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Episode 07: myNewsWrap – SAP and Microsoft (DSAGLive Special Edition)

Links to Video and Podcast

  • YouTube: Link
  • AnchorFM (Audio Stream): Link

DSAGLive - "Looking ahead to the long-term future: safeguarding sustainable success"

  • Press Statements

    • DSAG Survey (summer 2020) and Press Release "Pushing back against coronavirus with digitalization" (Link)
    • Handelsblatt "Ein Jahr SAP-Chef: Wie Christian Klein den Druck erhöht hat" (Link)
    • Handelsblatt "Viele SAP-Kunden frieren Investitionen ein" (Link)
    • Chefbüro "Mit Digitalisierungsschub gegen die Corona-Krise"(Link)
    • Business Insider "SAP-Chef Christian Klein bekommt für sein erstes Jahr ein solides Zeugnis — dennoch fahren viele Kunden ihre Ausgaben zurück" (Link)
  • Upcoming SAP podcast "Close the Gap" by Christian Michel with several interviews in the context of DSAGLive (Link)

  • Replay of Keynotes available in YouTube

Day 1

Keynote "Zukunft mit Weitsicht! Nachhaltig gewinnt" (Marco Lenk - DSAG)

  • As every year basis for the talk: results from DSAG survey
  • Digitalization
    • Crisis made it apparent: Digitalization is needed more than ever, but IT budget cuts are expected, sometimes severe cuts
    • Degree of digitalization in companies moved forward, but not equally distributed
    • Consequence: Tension between decreasing revenue, cut IT budgets and urgent need of digitalization
  • What about S/4HANA projects?
    • 43 percent are delaying them or pushing them back indefinitely
    • In addition: switch to S/4HANA does not equal digitalization
  • Biggest pain points for companies:
    • Improving the efficiency of existing processes
    • Development of new, digital business models and services
  • Attention:
    • There is the need to to change their business models not only to digitalize their business processes.
    • In addition customer and partner relationships need a more flexible handling.
  • Platform strategy becomes more and more important (integration, new business models etc.)
    • Future is still hybrid
    • Good news for Microsoft: SAP and Microsoft are the relevant providers for digitalization of core processes (not operating models!)
    • SAP strength of core processes (like FI) is undoubted
  • Trust in product strategy:
    • Increased, but level is still low.
    • This is an issue as reputation is one of the key criteria for deciding for or against a vendor.

myPoV:

  • As usual interesting insights based on DSAG survey
  • 2021 will be interesting regarding the different conflicting constraints in enterprises
  • Great to see that Microsoft is unchanged number 2 when it comes to relevant PaaS platforms for DSAG members

Keynote "Digitaler Weckruf: Herausforderungen von heute bewältigen, Chancen von morgen nutzen" (Christian Klein - SAP)

  • What became clear in crisis:
    • Digital business models will last also after crises
    • Trust and sustainability are two key ingredients for those models
  • Problem of enterprises
    • Data resides in silos
    • End2End digitalization becomes difficult with silos (like e-commerce and digital supply chain)
    • Lift&Shift are not sufficient (myPoV: I felt a bit of a dig at hyperscalers here)
  • Target of SAP: Modular landscape/solutions
    • Core plus industry-specific add-ons aka industry cloud targeting differentiating processes in the different industries
    • Industry cloud is place for partners + co-innovation together with customers
  • Cloud first but not cloud only (myPoV: SAP has listened, but how does industry cloud fit into the picture)
  • Focus topics:
    • Integration (avoid data silos)
    • Semantic data model across all solutions (ODM)
    • Security
    • Low code and no-code solutions (myPoV: okay ... that surprised me, I hope the partner with different players)
  • Redesign of business processes is key (in sync with DSAG statement) and SAP delivers best practices
  • AI must be integrated in business processes (myPoV: I think there is a bit of a gap to where customers stand and this goal)
  • Project run times must be shorter, technical tool support needed

myPoV: Industry Cloud was mentioned very often, this seems to be a thing. The other points are exactly the ones addressed by DSAG. And (perhaps it is only me) the customer testimonials shown are not really bringing things forward

Discussion - DSAG and SAP

  • The following points were stressed again:
    • Necessity of integration
    • SAP's key asset are business processes
    • Importance of the industry cloud and co-innovation
  • Only increasing efficiency is not enough and might lead to silos/isolation and breaks in processes. This is why networks are becoming more and more important (myPoV: this is an important point, you must take into account the overall picture when making things more efficient)
  • AI in one process is not a real gain. AI must be applied across process boundaries (e. g. in supply chains)

Day 2

Keynote "Finance und Value Chain: Nachhaltige Zukunft schon heute?" (R. Peters - DSAG, T. Saueressig - SAP)

