Ringing in a belated New Year with SAP, Oracle, and the CRM Watchlist 2019 – Business Intelligence Info

2020年3月25日 at 下午10:24

Asyouknow,IvealwaysseenSAPasacompanywithahugeamountofpromise。

ItisoneofthesecompaniesthatIvealwaysthoughthad(andhas)realmarketingleadingpotentialforreasonsincludingitslevelofinnovation,thecommitmentofitscustomerbasetothem,itswillingnessinternallytoactuallyadoptprincipalsthat,dependingonwhatcirclesyourunin,canbecalled,co-creationwithcustomers,service-dominantlogicand/orservicedesignandcustomerengagementviacommunitiessuchasSDNandformerSAPerJimGoldfingerscustomercommunity。

Italsohasaverystrongbusinessinfluencerprogramrecognizingnotonlyindependentanalystsbutacademicsandthushashadstrongtiesto,Ithink,around900academics(lastIheard)whoareabletoenhanceandsupporttruethoughtleadershipinitiatives。

Readalso:MicrosoftandSAPbothcommittorunningSAPHANAonAzureinternally

ItisalsooneofthecompaniesthatnotonlyhasmadeapubliccommitmenttobearesponsiblestewardontheEarth,butthatactuallyplacessomemusclebehindit。

IrememberatSapphireafewyearsago,itdevelopedtechnologythatwouldmeasureits(andanyoneelses)carbonfootprint,anditalsoasacompanyputinaseriesofsustainabilitymeasuresthatwouldensureitscommitmenttoasaferenvironment。

Ididntloveitsmessagingarounditalittletoobusinessprofitability-focusedandlessenvironmentallyfriendlybut,hey,itdidthingstoimprovetheenvironmentandtoimprovethebusinessclimateandenvironment,too。

Mostrecently,onJan。

22,2018,SAP,viaBillMcDermott,pledgedatwobillioneurosupportforbusinessinvestmentinFrancetoPrimeMinisterEmmanuelMacron。

Itactuallydoesthingstosupporttheworld,notjusttalk。

Butithasaseriousdownsidethathasbeenaconstant,frustratingbrakeonitsimpactinthemarket。

Toillustrate,in2007,Iwroteapostentitled,SAP,amazing,butyoudneverknowitandthatssad。

Then,in2015,Iwroteapostentitled,SAP,amazeballs,butyoudneverknowitandthatssad。

Themainpointthen(fromthelatterpost)andmypointin2018isthesame:

Backin2007,whenIstillhadimaginationandliteraryskills,IwrotethisblogpostentitledSAP,AmazingButYoudNeverKnowItAndThatsSad。

OtherthanthewordsSAPPHIRE2015andthetiltoftheheadtoamorecontemporarypopexpressionforamazing,theheadlineisthesamein2015。

AmazingorAmazeballs,dependingonwhichyearfrom2007-2015youchoosetoreadthisheadline。

Butyoudneverknowit。

Nordoesanyoneelse。

Whichistrès,trèssad。

Becausethisisacompanywithlimitlessceilingifitcouldjustfigureouthowtobelesssociallyawkward。

Butdespiteallthatunrealizedpotential,itdoesaccomplishalot,perhapsabittooquietly,butstill,therearethingsthatcanbeandaremeaningful。

Asidefromitsenvironmentallyresponsibleandsociallyresponsibleactionsasacompany,ithasalsotriedtopubliclyturntheperceptionofthecompanyaroundandhasbeentryingsince2015。

ThefanfarearounditsdeclarationoftheSAPHybrissimplifiedfrontofficeonSep。

16,2015was,ontheonehand,indicativeofthepowerandimportanceofitsactualpivottothefrontoffice(anditsintegrationwiththebackoffice)。

But,ontheotherhand,itreflecteditsmisstepsinhowitdeclaimstothepublicwithareleasedateinthemiddleofSalesforcesDreamforce2015andthusnorealpressonsomethingofparamountimportancetothecompany。

Itsfanfareviatrumpetssoundingwithtissuepluggingupthehorn。

Nonetheless,from2015on,toitscredit,SAPhasembraceddigitaltransformation,customerengagement,andhasattemptedtorepositionaroundthefrontoffice/backofficeintegrationfromthetechnologysidewithsomeseriouseffortsonUI/UX(Fiori,etc)。

Imnotforgivingitsflawsatall,butIamsayingithasbeensomewhatsuccessfulinitspivotingwhetheryouknowthatwhichis,ofcourse,oneofthebiggestproblemsithasnow。

Itsdownside,gettinginitsownwayviapoormessagingandpoorpresentationofitsmessaging,tendstoundercutitsotherwiseexcellentcapabilitiesasacompany。

