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Event Report - ADP Meeting of the Minds - Wisely front and center and the rest?

Event Report - ADP Meeting of the Minds - Wisely front and center and the rest?

We had the opportunity to attend ADP yearly user conference  "Meeting of the Minds" (MOTM), held from March 31st till April 3rd, 2019. Attendance with over 1100 attendees, the usual attendance of MOTM, held at the Cosmopolitan in Las Vegas. An ideal location for conferences of this size, given the short distances between venue, rooms and entertainment. 

 


Prefer to watch – here is my event video … (if the video doesn't' show up – check here

 

Here is the 1 slide condensation (if the slide doesn't show up, check here): 

 

Want to read on? Here you go:

Wisely front and center – The keynote only had one single major product pitch (apart from the perennial success story of the ADP mobile app), the new daily pay capabilities that ADP has acquired with Wisely. Business needs and benefits were well explained, and it was clear that ADP wanted all MOTM attendees go back home with a good understanding on what Wisely can do for them, now that it's part of ADP. Let's hope this will help underfinanced and underbanked employees, where there seem to be more than expected these days. 

 
ADP Meeting of the Minds #ADPMOTM Holger Mueller Constellation Research
Politi introduces Wisely

ADP Momentum in Workforce Management In a separate briefing I learnt more about the ADP traction in Workforce Management that is more significant than frankly I expected. While Time and Attendance capabilities are prominent, and larger customer benefit from the partnership of ADP with Kronos, ADP has carved out a very substantial install base for Workforce Management with 70k+ customers who use not only time management, but also clocks and scheduling. With that install base and ADP's R&D commitment, ADP has certainly be counted for as a Workforce Management vendor. 
 
ADP Meeting of the Minds #ADPMOTM Holger Mueller Constellation Research
Thomas with event stats

New Customer Success Program – Customer Success is vital, especially in the cloud age that is catalyzed by the speed of bad news travelling on social media… and ADP has experienced a small but notable attrition over its past. Evidently management does not want to see that anymore, so a new customer success program is in place, with more dedicated customer success personnel in place. Being in the rollout, it's to early to judge success in the market and in regards of customer attrition, but kudos for ADP to address one of the weaknesses in its business that have been around for decades. 
 
ADP Meeting of the Minds #ADPMOTM Holger Mueller Constellation Research
Cambern with ADP Mobile Priogress


New HR Core and Payroll MIA – Surprisingly, after mentioning both new products – ADP's new HR Core product Lifion and ADP's new Payroll (code names 'Pi') as the 2018 edition off MOTM – no mention this year. Usually you see a growth curve in customer communication on new products a user conferences, ADP opted for a different course. We know the products are well on the way in beta and production in different geographies, so the decision is hard to understand. The good news for ADP is, in random conversations with MOTM attendees – they do not seem to miss that. But then – do they know that ADP has a great performance management / team management capability with the TMBC assets? A pretty good gig economy solution with WorkMarket? Not mentioning these capabilities and potentially seeing customer look elsewhere is not productive for ADP.
 
ADP Meeting of the Minds #ADPMOTM Holger Mueller Constellation Research
The ADP AI Philosophy
 

MyPOV

A good user conference for ADP, with happy attendees. Good mixture of product and services vs. entertainment, with a little too much entertainment for my personal taste. Good to see the Wisely acquisition front and center in the keynote and attendees took note. Good to see ADP addressing its 'efficiency' problem in customer retention with the new customer success program. Even 5% (a random number I picked) customer churn can be expensive in the cloud era, so it's good to see ADP addressing this. And ADP keeps the good news under wraps, e.g. it's momentum in Workforce Management. After the briefing I checked with some colleagues, it's totally possible I missed something here, but they were equally surprised. As much as I admire comeback and solid product development, some level of marketing, roadmap, product updates need to happen … before tens of thousands of customers are live on a key business capability.

On the concern side, ADP is to shy to give ADP MOTM attendees the product updates that they deserve. A roller coaster event-based communication strategy like on Lifion and PI does not make sense. The irony is that it usually predicts product issues and delays, and that is not the case for ADP at the moment. When the cat is out of the bag, you need to keep talking about how it is doing, developing etc. One of the big mysteries of my analyst career.

But overall a good event for ADP, customers are happy and look forward to use and adopt new capabilities in the ADP Data Cloud (AI was another push at MOTM) and realize what they can do with Wisely. I guess it's a step at a time and ADP wants to pick the steps customers can and should take.
 
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Event Report: Google Next 2019 - Google puts more arrows in the cloud quiver

Event Report: Google Next 2019 - Google puts more arrows in the cloud quiver

We had the opportunity to attend Google Next 2019, held from April 9th till 11th 2019 at the Moscone Center and adjacent hotels in San Francisco. Attendance with over 30k registrants (my estimate about 20k present, comparing to Dreamforce and Oracle OpenWorld), and a large mix of exhibitors across Moscone South makes Google Next a major player in the cloud conference circuit. What a difference to the initial event held on a San Francisco pier with maybe 1000 attendees at best – in 2016 only three years back. 

 

 

 

Prefer to watch – here is my event video … (if the video doesn't' show up – check here) \

 

Here is the 1 slide condensation (if the slide doesn't show up, check here): 

 
 
 
Want to read on? Here you go:

Digital Transformation and Verticals are added to the leitmotiv – Not surprisingly with Kurian there was the entry of the three-bullet slide – what matters are the new messages and since Google Next, they are Digital Transformation and Verticals. Both not brand new, from an influence perspective Digital Transformation is already a bit 'tired' but to be fair most enterprises have not been digitally transformed. Messaging needs to appeal to the bulk of existing and prospective customers, and this will likely work. Verticals are a new message, but something that the 'As' (how Google refers to Amazon and Azure) have woken up to as well. But Kurian brings a SaaS perspective: When I asked him if Google can win in Verticals without SaaS offerings – he smartly replied with the Media industry as an example where Google can play (and traditional ERP vendors have fallen short, as Kurian knows first hand from Oracle). 
 
