Fred Isbell SAPinsider Projects 2016 Session: Making a Business Case for Cloud and Digital Transformation

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 0Internal

Fred IsbellSenior DirectorSAP Digital Business Services Marketing

Building a Business Case for Cloud and

Digital TransformationIssues, Considerations, and Best Practices

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 1Customer

Agenda

Market Context

Innovation Adoption 101 and Digital Transformation

Navigating Digital Transformation Technologies

– Third Platform, Nexus of Forces and Digital Transformation

– Background, Customer Successes, & Project Considerations for Cloud, Social, Big Data

and The Internet of Things (IoT)

Best Practices for Making a Business Case for Innovation

Wrap-up


Market Context:

Making a Business Case for the Cloud

The “Third Platform” (IDC) Digital Transformation

The “Hype Cycle” (Gartner)Innovation Adoption

The Internet of Things (IoT)

Customer Challenges

IDC predicts IoT to reach

$1.7B in 2020 from

$655B in 2014

Innovation 101 & Digital

Transformation


Business ContextThe Pace of Change is only Accelerating

0% 10% 20% 30% 40% 50% 60% 70%

Pace of Change (%)

Q: Has the pace of change increased for your organization?

No, Not at All Yes, I Think So Absolutely

33%

61%

6%

Source: Incite Marketing Customer Study, 2015


Audience QuizWho Pioneered These Innovations?

First Fortune 500 Web Site

First Internet Firewall

First Internet & TCP/IP Networking

First VPN/Internet Tunneling Software

First Internet Search Engine

First use of “Business Intelligence” (BI)


Audience QuizWho Pioneered These Innovations?

First Fortune 500 Web Site

First Internet Firewall

First Internet & TCP/IP Networking

First VPN/Internet Tunneling Software

First Internet Search Engine

First use of “Business Intelligence” (BI)


Innovation Adoption 101The Model & Segmentation

Innovation Adoption:

• A model that classifies

adopters of innovations

based on their level of

readiness to accept new

ideas

• Innovative adoption

characteristics are assigned

to groups -- all innovations

go through a predictable

process before becoming

widely adopted.

• The groups consist of early

adopters, early majority, late

majority, and laggards

Source: dictionary.com

Source: Rogers, G. Moore, MIT Sloan/CAP Gemini, Wikipedia

“Crossing the chasm”

Early adopters achieve:

+9% revenue creation

+26% impact to profitability,

+12% market valuation


Innovation Adoption 101Time to Innovation Adoption

Source: Rogers, Moore, McKinsey, Wikipedia

• Inflection point (curve begins to slow)

= point of “critical mass”

• Key -- get there quickly, whether users

or product volume, etc.

• Failure to “cross the chasm” (Geoffrey

Moore) or reach critical mass =

doomed to a smaller, sub-optimal

market and much smaller market

share

Source: “No ordinary disruption”, McKinsey, May 2015

The “Need for Speed” has never been greater


The Hype Cycle: riding the “roller coaster” of innovation

The hype cycle is a branded

graphical presentation

developed and used by

American information

technology (IT) research and

advisory firm Gartner for

representing the maturity,

adoption and social application

of specific technologies. The

hype cycle provides a graphical

and conceptual presentation of

the maturity emerging

technologies through five

phases

Source: https://en.wikipedia.org/wiki/Hype_cycle

https://en.wikipedia.org/wiki/Hype_cycle


Why Do We Need to Respond to New Technology and

Innovations?

"Innovation has created a digital

economy and digitization is

affecting all businesses and all

industries. So how do you make

this transition to digital? Simple.

Every business in here today is

in a state of transformation”.

Bill McDermott, CEOMay 2015


Digital Transformation – A Definition


Digital TransformationThe common issues we hear


SAP Digital Business Framework

Navigating Innovation

Technologies


My Innovation Journey & Navigation

IBM 3270

Terminal

c.1982

Compaq

“Portable”

c. 1983

Tech

Stack

c.2015

Desktop,

Laptop &

iPAQ PDA

c. 1998


IDC PerspectiveAdoption of 3rd Platform Technologies

Enterprises are using 3rd platform technologies to create value and competitive

advantage through new offerings, new business models, and new relationships

Source: IDC


SAP and the Transition to the Third PlatformInnovation Solution Accelerators

SAP and the Transition to the

3rd Platform

“SAP, in its 40-year history, has made the

journey from the 1st Platform (mainframes) to

the 2nd Platform (client/server) and is laying

the groundwork to shift to the 3rd Platform.

