An Ex-SAP dude’s wish list for SAPPHIRENOW 2014


Sapphirenow 2014 is kicking off on Monday – and although I don’t work for SAP or an SAP partner now, I care a lot for the company and its ecosystem and thought I will jot down a short note on my thoughts on what I would love to see unfold.

1. Let the new leadership team have its own identity

Bill McDermott is a well known entity – so although he is now sole CEO with Jim Snabe moving to Supervisory board, I don’t think anyone thinks of him as a “new” leader. If anyone can chart a course for the new SAP, it is Bill. 

Then there is Bernd Leukert. He is very well known inside SAP – but probably not as well known outside SAP. With Vishal leaving SAP abruptly and Bernd moving to Executive board – I saw a lot of commentary along the lines of Bernd being the new Vishal. I think this is a rather unfair expectation to set up. Vishal was a good leader but so is Bernd. But they are very different people . I would love to see Bernd explain HIS vision of how he expects SAP to develop over the next few years. 

2. Project the bench strength

One of the few things SAP could have done better was to give visibility of its bench strength to external world. Its not that SAP doesn’t have bench strength. Rob Enslin, Steve Lucas, Michael Reh, Rodolpho Cardenuto, Bjoern Goerke ….and many others are capable leaders waiting in the wings. Its up to Bill and Bernd to shine the light on their leadership team and I am sure we will see more of it – if not at sapphire, then shortly thereafter. 

3. Embrace channel partnerships

SAP can’t do it alone. SAP became an amazing ERP company because of a significant ecosystem of partners around them. Rodolpho is now in charge of the partner organization, and he works for Bill directly. I would love to see SAP double down on channel up and down its stack . How can I not say that ? – I am a channels dude myself now at MongoDB 🙂 

4. Show product direction that matches the simplification message

Investors and analysts need a message – but partners and  customers need clear product direction. When SAP leaders talk about innovation – they should give clear examples of what is actually getting simplified. Simplification is needed not just in products – it is also needed in how developers, partners and customers do business with SAP. Easy ways to download trials, simplified licensing etc are all good things to announce.

5. Stop charging for UI/UX improvements

Hopefully we will hear about Fiori and/or Personas being free. I am not holding my breath on it – and I am generally NOT a fan of making software free indiscriminately. However in the case of UI/UX – the poor reputation historically cannot be attributed to anyone other than SAP itself. So why charge for it to maintenance paying customers? Make it free and hopefully it drives enough Hana and Suite business to compensate on revenue front. Nothing will cheer user groups more than this announcement, if we get to hear it.

6. Explain what “SAP, the cloud company powered by Hana” really means

It is a great message – but now it is time to explain how this vision is going to be realized. SAP has a very heterogeneous cloud portfolio. Personally, I don’t think it is a bright idea to replatform all the acquired solutions to Hana. Customers who buy SaaS are buying a solution with a certain SLA. They don’t care what it runs on as long as the functionality satisfies their need, and SLA is met. Parts of all these solutions could probably have benefits that Hana can give. So a replatforming effort might be worth for carefully chosen parts of the portfolio. HEC, HCP, BI, BW on Hana, Suite on Hana etc are the ones that definitely directly correlate to “powered by Hana”. SAP needs to clearly explain the roadmap on transition to a full cloud company .

That is the technology message – but being a cloud company also needs a business execution part to be nailed. This is really hard for a company that needs to balance between on premises solutions and cloud solutions. So I am very curious to hear how SAP will lay it out.  

That is it . I wish the very best to SAP – have a great SAPPHIRENOW 2014 !

Entropy and Equilibrium in organizations


My pal Dennis Howlett and I were discussing today morning about what makes a large company resist change. A lot of thoughts ran through my mind and I thought I better write it down . Strangely – my thoughts revolved around laws of physics when I looked for answers . No idea why , but this is roughly how I try to answer the question .

Entropy is a measure of disorder in a system . Generally, higher the entropy – the more energy a system needs to just remain a system . There is very little energy available to do something else . Remember the first law of thermodynamics – there is only a certain amount of energy available to a system . Organizations are like that too – given a certain resource level , there is only so much that can be done .

