Posts Tagged ‘next generation’

News Analysis: SAP Business Suite on HANA

Next Stop On The Road To HANA: SAP Business Suite

In a global announcement in Palo Alto, New York and Frankfurt, SAP’s top executives Dr. Vishal Sikka, Rob Enselin, Jim Haggeman Snabe, and legendary founder and chairman Dr. Hasso Plattner announced availability of SAP’s Business Suite powered by SAP HANA.  SAP has rewritten the Business Suite to work on SAP’s HANA platform and believes that customers will benefit for four reasons:

  • Smarter. The embedding of intelligence at the transactional level opens up new business models and process transformation.  SAP’s customer Derek Dyer, Director of Global SAP Services for Deere and Company, emphasized that SAP ERP powered by SAP HANA has “revolutionized” how products and services are introduced to the market, especially in the MRP world.  They see some transformational innovation as a result to faster MRP runs.

    Point of View (POV):
    Embedded intelligence has been a key failure in today’s existing transactional applications.  Customers have sought access to not only real time reporting, but also prediction.  The goal is to get to smarter decisions at all levels of the organization. Customers will benefit from embedded intelligence.  However, this will require people and technology training of the system to identify the patterns and algorithms required to serve up insight on demand.  This will require intelligence at every vertical and micro vertical business process.  Moreover, right-time requirements for in-context computing will turn out to be the surprise benefit as relevancy becomes more important through time, location, role, relationship, sentiment, and intent.  Relevancy and context provide the smartness that is missing in today’s systems.
  • Faster. SAP Business Suite powered by SAP HANA addresses the need for speed.  The in-memory columnar database reduces the input/output (I/O) time and allows for fast access to information.  The result – faster processing and faster scenario evaluation.  Fast transaction management times lead to faster decision making.

    (POV):
    The analytics and crunching capabilities is what’s driving organizations to seek faster speed.  Speed is the difference between a five day drug recall and a five minute drug recall.  Speed is the difference between a 30 day supply chain plan versus the ability to reroute 2 iPhones to your store in 30 seconds.  The impact is huge for customers if SAP does succeed.  SAP’s not the first to do this as Workday has already done this for HR and Finance.  However, for the entire SAP suite and given SAP’s market share, this is a big deal as this reduces the need for separate business intelligence systems.  The performance difference will create a huge competitive advantage for those who adopt versus those who do not.
  • Simpler. SAP Business Suite on HANA delivers consumer grade user experiences.  The goal is to embed live insight into business processes to drive immediate action.  Today, people expect consumer-grade user experiences and the power to translate their live insight into immediate action. Enzo Bertolini, CIO, Ferrero Group expects to improve the trade promotions and supply chain planning process through both better simulation and mobile access.

    (POV):
    SAP Business Suite on HANA provides SAP an opportunity to rethink how information is created, consumed, and shared.  The push to a design thinking focus within SAP has led to significant improvement of the user experience throughout their portfolio of products.  SAP Business Suite on HANA will be an opportunity to show case this new user experience.
  • Open. SAP plans to support database technology and vendor choice for its customers.  Many database partners have committed to work with SAP support in-memory optimizations and provide the necessary support to ensure that customers will succeed.  SAP is providing rapid deployment solutions, trained implementation consultants, and a comprehensive set of services to help clients make the migration to SAP HANA.

    (POV):
    SAP has the opportunity to drive down database costs and improve performance.  While the pricing model will be based on the percentage of application value, SAP must find a way to drive down overall costs if it is serious about improving adoption.  This licensing requirement must be addressed as it will emerge as the most significant barrier to adoption.

SAP Faces A Challenge of Adoption Not Because of Technology, But Because of Customer Vision

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Monday’s Musings: Trends In The Top Software Insider Posts of 2012 (#softwareinsider)

Thank You For Your Support

SoftwareInsider.org generated almost 10 million page views in 2012 (see Figure 1).  This does not include syndication through Constellation Research, Forbes (discontinued in 2012), Enterprise Irregulars, Computerworld UK, and other great media partners.