 
Google Next 2019 - Holger Mueller - Constellation Research
Kurian with his 3 Google Cloud Differentiators


Google goes multi-cloud with Anthos – Enterprises have not been more worried about cloud lock-in than today. An almost irrational fear in the current day, given that the best cross cloud aka multi-cloud capabilities exist with Kubernetes. But Google is raising the ante on this, by releasing Anthos – a Google supported Kubernetes version across Google, but also Amazon and Azure. Kubernetes having won and gained the support of all major IaaS and the combination of Google being the 'parent' of Kubernetes help here. But we witness the first cloud offering supported by one of the big three vendors on the other's infrastructure. The keynote demos moving a Kubernetes load to / from AWS got its attention. Combined with the GKE on premises capabilities Google now offers the biggest vendor supported range of Kubernetes capabilities. The portability is something enterprises want, but with vendor support 'guaranteeing' the interoperability, we expect the offering to blossom (pun intended, Anthos, Greek, means flower). 
 
 
Google Next 2019 - Holger Mueller - Constellation Research
Google Anthos is GA - 1st Vendor Supported Cross Cloud and on Prem Compute Plane


A new approach to opensource that the enterprise will like - -Google announced a new stance as an IaaS vendor towards popular open source products – by offering them directly, in combination with the vendors and with a unified billing and support. Unified billing is tricky – but can be done. A single number for support is even more challenging and we will have to see how Google and its partners will pull that off. Certainly possible, but definitively what enterprises want. CxOs don't' want to manage the complexity of their next generation applications down to every dependency on the commercial side – and enterprises users want one number to call for support issues. The new stance towards the open source vendors also gives Google a good relationship position vs. e.g. AWS, where vendors are a little more concerned about AWS taking their core offering, improving it (with mixed reviews, depending on who you ask) and then offering it themselves directly. A better relationship to the vendors that enterprises need to power their next generation applications is a smart strategy. 
 
 
Google Next 2019 - Holger Mueller - Constellation Research
New Memory Instance Types (targeting SAP customers 1st and foremost)

Key push across the board – instances, AI, tools, vertical apps – Over 300 enhancements and announcements are impossible to digest, but Google showed its broadest push across the product portfolio. No surprise, Google pushes its AI offerings into more end user friendly tools, raising GSuite sheets to be a BigData Explorer and giving AI tools in the hands of end users. If Google can win here, it can create substantial load for Google Cloud. Plug-ins for developer to build Kubernetes and Serverless (KNative) apps are a smart move to meet developers in their 'living room', the IDE. New memory tuned instances (6 and 12 TB) are tuned to accommodate the largest in memory loads (aka SAP customers). Google is working hard to capture more than a relative share of the SAP load and it is well on the way with that effort. Lastly vertical apps are coming, like e.g. a retail API. It will be interesting how Google will go ahead with these vertical AI apps, without getting into the SaaS field (it has already in HCM with Google Hire). 
 
 
Google Next 2019 - Holger Mueller - Constellation Research
Pichai walks by the liquid cooling TPU Pods
 
 

MyPOV

Very few vendors manage to build up a second technology business. One can argue, that Google's core business, advertisement is not a technology business – but it's technology that powers it. To some degree Google has take the opposite rout of enterprises – that pick cloud technology to become a software company. Google was a software company and had to build cloud technology to power its software. It gives it a unique stance from an offering DNA, compared to Microsoft – who was / is an enterprise software company needing a cloud platform, and to Amazon / AWS – who was / is a e-retailer who needed a cloud as well. The difference is that Google had to build for global and fast coverage, therefore the Google network rules superior across the field of AWS players. And it had to optimize for general scale – of advertisement, of email, of mobile management and for billions of users. In the first phase of Google Cloud, the vendor failed to realize that its value proposition was too different (though attractive) to get the enterprise on board. In the next phase Google tried to address this with bringing in Diane Greene, but to me Google felt like a two dimensional 'mouse trap' – with 'just' great IaaS / PaaS and AI / ML. We are getting in the 3rd phase with Thomas Kurian, were certainly enterprise is going to be addressed. I expect also the Google offerings to show more consistency. Lesser noted at Google Next – but in the press, Kurian addressed that Google was 'outsold' on personnel level side – with only having about 10% of the salesforce headcount than the two 'As'. Kurian knows the sales machine at Oracle well, so I expect him to deliver an improved copy of that sales structure.

On the concern side, it is high time for Google to show some success, if it does not want to remain the 'third cloud' for a long long time. Multi-cloud capabilities, offered by an IaaS player, coupled with on premises run time, a better way to manage and support open source a great first steps, but they must deliver in customer wins and market share. Too early to tell if Google can pull this off.

But overall an impressive event, Google is making steps into the right directions, now it needs to execute. And Kurian is all about execution. Check my 8 point checklist here.



Don't miss my Twitter Moments - below is the Day #1 Keynote and here is the one of the Analyst Day (if they don't show up – check here).
 
