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The Reinvention of SAP 2 Can SAP Deliver IT Simplicity? 3 SAP’S Top 10 Priorities to Real-Time Analytics, BI Ahead Become Undisputed No

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The Reinvention of SAP 2 Can SAP Deliver IT Simplicity? 3 SAP’S Top 10 Priorities to Real-Time Analytics, BI Ahead Become Undisputed No May 31, 2010 SAS Analytics.InformationWeek.com A n a l y t i c s A lert C o n t e n t s The Reinvention of SAP 2 Can SAP Deliver IT Simplicity? 3 SAP’s Top 10 Priorities to Real-Time Analytics, BI Ahead Become Undisputed No. 1 9 SAP SaaS Strategy Needs to Deliver In a rollout of new products and a renewed strategy 10 How SAP Is Leading the Mobile centered on in-memory and column-oriented database Enterprise Revolution technology, SAP promises a commitment to “real” 13 SAP Must Prove Sybase Synergies real-time analysis without risk. With a new manage- 16 SAP Bets on In-Memory Tech 19 Hasso Plattner’s Six Steps to ment structure, co-CEOs Jim Hagemann Snabe and Real-Time Database Nirvana Bill McDermott, along with Hasso Plattner, founder 20 Oracle Hammered by SAP for and chairman, laid out SAP’s new orientation, vision Stifling Customer Choice and plans for the future. 23 SAP Customers Get a User-Group Champion 25 Quick Takes on SAP’s Sapphire Announcements 27 How Will Larry Ellison Counter SAP’s Mobile Offensive? 29 iPhone Sets Response Time for Enterprise Apps: Plattner 30 SAP Smart to Snare Sybase’s Mobile Mojo R einvention of SAP Analytics.InformationWeek.com Analytics Alert May 24, 2010 Can SAP Deliver IT Simplicity? By Doug Henschen There’s no doubt that SAP customers are excited about the in-memory and column-store database technology announced at the recent Sapphire event. But are they hearing only what they want to hear from SAP? And if that’s the case, when can the company deliver what they are really after? SAP put the emphasis of its SAP Business Analytic Engine announcement on delivering what it called “real, real-time” analysis. But among the SAP customers InformationWeek canvassed, the bottom-line takeaway on the “New DB” described by Chairman Hasso Plattner was that it could simplify IT environments by eliminating business intelligence infrastructure. “Most of what we look at through BI is just data that’s in SAP R3 put in a different place so that we can report on it quickly and efficiently,” said Mike O’Dell, CIO at Pacific Coast Building Products. “If suddenly I can do that same reporting on a live system because it’s in-memory and it’s fast, then I don’t need the infrastructure for BI.” An executive at Kraft Foods had much the same take. “The real value is in removing complexity,” said Tom Zavos, senior director of business intelligence at Kraft. “I won’t have to do ETL any- more, and I won’t need a separate business warehouse database or additional appliances like the [SAP] BW Accelerator.” In fact, Zavos and others told InformationWeek that the desire for simplicity trumps the demand for real-time analysis. “We do have situations where people want real-time insight, but that’s more often the excep- tion,” Zavos said. Customer-fac- ing users like salespeople might Bill McDermott’s appreciate real time, he added. time to co-lead. But he questioned the need for 2 May 31, 2010 © 2010 InformationWeek, Reproduction Prohibited Reinvention of SAP Analytics.InformationWeek.com Analytics Alert marketing, procurement or manufacturing personnel to go beyond daily updates. In the six-step roadmap outlined in his keynote address, SAP’s Plattner said the New DB/SAP Business Analytic Engine would first serve as a sort of turbo charger alongside existing application and data warehouse infrastructure. This “no risk” approach offers the advantage of not ripping and replacing existing systems, he said. Workloads will be moved over to the new environment gradually and aging legacy systems decommissioned over time. But if simplicity is what customers are really after, how quickly can companies hope to get to the latter stages of SAP’s roadmap? It’s too early to say, co-CEO Jim Hagemann Snabe told Information- Week. He did allow, “it will start in analytics, and then you’ll see us building more advanced opti- mization applications like planning.” The response at least suggests that customers won’t have to wait years to consolidate BI infrastruc- ture. The real question on most customers’ minds is “How much will it cost?” In an interview with InformationWeek, co-CEO Bill McDermott said questions about cost could only be answered when the product comes to market, but he noted that “by definition, it seems that removing layers takes cost out... There will be different situations for different customers, but the theme is ‘let’s get rid of redundant IT and free up cash flow for innovation.’” The bottom line is that SAP is selling consolidation as well as real-time performance. And on both fronts, there are