Figure 1.  Software Insider Achieved 9.8M Page Views for 2012

Classic Posts Address The Key Fundamentals In The Disruptive Technology Shift

Four posts have made the all time favorite list and address the 5 consumer technology forces that influence enterprise software.

  1. Monday’s Musings: How The Five Consumer Tech Macro Pillars Influence Enterprise Software Innovation
  2. Research Report: The 18 Use Cases of Social CRM and The New Rules of Relationship Management
  3. Tuesday’s Tip: Understanding the Many Flavors of Cloud Computing
  4. Best Practices: Five Simple Rules for Social Business

2012 Top 40 Reflects A Broader Shift To Business Outcomes And Technology Adoption

Analyst Relations and the World of Influence - The top blog post of 2013 discussed the future of the industry analyst versus legacy analyst firms.

Consumerization of Technology and The New C-Suite – The impact of technology on the C-suite has never been greater.  As business strategy relies more on technology, CMOs, CFOs, and other line of business heads can expect to work more closely with the CIOs and CTOs.

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Monday’s Musings: Understand The Four Organizational Personas Of Disruptive Tech Adoption

Pace of Innovation Exceeds Ability To Consume

Rapid innovation, flexible deployment options, and easy consumption models create favorable conditions for the proliferation of disruptive technology.  In fact, convergence in the five pillars of enterprise disruption (i.e. social, mobile, cloud, big data, and unified communications), has led to new innovations and opportunities to apply disruptive technologies to new business models.  New business models abound at the intersection of cloud and big data, social and mobile, social and unified communications, and cloud and mobile.

Unfortunately, most organizations are awash with discovering, evaluating, and consuming disruptive technologies.  Despite IT budgets going down from 3 to 5% year over year, technology spending is up 18 to 20%.  Why?  Amidst constrained budgets, resources, and time limits, executives are willing to invest in disruptive technology to improve business outcomes.  Consequently, successful adoption is the key challenge in consuming this torrent of innovation.  This rapid pace of change and inability to consume innovation detract organizations from the realization of business value.

Organizations Fall Into Four Personas Of  Disruptive Technology Adoption

A common truism in the industry is “Culture trumps technology”.  As organizations apply methodologies such as Constellation’s DEEPR Framework in improving adoption, leaders must first determine which of the four personas best fits their organization’s appetite for consuming and innovating with disruptive technologies.

The personas of disruptive technology adoption assess organizational culture in two key axes (see Figure 1).  The first is how incremental or transformational an organization looks at applying disruptive technology to business models.  The second assesses how proactive or reactive an organization is in carrying out new initiatives.  Based on these dimensions, the four personas include:

  1. Market leaders. Market leaders prefer to drive transformational innovation.  They look at technologies as enablers in disrupting business models.  They see competitive differentiation in delivering outcomes to customers. Market leaders accept failure as part of the innovation process.  They fail fast and move on.
  2. Fast followers. Fast followers prefer to react to the success of market leaders and their experiments.  When they sense success, they tend to jump in.  Fast followers do not like to fail and rapidly apply lessons learned from market leaders into their road maps.  Fast followers tend to deliver scale in the markets as a counter balance to arriving later in the market.
  3. Cautious adopters. Cautious adopters proactively deliver incremental innovation.  They tend to take a more measured approach and spend more time studying how they can improve an existing success than creating a transformational change.  Cautious adopters often come from regulated industries where security and safety are paramount objectives.
  4. Laggards. Laggards tend to procrastinate on applying innovations to their business models.  They prefer not be bothered by trends and will only react when the trends have moved beyond mainstream.  They see value in waiting as prices will drop over time as success rates increase over time.  Laggards enjoy waiting.

During the interviews and discussions with the 2012 Constellation SuperNova award participants, key questions emerged in the decision process on whether to adopt or pass on a disruptive technologies.  These questions aligned well with the four personas of disruptive technology adoption.