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Event Report - Oracle Modern Business Experience - MBX - the Future of Work Takeaways

Event Report - Oracle Modern Business Experience - MBX - the Future of Work Takeaways

 

We had the opportunity to attend Oracle Modern Business Experience (MBX) event, held in Las Vegas from March 18th till 21st at the Mandalay Bay Convention Center. A new event for Oracle, that is combining a number of separate events (e.g. HCM World) into a single event and focusses on ERP, HCM and SCM applications. Accompanied by Oracle Modern Customer Experience (MCX), the event almost felt like an AppsWorld (the event that Oracle rolled into its mega event, Oracle Open World about 10 years ago). For a first event it was well organized and attended, also showing some novel ideas, like a CEO keynote in the afternoon / early evening. But enough about the event, let's look at the HCM / Future of Work key takeaways. 

 

 

 

 

 
Here is the 1 slide condensation (if the slide doesn't show up, check here):
 

 


Want to read on? Here you go:

UX push in a mobile finale – Oracle has been criticized for a long time for a laggard user experience, but the vendor has addressed this well in the last 1.5 years. What remained was a disjointed mobile experience and Oracle tackled it this MBX. Interestingly for the technologists, not with native apps, but a responsive app, that has the same look and feel across the popular Android and iOS platforms. Oracle chose an innovative and confident stance with the new mobile app, creating a mobile challenge for conference attendees as well as analysts. There is an implicit wow effect in being able to launch an application with pointing your phone to a QR code – almost instantly, that still has the rich user experience of a proprietary mobile app. Giving the analysts the app to play with is a sign of confidence by Oracle and maturity in the app. It works well, is responsive even with spotty conference Wifi and provides all key capabilities of the ESS / MSS functional realm as well as the employee and manager exposed part of Talent Management. 

 

 

 

 

Oracle HCM UX

 

 

 

 

 


HCM Experience Studio empowers HR – Rollout times are always a concern for software vendors, and configuration required while an enterprise system is live is often overseen. Functional departments, here HR departments, often struggle with getting systems setup and (re-) configured as needed (and possible). Often key business information gets lost in the process of bringing the technical resources up to speed (or whoever does the configuration work. Oracle attempts to stop that with the HCM Experience Studio – enabling HR professionals to configure and extend their Oracle HCM system. If the product proves itself at scale in practice, it can have a material benefit of going live with Oracle HCM as well as enabling a fast, efficient and low-cost way to keep an Oracle HCM system configured and setup as required and desired by the HR and the business. That will be a substantial contribution to enterprise acceleration, something all CxOs clamor for. 

 

 

 

 

Oracle's Top 10 investment areas in HCM

 

 

 

 

 


Oracle works to become more human – We have said and written before that the biggest detriment for Oracle HCM success is not its product maturity, functionality and usability anymore – but the way how Oracle has reacted in the market with customers and prospects, and the related image of that behavior. In many cases CxOs just don't 'want' to do business with Oracle. It's good to see Oracle has realized and acknowledged that (to some point even publicly) and is now trying to address this with a new, more human centric marketing campaign. The campaign and messaging are well done, but it needs to overcome years of less human and customer centric behavior by Oracle in the market. Not easy, but possible and likely necessary for Oracle to get an adequate or even better than expected return on the massive R&D the vendor has invested into HCM.

 

 

 

 

Oracle's HCM Experience Design Studio

 

 

 

 

 

MyPOV

 

 

 

As always good progress by Oracle, which is adding capabilities en masse to the HCM Cloud, making HCM Cloud one of the most complete and functional rich HCM suites in the market. Having now overcome the usability challenges of the past, Oracle also performs well with vendors. It now has to address 'likeability' a specific wrinkle in the HCM market, where decisions makers value the 'human' side of vendors, their 'people centricity', their Top x of something rank much more than in any enterprise automation area.

The good news is that Oracle is trying to address this, and when Oracle addresses this challenge successfully it will do really, really well in the market. But decades of 'bad buy' image are hard to overcome, but it needs to get started, and Oracle is starting the process. We will be watching.


Want to learn more? Checkout the Twitter Moment below (if it doesn't show up – check here).

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10 Signs You Have a Customer Understanding Deficit and Three Things to Do About It

10 Signs You Have a Customer Understanding Deficit and Three Things to Do About It

We talk a lot these days about the “experience economy” and that fact that any business, regardless of what it sells, is competing on the experience it creates for customers. As a business, you’re shaping those experiences, whether you do so consciously or not.

If that doesn’t strike pangs of fear in the hearts of customer-focused leaders, this should: most companies, especially large ones, face far more fundamental challenges than designing great customer experiences. In all likelihood, your organization doesn’t have a consistent view of who your customers (real or potential) are and why they come to you. Marketing, sales, and customer service may think they do, but it probably isn’t the same view.

Without a shared understanding of customers across the organization, it’s impossible to design consistent experiences—much less the ones you want.

Here are 10 common symptoms of the problem and why it happens:

Three Things To Do About It Right Now

So how do we fix it?

1. Define What It Means to Serve Customers Well in Your Business

The first step is to concentrate on the most important business objective: serving customers. What does that look like for you? What should or could it look like? (Warning: If you don’t buy into the principle that the best way to serve your business is through serving your customers, this blog isn’t for you. And no, I’m not interested in that timeshare.)

To serve your customers well, you need to know them well enough to anticipate their needs. Get it right and you’ll not only have a clear idea of why and when customers are most motivated to buy what you offer, you’ll also know how, when, and where to communicate with them most effectively. Your service will be timely and even preemptive. Your marketing, sales/commerce, and service organizations will work together like a well-oiled machine to build durable, mutually sustainable customer relationships based on great experiences.