SAP now delivers a growing portfolio of 3rd

Platform applications. In support of these

offerings, SAP also provides a set of targeted,

fixed-priced, and scoped packages called SAP

Rapid Deployment solutions to address the

challenges for organizations in transitioning to

the 3rd Platform.”

Henry Morris, Senior VP, Worldwide Software and

Services Research, IDC

Source: IDC


Gartner Perspective The Nexus of Forces

• “The Nexus of Forces is the

convergence and mutual

reinforcement of social,

mobility, cloud and information

patterns that drive new

business scenarios.

• Although these forces are

innovative and disruptive on

their own; together they are

revolutionizing business and

society, disrupting old

business models and creating

new leaders.

• The Nexus is the basis of the

technology platform of the

future.”

Source: Gartner

http://www.gartner.com/technology/home.jsp

http://www.gartner.com/technology/home.jsp


“More than 60% of CEOs expect 15-50% of their earnings growth in the next 5

years to come from technology-enabled business innovations.”

McKinsey study, 2013

Innovation Technologies Will Drive Digital Transformation

Cloud

Abundance of cost-

effective computational

power and storage

Social

Connected business

and social networks

Big

Data

Real-time analytics

for behavioral and

predictive insights

Internet of Things (IoT)Machine to

Machine communications

and sensor-based Data


Innovation Technologies: Cloud Computing

Software as a Service

(SaaS)

Platform as a Service

(Paas)

Infrastructure as a Service

(IaaS)

Business Process as a

Service

(BaaS)

Public Cloud and Private

Clouds

Collaboration & Business

Networks


Cloud Deployment Models


Opportunities & Project ConsiderationsCloud Computing

Utilize or build upon cloud technologies to

create business-relevant functionality

Collaboration tools and integration are to key

simplifying processes

Mobility is a key argument for and a driver of

cloud solutions

Big data is synergistic with the cloud – much

of the use of big data originates in the cloud

Digital marketing & Cloud integration is key

to making this happen

Cloud computing is transforming the way that

application testing is performed – testing as

a service (TaaS?)

Think about the business need and stress

how cloud helps you deliver against those

needs more effectively

Source: PAC 2013

“Cloud computing is

a game-changing

concept (and) is

really a way of

provisioning and

using technology,

not a technology in

itself!”

Cloud readiness

varies by region


SAP Customer Success: McLaren


SAP Customer SuccessMIT

Migration to Suite on HANA in the

HANA Enterprise Cloud (HEC) builds

foundation for

Real-time access to transactional data

HANA Cloud Platform (HCP)

SAP Fiori

SAP S/4

Enable a flexible staffing model to

rapidly gain access to specialized

technical skills and quickly respond to

community needs

Enable staff to focus on MIT-specific,

differentiated needs

Disaster Recovery (DR) availability outside of

Boston metro area

Improved performance


Innovation TechnologiesSocial Media and Digital Transformation

Metcalfe’s Law: the value of a

network is proportional to the

square of the number of connected

users (a network’s value grows

exponentially)

A variation Reed’s Law speaks

specifically to the utility obtained

from scaling social networks

Pull versus Push

Best Practices: Learn, Observe,

Listen, Jump in and Actively

Participate

Blurs the line between work and

private life, get used to it, it’s not

going away!

