If Innovation Doesn’t Scale, How Do Vendors Ensure Mass Adoption ?


Few weeks ago, I posted my thoughts on n whether enterprise software companies can scale innovation . I was thrilled to see the quality of debate that this post started – with Thorsten Franz, Michael Bechauf et al jumping in to offer their POVs.

So my next question is – if you cannot come up with innovation after innovation, how do you ensure that the few that have real potential have massive adoption ? Adoption is what makes or breaks software. This is especially true for larger SW companies because they have to make up for the big overheads to remain profitable, keep the lights on existing stuff, and invest in new things. In no particular order, here are a half dozen ideas that come to mind. By no means is this an exhaustive list, but just random thoughts that have been in my mind for some time. Please chime in with your thoughts

1. Evangelize – but more holistically than today

This is easier said than done. Not everyone makes a good evangelist. Evangelists for SW have to cater to different parts of the ecosystem – developers, customers, partners etc. SW evangelists can use some models that seem to work in the world of religion. Evangelists do not preach to the choir – that is just a waste of effort. They are constantly trying to go from place to place and spread the word to people who have not heard the message before. Once people show sufficient interest, the trick is to make sure they don’t change their mind. But the evangelist – who is used to taking extreme stances for good effect on people who need a big leap, are seldom the right people to preach to the already converted. Otherwise, they will run the risk of many of the newly converted ones being put off by their efforts. So there is a need for someone else to take over and keep a steady influence on people who have shown an interest. Compare this to religious groups who meet once a week, and a priest talks to them in a language toned down from the one that evangelists use.

This second part is by and large missing from software evangelism. And I think that is affecting the way adoption is happening, especially with developers. Developers need to be evangelized a few times to get them excited, but if there is no follow up – they will drift away to the messages of the next evangelist.

2. Limit POCs that cannot scale by definition, after the first few are done

When new software comes out, you of course needs a bunch of customers to use it for high impact use cases. And by definition, these POCs are way too specific to be reused elsewhere. There is no way around it – it is a necessary evil in the grand scheme of things. The trick here is to make sure customers don’t look at these as science projects that can shut down the moment vendor team walks out of the door with declarations of victory.

These projects need to be tried out in limited numbers with your most loyal customers. But – set up expectations clearly and for the long term. Agree on what the customer will reasonably need to see for calling the results a success. And then make sure it means – if it is successful, they will take it to production.

This needs some organizational adjustments on vendor side. The black belt warriors who do crazy good POCs seldom have time or inclination to make reference architectures, maintainable code etc. Forcing them to do these will only decrease their efficiency. So I would expect a follow on squad to take up the job of making the project “production quality”, and build as much reuse as possible.

3. Don’t be penny wise, pound foolish – use the ecosystem

Enterprise software companies thrive on ecosystem – so use that to your advantage. No one company can hire enough people to do everything by themselves. There is always a tendency to think that you can make more money by trying to do everything yourself, especially when large amounts of money has been sunk already into products. However, this comes with the risk that adoption will slow down quite a bit. If business is shared with ecosystem partners – you can grow the pie, instead of dividing a small pie into really small chunks. Again – easier said than done. It takes strong sales leadership to take that long term view.

4. Talk where the action is

Existing customers have only so much budget to go around. And existing developers are already fond of you – so they are not running away in a hurry. So – rather than try all the new innovations on the existing base and build up an echo chamber, try to grow the base. This is very very hard – since there is the fear of the unknown. Recruit from places you have never recruited before. Hire consultants from areas you have never hired before. Attract new customers – even if they are only a tiny part of the revenue stream.

5. Software is a game of needs, not a game of wants.

Get better at portfolio management. This is a big problem for enterprise companies – they cling on to everything they ever created. And on top of that – they try to be everything to everyone. When there is only limited budget to go around – why is it that companies try to spread it really thin?

6. If you have money lying around, try financing your customers

Economy is in bad shape. Very few companies want to spend money now – they would rather wait for things to turn for the better before they let go of their purse strings. But if vendors are cash rich – try offering some financing to your customers who have good credit ratings. Not only can you move more product, you will also make some money from interest. Some companies already do it well – but most do not.

Road Ahead for SAP Consultants : 2013


For the last few years, I have tried to offer my views on what is the road ahead for SAP consultants in the next year. All the past episodes have been on SCN, but SCN is not letting me log on to the site today. So I am posting it here this time on my personal blog. My 2012 predictions can be found
here .

Usual disclaimers apply – these are just my personal opinions, and not those of my employer. And of course none of this is based on any scientific study – just my observations dealing with my clients, fellow consultants and many friends in SAP ecosystem.

1. BW on HANA : 2013 will be the year of BW on HANA. The groundwork has been done perfectly well in 2012. This should be good for many consultants – BW, BOBJ, Basis etc to ride the wave. If you are not up to speed on 7.3 version of BW, you might want to get spun up on that. This should also have a positive effect in increasing the demand for BPC 10 upgrades for BPC on HANA.