Figure 1.  Organizations Should Understand Which Persona Of Disruptive Tech Adoption Describes Them Best

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Event Report: Dreamforce X (#DF12) Emerges As The South By Southwest (#SXSW) For The Enterprise

Dreamforce Represents The Mecca For The “Art Of The Possible” In The Enterprise

Whether Salesforce.com’s flagship conference at Moscone Center was the most attended conference (~48,000) or the most registered for event (~90,000), matters not.  When examined in context of the magnitude of what was accomplished, the impact of this 10th annual event transcends attendance numbers.  Business folks and the converted IT brethren converged on the week of  September 18th, 2012, to see what the future could be inside the enterprise.  They left with inspiration and the gospel of what was possible, as told by those before them.  The event represented the intersection of where aspiration meets innovation for the enterprise.

Key takeaways from interviews with over 100 attendees reflect the following trends:

  • Attendee sentiment signals the return of the front office.  Prior to the coining of the CRM term, front office was the term which defined marketing, service, eCommerce, and sales force automation.  The move back to integrated customer experiences reflects a renewed interest in all the front office touch points and all the support in the back office required to support the customer experience.  Attendees walked in with questions about how to integrate their legacy ERP and expose their transactional systems into the front office.
  • Customers seek knowledge and case studies on business transformation. Delegations arrived to see how they could change their business.  Most came with both business and IT to learn from the best practices of others.  Almost every customer case study session was packed and common questions revolved around, “How did you do that?”
  • Product announcements and pre-announcements bring the enterprise closer to the consumer experience. Pre-announcement of Salesforce Identity for Winter 2013 will provide users with Facebook-like single sign on and identity management services.  The availability of the Touch Platform services will provide a write once, deploy anywhere touch based mobile UI Experience.  The pre-announcement of the Force.com Canvas provides a UI layer to run any other application within the Salesforce.com environment.  The App Exchange Checkout delivers out of the box billing for developers and improves the users app store experience.  Geolocation capabilities in the pilot of database.com in the Winter 2013 release will improve mobile experiences.  Chatter communities pilot in Fall of 2012 and pre-announcement addresses the issue of multiple group management.
  • More…

Research Summary: Best Practices: Consolidated CRM Deployments Drive Paths to Modernization And Social CRM (SCRM)

Forward And Commentary

As with any maturing product category, CRM applications have evolved over time from point applications to best of breed solutions to end-to-end suites. This report examines some common styles of modernization as CRM emerges from the systems of transaction era to the systems of engagement era and beyond.

A. Introduction

With the average CRM deployment nearing the end of their useful life, over 85 percent of line of business executives and CIOs intend to upgrade their CRM systems in the next 24 months.  Why? Customer expectations and a slew of innovative solutions have changed the delivery of customer centricity. Key factors include the need to adopt disruptive technologies, complete the customer view, and achieve business value.

Constellation’s latest survey of over 200 CRM decision makers highlights a trend to consolidate the CRM core as organizations chart four paths to CRM modernization.  The four paths – stay with status quo, move to shiny new CRM, consolidate and augment, and modernize and surround with best-of-breed – represent pragmatic approaches to achieve customer centricity.

Regardless of approach, Constellation recommends that executives approach CRM modernization with a lens that accounts for including tangibles, intangibles and contingencies in the calculations of business value. Using the Constellation Business Value Framework, organizations can quickly compare the four paths of CRM modernization and determine the most appropriate path.