With customer understanding at the heart of your business, it’s then possible to build the organizations, processes, and technology infrastructure that power insight-driven experience design (IXD).

2. Think About Your Employees—All Your Employees—Differently

IXD is all about enabling employees with the right tools so that they can create workflows that cross departmental boundaries to support actual customer journeys, not the mythical ones we might like them to follow. It’s also about empowering those same employees with the information they need—in context—at the appropriate moment in time so that they can make the best decisions to serve customers, whether they’re in marketing, sales, service, or any other part of the organization.

The best people to tackle the myriad challenges inherent in serving customers better are the ones directly involved in doing it. That means everyone, regardless of their role or seniority. We have technology tools today that make it possible, now we need to empower employees, give them clear direction on the objectives, and trust them to make the right decisions.

The combination of digital communication, cloud services, APIs, data analytics, AI and machine learning, and low-code/no-code apps makes it possible to design customer experiences that convey the sincerity and relevance of the best in-person interactions in any context or channel. Even so, the best tools in the world will never make it happen without a clear—and very human—understanding of customers.

3. Decide Where To Start

If history has taught us anything, it's that a big-bang approach to major change will likely fail. Establishing the principles of customer understanding and building the capabilities for IXD require a strong vision but an interative process. Where to start depends on the unique circumstances of your organization. How much direct influence do you have personally? Who weilds the greatest influence in your organization, individually or departmentally? Who are the most capable and dynamic leaders? Who has the greatest short-term interest in making the requisite changes?

Cherry-pick your starting points and use cases or customer journeys based on what will generate the best initial results and the greatest interest internally. Build an action plan designed to make the most of opportunistic interest, build momentum, and create a steady rate of change. With the right support and constant, clear communication on the goals, it's easy for people to buy into serving customers better. It not only feels like the right thing to do, it usually is. 

For more on how customer understanding and IXD make it possible to compete and win in the experience economy, read Customer Understanding: The Key to Insight-Driven Experience Design.

 

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Getting Your Weekly Dose of Knowledge Thanks to DisrupTV

Getting Your Weekly Dose of Knowledge Thanks to DisrupTV

Have you checked out our weekly show DisrupTV? We bring together some of the smartest leaders across industries to get their advice and discuss the biggest trends impacting businesses today. With over 300 unique guests and nearly 150 episodes, it’s been a wild ride, and we are not slowing down. Be sure to catch up on episodes you may have missed and check out the upcoming lineups – all listed on our website.

In recent weeks, leadership advice has been a key theme, all from pretty unique perspectives. If you are looking to move up in your career or build a stronger skillset, be sure to check out the full interviews. Here’s the high-level points:

Be creative.
Dickson Tang, Speaker and Author of “Leadership for future of work: 9 ways to build career edge over robots with human creativity,” reminded us that we are all born creative. Unfortunately, traditional schooling sometimes stifles this quality. His advice is to always look for ways to inspire creativity, lead in a positive manner, and give space to make mistakes for the best path for growth.

Focus on Quality.
It’s not about the sheer numbers but the depth of your connections that creates true impact, explained Erica Dhawan, Keynote Speaker on Collaboration & CEO at Cotential. It’s important to network and build teams with quality. Look to combine knowledge, ambition and human capital to exponentially improve. She also reminded us to always be patient, adaptable, and consistent over a long period of time. When your team knows what to expect, they will follow by example.

Continue to learn.
Meagen Eisenberg, Chief Marketing Officer at TripActions and successful startup executive, shared important factors when it comes to scaling a company – people, process and technology. This nicely aligns with important leadership and career growth factors. Always ask questions to fully understand your customers’ wants and needs, for example. If you continue to connect with those actually using your offerings and keep an open mind to learn in the evolving environments, you will be more successful in achieving your end goals in business and personally as a leader.

We’ve also heard some interesting news commentary and healthcare trends this past month. Be sure to check out the interview with Heather Clancy, editorial director at GreenBiz, to learn about the latest in green tech and sustainability. Her interviews never disappoint!

Don't miss your chance to learn from these great leaders each week! Tune in every week for DisrupTV, hosted by Vala Afshar and R “Ray” Wang, on Fridays 11 AM PT/2 PM ET.

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IBM Goes Short on Customer Experience

IBM Goes Short on Customer Experience

On April 4, IBM announced an agreement to sell its portfolio of marketing and commerce software to private investment company Centerbridge Partners. The size of the deal, which is expected to close by mid-2019, was not disclosed.

Mark Simpson, vice president of offering management and strategy for the IBM marketing platform and commerce offerings, will lead the new entity as CEO. The new company’s name, as well as how many and which employees will transfer along with Simpson, are yet to be determined.

The scope of the agreement includes:

  • Campaign Automation
  • Marketing Assistant
  • Media Optimizer
  • Customer Experience Analytics
  • Content Hub
  • Real-Time Personalization
  • Personalized Search
  • Universal Behavior Exchange
  • Intelligent Bidder
  • Price & Promotion Optimization
  • Payments Gateway

Constellation’s View

This announcement comes close on the heels of IBM’s agreement in December 2018 to sell a portfolio of software to HCL for $1.8 billion. It’s clear IBM is actively packaging up discrete capabilities and offerings that it can sell to interested buyers. In our view, this is as much about replenishing the coffers as it is refocusing the main business. Given how hot all things “customer experience” are there days, this particular deal makes sense all around.

Pros:

Because of both its engineering heritage and its size and scale, IBM doesn’t really have a strong brand association with customer experience and marketing tools. This new entity has the opportunity to build a much stronger market presence and reputation around customer experience.