“Social media spending is currently 11%

of marketing budgets and is expected to

grow to 14% in the next 12 months and

24% in the next five years.”Duke CMO Study 2015


Opportunities & Project ConsiderationsSocial Media and Digital Transformation

Embrace key enabling technologies: Cloud,

Big Data/ Analytics, Mobility, Social Media

and the ubiquitous Internet

Enable the user/customer experience: Digital

products & services, digital sales and

marketing and Digital customer Interaction

Drive a transformation of your Business &

Technology Strategy and build a culture of

innovation, participation and collaboration

Enable collaboration across the enterprise

and beyond traditional enterprise borders

Become strategic partner for the digital

transformation process and maintain

relevance by jumping in & supporting

“Successful digital transformation comes not

from implementing new technologies but

from transforming your organization to take

advantage of the possibilities that new

technologies provide.”

MIT Center for Digital Business

Source: PAC 2013


SAP Customer Success The Digitalist

SAP platform for Thought

Leadership and Executive

Research

BLOG contributions from internal

and external thought leaders

New Executive Quarterly tablet

magazine

Executive Research including

white papers, infographics and

more

All shared & promoted through

social media marketing

2M+ page views YTD, 900K

unique visitors

Executive Research

Executive Quarterly Thought Leadership

BLOGS

www.digitalistmag.com

Social Media Sharing

http://www.digitalistmag.com/


Innovation TechnologiesBig Data and Analytics

Navigating the Data and

Information Explosion

Business Intelligence

Rise of the Information Worker

Real-Time Information Access

Big Data on top of Next-

Generation In-memory

Database Technology is the

new “Killer App”

Dashboards & Predictive

Analytics

“Brave New World” of Sports

Mr. Data

Brent Spiner

“Father of BI”

Howard Dresner


Opportunities & Project ConsiderationsBig Data and Analytics

Add social media monitoring as new types of

data are becoming available (including web

user statistics, social media, etc.)

Major opportunity for real-time data analytics

Prepare for your Big Data deployments – start

by being in a “look-and-learn” mode

Include business-oriented expertise in your

skill development

Customer behavior analysis for the next wave

of e-commerce and social and digital

transformation

Prepare for and embrace predictive analytics

and data science

“Ultimately, companies

are not looking for Big

Data solutions. They are

looking for business

outcomes. Service and

technology providers need

to solve business

problems”

Source: PAC


SAP Customer Success

NHL.com

Real-time Statistics w/ SAP HANA

Enterprise Cloud (HEC):

NHL.com powered by SAP HANA

Enterprise Cloud, SAP analytics and

data visualization

Goal: increase fan engagement &

deepen loyalty

Includes new design, introduction of

enhanced statistics & visualization

capabilities

Playoff prediction tool/bracket challenge

Strong results:

– 98 years worth of NHL statistics

– 25% increase in new visitors since the

new stats section was launched

– 45% increase in time and engagement on

site NHL Customer Testimonial Video

“The Late One”:

NHL Stats: 0 GP, 0 G 0 A 0 Pts 0 PM

http://sap-customers.flowcenter.de/mfc/medialink/6/de09509547639ff2f870d1d1d9d988c5de5c30f21733c458a4fb1240eaebe03ea806/SAP_Sapphire2015_NHL_ChrisFoster_FINAL_360p.mp4


The Internet of Things (IoT)

Massive amounts of data

from peoples, sensors &

devices – and growing

rapidly

Gartner projects IoT will

increase nearly 30-fold from

about 900 million connected

devices in 2009 to more

than 26 billion by 2020

IDC projects IoT spending in

2015 is expected to exceed

$1.7 trillion and 15 billion

devices and grow to $3

trillion and nearly 30 billion

devices by 2020

Source: IDC, Gartner, SAP 2015


Smart metering for a North American

leader in energy distribution

Honda R&D -- Connected cars & using

sensors and IoT for a sense-and-

respond paradigm to increase efficiency

SAP Customer Success Internet of Things (IoT)

Air as a service

Engine testing in real-time linking

testing applications to SAP analytics

Business & IT Outcomes

Making a Business Case for

Innovation


Making a Business Case for Innovation

Define the cost of what's not working:

Examine inefficiencies

Find areas for simplification

Move beyond the buzzwords to the heart of the

business problems:

Get beyond “geek speak” (and SAPanese)

Define the individual problems that the cloud can address

Understand that the business case needs to be specific and

tied to an overall plan:

Define a path to success -- define what's wrong,

determine how to fix, and demonstrate why right

path to fix

Describe the current state, delineate a path to the fix

points and outline cost advantages and build a detailed

plan3 Secrets to creating a business case for

cloud computing

http://www.infoworld.com/article/2619229/cloud-

computing/3-secrets-to-creating-a-business-case-

for-cloud-computing.html

http://www.digitalistmag.com/cio-

knowledge/2016/08/22/business-case-for-cloud-and-cloud-

solution-maturity-04410392

http://www.infoworld.com/article/2619229/cloud-computing/3-secrets-to-creating-a-business-case-for-cloud-computing.html

http://www.digitalistmag.com/cio-knowledge/2016/08/22/business-case-for-cloud-and-cloud-solution-maturity-04410392

Wrap-up


Navigate Digital Transformation with Leading & Innovative

Consulting & Systems Integrators (CSIs) & SAP Partners

The Gartner Magic Quadrant (MQ)

report provides comparisons of

vendors’ products and services,

helping customers with vendor

selection by providing a detailed

analysis of products and services

Gartner evaluates service providers

on their Ability to Execute and

Completeness of Vision

SAP Service & Support is a leader in

the latest 2015 Gartner MQ for SAP

Services

Click here for the latest report

Source: Gartner July 2015

http://www.gartner.com/technology/reprints.do?id=1-2K4ZADH&ct=150729&st=sb


Implement Solutions Quickly, Affordably, and Predictably

with Outcome-Based Services from SAP

Deliver value throughout the

implementation and dramatically

reduce cost, risk, and time to value

Achieve up to 40% faster time to value

with innovative implementation

approaches

Get up and running quickly with rapid-

deployment solutions

Accelerate project delivery with

outcome-focused methodology,

preconfigured processes and iterative

deployment


Run Live. Run Simple.with SAP Digital Business Services

Digital Transformation Success Starts with Aligning Business and IT on

your Digital Business Strategy

www.sap-digital-business-

services.com/

http://www.sap-digital-business-services.com/


Making Digital Transformation Possible (Video)

https://www.youtube.com/watch?v=BVUfGhRBbr8&index=2&list=PLFrwZZeBUtfgkxHjrwr6f_-QGXs70XNOE

https://www.youtube.com/watch?v=BVUfGhRBbr8&index=2&list=PLFrwZZeBUtfgkxHjrwr6f_-QGXs70XNOE


Where to Find More Information

• SAP Services Hub: www.sapserviceshub.com/h/

• SAP Services on SAP Community Network (SCN):

scn.sap.com/community/services

• SAP Digitalist: digitalistmag.com

• SAP Digital Business Services on sap.com:

www.sap-digital-business-services.com/

http://www.sapserviceshub.com/h/

http://scn.sap.com/community/services

http://www.digitalistmag.com/

http://www.sap-digital-business-services.com/


7 Key Points to Take Home

Digital Transformation and Innovation are

the foundation for the future – starting NOW

You must think differently and address a

new scale of users, devices, applications,

and data & content in a whole new way than

you are used to

Look to SAP and customers and partners

for leadership examples and attend key

events such as SAPinsider, SAPPHIRE

NOW/ASUG, and SAP TechED to learn and

experience more

Address the requirement for business

outcomes in your projects and make a solid

business case for innovation

Live next-generation innovative solutions:

embrace and experience big data &

analytics and grow team collaboration with

cloud-based tools & solutions

Subscribe to and read key sources of

Innovations and Thought Leadership such

as the SAP Digitalist and SAPinsider

magazine and on-line

It’s a great time in the industry and our

careers to work with SAP solutions!

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

Thank You!

Fred IsbellSenior Director, Head of Thought Leadership and BMO

SAP Digital Business Services Marketing

[email protected]

www.sap.com/services

Twitter: Fmisbell

Facebook: Fred M Isbell

Linked In: www.linkedin.com/pub/fred-

isbell/0/827/903Edit

mailto:[email protected]

http://www.sap.com/services

http://www.linkedin.com/pub/fred-isbell/0/827/903Edit


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