Transcript LE Review Meeting Q3’2008 Market Unit Overview

FH Südwestfalen
20 Jahre TBW
Der Wirtschaftsingenieur
als Change Agent
Klaus Langenberg
Business Unit Director SAP Norge AS
30.10.2009
Disclaimer
”This presentation is a personal reflection
and only contains my personal views,
thoughts and opinions. It is not endorsed by SAP nor does it
constitute any official communication of SAP”
Warmup
Persönliche Potenzialanalyse!
Welche Aufgabe hat
der Change
Agent?
CV Klaus Langenberg
1990 – 1994
Abschluss als Diplom Wirtschaftsingenieur FH
1993 – 1997
Consultant Itelligence AG
Finanzbuchhaltung/Controlling
Product Costing (MM/PP/FI-CO)
Integration Manager
1997 – 2003
Gründer und Managing Director Itelligence Norge AS
Startup from scratch: Koffer/Telefon
Ausbau auf 30 Mitarbeiter
IPO 1999
CV Klaus Langenberg
2003 – heute
SAP Norge AS
Projektleiter (3 Monate)
Business Unit Director/Country Manager
Field Services
2005
Teilnahme an Top Management Seminar
150 out of 40500 Strategical Management
Program
2007
Teilnahme Top Management Seminar India,
Global Delivery Concepts
Alltime
Aktiv auf Xing, LinkedIn
Der Wirtschaftsingeneur als Change Agent:
1
Ausgangssituation
2
Ziele
3
GAP’s & How we closed them
1: Ausgangssituation
SPM – 2006 Highlights
-
+
 Services Profitability
 Product Profitability
 Field Services Productization
 Maintenance Lost (L4Q)
 ROI References
 Customer Benefits Rating
 Customer Net Promoter Score
 Target Industries with #1 Rank
 Active ISVs
 Partner Net Promoter Score
 Promotions From Top Talent
§
§
Missed Expectations on SW Revenue While Meeting Product Revenue
Operating Margin Exceeded Expectations
 SAP AG 2007 / FSMP / FS Strategic Imperatives & You / Bernd -Michael Rumpf / 0
A job well done – are we really ready for the
future?
Field Services Contribution



We know basically what it takes
to run this business successfully

Performing

Transforming (?)
There are not many in our peer-group with such a performance
and profile

Profitability

Organic growth

Dealing continuously with new
products
Can we continue like this and is it enough?

