What's New

Balancing Digital Investments Is Key to Driving Sustainable Growth in India's Manufacturing Sector, Accenture Research Finds

Accenture News - Wed, 04/11/2018 - 02:30
NEW DELHI; April 11, 2018 – Manufacturing businesses in India are keen to invest in digital technologies but are struggling to derive tangible business benefits due to an imbalanced approach to digital investments, according to Reinventing Business with Industry X.0, a new report from Accenture (NYSE: ACN).
Categories: What's New

SAP Announces First Collaboration in esports and Becomes the Official Innovation Partner of Team Liquid

SAP News - Tue, 04/10/2018 - 08:00
WALLDORFSAP SE (NYSE: SAP) today announced a new sponsorship deal with Team Liquid, one of the most successful teams in esports.
  • SAP will become a three-year sponsor of Team Liquid
  • SAP and Team Liquid will co-innovate on in-game data analysis to improve player and team performance
  • SAP HANA business data platform to be used as foundation for co-innovation process

The sponsorship of Team Liquid is the first collaboration of SAP with a professional esports organization. As official innovation partner, SAP will work with Team Liquid on co-developing software based on in-game data, which will help Team Liquid analyze performance and achieve greater precision in areas like team and player performance and scouting new talent.

SAP will support Team Liquid by implementing a range of innovative technology solutions that deliver cutting-edge analytics to the team to improve overall performance in training and in competition. The SAP HANA business data platform will serve as the core technology for co-development. Additional components such as SAP Cloud Platform, the SAP Leonardo digital innovation system as well as the Internet of Things (IoT) and predictive and machine learning functionalities will be evaluated as part of the co-innovation process. By equipping Team Liquid with the most innovative tools possible to track and improve performance, SAP hopes to participate as an authentic, global and sustainable player in the esports ecosystem, addressing a young and tech-savvy esports community.

“After deciding to become a sponsor in the field of esports, SAP took time to observe and analyze the market and its ecosystem before finally deciding to partner with Team Liquid – one of the most successful teams in the business,” said Stefan Ries, chief human resources officer, SAP. “For SAP, esports opens us up to a tech-savvy and highly skilled young audience and potential new talent for SAP. As a global, innovative and forward-looking technology company, SAP provides a high brand fit to the esports ecosystem.”

“There is a strong demand for meaningful data and analytics software in esports,” said Victor Goossens, co-CEO, Team Liquid. “For Team Liquid, competitive performance is key – and smart technology and data give us the best possible tools to analyze and improve. As a technology company at the cutting edge of innovation and with sponsorship experience across sports and entertainment, SAP is the perfect partner to collaborate with Team Liquid to create tools and solutions to fuel our competitive journey.”

“esports is a highly interesting field for SAP. With a team sponsorship, SAP will be able to activate its full potential by working closely together with Team Liquid to understand their needs and apply innovative technology solutions to address them,” said Lars Lamadé, head of sponsorships, Europe and Asia, SAP. “SAP as an innovation-driven company is interested in esports as a 100 percent digital sport with a high speed of development. The partnership with Team Liquid, with a true and authentic co-innovation mind-set at its core, will become a great use case for SAP technology.”

Visit the SAP News Center. Follow SAP on Twitter at @sapnews.

About Team Liquid

Team Liquid was founded in 2000 as a clan on the gaming platform Battle.net, and has now evolved into one of the leading international multigame esports teams with training centers in Utrecht, The Netherlands, and Los Angeles, California. Team Liquid has over 70 athletes competing across 13 distinct games, including all major esports titles, such as DOTA 2, League of Legends and CS:GO. Team Liquid is one of the most successful esports teams in the Western market in terms of competitive achievement and fan engagement across multiple sports. In 2017 its DOTA 2 team, led by German superstar Kuro “KuroKy” Salehi Takhasomi as team captain, won The International and took home the most important title and prize pool in the sport.

About SAP

As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 378,000 business and public sector customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

Note to editors:
To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. To view video stories on diverse topics, visit www.sap-tv.com. From this site, you can embed videos into your own Web pages, share video via email links, and subscribe to RSS feeds from SAP TV.

For customers interested in learning more about SAP products:
Global Customer Center: +49 180 534-34-24
United States Only: 1 (800) 872-1SAP (1-800-872-1727)

For more information, press only:
Isabelle Schuhmacher, +49 (0) 15167834049, isabelle.schuhmacher@sap.com, CET
Bonnie Rothenstein, +1 (610) 661-8867, bonnie.rothenstein@sap.com, ET
SAP News Center press room; press@sap.com
Nicola Piggott, +1 (347) 658-8923, nicola@thestorymob.com, ET

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
© 2018 SAP SE. All rights reserved.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

Categories: What's New

SAP Announces First Collaboration in esports and Becomes the Official Innovation Partner of Team Liquid

SAP News - Tue, 04/10/2018 - 08:00
WALLDORFSAP SE (NYSE: SAP) today announced a new sponsorship deal with Team Liquid, one of the most successful teams in esports.
  • SAP will become a three-year sponsor of Team Liquid
  • SAP and Team Liquid will co-innovate on in-game data analysis to improve player and team performance
  • SAP HANA business data platform to be used as foundation for co-innovation process

The sponsorship of Team Liquid is the first collaboration of SAP with a professional esports organization. As official innovation partner, SAP will work with Team Liquid on co-developing software based on in-game data, which will help Team Liquid analyze performance and achieve greater precision in areas like team and player performance and scouting new talent.

SAP will support Team Liquid by implementing a range of innovative technology solutions that deliver cutting-edge analytics to the team to improve overall performance in training and in competition. The SAP HANA business data platform will serve as the core technology for co-development. Additional components such as SAP Cloud Platform, the SAP Leonardo digital innovation system as well as the Internet of Things (IoT) and predictive and machine learning functionalities will be evaluated as part of the co-innovation process. By equipping Team Liquid with the most innovative tools possible to track and improve performance, SAP hopes to participate as an authentic, global and sustainable player in the esports ecosystem, addressing a young and tech-savvy esports community.

“After deciding to become a sponsor in the field of esports, SAP took time to observe and analyze the market and its ecosystem before finally deciding to partner with Team Liquid – one of the most successful teams in the business,” said Stefan Ries, chief human resources officer, SAP. “For SAP, esports opens us up to a tech-savvy and highly skilled young audience and potential new talent for SAP. As a global, innovative and forward-looking technology company, SAP provides a high brand fit to the esports ecosystem.”

“There is a strong demand for meaningful data and analytics software in esports,” said Victor Goossens, co-CEO, Team Liquid. “For Team Liquid, competitive performance is key – and smart technology and data give us the best possible tools to analyze and improve. As a technology company at the cutting edge of innovation and with sponsorship experience across sports and entertainment, SAP is the perfect partner to collaborate with Team Liquid to create tools and solutions to fuel our competitive journey.”

“esports is a highly interesting field for SAP. With a team sponsorship, SAP will be able to activate its full potential by working closely together with Team Liquid to understand their needs and apply innovative technology solutions to address them,” said Lars Lamadé, head of sponsorships, Europe and Asia, SAP. “SAP as an innovation-driven company is interested in esports as a 100 percent digital sport with a high speed of development. The partnership with Team Liquid, with a true and authentic co-innovation mind-set at its core, will become a great use case for SAP technology.”

Visit the SAP News Center. Follow SAP on Twitter at @sapnews.

About Team Liquid

Team Liquid was founded in 2000 as a clan on the gaming platform Battle.net, and has now evolved into one of the leading international multigame esports teams with training centers in Utrecht, The Netherlands, and Los Angeles, California. Team Liquid has over 70 athletes competing across 13 distinct games, including all major esports titles, such as DOTA 2, League of Legends and CS:GO. Team Liquid is one of the most successful esports teams in the Western market in terms of competitive achievement and fan engagement across multiple sports. In 2017 its DOTA 2 team, led by German superstar Kuro “KuroKy” Salehi Takhasomi as team captain, won The International and took home the most important title and prize pool in the sport.

About SAP

As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 378,000 business and public sector customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

Note to editors:
To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. To view video stories on diverse topics, visit www.sap-tv.com. From this site, you can embed videos into your own Web pages, share video via email links, and subscribe to RSS feeds from SAP TV.

For customers interested in learning more about SAP products:
Global Customer Center: +49 180 534-34-24
United States Only: 1 (800) 872-1SAP (1-800-872-1727)

For more information, press only:
Isabelle Schuhmacher, +49 (0) 15167834049, isabelle.schuhmacher@sap.com, CET
Bonnie Rothenstein, +1 (610) 661-8867, bonnie.rothenstein@sap.com, ET
SAP News Center press room; press@sap.com
Nicola Piggott, +1 (347) 658-8923, nicola@thestorymob.com, ET

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
© 2018 SAP SE. All rights reserved.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

Categories: What's New

ERP Licensing for the Digital Age

SAP News - Tue, 04/10/2018 - 05:00
Shaking up the software industry by changing decades-old models.

SAP is shaking up the industry and raising the bar on software licensing practices by tackling ERP licensing for the digital age with new licensing practices, new rules of engagement for usage and compliance, and a new pricing model — all developed jointly with our customers, user groups, analysts, and influencers. Read about our journey of transforming ERP licensing for the digital age.

Old Licensing Models Not Fit for the Digital Age

For more than 40 years SAP has been helping companies run mission-critical business processes across all industries. Our ERP software* is at the heart of our customer’s business — the digital core behind their success. Customers have been finding new ways to extend the use of their digital core by giving access to business partners and consumers via third-party applications, and they are increasingly connecting to automated systems, IoT devices, and bots. It is exciting to witness all these digital age advances and how our customers are using enterprise software to transform their businesses. However, pricing models for enterprise software designed in the 20th century have remained relatively the same across the industry and are not optimal for this new type of digital access, which the industry has coined “indirect access.”

SAP’s ERP pricing model was designed for when our customer’s employees were expected to log directly into the SAP ERP to use it, and it was centered on identifying and licensing every individual using the software. This user-based pricing works well for direct human access because it is predictable and well understood. However, it is not easy to apply when the ERP system is used indirectly (e.g., by a user logging into another application that then uses the power of SAP Digital Core to execute the business process) or digitally (e.g., when a device or a bot uses the system, and not a human user). This has led to ambiguous interpretation of use and to unproductive discussions over what counts as users. The ambiguity has also led to inconsistent sales and audit practices that have ultimately shaken some of our customers’ trust.

Journey to Modernize ERP Pricing

At SAP the customer voice matters; when customers speak, SAP listens. We’ve heard loud and clear that businesses need certainty and that the current license model does not address digital access such as IoT devices and bots. They need predictability over their license commitments, transparency on their use, and consistency of sales and audit practices.

To address these concerns, we took an unconventional industry approach and we collaborated closely with user groups, customers, industry analysts and other stakeholders. Together we developed a “first-of-its-kind” outcome-based model for indirect digital access.

Our journey began over a year ago, and a major milestone was announced at SAPPHIRE NOW in 2017. We introduced a pricing model based on valuable outcomes delivered by the ERP system. This outcome-based approach eliminated the need to count individual users or other parties accessing SAP ERP via a third party system or interface for the two most common indirect access scenarios: order-to-cash and procure-to-pay. In addition, we announced that indirect static read** would be free of charge. That said, these 2017 pricing changes were our first step in the longer journey of modernizing our licensing policy, as it did not address every indirect access scenario, such as IoT devices, bots, or intelligent systems.

A New Pricing Model Fit for the Digital Age

In SAP’s legacy pricing model, both direct human access and indirect digital access are primarily licensed based on users. SAP has developed an outcome-based pricing model that differentiates between direct human access and indirect digital access. This new model is designed to address every conceivable indirect access scenario for the digital age. It was designed to provide customers the business certainty and predictability on their license commitment.

