Operations in a Networked World SAP / Basel, 20 April 2015 Ruediger Spies, VP Enterprise SW Markets [email protected], +49-171-8218062 © CXP-PAC / RS 2015 Business Environment • Economy generally OK / political risks • Customer expectations growing • Digitization challenges existing Dollar / €uro business models (IoT, Big Data, …) • Talent Management requirements growing (Mobile, Social, Cloud, Analytics) • Security is a key concern • Operational Efficiency Overall: Business as usual with „some new flavor“ 2 © CXP-PAC / RS 2015 Technical Environment CIO Headaches Cloud changes everything: for users & providers & service companies … & Social & Mobile & Big Data … In-memory Computing challenges existing architectures Security reaches highest priority Data volumes exploding Skill management IT is facing (again) major changes. 3 © CXP-PAC / RS 2015 Hot Topics • Drivers for Buz & IT • Complexity & Types of Innovation • What did SAP do? • Skills • What else is coming? The only constant is called CHANGE! 4 © CXP-PAC / RS 2015 Priorities 2015+ Economic challenges for company costs reduction & efficiency 55 control & process transparency 40 reach customers & revenue 73 25 0 20 50 worldwide 45 40 48 smooth & secure IT op's 43 changing customer needs 41 IT professional skill shortage 34 41 60 0 80 % worldwide 64 55 49 36 37 impacts of digitization Switzerland Source: CXP/PAC, 66 63 47 49 economic situation 0 contribution of IT to buz proc cost reduction & eff. in IT… 47 agility & innovation IT challenges for company 50 % 100 Switzerland CxO 1800 Investment Priorities, Dec. 2014 / Jan. 2015 Switzerland cost reduction, innovation, security, contribution 5 © CXP-PAC / RS 2015 Complexity Frontend Complexity BPM ERP HR SS Shops social, mobile Svc Mark- mngt eting BI BA MDM CRM Backend Complexity Multiple DBs Multiple data formats Multiple backups Multiple release cycles Multiple special skills Integration, ETL, DataMarts … • • • • • • SCM Ease of Use has its price … it is backend complexity 6 © CXP-PAC / RS 2015 Types / Ways of Innovation within own organization competency enhancing incremental modular product architectual effectiveness external process efficiency internal radical competency destroying new skill base required go external I N N O V A T I O N • Collaboration user groups • Joint venture co-innovation • Licensing-in buying software, services • Outsourcing often done, seldom successful • Collective research orga e.g., „VCI“, but competition • Spin-off how to get it back? Core question: How to keep the current operation running while doing something different, experimenting, etc. at the same time? 7 Operation with different speeds: slow & stable // fast and innovative © CXP-PAC / RS 2015 Applied to IT: Option 1 • • „speedboats“ • attractive for new talent • fast „on/off“ • no enterprise process • link to backend may be a problem backend • continue w/ experienced team • as little changes as possible • focus on efficiency at backend • increases budget flexibility „+“: easy to implement 8 in house codev. in Cloud spinoff speed-2 = higher systems of engagement core system / system of record in house – speed-1 „-“: transition into production © CXP-PAC / RS 2015 Applied to IT: Option 2 • • backend • outsourced / in the Cloud • easier w/ standard systems • personnel transition? • control of development? „speedboats“ • attractive for new talent • strong architects required • learning / skills in-house • may be slower under enterprise rules • better linked to own brand „+“: all future skills in-house 9 core system / system of record speed-1 – outsourcing / Cloud inhouse codev. spinoff in Cloud speed-2 = higher systems of engagement „-“: dramatical change, disruptive © CXP-PAC / RS 2015 What did SAP do? the game changer • Competitive view: „change the game“ • Backend radical innovation • • • Skills destroying Architectural impact Becomes the “new normal” S/4 and enabling … • … new modular innovation • • • Skills preserving / enhancing Mainly user interface For new “light-weight” processes Best of both worlds using all competencies of classical strategists. 10 © CXP-PAC / RS 2015 What 2do? • new normal Make your homework – learn everything about the new enterprise SW world • Re-think Cloud engagements • 5 cloud questions to ask • What does hybrid mean for us? • What about data security? • Who owns the Cloud DC? • Where is the Cloud DC? • What about the end of the Cloud contract? • Re-assess your current IT architecture • Address fears S4/Hana defines the new normal. For most IT operations it is a disruptive change Work starts now – although SAP tries to conciliate …. 11 © CXP-PAC / RS 2015 Main Challenge: Skills / Re-Skilling / Learning enhance your skills • Remember BSC …. „what are we learning“ • De-emphasize classical data movement, backup, ETL, DataMarts, classical operations database management, … • Invest in architecture skills for hybrid Cloud deployment • Security • Agile / Scrum / mobile Apps development Never stop learning! Reinvent yourself! Apply portfolio management to skills development - formally! 12 © CXP-PAC / RS 2015 What‘s next? SAP business network • In-memory is a done deal • Real Cloud business players … … make money with transactions • Digitization drives “IEI” (inter enterprise integration) … on process and content level • SAP is well prepared • Ariba = Start as procurement network • Other options: automotive network, retail network, medical network, oil&gas exchange, … Think ahead and prepare your buz. colleagues for the next big thing 13 © CXP-PAC / RS 2015 Operations in a Networked World Bottom Line • The drivers have only changed little – but at a core point speed • „Innovate or die“ apply innovation strategy of your enterprise to IT • “2 speed IT” • SAP’s genius trick: change the game • Leader’s requirement: portfolio management for skills • Be prepared for the next major push: Business Networks Business Impact: SAP‘s new offerings are challenging current operations. Those who take this as an opportunity will win. 14 © CXP-PAC / RS 2015 Questions / Comments / Corrections? Many thanks! Ruediger Spies Ind. VP Software Markets Email: [email protected] Phone: +49-171-821.80.62 © PAC 2015 Danke für Ihr Feedback! The Event App can be downloaded for free at the following shops: Nutzen Sie die Chance, ein SAMSUNG Galaxy S6 edge Smart Phone zu gewinnen!! Mitmachen lohnt sich! 16 © CXP-PAC / RS 2015 SAP Forum Basel 2015 - SAP Professionals Day Stream Operations - On Premise – Cloud – Hybrid? Wohin geht die Reise? Raum Singapore 11.00 – 11.45 Uhr Operations in a Networked World – Das SAP CC in einer vernetzten Welt Rüdiger Spies, Ind. VP Enterprise Software Markets, Industry Analyst CXP Group / PAC 12.00 – 12.45 Uhr SAP Betrieb im Spannungsfeld von hybriden Cloud-Szenarien, TCO und Sicherheit Dr. Arndt-Alexander Boehnert, SAP Deutschland SE & Co.KG 15.00 – 15.45 Uhr Geberit setzt weltweit auf SAP HANA: Einblick in Einführung und Betrieb Manfred Bantle Head of SAP Service Center Geberit 16.15 – 17.00 Uhr Cisco – die richtige Architektur für Big Data und Internet of Things Josephine Bruggeman, Cisco Systems, Inc.
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