Contribution to customers and SAP
Past
2008/2009
Future
Significant challenges lie ahead of us
 Flexibility,
 Bridging IT and Business
Consolidation
 Reduced TCO
 Risk mitigation
 100’000 customers
 Business Suite
Customers
 Industrialised
services
 Distributed
Delivery
Service
Market
Financials
SAP
BusinessModel
only 50%
 BPP/eSOA
as new
paradigm
 ERP 2005 as
the basis
 Enlarged
 Restructuring of
Service Providers
Partner
EcoSystem
 Co-Innovation by
Partners
It’s not the IF, it’s the WHEN and HOW STRONG.
Significant challenges lie ahead of us:
Customers
 Flexibility,
 Bridging IT and Business
Consolidation
 Reduced TCO
 Risk mitigation
 100’000 customers
Customers
Financials
It’s not the IF, it’s the WHEN and HOW STRONG.
Customer needs are changing
Extent of Fundamental Change Needed
Over the Next Two Years
Past Level of Success at Managing
Fundamental Change
Very successful
Significant
change
Moderate
change
15%
15%
Successful
22%
No change experience
Little to no success
5%
65%
32%
Little or no
change
13%
33%
Some success
Source: IBM Global Business Services, CEO survey (765 CEOs), FKOM 2007
Managing Relationships
23%
Cost Containment
23%
Business Process Innovation
14%
New Products or Services
10%
New Markets & Channels
10%
Compliance
Mergers & Acquisitions
Source: SAP study
8%
5%
Significant challenges lie ahead of us: SAP
Business Model
 Business Suite
Financials
SAP
BusinessModel
only 50%
 BPP/eSOA
as new
paradigm
 ERP 2005 as
the basis
 Enlarged
Partner
EcoSystem
 Co-Innovation by
Partners
It’s not the IF, it’s the WHEN and HOW STRONG.
SAP’s business process platform generates
new opportunities and challenges
Be frontrunner for new applications
and technology
 Design the way forward
 New solutions, user
groups and platform
 Across and beyond SAP
 End-to-end support
 Different way of working
Significant challenges lie ahead of us: Service
Market
 Industrialised
services
 Distributed
Delivery
Service
Market
Financials
 Restructuring of
Service Providers
It’s not the IF, it’s the WHEN and HOW STRONG.
Changing the fulfillment model
Installations
Availability of standard
Education offerings for
partners/customers
Creation of
partner/
customer
enablement
offerings
Knowledge
Management
Productized
Services
Training of
Service consultants
Productization
Hubs
Participation
inService
testing
activities
Engineering
Global Delivery
Proactive
Feedback
Time
DEVELOPM.
DEVELOPMENT
RAMP-UP
RAMP-UP
GENERAL AVAILABILITY
Significant challenges lie ahead of us
Customers
Service
Market
Financials
Are We Ready?
SAP
BusinessModel
Check
Film mit 28 sekündiger Dauer
Zählen Sie die Anzahl der
Ballwechsel zwischen den
weissen Spielern!
Basketballfilm
12 Pässe?
15 Pässe?
Die Moral der Geschichte
Selective Perception!
Welche Rolle hat der Change
Agent?
Der Wirtschaftsingeneur als Change Agent
1
Ausgangssituation
2
Ziele
3
GAP’s & How we closed them
2: Ziele
 Market
Fit
 Strategic
Fit
 Performance
Fit
Der Wirtschaftsingeneur als Change Agent
1
Ausgangssituation
2
Ziele
3
GAP’s & How we closed them
The Objective is to Balance Contradictory
Pressures
Market
Fit
Performance
Fit
Strategic
Fit
Will Today’s Service Portfolio Deliver on Our
Strategy?
Three areas to test:
1
Market Fit
 Does it address changes happening in the market?
 Does it create sufficient value for our customers?
 Does it differentiate us from competitors?
2
Strategic Fit
 Does it support SAP’s key strategic objectives?
(such as market making for new products, expanded
customer base/SMEs, leveraging partners to improve
value for money and reach)
3
Performance Fit
 Can I continue to meet my budget?
 Can I maintain quality/integrity?
 Does it offer a career path for my people?
Our Portfolio Today?
Products
c.v’s
Dividing Up the Service Portfolio: First Cut
PLANServices
Classic
Implementations
Safeguarding/QA
Education
RUNServices
(IT
Excellence)
Assessing the Structure of Today’s Service
Portfolio



Plan Services

Business process consulting

Business consulting type services

Architectural services/concepts
Classic Implementations

Prime implementation

Subcontracted implementation

Spot consulting (staff augmentation)
Run Services



Safeguarding/quality assurance
Education


IT excellence, SLO, Upgrades
Training, academy, e-learning
Product

Mercury, RWD/Infopack, MaxAttention (AGS), Safeguarding (AGS), CDP, Etc
Alternative/Additional Ways of Looking at Our
Portfolio



Software

Mercury

RWD/Infopack

CDP
Projects

Programme and project management

Quality and risk management
Expertise/Spot

Solution and architectural design

Various types of spot consulting

Business and IT strategy consulting

IT Excellence


SLO, Upgrade, etc
Education

Training, academy, e-learning
What Are The Most Important Market
Pressures hitting Your Business?
Changes in Products/
Technologies
Opportunities/Challenges
Responses
Changes in Partner
Behaviour
Opportunities/Challenges
Changes in Customer
Behaviour
The
Squeeze!
Responses
Opportunities/Challenges
Responses
Changes Among
Competitors
Opportunities/Challenges
Responses
For example:




Changes in Customer Behaviour
 Fixed price contracts versus “time and materials”
 More business users versus transaction users
 Increased influence of CEO/business heads versus IT in decisions
 Growth into customers with limited/no in-house IT capability
 Etc.
Changes in Partner Behaviour
 Pressure for increase value added
 Focus on efficiency/repeatability versus “one-off” projects
 More global fulfilment
 Larger number of less sophisticated partners
Changes in Product/Technology
 ESOA, BPP, Etc
 Pre-configuration
 More ISVs
Competitor moves
 Competing visions (IBM?)
 Competing processes, e.g. BPO, Salesforce.com
Will Today’s Service Portfolio Deliver on Our
Strategy?
Three areas to test:
1
Market Fit
 Does it address changes happening in the market?
 Does it create sufficient value for our customers?
 Does it differentiate us from competitors?
2
Strategic Fit
 Does it support SAP’s key strategic objectives?
(such as market making for new products, expanded
customer base/SMEs, leveraging partners to improve
value for money and reach)
3
Performance Fit
 Can I continue to meet my budget?
 Can I maintain quality/integrity?
 Does it offer a career path for my people?
Contribution to Strategic Goal
What is the Contribution of Different Offerings
to FS/SAP Strategic Goals?
High
BProcess &Platform
Services
5
4
3
Appl. Impl.
2
1
Low
Customer
Value Add
Market
Maker
Partner
Enable
Mid-Size
Enable
Industrial
Fulfilment
Other?
Will Today’s Service Portfolio Deliver on Our
Strategy?
Three areas to test:
1
Market Fit
 Does it address changes happening in the market?
 Does it create sufficient value for our customers?
 Does it differentiate us from competitors?
2
Strategic Fit
 Does it support SAP’s key strategic objectives?
(such as market making for new products, expanded
customer base/SMEs, leveraging partners to improve
value for money and reach)
3
Performance Fit
 Can I continue to meet my budget?
 Can I maintain quality/integrity?
 Does it offer a career path for my people?
Three Main Types of Shift in the Portfolio
Contribution to Meeting
Budgeted Profit
High
Growth, Contraction,
Outsourcing
Performance
Improvement
Re-positioning
Low
Low
High
Contribution to Strategic Goal
SAP Consulting Will More and More Become a
Process Company
Low
Medium
High
Strategic Fit 2010
Source: Consulting Interview, 2010 view is inspirational indication
Exceed Target
Executive
Advisory
Services
(5%)
Quality
Assurance
(17%)
Target
Below Target
Business Process
& Platform
Services
(6%)
Quality
Assurance
(12%)
Target Profitability
Exceed Target
Below Target
Application
Implementations
Services
(75%)
Executive
Advisory
Services
(1%)
Industrialized
Services
(8%)
Business
Process &
Platform
Services
(35%)
Application
Implementations
Services
(35%)
Low
Medium
Strategic Fit 2010
High
Size of Bubbles = Revenue Share
Target
Industrialized
Services
(3%)
… towards a serviceoriented Process Company
Size of Bubbles = Revenue Share
Target Profitability
From Implementation
Consulting today…
Replace, recruit, develop
Proper handling
of low
performers
Always recruit A
Players
Key role of managers:
Develop and Manage to
Improve Performance
LOW
PERFORMANCE
Does not Partially meets
meet
expectations
expectations
5%
5-10%
Meets
expectations
70-75%
HIGH
Exceeds
Consistently
expectations
exceeds
expectations
10%
10%
Skill Transformation: What Are My Opportunities?
Business
The new service portfolio needs a more specialized set of skills. The strategic development
of our consultants follows a set of transformation paths.
Programm Manager
Organisational Expert
P-M
Strategic Analysis P-M Develop Industry
Solution Portfolio
for Corporate Funct.
& Industry Processes
Solution Portfolio Strategist
Business Strategist
CIO/CEO/Business Owner
C-Level
SAP C Mgmt Marketing
Business Expert
Business Manager
P-M
IT Strategy
Enterprise IT
Architecture Design
IT Strategist
C-Level
P-M
Transformation
Concept: Process, IT,
Organization
Bus. Transf. Manager
CEO
P-M
Transformation
Concept IT Strategy
IT Transf. Manager
CIO
Plan
Field of Activity
SAP Comp. Profile
S-P
Project Manager
S-P
Quality Management Consultant
Detailed Design
S-P
of Core Processes
Detailed Mapping
Process -> Application
Bus. Solution Architect
Process Owner
C-S-P
Process Implementation
C-S-P
Process Implementation Consultant
Customer PL
Software Blueprint
S-P
for Individual Development
Development Architect
Cust Develop.Lead
P-M Design
S-P System
S-P
Technical
Studies & Advisory
Technology Infrastructure Management Concept
Technology Strategist Techn. Sol. Architect
System Management Expert
CIO
IT Director
System Manager
Enterprise Level
Legende
C-S-P
Change Management Expert
C-S-P
Business
Analysis/Concepts
IT
P-M
Customer Role
M = Manager
P = Principal
S = Senior
C = Consultant
A = Associate
A-C-S-P
Expert Cons. for
SAP Composites & Repository
Application Consultant
Project Member
A-C-S-P
Test conception &
support for all test activities
Test Management Consultant
Customer PL
Integr. Development A-C-S-P
Integr. Development Cons.
Custom Development Lead
Expert Consulting for
Support/Optimize
Technical Components
System Mgmt
Technology Cons. A-C-S-P
Project Member
Process Level
Application/Technology Level
Build
Run
The action plan to master the challenges is
defined
 Enterprise SOA, PLAN & Customer Process Innovations
value
 Expand
ERP upgrades
for
Enterprises
 Large
IT Operations
Enable
growth
 A1S Ramp-Up
in SME
 Custom Development
 NPI, key solutions, Ramp-Up (e.g. CRM)
Drive early adoption of new solutions
 Blended education offerings
Enable
expand the partner ecosystem
 Growand
the ecosystem
Change
continuously
 Distributed
Delivery &
ouroptimized
fulfillment
operations
 Workforce readiness
Foster
personal growth
 Employer of choice
Planned versus Actual Strategy
Weed or
Flower?
Unexpected
Opportunities
Planned
Strategy
Accumulated
Decisions
Actual
Strategy
Missed
Opportunities
Good Strategy Execution =Planning +
Opportunism
Stability on the “What”, Flexibility on the “How”
Expectation
SAP Future
Weeds
Flowers
Weeds
NOW
Time
Results
419 % Wachstum in der Topline (2004-2008)
Profitability verdreifacht
Bei konstantem Headcount
Und branchenüberdurchschnittlicher
Mitarbeiterzufriedenheit
Mein persönliches Fazit
Die Breite des Studiums öffnet alle Türen
 Probieren !
Zu Beginn war es wichtig schnell viele
Unternehmen und deren Herausforderungen
kennenzulernen – Beratungsunternehmen sind
m.A. nach ideal
Was spannendes gefunden?  Profi werden
Personalverantwortung übernehmen - Wagen
Persönliche Strategie überprüfen –
Job/Familie/Gesundheit
Mein persönliches Fazit
Studium bildet Ideale Plattform um als Change
Agent zu arbeiten
The Team is all!
Verantwortung delegieren an die Top Experts
Ergebnisse konsolidieren
Strategie festlegen, revalidieren
Lass Dein Team als Gewinner dastehn!
Dankeschön
Prof. Liese Opportunitätskosten
Prof. Wenk Zerreissprobe plastische /elastische
Verformungen + Eisen-Kohlenstoffdiagramm
Prof. Johannes
Prof. Grillo
Entity Relationship Model
CD/Corp. Identity
Klaus Müllner/Edwin Keuchler Englisch/Französisch
Christoph Glatz
Post Networking
Fragen?