SAP Mobility Challenge, Part 7

SAP has much to gain from mobile enterprise applications. They can expand their user base beyond the current white collar workers in the office to the mobile workforce in the field. This has the opportunity to exponentially expand the number of people directly connected to SAP's applications and benefiting from them.

SAP is also seeking ways to expand connections to consumers in a B2C (business-to-consumer) model. This could expand the numbers of mobile users even more. Examples may include consumers requesting product orders, shipment tracking and customer support via mobile devices.

The challenge SAP needs to solve now is how to make money from these additional connected users on mobile devices. I believe it is fair for SAP to be paid for providing value to more users. Is extending SAP functionality to the mobile workforce worth the price of a full SAP user license, one half of a user license, one quarter? What do you think? That is the SAP challenge.

SAP's mobility partners like Sky Technologies, Sybase, ClickSoftware, Vivido Labs and Syclo all make money from selling software licenses or monthly subscriptions (SaaS) that enable the user to integrate and benefit from connectivity with SAP. It seems reasonable that SAP should also benefit from adding value to the mobile users. I expect there will be additional support requirements if an SAP customer doubled or tripled the number of users by extending mobile connectivity.

Mobile micro applications (light-weight mobile applications) that are purchased and downloaded from locations like Apple's iTunes make money for Apple and the software developer. Where does SAP fit into this revenue stream? Do mobile micro-apps pass on less revenue to SAP than a thick mobile client that can run in either a connected or disconnected mode.

How does SAP monitor and charge for mobile devices accessing its software? Where would the transaction gateway reside? This is going to be an interesting challenge for SAP. Please comment and share your thoughts on what models would work best and are justified.

Don't forget to join the SAP Enterprise Mobility group on Linkedin, and please make sure your enterprise mobility solution is listed in the SAP Enterprise Mobility solution directory.

For related articles:

SAP Mobility Challenges, Part 1
SAP Mobility Challenges, Part 2
SAP Mobility Challenges, Part 3
SAP Mobility Challenges, Part 4
SAP Mobility Challenges, Part 5
SAP Mobility Challenges, Part 6



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Author Kevin Benedict
Mobile Strategy Consultant, Mobile Industry Analyst and Web 2.0 Marketing Expert
http://www.netcentric-strategies.com/
www.linkedin.com/in/kevinbenedict
twitter: http://twitter.com/krbenedict
http://kevinbenedict.ulitzer.com/
http://mobileenterprisestrategies.blogspot.com/

***Full Disclosure: I am an independent mobility consultant and Web 2.0 marketing expert. I work with and have worked with many of the companies mentioned in my articles.
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SAP Mobility Challenge, Part 6

Would you use Linkedin if you had to make a phone call and ask each person individually if they were using Linkedin before connecting to them? What if you had to manually program each connection yourself according to the mobile operating system and version each friend or contact was using? What if the programming was different for every mobile device? What if you had to re-program the connection every time a friend changed smartphones or upgraded their OS? The system would quickly cease to be a benefit and start being a big burden wouldn't it?

The value of Linkedin is that it automates and standardizes most processes and connection related issues. Everyone connects in standardized ways and uses pre-built processes to manage all of their connections, security, settings, etc. It is easy to view all of your contacts and manage these contacts from one screen. Enterprise mobility and the support of mobile devices needs these same kinds of concepts in place.

Enterprise mobility, like most IT systems, need standards that include defined methodologies and processes in order to manage it effectively and efficiently. If your company or client has hundreds or thousands of smartphones, handheld computers or other mobile devices using mobile applications, thick and thin clients, MEAPs and micro-applications, there is an absolute requirement for mobile device management. If they don't, it will be a big challenge now that will only get bigger.

In the same way that the IT department needs to record and manage all desktops, laptops and servers and the software licenses and security on each, they will need to do the same for mobile devices that are used outside the four walls of the enterprise.

How is it done today? Many companies allow their employees to select their own smartphones and expense them each month. The company has no visibility to the specific mobile devices, operating system versions or downloaded mobile micro applications until they receive a request to connect it to the ERP or other back office applications. At that point it becomes an SAP challenge.

Is this a challenge that should be addressed in SAP, or is this a challenge that SAP's mobility partners like Sybase, Sky Technologies, Syclo or ClickSoftware should address outside of SAP? There are experts that specialize on mobile device management like B2M Solutions. They focus on the complete mobile project life cycle and provide management tools for each component of this life cycle.

IT asset management, the IT help desk, IT support, IT security, etc., must all embrace mobile devices and enterprise mobility and quickly set-up their internal systems and processes to support them.

On the subject of IT help desk, this is my favorite funny YouTube video on help desks.

I would like to hear your thoughts on how your company or your customers manage mobile devices.