Itjustdoesntknowhowtosendthesignalsitneedstotothepublicitserves。

ThatiswhatkillsSAPeverytime。

Itscorporatenarrativeisbrokenandthathurtsit。

Itneedstobefixedin2018forittorealizethepromisethathasbeenbubblingjustunderthesurfaceforyears。

Dontgetmewrong。

SAPisasignificantplayerontheworldstageandanaccomplishedcompany。

So,itshouldntbe,andIhopewontbe,underestimated。

Amongitsmanystrengthsstrongchannel,strongdevelopernetwork,internallyoftenbrilliantinnovations,someproductslikeJambeingthebestinclass,someverysmartpeople,andanoutlookthatdrivescustomer-companypartnershipsithasoneotherstrengththatoftengetsoverlooked:Ithasawell-thoughtout,highlyintelligentacquisitionstrategy。

Whenitboilsdowntoit,ithasmadeamongthesmartestmovesitcouldhavewithmajorandsomeofitsminoracquisitionsovertheyears。

ThesearethemajoracquisitionsSAPmadeinthelastdecade(includingtheintenttoacquireCallidusCloudasofJan。

30for$2。

4billion)。

ImgoingtoelaborateonCallidusCloudabitwhenIgettothem。

BusinessObjects(2007)($6。

78billion):Arguably(Iguessitcouldbearguable,but,atleast,Ibelievethis)thebestanalyticsplatformintheworldatthetimeofacquisitionandonethatitsmanagedtobuildonandevolvesincethattime。

Successfactors(2011)($3。

4billion):Despitethecloud-basedHRfirmleakingmoneyatthetimeitwasacquired,itcanbearguedthatitdrove(accelerated)SAPstransitiontothecloudandwithoutthatacquisition,itishighlyunlikelythatSAPwouldbeasfarinthatdirectionasitisnow。

Ariba(2012)($4。

3billion):Admittedly,Idonthaveagreathandleonthisone。

Itwasnttrulyinmywheelhouse。

ButIspokewithacoupleofpeopleItrustwhowereinvolvedwiththisandtheirconsensusunequivocallyisthatthiswasagoodone。

Again,Idontdirectlyknow。

Hybris(2013)(estimated$1billion):Ano-brainer。

Thebeste-commerceplatformonthemarketpriortoandpost-acquisition。

Barnone。

Concur(2014)($8。

3billion):Theleaderinexpensemanagement。

Industrialstrength。

Wellrecognized。

Impactonbothfrontandbackoffice。

Still,mighthaveoverpaidforthisone。

Gigya(2017)($350million):1。

2billion(thatwouldbe1/6oftheentireEarthspopulation)verifieddigitalidentities。

Forpurposesofaccuratedata,personalization,and,ofcourse,identitymanagement,thereisnocompanyonEarththatisbettersuitedthanGigya。

IveknownitanditsCEOformanyyears,andthisacquisitionnotonlyfitswellintotheecosystemandplatformstrategythatSAPengenders,butatthesametime,standsonitsownmeritsasasuperbcompanywithagreatproductandmarketleadershipinitsspace。

Abargainattheprice,too。

CallidusCloud(2018)($2。

4billion):Jan。

30,2018intenttoacquireannounced。

CallidusCloudisauniquecompany。

Ihavebeenitsadviserfornearlyfouryearsandhavehadadeeplookatwhatitdoesandhowitworks。

Itsfocusistheend-to-endprocessitcallsLead-to-Money,whichimpliescoreCRMfunctionality(minuscustomerservice)。

TherealityisthatithasnocoreCRMcapabilitybuiltintoitsoffering。

Whatitdoeshaveiswhatitlabelssalesperformancemanagement,butitisreallyaugmentedcapabilitiesforasalesandmarketingecosystem。

Forexample,itofferssalesonboardingviaLitmos(itslearningmanagementsystem),CPQ,salescompensation(e。

g。

commissions)gamification,analytics。

etc。

Also,anumberofsmallerorothercapabilitiessuchasdealerspecificapplications。

Effectively,itfilelstheholesinatraditionalsalesandmarketingecosystem,andwiththestrengthofitse-learningplatform,itcanbranchtoanumberofotherthings。

TheotherthingthatCallidusCloudhasgoingforitisastrongmanagementteamledbyCEOLeslieStretch,ChiefProductOfficerGilesHouse,andpracticejefeslikeEVPRoryCameron,whorunstheLitmosproduct。

ThisisagreatacquisitionbutwouldhavebeenagreatoneifmadebySalesforceorMicrosoftorOracle,too,thoughSAPlikelymakesthebestpartnerforit。

