New Battle Foe for SAP?

In the general field of enterprise resource planning, SAP and Oracle has been on very tight competition for the last five years. Despite the very close competition, SAP has always remained number one.

But now, in the particular field of customer relationship management (CRM), SAP has meet a new and smaller but nevertheless fierce competitor in Salesforce.com

Salesforce.com has built its niche in selling of on demand customer relationship management software applications and other development platforms for enabling partners and customers to develop add-on applications which includes enterprise resource planning that can integrate with the development platform of Salesforce.com.

Similarly, SAP also plans of selling in as early as year 2008 an integrated suite of ERP and CRM software which ultilizes a a development platform for building add-on composite applications.

Both Salesforce.com and SAP are rolling out their new applications and platforms and yet they have denied any competition. But take this: During the week of September 17 when Salesforce.com unveiled Force.com as its new development platform's name in San Francisco during its Dreamforce user conference, SAP as also launching at the same times its on-demand suite Business By Design, which as the former A1S code, in New York.

SAP Deputy CEO Leo Apotheker said: "It is comparing a little hors d'oeuvre, an appetizer, and a complete three-star meal. Salesforce has a CRM application. It happens to be that the vast majority of businesses on this planet do a little more than just CRM. Our attempt is to get rid of all these acronyms. Businesses don't really buy acronyms, they buy a processes flow, a business model. We provide a complete solution and we provide a complete suite, lock stock and barrel, which is Business ByDesign] You don't need CRM from Salesforce any more. It's superfluous. No wonder Salesforce.com CEO Marc Benioff is worried. It is disconcerting. He has every right to be concerned."

The final piece of the Force.com platform will be the VisualForce which can let developers build any user interface for any application. Salesforce.com also announced that it will add two more new applications to its CRM portfolio. These two new applications will be called Content and Ideas and will be designed to appeal to a broader user base. Content will be more about Web 2.0 technologies while Ideas is move of a service for building communities where people meet and post and vote ideas.
On the other hand, SAP has been dominating the ERP software industry and is not new in full ERP integration with on-demand. Although not yet available, SAP's Business ByDesign will be able to deliver suites for common back-office functions such as finance, human resources, CRM, supply chain management, supplier relationship management and corporate governance.

SAP and Salesforce.com have been reaching the midmarket with the latter more aggressively looking for inroads leading to enterprise markets. SAP, well, has of course built a niche on the enterprise markets.

Whoever wins in this battle, if ever there is a battle, will benefit two entities: the winner and the consumers.

SAP A1S No More

Recently, SAP announced that its software as a service (SaaS) ERP A1S is now called SAP Business ByDesign along with encouraging small and mid sized company to jump into the ERP bandwagon.

The SAP Business ByDesign is an ERP software has been meant to be marketed as a very affordable business solution for midsized companies with 100 - 500 employees. This solution has a starting price of $149 per month per user and the package already include the software, services and support, for companies with a minimum of 25 licensed users. Since this catered to smaller companies with limited financial resources, not everything is packaged for compulsory purchase. A company has a choice to avail of a $54 per month option for "efficiency users" who may want only a limited access and the company can choose also to buy the business solution for a set of five users only.

Says SAP CEO Henning Kagermann: "It is the most important announcement of my career I'm making today. We designed this product to create a new market for us."

Very true indeed what Kagermann is saying. The SAP Business ByDesign is by subscription model so that small and medium sized companies will not be burdened or overwhelmed with one time high price. This solution joins the like of Business One and All-in-One in SAP's small and midsized business (SMB) portfolio.

The Business One solution is an easy-to-use business management software application which has the capability of having a single system spanning all cores of business operations including e-commerce and web based customer relations manager. It designed for a company of about 100 employees or less to help it with wholesale distribution, discrete manufacturing, retail, and professional services operations.