B. Research FindingsBest Practices Indicate That a Consolidated Core Is the First Step to Modernization

Among 203 respondents, the majority (85.7 percent) intends to make significant efforts to modernize their CRM efforts in the next 24 months (see Figure 1.). The four paths to modernization include:

  1. Stay with status quo (14.3 percent). Organizations may choose to continue business as usual. The catalysts for change include major events such as new business models, merger and acquisition, or regulatory requirements. Status quo includes keeping the system as is. Most organizations in this category have either really good adoption or overbought and barely take advantage of existing capabilities. Backers of the status quo scenario find little business value justification and line of business support in making any changes. Many line of business executives and CIOs gain peace of mind knowing that their CRM landscape remains consolidated on one or two platforms and can deliver the power of an integrated core.
  2. Move to shiny new CRM (21.2 percent). Organizations may choose to stay with their existing vendor to avoid any mass changes in training, adoption and implementation costs. Another popular option will be to do a full out rip and replace. The financial wonks will weigh the cost of a reimplementation against the cost of doing nothing – status quo and making an upgrade with an existing vendor. CIO-led organizations will want the power of an integrated core and minimize point solutions.
  3. Consolidate CRM and augment with best-of-breed (37.9 percent). Organizations may choose to consolidate their CRM environment and surround with best-of-breed applications. SaaS applications and CRM point solutions now play a key role in enabling extensibility to CRM customers. Augmentation with third-party solutions with an integrated core not only ensures that business users gain critical functionality, but also provides users with leverage in future contract negotiations. With CMOs and line of business executives in the front office taking back IT budgets, expect CIOs to argue for consolidation of the core as a call for sanity in overall IT strategy.
  4. Upgrade CRM and surround with best-of-breed (26.6 percent). CRM deployments typically run a five to seven-year life cycle. With the last big set of implementations in the 2004 to 2005 era, almost 50 percent of organizations plan an upgrade. Many line of business executives want to upgrade their core CRM system and then modernize their integrated core by adding best-of-breed apps on top of CRM. This option resonates best with line-of-business-led organizations and those with rapidly changing business models and dynamic businesses.

Figure 1.  Get To SCRM By Taking The Four Paths To CRM Optimization

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News Analysis: The Implications Of Oracle’s Acquisition Of Taleo

Catch my colleague Yvette Cameron’s point of view here. She covers Future of Work for Constellation Research, Inc.

Oracle Plays Catch Up With Public Cloud Ambitions

On February 9th, Oracle announced its intention to acquire Dublin, CA based Taleo for $1.9B.  Taleo is a cloud based talent management software provider with 5000 customers and 1400 employees.   Key take aways to consider:

  • Moves by SAP and Oracle intend to compete with next generation cloud HCM companies. Taleo provides recruiting and on boarding, performance management and goal setting, compensation, succession, and learning and development.  This complete suite tied to reporting and analytics is designed to streamline human resource operations and employee career management across retail and hospitality, travel, healthcare, media and entertainment, financial services, technology, and energy and mining.  Marquee customers include Starbucks, Starwood, Hyatt, JP Morgan Chase, HP, Dell, Conde’Nast, United, American Airlines, Tesora, Blue Cross blue Shield, and Sutter Health.to customers.

    Point of View (POV):
    Oracle sees advantages in acquiring a leading player in the talent management space .  For years, both Taleo and SuccessFactors ate into Oracle’s existing customer base for talent management.  Consequently, other cloud based HCM and HR Tech vendors such as Ceridian, CornerStone OnDemand, FairSail, Kinexa, UltimateSoftware, and Workday continue to attract line of business customers looking for innovations not being delivered by their core HCM providers (i.e. Oracle, PeopleSoft, SAP).  More importantly, cloud computing if properly designed can improve the pace of innovation delivered to customers.
  • Oracle continues to buy its way into a public cloud. Oracle continues to react to buyer sentiment and preference for cloud based solutions with this second major acquisition in what they term the “public cloud” space.  Oracle purchased RightNow for $1.43B on October 24th to address its gaps in customer service solutions.  The Taleo purchase addresses a gap in Talent Management solutions that rival SAP plugged with its recent acquisition of Success Factors for $3.4B .