  • Basic statement: Innovation without adding value is worthless
  • Mantra of day 1 was picked up
    • Cloud first, but not cloud only
    • Digitalization is an end2end story
    • New business models are necessary like "xyz as a service" (myPoV: Bit of a surprise that "consumption-based billing" was stressed that much ... )
  • Innovations by SAP are Business Innovations
  • Mobile enabling was stressed (beta program for native mobile support in SAP S/4HANA)
  • Industry Cloud (myPoV: picking up message of day 1)
  • Another big topic: Sustainability
    • Sustainability must be part of enterprises' KPIs
    • Holistic and deep integration into business processes and data models,
    • Climate 21 Initiative (Link)
  • Cloud is an enabler but SAP does not make it too easy e.g.
    • "Double licencing" S/4HANA Cloud and OnPrem
    • Missing migration tools as we all come from on-prem
  • Localization (esp. legal requirements) is a key asset of SAP
  • Positive feedback by DSAG on new roadmaps and influencing (myPoV: the later is debateable, Ariba etc. might now be part, but transparency is not given)
    • Gap: Connection between roadmaps and influencing programs

myPoV:

  • Sustainability is a key topic and it is good to see that SAP picks that up.
  • SAP is focusing on business and adding value there. This is highly appreciated

Keynote "Klare Aussichten schaffen: Cloud-Strategien für SAP-Kunden" (S. Pietsch - DSAG, J. Müller - SAP)

  • Key pillars of cloud
    • Scalability
    • Flexibility
    • Innovations (and delivering them fast)
    • Example: MS Teams during COVID-19 pandemic (link)
  • "Cloud: yes or no" is no longer the point, the answer is yes, but confusion in the land of cloud. High need for information
  • Obstacles for Enterprises
    • Security and Shared Responsibility: Cloud security problems will be on customer site (myPoV: here we go, security by default and zero trust)
    • Data Security: complex topic with tons of influencing factors
    • Flip side of elasticity are costs. Governance and cost control is needed right from the start
  • SAP and Cloud Computing
    • Cloud first, but not cloud only (simply not applicable for every company)
    • Harmonization from a technical and semantic perspective for APIs and data models
    • Trust: Cloud also means a different degree of dependency on the cloud vendor
  • SAP makes it clear that the Business Technology Platform is the central pillar
    • "Integration of SAP products will be as easy as never before"
  • Integration
    • Roadmap is publicly available (wave 1 should be nearly done at end of 2020, wave 2 is in preparation)
    • S/4HANA on prem APIs are now part of the API Business Hub
    • SAP Graph now has a sandbox (not for on prem)
  • Master Data
    • One Data Model - ODM (myPOV: I am quite skeptical about that, looking at the interface of SAP Graph APIs vs. DDD)
    • Master Data Integration Service
    • Many gaps with respect to business partner (CVI) - SAP is working on it
  • Extending on prem with the cloud:
    • Obstacles should be as low as possible
    • Working on integration roadmaps
  • Nice side note: Steffen Pietsch (DSAG-Fachvorstand Technologie) introduction to cloud terms: Cloud 101

myPoV:

  • SAP is working on the topics and make progress but they are not there yet
  • It seems to be quite hard for SAP to accept the hybrid reality of customers.
  • All demos have been SAP S/4HANA Cloud, if hybrid is understood, why no demos with a hybrid scenario

Discussion - DSAG and SAP

  • Cloud is not only SAP - there are more player and Hyperscalers do not only act as IaaS providers (myPoV: just true, seems hard for SAP to find their spot)
  • Best of Breed is a matter of fact and PaaS is not SAP alone (see also DSAG survey)
  • Kudos to Steffen Pietsch: he addressed the Free Tier topic!
    • News (around SAP TechEd): Time limitation will be lifted/extended + free tiering will come
  • Integration is a key topic and was stressed again, esp. in hybrid scenarios
    • Article by Juergen Mueller on hybrid integration: Link
  • Topic of sustainability was stressed again

myPoV:

  • Keynote of Steffen Pietsch addressed the right points
  • I hope SAP will make fast progress with the on prem-cloud integration topics
  • I do not like the side remarks concerning "when dealing with SAP data use SAP technology". Customers will not buy into SAP exclusively. I hope I am listening too critically here.
  • I hope the sustainability topic will also arrive in the mindsets of customers and partners

The other days ...

Day 3 "Digitale Transformation „einfach machen“? Einfach machen!" (A. Oczko - DSAG)

  • Licencing is a big topic
  • Digitalization is closely linked to easy access to resources to try them out and explore
  • SAP is on the right track but further improvement is necessary like digital access - it is a continuos process
  • Extension of maintenance for ERP also means a valid roadmap for that time (myPoV: Fair point)
  • "Announcement" by SAP: offering for a system conversion to S/4HANA Cloud (managed offering) is in the making (myPoV: interesting ...)

myPoV: I think SAP underestimates the hurdles that need to be overcome to explore SAP offerings in a reasonable and sustainable (= from exploration to "production") manner. This can become a problem on the long run.

