A brief reflection from the SAP Influencer Summit on SAP’s On-Demand strategy
At the SAP Influencer Summit in Boston Dec 8/9, SAP put a lot of emphasis on its new roadmap into cloud computing and how serious the company is taking the topic for its future success. Well, to be true SAP actually avoided the term ‘cloud’ almost entirely and talked about ‘on-demand’ solutions instead. Maybe the company stayed away from the term ‘cloud’ because there is still a lot of confusion in the market (or inside SAP?) what cloud computing actually is, or to simply differentiate from the masses that currently go ‘crazy in the cloud’. Anyways, to offer pay-by-use software applications via self-service over the web indeed is pure cloud computing and SAP has declared it to be a future focus area for the company when Jim Snabe said “… significant [SAP] investment into on-demand will disrupt the market and SAP will regain leadership in this space”.
Since 2004, I have been arguing in my research that the tech market would enter a new cycle of innovation and growth starting in 2008. This thesis was based on my review of the US tech market since the 1950s, which showed a pattern of eight-to-ten year cycles of strong growth in tech purchases, followed by eight years of modest growth. This pattern had repeated three times, first with the introduction of mainframe computers in the late 1950s and 1960s, then with the arrival of personal computers in the 1970s and 1980s, and then with ERP software, client-server systems, and the Internet in the period from 1992 to 2000. Based on this pattern, I predicted that the tech market (at least in the US) would grow at about the same rate as the overall economy from 2004 to 2007 as business "digested" that third wave of technology, then decline in 2007 or 2008 due to a recession in that period ("IT Spending Outlook: 2004 To 2008 And Beyond -- Waiting For The Next Big Thing": http://www.forrester.com/Research/Document/0,7211,35063,00.html; "Expect A Tech Slowdown Before The Next Boom -- Forrester's Long-Term IT Spending Forecast For The US, 2005-2010": http://www.forrester.com/Research/Document/0,7211,37816,00.html). While not all aspects of these predictions have come true, overall I believe they were a generally accurate forecast of what happened in the tech market from 2004 to 2008.
Staples Technology Solutions - a separately managed part of the growing company - will outsource your desktops or address print management needs. So this means IT outsourcing as well providing Managed Print Services for printers, imaging equipment, copiers, and fax machines. They are strong in volume pricing and support coverage and will do well in the mid part of these markets. I would have liked to have seen more connection to their print and copy retail service centers. For example allowing jobs to be routed from a business to a retail center for special preparation - the type of things corporate print centers use to do.
Do you truly understand your workforce and what they need from technology? Hint, it's a loaded question. You might think so, but you'd probably be wrong. They're not like you. Not at all.
We weren't sure, either, which is why we surveyed 2,001 US information workers -- people that use computers in their jobs to find out what technology they use and what they need to be successful in their jobs.
We discovered something that consumer market researchers have known for generations: Not everybody needs or wants the same stuff. So we drew on our decade of experience with quantitative analysis and created a segmentation that highlights the differences between employees based on their need for location flexibility (mobility) and their application use:
Location flexibility, a.k.a., mobility -- drives differences in the need for smartphones, wireless networks, collaboration tools, and telecommuting support.
Application use drives differences in social computing, consumerization of IT, and tolerance for virtual desktops.
When you regularly have conversations with your colleagues about social media activities, the platforms, and the impact on consumers you might find this 'Conversation Prism' graphic useful. Brian Solis and Jesse Thomas of JESS3 build this helpful chart that shows the activities and the networks that make the Social Web.
At yesterday's Influencer Summit, Dr. Uwe Hummel (EVP and Head of Active Global Support) explained to industry analysts why SAP believes so strongly in its Enterprise Support product. In fact, it is so convinced in proactive support and the positive impact on customers' SAP application management and operation costs that it decided to protect them from making the mistake of declining to buy it - by making it mandatory.
We all know how customers reacted to that idea, and how SAP has reconsidered its approach since the initial announcements. Yesterday's session focused on SAP's uniquely innovative program to track the actual benefits obtained by customers using Enterprise Support. SUGEN, the association of independent SAP user groups, agreed 11 application-management-related KPI that it would track at 56 member sites. The first results are now in, and though SAP isn't quite ready to publish them, from what we saw under NDA, there has been a clear and consistent improvement in measures such as 'failed system changes'.
However, even if these results enable SAP to make a convincing argument that enterprise support is beneficial for most customers, it hasn't yet answered the important questions that we've raised on behalf of sourcing and vendor managers:
ACCOR, the global hotel chain, just launched an iPhone application.
This is just one of the many examples of travel brands leveraging the mobile momentum. Airline companies have always been at the vanguard of integrating mobile into their strategies, but it looks like many other travel brands from hotel chains, airports, rail companies, car rental companies, and travel-related brands (from Lonely Planet to luxury brands) are now tapping into existing mobile opportunities and building mobile products that meet burgeoning customer demand.
Travel is indeed inherently mobile. Now that the promise of location-enhanced services is beginning to be fulfilled on mobile phones, travelers are starting to use their devices as personal travel assistants. More than 10% of European Internet travelers use their mobile phones to look up flight or train schedules. Frequent business travelers are the ideal target group, as they are more likely to be regular users of the mobile Internet and are more likely to spend while traveling. More than 30% of them are interested in booking train tickets or checking in for a flight via their mobile phones.
Another interesting announcement was made this morning at the LeWeb conference in Paris, where Orange officially announced the launch of its Application Shop (available in beta in the UK and France for several months). This shop will first be available to 1 million customers in these two countries before being roll-out to millions more customers throughout 2010. For now it gives acess to 5,000 applications.
Replicating Apple's success will not be an easy task and operators should not follow this route. They should on the contrary leverage their key assets to offer:
This past summer, Forrester conducted a series of in-depth interviews of architects to further our understanding of their roles: how they saw the role in the context of their organizations, how they are evaluated by senior management, their key success imperatives and their information needs. We undertook this not just as research to publish, but also to inform how we support individuals in the EA role.