many questions about cost, performance, storage capacity, data integration flexi- bility and several other details that are nowhere near being answered. Nonetheless, SAP cus- tomers like what they’re hearing. May 17, 2010 SAP’s Top 10 Priorities to Become Undisputed No. 1 By Bob Evans Crisis and opportunity often go hand in hand, and several months ago SAP appeared to be hell- bent on heading for the crisis ward: one CEO ousted, two new co-CEOs appointed, and a leg- 3 May 31, 2010 © 2010 InformationWeek, Reproduction Prohibited Reinvention of SAP Analytics.InformationWeek.com Analytics Alert endary chairman speaking out with brutal candor about lousy employee morale, outdated prod- uct development approaches and, worst of all, the loss of trust from customers. That bumbling and troubled organization of earlier this year is difficult to recognize as SAP kicks off its Sapphire global customer conference, reinvigorated by impressive quarterly earnings and a high-profile agreement to acquire Sybase. But the biggest change at SAP is one that’s simple to describe but often so difficult to achieve: assertive, confident and highly informed leadership. Co-CEOs Bill McDermott and Jim Snabe— and, of course, chairman Hasso Plattner—have done a magnificent job of clarifying SAP’s strate- gy, articulating its vision, reclaiming its customer-focused perspective and calming the jittery nerves among employees wondering where their company was headed in an increasingly aggres- sive and high-stakes business. Here’s an example: In their Integrating SaaS and comments after SAP on-premises ERP means “a lead announced its quarterly earn- ings in April, Snabe and isn’t stuck as a lead. It McDermott simply and confi- becomes an order, a delivery, dently explained not just what had happened in the last three an invoice and a payment.” months but how SAP would —SAP co-CEO Jim Hagemann Snabe shape its destiny in the com- ing year. Snabe’s key points were the unified thread of on-premise, on-demand and on-device; the enormously important melding of business apps with business intelligence; mobile’s move to preeminence (and three weeks later, hello Sybase); and the role Business ByDesign would play in SAP’s future. The message was simple, clear and confident: Here’s what we have, here’s where we’re going and here’s how customers will benefit. Then McDermott, in equally simple and clear messages, pounded home the company’s resur- gence by describing the return of transformational deals accompanied by some “knockout” wins against Oracle (he didn’t say it was Oracle, but it was); emphasizing that double-digit growth 4 May 31, 2010 © 2010 InformationWeek, Reproduction Prohibited Reinvention of SAP Analytics.InformationWeek.com A nalytics Alert was broad and deep; and signaling the return of customer trust by noting that 90% of customers were purchasing SAP’s top-tier support package. That was enthusiastic, focused, clear, simple: Here’s the market, here’s what customers need, here’s where we fit in and here’s how we’ll drive even greater customer value. As someone who’s followed SAP’s strategies and activities very closely for 18 months—and who’s been sharply critical of SAP throughout that time—I have to say I’ve found this turnaround to be nothing short of remarkable. And in the belief that a healthy, aggressive and customer- focused SAP is much better for its CIO customers than a stumbling, apologetic and internally centered SAP, we present this list of 10 priorities that SAP should establish to become the world’s top enterprise software company. 1) Keep Rebuilding Customers’ Trust: Help Them Grow. McDermott has been pounding home the message that SAP is the only company that seamlessly connects the corner executive office to the shop floor, and that’s certainly an essential capability. But customers already expect that from SAP. Also needed are powerful connections to customers, prospects and markets: more emphasis on the world outside, rather than the world within. What better way to build cus- tomer trust than to help those customers increase their own revenue and actionable market intelligence? Another vital chore McDermott and Snabe have undertaken is to gain insights into the feedback from all of SAP’s 100,000 customers, not just the top 100. In his comments about the company’s problems earlier this year, Plattner said SAP had developed a habit of devoting rigorous attention to its top 100 customers’ attitudes and impressions, and then assuming those opinions held true for SAP’s other 99,000 customers. That deep disconnect made many of those customers outside the top 100 feel that SAP didn’t care about their opinions, didn’t listen when they were offered, or both. Conversely, McDermott and Snabe are making it clear that the interests, needs and priorities of customers—all customers—will drive much of the company’s decision-making going forward.
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