Indirect Digital Access ERP Pricing

The predictability of this new model begins with nine document types that represent system records of the most valued business outcomes from the ERP system. Use of the ERP system through indirect digital access will be licensed based on the initial creation of these documents, and the document license value is based on the total number of documents created. Let’s highlight elements of this model that customers will appreciate.

Outcome Focused. SAP is counting only nine document types that address the most valuable business outcomes. All other document types are not charged for.

Based on Value. Pay for system activity. The new model eliminates the need to count “users” accessing the ERP system and addresses concerns around access by IoT such as devices, bots, etc.

We also looked at many sources of data and models to come to the conclusion that not all documents are valued equally. Hence, our model has two different weights corresponding to their value. The most valued used documents are weighted at 100% (multiplier =1), and documents of lesser value and more frequently used are weighted at 20% (multiplier = 0.2).

Flexible and Transparent. What goes towards that total number of documents licensed?

  • Onetime create cost. SAP counts and charges for the creation of documents triggered via indirect digital access. All other operations, post-creation, on the document are included in the onetime create action cost.
  • Read, update, delete included. All read, updates, and delete actions on the document via indirect access do not incur a charge.
  • Interchangeable document capacity. The total number of documents licensed applies to any of the document types created, regardless of type.

Built-in Volume Discounts. Will I get a discount if I buy more? Of course, there is always a discount in matters of software sales. In our new model, we will offer tiered pricing where the higher the number of create document transactions, the lower the cost per document transacted. This model works well for all industry use cases from high volume businesses to low volume businesses

Measurable. Our new pricing model design goal was to provide an objective measurement of use, and to further support this, SAP plans to provide customers with tools to monitor and measure their ERP use. Customers should be able to manage their entitlements and consumption of licensees, and there should be no surprises during an audit.

What does this all mean? At this point, we’d like to point out the implications of this new indirect digital access ERP pricing policy with regards to some highly discussed topics.

  • Users: No more counting users or trying to define what constitutes a user via indirect access. It doesn’t matter how many users are accessing the ERP system via a third-party application.
  • IoT devices and Big Data concerns: Only if the IoT device triggers a create action in the ERP system will we count such transaction, all read, updates, deletes are included. Frequency or data volumes are inconsequential.
  • Indirect Static Read: This new pricing policy for indirect digital access of ERP goes above and beyond the Indirect Static Read** policy introduced in 2017. By the new policy definition, SAP only counts and charges for the creation of documents by the ERP system triggered by indirect digital access, therefore eliminating the need for a separate Indirect Static Read policy for ERP.

Direct Human and SAP Application Access to ERP Pricing

Direct human access to the digital core continues to be licensed based on users. No change there.

Access to the digital core by an SAP application is included in most SAP application’s license. SAP applications refer to line of business and industry applications, as well as SAP Solution Extensions. This policy does not apply to technology solutions such as database, SAP Cloud Platform, middleware integration, etc.

Opting In to the New Indirect Digital Access Pricing Model

All new SAP S/4HANA customers will have the ability to license the new indirect digital access model from the beginning. Existing SAP ERP on-premise customers can choose the path that’s right for them. They can continue with their existing user-based pricing for indirect access, in other words they can keep their status quo and do nothing. Or they can choose from two options that include the new document-based license model:

  • License Exchange. Customers wanting transparency for indirect digital access and wishing to remain with their existing contract may exchange the value of user and/or order licenses for Document licenses.
  • Contract Conversion. Customers licensing SAP S/4HANA may convert their existing contracts to a simplified contract, and receive up to 100% credit for their prior investments, while having full flexibility to reconfigure their solution landscape based on current and future needs.
Consistent Sales and Audit Practices

Earlier we mentioned that the ambiguity of the legacy pricing model led to inconsistent sales and audit practices that ultimately shook some of our customer’s trust. While we believe that the majority of customer engagements are conducted in the right spirit of trust and customer orientation, the few exceptions were not acceptable.

SAP built its business on long-term, trusting relationships with its customers. To address this, we listened to extensive customer feedback and thoroughly reviewed our processes and practices around indirect access. As a result, SAP is introducing new organizational and governance changes to further consistency in our sales and audit practices.

Sales policy. To further transparent and consistent handling of customer engagements we’ve implemented a sales policy to address license audit and compliance situations. For example, we established sales behavior guidelines designed to have our SAP sales personnel inform customers about software usage rights, particularly in the context of indirect digital access, prior to a contract’s closing. We are committed to our customer’s trust and peace of mind and we are implementing governance guardrails, educating our teams to follow a consistent procedure, dis-incenting aggressive behavior, and we are also prepared to apply appropriate disciplinary actions when non-compliance to the new sales policies is uncovered.

Separation of license audit and sales. We are imposing a separation between license sales and license auditing, both from an organizational and from a process-governance perspective to promote objectivity and neutrality. Only the Global License Audit and Compliance (GLAC) organization will initiate, approve or terminate license audits.

Consistent and transparent audit procedures. The GLAC team will harmonize the end-to-end audit processes globally, from nomination to delivery of the license audit report. In each case, a customer will be informed of the scope, process and results of the audit.

Simplified license self-measurement and self-monitoring. We plan on making it easier for customers to self-monitor their license compliance by making available some of the tools used by our SAP license auditors. Our plans are to further enhance these measurement tools and improve their availability.

We believe that these changes will further global consistency of sales and audit practices to help customers get the best value from SAP solutions.

Predictable. Transparent. Consistent.

Our new licensing practices, new licensing rules of engagement for usage and compliance, and the new ERP pricing model address our customers’ concerns as they adopt digital technology. All together it is designed to provide a predictable, transparent and consistent approach to indirect access.

Special thanks to the SAP user groups (ASUG, DSAG, SUGEN), who tirelessly represented their user community in this process. We truly believe that this journey was more productive thanks to their engagement and contribution.

This has been a long journey working to transform decades old pricing policies that by all accounts are quite standard in the industry. SAP’s new ERP licensing for the digital age marks a major milestone that will shake up the software industry and raise the bar on software licensing practices, while putting customers first.

*ERP software in this context refers to legacy SAP ERP, SAP S/4HANA, and SAP S/4HANA Cloud.
**Indirect Static Read as defined in May 2017 is a scenario in which information has been exported from an SAP system (excluding SAP Business Warehouse or any third-party runtime database) to a non-SAP system pursuant to a predefined query that meets the criteria listed below. According to SAP policy, the use of such exported data in third-party non-SAP systems does not need to be licensed if the following criteria listed are met: 1) It was created by an individual licensed to use the SAP ERP system from which the information is being exported. 2) It runs automatically on a scheduled basis. The use of such exported information by the non-SAP systems and/or their users does not result in an update to the SAP ERP system’s processing capabilities.

The contents of this blog are for informational purposes only and provides general guidelines regarding SAP’s pricing models and policies as of April 2018. It is provided without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. This document shall not be incorporated into any contract and does not constitute a contract, an agreement or commitment to any specific terms, or an amendment or supplement to a customer’s contract. Policies and this document are subject to change without notice. Should a customer have questions, they should engage their SAP Account Executive. Pricing models and policies, and changes thereto, and any referenced contract terms are intended to provide a consistent, globally-applied filter to the licensing discussion. However, a customer’s situation and contract language may be different, and must be evaluated under their specific SAP contract. SAP reserves the right to revise its policies from time to time.

Categories: What's New

ERP Licensing for the Digital Age

SAP News - Tue, 04/10/2018 - 05:00
Shaking up the software industry by changing decades-old models.

SAP is shaking up the industry and raising the bar on software licensing practices by tackling ERP licensing for the digital age with new licensing practices, new rules of engagement for usage and compliance, and a new pricing model — all developed jointly with our customers, user groups, analysts, and influencers. Read about our journey of transforming ERP licensing for the digital age.

Old Licensing Models Not Fit for the Digital Age

For more than 40 years SAP has been helping companies run mission-critical business processes across all industries. Our ERP software* is at the heart of our customer’s business — the digital core behind their success. Customers have been finding new ways to extend the use of their digital core by giving access to business partners and consumers via third-party applications, and they are increasingly connecting to automated systems, IoT devices, and bots. It is exciting to witness all these digital age advances and how our customers are using enterprise software to transform their businesses. However, pricing models for enterprise software designed in the 20th century have remained relatively the same across the industry and are not optimal for this new type of digital access, which the industry has coined “indirect access.”

SAP’s ERP pricing model was designed for when our customer’s employees were expected to log directly into the SAP ERP to use it, and it was centered on identifying and licensing every individual using the software. This user-based pricing works well for direct human access because it is predictable and well understood. However, it is not easy to apply when the ERP system is used indirectly (e.g., by a user logging into another application that then uses the power of SAP Digital Core to execute the business process) or digitally (e.g., when a device or a bot uses the system, and not a human user). This has led to ambiguous interpretation of use and to unproductive discussions over what counts as users. The ambiguity has also led to inconsistent sales and audit practices that have ultimately shaken some of our customers’ trust.

Journey to Modernize ERP Pricing

At SAP the customer voice matters; when customers speak, SAP listens. We’ve heard loud and clear that businesses need certainty and that the current license model does not address digital access such as IoT devices and bots. They need predictability over their license commitments, transparency on their use, and consistency of sales and audit practices.

To address these concerns, we took an unconventional industry approach and we collaborated closely with user groups, customers, industry analysts and other stakeholders. Together we developed a “first-of-its-kind” outcome-based model for indirect digital access.

Our journey began over a year ago, and a major milestone was announced at SAPPHIRE NOW in 2017. We introduced a pricing model based on valuable outcomes delivered by the ERP system. This outcome-based approach eliminated the need to count individual users or other parties accessing SAP ERP via a third party system or interface for the two most common indirect access scenarios: order-to-cash and procure-to-pay. In addition, we announced that indirect static read** would be free of charge. That said, these 2017 pricing changes were our first step in the longer journey of modernizing our licensing policy, as it did not address every indirect access scenario, such as IoT devices, bots, or intelligent systems.

A New Pricing Model Fit for the Digital Age

In SAP’s legacy pricing model, both direct human access and indirect digital access are primarily licensed based on users. SAP has developed an outcome-based pricing model that differentiates between direct human access and indirect digital access. This new model is designed to address every conceivable indirect access scenario for the digital age. It was designed to provide customers the business certainty and predictability on their license commitment.

Indirect Digital Access ERP Pricing

The predictability of this new model begins with nine document types that represent system records of the most valued business outcomes from the ERP system. Use of the ERP system through indirect digital access will be licensed based on the initial creation of these documents, and the document license value is based on the total number of documents created. Let’s highlight elements of this model that customers will appreciate.

Outcome Focused. SAP is counting only nine document types that address the most valuable business outcomes. All other document types are not charged for.

Based on Value. Pay for system activity. The new model eliminates the need to count “users” accessing the ERP system and addresses concerns around access by IoT such as devices, bots, etc.

We also looked at many sources of data and models to come to the conclusion that not all documents are valued equally. Hence, our model has two different weights corresponding to their value. The most valued used documents are weighted at 100% (multiplier =1), and documents of lesser value and more frequently used are weighted at 20% (multiplier = 0.2).

Flexible and Transparent. What goes towards that total number of documents licensed?

  • Onetime create cost. SAP counts and charges for the creation of documents triggered via indirect digital access. All other operations, post-creation, on the document are included in the onetime create action cost.
  • Read, update, delete included. All read, updates, and delete actions on the document via indirect access do not incur a charge.
  • Interchangeable document capacity. The total number of documents licensed applies to any of the document types created, regardless of type.

