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`From:
`To:
`Cc:
`Bee:
`Subject:
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`Page 1 of2
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`Kazuhiko Nakashima.
`Sent:S/4/1998 12:16 AM .
`Deborah Adams; David Glessner; Manfred Hirn; Wilfried Merkel; Kazuhiko Nakashima; Thomas Nitschke.
`Hiroshi Hino; Takao Kashiyama.
`
`FW: Review of 4.5 Pricing Functionality.
`
`- -------------- Note------------
`Hi Wilfried and Manfred,
`This is forwarded via Debbie. Can you kindly follow up to clarify
`some BFS' concerns and advise me for next actions can be taken at
`your side, namely next meeting in Oct.
`Best regards, Katz.
`
`----------- End of note------------
`
`As discussed.
`
`> ---Original Message-(cid:173)
`> From: Bangs, Rick
`>Sent: Friday, July 31, 1998 5:41 PM
`> To: Adams, Debbie
`> Subject: Review of 4.5 Pricing Functionality
`>
`> Kash's letter on our review of the 4.5 pricing functionality is attached.
`>
`>
`> Kash has asked me to send directly to Herr Hirn, but would like you to
`>forward to Kaz (and Kaz to forward to Dr. Zencke).
`>
`> Do you have Herr Hirn's e-mail address?
`>
`>
`> <<Dr. Letter2 (Kash).doc>>
`>
`> <<For SAP Waldorf 7-31-98.doc>>
`>
`>
`>
`> Rick Bangs
`> Bridgestone/Firestone 82000
`> (615) 837-6049
`> bangsrick@bfusa.com
`>
`
`VERSATA EXHffiiT 2085
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`From BangsRick@bfusa.com Tue Aug 4 02:16:21 1998
`Return-Path: BangsRick@bfusa.com
`
`VERSATA EXHIBIT
`PX 2137
`
`C A. No 2:07-CV-001 53-CE
`
`CONFIDENTIAL- ATIORNEYS' EYES ONLY
`
`VSAP _01866487
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`

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`Page 2 of2
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`From: "Bangs, Rick" <BangsRick@bfusa.com>
`To: "Debbie Adams (E-mail)" <deborah.adams@sap-ag.de>
`Subject: FW: Review of 4.5 Pricing Functionality
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`VSAP _01866488
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`

`
`Bridgestone/Firestone Business 2000
`
`Memo
`
`To:
`
`Dr. Manfred Him I SAP, Walldorf
`
`From: KashiwaMaki (e-mail to: MakiKash@bfusacom)
`
`Date: TIME
`
`Re:
`
`Enhanced Pricing Functionality
`
`Thank you for your "Status SD-Development for BFS" document detailing the enhanced
`pricing functionality in SAP R/3 version 4.5A and 4.5B (formerly named 4.0C and 4.0D).
`I would like to share the status of our implementation planning, questions on the pricing
`functionality in 4. 5 versions, and a proposal for next steps.
`
`First, I would like to acknowledge our appreciation for your efforts to address our
`business requirements in your new R/3 versions in a timely manner. We are encouraged
`to see your company's commitment to continuous enhancement of functionality.
`
`After careful assessment of the information in your memo, however, we have concluded
`that we will have to bolt on a third party's pricing software to the R/3 platform for our
`immediate implementation of the SD module that will start early next year. The reason
`for this is twofold: first, as stated in your memo, some of our business requirements will
`not be met in either 4.5 version, which would negatively impact our business process.
`Second, although 4.5 may fit some of our requirements, the time required to upgrade the
`current 3.1H platform would not enable us to meet the original implementation timeline.
`We are assuming that the 4.5 pricing functionality cannot be "ported down" to 3.1H, but
`would be interested in your direction on this issue.
`
`We are currently planning to test the technical feasibility of the interfaces between the
`3.1H SD module and Trilogy's SC Pricer Software. At the same time, our long-term goal
`continues to be achieving the same or higher level of functionality within SAP. It is our
`hope that we can utilize the more robust functionality of a future SAP version at the time
`of the next version upgrade after the completion of the current implementation.
`
`In order to pursue this goal, we would like to obtain a better understanding of your
`suggested work-arounds for some of our pricing requirements that are not addressed in
`the current R/3 functionality enhancements. The specific questions are listed in item (3)
`in the attached summary of our assessment of 4.5 AlB pricing functionality. We also
`would like to understand SAP's direction around the remaining requirements to which we
`do not have the solution at this point. The largest of those gaps between SAP's delivered
`functionality and our requirements are listed as item# (4) of the same attachment.
`
`CONFIDENTIAL- ATIORNEYS' EYES ONLY
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`VSAP _01866489
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`
`I would like to propose a meeting in Walldorf in early October to attain the above
`objectives and define the forward path. If you could demonstrate for us the six scripts
`that were provided in early 1997 from setup through application, it would help us
`properly understand the fit between the newly enhanced SAP pricing functionality and
`our requirements.
`
`Please advise if my suggestion is agreeable and feel free to let me know if you have
`concerns, questions, or other suggestions.
`
`Thank you very much again for your continuous support. Looking forward to hearing
`from you.
`
`Sincerely,
`
`Kashiwa Maki
`Business 2000
`
`Cc:
`
`Dr. Peter Zencke I SAP, Walldorf
`Kazuhiko Nakashima I SAP, Walldorf
`Debbie Adams I SAP America
`Rick Bangs
`Dana Draper
`
`CONFIDENTIAL- ATTORNEYS' EYES ONLY
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`VSAP _01866490
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`

