Next month, I will be relocating to Singapore after two years in India. These two years have been an amazing learning experience for me, both from a personal and professional point of view. A very intense experience too! Of the few Hindi words I learned during my stint in India, there is one that I am particularly fond of: “jugaad,” which can be translated as “making things work.” This is one way to summarize what India is all about — and why India works as an economy, in spite of the gods and despite all of the challenges that India currently faces as a society.
This concept has taken on a lot more importance on the global scene in recent years from an innovation management point of view. A former Forrester colleague has recently coauthored a book about the concept and how it could “reignite American ingenuity.” The economic and ecological crises that we have been through over the past few years call for new ways of approaching economic development and growth. And the “jugaad” concept could bring interesting solutions to our modern societies.
At SAP SAPPHIRE (SAP’s biggest user conference, May 14–16), SAP announced that it has deployed more than 1,400 instances of Rapid Deployment Solutions (RDS) at more than 1,000 unique customers. These solutions help customers deploy SAP modules in as short as a few weeks at a reduced price point by productizing typical configurations. SAP boasts cost savings typically in the 20% to 40% range versus similar deployments that do not utilize RDS.
SAP has more than 70 of these solutions currently available. Additional solutions are available through partners like Accenture and TCS. RDS solutions are available in a wide range of areas like CRM, Sourcing, Financials, and even SAP HANA.
SAP positions these solutions as “lego-like,” meaning that customers can build one on top of the other and can customize and extend as much or as little as they want.
Our take? These RDS solutions are a great way for companies to quickly realize value out of SAP, an issue which has long plagued the SAP community. Even clients who need to go far beyond what an RDS offers and create a much more customized deployment might be able to jump-start their project with an RDS. However, these offerings are not available in all horizontal or vertical areas. SAP customers who want a complete solution heavily tailored for their industry-specific needs will likely need to turn to SAP’s ecosystem of pre-built solutions, rather than lighter-weight RDS offerings.
Several recent Forrester reports, including “Mobile Is The New Face Of Engagement,” have shown how new business success imperatives are pushing clients to change the way they leverage IT solutions. In my report “The Move To An Asset-Based Services Play,” I describe how IT service providers will have to adapt to these new rules of engagement if they want to stay relevant to their clients in the long run. In particular, the increased focus on business innovation will push service providers to invest more in the development of software assets — or solution accelerators (SAs) — that provide strong business value to multiple clients.
The move to asset-based services will force service providers to invest in new operating models that differ significantly from their traditional models and are closer to the ones leveraged by software providers. In my next report, I will cover some of the associated best practices in terms of the organization, people, processes, and tools that IT services firms need to implement to make this shift happen internally. Service providers will need, among others, to recruit new skills such as product and portfolio managers, incentivize the creation of software assets, fund and incubate the creation of solution accelerators, and overhaul their partnership management processes.