Built-in Volume Discounts. Will I get a discount if I buy more? Of course, there is always a discount in matters of software sales. In our new model, we will offer tiered pricing where the higher the number of create document transactions, the lower the cost per document transacted. This model works well for all industry use cases from high volume businesses to low volume businesses

Measurable. Our new pricing model design goal was to provide an objective measurement of use, and to further support this, SAP plans to provide customers with tools to monitor and measure their ERP use. Customers should be able to manage their entitlements and consumption of licensees, and there should be no surprises during an audit.

What does this all mean? At this point, we’d like to point out the implications of this new indirect digital access ERP pricing policy with regards to some highly discussed topics.

  • Users: No more counting users or trying to define what constitutes a user via indirect access. It doesn’t matter how many users are accessing the ERP system via a third-party application.
  • IoT devices and Big Data concerns: Only if the IoT device triggers a create action in the ERP system will we count such transaction, all read, updates, deletes are included. Frequency or data volumes are inconsequential.
  • Indirect Static Read: This new pricing policy for indirect digital access of ERP goes above and beyond the Indirect Static Read** policy introduced in 2017. By the new policy definition, SAP only counts and charges for the creation of documents by the ERP system triggered by indirect digital access, therefore eliminating the need for a separate Indirect Static Read policy for ERP.

Direct Human and SAP Application Access to ERP Pricing

Direct human access to the digital core continues to be licensed based on users. No change there.

Access to the digital core by an SAP application is included in most SAP application’s license. SAP applications refer to line of business and industry applications, as well as SAP Solution Extensions. This policy does not apply to technology solutions such as database, SAP Cloud Platform, middleware integration, etc.

Opting In to the New Indirect Digital Access Pricing Model

All new SAP S/4HANA customers will have the ability to license the new indirect digital access model from the beginning. Existing SAP ERP on-premise customers can choose the path that’s right for them. They can continue with their existing user-based pricing for indirect access, in other words they can keep their status quo and do nothing. Or they can choose from two options that include the new document-based license model:

  • License Exchange. Customers wanting transparency for indirect digital access and wishing to remain with their existing contract may exchange the value of user and/or order licenses for Document licenses.
  • Contract Conversion. Customers licensing SAP S/4HANA may convert their existing contracts to a simplified contract, and receive up to 100% credit for their prior investments, while having full flexibility to reconfigure their solution landscape based on current and future needs.
Consistent Sales and Audit Practices

Earlier we mentioned that the ambiguity of the legacy pricing model led to inconsistent sales and audit practices that ultimately shook some of our customer’s trust. While we believe that the majority of customer engagements are conducted in the right spirit of trust and customer orientation, the few exceptions were not acceptable.

SAP built its business on long-term, trusting relationships with its customers. To address this, we listened to extensive customer feedback and thoroughly reviewed our processes and practices around indirect access. As a result, SAP is introducing new organizational and governance changes to further consistency in our sales and audit practices.

Sales policy. To further transparent and consistent handling of customer engagements we’ve implemented a sales policy to address license audit and compliance situations. For example, we established sales behavior guidelines designed to have our SAP sales personnel inform customers about software usage rights, particularly in the context of indirect digital access, prior to a contract’s closing. We are committed to our customer’s trust and peace of mind and we are implementing governance guardrails, educating our teams to follow a consistent procedure, dis-incenting aggressive behavior, and we are also prepared to apply appropriate disciplinary actions when non-compliance to the new sales policies is uncovered.

Separation of license audit and sales. We are imposing a separation between license sales and license auditing, both from an organizational and from a process-governance perspective to promote objectivity and neutrality. Only the Global License Audit and Compliance (GLAC) organization will initiate, approve or terminate license audits.

Consistent and transparent audit procedures. The GLAC team will harmonize the end-to-end audit processes globally, from nomination to delivery of the license audit report. In each case, a customer will be informed of the scope, process and results of the audit.

Simplified license self-measurement and self-monitoring. We plan on making it easier for customers to self-monitor their license compliance by making available some of the tools used by our SAP license auditors. Our plans are to further enhance these measurement tools and improve their availability.

We believe that these changes will further global consistency of sales and audit practices to help customers get the best value from SAP solutions.

Predictable. Transparent. Consistent.

Our new licensing practices, new licensing rules of engagement for usage and compliance, and the new ERP pricing model address our customers’ concerns as they adopt digital technology. All together it is designed to provide a predictable, transparent and consistent approach to indirect access.

Special thanks to the SAP user groups (ASUG, DSAG, SUGEN), who tirelessly represented their user community in this process. We truly believe that this journey was more productive thanks to their engagement and contribution.

This has been a long journey working to transform decades old pricing policies that by all accounts are quite standard in the industry. SAP’s new ERP licensing for the digital age marks a major milestone that will shake up the software industry and raise the bar on software licensing practices, while putting customers first.

*ERP software in this context refers to legacy SAP ERP, SAP S/4HANA, and SAP S/4HANA Cloud.
**Indirect Static Read as defined in May 2017 is a scenario in which information has been exported from an SAP system (excluding SAP Business Warehouse or any third-party runtime database) to a non-SAP system pursuant to a predefined query that meets the criteria listed below. According to SAP policy, the use of such exported data in third-party non-SAP systems does not need to be licensed if the following criteria listed are met: 1) It was created by an individual licensed to use the SAP ERP system from which the information is being exported. 2) It runs automatically on a scheduled basis. The use of such exported information by the non-SAP systems and/or their users does not result in an update to the SAP ERP system’s processing capabilities.

The contents of this blog are for informational purposes only and provides general guidelines regarding SAP’s pricing models and policies as of April 2018. It is provided without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. This document shall not be incorporated into any contract and does not constitute a contract, an agreement or commitment to any specific terms, or an amendment or supplement to a customer’s contract. Policies and this document are subject to change without notice. Should a customer have questions, they should engage their SAP Account Executive. Pricing models and policies, and changes thereto, and any referenced contract terms are intended to provide a consistent, globally-applied filter to the licensing discussion. However, a customer’s situation and contract language may be different, and must be evaluated under their specific SAP contract. SAP reserves the right to revise its policies from time to time.

Categories: What's New

SAP Unveils First-of-Its-Kind Pricing Model

SAP News - Tue, 04/10/2018 - 05:00
WALLDORF — Driven by unprecedented collaboration with user groups, customers, partners and industry analysts, SAP SE (NYSE: SAP) today announced a new sales, audit and pricing model for its Digital Access licensing policies commonly known as “Indirect Access.”
  • New approach, developed in consultation with user groups, focuses on transparency

The new approach makes it easier and more transparent for customers to use and pay for SAP software licenses. It also differentiates between Direct/Human and Indirect/Digital Access*, while clarifying the rules of engagement for licensing, usage and compliance.

New Pricing Model

The new model – a first of its kind for the enterprise software industry – addresses challenges faced by some customers when it comes to pricing for Indirect/Digital Access.

  • Historically, for most use cases, customers primarily had the option to pay for the SAP ERP application based on the number of users. As more systems began to access SAP software systems, this created a challenge for customers, who asked for an alternative pricing approach.
  • Moving forward, SAP will differentiate between:
    • Direct/Human access (existing), which will be charged for by number of human users.
    • Indirect/Digital Access: Access via third party, Internet of Things (IoT), bots and/or other digital access that can be licensed based on transactions/documents processed by the system itself (new).
  • SAP’s new model pertains to the digital core – SAP S/4HANA and SAP S/4HANA Cloud – as well as the SAP ERP application.
  • Existing customers can choose to remain on the current model or move to the new document-based pricing model – whichever best fits their SAP solutions and digital transformation initiatives.
  • Conversion offerings are available to help customers who choose to move from current pricing to the new model.

Clear Separation of License Sales from Audit and Compliance

SAP also introduced new organizational changes that separate license sales departments and procedures from auditing departments and procedures.

  • Customers and SAP have sometimes struggled to reconcile older commercial agreements with the requirements and outputs of modern digital activity levels. Combined with ongoing discussions regarding the procurement of new software, this can sometimes cause frustration.
  • Moving forward, the organizational change will allow the two conversations to develop independently of one another, empowering customers and SAP customer-facing professionals to collaborate more freely.
  • SAP plans to introduce features that will enable customers to measure their own usage and license consumption in a self-service manner.

Timeline and Additional Information

SAP began rollout of the new licensing, sales and audit policies in April 2018. SAP will continue to provide educational resources and tools for customers in the coming months to help them fully understand the new licensing approach and decide on the right model for them.

More Information

Perspective: SAP

Adaire Fox-Martin, Member of the Executive Board of SAP SE, Global Customer Operations
“SAP has been built on a legacy of trust, empathy and transparency with our customers. As the industry and customer requirements change, our legacy does not. Therefore, after thoroughly reviewing our processes and practices around Indirect Access – and based on extensive feedback from all stakeholders – we are rolling out a new and modern engagement model with our sales personnel that delivers industry-leading clarity. We are set on building lifelong relationships with our customers and we will continue to relentlessly innovate to ensure best business outcomes for each one of them.”

Christian Klein, COO and Member of the Executive Board of SAP SE, Global Business Operations
“We believe that especially in the age of digital transformation, an adjustment was necessary after listening to our customers. By offering a new pricing and licensing model, we provide enhanced transparency, predictability and consistency to our customers. I trust that these three aspects will encourage our customers to continue to invest in digital business models.”

Perspective: User Groups

Geoff Scott, CEO, Americas’ SAP Users’ Group (ASUG)
“I commend SAP for entering into an open and thoughtful dialog with its customers regarding licensing. We have made tremendous progress on many important topics that we are announcing today and providing additional details and insight in the coming days. I am looking forward to hearing the feedback from the community as we continue this important journey with SAP.”

Andreas Oczko, Board Member Operations, Service & Support; Deputy Chairman of the Management Board; German-Speaking SAP User Group (DSAG)
“The reorganization of pricing model, sales, license audits and compliance announced by SAP is the remarkable consequence of intensive workshops and discussions with DSAG. With the help of the SAP Executive Board, we developed a vision for indirect use in the future and formulated the key data for a new licensing model. This is an important first step toward removing stumbling blocks and obstacles from the path of digital transformation. More will follow. SAP and DSAG continue to work together on an unprecedented pricing model for the Internet of Things.”

Gianmaria Perancin, Chairman of SAP User Group Executive Network (SUGEN) and the French-Speaking SAP User Group (USF)
“We applaud SAP for bringing to market this new model that should bring transparency and simplicity to customers for future SAP software use cases. There is further work to do to demonstrate to customers that the new model will be cost-neutral for their existing use cases. Customers need reassurance that if they believed they were correctly licensed, due to factors such as discussions or communication with SAP or ambiguous contract clauses, they will not face new license costs.”

Perspective: Industry Analysts

R “Ray” Wang, CEO, Constellation Research
“Digital transformation has driven every organization to rethink how they create business value for their customers. As enterprises transform their business models from selling products to services, services to experiences, and experiences to outcomes, they evolve their pricing models. Enterprise software vendors not only seek to modernize their pricing to meet the shifts to outcomes-based pricing, but also must find models to allow customers to stay the course, receive value for their existing investments and convert to new business models in a fair and equitable manner to their customers.”

Visit the SAP News Center. Follow SAP on Twitter at @sapnews.

About SAP

As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 378,000 business and public-sector customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

Note to editors:
To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. To view video stories on diverse topics, visit www.sap-tv.com. From this site, you can embed videos into your own Web pages, share video via email links, and subscribe to RSS feeds from SAP TV.