On the other hand, the SAP All-in-One is a complete business solution with a slashed down price for smaller companies 2,500 employees. Like the SAP Business One solution, this is also an on-premise product. The SAP All-in-One is based on both SAP ERP 6.0 and SAP CRM so companies can have a fully integrated ERP software providing support for key business processes from human resource management to financials and purchasing to inventory and production. It also comes with business analytics and high end reporting tools to manage an integrated sales, marketing and service processes.
As trend would show, it is not just SAP which is targeting small to mid sized businesses. Its toughest competitors Oracle and Microsoft, along with smaller others and other business solutions company mergers are into this market area. This is a wonder move as smaller companies no longer get trampled in the competition by giant companies and multinational corporations.
Also, as SAP revealed in their website, there are more than 65% of all customers SAP coming from small- and midsize companies. This spells into a bright sales prospect for ERP software vendors.
As for the SAP Business ByDesign, the company is today in pilot phase in countries from Germany and the United States and has on going validation in France, China and the United Kingdom.

Web development platform for on-demand software

A couple of months ago, Google and Salesforce.com made a sensational pact wherein Google will can help small enterprises in generating sales leads while Saleforce will take its turn turning these leads into actual customers.

A few days ago, Salesforce.com announced that it has developed a new rich web platform for building on-demand business software geared towards leading to an explosion of applications which is similar that to that with Facebook.

Salesforce.com, a San Francisco based company known for its talent for coming up with great catchphrases, calls this development as Force.com which is a "platform as a service". This platform can be used by non-programmers so they can easily make very attractive online applications which will connect with other within the fast expanding Salesforce ecosystem.

This is really nothing new and as I previously mentioned, Facebook has been quite busy these past few days handling open apps like these from its huge base of social networkers. Look at online sites like craigslist.org and you will see advertisements seeking programmers who can develop Facebook applications. And Saleforce.com recognizes with the words of Ariel Kelman, senior director of platform product marketing at Salesforce.com saying: "Once you provide the openness, we think you will see an explosion of apps analogous to Facebook."


Salesforce.com, a global leader in On-Demand Customer Relationship Management is also the developer of AppExchange, an application that can host on-demand software created with partners. It is fast catching up with CRM and ERP leaders such as SAP AG, Oracle Corp. and Microsoft Corp by constantly innovating its flagship CRM service.

In August, Saleforce.com has announced that during the second quarter, AppExchange has already 48,000 registered developers after about a year and a half from its release. These registered developers are independently working or for 348 independent software vendors that have created 642 applications.

In very stark contrast, Facebook, since its launching of its Facebook Platform in May, has only ore than 3,500 applications. The success of the system could be attributed t the popularity of social networking websites.

According to Kelman, much of the code can easily slide straight into the Force.com environment without a lot of rewriting so that software vendors or companies with existing Web applications can easily do the integration into their existing systems. He furthere added that "Porting over the user-interface elements you can do very quickly, but there will be some effort involved in migrating the database and logic. But after that, the ability to change your application becomes so much more flexible."

Open platforms are fast becoming more popular internet and more and more pluggable modules can be easily downloaded online. This is great indication of collaboration among many coders online and such scheme can bring out the best creativity in people while making them earn money for what they love doing in their most flexible schedules. The continued popularity of open platform will definitely mean more robust yet flexible business applications in the months to come.

IPhone and ERP

If I may ask, what is the common thing beween and iPhone and an enterprise resource planning software?

Of course we know the iPhone to be an ultra fashionable device with multimedia and Internet-enabled quad-band GSM EDGE-supported mobile phone developed and marketed by Apply and many young people are going gaga over it…blah blah.

But an iPhone for an ERP? Sounds like a far fetched idea! But then again, with information technology, there is disparity which cannot be merged together. If oil and water were digital stuff, definitely, there would be an easy method to get them together the IT way.

A couple of weeks ago, Netsuite, a business solutions / ERP vendor, introduced a mobile application access interface that it calls SuitePhone. The SuitePhone can allows users of the iPhone a link up to information which stored in the latest version of Netsuite's software, the NetSuite 2007.

