Session 3 Flashcards
(23 cards)
What is the configuration approach?
i. The configuration approach allows customers to configure IT systems in the best way that fits their processes. Companies don’t necessarily have to adjust their processes to fit the software, they can configure the software to fit their processes.
What are the advantages of the configuration approach?
i. The configuration approach allows customers to configure IT systems in the best way that fits their processes. Companies don’t necessarily have to adjust their processes to fit the software, they can configure the software to fit their processes.
ii. Very flexible, user tells the system exactly what they want.
iii. Doesn’t require a company to write code, they just have to configure the system properly – typically the work of the CIO.
What are the disadvantages of the configuration approach?
i. Companies really have to understand and have clear processes. If they do not, the system can’t be configured to match those processes.
ii. These systems can be very difficult to implement. Often implemented in stages.
iii. If not configured properly by the CIO or whoever is setting it up, users might just assume that the system “doesn’t work” and it can develop a poor reputation.
What does ERP stand for?
Enterprise Resource Planning
Why are ERP system popular?
Allow for flexibility, can add/drop different modules.
Modules are well integrated with other modules. Called the “Transaction backbone” because process core business transactions.
Companies have the flexibility to configure the processes in ERP software. Systems like SAP allow even more flexibility. Platform strategy allows companies to use solutions that are not necessarily developed by SAP.
What is the platform strategy with regards to SAP?
SAP develops the platform that different applications (modules) run on.
What are the opportunities of the platform strategy?
i. Allows SAP to focus resources on developing platform instead of spending time and money coding modules and solutions for particular industries/companies
ii. Drives engagement on the developer side, which in turn drives customers to the platform and vice-versa.
iii. Business expertise is pooled via industry-specific groups and forums to discover needs and use cases – SAP is a technology company and doesn’t have this expertise
iv. SAP’s sales force is designed to only target large companies – partnering with 3rd party developers provides an entryway to small- and medium-sized companies
v. Positive network effects of utilizing a platform versus just a solution. SAP Developer Network (SDN) is an active community where developers, IT architects and system administrators posts questions and answers to questions about SAP. Reduces the amount SAP has to invest in supporting customers. Average response time is less than 20 minutes.
vi. Customers can mix and match data and services to create “best-of-breed” application solutions that best suite their companies.
What are the risks of the platform strategy?
i. Possible dilution of the SAP name and/or the integrity of its product.
ii. Limited security/quality control of platform-based applications
iii. A partner may create applications that leverage both SAP and non-SAP ERP modules, increasing the chances that failures may be attributed to SAP
iv. Tech support becomes more difficult as platform-based apps are not developed in house
v. SAP is now relying on other companies to supply the application solutions that it’s customers want. If their partners cannot deliver, it SAP could suffer. If customers decide developing SAP solutions are no longer a priority, it leaves SAP in a difficult position. They need to figure out a way to deliver the applications their customers want.
How might SAP be more attractive to small and medium sized companies?
a. Lite Version designed to be compatible with limited types of businesses like Service, Retail, and Manufacturing.
b. Limited Modules with Design Consultation feature included for simpler system that would reduce oversight.
c. Tech Support Discussion Board or similar info sharing site to save consulting fees for simpler versions.
d. Possible open source for internal modification.
e. Start companies off with an essential set of Financial & Supply Chain Modules
f. Get SAP systems integrated before small/medium companies become large
g. Build a smaller, more structured, out of the box offering with fewer options/add-ins.
h. Provide them with a core set of simplified product offerings (Word, Excel, and Powerpoint but not Access, Visio, and Project).
i. Creating a community of experts for smaller sized businesses
j. Incentivize the partner network to target smaller businesses
k. Arrange agreement for partner network to receive option for future implementation with customer or for them to receive a piece of the royalty stream.
l. Have them provide training for individuals in the companies’ IT/information systems departments.
m. Partner with smaller companies.
Describe 4 of the 7 parts of SAP’s Ecosystem?
- SAP Developer Network
- Business Process Expert
- Enterprise Services
- Industry Value Networks
- Standards team
- Independent SAP User Groups
- Independent Software Vendors
Give a general overview of SAP’s ecosystem.
a. Ecosystem was not about hub and spoke, it’s about peer-to-peer connection which is enabled by SAP tech. “Our communities enable co-innovation that provides significant value to our customers, our partners and our firm. Communities drive new ideas, work practices, and approaches that we aim to deliver through our software and with our partner solutions. We work hard to orchestrate our communities so that peer-to-peer connectivity takes place across all SAP stakeholders.”