For customers interested in learning more about SAP products:
Global Customer Center: +49 180 534-34-24
United States Only: 1 (800) 872-1SAP (1-800-872-1727)

For more information, press only:
Rajiv Sekhri, +49 6227 7-4871, rajiv.sekhri@sap.com, CET
Hilmar Schepp, +49 6227 7-46799, hilmar.schepp@sap.com, CET
Andy Kendzie, +1 (202) 312-3919, andy.kendzie@sap.com, ET
James Dever, +1 610 661-2161, james.dever@sap.com, ET
SAP News Center press room; press@sap.com

*Direct/Human Access occurs when people log on to use the SAP Digital Core by way of an interface delivered with or as a part of the SAP software. Indirect/Digital Access occurs when devices, bots, automated systems, etc. directly access the Digital Core. It also occurs when humans, or any device or systems indirectly use the Digital Core via a non-SAP intermediary software, such as a non-SAP front-end, a custom-solution, or a third-party application.
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
© 2018 SAP SE. All rights reserved.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

Categories: What's New

SAP Unveils First-of-Its-Kind Pricing Model

SAP News - Tue, 04/10/2018 - 05:00
WALLDORF — Driven by unprecedented collaboration with user groups, customers, partners and industry analysts, SAP SE (NYSE: SAP) today announced a new sales, audit and pricing model for its Digital Access licensing policies commonly known as “Indirect Access.”
  • New approach, developed in consultation with user groups, focuses on transparency

The new approach makes it easier and more transparent for customers to use and pay for SAP software licenses. It also differentiates between Direct/Human and Indirect/Digital Access*, while clarifying the rules of engagement for licensing, usage and compliance.

New Pricing Model

The new model – a first of its kind for the enterprise software industry – addresses challenges faced by some customers when it comes to pricing for Indirect/Digital Access.

  • Historically, for most use cases, customers primarily had the option to pay for the SAP ERP application based on the number of users. As more systems began to access SAP software systems, this created a challenge for customers, who asked for an alternative pricing approach.
  • Moving forward, SAP will differentiate between:
    • Direct/Human access (existing), which will be charged for by number of human users.
    • Indirect/Digital Access: Access via third party, Internet of Things (IoT), bots and/or other digital access that can be licensed based on transactions/documents processed by the system itself (new).
  • SAP’s new model pertains to the digital core – SAP S/4HANA and SAP S/4HANA Cloud – as well as the SAP ERP application.
  • Existing customers can choose to remain on the current model or move to the new document-based pricing model – whichever best fits their SAP solutions and digital transformation initiatives.
  • Conversion offerings are available to help customers who choose to move from current pricing to the new model.

Clear Separation of License Sales from Audit and Compliance

SAP also introduced new organizational changes that separate license sales departments and procedures from auditing departments and procedures.

  • Customers and SAP have sometimes struggled to reconcile older commercial agreements with the requirements and outputs of modern digital activity levels. Combined with ongoing discussions regarding the procurement of new software, this can sometimes cause frustration.
  • Moving forward, the organizational change will allow the two conversations to develop independently of one another, empowering customers and SAP customer-facing professionals to collaborate more freely.
  • SAP plans to introduce features that will enable customers to measure their own usage and license consumption in a self-service manner.

Timeline and Additional Information

SAP began rollout of the new licensing, sales and audit policies in April 2018. SAP will continue to provide educational resources and tools for customers in the coming months to help them fully understand the new licensing approach and decide on the right model for them.

More Information

Perspective: SAP

Adaire Fox-Martin, Member of the Executive Board of SAP SE, Global Customer Operations
“SAP has been built on a legacy of trust, empathy and transparency with our customers. As the industry and customer requirements change, our legacy does not. Therefore, after thoroughly reviewing our processes and practices around Indirect Access – and based on extensive feedback from all stakeholders – we are rolling out a new and modern engagement model with our sales personnel that delivers industry-leading clarity. We are set on building lifelong relationships with our customers and we will continue to relentlessly innovate to ensure best business outcomes for each one of them.”

Christian Klein, COO and Member of the Executive Board of SAP SE, Global Business Operations
“We believe that especially in the age of digital transformation, an adjustment was necessary after listening to our customers. By offering a new pricing and licensing model, we provide enhanced transparency, predictability and consistency to our customers. I trust that these three aspects will encourage our customers to continue to invest in digital business models.”

Perspective: User Groups

Geoff Scott, CEO, Americas’ SAP Users’ Group (ASUG)
“I commend SAP for entering into an open and thoughtful dialog with its customers regarding licensing. We have made tremendous progress on many important topics that we are announcing today and providing additional details and insight in the coming days. I am looking forward to hearing the feedback from the community as we continue this important journey with SAP.”

Andreas Oczko, Board Member Operations, Service & Support; Deputy Chairman of the Management Board; German-Speaking SAP User Group (DSAG)
“The reorganization of pricing model, sales, license audits and compliance announced by SAP is the remarkable consequence of intensive workshops and discussions with DSAG. With the help of the SAP Executive Board, we developed a vision for indirect use in the future and formulated the key data for a new licensing model. This is an important first step toward removing stumbling blocks and obstacles from the path of digital transformation. More will follow. SAP and DSAG continue to work together on an unprecedented pricing model for the Internet of Things.”

Gianmaria Perancin, Chairman of SAP User Group Executive Network (SUGEN) and the French-Speaking SAP User Group (USF)
“We applaud SAP for bringing to market this new model that should bring transparency and simplicity to customers for future SAP software use cases. There is further work to do to demonstrate to customers that the new model will be cost-neutral for their existing use cases. Customers need reassurance that if they believed they were correctly licensed, due to factors such as discussions or communication with SAP or ambiguous contract clauses, they will not face new license costs.”

Perspective: Industry Analysts

R “Ray” Wang, CEO, Constellation Research
“Digital transformation has driven every organization to rethink how they create business value for their customers. As enterprises transform their business models from selling products to services, services to experiences, and experiences to outcomes, they evolve their pricing models. Enterprise software vendors not only seek to modernize their pricing to meet the shifts to outcomes-based pricing, but also must find models to allow customers to stay the course, receive value for their existing investments and convert to new business models in a fair and equitable manner to their customers.”

Visit the SAP News Center. Follow SAP on Twitter at @sapnews.

About SAP

As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 378,000 business and public-sector customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

Note to editors:
To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. To view video stories on diverse topics, visit www.sap-tv.com. From this site, you can embed videos into your own Web pages, share video via email links, and subscribe to RSS feeds from SAP TV.

For customers interested in learning more about SAP products:
Global Customer Center: +49 180 534-34-24
United States Only: 1 (800) 872-1SAP (1-800-872-1727)

For more information, press only:
Rajiv Sekhri, +49 6227 7-4871, rajiv.sekhri@sap.com, CET
Hilmar Schepp, +49 6227 7-46799, hilmar.schepp@sap.com, CET
Andy Kendzie, +1 (202) 312-3919, andy.kendzie@sap.com, ET
James Dever, +1 610 661-2161, james.dever@sap.com, ET
SAP News Center press room; press@sap.com

*Direct/Human Access occurs when people log on to use the SAP Digital Core by way of an interface delivered with or as a part of the SAP software. Indirect/Digital Access occurs when devices, bots, automated systems, etc. directly access the Digital Core. It also occurs when humans, or any device or systems indirectly use the Digital Core via a non-SAP intermediary software, such as a non-SAP front-end, a custom-solution, or a third-party application.
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
© 2018 SAP SE. All rights reserved.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

Categories: What's New

Inspiring Our Future Through a History of Purpose

SAP News - Mon, 04/09/2018 - 09:30
At SAP, our founding purpose is to build technology that helps customers improve the economy, the environment, and society as whole — to ultimately help the world run better and improve people’s lives.

That relationship has guided our spirit of innovation over the last 46 years. It has driven us to develop tools powering conservation efforts in Africa and to find new ways to increase transparency in the supply chain in order to end forced labor. Our SAP history is rich with examples like these, and it offers a roadmap that we will continue to follow.

Purpose is ingrained in the DNA of SAP

When I started my role as chief marketing officer eight months ago, one of the first things I noticed was the amazing story we had as a brand, but how we often struggled in how to tell it. Purpose has always been ingrained in the DNA of SAP, yet it seemed missing from the way we communicate with our employees and our entire global community. I truly believe a brand is only as strong as its story, so I made it my goal to bring this back to the forefront.

Today, it’s an honor for me to reveal our renewed brand narrative, which places our history of purpose-driven innovation front and center to better define our mission of improving people’s lives through technology. As we’ve engaged with employees, customers, partners, and many stakeholders, we’ve realized that there is no anchor that speaks more to the core, culture, and values of what it means to run SAP than purpose. Our long-time partners and customers will recognize much of what we’ll be communicating — as this framework was designed as a natural reflection of who we are as a company at our inception — but the way we tell it has evolved.

Part of our ability to tell this story authentically, relies on rethinking the way we build connections. In today’s environment, where purpose has become the No. 1 driver of brand value, organizations need to be more audience inclusive. Rather than differentiate between B2B or B2C, brands need to recognize that everyone is a consumer with their own capacity for making an emotional connection to a business. For decades, SAP has been most comfortable owning how we support what underpins the good being done in this world. We intend on taking a new role in championing our customer successes in a way that speaks to everyone.

Each of the 89,000 employees at SAP has their own purpose, their own story to tell

According to EY, 87 percent of business leaders believe that companies perform best over time if purpose goes beyond profit. Yet, this is entirely dependent on whether you see purpose as a strategic initiative or a marketing initiative. Long-term success requires buy-in from the entire organization; it needs to be a movement. Each of the 89,000 employees at SAP has their own purpose, their own story to tell. It was mission-critical for us that they saw their values and priorities reflected in this narrative, so we spent several months in the trenches with our employees before revealing our story today.

As a marketer, it’s especially humbling to lead this endeavor. We have a responsibility to effectively communicate the narrative of our company and show why what we do matters in today’s world. It’s been an incredible opportunity to be able to craft a story that reflects what consumers are after today: truth, authenticity, and companies that have courage. With all the voices and opinions that are out there, companies today must have a voice that is reflective of what we enable and what we believe in.

In the coming weeks, expect to see new stories and examples of SAP partnerships and the purpose we drive. We’ll be launching new cross-medium campaigns — a total top-to-bottom refresh, so stay tuned! In the meantime, you can find an advanced preview below, including our latest television spot featuring Clive Owen.

Interested in learning more about the brand narrative? Find me at @aliciatillman.

Alicia Tillman is chief marketing officer at SAP.

Categories: What's New

Inspiring Our Future Through a History of Purpose

SAP News - Mon, 04/09/2018 - 09:30
At SAP, our founding purpose is to build technology that helps customers improve the economy, the environment, and society as whole — to ultimately help the world run better and improve people’s lives.

That relationship has guided our spirit of innovation over the last 46 years. It has driven us to develop tools powering conservation efforts in Africa and to find new ways to increase transparency in the supply chain in order to end forced labor. Our SAP history is rich with examples like these, and it offers a roadmap that we will continue to follow.

Purpose is ingrained in the DNA of SAP

When I started my role as chief marketing officer eight months ago, one of the first things I noticed was the amazing story we had as a brand, but how we often struggled in how to tell it. Purpose has always been ingrained in the DNA of SAP, yet it seemed missing from the way we communicate with our employees and our entire global community. I truly believe a brand is only as strong as its story, so I made it my goal to bring this back to the forefront.

Today, it’s an honor for me to reveal our renewed brand narrative, which places our history of purpose-driven innovation front and center to better define our mission of improving people’s lives through technology. As we’ve engaged with employees, customers, partners, and many stakeholders, we’ve realized that there is no anchor that speaks more to the core, culture, and values of what it means to run SAP than purpose. Our long-time partners and customers will recognize much of what we’ll be communicating — as this framework was designed as a natural reflection of who we are as a company at our inception — but the way we tell it has evolved.