Day 4 "Experience Economy"

  • It was a bit quiet in the area of CX, but SAP is committed to the area of CX
  • Core requests by DSAG:
    • Integration
    • User Experience
    • Reliability
  • DSAG Perception: Functional gaps are being closed (e.g. acquisition of Emarsys)
  • Customer Data Platform (CDP) was launched (Link) based in SAP Customer Data Cloud (former Gigya)

myPOV:

  • Talk by Bob Stutz: "Reach out to me if you have any questions?" - nice, different than just saying "we listen"
  • From the talk by Ralf Strauß (not only true fpr CX projects):
    • Question: How to deliver successful projects?
    • Answer: No staffing by availability and bringing senior project leads in

Day 4 "Ein Jahr Embrace - Beispiele aus der SAP und Microsoft Partnerschaft" (Holger Bruchelt - Microsoft)

  • Spotlight on the general touch points with SAP
    • Sustainability: Climate21 (SAP) - Azure Energy Sustainability (Microsoft - Link)
    • Go Local (More regions, being near the customer, important for data security)
    • Hybrid is reality (Microsoft comes from on prem and understood hybrid)
  • SAP Embrace
    • Interest of customer and partners is high (myPOV: was underlined by DSAG survey)
    • The reference architectures are not made in the ivory tower, but together with customers, partners and SAP to solve real problems in real word setups like AD (not AAD) connection from SuccessFactors (myPOV: highly appreciated)
    • Incubation by the community (like tooling etc.)

myPoV: If you have the chance to watch the recording - do it. Not because you will hear something ground-breaking new, but because you see an enthusiastic speaker who obviously loves what he does

Day 5 Keynote "Personalwesen 2020: Rückblick, Erfolge, Zukunft" (Herrmann-Josef Haag - DSAG)

  • How to get talents?
    • Flexible work time is important (including work from home)
    • Flexible times for home office
    • Chance to decide what to do from home
  • Influencing by DSAG
    • HCM + Travel Management is integrated/available in S/4HANA on prem
    • Availability of SuccessFactors became better
  • Data Security: Whitepaper on cloud solutions in Public sector
  • Integration:
    • Hybrid is key
    • End2End processes, focus on workflow of employees not on solutions
  • SAP delivers legal changes fast (Covid-19) - key asset as mentioned on day 1 and 2
  • "Usual" obstacles:
    • Licencing of new solutions and transfer of existing contracts
    • "Migration" to HCM on S/4HANA
  • Industry Cloud means Cloud-only - open questions in different industries

myPOV: Good finish of the week, clear red line of DSAG's topics. Always interesting to see things from differnet perspectives and for me HCM is always a special one :-)

Day 5 "Die Top-Themen der SAP für 2021: Die Evolution des intelligenten Unternehmens​"(Jan Gilg & Alexander Kläger - SAP SE)

  • "Usual" S/4HANA USPs
  • Future of S/4HANA: from a monolith to a modular suite of LoB capabilities including innovative solutions (myPoV: there is no on prem in the modular suite according to SAP's icons used in presentation)
  • Target picture: Consume of customers will not be a solution but services along processes
  • 14.600+ S/4HANA customers (myPoV: What are S/4HANA customers? I would be interested in fully productive deployments)
  • Integration of analytics is central topic
  • Extensibility:
    • Clean core was stressed
    • Side-by-Side extensions are not facing the uptake SAP would like/hope for
    • Enabling via further APIs of S/4HANA
  • SAP Industry Cloud: All industries one (cloud) platform (myPoV: Why did SAP not pick up the fair point of hybrid and restrcitions in some industries?)

myPOV:

  • Industry Cloud is pushed forward, this means a modular suite
  • Industry Cloud is a playground for partners
  • Open questions remain towards Industry Cloud (= cloud only vs. hybrid)
  • Presentation of "Clean Core" by SAP is imho not productive and will be misleading. From an architectural perspective a side-by-side extension is not the solution to everything

Summary - MyPoV

  • DSAG as well as SAP had a decent and clear story line over the week
  • DSAG adressed the right points - no surprise as they are a user group
  • Collaboration between DSAG and SAP works (also my personal experience)
  • Industry Cloud is the new thing in the SAP ecosystem - dear partners: Take a closer look
  • Hybrid is reality, SAP sees it, now "walk the talk"
  • Some surprising announcements in the context of S/4HANA were made (Migration to private cloud, highly modular target architeture)
  • SAP and collaboration with hyperscalers: a bit foggy ... many strange side remarks especially in the first two days. I do not like what I interpreted in the remarks - I hope I am wrong
  • Organizational topics and culture have been stressed in some talks - becomesmore and more important

Disclaimer

The podcast as well as the content of the repository represent my opinion and especially does not represent the one of my employer, SAP, Microsoft or DSAG.