What a company stands for changes with time . Pre-IPO , there is a great focus on increasing the valuation of the company . Size of the company is small and most of the employees have stock options as their primary compensation (or upside ) . When that unity of purpose is there – everyone has the same goal for the most part . If I work in engineering and my buddy works in sales and all we can hire is one extra person – it is relatively straight forward to figure out which team gets the extra headcount .
Both of us know that if the company gets valued higher – we both will be sufficiently compensated to not worry about who has a bigger team and whose team earned more kudos .

Now let’s say the company went public and we still can hire only one person . Now the company has many goals – revenue , profit , employee morale , net promoter score and a hundred other KPIs . Every team is aligned to a subset of the goals – and only a small number of people (occasionally only the CEO and CFO) are measured on all KPIs . Compensation is now not primarily stock for most employees – it is MBO driven . So entropy kicks into high gear – a lot of energy gets spent in just keeping the company running – by optimizing across different goals . This leaves hardly any energy to do anything to move forward .

That is what makes larger companies resist change in my opinion . I think this is one of the biggest causes for innovator’s dilemma . Someone with low entropy and more energy to spare comes along and wins the market while you are fighting your inner devil (which you created yourself and sustained ) .

Physics – statics and dynamics – uses the concept of equilibrium a lot . Inertia is a big deal – unless an unbalanced external force doesn’t act on it, an object just continues to move like it always had , or will sit dead on its tracks . Organizations display this behavior in spades .

This is why incremental changes don’t always give much impact in many companies – those are easy to balance out . Often times – individuals try to push really hard to make a difference . But force is proportional to mass and acceleration . Individuals have less organizational mass and hence need tremendous acceleration to show impact . On the other hand – establishment has plenty of organizational force and just needs a tiny acceleration to provide the balancing force . So things come back to equilibrium pretty soon . Maybe there is an exception like Steve Jobs where the CEO is the individual forcing the change – but even then, we have seem the world doesn’t have too many who could pull off what Jobs was able to .

I should stop now – I am not even sure if this line of thought is useful . But I did promise my daughter that I will help her organize her toys ( does that count as decreasing entropy?) . So off I go 🙂

Making peace with polymorphism


So India is getting a new prime minister – and he is the leader of BJP, an organization based on Hinduism / Hindutva . Now , what exactly that means gets interpreted differently based on who you ask . But given the overwhelming majority that the party got in parliamentary elections – it looks like vast majority of the population of India is leaning towards a definition along the lines of “one god , many manifestations”.

Concept of god is a complex one – there are religions that explicitly reach there is only one god , and that you are a big time sinner if you don’t agree . The treatment of god in Hinduism is interesting to say the least . The fundamental notion is that there is only one god – but that god could have many forms or manifestations . There are some 33 million gods – or 33 million forms of god – in Hinduism . The followers of these 33 million gods haven’t always agreed on whether it all converges to one central concept of god .

If I understood correctly – a triumvirate of gods (Brahma, Vishnu, Siva for creation , sustaining and destruction of life/world) were at the top of the hierarchy of gods . Entire kingdoms were formed and wiped out in India on the basis of “my god is more powerful than your god ” principle -even though there was a universal umbrella of Hinduism that covered them all .

The interesting thing about polymorphism is that once we step outside the world of religion ( I believe the right word specifically is polytheism) – it is a less contentious topic .

Nature has a lot of examples in animal kingdom – like jaguars which look black and which look spotted . I think the biological way of saying it is “multiple phenotypes within one species that live in the same habitat” . It’s a necessary result of evolution. But the moment we extend evolution to the world of religion – all bets are off . Somehow we can’t seem to take a leap from butterflies and jaguars to our own life .

The other example is programming – specifically object oriented programming . I learned procedural programming before OOP and had to be taken kicking and screaming into the new world . One of the smartest things about OOP is that you can arbitrarily define a base class to suit yourself and derive as many sub classes out of it . Or in terms of interfaces – you can have one interface and many methods . If you think of the concept of god as the base class – it becomes easy to understand that many religions can exist with their own nuances .

In programming, when you don’t like someone else’s definition of class – you can over ride it and define your own class and take it from there . I believe that if we exercise independent thought – we can decide to follow any existing beliefs about god , or create own belief systems . And for those who don’t care for the concept of god – think of some sub classes as ones that take all or partial null values . So atheists , “I am spiritual, but not religious” types et al can all be covered in this approach .

Answers are both within us and around us – whether it is about god or anything us . It’s up to each of us to decide what combination works for us .

OK – I needed to get that out of my system . I feel better already 🙂