Part of our ability to tell this story authentically, relies on rethinking the way we build connections. In today’s environment, where purpose has become the No. 1 driver of brand value, organizations need to be more audience inclusive. Rather than differentiate between B2B or B2C, brands need to recognize that everyone is a consumer with their own capacity for making an emotional connection to a business. For decades, SAP has been most comfortable owning how we support what underpins the good being done in this world. We intend on taking a new role in championing our customer successes in a way that speaks to everyone.

Each of the 89,000 employees at SAP has their own purpose, their own story to tell

According to EY, 87 percent of business leaders believe that companies perform best over time if purpose goes beyond profit. Yet, this is entirely dependent on whether you see purpose as a strategic initiative or a marketing initiative. Long-term success requires buy-in from the entire organization; it needs to be a movement. Each of the 89,000 employees at SAP has their own purpose, their own story to tell. It was mission-critical for us that they saw their values and priorities reflected in this narrative, so we spent several months in the trenches with our employees before revealing our story today.

As a marketer, it’s especially humbling to lead this endeavor. We have a responsibility to effectively communicate the narrative of our company and show why what we do matters in today’s world. It’s been an incredible opportunity to be able to craft a story that reflects what consumers are after today: truth, authenticity, and companies that have courage. With all the voices and opinions that are out there, companies today must have a voice that is reflective of what we enable and what we believe in.

In the coming weeks, expect to see new stories and examples of SAP partnerships and the purpose we drive. We’ll be launching new cross-medium campaigns — a total top-to-bottom refresh, so stay tuned! In the meantime, you can find an advanced preview below, including our latest television spot featuring Clive Owen.

Interested in learning more about the brand narrative? Find me at @aliciatillman.

Alicia Tillman is chief marketing officer at SAP.

Categories: What's New

Accenture Cloud Platform Awarded US Patent for Analytics-Based Multi-Cloud Tagging Capabilities

Accenture News - Mon, 04/09/2018 - 08:59
NEW YORK; April 9, 2018 – Accenture (NYSE: ACN) has been granted a patent by the United States Patent and Trademark Office for analytics-based multi-cloud tagging capabilities of the Accenture Cloud Platform (ACP).
Categories: What's New

How Startups Power PepsiCo’s Innovation Strategy

SAP News - Fri, 04/06/2018 - 10:00
Innovation in large enterprises once occurred over the course of decades, but today, that’s a luxury many enterprises no longer have. In 1965, the average company on the S&P 500 remained for 33 years. By 1990 it shrunk to 20 years, and by 2026, it’s expected to shrink to 14 years.

Rapid innovation is a prerequisite for survival.

Yet, many say enterprises don’t have what it takes. They take too long to adopt solutions and get bogged down by legacy systems. Their progress is incremental rather than disruptive.

But the biggest companies in the world aren’t sitting still. They can be catalysts for innovation and first adopters of new technology, if they understand how to create a framework for innovation within their company. At Sapphire, we collaborate regularly with corporate innovators that seek to navigate dynamic new ecosystems often populated by disruptive startups and emerging technologies.

Shakti Jauhar, head of Global HR Operations and Shared Service at PepsiCo, talks about the importance of constant innovation and created a program that helps his team evaluate and bring in new technology innovations from startups in the HR space. Called the 90/90, the program has seen early success, so I sat down with Shakti to learn more about the framework he uses to speed up startup collaboration — one that any enterprise can leverage to make fast-moving innovation part of their ethos.

Below is an excerpt from our conversation in which Shakti shares the initial steps a company should take to create a framework for working with startups.

Step 1: Create Alignment and Agree on Objectives

This first step may seem obvious, but is often overlooked. Misalignment can and will kill every attempt to innovate in the enterprise. Enterprises are complex machines that rely on many systems running in tandem. If the legal team, IT department and procurement each have conflicting priorities, it will be difficult to succeed. With the increasing trend of business driving tech adoption independent of IT, CXOs would also do well to align closely with CIOs and IT leadership on questions of specific innovation priorities, where to partner vs. build, speed of adoption, appetite for technological risk and so on.

At PepsiCo, an important alignment step is to identify a need or areas of opportunity and then present them to the startup and innovation communities for solutions. Problem statements ranged from CoEs looking to implement a new program to efficiency plays. Every six to nine months, the team would identify a small group of startups and invite them to gain alignment with stakeholders aligned to the agreed-upon problem statements. This alignment is a key enabler in the eventual success of startups graduating through the program.

Achieving alignment will put in place a realistic understanding both of what is possible and how it will play out across an organization. Working out internal problems is the foundation of an internal framework for innovation and CXOs should do this well before they bring startups into the equation.

Step 2: Ready Internal Infrastructure and Platforms

Another critical step is reviewing the infrastructure that a company has in place and updating it if necessary. As a key first step, PepsiCo has re-architected its core HR system onto a single platform across 83 countries for ~260,000 employees. This, along with other technology deployments enabled it to create the equivalent of a “plug and play” system, where new solutions could be adopted into the core platform.

Allowing some experimentation on this platform can also be an enabler of startup success. For example, partners adopted some of the ideas for startups where they have launched an app store or made an environment available for Startups to write their own APIs into an HR platform. Taking a platform-based approach has been a holy grail in the enterprise for some time, and for PepsiCo HR this infrastructure is a key ingredient to accelerate serving up innovation at scale for employees.

Step 3: Build a Blueprint

The next step is to create a blueprint which enables finding, incorporating and scaling new processes. This allows enterprises to lock in their ability to innovate for years to come and continually work with the best emerging startups in their field.

As part of the 90/90 program, participating startups commit 90 days to both deploy their solution within PepsiCo and demonstrate their ROI. This provides a clear framework for all parties to quickly evaluate success. That means PepsiCo is evaluating solutions based on how they drive broader business goals and address problem statements. For the startups, that means quickly assessing their readiness to scale to enterprise grade.

To assemble a system for scaling innovation by partnering with startups, enterprises should:

  • Use their connections with VC firms, founders and angel investors to scout partnership opportunities. For example, PepsiCo’s partnership with Sapphire Ventures has exposed the company to a wide range of startups and emerging technologies that fuel its innovation roadmap.
  • Specify a hard timeline for testing innovation and partnerships. This helps focus the system on accomplishing set goals. It also standardizes the process for bringing on new tech, making it repeatable.
  • Focus on finding fit. When dealing with a shorter timeframe, like the 90/90 framework, big investments are not necessary. The real ROI might come from finding something that continually pays for itself in a short time.

The goal in making a blueprint for a framework like 90/90 is to keep things moving for the enterprise and to make partnerships easier by laying out a clear vision of how successful adoption of new technology will work out.

Step 4: Lean All The Way In

Setting the wheels of innovation in motion is only half of the work in a program like this. The other half is building long-term relationships with the best new companies out there. The companies that find success in a startup-enterprise relationship are open, proactive and willing to make an investment beyond the short-term.

Enterprises also need to keep a close eye on the startups in their industry. But when so many startups fail, enterprises can be wary of spending too much time trying to dissect the space.

That’s a huge mistake. Yes, many startups don’t survive. But, over time, startups will evolve the way organizations think about innovation and agility. And ultimately one of them will end up disrupting business in a way that will be unprecedented. Leaders need to be paying close attention to their market to stay on that curve.

Set Up for Success

It’s up to large enterprises to carve out their own future. In today’s world, that means finding ways to innovate at high speeds. Although they certainly have more to coordinate than smaller companies, this doesn’t mean they’re doomed to lag behind.

Instead, savvy global enterprises like PepsiCo, are putting themselves on the forefront of innovation in their industry. They’re building long-term partnerships within the startup and venture communities, and creating a way for innovation to regularly cycle through their companies. They’re streamlining their internal processes to scale novel solutions and as they’re doing these things, they’re securing the legacy of their company for years to come.

Rami Branitzky is managing director of Sapphire Ventures.

This story originally appeared on Sapphire Ventures Perspectives on Medium.

Categories: What's New

How Startups Power PepsiCo’s Innovation Strategy

SAP News - Fri, 04/06/2018 - 10:00
Innovation in large enterprises once occurred over the course of decades, but today, that’s a luxury many enterprises no longer have. In 1965, the average company on the S&P 500 remained for 33 years. By 1990 it shrunk to 20 years, and by 2026, it’s expected to shrink to 14 years.

Rapid innovation is a prerequisite for survival.

Yet, many say enterprises don’t have what it takes. They take too long to adopt solutions and get bogged down by legacy systems. Their progress is incremental rather than disruptive.

But the biggest companies in the world aren’t sitting still. They can be catalysts for innovation and first adopters of new technology, if they understand how to create a framework for innovation within their company. At Sapphire, we collaborate regularly with corporate innovators that seek to navigate dynamic new ecosystems often populated by disruptive startups and emerging technologies.

Shakti Jauhar, head of Global HR Operations and Shared Service at PepsiCo, talks about the importance of constant innovation and created a program that helps his team evaluate and bring in new technology innovations from startups in the HR space. Called the 90/90, the program has seen early success, so I sat down with Shakti to learn more about the framework he uses to speed up startup collaboration — one that any enterprise can leverage to make fast-moving innovation part of their ethos.

Below is an excerpt from our conversation in which Shakti shares the initial steps a company should take to create a framework for working with startups.

Step 1: Create Alignment and Agree on Objectives

This first step may seem obvious, but is often overlooked. Misalignment can and will kill every attempt to innovate in the enterprise. Enterprises are complex machines that rely on many systems running in tandem. If the legal team, IT department and procurement each have conflicting priorities, it will be difficult to succeed. With the increasing trend of business driving tech adoption independent of IT, CXOs would also do well to align closely with CIOs and IT leadership on questions of specific innovation priorities, where to partner vs. build, speed of adoption, appetite for technological risk and so on.

At PepsiCo, an important alignment step is to identify a need or areas of opportunity and then present them to the startup and innovation communities for solutions. Problem statements ranged from CoEs looking to implement a new program to efficiency plays. Every six to nine months, the team would identify a small group of startups and invite them to gain alignment with stakeholders aligned to the agreed-upon problem statements. This alignment is a key enabler in the eventual success of startups graduating through the program.

Achieving alignment will put in place a realistic understanding both of what is possible and how it will play out across an organization. Working out internal problems is the foundation of an internal framework for innovation and CXOs should do this well before they bring startups into the equation.

Step 2: Ready Internal Infrastructure and Platforms

Another critical step is reviewing the infrastructure that a company has in place and updating it if necessary. As a key first step, PepsiCo has re-architected its core HR system onto a single platform across 83 countries for ~260,000 employees. This, along with other technology deployments enabled it to create the equivalent of a “plug and play” system, where new solutions could be adopted into the core platform.

Allowing some experimentation on this platform can also be an enabler of startup success. For example, partners adopted some of the ideas for startups where they have launched an app store or made an environment available for Startups to write their own APIs into an HR platform. Taking a platform-based approach has been a holy grail in the enterprise for some time, and for PepsiCo HR this infrastructure is a key ingredient to accelerate serving up innovation at scale for employees.

Step 3: Build a Blueprint

The next step is to create a blueprint which enables finding, incorporating and scaling new processes. This allows enterprises to lock in their ability to innovate for years to come and continually work with the best emerging startups in their field.

As part of the 90/90 program, participating startups commit 90 days to both deploy their solution within PepsiCo and demonstrate their ROI. This provides a clear framework for all parties to quickly evaluate success. That means PepsiCo is evaluating solutions based on how they drive broader business goals and address problem statements. For the startups, that means quickly assessing their readiness to scale to enterprise grade.

To assemble a system for scaling innovation by partnering with startups, enterprises should:

  • Use their connections with VC firms, founders and angel investors to scout partnership opportunities. For example, PepsiCo’s partnership with Sapphire Ventures has exposed the company to a wide range of startups and emerging technologies that fuel its innovation roadmap.
  • Specify a hard timeline for testing innovation and partnerships. This helps focus the system on accomplishing set goals. It also standardizes the process for bringing on new tech, making it repeatable.
  • Focus on finding fit. When dealing with a shorter timeframe, like the 90/90 framework, big investments are not necessary. The real ROI might come from finding something that continually pays for itself in a short time.

The goal in making a blueprint for a framework like 90/90 is to keep things moving for the enterprise and to make partnerships easier by laying out a clear vision of how successful adoption of new technology will work out.

Step 4: Lean All The Way In

Setting the wheels of innovation in motion is only half of the work in a program like this. The other half is building long-term relationships with the best new companies out there. The companies that find success in a startup-enterprise relationship are open, proactive and willing to make an investment beyond the short-term.

Enterprises also need to keep a close eye on the startups in their industry. But when so many startups fail, enterprises can be wary of spending too much time trying to dissect the space.

That’s a huge mistake. Yes, many startups don’t survive. But, over time, startups will evolve the way organizations think about innovation and agility. And ultimately one of them will end up disrupting business in a way that will be unprecedented. Leaders need to be paying close attention to their market to stay on that curve.

Set Up for Success

It’s up to large enterprises to carve out their own future. In today’s world, that means finding ways to innovate at high speeds. Although they certainly have more to coordinate than smaller companies, this doesn’t mean they’re doomed to lag behind.

Instead, savvy global enterprises like PepsiCo, are putting themselves on the forefront of innovation in their industry. They’re building long-term partnerships within the startup and venture communities, and creating a way for innovation to regularly cycle through their companies. They’re streamlining their internal processes to scale novel solutions and as they’re doing these things, they’re securing the legacy of their company for years to come.

Rami Branitzky is managing director of Sapphire Ventures.

This story originally appeared on Sapphire Ventures Perspectives on Medium.

Categories: What's New

Diversity and Inclusion: Four Ways to Make a Difference

SAP News - Thu, 04/05/2018 - 11:15
To mark this year’s International Women’s Day last month, I had the pleasure of opening an event organized jointly by Innovation Norway, the Norwegian Government’s most important instrument for innovation and the development of Norwegian enterprises and industry, SAP, and UN Women.

As part of the Women in Data Science (WiDS) global event series, it was one of more than 30 events that are being hosted by SAP Next-Gen in 2018.

While reflecting prior to the event, I thought about the progress that has been made so far with regards to gender equality. I strongly believe that gender parity is fundamental to the success of our global economy and society: it is an essential means to ensure growth, competitiveness, and the future-readiness of economies and businesses worldwide. Empowering women and girls is also key to achieving all 17 of the United Nations Sustainable Development Goals by 2030 – goals to which SAP is firmly committed.

Progress has without doubt been made: we see female leaders all over the world and much has been done to break the structural, cultural, and organizational barriers that constitute the glass ceiling – but we are still far from achieving full gender parity, equality, and inclusion. The 2017 Global Gender Gap Report estimates it will be another 217 years before we achieve gender parity, given current rates of change.

With 25 percent women in management, and 32.9 percent women in the workforce, I believe that SAP is on the right track when it comes to supporting gender parity. However, there is always potential to improve further, and we still have a way to go. The event at Hudson Yards was only one of the many great opportunities to help us do exactly that. Bringing together entrepreneurs, investors and thought leaders to address financial inclusion, blockchain technology, and investments in female entrepreneurs as key drivers for transformative change, the line-up of attendees and speakers was truly impressive.

Moving the Needle on Gender Parity and Inclusion

Her Royal Highness Crown Princess Mette Marit of Norway also spoke at the opening. The Nordic countries – Denmark, Finland, Iceland, Norway, and Sweden – can be characterized as global leaders when it comes to overall gender equality in society. However, while women make up almost 50 percent of the employed population in Norway, they represent around just 25 percent of the entrepreneurs – a challenge that, as she explained, the country needs to tackle.

Phumzile Mlambo-Ngcuka, executive director of UN Women, spoke about meaningful innovation and the purpose-driven use of technology. Her focus on how to use technology to help people clearly shares common ground with our company vision to help the world run better and improve people’s lives. Next on stage was former NFL player Wade Davis. Working mostly with men in the sports industry, he stressed the importance of advancing change and gender equality. During his talk, there was one statement that particularly stuck out for me: Wade explained that men should care about this issue not because they have a sister, mother, or daughter, but because patriarchy creates an unjust system that oppresses people from minorities, including, of course, the LGBT community.

The whole event was simply amazing, and I am very proud of the many different activities taking place to foster diversity and inclusion, both within SAP and beyond. There are numerous statistics and reports that show why this is so important for companies and indeed our economy and society as a whole. A survey for the New York-based Center for Talent Innovation found that companies that had “two-dimensional diversity” – that is, diversity in terms of race, gender, sexuality, or other inherent traits on the one hand and “acquired diversity”, such as language skills or a global mindset, on the other – are 70 percent more likely to capture new markets. What is more, according to a report by McKinsey, ethnically diverse companies are 35 percent more likely to have financial returns above their industry average.

Awareness as an Essential Prerequisite for Change

Winning new markets and performing competitively are, obviously, key to any company’s success. Since we know the positive impact diversity and inclusion can have on a business, our economy, and our society, it’s clearly a win-win situation for all involved to promote diversity and inclusion. But advancing diversity and inclusion is a matter of culture – and just as International Women’s Day goes far beyond March 8, fostering a truly diverse and inclusive culture is about making a difference every day.

Here are four things that you can do to make that difference:

  • Talk about the elephant in the room: If you’re hiring for a tech or leadership position and you don’t have a diverse set of applicants or if you’re planning an event and there’s a lack of diversity among the speakers, don’t just accept it as a given – speak up about it.
  • Be aware of unconscious bias: No matter how unbiased we think we are, we may have subconscious negative opinions about people from certain social groups. Recognize the patterns of your own behavior, be more aware of your own biases, and develop plans that make the most of the talents and abilities of your team members.
  • Listen to improve: We are never 100% aware of our own biases, that’s why listening to colleagues and employees helps us improve. Sometimes it might be uncomfortable to hear that not all of our employees enjoy the same opportunities, but you can only take the necessary steps to correct this situation if you truly understand it.
  • Encourage and support change advocates: You will find advocates of diversity and inclusion at all levels and in all areas of a company. Encourage and empower them. Change doesn’t just happen at the top, it’s an organic process that needs to take place across all levels of the organization.

Bernd Leukert is a member of the Executive Board of SAP SE.

This story originally appeared on Business Trends on the SAP Community.

Categories: What's New

Diversity and Inclusion: Four Ways to Make a Difference

SAP News - Thu, 04/05/2018 - 11:15
To mark this year’s International Women’s Day last month, I had the pleasure of opening an event organized jointly by Innovation Norway, the Norwegian Government’s most important instrument for innovation and the development of Norwegian enterprises and industry, SAP, and UN Women.

As part of the Women in Data Science (WiDS) global event series, it was one of more than 30 events that are being hosted by SAP Next-Gen in 2018.

While reflecting prior to the event, I thought about the progress that has been made so far with regards to gender equality. I strongly believe that gender parity is fundamental to the success of our global economy and society: it is an essential means to ensure growth, competitiveness, and the future-readiness of economies and businesses worldwide. Empowering women and girls is also key to achieving all 17 of the United Nations Sustainable Development Goals by 2030 – goals to which SAP is firmly committed.

Progress has without doubt been made: we see female leaders all over the world and much has been done to break the structural, cultural, and organizational barriers that constitute the glass ceiling – but we are still far from achieving full gender parity, equality, and inclusion. The 2017 Global Gender Gap Report estimates it will be another 217 years before we achieve gender parity, given current rates of change.

With 25 percent women in management, and 32.9 percent women in the workforce, I believe that SAP is on the right track when it comes to supporting gender parity. However, there is always potential to improve further, and we still have a way to go. The event at Hudson Yards was only one of the many great opportunities to help us do exactly that. Bringing together entrepreneurs, investors and thought leaders to address financial inclusion, blockchain technology, and investments in female entrepreneurs as key drivers for transformative change, the line-up of attendees and speakers was truly impressive.

Moving the Needle on Gender Parity and Inclusion

Her Royal Highness Crown Princess Mette Marit of Norway also spoke at the opening. The Nordic countries – Denmark, Finland, Iceland, Norway, and Sweden – can be characterized as global leaders when it comes to overall gender equality in society. However, while women make up almost 50 percent of the employed population in Norway, they represent around just 25 percent of the entrepreneurs – a challenge that, as she explained, the country needs to tackle.

Phumzile Mlambo-Ngcuka, executive director of UN Women, spoke about meaningful innovation and the purpose-driven use of technology. Her focus on how to use technology to help people clearly shares common ground with our company vision to help the world run better and improve people’s lives. Next on stage was former NFL player Wade Davis. Working mostly with men in the sports industry, he stressed the importance of advancing change and gender equality. During his talk, there was one statement that particularly stuck out for me: Wade explained that men should care about this issue not because they have a sister, mother, or daughter, but because patriarchy creates an unjust system that oppresses people from minorities, including, of course, the LGBT community.

The whole event was simply amazing, and I am very proud of the many different activities taking place to foster diversity and inclusion, both within SAP and beyond. There are numerous statistics and reports that show why this is so important for companies and indeed our economy and society as a whole. A survey for the New York-based Center for Talent Innovation found that companies that had “two-dimensional diversity” – that is, diversity in terms of race, gender, sexuality, or other inherent traits on the one hand and “acquired diversity”, such as language skills or a global mindset, on the other – are 70 percent more likely to capture new markets. What is more, according to a report by McKinsey, ethnically diverse companies are 35 percent more likely to have financial returns above their industry average.

Awareness as an Essential Prerequisite for Change

Winning new markets and performing competitively are, obviously, key to any company’s success. Since we know the positive impact diversity and inclusion can have on a business, our economy, and our society, it’s clearly a win-win situation for all involved to promote diversity and inclusion. But advancing diversity and inclusion is a matter of culture – and just as International Women’s Day goes far beyond March 8, fostering a truly diverse and inclusive culture is about making a difference every day.

Here are four things that you can do to make that difference:

  • Talk about the elephant in the room: If you’re hiring for a tech or leadership position and you don’t have a diverse set of applicants or if you’re planning an event and there’s a lack of diversity among the speakers, don’t just accept it as a given – speak up about it.
  • Be aware of unconscious bias: No matter how unbiased we think we are, we may have subconscious negative opinions about people from certain social groups. Recognize the patterns of your own behavior, be more aware of your own biases, and develop plans that make the most of the talents and abilities of your team members.
  • Listen to improve: We are never 100% aware of our own biases, that’s why listening to colleagues and employees helps us improve. Sometimes it might be uncomfortable to hear that not all of our employees enjoy the same opportunities, but you can only take the necessary steps to correct this situation if you truly understand it.
  • Encourage and support change advocates: You will find advocates of diversity and inclusion at all levels and in all areas of a company. Encourage and empower them. Change doesn’t just happen at the top, it’s an organic process that needs to take place across all levels of the organization.

Bernd Leukert is a member of the Executive Board of SAP SE.

This story originally appeared on Business Trends on the SAP Community.