Italsoholdsastrongpositioninthemid-market,andyet,eitheritalreadyscalableor,whereitisnot,hasthearchitecturetobemadescalabletotheenterpriseifneedbeanditwillneedtobe。

Thisworksforbothcompanies,whichis,atleastatthispoint,thebestresultyoucanhopefor。

ThelattertwoacquisitionsGigyainlate2017andCallidusCloudintheworksthisweekmightbetwoofthebestacquisitionsthatanyonemadeanywhereinthepastcoupleofyears。

Italsoshowsthatdespitetheilltimingofthewearecustomercentricannouncementin2015,itisattemptingtoalignitselfwiththeidea。

Thatmeansmovingawayfromitsback-officeheritage(thoughnotdropit)andrepositionasanempathetic,sociallyaware,andcustomer-focusedcompanywiththeecosystemtosupportandenablethat。

Note,Isaidtrying。

AsyoucanguessbywhatIvealreadywritten,itisnotdoneyet。

Readalso:Government-wideSAPdealexpectedtosaveITcoin

Thereareuncertaintiesbutthekindofuncertaintiesthatgiverisetosomehope,too。

Asofthisyear,SAPHybrisalsohasanewpresident,AlexAtzberger,formerlyofSAPAriba,who,whileIhaveyettomeethim,Iveheardgoodthingsaboutsofar。

So,welcome2018。

ThismightbetheyearthatSAPnotonlydoesamazing/amazeballsthings,butactually,finally,youllknowaboutit。

Ihopeso。

Oracle

IneedtostartthispartofmybriefopeningyearreviewofOraclewithyouleavingthesepagesandgoingofftoreadsomethingsomeoneelsewroteaboutOracle。

Youcancomebackafteryoufinishit。

ItwaswrittenbyDiginomicapundit,PhilWainewrightinmid-January,anditisentitled:HowtheXaaSEffectisTransformingOraclesCulture。

Tosummarizethisratherbrilliant,spot-onpiece,PhiloutlinesXaaS,whichiseverythingasaservicesomethingthatIvebeenwatchingforawhile,seeingcompanieslikeOracleprovidinginfrastructure-,platform-,software-as-a-service(IaaS,PaaS,and,ofcourse,SaaS,inthatorder)。

ButwhatPhilsoimportantlyoutlinesisnoneofthatbutthis,andIquote:

ThecommonthemeacrossallthesevarietiesofXaaSisthat,insteadofsimplyshippingaproduct,thevendorisengagedinenablinganoutcomeandthatXaaSeffecthasaprofoundimpactonthewholeorganization。

Readalso:Meltdown-Spectre:OraclescriticalpatchupdateoffersfixesagainstCPUattacks

Ifyourebetween21and45,boom。

Micdrop。

Ifyoureover55,bingo!

Ifyourebetween46and54,Icanthelpyou,sorry。

Butallinall,thisisoneofthemoreimportantrevelationsabouthowtoconductbusinessinthe21stcentury。

Sales,marketing,customerserviceallneedtobeoutcomes-based。

Ifyouareatechvendor,particularly,ifyouarentsellingyourtechthatway,youwillultimatelyfailandImwillingtostandbehindthatasablanketstatement。

Ihavebeenafirmsupporterofthisapproach。

Hereisasneakpeekatacoupleofparagraphs(presumingitmakestheedit)frommynewbookoncustomerengagementdueoutinAugustfromHarvardBusinessPress:

Likeallotherhumanbeings,yourcustomersorprospects,needtoseehowtheproductsandservicesyouprovidearegoingtohelpthemachievetheoutcomesthatarerelevanttothem。

Tothatend,oneofthesmartesteffortsatproductmarketingIveeverseenwasdoneinitsearlierdaysbythesalesoptimizationbusinesssoftwarecompany,LatticeEngines。

Theircustomertestimonialswerentjusthereishowitbenefitedtheircustomercompanies,buttestimonialsfromindividualsonhowtheygotpromotedbecauseoftheirsuccesswithLatticeEngines。

Thesalesapproachmeansshowthecustomerhowitgetstheoutcomesthatbenefitthebusinessandtheindividualbuyer。

Thevalueofoutcomes-basedsellinggoestotheheartofself-interest。

IwanttoknowwhatitisyoucanenablethatgetsmetotheseplacesIneedtobesothatIcanachievemygoalandthus,benefitthecompanyIworkfor。

Butitsnotjustthesalesand/ormarketingpeoplesellingenablementitsproductdesignteamsworkingtocreateaproductthathelpsachievetheoutcome。

