thomas.wieberneit@aheadcrm.co.nz
Relevance, reliability, responsibility are key for AI – the SAP way

Relevance, reliability, responsibility are key for AI – the SAP way

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...
How SAP plans to win the CX game

How SAP plans to win the CX game

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...
SAP reports its Q2 2022 – A snap Analysis

SAP reports its Q2 2022 – A snap Analysis

The News On July 21, 2022, SAP reported its numbers for the second quarter 2022 and the first half of the business year 2022. In contrast to the last times, I’d like to cover this in written form, as this one is quite interesting and probably takes a bit longer than 5 to 10 minutes. SAP changed the report structure to reflect the common cloud service terminology. It is reporting IaaS, PaaS and SaaS now. The overall cloud revenues increased by 34 percent, with some tailwind by the current weakness of the Euro. The cloud backlog surpassed € 10 bn for the first time, growing at the same pace. S/4HANA Cloud revenue is up by 84 percent, with the backlog even growing at 100 percent. This revenue growth is consistent across the reporting regions. For the first time, SAP broke out PaaS revenues, which came in at € 389 million, up 49 percent yea over year.  Not surprisingly, the profitability went down, which is attributable to loss of business due to the war in Ukraine and unfavorable conditions for SAP Ventures. The bigger Picture The enterprise cloud market is extremely contested. It is a saturated market that is dominated by few vendors that are able to support important parts of or even the complete business value chain. The challenge facing all these vendors is the necessity to scale down into the mid and lower mid-market. This, however, is a region that is covered by smaller vendors with similar aspirations, e.g., Creatio, Freshworks, Hubspot, Odoo, Pega, ServiceNow, SugarCRM, Zendesk or Zoho, to name but a few.  The big vendors in this Clash...
CRMKonvos – Bob Stutz and Esteban Kolsky of SAP are talking straight

CRMKonvos – Bob Stutz and Esteban Kolsky of SAP are talking straight

In this episode Ralf Korb, Marshall Lager and I had two very special guests: Bob Stutz, president of SAP’s CX group, who shapes the CRM industry for more than 20 years now and Esteban Kolsky, former analyst, both independently and at Gartner. Esteban has deep roots and a passion for customer service processes and now leads the sales and service products at SAP CX.  And then there was a special star, perhaps the youngest guest who we will ever have. Again, and as usual for our CRMKonvos, we did not stick to one hour. Bob and Esteban actually shared their insights for a full 90 minutes, which is something for which we are deeply grateful. We covered a lot of ground starting with how 22 years of experience in the military services can help in the software industry – and not ending with why it took him and his team that long to publish an SAP CX strategy.  You are interested in the state of AI and machine learning? Ask Esteban – or listen to his statements in this episode. Same for what we are doing wrong in customer service for five decades now. And he needs to know, having a service centre background and having covered the service arena for 20 years now in various roles. Did the acquisitions that SAP did in the past years make sense? Why did it take SAP that long to figure out some of the gems in their portfolio? How should pricing look like and why would make this pricing vendors build better software?  Why Emarsys? Where does it fit into the stack – and why?Ever wondered what the real...
SAP throws the CX Glove

SAP throws the CX Glove

It has been an intense 2 weeks. The CX or CRM or however you want to call it market got a serious makeover. After a long time without a tangible strategy, SAP announced a lot of things, starting with the intended acquisition of Emarsys, followed by an announcement about the release of a customer data platform as part of its SAPCXLIVE event, and then it also conducted its SAPCXLIVE online event in an impressive manner. I wouldn’t proclaim it ‘cineastic’, which is the current mot du jour, but still, it felt very much like a trade show, just virtual. And the week before, SAP president of CX Bob Stutz shook the players during an executive roundtable (very good discussion, intense 2:40 hrs) with representatives of the big 5 held by the CRMPlayaz Brent Leary and Paul Greenberg. He openly questioned the enterprise software vendors pricing policies by asking why the industry does not go for a utility bases billing approach – or should I say utilization based billing approach. Maybe it was just a challenge, as SAP applies usage based pricing with the indirect pricing model for its ERP software and intends to offer it for (at least parts of) its CX software. Pre event some pundits, e.g. Bob Evans of Cloudwars and myself, dared a look into the glass ball, interpreting the SAP world differently. What can be said is that any allegations of SAP withdrawing from the CX market, succumbing to the 800-pound gorilla that Salesforce is, should have been wiped out latest after the first few words of SAP CEO Christian Klein’s keynote of SAPCXLIVE. The...