Pulling together this set of marketing and commerce capabilities—some of which are underpinned by IBM Watson’s AI—makes it much easier to manage as a coherent, integrated portfolio. It also helps clarify for customers how these pieces might fit together. Under the terms of the deal, core Watson capabilities and APIs are not in scope (they'll be subject to a partnership agreement) but AI tools developed specifically for marketing products will transfer to the new company.

The combination of products and know-how give the new entity an opportunity to build a better analytics presence that connects strong analytics capabilities to feedback loops that make that output actionable for employees.

For customers, there’s likely to be more, and more focused, investment in helping solve the big problems companies have with building great customer experiences. A single entity that’s wholly focused on tools and technologies to support customer experience doesn’t have to compete with all the rest of IBM for investment dollars.

Cons:

According to what’s been announced so far, this new entity will focus on serving CMOs and marketing organizations. This runs counter to what most enterprise customers want and what most other major competitors in this market are moving toward: connecting marketing technologies with the rest of enterprise IT. Rump IBM has strong ties to the enterprise IT department. The new entity won’t.

It’s unclear what proportion of the new entity’s capabilities will be selling products (including SaaS services) vs. consulting, implementation, and other services. We see a clear trend toward a greater and greater embedding of best practices within products and tools. Nevertheless, the ability to support enterprises in building customer experiences is critical to helping customers succeed. It’s certainly part of what sets IBM apart from other competitors.

Bottom Line

This deal makes sense for IBM and for the new, as-yet unnamed entity that will become a stand-alone company. Its prospects are good, but challenges remain. This is a competitive, rapidly changing market in which critical mass plays a major role in success.

The growing priority for enterprises is to support customer journeys across all parts of the customer lifecycle. It’s about breaking down departmental silos and creating a holistic, enterprise-wide view of customers. Whether and when this new entity figures that out remains to be seen.

For customers, there’s substantial up side. If nothing else, the new company will have a clear focus and investment strategy. And there’s nothing like clarity of purpose to ensure good follow-through.

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News Analysis - SAP keeps re-organizing, Fox-Martin in charge of world-wide sales, Enslin out, replaced by Morgan

News Analysis - SAP keeps re-organizing, Fox-Martin in charge of world-wide sales, Enslin out, replaced by Morgan

Late on a Friday night in Germany SAP issues a press release that Robert Enslin is leaving the company. The organizational consequence was that of Jennifer Morgan taking over the Cloud Business Group, Enslin's previous responsibility. Her go to market activities are no completely with Adaire Fox-Martin – who now solely owns go to market for SAP.

 

 

 

 
The late Friday night release always implies that SAP tried to 'hide' the new around the departure and re-organization ad the board level, especially since it is the 2nd one this year (read about Leukert's departure here). So let's start with dissecting the press release in our customary fashion, it can be found here.
 
WALLDORF — SAP SE (NYSE: SAP) today announced that Executive Board Member and President of the Cloud Business Group Robert Enslin has elected to resign from the company to pursue an external opportunity.
MyPOV - Short and sweet – Enslin looking for an external opportunity. The remarkable part is that he does that after a 27-year career with SAP. Usually that long tenured board members and SAP employees get the chance to retire (contrast and compare with for instance Kleinemeier). The Cloud Business group is in the midst of a transformation to move to the SAP technology stack (and in most cases off Oracle's database), but that effort seems well under way. Enslin got more responsibility during the tenure with the addition of Callidus Cloud in 2018 and recently Qualtrics. So, it needs to be something that has happened more recently to prompt him to look for external opportunities.
 
SAP Executive Board Member Jennifer Morgan will succeed Enslin as president of the Cloud Business Group (CBG). SAP Executive Board Member Adaire Fox-Martin will take sole responsibility of Global Customer Operations (GCO) as president. These leadership changes are effective immediately.
MyPOV - So Morgan is the 'new' Enslin – leaving sole revenue responsibility to Fox-Martin. Well not completely as all six 'sisters' of the Cloud Business Unit have a salesforce and revenue targets. This is taking it to the next level challenge wise for both executives. Fox-Martin must deliver the bulk of SAP's revenue, ironically a job that Enslin had for a long time. And Morgan needs to show she can deliver products to market, as she has not held product development responsibility in her career. Both executives have their work cut out in the next years.
 
Enslin, who first joined SAP in 1992, departs following a long and successful career at the company. He was named to the Executive Board in 2014, initially as president of Global Customer Operations. A respected technology leader with a unique global perspective on business and economic trends, he earned a highly favorable reputation with customers and industry analysts. His two-year stint as president of the company's Cloud Business Group resulted in an aggressive build-out of SAP's cloud portfolio, including the recently closed acquisition of Experience Management leader Qualtrics.
MyPOV - Sad to see such an SAP veteran go – but I guess it was time for the next level. Enslin has delivered sales results during challenging times for SAP, and more recently made sure that 4 of the 6 sisters (Ariba, Fieldglass, hybris and SuccessFactors) are moving to SAP's technology stack – most prominently SAP HANA, SAP Cloud platform and SAP analytics. Interesting that his 27-year retrospective of his SAP career speaks little about the sales success. Enslin emerged as the best sells person for SAP in North America, delivering regular performance and results, culminating in the world-wide sales responsibility. Most recently Enslin's impact is going to be to have moved Fieldglass and most likely SuccessFactors over to SAP's tech stack. Insight on Ariba is still out. Plans for Qualtrics are tbd, given the recent acquisition. Concur is free to leverage 100% AWS (HANA is out there).
 