    Point of View (POV):
    These defensive plays indicate a realization that Cloud delivery emerges as the predominant option for applications. Based on Oracle’s current road map, one can expects Oracle to acquire its way into many other edge applications not listed on its Public Cloud road map (see Figure 1).  Some other applications could include social business solutions, expense management, learning solutions, pricing management, identity management, and mobile device management.   However,  Oracle’s public cloud acquisition strategy so far lacks a key requirement – a choice for multi-tenant architected solutions.  While both RightNow and Taleo have some modules that are multi-tenant, in most instances, these applications have been delivered in single tenancy or in multi-instance. Multi-tenant solutions will provide clients with the most efficient upgrade path and lowest long-term cost structure.  The lack of a public strategy to address this issue remains a significant concern for customers and industry observers.

Figure 1. Oracle’s Vision For A Public Cloud

Source: Oracle Corporation

 

  • Seats matter most in a world of CoIT. Oracle hopes to gain massive cloud scale through Taleo’s 74 million transactions per day and 240 million candidates on Taleo Talent Exchange.  The sheer number of users is massive.

    POV:
    Unlike CRM or ERP, the play for HR is all about acquiring the biggest base of users – employees.  With consumerization of IT (CoIT) in full swing, the goal is to grab as many users upfront and then over time cross-sell them into other edge applications which converge between enterprise and consumer.  Why?  The new strategy among the enterprise apps vendors is land and expand. The largest active user bases will win the war of attrition.

The Bottom Line for Customers: Goodbye On-Premises, Hello Cloud World!

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News Analysis: Tidemark Gains $24M in Series C Funding, Redpoint Ventures Leads Round

Big Data, Cloud Based Performance Apps, Drive Interest In Additional Investment

Redwood City, California based Tidemark announced that it raised $24 M in Series C funding from Redpoint Ventures, Greylock Partners, Andreessen Horowitz, and Dave Duffield.  Key points include:

  • Redpoint Ventures leads the round and Geoff Yang joins the board. To date Tidemark has raised $35M with $6.3M in its Series A and approximately $5M in its Series B.  Tidemark will add Geoff Yang, a founding partner of Redpoint Ventures to the company’s board of directors.

    Point of View (POV):
    Redpoint Ventures has had a great history with investments in enterprise software and cloud computing.  Success stories include Concur, Documentum, Fanfare, FileNet, Heroku, Metreo, Polycom, Responsys, Sybase, and Zimbra.  More importantly, current board of director Phil Wilmington, the former CEO of OutlookSoft and co-CEO of PeopleSoft, has been named Executive Chairman of the company.
  • Funding will enable Tidemark to expand both sales efforts and expand initial EPM use cases. Today Tidemark offers a suite of EPM applications that include metrics management; strategic, financial, and operational planning, budgeting, and forecasting; and profitability modeling.  With additional funding, Tidemark plans to build out its enterprise sales force and target the growing market for business intelligence systems that address both big data and real-time data driven decision management.

    Point of View (POV):
    Tidemark’s solution provides forward looking analysis and real-time performance management.  While the first set of use cases address the cloud based enterprise performance management market, the core software provides a key foundation in bringing applications away from transactional systems and into a new world of engagement and experience systems.  Key features include parallelized in memory analytics, native cloud data integration, native HTML 5 interface, mobile first UI, and real-time collaboration.

The Bottom Line For Customers: Tidemark Brings Real-Time Data Driven Decisions To The Cloud

The rise of big data, aging BI systems, and the need for cloud based approaches lead many organizations to rethink their business intelligence (BI) and business analytics strategies.  As BI continues to evolve from fragmented and historical reporting to pervasive, predictive, and real-time decision support, an organization’s success increasingly depends on the support for an expanding information matrix.  Tidemark represents the next class of solutions that can address the big data challenge in the cloud, while delivering real-time and actionalbe solutions that are easy for line of business users to consume in a social, mobile, and collaborative fashion.  Consequently, organizations such as Acosta and US Sugar are already moving in this direction.

