed business scenarios to avoid discussions around customization On average, the implementation time is 3-10 days, depending on the scope of the project. This requires a highly standardized and repetitive implementation (see chapter Implementation Framework). Partners may charge customers with a certain percentage of the MSRP as annual maintenance fee. With the reduced license value, this model may not generate sufficient maintenance revenue. Therefore a different support model may be considered, such as: o Charge on a call by call case o Limited support to a number of support calls per year; every call on top is chargeable o Increase the percentage of the MSRP used to cover the support costs SAP is looking for a select number of partners who are focusing on smaller customers and willing to invest in the starter package approach by training their sales and consultant forces. With this highly standardized approach, junior sales or consultants are ideal for a Starter Package project.

When is it available for partners?

It can be promoted right away and can be ordered once the next pricing update has taken place: May 18, 2011.

Who are the competitors?

SAP is now moving into an area which is traditionally owned by shelf ware and mass-volume solutions like Quickbooks, Sage, etc. The goal of the starter package is to reduce the entry hurdle for small customers who need more than these shelf ware products can offer, but for whom the current SAP Business One offering (license +implementation) has been too expensive.

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Functionality, Partner add-ons, and Support

How does the Starter Package functionality differ from the standard SAP Business One edition?

We have limited the functional scope of the starter package to the most essential components, allowing the customer to benefit from an integrated business management solution implementable within a very short time frame. For more information, please check the functionality overview available at

http://www.sap.com/usa/sme/howtobuy/businessone

How does SAP define the scope of We capitalized on the positive experiences that we had in this segment from few countries the Starter Package? around the world to come up with the concept. We then interviewed with more than 20
partners worldwide to validate it. The final functional scope was developed, and adjusted, based on partner input.

What is the technical implementation of the Starter Package? How can a Starter Package customer upgrade to the standard edition?

From the technical side, the SAP Business One Starter Package is a new user type. But unlike the 2007 introduction of the Limited Users, the Starter Package user is technically implemented as of day 1 on, i.e. customers are restricted to the functionality provided by the Starter Package user.

What about partner solutions?

When growing over time, customers simply import new licenses and their SAP Business One will be up and running with the extended functionality. No software updates required! While Starter Package allows customers to run any SSP add-ons, partners should clearly focus on add-ons a) covering legal requirements b) reducing the implementation effort c) enhancing the usage of SAP Business One, such as reporting or usability enhancements. Add-ons that significantly extend the functional scope of the Starter Package should be avoided as they diminish the value of the starter package. The starter package was developed to be easy, lean, affordable, and fast to implement and the more add-ons included, the longer it will take to implement. It makes no sense to implement the Starter Package in 5 days, and then another 15 days to implement partner add-ons.

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My customer only wants to access the partner solution. Can he buy one starter package user and 20 partner users?

No, this is not possible. If a customer wants to access the SSP solution (or any other third party add-on), he needs to hold a valid SAP Business One user license. Because we only allow Starter Package user, and we dont sell Indirect Access User with the Starter Package, all users must have a Starter Package license. At the same time the Starter Package is limited to maximum 5 users. That means, a partner cannot use the Starter Package as a cheap entry solution to for addon functionality.

How does SAP handle the The support scope and maintenance policy will be exactly the same as for standard SAP maintenance and ongoing support Business One,. of Starter Package customers? Partners provide first and second level support, SAP provides the third level
support and partners forward the standard 10% of the MSRP as annual maintenance fee to SAP Partners need to ensure that customers comply with the minimum support requirements, in particular remote support access1

See http://www.service.sap.com/~sapidb/011000358700001331522008E/MaintenancePolicyPresent.pdf, , slide 11

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The Implementation Framework

What is the implementation framework?

The implementation framework includes: Starter package scope document (solution map) Predefined implementation work packages Starter package implementation plan Preconfigured content Following the implementation framework procedure, partners should be able to implement SAP Business One starter package in a very short time frame.

Does SAP guarantee a 3-10 days implementation timeframe?

Based on the feedback from partners, and following a standard implementation with basic data import from legacy system and a basic configuration, the 3-10 days are realistic. However, given the variance of any project, we cannot guarantee that any implementation can be done in this timeframe.

Can I as a partner extend the Implementation Framework?

Sure. Many of our partners have already developed an implementation approach for preconfigured content. It is for this purpose that we allow partners to extend the implementation framework. In some cases this is even highly recommended for covering country specific processes

Customer training requires a lot of As part of the starter package, end user documentation is included to minimize end user time and resources. What does training. The end-user documentation includes product help files, standardized workSAP offer? instructions and flash-based demos for key business process & implementation tasks.

In which countries is the implementation framework available?

For the May 18 launch we plan to provide the implementation framework for 11 county versions. For details please check the landing page on the Channel Partner Portal. Over time, we will add more and more country versions.

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Can I as a partner sell the Starter Package if the implementation framework is not available for my country?

Yes; You may want to check with your SAP local product person (LPE) upfront to check if there is a specific reason why no implementation framework is available.

Do I as a partner have to use the Implementation Framework?

No, this is not necessary. It is an offer that is available for usage from SAP at the discretion of the partner.

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