Related Articles:

SAP Mobility Challenge, Part 1
SAP Mobility Challenge, Part 2
SAP Mobility Challenge, Part 3
SAP Mobility Challenge, Part 4
SAP Mobility Challenge, Part 5


***************************************************
Author Kevin Benedict
Mobile Strategy Consultant, Mobile Industry Analyst and Web 2.0 Marketing Expert
http://www.netcentric-strategies.com/
www.linkedin.com/in/kevinbenedict
twitter: http://twitter.com/krbenedict
http://kevinbenedict.ulitzer.com/
http://mobileenterprisestrategies.blogspot.com/

***Full Disclosure: I am an independent mobility consultant and Web 2.0 marketing expert. I work with and have worked with many of the companies mentioned in my articles.
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Interesting SAP Mobility Discussion Highlight

In the comment section of the article SAP Mobility Challenge, Part 4 there is an interesting discussion that I wanted to highlight for those that may have missed it.

***Comment 1

Kevin,

I agree about the small custom mobile solutions for small number of users. Usually such projects have high ROIs based on the urgent business needs. However, this is what happened in the past 10 years in the absence of a successful SAP mobility strategy and solutions.

Currently, companies look for company wide mobility strategy which covers most of the departments, or at least covers the main mobility requirements of the main business areas, which need it and prove to deliver high ROI. Based on different market researches and my own daily experiences, the trend is MEAP-based mobility solutions for mid and large size companies. Small companies still have the choice to continue using non-MEAP solutions like Sky Technologies.

Based on the definition of MEAP, vendors like Sky technologies don't deliver that category of mobility platform. MEAP requires middleware for many obvious reasons such as composition, data orchestration, performance... Instead, Sky delivers "innerware", which can be installed inside SAP, based solutions for SAP.

I admire Sky products for small companies. However, to get rid of the big troubles we had and still have on business mobility market, such companies will either have to merge with MEAP vendors or focus on small businesses, which are usually not the main group of SAP customers.

Best Regards,
Ahmed

***Comment 2

Ahmed,

You make some interesting points with regards to MEAP vendors, and I'd like to take the opportunity to discuss a little the Sky Technologies "inside SAP" approach to this. Although the Sky Technologies solution is delivered and implemented “inside SAP” this does not mean that the functions of the MEAP vendor middleware platforms has been ignored.

Using the “inside SAP” approach the Sky Technologies technology enables all of the key functions you describe (composition, data orchestration, performance, etc) to deliver SAP mobile solutions to global enterprises. This has been proven out over and over by the large number of global mobility deployments and customer references currently using Sky Technologies.

These large enterprise implementations understand that being “inside SAP”, the deployment, implementation cycles, ongoing maintenance and support are greatly simplified and lead directly to lower cost of ownership and greater return on investment.

I’d also like to take a moment to talk about “the middleware” requirements of the other major SAP mobility vendors. If we were honest the word “middleware” should be used in a plural form. These vendors require a highly complex landscape of middleware-upon-middleware in order to function. Not only do you have to implement the vendor middleware platforms, but this then has to be integrated with SAP via the SAP DOE Middleware platform. This leaves the mobile user many steps removed from the SAP process being mobilized.

By definition these other vendors mobilize their own middleware, with all of the associated duplication of business processes and rules in the middleware layer, and then attempt to integrate with SAP. In effect there are now at least two versions of the truth in respect of the business processes being mobilized. Sky Technologies maintains a single version of the truth - SAP, and truly mobilizes SAP.

Richard Ling, VP Technology, Sky Technologies
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Please add your thoughts and comments to this thread.

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Author Kevin Benedict
Mobile Strategy Consultant, Mobile Industry Analyst and Web 2.0 Marketing Expert
__________________________________
www.netcentric-strategies.com
www.linkedin.com/in/kevinbenedict
twitter: http://twitter.com/krbenedict
http://kevinbenedict.ulitzer.com/
http://mobileenterprisestrategies.blogspot.com/

***Full Disclosure: I am an independent mobility consultant and Web 2.0 marketing expert. I work with and have worked with many of the companies mentioned in my articles.
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SAP Mobility Challenge, Part 5

I have heard much discussion lately on the subject of mobile micro applications in the SAP ecosystem. These are described as light weight mobile applications that do simple things like:
  • Expense reports
  • Alerts
  • Approvals
  • BI reports
  • Etc.
There are literally hundreds of these micro-apps possible. The challenge is how does a SAP customer manage them? Does the mobile user really want 17 different little SAP micro-apps on their smartphone?

I see these mobile micro-apps as short term innovations that will quickly consolidate into a mobile enterprise application platform (MEAP). The SAP user ultimately wants one icon on their mobile dashboard not 17. This icon launches a menu system that can include 17 menu options with mobilized business processes. More options can be added through an opt-in function.

The MEAP vendors will rapidly create micro-apps and then quickly consolidate them on to their platforms. The big challenge for MEAP vendors is how to quickly create good MEAPs and get enough market exposure and success to be sustainable in the long run. MEAPs should include:
  • Rapid application development environments with excellent visual design tools for customizing and creating new mobile enterprise applications.
  • Powerful integration tools for connecting and synchronizing with a variety of backend database applications and environments.
  • Mobile user and mobile device management dashboards and tools for the IT help desk.
  • Support for all the major operating systems and popular mobile devices.
  • Integrated workflow engines that enable business processes and workflows to be extended out to mobile environments.