Itstheapproachthatservicedesignpeoplecallvalueinuse。

Theoldestclichéarounditisthatyouarentlookingtopurchaseascrewdriver,butyouarelookingtopurchasesomethingthatcanhelpyouputtogetheracabinet。

Thinkaboutit,though。

Ifthatisthecase,itmightneedonekindofscrewdriver,butifyouaretighteningacomputermotherboardscrew,itmightbeanAllenwrenchinsteadofascrewdriver。

Eachofthemsupportsanoutcomethathasadifferentresultanddifferentapproachandthesalesteamandtheproductdevelopmentteamsshouldknowwhatthatprojectedoutcomeissupposedtobetocreatetheappropriateproductsorprovidetheappropriateservicesthatwillsolvetheproblemorenabletheoutcome。

HereshowPhildefinesthatoutcomes-basedtransformationthatOracleisundergoing,basedonanOracleCXanalystsummitpresentationbyEVPDougKehring,chiefofstaffandheadofcorporatedevelopment:

Itstemptingtoimagethatoncethetechnologyisinplace,thejobisdone。

Butthatsjustthestartingpoint。

Thetechnologyfuelsnewengagementmodels,deliverymodelsandbusinessmodels,butthesewontcrystallizeunlessthepeopleandtheorganizationarereadytodeliverthem。

OK,ImgoingtoleaveyoutogoreadtherestofPhilscogentanalysisandhisdescriptionofOraclesself-analysis。

Illtakeitfromthereonceyougetback。

Youbacknow?

Readup?

Good。

Letsproceed。

Oraclehashadanhistoricallydifficultcultureonethathasbeenhardtoworkwithforitsownemployees,customers,analysts,anditspartnersforyears。

Ivehad20yearsofdirectexperiencewiththatdifficultyinvariousroles,withOraclestartingwithoverseeingbuildinganOraclepractice(amongmultiplepracticesIoversawe。

g。

PeopleSoft,SAP,andLotusNotes,etc)tomyworkwiththecompanyasananalystwhowasnttiedtoGartnerandForrester。

Evenwiththosedifficultiesandfrustrations,thereweretwothingsthatOraclehadthatnoonecoulddeny:

First,ithadaverystrong,capable,andversatilegroupinmiddleanduppermiddlemanagement。

Thesearepeoplewhogetthingsdoneanddonewell。

PeoplelikeSteveFioretti,VPofproductmanagementatOracleServiceCloud;LettyLedbetter,(untilherveryrecentdeparture)VPofglobalproductandservicespublicrelationsatOracle;BrianCurran,VPofcustomerexperiencestrategyanddesign,inchargeofitsentirecustomerexperiencestrategyandcustomerjourneyplanningefforts;TaraRoberts,VPofadaptiveintelligencesolutions,whoyoucancounttofinishwhatsheisresponsibleforinatimelyandinvaluableway(e。

g。

shedrovedevelopmentoftheSocialCloud);and,ofcourse,theincrediblyaccomplishedMelissaBoxer,VPofCRMproductmanagementandproductstrategy。

Thus,itsCXportfolio,whichIstillthinkispoorlypositioned,isnonethelessasolid,strongproductportfoliothatcompetedwithanyonesinthemarket。

ItsServiceCloud,MarketingCloudneeEloqua,andthemobilesideofitsSalesCloudarepowerfulofferings。

ItsAIsolutions/products,builtbyMelissaBoxerandmanagedbyJackBerkowitz,VPofproductsanddatascienceatOracleAdaptiveIntelligence,isverydifferentinconceptandapproachthan,say,howSalesforcetreatsArtificialIntelligence(AI)。

SalesforcesEinsteinisalayerofitsplatform。

OraclesAdaptiveIntelligenceapplicationsareinfusionsintoexistingapplicationsorcombinationsthatleadtonewapplicationsbutitisemphaticallynotaplatformlayer。

But,regardlessofdifferentapproach,itsAIsolutionsarethoughtfuladditionstoitsexistingsolutions。

WhileOraclesapproachhasauniquesignature,itscustomer-facingapplicationsaremarketready。

Whilemyevidenceisanecdotal,withPhilspostbeingmostofmycorroborationofatleastOraclebeingawareofitspastculturaltransgressionsandmakingaseriousattempttotransformitsculture,Iamexcitedforthislongoverdueshift。

Itsstrengthsincombinationwiththeself-awarenessandapproachtochangingthecultureshowstomeatleastthatitismakingtheattempttoberelevantandgoodplayersonthebiggerstage。

Thatsaid,Imalsoabitwary,becauseIamlightonevidence。

IcantsaythatIknowenoughtoconfirmwhatDougKehrigsaidabouttheculturaltransformationOracleisundergoingbeingwidespreadacrusadetogainatruefootholdinwhathasbeenotherwiseadifficultenvironmentforyears。

But,ifreal,toOraclescredit,itnotonlyhasadmittedthatithasbeenaculturethatcelebratedandsupportedsayingnoandnowistryingtobeaculturethatasks,HowcanIhelp?

