Menu
SAP's Simplicity Push Is Not So Simple

SAP's Simplicity Push Is Not So Simple

The Company

SAP AG

Headquarters: Walldorf, Germany

Employees: 67,700

2013 Revenue: $23.15 billion

CEO: Bill McDermott

What They Do: SAP is best known for its on-premise ERP applications, which businesses around the world use to run their operations. During the past few years, SAP has been focusing its software development efforts on Hana, an in-memory computing platform, and investing heavily in software as a service.

The Pitch

SAP has long grappled with the side effects of its software being perceived as both sophisticated enough to meet the specific needs of almost any company but also complex, expensive and unwieldy.

Under CEO Bill McDermott, SAP is pledging to make both its software and its customer-interaction processes simpler. At the Sapphire conference in June, McDermott unveiled Simple Finance, one of a planned series of Hana-powered ERP applications that use the Hana in-memory computing platform and other technologies to slim down the code base and make the user interface more appealing and productive.

Hana is attached to everything we have, McDermott said in a recent interview.

Like rival Oracle, SAP is in a transition period as its customers, who traditionally bought perpetual licenses for on-premise deployments, look to adopt cloud-based software that is sold by subscription.

The Catch

SAP may need to fine-tune its pledge for more simplicity, says independent analyst Jon Reed. SAP used to sell so much software based on its completeness of functionality, Reed says. But a products sheer depth of features is declining in importance as enterprise software buyers adopt newer, more specialized cloud applications. Nevertheless, SAP customers still want the company to cater to their specific industry needs.

The more crucial task for SAP is to make doing business with it easier, and that work is far from done, Reed says. SAP at Sapphire put out simplicity as a leadership mantra: Were going to lead you to a simple future, he says. Its a challenge for SAP to live up to. When I hear customers tell me how simple and easy it is to deal with SAP, Ill get on board.

SAPs message of simplicity is a good story for customers, says Marco Lenck, chairman of DSAG, a German SAP user group. This is the right direction for customers, but it takes investment in terms of time, knowledge and money to get there.

One CIO of an SAP shop agrees. Simple is really hard, says David Wascom, CIO of Summit Electric Supply and a board member of the Americas SAP Users Group, because all the steps that have to take place in your business dont go away.

The Score

Wascom says that he is seeing some signs of improvement lately from SAP, but hes hoping for more. One of the biggest challenges I have as a business executive is not how to get SAP to give me some particular piece of functionality, he says. The challenge is managing the risk of my SAP investment. To that end, SAP should improve customers visibility into its product road maps, Wascom says.

While committed to SAP technology, Wascom offered cautionary advice to any fellow CIOs who are considering the companys products.

The big message is that SAP, among the platforms Ive looked at, is the most powerful and most flexible to meet whatever your business needs are, he says. But with great power comes great complexity. Its not like installing Microsoft Word.

SAP would benefit from having simplicity ombudspeople who would guide customers through difficult software migrations and improve the entire customer experience, says independent analyst China Martens.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags IT managementSAP

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments