Sybase

What SAP’s Technology Announcements Mean to the Businessperson

On April 10,2012 SAP let loose with a barrage of announcements, all focused on development, data base and technology. It was enough to make a business person’s eyes glaze over as their attention turned away to more pressing business matters. So it is perfectly understandable that those business people should ignore SAP’s technology announcements. Sure it is…just the way it is understandable they should ignore the electrical wiring in their homes. After all, it’s behind the wall. They don’t really understand it. They can’t see it or feel it. They hardly even know it’s there. Until the lights or the appliances don’t work. Or until they want to install a hot tub or upgrade their lighting fixtures, and they can’t. Or until fixing problems with the wiring becomes exorbitantly expensive, leading them to believe it would be easier just to rip it all out and start over. Hmm…maybe it isn’t so wise to ignore database and technology after all.

You’re a Business Person. Why Should You Care?

Unless technology is your business, if you are managing a company, or even a division, a department or a group, you aren’t interested in technology for technology’s sake. Technology is only as valuable as the business value it brings. Business value can be measured in cost savings and performance improvements. Value can be derived from the ability to support data-driven decisions that lead to profitable growth, sustainable business and shareholder value. How do improvements in development tools and technology translate into delivering more business value? Let’s take a look at some of the underlying components of SAP’s announcements and answer the question, “Why should you care?”

Performance Counts in Data Management

One of the general announcements from SAP was the unveiling of a unified strategy for real-time data management. That statement itself won’t mean much to the average businessperson. But that’s not unusual. SAP’s management and many of its customer-facing staff often speak in terms that are only really meaningful to other software vendors and technology press and industry analysts. Or they speak in abstract terms leaving business people to figure out how that relates to their businesses and their problems. It is a problem they are attempting to remedy by listening more closely to their customers, but it’s still there.

“Real-time insight that combines our customer demand and marketing promotion with supply chain visibility on a rock-solid enterprise-class data platform is a must in our industry. With SAP HANA, we see tremendous opportunity to dramatically improve our enterprise data warehouse solutions… drastically reducing data latency and improving speed when we can return query results in 45 seconds versus waiting up to 20 minutes for empty results…“

Weijun Zhang, deputy director, Shanghai Volkswagen

The bottom line: SAP intends to become a leader in the database market by leveraging its own development efforts, as well as products and expertise it has acquired. Most of its customers probably don’t care whether it achieves this goal or not. Even those with a distinct preference for doing business with “market leaders” already chose SAP, at least in part because of its leadership in enterprise applications, not databases.

Over the past few years the company has invested a lot in its own in-memory database SAP HANA which is designed for both high speed and high volume. Even mind-numbing volumes of data will no longer present barriers and early benchmarks are producing processing speeds that are not just incrementally faster, but multiple orders of magnitude faster.

But SAP also acquired Sybase, and with Sybase came its own set of data base products. And the prior Business Objects acquisition also included enterprise information management (EIM) capabilities. Acquisitions often provide more cross sell and up sell opportunity for the acquiring company than bundled or embedded value for the customer. But a “unified strategy” means full integration of all these technologies and should eliminate layers of complexity. It should also mean customers will be able to run their existing systems more efficiently while also being able to take advantage of new capabilities and (hopefully) there won’t be a hefty price tag attached.

Ultimately SAP needs to deliver differentiated performance in order to achieve its database leadership goals. And its customers should benefit from added speed, the ability to handle unprecedented volumes of data, including a lot of types of data they might not even be considering today.