2. Combo innovations : None of the newer stuff from SAP might give full business value to customers when they stand alone. But they have awesome potential when used in combination. There aren’t a lot of consultants out there who can articulate and implement combination of new technologies ( say HANA and CEP, BPC and Mobility etc) to solve existing problems in completely new ways.

3. Upgrades : Many customers have not made use of cool new functionality offered by Enhancement packs. But I do know first hand – especially from SAPPHIRE and TECHED conversations with customers, that several of them want to start using them in 2013.  This should be good not just for technical experts – but also for functional experts whose knowledge is needed to pick what functionality needs to be switched on.

4. Visual Intelligence :  This needs me to go out on a limb – but everyone whom I have shown the tool has liked it. It is much more user friendly than most other SAP reporting tools. I have a strong hunch that 2013 will see a lot of traction in the market.

5. SuccessFactors + SAP HR : I understand that the integration needs more work – but there is tremendous interest from On premises SAP HR customers to start using SFSF. SAP definitely is doing the right thing in sales and marketing already in 2012 – and customers should be able to start seeing work in this area in 2013.

6. Automated Testing : I have lost count of how many customers have asked me about automated testing for SAP solutions. If you are an expert in testing, 2013 might be a great year for you. Whether it is done using SAP tools, or will third party tools win the race remains to be seen, especially when it comes to automated testing of interfaces.

7. Enterprise Information Management : Data continues to be vitally important at SAP shops. I expect MDG and Data services to be in hot demand in 2013, probably followed by MDM. The big issue I see is that very few consultants have the ability to explain the cost of bad data to business stakeholders. Just profiling data and saying 70% of customer data is bad is not helpful. If you can then use that analysis and say ” 23% of your shipments will be returned” , will get some one’s attention in a hurry.
That is it this time – let me know what you think. And hope everyone had a great thanks giving

SAPPHIRENOW 2012, Madrid – Keynote Expectations


This year, I am not going to Madrid to attend SAPPHIRENOW  and SAPTECHED 2012, due to some scheduling conflicts on work front. I will be following the event online as much as I can. My JD-OD friends will surely do their excellent wrap up videos, and I can’t wait to watch them. Also, a shameless plug for my IBM team at Madrid . Please go visit them at the IBM booth, and ask for Gagan Reen, and watch the retail application we built on HANA, specifically on XS engine.

I am not sure if there is a lot of new news that SAP has to share with the world this time. Not a lot of time has passed after SAPTECHED 2012 in Vegas. I am a big fan of keeping SAPPHIRENOW and SAPTECHED together as one event.  And having events so close to each other serves very little purpose to SAP and its ecosystem. I hope SAP does it in US too – and a change of venue from Orlando and Vegas couldn’t hurt.

I am sure the keynotes from Bill McDermott, Jim Snabe and Vishal Sikka will be awesome, as they usually are. What do I expect from each ?

From Bill McDermott, I expect to hear some color on why an amazing innovation like HANA only has about 650 (probably some more now, since 650 was what we heard in Vegas at Teched) customers. More importantly – what are his plans for 2013 .  APAC is where the action is for a lot of enterprise software. I would love to hear what Bill has to say about unique solutions for APAC companies. Of particular interest to me is what he plans to do to capitalize the mobility market there. It is ripe for the plucking . Checkout what I wrote last week on my way back from India. https://andvijaysays.wordpress.com/2012/11/06/mobility-in-india-reminds-me-of-a-boneym-song-bahama-mama/ 

Maybe Bill will let Sanjay Poonen to do a short section of his keynote to explain the mobility strategy in more detail.  Another thing I expect Bill to go into is the convergence of mobility, hana , analytics and cloud . In past keynotes, he has articulated what each bring to the table. But the business value for customers clearly is in the intersection of all (or some) of it.

From Jim Snabe, I expect to hear the business side of SAP’s cloud story – with emphasis on the Ariba acquisition and Collaboration. I am sure several SAP customers will be excited to hear about how SAP is planning to give them extra value on Ariba’s vast business network. And collaboration plays a key role – since none of SAP’s competitors in collaboration space has the advantage of tight integration to the context of business processes.  An interesting side question to SAP cloud strategy is how SAP’s investment in HANA as the DB for ERP, CRM etc ties with the fact that new innovation in business processes from most of their competitors like SFDC, WorkDay etc are on cloud.  So why is SAP choosing to invest in On-premises HANA enablement, when the world is generally moving to cloud?  I hope Jim addresses that question. If I was in Madrid, I would have asked this in person to Jim.

There is no denying that my favorite part of any SAP event is Vishal’s keynote.  From Vishal, I expect to hear the next level of detail on SAP’s platform story. Platform is the future, and SAP’s platform is evolving rapidly. Maybe he will finally announce the sunset of the beloved Netweaver brand for cloud. What would be a really good thing for Vishal to explain is what is the next thing that the millions of ABAP programmers in the ecosystem to do in near future to keep themselves relevant.  It is a captive audience that is extremely loyal to SAP. It would be a crying shame if they are not shown a clear path forward on skills they need for the new-SAP.

Alright then – I am ready to kick back, and watch the virtual event. Good luck SAP .