Describe SAP’s SDN.
b. SAP Developer Network (SDN) – SAP hosted discussion forums. A community of developers, IT architects, and system administrators that communicate about SAP application solutions and developing for them. Questions are answered quickly, typically not be SAP employees. Reduces response time by crowdsourcing. Reduces the amount of resources SAP has to dedicate to supporting customers/developers. Increases productivity of IT staff for customers. Also allows customers to share the applications and tools they have developed which sometimes turns into additional improvements to the tools being added by other developers.
Describe SAP’s BPX.
c. Business Process Expert (BPX) – Community to connect ecosystem members responsible for creating models of new ways for enterprises to connect internally and externally. Allowed members to share industry specific solution maps, along with interactions amongst business process experts and tech devlopers, to assess feasibility of new process creation. BPX members collaborated on such things as change management, project leadership, and industry best practices.
Describe SAP’s ES.
d. Enterprise Services (ES) – Community of partners that aided in core services development. ES community members are leading customers and partners that SAP invited to collaborate to define the exact specification that would be used by internal SAP developers to create the next round of enhancements on the platform. Invite only so it was clear SAP had the rights to intellectual property.
Describe SAP’s IVN.
e. Industry Value Networks (IVN) – Senior executives in specific industries and the specialized SAP partners that served those industries to assess key challenges and opportunities facing them.
Describe the SAP “Standards team.
f. Standards team – team that actively engaged in a variety of tech and industry standards communities, shaping standards to maintain an SAP advantage and/or create a level playing field for all vendors.
What are Independent SAP User Groups?
g. Independent SAP User Groups – SAP engaged these groups to ensure customer feedback is incorporated into development.
What are ISVs?
h. Independent Software Vendors (ISVs) – SAP has structured program called SAP PartnerEdge where they manage partners who help develop for the platform. See next question for types.
What are the criteria to be a Tier I partner with SAP?
i. Everything in tier II but SAP would actually sell product.
ii. Around 15 Tier I partners.
iii. To SAP these are “mission-critical” applications. Customers expect that these products be of a very high quality.
iv. Tier I partners determined by market demand – if there is a gap in a particular offering that is demanded by customers, SAP will look for a partner that can provide the solution.
v. Demands trust to ensure that joint strategy discussions, tech development, and coordination were optimal in execution, worked best for customers, and would mutually benefit the two firms.
vi. Traditionally established players like Microsoft, IBM, etc. Demonstrate capacity to execute.
What are the criteria to be a Tier II partner with SAP?
i. SAP endorsed solution where products were referred to as “Endorsed Business Solutions”
ii. About 25 partner solutions in the category
iii. Require considerable technical due diligence
iv. No guarantee you will reach Tier I
What does it take to be a “Powered by Netweaver” partner?
i. “software fully integrated with SAP’s platform.
ii. Ensures high quality tech integration of third party software.
iii. Software has to be built on top of the NetWeaver web app server and has to withstand several quality and reliability tests.
iv. Program includes additional marketing support and a closer business relationship between partner and SAP.
v. Can use brand logo on software.
vi. SAP supplies varying levels of marketing support depending on how well the solution complements their own offerings.
vii. In select cases SAP acts as a reseller.
Describe 3 pros to making Nakisa a Tier I partner?
i. HCM (Human Capitol Management) segment is fairly large, only other big competitor Oracle
ii. Opens up HCM market for SAP and could provide a competitor advantage
iii. Tier 1 or tier 2 would be strategic to ensure the high quality of the products
iv. Would potentially encourage adoption of the Nakisa platform by more customers. Nakisa is easy to use for customers.
v. Would ensure quality of future development and execution
vi. If SAP feels that there is a strong enough market for succession planning applications and related applications, it would make sense that they would make Nakisa a partner. Nakisa appears to have proven they have the ability to provide a product that is popular in a market that seems to be important to SAP. SAP should ask what sort of gap would be left if Nakisa wasn’t developing the products they are. Nakisa has other opportunities (they mention working with Oracle).
vii. What sort of talent does Nakisa have? Nakisa might have a particularly talented team. They may be a small firm, but the article suggests that the application for succession planning was an important application for SAP. Does Nakisa have a talented team that might develop future critical apps? If so, it might not matter how big they are, they could be an important asset to SAP.
viii. Nakisa is a smaller company. This gives them a different perspective on what types of applications might be useful to small or medium sized businesses. SAP might want to see Nakisa’s size as a strength instead of a weakness. By allying with a smaller business they could potentially gain a better understanding of what types of applications are critical to small businesses.
Describe 3 cons to making Nakisa a Tier I partner?
i. HCM is not part of SAP’s core business, not mission critical
ii. Nakisa would still be working with SAP’s competitors
iii. Partnering might be a risky option. They don’t know if they Nakisa can scale. They aren’t a large company and haven’t proven they can grow with the needs of SAP.