Categories: What's New

U.S. Wireless Industry Contributes $475 Billion Annually to America's Economy and Supports 4.7 Million Jobs, According to New Report

Accenture News - Thu, 04/05/2018 - 10:30
WASHINGTON; April 5, 2018 – The U.S. wireless industry contributes $475 billion annually to America’s economy and supports 4.7 million jobs, according to a new report commissioned by CTIA.
Categories: What's New

Accenture Positioned as a Leader in Gartner Magic Quadrant for Public Cloud Infrastructure Managed Services, Worldwide

Accenture News - Thu, 04/05/2018 - 08:59
NEW YORK; April 5, 2018 – Accenture (NYSE: ACN) has been positioned as a Leader in the 2018 Gartner Magic Quadrant for Public Cloud Infrastructure Managed Services, Worldwide report from market research and advisory firm Gartner, Inc.
Categories: What's New

SAP Completes Acquisition of Callidus Software Inc.

SAP News - Thu, 04/05/2018 - 08:34
DUBLIN, Calif., and WALLDORF SAP SE (NYSE: SAP) today announced that it has completed its acquisition of Callidus Software Inc. (Nasdaq: CALD), a market leader known for its lead to money applications, including sales performance management and configure-price-quote (CPQ).
  • Strategic move will strengthen SAP’s intelligent customer experience suite of solutions

These applications, marketed under the brand CallidusCloud, will provide SAP and its customers a differentiated, cloud-based customer relationship management (CRM) solution, putting SAP in a leading position to compete in the US$46 billion CRM market. SAP plans to consolidate CallidusCloud product assets within the SAP Hybris cloud portfolio, which is part of SAP’s Cloud Business Group.

Each outstanding share of Callidus Software Inc. common stock has been converted into the right to receive US$36 per share in cash. Callidus Software Inc. has notified the Nasdaq Stock Market of the completion of the acquisition and expects trading of its common stock to be suspended pending delisting.

For fiscal year 2017, CallidusCloud has reported revenue of US$253.1 million, with subscription revenue of US$198.2 million growing at 31 percent. SAP will provide an updated 2018 outlook including CallidusCloud in its first quarter 2018 earnings release.

CallidusCloud Strengthens the SAP Front Office Suite: Sales, Customer Data, Marketing, Service, Commerce

The acquisition of CallidusCloud completes SAP’s design of a new front office that extends beyond legacy CRM to an intelligent customer experience suite consisting of:

  • CallidusCloud solutions, which give companies tools to inspire and empower sales professionals to follow leads to cash, compensation and career success
  • Gigya solutions, which help businesses adopting a digital approach to marketing, sales and service to initiate and build trusted relationships with online customers by appropriately managing and collecting customer data
  • SAP Hybris marketing solutions, which take a data-rich approach to helping marketers engage consumers throughout the buyer’s journey
  • SAP Hybris service solutions, which focus on retention and ensuring businesses can keep customers by predicting how best to serve them
  • SAP Hybris omnichannel commerce and revenue capabilities, which empower businesses to engage consumers in any channel and on any device, immediately converting transactions to revenue and growth

SAP Perspective: Rob Enslin, Member of the Executive Board of SAP SE and President, SAP Cloud Business Group

“By connecting the front office to the back office and linking it to a digital core system, we are redefining CRM. With SAP Hybris solutions, we already have one of the most powerful customer experience suites on the market. By enhancing our CRM with CallidusCloud, we are delivering on our strategy to provide an end-to-end intelligent customer experience suite. When you integrate the front office into SAP S/4HANA with SAP Cloud Platform, this is how CEOs are looking to run an intelligent digital business.”

CallidusCloud Perspective: Leslie Stretch, CEO, Callidus

“Winning in digital business means delivering the best possible customer experience. Enterprises will only succeed if they can bring data and intelligence to the sales teams. Then, they will be able to consider marketing insights for sales orders or gain access to production and inventory information in real time, allowing them to set customer expectations on individual configurations and delivery dates. SAP’s own experience as a customer of CallidusCloud resulted in up to 50 percent improvement in sales productivity, and our partnership has led to numerous prebuilt integrations to SAP systems. Together, we are ideally positioned to deliver quickly on our joint offering to support digital transformation of the sales function.”

Market Perspective

  • Paul Greenberg, Founder, Managing Principal, The 56 Group: “The latter two acquisitions — Gigya in late 2017 and CallidusCloud — might be two of the best acquisitions that anyone made anywhere in the past couple of years. It also shows that SAP is attempting to align itself with the idea of customer centricity. That means moving away from its back-office heritage (though not dropping it) and repositioning as an empathetic, socially aware and customer-focused company with the ecosystem to support and enable it.”
  • Sheryl Kingstone, Research Director, Customer Experience & Commerce, 451 Research: “The market is ripe for replacement of legacy implementations since they can be complex to use because of their reliance on preconfigured rules that are difficult and costly to maintain. The future software stack that CallidusCloud brings to SAP features improved intelligent automation with dynamic workflows based on data that will accelerate not only the quote-to-cash process and improve dynamic pricing, but also provide sales intelligence that can be used to guide and motivate sales reps to maximize business goals such as profitability, inventory turns, etc.”
  • With the acquisition of Callidus Software Inc., SAP has become the leader in the sales performance management market and is also a leader in the CPQ market; see:
    • “Gartner Magic Quadrant for Sales Performance Management” (Jan. 15, 2018)
    • CallidusCloud is a leader in “Forrester Wave: Configure-Price-Quote Solutions, Q1 2017”

Product Availability

SAP plans to consolidate the CallidusCloud assets under the continued leadership of Leslie Stretch within the SAP Hybris cloud portfolio. The combined portfolio includes sales force automation, sales performance management, sales enablement and sales execution (CPQ and subscription billing). The existing management team will continue to lead CallidusCloud and support integration of CallidusCloud solutions with third-party installations. CallidusCloud solutions are expected to be sold on a stand-alone basis and in packages with SAP solutions.

More information on SAP’s plans for the intelligent customer experience suite and a road map for existing and future customers will be announced at SAP’s premier annual customer event, the SAPPHIRE NOW conference, in June 2018.

For more information, visit the SAP Hybris News Center and the SAP News Center. Follow SAP on Twitter at @saphybris and @sapnews.

About SAP

As market leader in enterprise application software, SAP helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 378,000 business and public sector customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

Note to editors:
To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. To view video stories on diverse topics, visit www.sap-tv.com. From this site, you can embed videos into your own Web pages, share video via email links, and subscribe to RSS feeds from SAP TV.

For customers interested in learning more about SAP products:
Global Customer Center: +49 180 534-34-24
United States Only: +1 (800) 872-1SAP (+1-800-872-1727)

For more information, financial community only:
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Carolyn Bass, CallidusCloud, +1 (415) 445-3232 , cbass@marketstreetpartnerscom, PT

For more information, press only:

Rajiv Sekhri, +49 (6227) 7-74871, rajiv.sekhri@sap.com, CET
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Michael Baxter, +49 151 1719 6185, m.baxter@sap.com, CET
SAP News Center press room; press@sap.com

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
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Categories: What's New

SAP Completes Acquisition of Callidus Software Inc.

SAP News - Thu, 04/05/2018 - 08:34
DUBLIN, Calif., and WALLDORF SAP SE (NYSE: SAP) today announced that it has completed its acquisition of Callidus Software Inc. (Nasdaq: CALD), a market leader known for its lead to money applications, including sales performance management and configure-price-quote (CPQ).
  • Strategic move will strengthen SAP’s intelligent customer experience suite of solutions

These applications, marketed under the brand CallidusCloud, will provide SAP and its customers a differentiated, cloud-based customer relationship management (CRM) solution, putting SAP in a leading position to compete in the US$46 billion CRM market. SAP plans to consolidate CallidusCloud product assets within the SAP Hybris cloud portfolio, which is part of SAP’s Cloud Business Group.

Each outstanding share of Callidus Software Inc. common stock has been converted into the right to receive US$36 per share in cash. Callidus Software Inc. has notified the Nasdaq Stock Market of the completion of the acquisition and expects trading of its common stock to be suspended pending delisting.

For fiscal year 2017, CallidusCloud has reported revenue of US$253.1 million, with subscription revenue of US$198.2 million growing at 31 percent. SAP will provide an updated 2018 outlook including CallidusCloud in its first quarter 2018 earnings release.

CallidusCloud Strengthens the SAP Front Office Suite: Sales, Customer Data, Marketing, Service, Commerce

The acquisition of CallidusCloud completes SAP’s design of a new front office that extends beyond legacy CRM to an intelligent customer experience suite consisting of:

  • CallidusCloud solutions, which give companies tools to inspire and empower sales professionals to follow leads to cash, compensation and career success
  • Gigya solutions, which help businesses adopting a digital approach to marketing, sales and service to initiate and build trusted relationships with online customers by appropriately managing and collecting customer data
  • SAP Hybris marketing solutions, which take a data-rich approach to helping marketers engage consumers throughout the buyer’s journey
  • SAP Hybris service solutions, which focus on retention and ensuring businesses can keep customers by predicting how best to serve them
  • SAP Hybris omnichannel commerce and revenue capabilities, which empower businesses to engage consumers in any channel and on any device, immediately converting transactions to revenue and growth

SAP Perspective: Rob Enslin, Member of the Executive Board of SAP SE and President, SAP Cloud Business Group

“By connecting the front office to the back office and linking it to a digital core system, we are redefining CRM. With SAP Hybris solutions, we already have one of the most powerful customer experience suites on the market. By enhancing our CRM with CallidusCloud, we are delivering on our strategy to provide an end-to-end intelligent customer experience suite. When you integrate the front office into SAP S/4HANA with SAP Cloud Platform, this is how CEOs are looking to run an intelligent digital business.”

CallidusCloud Perspective: Leslie Stretch, CEO, Callidus

“Winning in digital business means delivering the best possible customer experience. Enterprises will only succeed if they can bring data and intelligence to the sales teams. Then, they will be able to consider marketing insights for sales orders or gain access to production and inventory information in real time, allowing them to set customer expectations on individual configurations and delivery dates. SAP’s own experience as a customer of CallidusCloud resulted in up to 50 percent improvement in sales productivity, and our partnership has led to numerous prebuilt integrations to SAP systems. Together, we are ideally positioned to deliver quickly on our joint offering to support digital transformation of the sales function.”

Market Perspective

  • Paul Greenberg, Founder, Managing Principal, The 56 Group: “The latter two acquisitions — Gigya in late 2017 and CallidusCloud — might be two of the best acquisitions that anyone made anywhere in the past couple of years. It also shows that SAP is attempting to align itself with the idea of customer centricity. That means moving away from its back-office heritage (though not dropping it) and repositioning as an empathetic, socially aware and customer-focused company with the ecosystem to support and enable it.”
  • Sheryl Kingstone, Research Director, Customer Experience & Commerce, 451 Research: “The market is ripe for replacement of legacy implementations since they can be complex to use because of their reliance on preconfigured rules that are difficult and costly to maintain. The future software stack that CallidusCloud brings to SAP features improved intelligent automation with dynamic workflows based on data that will accelerate not only the quote-to-cash process and improve dynamic pricing, but also provide sales intelligence that can be used to guide and motivate sales reps to maximize business goals such as profitability, inventory turns, etc.”
  • With the acquisition of Callidus Software Inc., SAP has become the leader in the sales performance management market and is also a leader in the CPQ market; see:
    • “Gartner Magic Quadrant for Sales Performance Management” (Jan. 15, 2018)
    • CallidusCloud is a leader in “Forrester Wave: Configure-Price-Quote Solutions, Q1 2017”

Product Availability

SAP plans to consolidate the CallidusCloud assets under the continued leadership of Leslie Stretch within the SAP Hybris cloud portfolio. The combined portfolio includes sales force automation, sales performance management, sales enablement and sales execution (CPQ and subscription billing). The existing management team will continue to lead CallidusCloud and support integration of CallidusCloud solutions with third-party installations. CallidusCloud solutions are expected to be sold on a stand-alone basis and in packages with SAP solutions.

