3. 1. Symptoms and Problems IT Consulting - SAP-ASAP action!!! Symptoms Keywords Traditional ERPis overly complex and difficult to install ex) Dell, Kmart Complexity, Rigid Kmart $130M spending for attempting to implement, Require high investment High failure rate in ERP implementations (over budget, delayed, hard to exit) Failure rate > 50% according to HBS survey Slow to change Customers should modified more frequently but no-longer wait for upgrade To heavy for small businesses Small, Mid-size companies want to adopt the system without high investments
4. 1. Symptoms and Problems IT Consulting - SAP-ASAP action!!! Symptoms Keywords Challenged by transforming open source integrator Push to open, Flexible Major IT players had jumped onto the SOA and web service platform Inadequate for rapid & complex business Inadequate to help companies become e-business EAI took up half of the time of IT departments. Therefore SAP decide to catch up with mySAP Decrease in benefit *EAI : Enterprise Application Integration Began to suffer from a lack of revenue gain and decrease in net income
16. impact on reduction in sales and license revenueDecrease in benefit
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18. Threat from competitors ( Indian providers, Oracle, Salesforce.com)
19. SAP would be hard to attract independent developers even if it had open platform
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21. SAP Strategic Positioning & Business Design Expansion of functional Coverage Develop new systems over new Business areas Deepening Industry Knowledge Enter to new industry segment Penetration of Mid-Market Enter to new customer group Development of New Flagship Offering Develop and Offer new products on technology basis. Configuration of Resources Resource constraints for SAP development IT Consulting - SAP-ASAP action!!!
22. Alternatives Reinforce the “NetWeaver” with Knowledge Management Promote and open the NetWeaver as the open platform for SAP integration development. As well as, to support Knowledge Management System to the community to enhance capability to reconfigure and modify the SAP and applications on the appropriated ways. Expand Product into different business and technical areas Develop the new products and modules to support the market changes such as CRM system, SCM system as business concern or BPM and SOA applicable as technical concern. Develop ASPs service with individual module basis Allow the customers access and utilize the SAP system, which SAP would provide the service available as Application Service Provider. IT Consulting - SAP-ASAP action!!!
23. Alternative 1: Reinforce “NetWeaver” with KM IT Consulting - SAP-ASAP action!!! Score to align to SAP strategy 5 – Most aligned, 4 – Likely aligned, 3 – Moderate aligned, 2 – Unlikely aligned, 1 – Not aligned
24. Alternative 2: Expand Product on different areas IT Consulting - SAP-ASAP action!!! Score to align to SAP strategy 5 – Most aligned, 4 – Likely aligned, 3 – Moderate aligned, 2 – Unlikely aligned, 1 – Not aligned
25. Alternative 3: Develop ASPs services IT Consulting - SAP-ASAP action!!! Score to align to SAP strategy 5 – Most aligned, 4 – Likely aligned, 3 – Moderate aligned, 2 – Unlikely aligned, 1 – Not aligned
26. Alternative Evaluation IT Consulting - SAP-ASAP action!!! Score to align to SAP strategy 5 – Most aligned, 4 – Likely aligned, 3 – Moderate aligned, 2 – Unlikely aligned, 1 – Not aligned
28. Recommendation: Reinforce “NetWeaver” with KM Develop the NetWeaver as Commercial SAP EAI product as professional service standard. Prepare the technical readiness to be Open NetWeaver Platform as Open EAI Standard for SAP integration. Develop, Promote, and Contribute the Community of Practices to allow the developers to participate on “NetWeaver SAP Integration Experience & Expert”. IT Consulting - SAP-ASAP action!!! Community of Practice (KM): Developers and SAP contributed HR PP MM FI CO BC SD NetWeaver: Commercial EAI / Open NetWeaver
29. Actions and Impacts Developers would be volunteer as well as force to participate. The content have to be produced with quality and accurate to create the trust on Knowledge. Maintain the product/service quality as well as the technical support, which directly provided by SAP and certified SAP partners. The sale both SAP and Commercial NetWeaver would not increase at the beginning stage since implementer may not be familiar to the technology. However, it would be increased later according to the technology acceptance and existing SAP customer based. Additionally, the next phase, SAP shall provide the separated module installation and configuration, which it would serve the customer needs as well as enhance the EAI functions to support the future customers’ business changes. IT Consulting - SAP-ASAP action!!!
30. Conclusion Get the developers as partner by making communities (like Google Android, open-social, etc) . Let companies familiar with new products, technology and concept. “ Let Customers Do Their Job” – The Long Tail Improve the products and service and gear to Business Oriented. Software-as-a-Service ex) SAAS IT Consulting - SAP-ASAP action!!!
31. Thank you Challenge SAP – ASAP before Enemies PASs you!!! IT Consulting - SAP-ASAP action!!!