Whether You Know it or Not, You Probably Have a Data Problem

Most businesses today suffer from a data problem, yet might not necessarily recognize it as such.  But …

  • If you feel like you are buried under a mountain of data, or
  • If you know the data is there somewhere, but you aren’t sure where to look, or
  • Data is scattered all over the place, or
  • You have plenty of data, just not the right data, or
  • You can see the data but it’s just not in a format you can use, or
  • You lack the discipline to collect and store the data consistently, or
  • You have multiple versions of the same data, or
  • You don’t trust the data you have, or
  • All of the above

…then you have a data problem. You most likely have data in multiple applications, including reference and master data, as well as transactions. And you are starting to see the value in bringing other sources of data to play in decisions. A lot of this will be unstructured data from automated data collection, sensors, the Internet (e.g. Google alerts, news feeds, stock watches, etc.), from social media, captured conversations, etc. etc. etc. There has to be some “magic” that brings this altogether and makes it actually useful, “magic” that saves you time and effort in gathering and processing it for effective decision-making.

That’s the value of a unified strategy for real-time data management.

More and Better Apps

In presenting these new announcements, Steve Lucas, Global Executive Vice President and General Manager, SAP Database and Technology, posed the question, “What good is a new next-generation platform without new apps to take advantage of it?” SAP wants to be a database player, but it has been in the enterprise applications business long enough to realize the applications drive the demand for databases. And in turn, it is business needs that drive the demand for applications. Indeed, SAP’s announcements included an application development play, but a very specific one: mobile application development.

Enabling Mobile Application Development

 

Mobility was also a big factor in the Sybase acquisition, along with its SQL Anywhere product, used for mobile database management. For more than a year now, industry influencers have been hounding SAP to make it easier for communities of mobile application developers to develop apps with its mobility platform. SAP appears to have been listening. The announcements on April 10th included partnerships with Adobe (PhoneGap), Appcelerator and Sencha, as well as the intent to acquire Syclo, a provider of mobile enterprise apps.

For more information on these partnerships please see the full announcement: SAP Drives Openness and Choice for Millions of Mobile App Developers

Without going into detail that the typical business person won’t care about, each of the partnerships bring a little something different to the party, but the overall intent is to provide an open platform that supports third party development environments and tools. The goal is to have millions of developers developing millions of mobile apps. Why so many and why is this good news for business people? Isn’t part of the data problem a proliferation of enterprise applications? Yes and no.

Yes there has been a proliferation of enterprise applications and this proliferation can cause data redundancy that threatens data integrity. Just think how many different applications store data about your customers. Do they all use the same master files? Do you know if two divisions have the same customer? But just because you have multiple applications doesn’t mean the right people have direct access to data needed for decision-making. And therefore, no, even with all these enterprise applications, you still don’t have enough data and enough access.

Let’s face it, most senior management – those making decisions critical to company profitability and growth – don’t have direct access to applications like ERP, CRM or analytics. If you are one of these executives, chances are you rely on subordinates or a surrogate, thinking that is faster or better. You don’t have the cycles to learn/use/directly access solutions.  Part of the problem is that these applications are multi-purpose and multi-function. Perhaps with more intuitive user interfaces today they don’t require a lot of training in terms of navigation, but users do need to understand the structure and the processes involved.

Contrast these general purpose, large scale applications to your typical mobile applications. They are small, easy to download, easy to understand and easy to use. They are designed to perform a single function and solve a specific problem. So if each is focused and purpose-built, you need a lot of them to do everything you need to do.

And of course everyone has a mobile device these days. Interestingly enough, as we become more unwired, we also become more tethered to our work. We are always connected whether we are traveling for work, at our child’s soccer game or even on vacation. So now that we’re connected but remote, it becomes much more of an inconvenience to rely on someone else for access to data when we need to take action or make a decision and move on quickly.

If you also consider the fact that these mobile devices can be addictive then you have created the perfect storm where demand for access to data, the desire to solve a particular problem and the acceleration of application development converge.

The acquisition of Syclo further emphasizes the focus on delivering mobile apps. While Syclo does have its own mobile platform, make no mistake, for SAP this acquisition is all about the applications. Syclo not only brings industry-specific solutions, but also domain expertise in bringing enterprise asset management (EAM), field service, inventory management and approvals and workflow to mobile devices.

