Not your father’s SAP

This week’s SapphireNow was eye opening for me. My interactions with SAP were primarily from implementing BW in its early days (1999 V1.2B) and being the CT for the EDS side of relationships with large outsourcing arrangements that used SAP R3.

It was clear just walking around the SAP area that things have changed significantly. There were no SAP GUI screens visible, everything had a clean modern look. The UI customization demos were both easier to perform and actually possible for the end user with little customization. Granted they were not doing anything too complex.

Integration options seemed to be more intuitive and actually possible for a range of other systems, supporting bi-directional information flow.

Even the executive dashboard (sorry for the reflection in the picture but I took it myself) seemed to be something an executive could actually use with relatively minor training. I’ve always been fascinated by executive dashboards! The person I talked with said it is even relatively easy to extend the display using HTML 5 techniques.

SAP executive dashboard

I am sure there is still quite a bit of work ahead for SAP to get all the functionality (especially industry) over and running at maximum efficiency to S4 HANA, but what was shown was impressive. Likely the first thing any organization contemplating the move needs to do is triage their customizations and extensions. The underlying data structures for S4 HANA are much less redundant, since the in-memory model removes the need for the redundancy to hit performance. The functionality also seems more versatile, so hopefully many of the customizations that organizations ‘just had to have’ can be eliminated.

I’ve always said the first rule of buying 3rd party packages is: “don’t do anything that prevents you from taking the next release”. With the new approach by SAP those running S4 HANA on the cloud will be getting the next release on a continuous basis. Those with an on premise approach will be getting it every nine months (or so).  So the option of putting of releases is becoming less viable.

I’ll get a post on Diginomica next week with more of an enterprise architect’s perspective.

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I survived my first day at SAP #SapphireNow

The one area that both surprised and interested me most on the first day had little to do with the analytics or IoT space (although I did have some interesting discussions in those areas too). It was the SAP approach to their on-line store.

They have had many on-line stores in the past but now they are taking a different more ‘digital’ approach that is focused on selling direct to the consumer. This will change the relationship with the user and the enterprise based on consumption. This could disrupt their traditional buyer, the SAP sales force as well as their partners that perform system integration and consulting. It will be interesting to see if this level of change can take place without too much disruption.

By selling tools like Lumira with a free version, then a low friction purchase option with a credit card a business could easily see this tool enter into its portfolio of resources without their knowledge. They have implemented the purchase process so that if a feature of a premium version is needed you are dropped into the store. Anyone who has done on-line gaming recently has likely run into this behavior. This kind of stealth selling is inevitable and will accelerate the kind of shadow IT has been discussed for years.

I asked the people at the booth about what happens when someone buys it on their own version and the company purchases a master agreement. The answers varied a bit but the individual has a choice to roll into the agreement or continue to pay on their own. Look to the terms and conditions (that no one reads typically) for the details.

There is also the concern about who will support anything that gets created once the business becomes addicted. Everyone likely remembers the years of Excel Hell. Hopefully that will not happen but I am still checking into how change management elements can be put in place for end user developed elements.

My greatest concerns is that the traditional command and control IT organization will be very frustrated by this, while the digital purists will be confused by the resistance – it may be just outside their contextual understanding. SAP stated they will be opening these capabilities up for 3rd parties to sell their capabilities and that will have its own problems. Service providers usually sell apps as a mechanism to facilitate up-sell into consulting and integration. SAP is trying to ensure what gets into the store is valuable on its own. Some of the service providers will likely have a hard time understanding these implications as well.

It was stated (many times) in the first day that business models are changing and SAP seems to be doing its part to be disruptive, even if most of its customers haven’t internalized the implications.