Comments from Professor Hasso Plattner, Chairman of the Supervisory Board of SAP
"We are very grateful for the many significant contributions Robert Enslin has made to SAP. The Supervisory Board has immense confidence in Jennifer Morgan and Adaire Fox-Martin as they assume broader responsibilities on our Executive Board."
MyPOV - Good quote by Plattner, but what alternatives did SAP have? The alternatives would have been presidents inside of the cloud business unit. But they are all busy at delivering results while their product teams are re-platforming. At the same time, with Enslin leaving, the designate backup for McDermott is out of SAP as well. Time to groom a potential successor. And leading SAP you always need to have some product development responsibility (McDermott is the only exception, so was Apoteker). So, its timely for Morgan to get development responsibility. I wrote the same for new board member Klein earlier this year. Klein and Mueller would have been the other two alternatives, but they just got on the board, and need to show they can deliver first. And maybe mistakenly, SAP always had a business leaders on top of the SAP cloud business unit and each off the six sisters. That the technology transformation to SAP's technology, despite being postulate by Plattner on a yearly level – is not a surprise by now. But hindsight is always easy.
 
Comments from Bill McDermott, CEO of SAP
"Let me first congratulate Rob Enslin for everything he's done in his distinguished SAP career. He'll be a great champion for SAP in his new opportunity and a lifelong friend to me personally. With Jennifer Morgan and Adaire Fox-Martin moving up, we have two dynamic leaders who will help us take SAP to the next level. Our market-leading core ERP and high-growth cloud application portfolio make SAP a rarity in the enterprise software industry. This transition gives us a clear path to continue simplifying the company. SAP's leadership team will drive greater operational efficiency, faster time to market, higher product quality and superior market fit, all while significantly improving margins. 'The Best Run SAP' is our motto, our maxim and our strategy to run the company with greater discipline and focus. I could not be more optimistic about SAP's road map to create value for our customers, employees and shareholders – a true Best-Run SAP."
MyPOV – A long quote by McDermott. Nice to see him thank Enslin and sparking the curiosity where Enslin maybe going. SAP has a lot of partners – so the field is wide open. And agreed that with Fox-Martin solely in charge of almost all sales (the cloud business units sales leaders have a dotted line into her) – SAP certainly simplifies the sales organization and responsibility. Not so much though from a product development side, as the Morgan for Enslin replacement doesn't solve the challenges of a product development troika now between Klein, Morgan and Mueller. It changes the dynamics in the troika as Morgan is less senior than Enslin (who I joked, could have been a father age gap wise to Klein / Mueller). And certainly, the board has gotten much younger, it maybe (math pending) on record low average age – even before Kleinemeier retires.
 
Comments from Robert Enslin
"I am truly grateful to Hasso Plattner, Bill McDermott and all my SAP colleagues for the opportunity to be part of such a special company. As I leave SAP for a new journey, I do so with unrivaled respect for the company and its amazing customers around the world."
MyPOV – Nice quote. Always good to leave on a high note.
 
Comments from Jennifer Morgan
"I am very honored by this opportunity to work with the outstanding team in SAP's Cloud Business Group. I have never been stronger in my belief that SAP's best days are yet to come."
MyPOV – Good quote. Would have loved to see some of the Cloud Business group goals in here. 
 
Comments from Adaire Fox-Martin
"For the entirety of my career at SAP I have focused on our customers and their success. I could not be more energized to continue this exciting journey as president of Global Customer Operations."
MyPOV – Good quote – focus on the customer. Strange though Fox-Martin trails Morgan in sequence. Alphabet can't be used as explanation. At least form an outside perspective and revenue responsibility (not functional diversity) her job eclipses Morgan's.
 
 

Overall MyPOV

SAP's board organization doesn't come to peace, and with that stability that is key for execution. Except for Finance, HR and Services – every board area has been changed, re-organized in the course of 6 months. I can't think of such a board level change happening at SAP … ever. And the next change is already announced, as Kleinemeier stayed an extra year to keep doing the work that Leukert was supposed to take over. Organization need stability on the top, and changes on the top have repercussions many levels down the organization, all the way to middle management changing. In a traditionally stable culture like SAP these changes are especially challenging, as networks have operated over decades, that are now changing. But change can be for the better, so we will have to see what happens.
 
The other aspect is of course SAP's questionable job of succession management. This is not an easy job at board level, and one only needs to think the issues e.g. Apple has had. But SAP needs to benchmark itself with the competition, and there the parallels of loosing Leukert are similar to Oracle losing Kurian, but Oracle absorbed that change much better (for now, blog post coming). If SAP did not have the double leadership in sales, a luxury and complexity, Morgan would not even have been available as a board member. The other potential successor(s) for Enslin had to come from the presidents of the cloud subsidiaries. But none of them made it, and not sure if any was ready for running all 6 sisters at this moment. As a side note: A mini consolidation occurred with moving Fieldglass under Barry Padgett who now runs Ariba and Fieldglass. And apparently no external candidates have been considered. But then SAP has a questionable record of bringing in outside board members, it has tried and failed twice for its people leader before Ries was installed.
So, except for Mucic, Kleinemeier and Ries, everybody has a new job on the SAP board – or is new to the board. The good news is, this board has worked together before. And SAP has reduced sales complexity whit handing the sales keys for (almost) all of SAP sales. One can argue McDermott's job hasn't changed, but I'd argue that he is the product developer in chief (see here), a new role for him.
 