More information on SAP’s plans for the intelligent customer experience suite and a road map for existing and future customers will be announced at SAP’s premier annual customer event, the SAPPHIRE NOW conference, in June 2018.

For more information, visit the SAP Hybris News Center and the SAP News Center. Follow SAP on Twitter at @saphybris and @sapnews.

About SAP

As market leader in enterprise application software, SAP helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 378,000 business and public sector customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

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For more information, press only:

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SAP News Center press room; press@sap.com

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
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Categories: What's New

Millennials’ Impact on HR

SAP News - Wed, 04/04/2018 - 11:45
There is much information and research available on how millennials are different from previous generations and how these differences affect workplaces. We know each generation has their own uniqueness based on their social, political, financial, and technological experiences.

This intrigued us, so we recently surveyed and completed a focus group with millennials to test our theories and here are our insights:

  • First, we found that compensation and benefits are still the foundation to most employment decisions and the decision to stay at any given employer trends toward flexibility options and career growth.
  • The second theme was centered around why millennials work.
  • Lastly, trust and leadership are key factors with millennials.

Let’s discuss each of these in more detail.

What’s Driving Employment Decisions?

The fact that compensation and benefits are still the basis for many employment decisions followed by flexibility and career growth is not shocking. Compensation and benefits continue to be important engagement factors and specifically taps into the need for security. This premise of employers providing some degree of security and stability through total rewards has always been and continues to be key – for all generations.

The differentiator for millennials is in the flexibility and career options employers provide. Over the past 20 years as organizations have created more flexible work options – such as telecommuting, flex hours, and sabbaticals, these perks have become more normalized. Millennials benefit from this workplace shift and it aligns with their stated desires for work / life balance. They certainly appreciate the fluidity in work arrangements and career choices available to them, and have come to expect it somewhat, as do baby boomers and every other generation.

Career management is a key driver for millennials as it has been for every generation. The difference is millennials have the reputation of being impatient. Not fair. The way jobs are designed today and with the pace of doing business being faster and always changing, frequent job shifts or changes isn’t unusual. Millennials again have stumbled into a very agile marketplace and maybe they do push for change a little quicker than other generations, but who didn’t push in early career mode. All generations get a little impatient if they feel stagnated and without opportunity. The key is to remain keen to continuous learning and to realize that challenge and opportunity come in all directions and packages.

How to Differentiate from the Pack and Become the Preferred Employer of Choice for Millennials

Our second insight is about what motivates millennials to work. It was clear from our research that millennials work and make money to enjoy life. Whether the outcome is in providing for family, acquiring things they treasure or to travel, the job provides the means to live the lives they want. All generations have this same drive one way or another. The two of us are in two different generations and have experienced the same drive ourselves as well as through our parents. One of us grew up in rural Indiana and his father’s goal in working was to provide a good safe living situation for the family and go on vacation every year to Florida or Niagara Falls. That is what you did back then. This has not changed for most people, though the vacation destinations might be somewhat different.

What is different in motivation is that millennials have made it clear they want to work for organizations that do “something that makes life better.” They want assurance that their employer has a purpose “in the world.” This wish is usually not an employment deal breaker, but if given the choice, millennials will usually choose the employer that aligns best with their personal values and world views. Other generations may have wanted to work for great companies, but this generation appears more passionate about a company’s purpose. Maybe this is because there have been so many organizations that have disappointed or disappeared due to bad business – and in the process laid off millions of employees. Many of us have been let go or know family members, friends or colleagues who have been separated. As millennials, many have experienced it firsthand with their own parents. Trust is a big deal, more than in the past. More on trust later…. So, millennials are different in that they don’t trust their employer as much as prior generations and with good reason and that motivates them to connect with a values based employer before they jump into a particular culture.

Trust Me

Our final finding was about trust and leadership. Millennials have stated they prefer work environments that are powered by simplicity, practicality, mobile, personalization, health, and convenience. But the main factor describing what they need from their employer is trust. And trust is overwhelmingly defined as two things – trust in leadership values and trust that their employer will invest in their development. If your organization doesn’t have a leadership team that understands how to connect with millennials through transparency, innovation, and agility and is stuck in the mode of policies and hierarchical secrecy, cautionary business process vs always iterating, and moving at a snail’s pace step by step to everything – you are likely to experience difficulty attracting and retaining millennials. Leadership must embrace the new way of doing things. The days of “our employees are lucky to have a job” or “I’m glad that person resigned as we can find someone better” are gone. With a looming talent shortage and the ongoing complexities of business, millennials will be the majority of your workforce in the near future and we all need to ensure we are motivating and retaining this critical talent.

What Does This Mean for HR?

As you develop your HR strategies for the future, it will become more important to recognize what priorities are targeted for the entire workforce and where there are differences for each of the generations including millennials and the generations to follow.

Our conclusions from the research are as follows:

  • A few workforce strategies are somewhat consistent across all or most generations and include:
  • Compensation and benefits with a new focus on innovations in health and well-being.
  • Delivering fluid career management, learning and mentoring systems, and workplace flexibility to improve engagement and retention.
  • Suggested HR strategies to enhance your value proposition for millennials: Juice up and live your organizations’ mission, values, principles, and purpose; be sure to communicate how all your actions align to your purpose.
  • Leaders need to build trust with transparency, visibility, and constant communications; and the budget must be there and visibly obvious for investing in millennial (and all) talent.

There is fascinating research available on millennial buying habits. Look at the motorcycle industry, professional sports, or the housing market to see pronounced change with millennials. We would be wise in HR to recognize their buying nuances as these carry over into how they choose employers. Crafting and living a purpose-based employee value proposition is critical to attracting and retaining millennials — and just might work for your other employees as well!

Find out the five key trends and actions that can help businesses of all sizes address the challenges of digital transformation. IDC and SAP SuccessFactors collaborated to create roadmaps to executing on the latest HR trends. Check out the roadmaps here.

Lorna Stearns is vice president and HR executive advisor for SAP SuccessFactors.
Greg Selke is vice president and HR thought leadership executive for SAP SuccessFactors.

Categories: What's New

Millennials’ Impact on HR

SAP News - Wed, 04/04/2018 - 11:45
There is much information and research available on how millennials are different from previous generations and how these differences affect workplaces. We know each generation has their own uniqueness based on their social, political, financial, and technological experiences.

This intrigued us, so we recently surveyed and completed a focus group with millennials to test our theories and here are our insights:

  • First, we found that compensation and benefits are still the foundation to most employment decisions and the decision to stay at any given employer trends toward flexibility options and career growth.
  • The second theme was centered around why millennials work.
  • Lastly, trust and leadership are key factors with millennials.

Let’s discuss each of these in more detail.

What’s Driving Employment Decisions?

The fact that compensation and benefits are still the basis for many employment decisions followed by flexibility and career growth is not shocking. Compensation and benefits continue to be important engagement factors and specifically taps into the need for security. This premise of employers providing some degree of security and stability through total rewards has always been and continues to be key – for all generations.

The differentiator for millennials is in the flexibility and career options employers provide. Over the past 20 years as organizations have created more flexible work options – such as telecommuting, flex hours, and sabbaticals, these perks have become more normalized. Millennials benefit from this workplace shift and it aligns with their stated desires for work / life balance. They certainly appreciate the fluidity in work arrangements and career choices available to them, and have come to expect it somewhat, as do baby boomers and every other generation.

Career management is a key driver for millennials as it has been for every generation. The difference is millennials have the reputation of being impatient. Not fair. The way jobs are designed today and with the pace of doing business being faster and always changing, frequent job shifts or changes isn’t unusual. Millennials again have stumbled into a very agile marketplace and maybe they do push for change a little quicker than other generations, but who didn’t push in early career mode. All generations get a little impatient if they feel stagnated and without opportunity. The key is to remain keen to continuous learning and to realize that challenge and opportunity come in all directions and packages.

How to Differentiate from the Pack and Become the Preferred Employer of Choice for Millennials

Our second insight is about what motivates millennials to work. It was clear from our research that millennials work and make money to enjoy life. Whether the outcome is in providing for family, acquiring things they treasure or to travel, the job provides the means to live the lives they want. All generations have this same drive one way or another. The two of us are in two different generations and have experienced the same drive ourselves as well as through our parents. One of us grew up in rural Indiana and his father’s goal in working was to provide a good safe living situation for the family and go on vacation every year to Florida or Niagara Falls. That is what you did back then. This has not changed for most people, though the vacation destinations might be somewhat different.

What is different in motivation is that millennials have made it clear they want to work for organizations that do “something that makes life better.” They want assurance that their employer has a purpose “in the world.” This wish is usually not an employment deal breaker, but if given the choice, millennials will usually choose the employer that aligns best with their personal values and world views. Other generations may have wanted to work for great companies, but this generation appears more passionate about a company’s purpose. Maybe this is because there have been so many organizations that have disappointed or disappeared due to bad business – and in the process laid off millions of employees. Many of us have been let go or know family members, friends or colleagues who have been separated. As millennials, many have experienced it firsthand with their own parents. Trust is a big deal, more than in the past. More on trust later…. So, millennials are different in that they don’t trust their employer as much as prior generations and with good reason and that motivates them to connect with a values based employer before they jump into a particular culture.

Trust Me

Our final finding was about trust and leadership. Millennials have stated they prefer work environments that are powered by simplicity, practicality, mobile, personalization, health, and convenience. But the main factor describing what they need from their employer is trust. And trust is overwhelmingly defined as two things – trust in leadership values and trust that their employer will invest in their development. If your organization doesn’t have a leadership team that understands how to connect with millennials through transparency, innovation, and agility and is stuck in the mode of policies and hierarchical secrecy, cautionary business process vs always iterating, and moving at a snail’s pace step by step to everything – you are likely to experience difficulty attracting and retaining millennials. Leadership must embrace the new way of doing things. The days of “our employees are lucky to have a job” or “I’m glad that person resigned as we can find someone better” are gone. With a looming talent shortage and the ongoing complexities of business, millennials will be the majority of your workforce in the near future and we all need to ensure we are motivating and retaining this critical talent.

What Does This Mean for HR?

As you develop your HR strategies for the future, it will become more important to recognize what priorities are targeted for the entire workforce and where there are differences for each of the generations including millennials and the generations to follow.

Our conclusions from the research are as follows:

  • A few workforce strategies are somewhat consistent across all or most generations and include:
  • Compensation and benefits with a new focus on innovations in health and well-being.
  • Delivering fluid career management, learning and mentoring systems, and workplace flexibility to improve engagement and retention.
  • Suggested HR strategies to enhance your value proposition for millennials: Juice up and live your organizations’ mission, values, principles, and purpose; be sure to communicate how all your actions align to your purpose.
  • Leaders need to build trust with transparency, visibility, and constant communications; and the budget must be there and visibly obvious for investing in millennial (and all) talent.

There is fascinating research available on millennial buying habits. Look at the motorcycle industry, professional sports, or the housing market to see pronounced change with millennials. We would be wise in HR to recognize their buying nuances as these carry over into how they choose employers. Crafting and living a purpose-based employee value proposition is critical to attracting and retaining millennials — and just might work for your other employees as well!

Find out the five key trends and actions that can help businesses of all sizes address the challenges of digital transformation. IDC and SAP SuccessFactors collaborated to create roadmaps to executing on the latest HR trends. Check out the roadmaps here.

Lorna Stearns is vice president and HR executive advisor for SAP SuccessFactors.
Greg Selke is vice president and HR thought leadership executive for SAP SuccessFactors.

Categories: What's New
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