SAP Supports Customer-Centric Business Strategies for Utility Companies with mySAP™ CRM

WALLDORF, Germany - November 25, 2003 - SAP AG (NYSE: SAP) today announced utility-specific functionality with the latest version of mySAP™ Customer Relationship Management (mySAP CRM) to meet the unique demands of utility companies. mySAP CRM leverages the deep industry expertise offered through the SAP® for Utilities portfolio of solutions to align with the customer engagement lifecycle for efficient customer support. Energie AG in Austria is among the early adopters that are leveraging mySAP CRM to achieve greater results from marketing campaigns, improve management of sales and service efforts for residential customers and streamline end-to-end sales processes for commercial and industrial customers.

mySAP CRM supports cross-functional business processes to streamline customer service and optimize energy data with billing and revenue management systems for residential, commercial and industrial customers. Enhanced features of the solution include closed-loop sales processes for commercial and industrial customers, sales management for residential customers, campaign management and an account manager portal. The new interaction center capabilities in mySAP CRM offer expanded communications channels, including computer telephony integration, e-mail, text chat and Web communication, to support expanded marketing activities through various channels and to improve customer service and collaboration between service providers.

“Intense competition and market deregulation are forcing utilities to offer more customer-oriented services while keeping an eye on opportunities for generating revenue and reducing operating costs,” said Dr. Zarko Sumic, vice president, META Group Energy Information Strategies. “Leading vendors are targeting the industry’s critical issues such as commercial and industrial sales and are working closely with their clients to drive the industry’s innovations. Those who have significant geographic coverage and exposure to various energy markets are also well equipped to help utilities companies meet the challenges in regulated, deregulated or transitioning markets throughout the world.”

Energie AG Leverages mySAP CRM to Capture Market Opportunity
Energie AG, the leading energy and infrastructure company in Upper Austria, has been using mySAP CRM to improve customer service and support new billing procedures in line with unbundling guidelines and energy quantity balancing. mySAP CRM has helped the company to make a quantum leap in terms of new, customer-centric capabilities and streamlined back-office to front-office operations, enabling a 63 percent drop in primary operating costs. Energie AG expects to generate additional cost savings through enhanced sales, reduced marketing costs and new revenue streams based on rich customer data with mySAP CRM. Details on Energie AG’s ROI success with mySAP CRM can be found in a separate SAP announcement made today.

Tools for End-to-End Management of Commercial and Industrial Sales Processes
mySAP CRM empowers key account managers with new tools to execute commercial and industrial sales contracts and manage the entire sales process including customer acquisition, creating quotations, negotiating contracts, determining sales contribution margins, and service delivery across multiple channels. Once a contract is closed, customer and usage data is automatically fed into back-office systems for billing and accounting, providing sales teams with comprehensive, real-time information on customer profiles and detailed calculations of the complex pricing structures throughout various regions.

Supported by the portal capabilities from the SAP NetWeaver™ technology platform, mySAP CRM enables information sharing across departmental boundaries, disparate operating systems and multiple business processes. The portal allows sales and call center agents to access performance data such as sales opportunities, quotations, contracts, technical installation profiles, consumption (load profiles), revenue totals and account statistics from enterprise systems to provide customers and business partners with a single view of the most relevant information.

Complete Sales Management for Residential Customers
mySAP CRM supports the complete sales order process for residential customers, from inquiry to invoicing and analysis. With enhanced sales management capabilities, a retail utility company can respond quickly to a residential customers’ request for a supply contract by performing an initial analysis, for instance, of the client’s load shape type. This action triggers subsequent functions such as energy delivery and billing to track energy delivery status or whether an invoice has been sent. The customer service agent can then view sales data that has been automatically extracted and use it for reporting and analysis.

"SAP offers electric, gas and water companies what no other solution provider can provide: deep utility industry experience coupled with end-to-end solutions covering asset and work management, core business practices as well as customer interaction and service delivery, enabling efficient operations, improved customer satisfaction, and the ability to master the challenges of deregulation," said Klaus Heimann, senior vice president, Industry Solution Management Service Industries at SAP AG. “The new functionality in mySAP CRM for utilities is changing the dynamics of time-to-market and international distribution, helping utilities to increase productivity, become more customer-focused and maintain a competitive advantage.”

SAP is one of the leading solution providers for the utility sector with deep knowledge of the processes driving the industry. For more information on SAP for Utilities, please visit http://www.sap.com/solutions/industry/utilities/

For more information on mySAP CRM, visit http://www.sap.com/solutions/crm/

Note to the Editor -- Energie AG ROI Report
Details on the significant return on investment achieved at Energie AG can be found in a separate SAP announcement made today, available at http://www.sap.com/company/press/.

About SAP
SAP is the world’s leading provider of business software solutions. Through mySAP™ Business Suite, people in businesses around the globe are improving relationships with customers and partners, streamlining operations, and achieving significant efficiencies throughout their supply chains. The unique core processes of various industries, from Aerospace to Utilities, are supported effectively by SAP’s 23 industry solution portfolios. Today, more than 20,500 customers in over 120 countries run more than 67,500 installations of SAP® software. With subsidiaries in over 50 countries, the company is listed on several exchanges including the Frankfurt stock exchange and NYSE under the symbol “SAP.” (Additional information at http://www.sap.com)

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