Let's think about the IT decision making process. Mobile workers may be using mobile micro-applications from 9 different mobile software vendors. There will be much overlap in features and functionality. The IT department will eventually start standardizing, consolidating and simplifying. It won't be long before the IT department starts requiring all mobile micro-applications to come from one or two MEAPs that have good frameworks and offer solid enterprise quality features.

MEAP vendors face a number of challenges:

  1. Developing solid MEAPs quickly.
  2. Getting SAP approval and partnerships in place.
  3. Developing many mobile micro-applications to cover the simple and niche requirements and preventing other companies from gaining a mobility foothold within the SAP ecosystem.
  4. Gaining thought leadership, mindshare, influence and brand recognition quickly within the SAP customer base.
  5. Educating the market on the requirements for a true enterprise quality MEAP.
  6. Pricing their solutions to gain market share quickly - this is a viral marketing event.
  7. Defending against a strategy of mobile chaos within the enterprise.
  8. Providing a roadmap and strategy for an orderly and quickly expanding enterprise mobility strategy.
  9. Arguing that any developer can develop a mobile micro-application, but only the experts can develop an enterprise quality MEAP.

The current strategy for most MEAPs seems to be to mobilize a vertical SAP business process quickly and then expanding in all directions. That means the current SAP MEAP partners are and will be colliding. Let the sparks and fun begin!

The companies that I view as SAP oriented MEAP vendors that are currently listed as SAP partners are:

There are a number of additional companies like Pyxis Mobile and Vivido that are moving into this space and many systems integrators with their own emerging mobile micro-apps and MEAP strategies. It will come down to enterprise quality MEAPs, thought leadership and mindshare.

If you are interested in discussing these topics in more detail or scheduling one of my in-depth two day workshops on these subjects please contact me.

Related Articles:


***************************************************
Author Kevin Benedict
Mobility Consultant, Mobile Industry Analyst and Web 2.0 Marketing Expert

http://www.netcentric-strategies.com/
www.linkedin.com/in/kevinbenedict
twitter: http://twitter.com/krbenedict
http://kevinbenedict.ulitzer.com/
http://mobileenterprisestrategies.blogspot.com/

***Full Disclosure: I am an independent mobility consultant and Web 2.0 marketing expert and as such I work with, and have worked with, many of the companies mentioned in my articles.
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SAP Mobility Challenge, Part 4

I have been involved in managing enterprise mobility projects for many years and have noticed some trends. The largest number of mobility projects within a company are not large enterprise wide projects but smaller departmental and business process specific projects. These often involve only 25-100 users. I have also been involved in projects with 500-3,000 mobile users as well, but there are far less of these. The small size and specific requirements of these smaller mobility projects cause many SAP mobility partners serious challenges.

Small mobility projects are often very important to a specific department. The success of the department can be dependent upon the implementation of a mobile application that helps them do more with less. The department manager will be very keen to find a mobile application that meets their specific requirements. They often have completely unique requirements that are hard for a mobile software vendor to develop and then leverage with other clients. They also have smaller budgets. As a result mobility projects for 25 users are often custom development projects and can cost the same amount to develop as a mobile application development project for 3,000 users. Examples of these types of mobility projects are:

  • Scaffold inspections
  • Disaster recovery missions
  • Bridge construction inspection project for a large engineering firm
  • Food processing inspection for a large CPG company
  • Hospital equipment sterilization and maintenance inspections
  • Hazardous waste inspection for a large engineering firm
  • Tire inspections on thousands of trucks and trailers for a large transportation firm
  • Weld inspection applications for a giant iron works company
  • Dairy farm and calf inspection
  • New car inspections after shipping

If the mobile application development project costs $500,000 USD to develop and deliver, then it only takes $167 per mobile user in savings and cost efficiencies to achieve a positive ROI if you have 3,000 mobile users, but $20,000 per mobile application user in cost savings and efficiencies if you have only 25 mobile application users. This makes it difficult for many MEAP and mobile application vendors to deliver a good ROI for small customized projects. Most mobile application or MEAP vendors focus on the $500,000 and higher projects. That leaves most enterprise mobility projects with limited options in the SAP ecosystem.

This is a challenge for mobile application vendors and the companies that require smaller customized mobility projects, but it is a big opportunity for mobile application and MEAP vendors that can figure out how to deliver these smaller customized projects cost effectively.

Some of SAP's mobility partners have solutions primarily designed to mobilize their own business applications, not custom SAP user requirements. It is the hundreds of smaller business processes that often fall between the cracks and cause the biggest challenges.

Sky Technologies is one of the Certified SAP mobility partners that provides a MEAP (mobile enterprise application platform) that can address the customized and often smaller business processes and mobility requirements easier than others. ClickSoftware is also vying for this role.

Related Articles:
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Author Kevin Benedict
Mobility Consultant, Mobile Industry Analyst and Web 2.0 Marketing Expert

**Full Disclosure: I am an independent mobility expert and Web 2.0 market expert and as such I work with, and have worked with, many of the companies mentioned in my articles.




Interviews with Kevin Benedict