`
`Summary Assessment of SAP's Enhanced Pricing Functionality
`
`In reviewing the SAP Walldorf memo received in May 1998, there seems to be two (2) SAP versions
`discussed.
`
`• Version 4.0C, now named 4.5A is scheduled for release in September 1998. This version contains several
`pieces of additional pricing functionality.
`
`• Version 4.0D, now named 4.5B is scheduled for release in the second quarter 1999. This version contains
`one additional piece of pricing functionality.
`
`(1) There are several enhancements included in the 4.5A version that could reduce some of the Gaps
`identified in our assessment of the 3.0F version. The version seems to have improved considerably in the
`area of access sequences, both maintenance and application. The shear number of these that would have
`to be maintained in version 3.0F was a major concem.
`
`(2) During our evaluation of the 3.0F version, we identified some 769 different access sequences that would
`have to be maintained. The 4.5A enhancements include the addition of Free Key Fields plus the ability to
`use these fields in subsequent access sequences. This-does appear to have reduced this count; however,
`it does appear that the use of these data fields would entail some development through the addition of
`ABAP code in the user exit. An example of this process would be MCRs and modifiers. Given the number
`of MCRs and associated modifiers that BFS applies, a demonstration of this process would be very
`helpful.
`
`(3) The suggestion to use Sales Deal Groups for BFS's required Price-Books and Discounts does give us a
`partial solution for our use of Ranges, but leaves questions in:
`
`•
`
`Is the control of the maintenance at the Sales Deal level, or at the Condition Type level? An example to
`illustrate this question would be in Price Books. BFS has 8,700 Price Books representing 539,000 input
`records. Preferably we would maintain at the level of Sales Deal (8, 700), and not at the Condition level
`(539,000).
`
`• Applying characteristics to the range and its individual components. The suggestion by SAP is to develop,
`through a user exit, the application of certain characteristics. BFS currently has 8,700 price books
`(representing 539,000 input records) and 33,330 discounts (representing 300,000 input records), and with
`as many as 15 characteristics to each. Can the user exit support that much volume?
`
`• How to control the specific "Numbering" to be applied. In Price Books and Discounts, a range of numbers
`must be reserved for each Sales Deal Group. How can that be controlled?
`
`(4) There does still appear to be Gaps between delivered functionality of 4.5A and the requirements of BFS. I
`classify these Gaps into two distinct types, functional and efficiency. Below I will list the largest of these
`Gaps by type:
`
`Functional
`
`• The ability to identify and apply multiple values for individual data fields. (From Supply point 8B or 9U)
`This appears to require dual entry in SAP 4.5A.
`
`• The ability to use specific price-book numbe~ to direct proper application of prices.
`
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`• Price Protection
`
`• Qualify and Apply type of discounting.
`
`•
`
`Invalid Master data, which is copied into an order, but prior to billing the data changes.
`
`• Fill In recognition and application of proper pricing.
`
`Efficiency
`
`•
`
`Increased number of Price Books and Discounts due to the required separation of percentages off, dollar
`off and net prices. This functionality will be enhanced in the 4.58 version according to the memo.
`
`• Maintenance at the condition level by customer/material, or group of customers/materials would cause an
`increase in the numbers of input records. An example would be Price Books: In SAP the maintenance
`could balloon to 539,000 (#of Input Records) divided into 3 types (percentage, net,+/- dollar) x 31
`(average number of customer groups per sales deal).
`
`• The flexibility to mix different levels of material and customer groups within a single access.
`
`• The requirement for an efficient Pricing Simulation does not appear to be satisfied.
`
`• Tools for working with lists, or groups of sales deals.
`
`To summarize, I see the enhancements of 4.5A as being closer to the requirements of BFS. There does,
`however, appear to be Gaps between delivered functionality and processes needed to support BFS's pricing
`requirements. There may be some relief of the functional Gaps through the development of ABAP code inside
`the pricing user exits. I am concerned about the efficiency of pricing maintenance within the 4.5A application,
`and I do not have access to a 4.5A version to assess this area of concern.
`
`I would like to suggest a visit to Walldorf to assess the questions and concerns I have stated earlier. One
`scenario could be SAP demonstrating the six scripts that were provided in early 1997. I would like to view the
`execution of these scripts from set up through application. This would aid in properly assessing the fit of SAP
`and BFS pricing for both standard 4.5 and the possibility of SAP-BFS co-developement.
`
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