SAP Services Will Make Or Break SAP's Platform Strategy

Over the past few months, SAP Services has embarked on a major software-enabled services transformation of its offerings and operating models. The strategic intent is to increasingly rely on IP-based solutions (including SAP’s Rapid Deployment Solutions portfolio and assemble-to-order methodology) to deliver outcomes faster, with lower risks for clients and, eventually, support value-based pricing. Next on SAP Services’ transformation road map? I believe that the organization needs to quickly change the perception of the rest of the SAP ecosystem, which still views SAP Services as a competitor.

SAP Services’ business model used to merely rely on staffing “rock star” consultants on client projects in order to facilitate the implementation of complex solutions. The new strategy aims at positioning the 15,000 service professionals on SAP’s newer solutions (e.g., cloud, mobile, HANA . . .) in order to ensure that early projects generate the promised outcomes. In order to achieve this goal, the delivery teams need to be much more focused on collaborating internally (with the R&D team, for instance) as well as externally (with clients). SAP Services will also need to increasingly work collaboratively with its partners in order to ensure the success of the overall SAP-as-a-Platform strategy.

SAP Services needs to:

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The Mobile Mind Shift Has Arrived In The European Enterprise

European IT departments actively deploy mobile capabilities in their organization, edging ahead of their North American counterparts on the journey to provide managed corporate services to their employees, according to Forrester’s Forrsights Mobility Survey, Q2 2013. Our data also showed us that:

  • European IT leaders prefer to control the distribution of corporate applications. Forty-three percent of European respondents report that they have implemented or plan to implement a corporate mobile application store within the next 12 months compared to only 26% of their North American counterparts (see Figure 1). These findings point to a key difference in the European approach: less self-sourcing by the employee, no laissez faire attitude to application sourcing, but active guidance on corporate devices and applications. European IT leaders we spoke to confirm these findings.
  • European mobile deployments look unstructured and often lack stakeholder alignment. While there is much activity around building out mobile application delivery and investing in the right infrastructure to support mobile engagement, there is no visible pattern or strategy behind many deployments. Many European enterprises fail to apply the classic strategy of starting with a mobile strategy, rolling out mobile device support, and ensuring mobile productivity.
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Siemens Enterprise Communications Becomes Unify: A Different Story

On October 15, I was invited to the launch of Unify, the new name for Siemens Enterprise Communications. Giving up a heritage stretching back to the age of the telegraph is a courageous move at best. Like some of its peers with a strong history in communications, Siemens Enterprise Communications has been through a tough period recently. Like Nokia Handsets and BlackBerry, the company has had to reposition its business to regain lost ground. But this is where the comparison stops, for this move is a bold departure and is being put into practice differently:

  • Unify is not an evolution; it's a new beginning. As the CEO Hamid Akhavan announced the new Unify brand, there was a mixture of emotions; it was both a sad departure from the powerful parent and liberation in the face of a new mission — harmonizing the enterprise. Mr. Akhavan presented the brand as young, hip, and customer-focused. A fresh, apple-green Unify logo completes the picture; it is differentiated, concise, and a good base upon which to build a lively brand in the years to come.
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Portugal Telecom's New Landmark Data Center Sends The Message: “Transition Completed”

I was recently invited to join the celebrations for the opening of Portugal Telecom's (PT) new tier 3 data center in Covilha, Portugal. On this occasion, CEO Zeinal Bava reported the completion of major milestones in a five-year transformation program, including: 1) the transition to a next-generation network (NGN); 2) the transformation of business models to become more responsive to changing consumer needs; and 3) a transformation of the customer experience to become a customer-centric organization. Mr. Bava also announced the launch of a public cloud that's freely available to Portuguese citizens and elaborated on PT's hunger for cloud business in a competitive marketplace. As a symbolic act, 38 companies — including Accenture, the Football Association of Lisbon, Banco BIC, and Wipro Portugal — signed a cloud deal with PT on-stage. PT staged this event, located at its new state-of-the-art facility, to demonstrate its capabilities for innovation in terms of resilience, architectural design, energy efficiency, and capacity. Here is what it means for PT:

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