The Bottom Line For Technology Vendors: Expect Investors To Increase Funding For Enterprise Class Solutions

The buzz and rage over the past three years has focused on consumer plays in the valley.  However, activity in the past six months suggest that investors are making the shift to enterprise focused start-ups.  Why? With 1 out of every 1000 consumer plays making a successful exit, the pivot to enterprise appears to be a safer and less crowded bet.  Investors and enterprise class technology companies can expect 2012 to be an exciting year of mergers, acquisitions, investments, and IPO’s.

Your POV.

Are you ready for next gen analytical apps? If you are an existing EPM user, what will make you make the switch? Are your current applications cutting it?  Got a question?  Add your comments to the blog or reach me via email: R (at) ConstellationRG (dot) com or R (at) SoftwareInsider (dot) com.

Related Research:

Reprints

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Disclosure

Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy, see the full client list on the Constellation Research website.

Copyright © 2012 R Wang and Insider Associates, LLC All rights reserved.

Vendor Event: Workday Predict And Prepare 2011

Title: Workday Predict And Prepare 2011
Start Date:
2011-12-07  11:00 am PST
End Date:
2011-12-07   12:00 pm PST
Location:
Webinar Link

For the fourth year in a row, join the country’s top IT, HR and Talent Management analysts and consultants for their predictions of next year’s critical trends, plus their advice on how you should prepare for them.
Their predictions include

  • SaaS becomes mainstream, and IT’s job becomes integrations
  • Companies will “rip and replace” legacy systems even faster than before
  • Self-service will become social, mobile and more gamified
  • Talent Management as a separate software category will disappear
  • Mobile will soon become employees’ first contact with enterprise software
  • Companies will do Master Data clean up in order to do Analytics
  • Sponsored by Workday, Predict and Prepare features Knowledge Infusion CEO Jason Averbook, HR technology guru Naomi Lee Bloom, and R “Ray” Wang, Principal Analyst and CEO of Constellation Research.

    Their roundtable is moderated by Bill Kutik, host of The Bill Kutik Radio Show® and Firing Line with Bill Kutik, technology columnist for Human Resource Executive® and co-chair of the magazine’s 15th Annual HR Technology® Conference & Exposition.

    Your questions will be addressed throughout the discussion.

    Register here!

    Disclosure

    Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy, stay tuned for the full client list on the Constellation Research website.

    Copyright © 2011 R Wang and Insider Associates, LLC All rights reserved.

    Monday’s Musings: Real Time Versus Right Time And The Dawn Of Engagement Apps

    Different Flavors Of Real-Time Result In Significant Implications.

    Many pundits, research insight folks, bloggers, and hand wavers keep talking about the need for real time in social business, analytics, mobile, and other disruptive technologies.  Given the volume of data, bandwidth constraints, and magnitude of business processes to be supported, is the notion of real time even possible?  It’s been the holy grail of many technology suppliers to state they are delivering information or reacting in “real-time”.

    While researching the issue, I rediscovered a classic post from event processing researcher Dr. Opher Etzion, from IBM Labs Haifa.  The central thesis from this 2007 classic post is that real-time is quite valuable in the context of “the damage caused when missing a deadline”.  When you look at that from a business value perspective, his approach leads to four types of real-time (see Figure 1):

    1. Soft real-time: there is a sense to react after the deadline, but the utility decreases (maybe fast) and at some point gets to zero – no use to do it at that point, but no damage.
    2. Firm real-time: The utility go immediately to zero when the deadline is missed – no use to do it after the deadline, but no damage.
    3. Hard essential: Missing the deadline – the utility function goes to a constant negative value; there is a constant penalty.
    4. Hard critical: Missing the deadline – the utility function goes immediately to “minus infinity”, means: a catastrophe will happen.

