by Thomas Wieberneit | Feb 13, 2024 | Blog |
The news On February 7 and 8 2024, Zoho held its annual ZohoDay conference, along with a pre-conference get together and an optional visit to SpacX’s not-too-far-away Starbase. Our guide, who went by Chief, and is probably best described as a SpaceX-paparazzi was full of facts and anecdotes, which made the visit very interesting although we couldn’t enter Starbase itself. The event was jam-packed with 125 analysts, 17 customer speakers, and of course Zoho staff for us analysts to talk to. This was a chance we took up eagerly. This time, the event took place in MacAllen, TX, instead of Austin, TX. The reason behind this is once more Zoho’s ruralization strategy, transnational localism. Which gives also one of the main themes of the event. It was more about understanding Zoho than about individual products, although Zoho disclosed some roadmaps. More about understanding Zoho in a second. The second main theme was customer success and testimonials. Instead of bombarding us with presentations ad infinitum, Sandy Lo and her team did an amazing job of organizing a series of panels with customers talking about – and being questioned about – their use of Zoho products. And questioned they were. In what cannot be taken for granted, they gave very candid answers, making a learning opportunity out of the event. The third main theme was the “state of the business” session, as usual presented by Zoho’s Chief Strategy Officer Vijay Sundaram. As Zoho is a privately held business, this information is largely under NDA. So, suffice it to say that Zoho is continuously growing across a variety of metrics including users,...
by Thomas Wieberneit | Jan 25, 2024 | Analysis, Blog |
The News On January 23, 2024, SAP announced the results of its Q4 and fiscal year 2023, along with an update of the company’s 2025 ambition. The ambition includes a shift of focus on key strategic growth areas and a restructuring program. This program will cost around 2.2 billion dollar and affect about 8,000 employees. Notably, SAP does not look at lay-offs but a “voluntary leave program and internal re-skilling investments”. No details are known yet. One of the core investment areas going forward will be Business AI; in addition, the company will strive to capture organizational synergies, leverage AI-driven efficiencies and prepare the company for the expected growth. Looking at the numbers, SAP had a very successful year, meeting or exceeding the outlook metrics set and communicated for 2023. SAP key financial results FY 2023; source SAP According to CEO Christian Klein, the “current cloud backlog increased by 27 percent to reach an all-time high” growth. This number and the cloud revenue are particularly driven by S/4HANA growth. In addition, SAP communicated a bold outlook with a CAGR of 25 percent plus through 2025 and beyond. Wall Street was excited. The Bigger Picture AI is the new cloud, currently the biggest thing since the invention of sliced bread. The industry is at the peak of an AI hype cycle. So far, we have seen a lot of low-hanging fruit being showcased while being promised an age of AI that “changes everything”. According to the recently published results of the PWC annual global CEO surveyhttps://www.pwc.com/us/en/library/ceo-survey.html, around two thirds of CEOs believe that the use of generative AI will improve their company’s products...
by Thomas Wieberneit | Jan 12, 2024 | Analysis, Blog, News |
The news On January 8, 2024, Zendesk announced the acquisition of Klaus, “the industry leading AI-powered quality management platform”. With AI driving a rapid increase in customer service interactions it is necessary for customer service teams to become more efficient while maintaining their quality of service. This is accomplished by a combination of digital and human agents across an increasing number of channels. Ensuring good quality requires a QA solution that is capable of scoring 100 percent of customer interactions, which is what Klaus’s AI is capable of. In doing this, it “pinpoints conversations with positive or negative sentiment, identifies outliers, churn risk, escalations, and necessary follow-ups. According to Zendesk, most QA software does handle only one to two percent of all customer interactions. With workforce enablement management capabilities, Klaus enables the identification of knowledge gaps and coaching opportunities with the goal of improving agent performance and productivity. The result is higher customer satisfaction. According to Martin Kōiva, CEO and founder of Klaus, “Zendesk and Klaus share a vision of Ai-led, personalized CX with businesses fully anticipating and acting on their customers’ needs. QA software plays a critical role in this, ensuring consistency, assessing both human and digital agent performance and providing actionable insights for strategic planning. As part of Zendesk, we will continue to build and deliver thes crucial capabilities, but now at an even greater scale”. The bigger picture Customer service personnel works in a high-pressure environment with lots of turnover; even worse, as frontline workers, they are often the first ones to deal with customers who are already less than amused – equipped with tools that...
by Thomas Wieberneit | Nov 10, 2023 | Analysis, Blog |
The News A lot is going on in the SAPverse during October and the early days of November 2023. First, SAP conducted its CXLive event with CX-related announcements, then the company reported good Q3/2023 figures, a new version of its CX software that includes new generative AI capabilities got released and lastly, it executed its SAP TechEd event with a good number of AI-, BTP-, and ERP related announcements. As this is quite a lot, I covered the CX world in a previous post and will cover the TechEd related news in this post. So, what is new at SAP TechEd? For one, it is enough to fill a 17-page pre-event news guide that SAP sent out. SAP certainly is able to stack up the news for major events. I took the liberty to ask ChatGPT for a summary of the document, which I slightly edited afterwards. Here we are: AI and Development Environments: SAP introduces SAP Build Code with generative AI, improving application development and testing, while new AI capabilities are integrated across SAP’s ecosystem to drive automation. Business Technology Platform (BTP): BTP is augmented with new guides for application deployment and makes the SAP Cloud SDK for Java open source. A new vector capability for managing unstructured data via high-dimensional vectors is announced as part of SAP HANA, enhancing developer productivity, and allowing for Retrieval Augmented Generation (RAG) that combines large language models with business data. SAP Graph is generally available, and now extends API management to offer a unified API for streamlined access to enterprise data, boosting productivity and integration efforts. Cloud ERP: SAP introduces new...
by Thomas Wieberneit | Nov 6, 2023 | Analysis, Blog, News |
The News A lot is going on in the SAPverse during October and the early days of November 2023. First, SAP conducted its CXLive event with CX-related announcements, then the company reported good Q3/2023 figures, a new version of its CX software that includes new generative AI capabilities got released and lastly, it executed its SAP TechEd event with a good number of AI-, BTP-, and ERP related announcements. As this is quite a lot, let me focus on SAP CX in this post. I will cover the TechEd related parts in another post soon. During his keynote to SAP CX Live CEO Christian Klein named CX “a very critical part of SAP’s portfolio. There is no intelligent enterprise without CX”. This got later reaffirmed by Chief Marketing Officer for SAP’s industry and CX solutions, Sven Denecken, who said “SAP is very serious about customer experience. If you heard otherwise, that’s not true”. Why is this important? You’ll find out in the next section. The bigger picture Like every other company, too, SAP has jumped on the generative AI train. For some time now, we are hearing of a lot of announcements and available functionality. This includes an own co-pilot as well as an own foundation model that focuses on business data and business decisions. Focusing on CX, SAP announced the availability of a number of AI driven assistants that cover the whole chain from marketing through service but also lead into fulfillment. With all these, SAP is in tough competition. The company is not perceived as a CX leader, some people even doubt it being serious about CX at all and also question the company’s...