Readalso:Amazon,SalesforcewouldlovetomovefromOracledatabases,muzzleEllison,butcantheysucceed?

IfItakethisatfaceandcombineitwiththepositivesthatOraclehasalwayshad,thepowerfulandhighlycapablepeopleinthemiddlemanagementofthecompany,itmakesmesomewhatoptimisticthat2018willbetheyearthatCXcustomerexperiencewillmeanmorethanabadlypositionedproductportfolio。

Ihonestlywouldlovetoseethishappen。

TherearealotofpeopleatthatcompanyIrespect,anditisacompanythathasclearlymadearealimpactoverdecadesinthebusinessworld,andithashundredsofthousandsofcustomerswhowouldbenothingmorethanthrilledtoseeOraclemoreasaproductivepartnerthanasavendorwithitspurchasedsoftware,andinreturn,gotthesoftwareandbaggage。

Illbemonitoringthismodelandculturaltransformationastheyeargoesonandkeepyouposted。

Now,acoupleofbriefannouncements。

Announcements:

TheCRMWatchlist2019

OnFeb。

7orFeb。

8,IwillbeannouncingthenewlyrevampedCRMWatchlistcriteriaandopeninguptheWatchlistforregistrationthatday。

Pleasenote,therearenotonlynewcriteriaforentering(stillfreeofcharge),buttherearesomerevampedrulesanddatesthatyouhavetobemindfulofrightnow。

Therearesomeon-the-surfacechanges,butthereisalotofchangesunderthecovers,makingavictorymorealignedtotheworldthatwecurrentlylivethanIhadinthepast。

Beaware。

Beveryaware。

Andafraid。

Alittleatleast。

WatchthesepagesonFeb。

7orFeb。

8forthedetails。

The2019EmergenceMaturityIndex(EMIs)

Oneofthebigchangesinthe2019CRMWatchlististhatsmallcompaniesthatwereveryunlikelytohaveanimpactarenolongerpartoftheCRMWatchlist。

Everyyear,about40percentto55percentofthecompaniesthatwouldenterwouldbesosmallandsoyoungthatitschancesofwinningtheCRMWatchlistwouldbeconsideredgenerousatzeropercent。

Theyhadgreatproducts,buttheytypicallywerentdoingwhatyouhadtodotobeacompanythatwouldhaveatruebreakoutimpact。

Onceinawhilethatexisted,butrarely。

Thatsaid,smallcompaniesare,well,evolvingcompanies,andiftheyaregrowingandevolvingbyfleshingouttherightstrategies,programs,identifyingitsmission,clarifyingitsvision,investinginmarketingandsalesopsandcustomerserviceetc。

thenbreakoutsarealwayspossible。

So,youngcompany,staytunedforFeb。

7orFeb。

8,becausethesamedayIannouncetheWatchlistcriteria,IwillbeannouncingthecriteriafortheEmergenceMaturityIndex(EMI)awards(theEMIs)。

ThatmeansthewinnersarethosecompanieswhoIexpectwillbreakoutwithin12monthsofcontest。

Illleaveitatthatfornow,butwhatittakestobepartoftheEMIs(andalsowhattheEMIis)willbeexplainedindetailnextweekaswillthedatesforsubmissionetc。

Ifyouwantaprototypeofwhatitis,readthispostfromlastNovember。

Theressomuchmoretotalkabout。

Staytuned。

Wereinforawildanddifferentkindofridethisyear,thoughnotentirely。

Illjustleaveyouinsuspense。

Previousandrelatedcoverage

Changeagentsarentpersonas,theyarehuman

Thisreportisreallyinterestingandpotentiallyveryvaluabletothoseofyouwhohavedigitaltransformationeffortseitherunderwayorarecontemplatingsomeversionofone。

Customerservicedoneright:HowaUnitedAirlinescrewroseaboveanimperfectstorm

ThiswastheimperfectstormofeventswhenitcomestoUnitedAirlines。

Youwontbelieveitwhenyoureadit,butIswearitwastrue。

Butgreatcustomerservicecanbeatanyproblem。

WherestheROIinyourCRM?

Itsintheprocess

CRM,ifimplementedproperly,canbeacompanyscompetitiveedge。

Letsblockads!

(Why?

)

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