Dennis Howlett

SAP Mobility @ Madrid: Is it for SMEs too?

Recently I had the opportunity to speak with  SAP’s Senior VP of Mobile Strategies, Nick Brown to get a preview of the “mobility” announcements planned for SAPPHIRENOW + SAPTechEd, co-located in Madrid this week. As anyone that follows SAP knows, mobility is one of its three hottest topics, the other two being cloud and in-memory computing. Since May 2010 when SAP announced its intended acquisition of Sybase, the mobility buzz has been about an integrated platform and application story.

Mobility for the Masses

SAP’s goal is to bring mobility to the masses. But this means something different to enterprises than it does to consumers. Or does it? I came away from the briefing understanding that at least one of the key objectives for SAP’s mobility strategy was to enable any size company to mobilize. Since I have a lot of interaction with the SME (small to midsize enterprise) teams at SAP, I immediately thought about the impact of these announcements on these smaller companies.

Since the Sybase acquisition, we’ve heard a lot about the Sybase Unwired Platform (SUP). The easiest “hit” for SAP here is with large companies with large IT staffs that worry about managing a large variety of devices. Talking about MEAP (mobile enterprise application platform), MCAP (mobile commerce application platform) and MDM (master data management) resonates here. But to most executive decision-makers that’s just alphabet soup. And those acronyms are even more foreign to decision-makers in your typical SME. They think a lot like consumers. They just want to consume; they don’t have big IT staffs to worry about a “platform.”

What SMEs want

SMEs want ready-to-use applications that address a specific business need. They just assume (rightly or wrongly) that the apps come with the necessarily underlying infrastructure to take advantage of the latest and greatest technology (think 3G and 4G), deliver security and work on any device they might want or need to use. That means they don’t expect to pay extra for it and perhaps they don’t expect to have to “buy” it at all. In fact they don’t necessarily even connect the dots from mobilization back to “IT” and core enterprise applications like ERP, which create the system of record for their business.

My “mobility” research shows that the number one priority for mobilization of tasks or functions is performing approvals and authorizations, followed closely by receiving alerts and notifications. And yet my “ERP” research shows that less than half (47%) of companies rate the ability to access ERP data from a mobile device as “important” or “must have,” 26% said it was “somewhat important”, 22% called it a “nice to have” and 6% said it wasn’t a consideration at all. Taking photos and attaching them to records rated higher than mobile order and account management. And the smaller the company, the less priority they seem to place on accessing ERP through a mobile device. A lot of companies still don’t get the connection between this proactive management and the underlying enterprise data that runs their business.

What must SAP do to address that?

First of all it needs to deliver applications that budget holders see real value in. And those applications are finally starting to flow out of the funnel. SAP is showcasing 50 of them at SAPPHIRENOW in Madrid this week. I went out to the App store earlier this week and counted 45 that are currently available. Twenty of them are free, 11 are from partners. While today there are more SAP-developed apps than partner-developed apps, SAP expects that to change dramatically and ultimately expects 80-90% to come from its ecosystem of partners. There are 200 of them undergoing certification by SAP right now. But partners will only do that as long as they are successful in selling them.

Because of the sheer volume of SMEs (compared to large enterprises), it would seem SMEs would be key to that success. And for SMEs to consume them, they must be affordable. And that means the cost of the platform cannot inflate the price of the apps.

Dennis Howlett (@dahowlett) has been very vocal on this subject. In fact he just published his insights on the mobility announcements in Madrid, including this excerpt:

“I have said before and I repeat here: SAP should give the platform away in most cases. It doesn’t make sense to developers if they have to pay for a platform at high cost. Apple managed to build a highly successful business by making the barriers to developers trivial. SAP is still trying to wean itself on the idea that everything has to come with a Veuve Cliquot price tag.”

So we will have to watch this closely to see how many apps continue to be produced and consumed and ultimately what stance SAP takes on the price of the platform. This will have significant impact on SMEs.

What Else?

How else can SAP educate customers and prospects? Another way is by use case examples. SAP showcased one in particular in Madrid and in its press release. This one was developed specifically for Berlin’s Charité, a big university hospital in Europe. In a way this is not the best way to reach and educate SMEs on the potential for mobilization because this was custom developed and is very specialized to serve physicians and hospitals, not something that helps an SME run its business better. On the other hand, it provides a showcase of an environment that is personally familiar to everyone.

The story is about mobilizing Electronic Medical Records (EMR) so that doctors can access patient information reliably from anywhere. It’s about letting the doctors record notes right in the application during or immediately after examining a patient, so they don’t have to be transcribed later. Everyone can understand it (and its value) because most of us have been patients at one time or another. Not only do we all understand the value of having more and better records and immediate access and the frustration caused by not having that direct access, but we are also quite sensitive to privacy and security when we’re talking about our own personal health records.

Other applications announced in Madrid include:

  • SAP CRM Sales 2.0
  • SAP Field Service 2.0
  • SAP Retail Execution 2.0
  • SAP Citizen Connect
  • SAP Transport Notification & Status
  • SAP Transport Tendering
  • SAP GRC Access Approver
  • SAP GRC Policy Survey
  • SAP Manager Insight (announced in October)
  • SAP Interview Assistant (announced in October)

Also worth noting are the “2.0” designation of the first three apps. The first releases were in June; now we have the second in November, just five months later. This tells us the 12-18 month release cycles are becoming a thing of the past. SAP promises releases to be quarterly in future – something else worth watching out for.

Mobility should be of enormous interest to SMEs. Let’s see if SAP can help them connect the dots to show them how mobile access to enterprise data can help them run better businesses.

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