SAP Simplification: an exciting development

sap run simpleIt’s tough to miss a 3 page, full color spread in the Wall Street Journal. And if you miss it, it slaps you on the head a couple of days later. Dr Hasso Plattner’s conversation with Dennis Howlett provides more clues. Slowly but surely, SAP “Run Simple” is moving from marketing tagline to action.

It’s about time.

My book, SAP Nation, due out middle of December, shows its customers spent over a $ trillion since the recession. This when cloud, mobile and other trends and front office innovation opportunities would suggest a significant slowdown in back office IT investment. The book provides a detailed inventory of inefficiencies that SAP should tackle.

The even more positive development the book profiles is a number of “simplification” efforts at SAP customers. They have not waited for SAP and they are seeing 20, 40, 60% lighter IT budgets and agility and other benefits.  I profile 12 of their strategies – some are consolidating instances, some are changing outsourcers, some are “ring fencing” SAP with clouds etc. The customers I talked to are the “canaries in the coal mine”. These early-movers will inspire other SAP customers to similarly simplify.

Between what SAP does and what its customers do, we should see a nice reduction in the $ 200+ billion a year SAP Nation. That means money for all kinds of new innovation projects – HANA and much else.

How can you not be excited with that?

(Cross-posted @ DealArchitect Full)

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CEO of Deal Architect, a top advisory boutique recognized in The Black Book of Outsourcing, author of a widely praised book on technology enabled innovation, The New Polymath, prolific blogger, writing about technology-enabled innovation at New Florence, New Renaissance and about waste in technology at Deal Architect.  Previously Analyst  at Gartner, Partner with PwC Consulting. Keynoted at many business and technology conferences and has been quoted in the Wall Street Journal, BusinessWeek, The Financial Times, CIO Magazine, and other executive and technology publications.