SAP 2.0 Promises Business Value – Can SAP Deliver?

David Edwards . Operations Professionals

SAP’s new executive Chief Value Officer (an omnipotent title), Chakib Bouhdary, is promising that SAP is prepared to arm it’s customers with exciting new insights into best practices, benchmarks, process optimization, and “creating value along the entire IT investment lifecycle”. Quite a mouthful from the largest provider of enterprise software in the market. Has SAP finally realized that software isn’t the “be all, end all” solution for business success? Can SAP reconcile the gap between information technology solutions and real business performance improvement? Can SAP deliver?

SAP appears to be recognizing the limits of the pure IT market, just like IBM did many years ago. Now, using a vast repository of SAP customer experience, SAP intends to expand into the world of enterprise “Value Engineering”. Bouhdary states “At SAP, we have always focused too much on products: we’re a product company. But we are at a time now when we need to have our conversations with CEOs and CIOs go beyond products and instead begin to help guide our customers on issues of strategic value.”

So what happens when the goals of the business are better supported by SAP competitors? Will SAPs value engineers be able to recommend and support the implementation of non-SAP solutions, or will that situation never arise due to the vast capabilities of SAPs solutions? What if the best solution is to reduce spending on software and consulting, and focus on internal capability development? The competing interests of software solution providers and their customers have always required customers to be diligent in determining the real value of the solutions under consideration, and now SAP wants to help their customers with that determination?

This new direction from SAP should be interesting. You can read more about it in the following article from InformationWeek:

Global CIO: SAP 2.0 Promises Business Value Over Products: Can It Deliver?

If SAP can deliver on the vision of its Chief Value Officer, it will make available to CIOs best practices, benchmark metrics, and breakthrough thinking and innovation.

By Bob Evans
October 8, 2009 08:00 AM

 Talk can be cheap because the gap between what companies promise and what they deliver is often enormous. On Tuesday at SAP (NYSE: SAP)’s glittering new headquarters in suburban Philadelphia, an executive with the unprecedented title of Chief Value Officer made some sweeping promises about how SAP is prepared to arm customers with intense new insights into best practices, benchmarks, customer insights, process optimization, and “creating value along the entire IT investment lifecycle.”


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