For customers these changes simplify things on the sales side, where Fox-Martin is the last word – before reaching out to McDermott. Things remain as complex on the product side as before, with new relationships with Morgan having to be developed. Her background in sales is likely going to make the first phase of customer interaction easier, the potential challenge will be not to over extend product development commitments.
 
But at the end of the day, it is what it is: SAP's executive board is younger than ever before (or a very long time), and needs to get going asap as the challenges are massive and not getting smaller because SAP is reorganizing: Making the value proposition of the digital core real, getting S/4HANA right, adding new technologies across the products, operating on the new reality of SAP owned integration between its products and moving the six sisters to the SAP technology stack. All while delivering results to shareholder expectations. Time to roll up the sleeves for the SAP board.


[For additional reference checkout my analysis of SAP's last major board reorg, in April 2017, which created the cloud business group - here.]

 

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Progress Report - SAP Cloud Analyst Summit 2019 - Intelligent Suite and Moving to SAP Tech Stack

Progress Report - SAP Cloud Analyst Summit 2019 - Intelligent Suite and Moving to SAP Tech Stack

We had the opportunity to attend the yearly SAP Cloud analyst meeting, held from March 6th till 7th in Salt Lake City. It was co-located with Qualtrics X4 Summit user conference, a good move to get the analysts up to speed on the newest 'sister' (as I call the SAP cloud businesses). Much of the summit was under NDA and we had to go through a reverse factual review – sharing with SAP before we published… then more work happened, and I am belated with this post… but better late … than never. 

 


 

Here is the 1 slide condensation (if the slide doesn't show up, check here):

 

 

Want to read on? Here you go:

The big SAP cloud business re-platform is under way. With this I refer to the effort of moving the 'sisters' to the SAP technology stack, meaning SAP HANA, SAP Cloud Platform, SAP Analytics and Leonardo. That effort is under way and seems to be going well. Fieldglass – the smallest sister – is already on HANA. Work at SuccessFactors and hybris is under way. Not sure where the Ariba efforts stand. As I learnt a week later at Concur's Fusion – the Concur efforts are excused from the effort, going "all in" with Amazon's AWS Cloud. Customers want to know where the effort stands – so SAP is well advised at giving some updates and timelines at some point in the near future.

Concur and Qualtrics - clarity and questions. The Concur decision makes a lot of sense, as likely HANA is punitively high for products like Tripit. And to be fair – HANA was never designed to be a travel expense / travel management database with millions of users. The big question is now what SAP will do with Qualtrics. Let the new experience management acquisition "daughter" run by itself for a while, move it to the SAP stack or maybe also to AWS (where it largely is already)? It was too early to get firm answers of this. But the question is pertinent to make the SAP desire of a new software category with "Experience Management" going – as customers and prospects will want to know what this new software will run on. Personally, I am sceptic HANA can be the database for capturing and continuously querying digital exhaust to predict and create superior experiences. That's more of a Hadoop job. Future will tell.

Reduced functional progress is the price. As with any re-platform – this must be an all hands effort at all the daughters. They almost all picked Oracle and have heavily optimized on that platform. When you do that on Oracle, you write a lot of stored procedures, and those cannot be migrated to another database – also if its HANA. This means that a decade + of code that has been built e.g. at SuccessFactors and Ariba will have to be re-written and tested. If SAP shares the effort publicly it will likely make customers a little nervous and open the install base up for FUD from the competitors. So likely SAP will have to undertake the effort behind closed doors. The consequence is less functional progress for the 'daughter' as developer across the product are busy re-coding and testing functionality. I am not covering Ariba in depth, but SuccessFactors and we can see that slow down on the SuccessFactors side. Pretty much since Spring of 2018 the major piece of innovation coming from SuccessFactors is … a mobile version. Building mobile versions while re-platforming the core offering is a proven strategy for vendors in that phase – mobile is separate technology (especially when you move to HANA) and there are well defined interfaces to the rest of the product. So, it was not a surprise the demo of SuccessFactor's Amy Wilson in Salt Lake City was about – mobile, with SAP Cockpit and the future what Qualtrics can be doing in combination with SuccessFactors for the employee experience. We will see what SAP will share soon.

A new role for SAP technology. SAP has long invested into HANA, SAP Cloud Platform and more. Executives have adamantly insisted that both are strong products, that stand alone and compete with e.g. the Oracle database. That seems to be history now, though SAP has not officially stated it is changing the role of its technology products to focus less on independent, best of breed competition, but making its technology support its application products and ambitions. Certainly, a valid approach, but a lot of investment that will not capitalize. The litmus test question: What is SAP had banked on Oracle only its database – how much SaaS product could have been built? Certainly, more than SAP has been able to build so far. It would have been the reverse takeover of the sisters' decision to standardize on that database. In the past SAP always mentioned the license payments that had to go to Oracle – but SAP does not have a principal issue with it – as we see with its multi-cloud strategy: Here SAP uses the IaaS partners the same way as it uses / used to use its database partners.

But What Ifs are nice scenario plays – it is what it is – and SAP seems to have made that decision. Data points into that direction. It would be good for SAP to make it public.

MyPOV

Let's focus on the good news first: The SAP Intelligent Suite messaging, unveiled at the very first meeting of this group one year ago – is still the true north for S/4HANA, C/4HANA and the sisters. It takes time to build product and keeping the vision and strategy the same is vital for delivering successful enterprise products. I may have missed the plans on the integration side. SAP is creating a distributed system landscape and this time owns the integration between these automation islands. At Sapphire 2018 executives were aware of owning this and committed to it. By now its time to see more specifics on how SAP wants to enable that integration for its customers.