For more information on the acquisition please see the full announcement:

SAP to Acquire Syclo, Extends Leadership in Mobilizing the Enterprise

Summary

SAP has stated that its vision for database and technology is to be “the leader in business technology and data management innovation and help its customers to maximize business results with minimal IT landscape disruption.” This should be music to the ears of a businessperson. The key phrases are business results and minimal disruption. While there is so much talk about “disruptive technology” today, it is important to distinguish this from business disruption. A disruptive technology might prompt you to change the way you do things, presumably in a good way. But it should never disrupt your ability to conduct business.

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Infor ION at the Center of Providing Immediate Value to Lawson and Infor Customers

On July 5, 2011 the acquisition of Lawson Software by GGC Software Holdings, Inc. (an affiliate of Golden Gate Capital) and Infor was completed. The next day Infor wasted no time in announcing integration plans for the company and some of the combined company’s products. Neither Infor nor its new CEO, Charles Phillips, is a stranger to acquisitions. Infor itself has executed over 31 acquisitions in its relatively short history. Mr Phillips’ prior stint at Oracle, known in the industry for fast and efficient integration of acquired businesses, has prepared him well for his first acquisition since taking the helm at Infor. These veterans of the world of mergers and acquisitions (M&A) know that it is important to immediately send a strong message to all customers that the future of the products they use is secure and that the merger actually brings them value.

MERGING THE COMPANIES

In a nutshell, Infor has combined Lawson with SoftBrands, Inc., an affiliate company which was acquired back in 2009. This affiliation enables Lawson/SoftBrands and Infor to share and integrate technology and partner on product offerings. Look for joint cross-selling, marketing and distribution arrangements in the near future. This represents a bit of a divergence from past acquisition strategies. Until it acquired Softbrands, Infor had generally executed mergers where the staff was fully integrated and the acquired company’s brand was subsumed by the Infor brand. The last acquisition approaching this size was the acquisition of SSA Global in 2006 and you would be hard pressed to find any reference today to the SSA brand and only insiders might know that certain Infor employees used to be SSA employees. The value in combining Lawson with Softbrands is not entirely clear to me; Infor tells me it was simply a structural move to consolidate affiliates. But preserving the Lawson brand does make sense, at least for now. It sounds much like the approach SAP took (quite successfully) with both Business Objects and Sybase. While Lawson does not have quite the brand equity of either Business Objects or Sybase, it has particular significance to the Lawson installed base. And the Lawson installed base should be a prime sales target for Infor. When (and if) Lawson and Infor deliver on the promise of a fast pace of development and delivery of deeper industry-specific features for key industries (manufacturing, healthcare, distribution, public sector and hospitality), the importance of the distinction between the two brands will fade. While Infor and Lawson’s product portfolio both compete with and complement each other, come to find out, the two companies share a significant base of common customers. Infor maintains that 9% of Lawson’s active customers also use Infor products, and 48% of Lawson’s top revenue customers use at least one Infor application. Although Infor does not specify the threshold for “top revenue,” one would think this is a large enough segment of customers to present cross-sell opportunities.

 PRODUCT INTEGRATION PLANS ANNOUNCED

But for many of the Lawson (and possibly some Infor) customers, this is just background noise. What they really want to hear is what the new affiliation will mean to them in terms of the products they run. That means both continued support and development plans. Anticipating this question, the Infor and Lawson product development teams have already begun integrating applications using Infor ION. ION is a suite of interoperability and management services designed to facilitate and manage data regardless of whether the data is stored on premise or in the cloud and regardless of which application (or software vendor) “owns” it. This has always included both Infor and non-Infor applications, which certainly makes bringing Lawson software into the mix. Current plans targeted for release later this year follow.