The synchronization offered SuitePhone takes advantage of the many functionalities available with the iPhone.

According to Malin Huffman, senior manager of product management at NetSuite:
"Traditionally in a mobile environment business applications provide a scope of functionality that is limited—typically customer relationship management or access to the back office, but it's a defined set of capabilities. With iPhone, all of NetSuite's CRM, all of enterprise resource planning is available—even the ability to manage e-commerce activities."

Netsuite has been a provider of integrated on-demand CRM and ERP and has been on-going in its deepening support for Apple's Safari browser as well as intensifying its use of AJAX technology. And this all makes sense: AJAX as open standard and Safari as Apple's browser can surely optimize and expose the many features of the iPhone!

Developments like this are just exciting and for sure many businessmen are enthused about accessing enterprise while being in remote places with only their phones. Well, there is the laptop but that is different thing. A laptop is heavier and bulkier and needs an internet service provider. With the iPhone, there is nothing to add except the SuitePhone software. Enterprise data consumer from CEO down to admin staff can remotely access financial data functionalities such as invoicing, accounts
receivable and payroll.

As of the moment, there are still certain limitations. This is of course a natural thing since the technology is still new. As Huffman said: "There are things like printing that just aren't supported yet. This is really about accessing information in NetSuite and entering new information. We're expecting people to check dashboards or run an income statement. We don't really think people are going to spend 8 hours a day on the iPhone".

For sure this software and the Netsuite – iPhone partnership, like all other things in information technology, will evolve fast. For now, I want to imagine myself listening to my favorite music or watching my favorite video on my iPhonewhile on a remote island. And while doing all that, I can still get my financial alerts. Wow, the beauty of being a mobile worker!

The SAP xApp Analytics

If you have not been a user of SAP and don’t have any idea yet about analytics, perhaps you might want to try Google Analytics service. It is for free. So, with Google analytics, one can see so many things about the activities of one's website. With Google Analytics, one can view who have visited the website, from what countries, cities and localities the visits are coming from, which page has the most activities, what keywords were used to find the page using what search engines, and more. Analytics are a great tool to give one a greater picture of the company and how capitalize on the strong aspects of the operation in order for the company to be profitable and get headed for growth.
The same is true for SAP xApp Analytics, only that the xApp is more detailed and powerful. This application can help a company aggregate, normalize, classify enrich all sort of data coming from various sources.
I read on Fortune Magazine an article stating that about 90 percent of business organizations today have failed to execute processes based on their corporate strategy simply because they lack effective means for aligning their action with strategic initiatives. In fact a study has shown that only 5 percent of the workforce in a typical business organization understands corporate strategy and only 25 percent of management incentives are linked to strategy.
With that record, it is apparent is the need for organized information to help companies have strategic imperatives down to their process level. And a good Analytics tool can help companies achieve these strategies.
SAP xApp Analytics provides facts-based view and understanding of all company customers including prospects. It is also encompasses understanding about partners, suppliers, employers and more. This knowledge is imperative to achieving both strategic and operational processes.
Let us take the case the CRM capabilities which are supported by SAP xApp Analytics. CRM delivers key performance indicators straight to the business user and SAP xApp can help the company analyze won or lost opportunities over time while assessing relative potential sales and gaining a quick view of orders to stocks. SAP xApp Analytics can also enable key company managers and administrators have a picture of important KPIs for service level agreement compliance, server order details and other customer related reports. SAP xApp Analytics can help retrieve data related to planning from the CRM system and compare the said data with actual progress. This can give company staff a clear view whether certain margins are achieved or not. The transactional integration of SAP xApp Analytics with the back end system can also help some cases where breaches occur. For instance, if there is a breach at call service level, SAP xApp Analytics can automatically send notifications to the customer service management.
Having an analytics tool is a great investment with a huge potential ROI in whatever industry the business operates in. SAP xApp Analytics can support many industries from aerospace to chemicals to telecommunications to utilities.