On the concern side, every re-platform is risky business. It must work, must happen likely behind the scenes (as it happens in the cloud world - to not make customers nervous) and means a functional pause for the products undertaking the effort… But the train has left the station, certainly for SuccessFactors, maybe for Ariba, maybe for hybris. The big question now is what the plan for Qualtrics will be. Given SAP's complex development organization (see here) – customers need to plead for transparency by SAP in the form of roadmaps.

But overall kudos for SAP to give insights on its overall state of the cloud products. It was good to see three board members (Enslin, Klein and Mueller) as well as their key lieutenants (e.g. Faerber, Saueressig, Wilson) coming to Salt Lake City to speak with the analysts present there. Now all eyes are on Sapphire.

More on SAP

 

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DisrupTV: Driving Disruption for Real Impact

DisrupTV: Driving Disruption for Real Impact

Autonomous vehicles, 3D printing, value-chain disruption and podcasts. We had a phenomenally entertaining and mind-expanding episode of DisrupTV recently. Here’s the quick takeaways.

Technology Disruptions Taking Over Markets

We caught up with Tasha Keeney, analyst at ARK Invest, to discuss the major headways in autonomous vehicles. There’s substantial cost savings and value promise for these types of taxis, semi-truck long-distance shipping and daily driving without an actual person at the wheel. While we are still a few years off, the work in place to get this going shows the reality will be here before we know it.

Keeney also shared some of her takeaways from her recent interview with Elon Musk, noting that they are three years ahead of the competition, especially for efficiency, battery production and autonomous hardware and data! The traditional automaker industry needs to step up its game by making major business model changes, or it’s predicted that those brands will be out of business with where the market is headed.

She also drove the conversation into what’s happening in 3D printing. While the consumer side has been somewhat disappointing, there are big advancements happening in healthcare and aerospace. Eyewear is a great example. There’s a program where you pick a design, and it will scan your face, tweak it to fit your face, and print it! Talk about true customization and instant gratification. This is just one example, but the opportunities are endless.

Disrupting the Value Chain by Chipping Away at the Competition  

The show switched gears just a bit and caught up with Thales Teixeira, Author & Associate Professor at Harvard Business School, where he discussed findings from his book, titled “Unlocking the Customer Value Chain: How Decoupling Drives Consumer Disruption.”  

The true disruptors aren’t the companies that come out with a similar, slightly better product. The ones that don’t try to copy but look at a missing piece, the inefficiencies, or some small weak aspect of the value chain from that big giant is key.

Let’s look at an example. How do you traditionally buy beauty products? You go into a store, like Sephora, look at all the different products, test them out, ask questions at the store, and then purchase a product. If you like it, you will go back and buy it again. Along the way, there are usually hiccups though, explained Thales. There’s no parking close at the store, customer service agent is rude, out of the product you want, dissatisfaction when you get home and then having to go back to get more...

The true disruptors are chipping away at certain aspects of the buying process and making that piece exemplary. Want samples but hate crowds? Have them ordered to your house! Already love a product, sign up for subscription and avoid the lines. Thinking differently at ways to build an offering is how to make a big dent and impact.

Sex, Drugs, Rock and Roll, and Podcasts

Well, that changed lanes quickly! The show closed out with an interview with Dr. Janice Presser, Founder & CTO at Teamability.com. She shared what’s happening with the "podcast revolution." Podcasts are broadcasted out in a one-way communication. They share interesting topics but aren’t necessarily getting millions of live viewers. We are in the middle of this challenge. How do you speed around the weak piece in the value chain? The true disruption and game-changer will be real engagement. We are team oriented and being able to engage in the conversation during and even after the podcast is completed will truly change the game.

This is just a high-level take on the great advice shared during the show. Please check out the full discussions in the video replay here or the podcast.

Tune in every week for DisrupTV, hosted by Vala Afshar and R “Ray” Wang, on Fridays 11 AM PT/2 PM ET. Drive (or let your car do it) straight toward the end goal and don’t let the pot holes slow you down.

 

 

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#AppleEvent announcement and the potential in #healthcare

#AppleEvent announcement and the potential in #healthcare

Big announcement by Apple with new subscriptions for news, tv, gaming, and a credit card offer that may impact the credit card industry. This can be a great play and set up for the healthcare industry as Apple looks to keep the 1.4B devices users in the ecosystem. The top three areas that healthcare vendors and providers can think about are:

1. Home care health — We can all agree that the future of healthcare will be at a setting that is convenient for the patient and the home is definitely a great option. The TV streaming ecosystem is the perfect platform for telemedicine. For the last few years, I have seen the cable tv providers attempt at a play to provide telehealth to their members but it has not been a core strategy, therefore it did not gain the market traction. Now with the Apple TV ecosystem, the market is ripe for a telehealth vendor or hospital organization to take advantage of the platform to offer healthcare services. Quick virtual consultation, remote patient interaction, and other forms of patient engagement as a strategy for population health is an area to consider to take advantage of the platform.

2. Credit card — Health systems are still catching up to accept apple pay as a mechanism to pay for your healthcare bill. With the apple credit card, health systems can still focus on accepting apple pay. Another offer can be loyalty rewards when you are using the apple credit card. Healthcare organizations focusing on wellness can set up partnerships with a gym membership and grocery store to promote a healthier lifestyle in order to drive down healthcare cost. This partnership can then provide incentives for consumers that use the apple credit card for payment.

3. Gaming — Healthcare has not tapped into the gamification strategy yet. This is a perfect platform to enhance clinical training as well as a platform to engage with the patients. Think pelaton for healthcare where you are promoting a healthy lifestyle.

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