LAWSON S3 AND INFOR FMS SUNSYSTEMS ENTERPRISE

This first integration project targets organizations that have now or plan to implement a two-tier financial management strategy. Lawson S3 would sit at corporate headquarters and larger divisions, while Infor FMS SunSystems Enterprise could be used at smaller operations, potentially distributed globally. This configuration would support multiple countries, languages and currencies. A hidden benefit is that it would also allow each distributed operation to upgrade separately, often a forgotten consideration.

LAWSON S3 AND INFOR EAM

This is an interesting approach since Lawson also offers an Enterprise Asset Management (EAM) solution. Yet the Lawson EAM solution is much more firmly anchored in the manufacturing and distribution sectors, which is where M3 and not S3 plays. The City of Greensboro, N.C. is an example of a public sector customer that Infor and Lawson have in common. Indeed, prior anticipatory announcements called out Lawson’s expertise in the healthcare industry, a sector in which Infor has not really penetrated. The thought appears to be to enhance Lawson S3 with Infor’s EAM and bring the integrated solution to large hospitals, in addition to government and other public sectors.

LAWSON HUMAN CAPITAL MANAGEMENT AND INFOR WORKFORCE MANAGEMENT

While Lawson has made a bigger name for itself (than Infor) in terms of Human Capital Management (HCM), Infor’s strength is more along the lines of direct work force management. This integration could add Time & Attendance as a complement, for example to Lawson’s Nurse Scheduling application.

UNDERLYING TECHNOLOGY

So all this makes sense from a feature/functionality standpoint. But what about the underlying architecture? It is quite clear that the integration projects and future technology development will be based on Infor ION. But while Infor has been developing Infor ION and some follow-on products like Infor Workspace (which Infor calls a new “consumer grade user interface designed to revolutionize the experience of doing business using enterprise applications”) Lawson has not been standing still. In fact Lawson just released Lawson Mashup Designer, which shares a lot of similar features and functions with Infor Workspace. First available for M3, Mashup Designer was recently released for S3 (MAy 2011). So the question will be, will the (integrated) S3 product line be enhanced with Mashup Designer or Infor Workspace? Lawson Mashup Designer is based on Lawson Smart Office (LSO), which was released back in March 2008. LSO was meant to be an intuitive, personalized user interface that allows users to directly access Lawson and Microsoft applications and update data pervasively and instantly across the applications. Mashup Designer builds upon LSO and extends beyond the realm of Microsoft. LSO is the foundation for Mashup Designer. And finally, underlying both M3 and S3 is Lawson System Foundation, a middleware layer insulating the Lawson applications from the underlying operating systems and databases. Because ION can be used to connect both Infor and non-Infor solutions, it would appear than LSF does not need to be replaced immediately, but it also doesn’t make a lot of sense for the combined company to maintain two different teams and parallel development efforts to continue to develop both ION and LSF or Lawson Mashup Designer and Infor Workspace. So there are some open questions for Lawson customers that have invested in LSF, LSO and Mashup Designer.

 KEY TAKEAWAYS

From all appearances it would appear that Infor and Lawson combined are on track to deliver value rapidly to customers, albeit some will see direct benefits sooner than others. What’s in it for Infor and Lawson? • Scale. The larger the company the more resources for innovation and development • Happy customers. And happy customers mean cross-sell and upsell opportunities What’s in it for their customers? • Scale. The customers benefit as well from more development resources and more innovation. • Security. While Infor has been a private company and not subject to the scrutiny of Wall Street per se, Lawson has always kept a close eye on profits. Even during the worst of the recession, when revenues dipped, Lawson CEO Harry Debes kept operating margins on the rise. So Infor is not inheriting a financial mess – far from it. • More solution. The immediate integration efforts will extend options from expanded solutions, although it appears that the S3 installed base will benefit more quickly and will be more differentiated from other Infor products. M3 will become one of several ERP solutions for manufacturers, but heavily targets some industries where Infor touches only lightly. M3 could benefit from the cross-fertilization of manufacturing talent throughout Infor.

Time will tell just what this means for the brands, but by the time that is decided, it probably won’t matter that much.

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