We often hear about how important enterprise mobility is to businesses. For years ICT events companies have been holding events about "enterprise mobility" and "the future of wireless" etc - and they have filled halls with attendees and sponsors/exhibitors.
But really - is mobility really that important to businesses? Weren't the people with "mobile" in their title the first to go when the global financial crisis hit? And point me to more than a handful of businesses whose business relies on their mobility capabilities.
Recent findings from McKinsey’s annual global survey into IT strategy and spending, conducted in October this year, made me stop and think. These concerned IT executives’ own view of the strategic sourcing effectiveness of their IT organizations. Most respondents — two thirds of the sample — rated their strategic sourcing approach as effective. But this endorsement looks less impressive next to the 2008 findings.
We recently finished some research into what clients need from our research – role “deep dives.” Those of you who are clients of the sourcing and vendor management (SVM) role might remember having done one for us a while back. When SVM piloted that research last year, we used the information to refine our research strategy and create an SVM Roadmap. We then shared that roadmap with our clients in a teleconference to get more feedback into what you needed (and didn’t) from us.
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:
SAP’s dominant negotiating position is often a challenge for sourcing and vendor management professionals looking to cut costs and avoid pitfalls in contracting. A tough year for SAP with a 40% drop in license revenue in the first half of 2009 compared to last year presents new challenges in negotiating. Has this drop made SAP more flexible in sales negotiations, or more determined to fight for every dollar it can get, hold firmly to standard discount levels and force through its maintenance price hike?
Forrester Research, led by Principal Analyst, Duncan Jones, Senior Analyst, Liz Herbert, and Research Associate, Elizabeth Rose, is preparing to tackle these problems and publish a report on pricing trends and best practices for negotiating with SAP and we need you.
Our report will answer the following key questions: