Café Innovation Blog

Innovation in how organizations support their SAP investment is in many ways just as important as how they innovate with SAP at the center of their technology investments. The role of a community-based approach should be considered as also the importance of the BPXer. Organizations are beginning to look at new models emerging within the SAP ecosystem that rely on a community-based approach and look to lower the TCO (financial and environmental) for their technology investments. Oct. 19, 2009

Read full post at: http://www.sdn.sap.com/irj/scn/weblogs?blog=/pub/wlg/16352

When organizations go down the path of innovation, it is often a reflection of strong, courageous leadership. Leaders who are confident of their own vision and in their people’s abilities will find success more easily for they can provide clear direction, and the right level of support for their business process experts. Oct. 1, 2009

Read full post at: http://www.sdn.sap.com/irj/scn/weblogs?blog=/pub/wlg/16039

[Cross-posted from SAP Community Network: Puneet Suppal’s SAP Network Blog ]

My attention was drawn to an upcoming webinar (led by Christopher Carter) discussing “SAP in the Cloud how soon is the reality?” (go to: http://www.ccierp.com/Index/SAP-in-the-cloud-how-soon-is-the-reality.html). It reminded me that there are many discussions across the industry that have to do with similar topics.

A lot of discussion in recent times has focused on virtualization and almost in the same breath around “clouds” (the two may only be related but many of us appear to often treat them as parts of the same conversation). The big question has been around SAP offerings being served up in this fashion. That this will eventually happen in some form is perhaps not in much doubt, though questions remain about what and when. Interestingly, while many have jumped on this latest “cloud” bandwagon (remember SOA was the hot topic not too long ago), folks need to remember that what will make this successful is still something as old-fashioned as focus on process excellence.

For one, consuming offerings served up in a cloud would have something to do with consuming services. Services, we have discussed before, are in essence a reflection of process building blocks that run a business. Services done right should be re-usable and available to be shared. So an understanding of how this will work is just as important as in the scenario where SAP is deployed in a traditional manner… and, perhaps more so.

Secondly, while certain calculations can demonstrate how consuming SAP out of a cloud can reduce overall TCO, the burden on an organization to get its processes right and keep them relevant does not in any way go away! In other words, SAP in the cloud as a technology move does not offer a panacea for the many pains an organization might have to deal with. If anything, it shines the spotlight more intensely on getting the process part right. It is only when this aspect is addressed that the true impact of leveraging the cloud will be revealed – the ability to flexibly create new business solutions thus making an impact on the organization’s competitive edge.

Several previous posts in this forum have discussed the topic of getting a culture of process primacy going and have spoken of the need for an organization to evolve into a Business Process Enterprise (BPEn). Those considerations remain just as strong in this context.

So if you are an organization getting ready to take advantage of “SAP in the cloud” then you should be looking at preparing by getting the process side of the house in order. Remember to empower your business process experts to help fashion your renewed solution. You will need them to get the most out of your SAP cloud.

– Puneet Suppal [Enterprise SOA Solutions & Innovation – Capgemini]

[Cross-posted from SAP Community Network: Puneet Suppal’s SAP Network Blog ]

In recent months we have frequently discussed the need for organizations to maintain focus on what the post-downturn world will be like with respect to competition and what it will take to get there. In this context the discussion has often been about maintaining and growing the ability to deliver innovation-based process renewal. In their efforts to succeed in this, organizations will have to consider the need to collaborate with partners and potentially even competitors.

A closer look at the software business, tells us that this is increasingly so. Let us take SAP as an example. It is well-known that despite some competitive element there is collaboration between SAP and Microsoft, as well as SAP and IBM. More recently the co-innovation story has grown to include many other combinations, such as SAP-HP, SAP-Cisco, and SAP-VMware. The SAP Co-Innovation Lab (COIL) network works with these and many other partners in the growing SAP ecosystem to discover, and design solutions for organizations that are looking to maximize the return from their SAP investment. As SAP pursues co-innovation in this manner, it is obvious that they are able to deliver value for their joint customers. The growing trend of co-innovation is evidence that this is working since there are ever more organizations that are willing to take advantage of this. Can this approach work in other industries, for example in the case of a logistics company or for a consumer products company?

The need to innovate is also felt within such organizations and there is no reason why they cannot co-innovate with their partners. Some are already doing this and others will increasingly do so. More and more, companies thrive within business networks and this means there is a greater interdependence within these networks between business partners. Active co-innovation in processes should lead to more desirable results with respect to effective performance and better revenue numbers. In many cases co-innovation could come from joint activities not just between two companies, but perhaps between three or more companies. To succeed in such endeavors, companies need platforms that are nimble and leverage the advantages of services-orientation. This also means there is a need for organizations to focus on important organizational issues such as establishing a culture of process primacy, information sharing, and establishing the business process expert role.

These topics are gaining in importance as companies look to retaining and gaining competitive edge. If it hasn’t already, your organization should consider this too.

P.S. I am taking some time off from most things electronic. I will be back in August. Stay cool!

– Puneet Suppal [Enterprise SOA Solutions & Innovation – Capgemini]

[Cross-posted from SAP Community Network: Puneet Suppal’s SAP Network Blog ]

In the cover story of the June 15, 2009, issue of Business Week, titled, “Innovation Interrupted,” Michael Mandel makes the argument that during “the last decade, U.S. innovation has failed to realize its promise-and that may help explain America’s economic woes.” If it is true for a nation that competitiveness and good economic health are tied to innovation, then why would this not be true for a business enterprise?

The article referenced above lists a number of technological breakthroughs in 1998 that did not live up to their commercial promise for a variety of reasons. Fortunately for business enterprises, unlike a national economy, they can coordinate the efforts to innovate with the drive to deliver value to the business, thus substantially limiting the pitfalls that can jeopardize success. Targeted innovation with a recognized area of business value can be the impetus to keep driving excellence even in a downturn, thus leading to a better utilization of existing investments and eventually to enhanced competitiveness.  This will ensure that innovation in business processes today will not amount to unrealized value several years later.

In order to succeed in this, however, one needs to approach innovation in a balanced way. On the one hand, one cannot approach innovation in a regimented manner. I am not suggesting that this be done laissez faire, but at the same time I caution against the old-fashioned command-and-control type of project approach well suited to traditional projects. The goal should be to balance creativity with some basic discipline; in other words, unfettered creativity within established boundaries. One of the things that all organizations must grapple with now is the rapidly growing preponderance of social networking tools. In this same article, the pervasiveness of Google, Facebook, Twitter, smart-phones etc. is cited as evidence of rapid innovation all around us. We must take this seriously. These have become the tools we live by. What was an optional “extra” on the fringes of the organization will soon have to become mainstream thus demanding that any business process renewal take into account how people really interact and how that can best be used to drive effective behavior. An example of how important these tools have become is apparent from recent events.

Iran is experiencing significant political turbulence which the free world is learning of through social networking tools! The court-side view of what is increasingly appearing to be a revolution-like situation is made possible by those who Twitter! This in turn is creating its own political force, for it is recognized inside Iran that the world is aware of what the people of Iran wish to express. If this turbulence in Iran snowballs into a revolution of some sort, we might have to credit Twitter as one of the instruments involved in this slice of history! Unprecedented perhaps, but significant nevertheless. At the time of writing this post it is unclear how things will shape up, but one thing is very clear – the information coming out of Iran despite the heavy clamp-down on traditional media outlets is taking advantage of people-centric technology. Videos taken by mobile phones are making their way out, and a continuous stream of updates are using Twitter. In fact, earlier today Twitter had to re-adjust its schedule for routine maintenance in order to stay available during Iran’s daytime hours!

This shows the extent to which, even in societies that we might consider less modern, people-centric technology is impacting daily lives. In other parts of the world, individuals who live by these tools are increasingly bringing these into the workplace. The smart option is to build the solutions of tomorrow whether on SAP or not taking this into account. The use of mashups (web hybrid applications) should leverage these increasingly, making the enterprise solution of tomorrow a true expression of how people want to conduct business.

– Puneet Suppal [Enterprise SOA Solutions & Innovation – Capgemini]

[Cross-posted from SAP Community Network: Puneet Suppal’s SAP Network Blog ]

This year was the most lightly attended SAPPHIRE in years, and I don’t believe the H1N1 virus had much to do with it. But the attendees were a very serious bunch. They were focused on solutions and had specific questions and needs. The SAP ecosystem made a strong showing, and hopefully many attendees came away satisfiedThe one thing that should have struck them is the discussion of the Clear Enterprise. I have had interesting conversations with several people who dismiss this as a “marketing thing.” Others, are not sure what to make of it. While the words may have the ring of smart marketing there is a very solid truth behind the message.

SAP’s message on this is that in order to thrive in the current global economic crisis and to emerge successful, enterprises should focus on opening up their silos of information and processes and recognize that emerging technologies will facilitate this process, radically changing the way they will operate in the future. On the surface of it this is not a dramatically new statement. What is important to note are the points being made about emerging technologies and imminent radical changes in the way businesses will operate. These points are indicators of innovation; in other words, innovation is bound to happen to ensure enterprises survive and ultimately succeed, and this innovation is bound to happen in the arena of processes (that is what the silo-busting talk is all about). It is up to an enterprise to proactively move in that direction or to be forced to change its approach by the demands of the marketplace and its own internal constituencies.

In an economic downturn, I have found people often balk at the mention of “innovation” thinking that this might imply a major risky venture. What I have frequently said is that often innovation is about the little things we can do to improve, or enrich, seemingly routine processes. That is what SAP is pointing to. By re-crafting processes we indeed open up the possibility of getting away from the silo effect in process and information. As an example, SAPPHIRE also had quite a bit of focus on the SAP Business Objects Portfolio. The Business Objects Explorer (Polestar) is an example of how quickly information can be molded into satisfying user need. This is an instrument, therefore, of realizing the vision of the Clear Enterprise.

In order to realize the Clear Enterprise vision, an organization needs to have the ability to implement solutions that are, in my words, of a “click-to-fit” nature, based on reliable and robust but rapid techniques. These will necessarily require strong business process skills and hence business process experts. I suggest checking out the presentation, “Using New SAP Capabilities for New Business Requirements,” given during SAPPHIRE (http://www.sap.com/community/showdetail.epx?itemID=17743).

For SAP customers the choice is clear – continue to move ahead with the spirit of innovation and inculcate a culture of process. This will enable you to derive greater advantage from your SAP investment. The alternative is characterized by a poorer return on investment.

* NOTE: I apologize for the delay in coming out with this post.

– Puneet Suppal [Enterprise SOA Solutions & Innovation – Capgemini]

[Cross-posted from SAP Community Network: Puneet Suppal’s SAP Network Blog ]

We are less than a week away from SAPPHIRE ’09. I have, in the past, shared my thoughts on key matters after the SAPPHIRE and TechEd events. I promise to do so again after SAPPHIRE this year in Orlando. This year though, I have become privy to certain interesting propositions that will be on offer at SAPPHIRE. In a year when people are having to make discerning decisions as to what event to attend, I feel sharing this might be of use to those attending the event – so I ask for your indulgence (my apologies, if this comes across as a plug for these topics)!

For one, SAP is obviously going to be driving the Business Suite argument and will expectedly make every effort to show how enterprises can gain with this offering together with the SAP Business Objects portfolio. The argument about speed and flexibility is an important one – specially in this day and age given the dynamically changing environment and scarce funds with which to combat it. In this context, a landmark thought leadership white paper* co-authored by Peter Maier (Senior VP, Industry & Suite Marketing, SAP) and Andy Mulholland (Global CTO, Capgemini) will be presented (by them) underscoring some key nuanced points on why the most recent offerings from SAP are different and why they should be important to the SAP ecosystem. This should have an impact on how SAP and its partners approach selling SAP software and services to enterprises and how enterprises and their partners approach implementation of SAP in the future.

Speaking of implementing SAP, there will be a large assembly of SI partners – no surprise! Each one will be attempting to promote their own strengths – again, no surprise! Some of them will likely present unique approaches to implementation – there could be something novel here for the discerning attendee. Often SIs guard their own implementation methodologies rather zealously and are not very interested in opening the proverbial kimono. However, at SAPPHIRE this year there will be an interesting exposition of a book called ArchitectedSAP® (Mendel Koerts and Lucas Osse)*. ArchitectedSAP® is the name the authors have given to a multi-disciplinary end-to-end approach to strategy delivery, helping an enterprise to navigate from strategic intent to delivered change in daily operations. It focuses on the integral application of the services concept in the business and IT domain, specifically SAP-centric ones. This book is intended to provide the enterprise a means to purposefully deal with the dynamics that characterize this era of continuous transformation we are living in, pragmatically linked to IT environments where SAP solutions play a role. It also contains a list of different methodologies that have been successfully tried and tested. For business process experts I see this as an enabling resource for it can boost their own capabilities.

SAP will also be looking to promote its offerings in the arena of providing more “insight” to businesses. The Business Objects Portfolio of offerings should be in sharp focus. In this context, SAP Business Objects Polestar* is likely to be one of the offerings being promoted. A one line summary of its oomph factor would run something like this – it combines the simplicity and speed of search with the trust and analytical power of business intelligence (BI) to provide immediate answers to business questions – the emphasis being on the word immediate. Polestar is designed to leverage the BI platform’s entire range of capabilities and is deployable in days, not months. Since the time-to-value in this case is of such a dramatically short duration, it should be in the “must-be-checked-out” category for SAPPHIRE attendees!

Besides these, there will be the usual quota of announcements from SAP and its partners, but I fully expect to see on-display around the show differentiated offerings from the various SIs and ISVs that inform SAP customers (and prospects) how best to gain additional value from all their existing and future SAP investments. Seek out those that promise to help provide game changing capabilities, for as we have said within this forum, it is not just about surviving this economic downturn, but to take appropriate steps so we come out ahead! Seek out those that are guiding you toward smart innovation – there is at least one joint information session where SAP is promoting the topic of Co-Innovation (COIL)* along with its partner’s RApid INnovation* program. This aspect is geared toward sharing how an enterprise can take actionable steps to unlock greater value from their SAP investment.

If you are attending SAPPHIRE, have a great one. I will return after SAPPHIRE with my next post.

* NOTE: For those interested in knowing more about the above referenced: (a) white paper (Time to Change – New Thoughts on Supporting Business Change Fast and Flexibly) or the related presentation (Insight Session – Save Money, Deliver More, and Do It Fast!); (b) a presentation on Polestar/BWA and the Business User (Insight Session – Get Real – Actual, Practical Insights About Performance from SAP Business Users); (c) the book, ArchitectedSAP®, (d) a presentation on RApid INnovation and SAP Co-Innovation Lab (Insight Session – Fight the Downturn with Innovation!), please visit this Microsite.

– Puneet Suppal [Enterprise SOA Solutions & Innovation – Capgemini]

[Cross-posted from SAP Community Network: Puneet Suppal’s SAP Network Blog ]

Optimism, in general, got a big shot in the arm with the rescue of Captain Richard Phillips from Somali pirates. Coming as it did when the news is generally characterized by stories of economic misfortune and gloom, I was reminded that while the rescue of the economy might take a while to be completed, we must all do our part – at least in the optimism department. It is not merely about keeping our spirits up but also to position our enterprises to better compete past the current recession.

In the most recent issue of Business Week (April 20, 2009) there is a bold feature on “The 25 Most Innovative Companies.” The main takeaway from this story is that the most innovative companies are not reining in R&D and continue to pursue avenues that will lead to better products or processes or both. It is no surprise to see Apple ranked at the top of this listing for they have established themselves as forerunners in innovating with products around how consumers use technology. It should also be noted that the list includes Vodafone for its efforts in “reaching out to new partners and finding that open innovation can help it create services and markets faster than it could on its own.”

The last example is one of innovating collaboratively – something that seems intuitive but is only recently beginning to take off with a little more energy. Across various enterprises, such innovation thrusts are becoming more real because the use of technology today allows this to happen more easily. These in turn are becoming additional sources of revenue. After Apple’s iPhone App store we now have BlackBerry App World and Google’s Android Marketplace. All of these reflect to quite an extent the result of innovation that took place outside these companies, within their ecosystems.

Then there are those that have looked at refining existing processes just that extra bit to yield additional benefit, and sometimes competitive advantage. In many cases, it is only a simple matter of looking at what can be done better. It is astounding how often we ignore this simple truth in order to seek out a killer app or killer idea that will bring outrageously immense benefits! In this context, it is important for SAP customers to recognize that they need not look very far if there are challenges they wish to address with technology. I concede that often the answers are hard to come by even if you possess all the right tools. However, this is where the enterprise must rely on its best trusted advisor, its SI partner, to guide and help it to extract additional value from its SAP and other technology investments.

I would ask every business to challenge its IT department and its SI partner to find ways to better use its existing investment in SAP and other technologies to design and deploy refined business process solutions. Unless, you are on a really old version of SAP, there are innovative ways of driving such value. To unlock the value in your SAP and other IT investments, your enterprise will need to embrace new ideas – ideas that go beyond mere cost-cutting in order to establish a sound basis of renewed processes that will yield savings and additional value beyond these troubled economic times.

Are you ready to liberate your organization from the desperation that leads to cost-cutting and bring it to the state where greater value may be realized through innovation?

– Puneet Suppal [Enterprise SOA Solutions & Innovation – Capgemini]

[Cross-posted from SAP Community Network: Puneet Suppal’s SAP Network Blog ]

The downturn in the economy has put many an organization in a holding pattern mode with respect to kicking off new projects. There is a wait-and-watch attitude that is taking hold. In this forum we have exhorted companies to not let the environment overshadow their strategic intent, but there will always be those who are more risk-averse than others. For these organizations, now is the time to take a harder look at their processes as a precursor to the IT projects that they will embark on when they begin to feel a little more confident. These organizations should view this as a period of preparation – even if it is one forced upon them by circumstances. For example, if you are an organization that is impressed with what you can do with SAP Business Suite 7, but would prefer to wait a few months, then now is the time to get your house in order with respect to process renewal and refinement. I know of a few who are already down that path. They have taken a position around the BPX role and have empowered these professionals to start focusing on the challenges from a holistic process view. What some of these folks might find really helpful is a discussion I happened to chance upon in the March 2009 issue of the Harvard Business Review (http://www.hbr.org/).

In the article, “When Should a Process Be Art, Not Science?“ Joseph M. Hall and M. Eric Johnson (Harvard Business Review, March 2009) present an argument that we may have gone overboard with process standardization. They state that many processes are more art than science and imposing rigid rules on them crushes innovation, and adversely impacts performance. Their arguments need to be lauded because once we start to look past our obsession with process standardization we will be able to recapture the American innovative spirit! The three key points made by them are: (i) Identify the processes that should and shouldn’t be art, (ii) Develop an infrastructure to support processes that are art, and (iii) periodically reevaluate the division between art and science. It is encouraging that now academic attention is being brought to bear on this topic!

The third point above is important because any new dynamic, such as change in competition, disruptive technology, market conditions, or a new generation of consumers/users, could disrupt status quo and redefine what should be art and what should be science. The authors acknowledge this but what needs further discussion is how quickly can an organization effect the change – art to science or vice-versa – and, do this without any significant loss of momentum?

It is not enough to be able to re-classify processes (art to science or vice-versa), just as it is not enough to merely develop an infrastructure that supports processes categorized as art. What is needed is an infrastructure that is flexible enough to quickly make the change and support the functioning of the new arrangement because a process could go from art to science or vice-versa very quickly. What is needed is an infrastructure that encompasses the necessary technology capabilities and the people aspects that will make it easier to reevaluate, reclassify, and work the new arrangement. With respect to the people aspects, a culture of process primacy needs to be in place.

We know that a lot of emphasis is given to establishing standard processes, and sometimes to new processes – but mostly during a major initiative or systems implementation. What is woefully lacking in many instances is the drive to sustain the focus on processes and to look at them end-to-end past the completion of that special corporate initiative or that major systems implementation. What is often lacking is a “business process perspective” which has been described in previous posts right here and in the community book, Process First. If the organization’s culture supports the view that process excellence is a key organizational objective, and there are individuals dedicated to working with business processes without being held hostage to technological or political limitations, then the infrastructure to support the entire range of processes – those that are science and those that are art – will be indeed effective in providing speedy relief.

This is the work that needs to happen while we wait to start big new projects.

– Puneet Suppal [Enterprise SOA Solutions & Innovation – Capgemini]

[Cross-posted from SAP Community Network: Puneet Suppal’s SAP Network Blog ]

Let us consider a hypothetical situation….

Jill Lee is seated across from her manager, Burt Litman. She has just finished explaining that as a security expert and one charged with compliance enforcement she finds the changing environment very challenging. The fact that many in the organization are punching out of the firewall to external web sources of data, and that many are spending a lot of time collaborating with peers across and beyond the organization using Facebook has left her wondering if there is any such thing as standard process in the organization. She feels that the company’s data, and implicitly its future, is being compromised with these actions – actions that she is having a hard time trying to fit in her model of acceptable process execution behavior. She is worried that the auditors are going to have a whole bunch of things to complain about. She has an idea of what should happen next but wants to first hear from her manager.

This conversation is making Burt very uncomfortable. He is not sure how to respond to her concerns. He has been a diligent and hardworking employee who has always followed the rules and has earned kudos for holding down costs while maintaining good performance levels on his team. He has seen the messages from higher up that speak of how the future is all about adopting more interactive ways of executing processes. He has heard the pitch about collaborative business models, and he has agreed with others that a more end-to-end business process view should be adopted all around. However, he is not sure what to do about it. He wonders how best to push forth on the high level direction he has received but is at a loss about how to accomplish it without sacrificing the demands of security, risk management, and of ensuring compliance.

Does this sound familiar?

In this forum we have focused on the aspects of innovation and what that means from a business process perspective. We have also touched on the topic of governance. Within this last topic is included the topic of security and compliance. Today, this assumes greater importance because with SAP Business Suite 7 we have an enhanced ability to flexibly model new processes. As we do this we break old paradigms about how certain transactions should be conducted. Should the notions about security and compliance be tied to old-fashioned ideas of what is acceptable and what is not? While there will always be some absolute “don’ts” there is ample room for the practice of security and compliance to grow and figure out new controls to match new processes. Perhaps there is a need to remodel the notion of what constitutes acceptable execution of business processes such that as processes are flexibly changed they do not constantly run into a “no compliance” zone. How can this be made easy or possible for organizations? Let us see what Jill might be thinking….

Jill was trying to piece together the rather confusing explanation she had just heard from Burt, and then decided to go boldly where she had not gone before…. She ventured to suggest something that had been percolating in her mind for some time. She proceeded to remind Burt about a presentation they had both attended. It had been given by one Shiva Vijayraj, a passionate yet reasonable evangelist for business process innovation. He had spoken about the concept of the “business process perspective” and how an organization could evolve into a Business Process Enterprise and what that meant for the future of how business processes could be flexibly improved thus continuously providing new competitive strength. She then explained to Burt that for her to do her job well and stay in tune with what was changing around them, she needed to get closer to the business process action and structure a framework that would allow for her and her team-members to weigh in with security and compliance input whenever a changed/improved process ran into an existing requirement for compliance. What this meant, she explained, was that what is acceptable today may have to be revisited tomorrow, as long as the overall objectives of compliance and security were not compromised.

“How do you propose starting down this path?” asked Burt. “I will become as much of a business process expert as anyone else so that as a process expert I see the value in an improved process before I question its acceptability from a compliance standpoint.” This was all too revolutionary for Burt, but in some strange way he could see her point. It was late and he had to get home to catch the game he had been waiting for all season. “Let us continue this discussion tomorrow,” he said and reached for the his laptop’s power cord.

Jill and Burt can wait until tomorrow; let us start this discussion today! Let us keep it going for it is important to have compliance needs working together with, and not against, those engaged in process innovation.

P.S. Please note that Jill Lee, Burt Litman, and Shiva Vijayraj are fictional characters. Any resemblance they may bear to any person living or dead is purely accidental and certainly not intentional. If you do happen to personally identify with any of these characters then please congratulate yourself for you are in a position to influence your organization’s success!

– Puneet Suppal [Enterprise SOA Solutions & Innovation – Capgemini]