    Figure 1. Four Types Of Real-Time And their Implications Of Missing A Deadline

    Source: Dr. Opher Etzion

     

    The Shift From Real-Time To Right-Time Prioritizes Events By Business Value

    A deeper examination of the four types shows that business value can easily be quantified in the hard essential and hard critical types as these result in penalties and disasters when real-time is not achieved.  In the case of firm real-time, the lack of timely response results in a wasted and non-valiant effort.

    Consequently, organizations must prioritize business processes for real-time by business value achieved and potentially lost.  Essentially, this prioritization results in the notion of right time delivery of information. Moreover, right time increases in value as a concept when gauged against reactiveness versus proaactiveness.

    As we break down business processes by interactions, an emerging class of applications move beyond transactions.  In fact, these applications must quickly determine right time actions at the point of engagement that follow 4 distinct types (see Figure 2):

    1. Proactive value added anticipation: the heart of engagement applications, anticipation allows for proactive response.  Examples include offers, suggestions, actions based on context drivers.  Context drivers could include location, presence, time, proximity, relationships, previous purchase behaviour, etc..
    2. Mission critical reactions: where most “real-time” use cases tend to fit, this type addresses deadlines, commitments, and regulations.  Examples include response times, regulatory requirements, alerts, threshold triggers, and service level agreements.
    3. Nice things to do: reminders with minimal impact but provide proactive engagement.   Examples include status updates, background information suggestions, and non-critical notifications.
    4. Timeless responses: where useless information resides in an abyss.  Examples include log reports, short action items, nice to know information from activity streams.

    More…

    Monday’s Musings: The Race For Enterprise Class Consumer Tech

    Start Ups Chase Enterprise Dollars As Freemium Model Plays Out

    I’ve been spending time with emerging technology start ups over the past 3 months.  The good news – innovation in the valley is alive and well.  Most of these ventures start with solving a consumer problem and hope for massive viral success in the freemium model.  The bad news – the VC’s hope for quick turnarounds that result in exit strategies to the deep pockets of Google, FaceBook, Microsoft, and Zynga.  The sad truth -  you and i know most will never make it.  When that realization hits, the VC’s hurry and move to the obvious next step – find an enterprise angle.

    Consumer Tech Must Meet Five Elements To Earn Enterprise Class Status

    To make it in the enterprise requires a mindset change.  Business models focus on well… making money!  We’ve spent much time coaching clients on how to move from freemium to premium.  We also have to explain how an enterprise customer (i.e. CIO, CMO, Line of Business exec) may make a decision.   Inevitably, our buy-side clients will ask, “Is this solution fit for the enterprise?”  In a post from October about how consumer tech trends will enter the enterprise, we discussed the 5S’ of for enterprise class software:

    1. Safe. Organizations expect these solutions to not only integrate with ease but also, not harm existing systems or jeopardize how users perform daily work and operations.
    2. Secure. More than just role based security mechanisms, these solutions should pass encryption requirements, prevent data intrusion, and protect key intellectual property assets.
    3. Scalable. Solutions should work in a wide range of environments, meet wide ranges of usage demands, and perform well across the globe.  Users should be able to grow demand and scale down as well as up.  Scaling up should lead to a lower cost per unit.
    4. Sustainable. Consumer technologies must meet requirements for flexibility and adaptability over longer periods of time (e.g. 7 to 10 years).  Training programs, knowledge transfer mechanisms, and support communities should be readily accessible.
    5. Simple. Software vendors should employ design thinking to build solutions based on how people want to use mobile, social, analytics, video, and cloud in an enterprise context. Enterprise software should deliver in an easy to roll out and use manner.

    There are probably more criteria to add here and I encourage you to add your thoughts to the 5S of enterprise class. Kudos to Christian Pantel for his addition of the 5th S – Simple!

