Operations in a Networked World SAP / Basel, 20 April 2015 Ruediger Spies, VP Enterprise SW Markets

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1 Operations in a Networked World SAP / Basel, 20 April 2015 Ruediger Spies, VP Enterprise SW Markets

2 Business Environment Economy generally OK / political risks Dollar / uro Customer expectations growing Digitization challenges existing 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

3 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

4 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

5 Priorities Economic challenges for company IT challenges for company costs reduction & efficiency agility & innovation control & process transparency reach customers & revenue economic situation worldwide % 0 50 % 100 Switzerland contribution of IT to buz proc cost reduction & eff. in IT smooth & secure IT op's changing customer needs IT professional skill shortage impacts of digitization worldwide Source: CXP/PAC, CxO 1800 Investment Priorities, Dec / Jan Switzerland Switzerland cost reduction, innovation, security, contribution

6 Frontend Complexity Complexity ERP SCM Multiple DBs Multiple data formats Multiple backups Multiple release cycles Multiple special skills Integration, ETL, DataMarts CRM BPM HR SS Shops Marketing Svc mngt BI BA MDM social, mobile Backend Complexity Ease of Use has its price it is backend complexity 6

7 Types / Ways of Innovation within own organization competency enhancing modular radical incremental architectual competency destroying new skill base required go external product effectiveness external process efficiency internal 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

8 Applied to IT: Option 1 speedboats attractive for new talent fast on/off no enterprise process link to backend may be a problem in house codev. spinoff in Cloud speed-2 = higher systems of engagement backend continue w/ experienced team as little changes as possible focus on efficiency at backend increases budget flexibility core system / system of record in house speed : easy to implement - : transition into production

9 Applied to IT: Option 2 backend outsourced / in the Cloud easier w/ standard systems personnel transition? control of development? core system / system of record speed-1 outsourcing / Cloud speedboats attractive for new talent strong architects required learning / skills in-house may be slower under enterprise rules better linked to own brand inhouse codev. spinoff in Cloud speed-2 = higher systems of engagement 9 + : all future skills in-house - : dramatical change, disruptive

10 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

11 What 2do? 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 new normal S4/Hana defines the new normal. For most IT operations it is a disruptive change 11 Work starts now although SAP tries to conciliate.

12 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

13 What s next? In-memory is a done deal Real Cloud business players make money with transactions SAP business network 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

14 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

15 Questions / Comments / Corrections? Many thanks! Ruediger Spies Ind. VP Software Markets Phone: PAC 2015

16 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

17 SAP Forum Basel SAP Professionals Day Stream Operations - On Premise Cloud Hybrid? Wohin geht die Reise? Raum Singapore 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 Uhr SAP Betrieb im Spannungsfeld von hybriden Cloud-Szenarien, TCO und Sicherheit Dr. Arndt-Alexander Boehnert, SAP Deutschland SE & Co.KG Uhr Geberit setzt weltweit auf SAP HANA: Einblick in Einführung und Betrieb Manfred Bantle Head of SAP Service Center Geberit Uhr Cisco die richtige Architektur für Big Data und Internet of Things Josephine Bruggeman, Cisco Systems, Inc.

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