    More…

    Product Review: Inside SAP’s Line-of-Business OnDemand Strategy

    SAP’s Sales OnDemand Strategy Reveals A Longer Term Product And Cloud Strategy

    In an exclusive briefing on February 24th with SAP’s Executive Vice President of Line Of Business Applications, John Wookey, he provided fresh insight into the new product design and Cloud philosophy at SAP.  This pre-CeBit announcement coincided with the SAP Analyst Day in Boston.  A few take-aways from the briefing reveal:

    • An investment in design thinking behind future Line-of-Business products. With consumer technologies entering the enterprise at a blistering pace, it’s become obvious that today’s enterprise apps only support a small percentage of the work people must accomplish on a daily basis.  SAP’s Line Of Business apps team starts with a design thinking approach.  The initial objectives leverage SAP’s rich history of process excellence, focus on people empowerment, and align with business objectives to achieve a clear purpose.etc.

      Point of View (POV):
      The software industry has taken note in how Design Schools around the world solve problems in user experience and adoption.  SAP’s design thinking process reflects the classical 7 phases of define, research, ideation, prototype, objectives, implement, and learn.  Pairing a design thinking approach and agile development methodologies has led to an understanding of what tasks people need to get done and how to quickly create iterations.   The result – more intuitive user experiences and new product releases every 6 months.  More time is spent on upfront design not engineering.  If successful, Co-CEO Jim Hagemann Snabe will have shown how his focus on agile will pay off across the development organizations.

    • Solutions such as Sales On Demand (Sales OD) that empower people to be effective. From the beginning, the product begins with collaboration through the use of activity streams (i.e. Facebook, Twitter like user experience).  Team collaboration is enhanced with access to key content, analytics, and even competitor information (see Figure 1).  Design points focus on delivering the right content, to the right people, at the right time, on the right form factor.  Analytics provide self-service reports (see Figure 2).  Sales effectiveness concepts build around the 4Cs (i.e. the right context, right contacts, right content, and the right contract).

      POV:
      Sales Force Automation (SFA) solutions in the past failed to address the needs of the Sales Professional and the customer.  As with most customer relationship management solutions, they covered the “M” in CRM and ignored the customer (C) and the relationship (R). SAP’s Sales On Demand product is different as it addresses the key issues in helping sales professional receive relevant information and collaborate with their networks in an intuitive manner.  Users will be surprised that this is an SAP application. Despite only delivering 20% of the full SAP CRM suite Sales application capability, the 20% provided delivers 80% of the key capabilities to support sales person effectiveness.

    Figure 1.  Activity Streams (Feeds) Deliver A Intuitive And Collaborative User Experience

    (Source: SAP)

    More…

    Research Report: Constellation’s Research Outlook For 2011

    Organizations Seek Measurable Results In Disruptive Tech, Next Gen Business, And Legacy Optimization Projects For 2011

    Credits: Hugh MacLeod

    Enterprise leaders seek pragmatic, creative, and disruptive solutions that achieve both profitability and market differentiation.  Cutting through the hype and buzz of the latest consumer tech innovations and disruptive technologies, Constellation Research expects business value to reemerge as the common operating principle that resonates among leading marketing, technology, operations, human resource, and finance executives.  As a result, Constellation expects organizations to face three main challenges: (see Figure 1.):

    • Navigating disruptive technologies. Innovative leaders must quickly assess which disruptive technologies show promise for their organizations.  The link back to business strategy will drive what to adopt, when to adopt, why to adopt, and how to adopt.  Expect leading organizations to reinvest in research budgets and internal processes that inform, disseminate, and prepare their organizations for an increasing pace in technology adoption.
    • Designing next generation business models. Disruptive technologies on their own will not provide the market leading advantages required for success. Leaders must identify where these technologies can create differentiation through new business models, grow new profit pools via new experiences, and deliver market efficiencies that save money and time.  Organizations will also have to learn how to fail fast, and move on to the next set of emerging ideas.
    • Funding innovation through legacy optimization. Leaders can expect budgets to remain from flat to incremental growth in 2011. As a result, much of the disruptive technology and next generation business models must be funded through optimizing existing investments. Leaders not only must reduce the cost of existing investments, but also, leverage existing infrastructure to achieve the greatest amount of business value.

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